Chapter VI Chapter VI

Miscellaneous

Members of Board and Officers and Servants of Board to be public servants.— Members of the Board and officers and servants of the Board shall be deemed when acting or purporting to act in pursuance of any of the provisions of this Act to be Public Servants within the meaning of section 21 of the Indian Penal Code.

Protection of action taken under this Act.— No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or purported to be done by or under this Act.

Power to make rules.—

1. (1) Government may, by notification make rules to give effect to the provisions of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
   • (a) the place at which the office of the Board shall be located;
   • (b) the term of office of, and the manner of filling casual vacancies among the members of the Board and the terms and conditions of service of the Chairman, Vice- -Chairman, the Secretary and the other members of the Board, including the salaries and allowances to be paid to them and travelling and daily allowances to be drawn by them;
   • (c) the disqualifications of membership of the Board and the procedure to be followed for removing a member who is or becomes subject to any disqualifications;
   • (d) powers and duties to be exercised and performed by the Chairman and the Vice- -Chairman;
   • (e) the conditions subject to which, and the mode in which, contracts may be entered into by or on behalf of Board;
   • (f) constitution of the Standing Finance Committee;
   • (g) the procedure to be followed in the performance of functions by members of the Board;
   • (h) the powers and duties to be exercised and discharged by the Secretary, the Financial Adviser and the Executive Officer of the Board;
     • (i) the date by which and the form in which the budget and the supplementary budget shall be prepared and submitted in each year under sections 27 and 28;
   • (j) the procedure to be followed for placing the Board in possession of funds;
   • (k) the procedure to be followed and the conditions to be observed in borrowing and in granting loans;
3. (1) the form and manner in which the accounts of the Board shall be maintained under section 31;
   • (m) the form and manner in which the returns, reports or statements shall be submitted under section 30, and
   • (n) any other matter which has to be, or may be, prescribed.
4. (3) All rules made and all notifications issued under this Act shall, as soon as possible after they are made or issued, be placed on the table of the House of the Legislature and shall be subject to such modification by way of amendment or repeal as the Legislature may make either in the same session or in the next session.

Power to make regulations.—

1. (1) The Board may, with the previous sanction of Government, by notification, make regulations not inconsistent with this Act and the Rules made thereunder, for enabling it to perform its functions under this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:
   • (a) the terms and conditions of appointment and service and the scales of pay of officers and servants of the Board other than the Secretary including the payment of travelling and daily allowances in respect of journeys undertaken by such officers and servants for the purposes of this Act;
   • (b) the time and place of meetings of the Board, the procedure to be followed in regard to transaction of business at such meetings and the quorum necessary for the transaction of such business at a meeting;
   • (c) functions of committees and the procedure to be followed by such committees in the discharge of their functions;
   • (d) the delegation of powers and duties to the standing finance committee, secretary or any employee of the Board;
   • (e) the maintenance of minutes of meetings of the Board and the transmission of copies thereof to Government and the Khadi and Village Industries Commission;
   • (f) the persons by whom and the manner in which payments, deposits and investments may be made on behalf of the Board;
   • (g) the custody of moneys required for the current expenditure of the Board and investment of moneys not so required;
   • (h) the maintenance of accounts.
3. (3) Government may, by notification, modify or rescind any regulation made under that section, and thereupon, the regulation shall stand modified accordingly, or cease to have effect.

Dissolution of the Board.—

1. (1) If at any time Government in consultation with the Khadi and Village Industries Commission are satisfied that:
   • (a) the Board has, without reasonable cause or excuse, made default in the discharge of its duties, or in the performance of its functions, imposed or entrusted by or under this Act, or exceeded or abused its powers; or
   • (b) circumstances have so arisen that the Board is rendered unable, or may be rendered unable, to discharge its duties or perform its functions under this Act, or
   • (c) it is otherwise expedient or necessary to dissolve the Board; Government may, by notification, dissolve the Board for such period as may be specified in the notification and declare that the duties, powers and functions of the Board shall, during the period of its dissolution, be discharged, exercised and performed, by such person or authority, as may be specified in the notification: Provided that Government shall, before dissolving the Board, give a reasonable opportunity to it to show cause against the proposed action.
2. (2) Government shall, before the expiration of the period of dissolution, reconstitute the Board in accordance with the provisions of section 3 and 4.
3. (3) Government may make such incidental and consequential provisions as may appear to them to be necessary for giving effect to the provisions of this section.
4. (4) Any notification issued or order made by Government under this section shall not be questioned in any Civil Court.
5. (5) On the Board being dissolved under sub-section (1):
   • (i) all funds and other properties vested in the Board shall vest in Government; and
   • (ii) all liabilities, legally subsisting and enforceable against the Board shall be enforceable against Government to the extent of the funds and properties vested in

Recovery of arrears Recovery of arrears.— If any amount due to the Board in accordance with the terms of a contract or otherwise or any sum payable in connection therewith, has not been paid, the Board may, without prejudice to any other remedy provided by law, recover such amount or sum as arrears of land revenue.

Power to write off losses.— The Board shall be competent to write off losses up to Rs. 500/- in individual cases and not exceeding Rs. 5,000/- in the aggregate in any financial year in cases falling under any or all of the following categories:

1. (a) loss of irrecoverable value of stores or of public money due to theft, fraud or such other causes;
2. (b) loss of irrecoverable advance other than loans; and
3. (c) deficiency and depreciation in the value of stores.