The Kerala High Court recently ruled that tourist buses, which operate under contracts with specific passengers, are not permitted to provide services to the general public in the manner of stage carriages.
The Court determined that tourist buses function as contract carriages, unlike stage carriages, which are vehicles that transport six or more passengers for hire or reward, typically based on the distance traveled.
The Court stated that tourist buses are not permitted to pick up or drop off passengers other than those with whom they have an initial contract at the start of the journey.
"A tourist vehicle operator does not have a right to stop the vehicle to pick up or drop off passengers not included in the contract, enroute a journey. In other words, a tourist vehicle cannot run its service like a stage carriage," the September 10 ruling stated.
Justice N Nagaresh further highlighted that, according to the All India Tourist Vehicles (Permit) Rules of 2023, tourist buses are required to prepare and carry a passenger list at the beginning of each journey. This list must include details such as the pick-up and drop-off points and can be maintained in either print or electronic form.
The Court emphasized that these buses are bound by this contract and are not allowed to operate like stage carriages, which pick up and drop off passengers along the route.
"A tourist vehicle operator cannot enter into multiple contracts with more than one person or Group of persons. The persons travelling should not only have the intention of travelling to the same destination but should also have the common purpose of travelling as well," the Court added.
The Kerala High Court was addressing multiple writ petitions, primarily from tourist vehicle operators penalized for operating their buses as stage carriages, in violation of a circular issued by the State government on June 6, 2023.
Some petitions were filed by stage carriage operators and the Kerala State Road Transport Corporation (KSRTC), seeking action against tourist buses encroaching on routes reserved for stage carriages under the Motor Vehicles Act, 1988 (MV Act).
Tourist vehicle operators, covered under the All India Tourist Permit (AITP), argued that they were not bound by the restrictions applicable to contract carriages. They claimed that, for passenger convenience, they allowed boarding at specific points and disembarking at designated stops, but this flexibility did not mean they operated like stage carriages.
On the other hand, KSRTC and stage carriage operators contended that Rules 6(2), 10(1), and 13(1) of the 2023 Rules violated the MV Act by allowing tourist buses to function like stage carriages. This created unfair competition, reducing the revenue of stage carriage operators and the KSRTC.
The Court analyzed Sections 2(7) and 2(40) of the MV Act, which define contract carriages as vehicles hired under specific contracts to transport passengers without picking up or dropping off others along the route, unlike stage carriages that operate on fixed routes, allowing passengers to board and alight at various points for individual fares.
The Court emphasized that the 2023 Rules were intended to regulate tourist buses, not to allow them to operate as public transport vehicles like stage carriages. It clarified that AITP vehicles must adhere to their permit conditions and cannot pick up or drop off passengers en route unless they were included in the original contract.
As a result, the Court upheld the validity of the June 6, 2023 circular and affirmed the actions of the Motor Vehicles Department in penalizing tourist vehicles for breaching their permit conditions.
Case Title: Sarath G Nair v State of Kerala & ors and connected cases
Website designed, developed and maintained by webexy