S.SHAMSHUDDIN & ORS. ETC vs STATE OF KARNATAKA & ORS.

The Supreme Court upheld the validity of Section 63(7) of the Motor Vehicles Act, 1939, as amended by the Motor Vehicles (Amendment) Act, 1969, which allows the Central Government to fix a quota of all India tourist permits for each State. The Court found that the quota of 50 permits per State, established by Notification No. S.O. 22 dated December 19, 1977, was not arbitrary or violative of Article 14 of the Constitution, as no evidence was presented to demonstrate its discriminatory nature. The Court emphasized the need for a reevaluation of the quota to align with the growing tourist traffic, but dismissed the writ petitions challenging the quota.