Judgment

S. K. DAS, J.: (On behalf of himself, Kapur and Sarkar, JJ.) These are three consolidated appeals which arise from the judgment and order of a Division Bench of the Rajasthan High Court dated August 9, 1957. They have been preferred to this Court on the strength of a certificate granted by the said High Court under Art. 132 of the Constitution certifying that the cases involve a substantial question of law as to the interpretation of Art. 301 and other connected articles relating to trade commerce and intercourse within the territory of India, contained in Part XIII of the Constitution. These appeals were originally heard by a Bench of five Judges and on April 4, 1961 that Bench recorded an order to the effect that having regard to the importance of the constitutional issues involved and the views expressed in the decision of this Court in Atiabari Tea Co. Ltd. v. State of Assam, (1961) 1 SCR 809: the appeals should be heard by a larger Bench. The appeals were then placed before the learned Chief Justice for necessary orders, and on his orders have now come to this Bench of seven Judges for disposal. As the constitutional issues involved affect the States of the Union, notices were issued to the Advocates-General concerned. A notice was also issued to the Attorney General on behalf of the Union of India. The States of Andhra Pradesh, Assam, Bihar, Gujarat, Madras, Maharashtra, Orissa, Punjab, Uttar Pradesh and West Bengal intervened and were represented before us either through their respective Advocate-General or other Counsel. M/s. M. A. Tulloch & Co. Andhra Pradesh Motor Congress and Naxeeria Motor Service, Nellore, applied for intervention on the ground that they would be affected in a pending litigation by the decision of this Court on the Constitutional issues involved. Those applications were allowed by us. The result has been that we have heard very full arguments not only from Counsel appearing for the appellants and the respondents, but also from the learned Counsel appearing on behalf of the Union of India, the learned AdvocatesGeneral or Counsel appearing for the intervening States and also from learned Counsel appearing on behalf off the other three interveners referred to above.

2. The appellants in the three appeals are (1) the Automobile Transport (Raj.) Ltd., Ajmer, in Civil Appeal No. 42 of 1959 (2) the Rajasthan Roadways Ltd., Ajmer in Civil Appeal No. 43 of 1959, and (3) Framji C. Framji and others in Civil Appeal No. 44 of 1959. The respondents are (1) the State of Rajasthan, (2) the Regional Transport Officer who is ex officio Motor Vehicles Taxation Officer, Jaipur, and (3) the Collector of Jaipur. The first two appellants are private, limited liability companies registered under the Indian Companies Act, 1913 and having their registered offices at Ajmer. The third appellant is a partnership firm named Framji Motor Transport registered under the Indian Partnership Act. These three appellants carried on the business of plying stage carriages. The first appellant had nine transport vehicles plying between two stations in the State of Ajmer and between Ajmer and Kishangarh a town in Rajasthan at the relevant period. The two stations in Ajmer were Nasirabad and Deoli. The road from Nasirabad to Deoli was mainly in the former State of Ajmer but for some distance it passed through certain narrow strips of territory of the State of Rajasthan. Similarly, the road from Ajmer to Kishangarh was partly in the former State of Ajmer and partly in the State of Rajasthan, approximately two-thirds of the road lying in Ajmer and one-third in Rajasthan. The second and the third appellant also had some transport vehicles which plied on the Nasirabad-Deoli route or from Kishangarh to Sarwar a town situated on the Nasirabad-Deoli road in the State of Rajasthan. On the passing of the Rajasthan Motor Vehicles Taxation Act, 1951 (Rajasthan Act XI of 1951) (hereinafter referred to as the Act) and the promulgation of the ru