The regulations under Section 43-A of the Motor Vehicles Act are valid, allowing the State Government to restrict permits for public safety.

1. The two petitioners made an application to the Regional Transport Authority for grant of a contract carriage permit in respect of mini bus. The Regional Transport Authority rejected the petitioner's application. The petitioners took up the matter in appeal under S.64 of the Motor Vehicles Act , 1939, before the State Transport Appellate Tribunal which affirmed the order of the Regional Transport Authority and dismissed the petitioners appeal by its order dated 3-10-1977. Aggrieved, the petitioners have by means of this petition under Art.226 of the Constitution challenged the order of the appellate Tribunal as well as that of Regional Transport Authority.

2. The Regional Transport Authority and the Appellate Tribunal rejected petitioners application for grant of contract carriage permit in pursuance of the directions of the State Govt. as contained in its notification dated June 1, 1976 issued under S.43 - A of the Motor Vehicles Act , 1939. The State Government under that notification, issued direction of a general character that no contract carriage permits shall be granted to private vehicles known as mini buses as it would not be in interest to grant such permit. The expression " Mini Bus" as defined in the notification means an omnibus which is constructed or adopted to carry not more than thirty - five persons excluding the driver. Since the petitioners had applied for contract carriage permits in respect of mini Buses having seating capacity of not more than thirty - five persons, the Regional Transport Authority as well as the State Transport Appellate Tribunal rejected the petitioners' application in view of the directions issued by the State Government.

3. S.43 of the Motor Vehicles Act , 1939, hereinafter referred to as the Act, empowers the State Government to issue directions to the State Transport Authority from time to time by notification in the Official Gazette regarding fixing of fares and freight for stage carriages, contract carriages and public carriages as prescribed under S.43(1) of the Act. S.43 - A was added to the principal Act by the U.P. Act 25 of 1972. S.43 - A was further amended by the U.P. Act 15 of 1976 which came into force on 1-5-1975. After the amendment S.43 - A reads as under : -
"43 - A Power of State Government to issue Directions to Transport Authorities : -
(1) The State Government may issue such directions of a general character as it may consider necessary or expedient in the public interest in respect of any matter relating to road transport to the S.T.A. or to any R.T.A. and such Regional Transport Authority shall give effect to all such directions.
(2) Without prejudice to the generality of the provisions of Sub-Section (1) such directions may be given in respect of any of the following matters, namely -
(a) the number of stage carriage or contract carriage permits that may be granted in respect of any route or area;
(b) the preference or the order of preference to be given to or the quota to be fixed for specially deserving categories such as ex - army personnel, educated unemployed persons, such persons holding driving licenses as are members of co - operative societies formed for passenger transport business, persons belonging to the Scheduled Castes and Scheduled Tribes;
(c) the procedure for grant of permits, and for selection from among the applicants, including selection by drawing of lots from among person belonging to the same category.
(3) Any direction under Sub-Sec. (1) may be issued with retrospective effect.
(4) Where any direction is issued under Sub-Sec