BE it enacted by Parliament in the Forty-fifth Year of the
Republic of India as follows:-

1.Short title and commencement

1. Short title and commencement.- (1) This Act may be called the
Punjab Gram Panchayat, Samities and Zilla Parishad (Chandigarh Repeal)
Act, 1994.(2) It shall come into force on such date as the Central
Government may, by notification in the Official Gazette, appoint.

2.Repeal of Punjab Acts 4 of 1953 and 3 of 1961.2. Repeal of Punjab Acts 4 of 1953 and 3 of 1961.- The Punjab Gram
Panchayat Act, 1952 and the Punjab Panchayat, Samities and Zilla
Parishads Act, 1961, in so far as they extend to and operate as part of the law of, the Union territory of Chandigarh, are hereby repealed.

—————————————————————-
1. 23-4-1994 : Vide Notification No. s.o 323 (E), dt. 23-4-94.—————————————————————-

2.3.Saving.

3. Saving.- Notwithstanding the repeal of the Punjab Gram
Panchayat Act, 1952 Punjab Act 4 of 1953. and the Punjab Panchayat
Samities, and Zilla. Parishads. Act, 1961 punjab Act 3 of 1961.(hereinafter referred to as repealed Acts) the repeal shall not,-

(a) affect the previous operation of the repealed Acts or anything duly done or suffered thereunder; or

(b) affect any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Acts; or

(c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against repealed Acts, affect any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted continued or enforced, and any such privilege, forfeiture or punishment may be imposed as if this Act had not been passed.

1. SHORT TITLE, EXTENT AND COMMENCEMENT. – (1) This Act may be called the Bonded Labour System (Abolition) Act, 1976.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 25th day of October, 1975.

2. DEFINITIONS. – In this Act, unless the context otherwise requires,- (a) advance means an advance, whether in cash or kind, or partly in cash or partly in kind, made by one person (hereinafter referred to as the creditor) to another person (hereinafter referred to as the debtor)
(b) agreement means an agreement (whether written or oral, or partly written and partly oral) between a debtor and creditor, and includes an agreement providing for forced labour, the existence of which is presumed under any social custom prevailing in the concerned locality.
Explanation : The existence of an agreement between the debtor and creditor is ordinarily presumed, under the social customs, in relation to the following forms of forced labour, namely : Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru- Galu, Hali, Hari, Harwail, Holya, Jana, Jeetha, Kamiya, Khundit- Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji, Sanjawat, Sewak, Sewakia, Seri, Vetti;
(c) ascendant or descendant, in relation to a person belonging to a matriarchal society, means the person who corresponds to such expression in accordance with the law of succession in force in such society;
(d) bonded debt means an advance obtained, or presumed to have been obtained, by a bonded labourer under, or in pursuance of, the bonded labour system;
(e) bonded labour means any labour or service rendered under the bonded labour system;
(f) bonded labourer means a labourer who incurs, or has, or is presumed to have, incurred, a bonded debt;
(g) bonded labour system means the system of forced, or partly forced, labour under which a debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to the effect that – (i) in consideration of an advance obtained by him or by any of his lineal ascendants or descendants (whether or not such advance is evidenced by the document) and in consideration of the interest, if any, due on such advance, or
(ii) in pursuance of any customary or social obligation, or
(iii) in pursuance of any obligation devolving on him by succession, or
(iv) for any economic consideration received by him or by any of his lineal ascendants or descendants, or
(v) by reason of his birth in any particular caste or community, he would- (1) render, by himself or through any member of his family, or any person dependent on him, labour or service, to the creditor, or for the benefit of the creditor, for a specific period or for an unspecified period, either without wages or for nominal wages, or
(2) forfeit the freedom of employment or other means of livelihood for an specified period or for an unspecified period, or
(3) forfeit the right to move freely throughout the territory of India, or
(4) forfeit the right to appropriate or sell at market-value any of his property or product of his labour or the labour of a member of his family or any person dependent on him. and includes the system of forced, or partly forced, labour under which a surety for a debtor enters, or has, or is presumed to have, entered into an agreement with the creditor to the effect that in the event of the failure of the debtor to repay the debt, he would render the bonded labour on behalf of the debtor;
Explanation : For the removal of doubts, it is hereby declared that any system of forced, or partly forced labour under which any workman being contract labour as defined in clause (b) of sub-section (1) of Section 2 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970), or an inter-State migrant workman as defined in clause (e) of sub-section (1) of Section 2 of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (30 of 1979), is required to render labour or service in circumstances of the nature mentioned in sub-clause (1) of this clause or is subjected to all or any of the disabilities referred to in sub-clauses (2) to (4), is $bonded labour system$ within the meaning of this clause.
(h) family, in relation to a person, includes the ascendant and descendant of such person;
(i) nominal wages, in relation to any labour, means a wage which is less than,- (a) the minimum wages fixed by the Government, in relation to the same or similar labour, under any law for the time being in force ; and
(b) where no such minimum wage has been fixed in relation to any form of labour, the wages that are normally paid, for the same or similar labour, to the labourers working in the same locality;
(j) prescribed means prescribed by rules made under this Act.

3. ACT TO HAVE OVERRIDING EFFECT. – The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act, or in any instrument having effect by virtue of any enactment other than this Act.

4. ABOLITION OF BONDED LABOUR SYSTEM. – (1) On the commencement of this Act, the bonded labour system shall stand abolished and every bonded labourer shall, on such commencement, stand freed and discharged from any obligation to render, any bonded labour.
(2) After the commencement of this Act, no person shall- (a) make any advance under, or in pursuance of, the bonded labour system, or
(b) compel any person to render any bonded labour or other form of forced labour.

5. AGREEMENT, CUSTOM ETC., TO BE VOID. – On the commencement of this Act, any custom or tradition or any contract, agreement or other instrument (whether entered into or executed before or after the commencement of this Act,) by virtue of which any person, or any member of the family or dependent of such person, is required to do any work or render any service as a bonded labourer, shall be void and inoperative.

6. LIABILITY TO REPAY BONDED DEBT TO STAND EXTINGUISHED. – (1) On the commencement of this Act, every obligation of a bonded labourer to repay any bonded debt, or such part of any bonded debt unsatisfied immediately before such commencement, shall be deemed to have been extinguished.
(2) After the commencement of this Act, no suit or other proceedings shall lie in any civil or before any other authority for the recovery of any bonded debt or any part thereof.
(3) Every decree or order for the recovery of bonded debt, passed before the commencement of this Act and not fully satisfied before such commencement, shall be deemed, on such commencement, to have been fully satisfied.
(4) Every attachment made before the commencement of this Act, for the recovery of any bonded debt, shall, on such commencement, stand vacated; and, where, in pursuance of such attachment, any movable property of the bonded labourer was seized and removed from his custody and kept in the custody of any court or other authority pending sale thereof, such movable property shall be restored, as soon as may be practicable after such commencement, to the possession of the bonded labourer.
(5) Where, before the commencement of this Act, possession of any property belonging to a bonded labourer or a member of his family or other dependent was forcibly taken over by any creditor for the recovery of any bonded debt, such property shall be restored, as soon as may be practicable after such commencement, to the possession of the person from whom it was seized.
(6) If restoration of the possession of any property referred to in sub-section (4) or sub-section (5) is not made within thirty days from the commencement of this Act, the aggrieved person may, within such time as may be prescribed, apply to the prescribed authority for the restoration of the possession of such property and the prescribed authority may, after giving the creditor a reasonable opportunity of being heard, direct the creditor to restore to the applicant the possession of the concerned property within such time as may be specified in the order.
(7) An order made by any prescribed authority, under sub-section (6), shall be deemed to be an order made by a civil court and may be executed by the court of the lowest pecuniary jurisdiction within the local of whose jurisdiction the creditor voluntarily resides or carries on business or personally works for gain.
(8) For the avoidance of doubts, it is hereby declared, that where any attached property was sold before the commencement of this Act, in execution of a decree or order for the recovery of a bonded debt, such sale shall not be affected by any provision of this Act.
Provided that the bonded labourer, or an agent authorised by him in this behalf, may, at any time within five years from such commencement, apply to have the sale set aside on his depositing in court, for payment to the decree-holder, the amount specified in the proclamation of sale, for the recovery of which the sale was ordered, less any amount, as well as mesne profits, which may, since the date of such proclamation of sale, have been received by the decree-holder.
(9) Where any suit or proceeding, for the enforcement of any obligation under the bonded labour system, including a suit or proceeding for the recovery of any advance made to a bonded labourer, is pending at the commencement of this Act, such suit or other proceeding shall, on such commencement stand dismissed.
(10) On the commencement of this Act, every bonded labourer who has been detained in civil prison, whether before or after judgment, shall be released from detention forthwith.

7. PROPERTY OF BONDED LABOURER TO BE FREED FROM MORTGAGE, ETC. – (1) All property vested in a bonded labourer which was immediately before the commencement of this Act under any mortgage, charge, lien or other encumbrances in connection with any bonded debt shall, in so far as it is relatable to the bonded debt, stand freed and discharged from such mortgage, charge, lien or other encumbrances, and where any such property was, immediately before the commencement of this Act, in the possession of the mortgage or the holder of the charge, lien or encumbrance, such property shall (except where it was subject to any other charges), on such commencement, be restored to the possession of the bonded labourer.
(2) If any delay is made in restoring any property, referred to in sub-section (1), to the possession of the bonded labourer, such labourer shall be entitled, on and from the date of such commencement, to recover from the mortgage or holder of the lien, charge or encumbrance, such mesne profits as may be determined by the civil court of the lowest pecuniary jurisdiction within the local limits of whose jurisdiction such property is situated.

8. FREED BONDED LABOURER NOT TO BE EVICTED FROM HOMESTEAD, ETC. – (1) No person who has been freed and discharged under this Act from any obligation to render any bonded labour, shall be evicted from any homestead or other residential premises which he was occupying immediately before the commencement of this Act as part of the consideration for the bonded labour.
(2) If, after the commencement of this Act, any such person is evicted by the creditor from any homestead or other residential premises, referred to in sub-section (1), the Executive Magistrate in charge of the Sub-Division within which such homestead or residential premises is situated shall, as practicable, restore the bonded labourer to the possession of such homestead or other residential premises.

9. CREDITOR NOT TO ACCEPT PAYMENT AGAINST EXTINGUISHED DEBT. – (1) No creditor shall accept any payment against any bonded debt which has been extinguished or deemed to have been extinguished or fully satisfied by virtue of the provisions of this Act.
(2) Whoever contravenes the provisions of sub-section (1), shall be punishable with imprisonment for a term which may extend to three years and also with fine.
(3) The court, convicting any person under sub-section (2) may, in addition to the penalties which may be imposed under that sub- section, direct the person to deposit, in court, the amount accepted in contravention of the provisions of sub-section (1), within such period as may be specified in the order for being refunded to the bonded labourer.

10. AUTHORITIES WHO MAY BE SPECIFIED FOR IMPLEMENTING THE PROVISIONS OF THIS ACT. – The State Government may confer such powers and impose such duties on a District Magistrate as may be necessary to ensure that the provisions of this Act are properly carried out and the District Magistrate may specify the officer, subordinate to him, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed and the local limits within which such powers or duties shall be carried out by the officer so specified.

11. DUTY OF DISTRICT MAGISTRATE AND OTHER OFFICERS TO ENSURE CREDIT. – The District Magistrate authorised by the State Government under Section 10 and the officer specified by the District Magistrate under that section shall, as far as practicable, try to promote the welfare of the freed bonded labourer by securing and protecting the economic interests of such bonded labourer so that he may not have any occasion or reason to contract any further bonded debt.

12. DUTY OF DISTRICT MAGISTRATE AND OFFICERS AUTHORISED BY HIM. – It shall be the duty of every District Magistrate and every officer specified by him under Section 10 to inquire whether, after the commencement of this Act, any bonded labour system or any other form of forced labour is being enforced by, or on behalf of, any person resident within the local limits of his jurisdiction and if, as a result of such inquiry, any person is found to be enforcing the bonded labour system or any other system of forced labour, he shall forthwith take such action as may be necessary to eradicate of such forced labour.
Comment: whenever it is shown that a labourer is made to provide forced labour, the Court would raise a presumption that he is required to do so in consideration of an advance or other economic consideration received by him and he is therefore a bonded labourer. This presumption may be rebutted by the employer and also by the State Government if it so chooses but unless and until satisfactory material is produced for rebutting this presumption, the Court must proceed on the basis that the labourer is a bonded labourer entitled to the benefit of the provisions of the Act. Bandhua Mukti Morcha, Petitioner v. Union of India and others, Respondents. AIR 1984 SUPREME COURT 802

13. VIGILANCE COMMITTEE. – (1) Every State Government shall, by notification in the Official Gazette, constitute such number of Vigilance Committees in each district and each Sub-Division as it may think fit.
(2) Each Vigilance Committee, constituted for a district, shall consist of the following members, namely- (a) the District Magistrate, or a person nominated by him, who shall be the Chairman;
(b) three persons belonging to the Scheduled Castes or Scheduled Tribes and residing in the District, to be nominated by the District Magistrate;
(c) two social workers, resident in the district, to be nominated by the District Magistrate;
(d) not more than three persons to represent the official or non- official agencies in the district connected with rural development, to be nominated by the State Government;
(e) one person to represent the financial and credit institutions in the district, to be nominated by the District Magistrate;
(3) Each Vigilance Committee, constituted for a Sub-Division, shall consist of the following members, namely- (a) the Sub-Divisional Magistrate, or a person nominated by him, who shall be the Chairman;
(b) three persons belonging to the Scheduled Castes or Scheduled Tribes and residing in the Sub-Division, to be nominated by the Sub-Divisional Magistrate;
(c) two social workers, resident in the Sub-Division to be nominated by the Sub-Divisional Magistrate;
(d) not more than three persons to represent the official or non- official agencies in the Sub-Division connected with rural development to be nominated by the District Magistrate.
(e) one person to represent the financial and credit institutions in the Sub-Division, to be nominated by the Sub-Divisional Magistrate;
(f) one officer specified under Section 10 and functioning in the Sub-Division.
(4) Each Vigilance Committee shall regulate its own procedure and secretarial assistance, as may be necessary, shall be provided by- (a) the District Magistrate, in the case of a Vigilance Committee constituted for the district;
(b) the Sub-Divisional Magistrate, in the case of a Vigilance Committee constituted for the Sub-Division.
(5) No proceeding of a Vigilance Committee shall be invalid by reason of any defect in the constitution, or in the proceedings, of the Vigilance Committee.

15. BURDEN OF PROOF. – Whenever any debt is claimed by a bonded labourer, or a Vigilance Committee, to be a bonded debt, the burden of proof that such debt is not a bonded debt shall lie on the creditor.

16. PUNISHMENT FOR ENFORCEMENT OF BONDED LABOUR. – Whoever, after the commencement of this Act, compels any person to render any bonded labour shall be punishable with imprisonment for a term which may extend to three years and also with fine which may extend to two thousand rupees.

17. PUNISHMENT FOR ADVANCEMENT OF BONDED DEBT. – Whoever advances, after the commencement of this Act, any bonded debt shall be punishable with imprisonment for a term which may extend to three years and also with fine which may extend to two thousand rupees.

18. PUNISHMENT FOR EXTRACTING BONDED LABOUR UNDER THE BONDED LABOUR SYSTEM. – Whoever enforces, after the commencement of this Act, any custom, tradition, contract, agreement or other instrument, by virtue of which any person or any member of the family of such person or any dependent of such person is required to render any service under the bonded labour system, shall be punishable with imprisonment for a term which may extend to three years and also with fine which may extend to two thousand rupees; and, out of the fine, if recovered, payment shall be made to the bonded labourer at the rate of rupees five for each day for which the bonded labour was extracted from him.

19. PUNISHMENT FOR OMISSION OR FAILURE TO RESTORE POSSESSION OF PROPERTY TO BONDED LABOURERS. – Whoever, being required by this Act to restore any property to the possession of any bonded labourer, omits or fails to do so, within a period of thirty days from the commencement of this Act, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both; and, out of the fine, if recovered, payment shall be made to the bonded labourer at the rate of rupees five for each day during which possession of the property was not restored to him.

20. ABETMENT TO BE AN OFFENCE. – Whoever abets any offence punishable under this Act shall, whether or not the offence abetted is committed, be punishable with the same punishment as is provided for the offence which has been abetted.
Explanation : For the purpose of this Act, abetment has the meaning assigned to it in the Indian Penal Code (45 of 1860).

21. OFFENCES TO BE TRIED BY EXECUTIVE MAGISTRATES. – (1) The State Government may confer, on an Executive Magistrate, the powers of a Judicial Magistrate of the first class or of the second class for the trial of offences under this Act; and, on such conferment of powers, the Executive Magistrate, on whom the powers are so conferred, shall be deemed, for the purposes of the Code of Criminal Procedure, 1973 (2 of 1974), to be a Judicial Magistrate of the first class, or of the second class, as the case may be.
(2) An offence under this Act may be tried summarily by a Magistrate.

22. COGNIZANCE OF OFFENCES. – Every offence under this Act shall be cognizable and bailable.

23. OFFENCES BY COMPANIES. – (1) Where any offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation : For the purposes of this section.- (a) company means any body corporate and includes a firm or other association of individual; and
(b) director, in relation to a firm, means a partner in the firm.

24. PROTECTION OF ACTION TAKEN IN GOOD FAITH. – No suit, prosecution or other legal proceeding shall lie against any officer of the State Government or any member of the Vigilance Committee for anything which is in good faith done or intended to be done under this Act.

25. JURISDICTION OF CIVIL COURTS BARRED. – No civil court shall have jurisdiction in respect of any matter to which any provision of this Act applies and no injunction shall be granted by any civil court in respect of anything which is done or intended to be done by or under this Act.

26. POWER TO MAKE RULES. – (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the foregoing power, such rules may provide for all or any of the following matters, namely- (a) the authority to which application for the restoration of possession of property referred to in sub-section (4), or sub- section (5), of Section 6 is to be submitted of sub-section (6) of that section.
(b) the time within which application for restoration of possession of property is to be made, under sub-section (6) of Section 6, to the prescribed authority;
(c) steps to be taken by Vigilance Committee under clause (a) of sub-section (1) of Section 14, to ensure the implementation of the provisions of this Act or of any rule made thereunder;
(d) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is session, for a total period of thirty days which maybe comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or successive sessions aforesaid, both Houses agree in making any modification in the rule of 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.

27. REPEAL AND SAVING. – (1) The Bonded Labour System (Abolition) Ordinance, 1975 (17 of 1975) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance (including any notification published, direction or nomination made, power conferred, duty imposed or officer specified) shall be deemed to have been done or taken under the corresponding provisions of this Act.

3. Application
An application under sub-section (2) of section 10 for the reference of an industrial dispute to a Board, court, Labour Court, Tribunal or National Tribunal shall be made in Form A and shall be delivered personally or forwarded by registered post to the Secretary to the Government of India in the Ministry of Labour and Employment (in triplicate), the Chief Labour Commissioner (Central), New Delhi, and the Regional Labour Commissioner (Central), and the Assistant Labour Commissioner (Central) concerned. The application shall be accompanied by a statement setting forth-

(a) the parties to the dispute;

(b) the specific matters in dispute;

(c) the total number of workmen employed in the undertaking affected;

(d) an estimate of the number of workmen affected or likely to be affected by the dispute; and

(e) the efforts made by the parties themselves to adjust the dispute.

4. Attestation of application
The application and the statement accompanying it shall be signed-

(a) in the case of an employer by the employer himself, or when the employer is an incorporated company or other body corporate, by the agent, manager or other principal officer of the Corporation;

(b) in the case of workmen, either by the President and Secretary of a trade union of the workmen, or by five representatives of the workmen duly authorised in this behalf at a meeting of the workmen held for the purpose;

3[(c) in the case of an individual workman, by the workman himself or by any officer of the trade union of which he is a member or by another workman in the same establishment duly authorised by him in this behalf :

PROVIDED that such workman is not a member of a different trade union.

5. Notification of appointment of Board, court, Labour Court, Tribunal or National Tribunal
The appointment of a Board, court, Labour Court, Tribunal or National Tribunal together with the names of persons constituting the Board, court, Labour Court, Tribunal or National Tribunal shall be notified in the Official Gazette.

6. Notice to parties to nominate representatives
(1) If the Central Government proposes to appoint a Board, it shall send a notice in Form B to the parties requiring them to nominate within a reasonable time, persons to represent them on the Board.

(2) The notice to the employer shall be sent to the employer personally, or if the employer is an incorporated company or a body corporate, to the agent, manager or other principal officer of such company or body.

(3) The notice to the workmen shall be sent-

(a) in the case of workmen who are members of a trade union, to the President or Secretary of the trade union; and

(b) in the case of workmen who are not members of a trade union, to any one of the five representatives of the workmen who have attested the application made under rule 3; and in this case a copy of the notice shall also be sent to the employer who shall display copies thereof on notice boards in a conspicuous manner at the main entrance to the premises of the establishment
PART II :

 ARBITRATION AGREEMENT

7. Arbitration agreement
An arbitration agreement for the reference of an industrial dispute to an arbitrator or arbitrators shall be made in Form C and shall be delivered personally or forwarded by registered post 4[to the Secretary to the Government of Indian the ministry of Labour (in triplicate)], the Chief Labour Commissioner (Central), New Delhi, and the Regional Labour Commissioner (Central) and the Assistant Labour Commissioner (Central) concerned. The agreement shall be accompanied by the consent, in writing, of the arbitrator or arbitrators.

8. Attestation of the arbitration agreement
The arbitration agreement shall be signed-

(a) in the case of an employer, by the employer himself, or when the employer is an incorporated company or other body corporate, by the agent, manager, or other principal officer of the Corporation;

4[(b) in the case of the workmen, by any officer of a trade union of the workmen or by five representatives of the workmen duly authorised in this behalf at a meeting of the workmen held for the purpose;]

5[(C) in the case of an individual workman, by the workman himself or by any officer of a trade union of which he is a member or by another workman in the same establishment duly authorised by him in this behalf :

PROVIDED that such workman is not a member of a different trade union.]

Explanation : In this rule officer means any of the following officers, namely :

(a) the President;

(b) the Vice-President;

(c) the Secretary (including the General Secretary)

(d) a Joint Secretary;

(e) any other officer of the trade union authorised in this behalf by the President and Secretary of the union.

6[8A. Notification regarding arbitration agreement by majority of each party
Where an industrial dispute has been referred to arbitration and the Central Government is satisfied that the persons making the reference represent the majority of each party, it shall publish a notification in this behalf in the Official Gazette for the information of the employers and workmen who are not parties to the arbitration agreement but are concerned in the dispute.]
PART III :

 POWERS, PROCEDURE AND DUTIES OF CONCILIATION OFFICERS, BOARDS, COURTS, LABOUR COURTS, TRIBUNALS, NATIONAL TRIBUNAL AND ARBITRATORS

9. Conciliation proceedings in public utility service
(1) The Conciliation Officer, on receipt of a notice of a strike or lock-out given under rule 71 or rule 72, shall forthwith arrange to interview both the employer and the workmen concerned with the dispute at such places and at such times as he may deem fit and shall endeavour to bring about a settlement of the dispute in question.

7[(2) Where the Conciliation Officer receives no notice of a strike or lock- out under rule 71 or rule 72 but he considers it necessary to intervene in the dispute he may give formal intimation in writing to the parties concerned declaring his intention to commence conciliation proceedings with effect from such date as may be specified therein.]

10. Conciliation proceedings in non-public utility service
Where the Conciliation Officer receives any information about an existing or apprehended industrial dispute which does not relate to public utility service and he considers it necessary to intervene in the dispute, he shall give formal intimation in writing to the parties concerned declaring his intention to commence conciliation proceedings with effect from such date as may be specified therein.

8[10A. Parties to submit statements
The employer or the party representing workmen 9[or in the case of individual workman, the workman himself] involved in an industrial dispute shall forward a statement setting forth the specific matters in dispute to the Conciliation Officer concerned whenever his intervention in the dispute is required.]

10[10B. Proceeding before the Labour Court, Tribunal or National Tribunal
(1) While referring an industrial dispute for adjudication to a Labour Court, Tribunal or National Tribunal, the Central Government shall direct the party raising the dispute to file a statement of claim complete with relevant documents, list of reliance and witnesses with the Labour Court, Tribunal or National Tribunal within fifteen days of the receipt of the order of reference and also forward a copy of such statement to each one of the opposite parties involved in the dispute.

(2) The Labour Court ,Tribunal or National Tribunal after ascertaining that copies of statement of claim are furnished to the other side by party raising the dispute shall fix the first hearing on a date not beyond one month from the date of receipt of the order of reference and the opposite party or parties shall file their written statement together with documents, list of reliance and witnesses within a period of 15 days from the date of first hearing and simultaneously forward a copy thereof to the other party.

(3) Where the Labour Court, Tribunal or National Tribunal, as the case may be, finds that the party raising the dispute though directed did not forward the copy of the statement of claim to the opposite party or parties, it shall give direction to the concerned party to furnish the copy of the statement to the opposite party or parties and for the said purpose or for any other sufficient cause, extend the time limit for filing the statement under sub-rule (1) or written statement under sub-rule (2) by an additional period of 15 days.

(4) The party raising a dispute may submit a rejoinder if it chooses to do so, to the written statement(s) by the appropriate party or parties within a period of fifteen days from the filing of written statement by the latter.

(5) The Labour Court, Tribunal or National Tribunal, as the case may be, shall fix a date for evidence within one month from the date of receipt of the statements, documents, list of witnesses, etc. which shall be ordinarily within sixty days of the date on which the dispute was referred for adjudication.

(6) Evidence shall be recorded either in court or on affidavit but in the case of affidavit the opposite party shall have the right to cross-examine each of the deponents filing the affidavit. As the oral examination of each witness proceeds, the Labour Court, Tribunal or National Tribunal shall make a memorandum of the substance of what is being deposed. While recording the evidence the Labour Court, Tribunal or National Tribunal shall follow the procedure laid down in rule 5 of Order XVIII of the First Schedule to the Code of Civil Procedure, 1908.

