In Brief
The State of Kerala had notified a route (Kottayam-Kozhikode) as exclusive to the State Transport Undertaking (STU) under a 2009 scheme. A private operator sought a temporary permit to run buses on an overlapping portion (13 km) of this notified route, claiming the STU was not adequately serving it. The High Court allowed this temporary permit relying on the proviso to Section 104 of the Motor Vehicles Act, 1988. The Supreme Court reversed, holding that a temporary permit cannot exceed the scheme's permissible limits (5 km or 5% of the operator's route, whichever is less) and that "intersection" differs from "overlapping." Since the STU was operating substantial services on the notified route, the proviso's condition (no STU application) was not met. The appeal was allowed and the temporary permit set aside.
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