JAGAT NARAYAN, C.J.—This is a writ petition under Art.226 of the Constitution by one Noor Mohammed challenging the validity of a notification No.Tr. S. T. A./69/31743 dated January 27, 1969 issued by the State Transport Authority, Rajasthan, Jaipur (Annexure 7).

2. The petitioner submitted an application to the Regional Transport Authority, Jaipur, for the grant of a non-temporary stage carriage permit on Jaipur-Rohtak route. The application was published in the official gazette dated May 2, 1968 and objections were invited within 30 days. No objection was filed by anyone against the application. The matter came up for consideration in the meeting of the Regional Transport Authority, Jaipur, held on May 3, 1969. Besides the applicant, the State Road Transport Corporation (hereinafter to be referred as the Corporation) and 2 other persons had applied for the grant of the permit on this route. These 2 other persons were absent. Only the petitioner and the General Manager of the Corporation were present. The Corporation had not paid the prescribed permit fee. The Regional Transport Authority, however, did not consider the application of the petitioner on account of the notification dated January 27, 1969, published in the Rajasthan Rajpatra, dated 6-2-1969, which runs as follows—

"No. Tr. S. T. A./69/31743.—An extract copy of Resolution No. 2 of the Proceedings of the 66th meeting of the State Transport Authority, Rajasthan, Jaipur, held on 2nd and 3rd January, 1969, is notified for information of all concerned, which is as under;

"In exercise of the powers under sec. 44 sub-sec. 3(b) of the Motor Vehicles Act the State Transport Authority, Rajasthan resolves that with effect from the date of the publication of this resolution in the official Gazette, (1) the State Transport Authority shall hereinafter grant all types of permits, renewals, transfers etc. on inter regional and Interstitial routes. In respect of those routes State Transport Authority shall perform all the duties higher to being performed by the Regional Transport Authority?

(2) All types of permits on inter-statal routes shall be countersigned by the S.T.A."

3. There was an agreement between the States of Rajasthan and Hariyana about the grant of Inter State permits. For giving effect to that agreement, the State Government issued a direction under S.43 (1) to the State Transport Authority. This direction is contained in Notification dated December 14, 1965 (Annexure 4). Under this notification, the Regional Transport Authorities were to invite applications for stage carriage or public carrier permit and to select applications for the grant of the permit keeping in view the conditions laid down by the Inter State Transport Commission in this behalf. The cases of these selected applicants were then to be referred to the Transport Authorities of the other States concerned for granting countersignature under the agreement.

4. The Notification dated January 27, 1969 (Annexure A. 7) issued by the State Transport Authority has been attacked on two grounds. Firstly, it is contended the State Transport Authority was bound to obey the directions issued by the State Government under sec. 43(1) with regard to the grant of Inter State permits. Secondly, it is contended that the State Transport Authority has no paper to grant a permit where there is Regional Transport Authority functioning.

5. Having heard the learned counsel for the petitioner and the learned Additional Advocate General we are of opinion that both these contentions must be upheld. Sec. 43(l)(iv) gives power to the State Government to issue directions to the State Transport Authority regarding matter which may appear to the State Government necessary or expedient for giving effect to any agreement entered into with any other State Government relating to the regulation of motor transport generally. It was in the exercise of this power that the State Government issued the directions contained in its notification dated D

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