BANKING SERVICE COMMISSION ACT, 1984

44 of 1984

2nd June, 1984

STATEMENT OF OBJECTS AND REASONS While reviewing the then existing arrangements for the recruitment and man-power planning in the public sector banks, the Banking Commission had recommended the establishment of an independent common recruitment agency for all the public sector banks on the lines of the Union Public Service Commission so that objective, rational and impartial selections could be ensured. Government had accepted this recommendation of the Banking Commission. Accordingly, the Banking Service Commission Act, 1975 was enacted by Parliament to provide for the establishment of a Banking Service Commission. 2. Before the Commission established under the Banking Service Commission Act, 1975 could start functioning, the Act was repealed in 1978. Thereafter, Banking Service Recruitment Boards were established by way of an alternative machinery to effect recruitment of officers and clerks in the public sector banks. The working of the Recruitment Boards for over five years has shown deficiencies such as duplication of efforts and wastage of resources on the recruitment of officers from different regions. It was, therefore, considered necessary to make some modifications in the existing process for the recruitment of officers in the public sector banks so that there is economy in expenditure, speedier conduct of recruitment and judicious placement and improved quality of candidates. The Bill seeks to give effect to this idea for providing for the establishment of a body corporate to be called "The Banking Service Commission". 3. The proposed Commission will be responsible for the direct recruitment of officers in all the 28 public sector banks by conducting examinations or making selections. 25 per cent. of the vacancies in the junior management grade in the general category are to be filled in by direct recruitment. The Bill also seeks to vest in the Commission the power to make appointments on promotion to the posts of Assistant General Managers and above in the public sector banks. 4. The proposed Commission will consist of a Chairman and not more than eight members of whom not less than half shall be persons with experience in, or knowledge of, banking and financial institutions. The expenditure of the Commission is proposed to be met mainly from the fees to be paid by the public sector banks on whose behalf the recruitments are to be made by the Commission. The Bill seeks to exempt the Commission from payment of taxes on income, profit and gain. 5. The Bill seeks to achieve the above objects. Notes on clauses explain the various provisions of the Bill. - Gar.. of Ind., 7-5-1984, Pt. II, S. 2. Ext., p. 13 (No. 30). An Act to provide for the establishment of a Commission for the recruitment and Selection of officers for appointment tc services and posts in public sector banks and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:-

CHAPTER 01: PRELIMINARY

SECTION 01: SHORT TITLE AND COMMENCEMENT

(1) This Act may be called the Banking Service Commission Act, 1984.

(2) It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act.

SECTION 02: DEFINITIONS

- In this Act. unless the context otherwise requires.-

(a) "banking company" has the meaning assigned to it in the Banking Regulation Act, 1949-;

(b) "Chairman" means the Chairman of the Commission:

(c) "Commission" means the Banking Service Commission, established under sub-section (1) of section 31-;, .

(d) "grade", in relation to a public sector bank, means a grade for officers as specified in the rules or, as the case may be, the regulations of the bank;

(e) "junior management grade", in relation to a public sector bank, means the lowest grade of officers in that bank;

(f) "members" means a member of the Commission but does not include the Chairman;

(g) "notification" means a notification published in the Official Gazette;

(h) "officer" means an officer of any grade; '

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

(j) "public sector bank" means-

(i) a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970-;

(ii) a corresponding new bank specified in the First Schedule to-the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;

(iii) the State Bank of India constituted under the State Bank of India Act, 1955;

(iv) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959:

(k) "regulation" means a regulation made under this Act.

(l) "Reserve Bank" means the Reserve Bank of India, constituted under the Reserve Bank of India Act, 1934-:

(m) "Secretary" means the Secretary of the Commission;

(n) "vacancy" includes a newly created post which has not been filled in.

