Holding

Any portion of a notified route, even if small or within a town/village, is an ‘overlap’ and, where a scheme provides total exclusion, a permit cannot be granted to private operators.

Summary

The Karnataka State Road Transport Corporation (KSRTC) challenged the grant of a stage‑carriage permit to private operators Ashrufulla Khan et al. for a route that overlapped a small portion of a notified route covered by a scheme of total exclusion prepared under Chapter IVA of the Motor Vehicles Act, 1939. The High Court’s Full Bench had held that such small portions within towns or villages constitute an ‘intersection’ and therefore a permit could be issued. The Supreme Court examined the statutory scheme, the meaning of ‘overlap’ and ‘intersection’, and held that any part of a notified route, however short, is an overlap, not an intersection, when a scheme provides total exclusion. Consequently, no permit can be granted to private operators for that portion. The Court set aside the High Court’s decision and remanded the matter for fresh consideration consistent with this view.

Issues considered

Whether a small portion of a notified route lying within the limits of a town or village is to be treated as an ‘overlap’ or an ‘intersection’ under Chapter IVA of the Motor Vehicles Act, 1939
Whether a private operator may be granted a stage‑carriage permit for such a portion despite a scheme of total exclusion

Legislation cited

Constitution of Indias. Article 226
Motor Vehicles Act, 1939s. 57(2), s. 68C, s. 68D, s. 68F, s. 68FF

Subjects

Motor Vehicles Actstate carriage route permitoverlap vs intersectiontotal exclusion schemepublic transport regulationArticle 226constitutional law

Judgment

A KARNATAKA STATE ROAD TRANSPORT CORPORATION
v.
ASHRUFULLA KHAN AND ORS.

JANUARY 14, 2002

B [V.N. KHARE AND ASHOK BHAN, JJ.)

Motor Vehicles Act, 1939:

Chapter IVA-Sections 68C, 68D-State carriage route permit-Grant
C of-Scheme totally excluding private operators from plying on notified route-
Existing operators whose permits overlap the notified portions to be rendered
ineffective for the overlapping portions-When private operators traverse on
the lines of notified route to continue journey on a non-notified route-Such
traversing on a notified route cannot be regarded as intersection-Also such
D overlapping cannot be sustained as it relates to small portion or portions
falling within the limits of a town or a village on a nationalised route.

'Intersection' and 'overlapping'-Distinction between-Explained

Constitution of India, 1950-Article 226-Powers of High Court to
E enforce Rule of law-Not to pass order or direction contrary to what has
been injuncted by law.

Words & Phrases :

Intersection-Meaning of in the context of Motor Vehicles Act, 1939.
F
Mysore State Transport Undertaking framed a scheme for exclusive
plying of its vehicles by the Undertaking on the routes falling within the
scheme. Scheme provided that the State Transport Undertaking shall operate
services on all the routes to the complete exclusion of private operators except
that the existing permit holders on the interstate route may continue to operate
G on such inter-State route, subject to condition that their permits shall be
rendered ineffective for the overlapping portions of the notified routes.
Transport Authority invited applications for grant of state carriage permit
on a particular route. Respondent No. 1 submitted an application for the same.
However, appellant-Corporation filed objection against the proposed grant of
H permits as the said route overlapped portions of the notified route falling within
194
KARNATAKA STATE ROAD TPT. CORPN. v. ASHRUFULLA KHAN 195
the Scheme. The objection was overruled. Appellant-Corporation was A
successful before the Tribunal and Single Judge of the High Court, but was
.,, unsuccessful before the Tribunal when the matter was remanded to it by the
Division Bench after the Full Bench gave its opinion.

Allowing the appeals, the Court
B
HELD: 1.1. The object and scheme behind Chapter IVA of the Motor
Vehicles Act, 1939 make it clear that once a scheme for total exclusion of
private operators for a route formulated by a State Transport Undertaking is
approved by the government and is published in the official gazette, no permit
can be granted to private operators other than the State Transport Undertaking
on a notified route or portion thereof except in terms of the scheme. c
(200-C-D)

Commissioner of Income Tax, Bangalore v. Venkateswara Hatcheries (P)
Ltd., (1999) 3 SCC 632 and Adarsh Travels Bus Service and Anr. v. State of
UP. & Ors., [1985) 4 SCC 557, followed.
D
C.P.C. Motor Service v. State of Mysore, [1962) Suppl. 1 SCR 717 and
Mysore State Road Transport Corporation v. Mysore State Transport Appellate
Tribunal, (1975) 1 SCR 615, relied on.

