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Kerala act 021 of 1985 : The Kerala Motor Transport Workers' Welfare Fund Act, 1985 (Act 21 of 1985)

135

THE

KERALA

MOTOR TRANSPORT WORKERS'

WELFARE FUND

ACT,

1985

(Act 21of

1985)

CONTENTS

Preamble Sectwns

1.

Short

title,

extent and commencement.

2.

Definitions.

3.

Motor

Transport

Workers'

Welfare Fund.

4.

Contributions to the

Fund.

5. Modification of scheme.

6. Constitution of Board.

7.

Appointment

of

Officers.

8. Determination of amount due from

employers.

9.

Provisional assessment

of contribution.

10. Mode of

recovery of moneys due

from

employees.

11. Protection

against

attachment.

12.

Priority

of

payment

of contributions over other

debts.

13.

Employer notto reduce wages

etc.

14.

Directors

of

Board

etc.,

to be

public

servants.

15.

Penalties.

16.

Enhanced

punishment

for

default

in

payment

of

employees' contributions

already

deducted. )7. Enhanced

punishment

for second

or

subsequent

offence.

18.

Offences

by companies.

19. Directions

by

Government.

20. Power to order

inquiry.

21 . Power to

supersede

the Board. 22 Protection of action taken in

good

faith. ' 23. Bar

of

jurisdiction of

civil courts. 24.

Special provisions for

transfer

and

vesting

of

welfare fund established

by

customor

agreement. 25. Power to make

rules. 26.

Repeal

and

Saving. Schedule.

.

136

THE KERALA MOTOR

TRANSPORT WORKERS

WELFARE FUND

ACT,

1985' (Act 21of

1985)

An Act to

provide for

the constitution

of

a Fund to

promote

the welfare of

motor

transport

workers inthe

State of

Kerala. Preamble.——WHEREAS it is

expedient

to

provide for the constitution ofa.Fundto

promote

the

welfareofmotor

transport workers in the State of

Kerala; BE it enacted in

the

Thirty-sixth

Year of

the

Republic

of India as follows:—

1. Short

title,

extentand

mmencement—(l)

This Act may be called

the

Kerala Motor

Transport

Workers' Welfare Fund

Act,

1985.

(2) Itextends tothe

whole ofthe

State of

Kerala.

(3) It

shallbedeemedtohavecomeintoforceon the 27th day of

June,

1985.

2.

Definitions.—In

this

Act,

unlessthecontext

otherwise requires,— (a)

"Board" meanstheKerala Motor

Transport

Workers' Welfare FundBoard

constituted under

section

6:

(b)

"Chief

Executive Oflicer" meanstheChief Executive Officer

appointed

under sub-section

(1) ofsection

7; (c)"contribution

"

means a contribution

payable

in

respect of a member under the

scheme;

((1)

"employee"

means a

personwhois

employed forwagesin a motor

transport undertaking directly or

through

an

agency

to work in a

professmnal capaclty

on a

transport

vehicle or to attend to

duties

in connection with the

arrival, departure, loading

or unload- ing ofsuch

transport

vehicle and

includes a

driver,

conductor, cleaner,

station

staff, line

checking

staff,

booking

clerk, cash

clerk, depot clerk, time

keeper,

watchmanorattendant. (e)

"employer"

means,inrelationto

any

motor

transport undertaking, thepersonwho, orthe

authority

which, has the

ultimate control overtheaffairs of themotor

transport undertaking, and '

Received the assent of the

President on the 12th

day

of

August,

1985

and

PublishedintheKarate.

Gazette,

Extraordinary

No. 681

dated 16th August

1985.

1'37 where thesaid

affairs are

entrusted to

any other

person, whether called a

manager, managing

director,

managing

agent

or

by

any other name, such other person; (f)

"Fund" meanstheKerala Motor

Transport

Workers' Welfare Fund

established under the

scheme; (g)

"member" means amember oftheFund and

ineludes any person eligible tobecomea

member of the

Fund; (h)

"motor

transport

undertaking"

means a

motor

transport undertaking engaged in

carrying passengers or

goods orboth

by road for hire or

reward and

includes a

private

carrier; (i)

"prescribed"

means

prescribed by

rulesmadeunderthis Act;

(j)

"scheme" means the

scheme framed underthis Act; (k)

"wages"

meansallemoluments

which are

earned

by an employee

while on duty or onleavewithwages inaccordancewith the termsof

the contract of

employment

and which are

paid or payable incashto him, but does notinclude—

(i) thecash

value ofanyfood

concession; (ii)

overtime

allowance,

bonus and

commission;

(1) allother wordsand

expressions usedbut not

defined in this Actand defined in

the

Motor

Vehicles

Act,

1939

(Central

Act 4 of

1939),

shall have the

meanings

respectively

assigned

to them

in that Act.

