The Motor Vehicles Act, 1988
105.
Principles and method of determining compensation and payment thereof.
- 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 thereof are modified, there shall be
paid by the State transport undertaking 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.
-
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.
- 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.
- 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:--
- for
every complete month or part of a month exceeding fifteen days of
the unexpired period of the permit Two hundred rupees;
- for part
of a month not exceeding fifteen days of the unexpired period of the
permit One hundred rupees:
Provided that
the amount of compensation shall, in no case, be less than four hundred rupees.
- 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 are 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:--
Explanation.--In this formula,--
- "Y"
means the length or area by which the route or area covered by the permit is
curtailed;
- "A"
means the amount computed in accordance with sub-section (4);
- "R"
means the total length of the route or the total area covered by the
permit.
- 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 said
period of one month, it shall pay interest at the rate of seven per cent.
per annum from the date on which it falls due.
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