Motor-cycle taxis are a form of contract carriages and must be granted permit: Karnataka High Court
Motor vehicle taxis that provide transport services for hire or reward are well within the definition of “contract carriage” under the Motor Vehicles Act. A single-judge bench comprising of Justice BV Nagarathna while adjudicating the matter in Ani Technologies Pvt Ltd. V. State of Karnataka &amp; Ors. [WRIT APPEAL No.4010/2019 (MV)] dealt with the legality of two-wheeler motor vehicles functioning as taxis for a mutual reward. The petitioners in the above case sought a writ of mandamus from the Court in order to take necessary action to permit the registration of bike taxis so as to use them as transport vehicles. The petitioners also prayed for appropriate permits to be granted in respect of contract carriage permits as per the provisions of the Motor Vehicles Act, 1988, Central Motor Vehicles Rules, 1989, and Karnataka Motor Vehicles Rules, 1989. The respondents i.e., the State, were not accepting applications of the petitioners to seek the necessary permits. The petitioner also pointed out the importance, especially in times of a pandemic to include new forms of urban mobility such as e-rickshaws and bike-sharing in order to reduce delays and embrace digital technology online. The respondents stated that there were no rules that had been framed to permit motorcycle taxis as such and thus no permit could be granted to the petitioners. Upon considering the provisions of the Motor Vehicles Act; the Court stated that a motorcycle could be used for hire to carry one passenger as a pillion. Even as per the Central Government Notification such a motorcycle used for hire would, prima facie, come within the definition of contract carriage as defined under sub-section (7) of Section 2 of the MV Act, 1988, wherein a “contract carriage” means “a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether express or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorized by him in this behalf on a fixed or an agreed rate or sum.” The Court further held that the definition of contract carriage is an inclusive definition rather than an exhaustive one. The very fact that one passenger could be carried on pillion in a motorcycle taxi makes it fall under the purview of “contract carriage.”
 1 IN THE HIGH COURT OF KARNATAKA BENGALURU DATED THIS THE 05TH DAY OF APRIL 2021 THE HON’BLE MRS. JUSTICE B.V.NAGARATHNA THE HON’BLE MS. JUSTICE J.M.KHAZI WRIT APPEAL No.4010 2019STATE OF KARNATAKA THROUGH ITS SECRETARY VIDHANA SOUDHA BENGALURU 560 001. ADDITIONAL TRANSPORT COMMISSIONER AND SECRETARY STATE TRANSPORT AUTHORITY BANGALORE 1ST FLOOR TTMC BUILDING A BLOCK SHANTHINAGAR BANGALORE 560 027. THE COMMISSIONER ROAD TRANSPORT DEPARTMENT AND STATE TRANSPORT AUTHORITY 1ST FLOOR TTMC BUILDING A BLOCK SHANTINAGAR BANGALORE 560 027. WWW.LIVELAW.IN 2 KARNATAKA STATE TRANSPORT AUTHORITY THROUGH ITS SECRETARY 1ST FLOOR TTMC BUILDING A BLOCK SHANTINAGAR BANGALORE 560 027. UNION OF INDIA THROUGH PRINCIPAL SECRETARY THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS TRANSPORT BHAWAN I PARLIAMENT STREET NEW DELHI 110 001. ROPPEN TRANSPORTATION SERVICES PVT. LTD. REG. OFFICE AT: 3RD FLOOR SAI PRITHVI ARCADE MEGHA HILLS SRI RAMA COLONY MADHAPUR HYDERABAD TELAGANA 500 081. ALSO AT: 148. 5TH MAIN ROAD RAJIV GANDHI NAGAR SECTOR 7 HSR LAYOUT BENGALURU KARNATAKA 560 102. THROUGH ITS DIRECTOR MR. PAVAN KUMAR GUNTUPALLI. ... RESPONDENTS BY SMT. SHWETHA KRISHNAPPA AGA FOR R 1 TO R 4 SRI. MADANAN PILLAI R. CGC FOR R 5 SAHANA DEVANATHAN ADVOCATE FOR SRI LOMESH NIDUMURI ADVOCATE FOR R 6) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO a) PASS AN ORDER SETTING ASIDE THE FINAL ORDER DATED 12 09 2019 PASSED BY THE LEARNED SINGLE JUDGE OF THIS HON’BLE COURT IN WRIT PETITION NO.14485 2019 INSOFAR AS IT ERRONEOUSLY RECORDS THAT ALL THE GRIEVANCES OF THE APPELLANT WERE REDRESSED AND ETC. THIS APPEAL COMING ON FOR PRELIMINARY HEARING THIS DAY NAGARATHNA J. DELIVERED THE FOLLOWING: JUDGMENT Being aggrieved by the order of the learned single Judge dated 12 09 2019 passed in W.P.No.14485 2019 WWW.LIVELAW.IN 3 and order dated 14 11 2019 passed in R.P.No.516 2019 the petitioner has filed this appeal. 