Court Upholds Fundamental Right to Business, Declares Permit Denial Arbitrary and Unreasonable
In a significant judgment, the Chhattisgarh High Court has set aside the orders of the State Transport Authority (STA) and the State Transport Appellate Tribunal (STAT), which denied an Inter-State permanent stage carriage permit to Abhinandan Singh, a bus operator. The denial was based solely on the pending tax dues of Rs. 28 lakhs against his father, Lakhpati Singh. The High Court ruled that such a denial was arbitrary, unreasonable, and violative of the fundamental right to carry on business under Article 19(1)(g) of the Constitution of India.
The case, titled "Abhinandan Singh v. State of Chhattisgarh," revolved around Singh's application to operate a bus service between Ambikapur and Bokaro. Despite his status as an independent bus operator, his application was rejected by the STA citing his father's tax liabilities, a decision later upheld by the STAT.
Justice Amitendra Kishore Prasad, presiding over the case, emphasized that the Motor Vehicles Act, 1988, does not include any statutory provision that could disqualify an applicant from obtaining a permit due to a family member's tax dues. The court further highlighted that the fundamental right to carry on any trade or business, as guaranteed by Article 19(1)(g), can only be restricted through legislation imposing reasonable restrictions, which was absent in this case.
The court referenced previous judgments, including the Supreme Court's decision in Mithilesh Garg v. Union of India, to underline that individual rights cannot be curtailed without explicit statutory backing. It was noted that the denial of a permit based on family member tax dues without statutory provisions imposing such a restriction was legally unsustainable.
Moreover, the court observed that the petitioner’s father had already contested the tax dues in a separate writ petition, claiming overpayment and seeking adjustments. The court had previously directed the concerned authority to consider and resolve this claim.
In light of these observations, the High Court quashed the previous orders denying the permit and directed the STA to grant the requested permit to Singh, provided no other legal impediments exist.
This judgment is seen as a reinforcement of the fundamental rights of individuals to pursue their chosen occupations without undue restrictions based on the actions of their family members, upholding the principles of justice and fairness.
Bottom Line :
An Inter-State permanent stage carriage permit cannot be denied to an applicant solely on the ground of pending tax dues against a family member. Such denial is arbitrary, unreasonable, and violative of the fundamental right under Article 19(1)(g) of the Constitution of India.
Statutory provision(s): Article 19(1)(g) of the Constitution of India, Article 19(6) of the Constitution of India, Article 226 of the Constitution of India, Motor Vehicles Act, 1988
Abhinandan Singh v. State of Chhattisgarh, (Chhattisgarh) : Law Finder Doc id # 2960882
