The Karnataka High Court on Friday lifted the ban imposed by it on bike taxi services in Karnataka.
A Division Bench of Chief Justice Vibhu Bakhru and Justice CM Joshi allowed appeals filed by cab aggregators such as ANI Technologies (which owns OLA cabs), Uber, and Rapido, challenging a single-judge's directive to halt bike taxi services in Karnataka until the State frames rules for such operations.
The Bench has quashed the April 2025 single-judge order that imposed the bike taxi ban, opining that a blanket ban is not reasonable and violates the right to trade.
"In our view, a blanket prohibition on issuing contract carriage permits to motorcycles cannot be considered as a reasonable restriction within the meaning of Article 19(6) of the Constitution of India for several reasons … the blanket ban on the use of motorcycles as bike taxis is contrary to the scheme and provisions of the MV Act, which, as discussed above, permits inclusion of motorcycles as transport vehicles, contract carriages and public service vehicles," the judgment reads.
The Court further noted that even if the State says that these are maters of policy, it has not set out any policy with reflecting concrete grounds to assume that a blanket bike taxi ban would constitute a reasonable restriction in the interest of the general public.
Referring to the existing law, the Court held that motorcycles used for bike taxi services fall within the definition of “transport vehicles” under the Motor Vehicles Act, 1988. Therefore, the State government cannot refuse or deny permits to such vehicles on the ground that motorcycles are not transport vehicles.
It, however, noted that proper permissions are required to ply bike taxis. It added that bike taxi operators can file applications to get contract carriage permits to operate motorcycles as bike taxis.
While the State is free to examine all relevant aspects to decide whether to accept such applications, permits cannot be refused merely on the ground that the vehicle is a motorcycle, the Court said.
"Taxi owners are at liberty to file applications for registration of the vehicle as transport vehicle ... We direct the State government to consider such applications for registration of the owner of vehicle as transport vehicle and grant permission to operate as contract carriages. While concerned authority are not precluded from examining the relevant aspects, the same will not be denied on the ground that motorcycles cannot be operated as transport vehicle or contract carriages. The regional transport authority may impose such conditions as it may consider necessary ... in accordance with law, having regard to Section 74(2) MV Act. Aggregators are also at liberty to file fresh applications...and in the event such applications are filed, they will be considered in accordance with law and observations of this court. Impugned Order is set aside and Appeals are allowed in the aforesaid terms," the Court's ruling said.
By an April 2, 2025 order, a single-judge Bench comprising Justice B Shyam Prasad had ordered all bike taxi services to be halted in Karnataka within six weeks.
At the time, the Court had explained that unless the State decides to make a policy change and frames rules and guidelines to permit bike taxis, such vehicles cannot be operated.
The six-week deadline was later extended on a request by affected bike operators, who also filed appeals challenging the single judge's April order before a Division Bench of the Court.
Some individual bike taxi drivers and the Bike Taxi Welfare Association also joined in filing these appeals, which were allowed today by the Division Bench.
During hearings of the matter, the Bench had repeatedly questioned the State on its delay in implementing effective rules to regulate bike taxi operations in Karnataka, adding that the Court was inclined to life the ban if such rules were not promptly put in place.
In today's verdict, the Court also observed that the existing regulatory framework applicable to taxis requires reconsideration and suitable amendment, to factor in the regulation of bike taxi services.
Senior Advocates Uday Holla, along with Advocate Nishanth AV appeared for Rapido.
Senior Advocate Sreenivasa Raghavan, briefed by Advocates Sankeerth Vittal and Anupama Hebbar represented Uber.
Senior Advocate Arun Kumar appeared for Ola.
Senior Advocate Dhyan Chinnappa, briefed by Advocate Madhur A Kalyanshetty appeared for certain individual bike taxi drivers.
Senior Advocate Shashank Garg along with Advocate Girish Kumar BM appeared for the Bike Taxi Association.
The State of Karnataka was represented by Advocate General Shashi Kiran Shetty.
[Read Judgment]