LexThe Himachal Pradesh Ex-servicemen Corporation Act, 1979
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION
ACT, 1979
ARRANGEMENT OF SECTIONS
CHAPTER- I
PRELIMINARY
Sections:
1. Short title and commencement.
2. Definitions.
CHAPTER- II
INCORPORATION OF HIMACHAL PRADESH EX-
SERVICEMEN CORPORATION AND ITS CAPITAL
3. Establishment of Himachal Pradesh Ex-Servicemen
Corporation.
4. Head office and other offices of the Corporation.
5. Capital of the Corporation.
CHAPTER- III
MANAGEMENT OF THE CORPORATION
6. Management.
7. Constitution of Board.
8. Disqualifications.
9. Powers of the Managing Director.
9-A. Duties of the Vice-Chairman.
10. Staff of the Corporation.
11. Committees.
12. Meetings of the Board.
13. Delegation of powers to the Chairman –cum- Managing
Director and other officers and employees.
14. Casual Vacancies.
CHAPTER- IV
FUNCTIONS AND FUND OF THE CORPORATION
15. Functions of the Corporation.
16. Capital of the Corporation and its power to borrow or issue
bonds and debentures, etc.
17. Ex-servicemen Corporation Fund.
2 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
CHAPTER- V
LOANS
18. Power to impose conditions for loans.
19. Power to call repayment before agreed period.
20. Recovery of money due to the corporation.
21. First charge of Corporation on debtor’s property.
CHAPTER- VI
ACCOUNTS AND AUDIT
22. Accounts.
23. Audit.
CHAPTER- VII
MISCELLANEOUS
24. Dissolution of Corporation.
25. Directors not to participate in certain cases.
26. Bar of jurisdiction.
27. Protection of action taken in good faith.
28. Employees to be public servants.
29. Indemnity of Director.
30. Exemption from registration fee and stamp duty.
31. Power of Government to give directions.
32. Power to make regulations.
33. Power to make rules.
34. Power to remove difficulty.
____________
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION
ACT, 1979
(ACT NO. 8 OF 1980)1
(Received the assent of the President of India on the 8th June, 1980
and was published both in Hindi and English, the Rajpatra, Himachal Pradesh
(Extra-ordinary), on the 28th June, 1980, pp. 567-593).
1. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of Objects
and Reasons, see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 3rd
November, 1979, pp. 2462 and 2479.
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 3
An Act to provide for the establishment of the Himachal Pradesh Ex-
servicemen Corporation.
Amended, repealed or otherwise affected by-
(i) H.P. Act No. 16 of 19811 assented to by the Governor of
Himachal Pradesh on 7th November,1981, published in the
Rajpatra, Himachal Pradesh (Extra-ordinary), dated 10th
November, 1981, pp. 995-999, effective from 25th August,
1981, repealed by H. P. Act No. 13 of 19842 assented to by the
Governor, Himachal Pradesh on 28th May, 1984 published both
in Hindi and English in the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 4th June, 1984, pp. 957-964, effective from 25th
August, 1981.
(iii) H. P. Act No. 5 of 20143 assented to by the Governor, Himachal
Pradesh on 29th January, 2014, published both in Hindi and
English in the Rajpatra, Himachal Pradesh, dated 5th February,
2014, pp. 6487-6489.
It is hereby enacted by the Legislative Assembly of Himachal Pradesh
in the Thirtieth Year of the Republic of India as follow:-
CHAPTER- I
PRELIMINARY
1. Short title and commencement.- (1) This Act may be called the
Himachal Pradesh Ex-servicemen Corporation Act, 1979.
(2) It shall come into force on such date as the State Government may
by notification in the Official Gazette appoint in this behalf.
2. Definitions.- In this Act, unless there is anything repugnant in the
subject or context,-
(a) "agricultural development" includes development of dairy,
poultry, piggery, sheep and cattle breeding, pisciculture and
sericulture;
(b) "Bank" means-
(i) a banking company as defined in the Banking
Regulation Act, 1949 (10 of 1949),
1. Passed in Hindi in the Himachal Pradesh Vidhan Sabha. For Statement of Objects
and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 26th
September, 1981 p. 876.
2. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of
Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated
12th April, 1984, pp. 654 and 660.
3. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of
Objects and Reasons see the Rajpatra, Himachal Pradesh dated 20th December,
2013, pp. 5303 and 5306-5307.
