Madhya Pradesh · 1980 · Act 18

Madhya Pradesh Rajya Beej Evam Farm Vikas Nigam Adhiniyam 1980

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(t# ffiH:r~f if 3;frrtr-{Uj'cfr ;Jff~ crrm >rf"fim f~ 1.fil1t<fiT;jfej; Wrr~"i ej; f~ ~ Definitions. ~ 'liT ffil.'iiir ~; R lI-ESTABU: ('Ii) ~rf"(1lfr Bfma CflT110il c(1 "'~ CfT~ f<Rwcpl *r tfw:rr ~~TT~ ~ f.:rrrrCflTloll ~m' f~ Cf)~<fT; Establishment Farm Vikas (So) a; ~ f.:rrrrCflTfCf)~tf mmrrlfl1 of; 3;fcft;:rfrrcfQ:rrfCfiffi Wl:f trflrfu [TU fCfll:rT;Jff ~; Offices and A~ ( 'Cf) CfQ I:flftf a"lT ~ f.:rrrr'liTfCf)fCfiffi mma ej; Q,iT Bzy;r '!i1, qf( fCf)f<Rlififil ~ f~ ~, fCf)Cfr;jfT Bi<rr; Share capital : ('i.9) CfQ '{ITerf'lf~ fCf)3;fQT<1'-.:Tcrlf l;1('!i'T<: lIT fqfrrfc;i;c mfcm-.:T '!i1 ~T; ("i) qT~ cfr 'lTf'f<.jl:fTer"lT \j~ ,;,;>,/.l i 9iT trllTh-=n:rT'!i1 lIT fi'fl11i ej; m,<;fi;1, sr.f'cT f<R1iT'ii a"1 mcT'tiTfmr c?r ~r:rm; (~) f'flN [m cfu r:rv!'r, F;;~r;:I'D er~ 'l;fi=Ii>rfu~erm ej; frriTfmr f~ GfR er~ \3'i'f9iT+fr~1' ;Jffif cfr mer ('fI!TI frrcftT'1; , (3'f) CfQ mer er"lT wa-"f"i'i'ifi m ..l:f~fr;:r~ 8~fCf1lli trrf \3'tTT<:~ ~ ; (z ) CfQ Qlf-q (fI!TI "<-TIerf"iBit frr<T11CfiTCJ,Brr:rvf ~cf ~ crm<: fcplf "ITz:t~ er~ q;=nif ~ ~;). Restlictions 01 CHAPT (i5) \ji'f fcrcr<:fcrr:fi, fcfcfZfJj''T a<11 >11'fob~1;:r'i~~ f\5frr'!il for; ~ f'fi'TI "l1rrT ~B' T,ff~Tf;:rL "fUR wrf~ ~T; Management. Constitution ( Disqu8Jificatic Vacation of ' Managing Di (, Casnal vacan 3, Remuneratio) ii1T'tfTU,l:TT'Wil:T iol:T~ rn~ r fCfi"\fr ""(91<1911 q,:"c:T ""TICf1 llT ~ cth: '1 ~ crnmc, r~B"m~+r T ~ >f~19l111~ ~B"mCTf;:r:p:r TI ~~''1 ;I,;ih ~ mcr.Tl:T~ 1803 (5) frr'Tl1 <ii" Cfi+f'OfTf""(m i 91CTo1l~ ;I,;[T~, ~ ~d'f, mt ~ ;H~ ~r <\iT :TIer; \ i"'~ (~) f.Hl1 <ii" 'l1~r.rTf"{if -~ f~~ 'l1rCfG'T frrp-T m worsrnfCfCTT f1fcn:rt (~;:frf(gq:i~) !fir HTlFff "'. '1' . - ~•. .If '" Cf'l/T Q"Cfl:T; >.;ih (crr) mcm:urci'H frrlfl1 ill C{)rq-'fi~rqt of. c;~Cfr'laTH'9F'f'l i f'1~, 198\ I I 1I ~,330479 --~Cj:c!il~f-aj(m,),-+fRC[ cfi m-crmrr cfi ajr~:c; 348 cfi ~ (3) cfi ~ ~ <1\'~ ~F o:cf q:;nf ~ R<n:r m'~, 1980 (~18, ~ '(980) CfiT ~ ~ {1114ql~ cfi >rrf~ ~ ~C1~- 'j;cffif ::rcnmrcr fcnm ;;mn ~, )' Q. MADHYA PRADESH ACT No. 18 OF 1980 THE MADHYA PRADESH RAJYA BEEJ EVAM FARM VIKAS NIGAM ADHINIYAM, 1980. TABLE OF CONTENTS ,t'cdions:- CHAPTER I-PRELIMINARY 1. Short title and extent. 2. Definitions.I I HAPTER lI-ESTABLISHNlENT OF NIGAM, ITS CAPITAL AND MANAGEMENT. 3, Establishment and incorporation of the Madhya Pradesh Rajya Beej Evam Farm Vikas Nigam. Offices and Agencies. S. Share capital and share bolders. 6. Restrictions on transfers of shares. CHAPTER Ill-MANAGEMENT OF THE NIGAM. 7. Management, 8. Constitution of Board. 9. Disq ualification for being a Director of the Nigam. 10. Vacation of office by nominated directors. 11. Managing Director. 12. Casual vacancies in the office of the 'Managing Director. 13. Remuneration of directors. 18D4 Sections ; 14. Meetings of Board. 15. Committees of the Board. 16. Member of Board or Committee thereof not to participate or vote in certain cases. - 17. Appointment of officers and other employees etc. 18. Condition of service of employees transferred to the Nigam from Govern. An ment Department. CHAPTER IV-BUSINESS AND BORROWING OF THE NIGAM 19. Business which the Nigam may transact. 20. Borrowing by the Nigam. 21. Other source of funds. Rep CHAPTER VI-PR7VENTIVE ACTION AND PENALTIES Nig 22. Execution of works. 23. Power to' enter upon a land holding. "1.J....J> .,tc CHAPTER VI-PREVENTIVE ACTION AND PENALTIES .. 24. Penalties for obstruction of work. CHAPTER VII-Fn~ANCIAL ESTl1Y1ATES, FUNDS, ACCOUNTS AND AUDIT. 25. Submission of programme of activities and financial estimate. 26. Funds of the Nigam. 21. Allocation of surplus profit. 28. Accounts and audit. 29. Depreciation reserve. 30. Returns. CHAPTER VIII-MISCELLANEOUS 31. Power of State Government to' give directions. 32. Transfer o~ Government employee to the Nigam. 3:;. Liquidation of the Nigam. 34. Indemnity' of Director. 35. Defects in appointment of directors not to invalidate acts etc. 36. Protection of action under the Act. 37. Declaration of fidelity and secrecy. 38. Delegation of powers. 39. Money due to Nigam recoverable as arrears of Land Revenue. 40. Power of the State Government to' make rules. 41. Power of the Nigam to make regulations. -. (. t te. in cedaii Jill Govern, I \ 1805 MADHYA PRADESH ACT No. 18 OF 1980. THE MADHYA PRADESH RAlYA BEEl EVAM FARM VIKAS NIGAM ADHINIYAlVI, 1980 <{ece~vedthe assent of the Governor on the 4th Novcm,ber 1980; assent first published in the "Madhya Pradesh Gazette" (Extra-ordinary), dated the 6th November 1980.J An Act to establish a Corporarion for the execution of projects with a view to developing productiou of quality lseeds and setting up developing and running agricultural farms, to provide for better and larger agricultural production and for matters connected therewith or incidental thereto. Be it enacted by the Madhya Pradesh Legislature in the Thirty-first Year of the Republic of India as follows :- CHAPTER I-PRELIMINARY 1. (1) This Act may be called the Madhya Pradesh Rajya Beej Evam Farm Vikas Short title and extent.Nigam Adhiniyam, 1980. (2) It extends to the whole of the State of Madhya Pradesh. 