Section 37 of The Road Transport Corporations Act, 1950
Power to control a part of the undertaking of a Corporation.
- (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 3[each House of Parliament], as soon as may be, after it is issued.]
Summary
- The government can take over a specific part of the transport business if it is in the public interest.
- This often happens after an inquiry report is received under Section 36.
- An authorized person is put in charge of that specific part of the company.
- The person in charge can give orders to current employees or even hire outside help.
- The costs for this takeover are paid directly from the Corporation's own funds.
- Details of the takeover must be reported to the Houses of Parliament.
Practical examples
FAQ
1. Can the government take over just one part of a bus company under the Road Transport Corporations Act, 1950 Section 37?
Yes, Section 37 of the Road Transport Corporations Act allows the government to authorize a person to take over and administer "such part of the undertaking" as specified in a notification.
2. Who pays for the person the government puts in charge under Section 37 of the Road Transport Corporations Act?
All expenses and the salary of the authorized person are paid from the fund of the Corporation according to Section 37 of the Road Transport Corporations Act.
3. Does Parliament get notified when the government takes control of a part of a transport company under Section 37 of the Road Transport Corporations Act?
Yes, the notification and a report on why it was issued must be laid before each House of Parliament under Section 37 of the Road Transport Corporations Act.
Test yourself
1.Under Section 37 of the Road Transport Corporations Act, 1950, the government can take action based on a report from which other section?
2.What is the priority of payments for takeover expenses under Section 37 of the Road Transport Corporations Act, 1950?
3.Under Section 37 of the Road Transport Corporations Act, 1950, what power does the authorized person have over employees?
4.What must accompany the notification laid before Parliament under Section 37 of the Road Transport Corporations Act, 1950?