Case Note & Summary
The dispute arose between a State Transport Undertaking and a private operator regarding the variation of a permit under the Motor Vehicles Act, 1939. The appellant, Pandiayan Roadways Corporation Ltd., challenged the decision of the Madras High Court that allowed the respondent, Thiru M.A. Egappan, to operate on a sector of a notified route from Madurai to Kumuli. The approved scheme published on June 30, 1976, excluded all operators except those listed in Annexure II, which did not include the respondent. The respondent had previously secured variations of his permit to operate on parts of the notified route but was not an existing operator at the time the scheme was published. The High Court ruled that Section 68-F(1-D) did not bar the variation application since it was not a new permit or renewal. However, the Supreme Court disagreed, emphasizing that the application for variation fell within the scope of Section 68-F(1-D), which aimed to freeze services on the route upon scheme publication. The court held that the respondent could not operate on the notified route as he was not included in the approved scheme. The appeal was allowed, and the respondent was directed not to operate his stage carriage on the sector in question, with no costs awarded.
Headnote
A) Motor Vehicles Act - Permit Variation - Application for variation of a permit cannot be treated as outside the mischief of Section 68-F(1-D) - Motor Vehicles Act, 1939, Section 68-F(1-D) - The court held that the application for variation of a permit, including any part of a route under a published scheme, falls within the restrictions of Section 68-F(1-D), which aims to freeze the number of services on such routes upon scheme publication (Paras 395E-H). B) Motor Vehicles Act - Approved Scheme - Respondent not entitled to operate on notified route due to exclusion in approved scheme - Motor Vehicles Act, 1939, Sections 68-C, 68-D, 68-FF - The court determined that the respondent was not protected under the approved scheme and could not operate on the notified route, as only specified operators were permitted (Paras 396B-C).
Issue of Consideration
Whether the respondent could be granted a variation of his permit to operate on a sector of a notified route under the Motor Vehicles Act, 1939.
Final Decision
The Supreme Court allowed the appeal, ruling that the respondent could not operate his stage carriage on the notified route as he was not included in the approved scheme. The court directed the respondent not to operate on the sector for which he obtained the variation of his permit.
Law Points
- Motor Vehicles Act
- 1939
- Section 68-F(1-D)
- permit variation
- approved scheme
- notified route
- exclusion of operators



