GOVERNMENT OF PUDUCHERRY

PUDUCHERRY CODE
VOLUME - IV

LAW DEPARTMENT
PUDUCHERRY
 THE PUDUCHERRY CODE
VOLUME-IV

Published by the Law Department, Government of Puducherry.

 ©

The Law Department, Government of Puducherry.

FIRST EDITION 2012

(As codified upto 31st March, 2012)

Compiled and Codified by

Thiru K. Oumabady,
Assistant Library & Information Officer,
Law Department, Puducherry.

Printed by the Directorate of Stationery and Printing, Puducherry - 605009.

 MESSAGE

There has been a persistent demand from the lawyers and the public for
codification of all the laws enacted in Puducherry. On my request in this connection, the
revised editions of Puducherry Code would be made available to them shortly. Now,
the Law Department, Puducherry have completed the arduous task of bringing out the
revised edition of the Puducherry Code Volumes I, II and III. In addition, the first
edition of the Puducherry Code Volume IV containing Acts from 1973 till date has also
been prepared for publication.

I believe that this Code will be highly useful to all concerned. I place on record
my appreciation to the Law Department for their yeomen service in this regard.

(N. RANGASAMY)
Puducherry, CHIEF MINISTER
19-04-2012. GOVERNMENT OF PUDUCHERRY
 MESSAGE
The Law Department, Puducherry has brought out Puducherry Code Volumes I,
II and III long back. Acts upto 1973 were incorporated in those books. Presently the
Department has successfully revised and reprinted the Codes with all up to date
amendments.
The Department has already completed the works relating to the revised edition
of Puducherry Code Volumes I, II and III and this was a tremendous and appreciable
effort on their part. This apart, the Department has also made the maiden attempt of
compiling and codifying all the Acts from 1973 to till date in this first edition of the
Puducherry Code Volume IV.
It is hoped and trusted that this book would be of immense help and assistance
to all the end-users, more specifically the Executives, the Legislators, the Bench,
the Bar and the general public.
I congratulate the valuable service and the painstaking endeavour rendered by
the Law Department in this new venture.

Puducherry, M. SATHIAVATHY, I.A.S.,

19-04-2012 CHIEF SECRETARY TO GOVERNMENT
 FOREWORD

This fourth volume of the Puducherry Code is most welcome. It covers a long
period of about 40 years from 1973 up to now. During this period lawyers and
administrators were at a loss to know the law holding the field in which they were
called upon to putforth arguments or to take decisions. They have now a handy and
reliable tool. The present volume contains not only the original pieces of legislations but
also all subsequent amendments. The statements of objects and reasons are also
reproduced which help to get the spirit of the law and to render its comprehension safe.
This volume consists of three parts; the first one consists of the Acts passed by
the Legislative Assembly of Puducherry; the second contains Regulations made by the
Union Government in exercise of their powers under article 240 of the Constitution; the
third part is made of one piece of legislation extending to Puducherry an Act of
TamilNadu purportedly in exercise of the powers conferred to the Union Government
by the Puducherry Administration Act, 1962. This brings home the existence of the
three sources of legislations in the Union territory. Of course we have to add the
considerable number of statutes of the Parliament which apply automatically here.
Now that we have all the pieces of legislations specific to Puducherry available in
form of Code in four volumes, the users of the code would desire an index covering all
the volumes in an alphabetic order. That tool will save much time to the daily users of
the code. The considerable work so far done in publishing within a short period of 18
months the four volumes makes me feel that such complementary work also will soon
see the light of the day.
I take pleasure in felicitating Thiru K. Oumabady, the Librarian of the
Law Department who has made meticulously all the necessary spade work and
Thiru. J.C.P. Mariadassou, the Law secretary who has piloted relentlessly the work. The
users of this book owe a tribute of gratitude to those two persons for the handy tool
provided to them.

Puducherry, JUSTICE DR. DAVID ANNOUSSAMY

16th April 2012. FORMER JUDGE OF THE MADRAS HIGH COURT
 PREFACE
It gives me immense pleasure in bringing out the first edition of Puducherry
Code Volume IV. Legislations including all amendments thereto from 1973 till date and
the statements of objects and reasons for all legislations have been incorporated in this
maiden venture. With the publication of the Puducherry Code Volume IV, the task of
compilation of all Puducherry Acts updated from 1964 till date has been accomplished.

I hope and wish that this Volume would be quite handy and helpful to the
Bench, the Bar and the Executives in performance of their arduous task to the same
extent and degree as the other Volumes of the Code.

I deem it a privilege to place on record my appreciation to Thiru K. Oumabady,

Assistant Library and Information Officer of the Law Department, Puducherry and
Thiru N. Rajendiran, Retired Under Secretary (Law), without whose sincere and
unstinted co-operation, it would have been impossible to bring out this edition within
such a short time span.

My heart felt thanks are also due to Thiru. M. Krishnamoorthy, Director and
Thiru. D. Rajasekaran, Deputy Director of the Directorate of Stationery and Printing,
Puducherry for extending their utmost co-operation to finish the printing work of all
the four Volumes with full speed in record time.

Puducherry, JOHN CLAUDE POMPEI MARIADASSOU, M.A., M.L., D.F.L.,

17-04-02012 LAW SECRETARY TO GOVERNMENT
 PUDUCHERRY CODE
Volume – IV
CONTENTS
PART - I

Year No Short Title Page

1973 3 The Puducherry Agricultural Produce Markets Act, 1973. 1

1973 4 The Puducherry Non-Motorised Vehicles Tax

Abolition Act, 1973 24

1974 5 The Puducherry (Public) Health Act, 1973 27

1974 7 The Puducherry Housing Board Act, 1973 86

1974 8 The Puducherry Occupants of Kudiyiruppu (Conferment

of Ownership) Act, 1973. 140

1974 9 The Puducherry Land Reforms ( Fixation of Ceiling on

Land) Act, 1973. 160

1980 4 The Puducherry Excise (Extension) Act, 1980. 212

1980 10 The Indian Succession (Extension to Puducherry) Act, 1980 215

1980 11 The Puducherry Khadi and Village Industries

Board Act, 1980 219

1982 8 The Women’s and Children’s Institutions (Licensing)

Act (Extension to Puducherry) Act, 1981 234

1986 7 The Anglo-French Textiles Limited (Acquisition and

Transfer of Textile Undertaking) Act, 1986 237

1986 10 The Slum Areas (Improvement and Clearance)

(Puducherry Amendment) Act, 1986 256

1987 8 The Puducherry Apartment Ownership Act, 1987 264

1987 9 The Puducherry School Education Act, 1987 278

Year No Short Title Page

1988 11 The Puducherry Eyes (Authority for use for Therapeutic

Purposes) Act, 1988. 305

1989 7 The Puducherry Relief from Indebtedness Act, 1987 311

1990 7 The Puducherry Co-operative Societies (Appointment of

Special Officers) Act, 1990 323

1994 6 The Puducherry District Planning Committee Act, 1994 328

1994 13 The Puducherry Members of the Legislative Assembly

(Prevention of Disqualification) Act, 1994 335

1994 15 The Puducherry Limitation (Repeal of Local

Laws) Act, 1994 340

2000 6 The Puducherry Open Places (Prevention of

Disfigurement) Act, 2000 344

2001 8 The Puducherry Compulsory Elementary

Education Act, 2000 350

2002 2 The Puducherry Women’s Commission Act, 2001 355

2003 2 The Puducherry Ground Water (Control and

Regulation) Act, 2002 368

2004 8 The Puducherry Board of Secondary and Higher

Secondary Education Act, 2003 383

2005 1 The Puducherry Protection of Interests of Depositors in

Financial Establishments Act, 2004 417

2007 9 The Puducherry Value Added Tax Act, 2007 430

2008 6 The Puducherry Marine Fishing Regulation Act, 2008 524

2010 10 The Puducherry Prevention of Anti-Social Activities

Act, 2008 541
 PART - II

Year No Short Title Page

1976 1 The Union Territories Relief of Agricultural

Indebtedness Regulation, 1976. 551

1976 4 The Puducherry Irrigation (Levy of Betterment

Contribution) Regulation, 1976 556

1976 5 The Puducherry Irrigation Cess Regulation, 1976 566

1977 1 The Yanam Land Reforms (Ceiling on Agricultural

Holdings) Regulation, 1977. 577

PART – III

Extension of the Tamil Nadu Debt Relief Act, 1976 to the

Union Territory of Puducherry. 601
 PART – I

THE PUDUCHERRY AGRICULTURAL PRODUCE MARKETS ACT, 1973.

(No. 3 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER – I
PRELIMINARY

1. Short title, extent and commencement

2. Definitions.

CHAPTER – II

NOTIFIED AREA, MARKET COMMITTEE, MARKETS, NOTIFIED MARKET AREAS

AND TRADING IN AGRICULTURAL PRODUCE IN SUCH AREAS.

3. Declaration of notified area.

4. Establishment of market committee.
5. Establishment of markets.
6. Trading in Agricultural produce in notified area.
7. Agricultural produce to be sold in the market only.
8. Incorporation of market committee.
9. Constitution of market committee by election.
10. Project Agricultural Officer to be ex-officio member.
11. Term of office of member, etc.
12. Special provision where there is delay in the re-constitution
of new market committee.
13. Sub-committee, Special Committee and delegation of powers.
14. Meetings.
15. Appointment and salaries of officers and servants of market committee.
16. Super session of market committee.
 2

CHAPTER – III

FINANCE, CONTRACT AND PROPERTY.

17. Execution of contracts.

18. Levy of market fee by market committee.
19. Levy of subscriptions for market reports, etc.
20. Market Committee Fund.
21. Purposes for which the Fund may be expended.
22. No trade allowance permissible except as prescribed by rules or bye-laws.
23. Power to borrow.
24. Power to write off irrecoverable fee, market fee, etc.
25. Recovery of sums due to Government from market committee.
26. Liability of Chairman, Vice-Chairman and members for loss,
waste or misapplication of property.

CHAPTER – IV

OFFENCES AND PENALTIES.

27. Penalties.
28. Trial of offences.
29. Liability of accused to pay fee, market fee or other amount.
30. Composition of offences.
31. Power of Magistrate to recover summarily fee, market fee or other amount.

CHAPTER – V
MISCELLANEOUS.

32. Power of Director to decide certain questions.

33. Power of Government to call for records and pass orders.
34. Registration of document executed on behalf of a market committee.
35. Saving.
36. Act to over ride other laws.
37. Exemption.
38. Power to remove difficulties.
39. Power to make rules.
40. Power to make bye-laws.

NOTES ON CLAUSES

______
 3

THE PUDUCHERRY AGRICULTURAL PRODUCE MARKETS ACT, 1973.

(No. 3 of 1974)
(28-03-1974)
AN ACT
to provide for the better regulation of buying and selling of agricultural produce
and the establishment and proper administration of markets for agricultural produce in
the Union territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-fourth

Year of the Republic of India as follows: -

CHAPTER – I
PRELIMINARY
Short title, extent and commencement
1. (1) This Act may be called the Puducherry Agricultural Produce Markets Act,
1973.
(2) It extends to the whole of the Union territory of Puducherry.
†(3) It shall come into force on such date as the Government may, by
notification, appoint; and different dates may be appointed for different areas and for
different provisions of this Act.

Definitions.
2. In this Act, unless the context otherwise requires, -
(i) "agricultural produce" means any produce (whether processed or not) of
agriculture, horticulture, animal husbandry, apiculture, pisciculture and
forest declared by the Government, by notification, to be an agricultural
produce for the purposes of this Act;
(ii) "Collector" means the Chief Officer-in-charge of the revenue
administration of the Union territory of Puducherry, and includes any
other officer appointed by the Government to exercise all or any of the
powers of a Collector under this Act;
(iii) "Co-operative marketing society" means any co-operative society
registered or deemed to be registered under the Puducherry
Co-operative Societies Act, 1965 (11 of 1965), which has, as its principal
object, the promotion of the sale of agricultural produce grown, reared
or produced by its members;
(iv) "Director" means the Director of Agriculture, Puducherry, and includes
any other person or authority authorised by the Government, by
notification, to perform the functions of the Director under this Act for
such area as may be specified in the notification;
† This Act came into force w.e.f 01-05-1975 vide Notification-I issued under S.O. 19
published in the Gazette of Puducherry No.19 dated 13-05-1975
 4

(v) "Government" means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the
Constitution;
(vi) "market" means any market established under sub-section (1) of section
5;
(vii) "market committee" means any market committee established under
section 4;
(viii) "notification" means a notification published in the Official Gazette;
(ix) "notified agricultural produce" means any agricultural produce specified
in the notification under sub-section (3) of section 3 as in force for the
time being;
(x) "notified area" means any area notified under section 3 as in force for the
time being;
(xi) "notified market area" means any area notified under sub-section (2) of
section 5 as in force for the time being;
(xii) "prescribed" means prescribed by rules made under this Act;
(xiii) "producer" means any person who grows, rears or produces by himself
or by hired labour or otherwise any agricultural produce, but does not
include a dealer or broker in that produce although he may grow, rear
or produce that agricultural produce;
(xiv) "Registrar" means the Registrar of Co-operative Societies, Puducherry.

CHAPTER – II

NOTIFIED AREA, MARKET COMMITTEE, MARKETS,

NOTIFIED MARKET AREAS AND TRADING IN AGRICULTURAL PRODUCE IN
SUCH AREAS.

Declaration of notified area.

3. (1) The Government may publish in such manner as may be prescribed, a draft
of a notification declaring its intention of regulating the purchase and sale of such
agricultural produce in such area as may be specified in such draft.

(2) The draft published under sub-section (1) shall state that any objections or
suggestions which may be received by the Government from any person within a
period of one month from the date of publication of such draft shall be taken into
consideration.

(3) After the expiration of the period specified in such draft and after
considering such objections and suggestions as may be received before such expiration,
the Government may finally publish a notification declaring the area specified in the
draft notification or any portion thereof, to be a notified area for the purposes of this
Act in respect of any agricultural produce specified in the draft notification.
 5

(4) Subject to the provisions of sub-sections (1), (2) and (3), the Government
may, -
(a) exclude from any notified area, any area comprised
therein, or
(b) include in any notified area, any new area, or
(c) exclude from, or include in, the notification issued under
sub-section (3), any agricultural produce.

Establishment of market committee.

4. The Government shall establish, by notification, a market committee for every
notified area and it shall be the duty of the market committee to enforce in such notified
area, the provisions of this Act, the rules and bye-laws made thereunder.

Establishment of markets.
5. (1) Every market committee shall establish in the notified area such number of
markets providing for such facilities as the Government may, from time to time direct,
for the purchase and sale of any notified agricultural produce and shall provide such
facilities in such markets as may be specified by the Government from time to time by a
general or special order.

(2) The Government shall, as soon as may be, after the establishment of a
market by a market committee under sub-section (1), declare, by notification, the area of
the market and such area adjoining thereto as may be specified in such notification to be
a notified market area for the purposes of this Act in respect of any notified agricultural
produce.

(3) The Government may, by notification, alter the limits of any notified market
area either by altering the area of the market or the area adjoining thereto.

Trading in Agricultural produce in notified area.

6. (1) No person shall, within a notified area, set up, establish or use, or continue
or allow to be continued, any place for the purchase, sale, storage, weighment, pressing
or processing of any notified agricultural produce, except under and in accordance with
the conditions of a licence granted to him by the market committee:

Provided that the market committee may exempt from the provisions of this
sub-section any person who carries on the business of purchasing or selling any notified
agricultural produce in any quantity not exceeding, that prescribed.

Provided further that a producer selling his notified agricultural produce

which has been grown, reared or produced by him or a Co-operative Marketing Society
selling notified agricultural produce which has been grown, reared or produced by any
of its members, shall be exempt from the provisions of this sub-section, but the
 6

Government may in public interest and for reasons to be recorded in writing withdraw
for such period as may be prescribed such exemption in respect of any such producer or
Co-operative Marketing Society or all of them or in case of breach, impose such penalty
as may be prescribed.

(2) Nothing contained in sub-section (1) shall apply to a person purchasing

notified agricultural produce for his own domestic consumption in any quantity not
exceeding that prescribed.

(3) A licence under sub-section (1) may be refused to a person –

(i) whose licence was cancelled and three years have not elapsed
since the date of its cancellation; or

(ii) who has been convicted of any offence or been guilty of

misconduct which, in the opinion of the market committee,
affects the said person’s integrity as a man of business; or

(iii) in regard to whom the market committee is satisfied, after

such inquiry as it considers adequate, that he is a benamidar
for, or a partner with, any other person to whom a licence
may be refused under clause (i) or clause (ii); or

(iv) if the market committee finds that the grant of a licence in

respect of any place situated within a distance of ten Kilometres
from the notified market area is likely to affect the levy of
market fees under section 18 or the transaction of sale or
purchase of the notified agricultural produce in the market.

(4) A licence granted under sub-section (1) shall be in such form and subject to
the payment of such fees as may be prescribed.

(5) A licence granted under sub-section (1) shall be valid for a financial year
and may be renewed from year to year and the provisions of this Act shall, so far as
may be, apply in relation to the renewal of a licence as they apply in relation to the
grant of a licence.

(6) Every person to whom a licence is granted under sub-section (1) shall
comply with the provisions of this Act, the rules and by-laws made thereunder and the
conditions of the licence.

(7) If a market committee is satisfied either on a reference made to it in this

behalf, or otherwise, that –
 7

(a) a licence granted under sub-section (1) has been obtained by

misrepresentation or fraud; or
(b) the holder of a licence has contravened or failed to comply
with, any of the provisions of this Act or the rules or bye-
laws made thereunder or any of the conditions of the
licence.

then, without prejudice to any other penalty to which the holder of the licence
may be liable under this Act, the market committee may, subject to such rules as
may be made under this Act, cancel or suspend the licence after giving the
holder of the licence a reasonable opportunity of showing cause against such
cancellation or suspension.

(8) Any person aggrieved by the decision of the market committee refusing to
grant, or cancelling or suspending a licence may, within such time as may be
prescribed, appeal to such authority and in such manner as may be prescribed.

Agricultural produce to be sold in the market only.

7. Notwithstanding anything contained in sub-section (1) of section 6, all agricultural
produce brought to the notified market area by a producer shall be sold only in the
market.
Incorporation of market committee.
8. Every market committee established under section 4, shall be a body corporate by
the name of the notified area for which it is established and shall have perpetual
succession and a common seal with power to acquire, hold and dispose of property and
may, by its corporate name, sue and be sued.

Constitution of market committee by election.

9. (1) Every market committee shall consist of members not exceeding eighteen
(including the ex-officio member provided under section 10) and shall be constituted in
the manner hereinafter specified.

(2) Each of the following electorates shall elect as members, from among the
persons comprising it, to the market committee: -

(a) producers of the notified agricultural produce in the notified

area; and
(b) persons licensed under sub-section (1) of section 6 in the
notified area in respect of the notified agricultural produce.
(3) The number of members to be elected under clause (a) of sub-section (2)
shall be nine and the number of members to be elected under clause (b) of that
sub-section shall be four.
 8

(4) The Government may appoint to every market committee one producer
residing in the notified area on the recommendation of the Registrar to represent co-
operative interests.

(5) The Government may appoint to every market committee such number of
members as it thinks fit not exceeding three:

Provided that where a market committee is established for any notified area for
the first time –
(i) the Government shall appoint all the members of such
Committee for a period of one year; and
(ii) if before the expiry of the period of one year aforesaid the
elections of members to the market committee could not be
held or if, for any reason the Government considers it
desirable that the market committee should consist solely of
members appointed by it, it may extend the term of office of
all or any of the members appointed under clause (i), or
appoint new members in their places for such period or
periods not exceeding one year in the aggregate as it thinks
fit.

Project Agricultural Officer to be ex-officio member.

10. The Project Agricultural Officer having jurisdiction over the notified area shall be
an ex-officio member of the market committee established for such area.
Explanation: - Where there are two or more Project Agricultural Officers having
jurisdiction over different portions of a notified area, the Government shall decide
which of such officers shall be a member of the market committee of the area.

Term of office of member, etc.

11. (1) The term of office of an elected member shall be five years from the date of
occurrence of the vacancy, to which he was elected or from the date of his election
whichever is later. The term of office of a member appointed under sub-section (5) of
section 9, shall expire on the date on which the term of office of elected members
expires:

Provided that a member elected under clause (b) of sub-section (2) of section 9
shall cease to hold his office if he ceases to be a member of the electorate by which he
was elected.

(2) A member of every market committee, other than the ex-officio member shall
cease to hold his office if he absents himself from three consecutive meetings of the
market committee.
 9

(3) When the seat of any member becomes vacant before the expiry of his term
of office, the vacancy shall be filled up ---

(i) in case he was an elected member, by a person co-opted by

the market committee from among the members of the
electorate by which the member was elected.
(ii) in any other case, by a person appointed by the
Government:

Provided that no casual vacancy shall be filled up within three months before
the expiry of the term of office of the elected members.

(4) The member co-opted or appointed to fill a vacancy under sub-section (3)
shall hold office only for so long as the member in whose place he is co-opted or
appointed would have been entitled to hold office if the vacancy had not occurred.

(5) For the purposes of sub-section (2), no meeting of the market committee
from which a member absents himself shall be counted against him it due notice of that
meeting was not given to him.

(6) Where a person ceases to be member under sub-section (2), the Chairman
shall, at once intimate the fact in writing to such person and report the same to the
market committee at its next meeting. If such person applies for restoration of his
membership to the market committee on or before the date of the next meeting, or
within fifteen days of the receipt by him of such intimation, the market committee may,
at the meeting next after the receipt of such application, restore him to his officer of
member:

Provided that a member shall not be so restored more than twice during his
term of office.

(7) Any member of a market committee may, at any time, be removed from
office by the Government for any of the reasons prescribed.

(8) Vacancies caused by the expiry of the term of office of elected members of
any market committee may be filled at elections which may be fixed by the Director, to
take place on such days not earlier than two months before the date on which the
vacancies arise as he thinks fit.

(9) Every market committee shall elect one of its members, who is a producer of
any notified agricultural produce in the notified area, to be its Chairman and any other
member to be its Vice-Chairman.
 10

Special provision where there is delay in the re-constitution

of new market committee.

12. Where the term of office of the members of a market committee has expired and
the Director is of the opinion that it is not practicable to reconstitute the market
committee forthwith, he may, by notification, extend the term of office of the members
of the market committee for a further period or periods not exceeding two years in the
aggregate or until the market committee is reconstituted, whichever is earlier.

Sub-committee, Special Committee and delegation of powers.

13. The market committee may appoint one or more of its members to be a sub-
committee or to be a special committee for the conduct of any work or to report on any
matter and may delegate to any one or more of its members such of its powers or duties
as it may think fit.
Meetings.
14. (1) The market committee may, at any time, call a general meeting of the
market committee and shall call such a meeting within one month after receipt of a
requisition in writing from the Director or from such number of members or proportion
of the total number of members as may be specified in the bye-laws of the market
committee.

(2) If a general meeting is not called in accordance with such requisition, the
Director shall have the power to call a general meeting of the market committee.

Appointment and salaries of officers and servants of market committee.

15. (1) Subject to such rules as may be prescribed, a market committee may appoint
such officers or employ such servants as may be necessary for the management of the
market and may pay such officers and servants such salaries as it may think fit and
shall have power to control and punish them.

(2) The market committee may also provide for the payment to its officers and
servants of such leave, allowances, pensions, gratuities or compassionate allowances, as
it deems proper and may contribute to any provident fund which may be established
for the benefit of such officers and servants.

(3) The market committee shall, in the case of any officer or servant of the
Government whom it employs, make such contribution towards his pension and leave
allowances, as may be required by the conditions of his service under the Government
to be paid by him or on his behalf.

(4) The Chairman, Vice-Chairman and every officer or servant of a market

committee shall be deemed to be a public servant within the meaning of section 21 of
the Indian Penal Code (Central Act 45 of 1860).
 11

Supersession of market committee.

16. (1) If, in the opinion of the Government, a market committee is not competent
to perform or persistently makes default in performing, the duties imposed on it by or
under this Act, or abuses its powers, the Government may, by notification, supersede
such market committee for a period not exceeding one year in the first instance and
may, by order, extend the period of supersession for a period not exceeding one year at
a time, so however, that the total period of supersession in the case of any market
committee shall not exceed four years:

Provided that, before issuing a notification under this sub-section, the

Government –

(i) shall give a reasonable opportunity to the market

committee of showing cause against the proposed
action and shall consider the explanations and
objections, if any, of the market committee; and
(ii) may, at its discretion, consult such authority or officer
as it may deem fit.

(2) Upon the publication of a notification under sub-section (1) superseding a

market committee, the following consequences shall ensue, namely: -

(a) all the members, as well as the Chairman and Vice-Chairman

of the market committee, shall, as from the date of such
publication, be deemed to have vacated their offices; and
(b) all the assets vested in the market committee shall, subject to
all its liabilities vest in the Government.

(3) When a market committee has been superseded:-

(a) the Government may, at its discretion, by order appoint a

suitable person or persons to carry out the functions of the
market committee and transfer to such person or persons
the assets and liabilities of the superseded market
committee as on the date of such transfer; and
(b) at any time before the expiry of the period of supersession,
the Government may establish a new market committee
under section 4.
 12

CHAPTER – III

FINANCE, CONTRACT AND PROPERTY.

Execution of contracts.

17. (1) No contract shall be executed on behalf of the market committee except with
the sanction of the market committee by a resolution made in this behalf and all
contracts shall be in writing and shall be signed on behalf of the market committee by
the Chairman and two other members of the Market Committee, or if the Market
Committee has been superseded, by the person or persons appointed under sub-section
(3) of section 16.
(2) No contract other than a contract executed as provided in sub-section (1)
shall be binding on a market committee.

Levy of market fee by market committee.

18. (1) The market committee shall levy and collect market fees on any notified
agricultural produce brought or sold in the notified market area at such rate, as may be
specified in a notification issued by the Government in this behalf, which shall not be
more than one rupee for every hundred rupees of the aggregate amount for which the
notified agricultural produce is bought or sold whether for cash or for deferred
payment or other valuable consideration.

Explanation. – For the purposes of this sub-section, all notified agricultural

produce taken out or proposed to be taken out of a notified market area, shall, unless
the contrary is proved, be presumed to be bought or sold within such area.

(2) The market fee referred to in sub-section (1) shall be paid by the purchaser
of the notified agricultural produce concerned:
Provided that where the purchaser of a notified agricultural produce cannot be
identified, the market fee shall be paid by the seller.

(3) (a) At any time, when so required by any officer or servant of a market
committee, who is empowered by the Government in this behalf, the driver or any
other person in charge of any vehicle, boat or other conveyance, which is taken or
proposed to be taken out of a notified market area, shall stop the vehicle, boat or other
conveyance as the case may be, and keep it stationary as long as may reasonably be
necessary and allow the officer or servant empowered as aforesaid to examine the
contents in the vehicle, boat or other conveyance.

(b) Such officer or servant who has been so empowered by the Government
under clause (a) may also inspect all records relating to the notified agricultural
produce carried, which are in the possession of such driver or other person in charge,
 13

who shall, if so required, give his name and address and the name and address of the
owner of the vehicle, boat or other conveyance.

(c) The officer or servant of the market committee empowered as aforesaid

shall have power to seize any notified agricultural produce taken or proposed to be
taken, out of a notified market area in any vehicle, boat or other conveyance, if such
officer or servant has reason to believe that any market fee or other amount due under
this Act in respect of such notified agricultural produce has not been paid and such
seizure shall be forthwith reported by the officer or servant aforesaid to a Magistrate
having jurisdiction to try an offence under this Act and the provisions of sections 523*,
524* and 525* of the Code of Criminal Procedure, 1898* (Central Act 5 of 1898), shall, so
far as may be, apply, in relation to the notified agricultural produce seized as aforesaid,
as they apply in relation to property seized by a police officer:

Provided that no such notified agricultural produce shall be seized from any
person, if he satisfactorily accounts for his possession and for the payment of the market
fees or other amount due under the Act and relating to the said produce.

Levy of subscriptions for market reports, etc.

19. The market committee may, subject to such rules as may be prescribed, levy a
subscription for collecting and disseminating among the subscribers, information as to
any matter relating to statistics or marketing in respect of the notified agricultural
produce.
Market Committee Fund.

20. (1) All moneys received by a market committee shall be paid into a fund called
the "Market Committee Fund" (hereinafter referred to as the Fund) and all expenditure
incurred by the market committee under or for the purposes of this Act shall be
defrayed out of the said Fund; and any surplus remaining after such expenditure has
been met, shall be invested in such manner as may be prescribed.

(2) (a) Every market committee shall, out of its Fund, pay to the Government
the cost of any special or additional staff, employed by the Government in consultation
with the market committee for giving effect to the provisions of this Act in the notified
area to which the market committee was established.

(b) The Government shall determine the cost of such special or additional
staff and shall, where the staff is employed for the purposes of more than one market
committee, apportion such cost among the market committees concerned in such
manner as it thinks fit.

* Now, Sections 457, 458 and 459 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).
 14

(3) The decision of the Government determining the amount payable by any
market committee shall be final.

Purposes for which the Fund may be expended.

21. Subject to the provisions of section 20, the Fund shall be expended for the
following purposes only, namely: -

(i) the acquisition of site or sites for the market;

(ii) the maintenance and improvement of the market;
(iii) the construction and repair of buildings which are necessary for the
purposes of such market and for the health, convemence and safety of
the persons using it;
(iv) the provision and maintenance of standard weight and measures;
(v) the pay, pension, leave allowances, gratuities, compassionate
allowances and contributions towards leave allowances, pension or
provident fund of the officers and servants employed by the market
committee:
(vi) the payment of interest on loans that may be raised for purposes of the
market and the provision of a sinking fund in respect of such loans;
(vii) the collection and dissemination of information regarding all matters
relating to statistics and marketing in respect of the notified
agricultural produce;
(viii) schemes for the extension or cultural improvement of the notified
agricultural produce within the notified area, including the grant,
subject to the approval of the Government, of financial aid to schemes
for such extension or improvement within such area, undertaken by
other bodies or individuals;
(ix) schemes for grading of agricultural produce;
(x) the expenses in regard to elections to the market committee and
matters incidental thereto;
(xi) the measures to be taken for the preservation of any agricultural
produce;
(xii) such other purposes as may be authorised by the Director or the
Government in this behalf by general or special order.

No trade allowance permissible except as prescribed by rules or bye-laws.

22. No trade allowance other than an allowance prescribed by the rules or bye-laws
made under this Act shall be made or received in a notified area by any person in any
transaction in respect of the notified agricultural produce concerned and no civil court
shall, in any suit or proceeding arising out of any such transaction, have regard to any
trade allowance not so prescribed.
 15

Explanation: - Every deduction, other than a deduction on account of deviation from

sample, when the purchase is made by sample, or of deviation from standard when the
purchase is made by reference to a known standard, or on account of difference
between the actual weight of the sacking and the standard weight or on account of the
admixture of foreign matter, shall be regarded as a trade allowance for the purposes of
this Act.
Power to borrow.
23. (1) Every market committee may, with the previous sanction of the
Government, raise the money required for carrying out the purposes for which it is
established on the security of any property vested in, or belonging to, the market
committee and of any market fee leviable by the market committee under this Act. The
market committee may, for the purpose of meeting the initial expenditure on lands,
buildings and equipment required for establishing the market obtain a loan from the
Government.
(2) The conditions under which such money or loan shall be raised and the time
within which the same shall be repayable shall be subject to the previous sanction of the
Government.

Power to write off irrecoverable fee, market fee, etc.

24. A market committee may write off any fee, market fee or other amount
whatsoever due to it. Whether under a contract or otherwise, or any sum payable in
connection therewith, if in its opinion, such fee, market fee or other amount is
irrecoverable:-

Provided that the market committee shall, before writing off any such fee, market
fee or amount obtain the sanction of –

(i) the Director, if the fee, market fee or amount exceeds one
hundred rupees, but does not exceed such amount as may be
prescribed; and
(ii) the Government, if such amount exceeds the amount so
prescribed.

Recovery of sums due to Government from market committee.

25. Subject to such rules as may be prescribed the Government may recover all sums
due from the market committee in the same manner as arrears of land revenue.
 16

Liability of Chairman, Vice-Chairman and members for loss,

waste or misapplication of property.

26. (1) The Chairman, Vice-Chairman and every member of a market committee
shall be liable for the loss, waste or misapplication of any money or other property
owned by, or vested in, the market committee, if such loss, waste or misapplication is a
direct consequence of his neglect or misconduct; and a suit for compensation may be
instituted against him in any court of competent jurisdiction by the market committee
with the previous sanction of the Director.

(2) Every such suit shall be commenced with in three years after the date on
which the cause of action arose.

CHAPTER – IV

OFFENCES AND PENALTIES.

Penalties.
27. Any person who –
(a) fraudulently evades the payment of any fee, market fees or other
amount due from him under this Act or the rules or bye-laws
made thereunder, or
(b) wilfully acts in contravention of any of the provisions of this Act,

shall be punishable with fine which may extend to five hundred rupees, and in the case
of a continuing evasion or contravention, with a further fine which may extend to one
hundred rupees for every day during which the evasion or contravention is continued
after conviction therefor.
Trial of offences.
28. (1) No offence made punishable by this Act or any rule or bye-law made
thereunder shall be tried by any court inferior to that of a Magistrate of the first class.
(2) Any prosecution under this Act may be instituted by any person duly
authorised in writing by the market committee in this behalf.

Liability of accused to pay fee, market fee or other amount.

29. Every person who is prosecuted for an offence under section 27 shall be liable on
proof to the satisfaction of the Magistrate that he wilfully omitted to pay the fee, market
fee or other amount due from him under this Act or the rules or bye-laws made
thereunder, to pay to the market committee the amount which may be due from him on
account of such fee, market fee or other amount.
 17

Composition of offences.

30. The market committee may accept from any person who has committed or is
reasonably suspected of having committed an offence against this Act or the rules or
bye-laws made thereunder, by way of composition of such offence ---
(a) where the offence consists of the failure to pay or the evasion of
any fee, market fee or other amount recoverable under this Act
or the rules or bye-laws made thereunder, in addition to the fee
or other amount so recoverable, a sum of money not exceeding
two hundred rupees or double the amount of the fee, market
fee or other amount whichever is greater; and
(b) in other cases, a sum of money not exceeding two hundred
rupees.

Power of Magistrate to recover summarily fee, market fee or other amount.

31. Whenever any person is convicted of an offence under this Act or the rules or
bye-laws made thereunder, the Magistrate shall, in addition to any fine which may be
imposed, recover summarily and pay over to the market committee, the amount of fee,
market fee or other amount due from him under this Act or bye-laws made thereunder
and may in his discretion, also recover summarily and pay over to the market
committee such amount if any, as he may fix as the cost of the prosecution.

CHAPTER – V
MISCELLANEOUS.

Power of Director to decide certain questions.

32. If any question arises whether any person is a producer or not for the purposes
of this Act, the Director shall decide the question after following such procedure as may
be prescribed. The decision of the Director, shall, subject to the provisions of section 33,
be final.
Power of Government to call for records and pass orders.
33. (1) The Government may of its own motion, or on application made to it, call
for and examine the record of any market committee or of the Director in respect of any
proceeding to satisfy itself as to the regularity of such proceeding or the correctness,
legality or propriety of any decision or order passed therein and, if in any case, it
appears to the Government that any such decision or order should be modified,
annulled, reversed or remitted for reconsideration, it may pass orders accordingly:

Provided that, before passing any order under this sub-section, the
Government –
 18

(i) shall, if such order is likely to be prejudicial to any

person, give such person a reasonable opportunity of
making his representations; and
(ii) may, at its discretion, consult such authority or officer as
it may deem fit.
(2) The Government may stay the execution of any such decision or order
pending the exercise of its powers under sub-section (1) in respect thereof.

Registration of document executed on behalf of a market committee.

34. (1) Notwithstanding anything contained in the Registration Act, 1908 (16 of
1908), it shall not be necessary for the Chairman or any member or officer or servant of
a market committee or the person referred to in sub-section (1) of section 17 to appear in
person or by agent at any registration office in any proceeding connected with the
registration of any instrument executed by him in his official capacity or to sign as
provided in section 58 of that Act.
(2) Where any instrument is so executed, the registering officer to whom such
instrument is presented for registration may, if he thinks fit, refer to such Chairman,
member, officer, servant or person for information respecting the same and shall, on
being satisfied of the execution thereof, register the instrument.

Saving.
35. Nothing in this Act shall apply to any place set up, established or continued by
or on behalf of the Central Government or any State Government for the purchase, sale,
storage, weighment, pressing or processing of any notified agricultural produce or to
the purchase or sale of any notified agricultural produce by or on behalf of the Central
Government or any State Government.

Act to over ride other laws.

36. Nothing in any law providing for the establishment, maintenance or regulation
of market or the levy of fees therein shall apply to any market established under this
Act or affect in any way the powers of a market committee, in respect of such market.

Exemption.
37. The Government may, by notification, and for the reasons to be specified therein,
either permanently or for any specified period, exempt any market committee, any
person or class of person from all or any of the provisions of this Act, subject to such
conditions as the Government may deem fit to impose.

Power to remove difficulties.

38. (1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by Order in the Official Gazette, do anything not inconsistent with
such provisions which appears to it to be necessary or expedient for the purpose of
removing the difficulty.
 19

(2) Every order made under this section shall be laid before the Legislative
Assembly, Puducherry, as soon as may be, after it is made.
Power to make rules.
39. (1) The Government may, by notification, make either generally or specially for
any notified area or areas, rules for carrying out all or any of the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing

power, such rules may provide for or regulate –
(i) the issue by a market committee of licences to brokers, weighmen,
measures and surveyors, the form in which and the conditions
subject to which, such licences shall be issued or renewed, and the
fees to be charged therefor;
(ii) the provision of accommodation for storing any notified
agricultural produce brought into the market;
(iii) the kind and description of the scales, weights and measures,
which alone may be used in transactions in the notified agricultural
produce concerned in a notified area:
(iv) the periodical inspection, verification and correction of all scales,
weights and measures in use in a notified area and the seizure of
scales, weights and measures found to be false;
(v) the annual fees that may be levied by the market committee in
respect of licences granted under section 6 and the recovery of such
fees;
(vi) the election, appointment, co-option and removal of members of a
market committee, the preparation and revision of lists of electors;
and the payment of all expenditure in connection with or incidental
to elections;
(vii) the election of the Chairman and Vice-Chairman of a market
committee and their terms of office;
(viii) the filling of casual vacancies in the office of the Chairman,
Vice-Chairman or member of a market committee;
(ix) the provision of facilities for the settlement of any dispute between
a buyer and seller of the notified agricultural produce or their
agents including disputes regarding the quality or weight of the
article, the allowances for wrappings, dirt or impurities or
deductions from any cause;
(x) the prohibition of brokers from acting in any transaction on behalf
of both the buyer and seller of any notified agricultural produce;
(xi) the manner of collection of market fee;
(xii) the maximum rates of subscriptions which may be levied by the
market committee under section 19 and the recovery of such
subscriptions;
 20

(xiii) the preparation of plans and estimates for works proposed to be

constructed partly or wholly at the expense of the market
committee, and the grant of sanction to such plans and estimates;
(xiv) the procedure to be followed by a market committee in respect of
financial matters generally, including the manner in which, and the
restrictions and conditions subject to which, expenditure may be
incurred by it;
(xv) the form in which the accounts of a market committee shall be kept,
the audit and publication of such accounts, and the charges, if any,
to be made for such audit;
(xvi) the powers of auditors and the Director to disallow and surcharge
items and the recovery of sums so disallowed and surcharged;
(xvii) the institution of provident funds;
(xviii) the preparation and submission for sanction of an annual budget
and the reports and returns to be furnished by a market committee;
(xix) the investment and disposal of the surplus funds of a market
committee;
(xx) the trade allowance which may be made or received by any person
in any transaction in the notified agricultural produce in a notified
area;
(xxi) the prevention of adulteration of notified agricultural produce;
(xxii) the maintenance of standards of notified agricultural produce;
(xxiii) the provision for affording facilities for settlement of debts charged
on notified agricultural produce;
(xxiv) any other matter which has to be or may be prescribed.
(3) Any rule made under this section may provide that any contravention
thereof or of any of the conditions of any licence issued or renewed thereunder shall be
punishable with fine which may extend to two hundred rupees.
(4) Every rule made under this section shall, as soon as may be after it is made,
be laid before the Legislative Assembly, Puducherry, while it is in session for a total
period of fourteen days which may be comprised in one session or in two successive
sessions, and if before the expiry of the session in which it is so laid, or the session
immediately following, the Legislative Assembly, makes any modification in the rule or
decides that the rule should not be made or issued, the rule shall thereafter have effect
only in such modified form or be of no effect, as the case may be:
Provided that any such modification or annulment shall be without prejudice
to the validity or anything previously done under that rule.
Power to make bye-laws.
40. (1) Subject to any rules made by the Government under section 39 and with the
previous sanction of the Director, a market committee may, in respect of the notified
area for which it was established, make bye-laws for the regulation of the business and
the conditions of trading therein:
 21

Provided that where a market committee fails to make bye-laws under this
sub-section within one month from the date of its establishment, the Director may make
such bye-laws as he thinks fit and the bye-laws so made shall be deemed to be bye-laws
made by the market committee and may be amended or varied, by the Director or, with
his previous sanction, by the market committee.
(2) Any bye-law made under this section may provide that any contravention
thereof shall be punishable with fine which may extend to fifty rupees.
______

NOTES ON CLAUSES
Clause 2 seeks to insert definitions of certain new expressions in the Act. The
proposed definitions are self-explanatory.
Clause 3 enables the Government to publish a draft notification regulating the
purchase and sale of such agricultural produce in such area as may be specified in the
notification and also to publish the final notification, after considering the objections
and suggestions, declaring the area specified in the draft notification or any portion
thereof to be a notified area for the purposes of the Act.
Clause 4 seeks to empower the Government to establish by notification, a Market
Committee for every notified area for enforcing the provisions of the Act.
Clause 5 seeks to empower every Market Committee to establish in the notified
area such number of markets as may be directed by the Government by a general or
special order.
Clause 6 seeks to provide for trading in agricultural produce in a notified area
after obtaining a licence granted by the Market committee. The licence granted shall be
valid for a financial year and shall be renewed from year to year. This clause also
empowers the Market Committee to cancel or suspend any licence so granted, after
such inquiry as it deems fit, and in the case of a refusal to grant a licence or of
suspension or cancellation of a licence, the applicant or the licensee shall be entitled to
appeal to such officer as may be prescribed under the Act.
Clause 7 seeks to lay down that all agricultural produce brought to the notified
market areas by a producer shall be sold only in the market.
Clause 8: The Market Committee established shall be a body corporate having
perpetual succession and a common seal with power to acquire, hold and dispose of
property and may, by its corporate name, sue and be sued.
Clause 9 seeks to provide for the constitution of a Market Committee by election.
Clause 10: The Project Agricultural Officer having jurisdiction over the notified
area shall be the ex-officio member of the Market Committee established for such area.
Clause 11 deals with the term of office, casual vacancy etc. of the elected
members of the Market Committee.
Clause 12 seeks to empower the Director, where there is delay in the
reconstitution of a new Market Committee due to the administrative difficulties, to
extend the terms of officer of the members of the Market Committee for a further period
 22

or periods not exceeding two years in the aggregate or until the Market Committee is
reconstituted, whichever is earlier.
Clause 13 seeks to empower the Market Committee to appoint one or more of its
members to be sub-committee or to be a special committee for the conduct of any work
or to report on any matter and to delegate its powers to such sub-committee or special
committee, as it may think fit.
Clause14 seeks to empower the Market Committee to call a general meeting of a
Market Committee and also to call a meeting on requisition from the Director of such
number of members or proportion of the total number of members as may be specified
in the bye-laws of the Market Committee. If no meeting is called for in accordance with
such requisition, the Director himself shall have power to call a general meeting of the
Market Committee.
Clause15 deals with the appointment and salaries of officers and servants of the
Market Committee. The Chairman, Vice-Chairman and every officer or servant of a
Market Committee shall be deemed to be a public servant within the meaning of section
21 of the Indian Penal Code.
Clause16 Where in the opinion of the Government, the Market Committee is not
competent to perform or persistently makes default in performing the duties imposed
on it by the Act or abuses its powers, the Government may, after giving a reasonable
opportunity of showing cause against the proposal and after considering the
explanations and objections, supersede the Market Committee for a period not
exceeding one year in the first instance. This clause further empowers the Government
to extend the period by one more year at a time and imposes a condition that the total
period of supersession should not exceed four years.
Clause 17 deals with the execution of contracts by the Market Committee.
Clause 18 seeks to empower the Market Committee to levy a market fee on any
notified agricultural produce bought or sold in the notified market area at a rate not
exceeding one rupee for every hundred rupees.
Clause 19 empowers the Market Committee, subject to such rules as may be
prescribed, to levy a subscription for collecting and disseminating among the
subscribers information as to any matter relating to statistics or marketing in respect of
the notified agricultural produce.
Clause 20 deals with the Market Committee fund.
Clause 21 deals with the purposes for which the fund may be expended.
Clause 22 provides that no trade allowance is permissible except as may be
prescribed by rules or bye-laws.
Clause 23 seeks to empower the Market Committee, with the previous sanction
of the Government to raise money required for carrying out the purposes for which it is
established on the security of any properly vested in, or belonging to, the Market
Committee.
Clause 24 seeks to empower the Market Committee to write off any irrecoverable
fee, etc.
 23

Clause 25 deals with the recovery of sums due to Government from a market
Committee as arrears of land revenue.
Clause 26 deals with the liability of the Chairman, Vice-Chairman and members
of the Market Committee for any loss, waste or misapplication of property.
Clause 27 provides penalties for certain offences committed by any person under
the Act.
Clause 28 deals with the trail of offences.
Clause 29 deals with the liability of accused to pay fee, or other amount to the
Market Committee.
Clause 30 provides for the composition of offences.
Clause 31 deals with the power of Magistrate to recover summarily fee, or other
amount from a person who is convicted of an offence under the Act or the rules or
bye-laws.
Clause 32 empowers the Director to decide certain questions under the Act.
Clause 33 deals with the power of revision by Government and to call for records
by the Government from any Market Committee or the Director in respect of any
proceeding to satisfy itself as to the regularity or the correctness legality or propriety of
any decision or order passed by any Market Committee or the Director.
Clause 34 deals with the registration of document executed on behalf of a Market
Committee.
Clause 35 is a saving clause.
Clause 36 provides that nothing in any law providing for establishment,
maintenance or regulation of a market or the levy of fees shall apply to any market
established under the Act or affect in any way the powers of a Market Committee
in respect of such market.
Clause37 seeks to empower the Government, by notification for reasons to be
specified therein either permanently or for any specified period, to exempt any Market
Committee, or any person or class of persons from all or any of the provisions of the
Act, subject to such conditions as the Government may deem fit to impose.
Clause 38 empowers the Government to make orders to remove any difficulties
in the application of the Act.
Clause 39 provides for the rule making power of the Government for purposes of
the Act.
Clause 40 seeks to empower the Market Committee, subject to any rules made by
the Government and with the previsions sanction of the Director, to make bye-laws for
the regulation of its business.
STATEMENT OF OBJECTS AND REASONS FOR ACT NO.3 OF 1974
At present, there is no enactment in this Union territory for the better regulation
of buying and selling of agricultural produce and establishment and proper
administration of markets for agricultural produce. Therefore, it has been decided to
enact a law with suitable modification on the lines of similar Acts in force in the
neighbouring States. The present Bill seeks to achieve the above objects.
______
 24

THE PUDUCHERRY NON-MOTORISED VEHICLES TAX ABOLITION ACT, 1973

(No. 4 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement.

2. Definition.
3. Repeal and savings.
4. Protection of action taken in good faith.

_____
 25

THE PUDUCHERRY NON-MOTORISED VEHICLES TAX ABOLITION ACT, 1973

(No. 4 of 1974)
(8-4-1974)
AN ACT

to provide for the abolition of taxes on non-motorised vehicles in the Union

territory of Puducherry and matters connected therewith.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-fourth

Year of the Republic of India as follows:-

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Non-motorised Vehicles Tax
Abolition Act, 1973.
(2) It extends to the whole of the Union territory of Puducherry.
+(3) It shall come into force on such date as the Government may, by

notification in the Official Gazette, appoint.

Definition

2. In this Act, "Government" means the Administrator appointed by the President

under article 239 of the Constitution.

Repeal and savings

3. (1) On and from the commencement of this Act, the Deliberations dated 26th
December, 1911, 26th November, 1935 and 15th December, 1941, respectively enforced by
the arretes dated 1st December, 1912, 19th June, 1936 and 24th December, 1941 shall stand
repealed.
(2) Notwithstanding anything contained in sub-section (1), every proceeding or
transaction pending under the provisions of the Deliberations and Arretes referred to
therein immediately before the commencement of this Act shall, after such
commencement, stand transferred to the Sub/Assistant/Deputy Collector (Revenue) of
the respective regions, as the case may be, and such proceeding or transaction shall be
disposed of in accordance with the provisions of the said Deliberations and Arretes as if
the said Deliberations and Arretes had continued in force and this Act had not been
passed.

+ This Act came into force w.e.f 01-06-1975 vide Notification published in EG No. 47 dt. 17.05.1975.
 26

(3) The provisions of sub-section (2) shall be without prejudice to the general
application of section 6 of the General Clauses Act, 1897, as applicable under section 2
of the Puducherry General Clauses Act, 1965, to the interpretation of Acts of the
Legislature of the Union territory of Puducherry and the said section 6 shall apply to
the repeal of the Deliberations and the Arretes referred to in sub-section (1) as if the said
Deliberations and Arretes were enactments.

Protection of action taken in good faith

4. No suit or other legal proceedings shall lie against the Government or any person
authorised by the Government for anything which is in good faith done or intended to
be done in pursuance of this Act.
______

STATEMENT OF OBJECTS AND REASONS FOR NO.4 OF 1974

There has been a long pending demand from the public do away with the levy of
taxes on non-motorised vehicle. So, the question of abolition of these taxes has been
under the consideration of the Government for some time past. The annual revenue
derived by way of these taxes is about 87,000. This amount is very meager and not
worth the trouble taken for its realisation. Besides, the taxes are levied mostly from the
poor people and the abolition thereof will be a great relief to them. So, it has been
decided to abolish these taxes.

The Bill seeks to achieve the above object.

_______
 27

THE PUDUCHERRY (PUBLIC) HEALTH ACT, 1973

(No. 5 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER – I
PRELIMINARY

1. Short title, extent and commencement

2. Definitions
CHAPTER – II
HEALTH AUTHORITIES AND THEIR FUNCTIONS
3. Board of Health
4. Functions of the Board
5. Meetings of the Board
6. Committees
7. Powers of the Government
8. Powers of the Director
9. Public health establishment of local authorities
10. Health Officers
11. Appointment of persons to carry out the provisions of this Act
12. Health Officer’s control over public health staff

CHAPTER – III
PRIVATE MEDICAL AND HEALTH INSTITUTIONS
13. Definitions
14. Registration
15. Refusal to register
16. Cancellation of registration
17. Appeal
18. Entry and inspection
19. Government’s control
CHAPTER – IV
WATER SUPPLY
20. Local authority to provide water supply
21. Power of Government to direct local authority to execute water works
22. Power of Government to divert water from water main belonging to a local
authority
23. Water supply by pipe system
24. Supply for non-domestic purpose
 28

25. Contracts for bulk supply

26. Loans
27. Services of Chief Public Health Engineer
28. Use of private lands
29. Other sources of water supply
30. Private tube-wells
31. Survey of water sources
32. Joint Water Board
33. Pollution of water
34. Rules for protection, examination and maintenance of water supply

CHAPTER – V
PREVENTION AND CONTROL OF COMMUNICABLE DISEASES
35. Communicable or infectious diseases in general
36. Duty of the local authority
37. Jurisdiction over boats, vessels, vans, tents, etc.
38. Notified communicable diseases
39. Obligation to notify
40. Prohibition of the use of water from suspected source
41. Control of patients
42. Exposure of persons and articles
43. Infected persons not to engage in certain trades and occupations
44. Prevention of communicable disease transmissible from animals
45. Powers of Health Officers
46. Destruction of hut or shed to prevent spread of infection
47. Infected clothes not to be sent to laundry
48. Use of public conveyance
49. Letting or sub-letting a building occupied by an infected person
50. Prohibition of the exposure of other persons to infection
51. Forbidding work in infected premises
52. Prohibition of use of public library by infected person
53. Disposal of bodies of persons dying while suffering from communicable disease
54. Compulsory immunisation
55. Restriction on movement
56. Closure of certain places
57. Power of Magistrate to prohibit assembly of persons
58. Power of Government to confer special powers on officers to control notified
diseases
59. Destruction of rats, mice, etc.
60. Special provision for small-pox
61. Venereal diseases
62. Rules for prevention, treatment and control of disease
63. Maternity and child welfare
 29

CHAPTER – VI
COLLECTION AND DISPOSAL OF COMMUNITY WASTES
64. Local Authority to provide for collection and disposal of community wastes
65. Definitions
66. Joint Water and Drainage Board
67. Improvement or extension of works
68. Execution of the scheme and maintenance
69. Acquisition and use of private lands and buildings
70. The control and administration of public drains and sewerage disposal
71. Discharge of sewerage or waste water
72. Restriction on discharge of trade affluent and waste
73. Permission to construct septic tank and sanitary latrines
74. Common privies
75. Nuisance from offensive matters
76. Responsibility of the local authority to provide public latrines, urinals and
dust bins
77. Cleaning of roads and roadside drains
78. Disposal of carcasses
79. The local authority to provide establishment, equipment and control and
supervision
80. Duties of local authorities
81. Levy of sanitation tax
82. Combination and control
CHAPTER – VII
SANITATION
83. Survey of housing and sanitation
84. Notification of residential areas
85. Planning of residential area
86. Building regulations
87. Prohibition of the use of building
88. Slum area
89. Building Regulations Advisory Committee

CHAPTER – VIII
FOOD SANITATION
90. Provisions supplementary to other enactments
91. Requirement as to licences
92. Prohibition of sale of unsound food
93. Inspecting Officers
94. Seizure and destruction of decomposed and unwholesome food stuff
95. Flesh of dead animal not to be consumed
96. Restrictions on sale of meat from outside
97. Rules
 30

CHAPTER – IX
NUISANCES AND OFFENSIVE TRADES
98. What are nuisances
99. Removal of nuisances
100. Information regarding nuisance
101. Power to Health Officer to abate nuisance
102. Restrictions on the use of buildings
103. Notification of offensive trade
[Link] of offensive trade
105. Notification of areas for offensive trades, and licensing, for such purposes
106. Local authority to provide sufficient land for such purposes
107. Removal of offensive trades to reserved areas
108. Provision for drinking water etc.
109. Sanitary conveniences
110. Disposal of trade wastes and levy of charges
111. Powers of entry and inspection
112. Prohibition of the deposit of rubbish etc., in the street etc.
113. Rules necessary for implementation

CHAPTER – X
FAIRS, FESTIVALS AND PLACES OF PILGRIMAGE
114. Notification of areas
115. Notice of fair or festival and particulars
116. Provision of sanitary arrangements and medical relief arrangements
117. Power of supervision of arrangements
118. Power of entry and seizure of food
119. Power of acquisition of building for an emergency
120. Power of Director of Health Services
121. Power of Government
CHAPTER – XI
HEALTH RESORTS, HOLIDAY CAMPS, SETTLEMENTS AND LABOUR CAMPS
122. Notification
123. Licence
124. Control of such notified places

CHAPTER – XII
MISCELLANEOUS INSTITUTIONS
125. Registration and licensing
126. Power of entry
127. Conditions for grant of licence etc.
128. Local authority to provide place for recreation, sports field, pasture land, etc.
129. Acquisition of land and disposal
 31

130. Competent authority

131. Duties of competent authorities
132. Insecticidal spraying
133. Duties and responsibilities of owners and occupiers
134. Power of local authority/Government
135. Information regarding any insect-borne disease in epidemic form

CHAPTER – XIII
BURIAL AND BURNING GROUNDS
136. Local authorities to provide burial and burning grounds
137. Private burning and burial ground licensing of
138. Certification of death
139. Registration of deaths
140. Prohibition of use of other places
141. Disposal of unclaimed bodies
142. Government to control by rules

CHAPTER – XIV
MISCELLANEOUS
143. Power to make rules
144. General power to make bye-laws
145. Provisions with respect to bye-laws
146. Bye-laws to be available for inspection
147. Service of notices
148. Publication of notices and orders
149. Power of entry and inspection
150. Power to give direction
151. Delegation
152. Employees of local authorities to be public servants
153. Protection of action taken under Act
154. Effect of Act
155. Removal of difficulties
156. Repeal
157. Penalties

______
 32

THE PUDUCHERRY (PUBLIC) HEALTH ACT, 1973

(No. 5 of 1974)
(16-04-1974)
AN ACT

to make provision for the advancement and administration of health in the

territory.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-fourth

Year of the Republic of India as follows: -

CHAPTER – I

PRELIMINARY

Short title, extent and commencement

1. (1) This Act may be called the Puducherry (Public) Health Act, 1973.
(2) It extends to the whole of the Union territory of Puducherry.
*(3) It shall come into force on such date as the Government may, by
notification in the Official Gazette, appoint; provided that different dates may be
appointed for different areas and for different provisions of this Act, and any reference
to the commencement of the Act in relation to any such provision shall be construed as
a reference to the coming into force of that provision.

Definitions

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

(1) "building" includes --

(i) a house, out-house, stable, latrine, godown, shed, hut,
wall (other than a boundary wall not exceeding two
metres in height) and any other structure whether of
masonry, bricks, wood, mud, metal or any other material
whatsoever;
(ii) a structure on wheels or simply raised on the ground
without foundations;

* Chapters I, II, V and XIV of this Act came into force w.e.f 12.11.1981 vide Notification – I published in EG No. 114
dt. 12.11.1981. Chapters III, IV, VI, VII, VIII,IX, X, XI, XII and XIII of this Act shall come into force in the whole of the
Union territory of Puducherry on and from the 1st May, 1984 vide Notification published in EG Pt. I No. 62
dt. 13.06.1984.
 33

(iii) a ship, vessel, boat (when outside the port limits of major
ports as defined under the Indian Ports Act, 1908), tent,
van and any other structure used for human habitation;
but does not include a temporary shed erected on
ceremonial or festive occasions.
(2) "cattle" includes elephants, camels, mules, asses, horses, cows, bulls,
bullocks, buffaloes, sheep, goats and pigs and their young ones.

