(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 petitioners' application. The petitioners took up the matter in appeal under Section 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 Article 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 Section 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 public interest to grant such permits. 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.) Section 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 Section 43 (1) of the Act. Section 43-A was added to the principal Act by the U. P. Act 25 of 1972. Section 43-A was further amended by the U. P. Act 15 of 1976 which came into force on 1-5-1975. After the amendment Section 43-A reads as under:-