':\:'' bill no 63 of 1966   "  ~    i',  ','      il " ~, ,', rt,t :    " the road transport corporations       (amendment) bill, 1966 ~:~ a  billfurther to amend the road transport corporations act, 1950 be it enacted by parliament in the seventeenth year of the republic of india as follows: ' i,, 1 (1) this act may be called the road transport corporations short ~:' amendment) act, 1966  title and  "') comi:''·  r:~ ) it shall come into force on such date as the central govem- mence-)i m, ~ may, by notification in the official gazette, appoint ment ,:·,r(,' amend_ llll'nt of s('dion 1 2 for sub-sectwn (2) of section 1 or thl' road transport corpora-,ons act, 1950 (hereinafter referred to as the principal act), the 64 of 1 following sub-section shall be substituted namely: "(2) itcxtcn,ts to the whole of india: provided that in :ts application t~ the union territory of 5 delhi, ai -,baa be subject to the mddificationi specified in thc schedule" :1 after section 48 o'f the principal act, the following schedule shall be inserted, namely:-in,;crtiun of schc_ dule  'the schedule [see section 1 (2)]1 section 5 -for section 5, substitute:--"5 (1) a corporation shall consist of a chairman, to be appointed by the state government, and five other members of whom-constitution of road transport corp oration (a) two shall be elected by the members of the metropolitan council cf delhi from among themselves; (b) one shall be elected by the membersof the municipal corporation of delhi from amo?g themselves; (c) two [to be designated respectively as member (finance) and member (engineering)] shall be appoint-~?!!~~,~ ed ~ the state government (2)' 'rile s~ate, gov~ent 'may, if it so thind'fit, appoint one of the elected members as the vice-chairman of the corporation (3) the term of office of, and the manner of filling casual vacancies among, members of the corporation shall be such as may be pre~cribed (4) the ralary and allowances and ether conditions of s~rvicc of thc chlirmln, the member (finance) and the member (engineering) and the allowances payable to the elected members ot the corporation shall be such as may be prescribed ' , (5) the chairman and any other member of the cort'  ""poration shall be eligible for re-appointment or, as the case maybe, re-election" ' ! 2 se lln 6-0mit sub-section (2) 3 sec/ion s-om·t the prov;so 4 section 12-(a) in 'clause (b), after "vice-chlirman~'; iosat "or to the member (firance) or the mc'mber (engineerirl)";' , 5 (b) in clause (c), for "the chief executive officer or general manager or any other officer of the corporation", substitute "any officer of the corporation" 5 section 13-[0 for "the chief execptive officer or general manager or any oiher offtcer·of the corporation", substitute- "any officer of the corporation"'  ' 10 :';'" ~\ j<, 6 sections'i4'a~d 15-for sections 14 and:l~ • ~q~titute-15  , '4 (1) a corporation may appoint such:' number of officer officers and servants as it con~iders necessary for the efficient and s!,rf• rf ~'t f t" vantso pe ormance olr'l s unc ions the cor (2) the ctmditions of appointment and service and scales porauon  of pay of the officers and servants of a, gorporat~,?n shall be ~uch as may, subject to the provisions of section 3"4, 'be deter- mined ,by regrhlatibns' made under· thfsact:, t, ,~,' '1": n ' ,rs,"(f),tl\'e'!cbajrman oljh~;c01"pql'1ltiqn,shall be the powersof executive heaq·tjutr~and all pftj~ ~'-='y~~ the chairmad; corporati~~ sha~ be subordinate to him " :(i) ~~:::e) (2) the member '(finance) shall be the chief accounts etc officer of the corporation and shall have the right to record his views on every proposal involving expenditulmit from the fund of the corporati,on prior to the con~id"'ration of such proposal by the corporatilln (3) the member (engineering) shall be the 'chief ]\1'f'chanienl enginee'f of the corporation"   ":orporation to obtain tbe approval 01 central 7 netlj seclion i9a-after section 19 insert-"19a in the exercise of any of 'its powers under this act, the corporation shall n  - incur on any single work"lrrvfce or scheme or for nny other purpose a capital expenditure of more than five lakhs of rupee<: except with the previous a~ proval of the central government" "in consultcltion with the governmentin state certain cues 9 seerian 23-(a) for sub-section (i) substitute-ii (r) the central government may provide to a corporation any capital that may be required by the corporation for the purpose of carrying on the undertaking or for purposes connected therewith on such terms and conditions, 5 not inconsistent with the provisiolle of this act, as that government may determine"; (b) in' 8ub-section (2), for lithe state government", substitute lithe central government"; (c) for sub-section (3), substitute-10 ii (3) the authorihd capital of