Jaipur Purchoon Transport Union vs. State Of Rajasthan
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The petitioners, Jaipur Purchoon Transport Union and its president, challenged the Rajasthan Transportation of Merchandise Goods in Stage Carriage and Contract Carriage Buses Scheme, 2022, introduced by the State Government via a notification dated July 27, 2022. The Scheme was framed under Section 67(3) of the Motor Vehicles Act, 1988, and aimed to regulate the transportation of merchandise goods in stage and contract carriage buses. The petitioners argued that the Scheme was illegal and ultra-vires the Motor Vehicles Act, 1988, and also contended it violated Article 19(1)(g) of the Constitution of India by affecting the rights of goods carriage operators. The State Government defended the Scheme, asserting it was framed with due authority and in consonance with the objects of Section 67(3) of the Act, supported by amendments to the Rajasthan Motor Vehicle Rules, 1990.
Held
The Court held that the State Government had the authority under Section 67(3) of the Motor Vehicles Act, 1988, to formulate the Scheme of 2022. It clarified that Section 67(2) specifically deals with fixing fares and freight for stage and contract carriage buses, while Section 67(3) empowers the State Government to make schemes for the transportation of goods and passengers and to modify permits and issue licenses under such schemes for the promotion of development and efficiency. Therefore, there was no impediment in Section 67(3) preventing the State from issuing schemes regulating the carrying of merchandise goods in these buses. The Court found that the Scheme had a nexus with the objects of Section 67(3) and that the amendments to the Rajasthan Motor Vehicle Rules, 1990, along with the checks and balances within the Scheme itself (e.g., weight limitations, proper packing, unobstructed access, designated passenger seats), ensured passenger comfort and safety. Consequently, the Court held that the Scheme was not arbitrary or inconsistent with the object of Section 67 and did not violate Article 19(1)(g) of the Constitution, as the permissible limits on merchandise carriage and the requirement for permits protected the rights of truck operators and helped curb GST evasion. The challenge to the Scheme was dismissed.
Key Issues
1. Whether the State Government has the power/authority under Section 67(3) of the Motor Vehicles Act, 1988, to formulate a scheme for the transportation of merchandise goods in stage carriage and contract carriage buses, or if such power exclusively rests with Section 67(2)? The petitioner argued that Section 67(3) was not the appropriate provision and that Section 67(2) exclusively governed directions regarding the use and fare/freight of such buses, rendering the Scheme devoid of valid authority. The respondent contended that Section 67(3) empowered the State to make schemes for the transportation of goods and passengers and issue licenses, thus validating the Scheme. 2. Whether the Scheme of 2022 has a nexus with the objects sought to be achieved by Section 67(3)(a) to (m) of the Motor Vehicles Act, 1988? The petitioner argued it did not. The respondent asserted it did. 3. Whether allowing the transportation of merchandise goods in stage and contract carriage buses is permissible and feasible, considering passenger safety, security, and comfort? The petitioner argued it was neither permissible nor feasible. The respondent argued that amendments to the rules and the Scheme itself incorporated checks and balances to ensure safety and comfort. 4. Whether the Scheme of 2022 is violative of Article 19(1)(g) of the Constitution of India by affecting the rights of goods carriage operators? The petitioner argued it was violative. The respondent argued that the limitations imposed by the Scheme protected the rights of truck operators.
Sections Cited
Section 67(3), Section 67(2), Article 19(1)(g), Rule 5.21, Rule 5.22, Rule 2.18A
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 04/10/2023
The present petition is filed with the following prayers:- “i) by an appropriate, writ order or direction the notification dated 27/07/2022, and the Scheme framed by the State Government, called The Rajasthan Transportation of Merchandise Goods in Stage Carriage and Contract Carriage Buses Scheme, 2022 (Annex. 1) be quashed and set aside and declared ultra-vires the provisions of Motor Vehicle Act, 1988. [2023:RJ-JP:27480-DB] (2 of 10) [CW-12353/2022] ii) by an appropriate, writ order or direction it be declared that the State Government has no power/authority conferred by Sub Section 3 of Section 67 of the Motor Vehicle Act, 1988 for making Scheme 2022 for Transportation of Merchandise Goods in Stage Carriage And Contract Carriages Buses. iii) Any other relief which the Hon’ble Court considers appropriate in the facts and circumstances of the case, may kindly be passed in favour of the petitioner. iv) Cost of the petition be awarded in favour of the petitioner.”
