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[Cites 8, Cited by 8]

Supreme Court of India

Cheran Transport Co. Ltd vs Kanan Lorry Service And Another on 10 December, 1976

Equivalent citations: 1977 AIR 1564, 1977 SCR (2) 389, AIR 1977 SUPREME COURT 1564, 1977 (1) SCC 604, 1977 2 SCR 389, 1977 2 SCJ 66, 1977 (1) SCWR 378, 1977 9 LAWYER 97, 1977 TAC 118, 1977 U J (SC) 49

Author: V.R. Krishnaiyer

Bench: V.R. Krishnaiyer, A.N. Ray, M. Hameedullah Beg

           PETITIONER:
CHERAN TRANSPORT CO. LTD.

	Vs.

RESPONDENT:
KANAN LORRY SERVICE AND ANOTHER

DATE OF JUDGMENT10/12/1976

BENCH:
KRISHNAIYER, V.R.
BENCH:
KRISHNAIYER, V.R.
RAY, A.N. (CJ)
BEG, M. HAMEEDULLAH

CITATION:
 1977 AIR 1564		  1977 SCR  (2) 389
 1977 SCC  (1) 604
 CITATOR INFO :
 RF	    1980 SC2044	 (7)
 R	    1992 SC 180	 (4)


ACT:
	Motor  Vehicle Act -- Secs. 58,68--C 68D(3),  68F(1D)--Stage
	carriage operator--Permit--Renewal--Renewal application made
	within time-- Whether can be defeated by Publication Scheme.



HEADNOTE:
	The respondent was Stage Carriage Operator whose two permits
	were  to  expire in January and March 1976.   In  the  usual
	course	and  in	 compliance  with section 58  of  the  Motor
	Vehicles  Act,	1939, he applied for renewal more  than	 120
	days  ahead but at the time of the actual date of expiry  of
	the  permits  a draft scheme under part IV-A had  been	pub-
	lished.	 The State withdrew the draft scheme under part IV-A
	for  some  technical reasons and republished in	 July  1975,
	after the appellants' permits had expired.  Section  68F(1D)
	provides  that no permit shall be granted or renewal  during
	the period intervening between the date of publication under
	s.  68C	 of any scheme and the date of	publication  of	 the
	approved  or modified scheme.  The proviso to the said	sec-
	tion provides that if a permit expires after the publication
	of  the	  scheme  such permit may be renewed for  a  limited
	period	but the renewed permit	shall cease to be  effective
	on  the publication of the scheme under s. 68D(3).  Applying
	the  prohibition  contained  in	 s.  68F(1D)  the   Regional
	Transport   Authority rejected the prayer for renewal.	 The
	High  Court set aside that order directed the grant  of	 the
	renewal.
	Dismissing the appeals,
	    HELD:  1. At the time the respondents' permit expired  a
	draft  scheme  had already been published but  the  approved
	scheme	had  not been, published. Any  permit  holder  whose
	permit	expires during this spell is eligible for a  renewal
	as specified in the proviso.  The fact that the draft scheme
	was  later withdrawn ca.not affect the rights to a  renewal.
	Renewal of the permit however would be to the extent contem-
	plated by section 68F(1D).  [390G-H]
	    2.	 (a) No permit or renewal except to the	 extent	 ex-
	pressly	 saved	by  section 68F(1D) can be  granted  by	 the
	Regional  Transport Authority during the period between	 the
	date of publication of any scheme and  the  date  of  publi-
	cation of the approved scheme. [391C]
	    (b)	 If  a permit expires after the publication  of	 any
	draft	scheme	 such permit is eligible for renewal  for  a
	limited period as set out in the proviso. The special provi-
	sion  contained in that proviso cannot be stretched  on	 the
	ground of possible anomalies or unjust consequences to cover
	permits	 expiring even before the publication of  the  draft
	scheme.	  Where language is plain the interpretation  cannot
	take  the  shape of addition  or  interstitial	legislation.
	[391C-D]
	    3.	If a permit holder whose permit is about  to  expire
	diligently does in the normal course, all that he needs	 and
	all  that he can, that is to say, if he sets in	 motion	 the
	legal  machinery  for the grant of renewal as laid  down  in
	section	 58, the fact that a scheme is published before	 the
	actual	 grant	of renewal will not intercept or  extinguish
	the  process  of law set in motion by  the  application	 for
	renewal.  If for reasons beyond the control of the applicant
	the renewal process gets delayed or prolonged he. cannot  be
	penalised.   Renewal  is a legal process and not  the  final
	act.  Save in this category of cases all other permits which
	have  expired before the draft scheme is  published,  suffer
	the ban of s. 68F(1D).	However, no permit can ensure beyond
	the time of the publication of the approved scheme.   [391D-
	F]
	390



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1349- 1350/76.

