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REGISTERED No. D-28

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

NEW DELHI, THURSDAY, NOVEMBER 4, 1948

GOVERNMENT OF INDIA

MINISTRY OF LABOUR

NOTIFICATION

New Delhi, the 4th November 1048

No. S 3. 22(1).—The following draft of the Employees' State Insurance (Central) Rules, 1948, which it is proposed to make in exercise of the powers conferred by section 95 of the Employees' State Insurance Act, 1948 (XXXIV of 1948), is published, as required by sub-section (1) of the said section, for the information of all persons likely to be affected thereby and notice in hereby given that the draft will be taken into consideration on or after the 10th Decem- ber 1948,

Any objection or suggestion which may be received from any person in respect of the said draft before the date specified will be considered by the Central Government.

DEAFT RULES

CHAPTER I

1. Short title.—These Rules may be called the Employees' State Insurance (Central) Rules, 1948.

2. Definitions.—In these Rules, unless there is anything repugnant in the subject or context,—

(1) "the Act" means the Employees' State Insurance Act 1948 (Act XXXIV of 1948);

(2) "Chairman" means the Chairman of the Corporation, the Standing

Committee or the Medical Benefit Council as the case may be;

(8) "form" means a form appended to these rules; (4) the " F u n d" means the Employees' State Insurance Fund; (5) "Government Securities" means Government Securities as defined in the Indian Securities Act, 1920;

(6) "immovable property" includes land, benefits to arise out of land, things attached to the earth, or permanently fastened to anything attached to the earth;

(7) "movable property" means property of every description except immovable property;

(8) "year" shall mean the financial year, that is to say, the period begining from the first of April and ending with thirty-first of March of the year following.

( 1711 )

CtiAPTEit IE

3. Election of members to Uie auuaiug Committee (1) Tho Chairman shall, at u meeting ot tuo Ooi.poi.auon aij vvmcn it is proposed to twjct lneuioers of me blanaiii^ L-oumiuiee unaer ciause {c) ot BCUUUII d, invito mtJUiDers to propouu names f.om among members ot tiie Goiporauon belonging to the group iiom winen election is to be made. Tne uuines proponed shall be duly seconded by aiiotlier mourner ot the Corporation.

(2) IJE the Dumber proponed irom any group for election does not exceed thp numoer of vacancies to oe hiled irom that group, the persons ^hose names have been so proposed shall De declared elected to the Standing CoiLiriittee.

(2) If the lumber proposed for election from a group exceeds the number of vacancies to be tilled uieieiioin, eaou member of the (Jorporiition present at thf meeting ahull be given a ballot paper containing the names cf all the cundidatea proposed and he shall be required to vote thereon for ar, many candidates troni the group as there ure viicaucies to be hlicd up. Not more tliun one vote shall be given ii favour of any ono candidate. If any member votes for more candidates than there are vacancies in the group .r give^ more than one vote in favour of any ono candidate, all his votes shall be deemed to be invalid,

(4) Tho persons getting the highest number of votea shall bo declared by the Chairman, at the niueti lg oi as soon thereafter as possible, ay duly elected to the Standing Committee. Provided that where an e^uahty uf votes is found to exist between any candidate and the addition of one vote will ent'.th¹ any of the candidates to be declared to be elected tho dctLrniinntion rf tho person or persons to ulioin such o le additional vote shall lie deemed to h.ivw been given shall be maclo bv lot to be drawn in the presence of tho Chairman and in such manner ns he may determine.

(5) If any question shall arise as to tho validity of any election it shall be referred to the Central Government whose decision i i the ' natter shall be final.

4. Restoration to membership.—(1) A member of the Corporation, the Standing Committee on the Medical Benefit Council, who censes to be a member l> virtue of sr-ct;on 12, shiili be informed of such cessation by a letter sent tc> him by registered post within fifteen days from the date of'such cessation. The letter shall also indicate Hint if he desires restoratio i to membership, he may apply therefor within thirty days from the receipt of the letter.

(2) The application under sub-rule (1) shall indicate tho reasons which pre- vented him from attomlinr: three consecutive meetings and shall be addressed to the Chairman concerned.

(3) The application shall be placed before the next meeting of the Corpora- tion, the Standing Committee or the Med;cal Benefit Council, as the case may bf\ and if a majoritv of the members present at such ireeth'tf are satisfied that the reasons for failure to attend threr- consecutive meetings nre adequate, lie Rhnll he restored to membership immediately after a resolution to that •effect is adopted.

