LexThe Himachal Pradesh Antyodaya Corporation Act, 1979
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH ANTYODAYA CORPORATION ACT,
1979
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER I
PRELIMINARY
1. Short title.
2. Definitions.
CHAPTER II
INCORPORATION OF HIMACHAL PRADESH ANTYODAYA
CORPORATION AND ITS CAPITAL
3. Establishment of the Himachal Pradesh Antyodaya Corporation.
4. Head office of the Corporation.
5. Capital of the Corporation.
CHAPTER III
MANAGEMENT OF THE CORPORATION
6. Management.
7. Board of Directors.
8. Term of office.
9. Disqualifications for office of Director.
0. Director not to participate in certain cases.
11. Removal and resignation.
12. Meetings.
13. Managing Director.
14. Defect in Appointment not to invalidate acts, etc.
15. Officers and other employees of the Corporatio n.
CHAPTER IV
FUNCTIONS AND FUNDS OF THE CORPORATION
16. Functions of the Corporation.
17. Funds of the Corporation.
18. Development and Finance Fund.
19. Guarantee and Bad Debts Fund.
20. Relief and Common Good Fund.
H. P. ANTYODAYA CORPORATION ACT, 1979
2
21. Grants-in-aid and Subsidies Fund.
22. Loan Fund.
CHAPTER V
RECOVERY OF LOANS AND GRANTS
23. Power to resume grants and call repayment of l oans.
24. Recovery of money due to the Corporation.
25. First charge of Corporation dues.
CHAPTER VI
ACCOUNTS AND AUDIT
26. Accounts.
27. Audit.
28. Dissolution of Board.
29. Consequences of dissolution of the Board.
30. Bar of jurisdiction.
31. Protection of action taken in good faith.
32. Officers and employees to be public servants.
33. Indemnity of Directors.
34. Exemption from registration fee and stamp duty .
35. Power to make regulations.
36. Power to make rules.
37. Power to remove difficulty.
___________
THE HIMACHAL PRADESH ANTYODAYA CORPORATION
ACT, 1979
(ACT No. 17 of 1979)
1
(Received the assent of the President of India on t he 23 rd June, 1979
and was published in R. H. P. Extra., dated the 3 rd July, 1979, p. 1991-2001)
An Act to provide for the establishment of the Hima chal Pradesh
Antyodaya Corporation .
1. For Statement of Objects and Reasons, see R. H. Extra, dated. 12-4-1979. p.
1457. For its Authoritative Hindi Text see R.H.P. E xtra., dated 25-11-1993, p.
2187-2196.
H. P. ANTYODAYA CORPORATION ACT, 1979 3
Amended, replaced or otherwise affected by,-
1. Ord. No. 5 of 1979, published in R. H. P. Extra, dt. 24-9-79, p.
2280-2281, which was replaced by H. P. Act No. 27 o f 1979 1,
assented to by the Governor on 16-11-1979, publishe d in R.H.P.
Extra., dated 22-11-1979, p. 2525-2526.
2. H. P. Ord. No. 2 of 1981 replaced by "Act No. 1 7 of 1981 2
assented to by the Governor on 30-11-1981, published in R. H. P.
Extra., dated 18-11-1981 p. 1023-1024 . Effective w .e.f.
5-6-1981.
BE it enacted by the Legislature of the State of Hima chal Pradesh in
the Thirtieth Year of the Republic of India as follows:-
CHAPTER I
PRILIMINARY
1. Short title .- This Act may be called the Himachal Pradesh
Antyodaya Corporation Act, 1979.
2. Definitions .-In this Act, unless there is anything repugnant i n the
subject or context,-
(a) "agricultural development" includes developmen t of agriculture,
horticulture, forestry, dairy, poultry, piggery, sh eep and cattle
breeding, pisciculture, sericulture and allied avocations;
(b) "antyodaya family" means a family and members thereof
identified by the competent authority as such in ac cordance
with the norms prescribed by the State Government i n the
notification published in the Official Gazette;
(c) 3[“bank” means,-
(i) a banking company as defined in the Banking Reg ulation
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 Ban k of India
(Subsidiary Banks) Act, 1959 (38 of 1959);
(iv) a Regional Rural Bank established under the R egional
Rural Banks Act, 1976 (21 of 1976);
(v) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings )
1. For Statement of Objects and Reasons, see R. H. P., Extra, dt. 3-11-1979, p.
2449.