(7) On completion of evidence either arguments shall be heard immediately or a date shall be fixed for arguments / oral hearing which shall not be beyond a period of fifteen days from the close of evidence.

(8) The Labour Court, Tribunal or National Tribunal, as the case may be, shall not ordinarily grant an adjournment for a period exceeding a week at a time but in any case not more than three adjournments in all at the instance of the parties to the dispute :

PROVIDED that the Labour Court, Tribunal or National Tribunal, as the case may be, for reasons to be recorded in writing, grant an adjournment exceeding a week at a time but in any case not more than three adjournments at the instance of any one of the parties to the dispute.

(9) In case any party defaults or fails to appear at any stage the Labour Court, Tribunal or National Tribunal, as the case may be, may proceed with the reference ex parte and decide the reference application in the absence of the defaulting party:

PROVIDED that the Labour Court, Tribunal or National Tribunal, as the case may be, may on the application of either party filed before the submission of the award revoke this order that the case shall proceed ex parte, if it is satisfied that the absence of the party was on justifiable grounds.

(10) The Labour Court, Tribunal or National Tribunal, as the case may be, shall submit its award to the Central Government within one month from the date of arguments/oral hearing or within the period mentioned in the order of reference whichever is earlier.

(11) In respect of reference under section 2A, the Labour Court or Tribunal, National Tribunal, as the case maybe, shall ordinarily submit its awards within a period of three months:

PROVIDED that the Labour Court, Tribunal or National Tribunal, may, as and when necessary, extend the period of three months and shall record its reasons in writing to extend the time for submission of the award for another specified period.]

10[11.
The Conciliation Officer may hold a meeting of the representatives of both parties jointly or of each party separately.]

12. The Conciliation Officer shall conduct the proceedings expeditiously and in such manner as he may deem fit.

13. Place and time of hearing
11[Subject to the provisions contained in rules 10A and 10B] the sittings of a Board, court, Labour Court, Tribunal or National Tribunal or of an arbitrator shall be held at such times and places as the Chairman or the Presiding Officer or the arbitrator, as the case may be, may fix and the Chairman, Presiding Officer or arbitrator, as the case may be, shall inform the parties of the same in such manner as he thinks fit.

14. Quorum for Boards and courts
The quorum necessary to constitute a sitting of a Board or court shall be as follows-

(i) in the case of a Board Quorum

where the number of members is 3 2

where the number of members is 5 3

(ii) in the case of a court

where the number of members is not more than 2 1

where the number of members is more than 2 but less than 5 2

where the number of members is 5 or more 3

15. Evidence
A Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator may accept, admit or call for evidence at any stage of the proceedings before it/him and in such manner as it/ he may think fit.

16. Administration of oath
Any member of a Board or court or Presiding Officer of a Labour Court, Tribunal or National Tribunal or an arbitrator may administer an oath.

17. Summons
A summons issued by a Board, court, Labour Court, Tribunal or National Tribunal shall be in Form D and may require any person to produce before it any books, papers or other documents and things in the possession of or under the control of such person in any way relating to the matter under investigation or adjudication by the Board, court, Labour Court, Tribunal or National Tribunal which the Board, court, Tribunal or National Tribunal thinks necessary for the purposes of such investigation or adjudication.

18. Service of summons or notice
Subject to the provisions contained in rule 20, an notice, summons, process or order issued by a Board, court, Labour Court, Tribunal, National Tribunal or an arbitrator empowered to issue such notice, summons, process or order, may be served either personally or by registered post and in the event of refusal by the party concerned to accept the said notice, summons, process or order, the same shall be sent again under certificate of posting.

19 Description of parties in certain cases
Where in any proceeding before a Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator, there are numerous persons arrayed on any side, such persons shall be described as follows-

(1) all such persons as are members of any trade union or association shall be described by the name of such trade union or association; and

(2) all such persons as are not members of any trade union or association shall be described in such manner as the Board, court, Labour Court, Tribunal, National Tribunal or arbitrator, as the case may be, may determine.

20. Manner of service in the case of numerous persons as parties to a dispute
(1) Where there are numerous persons as parties to any proceedings before a Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator and such persons are members of any trade union or association, the service of notice on the Secretary, or where there is no Secretary, on the principal officer, of the trade union or association shall be deemed to be service on such persons.

(2) Where there are numerous persons as parties to any proceeding before a Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator and such persons are not members of any trade union or association, the Board, court, Labour Court, Tribunal, National Tribunal or arbitrator, as the case may be, shall, where personal service is not practicable, cause the service of any notice to be made by affixing the same at or near the main entrance of the establishment concerned.

(3) A notice served in the manner specified in sub-rule (2) shall also be considered as sufficient in the case of such workmen as cannot be ascertained and found.

21. Procedure at the first sitting
At the first sitting of a Board, court, Labour Court, Tribunal or National Tribunal, the Chairman or the Presiding Officer, as the case may be, shall call upon the parties in such order as he may think fit to state their case.

22. Board, court, Labour Court, Tribunal, National Tribunal or arbitrator may proceed ex parte
If without sufficient cause being shown, any party to proceeding before a Board, court, Labour Court, Tribunal, National Tribunal or arbitrator fails to attend or to be represented, the Board, court, Labour Court, Tribunal, National Tribunal or arbitrator may proceed, as if the party had duly attended or had been represented.

23. Power of entry and inspection
A Board, or court, or any member thereof, or a Conciliation Officer, a Labour Court, Tribunal or National Tribunal, or any person authorised in writing by the Board, court, Labour Court, Tribunal or National Tribunal in this behalf may, for the purposes of any conciliation, investigation, enquiry or adjudication entrusted to the Conciliation Officer, Board, court, Labour Court, Tribunal or National Tribunal under the Act, at any time between the hours of sunrise and sunset and in the case of a person authorised in writing by a Board, court, Labour Court, Tribunal or National Tribunal after he has given reasonable notice enter any building, factory, workshop, or other place or premises whatsoever, and inspect the same or any work, machinery, appliance or article therein or interrogate any person therein in respect of anything situated therein or any matter relevant to the subject-matter of the conciliation, investigation, enquiry or adjudication.

24. Power of Boards, courts, Labour Courts, Tribunals and National Tribunal
In addition to the powers conferred by the Act, Boards, courts, Labour Courts, Tribunals and National Tribunal shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908, when trying a suit, in respect of the following matters, namely-

(a) discovery and inspections;

(b) granting adjournment;

(c) reception of evidence taken on affidavit;

and the Board, court, Labour Court, Tribunal or National Tribunal may summon and examine any person whose evidence appears to it to be material and shall be deemed to be a Civil Court within the meaning of sections 480 and 482 of the Code of Criminal Procedure, 1898.

25. Assessors
Where assessors are appointed to advise a Tribunal or National Tribunal under sub-section (4) of section 7A or sub-section (4) of section 7B or by the court, Labour Court, Tribunal or National Tribunal under sub-section (5) of section 11, the court, Labour Court, Tribunal or National Tribunal, as the case may be, shall, in relation to proceeding before it, obtain the advice of such assessors, but such advice shall not be binding on it.

26. Fees for copies of awards or other documents of Labour Court, Tribunal or National Tribunal
12[(1) Fees for making a copy of an award or an order of a Labour Court, Tribunal or National Tribunal or any documents filed in any proceedings before a Labour Court, Tribunal or National Tribunal shall be charged at the rate of Re.1 per page.]

(2) For certifying a copy of any such award or order or document, a fee of Re. 1 shall be payable.

(3) Copying and certifying fees shall be payable in cash in advance.

(4) Where a party applies for immediate delivery of a copy of any such award or order or document, an additional fee equal to one-half of the fee leviable under this rule shall be payable.

27. Decision by majority
All questions arising for decision at any meeting of a Board or Court, save where the court consists of one person, shall be decided by a majority of the vote of the members thereof (including the Chairman) present at the meeting. In the event of an equality of votes the Chairman shall also have a casting vote.

28. Correction of errors
A Board, Court, Labour Court, Tribunal, National Tribunal or arbitrator may at any time correct any clerical mistake or error arising from an accidental slip or omission in any proceedings, report award or decision, either of its or his own.

29. Right of representatives
The representatives of the parties appearing before a Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator shall have the right to examination, cross-examination and of addressing the Board, court, Labour Court, Tribunal or National Tribunal or arbitrator when an evidence has been called.

30. Proceedings before a Board , court, Labour Court ,Tribunal or National Tribunal
The proceedings before a Board, court, Labour Court, Tribunal or National Tribunal shall be held in public:

PROVIDED that the Board, court, Labour Court, Tribunal or National Tribunal may at any stage direct that any witness shall be examined or its proceedings shall be held in camera.
PART IV : REMUNERATION OF CHAIRMAN AND MEMBERS OF COURTS, PRESIDING OFFICERS OF LABOUR COURTS, TRIBUNALS, AND NATIONAL TRIBUNALS, ASSESSORS AND WITNESSES

31. Travelling allowance
The Chairman or a Member of a Board or court or the Presiding Officer or an assessor of a Labour Court, Tribunal or National Tribunal, if a non-official, shall be entitled to draw travelling allowance and halting allowance, for any journey performed by him in connection with the performance of his duties, at the rates admissible and subject to the conditions applicable to a government servant of the first grade under the supplementary rules issued by the Central Government from time to time.

32. Fees
The Chairman and a Member of a Board or court, the Presiding Officer and an assessor of a Labour Court, Tribunal or National Tribunal wherever he is not a salaried officer of government may be granted such fees as may be sanctioned by the Central Government in each case.

33. Expenses of witnesses
Every person who is summoned and duly attends or otherwise appears as a witness before a Board, court, Labour Court, Tribunal or National Tribunal or an arbitrator shall be entitled to an allowance for expenses according to the scale for the time being in force with respect to witnesses in civil courts in the State where the investigation, enquiry, adjudication or arbitration is being conducted.
PART V : NOTICE OF CHANGE

34. Notice of change
Any employer intending to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule 13[to the Act] shall give notice of such intention in Form E.

13[The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment in the Manager’s Office :

PROVIDED that where any registered trade union of workmen exists, a copy of the notice shall also be served by registered post on the secretary of such union.]

PART VI :

 REPRESENTATION OF PARTIES
36. Form of authority under section 36
The authority in favour of a person or persons to represent a workman or group of workmen or an employer in any proceeding under the Act shall be in Form F.

37. Parties bound by acts of representative

A party appearing by a representative shall be bound by the acts of that representative.

PART VII :

 WORKS COMMITTEE

38. Constitution
Any employer to whom an order made under sub-section (1) of section 3 relates shall forthwith proceed to constitute a Works Committee in the manner prescribed in this part.

39. Number of members
The number of members constituting the committee shall be fixed so as to afford representation to the various categories, groups and classes of workmen engaged in, and to the section, shops or departments of the establishment :

PROVIDED that the total number of members shall not exceed twenty:

PROVIDED FURTHER that the number of representatives of the workmen shall not be less than the number of representatives of the employer.

40. Representatives of employer
Subject to the provisions of these rules, the representatives of the employer shall be nominated by the employer and shall as far as possible be officials in direct touch with or associated with the working of the establishment.

41. Consultation with trade unions
(1) Where any workmen of an establishment are members of a registered trade union the employer shall ask the union to inform him in writing-

(a) how many of the workmen are members of the union; and

(b) how their membership is distributed among the sections, shops or departments of the establishment.

(2) Where an employer has reason to believe that the information furnished to him under sub-rule (1) by any trade union is false, he may, after informing the union, refer the matter to the Assistant Labour Commissioner (Central) concerned for his decision; and the Assistant Labour Commissioner (Central), after hearing the parties, shall decide the matter and his decision shall be final.

42. Group of workmen’s representatives
On receipt of the information called for under rule 41, the employer shall provide for the election of workmen’s representative on the committee in two groups-

(1) those to be elected by the workmen of the establishment who are members of the registered trade union or unions, and

(2) those to be elected by the workmen of the establishment who are not members of the registered trade union or unions,

bearing the same proportion to each other as the union members in the establishment bear to the non-members:

PROVIDED that where more than half the workmen are members of the union or any one of the unions, no such division shall be made:

PROVIDED FURTHER that where a registered trade union neglects or fails to furnish the information called for under sub-rule (1) of rule 41 within one month of the date of the notice requiring it to furnish such information such union shall for the propose of this rule be treated as if it did not exist:

PROVIDED ALSO that where any reference has been made by the employer under sub-rule (2) of rule 41, the election shall be held on receipt of the decision of Assistant Labour Commissioner (Central).

43. Electoral constituencies
Where under rule 42 the workmen’s representatives are to be elected in two groups, the workmen entitled to vote shall be divided into two electoral constituencies, the one consisting of those who are members of a registered trade union and the other of those who are not:

PROVIDED that the employer may, if he thinks fit, sub-divide the electoral constituency or constituencies, as the case may be, and direct that workmen shall vote in either by groups, sections, shops or departments.

44. Qualification of candidates for election

Any workman of not less than 19 years of age and with a service of not less than one year in the establishment may, if nominated as provided in these rules be a candidate for election as a representative of the workmen on the committee:

PROVIDED that the service qualification shall not apply to the first election in an establishment which has been in existence for less than a year.

Explanation: A workman who has put in a continuous service of not less than one year in two or more establishments belonging to the same employer shall be deemed to have satisfied the service qualification prescribed under this rule.

45. Qualifications for voters
All workmen 14[* * *] who are not less than 18 years of age and who have put in not less than 6 months’ continuous service in the establishment shall be entitled to vote in the election of the representative or workmen.

15[Explanation : A workman who has put in continuous service of not less than 6 months in two or more establishments belonging to the same employer shall be deemed to have satisfied the service qualification prescribed under this rule.]

46. Procedure for election
(1) The employer shall fix a date as the closing date for receiving nominations from candidates for election as workmen’s representatives on the committee.

(2) For holding the election, the employer shall also fix a date which shall not be earlier than three days and later than fifteen days after the closing date for receiving nominations.

(3) The dates so fixed shall be notified at least seven days in advance to the workmen and the registered trade union or unions concerned. Such notice shall be affixed on the notice board or given adequate publicity amongst the workmen. The notice shall specify the number of seats to be elected by the groups, sections, shops or departments and the number to be elected by the members of the registered trade union or unions and by the non-members.

(4) A copy of such notice shall be sent to the registered trade union or unions concerned.

47. Nomination of candidates for election
(1) Every nomination shall be made on a nomination paper in Form ‘G’ copies of which shall be supplied by the employer to the workmen requiring them.

(2) Each nomination paper shall be signed by the candidate to whom it relates and attested by at least two other voters belonging to the group, section, shop or department the candidate seeking election will represent, and shall be delivered to the employer.

48. Scrutiny of nomination papers
(1) On the day following the last day fixed for filing nomination papers, the nomination papers shall be scrutinised by the employer in the presence of the candidates and the attesting persons and those which are not valid shall be rejected.

(2) For the purpose of sub-rule (1), a nomination paper shall be held to be not valid if (a) the candidate nominated is ineligible for membership under rule 44 or (b) the requirements of rule 47 have not been complied with:

PROVIDED that where a candidate or an attesting person is unable to be present at the time of scrutiny, he may send a duly authorised nominee for the purpose.

15[48A. Withdrawal of candidates validly nominated
Any candidate whose nomination for election has been accepted may withdraw his candidature within 48 hours of the completion of scrutiny of nomination papers.]

49. Voting in election
(1) If the number of candidates who have been validly nominated is equal to the number of seats, the candidates shall be forthwith declared duly elected.

(2) If in any constituency the number of candidates is more than the number of seats allotted to it, voting shall take place on the day fixed for election.

(3) The election shall be held in such manner as may be convenient for each electoral constituency.

(4) The voting shall be conducted by the employer, and if any of the candidates belong to a union such of them as the union may nominate shall be associated with the election.

(5) Every workman entitled to vote at an electoral constituency shall have as many votes as there are seats to be filled in the constituency:

PROVIDED that each voter shall be entitled to cast only one vote in favour of any one candidate.

50. Arrangements for election
The employer shall be responsible for all arrangements in connection with the election.

51. Officers of the Committee
(1) The Committee shall have among its office-bearers a Chairman , a Vice-Chairman, a Secretary and a Joint-Secretary. The Secretary and the Joint-Secretary shall be elected every year.

16[(2) The Chairman shall be nominated by the employer from amongst the employer’s representatives on the Committee and he shall, as far as possible, be the head of establishment.

(2A) The Vice-Chairman shall be elected by the members on the Committee representing the workers, from amongst themselves:

PROVIDED that in the event of equality of votes in the election of the Vice-Chairman, the matter shall be decided by draw of a lot.]

(3) The Committee shall elect the Secretary and the Joint Secretary provided that where the Secretary is elected from amongst the representatives of the employers, the Joint Secretary shall be elected from amongst the representatives of the workmen and vice versa:

PROVIDED that the post of the Secretary or the Joint Secretary, as the case may be, shall not be held by a representative of the employer or the workmen for two consecutive years:

17[PROVIDED FURTHER that the representatives of the employer shall not take part in the election of the Secretary or Joint Secretary, as the case may be, from amongst the representatives of the workmen and only the representatives of the workmen shall be entitled to vote in such elections.]

17[(4) In any election under sub-rule (3) , in the event of equality of votes , the matter shall be decided by a draw of lot.]

52. Term of office
16[(1) The term of office of the representatives on the Committee other than a member chosen to fill a casual vacancy shall be two years.]

(2) A member chosen to fill a casual vacancy shall hold office for the unexpired term of his predecessor.

(3) A member who without obtaining leave from the Committee, fails to attend three consecutive meetings of the Committee shall forfeit his membership.

53. Vacancies
In the event of workmen’s representative ceasing to be a member under sub-rule (3) of rule 52 or ceasing to be employed in the establishment or in the event of his ceasing of represent the trade of vocation he was representing or resignation or death, his successor shall be elected in accordance with the provisions of this part from the same category, group, section, shop or department to which the member vacating the seat belonged.

54. Power to co-opt
The Committee shall have the right to co-opt in a consultative capacity persons employed in the establishment having particular or special knowledge of a matter under discussion. Such co-opted member shall not be entitled to vote and shall be present at meetings only for the period during which the particular question is before the Committee.

55. Meetings
(1) The Committee may meet as often as necessary but not less often than once in three months (a quarter).

(2) The Committee shall at its first meeting regulate its own procedure.

56. Facilities for meeting, etc.
(1) The employer shall provide accommodation for holding meetings of the Committee. He shall also provide all necessary facilities to the Committee and to the members thereof for carrying out the work of the Committee. The committee shall ordinarily meet during working hours of the establishment concerned on any working day and the representative of the workmen shall be deemed to be on duty while attending the meeting.

(2) The Secretary of the Committee may, with the prior concurrence of the Chairman, put up notice regarding the work of the Committee on the notice board of the establishment.

56A. Submission of returns
The employer shall submit half yearly returns as in Form G-1 in triplicate to the Assistant Labour Commissioner (Central) concerned not later than the 20th day of the month following the half-year.

57. Dissolution of Works Committee
The Central Government, or where the power under section 3 has been delegated to any officer or authority under section 39, such officer or authority may, after making such inquiry as it or he may deem fit, dissolve any Works Committee at any time, by an order in writing, if he or it is satisfied that the Committee has not been constituted in accordance with these rules or that not less than two-thirds of the number of representatives of the workmen have without any reasonable justification failed to attend three consecutive meetings of the Committee or that the Committee had, for any other reason, ceased to function:

PROVIDED that where a Works Committee is dissolved under this rule the employer may, and if so required by the Central Government or, as the case may be, by such officer or authority, shall take steps to re-constitute the Committee in accordance with these rules.

PART VIII

:MISCELLANEOUS

58. Memorandum of settlement
(1) A settlement arrived at in the course of conciliation proceedings or otherwise, shall be in Form ‘H’.

(2) The settlement shall be signed by -

(a) in the case of an employer, by the employer himself, or by his authorised agent, or when the employer is an incorporated company or other body corporate, by the agent, manager or other principal officer of the corporation;

(b) in the case of the workmen, by any officer of a trade union of the workmen or by five representatives of the workmen duly authorised in this behalf at a meeting of the workmen held for the purpose;

(c) in the case of the workman in an industrial dispute under section 2A of the Act, by the workman concerned.

Explanation: In this rule officer means any of the following officers, namely:

(a) the President;

(b) the Vice-President;

(c) the Secretary (including the General Secretary)

(d) a Joint-Secretary;

(e) any other officer of the trade union authorised in this behalf by the President and Secretary of the union.

(3) Where a settlement is arrived at in the course of conciliation proceeding the Conciliation Officer shall send a report thereof to the Central Government together with a copy of the memorandum of settlement signed by the parties to the dispute.

(4) Where a settlement is arrived at between an employer and his workmen otherwise than in the course of conciliation proceeding before a Board or a Conciliation Officer, the parties to the settlement shall jointly send a copy thereof to the Central Government, the Chief Labour Commissioner (Central), New Delhi, and the Regional Labour Commissioner (Central) and to the Assistant Labour Commissioner (Central) concerned.

59. Complaints regarding change of conditions of service, etc.
(1) Every complaint under section 33A of the Act shall be presented in triplicate in Form ‘I’ and shall be accompanied by as many copies of the complaint as there are opposite parties to the complaint.

(2) Every complaint under sub-rule (1) shall be verified at the foot by workmen making it or by some other person proved to the satisfaction of the Labour Court, Tribunal or National Tribunal to be acquainted with the facts of the case.

(3) The person verifying shall specify, by references to the numbered paragraphs of the complaint, what he verifies of his own knowledge and what he verifies upon information received and believed to be true.

(4) The verification shall be signed by the person making it and shall state the date on which and the place at which it was signed.

60. Application under section 33
(1) An employer intending to obtain the express permission in writing of the Conciliation Officer, Board, Labour Court, Tribunal or National Tribunal, as the case may be, under sub-section (1) or sub-section (3) of section 33 shall present an application in Form ‘J’ in triplicate to such Conciliation Officer, Board, Labour Court, Tribunal or National Tribunal and shall file along with the application as many copies thereof as there are opposite parties.

(2) An employer seeking the approval of the Conciliation Officer, Board, Labour Court, Tribunal or National Tribunal, as the case may be, of any action taken by him under clause (a) or clause (b) of sub-section (2) of section 33 shall present an application in Form ‘K’ in triplicate to such Conciliation Officer, Board, Labour Court, Tribunal or National Tribunal and shall file along with the application as many copies thereof as there are opposite parties.

(3) Every application under sub-rule (1) or sub-rule (2) shall be verified at the foot by the employer making it or by some other person proved to the satisfaction of the Conciliation officer, Board, Labour Court, Tribunal or National Tribunal to be acquainted with the facts of the case.

(4) The person verifying shall specify by reference to the numbered paragraphs of the application, what he verifies of his own knowledge and what he verifies upon information received and believed to be true.

(5) The verification shall be signed by the person making it and shall state the date on which and the place at which it was signed.

61. Protected workmen
(1) Every registered trade union connected with an industrial establishment, to which the Act applies, shall communicate to the employer before the 18[30th April] every year, the names and addresses of such of the officers of the union who are employed in that establishment and who, in the opinion of the union should be recognised as protected workmen. Any change in the incumbency of any such officer shall be communicated to the employer by the union within fifteen days of such change.

(2) The employer shall, subject to section 33, sub-section (4) recognise such workmen to be protected workmen for the purposes of sub-section (3) of the said section and communicate to the union, in writing, within fifteen days of the receipt of the names and addresses under sub-rule (1), the list of workmen recognised as protected workmen 18[for the period of twelve months from the date of such communication.]

(3) Where the total number of names received by the employer under sub-rule (1) exceeds the maximum number of protected workmen, admissible for the establishment, under section 33, sub-section (4), the employer shall recognise as protected workmen only such maximum number of workmen :

PROVIDED that where there is more than one registered trade union in the establishment, the maximum number shall be so distributed by the employer among the unions that the numbers of recognised protected workmen in individual unions bear roughly the same proportion to one another as the membership figures of the unions. The employer shall in that case intimate in writing to the President or the Secretary of the union the number of protected workmen allotted to it:

PROVIDED FURTHER that where the number of protected workmen allotted to a union under this sub-rule falls short of the number of officers of the union seeking protection, the union shall be entitled to select the officers to be recognised as protected workmen. Such selection shall be made by the union and communicated to the employer within five days of the receipt of the employer’s letter.

(4) When a dispute arises between an employer and any registered trade union in any matter connected with the recognition of protected workmen under this rule, the dispute shall be referred to the 17[any Regional Labour Commissioner (Central) or] Assistant Labour Commissioner (Central) concerned, whose decision thereon shall be final.

62. Application for recovery of dues
(1) Where any money is due from an employer to a workman or a group of workmen under a settlement or an award or under the provisions of Chapter VA/ Chapter VB, the workman or the group of workmen, as the case may be, may apply in Form K-1 for the recovery of the money due:

PROVIDED that in the case of a person authorised in writing by the workman, or in the case of the death of the workman, the assignee or heir of the deceased workman, the application shall be made in Form K-2.

(2) Where any workman or a group of workmen is entitled to receive from the employer any money or any benefit which is capable of being computed in terms of money, the workman or the group of workmen, as the case may be, may apply to the specified Labour Court in Form K-3 for the determination of the amount due or, as the case may be, the amount at which such benefit should be computed :

PROVIDED that in the case of the death of a workman, application shall be made in Form K-4 by the assignee or heir of the deceased workman.

63. Appointment of Commissioner
Where it is necessary to appoint a Commissioner under sub-section (3) of section 33-C of the Act, the Labour Court may appoint a person with experience in the particular industry, trade or business involved in the industrial dispute or a person with experience as a Judge of a Civil Court, or as a stipendiary magistrate or as a Registrar or Secretary of a Labour Court, or Tribunal constituted under any Provincial Act or State Act or of a Labour Court, Tribunal or National Tribunal constituted under the Act or of the Labour Appellate Tribunal constituted under the Industrial Disputes (Appellate Tribunal) Act, 1950.