(4) The benefit of restoration to membership as provided for in this rule shall be allowed to a member only once durin? any one form nfl a member.

5. Ffles aid allowances of members.—(1) A non-officinl member of tho Cornorntion, the Standing Committee or the Medical Benefit Council, as the case niflv be reiWnsr nt th* nlace where a meeting is held shall b'e allowed ibe net"til eimpnrliture incurred on conveyance subiect to a maximum of ten rupees for each day on which he attends one or more m e e t r :^

T HE G A Z E T TE 01^ I N D IA E X T R A O R D I N A R Y, NOV. 4, 1948 1713

(2) A non-official member not resident at t he place ,vhere a meeting is faeld, Bhrtll bo allowed travelling and daily allowances in respect of t he meetings which he attends at the following rates, n a m e l y :—

(1) The travelling allowance shall be—

(a) in respect of journeys by air, t he actual fare paid and one quarter of t he sta idnrd air fare for the journey: provided t h at t/)e Chair- m an of t he s t a n d i ng Committee is satisfied t h at journey by air is necessary in public i n t e r e s t: provided further t h at if t he Chair- m an of the Standing Committee is not so satisfied t he journey shall be treated as journoy by rail.

i'r>) in respect of journey by rail, one and a half times the first class railway fare if t he journoy is performod i J t h at class on p a y m e nt of fall fare and in other cases t he actual, railway fare, if a n y, paid and one half of the first class railway fore, from a nd to the usual place of business or from and to t he place from or to which t he journey is actually performed by the m e m b e i, which* ever is less; and

^c) in respect of journeys by >-oad performed otherwise t h an by a m e a ns of locomotion provided at t he expense of Government or t he Corporation at t he rate of mileage allowance admissible to officers of t he first grade in the servioe of tho Central Government. W h en the journey is performed bv road between p b c es connected by railway, mileage will be limited to what, would have been admis- sible had t he member travelled by rail in t he ordinary way.

(ii) The daily allowance shall be at t he m a x i m um rate admissible to thg officers of t he ftast grade in t he service of tho Central Government and shall be payable in respect of each day on which t he m e m b er attends one or more m e e t i n g s; provided t h at t he daily allowance shall also be adniiss.ble at t he ful Tftto for t he day immediately preceding the date of c o m m e n c e m e nt of a meeting if t he m e m b er arrives at t he plnc.e of t he meeting before t he after- noon of such preceding day, and also for t ho day immediately following t he last day of t he meeting if t he m e m b er loaves t he place of t he meeting after the iore-noon of such following day.

Nona.—(1) Travelling or daily allowance shall loo allowed if the member certifies that he han not drawn any ti'iivellinc;

(2) Tho daily and travelling allowance ahall also be payable in respect of any meeting of any sub-committee act ap by the Corporation, Standing ICominitteo or Medical Benetit Council.

6. Minimum number of meetings.—(1) The Corporation shall meet at least twice each year.

(2) The Standing Committee and tho Medical Benefit Council shall meet at least four times each year.

(3) The Chairman may, whenever ho thinks fit, and shall, within fifteen days of the receipt of a requisition in writing from not less than ono-half of the members of the body concerned, call a meeting thereof.

(4) Any requisition made under this rule shall specify the object of the meeting proposed to be culled.

7. Roll of MembBTB.—(1) The Corporation shall maintain a Roll of Members separately for tho Corporation, the Standing Committee and the Medical Benefib Council. The name and the address of eaoh member shall be stated therein^

(2) it a member changes hia address, lie shall notify such change by regis- tered post to the Corporation for the correction of his address ixi the ltoll.

8. Notice of meeting and list of business.—(1) The Chairman shall decid" the date, tinao and pittoo of every meeting. A notice of not loss than twenty- one days from the date of posting shall ordinarily be given to every member of each meeting of the Corporation, the Standing Committee or the Medical Beneiit Council, as the case may be. Such notice shall bo sent to every mem- ber by registered post. A list of business propoyod to be transacted, together with briei notes on each item of the agenda, shall, afler appmval by the Chair- man, be posted along with the notice. If it is necessary to convene an emer- gency meeting, at least ono week's notice thereof shall be given to every member,

(2) No business other than that for which a meeting is convened shall b" considered at that meeting, except with permission of the Chairman of the meeting.

