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The Himachal Pradesh Scheduled Castes and Schedule Tribes Corporation Act,1979

Himachal Pradesh · state statute
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THE HIMACHAL PRADESH SCHEDULED CASTES 1[AND 
SCHEDULED TRIBES] DEVELOPMENT CORPORATION 
ACT, 1979 
ARRANGEMENT OF SECTIONS 
Sections: 
CHAPTER-I 
PRELIMINARY 
1. Short title. 
2. Definitions. 
CHAPTER-II 
INCORPORATION OF HIMACHAL PRADESH 
SCHEDULED CASTES DEVELOPMENT 
CORPORATION AND ITS CAPITAL 
3. Establishment of Himachal Pradesh Scheduled Caste 
Development Corporation. 
4. Head of Corporation. 
5. Capital of Corporation. 
CHAPTER-III 
MANAGEMENT OF THE CORPORATION 
6. Management. 
7. Board of Directors. 
8. Term of office. 
9. Disqualification of office of director. 
10. Director not to participate in certain cases. 
11. Resignation. 
12. Meetings. 
13. Managing director. 
14. Defect in appointment not to invalidate acts, etc. 
15. Officers and other employees of the Corporation. 
CHAPTER-IV 
FUNCTIONS AND FUNDS OF THE CORPORATION 
16. Functions of Corporation. 
16-A.  Conferment of additional functions on the Corporation. 
17. Corporation to maintain six funds. 
                                                      
1. Inserted vide H.P. Act No. 8 of 1984. 
2  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
18. Land Development and Finance Fund. 
19. Guarantee Fund. 
20. Bad Debts Fund. 
21. Relief and Common Good Fund. 
22. Grant-in-aid and Subsidies Fund. 
23. Loan Fund. 
23-A.  Additional Functions Fund. 
CHAPTER-V 
LOANS  
24. Power to impose conditions for loans. 
25. Power to call repayment before agreed period. 
26. Recovery of money due to the Corporation. 
26-A. Recovery of certain dues of banks as arrears of land revenue. 
26-B. Collection charges. 
27. First Change of Corporation’s Loans on debtor’s property. 
CHAPTER-VI 
ACCOUNTS AND AUDIT 
28. Accounts. 
29. Audit. 
29-A. Laying of the annual and audit reports before the State 
Legislative Assembly. 
CHAPTER-VII 
MISCELLANEOUS 
30. Dissolution of Board. 
31. Consequences of dissolution of the Board. 
32. Bar of jurisdiction. 
33. Protection of action taken in good faith. 
34. Employees to be public servants. 
35. Indemnity of directors. 
36. Exemption from registration fee and stamp duty. 
37. Power to make regulations. 
38. Power to make rules. 
39. Power to remove difficulties. 
 SCHEDULE 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  3 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
THE HIMACHAL PRADESH SCHEDULED CASTES 1[AND 
SCHEDULED TRIBES] DEVELOPMENT CORPORATION 
ACT, 1979 
(ACT NO. 20 OF 1979)2 
(Received the assent of the President of India, on 13th August, 1979, 
and was published in the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
23rd August, 1979, pp. 2123-2134.) 
Amended, repealed or otherwise affected by,- 
1. H.P. Act No. 28 of 19793, assented to by the Governor on the 16th 
November, 1979, published in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 22nd November, 1979, pp. 2520-2523, 
effective from 20th September, 1979. 
2. H.P. Act No. 8 of 19844, assented to by the Governor on the 9th 
May, 1984, published in the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 17th May, 1984, pp. 889-895 
3. H.P. Act No. 7 of 19875, assented to by the Governor on the 11th 
April, 1987, published in the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 13th April, 1987, p. 685-688, effective from 12th 
February, 1987. 
4. H.P. Act No. 16 of 19916, assented to by the Governor on the 20th 
October, 1991, published in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 21st October, 1991, pp. 2347-2352, 
effective from 10th July, 1991. 
5. H.P. Act No. 19 of 19987, assented to by the Governor on 22nd 
September, 1998, published in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 23rd September, 1998, pp. 3433-3436. 
6. H.P. Act No. 16 of 20041, assented to by the Governor on the 20th 
August, 2004, published in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 24th August, 2004, p. 1683-1686. 
                                                      