2. In this Act, unless the context otherwise requires,- (a) "Bank" means a banking company as defined in the Banking Regulation Act, 1949 (No. 10 of 1949) and includes :- (i) the State Bank of India constituted under the State Bank of India Act, 1955 (No. 23 of 1955) ; (ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (No. 38 of 195.9) ; (ill) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (No. 5 of 1970); (iv) the Agricultural Refinance and Development Corporation constituted under the Agricultural Refinance and Development Corporation Act, 1963 (No. 10 of 1963) ; (vi) il/~.. t.J f',. (vii) , i (v) the Agricultural Finance Corporation Limited, a company incorporated under the Companies Act, 1956 (No. 1 of 1956) ; a financing bank as defined dn the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961}; and any ot!her banking institution that may be notified by the State Government to be a bank for the purpose of this Act. (b) "Beej or seed" means seeds of food grains, fibre crops, plantation crops, oil seeds, commercial crops, vegetables, fruits and fodder and includes seedlings, tubers, bulbs, rehizomes, roots or stem cuttings (rooted or unrooted) grafts and all other vegetatively propagated plant materials; (c) "Board" means the Board of Directors of the Nigam constituted undersection 8 ; (d) "Financing Institution" means any statutory corporation or other body corporate established in India which has one of its. objects the financing of agriculture in India and which is notified, by the State Government to be a financing institution for the purposes of this Act; (e) "Land" shall have the same meaning as assigned to tha.t expression under the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959); Defmitions, 1806 Evam FaJ;1Il Vikas Nigam(f) "Nigam" means the Madhya Pradesh Rajya Beej established under this Act; fop (g) "Farm" means an area of land belonging to the Nigam or not which is use.'> or proposed to be used for agricultural farm for the production of seeds; (h) "Project" meIDS any project or scheme for seeds and farm development approved under section 25 ; (i) "Regulation' means regulations made by the Nigam under section 41 ; (j) "Works" includes any work relating to organisation, production, conservation, development or exploitation of seeds IDd agricultural farms to be executed under a project under this Act; (k) "Year" means the financial year. CHAPTER II-ESTABLISHMENT OF NIGAM, ITS CAPITAL AND MANAGEMENT Establishment 3. (1) With effect from such date as the State Government may, by notification and incorporat- appoint, there shall be established for the purposes of this Act a Nigam to be known as tion of the 1 1\ '1dh Ph' B' E F Vik N'Madhya Pradesh t ie rv. a ya radesh Rajya eej vam -arm as igam, Rajya Beej Evam Farm Vikas Nigam. Olfio sand Agencies. . Share capital and share holders. (2) The Nigam shall be a body corporate with the name aforesaid, having perpetual succession and common seal with power, subject to provisions! of this Act to acquire, hold and dispose of any property and tQ contract, and may, by that name sue' and be sued. 4. The head office of the Nigam shall be .at Bhopal and it may, with the previous approval of the State Government, establish offices or agencies at other places. r- (1) The' authorised capital of the Nigam shall be ten crores of rupees, divided in ten thousand shares of rupees ten thousand each. Witl» the previous sanctioa of the State Government, the first issue of shares shall be made by the Nigam. (2) The State Government may enter into an agreement with the Central Govern nt or any of its related agencies for subscribing to the share capital of ihe Nigam and SU~,~ct to such agreement the State Government and the Central Government or any of its related agencies shall subscribe in such proportion as may be mutually deteiiiiined to' the: share capital to be issued Jn the first; instance. The Nigam may unless otherwise agree~ issue at any time or from time to' time, fully paid shares to' the State Government of the value of any plants and machinery or fixed assets which may be acquired by it from the State Government. _ (3) Subsequent issues of share capital may be subscribed by the State Government a:'__ the Central Government or any of its related agencies as may be mutually agreed upon between both the Governments and the related agencies aforesaid. (4) The State Government may, from time to time, increase the aurn:orisea capitm of the Nigam to such extent as the State Government may deem necessary. RestrIctions on 6. The shares of the Nigam shall not be transferable transfers of Government and the Central Government or the related shares. accordance with the regulations made in this behalf. Management except as -between the State agencies concerned and in CHAPTER III-MANAGEMENT OF THE NIGAM 7. (I) The general superintendance, direction and management of the affairs an business of the Nigam shall vest in the Board of Directors which may exercise- all sue powers and do all such acts and things as may be exercised or done by the Niga>' under this Act. Nigam :'~ Js· use, ::-~ seeds; opment rvation, xecuted ification own as erpetual .J.' :cf l, ~acquire, sue .and jrevious zided in of the ernment, su t , related e share .d, issue of 'the ~ rom the \ ,.. ernmeut . agreed capItal eState and in .airs and all such .e Nigam 1807 '~ ') The board of directors, in discharging its functions" shall act on business prin-, il;. r,', I regard being had to public interest and shall be guided by such directions on :: ~~~ons of policy as may, from time to time, be given to it by the State Government the Nigam shall consist of the following Constitution -, 'of Board. i " I '":'1 I'p"~';im ,'.