OIL INDUSTRY (DEVELOPMENT) ACT, 1974

STATEMENT OF OBJECTS AND REASONS Following successive and steep increases in the international prices of crude oil and petroleum products since early 1973, the need for progressive self-reliance in petroleum based industrial raw materials has assumed great importance. It is essential that the programme for securing such self-reliance should be rapidly stepped up and also that the necessary resources for the execution of such programmes must be assured. It is, therefore, proposed to levy by way of access duties of excise on crude, oil and natural gas so as to create oil Industry Development Fund. This Fund would be used exclusively to provide financial assistance to the organisations engaged in development programmes of the oil industry in all its aspects from the exploration for and the production of crude oil to its refining further down-stream processing, distribution marketing etc. and research and development. To begin with, it is proposed to recover by way of access in the form of a duty of excise of Rs. 60 per tonne on crude oil produced in the country and delivered to the refineries. The access will be utilised for approved schemes in the fields of it exploration and production, and the refining marketing and distribution of petroleum products. In due course, the scope of the Fund will be extended to cover other sectors such as the down-stream processing of petroleum feed stocks. 2. The Bill seeks to achieve the above objects. The notes on clauses appended to the Bill explain in detail the various provisions thereof.-Gaz. of India, 27-7-1974. Pt. II S. 2. Ext. p. 658. Amending Act 45 of 1981. - The Oil Industry (Development) Act, 1974 provides for the establishment of a Board called the "Oil Industry Development Board" for the development of the oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith. Sub-section (1) of section 15of the said Act. inter alias, empowers the Central Government to levy and collect a duty of excise on the crude oil at such rate not exceeding the rate set forth in the Schedule to the Act that is rupees one hundred per tone as the Central Government may by notification in the Official Gazette specify. According to the proviso to sub-section (1) of said section 15, the duty of excise in respect of the crude oil is to be levied at the rate of rupees sixty per tone until the rate is specified by notification. By issue of a notification on July 13, 1981, the Central Government specified that the rate of duty of excise in respect of the crude oil would be at the rate of rupees one hundred per tone which is the maximum rate at which the duty of excise may be collected. 2. It has now been decided to increase the above referred to maximum rate of duty on crude oil to rupees three hundred per tone. For the purpose of levy and collection the rate shall be specified from time to time by notification under sub-section (l) of said section l5.  3. The Bill seeks to achieve the above object.- Gaz. of India. 17-9-1981.Pt. II. An Act to provide for the establishment of a Board for the development of oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith. Be it enacted by Parliament in the Twenty-fifth Year of the Republic of India as fallows:-

SECTION 01: SHORT TITLE AND EXTENT

(1) This Act may be called The Oil Industry (Development) Act, 1974.

(2) It extends to the whole of India.

SECTION 02: DEFINITIONS

In this Act, unless the context otherwise requires,-

(a) "assistance" means assistance rendered under section 6;

(b) "Board" means the OH Industry Development Board established under section 3-;

(c) "Chairman" means the Chairman of the Board;

(d) "Court" means the High Court or the Court of Judicial Commissioner within the local limits of whose jurisdiction the defendant or respondent carries on the whole or a substantial part of his business, and where the Central Government has, by notification in the Official Gazette, and subject to such restrictions, limitations and conditions as it thinks fit empowered any court of civil jurisdiction subordinate to the High Court or. as the case may be, the Court of the Judicial Commissioner, to exercise all or any of the powers conferred by this Act, such court;

(e) "crude oil" means petroleum in its natural state before it is refined or otherwise treated but from which water and foreign substances have been extracted;

(f) "fertilisers" means such oil-based chemical compounds which when employed in agriculture provide either single or multiple plant nutrients in any one or more of the forms of nitrogen, phosphorus and potash;

(g) "member" means a member of the Board and includes the Chairman;

(h) "mineral oil" includes petroleum and natural gas;

(i) "natural gas" means gas consisting primarily of hydrocarbons obtained from oil wells or gas wells;

(j) "oil industrial concern" means any company, corporation or cooperative society, which is engaged or which is to engage in any activity referred to in clause (k);

(k) "oil industry" includes all activities by way of prospecting or exploring for or production of mineral oil, refining, processing, transportation, storage, handling and marketing, of mineral oil, production and marketing of all products, down-stream of an oil refinery and the production of fertilisers and petrochemicals and all activities directly or indirectly connected therewith;

(l) "petro-chemicals" means chemicals whether organic or inorganic, derived from petroleum including crude oil, natural gas, condensates, refined petroleum fractions and refinery gases;

(m) "petroleum product" means any commodity made from petroleum or natural gas and includes refined crude oil, processed crude petroleum, residuum from crude petroleum, cracking stock, un cracked fuel oil, fuel oil, treated crude oil residuum, casing head gasoline, natural gas, gasoline, naphtha, distillate gasoline, kerosene, bitumen, asphalt and tat, waste oil, blended gasoline, lubricating oil, blends or mixture of oil with one or more liquid products or by products derived from oil or gas and blends or mixtures of two or more liquid products or by-products derived from oil condensate and gas or petroleum hydrocarbons not specified hereinbefore;

(n) "prescribed" means prescribed by rules made under this Act.

SECTION 03: ESTABLISHMENT AND CONSTITUTION OF THE BOARD

(1) With effect from ouch date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board to be called the Oil Industry Development Board.

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

(3) The Board shall consist of the following members, namely :-

(a) not more than three members to be appointed by the Central Government to represent the Ministry or Ministries of the Central Government dealing with petroleum and chemicals;

(b) two members to be appointed by the Central Government to represent the Ministry of the Central

Government dealing with finance;

(c) not more than five members to be appointed by the Central Government to represent the Corporations, being Corporations owned or controlled by the Central Government, engaged in activities referred to in clause

(k) of section 2;

(d) two members of whom one shall be appointed by the Central Government from amongst persons who, in the opinion of that Government, have special knowledge or experience of oil industry and the other shall be appointed by that Government to represent labour employed in the oil industry;

(e) the Secretary to the Board, ex officio.

(4) The Central Government shall appoint the Chairman of the Board.

(5) The term of office of the members of the Board (other than the members appointed by virtue of office) and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, the members shall be such as may be prescribed.

(6) Subject to such conditions and restrictions as may be prescribed, the Board may constitute Standing Committees or ad hoc Committees for exercising any power or discharging any duty of the Board or for inquiring into, reporting and advising on, any matter which the Board may refer to them: Provided that a Standing Committee shall consist exclusively of members of the Board.

(7) No act or proceeding of the Board or of any Committee constituted under sub-section (6) shall be invalidated merely by reason of-

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

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

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

SECTION 04: CONDITIONS OF SERVICE OF MEMBERS

 Every person appointed as a wholetime member of the Board shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government and the other members of the Board and such of the members of any ad hoc committee constituted under subsection (6) of section 3-as are not members of the Board shall be entitled to such allowances, if any, and such other conditions of service, as may be prescribed.

SECTION 05: SECRETARY, OFFICERS, CONSULTANTS AND EMPLOYEES OF THE BOARD

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(1) The Central Government shall appoint a Secretary to the Board.

(2) Subject to rules made in this behalf, the Secretary shall exercise such powers and perform such duties as may be prescribed or as may be delegated to him by the Board.

(3) The Secretary shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government.

(4) Subject to such conditions and restrictions as may be prescribed, the Board may appoint such consultants as may be necessary for the performance of its functions on such terms and conditions as it may determine from time to time.

(5) Subject to such conditions and restrictions as may be prescribed, the Board may appoint such other officers and employees as may be necessary for the performance of its functions and pay them such salaries and allowances as it may determine from time to time.

SECTION 06: FUNCTIONS OF THE BOARD

(1) Subject to the provisions of this Act and the rules made thereunder, the Board shall render, in such manner, to such extent and on such terms and conditions as it may deem fit, financial and other assistance for the promotion of all such measures as are, in its opinion, conducive to the development of oil industry.

