Punjab act 009 of 1970 : The Punjab SC LDF-ACT 1970

GOVERNMENT OF PUNJAB

DEPARTMENT GF LEGISLATIVE AFFAIRS

The Punjab Scheduled Castes Land Development and Finance Corporation Act, [970

(Punjab Act No. 9 of 1976) (As amended upto October, 1980)

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2 abe dle fd P

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THE PUNJAB SCHEDULED CASTES LAND DEVELOPMENT

AND FINANCE CORPORATION ACT, 1970

(Punjab Act No. 9 of 1970)

ARRANGEMENT OF SECTIONS

Sections |

10.

il.

12.

13.

1 4.

15.

CHAPTER f Preliminary Short title Definitions |} . CHAPTER Il

Incorporation of Punjab Scneduled and Finance Corporction and its Capital Establishment of Punjab Scheduled Castes Land Development and Pinaace Corporation Head Office of Corporation

Authorised Capital

CHAPTER If

Management of the Corporation

Management

Board of directors

Term of office

Disqualification of office of direcior Director not to participate im certain cases Removal and resignation |

Meetings

Executive Director

Defect in appsintment not to iavalidate acts, etc. Officers and other employees of — the Corporation Pages

1-2

Castes Land Development

"9 Nn 5-6

16.

CHAPTER IV

Functions and Funds of the Corporation FPunctiors of Carporation

16-A. Capital of the Corporation

18.

19,

20.

21.

22.

23.

24.

Z5.

26.

ots

28.

29.

30.

31.

ois

33.

Corporation to maintain four funds Land Development and Finance Fund © Guarantee Pund

Bad Debts Fund

Relief and Common Good Fund

CHAPTER V

Loans

bower to impose conditions for loans Power ta call repayment before agreed period Recovery of money due to the Corporation Pirst charge of Corporation's loans on debtor's property

CHAPTER VI

Accounts and Audit Accounts

Audit

CHAPTER Vil

Miscellaneous Dissolution of Board Consequences of dissolution of the Board Bar of jurisdiction

Protection of action taken in good faith Indemnity of directors

Exemption from registration fee and stamp duty Power to make regulations

Power to make rules

Pages

Oo Oo

9-10

10-11

1]-12 11-12

iITHE PUNJAB SCHEDULED CASTES LAND DEVELOPMENT AND

FINANCE CORPORATION ACT, 1970

(Puniah Act No. 9 of 1970) [Received the assent of the Governor of Punjab on the 16th September, 1970, and first published in the Punjab Government Gazette (Extraordinary), Legislative Supplement, Part I. of the 16th September, 1970.]

ACT

to provide for the establishment of the Pur:jab Scheduled Castes Land Development and Finance Corporation.

BE it enacted by the Legislature of the State of Punjab in the Twenty- first Year of the Republic of India as follows :—

CHAPTER I

PRELIMINARY

1. This Act may be called the Punjab Scheduled Castes Land Develop- short tite. ment and Finance Corporation Act, 1970.

2. In this Act, unless there is anything repugnant in the subject or Defiuitions. context,—

(a) "agricultural development" includes development of dairy, poultry, pigsery, sheep and cattle breeding, pisciculture and sericulture ;

(b) "Board" means the Board of directors of the Corpofation ;

(c) "Chairman"? means the Chatrman of the Corporation > (d) "Corporation '' means the Punjab Scheduled Castes Lard Develop- ment and Finance Corporation ;

(e) "director" means a director of the Board and includes the Chairman ;

(f) "Governor" means the Governor of the State of Punjab ; (zg) "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

(h) "prescribed" means prescribed by rules made under the Act ; 1For Statement of Objects and Reasons, see PUNJAB GOVERNMENT GAZETTE (EXTRA- ORD INARY), 1970, page 782.

Establishment of Punjab Scheduled Castes Land

Development and Finance Corpora- tion.

Head office of Corporation. Authorised capital,

(i) "processing" means all activities relating to the processing of agri- cultural produce so as to meke 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 ;

(j) "Scheduled 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 ;

(k) "Scheduled Castes Organisation" means a firm registered under the Partnership Act, 1932, an association registered under the Societies Registration Act, 1860, or a co-operative society regis- tered under the Punjab Co-operative Societies Act, 1961, all the partners or members, whereof, as the case may be, belong to Scheduled Castes ;

(J) ''small-scale industry' means all cottage and small-scale industry including industry engaged in fabrication, repairs and maintenance of agricultural machinery and equipment, in which capital invest- ment does not exceed five lacs of rupees ; and

(m) "'supply and storage" means supply and storage of agricultural inputs and establishment, maintenance and running of storages, cold storages and warehouses.

