The Road Transport Corporations Act, 1950

38. Power to supersede a Corporation.

1. If the State Government is of opinion that a Corporation established by that Government is unable to perform, or has persistently made default in the performance of the duties imposed on it by or under the provisions of this Act or has exceeded or abused its powers, the State Government may, with the previous approval of the Central Government, by notification in the Official Gazette, supersede the Corporation for such period as may be specified in the notification:

Provided that before issuing a notification under this sub - section the State Government shall give a reasonable time to the Corporation to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation.

2. Upon the publication of a notification under sub-section (1) superseding a Corporation -

1. all the 2[Directors] of the Corporation shall, as from the date of super session, vacate their offices as such 2[Directors];
2. all the powers and duties which may, by or under the provisions of this Act or of any other law, be exercised or performed by or on behalf of the Corporation shall, during the period of super session, be exercised and performed by such person or persons as the State Government may direct;
3. all property vested in the Corporation shall, during the period of super session, vest in the State Government.

1. Ins. by Act, 28 of 1959, s. 10.2 Subs. by Act 63 of 1982, s.16 (w.e.f.13-11-1982).190

3. On the expiration of the period of super session specified in the notification issued under sub-section (1), the State Government may -

1. extend the period of super session for such further term as it may consider necessary ; or
2. reconstitute the Corporation in the manner provided in section 5.39.Liquidation of a Corporation.

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