SHER SINGH & ORS vs UNION OF INDIA AND OTHERS

The Supreme Court held that Section 47(1-H) of the Motor Vehicles Act, 1939, which grants preference to State Transport Corporations for inter-state permits, is violative of Article 14 (right to equality) and Article 19(1)(g) (right to carry on trade) of the Constitution. The Court ruled that the petitioner, a private operator, was entitled to renewal of his existing permits in preference to the new application by the State Transport Corporation. The judgment emphasized that any preferential treatment for State Corporations must comply with constitutional provisions, thereby upholding the petitioner's rights.