-: -. i .': ,'j.!~ll (1) The Board8. namely of Directors of A-EX-OFFICIO DIRECTORS (i) the Minister-in-charge of Agriculture, who shall be Chairman ; (ii) the Secretary to Government, Madhya Pradesh, Agriculture Department, who shall be Vice-Chairman; (iii) the Secretary to Government, Madhya Pradesh, Finance Department or his nominee not below the rank of Deputy Secretary; (iv) Director or Agriculture, Madhya Pradesh; (v) Director Research, Jawaharlal Nehru, Krishi Vishwavidyalaya, Jabalpur; (vi) the Registrar of Co-operative Societies, Madhya Pradesh; . (vii) the Managing Director; B-NOMINATED DIRECTORS (viii) one Director to be nominated by the Stale Government to represent banks and financing institutions; (ix) one Director having special knowledge. or practical experience in respect of agriculture and allied subjects to be nominated by the State Govemment ; (x) two Directors having practical experience in respect of organisation, management of Farms and production and marketing o( seeds to. be nominated by the Stale Government. (2) A nominated Director shall hold office during the pleasure of the authority nomi- nating him but the term of his office shall not exceed three years, from the date 61 noti- fication of his nomination. A nominated Director may, however, resign his office at any time, by writing a letter under his hand to' the Chairman, of the Board and tho resignation . shall be effective frym ~ date of its receipt. (3) In the event: of the death, resignation or disqualification of a nominated Director, /he vacancy shall be filled up by nomination as soon as possible. Vi - 9. (1) A person shall be disqualified for being nominated or appointed as, being a Director of the Nigam,- and for Disqualifica- tion for being a Director of the Nigam. (a) if he is, or at any time has been, adjudicated insolvent or has, suspended pay- ment of his debts or has compounded with his creditors; or (b) if he is of unsound mind and stands so declared by a competent court; or (c) ,jf he is or has been convicted of any offence which, in the opinion of the; State Government, involves moral turpitude; or (d) if he is removed or dismissed from the service of the Government or a Cor- poration owned or controlled by the Central .povernmenl! or the State Government; or (I:') if he acts in any manner prejudicial to the interest of the Nigam or has any interest In ., body. institution or organisation whose activities are pre- judicial to the interest of the Nigam. 1808 Vacation of office by nomi- nated directors. Managing Director. Casual vacan- cies in the office of the Managing Director. Remunera- tion of direc- tors. Meetings of Board. (2) If a director of the Nigam becomes subject to any of the disqualificationr. .D""'~,,, tioned in sub-section (1) he shall cease to be a Director of t!lie Nigam with effe '~' the date of notification: to this effect by the State Government, .:..-;- !",;~~....,.-t ;~ 10. (1) If a nominated director,- (a) becomes subject to any of the disqualifications mentioned in section 7; or (b) is absent without leave of the Board from more than three consecutive meet- ings thereof without cause sufficient in the opinion of the State Govern- 'ment to exonerate his absence. the State Government may declare that the said director shall be deemed to have vacated his office from the date of notification to this effect and thereupon his seat shall become Vacant. (2) A Director whose office has been declared vacant under sub-section (1) shall not be eligible for renomination to the Board as a Director or for eluployment in the Nigam in any capacity. 11. (1) The Managing Director shall be appointed by the State Government and he shall- (i) be a whole time officer of the Nigam ; (ii) exercise such powers and perform such duties as the Board may delegate or entrust to him; (iii) receive such salary and allowances and be governed by such terms and condi- tions of service as. the Nigam may, with the approval of the State Government, determine: Provided that the first Managing Director shall receive such salary and allowance and shall be governed by such terms and conditions of service as the State Government may determine. (2) The State Government may at any time remove the Managing Director from office without assigning any reason therefor. 12. If the Managing Director is by infirmity or otherwise, rendered incapable of carrying out his duties or is absent on. leave or otherwise, in circumstances not involving the vacation of his appointment, the State Government may appoint another person to act in. his place during his absence. "'r."'V'" .