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REGISTERED No.D-(D)--72

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 52 ] NEW DELHI. THURSDAY, AUGUST 12, 1976/SRAVANA 21, 1898

Separate paging is given to this Part in order that it may be filed as a separate compilation.

RAJYA SABHA

The following report of the Joint Committee of the Houses of Parlia- ment on. the Central and other Societies (Regulation) Bill, 1974, was presented to the Rajya Sabha on Thursday the 12th August, 1976: —

COMPOSITION OF THE JOINT COMMITTEE ON THE CENTRAL AND OTHER SOCIETIES (REGULATION) BILL, 1974.

Shri Prakash Veer Shastri—Chairman.

MEMBERS

Rajya Sabha

2. Shri Indradeep Sinha

| 3. Shrimati Maragatham Chandrasekhar

|4. Shri H. S. Narasiah

**5. Vacant

Appointed on 27th May, 1976, in the vacancies caused by the retirement of Shri N. G. Goray, Shrimati Maragatham Chandrasekhar and Shri Shishir Kumar from the membership of the Rajya Sabha on 2-4-1976.

Vacancy caused due to the death of Shri Niranjan Singh Talib on 28th May, 1976.

(1019)

G. Shri Parbhu Singh 7. Shri Irengbam Tompok Singh 8. Shri N. C. Buragohain 9. Prof. N. M. Kamble

•10. Dr. V. A. Seyid Muhammad

11. Shri Himmat Sinh 12. Shrimati Shyamkumari Devi 13. Shri G. Lakshmanan 14. Shri Mahadeo Prasad Varma

fl5. Shri Hamid Ali Schamnad

Lok Sabha

16. Shri Bashweshwar Nath Bhargava 17. Shri Chandulal Chandrakar 1H. Shri Ishwar Chaudhry 19. Shri Chhotey Lal 20. Shri C. Chittibabu 21. Shri Shivaji Rao S. Deshmukh 22. Shri Laxman Kakadya Dumada 23. Shri Genda Singh 24. Shri P. K. Ghosh 25. Shri Manoranjan Hazra 26. Shri Kamala Prasad 27. Shri N. S. Kamble 23. Shri Inder J. Malhotra 29. Shri Jagdish Narain Mandal ?0. Dr. Mahipatray Mehta 31. Shri Janeshwar Misra 32. Shri S. A. Muruganantham 33. Kumari Maniben Vallabhbhai Patel 34. Shri R. R. Patel 35. Shri T. A. Patil 36. Shri Banamall Patnaik 37. Shri Dhan Shah Pradhan 38. Shri P. V. G. Raju 39. Shri Ram Dayal 40. Shri P. Narasimha Reddy 41. Shri Bishwanath Roy

**42. Shri Nitiraj Singh Chaudhary

43. Shri N. Tombi Singh 44. Shri G. P. Yadav

tt45. Dr. (Smt.) Sarojini Mahishi

•Appointed on 9th January, 1976, in the vacancy caused by the resignation of

Prof, S. Nurul Hasan, from the membership of the Committee.

tAppointed on 27th May, 1978, in the vacancies cauoed by the retirement of Shri N. G. Goray, Shrimati Maragatham Chandrasekhar and Shri Shishlr Kumar from the- membership of the Rajya Sabha on 2-4-1976.

••Vacancy caused due to the death¹ of Shri Niranjan Singh Talib on 28th May,

1976.

ttAppointed on 20th December, 1974, in the vacancy caused by the resignation

of Shri Nitiraj Singh Chaudhary from the membership of the Committee.

REPRESENTATIVES OF THE MINISTRIES

(i) Ministry of Law, Justice and Company Affairs: —

(a) Shri S. K. Maitra, Joint Secretary and Legislative Counsel.

(b) Shri S. Ramaiah, Additional Legislative Counsel.

(ii) Ministry of Education, Social Welfare & Culture: —

Shri M. M. M'athur, Director (Internal Finance).

SECRETARIAT

(i) Shri Sudarshan Agarwal, Additional Secretary.

(ii) Shri R. K. Mazumder, Senior Legislative Committee Officei.

REPORT OF THE JOINT COMMITTEE

1. the Chairman of the Joint Committee to which the Bill* to provide for the incorporation, regulation and winding up of Central societies and declared Central societies and regulation of aided Union territory so- cieties and amalgamation of Central societies or aided Union territory societies with similar societies and for matters connected therewith or Incidental thereto, was referred, having been authorised by the Joint Committee to submit the Report on its behalf, present this Report of the Committee, with the Bill, as amended by the Committee, annexed thereto,

2. The Bill was introduced in the Rajya Sabha on the 14th May, 1974. The motion for reference of the Bill to a Joint Committee of the Houses was moved by Shri Nitiraj Singh Chaudhury, the then Minister of State in the Ministry of Law, Justice and Company Affairs, on the 6th Septem- ber, 1974 and was adopted by the House on the same day. (Appendix I).

3. The Lok Sabha concurred in the motion on the 9th September, 1974

(Appendix II).

4. The Message from the Lok Sabha was reported to the Rajya Sabha

on the 9th September, 1974.

5. The Committee held 51 sittings in all (Appendix Vi). Of these, four sittings were held at Bombay (13th to 16th January, 1975); and four sittings at Bangalore (3rd to 6th February, 1975) and three sittings at Calcutta (23rd, 24th and 26th February, 1975) for the purpose of hearing oral evidence from the representatives of the Societies/Organisations in the Western, Southern and Eastern regions of the country respectively.

The Committee also held three sittings at Hyderabad (3rd, 4th and 6th October, 1975) with a view to having a general discussion on the various provisions of the Bill.

6. At its first meeting held on the 23rd September, 1974, the Com- mittee decided that a Press Communique be issued inviting memoranda on the subject matter of the Bill from the various Societies which are wholly or mainly financed by the Central Government and also from other associations, organisations and individuals who may be interested in the subject matter of the Bill and advising them /to send the same to the Rajya Sabha Secretariat by the 30th October, 1974. The Committee also authorised the Chairman to decide after examining all the memo- randa, as to who might be invited to give oral evidence before it. The Committee desired that the Ministry of Education, Social Welfare and Culture may be asked to supply a complete list of the Societies /Organisa- tions which will come within the purview of the provisions of the Bill and other literature, if any, for use by the Members of the Committee.

T. Eight memoranda containing the views, comments, suggestions etc. on the subject matter of the Bill were received by the Committee from various Societies, and Organisations (Appendix III).

•Published in Part II, Section 2 of the Gazette of India Extraordinary, dated the 14th May, 1974.

8. The Committee heard oral evidence from the representatives of 96 Societies/Oragnisations (Appendix IV), including the Council of Scien- tific and Industrial Research, New Delhi, Indian Council of Agricultural Research Society, New Delhi, the 3 National Akademies viz., Sahitya Akademy, Lalit Kala Akademy and Sangeet Natak Akademy, Indian Council for Cultural Relations, New Delhi, Gandhi Darshan Samiti and Gandhi Smriti Sarniti.

The Committee also had the benefit of the views of Dr. L. M. Singhvi, an eminent jurist and Advocate General of Rajasthan and also of Shri F. S. Nariman, Senior Advocate, Supreme Court of India, on the various provisions of the Bill.

9. The Committee decided that the verbatim record of evidence

tendered before it should be laid on the Table of the House.

10. The Report of the Committee was to be presented to the House by the last day of the first week of the Ninety-first Session of the Rajya Sabha. The Committee was, however, granted extension of time, first upto the first day of the last week of the Ninety-third Session and then, upto the first day of the last week of the Ninety-fourth Session, then upto the last day of the Ninety-sixth Session and again upto the last day of the Ninety-seventh Session of the Rajya Sabha.

11. The Committee considered and adopted the draft Report at its

sitting held on the 5th August, 1976.

12. The principal changes effected by the Committee in the Bill and the reasons therefor are set out in the succeeding paragraphs of this Report.

