‘Institutions ferrying staff will fall under MTWA

Dismissing an appeal filed by the Management of Christian Medical College (CMC), Vellore against a single judge’s order, a division bench comprising of Justice K K Sasidharan and Justice R. Subramanian said, “Once it is found that the appellant institution charges a fee for transporting its own students/doctors / employees, it would definitely be a ‘Motor Transport Undertaking’ within the meaning of Section 2(g) of the Motor Transport Workers Act 1961.”

CMC had contended that it is a minority educational institution and apart from running a medical college it also operates a nursing college and research institution and a full-fledged hospital. To cater to the needs of the students and staff comprising doctors, nurses, paramedics and other skilled and unskilled employees, the institution owns certain vehicles, which are used for transporting them and hence the said Act would not apply to them.

The institute took up the issue to the secretary of Labour and Employment Department, by stating that the said Act would not apply to the appellant institution. However, the secretary in 2005, had concluded that since the government had decided not to grant exemption to Indian Institute of Technology in Chennai and nine other educational institutions, CMC cannot be construed as falling outside the scope of the Act. Challenging this, CMC filed a writ petition which was dismissed by a single judge holding that the Government had granted an exemption, for a limited period, to the Educational Institutions from the purview of the Act and the said exemption had lapsed as it was not renewed.

The CMC filed an appeal challenging this and the division bench upheld the dismissal on a different note that if it is shown that passengers are transported for hire or reward, then the institution engaged in such transport could be termed a ‘Motor Transport Undertaking’ and hence would fall within the purview of the MTWA, 1961.