A.P. STATE ROAD TRANSPORT CORPORATIONversusP.V. RAMAMOHAN CHOWDHARY AND ORS.

A             A.P. STATE ROAD TRANSPORT CORPORATION
                                           l'.

                P.V. RAMAMOHAN CHOWDHARY AND ORS.

                                FEBRUARY 18, 1992

B              [N. M. KASLIWAL AND K. RAMASWAMY, .IJ.]


          Motor Vehicles Act, 1939: Sections 68-C; 68-D and 68-E.

           State Transport Undertaking-Nationalisation scheme-Partial exemp-
C   tionfrom the operation of tile .1c/1emt'-Validity of-Partial excl11sio11 licld not
    violatire of Article 14.                                                             ----
          Modification of Scl1eml'--Powers of Governmell/ lo modify tire
    Jc'1en1l-(.'onditions ncccssai)· for aniending the schenic discussed.

D         Comtiturion of India. 1950: Article 14.

           In exercise of its power under section 68-D of the Motor Vehicle.
    Act, 1939 the Government of Andhra Pradesh approved a draft scheme
    framed under section 68-C relating to the route Anantapur to                         ~· ~
    Dhardmavaram via Mamillapalli. However, exemption was granted to
E   persons holding permit for the routes namely (a) Kodikonda to Anantapur
    via Dharmavaram; (b) RukkHpatnam to Anantapur via Dharmavaram;
    (c) Interstate route Virechal to Dharmavaram 1-ia Anantapur; (d) Anan-
    tapur lo Puttaparti 1·ia Dharmavaram aud the partial exemption of these
    routes from the scheme was upheld by the Andhra Pradesh High Court.
                                                                                                •
F   Thereafter, the respondents filed a writ petition in High Court for a
    direction for exemption from the operation ~if the scheme, and the High
    Court held that exclusion of the respondents was discriminatory. Accord-
    ingly it directed the State Govt. to consider the respondent's case and pass
    appropriate orders to accord exemption from the operation of the scheme.
G   Against the decision of the High Court the Andhra Pradesh State Road
    Transport Corporation tiled an appeal in this Court.

          It was contended on behalf of the respondents that since the State
    Government exempted four routes from the operation of the scheme they
    are entitled to parity and denial offends their right to equality under
H   Article 14 of the Constitution.
                                           830
                      A.P. ~l"r\TE l~O:\D Tl'T. CC)RP'°. 1: CllO\\/DllARY          831

             Allowing tlte appeal and setting aside the order of the High Court, . A
       this Court,

             HELD : I. Section 6X-C ol' the Motor Veb:cles Act, whose constitu-
       tional rnlidity can no longer be ~uestioned, gives power to the Slate
       Transport Undertaking to exclude the private operators completely or
       partially from an area or route or part thereof in the draft st•heme. It           B
       gives exclusive power lo olTer transport service in that area or route or
       part thereol'. [833H, 834A)

-J              2. The statute its.II' gives power to the Stale lo exercise d,iscretion
       for formulating a scheme for an area or route or part thereol' and neces-          C
       sarily has the elltcl ol' excluding the existing or potential private operators
       from the fields lo render transport service in that partially prohibited area
       etc. \\-'bile retaining similar private operators in other area. route or part
       thereof. The exclusion completely or partially is allowable under the
       statute it•elf and is writ large. The discretion need not necessarily be
       discriminatory. Section 68-C left the choice to the State Tran•port Under-         D
       taking and so discrimination in that sense is discernible from the section
---,   which itsell' authorises the State Tran•j>ort Undertaking, based on l'al'lual
       matrix. eliminate in its choice of a partial exclusion of prh ale operators
                                                                            1



       in an area or route or part tht'reof. Opportunit)' has been given to an
       allected party to file his or their objections and ol' a right of hearing before   E
       the State Govt. apprrwed ol' the drall scheme and publication thereof' in
       the gazette. The exercise ol' rlisc.-.tion by the State Transport Undertaking
       in its selecth•e application of partial prohibition i!ii controlled and regu-
       lated by the statute in Ss. 68-D and 68-E of the Act. [83~R-D)

             Ram Nath Vcnna v. Stale of Rajastlra11, [1963] 2 S.C.R. 152, referred        F
       lo.

              3. Giving primacy lo the contention of violation of Article 14 would
       be f'rnught with insidious ell'ect ol' upsetting the very scheme itse!f, since
       anyone of the existing or potential operators would always contend that he         G
       too is similarly situated "ith that ol' the exempted operators of' other area,
       route nr part thereof and unt-qual treat1nent has been n1eted out in tht'
       grunt of permit to offer transport sen·ice offending his right under A.rticle
       14. [834H, 835A)

             4. It is now settled law that e•·en on a partial overlapping apprO\·ed       H
    832                     SUPREME COURT REPORTS              [1992] 1 S.C.R.