(3) "Chief Public Health Engineer" means an Engineer appointed or designated

as such by the Government by a notification in the Official Gazette.

(4) "dairy" includes –

(i) any farm, cattle-shed, milk store, milk shop or other

place from which milk is sold or supplied for sale or in
which milk is kept for sale or manufactured into butter,
ghee, cheese, cream, curd, buttermilk or dried, sterilized
or condensed milk; and
(ii) in relation to a dairy-man who does not occupy any
premises for the sale of milk, any place in which he
keeps the vessels used by him for the storage or sale of
milk;

but does not include a shop or place in which milk is sold for consumption on the
premises only or a shop or a place from which milk is sold or supplied for sale in
hermetically closed and unopened receptacles in the same original condition in which it
was first received in such a shop or place.

(5) "Director" means the Director of Health Services;

(6) "drain" means a house-drain or a drain of any other description and

includes a sewer, tunnel, culvert, ditch, channel or any other device for carrying off
sullage, sewage, offensive matter, polluted water, rain water or sub-soil water;
(7) "dwelling house" means a building constructed, used or adapted to be used,
wholly or partly for human habitation or in connection therewith;

(8) "executive authority" means the executive officer or other functionary of a

local authority who is vested with the general executive powers by or under any law for
the time being in force relating to (the creation and administration of) local authorities;

(9) "factory" means any premises as defined in the Factories Act, 1948;
 34

(10) "food" means any article as defined in the Prevention of Food Adulteration
Act, 1954*;

(11) "functions" includes powers and duties;

(12) "Government" means the Administrator appointed by the President under

Article 239 of the Constitution;

(13) "guardian" includes any person who has or is presumed to have accepted
the care or custody of any child;

(14) "health officer" means administrative medical officer or any other officer
vested with the powers of a health officer under the Act, by the Government;

(15) "hut" means any building which is constructed principally of wood, mud,
leaves, grass, thatch or metallic sheets and includes any temporary structure of
whatever size or any small building of whatever material made which the local
authority may declare to be a hut for the purpose of this Act;

(16) "latrine" includes a privy, water-closet and urinal, whether public or

private, or whether open or flushout or any construction for purposes of urination or
defecation;

(17) "local area" means the area within the jurisdiction of a local authority;
(18) "local authority" means –
(a) a municipal council, or
(b) any other body (not being a Cantonment authority governed
by the Cantonments Act, 1924) constituted by law for the local
administration of a village, town or other local areas;

(19) "lodging house" means a hotel, a boarding house, a choultry, dharmasala

or religious place or rest house not maintained by the Government or a local authority,
an unlicensed emigration depot, or any place where casual visitors are received and
provided with sleeping accommodation, with or without food, on payment, but does
not include ---
(a) a students’ hostel under public or recognised authority, or
(b) retiring rooms or rest-houses provided by a railway administration
and normally used by passengers or railway servants or both;
(20) "Magistrate" does not include an honorary or village magistrate;
(21) "milk" includes cream, skimmed milk, separated milk and condensed,
sterilised, desiccated or toned or boiled milk;

* Now, the Food Safety and Standards Act, 2006 (Central Act 34 of 2006).
 35

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

(23) "nuisance" includes any act, omission, place or thing which causes or is
likely to cause injury, danger, annoyance of offence to the sense of sight, smell or
hearing or disturbance to rest or sleep or which is or may be dangerous to life or
injurious to the health of the public or the people in general who dwell or occupy
property in the vicinity or persons who may have occasion to use any public right;

(24) "occupier" includes –

(a) any person for the time being paying or liable to pay, to the
owner the rent or any portion of the rent of the land or
building in respect of which the word is used or for
damages on account of the occupation of such land,
building or part thereof;

(b) a rent free occupant;

(c) an owner living in or otherwise using his own land or

building;

(d) a person having the charge, management or control of a

building, or a part of a building or a house, premises or in
the case of a lodging house which is let out to lodgers either
on his own account or as the agent of another person, and in
the case of ship, vessel or boat, the master or other person in
charge thereof; and

(e) in the case of land, building or house not occupied by any

tenant or other person, the owner of the building or
premises;

(25) "offensive trade" means any trade in which the substances dealt with are or
are likely to become a nuisance as defined in clause (23);

(26) "owner" includes the person for the time being receiving or entitled to
receive, whether on his account or as agent, trustee, guardian, manager or receiver for
another person or estate or for any religious or charitable purposes the rent or profits of
the property in connection with which the word is used;

(27) "parent" means the father or mother of a child and includes foster and step
parents;
 36

(28) "premises" includes buildings and lands;

(29) "prescribed" means prescribed by rules under this Act;

(30) "private street" means any street, road, square, court, alley, lane, passage or
riding-path which is not a "public street" but does not include a pathway made by the
owner of premises on his own land to secure access to, or the convenient use of, such
premises;

(31) "public building" means a building used or adopted to be used ---

(a) as a place of public worship or as school, college or other

place of instruction (not being a dwelling house so used) or
as a hospital, work house, public theatre, public cinema,
public hall, public library or public lecture-room, public
concert- room, public exhibition room, or as a public place
of assembly;

(b) for any other public purpose; or

(c) as a hotel, eating house, lodging house, refuge or shelter;

(32) "public street" means any street, road, square, court, alley, lane, passage or
riding-path, whether a thoroughfare or not, over which the public have a right of way
and includes ---

(a) the roadway over any public bridge or causeway;

(b) the footway attached to any such street, public bridge or

causeway; and

(c) the drains attached to any such street, public bridge or

causeway and the land whether covered or not by any
pavement, verandah or other structure which lies on either
side of the roadway up to the boundaries of the adjacent
property whether that property is private property or
property belonging to the Government;

(33) "public health services" or "health services" means services for the
prevention and treatment of diseases and promotion of health and includes
environmental sanitation, immunisation and any other services provided under this Act
and the establishment and maintenance of any institution for the purpose of any such
services;
 37

(34) "urban local area" means the area within the jurisdiction of an urban local
authority;

(35) "Registered Medical Practitioner" means a medical practitioner registered

under the Indian Medical Council Act, 1956;

(36) "urban local authority" means a city corporation, a municipal council or

committee, or any other local authority notified by the Government as an urban local
authority for the purposes of this Act;

(37) "water course" includes any river, stream or channel whether natural or
artificial other than a drain;

(38) "Veneral disease" means syphilis, gonorrhoea, soft chancre (chancroid)

venereal granuloma (Gramloma inguinale) or lympho granuloma (lymphograumloma
venereum);

(39) "work place" means any premises including the precincts thereof (not
being a factory or a workshop) wherein is carried on any official business, industrial,
manufacturing or trade process at which not less than five persons are employed for
wages or any other remuneration;

(40) "workshop" means any premises including the precincts thereof (not being
a factory) wherein any article or part of an article is made, repaired, altered,
ornamented, finished or otherwise adapted for use or a commercial basis and not less
than five persons are employed for that purpose for wages or any other remuneration;

(41) "year" means financial year;

(42) "trade waste" includes industrial and factory wastes.

CHAPTER – II

HEALTH AUTHORITIES AND THEIR FUNCTIONS

Board of Health

3. (1) As soon as may be, after the commencement of this Act, the Government
shall, by notification in the Official Gazette, constitute a Board of Health for the Union
territory of Puducherry (hereinafter referred to as the Board) and the said Board shall
consist of the following members: -
 38

(a) the Minister of Health;

(b) the Minister of Local Self-Government;
(c) the Secretary to Government in-charge of the Health
Department;
(d) the Secretary to Government in-charge of the Local
Administration Department;
(e) the Director of Health Services;
(f) the Director of Public Works Department;
(g) the Inspector of Municipal Councils and Local Bodies;
(h) two members of the Legislature of the Union territory;
(i) two members representing the local authorities in the Union
territory;
(j) two representatives of associations or other organisations
connected with medicines or nursing and public health.

(2) The Minister in-charge of Health and the Secretary to Government in-charge
of the subject shall be the Chairman and Vice-Chairman of the Board and the Director of
Health Services shall be the Secretary to the Board.

(3) The members other than the official members of the Board shall be
nominated by the Government.

(4) An official member shall continue to be a member as long as he holds the

office by virtue of which he is such a member and any other member shall hold office
for a term of three years from the date on which his appointment is notified in the
Official Gazette and shall also be eligible for reappointment for a period not exceeding
two years:

Provided that a member appointed under clause (h) of sub-section (1) shall
cease to hold office when he ceases to be a member of the Legislature.

(5) A member appointed to fill a casual vacancy shall hold office for the
remainder of the term of office of the member in whose place he is appointed.

Functions of the Board

4. Subject to the provisions of this Act and the rules made thereunder, the functions
of the Board shall be to advise the Government for the planning and direction of the
health services provided under this Act and to perform such other functions as the
Government may, from time to time assign to it under this Act.
 39

Meetings of the Board

5. (1) The Board shall meet at such time and place as required and shall, subject to
the provisions of sub-sections (2) and (3), observe the procedure as may be prescribed in
regard to the transactions of the business at such meetings.

(2) The Chairman or in his absence the Vice-Chairman or in the absence of both,
any member chosen from among the members present, shall preside at a meeting of the
Board.

(3) All questions of a meeting of the Board shall be decided by a majority of

votes of the members present and voting in the case of equality of votes, the Chairman
or the persons presiding shall have exercised a casting vote.

Committees
6. (1) For the purposes of assisting the Board in exercising its powers, discharging
its duties or performing its functions as may be specified by it, the Board may constitute
one or more Committees.

(2) The Committee constituted under sub-section (1) shall consist of such
members as may be specified by the Board and such members shall also include
persons other than the members of the Board.

(3) The meeting of the Committees and the process of transactions of business
of all such committees shall be governed by regulations made by the Board.

Powers of the Government

7. (1) The Government shall have power to inspect, control and superintend the
operation of local authorities under this Act.

(2) The Government may from time to time define the powers to be exercised
and the duties to be performed by the Director or any member of his staff for the
purposes of sub-section (1).

(3) Nothing contained is sub-sections (1) and (2) shall be deemed to affect or
derogate from any powers possessed by the Government or the Collector under any
other law for the time being in force.
 40

Powers of the Director

8. (1) The Director shall have power to supervise and control all medical and
health establishments and all public health services within the territory except those
administered by the Central Government.

(2) The Director shall have the power to direct any local authority to provide
certain health services in the area or to carry out such measures as may be necessary
from time to time to safeguard the health of the people, failing which, the Director shall
have also the power to assume such responsibility and carry out such measures himself
or through his staff.

(3) The Director may, from time to time as occasion requires, make the services
of the Directorate available to local authorities either free of charge or on payment of
such fees as may be prescribed in respect of cleaning, execution, construction and
supervision of all health matters including sanitary schemes.

(4) In case of emergency arising from outbreak of epidemic or communicable

diseases or from any other cause endangering the life or health of the public, the
Director shall have power –

(a) to appoint additional personnel and organise public health

services for such periods as he may consider necessary;
and
(b) with the approval of the Government, to assume all or any
of the powers and functions of a local authority under this
Act;
and in every such case, the Director shall forthwith report the matter to the
Government.
Public health establishment of local authorities
9. Save as otherwise provided in this Act, it shall be the duty of every local
authority, within its local areas to perform the functions imposed on it, by or under this
Act.
Health Officers
10. Every local authority other than a City Corporation shall have such number and
types of health officers and staff for the said purpose as the Government may prescribe.

Appointment of persons to carry out the provisions of this Act

11. (1) Notwithstanding anything contained in this Act or in any other Act or Acts
governing the local authority or authorities concerned, the Government may, by general
or special order, appoint any person or persons to carry out such provisions of this Act
and in such areas as may be specified in the order.
 41

(2) The expenses incurred by such person or persons in doing so shall be met
from the funds of the local authority or authorities concerned, either wholly or in part
and where more than one local authority is concerned in such proportions as may be
determined by the Government.

Health Officer’s control over public health staff

12. (1) The Health Officer in charge of any local area shall exercise supervision and
control over all other members of the public health establishment in such area.

(2) Every local authority shall provide its Health Officer with adequate facilities
for the proper conduct of business of such Health Officer.

CHAPTER – III

PRIVATE MEDICAL AND HEALTH INSTITUTIONS

Definitions

13. (1) For purposes of this act, private Institutions include nursing homes,
maternity homes, X-ray institutions, blood banks, laboratories, hospitals, baths and
physiotherapy centres.

(2) "Nursing Home" means any establishment or premises used or intended to

be used for the reception of, and the providing of medical care including nursing care in
any form for, persons suffering from any sickness, injury or infirmity and includes a
maternity home, but does not include: -

(i) any hospital or other establishment/premises maintained or

controlled by Government; or any other authority or body
constituted by special Act of Parliament or State Legislature;
(ii) any institution for persons of unsound mind within the meaning
of the Indian Mental Act; and
(iii) any institution, house or home certified or approved by the
Ministry of Health under the Indian Mental Act.

(3) "Maternity Home" means an establishment where women are usually

received and accommodated for the purpose of confinement and antenatal and post-
natal care in connection with child birth.

(4) "Hospital" means any premises used for the reception of the sick and their
treatment.
 42

Registration
14. (1) No person shall open or conduct a nursing home or clinical establishment or
any other private medical or health institution without being registered in respect
thereof and except under the terms and conditions of a licence granted therefor in
accordance with the provisions of this Act and the rules framed thereunder.

(2) A registration made under this section shall be in force for a period of one
year.
Refusal to register
15. The Director may, by order, refuse to register an application for registration if he
is satisfied that the standards laid down or prescribed by the Government have not
been complied with.
Cancellation of registration
16. The Director may, by order, cancel the registration in respect of any such
institution on any ground which would entitle him to refuse an application for
registration in respect of that Institution:

Provided that before making an order under this section, sufficient opportunity shall
be given to the licensee to represent his case.

Appeal
17. A person aggrieved by an order of the Director under section 16 may, within a
period of one month from the date of receipt by him of a copy of that order, appeal to
the Government against that order in such manner as may be prescribed and the
decision of the Government on such appeal shall be final.

Entry and inspection

18. The Health Officer or any other Officer authorised by the Director in this behalf
may, at all reasonable times, enter and inspect any premises which is used or which the
Officer has the reasonable cause to believe to be used for the purposes and inspect the
records required to be kept under this Act.

Government’s control
19. The Government may, by rules, prescribe the qualifications of the types of staff,
their number, the minimum equipments required in the institution, the scale of
accommodation, arrangements for water supply, sanitation and other facilities
necessary in the institution and also exercise by itself or through any other authority
subordinate to such control over them, as may be necessary for the implementation of
this Act.
 43

CHAPTER – IV

WATER SUPPLY

Local authority to provide water supply

20. (1) Every local authority may, and if the Government so direct, shall provide or
arrange for the provision of a sufficient supply of drinking water for consumption by
the inhabitants of the area within its jurisdiction.
(2) The local authority shall, so far as may be practicable, make adequate
provision for securing ---
(a) the sufficiency and wholesomeness of water supply within
its area;
(b) that the water supply is continuous throughout the year
and that every house has available within a reasonable
distance a sufficient supply of wholesome water for
domestic purposes; and
(c) that the water supplied is at all times wholesome and fit
for human consumption.

(3) A local authority shall also provide a supply of water to every part of its
area in which danger to health arises from the insufficiency or unwholesomeness of the
existing supply and shall also exercise powers for requiring owners of houses to
provide a supply of water thereto.

(4) Notwithstanding anything contained in this section, if the Government

deems fit and necessary in public interest so to do, it may by notification in the Official
Gazette, assume the powers and duties under this section after giving due notice to the
local authorities concerned and also after considering their objections, if any.

Power of Government to direct local authority to execute water works

21. (1) For the purposes of providing its area or any part thereof with a supply of
water, a local authority may, with the approval of the Government, and subject to the
provisions of this chapter –
(a) construct, lay or erect filters, reservoirs, engines, conduits, pipes
or other works within or outside the limits of its local area;
(b) purchase or take on lease any water work or any water or any
right to store or to take or to convey water either within or
outside the limits of the local area; and
(c) contract with any local authority or other person or agency for
the supply of water.
(2) If in the opinion of the Government, a local area does not possess a
sufficient supply of wholesome water in the houses for consumption of its inhabitants,
 44

they may direct the local authorities concerned, either singly or in combination with the
local authority or authorities having jurisdiction over any neighbouring local area
which are similarly situated to execute within such time as the Government may fix
such works as may be directed by the Government for providing a sufficient supply of
wholesome water in the fair human consumption.
(3) The water works constructed or erected or laid under this section shall vest
in the local authority and it shall maintain adequate establishments for the working and
maintenance of, and repairs to the engines, pipes, pumps and fittings of water works
and other appurtenances thereto in the supply of water.

Power of Government to divert water from water main belonging

to a local authority
22. The Government shall have power to authorise to use all water from any water
main belonging to or in the control of a local authority for supplying water to any other
area, subject to such payment being made to the local authorities concerned and subject
to also such other conditions as the Government may consider reasonable:

Provided that before taking action under this section, Government shall
communicate to the local authority the grounds on which they proposed to do so, fix a
reasonable period for the local authority to show cause against the proposal and
consider its explanation or objection if any.

Water supply by pipe system

23. (1) In such areas as may be specified by the Government in this behalf, the
supply of water for drinking and other domestic purposes shall be effected by pipe
system, so that every house has within it or within a reasonable distance an available
source of water supply for the use of inmates of the house.

(2) In such areas as may be specified by the Government along with the piped
system of water supply, an effective system of drainage shall also be provided.

Supply for non-domestic purpose

24. (1) A local authority may provide for supply of water for non-domestic
purposes including water for the uses of animals, for cleaning of house drains and
sewers, for street watering and for the fire-fighting purposes on such scale as may be
prescribed by the Government.

(2) A local authority may also specify suitable water sources or collection for
executive uses for certain purposes.
 45

Contracts for bulk supply

25. A local authority may, with the previous approval of the Government,-

(a) enter into a contract for supply of water in its area or a part thereof
with another local authority or a water supply undertaking, or
(b) provide a supply of water in bulk to a local authority of an adjoining
local area, on such terms as may be agreed;
(c) provide supply of water by bulk or measure to ---

(i) any trade, manufacture or business;

(ii) medical or educational institutions, hostels, hotels and restaurants;
(iii) ports, ships, railways, cantonments, army and labour camps;
(iv) fountains, swimming pools and the like; and
(v) gardens and pastures;

on such terms as may be laid down:

Provided that the Government shall not approve any proposal under this section
unless it is satisfied that the proposal is not likely to interfere with the supply of water
for domestic or other purposes, within the area of the supplying local authority.

Loans

26. Subject to the approval of the Government, a local authority may have the power
to raise or take loans for the construction of water works and laying down the pipes,
etc. and to pay interest thereof.

Services of Chief Public Health Engineer

27. (1) Any installation of machinery or equipment by a local authority under

section 21 shall require the technical approval of the Chief Public Health Engineer; the
local authority shall also consult the Chief Public Health Engineer or any other Officer
authorised by him in this behalf, in the preparation, execution, maintenance and
supervision of any other work under this chapter.

(2) The Chief Public Health Engineer or the other officer shall have access to
any water works of the local authority and may inspect them from time to time.

Use of private lands

28. For the purpose of the execution of any work under this chapter, the local
authority or the Government or any officer of the Government, may, after giving
 46

previous notice to the owner or occupier, carry any in make, main, branch or supply
pipe or channel or any other work of life nature into, across or under any land, building
or premises:

Provided that reasonable compensation shall be payable to the owner or occupier of

the land, building or premises for any damage sustained by him through or in
consequence of any such work.

Other sources of water supply

29. (1) A local authority may, with the previous sanction of the Government, by
public notice, declare any lake, stream, spring, well, tank or other source of water-
supply, whether within or outside the limits of its local area, other than a source under
the control of the Government, the water from which is used for domestic purposes by
the public in the local areas, to be a source of public water supply for such purposes and
every such source shall thereafter vest in and be under the control of the local authority
to the extent necessary for such purposes.

(2) A local authority may, within the written consent of the owner, take over
the control and administration of any masonry well, tank or reservoir and reserve it for
public water supply; thereafter, it shall be the responsibility of the local authority to
keep the source free from pollution and in a clean and good condition.

Private tube-wells

30. The owner of a house or the owners of two adjoining houses may, with the
permission of the local authority, sink one or more tube-wells for the supply of water
for use of the inmates of the house or houses:

Provided that the local authority shall not grant the permission unless it is satisfied
that the water available from the tube-wells is safe from the point of view of public
health.
Survey of water sources

31. The Government may have the power to carry out a survey of the existing
sources of supply and water supply requirements of the area for the territory or part of
the territory for the purposes of supply and conservation of water and to prepare a
scheme for the improvement of water supply in the area.

Joint Water Board

32. (1) For the purpose of facilitating co-operation between local authorities in the
discharge of their functions under this chapter, the Government may, with the consent
 47

of the local authorities concerned, by order, constitute a Joint Water Board for two or
more local authorities with powers to construct and maintain water works and to take
all other measures for the provision and improvement of water supply in the areas of
the local authorities concerned.

(2) An order made under sub-section (1) may specify the powers and duties of
the Board and also provide for all matters incidental, consequential or supplementary
thereto.
(3) The Government may, after giving notice to the Joint Water Board and to
every local authority concerned, by a subsequent order amend or revoke an order made
under sub-section (1); and any such subsequent order may make provision for the
adjustment of the accounts of the Board, the apportionment of its liabilities among the
local authorities and for all incidental, consequential and supplementary matters.
(4) The expenses incurred by a Joint Water Board shall be apportioned between
the local authorities concerned in such manner as the Government may direct.
(5) Any dispute or difference between the local authorities or any of them and
the Joint Water Board shall be referred to the Government, whose decision thereon shall
be binding on all parties.
(6) The provisions of all the foregoing sections shall apply in relation to a Joint
Water Board constituted under this section as they apply in relation to a local authority.

Pollution of water

33. (1) No person shall wilfully or negligently do or cause to be done anything to

any pipe, fitting or other work connected with any water supply which is likely to result
in the wastage, misuse, undue consumption or contamination of the water.

(2) A Health Officer or a local authority may, by written notice, prohibit any
person from throwing, draining, running or otherwise discharging, permitting or
suffering to be carried into any declared source of water supply or the sides thereof any
trade effluent or refuse, filth or any harmful discharge from any drain, privy or sewer,
which is likely to injuriously affect the quality of the water and make it unsuitable for
domestic purposes.

(3) The Government may, on its own or on application made in this behalf by
the local authority or the local authorities concerned, take steps for the conservation of
water in and the prevention of pollution of water of any river, stream, lake, channel or
other source of public water supply in the territory.
 48

Rules for protection, examination and maintenance of water supply

34. (1) The Government shall have power to make rules providing for the
protection, maintenance and periodical examination of sources of water supply in the
Union territory.

(2) The Health Officer shall exercise such powers and discharge such duties as
may be prescribed, so that adequate control could be made by him with regard to
insanitary sources of water supply.

CHAPTER – V

PREVENTION AND CONTROL OF COMMUNICABLE DISEASES

Communicable or infectious diseases in general

35. For purposes of this Act ‘communicable disease’ or ‘infectious diseases’ means: -
(a) anthrax,
(b) cerebro spinal fever,
(c) chicken pox,
(d) cholera,
(e) diphtheria,
(f) enteric group of fevers,
(g) erysipelas,
(h) influenzal pneumonia,
(i) infective hepatitis,
(j) leprosy,
(k) measles,
(l) plague,
(m) rabies,
(n) relapsing fever,
(o) smallpox,
(p) tuberculosis,
(q) tetanus,
(r) malaria,
(s) typhus,
(t) virus encephalitis,
(u) whooping cough, and
(v) any other disease which the Government may, from time to time, by
notification declare to be a communicable disease either generally throughout the
territory or part thereof.
 49

Duty of the local authority

36. (1) The local authority shall take steps to prevent the outbreak of a
communicable disease and to control it by providing such diagnostic and laboratory
facilities, staff, medicine, appliances, equipment, facilities for removal, isolation,
accommodation of patients and other facilities may, in the opinion of the Health Officer,
be necessary for the purpose.

(2) If the local authority fails to take such steps as are recommended by the
Health Officer under sub-section (1) or if, in the opinion of the Director the steps taken
by the local authority are insufficient for the purpose, he may take or require or
empower any person to take such measures and, by pubic notice, prescribe such
temporary regulations to be observed by the public or by any person or class of persons,
as he shall deem necessary, to prevent the outbreak of a communicable disease or its
spread.
(3) Two or more local authorities may jointly take such steps and provide the
necessary facilities as may be recommended by the Health Officer/Officers under sub-
section (1) for the purpose of preventing the outbreak of a communicable disease and to
control it.
Jurisdiction over boats, vessels, vans, tents, etc.

37. The provision of this chapter shall apply to inland ship, vessel, boat or van lying
within the jurisdiction of the local authority and a tent or shed or structure used for
human transport or habitation.
Notified communicable diseases

38. For purposes of this Act "notified communicable disease" shall mean and include
any disease which the Government may, from time to time, by notification declare to be
notified disease either generally throughout the territory or in such parts thereof as may
be specified in the notification.
Obligation to notify

39. Every medical practitioner who, in the course of his practice, recognises the
existence of any "notified communicable disease" in any private or public dwelling
other than a public hospital, and every manager of any factory or public building,
keeper of a lodging house, every head of family or in his absence the nearest relative of
the patient present in the house or any attendant on the patient in the absence of his
relative, every person in charge of or any attendant on the patient and every owner or
occupier of a house, or every head of teaching institution who knows or has reason to
believe that any person in the premises under his management, control or occupation is
suffering from, or has died of a notified communicable disease, shall, if the case has not
been already reported, give information of the same with the least practicable delay: -
 50

(a) in Municipal area to the executive authority, the Health Officer or a Sanitary
Inspector, and
(b) in non-Municipal areas, to the Health Officer, a Sanitary Inspector or
Officer-in-charge of the nearest Health Centre or the nearest local authority.

Prohibition of the use of water from suspected source

40. (1) If it appears to the Health Officer that the water in any tank, well or other
place, if used for drinking or any other domestic purpose, is likely to endanger or cause
the spread of any communicable disease, he may, by public notice, prohibit the removal
or use of the said water generally or for any specified domestic purpose.

(2) No person shall remove or use any water in respect of which any such
notice has been issued in contravention of the terms thereof.

Control of patients

41. (1) When, in the opinion of the Health Officer or any other officer duly
authorised by him in this behalf any person is suffering from a communicable disease,
the Officer may direct –

(a) that the person be kept in isolation in his home, or

(b) if the person is without proper lodging or accommodation or
is lodged in such manner that he cannot in the opinion of the
Officer, be properly isolated in his home, the removal of such
person to a hospital or place at which patients suffering from
such communicable diseases are received for treatment.

(2) No person who has been ordered to be in home isolation shall leave the
home, and no person, who has been removed to a hospital or place shall leave the
hospital or place, until he has been permitted to do so by the Health Officer or any other
officer duly authorised by him in this behalf.

Exposure of persons and articles

42. A person who –

(a) knowing that he is suffering from a notifiable disease, exposed other

persons to the risk of infection by his presence or conduct in any street, public place,
place of entertainment or assembly, club, hotel or shop,

(b) having the care of a person whom he knows to be suffering from a

notifiable disease, causes or permits that person to expose other persons to the risk of
infection by his presence or conduct in any such place as aforesaid, or
 51

(c) gives, lends, sells, transmits or exposes, without previous disinfection, any
clothing, bedding or rags which he knows to have been exposed to infection from any
such disease or any other article which he knows to have been so exposed and which is
liable to carry such infection, shall be guilty of an offence, and
(d) no person having the charge or control of the body of any person who has
died from any dangerous disease shall permit or suffer any other person to come
necessarily into contact or proximity with the dead body:
Provided that nothing in this section shall apply to any person transmitting
with proper precautions any article for the purpose of having it disinfected.

Infected persons not to engage in certain trades and occupations

43. No person shall, while suffering from, or in circumstances in which he is likely to

spread, any communicable disease ---
(a) make, carry or offer for sale, or take any part in the
business of making, carrying or offering for sale, any
article of food for human consumption; or

(b) engage in any other occupation without a special

permit from the Health Officer of the local authority
concerned or otherwise than in accordance with the
conditions specified therein.

Prevention of communicable disease transmissible from animals

44. If in any local area any communicable disease transmissible to man breaks out or
is in the opinion of the Health Officer likely to break out amongst cattle or other
animals, it shall be the duty of the Health Officer to recommend to the local authority
the adoption of such measures as he may deem necessary for controlling and
preventing the disease.
Powers of Health Officers

45. (1) The Health Officer or any person duly authorised by him in this behalf may,
at any reasonable time, enter with or without assistants, inspect any premises in which
he has reasons to believe that any person who is suffering or who has recently suffered
from any communicable disease is or has recently been present or any inmate of which
has recently been exposed to the infections of such disease and medically examine any
person in such premises for the purpose of ascertaining whether such person is
suffering or has recently suffered from any such disease, and take any action that is
likely to prevent danger of spread to other.
 52

(2) If it appears necessary to the Health Officer in order to prevent the spread of
any communicable disease he shall have powers to prohibit or restrict by notice the use
of water from suspected sources, entry into house occupied by infected persons certain
works in affected premises, use of eating places or lodging houses, the presence of
infected persons in places of work or any public meetings, libraries, conveyance, etc.
and any other such source of danger which may occur for the purpose of this Act.

Destruction of hut or shed to prevent spread of infection

46. (1) If it appears to the Health Officer that the destruction of any hut or shed is
necessary to prevent the spread of any communicable disease he may, after giving to
the owner and the occupier of such hut or shed such previous notice of his intention as
may be in the circumstances of the case appear to him reasonable, take measures for
having such hut or shed and all the materials thereof destroyed.

(2) Such compensation as the local authority may consider reasonable, shall be
paid to any person who in its opinion sustains loss by the destruction of any hut or shed
under the powers conferred by sub-section (1); but save as provided in this sub-section,
no claim for compensation shall lie for any loss or damage caused by any exercise of the
powers aforesaid.
Infected clothes not to be sent to laundry

47. No person shall –

(a) send or take to any laundry or public washhouse or any pubic watercourse,
tank or well, for the purpose of being washed, or to any place for the purpose of being
cleansed, any clothing, bedding or other article which he knows to have been exposed
to infection from any communicable disease, unless such article has been disinfected by,
or to the satisfaction of the Health Officer, or a registered medical practitioner, or unless
under instructions from such a person, it is sent with proper precautions to a laundry
for the purpose of disinfection with notice that it has been exposed to infection; or

(b) place or cause or permit to be placed in any dust-bin or other receptacle for
the deposit of refuse any matter which he knows to have been exposed to infection from
a communicable disease and which has not been disinfected.

Use of public conveyance

48. (1) No person who knows that he is suffering from a notifiable disease shall –
(a) enter any public conveyance used for the conveyance of
persons at separate fares; or
 53

(b) enter any other public conveyance without previously

notifying the owner or driver thereof that he is so
suffering.
(2) No person having the care of a person whom he knows to be suffering from
a notifiable disease shall permit that person to be carried –

(a) in any public conveyance used for the conveyance of

persons at separate fares; or
(b) in any other public conveyance without previously
notifying the owner or driver thereof that person is so
suffering.

(3) The owner, driver or conductor of a public conveyance used for the
conveyance of persons at separate fares shall not convey therein any person whom he
knows to be suffering from a notifiable disease except in such cases of emergency and
subject to such restrictions and safeguards as may be prescribed by the Government.

(4) A local authority when so requested by the person in charge of a public

conveyance in which a person suffering from a communicable disease has been
conveyed shall provide for its disinfection.

Letting or sub-letting a building occupied by an infected person

49. No person shall, without a special permit from the Health Officer, let or sub-let,
or permit or suffer any prospective tenant to enter a building in which he knows or has
reason to know that a person has been suffering from a communicable disease, within
the three months, immediately preceding.

Prohibition of the exposure of other persons to infection

50. (1) No person who knows that he is suffering from a communicable disease
shall expose other persons to the risk of infection by his presence or conduct in ---
(a) any street or public place, or
(b) any market, theatre or other place of entertainment or
assembly, or
(c) any school, college, playground or such other place, or
(d) any hotel, hostel, boarding house, choultry, rest-house
or club, or
(e) any factory or shop.
 54

Explanation. – A person shall be deemed to know that he is suffering from a

communicable disease within the meaning of this sub-section if he has been informed
by the Health Officer or any other officer of the Public Health Department of the
Government or of a local authority, not below the rank of Health or Sanitary Inspector,
or a medical practitioner, that he is so suffering.

(2) No person who has the care of a person whom he knows to be suffering
from a communicable disease shall cause or permit that person to expose others to the
risk of infection by his presence or conduct in any place referred to in sub-section (1).

Forbidding work in infected premises

51. (1) If a case of notified disease occurs on any premises, the Health Officer may,
whether the person suffering from the disease has been removed from the premises or
not, make an order forbidding any work to which this section applies, to be given out to
any person living or working on those premises or in such part thereof as may be
specified in the order, and any order so made may be served on the occupier of the
factory from which the work is given out or on any contractor employed by such
occupier.
(2) An order under this section may be expressed to be operative for a specified
time or until the premises or any part thereof specified in the order have been
disinfected to the satisfaction of the Health Officer, or may be expressed to be
inoperative so long as any other reasonable precautions specified in the order are taken.
(3) This section applies to the making, cleaning, washing, altering,
ornamenting, finishing or repairing of wearing apparel and any work incidental
thereto, and to such other classes of work as may from time to time be notified by the
Director.
Prohibition of use of public library by infected person

52. No person who knows that he is suffering from a communicable disease shall
take any book or cause any book to be taken for his use, or use any book taken, from
any public place or circulating library.

Disposal of bodies of persons dying while suffering

from communicable disease

53. (1) No person having the charge or control of the body of any person who has
died while suffering from a communicable disease shall permit or suffer persons to
come unnecessarily into contract with, or proximity to, the body.

(2) No person shall, without the sanction in writing of an officer of the Public
Health Department of the Government or of the local authority concerned not below the
rank of Health or Sanitary Inspector, retain in any premises (elsewhere than in a public
 55

mortuary) for more than twelve hours the body of any person who has died while
suffering from any communicable disease.

(3) (a) If any such body (not being a body kept in a mortuary) remains
undisposed of for more than twelve hours without the sanction referred to in
sub-section (2), or
if the dead body of any person is retained in any building so as to endanger
the health of the inmates of such building, or of any adjoining or neighbouring building,

any Magistrate may, on the application of any officer referred to in sub-

section (2), order the body to be removed and disposed of within a specified time.
(b) A Magistrate may, in the case of the body of a person who has died
while suffering from a notified disease, or in any other case in which he considers the
immediate disposal of the body necessary, direct the body to be so disposed of, unless
the friends or the relatives of the deceased undertake the disposal of the body within a
time specified in the order.
(c) The expenses of the removal and disposal of any body under clause (a)
or clause (b) shall be borne by the local authority; but such expenses may be recovered,
as if it were a tax due to it, by the local authority from any person who would have been
legally liable therefor but for such removal and disposal, unless in the opinion of the
local authority he is too poor to do so.

(4) (a) If any person dies in a hospital or a place of temporary accommodation

for the sick while suffering from a notified disease, and the Health Officer certifies that
in his opinion it is desirable in order to prevent the spread of infection that the body
should not be removed from such hospital or place except for the purpose of being
taken direct to a burial or burning ground or a crematorium for being buried or
cremated, no person shall remove the body from the hospital or place except for such a
purpose.
(b) When the body is removed for the purpose aforesaid it shall forthwith
be taken direct to a burial or burning ground or a crematorium, and there buried or
cremated with the least practicable delay.

(5) Without the permission of the Health Officer, or a Magistrate, no person

shall cause or permit to be carried in a public conveyance the dead body of any person
who has died while suffering from a communicable disease.

Compulsory immunisation
54. (1) When the Health Officer considers that an area is likely to be affected with
any communicable disease, he may arrange for compulsory immunisation or
re-immunisation on a mass scale.
(2) All such immunisation or re-immunisation shall be free of charge.
 56

Restriction on movement

55. In the event of the prevalence of any notified disease in the territory or any part
thereof the Government may, with a view to prevent the spread of infection of the
disease by order notified in the Official Gazette regulate or prohibit –
(a) the movement within the territory of persons or goods, or
(b) the influx of persons or the import of goods into the territory.

Closure of certain places

56. If, on the application of the Health Officer, the Magistrate having jurisdiction is
satisfied that it is necessary, in the interest of public health and in order to prevent the
spread of any communicable disease, to close any dwelling or lodging house or any
place where articles of food are sold or prepared, stored, or exposed for sale or
distribution, the Magistrate may, by order, direct it to be closed until the expiry of such
period as may be specified in the order or until it is certified by the Health Officer that
there is no further risk of spread of infection.

Power of Magistrate to prohibit assembly of persons

57. In the event of the prevalence of a notifiable disease in any local area, any
Magistrate having jurisdiction not being a Magistrate of the third class, may on the
application of the Health Officer, by special order prohibit the assemblage of any
number of persons exceeding twenty-five in any place, whether public or private or in
any circumstances or for any purpose, if in his opinion such assemblage in such place or
in such circumstances or for such purpose is likely to become a means of spreading the
disease among the people.

Power of Government to confer special powers on officers to control

notified diseases
58. (1) (a) In the event of the prevalence or threatened outbreak of a notified
disease in any place or area, the Government may declare that such place or area, is
visited by, or threatened with, an outbreak of such disease.
(b) The power conferred on the Government by clause (a) may also be
exercised, in the case of a place or area situated in a district, by the Collector of the
district subject to the control of the Government.
(c) Any declaration made by the Government under clause (a) or
withdrawal thereof in whole or in part shall be published in the Official Gazette and
shall come into operation on the date of such publication.
(d) Any declaration made by the Collector under clause (b) or withdrawal
thereof in whole or in part shall be published in the Official Gazette, and shall come into
operation on the date of such publication.
 57

(2) When a declaration under clause (a) or clause (b) of sub-section (1) comes
into operation and until it is withdrawn, the Collector of the District or any person duly
authorised by him by general or special order, or if empowered in this behalf by rules
made under this Act, the Health Officer or any other officer of the local authority
concerned or any officer of the Government other than the Collector may, subject to
such exceptions, restrictions, limitations and conditions and to such control as may be
prescribed either generally or in the case of the notified disease to which the declaration
relates, exercise the following powers, namely: --

(a) power to order the evacuation of infected houses and houses adjoining
them or in their neighbourhood, or generally of all houses in an
infected locality;
(b) power to make vaccination and preventive inoculations compulsory
subject to the provisions of sub-section (3);
(c) power to direct ---

(i) that persons arriving from places outside the local area, or
residing in any building adjacent to, or in the
neighbourhood, of an infected building, shall be examined
by any specified medical officer or by any one of a specified
class of medical officers;

(ii) that the clothing, bedding or other articles belonging to such

persons shall be disinfected, if there is reason to suspect that
they have been exposed to infection; and

(iii) that any such person shall give his address and present
himself daily for medical examination at a specified time
and place, for a period not exceeding ten days;

(d) power to take such measures as may be necessary ---

(i) in respect of, or in relation to, persons exposed to infection

from any notified disease, or likely to infect other persons
with any such disease, and
(ii) in respect of, or in relation to articles exposed to infection
from any notified disease, or likely to infect persons with
any such disease,

including, in case (i) the placing of restrictions on the movements of such persons, and
in case (ii) the destruction of such articles and the placing of restrictions on their export
from, import into, or transport within the local area;
 58

(e) Power to direct that at any place within or outside the local area, any
consignment of grain exported from, or imported into such area by
rail, road or otherwise, shall be examined and, if necessary, unloaded
and disinfected in any specified manner; and
(f) power to close all or any existing market and to appoint special places
where markets may be held.

(3) (a) If any person who, or a child in whose care, is sought to be vaccinated
or inoculated in pursuance of the power referred to in clause (b) of sub-section (2),
declares before a Magistrate specially empowered by the Government in this behalf that
as a result of a careful inquiry into the subject, he believes that such vaccination or
inoculation will be injurious to his health or the health of the child, as the case may be,
the Magistrate may, after giving notice to the Health Officer and hearing any
representations made by him or on his behalf, exempt such person or child from
vaccination or inoculation, on condition of the person aforesaid undertaking to subject
himself and the members of his family to isolation of such description and for such
period and to such further restrictions, if any, as may be directed by the Magistrate:

Provided that any exemption granted under this clause shall cease to have
effect after a conviction under clause (b) and no exemption shall be granted to any
person who has been so convicted.

(b) Any person who commits a breach of any undertaking given by him
under clause (a) shall be punished with imprisonment which may extend to three
months, or with fine, or with both.

(4) The local authority may, in its discretion, given compensation to any person
who in its opinion has sustained substantial loss by the destruction of any property
under the powers conferred by this section; but save as provided in this sub-section, no
claim for compensation shall lie for any loss or damage caused by any exercise of the
powers aforesaid.
Destruction of rats, mice, etc.

59. (1) The occupier of every premises, or if the premises are unoccupied, the
owner thereof, shall take such steps as may be reasonably practicable for the destruction
of rates, mice and other animals susceptible to plague infesting such premises.
(2) Where the Health Officer is of opinion that the occupier or owner of any
premises has failed to fulfill the obligation laid on him by sub-section (1), he may either-

(a) serve a notice on such occupier or owner, requiring him

to take such steps and within such time as may be
specified in the notice, or
 59

(b) enter upon such premises and take such steps as may be
necessary for the purpose of destroying the rats, mice
and other animals susceptible to plague infesting the
same, after giving not less than twenty-four hours
previous notice to such occupier or owner.

(3) Any expenses incurred under clause (b) of sub-section (2) may be recovered
by the local authority concerned from the occupier or owner, as the case may be, as if it
were a tax due from him to the local authority.

Special provision for small-pox

60. (1) the Government shall, through the local authority, take such steps as may be
prescribed to make adequate arrangements for compulsory vaccination and
revaccination of children and persons residing in each locality.
(2) The parent or guardian of every child shall, before it completes three
months of age cause the child to be vaccinated unless the child is certified to be unfit for
vaccination and shall also get him revaccinated after a period of three years from the
date of successful primary vaccination.

Venereal diseases

61. Subject to such rules as may be prescribed and such directions as may be given
by the Government, the local authority may, make such arrangements in its local area –

(a) for the free diagnosis and treatment of persons suffering or

suspected to suffer from venereal disease; and
(b) for the prevention of infection from such diseases.

Rules for prevention, treatment and control of disease

62. The Government shall have power to make such rules as they deem fit for the
treatment of persons affected with any epidemic or communicable disease and for
preventing the spread of such diseases and the said rules may also specify the authority
or authorities who shall enforce and execute such rules.

Maternity and child welfare

63. Every local authority shall be bound to carry out such measures pertaining to
maternity and child welfare as may be prescribed.
 60

CHAPTER – VI
COLLECTION AND DISPOSAL OF COMMUNITY WASTES

Local Authority to provide for collection and disposal of

community wastes

64. Subject to provisions contained in the Puducherry Sewerage Act, if any, it shall
be the duty and responsibility of a local authority to adopt measures for the hygienic
collection and disposal of community wastes from all areas within the jurisdiction.
Definitions
65. For the purposes of this Chapter ---
(1) Community wastes shall mean any one or all of the following matters,
namely:-
(i) sullage including overflow water and storm water;
(ii) sewage, meaning night soil and other contents of privies,
urinals, cesspools or drains and including trade effluents
and discharges from manufactories, factories and industrial
concerns of all kinds;
(iii) offensive matters, meaning kitchen or stable refuse, dung,
dirt, putrid or putrefying substances, sputum, filth of any
kind and sewage;
(iv) rubbish, meaning dust, ashes, sweeping, broken bricks,
mortar, glass and refuse from houses, manufactories,
factories and industrial concerns of any kind which is not
offensive matter or sewage.

(2) Collection and/or disposal of community wastes means any or all of the
following measures: --
(i) drainage including sewage disposal;
(ii) sewerage, the term drain includes a sewer, a house drain, a drain of
any other description, a tunnel, a culvert, a ditch or channel or any
other device for carrying off sullage, sewage, offensive matter, trade
wastes, polluted water, rain water and sub-soil water;
(iii) conservancy which means the removal and disposal of sewage,
offensive matter and rubbish and includes scavenging.

Joint Water and Drainage Board

66. The Government may, in consultation with the local authority or local authorities
concerned, establish a Joint Water and Drainage Board for providing, maintaining,
administering the water works and removal of community wastes from the areas of two
or more local authorities and may prescribe necessary rules for the purpose.
 61

Improvement or extension of works

67. (1) If, in the opinion of the Government, any local area or part thereof requires
to be provided with a system of public drains or sewers or the existing drains or sewers
require to be improved or extended, the Government may, by order, direct the local
authority to provide or execute such works as it may consider necessary or to prepare a
scheme for such purpose, within such time as may be specified in the order.

(2) A local authority shall consult the Chief Public Health Engineer in the
preparation of and extension of any scheme for provision or improvement or extension
of drains and sewers.

(3) Every scheme prepared under this section shall require the approval of the
Government before it is taken up for execution.

Execution of the scheme and maintenance

68. (1) When a scheme prepared under the foregoing sections has been approved
by the Government, it shall be the duty and responsibility of the local authority subject
to such rules as may be prescribed to execute the scheme as expeditiously as possible
subject to the general control and supervision of the Chief Public Health Engineer.

(2) The local authority shall maintain in proper order and in proper state of
affairs all works laid down, set up or installed subject to such control and supervision of
the Chief Public Health Engineer and of the Government as may be prescribed for the
purpose.
Acquisition and use of private lands and buildings

69. (1) The Government may carry any drainage, sewer or channel of any kind
across and under any land or building.
(2) The Government may acquire, purchase or take lease of any land or
building needed for the purpose of executing works including such land as may be
required:
Provided that a reasonable compensation shall be payable to the owner or
occupier of the land or building for any damage sustained by him through or in
consequence of any such operation.

The control and administration of public drains and sewerage disposal

70. Subject to other special laws provided for the purpose, the control and
administration of public drains and sewerage disposal works and of the lands and
buildings needed shall vest in the local authority.
 62

Discharge of sewerage or waste water

71. (1) A local authority shall not permit conveying of sewage or any waste water,
affluent or filth by any person or persons or cause any of its own drains and sewers to
discharge into a stream, channel, water course or lake which is used as a source of water
supply or for bathing, washing and other purposes.
(2) Where there is no scope for disposal of sewage into any river, stream, water
course or lake, in any inland area, the local authority may discharge and deposit the
sewage or refuse in such manner as to make, after settlement, the land suitable for
farming purposes.
(3) The Government may use or allow such land to be used either free of charge
or on payment of such charges as the Government may fix, for sewage-farming or
pisciculture; provided that such land shall not be used for the production of any article
of food which is usually consumed raw without cooking or processing.
(4) All sewage farms shall be managed under the direct supervision of an
agricultural expert.

Restriction on discharge of trade affluents and waste

72. (1) No trade affluent or waste materials from any trade premises, factory,
workshop or work place shall be discharged or put into a public sewer or drain except
under permission of and in accordance with the terms and conditions laid down by the
Government and in such manner as may be directed by the Director of Health Services.
(2) The local authority shall connect or cause to be connected drains and water
carriage system with their main sewer or public drain on such conditions and payment
as may be fixed by the local authority.

Permission to construct septic tank and sanitary latrines

73. The local authority may permit an owner or occupier of any house or premises or
any factory or business concern to provide a septic tank or sanitary latrines for the
disposal of the nightsoil in such manner as may be approved by the local authority.

Common privies

74. (1) A local authority may permit the construction of common privies, urinals
and drains from any group of houses or huts.

(2) In any unsewered area, the local authority may require every house either to
provide septic tank, dug well or sanitary latrines and/or other methods of hygienic
disposal of nightsoil.
 63

Nuisance from offensive matters

75. No person shall allow the water of any sewer, privy, latrine, urinal or cesspool or
any liquid offensive matter to run or to be drained into or to be thrown or put upon any
street or open space or to leak through any external wall.

Responsibility of the local authority to provide public latrines,

urinals and dust bins

76. (1) A local authority shall provide and maintain in proper sanitary condition
latrines or urinals at convenient places for the use of the public.

(2) A local authority shall cause public dust-bin or other convenient receptacles
to be provided at suitable intervals and in proper and convenient situations; and direct
by notice that all sweepings in any house or premises and all rubbish, garbage,
offensive matter accumulated therein shall be colleted by the occupier of the house or
premises and deposited in such receptacle.

Cleaning of roads and roadside drains

77. Every local authority in an urban or semi-urban area shall make arrangements
for sweeping of the public roads under its control and for removing the rubbish, dirt
and other matter from such roads and from the dust-bins and other receptacles, and for
cleansing and flushing of the roadside drains.

Disposal of carcasses

78. The local authority shall secure and set apart place or places away from the
inhabited locality, and shall maintain the necessary staff for the removal and disposal of
carcasses of dead animals in such manner as not to be a source of nuisance or danger to
the people.
The local authority to provide establishment, equipment and
control and supervision

79. (1) A local authority shall maintain the personnel and organisation for the
removal of the community waste from all areas within its jurisdiction and shall provide
and maintain an adequate number of nightsoil and sullage carts, hand carts,
equipments and other appliances in proper working order for satisfactory service
throughout the year.
(2) Subject to rules framed by the Government the entire establishment,
maintenance, control and supervision of the staff and equipment shall be under the
direct control and supervision of the Health Officer.
 64

Duties of local authorities

80. The local authority shall discharge its functions and duties entrusted to it under
this chapter in such manner as may be prescribed.

Levy of sanitation tax

81. A local authority may, with the permission of the Government, levy a sanitation
tax in addition to water rate and other rates.

Combination and control

82. Subject to the approval of the Government and on such terms and conditions as
the Government may decide, two or more local authorities may jointly provide for the
disposal of community wastes or may enter into contract with a limited company for
the purpose.
CHAPTER – VII

SANITATION
Survey of housing and sanitation

83. A local authority may, and when so directed by the Government shall, subject to
such rules as may be prescribed, undertake a survey of the housing accommodation of
the inhabitants of its area in order to ascertain whether the different kinds of
accommodation and suitable and sufficient for the persons living therein and whether
they are provided with adequate water supply and essential sanitary conveniences in
accordance with the provisions of this Act and shall, so far as is reasonably practicable,
take steps to remedy the defects, if any, revealed by such survey.

Notification of residential areas

84. An urban local authority may, subject to the provisions of this Act and rules
framed thereunder, notify areas within its jurisdiction which shall be reserved for
residential purposes.
Planning of residential area
85. No scheme of planning of new residential areas or of improvement of existing
areas shall be approved or executed by a local authority unless the scheme is in
accordance with the rules made under this Act and also makes suitable provisions in
respect of the following matters, namely: --
(a) water supply to the inhabitants of the area for drinking and
other purposes;
(b) drainage and sewage disposal including the provision of public
sanitary conveniences;
(c) places for the disposal of carcasses of animals; and
(d) burning and burial grounds.
 65

Building regulations
86. No building shall be erected in the areas of a local authority unless they are
approved by the concerned local authority and such constructions are in accordance
with the rules framed in this behalf.

Prohibition of the use of building

87. A local authority may prohibit the use and occupation of any house, building,
shed, room, flat, tenement, barrack or any such accommodation or any part thereof,
either existing or new for use as human habitation if, in the opinion of the Health
Officer or the Public Health Engineer it is not fit for human habitation by reason of
defect or deficiency in its water supply, sanitary conveniences or it is in such condition
as to be a nuisance or danger to health or life, unless and until the causes are removed
to the satisfaction of the Health Officer or Public Health Engineer.

Slum area
88. (1) Where a local authority on/upon the report of Health Officer is satisfied as
regards any area that the buildings in that area are in any respect unfit for human
habitation or are by reason of overcrowding, faulty arrangement and design or lack of
sanitary facilities or a combination of these factors detrimental to safety and public
health, it may by notice declare such area to be a slum area.
(2) The local authority may at any time by a written notice require the owner of
any area declared to be a slum area under sub-section (1) to carry out all or any of the
works of improvement specified in the notice within a specified time.
(3) When any improvements required by a notice under sub-section (1) are not
carried out to the satisfaction of the local authority, the local authority shall have the
power to carry out/cause to carry out the improvements specified in the notice and all
expenses incurred thereby shall be recovered from the owner as tax due to him to the
local authority.
Building Regulations Advisory Committee
89. The Government may appoint a committee known as the Building Regulations
Advisory Committee for the purpose of advising the Government on the exercise of the
powers to make building regulations and on other subjects connected with building
regulations.
CHAPTER – VIII
FOOD SANITATION

Provisions supplementary to other enactments

90. The provisions of this chapter are in addition and supplementary to the
provisions in Central and State enactments, orders, rules and regulations in force and
shall not mean or be interpreted to mean anything contrary to or in contravention of
any such provision, order, rule or regulation.
 66

Requirement as to licences
91. (1) No person shall, without or otherwise than in conformity with the terms and
conditions of a licence granted or renewed by the executive authority in such manner as
may be provided in this behalf, --
(a) keep within the local area any lodging house, eating house,
tea shop, coffee house, café, restaurant, refreshment room or
any place or mobile structure for the consumption of any
food or drink, or for the sale, preparation of any food or
drink; or
(b) slaughter within the local area except in a pubic or a
licensed slaughter house any cattle, horse, sheep, goat or pig
for sale as food or skin or cut up in carcass or dry or permit
to be dried any skin in such manner as to cause a nuisance;
or
(c) carry on within the local area the trade of a butcher,
fishmonger or poulterer; or
(d) use any place within the local area for the sale of flesh or fish
intended for human food; or
(e) keep or open a dairy; or
(f) open or run a market:

Provided that the local authority may authorise a person to slaughter without
licence any animal for the purpose of a religious ceremony:
Provided further that no licence shall be required for a place used for the
selling or storing for sale of preserved flesh or fish contained in air-tight or hermetically
sealed receptacles:
Provided also that no licence shall be required for any place included in a
public market licensed under the law governing the local authority.

(2) The licence or renewal of the licence granted under sub-section (1) shall
expire at the end of the year for which it is granted unless the executive authority,
acting on the advice of the Health Officer, considers for special reasons that it should
expire at an earlier date, in which case such earlier date shall be specified in the licence
as the date of expiry of the licence or renewal of licence.

(3) Where the executive authority is at any time, of opinion that the building,
mobile van, vehicle or place in respect of which a licence is granted or renewed under
sub-section (1) is kept in contravention of any of the terms or conditions of the licence or
of the provisions of the rules made under this Act, he may, without prejudice to any
other action, which may be taken in respect of such contravention, cancel or suspend
such licence after giving the holder of the licence a reasonable opportunity of showing
cause against the proposed cancellation or suspension.
 67

(4) If the executive authority refuses to grant or renew, or cancels or suspends,

a licence under this section, he shall deliver to the applicant a statement in writing of
the grounds on which his application is refused or his licence is cancelled or suspended.

(5) Any person aggrieved by the refusal to grant or renew, or by the

cancellation or suspension of, a licence by an executive authority under this section,
may appeal to the local authority and the appeal shall be disposed of in accordance
with the rules prescribed by the Government.
Prohibition of sale of unsound food
92. (1) No person shall ---
(a) sell, expose or hawk about for sale, or keep, store or prepare for
sale, any animal intended for human consumption which is
diseased or the flesh of any animal, which has died on account
of natural causes; or
(b) sell, expose or hawk about for sale, or keep, store, manufacture
or prepare for sale, any food or drug intended for human
consumption which is unfit for such purpose or is
unwholesome.
(2) In any prosecution under sub-section (1) the Court shall, unless and until
the contrary is proved, presume --
(a) that any animal found in the possession of a person who is in
the habit of keeping animals of that class for sale for human
consumption, has been kept by such person for sale, and
(b) that any food or drug found in the possession of a person who
is in the habit of keeping, storing, manufacturing or preparing
such food or drug for sale for human consumption, has been
kept, stored, manufactured or prepared by such person for sale.
Inspecting Officers
93. The Government may empower the Health Officers and the Food Inspectors
appointed under the Prevention of Food Adulteration Act, 1954*, or any class of officers
in the employ of the Government or of a local authority to enter any place at any time
by day or night, with or without previous notice and to inspect and seize any animal of
food and any utensil or vessel used for preparing, manufacturing or containing any
article of food, during manufacture, store, sale, distribution or in the course of transit of
such animal or food.
Seizure and destruction of decomposed and unwholesome food stuff
94. (1) No person shall sell or distribute, either himself or by any other person, any
food either cooked or raw and including any fish, meat, vegetable or fruit, which has
become decomposed, putrid, rancid or foul-smelling or has been otherwise rendered
unwholesome, unfit for human consumption or injurious to health.

* Now, the Food Safety and Standards Act, 2006 (Central Act 34 of 2006).
 68

(2) If, in the opinion of an inspecting officer authorised under section 93 any
such article appears to be unwholesome or unfit for human consumption or injurious to
health, the inspecting officer may forthwith seize and,
(a) with the consent of the owner or the person in whose possession it is
found, forthwith destroy or cause it to be destroyed in such manner as
to prevent its use for human consumption,
(b) if such consent be not obtained, then –
(i) if the article is of a perishable nature, it may, with the
approval of any Magistrate or the Health Officer or
Medical Officer of Health likewise, be destroyed, and
(ii) if the article is not of a perishable nature, it shall be
dealt with in accordance with the provisions of
section 11 (4) of the Central Act 37 of 1954*.

(3) The expenses incurred in taking any action under sub-section (2) shall be
paid by the person who was in possession of such article at the time of seizure.

Flesh of dead animal not to be consumed

95. No person shall knowingly consume the flesh of any animal which has died of
natural causes.

Explanation. – It shall be no defence to a prosecution under this section that the flesh
was consumed as a matter of custom or as a matter of right on account of services
rendered in removing dead cattle or any other ground.
Restrictions on sale of meat from outside
96. (1) No person shall bring into any local area without the permission in writing
of the Health Officer, the flesh of any animal slaughtered outside the local area or
otherwise than in a slaughter house maintained or licensed by the Government or by a
local authority.
(2) Any flesh brought into the local area in contravention of sub-section (1) may
be seized by the Health Officer or any officer or servant of the local authority authorised
by him in this behalf and sell or otherwise dispose of as the Health Officer may direct;
and in the case of sale, the sale proceeds shall be credited to the funds of the local
authority.
(3) Nothing in this section shall apply to ---
(a) cured or preserved meat, or
(b) flesh or meat carried in course of transit through any local
area for consumption outside the limits thereof; or
(c) flesh or meat brought into the local area for immediate
domestic consumption and not for sale:
 69

Provided that the local authority may, by public notice, direct that the
provisions of this section shall apply to cured or preserved meat of any specified
description or brought from any specified place.

