Chapter IX DISSOLUTION OR DE-RECOGNITION OF THE INSTITUTE

1. (1) If the Institute proposes its dissolution for any reason, it shall give at least six months written notice to the Government.
2. (2) On receipt of the notice referred to in sub-section (1), the Government shall make such arrangement for administration of the Institute from the date of dissolution of the Institute and until the last batch of students in regular courses of studies of the Institute complete their courses or studies, in such manner as may be prescribed.

1. (1) The expenditure for administration of the Institute during the process of its dissolution under section 35 shall be met out from the permanent endowment fund, the general fund and the development fund.
2. (2) If the funds referred to in sub-section
3. (1) are not suffi cient to meet the expenditure of the Institute, such expenditure may be met by disposing of the properties or assets of the Institute by the Government.

1. (1) Where the Government receives a complaint with material and substantial allegation that the Institute is not functioning in accordance with the provisions of this Act, it shall require the Institute to show cause within such time, which shall not be less than two months, referring a copy of the complaint as to why the Institute should not be de-recognised.
2. (2) If, upon receipt of the reply of the Institute to the notice given under sub-section (1), the Government is satisfi ed that a prima facie case of mismanagement or violation of the provisions of this Act in the functioning of the Institute is made out, it shall order such enquiry as it deems necessary.
3. (3) For the purposes of an inquiry under sub-section (2), the Government shall by notifi cation, appoint an offi cer or authority as the inquiring authority to enquire into the allegations of violation of the provisions of this Act.
4. (4) Every inquiring authority appointed under sub-section
5. (3) shall while performing its functions under this Act have all the powers of Civil Court under the Code of Civil Procedure, 1908 trying a suit and in particular in respect of the following matters, namely:—
   • (a) summoning and enforcing the attendance of any witness and examining him on oath;
   • (b) requiring the discovery and production of any document;
   • (c) requisitioning any public record or copy thereof from any offi ce;
   • (d) receiving evidence on affi davits;
   • (e) any other matter which may be prescribed.
6. (5) If, upon receipt of the inquiry report, the Government is satisfi ed that the Institute has violated any provisions of this Act, it shall direct the Institute to make necessary improvement and suggest for proper implementation of the provisions of this Act.
7. (6) If it is observed that the Institute is violating the Act continuously leading to a situation of fi nancial mismanagement or maladministration of the Institute which threatens the academic standards of the Institute, it may appoint an administrator.
8. (7) The administrator appointed under sub-section
9. (6) shall exercise all the powers and perform all the duties of the Governing Council under this Act and shall administer the aff airs of the Institute until the last batch of the students of the regular courses have completed their courses / syllabus and they have been awarded with degrees, diplomas or other academic distinctions, as the case may be.
10. (8) After having been awarded the degrees, diplomas or academic distinctions, as the case may be, to the last batch of the students of the regular courses, the administrator shall make a report to that eff ect to the Government.
11. (9) On receipt of the report under sub-section (8), the Government after due consideration, continue the functioning of the Institute by vesting the powers of the Governing Council in any other society or trust or any other body having similar objectives or may with the prior approval of the UGC and other regulatory bodies concerned de-recognize the Institute.
12. (10) During the process of de-recognition under sub-section (9), the Government may utilise the permanent endowment fund, the general fund or the development fund for the purpose of the management of the aff airs of the Institute. If the funds of the Institute are not suffi cient to meet the requisite expenditure of the Institute, the Government may dispose of the assets or the properties of the Institute to meet the said expenses.

In case of dissolution or de-recognition of the Institute, all assets and properties including permanent endowment fund, general fund, development fund or any other fund and also the liabilities of the Institute shall belong to the Society.