2010 (3) AIR Kar R 742

Karnataka High Court

Hon'ble Judge(s): H. N. Nagamohan Das , J

( A ) Motor Vehicles Act (59 of 1988) S. 88 (1), Proviso — Grant of stage carriage permit — Inter-State route — Powers of State Transport Authorities — Petitioners were holders of stage carriage permit of enclave routes — No counter signature of other State or reciprocal agreement between States required — However, there was reciprocal agreements by State of Karnataka with other concerned States where in enclave routes were exempted from payment of taxes — Thus there was an implied agreement for grant of enclave permit — State Transport Authorities had jurisdiction to grant permit for enclave routes in absence of reciprocal agreement or counter signature of other State.The object of introducing second proviso to sub-section (1) of Section 88 of the Act is to avoid elaborate procedure to be followed in matter of obtaining counter signature of other State. By experience it was found that the procedure of obtaining counter signature of transit State had served no useful purpose. The dispensation with counter signature procedure if distance in transit State does not exceed 16 kms. will facilitate free flow of traffic of such routes. It is not in dispute that State of Karnataka issued permits of enclave routes lying in State of Kerala, Tamil Nadu and Andhra Pradesh. So also other three States have granted inter-State permits of enclave routes lying in State of Karnataka. This practice among States implies that there is an agreement....