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

135
THE KERALA MOTOR TRANSPORT WORKERS‘
WELFARE FUND ACT, 1985
(Act 21 of 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 not to 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 custom or agreement.
25. Power to make rules.
26. Repeal and Saving.
Schedule.

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136
THE KERALA MOTOR TRANSPORT WORKERS
WELFARE FUND ACT, 1985‘
(Act 21 of 1985)
An Act to provide for the constitution of a Fund to promote the
welfare of motor transport workers in the State of Kerala.
Preamble.——WHEREAS it is expedient to provide for the
constitution of a. Fund to promote the welfare of motor 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, extent and mmencement—(l) This Act may be
called the Kerala Motor Transport Workers' Welfare Fund Act, 1985.
(2) It extends to the whole of the State of Kerala.
(3) It shall be deemed to have come into force on the 27th
day of June, 1985.
2. Definitions.—In this Act, unless the context otherwise
requires,—
(a) “Board" means the Kerala Motor Transport Workers’
Welfare Fund Board constituted under section 6:
(b) "Chief Executive Oflicer” means the Chief Executive
Officer appointed under sub-section (1) of section 7;
(c)“contribution
"
means a contribution payable in respect
of a member under the scheme;
((1) ”employee” means a person who is employed for wages in
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 of such transport vehicle and includes a driver, conductor,
cleaner, station staff, line checking staff, booking clerk, cash clerk,
depot clerk, time keeper, watchman or attendant.
(e) “employer" means, in relation to any motor transport
undertaking, the person who, or the authority which, has the ultimate
control over the affairs of the motor transport undertaking, and
‘ Received the assent of the President on the 12th day of August, 1985
and Published in the Karate. Gazette, Extraordinary No. 681 dated 16th
August 1985.

1‘37
where the said 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” means the Kerala Motor Transport Workers’
Welfare Fund established under the scheme;
(g) “member" means a member of the Fund and ineludes any
person eligible to become a member of the Fund;
(h) “motor transport undertaking” means a motor transport
undertaking engaged in carrying passengers or goods or both by
road for hire or reward and includes a private carrier;
(i) “prescribed” means prescribed by rules made under this
Act;
(j) “scheme” means the scheme framed under this Act;
(k) “wages” means all emoluments which are earned by an
employee while on duty or on leave with wages in accordance with
the terms of the contract of employment and which are paid or
payable in cash to him, but does not include—
(i) the cash value of any food concession;
(ii) overtime allowance, bonus and commission;
(1) all other words and expressions used but not defined in
this Act and 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 of a Fund under this Act for 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 and the scheme.
(2) The Fund shall vest in, and be administered by, the Board.
. (3) Subject to the provisions of this Act, the scheme may pro-
‘v1de for all or any of the matters spec1fied 1n the Schedule.
4. Contnbutions to the Fund—(1) The contribution which
shall be paid by the employer to the Fund shall be eight per cent of
the wages for the time being payable to each of the employees and
employees’ contribution shall be equal to the contribution payable
by the employer in respect of him:
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138
Provided that nothing in this sub-section shall apply to a motor
transport undertaking to which the provisions of the 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 Fund as gratuity
an amount equal to five per cent of the wages for the time being
payable to each of the employees:
Provided that nothing in this sub-section shall apply to a motor
transport undertaking to which the provisions of the Payment of
Gratuity Act, 1972 (Central Act 39 of 1972), apply.
(3) Where the amount of any contribution payable under
this Act involves a fraction of a rupee, such fraction shall be rounded
off to the nearest rupee, half of a 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) shall be laid, as
soon as may be after it is issued, before the Legislative Assembly
while it is in session for a total period of fourteen days which may
be comprised in one session or in two successive sessions, and if,
before the expiry of the session in which it is so laid or the session
immediately following, the Legislative Assembly makes any modi-
fication in the notification or decides that the notification should not
be issued, the notification shall thereafter have efiect only in such
modified form or 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 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 and to supervise or carry out the activities
financed from the Fund. .
(2) The Board shall .be a body corporate by the name
aforesaid, having perpetual succession and a common seal and shall
by the said name sue and be sued.
(3) The Board shall consist of such number of Directors as
may be appointed by the Government and they shall be chosen in
such manner as may be provided for in the scheme:

