The Tamil Nadu State Carriages and Contract Carriages (Acquisition) Act, 1973

 
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The Tamil Nadu Stage Carriages and Contract Carriages (Acquisition) Act, 
1973 
 
Act 12 of 1973 
 
 
 
 
 
 
 
 
Keyword(s): 
Administrator, Arbitrator, Contract Carriage, Contract Carriage Operator, 
Motor Vehicle Act, State Carriage, State Carriage Operator 
 
Stage Carriages and Contract [I973 : T.N. Aet la 
Carriages (Acquisition) 
THE TAMFL NADU STAGE CARNAGES AND CONTRACT 
CARRIAGES (ACQUlSIETEON) ACT, 1973. 
ARRANGEMENT OF SECTIONS. 
Short title, extent, application and commencement. 
Declaration as to the policy of the State. 
Definitions. 
Vesting of stage carriages, contract caiiages, etc., in the Govern- 
ment. 
Duty of stage carriage or contract carriage operator to furnish 
particulars. 
Principles and method of determining the amount for the 
acquired property. 
Notice of determination of amount under section 6 to be given 
to all persons interested. 
Claims for the amount. 
Amount to be substituted security i h certain cases. 
Amount liable to deduction in certain cases. 
Manner of payment of amount for the acquired property. 
Appeals from awards in respect of amount. 
Arbitrator and authorised officer to have certain powers of 
civil court. 1 
I 14 Bar of avplications for fresh permit or for renewal of the 
existing permit for running any stage carriage or contract 
carriage. 
15 Transfer of stage carriage or contract carriage on or after the 14th January 1973 and before the notified date prohibited. 
I 16 Grant of temporary permit to operator. 
I 17 Transfers in contravention of section 15 to be void. 
I 18 Appointment of Administrators. 1 
1 19 Appointment of Authorised officers4 
20 Transfer of acquired property to corporation or company I 
or the State Transport Department of the Government and 
provisions for existing staff. 
I 
-. 
1973 : T.N. Act 121 Stage Carriages and Contract 231 
Carriages (Acquisition) 
Government or the corporation or company owned by tle 
Government or department to which the acquired property 
is transferred to have exclusive privilege of running any stags 
carriage or contract carriage. 
Transfer of stage carriage or contract carriage among the 
corporation or company or State Transport Department of 
the Government. 
Power to obtain information. 
Power to enter and inspect. 
Service of orders and notices. 
Exemptions. 
Protection of action taken in good faith. 
Bar of jurisdiction of civil courts. 
Penalty for offences. 
Certain persons to be public servants. 
Act to override other laws, etc. 
Power to make rules. 
Repeal of Tamil Nadu Ordinanca 1 of 1973. 
THE FIRST SCHEDULE. 
THE SECOND SCHEDULE. 
232 Stage Carriages and Contract [I973 : T.N, Act 12 
Carriages (Acquisition) 
TAMIL NADU ACT NO. 12 OF 1973.1 
THE TAMIL NADU STAGE CARRIAGES AND 
CONTRACT CARRIAGES (ACQUISITION) ACT, 1973. 
[Received the assent of the President on the 14th March 
1973, first published in the Tamil Nadu Government 
Gazette Extraordinary on the 14th March 1973 
(Panguni 1,Parithapi (2004-Thiruvalluvar Aandu)).] 
An Act to provide for the acquisition of stage carriages and 
contract carriages andfor certain other matters connected 
therewith in the State of Tamil Nadu. 
WHEREAS under clauses (b) and (c) of Article 39 of the 
Constitution of 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 result in 
the concentration of wealth and means of production to 
the common detriment ; 
AND WHEREAS for that purpose it is expedient to nationalist 
the transport of passengers by road in this State ; 
AND WHEREAS it is necessary in the public interest to 
acquire all passenger transport divisions of all the stap 
carriage operators and the contract carriage operators in a 
phased programme within a period of five years ; 
AND WHEREAS with a view to achieve the above purpose 
it is considered expedient to start with the acquisition of 
the passenger transport divisions in the revenue districts 
of this State wherein comparatively fewer number of stap 
carriages are operating ; 
I 
BE it enacted by the Legislaturelof the State of Tamil 
Nadu in the Twenty-fourth Year of the Republic of India 
as follows :- 
sort title. 1. (I) This Act may be called the Tamil Nadu Stage 
extent, Carriages and Contract Carriages (Acquisition) Act, 1973. application 
(2) It extends to the whole of the State of Tamil 
Nadu. 
'For Statement of Objects and Reasons, see Tamil Nadu 
Government Gazette Extraordinary, dated the 9th February 1973, 
Part IV-Section 3, pages 24-25. 
1973 : T.N-Act l2.l Stage Carriages and 23 3 
Contract Carffages (Acqui~ttion) 
(3) It shall apply to all stage carriages and contract 
carriages operating in this State on the 14th January 1973. 
