Case Note & Summary
The case involved a dispute regarding the curtailment of stage carriage permits held by the petitioners under the Motor Vehicles Act, 1939, following the implementation of Scheme No. 50-M by the Madhya Pradesh State Road Transport Corporation. The scheme reserved certain routes for exclusive operation by the Corporation, leading to the curtailment of the petitioners' permits on overlapping routes. The petitioners challenged this action, claiming it resulted in hostile discrimination as other operators in similar situations were not subjected to the same restrictions. The High Court rejected most of the petitioners' contentions, but the Supreme Court focused on the issue of discrimination arising from the oversight of the Regional Transport Authority. The court noted that while the error was unintentional, it led to unequal treatment among operators, violating their fundamental rights. The court emphasized the need for rectification rather than rejection of the entire scheme, directing that the curtailment orders be quashed and that all operators be treated equally. The court clarified that the order would only apply if the petitioners held valid permits, and any corridor restrictions imposed must not result in further discrimination. The petitions were allowed with no order as to costs.
Headnote
A) Constitutional Law - Equal Protection - Hostile Discrimination - Motor Vehicles Act, 1939, Section 68-C - The Regional Transport Authority's error in not including all valid permits resulted in discrimination among operators. The court held that such discrimination, even if unintentional, must be rectified to uphold equal protection under the law (Paras 237-238).
Issue of Consideration
Whether the curtailment of certain operators' permits under the Motor Vehicles Act, 1939 constituted hostile discrimination.
Final Decision
The Supreme Court allowed the special leave petitions and writ petitions, quashing the curtailment orders and directing equal treatment for all operators with valid permits, while clarifying that any corridor restrictions must not result in further discrimination.
Law Points
- Discrimination
- Equal Protection
- Administrative Oversight
- Motor Vehicles Act
- 1939
- Permits
- Nationalisation of Transport