1.  Inserted vide H.P. Act No. 8 of 1984. 
2.  For Statement of Objects and Reasons, see the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 12th April, 1979, p. 1473. 
3.  For Statement of Objects and Reasons, see the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 5th November, 1979, p. 2494. 
4.  For Statement of Objects and Reasons, see the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 4th April, 1984, p. 586. 
5.  For Statement of Objects and Reasons, see the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 11th March, 1987, pp. 397. 
6.  Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons, see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
12th September, 1991, pp. 1949 and 1953. 
7.  Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
24th July, 1998, pp. 2726 and 2730. 
4  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
7. H.P. Act No. 11 of 20082 assented to by the Governor on the 6th 
June, 2008, published in Hindi and English in the Rajpatra, 
Himachal Pradesh, dated 9th June, 2008 pp. 1563-1564. 
An Act to provide for the establishments of the Himachal Pradesh 
Scheduled Castes 3[and Scheduled Tribes] Development 
Corporation. 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Thirtieth year of the Republic of India as follows:- 
CHAPTER-I 
PRELIMINARY 
1. Short title.- This Act may be called the Himachal Pradesh 
Scheduled Castes 4[and Scheduled Tribes] Development Corporation Act, 
1979. 
2. Definitions.- In this Act, unless there is anything repugnant in the 
subject or context,- 
(a) ‘agricultural development’ includes development of 
horticulture, forests, dairy, poultry, piggery, sheep and cattle 
breeding, pisciculture and sericulture; 
5[(aa) ‘bank’ means,- 
(i) a banking company as defined in the Banking 
Regulation Act, 1949 (10 of 1949), 
(ii) the State Bank of India constituted under the 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), 
                                                                                                                               
1  Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons, see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
24th June, 2004, pp. 942 and 945. 
2.  Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons see the Rajpatra, Himachal Pradesh, dated 17th April, 2008, 
pp. 274 and 277. 
3. Inserted vide H.P. Act No. 8 of 1984. 
4. Inserted vide H.P. Act No. 8 of 1984. 
5. Clause (aa) inserted vide H.P. Act No. 28 of 1979, effective from 20th September, 
1979. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  5 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(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 
(1 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 (7 of 1973), 
(ix) the Agricultural Finance Corporation Limited, a 
company incorporated under the Companies Act, 
1956 (1 of 1956), 
(x) any other financial institution notified by the State 
Government in the Official Gazette, as bank for the 
purposes of this Act,] 
(b)  ‘Board’ means the Board of directors of the Corporation; 
(c)  ‘Central Government’ means the Government of India; 
1[(d)  ‘Chairman’ and ‘Vice-Chairman’ mean the Chairman and 
the Vice-Chairman of the Corporation;]; 
2[(dd)  ‘Collector’ means the Collector of the District and includes 
any other officer, not below the rank of the Assistant 
Collector of the 1st Grade, empowered by the State 
Government to discharge the functions of the Collector for 
the purposes of this Act;]; 
(e)  ‘Corporation’ means the Himachal Pradesh Scheduled 
Castes 3[and Scheduled Tribes] Development Corporation, 
established under section 3; 
(f)  ‘director’ means a director of the Board and includes the 
Chairman 4[and the Vice-Chairman]; 
(g)  ‘Government’ means the Government of Himachal Pradesh; 
(h)  ‘margin money’ means the margin money required by the 
financial banking institutions from the beneficiaries; 
                                                      
1. Clause (d) substituted vide H.P. Act No. 28 of 1979, effective from 20th 
September, 1979, H.P. Act No. 8 of 1984 again substituted vide H.P. Act No. 7 of 
1987, effective from 12th February, 1987. 
2. Clause (dd) inserted vide H.P. Act No. 8 of 1984. 
3. Inserted vide H.P. Act No. 8 of 1984. 
4. Words “and the Vice-Chairman” added by Act No. 28 of 1979, effective from 
20th September, 1979, omitted vide H.P. Act No. 8 of 1984 and again inserted 
vide H.P. Act No. 7 of 1987 effective from 12th February, 1987. 
6  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
(i)  ‘marketing’ means all activities relating to the transport, 
grading, pooling, marketing and sale of agricultural or 
industrial produce, whether in the primary form or in semi-
processed or processed form; 
(j)  ‘prescribed’ means prescribed by rules made under the Act; 
(k)  ‘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-
material, purchase of equipment, and purchase, installation 
and running of machinery, required for processing and 
storage of finished produce; 
1[(kk)  ‘schedule’ means the schedule appended to this Act;] 
(l)  ‘schedule castes’ means such castes, races or tribes or parts 
of or groups within such castes, races or tribes as are 
deemed under article 341 of the Constitution of India to be 
scheduled castes; 
2[(m)  ‘scheduled castes organization’ or ‘scheduled tribes 
organisation’ means a firm registered under the 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) in which not 
less than fifty-one percent of the paid up capital is held by 
the members of the scheduled castes, or as the case may be 
by the members of the scheduled tribes;]; and 
3[(mm)  ‘scheduled tribes’ shall have the same meaning as assigned 
to it in Clause (25) of Article 366 of the Constitution of 
India.] 
(n)  ‘small scale industry’ means such cottage and small scale 
industry as may by notification in the Official Gazette be 
specified by the State Government; and 
(o)  ‘supply and storage’ means supply and storage of 
agricultural inputs and establishment, maintenance and 
running of storages, cold-storages and warehouses. 
 
