Chapter II ESTABLISHMENT AND INCORPORATION OF THE BOARD

1. (1) THE State Government may, by notification in the official Gazette, establish a Board to be called the Patiala and East Punjab States Union Townships Development Board, for the purposes of constructing and developing townships at such places in the State as it deems fit, settling therein displaced persons, exercising such other powers and discharging such other functions as are conferred on, or may be assigned to, the Board by or under this Act.
2. (2) The Board shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act and the rules made thereunder, to acquire, own or transfer property, both movable and immovable, and may by the said name sue and be sued.

1. (1) The Board shall consist of the Chairman and six other members to be appointed by the State Government, of whom, at least, two shall be displaced persons settled in a Township.
2. (2) The names of members appointed under sub-section (1) shall be published in the official Gazette and every such appointment shall take effect from the date on which it is so published.

1. (1) The terms of office of the Chairman and other members shall be such as may be prescribed.
2. (2) The Chairman or any other member may resign his office by writing under his hand addressed to the State Government but his resignation shall take effect from the date on which it is accepted and notified in official Gazette.
3. (3) A member shall hold office during the pleasure of the State Government.
4. (4) A casual vacancy caused by resignation, death or removal of a member or for any other reason shall be filled by fresh appointment in accordance with the provisions of Section 4.

1. (1) The Board may, from time to time, with a view to give effect to the purposes of this Act appoint one or more committees consisting of such persons as it thinks fit.
2. (2) The Board may: -
   • (a) refer to such committee for inquiry and report any matter relating to any of the purposes of this Act.
   • (b) delegate to such Committee, by a specific resolution and subject to any rules made in this behalf, any of the powers or duties of the Board relating to the subject matter for which such Committee has been appointed.
   • (c) The Board may, at any time, for reasons to be recorded, dissolve or alter the constitution of any such Committee.
   • (d) Every Committee shall carry out any instruction given to it by the Board, and every final decision of such Committee shall, subject to any rule to the contrary, be laid before the Board for confirmation.

No act or proceedings of the Board or of any of its Committees shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.

1. (1) No person who directly or indirectly, by himself or by any partner, has any share or interest, in any contract with, by or on behalf of the Board, or in any business, industry or concern, connected with the construction and development of a township under this Act except as a share-holder (other than a director or managing agent) in an incorporated company, or holds any office of profit under the Board, shall become or continue to be a member of the Board. Provided that no such member shall be deemed to have any share or interest in any such contract by reason only of his being: -
   • (a) A share-holder in, or a member of, any incorporated or registered company with which any such contract has been entered into by the Board; or
   • (b) A person to whom the Board has sold, leased, let out on hire or allotted any property.
2. (2) Subject to the provisions of sub-section (3) of section 5, the State Government may, by notification in the official Gazette, remove from office any Member of the Board who, in its opinion, is or becomes, subject to any of the disqualifications herein before mentioned.

1. (1) The Board shall meet at such times and places, and shall, subject to the provisions of this section observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed. Provided that the Chairman may, whenever he thinks fit, and shall, upon the written request of not less than two members, call a special meeting.
2. (2) The quorum necessary for the transaction of business at a meeting of the Board shall be three members. Provided that where the business to be transacted at any such meeting involves the preparation of any scheme under Chapter-III, the quorum shall be four.
3. (3) The chairman or in his absence, any member chosen by the members present from among themselves shall preside at a meeting of the Board.
4. (4) All questions at any meeting of the Board shall be decided by a majority of the votes of the members present and voting, and in the case of an equality of votes, the Chairman or in his absence the person presiding, shall have and exercise a second or casting vote.
5. (5) Minutes of the proceedings of each meeting (together with the names of the members present) shall be recorded in a book to be provided for the purpose, and shall be signed by the person presiding at the next ensuing meeting, and the minutes shall be circulated to each member and shall, at all reasonable times, be open to inspection by any member during office hours free of charge.

The Board may associate with itself, in such manner and for such purposes as may be prescribed, any person whose assistance or advice it may desire in carrying out any of the provisions of this act or rules made thereunder; and such person shall have a right to take part in the discussions of the Board, relevant to the purpose, but shall not have a right to vote.

Subject to the provisions of this Act and any rules made thereunder the Board, may appoint such officers and servants as it considers necessary for the efficient performance of its functions on such terms and conditions of service as it may consider proper.

1. (1) There shall be an Administrator of the Board who shall be appointed by the State Government on such terms and conditions as may be prescribed.
2. (2) The Administrator shall be the ex-officio secretary to the Board and shall have the right to speak at, and otherwise take part in, any meeting, but shall not have the right to vote.
3. (3) The Administrator shall be the principal executive officer of the Board and all other officers and servants of the Board shall be subordinate to him.