D. NATARAJA MUDALLAR vs STATE TRANSPORT AUTHORITY, MADRAS

The Supreme Court ruled that the right to ply a contract carriage is a fundamental right under the Motor Vehicles Act, 1939, specifically referencing Sections 50 and 58 regarding permit issuance and renewal. The Court held that the State Transport Authority's rejection of the renewal application based on the adequacy of existing transport facilities was arbitrary and lacked proper justification. Consequently, the Court set aside the decisions of the State Transport Authority and the State Transport Appellate Tribunal, emphasizing the need for a fair assessment of public transport requirements.