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Service & Administrative LawSupreme Court of India

Ambala Bus Syndicate P. Ltd. v. Chandigarh Administration

Civil Appeal · 2018 INSC 895Decided 26 Sept 2018
Civil Appeal No. 10002 of 2018
Justice Kurian Joseph · Justice Sanjay Kishan Kaul

Background

Ambala Bus Syndicate operated non-air-conditioned stage-carriage buses between Punjab and Chandigarh under old permits issued before 1966 and had continued operating until 2008. The Punjab and Haryana High Court's Division Bench held that a 1998/2001 transport Scheme for Chandigarh barred the Union Territory from counter-signing the company's permit, overturning a Single Judge who had ruled in the company's favour, so the company appealed to the Supreme Court.

Decision Breakdown

The Supreme Court held that the Division Bench had overlooked a specific 2008 reciprocal agreement between Punjab and Chandigarh, which expressly allowed counter-signature of non-AC buses holding pre-1966 permits, regardless of the unilateral 1998 Scheme. It reasoned that a Scheme under Chapter VI of the Motor Vehicles Act only overrides a reciprocal agreement under Chapter V where the two are genuinely inconsistent, and here the bilateral 2008 agreement specifically preserved the company's category of permit, so there was no real conflict. Accordingly, it set aside the High Court Division Bench's order and restored the Single Judge's ruling in the company's favour.

Lesson Learnt

A later, specific bilateral agreement between two transport authorities can continue to protect a pre-existing class of permits even where a general unilateral scheme appears to say otherwise: the two must actually conflict before the general scheme is allowed to override the specific agreement.

Ambala Bus Syndicate P. Ltd. v. Chandigarh Administration – Legal Case Shots | LegalAware