Tramways Act, 1886

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THE TRAMWAYS ACT, 1886 
 
 
 
CONTENTS 
 
PRELIMINERY 
 
1.  Short title and commencement. 
2.  Local extent. 
3.  Definitions. 
ORDERS AUTHORIZING THE 
CONSTRUCTION OF TRAMWAYS 
 
4.  Application for and consent necessary to making of order. 
 
5.  Consent of local or road-authority not necessary in certain cases. 
6.  Procedure for making order. 
7.  Contents of order. 
8.  Further order. 
9.  Power to authorize joint work by local authorities. 
10.  Cessation of powers given by an order. 
CONSTRUCTION AND 
MAINTENANCE OF TRAMWAYS 
 
11.  Mode of formation of tramway. 
 
12.  Inspection of tramway before opening. 
13.  Agreement between road authority and promoter as to repair of roadway. 
TRAFFIC ON TRAMWAYS 
 

 
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14.  Rights of promoter and the public over tramways. 
 
15.  Tolls leviable by promoter or lessee. 
16.  Carriage of dangerous or offensive goods. 
LICENSES TO USE TRAMWAYS 
 
17.  Grant to third parties of licenses to use tramway in certain events. 
18.  Licensee to give to promoter or lessee an account of traffic. 
DISCONTINUANCE OF TRAMWAYS 
 
19.  Cessation of powers of promoter and lessee on discontinuance of tramway. 
20.  Powers of road-authority on cessation of powers of promoter. 
INSOLVENCY OF PROMOTER 
 
21.  Proceedings in case of insolvency of promoter. 
 
PURCHASE OF TRAMWAYS 
 
22.  Future purchase of undertaking by local authority. 
WORKING OF TRAMWAYS OWNED 
BY LOCAL AUTHORITIES 
 
23.  Lease of, or working of, tramway by local authority. 
 
RULES 
 
24.  Power to make rules. 
25.  Power to impose penalty by rule. 
26.  Procedure for making, and publication of, rules. 
OFFENCES 
 
27.  Penalty for failure of promoter, lessee or licensee to comply with act or order. 
 
28.  Penalty for obstructing promoter in exercise of his powers. 
29.  Penalty for interfering with tramway. 
 
30.  Penalty for using tramway with carriage having flange wheels.  
 
31.  Penalty for evading payment of proper toll. 
 
32.  Penalty for taking or sending dangerous or offensive goods without giving notice. 
 
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33.  Penalty for licensee not giving to promoter or lessee an account of traffic or giving 
 false account. 
34.  Saving of prosecutions under other laws. 
SETTLEMENT OF DIFFERENCES 
 
35.  Differences between promoters or lessees and authorities. 
 
RECOVERY OF TOLLS 
 
36.  Recovery of moneys due from promoters and in certain cases, from lessees. 
37.  Recovery of tolls from licensee. 
38.  Recovery of tolls from passengers. 
SAVINGS 
 
39.  Promoter to have right of user only. 
 
40.  Saving of power over roads traversed by tramways. 
41.  Saving of power of local authority and police to regulate traffic or roads. 
SUPPLEMENTAL PROVISIONS 
 
42.  Promoters, lessees and licencees to be responsible for all injuries. 
 
43.  Want of funds not a sufficient reason for default. 
44.  Power to exempt from municipal taxation.  
45.  Application by local authorities of local funds to tramways. 
46.  Extension of Act to existing tramways. 
47.  Prohibition of construction of tramways except under this Act. 
48.  Transfer of control on exclusion of local area from circle of local authority. 
49.  [Repealed.]. 
50.  Powers of Government exercisable from time to time. 
 
 
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THE TRAMWAYS ACT, 1886 
 
l
ACT No. XI OF 1886 
 
[12th March, 1886] 
 
An Act to facilitate the construction and to regulate the working of Tramways 
 
 WHEREAS it is expedient to facilitate the construction and to regulate the working of 
tramways; It is hereby enacted as follows:— 
 
PRELIMINARY 
 
 1. Short title and commencement.—(1) This Act may be called the 2* Tramways Act, 
1886; and 
 
 (2) It shall come into force at once. 
 
 2. Local extent.—3[(1) It extends in the first instance to 4[the Punjab] and the 5[North- 
West Frontier Province].]  6[(2) This Act may by notification in the official Gazette be extended to the whole or any 
part of the said territories by the Provincial Government concerned.] 
 
 3. Definitions. In this Act, unless there is something repugnant in the subject or context,— 
(1) “local authority” means a municipal committee, district board, body of port commissioners or 
other authority legally entitled to, or entrusted by 7[the 8[Federal Government] or any Provincial 
Government] with, the control or management of a municipal or local fund: 
 
 9[*  *  *  *  *  *  *] 
 
 (2) “road” means the way of a road, street, thorough fare, passage or place along or across 
which a tramway authorized under this Act is, or is intended to be, laid, and includes the surface-
soil and sub-soil of a road, and the footway, berms, drains and ditches of a road, and any bridge, 
culvert or causeway forming part of a road: 
 
 (3) “road-authority”, in relation to a road, means— 
 
(a)  if a local authority maintains and repairs the road, then that authority; 
 
 
1For Settlement of Objects and Reasons, see Gazette of India, 1885, Pt. V, p. 308 ; for Report of the Select Committee, see ibid., 1886, Pt. IV, p. 131; 
and for Proceedings in Council, see ibid., 1885, Supplement, p. 1544 ; and ibid., 1886, Supplement, pp. 7 and 418. 
This Act has been extended to the town of Karachi and its suburbs, see Bombay Gazette, 1887, Pt. I. p. 899. 
For separate Acts on the subject of tramways in Karachi, see the Karachi Tramways Act, 1883 (Bom 2 of 1883). 
2The word “Indian” omitted by A.O.,1949, Sch. 
3Subs. ibid., for the original sub-section(I). 
4Subs. by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 8, for “West Punjab”. 
5Subs. by F.A.O, 1975, Art. 2 and Sch., for “North West Frontier” which was amended by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 
1960), s. 3 and 2nd Sch. (with effect from the 14th October, 1955), to read as above. 
6Subs. by A.O.,1937, for the original sub-section (2). 
7Subs. ibid., for “the Govt.”. 
8Subs. by F. A.O., 1975, Art. 2 and Table, for “Central Government”. 
9Clause (1a) which was ins, by A.O.,1961, Art. 2 and Sch. (with effect from the 23rd March, 1956), has been omitted by A.O.,1964, Art. 2 and Sch. 
 
 
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(b)  if a local authority does not maintain and repair the road, and the road is 
neither vested in l[Government] nor maintained and repaired by 2[the 
3[Federal Government] or any Provincial Government], then the person in 
whom the road is vested; and 
 
(c)  if a local authority does not maintain and repair the road, and the road is 
vested in l[Government] or maintained and repaired by 2[the 3[Federal 
Government] or any Provincial Government], then 4[the Government for 
whose purposes a road is so vested or by which the road is maintained and 
repaired, as the case may be]: 
 
 (4) “circle”, in relation to a local authority or road authority, means the area within the 
control of that authority: 
 
 5[(5) “tramway” means a tramway having one, two or more rails, and includes– 
 
(a)  any part of a tramway, or any siding, turnout, connection, line or track 
belonging to a tramway; 
 
(b)  any electrical equipment of a tramway; and 
 
(c)  any electric supply-line transmitting power from a generating station or sub-
station to a tramway or from a generating station to a sub-station from which 
power is transmitted to a tramway.] 
 
