SC defers Delhi govt plea against HC order staying notice against Rapido to Friday

The Supreme Court on Tuesday deferred the Delhi government's plea challenging the Delhi High Court order staying its notice to bike-taxi aggregator Rapido and allowing it to ply till the final policy has been notified. 

A vacation bench of Justices Aniruddha Bose and Rajesh Bindal said it will hear the petition again on June 9. Senior advocate N K Kaul said that the case will be heard together on Friday.  

Earlier, 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. 

On May 26, the Delhi High Court, while issuing notice to the Delhi government on Rapido's plea, directed no coercive action will be taken against the bike-taxi aggregator till the final policy has been notified. 

In February 2023, the Delhi Transport Department issued a public notice to stop plying their bike taxi services effective immediately. 

The app-based aggregators were prevented from plying bike taxis on the road without commercial permits. The transport department had warned that any violation will result in penal action. 

The public notice by the transport department said that the companies defying the orders will be fined up to Rs 1 lakh, as the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988. 

Rapido challenged a show-cause issued to it by the city government in that context, saying it is in violation of various fundamental and constitutional rights, and has been passed in violation of the principles of natural justice. 

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The Delhi High Court, which has listed Rapido's plea on August 22 before the registrar for completion of pleading, said in its May order: “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.” 

In its petition before the high court, Roppen Transportation Services Private Limited, which runs Rapido, said 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. 

The app-based aggregators like Uber and Rapido have faced similar bans in other states. In January, the Bombay High Court asked Rapido to suspend its services in Maharashtra or face cancellation of its license permanently, in a case related to the illegal plying of bike taxis in the state.

Rapido challenged the appeal. Following that, even the Supreme Court refused to grant relief to Rapido against the Maharashtra government's refusal to grant licence to it.

The apex court noted that amendments made to the Motor Vehicles Act in 2019 made it clear that aggregators cannot operate without a valid licence. A bench of Chief Justice DY Chandrachud and Justices PS Narasimha and Justice JB Pardiwala noted that Pune's Regional Transport Office had rejected its plea for licence on December 21.

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