Appeals by Special Leave from the Judgment and Decree dated the 12th October 1976 of the Madras High Court in Writ Petition Nos. 5881 and 5884 of 1975.

V.P. Raman, Addl. Sol, General of lndia, (Mrs.) N. G, Krishna Iyengar, Shri Narain, K.J.' John, D.N. Mishra for the Appellant.

F.S. Nariman, M. N. Rangachari, A.R. Ramanathan, Jayaraman,M.M.L. Srivastava and A.T.M. Sarapath for Respond- ent No. 1.

The Judgment of the Court was delivered by-- KRISHNA IYER, J. The short ,question, involving a point of construction of s. 68-F(1D), has been raised by the Additional Solicitor General in these appeals by Special Leave.

The respondent was a stage carriage operator whose two permits ,were to expire in January and. March 1976. In the usual course and in compliance with s. 58. of the Motor Vehicles Act, 1939 (for short, 'The Act') he applied for renewal more than 120 days ahead but at the time of the actual date of expiry of the permits a-draft scheme under part IV-A had been published. This fulfilled the require- ments of the proviso to s. 68-F(1D) and entitled the appel- lant to renewal for the limited period stated in the said proviso. But the State withdrew the draft scheme for some technical reasons and republished it in July 1975, after the appellant's permit had expired. Applying the prohibition contained in s. 68-F(1D) the Regional Transport Authority (for short the 'R.T.A.') rejected the prayer for renewal. However, the High Court set aside that order and directed the grant of renewal, on a certain view of the section which the Additional Solicitor General contends goes beyond the limits of the plain words used. The aggrieved State ap- peals.

While we are satisfied that on the peculiar facts. of this case the respondent can sustain the permits the legal position canvassed by the appellant appears to be correct. At the time the respondent's permit expired a draft scheme had already been published but the approved scheme had not been published. Any permit holder whose permit expires during this spell is eligible for a renewal as specified in the proviso. The fact that the draft scheme was later withdrawn cannot affect the right to a renewal. We, therefore, hold that the renewal of permit shall remain to the extent contemplated in the proviso to s. 68-F(1D). Before we consider the legal question we may read s. 68- F(1D).

"(1D) Save as otherwise provided in sub-

sectiOn (1A) or sub-section (1G), no permit shall be granted or renewed during the period intervening between the date of publication, under Section 68-(2 of any scheme and the date of publication of the approved or modified scheme, in favour of 391 any person for any class or road transport service in relation to an area or route or portion thereof covered by such scheme. Provided that where the period of opera- tion of a permit in relation to any area, route, or portion thereof specified in a scheme published under Section 68-C expires after such publication, such permit may be renewed for a limited period, but the permit so renewed shall cease to be effective on the publication of the scheme under sub-section (3) of Seetion 68-D."

Three propositions plainly emerge.

No permit or renewal, except to the extent expressly saved by s. 68-F(ID), can be granted by the R.T.A. during the period between the date of publication of any scheme and the date of publication of the approved scheme. (2) If a permit expires after the publication of any draft scheme such permit is eligible for renewal for a limited period as set out in the proviso. This special provision cannot be stretched, on the ground of possible anomalies or unjust consequences, to cover permits expiring even before the publication of the draft scheme. Where the language is plain, interpretation cannot take the shape of addition or interstitial legislation. (3) A rider to proposition No. 2 has to be added. If a permit holder whose permit is about to expire, diligently does, in the normal course, all that he need and all that he can, that is to say, apply for renewal before 120 days, in the manner laid down in s. 58 of the Act, he sets in motion the legal machinery for the grant of renewal which must ordinarily culminate. in renewal within 120 days. The fact that a scheme is published before the actual grant of renewal will not intercept or extinguish the process of law set in motion by the applica- tion for renewal. In such cases the R.T.A. has to act promptly and if the application for renewal is in conformity with the law it has to consider it and grant or reject according to merit. If, for reasons beyond the control of the applicant, the renewal process gets delayed or pro- longed he cannot be penalised. Renewal is a legal process, not the final act. Save in this category of cases, all other permits which have expired before the draft scheme is published, suffer the ban of s. 68-F(1D). However, no permit can ensure beyond the time of the publication of the approved scheme. This saves cases of bona-fide applications for renewal of permits, not calculated to thwart a scheme, and helps the travelling public during the interregnum when the scheme is under scrutiny. The wider proposition accept- ed by the High Court that all permits which have expired before the draft scheme is published can be renewal does not appear to be correct and does not have our approval. With this declaration of the law we dismiss the appeals. No order as to costs.

	P.H.P.				       Appeals dismissed.
	9--1546SCI/76
	392