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THE ROAD TRANSPORT CORPORATIONS ACT, 1950

Title : THE ROAD TRANSPORT CORPORATIONS ACT, 1950

Year : 1950



(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 (i) 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. Inserted by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 10 (1-9-1959).

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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 purposes 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 1*[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.

2*[(3) Every notification issued under this section together with a report on the circumstances leading to its issue shall be laid before the Legislature of the State, as soon as may be, after it is issued.]

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

2. Inserted by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 8 (1-9-1959).

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(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 explanation and objections, if any, of the Corporation.

(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 super session, vacate their offices as such a 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 super session, 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 super session, vest in the Stale Government.

(3) On the expiration of the period of super session specified in the notification issued under sub¬section (1), the State Government may-

(a) Extend the period of super session for such further term as it may consider necessary; or

(b) Reconstitute the Corporation in the manner provided in section 5.

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1. Substituted for the words "members" by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1482), section 16 and the Schedule. (15-11-1982).

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(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 order of the High Court on such appeal shall be final.



(Omitted by the Road Transport Corporations (Amendment) Act, 1959 (28 of 1959), section 11 (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 reason-able 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.

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

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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.

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1. Substituted for the word "members".

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

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(1) The State Government may, by notification in the Official Gazette, make rules a to give effect to the provisions of this Act.

(2) In particular, and without prejudice 10 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) The term of office of, the manner of filling casual vacancies among 13*[Directors] of the Corporation;

(d) The number of 3*[Directors] necessary to constitute a quorum at a meeting of the 4*[Board];

(e) The conditions of appointment and service and the scales of pay of the 5*[Managing Director, the Chief Accounts Officer, the Financial Adviser or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser];

(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;

6*[(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;

7*[(j) The form in which the annual statement of accounts shall be prepared;]

8[* * * * * *]

(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;

(n) Any other matter which has to be, or may be, prescribed.

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1. Substituted 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 Schedule. (15-11-1982).

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

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

5. Substituted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and the Schedule. (15-11-1982), for the words "Chief Executive Officer or General Manager and the Chief Accounts Officer."

6. Inserted by the Road Transport Corporations (Amdt.) Act, 1982 (63 of 1982), section 16 and the Schedule. (15-11-1982).

7. Substituted by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 12(1-9-1959).

8. Omitted by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 12(1-9-1959).

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(1) A Corporation may with the previous sanction of the State Government,make regulations, not inconsistent with this Act and the rules made there under, 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 1*[Board] under section 10;

(b) The time and place of meetings of a the 1*[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 2*[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];

3*[(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.]

45A -4* 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

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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 for the words "Servants of the Corporation other than the Chief Executive Officer or General Manger and the Chief Accounts Officer" by the Road Transport Corporations (Amdt.) Act, 1959 (28 of 1959), section 12(1-9-1959).

3. Inserted by the Road Transport Corporations (Amdt.) Act, 1959 (10 of 1959), section 13 (1-9-1959).

4. Inserted vide the Delegated Legislations Provisions Amdt Act, 2004

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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) The body known as the Bombay State Road Transport Corporation 1* 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

(b) No suit, prosecution or other legal proceeding shall lie against the Government of Bombay or any member of the Board or any other 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 arid shall have effect accordingly.

47A - 2* Special provision for reconstitution or dissolution of certain Corporations

(1) Where an account of the reorganisation of States under the States Reorganisation Act, 1956, 3*[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, 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",-

4*[(i) In relation to the Bombay State Road Transport Corporation, shall mean the Government of the State of Maharshtra or of Gujarat as formed under the Bombay Reorganisation Act, 1950]; and

(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 State Reorganisation Act, 1956;

5*[(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.]

(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.

(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 pro visions of section 111 of the States Reorganisation Act 1956, 3 [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.

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1. This Corporation has been split up into Maharashtra State Road Transport Corporation and Gujarat State Road Transport Corporation, part of it also having gone to the newly created Mysore State. Provincial Transport Services, Nagpur and Marathwada State Transport have amalgamated with the Maharashtra State Road Transport Corporation.

2. Inserted by the Road Transport Corporations (Amdt.) Act, 1956 (87 of 1956), S. 2 (28-12-1956).

3. Substituted for the words and figures "the whole or any part of a State in respect of which a Corporation was, immediately before the 1st day of November, 1956" by the Bombay Reorganisation Act, 1960(11 of 1960), S. 71 (25-4-1960).

4. Inserted by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), S. 72 (30-12-1971).

5. Inserted by the Bombay Reorganisation Act, 1960(11 of 1960), S. 71 (25-4-60).

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Notwithstanding anything contained in section 47-A 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.

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1. Inserted by the Bombay Reorganisation Act, 1960 (11 of 1960), Section. 71 (25-4-1960), The original section 48 was omitted by the Repealing and Amending Act, 1957 (36 of 1957), Section. 2 and Schedule. I (17-9-1957).

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(1) No court shall proceed to the trial of any offence made punishable by or under this Act except on the complaint of, or on an information received from, the General Manager of the new Corporation or a person authorised by him by general or special order in this behalf in writing.

(2) All offences against this Act or any rule or regulation made there under, or any bye-law continued there under, whether committed within or without the limits of the Union territory of Delhi, shall be cognisable by a Magistrate.



(1) The State Government may appoint one or more magistrates of the first or second class for the trial of offences against this Act or any rule or regulation made there under or any bye-law continued there under and may prescribe the time and place at which such magistrate or magistrates shall sit for the despatch of business.

(2) Such magistrates and the members of their staff shall be paid such salary, pension, leave and other allowances as may, from time to time, be fixed by the State Government.

(3) The new Corporation shall out of its fund, pay to the State Government the amounts of the salary, pension, leave and other allowances as fixed under sub-section (2) together with all other incidental charges in connection with the establishments of the said magistrates.

(4) Such Magistrates shall have jurisdiction over the whole of the Union territory of Delhi.

(5) For the purposes of the Code of Criminal Procedure, 1898, all magistrates appointed under this section shall be deemed to be magistrates appointed under section 12 of that Code.



(1) The General Manager of the new Corporation or any officer or other employee specially empowered by him in this behalf in writing may, either before or after the institution of the proceedings compound any offence made punishable by, or under this Act.

(2) Where an offence has been compounded, the offender, if in custody, shall be discharged and no proceedings shall be taken against him in respect of the offence so compounded.



No person shall be liable to punishment for any offence against this Act or any rule or regulation made there under, unless complaint of such offence is made before a Magistrate within six months next after,-

(a) The date of commission of such offence, or

(b) The date on which the commission or existence of such offence was first brought to the notice of the complainant.



If any person summoned to appear before a magistrate to answer a charge of an offence against this Act or any rule or regulation made there under, or any bye-law continued there under, fails to appear at the time and place mentioned in the summons, or on any date to which the hearing of the case is adjourned, the magistrate may hear and determine the case in his absence, if-

(a) Service of the summons on such person is proved to his satisfaction, and

(b) No sufficient cause is shown for the non-appearance of such person."-See Act 71 of 1971, Section. 7 (a) and Schedule I (3-11-1971).
Last updated on September, 2016

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