 
 (6) “order” means an order authorizing the construction of a tramway under this Act, and 
includes a further order substituted for, or amending, extending or varying, that order: 
 
 (7) “promoter” means a local authority or person in whose favour an order has been made, 
and includes a local authority or person on whom the rights and liabilities conferred and imposed 
on the promoter by this Act and by the order and any rules made under this Act as to the 
construction, maintenance and use of the tramway, have devolved: 
 
 (8) “undertaking” i ncludes all moveable and immoveable pro perty of the promoter 
suitable to and used by him for the purposes of the tramway: 
 
 (9) “carriage”, in the case of a tr amway on whi ch s team-power or any other mecha nical 
power 6[or electrical power] is used, includes an engine worked on the tramway for the purpose of 
producing 6[or utilizing] that power: 
 
 
 
 
1Subs. by A.O.,1961, Art. 2, for “Her Majesty” (with effect from the 23rd March, 1956). 
2Subs. by A.O., 1937, for “the Govt.”. 
3Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”. 
4Subs. by A.O., 1937, for “the L. G.”. 
5Subs. by the Indian Tramways (Amdt.) Act, 1911 (5 of 1911), s. 2, for the original clause. 
36Ins. by the Indian Tramways (Amdt.) Act, 1911 (5 of 1911), s. 3. 
 
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 (10) “toll” includes any charge leviable in respect of the use of a tramway: 
 
 (11) “lessee” means a person to whom a lease has been granted of the right of user of a 
tramway and of demanding and taking the authorized tolls: 
 
 (12) “District Magistrate” includes an officer empowered by the 
1
[Government] by name or 
by virtue of his office to discharge within any local area all or any of the functions of a District 
Magistrate under this Act:
 
 
 (13) “District Court” means a principal Civil Court of original jurisdiction, and includes a 
High Court having ordinary original civil jurisdiction: 
 
 (14) “Col1ector” means the chief officer in charge of the revenue-administration of a district, 
and includes an officer empowered by the 1[Government] by name or by virtue of his office to 
discharge within any local area the functions of a Collector under this Act: 2* 
 
 (15) “prescribed” means prescribed by rules made by the 1[Government] under this Act: 3[and 
4[(16) “Government” means the Provincial Government].] 
 
ORDERS AUTHORIZING THE 
CONSTRUCTION OF TRAMWAYS 
 
 4. Application for and consent necessary to making of order.—(1) The 
1
[Government] 
may make an order authorizing the construction of a tramway in a circle on application made:— 
 
(a)  by the local authority of the circle with the consent of the road-authority of 
any road or part of a road which is to be traversed by the tramway and of 
which the local authority is not itself the road-authority; or 
 
(b)  by any person with the consent of the local authority of the circle, and of 
the road-authority of any road or part of a road which is to be traversed 
by the tramway and of which the local authority is not the road authority: 
 
 5[*  *  *  *  *  *  *] 
 
 (2) A local authority shall not make an application for an order or be deemed to consent 
to an application being made by any person for an order, unless the making of the application or the 
giving of the consent has been approved by the local authority in manner prescribed. 
 
 
1Subs. by A. O., 1937, for “L. G.”. 
2The word “and” rep., ibid. 
31ns. ibid. 
4Clause (16) which was ins. by A.O., 1937, and subsequently amended by. A.O., 1949, Sch. and A.O., 1961, Art. 2 and Sch. (with effect from the 23 rd 
March, 1956) has been subs. by A. O., 1964, Art.2 and Sch. 
5The proviso to sub-section 4(1) rep. by A.O., 1937 
 
 
 
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 5. Consent of local or road-authority not necessary in certain cases. When it is proposed to 
lay a tramway in two or more circles, and a local authority or road-authority having control in either 
or any of the circles does not consent thereto, or attaches conditions to its consent, the 1[Government] 
may, nevertheless, make an order authorizing the construction of the tramway in the circle, or by the 
order impose on the promoter any conditions which it deems fit, if, after considering the reasons of 
the authority for withholding its consent or attaching the conditions thereto, it is satisfied that the 
construction of the tramway in the circle is expedient, or, as the case may be, that the conditions 
attached by the authority to its consent ought not to be imposed. 
 
 6. Procedure for making order.—(1) The 
1
[Government] on receiving an application shall 
consider it, and, if satisfied as to the propriety of proceeding thereon, publish in the official 
Gazette, and in such other manner as it deems sufficient for giving information to persons 
interested, a draft of a proposed order authorizing the construction of the tramway. 
 
 (2) A notice shall be published with the draft stating that any objection or suggestion which 
any person may desire to make with respect to the proposed order will, if submitted to the 
1[Government] on or before a date to be specified in the notice, be received and considered. 
 
 (3) If, after considering any objections or suggestions which may have been made with 
respect to the draft on or before the date so specified, the 1[Government] is of opinion that the 
application should be granted, with or without addition or modification, or subject or not to any 
restriction or condition, it may make an order accordingly. 
 
 (4) Every order authorizing the construction of a tramway shall be published in the official 
Gazette in English, and in the other prescribed language or languages, if any; and that publication 
shall be conclusive proof that the order has been made as required by this section. 
 
 7. Contents of order.—(1) An order made under section 6 shall empower the  promoter 
therein specified to construct an maintain the tramway therein described in  the manner therein 
provided, and shall specify the time within which the tramway shall be commenced and the time 
within which it shall be completed and opened for public traffic. 
 
 (2) The order may also provide in manner consistent with this Act, for all or any of the 
following, among other matters, that is to say:— 
 
(a)  a period before the expiration of which the tramway shall not be commenced, 
and the conditions subject to which the local authority, when it is not itself the 
promoter, may, within that period elect to be substituted in the place of the 
promoter in respect of the undertaking or of so much thereof as is within its 
circle; and the limits of time within which, and the terms upon which, the 
local authority may, after the tramway has been constructed, require the 
promoter to sell to it the undertaking or so much thereof as is within its circle; 
 
 
 
1Subs. ibid., for “L. G.”. 
 
