Concessions on basis of State Govt's policies cannot be termed as loss of business or financial loss: Himachal Pradesh HC

While dismissing the plea moved by a private transport operator against the 50% concession in bus fare to women in Intra-State buses, the Himachal Pradesh High Court observed that concessions on the basis of policies floated by State authorities cannot be termed as loss of business or financial loss.

The bench of Justices Tarlok Singh Chauhan and Virender Singh said that the state gives various concessions such as distribution of food grains at concessional price to the below poverty line card holders, but it cannot be termed as a loss to the grocery shop owners dealing in food grain.

Rather, it is the duty of the State to provide food, clothing, shelter and such type of other facilities at a concessional rate to those who are in need thereof, but do not have requisite finances, the court opined.

Further, while taking note of the fact that such type of beneficiary schemes do cause loss to other persons, the court held that it does not mean that the policy decision of the State is unconstitutional.

The petitioner had sought a letter issued by the Principal Secretary (Transport), Government of Himachal Pradesh to the Managing Director, Himachal Road Transport Corporation (HRTC), Shimla conveying approval of the government to allow 50% concession to women passengers in fare in HRTC ordinary buses w.e.f. 1.7.2022 for Intra-State routes with certain conditions, to be quashed.

The petitioner contended that due to this decision of the HRTC and the State Government, he and similarly situated operators are losing their benefits and consequently facing financial losses.

The counsel for the petitioner also submitted that such type of concession only to female passengers is violative of article 14 of the Constitution of India.

The State Government as well as the HRTC both opposed the petition while stating that the action of the State was in the larger public interest as against individual interest and it did not, in any way, offend any constitutional provision or any of the statutory provision.

The respondents also submitted that the total financial burden on account of implementation of 50% fare discount scheme to the women passengers worked out to be Rs. 59.69 crores and the same had been already compensated by the State Government.

Court noted that the notification issued by the State Government allowing the 50% fare discount to women in buses had been issued in exercise of executive powers conferred upon the government under article 162 of the Constitution.

"Till and so long the notification does not violate any provisions of law, the same cannot be struck down, more particularly, bearing in mind and taking into consideration spirit of article 15 of the Constitution," it held.

Court further held that though the petitioner alleged that the private players being parallel player(s) were suffering a dent in the business, it could not be a sole ground for quashing the impugned notification.

Court stressed that a scheme for free bus ride or concessional fares to female and children is not new in the country. Court highlighted the benefits of such schemes.

"It is well known that girls, more especially in the rural areas, drop out the schools because their parents are not in a position to incur the expense of their seats and, therefore, even if a small portion of budget of running families is cut down, that can allow these girls to study, pursue their career or travel for their needs, hence financial burden will not hinder their growth in social inclusion with better opportunities and education while ensuring empowerment of women in the society," the court said.

It also added that the scheme will also ensure better safety of women with more female riders because the free tickets are bound to lead more female passengers travelling in public transports and this in turn would create an atmosphere of safety, security amongst the women travellers.

"Availability of medical assistance and care because of concessional fare the women now would be in a position to travel to places where there are better medical facilities," the court added furthermore.

In view of the aforesaid discussion, court found no merit in the instant petition and dismissed the same.

Case Title: Ramesh Kamal v State of H.P. and Another