64. Fees for the Commissioner, etc.
(1) The Labour Court shall, after consultation with the parties, estimate the probable duration of the enquiry and fix the amount of the Commissioner’s fees and other incidental expenses and direct the payment thereof into the nearest treasury, within a specified time, by such party or parties and in such proportion as it may consider fit. The Commissioner shall not issue until satisfactory evidence of the deposit into the treasury of the sum fixed is filed before the Labour Court:

PROVIDED that the Labour Court may from time to time direct that any further sum or sums be deposited into the treasury within such time and by such parties as it may consider fit:

PROVIDED FURTHER that the Labour Court may in its discretion, extend the time for depositing the sum into the treasury.

(2) The Labour Court may, at any time, for reasons to be recorded in writing , vary the amount of the Commissioner’s fees in consultation with the parties.

(3) The Labour Court may direct that the fees shall be disbursed to the Commissioner in such instalments and on such date as it may consider fit.

(4) The undisbursed balance, if any, of the sum deposited shall be refunded to the party or parties who deposited the sum in the same proportion as that in which it was deposited.

65. Time for submission of report
(1) Every order for the issue of a Commission shall appoint a date, allowing sufficient time, for the Commissioner to submit his report.

(2) If for any reason the Commissioner anticipates that the date fixed for the submission of his report is likely to be exceeded, he shall apply, before the expiry of the said date, for extension of time setting forth grounds thereof and the Labour Court shall take such grounds into consideration in passing orders on the application:

PROVIDED that the Labour Court may grant extension of time notwithstanding that no application for such extension has been received from the Commissioner within the prescribed time-limit.

66. Local investigation
In any industrial dispute in which the Labour Court deems a local investigation to be requisite or proper for the purpose of computing the money value of a benefit, the Labour Court may issue a commission to a person referred to in rule 63 directing him to make such investigation and to report thereon to it.

67. Commissioner’s report
(1) The Commissioner after such local inspection as he deems necessary and after reducing to writing the evidence taken by him, shall return such evidence together with his report in writing signed by him to the Labour Court.

(2) The report of the Commissioner and the evidence taken by him (but not the evidence without the report) shall be evidence in the industrial dispute and shall form part of the record of the proceedings in the industrial dispute; but the Labour Court or, with the permission of Labour Court any of the parties to the industrial dispute may examine the Commissioner personally before the Labour Court regarding any of the matters referred to him or mentioned in his report or as to his report, or as to the manner in which he has made the investigation.

(3) Where the Labour Court is for any reason dissatisfied with the proceedings of the Commissioner it may direct such further enquiry to be made as it shall think fit.

68. Powers of Commissioner
Any Commissioner appointed under these rules may unless otherwise directed by the order of appointment-

(a) examine the parties themselves and any witnesses whom they or any of them may produce, and any other person whom the Commissioner thinks proper to call upon to give evidence in the matter referred to him;

(b) call for and examine documents and other things relevant to the subject of enquiry;

(c) at any reasonable time enter upon or into any premises mentioned in the order.

69. Summoning of witnesses, etc.
(1) The provisions of the Code of Civil Procedure, 1908 (Act V of 1908) relating to the summoning, attendance, examination of witnesses and penalties to be imposed upon witnesses, shall apply to persons required to give evidence or to produce documents before the Commissioner under these rules.

(2) Every person who is summoned and appears as a witness before the Commissioner shall be entitled to payment by the Labour Court out of the sum deposited under rule 64, of an allowance for expenses incurred by him in accordance with the scale for the time being in force for payment of such allowances to witnesses appearing in the Civil Courts.

70. Representation of parties before the Commissioner
The parties to the industrial dispute shall appear before the Commissioner, either in person or by any other person who is competent to represent them in the proceedings before the Labour Court.

70A. Preservation of records by the National Industrial Tribunals, Industrial Tribunals or Labour Courts
(1) The records of the National Industrial Tribunals, Industrial Tribunals or Labour Courts specified in column 1 of the table below shall be preserved, for the periods specified in the corresponding entry in column 2 thereof after the proceedings are finally disposed of by such National Tribunal, Industrial Tribunals or Labour Courts.

Records
(1) Number of years for which the records shall be preserved
(2)
(i) Orders and judgements of National Industrial Tribunals , Industrial Tribunals or Labour Court 10 years
(ii) Exhibited documents in the above mentioned Tribunals or Courts 10 years
(iii) Other paper 7 years

(2) Notwithstanding anything contained in sub-rule (1), the records of the National Tribunals, Industrial Tribunals or Labour Courts, connected with writ petitions, if any, filed in the High Courts or Supreme Court, or connected with appeals by special leave, if any, filed in the Supreme Court, shall be preserved at least till the final disposal of such writ petitions or appeal by special leave.

71. Notice of strike
(1) The notice of Strike to be given by workmen in public utility service shall be in Form L.

(2) On receipt of a notice of a strike under sub-rule (1), the employer shall forthwith intimate the fact to the Conciliation Officer having jurisdiction in the matter.

72. Notice of lock-out
The notice of lock- out to be given by an employer carrying on a public utility service shall be in Form M. 19[The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment and in the Manager’s office:

PROVIDED that where a registered trade union exists, a copy of the notice shall also be served on the Secretary of the union.]

73. Report of lock- out or strike
The notice of lock-out or strike in a public utility service to be submitted by the employer under sub-section (3) of section 22, shall be in Form N.

74. Report of notice of strike or lock-out
The report of notice of a strike or lock-out to be submitted by the employer under sub-section (6) of section 22 shall be sent by registered post or given personally to the Assistant Labour Commissioner (Central) appointed for the local area concerned, with copy by registered post to-

(1) The Administrative Department of the Government of India concerned,

(2) The Regional Labour Commissioner (Central) for the Zone,

(3) Chief Labour Commissioner (Central),

(4) Ministry of Labour of the Government of India,

(5) Labour Department of the State Government concerned, and

(6) The District Magistrate concerned.

75. Register of settlements
The Conciliation Officer shall file all settlements effected under this Act in respect of disputes in the area within his jurisdiction in a register maintained for the purpose as in Form O.

20[75A. Notice of lay-off
(1) If any workman employed in an industrial establishment as defined in the explanation below section 25A not being an industrial establishment referred to in sub-section (1) of that section is laid-off, then, the employer concerned shall give notices of commencement and termination of such lay- off in Forms O-1 and O-2 respectively within seven days of such commencement or termination, as the case may be.

(2) Such notices shall be given by an employer in every case irrespective of whether, in his opinion, the workman laid-off is or is not entitled to compensation under section 25C.]

75B. Application for permission for lay-off under section 25M
(1) Application for permission to lay-off any workman under sub-section (1), or for permission to continue a lay-off under 21[sub-section (3)] of section 25M shall be made in Form O-3 and delivered to the authority specified under sub-section (1) either personally or by registered post acknowledgement due and where the application is sent by registered post the date on which the same is delivered to the said authority shall be deemed to be the date on which the application is made, for the purposes of 22[sub-section (5)] of the said section.

23[(2) The application for permission shall be made in triplicate and copies of such application shall be served by the employer on the workmen concerned and a proof to that effect shall also be submitted by the employer along with the application.]

(3) The employer concerned shall furnish to the authority to whom the application for permission has been made such further information as the authority considers necessary for arriving at a decision on the application, as and when called for by such authority, so as to enable the authority to communicate the permission or refusal to grant permission within the period specified in 22[sub-section (5)] of section 25M.

(4) Where the permission to lay-off has been granted by the said authority, the employer concerned shall give to the Regional Labour Commissioner (Central) concerned, a notice of commencement and termination of such lay- off in Forms O-1 and O-2 respectively and where permission to continue a lay- off has been granted by the said authority, the employer shall give to the Regional Labour Commissioner (Central) concerned, a notice of commencement of such lay-off in Form O-1, in case such a notice has not already been given under sub-rule (1) of rule 75A, and a notice of termination of such lay-off in Form O-2.

(5) The notice of commencement and termination of lay-off referred to in sub-rule (4) shall be given within the period specified in sub-rule (1) of rule 75A.]

76. Notice of retrenchment
If any employer desires to retrench any workman employed in his industrial establishment who has been in continuous service for not less than one year under him (hereinafter referred to as ‘workman’ in this rule and in rules 77 and 78), he shall give notice of such retrenchment as in Form P to the Central Government, the Regional Labour Commissioner (Central) and Assistant Labour Commissioner (Central) and the Employment Exchange concerned and such notice shall be served on that government, the Regional Labour Commissioner (Central), the Assistant Labour Commissioner (Central), and the Employment Exchange concerned by registered post in the following manner :-

(a) where notice is given to the workman, notice of retrenchment shall be sent within three days from the date on which notice is given to the workman;

(b) where no notice is given to the workman, and he is paid one month’s wages in lieu thereof, notice of retrenchment shall be sent within three days from the date on which such wages are paid; and

(c) where retrenchment is carried out under an agreement which specifies a date for the termination of service, notice of retrenchment shall be sent so as to reach the Central Government, the Regional Labour Commissioner (Central), the Assistant Labour Commissioner (Central), and the Employment Exchange concerned , at least one month before such date:

PROVIDED that if the date of termination of service agreed upon is within 30 days of the agreement, the notice of retrenchment shall be sent to the Central Government, the Regional Labour Commissioner (Central), the Assistant Commissioner (Central), and the Employment Exchange concerned within 3 days of the agreement.

21[76A. Notice of, and application for possession for retrenchment
(1) Notice 22[or, as the case maybe, the application under] sub-section (1) of section 25N for retrenchment shall be served in Form PA and served on the Central Government or such authority as may be specified by the government under the said clause either personally or by registered post acknowledgement due and where the notice is served by registered post, the date on which the same is delivered to the Central Government or the authority shall be deemed to be the date of service of the notice for the purposes of 22[sub-section (4)] of the said section.

23[24[(2) The notice or , as the case may be , the application , shall be made in triplicate and copies of such notice or, as the case may be, the application, shall be served by the employer on the workmen concerned and a proof to that effect shall also be submitted by the employer along with the notice or, as the case may be, the application.]

24[(3) The employer concerned shall furnish to the Central Government or the authority to whom the notice for retrenchment has been given or the application for permission for retrenchment has been made, under sub-section (1) of section 25N, such further information as the Central Government or, as the case may be, the authority considers necessary for arriving at a decision on the notice or, as the case may be, the application, as and when called for by such authority so as to enable the Central Government or the authority to communicate its permission or refusal to grant permission within the period specified in sub-section (4) of section 25N.]]

76B. Notice of closure
If an employer intends to close down an undertaking he shall give notice of such closure in Form Q to the Central Government, the Regional Labour Commissioner (Central), the Assistant Labour Commissioner (Central), and the Employment Exchange concerned, by registered post.

21[76C. Notice of, and application for permission for, closure
(1) Notice under sub-section (1) of section 25-O of intended closure shall be given in Form QA and served on the Central Government either personally or by registered post acknowledgement due.]

25[A copy of such application shall be served simultaneously by registered post on the President or Secretary of registered trade union(s) functioning in the establishment and a notice in this regard shall also be displayed conspicuously by the employer on a notice board at the main entrance to the establishment for the information of all the concerned workmen at the same time when applications are served on the Central Government.]

26[(2) The notice, or, as the case may be, the application shall be made in triplicate.

(3) The employer concerned shall furnish to the Central Government to whom the notice of intended closure has been given or the application for permission to close down has been made, such further information as that government considers necessary, for arriving at a decision on the notice, or, as the case may be, the application, and calls for from such employer.]

77. Maintenance of seniority list of workmen
The employer shall prepare a list of all workmen in the particular category from which retrenchment is contemplated arranged according to the seniority of their service in that category and cause a copy thereof to be pasted on a notice board in a conspicuous place in the premises of the industrial establishment at least seven days before the actual date of retrenchment.

78. Re-employment of retrenched workmen
(1) At least ten days before the date on which vacancies are to be filled, the employer shall arrange for the display on a notice board in a conspicuous place in the premises of the industrial establishment details of those vacancies and shall also give intimation of those vacancies by registered post to every one of all the retrenched workmen eligible to be considered therefor, to the address given by him at the time of retrenchment or at any time thereafter:

PROVIDED that where the number of such vacancies is less than the number of retrenched workmen, it shall be sufficient if intimation is given by the employer individually to the senior-most retrenched workmen in the list referred to in rule 77 the number of such senior-most workmen being double the number of such vacancies:

PROVIDED FURTHER that where the vacancy is of a duration of less than one month there shall be no obligation on the employer to send intimation of such vacancy to individual retrenched workmen:

27[ PROVIDED ALSO that if a retrenched workman, without sufficient cause being shown in writing to the employer, does not offer himself for re-employment on the date or dates specified in the intimation sent to him by the employer under this sub-rule, the employer may not intimate to him the vacancies that may be filled on any subsequent occasion.]

(2) Immediately after complying with the provisions of sub-rule (1), the employer shall also inform the trade unions connected with the industrial establishment, of the number of vacancies to be filled and names of the retrenched workmen to whom intimation has been sent under that sub-rule:

PROVIDED that the provisions of this sub-rule need not be complied with by the employer in any case where intimation is sent to every one of the workmen mentioned in the list prepared under rule 77.

79. Penalties
Any breach of these rules shall be punishable with fine not exceeding fifty rupees.

80. Repeal
The Industrial Disputes (Central) Rules, 1947, are hereby repealed :

PROVIDED that any order made or action taken under the rules so repealed shall be deemed to have been made or taken under the corresponding provisions of these rules

PRELIMINARY
1. Title and application
1) These rules may be called the Industrial Disputes (Central) Rules, 1957.

(2) They extend to Union Territories in relation to all industrial disputes and to the States in relation only to an industrial dispute concerning-

(a) any industry carried on by or under the authority of the Central Government or by a railway company; or

(b) a banking or an insurance company, a mine, an oilfield, or a major port; or

(c) any such controlled industry as maybe specified under section 2(a)(i) of the Act by the Central Government.

1[***]

2. Interpretation
In these rules, unless there is anything repugnant in the subject or context-

(a) Act means the Industrial Disputes Act, 1947 (14 of 1947)

(b) Chairman means the Chairman of a Board or court or, if the court consists of one person only, such person;

(c) Committee means a Works Committee constituted under sub-section (1) of section 3 of the Act;

(d) form means a form in the Schedule to these rules;

(e) section means a section of the Act;

(f) in relation to an industrial dispute in a Union Territory, for which the appropriate government is the Central Government , reference to the Central Government or the Government of India shall be construed as a reference to the Administrator of the territory, and reference to the Chief Labour Commissioner (Central), Regional Labour Commissioner (Central) and the 2[Assistant Labour Commissioner (Central)] shall be construed as reference to the appropriate authority, appointed in that behalf by the Administrator of the territory;

(g) with reference to clause (g) of section 2, it is hereby prescribed that-

(i) in relation to an industry, not being an industry referred to in sub-clause (ii), carried on by or under the authority of a department of the Central or a State Government, the officer-in-charge of the industrial establishment shall be the $employer$ in respect of that establishment; and

(ii) in relation to an industry concerning railways , carried on by or under the authority of a department of the Central Government,-

(a) in the case of establishments of a Zonal Railway, the General Manager of that Railway shall be the $employer$ in respect of regular railway servants other than casual labour;

(b) in the case of an establishment independent of a Zonal Railway, the officer-in-charge of the establishment shall be the employer in respect of regular railway servants other than casual labour; and

(c) the District Officer-in-charge or the Divisional Personnel Officer or the Personnel Officer shall be the employer in respect of casual labour employed on a Zonal Railway or any other railway establishment independent of a Zonal Railway

(2) It extends to the whole of India.

2. Definitions
In this Act, unless the context otherwise requires,-

(a) Fund means the Public Provident Fund established under the Scheme;

(b) minor means a person who is not deemed to have attained majority under the Indian Majority Act, 1875;

(c) Scheme means the Public Provident Fund Scheme framed under sub-section (1) of section 3;

(d) subscriber means an individual who makes subscription to the Fund under section 4 and where such subscription is made by an individual on behalf of a minor, of whom he is the guardian, such minor;

(e) year means the financial year.

3. Public Provident Fund Scheme
(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Public Provident Fund Scheme for the establishment of a provident fund for the general public and there shall be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme.

(2) Subject to the provisions of this Act, the Scheme may provide for all or any of the matters specified in the Schedule.

(3) The Scheme shall have effect notwithstanding anything contained in any law for the time being in force other than this Act or in any instrument having effect by virtue of any law other than this Act.

(4) The Central Government may, from time to time, by notification in the Official Gazette, add to, amend or vary the Scheme.

4. Subscriptions to Fund
Any individual may, on his own behalf or on behalf of a minor, of whom he is the guardian, subscribe to the Fund in such manner and subject to such maximum and minimum limits as may be specified in the Scheme.

5. Interest
All subscriptions made under section 4 shall bear interest at such rate as may be notified by the Central Government in the Official Gazette, from time to time, and the interest shall be calculated in such manner as may be specified in the Scheme.

6. Withdrawals
(1) A subscriber shall be entitled to make withdrawals from the amount standing to his credit in the Fund (including any interest accrued thereon) to such extent and subject to such terms and conditions as may be specified in the Scheme:

Provided that such withdrawals shall be allowed only after the expiry of a period of five years from the end of the year in which he makes the initial subscription to the Fund.

(2) Notwithstanding anything contained in sub-section (1), a subscriber shall be entitled to withdraw the entire balance standing to his credit in the Fund after the expiry of a period of fifteen years from the end of the year in which he makes the initial subscription to the Fund.

(3) Subject to the provisions of sub-sections (1) and (2), an individual who has made subscriptions to the Fund on behalf of a minor, of whom he is the guardian, shall be entitled to withdraw any amount from the Fund only for the use of the minor.

7. Grant of loans
A subscriber may be granted loans out of the amount standing to his credit in the Fund on such terms and conditions as may be specified in the Scheme and where the subscriber is a minor, such loans shall be granted to his guardian only for the use of the minor.

8. Payment on death of subscriber
(1) If a subscriber dies and there is in force at the time of his death a nomination in favour of any person, all amounts standing to his credit in the Fund shall be payable to the nominee.

(2) Where the nominee is a minor, the amounts referred to in sub-section (1) shall be payable to any guardian of the property of the minor appointed by a competent court, or where no such guardian has been so appointed, to either parent of the minor, or where neither parent is alive, to any other guardian of the minor.

(3) Where there is no nomination in force at the time of the death of the subscriber, the amounts referred to in sub-section (1) shall be payable to his legal heirs.

9. Protection against attachment
The amount standing to the credit of any subscriber in the Fund shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the subscriber.

10. Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or the Scheme.

11. Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act or the Scheme, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of the difficulty:

Provided that no such order shall be made after the expiration of three years from the commencement of this Act.

(2) Every order made under sub-section (1) shall be laid as soon as may be after it is made before each House of Parliament.

12. Scheme to be laid before Parliament
The Scheme shall be laid, as soon as may be, after it is framed before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in any provision of the Scheme or both Houses agree that any provision in the Scheme should not be made, the provision of the Scheme 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 provision.

THE SCHEDULE
[See section 3(2)]

Matters for which provision may be made in the Scheme:-

(1) The manner in which subscriptions to the Fund may be made and the maximum and minimum limits of such subscriptions.

(2) The manner in which interest on subscriptions to the Fund may be calculated.

(3) The documents to be issued to subscribers as evidence of the subscriptions made by them to the Fund.

(4) The extent to which and the terms and conditions under which withdrawals may be made by subscribers from the amount standing to their credit in the Fund.

(5) The authority or authorities by or through whom subscriptions to the Fund may be collected or withdrawals therefrom may be made.

(6) The terms and conditions under which loans may be granted to subscribers out of the amounts standing to their credit in the Fund and the authority or authorities by whom such loans may be granted.

(7) The account to be maintained with respect to subscriptions to the Fund, and withdrawals and final payments made and loans granted therefrom and the authority or authorities by whom such account shall be maintained.

(8) The nomination of any person to receive the amount standing to the credit of a subscriber in the Fund in the event of his death and the cancellation or change of such nomination.

(9) The issue of duplicate of any document issued as evidence of any subscription to the Fund in the event of damage, loss or destruction of the original and the fee on the payment of which such duplicate may be issued..

(10) Any other matter which is to be provided for in the Scheme or which may be necessary or proper for the purpose of implementing the Scheme.

(3) It shall come INTO force on such date as the Central
Government may, by notification in the Official Gazette, appoint.

2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,-

(a) “Fund” means the Beedi Workers Welfare Fund formed under section 3 of the Beedi Workers Welfare Fund Act, 1976.(b) “prescribed” means prescribed by rules made under this
Act.

3[(c) words and expressions used but not defined in this Act and defined in the Central Excises and Salt Act, 1944, shall have, the meanings respectively assigned to them in that
Act."]

3.Levy and collection of cess on manufactured beedis.

4["3. Levy and collection of cess on manufactured beedis. (1)
With effect FROM such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be levied and collected by way of cess for the purposes of the Beedi Workers
Welfare Fund Act, 1976, a duty of excise on manufactured beedis at such rate which shall not be less than ten paise, or more than fifty paise per thousand manufactured beedis, as the Central Government may, FROM time to time, fix by notification in the Official Gazette.

(2) The duty of excise levied under sub-section (1) shall be in addition to any cam or duty leviable on manufactured beedis (whether spelt as such or as biris or in any other manner) under any law for the time being in force.]

———————————————————————-
1. 15.2.1977: Vide Notifn. No. G.S.R. 55 (E), dt. 2.2.1977.2. Subs. by Act 47 of 1981, s.2 (w.e.f. 1.1.1982).

4. Subs by S. 4, ibid.
3. Ins. by s.3, ibid.

———————————————————————-

344.1 ["3A. Application of Act of 1944 to cess. The Provisions of the Central Excises and Salt Act, 1994 or the roles thereunder, including those relating to refunds and exemption FROM duty, as in force FROM time to time, shall so far as may be, apply in relation to the levy-, collection and refund of, or exemption from, cess under this Act, as they apply in relation to the levy, collection and i refund of, or exemption from, duties of excise in respect of manufactured biris under that Act.]

4.Crediting of proceeds of duty to the Consolidated Fund of India.

4. Crediting of proceeds of duty to the Consolidated Fund of
India. The proceeds of the duty of excise levied under sub-section (1)
of section 3 shall be credited to the Consolidated Fund of India.

5.Power to call for information.

5. Power to call for information. The Central Government or any other authority specified by It In this behalf may require any person to furnish, for the purposes of this Mt, such statistical and arty other information as it may think fit,

6.Protection of action taken in good faith.

6. Protection of action taken in good faith. No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer or other. employee of tile, CM* Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

7.Power to make rules.

7. Power to make rules. (1) The Central Government may, by notification In, the Official Gazette, make rules for carrying out the provisions of this Act.

(2) In particular and without prejudice to the generally of the foregoing power, such rules may provide for-

2* * *

(b) the furnishing to the Central Government or any other,authority specified by it in this behalf by any person of such statistical and any other information as may be required to be furnished,under section 5;

(c) any other matter which has to be or may be prescribed, or provided for, by rules under this Act.

———————————————————————

1. Ins. by Act 47 of 1981, S. 5, (w.e.f. 1-1-1982).

2 Omitted by s. 6, ibid.

———————————————————————
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, 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.

1. Short title extent commencement and application. (1) This
Act may be called the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996.(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 1st day of
March, 1996.(4) It applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more buildings workers in any building or other construction work.

2.Explanation.- For the purposes of this sub-section, the buildings workers employed in different relays in a day either by the employer or the contractor shall be taken into account in computing the number of buildings workers employed in the establishment.

2.Definitions.

2. Definitions. (1) In this Act, unless the context otherwise requires,-

(a) “appropriate Government” means,-

(i) in relation to an establishment (which employs building workers either directly or through a contractor) in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14.of 1947), is the Central Government, the Central Government;

(ii) in relation to any such establishment, being a public sector undertaking, as the Central Government may by notification specify which employs building workers either directly or through a contractor, the Central Government;

Explanation.-For the purposes of sub-clause (ii), “public sector undertaking” means any corporation established by or under any
Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act 1956 (1 of 1956), which is owned, controlled or managed by the Central Government;

(iii) in relation to any other establishment which employs building workers either directly or through a contractor, the
Government of the State in which that other establishment is situate;

(b) “beneficiary” means a building worker registered under section 12;

(c) “Board” means a Building and Other Construction Workers
Welfare Board constituted under sub-section (1) of section 18;

(d) “building or other construction work” means the construction, alteration, repairs, maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works
(including channels for distribution of water), oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aqueducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply;

(e) “building worker” means a person who is employed to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed or implied, in connection with any building or other construction work but does not include any such person-

(i) who is employed mainly in a managerial or administrative capacity;

or

(ii) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature;

(f) “Chief Inspector” means the Chief Inspector of Inspection of
Building and Construction appointed under sub-section (2) of section
42;

3.(g) “contractor” means a person who undertakes to produce a given result for any establishment, other than a mere supply of goods or articles of manufacture, by the employment of buildings workers or who supplies buildings workers for any work of the establishment; and includes a sub-contractor;

(h) “Director-General” means the Director-General of Inspection appointed under sub-section (1) of section 42;

(i) “employer”, in relation to an establishment, means the owner thereof, and includes,-

(i) in relation to A building or other construction work carried on by or under the authority of any department of the Government, directly without any contractor, the authority specified in this behalf, or where no authority is specified, the head of the department;

(ii) in relation to a building or other construction work carried on by or on behalf of a local authority or other establishment directly without any contractor, the chief executive officer of that authority or establishment;

(iii) in relation to a building or other construction work carried on by or through a contractor, or by the employment of building workers supplied by a contractor, the contractor,

(j) “establishment” means any establishment belonging to, or under the control of, Government, any body corporate or firm, an individual or association or other body of individuals which or who employs building workers in any building or other construction work;
and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or construction work in relation to his own residence the total cost of such construction not being more than rupees ten lakhs;

(k) “Fund” means the Building and Other Construction Workers
Welfare Fund of a Board constituted under sub-section (1) of section
24;

(l) “notification” means a notification published in the
Official Gazette;

(m) “prescribed” means prescribed by rules made under this Act by the Central Government or, as the case may be, the State
Government;

(n) “wages” shall have the same meaning as assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of
1936).

(2) Any reference in this Act to any law which is not in force in any area shall, in relation to that area, be construed as a reference to the corresponding law, if any, in force in that area.

