JUDGMENT

MADON, J. :— This appeal has been filed by the Karnataka State Road Transport Corporation pursuant to a certificate granted by the Karnataka High Court against its Judgment and Order in Writ Appeal No. 949 of 1974 on the following two questions of law :-

"1. Whether the conditions of a permit can be varied so as to increase the number of trips and/or the number of vehicles allowed to be operated under that permit?

2. Whether the conditions of a permit held by an existing operator on an inter-State route exempted under the Kolar Pocket Scheme, can be varied so as to allow an increase in the number of vehicles operating under that permit?"

2. Before embarking on a discussion of the above questions, it will be convenient to relate the facts which have given rise to this appeal. On February 2, 1966, the first respondent, B. A. Jayaram, had been granted by the Regional Transport Authority, Bangalore, a stage carriage permit on the inter-State route Cuddapah in the State of Andhra Pradesh to Bangalore in the State of Karnataka for one trip only and a stage carriage permit No. 20/65-66 in respect of this route was issued to him on Mar. 16, 1966. This permit was countersigned by the