SC Order Bike Taxi
SC Order Bike Taxi
SC Order Bike Taxi
THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.4039 OF 2023
(Arising out of SLP(Civil) No.12000 of 2023)
GOVERNMENT OF NCT OF DELHI & ORS. ...Appellant(s)
Vs.
ROPPEN TRANSPORTATION SERVICES PVT.
LTD. & ORS. ...Respondent(s)
WITH
CIVIL APPEAL NO.4040 OF 2023
(Arising out of SLP(Civil) No.12046 of 2023)
O R D E R
Leave granted.
assail two interim orders, both dated 26th May 2023 passed by
the High Court of Delhi at New Delhi before us. These orders, in
Signature Not Verified
Digitally signed by
Anita Malhotra
Date: 2023.06.14
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under a regime operated through aggregators.
3. In the appeal arising out of SLP(C) No. 12000 of 2023, the
one of their officers, who were the writ petitioners before the
High Court. The order impugned in this appeal reads:
"1. Allowed, subject to all just exceptions.
2. The application is accordingly disposed of.
3. Notice issued.
4. Learned Additional Standing Counsel accepts
notice on behalf of the respondents and seeks time to file
counter affidavit.
5. Let needful be done within six weeks from today
with an advance copy to the other side.
6. Rejoinder thereto, if any, be filed within four weeks
thereafter.
7. Renotify on 22.08.2023 before Registrar for
completion of pleadings.
8. Learned counsel for the petitioners submits that
policy is under active consideration. Accordingly, we
hereby stay the notice and make it clear that the stay
shall operate till the final policy if notified. However, once
the final policy is notified, if the petitioners are still
aggrieved, they are at liberty to take steps before the
appropriate forum."
Uber India Systems Pvt. Ltd., one of their Directors and another
The order of the Division Bench in this appeal is:
"1. Present petition has come on transfer.
2. Counter affidavit filed by the respondents is lying
objection as it has been filed after the time granted by
this Court.
3. Registry is directed to place the same on record.
4. Rejoinder thereto, if any, be filed within four weeks.
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5. Renotify on 22.08.2023 before Registrar for
completion of pleadings.
6. Till further orders, no coercive steps shall be taken
against the petitioners."
5. On 19th February 2023, the Government of NCT of Delhi
(henceforth, who shall be described as the appellant) had issued
specified:
"GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
TRANSPORT DEPARTMENT
5/9, UNDER HILL ROAD, DELHI110054
PUBLIC NOTICE
USE OF TWOWHEELED VEHICLES FOR CARRYING
PASSENGERS ON HIRE OR REWARD
The above said violation is a contravention of the registration
condition of the vehicle which is punishable under Section 192 of
Motor Vehicles Act, 1988 having punishment for the first offence up
to Rs.5000/, and for a second or subsequent offence with
imprisonment which may extend to one year with fine up to
Rs.10,000/ beside impounding of the vehicle.
In addition to the above punishment, the driving licence of the
driver will be suspended for a minimum period of three months
under the direction of the Hon’ble Supreme Court committee.
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Further, it is also noticed that some digital platforms are
facilitating such operations by offering booking through an app
thereby engaging themselves as an aggregator in contravention of
the provision of Section 93, and shall be punishable with a fine up
to one lakh rupees under Section 193 (2) of Motor Vehicles Act,
1988.
Sd
Special Commissioner, Transport"
High Court invoking its constitutional writ jurisdiction and it is
in these Writ Petitions filed by them, the aforesaid orders were
February 2023 alleging breach of the provisions of Section 93 of
the Motor Vehicles Act, 1988 (“the 1988 Act”) and contemplating
present appeals, we do not consider it necessary to reproduce
the Show Cause Notice in detail.
writ petitioners without proper licence or permit and plying of
such nontransport vehicles for hire or reward is in violation of
registration condition.
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8. The requirement for an aggregator to obtain licence is
stipulates:
"93. Agent or canvasser or aggregator to obtain licence:
(1) No person shall engage himself
(i) as an agent or a canvasser, in the sale of
tickets for travel by public service vehicles or in otherwise
soliciting customers for such vehicles, or
(ii) as an agent in the business of collecting
forwarding or distributing goods carried by goods
carriages.
(iii) as an aggregator,
unless he has obtained a licence from such authority
and subject to such conditions as may be prescribed by
the State Government.
Provided that while issuing the licence to an
aggregator the State Government may follow such
guidelines as may be issued by the Central Government:
Provided further that every aggregator shall comply
with the provisions of the Information Technology Act,
2000 (21 of 2000) and the rules and regulations made
there under."