CHAPTER IITHE ADVISORY COMMITTEES AND EXPERT COMMITTEES

3. Central Advisory Committee. (1) The Central Government shall, as soon as may be, constitute a Committee to be called the
Central Building and Other Construction Workers Advisory Committee
(hereinafter referred to as the Central Advisory Committee) to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it.

(2) The Central Advisory Committee shall consist of-

(a) a Chairperson to be appointed by the Central Government;

(b) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States-members;

(c) the Director-General-member, ex officio;

4.(d) such number of other members, not exceeding thirteen but not less than nine, as the Central Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the Central Government, ought to be represented on the Central Advisory Committee.

(3) The number of persons to be appointed as members from each of the categories specified in clause (d) of sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Advisory Committee shall be such as may be prescribed:

Provided that the members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers.

(4) It is hereby declared that the office of member of the
Central Advisory Committee shall not disqualify its holder for being chosen as, or for being, a Member of either House of Parliament.

4.State Advisory Committee.

4. State Advisory Committee. (1) The State Government shall constitute a committee to be called the State Building and Other
Construction Workers Advisory Committee (hereinafter referred to as the State Advisory Committee) to advise the State Government on such matters arising out of the administration of this act as may be referred to it.

(2) The State Advisory Committee shall consist of-

(a) a Chairperson to be appointed by the State Government;

(b) two members of the State Legislature to be elected from the
State Legislature members;

(c) a member to be nominated by the Central Government;

(d) the Chief Inspector-member, ex officio;

(e) such number of other members, not exceeding eleven” but not less than seven, as the State Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the State Government, ought to be represented on the State
Advisory Committee.

(3) The number of persons to be appointed as members from each of the categories specified in clause (e) of sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of State Advisory Committee shall be such as may be prescribed:

Provided that the number of members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers.

5.Expert Committees.

5. Expert Committees. (1) The appropriate Government may constitute one or more expert committees consisting of persons specially qualified in building or other construction work for advis-
ing that Government for making rules under this Act.

(2) The members of the export committee shall be paid such fees and allowances for attending the meetings of the committee as may be prescribed:

Provided that no fee or allowances shall be payable to a member who is in officer of Government or of any body corporate established by or under any law for the time being in force.

CHAPTER IIIREGISTRATION OF ESTABLISHMENTS

6. Appointment of registering officers. The appropriate
Government may, by order notified in the Official Gazette,-

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit, to be the registering officers for the purposes of this Act; and

(b) define the limits within which a registering officer shall exercise the powers conferred on him by or under this Act.

7.Registration of establishments.

7. Registration of establishments. (1) Every employer shall,-

(a) in relation to an establishment to which this Act applies on its commencement, within a period of sixty days from such commencement; and

(b) in relation to any other establishment to which this Act may be applicable at any time after such commencement, within a period of sixty days from the date on which this Act becomes applicable to such establishment,

make an application to the registering officer for the registration of such establishment:

Provided that the registering officer may entertain any such application after the expiry of the periods aforesaid, if he is satisfied that the applicant was prevented by sufficient cause from making the application within such period.

(2) Every application under sub-section (1) shall be in such form and shall contain such particulars and shall be accompanied by such fees as may be prescribed.

(3) After the receipt of an application under sub-section (1), the registering officer shall register the establishment and issue a certificate of registration to the employer thereof in such form and within such time and subject to such conditions as may be prescribed.

(4) Where, after the registration of an establishment under this section, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such change shall be intimated by the employer to the registering officer within thirty days of such change in such form as may be prescribed.

8.Revocation of registration in certain cases.

8. Revocation of registration in certain cases. If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact or that the provisions of this Act are not being complied with in relation to any work carried on by such establishment, or that for any other reason the registration has become useless or ineffective and, therefore, requires to be revoked, he may, after giving an opportunity to the employer of the establishment to be heard, revoke the registration.

9.Appeal.

9. Appeal. (1) Any person aggrieved by an order made under section 8 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to the appellate officer who shall be a person nominated in this behalf by the appropriate
Government:

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard, confirm, modify or reverse the order of revocation as expeditiously as possible.

10.Effect of non-registration.

10. Effect of non-registration. No employer of an establishment to which this Act applies shall,-

(a) in the case of an establishment required to be registered under section 7, but which has not been registered under that section;

(b) in the case of an establishment the registration in respect of which has been revoked under section 8 and no appeal has been preferred against such order of revocation under section 9 within the period prescribed for the preferring of such appeal or where an appeal has been so preferred, such appeal has been dismissed,

employ building workers in the establishment after the expiry of the period referred to in clause (a) or clause (b) of sub-section (1) of section 7, or after the revocation of registration

6.under section 8 or after the expiry of the period for preferring an appeal under section 9 or after the dismissal of the appeal, as the case may be.

CHAPTER IVREGISTRATION OF BUILDING WORKERS AS BENEFICIARIES

6. Appointment of registering officers. The appropriate
Government may, by order notified in the Official Gazette,-

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit, to be the registering officers for the purposes of this Act; and

(b) define the limits within which a registering officer shall exercise the powers conferred on him by or under this Act.

7.Registration of establishments.

7. Registration of establishments. (1) Every employer shall,-

(a) in relation to an establishment to which this Act applies on its commencement, within a period of sixty days from such commencement; and

(b) in relation to any other establishment to which this Act may be applicable at any time after such commencement, within a period of sixty days from the date on which this Act becomes applicable to such establishment,

make an application to the registering officer for the registration of such establishment:

Provided that the registering officer may entertain any such application after the expiry of the periods aforesaid, if he is satisfied that the applicant was prevented by sufficient cause from making the application within such period.

(2) Every application under sub-section (1) shall be in such form and shall contain such particulars and shall be accompanied by such fees as may be prescribed.

(3) After the receipt of an application under sub-section (1), the registering officer shall register the establishment and issue a certificate of registration to the employer thereof in such form and within such time and subject to such conditions as may be prescribed.

(4) Where, after the registration of an establishment under this section, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such change shall be intimated by the employer to the registering officer within thirty days of such change in such form as may be prescribed.

8.Revocation of registration in certain cases.

8. Revocation of registration in certain cases. If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact or that the provisions of this Act are not being complied with in relation to any work carried on by such establishment, or that for any other reason the registration has become useless or ineffective and, therefore, requires to be revoked, he may, after giving an opportunity to the employer of the establishment to be heard, revoke the registration.

9.Appeal.

9. Appeal. (1) Any person aggrieved by an order made under section 8 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to the appellate officer who shall be a person nominated in this behalf by the appropriate
Government:

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard, confirm, modify or reverse the order of revocation as expeditiously as possible.

10.Effect of non-registration.

10. Effect of non-registration. No employer of an establishment to which this Act applies shall,-

(a) in the case of an establishment required to be registered under section 7, but which has not been registered under that section;

(b) in the case of an establishment the registration in respect of which has been revoked under section 8 and no appeal has been preferred against such order of revocation under section 9 within the period prescribed for the preferring of such appeal or where an appeal has been so preferred, such appeal has been dismissed,

employ building workers in the establishment after the expiry of the period referred to in clause (a) or clause (b) of sub-section (1) of section 7, or after the revocation of registration

6.under section 8 or after the expiry of the period for preferring an appeal under section 9 or after the dismissal of the appeal, as the case may be.

CHAPTER VBUILDING AND OTHER CONSTRUCTION WORKERS WELFARE BOARDS

18. Constitution of State Welfare Boards. (1) Every State
Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the (name of the State) Building and Other Construction Workers Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it under this Act.

(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued.

(3) The Board shall consist of a chairperson, a person to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State
Government:

Provided that the Board shall include an equal number of members representing the State Government, the employers and the building workers and that at least one member of the Board shall be a woman.

(4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Board, and the

8.manner of filling of casual vacancies of the members of the Board, shall be such as may be prescribed.

19.Secretary and of Boards.

19. Secretary and of Boards. (1) The Board shall appoint a
Secretary and such other officers and employees as it considers necessary for the efficient discharge of its functions under this Act.

(2) The Secretary of the Board shall be its chief executive officer.

(3) The terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the Board shall be such as may be prescribed.

20.Meetings of Boards.

20. Meetings of Boards. (1) The Board shall meet at such time and place and observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed.

(2) The chairperson or, if for any reason he is unable to attend a meeting of the Board, any member nominated by the chairperson in this behalf and in the absence of such nomination, any other member elected by the members present from amongst themselves at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the members present and voting, and in the event of equality of votes, the chairperson, or in his absence, the person presiding, shall have a second or a casting vote.

21.Vacancies, etc., not to invalidate proceedings of the Boards.

21. Vacancies, etc., not to invalidate proceedings of the
Boards. No act or proceedings of a Board shall be invalid merely by reason of-

(a) any vacancy in, or any defect in the constitution of, the
Board;

or

(b) any defect in the appointment of a person acting as a member of the Board;

or

(c) any irregularity in the procedure of the Board not affecting the merits of the case.

22.Functions of the Boards.

22. Functions of the Boards. (1) The Board may-

(a) provide immediate assistance to a beneficiary in case of accident;

(b) make payment of pension to the beneficiaries who have completed the age of sixty years;

(c) sanction loans and advances to a beneficiary for construction of a house not exceeding such amount and on such terms and conditions as may be prescribed;

(d) pay such amount in connection with premia for Group
Insurance Scheme of the beneficiaries as it may deem fit;

(e) give such financial assistance for the education of children of the beneficiaries as may be prescribed;

(f) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed;

(g) make payment of maternity benefit to the female beneficiaries; and

(h) make provision and improvement of such other welfare measures and facilities as may be prescribed.

(2) The Board may grant loan or subsidy to a local authority or an employer in aid of any scheme approved by the State Government for the purpose connected with the

9.welfare of building workers in any establishment.

(3) The Board may pay annually grants-in-aid to a local authority or to an employer who provides to the satisfaction of the
Board welfare measures and facilities of the standard specified by the
Board for the benefit of the building workers and the members of their family, so, however, that the amount payable as grants-in-aid to any local authority or employer shall not exceed-

(a) the amount spent in providing welfare measures and facilities as determined by the State Government or any person specified by it in this behalf, or

(b) such amount as may be prescribed,

whichever is less:

Provided that no grant-in-aid shall be payable in respect of any such welfare measures and facilities where the amount spent thereon determined as aforesaid is less than the amount prescribed in this behalf.

23.Grants and loans by the Central Government.

23. Grants and loans by the Central Government. The Central
Government may, after due appropriation made by Parliament by law in this behalf, make to a Board grants and loans of such sums of money as the Government may consider necessary.

24.Building and Other Construction Workers Welfare Fund and its application.

24. Building and Other Construction Workers Welfare Fund and its application. (1) There shall be constituted by a Board a fund to be called the Building and Other Construction Workers Welfare Fund and there shall be credited thereto-

(a) any grants and loans made to the Board by the Central
Government under section 23;

(b) all contributions made by the beneficiaries;

(c) all sums received by the Board from such other sources as may be decided by the Central Government.

(2) The Fund shall be applied for meeting-

(a) expenses of the Board in the discharge of its functions under section 22; and

(b) salaries, allowances and other remuneration of the members, officers and other employees of the Board;

(c) expenses on objects and for purposes authorised by this Act.

(3) No Board shall, in any financial year, incur expenses towards salaries, allowances and other remuneration to its members, officers and other employees and for meeting the other administrative expenses exceeding five per cent. of its total expenses during that financial year.

25.Budget.

25. Budget. The Board shall prepare, in such form and at such time each financial year, as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the State Government and the Central
Government.

26.Annual report.

26. Annual report. The Board shall prepare, in such form and at such time each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the State Government and the Cen-
tral Government.

27.Accounts and audit.

27. Accounts and audit. (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the
Comptroller and Auditor-General of India.

10.(2) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the auditing of the accounts of the Board under this Act shall have the same rights and privileges and the authority in connection with such audit as the
Comptroller and Auditor-General of India has in connection with the auditing of the Government accounts and, in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board under this Act.

(3) The accounts of the Board shall be audited by the
Comptroller and Auditor-General of India annually and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.

(4) The Board shall furnish to the State Government before such date as may be prescribed its audited copy of accounts together with the auditors report.

(5) The State Government shall cause the annual report and auditors report to be laid, as soon as may be after they are received, before the State Legislature.

CHAPTER VIHOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS

28. Fixing hours for normal working day, etc. (1) The appropriate Government may, by rules,-

(a) fix the number of hours of work which shall constitute a normal working day for a building worker, inclusive of one or more specified intervals;

(b) provide for a day of rest in every period of seven days which shall be allowed to all building workers and for the payment of remuneration in respect of such days of rest;

(c) provide for payment of work on a day of rest at a rate not less than the overtime rate specified in section 29.(2) The provisions of sub-section (1) shall, in relation to the following classes of building workers, apply only to such extent, and subject to such conditions, as may be prescribed, namely:-

(a) persons engaged on urgent work, or in any emergency which could not have been foreseen or prevented;

(b) persons engaged in a work in the nature of preparatory or complementary work which must necessarily be carried on outside the normal hours of work laid down in the rules;

(c) persons engaged in any work which for technical reasons has to be completed before the day is over;

(d) persons engaged in a work which could not be carried on except at times dependant on the irregular action of natural forces.

29.Wages for overtime work.

29. Wages for overtime work. (1) Where any building worker is required to work on any day in excess of the number of hours constituting a normal working day, he shall be entitled to wages at the rate of twice his ordinary rate of wages.

(2) For the purposes of this section, “ordinary rates of wages”
means the basic wages plus such allowances as the worker is for the time being entitled to but does not include any bonus.

11.30.

Maintenance of registers and records.

30. Maintenance of registers and records. (1) Every employer shall maintain such registers and records giving such particulars of building workers employed by him, the work performed by them, the number of hours of work which shall constitute a normal working day for them, a day of rest in every period of seven days which shall be allowed to them, the wages paid to them, the receipts given by them and such other particulars in such form as may be prescribed.

(2) Every employer shall keep exhibited, in such manner as may be prescribed, in the place where such workers may be employed, notices in the prescribed form containing the prescribed particulars.

(3) The appropriate Government may, by rules, provide for the issue of wage books or wage slips to building workers employed in an establishment and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent.

31.Prohibition of employment of certain persons in certain buildings or other construction work.

31. Prohibition of employment of certain persons in certain buildings or other construction work. No person about whom the employer knows or has reason to believe that he is a deaf or he has a defective vision or he has a tendency to giddiness shall be required or allowed to work in any such operation of building or other construction work which is likely to involve a risk of any accident either to the building worker himself or to any other person.

32.Drinking water.

32. Drinking water. (1) The employer shall make in every place where building or other construction work is in progress, effective arrangements to provide and maintain at suitable points conveniently situated for all persons employed therein, a sufficient supply of wholesome drinking water.

(2) All such points shall be legibly marked “Drinking Water” in a language understood by a majority of the persons employed in such place and no such point shall be situated within six metres of any washing place, urinal or latrine.

33.Latrines and urinals.

33. Latrines and urinals. In every place where building or other construction work is carried on, the employer shall provide sufficient latrine and urinal accommodation of such types as may be prescribed and they shall be so conveniently situated as may be accessible to the building workers at all times while they are in such place:

Provided that it shall not be necessary to provide separate urinals in any place where less than fifty persons are employed or where the latrines are connected to a water-borne sewage system.

34.Accommodation.

34. Accommodation. (1) The employer shall provide, free of charges and within the work site or as near to it as may be possible, temporary living accommodation to all building workers employed by him for such period as the building or other construction work is in progress.

(2) The temporary accommodation provided under sub-section (1)
shall have separate cooking place, bathing, washing and lavatory facilities.

(3) As soon as may be, after the building or other construction work is over, the employer shall, at his own cost, cause removal or demolition of the temporary structures erected by him for the purpose of providing living accommodation, cooking place or other facilities to the building workers as required under sub-section (1) and restore the ground in good level and clean condition.

(4) In case an employer is given any land by a Municipal Board or any other local authority for the purposes of providing temporary accommodation for the building workers under this section, he shall, as soon as may be after the construction work is over, return the possession of such land in the same condition in which he received the same.

12.35.Creches.

35. Creches. (1) In every place wherein, more than fifty female building workers are ordinarily employed, there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such female workers.

(2) Such rooms shall-

(a) provide adequate accommodation;

(b) be adequately lighted and ventilated;

(c) be maintained in a clean and sanitary condition;

(d) be under the charge of women trained in the care of children and infants.

36.First-aid.

36. First-aid. Every employer shall provide in all the places where building or other construction work is carried on such first-aid facilities as may be prescribed.

37.Canteens, etc.

37. Canteens, etc. The appropriate Government may, by rules, require the employer-

(a) to provide and maintain in every place wherein not less than two hundred and fifty building workers are ordinarily employed, a canteen for the use of the workers;

(b) to provide such other welfare measures for the benefit of building workers as may be prescribed.

CHAPTER VIISAFETY AND HEALTH MEASURES

38. Safety Committee and safety officers. (1) In every establishment wherein five hundred or more building workers are ordinarily employed, the employer shall constitute a Safety Committee consisting of such number of representatives of the employer and the building workers as may be prescribed by the State Government:

Provided that the number of persons representing the workers, shall, in no case, be less than the persons representing the employer.

(2) In every establishment referred to in sub-section (1), the employer shall also appoint a safety officer who shall possess such qualifications and perform such duties as may be prescribed.

39.Notice of certain accidents.

39. Notice of certain accidents. (1) Where in any establishment an accident occurs which causes death or which causes any bodily injury by reason of which the person injured is prevented from working for a period of forty-eight hours or more immediately following the accident, or which is of such a nature as may be prescribed, the employer shall give notice thereof to such authority, in such form and within such time as may be prescribed.

(2) On receipt of a notice under sub-section (1) the authority referred to in that subsection may make such investigation or inquiry as it considers necessary.

(3) Where a notice given under sub-section (1) relates to an accident causing death of five or more persons, the authority shall make an inquiry into such accident within one month of the receipt of the notice.

40.

Power of appropriate Government to make rules for the safety and health of buildings workers.

40. Power of appropriate Government to make rules for the safety and health of buildings workers. (1) The appropriate Government may, by notification, make rules regarding the measures to be taken for the safety and health of building workers in the course of their employment and the equipment and appliances necessary to be provided to them for ensuring their safety, health and protection, during such employment.

(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:-

13.(a) the safe means of access to, and the safety of, any working place, including the provision of suitable and sufficient scaffolding at various stages when work cannot be safely done from the ground or from any part of a building or from a ladder or such other means of support;

(b) the precautions to be taken in connection with the demolition of the whole or any substantial part of a building or other structure under the supervision of a competent person and the avoidance of danger from collapse of any building or other structure while removing any part of the framed building or other structure by shoring or otherwise;

(c) the handling or use of explosive under the control of competent persons so that there is no exposure to the risk of injury from explosion or from flying material;

(d) the erection, installation, use and maintenance of transporting equipment, such as locomotives, trucks, wagons and other vehicles and trailers and appointment of competent persons to drive or operate such equipment;

(e) the erection, installation, use and maintenance of hoists, lifting appliances and lifting gear including periodical testing and examination and heat treatment where necessary, precautions to be taken while raising or lowering loads, restrictions on carriage of persons and appointment of competent persons on hoists or other lifting appliances,

(f) the adequate and suitable lighting of every workplace and approach thereto, of every place where raising or lowering operations with the use of hoists, lifting appliances or lifting gears are in progress and of all openings dangerous to building workers employed;

(g) the precautions to be taken to prevent inhalation of dust, fumes, gases or vapours during any grinding, cleaning, spraying or manipulation of any material and steps to be taken to secure and maintain adequate ventilation of every working place or confined space;

(h) the measures to be taken during stacking or unstacking, stowing or unstowing of materials or goods or handling in connection therewith;

(i) the safeguarding of machinery including the fencing of every fly-Wheel and every moving part of a prime mover and every part of transmission or other machinery, unless it is in such a position or of such construction as to be safe to every worker working on any of the operations and as if it were securely fenced;

(j) the safe handling and use of plant, including tools and equipment operated by compressed air;

(k) the precautions to be taken in case of fire;

(l) the limits of weight to be lifted or moved by workers;

(m) the safe transport of workers to or from any workplace by water and provision of means for rescue from drowning;

(n) the steps to be taken to prevent danger to workers from live electric wires or apparatus including electrical machinery and tools and from overhead wires;

(o) the keeping of safety nets, safety sheets and safety belts where the special nature or the circumstances of work render them necessary for the safety of the workers;

(p) the standards to be complied with regard to scaffolding, ladders and stairs, lifting appliances, ropes, chains and accessories, earth moving equipments and floating operational equipments;

14.(q) the precautions to be taken with regard to pile driving, concrete work, work with hot asphalt, tar or other similar things, insulation work, demolition operations, excavation, underground construction and handling materials;

(r) the safety policy, that is to say, a policy relating to steps to be taken to ensure the safety and health of the building workers, the administrative arrangements therefor and the matters connected therewith, to be framed by the employers and contractors for the operation to be carried on in a building or other construction work;

(s) the information to be furnished to the Bureau of Indian
Standards established under the Bureau of Indian Standards Act, 1986.(63 of 1986), regarding the use of any article or process covered under the Act in a buildings or other construction work;

(t) the provision and maintenance of medical facilities for building workers;

(u) any other matter concerning the safety and health of workers working in any of the operations being carried on in a building or other construction work.

41.Framing of model rules for safety measures.

41. Framing of model rules for safety measures. The Central
Government may, after considering the recommendation of the expert committee constituted under section 5, frame model rules in respect of all or any of the matters specified in section 40 and where any such model rules have been framed in respect of any such matter the appropriate Government shall, while making any rules in respect of that matter under section 40, so far as is practicable, conform to such model rules.

CHAPTER VIIIINSPECTING STAFF

42. Appointment of Director-General, Chief Inspector and
Inspectors. (1) The Central Government may, by notification, appoint a
Gazetted Officer of that Government to be the Director-General of
Inspection who shall be responsible for laying down the standards of inspection and shall also exercise the powers of an Inspector throughout India in relation to all the establishments for which the
Central Government is the appropriate Government.

(2) The State Government may, by notification, appoint a
Gazetted Officer of that Government to be the Chief Inspector of
Inspection of Building and Construction who shall also exercise the powers of an Inspector under this Act throughout the State in relation to establishments for which the State Government is the appropriate
Government.

(3) The appropriate Government may, by notification, appoint such number of its officers as it thinks fit to be Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit.

(4) Every Inspector appointed under this section shall be subject to the control of the Director-General or the Chief Inspector, as the case may be, and shall exercise his powers and perform his functions under this Act subject to general control and supervision of the Director-General or the Chief inspector.

(5) The Director-General, the Chief Inspector and every
Inspector shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

43.Power of Inspectors.

43. Power of Inspectors. (1) Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed,-

(a) enter, at all reasonable hours, with such assistants (if any)
being persons in the service of the Government or any local or other public authority as he thinks fit, any premises or place where building or other construction work is carried on, for the purpose of examining any register or record or notices required to be kept or exhibited by or under this Act, and require the production thereof for inspection;

15.(b) examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe is a building worker employed therein;

(c) require any person giving out building or other construction work to any building worker, to give any information which is in his power to give with respect to the names and addresses of the persons to, for and whom the building or other construction work is given out or received, and with respect to the payments to be made for the building or other construction work;

(d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the employer; and

(e) exercise such other powers as may be prescribed.

(2) For the purposes if this section, the Director-General or the chief Inspector, as the case may be, may employ experts or agencies having such qualifications and experience and on such terms and conditions as may be prescribed.

(3) any person required to produce any document or to give my information required by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of section 175.and section 176 of the Indian Penal Code (45 of 1860).

(4) The provisions of the Code of Criminal Procedure, 1973 (2 of
1974), shall, so far as may be, apply to such search or seizure under sub-section (1) as they apply to any search or seizure made under the authority of a warrant issued under section 94 of the said Code.

CHAPTER IXSPECIAL PROVISIONS

44. Responsibility of employers. An employer shall be responsible for providing constant and adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents.

45.Responsibility for payment of wages and compensation.

45. Responsibility for payment of wages and compensation. (1)
An employer shall be responsible for payment of wages to each building worker employed by him and such wages shall be paid on or before such date as may be prescribed.

(2) In case the contractor fails to make payment of compensation in respect of a building worker employed by him, where he is liable to make such payment when due, or makes short payment thereof, then in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Workmens compensation Act 1923 (8 of 1923), and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

46.Notice of commencement of building or other construction work.

46. Notice of commencement of building or other construction work. (1) An employer shall, at least thirty days before the commencement of any building or other construction work, send or cause to be sent to the Inspector having jurisdiction in the area where the proposed building or other construction work is to be executed, a written notice containing-

(a) the name and situation of the place where the buildings or other construction work is proposed to be carried on;

(b) the name and address of the person who is undertaking the building or other construction work;

(c) the address to which communications relating to the building or other construction work may be sent;

16.(d) the nature of the work involved and the facilities, including any plant and machinery, provided;

(e) the arrangements for the storage of explosives, if any, to be used in the building or other construction work,

(f) the, number of workers likely to be employed during the various stages of building or other construction work;

(g) the name and designation of the person who will be in overall charge of the building or other construction work at the site;

(h) the approximate duration of the work;

(i) such other matters as may be prescribed.

(2) Where any change occurs in any of the particulars furnished under sub-section (1), the employer shall intimate the change to the
Inspector within two days of such change.

(3) Nothing contained in sub-section (1) shall apply in case of such class of building or other construction work as the appropriate
Government may by notification specify to be emergent works.

CHAPTER XPENALTIES AND PROCEDURE

47. Penalty for contravention of provisions regarding safety measures. (1) Whoever contravenes the provisions of any rules made under section 40 shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two thousand rupees, or with both, and in the case of a continuing contravention, with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

(2) If any person who has been convicted of any offence punishable under subsection (1) is again guilty of an offence involving a contravention or failure of compliance of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term which may extend to six months or with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees or with both:

Provided that for the purposes of this sub-section, no cognizance shall be taken of any conviction made more than two years before the commission of the offence for which the person is subsequently being convicted:

Provided further that the authority imposing the penalty, if it is satisfied that there are exceptional circumstances warranting such a course may, after recording its reasons in writing, impose a fine of less than five hundred rupees.

