34. Directions by the State Government.—(1) The State Government may, after consultation with a
Corporation established by such Government, give to the Corporation general instructions to be followed
by the Corporation, and such instructions may include directions relating to the recruitment, conditions of
service and training of its employees, wages to be paid to the employees, reserves to be maintained by it
and disposal of its profits or stocks.
(2) In the exercise of its powers and performance of its duties under this Act, the Corporation shall
not depart from any general instructions issued under sub-section (1) except with the previous permission
of the State Government.
1. Subs. by Act 28 of 1959, s. 7, for “A Corporation may sanction” (w.e.f. 1-9-1959).
2. Subs. by s. 8, ibid., for section 33 (w.e.f. 1-9-1959).
3. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “the Legislature of the State” (w.e.f. 3-9-1971).
15
35. Returns and reports.—(1) Every Corporation shall furnish to the State Government such returns,
statistics, accounts and other information with respect to its property or activities or in regard to any
proposed scheme as the State Government may from time to time require.
(2) Without prejudice to the provisions of sub-section (1), a Corporation shall, as soon as possible
after the end of each financial year, submit to the 1
[State Government] a report on the exercise and
performance by it of its powers and duties under this Act during that year and on its policy and
programme.
2
[(3) The State Government shall cause the annual report referred to in sub-section (2) to be laid
before 3
[each House of Parliament].]
36. Power to order inquiries.—(1) The State Government, with a view to satisfy itself that the
powers and duties of a Corporation established by that Government are being exercised and performed
properly, may, at any time, appoint any person or persons to make inquiries into all or any of the activities
of the Corporation and to report to the State Government the result of such inquiries.
(2) The Corporation shall give to the person or persons so appointed all facilities for the proper
conduct of the inquiries and shall produce before, or furnish to, the person or persons any document,
account or information in the possession of the Corporation which such person or persons demand for the
purposes of the inquiries.
37. Power to control a part of the undertaking of a Corporation.—(1) If on receipt of the report of
any inquiry held under section 36 or otherwise, the State Government is satisfied that it is necessary so to
do in the public interest, the State Government may, by notification in the Official Gazette, authorise any
person to take over from the Corporation, and so long as that notification is in force, to administer in
accordance with such directions as may be issued from time to time by the State Government such part of
the undertaking of the Corporation as may be specified in the notification, and any person so authorised
may, for the purpose of so administering the said part of the undertaking exercise all or any of the powers
of the Corporation or of any officer of the Corporation under this Act, issue such directions as he thinks
fit to the 4
[officers or other employees] of the Corporation and employ any outside agency.
(2) The State Government may by such notification direct that all charges and expenses incurred by
the person so authorised together with such remuneration as the State Government may allow from time
to time to such person shall be paid within such time as may be fixed by the State Government from the
fund of the Corporation, and if the expenses are not so paid, the State Government may make an order
directing the persons having the custody of that fund to pay to the person so authorised such expenses in
priority to any other charges against such fund and he shall, so far as the funds to the credit of the
Corporation admit, comply with the order of the State Government.
5
[(3) Every notification issued under this section together with a report on the circumstances leading
to its issue shall be laid before 6
[each House of Parliament], as soon as may be, after it is issued.]
38. Power to supersede a Corporation.—(1) If the State Government is of opinion that a
Corporation established by that Government is unable to perform, or has persistently made default in the
performance of the duties imposed on it by or under the provisions of this Act or has exceeded or abused
its powers, the State Government may, 7*** by notification in the Official Gazette, supersede the
Corporation for such period as may be specified in the notification:
Provided that before issuing a notification under this sub-section the State Government shall give a
reasonable time to the Corporation to show cause why it should not be superseded and shall consider the
explanation and objections, if any, of the Corporation.
1. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “Central and the State Governments” (w.e.f. 3-9-1971).
2. Ins. by Act 28 of 1959, s. 9 (w.e.f. 1-9-1959).
3. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “the Legislature of the State” (w.e.f. 3-9-1971).
4. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “officers or servants” (w.e.f. 13-11-1982).
5. Ins. by Act 28 of 1959, s. 10 (w.e.f. 1-19-1959).
6. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “the Legislature of the State” (w.e.f. 3-9-1971).
7. The words “with the previous approval of the Central Government,” omitted by s. 7(a) and the First Schedule, ibid.
(w.e.f. 3-9-1971).
16
(2) Upon the publication of a notification under sub-section (1) superseding a Corporation—
(a) all the 1
[Directors] of the Corporation shall, as from the date of supersession, vacate their
offices as such 1
[Directors];
(b) all the powers and duties which may, by or under the provisions of this Act or of any other
law, be exercised or performed by or on behalf of the Corporation shall, during the period of
supersession, be exercised and performed by such person or persons as the State Government may
direct;
(c) all property vested in the Corporation shall, during the period of supersession, vest in the State
Government.
(3) On the expiration of the period of supersession specified in the notification issued under
sub-section (1), the State Government may—
(a) extend the period of supersession for such further term as it may consider necessary; or
(b) reconstitute the Corporation in the manner provided in section 5.
39. Liquidation of a Corporation.—(1) No provision of any law relating to the winding up of
companies or corporations shall apply to a Corporation, and no Corporation shall be placed in liquidation
save by order of the State Government concerned and save in such manner as may be directed by that
Government:
Provided that no such order shall be made by any State Government except with the previous
approval of the Central Government.
(2) In the event of a Corporation being placed in liquidation, the assets of the Corporation, after
meeting the liabilities, if any, shall be divided among the 2
[State Government] and such other parties, if
any, as may have subscribed to the capital in proportion to the contribution made by each of them to the
total capital of the Corporation.
40. Compensation for acquisition of road transport undertakings.—Whenever a Corporation
acquires under this Act the whole or any part of any undertaking, there shall be paid by the Corporation
compensation the amount of which shall be determined in the manner and in accordance with the
procedure hereinafter set out, that is to say,—
(a) where the amount of compensation can be fixed by agreement, it shall be paid in accordance
with such agreement;
(b) where no such agreement can be reached, the amount shall be determined by an arbitral
Tribunal consisting of one nominee of the Corporation, one nominee of the person to be
compensated, and a Chairman to be nominated by the Chief Justice of the 3
[High Court of Delhi];
(c) an appeal shall 4
[lie to the High Court of Delhi] against the decision of the Tribunal and the
5
[order of that High Court] on such appeal shall be final.
41. [Corporation to be deemed to be a local authority and provision as to third party
risks].—Omitted by the Road Transport Corporations (Amendment) Act, 1959 (28 of 1959),
s. 11 (w.e.f. 1-9-1959).
42. Power of entry.—Whenever it is necessary for a Corporation to carry out any of its works or to
make any survey, examination or investigation, preliminary or incidental to the exercise of powers or the
performance of duties by the Corporation under this Act, any 6
[officer or other employee] of the
Corporation generally or specially empowered by the Corporation may, with the previous permission of
1. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “members” (w.e.f. 13-11-1982).
2. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “Central and the State Government” (w.e.f. 3-9-1971).
3. Subs. by s. 7(a) and the First Schedule, ibid., for “High Court exercising jurisdiction in relation to the State concerned”
(w.e.f. 3-9-1971).
4. Subs. by s. 7(a) and the First Schedule, ibid., for “lie to the High Court” (w.e.f. 3-9-1971).
5. Subs. by s. 7(a) and the First Schedule, ibid., for “order of the High Court” (w.e.f. 3-9-1971).
6. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “officer or servant” (w.e.f. 13-11-1982).
17
the District Magistrate, enter upon any land or premises between sunrise and sunset, after giving reasonable notice of the intention to make such entry to the owner or occupier of such land or premises, and at
any other time, with the consent in writing of the owner of occupier of such land or premises, for the
purpose of the carrying out of such works or the making of such survey, examination or investigation.