the corporation shall be ·divided into such number of ehares as the central government may determine' and th! dumber of shares which shall be subscribed by the centrjl government and other parties (including persons whose undertakings have been acquired is by the corporation) shall  also·be· determined by the central government"; (d) in sub-section (6), for lithe state substitute "the central government" government" , io"sections 24 25 '1:7 and 29-for lithe state government", 20 wherever occurring, substitute lithe central government" u sedion 26- (a) in 8ub-ro~iod (i) for "the state govern-t"~ substitute "the central g,p;ebdnent"; ~ '-: (b) in sub-section (2), omit "the state government and" -, " 12 section 28-(0) in su]);section omit "and the state 25 government" and "the state government in con~ultation with"; (b) in sub-section (2), omit "'the state government in consultation with" 13 sections 33,35 and 37-for lithe legislature of the state", substitute "the metropolitan council of delhi" 30 '4 section 39-ln sub-section (2), for lithe central and the state government", substitute ''the central government" is section 44-ln sub-section (2) ,-(ci) for clause (a), substitute--1 , ci(ci) the 881arv and allowances and other conditions 35'j of servite of th"! olairman, the mcomber (firance) and ,~ the member (engine~ij'lg) srd the allowances payable to the elected members of the corporation;"; (b) in clause (b) omit "members of the corporation or other"; (c) omit clause (e); 5 (d) ill c)ause (",) for "under section 40" substitute "under sectio' 40 or section 48" 16 seetion 45---ln claus: (c) of sub-section (2), omit "other than the chief executive officer or general manager and the chief accounts officer" 17 for section 47, 47a ard 48, stibstitute-'47 on the establish'inent ofa· ccjrpcjrtttioh under section 3 veti~i!· (hereinafter in this section and in aection048 referred to as ofcertain "the new corporntion"),-properties in the  corpora-(a) all properties, movable and immovable, and all tion and interests of whatsoever nature and kind therein belong- provwona ing to or vested in the municipal corporation of delhi reludinl for the purpose ~f the delhi tr~port undertaking im- ::~~ • mediately before such ntablishdiellt !1j1ui1l vest in the new hems, etc~· corporation;  (b) all deets, obligatiohs and'lfabilities incurred, all contracts entered into, and all matters and things engage ed to be done by with or for the municipal corporation of delhi for the purpose of the delhi transport uudertaking and subs,istin'g immediately before such establishment shall be deemed to have been incurred, entered into or engaged to be done by with or for the new corporation; (c) all licences and permits granted to the municipal corporation of delhi for the purpose of the deihi transport undertaking and in force immedflrtely before such establishment shall be deemed to have been granted to the new corporation and shall have effect accordingly; (d) all suits, prosecutiollso and other legal proceedings instituted or which might ha~e been instituted by,  for or against the municipal corporation of delhi for the purpose of the delhi transport undertaking immediately before such establishment may be continued or instituted by, for or again!'lt the new corporation; (e) all bye-iaw~ relating to transport services made s by the municipal corporation of delhi under sub-section r  , of sectign 481 of the delhi municipal corporation ",,-t, r957 a"ri in force jmmartiately hefore "uch 66 of 1 establishment, shall in so far as they are not inconsistent with the provisions of th:s act, continue 10 in force and be deemed to be regulations made by the new corporation under rection 45 unless and until they are superseded by regulations made under that section; • j •• ' (/) notwithstanding anythjng contained in section 14, every officer an'd other employee of the municipal is corporation of delhi appointed or deemed to be appointed for' the purpose of the dplhl transport undertaking shall be transferred to, and become an officer or other employee of, the new corporation with such designation as the new corporation may determine and shall hold 20 office by the rame tenure, on the same remuneration and under· the same terms and conditions of service as he would have held the same if the new corporation had not  b~n es~b&hed, and shall continue to be so unless and  unijlslu:lfa tenure, remuneration and terms and condi- 25  dons of servictl are duly altered by the il(!w corporatio~: provided that the tenure remuneration and the terms and conditions of service of any such officer or other employee shall not be altered to his di~advantage without the approval of the central goy-emment: 30  provided further that any service rendered by any stlch officer or other employee before