HC asks cab aggregators to apply for license or have services discontinued

The HC asked the state to issue licenses to cab aggregators on the basis of the guidelines of the Motor Vehicle Act, 2019

Mumbai: The Bombay high court (HC) on Monday directed cab aggregators in the state to apply for a license in line with provisions in a Central government act by March 16.

The license is meant for taxis under the Mumbai Taxi Rules which make it mandatory for cabs (black and yellow taxi) service providers to be authorised by the concerned authority (transport department) to provide such services. (Parveen Kumar/Hindustan Times)

The HC asked the state to issue licenses to cab aggregators on the basis of the guidelines of the Motor Vehicle Act, 2019, as an interim arrangement till it formulates its own rules. It warned aggregators that they would be barred from offering services if they fail to abide by its orders to secure a license for its drivers.

The division bench of chief justice Dipankar Datta and justice Vinay Joshi while hearing the public interest litigation (PIL) by advocate Savina Crasto was informed by the state that rules under the Motor Vehicle Act were under consideration and objections and suggestions had been invited for the terms and conditions mentioned in the draft rules. The terms and conditions would enable aggregators to apply for licenses.

The license is meant for taxis under the Mumbai Taxi Rules which make it mandatory for cabs (black and yellow taxi) service providers to be authorised by the concerned authority (transport department) to provide such services.

The bench was informed by the petitioners’ advocate that as rules were yet to be framed for services provided by cab aggregators, the service providers had not bothered to even get a license. The court was told that the cab aggregators were using the 2019 stay by the HC on the proposal by the state to amend the Act and legislate on the services of cab aggregators as an excuse for not securing a license.

The HC was told that in the absence of rules by the state, the Central act governing such services would be applicable and the cab aggregators could not be allowed to offer services without any official permission or license.

After hearing the submissions, the bench asked cab aggregators like Uber, ““How are you operating without a license?” The bench further questioned the service providers whether the stay by HC precluded them from securing a license under the central government rules. “We cannot allow you to ply without authority of law,” said the bench.

Senior advocate Janak Dwarkadas, representing Uber India, submitted that a meeting had been held between the state and the cab aggregators wherein suggestions had been given on the terms and conditions mentioned in the draft rules.

Regarding the stay by HC the bench said, “There are certain statutory guidelines but it does not mean that so long they are not decided (by the state), they cannot he followed.”

In response Dwarkadas stated that had it been told by the Union or the state they would have applied for the license.

Thereafter the bench said, “So long rules are finalised (by the state), you are under obligation to abide by license conditions mention in the central government guidelines. If you do not get a license we will stop you from plying your vehicles.”

The CJ then pointed to the problems being created due to the absence of proper rules to govern the services provide by cab aggregators and referred to an incident involving his son who was travelling in a vehicle belonging to a cab aggregator. The CJ said that his son was travelling on Noida expressway when the driver dozed off and he had to control the steering wheel. CJ observed that this happened because the drivers were working round the clock without a break and naturally got tired and hence there was a need for the cab aggregators to follow some guidelines.

Thereafter then bench asked the state government to issue license based on the central government guidelines till it framed its own rules. The HC also asked the transport department to make the Central guidelines workable for issuance of licenses through the transport commissioner and asked the cab aggregators to apply for the license by March 16. The court also asked the transport commissioner to form an appellate authority to hear grievances of the applicants by March 9.