1981 (3) TMI 252 - SC - Indian Laws

Summary

Issues involved: Challenge to the curtailment of permits u/s Motor Vehicles Act, 1939 due to the implementation of Scheme No. 50-M by Madhya Pradesh State Road Transport Corporation.

Validity of the Scheme:
- Petitioners challenged the validity of the scheme, the procedure followed for approval, and the consideration of objections.
- High Court rejected all contentions regarding the scheme's validity.
- The High Court's reasons for rejecting the contentions were deemed convincing by the Supreme Court.

Discrimination in Permit Curtailment:
- Petitioners' permits were curtailed while other permit holders in the same class were not affected.
- Allegation of hostile discrimination without valid criteria for selection.
- Corporation and State Government failed to justify the discrimination.
- Reference made to Ramnath Verma v. State of Rajasthan regarding discrimination in permit cancellations.

Error in Permit Information:
- Regional Transport Authority omitted valid permit details, leading to discrimination in permit curtailment.
- High Court and Special Secretary upheld the scheme despite the error.
- Discrimination acknowledged as arising from oversight, not intentional.

Rectification of Discrimination:
- Supreme Court aimed to rectify the discrimination caused by the oversight.
- Rejecting the entire scheme would be counterproductive to nationalization efforts.
- Directs quashing of permit conditions for petitioners until all operators are treated equally.
- Order not to be construed as guaranteeing permit renewal for petitioners.

Conclusion:
- Special leave petitions and writ petitions allowed with no costs.
- Petitioners entitled to operate on overlapping routes without restrictions, subject to corridor restrictions without discrimination.