Motor Vehicles Act, 1988
(1) Where, in exercise of the powers conferred by clause (b) or clause (c) of sub-section (2) of section 103, any existing permit is cancelled or the terms there of are modified, there shall be paid by the state transport under taking to the holder of the permit, compensation, the amount of which shall be determined in accordance with the provisions of sub-section(4) or sub-section(5), as the case may be. (2) Notwithstanding anything contained in sub-section (1), no compensation shall be payable on account of the cancellation of any existing permit or any modification of the terms thereof, when a permit for an alternative route or area in lieu thereof has been offered by the State Transport Authority or the Regional Transport Authority, as the case may be and accepted by the holder of the permit. (3) For the removal of doubts, it is hereby declared that no compensation shall be payable on account of the refusal to renew a permit under clause (a) of sub-section (2) of section 103. (4) Where, in exercise of the powers conferred by clause (b) or sub-clause (i) or sub-clause (ii) of clause (c) of sub-section (2) of section 103, any existing permit is cancelled or the terms thereof are modified so as to prevent the holder of the permit from using any vehicle authorised to be used thereunder for the full period from which the permit, would otherwise have been effective, the compensation payable to the holder of the permit for each vehicle affected by such cancellation or modification shall be computed as follows :- (a) for every complete month or part of a month Two hundred exceeding fifteen days of the unexpired period rupees ; of the permit (b) for part of a month not exceeding fifteen days One hundred of the unexpired period of the permit. rupees. Provided that the amount of compensation shall, in no case, be less than four hundred rupees. (5) Where, in exercise of the powers conferred by sub-clause (iii) of clause (c) of sub-section (2) of section 103, the terms of an existing permit re modified so as to curtail the area or route of any vehicle authorised to be used thereunder, the compensation payable to the holder of the permit on account of such curtailment shall be an amount computed in accordance with the following formula, namely :- Y x A R Explanation. - In this formula - (i) “Y” means the length or area by which the route or area covered by the permit is curtailed ; (ii) “A” means the amount computed in accordance with subsection (4); (iii) “R” means the total length of the route or the total area covered by the permit. (6) The amount of compensation payable under this section shall be paid by the State Transport undertaking to the person or persons entitled thereto within one month from the date on which the cancellation or modification of the permit becomes effective : Provided that where the State transport undertaking fails to make the payment within the s aid period of one month, it shall pay interest at the rate of seven percent. Per annum from the date on which it fails due. Corresponding Law. - Sub-section (1) to (5) of section 105 correspond to section 68-G, whereas sub-section (6) of section 105 corresponds of section 68 H of the Motor Vehicles Act, 1939. Objects and Reasons. - Clause 105 sets out the principles and methods for determining compensation and payment thereof where a private operator is affected in pursuance of the giving effect to an approved scheme. 106, Disposal of article found in vehicles. - Where any article found in any transport vehicle operated by the State transport undertaking is not claimed by its owner within the prescribed period, the State transport undertaking may sell the article in the prescribed manner and the sale proceeds thereof, after deducting the costs incidental to sale, shall be paid to the owner on demand. Corresponding Law. - Section 106 corresponds to section 68-HH of the Motor Vehicles Act, 1939. Objects and Reasons. - Clause 106 speaks of the procedure in the disposal of articles found unclaimed in the vehicle owned by State Transport Undertaking.