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Appeal No. 335 of 1961‑62, decided on 16th July 1963, Dis trict Lahore.

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-----S. 47‑Number of applica tions much more than route permits available for grant‑Guiding principles narrated.

P L D 1962 W. P. (Rev.) 116 rel.

These are two appeals from the Muslim Bus Service and District Transport Co‑operative Society against the decision of the R. T. A., Lahore taken in its meeting held on 18/19th May 1962, granting two particular stage carriage permits to each of the respondents on Lahore‑Mianwali via Jaranwala route. In this single order I shall dispose of both appeals.

2. The facts are that Messrs Hamid Bus Sesvice Ltd., Mianwali had been granted two stage carriage permits by the R. T. A., Lahore at its meeting held on 27/29th May 1957. Muslim Bus Service went up in appeal and Mr. Nasir Ahmad, M. B. R. in his order, dated 27th January 1961; remanded the case back for reconsideration. The Authority thereafter advertised only 2‑B parts in June 1961 on the present route Lahore‑Mianwali via Jaranwala a distance of 229 miles. In the meanwhile there was a good deal of newspaper publicity to the effect that parties, who applied for route permits of their choice and had new vehicles, would be granted route permits Therefore 3 large number of transport companies submitted applications, The R. T. A. Lahore, without any regard for the traffic potential of the route, or the other important considerations laid down under section 47 of the Motor Vehicles Act, granted 43 stage carriage Permits to 19 Transport Companies. However, of these only 23 permits were availed of and the rest lapsed. Transport Companies adversely affected lodged appeals before the appellate authority. My learn ed predecessor, Mr. S. M. Ikram, in his order in R. O. A. M. No. 82/60‑61, remanded the case back for fresh decision after carrying out a proper survey. He was of the opinion from the above facts that the Authority had not complied with the require ment of section 47 of the Act. The Authority at its meeting on 18/ 19th May 1962, considered the data collected by its office and substantially reduced the number of permits to be granted. In the case of Lahore‑Mianwali via Jaranwala route decided to grant 25 instead of 43 permits granted under its previous orders, The data on which this assessment was based related to the number of buses paying toll tax to the M. C., Shahpur enroute, situated on the final portion of this route between Sargodha and Mianwali. The following companies were made the grants:‑

3. It has been argued by the learned counsel for the appellant Transport Companies that the R. T. A. assessed the traffic require ments of the route in an arbitrary and capricious manner and solely on the totally up-sound basis of toll tax paid by buses at the barrier at Shahpur M. C. They have contended that a proper statistical survey would indicate that there is no scope for grant of permits on this route, because :‑

(a) The route is not scientific, since passengers wishing to travel between Lyallpur and Mianwali would chose the direct route via Chiniot, Pindi Bhatian, Sargodha, Mianwali‑a distance of 208 miles, if on a proper survey the R. T. A. arrives at the conclusion that more direct buses between Lahore and Mianwali are required, they plead that this could be granted along this route and the through‑passengers saved in having to waste time and pay for the 21 extra miles in the detour to Jaranwala and Lyallpur.

(b) After the requirements of the through‑passengers between Lahore and Mianwali have been met by the R. T. A. by grant ing the number of permits due necessary on the Lahore Chmiot‑Pindi Bhatian‑Mianwali route, the existing route will be found to be artificial and they consist of three rational routes, namely‑

(i) Lahore ‑Lyallpur;

(ii) Lyallpur‑Sargodha ; and

(iii) Sargodha‑Mianwali.

If the R. T. A. finds, there is at all any scope for more permits on these routes, this should be assessed, duly advertised and grants (sic) under separately.

4. The appellant transport companies contended that they are old operators and their business is suffering owing to wasteful cut‑throat competition and over capitalisation, which has been caused by the present grants.

5. It is further contended that my detailed ruling reported in P L D 1962 W. P. (Rev.) 116, even though it was from an order of the R. T. A., Lahore, itself has not been followed. In this ruling I had laid down guiding principles in amplication of section 47 of the Motor Vehicles Act for dealing equitably with cases in which the number of applicants was several times more than the number of permits available. In particular, the cases of Elahi Transport Service, Madina Trading Company and Rafiq Bus Service were cited as virtually new concerns, who, instead of being granted permits over shorter routes of about 100 miles until they have established their efficiency and organisational capacity in running these routes, had been granted the present 229 miles route, contrary to the principle laid down under III (1) of that ruling. Cases of Tariq Goods and Passenger Transport Co., Ahmed Transport Company and Modern Transport Service, Bure wala, have been cited as having been introduced on this long route out of their zones, contrary to the principles laid down per Mr. Nasir Ahmad, M. B. R. in the ruling, reported in P L D 1956 W. P. (Rev.) 16, 26, 29 and 50.

6. As I was not satisfied with the basis of Shahpur M. C's. toll tax figures for the assessment of traffic potential of this very long route, I got the Secretary P. T. A., Lahore to examine the earnings of the West Pakistan Road Transport Board, which was running services along this route, as well as of individual opera tors. His report, dated 1st December 1962, in which he has scrutinised the figures made available by the Transport Companies, as well as reports from S. P. Sargodha and Sheikhupura that the contentions of the learned counsels for the appellant Transport Companies have substantial force. That not only in their plea that direct service between Lahore and Mianwali should run by the shortest distance via Chiniot, Pindi Bhatian, Sargodha, thereby saving an unnecessary detour of 21 miles to the direct passengers, but also that this zig‑zag route should be considered in its three rational sections, namely, Lahore‑Lyallpur, Lyallpur‑Sargodha and Sargodha‑Mianwali and traffic potential calculated on a scientific basis after scrutinising the data in the report of the Secretary P. T. A. in response to my note, dated 28th November 1962, a copy of which may be furnished to the R. T. A. for guid ance. It has been brought out in that report that 'the Govern ment Transport Service had to suspend their daily Service on this route because it had become altogether unrevenaties. This being the position, there is no scope for the grant of route permits along this circuitous after route either to the appellants or to the respondents.

7. In these circumstances, I accept the appeals, set aside the orders of the R. T. A. granting permits to the respondents 2 to 9 and direct it to proceed as indicated in the paragraph last preced ing. There should, however, be no objection to the R. T. A. granting a restricted number of temporary permits for a period of 2 to 3 months to operate on portions . . . . of this route, until it has had time to assess the traffic potentials in the light of my observations above and in accordance with principles laid down in P L D 1962 W. P. (Rev.) 116.

8. I would in conclusion like to observe that my further experience as Chairman, P. T. A. and Appellate Authority has confirmed me of the correctness of the principles laid down in my ruling in P L D 1962 W. P. (Rev.) 116. The only exception to the basic principles laid down therein, which I find necessary relates to rule III (1), regarding new concerns. I think on equitable grounds R. T. As may in hard cases relax the condition of granting shorter routes of 100 miles odd only to new concerns until they have established their capacity for running longer routes, in favour of such of the new concerns comprising Pak Nationals with foreign exchange earnings abroad, who were induced to invest this in buses on the assurance of the Pakistan Government that they would be granted liberal route permits and who are not allowed to dis pose of their vehicles in Pakistan after import. I have noticed that quite a number of such concerns have more than a dozen of the new models standing idle, although their owners from their experience of transport companies abroad appear to be qualified even for the grant of longer routes initially.

M. S. Appeal accepted.

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