Section 77(2) in The Punjab Motor Vehicles Rules, 1989
(2)Upon receipt of an application under sub-rule (1), the State or a Regional Transport Authority may in its discretion reject the application -(i)if it has prior to the application given notice of its intention to reduce the number of transport vehicles of that class generally or in respect of the route or area to which the permit applies; or(ii)if the new vehicle proposed differs in material respects from the old; or(iii)if the holder of the permit has contravened the provisions of the permit or has been deprived of the possession of the old vehicle under the provisions of a hire purchase agreement :Provided that in considering an application for new permit within its area, the State or a Regional Transport Authority shall, other things bring equal, give preference to an applicant who has been deprived of a permit by the operation of clause (i) of this sub-rule.