3. Motor

Transport

Workers'

Welfare

Fund.—(

1) The Government may, by

notification in the

Gazette,

frame a scheme to be called the

Kerala

Motor

Transport

Workers'

Welfare

Fund Scheme for

the establishment ofaFund under

this Actfor

employees and there shall

be

established, as

soon as

may be after the

framing of the

scheme,

a Fund in accordance with

the

provisions

of this Act andthescheme.

(2) TheFundshallvest

in, andbe

administered

by, theBoard.

.

(3)

Subject

to the

provisions

of this

Act,

the scheme may pro- 'v1de forallor

anyofthe

matters

spec1fied 1n theSchedule.

4. Contnbutions tothe

Fund—(1)

The contribution which shall be

paid by

the

employer to

the Fund shall be

eight per centof the wagesfor

the time

being payable toeachof

the

employees

and employees'

contribution

shallbe

equal tothecontribution

payable by the

employer in

respect of him:

25I686IMC

138

Provided

that

nothing

in this sub-section

shall

apply

to a motor transport undertaking towhich the

provisions ofthe

Employees' Provident Funds

and

Miscellaneous Provisions

Act,

1952

(Central Act 19 of

1952),

apply.

(2) The

employer

shall, in

addition to the

contribution payable

under sub-section (1),

contribute to the Fundas

gratuity an

amount

equal

to five per

cent of

the wages for the time

being payable toeachof the

employees:

Provided that

nothing

in this sub-section shall

apply

to a motor transport undertaking towhich the

provisions ofthe

Payment of Gratuity Act, 1972

(Central Act 39 of

1972),

apply.

(3)

Wheretheamountofany contribution

payable

under this Act

involves a

fraction

of a

rupee, such fraction shall be rounded off to the nearest

rupee, half ofa

rupee

or

quarter

of a

rupee.

5.

Modificatwn of

Schema—(1)

The Government may, by notification in the

Gazette,

add

to,

amend or

vary the

scheme either prospectively or

retrospectively.

(2)

Every

notification under sub-section

(1)

shallbe

laid, as soon as

may be after

it is

issued,

before the

Legislative Assembly while itisin

session

foratotal

period offourteen

days

which may be

comprised

inone

session orintwo successive

sessions,

and

if, before the

expiry ofthe

session inwhichitisso laid or the

session immediately

following, the

Legislative

Assembly

makesanymodi- fication in

the notification or

decides that the notification

should not be

issued, thenotification shall thereafterhaveefiect

only insuch modified formorbeofno

effect, asthecase

may be;

so however that any such modification or annulment shall be without

prejudice to the

validity

of

anything previously

done under that notification.

6. Constitution

of

Board—(1)

The

Government may, by notification in the

Gazette,

constitute with effect from such date as

may be

specified

in such notification a Board to

be

called the Kerala Motor

Transport

Workers' Welfare Fund Board for the administration of the Fund andto

supervise or

carry outtheactivities financed from

the

Fund. .

(2) TheBoard shall.bea

body

corporate

by thename aforesaid,

having perpetual

successionand acommon sealandshall by thesaidnamesueandbesued.

(3) TheBoard shall consist ofsuchnumber ofDirectorsas may be

appointed

by

the Government and

they

shall be chosen in such manner as

maybe

provided

forinthe scheme:

139

Provided that the

Board

shall include an

equal

numberof Directors

representing

the

Government,

the

employers

and the employees. , \

(4) One of theDirectors of the

Board shallbe

appointed

by the

Government to be

its

Chairman.

(5) The

Government shall

publish thenamesof all the Directors of the Board

in the Gazette.

(6) TheBoard shall

administertheFundin suchmanner as may be

specified

in the scheme.

