Section 68 Motor Vehicles Act: Transport Authorities

Section 68 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) The State Government shall, by notification in the Official Gazette, constitute for the State a State Transport Authority to exercise and discharge the powers and functions specified in sub-section (3), and shall in like manner constitute Regional Transport Authorities to exercise and discharge throughout such areas (in this Chapter referred to as regions) as may be specified in the notification, in respect of each Regional Transport Authority, the powers and functions conferred by or under this Chapter on such Authorities:

Provided that in the Union Territories, the Administrator may abstain from constituting any Regional Transport Authority.

(2) A State Transport Authority or a Regional Transport Authority shall consist of a Chairman who has had judicial experience or experience as an appellate or a revisional authority or as an adjudicating authority competent to pass any order or take any decision under any law and in the case of a State Transport Authority, such other persons (whether officials or not), not being more than four and, in the case of a Regional Transport Authority, such other persons (whether officials or not), not being more than two, as the State Government may think fit to appoint; but no person who has any financial interest whether as proprietor, employee or otherwise in any transport undertaking shall be appointed, or continue to be, a member of a State or Regional Transport Authority, and, if any person being a member of any such Authority acquires a financial interest in any transport undertaking, he shall within four weeks of so doing, give notice in writing to the State Government of the acquisition of such interest and shall vacate office

Provided that nothing in this sub-section shall prevent any of the members of the State Transport Authority or a Regional Transport Authority, as the case may be, to preside over a meeting of such Authority during the absence of the Chairman, notwithstanding that such member does not possess judicial experience or experience as an appellate or a revisional authority or as an adjudicating authority competent to pass any order or take any decision under any law:

Provided further that the State Government may,

(i) where it considers necessary or expedient so to do, constitute the State Transport Authority or a Regional Transport Authority for any region so as to consist of only one member who shall be an official with judicial experience or experience as an appellate or a revisional authority or as an adjudicating authority competent to pass any order or take any decision under any law;

(ii) by rules made in this behalf, provide for the transaction of business of such authority in the absence of the Chairman or any other member and specify the circumstances under which, and the manner in which, such business could be so transacted

Provided also that nothing in this sub-section shall be construed as debarring an official (other than an official connected directly with the management or operation of a transport undertaking) from being appointed or continuing as a member of any such authority merely by reason of the fact that the Government employing the official has, or acquires, any financial interest in a transport undertaking.

(3) The State Transport Authority and every Regional Transport Authority shall give effect to any directions issued under section 67 and the State Transport Authority shall, subject to such directions and save as otherwise provided by or under this Act, exercise and discharge throughout the State the following powers and functions, namely:

(a) to co-ordinate and regulate the activities and policies of the Regional Transport Authorities, if any, of the State;

(b) to perform the duties of a Regional Transport Authority where there is no such Authority and, if it thinks fit or if so required by a Regional Transport Authority, to perform those duties in respect of any route common to two or more regions;

(c) to settle all disputes and decide all matters on which differences of opinion arise between Regional Transport Authorities;

(ca) Government to formulate routes for plying stage carriages; and]

(d) to discharge such other functions as may be prescribed.

(4) For the purpose of exercising and discharging the powers and functions specified in sub-section (3), a State Transport Authority may, subject to such conditions as may be prescribed, issue directions to any Regional Transport Authority, and the Regional Transport Authority shall, in the discharge of its functions under this Act, give effect to and be guided by such directions.

(5) The State Transport Authority and any Regional Transport Authority, if authorised in this behalf by rules made under section 96, may delegate such of its powers and functions to such authority or person subject to such restrictions, limitations and conditions as may be prescribed by the said rules.

Legal Commentary & Landmark Judgments: Section 68

Section 68 of the Motor Vehicles Act, 1988 mandates the constitution and composition of the State Transport Authority (STA) and Regional Transport Authorities (RTAs) as specialized quasi-judicial administrative bodies tasked with administering the transport permit regime across designated transport regions.

Statutory Constitution of STA and RTAs: The State Government must constitute by official notification a State Transport Authority for the entire State and Regional Transport Authorities for specified regions or districts to exercise statutory permit and regulatory powers under Chapter V.
Composition and Judicial Character: Each Authority consists of a Chairman (possessing judicial experience or high administrative standing) and prescribed official and non-official members; they function as independent quasi-judicial tribunals bound by natural justice.
Statutory Disqualification for Financial Bias: Section 68(2) strictly disqualifies any person who has any direct or indirect financial interest in any transport undertaking (whether private fleet or state corporation) from being appointed or continuing as a member, codifying the doctrine against bias (nemo judex in causa sua).

Key Landmark Precedents:

G. Nageswara Rao v. Andhra Pradesh State Road Transport Corporation (Gullapalli I) AIR 1959 SC 308: The Constitution Bench held that Transport Authorities exercise quasi-judicial functions directly affecting private property and trade rights; any financial or operational bias on the part of an authority member invalidates the proceedings as a denial of natural justice.
B. Rajagopala Naidu v. State Transport Appellate Tribunal AIR 1964 SC 1573: The Supreme Court affirmed that RTAs are independent statutory tribunals and must decide permit applications solely on statutory criteria without yielding to political interference or informal executive directives.

Courtroom Practice & Strategic Litigation Guidance:

In permit litigation before RTAs, always verify the composition and official affiliations of the quorum. If any member of the Authority holds shares, retains commercial consultancies, or has family interests in a competing transport fleet or State Transport Undertaking, lodge an immediate written objection alleging statutory disqualification under Section 68(2) and seek reconstitution of the bench.

Section 68: Transport Authorities

Section 68 of Motor Vehicles Act: Motor Vehicle Regulation & Claims Procedure

Legal Commentary & Landmark Judgments: Section 68