(4) (a) This section and sections 14, 15, 16 and 17 
shall, be deemed to have come into force in the whole of 
this State on the 14th January 1973. 
(b) The rest of this Act shall,- 
(i) in relation to its application to the contract 
carriages, come into force in the whole of this State on 
such date as the Government may, by notification, appoint; 
(ii) in relation to its application to the stage 
carriages in the Nilgiris district, be deemed to have come 
into force on the 14th January 1973 ; and 
(iii) in relation to its application to the stage 
carriages in any other district in this State, come into force 
on such date as the Government may, by notification, 
appoint, and different dates may be appointed for different 
districts in this State and for different provisions of this 
Act. 
2. (1) It is hereby declared that this Act is for giving ~~l~ration 
effect to the policy of the State towards securing the prin- as to the 
ciples specified in clauses (b) and (c) of Article 39 of the policy of tk' 
Constitution and the acquisition therefor of the stage 
carriages and contract carriages and other property referred 
to in section 4. 
Explarzation.-In this sub-section, " State " has the 
same meaning as in Article 12 of the Constitution. 
(2) (a) The acquisition of stage carriages shall 
commence with the district wherein comparatively fewer 
number of stage carriages are operating and such acquisi- 
tion shall thereafter be made in the other districts in the 
order specified in the First Schedule within a period of five 
years. 
(b) Clause (a) shall not be enforceable by any 
Court. 
3. In this Act, unless the coatext otherwise requires,-  ti^* 
(a) " acquired property " means the stage carriages 
or the contract carriages and other property vesting in the 
Government under section 4 ; 
23 4 Stage Carriages and 11973 : T.N. Act 12 
Contract Carriages (Acquisition) 
(b) " administrator " means an administrator 
appointed under section 18 ; 
(c) " amount " means the amount payable under 
this Act for the acquisition of the acquired property ; 
(d) " arbitrator " means an arbitrator appointed 
under section 6 ; 
1 
(e) " authorised officer " means an authorised 
officer appointed under section 19 ; 
(f) '' award " means any award of an arbitrator 
made under section 6; 
1 I 
(g) " contract carriage " shall have the same meaning 
as in clause (3) of section 2 of the Motor Vehicles Act and 
includes - I (i) any movable property ancillary or incidental 
to the maintenance and control of such contract carriage; 
and 
(ii) any right in or over such contract carriage or 
movable property ; 
I 
but does not include a motor cab of a tourist vehicle as 
defined in the Motor Vehicles Act; 
(h) " contract carriage operator " means an operator 
holding one or more contract carriage permits ; 
(i) " district " means the revenue district ; 
(.i) " Government " means the State Governmentj 
(k) " Motor Vehicles Act " means the Motor 
Vehicles Act, 1939 (Central Act IV of 1939) ; 
I (1) " notified date " in respect of any stage carriage 
operator or contract carriage operator means the date 
specified in the notification issued under sub-section (1) 
of section 4 in respect of such stage carriage operator or 
contract carriage operator. as the case may be ; 
(in) " operator " means any person whose name is 
entered in the stage carriage permit or contract carriage 
permit as the holder thereof; 
I 
1973 : T.N.Act 121 Stage Carriages and Contract 235 
Carriages (Acquisition) 
(n) " permit " means the permit granted under the 
Motor Vehicles Act authorising the use of a vehicle as a 
stage carriage or a contract carriage in any part of the 
State ; 
(0) " person interested " in relation to any acquired 
property includes the stage carriage operator or the con- 
tract carriage operator and any secured creditor who has a 
charge, lien or any interest in the acquired property and 
any other person who is affected by the vesting of the 
acquired property and claiming, or entitled to claim, 
an interest in the amount ; 
(p) " revenue district " means any area which for 
the purposes of revenue administration, is under the charge 
of a District Collector ; 
(q) " stage carriage " shall have the same meaning 
as in clause (29) of section 2 of the Motor Vehicles Act 
and includes- 
(i) any movable property ancillary or incidental 
to the maintenance and control of such stage carriage ; 
(ii) any right in or over such stage carriage or 
movable property ; and 
(iii) any reserve vehicles or vehicles run on tem- 
porary permits ; 
(r) " stage carriage operator " means an operator 
holding one or more stage carriage permits ; 
(s) words and expressions used herein and not 
defined but defined in the Motor Vehicles Act shall have 
the meanings respectively assigned to them in that Act. 
4. (1) On and from such date as may be specified by Vesting of 
the Government in this behalf by notification in respect ",'~~~~iages~ 
of any stage carriage operator or contract carriage operator, carriages, 
every stage carriage or contract carriage owned or operated etc., in the 
by such stage carriage operator or contract carriage Government. 
operator along with the permit shall vest in the Government 
absolutely free from all encumbrances and such stage 
carriage or contract carriage which vests in the Govern- 
ment shall, by force of such vesting, be freed and dis- 
charged from any trust, obligation, mortgage, charge, 
lien, hire-purchase agreement or otherwise and all other 
236 Stage Carriages and [1973 : T.N. Act 12 
Contract Carriages (Acquisition) 
encumbrances or transactions affecting such stage carriage 
or contract carriage ; and any attachment, injunction 
or decree or order of any court restricting the use of such 
stage carriage or contract carriage in any manner shall 
be deemed to have been withdrawn ; and any person 
interested shall have no claim to or in relation to such 
stage carriage or contract carriage, except a claim to the 
amount payable in respect of such stage carriage or con- 
tract carriage under this Act. 
