Case: Patiala Bus (Sirhind) Pvt. Ltd Vs. State Transport Appellate Tribunal Punjab &amp; Others

justified in granting two permits with two return trips on regular basis on the route in question only to the Patiala Bus Service (P) Ltd., Sirhind. Rather it would have been most fair if he had granted one permit with one return trip each to the Patiala Bus Service (P) Ltd. Sirhind the Malwa Transport Company (P) Ltd. Barnala. Accordingly the impugned order is liable to be modified to that extent.The appellant thereupon preferred a writ petition in the High Court of Punjab and Haryana challenging the validity of the order of the State Transport Appellate Tribunal in so far as it reversed the order of the State Transport Commissioner granting two stage carriage permits to the appellant and directed that one stage carriage permit should be granted to the third respondent. The writ petition was, however, summarily rejected by a Division Bench of the High Court and an application for leave to appeal to this Court preferred before the High Court met with the same fate. The appellant, thereupon, obtained special leave from this Court and hence the present appeal by special leave.3. The main ground on which the appellant assailed the order of the State Transport Appellate Tribunal taking away one stage carriage permit and granting it to the third respondent was that the State Transport Appellate Tribunal failed to take into account various relevant considerations which must necessarily weigh with the authority in determining which out of several applicants should be granted stage carriage permit. These consideration, contended the appellant, are set out in Section 47 and the authority entrusted with the task of selecting an applicant for grant of stage carriage permit must have regard to these considerations in performing its task of the State Transport Appellate Tribunal, however, ignored these considerations and gave one stage carriage permit each to the appellant and the third respondent as if it were a bounty to be divided equally between the two claimants. This was clearly in breach of Section 47 and it vitiated the order of the State. Transport Appellate Tribunal. We think there is great force in this contention of the appellant. Section 47 lays down that a Regional Transport Authority shall, in considering an applicant for stage carriage permit, have regard to the following matters, namely:(a) the interests of the public generally;(b) the advantages to the public of the service to be provided, including the saving of time likely to be effected thereby and any convenience arising from journeys not being broken;(c) the adequacy of other passenger transport services operating or likely to operate in the near future, whether by road or other means, between the places to be served;(d) the benefit to any particular locality or localities likely to be afforded by the service;(e) the operation by the applicant of other transport services, including those in respect of which applications from him for permits are pending;(f) the condition of the roads included in the proposed route or area.The main considerations required to be taken into account are the interest of the public in general and the advantages to the public of the service to be provided, and these would include inter alia consideration of factors such as the experience of the rival claimants, their past performance, the availability of stand-by vehicles with them, their financial resources, the facility of well equipped workshop possessed by them etc. The State Transport Appellate Tribunal, however, failed to take into account any of these considerations and proceeded as if the stage carriage permits were a largesse to be divided fairly and equitably amongst the rival claimants. We do not find in the order of the State Transport Appellate Tribunal and discussion of the question as to what the interest of the public in general requires and who from amongst the rival claimants would be able to provide the most efficient and satisfactory service to the public. None of the relevant factors is considered, or even adverted to, by the State Transport Appellate Tribunal. The State Transport Appellate Tribunal merely seems to have considered what would be fair as between the appellant and the third respondent, but what does the interest of the public, which is to be provided with an efficient and satisfactory service, demand. The order of the State Transport Appellate Tribunal, therefore, suffered from an infirmity, in that it failed to take into account relevant considerations and proceeded on the basis of an irrelevant consideration. We must, in the circumstances, quash and set aside the order of the State Transport Appellate Tribunal in so far as it directed that one stage carriage permit with a return trip should be granted to each of the appellant and the third respondent. But while doing so we cannot allow the order of the State Transport Commissioner granting two stage carriage permits to the appellant to remain outstanding. The order of the State Transport Commissioner also suffers from the same infirmity as the order of the State Transport Appellate Tribunal. It does not take into account any of the relevant considerations which we have discussed above, but merely proceeds on the basis that two stage carriage permits should be granted to the appellant as the appellant has already been operating that mileage under two temporary stage carriage permits held by it. Now it is undoubtedly true that the fact that an appellant has already been operating on a route is a relevant consideration to be taken into account, but that cannot be the sole determining consideration. The order of the State Transport Commissioner granting two stage carriage permits to the appellant must also, therefore, be quashed and set aside and the matter should be remanded to the State Transport Commissioner for determining, having regard to the relevant considerations, as to how the two stage carriage permits should be granted: whether both should be granted to the appellant or both should be granted to the third respondent, or one should be granted to the appellant and the other to the third respondent.

