18. General duty of Corporation.—It shall be the general duty of a Corporation so to exercise its
powers as progressively to provide or secure or promote the provision of, an efficient, adequate,
economical and properly co-ordinated system of road transport services in the 1
[Union territory of Delhi
or part thereof] for which it is established and in any extended area:
Provided that nothing in this section shall be construed as imposing on a Corporation, either directly
or indirectly, any form of duty or liability enforceable by proceedings before any Court or Tribunal to
which it would not otherwise be subject.
19. Powers of Corporation.—(1) Subject to the provisions of this Act, a Corporation shall have
power—
(a) to operate road transport services in the 2
[Union territory of Delhi] and in any extended area;
(b) to provide for any ancillary service;
(c) to provide for its employees suitable conditions of service including fair wages, establishment
of provident fund, living accommodation, places for rest and recreation and other amenities;
3
[(d) to authorise the issue of passes to its employees and other persons either free of cost or at
concessional rates and on such conditions as it may deem fit to impose;
(e) to authorise the grant of refund in respect of unused tickets and concessional passes.]
(2) Subject to the provisions of this Act, the powers conferred by sub-section (1) shall include
power—
(a) to manufacture, purchase, maintain and repair rolling stock, vehicles, appliances, plant,
equipment or any other thing required for the purpose of any of the activities of the Corporation
referred to in sub-section (1).
Explanation.—In this clause, the expression “manufacture” does not include the construction of
the complete unit of a motor vehicle except for purposes of experiment or research;
1. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “State or part of the State” (w.e.f. 3-9-1971).
2. Subs. by s. 7(a) and the First Schedule, ibid., for “State” (w.e.f. 3-9-1971).
3. Ins. by Act 28 of 1959, s. 4 (w.e.f. 1-9-1959)
10
(b) to acquire and hold such property, both movable and immovable, as the Corporation may
deem necessary for the purpose of any of the said activities, and to lease, sell or otherwise transfer
any property held by it;
(c) to prepare schemes for the acquisition of, and to acquire, either by agreement or compulsorily
in accordance with the law of acquisition for the time being in force in the 1
[Union territory of Delhi]
and with such procedure as may be prescribed, whether absolutely or for any period, the whole or any
part of any undertaking of any other person to the extent to which the activities thereof consist of the
operation of road transport services in 2
[that Union territory] or in any extended area;
(d) to purchase by agreement or to take on lease or under any form of tenancy any land and to
erect thereon such buildings as may be necessary for the purpose of carrying on its undertaking;
(e) to authorise the disposal of scrap vehicles, old tyres, used oils, 3
[any other stores of scrap
value, or such other stores as may be declared to be obsolete in the prescribed manner].
(f) to enter into and perform all such contracts as may be necessary for the performance of its
duties and the exercise of its powers under the Act;
(g) to purchase vehicles of such type as may be suitable for use in the road transport services
operated by the Corporation;
(h) to purchase or otherwise secure by agreement vehicles, garages, sheds, office buildings,
depots, land, workshops, equipment, tools, accessories to and spare parts for vehicles, or any other
article owned or possessed by the owner of any other undertaking for use thereof by the Corporation
for the purposes of its undertaking;
(i) to do anything for the purpose of advancing the skill of persons employed by the Corporation
or the efficiency of the equipment of the Corporation or of the manner in which that equipment is
operated, including the provision by the Corporation, and the assistance by the Corporation to others
for the provision of facilities for training, education and research;
(j) to enter into and carry out agreements with any person carrying on business as a carrier of
passengers or goods providing for the carriage of passengers or goods on behalf of the Corporation by
that other person at a through fare or freight.
(k) to provide facilities for the consignment, storage and delivery of goods;
(l) to enter into contracts for exhibition of posters and advertising boards on and in the vehicles
and premises of the Corporation and also for advertisement on tickets and other forms issued by the
Corporation to the public;
(m) with the prior approval of the State Government to do all other things to facilitate the proper
carrying on of the business of the Corporation.
4
[(n) to determine with the previous approval of the State Government, and in case of a road
transport service operated in any extended area, also with the previous approval of the Government of
the State within which such extended area is situated, fares and freights for the carriage of passengers
and goods in any road transport service provided by the Corporation.]