2. For Statement of Objects and Reasons see R. H. P . Extra, dt. 26-9-81, p. 851.
3. Sub. by Act No. 27 of 1979, [Sec. 2 (a)].
H. P. ANTYODAYA CORPORATION ACT, 1979
4
Act, 1970 (5 of 1970);
(vi) any banking institution notified by the Centra l
Government under section 51 of the Banking Regulati on
Act, 1949 (10 of 1949);
(vii) the Agricultural Refinance and Development Co rporation
constituted under the Agricultural Refinance and
Development Corporation Act, 1963 (10 of 1963);
(viii) the Agro-Industries Corporation as defined i n clause (c)
of section 2 of the Himachal Pradesh Agricultural C redit
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;]
(d) "Board" means the Board of directors of the Cor poration;
(e) "Chairman" and
1["Vice Chairman"] means the Chairman and
2[Vice-Chairman] of the Corporation;
(f) "committee" means a committee appointed under section 6(2)
of this Act;
(g) "competent authority" means such officer specia lly empowered
by the State Government to discharge the functions of a
competent authority for the purposes of this Act;
(h) "Corporation" means the Himachal Pradesh Antyod aya
Corporation established under section 3 of this Act;
(i) "Central Government" means the Government of In dia;
(j) "Director" means a director of the Board and i ncludes the
Chairman 3[and the Vice-Chairman];
(k) "margin money" means the money required as the share of the
beneficiary for granting financial assistance by th e financial
banking institutions and other organisations;
(l) "marketing" means all activities relating to t he transport,
grading, pooling, marketing and sale of agricultural or industrial
produce, whether in the primary form or in semi-pr ocessed or
1. Sub. vide Act No. 27 of 1979, [Sec. 2 (b)].
2. Ins. vide Act No. 27 of 1979.
3. Ins. vide Act No. 27 of 1979.
H. P. ANTYODAYA CORPORATION ACT, 1979 5
processed form;
(m) "prescribed" means prescribed by rules made und er this Act;
(n) "processing" means all activities relating to t he processing of
agricultural produce so as to make it marketable or fit for
consumption and includes purchase and storage of r aw
material, purchase of equipment, and purchase, installation and
running of machinery, required for such processing and storage
of finished produce;
(o) "small scale industry" means all cottage and sm all scale
industries including house-hold industries where th e members
of the house-hold are engaged in the manufacture, r epairs,
maintenance and fabrication of various types of goo ds,
machinery and equipments;
(p) "State Government" means the Government of Hima chal
Pradesh; and
(q) "trade and business" means a commercial activit y involving
sale, purchase and manufacture of goods and other s aleable
articles for economic gain.
CHAPTER II
INCORPORATION OF HIMACHAL PRADESH ANTYODAYA
CORPORATION AND ITS CAPITAL
3. Establishment of the Himachal Pradesh Antyodaya
Corporation .- (1) The State Government may, by notification from such 1 date
as it may specify in this behalf, establish for the purposes of this Act a
Corporation to be called the Himachal Pradesh Antyodaya 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 and be sued.
2[(3) If the State Government is satisfied that eith er the Corporation
has made default in performing of any duty imposed on it by or under this
Act, or it is expedient so to do in the public inte rest, the State Government,
notwithstanding anything to the contrary contained in the Act, may, by order
in writing published in the Official Gazette, supersede the Corporation.
(4) After the supersession of the Corporation and u ntil it is
reconstituted, the powers, duties and functions of the Corporation and its
Board under this Act shall be carried on by the Sta te Government or by such
1. Corporation established w.e.f. 2-10-1979 vide No t. No. Uday-ka (4)4/ 9 dated
29-9-79 published in R. H. P. Extra dated 11-10-1979 p. 2378.
2. Sub-sections (3) to (6) added vide Act No. 17 of 1981 (effective w.e.f. 5-6-1981)
H. P. ANTYODAYA CORPORATION ACT, 1979
6
officer or officers as the State Government may appoint for this purpose.
