Raising questions over feasibility of complete ban on app-based taxi services, the Delhi high court has set aside the Delhi government's order of rejection of cab service provider Uber's application for licence.

The judge on Wednesday said Delhi has 10 days to set out the requirements for Uber to be granted a license. If the company fails to fulfill the stipulations, transport officials can pass a new order prohibiting the company from operating, the judge said.

The judge said Uber should be allowed to operate while the San Francisco-based company seeks a license from the Delhi Transport Department. The ruling follows a similar decision by a court last month in favor of Uber’s local rival, ANI Technologies Pvt. Ltd.

The court also lifted the spirits of the cab operators when it raised doubts on complete ban on the app-based cabs and said that the government can impose strict conditions on their services.

Uber India Technology Pvt Ltd had on Friday had moved the Delhi High Court challenging an order of the city government denying extension of its licence to operate radio cabs in the national capital.

In a major decision, Delhi government had on June 3 rejected fresh applications for licence by US-based taxi booking firm Uber and two other such service providers -- Ola and TaxiForSure.

Delhi government officials said the applications of the three taxi aggregators were rejected for not filing undertakings stating they were complying with a ban imposed on them. The three operators had filed the applications under the modified Radio Taxi Scheme introduced five months ago.

All app-based cab service were banned in the national capital after a driver of Uber, the US-based online cab service provider, was accused of raping a 27-year-old financial consultant woman passenger in December last year.

The Delhi government in March had approached the Centre to block web-based apps of Uber, Ola Cabs and TaxiForSure alleging that these companies were not complying with its ban order imposed on them.

Uber operates in more cities in India than in any other country outside the US. Last week it expanded the number of cities where its smartphone app works to 18 from 11.