A   scheme private operators have been totally prohibited to have corridor
    shelters and could no longer enter into the frozen area, route or part
    thereof and obtain permit to render transport· service to the travelling
    public. When that be so, the partial exclusion does not offend Article 14
    of the Constitution. (835-E]
B           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3362 of
    1979.

          From theJudgment and Order dated 3.10.1977 of the Andhra
    Pradesh High. Couri in Writ Petition No.
                                         .
                                             3348 of 1975.
                                                        .
c           A.S. Nambiar and B. Partha5arthy for the Appellants.

            T,V, S.N. Chari and G. Narasimhulu for the Respondents.

            The Judgment of the Court was delivered by
D
          K. ~AMY, J. This appeal by special leave arises against the
  judgment of the Division Bench of the Andhra Pradesh High Court dated
  October 3, 19n in Writ Petition No. 3343n5. The Govt. in exercise of           ~-·-
  power under s. 68-D in Chapter IVA of the Motor Vehicles Act, 1939
  approved a draft scheme framed under s. 68-C through G.O.M.S. No. 753,
E Home (Transport) Dept. dated June, 1975, published in the gazette on
  June 4, 1975, relating to the route Anantapur to Dharmavaram via Mamil-
   lapalli. The Scheme No. 82 of 1974 was questioned in Writ Petition No.
  3827n5 and the same was upheld by a single Judge on September 30, 1975
   and on appeal in Writ Appeal No. 80 of 1975 daied November 14, 1975,
F the Division Bench upheld the same. While approving the scheme the
   routes, namely: (1) Kodikonda to Anantapur via Dharmavaram, (2) Buk-
   kapatnam.io Anantapur via Dharmavaram, (3) Interstate route Virechal to
   Dharmavaram via Anantapur, (4) Anantapur to Puttaparti via Dhar-
   mavaram to the extent indicated in the note thereunder were exempted
   from the scheme. Thereby the partial exemption of these routes from the
G approved scheme· stood upheld. Thereafter the two respondents filed the
   writ petition challenging the self same scheme contending that the non-ex-
   emption oft~ routes-i,e;j{alyandrug to Pemapalli via Dharamavaram and
   Anantapur to Perur via Dharmavaram offend Act, 14 of the Constitution.
    The High Court upheld the contention and held that their exclusion is
H discriminatory. Accordingly the High Court directed that the case "worth
     A.P. SfATE ROAD TPT. CORPN. v. OIOWDHARY (RAMASWAMY, J.]          833

consideration in the case of exempted routes". The Govt. was directed to A
consider their case and to pass appropriate orders to accord exemption
from the scheme. Questioning the· correctness of the judgment, this appeal
has been filed.

       Under s. 68-C, where the State Transport Undertaking is of the
opinion that for the purpose of providing an efficient, adequate, economi- B
cal and properly coordmated road transport service, it is necessary in the
public interest that the road "transport services' in general or any particular
class of such service in relation to any area or route or portion thereof
should be run and operated by the State Transport Undertaking, "Whether
to the exclusion, complete or partial", of other persons or otherwise, the   c
State Transport Undertaking may prepare a scheme giving particulars of
the nature of the service proposed to be rendered, the area or route
proposed to be covered and such other particulars respecting thereto as
may be prescribed, and shall cause every such scheme to be published in
the Official Gazette and also in such other manner as the State Govern- D
ment may direct. The draft scheme accordingly was prepared on the
above routes and was published. Objections had been filed. In exercise
of the power under sub-s. 2 of s. 68-D the State Govt. after considering the
objections and giving opportunity to the objectors and the representatives
and also of the State Transport Undertaking approved the scheme and
excluded the aforesaid four routes. As stated earlier, the scheme was E
upheld by the High Court and became final. The question emerges
whether the non-exclusion of two transport operators, the respondehts
herein, offends Act, 14.

       The contention of Sri Narsamhulu, the learned counsel for the F
operators, is that the State Govt. having exempted four routes from the
scheme, the respondents too are entitled to parity of treatment and the
denial offends their right to equality guaranteed under Art.14 of the
Constitution. We find difficult to give our acceptance to this contention.
It is true, as disclosed in the counter affidavit filed by the State .Govt. in
the writ petition, before the High Court that inadequate transport facilities G
prevailing on those four routes and density of the population that need
transport service by the private operators induced the Govt. to give exemp-
tion and that the respondents also may be situated in the similar cir-
cumstances. But by the very language of s.68-C whose constitutional
validity can no longer be questioned, and was not in fact questioned, gives H
    834                      SUPREME COURT REPORTS                [1992) 1 S.C.R.