Clause 2

The Committee evolved a new concept of 'deemed Central Society' in addition to the two other categories of societies enumerated in the Bill. The Societies specified in the Schedule will be the "deemed Central Societies".

During the course of the evidence tendered before the Committee by the representatives of various Societies, it was pointed out that the words 'substantially financed' appearing in the definitions of "aided Union terri- tory society", '-Central Society", "existing society" and in sub-clause (2) were vague and did not denote any precise amount of financial assist- ance to be given by the Government to a society. It was, therefore, decided to define the word "substantially financed".

The other amendments made in the clause are of clarifying and conse-

quential nature.

Clause i

The changes made in the clause are 61 clarifying nature" and the broad objectives underlying the establishment of the Central Societies have been elaborated.

Clause 5

The Committee has included by way of illustration two other social objects for which a Central society may be established. The raison d'etre for the addition is to focus attention on the need to provide for welfare of women, children and handicapped persons.

Clause 6

Many witnesses who tendered oral evidence before the Committee expressed the view that it would only be fair to a society if it was afford- ed an opportunity of being heard before the Central Government makes any alteration in its memorandum or rules and regulations. A provision to that effect will be in consonance with the principles of natural justice. The proviso added to sub-clause (4) reflects the above view which the Committee accepted.

The second change made in the clause by the addition of sub-clause (5) enables a Central society to effect changes in its Memorandum etc. subject, however, to the approval of the Central Government.

The Committee felt that adequate representation should be given to persons belonging to Scheduled Castes and Scheduled Tribes on the managements of the Societies. A provision to that effect has been incor- porated in the Clause.

Clause 7

The entire clause has been redrafted in view of the acceptance of the concept of 'deemed Central society' under Clause % The other changes made in the redrafted clause are of a consequential nature and relate to the safeguards that have been provided for the employees of a 'declared Central society' to opt out of the service of the Society before the date of the declaration.

Clause 8

In the evidence tendered before the Committee, some witnesses felt that the time limit of thirty days specified in the clause for presentation of the memoranda, rules and regulations and subsequent alterations made thereto by a society to the Registrar might not be adequate and suggested that the period should be extended to sixty or at least forty-five days. Agreeing with the suggestions, the Committee has extended the time limit from thirty to forty-five days.

The Central Government has also been empowered to present for re- gistration, after the expiry of the said period of forty-five days, the memo- randa, rules and regulations of a society, if a society fails to present with- in Jhat period the said documents for registration.

The other amendments made in the clause are of a clarifying and consequential nature.

Clause 9

A proviso has been inserted in sub-clause (1) with a view to ensuring adequate representation to persons belonging to Scheduled Castes/ Scheduled Tribes on the governing bodies of the Societies. The other amendment made in the clause is of a clarifying nature.

Clause 10

The Committee feels that there might be practical difficulties in complying with the provision under sub-clause (2) whereunder a society is required to file annually a list of members of the governing body of the society with the Registrar within fourteen days from the da,te of the annual general meeting of a society. The Committee has accordingly extended the time limit from fourteen to thirty days by suitably amend- ing the sub-clause.

Clause 11

A number of witnesses who appeared before the Committee stated that the flexibility and freedom of action which were necessary for the run- ning of institutions and which the societies enjoyed would be curtailed if they were required to get their bye-laws approved by the Central Gov- ernment as proposed in the clause. They also pointed out that the pro- vision of getting prior approval of the Central Government might delay the framing of the bye-laws and thereby impede the efficient functioning of the institutions. They, therefore, pleaded that for the smooth work- ing of these societies, the provision of obtaining prior approval of the Central Government in the matter of framing of bye-laws should be deleted from sub-clause (1).

The Committee felt that there is force in the contention made by the witnesses. Considering that the clause already provides that the bye-laws shall not be inconsistent with the provisions of the Act or of the memo- randum and rules and regulations of the Central society, the Committee does not consider it necessary to make additional provision of prior ap- proval of the bye-laws by the Central Government. The Committee has, therefore, deleted the phrase "with the previous approval of the Central Government'' occurring an sub-clause (1).

The Committee has also added a proviso under sub-clause (1) with a view to ensuring the regulation of the recruitment and conditions of service of persons appointed to any service or post under the Central Society and for the reservation of posts in such service for persons be- longing to Scheduled Castes and Scheduled Tribes.

Clause 12

According to the provision contained in sub-clause (2)(c) every Cen- tral society shall at its annual meeting consider the budget of the society for the ensuring year. This, in the opinion of the Committee, would invariably involve the holding of annual general meeting of every,society

either in the month of October or November, which might create certain practical difficulties. Moreover, the Committee understands that according to the practice prevailing in this regard, the budget of a society is considered by its governing body and is generally not placed before the General Body. Taking these factors into account, the Com- mittee has deleted the sub-clause.

With a view to keeping the Central Government informed about the working of the societies, a provision hag been made by inserting a new sub-clause (3) making it obligatory for every Central society to forward a copy of the minutes of the proceedings of every meeting of its Managing Committee and minutes of every meeting of the society including its annual general meeting to the Central Government within thirty days from the date of the meeting.

Clause 14

Sub-clause (2) inter alia provides that for utilisation of the reserve fund created under sub-clause (1) the society will have to obtain approval of the Central Government. As the surplus mentioned in sub- clause (1) would normally arise only when a non-lapseable grant is not fully utilised, it was represented to the Committee that the utilisation of reserve fund need not require any approval of the Central Government specially when such fund can be utilised for certain denned purposes only. The Committee also observed that according to the provisions contained in clause 36(2)(c) a society would be able to use such a reserve fund only for the purposes and in circumstances as may be prescribed by rules made by the Central Government in this behalf. The Committee, therefore, feels that no useful purpose would be served by retaining the expression "with the approval of the Central Government" and has accordingly omitted the said words.

Clause 18

The Committee is of the view that in the matter of audit of accounts of the Central societies, the Comptroller and Auditor General should have, as far as practicable, the same rights and privileges and authority as he enjoys in the matter of audit of Government accounts. The clause has been redrafted accordingly.

Clause 25

The Committee is of the opinion that the Central Government should have the power of appointing a Review Committee to review the work and progress of any Central society, declared Central society or aided Union territory society and to enquire into the affairs of any such society and take such action and issue such directions as it may deem necessary.

The Committee is also of the opinion that when an inspection or enquiry into the affairs of a society is held, the concerned society should be given an opportunity of being heard at such inspection or enquiry

and that the results of such inspection or enquiry should then be com- municated to the managing committee of the society who in turn should intimate to the Centra] Government the action taken or proposed to be taken upon the results of such inspection or enquiry.

The clause has been redrafted with a view to achieving the above objective.

The Committee deliberated at length on the proposal made by several Members for the appointment of Parliamentary Committee to review the working and progress of the Central societies from time to time. The Committee strongly feels that such a Committee would enable Parlia- ment to keep a close and constant watch on the proper functioning of the societies. The Committee also took note of the fact that since large sums of public money were being given every year to the societies by way of grants, loans etc., it was only appropriate that the societies were made directly accountable to Parliament than through the departments under whose administrative control they were working at present.

The practical difficulties in the appointment of such a Committee were explained by the representative of the Government in the Com- mittee. The Committee, accordingly, accepted Government's conten- tion and amended the clause accordingly.

However, the consensus reached by the Committee was that when- ever such 'Review Committees' as are contemplated were appointed by the Central Government, Members of Parliament should be associated with them.

Clause 26

The provision for removal from office of one or more members of the Managing Committee of a Central society, declared Central society or aided Union territory society has been omitted as the Committee felt that such a provision might act as a deterrent to men of eminence to associate themselves with the affairs of such societies.

Clause 27

The substitution of the words 'an inspection or inquiry' for the exist- ing words 'an investigation' in sub-clause (1) is consequential to the changes made by the Committee in Clause 25.

New Clause 34

The clause has been added with a view to giving protection against civil or criminal proceedings to the Central Government or any other person for anything done or intended to be done in good faith undei the provisions of the Act.