4 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
(ii) the State Bank of India constituted under this State
Bank of India Act, 1955 (23 of 1955),
(iii) a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959),
(iv) a Regional Rural Bank established under the Regional
Rural Banks Act, 1976 (21 of 1976),
(v) a corresponding new bank constituted under the
Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970),
(vi) any banking institution notified by the Central
Government under section 51 of the Banking
Regulation Act, 1949 (10 of 1949),
(vii) the Agricultural Refinance and Development
Corporation constituted under the Agricultural
Refinance and Development Corporation Act, 1963
(10 of 1963),
(viii) the Agro-Industries Corporation as defined in clause
(c) of section 2 of the Himachal Pradesh Agricultural
Credit Operations and Miscellaneous Provisions
(Banks) Act, 1972 (1 of 1973),
(ix) the Agricultural Finance Corporation Limited, a
company incorporated under the Companies Act, 1956
(1 of 1956), and
(x) any other financial institution notified by the State
Government in the Official Gazette as bank for the
purposes of this Act;
(c) "Board" means the Board of Directors of the Corporation;
(d) 1["Chairman-cum-Managing Director"] and "Vice-Chairman"
means the 2[Chairman-cum-Managing Director] and Vice-
Chairman of the Corporation;
(e) "Corporation" means the Himachal Pradesh Ex-Servicemen
Corporation, established under section 3;
(f) "Ex-servicemen" means a person who is ordinarily residing in
the State of Himachal Pradesh and has served in any rank,
whether as combatant or non-combatant, in the Indian Armed
Forces or armed forces of the former Indian States (but
1. Substituted for the words "Chairman" vide H.P. Act. No. 16 of 1981, effective
from 25th August, 1981 validated by H. P. Act No. 13 of 1984, effective from 25th
August, 1981.
2. Substituted for the words "Chairman" vide H.P. Act. No. 16 of 1981, effective
from 25th August, 1981 validated by H. P. Act No. 13 of 1984, effective from 25th
August, 1981
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 5
excluding the Assam Rifles, Defence Security Corps, General
Reserve Engineering Force, Lok Sahayak Sena and Territorial
Army) for a continuous period of not less than six months
after attestation and has been released, otherwise than by way
of dismissal or discharge on account of misconduct or
inefficiency, and in the case of a deceased or incapacitated
ex-servicemen includes his wife, children, father, mother,
minor brother, widowed daughter and widowed sister, wholly
dependent upon such ex-servicemen immediately before his
death or incapacitation;
(g) "Ex-servicemen Organisation" means a firm registered under
the Indian Partnership Act, 1932 (9 of 1932), an association
registered under the Societies Registration Act, 1860 (21 of
1860), or a Co-operative Society registered under the
Himachal Pradesh Co-operative Societies Act, 1968 (3 of
1969) all the partners or members whereof, as the case may
be, are ex-servicemen;
(h) "Government" means Government of the State of Himachal
Pradesh;
1[ X X X X X X X];
(j) "margin money" means the money required as the share of the
beneficiary for granting financial assistance by the
financial/banking institutions and other organisations;
(k) "marketing" means all activities relating to the transport,
grading, polling, marketing and sale of agricultural or
industrial produce, whether in the primary form or in semi-
processed form;
(l) "prescribed" means prescribed by rules made under this Act;
(m) "processing" means all activities relating to the processing of
agricultural produce so as to make it marketable or fit for
consumption and includes purchase and storage of raw
materials, purchase of equipment, purchase, installation and
running of machinery required for processing and storage of
finished produce;
(n) "small scale-industry" means a cottage and small-scale
industry and includes industry engaged in fabrication, repairs
and maintenance of agricultural machinery and equipment, in
which capital investment does not exceed five lacs of rupees;
and
(o) "supply and storage" means supply and storage of agricultural
1. Clause (i) definition of "Managing Director" omitted vide H.P. Act No. 16 of
1981, effective from 25th August, 1981 validated by Act No. 13 of 1984, effective
from 25th August, 1981.
6 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
inputs and establishment, maintenance and running of
storages, cold storages and warehouses.
CHAPTER-II
INCORPORATION OF HIMACHAL PRADESH EX-
SERVICEMEN CORPORATION AND ITS CAPITAL
3. Establishment of Himachal Pradesh Ex-servicemen
Corporation.- (1) With effect from such date as the Government may, by
notification, appoint, there shall be established for the purpose of this Act, a
Corporation to be known as the Himachal Pradesh Ex-servicemen
Corporation.
(2) The Corporation shall be a body corporate with the name aforesaid
having perpetual succession and common seal with powers, subject to the
provisions of this Act, to acquire, hold and dispose of property and to
contract, and may, by that name, sue and be sued.
4. Head office and other offices of the Corporation.- (1) The head
office of the Corporation shall be at 1[Hamirpur] or at such other place as the
Government may, by notification, specify.