~,~.. • _. "-'~.'I";- • ,":! ~~~.J.;..,;;~.~.;.~ .. ~.. (3 (~ on ap) Board, right tl 1: such n functio (~ directo of tihe (3 by the other v ~.: indirec ';~oard the dis case ill decisio clarific 1~ necesss (2 conditi regulat (3 appoin officers (4 ment D '(1 b. .,' . ~rt\ r1!W ( 13. Directors, save as otherwise provided ill section 11 shall be paid such fees «;"Y- , , ,J \ allowances as may be provided by regulations for attending tihe meetings of-7the Board or of any of its committees and for attending to any other work of the Nigam : at the '> " any of Provided that no fee shall be payable under this, section to' the Chairman, Managi-« and an Director or any other Director who is a Minister or an Officer of the State Governme II serve iJ or of the Central Government. (2 14. (1) The Board shall meet at such times. and places and shall observe such rules the Ni! of procedure in regard to transaction of the business at its meetings as may be provided by regulation : Provided that the Board shall meet atleast once in every three months 'process (2) The Chairman' of the Board or, in his absence, the vice-Chairman, or in the absence search. of both the Chairman and the vice-Chairman, any other director 'chosen by the directors ment a, growenpresent at the meeting shall preside at a meeting, I _':1; or ive meet-, Govern- , ~ vacated 1 become; (1) :11I it in the neat and 180 9 (3) All matters which come up before any meeting of the Board shall be decided by ~ ';ority of the votes of the directors present and voting and, in the event of equality of ;,~/[b0 person presiding shall have a second or casting vo,te, (4) In case the Board deems necessary to seek the advice or opunon of any person on any particular matter, the Board may invite such person to attend any meeting of the Board, such an invitee shall have a light to participate in any discussion but shall have no right to vote at the meeting. 15. (1) The Board may constitute one or more executive committees consisting of Committees such number of Directors as may be provided by the regulations' for discharging such of the Board. functions as,may be delegated to it: by the Board. (2) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons, as thinks fit, for such purposes, related to the activities of the Nigam, as in may decide. ' (3) The members of a Committee other than, the Directors of the Nigam, shall be paid by the Nigam such fees and/or allowances for attending! its meeting and far attending 'to any other work of the Nigam as may be provided by regulations. 16. A Director of the Nigam or a member of a Committee who has any direct or Member cri ~ , indirect pecuniary interest :in any matter coming up for consideration at a meeting of the Board or Com-if~-, , . . , . mrttee thereof"'1' ,'''>Poardor a committee thereof, shall disclose the nature of IDS' interest .at such meeting and not to partici- eg ate or the disclosure shall be recorded in the minutes of the Board or of 'the Committees, as the pate ort vote , b th dir b hall ak . d liberati 111 eel' aincase may e, and e ector or mem er s not t e any pan ill any e 1 eration or cases, decision of the Board or the Committee with respect to that matter except to furnish such d condi- ' clarification as may be required of him. he State Ilowance -emrnent or from oable or I nvolving t erson to , "t .. 'ees a::-J ~ Bo-ard ::;h rules ided by absence lirectors 17. (1) The Nigam may appoint such officers and other employees as it considers necessary for the efficient performance of its functions. (2) Every person employed by 'the Nigam under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may lie determined by regulations, (3) The Managing Director acting on behalf of the Board shall be deemed to be the appointing authority and shall exercise all powers of such an authority in respect of all officers and other employees employed by 'the Nigam. (4) An appeal shall lie to the State Government or such authority as the State Govern- ment may specify in this behalf against the order of Managing Director in such manner as fi}.'1.Y be provided by Regulations. e ' ',; .J Appointment of officers and other employees etc. 18. (1) Subjecn to the provisions of section. 3.<-any official transferred to the Nigam, Condition or . ' b h ' ser Ice of em-at the request of 'the NIgam, permanently or temporarily y t e State Government from ployees trans- <my of their departments, shall enjoy all such privileges of gratuity, pensionary benefits f,erred to the and any other benefits to which that official would have been entitled had he continued to g~gv~~~~~t serve in his parent department in the State Government. Department (2) An official specified in sub-section (1) shall, during the tenure of employment in the Nigam, be subject to 'disciplinary control of the Nigam, CHAPTER IV-BUSINESS AND BORROWING OF TIffi NIGAM 19. (1) The Principal business of the Nigam shall be production, procurement, Business which processing and distribution of seeds, development and running of farms, conducting re- tthe Nigt'am may. ransae. search and development in. seed production, processing, preservation, installation, manage- ment and operation of .processing plants s.torage and testing facilities and rendering to seed growers such other assistance as may be considered necessary to improve s-eed production. 