U.P. State Road Transport Corporation Through Its Chief General Manager vs Kashmiri Lal Batra & Ors.

Held: Grant of relief to the private operators seems well-nigh impossible unless of course MPSRTC is clearly shown to have been wound up – IS-RT Agreement by its very nature is an agreement between two States but not a law under the relevant MV Act – Approved schemes and notified routes, which are envisaged in Chapter VI, would obviously override s.88, in view of s.98 – Plying of a stage carriage by a private operator on an inter-State route, which happens to overlap a part of a notified intra-State route, should be expressly excluded by incorporating requisite recitals in the IS-RT Agreement, which is subsequent in point of time, because no such agreement can surface in the absence of consensus between two neighbouring States – Once two States hold talks for formulating and opening up routes for plying of stage carriages connecting cities/towns in such States on reciprocal basis and reduce the agreed terms to a written agreement, which is also given wide publicity to remove any possible hurdles, there is a presupposition of various objects and purposes having been factored therein, which undoubtedly have serving public interest at the forefront – If the two reciprocating States fail to notice that the services to be introduced would face road-blocks because certain inter-State routes overlap a few intra-State routes, public interest is rendered a casualty and thereby, the whole object and purpose of the IS-RT Agreement would be frustrated and lost in the process – Apparent lack of application of mind and of purpose by the States of UP and MP noticed which have dented the prospect of maximisation of public interest consequent upon introduction of a few of the inter-State routes overlapping part of routes notified in favour of the UPSRTC – Much was expected of the States of UP and MP as well as the UPRSTC to protect the interest of the passengers and commuters, which unfortunately has not fructified – While no permission can be granted at this stage to any private operator having a permit issued by the STA, MP to ply his vehicle on an inter-State route connecting two cities in the neighbouring States, which overlaps any notified intra-State route in the State of UP, much can be achieved through dialogue between the two States – Stage carriage services are provided for the benefit of a vast cross-section of the population and subjecting them to inconvenience would amount to disservice by the States of MP and UP – After all, an inference can legitimately be drawn that the STA, MP having issued permits to private operators on routes hitherto before reserved for the MPSRTC, the same might not have been possible if the MPSRTC had been plying its vehicles on such routes – However, terms of the IS-RT Agreement specifically required the MPSRTC to be wound up for the private operators to stake claims for obtaining permits on routes earmarked for it – Though not been conclusively established that the MPSRTC has been wound up, an opportunity ought to be extended to establish it and if proved, at least an attempt ought to be made to fully work out the IS-RT Agreement with modifications which itself contemplates that such a modification could be made – Principal Secretaries of the Transport Departments of the States of MP and UP, to meet mutually within the stipulated period to discuss the modalities for fully working out the IS-RT Agreement. [Paras 43-50]