(2) The Corporation may establish its offices or agencies at such
places as it may think fit.
5. Capital of Corporation.- The authorised capital of the Corporation
shall be such sum not exceeding 2[five crores] of rupees as the Government
may initially fix:
Provided that where the capital initially fixed is less than 3[five
crores] of rupees, the Government may, from time to time, increase the capital
to such sum not exceeding 4[five crores] of rupees as it may think fit.
Explanation.- The expression "authorised capital" for the purpose of
this section shall not include the grant-in-aid received by the Corporation for
specific purposes.
CHAPTER-III
MANAGEMENT OF THE CORPORATION
6. Management.- (1) The general superintendence, direction and
management of the affairs and the business of the Corporation shall vest in a
Board of Directors which may exercise all such powers and do all such acts
and things as may be exercised or done by the Corporation.
(2) The Board in discharging its functions shall act on such principles
which shall be in consonance with the policy of the Government having
regard to public interest, welfare of ex-servicemen/serving soldiers and their
1. Substituted for the words “Simla” vide H.P. Act No. 5 of 2014.
2. Substituted for the words “two crores” vide H.P. Act No. 5 of 2014.
3. Substituted for the words “two crores” vide H.P. Act No. 5 of 2014.
4. Substituted for the words “two crores” vide H.P. Act No. 5 of 2014.
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 7
families and shall be guided by such instructions on question of policy 1[and
management], as may be given to it by the State Government.
(3) If any doubt arises as to whether a question is or is not a question
of policy, the decision of the State Government shall be final.
7. Constitution of Board.- (1) The Board of Directors shall consist of
the 2[Chairman-cum-Managing Director], Vice-Chairman, 3[x x x] and the
following other directors, namely:-
(a) the Secretary to the Government in the 4[Sainik Welfare
Department] or his nominee, ex-officio;
(b) the Secretary to the Government in the Finance Department
or his nominee, ex-officio;
(c) the 5[Secretary (Agriculture) to the Government of Himachal
Pradesh] or his nominee ex-officio;
(d) the Director of Industries, Himachal Pradesh or his nominee,
ex-officio;
6[(e) five other Directors to be nominated by the State
Government, not less than three of whom may be ex-
servicemen.]
7[(2) The Chairman-cum-Managing Director shall be an ex-
servicemen holding a Class I post while in service. The Vice-Chairman shall
be non-official person. The Chairman-cum-Managing Director and the Vice-
Chairman shall be appointed by the Government and shall hold office during
the pleasure of the Government.
(3) The Directors referred to in clause (e) of sub-section (1) shall hold
office during the pleasure of the Government.]
8[(4) X X X X X]
1(5) X X X X X]
1. Words "and management" added vide H.P. Act No. 16 of 1981, validated by Act
No. 13 of 1984, effective from 25th August, 1981.
2. Substituted for the words "Chairman" the vide H.P. Act No. 16 of 1981, validated
by Act No. 13 of 1984, effective from 25th August, 1981.
3. The sign and word ", Managing Director" omitted vide H.P. Act No. 16 of 1981,
validated by Act No. 13 of 1984, effective from 25th August, 1981.
4. Substituted for the words “General Administration Department” vide H.P. Act No.
5 of 2014.
5. Substituted for the words and sign “Agricultural Production Commissioner,
Himachal Pradesh” vide H.P. Act No. 5 of 2014.
6. Clause (e) substituted vide H.P. Act No. 16 of 1981, validated by Act No. 13 of
1984, effective from 25th August, 1981.
7. Sub-sections (2) and (3) substituted vide H.P. Act No 16 of 1981, validated by Act
No. 13 of 1984, effective from 25th August, 1981.
8. Sub-section (4) omitted vide H.P. Act No 16 of 1981, validated by Act No. 13 of
1984, effective from 25th August, 1981.
8 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
2[(6) The Board shall have Secretary-cum-Chief Accounts Officer
who shall be appointed by the Government on such terms and conditions as
the Government may prescribe.]
8. Disqualifications.- (1) A person shall be disqualified for being
appointed or nominated, or for continuing, as a Director of the Corporation,-
(a) if he is or at any time has been adjudicated insolvent or has
suspended payment of his debts or has compounded with his
creditors;
(b) if he is of unsound mind and stands so declared by a
competent court;
(c) if he is or has been convicted of any offence which in the
opinion of the Government involves moral turpitude; 3[or]
(d) if he, having held any office under the State Government or
Central Government, any local authority, any Government
Company or any corporate body owned or controlled by the
State Government or Central Government, has been removed
or dismissed from service 4[.]
