Hazarimal - Appellant Versus Regional Transport Authority, Jaipur - Respondents

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1939 - Section 64(d) - Appeal against refusal to counter-sign permit - Express order of refusal essential.

Motor Vehicles Act, 1939 - Sections 63(2) and 58(1) - Counter-signature of permit - Period of validity - Power of Regional Transport Authority.

Motor Vehicles Act, 1939 - Sections 57(3) and 64 - Counter-signature without prescribed procedure - Validity - Effect.

Motor Vehicles Act, 1939 - Sections 63(2) and 58 - Counter-signature for shorter period - Deemed validity for full original period.

Issues for determination

• Whether an appeal under Section 64(d) of the Motor Vehicles Act was available to the applicants against the non-acceptance of their prayer for counter-signature.
• Whether the applications for writ should be dismissed on the ground that a suit for injunction was an open remedy.
• Whether the Regional Transport Authority had the power under Section 63 of the Motor Vehicles Act to counter-sign a permit for a period shorter than that for which it had been issued.
• What is the effect of a counter-signature made by the Regional Transport Authority without following the procedure provided by Section 57(3) of the Motor Vehicles Act.
• Whether a counter-signature made for a shorter period than the original permit is valid only for that shorter period or for the entire period of the original permit.

Ratio decidendi

• A right of appeal under Section 64(d) of the Motor Vehicles Act arises only when there is an express order of refusal by the Regional Transport Authority to counter-sign a permit, and mere non-acceptance of a prayer for counter-signature without an express order does not constitute a refusal for the purpose of appeal.
• A Regional Transport Authority, when counter-signing a permit under Section 63(2) of the Motor Vehicles Act, cannot counter-sign it for a period shorter than the minimum period of three years prescribed under Section 58(1), or for the entire period for which the permit was originally granted if that period is not more than three years.
• A counter-signature made by a Regional Transport Authority without following the procedure provided by Section 57(3) of the Motor Vehicles Act is not void, but is merely liable to be set aside by an appellate authority under Section 64 if an interested person appeals on the ground of material irregularity.
• If a Regional Transport Authority counter-signs a permit, it must be deemed to have counter-signed it for the entire period of the original permit (if not more than three years), and any attempt to impose a shorter period for the counter-signature must be ignored as being beyond its powers under Section 63(2) read with Section 58 of the Motor Vehicles Act.

Important points

• Held, an appeal under Section 64(d) of the Motor Vehicles Act requires an express order of refusal to counter-sign a permit, not mere inaction.
• Clarified, a writ petition under Article 226 is maintainable where an alternative remedy of suit would be ineffective due to permit expiry.
• Declared, a Regional Transport Authority cannot counter-sign a permit for a period shorter than the minimum three years or the original permit's duration.
• Held, a counter-signature made without following Section 57(3) procedure is not void but is liable to be set aside on appeal.
• Declared, a counter-signature for a shorter period than the original permit is deemed valid for the entire original permit period, ignoring the shorter period.

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