¹ [181. Executive Authority in Respect of Railways to Be Exercised By Federal RailwayAuthority

(1) The executive authority of the Federation in respect ofthe regulation and the construction, maintenance and operation of railways shallbe exercised by a Federal Railway Authority (hereinafter referred to as"the Authority"),

(2) The said executive authority extends to the carrying onin connection with any Federal railways of such undertakings as, in the opinionofthe Authority, it is expedient should be carried on in connection therewithandto the making and carrying into effect of arrangements with other personsfor thecarrying on by those persons of such undertakings:

Provided that, as respects their powers under thissub-section, theAuthority shall be subject to any relevant provisions of anyFederal, Provin-cial or existing Indian law, and to the relevant provisions ofthe law of anyFederated State, but nothing in this sub-section shall beconstrued as limitingthe provisions of Part VI of this Act regulating therelations of the Federa-tion with Provinces and States.

(3) Notwithstanding anything in this section, the FederalGovernmentor its officers shall perform in regard to the construction,equipment, andoperation of railways such functions for securing the safety bothof membersof the public and of persons operating the railways, including theholdingof inquiries into the causes of accidents, as in the opinion of theFederalGovernment should be performed by persons independent of the Authorityandof any railway administration.

So much of Part X of this Act as provides that powers inrelation torailway services of the Federation shall be exercised by theAuthority shallnot apply in relation to officers of the Federal Governmentemployed in theperformance of any of the functions mentioned in thissub-section.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [182. Composition, etc., of Railway Authority

(1) Not less than three-sevenths of the members of theAuthority shall be persons appointed by the Governor-General in his discretion,and the Governor-General shall in his discretion appoint a member of theAuthorityto be the President thereof. (2) Subject as aforesaid, the provisionsof the Eighth Schedule to thisAct, as supplemented or amended by any Act of theFederal Legislaturefor the time being in force, shall have effect with respectto the appointment,qualifications and conditions of service of members of theAuthority, andwith respect to the Authority's proceedings, executive staff andliability toincome-tax:

Provided that, except with the previous sanction of theGovernor-General in his discretion, there shall not be introduced into, or movedin, either Chamber of the Federal Legislature any Bill or any amendment forsupplementing or amending the provisions of the said Schedule.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [183. Directions and Principles to be Observed by Railway Authority

(1) The Authority in discharging their functions under thisAct shall act on business principles, due regard beinghad by them to theinterests of agriculture, indus-try, commerce and the general public, andinparticular shall make proper provision for meetingout of their receipts onrevenue account all expenditure to which such receiptsare applicable under theprovisions of this Part of this Act. (2) In the discharge of their saidfunctions the Authority shall beguided by such instructions on questions ofpolicy as may be given to themby the Federal Government.

If any dispute arises under this sub-section between theFederal Government and the Authority as to whether a question is or is not aquestion of policy, the decision of the Governor-General in his discretion shallbe

(3) The provisions of sub-section (1) of this section shallapply in relation to the discharge by the Federal Government of their functionswith respect to railways as they apply in relation to the functions of theAuthority, but nothing in this sub-section shall be construed as limiting thepowers of the Governor-General under the next succeeding sub-section. (4) Theprovisions of this Act relating to the special responsibilities of theGovernor-General, and to his duty as regards certain matters to exercise hisfunctions in his discretion or to exercise his individual judg-ment, shall applyas regards matters entrusted to the Authority as if the executive authority ofthe Federation in regard to those matters were vested in him, and as if thefunctions of the Authority as regards those matters were the functions ofministers, and the Governor-General may issue to the Authority such directionsas he may deem necessary as regards any matter which appears to him to involveany of his special responsibilities, or as regards which he is by or under thisAct required to act in his discretion or to exercise his individual judgment,and the Authority shall give effect to any directions so issued to them.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [184. Conduct of Bbusiness Between Railway Authority and Federal Government

(1) The Governor-General exercising his individual judgment, but after consultation with the Authority, may make rules for the more convenient transaction of business arising out of the relations between the Federal Government and Authority.

(2) The rules shall include provisions requiring the Authority to transmit to the Federal Government all such information with respect to their business as may be specified in the rules, or as the Governor-General may otherwise require to be so transmitted, and in particular provisions requiring the Authority and their chief executive officer to bring to the notice of the Governor-General and matter under consideration by the Authority or by that officer which involves, or appears to them or him likely to involve, any special responsibility of the Governor-General.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.

