Judgment :- 1. The challenge in this writ petition is directed against the decision rendered by the State Transport Appellate Tribunal in an appeal filed before it by the 3rd respondent herein under S.64 of the Motor Vehicles Act, 1939 (hereinafter referred to as the Act) questioning the legality and correctness of the order Ext. P3 dated 27 81975 passed by the Regional Transport Authority, Cannanore sanctioning the grant of a pucca stage carriage permit in favour of the writ petitioner to operate a service on the route Kuthuparamba-Caonanare. There were only three valid applications before the Regional Transport Authority for the grant of the permit in question. The Regional Transport Authority was of the view that since the grant was in respect of a "short raute" a new entrant should be encouraged and it was on that basis that the permit was sanctioned in favour of the writ petitioner. The 3rd respondent herein who was one amongst the three applicants is a co-operative society-the Cannanore District Motor Transport Employees Co-operative Society Ltd. In the appeal filed by the 3rd respondent Society before the State Transport Appellate Tribunal the main point urged by it was that the impugned grant had been made by the Regional Transport Authority overlooking the provision contained in R.117A (2) of the Kerala Motor Vehicles Rules, 1961 which lays down that in granting permits, other conditions being equal, an application for a stage carriage permit from a co-operative society, shall, as tar as may be, be given preference over applications from individual owners. This contention was upheld by the State Transport Appellate Tribunal and accordingly by the judgment Ext P6 dated 26th October, 1976 it allowed the appeal filed by the 3rd respondent Society, set aside the grant of the permit made in favour of the writ petitioner by the Regional Transport Authority and directed the Regional Transport Authority to grant the permit to the 3rd respondent. This writ petition has been brought by the petitioner seeking to quash Ext. P6. 2. It is urged on behalf of the writ petitioner that since the route in respect of which the permit is being granted is a "short rute" new entrants are entitled to preference over other applicants under sub-rule (3) of R.177A of the Kerala Motor Vehicles Rules, 1961. P6. 2. It is urged on behalf of the writ petitioner that since the route in respect of which the permit is being granted is a "short rute" new entrants are entitled to preference over other applicants under sub-rule (3) of R.177A of the Kerala Motor Vehicles Rules, 1961. The petitioner submits that the 3rd respondent Society is a fleet owner having as many as nine pucca permits and that hence the Regional Transport Authority had acted rightly in preferring the petitioner who is a new entrant for the grant of the permit. Unfortunately for the petitioner, the provisions of sub-rule (3) of the Rale 177A relied on by him are to operate only subject to the rule of preference laid down by sub-rule (2) of R.177A in favour of Co-operative Societies. Sub-rules (2) and (3) of R.177A omitting such portions as are not relevant for the purposes of this case read: "177A(2). In granting permits, other conditions being equal, an application for a stage carriage permit from the Kerala State Roard Transport Corporation or from a Cooperative Society registered or deemed to be registered under any law for the time being in force shall, as far as may be, given the first and second preference respectively, as required by the proviso to subsection (1) of S.47 of the Motor Vehicles Act, 1939 (Central Act IV of 1939) as amended by the Motor Vehicles (Kerala Amendment) Act, 1968 (16 of 1968), and an application from a displaced operator shall be given the third preference over other applications. (3) Subject to sub-rule (2), other things being equal, preference may be given to the applicants as follows: (a) Short routes to new entrants; (b) For medium routes to applicants with 1 to 4 stage carriages (excluding spare buses)." In view of the opening words of sub-rule (3) there is no escape from the position that the principle laid down by the said sub-rule entitling new entrants to preference in respect of short routes can be applied only subject to the rule of preference in favour of co-operative societies laid down by sub-rule (2). The provisions of sub-rule (2) are of general application and they enjoin that in all cases of grant of stage carriage permits an application from a co-operative society is to be given preference over applications from individual owners provided other conditions are equal, irrespective of whether the routs in respect of which the permit is proposed to be granted is a "short route", medium route or long route. This is also quite consistent with the provision contained in proviso (b) to S.47(1) of the Act which lays down" that subject to the rule of preference laid down in proviso (a) in favour of the Kerala State Road Transport Corporation, co-operative societies, registered under any enactment in force for the time being, shall be given preference over individual applicants in the matter of grant of stage carriage permits. Such being the position that obtains under the Act and the Rules, the State Transport Appellate Tribunal was right in holding that the 3rd respondent, which is a co-operative society and whose qualifications are admittedly in no way inferior to those possessed by the writ petitioner, was entitled to preference in the matter of the grant of the permit over the route in question. Hence there are no grounds justifying any interference with the judgment Ext. P6 rendered by the State Transport Appellate Tribunal. 3. The original petition accordingly fails and it will stand dismissed but, in the circumstances, without any order as to costs. Carbon copies of this judgment will be furnished to the counsel appearing in the case on payment of the requisite charges. Dismissed.