Tamil Nadu act 037 of 1971 : The Tamil Nadu Fleet Operators Stage Carriages (Acquisition) Act, 1971

DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. The Tamil Nadu Fleet Operators Stage Carriages (Acquisition) Act, 1971 Act 37 of 1971

Keyword(s):

Acquired Property, Fleet Operator, Motor Vehicles Act, Operator, Permit, Person Interested, State Carriage

1

Short title and com- mencornent .

Definitions.

, ,

pied @erators Stag-c Carriages [I971 : T. N. Act: ;37 (Acquisition)

TAMIL NADU ACT No. 37 OF 1971.*

THE TAMIL NADU FLEET OPERATORS STAGE

CARRIAGES (ACQUIS 1TIUX) ACT, 1 971.

[Received the assent of the Presirlent on the 4th December 1971, first pztblishcd in the Tamil Nadu Governinent Garette Extraordiytur.y otz the 7th 'December 1971 (Agrukyana 16, 18931.3

An Ati In provide for the ncqllisitiorl of stage carriages

oj'flee t qperators holding $fly or more stage carriage

permils and for certain other matters connected there- with in the State of Tamil Nudu.

W H E ~ A S under clauses (b) and (c) of Article 39 of tha Constitution o f India, the State should, in particular, direct its policy towards securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good and that the operation of the economic system does not in the concentration of wealth and means of prod

to the common detriment ; AND W ~ R E A S for that purpc'se it is expedient a to nat

lise the commanding heights of the economy ; AND WHEREAS it is necessary in the public interest to acquire all passenger transport divisions o f fleet operat s ' holding fifty or more stage carriage permits ; 8% BE it erlacted by the Legislature of the State of Tamil Nadu in the Twenty-second Year of the Republic o f

India as follows :-- %*. J

1. (1) This Act may be called the Tamil Nadu Fled h.5 Operators Stage Carriages (Acquisition) Act, 1971. - I^{' -}

(2) It shall come into force at once. \. $.a *

2. In this Act, unless the context otherwise requi

(a) " acquired property " means the stage carria and other property vesting in the Government u section 3 ;

(b) "administrator" means an administrator appoi under section 13 ;

(e) " authorised officer " means an authorised o appointed under sectiop 14 ;

(d) '"ward " means any award of an arbitrator under section 5 ;

7- - -. -.-

*For Statement of Objxts and Rarsons, see Toiriil Nadu G Gazette Extraorfinsuy, dated thc 28th Jtily 1971, Part IV- page 701,

2

71 : T, N. Act 371 Fleet gperators Stage Carriages 1 2 13 (Rcquisiflun) 8

(el " fleet operator " means an operator holding on th June 1971 or on any date subsequent to the 19th ne 1971 fifty or more stage carriage permits notwith-

ding that all or any of such stage carriage permits expired after the said d;:e 'r-7:' %fore the rotified

Provided that in cclmputing the number of stage cam'ap permits for t t e purposes of this t:lause.-

6) the number af psr;aixs in reaspect of rzjer-~*e ~ f ; id25 kept by the operator to maintain the service ; cr

(ii) the number of temporary permits granted under clause (a), clause (b) or clause (c) of section 62 of the Motor Vehicles Act,

shall be excluded ;

(f) " Government " means the State Government ;

(g) " Motar Vehicles Act " means the Motor Vehicles Act, 1939 (Central'Act IV of 1939) ;

gh) " notified date " in respect of any fleet operatom means the date specified in the notification issued under ction (1) of section 3 in respect of such fket operato 8 ;

3 P

(i) " operator " means any person whose name is eiltered in the stage carriage permit as the holder thereof ;

(13 "peimit " means the permit granted under the

Motor Vehicles Act authorising the use of a vehicle as a stage carriage in any part of the State ;

(k) T' person interested " in relation to any acquired property includes the fleet operator and any other person claiming, or entitled to claim, an interest in the compen- sation payable on account of the dcquisition of rmch pro- under this Act ;

( I ) a stage carriage " shall have the game meaning as in clause (29) of section 2 of the Motor Vehicles Aat and includes-

(i) any movable property ancillary or incidental to the maintenance and control of such eta ga carriage ;

(ii) any r i a in or over inch stage carriage or movable property ;

6-1-4267+?8

3

Fleet Operurors Stage Carriages [I972 : T. N..Act S? .