(2) Upon the issue of a notification under sub- 
section (1) in respect of any such operator- 
(i) all rights, title and interest of the stage carriage 
operator or the contract carriage operator, as the case 
may be, in or over such lands, buildings, workshops and 
other places and all stores, instruments, machinery, dools, 
plants, apparatus and other equipments predominantly 
used for the maintenance or repair of, or otherwise in 
connection with the service of, stage carriages or contract 
carriages as the Government may specify by order in this 
behalf ; and 
(ii) all books of accounts, registers, records, and 
all other documents of whatever nature relating to the 
stage carriages or contract carriages vested in the Govern- 
ment under sub-section (1) or other property specified by 
the Government under clause (i) ; 
w ! 
shall vest in the Government absolutely and free 
from all encumbrances and such property referred to in 
this sub-section which vests in the Government shall, 
by force of such vesting, be freed and discharged from any 
trust, obligation, mortgage, charge, lien, hire-purchase 
agreement or otherwise and all other encumbrances or 
transactions affecting such property ; and any attach- 
ment, injunction or decree or order of any court restricting 
the use of such property in any manner shall be deemed to 
have been withdrawn ; and any person interested shall 
have no claim to or in relation to such property, except a 
claim to the amount in respect of such property under this 
Act. 
(3) The stage carriages or contract carriages and 
other property vesting in the Government under sub- 
section (1) and sub-section (2) shall, with effect on and 
from the notified date, be deemed to have been acquired 
for a public purpose. 
19% : T.%AC~ IZ~ stage  carriage^ and 239 
Contract Carriages (Acquisition) 
5. (1) Every stage carriage operator or the contract Duty of ~1.p I carriage operator shall, within thirty days from the notified z$ 
date or within such further time as the Government may 
I 
allow in this behalf,- operator to i 
furr+h 
(i) furnish to the Government or any officer pamcJorr* 
authorised by them in this behalf complete particulars 
of all liabilities and obligations incurred on the security 
of the acquired property and subsisting on the notified 
date and also of all agreements and other instruments 
pertaining to the acquired property including agreements, 
dccrees, awards, standing orders and other insrruments 
relating to leave, pension, gratuity, provident fund and 
other terms of servlces of any person referred to in sub- 
section (3) of section 20 in force immediately before the 
notified date and the Government shall afford him all 
reasonable facilities for this purpose ; 
(ii) prepare and hand qver Jo the Government 
or any officer authorised by them In thls behalf the complete 
inventory of the property which vests in the Government 
under this Act ; 
(iii) furnish to the Government or any officer 
authorised by them in this behalf such information and 
particulars as may be required by the Government in 
regard to the documents relating to the property which 
is acquired or is liable to be acquired under this Act. 
(2) The stage carriage operator or contract carriage 
operator shall not destroy any such document as is referred 
to in clauses (i) and (lii) of sub-section (1) but shall hand 
over to the Government or any officer authorised by them 
in this behalf on the notified date all such documents and 
also such other documents as are necessary for ascertaining 
the terms of employment of the persons referred to m sub- 
section (3) of section 20 and for determining the amount 
under this Act. 
6. (1) For the vesting of the acquired property under Principles 
section 4,every person interested shall be entitled to receive ~~~e~~~~g 
such amount as may be determined in the manner herein- *he amount 
after set out as specified in the Second Schedule, that is for the 
to say,- acquired 
propgb. 
(a) where the amount can be fixed by agreement 
it shall be determined in accordance with such agreement; 
238 ,&age Carriages and h973 : T.N. Act 13 
Contract Carriages (Acquisition) 
(b) where no such agreement can be reached, the 
Government shall appoint as arbitrator a person who is, 
or has been, or is qualified for appointment as, a District 
Judge ; 
(c) the Government may, in any particular case, 
nominate a person having expert knowledge as to the 
nature of the acquired property to assist the arbitrator and 
where such nomination is made, the person interested 
may also nominate an assessor for the same purpose ; 
(d) at the commencement of the proceedings 
before the arbitrator, the Government and the person 
interested shall state what in their respective opinion is 
tht amount payable ; 
(e) the arbitrator shall, after hearing the dispute, 
make an award determining the amount which appears 
to him just and reasonable and also specifying the person 
or persons to whom the amount shall be paid ; and 
in making the award he shall have regard to the circum- 
stances of each case and the provisions of the Second 
Schedule so far as it is applicable ; 
(f) where there is any dispute as to the person 
or persons who are entitled to the amount, the arbitrator 
shall decide such dispute and if the arbitrator finds that 
more persons than one are entitled to the amount, he shall 
apportion the amount amongst such persons ; 
(g) nothing in the Arbitration Act, 1940 (Central 
Act X of 1940), shall apply to arbitrations under this 
section. 