CHAPTER 02: BANKING SERVICE COMMISSION

Clause 3.- This clause provides for the establishment of the "Banking Service Commission" with effect from a date to be notified by the Central Government, as a body corporate with headquarters at Delhi or at such other place as the Central Government may. by notification, specify. - Gaz. of Ind., 7-5-1984. Pt. II, S. 2. Ext.. p. 14 (No. 30).Clause 4.- This clause seeks to provide for the appointment and terms of office of (he Chairman and members of the Commission. The clause lays down the criteria for the selection of the Chairman and members and provides that as nearly as one-half of the members shall be persons having had experience for not less than ten years in banking or related activities. This clause further stipulates that at least one of the members shall be from persons belonging to the Scheduled Castes or the Scheduled Tribes. This clause also provides that the Chairman and members will have a tenure of five years or can continue until they attain the age of 65 years, whichever is earlier. - Gaz. Of Ind., 7-5-1984, Pt. II, S, 2, Ext" p. 14 (No. 30).Clause 5.- This. clause seeks to provide that the Chairman or a member of the Commission shall be ineligible for future employment under the Government of India or in a State Government or in the Reserve Bank of India or in any institution who by or substantially owned by the Reserve Bank of India or in any banking company or any public financial institution. This clause also prohibits the Chairman or a member from being reappointed for another term, but a member shall be eligible for appointment as the Chairman. - Gaz. of lnd" 7-5-1984, Pt. II, S. 2, Ext., p. 14 (N'o. 30).Clause 6.- This clause seeks to lay down the procedure for removal and suspension of the Chairman and members of the Commission from office in certain circumstances. - Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 14 (No. 30).Clause7.- This clause provides for the constitution of one or more committees by the Commission and for delegation of such of the functions and powers of the Commission as may be specified in the rules. - Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 14 (No. 30).Clause 8.- This clause provides for the appointment of a Secretary with the previous sanction of the Central Government and other employees of the Commission and for the determination of their terms and conditions of office. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 14 (No. 30).Clause 9.- This clause seeks to lay down the procedure for authentication of orders and other instruments of the Commission. - Gaz. of Ind.. 7-5-1984, Pt. II, S.-2, Ext., p. 14 (No. 30).

SECTION 03: ESTABLISHMENT OF THE COMMISSION

(1) With effect from such date as the Central Government may. by notification specify in this behalf, there shall be established for the purposes of this Act a Commission, to be called the banking Service Commission.

(2) The Commission shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and may by the said name sue and be sued.

(3) The Head Office of the Commission shall be at Delhi or si such other place as the Central Government may, by notification, specify.

SECTION 04: APPOINTMENT AND TERMS OF OFFICE OF CHAIRMAN AND MEMBERS

(1) The Central Government shall, by notification, appoint a person to be the Chairman of the Commission and not more than eight other persons lo be members of the Commission : Provided that at least one member shall be from amongst persons belonging lo the Scheduled Castes or the Scheduled Tribes.

(2) The Chairman and members shall be persons who, in the opinion of the Central Government, are men of ability. integrity and standing and have special knowledge of, or practical experience in, financial economic or business administration or in the administration of Government or in any other matter which would render such persons suitable for appointment as Chairman or member :

Provided that as nearly as may be one-half of the members shall he-persons who. on the date of their respective appointment, have had such experience for not less than ten years in a banking company or in any public sector bank or Reserve Bank or in an institution wholly or substantially owned by the Reserve Bank or a public financial institution.

(3) The Chairman or any member shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier: Provided that-

(a) the Chairman or any member may, by writing under his hand addressed to the Central Government, resign his office;

(b) the Chairman or any member may be removed from his office in the manner provided by this Act.

(4) The other terms and conditions of service of the Chairman and members shall be such as may be prescribed.

(5) If the office of the Chairman becomes vacant or if the Chairman is unable to discharge his functions owing to absence, illness or.any other cause such member of the Commission as the Central Government may, by order, specify. shall discharge the functions of the Chairman up to the date on which a new Chairman is appointed or, as the case may be. the Chairman resumes his duties.