9- Chairman of the. meeting.—The Chairman, or in his absence the Vice- Chairman, if any, of the Corporation, the Standing Committee or the Medical Benefit Council, aa the case may be, shall preside at the meetings. In the event of the absence of both the Chairman and tho Vice-Chairrnan, if any the members present may elect one from amongst themselves to preside.

10. Quorum.—No business shall be transacted at any meeting unless " quorum of eleven members in the case of the Corporation, five members in the case of the Standing Committee and seven members in the case of the Medical Benefit Council, is present:

Provided that if at any meeting there is not a Miifficient number of member* present to form a quorum, the Chairman of the 'meeting may adjourn the meeting t" ,a date not later than seven days from the date of the original meeting and it shall thereupon be lawful to dispose of tho business at suoh adjourned meeting irrespective of tho number of members attending.

11. Disposal ol business.—Any business which requires consideration by tho Corporation, the Standing Committee or the Medical Benefit Council shall be considered at a meeting thereof:

Provided that the Chairman may, if he thinks fit, direct that the necessary papers may be referred for opinion to all members:

Provided further that the decisiou on any question which is so referred shall be acted upon only if the members unanimously agree thereto. If there Is a difference of opinion, the question shall be considered at a duly convened meeting of the Corporation the Standing Committee or the Medical Benefit Council as the case may be.

12. Proceedings of the meetings.—(1) The proceedings of each meeting showing inter-alia the names of the members present thereat shall be forwarded to each member of the Corporation, the Standing Committee or the Medical Benefit Council, as tho case may be, and to the Central Government as soon after the meeting as possible and in any case not less than seven days before (jhe next meeting.

(2) The minutes of each meeting shall be confirmed with euch modification* as may be considered necessary at the next meeting.

1&" Minule Books,—-(1) The minutes of a meeting of the Corporation, the Standing Committee and the Medical Benefit Council shall be kept in separate books (hereinafter referred to as minute books') and shall be signed by the Chairman of the meeting at which the proceedings are oonfirmed.

(2) A i;npy of the minutes so confirmed shall be forwarded to the Centra* Government within fifteen days from the date of such confirmation.

(3; The minute-books shall be kept open at the principal office of the Corporation during office hours on working da^ys for inspection free of charge by any member of the Corporation.

(4) The minute-book of the Medical Benefit Council shall be kept open at the principal office of the Corporation during office hcurs on working days tor inspection free of charge by any member of the Medical Benefit Counoil.

14. Powers and duties ol the Medical Benefit Council.—The powers *nd

duties of the Medical Benefit Council shall be—

(!) to advise the Corporation in regard to the constitution, setting up, duties and powers of the Eegional and Local Medical Benefit Councils;

(2) to make recommendations to the Corporation in regard to—

(i) the scale and nature of medical benefit provided at hospitals, dis- pensaries, clinics and other institutions and the nature and the extent of the medicines,, staff and equipment which shall be main tained at such institutions;

(ii) the medical formulary for use in connection with the medical benefit provided under the Act;

(iii) forms of medical certification, statistical returns, registers and other medical records;

(iv) measures undertaken foi' the improvement of the health and welfare of insured persons and the rehabilitation and re-employment of insured persons, disabled or injured;

(8) tfe advise the Corporation on any matter relating to the professional conduct of any medical practitioner employed for the purpose of providing medical benefit under the Act.

CHAPTEB III 15. Salaries, allowances and conditions of service ol the Principal Officers.— (1) The Principal Officers shall receive such salaries as may be determined by the Centra] flovernment.

(2) The Principal Officers shall recoive dearness allowance, compensatory (oitv allowance), house rent and other allowances at such rates as may be sanctioned for the officers of the Central Government on similar salaries in tb" localities where they arc stationed.

(8) The Principal Officers shall he entitled to leave and leave salary under • the model leave terms which may from time to time be made applicable to the Central Government servants on contract on similar salaries.

(4) The Principal Officers shall be entitled to travelling allowances for journeys performed in the service of the Corporation on the scale provided for in the rules supplementary to the Fundamental Rules applicable to the class of officers to which the Central Government may deolare them to correa pond in status.

(5) The Princ'pal Officers shall be entitled to the benefits of the Employees State Insurance Corporation Provident Fund established under rule 47.