Rules
97. The Government may make rules for prevention of food infections or food
poisoning and for other matters necessary for the effective implementation of the
provisions of this chapter.
CHAPTER – IX

NUISANCES AND OFFENSIVE TRADES

What are nuisances

98. Without prejudice to the definition of "nuisance" in clause (23) of section 2, the
following shall be deemed specifically to be nuisances for the purposes of this chapter,
namely: --
(a) any premises in such a state as to be prejudicial to health or a
nuisance;
(b) any pond, pool, ditch, gutter, water course, latrines, cesspool,
drain or ash pit which is in such a state as to be prejudicial to
health or a nuisance;
(c) any animal kept in such place or manner as to be prejudicial
to health or a nuisance;
(d) any accumulation or deposit of refuse or other matter which is
prejudicial to health or a nuisance;
(e) any factory (not being a factory governed by the Factories Act,
1948), workshop or workplace which is not provided with
sufficient means of ventilation or in which sufficient
ventilation is not maintained or which is kept clean or free
from noxious effluvia or which is so over-crowded while
work is carried on as to be prejudicial to the health of persons
employed therein;
(f) any noise, vibration, dust, cinders, smoke, irritating smell or
offensive odor produced by a factory, workshop or workplace
which is nuisance to the neighbourhood.

Removal of nuisances
99. (1) Subject to the provisions of this Act and the rules framed thereunder, the
local authority shall arrange for detection, inspection, allotment and removal of
nuisance.
(2) Every owner, lessee or occupier of the premises or other persons responsible
for the causation of nuisances shall forthwith comply with the directions given by the
local authority, failing which the local authority shall take remedial actions and realise
 70

expenses incurred from the owner, lessee, occupier or persons concerned and may in
addition prosecute the offenders.
(3) A local authority may take the remedial measures including closure of any
cattle shed, stable, khatal, offensive trade from within or the vicinity of a residential
area.
Information regarding nuisance
100. Any person aggrieved by a nuisance in any local area may give information of
the same to the Health Officer or any other Officer of the Public Health establishment of
the local authority.
Power to Health Officer to abate nuisance
101. If the Health Officer is satisfied, whether upon information given under section
100 or otherwise of the existence of a nuisance, he may, by notice require the person by
whose act, default or sufferance the nuisance arises or continues, or if that person
cannot be found, the owner or occupier of the premises on which the nuisance arises or
continues, to abate the nuisance and to execute such works and take such steps as may
be necessary for that purpose:

Provided that ---

(a) where the nuisance arises from any defect of a
structural character, the notice shall be served on the
owner of the premises, and
(b) where the person causing the nuisance cannot be found
and it is clear that the nuisance does not arise or
continue by the act, default or sufferance of the owner
or the occupier of the premises, the Health Officer may
himself forthwith do what he considers necessary to
abate the nuisance and to prevent a recurrence thereof.

Restrictions on the use of buildings

102. No person shall use or permit the use, except under permission from the local
authority, any premises, building or structure for the purpose of any trade, industry or
manufacture or for any other purpose which is dangerous or likely to be dangerous to
health or to cause nuisance.

Notification of offensive trade

103. A local authority may, by public notice, and in such manner as may be
prescribed specify the offensive trades which, in its opinion, are or are likely to be
dangerous to life or health and to which the provisions of section 102 shall apply:

Provided that no notice under this section shall take effect before the expiry of
sixty days from the date of publication of the notice or, except with the previous
sanction of the Government, in any place outside the limits of the local area.
 71

Licensing of offensive trade

104. (1) After a notice under section 105 has taken effect, no person shall use or
permit to be used any premises in the local area for carrying on any offensive trade
specified in the notice, except under a licence granted by the executive authority, in
accordance with the provisions of this Act and the rules framed thereunder.
(2) On application made to him in this behalf, the local authority may either
grant a licence or, for reasons to be recorded, refuse to grant a licence.
(3) Every licence granted under this section shall be subject to such rules
framed under this Act and other conditions and restrictions as may be specified therein
and shall expire at the end of the year in which it is granted.
(4) If a licensee contravenes any of the terms and conditions of the licence, the
local authority may, after giving the licensee an opportunity of being heard, cancel the
licence.

Notification of areas for offensive trades, and licensing, for such purposes

105. (1) Every local authority for an urban, semi-urban or rural area may, and if so
required by the Government shall, within the time specified by the Government notify
in the prescribed manner the locality or localities which shall be reserved for
establishment or carrying on any of the offensive trades as may be notified by the
Government from time to time and may at any time notify additional localities for the
purpose.
(2) No person shall use any land or premises in any urban, semi-urban or rural
area for any of the trades of processes so notified, --

(a) unless such area has been notified under sub-section (1) and
(b) without obtaining a licence from the local authority.

Local authority to provide sufficient land for such purposes

106. For the purposes aforesaid the local authority may purchase, acquire, take lease
of or otherwise provide sufficient lands suitable for the purpose and allot them to the
traders on such terms and conditions as the Government may approve.

Removal of offensive trades to reserved areas

107. The local authority may direct the removal of any offensive trade in any area
other than a reserved area existing on the date of notification, to a reserved area and the
expenses for such removal shall be borne by the local authority. In case of dispute about
the removal or the expenses, the matter shall be referred to the Government whose
decision shall be final.
 72

Provision for drinking water etc.

108. (1) The local authority shall in accordance with such rules as may be prescribed
in this behalf provide or arrange for sufficient supply of safe and potable water for
drinking and domestic purposes in all such reserved areas and may also provide and
arrange for water for trade purposes on payment of such charges as the local authority
may determine with the approval of the Government.
(2) With the permission of the local authority the traders or business concerns
may themselves provide or arrange for the supply of water in such quantity and of such
quality and purity as may be specified by the Health Officer.

Sanitary conveniences

109. There shall be adequate provision of sanitary conveniences in all premises and
houses used for offensive trades and they shall be provided and maintained by the
trade or business concerns.

Disposal of trade wastes and levy of charges

110. (1) The local authority may make special provision for drains and sewers in the
reserved areas and the wastes and affluents from such offensive trades or business shall
be disposed of in such manner and after such treatment as the Chief Public Health
Engineer may direct.
(2) The local authority may levy charges for the use of its drains and sewers
and for special provision of collection and disposal of trade wastes.

Powers of entry and inspection

111. The executive authority, the Health Officer or any other Officer of the local
authority or of the Government duly authorised in this behalf may enter and inspect
any premises for the purpose of enforcing any of the provisions of this chapter:
Provided that no entry shall be made between sunset and sunrise except when
the nuisance is caused by anything done or omitted to be done in the premises between
sunset and sunrise.
Prohibition of the deposit of rubbish etc., in the street etc.

112. (1) No person shall deposit or cause or suffer any member of his family or
house-hold to deposit, any carcasses of animals, any dust, dirt, dung, ashes or refuse or
filth of any kind, any animal matter, any broken glass, earthenware or other rubbish, or
any other thing which is or may be a nuisance, in any drain beside a street, or on any
open space (not being private property), or on any quay, jetty or landing place, or on
any part of the sea-shore, or on the bank of any water-course, except in such receptacles
 73

as may be provided or at such places, in such manner and at such hours, as may be
fixed by the Health Officer.
(2) No person shall ease himself, or cause, permit or suffer any member of his
family or house-hold to ease himself, in any such street, arch, drain, open space, quay,
jetty, landing place, sea-shore or bank aforesaid.

Rules necessary for implementation

113. The Government may also prescribe by rules the manner under which the
grant, refusal and cancellation of licences and the fees chargeable are to be governed,
the restrictions of use of houses and premises, the charges for the abatement and
removal of nuisances, the notification and reservation of areas for offensive trades, the
removal and the compensation if any, for such removal of existing offensive trades in
areas other than reserved areas, provision of water supply, drain and sewerage,
sanitary conveniences and other amenities and the scale of charges therefor and the
disposal of trade wastes and the levy of charges.

CHAPTER – X

FAIRS, FESTIVALS AND PLACES OF PILGRIMAGE

Notification of areas
114. The Government or the local authority with the approval of the Government,
may declare any area or areas in which a fair or festival is usually held or is to be held
and any place of pilgrimage to be a notified area or areas for the purposes of this
chapter for such period as may be specified.

Notice of fair or festival and particulars

115. The persons or authority in charge of any fair or festival shall not less than 60
days before the commencement, intimate to the local authority or the Health Officer of
the local authority concerned or if the fair or festival held within the jurisdiction of two
or more local authorities, each of the local authorities concerned, the date of
commencement of the fair or festival concerned and other particulars as may be
required by the local authority or the Health Officer in this connection.

Provision of sanitary arrangements and medical relief arrangements

116. During the period of the fair, festival or pilgrimage, the local authority shall,
subject to the rules made in this behalf, make special arrangements, provide adequate
sanitary facilities regarding water supply, collection and disposal of community wastes
and detection, segregation and treatment of cases of communicable disease, prevention
of the introduction and the spread of any communicable disease and medical relief
arrangements both for diseases and accidents as may be directed by the health
authority.
 74

Power of supervision of arrangements

117. Subject to the provisions of this Act and Rules, a local authority and the Health
Officer concerned shall have the power to supervise and control all the special
arrangements mentioned in section 116.

Power of entry and seizure of food

118. The Health Officer or any officer authorised by the local authority or of any of
the local authorities concerned may enter and inspect any building or shop in the fair,
festival or pilgrimage centre which is a source of food supply and may seize any food
prepared or offered for sale or stored or in the course of transit which he has reason to
believe is unwholesome or unfit for human consumption and destroy the same
forthwith in accordance with such rules framed in this regard.

Power of acquisition of building for an emergency

119. In case of any emergency the local authority may with the sanction of the
District Magistrate depute any person to enter, occupy and use any land or building in
the notified fair, festival or pilgrimage area which in the opinion of the Health Officer is
required for any purposes connected with the fair, festival or pilgrimage and the owner
or the lessee of the land or building shall be entitled to such compensation for any
damage or expense incurred during the period as may be laid down by the local
authority.
Power of Director of Health Services

120. In case of an emergency including the outbreak of any notified communicable

disease and in case section 116 is not fully complied with by the local authority, the
Director of Health Service shall have the power to direct and take or require to be taken
or empower any person to take such measures as he shall deem necessary and the
expenses incurred thereby shall be recovered from the local authority under such terms
and conditions as prescribed by the Government.

Power of Government

121. The Government may, also by rules prescribed in this behalf, entrust the local
authorities to make other arrangement for sanitation ,water supply, compulsory
immunisation, inoculation etc., so as to empower the local authority to deal with
situations that may arise during the periods of fairs or festivals.
 75

CHAPTER – XI

HEALTH RESORTS, HOLIDAY CAMPS, SETTLEMENTS

AND LABOUR CAMPS

Notification

122. The Government or the local authority with the approval of the Government
may, subject to the provisions of this Act and Rules framed thereunder, declare for the
purpose of this Chapter any place or area as a health resort, holiday camp, settlement or
labour camp.
Licence

123. No person other than the Government or the local authority can run a holiday
camp, health resort, settlement or labour camp without obtaining written permission
and licence from the local authority.

Control of such notified places

124. Accommodation, water, sanitary conveniences, food hygiene and control,

collection and disposal of community wastes, restriction of visitors suffering from any
communicable disease, medical relief facilities and compulsory immunisation at such
notified places and the grant, issue and cancellation of licence and the charges made
from the visitors will be such as may be prescribed.

CHAPTER – XII

MISCELLANEOUS INSTITUTIONS

Registration and licensing

125. No person shall own and run a place of entertainment or recreation centre
without the written permission and licence of the local authority and the local authority
shall have the power to revoke or cancel the said licence for violation of any of the
terms and conditions of the licence or for infringement of any of the rules or bye-laws.

Power of entry

126. The Health Officer and the Public Health Engineer shall have the power to enter
and inspect any such place at any time with or without notice to the owner, manager or
keeper of such place and to give necessary direction for the rectification of defects and
deficiencies.
 76

Conditions for grant of licence etc.

127. The standards of sanitation of public waiting or halting rooms, cinemas,

theatres, music halls, public libraries and other places of public entertainments, the
provision for sleeping or seating accommodation and other condition for granting or
renewing such licences shall be such as may be prescribed.

Local authority to provide place for recreation, sports field,

pasture land, etc.

128. The local authority may, subject to the provisions of this Act and Rules framed
thereunder, provide as far as possible, ---

(1) Open spaces, parks, playgrounds, common swimming tanks and other
amenities for use and enjoyment of the people and may frame bye-laws regulating their
use;
(2) Let out any park or land for sporting fields and may permit erection of
tents, sheds or galleries on such terms and conditions as the local authority may
prescribe;
(3) Provide pasture lands for use of domestic cattle.

Acquisition of land and disposal

129. A local authority may purchase or take on lease or otherwise acquire land and
water areas for purposes of this Chapter and dispose of any disused and abandoned
park, playground or pasture or any water collection belonging to the local authority in
any manner the local authority may deem fit.
For purposes of this Chapter, 'Insects' includes mosquitoes, flies, fleas, lice,
mite, sandfly, tick and any other insect detrimental to health.

Competent authority

130. The Director or any local authority constituted under any Act shall be deemed
to be the "competent authority" to conduct anti-insect operations in accordance with the
rules that may be prescribed from time to time by the Government.

Duties of competent authorities

131. (1) Every competent authority shall take steps to eliminate places where the
insects are breeding or likely to breed and to control or destroy the insects.
(2) The Government or the local authority shall maintain special staff and
equipment for the purpose and such staff may have the right to enter upon any land or
any premises, house or room, after giving sufficient notice to the residents who shall
give all facilities to such men and inspecting officers.
 77

Insecticidal spraying

132. (1) The Government/or the local authority shall provide facilities of insecticidal
spraying of houses or shops and such places as may be considered necessary and on
payment of such charges prescribed from time to time.

(2) The Government or the local authority shall take measures, engineering or
otherwise or the prevention, control and removal of any cause or causes of breeding of
insects.
Duties and responsibilities of owners and occupiers

133. (1) Every owner or occupier of lands or premises shall take measures to prevent
the breeding of insects and when directed, such measures as may be specified by the
competent authority.

(2) No person shall put any structure or construction or any building or barrier
across any stream, channel or drain so as to obstruct the flow of water.

(3) No person shall put any embankment for roads or any other purpose which
is likely to interfere with the natural drainage of the area, and

(4) No person shall interfere with any work on land or any building already
undertaken by the Government or by the competent authority or by the owner under
the direction of the Government or the local authority for the purpose of preventing the
breeding of insects.

Power of local authority/Government

134. In the event of any person or persons failing to comply with the directions of
the competent authority or the Government in respect of any matter under this chapter,
the competent authority or the Government may itself execute the work and take
necessary measures and may realise either whole or a portion of the cost, incurred from
the person or persons concerned in such manner as the Government or the competent
authority may determine.

Information regarding any insect-borne disease in epidemic form

135. In the event of any outbreak of malaria and any other insect-borne disease in
epidemic form in any locality, the local authority shall immediately arrange for
remedial action and report the matter to the Director of Health Services who may
render to the local authority such assistance as may be deemed necessary.
 78

CHAPTER – XIII

BURIAL AND BURNING GROUNDS

Local authorities to provide burial and burning grounds

136. A local authority may, subject to such rules as may be prescribed in this behalf
and if so required by the Government shall provide a suitable place or places for
burying, burning or otherwise disposing of the dead bodies according to different
religious customs at reasonable distances from the inhabited areas. Two or more local
authorities may, and if so required by the Government, shall jointly provide burial or
burning grounds or other places for disposal of dead bodies.

Private burning and burial ground licensing of

137. A local authority may, subject to such terms and conditions as the local
authority may determine, grant licences for private burial and burning grounds, and the
issue, renewal and revocation of such licences, shall be subject to such rules as may be
prescribed.
Certification of death
138. The care-taker in charge of or the owner of a burning or burial ground or a
crematorium or a burial tower, shall not permit a dead body to be burnt or buried or
otherwise disposed therein except on the production of a certificate of death issued by a
registered medical practitioner or such a person in such manner as may be specified by
the bye-laws or rules.
Registration of deaths
139. The local authority, subject to the rules framed in this behalf, shall arrange for
proper registration of all dead bodies buried or burnt or otherwise disposed of.

Prohibition of use of other places

140. No person shall bury, burn or otherwise dispose of any dead body except in a
place which has been registered or provided under this chapter or the rules framed
thereunder.
Disposal of unclaimed bodies
141. A local authority may arrange for the disposal at its expense, of unclaimed dead
bodies or dead bodies of persons whose friends and relatives are too poor to meet the
expenses of burial or burning.

Government to control by rules

142. The Government may also restrict or control burials or the establishment or
maintenance of such grounds by such rules as may be prescribed in this behalf.
 79

CHAPTER – XIV

MISCELLANEOUS
Power to make rules

143. (1) The Government shall, in addition to the rule making powers conferred on
them by any other provision contained in this Act, have power subject to pre-
publication, to make rules generally 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: -
(i) the manner in which quorum of the meeting of the Board is to
be fixed and the mode of the transaction of business of the
meeting of the Board or Committees thereof;
(ii) the manner of filling casual vacancies among the members of
the Board or the Committee as the case may be, the travelling
and other allowances payable to such members;
(iii) the powers and functions of the Officers subordinate to the
Director of Health Services;
(iv) the advice or assistance to be given by officers of the
Government to local authorities for carrying out the purposes
of this Act;
(v) the manner in which the Director shall discharge or cause to be
discharged the functions entrusted to him or delegated by him,
as the case may be;
(vi) the procedure for registration and for renewal of registration of
private institutions and the forms to be used and fees to be
collected in connection therewith;
(vii) the manner of preferring appeals to the Government;
(viii) the manner in which private institutions are to be controlled or
regulated under the provisions of this Act;
(ix) the quality and quantity of water for drinking and domestic
purposes and for protection and for periodical examination
thereof;
(x) providing places for use by washermen and for the use of such
ghats;
(xi) regulating the supply of water for purposes referred to in
section 20;
(xii) location and construction of tube-wells for public or private
supply;
(xiii) providing necessary number of closed reservoirs for the use of
persons living beyond a distance of 100 yards from the supply
main;
 80

(xiv) making pipe connections from the supply main for the
purposes of feeding water to houses within such distance of
supply main on payment of such fees as may be specified;
(xv) for levy of water rate to be paid by local authority to a Joint
Water Board for supply of water;
(xvi) levy of water rate by local authorities and the manner of
expanding the proceedings thereof;
(xvii) providing meters in the premises to which water is supplied;
(xviii) levying hire charges for the meter;
(xix) provide bathing places, swimming pools etc., and licensing,
maintaining and closure of such bathing places or swimming
pools;
(xx) exercising the powers of the local authority with respect to the
constructing of water works and the arrangements for supply
of water;
(xxi) regulating diversion of water works, purchase of water works
or rights thereon and arrangements for protected supply of
water;
(xxii) settlement of disputes and difference between the Water Board
or between the local authorities inter se;
(xxiii) restriction of entry into houses occupied by patients suffering
from communicable disease before disinfection is carried out;
(xxiv) restriction of certain avocation by carriers and persons infected
with certain diseases;
(xxv) provision of certain works in regard to the affected premises
and restriction in regard to the disposal of dead bodies;
(xxvi) provisions regarding precautions to be taken for disinfection
and destruction of infected articles;
(xxvii) the records and registers to be kept by the local authorities with
regard to communicable and notifiable diseases;
(xxviii) provisions of diagnostic and laboratory facilities, staff,
medicine, disinfection, facilities for removal, association and
accommodation of patients;
(xxix) powers and duties of the Health Officers, vaccinators, etc.;
(xxx) the provisions regarding grant, renewal and cancellation of
licences to vaccinators and the collection of fees thereof;
(xxxi) the manner and procedure for vaccination, re-vaccination and
inoculation and the inspection of results thereof;
(xxxii) the forms, notices, memoranda and the other registers to be
maintained under this Act;
(xxxiii) supply, storage, sale and transit of vaccines;
(xxxiv) standards for discharge of sewage or affluents from septic
tanks, treated wastes, determination of sufficiency, of sewage
 81

treatment plant, hygienic collection and removal of night-soil,

offensive matters, scavenging, conservancy and disposal of
such matters and carcasses;
(xxxv) schemes for improvement or extension of sewerage or drainage
system and execution thereof;
(xxxvi) standards for water closets, pipes, ventilators, and flourishing
arrangements of water carriage system;
(xxxvii) house connection for drains and sewage standards of septic
tanks, latrines, urinals, sanitary conveniences and arrangements
to be made at specified places, areas or occasion;
(xxxviii) employment, registration and displaying of scavenging and
other establishments;
(xxxix) levy of fees or charges for any services rendered under the
provisions of this Act;
(xl) the standards of regulations that are to be observed in
constructing buildings or in making alterations or extension of
buildings and spacing sanitation and ventilation in and outside
thereof;
(xli) sanitary convenience in the building;
(xlii) giving of notices and the deposit of plans, specification, etc.;
(xliii) inspection of work, testing of drains and sewers and testing of
samples;
(xliv) relaxation of building regulations in appropriate cases;
(xlv) laying down standards for general sanitation of lodging houses,
eating houses, tea-shops, coffee houses, refreshment-rooms,
biscuit-factories, dairies and other such places where food
articles are kept for storage, sale or otherwise;
(xlvi) the powers and duties of competent authority under the Act;
(xlvii) the manner of conducting anti-insect and anti-larval measures;
(xlviii) regulations and procedure for registering of burial and burning
grounds, issue and cancellation of licences thereof and other
sanitary precautions to be taken with regard to the burial of
dead body or corpses;
(xlix) the manner in which appeals are to be filed from the orders
made under any of the provisions of this Act and the
authorities to whom such appeals are to be filed;
(l) the procedure in hearing such appeals by the appellate
authorities;
(li) fees or charges to be collected from individuals for issue of
licences or permits;
(lii) the fee to be given in respect of appeals or applications;
(liii) regulating the situation in which sanitary convenience for the
use of the public shall be constructed by a local authority;
 82

(liv) with reference to all matters expressly required or allowed by

this Act to be prescribed.

(3) Every rule made under this section shall be laid, as soon as may be after it is
made, before the Legislative Assembly of Puducherry while it is in session for a total
period of fourteen days which may be comprised in one session or in two successive
sessions, and if, before the expiry of the session in which it is so laid or the session
immediately following, the Legislative Assembly agrees in making any modification in
the rule or the Legislative Assembly agrees 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.

General power to make bye-laws

144. (1) A local authority may make bye-laws, not inconsistent with the provisions
of this Act or of any rule made thereunder:-
(a) for all matters, which are required or allowed by this Act to
be provided for bye-laws; and
(b) generally for carrying out all or any of the purposes of this
Act.
(2) Bye-laws made under this Act may provide that a breach of any of them
shall be punishable with fine which may extend to fifty rupees and in the case of a
continuing breach with fine which may extend to fifteen rupees for every day during
which the breach continues after conviction for the first breach.

Provisions with respect to bye-laws

145. (1) Any power to make bye-laws conferred by this Act is conferred subject to
the condition of the bye-laws being made after previous publication.
(2) No bye-laws shall take effect until the same has been approved by the
Government and published in the Official Gazette.
(3) The Government in approving a bye-law may make any change therein
which appears to it to be necessary.
(4) The Government may, after previous publication of its intention, cancel and
bye-law which it has approved, and thereupon, the bye-law shall cease to have effect.

Bye-laws to be available for inspection

146. A copy of all bye-laws made under this Act shall be kept at the office of the local
authority and shall, during office hours, be open free of charge to inspection by any
inhabitant of the local area.
Service of notices
147. When any notice is required to be given under this Act or by any rule or bye-
law made thereunder to any person, the notice shall be given –
 83

(a) by giving or tendering it to such person, or

(b) if such person is not found, by leaving it at his known place of abode or
business, or by giving or tendering it to some adult member or servant of his family, or
(c) if such person does not reside in the local area and his address elsewhere is
known, by sending the same to him by registered post, or
(d) if none of the means aforesaid is available, by affixing the notice in some
conspicuous part of such place of abode or business.

Publication of notices and orders

148. Every notice or order which by or under this Act is to be given or served as a
public notice or order or as a notice which is not required to be given to any individual
specified therein shall be deemed to be sufficiently given or served if a copy of such
notice or order is affixed on the notice board of the office of the local authority or in
such other public place or is published in such local newspaper or in such other manner
as the local authority may direct.

Power of entry and inspection

149. The executive authority or any person authorised by him in this behalf may
enter into or on any building or land with or without assistants or workmen in order to
make any inquiry, inspection, test, examination, survey, measurement or valuation or
for the purpose of lawfully placing or removing pipes or meters or to execute any other
work which is authorised by the provisions of this Act or of any rule or bye-law made
thereunder or which it is necessary for any of the purposes of this Act or in pursuance
of any of the said provisions to make or execute:

Provided that ---

(a) except when it is, in this Act, otherwise expressly provided,
no such entry shall be made between sunset and sunrise;
(b) except when it is, in this Act, otherwise expressly provided,
no dwelling house and no part of a public building used as a
dwelling place shall be entered into without the consent of
the occupier thereof unless the said occupier has received at
least six hours previous notice of the intention to make such
entry;
(c) sufficient notice shall be given in every case even when any
premises may otherwise be entered without notice, to enable
the inmates of any apartment appropriated to women to
move to some part of the premises where their privacy may
be preserved;
(d) due regard shall be paid so far as may be compatible with
the exigencies of the purpose of the entry to the social and
religious usages of the occupants of the premises.
 84

Power to give direction

150. For the purpose of carrying into effect any provision of this Act, the
Government may, in writing, give to any local authority such directions as it thinks fit
and it shall be the duty of the local authority to comply therewith.

Delegation
151. The Government may, by notification and subject to such restrictions,
limitations and conditions as may be specified therein, authorise any person to exercise
any one or more of the powers conferred on it by this Act:
Provided that nothing contained in this section shall apply to any power of the
Government to make rules or regulations or to issue directions.

Employees of local authorities to be public servants

152. Every officer or other person employed by a local authority in connection with
the public health services under this Act shall be deemed to be public servant within the
meaning of section 21 of the Indian Penal Code.

Protection of action taken under Act

153. No suit, prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done under this Act or any rule
or bye-law made thereunder.
Effect of Act
154. The provisions of this Act shall, save as otherwise expressly provided, have
effect notwithstanding anything inconsistent therewith contained in any other law; and
if any provision relating to public health contained in any other law is inconsistent with
any provision of this Act the latter shall prevail and the former shall, to the extent of the
inconsistency, be void.
Removal of difficulties
155. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, as occasion requires by order do anything not inconsistent with this
Act which appears to it to be necessary or expedient for the purpose of removing the
difficulty:
Provided that every order made under this section shall be laid before the
Legislature.
Repeal
156. (1) Any corresponding law inconsistent with the provisions of this Act shall
stand repealed.
(2) Notwithstanding such repeal, any notification, rule, regulation, bye-law,
order or notice issued or any appointment or declaration made or any licence,
permission or exemption granted or any other thing done or any other action taken
under the repealed enactment shall, so far as it is not inconsistent with the provisions of
this Act, be deemed to have been issued, made, granted, done or taken under the
corresponding provision of this Act.
 85

Penalties
157. (1) Any person who contravenes or fails to comply with any provision of this
Act or of any rule made thereunder or of any notice or order, or direction issued under
any of the said provision shall be punishable for the first offence with fine which may
extend to rupees two hundred and for a second or any subsequent offence with fine
which may extend to rupees four hundred.
(2) Any person, after having been convicted for any offence under sub-section
(1) continues to commit such offence, he shall be punished for each day after the first,
during which he continues so to offend with fine which may extend to rupees twenty-
five for every such day.
______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.5 OF 1974

No doubt certain provisions do exist in some of the Ex-French Decrees and

Arretes for the protection and preservation of Public Health. Certain powers in this
regard were also entrusted with the Municipality as per the Municipal Decree of 1880.
The Government has already taken action for brining comprehensive legislation with
regard to the administration of municipalities and commune panchayats. The same is
the case with regard to public health. The existing provisions are found to be
inadequate and insufficient especially in the changed set up. Hence it is considered
necessary to have a separate and consolidated legislation for the advancement and
administration of public health in the Union territory more or less on the lines of similar
legislation existing in other States like Tamil Nadu and also based on a model Bill
circulated by the Government of India as early as 1963. The proposed legislation
inter-alia deals with the constitution of Public health and the powers that are to be
vested in the Government and other local bodies for proper maintenance of water
supply, sanitary conveniences and other such allied matters. It also contains provisions
for the prevention, notification and treatment of communicable diseases, food sanitation
and the precautions to be taken by appropriate authorities with respect to the sanitation
in ordinary circumstances and also in connection with fairs, festivals etc. It is felt that
only with such statutory backing the Government can clothe itself with sufficient
powers for maintaining public health in all its respects. The Bill seeks to achieve the
objects referred to above.

________
 86

THE PUDUCHERRY HOUSING BOARD ACT, 1973

(No.7 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER – I
PRELIMINARY

[Link] title, extent and commencement

2. Definitions
CHAPTER – II
CONSTITUTION AND WORKING OF THE BOARD

3. Establishment and constitution of the Board

4. Appointment of the Chairman and Members to be notified
5. Term of office and conditions of service of the Chairman and members of the Board
6. Disqualifications for appointment as a member of the Board
7. Power of Chairman
8. Appointment of an acting Chairman
9. Removal of Chairman and other non-official members
10. Staff of the Board
11. Conditions of service of the staff of the Board
12. Control and delegation by Chairman
13. Housing unit
13A. No disqualification in certain cases

CHAPTER – III
CONDUCT OF BUSINESS OF THE BOARD AND ITS COMMITTEES

14. Meetings of the Board

15. Temporary association of persons with the Board for particular purposes
16. Appointment and functions of Committees
17. Prohibition to take part proceedings
18. Acts of the Board or Committee not to be invalidated by vacancy, etc.
 87

CHAPTER – IV
POWERS OF BOARD AND CHAIRMAN TO INCUR EXPENDITURE ON SCHEMES
AND ENTER INTO CONTRACTS

19. Powers of Board and Chairman to incur expenditure

20. Powers of Board and Chairman to approve estimates
21. Emergency powers of Chairman
22. Power to make and perform contracts
23. Agreements and security deposits
24. Further provisions as to the execution of contracts and agreements
25. Contract made in contravention of Act, etc., not binding on Board
26. Registration of instruments

CHAPTER – V
HOUSING OR IMPROVEMENT SCHEMES

27. Power of the Board to undertake housing or improvement schemes and incur
expenditure
28. Power of Government to transfer any land belonging to or vested in it or acquired
under the Slum Areas (Improvement and Clearance) Act, 1956
29. When housing or improvement schemes may be made by the Board
30. Matters to be provided by housing or improvement schemes
31. Types of housing or improvement schemes
32. House accommodation scheme
33. Rebuilding scheme
34. Rehousing or rehabilitation scheme
35. City or town or village expansion scheme
36. Street scheme
37. Deferred street scheme
38. Land development scheme
39. General Improvement scheme
40. Preparation, publication and transmission of notice as to housing or improvement
schemes and supply of documents to applicants
41. Transmission to the Board of representation by the concerned local authority or
planning authority as to housing or improvement scheme
42. Notice regarding proposal to recover betterment fee
43. Furnishing of copies or extracts from the assessment book of the local authority or
planning authority
44. Abandonment, modification or sanction of a housing or improvement scheme
45. Publication of sanction of housing or improvement scheme
46. The Board to execute housing or improvement scheme soon after sanction
47. Alteration of a housing or improvement scheme after sanction
 88

48. Transfer to Board for purposes of improvement scheme building or land vested in
local authority or planning authority
49. Transfer of private street or square to Board for purpose of housing or
improvement scheme
50. Repairs of streets vested in the Board
51. Transferring streets laid out or altered and open spaces provided by the Board
under a housing or an improvement scheme
52. Prevention or restriction of traffic in street vested in the Board
53. Provision of facilities when work is executed by the Board in public streets
vested in it
54. Power of the Board to turn or close public street or square vested in it
55. Power of the Board to retain lanes not meant for vehicular traffic
56. Other duties of the Board
57. Supervision and centage charges
58. Power of Government to call for the records of the Board and to modify, annual,
etc., of housing or improvement schemes
59. Power to exempt

CHAPTER – VI
ACQUISITION AND DISPOSAL OF LAND

60. Power to acquire land under the Land Acquisition Act, 1894
61. Power to purchase or lease by agreement
62. Power to dispose of land

CHAPTER – VII
LEVY, ASSESSMENT AND RECOVERY OF BETTERMENT FEE

63. Payment of betterment fee

64. Assessment of betterment fee by the Board and notice to persons liable to such fee
65. Board to give notice to persons liable to payment of betterment fees
66. Recovery of betterment fees
67. Levy of betterment fee not bar to acquisition

CHAPTER – VIII
POWER TO EVICT PERSONS FROM BOARD PREMISES

68. Power to evict certain persons from Board premises

69. Power to recover rent or damage as arrears of land revenue
70. Appeal
71. Rent to be recovered from deductions from salary or wages in certain cases
72. Bar of jurisdiction of courts
 89

CHAPTER – IX
FINANCE

73. Funds of the Board

74. Power of the Board to borrow and lend
75. Issue of debentures
76. Payments to survivors of joint payees
77. Receipt by joint holder for interest or dividend
78. Priority of payments for interest and re-payment of loans
79. Repayment of loans
80. Establishment and maintenance of sinking fund
81. Power to discontinue payments into sinking fund.
82. Investment of sinking fund
83. Application of sinking fund
84. Annual examination of sinking fund
85. Estimates of income and expenditure to be laid before the Board
86. Sanction of estimates
87. Approval of Government to estimates
88. Supplementary estimate
89. Adherence to estimate and maintenance of closing balance
90. Keeping of accounts
91. Change from one account to the other
92. Budget of the Board
93. Accounts and Audit
94. Annual reports
CHAPTER - X
PENALTIES AND PROCEDURE

95. Penalty for removing fence, etc., in street

96. Penalty for building within street alignment or building line without permission
97. Penalty for failure to comply with requisition made by auditor
98. Penalty for obstructing contractor or removing mark
99. Penalty for breach of the provisions of the Act, etc.
100. Compensation to be paid by offenders for damage caused by them
101. Composition of offences
102. Fine realised to be paid to Board
103. Cognizance of offence under this Act
104. Duty of police officers
105. Arrest of offenders
106. Powers of Chairman as to institution, etc., of legal proceedings and obtaining legal
advice
107. Protection of action taken in good faith
108. Notice of suit against Board etc.
 90

109. Proof of consent, etc., of Board or Chairman or officer or servant of the Board
110. Power of Chairman to direct removal of unauthorised erections, etc.,
within street alignment, etc.
111. General power of the Board to pay compensation
112. Public notice how to be made known
113. Publication in leading daily newspapers
114. Stamping signature on notices or bills
115. Service how to be effected
116. Power to make surveys, or contribute towards their cost.
117. Power of entry
CHATER – XI
MISCELLANEOUS

118. Powers of the Board for facilitating movement of the population

119. Members and Officers to be public servants
120. Sanction of prosecution
121. Board and Chairman to exercise powers and functions of local authority
122. Supply of documents, etc., to Government
123. Submission of administration report to Government
124. Power of Government to give directions to the Board and local authorities
125. Supersession of the Board
126. Dissolution of the Board
127. The Board to be a local authority under Central Act 1 of 1894 and Central
Act 9 of 1914.
128. Finality of orders
129. Power to make rules
130. Power to make regulations
131. Power to remove difficulties
132. Amendment of section 11 of Act 13 of 1970

______
 91

THE PUDUCHERRY HOUSING BOARD ACT, 1973

(No.7 of 1974)
(25-7-1974)
AN ACT

to provide for the execution of housing and improvement schemes, for the
establishment of a Housing Board and for certain other matters connected
therewith.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-

fourth Year of the Republic of India as follows: -

CHAPTER – I

PRELIMINARY
Short title, extent and commencement

1. (1) This Act may be called the Puducherry Housing Board Act, 1973.

(2) It extends to the whole of the Union territory of Puducherry.

+(3) It shall come into force on such date as the Government may, by notification in
the Official Gazette, appoint:

Provided that different dates may be appointed for different regions of the
Union territory of Puducherry and any reference in this Act to the commencement of
this Act shall, in relation to any region, means the date on which this Act comes into
force in that region.
Definitions
2. In this Act, unless the context otherwise requires, --
(1) "betterment fee" means the fee declared to be payable under section 63 in
respect of an increase in the value of land resulting from the execution of a housing or
improvement scheme;
(2) "Board" means the Puducherry Housing Board established under section 3;
(3) "Board premises" means any premises belonging to, or vesting in, the Board or
taken on lease by the Board or any premises which is entrusted to, or in the possession
or control of, the Board for the purposes of this Act;
(4) "Chairman" means the Chairman of the Board;

+ This Act came into force w.e.f 26-05-1975 vide Notification published in EG No. 49 dt. 21.05.1975.
 92

(5) "Committee" means any committee appointed under section 16;

(6) "competent authority" means any person or authority authorised by the
Government, by notification in the Official Gazette to perform the functions of a
competent authority under Chapter VIII;
(7) "Government" means the Administrator appointed by the President under
article 239 of the Constitution;
(8) "housing or improvement scheme" means a scheme framed in accordance
with the provisions of Chapter V;
(9) "land" includes benefits to arise out of land, and things attached to the earth
or permanently fastened to anything attached to the earth;
(10) "member" means the member of the Board;
(11) "Planning Authority" means a Planning Authority constituted under the
Puducherry Town and Country Planning Act, 1969;
(12) "premises" means any land or building or part of a building and includes-

(i) the garden, grounds and outhouses, if any, appertaining to such

building or part of a building; and
(ii) any fittings affixed to such building or part of a building for the more
beneficial enjoyment thereof;

(13) "region" means any one of the regions known as Puducherry, Karaikal, Mahe
or Yanam of the Union territory;
(14) "regulations" means the regulations made under this Act;
(15) "rules" means the rules made under this Act;
(16) "Town Planning Act" means the Puducherry Town and Country Planning
Act, 1969;
(17) "Union territory" means the Union territory of Puducherry.

CHAPTER – II

CONSTITUTION AND WORKING OF THE BOARD

Establishment and constitution of the Board

3. (1) With effect from such date as the Government may by notification in the
Official Gazette specify in this behalf, there shall be established for the purpose of this
Act, a Board to be called the Puducherry Housing 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.
 93

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

(a) a Chairman to be appointed by the Government;
(b) the Secretary to Government incharge of Housing;
(c) the Secretary to Government, Finance Department;
(d) the District Collector;
(e) the Director of Public Works Department;
(f) the Director of Health and Family Planning Services;
(g) the Senior Town Planner;
(h) three non-official members to be appointed by the Government, one of
whom shall be an Engineer or Architect who possesses experience in
housing and who is not in the employment of the Government or of a
local authority or of any corporation owned or controlled by the
Government; and one shall be a resident of any one of the outlying
areas of Karaikal, Mahe or Yanam.

Appointment of the Chairman and Members to be notified

4. The appointment of Chairman and non-official members shall be notified in the
Official Gazette.

Term of office and conditions of service of the Chairman

and members of the Board
5. (1) The term of office and the conditions of service of the Chairman and
members shall be such as may be prescribed by rules and they shall be entitled to
receive such salary or allowances as may be fixed by the Government.
(2) The Chairman or any member may resign his membership of the Board by
giving notice in writing to the Government and on such resignation being accepted by
the Government, he shall cease to be a member.
(3) Any vacancy created in the Board shall be filed by fresh appointment by the
Government.
Disqualifications for appointment as a member of the Board
6. (1) A person shall be disqualified for being appointed as, and for being a
member of the Board, if he –
(a) has been convicted by a criminal court for an offence involving moral
turpitude, unless such conviction has been set aside;
(b) is an undischarged insolvent;
(c) if of unsound mind;
(d) is an officer or servant under the Board;
(e) has directly or indirectly, by himself or by any partner, employer or
employee, any share or interest in any contract or employment with,
by or on behalf of, the Board;
(f) is a director or a secretary, manager, or other officer of any
incorporated company which has any share or interest in any contract
or employment with, by or on behalf of, the Board;
 94

(2) A person shall not, however, be disqualified under clause (e) or clause (f) of
sub-section (1) or be deemed to have any share or interest in any contract or
employment within the meaning of those clauses, by reason only of his, or the
incorporated company of which he is a director, secretary, manager or other officer,
having a share or interest in ---

(i) any sale, purchase, lease or exchange of immovable property or

any agreement for the same;
(ii) any agreement for the loan of money or any security for the
payment of money only;
(iii) any newspaper in which any advertisement relating to the
affairs of the Board is inserted;
(iv) the occasional sale to the Board, to a value not exceeding two
thousand rupees in any one year, of any article in which he or
the incorporated company regularly trades.

(3) A person shall not also be disqualified under clause (e) or clause (f) of
sub-section (1) or be deemed to have any share or interest in any incorporated company
which has any share or interest in any contract or employment with, by or on behalf of,
the Board, by reason only of is being a share-holder of such company:
Provided that such person discloses to the Government the nature and extent
of the shares held by him.
Explanation:- For the purposes of clause (d) of sub-section (1), the Chairman
shall not be deemed to be an officer or other employee under the Board.

Power of Chairman
7. The Chairman shall not undertake any work unconnected with his office without
the previous sanction of the Government.

Appointment of an acting Chairman

8. Whenever there is a temporary vacancy in the office of the Chairman or when the
Chairman is on leave, the Government may appoint a person to act as Chairman during
the period of such vacancy or leave, as the case may be, and shall pay to such person
such salary and allowances as may be fixed by the Government and the person so
appointed shall be deemed, for purposes of this Act, to be the Chairman.
Removal of Chairman and other non-official members
9. (1) If at any time it appears to the Government that Chairman has shown
himself to be unsuitable for his office, or has been guilty of any misconduct or neglect
which renders his removal expedient, it may, by notification in the Official Gazette,
remove the Chairman from office.
(2) The Government may, by notification in the Official Gazette, remove any
non-official member from office –
 95

(a) if he has, without the permission of the Board, been absent from the
meetings of the Board for any period exceeding three consecutive months; or

(b) if he, being a legal practitioner, acts or appears on behalf of any person
other than the Board in any civil, criminal or other legal proceedings in which the Board
is interested, either as a party or otherwise; or

(c) if he has, in the opinion of the Government, contravened the provisions

of section 17; or

(d) if he, in the opinion of the Government, is unsuitable or has become

incapable of acting as a member or has so abused his position as a member as to render
his continuance as such member detrimental to the public interest.

(3) A non-official member removed under the provisions of clause (a) or clause
(b) of sub-section (2), shall be disqualified for appointment as a member for such period
as may be prescribed by rules.

(4) A non-official member removed under clause (d) of sub-section (2) shall not
be eligible for reappointment until he is declared by an order of the Government to be
no longer ineligible.
Staff of the Board

10. Subject to rules made in this behalf, the Board may appoint such officers and
other employees as may be necessary for the efficient performance of its functions and
may determine their designations and grades.

Conditions of service of the staff of the Board

11. The officers and other employees of the Board shall be entitled to receive such
salaries and allowances, as may be fixed by the Board and shall be governed by such
other terms and conditions of service as may be prescribed by regulations.

Control and delegation by Chairman

12. The Chairman shall exercise supervision and control over the acts and
proceedings of all officers and other employees of the Board, and may subject to rules
made in this behalf, by general or special order, delegate to any officer of the Board, any
of his powers, duties or functions under this Act or the rules or regulations made
thereunder other than those specified in sections 14 and 85.
 96

Housing unit

13. (1) The Board may, whenever, it is necessary or expedient so to do, establish a
housing unit in such area as may be specified by it by notification in the Official Gazette
for the efficient performance of its functions in that area.

(2) The housing unit shall form part of the establishment of the Board and shall
consist of such officers and other employees as may be considered necessary by the
Board.

(3) The housing unit shall be in charge of an officer who shall be under the
administrative control of the Chairman and shall also exercise such powers and
perform such duties and functions as may be delegated to him by the Chairman under
section 12.
No disqualification in certain cases

*[13.A. No person shall be disqualified for being chosen as, or for being a member of
Legislative Assembly by virtue only of the fact that he is a Chairman or a member of the
Board].

CHAPTER – III

CONDUCT OF BUSINESS OF THE BOARD AND ITS COMMITTEES

Meetings of the Board

14. (1) The Board shall meet at such times and places and shall, subject to the
provisions of sub-sections (2) and (3), observe such rules of procedure in regard to
transaction of business at its meetings (including the quorum at meetings) as may be
prescribed by regulations:

Provided that the Board shall meet at least once in every month:-

(2) The Chairman or in his absence such other member as may be chosen by the
members present from among themselves shall preside at a meeting of the Board.

* Substituted vide Act No.12 of 1980 published in the Extraordinary Gazette of Puducherry No.5 dated 9.1.81
and these have come into force w.e.f 23.12.1980.
 97

(3) All questions at any meeting of the Board shall be decided by a majority of
the votes of the members present and voting and in the case of an equality of votes, the
Chairman, or in his absence the person presiding, shall have a second or casting vote.

(4) The Board shall, within seven days of every meeting, cause a copy of the
proceedings of the meeting to be forwarded to the Department of the Government in
charge of housing.

Temporary association of persons with the Board for particular purposes

15. (1) The Board may associate with itself in such manner and for such purpose as
may be prescribed by rules, any person whose assistance or advice it may desire for the
purpose of carrying into effect any of the provisions of this Act:

Provided that the number of persons so associated shall not be more than five.

(2) A person associated with the Board under sub-section (1) for any purpose
shall have the right to take part in the discussions of the Board relevant to that purpose,
but shall not have the right to vote and shall not be named as a member for any other
purpose.

(3) The Government may, by order, depute one or more officers of the
Government to attend any meeting of the Board and to take part in the discussions of
the Board, but such officer or officers shall not have the right to vote.

Appointment and functions of Committees

16. (1) The Board may, from time to time, appoint Committees consisting of such
member of persons as it may think fit for the purpose of discharging such duties or
performing such functions, and on such terms and conditions as may be prescribed by
regulations.

(2) The Chairman or such other person as he may nominate in this behalf shall
be the President of the Committee and the Committee shall observe such rules of
procedure in regard to transactions of business at its meetings as may be prescribed by
regulations.

(3) All proceedings of the Committee shall be subject to confirmation by the

Board.
 98

Prohibition to take part proceedings

17. Save as otherwise provided by rules, no member of the Board or of a Committee

or any person associated with the Board shall vote or otherwise take part in any
proceeding of the Board or Committee relating to a matter in which he is personally
interested.

Acts of the Board or Committee not to be invalidated by vacancy, etc.

18. No act done or proceeding taken under this Act by the Board or any Committee
shall be invalidated merely on the ground –
(a) of any vacancy or defect in the constitution of the Board or of the
Committee; or
(b) of any defect or irregularity in the appointment of a person acting as a
member thereof; or
(c) of any defect or irregularity in such act or proceeding not affecting the
merits of the case.
CHAPTER – IV

POWERS OF BOARD AND CHAIRMAN TO INCUR

EXPENDITURE ON SCHEMES AND ENTER INTO CONTRACTS

Powers of Board and Chairman to incur expenditure

19. Subject to budget provision and availability of funds, expenditure may be

incurred on any single work or scheme for carrying out any of the purposes of this Act –
(a) by the Chairman, if such expenditure does not exceed fifty thousand
rupees;
(b) by the Board, in other cases:

Provided that the Board shall not, without the previous approval of the
Government, incur any such expenditure exceeding ten lakhs of rupees:
Provided further that the Chairman shall report the expenditure incurred by
him under this section to the Board at its next meeting for ratification.

Powers of Board and Chairman to approve estimates

20. The Board or the Chairman may accord approval to estimates for incurring
expenditure on any work or scheme for carrying out any of the purposes of this Act
subject to the like restrictions and conditions imposed on the Board or the Chairman, as
the case may be, by section 19.
 99

Emergency powers of Chairman

21. The Chairman may, in cases of emergency, direct the execution of any work or
the doing of any act which requires the sanction of the Board and the immediate
execution or doing of which is, in his opinion, necessary for the service or safety of the
public and may also direct that the expenses of executing the work or of doing the act
shall be paid from the funds of the Board.

Provided that –
(a) he shall not act under this section in contravention of any direction of the
Board or the Government prohibiting the execution of any particular work or the doing
of any particular act;
(b) he shall report the action taken by him under this section and the reasons
therefor to the Board at its next meeting and shall also submit a copy of his report to the
Government and the Board or the Government may issue such directions as it may
deem fit on such report.
Power to make and perform contracts

22. The Board may enter into and perform all such contracts as it may consider
necessary or expedient for carrying out the purposes of this Act.

Agreements and security deposits

23. (1) Every contract shall be made on behalf of the Board by the Chairman or any
officer of the Board authorised in writing by the Board in this behalf.
(2) The Chairman shall take sufficient security deposit for the due performance
of the contract from every person with whom the contract is entered into.
(3) Written agreements shall be executed for all contracts, the value of which
exceeds five hundred rupees.
(4) Every contract made under sub-section (1), the value of which exceeds ten
thousand rupees, shall be reported to the Board at its next meeting.

Further provisions as to the execution of contracts and agreements

24. Subject to the provisions of sections 22 and 23, the contracts or agreements shall
be made or executed in accordance with the rules made in that behalf.

Contract made in contravention of Act, etc., not binding on Board

25. A contract or agreement made or executed in contravention of the provisions of

this Act or the rules or regulations made thereunder shall not be binding on the Board.
 100

Registration of instruments

26. (1) Notwithstanding anything contained in the Registration Act, 1908, it shall
not be necessary for the Chairman or an officer of the Board referred to in sub-section
(1) of section 23 to appear in person or by agent at any registration office in any
proceeding connected with the registration of any instrument executed by him in his
official capacity or to sign as provided in section 58 of that Act.
(2) Where any instrument is so executed, the registering officer to whom such
instrument is presented for registration may, if he thinks fit, refer to such Chairman or
any officer of the Board for information respecting the same and shall, on being satisfied
of the execution thereof, register, the instrument.

CHAPTER – V

HOUSING OR IMPROVEMENT SCHEMES

Power of the Board to undertake housing or improvement schemes
and incur expenditure

27. (1) Subject to the provisions of this Act, the Board may, from time to time, incur
expenditure and undertake works for the framing and execution of such housing or
improvement schemes as it may consider necessary.
(2) The Government may, on such terms and conditions as may be agreed upon
between the Government and the Board, transfer to the Board the execution of any
housing or improvement scheme not provided for by this Act, and the Board shall
thereupon undertake the execution of such scheme as if it had been provided for by this
Act.
(3) The Board may, on such terms and conditions as may be agreed upon,
between the Board and the local authority or planning authority as the case may be,
take over for execution any housing or improvement scheme undertaken by a local
authority or planning authority and the Board shall execute such scheme as if it had
been provided for by this Act.

Power of Government to transfer any land belonging to or vested in it or acquired

under the Slum Areas (Improvement and Clearance) Act, 1956
28. Whenever the Government consider it expedient or necessary, for the purpose of
clearance or improvement of any slum area, to transfer any land in such area belonging
to, or vested in it, or acquired under the provisions of the Slum Areas (Improvement
and Clearance) Act, 1956, it may do so on such terms and conditions as may be agreed
upon between the Government and the Board and direct the Board to undertake the
clearance or improvement of that area and to frame and execute such housing or
improvement scheme under this Act as the Government may specify and the Board
shall thereupon undertake the same for execution as if it has been provided for by this
Act.
 101

When housing or improvement schemes may be made by the Board

29. (1) A housing or improvement scheme under this Act may be made by the
Board of its own motion, or at the instance of the Government or by any local authority.
(2) Where any local authority requests the Board to execute any housing or
improvement scheme, the Board shall do so only if it is satisfied that, --

(a) the funds at its disposal are sufficient to execute the scheme; and
(b) the scheme is necessary and capable of being executed.

(3) Where any local authority is aggrieved by the decision of the Board not to
execute its scheme, it may appeal to the Government which may pass such order on
appeal as it may think fit and every such order passed by the Government shall be
binding on the Board.

Matters to be provided by housing or improvement schemes

30. Notwithstanding anything contained in any other law for the time being in force,
a housing or improvement scheme may provide for all or any of the following matters,
namely: -
(a) the acquisition by purchase, exchange, or otherwise of any property
necessary for or affected by the execution of the scheme;
(b) the laying or re-laying out of any land comprised in the scheme;
(c) the distribution or redistribution of sites belonging to owners of the
property comprised in the scheme;
(d) the closure or demolition of dwellings or portions of dwellings unfit for
human habitation;
(e) the demolition of obstructive buildings or portions of buildings;
(f) the construction and reconstruction of buildings;
(g) the sale, lease or exchange of any property comprised in the scheme;
(h) the construction and alteration of roads, streets, back lanes, bridges,
culverts and causeways;
(i) the draining, water-supply and lighting of the streets included in the
scheme;
(j) the provision of roads, parks, playing fields, and open spaces for the
benefit of any area comprised in the scheme or any adjoining area, and the enlargement
of existing parks, playing fields, open spaces and approaches;
(k) the provision of sanitary arrangements required for the area comprised in
the scheme including the conservation of and prevention of injury or contamination to
rivers or other sources and means of water supply;
(l) the provision of accommodation for any class of inhabitants;
(m) the advance of money for the purposes of the scheme;
(n) the provision of facilities for communication and transports;
 102

(o) the collection of such information and statistics as may be necessary for the
purposes of this Act;
(p) the reclamation or reservation of lands for markets, gardens, playing fields
and afforestation;
(q) the provision of schools, parks, swimming pools, restaurants, shops,
markets, fuel depots, laundries, hair dressing saloons and other amenities in the
scheme; and
(r) any other matter for which, in the opinion of the Government, it is
necessary or expedient to provide for house accommodation or for the improvement of
any area comprised in the scheme or such other area as the Government may, by
notification in the Official Gazette, declare to be an area surrounding or adjoining to the
area comprised in the scheme.

Types of housing or improvement schemes

31. Any housing or improvement scheme shall be of one of the following types, or
combination of any two or more such types or of any special features thereof, that is to
say –
(a) a house accommodation scheme;
(b) a rebuilding scheme;
(c) a rehousing or rehabilitation scheme;
(d) a city or town or village expansion scheme;
(e) a street scheme;
(f) a deferred street scheme;
(g) a land development scheme; and
(h) a general improvement scheme.

House accommodation scheme

32. Whenever the Board is of opinion that it is expedient or necessary to meet the
need for housing accommodation in any area, the Board may frame a house
accommodation scheme for that area, –

(a) specifying the lay-out of the area where houses will be constructed;
(b) providing for roads, streets, drainage, water supply, street lighting and other
amenities;
(c) providing for the construction of houses and the disposal thereof by sale or by
lease or on hire-purchase basis.
Rebuilding scheme
33. (1) Whenever it appears to the Board that the circumstances specified in clause (a)
or clause (b) of section 39 exist in any area and that having regard to the comparative
value of the building in such area and of the sites on which they are erected, the most
satisfactory method of dealing with the area or any part thereof is to frame a rebuilding
scheme, the Board may frame a rebuilding scheme for the whole or any part of that area
in accordance with the provisions of this section.
 103

(2) A rebuilding scheme may provide for, --

(a) the reservation of roads, street, lanes and open spaces and the enlargement
of the existing roads, streets, lanes and open spaces to such extent as may be necessary
for the purpose of the scheme;
(b) the re-laying out of the sites of the area upon roads, streets, lanes and open
spaces so reserved or enlarged.
(c) the payment of compensation in respect of any such reservation or
enlargement and the formation of roads, streets, lanes and open spaces so reserved or
enlarged;
(d) the reconstruction, alteration or demolition of the existing buildings and
their appurtenances by the owners or by the Board in default of the owners, and the
erection of buildings in accordance with the scheme by the said owners, or by the Board
in default of the owners, upon the sites as defined under the scheme;
(e) the advances to the owners, upon such terms and conditions as to interest,
sinking fund, and other matters as may be provided under the scheme, of such sums as
may be necessary to assist them to reconstruct or alter existing buildings or to erect new
buildings in accordance with the scheme; and
(f) the acquisition by the Board of any site or building comprised in the area
included in the scheme.
Rehousing or rehabilitation scheme
34. Whenever the Board is of opinion that it is necessary for persons who –

(a) are displaced by the execution of any housing or improvement scheme; or

(b) are likely to be displaced by the execution of any housing or improvement
scheme which it is intended to frame under this Act; or
(c) are surplus in any scheme area, the Board may frame a re-housing scheme
for the construction, maintenance and management of such number of dwelling houses
and shops as may be required, or may frame a rehabilitation scheme for providing such
number of open plots with roads, streets and open spaces as may be necessary.

City or town or village expansion scheme

35. (1) Whenever the Board is of opinion that it is expedient to control and provide for
the future expansion or development of a city, town or village, the Board may frame an
expansion scheme and specify the time-limit for the execution of such scheme.
(2) The expansion scheme may be framed in respect of an area which is wholly
within or wholly outside the limits of city, town or village or in respect of an area which
lies partly within and partly outside the city, town or village.
(3) Such scheme shall specify the proposed layout of the area to be developed and
the purposes for which particular portions thereof are to be utilised.
 104

(4) After any such scheme has come into force, no person shall, without the
previous permission of the Board, erect, re-erect, add to, or alter any building or wall
within the area comprised in the scheme.
(5) Where the Board refuses to grant permission to any person to erect, re-erect,
add to, or alter any building or wall on his land in the area aforesaid, and does not
proceed to acquire such land within one year from the date of such refusal, the Board
shall pay reasonable compensation to such person for any damage sustained by him in
consequence of such refusal.
Street scheme
36. (1) Whenever the Board is of opinion that for the purpose of –

(a) providing building sites, or

(b) remedying defective ventilation, or
(c) creating new or improving existing means of communication and facilities
for traffic, or
(d) affording better facilities for conservancy, it is expedient to lay out new
streets or alter existing streets (including bridges, causeways and culverts) in any area,
the Board may frame a street scheme for such area.