Webster's Dictionary, Vol-I; Black's Dictionary of Law, Fifth Edn.;
Chambers English Dictionary; The Law Lexicon Reprint Edn., (1987) and The E
Shorter Oxford English Dictionary, Vol. I, referred to.

1.2. There is a clear and obvious distinction between an 'overlapping'
and an 'intersection' for purposes of Chapter IVA of the Motor Vehicles Act,
1988. In the case of an overlapping a stage carriage is to ply on the same line
of travel on a portion of a notified route and it is immaterial whether it is a F
small distance of four or five kilometres falling within the limits of a village
or town. Whereas in the case of an intersection a non-notified route only cuts
across a notified route. The exceptions sought to be made by Full Bench in
the form of municipal limit or village limit is totally erroneous and that the
same defeats the very object behind the scheme which is for total exclusion of G
private operation. The consistent view of this Court has throughout been that
the scheme is a law and the same has to be preserved and protected in public
interest. Any other view taken contrary to the said view would amount to
violating the integrity ofan approved scheme under Section 68D of the Act.
Any slight deviation in the scheme may frustrate the entire Scheme.
Therefore, High Court under Article 226 of the Constitution is required to H
196 SUPREME COURT REPORTS [2002] I S.C.R.

A enfon:e Rule of Law and not pass order or direction which is contrary to what
has been injuncted by law. (206-C-D-E) ..
,.
1.3. Merely because a private operator has to traverse on the line of a
notified route for 5Km. or for 1.5 Km. only is no ground to dispense with the
mandate of law. Such an overlapping also cannot be sustained on the ground
B it relates to a small town. If such a view of law as propounded by the Full
Bench of the High Court is to be accepted, it is difficult to be applied where
a notified route passes through bigger towns where involvement is of IO to
20 km. within that town. [206-G-H; 207-A]

1.4. The view taken by the said Full Bench that where traversing on a
C notified route is necessary to continue journey on a non-notified route could
be regarded as an intersection, is an erroneous view of law. It is contrary to
the law which stood settled by this Court in Adarsh Travels case* that once a
scheme is for total exclusion prohibiting private operators from plying stage
carriages on a whole or part of a notified route, no permit can be granted on
D the notified route or portion thereof, and still holds the field and, therefore, it
deserves to be set aside. [207-B-C)

Adarsh Travels Bus Service and Anr. v. State of UP. & Ors., [1985) 4
sec 557, followed.
E H. C. Narayanappa v. State of Mysore, [1960) 3 SCR 742; Nehru Motor
Transport Co-operative Society v. State of Rajas than and Anr., [1964) l SCR
220; C.P.C. Motor Service v. State of Mysore, [1962) Suppl. l SCR 717;
Nilkanth Prasad v. State of Bihar, (1962) Suppl. l SCR 728; S. Abdul Khader
Saheb v. Mysore Revenue Appellate Tribunal, [1973) l SCC 357; Mysore State
Road Transport Corporation v. Mysore State Transport Appellate Tribunal,
F [1975) l SCR 615; Ram Sanehi Singh v. Bihar State Road Transport
Corporation, [1971) 3 SCC 797 and Mysore State Transport Corporation v.
Mysore Revenue Appellate Tribunal, [1975) l SCR 493, referred to.

