The Karnataka High Court has refused to stay the order halting bike taxi services in the state. A single judge had earlier extended the deadline to wind up operations until June 15, giving temporary relief to operators.
Karnataka High Court on Friday refused to stay a single-judge decision that ordered a suspension of bike taxi operations in Karnataka until the State formulates a comprehensive policy to regulate them.
The Bench, comprising Acting Chief Justice V. Kameswar Rao and Justice Sreenivas Harish Kumar, stated that they would review the case on its merits on June 24.
The Court indicated that it might have considered a stay on the single-judge ruling if the State had indicated it was in the process of creating new regulations and there was a delay on their part.
However, since the State had decided against permitting bike taxis, the Bench declined to stay the single-judge’s order, acknowledging that the issue affects the livelihoods of bike taxi drivers and serves the public interest.
Justice B. Shyam Prasad, On April 2, mandated that all bike taxi services cease operations in Karnataka within six weeks. The Court clarified that bike taxis could not operate unless the State made policy changes and established rules and guidelines for their operation. The six-week deadline for halting bike operations was set to expire in May.
Following this, affected bike taxi operators, including Rapido, as well as OLA and Uber (who were looking to enter the bike taxi market), requested an extension of this deadline.
The single-judge agreed and subsequently extended the deadline for concluding bike taxi operations until June 15.
Now, the April 2 ruling itself has been appealed. ANI Technologies (which owns OLA) filed its appeal on June 11, while Uber filed its appeal on June 2.
Senior Advocate Dhyan Chinnappa, representing the appellants, urged the Division Bench to stay the single-judge order. He argued that bike taxis could operate under the existing framework of the Motor Vehicles Act, 1988.
He stated,
“According to me, no new rules are required…The Central government has said that two-wheeler motor vehicles can be operated as transport vehicles. This has been recognized by the single judge…State rules are (already) framed on the basis of which four-wheelers are operating (as taxis)…On the face of it applies to two-wheelers also…The definition of ‘motor cab’ under the MV Act is anything that carries less than 6 passengers. Two-wheeler is also a motor cab,”
Representing the Karnataka government, Advocate General Shashi Kiran Shetty, responded,
“Then they can get truck also under this!”
The Advocate General opposed any interim relief for the appellants, noting that they had previously been operating bike taxis based on an interim order for years.
He asserted,
“For 5 years, they are operating without a permit,”
Chinnappa countered,
“Till next date only (grant interim relief), we will make out a case; Court may independently examine it,”
The AG maintained,
“By virtue of court order, they can’t run,”
Chinnappa insisted,
“For four years, we have been running,”
The AG replied,
“That’s the problem,”
Ultimately, the Court declined to issue an express stay on the single-judge ruling and instead sought responses from the State authorities by formally issuing them notice. The AG assured that the State would submit its written arguments by June 20, with the next hearing scheduled for June 24.