(5) Notwithstanding anything to the contrary contai ned in the
preceding sub-sections or in the Act, the State Gov ernment may, by
notification in the Official Gazette, declare that with effect from such date as
may be specified in the notification, the Corporation shall be dissolved.
(6) With effect from the date specified in the noti fication under
sub-section (5)-
(a) all properties, funds and dues which are vested in or realizable
by the Corporation shall vest in and be realizable by the State
Government;
(b) all liabilities enforceable against the Corpor ation shall be
enforceable against the State Government to the ext ent of the
properties, funds and dues vested and realised by the State
Government.]
4. Head Office of the Corporation .- (1) The Head Office of the
Corporation shall be at Shimla or at such other pla ce as the State Government
may specify by notification.
(2) The Corporation may establish its Sub-Offices or agencies at such
places within or outside Himachal Pradesh as it may think fit.
5. Capital of the Corporation . - (1) The capital of the Corporation
shall be such sum, not exceeding five crores of rup ees, as the State
Government may fix:
Provided that where the capital initially fixed is less than five crores
of rupees, the State Government may, from time to t ime, increase the capital
to such sum not exceeding five crores of rupees, as it may think fit.
(2) Such capital may be provided, subject to such t erms and
conditions, as may be determined, by the State Government from time to time.
Explanation .-For the purpose of this section the expression "c apital"
shall not include grants-in-aid, subsidies or gifts received by the Corporation
for the specified purpose(s).
CHAPTER III
MANAGEMENT OF THE CORPORATION
6. Management .- (1) The general superintendence, direction and
management of the affairs and business of the Corpo ration shall vest in a
Board 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) Subject to any rules made in this behalf, the B oard may from time
to time appoint one or more committees for the purp ose of securing the
efficient discharge of its functions.
H. P. ANTYODAYA CORPORATION ACT, 1979 7
(3) The Board in discharging its functions shall ac t on such principles
which shall be in consonance with the policy of the Government having
regard to public interest, welfare of antyodaya fam ilies and solvency of the
Corporation and shall be guided by such instruction s on question of policy as
may be given to it by the State Government.
(4) 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.
7. Board of Directors .- (1) The Board shall consist of nine Directors
who shall be nominated by the State Government:
Provided that the Chief Minister, Himachal Pradesh, shall be
ex-officio Director and Chairman of the Board:
Provided further that not less than two Directors s hall be nominated
from amongst the persons who have special knowledge of rural conditions of
Himachal Pradesh and interest in the upliftment of antyodaya families:
1[Provided further that if it is expedient so to do the State Government
may nominate any of the Directors to be the Vice-Ch airman of the Board and
he shall perform such duties and exercise such powe rs as may be assigned to
him or conferred upon him, as the case may be, by t he Board under sub-
section (3) of section 15 of the Act.]
(2) On the occurrence of any vacancy in the Office of a director 2[or
the Vice Chairman] due to death, resignation or oth erwise, the same shall be
filled up by the State Government in the manner provided in sub-section (1).
(3) Subject to the provisions of this Act, the term s and conditions of
appointment of the directors 3[and the Vice-Chairman] and the fees and
allowances payable to them, shall be such as may be prescribed.
8. Term of Office .- The term of office of the directors, other than the
Chairman and the managing director shall be three y ears and they shall be
eligible for reappointment.
9. Disqualifications for office of Director .- A person shall be
disqualified for being nominated as, and for being a director-
(a) if he is or at any time has been adjudicated in solvent or has
suspended payment of his debts or has compounded wi th his
creditors;
(b) if he is of unsound mind and stands so declare d 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
1. Proviso added vide Act No. 27 of 1979, (Sec. 3 (a).
2 . Ins. vide Act No. 27 of 1979, Sec. 3 (b).
3 . Ins. vide Act No. 27 of 1979, Sec. 3(c).
H. P. ANTYODAYA CORPORATION ACT, 1979
8
(d) if he has been removed or dismissed from the s ervice of any
State Government or Central Government or a Corpora tion
owned or controlled by any State Government or Cent ral
Government.