48.Penalty for failure to give notice of the commencement of the building or other construction work.

48. Penalty for failure to give notice of the commencement of the building or other construction work. Where an employer fails to give notice of the commencement of the building or other construction work under section 46, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may “tend to two thousand rupees, or with both.

49.Penalty for obstructions.

49. Penalty for obstructions. (1) Whoever obstructs an
Inspector in the discharge of his duties under this Act or refuses or wilfully neglects to afford the Inspector any reasonable facility for making any inspection, examination, inquiry or investigation authorised by or under this Act in

17.relation to an establishment shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both.

(2) Whoever wilfully refuses to produce on the demand of an
Inspector any register or other document kept in pursuance of this Act or prevents or attempts to prevent or does anything which he has reason to believe is likely to prevent any person from appearing before, or being examined by, an Inspector acting in pursuance of his duties under this Act shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both.

50.

Penalty for other offences.

50. Penalty for other offences. (1) Whoever contravenes any other provision of this Act or any rules made thereunder or who fails to comply with any provision of this Act or any rules made thereunder shall, where no express penalty is elsewhere provided for such contravention or failure, be punishable with fine which may extend to one thousand rupees for every such contravention or failure, as the case may be, and in the case of a continuing contravention or failure, as the case may be, with an additional fine which may extend to one hundred rupees for every day during which such contravention or failure continues after the conviction for the first such contravention or failure.

(2) A penalty under sub-section (1) may be imposed-

(a) by the Director-General where the contravention or failure relates to a matter to which the appropriate Government is the
Central Government; and

(b) by the Chief Inspector where the contravention or failure relates to a matter to which the appropriate Government is the State
Government.

(3) No penalty shall be imposed unless the person concerned is given a notice, in writing-

(a) informing him of the grounds on which it is proposed to impose a penalty; and

(b) giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the imposition of penalty mentioned therein, and, if he so desires, of being heard in the matter.

(4) Without prejudice to any other provision contained in this
Act, the Director- General and the Chief Inspector shall have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of
1908), while exercising any powers under this section, in respect of the following matters, namely:-

(a) summoning and enforcing the attendance of witnesses;

(b) requiring the discovery and production of any document;

(c) requisitioning any public record, or copy thereof from any court or office;

(d) receiving evidence on affidavits; and

(e) issuing commissions for the examination of witnesses or documents.

(5) Nothing contained in this section shall be construed to prevent the person concerned from being prosecuted under any other provision of this Act or any other law for any offence made punishable by this Act or by that other law, as the case may be, or for being liable under this Act or any such law to any other or higher penalty or punishment than is provided for such offence by this section:

Provided that no person shall be punished twice for the same offence.

18.51.Appeal.

51. Appeal. Any person aggrieved by the imposition of any penalty under section 50 may prefer an appeal-

(a) where the penalty has been imposed by the Director-General, to the Central Government;

(b) where the penalty has been imposed by the Chief Inspector, to the State Government, imposition of such penalty:

Provided that the Central Government or the State Government, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring an appeal within the aforesaid period of three months, allow such appeal to be preferred within a further period of three months.

(2) The appellate authority may, after giving the appellant an opportunity of being heard, if he so desires, and after making such further inquiry, if any, as it may consider necessary, pass such order as it thinks fit confirming, modifying or reversing the order appealed against or may send back the case with such directions as it may think fit for a fresh decision.

52.Recovery of penalty.

52. Recovery of penalty. Where any penalty imposed on any person under section 50 is not paid,-

(i) the Director-General or, as the case may be, the Chief Inspector may deduct the amount so payable from any money owing to such person which may be under his control; or

(ii) the Director-General or, as the case may be, the Chief Inspector may recover the amount so payable by detaining or selling the goods belonging to such person which are under his control; or

(iii) if the amount cannot be recovered from such person in the manner provided in clause (i) or clause (ii), the Director-General or, as the case may be, the Chief Inspector may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business and the said Collector, on receipt of such certificate shall proceed, to recover from such person the amount specified thereunder as if it were an arrear of land revenue.

53.Offences by companies.

53. Offences by companies. (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

19.54.Cognizance of offences.

54. Cognizance of offences. (1) No court shall take cognizance of any offence punishable under this Act except on a complaint-

(a) made by, or with the previous sanction in writing of, the
Director-General or the Chief Inspector; or

(b) made by an office-bearer of a voluntary organisation registered under the Societies Registration Act, 1860 (21 of
1860); or

(c) made by an office-bearer of any concerned trade union registered under the Trade Unions Act, 1926 (16 of 1926).

(2) No court inferior to that of a Metropolitan Magistrate or a
Judicial Magistrate of the first class shall try any offence punishable under this Act.

55.Limitation of prosecutions.

55. Limitation of prosecutions. No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of the Director-
General, the Chief Inspector, an office-bearer of a voluntary
Organisation or, as the case may be, an office-bearer of any concerned trade union.

CHAPTER XIMISCELLANEOUS

56. Delegation of powers. A Board may, by general or special order, delegate to the Chairperson or any other member or to the
Secretary or any other officer or employee of the Board, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and duties under this Act as it may deem necessary.

57.Returns.

57. Returns. Every Board shall furnish from time to time to the
Central Government and to the State Government such returns as they may require.

58.Application of Act 8 of 1923 to building workers.

58. Application of Act 8 of 1923 to building workers. The provisions of the Workmens Compensation Act, 1923, shall so far as may be, apply to building workers as if the employment to which this
Act applies had been included in the Second Schedule to that Act.

59.Protection of action taken in good faith.

59. Protection of action taken in good faith. (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

(2) No prosecution or other legal proceeding shall lie against the Government, any Board or Committees constituted under this Act or any member of such Board or any officer or employee of the Government or the Board or any other person authorised by the Government or any
Board or Committee, for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made or issued thereunder.

60.

Power of Government to give direction.

60. Power of Government to give direction. The Central
Government may give directions to the Government of any State or to a
Board as to the carrying into execution in that State of any of the provisions of this Act.

61.Power to remove difficulties.

61. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of two years from the date of commencement of this Act.

20.(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

62.Power to make rules.

62. Power to make rules. (1) The appropriate Government may, after consultation with the expert committee, by notification, make rules for carrying out the provisions of this Act.

(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 number of persons to be appointed as members representing various interests on the Central Advisory Committee and the State
Advisory Committees, the term of their office and other conditions of service, the procedure to be followed in the discharge of their functions and the manner of filling vacancies under sub-section (3) of section 3 or, as the case may be, under sub-section (3) of section 4;

(b) the fees and allowances that may be paid to the members of the expert committee for attending its meetings under sub-section
(2) of section 5;

(c) the form of application for the registration of an establishment, the levy of fees therefore and the particulars it may contain under sub-section (2) of section 7;

(d) the form of certificate of registration, the time within which and the conditions subject to which such certificate may be issued under sub-section (3) of section 7;

(e) the form in which the change in ownership or management or other particulars shall be intimated to the registering officer under sub-section (4) of section 7;

(f) the form in which an application for registration as a beneficiary shall be made under sub-section (2) of section 12;

(g) the document and the fee which shall accompany the application under subsection (3) of section 12;

(h) the registers which the Secretary of the Board shall cause to be maintained under sub-section (6) of section 12;

(i) the benefits which may be given under sub-section (2) of section 14;

(j) the form in which register of beneficiaries shall be maintained under section 15;

(k) the terms and conditions of appointment, the salaries and other allowances payable to, and the manner of filling of casual vacancies of, the Chairperson and other members of the Board under sub-section (4) of section 18;

(l) the terms and conditions of service and the salaries and allowances payable to the Secretary and the other officers and employees of the Board under subsection (3) of section 19;

(m) the time and place, of the meeting of the Board and the rules of procedure to be followed at such meeting under sub-section
(1) of section 20 including quorum necessary for the transaction of business;

(n) the amount payable as house building loans or advances, the terms and conditions of such payment under clause (c), educational assistance under clause (e), medical expenses payable and the persons who shall be the dependent of the beneficiaries under clause (f), and the other welfare measures for which provision may be made under clause (h), of sub-section (1) of section 22;

(o) the limits of grants-in-aid payable to the local authorities and employers under clause (b) of sub-section (3) of section 22;

21.(p) the form in which and the time within which the budget of the Board shall be prepared and forwarded to Government under section
25;

(q) the form in which and the time within which the annual report of the Board shall be submitted to the State Government and the
Central Government under section 26;

(r) the form of annual statement of accounts under sub-section
(1), and the date before which the audited copy of the accounts together with the auditors report shall be furnished under sub-
section (4), of section 27;

(s) the matters required to be provided under sub-section (1) of section 28 and the extent up to which, and the conditions subject to which, the provisions of that subsection shall apply to the building workers under sub-section (2) of that section;

(t) the registers and records that shall be maintained by the employer and the form in which such registers and records shall be maintained and the particulars to be included therein under sub-
section (1) of section 30;

(u) the form and manner in which a notice shall be exhibited and the particulars it may contain under sub-section (2) of section 30;

(v) the issue of wage books or wage slips to building workers and the manner in which entries are to be made and authenticated in wage books or wage slips under sub-section (3) of section 30;

(w) the types of latrines and urinals required to be provided under section 33;

(x) the first-aid facilities which are to be provided under section 36;

(y) the canteen facilities which are to be provided under clause
(a) of section 37;

(z) the welfare measures which are to be provided under clause
(b) of section 37;

(za) the number of representatives of the employer and the building workers under sub-section (1) of section 38 and the qualifications of safety officers and the duties to be performed by them under sub-section (2) of that section;

(zb) the form of a notice of accident, other matters to be provided in this behalf and the time within which such notice shall be given under sub-section (1) of section 39;

(zc) the rules to be made for the safety and health of building workers under section 40;

(zd) the powers that may be exercised by an Inspector under clause (e) of subsection (1) of section 43 and the qualifications and experience which the experts or agencies employed under sub-section
(2) of that section shall possess and the terms and conditions on which such experts or agencies may be employed;

(ze) the date on or before which wages shall be paid to a building worker under section 45;

(zf) the matters which are required to be prescribed under clause
(i) of subsection (1) of section 46;

(zg) any other matter which is required to be, or may be, prescribed.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, 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 session, and if, before the expiry of the session immediately following the session or the successive session aforesaid, both Houses agree in making any modification in the rule or

22.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.

(4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the
State Legislature where it consists of two Houses, or, where such
Legislature consists of one House, before that House

63.Saving of certain laws.

63. Saving of certain laws. Nothing contained in this Act shall affect the operation of any corresponding law in a State providing welfare schemes which are more beneficial to the building and other construction workers than those provided for them by or under this
Act.

64.Repeal and saving.

64. Repeal and saving. (1) The Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Third
Ordinance, 1996 (Ord. 25 of 1996), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

K. L. MOHANPURIA, Secy. to the Govt. of India.

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THE BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT, 1996.ACT NO. 28 OF 1996.[19th August, 1996]

BE it enacted by Parliament in the Forty-seventh Year of the
Republic of India as follows:-

An act to provide for the levy. and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building and Other Construction Workers
Welfare
Boards constituted under the Building and Other Construction
Workers
(Regulation of Employment and Conditions of Service) Act, 1996.
1.Short title, extent and commencement.

1. Short title, extent and commencement. (1) This Act may be called the Building and Other Construction Workers Welfare Cess Act,
1996.(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 3rd day of
November, 1995.2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,-

(a) “Board” means a Building and Other Construction Workers
Welfare Board constituted by a State Government under sub-section (1)
of section 18 of the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996;

(b) “Fund” means the Building and Other Construction Workers
Welfare Fund constituted by a Board;

(c) “prescribed” means prescribed by rules made under this Act;

2.(d) words and expressions used herein but not defined and defined in the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 shall have the meanings respectively assigned to them in that Act.

3.Levy and collection of cess.

3. Levy and collection of cess. (1) There shall be levied and collected a cess for the purposes of the Building and Other
Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996, at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification in the
Official Gazette, from time to time specify.

(2) The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed.

(3) The proceeds of the cess collected under sub-section (2)
shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one per cent. of the amount collected.

(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved.

4.Furnishing of returns.

4. Furnishing of returns. (1) Every employer shall furnish such return to such officer or authority, in such manner and at such time as may be prescribed.

(2) If any person carrying on the building or other construction work, liable to pay the cess under section 3, falls to furnish any return under sub-section (1), the officer or the authority shall give a notice requiring such person to furnish such return before such date as may be specified. in the notice.

5.Assessment of cess.

5. Assessment of cess. (1) The officer or authority to whom or to which the return has been furnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit and after satisfying himself or itself that the particulars stated in the return are correct, by order, assess the amount of cess payable by the employer.

(2) If the return has not been furnished to the officer or authority under sub-section (2) of section 4, be or it shall, after making or causing to be made such inquiry as he or it thinks fit, by order, assess the amount of cess payable by the employer.

(3) An order of assessment made under sub-section (1) or sub-
section (2) shall specify the date within which the cess shall be paid by the employer.

6.Power to exempt.

6. Power to exempt. Notwithstanding anything contained in this
Act, the Central Government may, by notification in the Official
Gazette, exempt any employer or class of employers in a State from the payment of cess payable under this Act where such cess is already levied and payable under any corresponding law in force in that State.

3.7.Power of entry.

7. Power of entry. Any officer or authority of the State
Government specially empowered in this behalf by that Government may-

(a) with such assistance, if any, as he or it may think fit, enter at any reasonable time any place where he or it considers it necessary to enter for carrying out the purposes of this Act including verification of the correctness of any particulars furnished by any employer under section 4;

(b) do within such place anything necessary for the proper discharge, of his or its duties under this Act;
and

(c) exercise such other powers as may be prescribed.

8.Interest payable on delay in payment of cess.

8. Interest payable on delay in payment of cess. If any employer fails to pay any amount of cess payable under section 3.within the time specified in the order of assessment, such employer shall be liable to pay interest on the amount to be paid at the rate of two per cent. for every month or part of a month comprised in the period from the date on which such payment is due tilt such amount is actually paid.

9.Penalty for non-payment of cess within the specified time.

9. Penalty for non-payment of cess within the specified time.
If any amount of cess payable by any employer under section 3 is not paid within the date specified in the order of assessment made under section 5, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:

Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.

10.Recovery of amount due under the Act.

10. Recovery of amount due under the Act. Any amount due under this Act (including any interest or penalty) from an employer may be recovered in the same manner as an arrear of land revenue.

11.Appeals.

11. Appeals. (1) Any employer aggrieved by an order of assessment made under section 5 or by an order imposing penalty made under section 9 may, within such time as may be prescribed, appeal to such appellate authority in such form and in such manner as may be prescribed.

(2) Every appeal preferred under sub-section (1) shall be accompanied by such fees as may be prescribed.

(3) After the receipt of any appeal under sub-section (1), the appellate authority shall, after giving the appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible.

(4) Every order passed in appeal under this section shall be final and shall not be called in question in any court of law.

12.Penalty.

12. Penalty. (1) Whoever, being under. an obligation to furnish a return under this Act, furnishes any return knowing, or having reason to believe, the same to be false shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

(2) Whoever, being liable to pay cess under this Act, wilfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months, or with fine, or with both.

(3) No court shall take cognizance of an offence punishable under this section save on a complaint made by or under the authority of the Central Government.

13.Offences by companies.

13. Offences by companies. (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

4.Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

14.Power to make rules.

14. Power to make rules. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the manner in which and the time within which the cess shall be collected under sub-section (2) of section 3;

(b) the rate or rates of advance cess leviable under sub-section
(4) of section 3;

(c) the particulars of the returns to be furnished, the officer or authority to whom or to which such returns shall be furnished and the manner and time of furnishing such returns under sub-section (1)
of section 4;

(d) the powers which may be exercised by the officer or authority under section 7;

(e) the authority which may impose penalty under section 9;

(f) the authority to which an appeal may be filed under sub-
section (1) of section 11 and the time within which and the form and manner in which such appeal may be filed;

(g) the fees which shall accompany an appeal under sub-section
(2) of section 11; and

(h) any other matter which has to be, or may be, prescribed.

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, 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.

15.Repeal and saving.

15. Repeal and saving. (1) The Building and Other Construction
Workers Welfare Cess Third Ordinance, 1996 (Ord. 26 of 1996), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

PRELIMINARY

1.Short title, extent and commencement.- (1) This Act may be called the Child Labour (Prohibition and Regulation) Act, 1986.

(2) It extends to the whole of India.

(3) The provisions of this Act, other than Part III, shall come into force at once, and Part III shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different States and for different classes of establishments.

2.Definitions.- In this Act, unless the context otherwise requires,-

(i) appropriate Government means, in relation to an establishment under the control of the Central Government or a railway administration or a major port or a mine or oilfield, the Central Government, and in all other cases, the State Government;

(ii) child means a person who has not completed his fourteenth year of age;

(iii) day means a period of twenty-four hours beginning at mid-night;

(iv) establishment includes a shop, commercial establishment, workshop, farm, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment;

(v) family, in relation to an occupier, means the individual, the wife or husband, as the case may be, of such individual, and their children, brother or sister of such individual,

(vi) occupier, in relation to an establishment or a workshop, means the person who has the ultimate control over the affairs of the establishment or workshop;

(vii) port authority means any authority administering a port;

(viii) prescribed means prescribed by rules made under section 18;

(ix) week means a period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the Inspector;

(x) workshop means any premises (including the precincts thereof) wherein any industrial process is carried on, but does not include any premises to which the provisions of section 67 of the Factories Act, 1948(63 of 1948), for the time being, apply.
PART IIPROHIBITION OF EMPLOYMENT OF CHILDREN IN CERTAIN OCCUPATIONS AND PROCESSES

3.Prohibition of employment of children in certain occupations and processes.- No child shall be employed or permitted to work in any of the occupations set forth in Part A of the Schedule or in any workshop wherein any of the processes set forth in Part B of the Schedule is carried on:

Provided that nothing in this section shall apply to any workshop wherein any process is carried on by the occupier with the aid of his family or to any school established by, or receiving assistance or recognition from, Government.

4.Power to amend the Schedule.- The Central Government, after giving by notification in the Official Gazette, not less than three months notice of its intention so to do, may, by like notification, add any occupation or process to the Schedule and thereupon the Schedule shall be deemed to have been amended accordingly.

5.Child Labour Technical Advisory Committee.- (1) The Central Government may, by notification in the Official Gazette, constitute an advisory committee to be called the Child Labour Technical Advisory Committee (hereafter in this section referred to as the Committee) to advise the Central Government for the purpose of addition of occupations and processes to the Schedule.

(2) The Committee shall consist of a Chairman and such other members not exceeding ten, as may be appointed by the Central Government.

(3) The Committee shall meet as often as it may consider necessary and shall have power to regulate its own procedure.

(4) The Committee may, if it deems it necessary so to do, constitute one or more sub-committees and may appoint to any such sub-committee, whether generally or for the consideration of any particular matter, any person who is not a member of the Committee.

(5) The term of office of, the manner of filling casual vacancies in the office of, and the allowances, if any, payable to, the Chairman and other members of the Committee, and the conditions and restrictions subject to which the Committee may appoint any person who is not a member of the Committee as a member of any of its sub-committees shall be such as may be prescribed.

PART III –

REGULATION OF CONDITIONS OF WORK OF CHILDREN

6.Application of Part.- The provisions of this Part shall apply to an establishment or a class of establishment in which none of the occupations or processes referred to in section 3 is carried on.

7.Hours and period of work.- (1) No child shall be required or permitted to work in any establishment in excess of such number of hours as may prescribed for such establishment or class of establishments.

(2) The period of work on each day shall be so fixed that no period shall exceed three hours and that no child shall work for more than three hours before he has had an interval for rest for at least one hour.

(3) The period of work of a child shall b so arranged that inclusive of his interval for rest, under sub-section (2), it shall not be spread over more than six hours, including the time spent in waiting for work on any day.

(4) No child shall be permitted or required to work between 7 p.m.and 8 a.m.

(5) No child shall be permitted or required to work overtime.

(6) No child shall be required or permitted to work in any establishment on any day on which be has already been working in another establishment.

8.Weekly holidays.- Every child employed in an establishment shall be allowed in each week, a holiday of one whole day, which day shall be specified by the occupier in a notice permanently exhibited in a conspicuous place in the establishment and the day so specified shall not be altered by the occupier more than once in three months.

9.Notice to inspector.- (1) Every occupier in relation to an establishment in which a child was employed or permitted to work immediately before the date of commencement of this Act in relation to such establishment shall, within a period of thirty days from such commencement, send to the Inspector within whose local limits the establishment is situated, a written notice containing the following particular, s namely:-

(a) the name and situation of the establishment;

(b) the name of the person in actual management of the establishment;

(c) the address to which communications relating to the establishment should be sent; and

(d) the nature of the occupation or process carried on in the establishment.

(2) Every occupier, in relation to an establishment, who employs, or permits to work, any child after the date of commencement of this Act in relation to such establishment, shall, within a period of thirty days from the date of such employment, send to the Inspector within whose local limits the establishment is situated, a written notice containing the particulars as are mentioned in sub-section (1).

Explanation.-For the purposes of sub-sections (1) and (2), date of commencement of this Act, in relation to an establishment means the date of bringing into force of this Act in relation to such establishment.

(3) Nothing in sections 7, 8 and 9 shall apply to any establishment wherein any process is carried on by the occupier with the aid of his family or to any school established by, or receiving assistance or recognition from, Government.

10.Disputes as to age.- If any question arises between an Inspector and an occupier as to the age of any child who is employed or is permitted to work by him in an establishment, the question shall, in the absence of a certificate as to the age of such child granted by the prescribed medical authority, be referred by the Inspector for decision to the prescribed medical authority.

11.Maintenance of registar.- There shall be maintained by every occupier in respect of children employed or permitted to work in any establishment, a register to be available for inspection by an Inspector at all times during working hours or when work is being carried on in any such establishment, showing-

(a) the name and date of birth of every child so employed or permitted to work;

(b) hours and periods of work of any such child and the intervals of rest to which he is entitled;

(c) the nature of work of any such child; and

(d) such other particulars as may be prescribed.

12.Display of notice containing abstract of sections 3 and 14.- Every railway administration every port authority and every occupier shall cause to be displayed in a conspicuous and accessible place at every station on its railway or within the limits of a port or at the place of work, as the case may be, a notice in the local language and in the English language containing an abstract of sections 3 and 14.

13.Health and safety.- (1) The appropriate Government may, by notification in the Official Gazette, make rules for the health and safety of the children employed or permitted to work in any establishment or class of establishments.

(2) Without prejudice to the generality of the foregoing provisions, the said rules may provide for all or any of the following matters, namely:-

(a) cleanliness in the place of work and its freedom from nuisance;

(b) disposal of wastes and effluents;

(c) ventilation and temperature;

(d) dust and fume;

(e) artificial humidification;

(f) lighting;

(g) drinking water;

(h) latrine and urinals;

(i) spittoons;

(j) fencing of machinery;

(k) work at or near machinery in motion;

(l) employment of children on dangerous machines;

(m) instructions, training and supervision in relation to employment of children on dangerous machines;

(n) device for cutting off power;

(o) self-acting machines;

(p) easing of new machinery;

(q) floor, stairs and means of access;

(r) pits, sumps, openings in floors, etc.;

(s) excessive weights;

(t) protection of eyes;

(u) explosive or inflammable dust, gas, etc.;

(v) precautions in case of fire;

(w) maintenance of buildings; and

(x) safety of buildings and machinery.
PART IV –

MISCELLANEOUS

14.Penalties.- (1) Whoever employs any child or permits any child to work in contravention of the provisions of section 3 shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both.

(2) Whoever, having been convicted of an offence under section 3, commits a like offence afterwards, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years.

(3) Whoever-

(a) fails to give notice as required by section 9; or

(b) fails to maintain a register as required by section 11 or makes any false entry in any such register; or

(c) fails to display a notice containing an abstract of section 3 and this section as required by section 12; or

(d) fails to comply with or contravenes any other provisions of this Act or the rules made thereunder.

shall be punishable with simple imprisonment which may extend to one month or with fine which may extend to ten thousand rupees or with both.

(1) Where any person is found guilty and convicted of contravention of any of the provisions mentioned in sub-section (2), he shall be liable to penalties as provided in sub-section (1) and (2) of section 14 of this Act and not under the Acts in which those provisions are contained.

(2) The provisions referred to in sub-section (1) are the provisions mentioned below:-

(a) section 67 of the Factories Act, 1948(63 of 1948)

(b) section 40 of the Mines Act, 1952(35 of 1982)

(c) section 100 of the Merchant Shipping Act, 1958(44 of 1958); and

(d) section 21 of the Motor Transport Workers Act, 1961(27 of 1951).

16.Procedure relating to offences.- (1) Any person, police officer or Inspector may file a complaint of the commission of an offence under this Act in any court of competent jurisdiction.

(2) Every certificate as to the age of a child which has been granted by a prescribed medical authority shall ffifor the purposes of this Act, be conclusive evidence as to the age of the child to whom it relates.

(3) No court inferior to that of a Metropolitan Magistrate or a magistrate of the first class shall try and offence under this Act.

17.Appointment of Inspectors.- The appropriate Government may appoint Inspectors for the purposes of securing compliance with the provisions of this Act and any Inspector so appointed shall be deemed to be a public servant within the meaning of the Indian Penal Code(45 of 1860).

18.Power to make rules.- (1) The appropriate Government may, by notification in the Official Gazette and subject to condition of previous publication, make rules for carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the forgoing power, such rules may provide for all or any of the following matters, namely;-

(a) the term of office of, the manner of filling casual vacancies of, and the allowances payable to the Chairman and members of the Child Labour Technical Advisory Committee and the conditions and restrictions subject to which a non-member may be appointed to a sub-committee under sub-section (5) of section 5;

(b) number of hours for which a child may be required or permitted to work under sub-section (1) of section 7;

(c) grant of certificates of age in respect of young persons in employment or seeking employment, the medical authorities which may issue such certificate, the form of such certificate, the charges which may be made thereunder and the manner in which such certificate may be issued:

Provided that no charge shall be made for the issue of any such certificate if the application is accompanied by evidence of age deemed satisfactory by the authority concerned;

(d) the other particulars which a register maintained under section 11 should contain.

