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[Cites 11, Cited by 25]

Supreme Court of India

M/S. Krishna Bus Service Pvt. Ltd. Etc. ... vs State Of Haryana & Ors on 25 July, 1985

Equivalent citations: 1985 AIR 1651, 1985 SCR SUPL. (2) 330, AIR 1985 SUPREME COURT 1651, 1985 (3) SCC 711 (1985) 2 CURCC 682, (1985) 2 CURCC 682

Author: E.S. Venkataramiah

Bench: E.S. Venkataramiah, R.B. Misra

           PETITIONER:
M/s. KRISHNA BUS SERVICE PVT. LTD. ETC. ETC.

	Vs.

RESPONDENT:
STATE OF HARYANA & ORS.

DATE OF JUDGMENT25/07/1985

BENCH:
VENKATARAMIAH, E.S. (J)
BENCH:
VENKATARAMIAH, E.S. (J)
MISRA, R.B. (J)

CITATION:
 1985 AIR 1651		  1985 SCR  Supl. (2) 330
 1985 SCC  (3) 711	  1985 SCALE  (2)72
 CITATOR INFO :
 F	    1987 SC 628	 (2,10)


ACT:
     The Punjab	 Motor Vehicles	 (Haryana  First  Amendment)
Rules, 1973  adding clause  (d) to  1062 whereby the General
Manager, Haryana  Roadways  is	conferred  with	 all  powers
exercisable by	a Deputy  Superintendent of Police under the
Motor Vehicles	Act, 1939  (Act IV  of 1939)  - Whether	 the
conferral of  such a  power is violative of Article 19(1)(d)
of the Constitution and otherwise contrary to the object and
spirit of  the Act,  in view  of  his  position	 as  General
Manger.