New Clause 35

With a view to ensuring proper Parliamentary control over the affairs and activities of Central societies, deemed Central societies and declared Central societies, a new clause, namely clause 35, has been inserted pro- viding for the laying, by the Central Government, of an annual report with regard to the affairs and activities of such societies before both Houses of Parliament.

13. The other changes made in the bill are of consequential nature.

14. The Committee recommends that the Bill, as amended by the

Committee, be passed.

NEW DELHI;

'August 12, 1976. PKAKASH VEER SHASTRI,

Chairman.

THE CENTRAL AND OTHER SOCIETIES (REGULATION)

BILL, 1974

ARRANGEMENT OF CLAUSES

PART I

PRELIMINARY

CLAUSES

1. Short title, extent and commencement,

2. Definitions.

3. Act to override the Societies Registration Act, 1860, and other enactments, etc.

PART II

ESTABLISHMENT, REGISTRATION AND INCORPORATION OF CENTRAL SOCIETIES

4. Establishment of Central societies.

5. Objects of a Central society. 6. Capital, members, memorandum and rules and regulations of a Central society.

7. Societies deemed, or declared, to be Central societies.

8. Registration of Central societies, etc.

9. Management of a Central society or declared Central society.,

10. Annual list of members of the governing body to be filed with the Registrar.

11. Power to make bye-laws.

12. Annual general meeting,

13. Fund of the Central society.

14. Reserve fund.

15. Subsidiary funds.

16. Provisions of sections 293, 2S5 and 314 of the Companies Act, 1956 to apply to Central society.

17. Books and records to be maintained by a Central society.

18. Audit of accounts.

19. Winding up of Central societies.

20. Indemnity.

PART III

SPECIAL PROVISIONS RELATING TO AIDED UNION TERRITORY SOCIETIES

21. Alterations, etc., in the memorandum and rules and regulatione to be filed with the Registrar of Societies.

22. Penalty for non-filing of annual list of governing body.

CLAUSES

PART IV

AMALGAMATION OF CENTRAL SOCIETIES AND AIDED UNION TERRITORY

SOCIETIES

23. Scheme for amalgamation of Central societies and aided Union

territory societies.

PAET V

POWERS or CENTRAL GOVERNMENT WITH REGARD TO CENTRAL SOCIETIES AND

DECLARED CENTRAL SOCIETIES AND AIDED UNION TERRITORY SOCIETIBS

24. Power of Central Government to issue directions, etc.

25. Powers of Central Government to appoint a Review Committee, etc.

26. Power of Central Government to prevent mismanagement.

27. Power of Central Government to take over the management of a Central society, declared Central society or aided Union territory society.

28. Contracts, etc., in bad faith may be cancelled or varied.

29. No right to compensation for termination of office or contract of

management.

30. Application of Act 21 of 1860.

31. Power of Central Government to cancel the order issued under

section 27.

PART VI

MISCELLANEOUS

B2. Penalty for embezzlement of society's property, etc.

83. Delegation of powers.

34. Protection of action taken in good faith.

35. Annual report by Central Government.

36. Power to make rules.

THE SCHEDULE.

BUI No, XIV of 1974

THE CENTRAL AND OTHER SOCIETIES (REGULATION) BILL, 1974

;As REPORTED BY THE JOINT COMMITTEE)

[Words underlined or side-lined indicate the amendments suggested

by the Committee; asterisks indicate omissions.]

BILL

to provide for the incorporation, regulation and winding up of Central

societies and declared Central societies and regulation of aided Union

territory societies and amalgamation of Central societies or aided

Union territory societies with similar societies and for matters con-

nected therewith or incidental thereto.

BE It enacted by Parliament in the Twenty-seventh Year of the Republic of India as follows: —

PART I

PRELIMINARY

   1.  (J) This  Act may be  called  the Central  and  Other  Societies  (Regula-    Short
tion)  Act, 1976.                                                                    title,
                                                                                     extent
    (2)  It  extends  to  the  whole  of  India  except  the  Siate  of  Jammu  and  and com-
Kashmir.                                                                              mence-
                                                                                     ment.

(3) It shall come into force on such date as the Central Government

Sflay, by notification, appoint.

(4) Nothing contained in this Act shall apply to—

(a) any institution or organisation established by a Central Act;

(b) a company within the meaning of the Companies Act, 1956. l of ¹⁹⁵⁶.

2, (1) In this Act, unless the context otherwise requires,—

Defini- tions.

21 of 1860.

(a) "aided Union territory society" means a society, whether registered under the Societies Registration Act, 1860 or not so regis- tered, which is or has been established in a Union territory at the instance, or in pursuance of a resolution, of the Central Govern- ment, and is wholly or substantially financed by that Government;

(b) "Central society" means a society established in pursuance of any notification made by, or resolution of, the Central Government, and is wholly or substantially financed by that Government;

(c) "declared Central society" means a society declared under sub-

section (2) of section 7 to be a Central society;

(d) "deemed Central society" means an existing society which is deemed, under sub-section (1) of section 7, to be a Central society. and, unless the context otherwise requires, any reference in this Act to a Central society shall be construed as Including a reference to a deertled Central society;

21 of I860.

(e) "existing society" means a society, body or other authority hav7ng^>bjects not confined to one State and in existence at the com- mencement of this Act, whether registered under the Societies Re- gistration Act, 1860, or not so registered, provided that it was estab- lished at the instance, or In pursuance of a resolution, of the Central Government;

(f) "managing committee", in relation to a Central society, means the body of persons to whom the management of the affairs of that society is entrusted under section 9;

(g) "memorandum", in relation to a Central society or declared Central society, means the memorandum of association of that so- cl"ty;

(fe) "notification" means a notification published in the Official

Gazette;

(i) "prescribed" means prescribed by rules made under this Act;

(j) "Registrar" means the person appointed or authorised under sub-section (1) of section 8 to register Central societies and declared Central societies, and includes a person who may be appointed or authorised to act as an Additional, Joint, Deputy or Assistant Regis- trar.

(2) An aided Union territory society, a Central society or an existing society, as the case may be, shall be deemed for the purposes of this Act, \o be substantially financed by the Central Government if the

financial assistance given, or to be given, to it, whether by way of grant, loan or otherwise, for the first financial year in which it is, or was, established, or for any financial year subsequent thereto, from the Consolidated Fund of India is not less than fifty per cent, of its total recurring expenditure for that financial year.

Explanation.—Where, in any financial year, any aided Union territory ,society, Central society or existing society, as the case may be, receives any (recurring income from any property acquired or constructed, or from any [activity undertaken, with any non-recurring financial assistance given to it by the Central Government and such income, or, such income together with any recurring financial assistance given to it by the Central Govern- ment for that financial year, is not less than fifty per cent, of its total recurring expenditure for the financial year aforesaid, such society shall be deemed, for the purposes of this Act, to be substantially financed by Jthe Central Government.

(3) Where any aided Union territory society, Central society or exist- ing society Is wholly or substantially financed by any Commission, body or other authority from finances obtained, by such Commission, body or other authority, from the Central Government, such aided Union territory society, Central society or existing society, as the case may be, shall be deemed, for the purposes of this Act, to be wholly, or, as the case fhay be, substantially financed by the Central Government.

(4) Where any aided Union territory society, Central society or exist- ing society is, or Is deemed under this Act to be, financed, wholly or sub- stantially, whether by way of grant, loan or otherwise, at the time of Its establishment or at any time thereafter, by the Central Govern- ment, or by any Commission, body or authority from finances ob- tained from that Government, such society shall continue to be deemed to be financed, wholly or substantially, as the case may be, by the Central Government irrespective of whether there has been any subsequent reduction or stoppage of such financial assistance.

(5) The Central Government may, by notification, declare that—

(a) an aided Union territory society or existing society is, for the purposes of this Act, substantially financed by it,

(b) a society established, or to be established, as a Central society is, or will be, for the purposes of this Act, substantially financed by it,

and on such declaration, it shall be presumed that the society referred to therein is, or will be, when established, substantially financed by the Central Government.

