Hearing a petition by Gopalakrishna Mullya and others, Justice HN Nagmohan Das quashed the order. The State had issued enclave permits to private bus operators which allowed them to operate trips of private buses to a length of 16 km in neighbouring states apart from the long route in Karnataka. Many private bus operators had obtained licence between 2007 and 2009.
The KSTAT allowed the petition and ruled that State had no power to issue licence as it was not included in interstate agreement between two states. The Court has held that under Section 88(1) of Motor Vehicle Act of 1988, the interstate bus service was allowed and implied agreement between two states. “The transport authority has the jurisdiction to issue licence to run interstate bus service,” the court observed.
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