(2) Without prejudice to the generality of the provisions of sub-section (1), the Board may render assistance under that sub-section by-

(a) making grants or advancing loans to any oil industrial concern or other person who is engaged or is to engage in any activity referred to in clause (k) ofsection 2-;

(b) guaranteeing on such terms and .conditions as may be agreed upon loans raised by any oil industrial concern or other person which are repayable within a period not exceeding twenty five years and are floated in the market or loans raised by an oil industrial concern or other person from any bank which is a scheduled bank, or a State co-operative bank, as defined in the Reserve Bank of India Act, 1934-;

(c) guaranteeing on such terms and conditions as may be agreed upon deferred payments due from any oil industrial concern or other person in connection with import of capital goods from outside India or in connection with purchase of capital goods within India by such concern or other person.

(d) guaranteeing on such terms and conditions as may be agreed upon loans raised from, or credit arrangements made with, any bank or financial institution in any country outside India by any oil industrial concern or other person in foreign currency : Provided that no such guarantee shall be given without the prior approval of the Central Government;

(e) underwriting the issue of stock, shares, bonds or debentures by any oil industrial concern and retaining as part of its assets any stock, shares, bonds or debentures which it may have to take up in fulfillment of its obligations thereto;

(f) acting as agent for the Central Government or, with its approval, for any overseas financial organisation or credit agency in the transaction of any business with any oil industrial concern in respect of loans or advances granted, or debentures subscribed by the Central Government or such organisation or agency;

(g) subscribing to the stock or shares of any oil industrial concern

(h) subscribing to the debentures of any oil industrial concern repayable within a period not exceeding twenty - five years from the date on which they are subscribed to; Provided that nothing contained in this clause shall be deemed to preclude the Board from subscribing to the debentures of any industrial concern, the amounts outstanding thereon may be convertible at the option of the Board into stock or shares of that concern within the period the debentures are repayable.

(3) Without prejudice to the generality of the provisions of sub-section ( 1 ), the measures for the promotion of which the Board may render assistance under that sub-section may include measures for or by way of-

(a) prospecting for and exploration of mineral oil within India (including the continental shelf thereof) or outside India;

(b) the establishment of facilities for production, handling, storage and transport of crude oil;

(c) refining and marketing of petroleum and petroleum products;

(d) the manufacture and marketing of petrochemicals and fertilisers;

(e) scientific technological and economic research which could be directly or indirectly, useful to oil industry;

(f) experimental or pilot studies in any field of oil industry;

(g) training of personnel, whether in India or outside, engaged or to be engaged in any field of oil industry and such other measures as may be prescribed.

(4) The Board may Board such fees or receive such commission as it may deem appropriate for any services rendered by it in the exercise of its functions.

(5) The Board may transfer for consideration any instrument relating to loans or advances granted by it to any oil industrial concern or other person.

(6) The Board may do all such things as may be incidental to or consequential upon the discharge of its functions under this Act.

SECTION 07: PRINCIPLES AND CONDITIONS OF ASSISTANCE

(1) Before rendering any assistance to any oil industrial concern of other person, the Board shall have regard to such directions as the Central Government may issue in this behalf and shall satisfy itself that- (a) such assistance is not contrary to such directions; and (b) such assistance is necessary as a matter of priority in the interests of the development of oil industry.

(2) In rendering any assistance to any oil industrial concern or other person, the Board shall impose such conditions as may be prescribed and may also impose such additional conditions as it may think necessary or expedient for protecting the interests of the Board and for securing that the assistance rendered by it is put to the best use by such concern or other person.

SECTION 08: POWER TO CALL FOR REPAYMENT BEFORE AGREED PERIOD

 Notwithstanding anything in any agreement to the contrary, the Board may, by notice in writing require any oil industrial concern or other person to which or to whom it has rendered any assistance to discharge forthwith in full its or his liabilities to the Board-

(a) if it appears to the Board that false or misleading information in any material particulars was given in the application for such assistance; or

(b) if the concern or other person has failed to comply with the terms of its or his contract with the Board in the matter of such assistance; or

(c) if there is a reasonable apprehension that the concern or other person is unable to pay its or his debts or that proceedings for liquidation or in insolvency may be commenced in respect of such concern or person; or

(d) if the property pledged, mortgaged, hypothecated or assigned to the Board as security is not insured and kept insured by the concern or other person to the satisfaction of the Board; or depreciates in value to such an extent that, in the opinion of the Board, further security to the satisfaction of the Board should be given and such security is not given; or

(e) if, without the permission of the Board, any machinery, plant or other equipment (whether or not forming part of the security), is removed from the premises of the concern or other person without being replaced; or

(f) if for any reason it is necessary to protect the interests of the Board.

SECTION 09: SPECIAL PROVISIONS FOR ENFORCEMENT OF CLAIMS BY THE BOARD

(1) Where an oil industrial concern or other person in breach of any agreement, makes any default in repayment of any loan or advance or any installment thereof or in meeting its or his obligations in relation to any other assistance rendered by the Board or otherwise fails to comply with the terms of the agreement with the Board or where the Board requires an oil industrial concern or other person to make immediate repayment of any loan or advance and the concern or other person fails to make such repayment, then, without prejudice to the provisions of section 69 of the Transfer of Property Act, 1882-, any officer of the Board generally or specially authorised by the Board in this behalf may apply to the court for one or more of the following reliefs, namely.:-

(a) for an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the Board as security for the loan or advance; or

(b) for an ad interim injunction where there is apprehension of the machinery or the equipment being removed from the premises of the oil industrial concern or other person without the permission of the Board; or

(c) in the case of an oil industrial concern, for transferring the management of the concern to the Board.

(2) An application under sub-section ( 1 ) shall state the nature and extent of the liability of the oil industrial concern or other person to the Board, the ground on which it is made and such other particulars as may be prescribed.

(3) When the application is for the relief mentioned in clause (a) or clause (b) of sub-section ( 1 ), the court shall pass an ad interim order attaching the property or so much of the property of the oil industrial concern or other person as would on being sold realise in the estimation of the court an amount equivalent in value to the outstanding liability of the concern or other person, to the Board together with costs of the proceedings taken under this section with or without an ad interim injunction restraining the oil industrial concern or other person from transferring or removing any machinery or equipment. (4) Where the application is for the relief mentioned in clause (c) of sub-section ( 1 ), the court shall grant an ad interim injunction restraining the oil industrial concern from transferring or removing its machinery and equipment and issue a notice calling upon the concern to show cause on a date to be specified in the notice why the management, of the concern should not be transferred to the Board.

(5) Before passing any order under sub-section (3) or sub-section (4), the court may, if it thinks fit, examine the officer making the application. of Civil Procedure, 1908-for the possession of immovable property or the delivery of movable property in execution of a decree, as if the Board were the decree-holder.

(12) Any party aggrieved (by) an order under subsection (7), or sub-section (9) may, within thirty days from the date of the order, appeal to the court empowered to hear appeals from the decisions of the court which passed the order and the appellate court may, after hearing the parties, pass such orders as it thinks proper.

(13) Nothing in this section shall be construed, where proceedings for liquidation or in insolvency in respect of the oil industrial concern or other person have commenced before an application is made under sub-section (1) as giving to the Board any preference over the other creditors of the concern or other person not conferred on it by any other law.

(14) For the removal of doubts, it is hereby declared that any court competent to grant an ad interim injunction under this section shall also have the power to appoint a receiver and to exercise all other powers incidental thereto.

SECTION 10: POWER OF BOARD TO APPOINT DIRECTORS OF OIL INDUSTRIAL CONCERN

 When the management of oil industrial concern is taken over by the Board, the Board may, by order notified in the Official Gazette appoint as many persons as it thinks fit to be the Directors of that concern and nothing in the Companies Act, 1956-or in any law or instrument relating to the concern, in so far as it makes, in relation to a Director, any provision for the holding of any share qualification, age limit, restrictions on the number of directorships, retirement by rotation or removal from office shall apply to any Director appointed by the Board under this section.

