In a significant ruling, the Supreme Court has upheld the constitutional validity of the Karnataka Motor Vehicles Taxation and Certain Other Law (Amendment) Act, 2003 ("2003 Act"). This law delegates the power to issue transport permits within the state to the Secretary of the State Transport Authority (STA). The court emphasized that routine permit issuance should not solely rest with the STA but can be delegated to reduce administrative burdens and ensure efficiency.

Transfer of Transport Permit Issuance Power

"If delegation were not allowed, the STA would be overloaded with routine tasks, causing unnecessary delays. The delegation of permit-granting authority is not only legally valid but also essential for ensuring smooth transport services."

Following this decision, the STA Secretary is now authorized to issue permits for contract carriages, special vehicles, tourist vehicles, and temporary vehicles, making the process faster and more efficient.

Read Also:- Supreme Court's Stern Remark on Madhya Pradesh Government's Delay in Filing Petitions

Previously, the Karnataka High Court had struck down this delegation, declaring the 2003 Act unconstitutional. The High Court reasoned that the Karnataka Contract Carriages (Acquisition) Act, 1976 (KCCA), had received presidential assent, and its repeal without fresh presidential approval was invalid.

The Supreme Court rejected this argument, stating:

"The power to repeal a law is coextensive with the power to enact it. If the State Legislature had the authority to pass the KCCA Act in 1976, it also has the power to repeal it in 2003."

The court clarified that the repeal was a policy decision and did not contradict prior judicial rulings.

Read Also:- Governor Cannot Use Pocket Veto on Bills Tamil Nadu Governments Argument in Supreme Court

Opponents argued that granting transport permits is a quasi-judicial function requiring a multi-member authority rather than a single official. The Supreme Court countered this by stating:

"A balance must be maintained between administrative efficiency and judicial oversight. Not all permit-related decisions require full adjudication; many involve routine approvals that can be handled efficiently by a competent officer like the STA Secretary."

Over the years, Karnataka’s transport policy has evolved, with increasing demand for better transport services. The strict regulations on private bus operators led to a shortage of transport options, particularly in rural and semi-urban areas.

Read Also:- UP Government Seeks Supreme Court's Nod to Administer Mathura Temples Under Receivership of Advocates

Explaining the rationale behind the 2003 amendment, the court noted:

"The government aimed to liberalize the transport sector, encourage private operators, and address the severe shortage of passenger services. Allowing private operators greater participation ensures better public transport availability and competition."

Read Also:- Supreme Court Restricts Registry’s Power: Cases Cannot Be Deleted from Cause List Without Judicial Authorization

Delegating permit issuance power to the STA Secretary will speed up the process, reducing bureaucratic delays and ensuring efficient transport services.

With this ruling, private bus operators can now apply for transport permits more easily, leading to greater competition and improved services for passengers.

By shifting certain responsibilities to the STA Secretary, the decision will help reduce administrative burdens, enhance transparency, and make government operations more efficient.