Transport Act, 1944

Chapter VI.

Officers and Servants.

Compensation of certain officers and servants of the dissolved companies.

43.—(1) (a) Where—

(i) a person was, on the 1st day of July, 1944, an officer or servant of either dissolved company, and

(ii) that person has not, before the establishment date, become a pensioner or annuitant by reason of his service in that company, or voluntarily retired or been removed from the service of that company by reason of misconduct or incapacity, and

(iii) that person's office or situation is abolished after the said 1st day of July, 1944, and whether before, on or after the establishment date, and

(iv) the said office or situation is abolished directly and solely in anticipation of or as the result of the amalgamation effected by this Part,

that person shall be paid by the Company compensation calculated in the manner set out in the Fifth Schedule to this Act;

(b) if any dispute or difference shall arise between the Company and any person entitled or claiming to be entitled to compensation under paragraph (a) of this subsection as to whether that person's office or situation was or was not abolished directly and solely in anticipation of or as the result of the amalgamation effected by this Part, it shall be presumed, unless the contrary is proved by the Company, that the office or situation was so abolished;

(c) where a person is dismissed from the service of the dissolved railway company or of the Company in such circumstances that he is entitled to compensation under subsection (4) of section 9 of the Railways Act, 1933 (No. 9 of 1933), then, notwithstanding anything in paragraph (a) of this subsection, he shall not be entitled to compensation by virtue of that paragraph.

(2) Where—

(a) a person was, on the 1st day of July, 1944, an officer or servant of either dissolved company, and

(b) that person, by reason of the amalgamation effected by this Part, is transferred to the service of the Company, and

(c) either—

(i) by reason of such transfer and without his consent, that person suffers any direct pecuniary loss, or is in any worse position in respect of the conditions of his service as a whole (including tenure of office, remuneration, gratuities, superannuation, sick fund or any benefits or allowances of that dissolved company, whether obtaining legally or by customary practice and whether applicable to himself or his widow or children or other dependents) as compared with the conditions of service formerly obtaining with respect to him, or

(ii) that person is required by the Company to perform duties which are not analogous to or are an unreasonable addition to those which, as officer or servant of that dissolved company, he was liable to perform,

he shall be entitled to be paid by the Company compensation consisting of a lump sum of such amount as is reasonable.

(3) For the purposes of subsection (1) of this section, the managing director of the dissolved transport company shall be (deemed to be an officer of that company.

(4) If any dispute or difference shall arise between the Company and any person entitled or claiming to be entitled to compensation under this section as to whether he is or is not entitled to such compensation or as to the amount or method of calculation of such compensation or as to any other matter arising under the Fifth Schedule to this Act, such dispute or difference shall, on the application of the Company or such person, be referred to the standing arbitrator appointed under this section and the decision of the standing arbitrator shall be final.

(5) Any person who is in receipt of an annual sum by way of compensation under this section may, within one year from the date on which the annual sum is fixed, apply to the Company to commute not more than one-fourth of the annual sum by the payment of a capital sum, and thereupon the following provisions shall have effect:—

(a) the Company shall not unreasonably refuse the application;

(b) if the Company refuses the application the applicant may, within one month after the Company has notified the applicant of such refusal, appeal to the standing arbitrator, who shall hear and determine the appeal, and the decision of the standing arbitrator shall be final and conclusive;

(c) where the Company grants the application or, on the refusal of the application by the Company, the standing arbitrator, on appeal, decides it should be granted—

(i) the Company shall, after the capital sum to be paid by way of commutation has been calculated, inform the applicant of the amount thereof and the applicant may, within one month after being so informed, withdraw his application,

(ii) if the applicant does not so withdraw his application, the Company shall pay to the applicant the said capital sum by way of commutation of the said part of the said annual sum;

(d) the said capital sum to be paid by way of commutation shall be such sum as would, on the date of the application, purchase, through an annuity scheme approved by the Minister, an immediate life annuity payable to the applicant equal to the annual amount of the said part of the said annual sum, the applicant's age for this purpose being reckoned at the age he will attain on his birthday next following the date of the application.

(6) The Chief Justice, whenever so requested by the Minister, shall appoint a person to be the standing arbitrator for the purposes of this section, and shall fix the fees to be paid to that person in respect of· any dispute or difference referred to him under subsection (4) of this section or any appeal to him under subsection (5) of this section.

(7) The fees payable to the standing arbitrator shall be paid by the Company.

(8) The standing arbitrator—

(a) may administer oaths,

(b) may award costs in his discretion, direct to and by whom and in what manner those costs or any part thereof shall be paid, measure the amount of those costs and require security for costs to be given to his satisfaction by any party at any stage of the proceedings before him,

(c) may do all or any of the following things—

(i) summon witnesses to attend before him,

(ii) examine on oath any witnesses attending before him,

(iii) require any such witness to produce any document in his power or control which the arbitrator considers necessary,

(d) may at any time correct any clerical mistake or error in an award arising from any accidental slip or omission,

(e) may, at the request of either party to proceedings before him, hear the proceedings in open court.

(9) A witness before the standing arbitrator shall be entitled to the same immunities and privileges as if he were a witness before the High Court.

(10) If any person—

(a) on being duly summoned as a witness before the standing arbitrator makes default in attending, or

(b) being in attendance as a witness refuses to take an oath legally required by the standing arbitrator to be taken, or to produce any document in his power or control legally required by the standing arbitrator to be produced by him, or to answer any question to which the standing arbitrator may legally require an answer,

such person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding twenty-five pounds.