 
 
 
                                                      
1 . Clause (kk) inserted vide H.P. Act No. 8 of 1984. 
2. Clause (m) substituted vide H.P. Act No. 8 of 1984. 
3. Clause (mm) inserted vide H.P. Act No. 8 of 1984. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  7 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
CHAPTER-II 
INCORPORATION OF HIMACHAL PRADESH SCHEDULED 
CASTES 1[AND SCHEDULED TRIBES] DEVELOPMENT 
CORPORATION AND ITS CAPITAL 
3. Establishment of Himachal Pradesh 2[Scheduled Castes and 
Scheduled Tribes Development Corporation].- (1) With effect from such 
date3 as the State Government may, by notification, specify in this behalf, the 
State Government may, by notification, specify in this behalf, the State 
Government may establish for the purpose of this Act a Corporation known as 
the Himachal Pradesh 4[Scheduled Castes and Scheduled Tribes Development 
Corporation]. 
(2) The Corporation shall be a body corporate with the name aforesaid 
having perpetual succession and a 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 or be sued. 
4. Head office of Corporation.- (1) The head office of the 
Corporation shall be at Shimla or at such other place as the State Government 
may, by notification, specify. 
(2) The Corporation may establish its offices or agencies at such 
places within or outside the State as it may think fit. 
5. Capital of Corporation.- (1) Authorised capital of the Corporation 
shall be such sum not exceeding 5[sixty crores] of rupees as the State 
Government may fix: 
Provided that where the capital initially fixed is less than 6[sixty 
crores] of rupees the State Government may, from time to time, increase the 
capital to such sum not exceeding 1[sixty crores] of rupees as it may think fit. 
                                                      
1. Inserted vide H.P. Act No. 8 of 1984. 
2. substituted for the words “Scheduled Castes Development Corporation” vide H.P. 
Act No. 8 of 1984. 
3 . Corporation established w.e.f. 14th November, 1979 vide Not. appended. 
4. Substituted for the words “Scheduled Castes Development Corporation” vide 
H.P. Act No. 8 of 1984. 
5 . The words “ten crores” substituted for the words “five crores”. vide H.P. Act No. 
8 of 1984, the words “twenty crores” substituted for the words “ten crores” vide 
H.P. Act No. 16 of 1991, the words “thirty crores” substituted for the words 
“twenty crores” vide H.P. Act No. 19 of 1998, the words “forty crores” 
substituted for the words “thirty crores” vide H.P. Act No. 16 of 2004, again and 
again the words “sixty crores” substituted for the words “forty crores” vide H.P. 
Act No. 11 of 2008. 
6 . The words “ten crores” substituted for the words “five crores”. vide H.P. Act No. 
8 of 1984, the words “twenty crores” substituted for the words “ten crores” vide 
H.P. Act No. 16 of 1991, the words “thirty crores” substituted for the words 
“twenty crores” vide H.P. Act No. 19 of 1998, the words “forty crores” 
substituted for the words “thirty crores” vide H.P. Act No. 16 of 2004, again and 
again the words “sixty crores” substituted for the words “forty crores” vide H.P. 
Act No. 11 of 2008. 
8  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
(2) Such capital may be provided subject to such terms and conditions 
as may be determined by the State Government. 
Explanation.- The expression ‘authorised capital’ for the purpose of 
this section shall not include the grant-in-aid received by the Corporation for 
the managerial assistance. 
CHAPTER-III 
MANAGEMENT OF THE CORPORATION 
6. Management.- (1) The general superintendence, direction and 
management of the affairs and 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 under this Act. 
(2) The Board of directors in discharging its functions shall act having 
regard to public interest, welfare of 2[scheduled castes and scheduled tribes] 
and solvency of the Corporation and shall be guided by such instructions on 
questions of policy 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 thereon shall be final. 
3[7. Board of directors.- (1) The Board shall consist of sixteen 
directors who shall be nominated by the State Government. 
Provided that not less than two directors shall be nominated from 
amongst the officers serving the State Government in the Department of 
Welfare and the remaining shall be nominated from amongst the persons who 
have special knowledge of industries, handicrafts, animal husbandry, 
agriculture, agro-Industries, water development projects, finance, co-operation 
or financial institutions: 
Provided further that not less than two directors shall be non-official, 
belonging to scheduled caste and at least one director shall be non-official 
belonging to the scheduled tribes. 
4[(2) The State Government shall nominate out of the directors, 
appointed under sub-section (1), the Chairman and the Vice-Chairman of the 
Corporation.]; 
                                                                                                                               