(2) A street scheme may, within the limits of the area comprised in the scheme,
provide for the following matters, namely: -

(a) the acquisition of any land which, in the opinion of the Board, is necessary
for the street scheme;
(b) the re-laying out of all or any of the lands so acquired including the
construction and reconstruction of buildings, by the Board or by persons authorised by
the Board in that behalf and laying out, construction and alteration of streets and
thoroughfares;
(c) the draining, water supply and lighting of streets and thoroughfares so laid
out, constructed or altered;
(d) the raising, lowering, or reclamation of any land vested in, or to be acquired
by, the Board for the purposes of the scheme;
(e) the provision of open spaces for the better ventilation of the area comprised
in the scheme; and
(f) the acquisition of any land adjoining any street, thoroughfares, or open
space to be formed under the scheme.
Deferred street scheme
37. (1) Whenever the Board is of opinion that it is necessary to provide for the
ultimate widening of any street by altering the existing alignments of such street to
improved alignments to be prescribed by the Board but that it is not necessary
immediately to acquire all or any of the properties lying within the proposed
alignments, the Board may frame a deferred street scheme prescribing an alignment on
each side of the street and specify the time limit for the execution of such scheme.
 105

(2) A deferred street scheme shall provide for the following matters, namely: -

(a) the acquisition of the whole or any part of any property lying within the
prescribed street alignments within the time-limit specified in the scheme which may be
extended by the Board from time to time:

Provided that such time-limit including the extentions granted by the Board
shall in no case exceed twenty years from the date of sanction of the scheme;

(b) the re-laying out of all or any such property including the construction of
buildings by the Board or by any other person, and the formation and alignment of the
street;
(c) the drainage, water supply and lighting of the streets so formed or altered.

(3) After a deferred street scheme has been notified in the Official Gazette as
required by section 45,

(a) no person shall, except, with the written permission of the Board, erect, re-
erect, add to, or alter any building or wall so as to make the same project into the
prescribed alignment of the street;

(b) if the Board fails to acquire, or to initiate proceedings for the acquisition of,
any property within the prescribed alignment of any street within the time limit
specified in the scheme or extended by it, the owner of such property may, at any time
thereafter, give the Board notice requiring it to acquire, or to initiate proceedings for the
acquisition of, such property before the expiration of six months from the date of such
notice, and thereupon the Board shall acquire the property, or initiate such proceedings
and acquire the property accordingly; and if the Board fails to do so, it shall pay
reasonable compensation to the owner for any damage sustained by him in
consequence of such failure;

(c) before proceeding to acquire any property lying within the prescribed
alignment of the street other than the property in respect of which it has received a
notice under clause (b), the Board shall give six month’s notice to the owner of its
intention to acquire such property;

(d) the local authority or planning authority or the Public Works Department
shall not have power to prescribe any alignment of the street within the limits of the
scheme, and any such alignment previously prescribed within such limits shall cease to
be the alignment of the street.
 106

Land development scheme

38. Whenever the Board is of opinion that it is expedient or necessary to provide

building sites in any area, the Board may frame a land development scheme for that
area, -
(a) specifying the lay-out of the area to be developed and the purposes for
which different portions thereof shall be utilised;

(b) providing for roads, streets, open spaces, drainage, water supply, street
lights and other amenities;

(c) providing for the disposal of house sites by sale or on hire-purchase basis.

General Improvement scheme

39. Whenever it appears to the Board ---

(a) that in any area, any buildings used or intended or likely to be used as
dwelling houses are unfit for human habitation, or

(b) that danger to the health of the inhabitants of buildings in any area, or
to buildings in the neighbourhood of such area is likely to be caused by ---

(i) the narrowness, closeness or bad arrangement or condition of

streets or buildings or groups of buildings in such areas, or
(ii) the want of light, air, ventilation, or proper conveniences in
such area, or
(iii) any other sanitary defects in such area,

the Board may frame a General improvement scheme in respect of such area.

Preparation, publication and transmission of notice as to housing or improvement

schemes and supply of documents to applicants

40. (1) When any housing or improvement scheme has been framed, the Board shall
prepare a notice to that effect and specify –

(a) the boundaries of the area comprised in the scheme;

(b) the place or places at which particulars of the scheme, a map of the area,
and details of the land which it is proposed to acquire and of the land in regard to
which it is proposed to recover a betterment fee, may be seen at reasonable hours.
 107

(2) The Board shall ---

(a) cause the said notice to the published weekly for three consecutive weeks in
the Official Gazette and in leading daily newspapers specifying the period upto which
the objections will be received; and
(b) send a copy of the notice to the local authority or planning authority
concerned.

(3) The Chairman shall cause copies of all documents referred to in clause (b) of
sub-section (1) to be delivered to any applicant on payment of the fee fixed by the
Board.

Transmission to the Board of representation by the concerned local authority or

planning authority as to housing or improvement scheme

41. The local authority or planning authority to which a copy of a notice has been
sent under clause (b) of sub-section (2) of section 40 shall, within a period of sixty days
from the date of receipt thereof forward to the Board, any representation which the
local authority or planning authority as the case may be, may wish to make regarding
the scheme.
Notice regarding proposal to recover betterment fee

42. (1) Within the three weeks following the day on which any notice is first
published under section 40 in respect of any housing or improvement scheme, the
Board shall serve a notice in such form as may be prescribed by rules on every person
whose name appears in the assessment list of the local authority or planning authority
concerned as being primarily liable to pay property tax on any building or land in
regard to which the Board proposes to recover betterment fee.
(2) A copy of the notice shall also be affixed in every such premises.
(3) Every such notice shall be signed by the Chairman or a person duly
authorised by him in that behalf.
(4) Any person on whom a notice under sub-section (1) has been served may,
within thirty days from the service of the notice make a representation in writing to the
Board stating his objections to the scheme.

Furnishing of copies or extracts from the assessment book of the

local authority or planning authority

43. The Executive Officer of any local authority or planning authority shall, at the
request of the Chairman, furnish him with a copy of, or an extract from, the assessment
list.
 108

Abandonment, modification or sanction of a housing or

improvement scheme

44. (1) After considering the objections and representations, if any, received in
pursuance of sub-section (2) of section 40, section 41 and sub-section (4) of section 42
and after hearing the persons who, having raised any such objection or made any such
representations, desire to be heard, the Board may either abandon or modify or sanction
the scheme, or apply to the Government for sanction with such modifications, if any, as
the Board may consider necessary if the cost of the scheme exceeds ten lakhs of rupees.
(2) The Government may sanction with or without modification, or may refuse
to sanction or may return for reconsideration any housing or improvement scheme,
costing over ten lakhs of rupees submitted to it under sub-section (1).
(3) If the scheme returned for reconsideration under sub-section (2) is modified
by the Board, the notice of the fact that the scheme has been modified shall be published
in accordance with section 40 ---

(a) in every case in which the modification affects the boundaries of the area
comprised in the scheme, or involves the acquisition of any land not previously
proposed to be acquired; and
(b) in every other case, where the modification is in the opinion of the Board
of sufficient importance to require publication.

Publication of sanction of housing or improvement scheme

45. (1) Whenever the Board or the Government sanctions a housing or
improvement scheme, the scheme as so sanctioned shall be notified in the Official
Gazette:
Provided that whenever the Board sanctions a scheme with modifications, if
any, it shall cause notice to that effect to be published weekly for two consecutive weeks
in the Official Gazette and in leading daily newspapers.
(2) The publication of the scheme or notice under sub-section (1) shall be
conclusive evidence that the scheme has been duly framed and sanctioned.
(3) Any person aggrieved by the sanctioning of a housing or improvement
scheme may, within thirty days from the date of the last publication in the Official
Gazette of the said scheme, appeal to the Government and the decision of the
Government on such appeal shall be final and shall not be liable to be questioned in any
court of law.
(4) The scheme shall come into force and shall have effect –

(a) where no appeal is preferred under sub-section (3) on and from the
expiry of the thirty days referred to in that sub-section; and
(b) where such appeal is preferred, on and from the date of the decision of
the Government on such appeal.
 109

The Board to execute housing or improvement scheme soon after sanction

46. As soon as may be after a housing or improvement scheme (other than an

expansion scheme or a deferred street scheme) has come into force, the Board shall
proceed to execute the same.

Alteration of a housing or improvement scheme after sanction

47. At any time after a housing or improvement scheme has been sanctioned by the
Board or the Government, as the case may be, but before it has been carried into
execution, the Board may alter or cancel it:

Provided that –
(a) if any alteration is likely to increase the estimated net cost of executing
the scheme by more than ten per cent of the total cost, or if any altered scheme is likely
to cost more than ten lakhs of rupees, the alteration shall not be made without the
previous sanction of the Government;
(b) if any alteration involves the acquisition otherwise than by agreement of
any land not previously proposed to be acquired in the original scheme, the procedure
prescribed in the foregoing sections of this Chapter shall, so far as it may be applicable,
be followed so if the alteration were a separate scheme;
(c) if, owing to any alteration, any land not previously liable under the
scheme to the payment of betterment fee, becomes liable to such payment, the
procedure laid down in sections 40, 41 and 42 shall, so far as it may be applicable, be
followed in regard to such land:

Provided further that no scheme, costing over ten lakhs of rupees; shall be
cancelled under this section without the previous sanction of the Government.

Explanation.-- For the purposes of this section, the expression "alteration"

includes a combination of two or more schemes framed or proposed to be framed and
the expression "altered scheme" includes any scheme so combined.

Transfer to Board for purposes of improvement scheme building or land vested in

local authority or planning authority

48. (1) Whenever any building or land or any part thereof, which is situated within
the jurisdiction of a local authority or planning authority and is vested in such local
authority or planning authority is covered by any housing or improvement scheme, the
Board shall give notice to that effect to the local authority or planning authority, as the
case may be, and such building or land or part thereof shall thereupon vest in the
Board.
 110

(2) Where any land situated within the jurisdiction of a local authority or
planning authority vests in the Board under sub-section (1) and the Board makes a
declaration that such land will be retained by the Board only until it revests in the local
authority or planning authority, as the case may be, as part of a street or an open space
under section 51, no compensation shall be payable by the Board to the local authority
or planning authority, as the case may be, in respect of that land.

(3) Where any land or building vests in the Board under sub-section (1) and no
declaration is made under sub-section (2) in respect of the land, the Board shall pay to
the local authority or planning authority, as the case may be, as compensation a sum
equal to the market value of such land or building as on the date on which the scheme
comes into force under section 45 and where any building situated on the land in
respect of which a declaration has been made by the Board under sub-section (2) is
vested in the Board under sub-section (1), like compensation shall be payable in respect
of such building by the Board.

(4) Where contrary to the declaration made in respect of any land under
sub-section (2), the Board retains or disposes of the land, the Board shall pay to the local
authority or planning authority, as the case may be, compensation in respect of such
land in accordance with the provisions of sub-section (3).

(5) If any question or dispute arises as to whether the compensation is payable

under sub-section (3) or sub-section (4), or, as to the quantum of compensation payable
or as to whether any building, land or any part thereof, is required for the purposes of a
scheme, the matter shall be referred to the Government, whose decision thereon shall be
final.
Transfer of private street or square to Board for purpose of
housing or improvement scheme

49. (1) Whenever any private street or square or part thereof is required for
executing any housing or improvement scheme, the Board shall cause to be affixed in a
conspicuous place in or near such street or square or part thereof, a notice signed by the
Chairman –
(a) stating the purpose for which the street or square or part thereof is
required and;
(b) declaring that the Board will, on or after a date to be specified in the
notice, take over charge of such street of square, or part from the owner thereof,

and shall simultaneously send a copy of such notice to the owner of such street or
square or part.
(2) After considering the objections (if any), received in writing before the date
specified in the notice under sub-section (1), the Board may take over possession of such
street or square or part, and the same shall thereupon vest in the Board.
 111

(3) Upon the vesting of any private street, square or part thereof in the Board
under sub-section (2), the Board shall pay to the person who owned such street, square
or part, an amount equal to the amount which he would have been entitled to if such
street, square or part had been acquired under the Land Acquisition Act, 1894 (Central
Act 1 of 1894).

(4) If the Board makes any alteration in such street, square or part thereof or
closes access thereto and such alteration or closure causes damage or substantial
inconvenience to owners of property adjacent thereto, or to residents in the
neighbourhood, the Board shall forthwith provide some other reasonable means of
access for the use of such owners or residents and shall also pay them reasonable
compensation for any damage or substantial inconvenience so caused.

Repairs of streets vested in the Board

50. Whenever the Board allows any street vested in it to be used for public traffic it
shall keep the street in good repair and do all things necessary for the safety and
convenience of persons using it.

Transferring streets laid out or altered and open spaces provided by the Board under
a housing or an improvement scheme
51. (1) The Board may hand over any street to a local authority or planning
authority concerned after giving a month’s notice, when --
(a) any such street laid out or altered by the Board has been duly levelled,
metalled, flagged, channeled, sewered and drained in the manner provided in the
scheme sanctioned by the Board or the Government under section 44;
(b) lamp posts necessary for the lighting of such streets have been
provided by the Board; and
(c) water and other sanitary conveniences have been duly provided in
such streets.
(2) (a) The local authority or planning authority concerned may, after
receiving the notice from the Board under sub-section (1), declare the street to be a
public street;
(b) The street shall thereupon vest in the local authority or planning
authority, as the case may be, and shall thenceforth be maintained, kept in repair,
lighted and cleaned by the local authority or planning authority concerned.
(3) When any open space for the purposes of ventilation or recreation has been
provided by the Board in executing any housing or improvement scheme, it shall, on
completion, be transferred to the local authority or planning authority concerned by a
resolution of the Board and it shall thereupon vest in the local authority or planning
authority concerned and thereafter be maintained by that local authority or planning
authority at its expense:
 112

Provided that the local authority or planning authority, as the case may be,
may require the Board before any such open space is so transferred, to enclose, level,
turf, drain and layout such space and provide foot-path therein, and, if necessary, to
provide lamps and other apparatus for lighting it.

Prevention or restriction of traffic in street vested in the Board

52. (1) When any work is being lawfully executed by the Board in any street vested
in it, the Board may direct that such street shall, during the progress of such work, be
either wholly or partially closed to traffic generally or to traffic of any specified
description.
(2) When any such direction has been given, the Board shall set up, in a
conspicuous position in or near the street, an order prohibiting traffic to the extent so
directed, and fix such bars, chains, or posts across or in the street as it may think proper
for preventing or restricting traffic therein.

Provision of facilities when work is executed by the Board in

public streets vested in it
53. (1) When any work is being executed by the Board in any public street vested
in it, the Board shall, so far as may reasonably be practicable, make adequate provision
for ---
(a) the passage or diversion of traffic;
(b) securing access to all premises approached from such street; and
(c) any drainage, water supply, or means of lighting which is interrupted
by reason of the execution of the work.

(2) The Board shall pay reasonable compensation to any person who sustains
special damage by reason of the execution of any such work.
Power of the Board to turn or close public street or square vested in it
54. (1) The Board may ---
(a) turn, divert or discontinue the public use of, or permanently close, any
public street vested in it or any part thereof; or
(b) discontinue the public use of, or permanently close, any public square
vested in it or any part thereof.

(2) Whenever the Board discontinues the public use of, or permanently closes,
any public street vested in it or any part thereof, it shall pay reasonable compensation to
every person who was entitled, otherwise than as a member of the public, to use such
street or part as means of access, and has suffered damage from such discontinuance or
closure.
(3) Whenever the Board discontinues the public use of, or permanently closes,
any public square vested in it or any part thereof, it shall pay reasonable compensation
to every person who was entitled, otherwise than as a member of the public, to use such
square or part as a means of access.
 113

(4) When any public street or square vested in the Board, or any part thereof, is
permanently closed under sub-section (1), the Board may sell or lease out such portion
thereof as is no longer required.

Power of the Board to retain lanes not meant for vehicular traffic
55. The Board may retain any lane (not meant for vehicular traffic) and may enter
into an agreement with the local authority or planning authority concerned or any other
person for the supervision, repair, lighting any general management of any such lane so
retained.
Other duties of the Board
56. It shall also be the duty of the Board to take measures with a view ---

(a) to plan and coordinate all housing activities in the Union territory, and
to ensure expeditious and efficient implementation of housing or improvement schemes
in the Union territory;
(b) to provide technical advice and scrutinise all projects under housing or
improvement schemes sponsored or assisted by the Central Government or the
Government of the Union territory;
(c) to maintain, allot, lease and otherwise use plots, buildings, and other
properties of the Board or the Government and to collect rents from the properties
under the control and management of the Board, and repay loans to the Government
and Central Government;
(d) to set up a research section for the purpose of expediting the
construction of, and reducing the cost of buildings; and
(e) to organise and run workshops and stores for manufacture, sale,
stockpiling and supply of building materials, required for housing or improvement
schemes.
Supervision and centage charges
57. The Board may include in the cost of any housing or improvement scheme
framed by it or any other work undertaken by it, supervision and centage charges at
such rates as may be fixed by it:
Provided that the rate so fixed shall not be more than twelve and a half per cent
of the cost of the scheme or work.

Power of Government to call for the records of the Board and to modify, annual, etc.,
of housing or improvement schemes
58. (1) Notwithstanding anything contained in the foregoing provisions of this
Chapter, the Government may at any time, in the case of any housing or improvement
scheme, proposed to be framed or framed by the Board or being executed by it, call for
the records of the Board relating to such scheme and if, after examining the same and
considering the representations, if any, of the Board and local authority of planning
authority concerned, it appears to the Government that such scheme should be
 114

modified, annulled or remitted for consideration to the Board or that such scheme
should be executed with modifications, it may pass orders accordingly.
(2) The Government may stay the execution of any such scheme pending the
exercise of its powers under sub-section (1) in respect thereof.
(3) (a) Any housing or improvement scheme which has already come into
force but has been modified by the Government under sub-section (1) shall have effect
as if it had been duly sanctioned by the Board under section 44.

(b) The scheme as modified shall be published in accordance with the

provisions of section 45 and on such publication the scheme so modified shall come into
force and shall have effect.
Power to exempt
59. The Government, may, by notification, in the Official Gazette, exempt, subject to
such conditions and restrictions as may be specified in the notification, any housing or
improvement scheme or class of housing or improvement schemes from all or any of
the provisions of this chapter.
CHAPTER – VI

ACQUISITION AND DISPOSAL OF LAND

Power to acquire land under the Land Acquisition Act, 1894

60. Any land or any interest therein required by the Board for any of the purposes of
this Act shall be deemed to be required for a public purpose and may be acquired under
the provisions of the Land Acquisition Act, 1894 (Central Act 1 of 1894).

Power to purchase or lease by agreement

61. The Board may enter into agreement with any person for the acquisition from
him by purchase, lease or exchange, of any land or any interest therein which may be
required for any of the purposes of this Act:

Provided that if the value of such land or interest exceeds 1[three lakh rupees],
the Board shall not enter into such agreement without the previous approval of the
Government.
Power to dispose of land

62. The Board may, subject to such rules as may be made in this behalf, retain or
may lease, sell, exchange or otherwise dispose of any land vested in or acquired by it,
under this Act.

1. Amended vide Act No.11 of 1987 and published in the Extra - ordinary Gazette No.43 dated 31.12.87.
 115

CHAPTER – VII

LEVY, ASSESSMENT AND RECOVERY OF BETTERMENT FEE

Payment of betterment fee

63. (1) When by the execution of a housing or improvement scheme any land in the
area comprised in the scheme which is not required for the execution thereof will, in the
opinion of the Board, be increased in value, the Board, in framing the scheme, may
declare that betterment fee shall be payable by the owner of the land or any person
having an interest therein in respect of the increase in value of the land resulting from
the execution of the scheme.

(2) Such increase in value shall be the amount by which the value of the land on
the completion of the execution of the scheme estimated as if the land were clear of
buildings, exceeds the value of the land prior to the execution of the scheme estimated
in the like manner; and the betterment fee shall be one-third of such increase in value.

(3) The Board may, with the previous approval of the Government, declare that
such betterment fee shall also be payable in respect of any land not comprised in the
scheme but is adjacent to the area comprised in the scheme if such land will be
increased in value consequent on the execution of a housing or improvement scheme in
the area comprised in the scheme:

Provided that the Board shall, before declaring that any betterment fee shall be
payable under this sub-section, serve a notice in such form as may be prescribed, on
every person whose name appears in the assessment list of the local authority or
planning authority concerned as being primarily liable to pay property tax on any
building or land in regard to which the Board proposes to declare that such betterment
fee shall be payable and thereupon the provisions of sub-section (2), (3) and (4) of
section 42 shall apply to every notice served under this proviso.

Assessment of betterment fee by the Board and notice to

persons liable to such fee

64. (1) Whenever it appears to the Board that a housing or improvement scheme is
sufficiently advanced to enable the amount of the betterment fee to be assessed, the
Board shall, by a resolution passed in this behalf, declare that for the purpose of
assessing such fee, the execution of the scheme shall be deemed to have been completed
and shall thereafter give notice in writing to every person on whom a notice in respect
of land to be assessed has been served under sub-section (1) of section 42, or to the
successor in interest of such person, as the case may be, that the board proposes to
assess the amount of the betterment fee payable in respect of the land under section 63.
 116

(2) The Board shall then assess the amount of betterment fee payable by each
person concerned, after giving such person an opportunity of being heard, and such
person, shall, within one month from the date of receipt of notice in writing of such
assessment from the Board, inform the Board in writing whether or not he accepts the
assessment.

(3) When the assessment proposed by the Board is accepted by the person
concerned within the period specified in sub-section (2), such assessment shall be final.

(4) If the person concerned does not accept the assessment made by the Board
or fails to inform the Board as required under sub-section (2) within the period specified
therein, the matter shall be referred to the Government..

(5) The Government shall, after holding an inquiry, and after hearing the
person concerned, assess the amount of betterment fee payable by the person.

Board to give notice to persons liable to payment of betterment fees

65. When the amount of all betterment fees payable in respect of land in the area
comprised in the scheme and in respect of land not comprised in the scheme area but is
adjacent to the area comprised in the scheme referred to in sub-section (3) of section 63
has been assessed under section 64, the Board shall, by a notice in writing to be served
on all persons liable to such payment, fix a date by which such payment shall be made,
and interest at the rate of four and a half per cent per annum upon any amount
outstanding shall be payable from that date:

Provided that any person liable as aforesaid may make payment, if he so

chooses, in such number of annual instalments not exceeding ten as the Board may
determine.
Recovery of betterment fees

66. All moneys payable as betterment fees in respect of any land by any person shall,
together with interest due up to the date of realization, be recoverable by the Board
from the said person or his successor-in interest in such land, as an arrear of land
revenue.
Levy of betterment fee not bar to acquisition

67. Levy or payment of betterment fee with respect to a land under the provisions of
this Chapter shall not be deemed to prevent the acquisition of the land under the Land
Acquisition Act, 1894 (Central Act 1 of 1894).
 117

CHAPTER – VIII

POWER TO EVICT PERSONS FROM BOARD PREMISES

Power to evict certain persons from Board premises

68. (1) If the competent authority is satisfied. --

(a) that the person authorised to occupy any Board premises, –

(i) has not paid rent lawfully due from him in respect of such premises for
a period of more than two months; or
(ii) has sub-let, without the permission of the Board, the whole or any part
of such premises; or
(iii) has otherwise acted in contravention of any of the terms, expressed or
implied, under which he is authorised to occupy such premises; or

(b) that any person is in unauthorised occupation of any Board premises, the
competent authority may, notwithstanding anything contained in any law for the time
being in force, by notice served by registered post, or by affixing a copy of it on the
outer door or some other conspicuous part of such premises, or in such other manner as
may be prescribed by rules, order that the person authorised to occupy as well as any
other person who may be in occupation of the whole or any part of the premises shall
vacate them within one month of the date of the service of the notice.

(2) Before an order under sub-section (1) is made against any person, the
competent authority shall inform the person, by notice in writing and served in the
manner provided for service of notice under sub-section (1), of the grounds for which
the proposed order is to be made and give him a reasonable opportunity of tendering
an explanation and producing evidence, if any, and to show cause why such order
should not be made within a period to be specified in such notice.

(3) The competent authority may, on application, grant extension of the period
specified in such notice on such terms as to payment and recovery of the amount
claimed in the notice as he deems fit.

(4) Any written statement put in by such person and documents produced in
pursuance of such notice shall be filed with the records of the case, and such person
shall be entitled to appear in the proceeding either in person or by pleader.

(5) If any person refuses or fails to comply with an order made under
sub-section (1), the competent authority may evict that person from and take possession
of, the premises and may for that purposes use such force as may be necessary.
 118

(6) If a person, who has been ordered to vacate any premises under sub-clause
(i) or sub-clause (iii) of clause (a) of sub-section (1) within one month of the date of
service of the notice or such longer time as the competent authority may allow, pays to
the Board the rent in arrears or carries out or otherwise complies with the terms
contravened by him to the satisfaction of the competent authority as the case may be,
the competent authority shall, in lieu of evicting such person under sub-section (5),
cancel its order made under sub-section (1), and thereupon such person shall hold the
premises on the same terms on which he held them immediately before such notice was
served on him.

Explanation. – For the purposes of this section and section 69, the expression
"unauthorised occupation" in relation to any person authorised to occupy any Board
premises, includes the continuance in occupation by him or by any person claiming
through or under him of the premises after the authority under which he was allowed
to occupy the premises has been duly determined.

Power to recover rent or damage as arrears of land revenue

69. (1) (a) Subject to any rules made by the Government in this behalf and
without prejudice to the provisions of section 68, where any person is in arrears of rent
payable in respect of any Board premises, the competent authority may, by notice
served by registered post, or by affixing a copy of it on the outer door or same other
conspicuous part of such premises, or in such other manner as may be prescribed by
rules, order that person to pay the same within such time not being less than ten days as
may be specified in the notice.

(b) In such person refuses or fails to pay the arrears of rent within the time
specified in the notice, such arrears may be recovered as an arrear of land revenue.

(2) (a) Where any person is in unauthorsied occupation of any Board

premises, the competent authority may, assess damages on account of the unauthorised
use and occupation of the premises as it may deem fit in the manner prescribed by
rules, and may by notice served in the manner provided for service of notice under
sub-section (1), order that person to pay the damages within such time as may be
specified in the notice.
(b) If any person refuses or fails to pay the damages within the time
specified in the notice, the damages may be recovered from him as an arrear of land
revenue.
(3) No order shall be made under sub-section (2) until after the issue of a notice
in writing to the person calling on him to show cause, within such period as may be
specified in such notice, why such order should not be made, and until his objections, if
any, and any evidence he may produce in support of the same have been considered by
the competent authority.
 119

Appeal

70. (1) Any person aggrieved by an order of the competent authority under section
68 or section 69 may, within one month from the date of receipt of such order by him,
prefer an appeal to the Government:

Provided that the Government may entertain the appeal after the expiry of one
month, if it is satisfied that the appellant was prevented by sufficient cause from filing
the appeal in time.

(2) On receipt of an appeal under sub-section (1), the Government may, after
calling for a report from the competent authority and after making such further inquiry,
if any, as may be necessary, pass such orders as it thinks fit and the order of the
Government shall be final.
(3) On such appeal being preferred, the Government may stay the execution of
the order of the competent authority for such period and on such conditions as it may
think fit.

Rent to be recovered from deductions from salary or wages in certain cases

71. (1) Subject to the provisions of section 68, any person who is an employee of the
Government or a local authority and who has been allotted any Board premises may
execute an agreement in favour of the Board providing that the Government or the local
authority, as the case may be, under or by whom he is employed shall be competent to
deduct from the salary or wages payable to him, such amount as may be specified in the
agreement and to pay the amount so deducted to the Board in satisfaction of the rent
due by him in respect of the Board premises allotted to him.
(2) On the execution of such agreement, the Government or the local authority,
as the case may be, shall, if so required by the Board by requisition in writing, make the
deduction of the amount specified in the requisition from the salary or wages of the
employee specified in the requisition in accordance with the agreement and pay the
amount so deducted to the Board.

Bar of jurisdiction of courts

72. No order made by the Government or the competent authority in the exercise of
any power conferred by or under this Chapter shall be called in question in any court
and no injunction shall be granted by any court or other authority in respect of any
action taken or to be taken in pursuance of any power conferred by or under this
Chapter.
 120

CHAPTER – IX

FINANCE

Funds of the Board

73. (1) The Board shall have and maintain its own fund to which shall be credited, --

(a) all moneys received by the Board from the Government by way of grants,
loans, advances, donations, gifts or otherwise or from any other source;
(b) all moneys received by or on behalf of the Board under this Act including
the sale proceeds of lands and other kinds of property sold by the Board, all rents and
all interests, profits, or other moneys accruing to the Board under this Act.

(2) The Board may keep in current account of the State Bank of India or any other
Bank approved by the Government in this behalf such sum of money out of its funds as
may be prescribed by rules and any money in excess of the said sum shall be invested in
such manner as may be approved by the Government.
(3) The Government may make such grants, advances and loans to the Board as it
may deem necessary for the performance of the functions under this Act and all grants,
loans and advances so made shall be on such terms and conditions as the Government
may determine.
Power of the Board to borrow and lend

74. Subject to the provisions of this Act and subject to such conditions and
limitations as may be prescribed by rules and with the previous approval of the
Government, the Board may, --

(a) borrow money required for the purposes of this Act, from the public or
from any corporation owned or controlled by the Government;
(b) take credit from any Bank or any corporation owned or controlled by
the Government on a cash account to be kept in the name of the Board and mortgage all
or any of the properties vested in the Board by way of security for such credit;
(c) for the promotion and execution of any housing or improvement
schemes under this Act, enter into any financial arrangements with any Bank or other
financial institutions approved by the Government or with the Life Insurance
Corporation of India established under section 3 of the Life Insurance Corporation Act,
1956 (Central Act 31 of 1956);
(d) grant loans and advances out of its funds on such terms and conditions
as it may determine, to any co-operative society registered or deemed to be registered
under the law relating to co-operative societies for the time being in force in the Union
territory or to any other person for the construction of houses.
 121

Issue of debentures
75. (1) Whenever money is borrowed by the Board on debentures, the debentures
shall be in such form as the Board may, with the previous sanction of the Government,
determine.
(2) All debentures shall be signed by the Chairman and by one of the members
of the Board or by any other officer empowered by the Board in this behalf.
(3) The holder of any debenture in any form determined under sub-section (1)
may obtain in exchange therefor a debenture in any other form determined under the
said sub-section and on such terms as may be specified by the Board.
(4) Every debenture issued by the Board shall be transferable by endorsement,
unless some other mode of transfer is specified therein.
(5) All coupons attached to debentures issued under this Act shall bear the
signature of the Chairman; and such signature may be engraved, lithographed or
impressed by any mechanical process.

Payments to survivors of joint payees

76. When any debenture or security issued or granted under this Chapter is payable
to two or more persons jointly, and either or any of them dies, then, notwithstanding
anything contained in section 45 of the Indian Contract Act 1872 (Central Act 9 of 1872),
the debenture or security shall be payable to the survivors of such persons:

Provided that nothing in this section shall affect any claim by the
representative of the deceased person against such survivor or survivors.

Receipt by joint holder for interest or dividend

77. Where two or more persons are joint holders of any debenture or security issued
or granted under this Chapter, any payment made to the first mentioned person therein
of any dividend or interest payable in respect of such debenture or security shall be a
full discharge of the liability of the Board in respect of such dividend or interest.

Priority of payments for interest and re-payment of loans

78. In making payment of dues from the Board, the Board shall give priority to
repayment of loans borrowed by it and of interest thereon over all other dues from the
Board.
Repayment of loans
79. Every loan taken by the Board shall be repaid by the Board within the period
agreed upon by the Board and subject to such restrictions and conditions as may be
prescribed by rules in that behalf, by such of the following methods as may be
approved by the Government, namely:-
 122

(a) from a sinking fund established under section 80 in respect of the loan; or
(b) by paying in equal yearly or half-yearly instalments of principal or of
principal and interest, throughout the said period; or
(c) if the Board has, before borrowing money on debentures, reserved by public
notice, a power to pay off the loan by periodical instalments and to select by lot the
particular debentures to be discharged at particular periods then, by paying such
instalments at such periods; or
(d) from money borrowed for the purpose; or
(e) partly from the sinking fund established under section 80 in respect of the
loan, and partly from money borrowed for the purpose.

Establishment and maintenance of sinking fund

80. (1) Whenever a loan has to be repaid from a sinking fund, the Board shall
establish such fund and shall pay into it every year until the loan is repaid, a sum so
calculated that if regularly paid throughout the period agreed upon by the Board, it
would, with accumulations in the way of compound interest, be sufficient, after
payment of all expenses, to pay off the loan at the end of that period.
(2) The rate of interest on the basis of which the sum referred to in sub-section
(1) shall be calculated shall be such as may be prescribed by rules.

Power to discontinue payments into sinking fund.

81. Notwithstanding anything contained in section 80, if at any time the sum
standing at credit of the sinking fund established for repayment of any loan is of such
amount that if allowed to accumulate at the rate of interest prescribed by rules under
sub-section (2) of that section, it will be sufficient to repay the loan at the end of the
period agreed upon by the Board, then the Board may discontinue further annual
payment into such fund.
Investment of sinking fund

82. All moneys paid into the sinking fund shall, as soon as possible, be invested by
the Board in ---
(a) Government securities; or
(b) securities guaranteed by the Government.

Application of sinking fund

83. The sinking fund or any part thereof, shall, from time to time, be applied in or
towards the discharge of the loan or any part of the loan for which such sinking fund
was established; and until such loan is wholly discharged, it shall not be applied for any
other purpose.
 123

Annual examination of sinking fund

84. (1) The Pay and Accounts Officer, Puducherry, shall examine the sinking fund
of the Board every year and ascertain whether the cash and current value of the
securities at credit of such funds are actually equal to the amount which would have
accumulated, had investments been regularly made and had the rate of interest as
originally estimated been obtained therefrom.
(2) The Board shall forthwith pay into the sinking fund any amount which the
Pay and Accounts Officer may certify to be the deficiency therein after examination as
aforesaid, unless the Government specially sanctions a gradual readjustment.

Estimates of income and expenditure to be laid before the Board

85. (1) The Chairman shall, at a special meeting to be held in the month of
February in each year, lay before the Board an estimate of the income and expenditure
of the Board for the next ensuing year.
(2) Every such estimate shall make provision for the due fulfilment of all
liabilities of the Board, and for the efficient administration of this Act.
(3) Every such estimate shall differentiate capital and revenue funds and shall
be prepared in such form, and shall contain such details, as the Government may, from
time to time, prescribe by rules.
(4) Every such estimate shall be compiled and printed and a copy thereof sent,
by post or otherwise, to each member at least ten clear days before the date of the
meeting at which the estimate is to be laid before the Board.
(5) A revised estimate, if any, including all the expenditure not covered in the
original estimate, shall be laid before the Board at a special meeting to be held in the
month of December in each year.

Sanction of estimates

86. The Board shall consider every estimate so laid before it and shall sanction the
same, either without modification or with such modification as it may think fit.

Approval of Government to estimates

87. (1) Every such estimate, as sanctioned by the Board, shall be submitted to the
Government which may, at any time within three months after receipt of the same -

(a) approve the estimate, or

(b) disallow the estimate or any portion thereof and return the estimate to the
Board for amendment.
(2) If any estimate is so returned to the Board, it shall forthwith proceed to amend
it and shall resubmit the estimate as amended to the Government for approval.
 124

Supplementary estimate

88. (1) The Chairman may, at any time, during the year for which any estimate has
been sanctioned, cause a supplementary estimate to be prepared, and laid before the
Board at a special meeting.
(2) The provisions of sub-section (3) and (4) of section 85 and of section 86 and
87 shall apply to every such supplementary estimate.

Adherence to estimate and maintenance of closing balance

89. (1) No sum shall be expended by or on behalf of the Board unless the
expenditure of the same is covered by the estimate approved by the Government or can
be met by reappropriation or by drawing on the closing balance.
(2) The closing balance shall not be reduced below such limit as may be fixed in
this behalf by the Government, from time to time.
(3) The following items shall be exempted from the provisions of sub-sections
(1) and (2) namely: -

(a) refund of moneys belonging to contractors or other persons held in

deposit, and of moneys collected by, or credited to, the Board by mistake;
(b) sums payable under a compromise of any suit or other legal
proceedings or claim effected under this Act;
(c) sums payable under this Act by way of compensation; and
(d) payments required to meet any pressing emergency.

(4) Whenever any sum exceeding ten thousand rupees is expended under
clause (d) of sub-section (3), the Chairman shall forthwith report the circumstances to
the Board explaining how it is proposed to cover the expenditure.

Keeping of accounts

90. (1) The Board shall keep a capital account and a revenue account.
(2) Such sums as may be received by the Board under the provisions of this Act
shall be divided and credited to the capital account or the revenue account, as the case
may be, in such manner as may be prescribed by rules.
(3) Appropriation of amounts out of two different accounts referred to in
sub-section (1) shall be specifically provided in the rules made in this behalf.
 125

Change from one account to the other

91. (1) The Board may, with the previous approval of the Government; advance to
the Revenue account any sum from the moneys standing in the Capital account or from
the Revenue account to the Capital account, in either case, for the purpose of meeting
any expenditure relatable to the account to which money is advanced.
(2) Any deficit in the Revenue account at the end of any year may be made
good by an advance from the Capital account after obtaining the approval of the
Government.
Budget of the Board

92. The Board shall prepare in such form and at such time every year as may be
prescribed by rules, a budget in respect of the financial year next ensuing, showing the
estimated receipts and expenditure of the Board in respect of the administration of this
Act and shall forward to the Government such number of copies thereof as may be
prescribed by such rules.
Accounts and Audit

93. (1) The Board shall maintain proper accounts and other relevant records and
prepare an annual statement of accounts including the balance sheet in such form as
may be prescribed by rules.
(2) The accounts of the Board shall be audited annually by the Pay and
Accounts Officer, Puducherry or any other officer authorsied by him in this behalf
subject to the super-imposed audit of the Accountant-General to the extent necessary.
(3) The Pay and Accounts Officer, Puducherry or any person appointed by him
in connection with the audit of accounts of the Board shall have the same rights and
privileges and authority in connection with such audit as the Accountant-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 the office of the Board.
(4) The accounts of the Board as certified by the Pay and Accounts Officer,
Puducherry or any person appointed by him in this behalf together with the audit
report thereon shall be forwarded to the Government.

Annual reports

94. The Board shall prepare every year a report of its activities containing an abstract
of the accounts of its receipts and expenditure during that year and submit the report to
the Government in such form on or before such date as may be prescribed by rules.
 126

CHAPTER - X

PENALTIES AND PROCEDURE

Penalty for removing fence, etc., in street

95. If any person, without lawful authority infringes any lawful order given by an
authority under this Act, or removes any bar, chain or post fixed under sub-section (2)
or section 52, he shall be punishable with fine which may extend to fifty rupees.

Penalty for building within street alignment or

building line without permission

96. If any person, without the permission of the Board, erects, re-erects, adds to, or
alters, any wall or building so as to make the same project into the street alignment or
beyond the building line prescribed by any deferred street scheme, development
scheme or town expansion scheme, he shall be punishable –

(a) with fine which may extend, in the case of a wall or masonry building, to
five hundred rupees and in any other case, to fifty rupees; and
(b) where the offence is continued, with further fine which may extend, in the
case of a wall or masonry building, to one hundred rupees and in any other case, to ten
rupees for every day after the first during which the projection continues.

Penalty for failure to comply with requisition made by auditor

97. If any person fails to comply with any requisition made by the auditor under
section 93, he shall be punishable –

(a) with fine which may extend to one hundred rupees; and
(b) in case of a continuing failure, with an additional fine which may extend to
fifty rupees for every day after the first during which he has persisted in the failure.

Penalty for obstructing contractor or removing mark

98. If any person, --

(a) obstructs or molests any person with whom the Chairman has entered into a
contract on behalf of the Board, in the performance or execution by such person of his
duty or of anything which he is empowered or required to do by virtue or in
consequence of this Act or any rule or regulation made or scheme sanctioned
thereunder; or
(b) removes any mark set up for the purpose of indicating any level or direction
necessary to the execution of works authorised by this Act or any rule or regulation
 127

made or scheme sanctioned thereunder, he shall be punishable with fine which may
extend to two hundred rupees.

Penalty for breach of the provisions of the Act, etc.

99. Whoever contravenes any of the provisions of this Act or of any rule or
regulation made or scheme sanctioned thereunder shall, if no other penalty is provided
for such contravention, be punishable –

(a) with fine which may extend to one hundred rupees; and
(b) in case of a continuing contravention, with an additional fine which may
extend to fifty rupees for every day after the first during which he has persisted in the
contravention.

Compensation to be paid by offenders for damage caused by them

100. (1) When any person is convicted of any offence under this Act or any rule or
regulation made or scheme sanctioned thereunder, the magistrate convicting such
person may, on application made to him in this behalf by the Board or by its officer or
servant authorised by it in this behalf, call upon such person forthwith to show cause as
to why he should not pay compensation to the Board for the damage caused by his act
or omission in respect of which he is convicted.
(2) The magistrate shall record and consider any cause which such person may
show and if the magistrate, after making such inquiry as he may think fit, is satisfied
that such person is liable to pay compensation, may direct that compensation of such
amount not exceeding one thousand rupees as he may determine, be paid by such
person to the Board.
(3) The amount of compensation directed to be paid under sub-section (2),
shall, if it be not paid forthwith, be recovered as if it were a fine imposed by the
magistrate on such person.
Composition of offences

101. (1) The Board, the Chairman or any person authorised by the Board in this
behalf, by general or special order, may either before or after the institution of the
proceedings compound any offence punishable under this Act.
(2) When the offence has been compounded, the offender, if in custody, shall be
discharged and no further proceedings shall be taken against him in respect of the
offence compounded.
Fine realised to be paid to Board

102. All fines realised in connection with prosecution under this Act shall be paid to
the Board.
 128

Cognizance of offence under this Act

103. (1) No court shall take cognizance of any offence punishable under this Act or
any rule or regulation made of scheme sanctioned thereunder unless a complaint of
such offence is made by the Chairman within six months, next after the commission
thereof.
(2) No court inferior to that of a magistrate of the first class shall try any offence
punishable under this Act.
Duty of police officers

104. It shall be the duty of every police officer –

(a) to co-operate with the Chairman for carrying into effect and enforcing the
provisions of this Act or any rule or regulation made or scheme sanctioned thereunder;
(b) to communicate without delay to the proper officer or servant of the
Board any information which he receives of a design to commit or of the commission of
any offence punishable under this Act; and
(c) to assist the Chairman or any officer or servant of the Board reasonably
demanding his aid for the lawful exercise of any power vesting in the Chairman or in
such officer or servant under this Act or any rule or regulation made or scheme
sanctioned thereunder.
Arrest of offenders

105. (1) Any police officer not below the rank of a head constable may arrest any
person who commits in his presence, any offence punishable under this Act or any rule
or regulation made or scheme sanctioned thereunder, if the name or address of such
person be unknown to him and if such person on demand declines to give his name or
address, or gives a name or address which such officer has reason to believe to be false.

(2) (a) No person so arrested shall be detained in custody after his true name
and address are ascertained, or for any longer time than is necessary for bringing him
before a magistrate.
(b) In no case shall such detention exceed twenty-four hours from the time
of arrest without the orders of a magistrate.

Powers of Chairman as to institution, etc., of legal proceedings and obtaining legal

advice

106. The Chairman may, subject to the control of the Board –

(a) institute, defend or withdraw any legal proceeding under this Act or
any rule or regulation made or scheme sanctioned thereunder;
 129

(b) admit, compromise or withdraw any claim made under this Act or any
rule or regulation made or scheme sanctioned thereunder.
(c) obtain such legal advice and assistance as he may, from time to time,
think it necessary or expedient to obtain, or as may be desired by the Board to obtain,
for any of the purposes referred to in the foregoing clauses of this section, or for
securing the lawful exercise or discharge of any power or duty vested in, or imposed
upon, the Board or any officer or servant of the Board.

Protection of action taken in good faith

107. No suit, prosecution or other legal proceeding shall lie against the Government,
the Board or any Committee or member thereof or any officer or other employee of the
Government or of the Board for anything which is in good faith done or intended to be
done in pursuance of this Act or any rule or regulation made or scheme sanctioned
thereunder.
Notice of suit against Board etc.

108. No suit shall be instituted against the Board, or any member, or any officer or
other employee of the Board, or any person acting under the direction of the Board, or
of the Chairman in respect of any act done or intended to be done under this Act or any
rule or regulation made or scheme sanctioned thereunder until the expiration of sixty
days next after written notice has been delivered or left at the Board’s office or the place
of abode of such officer, employee or person, stating the cause of action, the name and
the place of abode of the intending plaintiff, and the relief which he claims, and the
plaint shall contain a statement that such notice has been so delivered or left.

Proof of consent, etc., of Board or Chairman or officer or

servant of the Board

109. Whenever, under this Act or any rule or regulation made or scheme sanctioned
thereunder, the doing or the omission to do anything or the validity of anything
depends upon the approval, sanction, consent, concurrence, declaration, opinion, or
satisfaction of ---

(a) the Board or the Chairman, or

(b) any officer or servant of the Board, a written document signed in case (a) by
the Chairman, and in case (b) by the said officer or servant, conveying or setting forth
such approval, sanction, consent, concurrence, declaration, opinion or satisfaction, shall
be sufficient evidence of such approval, sanction, consent, concurrence, declaration,
opinion or satisfaction.
 130

Power of Chairman to direct removal of unauthorised erections, etc.,

within street alignment, etc.

110. (1) The Chairman may, by a written notice, require the owner for the time
being of a wall or building referred to in section 96 to stop further work on such wall or
building and to alter or demolish the same in such manner and within such time as may
be specified in the notice.
(2) Where the alteration or demolition directed by any such notice is not carried
out as directed therein the Chairman may cause the wall or building or portion thereof
to be altered or demolished, as the case may be, and he may recover the expenses
incurred in so doing from the owner for the time being in such manner as may be
prescribed by rules.

General power of the Board to pay compensation

111. In any case not otherwise expressly provided for in this Act, the Board may pay
reasonable compensation to any person who sustains damage by reason of the exercise
of any of the powers vested in the Board or the Chairman or any officer or employee of
the Board by or under this Act.

Public notice how to be made known

112. (1) Every public notice required to be given under this Act or any rule or
regulation made or scheme sanctioned thereunder shall be in writing and signed by the
Chairman and shall be given publicity in the locality likely to be affected thereby, by
any one or more of the following modes, namely: -
(i) by affixing copies thereof in conspicuous public places in the said
locality, or
(ii) by beat of drum in the said locality, or
(iii) by publishing the notice in leading daily newspapers in circulation in
the said locality, or
(iv) by any other mode which the Chairman may deem fit.
(2) Every notice under sub-section (1) shall also be affixed on the notice board
of the Board’s head office or sub-office.

Publication in leading daily newspapers

113. Whenever it is provided by this Act or any rule or regulation made or scheme
sanctioned thereunder that any notice, scheme, notification or any other document shall
be published in leading daily newspapers, such notice, scheme, notification or other
document shall be published, as far as possible, in at least one English daily newspaper
and in two daily newspapers in Tamil in circulation in the area to which such notice,
scheme, notification or other document relates.
 131

Stamping signature on notices or bills

114. Every notice or bill, which is required by this Act or by any rule or regulation
made or scheme sanctioned thereunder to bear the signature of the Chairman or any
other member or of any officer or other employee of the Board, shall be deemed to be
properly signed if it bears a facsimile of the signature of the Chairman or of such other
member or of such officer or other employee, as the case may be, stamped thereupon.

Service how to be effected

115. Except where any specific mode of service is provided in this Act, any notice,
bill or other document required by this Act or any rule or regulation made or scheme
sanctioned thereunder to be served upon or issued or presented to any person, shall be
served, issued or, as the case may be, presented --

(a) by giving or tendering such notice, bill or other document to such person; or
(b) if such person is not found, by leaving such notice, bill or other document at
his last known place of abode, or by giving or tendering the same to some adult
member of servant of his family; or
(c) if his address elsewhere is known, by forwarding such notice, bill or other
document to him by registered post under cover bearing the said address; or
(d) if none of the means aforesaid be available, by causing a copy of such
notice, bill or other document to be affixed on some conspicuous part of the building or
land, if any, to which the notice, bill or other document relates.

Power to make surveys, or contribute towards their cost.

116. The Board may ---

(a) cause the survey of any land to be made, whenever it considers that a
survey is necessary or expedient for carrying out any of the purposes of this Act; or
(b) contribute towards the cost of any such survey made by any other local
authority.
Power of entry
117.(1) The Chairman or any officer of the Board either generally or specially
authorised by the Chairman in this behalf may, with or without assistants or workmen,
enter into or upon any land, in order --
(a) to make any inspection, survey, measurement, valuation or inquiry;
(b) to take levels;
(c) to dig or bore into the sub-soil;
(d) to set out boundaries and intended lines of work;
(e) to mark such levels, boundaries and lines by placing marks and cutting
trenches; or
(f) to do any other thing;
 132

whenever it is necessary to do so for any of the purposes of this Act or any rule or
regulation made or scheme sanctioned thereunder or any scheme which the Board
intends to frame thereunder.

Provided that –

(a) no such entry shall be made between sunset and sunrise;

(b) no dwelling house, or public building or hut which is used as a dwelling
place, shall be entered into, except with the consent of the occupier thereof, or after
giving the said occupier at least twenty-four hours previous written notice of the
intention to make such entry;
(c) sufficient notice shall in every case be given, to enable the inmates of any
apartment appropriated to women to remove themselves to some part of the premises
where their privacy will not be disturbed;
(d) due regard shall always be had, so far as may be compatible with the
exigencies of the purpose for which the entry is made to the social and religious usages
of the occupants of the premises entered into.
(2) The Chairman or the officer authorised under sub-section (1) shall, at the time
of such entry, pay or tender payment for all necessary damage to be done as aforesaid,
and, in case of dispute as to the sufficiency of the amount so paid or tendered; he shall
at once refer the dispute to the decision of the Board, and such decision shall be final.

CHATER – XI

MISCELLANEOUS
Powers of the Board for facilitating movement of the population

118. With a view to facilitating the movement of the population in and around any
city, town or village, the Board may from time to time, ---

(a) subject to any condition it may think fit to impose ---

(i) guarantee the payment, from the funds at its disposal, of such sums as
it may think fit, by way of interest on capital expenditure on the
construction, maintenance or working of means of locomotion; or
(ii) make such payments as it may think fit from the said funds, by way of
subsidy to persons, undertaking to provide, maintain and work means
of locomotion; or

(b) either singly or in combination with any other person, construct, maintain
and work any means of locomotion, under the provisions of any law applicable thereto;
or
(c) construct or widen, strengthen or otherwise improve bridges:
 133

Provided that no guarantee or subsidy shall be made under clause (a), and no
means of locomotion shall be constructed, maintained or worked under clause (b),
without the sanction of the Government.

Members and Officers to be public servants

119. Every member and every officer of the Board shall be deemed to be a public
servant within the meaning of section 21 of the Indian Penal Code (Central Act 45 of
1860).
Sanction of prosecution

120. No prosecution for any offence punishable under this Act shall be instituted
except with the previous sanction of the Board or any officer authorised by the Board in
this behalf.

Board and Chairman to exercise powers and functions of local authority

121. In any area in respect of which a housing or improvement scheme is in force,

the Government may, by notification in the Official Gazette, direct that subject to such
restrictions and conditions as may be specified in the notification, the Board and the
Chairman shall exercise such of the powers and discharge such of the duties of a local
authority having jurisdiction over the said area as may be specified in the notification.

Supply of documents, etc., to Government

122. The Government may direct the Chairman to forward to it any papers laid
before the Board for consideration at any meeting thereof or to furnish any return,
statement, estimate, statistical or other information, report or any document regarding
any matter under the control of the Board and thereon it shall be the duty of the
Chairman to comply with such directions.

Submission of administration report to Government

123. (1) As soon as may be after the first day of April in every year and not later than
such date as may be fixed by the Government, the Board shall submit to the
Government a detailed report of its administration during the preceding year in such
form as the Government may direct.

(2) The Chairman shall prepare such report and the Board shall consider the
report and forward the same to the Government with its resolutions thereon, if any.
 134

Power of Government to give directions to the Board and local authorities

124. (1) The Government may give the Board such directions as in its opinion are
necessary or expedient for carrying out the purposes of this Act, after giving an
opportunity to the Board to state its objections, if any, to such directions and after
considering the said objections; and it shall thereupon be the duty of the Board to
comply with such directions.
(2) The Government may give any local authority such directions as in its
opinion are necessary or expedient for enabling the Board to carry out the purposes of
this Act, after giving an opportunity to the local authority concerned to state its
objections if any, to such directions, and after considering the said objections; and it
shall thereupon be the duty of such local authority to comply with such directions.

Supersession of the Board

125. (1) If the Government is of opinion that the Board is unable to perform, or has
persistently, made default in the performance of, the duty imposed on it by or under
this Act or has exceeded or abused its powers, it may, by notification in the Official
Gazette, supersede the Board for such period as may be specified in the notification.

Provided that before issuing a notification under this sub-section, the

Government shall by notice require the Board to show cause within such period as may
be specified in the notice why it should not be superseded and shall consider the
explanations and objections, if any, of the Board.

(2) Upon the publication of a notification under sub-section (1) superseding the
Board ---
(a) the Chairman and all the members of the Board shall, as from the date
of supersession, vacate their offices as such;
(b) all the powers and duties which may, by or under the provisions of
this Act, be exercised or performed by or on behalf of the Board and the Chairman,
shall, during the period of supersession, be exercised and performed by such authority
or person as the Government may direct;
(c) all funds and other property vested in the Board shall, during the
period of supersession vest in the authority or person referred to in clause (b); and
(d) all liabilities legally subsisting and enforceable against the Board, shall
be enforceable against the authority or person referred to in clause (b) to the extent the
funds and properties vested in it or him.

(3) If, before the expiration of the period of supersession specified in the
notification issued under sub-section (1), the Government considers that the
supersession of the Board should be continued for a further period, the Government
may, by notification in the Official Gazette, extend the supersession for such further
period as may be specified in the notification.
 135

(4) If the period of supersession is not extended under sub-section (3), the
Government may, on the expiration of the period of supersession specified in the
notification issued under sub-section (1), reconstitute the Board in the manner provided
in section 3.
Dissolution of the Board

126. (1) If the Government is of opinion that the Board has failed to carry out its
functions under this Act or that for any other reason it is not necessary to continue the
Board, it may, by notification in the Official Gazette, dissolve the Board from such date
as may be specified in the notification.
(2) Upon the publication of the notification under sub-section (1) dissolving the
Board ---
(a) the Chairman and all the members of the Board shall, as from the date
of dissolution, vacate their offices as such;
(b) all the powers and duties which may, by or under the provisions of
this Act, be exercised and performed by or on behalf of the Board and the Chairman
shall, as from the date of dissolution, be exercised and performed by the Government or
such authority or person as it may appoint in this behalf;
(c) all funds and other property vested in the Board shall vest in the
Government; and
(d) all liabilities, legally subsisting and enforceable against the Board, shall
be enforceable against the Government to the extent of the funds and properties vested
in it.
The Board to be a local authority under
Central Act 1 of 1894 and Central Act 9 of 1914

127. The Board shall be deemed to be a local authority for the purposes of the Land
Acquisition Act, 1894 (Central Act 1 of 1894), and the Local Authorities Loans Act, 1914
(Central Act 9 of 1914).
Finality of orders

128. Save as otherwise expressly provided in this Act, every order passed or
direction or notice issued by the Government or the Board under this Act shall be final
and shall not be questioned in any suit or other legal proceedings.

Power to make rules

129.(1) The Government may, by notification in the Official Gazette, make rules for
the purpose of carrying into effect 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: -
 136

(a) the term of office and conditions of service of the Chairman and members of
the Board, under sub-section (1) of section 5;
(b) the period for which a non-official member shall be disqualified for
appointment as a member, under sub-section (3) of section 9;
(c) the regulation of appointments by the Board of its officers and employees,
under section 10;
(d) the regulation of delegation by the Chairman of his powers, duties and
functions under section 12;
(e) the manner in which and the purpose for which the Board may associate
with itself any person, under sub-section (1) of section 15;
(f) the regulation of taking part, by any member of the Board or of a Committee
or by any person associated with the Board, in any proceeding of the Board, or
Committee under section 17 relating to a matter in which he is personally interested;
(g) the manner of making or executing contracts or agreements, under section 24;
(h) the form of notice, under sub-section (1) of section 42;
(i) the regulation of the disposal of land by the Board, under section 62;
(j) the other manner of serving notice, under sub-section (1) of section 68 or
sub-section (1) of section 69;
(k) the manner of assessing damages by the competent authority, under
section 69;
(l) the sum to be kept by the Board in current account of a bank, under
sub-section (2) of section 73;
(m) the conditions and limitations subject to which the Board may borrow money
or grant loan, under section 74;
(n) the restrictions and conditions subject to which loans taken by the Board
shall be repaid by it, under section 79;
(o) the rate of interest, under sub-section (2) of section 80;
(p) the form and particulars of estimate, under sub-section (3) of section 85;
(q) the manner of crediting to the capital and revenue accounts the sums
received by the Board and the appropriation of amounts, under sub-sections (2) and (3)
of section 90;
(r) the form in which and the time within which the budget showing the
estimated receipts and expenditure of the Board should be prepared, under section 92
and the number of copies thereof to be forwarded to the Government;
(s) the form of annual statement of accounts including the balance sheet to be
prepared by the Board, under sub-section (1) of section 93;
(t) the form of annual report to be submitted by the Board and the date before
which it shall be submitted under section 94;
(u) the manner of recovering expenses, under sub-section (2) of section 110;
(v) any other matter which has to be, or may be, prescribed by rules.
 137

(3) All rules made under this Act shall, unless they are expressed to come into
force on a particular day, come into force on the day on which they are published in the
Official Gazette.
(4) Every rule made under this Act shall, as soon as may be after they are made, be
laid before the Legislative Assembly, Puducherry, while it is in session for a total period
of fourteen days which may be comprised in one session or in two successive sessions
and if before the expiry of the session in which it is so laid or the session immediately
following, the Assembly makes any modification in the rule or decides that the rule
should not be made, the rules 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.
Power to make regulations

130. (1) The Board may, by notification, in the Official Gazette, make regulations not
inconsistent with this Act and the rules made thereunder, for the purpose of giving
effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power,
such regulations may provided for:-

(a) the terms and conditions of service of officers and other employees of the
Board, under section 11;
(b) the times and places of meetings of the Board including the quorum and the
procedure in regard to transaction of business at such meetings, under sub-section (1) of
section 14;
(c) the duties to be discharged and the functions to be performed by
Committees and the terms and conditions subject to which such duties shall be so
discharged or functions performed, under sub-section (1) of section 16;
(d) the procedure in regard to transactions of business at the meetings of
Committees, under sub-section (2) of section 16;
(e) the duties and conduct of officers and other employees of the Board and of
other persons employed by the Board;
(f) the welfare and recreation of the staff of the Board and the contributions to
be made therefor;
(g) the fees payable for the copies of documents, estimates and plans furnished
by any of its officers and other employees under this Act;
(h) the management, use and regulation of dwellings constructed under any
housing or improvement scheme;
(i) the efficient conduct of the affairs of the Board;
(j) any other matter which has to be, or may be prescribed by regulations.
(3) No regulation on its cancellation or modification shall have effect until the
same shall have been approved and confirmed by the Government.
 138

Power to remove difficulties

131. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order published in the Official Gazette, make such provisions, not
inconsistent with the provisions of this Act, as appear to it to be necessary or expedient
for the removal of the difficulty:
Provided that no such order shall be made after the expiration of two years
from the commencement of this Act.