 
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(b)  the acquisition by the promoter of land for the purposes of the tramway, and 
the disposal by him of land which has been acquired but is no longer required 
for those purposes; 
 
(c)  the conditions subject to which roads may be opened and broken up for the 
purposes of the construction or maintenance of the tramway or any part 
thereof, and the method of, and materials to be used in, the reinstating of the 
roads, and the approval of the method and materials by the l[Government] or 
the road-authority before the commencement of the work; 
 
(d)  the conditions on which the tramway may be constructed over a bridge or 
across a railway or tramway when the carriageway over the bridge is to form 
part of the tramway or when the tramway is to cross a railway or another 
tramway on the level; 
 
2
[(e)  the space which shall ordinarily intervene between the outside of the 
carriageway on either side of a road whereon the tramway is to be constructed, 
and— 
 
(i)  in the case of a tramway having one rail, the rail of the tramway, or 
 
(ii)  in the case of a tramway having two or more rails, the nearest rail 
of the tramway,  
 and the conditions on which a smaller space may be permitted;] 
 
(f)  the gauge of the tramway, the rails to be used, and the mode in which, and the 
level at which, they shall be laid and maintained; and the adoption  and 
application by the promoter of such improvements in the rails, and in, their 
situation, and in the sub -structure upon which they rest, as the l[Government] 
may from time to time require; 
 
(g)  the portion of the road or roads traversed by the tramway to be kept in repair 
by the promoter; the maintenance by the promoter to the satisfaction of the 
1[Government] or the road -authority, or both, of that portion of the road or 
roads; and the liability of the promoter, on the requisition of the 
1[Government], from time to time to adopt and apply such improvements in 
the tramway as the 1[Government] may consider necessary or desirable for the 
safety or convenience of the public, and to alter the position or level of the 
tramway to suit future alterations in the road or roads; 
 
 
 
 
1Subs. by A.O., 1937, for “L. G.”. 
2Subs. by the Indian Tramways (Amdt) Act, 1911 (5 of 1911), s. 4, for the original clause. 
 
 
 
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(h)  the application of material excavated by the promoter in the construction 
or maintenance of the tramway; 
 
(i)  the provision of such crossings, passing-places, sidings, junctions and other 
works, in addition to those specified in or authorized by the order, as may 
from time to time be necessary or convenient to the efficient working of the 
tramway; 
 
(j)  the powers which may from time to time be exercised by the 
1
[Government], 
the local authority, the road-authority or any person in respect of sewers, 
drains, telegraph-lines, gas-pipes, water-pipes or other things in or on land 
occupied by the tramway; the notice (if any) to be given of the intended 
exercise of those powers; the manner in which the powers shall be exercised; 
and the extent to which the tramway and the traffic thereon may be interfered 
with in the exercise thereof; 
 
(k)  the conditions subject to which the promoter may from time to time interfere 
with, or alter or require the alteration of the position of, drains (not being 
sewers or main drains), telegraph-lines, gas-pipes, water-pipes or other things 
as aforesaid; 
 
(l)  the provision of a temporary tramway in place of a part of a tramway which 
has been removed, or of which the use has been discontinued by reason of 
the execution of any work affecting a road along which the part of the 
tramway was laid, or by reason of the use of the road being interrupted by 
floods or other cause; 
 
(m)  the motive power to be used on the tramway, and the conditions on which 
steam-power or any other mechanical power 2[or electrical power] may be 
used; 
 
(n)  the nature, dimensions, fittings, appliances and apparatus of the carriages to be 
used on the tramway, and the inspection and examination thereof by officers 
of the 1[Government] or the local authority, and the liability of the promoter or 
lessee, on the requisition of  the 1[Government], from time to time, to adopt 
and apply such improvements in the carriages, and in the fittings, appliances 
and apparatus, as the 1[Government] may consider necessary or desirable for 
the safety or convenience of the public; 
 
(o)  the traffic wh ich may be carried on the tramway, the traffic wh ich the 
promoter or lessee shall be bound to carry, and the traffic which he may refuse 
to carry; the tolls to be leviable by the promoter or lessee, and the periodical 
revision thereof by the 1[Government]; and the regulation of the traffic and of 
the levy of the tolls; 
 
 
 
1Subs. by. A. O., 1937, for “L. G.”. 
2Ins. by the Indian Tramways (Amdt.) Act, 1911 (5 of 1911), s. 5. 
 
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(p)  the use of the tramway free of toll by the local authority, with its own 
carriages, for specified purposes, during specified hours, with power to the 
local authority to make such sidings and other works as may be necessary for 
communication between its premises and the tramway; 
 
(q)  the conditions subject to which the promoter may transfer the undertaking, 
or any part thereof, by sale, mortgage, lease, exchange or otherwise; and the 
conditions subject to which the local authority may be the transferee; 
(r)  the performance by the 
1
[Government] or by the local authority or road- 
authority of any work required by the Act or the order to be done by the 
promoter; and 
 
(s)  the penalty to be incurred by the promoter or lessee for failure to observe any 
condition or direction contained in the order, and the application of the 
penalty when recovered. 
 
 (3) The 1[Government] may, in providing in the order for the acquisition of land for the 
purposes of a tramway of which the promoter is not a company, direct that land may be acquired for 
the promoter under the provisions of the Land Acquisition Act, 2[1894(I of 1894)], in the same 
manner and on the same conditions as it might be acquired for the purposes of the tramway if a 
company were the promoter. 
 
 (4) The order shall imply the condition– 
 
(a)  in the case of a tramway of which a local authority is the promoter, that a  
lease thereof shall be granted only in manner by this Act provided; and 
 
(b)  in the case of a tramway of which a local authority is not the promoter, that a 
lease thereof shall be only of the right of user and of demanding and taking 
the authorized tolls, and shall not confer or impose on the lessee any of the 
powers or duties of the promoter in respect of the construction or maintenance 
of the tramway. 
 
 8. Further order.—(1) The 
l
[Government] may, on the application of the promoter, 
revoke, amend, extend or vary the order by a further order. 
 
 (2) An application for a further order shall be made in the same manner and subject to the 
same conditions as an application for an order. 
 
 (3) The 
l
[Government] may, in its discretion, either grant or reject the application. 
 
 
 
 
 
1Subs. by A.O., 1937, for “L.G.”. 
2Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and 2nd Sch., for “1870”. 
 
 
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 (4) If it grants the application, it shall make the further order in the same manner as an 
order, except that no addition to, or modification of, the rights, powers and authorities asked for in 
the application, or restriction or condition with respect thereto, shall be made or imposed by the 
further order without the consent in writing of the promoter. 
 
 9. Power to authorize joint work by local authorities.—(1) Subject to, and in accordance 
with, the provisions of this Act, the l[Government] may, on a joint application, or on two or more 
separate applications, make an order empowering two or more local authorities, respectively, jointly 
to construct the whole, or separately to construct parts, of a tramway, and jointly or separately to own 
the whole or parts thereof. 
 
 (2) All the provisions of this Act which relate to the construction of tramways shall extend 
and apply to the construction of the whole and the separate parts of the tramway, and the form of 
the order may be adapted to the circumstances of the case. 
 