1 . The words “ten crores” substituted for the words “five crores”. vide H.P. Act No. 
8 of 1984, the words “twenty crores” substituted for the words “ten crores” vide 
H.P. Act No. 16 of 1991, the words “thirty crores” substituted for the words 
“twenty crores” vide H.P. Act No. 19 of 1998, the words “forty crores” 
substituted for the words “thirty crores” vide H.P. Act No. 16 of 2004, again and 
again the words “sixty crores” substituted for the words “forty crores” vide H.P. 
Act No. 11 of 2008. 
2. Substituted for the words “scheduled castes” vide H.P. Act No. 8 of 1984. 
3.  Section 7 amended vide, H.P. Act No. 28 of 1979 and substituted vide H.P. Act 
No. 8 of 1984. 
4. Sub-section (2) substituted vide H.P. Act No. 7 of 1987 effective from 12th 
February, 1987. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  9 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(3) On the occurrence of any vacancy in the office of the Chairman 1[, 
the Vice-Chairman] or a director due to death, resignation or otherwise, the 
same shall be filled up by the State Government in the manner provided in 
sub-section (1) or in sub-section (2), as the case may be. 
2[(4) The Chairman and the Vice-Chairman shall perform such duties, 
and exercise such powers as may be assigned to them or conferred upon them 
by the Board under sub-section (2) of section 15 of this Act.] 
(5) Subject to the provisions of this Act the conditions of appointment 
of the Chairman 3[, the Vice-Chairman] and the directors and the fees and 
allowances payable to them, shall be such as may be prescribed.] 
4[8. Term of office.- The Chairman 5[, the Vice-Chairman] and other 
directors shall hold office during the pleasure of the State Government.] 
9. Disqualification of office of director.- A person shall be 
disqualified for being nominated as and for being, 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 State Government involves moral turpitude; or 
(d) if he has been removed or dismissed from the service of any State 
Government or Central Government or a Corporation owned or 
controlled by any State Government or Central Government. 
10. Director 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. 
 
 
                                                      
1. Inserted vide H.P. Act No. 7 of 1987, effective from 12th February, 1987. 
2. Sub-section (4) substituted vide H.P. Act No. 7 of 1987, effective from 12th 
February, 1987. 
3. Inserted vide H.P. Act No. 7 of 1987 effective from 12th February, 1987. 
4. Section 8 amended vide H.P. Act No. 28 of 1979 and substituted vide H.P. Act 
No. 8 of 1984. 
5. Inserted vide H.P. Act No. 7 of 1987, effective from 12th February, 1987. 
10  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
1[11. Resignation.- 2[The Chairman, the Vice-Chairman or a director] 
may resign his office by giving notice thereof in writing to the State 
Government and on such resignation being accepted he shall be deemed to 
have vacated his office.] 
12. Meetings.- (1) The Board shall meet at such times and places and 
shall observe such rules or procedure in regard to the transaction of business 
at its meetings (including the quorum at meetings) as may be provided by 
regulations. 
3[(2) The Chairman, and in his absence 4[the Vice-Chairman, or in the 
absence of both] any other director of the Board elected by the directors from 
amongst themselves shall preside at every meeting of the Board]. 
(3) All questions which come up before any meeting of the Board 
shall be directed by a majority of the votes of directors present and voting, 
and, in the event of an equality of votes, 5[the Chairman, or in his absence 
6{the Vice-Chairman, or in the absence of both} the person presiding,] shall 
have and exercise a second or casting vote. 
13. Managing director.- (1) The State Government shall appoint one 
of the directors, being an officer of the State Government, as managing 
director who shall hold that office during its pleasure. 
(2) The managing director 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 Board; 
(c)  perform such duties as the Board may, by regulations or 
otherwise, assign to him; 
(d)  receive such salary and allowances and be governed by such 
terms and conditions of service as may be determined by the 
Board and approved by the State Government. 
                                                      