¹ [185. Acquisition and Sale of Land, Contracts and Working Agreements

(1) Expect in such classes of case as may be specified inregula-tions to be made by the Federal Government, theAuthority shall notacquire or dispose of any land, and, when it is necessary for the Authority toacquire compulsorily any land for the purposes of their functions, the FederalGovernment shall cause that land to be acquired on their behalf and at theirexpense.

(2) Contracts made by or on behalf of the Authority shallbe enfore-able by or against the Authority and not by or against the Federation,and, subject to any provision which may hereafter be made by Act of the FederalLegislature, the Authority may sue and be sued in the like manner and in thelike cases as a company operating a railway may sue and be sued:

Provided that this sub-section does not apply in relationto any contract declared by its terms to be supplemental to a contract madebefore the establishment of the Authority, and any such supplemental contractmay be enforced in any manner in which the principal contract may be enforced.

(3) The Authority may make working agreements with, andcarry out working agreements made with, any Indian State or person owning oroperating any railway in India, or in territories adjacent to India, withrespect to the persons by whom and the terms on which any of the railways withwhich the parties are respectively concerned shall be operated.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [186. Finance of the Railway Authority

(1) The Authority shall establish, maintain and control afund (which shall be known as the "Railway Fund") and all moneysreceived by the Authority, whetheron revenue account or on capital account, inthe discharge of their functions and all moneys provided, whether onrevenueaccount or on capital account, out ol the revenues of the Federationtoenable them to discharge those functions shall be paid into that Fund, and allexpenditure, whether on revenue account or on capital account, requiredfor thedischarge of their functions shall be defrayed out of thatFund:

Provided that nothing in this sub-section shall prevent theAuthority from establishing and maintaining separate provident funds for thebenefit of persons who are or have been employed in connection with railways.

(2) The receipts of the Authority on revenue account in anyfinancialyear shall be applied in-

(a) defraying workingexpenses;

(b) meeting paymentsdue under contracts or agreements to railway undertakings;

(c) paying pensions,and contributions to provident funds;

(d) repaying to therevenues of the Federation so much of any pen-sions and contributions toprovident funds charged by this Act on; thoserevenues as is attributable toservice on railways in India;

(e) making dueprovision for maintenance, renewals, improvementsand depreciation;

(f) making to therevenues of the Federation any payments by way cf interest which they arerequired by this Part of this Act to make; and

(g) defraying otherexpenses properly chargeable against revenue inthat year.

(3) Any surplus on revenue account shown in the accounts ofthe Authority shall be apportioned between the Federation and the Authority inaccordance with a scheme to be prepared, and from time to time reviewed, by theFederal Government, or, until such a scheme has been prepared, in accordancewith the principles which immediately before the establish-ment of the Authorityregulated the application of surpluses in railway accounts, and any sumapportioned to the Federation under this subsection shall be transferredaccordingly and shall form part of the revenues of the Federation.

(4) The Federation may provide any moneys, whether onrevenue account or capital account, for the purposes of the Railway Authority,but, where any moneys are so provided, Ihe provision thereof shall be deemed tobe expenditure and shall accordingly be shown as such in the estimates ofexpenditure laid before Chambers of the Legislature.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [187. Provisions as to Certain Obligations of the Railway Authority

(1) There shall be deemed to be owing from the Authoritytothe Federation such sum as may be agreed or, in default of agreement,determined by the Governor-General in his discretion, to be equivalent totheamount of the moneys provided, whether before or after the passing of thisAct, oat of the revenues of India or of the Federation for capital purposes inconnection with railways in India(exclusive of Burma) and the Authority shallout of their receipts onrevenue account pay to the Federation interest on thatamount at suchrate as may be so agreed or determined, and also make paymentsinreduction of the principal of that amount in accordance with a repaymentschemeso agreed or determined.

For the purposes of this sub-section, where the Secretaryof State in Council has assumed or incurred any obligation in connection withany such railways, he shall be deemed to have provided for the said purposes anamount equal to the capital value of that obligation as shown in the accounts ofthe Government of India immediately before the establishh-ment of the Authority.

Nothing in this sub-section shall be construed aspreventing the Authority from making payments to the Federation in reduction ofthe principal of any such amount as aforesaid out of moneys other than receiptson revenue account.

(2) It shall be an obligation of the Authority to repay tothe Federa-tion any sums defrayed out of the revenues of Federation in respectof any debt, damages, costs, or expenses in, or in connection with, anyproceedings brought or continued by or against the Federation or against theSecretary of State under Part VII of this Act in respect of railways in India.

