The Road Transport Corporations Act, 1950

The Road Transport Corporations Act, 1950 (Act no. 64 of 1950) was enacted with the object to make provisions for incorporation and regulation of Road Transport Corporation. The provisions of the Act is extended to the whole of India, earlier the Act was not covering the State of Jammu and Kashmir and Union territory of Delhi. The Act was extended with the amended provisions to the Union territory of Delhi and Mizoram, in the year 1971 and 1982 respectively. Similarly, the Act was brought into force in the different States by different dates.

The Act under its section 3 deals with establishment of Road Transport Corporation in the States by the concerned State Governments. Such Road Transport Corporation should be corporate body and should have all the features, similar to which the registered company is having. While doing so, the State Governments should consider certain thing including advantages offered to the public, trade and industry by developing Road Transport, desirability of co-ordination among Road transport of several form and also of extending and improving Road transport facility in any area and of providing efficient and economical system of Road transport service. Moreover, the Board of Directors is vested under the provisions of this Act, with the management of such Corporation. The provisions for such Board and appointments of the Chairman and Directors and their service conditions, are added to the Act by the Amending Act of 1982 (Act no. 63 of 1982).

Another important provision in the Act is section 12 where, the Act provides for appointment of Committees by the Board by passing resolutions to that effect at the meetings. On such appointment of committees, the Board can also delegate powers and responsibilities to such Committees or Chairman or Vice-Chairman either on conditions and limitations or otherwise. Further, section 14 deals with appointments of Managing Directors, Chief Account officer and Financial advisor by the State Governments concerned.

Section 18 is dealing with general duty of the Corporation, where the Corporation is required to exercise its powers for providing efficient adequate and economical co-ordinated system of Road Transport services in the concerned State or part thereof. Similarly, the provision of section 19 of the Act deals with powers of the Road Transport Corporation where, operating Road Transport services in the State concerned, providing ancillary service, providing suitable conditions of service, etc. including others which are listed in the section.

Section 20 is important so far as it is concerned with the operation of the Road transport service of the Corporation to the areas within another State after having taken the permission from the Government of that another State. On approval of the extension proposal, the Corporation concerned is required to prepare the scheme and forward it to the Government. And on complying the requirements so given in the section, the Corporation will be entitled to extend the operation of the Road transport service in that other State. Further, section 23 speaks of provisions of the capital for the Corporation by the Central and State Government and even shares in the capital can be held by the other parties. The other subsequent provisions are made in the Act, connected with the budgets, accounts audit, etc. of the Corporation including shares, dividends, funds, borrowing also.

The State Government can issue directions relating to recruitment, conditions of service and training of employees of Corporation their wages, etc. as per section 34 of the Act. Moreover, the State Government is having powers in certain respects.

Another provision being important, so far as the compensation for acquiring the Road transport undertakings under the provisions of this Act. The Corporation is required to pay such compensation amount which is determined under the provision of section 40, wherein it should be fixed as per terms of agreement, if there is an agreement, or where there is no such agreement, then the amount so fixed by the Arbitral Tribunal. Section 44 of the Act empowers the State Government to make rules consistent with the provisions of the Act, on the given matters. Similarly, the Corporation is empowered to make Regulations. Similarly certain special provisions have been provided for the State of Bombay in the Act.

by Faim Khalilkhan Pathan.