Case Note & Summary
The dispute arose from the cancellation of permits held by appellants, who were permit holders of stage carriages operating on inter-State routes between Karnataka and Tamil Nadu. The appellants contended that their permits should not have been cancelled as the notification under the Anekal Pocket Scheme did not exclude inter-State operators. The Karnataka High Court had previously upheld the cancellation, leading to the appeals before the Supreme Court. The core legal issue was whether the notification under Section 68-C of the Motor Vehicles Act, 1939, which excluded private operators from notified routes, also applied to inter-State operators. The court analyzed previous judgments, including Adarsh Travels Bus Service & Anr. v. State of U.P. & Ors., and reiterated that once a scheme is published, no person other than the State Transport Undertaking may operate on the notified route unless expressly authorized by the scheme. The court concluded that the absence of express authorization in the scheme meant that inter-State operators were also excluded from operating on the notified intra-State route. The appeals were dismissed, and the court reiterated the need for the State to take steps to avoid public inconvenience. The decision emphasized the importance of clear legislative frameworks in transport regulation.
Headnote
A) Motor Vehicles Act - Notification of Route - Exclusion of Operators - Notification under Section 68-C excludes private operators from operating on notified routes - Court held that no private operator could operate unless authorized by the Scheme itself, thus affirming the cancellation of permits. (Paras 962-963).
Issue of Consideration
Whether notification of a route under Section 68-C of the Motor Vehicles Act, 1939 excluding completely or partially private operators from plying on the notified route results in excluding the operators of inter-State route as well.
Final Decision
The Supreme Court dismissed the appeals, affirming the cancellation of permits held by inter-State operators due to the exclusionary nature of the notification under Section 68-C of the Motor Vehicles Act, 1939.
Law Points
- Motor Vehicles Act
- 1939
- Section 68-C
- Notification of route
- Exclusion of private operators
- Inter-State route operators
- Scheme interpretation