1810 . ' ,~ rTT t (2) To carry out the duties specified in sub-section (1) the Nigam shall prep~~.\~ ~, sta:e.me.nt of programme of work listing out the projects prepared for cli£i:erent acti" 1\ WhIChare to be executed during the next year. .• J. "laten (3) The State Government may specify any other works for execution in addition to 19 ther the programme submitted by the' 'Nigam. (2) Borrowing b~ the Nigam. 20. Aet,- (1) The Nigam may for the purpose of carrying out its functions under this lO~ (3) Other source of funds. (a) with the prior approval of the Slate Governmenf issue and sell bonds and ork ar debentures. and other securities, carrying interest; ext ye~ (b) borrow money and accept deposits! from Central Government, the Stale Gov- (4) emment, any bank or financing institution and with the approval of the State ich me Government, from a a corporate body or from any other person. " .m (?' S bi t t h di . . . h G fi fa v ernr-J U jec 0 sue can tions and restrictions as the State overnment may deem ] to impose, it may guarantee 'the bonds and debentures and other securities issued under 26 clause (a) of sub-section (1) and the loans and deposits raised! by the Nigam under clause r : (b) of sub-section (1) as to the repayment of principal and payment of interest thereon ana igam - and incidental charges. ,. (2) ,,<!i. (3) Without the approval of the St;ate Government the total borrowing of the Nigairi ~ense~ under sub-section (1) shall not at any time, in the aggregate exceed four limes the amount (3) of the capital subscribed by the State Govemmenr under section 5. peratio tate G 21. (1) The Nigam may receive remuneration for it's services including costs 01 works reincurred by the Nigam under this Act,_and accept gifts, grants, subsidies, donations 27. or anY,benefactions from the State Government or any other Goverment or agency or f~oriilear sue any person. ) . . b '1' 1 d . hi _. (2)(2 The Slate Government may also transfer to the NIgam, ui dings, an, mac illerYill ollie: or any other movable or immovable property for the use of the Nigam on such terms' andlllder tl conditions as the Slate Government may deem fit. J' '11a1 CHAPTER V-EXECUTION OF PROJECTS 28. other bl the pres as on tl Execution of works. 22. The Nigam may execute the works itself or through any other agency. Power to enter 23. (1) Such ollicers, servants and other persons as may be anthcrised by the Nigammit~ed 1 upon a land .' ° '~ • . • • - fiai'rl.;lO' , holding. or the State Government ill this behalf, may at any itme, after grving the land ho!'] 1: r tOf:.meil 0 reasonable notice? enter upon his iho~di.ngand carry out surveys aut! investigations and all such works and things as may be necessary in connection with the execution of the projects, (2) heme k d tho A State Gsc erne or wor un er is ct. . . . . . f - . (3) (2) The staff of the Nigam shall while acting or 'purportIng to act ill pursuance 0 anycopy th of the provisions of this Act he deemed to be public servants with.n the meaning of sec1llynt ai tion 21 of the Indian Penal Code, 1860 (No. 45 of 1860). copies 1 CHAPTER VI-PREVENTIVE ACTION AND PENALTIES. O(4) oerusal Penalties for 24. Any person who obstructs the execution of any work or causes any damage tc 29 obstruction of auv work, being executed by the Nigam.. shall on conviction. be punishable with imprisonyea~, CIwork. _. . . straizht rnent for a term which may extend to six months or with fine which may extend to ollidivi&n.§ thousand rupees or with both. - ~~~. ' . ~ t' Je& , ao 1"", _ 2 -, (1) The Nigam shall, in respect of every year submit to the State Government, Submission of : . - statement of programme of its activities together with annual financial statement show- ~~fi~~=:n~f' .ddition to' g therein in detail the estimated receipt and expenditure of the Nigam for that year. financial estl.•... mate. (2) The Nigam may, with the prior approval of the State Government, revise or under this o9ify the statement and estimate referred to in' sub-section (1). (3) The Nigam shall submit each year 'to the' State Government the programme of ork and details of the project for different activities which are to be executed during the xt year. \ I; I , ] oonds and ltate Gov- E the State y deem fib ued under der clause ereon an<JJ (4) The State Government may, either approve the projects, or may approve ill with , ch modifications as it may consider necessary or may return ~t to the Nigam. to' modify e same or to prepare a fresh project in accordance 'with such directions as the State overnment may deem appropriate. 26, (1) The Nigam shall have and maintain its own funds" and all receipts of the F1:lnds ot the igam shall be carried thereto and all payments by 'the Nigam shall be made therefrom. NIgam. , (2) The funds of the Nigam shall be applied by it for meeting all administrative he Nigairi-(-:;:.,enses of the Nigam and for carrying out the purposes: of this Act. le amount (3) The Nigam may deposit with any bank: such sums aSImay be needed by it for its. 