Judgment

BHAGWATI, J.: - This appeal, brought by special leave, relates to grant of a stage carriage permit for the route Pollachi to Tiruppur via Kamanaickenpalayam and Pallandam in Coimbatore District. It appears that a traffic survey had been conducted during the period from 1st June, 1966 to 15th July, 1966 on various routes in Coimbatore District and it was found as a result of this traffic survey that the load on the route Pollachi to Tiruppur via Kamanaickenpalayam and Pallandam was heavy and it was therefore, decided to introduce one more bus on this route. The Regional Transport Authority accordingly issued a notification under Section 57, sub-section (2) of the Motor Vehicles Act, 1939 inviting applications for the grant of a stage carriage permit for one additional bus on this route. There were forty-two applications received in response to this invitation. The Regional Transport Authority considered these applications as also the representations received in connection with them and by an order dated 4th November, l967 granted a stage carriage permit to the appellant to ply an additional bus on the route. The first respondent being aggrieved by the refusal of the Regional Transport Authority to grant a stage carriage permit to him preferred an appeal to the Additional State Transport Appellate Tribunal under Section 64 (1) (a) of the Act. At the bearing of the appeal, the first respondent raised, for the first time, a contention that the Regional Transport Authority had no jurisdiction to proceed with consideration of the applications under Section 48 (1) read with Section 57 (3), since no prior order limiting the number of stage carriages for which permits might be granted on the route was made under Section 47 (3). The Tribunal allowed this contention to be raised, though it had not been taken before the Regional Transport Authority, and taking the view that it was well founded, held that no valid order limiting the number of stage carriages for which permits might be granted on the route had been made by the Regional Transport Authority under Section 47 (3) before considering the applications and representations in connection therewith and the order made by the Regional Transport Authority granting stage carriage permit to the appellant was, therefore, without jurisdiction. On this view, the Tribunal by an order dated 11th June, 1968 allowed the appeal of the first respondent and setting aside the order of the Regional Transport Authority granting stage carriage permit to the appellant, remitted the matter to the Regional Transport Authority "for being proceeded with in accordance with law". The appellant challenged the validity of this order made by the Tribunal by a petition filed under Article 226 of the Constitution in the High Court of Madras. The petition came up for admission before a Single Judge of the Madras High Court who summarily rejected the petition. This led to the filing of a Letters Patent appeal before a Division Bench of the Madras High Court. The Division Bench considered various decisions of this Court and held that it was not competent to the Regional Transport Authority to exercise the power to grant stage carriage permit under Section 48 (1) read with Section 57 (3) without first fixing the limit of the number of stage carriages for which permits might be granted on the route under Section 47 (3) and since in the present case there was no order under Section 47 (3), the Regional Transport Authority had no power to grant stage carriage permit under Section 48 (1) read with Section 57 (3) and the order granting stage carriage permit to the appellant was bad as rightly held by the Tribunal. The Division Bench accordingly upheld the order passed by the Tribunal and dismissed the appeal. The appellant thereafter preferred the, present appeal after obtaining special leave from this Court.

2. The question arising in this appeal lies in a narrow compass and stands concluded by a recent decision of