(2) Every award made by the arbitrator under 
clause (e) of sub-section (1) shall also state the amount 
of costs incurred in the proceedings before him and by 
what persons and in what proportions such amount is to 
be paid. 
I 
Notice deter- 7. Reasonable notice in respect of the amount deter- mation of 
under mined under section 6 shall be given to all the persons 
6 to be interested. 
given to all per- 
sons interested. 
8. (1) Any person interested claiming any amount Claims for determined under sec~ion 6 may within sixty days from 
the date of receipt of any nctice givcn under section 7 or 
within such further time not exceed!ng thirty days as the 
auihorised officer may in hls discretion allow, prefer the 
claim before the authorised officer in such form and 
containing such particulars as may be prescribed. 
iW$ : T.N. Act 121 Stage Carriages and Contract 239 
Carriages (Acquisition) 
(2) The authorised officer shall forward the claimmade 
under sub-section (1) to the Government for the payment 
ofthe amount to the person interested in the manner speci- 
fied under section 11. 
9. Any debt, mortgage, charge or other encumbrance or Amount to 
lien, trust or similar obligation or any attachment, dccree be substi- 
or order of any court attaching to the acquired property tuted 
shall attach to the amount in substitution for the acquired zsky in 
property. cases. 
10. (1) The Employees' Provident Fund Commissioner Amount 
or the Employees' State Insurance Corporation may send to liable to 
deduction theadminist;ator or the arbitrator a certificate in respect of 
either the employer's contribution or the employees' cortri- cases. 
bution realised bj the employer or any other duesrecovera- 
ble from the employer under the Employees' Provident 
Funds and Family Pendon Fund Act, 1952 (Central Act 
XIX of 1952) or the Employees' State Insurance Act, 1948 
(Central Act XXXIV of 1948), as the case may be, in respect 
of any person referred to in sub-section (3) of section 20, 
that the employer may have failed to pay in accordance 
with either ofthose Acts. 
(2) (a) Any person referred to in sub-section (3) of 
section 20 may prefer before the arbitrator any claim 
relating to any salary, wages, leave salary, bonus,pension, 
gratuity, provident fund, or other payment due to him or 
th proportionate sum thereof in respect of any service 
rendered by him in connection with the acquired 
property. 
(b) Where under any law, award, agreement, cont- 
ract of service or otherwise, th:. salary, wages, leave salary, 
bonus, penrion, gratuity, provldent fund, security deposit 
collected from employees or other payment referred to in 
clause (a) becomes payable to the person mentioned in that 
clause after a specified peliod of service rendered by such 
person in connection with the acquired property and where 
the acquired propcrty vests in the Government under 
sub-section (1) of section 4 before the expiry of such 
specified period, the stage carriage operator or the con. 
tract carriage operator, as the case may be, shall be liable 
to pay in respect of such salary, wages, leave salary, 
bonus, pension, gratuity, provident fund, security deposit 
or other payment, a sum equal to the sum which bears to 
the full salary, wages, leave salary, bonus, pension,gratuity, 
240 Stage earrfagts and Contract f i*3 : ?.&. Ad i3 
Carriages (Acquisition) 
provident fund, security deposit or other payment payable 
after the expiry of the sa.id specified period, the same 
proportion as the period up to the notified date b:ars to 
the whole c f the said specified period. 
(3) Subject to the provisions cf sub-section (4), the 
Government shall, after the claims of secured creditors are 
satisfied, be entitled tc deduct from the amount payable to 
the stage carriage operator or contract carriage cperator 
a sum equal to the sums required to disoharge the 
liabiliti: s referred to in sub-sections (1) and (2) 
or obligation of whatever kind (including liabi- 
lity in respect of prow dent fund or superannuation fund or 
any other fund subsisting with the stage carriage operator 
or the contract carriage opcrator on the notified date) in 
relation to persons who have become the employees of 
the corporation or company or the State Transport Depart- 
ment of the Government under sub-section (3) of section 
20. 
(4) The claims made undzr sub-seation (1) or sub- 
section (2)and any dispute regarding the sumto be deduct- 
ed under sub-section (3) shall be decided by the arbitrator 
who shall follow such procedure as may bs prescrib~d. 
