Page 102 - The Motor Vehicles Act, 1988

88 THE MOTOR VEHICLES ACT, 1988 SECTION 106

(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 exceeding fifteen days of the
unexpired period of the permit; two hundred rupees;
(b) 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.
(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 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:—
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 sub-section (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 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.
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