2. We have heard learned senior counsel for the writ petitioner appellant learned Additional Government Advocate for respondent Nos.1 to 4 learned Central Government Counsel for respondent No.5 and learned counsel for respondent No.6. Learned senior counsel appearing for the petitioner appellant herein drew our attention to the prayers sought in the writ petition. They read as under: Wherefore it is respectfully prayed that this Hon ble Court may graciously be pleased to: a) To issue a writ in the nature of mandamus or any other appropriate writ order or direction to the Respondent Nos.1 to 4 to take all action necessary to permit registration of bike taxies as transport vehicles and grant of appropriate Contract Carriage permits in terms of the Motor Vehicles Act 1988 Central Motor Vehicles Rules 1989 and Karnataka Motor Vehicles Rules 1989 Or in the Alternative: WWW.LIVELAW.IN 4 b) To issue a writ in the nature of mandamus or any other appropriate writ order or direction to the Respondent Nos.1 to 4 to sanction and implement a framework for bike taxis in view of S.O. 1248(E) dated 05.11.2004 annexed as ANNEXURE A issued by the Central Government whereby Motor cycle used for hire to carry one passenger on pillion..." has been added as a category of Transport vehicle c) To issue in the nature of mandamus or any other appropriate writ order or direction directing the Respondent Nos.1 to 4 to ensure that no motorcycles which are registered for personal use and not for use as transport vehicles are allowed to be operated as taxies in any form or manner d) Pass any other or further order as this Hon ble Court may be deem fit and proper in the facts and circumstances of the case." Appellant s appellant had filed the writ petition seeking a direction to respondent Nos.1 to 4 to take steps to issue necessary permits for running the business of bike taxis as transport vehicles and to grant appropriate permits in respect of contract carriage permits in respect of contract carriage WWW.LIVELAW.IN 5 permits as per the provisions of the Motor Vehicles Act 1988 Central Motor Vehicles Rules 1989 and Karnataka Motor Vehicles Rules 1989of the MV Act 1988 which defines contract carriage which is an inclusive definition and the power of the Central and State Government to control transport vehicles which also includes a contract carriage and the provisions dealing with application for contract carriage permit namely Section 73 of the MV Act 1988 the grant of contract carriage permit as per Section WWW.LIVELAW.IN 6 74 the conditions under which they may be granted as well as the waiver of conditions. That in the instant case permission is being sought for running a motorcycle taxi being a transport vehicle as per Annexure A Notification dated 05 11 2004 as the appellant is seeking permission to run a motorcycle contract carriage permit. In this context learned senior counsel drew our attention to Annexure G which is a letter dated 02 03 2019 addressed to the Transport Minister State of Karnataka with a copy to the Transport Commissioner and Chairman State Transport Authority Bengaluru. He submitted that there has been no response to the said request made by the appellant. Learned senior counsel submitted that the appellant would make one more application in accordance with the provisions of the MV Act 1988 and the applicable Rules for seeking a contract carriage permit in respect of motorcycle used for hire to carry one passenger on pillion on hire as per Entry under the column Transport Vehicles vide Notification dated 05 11 2004 which reads as under: "NOTIFICATIONS UNDER THE MOTOR VEHICLES ACT Under Section 41(4) Specification of Types of Motor Vehicles S.O.1248(E) dated 5 11 2004. In exercise of the powers conferred by sub section of section 41 of the Motor Vehicles Act 1988and in supersession