Case Note & Summary
The dispute arose from the rejection of applications for temporary permits by the State Transport Authority for the Khurja-Pahasu-Chhatari-Dabai-Rajghat-Ramghat-Atrauli route. The appellants, who sought these permits, contended that the State Transport Authority erred in denying their applications after the U.P. State Road Transport Corporation was granted only three permits out of seven available. The legal question centered on the interpretation of sections 68-F(1), 68-F(1-A), and 68-F(1-C) of the Motor Vehicles Act, 1939, particularly whether the State Transport Authority could grant permits to other applicants when the Corporation did not apply for all available permits. The appellants argued that the State Transport Authority should have considered their applications for the remaining four permits. The court analyzed the statutory provisions and concluded that the State Transport Authority had the obligation to grant permits to the Corporation only if it applied for all available permits. Since the Corporation applied for only three permits, the court held that the State Transport Authority was required to consider the applications from the appellants for the remaining vacancies. The court emphasized that the primary consideration must be the service available to the travelling public and that the authority must not overlook this aspect. Consequently, the appeal was allowed, and the orders of the lower authorities were set aside, directing the State Transport Authority to reconsider the applications for the remaining permits. No costs were awarded in this case.
Headnote
A) Motor Vehicles Act - Temporary Permits - Authority's Power to Grant Permits - Motor Vehicles Act, 1939, Sections 68-F(1), 68-F(1-A), 68-F(1-C) - The court held that if the Corporation applies for fewer permits than available vacancies, the State Transport Authority must consider applications from other eligible persons for the remaining permits, ensuring public transport service is maintained. (Paras 985-986).
Issue of Consideration
Whether the State Transport Authority had the power to grant temporary permits to applicants other than the Corporation when the Corporation applied for fewer permits than available vacancies.
Final Decision
The Supreme Court allowed the appeal, set aside the orders of the State Transport Authority, the State Transport Appellate Tribunal, and the High Court, and remitted the matter to the State Transport Authority to consider the applications of the appellants for the remaining four vacancies.
Law Points
- Interpretation of statutory provisions
- temporary permits
- public interest
- preferential treatment
- service to travelling public