the establishment of the new corporation shall be deemed to be service rendered under that corporation 48 (i) where the sum total of the value of the prope'rties and int~rests therein vested in the new corporation under payment of val up of assets and jiabilitits r 1<tuo; (a) of section 47 (hereinafter in this section referred to as "the assets") exceeds the sum total of the debts, ohl ij!ations and liabilities which are deemed to have been incurred by the new corporation under clause (b) 01 that section (hereinafter in this section referred to as "the liabilities"), such excess shall be paid by the new corporation to the corpor',ltion of delhi on ~uch term~ and conditions its id"ly he determined by th:! cent rill go\'ernm~nt is this bchllf 5 (2) where the sum total of the liabilities exc:!eds the sum total of the valu:! of th~ as'lcts, such excc5'i shlll be plid by th, municipal corporation of delhi to the new g>rp lr,lti(n on such terms ~nd conditions ~:s m~y be determined by the c(ntral government in th~s b(hal~ 10 (3) the sum total of the valu'! of the assets and the sum total of the liabilities sball be such amounts as may b~ arrived at by agreement between the municipal corporation of delhi and the new corporation and where no such agreement can be reached, the amounts shall be determined by an arbitral tribunal consisting of one nominee of the municipal corporation of delhi, one nomin~e or the nevi corporation and a chairman to be nominated by the chief j~tice of the high court exercising jurisdiction in relation to the union territory of delhi (4) an appeal shall lie to the aforesaid high court against the decision of the tribunal and the order of the high court on such' appeal shall be final' on the 18th augu~r, 1965 in reply to a starred quc3tion in 1 he lok sabha, the important changes contemplated in the organis:ttional set up of the municipal corporation of delhi, were indicated by the government it was then stated that the exir,ting delhi transport undertaking of the municipal corporation of delhi would be replaced 'by a separate statutory body this bill has been brought forward to give effect to that proposal 2 it is intended that the statutory body in place 0' the delhi transport underta~ing should be the road transport corporation establi£hed under the road transport corporati~n act, 1950 (hereinafter referre4, to as the principal ~ct)at present the road transport corporations act, 1950 does not, extend to the union territory of delh,i  accordingly the bill seeks to extend this act to the union territory'of dedii subject to·the·modifieations specified in the schedule contained in the bill ' 3 the important modifications are as under:-(1) having regard to the ~pecial requirements of delhi, paragraph i of the schedule seeks to modify section 5 of the principle act to provide inter alia thal the road transport corporation will consist of six members of these, two will be elected by the members of "the metropolitan council of delhi and one by the members of the municipal corporation of delhi, from among themse1ves the remaining three members, including the chairman, will be appointed by the state government (2) paragraphs 13 of the schedule seeks to modify sections 33,35 and 37 of the principal act to provide for the laying of the accounts of the road transport corporation and the audit report thereon, the 'returns, statistics and other infordution with respect to the property and activities of the corporation and the notification issued under section 37 assuming control over a part of the undertaini of the corporation, before the metropolitan council of delhi (3) on the establishment of the road transport corporation for delhi, the properties of the delhi transport undertaking and its liabilities as well as the officers and other employees of that undertaking will stand transferred to the road transport corporation provision has also ~een made for the determination of the value of assets and sum total of the liabilities transferred to the road transport corporation and the financial adjustments in respect thereof between that corporation and the municipal corporation of delhi new sections 47 and 48 proposed to be inserted by paragraph 170f tm schedule see, to make provisions for these purposel 4 opportunity has also been taken to extend the principal act to the states of jammu and kashmir and nagaland and the union territories of dadra arid nagar haveli goa, -daman and diu and  pondicherry new dhlhi: g l nanda the 2ist august, 1966  s recommendation under article 117 of tile constittmon of india[copy of letter no 3/3/6s-sr (r), dated the 23rd august, 1966 shri jai sukh lal hathi, minister of s~ate in the ministry of home to the secretary, lok sabha] the president having been informed of the subject matter of the __ further to amend the road transport corporations act, 1950, recom-':~~ds, under clauses (i) and (3) of article 117 of the constitution, the f~uction of the said bill in and its consider-eltion by the lok s~bha  financial j\iemorandumunder section 23 of the road transpon corporations act, 1950, as proposed to be modified by paragraph 9 of the schedule to the bill, the central government may provide to a corpcration any capital that may be required by it for the purpose of carrying on the undertaking or for purposes co~nected therewith, that section also makes provision for subscription by the central go\'ernment in the shares issued by a corporation for its authorised capital !