Chapter I Chapter I

(1) The Act may be called The Madhya Pradesh Rajya Beej Evam Farm Vikas Nigam Adhiniyam 1980. (2) It extends to the whole of the State of Madhya Pradesh.

In this Act, unless the context otherwise requires,- (a) "Bank" means a banking company as defined in the Banking Regulation Act, 1949 (No. 10 of 1949) and includes:- (i) the State Bank of India constituted under the State Bank of India Act, 1955 (No. 23 of 1955); (ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (No. 38 of 1959); (iii) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (No. 5 of 1970); (iv) the Agricultural Refinance and Development Corporation constituted under the Agricultural Refinance and Development Corporation Act, 1963 (No. 10 of 1963); (v) the Agricultural Finance Corporation Limited, a company incorporated under the Companies Act, 1956 (No. 1 of 1956); (vi) a financing bank as defined in the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961); and (vii) any other banking institution that may be notified by the State Government to be a bank for the purpose of this Act. (b) "Beej or Seed" means seeds of food grains, fiber crops, plantation crops, oil seeds, commercial crops, vegetables, fruits and fodder and includes seedlings, tubers, bulbs, rhizomes, roots or stem cuttings (rooted or unrooted) grafts and all other vegetatively propagated plant materials; (c) "Board" means the Board of Directors of the Nigam constituted under Section 8; (d) "Financing Institution" means any statutory corporation or other body corporate established in India which has one of its objects the financing of agriculture in India and which is notified by the State Government to be a financing institution for the purposes of this Act; (e) "Land" shall have the same meaning as assigned to that expression under the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959); (f) "Nigam" means the Madhya Pradesh Rajya Beej Evam Farm Vikas Nigam established under this Act; (g) "Farm" means an area of land belonging to the Nigam or not which is used or proposed to be used for agricultural farm for the production of seeds; (h) "Project" means any project or scheme for seeds and farm development approved under Sectior 25; (i) "Regulation" means regulations made by the Nigam under Section 41; (j) "Works" includes any works relating to organisation, production, conservation, development or exploitation of seeds and agricultural farms to be executed under a project under this Act; (k) "Year" means the financial year.

(1) With effect from such date as the State Government may, by notification appoint, there shall be established for the purposes of this Act a Nigam to be known as the Madhya Pradesh Rajya Beej Evam Farm Vikas Nigam. (2) The Nigam shall be a body corporate with the name aforesaid, having perpetual succession and common seal with power, subject to provisions of this Act to acquire, hold and dispose of any property and to contract, and may, by that name sue and be sued.

The head office of the Nigam shall be at Bhopal and it may, with the previous approval of the State Government, establish offices or agencies at other places.

(1) The authorised capital of the Nigam shall be ten crores of rupees divided in ten thousand shares of rupees ten thousand each. With the previous sanction of the State Government, the first issue of share shall be made by the Nigam. (2) The State Government may enter into an agreement with the Central Government or any of its related agencies for subscribing to the share capital of the Nigam and subject to such agreement the State Government and the Central Government or any of its related agencies shall subscribe in such proportion as may be mutually determined to the share capital to be issued in the first instance. The Nigam may unless otherwise agreed, issue at any time or from time to time, fully paid shares to the State Government of the value of any plants and machinery or fixed assets which may be acquired by it from the State Government. (3) Subsequent issues of share capital may be subscribed by the State Government and the Central Government or any of its related agencies as may be mutually agreed upon between both the Governments and the related agencies aforesaid. (4) The State Government may, from time to time, increase the authorised capital of the Nigam to such extent as the State Government may deem necessary.

The shares of the Nigam shall not be transferable except as between the State Government and the Central Government or the related agencies concerned and in accordance with the regulations made in this behalf.

(1) The general superintendence, direction and management of the affairs and business of the Nigam shall vest in the Board of Directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Nigam under this Act. (2) The Board of Directors, in discharging its functions shall act on business principles, regard being had to public interest and shall be guided by such directions on questions of policy as may, from time to time, be given to it by the State Government.

