New Delhi, Nov. 4 -- The Supreme Court today ruled that private bus operators cannot be granted stage carriage permits on inter-State routes under reciprocal transport agreements if any portion of those routes overlaps a notified intra-State route reserved for State Transport Undertakings (STUs) under Chapter VI of the Motor Vehicles Act, 1988.

A Bench comprising Justices Dipankar Datta and Augustine George Masih set aside an order of the Gwalior Bench of the Madhya Pradesh High Court, which had directed recognition of permits issued to Madhya Pradesh's private operators under the Inter-State Reciprocal Transport (IS-RT) Agreement between Madhya Pradesh and Uttar Pradesh.

The High Court had directed Uttar Pradesh authorities to validate s...