19.Rules and notifications to be laid before Parliament or State legislation.- (1) Every rule made under this Act by the Central Government and every notification issued under section 4, shall be laid, as soon as may be after it is made or issued, before each House of Parliament, 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 notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification 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 or notification.

(2) Every rule made by a State Government under this Act shall be laid as soon as may be after it is made, before the legislature of that State.

20.Certain other provisions of law not barred.-Subject to the provisions contained in section 15, the provisions of this Act and the rules made thereunder shall be in addition to, and not in derogation of, the provisions of the Factories Act, 1948, the Plantations Labour Act, 1951 and the Mines Act, 1952.

21.Power to remove difficulties.- (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removal of the difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the date on which this Act receives the assent of the President.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before the Houses of Parliament.

22.Repeal and savings.- (1) The Employment of Children Act, 1938 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken under the Act so repealed Shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act.

23.Amendment of Act 11 of 1948.- In section 2 of the Minimum Wages Act, 1948,-

(i) for clause (a), the following clauses shall be substituted, namely:-

$(a) adolescent means a person who has completed his fourteenth year of age but has not completed his eighteenth year;

(aa) adult means a person who has completed his eighteenth year of age;$;

(ii) after clause (b), the following clause shall be inserted, namely:-

$(bb) child means a person who has not completed his fourteenth year of age;$.

24.Amendment of Act 69 of 1951.- In the Plantations Labour Act, 1951,-

(a) In section 2, in clauses (a) and (c), for the word fifteenth, the word fourteenth shall be substituted;

(b) section 24 shall be omitted;

(c) in section 26, in the opening portion, the words $who has completed his twelfth year shall be omitted.

25.Amendment of Act 44 of 1958.- In the Merchant Shipping Act, 1958, in section 109, for the word fifteen, the word $fourteen shall be substituted.

26.Amendment of Act 27 of 1961.- In the Motor Transport Workers Act, 1961, in section 2, in clauses (a) and (c), for the word fifteenth, the word fourteenth shall be substituted.

THE SCHEDULE
(See section 3)

PART A

Occupations

Any occupation connected with-

(1) Transport of passengers, goods or mails by railway;

(2) Cinder picking, clearing of an ash pit or building operation in the railway premises;

(3) Work in a catering establishment at a railway station, involving the movement of a vendor or any other employee of the establishment from one platform to another or into or out of a moving train;

(4) Work relating to the construction of a railway station or with any other work where such work is done in close proximity to or between the railway lines;

(5) A port authority within the limits of any port.

PART B

Processes

(1) Bidi-making.

(2) Carpet-weaving.

(3) Cement manufacture, including bagging of cement.

(4) Cloth printing, dyeing and weaving.

(5) manufacture of matches, explosives and fire-works.

(6) Mica-cutting and splitting.

(7) Shellac manufacture.

(8) Soap manufacture.

(9) Tanning.

(10) Wool-cleaning.

(11) Building and construction industry.

HISTORY OF THE LEGISLATION:

A. STATEMENT OF OBJECTS AND REASONS:

There are a number of Acts which prohibit the employment of children below 14 years and 15 years in certain specified employments. However, there is no proceedure laid down in any law for deciding in which employments, occupations or processes the employment of children should be banned. There is also no law to regulate the working conditions of children in most of the employments where they are not prohibited from working and are working under exploitative conditions.

2. This Bill intends to-

(i) ban the employment of children, i.e. those who have not completed their fourteenth year, in specified occupations and processes;

(ii) lay down a procedure to decide modifications to the Schedule of banned occupations or processes;

(iii) regulate the conditions of work of children in employments where they are not prohibited from working;

(iv) lay down enhanced penalties for employment of children in violation of the provisions of this Act, and other Acts which forbid the employment of children;

(v) to obtain uniformity in the definition of $child$ in the related laws.

3. The Bill seeks to achieve the above objects.

B. ACT 61 OF 1986

The Bill, received the assent of THE HON$BLE PRESIDENT on 23rd December, 1986.

An Act to prohibit the engagement of children in certain employments and to regulate the conditions of work of children in certain other employments.

This Act may be called THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986.

It extends to the whole of India.

The provisions of this Act, other than Part III, shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different States and for different classes of establishments.

C. NOTE:

The Child Labour (Prohibition and Regulation) Act, 1986.

S.20 Certain other provisions of law not barred:-

Subject to the provisions contained in section 15, the provisions of this Act and the rules made thereunder shall be in addition to, and not in derogation of, the provisions of the Factories Act, 1948, the Plantations Labour Act, 1951 and the Mines Act, 1952.

S.21 Power to remove the difficulties:-

(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removal of the difficulty.

Provided that no such order shall be made after the expiry of a period of three years from the date on which this Act receives the assent of the President.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before the Houses of Parliament.

D. ACT SCOPE:

The Child Labour (Prohibition and Regulation) Act, 1986.

S.22 Repeal and savings:

(1) The Employment of Children Act, 1938 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken under the Act so repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provions of this Act.

E. DELEGATED LEGISLATION:

I. RULES:

1. THE CHILD LABOUR (PROHIBITION AND REGULATION) RULES, 1988.

(3) This section and sections 2 and 3 shall come into force at once, and the remaining sections of this Act shall come into force on the first day of July, 1933.2.Definitions.

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,–

“an agreement to pledge the labour of a child” means an agreement, written or oral, express or implied, whereby the parent or guardian of a child, in return for any payment or benefit received or to be received by him, undertakes to cause or allow the services of the child to be utilised in any employment:

Provided that an agreement made without detriment to a child, and not made in consideration of any benefit other than reasonable wages to be paid for the childs services, and terminable at not more than a weeks notice, is not an agreement within the meaning of this definition;

“child” means a person who is under the age of fifteen years; and “guardian” includes any person having legal custody of or control over a child.
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1. This Act has been extended to Dadra and Nagar Haveli by Reg. 6 of
1963, s. 2 and Sch. I; Pondicherry by Reg. 7 of 1963, s. 3 and
Sch. I and Laccadive, Minicoy and Amindivi Islands by Reg. 2 of
1970, s. 2 and Sch.
2. Subs. by the A. O. 1950, for sub-section (2).
3. The words “except the State of Jammu and kashmir” omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).

86.3.Agreements contrary to the Act to be void.

3. Agreements contrary to the Act to be void.- An agreement to pledge the labour of a child shall be void.

4.Penalty for parent or guardian making agreement to pledge the labourof a child.

4. Penalty for parent or guardian making agreement to pledge the labour of a child.- Whoever, being the parent or guardian of a child, makes an agreement to pledge the labour of that child, shall be punished with fine which may extend to fifty rupees.

5.Penalty for making with a parent or guardian an agreement to pledgethe labour of a child.

5. Penalty for making with a parent or guardian an agreement to pledge the labour of a child.- Whoever makes with the parent or guardian of a child an agreement whereby such parent or guardian pledges the labour of the child shall be punished with fine which may extend to two hundred rupees.

6.Penalty for employing a child whose labour has been pledged.

6. Penalty for employing a child whose labour has been pledged.-
Whoever, knowing or having reason to believe that an agreement has been made to pledge the labour of a child, in furtherance of such agreement employs such child, or permits such child to be employed in any premises or place under his control, shall be punished with fine which may extend to two hundred rupees.

1. Short title, extent and commencement.- (1) This Act may be called the Cine-workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981.(2) It extends to the whole of India.

(3) It shall come into force on such date1* as the Central
Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and for different areas.

2.Definitions.

2. Definitions.- In this Act, unless the context otherwise requires,–

(a) “cinema theatre” means a place which is licensed under
Part III of the Cinematograph Act, 1952 (37 of 1952), or under any other law for the time being in force in a
State for the exhibition of a cinematograph film;

(b) “cinematograph film” has the same meaning as in the
Cinematograph Act, 1952 (37 of 1952)

(c) “cine-worker” means an individual–

(i) who is employed, directly or through any contractor or other person, in or in connection with the production of a feature film to work as an artiste
(including actor, musician or dancer) or to do any work, skilled, unskilled, manual, supervisory, technical, artistic or otherwise; and

(ii) whose remuneration with respect to such employment in or in connection with the production of such feature film does not exceed, where such remuneration is by way of
———————————————————————
1. 1-10-1984: Vide Notif. No. G.S.R. 676(E), dated 21-9-1984, Gazette of India, Extraordinary, Pt. II, Sec. 3(i).

618.monthly wages, a sum of one thousand six hundred rupees per month, and where such remuneration is by way of a lump sum, a sum of fifteen thousand rupees;

(d) “competent authority” means any authority authorised by the Central Government by notification in the Official
Gazette to perform all or any of the functions of the competent authority under this Act:

(e) “contractor” means a person who furnishes or undertakes to furnish cine-workers for being employed in or in connection with the production of a feature film, and includes a sub-contractor or agent;

(f) “feature film” means a full length cinematograph film produced wholly or partly in India with a format and a story woven around a number of characters where the plot is revealed mainly through dialogues and not wholly through narration, animation or cartoon depiction, and does not include an advertisement film:

(g) “prescribed” means prescribed by rules made under this
Act;

(h) “producer”, in relation to a feature film, means the person by whom the arrangements necessary for the making of such film (including the raising of finances and engaging cine-workers for the making of such film)
are undertaken;

(i) “production”, in relation to a feature film, includes any of the activities in respect of the making thereof;

(j) “Tribunal” means a Cine-workers Tribunal constituted under section 7;

(k) “wages” means all emoluments which are payable to a worker in accordance with the terms of the contract of employment in cash, but does not include–

(i) the cash value of any food concession;

(ii) any dearness allowance (that is to say, all cash payments, by whatever name called, paid to a worker on account of a rise in the cost of living or on account of his being required to work in a place other than the place where he is normally residing), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the worker in respect of his employment or of work done in such employment;

619.(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the worker under any law for the time being in force;

(iv) any gratuity payable on the termination of his contract.

CHAPTER IIESTABLISHMENT OF THE NATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT AND CAPITAL THEREOF

3. Establishment and incorporation of National Bank for
Agriculture and Rural Development. (1) With effect from such date1* as the Central Government may, by notification in the Official Gazette, appoint, there shall be established for the purposes of this Act, a bank to be known as the National Bank for Agriculture and Rural
Development.

(2) The Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may by that name sue and be sued.

(3) The head office of the National Bank shall be at Bombay or at such other place as the Central Government may, by notification, specify.

(4) The National Bank may establish offices, branches or agencies at any place in India, and with the previous approval of the Central
Government and in consultation with the Reserve Bank, at any place outside India.

4.Capital.

4. Capital. (1) The capital of the National Bank shall be one hundred crores of rupees:

Provided that the Central Government may, in consultation with the Reserve Bank and by notification, increase the said capital up to five hundred crores of rupees.

(2) The capital of the National Bank shall be subscribed to by the Central Government and the Reserve Bank in equal proportions.

CHAPTER IIREGULATION OF EMPLOYMENT OF CINE-WORKERS

3. Prohibition of employment of cine-worker without agreement.-
(1) No person shall be employed as a cine-worker in or in connection with the production of any feature film unless,–

(a) an agreement in writing is entered into with such person by the producer of such film; or, where such person is employed through a contractor or other person, by the producer of such film and such contractor or other person; and

(b) such agreement is registered with the competent authority by the producer of such film.

(2) Every agreement, referred to in sub-section (1) shall,–

(a) be in the prescribed form;

(b) specify the name of and such other particulars as may be prescribed with respect to, the person to whose employment it relates (hereafter in this sub-section referred to as the employee)

(c) specify the nature of assignment of the employee, his hours of work, the wages and other benefits (including benefits by way of provident fund, if any), to which he is entitled; the mode of payment of such wages and contributions to such provident fund and all other terms and conditions of employment;

(d) include, where such employee is employed through a contractor or other person, a specific condition to the effect that in the event of the contractor or other person failing to discharge his obligations under the agreement to the employee with respect to payment of wages or any other matter, the producer of the film concerned shall be liable to discharge such obligations and shall be entitled to be reimbursed with respect thereto by the contractor or other person.

620.(3) A copy of the agreement referred to in sub-section (1) with respect to the employment of any person as a cine-worker shall, if such person is entitled to the benefits of provident fund under section 16, also be forwarded by the producer of the film to the
Regional Provident Fund Commissioner concerned under the Employees
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).

4.Conciliation officers.

4. Conciliation officers.- The Central Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit to be conciliation officers charged with the duty of mediating and promoting the settlement of any dispute (hereinafter referred to as the dispute) between a cine-worker and the producer of the film in, or in connection with, which he has been employed or the contractor or other person through whom he has been so employed, with respect to the terms and conditions or termination, of employment of such cine-worker.

5.Duties of conciliation officers.

5. Duties of conciliation officers.- (1) Where any dispute exists or is apprehended, the conciliation officer may hold conciliation proceedings in the prescribed manner.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings, the conciliation officer shall send a report thereof to the Central
Government together with a memorandum of the settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable, after the close of the investigation, send to the Central Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances and the reasons on account of which, in his opinion a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub-
section (4), the Central Government is satisfied that there is a case for reference to a Tribunal, it may make such reference under section
11 and where that Government does not make such a reference, it shall record and communicate to the parties concerned its reasons therefor.

621.(6) A report under this section shall be submitted within three months of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the Central Government:

Provided that, subject to the approval of the conciliation officer, the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.

6.Settlement to be binding and to be enforced by the competentauthority.

6. Settlement to be binding and to be enforced by the competent authority.- Every settlement arrived at in the course of a concilation proceeding under this Chapter shall be binding on all the parties to the dispute and shall not be called in question in any court and it shall be duty of the competent authority to enforce the terms of the said settlement.

7.Constitution of Tribunals.

7. Constitution of Tribunals.- (1) The Central Government may, by notification in the Official Gazette, constitute one or more
Tribunals, to be called the Cine-workers Tribunals, with headquarters at such place as may be specified in the notification, for the adjudication of disputes relating to any matter specified in any agreement of the nature referred to in section 3.(2) A Tribunal shall consist of one person only to be appointed by the Central Government.

(3) A person shall not be qualified for appointment as the presiding officer of a Tribunal unless–

(a) he is, or has been, or is qualified to be, a Judge of a
High Court; or

(b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge; or

(c) he has held the office of the presiding officer of an
Industrial Tribunal constituted under the Industrial
Disputes Act, 1947 (14 of 1947), for a period of not less than two years.

(4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advice the Tribunal in any proceedings before it.

8.Disqualification for the presiding officers of Tribunals.

8. Disqualification for the presiding officers of Tribunals.- No person shall be appointed to, or continue in, the office of the presiding officer of a Tribunal, if–

(a) he is not an independent person; or

(b) he has attained the age of sixty-five years.

9.Filling of vacancies.

9. Filling of vacancies.- If, for any reason, a vacancy (other than a temporary absence) occurs in the office of the presiding officer of a Tribunal, the Central

622.Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy, and the proceeding may be continued before the Tribunal from the stage at which the vacancy is filled.

10.Finality of orders constituting Tribunals, etc.

10. Finality of orders constituting Tribunals, etc.- (1) No order of the Central Government appointing any person as the presiding officer of a Tribunal shall be called in question in any manner; and no act or proceeding before any Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of such Tribunal.

(2) No settlement arrived at in the course of a conciliation proceeding shall be invalid by reason only of the fact that such settlement was arrived at after the expiry of the period referred to in sub-section (6) of section 5.11.Reference of disputes to Tribunals.

11. Reference of disputes to Tribunals.- (1) Where, on a consideration of the report referred to in sub-section (4) of section
5, the Central Government is satisfied that it is necessary so to do, it may, by order in writing, refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, to a Tribunal for adjudication.

(2) Where in an order referred to in sub-section (1) or in a subsequent order, the Central Government has specified the points of dispute for adjudication, the Tribunal shall confine its adjudication to those points and matters incidental thereto.

12.Procedure and powers of conciliation officers and Tribunals.

12. Procedure and powers of conciliation officers and Tribunals.-
(1) Subject to any rules that may be made in this behalf, a conciliation officer or a tribunal shall follow such procedure as the officer or Tribunal may think fit.

(2) A conciliation officer or a Tribunal may, for the purpose of inquiry into any existing or apprehended dispute, after giving reasonable notice, enter any premises in the occupation of any party to the dispute.

(3) Every Tribunal shall have the same powers as are vested in a
Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit, in respect of the following matters, namely:–

(a) enforcing the attendance of any person and examining him on oath;

(b) compelling the production of documents and material objects;

(c) issuing commissions for the examination of witnesses;
and

(d) in respect of such other matters as may be prescribed;

and every inquiry or investigation by a Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI
of the Code of Criminal Procedure, 1973 (2 of 1974).

623.(4) A conciliation officer may call for and inspect any document which he has ground for considering to be relevant to the dispute or to be necessary for the purpose of verifying the implementation of any award or carrying out any other duty imposed on him under this
Chapter, and for the aforesaid purposes, the conciliation officer shall have the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908 (5 of 1908), in respect of compelling the production of documents.

(5) A Tribunal may, if it so thinks fit, appoint one or more persons having special knowledge of the matter under consideration as assessor or assessors to advise it in the proceeding before it.

(6) A Tribunal may grant to any party to any proceeding before it, such interim or other reliefs (whether subject to any conditions or not), including stay of any order, issue of any injunction or direction in regard to payment of wages or other amounts payable under the agreement referred to in section 3, setting aside any unilateral termination of contract or the dismissal of a worker or reinstating a worker, as it deems just and proper in the circumstances of the case:

Provided that the Tribunal shall not grant any such interim relief unless all the parties to the proceeding have been served with a notice on the application for such interim relief and have been given a reasonable opportunity of being heard:

Provided further that the Tribunal may, having regard to the nature of the interim relief sought and the circumstances of the case, pass appropriate orders granting such interim relief as it deems just and proper in the circumstances of the case before the notice referred to in the preceding proviso is served on the parties to the proceeding:

Provided also that where the Tribunal makes any order under the proviso immediately preceding, it shall record the reasons for making the order before complying with the requirements specified in the first proviso.

(7) Subject to any rules that may be made in this behalf, the awarding of damages in, and the costs of, and incidental to, any proceeding before a Tribunal shall be in the discretion of that
Tribunal and the Tribunal shall have full power to determine by and to whom and to what extent and subject to what conditions, if any, such damages or costs are to be paid, and to give all necessary directions for the purposes aforesaid and such damages or costs may, on an application made to the Central Government by the person entitled, be directed to be recovered by that Government in the same manner as an arrear of land revenue.

624.13.Duties of Tribunals.

13. Duties of Tribunals.- Where a dispute has been referred to a
Tribunal for adjudication, it shall hold its proceedings expeditiously and shall submit its award to the Central Government ordinarily within a period of three months from the date on which such industrial dispute is referred to it:

Provided that in computing the period of three months under this section, the period for which the proceedings before the Tribunal have been stayed by any injunction or order shall be excluded.

14.Publication of awards of Tribunals.

14. Publication of awards of Tribunals.- (1) Every award of a
Tribunal shall, within a period of thirty days from the date of its receipt by the Central Government, be published in such manner as that
Government thinks fit.

(2) Subject to the provisions of section 15, the award shall be final and binding on all the parties to the dispute and shall not be called in question in any Court in any manner whatsoever.

(3) The award of a Tribunal shall be executed in the same manner as if it were a decree of a Civil Court.

15.Revision.

15. Revision.- (1) The High Court may, on the application of any person aggrieved by the award of a Tribunal, call for and examine the record of the Tribunal, to satisfy itself as to the regularity of the proceeding before such Tribunal or the correctness, legality or propriety of any award passed therein and if, in any case, it appears to the High Court that any such award should be modified, annulled or reversed, it may pass such orders accordingly:

Provided that where the presiding officer of the Tribunal is a
Judge of a High Court, such application shall be heard and disposed of by not less than two Judges of the High Court:

Provided further that where the award of the Tribunal provides for the payment by the producer of any film or, as the case may be, the contractor or other person of any amount either by way of compensation to the cine-worker or by way of damages, no such application by the producer, contractor or other person shall be entertained by the High Court unless the applicant deposits with the
High Court or with such other authority as may be prescribed the amount ordered to be paid:

Provided also that where, in any particular case, the High Court is of opinion that the deposit of any amount ordered to be paid would cause undue hardship to the applicant, the High Court may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the interests of the cine-worker concerned.

625.(2) Every application to the High Court under sub-section (1)
shall be preferred within ninety days from the date on which the award was passed by the Tribunal:

Provided that the High Court may, in its discretion, allow further time not exceeding one month for the filing of any such application, if it is satisfied that the applicant had sufficient cause for not preferring the application within the time specified in this sub-section.

(3) In this section, “High Court” means the High Court within the local limits of whose jurisdiction, the headquarters of the Tribunal is situated.

16.Application of Act 19 of 1952 to cine-workers.

16. Application of Act 19 of 1952 to cine-workers.- The Employees
Provident Funds and Miscellaneous Provisions Act, 1952, as in force for the time being, shall apply to every cine-worker who has worked in not less than three feature films with one or more producers, as if such cine-worker were an employee within the meaning of that Act.

17.Penalties.

17. Penalties.- (1) Whoever contravenes the provisions of section
3 shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to fifty thousand rupees:

Provided that the Court may, for any adequate and special reasons to be mentioned in the judgment, impose a fine of less than ten thousand rupees.

(2) Where any person convicted of an offence under sub-section
(1) is again convicted of an offence under the same provision, he shall be punishable with fine which shall not be less than twenty thousand rupees but which may extend to one lakh rupees:

Provided that the Court may, for any adequate and special reasons to be mentioned in the judgment, impose a fine of less than twenty thousand rupees.

18.Offences by companies.

18. Offences by companies.- (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

626.(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.–For the purposes of this section,–

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

19.Cognizance of offences.

19. Cognizance of offences.- No court shall take cognizance of any offence under this Act except on a complaint made by, or with the permission in writing of, the Central Government or an officer empowered by it in this behalf and no court inferior to that of a
Metropolitan Magistrate or a Judicial Magistrate of the first class shall try an offence punishable under this Act.

20.Magistrates power to impose enhanced penalties.

20. Magistrates power to impose enhanced penalties.
Notwithstanding anything contained in section 29 of the Code of
Criminal Procedure, 1973 (2 of 1974), it shall be lawful for any
Metropolitan Magistrate or any Judicial Magistrate of the first class to pass any sentence authorised by this Act.

21.Effect of laws and agreements inconsistent with this Chapter.

21. Effect of laws and agreements inconsistent with this Chapter.-
The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any agreement or contract of service.

22.Protection of action taken under this Chapter.

22. Protection of action taken under this Chapter.- (1) No suit, prosecution or other legal proceedings shall lie against any competent authority, conciliation officer, or any other employee of the Central
Government or the presiding officer of a Tribunal, for anything which is in good faith done, or intended to be done, in pursuance of this
Act or any rule or order made thereunder.

(2) No suit or other legal proceedings shall lie against the
Central Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or notification or order made or issued thereunder.

22A.

Delegation of powers.

1*[22A. Delegation of powers.- The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act or rules made thereunder (other than the powers conferred by this section and section 23) shall, in relation to such matters and subject to such conditions, if any, as may be specified in the notification be exercisable also by the State
Government or by such officer or authority subordinate to the State
Government as may be specified in the notification.]

23.Power to make rules.

23. Power to make rules.- (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(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 form in which an agreement may be entered into by a producer with a cine-worker under section 3 and the other conditions of employment;
———————————————————————
1. Ins. by Act 35 of 1988, s. 2.627.(b) the manner in which proceedings may be held by a conciliation officer under sub-section (1) of section
5;

(c) the procedure to be followed by a conciliation officer or Tribunal under section 12;

(d) the matters referred to in clause (d) of sub-section (3)
of section 12;

(e) the damages or costs that may be awarded by a Tribunal under sub-section (7) of section 12;

(f) any other matter which is required to be, or may be, prescribed.

(3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, 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.

CHAPTER IIIMANAGEMENT OF THE NATIONAL BANK

5. Management.- (1) The general superintendence, direction and management of the affairs and business of the National Bank shall vest in a Board of Directors, which shall exercise all powers and do all acts and things which may be exercised or done by the National Bank.

(2) Subject to the provisions of this Act, the Board in discharging its functions, shall act on business principles with due regard to public interest.
———————————————————————-

1. 12-7-1982: vide Notifi. No S. O. 485 (E), dt. 6-7-1982.319.(3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulations made under this Act, the
Managing Director shall also have powers of general superintendence, direction and management of the affairs and business of the National
Bank and may also exercise all powers and do all acts and things which may be exercised or done by the National Bank:

1*[Provided that during the period of any casual vacancy of the nature referred to in section 11 in the office of the Managing
Director, the Chairman may also exercise the powers and discharge the functions of the Managing Director untill the person appointed by the Central Government under section 11 to act as Managing Director enters upon his office.]

(4) Any whole-time director appointed under sub-section (3) of section 6 shall assist the Managing Director in the discharge of his functions under subsection (3) and perform such duties as the Board may entrust or delegate to him.

(5) In the discharge of his powers and functions under sub-
section (3), the Managing Director shall follow such directions as the
Chairman may give.

(6) In the discharge of its functions under this Act, the
National Bank shall be guided by such directions in matters of policy involving public interest as the Central Government, in consultation with the Reserve Bank, or the Reserve Bank, may give in writing.

6.Board of Directors.

6. Board of Directors. (1) The Board of Directors of the National
Bank shall consist of the following, namely:–

(a) a Chairman;

(b) two directors from amongst experts in rural economics, rural development, handicrafts and other rural crafts, village and cottage industries and small-scale industries or in any other matter, the special knowledge or professional experience in which is considered by the Central Government as useful to the National
Bank;

(c) three directors out of whom two shall be persons with experience in the working of co-operative banks and one shall be a person with experience in the working of commercial banks;

(d) three directors from out of the directors of the Reserve
Bank;

(e) three directors from amongst the officials of the
Central Government;

(f) two directors from amongst the officials of the State
Governments; and

(g) a Managing Director.