Manner of 11. (1) The amount determined under section 6 shall, 
payment of after the deduction, if any, made under this Act, be given 
amount by the G,vernment to tk person interested, for the 
acq;Ged (a) ia cash in one lump sum, where the amount does 
not exceed 10,000 rupees, and 
(6) in any othcr case, at his option, either,- 
(i) in cash (to be paid by cheque drawn on the 
Reserve Bank) in three equal annual instalments, the 
amount of each instalment carryinginterest at tbe rate of 
six per cent per annum from the notified date, or 
(ii) in saleable or otherwise transferable promis- 
sory notes or stock certificates of the Government issued 
and repayable at par, and maturing at the end of- 
(A) ten years from the notified date and carry- 
ing interest from such date at the rate of six and a half per 
cent per annum; or 
(B) thirtj ycars from th: notified date and 
carrying interest from such date at the rate of seven a& 
half per cent pzr annum ; or 
I 
9973 : T.N. Act 121 Stage Carriages and Contract 242' 
Carriages (Acquisition) 
(iii) partly in casb (to be paid by cheque dram 
on the Reserve Bank) and partlyin such number of securi. 
ties specified in item (A)oritem (B)or botb, of sub-clause 
(ii) as may be required by the person interested ; or 
(iv) partly in such numb:r of securities specified 
in item (A) of sub-dause (ii) and partly in such number of 
securities specifitd initem (B) ofthat sub-clause, as may be 
required by the person interested. 
(2) The first of the three equal annual instalments 
referred to in sub-clause (i) of clause (b) of sub-section (1) 
shall be paid, and the securities referred to in sub- 
clause (ii) of that clause shall be issued, within sixty days 
from the date of receipt by the Government of the option 
referred to in that clause, cr wher.: no such option has been 
exercised, from the latest date before which such option 
ought to have been exercised. 
(3) The option referred to in clause (b) of sub-section 
(1) shall be exercised by the person interested before the 
expiry of a period of th~ee months frcm the notified date 
(or within such further time, not exceeding three months, 
as the Government may, on the application of the person 
interested, allcw) and the option so exercised shall be final 
and shall not b; altered or rescinded after it has been 
exercised . 
(4) Any person interested who omits or fails to exercise 
the option referred to in clause (b) of sub-sect ion (I), within 
the time specified in sub-section (3) shall be deemed to have 
opted for payment in securities specified in item (A) of sub- 
clause (i i) of that clause. 
(5) Where the amount has been fixed by agreement, it 
shall be paid in accordance with the terms of the agreement. 
12. Any person aggrieved by an award may, within thirty AWL 
days from the date of such award, prefer an appeal to the ~~~~~ 
High Court : amount 
Provided that the High Court may eniertain the appeal 
after the expiry of the said pericd c?f thirty days, if it is 
szt isficd that the appellant was prevented by sufficient cause 
from filing the appeal in time. 
125-10-16 
242 Stage Carriages and Contr b ct [I973 : T.N. Act 12 
Carriages (Acquisition) 
Arbitrator and 13. The arbitrato~ while holding arbitration prcceedings 
authorised under this Act, and the authorised officer wide deciding a officer hrvz dispute under section 19, shall have ali thc powels of a certain powk rs 
of civil court, while trying a suit, under the Ccde of Civil 
Procedure, 1908 (Central Act V of 1908), in respect of 
the following matters, namely :- 
(a) summoning and enforcing the attendance of any 
person and examining him on oath ; 
(b) requiring the discov~ry and prcduction of any 
document or other material object which is producible 
as evidence ; I 
(c) reception of evidence on affidavits ; 
(d) requisiti~ning any public reccrd or a copy thereof 
from any coult or office ; I 
(e) issuing commissions fo~ tde examination of wit- 
n&sses or documents. 
Bar of applic' - 14. Except as otherwise provided in this Act, and with a 
tions for fresh view to facilitate the acquisition of the stage ca~rjages or 
Permit or for contract ca~riages within the pericd specified in section 2 
the no person shall on or after the 14th Janua~y 1973 apply for existing permit for running ;ny any new permit or fcr renewal ~f the existing permit 
stag: c rriag: for the running of any stage carriage or contract carriage 
or contrcct in this State. The auth~rity or officer empowered to carriage. grant permits under the Motc~ Vehicles Act, shall, not- 
withstanding anything contained therein, grant such permit 
to the corporation or company owned by the Government ; 
or the State Transport Department of the Government, as 
the case may be, and to no other. 
Every application for the grant of a new permit or for the 
renewal of an existing permit and all appeals or revisions 
arising there from or  elating thereto made or preferred 
before the 14th January 1973 and pending in any Court or 
with'aay o%cer. authority or Tribunal constituted under 
the Motor Vehicles Act on the 14th January 1973 shall 
abate. 
Transfer of 15. No person shall on or after the 14th January 1973 
stage carricg. and before the notified date, transfer by way of sale or gift 
or contrzct any stage czrriage or contract carriage liable to be acqui- 
amage on or red under this Act except in favour of the Government or 
itfter the 14th corporation or company owned by the Government or . 
I 
* 
1973': T.N. Act 121 Stage Carriages and Contract 2'43 
Casriog es (Acquisition) 
the State Transport Department oithe Government. Where J,,,,,~ 1973 any transfer is made, by way of sale in favour of the and before the 
Government ox corporation or company owned by the notified date 
Government or the State Transport Depa,tment of the Prohibited. 
qove~nment, the price to bc paid shall be calculated in 
accordance with the principles foi determining tte amount 
under this Act for such property liable to be acquired 
under this Act. 
