AGREEMENT BETWEEN BANGALORE METROPOLITAN TRANSPORT CORPORATION AND SHRI

AGREEMENT BETWEEN BANGALORE METROPOLITAN TRANSPORT
CORPORATION AND SHRI _______________________ , PRIVATE BUS OWNER

This agreement is made this day ________between the Bangalore Metropolitan Transport Corporation represented by its Managing Director (hereinafter called BMTC) and Shri ______________ (hereinafter called the owner) which expressions shall include his heirs, successors and assignees on the other part.

Whereas the BMTC is a State Transport Undertaking created under Section-3 of the Road Transport Corporation Act 1950 with exclusive power and authority to ply and operate passenger transport buses in Urban and Sub-Urban routes of Bangalore Metropolitan area and such other areas as per the approved schemes.

Whereas the BMTC proposes to supplement and augment its resources and has accordingly resolved to invite owners of passenger Transport Vehicles to offer their vehicles to be operated in the aforesaid areas subject to the following terms and conditions.

Whereas the owner has offered his bus accordingly.

NOW THIS AGREEMENT WITNESSETH AS UNDER

1. This agreement shall be valid and binding on the parties for the period between _________ and

2. The owner hereby agrees to lend his (_________) number of buses together with the driver on hire with the following specifications :

i) The bus shall have two doors

ii) The minimum length of the bus shall be 33 feet 9 inches

iii) The Chassis and the Engine shall be new and be of the latest model in relation to the year of the agreement.

iv) The lubrication of the bus shall be in accordance with the specification prescribed by the BMTC.

3. Upon this agreement, followed by a letter of intent and within Ninety days therefrom, the owner shall make available all the buses to ply on the BMTC routes. Provided, 30% of the buses shall make available in the first 30 days, another 30% in another 30 days and the balance within 90 days of signing the agreement.

4. The buses thus lent shall be operated as Stage Carriage in the City of Bangalore and such other routes specified by BMTC under its total and complete control.

5. Each of the bus offered by the owner shall have a driver in the employment of the owner. The salaries and such other emoluments among other service benefits shall be the responsibility of the owner alone. The drivers appointment by the owner shall confirm to the requirements of the relevant statues.

6. The Corporation shall provide a Conductor to each bus borne on its own service. The payment of salary and such other emoluments among other service benefits shall be the responsibility of the Corporation alone. He shall be provided with Tickets, waybill and other Conductor’s equipments as deemed fit by BMTC.

7. The driver provided by the owner shall possess a valid HTV Driving Licence and P.S.V Badge. He shall wear such gear and uniform as prescribed by the Corporation from time to time. He shall scrupulously follow instructions issued by the Corporation periodically. If and when the driver is found deficient in behaviour, upon notice by the Corporation, the owner shall replace him immediately by another. The drivers provided by the owner shall not align themselves with any trade union activity or form any union vis-à-vis the Corporation. In such events, the owner is liable to replace such of those employees.

8. Such of the drivers provided by the owner shall not have been in the employment of any of the State Transport Undertakings. Such of these drivers, found unfit for driving an H.T. vehicle shall be liable to be replaced by a suitable driver in the opinion of the Corporation. The upper age limit for these drives shall be 58 years.

9. The drivers shall carry an identity card together with an attested photograph which in turn shall be attested by B.M.T.C.

10. The owner shall keep his bus road-worthy in terms of Chapter-VII of the motor Vehicles Act 1988 and Rules made thereunder from time to time by carrying out necessary maintenance and repairs at his own cost. At all times the bus must posses a Fitness Certificate issued by appropriate authority.

11. The owner shall supply fuel, lubricant oil, tyres and tubes, spare parts, etc. required for running the bus including the maintenance of the bus at his own cost.

12. The owner shall keep his bus duly insured including a comprehensive insurance.

13. It is mutually agreed that the Corporation shall along bear the Motor Vehicles Tax in respect of the vehicle provided by the owner. However, all other taxes, duties and levies if any shall be borne by the owner alone.

14. The owner alone is liable to answer any claim arising from accident, damage or loss caused during the operation of the bus. The Corporation is not liable to answer any such claims including claims made in connection with the injuries or loss of life sustained by passengers or any other road user. Besides, all tortuous liability shall be borne by the owner or his insurer, if any.