21 of i860.

3, The provisions of this Act shall have effect notwithstanding any- thing inconsistent therewith contained in the Societies Registration Act, 1860, or in any other law (other than this Act) for the time Being in force or in any memorandum of association, rules and regulations or any other instrument having effect by virtue of any enactment other than this Act.

Act to override the Societies Beglstra- tion Act, 1860 and oth^r enact- ment*, eta.

PART II

ESTABLISHMENT, REGISTRATION AND INCORPORATION OF CENTRAL SOCIETIES

Establish- ment of Central societies.

4. Where the Central Government is of opinion that for the advance- ment of the welfare of the general public or any section thereof, and, in particular, for the better organisation of the activities intended to cause, such welfare, including cultural, economic, educational, scientific, social, technological, recreational or vocational activities, it is necessary or expedient so to do, it may, by notification or resolution, authorise the establishment of one or more Central societies, with objects not confined to one State.

5. (1) A Central society shall have such objects as may be specified

in its memorandum.

Objects of a Central society.

(2) In particular, and without prejudice to the generality of the fore- going power, the objects of a Central society may relate to ell or any of the following matters, namely:—

(a) promotion of arts (including fine arts), literature, science or

culture;

(b) charity or other useful objects;

(c) diffusion of knowledge;

(d) public museums and galleries of painting and other works

of art, not financed by any State Government;

(") collection of antiquities;

(f) legal aid or advice to indicent oeraons:

(g) eradication of illiteracy or poverty;

(h) establishment and maintenance of institutions or organisa-

tions for the relief of the poor, old, infirm or disabled persons;

(i) establishment and maintenance of institutions or organisa-

tions for the relief of the victims of crimes or natural calamities;

(j) agencies and institutions for professional, vocational, or

technical training;

(k) promotion of special studies or research;

(Z)f promotion of scientific or technical assistance in the investi-

gation and detection of crimes;

(m) economic and social planning; social security and social

insurance;

(n) welfare of women, children and handicapped persons;

(o) welfare of the children or wards of the employees of the

Central Government;

(p) any other matter or public purpose which the Central Gov-

ernment may, by notification, specify.

6. (1) The Central Government may specify in the notification or resolution made under section 4, or in a subsequent notification or resolu- tion,—

(a) the capital of tha Central society and the manner in which,

such capital shall be subscribed;

(b) the names of the members of the Central society; and

Capital, members, memo- randum and rules and regu- lations of a Central society.

(c) the memorandum, of such society, which shall state—

(i) the name of the society, (n) the State in which and the address at which the regis-

tered office of the society is to be situated,

(iii) the main objects to be pursued by the society and the objects incidental or ancillary to the attainment of the main objects,

(iv) the names and addresses and occupations of persons to whom the management of the affairs of the society shall be en- trusted and such names shall include the name of at least one

member ol tne ticneamed Pastes or tocneauiea Tribes;

(ct) the rules and regulations of the Central society.

(2) The members specified in the notification or resolution referred to in sub-section (2) shall subscribe their names to the memorandum of the Central society, and, on such subscription of names, the Central society shall become established.

(3) The members specified in the notification or resolution, referred to in sub-section (1) and the members of the managing committee of the Central society shall, so long as they hold such office, form the general body of the Central society.

(4) The Central Government may, if it is of opinion, that for the better functioning of a Central society, it is necessary so to do, make, by notification, such alterations in its memorandum or rules and regulations as it may think fit:

Provided that no such alterations shall be made except after giving to the Central society a reasonable opportunity of making representa- tions in relation to the proposed alterations.

(5) Subject to the provisions of sub-section (4), a Central society

may also alter its memorandum or rules and regulations:

Provided that no such alteration shall have effect unless it is made

with the previous approval of the Central Government.

Societies deemed, or declared, to be Central societies.

7. (1) Each of the existing societies specified in the Schedule (being societies to which, having regard to the financial assistance given by the Central Government and the accountability of that Government to Parlia- ment, or the public interest, or both, the provisions of this Act ought to apply) shall, on and from the commencement of this Act, be deemed., for che purposes of this Act, to be a Central society.

(2) If, after the commencement of this Act, the Central Government

id satisfied.—

(a) that all or any of the objects of an aided Union territory society, or of any existing society which is wholly or substantially financed by that Government, are such as are specified in sub-section (2) of section 5; and

(b) that with a view to discharging its accountability to Parlia-

ment, it is necessary so, to do,

it may, by notification, declare such aided Union territory society or existing society, as the case may be, to be a Central society:

Provided that no such declaration shall be made except after giving to

the aided Union territory society or the existing society, as the case may

be, a reasonable opportunity of making representations in relation to the proposed declaration.

(3) On the commencement of this Act, every asset and every lia- bility, as on the date immediately preceding the commencement of this Act, of an existing society which is deemed, under sub-section (1), to be a Central society, shall become, respectively, the asset and liability oi such deemed Central society.

(4) On the declaration, under sub-section (2), of a society to be a Central society, every asset and every liability of such society, as on th€ date immediately preceding the date on which it is declared to be a Central society, shall become, respectively, the asset and liability of such declared Central society.

(5) For the purposes of sub-sections (3) and (4),—

(a) the assets of each deemed Central society, and the assets of each aided Union territory society or existing society which is declared, under sub-section (2), to be a Central society, shall be deemed to include all rights, powers, authorities and privileges and all property, movable and immovable (whether vested in the trustees, or deemed to be vested, for the time being, in the governing body of the society), cash balances, reserve funds, investments and all other rights and interests in, or arising out of, such property as were immediately before the commencement of this Act, or, as the case may be, the date on which such aided Union territory society 01 existing society is declared, under sub-section (2), to be a Centra] society, in the ownership, possession, power or control of the aided Union territory society or existing society, as the case may be, and al] books of account, registers, records and documents of whatevei nature relating thereto; and

(b) liabilities shall be deemed to include all borrowings, contin- gent liabilities and obligations of whatever kind subsisting imme- diately before the date of such declaration.

(6) (a) In the case of a deemed Central society, on and from the commencement of this Act, and, in the case of a declared Central society, on and from the date on which such society is so declared, everj officer or other employee of such society shall become an officer 01 other employee, as the case may be, of the deemed Central society, or, as the case may be, declared Central society, and shall hold his offict or service under the deemed Central society or, as the case may be declared Central society, on the same terms and conditions as would havt been admissible to him if such society had not been deemed by, 01 declared under, this Act to be a Central society, and continue to do sc unless and until his employment in the deemed Central society, or, ae the case may be, declared Central society, is duly terminated or until his remuneration, terms and conditions of service are duly altered by thf deemed Central society or the declared Central society:

Provided that nothing contained in this clause shall apply to an> such employee who has, by notice in writing, given to the Centra! Government on or before the date of such commencement or declara-

tion, as the case may be, an intimation of his intention of not becoming an employee of such deemed Central society or declared Central society, as the case may be.

(b) For the persons who, immediately before the commencement of this Act, or, as the case may be, the date on which a society is declared under sub-section (2) to be a Central society, were the trustees of any pension, provident, gratuity or, other like fund constituted for the officers or other employees of a society whether deemed, or declared under this Act, to be a Central society, there shall be substituted, in the case of a deemed Central society, on the commencement of this Act, and, in the case of a declared Central society, on the date on which such society is so declared, as trustees such persons as the Central Government may, by general or special order, specify.

14 of 1947

(c) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force, the transfer of the services of an officer or qther employee of a society to which the said Act applies, to a deemed Central society, or, as the case may be, a declared Central society, shall not entitle such officer or other employee to any compensation under any law for the time being in force, and no such claim shall be entertained in any court, tribunal or other authority.

