Judgement

SHAH, J.:- The Delhi Municipal Corporation took over the organisation of the Delhi Transport Authority established under Section 3 of the Delhi Transport Authority Act 13 of 1950, and administered it in the name of Delhi Transport Undertaking - hereinafter called D. T. U. Even though the jurisdiction of the Delhi Municipal Corporation extends only to the municipal area, by Section 288 of the Act 66 of 1957 it is authorised to set up transport services for passengers and goods in the entire Union Territory of Delhi and even outside by virtue of Sections 288 and 292 of the Act.

2. The respondent Company held in 1960 permits on three routes - (1) Delhi - Bawana - Narela, (2) Delhi-Bawana-Auchandi and (3) Delhi-Bawana-Kharkhoda. Since May 9, 1956, the Delhi Transport Authority and its successor D. T. U. were holding stage carriage permits valid for certain areas but not including the routes on which the respondent Company held permits to ply its stage carriages. On October 19, 1959 the D. T. U. addressed a letter to the Secretary State Transport Authority, Delhi, stating that it considered "it necessary to approach x x with the request to place the matter before State Transport