At the outset, it is noted that the instant petition is preferred by the elected president of the petitioner no.1-Jaipur Purchoon Transport Union, whose main objective is to protect and promote the interest(s) of the member transporters and represent their cause to the Government, if and when the need so arises.
It is submitted by the learned counsel for the petitioner that on 27.07.2022, a notification was issued by the Secretary, Regional Transport Authority/Transport and Road Safety Department, Government of Rajasthan, Jaipur whereby a scheme called-The Rajasthan Transportation of Merchandise Goods in Stage Carriage and Contract Carriage Buses Scheme, 2022 (hereinafter, Scheme of 2022) was introduced in exercise of the powers conferred by Section 67(3) of the Motor Vehicle Act, 1988. In consonance with the title, the Scheme of 2022 encapsulates the rules and/or procedure qua the transportation of merchandise goods in stage carriage and contract carriage buses.
Being aggrieved with the introduction of the Scheme of 2022, the petitioners preferred a representation before the respondent-State. However, when no action was taken on the said
[2023:RJ-JP:27480-DB] (3 of 10) [CW-12353/2022] representation, the petitioners filed the instant petition. Learned counsel has submitted that the Scheme of 2022 is wholly illegal and ultra-vires of the provisions of the Motor Vehicles Act, 1988 and therefore, the same deserves to be struck down. In support of the same, the following grounds of challenge were put forth:-
1 That a scheme for the transportation of merchandise goods in contract and stage carriage buses cannot be formulated by invoking the provisions of Section 67(3), as the exclusive juri iction to issue directions regarding the use and fare/freight of such contract and stage carriage buses rests with Section 67(2). Therefore, resultantly, the Scheme of 2022 has been issued devoid of any valid authority in law.
2 That the Scheme of 2022 has no nexus with the object sought to be achieved as per Clause (a) to (m) of Section 67(3) of the Motor Vehicle Act, 1988.
3 That owing to the safety, security and comfort of passengers travelling in contract and stage carriage buses, it is neither permissible nor feasible to allow the transportation of merchandise goods in the said vehicles.
4 That the Scheme of 2022 is violative of Article 19(1)(g) of the Constitution of India as it shall inadvertently affect the interests/rights of the goods carriage operators i.e. Truck Operators, to carry on their business/trade.
Per contra, learned counsel for the respondent-State has submitted that the Scheme of 2022 is in consonance with the nexus sought to be achieved by Section 67(3) of the Motor Vehicle Act, 1988, having been issued with the due authority of law.
[2023:RJ-JP:27480-DB] (4 of 10) [CW-12353/2022] Therefore, the challenge so made herein-above, deserves to be dismissed. In support of the above, learned counsel submitted that the Transport Department vide its draft notification dated 28.06.2021 invited objections as well as suggestions with regards to the Rajasthan Motor Vehicle (Amendment) Rules, 2021, thereby substituting the existing sub-rule (6) of Rule 5.21 and also Rule 5.22 of the Rajasthan Motor Vehicles Rules, 1990. Moreover, Rule 2.18A was also inserted before Rule 2.19 of the said Rules in the manner incorporated in the said notification dated 28.06.2021. By the incorporation of the said rules, due guidelines/procedures and checks/balances were introduced to render the Scheme of 2022 effective for implementation vide notification dated 27.07.2022. The amendments so made were in pursuance to the Declaration No. 445 made by the Chief Minister of Rajasthan in his budget speech for the Year 2021-2022. 6. Heard the arguments advanced by learned counsel for both the sides and scanned the record of the petition.
It is noted that by way of an amendment in the Rajasthan Motor Vehicle Rules, 2021, the following rules have been substituted and/or inserted, as noted herein-under:- “Rule 5.21(6) Where goods including carriage of general merchandise are carried in a stage carriage in addition to or in lieu of passenger, the goods shall be of such nature and shall be so packed and secured on the vehicle that no danger, inconvenience or discomfort is caused to any passenger, such number of seats may be specified in the permit which shall be kept free and unimpeded for the use of passenger and the access to the entrance to the exist from the vehicle required under Chapter VII of these rules shall be under unobstructed.”