HEADNOTE:
     Under section 133-A of the Motor Vehicles Act, 1939 the
State Government may for the purpose of carrying into effect
the  provisions	 of  the  Act  establish  a  motor  vehicles
department and appoint as officers thereof such as it thinks
fit. Under  Rule 10:2  of the  Punjab Motor  Vehicles Rules,
1940 (as in force in the State of Haryana) as it stood prior
to March  16, 1973, under class II, the State Government had
appointed and  empowered (a) Secretaries, Regional Transport
Authorities;  (b)   Extra  Assistant   Transport  Controller
(Operation); and  (c) Extra  Assistant Transport  Controller
(Traffic)  with	  police  powers   exercisable	 by   Deputy
Superintendent of  Police under	 the Act.  There are several
powers, like  in sections  129. 129-A  of the  Act, which  a
Police Officer may exercise under the Act and the rules made
thereunder against  persons who are carrying on the business
of providing motor transport facilities.
     The appellant  in the  Civil Appeal and the petitioners
in the	Writ Petitions	carry on  their	 business  of  motor
transport in  the State	 of Haryana.  All the motor vehicles
operators are  required to comply with the provisions of the
Act and	 the rules made thereunder. Non-compliance with many
of those  provisions would  result in  prosecution and those
who are	 found guilty are liable to be punished. The Haryana
Roadways is  a department  of the  State of Haryana. It also
carries on  the business  of providing	passenger  transport
facilities  in	 competition  with  the	 appellant  and	 the
petitioners herein.  It owns  a fleet  of motor vehicles for
the purpose of its business. The Haryana Roadways
331
is also subject to the various provisions of the Act and the
rules  made  thereunder.  The  General	Manager	 of  Haryana
Roadways  is   principally  responsible	  for	the   proper
administration of the Haryana Roadways.
     By a  notification dated  March  16,  1973	 called	 the
Punjab Motor  Vehicles (Haryana	 First Amendment) Act Rules,
1973, the  General Manager  Haryana Roadways  was  conferred
with the  powers exercisable  by a  Deputy Superintendent of
Police by  virtue of the addition of clause (d) in Rule 10:2
of the Punjab Motor Vehicles Rules, 1940.
     The appellant in C.A. No. 2890/85 filed a writ petition
No. 1770/78 on the file of the Punjab and Haryana High Court
challenging the	 said conferral	 of power  upon the  General
Manager, which	was dismissed  in limine  and  has  come  in
appeal by  way of  Special Leave. The writ petitioners under
Article 32  also contend: (i) the appointment of the General
Manager, Haryana  Roadways, who	 is himself  responsible for
the proper  management of  the	activities  of	the  Haryana
Roadways and  its prosperity  and profitability	 and who  is
carrying on  business  in  competition	with  other  private
operators as  an officer  who can exercise the powers of the
Deputy Superintendent  of Police  under the Act is violative
under Article  19 (1)(g)  of  the  Constitution	 and  it  is
otherwise contrary  to the object and spirit of the Act; and
(ii) that the General Manager, Haryana Roadways would not be
able  to  discharge  his  functions  satisfactorily  in	 the
interests of the general public since as being himself under
a duty	to comply  with the  provisions of  the Act  and the
rules made  thereunder in  respect of  the motor vehicles of
the Haryana  Roadways cannot  be expected  to discharge	 the
functions  of	checking,  inspection,	search	and  seizure
regarding  the	motor  vehicles	 belonging  to	the  Haryana
Roadways and  to take  appropriate steps  to  prosecute	 the
officers of his own department wo are not complying with the
provisions of the Act.
     Allowing the appeal and the petitions, the Court
^
     HELD: 1.1. The Notification dated March 16, 1973 called
the Punjab  Motor Vehicles  (Haryana First Amendment) Rules,
1973 by	 which the  General Manager,  Haryana  Roadways	 was
conferred the  powers exercisable by a Deputy Superintendent
of Police under the Act is invalid. [338 D-E]
     1.2 The  appointment of  the General  Manager,  Haryana
Roadways who  is directly  responsible for running its motor
vehicles as  one of the officers who can exercise the powers
of a
332
Deputy Superintendent  of Police  under the  Act imposes  an
unreasonable restriction  on the  fundamental right  of	 the
private motor  vehicles operators and is therefore violative
of Article 19(1)(g) of the Constitution. [337 G-H]
     1.3 The  powers of	 stopping the motor vehicles and the
powers	of   inspection,  search,   seizure  and   detention
exercised under	 the Act  are serious  restrictions  on	 the
fundamental  right   of	 the  operators	 of  motor  vehicles
guaranteed under  Article 19(1)	 (g)  of  the  Constitution.
These powers  can be  considered as  reasonable restrictions
only when  they are  exercised properly	 in the interests of
the general  public. They should be reasonable both from the
substantive as	well  as  the  procedural  standpoint.	Such
powers should,	therefore be  entrusted to  a person  who is
expected to exercise them fairly and without bias. [337 A-B]
     The General  Manager of Haryana Roadways who is a rival
in business  to the  private operators	of motor vehicles in
the State  and is  intimately connected	 with the running of
motor vehicles cannot be expected to discharge his duties in
a fair	and reasonable	manner. An unobstructed operation of
the motor  vehicles by	private owners	operating along	 the
same route  or routes would naturally affect the earnings of
the Haryana  Roadways. Therefore,  there is every likelihood
of his	being over-zealous  in	discharging  his  duties  of
stopping a  vehicle and	 in searching, seizing and detaining
motor vehicles	belonging to  others and  at the  same	time
excessively lenient in the case of vehicles belonging to his
own department.	 If in discharging his duties in the case of
vehicles belonging  to others he fails to give due regard to
the interests  of the  owners thereof  he would be violating
their fundamental right to carry on business in a reasonable
way. If	 he  is	 too  lenient  in  inspecting  the  vehicles
belonging to  his  own	department,  the  interests  of	 the
travelling public  at large  would be  in peril. In both the
cases there  is a  conflict between his duty on the one hand
and his	 interest on the other. Moreover administration must
be rooted  in confidence  and that  confidence is  destroyed
when people  begin to  think that  the officer	concerned is
biased. This  is not a case which is governed by the rule of
necessity. As  It is,  there are many other officers who are
entrusted with	the powers  of the police officers under the
Act. And,  therefore, there  is no  necessity to appoint the
General Manager	 of Haryana  Roadways also  to exercise	 the
said powers. Further the appointment is not in the interests
of the	general public	since large number of motor vehicles
owned by  the Haryana  Roadways	 would	not  be	 subject  to
inspection and checking
333
by an  independent agency.  The legislature  could not	have
intended while	enacting section  133-A of  the Act  that  a
person who  was himself	 directly responsible for the proper
running of  the motor  vehicles according  to law  could  be
appointed as the inspecting and investigating officer by the
State Government  for the purpose of enforcing the Act. [337
B-F, 338 A-C]
     Junta Motor  Transport and	 Another v.  State of  Uttar
Pradesh, 1970 Allahabad Law Journal, Page 810, approved.



JUDGMENT:

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2890 of 1985.

From the Judgment and Order dated 1.2.1984 of the Punjab and Haryana High Court in L.P. A. No. 28 of 1984.

AND Writ Petition Nos. 12895-12896 of 1984.

Under Article 32 of the Constitution of India S.K. Mehta for the Appellant in C.A. No. 2890 of 1985 and Petitioner in W.P. Nos. 12895-96/84.

M.K. Dua, P.N. Puri, Aman Vachhar for the Petitioners in W.P. Nos. 12895-96 of 1984.

M.S. Gujral and R.N. Poddar with him for the Respondents in W.P. Nos. 12895-96 of 1984.