'perations and the surplus may be invested in such manner as may be approved by the tate Government. costs of:7 ::> donations All ti f Y O -r'from- 27. (1) The Nizam shall establish a reserve fund to which shall be credited every oca ion or.~ surplus profit. ear such portion of its annual net profits as, the Nigam thinks fit. machinery terms' and (2) After making provision for such reserve fund and for bad a,nd_doubtful debts and other matters which are usually provided for by companies registered and incorporated nder the Companies. Act, 1956 (Central Act 1 of 1956) the balance of its annual net pro .. ts shall be paid to the State Government. 28. (1) The Nigam shall cause to be maintained proper books of accounts and such ~L~J?t~ntsand ther books as the rules may require and shall prepare an annual statement of account in ~ prescribed manner. The books of accounts of the Nigam shall be balanced and closed " , . S Oil the 3'lst day of March each year. The annual statement of accounts shall be sub- ~he Nigam itted to the Board of Directors within six months of the close of the financial year, nd botf.;!;S i(: i'g which the Managing Director shall explain the delay and apply to the$Tate Govern- wu· . \e~lt for permitting the submission in another three months at the most. 1S and a . ~projects, (2) The Nigam shall cause its accounts to be audited annually by such person as the tate Government may direct. f -, 1 (3) As soon as the accounts of the Nigam have been audited, the Nigam shall send a lce 0 any I h f h . h . h - ... ._ popy t ereo toget er wit a copy of the report of the auditor thereon to the State Govern- 19 of see- Fent and shall cause the accounts to be published in the prescribed manner and place . copies thereof on sale at a reasonable price. , ./ (4) The Nigam shall comply with such directions as the State Gove~ment may after r erus31 of the report of 'the auditor think fit to issue. Iamage to 29. The Nigam shall create a depreciation reserve and, shall, at the end of every Depreciation imprison-] 'ear, credit to such reserve from its revenue an amount calculated in accordance with the reserve. .nd to oneis~r~~ht li~e method of depreciation, jhat is to say, such an' amount as is arrived at by. ,_rVldmg minety per cent of the original cost of the assets, after taking into account the sums I 1812 BetUl"l:l& already written off and set aside in the books of the Nigam, by the prescribed pe~od in respect of such assets : .J Provided that the contribution in respect of any asset to' we: depreciation reserve under ibis section shall cease at the end of the prescribed period Or when the asset ceases to. be used by the Nigam, whichever is earlier : Provided further that if in any year it is not practicable fully to comply with the provisions of this section, the amount by which the sums, actually credited falls short of the amount required under this section in respect o.f that year, shall be. carried forward and together with simple interest thereon at the Reserve Bank rate ruling at the beginning of that year, shall be credited to the, said reserve as SOO11( as it is found possible so to do : Provided also that the accumulations, in the depreciation reserve may be invested in the business of the Nigam or utilised for repayment: of the principal of any loan raised. under sub-section (1) of section 20 or for repayment of sums paid by the State Governmen under sub-section (2) of the said section. 30, (1) The Nigam shall furnish to the Slate Government, from time to time' such returns as the State Government may, require. (2) The Nigam shall, in respect of each year, furnish to the State Government, witbi).n a period of three months from the date on which the annual accounts of the Nigam ~'e closed, a copy of 'the balance sheet as on the close of that year together with a profit and 10s81account for the year and a report 011 the working of thq Nigam including its policy and programme during the year. , . (3) The State Govesnment shall, as soon as may be after the receipt of such report cause such report and the audit report received under section 28 to be laid on the table of Legislative Assembly. CHAPTER VIII-MISCELLANEOUS r(,. Power 01 State 31. (1) In the discharge of its. functions under this Act, the Nigam shall be gui. Government to b h directi . . f li . lvi bli' t t th St t G tgive direc- Y sue ecuons in matters 0 po cy invo ving pu C ill eres as e a e overnmen tlons, may give to it in wribing and if any question arises whether, the direction: relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final. Transfer of Government employee to the Nigam. (2) Where the Nigam incurs any loss directly in consequence of carrying out the directions of the State Governmenn under sub-section (1) the same shall be made goo' ..1y the Stale Government. 