1. Section 11 alongwith its heading substituted vide H.P. Act No. 8 of 1984. 
2. Substituted for the words “A director” vide H.P. Act No. 7 of 1987, effective 
from 12th February, 1987. 
3. Sub-section (2) substituted vide H.P. Act No. 28 of 1979, effective from 20th 
September, 1979. 
4. The words and signs “the Vice-Chairman, or in the absence of both” omitted vide 
H.P. Act No. 8 of 1984 and again inserted vide. Act No. 7 of 1987, effective from 
12th February, 1987. 
5. The words “the chairman, the vice-chairman or the person presiding, as the case 
may be,” substituted for the words “the chairman, or in his absence the person 
presiding; vide H.P. Act No. 28 of 1979, effective from 20th September, 1979, 
again the words “the Chairman, or in his absence the person presiding” 
substituted for the words “the chairman, the vice-chairman or the person 
presiding, as the case may be,” vide H.P. Act No. 8 of 1984. 
6. Inserted vide H.P. Act No. 7 of 1987, effective from 12th February, 1987. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  11 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(3) 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. 
14. Defect in appointment not to invalidate acts, etc.- (1) No act or 
proceeding of the Board or any of its committees shall be questioned or be 
invalid on the ground merely on the existence of any vacancy in, or any defect 
in the constitution of, the Board or the committee as the case may be. 
(2) No act done by any person acting in good faith as a director or 
member of any committee shall be deemed to be invalid merely on the ground 
that he was disqualified to be a director or member or there was any other 
defect in his nomination. 
15. Officers and other employees of the Corporation.- (1) The 
Board may appoint such officers and employees as it considers necessary for 
the efficient performance of the functions of the Corporation and determine by 
regulations or otherwise their conditions of appointment and service and the 
remuneration paid to them. 
(2) The Board may, by general or special order, delegate to the 
Chairman, 1[the Vice-Chairman,] the managing director or to 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. 
(3) The Board in respect of reservation of appointments and posts in 
favour of the members of scheduled castes/scheduled tribes, backward classes, 
ex-servicemen, physically handicapped and antyodaya families, comply with 
such directions as may be issued by the State Government from time to time 
for ensuring adequate representation in such members in the service under the 
Corporation. 
CHAPTER-IV 
FUNCTINS AND FUNDS OF THE CORPORATION 
16. Functions of Corporation.- (1) Subject to the provisions of the 
Act, it shall be the primary duty of the Corporation to undertake the task of 
economic uplift of the members of the scheduled castes 2[and the scheduled 
tribes] in the State. 
(2) Without prejudice to the generality of the foregoing provision, 
such function shall include the power- 
(i)  to plan, promote, undertake, and assist programmes of 
agricultural development, animal husbandry, marketing, 
                                                      
