Tourist buses not like stage carriages, cannot pick up other passengers en route: Kerala High Court

The Kerala High Court recently held that tourist buses operate under a contract with specific passengers and should not offer services to the general public like stage carriages [Sarath G Nair v State of Kerala & ors and connected cases]..Tourist buses are in the nature of contract carriages and not stage carriages which are vehicles that carry six or more passengers for hire or a reward that differs based on distance travelled, the Court found. Therefore, it cannot pick up and drop off passengers other than those whom the tourist buses have contracted with at the start of the journey, the Court said."A tourist vehicle operator does not have a right to stop the vehicle to pick up or drop off passengers not included in the contract, enroute a journey. In other words, a tourist vehicle cannot run its service like a stage carriage," the September 10 ruling stated.Justice N Nagaresh further emphasized that under the All India Tourist Vehicles (Permit) Rules of 2023 (2023 Rules), tourist buses must prepare and carry a list of passengers at the start of every journey. This list must include details such as pick-up and drop-off points, either in print or electronic form.The buses are bound by this contract and cannot offer services similar to stage carriages, which operate by picking up and dropping off passengers during the journey, the Court said. "A tourist vehicle operator cannot enter into multiple contracts with more than one person or Group of persons. The persons travelling should not only have the intention of travelling to the same destination but should also have the common purpose of travelling as well," the Court added..The Court was dealing with multiple writ petitions, primarily filed by tourist vehicle operators who had been penalized for operating their buses like stage carriages in violation of a circular issued by the State government on June 6, 2023.Other petitions included those by stage carriage operators and the Kerala State Road Transport Corporation (KSRTC), who sought action against tourist buses that were encroaching on routes meant for stage carriages under the Motor Vehicles Act, 1988 (MV Act)..The tourist vehicle operators argued that their buses, covered by AITP, were not bound by the restrictions that applied to contract carriages. They contended that for passenger convenience, they allowed boarding at specific points and disembarking at designated stops. However, this flexibility did not mean they operated like stage carriages, they said. The KSRTC and other stage carriage operators argued that Rules 6(2), 10(1), and 13(1) of the 2023 Rules violated the MV Act. They claimed that these rules permitted tourist buses to function as stage carriages. This allowed tourist buses to unlawfully compete against stage carriers by offering regular services along fixed routes, which negatively impacted their revenue as well as the KSRTC's, it was contended. .The Court analysed Sections 2(7) and 2(40) of the MV Act, according to which a contract carriage is a vehicle hired under a specific contract to transport passengers from one point to another or on a time basis, without picking up or dropping off other passengers along the way.In contrast, a stage carriage operates on fixed routes allowing passengers to board and alight at various points by paying individual fares for the distances they travel.The Court emphasized that the intent of the 2023 Rules was to regulate tourist buses and not to permit them to operate like public transport vehicles such as stage carriages. It further explained that AITP vehicles must adhere to their permit conditions and cannot pick up or drop off passengers en route unless such passengers were included in the original contract..Therefore, the Court dismissed the plea to set aside the June 6, 2023 State circular and concluded that the circular was valid and lawful.The Court also upheld the actions of the Motor Vehicles Department in penalizing tourist vehicles for violating their permit conditions..[Read Judgment]