CHAPTER

{INCORPORATION OF PUNJAB SCHEDULED CASTES LAND

DEVELOFMENT AND FINANCE CORPORATION AND

ITS CAPITAL

3. (1) With effect from such date as the State Government may. by notification, snecify in this behalf, the State Government may establish for the p' "pose of this Act a Corporation known as the Punjab Scheduled Castes Land Development and Finance Corporation.

(2) The Corporation shall be a body corporate with the name aforesatd having perpetual succession and a common seal with powers. subject to the provisions of this Act. fo acquire, hotd and dispose of property 7nd to contract, and may. by that name,-sue or be sued.

4. (1) The head office of the Corporati such other place as the State Cover ation shall be at Chandigarh or at ernment may, by notification, specify. L

(2) The Corporation may establish offices or agencies at such places within or cutside the State as it ma: fi

5. The authorised capital of the Corporation shall be such sum not less than ten crores of rupees as the State Government may fix.] 1Substituted by Punjab Act No. 16 of 1979, Section 2.

CHAPTER III

MANAGEMENT OF THE CORPORATION

6. (/) The general superintendence, direction and management of the Management. affairs ana business of the Corporation shall vest ina Board of Directors which may exercise all such powers and do all such acts and things as may be exer- cised Or dune by (he Corpordiiont under this Act.

(2) The Board of Directors in discharging its functions shall act on sound business principles having regara to public interest, welfare of Scheduled Castes and solvency of the Corporation and shall be guided by such ir isuctions on { questions of policy as may be given to it by the State Governmeni. ™

)

(3) [f any doubé arises as lo whether a question is or is not © question of policy the decision of the State Government thereon shall be fini,

7. fl) Tite Board of Directors shall consist of am Executive Director Board of Directors, and the following other directers, namely -—

(a) The Seeretary to Government of Punjab it the Department of Welfare or an officer of Chat Department not below the rank of Deputy Sceretary to Government of Panjab or Joint Director nominated by him, ex-officio ;

(b) Vhe Secretary to Government of Punjab in the Pepartment of Vinance or an officer of thar Department not below the rank vl Deputy Scevetary to Government of Panjab or Jo'nt Director nominated by him, ex-officio ;

(c) The Secretary to Government of Punjab in the Department — of Agriculture or am officer of that Department nor boow the rank of Deputy Secretary to Government of Punjab or soint Director nominated by lum, ex-officio ;

(/) Vhe Svereiry to Govertitent of Punjab tm the tf partment of lndusiries or an oliicer of that Department not belo the rank of . Deputy Seeretary to Government of Punjab or Joint Director nominated by him, ex-officio; ties, " ,

(e) .\n officer front the Minisay of Home Affairs, Coverriment of India nonitared by that Government, ex-officio

(f) Vive other directors, belonging to the Schedulad Castes, (o be nominadced by the State Government from amongst persons who have knowledse of agriculuure, agro-industiies. water develop- ment projects, fu1ace Or co-operation or who are secial werkers.]

(2) Vhe Governor shall appoint one-or the directors as Chiirmon.

(3) Onthe occurrence of any vacaricy in the oMce of a Cirector due (9 death, resignation or othewise the seme shall be fiillea up by he Governor in the manner provided in sub-section (1).

2. In the Punjab Seheduled Castes Land Developnent Amendnent of Section ang Fane G Corporation Act, 1970, in section ", in sub-section 7 of Punjab Act 9 of |) for clause (e), the following clause shall be substituted 1970. lane ty = - By ~~

! "(e) 'Iwo Offieers of the Government of India

nanineted by tha. Government, ex-officio."

)

(4) Subject to the provisions of this Act, the terms and conditions of appointment "of the directors and the fees and™alowances payable to them, shall be such as may be prescribed.

Term of office, 118. The term of office of the directors other than the Executive Director and the ex-officio directors shall be ose year and they shall be eligible for reappointment :

Provided that the Executive Director may be rcmoved by the Government at any time notwithstanding anything contained in section 11,]

Disqualification of ' : : . .

office of ditestr. 9. 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 sus- peuded payment of hisdebts or has compounded with his creditors ;

(b) if he 1s ofunsound mind and stands so declared by a competent court 5

(c) if hs is or has been convicted of any cflence which in the opinion of the State Government involves moral turpitude ; or

(d) if he has beer 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 . Director not to 1G. A director who has any direct or indirect pecuniary imterest in eny Participate in matter coming up for consideration at a meeting of the Board or a Committee certain cases, thereof shall, as soon as possible, after the relevant circimstances have come to his knowledge disclose the mature of his interest at such meeting and the disclosure shal! be recorded in the minutes of the Board or the Commit- tee, as the case may be, and the director shall noi take any part in any deli- beration or decision of the Board or the Committee with respect to that matifer.

