Judgment

SIKRI, J.: - This appeal by special leave is directed against the judgment of the High Court of Mysore dismissing Writ Petition No. 1112 of 1969 filed by T. N. Raghunatha Reddy, appellant before us, against the Mysore State Transport Authority. The appellant had prayed to the Court to quash the order/endorsement of the respondent, dated March 5/10, 1969.

2. In order to appreciate the points raised before the High Court and before us it is necessary to give a few facts. In 1959 the States of Andhra Pradesh and Mysore appear to have entered into a reciprocal arrangement regarding inter State road transport. In exercise of the powers conferred by sub-section (1) of Section 43 of the Motor Vehicles Act, 1939 (Central Act IV of 1939) the Government of Mysore issued a direction to the State Transport Authority to take necessary action to give effect to the above arrangement. On October 2, 1964 the State of Mysore published under Clause (d) Section 68-C of the Motor Vehicles Act, 1939 - hereinarter referred to as the Act - what is called the "Kolar Scheme". Clause (d) of the scheme reads as follows:

"(d) Whether the services are to be operated by the State Transport Undertaking to the exclusion,complete or partial of other persons or otherwise. The State Transport Under taking will operate services on all the routes to the complete exclusion of other persons except that:-

(a) that existing permit holders on the inter- State routes may continue to operate such inter- State routes, subject to the condition that their permit shall be rendered ineffective for the overlapping portions of the notified routes."

3. It is the case of the appellant that in March 1967 on a proposal made by the State of Mysore, the States of Andhra Pradesh and Mysore entered into an agreement for countersigning a second inter-State permit on the route Cuddapah to Bangalore, and on April 4, 1967, the Transport Commissioner of Andhra Pradesh showed willingness to countersign a second permit. On April 13, 1967 the Transport Commissioner of Mysore State expressed willingness to countersign the second permit . It is further the case of the appellant that although the State of Andhra Pradesh carried out the agreement and counter signed the second permit on the Bangalore Cuddapah route in favour of a Mysore operator the Mysore State refused to carry out this agreement. On January 25, 1968 the Kolar Scheme as approved was published in the Gazette under Section 68- D (3) of the Act. On March 1, 1968 the Mysore undertaking applied under Section 68-F (1) to operate buses from January 1, 1968 or a later date. On April 25, 1968 the Regional Transport Authority Cuddapah issued a permit to the appellant for Cuddapah-Bangalore route an inter-State route, under Section 63 of the Act. This permit is valid uptill May 13, 1971. On May 16, 1968 the appellant applied to the State Transport Authority, Mysore, for counter signature under Section 63 of the Act, and on May 20, 1968 the Transport Commissioner Andhra Pradesh requested the Transport Commissioner Mysore to countersign the appellant s permit under the agreement.

4. In the meantime the Kolar Scheme had been challenged in the High Court and the High Court stayed the Kolar Scheme pending the decision of the writs.

5. The application of the appellant, dated May 16, 1968 for the grant of counter signature of the permit came up for consideration before the Mysore State Transport Authority on July 6, 1968. The learned counsel for the appellant urgd before it that "countersignature may be given with any timings found suitable by the Authority for their service which is an express service and does not stop in all stations as the shuttle services of the (in the case of ) objectors." He also urged that "countersignature may be considered and granted as there is a stay order of the High Court of Mysore in W. P. No. 1390 of 1968 against the operation of the Kolar Nationalisation Scheme and that his permit was granted before the Scheme