Judgment

HEGDE, J.:- The appellant is a transport operator. He applied for and obtained a permit from the R.T.A., Chitradurga for the inter-state route from Chitradurga in Mysore State to Srisaila in Andhra Pradesh, on January 18, 1964. Even before this permit was issued to him, the Government of Mysore had notified a draft scheme under S. 68 (C) of the Motor Vehicles Act, 1939 (to be hereinafter referred to as the Act) providing for the operation of the trunk routes by the State Transport Undertaking in the Bellary District. M.S.R.T.C., a State Transport Undertaking and other rival claimants objected to the issue of the permit in question to the appellant but their objections were overruled by the R.T.A. Chitradurga. Aggrieved by that order M.S.R.T.C. and other rival claimants took up the matter in appeal to the Mysore State Transport Appellate Tribunal. Meanwhile on April 18, 1964, the Government issued a notification under S. 68D (3) of the Act approving the draft scheme earlier issued by it. That scheme is known as "Bellary Scheme". One of the clauses in the scheme provides:

"The State Transport Undertaking will operate services on all the routes to the complete exclusion of othe