Case: K. M. Shanmugam Vs. The S. R. V. S. (P) Ltd. &amp; Ors

marks, he was not given the permits as in the view of the said Authority he was guilty of misconduct. As between the other applicants, the appellant having secured the highest number of marks, he was given a permit. But on appeal the Appellate Tribunal re-allotted the marks and under the re-allotment the appellant got the highest number of marks; and because of that fact and also for the reason that he was a small operator of two buses, who should be given an opportunity to build up a viable unit as quickly as possible, he was given the permit by the appellate Tribunal upholding the order of the Regional Transport Authority. One of the questions raised there was whether the appellant was entitled to marks under Col. 2 for repair and maintenance facilities at Dharapuram the Appellate Tribunal found that he had such facilities. The appellant filed a writ in the High Court and the learned single Judge thought that some mistakes had been committed by the Appellate Tribunal in the allotment of marks and that it acted in contravention of the directions given by the Government under the said G.O., but dismissed the petition on the ground that, as the said instructions are only executive directions, their contravention did not confer any right on the parties before the tribunal on Letters Patent Appeal a Division Bench of that Court set aside that order on the ground that the Appellate Tribunal had taken into consideration the following two irrelevant considerations: (i) the appellants claim should suffer because of the punishment for his past misconduct, and (ii) the third respondent being a small operator, he would be entitled to better consideration than the appellant who was a monopolist. On appeal, this court followed the decision in 1959 Supp (2) SCR 227: (AIR 1959 SC 694 ) and AIR 1959 SC 896 and held that under the said G. O. the Government issued only administrative directions and that the failure of the Transport authorities to follow them would not entitle the respondents to a writ. As regards the two reasons given by the High Court, this Court came to the conclusion that they were not irrelevant consideration, but were considerations germane in the matter of issue of permits.In the result this Court allowed the appeal. This decision accepts two propositions, namely, (1) misconstruction or even disregard of the instructions, given by the Government does not confer a right upon an aggrieved party to file a writ, the said instructions are only administrative directions, and (2) the decision implies that if the Tribunal decides on irrelevant considerations, the Court can issue a writ. But in that case it came to the conclusion that no such irrelevant considerations weighed with the Tribunal.14. The last of the cases relied upon is that in Sankara Ayyer v. Narayanswami Naidu, Civil Appeal No. 213 of 1960 D/- 10-10-1960 (SC). There too, the Regional Transport Authority and the State Transport Appellate Tribunal considered the applications for the grant of a permit for a new route on the basis of the administrative directions given by the State Government. The Regional Transport Authority gave the appellant 3 marks on the basis that he was a small operator but the Appellate Tribunal came to the conclusion that he was not entitled to any marks as a small operator. A single Judge of the High Court set aside the order of the Appellate Tribunal on the ground that it misconstrued the directions contained in the Government Order relating to small operators. But a division Bench of that Court in Letters Patent appeal held, relying upon the earlier decision of this Court, that the said directions were only administrative in nature and that they did not confer any legal rights and in that view allowed the appeal. This Court again following the earlier decisions dismissed the appeal holding that by construing the administrative directions the Tribunal did not take irrelevant considerations in the matter of issue of permits. It is always a controversial question whether the issue of a permit to a small operator or to a big operator would be in the interest of the public and a Tribunal is certainly entitled to take either view.15. It will be seen from the aforesaid decisions that this Court only laid down that the instructions given under S. 43A of the Motor Vehicles Act were only administrative directions and that the infringement of those instructions by the Tribunal did not confer any right on a party to apply to a High Court for a writ under Art. 226 of the Constitution. In all those cases the Tribunal either ignored the instructions or misconstrued them, but nonetheless decided the question of issue of permits on considerations relevant under S. 47 of the Act. They are not authorities on the question whether a writ of certioraris would lie where a Tribunal had on an obviously wrong view of law refused to decide or wrongly decided on a consideration relevant under S. 47 of the Act, whether or not it was covered by the instructions given under S. 43A. For if on the basis of such an error of law, it refuses to decide a relevant question, the fact that the Government also issued instructions to the Tribunal to apply some objective standards in deciding such a question does not make the said question any the less a relevant consideration under S. 47 of the Act.16. That is the position in the present case. As we have already indicated on the basis of an error manifest on the record, namely, that a company cannot have a branch office on the "out in question, if it has another branch elsewhere, it refused to take into consideration a relevant fact namely, whether the respondent has an office on the said route. The High Court, therefore, was right in quashing the order of the Appellate Tribunal and giving an opportunity to the Tribunal to decide that question on merits.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]In the result this Court allowed the appeal. This decision accepts two propositions, namely, (1) misconstruction or even disregard of the instructions, given by the Government does not confer a right upon an aggrieved party to file a writ, the said instructions are only administrative directions, and (2) the decision implies that if the Tribunal decides on irrelevant considerations, the Court can issue a writ. But in that case it came to the conclusion that no such irrelevant considerations weighed with the Tribunal.14. The last of the cases relied upon is that in Sankara Ayyer v. Narayanswami Naidu, Civil Appeal No. 213 of 1960 D/- 10-10-1960 (SC). There too, the Regional Transport Authority and the State Transport Appellate Tribunal considered the applications for the grant of a permit for a new route on the basis of the administrative directions given by the State Government. The Regional Transport Authority gave the appellant 3 marks on the basis that he was a small operator but the Appellate Tribunal came to the conclusion that he was not entitled to any marks as a small operator. A single Judge of the High Court set aside the order of the Appellate Tribunal on the ground that it misconstrued the directions contained in the Government Order relating to small operators. But a division Bench of that Court in Letters Patent appeal held, relying upon the earlier decision of this Court, that the said directions were only administrative in nature and that they did not confer any legal rights and in that view allowed the appeal. This Court again following the earlier decisions dismissed the appeal holding that by construing the administrative directions the Tribunal did not take irrelevant considerations in the matter of issue of permits. It is always a controversial question whether the issue of a permit to a small operator or to a big operator would be in the interest of the public and a Tribunal is certainly entitled to take either view.15. It will be seen from the aforesaid decisions that this Court only laid down that the instructions given under S. 43A of the Motor Vehicles Act were only administrative directions and that the infringement of those instructions by the Tribunal did not confer any right on a party to apply to a High Court for a writ under Art. 226 of the Constitution. In all those cases the Tribunal either ignored the instructions or misconstrued them, but nonetheless decided the question of issue of permits on considerations relevant under S. 47 of the Act. They are not authorities on the question whether a writ of certioraris would lie where a Tribunal had on an obviously wrong view of law refused to decide or wrongly decided on a consideration relevant under S. 47 of the Act, whether or not it was covered by the instructions given under S. 43A. For if on the basis of such an error of law, it refuses to decide a relevant question, the fact that the Government also issued instructions to the Tribunal to apply some objective standards in deciding such a question does not make the said question any the less a relevant consideration under S. 47 of the Act.16. That is the position in the present case. As we have already indicated on the basis of an error manifest on the record, namely, that a company cannot have a branch office on the "out in question, if it has another branch elsewhere, it refused to take into consideration a relevant fact namely, whether the respondent has an office on the said route. The High Court, therefore, was right in quashing the order of the Appellate Tribunal and giving an opportunity to the Tribunal to decide that question on merits.