Kerala Motor Transport workers Welfare fund Board 1985 act 21 & Act 23 ,2005

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                                             ACT 21 OF 1985 

THE KERALA MOTOR TRANSPORT WORKERS WELFARE FUND 

ACT, 1985 

 

 

An Act to provide for the constitution of a Fund to promote the welfare of 

motor transport workers in the State of  Kerala. 

 

Preamble:- WHERE AS it is expedient to provide for the constitution of a 

Fund to promote the welfare of  motor transport workers in the State of 

Kerala. BE to enacted in the Thirty sixth Year of the Republic of India as 

follows:- 

 

1. Short title, extent and commencement:- (1) This act may be called The 

Kerala Motor Transport Workers Welfare Fund Act, 1985 

(2) It extends to whole of the State of Kerala. 

(3)It shall be deemed to have come into force from the 27
th
 day of June, 

1985 

 

2. Definitions:- In this Act, unless the context otherwise requires,- 

(a) “Board” means   The Kerala Motor Transport Workers Welfare Fund 

Board constituted under section 6; 

(b) “Chief Executive Officer” means the Chief Executive Officer 

appointed under sub-section (1) of section (7); 

(c) “contribution” means a contribution payable in respect of a member 

under the scheme; 

(d) “employee” means a person who is employed for wages in a Motor 

Transport undertaking directly or through an agency to work in a 

professional capacity on a transport vehicle or to attend to duties in 

connection with the arrival, departure, loading or unloading of such 

transport vehicle and includes a driver, conductor, cleaner, station staff, 

line checking staff, booking clerk, cash clerk, depot clerk, time keeper, 

watchman, or attendant, 

 

 

 

 

 

 

 

 

 

 

 



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*(e) “employer” means in relation to any motor transport undertaking, 

the registered owner or the person who, or the authority which, has the 

ultimate control over the affairs of the motor transport undertaking, and 

where the said affairs are entrusted to any other person whether called a 

manager, managing director, managing agent, or by any other name, such 

other person; 

(f) “Fund” means the Kerala Motor Transport Workers Welfare Fund 

established under the scheme;  

 (g) “member’ means the member of the Fund and includes any person 

eligible to become a member of the Fund; 

(h) “motor transport undertaking” means a motor transport undertaking 

engaged in carrying passengers or goods or both by road for hire or 

reward and includes a private carrier; 

(i) “prescribed” means prescribed by rules made by this Act; 

*(ia) “quantum” means a fixed amount of welfare fund contribution 

payable to the fund by the employer, employee and self employed person 

as may be specified in the scheme; 

(j) “scheme” means the scheme framed under this Act; 

*(ja) “self employed person” means a person other than an employee 

who is engaged in the profession of a motor transport undertaking by 

actually operating the vehicle and depending mainly on such a motor 

transport undertaking for his lively hood; 

 

*omitted 

(l) all other words and expression used but not defined in this Act and 

defined in the Motor Vehicles Act, 1939 (Central Act 4 of 1939), shall 

have the meanings respectively assigned to them in that Act 

 

3.Motor Transport Workers Welfare Fund;- (1) The Government may by 

notification in the Gazette, frame a scheme to be hold the Kerala Motor 

Transport workers Fund Scheme for the establishment of a Fund under 

this Act for employees and their shall be established, as soon as may be 

after the framing of the scheme, a fund in accordance with the provisions 

of this Act and the scheme. 

 

………………………………………………………………………… 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 



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(2) The fund shall vest in, and be administered by, the Board 

(3) Subject to the provisions of this Act, the scheme may provide for all  

     or any of the matters specified in the Schedule. 

 

4. * Contribution to the Fund;- (1) The contribution payable by 

employee to the fund shall be such quantum of each type of motor 

transport undertaking as may be specified in the scheme. 

 

(2) The contribution payable by the employer and the self employed    

     person shall be such quantum as may be specified in the Scheme. 

 

(3) The quantum under sub-sections (1) and (2) shall be fixed taking  

      into account the average number of man power required for  

       Operating the motor transport undertaking. 

 

(4) The contribution payable by the employer, employee and self  

      Employed person shall be subject to revision from time to time. 

 

Provided that nothing in the section shall apply to a Motor Transport 

undertaking to which the provisions of Employees Provident Funds 

and Miscellaneous Provisions Act, 1952 (Central Act 19 of 1952) or 

the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) apply. 

