Case Note & Summary
The petitioners, fifteen travel agencies operating contract carriage buses in Maharashtra, challenged a circular dated 30.5.2009 issued by the Transport Commissioner, Maharashtra. The circular directed that contract carriage buses must obtain tourist vehicle permits under Section 88 of the Motor Vehicles Act, 1988, in addition to their existing contract carriage permits under Section 74. The petitioners argued that the circular was ultra vires the Act and the Maharashtra Motor Vehicles Rules, 1989, as it imposed a condition not found in the statute. The court examined the provisions of Sections 74 and 88 of the Motor Vehicles Act, 1988, and the relevant rules. It noted that Section 74 provides for the grant of contract carriage permits and Section 88 deals with tourist vehicle permits, but there is no requirement that a contract carriage must also obtain a tourist permit. The court held that the circular was beyond the powers of the Transport Commissioner and could not override the statutory scheme. The circular was quashed and set aside. The court also directed that any actions taken pursuant to the circular, including any pending prosecutions, would not be affected by the quashing of the circular, but the circular itself was struck down as ultra vires.
Headnote
A) Motor Vehicles Act - Contract Carriage Permits - Ultra Vires Circular - Section 74, Section 88, Motor Vehicles Act, 1988 - The court considered whether a circular requiring contract carriage buses to obtain tourist vehicle permits was beyond the powers of the Transport Commissioner. Held that the circular imposed conditions not found in the Act or Rules and was therefore ultra vires. (Paras 1-7) B) Delegated Legislation - Circular Cannot Override Statute - Section 74, Motor Vehicles Act, 1988 - The court held that a circular cannot impose additional requirements beyond those prescribed by the statute and the rules. The Transport Commissioner's circular was struck down as it sought to add a condition for a tourist permit which is not mandated by law. (Paras 5-7)
Issue of Consideration
Whether the circular dated 30.5.2009 issued by the Transport Commissioner, Maharashtra, requiring contract carriage buses to obtain tourist vehicle permits under Section 88 of the Motor Vehicles Act, 1988, is ultra vires the Act and the rules framed thereunder.
Final Decision
The court quashed and set aside the circular dated 30.5.2009, holding it ultra vires the Motor Vehicles Act, 1988. However, it clarified that any actions taken pursuant to the circular, including pending prosecutions, would not be affected by this order.
Law Points
- Ultra vires
- Delegated legislation
- Motor Vehicles Act
- 1988
- Section 74
- Section 88
- Contract carriage
- Tourist vehicle permit
- Circular cannot impose conditions beyond statute


