3. Establishment of Road Transport Corporations in the States.—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 1
[the whole or any
part of the Union territory of Delhi] under such name as may be specified in the notification.
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.
2
[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-section (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 shareholders.
(5) The term of office of and the manner of filling casual vacancies among the Directors shall be such
as may be prescribed.]
6. Disqualifications for being chosen as, or for being, a 3
[Director of a Corporation].—4
[(1)] A
person shall be disqualified for being chosen as, or for being, a 3
[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.
1. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “the whole or any part of the State” (w.e.f. 3-9-1971).
2. Subs. by Act 63 of 1982, s. 3, for section 5 (w.e.f. 13-11-1982).
3. Subs. by s. 4, ibid., for “member of a Corporation” (w.e.f. 13-11-1982).
4. Section 6 re-numbered as sub-section (1) thereof by Act 28 of 1959, s. 2 (w.e.f. 1-9-1959).
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1
[(2) Nothing in clause (d) of sub-section (1) shall be deemed to disqualify the 2
[Managing Director]
of a Corporation for being chosen as, or for being, a 3
[Director] thereof.]
4
[(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.]
7. Resignation of office by the Chairman or a 5
[Director].—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.
8. Removal of Chairman and members from office.—6
[(1)] The State Government may remove
from office the Chairman or any other 7
[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 the 8
[Board].
9* * * * *
10[(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.]
9. Vacancies amongst members or defect in the constitution not to invalidate acts or
proceedings of a Corporation.—No act or proceeding of a 11[Corporation or its Board] shall be invalid
by reason only of the existence of any vacancy 12[in its Board] or any defect in the constitution thereof.
10. Temporary association of persons with a 13[Board] for particular purposes.—(1) A 13
[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 13
[Board] under sub-section (1) for any purpose shall have a
right to take part in the discussions of the 13
[Board] relevant to that purpose, but shall not have a right to
vote at a meeting of the 13
[Board].
11. Meetings of 14[Board].—(1) A 14
[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 14
[Board] shall meet at least once in every three months.
1. Ins. by Act 28 of 1959, s. 2 (w.e.f. 1-9-1959).
2. Subs. by Act 63 of 1982, s. 4, for “Chief Executive Officer or General Manager” (w.e.f. 13-11-1982).
3. Subs. by s. 4, ibid., for “member” (w.e.f. 13-11-1982).
4. Ins. by s. 4, ibid. (w.e.f. 13-11-1982).
5. Subs. by s. 16 and the Schedule, ibid., for “member” (w.e.f. 13-11-1982).
6. Section 8 re-numbered as sub-section (1) thereof by s. 5, ibid. (w.e.f 13-11-1982)
7. Subs. by s. 5, ibid., for “member” (w.e.f. 13-11-1982).
8. Subs. by s. 5, ibid., for “Corporation” (w.e.f. 13-11-1982).
9. Omitted by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).
10. Ins. by Act 63 of 1982, s. 5 (w.e.f. 13-11-1982).
11. Subs. by s. 16 and the Schedule, ibid., for “Corporation” (w.e.f. 13-11-1982).
12. Subs. by s. 16 and the Schedule, ibid., for “amongst its members” (w.e.f. 13-11-1982).
13. Subs. by s. 16 and the Schedule, ibid., for “Corporation” (w.e.f. 13-11-1982).
14. Subs. by s. 16 and the Schedule, ibid., for “Corporation” (w.e.f. 13-11-1982).
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(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 absence, any other person presiding
shall have a second or casting vote.
12. Power to appoint committees and delegate functions.—3
[(1)] A 4
[Board] may, from time to
time by resolution passed at a meeting—
(a) appoint committees 5
[consisting of Directors] for performing such functions as may be
specified in the resolution;
(b) delegate to any such committee or to the 6
[Chairman, Vice-Chairman, Chief Executive
Officer, the General Manager, the Deputy General Manager or the Chief Accounts Officer of the
Corporation] 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 7
[Managing Director] 8
[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.
9
[(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.]
10[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.]
14. Officers and servants of the Corporation.—11[(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 12[a Secretary and such other officers and employees] as it considers
necessary for the efficient performance of its functions.
1. Subs. by Act 63 of 1982, s. 16 and the Schedule, for “Corporation” (w.e.f. 13-11-1982).
2. Subs. by s. 16 and the Schedule, ibid., for “such member as may be chosen by the members present” (w.e.f. 13-11-1982).
3. Section 12 re-numbered as sub-section (1) thereof by s. 6, ibid. (w.e.f 13-11-1982).
4. Subs. by s. 6, ibid., for “Corporation” (w.e.f. 13-11-1982).
5. Subs. by s. 6, ibid., for “of its members” (w.e.f. 13-11-1982).
6. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “Chairman or Vice-Chairman” (w.e.f. 3-9-1971).
7. Subs. by Act 63 of 1982, s. 6, for “Chief Executive Officer or General Manager” (w.e.f. 13-11-1982).
8. Ins. by Act 28 of 1959, s. 3 (w.e.f. 1-9-1959)
9. Ins. by Act 63 of 1982, s. 6 (w.e.f. 13-11-1982).
10. Subs. by s. 7, ibid., for s. 13 (w.e.f. 13-11-1982).
11. Subs. by s. 8, ibid., for sub-section (1) (w.e.f. 13-11-1982).
12. Subs. by s. 8, ibid., for “such other officers and servants” (w.e.f. 13-11-1982).
8
1
[(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
(b) as respects the other officers and employees, be such, as may, subject to the provisions of
section 34, be determined by regulations made under this Act.]
2
[15. Managing Director, Chief Accounts Officer and Financial Adviser.—(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.]
16. General disqualification of all officers and servants.—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 3
[officer or other
employee] of the Corporation.
17. Appointment of Advisory Council.—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.