SECTION 11: EFFECT OF NOTIFIED ORDER APPOINTING DIRECTOR

On the issue of a notified order under section 10

(a) all persons holding office as Director of the oil industrial concern or in charge of the

mangement of such concern immediately before the issue of the notified order shall be deemed to have vacated their offices as such;

(b) the Directors appointed under section 10-shall take such steps as may be necessary to take into their custody or under their control the property, effects and actionable claims to which the oil industrial concern is, or appears to be, entitled and all the property and effects of the concern shall be deemed to be in the custody of the Directors as from the date of the notified order;

(c) the Directors appointed under section 10-shall for purposes be the Directors of the oil industrial concern duly constituted under the Companies Act, 1956-and shall alone be entitled to exercise all the powers of the Directors of the concern, whether such powers are derived from the said Act or from the memorandum or articles of association of the concern or from any other source.

SECTION 12: POWERS AND DUTIES OF THE DIRECTORS

(1) Subject to the control of the Board, the Directors appointed under section 10-shall take such steps as may be necessary for the purpose of efficiently managing the business of the oil industrial concern and shall exercise such powers and perform such duties as may be prescribed.

(2) Without prejudice to the generality of the powers vested in them under sub-section (1) the Directors appointed under section 10 may, with the previous approval of the Board, make an application to a court for the purpose of cancelling or varying any contract or agreement entered into, at any time, before the issue of the notified order under section 10-, between the oil industrial concern and any other person and the court may, if satisfied after due inquiry that such contract or agreement had been entered into in bad faith and is detrimental to the interests of the .concern, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) that contract or agreement and the contract or agreement shall accordingly stand cancelled or, as the case may be, have effect as so varied.

SECTION 13: NO RIGHT TO COMPENSATION FOR LOSS OF OFFICE

(1) Notwithstanding anything contained in any law for the time being in force, no Director or other person in charge of the management of an oil industrial concern immediately before the issue of a notified order under section 10-in respect of such concern shall be entitled to any compensation for the loss of office or for the premature termination under this Act of the contract entitling him to be in charge of such management.

(2) Nothing contained in sub-section (1) shall affect the right of any Director or other person referred to therein to recover from the oil industrial concern moneys recoverable otherwise than by way of such compensation.

(1) Where the management of an oil industrial concern, being a company as defined in the Companies Act, 1956-, is taken over by the Board, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such concern,-

(a) it shall not be lawful for the shareholders of such concern or any other person to nominate or appoint any person to be a Director of such concern;

(b) no resolution passed at any meeting of the shareholders of such concern shall be given effect to unless approved by the Board;

(c) no proceeding for the winding up of such concern or for the appointment of a receiver in respect thereof shall lie in any court, except with the consent of the Board.

(2) Subject to the provisions contained in sub-section ( 1 ) and to the other provisions contained in this Act and subject to such other exceptions, restrictions and limitations, if any, as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Companies Act, 1956-shall continue to apply to such concern in the same manner as it applied thereto before the issue of the notified order under section 10-.

SECTION 15: DUTIES OF EXCISE

(1) There shall be levied and collected, as a cess for the purposes of this Act, on every item specified in column 2 of the Schedule, which is produced in India (including the continental shelf thereof) and-

(a) removed to a refinery or factory; or

(b) transferred by the person by whom such item is produced to another person, a duty of excise at such rate not exceeding the rate set forth in the corresponding entry in column 3 of the Schedule, as the Central Government may, by notification in the Official Gazette, specify : Provided that until the Central Government specifies by such notification the rate of the duty of excise in respect of crude oil (being an item specified in the Schedule) the duty of excise on crude oil under this sub-section shall be levied and collected at the rate of rupees sixty per tonne.

(2) Every duty of excise leviable under sub-section (1) on any item shall be payable by the person by whom such item is produced, and in the case of crude oil, the duty of excise shall be collected on the quantity received in a refinery.

(3) The duties of excise under sub-section (1) on the items specified in the Schedule shall be in addition to any access or duty leviable on those items under any other law for the time being in force.

(4) The provisions of the Central Excises and Salt Act, 1944-and the rules made there under, including those relating to refunds and exemptions from duties shall, as far as may be, apply in relation to the levy and collection of duties of excise leviable under this section and for this purpose the provisions of that Act shall have effect 'as if that Act provided for the levy of duties of excise on all items specified in the Schedule.

SECTION 16: CREDITING OF PROCEEDS OF DUTY TO CONSOLIDATION FUND OF INDIA

-The proceeds of the duties of excise levied under section 15-shall first be credited to the Consolidated Fund of India and the Central Government may, if Parliament by appropriation made by law in this behalf, so provides, pay to the Board from time to time, from out of such proceeds, after deducting the expenses of collection, such sums of money as it may think fit for being utilised exclusively for the. purposes of this Act.

SECTION 17: GRANTS AND LOANS BY THE CENTRAL GOVERNMENT

The Central Government may also, after due appropriation made by Parliament by law in this behalf, pay to the Board by way of grants or loans such sums of money as the Central Government may consider necessary.

SECTION 18: OIL INDUSTRY DEVELOPMENT FUND

(1) There shall be formed a Fund to be called the Oil Industry Development Fund and there shall be credited thereto

(a) any sums of money paid under section 16 or section 17 ;

(b) any grants that may be made by any person or institution for the purposes of this Act;

(c) any borrowings by the Board;

(d) the sums, if any, realised by the Board in carrying out its functions or in the administration of this Act.

(2) The Fund shall be applied-

(a) for meeting the salaries, allowances, honoraria and other remuneration of the officers and other employees of the Board and of the advisers, consultants or other agencies whose services are availed of by the Board;

(b) for meeting the other administrative expenses of the Board;

(c) for rendering assistance under section 6;

(d) for repayment of any loans taken by the Board or for meeting other liabilities under this Act.

SECTION 19: POWER TO BORROW

- Subject to such rules as may be made in this behalf, the Board shall have the power to borrow on the security of the Oil Industry Development Fund or any other asset for carrying out the purposes of this Act.

SECTION 20: ACCOUNTS AND AUDIT

(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the comptroller and Auditor- General of India.

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General.

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

(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

SECTION 21: POWER TO REQUIRE PERSONS ENGAGED IN OIL INDUSTRY TO MAINTAIN AND PRODUCE BOOKS, ACCOUNTS AND RECORDS RELATING TO BUSINESS AND

INSPECTION THEREOF

 The Central Government may, by order notified in the Official Gazette require all persons engaged in oil industry or any class of such persons-

(a) to maintain such books, accounts and records relating to their business as may be specified in the order;

(b) to produce such books, accounts and records for inspection and to furnish such information relating thereto to such officer or authority and at such times or in such circumstances as may be specified in the order.

SECTION 22: DIRECTIONS BY THE CENTRAL GOVERNMENT

The Board shall carry out such directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act.

SECTION 22A: EXEMPTION FROM LIABILITY TO PAY INCOME INCOME TAX

Notwithstanding anything contained in the Income-tax Act, 1961-, the Board shall not be liable to pay any income-tax on its income profits or gains.]

SECTION 23 PENALTIES

Any person who,-

(a) being required under this Act to produce any books, accounts or records or furnish any information, fails to produce such books, accounts or records or fails to furnish such information or furnishes information which is false, and which he either knows or believes to be false, or does not believe to be true; or

(b) obstructs any member or any officer or other employee of the Board or any person authorized in this behalf by the Central Government or by the Board in the exercise of any power conferred or in the discharge of any duty imposed on him by or under this Act, shall be punishable with imprisonment which may extend to one year, or with fine which may extend to one thousand

SECTION 24: OTHER PENALTIES

Whoever contravenes or attempts to contravene or abets the contravention of any of the provisions of this Act or of any rule made there under (other than the provisions for the contravention of which section 23-applies) shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both.

