Rajasthan High Court
Lodha & Modi, JJ.
Jwala Prasad - Appellant
Versus
State of Rajasthan - Respondents
D.B. Civil Misc. Writ Petition No. 1083 of 1972
Decided On : November 22, 1972
Sec. 38 deals with the powers of the State Government to supersede a Corporation. It is, a provision independent of secs. 36 and 37. Sec. 38 does not speak of receipt of the report of any inquiry held under sec. 36. It provides that if the Government is of opinion that a Corporation is unable to perform or has persistently made defaults in performance of duties imposed upon it or has exceeded or abused its powers, it may supersede the Corporation. This section does not envisage any inquiry. It is a different thing to say that the State Government must act honestly and like a reasonable person to form the opinion and the opinion must not be altogether arbitrary and must be based on some material. But that does not mean that it must get a regular inquiry conducted as contemplated by sec 36. The power under sec. 38 is not governed by sec. 36 of the Act and the impugned order cannot be struck down because the State Government did not get any inquiry made against the Corporation under sec. 36 of the Act. (Para 22)
"GOVERNMENT OF RAJASTHAN
Home (Group VII) Department
No. F. 7 (3)(3) Par /72 Dated the 20th May, 1972.
Notification
Whereas the State Government issued a notice under sec. 38 of the Road Transport Corporation Act, 1950 (Central Act LXIV of 1950) to the Rajasthan State Road Transport Corporation on 18th April, 1972 to show cause why it should not be superseded:
And whereas the State Government after considering the explanation and objections of the Corporation is of the opinion that the Corporation is unable to perform and has persistently made default in the performance of the duties imposed on it by or under the provision of the Road Transport Corporations Act and has further abused its powers.
Now, therefore, in exercise of the powers conferred upon it under sub-sec. 1 of sec. 38 of the Road Transport Corporation Act, 1950 (Central Act LXIV of 1950) the State Government with the approval of the Central Gov. hereby supersedes the Rajasthan State Road Transport Corporation for a period of six months.
By Order of Governor
Sd/- Ram Singh
Commissioner for Home Affairs,
& Secretary to Government."
2. In exercise of its powers under sec. 3 of the Road Transport Corporation Act, 1950 (Act No. LXIV of 1950) the Government of Rajasthan established a Road Transport Corporation some time in the year 1964. The petitioner was appointed its Chairman vide Notification dated 11-12-1967, Annexure 1, reproduced below :—
"GOVERNMENT OF RAJASTHAN
(Home (-I) Department.
Notification
No. F. 12(3)(45) Home/B/67 Dated 11-12-1967
In exercise of the powers conferred by sub-sec. (1) of sec. 5 of the Road Transport Corporation Act, 1950 (Central Act 64 of 1950) read with rules 3(1)(a) and 5(1) of the Rajasthan Road Transport Corporation Rules, 1964, and in supersession of this Department Notification No. F.12(5)(125)HR/Gr/66 dated the September 5, 1966, the State Government hereby appoints Shri Jwala Parsad Ex-Member of the Rajasthan Legislative Assembly as the Chairman of the Rajasthan State Road Transport Corporation, Jaipur vice Shri Shersingh on the following terms from the date Shri Jwala Parsad takes over the charge:–
(1) Honorarium Rs. 1000/- per month
(2) Such free furnished house, telephone, peon and other facilities as admissible to a Dy. Minister of the State Government.
By Order
Sd/- V. D. Sharma
Secretary to the Government."
By another Notification dated 29-3-71 (Annex. 2) the petitioner was again appointed as Chairman for a period of three years with effect from 13-12-1970. Besides the Chairman, the Corporation was constituted by 5 Official Members of whom three were nominated by the State Government and two by Central Government. There were also three non-official members being the representatives of Industry/Agriculture/Labour or commerce who were appointed by the State Government. Thus the Corporation was constituted by nine members in all, including the Chairman as required by R. 3 of the Rajasthan State Road Transport Corporation Rules, 1964, made by the State Government in exercise of the powers conferred by sec. 44 of the Act. They were :
(1) Jwala Prasad (Petitioner) Chairman Official Members nominated by the State Government.
(2) Home Commissioner, Rajasthan.
(3) Finance Commissioner, Rajasthan
(4) General Manager of the Corporation. Official Members nominated by the Central Government.
(5) Dy. Chief Accounts Officer, Western Railway, Bombay.
(6) Marketing Officer, W. Rly., Bombay Non-official Mem
(5) Charanjit Lal vs. Union of India (AIR 1951 SC 41)
(6) Ayodhya Prasad vs. State of U.P. (AIR 1968 SC 1344)
(8) Ram Dial vs. State of Punjab (AIR 1965 SC 1518)
(9) State of Orissa vs. Madan Goyal (AIR 1952 SC 12)
(3) Nazla Bob vs. Commissioner of Wakf
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