16. Notwithstanding anything contained in this Act or Grant of 
in the Motor Vehicles Act or in any other law for the time temporary 
being in force, any stage carriage operator or contract permit to 
carriage operator running any stage carriage or contract OPerLtor. 
carriage in this State shall be entitled to obtain a tempo- 
rary permit under the Motor Vehicles Act in respect of any 
stage carriage or contract carriage liable to be acquired 
under this Act. Such temporary permit shall be for a 
period of four months in the filst instance which may there- 
after be extended for further periods of four months at a 
time until the stage carriage or contract carriage is trans- 
ferred to the corporation or company or the State Trans- 
port Department of the Government referred to in 
section 20 : 
Provided that nothing contained in this section shall 
entitle any stage carriage operator or contract carriage 
operator to obtain any temporary permit in respect of any 
area or route or portion thereof specified in a scheme 
published at any time (whether before, on or after the 
14th January 1973) under section 68-C of the Motor 
Vehicles Act. 
17. Every transfer of any stage carriage or contract Transfers in 
carriage liable to be acquired under this Act in contra- contr~vtntion 
vention of section 15 shall be void. of srction 15 to 
be void. 
18. The Government may appoint such number of Appointment 
officers as may considered necessary as administrators of Administva- 
for arranging the take over of the acquired property and 
to carry out such other duties as may be assigned to them 
by the Government for carrying out the purposes of this 
Act. 
19. (1) The Government may appoint such number of Appointment 
officers as may be considered necessary and possessing such of Authoriscd 
qualifications as may be prescribed as authorised officers Officers. 
for the purposes of this Act. 
195.110-16a 
244 
1 
Stage Carriages and 11973 : T.N. Act 12 
Con'tract Carriages (Acquisition) 
(2) If any dispute arises as to whether any property 
referred to in sub-section (2) of section 4 was on the notified 
date being predominantly used for the maintenance or 
repair of, or otherwise in conneciion with the service of, 
stage carriages or contract carriages, such dispute shall be 
decided by the authorised officer in accordance with 
such procedure as may be prescribed. 
(3) Any person aggrievfd by any decision ofthe autho- 
rised cifficrr under this Act may, within thirty days from 
the date of such decision, prefer an appeal tc the Govern- 
ment : 
Provid.ed that the Governm 1 nt may entertain the 
appeal afrer the expiry of the said periad of thirty days, 
if they are satisfifd that the appellant was prevented by 
sufficient cause from filing the appeal in time. 
Transfer of 20. (1) The Government sh2ll imm~diately after the 
WlGred vesting cf the a cquircd property under seciion 4 by order 
property transfer the whole of the wid property in favour of corporation ,-, company scch ccrpcratjon or company owned by the Govern- 
or the State ment or State Transport Department of the Govern- 
'lYansPort ment, P s the Government may specify in such order. Department 
ofthe Govern- (2) Where in pursuance of sub-section (1) any stage 
mat and carriage or contract carriage is transferred to any corpo- provisions ration or company ownt d by the Government or the State for existing 
staff. Transport Department of the Government, the permit in 
respect of such stage carriage or contract carriage shall, 
notwithstanding anything contalned in the Motor Vehicles 
Act, be deemed to have been transferred in favour of such 
corporation or company or State Transport Department of 
the Government and such p~rm;t shall be val;d for the unex- 
pired ~ericd thereof. After th: expiry of the seid period, 
such corporation or company o- S:ate Tr -nsoort Dep?rt- 
me nt of the Oovelnment shall be exclusively entitled to 
the renewal of such permit and an app1;cation for such 
renewal msy be made by the corporarion or comp~ny 
or Sate Transport Dcpartmcnt of the Government at 
anytime brfore the expiry ofthe said permit and the period 
spec;ficd in clause (a) of sub-sec'ion (2) of section 58 of 
the Motor Vehicles Act, shall not apply to such application. 
(3) Evcry person who is a workman within the 
mean;ng of th~ Jndusfrial Disputes Act, 1947 (Cent& 
Act XIV of 1947), and has bwn, immediately b, fore the 
14th January 1973, exclusivi ly ellnployed in connection 
w;th the acquired property shall, on and from the notified 
dxte, become an employee of the corporation or comgaq 
l&73 : T-N, Act 125 Stage Carriager and 243 
Contract Carriages (Acquisition) 
or the State Transport Department of the Government 
rgferred to in sub-section (1) and shall hold cffice or serv~ce 
ir! such corporation or company or State Transport De- 
partment of the Government on the same. terms and 
conditions and with the same rights to penslon, gratuity 
and other matters as would have been admissible to him 
if the acquired property had not vested in the Government 
and transferred to such corporation or company or State 
Transport Department of the Government and continue 
to do so unless and until his employment in such corpora- 
t ion or company or State Transport Department of the 
Government is terminated or until his remuneration, 
terms or wnditions of employment are duly altered by 
such corporation or company or State Transport Depart- 
ment of the Government; 
Provided that the number of workmen that shall 
become employees of the corporation or company or the 
State Transport DL partment of the Government under 
this wb-s~ction shall not exceed the followrng scale, the 
junior most bang excluded:- 
Scale per vehicle. 
