Chapter VIL Chapter VIL

(1) The Nigam shall, in respect of every year submit to the State Government, a statement of programme of its activities together with annual financial statement showing therein in detail the estimated receipt and expenditure of the Nigam for the year. (2) The Nigam may, with the prior approval of the State Government revise or modify the statement and astimate referred to in sub-section (1). (3) The Nigam shall submit each year to the State Government the programme of work and details of the project for different activities which are to be executed during the next year. (4) The State Government may, either approve the projects or may approve it with such modifications as it may consider necessary or may return it to the Nigam to modify the same or to prepare a fresh project in accordance with such directions as the State Government may deem appropriate.

(1) The Nigam shall have and maintain its own funds, and all receipts of the Nigam shall be carried thereto and all payments by the Nigam shall be made therefrom. (2) The funds of the Nigam shall be applied by it for meeting all administrative expenses of the Nigam and for carrying out the purposes of this Act. (3) The Nigam may deposit with any bank such sums as may be needed by it for its operations and the surplus may be invested in such manner as may be approved by the State Government.

(1) The Nigam shall establish a reserve fund to which shall be credited every year such portion of its annual net profits as the Nigam thinks fit. (2) After making provisions for such reserve fund and for bad and doubtful debts and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (Central Act I of 1956) the balance of its annual net profits shall be paid to the State Government.

(1) The Nigam shall cause to be maintained proper books of accounts and such other books as the rules may require and shall prepare an annual statement of account in the prescribed manner. The books of accounts of the Nigam shall be balanced and closed as on the 31st day of March each year. The annual statement of accounts shall be submitted to the Board of Directors within six months of the close of the financial year, failing which the Managing Director shall explain the delay and apply to the State Government for permitting the submission in another three months at the most. (2) The Nigam shall cause its accounts to be audited annually by such person as the State Government may direct. (3) As soon as the accounts of the Nigam have been audited, the Nigam shall send a copy thereof together with a copy of the report of the auditor thereon to the State Government and shall cause the accounts to be published in the prescribed manner and place copies thereof on sale at reasonable price. (4) The Nigam shall comply with such directions as the State Government may after perusal of the report of the auditor think fit to issue.

The Nigam shall create a depreciation reserve and, shall at the end of every year, credit to such reserve from its revenue an amount calculated in accordance with the straight line method of depreciation, that is to say, such an amount as is arrived at by dividing ninety per cent of the original cost of the asserts, after taking into account the sums already written off and set aside in the books of the Nigam by the prescribed period in respect of such assets : Provided that the contribution in respect of any asset to the depreciation reserve under this Section shall cease at the end of the prescribed period or when the asset cease to be used by the Nigam whichever is earlier: Provided further that if in any year it is not practicable fully to comply with the provisions of this Section, the amount by which the sums actually credited falls short of the amount required under this Section in respect of that year shall be carried forward and together with simple interest thereon at the Reserve Bank rate ruling at the beginning of that year, shall be credited to the said reserve as soon as it is found possible so to do: Provided also that the accumulations in the depreciation reserve may be invested in the business of the Nigam or utilized for repayment of the principal of any loan raised under sub-section (1) of Section 20 or for repayment of sums paid by the State Government under sub-section (2) of the said Section.

(1) The Nigam shall furnish to the State Government from time to time, such returns as the State Government may require. (2) The Nigam shall, in respect of each year, furnish to the State Government, within a period of three months from the date on which the annual accounts of the Nigam are closed, a copy of the balance sheet as on the close of that year together with a profit and loss account for the year and a report on the working of the Nigam including its policy and programme during the year. (3) The State Government shall, as soon as may be after the receipt of such report cause such report and the annual report received under Section 28 to be laid on the table of Legislative Assembly.

(1) In the discharge of its functions under this Act, the Nigam shall be guided by such directions in matters of policy involving public interest as the State Government may give to it in writing and if any question arises whether the direction relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final. (2) Where the Nigam incurs any loss directly in consequence of carrying out the directions of the State Government under sub-section (1) the same shall be made good by the State Government.