 

5. Modification of scheme :- (1) The Government may, by notification in 

the Gazette, add to, amend or vary the scheme either prospectively or 

retrospectively  

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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(2) Every notification under sub – section (1) shall be laid, as soon as 

may be after it issued, before the Legislative Assemble while it is in 

session for a total period of fourteen days which may by comprised in 

one session or in two successive sessions, and if, before the expiry of the 

session in which it is so laid or the session immediately following, the 

Legislative Assemble makes any modification in the notification or 

decides that the notification should not be issued, the notification shall 

thereafter have effect only in such modified from or be of no effect, as 

the case may be so however that any such modification or annulment 

shall be without prejudice to the validity of anything previously done 

under that notification. 

 

(6) Constitution of Board :- (1) The Government may, by notification in 

the Gazette, constitute with effect form such date as may be specified in 

such notification a Board to it be called the Kerala Motor Transport 

Workers’ Welfare Fund Board for the administration of the Fund and to 

supervise or carry out activities financed form the Fund. 

(2) The Board shall be a body corporate by the name aforesaid, having 

perpetual succession and a common seal and shall by the said name sue 

and be sued. 

(3) The Board shall consist of such number of Directors as my be 

appointed by the Government and they shall be chosen in such manner as 

may be provided  for in the scheme. 

 Provided  that the Board shall include an equal number of Directors 

representing the Government, the employers and the employees. 

(4) One of the Directors of the Board shall be appointed by the 

Government to be its Chairman. 

(5) The Government shall publish the names of all the Directors of the 

Board in the Gazette. 

(6) The Board shall administer the Fund in such manner as may be 

specified in the scheme. 

 

(7) The Board may, with the previous approval of the Government, 

delegate to its Chairman or to the Chief Executive officer or to any 

officer appointed under sub section (1) of section 7 such or its powers 

and functions under this Act or the scheme  as it may consider, necessary 

for the efficient administration of the Fund, subject to such restriction and 

conditions, if any, as it may specify: 

 

 

 

 



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 Provided that no delegation shall be made under this sub section 

unless all the members present support such delegation; 

(7) Appointment of Officers ;- (1) The Government may appoint a Chief 

Executive Officer and such number of other officers and staff as they 

consider necessary to assist the Board in the discharge of its functions 

and duties under this Act. 

(2) The Chief Executive Officer and the other officers appointed under 

sub section (1) shall exercise such powers and discharge such duties as 

may be prescribed, 

(3) The method of  recruitment, salary and allowances, discipline and 

other conditions of service of the Chief Executive Officer and the other 

officers and staff appointed under sub section (1) shall be such as may be 

prescribed. 

 

 * 8 Determination of amount due :- (1) The Chief Executive officer any 

other officer appointed under sub section (1) of section 7 authorised  by 

hin in this behalf may, by order, determine the amount due under the 

provisions of this Act or of the Scheme form the employer, Employee 

and self employed person and if the amount due is not paid on or before 

the due date, he shall issue a demand notice to the defaulter showing the 

amount of arrears. 

 

(2) Any person aggrieved by the determination of arrears under sub 

section (1) may file a review petition before the authority who had 

determined then arrears, showing detailed facts and reasons for reviewing 

the original determination within fifteen days of receipt of demand 

notice. 

 

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 

 

 

 

 

 



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(3) A review petition filed under sub section (2) shall be disposed of 

by the authority within a period of thirty days from the date of its receipt  

(4) Any person aggrieved by an order under sub section (3) may prefer 

are appeal before the District Labor  Officer of the concerned district and 

it staff be disposed of by him within a period of sixty days form the date 

of its receipt. 

 

 

(5) If the amount of arrears in dispute exceeds rupees one lakh, any 

person aggrieved by an order under sub section (4) may prefer a second 

appeal before the Board and it shall be disposed of within a period of 

sixty days from the date of its receipt. 

 

(6) Every order passed under sub section (4) or sub section (5) as the case 

may be, shall be final. 

(7) No appeal under this section shall be entertained unless fifty per cent 

of the amount in accordance with the order against which the  appeal has 

been preferred is paid; 

 

(8) If the appellate authority in an appeal decides that the amount paid is 

in excess of what is due from the appellant, it may by order, direct for the 

refund of the excess amount. 

 

(9) An officer or authority exercising the power of appeal under sub 

section (5) of section 8 of the Kerala Motor Transport Workers Welfare 

Fund Act 1985, immediately before the commencement of the Kerala 

Motor Transport Workers Welfare Fund (Amendment) Act 2005 shall 

continue to exercise such powers, in respect of the cases pending before 

such officer or authority. 

