The right of every citizen of India to practise an occupation of their own choice has been guaranteed under Article 19(1)(g) of the Constitution of India and it reads as thus:
“19. Protection of certain rights regarding freedom of speech, etc.
(1) All citizens shall have the right-...
(g) to practise any profession, or to carry on any occupation, trade or business.”
However, this right is not absolute and can be reasonably restricted under clause 19(2) of Article 19.
Point for determination:
But the central argument here would be: Whether the State Government of Goa can restrict the right of taxi operators to carry on their occupation of providing services if they choose not to enrol in the registry of an app based aggregator?
From a statutory perspective:
The Motor Vehicles Act, 1988 which has been amended vide Motor Vehicles (Amendment) Act, 2019, contains the relevant provisions which prescribe the regulation of taxi operators in the State of Goa.
Section 72. Grant of stage carriage permits:
● Section 72 provides the guidelines under which such permits are granted, including the necessity of the service to the public, the suitability of the applicant, and other conditions deemed relevant by the transport authority.
● This ensures that taxi operations meet certain standards for safety, efficiency, and compliance with regulatory expectations.
● Thus, while Section 72 isn't exclusively about taxis, it is indeed applicable to taxi operators in the context of permit issuance for contract carriages.
Section 67. Power to State Government to control road transport:
● Section 67 of the Motor Vehicles Act, 1988, empowers the State Government to control road transport within its jurisdiction.
● Regulatory Authority: The State Government has the authority to regulate both the public and private transport vehicles operating within the state.
● Issuance and Limitation of Permits: The State Government can restrict the issuance of permits for stage carriages (buses that stop at predetermined stages on a route), contract carriages (including taxis), and goods carriages based on various factors like the adequacy of existing transport services, the benefit to the public, and the prevention of undesirable competition among transport services.
● Coordination of Transport Services: The State Government may coordinate different modes of road transport, such as motor vehicle transport with rail or water transport.
● This section essentially provides state governments with substantial control over the organisation, management, and regulation of road transport services, aimed at enhancing public welfare, efficiency in transport services, and strategic transport planning.
Section 103. Issue of permits to State transport undertakings:
Section 103 of the Motor Vehicles Act, 1988, deals with the issue of permits to State transport undertakings, providing a framework for preferential treatment in the permit issuance process. The key aspects of this section would be:
● Preferential Treatment: State transport undertakings may be given preferential treatment in the issuance of permits over other applicants. This is to facilitate the smooth operation and expansion of public transport services managed by the state.
● Granting of Permits: Based on the considerations and objections received, the transport authority can grant permits to the State transport undertakings, specifying conditions related to the routes, the nature of services, and the operation schedules.
● Purpose: The aim is to prioritise state-managed transport services in public interest, ensuring that adequate and efficient public transport services are available.
Section 2. Definitions:
(1A) "aggregator" means a digital intermediary or market place for a passenger to connect with a driver for the purpose of transportation;
Section 93. Agent or canvasser or aggregator to obtain licence:
● Section 93 of the Motor Vehicles Act, 1988, stipulates that agents, canvassers, or aggregators involved in the business of soliciting customers for public service vehicles must obtain a license to operate legally.
● Section 93 has been designed to regulate intermediaries in the transport sector, ensuring they operate under a framework that promotes professionalism, transparency, and accountability in their dealings with the public.
Looking at Legal Precedents:
● In KALYAN SINGH Vs. STATE OF U. P. on: 11/12/1961, the Hon’ble Supreme Court of India observed that:
● The appellant, whose permit for plying stage carriage was shortly to expire, applied for its renewal. The renewal application was published in the Gazette calling for objections. The State Government published a notification proposing to nationalise the route.
● The appellant challenged the validity of the scheme and the cancellation of his licence.
● Held, that the scheme was valid and the appellant’s licence was properly cancelled.
● Gullapalli Nageswara Rao v. Andhra Pradesh State Road Transport Corporation, [1959] Supp. 1 S.C.R. 319, applied.
● The scheme having been validly promulgated and having become final under s. 68D(3) it had the effect of extinguishing all rights of the appellant to ply his stage carriage under his permit and he could not maintain a petition under Art. 226 of the Constitution.
● The order passed by the Regional Transport Authority cancelling the appellant’s permit was purely consequential on the scheme and could not be challenged if the scheme was valid.
Opinion:
● Unless the State Government of Goa intends to nationalise the business of Taxi Operations in the State, it cannot compel any taxi operator to enrol on an app-based aggregator service for continuing taxi operations.
● Notwithstanding the powers to impose “reasonable restrictions” under Article 19(2), the said restrictions need to be based on considerations of “public order, decency or morality”.
● Since, getting on the app of a taxi services aggregator is purely a strategic business decision, the State Government cannot compel the enrolment of taxi operators who are free to choose their methods of providing taxi services while functioning within the four corners of the Motor Vehicles Act.