32. (1) On and after the establishment o~ the Nigam, the State Government may, [' from time to time, direct than the services of such of 'the:existing! officers and servants! of the State Government! in Agriculture Department who in its opinion, are rendered surplus, to its . requiements, shall stand terminated and their posts shall stand abolished, from such date as may be specified by it (hereinafter in this, section referred to as, the appointed date), and shall on that date (which may be different for different officers and servants) become the officers or servants of, the Nigam. (2) Every permanent or temporary employee of the State Government in respect of whom a direction is issued under sub-section (1) shall, on and from the appointed date, i be a permanent or temporary employee of the Nigam, as the case may. be, against a per- t manent or temporary post, which shall stand created in the establishment qf the Nigam with effect from the apoointted date. "j , ,.1 :-' in -er ie te }f .d 10- <=> In d \t I " b. ',' j I !1 e d ~ \' ,J [ ..• 1 (3) Any officer or servant so 'transferred shall hold office under the Nigam by the same tenure, at the same remuneration and upon the same other conditions of service and with the same rights and privilages as to pension, gratuity, provident fund and other matters as would have been admissible to him on the appointed date if this Act had not come into force. Any service, rendered by him under the State Governmnet shall be deemed to be service rendered under the Nigam. He shall continue to serve under the Nigam until his employment under the Nigam .is duly terminated or his remuneration or the conditions of service are duly revised or altered by the Nigam in pursuance of the law which for the time being governs his condition of service : Provided that the conditions of service applicable immediately before the appointed date to the case of any such officer or servant shall not be varied to his disadvantage, except with the previous approval of the State Government. (4) The sums standing to-the credit of the employees referred to ill sub-section (1) in any person, provident fund, gratuity or other like funds constituted Iorthem shall be transferred by the State Government to the Nigam along with any accumulated interest due till the appointed date and with the accounts relating lo such funds. On and after the 'appointed date, the Nigam shall, to the exclusion of the; State Government, be liable for "payment of pension, provident, fund; gratuity or other like; sums' as may be payable to such employees at the appropriate time; in accordance with the conditions, of their service. (5) Nothing contained in sub-section (1) shall apply to any employee who by 'notice in writ.ing given to the State Governemnt within two months from the appointed date or fuch extended time as the State Government may, by general or special order, specify, mtimate his intention of not becoming or continuiing as an employee of the Nigam. Where such notice is received from any employee-s- .. (a} in case of a permanent employee, he shall be allowed to retire giving him the benefit of pension, gratuity, provident fund and other benefits accrued to him had 'he retired from the Government service on the appointed date; (b) in case of a temporary employee, his service shall be terminated after giving him notice or remuneration in ileu of notice asI per the existing service rules of the State Government. (6) Notwithstanding anything contained ll\ the foregoing sub-sections- , (a) no person employed in the Agriculture Department against whom any dis- ciplinary proceeding is pending or to whom any notice or order of termina- tion of his service or compulsory retirement has been issued before the date of commencement of this Act shall be transferred to the Nigam, and such person may be dealt with after the said date in such manner and by such authority as the State" Government may, by general or special order, specify in this beJhalf; (b) if the services of any employee of the State Government stand transferred under sub-section (1) to thei Nigam, the Nigam shall be competent after such transfer to take such disciplinary or other action as it thinks fit against or in respect of such employee having regard to any act or omission or conduct or record of such employee while he was in service of the State Government. 33. The Nigam shall not be placed ill liquidation save by an order of the Slate t~iU~j~~of 66vemment and in sucb manner as it may direct... 34. (1) Every director of the Nigam shall be indemnified by the Nigam against all me~~~~::Yof losses and expenses incurred by him, in or in relation to the discharge of his duties except Such as are caused by bis own wilful act or default. 