The State Government has the power to allocate and reallocate inter-state public carrier permits by administrative orders until vested rights come into existence.

1. - On December 31, 1973 ten States and Union Administration of Northern Zone in India, namely Bihar, Harayana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Utter Pradesh, West Bengal, Chandigarh and Delhi arrived at an inter-state agreement in respect of conveying long distance goods traffic. The aforesaid reciprocal agreement between the ten States of Northern Zone was published in the Rajasthan Gazette dated February 25, 1974 under sub-section 3 B) of Section 63 of the Motor Vehicles Act, 1939 (hereinafter referred to as 'the Act') and came into force with effect from January 1, 1974. According to this agreement 200 public carrier vehicles of Rajasthan were to be allowed composite permits by competent Transport Authorities in the State, which would be valid on all national and State highways chosen for operation of such permits. The competent Transport Authority was also authorised to issue to each such permit holder an authorisation to ply his public carrier vehicle in the other States, which were signatories to the inter-state agreement. The Director of Transport, Rajasthan by his letter dated April 30, 1974/May 9, 1974 informed all the Regional Transport Authorities within the State of Rajasthan about the aforesaid inter-State Transport agreement and allocated 260 permits amongst the various Regional Transport Authorities in the State. The Jodhpur Regional Transport Authority was allotted 25 public carrier permits within the aforesaid quota of 200 permits available to Rajasthan for inter-state plying in the Northern Zone States. The Secretary, Regional Transport Authority, Jodhpur by a notification dated June 28, 1974 published in the Rajasthan Gazette dated July 25, 1974 invited applications for grant of 25 inter-state public carrier permits, in accordance with the reciprocal agreement between the ten Northern Zone States and in accordance with the allocation of such permits made by the Director of Transport, Rajasthan. The petitioner submitted an application in pursuance of the aforesaid notification issued by the Regional Transport Authority, Jodhpur. The petitioner has alleged that the Regional Transport Authority heard the matter on December 16, 1975 the Additional Transport Commissioner, Rajasthan informed the various Regional Transport Authority in the State that the earlier allocation of Northern Zone inter State public carrier permits made vide letter dated May 9, 1974 was suppressed and a fresh allotment of the inter State public carrier permits was made amongst the various Regional Transport Authorities in the State. According to the fresh allocation thus made, the Regional Transport Authority, Jodhpur was allotted only ten Northern Zone inter State public carrier permits. Then by its resolution dated March 15, 1975 (Annexure 3) the Regional Transport Authority, Jodhpur granted ten Northern Zone inter State public carrier permits and the applications of the remaining applicants for grant of such permits including that of the petitioner, were rejected on the ground that there was no more scope.

2. The argument of the learned counsel for the petitioner is that the Regional Transport Authority was not at all justified by reducing the number of inter State Public carrier permits fixed by it while inviting applications for grant of such permits and in granting lesser number of a permits that the number for which application were invited and considered. Learned counsel was, however, unable to show that there was a breach of any statutory provisions of the Regional Transport Authority proceeded to grant only ten Northern Zone inter State public carrier permits instead of 25 for which applications were invited by it, even at the time when the grant of such permits was made. It has nowhere been laid down in the Act that in the case of inter State public carrier permits, the Regional Transport Authority is bound to grant specific number of permits for which applications were invited by it. The provisio