GOVERDHAN LAL DHAWAN vs STATE OF BIHAR & OTHERS

The Supreme Court held that under Section 45(1) of the Motor Vehicles Act, 1939, a Regional Transport Authority can grant a permit for an inter-regional route without a prior agreement with other authorities, provided the application is made to the authority of the region where the major portion of the route lies. The Court clarified that under Section 63, a permit granted by one authority is not valid in another region unless counter-signed, but if there is an agreement between states, this procedure may be bypassed. The petition challenging the High Court's dismissal was therefore dismissed, affirming the authority's power to issue permits under the Act.