43. 1
[Directors],
2
[Officers and other employees] of a Corporation to be public servants.—All
1
[Directors] of a Corporation, and all 2
[officers and other employees] of a Corporation, whether appointed
by the State Government or the Corporation, shall be deemed, when acting or purporting to act in
pursuance of any of the provisions of this Act or of any other law, to be public servants within the
meaning of section 21 of the Indian Penal Code (45 of 1860).
44. Power to make rules.—(1) The State Government may, by notification in the Official Gazette,
make rules to give effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
3
[(a) the conditions and manner of appointment of Directors of a Corporation, the representation
in the Board of the Central and State Governments, and where shares are issued to other parties under
sub-section (3) of section 23 of such shareholders and generally all matters relating to the constitution
of the Board;]
4
[(b) remuneration, allowances or fees paid to the Directors of the Corporation or other persons
associated with the Board under section 10;]
(c) the term of office of, the manner of filling casual vacancies among 5
[Directors] of the
Corporation;
(d) the number of 5
[Directors] necessary to constitute a quorum at a meeting of the 6
[Board];
(e) the conditions of appointment and service and the scales of pay of the 7
[Managing Director,
the Chief Accounts Officer, the Financial Adviser or, as the case may be, the Chief Accounts
Officer-cum-Financial Adviser] of the Corporation;
(f) the number and term of office of, the allowances to be paid to, the procedure to be followed
by, and the manner of filling casual vacancies among, members of an Advisory Council;
8
[(ff) the procedure in accordance with which any stores may be declared obsolete under
sub-section (2) of section 19;]
(g) the manner in which the shares of the Corporation shall be allotted, transferred or redeemed;
(h) the manner in which the net profits of the Corporation shall be utilised;
(i) the date by which, and the form in which, the budget shall be prepared and submitted in each
year under sub-section (1) of section 32;
9
[(j) the form in which the annual statement of accounts shall be prepared;]
10* * * * *
(l) the form in which the returns, statistics or reports shall be submitted under section 35;
(m) the procedure to be followed by an arbitral Tribunal under section 40;
1. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “members” (w.e.f. 13-11-1982).
2. Subs. by s. 16 and the Schedule, ibid., for “officers and servants” (w.e.f. 13-11-1982).
3. Subs. by s. 16 and the Schedule, ibid., for clause (a) (w.e.f. 13-11-1982).
4. Subs. by s. 16 and the Schedule, ibid., for clause (b) (w.e.f. 13-11-1982).
5. Subs. by s. 16 and the Schedule, ibid., for “members” (w.e.f. 13-11-1982).
6. Subs. by s. 16 and the Schedule, ibid., for “Corporation” (w.e.f. 13-11-1982).
7. Subs. by s. 16 and the Schedule, ibid., for “Chief Executive Officer or General Manager and the Chief Accounts Officer”
(w.e.f. 13-11-1982).
8. Ins. by s. 16 and the Schedule, ibid. (w.e.f. 13-11-1982).
9. Subs. by Act 28 of 1959, s. 12, for clause (j) (w.e.f. 1-9-1959).
10. Omitted by s. 12, ibid. (w.e.f. 1-9-1959).
18
1
[(mm) the service of notices and orders under this Act;]
(n) any other matter which has to be, or may be, prescribed.
45. Power to make regulations.—(1) A Corporation may with the previous sanction of 2
[the State
Government and by notification in the Official Gazette], make regulations, not inconsistent with this Act
and the rules made thereunder, for the administration of the affairs of the Corporation.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely:—
(a) the manner in which, and the purposes for which, persons may be associated with the
3
[Board] under section 10;
(b) the time and place of meetings of the 3
[Board] and the procedure to be followed in regard to
transaction of business at such meetings;
(c) the conditions of appointment and service and the scales of pay of officers and 4
[other
employees of the Corporation other than the Managing Director, the Chief Accounts Officer and the
Financial Adviser or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser];
5
[(d) the issue of passes to the employees of the Corporation and other persons under section 19;
(e) the grant of refund in respect of unused tickets and concessional passes under section 19.]