SECTION 25: OFFENCES BY COMPANIES

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves, that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

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

SECTION 26: JURISDICTION OF COURTS

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

SECTION 27: PREVIOUS SANCTION OF CENTRAL GOVERNMENT

No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Central Government.

SECTION 28: PROTECTION OF ACTION TAKEN IN GOOD FAITH

No suit, prosecution or other legal proceeding shall lie against the Central Government or the Board or any committee constituted by the Board or any member of the Board or of such committee or any officer or other employee of the Central Government or of the Board or any agent of or any other person authorised by the Central Government or the Board for anything which, is in good faith done or intended to be done under this Act or the rules made there under.

SECTION 29: DISSOLUTION OF THE BOARD

(1) The Central Government may, if satisfied that it is necessary so to do in the public interest, direct by notification in the Official Gazette that the Board shall be dissolved from such date and for such period as may be specified in the notification.

(2) When the Board is dissolved under the provisions of sub-section (1),-

(a) all members, notwithstanding that their term of office has not expired, shall, from the date of dissolution, vacate their offices as such members;

(b) all powers and duties of the Board shall, during the period of dissolution, be exercised and performed by such person or persons as the Central Government may appoint in this behalf;

(c) all funds and other properties vested in the Board shall, during the period of dissolution vest in the Central Government.

(3) As soon as the period of dissolution expires, the Board shall be reconstituted in accordance with the provisions of this Act.

SECTION 30: ACT TO HAVE OVERRIDING EFFECT

The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any enactment other than this Act.

SECTION 31: POWER TO MAKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules" to carry out the purposes 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 term of office and other conditions of service of members, the manner of filling vacancies among and the procedure to be followed in the discharge of their functions;

(b) the powers which may be exercised and the duties which shall be performed by the Secretary to the Boad;

(c) the circumstances in which and the authority by which a member may be removed;

(d) the holding of minimum number of meetings of the Board every year;

(e) the convening of meetings of the Board and of its committees, the procedure to be followed at the meetings of the Board and of its committees for the conduct of business and the number of members which shall form quorum at a meeting;

(f) the maintenance by the Board of records of business transacted by the Board and the submission of copies thereof to the Central Government;

(g) the powers of the Board, its Chairman and other members. Secretary and committees of the Board with respect to the incurring of expenditure;

(h) the conditions subject to which the Board may incur expenditure outside India;

(i) the preparation of budget estimates of receipts and expenditure of the Board and the authority by which the estimates are to be sanctioned;

(j) the form and manner in which the accounts should be kept by the Board;

(k) the custody and investment of the funds of the Board;

(l) the conditions to be observed by the Board in borrowing money;

(m) the conditions subject to which and the manner in which contracts may be entered into, by or on behalf of the Board;

(n) the delegation to the Chairman, Secretary or members or officers of the Board of any of the powers and duties of the Board under this Act;

(o) the additional measures for the promotion of which the Board may render assistance;

(p) the remuneration and other allowances payable to the person or persons referred to in clause

(b) of sub-section (2) ofsection 29 -;.

(q) the fees which the Board may charge for any assistance or services rendered by it under this Act;

(r) the staff which may be employed by the Board and the pay and allowances and leave and other conditions of service of officers (other than those appointed by the Central Government) and Other employees of the Board;

(s) any other matter which is to be or may be prescribed or provided for by rules under this Act

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

SCHEDULE-1

[Seesection 15-( 1 )] Sl. No. Name of item The maximum rate at which duty of excise may be collected 1 2 3 1. Crude oil ... ... ... ... ... ... ... ...[Rupees one thousand per tonne] 2. Natural gas ... ... ... ... ... ... ... ...[Rupees three hundred per thousand cubit; metres.)

OIL INDUSTRY DEVELOPMENT BOARD EMPLOYEES' (CONDUCT,

DISCIPLINE AND APPEAL) RULES, 1988

G.S.R. 20 (E). dated the 11th January, 1988

1.-In exercise of the powers conferred bySec. 31 of the Oil Industry (Development) Act, 1974 (47 of 1974), the Central Government hereby makes the following rules, namely-

RULE 01: SHORT TITLE AND COMMENCEMENT

 (1) These rules may be called the Oil Industry Development Board Employees' (Conduct,

Discipline and Appeal) Rules, 1988.

(2) They shall come into force on the date of their publication in the Official Gazette.

Comments Word used in statute should be given its meaning in ordinary sense when language is explicit.-The argument of inconvenience and hardship is a dangerous one and is only admissible in construction where the meaning of the statute Is obscure and there are alternative methods of construction, where the language Is explicit its consequences are for Parliament, and not for the Courts, to consider.2

When two different words are used in the same statute it may be presumed that those words, even if otherwise anagous have been used with different connotation.-3As per the well-known canon of Interpretation, the word has to be given the meaning at the time the statute was passed. Another important canon of interpretation is that the words are to be construed in accordance with the intention of law maker.4

Mandatory rule and directory rule-Distinction.-The difference between a mandatory rule and a directory rule is that while the former must be strictly observed, in the case of the latter, substantial compliance may be sufficient to achieve the object regarding which the rule is enacted. Whenever a statute prescribes that a particular act is to be done in a particular manner and also lays down that a failure to comply with the said requirement leads to a specific consequence, it would be difficult to hold that the requirement is not mandatory and the specified consequence should not follow. 5

RULE 02: APPLICATION

-These rules shall apply to all employees of the Board, other than-

(i) those in casual employment or paid from contingencies;

(ii) Government servants and the employees of the public sector undertakings working in the Board on deputation basis except to the extent provided for inrule 32-.

RULE 03: DEFINITIONS

-In these rules, unless the context otherwise requires,-

(a) "Act" means theOil Industry (Development) Act, 1974-(47 of 1974):

(b) "appellate authority" means the authority specified as such in the Sch. I annexed lo these rules:

(c) "appointing authority" means the Board and includes any authority specified as such in the Oil Industry Development Board Employees' (General Condition of Service) Rules, 1984 as amended from time to time:

(d) "Board" means the Oil Industry Development Board, established underSec. 3-of the Act:

(e) "Chairman" means the Chairman of the Board:

(f) "competent authority" means any authority empowered by the Board by any general or special order to discharge the function or exercise the powers specified in such order:

(g) "disciplinary authority" means the authority specified as such in Sch.I annexed to these rules, competent to impose any of the penalties specified in rule 24-:

(h) "employee" means a person in the employment of the Board other than casual work charged or contingent staff, and includes an officer of the Board:

(i) "family", in relation to an employee. Includes :

(i) the wife or husband, as the. case may be, of the employee, whether residing with him or not but does not include a wife or husband, as the case may be. separated from the employee by a decree or order of a competent court:

(ii) sons or daughters or step-sons or step-daughters of the employee and wholly dependent on him, but does not include a child or a step-child who is no longer in any way dependent on the employee or of whose custody the employee has been deprived of by or under any law:

(iii) any other person related, whether by blood or marriage, to the employees or to such employee's wife or husband, as the case may be, and wholly dependent on such employee:

(j) "public servant" includes a person as mentioned in Sec. 21 of the Indian Penal Code, 1860 (45 of 1860)-;

(k) "reviewing authority" means the authority specified as such in Sch.I annexed to these rules.

RULE 04: GENERAL

(1) Every employee shall at all times-

(i) maintain absolute integrity:

(ii) maintain devotion to duty: and

(iii) do nothing which is unbecoming of an employee.

(2) Every employee shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under his control and authority.

RULE 05: MISCONDUCT

-Without prejudice to the generality of the term "misconduct", the following acts of omission and commission shall be treated as misconduct :

(1) Theft, fraud or dishonesty in connection with the business or property of (he Board or of property of another person within the premises of the Board.

