Supreme Court Agrees to Hear Delhi Govt Plea Challenging High Court Order on Bike-Taxi Services by Rapido

Supreme Court Agrees to Hear Delhi Govt Plea Challenging High Court Order on Bike-Taxi Services by Rapido

The Supreme Court’s vacation bench comprising of Justices Aniruddha Bose and Rajesh Bindal agreed to hear the Delhi government’s plea challenging the High Court order staying its notice to bike-taxi aggregator Rapido and allowing it to ply till the final policy has been notified.

Senior Advocate Manish Vashisht, appearing for the Delhi government, said the High Court’s decision to stay its notice till the final policy is notified is like virtually allowing the writ petition by Rapido.

The High Court on 26th May, while issuing notice to the Delhi government on Rapido’s plea challenging a law that excludes two-wheelers from being registered as transport vehicles, directed no coercive action shall be taken against the bike-taxi aggregator till the final policy has been notified.

In its order, the High Court which has listed Rapido’s plea on August 22 before the registrar for completion of pleading, said, “The counsel for the petitioners (Rapido) submits that policy is under active consideration. Accordingly, we hereby stay the notice and make it clear that the stay shall operate till the final policy is notified. However, once the final policy is notified, if the petitioners are still aggrieved, they are at liberty to take steps before the appropriate forum.”

The petition was filed by Roppen Transportation Services Private Limited, which runs Rapido, contended that the Delhi government order directing it to immediately stop plying non-transport two-wheelers from carrying passengers on hire-and-reward or for commercial purposes was passed without any reason or rationale.

Earlier this year, a public notice was issued by which the government had cautioned bike-taxis against plying in Delhi and warned that violations would make aggregators liable for a fine of up to Rs. 1 lakh.

Following which, Rapido had also challenged a show-cause issued to it by the state government, alleging that it has violated various fundamental and constitutional rights, and has been passed in violation of the principles of natural justice.

“The direction issued by the transport department under the impugned notice is ex-facie arbitrary and passed without following due process under law, without providing any reasons for such prohibition,” the plea reads.

It also stated that the state government’s conduct was contrary to the intent and object of the Centre with respect to issuance of licenses to aggregators as laid down under the Motor Vehicles Act, read with the Motor Vehicle Aggregator Guidelines, 2020 (MoRTH Guidelines).

Before the Apex Court, the Delhi government has sought urgent listing of the matter in view of the impugned interim order of the High Court, the Respondents- Uber and Rapido are continuing the use of non-transport vehicles including two wheelers for the purpose of aggregation and ride pooling, which is contrary to the provisions laid under the Motor Vehicles Act read with Motor Vehicle Aggregator Guidelines 2020 without obtaining valid permits.

According to the state government, the respondents are required to get themselves registered and apply for permits after complying with the conditions laid down therein upon its notification and only thereafter, the Respondents could be allowed to continue their services in accordance with law.

Accordingly, the bench listed the matter for hearing on 7th June, 2023.