SOBHRAJ ODHARMAL vs STATE OF RAJASTHAN

The Supreme Court upheld the legality of a motor transport scheme under the Motor Vehicles Act, 1939, specifically Sections 42(1) and 68R, ruling that the appellants were duly served notice of the hearing regarding objections to the scheme. The Court found that the Legal Remembrancer's decision to approve the scheme was based on evidence, not merely on the presumption of service under Rule 7(4) of the Rajasthan State Road Transport Service (Development) Rules, 1960. The Court concluded that the cancellation of private operators' permits was lawful and did not infringe upon their fundamental rights to carry on business, as their rights were extinguished upon the finalization of the scheme.