Karnataka High Court Passes Interim Order Restraining Govt From Taking Coercive Steps Against 'Ola Bike'

A single judge bench of Justice Pradeep Singh Yerur in its order passed on February 18 said, "It is needless to mention and it is apparent on the face of the record that though the application is filed by the petitioner as long back as 19.04.2021 pursuant to the order of the writ appeal passed by this Court a clear direction was given to the respondents to consider the application preferred by the petitioner herein for grant of permission to use bike taxis within the State of Karnataka."

It added, "In view of the fact that a similar order has been passed in WP.No.14627/2021 wherein the petitioner was granted interim relief by directing the State Government not to take any coercive steps, the petitioner herein who is also in the similar business of providing bike taxis also deserves interim protection in the matter. Accordingly, respondent Nos.1 to 4 shall not take any coercive steps as against the petitioner in operating bike taxis, within the area specified by him in the application filed seeking permission, till next date of hearing."

The company had approached the court as the government has not considered their application for grant of permission to operate bike taxis, pursuant to an order of the High Court.

The High Court had by its order dated April 5, 2021 directed the authorities to in two months time consider and decide on the representation made for grant of permits for running a motorcycle taxi service in the state.

The petitioners had contended that section 2(7) of the Motor Vehicle Act, 1988, defines contract carriage, which is an inclusive definition and the power of the Central and State Government to control transport vehicles which also includes a contract carriage and the provisions dealing with application for contract carriage permit namely. Further, as per section 73 of the MV Act, the grant of contract carriage permit. Section 74, lays down the conditions under which they may be granted as well as the waiver of conditions.

Accordingly, permission is being sought for running a motorcycle taxi being a transport vehicle as per Notification dated 05/11/2004.

Reliance was also the report of the Committee constituted to Propose Taxi Policy Guideline to Promote Urban Mobility, submitted on 15/12/2016 by the Ministry of Road Transport and Highways, wherein there is a specific reference to encourage and permit new forms of urban mobility like bike sharing and e-rickshaws and to reduce delays and to embrace digital technology online grant of the permits is recommended for such transport vehicles engaged in bike sharing and e-rickshaws for last mile connectivity or even otherwise.

The court had while disposing of the appeal said, "A motorcycle could be used for hire to carry one passenger as a pillion. Even as per the Central Government Notification such a motorcycle used for hire would, prima facie, come within the definition of contract carriage as defined under sub-section (7) of Section 2 of the MV Act, 1988."

Further it had said "The definition of contract carriage is an inclusive definition, which includes a maxi-cab and a motor-cab notwithstanding that separate fares are charged for its passengers. The definition of contract carriage, is an inclusive definition and not an exhaustive one, which would include even a motorcycle taxi which is to be used for hire or reward on which a passenger could be carried on pillion as it is categorised as a transport vehicle by issuance of notification by the Central Government under the provisions of the MV Act, 1988."

Government Pleader, appearing in the present case on advance notice, sought some time to take necessary instructions in the matter as to why the application filed by the petitioner has not been considered.

Accordingly, the matter was adjourned for a week.

Case Title: ANI TECHNOLOGIES PRIVATE LIMITED v. STATE OF KARNATAKA

Case No: WP 19869/2021