(3) It shall be an obligation of the Authority to pay toany Province or Indian State such sums as may be equivalent to the expensesincurred by that Province or State in the provision of police required for themaintenance of order on Federal railway premises, and any question which mayarise between the Authority and a Province or State as to the amount of anyexpenses so incurred shall be determined by the Governor-General in hisdiscretion.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [188. Investment of Funds of Railway Authority

Subject to such conditions, if any, as may be prescribed bythe Federal Government, the Authority may from time to time invest any moneys inthe railway fund or any provident fund which are not for the time being requiredto meet expenses properly defrayable out of that fund, and may, subject asaforesaid, from time to time transfer and realise investments made by them.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [189. Special Provisions as to CertainExisting Funds

(1) Nothing in the foregoing provisions of this Part ofthis Act shall be construed as entitling the Authority to require that any moneyswhich immediately before the establishment of the Authority were held by theGovernor-General in Council on account of any railway depreciation fund, reservefund or provident fund shall be transferred to the Authority for investment bythem, but the Authority may from time to time requirethe transfer to themselvesof so much of any such fund as they require todefray expenditure chargeableagainst that fund, and the Federal Government shall credit each such fund withinterest on the untrans ferredbalance thereof at such rate as may be agreed, or,in default of agreement determined by the Governor-General in his discretion.

(2) In this section references to any such fund asaforesaid shall be construed as references to so much of that fund as is notattributable to the railways of Burma.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [190. Audit and Annual Reports

(1) The accounts of the receipts and expenditure of theAuthority shall be audited and certified by, or on behalf of the Auditor-Generalof India.

(2) The Authority shall publish annually a report of theiroperations during the preceding year and a statement of accounts in a formapproved by the Auditor-General.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [191. Railway Rates Committee

The Governor-General may from time to time appoint aRailway Rates Committee to give advice to the Authority in connection with anydispute between personsusing, or desiring to use, a railway and the Authority asto rates or traffic facilities which he may require the Authority torefer to thecommittee.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [192. Bills and Amendments for Regulating Rates and Fares to Require Recommendationof Governor-General

A Bill or amendment making provision for regulating therates or fares to be charged on any railway shall not be introduced or moved ineither chamber of the Federal Legislature except on the recommendation of theGovernor-General.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [193. Obligation of Railway Authority and Federated States to Afford Mutual TrafficFacilities and to Avoid Unfair Discrimination, etc.

(1) It shall be the duty of the Authority and everyFederated State so to exercise their powers in relation to the railways withwhich they are respectively concerned as to afford all reasonable facilities forthe receiving, fonvarding, and delivering of traffic upon and from, thoserailways, including the receiving, forwarding and delivering of through rates,and as to secure that there shall be between one railway system and another nounfair discrimination, by the granting of undue preferences or otherwise, and nounfair or uneconomic competition.

(2) Any complaint by the Authority against a FederatedState or by a Federated State against the Authority on the ground that theprovisions of the preceding sub-section have not been complied with shall bemade to and determined by the Railway Tribunal.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [194. Appeal by State to Railway Tribunal from Certain Directions of Railway Authority

If the Authority, in the exercise of any executive authority of the Federation in relation to interchange of traffic, or maximum or minimum rates and fares, or station or service terminal charges, give any direc-tion to a Federated State, the State may complain that the direction discriminates unfairly against, the railways of the State ,or imposes on the State an obligation to afford facilities which are not in the circumstances reasonable, and any such complaint shall be determined by the Railway Tribunal.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.

¹ [195. Construction and Re-construction of Railways

(1) The Governor-Central acting in his discretion shall make rules requiring the Authority and any Federated State to give notice in such cases as the rules mayprescribe of any proposal for constructing a rail-way or for altering the alignment or gauge of a railway, and to depositplans.

(2) The rules so made shall contain provisions enabling objections to be lodged by the Authority or by a Federated State on the ground that the carrying out of the proposal will result in unfair or uneconomic competition with a Federal railways or a State railway, as the case may be, and, if an objection so lodged is not withdrawn within the prescribed time, the Governor-General shall refer to the Railway Tribunal the question whether the proposal ought to be carried into effect, either without modification or with such modification as the Tribunal may approve, and the proposal shall not be proceeded with save in accordance with the decision of the tribunal.

(3) This section shall not apply in any case where the Governor-General in his discretion certifies that for reasons connected with defence effect should, or should not, be given to a proposal.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.

