Chapter VI MISCELLANEOUS

Conditions of service of employees.-

1. (1) Every employee shall be appointed under a written contract, which shall be kept in the Institute and a copy of which shall be furnished to the employee concerned.
2. (2) Disciplinary action against the employees shall be governed by the procedure specified in the Statutes.
3. (3) Any dispute arising out of the contract between the Institute and an employee shall, be resolved in the manner provided for in the written contract and in accordance with the Statutes and Regulations and any other conditions as may be prescribed by rules.

Right to appeal.- In case of disciplinary actions by the Institute against its employee or student, the aggrieved employee or students shall have a right to appeal to the Board of Management.

Provident fund.- The Institute shall constitute for the benefit of its employees such provident or pension fund and provide such insurance scheme as it may deem fit in such manner and subject to such conditions as may be specified by the Statutes and the laws in force.

Disputes as to constitution of Institute authorities and bodies.- If any question arises as to whether any person has been duly elected or appointed as, or is entitled to be a member of any authority or other body of the Institute, the matter shall be referred to the Chancellor whose decision thereon shall be final.

Constitution of Committees.- Any authority of the Institute mentioned in Chapter IV, shall be empowered to constitute a committee of such authority, consisting of such members of such authority and having such powers as the authority may deem fit.

Filling of casual vacancies.- Any casual vacancy among the members, other than ex-officio members of any Authority or body of the Institute shall be filled in the same manner in which the member whose vacancy is to be filled up, was chosen, and the person filling the vacancy shall be a member of such authority or body for the residue of the term for which the person in whose place he would have been a member.

Protection of action taken in good faith.- No suit or other legal proceedings shall lie against any officer or other employee of the Institute for anything, which is done in good faith or intended to be done in pursuance of the provisions of this Act or the Rules, Statutes and Regulations.

Transitional provisions.- Notwithstanding anything contained in any other provisions of this Act and the Statutes and Regulations,-

1. (i) the first Director shall be appointed by the Chancellor;
2. (ii) the first COO&R, , the first Deans and the first Finance Officer shall be appointed by the Director; and
3. (iii) the first Board of Management, the first Finance Committee, the first Distance Education Committee, the first Research Council and the first Academic Council shall be constituted by the Director with approval of the Chancellor of the Board of Governors .

Permanent Statutory Endowment Fund.-

1. (1) The Institute shall establish a Permanent Statutory Endowment Fund of at least rupees twenty-five crores which may be increased suo moto but shall not be decreased.
2. (2) The Institute shall have power to invest the permanent Statutory Endowment Fund in such manner as may be prescribed.
3. (3) The Institute may transfer any amount from the General Fund or the Development Fund to the permanent Statutory Endowment Fund. Excepting in the dissolution of the Institute, in no other circumstances can any moneys be transferred from permanent Statutory Endowment Fund for other purposes.
4. (4) Seventy five percent of the incomes received from permanent Statutory Endowment Fund shall be used for the purpose of development or general work of the Institute.

Institute Endowment Fund Institute Endowment Fund.-

1. (1) The Institute shall establish a Institute Endowment Fund having such funds as may be determined by the Sponsoring Body which can include donations and other funds received from time to time.
2. (2) The Institute shall have the power to invest the Institute Endowment Fund in a manner as may be specified by the Statutes and Regulations.
3. (3) The Institute Endowment Fund is a self-imposed fund that the Institute desires to maintain voluntarily and invest it responsibly to protect itself from financial challenges that may arise on account of pursuing social objectives and/or unforeseen circumstance.
4. (4) The Institute may transfer any amount from the General Fund or the development fund to the Institute Endowment Fund. Excepting in the dissolution of the Institute, in no other circumstances moneys can be transferred from the Institute Endowment Fund for other purposes.
5. (5) Eighty percent of the incomes received from the Institute Endowment Fund shall be used for the purposes of development or general work of the Institute.

General Fund General Fund.-

1. (1) The Institute shall establish a General Fund to which the following amount shall be credited, namely:-
   • (i) all fees which may be charged by the Institute;
   • (ii) all sums received from any other source not prohibited by any law for the time being in force;
   • (iii) all contributions made to the Institute;
   • (iv) all contributions/donations made in this behalf by any other person or body which are not prohibited by any law for the time being in force.
2. (2) The funds credited to the General Fund shall be applied to meet all the recurring expenditure of the Institute.

Development fund.- The Institute shall also establish a Development Fund to which the following funds shall be credited, namely:-

1. (i) development fees which may be charged from students not prohibited by any law for the time being inforce;
2. (ii) all sums received from any other source for the purposes of the development of the Institute;
3. (iii) all contributions made to the Institute;
4. (iv) all contributions/donations made in this behalf by any other person or body which are not prohibited by any law for the time being in force; and
5. (v) incomes received from the Permanent Statutory Endowment Fund.

1. (2) The funds credited to the Development Fund from time to time shall be utilized for the development of the Institute.

