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ROAD TRANSPORT CORPORATIONS ACT

Ministry of Law and Justice

Act nº 64 of 1950


  • Chapter I
  • Chapter II
  • Chapter IIA. Subsidiary Corporations
  • Chapter III
  • Chapter IV
  • Chapter V
  • Chapter VI
  • Act nº 64 of 1950

Chapter I

Section 1. Short title, extent and commencement

(1) This Act may be called The RoadTransport Corporations Act, 1950.

(2) It extends to the whole of India1 [* * *] 2 [* * *].

3 [Providedthat on and from the commencement of the Delhi Road Transport Laws (Amendment)Act, 1971, this Act, as amended by the said Act, shall extend to, and be inforce in, the Union territory of Delhi.]

4 [Provided further thaton and from the commencement of the Road Transport Corporations (Amendment) Act,1982, this Act as amended by the said Act, shall extend to the Union territoryof Mizoram.]

(3) It shall come into force in aState on such date as the Central Government may, by notification in theOfficial Gazette appoint in this behalf for such State and different dates maybe appointed for different States.

1.Words "the State of Jammu and Kashmir and" omitted by the CentralLaws (Extension to Jammu and Kashmir) Act, 1968 (25 of 1968), section 2 andSchedule (15-8-1968).

2.Words "except the Union territory of Delhi" omitted by Delhi RoadTransport Laws (Amdt.) Act, 1971 (71 of 1 971), section 2 (w.r.e.f. 3-11-1971).

3. Inserted, by Delhi Road Transport Laws (Amdt.) Act, 1971 (71 of 1 971),section 2 (w.r.e.f. 3-11-1971).

4. Inserted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982),section 2 (15-11-1982).


Section 2. Definitions

In this Act, unless the context otherwise requires,-

(a) "ancillary service" means any subsidiary service which provides amenities or facilities to per­sons malting use of any road transport service of a Corporation;

1[(aa) "Board" means the Board of Directors of a Corporation;]

(b) "Corporation" means a Road Transport Corporation established under section 3;

1[(bb) "Director" means a member of the Board;]

(c) "extended area" means any area or route to which the operation of any road transport service of a Corporation has been extended in the manner provided in section 20;

(d) "prescribed" means prescribed by rules made under this Act;

(e) "road transport service" means a service carrying passengers or goods or both by road in vehicles for hire or reward;

(f) "vehicle" means any mechanically propelled vehicle, used or capable of being used for the purpose of road transport, and includes a tram-car, a trolly-vehicle and a trailer;

(g) words and expressions used but not defined in this Act and defined in the Motor Vehicles Act, 1939, have the meaning assigned to them in that Act;

2[ * * * * *]

1. Inserted by the Road Transport Corporation (Amendment) Act, 1982 (63 of 1982), section 16 and the Schedule (15-11-1982).

2. Omitted by 3 A.L.O. (w.r.e.f. 1-11-1956).


Chapter II

Section 3. Establishment of Road Transport Corporations in the States

Section 4. Incorporation

Every Corporation shall be a body corporate by the name notified under section 3 having perpetual succession and a common seal, and shall by the said name sue and be sued.

Section 5. Management of Corporation and Board of Directors

(1) The general superintendence, direction and management of the affairs and business of a Corporation shall vest in a Board of Directors which, with the assistance of its committees and Managing Director, may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation.

(2) The Board shall consist of a Chairman and such other Directors, being not less than five and not more than seventeen, as the State Government may think fit to appoint.

(3) The State Government may, if it so thinks fit appoint one of the other Directors as the Vice-Chairman of the Board.

(4) Rules made under this Act shall provide for the representation, both of the Central Government and of the State Government concerned, on the Board in such proportion as may be agreed to by both the Government and of appointment by each Government of its own representatives thereto and where the capital of a Corporation is raised by the issue of shares to other parties under sub-sec. (3) of section 23, provision shall also be made for the representation of such shareholders on the Board and the manner in which the representatives shall be elected by such share-holders.

(5) The term of office of and the manner of filling casual vacancies among the Directors shall be such as may be prescribed.]

Section 6. Disqualification for being chosen as, or being, a member of a Corporation

1[(1)] A person shall be disqualified for being chosen as, or for being, a2[Director of a Corporation]-

(a) if he is found to be a lunatic or a person of unsound mind; or

(b) if he has been adjudged insolvent; or

(c) if he has been convicted of an offence involving moral turpitude; or

(d) if he has, directly or indirectly, any interest in any subsisting contract, made with, or in any work being done, for, the Corporation except as a shareholder (other than a director) in an incorpo­rated company, provided that where he is a shareholder he shall disclose to the State Government the nature and extent of shares held by him in such company; or

(e) if he has any financial interest in any other road transport undertaking.

3[(2) Nothing in clause (d) of sub-section (1) shall be deemed to disqualify the4[Managing Director of a Corporation for being chosen as, or for being, a5[Director] thereof.]]

6[(3) Nothing in clause (e) of sub-section (1) shall be deemed to disqualify,-

(a) any officer or other employee of the Government for being chosen as, or for being, a Director of a Corporation.

(b) any officer or other employee of a Corporation for being chosen as, or for being, a Director of another Corporation.]

1. Original section 6 was renumbered as sub-section (1) thereof by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 2 (1-9-1959).

2. Substituted for the words "member of a Corporation" by the Road Transport Corporation's (Amdt.) Act, 1982 (63 of 1982), section 4(a) (15-11-1982).

3. Inserted by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 2 (1-9-1959).

4. Substituted for the words "Chief Executive Officer or General Manager" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 4(b) (15-11-1982).

