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Ordinary Permit with "Original" Rights : Legal Dispute

7th September 1951
Page 32
Page 32, 7th September 1951 — Ordinary Permit with "Original" Rights : Legal Dispute
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IS the British Transport Commission I bound to take over a haulage business when an ordinary permit, which was granted with the rights of an original permit, is revoked? This point was argued, last Friday, before the Transport Arbitration Tribunal. in London. The Road Haulage Executive sought to have the question determined in relation to an application by Victor and George Ostroumoff, trading as Johnson's Transport, Redditch, for the acquisition of their business by the 11.T.C. Mr. Patrick Browne, for the Commission, said that before November 28, 1946, Mr. Victor Ostroumoff held a con, tract-A licence which was used mainly in taking goods outside a 25-mile radius under contract to High-Duty Alloys, Ltd.

Original Permit Refused On July 29, 1949, the partnership applied for an original permit, which was refused. On February 10, 1950, they were granted an ordinary permit. The brothers Ostroumoff had since been informed that their ordinary permit would count as an original permit. They withdrew prior notice to the Commission seeking the acquisition of their business on the refusal of an original permit.,

The applicants say. that they applied for An ordinary permit within the required time, which was one month from July 1, 1949, but it was revoked on October 25, 1950.

Mr. Browne said the Commission was asking the Tribunal to determine whether, in these circumstances, it was required, under Secton 54 (1) of the Transport Act, to serve an acquisition order on the applicants because their ordinary permit had been revoked. He submitted that notice calling on the Commission to acquire the business could not be served, as the holders of the ordinary permit did not have this right.

Application for Acquisition Mr. Samuel Gibbon, for the applicants, claimed that notice seeking acquisition had been given when the original permit was refused. This was withdrawn, however, after a telephone message and two letters, in which a Ministry of Transport official told the partnership that their application for an ordinary permit had been approved and that the permit would be regarded as an original permit.

Mr. Gibbon held that these statements were binding on the Commission, and that the partnership was entitled to the rights accorded to the holder of an original permit. An original permit, he said, was ordered by the Act to be enforced "for the length of the licence" and bore no termination date, and the ordinary permit granted to the firm bore no such date. They therefore enjoyed at least this right of the holders of original permits.

Mr Montgomery-White, K.C., president, commented: "If they [the Cornmission) had wished to grant all the rights of-an original permit, they should

A30 have granted an original permit. It is only in the interval between your application for the original permit and the issue of an ordinary permit that you had this telephone conversation on which you say everything turns."

Mr. Gibbon recalled that there were letters to support the conversation.

In his reply, Mr. Browne claimed that, whatever the parties had arranged among themselves, it could not absolve the Tribunal from deciding whether section 54 (1) applied, or from deciding whether the permit was an original permit. He submitted that it might be held that the arrangement between the parties was a contract, and in that case the requirements of the Act would not have been fulfilled and the partnership's notice on the Commission would be The Tribunal will deliver judgment in October.

IR.H.A. REVISES RATES SCHEDULES

SCHEDULES of rates for the weekly and daily hire of goods vehicles, included in RH/D/20, have been completely revised and brought up to date by the Road Haulage Association. Copies of the new document may be obtained from the secretary of the Association, 146, New Bond Street, London, W.1, or from area offices, at 9d. each.

RH/D/20 first came into force in1943. It was originally compiled by members of the organization which later became the R.H.A. and was agreed with the Ministry of Transport as a basis for the hire of vehicles during the war. Although the Ministry no longer has an active interest in the operation of haulage vehicles, the schedules have been continued and are widely used by local authorities.

AGREEMENT ON COAL HAULAGE

AGREEMENT on a form of contract for the transport of miners' home coal has been reached between the Sheffield Area of the Road Haulage Association and the National Union of Mineworkers. One of the conditions of of the contract is that no haulier shall carry coal unless he is approved by the R.H.A. and the N.U.M.

The Union has undertaken to arrange for the supply of coal to be continuous, thus avoiding delays which have been the cause of complaints in the past, The Uaioti has also agreed to an increase of is. per ton in the rate for haulage.

BOMBAY NEEDS 40 BUSES rrENDE RS are required by Bombay 1 Electric Supply and Transport Undertaking, Electric House, Fort Bombay, 1, for the supply of 40 doubledecker bus chassis.

The specification calls for a wheelbase of 16 ft. 3 ins., and right-hand forward control. Chassis must be suitable for 8-ft.-wide bodies and a preference for hydraulic transmission is expressed. The closing date for the submission of tenders is September 25.