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STATE ROAD TRANSPORT CORPORATION versus REGIONAL TRANSPORT AUTHORITY AND ORS. ETC.

Citation: [1998] SUPP. 1 S.C.R. 301 · Decided: 01-09-1998 · Supreme Court of India · Bench: A.S. ANAND, B.N. KIRPAL · Disposal: Disposed off

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Judgment (excerpt)

U.P. STATE ROAD TRANSPORT CORPORATION 
v. 
REGIONAL TRANSPORT AUTHORITY AND ORS. ETC. 
SEPTEMBER 1, 1998 
[DR. AS. ANAND AND B.N. KIRPAL, JJ.] 
Motor Vehicles Act, 1939/U.P. State Road Transport Services 
(Developmelll) Rules, 1974: 
Ss. 58(2)(a), 68-F(1)(E)!R. 10(4)-Notified routeJ~Application by 
U.P. State Road Tramp011 C01poration for Stage Caniage pennit-Renewal 
of-Held, pemzit remains valid till the scheme remains in force-17zere is 110 
need for renewal of the existing pe1111it dwing the peliod when the scheme 
remains inf orce. 
A 
B 
c 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4637 of D 
1998 Etc. 
From the Judgment and Order dated 25.1.91 of the Allahabad High 
Court in C.M.W.P. No. 10064 of 1988. 
Pramod Swamp for the Appellant. 
R.C. Verma, R.B. Misra, Kamlendra Misra, Sunil K. Jain and Vijay 
Hansaria for the Respondents. 
The following Order of the Court was delivered : 
CA.No.4637 of 1998 (@ SLP(C) No. 13937/92) 
Leave granted. 
The short question requiring our consideration is : whether the U .P. 
E 
F 
State Road Transport Corporation (hereinafter the 'Corporation') is re-
G 
quired to renew the permits obtained by it to ply its vehicles on a notified 
route during the subsistence. of a scheme ? The High Court has answered 
the question in the affirmative. 
In short, the facts leading to the filing of the appeal are that the 
Regional Manager, U.P. State Road Transport Corporation, Gorakhpur H 
' 301 
302 
SUPREME COURT REPORTS [1998) SUPP. 1 S.C.R. 
A requested the Regional Transport Authorities for issuance of permits for 
routes covered by a scheme reserved for exclusive operation by the Cor-
poration. In response to the Regional Manager's letter, he was informed 
that according to the provisions of Section 58(2) (a) of the Motor Vehicles 
Act, 1939 (hereinafter the 'Act') permits could be issued for a maximum 
B period of three years and were thereafter required to be renewed. The 
appellants were informed that on payment of permit fee as well as the 
prescribed fee under Rule 55 of the U.P. Motor Vehicles Rules, 1940 
(hereinafter referred to as the 'Rules') the permit issued to the Corporation 
should be got renewed. The appellants questioned the directions issued by 
the authorities by filing a writ petition in the High Court. The High Court 
C vide its judgment dated 25.1.1991 allowed the writ petition partially. It was 
held that the Corporation was required to apply for renewal of the permit 
under section 68-F(l)(E) of the Act for the period prescribed under 
sub-section 58(2)(a) if the Act read with the relevant rules and on making 
such an application, permit issued to the Corporation would be renewed. 
D The High Court did notice that Rule 10( 4) of the Rules lays down that a 
permit issued to the Corporation is to remain valid till the scheme remains 
in force, but came to the conclusion that such a Rule could not override 
or be inconsistent with the provisions of section 58(2)(a) of the Act and, 
therefore, held that notwithstanding Rule 10( 4) of the Rules, renewal of 
the permit was essential to make it valid for the renewed period to ply the 
E vehicles by the Corporation. This appeal by special leave calls in question 
that judgment and order of the High Court. 
F 
We have heard the learned counsel for the parties and examined the 
record. 
Chapter IV of the Act deals with control of transport vehicles 
including the provisions for issuance of permits and the manner of renewal 
of tbe same. This Chapter, however, is general in nature and deals with 
11011-1;otified routes. Chapter IV-A of the Act on the other hand exclusively 
contains special provisions relating to the State Transport Undertakings 
G and concerns itself with notified routes. This chapter was inserted hy Act 
100 of 1956 w.e.f. 16.2.1967. 
Section 68-B of the Act which occurs in Chapter IV-A reads.: 
"68-B Chapter IV-A to override Chapter IV and other laws - The 
H 
provisions of this Chapter and the rules and orders made there-
-
U.P. S.R.T.C. v. REGIONAL TPT. AUTHORITY 
303 
under shall have effect notwithstanding anything inconsistent A 
therewith contained in Chapter IV of this Act or any other law for 
the time being in force or in any instrument having effect by virtue 
of any such law." 
A bare reading of section 68-B (supra), thus, shows that Chapter III A of 
the Act has an overriding effect notwithstanding anything contained in any B 
other law for the time being in force including Chapter IV of

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