Amendment of section 11 of Act 13 of 1970

132. (1) In section 11 of the Puducherry Town and Country Planning Act, 1969 (Act
13 of 1970), for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) Every Planning Authority constituted under sub-section (1) shall consist of the
following members, namely: --
(i) A Chairman, being the Chairman of the Housing Board established
under sub-section (3) of section 3 of the Puducherry Housing Board
Act, 1973, to be appointed by the Government;
(ii) the members of the Housing Board referred to in clauses (b) to (h)
(both inclusive), of sub-section (3) of section 3 of the said Act holding
offices as such for the time being; and
(iii) a member to be nominated by the Government from amongst persons
elected as members of the local authority or authorities having
jurisdiction over the planning area."
(2) The provisions of sub-section (1) shall take effect from the date on which the
Housing Board is established under sub-section (1) of section 3 of this Act.
______
 139

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.7 OF 1974

In the Union territory of Puducherry the construction of houses under the various
Housing Schemes is at present being carried out by the Public Works Department, in the
absence of a separate agency to carry out these schemes. The Housing problem has assumed
such serious dimensions that it is felt, that the problem should be tackled by constituting a
Housing Board equipped with the necessary statutory powers of unifying activities relating to
Housing, Town Planning and allied matters.
This Bill conceived on the lines of the Tamil Nadu Act on the subject, provides for the
execution of housing and improvement schemes, for the constitution of a statutory Housing
Board with a view to plan and co-ordinate all housing activities in the State, to ensure
expeditious and efficient implementation of housing or improvement schemes in the State, to
provide technical advice and to scrutinise all projects under housing or improvement schemes
in the State to provide technical advice and to scrutinise all projects under housing or
improvement schemes sponsored or assisted by the Central or State Government.
The Bill seeks to achieve the aforesaid objects.
________

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.12 OF 1980

The Puducherry Housing Board Act enables non-officials to be appointed as Chairman
and Members of the Board. It is felt desirable to include suitable provision in the Act to prevent
disqualification of such chairman and members for being chosen as the members of the
Legislative Assembly by way of abundant caution.

According to the proviso to section 14 of the Puducherry Housing Board Act, the Board
shall meet at least once in every month. It has been decided that it would suffice if the Board
meets at least once in three months. The proviso to section 14 is proposed to be amended
accordingly.
The present Bill seeks to achieve the above objects.
__________

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.11 OF 1987

By virtue of the proviso to section 61 of the Puducherry Housing Board Act, 1973, the
Puducherry housing Board is conferred with the power to purchase, lease or exchange without
the previous approval of the Government, any land by negotiation and agreement with the
owner of that land, if the value of such land does not exceed ten thousand rupees.

Since the cost of the land escalated manifold in the part few years, it is not practically
possible for the Board to exercise its powers to purchase lands within the above limit by
negotiation and agreement. It is therefore proposed to enhance the monetary limit prescribed in
the proviso to section 61 of the said Act from ten thousand rupees to five lakh rupees.

The Bill seeks to achieve the above object.

_______
 140

THE PUDUCHERRY OCCUPANTS OF KUDIYIRUPPU (CONFERMENT

OF OWNERSHIP) ACT, 1973

(No. 8 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Act not to apply in certain cases
3. Definitions
4. Occupant of kudiyiruppu to become owner
4.A. Provision of alternative site in certain cases
5. Decision by authorised officer
6. Appeal
7. Right to receive amount
8. Amount
9. Appeal
10. Apportionment of amount
11. Payment of amount
12. Second Appeal to High Court in certain cases
13. Power of authorised officer to call for information
14. Mode of payment of amount
15. Omitted
16. Issue of title deed
17. Prohibition of transfer of kudiyiruppu or superstructure
18. Transitional provision in regard to certain liabilities
19. Power to acquire land used for common purposes
20. Service of notices and orders
21. Power of entry
22. Penalties
23. Offences by companies
24. Prosecution and trail of offence
25. Bar of jurisdiction of Civil Courts
26. Authorised officer, etc., to be public servants
27. Protection of action taken in good faith
28. Act to override other laws
29. Power to make rules

THE SCHEDULE
_____
 141

THE PUDUCHERRY OCCUPANTS OF KUDIYIRUPPU (CONFERMENT

OF OWNERSHIP) ACT, 1973

(No. 8 of 1974)
(21-8-1974)
AN ACT

to provide for the conferment of ownership rights on occupants of kudiyiruppu

in certain regions in the Union territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-fourth

Year of the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Occupants of Kudiyiruppu

(Conferment of Ownership) Act, 1973.
(2) It extends to the regions known as Puducherry, Karaikal and Yanam in the
Union territory of Puducherry.
+ (3) It shall come into force on such date as the Government may, by notification
in the Official Gazette, appoint.

Act not to apply in certain cases

2. Nothing in this Act shall apply to the lands belonging to or vested in the
Government of the Union territory of Puducherry, the Government of India, the
Government of any State in India, a local authority or a corporation owned or
controlled by any of the said Governments or authority.

Definitions

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

(1) "agricultural labourer" means a person whose principal means of livelihood is

the income he gets as wages for his manual labour on agricultural land;

+ This Act came into force in the regions known as Puducherry, Karaikal and Yanam in the Union Territory of
Puducherry w.e.f 01.12.1974 vide Notification published in the EG. No.150 dt. 28.11.1974.
 142

(2) "agricultural land" means any land used for any of the following purposes,
namely:-
(a) horticulture;
(b) the raising of crops, grass or garden produce;
(c) grazing;
(d) the raising of manure crops;
(e) dairy farming;
(f) poultry farming;
(g) livestock breeding;
(h) growing of trees; and

(i) includes any land used for any purposes subservient to the
above purposes, any forest land, pasture land, plantation,
orchard and tope, but

(ii) does not include house-site or land used exclusively for non-
agricultural purposes;

(3) "agriculturist" means a person who cultivates agricultural land by the

contribution of his own manual labour or of the manual labour of any member of his
family;

(4) "authorised officer" means any Gazetted Officer authorised by the

Government by notification in the Official Gazette to exercise the powers conferred on,
and discharge the duties imposed upon, the authorised officer under this Act, for such
area as may be specified in the notification;

(5) "Court" means the Court of Subordinate Judge having jurisdiction and if
there are more than one such Court, the Court of the Principal Subordinate Judge;

(6) "Government" means the Administrator of the Union territory of

Puducherry appointed under article 239 of the Constitution;

(7) "kudiyiruppu" means the site of any dwelling house or hut occupied, either
as tenant or as licensee, by any agriculturist or agricultural labourer and includes such
other area adjacent to the dwelling house or hut as may be necessary for the convenient
enjoyment of such dwelling house or hut.
 143

+[Explanation-I.
-- It shall be presumed that any person occupying the
kudiyiruppu is an agricultural labourer or an agriculturist, until the contrary is proved.

Explanation-II. – For the purpose of determining whether any area adjacent to

the dwelling house or hut is necessary for the convenient enjoyment of such dwelling
house or hut, the area which the agriculturist or agricultural labourer had been enjoying
immediately before the 27th day of March 1972, and such other factors as may be
prescribed shall be taken into account].

(8) "person interested", in relation to any kudiyiruppu or superstructure

thereon, includes any person claiming, or entitled to claim, an interest in the amount
payable on account of the vesting of that kudiyiruppu or superstructure in the occupant
of the kudiyiruppu;

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

+[
(9-A) "rural area" means any area declared by the Government, by notification
in the Official Gazette, to be a rural area having regard to its population, development
and such other relevant factors as the circumstances of the case may require].

(10) "Schedule" means the Schedule appended to this Act;

(11) "tenant" means any person who has paid or has agreed to pay rent or other
consideration for his being allowed by another to enjoy the land of the latter under an
agreement, express or implied, and includes his heirs and legal representatives;

+[ (11-A) "urban area" means any area other than a rural area];

(12) "vested kudiyiruppu or superstructure" means the kudiyiruppu or the

superstructure which has vested absolutely in the occupant of the kudiyiruppu +[under
the provisions of this Act].

+ Amended by Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
 144

Occupant of kudiyiruppu to become owner

4. +[(1) Subject to the provisions of section 4A, any agriculturist or any agricultural
labourer, who was occupying any kudiyiruppu on the 27th day of March, 1972, either as
tenant or as licensee, shall, with effect from the commencement of this Act, be deemed
to have become the owner thereof and such kudiyiruppu shall vest in him free from all
encumbrances:

Provided that such agriculturist or agricultural labourer does not already own,
within any area to which this Act extends, a dwelling house or hut erected on a site, or a
housesite, which is eighty-four square metres or more in extent:

Provided further that the extent of the kudiyiruppu which shall so vest in any
agriculturist or agricultural labourer shall be such (which in no case shall exceed three
ares in rural areas and two ares in urban areas) as may be determined by the authorised
officer after giving a reasonable opportunity to the occupant of the kudiyiruppu and the
person interested, of being heard in the matter].

(2) Where, in the case of an occupant of kudiyiruppu referred to in sub-section

(1), the superstructure belongs to any person other than such occupant, such
superstructure shall also, with effect from the date of commencement of this Act, vest in
such occupant absolutely free from all encumbrances.

Provision of alternative site in certain cases

+[4-A. (1) (a) Where on application by the owner of any land, the authorised officer
is satisfied that the kudiyiruppu referred to in sub-section (1) of section 4 (hereinafter
referred to as the original kudiyiruppu) is so located as to cause inconvenience for the
convenient enjoyment of the land as a whole by such owner, the authorised officer,
may, by order, permit the shifting of the kudiyiruppu to another part of such land or to
an alternative site possessed by such owner, within such distance and within such
period as may be prescribed.

(b) The alternative site shall satisfy the following conditions, namely:-

(i) it shall be fit for erection of a dwelling house or hut, if there is

not already any dwelling house or hut on the site,

+ Amended by Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
 145

(ii) its extent shall not be less than the extent of the original
kudiyiruppu, subject to a maximum of three ares in rural areas
and two ares in urban areas, and
(iii) such other conditions as may be prescribed.

(2) The authorised officer, while granting permission under sub-section (1),
shall also direct the payment, by the owner to the agriculturist or agricultural labourer
occupying the original kudiyiruppu, within such period as may be prescribed, of such
costs as may be considered by the authorised officer to be reasonable for shifting of the
residence to the alternative site including the cost for erecting a superstructure on the
said site and the authorised officer shall, before granting permission under sub-section
(1), satisfy himself that the conditions specified in clause (b) of sub-section (1) are
complied with:

Provided that before granting such permission, the authorised officer shall give
an opportunity of being heard to the agriculturist or agricultural labourer concerned.

(3) If such owner fails to provide the alternative site as permitted by the
authorised officer within the prescribed period or if such owner fails to comply with
any direction given under sub-section (2) in regard to payment of costs, the agriculturist
or agricultural labourer shall continue to be the owner of the original kudiyiruppu
under sub-section (1) of section 4.

(4) In such owner provides an alternative site in pursuance of the permission

granted under sub-section (1), the agriculturist or agricultural labourer concerned shall
be given an opportunity to occupy the alternative site within such period as may be
prescribed and he shall be deemed to have become the owner of such kudiyiruppu from
the date on which he so occupies the same and such alternative kudiyiruppu shall with
the superstructure thereon, if any, with effect from such date, be deemed to have vested
in him absolutely free from all encumbrances and the site of the original kudiyiruppu
shall revert to the owner.

(5) The amount payable under clause (a) of sub-section (2) of section 8 shall be
determined for the kudiyiruppu deemed to have vested under sub-section (4) and in
case payment has already been made for the original kudiyiruppu, the difference, if
any, between the amount already paid for the original kudiyiruppu and the payable for
the kudiyiruppu deemed to have vested shall be paid to, or collected from, the owner,
as the case may be.
 146

(6) (a) Where any agriculturist or agricultural labourer fails or refuses to shift to
the alternative site provided by the owner in pursuance of a permission granted under
sub-section (1) within such period as may be prescribed, such agriculturist or
agricultural labourer shall not be entitled to the benefits of this Act but shall continue to
be entitled to the protection under the Puducherry Occupants of Kudiyiruppu
(Protection from Eviction) Act, 1970 (Puducherry Act 11 of 1971).

(b) The amount, if any, paid by the owner to such agriculturist or

agricultural labourer under sub-section (2) shall, on his failure to shift the original
kudiyiruppu to the alternative site, be recovered from him as if it were an arrear of land
revenue and shall be refunded to the owner within such period and in such manner as
may be prescribed].

Decision by authorised officer

5. +[ (1) If any dispute arises as to whether---

(a) any person is an agriculturist or an agricultural labourer; or

(b) any land is an agricultural land; or

(c) any site is a kudiyiruppu; or

(d) any area adjacent to a dwelling house or hut is necessary for the
convenient enjoyment of such dwelling house or hut; or

(e) any agriculturist or agricultural labourer was occupying any

kudiyiruppu on the 27th day of March, 1972; or

(f) any agriculturist or agricultural labourer is having any house or

housesite or hut of his own,

such dispute shall be decided by the authorised officer].

(2) In deciding the dispute under sub-section (1) the authorised officer shall
follow such procedure as may be prescribed.

+ Amended by Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
 147

Appeal

6. (1) Any person aggrieved by the decision of the authorised officer + [under
section 4A or section 5] may, within such period as may be prescribed, appeal to the
Collector, or such other officer as may be authorised by the Government in this behalf.

(2) In deciding the appeal under sub-section (1), the Collector, or the officer
referred to in sub-section (1), shall follow such procedure as may be prescribed.

Right to receive amount

7. Every person having any interest in any vested kudiyiruppu or superstructure

shall be entitled to receive and be paid the amount as provided hereunder.

Amount

8. (1) The amount payable in respect of any vested kudiyiruppu or superstructure

shall be as specified in the Schedule.

(2) (a) The authorised officer shall, after holding an inquiry in the prescribed
manner, determine by order the amount payable under sub-section (1) and publish the
said order in the Official Gazette.

(b) A copy of the said order shall be communicated to the person who
immediately before the date of commencement of this Act owned the kudiyiruppu or
superstructure and to every person interested therein.

(3) Where the owner of the kudiyiruppu and the owner of the superstructure
on such kudiyiruppu are different, the authorised officer shall apportion the amount
between the owner of the kudiyiruppu and the owner of the superstructure.

+ Amended by Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
 148

Appeal

9. Any person who does not agree to the amount as determined by the authorised
officer under sub-section (2) of section 8 may prefer an appeal to the Court within such
period as may be prescribed.

Apportionment of amount

10. (1) Where several persons claim to be interested in the amount determined under
sub-section (2) of section 8, the authorised officer shall determine:-

(a) the persons who, in his opinion, are entitled to receive such amount; and
(b) the amount payable to each of the persons referred to in clause (a).

(2) If any dispute arises as to the apportionment of the amount or any part thereof
or as to the persons to whom the same or any part thereof is payable, the authorised
officer may refer such dispute to the decision of the Court and the Court shall, in
deciding any such dispute, follow as far as may be the provisions of Part III of the Land
Acquisition Act, 1894 (Central Act 1 of 1894).

Payment of amount

11. +[(1) After the amount has been determined, the Government shall, pay it to the
persons entitled thereto].

(2) If the persons entitled to the amount do not consent to receive it or if the
authorised officer is satisfied that the Kudiyiruppu or superstructure in respect whereof
the amount is to be awarded belonged to any person who had no power to alienate the
same, or if there is any dispute as to the title to receive the amount, or as to the
apportionment of it, the authorised officer shall deposit the amount in the Court, and
the Court shall deal with the amount so deposited in the manner laid down in section
32 and section 33 of the Land Acquisition Act, 1894.

+ Amended by Act 5 of 1983 and came into force w.e.f 04.06.1983.

 149

Second Appeal to High Court in certain cases

12. Subject to the provisions of the Code of Civil Procedure, 1908 applicable to
appeals from original decrees, and notwithstanding anything to the contrary in any
enactment for the time being in force, a second appeal shall only lie to the High Court
from any decision of the Court under this Act, if the amount as determined by the
authorised officer exceeds such amount as may be prescribed.

Power of authorised officer to call for information

13. (1) The authorised officer may, for the purpose of carrying out the provisions of
this Act, by order require any person to furnish such information in his possession
relating to any vested kudiyiruppu or superstructure.

(2) The authorised officer shall, while holding an inquiry under this Act, have all
the powers of a Civil Court, while trying a suit under the Code of Civil Procedure, 1908,
in respect of the following matters, namely: --

(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) requiring the discovery and production of any document;
(c) receiving of evidence on affidavits;
(d) requisitioning any public record from any court or office;
(e) issuing commissions for the examination of witness.

Mode of payment of amount

14. (1) The amount as finally determined under this Act shall, within such period
as may be prescribed, be paid either in cash or in bonds or partly in cash and partly in
bonds as the Government may prescribe.

(2) (a) The bonds shall be issued on such terms and carry such rate of interest
as may be prescribed.
 150

(b) The interest shall be paid in the case of any kudiyiruppu or

superstructure with effect from the date of vesting *[under the provisions of this Act].

+[15. Omitted]

Issue of title deed

16. +[The authorised officer shall issue a title deed in such form and imposing such
conditions as may be prescribed to every occupant of Kudiyiruppu in whom the
kudiyiruppu and the superstructure, if any, has vested under the provisions of this
Act].

Prohibition of transfer of kudiyiruppu or superstructure

17. +[(1) The rights of a person in whom the kudiyiruppu or superstructure has
vested under the provisions of this Act are heritable but not alienable:

Provided that such person or his heir or legal representative may surrender at
any time, the kudiyiruppu with or without superstructure, as the case may be, free from
all encumbrances to the Government.

(2) Any transfer made in contravention of sub-section (1) shall be void and the
kudiyiruppu with or without superstructure, as the case may be, so transferred shall
vest in the Government free from all encumbrances from the date of such transfer and
no claim from the transferee shall lie as against Government in respect of such
kudiyiruppu with superstructure, if any.

(3) Where any kudiyiruppu with or without any superstructure, as the case
may be, is surrendered under the proviso to sub-section (1), any amount which the
original occupant or heir or legal representative or such person has already paid to the
Government before the date of publication of the Puducherry Occupants of
Kudiyiruppu (Conferment of Ownership) (Amendment) Act, 1982 shall be refunded
within such period and in such manner as may be prescribed to the person entitled to
receive it.

* Amended by Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
+ Amended by Act 5 of 1983 which came into force w.e.f 04.06.1983.
 151

(4) The kudiyiruppu with or without superstructure, as the case may be,
surrendered to or vesting in the Government, under the proviso to sub-section (1) or
under sub-section (2) may be allotted to any agriculturist or agricultural labourer by the
Government and on such allotment, the kudiyiruppu with or without superstructure, as
the case may be, shall vest in such agriculturist or agricultural labourer and the
provisions of this Act shall apply to such vesting.

(5) In the event of the death of any person in whom the kudiyiruppu, with
superstructure, if any, had vested under the provisions of this Act, the person to whom
the title of the deceased may be transferred as heir or other-wise shall give notice of
such transfer to such officer and in such form as may be prescribed, within three
months from the date of death of the deceased.

(6) The person to whom the title passes shall, if so required, be bound to
produce before the officer prescribed under sub-section (5) any document evidencing
such succession].

Transitional provision in regard to certain liabilities

18. (1) All claims and liabilities in respect of the kudiyiruppu or the superstructure
enforceable immediately before the date of commencement of this Act +[or the date of
vesting of the kudiyiruppu or the superstructure, as the case may be] against any
person interested shall, on or after that date, be set off against the amount payable to the
person interested under this Act to the same extent to which such claims and liabilities
were enforceable against such person immediately before such date.

(2) (a) A court shall, on or after the date of commencement of this Act +[or the
date of vesting of the kudiyiruppu or the superstructure, as the case may be] order or
continue execution in respect of any decree or order passed against the person
interested in conformity with the provisions of sub-section (1) only as against the
amount payable to such person.

(b) No court shall, in enforcing any claim or liability against the person
interested in respect of any kudiyiruppu or superstructure, allow interest at a rate
exceeding six per cent per annum simple interest for any period after the date of the
commencement of this Act.

+ Amended vide Act 5 of 1983 and shall be deemed to have come into force w.e.f 01.12.1974.
 152

Power to acquire land used for common purposes

19. (1) Where the Government is satisfied that any land is used by the occupants of
kudiyiruppu immediately before the date of commencement of this Act for a common
purpose, it may acquire the land by publishing in the Official Gazette a notification to
the effect that it has decided to acquire the land in pursuance of this section:

Provided that, before publishing a notification, the Government may call upon
the owner or any other person, who, in the opinion of the Government, may be
interested in such land, to show cause why it should not be acquired; and after
considering the cause, if any, shown by the owner or any other person interested in the
land, the Government may pass such orders as it deems fit.

(2) When a notification under sub-section (1) is published in the Official

Gazette, the land to which the said notification relates shall, on and from the date on
which the said notification is so published, vest absolutely in the Government free from
all encumbrances.

(3) The Government shall make available the land acquired under this section
to be used by the occupants of kudiyiruppu for the same common purpose for which it
was used immediately before the date referred to in sub-section (2).

(4) Every person having any interest in any land acquired under this section
shall be entitled to receive and be paid an amount as specified in the Schedule.

(5) Save as otherwise provided in this section, the provisions contained in

sections 9 to 14 (both inclusive), 18, 20 to 22 (both inclusive) shall apply to the land
acquired under this section as they apply to the vested kudiyiruppu or superstructure.

Explanation. – For the purposes of this section, "common purpose" includes the
use of land for road, pathway, threshing-floor and cattle stand.

Service of notices and orders

20. (1) save as otherwise provided in this Act and subject to the provisions of this
section and of any rule made in this behalf, every notice issued or order made under
this Act shall :-
 153

(a) in the case of any notice or order of a general nature or affecting a class of
persons, be published in the Official Gazette;

(b) in the case of any notice or order affecting any company or other body
corporate or any firm, be served in the manner provided for the service of summons in
rule 2 of Order XXIX or rule 3 of Order XXX, as the case may be, in the First Schedule to
the Code of Civil Procedure, 1908; and

(c) in the case of any notice or order affecting an individual person (not being a
company or other body corporate or firm),be served on such person –

(i) by delivering or tendering it to that person; or

(ii) if it cannot be so delivered or tendered, by delivering or tendering it to

the head of the office in which such person is employed, or to any adult
male servant of such person, or to any adult male member of the family
of such person, or by affixing a copy thereof on the outer door or on
some conspicuous part of the premises in which that person is known to
have last resided or carried on business or personally worked for gain;
or

(iii) failing service by any of the means aforesaid, by post or by affixing a

copy of the said notice or order on some conspicuous part of the
kudiyiruppu or superstructure to which it relates.

(2) Where the notice or order cannot be served without undue delay, due to
any dispute in the ownership of the kudiyiruppu or the superstructure or due to the
person to whom the notice or order is intended being not readily traceable, the notice or
order may be served by publishing it in the Official Gazette, and where possible by
affixing a copy thereof on some conspicuous part of the kudiyiruppu or superstructure
to which it relates.
Power of entry

21. It shall be lawful for any person authorised by the authorised officer in this
behalf to enter into or upon any kudiyiruppu or superstructure with or without
assistants for purposes of giving effect to the provisions of this Act.

Penalties

22. Any person who obstructs any officer or person authorised by the authorised
officer to enter into or upon any kudiyiruppu or superstructure or molests such officer
or person after such entry, shall be punishable with fine which may extend to one
thousand rupees.
 154

Offences by companies

23. (1) If a person committing an offence under this Act is a company, every
person, who, at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of the business of the company as well as
the company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:

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

(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 shall also be deemed to be
guilty of that offence and shall be liable to be proceeded against and punished
accordingly.

Explanation:- For the purpose of this section,--

(a) "Company" means a body corporate and includes a firm or other

association of individuals; and

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

Prosecution and trail of offence

24. (1) No prosecution for any offence punishable under this Act shall be instituted
except with the previous sanction of the authorised officer.

(2) No court inferior to that of a salaried magistrate of the first class shall try
any offence punishable under this Act.

Bar of jurisdiction of Civil Courts

25. Save as otherwise expressly provided in this Act, no civil court shall have
jurisdiction in respect of any matter which the Government or the authorised officer is
empowered by or under this Act to determine and no injunction shall be granted by any
court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
 155

Authorised officer, etc., to be public servants

26. The authorised officer and any person authorised by him under this Act shall be
deemed to be public servants within the meaning of section 21 of the Indian Penal
Code.
Protection of action taken in good faith
27.(1) No suit, prosecution or other legal proceeding shall lie against the Government
or any person exercising any power or discharging any functions or performing any
duties under this Act for anything which is in good faith done or intended to be done in
pursuance of this Act or of any rule or order made thereunder.
(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done or
intended to be done in pursuance of this Act or of any rule or order made thereunder.

Act to override other laws

28. The provisions of this Act and the rules made thereunder shall have effect
notwithstanding anything inconsistent therewith contained in any other law for the
time being in force, or any custom, usage, or contract or decree or order of a court or
other authority.
Power to make rules
29. (1) The Government may make rules for carrying out all or any of 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 distance from the existing kudiyiruppu and the period within
which an alternative site may be provided under sub-section (1) of section 4A, the other
conditions that such site shall satisfy and the period within which costs determined by
the authorised officer under sub-section (2) of that section shall be paid, the period
within which the agriculturist or agricultural labourer shall shift to the alternative site
and the period within which and the manner in which refund shall be made under sub-
section (6) of that section];

(aa) the procedure to be followed by the authorised officer in deciding a

dispute under sub-section (1) of section 5;
(b) the period within which an appeal may be preferred under sub-section (1)
of section 6 to the Collector or such other officer as may be authorised by the
Government in this behalf and the procedure to be followed by such Collector or other
officer in deciding such appeal;
(c) the manner in which an inquiry may be held by the authorised officer under
section 8;

+ Amended by Act 5 of 1983 and shall be deemed to have came into force w.e.f 1.12.1974.
 156

(d) the period within which an appeal may be preferred to the Court under
section 9;

(e) the maximum amount in respect of which a second appeal may lie to the
High Court under section 12;

(f) the period within which, and the terms and the rate of interest at which,
amount is payable under section 14 to the persons interested;

+[(g) omitted]

+[(h) omitted]

(i) the form of title deed to be issued under section 16 and the conditions
governing it;

++[(j)
the period within which and the manner in which the amount shall be
refunded under sub-section (3) of section 17 and the form in which and the officer to
whom a notice is to be given under sub-section (5) of that section].

(k) the fee payable in respect of any appeal, application or statement under this
Act;
(l) any other matter which has to be, or may be, prescribed.

(3) Every rule made under this Act shall, as soon as may be after they are made, be
laid before the Legislative Assembly of Puducherry, while it is in session for a total
period of fourteen days which may be comprised in one session or in two successive
sessions, and if, before the expiry of the session in which it is so laid or the session
immediately following, the Legislative Assembly makes any modification in the rule or
decides that any such rule should not be made, that 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.

+ Amended by Act 5 of 1983 which came into force w.e.f 04.06.1983.

++ Amended by Act 5 of 1983 which came into force w.e.f 1.12.1974.
 157

THE SCHEDULE

[See sections 8 (1) and (19) (4)]

1. The amount payable in respect of the kudiyiruppu or the land shall be one
hundred times the survey assessment on the kudiyiruppu or the land, as the case may
be:
Provided that where the kudiyiruppu or the land forms part of a survey field
and is not separately assessed to revenue, the amount payable for such kudiyiruppu or
land shall be deemed to be one hundred times such proportion of the survey
assessment as the part bears to the entire survey field:
Provided further that where the survey field in which the kudiyiruppu or land
exists is unassessed, the amount shall be determined with reference to the highest rate
of survey assessment of the village, and where no such rate exists, the highest rate of
survey assessment of the village situated nearest to the kudiyiruppu, or land, as the
case may be.
Explanation. --- For the purposes of this paragraph, "survey assessment" means
the land tax levied in accordance with the Deliberation of the Counseil General dated
the 24th December, 1933 enforced by the Arrete dated the 22nd August, 1934 and
includes fifty per cent surcharge levied pursuant to the Deliberation dated the 20th
September, 1950 enforced by the Arrete dated the 4th December, 1950.

2. The amount payable in respect of the superstructure shall be the market value of
such superstructure.
Explanation.—For the purpose of this schedule, –

(i) "kudiyiruppu" means the kudiyiruppu vested in the occupant of

kudiyiruppu +[under the provisions of this Act];
(ii) "land" means the land acquired under section 19, and
(iii) "superstructure" means the superstructure on the kudiyiruppu vested
in the occupant of kudiyiruppu +[under the provisions of this Act].

______

+ Amended vide Act 5 of 1983 and shall be deemed to have came into force w.e.f 1.12.1974.
 158

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.8 OF 1974

The Puducherry Occupants of Kudiyiruppu (Protection from Eviction) Act, 1970

(Act 4 of 1971) is already in force in Puducherry, Karaikal and Yanam regions of this
Union Territory. The Act provides for prevention from eviction of homestead lands by
the landlords, pursuant to the policy of this Government to bring forward progressive
Land Reforms Measures with a view to usher in a socialist society, the Chief Minister,
during the Budget Speech of the Legislative Assembly on 27-3-72, announced, among
others, the proposal to confer rights of ownership to the occupants of kudiyiruppu in
Puducherry, Karaikal and Yanam regions on the pattern of the Tamil Nadu Occupants
of Kudiyiruppu (Conferment of Ownership) Act, 1971. Under the proposal, any
agriculturist or agricultural labourer who not having a dwelling house or house site or a
hut of his was occupying on 27-3-72 any kudiyiruppu either as tenant or as licensee,
shall, with effect from the date of commencement of the Bill, be the owner of such
kudiyiruppu and such kudiyiruppu shall vest in him free from all encumbrances.

The present Bill seeks to achieve the above object.

______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.5 OF 1983

The Puducherry Occupants of Kudiyiruppu (Conferment of ownership) Act,

1973 was intended to make the agriculturists and agricultural labourers the owners of
the houses occupied by them as on 27-3-1972 provided that they do not have any house
or hut of their own. The principal Act permits by implication alienation of kudiyiruppu.
But on the instructions from the Home Ministry and also in accordance with the
recommendations of the State Housing Ministers’ Conference held at Srinagar in 1973, a
policy decision was taken to prohibit alienation of kudiyiruppu.

The Tamil Nadu Government had also introduced certain amendments to its
kudiyiruppu (Conferment of ownership), Act. Since our Act is also based on the Tamil
Nadu Act, such amendments are also sought to be incorporated in our Act. The
Government of India also have agreed to the proposal of this Administration for
waiving the amount to be collected from the beneficiaries. All these measures have been
incorporated in the draft Bill. This consolidated amendment thus seeks to achieve the
following objects: --
 159

(i) to enable the landowner to provide alternative site where the vesting of any
kudiyiruppu in any kudiyiruppudar may cause inconvenience for the convenient
enjoyment of the land as a whole by the landowner subject to the conditions that the
alternative site should be of the same extent of the existing site and that a reasonable
cost for shifting and for erecting the superstructure in the alternative site as fixed by the
Authorised Officer should be borne by the landowner;

(ii) to recover the amount under the Revenue Recovery Act if the
kudiyiruppudar refuses or fails to move to the alternative site after having received
amount from the owner and to make him not eligible to get the benefit of this Act, but
continue to be entitled to the protection under the Puducherry Occupants of
Kudiyiruppu (Protection from Eviction) Act, 1970;

(iii) to amplify section 5 of the Act to enable the Authorised Officer to decide
whether a person is an agriculturist agricultural labourer, whether any land is an
agricultural land, etc.;

(iv) to enable the Government to define the terms “rural area” and “urban area”
by notifications issued from time to time;

(v) to define the term owning a house-site as “owing a house site of 84 square
metres or more in extent within any area to which the Act applies”;

(vi) to delete section 15 of the Act so as to issue the title deed to the beneficiary
under the Act, free of cost;

(vii) to amend section 17 of the Act so as to make the conferment of ownership

under the Act heritable but not alienable;

(viii) to permit the kudiyiruppudar or his heir to surrender the kudiyiruppu to

Government and to receive back the amount if any already paid to Government;

(ix) to enable the Government to take the kudiyiruppu on violation of conditions

without refunding any amount paid to the Government and to regrant it to such person
as may be prescribed; and

(x) to provide a period of three months to give notice to the specified officer
about the death of any person in whom the kudiyiruppu had vested under the Act.

________
 160

THE PUDUCHERRY LAND REFORMS (FIXATION OF CEILING ON LAND)

ACT, 1973

(No.9 of 1974)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER – I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
3. Act to override other laws, contracts, etc.

CHAPTER – II
FIXATION OF CEILING ON LAND HOLDINGS
4. Ceiling area
5. Basis of calculation of the extent of land held by the founder of a public trust
6. Ceiling on holding land
7. Furnishing of return by persons holding land in excess of ceiling area
8. Collection of information
9. Preparation and publication of draft statement as regards land in excess of the
ceiling area
10. Authorised officer to decide question of title in certain cases
11. Publication of final statement
12. Exclusion of certain land from calculating of ceiling area
13. Amendment of final statement in certain cases
14. Powers to rectify bona fide mistakes and clerical errors
15. Possession of land held by possessory mortgagee to revert to the possessory
mortgagor in certain cases
16. Possession of land held by tenant to revert to the land owner in certain cases
17. Acquisition of surplus land
18. Direction by Land Commissioner
CHAPTER – III
CEILING ON FUTURE ACQUISITION AND RESTRICTION ON CERTAIN
TRANSFERS
19. Declaration to be made before the registering authority in certain cases
20. Penalty for future acquisition in contravention of section 6
21. Ceiling on future acquisition by inheritance bequest or by sale in execution of
decree, etc.
22. Restriction on transfer of land by a person
 161

CHAPTER – IV
PERMISSION BY GOVERNMENT TO HOLD LAND IN EXCESS OF CEILING AREA
BY INDUSTRIAL OR COMMERCIAL UNDERTAKINGS
23. Industrial or commercial undertakings to apply to Government for permission to
hold-land in excess of ceiling area.
CHAPTER – V
PAYMENT OF AMOUNT FOR ACQUIRING SURPLUS LAND
24. Determination of amount for land acquired by Government
25. Claims of mortgagee or charge holder on surplus land
26. Claims of limited owner on surplus land
27. Claims of maintenance holder on surplus land
28. Payment of amount to certain tenants
29. Manner of payment of amount
CHAPTER – VI
CULTIVATING TENANTS CEILING AREA
30. Definition
31. Person holding land as cultivating tenant to furnish return in certain cases
32. Authorised officer to take possession of land in excess of cultivating tenant’s ceiling
area
33. Liability of Government to pay rent
34. Authorised officer to distribute possession of land
34 A. * [Power of the Government to reserve land for other public purposes
35. Authorised officer empowered to summarily dispossess persons in certain cases
36. Amount payable to tenants in certain cases
37. Certain claims for arrears of rent not to be enforced against Government
38. Land owner’s right to resume possession under Puducherry Act 9 of 1971 not
affected
39. Furnishing of return on acquisition by lease of any land in excess of cultivating
tenant’s ceiling area
40. Effect of certain Acts
41. Provisions of this Chapter to override other provisions
CHAPTER – VII
42. Exemptions
43. Act not to apply to land held by sugarcane factory
CHAPTER – VIII
LAND TRIBUNALS
44. Constitution of Land Tribunals
45. Jurisdiction and powers of Land Tribunals
CHAPTER – IX
APPEALS AND REVISION
46. Appeal to Land Tribunal
47. Appeal to High Court
48. Limitation Act to apply to appeal under section 46 or 47
 162

49. Revision by Land Commissioner

50. Revision by High Court
51. Power to Stay
CHAPTER – X
PENALTIES AND PROCEDURE
52. Penalty for failure to furnish return
53. Penalty for failure to furnish information under section 68
54. Penalty for furnishing false return or information
55. Penalty for making false declaration under section 19
56. Penalty for acquisition by lease or possessory mortgage in excess of ceiling area
57. Penalty for contravention of any lawful order
58. Penalty for cutting trees or for removing any machinery, etc.
59. Offences by companies
60. Cognizance of offences
CHAPTER – XI
DISPOSAL OF LAND ACQUIRED BY THE GOVERNMENT UNDER THIS ACT
61. Disposal of Land acquired by Government
CHAPTER – XII
MISCELLANEOUS
62. Conversion of one kind of land into another not to affect ceiling area in certain cases
63. Decrease in number of members of family not to affect ceiling area
64. Power of Government to issue orders and directions to the authorised officer, etc.
65. Transfer of any application or other proceeding from one authorised officer to
another
66. Returns and reports
67. Authorised Officer empowered to obtain information from court, etc.
68. Authorised officer empowered to obtain information from persons
69. Costs
70. Power to enter upon land
71. Indemnity
72. Bar of jurisdiction of Civil Courts
72. A. Parties not to be represented by legal practitioners before the authorised officer
73. Court fees
74. Delegation of powers
75. Power to remove difficulties
76. Powers to make rules
77. Savings

SCHEDULE – I

SCHEDULE – II
______
 163

THE PUDUCHERRY LAND REFORMS (FIXATION OF CEILING ON LAND)

ACT, 1973

(No.9 of 1974)
(22-9-1974)
AN ACT

to provide for the fixation of ceiling on agricultural land holdings and for certain
other mattes connected therewith in the regions of Puducherry and Karaikal.

BE it enacted by the Legislative Assembly of Puducherry in the Twenty-fourth

Year of the Republic of India as follows: -

CHAPTER – I

PRELIMINARY
Short title, extent and commencement

1. (1) This Act may be called the Puducherry Land Reforms (Fixation of Ceiling on
Land) Act, 1973.
(2) It extends to the regions of Puducherry and Karaikal of the Union territory of
Puducherry.
+ (3) It shall come into force at once.

Definitions

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

(1) "agriculture" includes –

(a) horticulture;
(b) the raising of crops, grass or garden produce;
(c) the use by an agriculturist of land held by him, or part thereof, for
grazing;
(d) the use of any land for the purpose of raising manure crops;
(e) dairy farming;
(f) poultry framing;

+ This Act came into force w.e.f 22.09.1974.

 164

(g) livestock breading;

(h) growing of trees;

and "agricultural" shall be construed accordingly;

(2) "agricultural company" means any company formed for the purpose of
carrying on any business that has for its main object the acquisition of gain by the
company from agricultural land;

(3) "agricultural year" means the year commencing on the 1st April in any year
and ending with the 31st March of the year next succeeding, provided that the Collector
may, in respect of any crop, area or category of land, by notification, specify the year
between such other dates, as he may deem fit, as an agricultural year;

(4) "appointed day" means the 24th day of January, 1971;

(5) "authorised officer" means any Gazetted Officer authorised by the

Government by notification to exercise the powers conferred on, and discharge the
duties imposed upon, the authorised officer under this Act for such area as may be
specified in the notification:

(6) "ceiling area" means the extent of land which a person is entitled to hold
under section 4.

(7) "company" means a company as defined in section 3 of the Companies Act,

1956;

(8) "creditor" means a secured creditor and includes any decree-holder who has
obtained an attachment of land in execution of a decree or order;

(9) "cultivating tenant" except in Chapter VI means a person who contributes his
own physical labour or that of any member of his family in the cultivation of any land
belonging to another, under an agreement express or implied on condition of paying
rent therefor in cash or in kind or delivering or receiving a share of the produce and
includes –

(i) any such person who continues in possession of the land after the
determination of the agreement;

(ii) the heir of such person, if the heir contributes his own physical labour or
that of any member of his family in the cultivation of such land;
 165

(iii) a sub-tenant if he contributes his own physical labour or that of any

member of his family in the cultivation of such land;

(iv) any such sub-tenant who continues in possession of the land

notwithstanding that the person who sub-let the land to such sub-tenant
ceases to have the right to possession of such land; and

(v) a person who cultivates the land on payment of warm;

but does not include a mere intermediary or his heir;

(10) "family" in relation to a person, means the person, the wife or husband, as
the case may be, of such person and his or her minor sons and unmarried daughters;

(11) "forest land" includes any waste land containing trees or shrubs;

(12) "full owner" means a person entitled to the absolute proprietorship of land;

(13) "Government" means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the Constitution;

(14) "to hold land" with its grammatical variations and cognate expressions
means to own land as owner or to possess or enjoy land as possessory mortgagee or as
tenant or as intermediary or in one or more of those capacities;

(15) "intermediary" means any person who, not being an owner or a possessory
mortgagee, has an interest in land, and is entitled, by reason of such interest, to
possession thereof, but has transferred such possession to others:

(16) "land" means agricultural land, that is to say, land which is used or capable
of being used for agricultural purposes or purposes subservient thereto and includes
forest land, pasture land, orchard and tope, but does not include house site or land used
exclusively for non-agricultural purposes;

(17) "Land Commissioner" means the Secretary to Government, Revenue

Department;

(18) "land owner" means the owner of the land let for cultivation by a tenant
and includes the heirs, assignees, legal representatives of such owner or persons
deriving rights through him;

(19) "Land Tribunal" means a Land Tribunal constituted under section 44;
 166

(20) "limited owner" means any person entitled to a life estate in any land and
includes persons deriving rights through him;

Explanation. – A person who has a right to enjoy the land during his life time
shall be deemed to be a limited owner notwithstanding that he has no power to alienate
the land.

(21) "member of the Armed forces" means a person in the service of the Air
force, Army or Navy of the Union of India:

Provided that it a question arises whether any person is a member of the

Armed Forces, such question shall be decided by the Government and its decision
thereon shall be final;

(22) "non-agricultural company" means a company other than an agricultural

company;

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

(24) "notified date" means the date specified in the notification issued by the
Government under sub-section (1) of section 7:

(25) "owner" means any person holding land severally or jointly or in common
or in any way subject to the payment of revenue direct to the Government and includes
full owner or limited owner.

(26) "person" includes any company, family, firm, society or association of

individuals, whether incorporated or not or any private trust or public trust;

(27) "possessory mortgagee" means a mortgagee entitled to the possession of

the whole or part of the mortgaged property and to receive the rents and profits
accruing from such property or any part of such rents and profits and to appropriate
the same in lieu of interest or in payment of the mortgaged money or partly in lieu of
interest or partly in payment of the mortgage money and "possessory mortgage" and
"possessory mortgagor" shall be construed accordingly;

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

(29) "private trust" includes a trust under which the beneficiaries are persons,
who are ascertained or capable of being ascertained;

(30) "public trust" means a trust for a public purpose of a religious, charitable or
of an educational nature;
 167

Provided that where the income from a public trust is substantially

appropriated for the benefit of the founder of the trust or his heirs or of the family of the
founder or of his heirs, such a trust shall be deemed to be a private trust
notwithstanding the terms of the trust;

(31) "religious institution" means any ---

(i) temple;
(ii) math;
(iii) mosque; or
(iv) church;

which is dedicated to, or for the benefit of, or used as of right by, the public as a
place of religious worship;

(32) "standard hectare" means ---

(a) in the case of wet land, -

(i) 1.0 hectare of wet land assessed to land revenue at a rate exceeding
15 per hectare;

(ii) 1.2 hectares of wet land assessed to land revenue at a rate exceeding
10 but not exceeding 15 per hectare;

(iii) 1.4 hectares of wet land assessed to land revenue at a rate exceeding
7 but not exceeding 10 per hectare;

(iv) 1.6 hectares of wet land assessed to land revenue at a rate exceeding
4 but not exceeding 7 per hectare;

(v) 1.8 hectares of wet land assessed to land revenue at a rate exceeding
4 per hectare;

(b) in the case of dry land, -

(i) 2.0 hectares of dry land assessed to land revenue at a rate exceeding
9 per hectare;
(ii) 2.5 hectares of dry land assessed to land revenue at a rate exceeding
7 but not exceeding 9 per hectare;
(iii) 3.0 hectares of dry land assessed to land revenue at a rate exceeding
3 but not exceeding 7 per hectare;
(iv) 3.6 hectares of dry land assessed to land revenue at a rate not
exceeding 3 per hectare;
 168

Explanation – I – For the purposes of this Act –

(a) "dry land" means the land classed as waste or uncultivated;

(b)"wet", "dry" and "waste or uncultivated" respectively mean lands referred

to as, "Terres A Nelly (Rizieres)" "Terres A Menus Grains" and "Terres Boisees Ou
Incultes (Terres Vagues)" in the Deliberation of the Conseil General, dated the 24th
December, 1933 enforced by the Arrete dated the 22nd August, 1934; and

(c) "land revenue" means the land tax levied only in accordance with the
Deliberation referred to in clause (b).

Explanation – II – Where the land held by a person consists of more than one
of the kinds of land specified in this clause, the extent of the land held by him shall, for
the purposes of this Act, be reduced to standard hectares calculated according to the
proportions specified therein;

(33) "surplus land" means the land held by a person in excess of the ceiling area
and declared to be surplus land under section 11, section 12 or section 13;

(34) "tenant" means any person who has paid or has agreed to pay rent or other
consideration for his being allowed by another to enjoy the land of the latter under a
tenancy agreement, express or implied, and includes –

(i) any such person who continues in possession of the land after the
determination of the tenancy agreement;
(ii) the heirs, assignees, legal representatives of such person, or persons
deriving rights through such persons;
(iii) a cultivating tenant;

(35) "trust" means a private trust or a public trust.

Act to override other laws, contracts, etc.

3. The provisions of this Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law for the time being in force, or any custom, usage
or contract or decree or order of a Court or other authority.
 169

CHAPTER – II

FIXATION OF CEILING ON LAND HOLDINGS

Ceiling area

4. (1) (a) Subject to the provisions of Chapter VI, the ceiling area in the case of
every person and in the case of every family consisting of not more than five members,
shall be 6 standard hectares.

(b) The ceiling area in the case of every family consisting of more than five
members shall, subject to the provisions of Chapter – VI, be 6 standard hectares together
with an additional 1.2 standard hectares for every member of the family in excess of
five;
Provided that the total extent of land held by any family shall in no case exceed
twice the ceiling area referred to in clause (a).

(2) For the purposes of this section, all the lands held individually by the
members of a family or jointly by some or all of the members of such family shall be
deemed to be held by the family.

(3) (a) In calculating the extent of land held by a member of a family or by an

individual person, the share of the member of the family or of the individual person in
the land held by an undivided Hindu family shall be taken into account.
(b) In calculating the extent of land held by a family or by an individual
person, the share of the family or of the individual person in the land held by a firm,
society or association of individuals (whether incorporated or not) or by a company
(other than a non-agricultural company) shall be taken into account.

Explanation.– For the purposes of this section –

(a) the share of a member of a family or of an individual person in the

land held by an undivided Hindu family, and
(b) the share of a family or of an individual person in the land held by a
firm, society or association of individuals (whether incorporated or not), or by a
company (other than a non-agricultural company), shall be deemed to be the extent of
land –
(i) which, in case such share is held on the appointed day would
have been allotted to such member, person or family had such
land been partitioned, or divided in proportion to the share held
by such member, person or family, as the case may be, on such
day; or
 170

(ii) which, in case such share is acquired in any manner whatsoever

after the appointed day would be allotted to such member,
person or family if a partition, or division in proportion to the
share held by such member, person or family, were to take place
on the date of the preparation of the draft statement under
sub-section (1) of section 9.

(4) In calculating the extent of land held by any person, any land which was
transferred by sale, gift or otherwise or partitioned by that person after the appointed
day but before the commencement of this Act, shall be taken into account as if such land
had not been transferred or partitioned, as the case may be.

(5) (a) The land held by the public trust referred to in the proviso to clause
(30) of section 2 shall be deemed to be held by the founder of the trust or his heirs or the
family of the founder or of his heirs.

(b) In calculating the extent of land held by such founder or his heirs or
such family, the extent of the land held by the public trust shall be taken into account.

(6) In calculating the extent of land held by any person, the extent of land
which may revert to such person immediately after the death of any limited owner
shall, during the lifetime of the limited owner, be excluded.

Basis of calculation of the extent of land held by the founder

of a public trust

5. (1) Where under the terms of a public trust any interest either in the land in respect
of which the public trust is created or in the income from such land is reserved in
favour of the founder of such public trust, the authorised officer shall declare the extent
of land which bears to the total extent of land held on the appointed day in respect of
which the public trust is created, the same proportion as such interest bears to the total
interest in such land or the income therefrom.

(2) The extent of the land so declared under sub-section (1) –

(a) shall, with effect from the date of such declaration, be deemed to be held
by the founder;
(b) shall be taken into account in calculating the extent of land held by him;
and
(c) shall cease to be the public trust property from the date of such
declaration;

but shall be subject to any other liability that may be subsisting on such land;
 171

Provided that the extent of such liability shall bear the same proportion to the
entire liability as the extent so declared bears to the total extent.

Ceiling on holding land

6. On and from the appointed day, no person shall, except as otherwise provided in
this Act, but subject to the provisions of Chapter-VI, be entitled to hold land in excess of
the ceiling area:

Provided that in calculating the total extent of land held by any person, the
authorised officer may, for reasons to be recorded in writing permit any person to hold
land in excess of the ceiling area if the extent of excess of land does not exceed 0.2
hectare in the case of wet land and 0.4 hectare in the case of dry land.

Furnishing of return by persons holding land in excess of ceiling area

7. (1) Within thirty days from such date as may be specified in the notification
issued by the Government in this behalf, every person, who, on the appointed day, held
land in excess of the ceiling area shall, in respect of all land held by such person on such
day, furnish to the authorised officer within whose jurisdiction the holding of such
person or the major part thereof is situated, a return containing the following
particulars, namely:-

(i) particulars of all the land;

(ii) particulars of the members of the family and of the land held by each
member of the family;

(iii) particulars of any interest either in the land held by a trust or in the
income from such land reserved in his favour or in favour of any
member of his family;

(iv) particulars of the encumbrances, if any, over the land together with
the name and address of the creditor;

(v) particulars of any pending litigation respecting the land or part

thereof;

(vi) particulars of the land which such person desires to retain within the
ceiling area and the land which he desires to be declared as surplus
land;
 172

(vii) particulars of land held by tenant, if any, and the name and address
of such tenant;

(viii) such other particulars as may be prescribed.

Explanation-I - In the case of a member of the Armed Forces, the reference to

thirty days shall be deemed to be a reference to one year.

Explanation-II - Where land is held by –

(a) an individual, the return shall be furnished by him or any person

authorised by him in writing in this behalf.

(b) a person who is a minor, lunatic, idiot, or is subject to a like disability, the
return shall be furnished by the guardian, manager or other person in charge of such
person or of the property of such person.

(c) a company or other corporate body, the return shall be furnished by any
person competent to act for such company or body in this behalf.

Explanation-III - Where land is held by a family, the return shall be furnished

by the person in management of such family or of the property of such family and the
return so furnished shall be binding on the other members of the family;

+ [Omitted]

Explanation-IV – Where in a family both husband and wife hold land

separately and the aggregate of such land exceeds the ceiling area; the extent of land to
be declared surplus by each of them shall bear the same proportion to the extent of land
held by them.

(2) The notification referred to in sub-section (1) shall contain such particulars
and shall be published in such manner as may be prescribed.

+ Proviso to Explanation III is omitted as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.1977.
 173

Collection of information

8. (1) If any person who has held land in excess of the ceiling area fails to furnish
the return under section 7 or furnishes an incorrect or incomplete return under that
section, the authorised officer may, by notice, require such person to furnish the return
or the additional particulars, as the case may be, within the time specified in the notice,
or within such further time not exceeding thirty days as the authorised officer may
allow.

(2) (a) Where any person, on whom notice under sub-section (1) has been
served, fails to furnish the return, or the additional particulars, as the case may be,
within the time specified in that notice, or within the further time allowed by the
authorised officer under sub-section (1), the authorised officer may obtain in such
manner as may be prescribed the necessary information either by himself or through
such agency as he thinks fit.

(b) + [omitted]

Preparation and publication of draft statement as regards land in

excess of the ceiling area

9. (1) (a) On the basis of the return furnished under sub-section (1) of section 7
+[omitted] or on the basis of the return furnished under subsection (1) of section 8 and
the additional particulars, if any furnished under that sub-section, or on the basis of the
information obtained by the authorised officer under clause (a) of sub-section (2) of
section 8 +[omitted] as the case may be, the authorised officer shall, subject to the
provisions of sub-sections (2), (3) and (4) and after making such inquiry as he deems fit,
prepare a draft statement in respect of each person holding or deemed to have held
land in excess of the ceiling area.

(b) The draft statement prepared under clause (a) shall contain the
following particulars namely: -

(i) the name and address of the person;

(ii) particulars of all land held by such person and the total extent
of such land;

+ Omitted as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 174

(iii) particulars of the members of the family and of the stridhana

land held by each female member of the family;

(iv) particulars of any interest either in the land held by a trust or in

the income from such land reserved in his favour or in favour
of any member of his family;

(v) particulars of encumbrances, if any, over the land together with

the name and address of the creditor;

(vi) particulars of the land which such person desires to retain

within the ceiling area;

(vii) the extent of the ceiling area of the person;

(viii) particulars of the land which may be comprised within the

ceiling area;

(ix) particulars of the land held by tenant, if any, and the name and
address of such tenant;

(x) particulars of the land proposed to be declared as surplus land:

(xi) such other particulars as may be prescribed.

(2) (a) For the purpose of calculating after the appointed day the ceiling area
of a family holding land on the appointed day in excess of 6 standard hectares, the
authorised officer shall take into account only those members of that family who are
alive on the notified date.

(b) For the purpose of calculating after the appointed day, the ceiling area
of any other family, the authorsied officer shall take into account only those members of
that family who are alive on the date of the preparation of the draft statement under
sub-section (1).

(3) If any person fails to specify the particulars of the land which he desires to
retain within his ceiling area, the authorised officer shall, as far as practicable, specify in
the draft statement, the land which is capable of easy and convenient enjoyment as the
land to be retained by such person within his ceiling area.
 175

(4) If any person has specified the particulars of the land which he desires to
retain within his ceiling area, the authorised officer shall, as far as practicable, declare
the same land as comprised within his ceiling area;

Provided that where in the opinion of the authorised officer, the utility of any
land or part thereof held by any person has been diminished by any wilful act of such
person, after the appointed day, the authorised officer shall declare such land or any
part thereof as comprised within his ceiling area;

Provided further that the authorised officer shall, subject to such conditions as
may be prescribed, declare the share of any person in the land held by an agricultural
company, a co-operative society or a land mortgage bank, or any part of such share as
comprised within the ceiling area;

Provided also that subject to the above provisions, the land which the
authorised officer proposed to declare as surplus land under clause (x) of sub-section (1)
shall, as far as practicable, be such as is capable of easy and convenient enjoyment.

(5) The draft statement shall be published in such manner as may be prescribed
and a copy thereof shall be served on the persons concerned, the tenants, creditors and
all other persons who in the opinion of the authorised officer are interested in the land
to which such draft statement relates, together with a notice stating that any objection to
the draft statement shall be preferred within + [fifteen] days from the service of such
notice.

(6) (a) The authorised officer shall duly consider any objection received
within the time specified in the notice referred to in sub-section (5) from the persons on
whom a copy of the draft statement has been served or any objection received within
+ [fifteen] days from the date of the publication of the draft statement from any other

person.

(b) The authorised officer shall, after giving the objector a reasonable
opportunity of being heard and of adducing evidence, if any, and subject to such rules
as may be made under this Act, pass such orders as he deems fit.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 176

Authorised officer to decide question of title in certain cases

10. (1) If while considering the objections received under sub-section (5) of section
9 or otherwise, the authorised officer finds that any question has arisen regarding the
title of a person to any land and such question has not already been finally determined
by, or is not pending before, a competent court, the Land Tribunal or other authority,
the authorised officer may, subject to the provisions of sub-section (2), decide such
question summarily in such manner as may be prescribed and may pass such order as
he deems fit.

(2) Where in the opinion of the authorised officer the decision of a question
under sub-section (1) involves a substantial question of law or of fact, he shall, for
reasons to be recorded in writing, refer the question to the Land Tribunal.

(3) The order of the authorised officer under sub-section (1) shall not be subject
to any appeal or revision, but any party may, within three months from the date of
service of a copy of such order, institute a suit in the Land Tribunal within whose
jurisdiction the land or the major part thereof is situated to have the order set aside or
modified but subject to the final result of such suit, if any, the order of the authorised
officer shall be final.
Publication of final statement

11. (1) After the disposal of the objections, if any, preferred under sub-section (5) of
section 9, and after passing the order, if any, under sub-section (1) of section 10, the
authorised officer shall, subject to the provisions of this Act and the rules made
thereunder, make necessary alterations in the draft statement in accordance with the
order passed on the objections aforesaid and the order, if any, passed under sub-section
(1) of section 10, and shall declare the surplus land held by each person.

(2) The authorised officer shall thereafter publish in such manner as may be
prescribed a final statement specifying therein the entire land held by each person, the
land to be retained by him within the ceiling area and the land declared to be surplus
land and such other particulars as may be prescribed and cause a copy thereof to be
served on the persons referred to in sub-section (5) of section 9.

(3) The statement referred to in sub-section (2) shall, subject to the provisions of
section 13, be conclusive evidence of the facts stated therein.
 177

Exclusion of certain land from calculating of ceiling area

12. (1) Notwithstanding anything contained in sections 10 and 11, the authorised
officer shall, in calculating the extent of land held by any person, exclude the land in
respect of which any question of title is pending before a competent court, or the Land
Tribunal or other authority and where after such exclusion the land held by such person
is in excess of the ceiling area, he shall declare the land in excess to be surplus land.

(2) The land so declared as surplus land shall be incorporated in the final
statement published under section 11.

Amendment of final statement in certain cases

13. (1) As soon as may be, after the final disposal of the suit or other proceeding or
suit relating to the question of title of any land excluded under section 12, the
authorised officer shall –

(i) amend the final statement published under section 11, or

(ii) where there is no such final statement, prepare a final statement, if
necessary, under section 11.

in accordance with the decision of the court or the Land Tribunal or other authority, as
the case may be.