-:ection 24 of the a~l as proposej to be modified by paragraph 10 of che schedule authorises a corporation to raise further capital with the approval of the central government by issue of new shares and makes  provision for the subscription by the central government in the new shares section 25 of the act as proposed la be modified by paragraph 10 of the schedule provides that the shares of a corporation shall be guaranteed by the central government as to the payment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the central govemment at the time of issuing the shares to meet the capital requirements of the delhi transport undertaking of the municipal corporation of delhi, loans amounting to rs9o lakhs and rs 130 lakhs were advanced to the undertaking by the central government during 'the years 1964-65 and 65-66 respectively and a provision of rs, 100 lakhs has been made for the; purpose during the c·urr:nt financial year, ie 1966-67 assistance on theselines by way ofloan and/or participation in the shares issued, if an y, by the new corporation for its authorised capital or for raising further capital may have to be continued for a few years more to meet the requirements of that corporation section 44 of the road transport corporations act 1950, empowers the state government to make rules to give effect to the provisions of the act sub  section (2) of that section as proposed to be modified by paragraph 15 of [he schedule to the bill, provides for the matters with respect to which such rules may ~ made these matters inter ·alia include the salaries and allowances and other conditions of service of the chairman, mem'ber (finance) and member (engineering) and the allowances payable to the elected members/of the corporation the term of o8lce :of and : the manner of filling casual vacancies among, members of the' cor-, poration; the manner in which the shares of the corporation shall ~,be allotted, transferred or redeemed; and the manner in' which the ~~t, profits of the corporation shall be utilised   2 section 45 of the act empowers the corporation to' make regulations 1ot inconsistent with the act and the rules made thereunder for the administration of the affairs of the corporation sub-_~ion (2) of that section, as proposed to be modified by paragraph :16" ;" of "the schedule to the ~ bill, provides for the matters ~ rtjf!·respect to which such regulations may ,be made these mat-: 'linter 'alia include the ;manner in which and the purposes for pe~ons may:be· associated:, with the' corporation under sec": ~-",,,,- 'time and place of meetiugs of the corporation~d the' mll"e" to be followed in regard to transaction of business at milei~t1l11ls; and the issue of passes to the employees of the cor-~ • ,  ' and other persons under section 19 ':·\~:3~ t);le matters with respect to which rules under section 44 ~d ,• ,  tions under section 45 may be made are matters of a routine   :~it:e or of detail and the delegation of legislative power is, thereore, of a normal character 'f~{ , 'i  (64 0, 1950) - - >i<   -  - chapter i  pjaj'mdl'aiiy1 (1)·  - short title, extent 4uhicommencement - - (2) it extends to the whole of india except the state of jammu abd kaihmir and the union territory of delhi - - - - - so (1) subject to rules made under this act, a corporation ihall consist of a chairman and such number of other members as the state government may think fit to appoint:·· constitution of road transport corporation (2) the state government may, if it so thinks at, appoint one of the other members as the vice-chairman of the corporation (j) rules made under this act shall provide for the representation both of the central government and of the state government concerned in the co~poration in such proportion as may be agreed to by 'both the oovemments and of domination by each goverdj1lent of its own representatives therein, and where the eapital df a co~ ration is raised by the issue of shares to other parties under sub-section (3) of section 23, provision shall also be made for the representation of such shareholders in the corporation and the manner in w~ich the