SECTION 05: PROHIBITION AS TO HOLDING OFFICES BY CHAIRMAN OR MEMBER ON CEASING TO BE SUCH CHAIRMAN OR MEMBER

- A person who holds office as Chairman or member shall, on his ceasing to hold such office by reason of the expiration of his term or otherwise, be ineligible for re-appointment in the Commission or for employment under the Government of India or of any State or in the Reserve Bank or in any institution wholly or substantially owned by the Reserve Bank or in any public sector bank or any banking company or in a public financial institution: Provided that a member to whom this section applies, shall be eligible for appointment as Chairman, but shall not be eligible for any other employment.

SECTION 06: REMOVAL AND SUSPENSION OF CHAIRMAN OR THE MEMBERS FROM OFFICE IN CERTAIN CIRCUMSTANCES

(1) The Central Government may remove from office the Chairman or any member, who-

(a) is adjudged an insolvent, or

(b) is convicted of an offence involving moral turpitude, or

(c) is, in the opinion of the Central Government, unfit to continue in office by reason of infirmity of mind or body. or

(d) engages, during the term of office, in any paid employment outside the duties of his office, or

(e) has acquired such financial or other interest as is likely to affect prejudicially his functioning as the chairman or a member, or

(f) has so abused his position as to render his continuance in office undesirable.

(2) Notwithstanding anything contained in sub-section (1), the Chairman or any member shall not be removed from office on the ground specified in clause (d) or clause (e) or clause (f) of that sub-section unless the matter has been referred to an Inquiry Officer appointed under sub-section

(3) and such officer has, after an inquiry, held in accordance with such procedure at the Central Government may specify in this behalf, reported that the member ought, on such grounds, to be removed.

(3) For the purpose of holding an inquiry under sub-section (2) the Central Government may, by order, appoint, as an Inquiry Officer, a person who is holding or has held the office of a Judge of the Supreme Court or of any High Court.

(4) The Central Government may suspend from office the Chairman or any member in respect of whom a reference has been made to an Inquiry Officer under sub-section (2), pending such inquiry.

(5) The terms and conditions of service of any Inquiry Officer appointed under sub-section (3) shall be such a& the Central Government may, by order, specify.

SECTION 07: POWER OF COMMISSION TO CONSTITUTE COMMITTEES

(1) The Commission may, in such manner and subject to such conditions and restrictions as may be prescribed, constitute one or more committees consisting wholly of its members or partly of its members and partly of other persons and delegate to any committee so constituted such of the functions and powers of the Commission as may be specified in the rules made by the Central Government: Provided that the Commission may constitute any committee either with. or without, the Chairman as one of the members of such committee.

(2) The sitting fee and travelling allowance payable to persons, other than the Chairman and members for attending any meeting of the committee, shall be such as may be prescribed.

SECTION 08: SECRETARY AND OTHER STAFF OF THE COMMISSION

(1) The Commission may, with the previous sanction of the Central Government, appoint a Secretary for the efficient discharge of its functions under this Act.

(2) The terms and conditions of service of the Secretary shall be such as may be prescribed,

(3) Subject to such regulations as may be made in this behalf, the Commission may appoint such other employees as it may think necessary for the efficient discharge of its functions under this Act on such terms and conditions as the Commission may, having regard to the terms and conditions of service of the comparable posts in the Central Government, determine with the previous sanction of the Central Government.

SECTION 09: AUTHENTICATION OF ORDERS AND OTHER INSTRUMENTS OF THE COMMISSION

(1) All orders and instruments issued by the Commission shall be authenticated by the signature of the Secretary or any other employee of the Commission authorised by the Chairman in this behalf.

(2) Orders or instruments issued by the Commission and authenticated in accordance with the provisions of sub-section (1) shall be evidence of the matters recorded therein and shall be admissible in evidence notwithstanding anything contained in the Indian Evidence Act, 1872, or in any other law for the time being in force.