Substituted by Punjab Act No. 16 of 1975, Section 4.

Section 10 of the Punjab Act No. 16 of 1979 reads as follows :—

Nexe vera of office 'For the temoyal of doubts it is hereby declared that the term of office of the O apply to existing Gsacy ane pact : = Neinein + le ; te . 13 wieeetoss ale trectors Jaid down in the principal Act, as am néed by this Act, shall also apply to cach director, other than the Executive Director and the c.-officio director, holding

office on che date of commencement of this Act, and accordingly any ditector holding

Oftice as such on che date of commencement of this Act shall, —

(i) ifthe term: of office of one yearin his case expires Or has expired on or before such commencement, cease to hold his office on such commencement ; and

(ii) ip che term of office of one year ja bis casa expires after such commence- rasitt, ceas3 to hold his office oa the exoiry of the aforesaid term.''

_., 21. (/) The Governor may at any timeremove any director from office, Removal and if in his opinion such director— . resignation.

(5) is absent without leave of the Board from more than three conse- cutive meetings thereof without cause sufficient, in the opinion of the Board to exonerate his absettce ;

(d) has been guilty of misconduct in the discharge of his duties Provided that no order of remoyal shall be passed without giving the director areasonable opportunity of showing cause against the proposed urder.

1f1-A. If the Board fails to carry out its functions, or refuses or fails to follow the instructions given to it by the State Goverment, for the purpose of giving effect to the provisions of this Act, the State Government may remove the non-official directors including the Chairman and appoint other directors and the Chairman in their places.]

(2) 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. (J) The Board shall meet at such times and places and shall observe Meetings. such rules or procedure inregard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation wnder this Act. © :

(2) The Chairman of the Board or if for any reasou he is unable to attend any meeting any other director elected bythe directors pre: ont at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the Board shall be decided by a majority of the votes of directors present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the per- son presiding, shall have and exercise a second or casting vote.

13. *[(1) The Governor shall appoint an officer of the State Government Executive Director. as Executive Director who shall hold that office during his pleasure.]

(2) The Executive Director who shall be a whole-time officer of the Cor- poration shall—

~ (a) beits Chief Executive Officer ;

(b) be responsible for the operational management of the Corporation and implemeutation of the general policies approved bythe Board ; 1Added by Punjab Act No. 16 of 1979, Section 5. 3A.dded by Punjab Act No. 16 of 1979, Section 6.

(2) 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,

(3) If the Executive Director is by infirmity or otherwise rendered in- capable of carrying out his duties or is absent on leave or otherwise in cir- cumstances not involving the vacation of his appointment, the Governor may appoint another person to act in his place during his absence. Defect in 14. (J) No act or proceeding of the Board or any of its Committees appointment not to shall be questioned or be invalid on,the ground merely of the existence of any validate acts, 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.

(itoers anal other 15. (J) The Board may appoint such officers and employees as it employees of the COnsiders necessary for the efficient performance of the functions. of the Corporation. Corporation and determine by rogulations or otherwise their conditions of appointment and service and the remuneration payable to them.

(2) The Board may, by general or special order, delegate to the Executive 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.

CHAPTER IV

FUNCTIONS AND FUNDS OF THE CORPORATION

Poaciiogs of 16. (1) Subject to the provisions of this Act, it shall be the primary Corporation. duty of the Corporation to undertake the task of economic uplift of the members of the Scheduled CaStes in the State.

(2) Without prejudice to the generality of the foregoing provision, such power shall include the power—

_ (i) to plan, promote and undertake, on its own or in collaboration with or through such Scheduled Castes Organisations or. other agencies as may be approved by the Board, programmes of agri- cultural 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 benalf by the State Government ;

(ii) to provide financial assistance to members of Scheduled Castes or Scheduled Castes Organisations by advancing to them in cash or in kind loans including loans under. hire-purchase system

for any of the purposes specified in clause (7) either directly or through such agency, organisation or institution as may be approved by the Board 3

Gii) to give on hire agricultural or industrial machinery or equip- ment to the members of Scheduled Castes or Scheduled Castes Organisauions 5

(ivy) to give grants and subsidics to, and to guarantee loans taken by, the members of Scheduled Castes o1 Scheduled Castes Organisa- tions :

(vy) to borrow money subject to such conditions as the Board may specify ;

(vi) to receive gifis, grants and donations ; Gii) to tssue bonds and debentures ;

(viii) to draw, make, accept, endorse, discount, execute and issue promissory notes, bills of exchange, hundies, bills, warrants, debentures and other negotiable instruments;

(ix) to invest or deposit surplus funds of the Corporation in Govern- ment securities orin such other manner as the Board may decide ;

(x) to enter Into contracts ; and

(xi) 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.