Gfcquisit on) \ i: < 7

(iii) any reserve vehicle or vehicles mr! 02 t e rn

porary permits ,;

t . c .

(m) words and expressions uted 'her$&&' *(md :- .:

defined but defined in the Motor 'Yehicles A;& ~ G u have the meanings re~pect'i vely assigned to them in ,that $ot. ,

Vmtirg of 3. (1) On and from such date as may be notifiedbiL * 1 stam carriages, the Government ,in this beha1f;in ,respect of any (fleet ope- I

ctc., in the rator, every stage u^~Li;a&c: ovmd or operated :by suoh a o m n m r , fleet operator shall vest in the Government absolutely ' '

and f~f:e From. af f er~aumbcansies. ^f

, * j . t : : a

(2) Upon the issue of a notification under sub- ,

section ( I ) in respect of any ffeetloperator--, 4 . .+

" / * ,

(I) all 1 ands, buildings, work-shops andiother pla-

and all stores, instruments, machinery, tools, plants, appnratus nnri other equipment exclusively used for the

miintenance or repair of, or ,otherwise in ~oonniction with the scrvice of, stage carriages ; and

1

( i i ) all books of amounts , registers;&mds and all other documents of whatever nature relating to the . .

stage.carriages vested inkt he Ga~mnment.~der~.sdb~~tion ._

(1) or to.the pr~perty~mentioned in.clause (i) ; q a , . -

.t sl~all vest in the Government absolutdly anii fie

from all encumbranoes.

(3) he stage ~arriages and, other proptiit vesting

in the Government under sub-section (1) and subsection (%)shall with effect onand from the notified d to have bee2 acquired for a public purpose

Duty crf n a sparrrtor to furnirh particulars. .

(4) Before issuing a notification under s;b--srctio (I), the Government shall call upon the fleet operat

to show oause why the\stage carriages and ot referred lo in sub-seotions(l)and(2)should not .& and after considering the cause, if any;shown

operator and afier giving the fleet operator an of being heard, the Government may pass su

they deem fit.

. : > - ;

4. The aeet operator .sdll, within thirty.diys from the - .. A . notified date or w~thjn+.such fuaher, t itpe' as ik. Goye mentmay allow in this behalf, furnish td thi G ~ $ : @ & ~ ~ ~

m y Miiwr uuthorlsed'by th& i q this? rj;,klr aj,Pl

putioulars of all liabilities and dbligatl(j.& ihc-

;;i* .*i' .j"rg,J,>$

r P i S - - - - C , . -"-DV"-DV t-- r^i* i *-

4

. , I

1236' FleeeetOperororsStage~arria~es [I971 : T.N. Act 37 ?

(Acqtrisitlun) '

(g) nothing in the Arbitration Act, 1940h'(

. Act X of 1940), shall apply to arbitrations under'thi k ,

". '; Payment of

1, :?$- mpensa -

t Gr. ' 6"

tioa Compensa- tion to bo substituted =qtY in

&a@ .< ,dges.- a ] + a

: i l ! h ' i C Q ~ r . tion iiabla . . .

to deduction in cbrtah cam*

a - I ( IJ

a 6. The amount of compensation dcterinined' uqdq . +:

sect j on 5 shl~ll =[after the deduot ion, if any, made uridideq *

this Act1 be paid to the person intbrested aftgr givi.$$ + ,

reasonable noti&. to all the persons interested., ^'3, . -yE i i 1 . ; , , " 5 :-.j ! $ . ."

7. Any debt, mortgage, charge or &her dncumb or1 ien, trust or similar obligation attaching to the,ae propeny shall attach to the compensation payable this Act in su ion 'for the acquired 'pro@rty.