5[(e) X X X X X X]
(2) If a Director becomes subject to any disqualification specified in
sub-section (1) his seat shall there-upon become vacant.
9. Powers of the 6[Chairman-cum-Managing Director].- (1) The
7[Chairman-cum-Managing Director], who shall be a whole-time officer of the
Corporation, shall-
(a) be its Chief Executive Officer;
(b) be responsible for the operational management of the
Corporation and implementation of the general policies
approved by the Corporation;
(c) perform such duties as the Corporation may, by regulations or
otherwise, assign to him.
1. Sub-section (5) amended vide H.P. Act No 16 of 1981, and omitted vide H.P. Act
No. 13 of 1984, effective from 25th August, 1981.
2. Sub-section (6) added vide H.P. Act No 16 of 1981, validated by Act No. 13 of
1984, effective from 25th August, 1981.
3. At the end of clause (c) word "or" inserted vide H.P. Act No. 13 of 1984, effective
from 25th August, 1981
4 At the end of clause (d) substituted for the sign and word "; or" vide H.P. Act No.
13 of 1984, effective from 25th August, 1981
5. Clause (e) omitted vide H.P. Act No. 13 of 1984, effective from 25th August, 1981
6. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981,
validated Act No. 13 of 1984, effective from 25th August, 1981
7. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981,
validated Act No. 13 of 1984, effective from 25th August, 1981
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 9
(2) If the 1[Chairman-cum-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
Government may appoint another person to act in his place during his
absence.
2[9-A. Duties of the Vice-Chairman.- The Vice-Chairman shall
discharge such functions as the Board may assign to him in addition to the
duties assigned to him under the Act.]
10. Staff of the Corporation.- The Board may appoint such officers
and employees as it may consider necessary for the efficient performance of
functions of the Corporation and determine, with the prior approval of the
Government the terms and conditions of their service.
11. Committees.- Subject to the rules made in this behalf the Board
may, from time to time, appoint one or more committees for the purpose of
securing the efficient discharge of its functions.
12. Meetings of the Board.- (1) The Board of any committee
appointed by it shall meet at such times and places and shall observe such
rules or procedure in regard to the transaction of business at its meetings as
may be provided by the regulations made by the Board under this Act.
(2) The 3[Chairman-cum-Managing Director] and in his absence the
Vice-Chairman, and in the absence of both, any other director elected by the
directors from amongst themselves, shall preside at the meeting of the Board.
(3) Six Directors shall form a quorum for the meetings of the Board:
Provided that no quorum shall be necessary for adjourned meetings.
(4) All questions which come up before any meeting of the Board
shall be decided by a majority of votes of the Directors present and voting and
in the event of an equality of votes, the 4[Chairman-cum-Managing Director],
the Vice-Chairman or the person presiding, as the case may be, shall have and
exercise a second or casting vote.
13. Delegation of Powers to 5[Chairman-cum-Managing Director]
Director] and other officers and employees.- The Board may, by a general
or special order, delegate to the 6[Chairman-cum-Managing Director], the
1. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981,
validated Act No. 13 of 1984, effective from 25th August, 1981
2 "9-A" added vide H.P. Act No. 16 of 1981, validated Act No. 13 of 1984, effective
from 25th August, 1981
3 . Substituted for the words “Chairman” vide H.P. Act No. 16 of 1981, validated Act
No. 13 of 1984, effective from 25th August, 1981
4 In section 12 substituted for the word "Chairman" vide H.P. Act No. 16 of 1981,
validated by Act No. 13 of 1984, effective from 25th August,1981.
5. Substituted for word "Chairman" vide H.P. Act No. 16 of 1981, validated by Act
No. 13 of 1984, effective from 25th August,1981.
6. Substituted for word "Chairman" vide H.P. Act No. 16 of 1981, validated by Act
No. 13 of 1984, effective from 25th August,1981.
10 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
Vice-Chairman 1[xx] or any committee appointed by it or any other officer or
employee of the Corporation subject to such conditions and limitations, if any,
as may be specified, such of its powers and duties under this Act, except the
power to make regulations, as it may deem necessary.
14. Casual vacancies.- (1) The 2[Chairman-cum-Managing Director],
the Vice-Chairman 3[xxxxxxx] or any director referred to in clause (e) of sub-
section (1) of section 7 may, at any time, resign his office by giving a notice
in writing to the Government and on such resignation being accepted he shall
be deemed to have vacated his office.
