Sikri, J. This appeal by si;ecial leave arises out of the fol· lowing facts. Inspector Ahuja inspected the Municipal Council, Raipur, under the Motor Transport Workers Act, 1961-hcrein· after referred to as the Act-and found that 50 transport workers, including drivers, conductors, mechanics, etc., had been employed by the Council I.Jut the Council had not be~n registered as required under s. 3(1) of the Act. He filed a complaint before the Special Magistrate and Presiding Officer, Labour Court, who issued summons to the accused, namely, the Municipal Council and the Chief Municipal Officer, Municipal Council, Raipur. The accused appeared by counsel and filed preliminary objections. Be· fore the Magistrate two points were taken: (!) that the Municipal Council was not a 'motor transpnrt undertaking' within s. 2(g) ~f the Act, and (2) that the Council was exempt under s. 38 of the Act insofar as it uses the vehicles for transporting sick or in· jured persons and for maintenance of public order, i.e., for transporting night soil and refuse of the town free of charges. The Magistrate accepted these contentions and dismissed the complaint and discharged the accused p·ersons.