Wig-A. or the purpose of carrying out its functions under this Act Capital of the Corporation may-— ,

the Corpo-

ration.

(@) be provided with capital by the State Government on such terms and conditions Consistent with the provisions of this Act as the State Government may specify ; and

(6) be provided with capital by the Central Government on such terms and conditions consistent with the provisions of this Act as that Government may specify.].

17. The Corporation shail establish and maintain four separate Funds Corporation to namely—- raaintain four

, funds,

(a2) Laud Development and Finance Fund ;

(6) Guarantee Fund ;

(d) Relief and Common Good Fund. Section 16Ainserted by Punjab Act No.16 of 1979, Section 7.

(2) All amounts thar are expended by the Corporation shall be debited to this Fund.

Guarantee Fund, 19. (J) 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 contr'bute to this Fund such portion of its net profits as may be decided by the Board. Bad Debts Fund, 20. To the Bad Debts Fund shall be credited every year—

(a) by the Corporation ten per centum of its net profits ; and

(b) by the State Government 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. Relief and a 21. To the Relief and Common Good Fund shall be credited every yeat Good Fund. such amount not exceeding Seven oe a a half oe ce 'otum of the net profits of we SAPTER Vo poss

= "LOANS -

Power to impose 22. In making any loan authorised by this Act, the Corporation may conditions for loans. impose such Conditions as it may think necessary or expedient for protecting, the interests of the Corporaticn

Provided that the rate of interest chargeable on such loans shall ia ne Case exceed the rate of interest Chargeable on the loans advanced under the Punjab State Aid to Industries Act, 1935.

Power to call 23. Notwithstanding anything to the contrary contained in any agree- pepngieet Bofors ment, the Corporation may, by notice in writing, require any debtor to dis- aeree: riod. = z . . : ey egege .

om 4 charge forthwith in full his liabilities to the Corporation—

(a) if it appears to the Board that any false or misleading informa- tion or particular was given in the application for loan ;

(b) if the debtor has failed to comply with any of the terms of the agree- ment entered into by him with the Corporation ;

(¢) if ror any other reason it is necessaty to do So to protect the interests of the Corporation.

24. (J) Where any amount is due to the Corporation from any person, Recovery of money including the surety of a debtor, in respect of loans or advances or other. due to the - financial accommodaticn graated by it, such amount shall, on a certificate ComPorton. being granted by the Executive Director in the prescribed fu'm, be recoverable as arrears of land revenue by the Collector of the districtin which the person from who the amount is due resides or carries on buSiness or owns any property.

(2) Before issuing the certificate referred to in sub-section (/) the Exe- cutive Director shall make an application to such officer, unconnected with the business of the Colporation, as may be empowered by the State Govern- ment in this behalf and that officer shell 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 Executive Director. ,

(3) An appeal against an order passed by the officer empowered by the State Government under sub-section (2) shall lic within such period and to such authority as may be prescribed.

(4) The officer empowered under sub-section (2) and the appellate autho- tity shail follow such procedure as may be prescribed.

(5) The certificate issued by the Executive Director under sub-section (/) shall be final and conclusive and shall not be call€d in question b.fore any authority or court.

(6) For the purpose of recovering any amount duc to the Corporation in respect of a loan it shall not be necessary to procecd against the principal before proceeding against his surety.

25. Notwithstanding anything Contained in any law for the time being First charge of in force, but subject to the provisions relating to priority of charges in any Corporation's | law male by Parliament and to any prior claim of the Government in respect loans on debtor's of dand revenue or any money recoverable by it as atrears of land revenue, P'OPS™Y- a loan advanced by the Corporation under this Act tog 'he: with interest 'Kt og accrued thereon and costs of its recovery, shal: be first charge on the property a of the debtor.

CHAPTER VI

ACCOUNTS AND AUDIT

26. (J) The balance-sheet and accounts including the profit and loss Accounts. account of the Corporation Shall be prepared and maintiined in such form and manner as may be prescr.bed.

(2) The Board shall cause the books and accounts of the Corporation to nes be balanced «nd closed on the thirty-first day Of March each year.

27. *[(1) The accounts of the Corporation shail be audited by the Account- Audit. ant-General, Punjab, or by such person as may be authorised by him in this behalf and the expenditure incurred by him in Connection with such audit and preparation of the audit report shall be payable by the Corporation to the Accountant-General, Punjab.

Substituted by Punjab Act No. 16 of 1979, Section 8,