Can private buses, popularly known as omni buses, which ply both inter-State and intra-State services using contract carriage permits, fix and collect the fare from individual passengers? No, said a Division Bench (comprising two judges) of the Madras High Court way back in 2016.
However, the Supreme Court had stayed the High Court’s verdict on February 3, 2017 following an appeal preferred by the Tamil Nadu government. Since then, the matter remains in limbo with the State appeal continuing to remain pending till date without passing final orders even after six years.
During the Deepavali season in 2016, a Division Bench of Justices S. Nagamuthu (since retired) and M.V. Muralidaran (now Acting Chief Justice of Manipur High Court) had taken up a suo motu public interest litigation petition on the basis of a news report in a Tamil daily regarding complaints of exorbitant fares demanded by omni bus operators.
After hearing then Advocate General R. Muthukumarasamy (since dead) for the State government and the Tamil Nadu Omni Bus Owners’ Association, the Bench pointed out that the Motor Vehicles Act, 1988, provides for issuance of either ‘stage carriage’ or ‘contract carriage’ permits to commercial passenger vehicles.
Boarding or deboarding en route
Stage carriage permits were issued to vehicles such as government buses and share autorickshaws which were entitled to board or deboard passengers en route while plying between two places. On the other hand, the contract carriage permits do not allow such boarding or deboarding en route.
As per law, the omni buses and regular autorickshaws, holding the contract carriage permits, could be engaged only on contract, by the permitted capacity of passengers, for a point to point travel. In other words, a group of people travelling from one place to another could engage an entire bus on contract.
Unfortunately, either “in ignorance of the law or pretending to be ignorant, the authorities in this State have allowed the contract carriage operators to commit illegality by collecting exorbitant individual fares with impunity. Virtually, the illegality has been allowed to be perpetuated,” the Bench wrote.
The judges held that the fixation and collection of fares from individual passengers on ‘per seat’ basis by the omni bus operators was against the very definition of ‘contract carriage’ and hence illegal. They also refused to accept the contention that it was the agents and not the omni bus owners who collect the fare from individual passengers.
“What could not be done by a contract carriage operator cannot be done by his agent also. Therefore, neither the contract carriage operator nor his licensed agent could fix individual fare for the passengers who travel in the contract carriages,” the Division Bench said.
Committee appointed to fix fare
Further, taking note that the State government had not fixed the charges that could be collected by the contract carriages despite Section 67 of the Motor Vehicles Act empowering it to do so, the Bench appointed a committee headed by former Madras High Court judge K.N. Basha to make recommendations regarding fare fixation.
The judges ordered the committee should comprise of the Transport Commissioner, Director of the Institute of Road Transport, Joint Secretary in the Home (transport) department, and the Joint Secretary in the Finance department. It was this judgment that was taken on appeal by the State to the Supreme Court.
On February 3, 2017, a three judge Bench comprising the then Chief Justice of India J.S. Khehar and Justices N.V. Ramana (who subsequently became CJI in 2021 and retired from service in 2022) and D.Y. Chandrachud (the incumbent Chief Justice of India) granted an interim stay and it continues to be in operation till date.
