B.A.Linga Reddy Etc.Etc vs Karnataka State Transport Auth.& Ors

3. The Bellary Scheme was initially notified on 31.10.1962 by Karnataka State Road Transport Corporation, Bangalore, (for short 'KSRTC') under section 68C of the Motor Vehicles Act, 1939 (hereinafter referred to as 'the Act of 1939') by which it was proposed to operate stage carriage services on 86 routes in Bellary sector for the purpose of providing efficient, adequate, and economical road transport services. The Government approved the scheme and published it in the Gazette dated 18.4.1964. The scheme provided for operation of services by the State Transport Undertakings only and no exemption had been provided therein for operation of services by the State Transport Undertakings of other States and the existing inter-State private operators. The said Scheme was modified on 10.1.1980 under section 68E of the Act of 1939 providing for operation of services by permit-holders who had been granted permits by the Transport Authorities on the date of publication on the basis of inter-State agreements entered into by the Government of any other State provided that the operators on such route shall not be permitted to operate on the routes which overlap any portion of the notified routes. The Government further modified the approved scheme on 31.3.2000 under section 102(1) of the Act of 1988. A provision was made for operation of the services by permit- holders who had been granted permits to ply their vehicles on inter-State routes, with a condition not to pick up or set down the passengers on any portion of the routes overlapping the notified routes.

4. Thereafter, under section 102(2) of the Act of 1988, a proposal was published in the Gazette dated 26.10.2002 to modify the said Scheme. Objections and representations were invited. KSRTC also filed detailed objections with respect to the proposed modifications. Objections were heard. The impugned notification modifying the aforesaid scheme had been issued by the State Government permitting operation of services by permit- holders who had been granted permits to ply their vehicles on inter-State routes, inter-District routes and intra-District routes and operating their services after the publication of the modified schemes dated 10.1.1988 and 1.4.2000 and those permits operating on 1.4.2002 and whose routes were overlapping, the notified routes of the Bellary approved scheme with a direction not to pick up or set down passengers on any portion of the routes overlapping the notified routes except at bus-stands.

5. Similarly, Kollar Pocket Scheme was initially notified on 10.1.1968 and later on modified on 10.1.1980. The impugned modified scheme was published on 7.11.2003. Mysore, BTS, Kanakpura and Bangalore Schemes were initially notified on 17.11.1960, 16.1.1961, 24.12.1965 and 7.6.1980 respectively. The Mysore Scheme was earlier modified on 21.11.1987. The impugned notification modifying Mysore, Bangalore and BTS Schemes was issued on 31.5.2007. The impugned notification of Bangalore and Kanakpura Plans had been issued on 11.11.2003, modifying the scheme.

6. As against the proposed modifications, detailed objections had been filed contending that the State Transport Authorities have granted permits illegally time and again on the notified routes. The permits were issued in a mala fide manner, violation of law was committed repeatedly and such violations cannot be ratified by the State Government as providing efficient services to the public has always been the main objective of the State Transport Undertakings. The State Transport Undertakings are on a better footing to provide efficient, adequate economical and well-co- ordinated services to cater to the demand of travelling public as compared to the private operators. Permits granted illegally cannot be saved by the Government under the guise of modifying the scheme. There are number of private operators whose permits have been rejected and they had been discriminated against while others were granted illegal permits. They will also pray for grant of permits on the notified routes. If the illegal permits are saved, it would lead to several complications. Under section 102 of the M.V. Act, any modification to an approved scheme can only be made in public interest. The permits were not granted on the representation of the public. It is at the instance of the private operators, an exercise had been undertaken. The permit-holders are operating services on nationalised routes causing heavy financial losses to the Corporation. The saving of illegal permits will render the Scheme infructuous and its integrity will be diluted. The Corporation is fully equipped to meet any additional demand from the travelling public. It has taken utmost care to provide modern buses and to make its fleet environment friendly by controlling the smoke emission level of its vehicles. It has also framed the scheme of providing compensation to the passengers of the bus on behalf of the Corporation because of unfortunate accidents. Modern bus stands have been constructed with public amenities making huge investments and also issue free/concessional passes to the blind, physically challenged, Police and Press reporters. The Corporation is fully controlled by State and Central Government as such the proposed modification be dropped.

section (1) in the Official Gazette and in one of the newspapers in the regional languages circulating in the area in which it is proposed to be covered by such modification, together with the date, not being less than thirty days from such publication in the Official Gazette, and the time and place at which any representation received in this behalf will be heard by the State Government."

28. It is apparent that there is no consideration of the objections except mentioning the arguments of the rival parties. Objections both factual and legal have not been considered much less reasons assigned to overrule them. Even in brief, reasons have not been assigned indicating how objections are disposed of.

29. Situation is worse in the orders modifying other schemes. Thus, modification of the Schemes could not be said to be in accordance with the principles of natural justice in the absence of reasons so as to reach the conclusion that private operators are meeting the genuine demands of the public in excess of the service provided by the STOs., hence, it cannot be said to be sustainable.

41. Resultantly, the appeals being bereft of merits are hereby dismissed. Let State Government hear the objections, consider and decide the same in accordance with law by a reasoned order within 3 months. In the intervening period, the arrangement as directed by the High Court in the impugned order to continue.