(2) The Chairman and other directors shall be appointed by the
Central Government in consultation with the Reserve Bank:

2*[Provided that no such consultation shall be necessary in the case of directors appointed under clause (e) of sub-section (1).]

(3) Where the Central Government is satisfied, in consultation with the Reserve Bank 3*** that it is necessary so to do, it may appoint one or more whole-time directors with such designations as may be deemed appropriate by that Government and any whole-time director so appointed shall also be a member of the Board:

4* * * * *
———————————————————————-
1. Ins. by Act 66 of 1988, s. 43 (w.e.f. 30-12-1988).
2. Omitted by Act 81 of 1985, s. 17 (w.e.f. 1-5-1986) and ins. by Act 66 of
1988, s. 44 (w.e.f. 30-12-1988).
3. Certain words omitted by Act 81 of 1985, s. 17 (w.e.f. 1-5-1986).
4. Proviso omitted by s. 17, ibid. (w.e.f. 1-5-1986).

320.7.Term of office of Chairman and other directors, retirement and paymentof fees.

7. Term of office of Chairman and other directors, retirement and payment of fees.- (1) The Chairman shall hold office for such term not exceeding five years and shall receive such salary and allowances as the Central Government may, at the time of appointment, specify:

1* * * * *

2*[(1A) Notwithstanding anything contained in sub-section (1), the
Central Government shall have the right to terminate the terms of office of the Chairman at any time before the expiry of the term specified under that sub-section by giving him a notice of not less than three months in writing or three months, salary and allowances in lieu of such notice.]

3*[(2) Subject to the provisions contained in sub-section (5), a director appointed under clause (b) or clause (c) of sub-section (1)
of section 6, shall hold office for such term, not exceeding three years as the Central Government may specify in this behalf and thereafter until his successor inters upon his office, and shall be eligible for reappointment:

Provided that no such director shall hold office continuously for a period exceeding six years.]

(3) The Central Government may, in consultation with the Reserve
Bank, remove the Chairman 4*** at any time before the expiry of his term of office after giving him a reasonable opportunity of showing cause against the proposed removal.

(4) The Chairman and the directors referred to in sub-section (2)
shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Bank:

Provided that no such fee shall be payable to the Chairman or any other director, who is an officer of the Government or an officer of the Reserve Bank.

5*[(5) The directors appointed under clauses (b) to (f) of sub-
section (1) of section 6 shall hold office during the pleasure of the
Central Government.]

8.Term of office of Managing Director and whole-time directors,conditions of service, etc.

8. Term of office of Managing Director and whole-time directors, conditions of service, etc.- (1) The Managing Director and any whole-
time director appointed under sub-section (3) of section 6 shall,–

(a) hold office for such term not exceeding five years as the Central Government may, at the time of appointment, specify;

(b) receive such salary and allowances and be governed by such terms and conditions of service as the Board may, with the previous approval of the Central Government and in consultation with the Reserve Bank, determine:

Provided that the Managing Director and any such whole-time director appointed to the first Board shall receive such salary and allowances and be governed by such terms and conditions of service as the Central Government may, in consultation with the Reserve Bank, determine.

(2) The Central Government may, in consultation with the Reserve
Bank, remove the Managing Director or any whole-time director appointed under subsection (3) of section 6 at any time before the expiry of his term of office, after giving him a reasonable opportunity of showing cause against the proposed removal.

(3) Notwithstanding anything contained in sub-section (1) or sub-
section (2), the Central Government shall have the right to terminate the term of office of the Managing Director or of any whole-time director appointed under sub-section (3) of section 6 at any time before the expiry of the term fixed under sub-section (1) by giving him notice of not less than three months in writing or three months
salary and allowances in lieu of such notice:

Provided that the Central Government shall, before terminating the term of office of the Managing Director or any whole-time director appointed under sub-section (3) of section 6, consult the Reserve
Bank.
———————————————————————
1. Proviso omitted by Act 81 of 1985, s. 18 (w.e.f. 1-5-1986).
2. Ins. by s. 18, ibid. (w.e.f. 1-5-1986).
3. Subs. by Act 66 of 1988, s. 45 (w.e.f. 30-12-1988).
4. Certain words omitted by s. 45, ibid. (w.e.f. 30-12-1988).
5. Ins. by s. 45, ibid. (w.e.f. 30-12-1988).

321.9.Disqualifications.

9. Disqualifications. (1) No person shall be a director who–

(a) is of unsound mind and stands so declared by a competent court; or

(b) is or has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or

(c) is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors.

(2) The appointment as director of any person who is a Member of
Parliament or the Legislature of any State shall, unless within two months of the date of his appointment he ceases to be such member, be void on the expiry of the said period of two months and if any director is elected or nominated as a Member of Parliament or of any
State Legislature he shall cease to be a director as from the date of such election or nomination, as the case may be.

10.Vacation and resignation of office by directors.

10. Vacation and resignation of office by directors.- (1) If a director–

(a) becomes subject to any of the disqualifications mentioned in section 9; or

(b) is absent without leave of the Board for more than three consecutive meetings thereof, his seat shall thereupon become vacant.

(2) Any director may resign his office by giving notice thereof in writing to the Central Government, and on his resignation being accepted by the Central Government or if his resignation is not sooner accepted, on the expiry of three months from the receipt thereof by the Central Government, he shall be deemed to have vacated his office.

11.Casual vacancy in the office of Managing Director.

11. Casual vacancy in the office of Managing Director. If the
Managing Director is by infirmity or otherwise rendered incapable of carrying out his duties or is duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, the Central Government may, after consultation with the
Reserve Bank and the Board, appoint another person to act in his place as Managing Director during his absence.

12.Meetings of Board.

12. Meetings of Board.-(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.

(2) The Chairman of the Board, or, if for any reason he is unable to attend any meeting, any other director nominated by the Chairman in this behalf, and in the absence of such nomination, any other director elected by the directors present at the meeting, shall preside at the meeting of the Board.

(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.

13.Committees of National Bank.

13. Committees of National Bank.- (1) The Board may constitute an
Executive Committee consisting of such number of directors as may be prescribed.

(2) The Executive Committee shall discharge shall discharge such function as may be prescribed or may be delegated to it by the Board.

322.(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit and for such purposes as it may decide and every committee so constituted shall discharge such functions as may be delegated to it by the Board.

(4) The Executive Committee shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, as may be prescribed.

(5) The times and places at which any committee constituted under subsection (3) shall meet, the rules of procedure which such committee shall observe in regard to the transaction of business at its meetings, and the fees and allowances which may be paid to the members of such committee for attending the meetings of the committee and for attending to any other work of the National Bank shall be such as may be specified by that Bank.

14.Advisory Council.

14. Advisory Council.-(1) The Board shall constitute an Advisory
Council consisting of such number of directors and such other persons who, in the opinion of the Board, have special knowledge of agriculture, agricultural credit, co-operation and rural economics, small-scale industries, village and cottage industries and handicrafts and other rural crafts or have special knowledge and appreciation of the countrys overall developmental policies and in particular overall monetary and credit policies, which is considered by the Board as useful to the National Bank.

(2) The Advisory Council shall advise the National Bank in such matters as may be referred to the Advisory Council by the National
Bank and may discharge such other functions as may be entrusted or delegated to the Advisory Council by the National Bank.

(3) A member of the Advisory Council shall hold office for such term not exceeding five years as the National Bank may fix, and receive such fees and allowances as may be prescribed for attending the meetings of the Advisory Council and for attending to any other work of the National Bank.

(4) The Advisory Council shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed.

15.Member of Board or Committee thereof not to participate in meetings incertain cases.

15. Member of Board or Committee thereof not to participate in meetings in certain cases.- A director of the Board or a member of a
Committee, who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board or a
Committee thereof, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting, and the disclosure shall be recorded in the minutes of the Board, or the Committee, as the case may be, and the director or member shall not take any part in any deliberation or decision of the Board or the Committee with respect to that matter.

CHAPTER IIIREGULATION OF EMPLOYMENT OF CINEMA THEATRE WORKERS

24.Application of Act 19 of 1952.24. Application of Act 19 of 1952.- The provisions of the
Employees Provident Funds and Miscellaneous Provisions Act, 1952, as in force for the time being, shall apply to every cinema theatre in which five or more workers are employed on any day, as if such cinema theatre were an establishment to which the aforesaid Act had been applied by a notification of the Central Government under the proviso to sub-section (3) of section 1 thereof, and as if each such worker were an employee within the meaning of that Act.

25.Application of Act 39 of 1972.25. Application of Act 39 of 1972.- The provisions of the Payment of Gratuity Act, 1972, as in force for the time being, shall apply to or in relation to, every worker employed in a cinema theatre in which five or more workers are employed or were employed on any day of the preceding twelve months, as they apply to, or in relation to, employees within the meaning of that Act.

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THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT ACT, 1981.ACT NO. 61 OF 1981.[30th December, 1981.]An Act to establish a bank to be known as the National Bank for
Agriculture and Rural Development for providing credit for the promotion of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas, and for matters connected therewith or incidental thereto.BE it enacted by Parliament in the Thirty-second Year of the
Republic of India as follows:–

CHAPTER IVTRANSFER OF BUSINESS TO THE NATIONAL BANK

16. Transfer of assets and liabilities of Agricultural Refinance and Development Corporation.- (1) On such date as the Central
Government, in consultation with the Reserve Bank may, by notification, appoint, the entire undertaking of the Agricultural
Refinance and Development Corporation (hereafter in this Chapter referred to as the “Corporation”) including all business, property, assets and liabilities, rights, interests, privileges and obligations of whatever nature, shall stand transferred to and vest in the
National Bank.

(2) As compensation for the transfer of the undertaking of the
Corporation to the National Bank under sub-section (1), the National
Bank shall within six months from the date appointed under that sub-
section (hereafter in this sec-
———————————————————————-

1. 12-7-1982: vide Notifi. No. S. O 486(E), dt. 6-7-1982.323.tion referred to as the appointed date) pay to the shareholders of the
Corporation a sum equal to the total paid-up capital of the
Corporation as on the date immediately preceding the appointed date.

(3) The amount of compensation payable under sub-section (2) to the shareholders of the Corporation shall be apportioned among the shareholders in proportion to their contributions to the paid-up capital of the Corporation as on the date immediately preceding the appointed date.

Explanation.–For the purposes of this sub-section, “shareholders of the Corporation” means shareholders of the Corporation whose names appear on the register of shareholders maintained under section 8 of the Agricultural Refinance and Development Corporation Act, 1963 (10.of 1963), on the date immediately preceding the appointed date.

(4) The National Bank shall also pay to the shareholders of the
Corporation referred to in sub-section (2) an amount calculated at the rate at which the shares of the Corporation were guaranteed as to the payment of minimum divided under section 6 of the Agricultural
Refinance and Development Corporation Act, 1963 (10 of 1963), for the period, if any, that has expired in the accounting year of the
Corporation before the appointed date and this amount the National
Bank shall distribute to the shareholders of the Corporation referred to in sub-section (2) in proportion to the shares held by such shareholders on the date immediately preceding the appointed date and at the rate at which such shares were guaranteed as to the payment of minimum dividend.

(5) All contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the appointed date and to which the Corporation is a party, or which are in favour of the Corporation, shall be of as full force and effect against or in favour of the National Bank, as the case may be, and may be enforced or acted upon as fully and effectually as if instead of the
Corporation the National Bank had been a party thereto, or as if they had been in favour of the National Bank.

(6) If, immediately before the appointed date, any suit, appeal or other legal proceeding of whatever nature, is pending, by or against the Corporation, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the
National Bank of the undertaking of the Corporation, or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced, by or against the National Bank.

17.Dissolution of the Corporation and repeal of Act 10 of 1963.17. Dissolution of the Corporation and repeal of Act 10 of 1963.-
On the date appointed under sub-section (1) of section 16,–

(a) the Corporation shall stand dissolved; and

(b) the Agricultural Refinance and Development Corporation
Act, 1963, shall stand repealed.

18.Transfer of business from Reserve Bank.

18. Transfer of business from Reserve Bank. (1) On such date as the Central Government may, in consultation with the Reserve Bank, by notification, appoint, the assets and liabilities with the Reserve
Bank relating to–

(a) the National Agricultural Credit (Long Term Operations)
Fund established and maintained under section 46A of the Reserve
Bank of India Act, 1934 (2 of 1934); and
———————————————————————

1. 12-7-1982: vide Notifi. NO. S. O 488 (E) dt. 6-7-1982.324.(b) the National Agricultural Credit (Stabilisation) Fund established and maintained under section 46B of the Reserve Bank of India Act, 1934 (2 of 1934), shall stand transferred to the
National Bank and form part of the National Rural Credit (Long
Term Operations) Fund referred to in section 42 and the National
Rural Credit (Stabilisation) Fund referred to in section 43, respectively.

(2) With effect from such date as the Central Government may, in consultation with the Reserve Bank, by notification, appoint, the loans and advances which the Reserve Bank has granted to State co-
operative banks and regional rural banks under section 17 [except sub-
clause (a) of clause (4)] of the Reserve Bank of India Act, 1934 (2.of 1934), and which the Reserve Bank may specify by a general or special order, shall, as far as may be, become and be deemed to be loans and advances granted by the National Bank under section 21, and the National Bank shall repay to the Reserve Bank, the amount of such loans and advances on such terms and conditions as the Central
Government may specify, in consultation with the Reserve Bank.

(3) All rights, liabilities interests, privileges and obligations of whatever nature (including the rights and obligations arising by way of purchase, sale and rediscount of any bills of exchange and promissory notes) of the Reserve Bank in relation to any asset or liability referred to in sub-section (1) or any loan or advance referred to in sub-section (2) shall stand transferred to and vest in the National Bank on the date on which such asset or liability stands transferred to the National Bank under sub-section (1) or, as the case may be, such loan or advance becomes under sub-section (2) a loan or advance granted by the National Bank.

(4) All contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature relating to any asset or liability referred to in sub-section
(1) and subsisting or having effect immediately before the date appointed under that sub-section or relating to any loan or advance referred to in sub-section (2) and subsisting or having effect immediately before the date appointed under that sub-section shall be of as full force and effect against, or in favour of, the National
Bank, as the case may be, and may be enforced or acted upon as fully and effectually as if instead of the Reserve Bank, the National Bank had been a party thereto, or as if they had been in favour of the
National Bank.

(5) If, immediately before the date appointed under sub-section
(1) or sub-section (2), as the case may be, any suit, appeal or other legal proceedings of whatever nature relating to any asset or liability referred to in sub-section (1) or any loan or advance referred to in sub-section (2) is pending, by or against the Reserve
Bank, the same shall not abate, be discontinued, or be in any way prejudicially affected by reason of the transfer to the National Bank of such asset or liability under sub-section (1), or as the case may be, such loan or advance becoming under sub-section (2) a loan or advance granted by the National Bank, or of anything contained in this
Act, but the suit, appeal or other proceedings may be continued, prosecuted and enforced, by or against the National Bank.

CHAPTER VBORROWINGS BY THE NATIONAL BANK

19. Borrowings by the National Bank.-The National Bank may, for the purpose of carrying out its functions under this Act,–

(a) issue and sell bonds and debentures carrying interest, which bonds and debentures shall be guaranteed by the Central
Government as to the repayment of principal and payment of interest at such rates as may be
———————————————————————-

1. 12-7-1982: vide Notifi No. S. O 487 (E), dt. 6-7-1982/

325.fixed by the Central Government in consultation with the Reserve
Bank at the time the bonds or debentures are issued;

(b) borrow money from the Reserve Bank repayable on demand or on the expiry of fixed periods not exceeding eighteen months from the date of the making of the loan or advance, on such terms and conditions including the terms relating to security and purpose as may be specified by the Reserve Bank;

(c) borrow money from the Central Government and from any other authority or organisation or institution approved by that
Government, on such terms and conditions as may be agreed upon;

(d) accept from the Central Government, a State Government, a local authority, a State land development bank, a State co-
operative bank or a scheduled bank or any person approved by the
Central Government in this behalf, deposits repayable after the expiry of a period which shall not in any case be less than twelve months from the making of such deposit and on such other terms as the National Bank may, with the prior approval of the
Reserve Bank fix; and

(e) receive gifts, grants, donations or benefactions from
Government or any other source.

20.Borrowings in foreign currency.

20. Borrowings in foreign currency. (1) Notwithstanding anything contained in the Foreign Exchange Regulation Act, 1973 (46 of 1973), or in any other law for the time being in force relating to foreign exchange, the National Bank may borrow, with the previous approval of the Central Government and in consultation with the Reserve Bank, foreign currency from any bank or financial institution in India or elsewhere.

(2) The Central Government may guarantee loans taken by the
National Bank under sub-section (1) as to the repayment of principal and the payment of interest thereon and other incidental charges.

CHAPTER VICREDIT FUNCTIONS OF THE NATIONAL BANK

21. Production and marketing credit.- (1) The National Bank may provide by way of refinance, loans and advances, repayable on demand or on the expiry of fixed period not exceeding eighteen months, to
State co-operative banks, regional rural banks, or to any financial institution or to any class of financial institutions, which are approved by the Reserve Bank in this behalf, for financing–

(i) agricultural operations or the marketing of crops, or

(ii) the marketing and distribution of inputs necessary for agriculture or rural development, or

(iii) any other activity for the promotion of or in the field of agriculture or rural development, or

(iv) bona fide commercial or trade transactions, or

(v) the production or marketing activities of artisans or of small-scale industries, industries in the tiny and decentralised sector, village and cottage industries or of those engaged in the field of handicrafts and other rural crafts.

(2) The National Bank may make loans and advances under sub-
section (1) against the security of–

(i) stocks, funds and securities other than immovable property, in

326.which a trustee is authorised to invest trust money by any law for the time being in force;

(ii) promissory notes supported by documents of title to goods, such documents having been transferred, assigned or pledged to the borrowing institution as security for a loan or advance made for any of the purposes specified in sub-section
(1):

Provided that the National Bank may, whenever it considers it necessary so to do, accept, in lieu of the actual assignment of any such security in favour of the National Bank, a declaration in writing from the borrowing institution,–

(a) stating that it holds such documents such documents of title to goods as may be set out in the declaration; and

(b) containing such other particulars as may be required by the National Bank.

(3) Notwithstanding anything contained in sub-section (2), the
National Bank may in its discretion grant a loan or advance–

(a) to any State co-operative bank if the loan or advance is fully guaranteed for repayment of principal and interest by
Government;

(b) to any State co-operative bank which is a scheduled bank, if the loan or advance is secured either by a bill of exchange or promissory note executed by the central co-operative bank and assigned in favour of the State co-operative bank.

(4) Notwithstanding anything contained in sub-sections (2) and
(3), the National Bank may also make loans and advances repayable on demand or on the expiry of fixed periods not exceeding eighteen months against promissory notes of a State co-operative bank or a regional rural bank or an institution approved under sub-section (1):

Provided that the borrowing institution furnishes a declaration in writing, setting out the purpose for which it has made loans and advances and such other particulars as may be required by the National
Bank.

22.Conversion loan for production credit.

22. Conversion loan for production credit.- Where the National
Bank is satisfied that owing to drought, famine or other natural calamities, military operations or enemy action, any State co-
operative bank, regional rural bank or any such financial institution or any financial institution falling under any such class of financial institutions, as may be approved by the Reserve Bank in this behalf, requires assistance under this section, it may provide to such bank or institution such financial assistance as it may deem fit by way of making loans and advances repayable on the expiry of fixed periods not exceeding seven years and on such terms and conditions as may be specified in this behalf by the National Bank:

Provided that loans and advances may be made under this section only for the purpose of enabling the borrowing bank or institution,–

(i) to pay any dues to the National Bank for credit extended for financing agricultural operations or the marketing of crops under clause (i) of sub-section (1) of section 21, or

(ii) to make to central co-operative banks or primary rural credit societies, loans or advances repayable on the expiry of fixed periods not beings less than eighteen months and not exceeding seven years, by way of reimbursement of loans and advances made by such co-operative bank or

327.societies for agriculture or agricultural operations or for reimbursement of such loans or advances which have been converted into loans or advances repayable on expiry of fixed periods not being less than eighteen months and not exceeding seven years from the date of conversion:

Provided further that no loan or advance shall be made under this section to a State co-operative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the State Government.

23.Rescheduling of loans to artisans, small-scale industries, etc.

23. Rescheduling of loans to artisans, small-scale industries, etc.- Where the National Bank is satisfied that owing to unforeseen circumstances the rescheduling of any loans and advances made to artisans, small-scale industries, industries in the tiny and decentralised sector, village and cottage industries and those engaged in the field of handicrafts and other rural crafts, by any State co-
operative bank, regional rural bank or any such financial institution or any financial institution falling under such class of financial institutions as may be approved by the Reserve Bank in this behalf, has become necessary, it may provide to such bank or institution such financial assistance as it may deem fit by way of loans and advances repayable on the expiry of fixed periods not being less than eighteen months and not exceeding seven years against such securities as may be specified in this behalf by the National Bank:

Provided that no loan or advance shall be made under this section to a State co-operative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the State Government but such guarantee may be waived by the National Bank if other security to the satisfaction of the
National Bank is furnished, or if, for reasons to be recorded by it in writing, the National Bank is satisfied that the guarantee or other security is not necessary.

24.Investment credit–medium term.

24. Investment credit–medium term.- The National Bank shall provide such financial assistance as it may consider necessary by way of making to State co-operative banks, regional rural banks, loans and advances repayable on the expiry of fixed periods not being less than eighteen months and not exceeding seven years against such securities as may be specified, in this behalf, by the National Bank and such loans or advances may be made for agriculture, rural development or such other purposes as the National Bank may, from time to time, determine:

Provided that no loan or advance shall be made under this section to a State co-operative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the State Government but such guarantee may be waived by the National Bank, if other security to the satisfaction of the
National Bank is furnished, or if, for reasons to be recorded by it in writing, the National Bank is satisfied that the guarantee or other security is not necessary.

25.Other investment credit.

25. Other investment credit.- (1) The National Bank may provide such financial assistance as it may consider necessary for promoting agriculture and rural development by–

(a) making loans and advances, by way of refinance, on such terms and conditions as the National Bank may think fit to impose, to a State land development bank or a State co-operative bank or a scheduled bank or any other financial institution approved by the Reserve Bank in this behalf, and also rescheduling the payment of such loans and advances:

328.Provided that the maximum period for which any such loan or advance may be granted, whether originally or by rescheduling the payment thereof, shall not exceed twenty-five years;

(b) purchasing or selling, or subscribing to the bonds or debentures issued by any bank or institution referred to in clause (a) and repayable within a period not exceeding twenty-
five years from the dates on which they are issued;

(c) making loans and advances on such terms and conditions as the National Bank may think fit to impose, to a State co-
operative bank or a scheduled bank for the purpose of enabling such bank to make loans or advances to artisans, small-scale industries, industries in the tiny and decentralised sector, village and cottage industries and those engaged in the field of handicrafts and other rural crafts and also rescheduling the payment of such loans and advances:

Provided that the maximum period for which any such loan or advance may be granted, whether originally or by rescheduling the payment thereof, shall not exceed twenty-five years;

(d) making, where it is considered necessary so to do in connection with any financial assistance under clause (a) or clause (b) or clause (c) to a State land development bank or a
State co-operative bank or a scheduled bank, loans and advances repayable on demand or on the expiry of a fixed period not exceeding eighteen months, by way of refinance to such bank and also rescheduling the payment of such loans and advances for such period as the National Bank may deem fit.

(2) The provisions of this section shall be in addition to, and not in derogation of, the provisions of section 21 and section 24.26.Purchase and sale of shares.

26. Purchase and sale of shares.-The National Bank may contribute to the share capital of, or purchase and sell shares of, or invest in the securities of, any institution concerned with agriculture and rural development, which the Central Government may notify, in consultation with the Reserve Bank.

27.Loans to State Governments for share capital contribution.

27. Loans to State Governments for share capital contribution.-
The National Bank may make loans and advances to State Governments, repayable on the expiry of fixed periods not exceeding twenty years from the date of making such loans and advances, from the National
Rural Credit (Long Term Operations) Fund established under section 42.for enabling them to subscribe directly or indirectly to the share capital of a co-operative credit society.

28.Security for credit.

28. Security for credit.-(1) No accommodation shall be granted by the National Bank under clause (a) or clause (c) of sub-section (1) of section 25 or section 30 or section 32 to any institution other than a scheduled bank unless it is fully and unconditionally guaranteed by the Government as to the repayment of principal and payment of interest:

Provided that no such guarantee shall be required in cases in which security to the satisfaction of the Board is furnished by the borrowing institution.

(2) No accommodation shall be granted by the National Bank under clause (a) or clause (c) of sub-section (1) of section 25 or section
32 to any scheduled bank unless security to the satisfaction of the
Board is furnished by such scheduled bank.

(3) Notwithstanding anything contained in sub-section (1) or sub-
section (2), no guarantee or security referred to therein shall be required in any case

329.in which the Board, for reasons to be recorded by it in writing, decides having regard to the nature and scope of the scheme or schemes for which accommodation is granted by the National Bank that such security or guarantee is not necessary.

29.Amounts and securities to be held in trust.

29. Amounts and securities to be held in trust. (1) Any sums received by a borrowing institution in repayment or realisation of loans and advances refinanced either wholly or partly by the National
Bank shall, to the extent of the accommodation granted by the National
Bank and remaining outstanding, be deemed to have been received by the borrowing institution in trust for the National Bank, and shall accordingly be paid by paid by such institution to the National Bank, as per the repayment schedule fixed by the National Bank.

(2) Where an accommodation has been granted to a borrowing institution, all securities held, or which may be held, by such borrowing institution, on account of any transaction in respect of which such accommodation has been granted by the National Bank, shall be held by such institution in trust for the National Bank.

30.

Direct loans.

30. Direct loans.-The National Bank may make loans and advances otherwise than by way of refinance to any institution approved in this behalf by the Central Government on such terms and conditions
(including security) and repayable within such period not exceeding twenty-five years as the National Bank may deem fit.

31.Commission.

31. Commission.- The National Bank may receive, for the rendering of any of the services mentioned in this Chapter or Chapter VII, such commission or other consideration as may be agreed upon.