[2023:RJ-JP:27480-DB] (5 of 10) [CW-12353/2022] “Rule 5. 22. Carriage of Goods on contract carriage – The Regional Transport Authority may authorize the use of contract carriage for the carriage of goods used for- (a) Special reasons on particular occasions and subject to condition and restrictions to be specified on the permit; (b) the carriage of the personal, office or household effects of a hirer or carriage of general merchandise in addition to or in lieu of passenger, if so authorized in the permit.” “Rule 2.18A. Necessity of Refresher Training Courses – Before renewal of driving license for transport vehicle applicant shall have to undergo two days refresher training course in a driving training institute established by the State Government or any driving training institute authorized by the Transport Commissioner for the purpose and the licensing authority shall renew the license only on presenting a certificate of the aforesaid refresher training course along with other formalities.”
Upon a perusal of the record, it is noted that the amendments as noted herein-above, were effected in pursuance to the Declaration No. 445 made by the Chief Minister of Rajasthan in his budget speech for the Year 2021-2022, in order to make the Scheme of 2022 effective for implementation vide notification dated 27.07.2022. Moreover, by way of Clause 7 of the said Scheme of 2022, the following general conditions have been prescribed:- i. That no hazardous goods or goods which may foul the interior of the vehicle or to render it insanitary shall be carried at any time. ii. That the weight of the merchandise goods shall not be more than ten percent of the registered laden weight of the vehicle and
[2023:RJ-JP:27480-DB] (6 of 10) [CW-12353/2022] the gross weight of the vehicle including laden luggage, passenger, driver and conductor shall not be more than the registered laden weight of the vehicle. iii. That in case of stage carriage buses, the transportation of merchandise goods shall be according to Rule 5.21 of the Rajasthan Motor Vehicle Rules, 1990. For ready reference, it is reproduced herein-under:- “Where goods including carriage of general merchandise are carried in a stage carriage in addition to or in lieu of passenger, the goods shall be of such nature and shall be so packed and secured on the vehicle that no danger, inconvenience or discomfort is caused to any passenger, such number of seats may be specified in the permit which shall be kept free and unimpeded for the use of passenger and the access to the entrance to the exist from the vehicle required under Chapter VII of these rules shall be under unobstructed.” iv. That no luggage shall be carried in such a way as to block any entrance or exit of the vehicle. v. That the luggage shall be of such nature and shall be so packed and secured on the vehicle that no danger, inconvenience or any discomfort is caused to any passenger. vi. That the transportation of merchandise goods shall be under E-way bill. vii. That as per 5.21(2) of the Rajasthan Motor Vehicle Rules, 1990, no luggage shall be carried on the roof-top of the vehicle.
Upon a holistic perusal of Section 67 of the Motor Vehicle Act 1988, it becomes abundantly clear that the titled provision empowers the State Government to control road transport within the geographical realms of the State. In doing so, Section 67(1) empowers the State Government to issue notifications to the State
[2023:RJ-JP:27480-DB] (7 of 10) [CW-12353/2022] and Regional Transport Authorities regarding the passenger’s convenience, economically competitive fares, prevention of overcrowding and road safety. Furthermore, Section 67(2) encapsulates the fixing of fares and freight for stage and contract carriage buses. It is made clear that the said sub-section (2) deals with the fixing of fares and freight for the said buses only and it would be inaccurate and improper to infer that the provision exclusively empowers itself to issue directions qua the usage and/or activity of stage carriage and contract carriage buses altogether. Lastly, Section 67(3) notwithstanding any other provisions formulated under the Act, empowers the State Government to modify the permits issued to operators as well as make schemes for the transportation of goods and passengers and issue licences under such schemes for the promotion of development and efficiency in transportation within the State, in the sectors/areas so provided therein. In essence, sub-section (3) empowers the State Government to formulate schemes for the facilitation of transportation within the State, as they deem fit and thereafter, in accordance with such schemes, also modify and/or alter the permits and licenses issued under it. Therefore, it is clear that no impediment has been casted within sub-section (3) which precludes the State Government from issuing any Schemes/regulations which prevent stage and contract carriage buses from carrying merchandise goods.
