ROAD TRANSPORT CORPORATIONS ACT, 1950
(1) This Act may be called the Road Transport Corporations Act, 1950."
(2) It extends to the whole of India 1[***] 2[***]:
3[Provided that 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 in force in the Union territory of Delhi:]
4[Provided further that on 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 territory of Mizoram.]
(3) It shall come into force in a State on such date5 as the Central Government may, by notification in the Official Gazette, appoint in this behalf for such State and different dates may be appointed for different States.
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In this Act, unless the context otherwise requires,—"
(a) “ancillary service” means any subsidiary service which provides amenities or facilities to persons making 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;
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The State Government, having regard to—
(a) the advantages offered to the public, trade and industry by the development of road transport;
(b) the desirability of co-ordinating any form of road transport with any other form of transport;
(c) the desirability of extending and improving the facilities for road transport in any area and of providing an efficient and economical system of road transport service therein,
may, by notification in the Official Gazette, establish a Road Transport Corporation for the whole or any part of the State under such name as may be specified in the notification
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.
(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
2[(1)] A person shall be disqualified for being chosen as, or for being, a 1[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
The Chairman or any other 5[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."
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1. Subs. by Act 63 of 1982, sec. 16 and Sch., for “member” (w.e.f. 13-11-1982).
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[(1)] The State Government may remove from office the Chairman or any other 6[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 from more than four consecutive meetings of the 3[Board]:
Provided that no 4[Director appointed] by the Central Government shall be removed from office without the concurrence of that Government.
5[(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 Cent
No act or proceeding of a 1[Corporation or its Board] shall be invalid by reason only of the existence of any vacancy2[in its Board] or any defect in the constitution thereof."
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1. Subs. by Act 63 of 1982, sec. 16 and Sch., for “Corporation” (w.e.f. 13-11-1982).
2. Subs. by Act 63 of 1982, sec. 16 and Sch., for “amongst its members” (w.e.f. 13-11-1982).
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(1) A 1[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 the 1[Board] under sub-section (1) for any purpose shall have a right to take part in the discussions of the 1[Board] relevant to that purpose, but shall not have a right to vote at a meeting of the 1[Board].
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1. Subs. by Act 63 of 1982, sec. 16 and Sch., for “Corporation” (w.e.f. 13-11-1982).
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(1) A 1[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 the 1[Board] shall meet at least once in every three months.
(2) The person to preside at a meeting of a 1[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 a 1[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
[(1)] A 5[Board] may, from time to time, by resolution passed at a meeting—"
(a) appoint committees 3[consisting of Directors] for performing such function 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) authorise the 4[Managing Director] 5[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.
6[(2) The Chairman, Vice-Chairman
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.]
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1. Subs. by Act 63 of 1982, sec. 7, for section 13 (w.e.f. 13-11-1982).
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[(1) Every Corporation shall have a Managing Director, a Chief Accounts Officer and a Financial Adviser, appointed by the State Government\: "
Provided that the same person may be appointed as the Chief Accounts Officer and the Financial Adviser.]
(2) A Corporation may appoint 2[a Secretary and such other officers and employees] as it considers necessary for the efficient performance of its functions.
3[(3) The conditions of appointment and service and the scales of pay of the officers and employees of a Corporation shall—
(a) as respects the Managing Director, the Chief Accounts Officer and the Financial Adviser, or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser, be such, as may be prescribed, and
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(1) The Managing Director shall be the executive head of the Corporation and all other officers and employees of the Corporation shall be subordinate to him."
(2) The Managing Director shall obtain the views of the Chief Accounts Officer and the Financial Adviser or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser, on every proposal involving revenues, or expenditure from the fund, of the Corporation and shall cause such views to be placed before the Board prior to the consideration of such proposal by the Board.]
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1. Subs. by Act 63 of 1982, sec. 9, for section 15 (w.e.f. 13-11-1982).