(2) If the office of the 4[Chairman-cum-Managing Director], the Vice-
Vice-Chairman, 5[xxx] or any director referred to in clause (e) of sub-section
(1) of section 7 falls vacant by reason of his death, resignation or otherwise
the vacancy shall be filled by the Government by appointment or nomination,
as the case may be.
CHAPTER- IV
FUNCTIONS AND FUND OF THE CORPORATION
15. Functions of the Corporation.- (1) Subject to the provisions of
this Act, the functions of the Corporation shall be to provide for the welfare
and economic uplift of the ex-servicemen in the State.
(2) Without prejudice to the generality of the foregoing provisions,
the Corporation may take such steps as it may think necessary,-
(i) to plan, promote and undertake, on its own or in collaboration
with or through such ex-servicemen organisations or other
agencies as may be approved by the Corporation,
programmes of agricultural development, marketing,
processing, supply and storage of agricultural produce, small
scale industry, building construction, transport and such other
business, trade or activity as may be approved in this behalf
by the Government;
(ii) to provide financial assistance to ex-servicemen or their
organisations by advancing to them in cash or in kind loans
including loans under hire-purchase system and/or loan
towards margin money for any of the purposes specified in
clause (i) either directly or through such agency, organisation
1. The words "or the Managing Director" omitted vide H.P. Act No. 16 of 1981,
validated by Act No. 13 of 1984, effective from 25th August,1981.
2. Substituted for the words “Chairman” vide H.P. Act No. 16 of 1981, validated Act
No. 13 of 1984, effective from 25th August, 1981
3. The words “or Managing Director” omitted vide H.P. Act No. 16 of 1981,
validated Act No. 13 of 1984, effective from 25th August, 1981
4. Substituted for the “Chairman” vide H.P. Act No. 16 of 1981, validated Act No.
13 of 1984, effective from 25th August, 1981
5. The words “or Managing Director” omitted vide H.P. Act No. 16 of 1981,
validated Act No. 13 of 1984, effective from 25th August, 1981
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 11
or institution as may be approved by it;
(iii) to give on hire agricultural or industrial machinery or
equipment to ex-servicemen or their organisation;
(iv) to give grants and subsidies to and to guarantee loans taken
by, the ex-servicemen or their organisation;
1[(iv-a) to provide security staff to the State and Central Government
Departments, Institutions and Public Sector Undertakings
etc.; and]
(v) to discharge such other functions as may be prescribed or as
are supplemental, incidental or consequential to any of the
functions conferred on it under this Act.
(3) In discharging its functions, the Corporation shall have due regard
to public interest, its solvency and welfare of ex-servicemen.
16. Capital of the Corporation and its power to borrow or issue
bonds and debentures, etc.- (1) For the purpose of carrying out its functions
under this Act, the Corporation may-
(a) be provided with capital by the Government on such terms
and conditions as the Government may specify, or by any
person or association of persons interested in or dealing with
the welfare of ex-servicemen on such terms and conditions as
may be mutually agreed upon between the Corporation and
such person or association of persons;
(b) with the previous approval of, and subject to the directions of
the Government, borrow money from any bank or other
financial institution or any other authority or organisation;
(c) issue bonds and debentures or draw, make, accept, endorse,
discount, execute and issue promissory notes, bills of
exchange, hundies, bills, warrants, debentures and other
negotiable instrument.
(2) The Government may guarantee the repayment of the moneys
borrowed by the Corporation under sub-section (1) and the payment of
interest thereon.
17. Ex-servicemen Corporation Fund.- (1) The Corporation shall
maintain a Fund called the Ex-servicemen Corporation Fund (hereinafter
referred to as the Fund) to which shall be credited-
(a) all moneys received by it from the Government or from any
person or association of persons interested in or dealing with
the welfare of ex-servicemen;
(b) such sums of money as may, from time to time, be realized by
way of repayment of loans made from the fund or from
1. Clause (iv-a) inserted vide H.P. Act No. 5 of 2014.
12 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
interest on loans;
(c) all moneys borrowed under section 16; and
(d) all moneys received by it from any other source.
(2) The moneys in the Fund shall be applied by the Corporation for
carrying out its functions under this Act.
(3) All moneys in the fund shall be deposited in the bank for the time
being included in the Second Schedule to the Reserve Bank of India Act, 1934
(2 of 1934), or in a Government Treasury, as may be decided by the
Corporation :
Provided that the Corporation may invest or deposit its surplus fund in
the Government securities or in such other manner as it may decide.
CHAPTER-V
LOANS
18. Power to impose conditions for loans.- In making any loan
authorised by this Act, the Corporation may impose such conditions as it may
think necessary or expedient for protecting the interest of the Corporation:
Provided that interests on such loan shall be chargeable at such
concessional rates as may, from time to time, be fixed by the Corporation with
the prior approval of the Government.