(1) The Board of Directors of the Nigam shall consist of the Chairman to be nominated by the State Government and the following other Directors:- A-Ex-officio Directors (i) [x x x]. (ii) the Secretary to Government, Madhya Pradesh, Agriculture Department, who shall be Vice-Chairman; (iii) the Secretary to Government, Madhya Pradesh, Finance Department or his nominee not below the rank of Deputy Secretary; (iv) Director of Agriculture, Madhya Pradesh; (v) Director Research, Jawaharlal Nehru Krishi Vishwavidyalaya, Jabalpur; (vi) the Registrar of Co-operative Societies, Madhya Pradesh: (vii) the Managing Director appointed under Section 11 B-Nominated Directors (viii) one Director to be nominated by the State Government to represent banks and financing institutions; (ix) one Director having special knowledge or practical experience in respect of agriculture and allied subjects to be nominated by the State Government; (x) two Directors having practical experience in respect of organisation, management of Farms and production and marketing of seeds to be nominated by the State Government. (2) The Chairman or a nominated Director shall hold office during the pleasure of the authority nominating him but the term of his office shall not exceed three years from the date of notification of his nomination. The Chairman or a nominated Director may, however, resign his office at any time, by writing a letter under his hand to the State Government and the Chairman of the Board and the resignation shall be effective from the date of its receipt. (3) In the event of the death, resignation or disqualification of the Chairman or a nominated Director, the vacancy shall be filled up by nomination as soon as possible.

(1) A person shall be disqualified for being nominated or appointed as, and for being a Director of the Nigam,- (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; or (b) if he is of unsound mind and stands so declared by a competent Court; or (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 is removed or dismissed from the service of the Government or a Corporation owned or controlled by the Central Government or the State Government; or (e) if he acts in any manner prejudicial to the interest of the Nigam or has any interest in any body, institution or organisation whose activities are prejudicial to the interest of the Nigam. (2) If a Director of the Nigam becomes subject to any of the disqualifications mentioned in sub-section (1) he shall cease to be a Director of the Nigam with effect from the date of notification to this effect by the State Government. Explanation. - For the purpose of this Section "Director" shall include Chairman.

(1) If a nominated director,- (a) becomes subject to any of the disqualifications mentioned in Section 9; or (b) is absent without leave of the Board from more than three consecutive meetings thereof without cause sufficient in the opinion of the State Government to exonerate his absence; the State Government may declare that the said Director shall be deemed to have vacated his office from the date of notification to this effect and thereupon his seat shall become vacant. (2) A Director whose office has been declared vacant under sub-section (1) shall not be eligible for renomination to the Board as a Director or for employment in the Nigam in any capacity.

(1) The Managing Director shall be appointed by the State Government and shall - (i) be a whole time officer of the Nigam; (ii) exercise such powers and perform such duties as the Board may delegate or entrust to him; (iii) receive such salary and allowances and be governed by such terms and conditions of service as the Nigam may, with the approval of the State Government, determine : Provided that the first Managing Director shall receive such salary and allowance and shall be governed by such terms and conditions of service as the State Government may determine. (2) The State Government may at any time remove the Managing Director from office without assigning any reason therefor.

Directors, save as otherwise provided in Section 11 shall be paid such fees and allowances as may be provided by regulations for attending the meetings of the Board or of any of its committees and for attending to any other work of Nigam : Provided that no fee shall be payable under this Section to the Chairman, Managing Director or any other Director who is a Minister or an Officer of the State Government or of the Central Government.

(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to transaction of the business at its meetings as may be provided by regulation : Provided that the Board shall meet at least once in every three months. (2) The Chairman of the Board or, in his absence the Vice-Chairman, or in the absence of both the Chairman and the Vice-Chairman, any other Director chosen by the directors present at the meeting shall preside at a meeting. (3) All matters which come up before any meeting of the Board shall be decided by a majority of the votes of the Directors present and voting and, in the event of equality of votes, the person presiding shall have a second or casting vote. (4) In case the Board deems necessary to seek the advice or opinion of any person on any particular matter, the Board may invite such person to attend any meeting of the Board, such an invitee shall have a right to participate in any discussion but shall have no right to vote at the meeting.

(1) The Board may constitute one or more executive committees consisting of such number of Directors as may be provided by the regulations for discharging such functions as may be delegated to it by the Board. (2) The Board may constitute such other committees whether consisting wholly of Directors or wholly of other persons, as thinks fit, for such purposes, related to the activities of the Nigam, as it may decide. (3) The members of a Committee other than the Directors of the Nigam, shall be paid by the Nigam such fees and/or allowances for attending its meeting and for attending to any other work of the Nigam as may be provided by regulations.

A Director of the Nigam or a members of a Committee 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 disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Board or of the Committees, as the case may be, and the director or member shall not take any part in any deliberation or decision of the Board or the Committee with respect to that matter except to furnish such clarification as may be required of him.

(1) The Nigam may appoint such officers and other employees as it considers necessary for the efficient performance of its functions. (2) Every person employed by the Nigam under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations. (3) The Managing Director acting on behalf of the Board shall be deemed to be the appointing authority and shall exercise all powers of such an authority in respect of all officers and other employees employed by the Nigam. (4) An appeal shall lie to the state Government or such authority as the State Government may specify in this behalf against the order o Managing Director in such manner as may be provided by regulations.