K.N.Singh, J. - (1.) The two petitioners made an application to the Regional Transport Authority for grant of a contract carriage permit in respect of mini bus. The Regional Transport Authority rejected the petitioners' application. The petitioners took up the matter in appeal under Section 64 of the Motor Vehicles Act, 1939, before the State Transport Appellate Tribunal which affirmed the order of the Regional Transport Authority and dismissed the petitioners' appeal by its order dated 3-10-1977. Aggrieved, the petitioners have by means of this petition under Article 226 of the Constitution challenged the order of the appellate Tribunal as well as that of Regional Transport Authority,
(2.) The Regional Transport Authority and the Appellate Tribunal rejected petitioners' application for grant of contract carriage permit in pursuance of the directions of the State Govt. as contained in its notification dated June 1, 1976 issued under Section 43-A of the Motor Vehicles Act, 1939. The State Government, under that notification, issued direction of a general character that no contract carriage permits shall be granted to private vehicles known as mini buses as it would not be in public interest to grant such permits. The expression "Mini Bus" as defined in the notification means an omnibus which is constructed or adopted to carry not more than thirty-five persons excluding the driver. Since the petitioners had applied for contract carriage permits in respect of mini Buses having seating capacity of not more than thirty-five persons, the Regional Transport Authority as well as the State Transport Appellate Tribunal rejected the petitioners' application in view of the directions issued by the State Government.
(3.) Section 43 of the Motor Vehicles Act, 1939, hereinafter referred to as the Act, empowers the State Government to issue directions to the State Transport Authority from time to time by notification in the Official Gazette regarding fixing of fares and freight for stage carriages, contract carriages and public carriages as prescribed under Section 43 (1) of the Act. Section 43-A was added to the principal Act by the U. P. Act 25 of 1972. Section 43-A was further amended by the U. P. Act 15 of 1976 which came into force on 1-5-1975. After the amendment Section 43-A reads as under:- "43-A. Power of State Government to issue Directions to Transport Authorities :- (1) The State Government may issue such directions of a general character as it may consider necessary or expedient in the public interest in respect of any matter relating to road transport to the S. T. A. or to any R.T.A. and such Regional Transport Authority shall give effect to all such directions. (2) Without prejudice to the generality of the provisions of Sub-section (1) such directions may be given in respect of any of the following matters, namely -( a) the number of stage carriage or contract carriage permits that may be granted in respect of any route or area; (b) the preference or the order of preference to be given to or the quota to be fixed for specially deserving categories such as ex-army personnel, educated unemployed persons, such persons holding driving licences as are members of cooperative societies formed for passenger transport business, persons belonging to the Scheduled Castes and Scheduled Tribes; (c) the procedure for grant of permits, and for selection from among the applicants, including selection by drawing of lots from among persons belonging to the same category. (3) Any direction under Sub-section (1) may be issued with retrospective effect. (4) Where any direction is issued under Sub-section (1) to any Transport' Authority, then any appeal or revision pending before the State Transport Appellate Tribunal shall be decided in such manner as to give effect to such direction, (5) Where any direction is issued under Sub-section (1) with retrospective effect then-( a) any Transport Authority or the State Transport Appellate Tribunal may review any order passed earlier by it with a view to making it conform to such direction, and may for that purpose cancel any permit already issued; (b) any Transport Authority may apply to the High Court for review of any order passed by such Court earlier with a view to enabling such Authority to comply with such direction. (6) The provisions of this section shall have effect notwithstanding any thing contained in Sections 47, 50 and 57." Under the aforesaid provision the State Government is empowered to issue directions of a general character to the State or R. T. A. if it considers it necessary or expedient in the public interest to do so in respect of any matter relating to road transport. The directions so issued are binding on the Transport Authorities and they are duty bound to give effect to all such directions. These directions may relate to the matters set out in the amended section, which may relate to the State carriages or contract carriages permits. The directions may further regulate the preference or order of preference to fee given or quota to be fixed for specially deserving categories and may also regulate procedure for the grant of permits and for selection from amongst the applications including selection by the draw of lots. Sub-section (3) confers power on the State Government to issue directions with retrospective effect. Normally administrative directions are not issued with retrospective effect but in the instant case the Legislature has conferred power on the State Government to issue statutory directions which may have retrospective effect. Once such directions are issued with retrospective effect then the Transport Authority or any Tribunal which may have decided any case, may review its earlier decision with a view to comply with the directions issued by the State Govt. The provisions of Section 43-A have been given overriding effect by Sub-section (6) which lays down, that the provisions of section shall have effect notwithstanding anything contained in Sections 47, 50 and 57 of the Act. Section 43-A as amended by the State Legislature therefore, confers wide powers on the State Government to regulate the exercise of powers of the Transport Authorities in matter relating to grant of stage carriage and contract carriage permits. It may also be noted that the subject matter of Motor Vehicles falls within entry 35 of concurrent list, therefore, the State Legislature is competent to amend the Central Act. Since the amending U. P. Act No. 25 of 1972 and U. P. Act No. 15 of 1976 have received the Presidential assent, they shall prevail in the State of U. P. even if some of its provisions may be inconsistent with the Central Act,;