Introduction
In a key verdict protecting public transport rights, the Supreme Court of India has clarified that private bus operators are not allowed to operate on inter-state routes overlapping with routes reserved for State Transport Undertakings (STUs) under the Motor Vehicles Act, 1988.
This decision reinforces the exclusive operational authority of government transport corporations and ensures regulatory discipline in India’s road transport system.
Background of the Case
The issue arose when several private transport operators sought permits for inter-state services that either fully or partially overlapped with existing routes designated for State Transport Undertakings.
Authorities raised objections, arguing that such permissions would violate the nationalization scheme introduced under Chapter VI of the Motor Vehicles Act.
The matter reached the Supreme Court for interpretation of whether partial overlaps could still be allowed under the law.
Court’s Key Observations
The Apex Court ruled that once a route is officially notified under Section 100 of the Motor Vehicles Act, only State Transport Undertakings have the right to operate there.
The Court emphasized that:
- The exclusivity of STUs must be strictly maintained.
- Private operators cannot ply, even on portions of a notified route.
- Allowing overlaps would undermine the purpose of route nationalization and disrupt regulated public transport services.
The Court further noted that the Motor Vehicles Act aims to ensure safety, accessibility, and efficient public transportation, which would be compromised if overlapping private permits were allowed.
Impact of the Judgment
This ruling provides clear direction to transport authorities and operators across India:
- STUs retain full and exclusive rights over their notified routes.
- Private bus operators must verify that their proposed routes do not infringe upon notified public routes.
- Regulators are expected to exercise caution while granting or renewing permits to avoid legal conflicts.
Conclusion
The Supreme Court’s decision strengthens the framework for public transport governance under the Motor Vehicles Act.
By restricting overlapping operations, the Court has reaffirmed the sovereignty of notified routes, promoting fair competition and smoother regulatory compliance.
Author Credit
Written by the Legal Research Team at PP & Associates, Kolkata.
PP & Associates is the best law firm in Kolkata, specialising in litigation, corporate law, arbitration, and regulatory compliance. The firm is committed to providing clients with straightforward, practical, and results-oriented legal solutions throughout India.
