Delhi Govt Policy To Issue Permits Solely To E-Auto Rickshaws Not Arbitrary : Supreme Court Rejects Bajaj's Plea

On Wednesday, the Supreme Court dismissed the application filed by Bajaj Auto Limited seeking declaration that the advertisement of the Govt. of NCT of Delhi dated 18.10.2021, calling for application for new TSR permits exclusively for e-autos is ultra vires Articles 14 and 19(1)(g) of the Constitution of India. On hearing the parties and perusing their affidavits, a bench comprising Justices L. Nageshwar Rao, B.R. Gavai and B.V. Nagarathna concluded that the said advertisement cannot be said to be arbitrary."The advertisement issued by Govt NCT of Delhi for grant of permits for 4261 e-autos cannot be said to be arbitrary for the following reasons: The decision is in conformity with FAME II scheme of GOI and EVP 2020;Residents of Delhi are badly affected with air pollution, undoubtedly a part of which is caused; is attributed to vehicles. Even though CNG autos are BS6 compliant still there is some carbon emission.We do not agree…that the fundamental right of the applicant, especially A.14 and A. 19(1)(g) is violated.There are 92000 CNG is on the road, replacement of old vehicles can be done by vehicles manufactured by the applicant. The amendment to the MV Act and Central Motor Vehicle Rules cannot mean the addition of e-autos on the road can be done over and above the 1 lakh autos." Senior Advocate, Mr. Basava Prabhu S. Patil appearing on behalf of Bajaj Auto apprised the Court that the present application was filed challenging the notification issued by the Govt of NCT Delhi on 18.10.2021 seeking to issue exclusive permits for e-autos. At the outset, the Bench sought clarity on the legal right that Bajaj Auto intended to exert. "What is your legal right?"Mr. Patil submitted that the Court had set a cap of one lakh permits with respect to vehicles plying on the roads of Delhi. Out of these one lakh permits the Delhi Government intends to issue the remaining 4261 permits to the e-auto rickshaws. "There is a one lakh cap…there are 4261 permits left, they want to issue these to e-auto rickshaws…" Pointing out a crucial aspect from the affidavit filed by the Central Government, Mr. Patil averred that as per a notification of the Central Government dated 18.10.2018, there is no requirement for permit for e-auto rickshaws. "One important aspect has come up in the affidavit filed by the Central Government…In the light of notification of 18.10.2018 there is no need of having any permit for e-auto rickshaw…"In order to contextualise his argument, Mr. Patil took the Court through the background of the matter - "Earlier there was a two stroke engine when the initial order was passed, which was polluting the city. My lords said that you shall not issue any permits. Thereafter all converted to CNG and LPG my lord said there will be a cap of 5000…My lords raised it to one lakh. Thereafter an application was filed as one lakh was not sufficient and a report was called from….and State Govt. of Delhi. Both said remove the cap as there were no more polluting vehicles."Mr. Patil argued that the advertisement of the Govt. of NCT of Delhi would be in the teeth of the amendment to Section 66 of the Motor Vehicles Act, whereby the Central Government has removed the requirement of permit for e-autos - "Now this advertisement has been issued which says we will give you the remaining of one lakh, ie. 4261 permits to only e-autos… in light of amendment to Section 66 of the Motor Vehicles Act if now, no permit is required then the question of this notification..not arise…in addition another application in pending before my lords, for increasing the quota for which ….. and Delhi Govt. has no objection."However, the Bench refused to accept the argument stating that, the exemption provided by the Central Government cannot be assumed to have a bearing on the removal of the cap imposed by the Court on the consideration of health concerns of the citizens. "Only because Govt. has exempted, it doesn't mean that we would remove the cap. That is a different issue altogether."The Court enquired, "We are repeatedly asking you what is your right?" Responding to the Court, Mr. Patil submitted that giving away the remaining 4261 permits to the e-autos would abridge his client's Article 19(1)(g) rights. "If there is an order passed in a manner of 4261, they are taking away our right under the one lakh."The Court emphasised that irrespective of the issue of permit, the increase in the number of polluting vehicles could not surpass the one lakh mark. It noted that though BS6 compliant vehicles had reduced its carbon emission levels, it is not pollution free. "Now, we want to ask is, permit or no permit would that be added in the one lakh cap fixed by the Court."It added - "One lakh for what? For vehicles on the road which was contributing to pollution. Even now, this BS6, even in your I.A. you say there is an improvement of carbon...

Delhi Govt Policy To Issue Permits Solely To E-Auto Rickshaws Not Arbitrary : Supreme Court Rejects Bajaj's Plea

Sohini Chowdhury

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Sohini Chowdhury

Delhi Govt Policy To Issue Permits Solely To E-Auto Rickshaws Not Arbitrary : Supreme Court Rejects Bajaj's Plea

Sohini Chowdhury

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Sohini Chowdhury

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