Does the Telangana State Road Transport Corporation (TSRTC) have legal sanctity as an institution and is its existence valid?
This crucial question having potential to upset Telangana government’s decision to privatise 5,100 permits of TSRTC came up for discussion in the High Court on Thursday.
When the court sought to know the stand of the Central government on the ongoing strike by TSRTC workers, Assistant Solicitor General N. Rajeshwar Rao replied that the TSRTC has no legal sanctity.
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When the division bench comprising Chief Justice Raghvendra Singh Chauhan and Justice A. Abhishek Reddy asked him to elaborate on the matter, Mr. Rao said the Centre had to approve the creation of TSRTC which was carved out of the Andhra Pradesh State Road Transport Corporation. There was no such approval from the Centre, he said.
Disputing the contention of the the Assistant Solicitor General, Advocate General B.S. Prasad said the TSRTC has legal sanctity as it was created under the new Section 3 of the RTC Act.
In that case, did the TSRTC have new buses, new staff members and new infrastructure, the Chief Justice asked.
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“If it (TSRTC) is a newborn child, it should have new clothes and new medicines...,” the Chief Justice said.
Chief Secretary S.K. Joshi, who was present in the High Court, said the TSRTC was established to cater to the needs of people in the newly created State.
If the TSRTC was a new establishment, how can Telangana government insist for share in the distribution of the assets and liabilities of the APSRTC, the bench sought to know.
The Principal Finance Secretary, who too was in the court, tried to convince the bench that government can claim its share in APSRTC under Section 107 of the AP Reorganisation Act.
“I am sorry that section comes into play only if there are some inconsistencies,” the Chief Justice said. Mr. Rao said the decision to bifurcate the APSRTC was taken by the then board of directors of the corporation.
The scheme for distribution of assets and liabilities was sent to an experts committee of the Centre.
“Even if it was referred to the committee, the formal approval of the Centre for APSRTC bifurcation is a must. Where is that Centre’s approval?” the bench insisted.
“Before securing the Centre’s permission, how can assets be distributed, and issues of distribution of assets be made? It is like putting cart before the horse,” the bench said.
The Chief Justice said the State Legal Department should have advised the government to take Centre’s approval before carving out the TSRTC from the APSRTC -- to claim share in the latter’s assets. Under Section 47 (a) of the RTC Act, both the Telugu States should have written to the Centre for its permission for bifurcating the APSRTC. “Ignorance of law is no defence,” the bench said. The AG said he would clarify on the matter when the court resumes hearing on Monday.