 10. Cessation of powers given by an order.—(1) If a promoter authorized by an order to 
construct a tramway— 
 
(a)  does not within the time specified in the order substantially commence 
the construction of the tramway, or 
 
(b)  having commenced the construction suspends it without a reason sufficient in 
the opinion of the l[Government] to warrant the suspension, or 
 
(c)  does not within the time specified in the order complete the tramway and open 
it for public traffic, the following consequences shall ensue:— 
 
(i)  the powers given by the order to the promoter for constructing the 
tramway and oth erwise in r elation thereto s hall, un less t he 
1[Government], by special dir ection in writing, prolongs the time or 
condones the suspension, cease to be exercised except as to so much of 
the tramway as is then completed; 
 
(ii)  as to so much of the tramway as is then completed, the l[Government] 
may either permit, or re fuse to p ermit, the pow ers given by the ord er 
to continue; 
 
(iii)  if the l[Government] refuses to permit the powers to continue, then so 
much of the tramway as is then completed may be dealt with, under the 
provisions of this Act relating to the discontinuance of tramways, as a 
tramway of the working whereof the discontinuance has been proved 
to the satisfaction of the 1[Government]. 
 
 (2) A notification published by the 1[Government] in the official Gazette to the effect that on 
a date specified in the notification the construction of a tramway had not been substantially 
commenced or a tramway had not been completed and opened for public traffic, or th at the 
construction of a tramway had been suspended without sufficient reason, shall, for the purposes of 
this section be conclusive proof of the matter stated therein. 
 
 
 
1
Subs. by A. O., 1937, for “L.G.”. 
 
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CONSTRUCTION AND MAINTENANCE OF TRAMWAYS 
 
 11. Mode of formation of tramway. A tramway shall be constructed and maintained in the 
manner provided by the order. 
 
 12. Inspection of tramway before opening. A tramway, or portion or extension of, or 
addition to, a tramway, shall not be opened for public traffic 1[until it has been inspected and 
certified to be fit for such traffic by an engineer appointed 2[by the Government]]. 
 
 13. Agreement between road authority and promoter as to repair of roadway. Subject 
to the provisions of any order for the time being in force with respect to the matters mentioned in 
section 7, sub-section (2), clause (g) the road-authority and the promoter may from time to time 
enter into agreements as to the keeping in repair of the whole or a part of a road traversed by a 
tramway, and as to the proportion to be paid by either of them of the expense of keeping the road or 
part in repair. 
 
TRAFFIC ON TRAMWAYS 
 
 14. Rights of promoter and the public over tramways.—(1) The promoter of a tramway 
shall, subject to the provisions of sub-section (2) and to the other provisions of this Act and of the 
order, have the exclusive use of the tramway for carriages with flange-wheels or  other wh eels 
suitable to run on the rail described in the order as the rail to be used on the tramway: 
 
 Provided that nothing in this Act or in the order or any rule made under this Act shall affect 
the right of any person authorized to use a tramway or railway to pass across a tramway constructed 
under this Act with carriages having wheels suitable to run on the rail thereof. 
 
 (2) The public shall have a right to pass along or across any part of a road along or across, 
which a tramway is constructed, whether on or off the tramway, with carriages not having flange-
wheels or other wheels suitable to run on the rail of the tramway: 
 
 Provided— 
 
(a)  that this sub-section shall not apply where the tramway is constructed on land 
the right to the exclusive possession of which has been acquired by the  
promoter; and 
(b)  that the 
l
[Government] may by an order authorize the construction of a 
tramway on any part of a road with rails raised above the surface of the road, 
if it is satisfied that t he convenience of the publ ic will n ot be in juriously 
affected thereby. 
 
 15. Tolls leviable by promoter or lessee .—(1) The promoter or lessee may demand and 
take, in respect of the tramway, tolls not exceeding the limits specified in or determinable under the 
order, or, if the order contains no provision in this behalf, then such sums as may from time to time 
be fixed by the promoter or lessee with the previous sanction of the l[Government]. 
 
 
1Subs. ibid., for “until an engineer appointed in this behalf by the L.G. has inspected it and certified it to be fit for such traffic”. 
2Subs. by A. O., 1964, Art. 2 and Sch., for the dash and clauses (a) and (b) as amended by  A.O., 1949, Sch. 
 
Page 13 of 25 
 
 (2) A list of all the tolls authorized to be levied shall be exhibited, in such languages as the 
District Magistrate may direct, in a conspicuous place inside and outside each of the carriages used 
upon the tramway. 
 
 16. Carriage of dangerous or offensive goods.—(1) A person shall not be entitled to 
carry or to require to be carried, on a tramway constructed under this Act, any goods of a dangerous 
or offensive nature. 
 
 (2) A person taking such goods with him on the tramway shall, before entering the carriage, 
give notice of their nature to the servant of the promoter or lessee in charge of the carriage. 
 
 (3) A person sending such goods by the tramway shall distinctly mark their nature on the 
outside of the package containing them, or otherwise give notice thereof in writing to the servant of 
the promoter or lessee with whom he leaves them for the purpose of their being sent by the 
tramway. 
 
 (4) Any servant of the promoter or lessee may refuse to carry upon the tramway a parcel 
which he suspects to contain goods of a dangerous or offensive nature, and, if any such parcel bas 
been received for the purpose of being carried upon the tramway, may stop the transit thereof until 
he is satisfied as to the nature of its contents. 
 
 (5) Where a servant of the promoter or lessee refuses under sub-section (4) to carry a parcel 
which has been received for the purpose of being carried upon the tramway, he shall, as soon as 
may be, give notice of his refusal to the consignor or consignee if he refuses at a time when neither 
of them is present. 
 
LICENSES TO USE TRAMWAYS 
 
 17. Grant to third parties of licenses to use tramway in certain events. If, at any time 
after a tramway or part of a tramway has been for three years opened for public traffic in a circle, 
the local authority of the circle represents in writing to the l[Government] that the public is deprived 
of the full benefit of the tramway or of the part thereof, the l[Government] may, if after considering 
any statement which the promoter or lessee or both may desire to make, and after such further 
enquiry as it deems necessary, it is satisfied as to the truth of the representation, grant a license to 
any person to use the tramway conformably to this Act and to the order and the rules made under 
this Act, subject to the following provisions, namely:— 
 
(a)  the license shall be for a period not less than one year or more than three 
years from the date of the license, but the l[Government] may in its discretion 
renew it; 
 
(b)  the license shall be to use the whole of the tramway for the time being opened 
for public traffic, or such part or parts of the tramway as the l[Government,] 
having regard to the cause for granting the license, thinks fit; 
 
(c)  the license shall specify the number of carriages which the licensee shall run 
upon the tramway, the mode in which, and times at which, the carriages 
shall be run, the tolls to be paid to the promoter or lessee by the licensee for 
the use of the tramway, and the tolls, being those for the time being leviable 
by the promoter or lessee, which the licensee may demand and take for the use 
of his carriages; 
 
l
Subs. by A. O., 1937, for “L.G.”. 
 
 
Page 14 of 25 
 
(d)  the licensee and his officers and servants shall permit one person, duly 
authorized for that purpose by the promoter or lessee, to travel free of toll in 
or upon each carriage of the licensee run upon the tramway for the whole or 
any part of a journey; 
 
(e)  any provision of this Act, or of the order or rules made under this act, relating 
to the functions of a servant of a promoter or lessee shall be construed, so far 
as may be, as referring to a servant of the licensee; and 
 
(f)  the l[Government] may revoke, alter or modify the license for any cause 
sufficient in its opinion to warrant the revocation, alteration or modification 
thereof. 
 