(6) Notwithstanding anything contained in sub-rules (1) to (5), the pay, allowances and other conditions of service of a Principal Officer if he is a person already in tho service of the Government Bnall be such as may be determined by the Central Government in each individual case.

16. Powers and duties of the Director General.—The powers and duties of the Direotor General shall be—

(i) to act as the Chief Executive Officer of the Corporation;

(ii) to co-ordinate and supervise the work of the other Principal Officers;

(iii) to convene, under thy orders of the Chairman, meetings of the Corporation, the Standing Committee and the Medical Benefit Council in accordance with tlia Act and Rules and to implement the decisions reached at the meetings;

(iv) to enter into contracts on behalf of the Corporation in accordance with the Act or the Rules or Regulations made thereunder Or the general or special instructions of the Corporation or the Standing Committee ;

(v) to furnish all returns and documents required by the Act or the Rule* to be furnished to the Central Government and to correspond with the Central Government, the Provincial Governments and the States upon all matters concerning the Corporation; and (vi) to undertake such other duties and to exercise such other power* as may from time to time be entrusted or delegated to him.

17. Powers and duties of the Insurance Commissioner.—The powers and duties of the Insurance Commissioner shall be—•

(i) to assist the Director General; (ii) to arrange, subject to the control of the Director General, for the establishment of Insuranoe and Regional offices, for the admini* tration of the Act;

(iii) to arrange for the inspection of subordinate offices, (iv) to investigate all complaints referred to by Regional Boards and Local Committees; and

(v) to undertake such other duties and to exercise such other power* as may from time to time be entrusted or delegated to him.

18. Powers and duties of the Medical Commissioner.—The powers and duties of the Medical Commissioner shall be—

(i) to supervise, direct and co-ordinate the working of the medical organisation of the Corporation;

(ii) to advise the Medical Benefit Council aud the Corporation on thw standard of medical benefit to bo provided under the Aot; (iii) to advise the Provincial Governments and employers in regard to the lay-out, planning and construction of hospitals and dispensaries and in regard to sickness recording;

(iv) to suggest measures for improving health conditions hi areas where the Act is in force;

fvj to oonduct such research as may be ievised by the Medical Benefit Council;

vi) to arrange, for the inspection of hospitals, dispensaries, clinic and other institutions where medical benefit under the Act is provided by the Vrovinoinl Governments, the Corporation or the employers;

(vii)-to udvisu the appropriate Government and the Corporation regarding the adequacy of medical treatment provided by the factories or establishments applying for exemption under Section HO;

(viii) to investigate complaints made by insured persona with regard to medical benefit and to bring to the notice of the Medical Benefit Council such cases as may be required to be investigated by the Council;

(tx) to collect and correlate records of sickness and accident and to devise forma and registers for keeping the reconla of insured persons by Institutions where medical benefit under the Act is provided; and

(xj to undertake such other duties and exercise euch oilier powers a& may from time tu tune bi_ entrusted or delegated to him.

19. Powers and duties of the Chief Accounts Officer.—The powers and duties of the Chief Accounts Officer shall be—•

(i) to maintain the accounts of the Corporation and to arrange for the compilation of accounts by tho collection of returns from the Centres and Regions;

(ii) to prepare the Budget of tho Corporation; (iii) to arrange "for interim! audit of the accounts of the Centres and Regions and of the receipts and payments thereat;

(jv) to make recommendations for the investments of the Corporation;

and

(v) to undertake HUCII other duties and to exercise such other powers as may from time to time be entrusted or delegated to him.

20. Powers and duties ol the Actuary.—The powers and duties of the Actuary shall be—>

(i) to collect, compile and analyse statistics relating to the working ol the Corporation;

(-ii) to advise tho Director General on all actuariul and statistical prob- lems relating to the working of the Corporation;

(iii) to assist, the Insurance Commissioner in the administration of cash benefita granted under the Act;

(iv) to detect and prevent excessive claims; and (v) to undertake such other duties and exercise such other powers aa may from timn to time be entrusted or delegated to him.

CHAPTER IV

21. Banfe or banks for depositing the Fund.—(1) All moneys accruing or payable to the Fund shall be received by the Chief Accounts Officer or such other officer an the Corporation may authorise in this behalf. The amount HO received shall as Boon as practicable be acknowledged by a receipt in Form and deposited in the Imperial Bank of India or such scheduled bank, aa mav be approved for this purpose by the Central Government, to the account of tb.9 Fund.

