In Brief
The Supreme Court allowed appeals by the U.P. State Road Transport Corporation (UPSRTC) and set aside High Court judgments that granted permits to private inter-State operators. The Court held that inter-State reciprocal transport agreements (IS-RT Agreements) are agreements between States, not laws, and cannot override statutory schemes protecting notified routes under the Motor Vehicles Act, 1988. Where inter-State routes overlap with intra-State notified routes reserved for State Road Transport Undertakings, private operators cannot ply those overlapping portions unless the approved scheme expressly permits it or the operating corporation is wound up. The Court encouraged dialogue between States to resolve such overlaps through negotiation and modification of agreements, but held that unilateral permit grants violate the statutory framework protecting notified routes.
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