 18. Licensee to give to promoter or lessee an account of traffic. A licensee shall, on 
demand, give to an officer or servant authorized in that behalf by the promoter or lessee an exact 
account in writing, signed by the licensee, of the number of passengers, or number or quantity of 
goods, conveyed by any and every carriage used by him on the tramway. 
 
DISCONTINUANCE OF TRAMWAYS 
 
 19. Cessation of powers of promoter and lessee on discontinuance of tramway. If it is 
proved to the satisfaction of the l[Government], at any time after the opening of a tramway for 
public traffic, that the working of the tramway, or any part thereof, has been a practically 
discontinued, for the space of three months, without a reason sufficient, in the opinion of the 
l [Government], to warrant the discontinuance, the l[Government], if it thinks fit, may, by 
notification in the official Gazette, declare that the powers of the promoter and of the lessee, if any, 
in respect of the tramway or the part thereof of which the working has been so discontinued, shall, 
from the date of the notification, be at an end; and thereupon the said powers shall cease and 
determine, except in so far as they may be purchased by a local authority in manner by this Act 
provided. 
 
 20. Powers of road-authority on cessation of powers of promoter.—(1) Where a 
notification has been published under section 19, the road-authority may, at any time after the 
expiration of two months from the date of the notification, remove the tramway or part of the 
tramway of which the working has been so discontinued, and used the materials thereof in 
reinstating the road. 
 
 (2) The promoter shall pay to the road-authority the cost incurred by that authority in 
removing the tramway or the part thereof and in reinstating the road. 
 
 (3) The cost shall be certified by an officer of the road-authority, and his certificate, 
countersigned by the District Magistrate, shall be conclusive proof as to the cost incurred. 
 
 (4) If the promoter does not pay the amount so certified within one month after the delivery 
to him of the certificate or of a copy thereof, the road-authority may, without any previous notice to 
the promoter and without prejudice to any other remedy which it may have for the recovery of the 
amount, sell and dispose of such materials of the tramway or part thereof removed as it has not used 
in reinstating the road, either by public auction or by private sale, and for such sum or sums, and to 
such person or persons, as it thinks fit, and may, out of the proceeds of the sale, pay and reimburse 
itself the amount of the cost aforesaid and of the expenses of the sale, and shall pay over the residue 
(if any) of the proceeds of the sale to the promoter. 
 
lSubs. by A. O., 1937, for “L.G.”. 
 
 
Page 15 of 25 
 
INSOLVENCY OF PROMOTER 
 
 21. Proceedings in case of insolvency of promoter.—(1) If, at any time after the opening of 
a tramway in a circle for public traffic, it appears to the road-authority or local authority of the circle 
that the promoter of the tramway is insolvent, so that he is unable to maintain the tramway, or to 
work it with advantage to the public, and either of those authorities makes a representation to that 
effect to the l[Government], the l[Government] may, if after considering any statement which the 
promoter may desire to make, and after such further enquiry as it deems necessary, it is satisfied as to 
the truth of the representation, declare, by notification in the official Gazette, that the powers of the 
promoter shall, at the expiration of six months from the publication of the notification, be at an end; 
and the powers of the promoter shall cease and determine at the expiration of that period, except in 
so far as they may be purchased by a local authority in manner by this Act provided. 
 
 (2) Where a notification has been published under sub-section (1), the road-authority 
may, at any time after the expiration of six months from the date thereof, remove the tramway in the 
same manner, and subject to the same provisions as to the payment of the cost of the removal and to 
the same remedy for recovery of the cost, in every respect as in cases of removal under section 20. 
 
PURCHASE OF TRAMWAYS 
 
 22. Future purchase of undertaking by local authority.—(1) Where the promoter of a 
tramway in a circle is not the local authority, the local authority, with the previous sanction of the 
l[Government], may— 
 
(a)  within such limits of time as may be specified in this behalf in the order, or 
 
(b)  if a time was not specified in the order, then within six months after the 
expiration of a period of twenty one years from the date of the order, and 
within six months after the expiration of every subsequent period of seven 
years, or 
 
(c)  within two months after the publication of a notification under section 19 
or within six months after the publication of a notification under section 21, by 
notice in writing, require the promoter to sell to the local authority his 
undertaking or the part thereof which is within the circle of the local authority; 
and thereupon the promoter shall sell the same upon the terms specified in the 
order, or, if the terms were not specified in the order, then upon the terms of 
paying the then value of the undertaking or of the part thereof, exclusive of 
any allowance for p ast or future pro fits of the undertaking or any 
compensation for compulsory sale or other consideration whatsoever. 
 
 (2) A requisition shall not be made under sub-section (1) unless the making thereof has been 
approved by the local authority in manner prescribed. 
 
 (3) When a sale h as been made under this s ection, all the rights, pow ers and authorities of 
the promot er in r espect of the und ertaking or p art th ereof sold, or, wh ere a noti fication h as be en 
published und er s ection 19 or s ection 21, all the rights, pow ers and authoriti es of the promot er 
previous to the publication of the notific ation in r espect of the und ertaking or p art th ereof sold, 
shall be transferred to the authority to whom the undertaking or p art has been sold, and shall vest 
in, and m ay be exercised by, th at authority in the s ame m anner as if the tr amway h ad be en 
constructed by it under an order made under this Act. 
 
1Subs. by A. O., 1937, for “L.G.”. 
 
 
 
Page 16 of 25 
 
 (4) Subject to, and in accordance with, the preceding provisions of this section, two or more 
local authorities may jointly purchase an undertaking or so much thereof as is within their circles. 
 
WORKING OF TRAMWAYS 
OWNED BY LOCAL AUTHORITIES 
 
 23. Lease of, or working of, tramway by local authority.—(1) When a local authority has 
under the authority of an order completed a tramway, or has under the provisions of this Act or of an 
order acquired possession of a tramway, it may, by a lease to be approved by the l[Government] let to 
any person at the right of user of the tramway and of demanding and taking the authorized tolls. 
 
 (2) On the determination of a lease the local authority may from time to time let the right for 
such further term and on such conditions as the l[Government] may approve. 
 
 (3) Every lease made under this section shall imply a condition of re-entry if at any time after 
the making thereof it is proved to the satisfaction of the l[Government] that the lessee has practically 
discontinued the working of the tramway leased, or of any part thereof, for the space of one month 
without a reason sufficient, in the opinion of the l[Government], to warrant the discontinuance. 
 
 (4) Notice of the intention of the local authority to make a lease shall be given in manner 
prescribed. 
 
 (5) If the local authority cannot by means of a lease obtain what it deems to be a fair rent for  
the tramway, it may itself, with the previous sanction of the l[Government] and for such term as the 
1[Government] directs, place and run carriages upon the tramway, and demand and take the 
authorized tolls in respect of the use of the carriages. 
 