CHAPTER 03: FUNCTIONS OF THE COMMISSION

Clause 10.- This clause seeks to provide that the duty of the Commission will be to conduct examinations or selections or both for all appointments to be made to the various grades of officers in the public sector banks. It shall also provide for the selection of officers on promotion of and above the rank of Assistant General Manager or its equivalent rank in the public sector banks. - Gaz. of Ind.. 7-5-1984. Pt. II, S. 2, Ext., p. 14 (No. 30).Clause 11.- This clause seeks to provide for the calling for applications and conduct of examinations or selections or both for recruitment of officers in the public sector banks and also for the collection of fees from candidates. - Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 15 (No. 30).Clause 12.- This clause makes it obligatory on the part of a public sector bank to communicate to the Commission^ per cent. of the estimated total number of vacancies in the junior management grade in the general category. This clause also makes it obligatory on the part of the public sector banks to communicate to the Commission all other vacancies of officers for which direct recruitment is to be made and the vacancies of officers of and above the rank of Assistant General Manager for which appointments are to be made by promotion. This clause further empowers the Central Government to raise the above referred percentage of 25 to a maximum of 33-1/3. - Gaz, of Ind., 7-5-1984, Pt. II, S, 2, Ext., p. 15 (No. 30).Clause 13.- This clause specifies the cases in regard to which consultation with the Commission shall not be necessary. - Gaz. of Ind.. 7-5-1984. Pt. II. S. 2, Ext., p. 15 (No. 30).Clause 14.- This clause lays down that it shall be the duty of the Commission lo make recommendations to each of the public sector banks, on the basis of the results of the examinations conducted by it or selections made by it. for appointments to fill vacancies communicated to it by such bank. -Gat. of Ind.. 7-5-1984, Pt. II, S. 2, Ext.. p. 15 (No. 30).Clause 15.- This clause provides that notwithstanding anything to the contrary contained in any award, settlement or agreement, or in any judgment, decree or order of any court or tribunal or other authority or in any other law in force for .he time being, appointments to all the vacancies communicated to the Commission shall be made by the public sector banks only on the recommendations of the Commission except where consultation with the Commission is not necessary. It. however, provides for such vacancies lo be filled in temporarily, after consultation with the Commission, for such periods as may be, specified by the Commission.-Gaz. Of lnd" 7-5-1984, Pt. II, S. 2, Ext.. p. 15 (No. 30).Clause 16.- This clause empowers the Central Government to entrust to the Commission such functions of an advisory nature as it may think fit. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2. Ext., p. 15 (No. 30).Clause 17.- This clause provides for the reservation of posts for candidates belonging to the Scheduled Castes, the Scheduled Tribes and other categories of persons. The clause provides that while giving directions to the bank the Central Government shall give due regard to the reservation of posts made for the Scheduled Castes, the Scheduled Tribes and other categories of persons in relation to recruitment to the services of the Government and to the general need in and special requirements of the bank concerned. -Gut. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 15 (No. 30).Clause 18.- This clause deals with the Fund of the Commission, Receipts of the Commission shall be credited to the Fund and payments would be made there from. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 15 (No. 30).Clause 19.- This clause provides that the Central Government may, by general or special order and subject to any rules that may be made in this regard direct every public sector bank to pay to the Commission such fee as it may determine. In determining the fee, due regard will be given to demand and time liabilities of the bank. -Gaz. of Ind.. 7-5-1984, Pt. II, S. 2, Ext., p. 15 (No. 30).Clause 20.- This clause provides that the Commission shall prepare a budget in respect of the year next ensuing in such form and at such time each year as may be prescribed. -Ga<. of Ind., 7-5- 1984, Pt. II, S. 2, Ext., p. 16 (No. 30).Clause 21.- This clause provides for the maintenance of proper accounts, records and preparation of annual statement of accounts in the form and manner as may be prescribed and for the audit of the accounts of the Commission. -Gaz. of Ind" 7-5-1984, Pt. II, S. 2, Ext., p. 16 (No. 30).Clause 22.- This clause lays down that the annual report of the Commission along with copies of the Commission's annual accounts and auditor's report shall be laid before both the Houses of Parliament. -Gaz. of lnd" 7-5-1984, Pt. II, S. 2, Ext., p. 16 (No. 30).

