MALIK RAM vs STATE OF RAJASTHAN

The Supreme Court held that under Section 68-D(2) of the Motor Vehicles Act, 1939, the authority responsible for approving or modifying a transport scheme has the power to disapprove it entirely. The Court found that the Officer's refusal to allow evidence was erroneous, emphasizing that the authority acts as a quasi-judicial tribunal and must consider relevant evidence. The Court clarified that the use of 'shall' in Rule 7(6) does not limit the authority's discretion under the Act, and any rejected scheme must be framed according to the prescribed procedure in Chapter IVA of the Act.