The papers submitted to the Chubu District Transport Bureau by a Kyoto-based taxi firm seeking to operate free taxis are valid, the Nagoya District Court ruled Wednesday.

However, the court refused to order the bureau to reverse its decision to not accept them.

Presiding Judge Yukio Kato ruled that the papers submitted by MK Co. were proper, but that as the transport bureau has no legal basis to accept or reject papers of notification, the court could not nullify the decision.

"Because there is nothing wrong with the documents, this case cannot be brought before the courts for nullification," he said.