(7) TheBoard

may,withthe

previous approval of theGovern~ ment,

delegate toIts

Chairmanorto theChief

Executive Officeror to

any officer

appointed

under sub-section

(1)

of section 7 such of its powers and

functions

under this Actor theschemeasitmay consider necessary forthe efficient administration

of the

Fund,

subject to such restrictions and

conditions, if

any,

as it

may

spec1fy:

Provided thatno

delegation

shallbemade

under this sub-section unless all

the members

present support

such

delegation.

7 .

Appomtment

of Ofiicers.—(1)

The Government

may appoint a Chief Executive

Officer

and

such number of

other officers and staff as

they

consider necessary

to assist the

Board in

the

discharge

of its functions

and duties under this Act. (2) TheChief Executive Officer andtheother officers appointed

under sub-section (1)

shall exercisesuchpow3rsand discharge suchdutiesas maybe

prescribed. (3) Themethodof

recruitment,

salary and

allowances, dis- cipline andother conditions of

serviceofthe

Chief Executive Officer and

the other officers and

staff

appomted

under sub-section

(1)

shall be such as

may be

prescribed. Wanggfijg'm 8.

Determination

of

amount due

from

employers.-—(1)The 'Chief

Executive Officeror

any

other officer

appointed

under sub-sec— tion

(1) of

Section7authorised

by

himinthis

behalf

may,

by

order, determine the

amount due

from any

employer

under the

provisions of

this Act

or of

the

scheme and for

this purpose, may conduct such lanlI'y ashe may deem

necessary. (2)

Any

oflicer

conducting the

inquiry

under sub-section

(1) shall for

the purposes of such

inquiry,

have the same

powers

as are

140

vested in a

civil court while

trying

a

suit under the Code of Civil

1

Procedure, 1908

(Central Act 5of

1908), in

respect ofthe

following matters,

namely:— (a)

enforcing theattendanceof

any

lessonand

examining him on

oath; '

(b)

requiring the

discovery and

production of

documents; (c)

receiving

eVidenceon

aflidaVit; (d)

issuing

commissionsforthe

examinationofwitnesses.

(3)

Any

inquiry

under this

section shallbedeemed tobea JudlClal proceeding

within themeaningofsections193and228 of the Indian Penal Code

(Central

Act 45 of

1860)

and for

the purposes of

section

196

of that code.

(4) Noorder

determining the

amount due fromany

employer shall be made under sub-section

(1)

unless the

employer hasbeen given a

reasonable

opportunity of

being

heard.

(5)

Any

person

aggrieved by an

order under

sub-section

(1)

may, Within

sixty

days

from the date of

receipt

of

the

order,

prefer an

appeal

to the

Government or

any other

authority as

may be speCified by theGovernment in this

behalfandthedecision ofthe Government orof

such

authority on

such

appeal

shall be final.

9. Provisional assessment

of

contribution—(1)

Every employer shall,

pending

determination under section8 oftheamount due from

him, pay every month

by way of advance contribution an amount

equivalent

to

one-twelfth

of the amount

payable

annually in

respect

of

his

motor

transport

undertaking, according

to the latest determination under the

said section or, iftheamount due from him has not been

previously

determined under the

said

section, an amount

equivalent

to one-twelfth of the amount

which,

according to

the

assessment of the

employer

is

payable

by

him

annually

in respect ofhismotor

transport undertaking.

(2) The

advance contributionforamonth

shall

become payable onorbefore the 5th day ofthe

succeeding

month.,

(3)

Where theadvance contribution isnot

paid on or

before the due

date, any officer

appomted

under sub-section

(1)

of sec- tion 7

authorised

by

the Chief Executive Officer

in this behalf

shall issue a

notice tothedefaulter

showing theamountofarrears,and if the amount is

not

paid

within seven

days

of

the

receipt

of such notice, itmaybe

recoveredin thesame

manner as

arrearsof

public revenue

due onland.

.

I

'34

14-1

(4) Theamount

paid

under this section for an

year shall be adjusted against theamount

determined

under

section8forthat year.

10. Mode

of recovery of moneys

due

from employera—Any amount due from

the

employer

in

pursuance of the

prowsions

of this. Act or the

scheme,

otherthananamount

payable

undersub- section

(1)

of section

9, may, if the

amount is

in arrear, he recovered together With

interest thereonattherateof ninepercent

per annum in

the same manner as an

arrear of

public

revenue due on land.

