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TMT. T.P.K. THILAGAVATHY versus THE REGIONAL TRANSPORT AUTHORITY AND OTHERS

Citation: [1994] SUPP. 6 S.C.R. 180 · Decided: 29-11-1994 · Supreme Court of India · Bench: A.M. AHMADI · Disposal: Dismissed

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Judgment (excerpt)

A 
TMT. T.P.K. THILAGAVATHY 
v. 
THE REGIONAL TRANSPORT AUTHORITY AND OTHERS 
NOVEMBER29, 1994 
B 
[A.M. AHMADI, C.J., R.M. SAHAI AND B.L. HANSARIA, JJ.] 
Tamil Nadu Motor Vehicles (Special Provisions) Act, 1992-
Provisions prohibiting grant of any permit overlapping whole or part of the 
notified route after 3 0. 6. 90 held valid. 
C 
S.10-1nterpretation of-Held-Could not be interpreted to enable 
grant of permits even after 30.6.90 upto the date of publication of the Act 
i.e. 31. 7.92. Grant of permit after 30.6.90-Legality of-Such permits even 
though granted on consent memo, held, rightly quashed by the High Court. 
Constitution of India, 1950-Article 14-Prohibition of grant of any 
D 
permit overlapping whole or part of notified route after 30th June 1990-
Creating two classes among small operators-Cut off date-Held, not 
violative of. 
E 
F 
G 
H 
The appellants, private stage carriage operators to whom permits 
had been granted between 1976 and 1990 for plying either on intra or 
inter state routes, were excluded from operating on any part of the 
nationalised routes after the addition of chapter IV-A in the Motor 
Vehicles Act, 1936; Chapter IV-A framed various schemes in 1976 
nationalising different routes. But State Transport Authority issued 
new permits and renewed existing ones for bifurcated and traversed 
part of the notified route. State Undertaking challenged this action of 
ST A before the High Court and the permits which overlapped even a 
portion of nationalised routes were declared invalid. This decision was 
challenged in this court by Pandiayan Roadways* and the decision of 
High Court was upheld and permits granted for such routes were held 
invalid. This rendered approximately 4000 permits invalid. To meet 
this situation State issued Government Order No. 2222 of 87 and 
introduced a legislative bill for renewal of permits of such holders, but 
the bill was not passed. In the meantime Motor Vehicles Act 1936 was 
repealed by Motor Vehicles Act 1988 (Act No. 59 of 1988) in which 
• 
Pandiyan Roadways Corporation Ltd. v. Thiru MA. Egappan, AIR (1987) SC 958 
= {1987) 2 SCR 391. 
180 
T.P.K. THILAGAVATHYv. REGNL. TPT. AUTH. 
181 
Chapter VI contained similar provisions of Chapter IV-A of old Act. A 
The new Act came into force on 1st July, 1989 and it permitted pending 
schemes to be published and approved within one year i.e. on or before 
30th June 1990, on expiry of which it was to lapse. Government in the 
wake of interpretation placed by this Court in Pandiyan Roadways, 
issued G.O. No. 1794 and 1990 withdrawing its earlier order of 87, and 
an ordinance repealing the legislative assembly bill. 
B 
The writ petition, which was filed by the small operators against 
=-
this was dismissed by the court and Tamil Nadu Motor Vehicle (Special 
provisions) Repeal Act, 1991 was passed repealing the Legislative 
Assembly Bill. The Operators approached this Court in which an 
interim order was passed. The State Legislature enacted the impugned C 
Act which came into force on 31st July, 1992. The Act placed complete 
embargo on issue of fresh permits after 30th June, 1990 as it provided 
that sections 1 to 5 and 8 to 11 were deemed to have come into force on 
4th June, 1976 and ceased to be in force on 30th June, 1990. 
Its validity was challenged as violative of Article 14 for creating D 
two classes among small operators - one, those to whom permits had 
been granted on or before 30th June, 1990 and others to whom permits 
were issued after 30th June, 1990, by taking 30th June, 1990 as cut-off 
date which was arbitrary and against legislative objective and purpose. 
High Court dismissed the Writ Petition by holding that the cut-off date E 
was rational and prohibition in the Act against grant of any new permit 
was valid. Hence, these appeals. 
Dismissing the appeals, this Court 
HELD : 1.1. From the statement of objects and reasons and the F 
provisions in the Motor Vehicles Act, it is clear that the Legislature 
intended, in public interest, to remove the sudden hardship to common 
public due to decision rendered by this Court in Pandiyan Roadways. 
But the State Legislature having accepted the interpretation placed by 
this Court in Pandiyan Roadways, except for those to whom permits 
were granted earlier, the appellants cannot claim to be treated G 
similarly and placed in that class of operators who were granted 
permits before 1st July, 1990. The State Legislature, in keeping with 
the decisi

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