¹ [196. Railway Tribunal

(1) There shall be a Tribunal (in this Act refered to as"the Railway Tribunal") consisting of a President and two other personsto be selected to act in each case by the Governor-General in his discretionfrom a panel of eight persons appointed by him in his discretion, being personswith railway, administra-tive, or business experience.

(2) The President shall be such one of the Judges of theFederal Court as may be appointed for the purpose by the Governor-General in hisdiscretion after consultation with the Chief Justice of India and shall holdoffice for such period of not less than five years as may be specified in theappointment, and shall be eligible for re-appointment for a further period offive years or any less period:

Provided that, if the President ceases to be a Judge of theFederal Court, he shall thereupon cease to be President of the Tribunal and, ifhe is for any reason temporarily unable to act, the Governor-General in hisdiscretion may after the like consulation appoint another Judge of the FederalCourt to act for the time being in his place.

(3) It shall be the duty of the Railway Tribunal toexercise such jurisdiction as is conferred on it by this Act, and for thatpurpose the Tribunal may make such orders, including interim orders, ordersvarying or discharging a direction or. other of the Authority, orders for thepay-ment of compensation or damages and of costs and orders for the pro-ductionof documents and the attendance of witnesses, as the circumstances of the casemay require, and it shall be the duty of the Authority and of every FederatedState and of every other person or authority affected thereby to give effect toany such order.

(4) An appeal shall lie to the Federal Court from anvdecision of the Railway Tribunal on a question of law, but no appeal shall liefrom the decision of the Federal Court on any such appeal.

(5) The Railway Tribunal or the Federal Court, as the casemay be, may, on application made for the purpose, if satisfied that in view of analteration in the circumstances it is proper so to do, vary or revoke anyprevious order made by it.

(6) The President of the Railway Tribunal may, with theapproval ofthe Governor-General in his discretion, make rules regulating thepracticeand procedure of the Tribunal and the fees to be taken in proceedingsbefore it.

(7) Subject to the provisions of this section relating toappeals to the Federal Court, no Court shall have any jurisdiction with respectto any matter with respect to which the Railway Tribunal has jurisdiction.

(8) There shall be paid out of the Federation to themembers of the Railway Tribunal other than the President such remuneration as maybe determined by the Governor-General in his discretion, and the administrativeexpenses of the Railway Tribunal, including any such remunerationas aforesaid,shall be charged on the revenues of the Federation, and any fees or other moneystaken by the Tribunal shall form part of those revenues.

The Governor-General shall exercise his individual judgmentas to the amount to be included in respect of the administrative expenses of theRailway Tribunal in any estimates of expenditure laid by him before theChambers of the Federal Legislature.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.

¹ [197. Rights of Railway Companies in Respect of Arbitration Under Contracts

(1) Without prejudice to the general provisions of this Act with respect to rights and liabilities under contracts made by or on behalf of the Secretary of State in Council, the provisions of this section shall have effect with respect to any contract so made with a railway company which immediately before the commencement of Part III of this Act was operating a railway in British India.

(2) If a dispute arises under any such contract between the railway company concerned and either the Authority or the Federal Government, and if the matter in dispute is of such a nature that under the contract the company might require or, but for some provision of this Act, might have required, it to be submitted to arbitration, the dispute shall be deemed to have arisen between the company and the Secretary of State, and the provisions of the contract relating to the determination of such a dispute shall have effect with the substitution of the Secretary of State for the Secretary of State in Council.

Any award made in an arbitration under the foregoing provisions this section and any settlement of the dispute agreed to by the Secretary of State with the concurrence of his advisers shall be binding on the Federal Government and the Authority, and any sum which the Secretary of State may become liable or may so agree to pay by of debt, damage or costs, and any costs or expenses incurred by him in connection with the matter, shall be paid out of the revenues of the Federation and shall be charged on those revenues but shall be a debt due to the Federation from the Authority.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.

¹ [198. Railways in Indian States which have not Federated

If and in so far as His Majesty's Representative for the exercise of the functions of the Crown in its relations with Indian States may entrust to the Authority the performance of any functions inrelation to railways in an Indian State which is not a Federal State, the Authority shall undertake the performance of those functions.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.

¹ [199. Official Directors of Indian Railway Companies

Any powers of the Secretary of State in Council with respect to the appointment of directors and deputy direc- tors of Indian railway companies shall be exercised by the Governor-General in his discretion after consultation with the Authority.

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1. Omitted, by the India (Provisional Constitution) Order, 1947.