Government Of NCT Of Delhi & Ors. Versus Roppen Transportation Services Pvt. Ltd. & Ors.

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Aggregators — Two-wheelers — Interim Stay on Prohibition — Policy Formulation

Motor Vehicles Act, 1988 — Aggregators — Licensing — Two-wheelers for Hire or Reward

Constitutional Law — Legislative Competence — Motor Vehicles Act, 1988 — Aggregator Licensing

Interim Relief — Statutory Provisions — Public Interest — Livelihood Concerns

Precedent — Aggregator Licensing — Section 93 Motor Vehicles Act, 1988

Precedent — Distinguishing Features — Two-wheeler Prohibition

Issues for determination

• Whether the interim orders passed by the Delhi High Court, permitting two-wheelers to ply for carrying passengers under an aggregator regime, ought to be sustained.
• Whether aggregators can operate two-wheelers for hire or reward without obtaining a license under Section 93 of the Motor Vehicles Act, 1988.
• Whether the Delhi Government has the legislative competence to prescribe conditions for obtaining a license as an aggregator under Section 93 of the Motor Vehicles Act, 1988.

Ratio decidendi

• Interim orders staying a public notice that prohibits two-wheeler aggregators from operating without a statutory regime (policy/license) ought not to be passed, particularly when the government is actively formulating such a policy.
• The operation of two-wheeler aggregators for hire or reward without a proper license under Section 93 of the Motor Vehicles Act, 1988, is impermissible, attracting penal provisions.
• The State Government possesses the legislative competence to prescribe conditions for obtaining a license as an aggregator, as stipulated in Section 93 of the Motor Vehicles Act, 1988.
• The potential suffering of a large number of two-wheeler owners due to a public notice prohibiting their operation as aggregators cannot, by itself, justify suspending the operation of prima facie statutory provisions.
• Previous Supreme Court judgments concerning aggregators (Uber India Systems Pvt. Ltd. and Roppen Transportation Services Pvt. Ltd.) did not establish that aggregators could operate without a license under Section 93 of the Motor Vehicles Act, 1988.
• The specific public notice prohibiting two-wheelers for hire or reward in Delhi constitutes a distinguishing factual feature compared to previous cases concerning aggregators, where the subject dispute was not confined to two-wheelers.

Important points

• Held: Interim orders of the Delhi High Court permitting two-wheeler aggregators to operate were permanently stayed.
• Clarified: Operation of two-wheeler aggregators for hire or reward without a license under Section 93 of the Motor Vehicles Act, 1988, is impermissible.
• Directed: Delhi Government to finalize its policy for two-wheeler aggregators by July 31, 2023.
• Directed: Applications for licenses/permits for two-wheelers under aggregators shall be dealt with expeditiously in a time-bound manner after policy formulation.
• Clarified: Supreme Court's observations in this order shall not bind the Delhi High Court in the final disposal of the writ petitions.