Therefore, it can inarguably be said that the formulation and issuance of the Scheme of 2022 was well within the domain and authority of the State Government. Furthermore, whilst issuing
[2023:RJ-JP:27480-DB] (8 of 10) [CW-12353/2022] the Scheme of 2022, the State Government, by way of modification to the Rajasthan Motor Vehicle Rules, 2021, as noted above, has incorporated certain elaborate checks and balances, which pave the way for an efficient and unhindered transportation of goods as well as passengers, without infringing upon the comfort of the passengers or the safety of the goods being transported therein. For illustrative purposes, some of the amendments so made in the Rajasthan Motor Vehicle Rules, 2021 ensure: a. That when general merchandise is carried in stage carriage buses in addition to or in lieu of passengers, the goods shall be adequately and properly packed/sealed in a manner, that the transportation of such goods therein, does not hinder with the comfort and ease of the passengers. b. That the general merchandise being transported shall not block the access to the entrance or exit of the bus for the passengers seated therein. In essence, the freeways/alley shall be kept vacant so as to ensure swift and unrestricted movement. c. That in the permits so issued by the concerned authorities for such transportation of merchandise goods in stage carriage buses, the seats to be exclusively utilized by passengers shall be clearly marked, in order to prevent an overlap, causing discomfort to the passengers.
Therefore, upon an harmonious reading of the amendments effectuated in Rajasthan Motor Vehicle Rules, 2021 for the effective implementation of the Scheme of 2022 with the checks and balances incorporated within the scheme itself (re: Clause 7),
[2023:RJ-JP:27480-DB] (9 of 10) [CW-12353/2022] as noted above, this Court deems it fit to hold that the Scheme of 2022 cannot be deemed arbitrary or inconsistent with the object of Section 67 of the Motor Vehicle Act, 1988, as having been issued with the due authority of law, as observed above. Furthermore, the contention of the petitioner that the Scheme of 2022 is violative of Article 19(1)(g) of the Constitution of cannot be countenanced for the following reasons:
1 That for the merchandise permitted to be carried/transported in the subject contract and carriage buses, it shall be ensured that only those goods wherein the weight of the merchandise goods is not more than ten percent of the registered laden weight of the vehicle, are carried therein.
2 That it shall further be ensured that the gross weight of the vehicle including the laden luggage, passengers, driver and conductor shall not be more than the registered laden weight of the vehicle. Hence, considering the checks and balances noted above, as prescribed within the Scheme of 2022 itself, it cannot be said that the rights of truck operators to carry on their trade shall be hindered, especially in light of the permissible limits imposed on the carriage of merchandise goods in such vehicles. Furthermore, by ensuring that the operators shall need permits/licenses to carry merchandise goods in the stage and contract carriage buses, which shall be granted subject to the deposition of a prescribed fee, the State Exchequer shall protect the revenue of the State by curbing the evasion of GST, which otherwise would go unchecked.
[2023:RJ-JP:27480-DB] (10 of 10) [CW-12353/2022]
Thus, taking note of the observations made herein-above, and considering that the Scheme of 2022 has been formulated with the due authority of the law in exercise of the powers prescribed under Section 67(3) of the Motor Vehicles Act, 1988; that elaborate checks and balances have been incorporated within the Scheme of 2022 to ensure swift carriage of merchandise goods within stage and contract carriage buses without impeding upon the comfort and ease of the passengers; that amendments effectuated in the Motor Vehicle Rules, 2021 render the Scheme of 2022 effective for the purpose of facilitating ease of transport within the State of Rajasthan and that no prejudice would be caused to the rights of the truck operators to carry on their trade as protected under Article 19(1)(g) of the Constitution of India, this Court deems it appropriate to hold that the challenge made to the Scheme of 2022 is devoid of merits.
As a result, the instant petition is dismissed. Pending applications, if any, stand disposed of. (SAMEER JAIN),J (AUGUSTINE GEORGE MASIH),CJ ANIL SHARMA /68
Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.