Motor Vehicles-Grant of stage carriage permit to Government under Ch. IV-Constitutional validity-Motor Vehicles Act, 1939 (4 of 1939), as amended by Act 100 of 1956, ch. IV. ss. 42, 47, ch, IVA, s. 68F(1) - Constitution of India, Arts. 19(2)(g), 14.

The petitioner, a registered co-operative society, carrying on the business of plying motor buses as stage carriages, had permits for four routes which were due to expire. The State applied for permits for all these routes under Ch. IV of the Motor Vehicles Act, 1939, as amended by Act 100 of 1956, and the petitioner applied for renewal of its own permits. The Regional Transport Authority rejected the petitioner's applications and granted those of the State. The petitioner's appeal to the State Transport Authority was rejected. But the High Court quashed the said orders under Art. 226 and directed a reconsideration of the matter. The State published a scheme under s. 68C, Ch. IVA, of the Act. The scheme was not however finalised. Thereafter the Regional Transport Authority, purporting to reconsider the matter as directed by the High Court, rejected the petitioner's applications for renewal and granted those of the State for permits. It was contended on behalf of the petitioner that in view of Ch. IVA of the Act, the State had no right to apply for permits except thereunder and the grant of permits on applications made under Ch. IV was, therefore, illegal and infringed the petitioner's fundamental rights under Arts. 19(1)(g) of the Constitution. It was further contended that the order violated Art. 14 as well.