(3) Nothing in this section shall be construed as authorising a Corporation, except with the previous
approval of the State Government—
(i) to manufacture or maintain anything which is not required directly or indirectly for use for the
purpose of the undertaking of the Corporation or to repair, store, or provide any service for, any
vehicle which does not belong to the Corporation or is not used directly or indirectly for the purpose
of its undertaking;
1. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “State concerned” (w.e.f. 3-9-1971).
2. Subs. by s. 7(a) and the First Schedule, ibid., for “that State” (w.e.f. 3-9-1971).
3. Subs. by Act 63 of 1982, s. 11, for “or any other stores of scrap value” (w.e.f. 13-11-1982).
4. Ins. by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 13-11-1971).
11
(ii) to purchase any vehicle for the purpose of sale to another person;
(iii) to sell or supply to any person lubricants, spare parts, or equipment for or accessories to,
vehicles;
(iv) to let vehicles on hire for the carriage of passengers or goods except as expressly provided by
or under this Act.
(4) Except as otherwise provided by this Act nothing in the foregoing provisions shall be construed as
authorising the Corporation to disregard any law for the time being in force.
(5) Where a Corporation acquires the whole or any part of an undertaking of any other person, the
Corporation shall, in appointing its 1
[officers and other employees], take into consideration the claims of
employees employed in that undertaking.
(6) The provisions of this section shall not be construed as limiting any power of a Corporation
conferred by or under any subsequent provision of this Act.
2
[19A. Disposal of unclaimed articles and property.—(1) When any articles or goods have come
into the possession of a Corporation for carriage or otherwise and are not claimed by the owner or any
other person appearing to the Corporation to be entitled thereto, the Corporation shall, if such owner or
other person is known, cause a notice to be served upon him requiring him to remove the articles or goods
within seven days of the service of such notice.
(2) If such owner or other person is not known or the notice cannot be served upon him or he does not
comply with the requisition in the notice, the Corporation may, after the expiration of such period as may
be specified by regulations made under this Act, sell the articles or goods by public auction and shall,
after deducting from the sale-proceeds expenses for holding the sale or any amount which may be due to
the Corporation, credit the surplus sale-proceeds, if any, to the Fund of the Corporation; and the
sale-proceeds so credited may be paid on demand to any person who establishes his right thereto in a
court of competent jurisdiction or within one year of such sale to the satisfaction of the Corporation.
19B. Corporation to obtain the approval of the Central Government in certain cases.—In the
exercise of any of its powers under this Act, the Corporation shall not incur on any single work, service or
scheme or for any other purpose a capital expenditure of more than twenty-five lakhs of rupees except
with the previous approval of the Central Government.]
20. Extension of the operation of the road transport service of a Corporation to areas within
another State.—(1) If a Corporation considers it to be expedient in the public interest to extend the
operation of any of its road transport services to any route or area situated within another State, it may,
with the permission of the State Government, negotiate with the Government of the other State regarding
the proposed extension.
(2) If the Government of the other State approves the proposed extension, the Corporation shall
prepare a scheme for the purpose and forward the same to the other Government for its consent, and after
such consent has been received, the Corporation may, with the previous approval of the State
Government, sanction the scheme.
(3) After the scheme has been so sanctioned, it shall be competent for the Corporation to extend the
operation of its road transport service to such route or area and when the operation of such service is so
extended, the Corporation shall operate the service on that route or in that area subject to the provisions of
any law in force in the other State within which such route or area is situated.
(4) The Corporation may, from time to time, alter or extend the scheme sanctioned under
sub-section (2) by a supplementary scheme prepared and sanctioned in the manner provided in the
foregoing provisions of this section.
1. Subs. by Act 63 of 1982, s. 11, for “officers and servants” (w.e.f. 13-11-1982).
2. Ins. by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).
12
21. Carriage of mails.—Notwithstanding anything contained in the Motor Vehicles
Act, 1939 (4 of 1939), a Corporation shall, if so required by the Central Government, carry mails at such
rates and on such terms and conditions as may be specified in this behalf by 1
[that Government].