139
Provided that the Board shall include an equal number of
Directors representing the Government, the employers and the
employees.
, \
(4) One of the Directors of the Board shall be appointed by
the Government to be its Chairman.
(5) The Government shall publish the names of all the
Directors of the Board in the Gazette.
(6) The Board shall administer the Fund in such manner as
may be specified in the scheme.
(7) The Board may, with the previous approval of the Govern~
ment, delegate to Its Chairman or to the Chief Executive Officer or
to any officer appointed under sub-section (1) of section 7 such of its
powers and functions under this Act or the scheme as it may consider
necessary for the efficient administration of the Fund, subject to
such restrictions and conditions, if any, as it may spec1fy:
Provided that no delegation shall be made 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) The Chief Executive Officer and the other officers
appointed under sub-section (1) shall exercise such pow3rs and
discharge such duties as may be prescribed.
(3) The method of recruitment, salary and allowances, dis-
cipline and other conditions of service of the 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 Officer or any other officer appointed under sub-sec—
tion (1) of Section 7 authorised by him in this 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 as he 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 1Procedure, 1908 (Central Act 5 of 1908), in respect of the following
matters, namely:—
(a) enforcing the attendance of any lesson and examining
him on oath;
‘
(b) requiring the discovery and production of documents;
(c) receiving eVidence on aflidaVit;
(d) issuing commissions for the examination of witnesses.
(3) Any inquiry under this section shall be deemed to be a
JudlClal proceeding within the meaning of sections 193 and 228 of
the Indian Penal Code (Central Act 45 of 1860) and for the purposes
of section 196 of that code.
(4) No order determining the amount due from any employer
shall be made under sub-section (1) unless the employer has been
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 the Government in this behalf and the decision of the
Government or of such authority on such appeal shall be final.
9. Provisional assessment of contribution—(1) Every employer
shall, pending determination under section 8 of the amount 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, if the amount 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 of his motor transport undertaking.
(2) The advance contribution for a month shall become
payable on or before the 5th day of the succeeding month. ,
(3) Where the advance contribution is not 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 to the defaulter showing the amount of arrears, and
if the amount is not paid within seven days of the receipt of such
notice, it may be recovered in the same manner as arrears of public
revenue
due
on land.
.
I
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14-1
(4) The amount paid under this section for an year shall be
adjusted against the amount determined under section 8 for that
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, other than an amount payable under sub-
section (1) of section 9, may, if the amount is in arrear, he recovered
together With interest thereon at the rate of nine per cent 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 shall not be liable to
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- the credit of a member in the
Fund at the time of his death and payable to his nominee under
the scheme shall, subject to any deduction authorised by the
scheme, vest in the nominee and shall be free from any debt or
other liability incurred by the deceased or the nominee before the
death of the member.
12. Priority of payment of contributions over-other debts.—
Where any employer is adjudicated insolvent or the employer is a
company and an order 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 64 of the Insolvency Act, 1955 (II of
1956), or under section 530 of the Companies Act, 1956 (Central
Act 1 of 1956), are to 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, as the case may be.
13. Employer not to reduce 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 to whom the scheme applies or the total quantum of
benefits to which the employee is entitled under the terms of his
employment express or implied.
14. Directors of Board etc., to be public servants—Every
Director of the Board, the Chief Executive Officer and every officer
appointed under sub-section (i) of section 7 shall be deemed to be a
public servant within the meaning of section 21 of the Indian Penal
Code (Central Act 45 of 1860).