6
[(f) the period after the expiration of which unclaimed articles or goods may be sold by public
auction;
(g) the regulation of the carriage of passengers and goods in the road transport services of the
Corporation.]
7
[45A. Every rule and regulation to be laid before State Legislature.—Every rule and every
regulation made under this Act shall be laid, as soon as may be after it is made, before the State
Legislature.]
46. Penalty for breach of rules.—The State Government may, by rule, provide that the breach of
any rules made by it under section 44 6
[or any regulations made by a Corporation under section 45] shall
be punishable with fine which may extend to five hundred rupees, and when the breach is a continuing
one, with a further fine not exceeding twenty rupees for every day after the date of the first conviction
during which the offender is proved to have persisted in the offence.
47. Special provisions relating to Bombay.—(1) The body known as the Bombay State Road
Transport Corporation and the Board thereof, referred to in the notification of the Government of
Bombay, No. 1780/5, dated the 16th November, 1949 (hereinafter referred to as “the existing
corporation” and “Board” respectively) shall, notwithstanding any defect in, or invalidity of, the
enactment or order under which they were constituted, be deemed for all purposes to have been validly
constituted as if all the provisions of the said notification had been included and enacted in this section
and this section had been in force continuously on and from the said date, and accordingly—
(a) all action by, and all transactions with, the existing Corporation or Board, including any
action or transaction by which any property, asset or right was acquired or any liability or obligation,
whether by contract or otherwise, was incurred, shall be deemed to have been validly and lawfully
taken or done; and
1. Ins. by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).
2. Subs. by Act 4 of 2005, s. 2 and the Schedule, for “the State Government” (w.e.f. 11-1-2005).
3. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “Corporation” (w.e.f. 13-11-1982).
4. Subs. by s. 16 and the Schedule, ibid., for “servants of the Corporation, other than the Chief Executive Officer or General
Manager and the Chief Accounts Officer” ( w.e.f. 13-11-1982).
5. Ins. by Act 28 of 1959, s. 13 (w.e.f. 1-9-1959).
6. Ins. by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).
7. Ins. by Act 4 of 2005, s. 2 and the Schedule (w.e.f. 11-1-2005)
19
(b) no suit, prosecution or other legal proceeding shall lie against the Government of Bombay or
any member of the Board or any officer or servant of the existing Corporation in respect of any action
taken by, or in relation to the setting up of, the existing Corporation or Board merely on the ground of
any defect in, or invalidity of, the enactment or order under which the existing Corporation or Board
was constituted.
(2) On the establishment of a Corporation under section 3 in the State of Bombay (hereinafter referred
to as “the new Corporation”),—
(a) the existing Corporation and Board shall be deemed to be dissolved and shall cease to
function;
(b) all property and assets vesting in the existing Corporation shall vest in the new Corporation;
(c) all rights, liabilities and obligations of the existing Corporation, whether arising out of any
contract or otherwise, shall be the rights, liabilities and obligations, respectively, of the new
Corporation; and
(d) all licences and permits granted to, all contracts made with, and all instruments executed on
behalf of, the existing Corporation or Board shall be deemed to have been granted to, made with, or
executed on behalf of, the new Corporation and shall have effect accordingly.