RULES 
 
 24. Power to make rules .—(1) In addition to any other power to make rules expressly or by 
implication conferred by this Act, the l[Government] may make rules consistent with this Act— 
 
(a)  as to the form in which an application for an order shall be made; 
 
(b)  as to the costs to be paid by an applicant in respect of an order, and the time 
when, and the place where, those costs shall be paid; 
 
(c)  as to the payment of money or lodgment of securities, by way of deposit, by 
the applicant for an order before the order is published under section 6, sub-
section (4),  or a further order is made under section 8 the investment of 
money so paid; the  disposal of interest or dividends from time to time 
accruing due  on money or s ecurities so paid, lodged or invested; the 
application of the money or securities or the produce thereof to the discharge 
of any li ability incurred by the promoter; and the  forfeiture, repayment or 
return of the money or securities; 
 
 
lSubs. by A. O., 1937, for “L.G.”. 
 
 
Page 17 of 25 
 
(d)  as to the plans and sections of any works to be deposited by applicants for 
orders or by promoters; 
 
(e)  for regulating the use of steam-power or any other mechanical power 2[or 
electrical power] on a tramway; 
 
(f)  as to any matter specified in section 7, sub-section (2), clauses (c), (d), (e), (j) 
and (k), as a matter which may be provided for in an order, when that matter 
has not been so provided for, or has not, in the opinion of the 1[Government], 
been effectually so provided for; 
 
(g)  as to the periodical submission, by promoters, lessees and licensees, of 
accounts of traffic and receipts to the l[Government] or as that Government 
directs, and as to the forms in which those accounts are to be submitted; 
 
(h)  as to the accidents of which report is to be made to the l[Government] or as 
that Government directs; 
 
(i)  as to any matter respecting which rules may be made under this section by a 
local authority or a promoter or lessee; and 
 
(j)  generally, as to any other matter or thing in respect of which it may seem to 
the l[Government] to be expedient to make rules for carrying out the purposes 
of this Act. 
 
 (2) A local authority may, from time to time, with the previous sanction of the l[Government], 
make rules consistent with this Act and with the order and any rul es made by the l[Government] 
under this Act, for regulating—_ 
 
(a)  the rate of speed to be observed in travelling upon a tramway within the circle 
of the local authority; 
 
(b)  the use of animal power on the tramway; 
 
(c)  the distances at which carriages using the tramway are to be allowed to 
follow one after the other; 
 
(d)  the stopping of carriages using the tramway, and the notice to be given to the 
public of their approach; 
 
(e)  the manner in which carriages using the tramway after sunset and before 
sunrise are to be lighted; 
 
(f)  the traffic on roads along or across which the tramway is laid; 
 
(g)  the number of passengers which may be carried in any carriage; 
 
 
1Subs. by A. O., 1937, for “L.G.”. 
21ns. by the Indian Tramways (Amdt.) Act, 1911 (5 of 1911), s. 6. 
 
Page 18 of 25 
 
(h)  the licensing and control of drivers, conductors and other persons having 
charge of the carriages of the promoter or lessee or a licensee; and, 
 
(i)  generally, the mode of use of the tramway: 
 
2[* * * * * * *] 
 
 (3) The promoter or lessee of a tramway may, from time to time, with the previous sanction 
of the 1[Government], make rules consistent with this Act and with the order and any rules made 
under this Act— 
 
(a)  for preventing the commission of any nuisance in or upon any carriage, or in 
or against any premises, belonging to him; and 
 
(b)  for regulating the travelling in any carriage belonging to him. 
 
 (4) The l[Government] may cancel any rule made by a local authority or by a promoter or 
lessee under this section. 
 
 25. Power to impose penalty by rule. The authority making any rule under section 24 may 
direct that a breach of it shall be punishable with fine which may extend,— 
 
(a)  if the authority making the rule is the 1[Government], to two hundred rupees, 
and, 
 
(b)  if that authority is a local authority or a promoter or lessee, to twenty rupees; 
 
  and, when the breach is a continuing breach, with a further fine which may extend,__ 
 
(c)  if the authority making the rule is the l[Government], to fifty rupees, and, 
 
(d)  if that authority is a local authority or a promoter or lessee, to five rupees, for 
every day after the first during which the breach continues. 
 
 26. Procedure for making, and publication of, rules.—(1) Every authority having power to 
make rules under any section of this Act shall, before making the  rules, publish a draft of the 
proposed rules for the information of persons likely to be affected thereby. 
 
 (2) The publication shall be made, in the case of rules made by the 1[Government], in such 
manner as may in its op inion be sufficient for giving information to persons interested, and, in the 
case of rules made by a local authority or by a promoter or lessee, in manner prescribed. 
 
 
1Subs. by A. O., 1937, for “L.G.”. 
2Proviso which was ins. by A. O., 1937, of the G. of I. Act, 1935 (26 Geo. 5, c. 2) s. 181 (3) and definition of railway, has been omitted by  A. 
O., 1964, Art. 2 and Sch. 
 
 
Page 19 of 25 
 
 (3) There shall be published with the draft a notice specifying a date, not earlier than the 
expiration of one month after the date of publication, at or after which the draft will be taken into 
consideration. 
 
 (4) The authority shall receive and consider any objection or suggestion which may be made 
by any person with respect to the draft before the date so specified. 
 
 (5) The publication in the official Gazette of a rule purporting to be made under this Act 
shall be conclusive proof that it has been duly made. 
 
OFFENCES 
 
 27. Penalty for failure of promoter, lessee or licensee to comply with act or order. If a 
promoter— 
 
(a)  constructs or maintains a tramway otherwise than in accordance with the order, 
or 
 
(b)  opens the tramway for traffic, or permits it to be so opened, before it has 
been inspected and certified in manner required by section 12, or 
 
(c)  fails to observe any requirement or condition of the order for neglect or breach 
whereof no penalty has been expressly provided in the order, 
 
 or if a promoter, lessee or licensee runs a carriage on a tramway otherwise than in 
accordance with the order, 
 
 he shall (without prejudice to the enforcement or specific performance of the requirements of 
this Act or of the order, or to any other remedy which may be obtained against him in a Code of Civil 
Judicature), on complaint made by the l[Government] or by the local authority or road-authority or 
by the District Magistrate or, with the previous sanction of the District Magistrate, by any person 
injuriously affected by the act or omission, be punished with fine which may extend to two hundred 
rupees, and in the case of a continuing offence to a further fine which may extend to fifty rupees for 
every day after the first during which the offence continues to be committed. 
 
 28. Penalty for obstructing promoter in exercise of his powers. If any person without 
lawful excuse, the burden of proving which shall lie upon him, wilfully obstructs any person acting 
under the authority of the promoter in the lawful exercise of his powers in constructing or 
maintaining a tramway, or injures or destroys any mark made for the purpose of setting out the line 
of the tramway, he shall be punished with fine which may extend to fifty rupees. 
 
 29. Penalty for interfering with tramway. If any person without lawful excuse, the burden 
of Penal proving which shall lie upon him, wilfully does any of the following things namely:— 
 
(a)  interferes with, removes or alters any part of a tramway constructed under 
this Act, or of the works connected therewith, or 
 
1Subs. by A.O., 1937, for “L.G.”. 
 