9. The term "aggregator" has been defined in Section 2(1A) of
the 1988 Act to mean a digital intermediary or market place for
transportation. Submission on behalf of the Delhi Government
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is that they are in the process of formulation of a policy for
attracting the penal provisions contained in the 1988 Act.
appeared for respondentUber India Systems Pvt. Ltd. and the
other corespondents whereas Mr. Sidharth Bhatnagar, learned
Government policy pertaining to the operation of aggregators in
the transport sector having been formulated in the year 2020,
the Delhi government has not yet come out with their own policy
and in such circumstances, it was well within the jurisdiction of
Further submission on behalf of the respondents has been that
a large number of twowheeler owners are at present plying their
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respective vehicles through the aggregation mechanism and if
the banning Notice is revived at this stage, their livelihood would
be at stake. It is also the case of the aggregators that in terms
would be caused to the general public, whose interest the Delhi
Government is meant to represent and protect, if these vehicles
are permitted to be operated pending formulation of policy of the
granted in pursuance thereof.
11. When these matters were taken up for hearing on 9th June
upon the learned Solicitor General so that this Court would have
Government have proceeded in these matters on the basis that
the subjecthead comes within List III of the 7th Schedule to the
Constitution of India.
12. On this point, the respondentswrit petitioners had raised
the plea that the question of regulating aggregators came within
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the State is not empowered to lay down any guidelines or policy
this judgment as in passing the interim order, it does not appear
that the Division Bench of the Delhi High Court had examined
reflected in the interim orders assailed in these appeals. We are
proceeding in this matter with our prima facie view that it is
conditions for obtaining licence as an aggregator as stipulated in
Section 93 of the 1988 Act.
1988 Act. His attention was drawn to Section 66 of the 1988
having private registration mark/number could be permitted to
use the vehicles for hire or reward through the aggregators. Mr.
these Writ Petitions are pending before the High Court, we do
not want to make any comment on this point, as this provision
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also does not appear to have been considered by this High Court
at the interim stage. The impugned order does not reflect that
this point was urged before the High Court at the interim stage,
when the interim orders were passed.
14. Two judgments of this Court were referred to on behalf of
Systems Pvt. Ltd. and another vs. Union of India and Others
Justice of India on 13th February 2023 and the case of Roppen
2023. Both these matters came to this Court from the Bombay
without a licence under Section 93 of the 1988 Act was under
consideration. We enquired from the learned counsel appearing
for the parties as to whether the subject of controversy in these
and it was submitted that the subjectdispute out of which the
aforesaid petitions arose related to operation of the aggregators
as a whole and not confined to twowheelers.
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15. So far as Delhi is concerned, we enquired from the learned
senior counsel representing the respondentswrit petitioners as
without licence under Section 93 of the 1988 Act or not and the
answer was in the affirmative from the side of the respondents.
relied before us, it has been held or observed that the
Section 93 of the 1988 Act. In the case of Uber India Systems
Court:
"11. We are of the view that it would not be appropriate to
continue with the present proceedings, which arise from an
interlocutory order of the High Court. As correctly observed
by the Division Bench of the High Court, in view of the
statutory regime which has come into force with the
amendment of Section 93 by the Amending Act of 2019, no
person can continue as an aggregator in the absence of a
licence. We accordingly permit the petitioners to apply for a
licence within a period of three weeks, that is, on or before
6 March 2023. Within the aforesaid period, it would be
open to the petitioners to submit a representation to the
State Government in regard to the conditions which were
imposed while granting a provisional licence to the
petitioners. The State Government shall, within a period of
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two weeks from the date of the submission of the
representation, take a considered view on the grievance
which has been set forth in the representation of the
petitioners. We clarify that we have not expressed any
observations on the merits of such a grievance.
Thereafter, the State Government may take an appropriate
decision so that pending the finalization of the rules, an
appropriate decision is taken in regard to the applications
for the grant of licence in terms of the provisions of Section
93(1) of the Act. If the petitioners have any subsisting
grievance, it would be open to them to move the High Court
of Judicature at Bombay either in the pending Public
Interest Litigation or independently so that the merits of
their grievance(s) can be considered by the High Court."