' 1

(2) =[(a)l Any person who wi in oonneotson with the acquire

5

1971 : T. N. Act 371 Fleet 0p0ratq1-s Stage Carriages 1237 (Acquzsitionj

~ [ ( b ) Where under any law, a ~ r d . agreement, conto

ract of service or otl~esu~ise, t l ~ c salary, wages, !cave salary,

bonus, pension, gratuity, provident fund, or other payment referred to in clause (a) becomes payable to the person mntioned in that clause after a specified pericd of service rendered by such persbn 'in connection with the acauirrd property and where the acquired property vests it1 I;.:

Government under sub-section (1) of secrion 3 befdrk the expiry of the said specified period, the Beet operator shall be liable to pay in rcspcct of such salary, wages, lcnvs

salary, bonus, pension, gratuity, provident fund or other

payment, an amount equal to the amount which bears to the full salary, wages, leqve salary, bonus, pension, gatuit y, provident fund or other paymei~t pa ya bie after the expiry of the said specified period, the same proport ion as the period up to the notified date bears to the whole

of the said specified peri~d.]

(3) Subject to the provisions of sub-section (1). the Goverument shall, zfter the claims of secured creditors are satisfied, be entitled to deduct from the compensation payable to the Peet operator atl amount equal to the amount required to discharge the liabilities referred to under sections (1) and (2) or obligation of whatever kind

(including liability in respect of provident or supef-

annuation find or any other fundsubsisting with the fleet operator on the notified date) in relation to p:rso~s w l ~ o

have become the ctm.ployees o f the corporation or C P ~ -

pany under sub-ssctim (2; cp @.-.'fib n 15.

(4) The clnims made undcr sub-scctkn (1) or 'sub- section (2) and any dispatc regarding the amount to be

deducted under sub-section (3) shall bc decided b3; the arbitrator who sfla11 f ~ l l o w such proccdurc: as t~l::y be

prescribed in this behalf.

9. (1) Thc amount of compensatiol~ determincd un&ct Manner of

sedjon 5 shall 2fafter the deduction ,if m y , made uttd;' payment of

---.- cornpensa-

1 This clause was added by section 3 of the Tamil Nadu ~ i e t tion.

O ~ Q ~ S . Stage Carriages (Acquisition) Amendment AQ, 1972 ( T a d Nadu Act 30 of 1972), which was deemed to have come info

force on the 7th December 1971. . J

$ This expression was inserted by section 4 of the Tamil ~ a d u

leer paa at ors Stage Carriages (Acquisition) Amendment ~ c t , 1972 (Tamii Nadu Act 30 of 197% which was deemed to have come jato force on the 7th December 1971. a ,

6

this Act] be given by~he Goirernment to the Pttdbn inte- rested a t his option;--

(a) in c a d (to be paid bJ cheque drqvh.on th;e' Rlserve Bttnk) i'n three equal annual in'stalblits-, tfi& of cctdl instuiment carrying intqest at fli6 rdt6 of six per c.:nt per ann~lii fro& the hdt ided date,. 6'r

(b) in safeable or otheriist t ransfe'r8bld prorhisd~rl)t noteij or st6 Ck &tacatek o f tbit' ~0~krnIItkhf rss~ed'tt'hd1 ble at par, and r n a t ~ $ ~ st thfi end df- ⁱ :

( i ) ten yein from the notified dateahid o a ~ y inrcieit from such. date dt thb rate of six grid a! p cent per annum, or

(ii) thirty years from the notifie'd, date a .. . and y ing i n: erest from such date ar the h t e of seven a*

a half per wnt per annu&, or r

(c) partly i i cash on t h ~ Reserve Bank) and jt jes spL ~i f i rd in subgause (i) or of clause (b), as may be required by t or

(d) partly in such nu in sub-clanse (i) of. c!ausc (b) a of seourities specified, in su6clause m y be required by' the pison ink

(2) he first of the three eq$l a h a 1 referred -0 in clause (a) of sub-sea

. and the ~ecuritie~,ieferre'd t6 in section shall be isstied, wi of receipt by the Governme in that sub-seelo nc or, +lie. lid iu"cli.

ox&ciM, from t lieie- latkst )ate befdre ought to have been exercised.