19. Power to call repayment before agreed period.-
Notwithstanding anything to the contrary contained in any agreement, the
Corporation may, by notice in writing, require any debtor to discharge
forthwith in full his liabilities to the Corporation,-
(a) if it appears to the Corporation that any false or misleading
information or particular was given in the application for
loan;
(b) if the debtor has failed to comply with any of the terms of the
agreement entered into by him with the Corporation;
(c) if there is a reasonable apprehension that the debtor is unable
to pay the money due from him; or
(d) if for any other reason it is necessary to do so to protect the
interests of the Corporation.
20. Recovery of money due to the Corporation.- (1) Where any
amount is due to the Corporation from any person, including the surety of a
debtor, in respect of loans or advances or other financial accommodation
granted by it, such amount shall, on a certificate being granted by the
1[Chairman-cum-Managing Director] in the prescribed form, be recoverable
as arrears of land revenue by the Collector of the district in which the person
1. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981, and
validated by Act No. 13 of 1984, effective from 25th August, 1981.
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 13
from whom the amount is due resides or carries on business or owns any
property.
(2) Before issuing the certificate referred to in sub-section (1) the
1[Chairman-cum-Managing Director] shall make an application to such
officer, unconnected with the business of the Corporation, as may be
empowered by the Government in this behalf, and that officer shall by an
order determine the amount due to the Corporation after giving an opportunity
of being heard to the person concerned and communicate the same to the
Managing Director.
(3) The officer empowered under sub-section (2) shall follow such
procedure as may be prescribed.
(4) The certificate issued by the 2[Chairman-cum-Managing Director]
under sub-section (1) shall be final and conclusive and shall not be called in
question before any authority or court.
(5) For the purpose of recovering any amount due to the Corporation
in respect of a loan it shall not be necessary to proceed against the principal
before proceeding against his surety.
21. First charge of Corporation on debtor`s property.-
Notwithstanding anything contained in any law for the time being in force, but
subject to the provisions in any law made by the Parliament relating to priority
of charges and to any prior claim of a bank or of the Government in respect of
land revenue or any money recoverable by it as arrears of land revenue, the
dues of the Corporation as determined under the preceding section of this Act
together with interest accrued thereon and cost of recovery shall be the first
charge on the property of the debtor and guarantor, if any.
CHAPTER- VI
ACCOUNTS AND AUDIT
22. Accounts.- (1) The balance-sheet and accounts including the profit
and loss accounts of the Corporation shall be prepared and maintained in such
form and manner as may be prescribed.
(2) The Corporation shall cause its books and accounts to be balanced
and closed on the thirty-first day of March each year.
23. Audit.- (1) The accounts of the Corporation shall be audited once in
every financial year by auditors duly qualified to act as auditors under sub-
section (1) of section 226 of the Companies Act, 1956 (1 of 1956), who shall
be appointed by the Corporation and shall receive such remuneration from the
Corporation as it may fix.
(2) The auditors shall be supplied with a copy of the Annual balance
1. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981, and
validated by Act No. 13 of 1984, effective from 25th August, 1981.
2. Substituted for the words "Managing Director" vide H.P. Act No. 16 of 1981, and
validated by Act No. 13 of 1984, effective from 25th August, 1981.
14 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
sheet and the profit and loss account of the Corporation and it shall be their
duty to examine them together with the accounts and vouchers relating
thereto, and they shall have a list delivered to them of all books kept by the
Corporation and shall at all reasonable times have access to the books,
accounts and other documents of the Corporation and may require from any
office of the Corporation such information as the auditors may think necessary
for the performance of their duties as auditors.
(3) The auditors shall make a report to the Corporation upon the annual
balance-sheet and accounts examined by them and in every such report they
shall state whether, in their opinion, the balance-sheet is full and fair balance-
sheet containing all necessary particulars and properly drawn up so as to
exhibit a true and fair view of the state of affairs of the Corporation.
(4) The Corporation shall furnish to the Government, within four
months from the date on which its accounts are closed and balanced, a copy of
its balance-sheet and accounts together with a copy of the auditor's report, and
a report on the working of the Corporation during the relevant year.
(5) Without prejudice to anything contained in the preceding sub-
section, the Government may, at any time, appoint any other authority to
examine and report upon the accounts of the Corporation and any expenditure
incurred in connection with such examination and report, shall be payable by
the Corporation to such authority.
