S.V. SIVASWAMI SERVAI vs HAFEZ MOTOR TRANSPORT (FIRM) AND ORS.

The Supreme Court held that under Section 47(3) of the Motor Vehicles Act, 1939, the Regional Transport Authority (R.T.A.) must first determine the number of stage carriages required for a route before granting permits. The Court clarified that the grant of permits cannot be based solely on an agreement between rival claimants, as it must serve the public interest. The appeal was allowed, and the matter was remanded to the R.T.A. for a fresh decision on merits, emphasizing that permits in excess of the determined number are impermissible.