(7) The Central Government may, if it is of opinion that it is neces- sary or expedient so to do for the better functioning of a deemed Central society, or, as the case may be, a declared Central society, by order, made after giving to such society, a reasonable opportunity of making representations in relation to the proposed action, specify such alterations as are, in its opinion, needed to be made in the memorandum or rules and regulations of the deemed Central society, or, as the case may be, declared Central society, and direct the concerned society to make the alterations so specified; and if the alterations specified by the Central Government are not made by the deemed Central society, or, as the case may be, declared Central society, within a period of six months from the date of receipt of the order, the Central Government may, by a further order direct that the specified alterations shall be deemed to have been made in the memorandum or rules and regulations of the deemed Central society, or, as the case may be, the declared Central society, and there- upon the memorandum or rules and regulations, as the case may be, of the deemed Central society, or, as the case may be, the declared Central society, shall stand altered accordingly.

(S) Subject to the provisions of sub-section (7), a declared Central society or deemed Central society may also alter its memorandum or rules and regulations:

Provided that no such alteration shall have effect unless it is made

with the previous approval of the Central Government.

(9) If, in the case of a deemed Central society, at the commencement yl this Act, or, in the case of an aided Union territory society or existing 3ociety, on the date on which such society is declared undeir this Act to ae a Central society, any suit, appeal or other proceeding of whatever lature in relation to the affairs or business of such society, is pending 3y or against the president, chairman, principal secretary or trustees of ;uch society, the same shall not abate, be discontinued or be in any way

prejudicially affected by reason of the deeming, or declaration, of such society to be a Central society or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the deemed Central society, or, as the case may be, declared Central society.

(10) The provisions of sections 11 to 20 (both inclusive) shall, so fai as may be, apply to a deemed Central society and also to a declared Central society as they apply to a Central society, and, any reference therein to a Central society shall be construed as including a reference to such deemed Central society, or, as the case may be, declarer! Centra, society.

Registra- tion Of Central societies, fltC.

8. (i) The Central Government may appoint such Registrars as it may

think necessary for the registration of Central societies and declared Cen-

tral societies, and may make regulations with respect to the duties of

such Registrars:

Provided that instead of appointing a Registrar, the Central Govern-

ment may authorise any officer or authority to function as Registrar.

(2) (a) In the case of a deemed Central society, the managing com- mittee of such society shall, within forty-five days from the commence- ment of this Act, and

(b) in the case of a Central society or a declared Central society, the managing committee of such society shall, within forty-five days from the date on which such society is established or, as the case may be, declared to be a Central society, present, for registration, to the Registrar—

(i) the memorandum of the deemed Central society or, as the case may be, of the Central society oir declared Central society, and (ii) its rules and regulations.

Explanation—For the purposes of this section, "memorandum and ru[Les and regulations" in relation to a deemed Central society or declared Cen- tral society, as the case may be, means the memorandum and rules and regulations, of such society as in force immediately before the commence- ment of this Act, or, as the case may be, the day on which such society is declared to be a Central Society.

(3) If the managing committee of a deemed Central society or, as the case may be, a Central society or declared Central society omits¹ or fails to present for registration before the Registrar the memorandum and rules and regulations of such society within the period, of forty-five days afore- said, it shall be lawful for the Central Government to present for registra- tion, after the expiry of the said period of forty-five days, the memorandum and rules and regulations of the deemed Central society or, as the case may be, Central society or declared Central society.

(4) If the Registrar is satisfied that all the requirements of this Act with regard to a deemed Central society, or to the establishment of a Central society, or the declaration of a society to be a Central society, as the case may be, have been complied with, and that it is authorised to be registered under this Act, he shall retain and register the memo- randum and the rules and regulations of such society.

(5) There shall be paid to the Registrar, for every such registration, such fee, not exceeding live hundred rupees, as may be> prescribed.

(5) On the registration of the memorandum and the rules and regu- lations of a deemed Central society or of a Central society or of a declar- ed Central society, the Registrar shall certify under his hand and seal that such society is incorporated.

(7) From the date of incorporation mentioned in the certificate of in- corporation, the deemed Central society or the Central society or the declared Central society, as the case may be, shall be a body corporate by the name contained in its memorandum, having perpetual succession and a common seal with pdwer, subject to the provisions of this Act, to acquire, hold and dispose of property, and to contract, and may sue and be sued by the said name.

(8) Every alteration in the memorandum or rules and regulations of a deemed Central society, a Central society or declared Central society, made in accordance with the provisions of this Act, shall be filed with the Registrar within forty-five days from the date on which such altera- tion is, or is deemed to have been, made.

21 of i860.

(.0) On the incorporation of a deemed Central society, or, as the case may be, a declared Central society, such society shall, if it is registered under the Societies Registration Act, 1860, cease to be governed by the provisions of that Act.

9. (1) The management of the affairs of a Central society shall be ini- tially entrusted by the Central Government to the body of persons spe- cified in the notification or resolution referred to in sub-section (1) of section 6, and thereafter the management of the affairs of a Central so- ciety shall be entrusted to such body of persons as may be elected or nominated in accordance with the rules made by the Central Govern-

Manage- ment ot a Central society or dec- lared Central society.

ment in this behalf:

Provided that the persons so nominated shall include at least one

member of the Scheduled Castes or Scheduled Tribes.

(2) The management of a deemed Central society or, as the case may be, a declared Central society shall be carried on in accordance with the bye-laws of that society.

10. (1) Every society which is incorporated under this Act shall, once in every year, file with the Registrar a list of the names, addresses and occupations of persons who are entrusted with the management of the affairs of such society.

(2) The list referred to in sub-section (1) shall be filed on or before the thirtieth day on which, according to the bye-laws of the concerned

Annual list of members of the governing body to be filed with the Registrar.

soci"ety7!ne""annual general meeting of the society is, or ought to have been. held.

Power to make bye-law§. 11- (1) A Central society may make * * * bye-laws in accordance with which the affairs of- such society would be conducted and such bye-laws shall provide for the regulation of the recruitment and

conditions of service of persons appointed to any service or post under

the Central society and for the reservation of posts in such service for the members of the Scheduled Castes and Scheduled Tribes:

Provided that such bye-laws shall not be inconsistent with the provi-

sions of this Act or of the memorandum and rules and regulations of the Central society.

(2) A Central society may, in like manner, add to, omit, modify or

otherwise amend any bye-law made by it.

Annual general meeting.

12. (1) Every Central society shall hold for each year, in addition to any other meeting, an annual meeting as the annual general meeting— (a) of its general body, where th? General body has been spe-

cified by the Central Government, or

(b) of its managing committee, where no general body hai

been specified by the Central Government, (2) The Central society shall, at its annual general meeting, consider

the following matters, namely: —

(a) the report of the activities of the Central society for the year immediately preceding the year in which the annual general meet- ing is, or ought to have been, held (hereinafter referred to as the "preceding year");

(b) the audit report and audited accounts and balance-sheet of

the Central society for the preceding year;

(c) any other matter of which notice has been given to the memoers of the general body or of the managing committee, as the case may be.

(3) Every Central society shall forward to the Central Government the minutes of the proceedings of every meeting of such society, including its annual general meeting, as also the minutes of the proceedings of every meeting of its managing committee and such minutes shall be forwarded within thirty days from the date on which the meeting to which the minutes relate was held.

13. (1) Every Central society shall establish its own fund.

Fund of the Central society.

(2) All the income of a Central society, and every contribution received by it, whether from its members or from the Central Govern- ment or any State Government or from any other source, shall be cre- dited to the fund established under sub-section (1).

(3) All expenses of the Central society shall be met out of the fund

established under sub-section (1).

Reserve fund.

14. (1) Every Central society shall have a reserve fund, to which shall be credited, at the end of every year, any surplus left after meet- ing its expenses.

(2) The reserve fund shall be utilised by a Central society * * *

for such purposes and in such manner as may be prescribed.

15. A Central society may establish such other subsidiary funds as

Subsi- diary

may be necessary for the efficient management of such society.

i or 1956.