1 9 ,

,"

(3) The option referrid to in. su exercised by the person interested of a period of three months from th ?.qJm,n;l - - " . .. - -. 1 . ' e - - . - r . . - ."-

7

1971 : T. N. Act 371 ^r b*!eet ope rat^;.^ F's?e 4, (Acquisitim)

ithin. such further time, not exoeedjng &ree months, as the Government may, on the application ofrhe person

allow) and the option so exercised shall be al and shall not be altered or rescinded after it has been

(4) Any person interested' who omits or fbilb to exercise the option referred to in sub-sect io a (11, within the rime specified in subsectiozi (3), shalt be deemed' to have opted' for payment ih securirhs specified jn sub- clause (i) of clause (b) of sub-sectilorr 41):

f 5 ) Not withstanding anything contained in this ~ e c t i ~ n,, any person i n~erested may, be'fore the expiry of

three months from the notified date (or within such ffirthr

timt., not exweding thzce months, as tllc: Government

may, on the application of the person interested, allow)

make an application in writing to the Government for an interim payment of an amount equal to twenty-five

per cent of the amount of compensation as roughly esti- mated in the manner prescribed, indicating ther.-~n whether the payment i s desired in cash or in securities specified

in sub-section (I), or in both.

(6) The Government shall, within sixty dilys from

the receipt of the application referred to in sub-section Q, make the interim payment to the person interdsted inac( ;ordan~ withthe optionindicated insucliapnJicatio~~.

(7) The interim payment to a person ijltcrrsfed

urder sub-section (6) shall be set off against the total

amount of compensation payable to such person intemted

under this Act and the balance of the mmpel-rsatic n re- mining outstanding after such payment shall be given to the person interested in accordance with the option

exercised, or deemed to have been exeicised, under sub- section (3) or sub-section (4), as the case may be :

Provjded that where any part of the i nterjm payment

is obtained by a person interested in cash, the payment

so obtained shall be set OX, in the first instance, against t h first insta Imeni of the cash payment referred to in

sub-section (I)and in case the payment so obtained exceeds the amount of the first instalment, r k excess amount

shall be adjusted against the second instalment and the klance of such excess amount, i f any, against the third

instalmefit of the cash payment.

8

l

et OpeIra tors Stage Carriages [1971 : T. N, Act 37 ' :

(Acquidtion) :^{' .}. % % , F ad " t "^{. r..i}

,⁴

10. Any person aggrieved by an award^ may, within thirty days from the date of such award, prefeqgn appeak .

m e a o f totheHighCoq: . .$ compensation. , - . , f - 3 i ; , * ,; - - i i ," ; .. >' ;%I ;<

Provided .&at the High Court may entertain: the. +!

appeal after the expiry of the said period of thirty days.; if it is satisfied that tb appellant was prevented bysuflioient '1

cause from filing tbe apwal in time. * J i t , .

I I . r " .

11. The arbitratdr appointid :under sectioq ' 5, .while i

holding arbitration proceedings under this Act, and tb,e ^*

authorised. officer while deciding a dispute under ' ~ c t i m ^3e 14 shall have all the powers of a civil court, while try in^

a &it, under the Code of Civil Aot V of 19085, in respect of the namely:-

I

(a) ~unm~ning and enforcing

. any person and examining him on oath ;

(b) requiring the discovery an document ;

(c) reception of evideace on affidavits ;

r t

(d) requisitioning any public record from any or office ;

(ej issuing oomissions for exa Bffcct of

~-ctiona 12. Wherc the Government are of opinion that any not bona- fleet operator has on or after the 19th June 1971 disposed fidc. of any asset relating to the service of stage carriages

I the maintenance or repair of, or otherwise in c~nnecti with the service of, stage carria

sale; exchange, gift, lease or other

expenditure, otherwise than in the nor

with a vitw to benefit unduly the fle other person and thereby caused loss to as succeeding owners oft he acquired propert rrn~nt shall be entitled to dedu payable to the fleet operator un which they consider to be the loss sus

Provided that no t ido f the int dcuccri~n shall be given to the fleet yssr from the notified date. 4- .-

, 7-.&N4'.*r..*r $)- 'a '- me . . - .

