1. On June 30, 1967, the Regional Transport Authority, Chittoor, in the State of Andhra Pradesh, granted a permit to respondent 3 to operate his stage carriage on an inter - State route between Tumkur and Thirupathi which is in the State of Mysore. Part of that route between Mulbagal and Doddaballapura which lies within the State of Mysore, became a notified route under a Scheme called the Kolar Scheme which was published on January 25, 1968, after it received approval under S.68 - D of the Motor Vehicles Act.

2. Meanwhile, respondent 3 had made an application to the State Transport Authority, Bangalore, on September 5, 1967, for its counter - signature under S.63 of the Motor vehicles Act in respect of the route which was within the Mysore State. That counter - signature became necessary by reason of the provision contained in S.63(1) of the Act that a permit granted by one State shall have no validity in another State unless it is counter - signed by the concerned Transport Authority of that State.

3. But, the Mysore State Transport Authority by an order made by it on March 2, 1968, refused counter - signature on the basis of the exclusion of private operators from the nationali