10. Director not to participate in certain cases .- A director who has
any direct or indirect pecuniary interest in any ma tter coming up for
consideration at a meeting of the Board or a commit tee 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 meeting of the Board or the committee, as the
case may be, and the director shall not take any pa rt in any deliberation or
decision of the Board or the committee with respect to that matter.
11. Removal and resignation .- (1) The State Government may, at
any time, remove any director from office, if in its opinion such director-
(a) is or has become subject to any disqualificatio n mentioned in
section 9;
(b) is absent without leave of the Board from more than three
consecutive meetings thereof without a cause suffic ient in the
opinion of the Board to exonerate his absence;
(c) has acted in contravention of the provisions o f section 10; or
(d) has been found guilty for any other reason whi ch may be
considered sufficient by the Board:
Provided that no order of removal shall be passed w ithout giving the
director a reasonable opportunity of showing cause against the proposed
order.
(2) A director may resign his office by giving notice thereof in writing
to the State Government and on such resignation bei ng 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 of procedure in regard to the transaction of business
at its meetings (including the quorum at meetings) as may be provided by
regulations made by the Corporation under this Act.
1[(2) The Chairman, 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 every meeting of the Board.]
(3) All questions which come up before any meeting of the Board
shall be decided by a majority of votes of director s present and voting, and in
the event of an equality of votes, 2[The Chairman, the Vice-Chairman or the
1. Subs. vide Act No. 27 of 1979, sec. 4(a)
2. Subs. vide Act No. 27 of 1979, sec.4(b)
H. P. ANTYODAYA CORPORATION ACT, 1979 9
person presiding, as the case may be], shall have a nd 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 Gov ernment, as managing
director who shall hold that office during its pleasure.
(2) The managing director 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 polic ies
approved by the Board;
(c) perform such duties as the Board may by regula tions or
otherwise assign to him;
(d) receive such salary and allowances and be gove rned by such
terms and conditions of service as may be determine d by the
Board and approved by the State Government.
(3) If the managing director is by infirmity or oth erwise rendered
incapable of carrying out his duties or is absent o n leave or otherwise in
circumstances not involving the vacation of his app ointment, the State
Government may appoint another director who is an o fficer of the State
Government 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 sh all be questioned or be
invalid on the ground merely of 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 inval id, 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 appoin tment and service and the
remuneration payable to them.
(2) The Board shall, in respect of reservation of a ppointments, and
posts in favour of the members of scheduled castes, scheduled tribes,
backward classes and antyodaya families, comply wit h such directions, as
may be issued by the State Government, from time to time, for ensuring
adequate representation to such members in the service under the Corporation.
(3) The Board may, by general or special order, del egate to the
H. P. ANTYODAYA CORPORATION ACT, 1979
10
chairman, 1[the Vice-Chairman], the managing director, directo r or to any
other officer or employee of the Corporation, subje ct to such conditions and
limitations, if any, as may be specified, such of i ts powers and duties under
this Act, except the power to make regulations, as it may deem necessary.
CHAPTER IV
FUNCTIONS AND FUNDS OF THE CORPORATION
16. Functions of the Corporation .- (1) Subject to the provisions of
this Act, it shall be the primary duty of the Corpo ration to undertake the task
of upliftment of antyodaya families.
(2) Without prejudice to the generality of the fore going provisions,
such functions shall include the functions-
(i) to plan, promote and undertake, on its own or in collaboration
with or through other agencies whether governmental and
non-governmental, programmes of agricultural develo pment,
marketing, processing, supply and storage of agricu ltural
produce, small scale cottage and village industries , trade and
business or any other activity which will, in the o pinion of the
Board, enable the members of the antyodaya families to earn a
better living and help in the upliftment of their e conomic
condition;
(ii) to undertake programmes for setting up employ ment-oriented
industries by providing financial, technical and ma nagerial
assistance and any other assistance which will be r equired in
achieving this objective;
(iii) to provide financial assistance to the membe rs of the antyodaya
families by advancing or arranging loans and by pay ing margin
money for any of the purposes which will generate i ncome to
such families;
(iv) to give grants and subsidies to, and to guara ntee loans, taken by
the members of antyodaya families and such other organisations
for the benefit of Antyodaya families;
(v) to arrange for the training of skills with a v iew to provide
gainful employment to the members of antyodaya families;
(vi) to act as an agency of the State or the Centr al Government for
disbursement of aid in cash or in kind to the antyodaya families;
(vii) to arrange for publicity and marketing of the finished goods
manufactured by the antyodaya families;