9

c

71 : T. N. Act 371 Fleet Operators Staga Cnwirrges 1241 (Acquisitia~)

13. The Government may appoint such number of A~vintnlent of s may be considered necessary as administrxttors adm~nistrators. arranging the take over of the acquired property and carry out such other duties as may be assigtjcti 10 them

the Government for carrying out tho p[rr!toscs c > f ' t i r t s !

1.4. (1) The Gc. vemn;-,c: m y ap:- : r.: : L c -. r.2. r:-3 :Z A*;~C,*-~:~;.:

f officers as may be rcnsidtrcd neks=ry a r d pji ';j ax+J?5-

- , % 7

-__________

.-- b . 4 --r- -y v r w u v t 3 L. )~CCC~C C/U/ I L V S G ~ , Y i A . ~ . A E ~ ~ ~ ' I ;

heara.^4. 8 .t ^{f s}6 . . x *? Jg:#$L;b, * 4 s . $ ; * ! & * k ; +jJ:)

Service of 20. (1) Subiect to the provisions of this secticbn;'&di

srders. any rules that may be made under this Act, every ' -oh ' made under this Act shall, - + , , , !+

, ..: 'sapl.:

(a) in the case of any order of a kenera1 natke':br"'

. .affecting a dass of persons, be published in the Tamil2

. . .Ndu Government Gazette ; and * * a I S z :

i - 3 $ ! * 3 (b) in the case of any order affecting an individual, [ .corporation or firm, be served in the mannf:r provided for -the service of summons in rule 2 of Order ?QCIX or m e 3 8;

,of Order XXX, as the case may be, in the Erst Schedule

1

I of th- Code' 'of Civil Procedure, 1908 (Central Act V ' bf

1908) ; and . . +^{* It} ! J )ⁱ

1 . . ' I .

i

f , a . (CJ in the case of any ~ r d e r affecting an indiuidu;tI

person (not being a corporation or firm) be ~erved on, such gersoa-

(i) by delivering or tendering i t to that perm

(ii) if it cannot be so delivered or. tender&,~$$~w~ delivering or tendering it to any officer of such'pe&op ~2 ,q any adult male member of the family of such person, or..! by affixillg a copy thereof on the outer door or on some ., conspicuous part of the premises in which that person

*is known to have last resided or carried on business or

personally worked for gain; or failing service by these -zneans, I > : z ,

1 .. ,

(iii) by post. v . *

13

71 : T. N . Act 371 Fleet Operators Stage Carriages 124 5 (Acquisition)

vernment may, by notification, direct that Delegation of

rcisable by them by or under this Act shall, power$*

stances and under such conditions, if any, may be specified in the notification, be exercisable also an officer subordinate to the Government. uit, prosecution or other legal proceeding protection of

1 any person for anything which is in good adion taken

faith done or intended to be done in pursuance of this in good faith.

Act or any order made thereunder. ,

(2) No suit or other legal proceeding shall lid against the Government, the administrator or any other officer aused or likely to be caused by anything

faith done or intended to- be done in is Act or any order made thereunder.

23. Save as otber wi se expressly provided in this Act, of ju.ri?di* floa of c~1v11 no civil court shall have jurisdiction in respect of any matter which the Government are, or an arbitrator or

authorised officer is, e.mpowered by or under this Act

to determine, and nn in$lnc!ion shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

24. Whoever contravenes any provision of this Act, p,,lty for or any rule made thereunder, or any order made or offences. direction given under this Act, or obstructs the lawful exercise of any power conferred by or under this Act, shall ith fine, which may extend to one thou-

25. Every arbitrator, administrator, autharised officer Certain persons and every other officer empowered by the Government, to be public

while exercising any power or performing any duty*lnder Sell-ntso

this Act, shall be dcemed to be a public servant with~rl

the meaningof section 21 of the Indian Penal Code (Central Act XLV of 1860).

26. Save as otherwise provided in this Act, the provisions ~ c t to ever- of tbi6 .Act shall hwre e ffeot notwi thtanding anything^QB~R~

14

Fket Opera tors Stage Carriages [19x : @.N.Ac~, 3 ~ : ,

(Acquisition). t ,

(2) In wart icular, rind. without pr of t . power, -suci~ ,rul