2. The need and convenience of the travelling public is of paramount
G consideration under the Act. A situation may arise when the Transport
Undertaking may be found not catering to the needs of the travelling public.
In such a situation on representation of travelling public, the State
Undertaking or the Government, as the case may be, may consider the matter
and provide adequate transport services if it is required. In case the
Government finds that the Undertaking lacks vehicles or other infrastructure
H to provide an efficient and well coordinated transport services to the travelling
KARNATAKA STATE ROADTPT. CORPN.1•. ASHRUFULLAKHAN [V.N. KHARE, I.] 197

- public, it may modify the scheme as to permit private operator to ply vehicles
on such route or routes. In any case, it is always permissible to the legislature
to amend law by providing private operators to run an efficient and well
A

coordinated transport services on such route or routes on payment of adequate
royalty to the State Government. (207-C-D-EI

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1341 of 1990. B
From the Judgment and Order dated 16.11.88 of the Karnataka High
Court in W.A. No. 403of1988.

r
G.L. Sanghi, K.R. Nagaraja, N.D.B. Raju, Ms. Bharathi R., Ms. Rizwana
Parveen, M.R.V. Achar, G. Prabhakar, Ms. Kiran Suri, S.R. Bhat and Sanjay R. C
Hegde for the appearing parties.

The Judgment of the Court was delivered by

V. N. KHARE, J. In this group of appeals, the question that falls for our D
consideration is "whether small portion or portions falling within the limits of
towns or villages on a notified route under Chapter IV A of Motor Vehicles
Act, 1939, since repealed (hereinafter referred to as 'the Repealed Act'), are
to be treated as a route overlapping or intersection" ?

Learned counsel for the parties have addressed arguments only in Civil E
Appeal No. 1341/90 which substantially arises out of the judgment of the Full
Bench ofKarnataka High Court rendered in Writ Appeal No. 403/1988. Learned
counsel for the parties jointly prayed to examine the correctness of the
aforesaid judgment of the Full Bench and the decision in Civil Appeal No.
1341 /1990 would govern the fate of other cases. We accordingly notice the
facts which have given rise to Civil Appeal No. 1341/1990. F

As far back in the year 1966, the then Mysore State Transport
Undertaking (hereinafter referred to as the Undertaking) framed a scheme
under Section 68-C of the Repealed Act known as Kolar Pocket Scheme (in
short 'the Scheme'), for exclusive plying of the vehicle by the Undertaking G
on the routes falling within the Scheme. The erstwhile Mysore government,
after having considered the Scheme as proposed, and the representations
filed against the said Scheme, approved the Scheme under Section 680 of the
Repealed Act and the said approved Scheme was published in Government
Gazette dated January 10, 1968. The Scheme provided that the State Transport
Undertaking shall operate services on all the routes to the complete exclusion H
'(

198 SUPREME COURT REPORTS [2002] 1 S.C.R.

A of other private operators except that the existing permit holders on the inter-
State route may continue to operate on such inter-State route, subject to
..
conditions that their permits shall be rendered ineffective for the overlapping •
portions of the notified routes and that the existing operators whose permits
overlap the notified portions between Bagepalli to Chelur and Pathpatya
Cross only may continue to operate on such routes subject to conditions that
B their permits would be rendered ineffective for the overlapping portions.
However, in the years 1984-85, the Regional Transport Authority, Kolar invited
applications under Section 57(2) of the Repealed Act for grant of stage
carriage permit on route known as Kanumanahally to Bagarpet. Respondent
No. I herein, in response to the said invitation submitted an application for
c grant of stage carriage permit on the said route. The appellant herein - the
Kamataka State Road Transport Corporation, filed an objection against the
proposed grant of permits on the premise that the said route overlaps portions
of the notified route falling within the Kolar Pocket Scheme, from Kolar Gold
Field to Five Light Cross to an extent of 5 kilometer and Desihalli to Bagarpet
to an extent of 1.5 kilometer. It was urged before the Regional Transport
D Authority that the Scheme being of complete exclusion of private operators,
no permit could be granted on the said portion of the notified route. However,
it was contended on behalf of the respondent that overlapping two portions
of the notified route should be construed as intersection and not overlapping
and, therefore, the permit can be granted. The Regional Transport Authority,
E by its resolution dated 4.3.85 overruled the objections of the appellant herein
and granted stage carriage permit in favour of the respondent. Aggrieved
against the order of the Regional Transport Authority, the appellant filed an
appeal before the State Transport Appellate Tribunal, Bangalore. The Appellate
Tribunal, after having found that the Scheme being for total exclusion of the 'I'