SECTION 10: DUTY OF COMMISSION TO HOLD COMPETITIVE EXAMINATIONS OR MAKE SELECTIONS FOR APPOINTMENT TO POSTS IN PUBLIC SECTOR BANKS

- It shall be the duty of the Commission lo conduct examination or to make selections or both for appointments in public sector banks for filling vacancies in-

(a) posts of officers required to be filled by direct recruitment.

(b) posts of officers of and above the rank of Assistant General Manager or of its equivalent rank required to be filled by promotion; and

(c) such other posts as the Central Government may, by notification, specify.

SECTION 11: CALLING FOR APPLICATIONS AND CONDUCT OF EXAMINATIONS OR SELECTIONS

(1) The Commission shall call for applications from such category of persons and in such manner as may be specified in the regulations and conduct examinations or make selections or both having regard to the requirement of section 17-and the vacancies communicated to it under section 12-:

Provided that such examinations or selections or both shall be made in accordance with the principles specified in the regulations.

(2) The fee payable on an application under sub-section (1) shall be such as may be specified by regulations and such fee shall not exceed eighty rupees.

SECTION 12: DUTY OF PUBLIC SECTOR BANKS TO COMMUNICATE TO THE COMMISSION OF NUMBER OF VACACIES

(1) It shall be the duty of every public sector bank to communicate to the Commission-

(a) twenty-five per cent of the estimated total number of vacancies in the junior management grade in the general category.

(b) all other vacancies in posts of officers required to be filled by direct recruitment,

(c) vacancies in posts of officers of and above the rank of Assistant General Manager or of its equivalent rank required to be filled by promotion. and such communication shall be sent in respect of all such vacancies which are likely to occur during the unexpiltd portion of the year in which this section comes into force, as soon as may be after such commencement and in respect of all such vacancies as are likely to occur during each subsequent year, as soon as may be after the commencement of such year: Provided that in relation to junior management grade in the general category, the Central Government may, if it is of opinion that it is necessary so to do in the interests of the public sector banks, by notification, raise the percentage of vacancies to be communicated to the Commission to they-three and one third per cent.

(2) Communications of vacancies referred to in sub-section (1) shall be made in such form and in such manner as may be specified in the regulations.

SECTION 13: CASES IN WHICH COMMISSION MAY NOT BE CONSULTED

- It shall not be necessary to consult the Commission in regard to the selection of a person-

(a) for appointment to a post in the junior management grade on compassionate grounds or other special grounds (in pursuance of the scheme framed by a public sector bank in consultation with the Commission and with the previous sanction of the Central Government):

(b) if the person appointed is not likely to hold the post for a period of more than one year, and it is necessary in the interests of the public sector bank to make the appointment immediately and reference to the Commission will cause undue delay: Provided that-

(i) such appointment is made in the manner specified by the Commission by regulations and is reported to the Commission as soon as it is made;

(ii) if the appointment continues beyond a period of six months, a fresh estimate as to the period for which the person appointed is likely to hold the post shall be made and reported to the Commission; and

(iii) if such estimate indicates that the person appointed is likely to hold the post for a period of more than one year from the date of appointment, the Commission shall immediately be consulted in regard to the filling of the post.

SECTION 14: DUTY OF COMMISSION TO MAKE RECOMMENDATION

- It shall be the duty of the Commission to make, on the basis of the results of examinations conducted or on the basis of the selection made by it or. as the case may be. on the basis of both. Recommendations to each public sector bank in such manner as may be specified by regulations for appointments lo fill the vacancies communicated to it by such bank under section 12-

SECTION 15: COMMUNICATED VACANCIES TO BE FILLED ONLY ON THE RECOMMENDATION OF THE COMMISSION

(1) Notwithstanding anything to the contrary contained in any award, settlement or agreement, or in any judgment, decree or order of any court or tribunal or other authority or in any other law in force for the time being, appointments to all the vacancies required to be communicated to the Commission under section 12-shall, on or from such date as the Commission may notify in respect of each public sector bank, be made by such public sector bank only on the recommendation of the Commission, except where consultation with the Commission is not necessary under this Act.