(2) The final statement amended or prepared under sub-section (1), shall be
published in such manner as may be prescribed and the authorised officer shall cause a
copy of the final statement as so amended or prepared to be served on the persons
referred to in sub-section (5) of section 9.

Powers to rectify bona fide mistakes and clerical errors

14. Notwithstanding anything contained in section 11 and 12, the authorised officer
may, either of his own motion or on the application of any of the parties, -

(a) if he is satisfied that a bona fide mistake has been made in regard to any
entry in the final statement published under section 11 or section 13, make the necessary
corrections therein;

(b) at any time, correct any clerical or arithmetical mistake in regard to any
entry in such final statement.
 178

Possession of and held by possessory mortgagee to

revert to the possessory mortgagor in certain cases

15. (1) Where any land held by any person as possessory mortgagee is in excess of
the ceiling area of such person, the possession of the land in such excess shall, with
effect from the date of publication of the final statement under section 11 or section 13 –

(a) in any case where the total holding of the possessory mortgagor is not in
excess of the ceiling area, revert to the possessory mortgagor;
(b) in any case where the total holding of the possessory mortgagor is in
excess of the ceiling area, and where he desires the land mortgaged by him or any part
thereof to be included within his ceiling area in the return furnished by him under
section 7, revert to him subject to the condition that the land so reverted together with
the other land held by him does not exceed the ceiling area.

(2) Where the possession of the land in excess held by a possessory mortgaged
or any part thereof does not revert to the possessory mortgagor under sub-section (1),
the Government may acquire such land under section 17.
(3)(a) (i) The possessory mortgagor to whom possession of the
land mortgaged reverts under sub-section (1), shall pay the mortgage money due to the
possessory mortgagee in respect of that land.

(ii) Where possession of a part only of the land mortgaged reverts to

the possessory mortgagor under sub-section (1), the possessory mortgagor shall pay to
the possessory mortgagee such amount of the mortgage money as bears to the entire
amount of the mortgage money, the same proportion as the value of the part aforesaid
on the date of such reversion bears to the value of the entire extent of the land
mortgaged on the said date.

(iii) Where no agreement can be reached in respect of the mortgage

money payable under sub-clause (i) or sub-clause (ii), the authorised officer shall,
subject to the provisions of sub-clause (iv) and after making such inquiry as he deems
fit, decide the amount so payable.

(iv) Where in the opinion of the authorised officer the decision of a

question under sub-clause (iii) involves a substantial question of law or of fact, he shall,
for reasons to be recorded in writing, refer the question to the Land Tribunal.

(b) The land or any part thereof, the possession of which reverts to the
possessory mortgagor under sub-section (1), shall be the security for the payment of the
mortgage money.
 179

(c) The mortgage money referred to in clause (a) shall, for the purpose of
article 62 of the Schedule to the Limitation Act, 1963 (Central Act 36 of 1963), be deemed
to have become due with effect from the date of reversion under sub-section (1), and
shall carry interest at the rate of five and a half percentum per annum from the said
date.
(4) Where the possession of any land or any part thereof is likely to revert to the
possessory mortgagor under sub-section (1), the authorised officer shall first fix the
ceiling area of the possessory mortgagee.

Possession of land held by tenant to revert to the land owner

in certain cases

16. (1) Where any land held by any person as tenant is in excess of the extent of land
which he is entitled to hold under section 4, the possession of the land in such excess
shall, with effect from the date of publication of the final statement under section 11 or
section 13, revert to the land owner to the extent to which the land of the land owner
himself is not liable to be declared as surplus land in accordance with the provisions of
this Act.

(2) Where in respect of any land, the possession of which reverts to the land
owner under sub-section (1), the contract of tenancy provides for the continuance of the
tenancy after the expiry of the agricultural year immediately succeeding the date of
such reversion, such land owner shall pay to the tenant an amount equivalent to one
eighth of the fair rent calculated in the manner specified in paragraph 4 of Part I of
Schedule I and out of such amount, three-fourths shall be paid to the cultivating tenant
and one-fourth to the intermediary, if any.

(3) If any dispute arises in regard to the amount payable under sub-section (2),
either party may make an application to the authorised officer within whose jurisdiction
the land or the major part thereof is situated, for deciding such dispute and the
authorised officer shall decide such dispute in accordance with such procedure as may
be prescribed.
Acquisition of surplus land

17. (1) After the publication of the final statement under section 11 or section 13, the
Government shall, subject to the provisions of sections 15 and 16, publish a notification
to the effect that the surplus land is required for a public purpose.

(2) A soon as may be after the publication of a notification under sub-section (1),
the authorised officer shall –
(a) cause to be published in every village or town in which any part of the
land specified in such notification is situated a proclamation containing the terms of the
notification:
 180

(b) cause a copy of the notification to be served on the persons concerned, the
creditors, persons whose names appear in the final statement published under section
11 or section 13 and such other persons as may be specified in the rules made under this
Act.

(3) on the publication of the notification under sub-section (1), the land specified
in the notification together with the trees standing on such land and building,
machinery, plant, apparatus, wells, filter points or power lines constructed, erected or
fixed on such land and used for agricultural purposes shall, subject to the provisions of
this Act, be deemed to have been acquired for a public purpose and vested in the
Government free from all encumbrances with effect from the date of such publication
and all right, title and interest of all persons in such land shall, with effect from the said
date, be deemed to have been extinguished:

Provided that where there is any crop standing on such land on the date of such
publication, the authorised officer may, subject to such conditions as may be prescribed,
permit the harvest of such crop by the person who had raised such crop.

(4) Subject to the rules made under sub-section (5), the authorised officer may, at
any time after the publication of the notification under sub-section (1), take possession
of any land specified in the said notification.

(5) (a) The Government may make rules –

(i) specifying the classes of tenants, who may be allowed to continue in

possession of the land:

(ii) permitting any co-operative society registered or deemed to have been

registered under the Puducherry Co-operative Societies Act, 1965
(Act 11 of 1965) or any land mortgage bank to which the Madras
Co-operative Land Mortgage Bank Act, 1934 (Madras Act of 1934) in
its application to the Union territory of Puducherry applies or any
agricultural company to continue in possession of the land
notwithstanding anything contained in sections 4 and 6, even after the
publication of the notification under sub-section (1).

(b) The rules to be made under clause (a) may also provide –

(i) for the conditions subject to which the persons referred to in sub-clause
(i) and sub-clause (ii) of clause (a) may continue in possession of the
land;
 181

(ii) that the share of a member of the co-operative society in such land
together with his other land, if any, or if he is a member of a family,
together with the land owned by the members of his family, if any,
does not exceed the ceiling area.

Direction by Land Commissioner

18. Where for any reason, the extent of any land held by any person has not been
included in the total extent of the land held by such person for the purposes of this Act,
the Land Commissioner may, at any time, direct the authorised officer to include such
land in such total extent and the ceiling area shall be calculated in accordance with the
provisions of this Act, and accordingly, the provisions of section 8 and the other
provisions of this Act shall, as far as may be, apply as if the extent of the land so
included were mentioned in the return required to be furnished under section 7.

CHAPTER – III
CEILING ON FUTURE ACQUISITION AND RESTRICTION ON CERTAIN
TRANSFERS

Declaration to be made before the registering authority in certain cases

19. (1) On or after the notified date, no document relating to any transfer of land
either by sale, gift, exchange, lease, possessory mortgage, surrender, agreement,
settlement or otherwise, shall be registered unless a declaration in writing is made in
duplicate in such form as may be prescribed and filed by the transferee before the
registering authority under the Registration act, 1908 as to the total extent of land held
by him.

(2) The registering authority referred to in sub-section (1) shall forward within
such time and in such manner as may be prescribed one copy of the declaration referred
to in sub-section (1) to the authorised officer within whose jurisdiction the land which is
the subject matter of the transfer or the major part thereof is situated.

(3) On receipt of the copy of the declaration under sub-section (2), the
authorised officer may obtain such information as may be necessary and take such
action as he deems fit in accordance with the provisions of this Act, and in accordance
with such rules as may be made in this behalf.

Penalty for future acquisition in contravention of section 6

20. (1) If, as a result of any transfer of land either by sale, gift (other than gift made in
contemplation of death), exchange, surrender, agreement, settlement or otherwise
effected on or after the notified date, the extent of land held by the transferee exceeds
 182

the ceiling area, then, the right, title or interest accrued in his favour by virtue of such
transfer in the land in excess of the ceiling area shall, as a penalty for contravention of
the provisions of section 6, be deemed to have been transferred to the Government with
effect from the date of such transfer, on a declaration made by the authorised officer
within whose jurisdiction such excess land or the major part thereof is situated and the
authorised officer shall record in writing the reasons for such declaration:

Provided that --

(a) no such declaration shall be made unless the transferor and the transferee
have been given a reasonable opportunity of being heard and of adducing evidence, if
any;
(b) the transferee shall be liable for payment of the consideration for, and to
discharge other liabilities under, such transaction and the transferor shall have no claim
for such consideration against the Government, otherwise than in respect of such land;
(c) no suit or other proceedings by the transferee shall lie in any court for the
refund of the consideration for any such transaction.

Explanation – For the purposes of this sub-section, "transfer" does not include
inheritance, bequest, lease or possessory mortgage.

(2) The Government may make rules, providing for the manner in which any
right, title or interest transferred to the Government under sub-section (1) shall be
disposed of.

Ceiling on future acquisition by inheritance bequest or by sale in execution of

decree, etc.

21. (1) If, on or after the appointed day –

(a) any person acquires by inheritance or bequest from any person;

(b) but before the notified date, any person acquires by sale in execution of a
decree or order of a civil court or of an award or order of any other lawful authority,
any land, which, together with the land, if any, already held by him, exceeds in the
aggregate the ceiling area, then he shall, within + [thirty] days from the notified date or
from the date of such acquisition, whichever is later, furnish to the authorised officer
within whose jurisdiction his holding or the major part thereof is situated, a return
containing the following particulars, namely: -

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 183

(i) particulars of the land already held by him and those of the land so
acquired;

(ii) particulars of the land which he desires to retain within the ceiling
area;

(iii) particulars of the date of acquisition;

(iv) particulars of the manner of acquisition and of the documents, if any,

under which such acquisition was made;

(v) the name and description of the person who held the land
immediately before the date of acquisition;

(vi) particulars of the land held by tenant, if any, and the name and
address of such tenant; and

(vii) such other particulars as may be prescribed.

Explanation. - In this sub-section, "bequest" shall include gift made in

contemplation of death.

(2) If, as a result of marriage or adoption on or after the appointed day, the
extent of land held by any person exceeds in the aggregate the ceiling area, then, he
shall, within + [thirty] days from the notified date or from the date of marriage or
adoption, as the case may be, whichever date is later, furnish to the authorised officer
within whose jurisdiction his holding or the major part thereof is situated, a return
containing the following particulars, namely: -

(i) particulars of the land held before the date of the marriage or
adoption;

(ii) particulars of the land held after the date of marriage or adoption; and

(iii) such other particulars as may be prescribed.

(3) If he fails to furnish the return or furnished an incorrect or incomplete

return within the period specified in sub-section (1) or sub-section (2), the provisions of
section 8 and other provisions of this Act shall, as far as may be, apply as if it were a
return required to be furnished under section 7.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f. 28.02.77
 184

Restriction on transfer of land by a person

22. (1) Except where a person is permitted, in writing, by the authorised officer, a
person, holding land in excess of the ceiling area applicable to him under section 4, shall
not, after the commencement of this Act, transfer by sale, gift or otherwise or make any
partition of any land held by him or any part thereof until the excess land, which is to
be acquired by the Government under section 17, has been determined and taken
possession of by or on behalf of the Government.

(2) (a) If any person makes any transfer, whether by sale, gift or otherwise, of
any land in contravention of the provisions of sub-section (1), the Government may, in
the first instance, take possession of land, equal in area to the land which is to be
acquired by the Government, from out of the land held by such person, and where such
recovery from the person is not possible, from the transferee.

(b) Where there are more transferees than one, the deficiency of the
surplus area shall be made up from each of the transferees in proportion to the land
transferred to them.

(3) Any person who transfers any land in contravention of the provisions of
sub-section (1) shall be punishable with fine which may extend to two thousand rupees,
or with imprisonment for a term which may extend to six months, or with both.

CHAPTER – IV

PERMISSION BY GOVERNMENT TO HOLD LAND IN

EXCESS OF CEILING AREA BY INDUSTRIAL OR
COMMERCIAL UNDERTAKINGS

Industrial or commercial undertakings to apply to Government

for permission to hold-land in excess of ceiling area.

23. (1) If any industrial or commercial undertaking desires to hold or acquire any
land in excess of the ceiling area for non-agricultural purposes, it shall make an
application to the Government for permission to hold or acquire such land and every
such application shall be in writing and shall contain such particulars as may be
prescribed.

Explanation.– In this section, "industrial or commercial undertaking" means

any industrial or commercial undertaking (other than a co-operative society) which bona
fide carries on any industrial or commercial operation.
 185

(2) The Government may, subject to the provisions of sub-section (3), grant the
permission for the whole or part of the land specified in the application subject to such
conditions as it may specify or refuse to grant such permission. The order granting such
permission shall contain the particulars of the land in respect of which such permission
is granted.

(3) The Government shall, in deciding whether to grant or refuse the permission
under sub-section (2), take into consideration the following factors, namely –

(a) the nature of the industrial or commercial operation;

(b) whether the excess land is required for immediate use or use in future;
and
(c) such other particulars as may be prescribed.

(4) The Government may cancel the permission in respect of any land granted
under this section on the breach of any condition specified by the Government.

Provided that no application under sub-section (3) shall be refused or

permission under sub-section (4) cancelled unless the party who may be affected by
such refusal or cancellation has been given a reasonable opportunity for making a
representation in the matter.

CHAPTER – V

PAYMENT OF AMOUNT FOR ACQUIRING SURPLUS LAND

Determination of amount for land acquired by Government

24.(1) Every person whose right, title or interest in any land is acquired by the
Government under Chapter II shall subject to the provisions of section 28, be paid an
amount according to the rate specified in Schedule I.

(2) Any person claiming any amount under sub-section (1) may, within + [fifteen]
days from the date of publication of the notification under sub-section (1) of section 17
prefer the claim before the authorised officer in such form and containing such
particulars as may be prescribed.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.2.77.
 186

(3)(a) The authorised officer shall determine the amount at the rate specified in
Schedule I and prepare a draft assessment roll in such manner and containing such
particulars as may be prescribed indicating the amount so determined and shall cause it
to be published together with –

(i) a statement that the amount specified therein is the entire amount
payable for all interests in the land and that subject to the other
provisions of this Act, the persons named therein are the only persons
who are entitled thereto in the proportion stated therein, and

(ii) a notice stating that objections, if any, in respect of any entry in the
draft may be preferred by any person in such manner as may be
prescribed within + [fifteen] days from the date of publication:

Provided that the authorised officer may allow such further time not exceeding
+ [fifteen] days.

(b) The authorised officer shall cause to be served on the persons whose names
appear in the draft assessment roll a copy of the draft together with a copy of the
statement and of notice referred to in clause (a).

(4) The authorised officer shall consider any objection which may be preferred
under sub-section (3) and after giving the parties a reasonable opportunity of being
heard and of adducing evidence, if any pass such order as he thinks fit and record the
reasons therefor.

(5) When such objection, if any, in regard thereto has been finally disposed of,
the authorised officer shall make such alteration in the draft assessment roll as may be
necessary to give effect to any order made in regard to the objection and shall cause the
draft so altered to be published finally in such manner as may be prescribed.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.2.77.
 187

(6) If no objection is preferred within the period specified in the notice published
under sub-section (3) or within the further time allowed by the authorised officer under
that sub-section, the authorised officer shall cause the draft compensation assessment
roll to be published finally in such manner as may be prescribed.

(7) Every entry in the assessment roll published finally under sub-section (5) or
sub-section (6) shall, except as provided in this Act, be final and conclusive evidence of -

(a) the matters referred to therein;

(b) the nature of the interest of the person named therein; and

(c) the apportionment of the amount among the persons claiming interest
thereto.

(8) When the assessment roll has been published finally under sub-section (5) or
sub-section (6), the authorised officer shall, within such time as may be prescribed,
endorse a certificate thereon stating the date of the final publication thereof and shall
date and subscribe the same with his name and official designation and such certificate
shall be conclusive proof of such publication and the date of such publication.

(9) The authorised officer may, if he is satisfied either of his own motion or on the
application of any of the parties that a bona fide mistake has been made in regard to any
entry in the assessment roll as published finally, make necessary correction therein and
on such correction being made, the provisions of sub-section (3) to (8) shall, as far as
may be, apply thereto.

(10) Notwithstanding anything contained in sub-section (9), the authorised officer

may, at any time, correct either of his own motion or on the application of any of the
parties any clerical or arithmetical mistake in regard to any entry in the assessment roll
as published finally.

Claims of mortgagee or charge holder on surplus land

25. (1)(a) Where any surplus land acquired under the provisions of this Act is
subject to a mortgage or charge subsisting on the date of the acquisition, the mortgagee
or the charge holder shall, where the amount due to him or part thereof can be fixed by
agreement, be paid such amount or part.
 188

(b) Where no such agreement can be reached, the mortgagee or the charge
holder shall within + [thirty] days from the date of the acquisition, prefer a claim in such
manner as may be prescribed before the authorised officer who shall, subject to the
provisions of sub-section (3), decide the claim in such manner as may be prescribed and
record the reasons for the decision.

(2) Where there are more claimants than one, the authorised officer shall settle the
order in which each claimant is entitled to receive the amount due to him, and in doing
so he shall be guided by the appropriate provisions of the Transfer of Property Act,
1882 (Central Act 4 of 1882).

(3) Where in the opinion of the authorised officer the decision of a claim under
sub-section (1) or sub-section (2) involves a substantial question of law or of fact, he
shall, for reasons to be recorded in writing, refer the claim to the Land tribunal for
decision.

(4) If the amount of claim allowed to the mortgagee or the charge holder by the
authorised officer exceeds the amount payable under section 24, the entire amount shall
be paid to the mortgagee or the charge holder, as the case may be, and the balance may
be recovered by the mortgagee or the charge holder in accordance with law for the time
being in force.

Claims of limited owner on surplus land

26. (1) where any surplus land acquired under the provisions of this Act is held by a
limited owner on the date of the acquisition, the amount payable in respect of such
surplus land under section 24 shall, subject to such conditions as may be prescribed, be
kept in deposit before such authority as may be prescribed, and the authorised officer
shall direct payment of the interest accruing from the amount so deposited to the
person or persons who would, for the time being, have been entitled to the possession
of the said land:

Provided that where the limited owner has created an encumbrance over the
surplus land referred to in this section, the whole or any portion of the interest aforesaid
shall be paid to the encumbrancer, to the extent to which the encumbrancer is entitled
and the balance shall be paid to the person or persons who would, for the time being,
have been entitled to the possession of the said land.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 189

(2) The amount referred to in sub-section (1) shall remain so deposited until the
same is paid to any person or persons becoming absolutely entitled thereto.

Claims of maintenance holder on surplus land

27. Where any surplus land acquired under the provisions of this Act is on the date
of the acquisition subject to a charge for payment of maintenance to another, the
amount payable in respect of such surplus land under section 24 shall, subject to such
conditions as may be prescribed, be kept in deposit before such authority as may be
prescribed, and such amount shall be deemed to be substituted security and shall
continue to remain such security till the death of the maintenance-holder or till the right
to receive maintenance cease to exist or till the liability to pay maintenance is
discharged.
Payment of amount to certain tenants
28. (1) Where the contract of tenancy provides for the continuance of the tenancy in
respect of any surplus land that vests in the Government under section 17, after the
expiry of the agricultural year immediately succeeding the date of such vesting, the
tenants shall be entitled to the payment of such amount as is specified in Schedule II:
Provided that such tenant shall not be entitled to any amount in respect of such
surplus land also under sub-section (1) of section 24.
(2) The amount referred to in sub-section (1) shall be apportioned between the
cultivating tenant and the intermediary concerned in the manner specified in Schedule
II.
Manner of payment of amount
29. (1) The amount payable as finally determined under this Act shall, within such
period as may be prescribed, be paid in cash either in one lump or in annual
installments, not exceeding three, together with interest at six per cent per annum.
(2) The interest shall be paid --
(i) in the case of any land held by any person referred to in sub-clause (i)
or sub-clause (ii) or clause (a) of sub-section (5) of section 17, with effect
from the date of publication of the notification under sub-section (1) of
that section; and
(ii) in any other case, with effect from the date of taking possession of the
land under sub-section (4) of section 17.

CHAPTER – VI

CULTIVATING TENANTS CEILING AREA

Definition

30. In this Chapter, "cultivating tenant’s ceiling area" means 2 standard hectare held
by any person partly as cultivating tenant and partly as owner or wholly as cultivating
tenant.
 190

Explanation. – For the purposes of this Chapter "cultivating tenant" includes any
tenant who is in actual possession of land but does not contribute his own physical
labour or that of any member of his family in the cultivation of such land.
Person holding land as cultivating tenant to furnish return in certain cases
31. (1) Every cultivating tenant who holds on the notified date land in excess of the
cultivating tenant’s ceiling area shall, within ninety days from the said date, furnish to
the authorised officer a return containing the following particulars, namely: -
(i) particulars of the land, if any, which he holds as owner;
(ii) particulars of the land which he holds as cultivating tenant;
(iii) particulars of the name and address of the land owner concerned; and
(iv) such other particulars as may be prescribed.
(2) If any cultivating tenant who has held land in excess of the cultivating
tenant’s ceiling area, fails to furnish the return under sub-section (1) or furnishes an
incorrect or incomplete return under that sub-section, the authorised officer may, by
notice, require such cultivating tenant to furnish the return or the additional particulars
as the case may be, within the time specified in the notice or within such future time not
exceeding +[fifteen] days as the authorised officer may, in his discretion allow.
(3) (a) Where any cultivating tenant on whom notice under sub-section (2)
has been served fails to furnish the return or the additional particulars, as the case may
be, within the time specified in that notice or within the further time, if any, allowed by
the authorised officer under that sub-section , the authorised officer may obtain in such
manner as may be prescribed the necessary information either by himself or through
such agency as he thinks fit.
(b) The authorised officer shall, as soon as may be after obtaining the
information under clause (a), give to the cultivating tenant concerned a reasonable
opportunity of making his representation and of adducing evidence, if any, in respect of
such information and consider any such representation and evidence and pass such
orders as he deems fit.

Authorised officer to take possession of land in excess of

cultivating tenant’s ceiling area
32. On the basis of the return furnished under sub-section (1) of section 31 or on the
basis of the return furnished under sub-section (2) of that section, and the additional
particulars, if any, furnished under that sub-section, or on the basis of the information
obtained by the authorised officer under clause (a) of sub-section (3) of section 31, and
the orders passed on the representation and the evidence, if any, under clause (b) of
sub-section (3) of that section, the authorised officer shall subject to such rules, as may
be made in this behalf and subject to the rights of the owner of the land, take possession
on behalf of the Government, of the land held by the person, as cultivating tenant and
in excess of the cultivating tenant’s ceiling area:

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 191

Provided that the authorised officer shall not take possession of such land
unless he has given the land owner and the cultivating tenant concerned a reasonable
opportunity of being heard in the matter:

Provided further that the authorised officer shall give in such manner as may
be prescribed not less than + [fifteen days] notice in writing intimating the cultivating
tenant of his decision to take possession of the land and the notice shall expire with the
end of the agricultural year in which such notice is given:

Provided also that the authorised officer may, for reasons to be recorded in
writing permit the possession of the land held by the person as cultivating tenant and in
excess of the cultivating tenant’s ceiling area, if the total extent of such excess land does
not exceed 0.2 hectare in the case of wet land and 0.4 hectare in the case of dry land.

Provided also that where there is any crop standing on such land on the date of
the expiry of the notice aforesaid, the authorised officer may postpone taking
possession of the land and permit the harvest of such crop by the person who had
raised such crop.

Liability of Government to pay rent

33. (1) With effect on and from the date on which the authorised officer takes
possession of the land under section 32, the Government shall be deemed to be the
tenant of the owner of the land.

(2) In respect of land referred to in sub-section (1), the Government shall be

liable to pay annually to the owner of such land fair rent as calculated in the manner
specified in paragraph 4 of Part I of Schedule I and such rent shall be paid in cash or in
kind accordance with such rules as may be made under this Act.

(3) If any dispute arises in regard to the rent payable under sub-section (2),
either party may make an application to the Land Tribunal within whose jurisdiction
the land referred to in sub-section (1) or the major part thereof is situated for deciding
such dispute.
Authorised officer to distribute possession of land

34. (1) The authorised officer shall distribute possession of the land, the possession
of which he has taken under section 32, to the landless persons preferably persons
belonging to the Scheduled Castes and Scheduled Tribes or to persons holding land
below the cultivating tenant’s ceiling area.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 192

(2) (a) The distribution under sub-section (1) shall be in accordance with such
rules as may be made under this Act and subject to such conditions as may be
prescribed.

(b) The rules made under clause (a) may also provide for the manner of
recovery of any amount due to the Government from, and the manner of evicting, the
person to whom such distribution is made.

* [Power of the Government to reserve land for other public purposes

34-A. Notwithstanding anything contained in section 34, the Government may, if it

considered necessary that any surplus land, the possession of which the authorised
officer has taken under section 32, is required for any public purpose, reserve such land
for such purpose.]

Authorised officer empowered to summarily dispossess persons

in certain cases

35. The authorised officer may summarily dispossess:-

(i) any person to whom any land has been distributed under section 34, if
such person fails to comply with the conditions subject to which the
distribution was made, or contravenes any rule made under this
Chapter:

(ii) any other person occupying such land except in accordance with the
provisions of this Chapter or the rules made thereunder.

Amount payable to tenants in certain cases

36. (1) Where, in respect of any land the possession of which has been taken by the
authorised officer under section 32, the contract of tenancy provides for the continuance
of the tenancy after the expiry of the agricultural year immediately succeeding the date
of taking such possession, the Government shall pay to the tenant such amount as is
provided in sub-section (2).

* Inserted vide Act No.7 of 2003 w.e.f 10-7-2003.

 193

(2) The amount payable to any tenant under sub-section (1) shall be one-eighth
of the fair rent for the land calculated in the manner specified in paragraph 4 of Part I of
Schedule I and out of such amount, three-fourths shall be paid to the cultivating tenant
and one-fourth to the intermediary, if any,

(3) If any dispute arises in regard to the amount payable under sub-section (2),
either party may make an application to the Land Tribunal within whose jurisdiction
the land or the major part thereof is situated and the Land Tribunal shall decide such
dispute in such manner as may be prescribed.

Certain claims for arrears of rent not to be enforced against Government

37. No claim of any person to any arrear of rent or any other amount accrued or due
in respect of any land for the period prior to the date of taking possession of such land
under section 32 shall be enforced by any court whether in execution of a decree or
otherwise against the Government or against any person holding the land under the
Government.

Land owner’s right to resume possession under Puducherry

Act 9 of 1971 not affected

38. Nothing contained in this Chapter shall be deemed to affect the right of any land
owner under the Puducherry Cultivating Tenants Protection Act, 1970 (9 of 1971) to
resume possession for purposes of personal cultivation of the land the possession of
which has been taken by the authorised officer under this Chapter and for the purposes
of such resumption the Government shall be deemed to be the cultivating tenant in
respect of the land aforesaid.

Furnishing of return on acquisition by lease of any land in excess of cultivating

tenant’s ceiling area

39. (1) If on or after the notified date, any person acquires by lease any land which
together with the land, if any, already held by him, exceeds in the aggregate the
cultivating tenant’s ceiling area, he shall, within + [thirty] days of such acquisition,
furnish to the authorised officer within whose jurisdiction the land or the major part
thereof is situated, a return containing such particulars as may be prescribed.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 194

(2) If the person referred to in sub-section (1) fails to furnish the return or
furnishes an incorrect or incomplete return, within the period specified in that
sub-section, the provisions of sub-section (2) and (3) of section 31 and other provisions
of this Chapter shall, as far as may be, apply as if it were a return required to be
furnished under sub-section (1) of section 31.

Effect of certain Acts

40. The provisions of the Puducherry cultivating tenants Protection Act, 1970 (9 of
1971.), the Puducherry Cultivating Tenants (Payment of Fair Rent) Act, 1970 (5 of 1971.)
and any other law relating to tenancy shall except in so far as they are inconsistent with
any of the provisions of this Chapter, continue in force.

Provisions of this Chapter to override other provisions

41. The provisions of this Chapter shall, subject to the provisions of section 16, have
effect notwithstanding anything inconsistent therewith contained in any other
provision of this Act.
CHAPTER – VII

Exemptions

42. Except as otherwise provided in sub-sections (2) and (3) of section 4 and in
section 5, nothing contained in this Act shall apply to –

(i) any land held by the Central Government or any State Government or
any local authority.
(ii) any land held by –

(a) any charitable or educational institution of public nature;

(b) any religious institution;
(c) any public trust, or religious trust of a public nature, existing on the
appointed day;
(d) any agricultural university constituted by any law;

(iii) any land in respect of which the Government has granted permission
to any industrial or commercial undertaking under section 23 and
such permission continues to be in force;

Provided that the land referred in clause (iii) shall be exempt only so long as
the conditions, if any, specified by the Government under the said section are complied
with.
 195

Act not to apply to land held by sugarcane factory

43. Nothing contained in this Act shall apply to any land held by a sugarcane factory
up to an area not exceeding 40 hectares which, in the opinion of the Government, is
necessary for the purpose of research and development.

CHAPTER – VIII

LAND TRIBUNALS

Constitution of Land Tribunals

44. (1) The Government shall constitute as many Land Tribunals as may be
necessary for the purposes of this Act.

(2) Each Land Tribunal shall consist of one person who shall be a judicial officer
not below the rank of a Sub-ordinate Judge*.

Jurisdiction and powers of Land Tribunals

45. (1) Each Land Tribunal shall have such jurisdiction over such areas such as the
Government may, by notification, from time to time determine.,

(2) If any question is referred by the authorised officer to the Land Tribunal for
its decision under sub-section (2) of section 10, sub-clause (iv) of clause (a) of
sub-section (3) of section 15 or sub-section (3) of section 25, the Land Tribunal shall
decide such question in such manner as may be prescribed.

(3) In deciding any reference or appeal under this Act, every Land Tribunal
shall have all the powers of a civil court under the Code of Civil Procedure, 1908
(Central Act 5 of 1908.) in respect of the following matters, namely: -

* The Lieutenant-Governor, Puducherry has constituted one Land Tribunal each for Puducherry and Karaikal
regions and appointed the Principal Sub-Judge, Puducherry and Sub-Judge, Karaikal, as such Land Tribunals,
for the purpose of performing the functions under this Act. Notification No. 5020/75/c dated 25-4-1975 in
gazette No.18 dt 6-5-1975.
 196

(a) summoning and enforcing the attendance of witness and examining him on
oath;
(b) requiring the discovery and production of any documents;
(c) requisitioning any public record or copy thereof from any court or office;
(d) receiving evidence on affidavits.

CHAPTER – IX

APPEALS AND REVISION

Appeal to Land Tribunal

46.+[(1) Any person aggrieved by any decision of the authorised officer under
sub-section (1), or sub-section (2), of section 11 or sub-clause (iii) of clause (a) of
sub-section (3) of section 15 or section 20 or section 22 or sub-section (4) of section 24 or
sub-section (1), or sub-section (2) of section 25 or section 26 or clause (b) of sub-section
(3) of section 31 or clause (b) of sub-section (2) of section 68, may, within thirty days
from the date of such decision, prefer an appeal to the Land Tribunal in such manner as
may be prescribed.

Explanation: – In this section and in section 47, "date of decision" means the
date on which the decision is communicated to the party concerned].

(2) The Land Tribunal may admit an appeal presented after the expiration of
the period mentioned in sub-section (1), but not exceeding thirty days, from such
period, if it is satisfied that the party concerned had sufficient cause for not presenting
the appeal within the said period.

(3) on receipt of an appeal under sub-section (1), the Land Tribunal after giving
the parties a reasonable opportunity of being heard, shall

(a) determine a case finally;

(b) remand a case;

(c) take additional evidence or require such evidence to be taken by the

authorised officer.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 197

Appeal to High Court

47. Any person aggrieved by a decision of the Land Tribunal under sub-section (3)
of section 10 or sub-section (2) of section 45, may, within +[thirty] days from the date of
decision, appeal to the High Court:

Provided that the High Court may admit an appeal presented after the
expiration of the said period if it is satisfied that the party concerned had sufficient
cause for not presenting the appeal within the said period.

Limitation Act to apply to appeal under section 46 or 47

48. The provisions of section 4 and of sub-section (1) and (2) of section 12 of the
Limitation Act, 1963 (Central Act 36 of 1963), shall, as far as may be, apply to any appeal
under section 46 or section 47.

Revision by Land Commissioner

49. The Land Commissioner may call for and examine the record of any authorised
officer in respect of any proceeding under section 11, section 12, sub-section (1) of
section 13, sub-section (3) of section (16), sub-section (4) of section 17, sub-section (5) or
sub-section (9) of section 24 or the record of any proceeding under sub-section (2) of
section 28 and in respect of any other proceeding under this Act not being a proceeding
in respect of which a suit or an appeal to the Land Tribunal is provided by this Act to
satisfy himself as to the regularity of such proceeding or the correctness, legality or
propriety of any decision or order passed thereon; and if, in any case, it appears to the
Land Commissioner that any such proceeding, decision or order should be modified,
annulled, reserved or remitted for reconsideration, he may pass order accordingly:

Provided that the Land Commissioner shall not pass any order prejudicial to
any partly unless he has been given a reasonable opportunity of being heard.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 198

Revision by High Court

50. Subject to the provisions of section 47, every Land Tribunal shall be deemed to be
a Court subordinate to the High Court for the purposes of section 115 of the Code of
Civil Procedure, 1908 (Central Act 5 of 1908.), and its orders shall be liable to revision by
the High Court under the provisions of that section.

Power to Stay

51. The High Court, the Land Tribunal or the Land Commissioner may stay the
execution of any decision or order pending the exercise of its or his powers under this
Chapter.
CHAPTER – X

PENALTIES AND PROCEDURE

Penalty for failure to furnish return

52. (1) If any person who is under an obligation to furnish a return under this Act,
refuses or wilfully fails to furnish the return within the time specified in the notice
under sub-section (1) of section 8 or under sub-section (2) of section 31 or within the
further time, if any, allowed by the authorised officer under those sub-sections, he shall
be punishable + [with imprisonment of either description for a term which may extend
to six months, or with fine which may extend to five hundred rupees, or with both].

(2) If any person who, after having been convicted under sub-section (1),
continues to refuse or to wilfully fail to furnish the return, he shall be punishable with
fine which may extend to fifty rupees for each day after the previous date of conviction
during which he continues so to offend.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.2.77.
 199

Penalty for failure to furnish information under section 68

53. If any person refuses or wilfully fails to furnish the information under
sub-section (1) of section 68 within the time specified in the notice under that
sub-section or within the further time if any, allowed by the authorised officer under
that sub-section, such person shall be punishable + [with imprisonment of either
description for a term which may extend to six months or with fine which may extend
to five hundred rupees, or with both].

Penalty for furnishing false return or information

54. If any person who is under an obligation to furnish any return or information
under this Act, furnish any return or information which he knows or has reason to
believe to be false, he shall be punishable + [with imprisonment of either description for
a term which may extend to two years, or with fine which may extend to two thousand
rupees, or with both].

Penalty for making false declaration under section 19

55. If any person makes any declaration before the registering authority under
sub-section (1) of section 19 which he knows or has reason to believe to be false, he
shall be punishable + [with imprisonment of either description for a term which may
extend to two years, or with fine which may extend to two thousand rupees, or with
both].

Penalty for acquisition by lease or possessory mortgage in excess

of ceiling area

56. If any person, on or after the notified date voluntarily acquires by lease or
possessory mortgage any land which together with the land, if any, already held by him
exceeds in the aggregate the ceiling area, he shall be punishable + [with imprisonment of
either description for a term which may extend to two years, or with fine which may
extend to two thousand rupees, or with both].

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 200

Penalty for contravention of any lawful order

57. If any person wilfully contravenes any lawful order passed under this Act or
obstructs any person from lawfully taking possession of any land under any of the
provisions of this Act, he shall be punishable + [with imprisonment of either description
for a term which may extend to one year, or with fine which may extend to one
thousand rupees, or with both].

Penalty for cutting trees or for removing any machinery, etc.

58. If any person, after the date of vesting in the Government of any land acquired
under this Act and before the disposal of such land under this Act, cuts or causes to be
cut, trees on the land, or removes or causes to be removed, any building, machinery,
plant, apparatus, wells, filter points or power lines constructed, erected or fixed on the
land and used for agricultural purposes, or does or causes to be done any act likely to
diminish the utility of the land, he shall be punishable with imprisonment for a term
which may extend to one year, or with fine not exceeding one thousand rupees, or with
both.

Offences by companies

59. (1) If the person committing an offence under this Act is a company, the
company as well as every person in charge of, and responsible to, the company for the
conduct of its business at the time of commission of the offence 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, 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.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 201

Explanation. – For the purposes of this section –

(a) "company" means any body corporate and includes a firm or other
association of individuals, and
(b) "director" in relation to a firm, means a partner in the firm.

Cognizance of offences
60. (1) No court shall take cognizance of any offence punishable under this Act
except on complaint in writing made by the authorised officer or any officer
empowered by him by special order.

(2) No court inferior to that of sub-divisional Magistrate shall try any offence
punishable under this Act.
CHAPTER – XI

DISPOSAL OF LAND ACQUIRED BY THE GOVERNMENT

UNDER THIS ACT

Disposal of Land acquired by Government

61. (1) Subject to the provisions of sub-section (2), the Government may make rules
providing for the manner in which any land acquired by the Government under this
Act shall be disposed and for the payment of the price to be paid by a person to whom
the land has been allotted:
Provided that such price shall, in no case, be less than the amount paid by the
Government for the acquisition of such land under this Act.

(2) In the disposal of the land acquired by the Government under this Act, the
Government shall give preference to any person who is completely dispossessed of his
holding, or whose extent of holding is reduced below 1.2 standard hectares held by him
partly as cultivating tenant and partly as owner or wholly as cultivating tenant, by
virtue of the provisions of this Act.

CHAPTER – XII

MISCELLANEOUS

Conversion of one kind of land into another not to affect

ceiling area in certain cases

62. (1) Notwithstanding anything contained in this Act, where on account of any
improvements made in the land by or at the cost of the person holding such land, one
kind of the lands specified in clause (32) of section 2 is converted into another kind of
 202

the lands specified in the said clause after the date of publication of the final statement
under section 11 or section 13, such conversion shall not be taken into account in
calculating the extent of land held by such person.

(2) Where such conversion takes place as a result of any irrigation project
constructed at the cost of the Government, the land so converted shall be reduced to
standard hectares according to the proportion specified in clause (32) of section 2, and
the ceiling area of such person shall be fixed in accordance with the provisions of this
Act.

Decrease in number of members of family not to affect ceiling area

63. Notwithstanding anything contained in this Act, the extent of ceiling area which
a family is entitled to hold under the provisions of this Act, immediately after the date
of publication of the final statement under section 11 or section 13, shall not be reduced
by reason only of any decrease after the said date in the number of members of such
family.

Power of Government to issue orders and directions to

the authorised officer, etc.

64. The Government may issue such orders and directions of a general character as it
may consider necessary in respect of any matter relating to the powers and duties of the
authorised officer and the Land Commissioner and the authorised officer and the Land
Commissioner shall give effect to all such order and directions.

Transfer of any application or other proceeding from one

authorised officer to another

65. (1) On the application of any of the parties or of his own motion, the Land
Commissioner may at any stage after giving the parties a reasonable opportunity of
being heard, transfer any application or other proceeding under this Act pending before
an authorised officer to any other authorised officer for disposal.

(2) Where any application or proceeding has been transferred under

sub-section (1), the authorised officer to whom such transfer is made may, subject to
any special directions given in the order of transfer, either hold the inquiry de novo or
proceed from the stage at which the said application or other proceeding stood when it
was transferred.
 203

Returns and reports

66. The authorised officer or the Land Commissioner shall furnish to the
Government such returns statistics, accounts and other information as the Government
may, from time to time, require.

Authorised Officer empowered to obtain information from court, etc.

67. The authorised officer may obtain from any court, Land Tribunal or other
authority any information relating to any proceeding pending before the authorised
officer, and such court, Land Tribunal or authority, as the case may be, shall, if such
information be available with it, furnish him with such information within a reasonable
period.

Authorised officer empowered to obtain information from persons

68. (1) For the purpose of carrying into effect the provisions of this Act, the
authorised officer may, by notice, require any person to furnish any information
relating to the extent of land held by such person, the number of members of the family,
if any, of such person, and such other particulars as may be prescribed and the person
aforesaid shall furnish the information to the authorised officer within such time as may
be specified in the notice or within such further time not exceeding + [fifteen] days from
such period as the authorised officer may allow.

(2) (a) Where any person on whom notice under sub-section (1) has been
served fails to furnish the information within the time specified in that notice or within
the further time allowed by the authorised officer under sub-section (1), the authorised
officer may obtain, in such manner as may be prescribed, the necessary information
either by himself or through such agency as he thinks fit.

(b) The authorised officer shall, as soon as may be after obtaining the
information under clause (a), give to the person concerned a reasonable opportunity of
making his representation and of adducing evidence, if any, in respect of such
information and consider any such representation and evidence and pass such order as
he deems fit.

+ Amended as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77.
 204

Costs
69. The costs of, and incidental to, all proceedings before the authorised officer, Land
Commissioner, Land Tribunal or other authority shall be in his or its discretion.

Power to enter upon land

70. The authorised officer or any person acting under his orders may, at any time,
enter upon any land but not a dwelling-house, with such other officers or persons as he
considers necessary and make a survey and take measurements thereof or do any other
act which he considers necessary for carrying out the provisions of this Act.

Indemnity
71. (1) No suit, prosecution or other legal proceeding shall lie against the
authorised officer, Land Commissioner, Land Tribunal or other authority for anything
which is in good faith done or intended to be done in pursuance of this Act or any rule
or order made thereunder .
(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by virtue of any provision of this Act or by
anything which is in good faith done or intended to be done in pursuance of this Act or
any rule or order made thereunder.

Bar of jurisdiction of Civil Courts

72. Except as otherwise provided in this Act, no civil court shall have jurisdiction to
decide or deal with any question which is by or under this Act required to be decided or
dealt with by the authorised officer, the Land Commissioner, the Land Tribunal or other
authority.
Parties not to be represented by legal
practitioners before the authorised officer

+[72-A. Notwithstanding anything contained in any law for the time being in force,
no party to any proceeding under this Act shall be entitled to be represented by a legal
practitioner before the authorised officer:
Provided that the authorised officer may, in the interests of justice and for
reasons to be recorded in writing, allow any such party to be represented by a legal
practitioner at his own cost.
Explanation. – For the purposes of this section, "legal practitioner" has the same
meaning as in clause (1) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of
1961)].

+ Inserted as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.77
 205

Court fees

73. The court-fee payable in respect of-

(a) any suit under sub-section (3) of section 10, shall be twenty-five rupees;

(b) any appeal to the Land Tribunal under section 46, shall be five rupees;

(c) any appeal to the High Court under section 47, shall be twenty-five rupees;

(d) any application for revision by the Land Commissioner under section 49,
shall be one rupee;

(e) any application for revision by the High Court under section 50, shall be ten
rupees; and

(f) any other case, shall be such fee as may be prescribed.

Delegation of powers

74. The Government may, by notification, direct that any power exercisable by the
Land Commissioner or any authorised officer, under this Act or the rules made
thereunder, shall, in relation to such matters and subject to such conditions, as may be
specified in such notification, be exercisable also by such officer or authority
subordinate to the Government, as may be specified in the notification.

Power to remove difficulties

75. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, as occasion may require, by order, do anything which appears to it
necessary for the purpose of removing the difficulty;

Provided that no such order shall be made under this section after the
expiration of two years from the notified date.

Powers to make rules

76. (1) The Government may 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 –
 206

(a) the manner of service of notice under this Act;

(b) the manner of giving reasonable opportunity or of adducing evidence under

this Act.
(c) the place at which and the manner in which the draft statement under
sub-section (5) of section 9 and the final statement under section 11 or section 13 may be
published.

(d) the manner or service of a copy of the final statement under section 11 or
section 13;

(e) the manner of publication of a proclamation under clause (a) of sub-section

(2) of section 17;

(f) the manner in which the draft assessment roll may be published under
sub-section (3) of section 24;

(g) the manner of apportionment of the amount payable under this Act among
the persons claiming interest in such amount;

(h) the procedure to be followed by the authorised officer under this Act;

(i) the manner in which, and the officer by whom, fair rent shall be ascertained
for the purpose of this Act;

(j) the circumstances under which, and the conditions subject to which, and the
authority or officer before whom, any amount payable under this Act may be kept in
deposit;

(k) the manner of payment of the amount so deposited to the persons entitled
thereto;

(l) the manner of communicating to the party concerned every decision or

order in any proceeding against which an appeal or revision is provided for by this Act;
and

(m) any other matter which is to be or may be prescribed or provided for by

rules made under this Act.
 207

(3) All rules made under this Act and all orders made under section 75 shall be
published in the Official Gazette and, unless they are expressed to come into force on a
particular day, shall come into force on the day on which they are so published.

(4) Every rule made under this Act and every order made under section 75 shall,
as soon as possible after it is made, be laid before the Legislative Assembly,
Puducherry, while it is in session for a total period of fourteen days which may be
comprised in one session or in two successive sessions, and if before the session in
which it is so laid, or the session immediately following, the Legislative Assembly
makes any modification in the rule or decides that the rule or order should not be made
or issued, the rule or order shall thereafter have effect only in such modified form or be
of no effect, as the case may be, so, however, that any such modification or annulment
shall be without prejudice to the validity of anything previously done under that rule or
order.

Savings

77. + [ (1) Notwithstanding the amendment of section 9,21, 24, 25, 39 and 47 of the
principal Act by this Regulation, where any objection or claim or return could have
been preferred or furnished to the authorised officer, or where any appeal could have
been preferred to the High Court against the decision of the Land Tribunal before the
commencement of this Regulation but has not been so preferred or furnished before
such commencement, such objection or claim or return or appeal may be preferred or
furnished within the period specified in the relevant provision of the principal Act as if
this Regulation had not been made.

(2) An appeal preferred against any order or decision of the authorised officer
under clause (b) of sub-section (2) of section 8 or sub-section (3) or sub-section (4) or
sub-section (6) of section 9, of the Principal Act as it stood before the commencement of
this Regulation and pending on the date of such commencement shall be heard and
disposed of as if this Regulation had not been made].

+ Inserted as per the Puducherry Land Reforms (Amendment) Regulation, 1977 w.e.f 28.02.1977.
 208

SCHEDULE – I

(See sections 16, 24, 33, 36 and Schedule II)

PART - I

Land other than the land specified in Part – II

1. The amount payable to any person under section 24 in respect of any land (other
than the land specified in Part II) acquired by the Government under this Act shall be
determined in the manner hereinafter in this Part specified.

2. A sum equivalent to the net annual income from the land shall be determined in
the first instance.

3. The net annual income from the land shall be the amount of fair rent less the
land revenue.

Explanation.- In this paragraph, 'land revenue' shall in respect of any land mean
land tax levied in accordance with the Deliberation dated the 24th December, 1933 and
includes 50% surcharge levied pursuant to the Deliberation dated the 20th September,
1950 and centimes additional, and charge for water, if any.

4. The fair rent shall be the aggregate of –

(a) (i) in the case of wet land, 40 per cent of the average gross
produce or its value in money;

(ii) in the case of wet land, the irrigation of which is supplemented by

lifting water, 35 per cent of the average gross produce or its value
in money;

(iii) in the case of land on which crops which do not give any yield
within a period of one year from the time of cultivation, are
cultivated, 40 percent of the average gross produce or its value in
money;

(iv) in the case of any other class of land, 33-1/3 per cent of the average
gross produce or its value in money;
 209

Provided that in the case of lands referred to in items (ii) and (iv) for the
cultivation of which water is lifted by pump-set installed at the cost of the land owner,
the fair rent shall be increased to 40 per cent.

Explanation I – In this paragraph "average gross produce "-

(i) in respect of a land cultivated with any crop which does not give any
yield within a period of one year from the time of cultivation, means
the gross produce for one year if the land were cultivated with paddy;
(ii) in respect of a land cultivated with any other crop, means the produce
which would be obtained for one year from a land of the same class as
the land in question similarly situated and possessing similar
advantage if the rainfall and the seasons were normal.

Explanation II – In the case of land on which different crops are cultivated at

different times on different portions of the land, the fair rent shall be calculated with
reference to the actual crops ordinarily cultivated according to the ordinary rotation of
crops in the area in which such land is situated; and

(b) the value of one-fifth of straw or stalk of all the crops cultivated on the
land in an agricultural year.

5. In the case of land cultivated by the owner, the fair rent shall be the fair rent as
calculated in the manner specified in paragraph 4 in respect of a land of the same class
as the land in question, similarly situated and possessing similar advantages.

6. The amount payable for the land acquired by the Government under this Act,
which in no case shall exceed five thousand rupees per standard hectare, shall be
determined in accordance with the following scale, namely: -

(i) for the first sum of 5,000 or any portion thereof of the net annual
income from the land, 10 times such sum or portion;
(ii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 9 times such sum or portion;
(iii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 8 times such sum or portion;
(iv) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 7 times such sum or portion;
(v) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 6 times such sum or portion;
(vi) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 5 times such sum or portion;
 210

(vii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 4 times such sum or portion;
(viii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, 3 times such sum or portion;
(ix) for the balance of the net annual income from the land, 2 times such
balance.

7. (a) The amount payable for any building, machinery, plant, apparatus, wells,
filter points or power lines acquired under this Act shall be the written down value
determined in accordance with the provisions of the Income-tax Act, 1961 (Central Act
43 of 1961) of such building, machinery, plant, apparatus, wells, filter points or power
lines, on the date of the publication of the notification under sub-section (1) of section
17.
(b) The amount payable for any tree shall be the value of such tree on the date
of the publication of the notification under sub-section (1) of section 17.

8. The amount payable under this Part shall be the aggregate of the amount as
calculated under paragraph 6 and 7 less the amount payable under section 28 to the
tenant, in respect of the land concerned.

PART – II

Land Revenue of which or portion thereof has been assigned

Where the amount of land revenue or portion thereof in respect of any land
acquired by the Government under this Act has been assigned in favour of any person,
the Government shall pay such person an amount equal to ten times the difference
between such amount of land revenue or portion thereof and the proportionate reduced
rent, if any, payable by such person to the Government.

SCHEDULE – II

(See section 28)

The amount payable to any tenant under section 28 shall be one-eighth of the fair
rent for the land calculated in the manner specified in paragraph 4 of Part I of
Schedule -I.

2. Out of the said amount, three-fourths shall be paid to the cultivating tenant and
one-fourth to the intermediary, if any.

______
 211

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.9 OF 1974

There is great disparity in the ownership of agricultural lands leading to the

concentration of such lands in the hands of certain persons. Article 39 (b) and (c) of the
Constitution lays down that the material resources of the community should be so distributed
as best to sub serve the common good and that the operation of the economic system should not
result in the concentration of wealth and means of production to the common detriment. In the
context of these directive principles, it is necessary to reduce the disparity by fixing a ceiling on
the holdings.

The Bill fixes ceiling not only on the owner-ship of holdings, but also on the lands held
by the cultivating tenants. It lays down that unless otherwise provided, no person either as
owner or as tenant owns or cultivates lands in excess of the prescribed extent. It shall extend to
Puducherry and Karaikal regions. It also imposes ceiling on future acquisition. The surplus
lands acquired by the Government shall be disposed of in the manner to be prescribed by the
Government in the rules.

The provisions of the Bill shall not apply to lands held by religious trusts of public
nature or by religious institutions.

The Bill seeks to achieve the above objects.

______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.7 OF 2003

The Puducherry Land Reforms (Fixation of Ceiling on Land) Act, 1973 was enforced
with effect from 22-9-1974 in the regions of Puducherry and Karaikal in the Union Territory of
Puducherry. Under the provisions of section 34 of the said Act, the surplus land can be utilised
for agricultural purpose only. So far surplus lands taken over possession by this administration
have been distributed to the agricultural labourers and others for cultivation purpose only and
not for any other purposes. Due to efflux of time, certain lands which were taken possession
under the Act without encumbrance, have lost their basic characteristics as agricultural lands
due to the process of urbanisation of the surrounding areas which have been converted into
house-sites, rendering it impossible to carry on agricultural activities any longer effectively.

At the same time, there has been a growing demand on the Government for providing
lands for other public purposes like construction of hospital, educational institution and for
other basic amenities, etc. It is therefore proposed to bring an amendment in the Puducherry
Land Reforms (Fixation of Ceiling on Land) Act, 1973, empowering the Government to reserve
such surplus land, which cannot be otherwise used for agricultural purposes, for any other
public purpose.

The Bill seeks to achieve the above objects.

______
 212

THE PUDUCHERRY EXCISE (EXTENSION) ACT, 1980.

(Act No. 4 of 1980)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title.
2. Definitions.
3. Extension of the Puducherry Excise Act, 1970 to other regions.
4. Suspension of operation of Prohibition Regulation.

_____
 213

THE PUDUCHERRY EXCISE (EXTENSION) ACT, 1980.

(Act No. 4 of 1980)

(3-4-1980)
AN ACT

to provide for the extension of the Puducherry Excise Act, 1970 to Puducherry
and Karaikal regions and for matters connected therewith or incidental thereto.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-first Year

of the republic of India as follows:-

Short title, extent and commencement.

1. (1) This Act may be called the Puducherry Excise (Extension) Act, 1980.
(2) It extends to the whole of the Union territory of Puducherry.
*(3) It shall come into force on such date as the Government may, by
notification in the Official Gazette, appoint.

Definitions.

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

(a) “Government” means the Administrator of the Union territory of

Puducherry appointed under article 239 of the Constitution;
(b) “Prohibition Regulation” means the Puducherry Prohibition
Regulation, 1979, promulgated by the President under clause (1) of
article 240 of the Constitution; and
(c) “region” means any of the four regions of the Union territory of
Puducherry namely, Puducherry, Karaikal, Mahe and Yanam.

Extension of the Puducherry Excise Act, 1970 to other regions.

3. (1) The Puducherry Excise Act, 1970 as in force n Mahe and Yanam regions,
immediately before the commencement of this Act, is hereby extended to, and shall be
in force, on such commencement, in the other regions, namely, Puducherry and
Karaikal, in relation to which it was repealed by the Prohibition Regulation.

* This Act came into force w.e.f 25.4.1980 vide Notification published in EG No. 57, dated 24.4.80
 214

(2) Notwithstanding anything contained in sub-section (1), any licence or

permit issued or granted but not cancelled or suspended under the Prohibition
Regulation shall be deemed to have been issued or granted, as the case may be, under
the corresponding provisions of the Puducherry Excise Act, 1970, as extended by this
Act, and shall continue in force unless and until it is cancelled or suspended or
superseded by anything done or any action taken under the provisions of the Act.

Suspension of operation of Prohibition Regulation.

4. (1) Notwithstanding anything contained in the Prohibition Regulation, the

operation of the said Regulation is hereby suspended on and from the commencement
of this Act.

(2) Save as provided in section 3, nothing in sub-section (1) shall affect-

(a) The previous operation of the Prohibition Regulation or any provision
thereof or anything duly done or suffered thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or
incurred under the Prohibition Regulation; or
(c) any penalty, forfeiture or punishment incurred in respect of any
offence committed against the Prohibition Regulation; or
(d) any investigation, legal proceeding or remedy in respect of any such
right, privilege, obligation, liability, penalty, forfeiture or punishment
as aforesaid;

and any such investigation, legal proceeding or remedy may be instituted, continued or
enforced, and any such penalty, forfeiture or punishment may be imposed as if this Act
had not been passed.

____
 215

THE INDIAN SUCCESSION (EXTENSION TO PUDUCHERRY)

ACT, 1980

(Act No. 10 of 1980)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title
2. Definitions
3. Extension of Central Act 39 of 1925 to Puducherry
IA. Act not to apply to Renoncants
4. Repeal and saving
5. Rules of construction
6. Power to remove difficulties

________
 216

THE INDIAN SUCCESSION (EXTENSION TO PUDUCHERRY)

ACT, 1980

(Act No. 10 of 1980)

(13-9-1980)
AN
ACT

to extend the Indian Succession Act, 1925, to the Union territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-first Year of

the Republic of India as follows: -
Short title

1. This Act may be called the Indian Succession (Extension to Puducherry) Act, 1980.
Definitions

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

(a) “Administrator” means the Administrator of Puducherry appointed by the

President under article 239 of the Constitution;
(b) “Puducherry” means the Union territory of Puducherry.

Extension of Central Act 39 of 1925 to Puducherry

3. The Indian Succession Act, 1925 (hereinafter referred to as the said Act), shall
extend to the Union territory of Puducherry, subject to the following modifications,
namely:-
(i) Section 1 of the said Act shall be renumbered as sub-section (1) thereof,
and after sub-section (1) as so renumbered, the following sub-section
shall be inserted, namely:-

*“(2) It shall come into force in the Union territory of Puducherry on such date
as the Administrator of that Union territory may, by notification in the Official Gazette,
appoint:

Provided that different dates may be appointed for different provisions of this Act,
and any reference in any such provision to the commencement of this Act shall be
construed as a reference to the coming into force of that provision”;

+ This Act came into force w.e.f 1.11.1982 vide Notification published in EG pt. I No. 34 dt. 01.04.82.
 217

(ii) after section 1 as so amended, the following section shall be inserted,

namely:-
Act not to apply to Renoncants

“IA. Nothing contained in this Act shall apply to the Renoncants of the Union
territory of Puducherry.”
Repeal and saving

4. (1) Any law in force in Puducherry or any area thereof corresponding to the said
Act or any provision thereof (except in so far as such law continues to be applicable to
Renoncants) shall stand repealed as from the coming into force of the said Act or
provision, as the case may be, in Puducherry.

(2) Nothing in sub-section (1) shall affect –

(a) the previous operation of any law so repealed or anything duly done
or suffered thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or incurred
under any law so repealed; or
(c) any penalty, forfeiture or punishment incurred in respect of any offence
committed against any law so repealed; or
(d) any investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid,

and any such investigation, legal proceeding or remedy may be instituted,

continued or enforced and any such penalty, forfeiture or punishment may be imposed
as if this Act had not been passed.