Anil Dev Singh, N.S. Das Behl and R.N. Poddar with him for the Respondents in C.A. No. 2890 of 1985.

The Judgment of the Court was delivered by VENKATARAMIAH, J. In the above cases the short question which arise for consideration is whether the appointment of the General Manager of Haryana Roadways as an officer who can exercise the powers exercisable by a Deputy Superintendent of Police under the Motor Vehicles Act, 1939 (hereinafter referred to as 'the Act') by the Government of Haryana under the Notification dated March 16, 1973 issued under section 133-A of the Act is valid or not.

The appellant in the above appeal by special leave questioned the validity of the appointment of the General Manager of Haryana Roadways under the Notification, referred to above, as an 334 officer entitled to exercise the powers of a Deputy Superintendent of Police under the Act in Writ Petition No. 1770 of 1978 on the file of the High Court of Punjab and Haryana. The Writ Petition was dismissed by the High Court in limine. Aggrieved by the decision of the High Court the appellant has preferred the above appeal. The petitioners in the above mentioned Writ Petitions have questioned the validity of the above said Notification under Article 32 of the Constitution. Since the point involved in the Civil Appeal and in the Writ Petitions is common, we propose to dispose of all these cases by this common judgment.

The appellant in the Civil Appeal is a company carrying on the business of motor transport. Its motor vehicles operate within the State of Haryana also. The petitioners in the Writ Petitions are also carrying on the same kind of business in the State of Haryana. All the motor vehicles operators are required to comply with the provisions of the Act and the rules made thereunder. Non-compliance with many of those who are found guilty are liable to be punished. The Haryana Roadways is a department of the State of Haryana. It also carries on the business of providing passenger transport facilities in competition with the appellant and the petitioners herein. It owns a fleet of motor vehicles for the purpose of its business. The Haryana Roadways is also subject to the various provisions of the Act and the rules made thereunder. The General Manger of Haryana Roadways is principally responsible for the proper administration of the Haryana Roadways.

Under section 133-A of the Act the State Government may for the purpose of carrying into effect the provisions of the Act establish a motor vehicles department and appoint officers thereof such persons as it thinks fit. Section 129 of the Act provides that any police officer authorised in this behalf or other person authorised in this behalf by the State Government may, if he has reason to believe that any identification mark carried on a motor vehicle or any licence, permit, certificate of registration, certificate of insurance or other document produced to him by the driver or person in charge of a motor vehicle is a false document within the meaning of section 464 of the Indian Penal Code, seize the mark of document and call upon the driver or owner of the vehicle to account for his possession of or the presence in the vehicle of such mark or document. Under section 129-A of the Act any police officer authorised in this behalf or other person authorised in this behalf by the State Government 335 may, if he has reason to believe that a motor vehicle has been or being used in contravention of the provisions of section 22 or without the permit required by sub-section (1) of section 42 or in contravention of any condition of such permit relating to the route on which or the area in which or the purpose for which the vehicle may be used, seize and detain the vehicle, and for this purpose take or cause to be taken any steps he may consider proper for the temporary safe custody of the vehicle. On such seizure it is open to the officer concerned to lodge a prosecution before the magistrate competent to try it. There are several other powers which a police officer may exercise under the Act and the rules made thereunder against persons who are carrying on the business of providing motor transport facilities.

Rule 10.2 of the Punjab Motor Vehicles Rules, 1940 (as in force in the State of Haryana) as it stood prior to March 16, 1973 read as follows:

"10.2. Classification of Officers - (1) There shall be four classes of the staff, namely, Class I, Class II, Class III and Class IV. (2) The officers included in each class and the police powers exercisable by them under the Act, shall be as noted below against each. The police powers exercisable by the officers of the Transport Department are in respect of Motor Vehicles Offences under the Motor Vehicles Act, 1939 only:
Class I xx xx xx Class II
(a) Secretaries, Regional Powers exercisable Transport Authorities by Dy. Supdt. of Police.
(b) Extra Assistant Transport - do - Controller (O)
(c) Extra Assistant Transport - do -

Controller (T) xx xx xx xx 336 But by Notification dated March 16, 1973, referred to above, the Haryana Government for the Transport Department in exercise of its powers under section 133-A of the Act amended Rule 10.2 by adding clause (d) in the category of Class II Officers referred to in Rule 10.2 of the Punjab Motor Vehicles Rules, 1940, the relevant portion of which reads as follows :-

"2. In the Punjab Motor Vehicles Rules, 1940 after clause (c) under class II in sub-rule 2 of rule 10.2 the following clause (d) shall be added namely:-
(d) General Manager, Power exercisable by a Haryana Roadways. Deputy Superintendent of Police.

After the issue of the above Notification, the General Manager, Haryana Roadways commenced to exercise the powers exercisable by a Deputy Superintendent of Police under the Act.