181--1 (2) A Director of the Nigam shall not be responsible for .any otber director Or f any officer or other employee of the Nigam for any loss. or expenses resulting to 'the Niga from the insufficiency Or deficiency of value of, or title to any property or secuf acquired or taken on behalf of tbe Nigam or the insolvency or wrongful act of any deb] or any person under obligation to the Nigam or anything done in good faith in-j execution of the duties of his office in relation 'thereto. - Defects in appointment of directors not to invali- date acts etc. 35. (1) No act or proceeding of [be Board or of any committee of the Board sh: be invalid merely by reason of- (8.) any vacancy in or defect in the composition of tbe Board or Committee, the case may be; or (b) any defect in the nomination of any person acting as a Director ot the Niga or member of tbe Committee; or (c) any defect or irregularity in the procedure of the Board or Committee, the case may be. (2) No act done by any person acting in, good faith as a director of the Nigam. ( as a member of a Committee of the Board shall be deemed to' be; invalid merely on tl ground that be was disqualified to be a director or a member Or that there was any defe ill his appointment. Protection of action under the Act. 36. No suit or other legal proceeding shall lie against the Nigam or any othe person authonised by the Nigam to discharge any functions under this, Act for any 10: or damage caused or likely to be caused by anything which is in good faith done c intended to be done in the pursuance of this Act. Declaration 37. Every director, member of the Board or Committee, auditor, Officer or othe ~:c~~~:.itY and - employee of the Nigam or an employee of the State Government whose services ar utiliscd by the Nigam, shall before entering upon his duties, make a declaration of fidelit and secrecy in the form prescribed by regulations. Delegation o~ powers. 3($. The BOJrd may delegate to any committee of the Board or to the Chai, ..u 0 Managing Director or any other officer of the Nigam such of its powers and function under this Act as it may deem necessary. Money due to 39. All moneys recoverable by the Nigam under this Act or under any agreemen Nigam recove- which provides for recovery of any amount payable thereunder as arrears of rand revenu rable as arrears - '. of Land shall on :1 certificate signed by the Managing Director or any person authorised by hin Revenue. in this behalf be recoverable as arrears of land revenue. Power of the 40. (1) The State Government may make rules not inconsistent with the provision: State Govern-ment to make of this A ct to give effect to the provisions of this Act. rules. (?) All rules made under this section shall be laid on the table of the Legislative Assembly. PTower of the 41. (1) The Nigam l11:1Y,with the previousapproval of the State Government make NIgam to make . .. . . ... .. .. regulations. regulations not inconsistent WIth this Act and the rules made thereunder, providing for all matters for which no rules have been framed under this Act and for which provision I is necessary or expedient for the purpose of giving effect to the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for the following matters, namely :- (a) the manner in which .and the conditions subject to which the shares of the . Nigam shall be transferable; J ' I i/1 I 1 1815 ,1 allowances that may be paid to. the. directors ;~_:s ti d 1 -f the meetings. Df the Board Dr of any committee CDn-imes an paces ts: . tit t d d till At' the procedure to. be. followed at such meetingsS 1 U e un er S c ana .~, .. . . . --'>n<;ac.tion of business :including the quorum necessary Dr I1-cu._. _ ' (d) . +-vittee and the fun-the number of directors constituting the executive comu., ctions which such committee shall discharge ; the (e) the functions which any other committee may discharge under this Act; (f) the fees and allowances that may be paid to the member of a commitTee other than directors; (g) the manner in which appeal shall lie to the State Government Or the specified authority; (bJ) delegation of powers and functions of the Board to' the committees. or to the Chairman, the Managing Director and other officers of tfieNigam"; (i) the manner and terms of issue and redemption of bonds and debentures an other securities by the Nigam; (j) the manner and conditions subject to which the Nigam may borrow moneys ; (k) the form and manner in which the balance sheer and accounts of the Nigam shall be prepared and maintained; (1) the form of returns statements and estimates required to be prepared under this Act; (m) duties an.d conduct, salaries, allowances and conditions. of service of the em- ployees of the Nigam;. (0) establishment and management of provident fund Dr other benefit funds for employees of the Nigam; and (D) generally' for the efficient conduct of the affairs of the Nigam. ';;=n ITii, i;Fl >.[:]1" -:ifF] 'f; f;1T( 1~'FFl '-Ii i1f~ -'f : ~. '>1'-fQT('f--- 5 0 5 /:S~;:;I{. it 122 (~. fr' ( 3·n1I~1JI ) ~~~cb1TW ';f. :202 77-tT'JFr.--ll';l./'.f~cl fiHFT IT'H f.1Y~ T. f;prrr (;4 T. J'~-i;f: 'Tfi"R' .q Tf~'9T -w;;:rcf~ ~ m , .... ,; :":'1 ('l"'il;;:r) f·;·; ..... 1":':: (-111[7 c,l rn l"S-C).-··-' (Tn·l;r'i:r·).-;-;rTT 1.' f;::-rr'JT 1!lR2 nT<:: 1Ocrrc;(; q-'/' .. ;, :;r;r::fj-JfrIl11:t TEf T f;:r:i 'FI:lj,n h7[f >rf7T1 ~. .- qr. CUT. r:rn.f.T, '1f~-;:ri 1191>!~VT r<[,:IT-i ~7;"', :~ "7 ~ \ 1 :tJ}", 'JIIJ'. 'l~:qJ:0IJIp.:1 1.:1 :':;J:j Ih Ie!. di" ;' ..J :11 kll?·',!- 1 :).I,.~q"~.;JJIlJ (u) 70If,:J .. (6) Jj,llihE: (:h) _"".' ..1 ~~ D..'.r. J:~','IiJI~n!t'(, toJt '.' . !!.r"l}IJJi Ur. ~ J:U j:. 'h'IlII', J';J~lI't l'H~!J.! 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