private operators, no permit can be granted on the notified route or portion
F thereof, and in that view of the matter the appeal preferred by the appellant
was allowed and the grant of permit in favour of the respondent was set aside.
The respondent thereafter preferred a writ petition before the High Court of
Karnataka challenging the order of the Appellate Tribunal. The Learned Single
Judge of the High Court dismissed the writ petition. The respondent thereafter
G preferred a writ appeal before a Division Bench of the High Court. The
Division Bench, after hearing of the matter was of the view that the question
involved in the appeal required to be decided by a Full Bench. Consequently,
the question "whether small portion or portions falling within the limits of a
town or village on a nationalised route, are to be treated as a route overlapping
or intersection" was referred to a Full Bench of the High Court for its opinion.
H The Full Bench, by its opinion dated 21.7.88, answered the question as
KARNATAKA STATEROADTPT. CORPN.1•. ASHRUFULLA KHAN (V.N.KHARE,J.l 199
follows: A
"A small portion/portions falling within the limits of a town or a
village on a nationalised route (notified route) are to be treated as
only an intersection of the nationalised route and not as overlapping
and therefore, it is permissible to grant permit on the route."
B
The Full Bench accordingly remitted its opinion to the Division Bench of the
High Court. The Division Bench, in view of the opinion given by the Full
Bench allowed the writ appeal and set aside the judgment of the Learned
Single Judge and remanded the matter to the Appellate Tribunal for considering
the matter afresh in the light of the opinion given by the Full Bench. The
Appellate Tribunal, following the Full Bench decision dismissed the appeal C
preferred by the appellant. Consequently, the appellant has filed the appeal
by way of Special Leave Petition. It is in this way these matters have come
up before us.

Before we advert to the question which we are required to answer, it is D
necessary to notice the relevant law as regard the consequences which follow
·..,_ when a Scheme for total exclusion is prepared and finalised under Chapter IVA
of the Repealed Act as it stood when the Full Bench of the High Court
decided the matter and still continues to be a good law till date.

Every citizen in this country is entitled to carry on a business in E
transport for hire or reward. However, it is subject to the law enacted in
respect thereof. The Repealed Act regulated the business of plying of stage
carriages for carrying passengers. Chapter IV A of the Repealed Act also
provided for nationalisation of road transport services. Section 68-C falling in
Chapter IV A provided that the State Transport Undertaking may prepare a
Scheme for purpose of providing an efficient, adequate, economical and
properly coordinated road transport service to be run and operated by the
Undertaking in relation to an area or route or portion thereof. The Scheme so
proposed may be to the complete exclusion or partial, for other person. The
scheme so framed was required to be published in the official gazette as to
invite objections to the proposed Scheme from travelling public or the existing G
transport operators. Sub-section (I) of Section 68D provided that any person
already providing transport facilities on the proposed route by any means,
any association representing persons interested in providing road transport
facilities, any local authority or police authority within whose jurisdiction any
part of the area or route proposed to be covered by the scheme lies, may file
objections to the proposed Scheme before the State Government. Sub-section H
200 SUPREME COURT REPORTS (2002) I S.C.R.

A (2) of the Section 68D provided that the State Government after considering
the objections may approve or modify the scheme. Sub-section (3) of Section
68D further provided that the scheme as approved or modified, to be published
in the official gazette and on publication in the gazette, the Scheme shall
become final and shall thereafter be called the approved scheme. Section 68F
B empowered the Regional Transport Authority or the State Transport Authority,
as the case may be, to grant to the State Transport Undertaking the necessary
permit on its applying for the same in pursuance of an approved Scheme.
Section 68FF further provided that where a scheme has been published under
sub-section (3) of Section 68D in respect of any notified area or notified route,
the State Transport Authority or the Regional Transport Authority, as the . '
C case may, shall not grant any permit except in accordance with the provisions
of the Scheme. The consequences of an approved Scheme under Chapter IVA
was that if the Scheme was for total exclusion, no person other than the State
Transport Undertaking can operate on the notified route or area except as
provided in the scheme itself. Jn other words, after the approved scheme
under Chapter IVA came into force, which is for total exclusion, no permit can
D be granted to a private operator to operate his vehicle on any part or portion
on a notified area or route unless permitted by the terms of the Scheme itself.