1. Drivers . . . . . . . . 2.75 
2. conductors . . .-. . 2.65 
3: Supervision . . .=. . . 0.125 Line S aff and 
Checking 
Inspector. 
4; Higher Supervision Staff and 0.075 
Managers. 
5. Ministerial and Secretariat Staff 0.8 
6. Technical staff including 2.75 : 
Foreman. 
Provided fbrther that in the case of such persons to 
whom labour laws for the time being in force apply, no 
such te,rm;nation or ahtraticn of renluneraticn, terms 
or qonditions of service shall be mzde except in accordance 
with such laws. 
I -. *%6 Stage Carriages ccnd el473 : T.N. Ad ' 15 
Contract Carriazes (Acquisition) 
(4) If any question arises as to whether any person 
referred to in sub-section (3), was exclusively em- 
ployed in connection tvith the acquired property 
immediately before the 14th January 1973, it shall be 
decided by the authorised officer and an appeal shall lie 
to the Government under sub-section (3) of section 19. 
(5) For the persons who immediately before the 
notified date wcre trustees for any pension, provident 
fund, gratuity or other like fund constituted for the 
persons referred to in sub-section (3), other than trustees 
nominated by or under any law, there shall be substituted 
as trustees, such persons as the Government may by 
+ general or special order specily. 
(6) (a) All sums deducted by the Government 
under sub-section (3) of section 10 shall stand transferred 
to the corporation or company or the State Transport 
Department of the Government referred to in sub- 
section (1). 
(b) Such corporation or company or State 
Transport Department of the Government shall credit 
the sums transferred to the appropriate funds or if any 
part of the sums is payable to the employee directly, 
such part shall be paid to him directly. 
(7) The transfer of an employee to the corpora- 
tion or company or the State Transport Department 
of the Government under sub-section (3) shall not entitle 
any such employee to any compensation and no such 
claim shall be enteriained by any court,tribunal or other 
authority. 
(8) Save as otherwise provided in sub-section (3), 
the services of every person other than the persons 
referred to in sub-section (3) employed in connection 
with the acquired property immediately before the 14th 
January 1973, shall stand terminated on and from the 
notified date and if any such person whose services 
are so terminated, is entitled to any payment by way 
of gratuity or retirement benefit or for any leave not 
availed of, or of any other benefits, such person may 
enforce his claim against his employer under whom he 
was employed in connection with the acquired pro- 
perty immediately before the notified date, but not 
against the Government or the corporation or company 
owned by the Government or the State Transport 
Department of the Government. 
fH3 : T.N. Act 121 Stage Carriages and $47 
Coretract Carriages (Acquisition) 
21. Except to the extent otherwise expressly provi- Gove,,m,,t ,, 
ded in this Act, on and from the notified date, the the corporation 
corporation or company or the State Transport Depar- or comrany 
ment of the Government to which the acquired property owned by the 
is transferred under section 20, shall have the exclusive ~~~~~~~~ y: 
privilege of running such stage carriage or contract which the 
carriage. Such corporation or company or State ecquired . 
Transport Department of the Government shall, not- property 1s 
withstanding anything contained in the Motor Vehicles "ansferred to 
Act, be entitled to the grant or renewal of permits under ~~~~~'u~[ve 
the said Act in respect of any such stage carriage or 2ny contract odrriage to the exclusion of other persons and stage carriage 
any officer or authority under the Motor Vehicles Act or contrsct 
shall not invite any application or entertain any such 
application of other persons, for the grant of permit for 
the running of any stage carriage or contract carriage. 
22. It shall be competent for the corporation or Transfer of 
company or the State Transport Department of the stage carriage 
Government referred to in section 20 to make any trans- or contract 
fer among themselves, of their property by way of sale, ~~~r~~~~~~~: 
exchange, gift or otherwise and the provisions of the or or 
Motor Vehicles Act, relating to transfer of ownership state Transpott 
of motor vehicles shall not apply to such transfer. Department of 
theGovernment . 
23. The Government may with a view to carrying Power toobtain 
out the purposes of this Act by order require .any information. 
person to furnish to such officer as may be specified 
in the order, such information in his possession as 
may be specified relating to any stage carriage or con- 
tract carriage or other property which is acquired or 
is liable to be acquired under this Act. 
i 24. Any officer empowered in this behalf by the power to enter 
Government by general or special order, may enter and in+;pect. 
any premises and inspect the acquired property with a 
view to carrying out the purposes of this Act. 
