HC: Motor-cycle taxis are a form of contract carriages and must be granted permit

  

The Karnataka high court recently comprising of a bench of Justice BV Nagarathna observed that Motor vehicle taxis that provide transport services for hire or reward are well within the definition of “contract carriage” under the Motor Vehicles Act. Motor-cycle taxis are a form of contract carriages and must be granted permit. (Ani Technologies Pvt Ltd. V. State of Karnataka & Ors.)

Facts of case

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.

Contention of the Parties

Learned counsel for the appellant drew the courts attention to Section 2(7) of 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 74, the conditions under which they may be granted as well as the waiver of conditions.

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 (iii) under the column Transport Vehicles vide Notification dated 05/11/2004 (Annexure -A).

Courts Observation & Judgment

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.”

The bench noted that 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 stipulated therein. In fact, there is also a scheme for renting motor-cabs, which is envisaged under Section 75 of the Act.

The court disposing of the petition remarked, “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.”

Read Judgment;  

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(With input from news agency language)

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