BREAKING | Bombay High Court Rejects Rapido's Plea Against Refusal of Licence To Ply Bike-Taxi In Pune

"It is difficult to see how both arguments can exist. When non-compliance is pointed out, the absence of guidelines is cited...we do not understand how an aggregator can lay claim to operate without a license and against the guidelines...It is also not right to say the rejection was solely on the lack of the policy. The order would have to be seen with its notings."

The court added that the Centre's Motor Vehicle Aggregator Guidelines, 2020 guidelines do not restrain the State Government from making its guidelines. It added that an aggregator cannot assume permission to ply.  

"Under what conditions the aggregators must ply, etc...cannot be assumed by the aggregator," the court said.

The state submitted a notification dated January 19, 2023, prohibiting the use of non-transport vehicles (2,3 or 4-wheelers) for aggregation and carpooling. The state said that the use of such private vehicles has raised serious practical and security concerns of the passengers. Further, it may cause a serious threat to the road safety of the general public.

However, Rapido said it wasn't keen on amending its petition to challenge the fresh notification and would pursue its challenge regarding the refusal of license to the Pune RTO.   

The court was hearing Rapido’s plea challenging Pune RTO’s December 22, 2022 order rejecting its application for a license for two and three-wheeler taxis. It  noted from the order that the necessary documents were not attached by Rapido in the application. 

Last week the bench restrained Rapido from continuing all its services – bike taxi, rickshaw and delivery in Maharashtra till today as it was operating without licenses. However, on Friday the bench clarified that it was restricting itself to the Pune order. 

Senior Advocate Aspi Chinoy for Rapido submitted that the fundamental reason for the rejection of the license was the lack of state government policy. He said that the license is rejected only in Pune and applications elsewhere in the state are pending.

Referring to a March 2022 notification issued by the Motor Vehicle Department allowing RTOs to act as licensors, Chinoy argued that the moment such notification was issued, the 2020 guidelines came into effect in Maharashtra. Thus, two and three-wheeler taxis are allowed to operate, and they cannot be denied plying just because applications for fresh licenses are pending.

Advocate General Dr Birendra Saraf for the State said that the absence of policy isn't the only thing. Rapido hasn't rectified the errors pointed out and submitted complete documents in compliance with the Motor Vehicles Act. Further, there are requirements for stringent compliance according to the Centre's guidelines such as the requirement of a valid permit. He argued this there is no compulsion for a state government to grant a license to an aggregator.

The Bombay High Court in a PIL had directed cab aggregators to strictly follow the 2020 guidelines. However, in an appeal by Uber, the Apex Court passed a status quo order.

Saraf said that neither the HC nor the SC order provides that the pendency of an application can result in deemed license and the aggregator can continue unless there is an express rejection.The AG in the previous hearing had also told the court that a committee has been set up to explore the formulation of guidelines for bike taxis in the state.

Further, the process of prosecution against entities like Uber who are operating bike taxis has been initiated, he said.The court had earlier said that State cannot remain in a limbo when it comes to taking a decision in the matter.

The petitioner, during the earlier hearings, has argued that there is discrimination against it as Uber etc. continue to offer the same service of bike taxis but are protected by the status quo order.

Case no. – WP/15991/2022 [Civil]

Case Title – Roppen Transportation Services Pvt. Ltd. and Anr. v. State of Maharashtra

Citation: 2023 LiveLaw (Bom) 37

(Compiled by Amisha Shrivastava)