(2) The receipt book in Form I shall be numbered serially by machine and the unused forms shall be kept in the cuBtody of the Chief Accounts Officer or such other Officer of the Corporation as may be authorised by the Corpo- ration in thiB behalf.

22. Procedure for crediting moneys to the Banks.—(1) All moneys accruing Or payable to the Corporation shall be credited to the approved bank and noi utilised directly for any purpose.

(2) The bank or banks shall be required at the end of every calendar month to furnish to the Corporation or such officer as may be authorised by it in thiA behalf, a statement of the, amounts deposited in and withdrawn from the Fund during the month. These, statements shall be examined b\ the Director General by the fifteenth of the following month.

23. Purpose and manner ol payment out of the Fund (1) The accounts of the Fund shall be operated on by tho Chef Accounts Officer or such other officer aa may be authorised by the Corporation in this behalf.

(2) No payment shall be made by the bank or banks out of the Fund except on a cheque signed by the Chief Aocouiitu Officer or any other officer authorises by the Corporation.

(3) Any payment in excess of one hundred rupees shall be made by meani of a cheque signed as aforesaid and not in any other way.

(4) No payment shall be mudo out of the Fund unless the expenditure n covered by a current budget grant. '

24. Circumstances In which cheques may be drawn.—Before any person authorised under rule 23 signs a cheque, he shall satisfy himself that the sum for which the cheque is drawn ia—

(i) required for a purpose or work specifically sanctioned by the proper authority and covered by a, current budget grant; and (ii) required for any payment referred to and speoified under section 28.

28. Acquisition of property.—Subject to the provisions of rule 29 and such conditions as may, from time to time be laid down by the Corporation, tha Director General may, for the purposes of this Act, acquire on behalf of the Corporation movable or immovable property:

Provided that sanction of the Standing Committee shall be required for th" exchange of any immovable property, for the talcing of any property on leaw for a term exceeding twelve months, or for the acceptance of any gift or bequest of property burdened by an obligation.

NOTE.—The "anction of the Standing Committee may bo j(iven either generally or for

any clas" of caned or specially for any particular c u t.

26. Disposal of property.—Subject to the provisions of rule 29 and euch conditions as may be laid down by the Corporation from time to time, the Director General may—

(i) dispose of by sale or exchange, niiy movable property belonging tc the Corporation, the value of wnioh does not exceed ten thousand rupees in each case, or grant for any term not exoeeding twelve months a lease of any immovable property belonging to the Corporation;

(ii) with the sanction of the Standing Committee, leuse sell or other- wise dispose of any movable or immovable property belonging *r the Corporation.

NOTE,—The sanction of the Standing Cuinmittei- iii,*- bn given oither generally or for Uly claat of cases or specially for any particular case.

27. Investment, transfer or realisation ,of the Fund.—(1) All moneys oelonging to the Fund which are not immediately required for expenses properly defrayable under the Act, may, Bubject to the approval of the Bfauding Com- mittee, be invested by the Director General—

(i) in Government Securities, or

(ii) as fixed deposit in the Imperial Bank of India.

(2) Moneys belonging to the Fund shall not fie invested in any other manner except with the prior approval of the Central Government.

(3) Any investment made under ibis rule mny, subject to the provisions of sub-rules (1) and (2), be varied, transposed or realised from time to timd.

Provided, however, that if such variation, transpositions ot- ^ nlisation is likely to result in a loss, the prior approval of the Central Government shall be obtained.

(4) The Central Government may, at any time, direot the vacation in part or in whole, or prohibit, investment in any security or class of securities or any land or building.

;

(5) All dividends, interest or other sums received in respect of any invest- ments shall, BB soon as possible after receipt, be paid into or credited to the account of the Fund.

(6) The expenses of or the loss, if any, arising from uny Investment shall be charged to the fund and tho profit if any, from the uale of any investment shall also accrue to the Fund.

(7) Th" approval under Bub-rules (1) and (2) of the Standing Committee or the Central Government, as the oase may be, may be given with or without any conditions either generally or in any particular oase.

28. Railing and repayment of loans.—(1) (i) The Corporation may, in pur- suance of a resolution passed at a meethg of the Standing Committee, and with the prior approval of the Central Government raise loans for tbe purpose* •f the Act.