It is not disputed that the present Scheme is for total exclusion of
private operators on the notified route or portion thereof. In H.C. Narayanappa
E v. State of Mysore, [1960] 3 SCR 742, a Constitution Bench of this Court held
that a scheme framed and approved under Chapter IV A of the Repealed Act
is a law within the meaning of Article 13 and 19(6) of the Constitution. It
excludes the private operators from notified routes or areas if it is for total
exclusion of private operators. In Nehru Motor Transport Co-operative Society
v. State of Rajasthan and Anr., [1964] l SCR 220, another Constitution Bench
·F of this Court held that once a Scheme was finally approved and published
in the gazette, it is a law and final. In C.P. C. Motor Service v. State of Mysore,
[ 1962] Suppl. I SCR 717, a Scheme prepared by the State Transport Undertaking
which was duly approved provided that the State Undertaking shall operate
services to the complete exclusion of other private operators - (i) on all the
G notified inter-district routes except in regard to the portions of inter-district
routes lying outside the limits of Mysore District and also (ii) over the entire
length of each of the inter-district route lying within the limits of Mysore
District. The private operators who, on the basis of perm its granted to them
were plying their vehicles on inter-district and on inter-State routes which
overlapped the Mysore District challenged the Scheme and argued that their
H permits should not be affected merely because parts of the routes were within
KARNATAKA STATE ROADTPT. CORPN.1•. ASHRUFULLA KHAN [V.N. KHARE,J.j 201
the Mysore District. It was also urged that since the tennini of their routes A
on which they were plying their vehicles were outside Mysore District, it
could not be held that any portion of their route had been taken over under
the aforesaid Scheme merely because it lay within the Mysore District. The
said contention was rejected by this Court and it was held that no private
operator could be allowed to ply his vehicle on the notified portions which
was within the Mysore District. In Nilkanth Prasadv. State of Bihar, [1962] B
Suppl. I SCR 728, this Court held thus:

"This means that even in those cases where the notified route and the
route applied for run over a common sector, the curtailment by virtue
of the notified scheme would be by excluding that portion of the route C
or, in other words, the 'road' common to both. The distinction between
'route' as the notional line and 'road' as the physical track disappears
in the working of Chapter IV A, because you cannot curtail the route
without curtailing a portion of the road, and the ruling of the Court
to which we have referred, would also show that even if the route was
different, the area at least would be the same. The ruling of the D
Judicial Committee cannot be made applicable to the Motor Vehicles
Act, particularly Chapter IV A, where the intention is to exclude private
operators completely from running over certain sectors or routes
vested in State Transport Undertakings. In our opinion, therefore, the
appellants were rightly held to be disentitled to run over those portions E
of their routes which were notified as part of the scheme. Those
portions cannot be said to be different routes, but must be regarded
as portions of the routes of the private operators, from which the
private operators stood excluded under Section 68F (2)( c) (iii) of the
Act."

In S. Abdul Khader Saheb v. Mysore Revenue Appellate Tribunal,
F
[1973] 1 SCC 357, it was held by this Court that once a scheme is for total
exclusion of operation of stage carriage services by operators other than the
State Transport Undertaking, the authorities cannot grant pennit under Chapter
IV of the Motor Vehicle Act on any portion of a notified route. In Mysore
State Road Transport Corporation v. Mysore State Transport Appellate G
Tribunal, [ 1975] 1 SCR 615, it was held that it is not pennissible to grant
pennit on a portion of a notified route which has an effect to ply a stage
carriage on the same line of the notified route excepting an intersection.

However, in Ram Sanehi Singh v. Bihar State Road Transport
Corporation, [1971] 3 sec 797, there was a slight shift from the established H
202 SUPREME COURT REPORTS (2002] I S.C.R.

A view of law in regard to the consequence of an approved Scheme under .,.
Chapter IV A. In the said case, a private operator had a permit on a route which
has overlapping of 5 miles on a notified route. On examination of the Scheme
this Court found that the Scheme does not show that the private operators
have been prohibited from plying their vehicles and, therefore, took a view
B that since the private operator has a corridor restriction of operation of 5 miles
on notified route, his permit to that extent of overlapping portion could be
said to be ineffective. In Mysore State Transport Corporation v. Mysore
Revenue Appellate Tribunal, [I 975] I SCR 493, it was held that a mere
physical overlapping of two routes - notified rout~ and inter-State route, is
not enough to exclude the private inter-State operators by any necessary
C implications. Such an exclusion must be made clear and unequivocal in the
Scheme.