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

Explanation:
1[ds]3. The main ground on which the appellant assailed the order of the State Transport Appellate Tribunal taking away one stage carriage permit and granting it to the third respondent was that the State Transport Appellate Tribunal failed to take into account various relevant considerations which must necessarily weigh with the authority in determining which out of several applicants should be granted stage carriage permit. These consideration, contended the appellant, are set out in Section 47 and the authority entrusted with the task of selecting an applicant for grant of stage carriage permit must have regard to these considerations in performing its task of the State Transport Appellate Tribunal, however, ignored these considerations and gave one stage carriage permit each to the appellant and the third respondent as if it were a bounty to be divided equally between the two claimants. This was clearly in breach of Section 47 and it vitiated the order of the State. Transport Appellate Tribunal. We think there is great force in this contention of the appellant. Section 47 lays down that a Regional Transport Authority shall, in considering an applicant for stage carriage permit, have regard to the following matters, namely:(a) the interests of the public generally;(b) the advantages to the public of the service to be provided, including the saving of time likely to be effected thereby and any convenience arising from journeys not being broken;(c) the adequacy of other passenger transport services operating or likely to operate in the near future, whether by road or other means, between the places to be served;(d) the benefit to any particular locality or localities likely to be afforded by the service;(e) the operation by the applicant of other transport services, including those in respect of which applications from him for permits are pending;(f) the condition of the roads included in the proposed route or area.The main considerations required to be taken into account are the interest of the public in general and the advantages to the public of the service to be provided, and these would include inter alia consideration of factors such as the experience of the rival claimants, their past performance, the availability ofvehicles with them, their financial resources, the facility of well equipped workshop possessed by them etc. The State Transport Appellate Tribunal, however, failed to take into account any of these considerations and proceeded as if the stage carriage permits were a largesse to be divided fairly and equitably amongst the rival claimants. We do not find in the order of the State Transport Appellate Tribunal and discussion of the question as to what the interest of the public in general requires and who from amongst the rival claimants would be able to provide the most efficient and satisfactory service to the public. None of the relevant factors is considered, or even adverted to, by the State Transport Appellate Tribunal. The State Transport Appellate Tribunal merely seems to have considered what would be fair as between the appellant and the third respondent, but what does the interest of the public, which is to be provided with an efficient and satisfactory service, demand. The order of the State Transport Appellate Tribunal, therefore, suffered from an infirmity, in that it failed to take into account relevant considerations and proceeded on the basis of an irrelevant consideration. We must, in the circumstances, quash and set aside the order of the State Transport Appellate Tribunal in so far as it directed that one stage carriage permit with a return trip should be granted to each of the appellant and the third respondent. But while doing so we cannot allow the order of the State Transport Commissioner granting two stage carriage permits to the appellant to remain outstanding. The order of the State Transport Commissioner also suffers from the same infirmity as the order of the State Transport Appellate Tribunal. It does not take into account any of the relevant considerations which we have discussed above, but merely proceeds on the basis that two stage carriage permits should be granted to the appellant as the appellant has already been operating that mileage under two temporary stage carriage permits held by it. Now it is undoubtedly true that the fact that an appellant has already been operating on a route is a relevant consideration to be taken into account, but that cannot be the sole determining consideration. The order of the State Transport Commissioner granting two stage carriage permits to the appellant must also, therefore, be quashed and set aside and the matter should be remanded to the State Transport Commissioner for determining, having regard to the relevant considerations, as to how the two stage carriage permits should be granted: whether both should be granted to the appellant or both should be granted to the third respondent, or one should be granted to the appellant and the other to the third respondent.