 

* 8 A Production of receipt of remittance of welfare fund contribution – 

Notwithstanding anything contained in any other law for the time being 

in force every registered owner or person having possession or control of 

a motor vehicle in respect of a motor transport undertaking liable to pay 

contribution ( other than auto rickshaws covered under the provisions of 

the kerala Auto rickshaw workers welfare Fund Scheme 1991) shall, at 

the time of making payment of the tax under the Kerala Motor Vehicles 

Taxation Act 1976 (19 of 1976) produce before the Taxation Officer the 

receipt of remittance of the contribution to the fund due up to the 

preceding month, 

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 



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*9. Remittance of monthly contribution :- (1) Every employer, employee 

and self employed person shall pay the contribution due from him every 

month as provided fro in the scheme. 

 

(2) The monthly contribution shall become payable on or before the 7
th
 

day of the succeeding month. 

 

*10. Mode of recovery of moneys due from the employer employee and 

self employed person – (1) The amount of arrears for which demand 

notice has been issued under sub section (1) of section 8 shall by 

recovered together with interest thereon at the rate of 9 per cent per 

annum in the same manner as an arrear of public revenue due on land. 

  

(2) Not with standing anything contained in any other provisions of  this 

Act or in any other law for the time being in force, where  an employer 

transfers his vehicle before paying any amount due under this Act in 

respect of the vehicle, the liability wherefore accrued before the date of 

the transfer, such amount shall be a charge on the vehicle so transferred. 

 

11. Protection against attachment :- (1) The amount standing to the credit 

of any member in the fund shall not in any way be capable of being 

assigned or charged and shall not be liable to attachment under any 

decree or order of any court in respect of any debt or liability incurred by 

the member , and no receiver appointed under the Insolvency Act 1955 

(II of 1956), Shall be entitled to or have any claim on any such amount. 

(2) Any amount standing to the credit  of a member in the Fund at the 

time of his death and payable to his nominee under the scheme shall, 

subject to any deduction authorized by the scheme, vest in the nominee 

and shall be free from any debt or other liability incurred by the deceased 

or the nominee before the death of the member . 

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 

 



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12. Priority of  payment of contribution of over other debts :- Where any 

employer is adjudicated insolvent or the employer is a company and an 

order for winding up of such company is made, the amount due from the 

employer under this Act or the scheme shall, where the liability therefore 

has accrued before the order for adjudication or winding up is made, be 

deemed to be included among the debts which under section 64 of the 

Insolvency Act, 1955 (II of 1956) or under section 530 of the Companies 

Act 1956 (Central Act 1 of 1956), are to be paid in priority to all other 

debts in the distribution of the property of the insolvent or the assets of 

the company being wound up as the case may be. 

 

*12 A Registration and membership :- Every employee or self employed 

person shall register himself with the Board as a member of the fund 

within six months of commencement of his service in a motor transport 

undertaking and obtain identity card in such manner as may be provide or 

in the scheme, 

 Provided that every employee of self employed person who has bee 

already  registered  as a member of the fund as on the date of 

commencement of the Kerala Motor Transport Workers Welfare Fund 

(Amendment ) Act 2005 shall get himself re- registered with the Board as 

specified in the Scheme. 

 

13. Employer not to  reduce wages etc :- No employer shall by reason 

only of  his liability or the payment of any contribution to the Fund 

reduce whether directly or indirectly, the wages of any employee to 

whom the scheme applies or the total quantum of benefits to which the 

employee is entitled under the terms of his employment express or 

implied 

 

14. Directors of Board etc. to be public servants  :- Every Director of the 

Board, the Chief Executive Officer and every officer appointed under sub 

section (i) of section 7 shall be deemed to be a public servant within the 

meaning of section 21 of the Indian penal code (Central Act 45 of 1860)  

 

*15. Penalties:- (1) Whoever for the purpose of  avoiding any payment to 

be made by him under this Act or under the scheme or of enabling any 

other person to avoid any payment to be made under this Act or the 

scheme knowingly makes are causes to be made by any false statement or  

false fore representation shall be punishable with imprisonment fro a 

term which may extend to six months, or with fine which may extend to 

Five thousand rupees, or with both. 