(6) Copies of the reports referred to in sub-section (4) and (5) shall be
laid by the Government, as soon as may be, before the State Legislature.
CHAPTER- VII
MISCELLANEOUS
24. Dissolution of Corporation.- (1) No provision of law other than
this Act, relating to the winding up, dissolution or liquidation of the
companies or corporations shall apply to the Corporation.
(2) The State Government may, if the Corporation exceeds its powers,
or upon receipt of a report under section 23, call upon the Corporation to show
cause why it should not be dissolved, and if no explanation is offered within
the specified period, or if the State Government is not satisfied with the
explanation, it may dissolve the Corporation from such date as may be
specified.
(3) When the Corporation is dissolved under sub-section (2)-
(i) all Directors shall, from the date of dissolution, vacate their
offices;
(ii) all powers and duties of the Corporation shall, during the
period of dissolution, be exercised and performed by such
person or persons as the State Government may appoint in
this behalf;
(iii) all funds and other property vested in the Corporation shall,
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 15
during the period of dissolution, vest in the State
Government. The Government may, in its discretion,
reconstitute the Corporation after such period as it may think
fit.
25. Directors not to participate in certain cases.- A Director who has
any direct or indirect pecuniary interest in any matter coming up for
consideration at a meeting of the Board or a committee thereof shall, as soon
as possible, after the relevant circumstances have come to his knowledge,
disclose the nature of his interest at such meeting and the disclosure shall be
recorded in the minutes of the Board or the committee, as the case may be,
and the Director shall not take any part in any deliberation or decision of the
Board or the committee with respect to that matter.
26. Bar of jurisdiction.- Save as otherwise expressly provided in this
Act, no civil court shall have jurisdiction to entertain any suit or proceeding in
respect of any matter which the Corporation or any officer or authority
appointed under this Act is empowered by or under this Act to determine, and
no injunction shall be granted by any court or other authority in respect of any
action taken or to be taken in pursuance of any power conferred by or under
this Act.
27. Protection of action taken in good faith.- No suit or other legal
proceedings shall lie against the Corporation or any Director or any officer or
employee or any other person authorised by the Board to discharge any
function under this Act for any loss or damage caused or likely to be caused
by anything which is in good faith done or intended to be done in pursuance
of this Act.
28. Employees to be public servants.- The 1[Chairman-cum-Managing
Director], the Vice-Chairman, 2[xxxxx] the Directors and other employees of
the Corporation shall be deemed to be the public servants within the meaning
of section 21 of the Indian Penal Code, 1860 (45 of 1860).
29. Indemnity of Director.- (1) Every Director shall be indemnified by
the Corporation against all losses and expenses incurred by him in the
discharge of his duties except such as are caused by his own wilful act or
default.
(2) A Director shall not be responsible for any other Director, or for any
officer of other employee of the Corporation or for any loss or expenses
resulting to the Corporation from the insufficiency or deficiency of value of,
or title to, any property or security acquired or taken on behalf of the
Corporation in good faith, or by the insolvency or wrongful act of any debtor
or any person under obligation to the Corporation, or anything done in good
faith, in the execution of the duties of his office or in relation thereto.
1 Substituted for the words "Chairman" vide H.P. Act No. 16 of 1981, and
validated by Act No.13 of 1984, effective from 25th August, 1981.
2 The words "the Managing Director" omitted vide H.P. Act No. 16 of 1981, and
validated by Act No.13 of 1984, effective from 25th August, 1981.
16 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
30. Exemption from registration fee and stamp duty.- All
documents executed by or on behalf of the Corporation in the course of
discharge of its functions under this Act shall be exempted from payment of
stamp duty and registration fee:
Provided that exemption from payment of stamp duty shall apply to
those documents in relation to rates of stamp duty whereof the State
Legislature is competent to legislate.
31. Power of Government to give directions.- The Corporation shall
carry out such directions as may, from time to time, be issued to it by the
Government for the efficient administration of this Act.
32. Power to make regulations.- (1) The Board may, with the
previous approval of the Government and subject to the provisions of the rules
to be framed by the Government under section 33, make regulations not
inconsistent with this Act and the rules framed thereunder to provide for all
matters for which provision is necessary or expedient for the purposes 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,-
(a) the duties which the 1[Chairman-cum-Managing Director,]
Vice-Chairman 2[XXX] shall perform;
(b) the time and the places of meetings of the Board and the
Committees appointed by it and the procedure to be followed
in relation to such meeting;
(c) the conditions which may be imposed and the procedure
which may be followed in granting loans, providing margin
money or entering into other arrangements by the
Corporation;
(d) the duties and conduct of the officers and other employees of
the Corporation;
(e) the establishment and maintenance of provident fund and
other benefit funds for the officers and other employees of the
Corporation; and
(f) generally, the efficient conduct of the affairs of the
Corporation.