Provided that anything done or any action taken under any such law shall be
deemed to have been done or taken under the corresponding provision of said Act and
shall continue to be in force accordingly unless and until superseded by anything done
or any action taken under the said Act.

Rules of construction
5. (1) In the said Act, --

(a)any reference to any provision of law not in force, or to any functionary not
in existence, in Puducherry shall be construed as a reference to the corresponding law
in force, or to the corresponding functionary in existence, in that Union territory:
Provided that ---
(i) if any question arises as to who such corresponding functionary is, or
(ii) if there is no such corresponding functionary,
 218

the Administrator shall decide as to who such functionary will be and his decision shall
be final;
(b) any reference to the State Government shall be construed as a reference to
the Central Government and also as including a reference to the Administrator.

(2) For the purpose of facilitating the application in relation to Puducherry of

the said Act, any court or other authority may construe it in such manner, not affecting
the substance, as may be necessary or proper to adapt it to the matter before the court or
other authority.
Power to remove difficulties

6. If any difficulty arises in giving effect in Puducherry to the provisions of the said
Act, the Administrator may, as occasion may require, by order notified in the Official
Gazette, make such provisions or give such directions, not inconsistent with the
provisions of the said Act, as appear to him to be necessary for the removal of the
difficulty; and any such order may provide for the transfer of any matter pending
before any court, tribunal or other authority immediately before the commencement of
the said Act in Puducherry to any corresponding court, tribunal or authority for
disposal:

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

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.10 OF 1980

The question of extending the Indian Succession Act, 1925 to the Union territory
of Puducherry has been engaging the attention of this Administration for quite some
time. Various seminars have been conducted by this Administration on the advice of
the Government of India to elicit public opinion on the proposal. After examination, it is
proposed to extend the Indian Succession Act, 1925, to fall in line with other parts of the
country in the matter of succession, with provision that it shall not apply to
"Renoncants" as in the case of other personal laws extended to this Union territory.

The Bill seeks to achieve the above object.

______
 219

THE PUDUCHERRY KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1980.

(Act No. 11 of 1980)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER - I
Preliminary

[Link] title, extent and commencement

2. Definitions
CHAPTER – II

3. Establishment and constitution of the Board

4. Constitution of the Board
4.A. No disqualifications in certain cases
5. Secretary of the Board
6. Resignation of office by member
7. Vacancies amongst members or defects in the constitution of the Board not to
invalidate acts or proceedings of the Board
8. Temporary association of persons with the Board for particular purposes
9. Meetings of the Board
10. Term of office and conditions of appointment of members
11. Officers and servants of the Board
12. Standing Finance Committee
CHAPTER – III
13. Functions of the Board
14. General powers of the Board
15. Power of Government to give directions

CHAPTER – IV
Finance, Accounts, Audit and Reports

16. Transfer of property to the Board

17. Funds of the Board
18. Subventions, loans and grants to the Board
19. Power of the Board to spend
20. Budget
21. Borrowing of money
22. Accounts and Audit
 220

23. Power to alter scheme

24. Power to write off irrecoverable amount
25. Recovery of arrears
26. Returns and reports
CHAPTER – V
Miscellaneous
27. Dissolution of the Board
28. Preparation and submission of annual programme and establishment Schedule
29. Members, officers and other servants of the Board to be public servants
30. Protection for acts done in good faith
31. Power to make rules
32. Power to make standing orders
33. Operation of other laws not affected
34. Dissolution of non-statutory Board and vesting of its assets and liabilities in Board,
etc.

______
 221

THE PUDUCHERRY KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1980.

(Act No. 11 of 1980)

(5-12-1980)
AN

ACT

to provide for the establishment of a Board for the development of Khadi and
village industries and for matters connected therewith in the Union territory of
Puducherry.
BE it enacted by the Legislative Assembly of Puducherry in the Thirty-first Year of
the Republic of India as follows: -
CHAPTER - I
Preliminary
Short title, extent and commencement
1. (1) This Act may be called the Puducherry Khadi and Village Industries Board
Act, 1980.
(2) It extends to the whole of the Union territory of Puducherry.
+(3) It shall come into force on such date as the Government may, by notification
in the Official Gazette, appoint.
Definitions
2. In this Act, unless there is anything repugnant in the subject or context,-

(a) "Board" means the Puducherry Khadi and Village Industries Board
established under section 3;
(b) "Chairman" means the Chairman of the Board;
(c) "Commission" means the Khadi and Village Industries Commission
established under section 4 of the Khadi and Village Industries Commission Act, 1956
(Central Act 61 of 1956);
(d) "Government" means the Administrator of the Union territory of
Puducherry appointed by the President under article 239 of the Constitution;
(e) "khadi" means any cloth woven on hand looms in India from cotton, silk
or woolen yarn, hand-spun in India or from a mixture of any two, or all of such yarns
and includes ready-made garments made out of such cloth;
(f) "member" means a member of the Board and includes its Chairman;
(g) "non-statutory Board" means the Khadi and Village Industries Board
constituted by the Government by an executive order and functioning in the Union
territory on the date of commencement of this Act;
(h) "prescribed" means prescribed by rules made under this Act;
(i) "Secretary" means the Secretary of the Board appointed under section 5;

+ This Act came into force w.e.f 15.05.1981 vide Notification published in [Link] No. 49
dt. 6.5.1981 of the Development Department, Puducherry.
 222

(j) "Standing orders" means standing orders issued under section 32;
(k) "Vice-Chairman" means the Vice-Chairman of the Board;
(l) "village industries" means, -
(i) all or any of the industries specified in the Schedule to the Khadi and
Village Industries Commission Act, 1956 (Central Act 61 of 1956); and
(ii) any industry specified in this behalf by the Government by
notification in consultation with the Board;
and includes any other industry deemed to be specified in the said Schedule by reason
of a notification under section 3 of the said Act; and
(m) "Union territory" means the Union territory of Puducherry.

CHAPTER – II
Establishment and constitution of the Board

Establishment of the Board

3. There shall be established, by notification in the Official Gazette, a Board, to be
called the Puducherry Khadi and Village Industries Board, which 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.

Constitution of the Board

4. (1) The Board shall consist of not more than nine and not less than five members
including the Chairman and the Vice-Chairman, of whom not more than four shall be
officers serving under the Government. The appointment of members shall be made by
the Government and shall be published in the Official Gazette.
(2) One of the members of the Board shall be appointed by the Government,
*[omitted] as the Chairman of the Board.
(3) The Government may appoint, *[omitted] one of the other members
as the Vice-Chairman who shall exercise such of the powers and perform such of the
duties of the Chairman, as may be prescribed or as may be delegated to him by the
Chairman.
(4) The non-official members of the Board shall be appointed from among
persons who in the opinion of the Government have shown an active interest in the
production and development of khadi or in the development of villages industries.

No disqualifications in certain cases

1[4A.
No person shall be disqualified for being chosen as, or for being a
member of the Legislative Assembly by virtue only of the fact that he is a Chairman,
Vice-Chairman or a Member of the Board].

* Omitted vide S.4(2), 4(3) Act No.14 of 1994.

1 Inserted vide S.3 Act No.14 of 1994 w.e.f 17-11-1994 and published in the Extraordinary Gazette Part-II No.24
dated 21-11-94.
 223

Secretary of the Board

5. The Government may, *[omitted] appoint an officer under it as Secretary to the

Board, who shall be an ex-officio member of the Board.

Resignation of office by member

6. Any non-official member may resign his office by giving notice in writing to the
Government, and on such resignation being notified in the Official Gazette, he shall be
deemed to have vacated his office.

Vacancies amongst members or defects in the constitution

of the Board not to invalidate acts or proceedings of the Board

7. No act or proceedings of the Board shall be invalid by reason only of the

existence of any vacancy amongst its members or any defect in the constitution thereof.

Temporary association of persons with the Board for particular purposes

8. The Board may, with the approval of the Government, invite any person to
attend a meeting of the Board for the purpose of advising or assisting the Board in any
manner. The person so invited may take part in the discussions of the Board but shall
have no right to vote.

Meetings of the Board

9. (1) The Board shall meet at such times and places and shall, subject to the
provisions of sub-sections (2), (3) and (4), observe such rules of procedure in regard to
quorum and transaction of business at its meetings as may be provided by standing
orders made by the Board under this Act:

Provided that the Board shall meet at least once in every two months.

(2) The Chairman may, whenever he thinks fit, call a special meeting of the
Board.

(3) The Chairman, or in his absence, the Vice-Chairman, or in the absence of

both, such other person as may be chosen by the members present from amongst
themselves, shall preside at a meeting of the Board.

* Omitted vide S.4 Act No.14 of 1994.

 224

(4) All questions at a meeting of the Board shall be decided by a majority of the
votes of the members present and voting; and in the case of an equality of votes, the
Chairman or in his absence, the person presiding, shall have a second or casting vote.

(5) The minutes of the meeting of the Board shall be forwarded to the
Government and the Commission within fifteen days of every meeting.

Term of office and conditions of appointment of members

10. The term of office and the terms and conditions of appointment of the members
of the Board shall be such as may be prescribed.

Officers and servants of the Board

11. (1) The Secretary shall exercise such powers and discharge such duties as may
be prescribed or as may, from time to time, be delegated to him by the Government or
by the Chairman.

(2) Subject to such standing orders as may be made by the Board in this
behalf, the Board may appoint a Financial Adviser-cum-Chief Accounts Officer
* [omitted] and such other officers and servants as it considers necessary for the efficient
performance of its functions.

Standing Finance Committee

12. The Board may constitute a standing finance committee consisting of the
Vice-Chairman and not more than three members. The Vice-Chairman shall be the
president of the committee. The committee shall exercise such powers and perform such
functions relating to the finances of the Board as may be laid down by the standing
orders.

CHAPTER – III

Functions of the Board

Functions of the Board

13. (1) Subject to the provisions of this Act, the functions of the Board shall
generally be to plan, organise and implement programmes for the development of
khadi and village industries.

* Omitted vide S. 5 Act No.14 of 1994.

 225

(2) In particular and without prejudice to the generality of the foregoing power,
the Board may take such steps as it may think fit –

(a) to start, encourage, assist and run khadi and village industries;
(b) to provide deserving persons with work through the organisation of khadi
and village industries;
(c) to grant loans and give other assistance for the development of khadi and
village industries;
(d) to organize co-operative societies and institutions registered under the
Societies Registration Act, 1860 (Central Act 21 of 1860.) or similar other Acts for the
development of khadi and village industries;
(e) to conduct training centres and train persons at such centres or at other
centres outside the Union territory of Puducherry in khadi and village industries;
(f) to arrange for the supply of raw materials, tools and implements to such
industries and for the sale of their finished products;
(g) to arrange for the publicity and popularisation of the finished products of
such industries by activities such as opening of stores, shops, emporia or organising
exhibitions;
(h) to educate public opinion and cultivate in the public a preference for such
industries and for utilisation of their products;
(i) to encourage and promote research in the techniques of production of
khadi and in the development of village industries;
(j) to seek and obtain advice and guidance of experts;
(k) to provide facilities for a study of the problems relating to khadi or village
industries;
(l) to arrange or assist in the sale and marketing of the products of khadi and
village industries; and
(m) to discharge such other duties and to perform such other functions as the
Government may direct for the purpose of carrying out the objects of this Act.

General powers of the Board

14. The Board shall for the purpose of carrying out its functions under this Act
have the following powers, namely:-

(i) to acquire and hold movable and immovable property as it deems

necessary and to lease, sell or otherwise transfer any such property:

Provided that any lease, sale or other transfer to any person or authority other
than the Commission of any immovable property belonging to the Board shall be null
and void unless it is sanctioned by the Government;
 226

(ii) to appoint a committee or committees for securing the efficient

performance of its functions and, in particular, for ensuring that such
functions are performed with due regard to the requirements of the
local area concerned;
(iii) to incur expenditure and undertake any work in any area in the
Union territory for the framing and execution of such schemes as it
may consider necessary for the purpose of carrying out the
provisions of this Act, or as may be entrusted to it by the
Government; and
(iv) to enter into any contract and to do all things necessary for the
purpose of this Act.

Power of Government to give directions

15. In the performance of its functions under this Act, the Board shall be bound by
such directions as the Government or the Commission may give to it from time to time.

CHAPTER – IV

Finance, Accounts, Audit and Reports

Transfer of property to the Board

16. The Government may transfer to the Board any building, land or other
property, movable or immovable for the use of and management by the Board on such
conditions and subject to such limitations as may be imposed by the Government.

Funds of the Board

17. (1) The Board shall have two separate funds to be called the Khadi Fund and
the Village Industries Fund and all grants and advances made to the funds from time to
time by the Government for the purposes of the development of khadi or the
development of village industries and all other grants, subventions, gifts and loans
received from the Central Government or the Commission or any local authority or any
body or organisation, whether incorporated or not, or any individual for all or any of
the purposes of this Act shall be paid to the Khadi Fund or Village Industries Fund, as
the case may be, and all payments by the Board for, or in respect of khadi and village
industries shall be made from the appropriate fund.

(2) Except as otherwise directed by the Government, all moneys belonging to

such funds shall be deposited in such manner as the Government may, by general or
special order, direct or be invested in such securities as may be approved by the
Government.
 227

Subventions, loans and grants to the Board

18. (1) The Government may, from time to time, make subventions and grants to the
Board for the purposes of this Act on such terms and conditions as the Government
may, in each case, determine.
(2) The Government may, from time to time, advance loans to the Board on such
terms and conditions not inconsistent with the provisions of this Act as the Government
may determine.
(3) The Board shall have power to receive financial assistance from the
Commission in the form of loan, grant, subsidy or in any other form with or without
security, or on the security of a mortgage, charge, hypothecation of any of its movable
and immovable assets.
Power of the Board to spend
19. Subject to the provisions of section 20, the Board shall have power to spend
such sums as it deems fit for purposes authorised by this Act:

Provided that nothing in this section shall be deemed to prevent the Board from
spending, with the previous approval of the Government, such moneys as it thinks fit,
for any such purpose outside the Union territory.

Budget
20. (1) The Board shall, by such date in each year as may be prescribed, prepare and
submit to the Government for approval two separate budgets in the prescribed form
for the next financial year to be called the Khadi Budget and the Village Industries
Budget, showing the estimated receipt and expenditure in respect of khadi and village
industries respectively during that financial year.
(2) Subject to the provisions of sub-sections (3) and (4), no sum shall be
expended by or on behalf of the Board unless such expenditure is covered by a specific
provision in the budget approved by the Government and the Commission.
(3) The Board may, within the respective limits of the Khadi Budget and the
Village Industries Budget and to the extent as may be approved by the Commission,
sanction any re-appropriation from one head of expenditure to another or from a
provision made for one scheme to that in respect of another, but in no case shall a
re-appropriation of fund be made from the Khadi Budget to the Village Industries
Budget or from the Village Industries Budget to the Khadi Budget:

Provided that no re-appropriation from the head “loan” to any other head of
expenditure and vice-versa in either budget shall be sanctioned by the Board except
with the previous approval of the Government and the Commission.
(4) The Board may, subject to the provisions contained in sub-section (3), incur
expenditure in excess of the limit provided in the budget approved by the Government
under any head of expenditure or in connection with any particular scheme so long as
the aggregate amount in either budget approved by the Government is not exceeded.
 228

Borrowing of money
21. Subject to such rules as may be made in this behalf by the Government, the
Board shall have power to borrow on the security of the Khadi Fund or the Village
Industries Fund or any other asset for any purpose to which such fund or asset may be
applied.
Accounts and Audit
22. (1) The Board shall maintain proper accounts and other relevant records and
prepare an annual statement of accounts including the profit and loss accounts and the
balance sheets in such form as may be prescribed.
(2) The accounts of the Board shall be audited by such person as the
Government may appoint in this behalf.
(3) The person appointed under sub-section (2) shall, in connection with such
audit, have such rights, privileges and authority, as may be prescribed and in
particular, such auditor shall have the right to demand the production of books,
accounts, connected vouchers and other documents and to inspect any of the offices of
the Board.
(4) The accounts of the Board as certified by such auditor together with the
audit report thereon shall be forwarded annually to the Government and the
Commission before such date as the Government may specify in this behalf.
(5) The Board shall comply with such directions as the Government or the
Commission may, after perusal of the report of the auditor, think fit to issue.
Power to alter scheme
23. The Board may, with the previous approval of the Commission, make any
alteration in any scheme so long as the aggregate amount sanctioned for the scheme is
not exceeded.
Power to write off irrecoverable amount
24. The Board may write off any amount due to it, whether under a contract or
otherwise, or any sum payable in connection therewith, if in its opinion such amount or
sum is irrecoverable:
Provided that the Board shall, before writing off any such amount or sum
exceeding rupees three thousand, obtain the sanction of the Government.
Recovery of arrears
25. If any amount due to the Board in accordance with the terms of a contract or
otherwise howsoever or any sum payable in connection therewith, has not been paid,
the Board may, without prejudice to any other remedy provided by law, recover such
amount or sum as arrears of land revenue.
Returns and reports
26. (1) The Board shall furnish to the Government and the Commission at such time
and in such form and manner as may be prescribed or as the Government or the
Commission may direct, such returns and statements and such particulars in regard to
any proposed or existing programme for the promotion and development of khadi and
village industries as the Government and the Commission may, from time to time,
require.
 229

(2) Without prejudice to the provisions of sub-section (1), the Board shall, as
soon as possible after the end of each financial year, submit to the Government an
annual report in such form and before such date as may be prescribed, giving a true and
full account of its activities, policy and programme during the previous financial year.
(3) The annual report furnished by the Board to the Government under
sub-section (2) shall, as soon as possible after it is so furnished, be placed on the table of
the Legislative Assembly.
CHAPTER – V
Miscellaneous

Dissolution of the Board

27. (1) If at any time the Government is satisfied that –

(a) the Board has, without reasonable cause or excuse, made default in the
discharge of its duties, or in the performance of its functions, imposed or entrusted by
or under this Act, or exceeded or abused its powers, or
(b) circumstances have so arisen that the Board is rendered unable, or may be
rendered unable to discharge its duties or perform its functions under this Act, or
(c) it is otherwise expedient or necessary to dissolve the Board.

the Government may, by notification, dissolve the Board for such period as may be
specified in the notification and declare that the duties, powers and functions of the
Board shall, during the period of its dissolution, be discharged, exercised and
performed by such person or authority, as may be specified in the notification:

Provided that the Government shall, before dissolving the Board, give a
reasonable opportunity to it to show cause against the proposed action.

(2) The Government shall, before the expiration of the period of dissolution,
re-constitute the Board in accordance with the provisions of section 4.
(3) The Government may make such incidental and consequential provisions as
may appear to it to be necessary for giving effect to the provisions of this section.
(4) Any notification issued or order made by the Government under this section
shall not be questioned in any civil court.
(5) On the Board being dissolved under sub-section (1) –

(i) all funds and other properties vested in, and realisable by, the Board
shall, during the period of dissolution, vest in, and be realisable by,
the Government; and
(ii) all claims and liabilities, legally subsisting and enforceable by or
against the Board, shall be enforceable by or against the Government:
 230

Provided that no such liability shall be enforceable against the Government except
to the extent of the funds and properties vested in the Government under clause (i):
Provided further that the liabilities, if any, of the Commission legally subsisting
and enforceable against the Board shall be enforceable against the Government in
entirety irrespective of the funds and properties vested in the Government under
clause (i).
Preparation and submission of annual programme
and establishment Schedule

28. (1) In each year on or before such date as may be fixed by the Government in this
behalf, the Board shall in such form as may be prescribed, prepare and forward to the
Government –
(a) a programme for the promotion of khadi and village industries; and
(b) a Schedule of the staff of officers and servants employed and to be
employed during the next year.

(2) The programme shall contain –

(a) particulars of the schemes which the Board proposes to execute whether
in part or in whole during the next year;
(b) particulars of any work which the Board proposes to execute or any
undertaking which the Board proposes to organise during the next year for the purpose
of performing its functions under this Act; and
(c) such other particulars as may be prescribed.
(3) The Government may approve and sanction the programme and schedule of
the staff of officers and servants forwarded to them under sub-section (1) with such
modifications as they may deem fit.
(4) The Board may submit a supplementary budget and supplementary
programme for the sanction of the Government in such form and before such date as
the Government may prescribe and the provisions of section 20 and sub-sections (1) to
(3) (both inclusive) shall, respectively, apply to such supplementary budget and
programme.
Members, officers and other servants of the Board to be public servants
29. The members, officers and other servants of the Board shall be deemed to be
public servants within the meaning of section 21 of the Indian Penal Code (Central Act
45 of 1860).
Protection for acts done in good faith
30. (1) No suit, prosecution or other legal proceedings shall lie against the Chairman,
Vice-Chairman, Secretary or any member or any person in the employment of the Board
for any thing which is, in good faith done or intended to be done in pursuance of this
Act.
(2) Save as otherwise expressly provided in this Act, no suit or other legal
proceeding shall lie against the Board for any damage caused or likely to be caused by
anything which is, in good faith done, or purported to be done, under this Act.
 231

Power to make rules

31. (1) The Government may, by notification in the Official Gazette, make rules to
give effect to 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 place at which the office of the Board shall be located;
(b) the term of office of, and the manner of filling casual vacancies among, the
members of the Board and the terms and conditions of service of Vice-Chairman, the
Secretary and the other members of the Board, including the salaries and allowances to
be paid to them and travelling and daily allowances to be drawn by them;
(c) the disqualifications for membership of the Board and the procedure to be
followed for removing a member who is or becomes subject to any disqualification;
(d) the procedure to be followed in the performance of functions by members
of the Board;
(e) the powers and duties to be exercised and discharged by the Secretary;
(f) the date by which and the form in which the budget and the
supplementary budget shall be prepared and submitted each year under section 20 and
sub-section (4) of section 28;
(g) the procedure to be followed and the conditions to be observed in
borrowing moneys and in granting loans;
(h) the procedure to be followed for placing the Board in possession of funds;
(i) the conditions subject to which and the mode in which contracts may be
entered into by or on behalf of the Board;
(j) the form and manner in which the accounts of the Board shall be
maintained under section 22;
(k) the form and manner in which the returns, reports or statements shall be
submitted under section 26; and
(l) any other matter which has to be or may be prescribed.

(3) All rules made and all notifications issued under this Act shall, as soon as
possible after they are made or issued, be placed on the table of the Legislative
Assembly of the Union territory and shall be subject to such modification by way of
amendment or repeal as the Legislative Assembly may make within fourteen days on
which the House actually sits either in the same session or in more than one session:

Provided however that any modifications or annulment shall not affect the
validity of anything already done and acted upon under such rules and notifications by
the Board.
Power to make standing orders
32. (1) The Board may, with the previous sanction of the Government, by notification
in the Official Gazette, issue standing orders not inconsistent with this Act and the rules
made thereunder for enabling it to perform its functions under this Act.
 232

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

(a) the terms and conditions of appointment and service and the scales of pay
of officers and servants of the Board other than the Secretary including the payment of
travelling and daily allowances in respect of journeys undertaken by such officers and
servants for the purpose of this Act.
(b) the time and place of meeting of the Board, the procedure to be followed
in regard to transaction of business at such meetings and the quorum necessary for the
transaction of such business at the meeting;
(c) the delegation of powers and duties to the standing finance committee,
Secretary or any employee of the Board;
(d) the maintenance of minutes of meetings of the Board and the transmission
of copies thereof to the Government and the Commission;
(e)the persons by whom and the manner in which payments, deposits and
investments may be made on behalf of the Board;
(f) the custody of moneys required for the current expenditure of the Board
and investment of moneys not so required; and
(g) the maintenance of accounts.

(3) The Government may, by notification, rescind any standing order made
under this section and thereupon, the standing order shall cease to have effect.

Operation of other laws not affected

33. The provisions of this Act shall be in addition to and not in derogation of, any
other law for the time being in force in the Union territory and relating to khadi and
village industries.
Dissolution of non-statutory Board and vesting of its
assets and liabilities in Board, etc.
34. On the commencement of this Act, the non-statutory Board shall stand
dissolved, and –
(i) all its assets rights, powers, authorities and privileges and all property,
movable and immovable, cash balances, reserve funds, book debts, investments and all
other rights and interests in, or arising out of, such property as were, immediately
before such commencement in the ownership, possession, power or control of such
Board shall vest in and stand transferred to the Board;
(ii) all borrowings, liabilities and obligations of whatever kind subsisting in
relation to the non-statutory Board immediately before the commencement of this Act,
shall stand transferred to the Board;
(iii) all loans, grants and financial assistance sanctioned by the Government or
by the Commission or any other authority to the non-statutory Board shall be deemed
to be loans, grants and financial assistance sanctioned to the Board and shall be the
liability of the Board;
 233

(iv) all contracts, deeds, bonds, agreements, powers of attorney, grants of

legal representation and other instruments of whatever nature in relation to the
non-statutory Board subsisting on and having effect immediately before the
commencement of this Act and to which the non-statutory Board is a party or which are
in its favour shall be of as full force and effect against or in favour of the Board and may
be enforced or acted upon as fully and effectively as if in the place of the non-statutory
Board, the Board had been a party thereto or as if they had been issued in favour of the
Board.
______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 11 OF 1980

The Government of Puducherry has constituted a non-statutory Board called the "Khadi
and Village Industries Board, Puducherry", with a view to promoting and developing khadi
and village industries in the union territory of Puducherry. The board is vested with powers to
prepare and organise programmes for the production and development of khadi and village
industries, and to deal with other matters incidental thereto. It has, however, been found by
experience that the Board can function more effectively only if it is made a statutory body,
vested with powers executive, administrative and financial, for the proper development of
khadi and village industries.
The present Bill seeks to achieve he above object.

_____

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.14 OF 1994

In accordance with the existing provisions of the Puducherry Khadi and Village
Industries Board Act, 1980, the Government has been consulting the Khadi and Village
Industries Commission, while appointing the Chairman, Vice-Chairman, Secretary to the Board
and Financial Advisor-cum-Chief Accounts Officer in the Puducherry Khadi and Village
Industries Board, Puducherry. The Khadi and Village Industries Commission have reviewed
the need for such consultation and suggested to dispense with the formality of amendment of
sections 4(2), 4(3), 5 and 11(2), and that whenever there is a necessity for the appointment of
Chairman, Vice-Chairman, Secretary and Financial Advisor-Cum-Chief Accounts Officer, the
Government of Puducherry can make such appointments directly without consultation with the
Commission.

2. The Puducherry Khadi and Village Industries Board Act, 1980 does not debar
non-officials to be appointed as Chairman, Vice-Chairman and Members of the Board.
Nevertheless, it is felt desirable to include a suitable provision in that Act to prevent
disqualification of such Chairman, Vice-Chairman and Members for being chosen as or for
being the Members of the Legislative Assembly, by way of abundant caution.

3. The Bill seeks to achieve the above objects.

______
 234

THE WOMEN’S AND CHILDREN’S INSTITUTIONS (LICENSING) ACT

(EXTENSION TO PUDUCHERRY) ACT, 1981

(Act No.8 of 1982)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title
2. Definitions
3. Extension of Central Act 105 of 1956 to Puducherry
4. Amendment of section 11
5. Rule of construction

_____
 235

THE WOMEN’S AND CHILDREN’S INSTITUTIONS (LICENSING) ACT

(EXTENSION TO PUDUCHERRY) ACT, 1981

(Act No.8 of 1982)

(15-6-1982)
AN
ACT

to extend the Women’s and Children’s Institutions (Licensing) Act, 1956 to the
Union territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-second

year of the Republic of India as follows: -

Short title

1. This Act may be called the Women’s and Children’s Institutions (Licensing) Act
(Extension to Puducherry) Act, 1981.

Definitions

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

(a)"Administrator" means the Administrator of Puducherry appointed by

the President under article 239 of the Constitution;

(b) "Puducherry" means the Union territory of Puducherry.

Extension of Central Act 105 of 1956 to Puducherry

3. The Women’s and Children’s Institutions (Licensing) Act, 1956 (hereinafter

referred to as the said Act), shall extend to Puducherry.

Amendment of section 11

4. In the said Act, after sub-section (2) of section 11, the following sub-section
shall be inserted, namely: --
 236

"(3) All rules made and all notifications issued under this Act shall, as soon as
possible after they are made or issued, be placed on the table of the Legislative
Assembly of Puducherry and shall be subject to such modification by way of
amendment or repeal as the Legislative Assembly may make within fourteen days on
which the House actually sits either in the same session or in more than one session:

Provided however that any modifications or annulment shall not affect the
validity of anything already done and acted upon under such rules and notifications."

Rule of construction

5. In the said Act, any reference to the State Government shall be construed as a
reference to the Administrator.

______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.8 OF 1982

At present, there is no law in this Union territory of Puducherry to control and

regulate the functioning of organisations who under the guise of social welfare
institutions for women and children indulge in malpractices. Hence, in order to licence,
supervise and control the proper functioning of all such voluntary institutions and to
revoke the licences granted to such institutions which are found to resort to
malpractices at a subsequent stage, it is proposed to extend the Women’s and
Children’s Institutions (Licensing) Act, 1956 (105 of 1956), to fall in line with other parts
of the country.

The Bill seeks to achieve the above objects.

______
 237

THE ANGLO-FRENCH TEXTILES LIMITED (ACQUISITION AND TRANSFER OF

TEXTILE UNDERTAKING) ACT, 1986

(Act No.7 of 1986)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER – I
Preliminary
1. Short title and commencement
2. Definitions
CHAPTER – II
Acquisition and Transfer of Anglo-French Textiles Limited

3. Acquisition of rights of company of Anglo-French Textiles Limited

4. General effect of vesting
5. Owner to be liable for certain prior liabilities
6. Contribution by Government

CHAPTER – III
PAYMENT OF AMOUNT

7. Payment of amount to owner of textile undertaking

8. Management, etc, of the textile undertaking
9. Duty of persons in charge of management of textile undertaking to deliver all assets,
etc.
10. Accounts
CHAPTER-IV
Provisions relating to employees of textile undertaking

11. Employment of certain employees

CHAPTER – V
Commissioner of Payments

12. Appointment of Commissioner of Payments

13. Payment by the Government to the Commissioner
14. Certain powers of the Corporation
15. Claims to be made to the Commissioner
16. Priority of claims
17. Examination of claims
 238

18. Admission or rejection of claims

19. Disbursement of money by the Commissioner to claimants
20. Disbursement of amounts to the owner of the textile undertaking
21. Undisturbed or unclaimed amount to be deposited to the general revenue account

CHAPTER – VI
Miscellaneous

22. Assumption of liabilities

23. Act to override all other enactments
24. Contracts to cease to have effect unless ratified by Corporation
25. Penalties
26. Offences by companies
27. Protection of action taken in good faith
28. Company not to be wound up by the court
29. Delegation of powers
30. Power to make rules
31. Power to remove difficulties
32. Declaration as to the policy of the State
33. Repeal and saving

SCHEDULE I
SCHEDULE II

_____
 239

THE ANGLO-FRENCH TEXTILES LIMITED (ACQUISITION AND TRANSFER OF

TEXTILE UNDERTAKING) ACT, 1986

(Act No.7 of 1986)

(2-5-1986)
AN
ACT

to provide for the acquisition and transfer of the right, title and interest of the
Anglo-French Textiles Limited for the purpose of ensuring continued and increased
production of goods essential to the needs of the community and for matters connected
therewith or incidental thereto.

WHEREAS the Anglo-French Textiles Limited, Puducherry remained closed

from the first week of July, 1983;

AND WHEREAS various attempts and efforts made by the Puducherry

Administration and the Government of India (Ministry of Textiles) in collaboration with
the Financial Institutions like Industrial Development Bank of India, United
Commercial Bank, etc. to reopen the mills through the existing management or by
inducting a new management could not succeed;

AND WHEREAS certain banks had advanced large sums of money to the
company owning the said undertaking with a view to making the said undertaking
viable and were unwilling to make any further advances;

AND WHEREAS further investment of very large sums of money is necessary

for reorganising and rehabilitating the said undertaking and thereby to protect the
interests of the workmen employed therein and to augment the production of cloth and
yarn so as to sub-serve the interests of general public;

AND WHEREAS acquisition by the Government of the said undertaking is

necessary in the interest of labour force, maintenance of production, ensuring credit
line, and in the largest interest of the people of Puducherry;

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-seventh

Year of the Republic of India as follows: --
 240

CHAPTER – I
Preliminary
Short title and commencement

1. (1) This Act may be called the Anglo-French Textiles Limited (Acquisition and
Transfer of Textile Undertaking) Act, 1986.
(2) It shall be deemed to have come into force on the 24th day of December, 1985.

Definitions
2. In this Act, unless the context otherwise requires, --
(a) "appointed day" means the 24th day of December, 1985;
(b) "Bank" means ---

(i) the State Bank of India constituted under the State Bank of India Act,
1955;
(ii) a subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959;
(iii) a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 and
a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980.
(iv) any other Bank, being a Scheduled Bank as defined in clause (e) of
section 2 of the Reserve Bank of India Act, 1934;

(c) "Commissioner" means a Commissioner of payments appointed under

section 12;
(d) "Company" means the Anglo-French Textiles Limited, being a company as
defined in the Companies Act, 1956 and having its registered office at Puducherry;
(e) "Corporation" means the Puducherry Textile Corporation Limited, formed
and registered under the Companies Act, 1956;
(f) "Government" means the Government of Puducherry;
(g) "notification" means a notification published in the Official Gazette;
(h) "Owner" when used in relation to Anglo-French Textiles Limited, means
any person or firm who or which is immediately before the appointed day, the
immediate proprietor or lessee or occupier of the said textile undertaking or any part
thereof, and also includes any agent or manager of such owner;
(i) "prescribed" means prescribed by rules made under this Act;
(j) "specified date" means such date as the Government may for the purpose of
any provision of this Act, by notification, specify; and different dates may be specified
for different provisions of this Act;
(k) "textile undertaking" means the undertaking of the company;
(l) words and expressions used herein and not defined but defined in the
Companies Act, 1956, shall have the meanings respectively assigned to them in that Act.
 241

CHAPTER – II

Acquisition and Transfer of Anglo-French Textiles Limited

Acquisition of rights of company of Anglo-French Textiles Limited

3. (1) On the appointed day, the Anglo-French Textiles Limited and the right, title
and interest of the owner in relation to that textile undertaking shall stand transferred
to, and shall vest absolutely in the Government.
(2) The textile undertaking which stands vested in the Government by virtue of
sub-section (1) shall, immediately after it has so vested, stand transferred to, and vest in
the Corporation.
General effect of vesting

4. (1) The textile undertaking referred to in section 3 shall be deemed to include all
assets, rights, leaseholds, powers, authorities and privileges and all property, movable
and immovable, including lands, buildings, workshops, stores, instruments, machinery
and equipment, cash balances, cash on hand, reserve funds, investments and book debts
and all other rights and interests in, or arising out of, such property as were
immediately before the appointed day in the ownership, possession, power or control
of the owner of the textile undertaking, whether within or outside India, and all books
of account, registers and all other documents of whatever nature relating thereto.

(2) All property as aforesaid which has vested in the Government under
sub-section (1) of section 3 shall, by force of such vesting, be freed and discharged from
any trust, obligation, mortgage, charge, lien and all other encumbrances affecting it, and
any attachment, injunction or decree or order of any court restricting the use of such
property in any manner shall be deemed to have been withdrawn.

(3) Where any licence or other instrument in relation to the textile undertaking
had been granted at any time before the appointed day to an owner by the Central
Government or the Government or any other authority, the Corporation shall, on and
from such date, be deemed to be substituted in such licence or other instrument in place
of the owner referred to therein as if such licence or other instrument had been granted
to the Corporation and it shall hold such licence or such other instrument for the
remainder of the period for which the owner would have held such licence or such
other instrument.

(4) Every mortgagee of any property which has vested under this Act in the
Government and every person holding any charge, lien or other interest in or in relation
to any such property, shall give, within such time and in such manner as may be
prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other
interest.
 242

(5) For the removal of doubt, it is hereby declared that the mortgagee of any
property referred to in sub-section (2) or any other person holding any charge, lien or
other interest in, or in relation to, any such property shall be entitled to claim, in
accordance with his rights and interests, payment of the mortgage money or other dues,
in whole or in part, out of the amount specified in relation to such property in section 7,
but no such mortgage, charge, lien or other interest shall be enforceable against any
property which has vested in the Government.

Owner to be liable for certain prior liabilities

5. (1) Every liability of the owner of the textile undertaking in respect of any period
prior to the appointed day, shall be the liability of such owner and shall be enforceable
against him and not against the Government or the Corporation.
(2) For the removal of doubt, it is hereby declared that--

(a) save as otherwise expressly provided in this section or in any other section
of this act, no liability in relation to the textile undertaking, in respect of any period
prior to the appointed day, shall be enforceable against the Government or the
Corporation;
(b) no liability of the textile undertaking or any owner thereof for the
contravention, before the appointed day, of any provision of law for the time being in
force, shall be enforceable against the Government or the Corporation.

Contribution by Government

6. An amount equal to the value of the assets of the textile undertaking transferred
to and vested in the Corporation under sub-section (2) of section 3, shall be deemed to
be the contribution made by the Government to the Corporation.

CHAPTER – III

PAYMENT OF AMOUNT

Payment of amount to owner of textile undertaking

7. (1) The owner of the textile undertaking shall be given by the Government, in cash
and in the manner specified in Chapter-V, for the transfer to, and vesting in the
Government under sub-section (1) of section 3 of the textile undertaking and the right,
tile and interest of owner in relation to such textile undertaking, an amount equal to the
amount specified against it in column (4) of the First Schedule.
 243

(2) In addition to the amount referred to in sub-section (1), there shall be given by
the Government, in cash, to the owner of the textile undertaking, simple interest at the
rate of four per cent per annum on the amount specified against such owner in column
(4) of the First Schedule for the period commencing on the appointed day, and ending
on the date on which the payment of such amount is made by the Government to the
Commissioner.

(3) The amount representing interest calculated at the rate specified in sub-section
(2) shall be given in addition to the amount specified in the First Schedule.

(4) Where any liability of the owner specified in the Second Schedule is
discharged by the Government or the Corporation according to the order of the
priorities mentioned in the Second Schedule, the amount to be paid to the owner under
sub-section (1) shall stand reduced to that extent.

Management, etc, of the textile undertaking

8. (1) The Corporation or any person which the Corporation may, by order in
writing, specify, shall be entitled to exercise the powers of general superintendence,
direction, control and management of the affairs and business of the textile
undertaking, the right, title and interest of an owner in relation to which have vested in
the Corporation under sub-section (2) of section 3, and to do all such things as the
owner of the textile undertaking is authorised to exercise and do.

(2) Notwithstanding anything contained in sub-section (1) or any other law for
time being in force, it shall be lawful for the Corporation to reorganise and reconstruct
the textile undertaking and thereby form such units as the Corporation deems fit.

Duty of persons in charge of management of textile

undertaking to deliver all assets, etc.

9. On the vesting of the management of the textile undertaking in the Corporation,

all persons in charge of the management of such textile undertaking immediately before
such vesting shall be bound to deliver to the Corporation all assets, books of account,
registers or other documents in their custody relating to the textile undertaking.

Accounts

10. The Corporation shall maintain the accounts of the textile undertaking in
accordance with the provisions of the Companies Act, 1956.
 244

CHAPTER-IV

Provisions relating to employees of textile undertaking

Employment of certain employees

11. (1) Where services of a person who is a workman within the meaning of the
Industrial Disputes Act, 1947, and who has been immediately before the appointed day,
employed in the textile undertaking, are in the opinion of the Corporation necessary
having regard to the requirements of the units of the Corporation formed as a result of
reorganization and reconstruction of the textile undertaking, he shall become, from the
date of his appointment by the Corporation, an employee of the Corporation and shall
hold office or service in the Corporation with the same rights and privileges as to
pension, gratuity and other matters as would have been admissible to him if the rights
in relation to such textile undertaking had not been transferred to, and vested in the
Corporation, and continue to do so unless an until his employment in such Corporation
is duly terminated or until his remuneration and terms and conditions of employment
are duly altered by the Corporation:

Provided that notwithstanding anything contained in the Payment of Wages

Act, 1936 (Central Act 4 of 1936) and the Payment of Gratuity Act, 1972 (Central Act 39
of 1972) –

(a) the Government or the Corporation shall not be liable to any person who
has become an employee of the Corporation under this sub-section for payment of any
gratuity or any arrears of wages for the period commencing from the day on which the
textile undertaking in which he was employed was closed and ending on the day on
which he becomes an employee of the Corporation, irrespective of whether such closure
was in accordance with the provisions of the Industrial Disputes Act, 1947 (Central Act
14 of 1947) or not,

(b) the termination of services of a person under sub-clause (ii) of clause (a) of
sub-section (3) on his becoming an employee of the Corporation under this sub-section,
shall not entitle such person to payment of any gratuity.

(2) Where services of a person who is not a workman within the meaning of the
Industrial Disputes Act, 1947 (Central Act 14 of 1947), and who has been, immediately
before the appointed day, employed in the textile undertaking, are in opinion of the
Corporation necessary having regard to the requirement of the units of the Corporation
formed as a result of reorganisation and reconstruction of the textile undertaking by the
Corporation, he shall become, from the date of his appointment by the Corporation, an
employee of the Corporation and shall hold office or service in the Corporation on such
terms and conditions of employment as may be determined by the Corporation.
 245

(3) (a) The services of every person employed by the owner before
the appointed day shall stand terminated –

(i) on the designated date if such person is not employed before that date
by the Corporation under sub-section (1) or (2); and
(ii) on the date of his appointment if such person is employed before the
designated date by the Corporation under sub-section (1) or (2).

(b) A person whose services stand terminated under sub-clause (i) of clause
(a) shall not be entitled to claim employment in the Corporation as of right.

(4)(a) Every person whose services stand terminated under sub-

clause (i) of clause (a) of sub-section (3) shall be entitled to –

(i) payment of gratuity as per the provisions of the Payment of Gratuity

Act, 1972 and compensation for retrenchment or closure, as the case
may be, if he is a workman within the meaning of the Industrial
Disputes Act, 1947 in accordance with the provisions of that Act; and
(ii) payment of gratuity if he is not such workman:

Provided that no person whose services are terminated on his superannuation

on or before the designated date, shall be entitled to payment of compensation for
retrenchment.

(b) Notwithstanding that the liability for payment of gratuity and

compensation for retrenchment under clause (a) is that of the owner, such liability shall
be discharged by the Government or the Corporation, according to the order of
priorities mentioned in the Second Schedule and on discharge of such liability by the
Government or the Corporation, the owner shall stand discharged to the extent of the
liability so discharged.

(5) Where ---

(a) the services of any person employed before the appointed

day in the textile undertaking are terminated ---

(i) under the terms of any contract or service or otherwise, or

(ii) under sub-section (3), and

(b) such person is entitled to any arrears of salary or wages or any payment for
any leave not availed of or other payment not being payment by way of gratuity or
compensation for retrenchment,
 246

such person may, except to the extent such liability of payment has been discharged by
the Government or the Corporation under sub-section (4) of section 7, enforce his claim
against the owner of the textile undertaking but not against the Government or the
Corporation.

Explanation.- In this section, the expression "designated date" means such date as
the Government may, in relation to the textile undertaking by notification designate.

CHAPTER – V

Commissioner of Payments

Appointment of Commissioner of Payments

12. (1) For the purpose of disbursing the amounts payable to the owner of textile
undertaking, the Government shall, by notification in the Official Gazette, appoint such
person as it may think fit to be the Commissioner of Payments.

(2) The Government may appoint such other persons as it may think fit to assist
the Commissioner and thereupon the Commissioner may authorise one or more of such
persons to also exercise all or any of the powers exercisable by him under this Act, and
different persons may be authorised to exercise different powers.

(3) Any person authorised by the Commissioner to exercise any powers may
exercise those powers in the same manner and with the same effect as if they have been
conferred on that person directly by this Act and not by way of authorisation.

(4) The salaries and allowances of the Commissioner and other persons appointed
under this section shall be defrayed out of the Consolidated Fund of the Union territory
of Puducherry.
Payment by the Government to the Commissioner

13. (1) The Government shall, within ninety days from the specified date, pay in cash
to the Commissioner, for payment to the owner of the textile undertaking, an amount
equal to the amount specified against the textile undertaking in the First Schedule and
shall also pay to the Commissioner such sums as may be due to the owner of the textile
undertaking under sub-section (2) of section 7.

(2) A personal deposit account in the State Bank of India shall be opened in
favour of the Commissioner and every amount paid under this Act to the
Commissioner shall be deposited by him to the credit of the said deposit account and
thereafter the said deposit account shall be operated by the Commissioner.
 247

(3) Separate records shall be maintained by the Commissioner in respect of the

textile undertaking in relation to which payments have been made to him under this
Act.
(4) Interest accruing on the amounts standing to the credit of the deposit account
referred to in sub-section (2) shall accrue to the benefit of the owner of the textile
undertaking.
Certain powers of the Corporation

14. (1) The Corporation shall be entitled to receive upto the specified date, to the
exclusion of all other persons, any money due to the textile undertaking, realised after
the appointed day, notwithstanding that the realisation pertain to a period prior to the
appointed day.
(2) Save as otherwise provided in this Act, the liabilities in relation to the textile
undertaking in respect of any period prior to the appointed day shall be the liabilities of
the owner of the textile undertaking.

Claims to be made to the Commissioner

15. Every person having a claim against the owner of the textile undertaking shall
prefer such claim before the Commissioner within thirty days from the specified date:

Provided that if the Commissioner is satisfied that the claimant was prevented
by sufficient cause from preferring the claim within the said period of thirty days, he
may entertain the claim within a further period of thirty days but not thereafter.

Priority of claims

16. The claims arising out of the matters specified in the Second Schedule shall have
priorities in accordance with the following principles, namely: --

(a) Category-I shall have precedence over all other categories and Category-II
shall have precedence over Category-III;

(b) the claim specified in each category except Category-II shall rank equally
and be paid in full but if the amount is insufficient to meet such claims in full, they shall
abate in equal proportions and be paid accordingly;

(c) the liabilities specified in Category-II shall be discharged subject to the

priorities specified in this section, in accordance with the terms of the secured loans and
the priority, inter se, of such loans; and
 248

(d) the question of payment of a liability with regard to a matter specified in a

lower category shall arise only if a surplus is left after meeting all the liabilities specified
in the immediately higher category.

Examination of claims

17. (1) On receipt of the claims under section 15, the Commissioner shall arrange the
claims in the order of priority specified in the Second Schedule and examine the same in
accordance with the said order.

(2) If, on examination of the claims, the Commissioner is of the opinion that the
amount paid to him under this Act is not sufficient to meet the liabilities specified in
any lower category, he shall not be required to examine the liabilities in respect of such
lower category.
Admission or rejection of claims

18. (1) After examining the claims with reference to the priority set out in the Second
Schedule, the Commissioner shall fix a certain date on or before which every claimant
shall file the proof of his claim or be excluded from the benefit of the disbursement
made by the Commissioner.

(2) Not less than fourteen days’ notice of the date so fixed shall be given by
advertisement in one issue of the daily newspaper in the English language and one
issue of the daily newspaper in the regional language as the Commissioner may
consider suitable, and every such notice shall call upon the claimant to file the proof of
his claim with the Commissioner within the time specified in the advertisement.

(3) Every claimant who fails to file the proof of his claim within the time
specified by the Commissioner shall be excluded from the disbursement made by the
Commissioner.

(4) The Commissioner shall, after such investigation as may, in his opinion, be
necessary and after giving the owner of the textile undertaking an opportunity of
refuting the claim and after giving the claimants a reasonable opportunity of being
heard, in writing, admit or reject the claim in whole or in part.

(5) The Commissioner shall have the power to regulate his own procedure in all
matters arising out of the discharge of his functions including the place or places at
which he may hold his sittings and shall, for the purpose of making any investigation
under the Act have the same powers as are vested in a Civil Court under the Code of
Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely: --
 249

(a) the summoning and enforcing the attendance of any witness and examining
him on oath;
(b) the discovery and production of any document or other material object
produceable as evidence;
(c) the reception of evidence on affidavits; and
(d) the issuing of any commission for the examination of witnesses.

(6) An investigation before the Commissioner shall be deemed to be a judicial

proceeding within the meaning of sections 193 and 228 of the Indian Penal Code and
the Commissioner shall be deemed to be a Civil Court for the purposes of section 195
and Chapter-XXVI of the Code of Criminal Procedure, 1973.

(7) A claimant who is dissatisfied with the decision of the Commissioner may
prefer an appeal against the decision to the Principal Civil Court of original jurisdiction
within the local limits of whose jurisdiction the textile undertaking is situated:

Provided that where a person who is a Judge of the High Court is appointed to
be the Commissioner, such appeal shall lie to the High Court and it shall be heard and
disposed of by not less than two other Judges of the High Court.

Disbursement of money by the Commissioner to claimants

19. After admitting a claim under this Act, the amount due in respect of such claim
shall be credited by the Commissioner to the relevant fund or be paid to the person or
persons to whom such sums are due and on such credit or payment the liability of the
owner in respect of such claims shall stand discharged.

Disbursement of amounts to the owner of the textile undertaking

20. (1) If out of the monies paid to him in relation to the textile undertaking, there is a
balance left after meeting the liabilities as specified in the Second Schedule, the
Commissioner shall disburse such balance to the owner of such textile undertaking.

(2) Before making any payment to the owner of the textile undertaking under
sub-section (1), the Commissioner shall satisfy himself as to the right of such person to
receive the whole or any part of such amount, and in the event of there being a doubt or
dispute as to the right of the persons to receive the whole or any part of the amount
referred to in section 7, the Commissioner shall refer the matter to the Court, and make
the disbursement in accordance with the decision of the Court.

(3) For the removal of doubt, it is hereby declared that the entry in column (3) of
the First Schedule shall not be deemed to be conclusive as to the right, title and interest
of any person in relation to the textile undertaking specified in the corresponding entry
 250

in column (2) of the said Schedule and evidence shall be admissible to establish the
right, title and interest of any person in relation to such textile undertaking.

(4) Where any machinery, equipment or other property in the textile undertaking
has vested in the Corporation, but such machinery, equipment or other property does
not belong to the owner of the textile undertaking, the amount specified in column (4)
of the First Schedule against the textile undertaking shall, on a reference made to the
Court by the Commissioner, be apportioned by the Court between the owner of the
textile undertaking and the owner of such machinery, equipment or other property
having due regard to the value of such machinery, equipment or other property on the
appointed day.

Explanation. – In this section, "Court" in relation to the textile undertaking

means, the Principal Civil Court of original jurisdiction within the local limits of whose
jurisdiction the textile undertaking is situated.

Undisbursed or unclaimed amount to be deposited

to the general revenue account

21. Any money paid to the Commissioner which remains undisbursed or unclaimed
for a period of three years from the last day on which the disbursement was made, shall
be transferred by the Commissioner to the general revenue account of the Government,
but a claim to any money so transferred may be preferred to the Government by the
person entitled to such payment and shall be dealt with as if such transfer has not been
made, the order, if any, for payment of the claim being treated as an order for the
refund of revenue.
CHAPTER – VI

Miscellaneous

Assumption of liabilities

22. (1) Where any liability of the owner of the textile undertaking arising out of any
item specified in Category I of the Second Schedule is not discharged fully by the
Commissioner out of the amount paid under this Act, the Commissioner shall intimate
in writing to the Government the extent of the liability which remains undischarged
and that liability shall be assumed by the Government.

(2) The Government, may, by order, direct the Corporation to take over any
liability assumed by the Government under sub-section (1) and on receipt of such
direction, it shall be the duty of the Corporation to discharge such liability.
 251

Act to override all other enactments

23. The provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in force or in any
instrument having effect by virtue of any law other than this Act or in any decree or
order of any court, tribunal or authority.

Contracts to cease to have effect unless ratified by Corporation

24. (1) Every contract entered into by the owner or occupier of the textile undertaking
for any service, sale or supply and in force immediately before the appointed day shall,
on and from the expiry of one hundred and eighty days from the appointed day cease
to have effect unless such contract is, before the expiry of that period, ratified, in writing
by the Corporation and in ratifying such contract the Corporation may, with the
previous approval of the Government, make such alterations or modifications therein as
it may think fit:

Provided that the Corporation shall not omit to ratify a contract, and shall not
make any alteration or modification in a contract unless it is satisfied that such contract
is unduly onerous or has been entered into in bad faith or is detrimental to the interest
of the textile undertaking.

(2) The Corporation shall not omit to ratify a contract, and shall not make any
alteration or modification therein, except after giving to the parties to the contract a
reasonable opportunity of being heard and except after recording in writing its reasons
for refusal to ratify the contract or for making any alteration or modification therein.

Penalties
25. Any person who, --
(a) having in his possession, custody, or control any property forming part of
the textile undertaking, wrongfully withholds such property from the Government or
the Corporation, or any person authorised by the Government or the Corporation, as
the case may be, in this behalf, or

(b) wrongfully obtains possession of, or retains, any property forming part of
the textile undertaking or wilfully withholds or fails to furnish to the Government, the
Corporation or any person specified by the Government or the Corporation, as the case
may be, any document relating to such textile undertaking, which may be in his
possession, custody or control or fails to deliver to the Corporation or any person
specified by the Corporation, any assets, books of accounts, registers or other
documents in his custody relating to the textile undertaking, or
 252

(c) wrongfully removes or destroys any property forming part of the textile
undertaking or prefers any claim under this Act which he knows or has reasonable
cause to believe to be false or grossly inaccurate, shall be punishable with imprisonment
for a term which may extend to two years, or with fine which may extend to ten
thousand rupees, or with both.
Offences by companies

26. (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 he had exercised all due diligence to prevent the commission of such
offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence

under this Act has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or is attributable to any neglect on
the part of any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.

Explanation. --- For the purpose of this section, ---

(a) "company" means any body corporate and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.

Protection of action taken in good faith

27. No suit, prosecution or other legal proceeding shall lie against the Government
or any officer of the Government or the Corporation or any officer or other person
authorised by the Corporation for anything which is, in good faith done or intended to
be done under this Act.
Company not to be wound up by the court

28. No proceeding for the winding up of the company, the right, title and interest in
relation to the textile undertaking owned by which have vested in the Corporation
under this Act or, for the appointment of a receiver in respect of the business of the
textile undertaking shall lie or be proceeded within any court except with the consent of
the Government.
 253

Delegation of powers

29. (1) The Government may, by notification, direct that all or any of the powers
exercisable by it under this Act, other than the power under section 30, may also be
exercised by any person or persons as may be specified in the notification.
(2) Whenever any delegation of power is made under sub-section (1), the person
to whom such power has been delegated shall act under the direction, control and
supervision of the Government.
Power to make rules

30. (1) The Government may, by notification, make rules to carry 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 time within which and the manner in which an intimation referred to in
sub-section (4) of section 4, shall be given;
(b) any other matter which is required to be, or may be prescribed.

(3) The power to make rules conferred by this section shall be subject to the
condition of the rules being made after previous publication.
(4) All rules made under this section shall be laid for not less than thirty days
before the Legislative Assembly of Puducherry as soon as possible after they are made
and be subject to rescission by the Legislative Assembly or to such modification as the
Legislative Assembly may make during the session in which they are so laid or the
session immediately following.

Power to remove difficulties

31. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order, not inconsistent with the provisions of this Act, remove the
difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the appointed day.

Declaration as to the policy of the State

32. It is hereby declared that this Act is for giving effect to the policy of the State
towards securing the principles specified in clause (b) of article 39 of the Constitution.

Explanation. – In this section, "the state" has the same meaning as in article 12
of the Constitution.
 254

Repeal and saving

33.(1) The Anglo-French Textiles Limited (Acquisition and Transfer of Textile

Undertaking) Ordinance, 1985, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the
said Ordinance shall be deemed to have been done or taken under the corresponding
provisions of this Act.
THE FIRST SCHEDULE

[See sections 7 and 13]

Sl. Name of the Name of the Amount

No. Undertaking owner
(1) (2) (3) (4)

1. Anglo-French Anglo-French 7,65,00,000

Textiles Limited, Textiles Limited,
Puducherry. Puducherry.

THE SECOND SCHEDULE

[See sections 7(a), 11(a) (b), 16, 17, 18 and 20]

Order of priorities for the discharge of liabilities in

respect of the textile undertaking

CATEGORY—I

(i) All dues including gratuity of persons employed in the textile

undertaking;
(ii) Arrears relating to contributions towards Provident Fund and
contributions under the Employees’ State Insurance Act, 1948,
payable by the owner;
(iii) Arrears of excise duty, sales-tax, dues relating to electricity and dues
of a Local Authority.

CATEGORY—II
Secured creditors including banks and institutions.

CATEGORY—III
(i) Sundry Creditors;
(ii) Other liabilities.
______
 255

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.7 OF 1986

The Anglo-French Textile Limited, Puducherry had remained closed from the
first week of July, 1983. Various attempts and efforts made by the Puducherry
Administration and the Government of India (Ministry of Textiles) in collaboration with
the Financial Institutions like Industrial Development Bank of India, United
Commercial Bank, etc., to reopen the Mills through the existing management or by
inducting new management could not succeed. Also certain Banks who had advanced
large sums of money to the Company owning the mills with a view to making the mills
viable were unwilling to make any further advances. Further investments of very large
sum of money was necessary for reorganizing and rehabilitating the said mills and
thereby to protect the interest of the workmen employed therein and to augment the
production of cloth yarn ensuring credit line and in the largest interest of the people of
Puducherry. It was therefore decided to acquire and transfer the right, title and interest
of the Anglo-French Textiles Limited by the Government of Puducherry.

In order to achieve the above objects and in order to give effect to the policy of
the State towards securing the principles specified in clause (b) of article 39 of the
Constitution, the Anglo-French Textile Limited (Acquisition and Transfer of Textile
Undertaking) Ordinance, 1985 was promulgated by the Administrator, Puducherry on
the 24th December, 1985 under article 239 B of the Constitution.

The said Ordinance, apart from providing for the acquisition and transfer of the
textile undertaking of the Company, provided for the payment of an amount for such
acquisition, appointment of a Commissioner of payments for the purpose of disbursing
the amounts payable to the Company, and for other incidental and consequential
matters.

This Bill seeks to replace the aforesaid ordinance.

______
 256

THE SLUM AREAS (IMPROVEMENT AND CLEARANCE) (PUDUCHERRY

AMENDMENT) ACT, 1986

(No. 10 of 1986)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title extent and commencement.

