T. N. RAGHUNATHA REDDY vs MYSORE STATE TRANSPORT AUTHORITY

The Supreme Court addressed the validity of the 'Kolar scheme' under the Motor Vehicles Act, 1939, specifically sections 68-D and 68F. The Court held that the appellant was not an 'existing permit holder' as defined in clause (d) of the scheme because the crucial date for interpretation was the date the Mysore State Transport Undertaking applied for a permit, which was March 1, 1968, prior to the appellant's counter-signature. Consequently, the Court upheld the decision of the State Transport Authority to cancel the counter-signature on the appellant's permit, affirming the legality of the Kolar scheme and the inter-State agreement's limitations on permits.