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Issues: (i) Whether the appellate tribunal's order was vitiated because one member who signed the minutes had not been present at the hearing. (ii) Whether the appeal before the State Transport Authority was competent when the petitioner's application for permit had been rejected in favour of another applicant.
Issue (i): The verification of the affidavit denying the member's absence was defective and the petitioner's allegation remained unrebutted. The minutes, therefore, could not be relied on as showing a valid hearing by the tribunal as constituted.
Conclusion: The appellate tribunal's decision was invalid on this ground, in favour of the petitioner.
Issue (ii): Where several applicants compete for a single permit, rejection of one application in favour of another amounts to a refusal of the others. The authority cannot treat such applications as remaining undecided, and the appeal under the Motor Vehicles Act was therefore maintainable. Compliance with the statutory scheme governing permit selection was also mandatory.
Conclusion: The State Transport Authority had jurisdiction to entertain the appeal, in favour of the petitioner.
Final Conclusion: The writ petition succeeded, the appellate order was quashed, and the matter was sent back for fresh consideration according to law.
Ratio Decidendi: A tribunal's order is vitiated if a member who participated in the decision-making process was not present at the hearing, and rejection of one permit application in a competition for a single permit constitutes a refusal sufficient to found an appeal under the governing motor vehicles statute.