Page 20 of 25 
 
(b)  places or throws upon or across any such tramway any wood, stone, refuse 
or other thing, or 
 
(c)  does anything in such a manner as to obstruct any carriage using any 
such tramway, or 
 
(d)  abets within the meaning of the Pakistan Penal Code (XLV of 1860) the doing 
of, or attempts to do, anything mentioned in clause (a), clause (b), or clause (c), 
 
 he shall (without prejudice to any other remedy which may be obtained against him in a 
Court of Civil Judicature) be punished with fine which may extend to one hundred rupees. 
 
30. Penalty for using tramway with carriage having flange wheels. If any person, except under a 
lease from, or by agreement with, the promoter, or under license from the l[Government] granted 
under this Act, uses on a tramway, otherwise than as permitted by section 14, a carriage having 
flange-wheels or other wheels suitable to run on the rail of the tramway, he shall be punished with a 
fine which may extend to two hundred rupees. 
 
 31. Penalty for evading payment of proper toll.—(1) If any person travelling or having 
travelled in a carriage of the promoter or lessee or of a licensee evades or attempts to evade 
payment of toll, or if any person having paid toll for a certain distance wilfully proceeds in any such 
carriage beyond that distance and does not pay the additional toll for the additional distance or 
attempts to evade payment thereof, or if any person wilfully refuses or neglects on arriving at the 
point to which he has paid toll to quit the carriage, he shall be punished with fine which may extend 
to ten rupees. 
 
 (2) When a person commits an offence under this section and refuses on demand of a servant 
of the promoter, lessee or licensee to give his name and residence, or gives a name or residence 
which the servant has reason to believe to be false, he may be arrested and taken to the nearest 
police-station by the servant or any person whom the servant may call to his aid. 
 
 (3) When the person is taken to the police-station he shall with the least possible delay be 
forwarded to the nearest Magistrate, unless his true name and residence are ascertained, in which 
case he shall be released on his executing a bond for his appearance before a Magistrate if so 
required. 
 
 32. Penalty for taking or sending dangerous or offensive goods without giving notice. 
If any person takes or sends by tramway any goods of a dangerous or offensive nature without 
giving the notice required by section 16, he shall be punished with fine which may extend to 
fifty rupees. 
 
33. Penalty for licensee not giving to promoter or lessee an account of traffic or giving 
false account.—(1) If a licensee fails on damand to give the account mentioned in section18, or, 
with intent to evade the payment of tolls, gives a false account when he is called upon to give an 
account under that section, he shall be punished with fine which may extend to fifty rupees. 
 
1Subs. by A.O., 1937, for “L.G.”. 
 
 
Page 21 of 25 
 
 (2) The fine shall be in addition to any tolls payable by the licensee to the promoter or lessee 
in respect of the passengers or goods conveyed by the carriage or carriages used by the licensee on 
the tramway. 
 
 34. Saving of prosecutions under other laws. Nothing in this Act shall prevent a person 
from being prosecuted under any other law for an act or omission which constitutes an offence 
against this Act or the rules made under it, or from being liable under that other law to any other or 
higher punishment or penalty than that provided by this Act or the rules made under it: 
 
 Provided that a person shall not be punished twice for the same offence. 
 
SETTLEMENT OF DIFFERENCES 
 
 35. Differences between promoters or lessees and authorities.—(1) If any difference arises 
between the promoter or lessee on the one hand and the l[Government], or the local authority, or the 
road-authority, or a person having the charge of any sewers, drains, telegraph-lines, gas-pipes, water-
pipes or other things in or on land occupied by the tramway, on the other hand, with respect to any 
interference or control exercised or claimed to be exercised by, or on behalf of, either party by virtue 
of this or any other Act, or of the order or the rules made under this Act, or with respect to the 
propriety of, or the mode of, the execution of any work, or with respect to any compensation to be 
made by or to the promoter or lessee, or on the question whether any work is such as ought 
reasonably to satisfy the 1[Government] or the road-authority or both, or with respect to any other 
subject or thing regulated by, or comprised in, this Act or the order or the rules made under this Act, 
and not otherwise expressly provided for therein, the matter in difference shall, except where the 
parties elect to proceed under 2[the Arbitration Act, 1940], (X of 1940) be settled, on the application 
of either a party, by a referee. 
 
 (2) Where the difference is— 
 
(a)  between the promoter or lessee on the one hand and the 1[Government], either 
as such or as the road authority, on the other, or 
 
(b)  between the promoter on the one hand and the local authority on the 
other, with respect to the sum to be paid by the local authority for an 
undertaking or part of an undertaking which that authority has required the 
promoter to sell under section 22, 
 
 the referee shall be the District Court within the jurisdiction of which the tramway is situate, 
or, where the tramway is within the jurisdiction of more than one District Court, the District Court 
within the jurisdiction of which the greater part of the tramway is situate. 
 
 (3) In other cases the referee shall be appointed by the 1[Government]. 
 
 (4) Except where the referee is the District Court, the powers and procedure of the referee 
may be prescribed. 
 
 
 
1Subs. by A.O., 1937, for “L.G.”. 
2Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and 2nd Sch., for “section 523 of the  Code of Civil 
Procedure”. 
 
Page 22 of 25 
 
  (5) In the case of a difference between a promoter on the one hand and a local authority on 
the other, with respect to the sum to be paid by the local authority for an undertaking or part of an 
undertaking which that authority has required the promoter to sell under section 22, an appeal shall 
lie to the High Court from the award of the referee as from an original decree of the District Court. 
 
 (6) In the case of every other difference the award of the referee shall be final. 
 
RECOVERY OF TOLLS 
 
 36. Recovery of moneys due from promoters and in certain cases, from lessees. Any of 
the following moneys, namely, any rent due to a local authority from a lessee, any penalty 
recoverable from a promoter or lessee under an order, any sum payable by a promoter or lessee under 
an award of a referee, the cost of the performance under this Act by the l[Government] or by a local 
authority or road-authority of any work required by this Act or by an order to be done by a promoter, 
and the cost incurred by a road-authority in removing a tramway and reinstating a road under this 
Act, may, without prejudice to any other remedy that the authority to which the money is due may 
have by suit or otherwise, be recovered by that authority, on application made in this behalf to the 
Collector, as if the sum due were an arrear of land-revenue due by the promoter or lessee or his 
surety (if any): 
 
 Provided that nothing in this section shall authorize the arrest of the promoter or lessee or his 
surety in execution of any process issued by the Collector. 
 
 37. Recovery of tolls from licensee.—(1) If a licensee fails to pay on demand the tolls due 
for the use of a tramway, the promoter or lessee to whom the tolls are due may, without prejudice to 
the remedy which he may have by suit, apply to a Magistrate to recover the amount of the tolls and 
the Magistrate may, after giving notice to the licensee, if possible, and allowing him an opportunity 
of being heard, proceed to recover the amount by distress and sale of any carriages or other 
moveable property of the licensee which may be found on the tramway or on premises connected 
therewith. 
 
