Regulatory taxi classification upheld where tariff differences and permit control were based on rational public-interest criteria.

A tariff and permit regime for small motor taxis was upheld because the distinction from large taxis rested on relevant differences in horsepower, size and running expenses, and was adopted for a public purpose. The resulting competition and adverse effect on existing large taxi operators did not make the classification arbitrary or discriminatory under Article 14. Article 19(1)(g) protects the right to carry on business, but does not confer a monopoly or bar bona fide regulatory competition. The transport authority's power to regulate permits and tariff rates for different vehicle classes was therefore validly exercised, and the constitutional challenge failed.

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Issues: Whether the notification introducing small motor taxis at a lower tariff, and the grant of permits to them, violated the appellants' fundamental rights under Articles 14 and 19(1)(g) of the Constitution.

Analysis: The tariff differentiation between small and large taxis was upheld as resting on a rational basis, having regard to differences in horse power, size and running expenses. The mere fact that the new arrangement might adversely affect the business of existing large taxi owners did not make the classification arbitrary or discriminatory. Likewise, Article 19(1)(g) protects the right to carry on a trade or business, but it does not secure a monopoly over the field or prevent lawful competition introduced by a bona fide regulatory decision. The power of the transport authority to regulate permits and tariff rates for different classes of vehicles was treated as validly exercised for the benefit of the public.

Conclusion: The notification did not infringe Articles 14 or 19(1)(g), and the challenge failed.

Ratio Decidendi: A regulatory classification based on relevant differences, and adopted bona fide in the public interest, does not violate equality or the right to trade merely because it creates competition and affects existing ines.

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