1. Ins. vide H.P. Act No. 27 of 1979, sec. 5.
H. P. ANTYODAYA CORPORATION ACT, 1979 11
(viii) to borrow money from commercial banks or fro m any other
organisation, including Government, subject to such conditions
as the Board may specify;
(ix) to receive gifts, grants and donations and to issue bonds and
debentures;
(x) to draw, make, accept, endorse, discount, exec ute and issue
promissory notes, bills of exchange, hundies, bills warrants,
debentures and other negotiable instruments;
(xi) to invest or deposit surplus funds of the Cor poration in
Government securities or in such other manner as th e Board
may decide;
(xii) to enter into contracts;
(xiii) to provide facilities for survey; research a nd study in relation to
the problems relating to upliftment of the antyoday a families
with a view to promote programmes for providing gai nful
employment to the members thereof;
(xiv) to undertake such other functions as are supp lemental,
incidental or consequential to any of the functions conferred on
it under this Act or the rules made thereunder; and
(xv) to undertake such other programmes and dischar ge such other
functions as may be prescribed by the State Governm ent, from
time to time.
17. Funds of the Corporation .- The Corporation shall establish and
maintain the following funds, namely:-
(a) Development and Finance Fund;
(b) Guarantee and Bad Debts Fund;
(c) Relief and Common Good Fund;
(d) Grants-in-aid and Subsidies Fund; and
(e) Loan Fund.
18. Development and Finance Fund .- Save as otherwise provided in
sections 19, 20, 21 and 22,-
(1) all amounts that are received by the Corporati on from any
source, whatsoever, shall be credited to the Develo pment and
Finance Fund.
(2) all amounts that are expended by the Corporati on shall be
debited to this Fund.
19. Guarantee and Bad Debts Fund .- The Guarantee and Bad Debts
Fund shall consist of-
H. P. ANTYODAYA CORPORATION ACT, 1979
12
(i) the funds placed at the disposal of the Corpor ation by the State
Government as grant for this purpose;
(ii) ten per cent of its own profits;
(iii) the interest accrued, from time to time, on this Fund;
(iv) such money as may be contributed to this fund specifically by
any agency, organisation and by the Corporation its elf, as may
be decided by the Board:
Provided that nothing herein shall be deemed to deb ar the State
Government, the Central Government or any other org anisation or agency
from giving such amounts by way of grant or donatio n for being credited to
this Fund.
(2) This Fund shall be used in connection with furn ishing of
guarantees in respect of loans taken by the members of antyodaya families or
organisations and to meet irrecoverable debts of th e Corporation in such
manner as may be prescribed.
20. Relief and Common Good Fund .- (1) To the Relief and
Common Good Fund shall be credited every year such amount, not exceeding
ten percent of the net profits, if any of the Corpo ration, as the Board may
decide:
Provided that nothing herein shall be deemed to deb ar the State
Government, Central Government or any other organis ation from giving such
amount by way of additional grant for being credite d to this Fund as it may
think fit.
(2) The Relief and Common Good Fund shall be used for the
purposes in connection with the welfare of the members of antyodaya families
in such form and manner as may be decided by the Board.
21. Grants-in-aid and Subsidies Fund .- To Grants-in-aid and
Subsidies Fund shall be credited amounts as may be received from the State
Government, the Central Government or any other org anisation/agency to be
spent for a specified purpose by way of grant/subsi dy to the antyodaya
families or organisations for their economic upliftment. The conditions, if any,
imposed by the guarantor shall be adhered to in the utilisation of this Fund.
