Why Did the Karnataka High Court Extend the Deadline for Bike Taxi Services?

Bengaluru, June 13 (NationPress) The Karnataka High Court has recently declined to suspend the directive from a single-judge bench regarding the cessation of bike taxi services within the state, while simultaneously extending the deadline to June 15.

This ruling was delivered by a division bench led by Acting Chief Justice V. Kameshwara Rao, alongside Justice Sreenivas Harish Kumar.

Initially, on April 2, the single-judge bench, presided over by Justice B. Shyam Prasad, mandated that bike taxi operations must conclude within six weeks, asserting that bike taxi aggregators are prohibited from functioning in Karnataka unless the state government issues the necessary guidelines under Section 3 of the Motor Vehicles Act, 1988, along with the required regulations.

The division bench was addressing a petition from affected stakeholders, including Roppen Transportation Services Private Limited, which operates Rapido, ANI Technologies (owner of Ola), and Uber Technologies (operating Uber), who sought an extension of the cessation deadline for bike taxi services. They indicated that the matter would be thoroughly reviewed, and the merits of the case will be discussed on June 24.

The court also mentioned that it is contemplating a stay on the order mandating the cessation of bike taxi services, contingent on whether the state government has initiated the process for establishing rules.

Lawyers representing the bike taxi aggregators argued that bike taxis can legally operate under the current framework of the Motor Vehicles Act, 1988, claiming that regulations for cabs should also apply to two-wheelers.

However, Advocate General Shashi Kiran Shetty, who represented the state, opposed this argument, stating that while two-wheelers might fall under the Motor Vehicles Act, trucks could also be included. He further asserted that bike taxis have been functioning without permits for the past five years.

The court issued a notification to state government officials, and the Advocate General informed the court that written submissions from the state would be provided by June 20.

Previously, Justice Prasad's order directed bike aggregators, including Rapido, to cease operations in the state within a six-week timeframe, mandating that the state government and the Transport Department enforce compliance with this deadline.

The petitions filed by Rapido, Ola, and Uber, requesting legal acknowledgment of bike taxi operations and the authorization to register such vehicles were dismissed by the bench, which noted that it cannot compel the state to formulate regulations or to classify non-transport vehicles as transport vehicles.

As emphasized by the bench, "The Transport Department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate government regulations are established.”

Additionally, Rapido sought an injunction against government interference with its operations.