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Union of India - Section

Section 68G in Motor Vehicles Act, 1939

68G. Principles and method of determining compensation.

(1)Where, in exercise of the powers conferred by clause (b) or clause (c) of sub-section (2) of section 68F, 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.
(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,] [Substituted 'Regional Transport Authority' by Act 56 of 1969, section 43, for the words (w.e.f. 2-3-1970).] 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 68F.
(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 68F, 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 for 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 Two hundred month exceeding fifteen days of the rupees unexpired period of the permit:
(b)for part of a month not exceeding fifteen One hundred days of the unexpired period of the rupees permit :
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 68F, 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 AR
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.