Case: Ramautar Lal Jain Vs. Maya Kaur &amp; 13 Ors

2. Ram Autar Lal Jain filed an application under Section 46 ofthe Motor Vehicles Act, 1939 hereinafter called the Act for grant of the stage carriage permit on the route Daltonganj to Mahuatanr in Bihar. Before the application could be disposed of by the Regional Transport Authority Ram Autar Lal Jain died on 1 June, 1964. Thereafter, Kamal Kumar Jain, the son of Ram Autar Lal Jain made an application to Regional Transport Authority stating that the application filed by his deceased father might be treated to be one on behalf of himself and on behalf of his two minor brothers. It was also stated in the application that Ram Autar Lal Jain had died leaving his sons as heirs. On 4 August, 1964 another application was filed by Kamal Kumar Jain praying that the application filed by the deceased father might be treated as the application of a firm called M/s. Ram Autar Lal Jain the appellant herein. It was stated there that the three sons and the widow of Ram Aitar Lal Jain carried on business in partnership under the name and style of M/s. Ram Autar Lal Jain. The minors were said to be admitted to the benefit of the partnership. On receipt of the application the matter was notified in the Bihar Gazette on 9 September, 1964 for the purpose of inviting objections, if any. No Objections were filed. On 24 July, 1965 the Transport, Authority passed an order granting a permit in favour of M/s. Ram Autar Lal Jain for the route.3. The Appeal Board of the State Transport Authority found that the application for permit had been made by Ram Autar Lal Jain and that Chotanagpur Regional Transport Authority had no jurisdiction to grant permit in favour of the appellant. The appellant preferred an appeal to the Minister. The Minister upheld the view of the Appeal Board and dismissed the appeal.4. The appellant in an application under Article 226 and 227 of the Constitution asked for a writ of certiorari to quash the orders of the Appeal Board of the State Transport Authority, Patna and of the Minister of Transport, Government of Bihar, Patna.5. The question which was raised before the High Court was whether the Appeal Board erred in holding that the firm was a different entity from the heirs of Ram Autar Lal Jain. It was said by the Appeal Board that the firm could not be equated with the legal representative of the deceased. The High Court held that on the facts it was not possible to hold that the Appeal Board was in error in holding that the firm was a different entity.

Reasoning:
11. In the case of death of an applicant for the grant of a stage carriage permit before the grant of a permit the heirs can apply for substitution in place of the original applicant. There is no legal right to the grant of permit. The Regional Transport Authority has jurisdiction and discretion in the matter of allowing or refusing substitution.12. If the proceedings are likely to be delayed or a substitution will be detrimental to the interest of the public, the Regional Transport Authority is not bound to allow substitution. There is jurisdiction to grant or allow or refuse substitution. The Regional Transport Authority will exercise discretion in a judicious manner in the facts and circumstances of each case as to whether a substitution may be allowed.In the present case, the application of the firm for permission to continue the proceedings after the death of Ram Autar Lal Jain was notified in the Gazette. Objections were invited. No objections were filed by any one. The Regional Transport Authority granted the permit in the name of the firm. The Appeal Board held that Regional Transport Authority had no jurisdiction to grant permit in favour of the appellant. The Regional Transport Authority acted within jurisdiction in allowing substitution. There was no jurisdictional error of the Regional Transport Authority. It is a different matter whether the order was justified on merits. The Appeal Board and the Minister did not consider whether the order of the Regional Transport Authority was justified on the merits of the case but merely held that the order was without jurisdiction.15. The decision of the Appeal Board as well as of the Minister was wrong in holding that the Regional Transport Authority had acted beyond jurisdiction.This Court in Dhani Devi v. Sant Bihar, (1969) 2 SCR 567 = (AIR 1970 SC 759  ) held that in the case of death of an applicant before the final disposal of his application for the grant of permit in respect of his vehicle the Regional Transport Authority has power to substitute the person succeeding to the possession of the vehicles in place of the deceased applicant and to allow the successor to prosecute the application. The ratio of the decision is that as the relief sought for in the application is dependent upon and related to the possession of the vehicles the application is capable of being revived at the instance of the person succeeding to the possession of the vehicles.In the case of death of an applicant for the grant of a stage carriage permit before the grant of a permit the heirs can apply for substitution in place of the original applicant. There is no legal right to the grant of permit. The Regional Transport Authority has jurisdiction and discretion in the matter of allowing or refusing substitution.12. If the proceedings are likely to be delayed or a substitution will be detrimental to the interest of the public, the Regional Transport Authority is not bound to allow substitution. There is jurisdiction to grant or allow or refuse substitution. The Regional Transport Authority will exercise discretion in a judicious manner in the facts and circumstances of each case as to whether a substitution may be allowed.It appears that this Court in the unreported decision in M/s. Ram Autar Lal Jain case, Civil Appeal No. 2606 of 1969, D/= (now reported in AIR 1974 SC 326  ) (supra) found that the absence of possession of a vehicle by the successor of the applicant was a proper exercise of discretion by the authorities on the facts of that case.14.In the present case, the application of the firm for permission to continue the proceedings after the death of Ram Autar Lal Jain was notified in the Gazette. Objections were invited. No objections were filed by any one. The Regional Transport Authority granted the permit in the name of the firm. The Appeal Board held that Regional Transport Authority had no jurisdiction to grant permit in favour of the appellant. The Regional Transport Authority acted within jurisdiction in allowing substitution. There was no jurisdictional error of the Regional Transport Authority. It is a different matter whether the order was justified on merits. The Appeal Board and the Minister did not consider whether the order of the Regional Transport Authority was justified on the merits of the case but merely held that the order was without jurisdiction.15. The decision of the Appeal Board as well as of the Minister was wrong in holding that the Regional Transport Authority had acted beyond jurisdiction.