(2) Taking or giving bribes or any illegal gratification.

(3) Possession of pecuniary resources or property disproportionate to the known source of income by the employee or on his behalf by another person, which the employee cannot satisfactorily account for.

(4) Furnishing false information regarding name, age, father's name, qualification, ability, or previous service or any other matter germane to the employment at the time of employment or during the course of employment.

(5) Acting in a manner prejudicial to the interests of the Board.

(6) Wilful insubordination or disobedience, whether or not in combination with others, of any lawful and reasonable order of his superior.

(7) Absence without leave or over-staying the sanctioned leave for more than four consecutive days without sufficient grounds or proper or satisfactory explanation.

(8) Habitual late or irregular attendance.

(9) Neglect of work or negligence in the performance of duty including malingering or slowing down of work.

(10) Damage to any properly of the Board.

(11) Interference or tampering with any safety devices installed In or about the premises of the Board.

(12) Drunkenness or riotious or disorderly or indecent behaviour in the premises of the Board or outside such premises where such behaviour is related to or connected with the employment.

(13) Gambling within the premises of the establishment.

(14) Smoking within the premises of the establishment where it is prohibited.

(15) Collection without the permission of the competent authority of any money within the premises of the Board except as sanctioned by any law of the land for the time being in force or rules of the Board.

(16) Sleeping while on duty.

(17) Commission of any act which amounts to a criminal offence involving moral turpitude.

(18) Absence from the employee's appointed place of work without permission or sufficient cause.

(19) Purchasing properties, machinery, stores, etc. from or selling properties, machinery, stores, etc.. to the Board without express permission in writing from the competent authority.

(20) Commission of any act subversive of discipline or of good behaviour.

(21) Abetment of or attempt at abetment of any act which amounts to misconduct.

RULE 06: EMPLOYMENT OF NEAR RELATIVES OF THE EMPLOYEES IN ANY COMPANY OR FIRM ENJOINING PATRONAGE OF THE BOARD

(1) No employee shall use his position or influence directly or indirectly to secure employment for any member of his family in any company or Firm enjoying the patronage of the Board.

(2) No employee, of the Board shall, except with the previous sanction of the competent authority, permit any member of his family to accept employment with any company or firm with which he has official dealings or with any company or firm, having official dealings with the Board: Provided that where the acceptance of the employment cannot await sanction of the competent authority, the employment may be accepted provisionally subject to the sanction of the competent authority, to whom the matter shall be reported forthwith.

(3) No employee shall in the discharge of his official duties deal with any matter or give or sanction any contract to any company or firm or any other person if any member of his family is employed in that company or firm or under that person or if he or any member of his family is Interested in such matter or contract in any other manner and the employee shall refer every such matter or contract to his official superior and the matter or the contract shall thereafter be disposed of according to the instructions of the authority to whom the reference is made.

RULE 07: TAKING PART IN DEMONSTRATION AND STRIKES

-No employee shall-

(i) engage himself or participate in any demonstration which Is prejudicial to the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign Slates, public order, decency or morality or which involves contempt of court, defamation or incitement to an offence: or

(ii) resort to or in any way abet, any form of strike or coercion or physical duress In connection with any matter pertaining to his service or any other employee.

RULE 08: CONNECTION WITH PRESS, RADIO OR TELEVISION

(1) No employee shall, except with the previous sanction of the competent authority, own wholly or in part, or conduct or participate in the editing or management of, any newspaper or other periodical publication.

(2) No employee shall, except with the previous sanction of the competent authority or in the bona fide discharge of his duties, participate in a broadcast or telecast or contribute any article or write any letter either in his own name or anonymously, pseudonymously, or in the name of any other person to any newspaper or periodical: Provided that no such sanction shall be required if such broadcast, telecast or contribution is of a purely literary, artistic or scientific character.

RULE 09: CRITICISM OF GOVERNMENT AND THE BOARD

-No employee shall, in any broadcast, telecast or in any document published under his own name or anonymously, pseudonymously or in the name of any other person or in any communication to the press, or in any public utterance, make any statement

(a) which has the effect of adverse criticism of any policy or action of the Central Government or a State Government, or of the Board; or

(b) which is capable of embarrassing the relations between the Board and the public:

Provided that nothing in this rule shall apply to statement made or views expressed by an employee, of a purely factual nature in his official capacity or in due performance of the duties assigned to: Provided further that nothing contained in this clause shall apply to bona fide expression of views by him as an office-bearer of a recognised association for the purpose of safeguarding the conditions of service of such employees or for securing an improvement thereof.

RULE 10: EVIDENCE BEFORE COMMITTEE OR ANY OTHER AUTHORITY

(1) Save as provided in sub-rule (3). no employee shall, except with the previous sanction of the competent authority, give evidence in connection with any enquiry conducted by any person, committee or authority.

(2) Where any sanction has been accorded under sub-rule (1), no employee giving such evidence shall criticise the policy or any action of the Central Government or of a State Government, or of the Board.

(3) Nothing in this rule shall apply to-

(a) evidence given at any enquiry before an authority appointed by the Central Government. Parliament or a State Legislature or the Board:

(b) evidence given in any judicial enquiry: or

(c) evidence given at any departmental enquiry ordered by the Board.

RULE 11: UNAUTHORISED COMMUNICATION OF INFORMATION

No employee shall, except in accordance with any general or special order of the Board or in the performance in good faith of the duties assigned to him, communicate, directly or indirectly any official document or any part thereof or information to any employee, or any other person to whom he is not authorised to communicate such document or information.

RULE 12: GIFTS

-

(1) Save as otherwise provided in these rules, no employee shall accept or permit any member of his family or any other person acting on his behalf, to accept any gift.

Explanation.-The expression "gift" Includes free transport, board, lodging or other service or any other pecuniary advantage when provided by any person oilier than a near relative or a personal friend having no official dealings with the employee.

(2) On occasion, such as. weddings, anniversaries, funerals or religious funetions. when the making of gifts is in conformity with the prevailing religious or social practices, an employee, may accept gifts from his near relatives but he shall make a report to the competent authority if the value of such gift exceeds Rs. 500/.

(3) On occasions such as are specified in sub-rule (2). an employee may accept gifts from his personal friends having no official dealings with him, but he shall make a report to the competent authority if the value of any such gift exceeds Rs. 250/-.

(4) In any other case. an employee shall not accept, or permit any other member of his family or any other person acting on his behalf, to accept any gift without the sanction of the competent authority if the value thereof exceeds Rs. 250/-:

Provided that when more than one gift has been received from the same person within period of 12 months, the matter shall be reported to the competent authority if the aggregate value of the gifts exceeds Rs. 250/-.

RULE 13: DOWRY

No employee shall-

(i) give or take or abet the giving or taking of dowry: or

(ii)demand, directly or indirectly, from the parents or guardian of a bride or bridegroom, as the case may be. any dowry. Explanation.-For the purposes of this rule "dowry" has the meaning as in Dowry Prohibition Act. 1961 (28 of 1961)-.

RULE 14: PRIVATE TRADE OR EMPLOYMENT

(1) No employee shall, except with the previous sanction of the competent authority, engage directly or indirectly in any trade or business, negotiate or undertake any other employment :

Provided that an employee may, without such sanction, undertake honorary work of a social or charitable nature or occasional work of literary, artistic or scientific character, or participate in sports activities as amateur, subject to the condition that his official duties do not thereby suffer.

(2) Every employee shall report to the competent authority if any member of his family is engaged in a trade or business or owns or manages an insurance agency or commission agency.