of the notification of the Government of India in the erstwhile Ministry of Surface Transport No.S.O. 451(E) dated the 19th June 1992 the Central Government hereby specifies the types of motor vehicles as mentioned in column 1 and 2 of the Table below for the purposes of said sub sectionWWW.LIVELAW.IN 10 Non Transport Vehicles cycle with or personal use. ii)Mopeds and motorized exceeding 25cc). iii)Invalid carriage. iv)Three wheeled vehicles for personal use. v)Motor car. vi)Fork lift. fitted with equipment‟s like rig generator and power Tillers. x)Private service vehicle registered in the name of declared to be used by him solely for personal. xi)Camper van or trailer for private use. xii)Tow trucks Breakdown Van and Recovery Vehicles. Transport Vehicles i)Motor cycle with side car for carrying goods. ii)Motor cycle with trailer to carry goods iii)Motor cycle used for hire to carry one passenger on pillion and motorized cycle rickshaw for goods or passengers on hire. iv)Luxury cabs. Three wheeled vehicles for transport of vi)Goods carrier trucks or tankers or mail carriersxv)Animal ambulances. xvii)Cash vans. tenders snorked ladders auxiliary trailers and fire fighting xix)Articulated vehicles. 13. Therefore a motorcycle could be used for hire to carry one passenger as a pillion. Even as per the Central Government Notification such a motorcycle used for hire would prima facie come within the definition of contract carriage as defined under sub section of Section 2 of the MV Act 1988 wherein a "contract carriage" means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract whether express or implied for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorized by him in this behalf on a fixed or an agreed rate or sum. The definition of contract carriage is an WWW.LIVELAW.IN 12 inclusive definition which includes a maxi cab and a motor cab notwithstanding that separate fares are charged for its passengers. The definition of contract carriage is an inclusive definition and not an exhaustive one which would include even a motorcycle taxi which is to be used for hire or reward on which a passenger could be carried on pillion as it is categorized as a transport vehicle by issuance of notification by the Central Government under the provisions of the MV Act 1988. In this regard reference could also be made to sub section of Section 2 of the Act which defines a ‘motor vehicle’ or ‘vehicle’ which means mechanically propelled vehicle adapted for use upon roads which includes a Chassis and sub sectionof Section 2 which defines a ‘motorcycle’ which means a two wheeled motor vehicle inclusive of any detachable side car having an extra wheel attached to the motor vehicle. Insofar as contract carriages are concerned as per Chapter V of the MV Act 1988 necessity for permits is envisaged and Sections 73 and 74 deal with the application for contract carriage permit and the grant of contract carriage permit subject to certain terms and conditions WWW.LIVELAW.IN 13 stipulated therein. In fact there is also a scheme for renting motor cabs which is envisaged under Section 75 of the Act. In the instant case the permit sought is with regard to renting of motor cabs or motorcycles taxi service for hire or reward and therefore we find that the applications to be made by the appellant or any other entity similarly situated for seeking such a permission ought to be considered by respondent Nos.1 to 4 having regard to the aforesaid provisions as well as in accordance with law. 16. At this stage learned senior counsel for the appellant submits that the appellant would make an application within a period of two weeks from today. If such an application is made respondent Nos.1 to 4 shall consider the same in accordance with law within a period of two months from today. In the result the appeal is disposed of by modifying the order dated 12 09 2019 passed in the writ petition as well as the order dated WWW.LIVELAW.IN 14 14 11 2019 Parties to bear their respective costs. Sd JUDGE Sd JUDGE 