R RANGASAMY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) On and after 01.01.1972 the State of Tamil Nadu registered several Transport Corporations under the Companies Act to carry on the transport service that was earlier being provided through the State Transport department, and by the private operators whose transport carriages were nationalised under the Tamil Nadu Fleet Operators Stage Carriages (Acquisition) Act, 1971. Four such Corporations were registered in 1972. By the end of the year 1980 there were eight transport Corporations, four more having been brought into existence in the years 1973, 1974, 1975 and 1980. That number had increased to fifteen by the year 1987. Six more were added between 1992 to 1997. These 21 corporations that had been brought into existence, were, by the year 2001 reduced to 18 by amalgamating three of the Corporations. That number is proposed to be further reduced to eight by amalgamating the other ten.

(2.) The common Chairman of all the 18 State Transport Corporations all the shares of which are held by the State Government or it's nominees, is the Secretary to the State Transport Department.

(3.) Under the Articles of Association of all these companies, by Article 116, the Government is given the power to issue directions to the Board of Directors of the Corporations, which directions the Boards are required to implement. The Government may, "....... from time to time issue such directions or instructions as they may think fit in the functions and conduct of the business and affairs of the Company". The Directors are required to ".....duly comply with and give effect to such directions or instructions.