1
[47A. Special provision for reconstitution or dissolution of certain Corporations.—(1) Where on
account of the reorganisation of States under the States Reorganisation Act, 1956 (37 of 1956),
2
[or any
other enactment relating to reorganisation of States, the whole or any part of a State in respect of which a
Corporation was, immediately before the day on which the reorganisation takes place,] functioning and
operating, is transferred on that day to another State and by reason of such transfer, it appears to the State
Government necessary or expedient that the Corporation should be reconstituted or re-organised in any
manner whatsoever or that it should be dissolved, the State Government may frame a scheme for the
reconstitution, reorganisation or dissolution of the Corporation including proposals regarding the
formation of new Corporations the amalgamation of the Corporation with any other Corporation, body
corporate or a commercial undertaking of another State Government, the transfer of the assets, rights and
liabilities of the Corporation in whole or in part to any other Corporation, body corporate or a commercial
undertaking of another State Government, and the transfer or re-employment of any workmen of the
Corporation, and the State Government may forward the scheme to the Central Government for approval.
Explanation.—For the purpose of framing any scheme under this sub-section, “State Government”,—
3
[(i) in relation to the Bombay State Road Transport Corporation, shall mean the
Government of the State of Maharashtra or of Gujarat as formed under the Bombay Reorganisation
Act, 1960 (11 of 1960);]
(ii) in relation to the PEPSU Road Transport Corporation, shall mean the Government of the State
of Punjab, as formed under the provisions of the States Reorganisation Act, 1956 (37 of 1956);
4
[(iii) in relation to the Assam State Road Transport Corporation, shall mean the Government of
the State of Assam or of Meghalaya as formed under the North-Eastern Areas (Reorganisation) Act,
1971 (81 of 1971).]
(2) On receipt of any such scheme, the Central Government may, after consultation with the State
Governments concerned, approve the scheme with or without modifications and for the purpose of giving
effect to the approved scheme, the Central Government may, from time to time, make such order in
relation thereto as it thinks fit and every order so made shall have effect notwithstanding anything
contained in this Act.
1. Ins. by Act 87 of 1956, s. 2 (w.e.f. 28-12-1956).
2. Subs. by Act 11 of 1960, s. 71, for “the whole or any part of a State in respect of which a Corporation was, immediately
before the 1st day of November, 1956,” (w.e.f. 25-4-1960).
3. Subs. by s. 71, ibid., for clause (i) (w.e.f. 25-4-1960).
4. Ins. by Act 81 of 1971, s. 73 (w.e.f. 21-1-1972).
20
(3) Any order made under sub-section (2) may provide for all or any of the following matters,
namely:—
(a) the dissolution of the Corporation, notwithstanding anything contained in section 39;
(b) the reconstitution or reorganisation, in any manner whatsoever, of the Corporation including
the establishment, where necessary, of more than one Corporation in any State;
(c) the amalgamation of two or more Corporations, or of one Corporation with any other body
corporate or a commercial undertaking of any other State Government;
(d) the extension of the area for which the Corporation is established, or the exclusion of any area
therefrom;
(e) the transfer, in whole or in part, of the assets, rights and liabilities of the Corporation
including the transfer of any licences or permits granted to the Corporation, to any other Corporation,
body corporate or a commercial undertaking of any other State Government, and the terms and
conditions of such transfer;
(f) the transfer or re-employment of any workmen of the Corporation to, or by,
any such transferee, and, subject to the provisions of section 111 of the States Reorganisation
Act, 1956 (37 of 1956) 1
[or any other enactment relating to reorganisation of States], the terms and
conditions of service applicable to such workmen after such transfer or re-employment;
(g) such incidental, consequential and supplemental matters as may be necessary to give effect to
the approved scheme.
(4) Where an order is made under this section transferring the assets, rights and liabilities of any
Corporation, then, by virtue of that order, such assets, rights and liabilities of the Corporation shall vest
in, and be the assets, rights and liabilities of, the transferee.]
1
[48. Transitional provision relating to Bombay State Road Transport Corporation.—
Notwithstanding anything contained in section 47A, it shall be lawful for the Government of the State of
Bombay to frame a scheme under sub-section (1) thereof and forward the same to the Central
Government before the 1st day of May, 1960, and in such a case, the power conferred on the Central
Government to make an order under sub-section (2) thereof may be exercised before that day but no order
so made shall take effect till that day.]