All INDIA Motor Transport Congress vs. Union Of INDIA

Facts

The petitioners, including truck owner associations and individual truck owners, filed writ petitions challenging a notification dated December 16, 2020, issued by the Transport Department of the Government of Bihar. This notification imposed restrictions on intra-state and inter-state traffic for vehicles with 14 wheels or above. The petitioners argued that this notification violated constitutional provisions related to free trade and commerce. The respondents included various authorities from the State of Bihar and the Union of India, as well as the National Highway Authority of India. The core of the dispute revolved around the State's authority to impose such restrictions on national highways and their compliance with constitutional and statutory provisions.

Held

The Court held that the power under Section 115 of the Motor Vehicles Act, 1988, cannot be stated to be wider than Article 301 of the Constitution of India and cannot facilitate a ban on interstate traffic. The Court found that the impugned notification, by restricting vehicles with 14 wheels or above, went against the spirit of Article 301, which guarantees free trade, commerce, and intercourse. Regarding legislative competence, the Court ruled that the Union Government controls national highways, and the State, limited by territorial jurisdiction, lacks the competence to affect matters falling under the Union List. The notification was also found to be an unreasonable restriction under Article 19, failing the proportionality test. Furthermore, the Court determined that the State Government overstepped its authority under Section 115 by issuing the notification on an issue already addressed by the Central Government under Sections 58 and 110 of the Motor Vehicles Act. Consequently, the Court quashed the notification dated December 16, 2020, and all consequential actions. The Court also issued directions for the proper implementation of Chapter VIII of the Motor Vehicles Act, including ensuring sufficient traffic personnel, issuing directions on laden weight for bridges and roads, making weighbridges available, and displaying prescribed weight limits on road signs.

Key Issues

1. Whether the power under Section 115 of the Motor Vehicles Act, 1988, is wide enough to impose a complete ban on intra and inter-state traffic with vehicles having 14 wheels or above, and if this power is subject to Article 301 of the Constitution of India? - Petitioner's argument: Section 115 of the MV Act cannot override the constitutional guarantee of free trade and commerce under Article 301. The power under Section 115 cannot facilitate a ban on interstate traffic. - Revenue/State's argument: Not recorded. 2. Whether the State possesses the legislative competence to restrict the use of National Highways? - Petitioner's argument: The Union Government legislatively controls national highways. The State, limited by territorial jurisdiction, cannot affect entries in the Union List. The State lacks legislative competence to restrict movement on roads, even in the interest of public safety. - Revenue/State's argument: Not recorded. 3. Whether the impugned notification qualifies as a reasonable restriction under Article 19 of the Constitution of India? - Petitioner's argument: The notification fails the proportionality test, as there were alternate means to achieve the goal and the necessity analysis was not supported by cogent material. Therefore, it is not saved by reasonable restrictions under Article 19. - Revenue/State's argument: Not recorded. 4. Whether the State can issue directions on an issue upon which the Central Government has already legislated, in pursuance of public safety? - Petitioner's argument: The State Government overstepped its power under Section 115 by issuing the impugned notification, as the Central Government has already issued directions under Sections 58 and 110 of the Motor Vehicles Act regarding weight limits and vehicle specifications. The State must act without transgressing the division of powers.