22. Loan Fund .- The loans raised or obtained by the Corporation
from the financial institutions/banks and the State or the Central Government
or any other agency shall be credited to this Fund. The Loan Fund shall be
used for the purpose of advancing loans at such rat e of interest as may be
determined, and on such conditions as may be impose d, by the Board for
protecting the interest of the Corporation.
H. P. ANTYODAYA CORPORATION ACT, 1979 13
CHAPTER V
RECOVERY OF LOANS AND GRANTS
23. Power to resume grants and call repayment of lo ans.-
Notwithstanding anything to the contrary contained in any agreement, the
Corporation may, by notice in writing, require any beneficiary, including a
guarantor and a debtor, to discharge forthwith, in full or any part of the
amount advanced to him as subsidy, grant, loan or i n any other fund, to the
Corporation-
(a) if it appears to the Board that any false or m isleading
information or particular was given by the beneficiary before or
at the time of receiving the benefit;
(b) if the recipient has failed to comply with any of the terms of
such grants, subsidy or loan imposed by the Corpora tion at the
time of payment;
(c) if he contravenes any of the provisions of the agreement or
conditions imposed by the Corporation at the time of advancing
such loan or making such grant, as the case may be;
(d) if there is reasonable apprehension that the be neficiary is unable
to utilise the money for the purpose for which it has been given;
or
(e) if for any other reason it is necessary to do so to protect the
interest of the Corporation.
24. Recovery of money due to the Corporation .- (1) Where any
amount is due to the Corporation from any person, i ncluding the surety of a
debtor, in respect of loans, advances, grants, subs idies or any other financial
accommodation granted by it, such amount shall on a certificate being issued
by the managing director in the prescribed form, be recoverable as arrears of
land revenue by the Collector of the district in wh ich the person from whom
the amount is due resides or carries on business or owns any property.
(2) The Certificate issued 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 the loan or any other advance, it sha ll not be necessary to
proceed against the principal before proceeding against the surety.
25. First charge of Corporation's dues .- Notwithstanding anything
contained in any law for the time being in force, b ut subject to the provisions
in any law made by the Parliament relating to prior ity of charges and to any
prior claim of a bank or of the Government in respe ct of land revenue or any
money recoverable by it as arrears of land revenue, the dues of the
Corporation as determined under the preceding secti on of this Act together
H. P. ANTYODAYA CORPORATION ACT, 1979
14
with interest accrued thereon and costs of recovery shall be the first charge on
the property of the debtor and the guarantor if any.
CHAPTER VI
ACCOUNTS AND AUDIT
26. 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 Board shall cause the books and accounts of the Corporation
to be balanced and closed on the thirty-first day of March each year.
27. 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 Board and shall receive s uch remuneration from the
Corporation as the Board may fix.
(2) The auditors shall be supplied with a copy of t he annual balance-
sheet and the profit and loss account of the Corpor ation 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 th em 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
director or officer of the Corporation such informa tion as the auditors may
think necessary for the performance of their duties as auditors.
(3) The auditors shall make a report to the Corpora tion upon the
annual balance-sheet and accounts examined by them and in every such report
they shall state whether, in their opinion, the bal ance 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 t he relevant year and the
State Government shall lay them as soon as possible before the Legislative
Assembly while it is in session for the total perio d of ten days which may be
comprised in one session or in two or more successive sessions.
(5) Without prejudice to anything contained in the preceding sub-
sections, the accounts of the Corporation, as and w hen it is considered
necessary and expedient to do so in public interest , may also be audited by an
agency specifically authorised in this behalf by th e 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.
H. P. ANTYODAYA CORPORATION ACT, 1979 15
CHAPTER VII
MISCELLANEOUS
28. Dissolution of Board .- (1) No provision of law other than this
Act, relating to the winding up, dissolution or liq uidation of the companies or
corporations shall apply to the Corporation.
(2) The State Government may, if the Corporation e xceeds its
powers, or upon receipt of a report under section 2 7, call upon the Board to
show cause why it should not be dissolved, and if n o 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.
29. Consequences of dissolution of the Board .-(1) When the Board
is dissolved under section 28-
(i) all directors shall, from the date of dissolut ion vacate their
offices;
(ii) all powers and duties of the Board shall, dur ing the period of
dissolution, be exercised and performed by such per son or
persons as the State Government may appoint in this behalf;
(iii) all funds and other property vested in the Co rporation shall,
during the period of dissolution, vest in the State
Government.