(supra) it was held by this Court:
"9. Government of Maharashtra has not formulated any
rules in relation to aggregators for the purpose of
enforcing the provisions of Chapter V, more particularly,
Section 93(1). The first proviso to Section 93 stipulates
that while issuing a licence to an aggregator, the State
Government may follow such guidelines as may be issued
by the Central Government. The Guidelines which have
been issued by the Central Government have a
persuasive value. They are not mandatory. When the
State Government formulates rules in pursuance of its
power under Section 96, it may also bear in mind the
Guidelines which have been framed by the Union
Government in 2020. Both in terms of the first proviso to
Section 93(1) and the plain terms of the Guidelines, it is
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evident that while these Guidelines have to be borne in
mind, the ultimate decision is to be arrived at by the State
Government while considering whether to grant a licence
and in regard to the formulation of rules in pursuance of
the general rule making power under Section 96."
operating since 21st April 2022 was directed to be extended till
licence.
operation of twowheelers under the aggregation mechanism for
transport of passengers and no prohibition has been imposed on
fourwheeler vehicles.
February 2023, one of the factors that weighed with the State
registration were being used for hire and reward, which bears
the characteristic of a public service vehicle in terms of Section
2(35) of the 1988 Act. This again is our primafacie view. In the
two decisions of this Court cited before us, this factor does not
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appear to have had come up for consideration before this Court.
20. In relation to these two appeals, the prohibition order came
on 19th February, 2023 and the interim order of the High Court
was passed on 26th May 2023. Thus, the operators were under
present two appeals do not fit with the two Special Leave
Petitions from the orders of the Bombay High Court to justify
Moreover, the prohibition in these two proceedings are in fact
confined to twowheelers only with private registration. We have
dealt with this aspect in the preceding paragraph.
21. On behalf of the Delhi Government Mr. Manish Vashisht,
submitted that the policy of the Delhi Government in respect of
the twowheelers of the Delhi Government in respect of the two
wheelers would be in place and the licencing regime will become
operational from 31st July 2023.
22. Under these circumstances, in our opinion, interim orders
ought not to have been passed staying whole scale operation of
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already expressed our primafacie view as regards power of the
consideration of balance of convenience, such interim stay on a
suffering because of the public notice of 19 th February 2023. But
they are not the writ petitioners before the High Court. We
cannot suspend, for that reason alone operation of what appears
Government has assured this Court of formulating the policy for
twowheeler aggregators by 31st July 2023.
23. We accordingly direct permanent stay on operation of the
impugned orders passed by the Delhi High Court, which were
interim in nature. The parties are given liberty to apply before
the High Court for early hearing of the Writ Petitions. We have
no doubt that on formulation of the Policy, each application for
licence/permit in respect of twowheelers to be operated through
the regime of aggregators, shall be dealt with expeditiously in a
timebound manner.
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24. Having held so, we do not think any purpose would be
expressed in this order shall not bind the Delhi High Court in
final disposal of the writ petitions.
25. No order as to costs.
……..........................J.
(ANIRUDDHA BOSE)
……...........................J.
(RAJESH BINDAL)
NEW DELHI;
June 12, 2023.
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ITEM NO.36 COURT NO.6 SECTION XIV
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
VERSUS
CORAM :
HON'BLE MR. JUSTICE ANIRUDDHA BOSE
HON'BLE MR. JUSTICE RAJESH BINDAL
(VACATION BENCH)
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Mr. Neeraj Kishan Kaul, Sr. Adv.
Mr. Mahesh Agarwal, Adv.
Mr. Rishi Agrawala, Adv.
Mr. Manu Krishnan, Adv.
Mr. Pranjit Bhattacharya, Adv.
Ms. Madhavi Agarwal, Adv.
Mr. Toshiv Goyal, Adv.
Ms. Ira Mahajan, Adv.
Mr. E. C. Agrawala, AOR
Leave granted.
The Civil Appeals are disposed of in terms of the
signed order.
Pending applications also stand disposed of.
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ITEM NO.36 COURT NO.6 SECTION XIV
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
VERSUS
CORAM :
HON'BLE MR. JUSTICE ANIRUDDHA BOSE
HON'BLE MR. JUSTICE RAJESH BINDAL
(VACATION BENCH)
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Mr. Neeraj Kishan Kaul, Sr. Adv.
Mr. Mahesh Agarwal, Adv.
Mr. Rishi Agrawala, Adv.
Mr. Manu Krishnan, Adv.
Mr. Pranjit Bhattacharya, Adv.
Ms. Madhavi Agarwal, Adv.
Mr. Toshiv Goyal, Adv.
Ms. Ira Mahajan, Adv.
Mr. E. C. Agrawala, AOR
Leave granted.
signed order.
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