Since there was a conflict between the two sets of decisions rendered
by this Court in Ram Sanehi Singh v. Bihar State Road Transport Corporation
(supra), Mysore State Road Transport Corporation v. Mysore State Transport
D Appellate Tribunal (supra) and Mysore State Transport Corporation v. Mysore
Revenue Appellate Tribunal (supra), the matter was referred to a Constitution
Bench <n' this Court. A Constitution Bench of this Court in Adarsh Travels
Bus-Service and Anr., v. State of UP. and Ors., [ 1985] 4 SCC 557 distinguished
the decision in Ram Sanehi Singh v. Bihar State Road Transport Corporation
E (supra) for having been decided on particular facts of its case but did not
approve it. However, the decision in Mysore State Transport Corporation v.
Mysore Revenue Appellate Tribunal (supra) was expressly not approved and
whereas the decision in Mysore State Road Transport Corporation v. Mysore
State Road Transport Appellate Tribunal (supra) was approved. The
Constitution Bench settled the law by laying down that once a Scheme is for
F total exclusion prohibiting private operators from plying stage carriages on a
whole or part of a notified route, no permit can be granted on the notified
route or portion thereof.

After adverting to the settled law, we shall now proceed to consider the
G question that falls for our consideration. Learned counsel for the appellant,
S/Shri G.L. Sanghi, Senior Advocate and K.R. Nagaraja, Advocate contended
that in view of the terms of the Scheme, grant of the permit for purpose of
plying on the same line of the portion of the notified route which falls within
the limits of town or village is overlapping and not an intersection. Learned
counsel for the respondent, Sh. N .D.B. Raju, Advocate supported the reasoning
H given in the judgment rendered by the Full Bench of Karnataka High Court.
'y

KARNATAKASTATEROADTPT. CORPN.1'. ASHRUFULLAKHAN [V.N. KHARE,J.l 203
Learned counsel for the parties heavily relied upon dictionary meaning A
of the expression 'intersection'.

In Webster's Dictionary Vol-I, the word 'intersection' means:- as the act
of inter-secting the point at which lines cut across each other (or the line at
which planes do so), a place where two roads cross each other in-ter-se-tion-
~ B
In Black's Dictionary of Law, Fifth Edn., the word 'intersection' means:-
as applied to a street or highway means the space occupied by two streets
at the point where they cross each other. Space common to both streets or
highways, formed by continuing the curb lines.
c
In Chambers English Dictionary, ' intersection' means to cut across' to
curt or cross mutually; to divide into parts, v.i. to cross each others -ns.
Intersect a point of intersection; intersection intersecting: the point or line in
which lines or surfaces cut each other (geom); the set of elements which two
or more sets have in common (math) : a cross-roads.
D
The Law Lexicon Reprint Edn. 1987 'intersect' means:- as to cross;
T literally, to cur into or between; a word which imports the intersection of one
line with another.

The Shorter Oxford English Dictionary Vol-I defines 'intersection' as the E
action or fact of intersection; the place where two things intersect; chiefly
geom, the point (or line) common to two lines or surfaces which interest 1559.

A reading of the aforesaid dictionary meanings of the word 'intersection'
shows that dictionary gives more than one meaning of the word 'intersection'.
The expression 'intersection' has not been defined in the Act. F
In Commissioner of Income Tax, Bangalore v. Venkateswara Hatcheries
{P) Ltd., [ 1999] 3 SCC 632, it was held thus:

"A reading of the aforesaid dictionary meanings of the word 'produce'
does indicate that if a living creature is brought forth, it can be said G
that it is produced. However, the dictionary gives more than one
meaning of the word 'produce'. Neither the word 'produce' nor the
word 'article has been defined in the Act. When the word is not so
defined in the Act, it may be permissible to refer to the dictionary to
find out the meaning of that word as it is understood in the common
parlance. But where the dictior.ary gives divergent or more than one H
204 SUPREME COURT REPORTS [2002] I S.C.R.

