In Brief
A stage carriage permit holder applied to replace his 2016-model bus with a 2006-model bus. The Regional Transport Authority rejected the application under Rule 174(2)(c) of the Kerala Motor Vehicles Rules, which permits rejection if the replacement vehicle is older. The High Court held the rule ultra vires Section 83 of the Motor Vehicles Act, 1988, which allows replacement with 'any other vehicle of the same nature.' The Supreme Court allowed the appeal, holding that Rule 174(2)(c) is valid and intra vires the Act. The Court reasoned that the rule falls within the State Government's jurisdiction over permit regulation (Chapter V) and does not encroach on Central Government's powers over vehicle fitness and age limits (Chapter IV). The discretion to reject must be exercised reasonably and fairly."
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