In Brief
The Supreme Court upheld Rule 174(2)(c) of the Kerala Motor Vehicles Rules, 1989, which allows transport authorities to reject replacement vehicle applications if the proposed vehicle is older than the one covered under an existing permit. The Court held that the rule is valid and does not exceed the Motor Vehicles Act, 1988. The phrase "of the same nature" in Section 83 relates to ensuring permit conditions remain unchanged, not to stand-alone vehicle standards. The rule does not infringe the Central Government's exclusive power over fitness and age limits. The Court emphasized that authorities must exercise discretion reasonably and fairly, and decisions must be subject to challenge if arbitrary. The appeal was allowed and the High Court's judgment striking down the rule was set aside.
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