The Inter-State Transport Commission has jurisdiction over disputes arising from transport operations on inter-State routes, requiring permits for commercial entities.

1.The State of Uttar Pradesh filed these petitions under Art.226 of the Constitution against the order dated January 17, 1966 of the Inter - State Transport Commissioner, New Delhi and the order dated August 26, 1967 of the Inter - State Appellate Tribunal, New Delhi.

2. The State of Uttar Pradesh, through its Transport Department, plies stage carriages on a number of routes which lie partly within Uttar Pradesh and partly within Delhi. The State Transport undertaking is referred to as the U. P. Government Roadways. In respect of some of the routes, the Transport Department has been plying the vehicles from as long ago as 1950 or even from before. Originally, they were plied pursuant to executive orders issued by the State Government. Subsequently, the U. P. Legislature enacted the U. P. State Road Transport Act, 1950 under which the operation of the vehicles of the State Transport undertaking on those routes was validated. The Act was struck down by the Supreme Court in Saghir Ahmad v. State of U. P. , AIR 1954 SC 728 . The U. P. Legislature then enacted the U. P. Road Transport Services (Development) Act, 1955. It came into force with retrospective effect from June 18, 1951, and under S.19 and S.20 the plying by the State Transport undertaking on the routes was validated.

3. The routes covered by this petition and so validated are the Meerut - Delhi, Dehradun - Delhi, Hardwar - Delhi, Moradabad, Garhmukteshwar Hapur - Delhi, Agra - Delhi via - Bulandshahr and Mathura - Delhi routes, Except for the last route, ten kilometers of each route lie in the State of Delhi. In the case of the Mathura - Delhi route, nineteen Kilometers lie in the State of Delhi. After the enactment of the U. P. Act of 1955, a scheme for the operation of the U. P. Government Roadways on the Bulandshahr - Delhi route to the complete exclusion of private operators was finalised under that Act on September 29, 1956. Ten kilometers of this route lie in the State of Delhi. The petitioner says that the U. P. Government Roadways have been operating on some of the aforesaid inter - State routes with the concurrence of the Delhi State authorities without obtaining any permits or counter - signatures.

4. The Motor Vehicles (Amendment) Act, 1956 was enacted by Parliament and came into force on February 16, 1967. So far as is relevant here, it inserted two distinct sets of provisions in the Motor Vehicles Act . S.63 - A to S.63 - C were added in Chapter IV and provided for an Inter - State Transport Commission having jurisdiction over areas or routes common to two or more States. Chapter IV - A, consisting of S.68 - A to 68 - I, provided for the preparation and finalisation and implementation of schemes of road transport services by State Transport undertakings. One of the schemes provided for the operation of the U. P. Government Roadways on the Saharanpur - Delhi route, ten kilometers of which lie in the State of Delhi. The scheme received the approval of the Central Government and was notified under S.68 - D (3) on September 29, 1959.

5. The U. P. Government Roadways has been operating upon the routes mentioned above without permits and, therefore, without counter - signatures on any permits. It seems that it is doing so relying on that it alleges to be an order dated August 5, 1958 under S.10 (1) (a) of the U. P. Act of 1955 which purports to exempt the U. P. Government Roadways from obtaining permits and refers in this connection to S.42 (3) (a), of the Motor Vehicles Act . Reliance is also placed on R.70 - A of the Motor Vehicles Rules, added by a Notification dated February 29, 1960, and purporting to have been made under S.68 read with S.42 (3) (f). R.70 - A reads :
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