1. The words and sign “the Vice-Chairman,” inserted vide H.P. Act No. 28 of 1979, 
the words “, the Vice-Chairman” omitted vide Act No. 8 of 1984 and again 
inserted vide H.P. Act No. 7 of 1987, effective from 12th February, 1987. 
2. Inserted vide H.P. Act No. 8 of 1984. 
12  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
processing, supply and storage of agricultural produce, 
small scale industries, village industries, cottage industries, 
and such other trade, business or activity which will enable 
1[the members of the scheduled castes or the scheduled 
tribes] to earn a better living and help them to improve their 
standard of living as may be approved in this behalf by the 
Government; 
(ii)  to undertake programmes for setting up employment 
oriented industries, cottage and small scale industries etc. 
by providing technical know-how, managerial assistance, 
financial assistance and any other form of assistance which 
may be required in achieving the above objectives; 
(iii)  to provide financial assistance to the members of 2[the 
scheduled castes and the scheduled tribes or the scheduled 
castes and the scheduled tribes organizations] by advancing 
to them loans and/or loan toward margin money for any of 
the purposes specified above either directly or through such 
agency, organization or institution as may be approved by 
the Board; 
(iv)  to guarantee loans taken by the members of 3[the scheduled 
castes and the scheduled tribes or the scheduled castes and 
the scheduled tribes organizations] from any financial/ 
banking institutions; 
(v)  to act as the agent of the Government of Himachal Pradesh 
or Central Government for procurement, supply and 
distribution of agricultural or other produce or other goods 
as and when required to do so; 
(vi)  to provide facilities for survey, research or study the 
problems relating to cottage and village industries, small 
scale business to assess potentiality of village, cottage and 
small scale industries and scope of their development with a 
view to promoting such industries and business for the 
purpose of providing employment for the members of the 
scheduled castes 4[and the scheduled tribes]; 
(vii)  to arrange for publicity and marketing of the finished 
products manufactured by the 5[the scheduled castes and the 
                                                      
1. Substituted for the words “the member of scheduled castes” vide H.P. Act No. 8 
of 1984. 
2. Substituted for the words “scheduled castes or scheduled castes organizations” 
vide H.P. Act No. 8 of 1984. 
3. Substituted for the words “scheduled castes or scheduled castes organizations” 
vide H.P. Act No. 8 of 1984. 
4. Inserted vide H.P. Act No. 8 of 1984. 
5. Substituted for the words “scheduled castes or scheduled castes organizations” 
vide H.P. Act No. 8 of 1984. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  13 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
scheduled tribes or the scheduled castes and the scheduled 
tribes organizations] in the small scale industries; 
(viii)  to give grants and subsidies to the members of 1[the 
scheduled castes and the scheduled tribes or the scheduled 
castes and the scheduled tribes organizations] on behalf of 
the State or Central Government or any other Government 
institution; 
(ix)  to borrow money subject to such conditions as the Board 
may specify; 
(x)  to receive gifts, grants and donations. 
(xi)  to issue bonds and debentures; 
(xii)  to draw, make, accept, endorse, discount, execute and issue 
promissory notes, bills of exchange, hundies, bills, 
warrants, debentures and other negotiable instruments; 
(xiii)  to invest or deposit surplus funds of the Corporation in 
Government securities or in such other manner as the Board 
may decide; 
(xiv)  to enter into contracts; and 
(xv)  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. 
2[16-A. Conferment of additional functions on the Corporation.- 
(1) Notwithstanding anything contained in this Act, the Governor may, after 
consultation with the Corporation, entrust either conditionally or 
unconditionally to the Corporation or its officers additional functions in 
relation to the social security or social insurance or uplift of the weaker 
sections of the society in the State. 
(2) The Governor may, by order in writing and after consultation with 
the Corporation, confer on the Corporation such powers of supervisory nature 
over agencies, authorities or officers set up, constituted or appointed by the 
State Government as are necessary for providing social security or social 
insurance and uplift of the weaker sections of the society in the State. 
(3) When any additional functions are conferred on the Corporation 
under sub-section (1), the Corporation shall exercise the same powers, 
discharge same duties and perform the same functions, as it would have 
exercised in discharge of duties and performance of functions assigned to it 
under section 16 and the provisions of this Act shall apply accordingly. 
                                                      
1. Substituted for the words “scheduled castes or scheduled castes organizations” 
vide H.P. Act No. 8 of 1984. 
2. Section 16-A inserted vide H.P. Act No. 16 of 1991, effective from 10th July, 
1991. 
14  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
(4) Where by virtue of this section powers and duties had been 
conferred or imposed upon the Corporation, or officers or authorities thereof, 
there shall be paid by the State Government to the Corporation such sum as 
may be agreed in respect of any extra costs of administration incurred by the 
Corporation in connection with the exercise of those powers and duties.] 
17. Corporation to maintain 1[seven] funds.- The Corporation shall 
establish and maintain 2[seven] separate funds, namely.- 
(a)  Development and Finance Fund; 
(b)  Guarantee Fund; 
(c)  Bad Debts Fund; 
(d)  Relief and Common Good Fund; 
(e)  Grant-in-aid and Subsidies Fund; 3[***] 
(f)  Loans Fund 4[; and] 
5[(g) Additional Functions Fund.] 
18. Land Development and Finance Fund.- Save as otherwise 
provided in sections 19, 20, 21, 6[22, 23 and 23-A]- 
(1)  to the Development and Finance Fund shall be credited all 
amounts that are received by the Corporation from any source 
whatsoever; 
(2)  all amounts that are expended by the Corporation shall be 
debited to this Fund. 
19. Guarantee Fund.- (1) To the Guarantee Fund shall be credited 
every year such sum as may be placed at the disposal of the Corporation for 
that purpose by the State Government and the interest accrued from time to 
time on such sum shall also be added every year to this Fund. 
(2) The Corporation may also contribute to this Fund such portion of 
its net profits as may be decided by the Board. 
 