representatives shall be elected by such shareholders (4) the term of office of, and the manner of ftllidg casual vacancies among, members of the corporation shall be such as may be prescribed 6      (1)                     -                                       -                                                        -                                                                         -                                                                                           -     (2) nothing in clause (d) of sub-aectiod (1) shall be deemed to disqualify the chief executive oftlcer or gederai mmager of a cor-poration for being chosen as, or for being a member thereof disquali-fication for being choledaa orfol' beina a member of cor-j)ol'atiod                                                                       -                                                              • 8 the state government may remove from office the chairman removal ' ~r any other member of the corporation wh<rof chairman and office   ~:·~  tt'· ,~  (b) without excuse sufficient in the opinion of the state government, is absent from more than four consecutive meetings of the corporation: ,i (0) is or becomes subject to any of the disqualifications members mentioned in section 6; or from • '" p~'-•'  provided that no member nominated by the central governshall be removed from ofllce witho~t the concurrence of that - - - - - may, from time to time, by resolution passed powerto· appoint committees and - - - - - delegat~ functions (b) delegate to any such committee or to the chairman or vice-chairman, subject to such conditions and l~mitations, if any, as may be specified in the resolution, such of its powers and as it may thi·nk fit; (c) authorise the chief executive officer or general manaor any other officer of the corporation subject to such cqnand 'limitationi,  if any, as may be specified in the reso-toexereise' such powers and  ~rfonn ~~h duties as it deem necessary for the efbcielit' day 'to day aadiinistration its business  all orders and decisions of a corporation shall be authenti- authentithe signature of the chairman or any other membtd" autho- cation of - • by the corporation in this behalf, and all other instruments ~~::~ by a corporation shall be authenticated by the signature of truments chief executive officer or cjelerai manager or any other officer of a cor-corporation authorised in like manner in this behalf poration ~  14 (1) every corporation shall have a chief executive ofbcer officers _ileral manager and a chief accounts ofbeer appointed by the and ser-,oovemmenl vanta of the cor-a corporation may appoint such other ofbc:ers and servants poration eaaalden deee&s8ry for the eftlcfent performance of its fude~ (1) the conditions of appointment and service and the scales of pl y of the officers ;lnd servants of a corporation shall-" (a) as respects the chief executive officer or general manager and the chief accounts officer be such as may be prescribed, ~nd ( b) as respects the other officers and servants be such as may subject to the provisions of section 34, be determined by regulations made under this act 15 (1) the chief executive officer or general manager shall be the executive head of the corporation and all other officers and servants of the corporation shall be subordinate to him the chief executive officer or general manager and the chief accounts officer (2) the chief accounts officer shall have the right to record his views on every proposal involving expendit~e from the fund of the corporation" prior to the consideration of such proposal by the corporation      chapter iv  ; fin an1c~, accounts and audit - • •capital of the corporation z3 (1) the central government and the state government may provide to a corporati()d established by the state government, in such proportion as may' be agreed to by both thego~emments, any capital that may be required by the corporatiqd fqr the purpose of carrying on the unde;ftaking or for purposes connected therewith on such terms 'and concutio~, not incorisistent with the provisions of this act, as the state government may, with the previous approval of the central government, determine (2) where the capital of a corporation is not provided under sub-section (r), the corporation may ralse; by the issue of shares, such capital as may be authorised in this behalf by the state government (1) the authorised capital of tlie corpofatiod shall be divided into such number of shares as the state government may determine; and the number of ~hares wnich shall be subsctibed by the state government the central governmeat and o:her -parties (including persons whose undertakings ha,'c been acquired by the  corporation) shall also b'! determined by the state go"emment in co~sultation with rhe central government"   - - - ' (6) th! corpq~·~\tio1 m(~ at any time, with the previous ap- 'plova} of the state government, redeem the shares issued to the other parties under sub-section a) in such manner as may be prescribed  24 if, after' the issue of shares under section 23, a corporation additional ' 'requires any further capital, the corporation may', with the previ-c~pital of ous sanction of the state government, raise such additional capital ~o~~~:~ :by the issue of new shares and the p~ovisions of sub-sections (2), ~s:'tt), (4), (5) and (6) of the said sectio:j shill apply to the' issue of r ~siich shares t  ,:~ : 3s the shares of a corporation shall be guaranteed i:»y the state guarantee 'yernment as to the payment of the principal, and', the payment by the j the annual dividend at such minimum rate as may be ft~ed by state ~the state government by notification published in the official gov~rn-" zette at the time of issuing the shares men  ,:::' z6 (1) a corporation may, with the previous appj'oval of the borrowing government, 'borrow money in the open market or otherwise powers the purpose of raising its working capital (2) with the previous approval of the stat~, government and central government, a corporation may also borrow money in open market for the purpose of meeting any ~xpenditure of a  _1 nature   (1) every corporation shall have its own fund and all receipts fund of corporation shall be carried thereto and all payments by the the ~r- "'  ,f'i" - " shall be made therefrom poratjon   (2) except as otherwise directed by the state government, all belonging to that fund shall be deposited in the reserve of india or with the' agents of the reserve bank of india, or  ted in such securities as may be approved by the state gov-,i;;ta;'38 (1) where the capital of a corporation is provided by the payment :~al goverrunent and th~ state government under sub-section of interest of section 23 the corporation shall pay interest on such capital and divi-iiipi1l1l!h rate as may, from time to time, be fixed by the state gov- dend ~!lellt in consultation with the central government and such inbe deemed to be a part of the expenditure of the cor- where the corporation raises its capital by issue of shares', pay dividend on such shares at such rate as may, from time to time, be fixed by the corporation, subject to any general limit" tions which may have been imposed by the state government il (~onsultation with the central government, and such dividend shal oe deemed to be a part of the expenditure of· the corporation %9 - (1) a corpolaion shjji make such provisions for cjeprecit tion and for reserve and other funds as the state government rna from time to time direct provision for depreciation and reserve and other funds (2) the management of the said funds, the sums to be carrie ft'om time to time to the credit thereof and the application of th moneys comprised therein shall be determined by the corporation: provided that no fund shall be lltilised for any purpose othe than that for which it was created without the previous approva ()f the· state government - - - - - accounts and audit 33 (1) the corporation shall maintain proper accounts and):h:· records and prepare an annual statement of accounts including th profit and loss account and the balance ~heet in- such form as may be prescribed by the state government in consultation with th~ comptroller and auditor- general of india (2) the accounts of a corporation shall be audited annually b the comptroller and auditor-general of india or his nominee an any expenditure incurred by him in connection with such audit shal be payable by the corporation to the comptroller and auditor general of india ( 1) the comptroller and auditor-general of india and any pel' son appo~nted by him in connection with the audit of the accoun of a corporation shall have the same rights, privileges and auth dry in connection with such audit as the comptroller and auditor general of india has in connection with the audit of the govern ment accounts and in particular, shall have the right to deman the production of books, accounts, connected vouchers and other -:iocuments and· papers and to inspect any of the offices of the corporation (4) the accounts of the corporation as certified by the com lmller and auditor-general of india or any person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the state government; and rhl!t governmed shall cause the same to be laid before the legislature 'of the state  chapter vmiscellaneous - - - 35 (1) every corporation shall furnish to the state govem- returns ~ jdent such returns, statistics, accounts and other information with an~ reo respect to jts property or activities or in regard to any proposed port~, scheme as the state government may from time to time require   "(2) without