GULLAPALLI NAGESWARA RAO AND OTHERS vs ANDHRA PRADESH STATE ROAD TRANSPORTCORPORATION AND ANOTHER

The Supreme Court addressed the validity of a nationalization scheme under Chapter IVA of the Motor Vehicles Act, 1939, as amended by Act 100 of 1956, which was challenged on the grounds of being colorable legislation and ultra vires. The Court held that the question of colorable legislation pertains to the legislative competence of the enacting body, emphasizing that the legislature must operate within its defined powers and cannot exceed them. The Court found that the State Government's actions in approving the scheme did not violate Article 31 of the Constitution, thereby upholding the scheme's validity.