A bench comprising Chief Justice G Rohini and Justice R S Endlaw issued notice to the Delhi government and sought its reply.
The court was hearing a petition, filed by NGO 'Janodaya Ekta Samiti' through advocate Krishna K Singh.
The NGO, which represents association of street vendors, alleged that Rule 14 of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, "arbitrarily" limits the scope of effective representation of street vendors in Town Vending Committee in two ways.
"Thus, it debars maximum number of existing street vendors from participating in the election process who are not holding any tehbazari licence and who are yet to be granted certificate of vending only after their comprehensive survey contemplated under Section 3(1) of the Street Vendors Act, 2014," the plea said.
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It said that under a provision of the Act, all existing vendors are permitted to continue with their vending activities till their survey and grant of certificate of vending.
The petition claimed that certain rules, made under the Act, are "unreasonable, arbitrary and bad in law" as they debar the street vendor associations from participating in the election for members of Town Vending Committee representing street vendors.