(ii) In particular and wilhout prejudice to the generality of the foregoing power, the Corporation may raise loans,—

(a) for the acquisition of land and/or the raising of buildings thereon; or

(b) to repay a loaa raised under this rule; or

(c) for any other purpose approved by the Central Government.

(2) All loans under this rule shall be obtained—

{i) from the Central Government on such rates of interest and such terms aa to the time and method of repayment "a the Central Government may specify; or

(ii) with the approval of the Central Government, from the Reserve or the Imperial Bank of India.

NOTB.—The approval of tha Central Government may be given, with or without any

conditions, cither generally or for any particular ca*e.

(3) Where a loan is obtained from the Reserve or the Imperial Bank of India as provided in Clause (ii) of sub-rule (2), the Corporation may, witk the approval of the Central Government, grant mortgages of all or any of the property vested in it for securing the repayment of the suma so advanced with interest.

(4). All payments due from th" Corporation for interosfc on and repayment of loans shall be made in such manner und at such times as may have been agreed upon.

Provided that the Corporation may apply any sums which can be so applied, in repaying any amount due in respput of the principal of any loan although the repayment of the same may not be due.

(5) No expenditure incurred out of a loan shall be charged by the' Corpora- tion to cnpital, except with the previous sanction (or under the direction) of the Central Government.

(6) The Corporation shall submit to the Central Government an annual statement by the thirty-first of January each year showing the loans raised and repayments made during Ihe preceding year/

29. Procedure lor execution of contracts.—(1) The Corporation may enter into and perform all such contracts as it may consider necessary or expedient for carrying into effect the provisions of the Act.

(2) Every contract made ujdor or tor any purpose of the Act ehall be mada an behalf of the Corporation—

(i) by the Director General; or (ii) subject to such conditions as it may specify, by such member or officer of the Corporation as it may authorise:

Provided that the prior sanction of the Standing Committee shall be obtain- ed in respect of any contract involving an expenditure exceeding ten thousand discharged:

(8) Every contract entered into by any person as provided in sub-rule (2) shall be entered into in such manner and form as would bind him if it were made on his own behalf and may in like manner und form be varied or discharged:

Provided that the common or official seal, as the case rray be, of the Cor- poration shall be affixed to every contraot.

30. Seal.— (1) The common seal of the Corporation shall remain in the custody of the Director General and shall not be affixed to any instrument except in the presence of the Director General or two members of tlie Stand- ing Committee, and the Director General or the said two members shall Bign the contract in token of tht fact that the same waa sealed in hia or their presence.

(2) The Corporation shall have for use at each of suoh other of its office* QH it may specify, an official Beal which shall he a /acsjmtla of the common •eal of the Corporation with the addition of the name of the office where it is to be used.

(8) The official seal shall not be affixed to any instrument fxeept in the pre- sence of such person or persons as the Standing Committee may authorise in this behalf and such person or persons shall sign the instrument in token of the fact that the same ""vas sealed in his or their presence.

(4) An instrument to which an official seal is duly affixed shall biad the Corporation as if it had been Healed with the common seal of the Corporation.

CHAPTER V

31. Preparation and submission ol annual Budget estimate!.—(1) The Budget estimates of the Corporation for each financial year beginning on the first ol April and ending on the thirty-first of March next shall be prepared by the Chief Accounts Officer in such form as the Central Government may, from time to £ime, direct and shall be submitted with his recommendation* by the Director General to the Standing Committee for approval at a meeting of the 8tanding Committee to be held before the first of September of the preceding year.

(2) A copy of the budget estimates shall be sent to each member of the Standing Committee and of the Corporation by registered post at least tea dear days before the meeting of the Standing Committee or the Corporation at which these estimates are to be considered.

(8) The Standing Committee ehall consider and approve the budt^et estimate!

with such changes as it may consider necessary.

(4) The budget estimates as approved by the Standing; Committee shall b" placed before a meeting of the Corporation to be held before the fifteenth of October of the preceding year.

(5) Ihe hudget estimate aa pawed by the Corporation shii'l be (njuienticatecl by affixing the common seal of the Corporation and shall bs submitted to tha , Central Government under section 82, not later than the first of November next following.

(6) It shall be open lo the Central Oover imeat to make such alterations in the budget estimates as may he considered necessary lief ore according approval.

(7) The budget estimates as finally adopted by the Corporation and as approved by the Centra) Government shall be placed before the Cential Legis- lature by the administrative Ministry concerned and published in the Official Gazette aa soon as possible nfter the Central Government Budget estimates have been approved by the Legislature.