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(2) Whoever contravenes or makes default in complying with 

any of the provisions of this Act or of the scheme shall if no other penalty 

is else where provided by or under this Act for such contravention or non 

compliance be punishable with imprisonment for a term which may 

extend to three months or with fine which may extend to Two thousand 

five hundred rupees or with both. 

(3) No court in fervor to that of a Judicial Magistrate of the First Class 

shall try any offence punishable under this Act. 

(4) No court shall take cognizance of any offence punishable under this 

Act except on a report in writing of the facts constituting such offence 

made with the pervious sanction of the Chief Executive Officer. 

 

16. Enhanced punishment for default in payment of employees 

contributions already deducted :-  (1) Whoever makes default in the 

payment of the employees share of the contribution to the Fund after 

having deducted it from the wages of the employees in accordance with 

the provisions of this Act or the scheme, shall be punishable with 

imprisonment  for a term which may extend to one year, but which shall 

not be less than three months, and with fine which may extend to four 

thousand rupees; 

 Provided that the court may, for any adequate and special reasons to 

be mentioned in the judgment impose a sentence of imprisonment for a 

tern of less than three months. 

(2) Not with standing anything contained in the Code of Criminal 

procedure 1973 ( Central Act 2 of 1974) an offence under sub section (1) 

shall be cognizable  

 

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 

 

 

 

 

 



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17. Enhanced punishment for second or subsequent offence: - 

Whoever, having been convicted by a court of an offence punishable 

under this Act, again commits the same offence shall be punishable for 

every such subsequent offence with imprisonment for a term which may 

extend to one year, but  which shall not be less than three months, and 

with fine which may extend to four thousand rupees. 

 

 Provided that the court may, for any adequate and special reasons to 

be mentioned in the judgment, impose a sentence of imprisonment for a 

term of less than three months, 

 

18. Offence by companies:- (1) Where an offence under this Act has been 

committed by a company, every person who at the time the offence was 

committed was in charge of, and was responsible to, the company for the 

conduct of the business of the company as well as the company, shall be 

deemed to be guilty of the offence and shall be liable to be proceeded 

against and punished accordingly.  

 Provided that nothing contained in this sub section shall render any 

such person liable to any punishment, if the proves that the offence was 

committed without his knowledge or that he has exercised all due 

diligence to prevent the commission of such offence. 

(2) Not with standing anything contained in sub section (1) where any 

offence under this Act has been committed by a company and it is proved 

that the offence has been committed with the consent or connivance of, 

or is attributable to, any neglect on the part of any director, manager, 

secretary or other officer of the company, such director manager 

secretary or other officer shall be deemed to be guilty of that offence and 

shall be liable to be proceeded against and punished accordingly. 

 

Explanation: - For the purposes of this section 

(a) “Company” means any body corporate and includes a firm or other 

association of individuals and 

(b)  Director in relation to a firm means a partner in the firm 

 

 

 

 

 

 

 

 

 

 



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19. Directions by Government :- (1) The Government may, after 

consultation with the Board give to the Board general instructions to be 

followed by the Board. 

(2) In the exercise of its powers and performance of its duties under this act, 

the Board shall not depart form any general instruction issued under sub 

section (1), except with the previous permission of the Government. 

 

20. Power to order inquiry :- (1) The Government may at any time, appoint 

any person to inquire into the working of the Board and to submit a report to 

the Government  

(2) The Board shall give  the person so appointed all facilities for the proper 

conduct of the inquiry and furnished to him such documents, accounts and 

information in the possession of the Board as the may require, 

 

21. Power to supersede the Board:- (1) If, on consideration of the report 

under section 20 or otherwise the Government are of opinion that the Board 

has persistently made default in the performance of the duties imposed on it 

by or under the provisions of this act or the scheme or has exceeded or 

abused its powers, the Government may, by notification in the Gazette, 

supersede the Board for such period not exceeding six months as my be 

specified in the notification.  

 

 Provided that, before issuing a notification under this sub section the 

Government shall give a reasonable opportunity to the Board to show cause 

why it should not be superseded and shall consider the explanations and 

objections, if any, of the Board. 

(2) Upon the publication of a notification under sub section (1) :- (a) All the 

Directors of the Board shall. As from the date of such publication vacate 

their offices as such directors  

(b) All the powers and duties, which may be exercised or performed by the 

Board shall, during the period of super session, be exercised or performed by 

such officer of officers as may be specified in the notification 

(c) All funds and other properties vested in the Board shall, during the 

period of super session, vest in the Government.  

