Supreme Court annuls government decisions on truck transport sector

KATHMANDU: The Supreme Court has annulled several decisions made by the Council of Ministers regarding the truck transport sector, as registered at the District Administration Office.

In a ruling on a writ petition filed by the Federation of Truck Transport Entrepreneurs Nepal (FTTEN) on July 17, 2018, a bench comprising judges Sapana Pradhan Malla and Balkrishna Dhakal declared the government's actions unconstitutional. The court overruled the legal status of FTTEN and the Cabinet's decisions in the transport sector.

The Supreme Court found the government's decisions to not renew the registration certificates of FTTEN, the Federation of Nepalese National Transport Entrepreneurs (FNNTE), and other associations, as well as the cancellation of registrations and confiscation of property, to be unconstitutional. FTTEN General Secretary Rajendra Bikram Baniya stated that this decision has brought significant relief to transport entrepreneurs.

The court reviewed government decisions from April 17, 2018, and July 15, 2017, and held that these actions were against the constitution and the law. The court emphasised that only the Chief District Officer has the authority to renew and revoke registration certificates under the Act 2034, rendering the government's decisions outside legal jurisdiction.

The court ordered the release of FTTEN's property and the renewal of its registration certificate in accordance with legal procedures. The Office of the Attorney General has been instructed to ensure the implementation of this decision.

FTTEN General Secretary Baniya hailed the ruling as historic, noting that it provides significant relief to transport entrepreneurs and is expected to positively impact the rule of law. He expressed hope that the decision will ensure the institutional existence and security of entrepreneurs' assets.

The court also noted that Section 9|7 of the Transport Management Procedures Guide, 2060 (amended), violated FTTEN's rights. While the directive aims to regulate the transport sector, the legal basis for cancelling FTTEN's registration and confiscating assets was not clarified.

The Supreme Court highlighted that managing the transport sector is a matter of public interest and concern. The court stressed that decisions against any person or institution must adhere to the principles of natural justice, which were not followed in the government's actions against FTTEN. Consequently, the court ruled these decisions lacked legal basis.

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