A meaning of a word, in that case it is not safe to construe the said word
according to the suggested dictionary meaning of that word. In such
a situation, the word has to be construed in the context of the
provisions of the Act and regard must also be had to the legislative
history of the provisions of the Act and the scheme of the Act."

B Following the decision in Commissioner of Income Tax, Bangalore,
(supra) we are, therefore, of the view that the expression 'intersection' has
to be understood in the light of the object and the Scheme behind Chapter
IV A of the Repealed Act.

The object and the Scheme behind Chapter IV A of the repealed Act
C being that once a Scheme for total exclusion of private operators for a route
formulated by a State Transport Undertaking is approved by the government
and is published in the official gazette, no permit can be granted to private
operators other than the State Transport Undertaking on a notified route or
portion thereof except in the terms of the Scheme. This Court in Adarsh
D Travels Service and Anr., v. State of UP. and Ors., (supra) while dealing with
Civil Appeal Nos.164-166 of 1982 even after finding that there was very
insignificant portion of the route on which the appellants held stage carriage
permits, was included in a notified route yet this Court rejected the contention
of the appellant. Similarly in C.P.C. Motor Service v. State of Mysore (supra),
the contention of the private operators who held permits on an inter State
E route which overlapped the Mysore District, that their permits should not be
cancelled merely because part of the route is within the Mysore District was
rejected. Th~ aforesaid view of this Court is in consonance with the object
and Scheme under Chapter IVA of the Repealed Act. We are, therefore, of the
view that the expression 'intersection' has to be understood in the light of
p the pronouncement of law by this Court in number of its decisions.

The expression 'intersection' has neither been employed in the Repealed
Act nor in the rules framed thereunder. But it is a product of the judgment
of this Court in Mysore State Road Transport Corporation v. Mysore State
Transport Appellate Tribunal (supra) and the relevant extract of the decision
G runs as under:

"This Court has consistently taken the view that ifthere is prohibition
to operate on a notified route or routes no licences can be granted
to any private operator whose route traversed or overlapped any part
or whose of that notified route. The intersection of the notified route
H may not, in our view, amount to traversing or overlapping the route
KARNATAKA STATE ROAD TPT. CORPN. "· ASHRUFULLA KHAN [V.N. KHARE, J.J 205

because the prohibition imposed applies to a whole or part of the A
route on the highway on the same line of the route. An intersection
cannot be said to be traversing the same line, as it cuts across it."

The said decision was approved in Constitution Bench decision in Adarsh
Travels Bus Service and Anr., v. State of UP. and Ors., (supra). This Court
in the said decision held thus: B

"The learned Judges, expressly dissented from the decision of Beg
and Chandrachud, JJ. In Mysore State Transport Corpn. v. Mysore
Revenue Appellate Tribunal and approved the decisions of the court
in Nilka11th Prasad case and Abdul Khader case. We agree with the C
view taken by this Court in Mysore State Road Transport Corpn. v.
Mysore State Transport Appellate Tribunal and dissent from the
view taken in Mysore State Road Transport Corpn. v. Mysore Revenue
Appellate Tribunal." (emphasis supplied)

A perusal of aforesaid extracts of two decisions referred to above D
shows two aspects: 1) the expression 'intersection' was employed in the
context of the settled law as regard the consequences of an approved Scheme
under Chapter IV A which provided for total exclusion of private operators on
the notified route or portion thereof and 2) while employing the expression
'intersection' in the said deci>ion this Court has explained what the expression E
'intersection' meant. Further this Court in the said decision in very clear tenns
indicated that in view of consistent view of this Court no permit can be
granted to operate on a notified route or portion thereof if a scheme prohibit
~ such operation by a private operator and the only exception is where a private
operator holding permit on non-notified route has to intersect a notified route.
This decision explained that an intersection of a notified route does not F
amount to traversing or overlapping the notified route because of the
prohibition contain in a scheme applies to a whole or part of the route on the
highway on the same line of the route. It was further clarified that an intersection
cuts across the notified route and does not permit traversing the same line
of travel on a notified route. The last line of the passage extracted from G
T
decision in Mysore State Transport Corpn. (supra) is very relevant and
explains what this Court meant by the expression 'intersection'. The meaning
assigned to it is that an intersection is not traversing the same line of travel
but it cuts across. In other words if the vehicle is to ply on the same line of
travel on a notified route it is an overlapping and if a non-notified route cuts
across a notified route for its onward journey it is an intersection. H
206 SUPREME COURT REPORTS [2002) I S.C.R.

