1997 INSC 0264
                                               Prakash Chandra Sahu

                                                           Vs

                                      State Transport Authority and Others

                                          Civil Appeal No. 1828 of 1997

                                       (K. Ramaswamy, G. T.Nanavati JJ)

                                                      03.03.1997

                                                        ORDER

1. Leave granted.

2. This appeal by special leave arises from the Order dated 9-8-1996, made by the Division Bench
of the Orissa High Court in OJC No. 3073 of 1995.

3. The admitted position is that at one point of time the appellant had a permanent stage carriage
permit operating on the inter-State route, viz., Peralakhemundi to Berhampur via Chatrapur and
Garabandha. After the Motor Vehicles Act, 1988 came into force, the appellant filed an application
for renewal of the permit and the dispute arose whether he is entitled to renewal of the permit.
Since, admittedly, the permit granted under Act 4 of 1939 expired after the 1988 Act came into
force, he was to apply afresh under the 1988 Act. Earlier when he had filed a writ petition, OJC No.
3421 of 1993, the High Court had directed reconsideration of the application for renewal and also
the application of the contesting respondents after decision was taken on the application of the
petitioner therein. Admittedly, the State Transport Authority had considered their applications and
rejected the application for renewal and granted fresh permit to the third respondent. On a
clarification sought by the contesting respondent, the High Court had pointed out that the judgment
was not intended to have the permit granted to the contesting respondent cancelled; nonetheless the
application of the appellant would be considered as and when need arose.

4. Shri A. K. Panda, learned counsel for the appellant, contends that in view of the decision of this
Court in Gajraj Singh v. STAT ((1977) 1 SCC 650), in particular para 62, the appellant is entitled to
apply afresh and to be considered by the authorities in accordance with law. He has stated that he
had filed an application for renewal on 4-11-1996 for grant of permanent licence. In view of the
above decision of this Court, if any permit was renewed under the provisions of the 1988 Act, the
renewal was to be treated to be a temporary permit under Section 87 of that Act and that before
expiry thereof, parties were directed to make an application afresh under the 1988 Act and seek
permit thereunder in accordance with law. The direction issued by the High Court is not inconsistent
with the above judgment of this Court. Under those circumstances, if the appellant has any right for
grant of permit, the same has to be in accordance with law. Necessary application which comes to
be made in accordance with law should be disposed of by the STA as per the provisions of the 1988
Act.

5. The appeal is accordingly dismissed with the above observations. No a costs.