Chapter II Chapter II

Establishment and Incorporation of board

1. (1) The State Government may, by notification, establish for the

purposes of carrying out the provision of this Act a Board to be

called “the Punjab Water Supply and Sewerage Board” and such Board shall be a body corporate having perpetual succession and a common seal with power to acquire, hold or dispose of property, both movable and immovable and shall, by the said name, sue and be sued, Es tablishm ent incorporation and headquarters of Board

1. (2) The Board shall have its headquarters at Patiala or at such

other place as may be notified by the Government from time to

time.

In the principal Act, in section 5,-

1. (i) in the heading, the signs and words " , Managing Director, " shall be omitted; and
2. (ii) in sub-section (1), the signs and words " , the Managing

Term of office and conditions of service of Chairman, Managing Director and Associate Director

1. (1) The term of office of, and the terms and conditions of service of, the Chairman, the (“Managing Director”),(** ** **) and the (Associate directors) shall be such as may be prescribed.

s ervice of Chairm an, Managing Director(***) and As s ociate Director

1. (2) Any (director) appointed by the Government may at any time resign his office, but such resignation shall not take effect till accepted by the Government.
2. (3) An (Associate director) may at any time resign his office, but such resignation shall not take effect till accepted by the Board

1. (1) A person shall be disqualified for being appointed as a “(Director or co-opted as an” (Associate Director) of the Board, if he Director
   • (a) has been convicted by a criminal court at any time after the 26 th January,1950, for an offence, involving moral turpitude, unless such conviction has been set aside;
   • (b) is an undischarged insolvent;
   • (c) is of unsound mind;
   • (d) is an officer or employee of the Board;
   • (e) has directly or indirectly, by himself or by any partner, employer or employee, any share or interest in any contract or employment with, by or on behalf of, the Board;
   • (f) is a Director or a Secretary, Manager or other officer of any incorporated company which has any share or interest in any contract or employment with, by or on behalf of, the Board.
2. (2) If any question, dispute or doubt arises as to whether or not any person is eligible for (directorship) of the board or has incurred any disqualifications, whether before or after becoming a (director),it shall be determined by the Government whose decision shall be final.
3. (3) A person shall not be disqualified under clause
   • (e) or clause (f) of sub section
     • (I) or be deemed to have any share or interest in any contract or employment within the meaning of these

clauses, by reason only of his or the incorporated company of

which he is a Director, Secretary, Manager or other officer, having a share or interest in-

1. (i) any sale, purchase, lease or exchange of immovable property or any agreement for the same;
2. (ii) any agreement for the loan of money or any security for the payment of money only;
3. (iii) any newspaper in which any advertisement

relating to the affairs of the Board is inserted;

1. (iv) the occasional sale to the Board, if the sum paid as consideration does not exceed two thousand rupees in any one year, of any articles in which he or the incorporated company regularly trades,

Circumstances under which a director shall vacate his office If a (director) appointed by the Government or any “(Associate Director)- Circum s tances under which a (director) shall vacate his office

1. (a) ceases to have qualifications or ceases to hold office by virtue of which he became a (director)
2. (b) becomes subject to any disqualification referred to in section 6; or
3. (c) absents himself, without permission of the Chairman, from three consecutive meetings of the Board; the Government, in the case of a (director) and the Board in the case of an (Associate Director), may, after giving him a reasonable opportunity of showing cause, declare his office to be vacant.

In the principal Act, in section 19, in sub-section (1), for clause (ii), the following clause shall be substituted, namely:- "(ii) to incur expenditure and undertake any work in any area of a local authority, whose water supply and/or sewerage works are assigned to it, for the preparation and execution of such schemes as it may consider necessary for the purpose of carrying out the provisions of this Act, or as the case may be, the functions entrusted to it by the Government.".

In the principal Act, for section 26, the following section shall be substituted, namely:- "26.

1. (1) All the officers and employees engaged in connection with the water supply or/and sewerage services of a local

authority, whose such work is assigned to the Board,

shall stand transferred on deputation to the Board from the date of the order of the Government assigning such work: Provided that such officers and employees shall not be entitled to any deputation allowance: Provided further that the conditions of service applicable to such officers and employees shall be the same as if they are the employees of the local authority.

1. (2) For the purposes of salaries and allowances admissible to the officers and employees referred to in sub-section
2. (1) and allowing them the benefit of gratuity, contributory provident fund, pension and other facilities, they shall be treated in the same manner as if they were the officers and employees of the local authority concerned.
3. (3) The burden of payment of salaries, allowances and other benefits to the officers and employees referred to in a sub-section (1) shall be borne by the Board, out of its own fund, from the date they stand transferred to the Board on deputation.".

In the principal Act, sections 26-A, 26-B, 26-C and 26-D shall be omitted.