Setback for Delhi bike taxis as SC sets aside high court order
1 min read 12 Jun 2023, 11:24 PM ISTThe government has assured the apex court that an official policy will soon be implemented, and a licensing system will be operational by 31 July
PremiumMumbai/New Delhi
The Supreme Court on Monday set aside a Delhi High Court order that allowed bike taxis to operate in the national capital till a policy for aggregators was framed.
Consequently, bike taxi services such as Rapido and Uber will no longer be operating in Delhi until the government announces a policy.
However, the government has assured the apex court that an official policy will soon be implemented, and a licensing system will be operational by 31 July.
According to a bench comprising Justices Aniruddha Bose and Rajesh Bindal, considering the circumstances, a suspension of the notification was unwarranted. “We stay both impugned judgments."
The bench also directed the high court to hear the matter expeditiously and allowed the parties to file an early hearing application.
In February, Delhi Transport Department had issued a public notice, prohibiting bike taxi services from operating on city roads without a valid business licence. The department said those who defy the order will be fined up to ₹1 lakh, considering that the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988. “The driving licence of the driver will be suspended for a minimum period of three years," it added.
Many bike taxi aggregators challenged the notice, arguing that it violated the principles of natural justice, and subsequently approached the high court seeking respite. On 26 May, the HC directed the Delhi government to refrain from taking coercive action against bike taxi aggregators Rapido and Uber until an aggregator policy pertaining to bike taxis was formulated.
In response, the Delhi government challenged the high court order before the apex court. On Monday, the SC said that the high court must consider the case without being influenced by the observations of the apex court.
Appearing for Delhi government, senior counsel Manish Vashisht said the aggregators were operating two-wheelers without proper licence or permits, as mandated by Section 93 of the Motor Vehicles Act.
He said that non-transport two-wheelers should not be used as taxis without a policy in place.
On the other hand, the counsel for Uber argued that the company had relied on notifications permitting two-wheelers to operate in many states since 2019. The counsel added that the government’s failure to draft a policy should not lead to a ban on the existing 35,000 bike taxi operators.
“The order by Supreme Court was probably premised on the point that in absence of a policy, the Motor Vehicles Act prohibits such commercial use of two wheelers by aggregators. The order will bring the aggregators to a grinding halt," said Sameer Jain, managing partner, PSL Advocates and Solicitors.
Similarly, the Maharashtra government had earlier refused to grant Rapido a two-wheeler bike taxi aggregator licence. In January, the Bombay High Court directed bike aggregator Rapido Bike Taxi to temporarily suspend its services in Maharashtra or face cancellation of its licence permanently, in a case pertaining to the illegal plying of bike taxis in Maharashtra. Subsequently, the high court order was challenged before the Supreme Court which turned it down as well.