 

(3) On the expiration of the period of super session the Government shall 

reconstitute the Board in the manner provided in section 6 

 

22. Protection of action taken in good faith :- No suit or other legal 

proceeding shall lie against any director of the Board or the Chief Executive 

Officer or any other person in respect of anything which is in good faith 

done or intended to be done under this Act or any rule made there under or 

under the scheme 

 



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23. Bar of jurisdiction of civil courts :- No civil court shall have 

jurisdiction to settle, decide or deal with any question or to determine any 

matter which is by or under this act or the scheme required to be settled, 

decided or dealt with or to be determined by the government or the Board or 

the Chief Executive Officer or any other officer appointed under sub section 

(i) of section 7 

 

24. Special provisions for transfer and vesting of welfare fund established by 

custom or agreement :- All welfare funds established either by custom or 

agreement before the date of commencement of this Act and standing to the 

credit of the employees on such date shall, not with standing anything to the 

contrary contained in any law for the time being in force or in any deed or 

other instrument, stand transferred to, and vest in the Fund established under 

section 3 and shall be credited to the accounts of the employees entitled 

there to the Fund.  

*25. Power to make rules :- (1) The Government may, by notification in the 

Gazette either prospectively or retrospectively make rules for the purpose of 

carrying into effect the provisions of this Act. 

(2) Every rule made under this Act shall be laid as soon as may be after it is 

made, before the Legislative Assembly while it is in session for a total 

period of fourteen day which may by comprised in one session or in two 

successive sessions, and if, before the expiry of the session in which it is so 

laid or the session immediately following, the Legislative Assembly makes 

any modification in the rule or deciders that the rule should not be made, the 

rule shall thereafter have effect only in such modified form or be of no 

effect, as the case may be so however that any such modification or 

annulment shall be without prejudice to the validity of anything previously 

done under that rule, 

 

 

 

 

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 

 

 

 

 

 

 

 



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*26. Repeal and saving :- (1) The Kerala Motor Transport Workers Welfare 

Fund Ordinance, 2005 (8 of 2005) except section 4 there of is hereby 

repealed . 

(2) Not with standing such repeal, anything done or any action taken under  

the principal Act as amended by the said Ordinance shall be deemed to have 

been done or taken under the principal Act as amended by this act. 

 

SCHEDULE 

[See reaction 3(3) 1]  
 

Matters for which provision may be made in the scheme 

 

1. The time and manner in which contributions shall be made to the 

Fund by employers and by, or on behalf of employees (whether 

employed directly, or through an agency ) the contributions which an 

employee may make under section 4 and the manner in which such 

contributions may be recovered, 

2. The payment by the employer of such sum of money as may be 

necessary to meet the cost of administering the Fund and the rate at 

which and the manner in which such payment shall be made; 

3. The constitution of any committee for assisting the Board; 

4. The manner in which account shall be kept, the investment of money 

belonging to the Fund in accordance with any directions issued or 

conditions specified by the Government, the preparation of the 

budget, the audit of accounts and the submission of reports to the 

Government. 

5. The conditions under which withdrawals from the Fund may by 

permitted and any deduction or forfeiture may by made and the 

maximum amount of such deduction or for feaiure. 

6. The fixation by the Government in consultation with the Board of the 

rate of interest payable to members. 

7. The from in which an employee shall furnish particulars about himself 

and his family whenever required. 

8. The nomination of a person to receive the amount standing to the 

credit of a member after his death and the cancellation or variation of 

such nomination, 

9. The registers and records to be maintained with respect to employees 

and the returns to be furnished by the employers or agencies. 

 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005) 

 

 



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10.  The form or design of any identity card, token or dices for the 

purpose of identifying any employee,  and for issue custody and 

replacement thereof  

11.  The fees to be levied for any of the purposes specified in this 

schedule 

12. The conditions under which a member may be permitted to pay 

premium on life insurance reform the Fund. 

13. The further powers, if any, which may be exercised by the officers 

appointed under this Act. 

14. The manner in which the Directors of the Board shall be chosen and 

appointed. 

15.  The manner in which any welfare fund vested under section 24 is to 

be brought and credited to the accounts of the employees entitled 

there to in the Fund. 

16. * The rate of Welfare fund payable to members and the conditions for 

such payment  

17. The conditions under which any amount due to the Board may be 

written off. 

18.  Any other matter which is to be provided for in the scheme or which 

may be necessary or proper for the purpose of implementing the 

scheme. 

  

…………………………………………………………………………… 

 

* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)