5. Substituted for the word "member" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 4(b) (15-11-1982).

6. Inserted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 4(b) (15-11-1982), S.4(c) (15-11-1982).


Section 7. Resignation of office by the Chairman or a [Director]

1[7. Resignation of office by the Chairman or a Director]

The Chairman or any other1[Director] of a Corporation may resign his office by giving notice in writing to the State Government and, on such resignation being accepted by that Government, shall be deemed to have vacated his office.

1. Substituted for the word "member" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and the Schedule. (15-11-1982).


Section 8. Removal of Chairman and members from office

1[1] The State Government may remove from office the Chairman or any other1[Director] of the Corporation who-

(a) is or becomes subject to any of the disqualifications mentioned in section 6; or

(b) without excuse sufficient in the opinion of the State Government, is absent for more than four consecutive meetings of the2[Board].

Provided that no3[Director appointed] by the Central Government shall be removed from office without the concurrence of that Government.

4[(2) The State Government may terminate the appointment of any Director after giving him notice for such period (being not less than one month) as may be prescribed :

Provided that the appointment of a Director appointed by the Central Government shall not be terminated under this sub-section without the concurrence of that Government."]

1. Section 8 renumbered as sub-section (1) thereof and in sub-section (1) as so renumbered the word, "member" substituted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 5(a)(i) (5-11-1982).

2. Substituted for the word "Corporation" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 5(a)(i) (5-11-1982), section 5(a)(ii).

3. Substituted for the words "member nominated" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 5(a)(i) (5-11-1982), section 5(a)(iii).

4. Inserted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 5(a)(i) (5-11-1982), section 5(b) (5-11-1982).


Section 9. Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of a [Corporation or its Board.]

1[9. Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of a Corporation or its Board.]

No act or proceeding of a Corporation shall be invalid by reason only of the existence of any vacancy2[in its Board] or any defect in the constitution thereof.

1. Substituted for the word "Corporation" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and Schedule. (15-11-1982).

2. Substituted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and Schedule. (15-11-1982) for the words "amongst its members."


Section 10. Temporary association of persons with a [Board] for particular purposes

10 . Temporary association of persons with a1[Board] for particular purposes

(1) A1[Board] may associate with itself for any particular purpose in such manner as may be determined by regulations made under this Act any person whose assistance or advice it may desire.

(2) A person associated with it by the1[Board] under sub-section (1) for any purpose shall have a right to take, part in the discussions of the1[Board] relevant to that purpose, but shall not have a right to vote at a meeting of the1[Board].

1. Substituted for the word "Corporation" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and Schedule. (15-11-1982).


Section 11. Meetings of Corporations

(1) A1[Board] shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to transaction of business at its meetings as may be provided by regulations made under this Act: Provided that the1[Board] shall meet at least once in every three months.

(2) The person to preside at a meeting of a1[Board shall be the chairman thereof, or in his absence from any meeting the Vice-Chairman, if any, or in the absence of both the Chairman and the Vice-Chairman,2[such Director as may be chosen by the Directors present] from among themselves to pre­side.

(3) All questions at a meeting of a1[Board] shall be decided by a majority of votes of the members present, and in the case of equality of votes, the Chairman or, in his absence, any other person presiding shall have a second or casting vote.

1. Substituted for the word "Corporation" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and the Schedule. (15-11-1982).

2. Substituted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and the Sch. (15-11-1982) ,for the words "such member as may be chosen by the members present."


Section 12. Power to appoint committees and delegate functions

1 [(1)] A 1 [Board] may from to time, by resolution passed at a meeting-

(a) appoint committees 2 [consisting of Directors] for performing such functions as may be specified in the resolution;

(b) delegate to any such committee or to the Chairman or Vice-Chairman, subject to such conditions and limitations, if any, as may be specified in the resolution, such of its powers and duties as it may think fit;

(c) authorised the 3 [Managing Director] 4 [or any other officer of the Corporation] subject to such conditions and limitations, if any, as may be specified in the resolution to exercise such powers and perform such duties as it may deem necessary for the efficient day-to-day administration of its business.

5 [(2) The Chairman, Vice-Chairman or Managing Director may delegate any of his powers and duties [including powers and duties delegated to him under sub-section (1)] to any officer of the Corpo­ration, and the officer to whom such powers and duties are delegated, shall exercise and perform such powers and duties under the control and supervision of the Managing Director."]

1. Section 12 renumbered as sub-section (1) thereof and in sub-section (1) as so renumbered in opening portion the word "Corporation" substituted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), Section. 6(a)(i) (15-11-1982).

2. Substituted for the words "of its members" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), Section. 6(a)(i) (15-11-1982), section 6(a)(ii).

3. Substituted for the words "Chief Executive Officer or General Manager" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), Section. 6(a)(i) (15-11-1982), section 6(a)(iii).

4. Inserted by the Road Transport Corporation (Amdt.) Act, 1959 (28 of 1959), section 3(1-9-1959).

5. Inserted by the Act 63 of 1982, section 6(b) (15-11 1982).


Section 13. Authentication of orders and other instruments

1[ 13 . Authentication of orders and other instruments.-

All orders and decisions of the Board shall be authenticated by the signature of the Secretary or by any such other officer of the Corporation as may be authorised in this behalf by the Board or under the regulations made under section 45 and all other instruments issued by a Board shall be authenticated by the signature of the Managing Director or any other officer of the Corporation authorised in like manner in this behalf.]

1. Substituted by the State Corporations (Amdt.) Act, 1982 (63 of 1982), section 7(15-11-1982).