Section 103 Motor Vehicles Act: Issue of permits to State transport undertakings

Section 103 of Motor Vehicles Act: Motor Vehicle Regulation & Claims Procedure

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Where, in pursuance of an approved scheme, any State transport undertaking applies in such manner as may be prescribed by the State Government in this behalf for a stage carriage permit or a goods carriage permit or a contract carriage permit in respect of a notified area or notified route, the State Transport Authority in any case where the said area or route lies in more than one region and the Regional Transport Authority in any other case shall issue such permit to the State transport undertaking, notwithstanding anything to the contrary contained in Chapter V.

(2) For the purpose of giving effect to the approved scheme in respect of a notified area or notified route, the State Transport Authority or, as the case may be, the Regional Transport Authority concerned may, by order,

(a) refuse to entertain any application for the grant or renewal of any other permit or reject any such application as may be pending;

(b) cancel any existing permit;

(i) render the permit ineffective beyond a specified date;

(ii) reduce the number of vehicles authorised to be used under the permit;

(iii) curtail the area or route covered by the permit in so far as such permit relates to the notified area or notified route.

(3) For the removal of doubts, it is hereby declared that no appeal shall lie against any action taken, or order passed, by the State Transport Authority or any Regional Transport Authority under sub-section (1) or sub-section (2).

Legal Commentary & Landmark Judgments: Section 103

Section 103 of the Motor Vehicles Act, 1988 commands the State or Regional Transport Authority to mandatorily issue stage carriage, contract carriage, or goods carriage permits to an STU pursuant to an approved nationalization scheme overriding Chapter V, coupled with plenary powers to cancel, modify, or curtail existing private permits without any right of statutory appeal.

Mandatory Duty to Issue Permits to STU: Under Section 103(1), upon application by the STU pursuant to an approved scheme, the STA or RTA has no discretion and must issue the requisite permits, expressly overriding any contrary provisions contained in Chapter V.
Plenary Powers to Cancel, Refuse, or Curtail Private Permits: Section 103(2) empowers the Transport Authority to reject pending private permit applications, refuse renewals, cancel existing private permits, reduce vehicle quotas, or curtail routes overlapping the notified nationalized sector to give full effect to the scheme.
Absolute Ouster of Statutory Appeals: Section 103(3) expressly declares that no appeal shall lie against any order passed or action taken by the STA or RTA under sub-sections (1) or (2), giving finality to administrative execution of the approved scheme.

Key Landmark Precedents:

Ram Krishna Verma v. State of U.P. (1992) 2 SCC 620: The Supreme Court held that once a nationalization scheme is approved, the Regional Transport Authority is under a mandatory statutory duty under Section 103 to issue permits to the STU and simultaneously cancel or curtail all overlapping private permits; no private operator has a vested right to continue plying.
Gajraj Singh v. State Transport Appellate Tribunal (1997) 1 SCC 650: The Supreme Court ruled that Section 103 gives overriding statutory effect to approved schemes over Chapter V provisions; because Section 103(3) completely bars statutory appeals, an aggrieved operator's sole recourse is by way of judicial review under Article 226, which can only succeed on grounds of jurisdictional ultra vires.

Courtroom Practice & Strategic Litigation Guidance:

Do not advise clients to file statutory appeals before the State Transport Appellate Tribunal (STAT) against Section 103 permit cancellations or curtailments, as Section 103(3) bars appeal jurisdiction. Proceed directly under Article 226 of the Constitution, focusing strictly on whether the curtailment exceeded the spatial parameters of the gazetted scheme.

Section 103: Issue of permits to State transport undertakings

Section 103 of Motor Vehicles Act: Motor Vehicle Regulation & Claims Procedure

Legal Commentary & Landmark Judgments: Section 103