MISCELLANEOUSCentral

Section 47A of The Road Transport Corporations Act, 1950

Special provision for reconstitution or dissolution of certain Corporations.

1[47A. Special provision for reconstitution or dissolution of certain Corporations.--(1) Where on account of the reorganisation of States under the States Reorganisation Act, 1956 (37 of 1956), 2[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 re-organised 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",-- 3[(i) in relation to the Bombay State Road Transport Corporation, shall mean the Government of the State of Maharashtra or of Gujarat as formed under the Bombay Reorganisation Act, 1960 (11 of 1960);

(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 States Reorganisation Act, 1956 (37 of 1956);] 4[(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 (81 of 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:--
1. (a)the dissolution of the Corporation, notwithstanding anything contained in section 39;
2. (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;
3. (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;
4. (d)the extension of the area for which the Corporation is established, or the exclusion of any area therefrom;
5. (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;
6. (f)the transfer or re-employment of any workmen of the Corporation to, or by, any such transferee, and, subject to the provisions of section 111 of the States Reorganisation Act, 1956 (37 of 1956), 5[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;
7. (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.]

Summary

This provision allows a State Government to change or dissolve a transport body when state borders are redrawn.
The State Government must create a plan or scheme that explains how to split or merge the existing transport corporation.
These plans can include creating new corporations, joining two together, or moving workers and assets to a different state body.
Every plan for changing a corporation must be sent to the Central Government for final approval.
The Central Government can issue orders that override other parts of this law to make the plan work.
These orders can also decide how workers are transferred or rehired while protecting their service conditions.

Practical examples

1In 1956, when parts of a state are moved to a neighbor, the local government writes a plan to divide the bus fleet and depot buildings between the two regions.

2After a border change, the State of Maharashtra proposes a scheme to move 500 bus drivers to the Gujarat transport body while keeping their current pay and benefits.

FAQ

1. What happens to workers if a corporation is split under Section 47A of The Road Transport Corporations Act, 1950?

Under Section 47A of The Road Transport Corporations Act, 1950, the plan can specify that workers are transferred to or rehired by the new transport body under set terms.

2. Can a corporation be closed down if state borders change under the Road Transport Corporations Act?

Yes, Section 47A of the Road Transport Corporations Act allows for the dissolution, meaning the total closing down, of a corporation as part of a reorganization scheme.

3. Who has the final say on a reorganization plan under Section 47A of the Road Transport law?

The Central Government must approve the scheme and can modify it before making a final order under Section 47A of the Road Transport law.

Test yourself

1.Under Section 47A of The Road Transport Corporations Act, 1950, what is required before a state reorganization scheme can take effect?

2.Which of these can be included in a scheme under Section 47A of The Road Transport Corporations Act, 1950?

3.When a scheme under Section 47A of the Road Transport law transfers assets, who becomes the legal owner?

4.Under Section 47A of The Road Transport Corporations Act, 1950, what happens if this Section conflicts with Section 39?

47PreviousSection 47 Special provisions relating to Bombay.48NextSection 48 Transitional provision relating to Bombay State Road Transport Corporation.

←Section 47 Section 48→