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Section 34 of The Road Transport Corporations Act, 1950

Directions by the State Government.

(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.

Summary

The State Government has the power to give general instructions to the Corporation.
These instructions can cover hiring staff, training, and how much to pay employees.
The government can also give orders about how to handle profits and stock.
Before giving these orders, the State Government must talk with the Corporation.
The Corporation is not allowed to ignore these instructions unless it gets special permission.

Practical examples

1The State Government of Bihar decides that the state bus service needs better drivers. They issue a direction under this law telling the bus company to start a new six month safety training course for all new hires.

2After a very profitable year, the Karnataka State Road Transport Corporation wants to spend all its extra money on new office buildings. However, the State Government uses this rule to order them to keep half of those profits in a reserve fund for future bus repairs.

FAQ

1. Can a state bus company ignore government hiring rules under Section 34 of the Road Transport Corporations Act?

No, the company must follow general instructions about recruitment and service conditions unless the State Government gives them specific permission to do otherwise under Section 34 of the Road Transport Corporations Act.

2. Does the government have to consult anyone before giving orders under the Road Transport Corporations Act, 1950 Section 34?

Yes, the State Government is required to have a consultation with the specific Corporation before issuing general instructions under Section 34 of the Road Transport Corporations Act.

3. Can Section 34 of the Road Transport Corporations Act be used to set employee wages?

Yes, Section 34 specifically allows the State Government to issue directions regarding the wages to be paid to employees of the transport company.

Test yourself

1.Under Section 34 of the Road Transport Corporations Act, 1950, what must the State Government do before issuing general instructions?

2.According to Section 34 of the Road Transport Corporations Act, 1950, which of these topics can a government direction cover?

3.If a Corporation wants to depart from a government instruction issued under Section 34 of the Road Transport Corporations Act, 1950, what is required?

4.Under Section 34 of the Road Transport Corporations Act, 1950, directions can be given regarding the "disposal of profits." What does this mean?

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