20. Bad Debts Fund.- To the Bad Debts Fund shall be credited every 
year- 
                                                      
1. Substituted for the word “six” vide H.P. Act No. 16 of 1991, effective from 10th 
July, 1991. 
2. Substituted for the word “six” vide H.P. Act No. 16 of 1991, effective from 10th 
July, 1991. 
3. Omitted the word “and” vide H.P. Act No. 16 of 1991, effective from 10th July, 
1991. 
4. Substituted for the sign “.”vide H.P. Act No. 16 of 1991, effective from 10th July, 
1991. 
5. Clause (g) added vide H.P. Act No. 16 of 1991 effective from 10th July, 1991. 
6. Substituted for the figures and word “22 and 23” vide H.P. Act No. 16 of 1991, 
effective from 10th July, 1991. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  15 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(a)  by the Corporation ten percentum of its net profits; and 
(b)  by the State Governments such amount as grant as may be 
equivalent to the amount credited under clause (a); 
Provided that nothing herein shall be deemed to debar the State 
Government from giving such amount by way of additional grant for being 
credited to this Fund as it may think fit. 
21. Relief and Common Good Fund.- To the Relief and Common 
Good Fund shall be credited every such amount not exceeding eight and half 
percentum of the net profits of the Corporation as the Board may decide. 
22. Grani-in-aid and Subsidies Fund.- All amounts that are received 
by the Corporation from any source by way of grant-in-aid or subsidy shall be 
credited to this Fund and it shall be used by the Corporation for the purposes 
for which such grants-in-aid or the subsidies , as the case may be, have been 
given. 
23. Loan Fund.- All the loan obtained by the Corporation from the 
various sources financial institutions shall be credited to this Fund and shall 
be spent for the purpose for which such loans have been obtained. 
1[23-A. Additional Functions Fund.- All amounts that are received 
by the Corporation from the State Government or from any other source for 
the performance of the additional functions assigned to it under section 16-A, 
shall be credited to this fund and it shall be used by the Corporation for the 
purpose for which such amount has been provided.] 
CHAPTER-V 
LOANS 
24. Power to impose conditions for loans.- In making any loan or 
providing margin money authorized by this Act, the Corporation may impose 
such conditions as it may think necessary or expedient for protecting the 
interests of the Corporation. 
Provided that the rate of interest chargeable on such loans/margin 
money, shall be fixed by the Corporation with the approval of the State 
Government from time to time. 
25. 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 Board that any false or misleading 
information or particular was given in the application for 
loan/margin money; 
                                                      
1. Section 23-A inserted vide H.P. Act No. 16 of 1991, effective from 10th July, 
1991. 
16  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
(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 
interest of the Corporation. 
26. 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 
managing director in the prescribed form, be recoverable as arrears of land 
revenue by the Collector of the district in which the person from whom the 
amount is due resides or carries on business or owns any property, 
(2) The certificate by the managing director under sub-section (1) 
shall be final and conclusive and shall not be called in question before any 
authority or court. 
(3) 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 
debtor before proceeding against the surety. 
1[26-A. Recovery of certain dues of banks as arrears of land 
revenue.- (1) Where a bank, on an application sponsored by the Corporation 
has, under the tie up arrangements with the Corporation, advanced loan to a 
person and such person- 
(i)  makes any default in repayment of loan or advance including 
interest, or any instalment thereof; or 
(ii)  having become liable either under the conditions of the grant 
of loan or under section 25, makes any default in the refund 
or repayment of such loans or any portion thereof; or 
(iii)  otherwise fails to comply with the terms of the agreement; 
then a bank or its authorized officer, by whatever name called, may send a 
certificate in the form given in the schedule to the Collector mentioning the 
sum due from such person and requesting that such sum, together with interest 
accrued upto the date of recovery alongwith the collection charges, be 
recovered as if it were an arrear of land revenue. 
(2) A certificate sent under sub-section (1) shall be conclusive proof 
of the matter stated therein and the Collector on receiving such certificate 
shall proceed to recover the amount stated therein as an arrear of land 
revenue. 
(3) Nothing in this section shall,- 
                                                      