A power to the S.T.U. to exclude the private operators completely or partially
    from an area or route or part thereof in the draft scheme and given
    exclusive power to offer transport service in that area or route or part
    thereof. On approval the scheme has the effect of excluding the private
    operators from the field. The statute itself gives power to the State to
    exercise discretion for formulating a scheme for an area or route or part
B
    thereof and necessarily has the effect of excluding the existing or potential
    private operators from the field to render transport service in that partially
    prohibited area etc. whik retaining similar private operators in other area,
    route or part thereof. The exclusion completely or partially is allowable
    under the statute itself and is writ large. The discretion need not neces-        ·{
c   sarily be discriminatory. Sec. 68-C left the choice to the S.T.U. and so
    discrimination in that sense is discernible from s. 6SC which itself
    authorises.the S.T.U., based on factual matrix, eliminate in its choice of a
    partial exclusion of private operators in an area or route or part thereof.
    Opportunity has hcen given to an affected party to file his or their obiec-
D   tions and of a right of hearing before the State G0\1. approved of the draft
    scheme and publication thereof in the gazette. The exercise of discretion
    by the S.T.U. in its selective application of partial prohibition is controlled
    and regulated by the statute in Ss. 680 and 68E of the Act. In Ram Natlt
    Vemra v. State of Rajastlran, 11963) 2 SCR 152 at 160 one of the contentions
    raised was that out of five routes which were partially overlapping, three
E    routes have been taken over. Permits of the existing oojer.tors has been
    cancelled with respect lo the overlapping par! of the routes while in other
    two routes, the ohjectors were allowed lo ply even on the overlapping part
    hut they had hecn forbidden In pick up passengers on the overlapping part
     for a destination within the overlapping part. This latter method was
F    adopted lo make the permits ineffective for the o;erlapping part. The
     contention of the aggrieved persons was thal Ibey were discriminated. This       .4JI
     Court held thus:

           "We arc of the opinion that there is no force in it. Under s.68C, it
     is open to frame a scheme in which there is a partial exclusion of private
G    operators. Making the permits ineffective for the overlapping part only
     amounts to partial exclusion of the private operators from that route. In
     the circumstances an order making the permit ineffective for the overlap·
     ping part would be justified under s. 6SC." Giving primacy to the conten-
     tion of violation of Art. 14 would be fraught with insidious effects of
H    upsetting the very scheme itself, since anyone of the existing or potential
          A.P. STATE ROAD TPT. CORP?I<. 1·. CHOWDHARY [RAMASWAMY. J.J       835

     operators would always contend that he too is similarly situated with that A
     of the exempted operators of other area, route or part thereof and unequal
     treatment ha~ been meted out in the grant of permit to offer transport
     service offending his right under Art. 14. It is true that sub-s.2 of s.68-E,
     as stated by Shri Narsamhulu, that despite the approval of the scheme
     under sub-s.2 of s. 68-D, the State Govt. may, at any time, if it considers
     necessary in the public interest so to do, modify any scheme published B
     under s. 3 of s. 68-D of the Act after following the procedure prescribed
     therein. The exercise of that power would be de hors the approval granted
     under sub. s.2 of s. 68-D of the Act and published under suf>.s.3 of s. 68-D.
     The conditions precedent therein are the Govt. must objectively come to
                                                                                  c
     a finding that there exists necessity in public interest and that the approved
     scheme needs modification and that the Govt. considers that such necessity
     to be imperative to modify the scheme. The Govt. thereafter should follow
     the procedure prescribed under sub-s. 2 of s. 68-E as if it is a new scheme
     and pass appropriate orders in that regard. That too it would be only
     either on the initiative of the S.T.U. or on an application or representations D
     by the general public of the necessity, in public interest, to modify the
     scheme approved under sub-s. 2 of s. 68-D of that Act. It is not at the
.'   behest of the erstwhile holders of the permit, who have been completely
     or partially frozen to obtain permit afresh or intending fresh applications
     in this behalf. It is now settled law that even on a partial overlapping
     approved scheme private operators have been totally prohibited to have E
     corridor shelters and could no longer enter into the frozen area, route or.
     part thereof and obtain permit to render transport service to the travelling
     public. When that be so, the partial exclusion docs not offend Art. 14 of
     the Constitution. In fact the respondents did not question the validity of

~.   the scheme. Thus considered the approach and the reasoning of the High
     Court are clearly illegal. Accordingly the appeal is allowed and the F
     judgment of the High Court is set aside. The writ petition stands dis-
     missed. Ruic nisi discharged. But in the circumstances the parties arc left
     to bear their own costs.

     T.N.A.                                                    Appeal allowed.