11.

Protection

agamst

attachment—(1)

The amount

standing to

the credit of any member in the Fund shall not in

any way be capable of

being assigned or

charged and

shallnotbeliableto attachment under any decree

or

order of any

court in

respect

of any debt or

liability

incurred

by

the

member.

and no receiver

appointed under the

Insolvency

Act,

1955

(II

of

1956),

shall be entitled to or have any claim on

any such amount.

(2)

Any

amount

standing to-thecreditofamember inthe Fund at the time

of his death and

payable

to his nominee under the scheme

shall,

subject

to

any deduction

authorised

by

the scheme, vestinthenomineeandshallbefreefromanydebtor other

liability

incurred

by

the deceased or the nominee before the death of themember.

12.

Priority

of

payment of

contributions over-other

debts.— Where any employer

is

adjudicated

insolvent or

the

employer

is

a company andanorder

for

winding up of such

company is

made,

the amount

due from

the

employer

under

this Act

or

the scheme

shall, where the

liability

therefore has accrued

before

the order for

adjudi— cation or

winding

up is

made, be

deemed to be included among the debts

which under section 64ofthe

Insolvency

Act, 1955

(II of 1956), orunder section530ofthe

Companies

Act, 1956

(Central Act 1of

1956), areto

be

paid

in

priority

to all other debts in the distribution of the

property

of

the insolvent or

the assets of

the company being

wound up, asthecase

may be.

13.

Employer nottoreduce wages eta-No

employer

shall

by reason

only

of

his

liability

for the

payment

of any contribution to the

Fund reduce

whether

directly or

indirectly,

the wages of any employee towhomthe

scheme

applies or thetotal

quantum of benefits towhich the

employee is

entitled

under thetermsofhis employment

express or

implied.

14. Directors

of

Board

etc.,

to

be

public servants—Every Director ofthe

Board,

the Chief Executive Officer and every officer appointed

under sub-section (i) ofsection7shallbedeemedtobea public

servant withinthe

meaning ofsection21of theIndian Penal Code

(Central Act45of

1860).

142

15.

Penalties—(1)

Whoever, forthe

purpose of

avoiding

any payment tobe made

by himunderthis Actor

under the scheme or of

enabling any other person

to

avoid any

payment

to be made

under

this Act or the

scheme,

knowingly

makes orcausesto be made any false statement or

false

representation,

shall

be

puni-' shable with

imprisonment fora term. which may extend tosix months, orwith finewhich may extendtoonethousand rupees, or

with

both.

(2)

Whoever contravenesor

makes

defaultin

complying with any ofthe

provisions ofthisActorofthe

scheme

shall, ifnoother penalty iselsewhere

provided

by orunder this Act forsuchcontra- vention or

non-compliance, be

punishable with

imprisonment

for a term which may extend to three

months,

or with fine which may extend to

five

hundred rupees,

or

with both.

(8) Nocourt inferiortothatof8.

Judicial

Magistrate ofthe First Class shall

try

any offence

punishable

under thisAct.

(4) Nocourt shalltake

cognisance ofany offence

punishable under

this

Act

except ona

report

in

writing

of

the

facts

constituting such offence made with

the

previous

sanction of the Chief Executive Oflicer. I

16.

Enhanced

punishment

for default in

payment of employees' contributions

already

deducted.—(1)'

Whoever makes

default inthe payment ofthe

employees'

share ofthecontributionto the Fund after having

deducteditfromthewagesofthe

employees in accordance withthe

provisions ofthisAct or the

scheme,

shall be punishable With

imprisonment foratermwhichmayextend to one year, but which shall not be

less

than

three

months,

and with

fine which

may

extend to four thousand

rupees:

Provided thatthe

court

may,forany adequate

and

special reasons to he mentioned in the

judgment, impose a

sentence of imprisonment fora.termoflessthanthree months.

(2

Notwithstanding anything

contained in

the Code of Cn'mir. :1

Procedure, 1973

(Central Act2of

1974),

an offence

under sub-section

(1)

shallbe

cognizable.

