Statutory settlement before transport authority bound the parties and upheld the permit arrangement.

A compromise placed before the statutory transport authority and acted upon by it governed the parties' rights on renewal and grant of stage carriage permits. The settlement regulated the operating dates for the rival operators and contemplated withdrawal of pending challenges. As the authority had given effect to that arrangement, the consequential orders could not be disturbed on the footing advanced by the challengers. The result was that the compromise bound the parties, the attack on the orders failed, and the High Court's relief was not sustained.

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Issues: Whether the compromise reached before the Regional Transport Authority and acted upon by it bound the private operators, and whether the impugned orders affecting the grant and renewal of stage carriage permits were liable to be interfered with.

Analysis: The dispute arose out of competing claims for renewal of stage carriage permits and for grant of substantive permits, followed by an agreed settlement placed before the Regional Transport Authority. The settlement contemplated withdrawal of the pending challenges and regulated the dates from which the appellant and the private operators were to operate on the concerned routes. The matter turned on the effect of that compromise and on the validity of the orders passed in consequence of it.

Conclusion: The compromise and the consequential arrangement were binding, and the challenge to the orders could not succeed.

Final Conclusion: The appeals were allowed and the relief granted by the High Court was not sustained.

Ratio Decidendi: Where parties settle their disputes before the statutory authority and the authority acts upon that settlement, the resulting arrangement governs the parties unless it is shown to be legally invalid.

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