(3) No employee shall, without the previous sanction of the competent authority, except in the discharge of his official duties, take part In the registration, promotion or management of any bank or other company which is required to be registered under the Companies Act, 1956-(1 of 1956), or any other law for the time being in force, or any co-operative society for commercial purposes:

Provided that an employee may take part in the registration, promotion or management of a Consumer Co-operative Society or House Building Co-operative Society substantially for the benefit of employees of the Board registered under the Co-operative Societies Act, 1912 (2 of 1912)-, or any other law for the time being in force, or of a literary, scientific or charitable society registered under the Societies Registration Act, 1860-(21 of 1860), or any corresponding law in force.

(4) No employee shall accept any fee or any pecuniary advantage for any work done by him for any public body or any private person without the sanction of the competent authority.

RULE 15: INVESTMENT, LENDING AND BORROWING

-No employee shall, save in the ordinary course of business with a bank, the Life Insurance Corporation of India or a firm of standing, borrow money from or lend money to or otherwise place himself under pecuniary obligation to any person with whom he has or is likely lo have official dealings or permit any such borrowing, lending or pecuniary obligation in his name or for his benefit or for the of benefit of any member of his family.

RULE 16: INSOLVENCY AND HABITUAL INDEBTEDNESS

(1) An employee shall avoid habitual indebtedebytedness unless he proves that such indebtedness is the result of circumstances beyond his control and does not proceed from extravagance or dissipation.

(2) An employee who applies to be, or is adjudged or declared insolvent shall forthwilh report the fact to the competent authority.

RULE 17: MOVEABLE, IMMOVEABLE AND VALUEABLE PROPERTY

(1) No employee shall except with the previous sanetion of the competent authority, acquire or dispose of any immoveable property by lease, mortgage, purchase, sale, gift or otherwise, either In his own name or in the name of any member of his family.

(2) No employee shall, except with the previous sanction of the competent authority, enter into any transaction concerning any immoveable or moveable property with a person or a firm having official dealings with the employee or his subordinate.

(3) Every employee shall report to the competent authority every transaction concerning moveable property owned or held by him in his own name or in the name of a member of his family, if the value of such property exceeds Rs. 2500/-.

(4)(i) Every employee shall on his first appointment submit a return of assets and liabilities in the forms specified in Sch. II annexed to these rules giving the particulars regarding:

(a) the moveable property inherited by him, or owned or acquired by him, or held by him on lease or mortgage, either in his own name or in the name of any member of his family or in the name of any other person:

(b) shares, debentures, and cash including bank deposits Inherited by him or similarly owned, acquired, or held by him:

(c) other moveable property inherited by him or similarly owned. acquired or held by him if the value of such property exceeds Rs.

(d) debts and other Ilabilities incurred by him directly or indirectly:

(ii) Every officer of the Board shall submit a return of immoveable property inherited/owned or acquired by him once in every two years in Form I specified in Sch. II. (5) The competent authority may. at any time. by general or special order, require an employee to submit, within a period specified in the order, a full and complete statement of moveable or immoveable property held or acquired by him or on his behalf by any member of his family as may be specified in the order. Such statement shall, if so

required by the competent authority, include details of the means by which, or the source from which such property was acquired.

RULE 18: CANVASSING OF NON NONOFFICIAL OR OTHER INFLUENCE

-No employee shall bring or attempt to bring any outside influence to bear upon any superior authority to further his interests in respect of matter pertaining to his service In the Board. Rule 18-puts ban on canvassing of non-official or other influence by an employee upon the superior authority to further his interest in respect of matter pertaining to his service in the Board.

RULE 19: BIGAMOUS MARRIAGES

(1) No employee shall enter into. or contract a marriage with a person having a spouse living: and (2) No employee, having a spouse living iall enteri or contract a marriage with any person : Provided that the Board may permit an employee to enter into, ontract, any such marriage if it is satisfied that-

(a) such marriage is permissible under the personal law applicable to such employee and the other party to the marriage: and

(b) there are other grounds for so deaing.

(3) An employee who has married or marries a person other than that of Indian nationality shall forthwith interment the fact to the Board.

RULE 20: CONSUMPTION OF INTOXICATING DINKS AND DRUGS

-An employee shall lake due care that the performance of his dresis not affected in any way by the influence of any intoxicating drink or drug.

RULE 21: SUSPENSION

-

(1)The appointing authority any authority to which it is subordinate, or the disciplinary' authority or any a ''pority empowered in that behalf by the Board by general or special order, may place an employee under suspension-

(a) where disciplinary proceeding against him is contemplated or is pending; or

(b) where a case against him in respect of any criminal offence is under investigation, inquiry or trial.

(2) An employee who is detained in police custody, whether on a criminal charge or otherwise, for a period exceeding forty-eight hours shall be deemed to have been suspended with effect from the date of his detention.

(3) Where a penalty of dismissal or removal from service imposed upon an employee under suspension is set aside on appeal or on review under these rules and the case is remitted for further inquiry or action or with any other directions, the order of his suspension shall be deemed to have continued in force on and from the date of the original order of dismissal or removal and shall remain in force until further orders.

(4) Where a penalty of dismissal or removal from service imposed upon an employee is set aside or declared or rendered void in consequence of or by a decision of a court of law and the disciplinary authority on consideration of the circumstances of the case, decides to hold a further inquiry against him on the allegations on which the penalty of dismissal or removal was originally imposed, the employee shall be deemed to have been placed under suspension by the appointing authority from the date of the original order of dismissal or removal and shall continue to remain under suspension until further orders :

Provided that no such further inquiry shall be ordered unless it is intended to meet a situation where the Court has passed an order purely on technical grounds without going into the merits of the case.

(5) An order of suspension made or deemed to have been made under this rule may at any time be revoked by the authority which made or is deemed to have made the order or by any authority to which that authority is subordinate.

RULE 22: SUBSISTENCE ALLOWANCE

(1) An employee under suspension shall be entitled to draw subsistence allowance equal to 50 per cent of his basic pay if the authority empowered to suspend him under sub-rule (1) of rule 21-is satisfied that the employee is not engaged in any other employment or business or profession or vocation. In addition, he shall be entitled to dearness allowance admissible on such subsistence allowance and any other compensatory allowance of which he was in receipt on the date of suspension if the said authority is satisfied that the employee continues to meet the expenditure for which the allowance was granted.

(2) Where the period of suspension exceeds six months, the authority which made or is deemed to have been made the order of suspension shall be competent to vary the amount of subsistence allowance for any period subsequent to the period of the first six months as follows:

(i) the amount of subsistence allowance may be increased to 75 per cent. of basic pay and allowance thereon if. in the opinion of the said authority, the period of suspension has been prolonged for reasons, to be recorded in writing, not directly attributable to the employee under suspension: or

(ii) the amount of subsistence allowance may be reduced to 25 per cent. of basic pay and allowances thereon if, in the opinion of the said authority, the period of suspension has been prolonged due to the reasons, to be recorded in writing, directly attributable to the employee under suspension.

(3) If an employee is arrested by the police on a criminal charge and bail is not granted, no subsistence shall be payable. On grant of bail if the competent authority decides to continue the suspension, the employee shall be entitled to subsistence allowance from the lie he is granted bail.

RULE 23: TREATMENT OF THE PERIOD OF SUSPENSION

(1) When an employee under suspension is reinstated, the competent authority may grant to him the following pay and allowances for the period of suspension:

(a) if the employee is exonerated and not awarded any of the penalties specified in rule 24-, the full pay and allowances which he would have been entitled to if he had not been suspended, less the pay and allowances already paid to him: and

(b) if otherwise, such proportion of pay and allowance as the competent authority may specify.

(2) In a case falling under Cl. (a), the period of absence from duty shall be treated as a period spent on duty. In a case falling under Cl. (b) it shall not be treated as a period spent on duty unless the competent authority so directs.