17. Enhanced

punishment for

second or

subsequent 01727106.— Whoever,

having beenconvicted

by acourtofanoffence

punishable under

this

Act,

again

commits the same

ofience

shall be

punishable for every such

subsequent

offence with

imprisonment

for a term which may extend to one

year, but which

shallnotbeless

than

three months, andwith line

which

may

extendtofourthousand rupees:

J

14-3 Provided that the

court

may, for

any adequate

and

special reasons tobementioned in the

judgment,

impose a

sentenceof imprisonment foratermof less thanthree

months.

18.

Offences by

companies.—(1)

Where

an

offence

underthis Act

has

been

committed

by

a

company, every person

who at the

time the

offence

was

committed was

in

chargelof,

and was

responsible to, thecompanyforthe

conduct of thebusiness of the

company as well as the

company, shall

be

deemed to be

guilty

of

the

offence and shall

be

liable to be

proceeded against

and

punished

accordingly:

Provxded that

nothing

contained in

this

sub-section shall render any such person liableto

any punishment,

if

he proves thatthe offence was committed

without his

knowledge or

that he

had exercised alldue

diligence

to

prevent thecommission of such offence.

(2)

Notwithstanding anything

contained insub-section

(1),

where any offence under

this Acthasbeen

committed

by a

company and it

is

proved

that the offence has been committed with the

consent or connivance

of,

or

is attributable

to, any neglect

on

the

part

of any director, manager,

secretary or

other

officer of

the company, such

director, manager, secretary

or other

officer shall

be deemed

to be

guilty

of

that

offence and

shall be liable to

be

proceeded against and

punished

accordingly. Explamtion.—For thepurposesofthis

section,— (a)

"company"

means

any body corporate and

includesa firm or other association of

individuals;

and (b)

"director" in

relationto afirmmeansa

partner in the firm.

19. Directions

by

Government—(1) TheGovernment may, after consultation with

the

Board, give

to the Board

general

instructions to be followed

by

the

Board.

(2) Inthe

exercise of' itspowersand

performance ofits duties under

this

Act,

the Board shall not

depart

from any general instructions issued

under

sub-section

(1),

except

with the previous permission of theGovernment. . '20. Power to order

inquiry—(1) The

Government may,

at any time,

appoint

any

person to

inquire into the

working oftheBoard and to submit a

report to

the Government.

(2) The

Board shall

give theperson so

appointed all

facilities for the proper

conduct of the

inquiry

and

furnish to him such documents,

accounts andinformationin the

possession of theBoard as he may require.

144

21.

Power to

supersede

the

Board—(1)

If,

on consideration of the

report

under

section 20 or

otherWise,

the Government are of

opi- nion that

the Board has

persistently

made default

in the

performance of the duties

imposed

on

it

by

or under the

provisions

of this Act or the scheme or

has exceeded or abused its

powers, the Governmcnt may, by

notificationinthe

Gazette,

supersede theBoardforsuch

period not

exceeding

SIX

months

as

may be

specified

in the notification:

Provided

that,

before

issuing

a notification under this sub—sec- tion, theGovernment shall

give areasonable

opportunity totheBoard to show cause

why

it should not be

superseded

and shall consider the

explanations

and

objections,

if

any,

of

the Board.

(2)

Upon the

publication ofanotification

undersub- section

(1),—

(a) allthe

Directors of theBoard

shall, asfromthedateof such

publication,

vacate their

offices

as such

Directors;

(b) allthepowersand

duties,

which maybeexercisedor performed by theBoard

shall,

during the

period of

supersession, be exercised or

performed by

such officer or

officers as

maybe specified inthe

notification;

(c) allfundsandother

properties

vested in theBoard

shall, during the

period of

supersossion, vestin the

Government.

(3) 0nthe

expiration ofthe

period ofsuperscssionthe Government shall reconstitute the

Boardin

the manner

provided in section 6.

22. Protection

of

action taken in

good

faith—No

suit or other legal proceeding

shalllie

against any

Directorof the

Boardorthe Chief

Executive

Officer or

any other personin

respect of

anything which. is in

good

faith done

or

intended

to be done under

this

Ac)"; or

any rule made thereunder or under the scheme.

23. Bar

of

jurisdictwn

of cimlcourts—No civil court shall have

jurisdiction

to

settle,

decide

or deal with any question

or to determine any

matter which is

by or

under

this

Act or

the scheme required tobe

settled,

decidedordealtwithortobedetermined

by the Government orthe Board or

the Chief Executive Officer or

any other officer

appointed

under sub-section

(i)

of

section 7.

