Published: Nov 6, 2025, 6:30 AM IST

The Supreme Court of India on Wednesday reprimanded the Uttar Pradesh State Road Transport Corporation (UPSRTC) for disallowing inter-state permits to private stage carriage operators from Madhya Pradesh (MP), while directing the transport authorities of both states to meet within three months to discuss a framework for a reciprocal inter-state transport agreement.

A bench comprising Justices Dipankar Datta and Augustine George Masih emphasized that courts cannot remain passive when state transport authorities fail to prioritize the best interests of commuters and passengers. “While we propose to allow the civil appeals and dismiss the writ petition, it would not be in the best interest of the people of the states of UP and MP for us to remain as mute spectators,” the bench observed.

Background

The case arises from an appeal filed by UPSRTC against a 2014 order of the Madhya Pradesh High Court, which had directed the UP transport authority to countersign permanent permits issued by the MP government. These permits were meant to allow private stage carriage operators from MP to enter UP freely and return, facilitating inter-state travel.

Stage carriage operators had argued that UPSRTC’s refusal to recognize their permits infringed on their fundamental right under Article 19(1)(g) to practice any profession or trade. The operators also highlighted the inter-state reciprocal transport agreement signed between UP and MP on November 21, 2006, which allowed state-run buses to operate across both states. With the MP State Road Transport Corporation (MPSRTC) having been wound up, the operators sought similar rights for private carriers.

Court Observations

While acknowledging that the law technically favored UPSRTC, the Supreme Court underscored that passenger welfare should be the priority. The bench noted that stage carriage services cater to a vast cross-section of the population, and creating obstacles for private operators could amount to a disservice to commuters.

“If the two reciprocating states fail to notice that services on certain overlapping routes may face roadblocks, public interest is rendered a casualty, and the purpose of the inter-state road transport agreement is frustrated,” the court stated.

The bench observed that while private operators can be restricted on stretches overlapping with intra-state routes, these limitations should not impede commuter convenience. It highlighted that modern road infrastructure, including highways and expressways with smoother surfaces and better connectivity, has significantly transformed India’s transportation landscape.

Digitalization and Passenger-Centric Services

The court also recognized the role of technology in modernizing transportation, noting that online booking platforms and real-time tracking apps have improved service delivery and passenger convenience. Given these advancements, the bench stressed that the Principal Secretaries of transport departments of UP and MP should meet within three months to finalize the modalities of the ISRT Agreement, ensuring seamless inter-state operations for private operators.

The court suggested that the states may also consider partial exclusion of certain inter-state routes to further optimize passenger interests. However, it clarified that these decisions are matters of policy and administrative discretion, which should be taken by the respective state authorities.

Way Forward

The Supreme Court’s directions aim to balance regulatory discretion with public interest, ensuring that inter-state private bus services are not hindered while maintaining the states’ authority over intra-state transport management.

In essence, the court’s intervention seeks to:

• Prioritize commuter welfare over bureaucratic or corporate rigidity.
• Facilitate seamless inter-state transport by ensuring recognition of permits issued by other states.
• Encourage dialogue and coordination between UP and MP transport departments to operationalize the ISRT agreement effectively.

The ruling is expected to streamline inter-state bus operations, providing relief to passengers and private operators alike, while reinforcing the principle that public convenience and safety remain paramount in transport governance.