25. (1) Subject to the provisions of this section, Service of 
and any rules that may be made under this Act, every orders and 
order or notice made or issued under this Act shall,- notices. 
(a) in the case of any order or notice of a genera! 
nature or affecting a class of persons, be published in 
the Tamil Nadu Government Gazette; and 
248 &age Carriages mul [1~lj : TI ~.ht il 
Contract Carriages (Acquisition) 
(b) in the case of any order or notice affecting 
a corporation or firm, be served in the manner provided 
for the service of summons in rule 2 of Order XXIX or 
rule 3 of Order XXX, as the case may be, in the First 
Schedule to the Code of Civil Procedure, 1908 (Central 
Act V of 1908) ; and 
L (c) in the case of any or er or notice affecting 
an individual person (not being a corporation or firm) 
be served on such person- 
(i) by delivering or tendering it to that person, 
Qt 
(ii) if it cannot be so delivered or tendered, 
by delivering or tendering it to any officer of such person 
or any adult male member of the family of such person, 
or by afEixing 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 
means, 
(iii) by post, 
(2) Where the ownership of'the acquired property 
is in dispute or where the persons interested in the said 
property are not readily traceable and the order or notice 
cannot be served without undue delay, the order or notice 
may be served by publishing it in the Tamil Nadu Govern 
merit Gazette, and where possible, by affixing a copy there- 
of on any conspicuous part of the acquired property or 
the premises where the acquired property was ordinarily 
kept before the date of vesting, 
I I 
Pxmflions. 26. Nothing contained in this Act shall apply to,- 
(a) any stage carriage or contract carriage owned, 
held or operated by,- 
(i) the Central Oovernment ; 
(ii) any State Government ; 
(iii) any company, or other authority owed or 
ccontrolled by the Central Government or any State Govern- 
ment ; or 
i@ : T$L kt id Stage Carriages and i44 
Contract Carriages (Acquisition) 
(iv) any such institution as may be approved 
by the Government in this behalf; or 
(b) any stage carriage for which permit is issued 
by any officer or authority situate outside the State of 
Tamil Nadu and who or which is not under the control 
of the Government. 
27. (1) No suit, prosecution or other legal proceeding Protection of 
shall lie against any person for anything which is in good action taken in 
faith done or intended to be done in pursuance of this good faith- 
Act or any rule or order made thereunder. 
(2) No suit or other legal proceeding shall lie against 
the Government, the administrator or any other officer 
for any damage caused or likely to be caused by anything 
which is in good faith done or intended to be done in 
pursuance of this Act or any rule or order made thereunder. 
28. Save as otherwise expressly provided in this Act, of jUrisdic- no civil court shall have jurisdiction in respect of any tion civil 
matter which the Government are, or an arbitrator or courts. 
authorised officer is, empowered by or under this Act to 
determine, and no injunction 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. 
29. Whoever contravenes any provision of this Act Penalty for 
or any rule or order made or direction given under this offences., 
Act, or obstructs the lawful exercise of any power con- 
ferred by or under this Act, shall be punishable with fine, 
which may extend to two thousand rupees. 
30. Every arbitrator, administrator, authorised officer Certain P rsop 
and every other oEcer empowered by the Government, :zr:zE+ 
while exercising any power or performing any duty under 
this Act shall be deemed to be a public servant within the 
meaning of section 21 of the Indiaa Penal Code 
(Central Act XLV of 1860). 
31. Save as otherwise provided in this Act, the pro- Act to override 
visions of this Act shall have effect notwithstanding any- other iaws, etc, 
thing inconsistent therewith contained in the Motor Vehicles 
Act or in any other law for the time being in force, 
1, . 
250 Stage ~arrtages and [I973 : T.N. Act 12 
Contract Carriages (Acquisitzon) 
Power to make 32. (1) The Government may make rules for carrying . rules. out the purposes of this Act. 
(2) In particular, and without pbejudice Lo the gene- 
rality of the foregoing power, such ~ules may provide for 
all or any of the followillg matters, namely :- 
(a) the procedure to be followed in arbitration 
proceedings and appeslls undei this Act ; 
(b) the principles to be followed in apportionillg 
the cost of pro( eedings before the arbitrat~r ad an appeal 
under this Act ; 
(c) the manner of service of notices and orders ; 
(d) any other matte1 which has to be, or may be, 
prescribed. I 
(3) All rules made under this A;; shall be published 
in the Tamil Nadu Government Gazette and unless they axe 
expressed to come into force on a particular day,. shall 
come into fcrce c n the day cn which they are so published. 
(4) Every rule made under this Act shall, as soon as 
possible after it is made, be placed on the table of both 
Houses of the Legislature, and if, before the expiry of the 
session in which it is so plaocd or the next session, both 
Houses agree in making any modification in any such rule 
or both Houses agree that the rule should not be made, 
the rule shall thereafter have effect only in such modified 
form 01 be of iio 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 rule. 
Repea

Excerpt shown. Open the full act in Lexace.

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