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No person who has directly or indirectly, by himself or his partner or agent, any share or interest in any contract, by or on behalf of a Corporation, or in any other road transport undertaking shall become or remain an 1[officer or other employee] of the Corporation.
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1. Subs. by Act 63 of 1982, sec. 16 and Sch., for “officer or servant” (w.e.f. 13-11-1982).
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The State Government may, after ascertaining the views of the Corporation, by notification in the Official Gazette, constitute one or more Advisory Councils consisting of such number of persons, on such terms, and for the purpose of advising the Corporation on such matters, as may be specified in that notification.
(1)Where a Corporation (hereafter in this section referred to as the parent Corporation) is satisfied that it is expedient or necessary so to do for the more efficient discharge of its functions under this Act, it may, with the concurrence of the State Government and the Central Government, frame by notification in the Official Gazette a scheme or schemes providing for the establishment of one or more subsidiary corporations. "
(2) A scheme framed under sub-section (1) shall specify the subsidiary corporation or corporations which shall become established thereunder, the date or dates with effect from which they shall be so established, the powers and functions of the parent Corporation which such subsidiary corporation or corporations may exercise and discharge, the conditions and limitations subject to which such powers may be exercised, the management of the affairs of each s
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 State or part of the State 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.
(1) Subject to the provisions of this Act, a Corporation shall have power—"
(a) to operate road transport services in the State 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;
1[(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.]
(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 serv
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 the Central Government in consultation with the State Government.
It shall be the general principle of a Corporation that in carrying on its undertaking it shall act on business principles.
(1) The Central Government and the State Government, may provide to a Corporation established by the State Government, in such proportion as may be agreed to by both the Governments, any capital that may be required by the Corporation for the purpose of carrying on the undertaking or for purposes connected therewith on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government may, with the previous approval of the Central Government, determine.
1[(2) The Corporation may, whether or not any capital is provided to it under sub-section (1), raise by the issue of shares such capital (hereafter in this section referred to as the “authorised share capital”) as may be authorised in this behalf by the State Government:
Provided that where any capital is provided to the Corporation under sub-section (1
If, after the issue of shares under section 23 a Corporation requires any further capital, the Corporation may, with the previous sanction of the State Government, raise such additional capital by the issue of new shares and the provisions of sub-sections (2), 2[(2A)], (3), (4), (5) and (6) of the said section shall apply to the issue of such shares."
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1. Ins. by Act 63 of 1982, sec. 16 and Sch., (w.e.f. 13-11-1982).
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The shares of a Corporation shall be guaranteed by the State Government as to the payment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the State Government by notification published in the Official Gazette at the time of issuing the shares.
A Corporation may, with the previous approval of the State Government, borrow money for the purpose of raising its working capital or meeting any expenditure of a capital nature in the open market or from a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), a State Finance Corporation, established under section 3 of the State Financial Corporations Act, 1951 (63 of 1951), the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948), the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964), the Life Insurance Corporation of India, established under section 3 of the Life Insurance Cor
(1) Every Corporation shall have its own fund and all receipts of the Corporation shall be carried thereto and all payments by the Corporation shall be made therefrom.
(2) Except as otherwise directed by the State Government, all moneys belonging to that fund shall be deposited in the Reserve Bank of India or with the agents of the Reserve Bank of India 1[or with the corresponding new banks constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980),] or invested in such securities as may be approved by the State Government.
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1. Ins. by Act 63 of 1982
(1) Where 2[the whole or part of the capital of a Corporation] is provided by the Central Government and the State Government under sub-section (1) of section 23, the Corporation shall pay interest on such capital at such rate as may, from time to time, be fixed by the State Government in consultation with the Central Government and such interest shall be deemed to be a part of the expenditure of the Corporation."
(2) Where the Corporation 2[raises the whole or any part of its Capital] by issue of shares, it shall pay dividend on such shares at such rate as may, from time to time, be fixed by the Corporation, subject to any general limitations which may have been imposed by the State Government in consultation with the Central Government, and such dividend shall be deemed to be a part of the expenditure of the Corporation.