prej~dice to the provisions of sub-section (1), a ' shall, ·as soon as possible after the end of each financial , submit to the central and the state governments a report on exercise and performance by it of its powers and duties· under act during that year and on its 'policy and programme (3) the state government shall cause the annual report referto in sub-section (2) to be laid before the ;legislature of the -  - - - (1) if on receipt of the report of any ·inquiry held under power to 36 or otherwise, the state government is satisfied that it control a tdi~ssal'y so to do' in the public interest, the state government =:::~  ~~ notification in the official gazette, alithorise any person to in, of a   from the 'corporation, and ~o long as that notification is corporato admlnster in· accordance wifh such directions as d)ay be tion   time to time by the state government such part" of tbe of the corporation as may be specified in the notiftcaan, person so authorised may, for the purpose of so adthe said part of the undertaking, exercise all or any powers of the corporation or of any oblcer of the corporation t"h act, issue such directions as he thinks fit to the officers  [  10< of the corporation ana employ any outside agency   state government may by such notification direct that 1qi1r2t!s and expen"es incurred by the person so authorised towith such remuneration as the state government may allow to time to such person shall be paid within such time as bed by the state government from the fund of the corand if the expenses are not so paid, the state govem-· make an order directing the persons having the custody to pay to the person so authorised such expenses in · any other charges against such fund and he shau, so far to the credit of the corporation admit, comply with ,the state government  (j) every notification issued under this section together with a report on the circumstancea klaclini to its issue shall be laid before the legislature of the state, as soon as may be, after it is issued , - - ' - - - - - - liquidation of corporation  (6) in the event of a corpc)ration heml' plaeed in liquidatlo1l, the 'asse  aftbe, corporauo~ • aft~~ m~ti~>j theliabilitiea, if any,  un t, cihrid~ among the ceubal an4 the state government ,add ,auc4"p~f, p~t~ if  ,-,8s;1!j4l, n-ve li~b8eribed to the capital tn proportion to the contribution madf by each of them to th, total capital of ~!collw11iiiou,,:; "1 p',~( d', b,i; • , " - - - - - 44 (1) - - - - power to make rules (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matten, namel,:- _ • ii, ,,~, t;(4~ ·ti~e~rtditlq~ 'iind' mrier)4 ~ppo~tment of members  , oi":~" ~~~po~ation, th~ rf!p~~j\~~~op)n ~he corpt,ratroftof the ~nirlir and, the state gov~~~t ~~ i wher~ shar~ a~, ,issued to other parties under sub-sectj~n (3j of section 23, o( such shareholders and generally all matters relating' to, the constitution of the corporation:   ,(~):-remuneration allowailall or feel to be paid to the members of·· the corporatiod or otjier pei'iods  ociated with the corporation under section 18: - - - - - (e) toe conditions of appointment and service and the scales of pay of the chief executive of!lcer or general manager and the chief accounts officer of the corporation; - - -  (' - cs (1) - - - - - - power to makere-cuitions (2) in particular, and without prejudice to the generality of the mregoing power, such resuiationa ma, provide for ail or any' of the following matters, namely:-- - - • - (c)' the conditions of appointu1ent and service and·the icales l1  of pay of oftlcers and servanls of the corporation other' than the j ~~~~;l;qw· lhecutiv officer or general manager bnd the oief ,j,j , ,\,!\~  ta oilcer; t~i''j'i ,- - - - - :~: ~ ;;(j) ~be body known as the bombay state road transport cor- special = tile board thereof referred to- in the notil\cation of the pl'o\'i-!  t of bombay, no 1780,6, dated the 16th november, 1949 s10~s re- ' i8ferred to aa "·the existing corporation" and "board" latmg to ~:'  bombay_   shall, notwithstanding any defect in, or invalidity df, ___ t, or order under which they were constituted be d-1idl11l)1ii1l'flll" tobave beea validly codbtltuted as if all the prwt  ,,""  &aid notification had been induded and enacted in this {  r1 and this·section had been in force continuously on a:aci ftolft •• ', add accordingly- : :;j\!":::~~4 • t', , , r au' action· by and all tfansact~ wit~ the eliirinl·e'lot  _~  or board, including bdy action or tfansaetion by, whieh r,,d,:f,)p~¥, asset or right was aoq\iired or any habuit}'· or )lil!~tion whether by contract or otherwise, was incurred; shall deemed to have bee~ validly and lawfully taken or done; and' ··f 0" f ,~ ,(b) no suit, prosecution or other legal proceeding shall lie :olgllicuiidt tbe governn;lent o'f bombay or any member of the board (db~r or servant of the existing corporation ijl ~t of ~etl'(l ~q taken by, or in relation to the setting up pf, the mating 1fwt!