R. M. SUBBARAJ vs KODAIKANAL MOTOR UNION (P) LTD.

The Supreme Court held that the High Court's quashing of the State Transport Appellate Tribunal's order was justified as the Tribunal improperly relied on Government Order No. 2265 dated 9 August 1958 as a major factor in its decision. The Court emphasized that the Tribunal's preference for the appellant based on the Government Order was not a reasonable ground for denying the respondent's claim as the most qualified medium route operator. The Court upheld the High Court's directive for the Tribunal to reassess the permit applications without the undue influence of the Government Order.