- (1.) THIS is a writ application under Article 226 of the Constitution of India by Shri jwala Prasad Sharma, erstwhile Chairman of the Rajasthan State Road Transport Corporation, Jaipur (hereinafter to be referred to as 'the corporation'), which has been superseded by the State of Rajas than by a Notification No. F. (7) (3) (3)Pari/72 dated 20th May, 1972, marked Annexure 5 on the record. Since the petitioner has challenged the validity of the said notification and has prayed that it may be set aside, it would be proper to reproduce this notification in extenso:-" government OF RAJASTHAN home (Group VII) Department No. F. 7 (3) (3) Pari/72, Dated the 20th may, 1972. NOTIFICATION whereas the State Government issued a notice under Section 38 of the road Transport Corporation Act, 1950 (Central Act LXIV of 1950) to the rajasthan State Road Transport Corporation on 18th April, 1972 to show cause why it should not be superseded; and whereas the State Government after considering the explanation and objections of the Corporation is of the opinion that the Corporation is unable to perform and has persistently made default in the performance of the duties imposed on it by or under the provision of the road Transport Corporations Act and has further abused its powers. Now, therefore, in exercise of the powers conferred upon it under Subsection (1) of Section 38 of the Road Transport Corporations Act, 1950 (Central Act LXIV of 1950) the State Government with the approval of the Central Government, hereby supersedes the Rajasthan State Road transport Corporation for a period of six months. By Order of Governor sd/- Ram Singh commissioner for Home Affairs, and Secretary to Government. "
(2.) IN exercise of its powers under Section 3 of the Road Transport Corporations act, 1950 (Act No. LXIV of 1950) the Government of Rajasthan established a Road transport Corporation some time in the year 1964. The petitioner was appointed its Chairman Vide Notification dated 11-12-1967 Annexure 1, reproduced below:- "government OF RAJASTHAN home (B-I) Department. NOTIFICATION No. F. 12 (3) (45 ). Home/b/67, Dated 11- 12-1967. In exercise of the powers conferred by Sub-section (1) of Section 5 of the Road Transport Corporations Act, 1950 (Central Act 64 of 1950) read with Rules 3 (1) (a) and 5 (1) of the Rajasthan Road Transport corporation Rules, 1964, and in supersession of this Department notification No. F. 12 (5) (125)HR/gr. /66, dated the September 5, 1966, the State Government hereby appoints Shri Jwala Parsad Ex-Member of the Rajasthan Legislative Assembly as the Chairman of the Rajasthan state Road Transport Corporation, Jaipur Vice Shri Sher Singh on the following terms from the date Shri Jwala Prasad takes over the charge:--1. Honorarium Rs. 1000/- per month 2. Such free furnished house, telephone, peon and other facilities as admissible to a Dy. Minister of the State government. By Order sd/- V. D. Sharma secretaiy to the Government. " By another Notification dated 29-3-71 (Annexure 2) the petitioner was again appointed as Chairman for a period of three years with effect from 13-124970. Besides the chairman, the Corporation was constituted by 5 Official members of whom three were nominated by the State government and two by Central Government, There were also three non-official members being the representatives of industry/agriculture/ Labour or commerce who were appointed by the State Government. Thus the Corporation was constituted by nine members in all, including the Chairman as required by Rule 3 of the Rajasthan State Road Transport corporation Rules, 1964, made by the State Government in exercise of the powers conferred by Section 44 of the Act. They were: 1. Jwala Prasad (petitioner)--Chairman Official members nominated by the State Government. 2. Home Commissioner, Rajasthan. 3. Finance Commissioner, Rajasthan. 4. General Manager of the Corporation. Official Members nominated by the Central government. 5. Dy. Chief Accounts Officer, Western Railway, bombay. 6. Marketing Officer, W. Rly, Bombay Non-official members appointed by the State Government. 7. Shri Raghunath Das Banger. 8. Raja Dhiraj Shri Hemendar Singh, M. P. 9. Shri Hazari Lal Sharma.
(3.) THE petitioner's case is that during his tenure of office as chairman the Corporation greatly improved its financial position and working, yet by a notice dated 18-4-72 the government of Rajasthan called upon the Corporation to show cause why it should not be superseded. The notice Annex. 3 runs as follows:- " government OF RAJASTHAN home (Gr. VII) Department no. F. 7. (3) (3) Pari/72, Dated 18-4-72 notice whereas the State Government, on grounds specified in the annexure hereto, is of opinion that the Rajasthan State Road transport Corporation is unable to perform and has persistentlly made default in the performance of the duties imposed on it by or under the Road Transport Corporations act, 1950 (Central Act LXIV of 1950) and further has abused its powers: and whereas the State Government, on the basis of these grounds, proposes to supersede the said Corporation for a period of six months. The State Government, therefore, hereby requires the rajasthan State Road Transport Corporation to show cause within 7 days from the date of receipt of this notice why it should not be superseded. Notice issued on this the 18th day of April, 1972. By Order of Governor sd/- R. S. Kumat deputy Secretary to Government. ";