The Calcutta HC declined to stay the guidelines for regulating cab aggregators issued by the West Bengal government

Case: Uber India Systems Private Limited vs State of West Bengal

Bench: Justice Sabyasachi Bhattacharyya

The Calcutta High Court declined to stay the West Bengal government's guidelines for regulating cab aggregators like Ola and Uber. The single-judge concluded that the guidelines for providing a refresher course for drivers are not impractical in light of the surging prices charged by cab aggregators and the cancellations of rides by drivers. 

A petition was filed by Uber India challenging the State's notification of the guidelines because it had not followed the proper procedure. The guidelines were found to be excessive harshness, oppression, onerousness, unreasonableness, and discrimination in several provisions.

As per the new guidelines, the aggregators emphasised that the drivers would be required to undergo various onerous tests such as the training programmes and satisfy requirements that other cab drivers rendering the same service would not have to undergo. 

It has been argued that in addition to putting the burden of ensuring that all pending vehicle-related cases are resolved within two months on aggregators, the guidelines also require aggregators to share confidential data with other aggregators and upload confidential algorithms to their websites. The guidelines have been viewed as unworkable since they place a high level of responsibility on aggregators. 

On the other hand, the State defended the guidelines, pointing out that Ola cabs and other aggregators have already applied for licenses (under the guidelines) and several of these provisional licenses have already been issued to their drivers, making these guidelines workable. 

The bench, after considering the material opined that the State followed the due procedure and consulted stakeholders. The guidelines substantially follow the Central government guidelines and minor divergences from the government guidelines do not cause any hindrance to the functioning of the aggregators.

The aggregator guidelines do not form an impossible code of conduct, in the functioning of Uber cabs.