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(1) A Corporation shall make such provisions for depreciation and for reserve and other funds as the State Government may, from time to time, direct."
(2) The management of the said funds, the sums to be carried from time to time to the credit thereof and the application of the moneys comprised therein shall be determined by the Corporation:
Provided that no fund shall be utilised for any purpose other than that for which it was created without the previous approval of the State Government.
After making provision for payment of interest and dividend under section 28 and for depreciation, reserve and other funds under section 29, a Corporation may utilise such percentage of its net annual profits as may be specified in this behalf by the State Government for the provision of amenities to the passengers using the road transport services, welfare of labour employed by the Corporation and for such other purposes as may be prescribed with the previous approval of the Central Government, 1[and out of the balance such amount as may, with the previous approval of the State Government and the Central Government, be specified in this behalf by the Corporation, may be utilised for financing the expansion programmes of the Corporation and the remainder, if any, shall be made over to the State Government for the purpose of road development].
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A Corporation shall have power to spend such sums as it thinks fit on objects authorised under this Act and such sums shall be treated as expenditure payable out of the fund of the Corporation.
(1) Every Corporation shall, by such date in each year as may be prescribed, prepare and submit to the State Government for approval a budget for the next financial year showing the estimated receipts and expenditure during that financial year in such form as may be prescribed."
(2) Subject to the provisions of sub-sections (3) and (4), no sum shall be expended by or on behalf of a Corporation unless the expenditure of the same is covered by a current budget grant approved by the State Government.
(3) 1[Subject to such conditions and restrictions as may be specified in this behalf by the State Government, a Corporation may sanction] any re-appropriation within the grant from one head of the expenditure to another or from a provision made for one scheme to that in respect of another, subject to the condition that the aggregate budget gra
(1) The Corporation shall maintain proper accounts and other records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India."
(2) The accounts of a Corporation shall be audited annually by the Comptroller and Auditor-General of India or his nominee and any expenditure incurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of a Corporation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of Indi
(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) 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 Central and the State Governments 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.
1[(3) The State Government shall cause the annual report referred to in sub-section (2) to be laid before the Legislature of the State.]
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(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 purpose of the inquiries.
(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 2[officers or other employees] of the Corporation and employ any outside agency."
(2) The State Gove
(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, with the previous approval of the Central Government, 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 explanations and objections, if any, of the Corporation.
(2) Upon the publication of a notification under sub-section (1) superseding 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 Central and the 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.
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 High Court exercising jurisdiction in relation to the State concerned;
(c) an appeal shall lie to the High Court against the decision of the tribunal and the o
[Rep. by the Road Transport Corporations (Amendment) Act, 1959 (28 of 1959), sec. 11 (w.e.f. 1-9-1959).]
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 1[officer or other employee] of the Corporation generally or specially empowered by the Corporation may, with the previous permission of 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 or 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.
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All 2[Directors] of a Corporation and all 3[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)."
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1. Subs. by Act 63 of 1982, sec. 16 and Sch., for “members” (w.e.f. 13-11-1982).
2. Subs. by Act 63 of 1982, sec. 16 and Sch., for “officers and servants” (w.e.f. 13-11-1982).
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(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:—
1[(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;]
2[(b) remuneration, allowances or fees paid to the Directors of the Corporation or other persons associated with the Board under section 10;]
(c)
(1) A Corporation may, with the previous sanction of 1[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 2[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 of
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.]"
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1. Section 45A inserted by Act 4 of 2005, sec. 2 and Sch. (w.e.f. 11-1-2005).
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The State Government may, by rule, provide that the breach of any rules made by it under section 44 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.
(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 reorganised 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, r
(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, sha
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 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.]
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1. Section 48 rep. by Act 36 of 1957, sec. 2 and Sch. I (w.e.f. 17-9-1957) and again ins. by Act 11 of 1960, sec. 71 (w.e.f. 25-4-1960).
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