32.Issue of guarantees.

32. Issue of guarantees.- The National Bank may guarantee, with the prior approval of the Central Government and on such terms and conditions as may be agreed upon, deferred payments in connection with the purchase of capital goods–

(i) due from a co-operative society approved by the Reserve
Bank in this behalf or such other institutions which may, on the recommendation of the Reserve Bank, be approved by the Central
Government in this behalf, or

(ii) due from any other person and guaranteed to the
National Bank by a State land development bank or a State co-
operative bank or a scheduled bank.

33.Power to impose conditions for accommodation.

33. Power to impose conditions for accommodation.- In entering into any transaction under this Chapter with a borrowing institution, the National Bank may impose such conditions as it may think necessary or expedient for protecting the interests of the National Bank.

34.Power to call for repayment before agreed period.

34. Power to call for repayment before agreed period.-
Notwithstanding anything to the contrary contained in any agreement, the National Bank may, by notice in writing, require any borrowing institution to which it has granted any loan or advance to discharge forthwith in full its liabilities to the National Bank–

(a) if it appears to the Board that false or misleading information in any material particular was given in the application for the loan or advance; or

(b) if the borrowing institution has failed to comply with any of the terms of its contract with the National Bank in the matter of the loan or advance; or

330

(c) if there is a reasonable apprehension that the borrowing institution is unable to pay its debts or that proceedings for liquidation may be commenced in respect thereof; or

(d) if for any reason, it is necessary so to do to protect the interests of the National Bank.

35.National Bank to have access to records.

35. National Bank to have access to records.- (1) The National
Bank shall have free access to all such records of any institution which seeks to avail of any credit facilities from the National Bank and to all such records of any such person who seeks to avail of any credit facilities from such institution, perusal whereof may appear to the National Bank to be necessary in connection with the Providing of finance other assistance to such institution or the refinancing of any loan or advance made to such person by the borrowing institution.

(2) The National Bank may require any institution or person referred to in sub-section (1) to furnish to it copies of any of the records referred to in that sub-section and the institution or the person, as the case may be, shall be bound to comply with such requisition.

36.Validity of loan or advance not to be questioned.

36. Validity of loan or advance not to be questioned.-
Notwithstanding anything to the contrary contained in any other law for the time being in force, the validity of any loan or advance granted by the National Bank in pursuance of the provisions of this
Act shall not be called in question merely on the ground of non-
compliance with the requirements of such other law as aforesaid or of any resolution, contract, memorandum, articles of association or other instrument:

Provided that nothing in this section shall render valid any loan or advance obtained by any company or co-operative society where such company or co-operative society is not empowered by its memorandum to obtain loans or advances.

37.National Bank not to grant loans or advances against its own bonds ordebentures.

37. National Bank not to grant loans or advances against its own bonds or debentures.- The National Bank shall not grant any loan or advance on the security of its own bonds or debentures.

CHAPTER VIIOTHER FUNCTIONS OF THE NATIONAL BANK

38. Other functions of National Bank.- The National Bank–

(i) shall co-ordinate its operations and the operations of various institutions engaged in the field of rural credit and maintain expert staff to study all problems relating to agriculture and rural development and be available for consultation to the Central Government, the Reserve Bank, the
State Governments and the other institutions engaged in the field of rural development;

(ii) may act as the agent for the Central Government or a
State Government or the Reserve Bank in the transaction of any business in respect of loans and advances granted or to be granted, or bonds or debentures purchased or subscribed for, or to be purchased or subscribed for;

331.(iii) may provide facilities for training, for dissemination of information and the promotion of research including the undertaking of studies, researches, techno-economic and other surveys in the field of rural banking, agriculture and rural development and it may for the said purposes make grants including grants by way of provision for fellowships and chairs to any institution.

39.Incidental powers.

39. Incidental powers.- The National Bank may also do all such things as may be necessary or incidental to or consequential upon the exercise of its powers, discharge of its functions and the performance of its duties, under this Act, or under any other law for the time being in force.

40.

Deposits and investments.

40. Deposits and investments.- The National Bank may invest its funds in promissory notes, stocks or securities of the Central
Government or keep the moneys deposited with the Reserve Bank or with any agency of the Reserve Bank or, in consultation with the Reserve
Bank, with a State co-operative bank or a scheduled bank.

41.Credit information.

41. Credit information.-The National Bank may, for the purpose of the efficient discharge of its functions under this Act, collect from or furnish to the Central Government, the Reserve Bank or any banking company or such other financial institution as may be notified by the
Central Government in this behalf, credit information or other information.

Explanation.–For the purposes of this section, the expressions
“banking company” and “credit information” shall have the same meanings as in section 45A of the Reserve Bank of India Act, 1934 (2.of 1934),

CHAPTER VIIIFUNDS, ACCOUNTS AND AUDIT

42. National Rural Credit (Long Term Operations) Fund. (1) The
National Bank shall establish and maintain a Fund to be known as the
National Rural Credit (Long Term Operations) Fund.

(2) The Fund shall (in addition to assets and liabilities transferred under section 18) include,–

(a) such sums of money as the Central Government and the
State Governments may contribute from time to time;

(b) such sums of money as the Reserve Bank may contribute every year; and

(c) such further sums of money as the Board may contribute every year.

(3) The amount in the said Fund shall be applied by the National
Bank only to provide financial assistance by way of loans and advances under section 23, section 24, sub-section (1) of section 25 or section
27 or for the purposes of section 26.43.National Rural Credit (Stabilisation) Fund.

43. National Rural Credit (Stabilisation) Fund. (1) The National
Bank shall establish and maintain a Fund to be known as the National
Rural Credit (Stabilisation) Fund.

(2) The Fund shall (in addition to assets and liabilities transferred under section 18) include,–

(a) such sums of money as the Central Government and the
State Governments may contribute from time to time;

(b) such sums of money as the Reserve Bank may contribute every year; and

332.(c) such further sums of money as the Board may contribute every year.

(3) The amounts in the said Fund shall be applied by the National
Bank only to provide loans and advances under section 22.44.Research and Development Fund.

44. Research and Development Fund.-(1) The National Bank shall establish and maintain a Fund to be known as the Research and
Development Fund, to which shall be credited–

(a) such sums of money as are transferable to this Fund in accordance with section 47;

(b) such sums of money as the Board may contribute every year to this Fund from out of its annual profits; and

(c) such gifts, grants, donations or benefactions which the
National Bank may receive and which the Board may earmark for this purpose.

(2) The Research and Development Fund shall be expended on matters of importance to agriculture, agricultural operations and rural development, including the provision of training and research facilities and the making of grants under clause (iii) of section 38.45.Reserve Fund and other Funds.

45. Reserve Fund and other Funds.- The National Bank shall establish a Reserve Fund and such other Funds as the Board may consider necessary by transferring such sums as it may deem fit, out of its annual profits and out of receipts from gifts, grants, donations or benefactions, which it may receive.

46.Preparation of balance-sheet, etc., of National Bank.

46. Preparation of balance-sheet, etc., of National Bank.-(1) The balance-sheet and accounts of the National Bank shall be prepared and maintained in such form and manner as may be prescribed.

(2) The Board shall cause the books and accounts of the National
Bank to be balanced and closed as on the thirtieth day of June 1*[or such other date in each year as the Central Government may, by notifi-
cation in the Official Gazette, specify.]

2*[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-
section, the Central Government may, by order published in the
Official Gazette, make such provisions as it considers necessary or expedient for the balancing and closing of, or for other matters relating to, the books or accounts in respect of the concerned years.]

47.Disposal of surplus.

47. Disposal of surplus.- After making provision for bad and doubtful debts, depreciation of assets and all other matters for which provision is necessary or expedient or which is usually provided for by bankers, and for the Funds referred to in sections 42, 43 and 45, the National Bank shall transfer–

(i) for a period of fifteen years, following the accounting year during which the National Bank is established, the amount remaining (hereafter in this section referred to as surplus) to the Research and Development Fund under section 44; and

(ii) after the expiry of the said period of fifteen years the National Bank shall, after making provision for the Fund referred to in clause (i), transfer half of the balance of surplus to the Central Government and the other half to the
Reserve Bank.

48.Audit.

48. Audit.-(1) The accounts of the National Bank shall be audited by auditors duly qualified to act as auditors under sub-section (1) of section 226 of the Companies Act, 1956 (1 of 1956), who shall be appointed by the Central Government in consultation with the Reserve
Bank, for such term and on such remuneration as the Central Government may fix.
———————————————————————-

1. Subs. by Act 66 of 1988, s. 46, for “each year” (w.e.f. 30-12-1988).
2. Ins. by s. 46, ibid. (w.e.f. 30-12-1988).

333.(2) The auditors shall be supplied with a copy of the annual balance-sheet of the National Bank and it shall be their duty to examine it together with the accounts and vouchers relating thereto and they shall have a list delivered to them of all books kept by the
National Bank and shall at all reasonable times have access to the books, accounts, vouchers and other documents of the National Bank.

(3) The auditors may, in relation to the accounts of the National
Bank, examine any director of the Board or any officer or other employee of the National Bank and shall be entitled to require from the Board or officers or employees of the National Bank such information and explanation as they may think necessary for the performance of their duties.

(4) The auditors shall make a report to the National Bank upon the annual balance-sheet and accounts examined by them and in every such report, they shall state whether in their opinion the balance-
sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and fair view of the state of affairs of the National Bank and in case they had called for any explanation or information from the Board or any officer or other employee of the National Bank, whether it has been given and whether it is satisfactory.

(5) The National Bank shall furnish to the Central Government and the Reserve Bank within four months from the date on which the annual accounts of the National Bank are closed and balanced, a copy of its balance-sheet as on the close of that year together with a copy of the profit and loss account for the year and a copy of the auditors
report and a report of the working of the National Bank during the relevant year, and the Central Government shall, as soon as may be after they are received by it, cause the same to be laid before each
House of Parliament and cause the copies of the said balance-sheet, profit and loss account and auditors report to be published in the
Official Gazette.

(6) Without prejudice to anything contained in the preceding sub-
sections, the Central Government may, at any time, appoint the
Comptroller and Auditor General of India to examine and report upon the accounts of the National Bank and any expenditure incurred by him in connection with such examination and report shall be payable by the
National Bank to the Comptroller and Auditor General of India.

49.Returns.

49. Returns.- The National Bank shall furnish, from time to time, to the Central Government and to the Reserve Bank, such returns as the
Central Government or the Reserve Bank may require.

CHAPTER IXSTAFF

50. Staff of National Bank.- (1) The National Bank may appoint such number of officers and other employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.

(2) Without prejudice to the provisions of sub-section (1), it shall be lawful for the National Bank to utilise, and for the Reserve
Bank to make available, the services of such staff of the Reserve Bank on such terms and conditions as may be agreed upon between the
National Bank and the Reserve Bank.

334.(3) Subject to the provisions of sub-section (6), at any time before the expiry of six months from the appointed day, the Reserve
Bank may, in public interest, transfer to the National Bank, such members of the staff of Reserve Bank whom the Reserve Bank considers as engaged, or as suitable to be engaged, in attending to the work of a nature which is same or similar to that which the National Bank may require for its efficient functioning, and upon such transfer they shall be deemed to be appointed by the National Bank under subsection
(1) with effect from the date of such transfer:

Provided that every person so transferred may, before the expiry of a period of six months from the appointed day, or before the expiry of a period of thirty days from such transfer, whichever period expires later, elect to go back to the Reserve Bank by exercising an option in writing to that effect, the option once exercised being final, and on the exercise of such option, the Reserve Bank shall, before the expiration of a period of eighteen months from the appointed day, take back such member of the staff and he shall be deemed to have been on deputation to the National Bank during the period he was a member of the staff of the National Bank.

(4) (a) Any member of the staff of the Reserve Bank who is not appointed under sub-section (3), may, if he so desires, make an application to the Reserve Bank within six months from the appointed day, to be considered for appointment as a member of the staff of the
National Bank.

(b) The Reserve Bank may, in consultation with the National Bank, consider such application having regard to the suitability of the person so applying, the availability of vacancies in the National
Bank, the exigencies of service in the Reserve Bank and the National
Bank and such other factors as may be considered relevant in this regard, and, if the Reserve Bank is satisfied having regard to these factors, that such applicant is suitable for being so appointed recommend his appointment to the National Bank.

(c) The National Bank may thereupon, within eighteen months from the appointed day, appoint such a person applying under this sub-
section, as a member of the staff of the National Bank, and on such appointment, such a person shall be deemed to have been appointed in the National Bank under sub-section (3):

Provided that the proviso to sub-section (3) and the proviso to sub-section (5) shall not apply in respect of such a person.

(5) Notwithstanding anything contained elsewhere in this Act or in any other law or in any contract, for the time being in force, at any time before the expiry of six months from the appointed day, the
Reserve Bank may, if it considers it six months from the appointed day, the Reserve Bank so to do in the interest of the National Bank, transfer on promotion any member of the staff of the National Bank to the Reserve Bank, and on such transfer to the Reserve Bank, each such member of the staff shall be deemed to be a member of the staff of the
Reserve Bank and shall be entitled to the same salary, emoluments and other conditions of service to which he was entitled immediately before the date of such transfer, including benefits, if any, arising directly out of such promotion:

Provided that every member of the staff who is transferred as aforesaid may, before the expiry of a period of six months from the appointed day or within thirty days from such transfer, whichever period expires later, elect to go back

335.to the National Bank by exercising an option in writing to that effect, the option once exercised being final, and on the exercise of such option, the National Bank shall, before the expiration of a period of eighteen months from the appointed day, take back such member of the staff and he shall be deemed to have been on deputation to the Reserve Bank during the period he was a member of the staff of the Reserve Bank.

(6) Every person,–

(a) who, immediately before the date appointed under sub-
section (1) of section 16, is a member of the staff of the
Agricultural Refinance and Development Corporation; or

(b) who is a member of the staff of the Reserve Bank but whose services are being utilised immediately before that date by the said Corporation, full n. shall be deemed to be appointed by the National Bank under sub-section (1) on the said date:

Provided that every member of the staff of the Reserve Bank, who is so deemed to be appointed, and who was not recruited specifically for utilisation in the Agricultural Refinance and Development
Corporation, may, before the expiry of a period of six months from the appointed day or within a period of thirty days from the date appointed under sub-section (1) of section 16, whichever period expires later, elect to go back to the Reserve Bank by exercising an option in writing to that effect, the option once exercised being final, and on the exercise of such option, the Reserve Bank shall, before the expiration of a period of eighteen months from the appointed day, take back such member of the staff and he shall be deemed to have been on deputation to the National Bank during the period he was a member of the staff of the National Bank.

(7) Notwithstanding anything contained in any other law or in any agreement, for the time being in force, no member of the staff shall be entitled to claim any compensation for, or in relation to any matter concerning, his transfer, appointment or as the case may be, return, under sub-sections (3) to (6) and no claim in respect thereof shall be entertained by any court, tribunal or other authority.

(8) Subject to the provisions of sub-section (10) and sub-section
(11), every member of the staff of the Agricultural Refinance and
Development Corporation or of the Reserve Bank who is deemed to be appointed as a member of the staff of the National Bank under this section, shall be deemed to have been appointed by the National Bank on the same salary, emoluments and other terms and conditions of service to which he was entitled immediately before his appointment in the National Bank.

(9) The provisions relating to superannuation benefits, namely, the regulations relating to provident fund and the rules relating to payment of gratuity and compassionate gratuity and any other provision relating to superannuation as are applicable to the staff of the
Reserve Bank on the appointed day shall, so far as may be, apply to the staff of the National Bank, unless and until the National Bank alters or amends the same:

Provided that after the appointed day, any such alteration or amendment may be effected by the National Bank as regards provident fund regulations

336.in accordance with section 60, and as regards the other rules in the manner they would have been altered or amended but for this sub-
section:

Provided further that after the expiry of six months from the appointed day, the balances held in the Reserve Bank of India
Employees Provident Fund to the credit of any member of the staff of the Reserve Bank whose services are transferred under this section to the National Bank and who does not opt to go back to the Reserve Bank, shall be transferred to, and held in, the Provident Fund of the
National Bank on same or similar terms subject to which those balances were held earlier in the Reserve Bank of India Employees Provident
Fund.

(10) Notwithstanding anything contained in any other law, settlement, or agreement, every person employed by the National Bank or whose services have been transferred to the National Bank under this Act, shall be liable to serve anywhere in India.

(11) Notwithstanding anything contained in the Industrial
Disputes Act, 1947 (14 of 1947), or any other law for the time being in force, or in any award, judgment, decree, decision or order of any
Industrial Tribunal, Court or other authority, or any settlement or agreement, made or entered into before the date of transfer to the
National Bank of the services of any person under this section, the
National Bank shall be free to alter, amend or repeal in such manner and to such extent it may consider necessary, any of the terms and conditions of service applicable to such persons whose services are so transferred to the National Bank and who are appointed in the National
Bank under this section except that the National Bank shall not alter to their prejudice the terms relating to payment of salary and other emoluments, retirement benefits and eligibility for leave.

Explanation.–For the purposes of this section, “appointed day”
means the date of establishment of the National Bank under section

CHAPTER XMISCELLANEOUS

51. Obligation as to fidelity and secrecy.-(1) The National Bank shall not, except as otherwise required by this Act or any other law, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers, necessary or appropriate for the National Bank to divulge such information.

(2) Every director, member of a committee, auditor, officer or other employee of the National Bank or of the Reserve Bank, whose services are utilised by the National Bank under the provisions of this Act, shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the First Schedule to this Act.

52.Defects in appointment not to invalidate acts, etc.

52. Defects in appointment not to invalidate acts, etc.- (1) No act or proceeding of the Board or of any committee of the National
Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be.

(2) No act done by any person acting in good faith as a director of the Board or as a member of a committee of the National Bank shall become

337.invalid merely on the ground that he was disqualified to be a director or that there was any other defect in his appointment.

53.Protection of action taken under the Act.

53. Protection of action taken under the Act.- No suit or other legal proceeding shall lie against the National Bank or any director or any officer or other employee of the National Bank or any other person authorised by the National Bank to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or of any other law or provision having the force of law.

54.Indemnity of directors.

54. Indemnity of directors.- (1) Every director shall be indemnified by the National Bank against all losses and expenses incurred by him in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default.

(2) A director shall not be responsible for any other director or for any officer or other employee of the National Bank or for any loss or expenses resulting to the National Bank from the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the National Bank or the insolvency or wrongful act of any debtor or any person under obligation to the
National Bank or anything done in good faith in the execution of the duties of his office in relation thereto.

55.Exemption from income-tax, etc.

55. Exemption from income-tax, etc.- Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), or the Companies
(Profits) Surtax Act, 1964 (7 of 1964), or any other enactment for the time being in force relating to tax on income, profits or gains, the National Bank shall not be liable to pay income-tax, surtax or any other tax in respect of any income, profits or gains derived or any amount received by the National Bank.

56.Penalties.

56. Penalties.-(1) Whoever in any return, balance-sheet, or other document or in any information required or furnished by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.

(2) If any person fails to produce any book, account or other document, or to furnish any statement or information which, under the provisions of this Act, it is his duty to produce or furnish, he shall be punishable with a fine which may extend to two thousand rupees in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to one hundred rupees for every day during which the failure continues after conviction for the first such failure.

57.Offences by companies.

57. Offences by companies.- (1) Where an offence has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

338.(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.–For the purpose of this section–

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

58.Bankers Books Evidence Act, 1891, to apply in relation to NationalBank.

58. Bankers Books Evidence Act, 1891, to apply in relation to
National Bank.- The Bankers Books Evidence Act, 1891 (18 of 1891), shall apply in relation to the National Bank as if it were a bank as defined in section 2 of that Act.

59.Liquidation of National Bank.

59. Liquidation of National Bank.-No provision of law relating to the winding up of companies shall apply to the National Bank and the
National Bank shall not be placed in liquidation save by order of the
Central Government and in such manner as it may direct.

60.

Power of Board to make regulations.

60. Power of Board to make regulations.-(1) The Board may, with the previous approval of the Central Government and in consultation with the Reserve Bank, by notification, make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.

(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 fees or allowances that may be paid to the directors or members of the Advisory Council;

(b) the times and places of the meetings of the Board or the
Executive Committee or the Advisory Council and the procedure to be followed at such meetings including the quorum necessary for the transaction of business;

(c) the number of directors constituting the Executive
Committee and the functions that such Committee shall discharge;

(d) the manner and terms of issue and redemption of bonds and debentures by the National Bank;

(e) the conditions which the National Bank may impose in granting loans and advances;

(f) the manner and conditions subject to which the National
Bank may borrow in foreign currency;

(g) The form and manner in which the balance-sheets and the accounts of the National Bank shall be prepared or maintained;

339.(h) the forms of returns and statements which the National
Bank may require under this Act;

(i) the duties and conduct, salaries, allowances and conditions of service of officers and other employees;

(j) the establishment and maintenance of provident or other benefit funds for employees of the National Bank; and

(k) such other matters for which the Board may consider it expedient or necessary to provide for by way of regulations.

(3) Any regulation which may be made by the Board under this Act may be made by the Reserve Bank, in consultation with the Central
Government, before the expiry of three months from the date of establishment of the National Bank, and any regulation so made may be altered and rescinded by the Board in the exercise of its powers under this Act.

(4) The power to make regulations conferred by this section shall include the power to give retrospective effect to the regulations or any of them from a date not earlier than the date of commencement of this Act, but no retrospective effect shall be given to any regulation so as to prejudicially affect the interest of any person to whom such regulation may be applicable.

(5) The Central Government shall cause every regulation made under this Act to be laid, as soon as may be after it is made, before each House of Parliament, 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 regulation or both Houses agree that the regulation should not be made, the regulation 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 regulation.

62.Power to remove difficulty.

62. Power to remove difficulty. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the commencement of this Act.

(3) It shall come into force on such date as the Central
Government may, by notification in the Official Gazette, appoint.

2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,–

(a) “cinematograph film” has the same meaning as in the
Cinematograph Act, 1952 (37 of 1952)

(b) “feature film” means a full length cinematograph film produced wholly or partly in India with a format and a story woven around a number of characters where the plot is revealed mainly through dialogues and not wholly through narration, animation or cartoon depiction and does not include and advertisement film;

(c) “prescribed” means prescribed by rules made under this
Act;

(d) “producer”, in relation to a feature film, means,–

(i) the producer of such film; or

(ii) where the application for a certificate in respect of such film under section 4 of the Cinematograph Act, 1952.(37 of 1952), is made by any other person, such other person.

190

3.Levy and collection of cess on feature films.

3. Levy and collection of cess on feature films .- 1*[(1) There shall be levied and collected as a cess, for the purposes of the
Cine-workers Welfare Fund Act, 1981, a duty of excise at such rete, not being less than one thousand rupees and not exceeding twenty thousand rupees on every feature film, as the Central Government may, by notification in the Official Gazette, specify from time to time.]

(2) The duty of excise levied under sub-section (1) shall be in addition to any cess or duty leviable on cinematograph films under any other law for time being in force.

4.Payment of duty of excise.

4. Payment of duty of excise.-(1) The duty of excise levied under section 3 on any feature film shall be payable to the Central
Government by the producer of such film on or before the date on which he makes an application for a certificate in respect of such film under section 4 of the Cinematograph Act, 1952 (37 of 1952):

Provided that the producer of such film may apply to the Central
Government for the refund of the duty paid by him in respect of such film on the ground,–

(a) that an order refusing to grant any certificate in respect of such film has been made under section 4, read with section 5A, of the Cinematograph Act, 1952 (37 of 1952); and

(b) that he does not intend to appeal against, or seek revision of, such order, or, as the case may be, that the said order has been confirmed on appeal or revision under the said
Act:

Provided further that in case any certificate is granted under the said Act in respect of any film after the refund under the preceding proviso of the duty paid in respect thereof, the producer shall be liable to repay, within a period of seven days from the date of grant of such certificate, to the Central Government the duty so refunded.

(2) Simple interest shall be payable at the rate of twelve per cent. per annum,–

(a) by the Central Government on the amount of duty in relation to any film refunded by it under the first proviso to sub-section (1), from the date of the payment of such duty till the date of such refund;

(b) by the producer of a film on any amount of duty refunded to him under the first proviso to sub-section (1) and repaid by him to the Central Government under the second proviso to that subsection, from the date of such refund to the date of such repayment.

5.Crediting proceeds of duty to Consolidated Fund of India.

5. Crediting proceeds of duty to Consolidated Fund of India.- The proceeds of the duty of excise levied under section 3 shall be credited to the Consolidated Fund of India.

191.6.Power of Central Government to exempt.

6. Power of Central Government to exempt.- Notwithstanding anything contained in this Act, if the Central Government, having regard to the content of a feature film, its technical quality and other factors, is of opinion that it is necessary so to do, it may, by notification in the Official Gazette and subject to such terms and conditions as may be specified in the said notification, exempt such feature film from all or any of the provisions of this Act.

7.Penalty for non-payment of duty of excise.

7. Penalty for non-payment of duty of excise.- If any duty of excise payable by the producer of a feature film to the Central
Government under section 4 [including any duty of excise which has been refunded but which is required to be repaid to that Government under the second proviso to sub-section (1) of that section] is not paid to that Government before the date, or, as the case may be, within the period specified therein, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after such inquiry as it deems fit, impose on the producer, a penalty not exceeding fifty rupees for every month during which the duty of excise is in arrears:

Provided that before imposing any such penalty, such producer shall be given a reasonable opportunity of being heard and, if after such hearing, the said authority is satsfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.

8.Recovery of amounts due under the Act.

8. Recovery of amounts due under the Act.-Any amount due under this Act (including the penalty, if any, payable under section 7) from any producer of a feature film may be recovered by the Central
Government in the same manner as an arrear of land revenue.

9.Protection of action taken in good faith.

9. Protection of action taken in good faith.- No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer or other employee of the Central Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

10.Power to make rules.

10. Power to make rules.- (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for–

(a) the assessment and collection of the duty of excise under section 3;

(b) the authority which may impose any penalty under section
7;

(c) any other matter which is required to be, or may be, prescribed.

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in

192.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.