( 1 ) THE petitioner Jain Transport and General Trading Company and a large number of other persons, who are petitioners in the connected writ petitions, carried on the business of plying motor vehicles and stage carriages on hire in the State of Uttar Pradesh. Their rights have been regulated under the Motor Vehicles Act of 1939. The petitioner held permit Nos. 8-A and 9-A under the Act for running stage carriages on Aligarh-Iglas-Mathura route. These permits were granted to the petitioner in the year 1954 and under the provisions of the Motor Vehicles Act were valid upto August 1957. Sometime in the year 1947 the State Government conceived the idea of running their own buses on the public thoroughfares. In the beginning they decided to run as competitors with private bus owners but later on they decided to run in exclusion of private bus owners. This was sought to be done with the aid of the Motor Vehicles Act. Under the provisions of Section 42 (3) of the Motor vehicles Act, the State Government had not to obtain permits for their own vehicles and could run any number of carriages they liked. In order to carry out this object of State monopoly the transport Authorit