142
15. Penalties—(1) Whoever, for the purpose of avoiding any
payment to be made by him under this Act or under the
scheme or of enabling any other person to avoid any payment to be
made under this Act or the scheme, knowingly makes or causes to
be made any false statement or false representation, shall be puni-'
shable with imprisonment for a term. which may extend to six
months, or with fine which may extend to one thousand rupees,
or with both.
(2) Whoever contravenes or makes default in complying with
any of the provisions of this Act or of the scheme shall, if no other
penalty is elsewhere provided by or under this Act for such contra-
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) No court inferior to that of 8. Judicial Magistrate of the
First Class shall try any offence punishable under this Act.
(4) No court shall take cognisance of any offence punishable
under this Act except on a 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 in the
payment of the employees‘ share of the contribution to the Fund
after having deducted it from the wages of the employees in
accordance with the provisions of this Act or the scheme, shall be
punishable With imprisonment for a term which may extend to one
year, but which shall not be less than three months, and with fine
which may extend to four thousand rupees:
Provided that the court may, for any adequate and special
reasons to he mentioned in the judgment, impose a sentence of
imprisonment for a. term of less than three months.
(2 Notwithstanding anything contained in the Code of
Cn‘mir. :1 Procedure, 1973 (Central Act 2 of 1974), an offence under
sub-section (1) shall be cognizable.
17. Enhanced punishment for second or subsequent 01727106.—
Whoever, having been convicted by a court of an offence 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 shall not be less than three
months, and with line which may extend to four thousand rupees:
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14-3
Provided that the court may, for any adequate and special
reasons to be mentioned in the judgment, impose a sentence of
imprisonment for a term of less than three months.
18. Offences by companies.—(1) Where an offence under this
Act has been committed by a company, every person who at the time
the offence was committed was in chargelof, and was responsible
to, the company for the conduct of the business 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 liable to any punishment, if he proves that the
offence was committed without his knowledge or that he had
exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1),
where any offence under this Act has been 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 the purposes of this section,—
(a) “company” means any body corporate and includes a
firm or other association of individuals; and
(b) “director” in relation to a firm means a partner in the
firm.
19. Directions by Government—(1) The Government may, after
consultation with the Board, give to the Board general instructions
to be followed by the Board.
(2) In the exercise of' its powers and performance of its
duties under this Act, the Board shall not depart from any general
instructions issued under sub-section (1), except with the
previous permission of the Government.
.
'20. Power to order inquiry—(1) The Government may, at any
time, appoint any person to inquire into the working of the Board
and to submit a report to the Government.
(2) The Board shall give the person so appointed all facilities
for the proper conduct of the inquiry and furnish to him such
documents, accounts and information in the possession of the Board
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 notification in the Gazette, supersede the Board for such period
not exceeding SIX months as may be specified in the notification:
Provided that, before issuing a notification under this sub—sec-
tion, the Government shall give a reasonable opportunity to the Board
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 of a notification under sub-
section (1),—
(a) all the Directors of the Board shall, as from the date of
such publication, vacate their offices as such Directors;
(b) all the powers and duties, which may be exercised or
performed by the Board shall, during the period of supersession,
be exercised or performed by such officer or officers as may be
specified in the notification;
(c) all funds and other properties vested in the Board shall,
during the period of supersossion, vest in the Government.
(3) 0n the expiration of the period of superscssion the
Government shall reconstitute the Board in the manner provided
in section 6.
22. Protection of action taken in good faith—No suit or other
legal proceeding shall lie against any Director of the Board or the
Chief Executive Officer or any other person in 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 ciml courts—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 to be settled, decided or dealt with or to be determined by
the Government or the 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
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145
shall, notwithstanding anything to the contrary contained in any
law for the time being in force or in any deed or other instrument,
stand transferred to, and vest in the Fund established under sec-
tion 3 and shall be credited to the accounts of the employees entitled
thereto in the Fund.
25. Power to make rules—(1) The Government may, by
notification in the Gazette, make rules for the purpose of cariying
into effect the :provisions of this Act.
(2) Every rule made under this Act shall be laid, as soon as
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 in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately
following, the Legislative Assembly makes any modification in the
rule or decides that the rule should not be made, the rule shall
thereafter have effect only in such modified form or 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 that rule.
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/
section 3 (3)]
Matters for which provision‘may be made in the 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 may be
recovered.
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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.

9°
10.
11.
12.
Via.
14.
15.
16.
17.
18.
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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 submission of 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 form in which an 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 fees to be levied for any of the purposes specified in
this schedule.
The conditions under which a member may be permitted to
pay premia on life insurance from the Fund.
The further powers, if any, which may be exercised by the
oflicers appointed under this Act.
The manner in which the Directors of the Board shall he
chosen and appointed.
’
The manner in which any welfare fund vested under
section 24 is 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 which is to be provided for in the scheme or
which may be necessary or proper for the purpose of
implementing the scheme.
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