(3) No regulations made under this Act shall have effect until they are
published in the Official Gazette.
33. Power to make rules.- (1) The Government may, by notification,
1. Substituted for the words "Chairman " vide H.P. Act No. 16 of 1981, and
validated by Act No. 13 of 1984, , effective from 25th August, 1981
2. The Words "and the Managing Director" omitted vide H.P. Act No. 16 of 1981,
and validated by Act No. 13 of 1984, , effective from 25th August, 1981
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979 17
make rules to carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:-
1[(a) the salary and allowances payable to the Chairman-cum-
Managing Director, the Vice-Chairman and the Director
referred to in clause (e) of sub-section (1) of section 7.]
2[(b) the terms and conditions of appointment, including salary and
allowances of the Secretary-cum-Chief Accounts Officer
under sub-section (6) of section 7;]
3[c) X X X X X;]
(d) other functions which the Corporation may discharge in
addition to those mentioned in sub-section (2) of section 15;
(e) the form in which the certificate 4[under section 20] shall be
granted by the 5[Chairman-cum-Managing Director] and the
procedure that shall be observed for determining the amount;
(f) the financing institutions for the purposes of priority of
charge under section 21;
(g) the form and manner in which accounts shall be maintained
and the balance-sheet and profit and loss account shall be
prepared; and
(h) any other matter which is required to be, or may be,
prescribed.
(3) Every rule made under this section shall be laid as soon as may be
after it is made, before the Legislative Assembly while it is in session for a
total period of ten days which may be comprised in one session or in two or
more successive sessions, and, if before the expiry of the session in which it is
so laid or the successive sessions aforesaid, the Assembly makes any
modification in the rule or decides that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as
the case may be, so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that
rule.
1. In Section 33(2) clause (a) substituted vide H.P. Act, No. 16 of 1981, validated
by Act No. 13 of 1984, effective from 25th August, 1981.
2. In Section 33(2) clause (b) amended vide H.P. Act, No. 16 of 1981, and
substituted vide H.P. Act No. 13 of 1984, effective from 25th August, 1981.
3. Clause (c) amended vide H.P. Act, No. 16 of 1981, and omitted vide H.P. Act No.
13 of 1984, effective from 25th August, 1981.
4. Inserted vide H.P. Act, No. 16 of 1981, validated by Act No. 13 of 1984, effective
from 25th August, 1981.
5 . Substituted for the words "Managing Director" vide H.P. Act, No. 16 of 1981,
validated by Act No. 13 of 1984, effective from 25th August, 1981.
18 THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION ACT, 1979
34. Power to remove difficulty.- If any difficulty arises in giving
effect to the provisions of this Act, the Government may, by order published
in the Official Gazette, make such provisions or giving such direction not
inconsistent with the provisions of this Act, as may appear to it to be
necessary or expedient for the removal of such difficulty.
THE HIMACHAL PRADESH EX-SERVICEMEN CORPORATION
(AMENDMENT AND VALIDATION) ACT, 1984
[Sections 2 to 13 incorporated in the Principal Act].
14. Repeal and savings.- (1) The Himachal Pradesh Ex-Servicemen
Corporation (First Amendment) Act, 1981 (16 of 1981) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken or
purporting to have been done or taken in exercise of any power conferred by
or under the said Act, shall, so far as it is not inconsistent with the provisions
of this Act, be deemed to have been done or taken under this Act, as if this
Act was in force on the day when such thing was done or action was taken.
15. Validation.- Notwithstanding anything to the contrary contained
in the Himachal Pradesh Ex-Servicemen Corporation Act, 1979 (Act No. 8 of
1980), the Chairman-cum-Managing Director and the Secretary-cum-Chief
Accounts Officer of the Corporation shall be and shall always be deemed to
have been validly appointed, irrespective of the fact that the provisions
contained in the Himachal Pradesh Ex-Servicemen Corporation (First
Amendment) Act, 1981 (Act No. 16 of 1981) amending sections 2, 6, 7, 9, 12,
13, 14, 20, 28, 32 and 33 of the principal Act were not enacted in the official
language and all appointments and orders made, notifications issued and
action taken and acts done in pursuance of the aforesaid provisions shall be
deemed to be and always to have been validly made, issued, taken or done as
if the provisions as contained in sections 2 to 13 of this Act were enacted and
were in force on the day on which such appointment or order was made,
notification was issued, action was taken or acts were done.
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