RULE 24: PENALTIES

-The following penalties may be imposed on an employee for misconduct committed by him or for any other good and sufficient reasons: Minor penalties:

(a) Censure:

(b) withholding of increments of pay with or without cumulative effect:

(c) withholding of promotion:

(d) recovery from pay ol the whole or part of any pecuniary loss caused to the Board, by negligence or breach orders. Major penalties :

(e) reduction to a lower grade or post, or to a lower stage in a time scale;

(f) removal from service which shall not be a disqualification for future employment:

(g) dismissal: Explanation.-The following shall not amount to a penalty within (he meaning of this rule :

(i) withholding of increment of an employee on account of his work being found unsatisfactory or not being of the required standard, or for failure to pass a prescribed test or examination:

(ii) stoppage of an employee at the efficiency bar in a time scale on the ground of his unfitness to cross such bar;

(iii) non-promotion, whether in an officiating capacity or otherwise, of an employee, lo a higher post for which he may be eligible for consideration but for which he is found unsuitable after consideration of his case;

(iv) reversion to a lower grade or post, of an employee officiating in a higher grade or post, on the ground that he is considered, after trial, to be unsuitable for such higher grade or post, or on administrative grounds unconnected with his conduct:

(v) reversion to his previous grade or post, of on employee appointed on probation to another grade or post. during or at the end of the period of probation, in accordance with the terms of his appointment:

(vi) termination of service-

(a) of an employee appointed on probation during or at the end of the period of probation, in accordance with the terms of his appointment:

(b) of an employee appointed in a temporary capacity otherwise than under a contract or agreement, on the expiration of the period for which he was appointed, or earlier in accordance with the terms of his appointment:

(c) of an employee appointed under a contract or agreement, in accordance with the terms of such contract or agreement : and

(d) of any employee on reduction of establishment.

RULE 25: DISCIPLINARY AUTHORITY

-The disciplinary authority, specified in Sch. I annexed to these rules, or any higher authority may impose any of the penalties specified inrule 24-on any employee.

RULE 26: Procedure for imposing major penalties

(1) No order imposing any of the major penalties specified in CIs. (e), (f) and (g) ofrule 24-shall be issued except after an inquiry is held in accordance with this rule.

(2) Whenever the disciplinary authority is of the opinion that there are grounds for inquiring into the truth of any imputation of misconduct or misbehavior against an employee, it may itself inquire into or appoint any officer under this rule (hereinafter called the inquiring authority) to inquire into the truth thereof.

(3) Where it is proposed to hold an inquiry, the disciplinary authority shall frame definite charges on the basis of the allegations against the employee. The charges, together with a statement of the allegations, on which they are based, a i'st of documents by which and a list of witnesses by whom, the articles of charge are proposed to be sustained, shall be communicated in writing to the employee, who shall be required to submit within such time as may be specified by the disciplinary authority (not exceeding 15 days) a written statement whether he admits or denies any of or all the articles of charge.

Explanation.-It shall not be necessary to show any documents listed with the articles of charge or any other documents to the employee at this stage.

(4) On receipt of the written statement of the employee, or if no such statement is received within the time specified, an inquiry may be held by the disciplinary authority itself, or by any other officer appointed as an inquiring authority under sub-rule (2):

Provided that it may not be necessary to hold an inquiry in respect of the charges admitted by the employee in his written statement. The disciplinary authority shall, however, record its findings on each charge.

(5) Where the disciplinary authority itself inquires or appoints an inquiring authority for holding an inquiry, it may, by an order appoint an officer to be known as the "Presiding Officer" to present on its behalf the case in support of the articles of charge.

(6) The employee may take (he assistance of any other officer but may not engage a legal practitioner for the purpose.

(7) On the date fixed by the inquiring authority, the employee shall appear before the inquiring authority at the time, place and date specified in the notice. The inquiring authority shall ask the employee whether he pleads guilty or has any defence to make and if he pleads guilty to any of the articles of charge, the inquiring authority shall record the plea, sign the record and obtain the signature of the employee concerned thereon. The inquiring authority shall return a finding of guilty in respect of those articles of charge to which the employee concerned pleads guilty.

(8) If the employee does not plead guilty, the inquiring authority shall adjourn the case to a later date not exceeding thirty days, after recording an order that the employee may, for the purpose of preparing his defence :

(i) inspect the documents listed with the charge-sheet ;

(ii) submit a list of additional documents and witnesses that he wants to examine: and

(iii) be supplied with the copies of the statements of witnesses, tiffany, listed in the charge -sheet.

Note.-Relevancy of the additional documents and the witnesses referred to in Cl. (ii) will have to be given by the employee concerned and the document and the witnesses shall be summoned if the inquiring authority Is satisfied about their relevance to the charges under inquiry.

(9) The inquiring authority shall ask the authority in whose custody or possession the documents are kept by a requisition notice, for the production of the documents on such date as may be specified.

(10) the authority in whose custody or possession the requisitioned documents are, shall arrange to produce the same before the inquiring authority on the date, place and time specified in the requisition notice :

Provided that the authority having the custody or possession of the requisitioned documents may claim privilege if he Is satisfied that the production of such documents will be against the public Interest or the Board and inform in writing the inquiring authority accordingly.

(11) On the date fixed for the inquiry, the oral and documentary evidences by which the articles of charge are proposed to be proved shall be produced by or on behalf of the disciplinary authority. The witnesses shall be examined by or on behalf of the presenting officer and may be cross examined by or on behalf of the employee. The Presenting Officer shall be entitled to re-examine the witnesses on any points on which they have been cross-examined, but not on a new matter without the leave of the inquiring authority. The inquiring authority may also put such question to the witnesses as it thinks fit.

(12) Before the close of the prosecution case, the inquiring- authority may, in its discretion allow the Presenting Officer to produce evidence not included in the charge-sheet or may itself call for new evidence or recall or re-examine any witness. In such case the employee shall be given opportunity to inspect the documentary evidence before it is taken on record: or to cross-examine a witness, who has been so summoned.

(13) When the case for the disciplinary authority is closed, the employee shall be required to state his defence, orally or in writing, as he may prefer. If the defence is made orally, it shall be recorded and the employee shall be required to sign the record. In either case a copy of the statement of defence shall be given to the Presiding Officer, if any.

(14) The evidence on behalf of the employee shall then be produced. The employee may examine himself in his own behalf if he so prefers. The witnesses produced by the employee shall then be examined and shall be liable to cross- examination, re-examination and examination by the inquiring authority according to the provision applicable to the witnesses for the disciplinary authority.

(15) The inquiring authority may after the employee closes his case and shall. If the employee has not examined himself, generally question him on the circumstances appearing against him in the evidence for the purpose of enabling the employee to explain any circumstances appearing in the evidence against him.

(16) The inquiring authority may, after completion of the production of evidence, hear the Presenting Officer, if any, and the employee, or permit them to file written brief of their respective cases, if they so desire.

(17) If the employee does not submit the written statement of defence referred to in sub-rule (3) on or before the date specified for the purpose or does not appear in person, or through the assisting officer or otherwise fails or refuses to comply with any of the provisions of these rules, the inquiring authority may hold the inquiry ex parte.

(18) Whenever any inquiring authority, after having heard and recorded the whole or any part of the evidence in an inquiry cases to exercise jurisdiction therein, and Is succeeded by another inquiring authority which has. and which exercises, such jurisdiction, the inquiring authority so succeeding may act on the evidence so recorded by its predecessor, or partly recorded by its predecessor and partly recorded by itself :

Provided that if the succeeding inquiring authority is of the opinion that further examination of any of the witnesses whose evidence has already been recorded is necessary In the interest of justice, it may recall, examine, cross- examine and re-examine any such witness as hereinbefore provided.

