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.
.
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.
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
9°
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