We are concerned in these cases with the validity of the above Notification dated March 16, 1973 by which the General Manager, Haryana Roadways is empowered to exercise the powers of a Deputy Superintendent of Police under the Act only.

The contention urged by the appellant and the petitioners in these cases is that the appointment of the General Manager, Haryana Roadways, who is himself responsible for the proper management of the activities of the Haryana Roadways and its prosperity and profitability and who is carrying on business in competition with other private operators as an officer who can exercise the powers of the Deputy Superintendent of Police under the Act is violative under Article 19(1)(g) of the Constitution and it is otherwise contrary to the object and spirit of the Act. It is further urged that the General Manager, Haryana Roadways would not be able to discharge his functions satisfactorily in the interests of the general public since he being himself under a duty to comply with the provisions of the Act and the rules made thereunder in respect of the motor vehicles of the Haryana Roadways cannot be expected to discharge the functions of checking, inspection, search and seizure regarding the motor vehicles belonging to the Haryana Roadways and to take appropriate steps to prosecute the officers of his own department who are not complying with the provisions of the Act. In a given case it is likely that the General Manger himself may have to be prosecuted for not complying with law.

337

The powers of stopping the motor vehicles and the powers of inspection, search, seizure and detention exercised under the Act are serious restrictions on the fundamental right of the operators of motor vehicles guaranteed under Article 19(1)(g) of the Constitution. These powers can be considered as reasonable restrictions only when they are exercised properly in the interests of the general public. They should be reasonable both from the substantive as well as the procedural standpoint. Such powers should, therefore, be entrusted to a person who is expected to exercise them fairly and without bias. The General Manager of Haryana Roadways who is a rival in business to the private operators of motor vehicles in the State and is intimately connected with the running of motor vehicles cannot be expected to discharge his duties in a fair and reasonable manner. An unobstructed operation of the motor vehicles by private owners operating along the same route or routes would naturally affect the earnings of the Haryana Roadways. There is, therefore, every likelihood of his being over-zealous in discharging his duties of stopping a vehicle and in searching, seizing and detaining motor vehicles belonging to others and at the same time excessively lenient in the case of vehicles belonging to his own department. If in discharging his duties in the case of vehicles belonging to others he fails to give due regard to the interests of the owners thereof he would be violating their fundamental right to carry on business in a reasonable way. If he is too lenient in inspecting the vehicles belonging to his own department, the interests of the travelling public at large would be in peril. In both the cases there is a conflict between his duty on the one hand and his interest on the other. Moreover administration must be rooted in confidence and that confidence is destroyed when people begin to think that the officer concerned is biased. This is not a case which is governed by the rule of necessity. As it is, there are many other officers who are entrusted within the powers of the police officers under the Act. There was, therefore, no necessity to appoint the General Manager of Haryana Roadways also to exercise the said powers. We are, therefore, of the opinion that the appointment of the General Manager, Haryana Roadways who is directly responsible for running its motor vehicles as one of the officers who can exercise the powers of a Deputy Superintendent of Police under the Act imposes an unreasonable restriction on the fundamental right of the private motor vehicles operators and is therefore violative of Article 19(1)(g) of the Constitution. We however make it clear that the appointment of other officers of the State Government is not bad even though the Government is the owner of the vehicles as their connection with the running of the 338 vehicles is too remote. The appointment of the General Manager as an officer who can exercise the powers of the Deputy Superintendent of Police under the Act is also not in the interests of the general public since the large number of motor vehicles owned by the Haryana Roadways would not be subject to inspection and checking by an independent agency. Can we expect a fair investigation by a police officer into a criminal case in which his own kith and kin are involved as the accused? The position is not different in this case. The Legislature could not have intended while enacting section 133-A of the Act that a person who was himself directly responsible for the proper running of the motor vehicles according to law could be appointed as the inspecting and investigating officer by the State Government for the purpose of enforcing the Act.

Our view receives support from a decision of the High Court of Allahabad in Junta Motor Transport and Another v. State of Uttar Pradesh [1970] Allahabad Law Journal, Page 810, by which the appointment of Gazetted Officers, Station Superintendents, Traffic Superintendents and Assistant Traffic Inspectors of Uttar Pradesh Roadways as the prescribed authorites to enforce the Uttar Pradesh Motor Gadi (Yatra-kar) Adhiniyam, 1962 and the rules made thereunder was held to be void.

The appeal and the writ petitions are accordingly allowed. The impugned Notification dated March 16, 1973 called the Punjab Motor Vehicles (Haryana First Amendment) Rules, 1973 by which the General Manager, Haryana Roadways was conferred the powers exercisable by a Deputy Superintendent of Police under the Act is held to be invalid and is, therefore, quashed. There will, however, be no order as to costs.

S.R.				 Appeal & Petitions allowed.
339