16. The provisions of sections 293, 295 and 314 of the Companies Act, 1956, shall, as far as may be, apply to a Central society as if such society were a company formed and registered under the Cornpariles Act, 1956. and any reference therein to directors or Board of directors shall be construed as including a reference, respectively, to the members and managing committee of a Central society.

Provisions of sectlonfl 293, 295 and 314 of the Compa- nies Act, 1056 to apply to Central society.

17. Every Central society shall maintain, in relation to the business carried on by it, accounts and other records in such forrn and in such manner as may be prescribed.

Books and records to be maintain- ed by a Central society,

18. (1) Every Central society shall cause it3 books to be closed and Audit of accounts.

balanced on the 31st day of March of each year.

(2) The accounts of every Central society shall be audited annually by the Comptroller and Auditor General of India or sucfi other person as may be specified by him.

(3) The Comptroller and Auditor General of India, or the person specified by him in connection with the audit of accounts of a Central society, as the case may be, shall have the same rights and privileges and authority in connection with the audit of the accounts of a Central society as the Comptroller and Auditor General has in connection with the audit of Government accounts, and, in particular, shall have the same rights to demand the production of books, accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Central society, as the Comptroller and Auditor General has in connection with the audit of Government accounts.

(4) On the completion of the audit of the annual accounts of a Cen- tral society, the Comptroller and Auditor General, or, as the case may be, the person specified by the Comptroller and Auditor General by whom the audit was made, shall forward to the Central society a copy of such audited accounts, as certified by him, together with a copy of the audit report thereon and shall simultaneously forward a copy of the audited accounts so certified, together with the audit report thereon, to the Central Government.

Winding

up of

Central

societies.

19. No provision of law relating to the winding up of companies, cor- porations or societies shall apply to a Central society, and it shall not be wound up or placed in liquidation save by order of the Central Gov- ernment and in such manner as that Government may direct.

Indem- nity.

20. (1) Every member of the managing "committee of a Central society and every officer or other employee thereof shall be indemnified by the Central society against all losses and expenses incurred by him in, or in relation to, the discharge of his duties except such as have been caused by his own wilful act or default.

(2) No member of the managing committee of a Central society shall be responsible for any loss or expenditure caused to the Central society by the Insufficiency or deficiency of the value of, or title to, any pro- perty or security acquired or taken on behalf of the Central society or by anything done In, or in relation to, the execution of the duties of his office, unless such loss, expenditure, insufficiency or deficiency was due to any wilful act or default on the part of such member.

PART in

SPECIAL PROVISIONS RELATING TO AIDED UNION TERRITORY SOCIETIES

21 of I860.

Altera-

tions,

etc.,

in the

memoran-

dum and

rulea and

regula-

tions to

6? flW

21. (1) Every alteration, extension or abridgement of any purpose specified In the memorandum of any aided Union territory society which, being a society registered under the Societies Registration Act, IB60, continues to be governed by the provisions of that Act, and every alteration in its rules and regulations, by whatever name called, shall be filed with the Registrar of Societies appointed under that Act, within thirty days from the date on which such alteration, extension or abridgement ia confirmed by the members of the aided Union territory society.

with the Registrar of Societies.

(2) If any default is made in complying with the provisions of sub- section (1), every member of the governing body of the aided Union territory society who is knowingly or wilfully guilty of- such default or who has knowingly or wilfully permitted such default shall be punished with fine which may extend to one thousand rupees, and to a further fine of twenty-five rupees for every day, after the first, during which the default continues.

21 of 1860.

Penalty for non- filing of annual list of govern- ing body.

22. If any aided Union territory society which, being a society regis- tered under the Societies Registration Act, 1860, continues to be governed by the provisions of that Act, omits or fails to file its annual list of members of the governing body to the Registrar of Societies appointed under that Act, every member of. the governing body of such Union territory society who is knowingly or wilfully guilty of such default or who has knowingly or wilfully permitted such default, shall be punished with fine which may extend to one thousand rupees, and to a further fine of twenty-five rupees for every day, after the first, during which thp default continues.

PART IV

AMALGAMATION OF CENTRAL SOCIETIES AND AIDED UNION

TERRITORY SOCIETIES

23. (1) The Central Government may, if it is of opinion that it is necessary in the public Interest so to do, prepare a scheme for the amal- gamation o{—

(a) a Central society or declared Central society with any other

Central society or declared Central society, or

(b) an aided Union terri.jry society with any other aided

Union territory society.

Scheme for amalga- mation of Central societies and aided Union territory societies.

(2) The Central society or declared Central society with which any other Central society or declared Central society is amalgamated, and an aided Union territory society with which any other aided Union terri- tory society is amalgamated shall hereinafter be referred to as the 'transferee society", and the Central society, declared Central society or aided Union territory society, which becomes amalgamated with any other Central society, declared Central society or aided Union territory lociety, as the case may be, shall hereinafter be referred to as the "trans- feror society".

(3) The scheme, referred to in sub-section (1), may provide for all

>r any of the following matters, namely: —

(a) constitution, capital, assets, powers, rights, Interests, autho- rities and privileges, liabilities, duties and obligations of the trans- feree society on the amalgamation with it of any transferor society; (b) transfer to the transferee society of the business, proper- ties, assets and liabilities of the transferor society on such terms and conditions as may be specified in the scheme;

(c) any change in the governing body or the appointment of a new governing body of the transferee society and the manner in which and the terms and conditions on which such change or appointment shall be made and, in the case of appointment of a new governing body, the period for which such appointment shall b$ made;

(d) alterations, if necessary, of the memorandum and rules and regulations of the transferee society for the purpose of giving effect to the scheme of amalgamation;

(e) subject to the provisions of the scheme, the continuation by or against the transferee society, of any actions or proceedings against the transferee society or transferor society immediately before the date of amalgamation;

(f) reduction of the interests or rights which the members or other creditors have in or against the transferee society or the trans- feror society before the amalgamation to such extent as the Central Government may consider necessary in the public interest;

(0) payment, in cash, to creditors in full satisfaction of the claim—

(i) in respect of the interests or rights in or against the transferor society before the amalgamation, or

(ii) where their interests or rights aforesaid in or against the transferor society or transferee society has or have been revised under clause (f) in respect of such interests or rights, as so revised;

(h.) continuation of the services of all the employees of the transferor society or, as the case may be, of the transferee society at the same remuneration and on the same terms and conditions which they were entitled to or, as the case may be, by which they were being governed immediately before the date of amalgamation;

(1) such incidental, consequential and supplemental matters as are necessary to ensure that the amalgamation shall be fully and effectively carried out;

(j) dissolution of the transferor society.

(4) A copy of the scheme prepared by the Central Government shall be sent in draft to the transferor society and the transferee society to enable it to make suggestions and objections, if any, within such period, not being less than two months, as the Central Government may specify for the purpose.

(5) The Central Government may make such modifications, if any, In the draft scheme as it may consider necessary in the light of the suggestions and objections received from the transferor society and the transferee society or from any member or creditor or class of credi- tors of the transferor society or transferee society.

(6) The scheme shall, thereafter, be sanctioned by the Central Gov- ernment after making such modifications therein as it may think fit, and the scheme so sanctioned by the Central Government shall come into force on such date as that Government may specify in this behalf:

Provided that different dates may be specified for different provisions of the scheme.

(7) The sanction accorded by the Central Government under sub- section (6) shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with, and a copy of the sanctioned scheme, certified in writing by an officer of the Cen- tral Government, not below the rank of an Under Secretary, to be a true copy thereof, shall, in all legal proceedings, be admitted as evidence to the same extent as the original scheme.

(8) On and from the date of coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on all the members, creditors and employees of the concerned Central society, declared Central society or aided Union territory society, as the case may be, and on every other person having any right or liability in relation to any of the said societies.

(9) On and from such date as may be specified by the Central Gov- ernment in this behalf, the business, properties and assets o£ the trans- feror society shall, by virtue of and, to the extent provided in the scheme, stand transferred to, and vest in, the transferee society; and the liabilities of the transferor society shall, by virtue of and to the extent provided in the scheme, stand transferred to, and become the liabilities of, the transferee society,

(10) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may, by order, do anything, not in- consistent with such provisions, which appear to it necessary or expe- dient for the purpose of removing the difficulty.

