Case: Goverdhan Lal Dhawan Vs. State Of Bihar &amp; Others

States to enter into an inter-State agreement. In the same decision at Pages 483-484 the Court made the following observations in respect of inter-regional permits: "In the case of inter-regional permits an application under section 45 of the Act has to be made to the Regional Transport Authority of the region in which the major portion of the proposed route or area lies and in case the portion of the proposed route or area in each of the regions is approximately equal, to the Regional Transport Authority of the region in which it is proposed to keep the vehicle or vehicles. Then under section 63 of the Act a permit granted by the Regional Transport Authority of one region shall not be valid in any other region unless the permit is countersigned by the Regional Transport Authority of that other region. Section 63(3) of the Act makes the provisions of Chapter IV applicable relating to the grant, revocation and suspension of permits to the grant, revocation and suspension of countersignature of permits. The result is that sections 47 to 68 which occur in Chapter IV are therefore attracted in case of inter-regional permits. In view of the fact that section 47(3) of the Act is restricted in its field in or within the region, the provisions in terms do not become applicable to inter-regional permits. Section 68 of the Act contemplates rules and conditions subject to which and the extent to which, a permit shall be valid in another region within the State without countersignature. W e have not been shown any rules to that effect. The reasons which do not make section 47(3) applicable to inter-State permit apply proprio vigore to inter-regional permits. "It is significant that the Act does not contain any procedure for two or more Regional Transport Authorities entering into an agreement before an application for an inter-regional permit is granted. The only provision which provides for an agreement to be arrived at for purposes of countersignatures is the agreement between two or more States referred to in the first proviso to sub-section (3) of section 63 of the Act. An inter-State agreement of that nature can be arrived at only after following the procedure prescribed under sub-section (3-A) of section 63 of the Act which provides for the publication of the proposal to enter into an agreement between the concerned States in the official Gazette and calling for representations in connection therewith from the affected parties and also the publication of the time and place at which the proposal or any representation is received in connection therewith will be considered by the Government concerned. At that stage it is open to the parties who are affected by the proposal to make all representations which they wish to make including the representation that there is no necessity to introduce any more stage carriages on the inter-State routes in question. In one sense the procedure prescribed in sub-section (3-A) of section 63 of the Act takes the place of the procedure to be followed by a Regional Transport Authority while granting or counter-signing permits. If any State Government is of opinion that i n the case of inter-regional permits within its territory there should be a similar agreement between the Regional Transport Authorities concerned before granting any inter-regional permit, it may frame appropriate rules providing fur-publication of the proposal to enter into an agreement, inviting objections to the proposal and hearing objections and representations of the affected parties by the concerned Regional Transport Authorities before entering into any such agreement. In the absence of any such rules being there, it is open to the affected parties to raise the contention that there is no necessity to issue any additional inter-regional permit before the Regional Transport Authority to which application for the g rant of a permit is made as well as the Regional Transport Authority to which an application for counter-signature of the permit is made.In the instant case since there is no provision in the Act or in the Rules made by the State Government requiring the existence of such a prior agreement, it is difficult to hold that in the absence of such a prior agreement between the Regional Transport Authorities concerned an application for the grant of an inter-regional permit should not be taken up for consideration by a Regional Transport Authority which has the jurisdiction to grant it under section 45 of the Act. If a permit is issued by a Regional Transport Authority and it is not countersigned by the other Regional Transport Authority the permit will not be effective in the other region. What we have observed above is in accord with the decision of a Constitution Bench of this Court in M/s. Bundelkhand Motor Transport Company, Nowgaon v. Behari Lal Chaurasia and Another, [1966 ] 1 S.C.R. 485. In that case at Page 492 the Constitution Bench has observed thus: "Under s. 63 a permit granted by the Regional Trans port Authority of one region is not valid in any other region, unless the permit has been countersigned by the Regional Transport Authority of that other region. The clearest implication of this provision is that even an inter-regional permit when granted is valid for the region over which the Authority granting the permit has jurisdiction, and when it is countersigned by the Regional Transport Authority of the other region, the permit becomes valid for the entire rout e. We are unable to agree with counsel for the respondent that the permit has no validity whatever until it is countersigned by the Regional Transport Authority of the other region " 5. The North Bihar Regional Transport Authority has, therefore, jurisdiction to consider the applications for the grant of the inter-regional permits in question. After they are granted, it is open to the South Bihar Regional Transport Authority to consider whether they should be countersigned or not after following the prescribed procedure.The High Court was, therefore, right in dismissing the Writ Petition.

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

Explanation:
0[ds]5. The North Bihar Regional Transport Authority has, therefore, jurisdiction to consider the applications for the grant of thepermits in question. After they are granted, it is open to the South Bihar Regional Transport Authority to consider whether they should be countersigned or not after following the prescribed procedure.The High Court was, therefore, right in dismissing the Writ Petition.