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As per the case facts a regional transport authority challenged a High Court judgment concerning vehicle replacement under transport permits The dispute centered on a state rule that allowed rejection
...of a replacement application if the proposed vehicle was older than the existing one with the High Court having ruled against this rule The appeal to the Supreme Court sought clarity on the state's power to enact such a rule in light of the central motor vehicles act The question arose whether a State Government rule which permits a road transport authority to reject an application for replacing a vehicle on a permit if the new vehicle is older than the one being replaced is legally valid and within the scope of the central Motor Vehicles Act Finally the Supreme Court declared that the specific state rule allowing rejection of older replacement vehicles is valid and consistent with the Motor Vehicles Act setting aside the High Court's contrary judgment and allowing the appeals