No Provision For Automatic Cancellation Of Driving School License On Holder's Death, State Should Allow Transfer To Successor: Rajasthan HC

Rajasthan High Court has ruled that automatic cancellation of the license for running a motor driving school (“license”) on the death of the licensee, in the absence of any statutory provision for the same, cannot be permitted.

The bench of Justice Rekha Borana therefore quashed an order to this effect and directed the Transport Department to assess the eligibility of the deceased's wife (petitioner) under applicable laws to be granted such a license and if found eligible, transfer her husband's license in her name.

The Court also advised the State of Rajasthan to take up the issue in larger public interest and consider inclusion of some provision of transfer of license in the name of successor/legal representative of the licensee in the event of his/her death.

The Court was hearing a petition against a Transport Department's order by which the petitioner's application to transfer her deceased husband's license to run a motor driving school in her name was rejected. The transfer application was rejected on the ground that there was no provision in the Central Motor Vehicles Rules, 1989 (“1989 Rules”) or the Motor Driving School Registration Scheme, 2018 (“2018 Scheme”) for transfer of license.

Furthermore, the Department observed that the license be deemed to be cancelled and should be deposited back by the petitioner to the Department.

It was argued by the counsel for the petitioner that the license was valid till 2027 and in the event of there being no breach of any of the conditions of the license, it could not be terminated only on the ground that there was no provision to transfer.

Aligning with arguments presented for the petitioner, the Court observed that the order of the Transport Department was violative of the equitable principles of law.

The Court opined that it was true that there was no provision to transfer the license, however, at the same time, there was no provision for automatic cancellation of the license on the death of the licensee which meant that the law was silent on the situation.

“True it is that there is no specific provision providing for transfer of license on the death of a licensee but then, there is no specific provision even restraining for the same. Meaning thereby, the Rules of 1989 and the Scheme of 2018 are silent on the aspect as to what would be the consequence on the death of a licensee. Neither do they provide for automatic cancellation of the license nor for transfer of the same in favour of the successor/legal representative of the licensee.”

The Court held that in such a situation it was Court's obligation to balance the equities and to ensure grant of equitable relief. The Court observed that it was a settled position of law that in matters where the statute was silent, the Courts could pass appropriate orders granting equitable relief to justify interest of justice and balance equities in favour of parties.

Furthermore, the Court referred to two submissions made by the petitioner's counsel. Reference was made to the Madras High Court case of V. Krishnasamy vs. The Licensing Authority-cum-Regional Transport Officer & Anr. In this case, while dealing with a similar situation, the Madras High Court held that blind rejection of the transfer request could not be permitted. If one of the legal heirs fulfilled the qualification prescribed under the 1989 Rules, then the license should be transferred.

A further reference was made to a circular dated 27/4/2023 issued by the Transport Department of Uttar Pradesh by which a specific provision for transfer of license to one of the successors/legal representatives of the deceased licensee has been provided.

In this background, the Court observed that blind rejection of the petitioner's transfer application could not be said to be good in law. Consequently, the Court obligated the Transport Department to consider eligibility of the petitioner under 1989 Rules to get the license and transfer the license to her in case she is found to be qualified.

Finally, the Court advised the State of Rajasthan to make some provision to this effect in public interest and held that,

“The Constitution of India casts a duty upon the State to bear into mind, the basic principle of promoting the welfare of the people, while framing laws and policies. Hence, as a word of advise, it is expected of the State of Rajasthan to take up the issue in larger public interest and consider the inclusion of some provision for transfer of the license in the name of successor/legal representative on the death of a licensee, in the Scheme/Rules governing issuance of the license for running of a Motor Driving School.”

Accordingly, the petitioner was disposed of.

Title: Smt. Bhanwri v State of Rajasthan & Ors.

Citation: 2024 LiveLaw (Raj) 307

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