The Rajasthan High Court, in a significant ruling, held that the licence of a motor driving school cannot be automatically cancelled upon the death of the licensee in the absence of a statutory provision that mandates such a cancellation. The case, Smt. Bhanwri v. State of Rajasthan & Ors (S.B. Civil Writ Petition No. 3789/2024), was presided over by Justice Rekha Borana, who set aside the decision of the transport authorities to terminate the licence and ordered a fresh consideration of the petitioner’s application.
Background of the Case:
The petitioner, Smt. Bhanwri, wife of late Shri Fatta Ram Siyag, approached the court after the transport authorities rejected her request for the transfer of the motor driving school licence that had been issued in her husband’s name. The licence, originally granted in 2012, had been renewed several times and was valid until November 2027. Following her husband’s death in June 2023, Smt. Bhanwri applied to have the licence transferred to her name, but her application was denied on the grounds that there was no provision under the Central Motor Vehicles Rules, 1989, or the Motor Driving School Registration Scheme, 2018, to allow such a transfer.
Legal Issues Involved:
The primary legal question before the court was whether the transport authorities were justified in refusing to transfer the motor driving school licence and in ordering its automatic cancellation, despite no statutory provision explicitly mandating such action.
The petitioner, represented by Advocate Mr. Vivek Firoda, argued that while the relevant rules do not explicitly provide for the transfer of a licence, they also do not call for its automatic cancellation in the event of the licensee’s death. The petitioner’s counsel cited a 2009 Madras High Court judgment in V. Krishnasamy v. The Licensing Authority-cum-Regional Transport Officer, where it was held that the death of a licensee should not result in the blind rejection of a transfer application if the successor meets all necessary qualifications.
On behalf of the State of Rajasthan, Additional Advocate General Mr. Sajjan Singh Rathore, assisted by Mr. Rajendra Singh, argued that the existing legal framework did not permit such a transfer. They contended that any successor of a deceased licensee would have to apply afresh under the amended Scheme of 2018, which governs the issuance and renewal of licences for motor driving schools.
Court’s Observations:
Justice Rekha Borana, after hearing both sides, made several important observations. The court noted that while the rules and scheme governing motor driving schools were silent on the issue of automatic cancellation of licences upon the death of the licensee, this silence could not be interpreted to mean that the licence must be cancelled. The court observed that in such cases, it becomes the duty of the courts to balance equities and ensure that justice is done.
In her ruling, Justice Borana emphasized:
“In absence of any provision for automatic cancellation of a licence on the death of a licensee, the licensing authority could not have proceeded on to cancel the same. Equity, justice, and good conscience demand that where the law is silent, courts should step in to provide relief that aligns with these principles.”
The court also referenced the Supreme Court’s decision in Central Council for Research in Ayurvedic Sciences & Ors. v. Bikartan Das & Ors (2023), where the importance of equitable relief in situations where statutory provisions are silent was reiterated.
Judgment:
The court quashed the transport authorities’ order dated February 23, 2024, which had rejected the petitioner’s application for the transfer of the licence. The court ordered the authorities to reconsider the application in light of Rule 24 of the Central Motor Vehicles Rules, 1989, which outlines the qualifications for operating a driving school. If the petitioner, Smt. Bhanwri, is found qualified under the rule, the authorities must issue the licence in her name. The court also clarified that the amended provisions in the Scheme of 2018 could not be applied retrospectively to the licence issued in 2012.
The court directed the authorities to decide on the petitioner’s eligibility and pass appropriate orders within eight weeks. Furthermore, the court advised the State of Rajasthan to consider introducing a provision in the rules or the scheme that would allow for the transfer of licences to legal heirs in the event of the licensee’s death, noting that this would serve the larger public interest.