(1) On and after the establishment of the Nigam, the State Government may from time to time, direct that the services of such of the existing officers and servants of the State Government in Agriculture Department who in its opinion, are rendered surplus to its requirements, shall stand terminated and their posts shall stand abolished, from such date as may be specified by it (hereinafter in this Section referred to as the appointed date), and shall on that date (which may be different for different officers and servants) become the officers or servants of the Nigam. (2) Every permanent or temporary employee of the State Government in respect whom a direction is issued under sub-section (1) shall, on and from the appointed date, be a permanent or temporary employee of the Nigam, as the case may be, against a permanent or temporary post, which shall stand created in the establishment of the Nigam with effect from the appointed date. (3) Any officer or servant so transferred shall hold office under the Nigam by the same tenure, at the same remuneration and upon the same other conditions of service and with the same rights and privileges as to pension, gratuity, provident fund and other matters as would have been admissible to him on the appointed date if this Act had not come into force. Any service rendered by him under the State Government shall be deemed to be service rendered under the Nigam. He shall continue to serve under the Nigam until his employment under the Nigam is duly terminated or his remuneration or the conditions of service are duly revised or altered by the Nigam in pursuance of the law which for the time being governs his conditions of service: Provided that the conditions of service applicable immediately before the appointed date to the case of any such officer or servant shall not be varied to his disadvantage, except with the previous approval of the State Government. (4) The sums standing to the credit of the employees referred to in sub-section (1) in any pension, provident fund, gratuity or other like funds constituted for them shall be transferred by the State Government to the Nigam alongwith any accumulated interest due till the appointed date and with the accounts relating to such funds. On and after the appointed date, the Nigam shall, to the exclusion of the State Government, be liable for payment of pension, provident fund, gratuity or other like sums as may be payable to such employees at the appropriate time in accordance with the conditions of their service. (5) Nothing contained in sub-section (1) shall apply to any employee who by notice in writing given to the State Government within two months from the appointed date or such extended time as the State Government may, by general or special order, specify, intimate his intention of not becoming or continuing as an employee of the Nigam. Where such notice is received from any employee- (a) in case of a permanent employee, he shall be allowed to retire giving him the benefit of pension, gratuity, provident fund and other benefits accrued to him had he retired from the Government service on the appointed date; (b) in case of a temporary employee, his service shall be terminated after giving him notice or remuneration in lieu of notice as per the existing service rules of the State Government. (6) Notwithstanding anything contained in the foregoing sub-sections- (a) no person employed in the Agriculture Department against whom any disciplinary proceeding is pending or to whom any notice or order of termination of his service or compulsory retirement has been issued before the date of commencement of this Act shall be transferred to the Nigam, and such person may be dealt with after the said date in such manner and by such authority as the State Government may, by general or special order, specify in this behalf; (b) if the services of any employee of the State Government stand transferred under sub-section (1) to the Nigam, the Nigam shall be competent after such transfer to take such disciplinary or other action as it thinks fit against or in respect of such employee having regard to any act or omission or conduct or record of such employee while he was in service of the State Government.

The Nigam shall not be placed in liquidation save by an order of the State Government and in such manner as it may direct.

(1) Every Director of the Nigam shall be indemnified by the Nigam against all losses and expenses incurred by him, in or in relation to discharge of his duties except such as are caused by his own wilful act or default. (2) A Director of the Nigam shall not be responsible for any other Director or for any officer or other employee of the Nigam for any loss or expenses resulting to the Nigam from the insufficiency or deficiency of value of, or title to any property or security acquired or taken on behalf of the Nigam or the insolvency or wrongful act of any debtor or any person under obligation to the Nigam or anything done in good faith in the execution of the duties of his office in relation thereto.

(1) No act or proceeding of the Board or of any committee of the Board shall be invalid merely by reason of- (a) any vacancy in or defect in the composition of the Board or Committee, as the case may be; or (b) any defect in the nomination of any person action as a Chairman or a Director of the Nigam or member of the Committee; or (c) any defect or irregularity in the procedure of the Board or Committee, as the case may be. (2) No act done by any person acting in good faith as a Chairman or a Director of the Nigam or as a member of a Committee of the Board shall be deemed to be invalid merely on the ground that he was disqualified to be a Chairman or a Director or a member or that there is any defect in his appointment.

No suit or other legal proceeding shall lie against the Nigam or any other person authorised by the Nigam to discharge any functions under this Act for any loss or damage caused or likely to caused by anything which is in good faith done or intended to be done in the pursuance of this Act.

The Chairman, every Director, member of the Board or Committee, auditor, Officer or other employee of the Nigam or an employee of the State Government whose services are utilised by the Nigam, shall before entering upon his duties, make a declaration of fidelity and secrecy in the form prescribed by regulations.

The Board may delegate to any committee of the Board or to the Chairman or Managing Director or any other officer of the Nigam such of its powers and functions under this Act as it may deem necessary.

All moneys recoverable by the Nigam under this Act or under any agreement which provides for recovery of any amount payable thereunder as arrears of land revenue shall on a certificate signed by the Managing Director or any person authorised by him in this behalf be recoverable as arrears of land revenue.

(1) The State Government may make rules not inconsistent with the provisions of this Act to give effect to the provisions of this Act. (2) All rules made under this Section shall be laid on the table of the Legislative Assembly.

(1) The Nigam may, with the previous approval of the State Government make regulations not inconsistent with this Act and the rules made thereunder, providing for all matters for which no rules have been framed under this Act and for which provision is necessary and expedient for the purpose of giving effect to the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for the following matters, namely:- (a) the manner in which and the conditions subject to which the shares of the Nigam shall be transferable; (b) the fees and allowances that may be paid to the directors; (c) the times and places of the meetings of the Board or of any committee constituted under this Act and the procedure to be followed at such meetings including the quorum necessary for transaction of business; (d) the number of directors constituting the executive committee and the functions which such committee shall discharge; (e) the functions which any other committee may discharge under this Act; (f) the fees and allowances that may be paid to the member of a committee other than directors; (g) the manner in which appeal lie to the State Government or the specified authority; (h) delegation of powers and functions of the Board to the committees or to the Chairman, the Managing Director and other officers of the Nigam; (i) the manner and terms of issue and redemption of bonds and debentures and other securities by the Nigam; (j) the manner and conditions subject to which the Nigam may borrow moneys; (k) the form and manner in which the balance sheet and accounts of the Nigam shall be prepared and maintained; (l) the form of returns, statements and estimates required to be prepared under this Act; (m) duties and conduct, salaries, allowances and conditions of service of the employees of the Nigam; (n) establishment and management of provident fund or other benefit funds for employees of the Nigam; and (o) generally for the efficient conduct of the affairs of the Nigam.