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R.I-LE. Refuses to Take Spare Parts
Page 58
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A DISPUTE has Arisen with the Road Haulage Executive over the interpretation of the expression " relevant property" in Sections 45 and 46 of the Transport Act.
In one case which has beets brought to the notice of "The Commercial Motor," the R.H.E. tried to avoid acquiring new and used Albion parls to the value of about £350, because at the date of take-over, the haulier's fleet did not include a veh;cle of Albion manufacture.
It is understood that the last vehicle of this make was replaced only nine months ago and the haulier had not disposed of the spare parts. When the Transport Act was passed, he 'was running five Albion vehicles. The spare parts were purchased in the normal course of business.
The haulier accepted new vehicles of other makes as they became available, and "The Commercial Motor" is informed that had the new machines not. been delivered, the Albions would still have been running. There is also no evidence to show that the haulier would not have purchased Albion vehicles in the future. In any event, many vehicles of this make must have beets acquired by the R,H.E. from other businesses and the parts could presumably have been usefully employed.
Under Section 45 of the Act, relevant property is "property which immediately before the date of transfer was owned by the transferor and was held by him for the purposes of the undertaking." Under Section 46, the British Transport Commission is entitled to disclaim property which was acquired on or after November 19, 1945, if it be held that its purchase was not reasonably necessary for the purposes of the undertaking. or was an act of unreasonable imprudence on the part of the person carrying on the undertaking, In the case quoted, the R.H.E. does not seem to be legally entitled to refuse to take the spare parts.