Maintenance of funds.- The funds established under sections 47, 48, 49 and 50 shall, subject to general supervision and control of the Board of Governors, be regulated and maintained in such manner as may be prescribed by rules.

Annual Report.-

1. (1) The annual report of the Institute shall be prepared under the direction of the Board of Management and shall be submitted to the Board of Governors for its approval.
2. (2) The Board of Governors shall consider the annual report in its meeting and may approve the same with or without modification.
3. (3) A copy of the annual report duly approved by the Board of Governors shall be sent to the Government before 31st December following close of the financial year in 31st March of each year.

Account and audit.-

1. (1) The annual accounts and balance sheet of the Institute shall be prepared under the direction of the Board of Management and all funds accruing to or received by the Institute from all source and all amount disbursed or paid shall be entered in the account maintained by the Institute.
2. (2) The annual accounts of the Institute shall be audited annually by an auditor, who is a member of the Institute of Charted Accountants of India.
3. (3) A copy of the annual accounts and the balance sheet together with the audit report shall be submitted to the Board of Governors before 30th November following close of the financial year in 31st March of each year.
4. (4) The annual accounts, the balance sheet and the audit report shall be considered by the Board of Governors at its meeting and the Board of Governors shall forward the same to the Government along with its observations thereon before the 31st December of each year.
5. (5) In the event of any material alteration in the Report of the Auditors, the Government may issue directions to the Institute, and such directions shall be binding on the Institute.

Mode of proof of Institute record.- A copy of any receipt, application, notice, order, proceeding or resolution of any authority or committee of the Institute or other documents in possession of the Institute or any entry in any register duly maintained by the Institute, if certified by the COO&R, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transaction therein recorded where the original thereof would, if produced, have been admissible in evidence.

Power of State Government to issue directions.- The State Government may give such directions to the Institute as in its opinion are necessary or expedient for carrying out the purposes of this Act or to give effect to any of the provisions contained therein or of any rules or orders made thereunder and the Board of Governor or the Board of management, as the case may be, of the Institute shall comply with every such direction.

Penalties.-

1. (1) Whoever contravenes the provisions of this Act or the rules made thereunder or any examination matters or in matters relating to award of degrees or in giving marks cards shall on conviction be punishable with fine of rupees fifty thousand which may extend to ten lakh rupees or with an imprisonment for a term of six months which may extend to two years or with both. Provided that, where the University is also involved the permission letter granted under this Act to commence the University shall be withdrawn.
2. (1) A penalty under this section may be imposed without prejudice to the penalty specified in any other Act.

Power to enter and inspect.- Any officer not below the rank of Group 'A officer authorized by the State Government in this behalf, shall, subject to such conditions as may be specified therein under the Karnataka Educational Institutions (Prohibition of Capitation Fee) Act, 1984 (Karnataka Act 37 of 1984) shall be deemed to be the Officer authorized to exercise the same powers and discharge the same functions as provided under section 9 of that Act for the purposes of this Act.

Power to give direction for dissolution of the Institute.-

1. (1) If the Institute proposes dissolution in accordance with the law governing its constitution or incorporation, it shall give at least six months prior notice in writing to the Government.
2. (2) The Karnataka State Higher Education Council shall conduct periodical Inspection of University regarding,-
   • (i) standard of instructions for grant of degree;
   • (ii) quality of education;
   • (iii) avoidance of commercialization of Higher Education;
   • (iv) contravention of the provisions of the Act if any; -and send report to the Government.
3. (3) On identification of mismanagement, maladministration and indiscipline, the Government shall issue directions to the management of the Institute to set right the administration . If the direction is not followed within such time as may be prescribed, the right to take decision for winding up of the Institute or any course thereof shall vest with the Government.
4. (4) The manner of winding up of the Institute or any course thereof shall be such as may be prescribed by the Government in this behalf: Provided that no such action shall be initiated without affording a reasonable opportunity to show cause to the Institute.
5. (5) On receipt of the notice referred to in sub-section (1), the Government shall, in consultation with the relevant Regulatory Authority make such arrangements for administration of the Institute from the proposed date of dissolution of the Institute or winding up of the course and until the last batch of students in regular courses of studies of the Institute complete their courses of studies in such manner as may be specified by the Statues.

Expenditure of the Institute during dissolution.-

1. (1) The expenditure of administration of the Institute during the taking over period of its management under sub-section
2. (2) of section 50 shall be met out of the Permanent Statutory Endowment Fund, the General Fund or the Development Fund in such manner as may be prescribed.
3. (2) If the fund referred to in sections 47, 48, 49 and 50 are not sufficient to meet the expenditure of the Institute during the taking over period of its management, such expenditure may be met by disposing of the properties or asset of the Institute, by the Government.

Removal of difficulties.- If any difficulty arises in giving effect to the provisions of this Act, the Government may, by a notification or by order, make such provisions, which are not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient, for removing the difficulty:

Power to make rules by the State Government Power to make rules by the State Government.-

1. (1) The State Government may make rules, by notification, to carryout the purposes of this Act.
2. (2) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.