15. It is mutually agreed that the Corporation shall not be responsible for any damage or loss caused to the owner’s bus hired, during the period of agitations, strikes, accidents, etc.

16. The Conductor of the bus is alone entitled to collect all fare and luggage charges neither the owner nor the driver shall have any claim to the fare and luggage charges or any amount so collected.

17. The owner shall be liable to answer all claims including fines and penalties following violation of traffic rules and regulations, etc.

18. The owner will be liable to answer any claim for compensation or damages on account of tortious liability.

19. It shall be the responsibility of the owner to produce the Driver/Bus in a Court of Law and before the Police Authorities whenever required in case of accident or any other contingencies.

20. The owner shall not withdraw any bus from the operation except after 24 hours notice and with prior written consent of the Depot Manager concerned. Any violation of this clause shall be governed by Annexure – I.

21. The owner agrees to make his bus or buses availability on all days of operation and atleast for a minimum period of 14 hours in a day. On those days when the bus is not available for minimum period of 14 hours in a day without justification that day shall be excluded from being counted for purpose of operation of the bus. A day shall mean 24 hours from the time the bus begins operation.

22. The Corporation on its part agrees to the following :

i) To pay hire charges to the owner at the rate of Rs. 8,26 per km. for the first year subject to the vehicle operation in the slab of 250-254 kms. For the subsequent slabs of 5 kms. the hire charges vary as shown in Annexure II. For better understanding of this clause the following illustrations are stated and there is complete agreement with regard to the illustration. The following costs are taken as Fixed Costs and the rest are taken as Variable Costs.

a) Staff Cost

b) Interest on Capital

c) Insurance

d) Profit

Illustration :

a) If a bus runs for 253 kms. in a day, the rate payable would be Rs.8.26 based on costs as worked as on 01.01.99 per km. and the total payment for the day would be Rs.2089.78 for the first year.

b) If a bus runs for 289 kms. in a day, the rate payable would be Rs.7.84 based on costs as worked as on 01.01.99 per km. and the total payment for the day would be Rs.2265.76 for the first year.

c) If a bus runs for 319 kms. in a day, the rate payable would be Rs.7.55 based on costs as worked out as on 01.01.99 per km. and the total payment for the day would be Rs.2408.45 for the first year.

(The illustrations are based on the calculations admissible for the first year of operation)

ii) a) It is agreed that interest shall be paid on the diminishing balance on the assumption that investment per bus is Rs.8/- lakhs. The rate of interest is reckoned at 16% and the number of quarterly installments is taken as 20. The interest cost liability shall reduce itself progressively during he subsequent years. The calculation is more clearly illustrated at Annexure – III. The year of completions is reckoned as 12 months (If it is May 1^st, then the period will be upto April 30) whichever the starting month may be.

b) The hire charges shall vary once in a year according to increase/decrease in cost of (i) Tyres, tubes, Haps (ii) Spares and (iii) Lubricants and would be revised from the 1^st of April of every year. The cost per km. on (i) Tyres, Tubes and Flaps (ii) Spares and (iii) Lubricants in the year preceding 1^st April of each year in the BMTC would be the basis for fixing the hire charges for the succeeding years.

iii) The Corporation is liable to pay hire charges on the basis of the kilometers operated having reference to the year of operation subject to a minimum of 250 kilometers per day. In the event of the Corporation not assigning the minimum distance of 250 kilometers per day, the Corporation shall pay the owner the hire charges as though the owner had operated the bus for 250 kilometers on that day and the pay structure shall accord to the slab for 250 to 254 kilometers.

iv) If for any default by the owner in the operation of the bus for the requisite minimum 250 kilometers per day, the owner shall be paid for the actual kilometers operated on the day at the rate applicable to the prescribed slab, The prescribed slab shall mean the total kilometers allotted to the bus on that day.

23. The owner of the bus shall be liable to employ a Conductor if and when required owing to any unforeseen circumstances or contingencies. Thereupon the owner shall remit a fixed sum for the routes operated by him or the actual revenue collected whichever is more. The determination of the sum shall be within the discretion of the Corporation. The remuneration payable to such Conductor shall be borne by the owner himself.