(11) The Central Government may prepare a scheme, made in like manner, to add to, vary or modify any scheme made under this section.

PART V

POWERS OF CENTRAL GOVERNMENT WITH REGARD TO CENTRAL SOCIETIES AND DECLARED CENTRAL SOCIETIES AND AIDED UNION TERRITORY SOCIETIES

24. (/) Whenever the Central Government is satisfied that with a view to ensuring the proper functioning of any Central society, declared Central society or aided Union territory society or with a view to dis- charging its accountability to Parliament in relation to such society it is necessary so to do, it may—

Power Of Central Govern- ment to issue direc- tions, etc.

(a) issue such directions as it may think fit to such Central society, declared Central society or aided Union territory society, as the case may be;

(b) require such Central society, declared Central society or

aided Union territory society,—

(i) to submit every year its budget for the next year to the Central Government for approval, and thereupon the budget, as approved by the Central Government, shall be the budget of the Central society, declared Central society or aided Union territory society, as the case may be, for the concerned year;

(ii) to submit a statement of its accounts to the Central Government and to furnish such informations and explanations as may be necessary in relation to such accounts;

(Hi) to give such informations or explanations with respect to its affairs as the Central Government may specify.

(2) Whenever any Central society, declared Central society or aided Union territory society is required under sub-section (1) to submit its budget to the Central Government for approval, no expenditure shall oe incurred by such society unless such expenditure is authorised by its budget as approved by the Central Government.

25. (1) The Central Government may appoint a Committee to review ;he work and progress of any Central society, declared Central society or lided Union territory society and to hold inquiries into the affairs thereof md to report thereon in such manner as that Government may direct.

(21) Upon the receipt of such report, the Central Government may

Powers of Central Govern- ment to appoint a Review Com- mittee, etc. take such action and issue such directions as it may consider necessary in respect of any of the matters dealt with in the report and the Central society, declared Central society or aided Union territory society, as the :ase may be, shall be bound to comply with such directions.

(3) The Central Government may also, if it is satisfied that for the efficient or better functioning of a Central society, declared Central society or aided ! Union territory society it is necessary so to do, cause an inspection to be made by such person or persons as it may direct into the affairs of the Central society, declared Central society or aided Union territory society, as the case may be, and also to cause an inquiry to be made in respect of any other matter connected with the Central society, declared Central society or aided Union territory society, as the case may be.

(4) The Central Government shall, in every case, give notice to th concerned Central society, declared Central society or aided Union terri- tory society, of its intention to cause an inspection or inquiry to be made, and the concerned society shall be entitled to appoint a representative who shall have the right to be present and be heard at such inspection or inquiry.

(5) The Central Government may address the Central sopi^<:v, dec- lared Central society or aided Union territory society, as the case may be, with reference to the results of such inspection or inquiry, and the Central society, declared Central society or aided Union territory society, shall communicate to its managing committee the results of such inspec- tion or inquiry.

(6) The managing committee of the Central society, declared Central society or aided Union territory society, as the case may be, shall inti- mate to the Central Government such action, if any, as is proposed to be taken, or has been taken, upon the results of such inspection or inquiry.

(7) Where the managing committee of the Central society, declared Central society or aided Union territory society, as the case may be, does not, within a reasonable time, take action, to the satisfaction of the Central Government, that Government may, after considering any expla- nation furnished, or representation made, by the managing committee, issue such directions to the Central society, declared Central society or aided Union territory society, as the case may be, as it may think fit and

the managing committee of the society to which such directions are given shall be bound to comply with such directions.

Power of Central Govern- ment to prevent mis- manage- ment.

26. If the Central Government is satisfied, after such inquiry as it may deem fit to make, that a Central society, declared Central society or aided Union territory society is not discharging its functions properly or is being managed in a manner which is prejudicial to the interests of that society, and that it is necessary so to do to ensure the proper functioning of such society, it may by order, appoint, for a period not exceeding three years, such number of persons as it may think fit as members of the managing committee, by whatever name called, of the Central society, declared Central society or aided Union territory society, as the case may be: * * *

Provided that no such order shall be made except after giving the Central society, declared Central society or aided Union territory society, as the case may be, * *• * a reasonable opportunity of being heard.

27. (!) If the Central Government is satisfied, whether after an

inspection or inquiry made under section 25 or otherwise, that—

(a) a Central society, declared Central society or aided Union

territory society has, without sufficient reason, failed to—

(i) carry out any direction given to it, or

(H) submit a statement of its accounts to the Central Gov-

ernment, or

(Hi) furnish any information or explanation in relation to

such account; or

power of Central Govern- ment to take over the ma- nagement of a Cen- tral society. declared Central society of aided Union territory society.

(b) a Central society, declared Central society or aided Union territory society has misapplied the whole or any part of the funds made available to it by the Central Government; or

(c) the business^ of a Central society, declared Central society or aided Union territory society is being conducted with intent to defraud its creditors, members or any other person,

and that it is expedient in the interests of the proper management of the Central society, declared Central society or aided Union territory society 30 to do, that Government may, after giving to the concerned society a reasonable opportunity of showing cause against the proposed action, by order, take over the management of such Central society, declared Central society or aided Union territory society, as the case may be, for such period not exceeding three years as may be specified in the order:

Provided that where the management of a Central society, declared Central society or aided Union territory society is taken over for a period of less than three years, the Central Government may, if it is of opinion that in order to ensure proper management thereof it is expedient that the

management by the Central Government should continue! after the expiry of the said period, from time to time, issue directions for the continuance of such management for such period not exceeding one year at a time as it may think fit; so, however, that the total period for which such management is taken over shall not, in any case, exceed three years.

(2) Whenever the management of a Central society, declared Central society or aided Union territory society is taken over under sub- section (1), every person in charge of the management of such society immediately before such management is taken over shall deliver possession of the property of such society to the Central Government or to any officer authorised by the Central Government in this behalf.

(3) After taking over the management of the Central society, declared Central society or aided Union territory society, as the case may be, under this section, the Central Government shall arrange to manage such society through such person or body of persons as it may think fit.

(4) During such period as the Central society, declared Central society or aided Union territory society remains under the management of the Central Government-

fa) the conditions of service of the employees of such society, who were in employment imroediatedly before the date on which the management of such society was taken over shall not be varied to their disadvantage;

(b) all the functions of such society shall be discharged by the

Central Government;

(c) the funds of such society shall continue to be available to the Central Government for being spent for the purposes of the society.

Contracts, etc., in bad' faith may be cancelled or varied.

28 The person or body of persons authorised under section 27 to carry on the management of a Central society, declared Central society or aided Union territory society may, with the previous approval of the Central Government, make an application to the court having jurisdic- tion in this behalf for the purpose of cancelling or varying any contract or agreement entered into at any time before the issue of the order under section 27, between the Central society, declared Central society or aided Union territory society, as the case may be, and any person, and the court may, if satisfied after due inquiry that such contract or agreement had been entered into in bad faith or is detrimental to the interests of the Central society, declared Central society or aided Union territory society, as the case may be, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) the contract or agreement and the contract or agreement shall have effect accordingly.

29. Notwithstanding anything contained in any other law for the time being in force, no person, who ceases to hold any office or whose contract of management is terminated by reason of the provisions of section 28 shall be entitled to any compensation for the loss of office or for the premature termination of his contract of management:

No right to com- pensation for termi- nation o' office or contract of man- agement.

Provided that nothing contained in this section shall affect the right of any such person to recover from the Central society, declared Central

society or aided Union territory society, as the case may be, monies recoverable otherwise than by way of such compensation.

Applica- tion of Act 21 of 1860.

