In a significant ruling affecting private stage carriage operators across Kerala, the High Court has upheld their right to renew permits without being restricted by the 140-kilometre distance limit imposed under a 2023 government scheme. The Division Bench dismissed a batch of appeals filed by the Kerala State Road Transport Corporation (KSRTC) and the State government, reaffirming earlier judicial protection given to “saved permit” holders.
Background of the Case
The dispute arose from multiple writ petitions filed by private bus operators whose stage carriage permits were either due for renewal or were awaiting temporary extensions. These permits covered long-distance routes such as Kozhikode–Ernakulam, Kottayam–Kumily, Ernakulam–Kozhikode, and other inter-district and inter-regional routes.
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The operators challenged the State’s insistence that their routes must be curtailed to within 140 kilometres, based on a transport scheme notified in May 2023. The government and KSRTC argued that long-distance operations should remain exclusively with the State transport undertaking.
Earlier, a Single Judge of the High Court had ruled in favour of the operators, holding that the restriction could not override earlier judicial declarations protecting “saved permits.” Aggrieved by this, KSRTC and the State filed multiple writ appeals.
Court’s Observation
A Division Bench comprising Justice Anil K. Narendran and Justice Muralee Krishna S. examined the legality of the government’s stand and the applicability of the 2023 scheme.
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The court noted that the issue had already been conclusively settled in Kerala State Road Transport Corporation v. Saju Varkey (2018), where it was held that permit holders whose rights were protected prior to the 2013 scheme could continue operations without distance restrictions.
Rejecting the State’s argument, the Bench observed:
“The declaration in Saju Varkey continues to hold the field. The attempt to reintroduce distance limits through a later scheme cannot defeat rights already crystallised.”
The court further pointed out that the 2023 scheme could not override judicial pronouncements and that the government itself had earlier accepted this legal position.
The judges also emphasized that once a scheme is struck down or rendered ineffective, the legal position reverts to what existed earlier.
“The quashing of a scheme restores the legal position as it stood prior to its introduction,” the Bench noted.
Key Legal Findings
- Saved permit holders are entitled to renewal without distance restrictions.
- The 140-km cap introduced through the 2023 scheme cannot be enforced.
- Regional Transport Authorities must process renewal and temporary permit applications without relying on the impugned distance limit.
- Earlier rulings, especially Saju Varkey (2018), continue to bind authorities.
- Administrative interpretations cannot override settled judicial declarations.
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Court’s Final Decision
Dismissing all appeals filed by KSRTC and the State, the High Court upheld the Single Judge’s directions and ordered:
- Regional Transport Authorities must consider applications for temporary permits within three weeks.
- Applications for renewal of regular permits must be decided within two months.
- No distance restriction shall be imposed while considering such applications.
- The 2023 scheme cannot be used to deny renewals until a valid new scheme is framed in accordance with law.
With this, the court brought relief to dozens of private operators who had been facing uncertainty over permit renewals.
Case Title: Kerala State Road Transport Corporation & Ors. v. Shaji Mathew & Ors.
Case Number: W.A. No. 2342 of 2025 and connected cases
Decision Date: 16 January 2026