(2) If, in any year, the Commission is unable to make recommendation for appointment to all the vacancies communicated to it by a public vector bank under section 12-. or if the public sector bank is unable, in any year, to make appointments on the basis of recommendations made by the Commission, the vacancies may be carried forward to the subsequent year, to be filled in the said manner: Provided that the public sector bank may, in consultation with the Commission, fill such vacancies temporarily in such manner and for such period as the Commission may, by regulations, specify.

SECTION 16: POWER OF CENTRAL GOVERNMENT TO ENTRUST ETHER ADVISORY FUNCTIONS TO THE COMMISSION

- The Commission shall discharge such functions of an advisory nature as the Central Government may, by notification, entrust to it.

SECTION 17: RESERVATION OF POSTS FOR CANDIDATES BELONGING TO SCHEDULED CASTES AND SCHEDULED TRIBES AND OTHER CATOGORIES OF PERSONS

- The Central Government may, by order, direct that in relation to every public sector bank, reservations in favour of the Scheduled Castes, Scheduled Tribes and other categories of persons shall be made in such manner and to such extent as it may specify: Provided that in giving any direction as aforesaid, the Central Government shall have due regard to the reservation of posts made for the Scheduled Castes, Scheduled Tribes and other categories of persons in relation to recruitments the services of the Government and to the general need, and special requirements, of such public sector bank.

SECTION 18: FUND OF COMMISSION

(1) The Commission shall have its own Fund and all the receipts of the Commission shall be credited to the Fund and all payments by the Commission shall be made there from.

(2) All moneys belonging to the Fund shall be deposited in such banks or invested in such manner as the Commission may, subject to any general or special order made by the Central Government in this behalf, decide.

(3) The Commission may spend such sums as it thinks fit for performing its function under this Act and such sums shall be treated as expenditure payable out of the Fund of the Commission,

SECTION 19: PAYMENT TO THE COMMISSION

(1) The Central Government may, subject to any rules that may be made in this behalf, direct every public sector bank to pay to the Commission such fee as it may determine and the aggregate amount of the fee so determined shall not exceed the expenses incurred by the Commission.

(2) The aggregate amount of fee payable under sub-section (1) shall beapportioned by the Central Government between different public sector banks and in making such apportionment in relation to a public sector bank, the Central Government shall have due regard to the demand and time liabilities of that public sector bank.

(3) For the purpose of meeting the expenditure of the Commission, the Central Government may, by general or special order, direct the payment by every public sector bank of an advance of such amount as it may specify and the advance so made shall be appropriated or adjusted in such manner as may be prescribed.

SECTION 20: BUDGET OF THE COMMISSION

The Commission shall prepare in such form and at such time each year as may be prescribed  a budget in respect of the year next ensuing showing the estimated receipts and expenditure; and submit the same to the Central Government for approval

SECTION 21: ACCOUNTS AND AUDIT

(1) The Commission shall maintain proper accounts and other relevant records ami prepare an annual statement of accounts for such period, in such form, at such time and in such manner as may be prescribed.

(2) The accounts of the Commission shall be audited by a person who is qualified to act as an auditor of a company under section 226 of the Companies Act, 1956, and the auditor shall receive such remuneration as the Commission may, in consultation with the Central Government, fix.

(3) In conducting the audit, the auditor shall have the same rights and duties as are possessed by an auditor of a company as if the Commission were a company within the meaning of the Companies Act, 1956.

SECTION 22: ANNUAL REPORT

- The Commission shall prepare once every year, in such form and at such time as may be prescribed, an annual report giving a full account of its activities during the previous year, and copies thereof along with copies of its annual accounts and auditor's report shall be forwarded to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.

CHAPTER 04: MISCELLANEOUS

Clause 23.- This clause provides for the obligation of secrecy on the part of the Chairman, members.