A The expression 'intersection' has been employed by this Court only to
provide facility to a private operator operating on a non-notified route to
continue an onward journey if it cuts across a notified route. It appears that
this exception was carried out only to avoid hardships to the travelling public,
otherwise a Scheme which is for total exclusion of private operation was held
B to be untouchable.
In our opinion, there is a clear and obvious distinction between an
'overlapping' and an 'intersection' for purposes of Chapter IV A of the repealed
Act~ In the case of an overlapping a stage carriage is to ply on the same line
of travel on a portion of a notified route and it is immaterial whether it is a
C small distance of four or five kilometers falling within the limits of a village
or town. Whereas in the case of an intersection a non-notified route only cuts
across a notified route for onward journey. It is only to enable a private
operator plying on a non-notified route to a non-notified route to cut across
a notified route. The exceptions sought to be made by Full Bench in the form
of municipal limit or village limit is totally erroneous anJ that the same defeats
D the very object behind the scheme which is for total exclusion of private
operation. The consistent view of this Court has through out been that the
Scheme is a law and the same has to be preserved and protected in public
interest. Any other view taken contrary to the said view would amount to
violating the integrity of an approved scheme under Section 68D of the
E Repealed Act. Any slight deviation in the scheme may frustrate the entire
Scheme.
An example posed by the Full Bench in its judgment as to what happens
when an operator on a non-notified route has to cut across a notified route
by taking 'U' tum on a notified route and then taking left tum to enter on
F a non-notified route was not appropriate. In such a case, it may not amount
to overlapping. It would be only intersection. There may be a crossing where
there is an island in the centre and a private operator in order to go from non-
notified route to another non-notified route has to make a semi circle of a
notified route. In that case also, it would be not overlapping, but it would be
an intersection because it only cuts across the notified route because of size
G of crossing or traffic regulations.
Merely because a private operator has to traverse on the line of a
notified route for 5 km or for 1.5 km only is no ground to dispense with the
mandate of law. Such an overlapping also cannot be sustained on the ground
it relates to a small town. If such a view of law as propounded by the Full
H Bench is to be accepted, it is difficult to be applied where a notified route
'y

KARNATAKA STATE ROAD TPT. CORPN. 1-. ASHRUFULLA KHAN [V .N. KHARE. J.) 207
passes through bigger towns where involvement is of 10 to 20 km within that A
town.

The view taken by the full bench that where traversing on a notified
route is necessary to continue journey on a non-notified route could be
regarded as an intersection is an erroneous view oflaw. The High Court under
Article 226 of the Constitution is required to enforce rule of law and not pass B
order or direction which is contrary to what has been injuncted by law.

For the aforesaid reasons, we are of the view that the view taken by the
High Court was contrary to the law which stood settled by this Court in
Adarsh Travels case (supra) and still holds the field and, therefore, it deserves C
to be set aside.

Before we part with the case, we would like to observe that the need
and convenience of the travelling public is of paramount consideration under
the Act. A situation may arise when the Transport Undertaking may be found
not catering to the needs of the traveling public. In such a situation, on D
representation of travelling public, the State Undertaking or the Government,
as the case may be, may consider the matter and provide adequate transport
services if it is required. In case the Government finds that the Undertaking
lacks vehicles or other infrastructure to provide an efficient and well
coordinated transport services to the traveling public, it may modify the
scheme as to permit private operator to ply vehicles on such route or routes. E
In any case, it is always permissible to the legislature to amend law by
providing private operators to run an efficient and well coordinated transport
.. services on such route or routes on payment of adequate royalty to the State
Government.

For the aforesaid reasons, the judgments and order including State F
Transport Appellate Tribunal under appeal are set aside. The matters are sent
back to the Learned Single Judge of the High Court to decide the matters
within three months of production of certified copy of this judgment in the
light of what has been stated above. The appeals are allowed. There shall be
no order as to costs. G
N.J. Appeals allowed.