32. Supplementary estimate.—The Standing Committee may cause a supple- niontary estimate to be prepared and submitted to the Corporation, if in res- pect of any fi lanoial year further expenditure is likely to be ircurred. Every " such supplementary estimate shall be considered and sanctioned by the Cor- poration and submitted to the Central Government in the fifme manner as if it were an original annual eHtiinate, lot later than the fifteenth of February of the financial year to which it relates. The provision of ruin RI shall no far as may be, apply to such supplementary estimate,

33. Reappropriatlon.— (1) If the Director General finds in the course of the year that there is likely to be an excess of expenditure over the sanctioned budget estimate under any head, he- shall examine the allotment under oach head of the budget estimate with the object of discovering probahie savings under any other head and effecting u reapp'ppriation. Where such re- appropriation is feasible he may sanction the. reappropriation subject to such condition!) as may be laid down by the Central Government from time to time.

(2) Funds shall not be reappro|>riated to meet expenditure on a ^new ser- vice not contemplated In the budget- estimates except with ihe prior approval of the Central Government.

(8) No reappropriation shall be. permitted between the grant sanctioned for administrative expenses, two thirds of which shall be met by the Cectral Gov- ernment, and a grant sanctioned for any other expenditure.

34. Maintenance of accounts—The Corporation shall maintain complete and acourate accounts in Huch form as the Standing Committee may, with the approval of the Central Government, specify from time co time. The books shall be balanced on the thirty-firRt of March each year.

30. Revenue Accounts.—The Corporation shall prepare Revenue Accounts tor the financial yoar ended on the thirty first Maroh and Balance Hheet aa on the thirty-first March, by the fifteenth of May:

Provided that the Corporation may, and if so required bv the ^T^ntral Gov- ernment shall, cause to br prepared the Revenue Accounts aid the Balance Shoot for any other peri.. I or an on any other date.

30 Appointment of auditors—The Central Government shall, as soon after foe close of each finnn.-inl year as possible and in any ease ~iot hiW than the thirtieth of April next, appoint auditors tn audit the accounts for the financial year then ended and shall notify their appointment to the Cmpomt=or> and in the official Gazette.

a7. Production ox accounts before the auditors.—The annual account* shall be Bet out and produced before the auditors for scrutiny on or before the thirty- first of May each year following the close of the finaioial year to which ih"j relate, '

38. Powers of auditors.—The Corporation shall submit all account* to th" auditors SB required by them. The auditors may—

(i) by written notice, require the production before them or before any officer subordinate to them, of any document which they may consider necessary for the proper conduct of their uudit; (ii) by written notice, require any person accountable for, or havtn| the custody or control of, any such document, tc appear in person before them or before any officer subordinate to them; and (iii) require any person so appearing before them or before any offlew subordinate to them to make and sign a declaration with respect to such document or to answer any question or prepare and submit any statement,

39. Heport of auditors.—The auditors shall report on the annual accounts V> the Corporation on such date and in such form as the Central Government may specify in this behalf und they shall state whether ill their cpinioa tb" Balance Sheet is a full and fair Balance Sheet containing all necessary parti- culars and properly drawn up so as to exhibit a true and correct view of the state of the Corporation's affairs und in case, they have called for any explana- tion or information from the Corporation or any of its officers whether it has been given and whether it is satisfactory.

40. Consideration of report of auditors -Thu annual accounts together with the auditors' report thereon shall be considered by the Standing Committee and shall, together with an annual report on the work and activities of the Corporation, be placed for adoption at a meeting of the Corporation to be held before the fifteenth of October following the close of the financial year concerned,

41. Authentication of annual accounts and reports.—The annual account! and reports wa adopted by the Corporation shall be authenticated by affixing the common seal of th^ Corporation and four copies thereof shall be submitted to tho Central Government not Inter than the first of November next following.

42. Ooat of audit.—Tho cost of audit shall be paid by the Corporation by such date as may b

43. Publication of accounts.—The Corporation shall publish the annual accounts and the auditors' report thereon together with replies to each item included in the report within three months of their submission to the Central Government.