Secretary and other employees of the Commission. --Gaz. of Ind.. 7-5-1984, Pt. II, S. 2, Ext., p. 16 (No. 30).Clause 24.- This clause declares the Chairman, member, secretary and other employee of the Commission to' be a public servant within the meaning of section 21 of the Indian Penal Code. -Gaz. Of lnd" 7-5-1984. Pt. II, S. 2, Ext. p. 16 (No. 30).Clause 25.- This clause provides that the acts done by the Chairman, members and members of any of the comnutteef in good faith shall be valid and the defects in the constitution of the Commission or its committees shall not invalidate the acts or proceedings of the Commission or its committees. -Gaz. of lnd" 7-5-1984, Pt. II, S. 2, Ext" p. 16 (No. 30).Clause 26.- This clause gives protection to the Commission, the Government, the Chairman, members. Secretary or other employees of the Commission for anything which has been done in good faith. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext" p. 16 (No. 30).Clause 27.- This clause exempts the Commission from the liability to pay taxes on income, profits or gains. -Gaz. of lnd" 7-5-1984, Pt, II, S. 2, Ext" p. 16 (No. 30).Clause 28.- This clause authorises the Commission to delegate its powers to the Chairman, any member, the Secretary or any employee of the Commission. -Gaz. of lnd" 7-5-1984, Pt. II, S. 2, Ext" p. 16 (No. 30).Clause 29.- The clause seeks to amend the Industrial Disputes Act to make it clear that the appropriate Govemnwit in relation to the proposed Commission will be the Central Government. -Gaz. of lnd" 7-5-1984. Pt. II, S. 2, Ext... 0.16 (No. 30)Clause 30,- This clause lays down that the returns and other information as required by the Central Government shall be furnished by the Commission. It also provides that the Commission may also call upon the public sector banks to give such information as the Commission may deem fit to enable it to discharge its duties. -Gaz. of Ind.. 7-5- 1984, Pt. II, S. 2, Ext" p. 16 (No. 30).Clause 31.- This clause empowers the Central Government to make rules for carrying out the provisions contained in the Act. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext" p. 16 (No. 30).Clause 32.- This clause empowers the Commission, with the previous approval of the Central Government, to make regulations to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to lhe provisions of the Act. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 16 (No. 30).Clause 33.- This clause provides for the laying of rules and regulations made under the Act before each House of Parliament. -Gaz. of Ind., 7-5-1984. Pt. II, S. 2, Ext., p. 16 (No. 30).Clause 34.- This clause empowers the Central Government to issue an order for the purpose of removing any difficulty in giving effect lo the provisions of the Act. -Gaz. of Ind., 7-5-1984, Pt. II, S. 2, Ext., p. 16 (No. 30).

SECTION 23: OBLIGATION AS TO SECRECY

- The Chairman and members and the Secretary or other employees of the Commission, and every member of any committee constituted under sub-section (1) of section 7-, shall maintain strictest secrecy regarding the affairs of the Commission and shall not divulge, directly or indirectly, any information of a confidential nature to a member of the public unless compelled to do so by any judicial or other authority or unless instructed to do so by a superior officer in the discharge of his duties.

SECTION 24: CHAIRMAN, MEMBERS, ETC. TO BE PUBLIC SERVANTS

- The Chairman and members and the Secretary or 'other employees of the Commission, and every member of any committee constituted under sub-section (1)of section 7-shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code

SECTION 25: CERTFIN DEFECTS NOT TO INVILIDATE ACTS OR PROCEEDINGS

(l) All acts done by the Chairman and members and the members of any committee constituted under sub-section (1) of section 7-. acting in good faith, shall, notwithstanding any defect in their appointment or procedure, be valid.

(2) No act or proceeding of the Commission or of any committee thereof shall he invalid merely on the ground of the existence of any vacancy therein or defect in the constitution of the Commission or the committee, as the case may be.

SECTION 26: PROTECTION OF ACTION TAKEN IN GOOD FAITH

- No suit, prosecution or other legal proceedings shall lie against the Central Government or the Commission or any committee constituted under sub-section (1) of section 7-or any member of the Commission or of such committee or the Chairman or Secretary or other employee of the Commission for anything which is in good faith done or intended to be done under this Act or any rule made thereunder.