~ltf"~n or board merely on the ground of any defect ~, or of, the enactment f!r order under which the existing  nftj  ~ board was- constituted a ! \ ~liahment of - co~_ udder sedion - id the tsoml:nly '(hereinafter referred to as "the new corpora-i the existing corporation and board shall be deeme4 tq jii-md and shall cease to funeti~;  ' (i) an ·property and assets vesting in the existing corpora  ion shall vest in the new corporation; "'~') ni>-,:' (c) all rights, liabilities and obligations of the existing cor- poration, whether arising out of any contract or otherwise, shall •• te the rights, liabilities and obligations, n!speetiftly of the new ~tb'poratiol[l;· and jjf) all licences and permits granted to, all contracts made and all instruments executed on behalf of, the existing coror board shall be deemed to have been granted to made 91' ex:~uted on behalf of, the new corporation ud shall 6ct accordingly ~ , :, special provision forrecon· stitution or dissolution of certain  corpora~ hon!' 47"- (1) where on account of the reo:rganisationof states under 37 (: the states reorganisation act, 1956, or any other, enactment relating to reorganisation of stat~s, 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 reorganised in any ~anner whatsoever or that it should be dissolved, the state·govern~ ment may frame a scheme for the -reconstitution, reorganisation or dissolution of the corporation including proposals regarding the formation of new corporatiods, the 'amalgamation of the corporation with any other corponatioa;;·body corporate or a commercial undertaking of another state government, the transfer oftheassets, 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 o'f 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" ,-(i) in relation to the ,bombay state road transport corporation, shall mean the government of the state of maharashtra or of 'gujerat as fonned under the bo~~y reorganisation ,,; 'act, 1960; and ' ,   '  ,],   (ii) in relation 'to the pepsu road transport corporation,: shall mean the goveriudeai of the state of punjab, as fonned " , under theprovisfod8 of the state reorganisation act, 1956_ 37 (2) on receipt of any scheme, the central government may, after consultation with the state governments concemed, approve the scheme with or without modifications and for the purpose of giving effect to the approved scheme, the central govenunent 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 o'f the following matters, namely:-(a) the dissolution of the corporation, notwithstanding any- thing contained in section 39; ,  (b) the reconstitution or reorganisation, in any manner whatsoever, of the corporation :including the establlsl¢lent, where necessary, of more than one corporation in any state, (c) the amalgamation of two or more corpol'ations, or of one corporation with any other body corporate or a commercial undertaking of any other state gov_rnn_e n: (d) the extension of the area for which the corporation is established, or the exclusion of any area therefrom; (e) the transfer, in whole or in part, of the assets, rights and liabilities of the corporation including the transfer of any licences or pennits granted to the corporation, to any other corporation, body corporate or a commetcial undertaking of any other state government, and the terms and conditions of such transfer; (i) the transfer or re-employment of any workmed of the corporation to, or by, any such transferee, and, subject to the pr0-visions of section 111 of the states reorganisation act, 1956, or any other enactment relating to reorganisation of states the terms and conditions of service appucable to such workmen after such transfer or re-employmentj (g) such incidental, consequential and supplemental ma~rs sa may be necessary to giv~, effect to the approved scheme   (g- ~ an orcler ~ _made ~der this section transferring the daaa,ta rights and liabilities of any corporation, then, by virtue of that , such assets, rights and liabilities of the corporation shall vest and be the arsets, rights and liabilities of, the transferee  notwithstanding anything ~ntained in section 47a, it shail be ~ for the government of the state of bombay to frame a scheme tlaal sub-section (1) thereof and forward the same to the central ==-~ve!l1ulnent before the 1st day of may, 1960, and in such a case, the to bombitr conferred on the central government to make an order under state ml8ett(lln (2) thereof may be ej;ercised before that day but no order road shall take effect till that day· transportc orporatioll a bill f~lfther to amend the road transport corporations act, 1950  - (shri gularilaj nanda, minister of how affairs) 