24. It is mutually agreed that the payment per kilometer would be as per the terms stipulated in this agreement irrespective of the fact that the actual cost of various parameters is different from what is stated herein. For example even if the interest rate actual paid by the operator is different from 16% which is taken in the agreement, the payment would be based on 16% only. The same applies to other elements of costs also.

25. i) It is mutually agreed that the route distance shall be certified as per the kilometers operated or the trip distance as per time table whichever is less.

ii) It is agreed that the Corporation is at liberty to install electronic devices to the hired bus to check and ensure punctuality and regularity of the operations.

iii) The owner shall submit his claim twice in a month once for the period from 1^st to 15^th and the other for the remaining part of the month, accompanied by a certificate issued by the Designated Officer of the Corporation with regard to the actual kilometers operated during the respective period.

iv) The Corporation shall make payment of hire charges within 10 days from the date of receipt of the claim.

26. i) The owner shall maintain a vehicle logbook in the proforma prescribed by the Corporation indicating date-wise operational particulars which should be attested by the authorized officials of the Corporation.

ii) The owner shall not use the bus covered by this agreement to ply for any other purpose at any time during the period of agreement.

iii) The owner shall deposit the R.C. Book and the Tax Card of the bus with the Corporation duly exhibiting the copy of the R.C. Book in the bus and such R.C. Book will be given back to the owner for a period of 03 days in a quarter for making payment of taxes/F.C. renewal/accidents, etc.

27. The owner shall not transfer or otherwise alienate the vehicles during the period of the agreement except with prior permission of the Corporation.

28. The Corporation shall be at liberty to fix and change the route and the timings for the operation of the Bus according to its discretion.

29. The Corporation is empowered to specify the colour of the bus provided by the owner. The owner thereon shall act accordingly. He is also liable to display literature as provided by the BMTC both inside and outside the bus. It is however, agreed that there shall be no display of advertisements on the panels or the interiors of the bus. By mutual consent, advertisement may be displayed subject to the BMTC retaining 75% of such revenue from the advertisement. The owner is entitled to retain 25% of the same.

30. The bus body shall be built according to the specification prescribed by BMTC and at the owner’s own cost. He shall thereupon maintain all specifications during the operation of the agreement.

31. The owner shall deposit a sum of Rs.10,000/- per bus with the Corporation as Security Deposit. This Security Deposit shall not carry any interest and shall be repayable upon the expiry of the agreement subject tot deductions, if any.

32. If and when the Corporation supplies diesel to the bus provided by the owner the latter shall pay the cost of such diesel to the Corporation at the price obtaining on the day.

33. The owner shall carryout such repair, modification in regard to colour and body specifications as suggested by the Corporation within seven days. He shall have his own garage for the maintenance of the buses lent to the BMTC.

34. The owner shall be liable to pay penalties/fine as levied by the Corporation as specified in the Annexure-I of this agreement. The owner committing default for over ten times, will be liable to incur termination of the Contract. The Corporation is empowered to deduct the penalties and fines so levied from the amount due to the owner towards hire charges or deposits.

35. Upon such termination the owner shall not be entitled to payment of any compensation. On termination of the contract on the ground of violation of its terms, the Corporation may forfeit the Security Deposit.

36. The Managing Director, BMTC is the sole authority to interpret the terms and conditions in this regard and his decision shall be final. He is also empowered to terminate the contract upon violations of the terms and conditions herein.

37. It is agreed that the principles underlying the ESMA Act shall be applicable to the services rendered by the owner and driver and besides their failure to ply the buses during strikes and such other industrial agitations may result in the termination of the contract and the forfeiture of the Security Deposit among other forfeitures and penalties.

38. The Managing Director of the BMTC may authorize any of its Officers to sign deeds, agreements, communications, etc. For the immediate purpose by the Chief Traffic Manager of the Corporation is authorized to sign this agreement.

In witness where of parties hereto have set their respective hands on ___________

WITNESSES

1. ____________________

(PRIVATE BUS OWNER)

2. CHIEF TRAFFIC MANAGER

For and on behalf of the

Managing Director, BMTC

For VICE CHAIRMAN & MANAGING DIRECTOR