1. Sections 26-A and 26-B inserted vide H.P. Act No. 8 of 1984. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  17 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(a)  affect any interest of the State Government, a banking 
company, a corporation or a Government company in any 
property created by any mortgage, charge, pledge or other 
encumbrance; or 
(b)  bar a suit or affect any right or remedy against any person 
referred to in sub-section (1), in respect of a contract of 
indemnity or guarantee entered in relation to an agreement 
under this Act or the rules framed thereunder or in respect of 
any interest referred to in clause (a) of this sub-section. 
26-B. Collection charges.- A bank availing the services of the 
Collector under section 26-A, shall pay collection charges to the Government 
at such rates as may from time to time be notified by the State Government in 
the Official Gazette.] 
1[27. 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, 2[the 
dues of the Corporation as determined in section 26 and of the bank as 
determined in section 26-A] together with interest accrued thereon and cost of 
recovery shall be the first charge on the property of the debtor and the 
guarantor, if any]. 
CHAPTER-VI 
ACCOUNTS AND AUDIT 
28. Accounts.- (1) The balance sheet and accounts including the 
profit and loss account of the Corporation shall be prepared and maintained in 
such form and manner as may be prescribed. 
(2) The Board shall cause the books and accounts of the Corporation 
to be balanced and closed on the thirty-first day of March each year. 
29. Audit.- (1) The accounts of the Corporation shall be audited once 
in every financial year, by auditors duly qualified to act as auditor under sub-
section (1) of section 226 of the Companies Act, 1956 (1 of 1956), who shall 
be appointed by the Board and shall receive such remuneration from the 
Corporation as the Board may fix. 
(2) The auditors shall be supplied with a copy of the annual balance-
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, 
                                                      
1. Section 27 substituted vide H.P. Act No. 28 of 1979, effective from 20th 
September, 1979. 
2. Substituted for the words “the dues of the Corporation as determined under the 
preceding section of this Act” vide H.P. Act No. 8 of 1984. 
18  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED TRIBES 
DEVELOPMENT CORPORATION ACT, 1979 
 
accounts and other documents of the Corporation and may require from any 
director or officer 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 a 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 State 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-
sections, the accounts of the Corporation as and when it is considered 
necessary and expedient to do so in public interest, may also be audited by an 
agency specifically authorized in this behalf by the State Government from 
time to time and any expenditure incurred by it in connection with such 
examination and report shall be payable by the Corporation to such agency. 
1[29-A. Laying of the annual and audit reports before the State 
Legislative Assembly.- The State Government shall, as soon as may be after 
the annual and audit reports in relation to the working of the Corporation are 
furnished to it by the Corporation under sub-section (4) of section 29, but 
within a period of nine months computed from the close of the financial year 
to which such reports pertain, cause the said annual and audit reports to be 
laid before the State Legislative Assembly.] 
CHAPTER-VII 
MISCELLANEOUS 
30. Dissolution of Board.- (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 report under section 29, call upon the Board 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 Board from such date as may be specified. 
31. Consequences of dissolution of the Board.- (1) When the Board 
is dissolved under section 30- 
(i)  all directors shall, from the date of dissolution, vacate their 
offices; 
                                                      
1. Section 29-A inserted vide H.P. Act No. 8 of 1984. 
  THE HIMACHAL PRADESH SCHEDULED CASTES AND SCHEDULED  19 
TRIBES DEVELOPMENT CORPORATION ACT, 1979 
  
(ii)  all powers and duties of the Board 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 
during the period of dissolution, vest in the State 
Government. 
(2) The Government may, in its discretion, reconstitute the Board 
after such period as it may think fit. 
32. Bar of jurisdiction.- Save as otherwise expressly provided in this 

Excerpt shown. Open the full act in Lexace.

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