44. Impropriety or irregularity in accounts.—(1) The auditors shall nubmit to the Corporation and the Central Government a separate statement, if necessary, i*f in regard to—

(i) any material impropriety or irregularity which they may observe in thev expenditure, or in thn recovery of moneyB due to, o>- in the accounts of the Corporation; or

(ii) any loss or waet>' of money or other property owned by or vested in the Corporation which has been caused by neglect or misconduct, with the names of the persons -who in their ,-pinion arc directly or indirectly responsible for such loss or waste.

(2) I he OfoUJUmg (Jouinuiteo siiau loruiw.tn rtmiudy any ueieofc or ure#u- l*tity thai may tic pointed out by tne auditors tind snail report to ttie Geatral (ioverniutint We ucuon tukun by it thereon within three inouih-j of the reoeipt "f the report oi the auditora;

Provided that d there U a difference of opinion between the Standing Committee and thu auditors, or if the Standing Committee duej dot i-emedjr any delect or irregularity withiu a reasonable period, thu Co.iUal Government may, and on a itilereiico &p&ciiicaiJy made therelor shall, pu.*s such order* thereon as they think nt and thu standing Committee snail thereafter take action in accordance therewith within such time "as may be upecilied by the Central Government.

45, Disallowance oi expenditure incurred and suruaa.ge for losa or deficiency. —(1) The auditors, after giving the person concerned an .ipportunity t> Bubmit &u explanation, and after considering any such explanation, shall disallow uny lttm of account contrary to the provisio.js of the Act or of the ruleb or regu- . lutiona mado thereunder, and surcharge the same on the parson making or authorising the making of puyment of such account and shall charge against sny person, accounting, the amou it of any deficiency or loss incurred by the negligence or misconduct of that person, of of any sum which ought to have heen but is not brought into account by thnt person, and shall in every such ottse certify the amount due from such person.

(2) The auditors shall state ii writing their reasons for ev>ery disallowance, aurcharge or charge made by them and shall serve a certificate of the amount duo and a copy of the reasons for their decision on the person against whom the certificate is made and shall also furnish copies thereof to the Corporation and to the Central Government.

(8) The Central Government may oi their own motion, or on u reference by the Corporation or on ajapliootion of the aggrieved party made within three months after he has been served with a certificate, pass siu'h orders as they think fit, and the Corporation shall thereafter take action in acoorduuee there- with within such time as may be specified by the Central Government in any anae.

48. Recovery of amounts certified to be due.—(1) Every sum certified to be due from any person by the auditors, or if the certificate has been modified by the Central Government the sum shown to be due from such person in trie modified certificate, shall be paid by such person to the Corporatior within fcnree months after he has been served with the certificate of the auditors or within guch longer period as may be allowed by the Central Government; any such sum, if not so paid, shall be recovered as if it were an arrear of land- revenue.

•

•"

(2) Any sum or part of a sum so paid or recovered, the certificate In WBpect of which is Bet aside or modified, Rhall, as the ia3e may require, be wholly or partly refunded to the person who paid it.

OHAPTEE VI

47. EBtabllahment of Provident Fund.—The Corporation shall establish, maintain and contribute to a Provident Fund called the Employees' State Insurance Corporation Provident Fund (hereinafter referred to aa the Provident Fund) in respect of its employees othpr than those whose pervicea tm placed at the disposal of the Corporation by the Central or Provincial Government,

48. Administration of the Provident Fund.—The Provident Fund shall bo administered by the Standing Committee of the Corporation.

49. Framing ol Provident Fund Regulations.-—The Corporation may, Bubje"+ ti the previous approval of the Central Government, make regulation' to pro- vide for all other matters incidental to or necessary for the Proviilont Fund..

FORMS

FORM I.

(fee Rule 21)

Book Ro"oi">t Number. Number.

Receive"! from

tin sum of Tta

(in WOT 1B) on

aooount of

B*

Cla-ii A'''X>unts Offioer

•Enters 1 ia Oa,sb "Book Page Number..

Accountant.

Boot Receipt

Number NumiW

Rooeiv3'l from

the sum o^ Rs

(in wor Is) OB

a^oourt of Ra

Chief Aocounts OfBoer,

The Employees' Sta'o Iiwurattw Cor]ioi.ation.

SADASHIVA PBASAD, Dy. Secy.

PuBLTBHID ET TH1 MANAQSH OF PrBI.TCATIONa, DlLHI, IKDTA.

yuiMTED BY THS MAKAOKE, GoVKENMtt((T Of INDIA P B J S B, N EW DCLHI, INDIA.