24.

Special

provisions for transfer

and

posting of welfare fund mfabltshed

by

custom or

agreement—A11

welfare funds established either

by

custom or

agreement

before the date of

commencement of

this Act

and

standing

to the credit of

the

employees

on such

date M—

m

L_

_

_4

'4

145

shall,

notwithstanding

anything tothe

contrary

contained inany law

for the time

being

in force or in any deed or other instrument, stand transferred

to, andvest intheFundestablished

undersec- tion 3 and shall

be credited to the accountsofthe

employees

entitled thereto inthe Fund.

25. Power to

make

rules—(1) TheGovernment may, by notification in

the

Gazette,

make

rules

for

the purpose of

cariying into effect

the

:provisions

of

this

Act.

(2)

Every rulemadeunder thisAct

shallbe

laid, assoonas may be

after

it is

made,

before the

Legislative

Assembly

while it is in

session for

a

total

period

of fourteen

days

which may be

com- prised inone

sessionorintwosuccessive

sessions, and if,

before the expiry of thesession in

which it issolaidorthe

session

immediately following, the

Legislative Assembly

makesanymodification in the rule or

decides that the rule

should

not be

made,

the

rule shall thereafter have

effect

only insuch

modified formor be of no

effect, as the case

may be; so

however that any such

modification or annulment shall be without

prejudice

to the

validity

of

anything prevxously done

under thatrule.

26.

Repeal

and

Saving—(1)

The Kerala

Motor

Transport Workfrs' Welfare Fund

Ordinance,

1985

(38

of

1985),

is

hereby repea ed.

(2)

Notwithstanding such

repeal, anything done or

any action taken under the

said Ordinance

shall be

deemed

to have been done or

taken under

this

Act.

SCHEDULE

[See/

section3 (3)] Matters for

which

provision'may

be made inthe

scheme-

1.

The

time and manner in which contributions

shall be made

tc the Fund

by

employers

and

by,

or on

behalf

of

employees (whether

employed directly, or

through an

agency), thc contributions which an

employee may make

under section 4 and the manner in which such contributions maybe recovered.

'

2.

The

payment by

the

employer

of such sum of money

as

may be necessary

-to meet the

cost

of

administering

the

Fund and the rate at which and

the

manner

in Wthh such pay- ment

shall be

made. 25/686/MC.

10.

11.

12.

Via.

14.

15.

16.

17.

18.

146

The constitution

of'any

committee for

assisting

the Board. The manner in which account shall be

kept,

the investment of money

belonging

to the

Fund in accordance with any directions issued or

conditions

specified by

the

Government, the

preparation

of

the

budget.

the audit of accounts and the submissionof

reports to

the

Government. The conditions under which

withdrawals from the Fund

may be

permitted

and

any deduction or forfeiture

may

be made and the

maximum amount of such deduction or forfeiture. The fixation

by the

Government in consultation with the Board of the rate

of

interest

payable

to members. The forminwhichan

employee

shall furnish

particulars about

himself and his

family

whenever

required. The nomination of a

person

to receive

the

amount

standing to the

credit

of a

member after his death and the cancellation or variation of such

nomination. The

registers

and records

to be

maintained with

respect to

employees

and the returns to be furnished

by

the employers or

agencies. The form or

design

of any identity

card,

token or disc for the purpose of

identifying any employee,

and for

issue, custody and

replacement

thereof. The feesto be levied for any of the

purposes specified

in this schedule. The conditions

under

which

a

member may be

permitted

to pay premia onlife

insurance from the

Fund. The further powers, if any, which may be

exercised

by

the oflicers

appointed

under this Act. The mannerinwhich the

Directors

of the

Board shall he chosen and

appointed. '

The manner in which any welfare

fund vested under section 24is to be

brought

and

credited to the accounts of the

employees

entitled thereto

in

the Fund. The rate

of

gratuity payable

to

members and

the conditions for such

payment. The conditions under which any amount due to the Board may be

written off. Any

other matter whichistobe

provided for in theschemeor which may be

necessary

or

proper

for the

purpose of implementing the

scheme. ,__.

12