SECTION 27: COMMISSION NOT LIABLE TO BE TAXED

-Not withstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to income-tax, surtax or any other tax on income, profits or gains, the Commission shall not be liable to pay any tax or surtax in respect of-

(a) any income, profits or gains accruing or arising out of the Fund of the Commission or any amount received in that Fund; and

(b) any income, profits or gains derived, or any amount received, by the Commission.

SECTION 28: DELEGATION OF POWERS

-The Commission may, by general or special order, delegate to the Chairman, any member, Secretary or any employee of the Commission, subject to such conditions and limitations, if any, a( may be specified therein, such of its powers and duties under this Act as it may deem fit.

SECTION 29: AMENDMENT OF ACT 14 OF 1947

- For the purposes of the Industrial Disputes Act, 1947, the Central Government shall be deemed to be the appropriate Government in relation to an industrial dispute concerning the Commission and the definition of "appropriate Government" in that Act shall have effect accordingly.

SECTION 30: RETURNS AND INFORMATION

(1) The Commission shall furnish to the Central Government such return or other information with respect to its properties or activities as the Central Government may, from time to. time, require.

(2) The Commission may, for the purpose of enabling it to discharge its functions under this Act, call upon any public sector bank to give such statements or furnish such particulars as the Commission may deem fit and every such bank shall comply with the same.

SECTION 31: POWER TO MAKE RULES

(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

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

(a) the terms and conditions of service of the Chairman and members;

(b) the sitting fee and travelling allowance payable to persons, other than the Chairman and members, for attending any meeting of the Committee under sub-section (2)of section 7-;

(c) the terms and conditions of service of the Secretary under sub-section (2)of section 8-;

(d) the category of persons for whom any vacancy or percentage of vacancies in a public sector bank may be reserved by the Central Government;

(e) the procedure for determination of the fee to be paid by every public sector bank to the Commission under lection 19;

(f) the form in which and the time within which the Commission shall prepare and submit its budget to the Central Government under section 20-;

(g) the period for which, the form and manner in which and the time within which the Commission shall prepare its annual statement of accounts under sub-section (1) of section 21-;

(h) the form and manner in which and the date by which the Commission shall prepare an annual report giving a full account of its activities during the previous year and submitting the same to the Central Government under section 22-:

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

SECTION 32: POWER TO MAKE REGULATIONS

(1) The Commission may with .the previous approval of the Central Government, by notification, make regulations, not inconsistent with the provisions of this Act or the rules made there under, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.

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

(a) the matters referred to in sub-section (3)of section 8-.

(b) (he manner in which, and the category of persons from whom, applications may be called for appearing at examinations, selections or tests held by the Commission under sub-section (1)of section 11-;

(c) the principles in accordance with which candidates shall be selected for different posts under the proviso to sub-section (1) of section 11-:

(d) the fee payable by candidates intending to appear at examinations, selections or tens conducted by the Commission under sub-section (2) of section 11-.

(e) the form and manner in which communication of vacancies under sub-section (2) of section 12-shall be made;

(f) the manner in which appointments may be made to fill any vacancy without consulting the Commission;

(g) the manner in which and period for which appointments may be made to fill vacancies in relation to which the Commission is unable to make a recommendation;

(h) the number of places and time at which the Commission shall conduct examinations or tests for recruitment to different posts.

(i) generally for the efficient conduct of the affairs of the Commission.

SECTION 33: RULES AND REGULATIONS TO BE LAID BEFORE PARLIAMENT

- Every rule and every regulation made under this Act shall be laid. as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in (he rule or regulation, as the case may be, or both Houses agree that the rule or regulation, as the cue may be, should not be made. the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the cue may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.

SECTION 34: POWER TO REMOVE DIFFICULTY

- If any difficulty arises in giving effect to the provisions of this Act, the Central Government may. By order, do anything, not inconsistent with such provisions, for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of three years from the date on which this Act receives the assent of the President.