30. (1) Notwithstanding anything contained in the Societies Regis- tration Act, 1860, or under this Act or in the memorandum or rules and regulations of any society, whenever the management of such society is taken over by the Central Government under this Act,—

(o) it shall not be lawful for the members of such society or any other person to nominate or appoint any person to manage the affairs of the society;

(b) no proceeding for the appointment of a receiver in respect of such society shall lie in any court except with the consent of the Central Government; or

(c) no resolution passed at any meeting of the members of such society shall be given effect to unless approved by the Central Gov- ernment.

21 of I860.

(2) Subject to the provisions contained in sub-section (I) and to the other provisions contained in this Act and subject to such other excep- tions, restrictions and limitations, if any, as the Central Government may, by notification, specify in this behalf, the Societies Registration Act, 1860, shall continue to apply to an aided Union territory society, the manage- ment of which is taken over by the Central GovernrnCTrtunrferthisAct

in the same manner as it applied thereto before the issue of the order under j section 27.

Power of Central Govern- ment to cancel the order issued under sec- tion 27.

31. If at any time it appears to the Central Government on the appli- cation of any member of the Central society, declared Central society or aided Union territory society or otherwise that the purpose of the order issued under section 27 has been fulfilled, or that for any other reason it is not necessary that the order should remain in force, the Central Government may, by notification, cancel such order, and on the cancellation of any such order, the management of the Central society, declared Central society or aided Union territory society, as the case may be, shall vest in the governing body of such society.

PART VI

MISCELLANEOUS

Penalty for em- bezzle- ment of society's property, etc.

45 of 1860. 1 of 1956.

32. Any member of the governing body of a Central society, declared Central society or aided Union territory society who steals or embezzles any money or other property,- or wilfully destroys or damages any pro- perty, of such Central society, declared Central society or aided Union territory society, as the case may be, or forges any deed, bond, security for money, receipt or other instruments, whereby the funds of the Cen- tral society, declared Central society or aided Union territory society may be exposed to loss, shall be guilty of breach of trust and may be prosecuted and punished for such offence as if it were an offence punish- able under the Indian Penal Code, and shall also be liable for misfeas- ance and the provisions of the Companies Act, 1956, with regard to mis- feasance by directors, shall, as far as may be, apply to him as if he were ;< a director of a company.

Delega- tion of powers.

33. (1) The Central Government may, by notification, direct that all or any of the powers exercisable by it under this! Act may also be exer- cised by any person or persons¹ as may be specified in, the notification.

(2) Whenever any delegation of powers is made under sub-section (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the Central Government.

34. No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer of the Central Government or any- other person for anything which is in good faith done or intended to be done under this Act.

Protec- tion of action taken in good faith.

Annual report by Cen- tral Govern- ment.

35. Every Central society, deemed Central society or declared Central society shall, as soon as possible, after the end of each financial year submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and. full account of its activities, policies and programmes during the previous financial year, and the Central Government shall cause a consolidated annual report of the working and administration of the Central societies, deemed Central societies and declared Central societies to be prepared and laid before both Houses of Parliament, within one year of the close of the year to which the report relates.

36. (1) The Central Government may, by notification, make rules for

carrying out the provisions of this Act.

Power to make rules.

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

(a) fees to be paid, under sub-section (5) of section 8, for the registration of a Central society or declared Central society;

(b) nomination to be made under sub-section (1) of section 9 of the body of persons by whom the affairs of a Central society shall be managed;

(c) the purposes for which and the circumstances in which the reserve fund of a Central society or declared Central society may be used by it in pursuance of the provisions of sub-section (2) of section 14;

(d) manner in which books of account and records shall be maintained by a Central society or declared Central society, as re- quired by section 17;

(e) form of the balance-sheet and the income and expenditure statement of every Central society or declared Central society, as re- quired by section 17;

(f) any other matter which is required to be, or may be, pres- cribed.

(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 Parlia- ment 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 modifi- cation 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 modi- fication or annulment shall be without prejudice to the validity of any- thing previously done under that rule.

THE SCHEDULE

[See section 7 (1)]

1. Central Board of Secondary Education, 17-B, Indraprastha Estate New Delhi-1.

2. Central Board of Workers' Education, Nagpur.

3. Central Council for Research in Indian Medicine and Homoeo- pathy, E-25, Defence Colony, New Delhi-3.

4. Central Institute of Plastics Engineering and Tools, Guindy, Madras.

5. CentraMnstitute of Tool Designs, Balanagar, Hyderabad-37.

6. Children's Film Society, Hingorani House, Dr. Annie Besant Road, Worli, Bombay-18.

7. Council of Scientific and Industrial Research, Ran Marg, New Delhi-1.

8. Film and Television Institute of India, Law College Road, Poona-4.

9- Indian Council of Agricultural Research, Krishi Bhavan, New Delhi-1.

10. Indian Council for Cultural Relations, Azad Bhavan, Indraprastha Estate, New Delhi-1.

11. Indian Council of Historical Research, 35, Ferozeshah Road, New Delhi-1.

12. Indian Council of Medical Research, Ansari Nagar, New Delhi-16.

13. Indian Council of Social Science Research, 11, PA Hostel Build- ing, New Delhi-1.

14. Indian Institute of Foreign Trade, H-24, Green Park Extension, New Delhi-16.

15. Indian Institute of Management, Vastrapur, Ahmedabad-6.

16. Indian Institute of Management, 33, Langford Road, Bangalore-27.

17. Indian Ifnstitute oft Management, Diamond Harbour Road, P.p. Joka, via Calcutta-27.

18. Indian Institute of Mass Communication, D-13, South Extension

Part II, New Delhi-49.

19. Indian Institute of Public Administration, Indraprastha Estate,

New Delhi-1.

20. Indian Investment Centre, Jeewan Vihar Building, Parliament

Street, New Delhi-1.

21. Institute of Defence Studies and Analysis, Sapru House, New

Delhi-1.

22. Institute for Designs of Electric Measuring Instruments,

Churabhatti, Kurla, Bombay-70.

23. Iron Ore Board, Vandana Building, 11, Tolstoy Marg, New Delhi-1.

24. Kendriya Hindi Sikshan Mandal, 100, New Agra, Agra-5,

25. Kendriya Vidyalaya Sangathan (Central Schools Organisation),

4, Nehru House, Bahadur Shah Zafar Marg, New Delhi.

16. Lakshmibai National College of Physical Education, Gwalior-2

(M.P.).

J7. Lalit Kala Akademi, Rabindra Bhavan, Ferozeshah Road, New

Delhi-1.

28. National Book Trust, India, A-5, Green Park, New Delhi-16.

29. National Council of Educational Research and Training, NIE

Campus, Shri Aurobindo Marg, New Delhi.

30. National Institute of Family Planning, L-17, Green Park, New

Delhi-16.

il. National Institute of Health Administration and Education, E-16,

Greater Kailash, New Delhi-48.

32. National Institute of Public Co-operation and Child Development,

C-14, Safdarjung Development Area, Haus Khas, New Delhi-16.

33. National Institute of Training in Industrial Engineering, NITIE

P.O., Bombay-87.

34. National Labour Institute, AB-6, Safdarjung Enclave, New

Delhi-16.

35. National Remote Sensing Agency, c /o Department of Science and Technology, Technology Bhavan, New Mehrauli Road, New Delhi-29.

36. Netaji Subhas National Institute of Sports, Moti Bagh Palace,

Patiala.

37. Raja R am Mohan Roy Library Foundation, National Library

Premises, Belvedere, Calcutta-27.

38. Rashtriya Sanskrit Sansthan, 2212, G u r d w a ra Road, New Delhi-5.

39. Sahitya Akademi, Rabindra Bhavan, Ferozeshah Road, New Delhi-1.

40. Sangeet Natak Akademi, Rabindra Bhavan, Ferozeshah Road, New D e l h M.

41. School of Planning and Architecture, Indraprastha Estate, New

Delhi-1.

42. Small Industries Extension Training Institute, Yousufguda, Hyderabad-45 (A.P.).

S. S. BHALERAO,

Secretary-General.