JUDGMENT

BHAGWATI, J.:—This appeal by special leave raises a short but interesting question of law relating to the interpretation of certain provisions of the Motor Vehicles Act 1939 (hereinafter referred to as the Act). The question is whether Section 47, sub-section (3) of the Act is attracted when an application is made by the holder of a permit for extension of the route for which the permit has been granted to him. In order to appreciate the question, it is necessary to state a few facts giving rise to the appeal.

2. The appellants are a partnership firm and at all material times they held a stage carriage permit granted to them by the Regional Transport Authority for the route Dabra-Karera via Lodi Mata extended up to Gwalior. It appears that on 22nd June, 1978 this route for which the permit was held by the appellants was modified at the request of the appellants and the portion of the route from Karera to Shivpuri was deleted. Thereafter by a Notification dated 4th Aug., 1978 certain routes were nationalised under Scheme No. 11-M which came into force with effect from 25th Sept., 1978 and under Cl. 7 (b) of this Scheme, the portion of the routes from Shivpuri to Satanwara wa