 (2) When a licensee has failed to pay on demand the tolls due from him, the promoter or 
lessee to whom the tolls are due may seize any carriage or other moveable property of the 
licensee on the tramway or on premises connected therewith, and detain the same for forty-eight 
hours unless the tolls are sooner paid. 
 
 (3) When application is made to a Magistrate under subsection (1), he may make an interim 
order of distraint pending his final decision. 
 
 38. Recovery of tolls from passengers. Any tolls due to a promoter, lessee or licensee from 
a passenger may be recovered either by suit or, on application to a Magistrate having jurisdiction 
within any local area in which any part of the tramway is laid, by distress and sa1e of any moveable 
property belonging to the passenger within the local limits of the jurisdiction of the Magistrate. 
 
 
 
 
1Subs. by A.O., 1937, for “L.G.”. 
 
 
Page 23 of 25 
 
 SAVINGS 
 
 39. Promoter to have right of user only.—(1) Notwithstanding anything contained in this 
Act, or in an order or any rule made under this Act, a promoter shall not acquire any right other than 
that of user only over a road along or across which he lays a tramway, nor shall anything contained 
in this Act, or in an order or any rule made under this Act, exempt the promoter of a tramway, or any 
other person using the tramway, from the payment of such charges as may lawfully be levied in 
respect of the use of a road or bridge along or across which the tramway is laid. 
 
 (2) The l[Provincial Government] may, if it thinks fit, fix rates at which a promoter, lessee or 
licensee may compound for the charges payable in respect of the use of a road or bridge. 
 
 40. Saving of power over roads traversed by tramways.—(1) Nothing in this Act, or in an 
order or any rule made under this Act, shall take away or abridge any power which a road authority, 
local authority or other person has by law to break up, widen, alter, divert or improve a road, railroad 
or tramway along or across which a tramway is laid. 
 
 (2) The road-authority, local authority or other person executing any work referred to in sub-
section (1) shall not be liable to pay to a promoter, lessee or licensee any compensation for injury 
done to a tramway by the execution of the work or for loss of traffic occasioned by the reasonable 
use of any powerfully exercised for the execution thereof. 
 
 41. Saving of power of local authority and police to regulate traffic or roads. Nothing in 
this Act, or in an order or any rule made under this Act, shall affect the powers of a local authority 
or of a Magistrate or police-officer to regulate the passage of traffic along or across a road along or 
across which a tramway is laid; and the authority, Magistrate or officer aforesaid may exercise its 
or his powers as well on as off the tramway and with respect as well to the traffic of a promoter, 
lessee or licensee as to the traffic of other persons. 
 
SUPPLEMENTAL PROVISIONS 
 
 42. Promoters, lessees and licencees to be responsible for all injuries. A promoter, lessee 
or licensee shall be answerable for all injuries happening through his act or default or through the 
act or default of any person in his employment, by reason or in consequence of any of his carriages 
or works, and shall save harmless all authorities and persons collectively and individually, and their 
officers and servants, from all damages and costs in respect of injuries so happening. 
 
 43. Want of funds not a sufficient reason for default. For the purposes of this Act want of 
funds shall not be deemed to be a sufficient reason for the suspension of the construction, or the 
discontinuance of the working, of a tramway by a promoter or lessee. 
 
 44. Power to exempt from municipal taxation. When a tramway is constructed under this 
Act within the limits of a municipality, the l[Provincial Government] may exempt the animals, plant, 
rolling-stock, yards, workshops, engine-sheds, 2[electrical generating stations or sub-stations] and 
depots of the promoter, lessee or licensee, for such period as it thinks fit, from all or any municipal 
taxes leviable within those limits. 
 
1Subs. by A.O., 1937, for “L.G.”. 
2Ins. by the Indian Tramways (Amdt.) Act, 1911 (5 of 1911), s. 7. 
 
 
Page 24 of 25 
 
 45. Application by local authorities of local funds to tramways.—(1) The fund to or with 
the control or management of which the local authority of a municipality, cantonment or district is 
entitled or entrusted shall, notwithstanding anything in any enactment respecting the purposes to 
which that fund may be applied, be applicable, subject to the control of the 1[appropriate 
Government], to the payment of expenses incidental to the exercise of the powers and functions 
which may be vested in, or exercised by, a local authority under this Act. 
 
 (2) The fund shall also be applicable, with the previous sanction of the 1[appropriate 
Government], to a guarantee of the payment of interest on money to be applied, with the 
concurrence in writing of the local authority, within the limits of the local area under its control, to 
any of the purposes to which the fund might be applied by the local authority under sub-section (1). 
 
 2[(3) In this section ‘the appropriate Government’ means the Government, 3[Federal] or 
Provincial, whose executive authority extends over the local authority in question.] 
 
 46. Extension of Act to existing tramways. The 1[Government] may, with the consent of 
the local authority and road-authority and of the promoter and his lessee (if any), extend any part of 
this Act, or any rules made under this Act either with or without modification, to the whole or any 
part of a tramway constructed, or authorized by the 1[Government] to be constructed, before the 
passing of this Act, and may withdraw any part of the Act or any rules so extended. 
 
 47. Prohibition of construction of tramways except under this Act.—(1) A tramway of 
which the construction has not been authorized by the 1[Government] before the passing of this Act 
shall not, after the passing of this Act, be constructed for public traffic in any place to which this Act 
extends, except in pursuance of an order made under this Act. 
 
 (2) A person constructing a tramway in contravention of sub-section (1) of this section, 
 
 or after the passing of this Act maintaining or using for public traffic, otherwise than in 
pursuance of an order made under this Act, a tramway which was not constructed, or authorized by 
the 1[Government] to be constructed, before the passing of this Act,  
 shall be liable, on the complaint of the 1[Government] or local authority, to double the 
penalty to which a promoter acting otherwise than in accordance with an order is liable under section 
27. 
 
 48. Transfer of control on exclusion of local area from circle of local authority . If at any 
time a local area comprising a tramway to which this Act or any part thereof or any rule thereunder 
applies ceases to be included in the circle of a local authority, the functions of that authority under 
this Act, or the part thereof or the rule thereunder, and under the order (if any), shall, in respect of 
that local area, devolve on the 1[Government] or, if that Government so directs, on the local authority 
of the circle in which the tramway has been included. 
 
1Subs. by A.O., 1937, for “L.G.”. 
2Sub-section (3) ins. ibid., 
3Subs. by F. A. O., 1975, Art. 2 and Table, for “Central”. 
 
 
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 49. [Explanation and amendment of section 54 of Railway Act.] Rep. by the Railways Act, 
1890 (IX of 1890), s. 2 and Sch. I. 
 
 50. Powers of Government exercisable from time to time. All powers conferred by this 
Act on 1[the Government] may be exercised from time to time as occasion requires. 
 
 
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Date: 05-09-2024 
1The original words a “L.G.”. have successively been amended by A.O., 1937 and A.O., 1964, Art. 2 and Sch., to read as above.