(19) (i) After the conclusion of the inquiry, a report shall be prepared and it shall contain-

(a) the articles of charge and the statement of the imputations of misbehavior:

(b) the defence of the employee in respect of each article of charge:

(c) an assessment of the evidence in respect of each article of charge:

(d) the findings on each article of charge and the reasons therefore Provided that if in the opinion of the inquiring authority the proceedings of the inquiry establish any article of charge different from the original articles of the charge, it may record its findings on such article of charge: Provided further that the findings on such article of charge shall not be recorded unless the employee has either admitted the facts on which article of charge is based or has had a reasonable opportunity of defending himself against such article of charge. (ii) The inquiring authority where it is not itself the disciplinary authority, shall forward to the disciplinary authority the records of inquiry which shall include -

(a) the report of the inquiry prepared by it under Cl. (i) :

(b) the written statement of defence, if any, submitted by the employee referred in sub-rule (13) ;

(c) the oral and documentary evidence produced in the course of the inquiry :

(d) written briefs referred to in sub-rule (16). if any; and

(e) the order, if any. made by the disciplinary authority and the inquiring authority in regard to the inquiry.

RULE 28: PROCEDURE FOR IMPOSING MINOR PENALTIES

(1) Where it is proposed to impose any of the minor penalties specified in CIs. (a) to (d) of rule 24, the employee concerned shall be informed in writing of the imputations of misconduct or misbehavior against him and given an opportunity to submit his written statement of defence within a specified period not exceeding 15 days, the defence statement, if any, submitted by the employee shall be taken into consideration by the disciplinary authority before passing an order.

(2) The record of the proceedings shall include-

(i) a copy of the statement of imputations of misconduct or misbehavior delivered to the employee:

(ii) his defence statement, if any: and

(iii) the orders of the disciplinary authority together with the reason thereof.

RULE 29: Communication of orders

-Orders made by the disciplinary authority under rule 27-orrule 28-shall be communicated to the employee concerned, who shall also be supplied with a copy of the report of inquiry, if any.

RULE 30: Common proceedings

Where two or more employees are concerned in a case, the authority competent to impose a major penalty on all such employees make an order directing that disciplinary proceedings against all of them may be taken in a common proceeding and an authority specified by him may function as the disciplinary authority for the purpose of such common proceedings.

RULE 31: Special procedure in certain cases

Notwithstanding anything contained in rule 26-,27-or28-, the disciplinary authority may impose any of the penalties specified inrule 24-in any of the following circumstances :

(i) where the employee has been convicted on a criminal charge, or on the strength offacts or conclusions arrived at by a judicial trial: or

(ii) where the disciplinary authority Is satisfied, for reasons to be recorded by it in writing, that it is not reasonably practicable to hold an inquiry in the manner provided in these rules: or (iii) where the Board is satisfied that in the interest of the security of the Board, it is not expedient to hold any inquiry in the manner provided in these rules.

RULE 32: Employees on deputation from the Central Government, the State

Government or public sector undertakings, etc

(1) Where an order of suspension is made or disciplinary proceeding is taken against an employee, who is on deputation to the Board from the Central Government or a State Government, or another public sector undertaking, or a local authority, the authority lending his services (hereinafter referred to as the lending authority, shall forthwith be informed of the circumstances leading to the order of his suspension, or the commencement of the disciplinary proceeding, as the case may be.

(2) In the light of the findings in the disciplinary proceeding taken against such employee-

(a) if the disciplinary authority is of the opinion that any of the minor penalties should be Imposed on him. It may pass such orders as It deems necessary after consultation with the lending authority: Provided that in the event of a difference of opinion between the disciplinary authority and the lending authority, the services of the employee shall be placed at the disposal of the lending authority :

(b) if the disciplinary authority is of the opinion that any of the major penalties should be imposed on him, it shall place the service of such employee at the disposal of the lending authority and transmit to the lending authority the proceedings of the inquiry for such action as it may deem necessary.

(3) If the employee submits an appeal against an order imposing a minor penalty on him under Cl. (a) of sub-rule (2), the same shall be disposed of after consultation with the lending authority:

Provided that if there is a difference of opinion between the appellate authority and the lending authority, the services of the employee shall be placed at the disposal of the lending authority, and the proceeding of the case shall be transmitted to that authority for such action as it may deem necessary.

RULE 33: APPEALS

(1) An employee may appeal against an order Imposing upon him any of the penalties specified in rule 21 or against the order of suspension referred to inrule 21-and such appeal shall be to the authority specified in Sch. I annexed to these rules.

(2) An appeal shall be preferred within one month from the date of communication of the order appealed against. The appeal shall be addressed to the appellate authority specified in Sch. I annexed to these rules and submitted to the authority whose order is appealed against. The authority whose order is appealed against shall forward the appeal together with its comments and the records of the case to the appellate authority within 15 days. The appellate authority shall consider whether the findings are justified or whether the penalty is excessive or inadequate and pass appropriate orders within three months of the date of appeal. The appellate authority may pass order confirming, enhancing, reducing or setting aside the penalty or remitting the case to the authority which imposed the penalty or to any other authority with such direction as it may deem fit in the circumstances of the case: Provided that if the enhanced penalty which the appellate authority proposes to impose is a major penalty specified in Cls. (c), (f) and (g) of rule 24-and an inquiry as provided in rule 26-has not already been held in the case, the appellate authority shall direct that such inquiry be held in accordance with the provisions of rule 26 and thereafter consider the record of the inquiry and pass such orders as it may deem proper. If the appellate authority decides to enhance the punishment but an inquiry has already been held as provided in rule 26, the appellate authority shall give a show-cause notice to the employee as to why the enhanced penalty should not be imposed upon him. The appellate authority shall pass Final order after taking into account the representation, if any, submitted by the employee.

RULE 34: REVIEW

-Notwithstanding anything contained in these rules, the reviewing authority, as specified in Sch. I annexed to these rules, may call for the record of the case within six months of the date of the final order and after reviewing the case pass such orders thereon as it may deem fit : Provided that if the enhanced penalty, which the reviewing authority proposes to impose, is a major penalty specified in CIs. (e), (f) or (g) of rule 24-and an inquiry as provided under rule 26-has not already been held in the case, the reviewing authority shall direct that such an inquiry be held in accordance with the provisions of rule 26- and thereafter consider the record of the inquiry and pass such order as it may deem proper. If the appellate authority decides to enhance the punishment but an inquiry has already been held in accordance with the provisions of rule 26-, the reviewing authority shall give show-cause notice to the employee's to why the enhanced penalty should not be imposed upon him. The reviewing authority shall pass final order after taking into account the representation, if any, submitted by the employee.

RULE 35: SERVICE OF ORDERS, NOTICES, ETC

-Every order, notice and other process made or Issued under these rules shall be served in person on the employee concerned or communicated to him by registered post at his last known address.

RULE 36: POWER TO RELAX TIME --LIMIT AND TO CONDONE DELAY

-Save as otherwise expressly provided In these rules, the authority competent under these rules to make any order may for good and sufficient reasons or if sufficient cause is shown, extend the time specified in these rules for anything required to be done under these rules or condone any delay.

RULE 37: REMOVAL OF DOUBTS

Where a doubt arises as to the interpretation of any of these rules, the matter shall be referred to the Central Government for its decision.

SCHEDULE 02:  Return of Assets and Liabilities on First Appointment As on the 31st December, 19........

1. Name of the employee (in block letters) 2. Post held and place of posting 3. Total annual income from all sources during the Calender year immediately preceding the 1st day of January, 19.......... 4. Declaration ' I hereby declare that the return enclosed namely, Forms I to V, are complete, true and correct as on ...................... to the best of my knowledge and belief. In respect of information due to be furnished by me under the provisions of sub-rule (4) of the rule 17 of the Oil Industry Development Board Employees (Conduct, Discipline and Appeal) Rules, 1987-. Date.............. Signature....................... Note.- I. This return shall contain particulars of all assets and liabilities of the employee, either in his own name or In the name of any other person. 2. If an employee is a member of Hindu Undivided Family with co- parcenary rights in the properties of the family either as a 'Karta' or as a member he should Indicate in the return in Form No. I the value of his share in such property and where it is not possible to indicate the exact value of such share, its approximate value. Suitable explanatory notes may be added, wherever necessary.