(2) The State Government may, in its discretion, re constitute the
Board after such period as it may think fit.
30. 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 pow er conferred by or under
this Act.
31. Protection of action taken in good faith .- No suit or other legal
proceedings shall lie against the Corporation or an y director including the
managing director, or any officer or employee or an y other person authorised
by the corporation to discharge any functions under this Act for any loss or
damage caused or likely to be caused by anything wh ich is in good faith done
or intended to be done in pursuance of this Act.
32. Officers and employees to be public servants .- The managing
director and other employee of the Corporation shal l be deemed to be public
servants within the meaning of section 21 of the Indian Penal Code.
33. Indemnity of Directors .- (1) Every director shall be indemnified
by the Corporation against all losses and expenses incurred by him in the
H. P. ANTYODAYA CORPORATION ACT, 1979
16
discharge of his duties except such as are caused b y his own wilful act or
default.
(2) A director shall not be responsible for any oth er director, or for
any officer or 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 take n on behalf of the
Corporation in good faith, or anything done in good faith, in the execution of
the duties of his office or in relation thereto
34. Exemption from registration fee and stamp duty .-All
instruments executed by or on behalf of the Corpora tion in relation to the
discharge of its functions shall be exempted from p ayment of stamp duty and
registration fee:
Provided that exemption from payment of stamp duty shall apply in
the case of such instruments only as are specified in Schedule I-A to the
Indian Stamp Act, 1899 (2 of 1899) 1
35. Power to make regulations .-(1) Subject to the rules framed by
the State Government under section 36, the Board ma y, from time to time,
make regulations not inconsistent with this Act and the rules made thereunder
for the purpose of giving effect to the provisions contained in this Act.
(2) In particular and without prejudice to the gene rality of the
foregoing power such regulations may provide for-
(a) the time and places of meetings of the Board a nd the procedure
to be followed in relation to such meetings, includ ing the
quorum necessary for the transaction of its business;
(b) the conditions which the Corporation may impos e in granting
loans or entering into other arrangements;
(c) the rate of interest on loans;
(d) duties which the managing director shall perfo rm;
(e) the duties, conduct, salary, allowances and co nditions of
service of officers and other employees of the Corporation;
(f) the delegation of powers and functions to the officers and
employees of the Corporation;
(g) the establishment and maintenance of provident and other
benefit funds, for the officers and employees of th e
Corporation; and
(h) generally, the efficient conduct of the affair s of the Corporation.
1. Subs vide H. P. Act. No. 27 of 1979. Sec, 6.
H. P. ANTYODAYA CORPORATION ACT, 1979 17
36. Power to make rules .- (1) The State Government may, by
notification, make rules to carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the gene rality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:-
(a) the fixation of norms for the identification o f antyodaya
families under clause (b) of section 2;
(b) the terms and conditions of appointment of dir ectors 1[and the
Vice Chairman] and the fees and allowances payable to them;
(c) the programmes and functions to be executed an d discharged by
the Corporation under clause (xiv) of sub-section ( 2) of section
16;
(d) the form in which certificate shall be issued by the managing
director, and the procedure that shall be observed in
determining the amount under section 24;
(e) the form and manner in which accounts shall be maintained,
and the balance-sheet and profit and loss account s hall be
prepared;
(f) any other matter which is required to be or ma y 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 w hile 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, Assem bly agrees to make any
modification in the rule or decides that the rule s hould not be made, the rules
shall thereafter have effect only in such modified form or be of no effect, as
the case may be, so, however, that any such modific ation or annulment shall
be without prejudice to the validity of anything pr eviously done under that
rule.
37. Power to remove difficulty .-If any difficulty arises in giving
effect to the provisions of this Act, the Governmen t may, by order published
in the official Gazette, make such provisions or g ive such directions, not
inconsistent with the provisions of this Act, as ma y appear to it to be
necessary or expedient for the removal of such difficulty.
__________
1. Ins. vide H. P. Act No. 27 of 1979, Sec. 7.