In a significant ruling affecting private bus operators across Kerala, the Kerala High Court on Friday dismissed a series of appeals filed by the Kerala State Road Transport Corporation (KSRTC) and the State government. The court upheld the right of private operators holding “saved permits” to continue services beyond the 140-kilometre limit.
The verdict came in a batch of writ appeals challenging a single-judge order that had allowed renewal of permits without enforcing distance restrictions introduced by a 2023 government scheme.
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Background of the Case
The case arose from multiple petitions filed by private stage carriage operators whose permits were due for renewal. These operators had been running long-distance services-some exceeding 140 km-under permits granted years ago.
In 2023, the Kerala government introduced a transport scheme restricting long-distance operations, reserving such routes mainly for KSRTC buses. Based on this, Regional Transport Authorities (RTAs) began rejecting or delaying renewal applications of private operators.
Aggrieved by this, the operators approached the High Court, arguing that their permits were protected under earlier legal rulings, particularly the 2018 judgment in KSRTC v. Saju Varkey, which allowed such services without distance restrictions.
A single judge of the High Court had earlier ruled in favour of the operators, prompting KSRTC and the State to file multiple appeals.
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The main question before the Division Bench was:
Can the government deny renewal of stage carriage permits solely on the ground that the route exceeds 140 kilometres, despite earlier court rulings?
Court’s Observations
A Division Bench comprising Justice Anil K. Narendran and Justice Muralee Krishna S. examined the history of transport schemes and previous rulings.
The court noted that:
- The 2018 Saju Varkey judgment had clearly protected “saved permits.”
- The 2023 government scheme attempted to override that ruling indirectly.
- The government itself had earlier accepted the legal position and withdrawn appeals.
The Bench observed:
“The declaration in Saju Varkey continues to operate. The 2023 scheme cannot be used to defeat the rights of permit holders protected under earlier law.”
The judges also pointed out that once a scheme is quashed or rendered ineffective, the legal position prior to it automatically revives.
Court’s Decision
Dismissing all appeals filed by KSRTC and the State, the High Court held:
- Private operators holding saved permits are entitled to renewal without distance restrictions.
- RTAs must process temporary permit applications within three weeks.
- Renewal of regular permits must be completed within two months.
- The 140-km limit cannot be enforced unless a valid new scheme is enacted.
The court clearly ruled that the government cannot deny permits merely by relying on the 2023 notification.
“Until a fresh scheme is lawfully introduced, authorities must follow the binding declaration already laid down,” the Bench stated.
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Impact of the Judgment
The decision provides relief to dozens of private bus operators across Kerala who were facing service disruptions due to delayed or rejected permit renewals.
It also reaffirms that:
- Administrative schemes cannot override judicial decisions.
- Transport authorities must act within the framework of settled law.
- Long-standing permits enjoy legal protection unless lawfully withdrawn.
Case Title: Kerala State Road Transport Corporation v. Suresh Kumar V.K. & Others
Case Numbers: W.A. Nos. 2342/2025 and connected cases
Decision Date: 16 January 2026