2. Amendment of section 2.
3. Amendment of section 3.
4. Power of competent authority to require execution of works of improvement to slum
areas.
5. Enforcement of notice requiring execution of works of improvement.
6. Expenses of maintenance of works of improvement etc., to be recoverable from the
occupiers of buildings.
7. Insertion of new Chapter VI-A.
- Establishment of Slum Clearance Board.
- Constitution of the Board.
- Condition of service of members.
- Appointment of officers and servants.
- Conditions of service of officers and servants.
- General disqualification of members, officers and servants.
- Function of the Board.
- Finance, accounts and audit.
- No disqualification in certain cases.
- Power of Board to make regulations.
- Board to comply with directions of Administrator.
- Power of the Puducherry Housing Board to cease.
- Transfer of certain assets and liabilities to the Board.

8. Insertion of new section 39A.

- Application of the Act to certain pending cases of acquisition.

______
 257

THE SLUM AREAS (IMPROVEMENT AND CLEARANCE) (PUDUCHERRY

AMENDMENT) ACT, 1986

(No. 10 of 1986)
(24—8—1986)
AN
Act

to amend the Slum Areas (Improvement and Clearance) Act, 1956 (Central Act
XCVI of 1956).

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-seventh

Year of the Republic of India, as follows:-

Short title extent and commencement.

1. (1) This Act may be called the Slum Areas (Improvement and Clearance)
(Puducherry Amendment) Act, 1986.
(2) It extends to the whole of the Union territory of Puducherry.
(3) It shall come into force on such date as the Administrator may, by
notification in the Official Gazette, appoint.

Amendment of section 2.

2. In the Slum Areas (Improvement and Clearance) Act, 1956 (Central Act XCVI
of 1956.) (hereinafter referred to as the principal Act), in section 2,-

(i) after clause (a), the following clause shall be inserted, namely:-
“(aa) ‘Board’ means the Puducherry Slum Clearance Board,
established under section 21A;”;

(ii) after clause (h), the following clause shall be inserted, namely:-
“(hh) ‘slum area’ means any area declared to be a slum area under
sub-section (1) of section 3 ;“;

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

“(i) ‘slum clearance area’ means any slum area declared to be a
slum clearance area under sub-section (1) of section 9 ;“.
 258

Amendment of section 3.

3. In the principal Act, for sub-section (1) of section 3, the following shall be
substituted, namely:-

“(1) Where the Administrator is satisfied that-

(a) any area is or may be a source of danger to the health, safety or
convenience of the public of that area or its neighbour-hood, by reason of the
area being low lying, insanitary, squalid, overcrowded or otherwise; or
(b) the buildings in any area, used or intended to be used for human
habitation are-
(i) in any respect, unfit for human habitation, or
(ii) by reason of dilapidation, over-crowding, faulty arrangement and
design of such buildings; narrowness or faulty arrangement of
streets, lack of ventilation, light or sanitation facilities, or any
combination of these factors detrimental to safety, health or morals,

he may, by notification, declare such area to be a slum area.”.

4. In the principal Act, for section 4, the following shall be substituted, namely:-

Power of competent authority to require execution of works of

improvement to slum areas.

“4. (1) Where the competent authority is satisfied that at a reasonable expense-

(a) any slum area or any part thereof is capable of being improved so as
not to be a source of danger to the health, safety or convenience of the
public of that area; or
(b) any building being unfit for human habitation in a slum area can be
rendered fit for human habitation,

it may serve upon the owner of the slum area or part thereof or of the building, as the
case may be, a notice requiring him within such time not being less than sixty days, as
may be specified in the notice, to execute the works of improvement specified therein:

Provided that where the owner of the building is different from the owner of the
land on which the building stands and the works of improvement required to be
executed relate to provision of water taps, bathing places, construction of drains, open
or covered, as the case may be, provision of water-borne latrines or removal of rubbish
and such works are to be executed outside the building, the notice shall be served upon
the owner of the land.
 259

(2) In addition to serving a notice under this section on the owner, the
competent authority may serve a copy of the notice on any other person having an
interest in the slum area or part thereof or the building or the land on which the
building stands whether as lessee, mortgagee or otherwise.

(3) In determining, for the purposes of this Act, whether at a reasonable

expense, the slum area or part thereof, can be improved or a building can be rendered
fit for human habitation, regard shall be had to the estimated cost of the works of
improvement of the slum area or part thereof or of the works necessary to render the
building fit for human habitation and the estimated value that the slum area or part
thereof or the building will have when the works are completed.”.

Substitution of new section for section 5.

5. In the principal Act, for section 5, following shall be substituted, namely:-

Enforcement of notice requiring execution of works of improvement.

“5. (1) If a notice under section 4 is not complied with, then, after the expiration
of the time specified in the notice, the competent authority may itself do the works
required to be done by the notice.

(2) All expenses incurred by the competent authority under this section,
together with interest, at such rate as the Central Government may by order fix from the
date when a demand for the expenses is made until payment, may be recovered by the
competent authority from the owner of the slam area or part thereof or of the building
or of the land on which the building stands, as the case may be, as arrears of land
revenue and all such expenses and interest shall constitute a charge upon the slum area
or part thereof or the building or the land on which the building stands, as the ease may
be:
Provided that if the owner proves that he-

(a) is receiving the rent merely as agent or trustee for some other person;
and
(b) has not in his hands on behalf of that other person sufficient money to
satisfy the whole demand of the authority,

his liability shall be limited to the total amount of the money which he has in his hands
as aforesaid.”.
Substitution of new section for section 6.

6. in the principal Act, for section 6, the following shall be substituted, namely:-
 260

Expenses of maintenance of works of improvement etc.,

to be recoverable from the occupiers of buildings.

“6. Where works of improvement have been executed in relation to any land or
building in a slum area in pursuance of the provisions of sections 4 and 5, the expenses
incurred by the competent authority or, as the case may be, by any local authority, in
connection with the maintenance of such works of improvement or the enjoyment of
amenities and conveniences rendered possible by such works shall be recoverable from
the occupier or occupiers of the land or building as arrears of land revenue.”.

Insertion of new Chapter VI-A.

7. In the principal Act, after Chapter VI, the following Chapter and section shall
be inserted, namely:-

“CHAPTER VI-A

SLUM CLEARANCE BOARD

Establishment of Slum Clearance Board.

21A. (1) With effect from such date as the Administrator may, by notification,
appoint in this behalf, there shall be established a Board by the name of the Puducherry
Slum Clearance Board.

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

Constitution of the Board.

21B. (1) The Board shall consist of the following members, namely:-

(a) a Chairman to he appointed by the Administrator;

(b) the Secretary to Government in-charge of slum clearance;
(c) the Secretary to Government, Finance Department;
(d) the District Collector;
(e) the Director of Public Works Department;
(f) the Director of Health and Family Welfare Services;
(g) the Senior Town Planner; and
(h) three non-official members to be appointed by the Administrator, one
of whom shall be an Engineer who possesses experience in slum clearance and
who is not in the employment of the Central or State or Union territory
Government or of a local authority or of any corporation owned or controlled by
 261

the Central or State or Union territory Government; and one shall be a resident of
any one of the outlying areas of Karaikal, Mahe or Yanam.

(2) The appointment of Chairman and non-official members shall be notified

in the Official Gazette.
(3) No act or proceeding of the Board shall be invalid by reason only of the
existence of any vacancy among its members or any defect in the appointment of a
member thereof.
Condition of service of members.

21C. The terms and conditions of the service of members of the Board shall be
such as may be prescribed.

Appointment of officers and servants.

21D. (1) The Secretary to the Board shall be appointed by the Administrator,

(2) The Secretary shall be the Chief Executive Officer of the Board.
(3) The Board may appoint such other officials and servants as it considers
necessary for the efficient performance of its functions.

Conditions of service of officers and servants.

21E. The pay and other conditions of service of the officers and servants of the
Board shall be such as may be prescribed.

General disqualification of members, officers and servants.

21F. No person who has directly or indirectly by himself or his partner or agent,
any share or interest in any contract by or on behalf of the Board, shall become or
remain a member or officer or servant of the Board.
Function of the Board.
21G. The functions of the Board shall be-
(a) to exercise the powers of the competent authority in cases where the
Government have, by notification, directed that the powers of the competent
authority shall he exercised by the Board;
(b) such other functions as may be prescribed.

Finance, accounts and audit.

21H. The provisions of Chapter IX of the Puducherry Housing Board Act, 1973
(Act No. 7 of 1974) relating to finance, accounts and audit shall apply, as far as may be,
to the Board as the said provisions apply to the Puducherry Housing Board.
 262

No disqualification in certain cases.

21I. No person shall be disqualified for being chosen as, or for being a member of
the Legislative Assembly by reason only of the fact that he is a Chairman or a member
of the Board.
Power of Board to make regulations.
21J. The Board may make regulation in regard to the meetings of the Board and
the conduct of business.
Board to comply with directions of Administrator.
21K. It shall be the duty of the Board to comply with such directions as the
Administrator may, from time to time issue either generally or in regard to any
particulars matter.
Power of the Puducherry Housing Board to cease.
21L. With effect from the date of the establishment of the Board, the Puducherry
Housing Board shall cease to exercise any function under the Puducherry Housing
Board Act, 1973 (Act No. 7 of 1974.) in respect of matters dealt with in this Act and in
particular, the improvement of the slum area, the clearance of a slum area and the
re-development of a slum clearance area.
Transfer of certain assets and liabilities to the Board.
21M. (1) All property, assets, rights and liabilities of the Government or any
other authority shall, in so far as such property, assets, rights and liabilities are relatable
immediately before the date of establishment of the Board to the improvement of the
slum area, the clearance of the slum area and the re-development of the slum clearance
area, stand transferred to and vested in the Board.
(2) All contracts, agreements and other instruments of whatever nature
subsisting or having effect immediately before the date of the establishment of the
Board and to which the Government or such other authority is a party, in so far as such
contracts, agreements and instruments are relatable to the improvement of the slum
area, the clearance of a slum area and the re-development of a slum clearance area shall
be of full force and effect against or in favour of the Board and may be enforced or acted
upon as fully and effectually as if, instead of the Government or such other authority,
the Board had been a party thereto or as if they had been entered into a issued in favour
of the Board.
(3) If, on the date of establishment of the Board, any suit, appeal or other legal
proceeding of whatever nature by or against the Government or such other authority is
pending, then such suit, appeal or other legal proceeding in so far it is relatable to the
improvement of the slum area, the clearance of a slum area and the re-development of a
slum clearance area, shall not abate, be discontinued or be in any way prejudicially
affected by reason of the transfer to the Board of the property, assets, rights and
liabilities of the Government or such other authority or of anything done under this Act,
but the suit, appeal or other proceeding may be continued, prosecuted and enforced by
or against the Board.
 263

Explanation.- For the purposed of this sub-section, “legal proceeding” includes

any proceeding under the Land Acquisition Act, 1894 (Central Act I of 1894).”.
Insertion of new section 39A.
8. In the principal Act, after section 39, the following section shall be inserted,
namely:-
Application of the Act to certain pending cases of acquisition.
“39A. The provisions of this Act as amended by the Slum Area (Improvement
and Clearance) (Puducherry Amendment) Act, 1986 shall apply to any case or cases in
which proceeding have been started before the commencement of this Act for the
acquisition of any land in a slum area under the Land Acquisition Act, 1894 (Central
Act I of 1894) (hereinafter in this section referred to as the said Act), but no award has
been made by the Collector under section 11 of the said Act before such
commencement, as if-
(i) the notification published under sub-section (1) of section 4 of the said
Act, or
(ii) the declaration made under section 6 of the said Act, or
(iii) the notice given under sub-section (1) of section 9 of the said Act,
were a notice to show cause against the acquisition of the land served by the
Government under section 12 of this Act.”.

______

STATEMENT OF OBJECTS AND REASONS ACT NO. 4 OF 1986

In the Union territory of Puducherry, 36 per cent of the total population are slum
dwellers. With the rapid urbanisation in this territory, there is proliferation of slum
areas. Unless the mushroom growth of slums is arrested, and the slum dwellers
rehabilitated, there will be hazards to public health and hygiene. At present, the slum
clearance schemes are implemented by the Government and to certain extent by the
Puducherry Housing Board. With a view to take concerted efforts to remove congestion
and insanitary and unhygienic conditions prevailing in this territory and also to make
improvements to slum areas, a unified agency for the purpose is a long felt need in this
territory.
The Slum Areas (Improvement and Clearance) Act, 1956 (Central Act XCVI of
1956) is in force in this Union territory on and from the 18th December, 1968. The Act
however serves only a limited purpose for making improvement only to buildings and
the surrounding areas. The Act also does not provide for creation of an agency with
corporate personality to take up steps for clearance and improvement to slum areas.
The said Act therefore requires to be amended to widen its scope for the above
purposes and also to provide for the constitution of a Slum Clearance Board and
matters incidental thereto.
This Bill seeks to achieve the above objects.
______
 264

THE PUDUCHERRY APARTMENT OWNERSHIP ACT, 1987

(No. 8 of 1987)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Application of the Act
3. Definitions
4. Status of apartments
5. Ownership of apartments
6. Common areas and facilities
7. Compliance with covenants, bye-laws and administrative provisions
8. Certain works prohibited
9. Encumbrances against apartments, removal from encumbrances, effect of part
payment etc.
10. Common profits and expenses
11. Contents of Declaration
12. Contents of Deeds of Apartments
13. Declaration Deeds of Apartments and copies of floor plans to be registered
14. Removal from provisions of this Act
15. Removal no bar to subsequent submission of property to this Act
16. Bye-laws and their contents
17. Waiver of use of common areas and facilities, abandonment of apartment
18. Separate assessment
19. Charge on property for common expenses
20. Joint and several liability of vendor, etc.
21. Insurance
22. Disposition of property, destruction and damage
23. Action
24. Act to be binding on apartment owners, tenants, etc.
25. Power to make rules
26. Removal of doubt
27. Severability

______
 265

THE PUDUCHERRY APARTMENT OWNERSHIP ACT, 1987

(No. 8 of 1987)
(28-7-1987)
AN
ACT

to provide for the ownership of an individual apartment in a building and to

make such apartment heritable and transferable property and for matters connected
therewith.
BE it enacted by the Legislative Assembly of Puducherry in the Thirty-eighth
Year of the Republic of India as follows: --

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Apartment Ownership Act, 1987.
(2) It extends to the whole of the Union territory of Puducherry.
(3) It shall come into force on such date as the Government may, by notification
in the Official Gazette, appoint.
Application of the Act

2. This Act applies only to property, the sole owner or all the owners of which
submit it to the provisions of this Act by duly executing and registering a Declaration as
hereinafter provided:
Provided that no property, shall be submitted to the provisions of this Act,
unless it is mainly used or proposed to be used for residential purposes.

Definitions

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

(a) "apartment" means a part of any property, intended for any type of
independent use, including one or more rooms or enclosed spaces located on one or
more floors or part of parts thereof, in a building, intended to be used for residential
purposes and with a direct exit to a public street, road or highway or to a common area
leading to such street, road or highway;
(b) "apartment owner" means the person or persons owning an apartment and
an undivided interest in the common areas and facilities in the percentage specified and
established in the Declaration;
(c) "apartment number" means the number, letter, figure or combination
thereof, designating the apartment in the Declaration;
(d) "Association of Apartment Owners" means all the apartment owners acting
as a group in accordance with the bye-laws and Declaration;
 266

(e) "building" means a building containing four or more apartments, or two or

more buildings, each containing two or more apartments, with a total of four or more
apartments for all such buildings, and comprising a part of the property;
(f) "common areas and facilities", unless otherwise provided in the Declaration
or lawful amendments thereto, includes ---

(1) the land on which the building is located;

(2) the foundations, columns, girders, beams, supports, main walls, roofs,
halls, corridors, lobbies, stairs, stairways, fire-escapes, entrances and exits of the
building;
(3) the basements, cellars, yards, gardens, parking areas and storage
spaces;
(4) the premises for the lodging of janitors or persons employed for the
management of the property;
(5) installations of central services, such as power, light, gas, hot and cold
water, heating, refrigeration, air-conditioning and incinerating;
(6) the elevators, tanks, pumps, motors, fans, compressors, ducts and in
general all apparatus and installations existing for common use;
(7) such community and commercial facilities as may be provided for in
the Declaration; and
(8) all other parts of the property necessary or convenient to its existence,
maintenance and safety, or normally in common use;

(g) "common expenses" includes, --

(1) all sums lawfully assessed against the apartment owners by the
Association of Apartment Owners;
(2) expenses of administration, maintenance, repair or replacement of the
common areas and facilities;
(3) expenses agreed upon as common expenses by the bye-laws;
(4) expenses declared as common expenses by the provisions of this Act or
by the Declaration or the bye-laws;

(h) "common profits" means the balance of all income, rents, profits and
revenues from the common areas and facilities remaining after the deduction of the
common expenses;
(i) "competent authority" means the relation to buildings constructed or to be
constructed by the Housing Board, the Secretary of the Housing Board and in any other
case, the Registrar of Co-operative Societies as defined in the Puducherry Co-operative
Societies Act, 1972 (Act No. 7 of 1973.);
(j) "Declaration" means the instrument by which the property is submitted to
the provisions of this Act, as hereinafter provided, and such Declaration as from time to
time may be lawfully amended;
 267

(k) "Government" means the Administrator of the Union territory of

Puducherry appointed under article 239 of the Constitution;
(l) "Housing Board" means the Housing Board constituted under the
Puducherry Housing Board Act, 1973 (Act No. 7 of 1974).
(m) "joint family" means an undivided Hindu family, and in the case of other
persons, a group or unit, the members of which are by custom joint in possession of
residence;
(n) "limited common areas and facilities" means those common areas and
facilities designated in the Declaration as reserved for use of certain apartment or
apartments to the exclusion of the other apartments;
(o) "majority" or "majority of apartment owners" means the apartment owners
with fifty-one per cent or more of the votes in accordance with the percentages assigned
in the Declaration to the apartments for voting purposes;
(p) "person" includes a joint family;
(q) "prescribed" means prescribed by rules made under this Act;
(r) "property" means the land, the building, all improvements and structures
appurtenant thereto, owned in freehold or held on lease or as occupant under any law
relating to land revenue and all easements, rights and appurtenances belonging thereto,
and all articles of personal property intended for use in connection therewith, which
have been or are intended to be submitted to the provisions of this Act.

Status of apartments

4. Each apartment, together with its undivided interest in the common areas and
facilities, appurtenant to such apartment, shall for all purposes constitute heritable and
transferable immovable property within the meaning of any law for the time being in
force in the territory, and accordingly, an apartment owner may transfer his apartment
and the percentage of undivided interest in the common areas and facilities
appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any
other manner whatsoever in the same manner, to the same extent and subject to the
same rights, privileges, obligations, liabilities, legal proceedings and remedies as any
other immovable property, or make a bequest of it under the laws applicable to the
transfer and succession of immovable property.

Ownership of apartments

5. (1) Each apartment owner shall be entitled to the exclusive ownership and
possession of his apartment.
(2) Each apartment owner shall execute a Declaration that he submits his
apartment to the provisions of this Act and a Deed of Apartment in relation to his
apartment in the manner prescribed for the purpose.
 268

Common areas and facilities

6. (1) Each apartment owner shall be entitled to an undivided interest in the common
areas and facilities in the percentage expressed in the Declaration. Such percentage shall
be computed by taking as a basis the value of the apartment in relation to the value of
the property; and such percentage shall reflect limited common areas and facilities.
(2) The percentage of the undivided interest of each apartment owner in the
common areas and facilities as expressed in the Declaration shall have a permanent
character, and shall not be altered except with the consent of all the apartment owners
expressed in an amended Declaration duly executed and registered as provided in this
Act. The percentage of the undivided interest in the common areas and facilities shall
not be separated from the apartment to which it appertains, and shall be deemed to be
conveyed or encumbered with the apartment even though such interest is not expressly
mentioned in the conveyance or other instrument.
(3) The common areas and facilities shall remain undivided, and no apartment
owner or any other person shall bring any action for partition or division of any part
thereof, unless the property has been removed from the provisions of the Act as
provided in sections 14 and 22. Any covenant to the contrary shall be null and void.
(4) Each apartment owner may use the common areas and facilities in accordance
with the purpose for which they are intended without hindering or encroaching upon
the lawful rights of the other apartment owners.
(5) The necessary work of maintenance, repair and replacement of the common
areas and facilities and the making of any additions or improvements thereto shall be
carried out only as provided herein and in the bye-laws.
(6) The Association of Apartment Owners shall have the irrevocable right, to be
exercised by the Manager or Board of Managers, to have access to each apartment from
time to time during reasonable hours as may be necessary for the maintenance, repair
and replacement of any of the common areas and facilities therein or accessible
therefrom, or for making emergency repairs therein necessary to prevent damage to the
common areas and facilities or to another apartment or apartments.

Compliance with covenants, bye-laws and administrative provisions

7. Each apartment owner shall comply strictly with the bye-laws and with the
administrative rules and regulations adopted pursuant thereto, as any of them may be
lawfully amended from time to time, and with the covenants, conditions and
restrictions set forth in the Declaration or in the Deed of Apartment. Failure to comply
with any of them shall be a ground for an action to recover sums due for damages or
injunctive relief or both maintainable by the Manager or Board of Managers on behalf
of the Association of Apartment Owners or, in a proper case by an aggrieved apartment
owner.
 269

Certain works prohibited

8. No apartment owner shall do any work which would jeoparadise the soundness
or safety of the property, reduce the value thereof or impair any easement or
hereditament nor may any apartment owner add any material structure or excavate any
additional basement or cellar without, in every such case, the unanimous consent of all
the other apartment owners being first obtained.

Encumbrances against apartments, removal from encumbrances,

effect of part payment etc.

9. (1) Subsequent to recording the Declaration as provided in this Act, and while the
property remains subject to the Act, no encumbrance of any nature shall thereafter arise
or be effective against the property. During such period encumbrances may arise or be
created only against each apartment and the percentage of undivided interest in the
common areas and facilities appurtenant to such apartment, in the same manner and
under the same conditions in every respect as encumbrances may arise or be created
upon or against any other separate parcel of property subject to individual ownership:
Provided that if during the period any encumbrance has arisen or been created
against such apartment and the percentage of undivided interest in the common areas
and facilities appurtenant to such apartment, no apartment and such percentage of
undivided interest shall be partitioned or sub-divided in interest:
Provided further that, no labour performed or materials furnished with the
consent or at the request of an apartment owner or his agent or his contractor or sub-
contractor shall be the basis for a charge or any encumbrance under the provisions of
the Transfer of Property Act, 1882 (Central Act 4 of 1882), against the apartment or any
other property of any other apartment owner not expressly consenting to or requesting
them, except that such express consent shall be deemed to be given by the owner of any
apartment in the case of emergency repairs thereto. Labour performed and materials
furnished for the common areas and facilities, if duly authorised by the Association of
Apartment Owners, the Manager or Board of Managers in accordance with this Act, the
Declaration or bye-laws, shall be deemed to be performed or furnished with the express
consent of each apartment owner and shall be the basis for a charge or encumbrance
under the Transfer of Property Act, 1882 (Central Act 4 of 1882), against each of the
apartments and shall be subject to the provisions of sub-section (2).
(2) In the event of a charge or any encumbrance against two or more
apartments becoming effective, the apartment owners of the separate apartments may
remove their apartments and the percentage of undivided interest in the common areas
and facilities appurtenant to such apartments from the charge or encumbrance by
payment of the fractional or proportional amounts attributable to each of the
apartments affected. Such individual payment shall be computed by reference to the
percentages appearing in the Declaration. Subsequent to any such payment, discharge
or other satisfaction, the apartment and the percentage of undivided interest in the
 270

common areas and facilities appurtenant thereto shall thereafter be free and clear of the
charge or encumbrance so paid, satisfied or discharged. Such partial payment,
satisfaction or discharge shall not prevent the person having a charge or any other
encumbrance from proceeding to enforce his rights against any apartment and the
percentage of undivided interest in the common areas and facilities appurtenant thereto
not so paid, satisfied or discharged.

Common profits and expenses

10. The common profits of the property shall be distributed among and the common
expenses shall be charged to, the apartment owners according to the percentage of the
undivided interest in the common areas and facilities.

Contents of Declaration
11.(1) The Declaration shall contain the following particulars, namely: -

(a) description of the land on which the building and improvements are to be
located; and whether the land is freehold or leasehold;
(b) description of the building stating the number of storeys and basements, the
number of apartments and the principal materials of which it is or is to be constructed;
(c) the apartment number of each apartment, and a statement of its location,
approximate area, number of rooms, and immediate common area to which it has
access, and any other data necessary for its proper identification;
(d) description of the common areas and facilities;
(e) description of the limited common areas and facilities, it any, stating to
which apartments their use is reserved;
(f) value of the property and of each apartment, and the percentage of
undivided interest in the common areas and facilities appertaining to each apartment
and its owner for all purposes, including voting; and a statement that the apartment
and such percentage of undivided interest are not encumbered in any manner
whatsoever on the date of the declaration;
(g) statement of the purpose for which the building and each of the apartments
are intended and restricted as to us;
(h) the name of a person to receive service of process in the cases hereinafter
provided, together with the residence or place of business of such person which shall be
within the city, town or village in which the building is located;
(i) provision as to the percentage of votes by the apartment owners which shall
be determinative of whether to rebuild, repair, restore, or sell the property in the event
of damage or destruction of all or part of the property;
(j) any other details in connection with the property which the person executing
the Declaration may deem desirable to set forth consistent with this Act; and
(k) the method by which the Declaration may be amended consistent with the
provisions of this Act.
 271

(2) A true copy each of the Declaration and bye-laws and all amendments to the
Declaration or the bye-laws shall be filed in the Office of the competent authority.

Contents of Deeds of Apartments

12. (1) Deeds of Apartments shall include the following particulars, namely: -

(a) description of the land as provided in section 11 of this Act or the post office
address of the property, including in either case the book, page and date of executing
the Declaration, the date and serial number of its registration, under the Registration
Act, 1908 (Central Act 16 of 1908), and the date and other reference if any, of its filing
with the competent authority;
(b) the apartment number of the apartment in the Declaration and any other
data necessary for its proper identification;
(c) statement of the use for which the apartment is intended and restrictions on
its use, if any:
(d) the percentage of undivided interest appertaining to the apartment in the
common areas and facilities; and
(e) any further details which the parties to the Deed may deem desirable to set
forth consistent with the Declaration and this Act.

(2) A true copy of every Deed of Apartment shall be filed in the Office of the
competent authority.

Declaration Deeds of Apartments and copies of

floor plans to be registered

13. (1) The Declaration and all amendments thereto and the Deed of Apartment in
respect of each apartment and the floor plans of the buildings referred to in sub-section
(2) shall be registered under this Registration Act, 1908 (Central Act 16 of 1908).

(2) Simultaneously with the registration of the Declaration there shall be filed
along with it a set of the floor plans of the building showing the layout, location,
apartment numbers and dimensions of the apartments, stating the name of the building
or that it has no name, and bearing the verified statement of an architect or an engineer
approved by the Government for the purpose (hereinafter in this sub-section referred to
as approved engineer) certifying that it is an accurate copy of portions of the plans of
the building as filed with and approved by the local authority within whose jurisdiction
the building is located. If such plans do not include a verified statement by such
architect or approved engineer that such plans fully and accurately depict the layout
location, apartment number and dimensions of the apartments as built, there shall be
recorded prior to the first conveyance of any apartment, an amendment to the
Declaration to which shall be attached a verified statement of an architect or an
 272

approved engineer certifying that the plans theretofore filed, or being filed
simultaneously with such amendment, fully and accurately depict the layout, location,
apartment number and dimensions of the apartment as built.

(3) In all registration offices a book called "Register of Declarations and Deeds of
Apartments under the Puducherry Apartment Ownership Act, 1987" and Index relating
thereto shall be kept. The Book and the Index shall be kept in such form and shall
contain such particulars as may be prescribed.

(4) It shall be the duty of every Manager or Board of Managers to send to the Sub-
Registrar of the sub-district in which the property containing the apartment is situated,
or if there is no Sub-Registrar for the areas, to the Registrar of the district in which such
property is situated, a certified copy of the Declaration and Deed of Apartment made in
respect of every apartment contained in the building forming part of the property
together with a memorandum containing such particulars as may be prescribed.

(5) The Sub-Registrar, or as the case may be, the Registrar shall register the
Declaration along with floor plans of the building and the Deed of Apartment in the
"Registrar of Declarations and Deeds of Apartments under the Puducherry Apartment
Ownership Act, 1987" and shall also enter particulars in the Index kept under sub-
section (3). Any person acquiring any apartment of any apartment owner shall be
deemed to have notice of the Declaration and of the Deed of Apartment as from the
date of its registration under this section.

(6) Except as provided in this section, the provisions of the Registration Act, 1908
(Central Act 16 of 1908), shall mutatis mutandis apply to the registration of such
Declaration and Deeds of Apartments, and the words and expressions used in this
section but not defined in this Act shall have the same meanings as assigned to them in
the Registration Act, 1908 (Central Act 16 of 1908).

Removal from provisions of this Act

14. (1) All the apartment owners may remove a property from the provisions of this
Act by an instrument to that effect duly executed:

Provided that, the holders of all charges and other encumbrances affecting any
of the apartments shall consent thereto or agree, in either case by instruments duly
executed, that their charges or encumbrances be transferred to the percentage of the
undivided interest of the apartment owner in the property as hereinafter provided.

(2) Upon the removal of the property from the provisions of this Act, the
property shall be deemed to be owned in common by the apartment owners. The
undivided interest in the property owned in common which shall apportion to each
 273

apartment owner shall be the percentage of undivided interest previously owned by

such owner in the common areas and facilities.

Removal no bar to subsequent submission of property to this Act

15. The removal of the property from the provisions of this Act as provided for in
the preceding section shall in no way bar the subsequent resubmission of the property
to the provisions of this Act.

Bye-laws and their contents

16.(1) The administration of every property shall be governed by bye-laws, a true

copy of which shall be annexed to the Declaration. No modification of or amendment to
the bye-law shall be valid, unless set forth in an amendment to the Declaration and such
amendment is duly recorded and a copy thereof is duly filed with the competent
authority.
(2) The bye-laws shall provide for the following matters, namely: --

(a) the election from among the apartment owners, of a Board of Managers,
the number of persons constituting the Board, and that the terms of at least one-third of
the members of such Board shall expire annually; the powers and duties of the Board;
the method of removal from office of members of the Board; and whether or not the
Board may engage the services of a Secretary, a Manager or Managing Agent, and
specifying which of the powers and duties granted to the Board by this Act or otherwise
may be delegated by the Board to either or both of them;
(b) method of calling meetings of the apartment owners; what percentage, if
other than a majority of apartment owners, shall constitute a quorum;
(c) election of a President from among members of the Board of Managers
who shall preside over the meetings of such Board and of the Association of Apartment
Owners;
(d) election of a Secretary who shall keep a minute book wherein resolutions
shall be recorded;
(e) election of a Treasurer who shall keep the financial records and books of
accounts;
(f) maintenance, repair and replacement of the common areas and facilities
and payments therefor;
(g) manner of collecting from the apartment owners their share of the
common expenses;
(h) designation and removal of persons employed for the maintenance ,
repair and replacement of the common areas and facilities;
(i) the method of adopting and of amending administrative rules and
regulations governing the details of the operation and use of the common areas and
facilities;
 274

(j) such restrictions on the requirements respecting the use and maintenance
of the apartments and the use of the common areas and facilities not set forth in the
Declaration, as are designed to prevent unreasonable interference with the use of their
respective apartments and of the common areas and facilities by the several apartment
owners; and
(k) the percentage of the votes required to amend the bye-laws.

(3) The bye-laws may also provide for the following matters, namely:-

(a) subject to the provisions of this Act, provision for regulating transfer or
partition of any apartment and percentage of undivided interest in the common areas
and facilities appurtenant to such apartment, subject to such terms and conditions as
may be specified in the bye-laws;
(b) provisions enabling the Board of Managers to retain certain areas of the
building and lease to non-residents for commercial purposes and for distribution of
resulting proceeds to the apartment owners as income or application thereof in
reduction of their common charges for maintaining the building; and
(c) any other provisions, not inconsistent with the provisions of this Act,
relating to the audit and accounts and administration of the property and annual and
special general meetings, annul report etc.

Waiver of use of common areas and facilities, abandonment of apartment

17. No apartment owner may exempt himself from liability for his contribution
towards the common expenses by waiver of the use or enjoyment of any of the common
areas and facilities or by abandonment of his apartment.

Separate assessment

18. Notwithstanding anything to the contrary contained in any law relating to local
authorities, each apartment and its percentage of undivided interest in the common
areas and facilities appurtenant to such apartment, being an apartment submitted to the
provisions of this Act, shall be deemed to be separate property for the purpose of
assessment to tax on lands and buildings leviable under such law and shall be assessed
and taxed, accordingly; and for this purpose, a local authority shall make all suitable
rules to carry out the provisions of this section. Neither the building, the property nor
any of the common areas and facilities shall be deemed to be separate property for the
purposes of the levy of such tax.

Charge on property for common expenses

19. All sums assessed by the Association of Apartment Owners but unpaid for the
share of the common expenses chargeable to any apartment shall constitute a charge on
 275

such apartment in priority to all other charges, except only to (i) the charge if any of the
apartment for payment of Government and Municipal taxes and (ii) all sums unpaid on
a first mortgage of the apartment.

Joint and several liability of vendor, etc.

20.(1) Upon the sale of an apartment, the purchaser of the apartment shall be jointly
and severally liable with the vendor for all unpaid assessments against the latter for his
share of the common expenses upto the time of the sale without prejudice to the
purchaser’s or grantee’s right to recover from the vendor the amount paid by the
purchaser or grantee therefor.
(2) A purchaser referred to in sub-section (1) shall be entitled to a statement from
the Secretary or Board of Managers, setting forth the amount of the unpaid assessment
against the vendor and such purchaser or grantee shall not be liable for, nor shall the
apartment sold be subject to a charge for any unpaid share of common expenses against
such apartment accrued prior to such sale or bequest in excess of the amount therein set
forth.
Insurance

21.(1) The Manager or Board of Managers, if required by the Declaration or the bye-
laws or by a majority of the apartment owners, or at the request of a mortgagee having
a first mortgage covering the property, shall have the authority to and shall obtain
insurance for the property against loss or damage by fire and such other hazards under
such terms and for such amounts as shall be required or requested.
(2) Insurance referred to in sub-section (1) shall be written in the name of the
Manager or of the Board of Managers of the Association of the Apartment Owners as
trustee for each of the apartment owners in the percentages established in the
Declaration.
(3) Premiums in respect of insurance referred to in sub-section (1) shall be
common expenses and such insurance shall be without prejudice to the right of each
apartment owner to insure his own apartment for his benefit.

Disposition of property, destruction and damage

22. If within sixty days of the date of damage or destruction to all or part of the
property, it is not determined by the Association of Apartment owners to repair,
reconstruct or rebuild, then and in that event,

(a) the property shall be deemed to be owned in common by the apartment

owners;
(b) the undivided interest in the property owned in common which shall
appertain to each apartment owner shall be the percentage of the undivided interest
previously owned by such owner in the common areas and facilities;
 276

(c) any encumbrance affecting any of the apartments shall be deemed to be

transferred in accordance with the existing priority to the percentage of the undivided
interest of the apartment owner in the property as provided herein;

(d) the property shall be subject to an action for partition at the suit of any
apartment owner, in which event the net proceeds of sale together with the net
proceeds of the insurance on the property, if any, shall be considered as one fund and
shall be divided among all the apartment owners in percentage equal to the percentage
of undivided interest owned by each owner in the property after first paying out all the
respective shares of the apartment owners to the extent sufficient for the purpose and
all charges on the undivided interest in the property owned by each apartment owner.

Action
23. Without limiting the rights of any apartment owner, actions may be brought by
the Manager or Board of Managers, in either case in the discretion of the Board of
Managers, on behalf of two or more of the apartment owners as their respective interest
may appear with respect to any cause of action relating to the common areas and
facilities or more than one apartment. Service of process on two or more apartment
owners in any action relating to the common areas and facilities or more than one
apartment may be made on the person designated in the Declaration to receive service
of process.
Act to be binding on apartment owners, tenants, etc.
24.(1) All apartment owners, tenants of such owners, employees of owners and
tenants, or any other person that may in any manner use property or any part thereof
submitted to the provisions of this Act shall be subject to this Act and to the Declaration
and the bye-laws of the Association of Apartment Owners adopted pursuant to the
provisions of this Act.
(2) All agreements, decisions and determinations lawfully made by the
Association of Apartment Owners in accordance with the voting percentages
established under this Act, Declaration or bye-laws, shall be deemed to be binding on
all apartment owners.
Power to make rules
25.(1) The Government may, subject to the condition of previous publication, by
notification in the Official Gazette, make rules for carrying into effect the provisions of
this Act.
(2) All rules made and all notifications issued under this Act shall, as soon as
possible after they are made or issued, be placed on the table of the Legislative
Assembly of the Union territory and shall be subject to such modification by way of
amendment or repeal as the Legislative Assembly may make within fourteen days on
which the House actually sits either in the same session or in more than one session:
Provided however that any modifications or annulment shall not affect the
validity of any thing already done and acted upon under such rules and notifications.
 277

Removal of doubt
26. For the removal of doubt, the provisions of the Transfer of Property Act, 1882
(Central Act 4 of 1882), shall, in so far as they are not inconsistent with the provisions of
this Act, apply to every apartment together with its undivided interest in the common
areas and facilities appurtenant to such apartment as those provisions apply in relation
to any immovable property, and the provisions of this Act shall take effect
notwithstanding anything to the contrary contained in any contract.
Severability
27. If any provision of this Act or any section, sentence, clause, phrase or word,
application thereof in any circumstances is held invalid, the validity of the remainder of
this Act and of the application of any such provision, section, sentence, clause, phrase or
word, in any other circumstances shall not be affected thereby.
_______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.8 OF 1987

People who are required to reside within the periphery of town by virtue of their
employment, business etc., have a tendency to look out for residential houses within the
short radius of the town. This has resulted in a vast demand for accommodation and as
such public experience much hardship to have a residence of their own at a reasonable
cost within the periphery of the town.
To mitigate the hardship, experienced by the public, the Puducherry Housing
Board is contemplating construction of multi-storeyed flats for providing housing to the
public in the periphery of the Puducherry town. In order to provide for ownership of
individual apartments in a building after construction and to make such apartment a
heritable and transferable property, it is considered that a separate law may be made for
the purpose.
The Organisations and Undertakings, which are engaged wholly in construction
of houses shall also be able to obtain the benefits if they construct multi-storeyed
housing complex and allot apartments on a flat house system as per the provisions of
this Act.
This Bill seeks to achieve the above object.
________
 278

THE PUDUCHERRY SCHOOL EDUCATION ACT, 1987

(No.9 to 1987)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER - I
PRELIMINARY

1. Short title, extent and commencement

2. Definitions
CHAPTER - II

ESTABLISHMENT, PERMISSION FOR ESTABLISHMENT AND

MANAGEMENT OF PRIVATE SCHOOLS

3. Power of Government to regulate school education

4. New private school to obtain permission
5. Application for permission and sending of statement
6. Grant of permission
7. Permission deemed to be granted in certain cases
8. Approval of transfer of permission
9. Minority school to be established without permission
10. Minority schools to send statements
11. Scheme of management
CHAPTER - III
RECOGNITION OF PRIVATE SCHOOL

12. Recognition of private school

13. Withdrawal of recognition by appropriate authority
14. Effect of withdrawal of recognition
15. Payment of grant
CHAPTER - IV
SCHOOL PROPERTY
16. School property
 279

CHAPTER - V

TERMS AND CONDITIONS OF SERVICE OF TEACHERS

AND OTHER PERSONS EMPLOYED IN PRIVATE SCHOOLS

17. Qualifications, conditions of service, etc., of teachers and other persons employed in
recognised schools
18. Appointment of teachers and other employees in recognised schools
19. Teachers and other persons employed in recognised schools to be governed by Code
of Conduct
20. Suspension of teachers or other persons of recognised schools
21. Appeal against orders of punishment imposed on teachers and other persons
employed in recognised schools
22. Second appeal in case of dismissal, removal or reduction in rank or termination of
teachers or other persons employed in recognised schools
23. Special provision regarding appeal in certain past disciplinary cases
24. Pay and allowance of teachers and other persons employed in recognised schools to
be paid in the prescribed manner.
25. Chapter to have overriding effect.

CHAPTER - VI
ADMISSION TO SCHOOLS AND FEES

26. Admission to recognised schools

27. Fees and other charges
28. School Fund
29. Affiliations
CHAPTER-VII
TAKING OVER THE MANAGEMENT OF SCHOOLS

30. Taking over the management of schools.

31. Section 30 not to apply to minority schools.
CHAPTER - VIII
ACCOUNTS, AUDIT, INSPECTION AND RETURNS

32. Accounts
33. Annual audit of accounts
34. Inspection or inquiry
35. Furnishing of returns, etc.
 280

CHAPTER - IX
GENERAL PROVISIONS REGARDING APPEAL AND REVISION

36. Appeal against orders of appropriate authority

37. Tribunal
38. Time for appeal and powers of appellate authority
39. Deposit with the Tribunal of pay and allowances of teachers and other persons
employed in recognised schools in certain cases
40. Revision

CHAPTER - X
PENALTIES AND PROCEDURES

41. Penalty for not giving information or giving false information

42. Other penalties
43. Offences by companies
44. Cognizance of offences
CHAPTER - XI
MISCELLANEOUS

45. Puducherry Schools Education Advisory Board

46. Delegation of powers of Government
47. Civil Court not to decide questions under this Act
48. Indemnity
49. Power to make rules
50. Power to remove difficulties

_____
 281

THE PUDUCHERRY SCHOOL EDUCATION ACT, 1987

(No.9 to 1987)
(20-10-1987)
AN
ACT
to provide for better organisation and development of school education in the
Union territory of Puducherry and for matters connected therewith or incidental
thereto.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-eighth

Year of the Republic of India as follows : -

CHAPTER - I

PRELIMINARY

Short title, extent and commencement

1. (1) This Act may be called the Puducherry School Education Act, 1987.

(2) It extends to the whole of the Union territory of Puducherry.

+(3)
It shall come into force on such date as the Administrator may, by
notification, appoint and different dates may be appointed for different provisions of
this Act and reference to the commencement of this Act in relation to any provision
thereof shall be construed as a reference to the date on which that provision comes into
force.

Definitions

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

(a) “academic year” means the year commencing on the first day of January or
June;

+ I. Sections 1, 2, 3 and 49 of the Act came into force w.e.f 22.6.1989 vide Notification published in EG Pt. I No. 28,
dated 29.7.1989.
II. Sections 4 to 48 and 50 of the Act came into force w.e.f 1.7.1995 vide Notification published in EG Pt. II No. 15,
dated 19.9.1995
 282

(b) “aid” means any aid granted to a recognised school by the Central
Government, the Government, a local authority or any other authority designated by
the Central Government, the Government or a local authority;
(c) “aided school” means a recognised school which is receiving aid in the form
of maintenance grant from the Central Government, the Government, or a local
authority or any other authority designated by the Central Government, the
Government, or a local authority;
(d) “appropriate authority” means any authority, officer or person authorised by
the Government, by notification, to perform the functions of the appropriate authority
or any other authority under this Act for such area or in relation to such class of private
schools, as may be specified in the notification;
(e) “Director” means the Director of Education, Puducherry, and includes any
other officer authorised by him to perform all or any of the functions of the Director
under this Act;
(f) “educational agency” in relation to, --

(a) any minority school, means any person who, or body of persons which
has established and is administering or proposes to establish and administer such
minority school; and
(b) any other private school, means any person or body of persons
permitted or deemed to be permitted under this Act to establish and maintain such
other private school;

(g) “employee” means a teacher and includes every other employee working in a
recognised school;
(h) “existing employee” means an employee of an existing school who is
employed in such school immediately before the commencement of this Act, and
includes an employee who was employed in such school for a period of not less than
twelve months immediately preceding the commencement of this Act;
(i) “existing school” means a recognised private school which is in existence at
the commencement of this Act;
(j) “Government” means the Administrator of the Union territory of Puducherry
appointed by the President under article 239 of the Constitution;
(k) “Head of School” means the principal academic officer, by whatever name
called, of a recognised school;
(l) “manager”, in relation to a school, means the person, by whatever name
called, who is entrusted, either on the date on which this Act comes into force or, as the
case may be, under a scheme of management made under section 11, with the
management of the affairs of that school;
(m) “minority school” means a private school of its choice established and
administered, or administered, by any such minority whether based on religion or
language as has the right to do so under clause (1) of article 30 of the Constitution;
(n) “notification” means a notification published in the Official Gazette;
 283

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

(p) “private school” means a pre-primary, primary, middle or high school or
higher secondary school or any other institution imparting education or training,
established and administered or maintained by any person or body of persons, but does
not include a school or an institution --
(i) imparting technical or professional education;
(ii) established and administered or maintained by the Central Government
or the Government or any other authority designated or sponsored by
the Central Government or the Government;
(iii) maintained or approved by, or affiliated to, any University established
by law; or
(iv) giving, providing or imparting religious instruction alone, but not any
other instruction;

(q) “public examination” means an examination conducted by the Boards of

Secondary Education in the States of Tamil Nadu, Kerela and Andhra Pradesh or any
other Board or authority which may hereafter be established for the purpose, and
recognised by the Government or any other officer authorised by him in this behalf ;
(r) “recognised school” means a private school recognised by the appropriate
authority;
(s) “school property” means all movable and immovable property belonging to,
or in the possession of, the school and all other rights and interests in, or arising out of,
such property, and includes land, building and its appurtenances, playgrounds, hostels,
furniture, books, apparatus, maps, equipment, utensils, cash, reserve funds,
investments and bank balances ;
(t) “teacher” includes the Head of a School ;
(u) “Tribunal” means a Tribunal constituted under section 37 ; and
(v) “unaided minority school” means a minority school which does not receive
any aid.

CHAPTER - II

ESTABLISHMENT, PERMISSION FOR ESTABLISHMENT AND MANAGEMENT OF

PRIVATE SCHOOLS

Power of Government to regulate school education

3. The Government may regulate the different stages of education and courses of
instruction in private schools.
 284

New private school to obtain permission

4. Save as otherwise expressly provided in this Act, no person shall, without the
permission of the appropriate authority and except in accordance with the terms and
conditions specified in such permission, establish any private school on or after the date
of the commencement of this Act.

Application for permission and sending of statement

5. (1) The educational agency of every private school proposed to be established on

or after the date of the commencement of this Act shall make an application to the
appropriate authority for permission to establish such school.
(2) Every such application shall --

(a) be in the prescribed form ;

(b) be accompanied by such fee not exceeding one hundred rupees as may be
prescribed ; and
(c) contain the following particulars, namely :-

(i) the name of the private school and the name and address of the
educational agency ;
(ii) the need for the private school in the locality ;
(iii) the course for which such private school proposes to prepare, train or
guide its pupils for appearing at any examination conducted by, or
under the authority of, the Government ;
(iv) the amenities available to pupils and teachers ;
(v) the equipment, laboratory, library and other facilities for instruction ;
(vi) the sources of income to ensure the financial stability of the private
school ;
(vii) the situation and the description of the buildings in which such
private school is proposed to be established ; and
(viii) such other particulars as may be prescribed.

(3) The educational agency of every private school in existence on the date of the
commencement of this Act shall, before the expiry of six months from that date, send to
the appropriate authority a statement in the prescribed form containing -

(a) the particulars specified in clause (c) [excluding sub-clause (ii) thereof] of
sub-section (2) ;
(b) the names of the members of the teaching and non-teaching staff and the
educational qualifications of each such member ; and
(c) the number of pupils and classes in the private school.
 285

Grant of permission

6. On receipt of an application under sub-section (1) of section 5, the appropriate

authority –

(a) may, after considering the particulars contained in such application, grant or
refuse to grant the permission ; and
(b) shall communicate its decision to the applicant within a period of four
months from the date of such receipt :

Provided that the permission shall not be refused under that section unless the
applicant has been given an opportunity of making his representations:
Provided further that in case of refusal of the permission the applicant shall be
entitled to refund of one-half of the amount of the fee accompanying the application.

Permission deemed to be granted in certain cases

7. On receipt of a statement under sub-section (3) of section 5 from any private

school in existence immediately before the date of the commencement of this Act,
permission under section 6 shall be deemed to have been granted to such private school
but no fee shall be payable for any such permission.

Approval of transfer of permission

8. (1) Whenever there is any change in the constitution of the educational agency,
that agency shall apply to the appropriate authority for approval of such change.

(2) Whenever the management of any private school is proposed to be

transferred, the educational agency and the person to whom the management is
proposed to be transferred may, before such transfer, apply jointly to the appropriate
authority for approval of the transfer.
(3) On any transfer of the management of a private school, without approval
having been obtained for such transfer under sub-section (2), the transferee shall, if
desires to run it as such, apply to the appropriate authority within three months of the
date of the transfer for approval of the transfer.
(4) An application under sub-section (1), sub-section (2) or sub-section (3), shall be
in such form and contain such particulars as may be prescribed.
(5) On receipt of an application under this section for approval, the appropriate
authority shall-
 286

(a) if it is satisfied, after making such inquiry as it deems fit, that the educational
agency will continue to maintain and manage or, as the case may be , that the transferee
will maintain and manage, the private school, in accordance with the provisions of this
Act and the rules made thereunder, approve the change or, as the case may be, the
transfer, subject to such conditions as it may impose ; and

(b)communicate its decision to the applicant within a period of three months

form the date of such receipt.

Minority school to be established without permission

9. Any minority whether based on religion or language may establish and

administer any private school without permission under section 6.

Minority schools to send statements

10. (1) Every minority school in existence immediately before the date of the
commencement of this Act shall send to the appropriate authority a statement
containing the particulars specified in clause (c) excluding sub-clause (ii) thereof of
sub-section (2) of section 5 within such time as may be prescribed.
(2) Every minority school established and administered after the date of the
commencement of this Act shall send to the appropriate authority a statement
containing particulars specified in clause (c) of sub-section (2) of section 5 within such
time as many be prescribed.

Scheme of management

11. (1) Notwithstanding anything contained in any other law for the time being in
force or in any instrument having effect by virtue of any such law, the educational
agency of every private school shall make in accordance with the rules made under this
Act and with the previous approval of the appropriate authority, a scheme of
management for such school:

Provided that in the case of a private school which does not receive any aid, the
scheme of management shall apply with such variations and modifications as may be
prescribed:

Provided further that so much of this sub-section as relates to the previous

approval of the appropriate authority, shall not apply to a scheme of management for
unaided minority school.

(2) A scheme may be made, in like manner, to add to, vary or modify any scheme
made under sub-section (1).
 287

CHAPTER - III

RECOGNITION OF PRIVATE SCHOOL

Recognition of private school

12.(1) On receipt of an application by-

(a) any private school in respect of which permission has been or is deemed to have
been granted under section 6: or
(b) any minority school ;

the appropriate authority may, after satisfying itself, that proper arrangements have
been made for the maintenance of academic standard in the school, that the provisions
of this Act are complied with and that the prescribed conditions have been satisfied
grant a certificate recognising the private school for the purposes of this Act.

(2) The certificate under sub-section (1) shall be granted within such period as
may be prescribed.

Withdrawal of recognition by appropriate authority

13. (1) The appropriate authority may withdraw permanently or for any specified
period the recognition of any private school—

(a) which does not comply with any of the provisions of this Act or any rules
made or directions issued thereunder in so far as such provisions, rules or directions are
applicable to such private school, or
(b) in respect of which the pay and allowances payable to any teacher or other
person employed in such private school are not paid to such teacher or other person in
accordance with the provisions of this Act or the rules made thereunder, or
(c) which contravenes or fails to comply with any such conditions as may be
prescribed.

(2) Before withdrawing the recognition under sub-section (1), the appropriate
authority shall give the educational agency an opportunity of making its representation.

Effect of withdrawal of recognition

14. Any private school which is unrecognised or the recognition of which has been
withdrawn shall not be entitled to –
(a) receive any grant or other financial assistance from the Government; or
(b) prepare, train or guide pupils for appearing at any public examination.
 288

Payment of grant

15. (1) The Government may grant aid to recognised schools such sums of money
and for such purposes as may be prescribed.
(2) The Government may withhold permanently or for any specified period the
whole or part of any aid referred to in sub-section (1) in respect of any private school, --

(a) which does not comply with any of the provisions of this Act or any rules
made or directions issued thereunder in so far as such provisions, rules or directions are
applicable to such private school, or
(b) in respect of which the pay and allowances payable to any teacher or
other person employed in such private school are not paid to such teacher or other
person in accordance with the provisions of this Act or the rules made thereunder, or
(c) which contravenes or fails to comply with any such conditions as may be
prescribed.

(3) Before withholding the grant under sub-section (2) the Government shall give
the educational agency an opportunity of making its representation.

CHAPTER - IV

SCHOOL PROPERTY
School property

16. (1) The management of every aided school shall furnish to the appropriate
authority, initially, at the time of grant of aid and thereafter annually, a statement
containing a list of school property together with such particulars as may be prescribed.
(2) Notwithstanding anything contained in any other law for the time being in
force, no transfer, mortgage or lease of any movable or immovable property of an aided
school, not being the property specified in the rules, shall be made except with the
previous permission of the appropriate authority:

Provided that where the appropriate authority omits or fails to dispose of the
application for such permission within sixty days from the date of receipt of the
application in this behalf, the permission shall, on the expiry of the said period of sixty
days, be deemed to have been granted.

(3) Any person aggrieved by the grant or refusal of permission under sub-section
(2) may prefer, in such form and within such time as may be prescribed, appeal to the
Government against such grant or refusal of permission and the decision of the
Government thereto shall be final.
(4) Any transaction made in contravention of the provisions of sub-section (2), or,
as the case may be, decision of the Government, shall be void.
 289

CHAPTER - V

TERMS AND CONDITIONS OF SERVICE OF TEACHERS

AND OTHER PERSONS EMPLOYED IN PRIVATE SCHOOLS

Qualifications, conditions of service, etc., of teachers

and other persons employed in recognised schools

17. The Government may make rule regulating the number, qualifications and
conditions of service (including promotion, Pay, allowances, leave, pension, provident
fund, insurance and age of retirement and rights as respect disciplinary matters) of the
teachers and other persons employed in any recognised school.

Appointment of teachers and other employees in recognised schools

18. (1) No person who does not possess the qualifications prescribed under section
17 shall on or after the date of the commencement of this Act be appointed as teacher or
other employee in any recognised school.

(2) Nothing contained in this section or any rule made thereunder shall apply to
any person who, on or before the date of the commencement of this Act, is employed as
teacher or other employee in any recognised school.

Teachers and other persons employed in recognised schools to be

governed by Code of Conduct

19. (1) Every teacher and every other person employed in any recognised school
shall be governed by such Code of Conduct as may be prescribed and if any teacher or
other person so employed violates any provision of such Code of Conduct, he shall be
liable to such disciplinary action as may be prescribed.

(2) The manager may define the standards, of conduct to be observed by teachers
and other persons employed in the recognised school, such standards not being
inconsistent with the provisions of this Act and rules made thereunder.
Suspension of teachers or other persons of recognised schools

20. (1) No teacher or other person employed in any recognised school shall be placed
under suspension, except when an inquiry into the gross misconduct, within the
meaning of the Code of Conduct prescribed under sub-section (1) of section 19, of such
teacher or other person is contemplated.
 290

(2) No such suspension shall remain in force for more than a period of two
months from the date of suspension and if such inquiry is not completed within that
period, such teacher or other person shall, without prejudice to the inquiry, be deemed
to have been restored as teacher or other employee:

Provided that the appropriate authority may, for reasons to be recorded in

writing, extend the said period of two months, for a further period not exceeding two
months, if, in the opinion of such appropriate authority, the inquiry could not be
completed within the said period of two months for reasons directly attributable to such
teacher or other persons.

Appeal against orders of punishment imposed on teachers and

other persons employed in recognised schools

21. (1) Any teacher or other person employed in any recognised school,-

(a) who is dismissed, removed or reduced in rank or whose appointment

is otherwise terminated ; or
(b) whose pay or allowances or any of whose conditions of service are altered
or interpreted to his disadvantage,

by an order, may prefer an appeal against such order to such authority or officer not
below the rank of the Director of Education, Puducherry, as may be prescribed ; and
different such authorities or officers may be prescribed for different classes of private
schools.

Explanation. - In this section, the expression “order” includes any order made
on or after the date of the commencement of this Act in any proceedings which were
pending on that date.

(2) The appellate authority may, after giving the parties an opportunity of
making their representations, pass such order on the appeal as it may deem fit:

Provided that in disposing of an appeal under this section in relation to a

minority institution, the appellate authority shall consider and shall only consider
whether the procedure for taking disciplinary action prescribed under this Act has been
complied with and if not, whether such non-compliance has resulted in the failure of
justice, and pass orders –

(i) confirming or setting aside the said order : or

(ii) remitting the case to such authority with such directions as it may deem
fit in the circumstances of the case.
 291

Second appeal in case of dismissal, removal or reduction in rank or termination of

teachers or other persons employed in recognised schools

22. If the appeal under section 21 was against the dismissal, removal or reduction in
rank or the termination otherwise of the appointment of any teacher or other person
employed in any recognised school, such teacher or other person or the educational
agency aggrieved by any order made in any such appeal may prefer an appeal against
that appellate order to the Tribunal.

Special provision regarding appeal in certain past disciplinary cases

23.(1) If, before the date of the commencement of this Act, any teacher or other
person employed in any recognised school has been dismissed or removed or reduced
in rank or his appointment has been otherwise terminated and any appeal preferred
before the date –

(a) by him against such dismissal or removal or reduction in rank or

termination ; or
(b) by him or the educational agency against any order made before that date
in the appeal referred to in clause (a) is pending on that date, such appeal shall –

(i) in a case falling under clause (a), stand transferred to the appellate
authority prescribed under section 38, or
(ii) in a case falling under clause (b), stand transferred to the Tribunal.

(2) If any such appeal as is referred to in sub-section (1) has been disposed of
before the date of the commencement of this Act, the order made in any such appeal
shall be deemed to be an order made under this Act and shall have effect accordingly.

Pay and allowance of teachers and other persons employed in

recognised schools to be paid in the prescribed manner.

24. The pay and allowances of any teacher or other person employed in any
recognised school shall be paid on or before such day of every month, in such manner
and by or through such authority, officer, or person, as may be prescribed.

Chapter to have overriding effect.

25. (1) This Chapter or any rule providing for all or any of the matters specified in
this Chapter or any order made in relation to any such matter shall have effect
notwithstanding –
 292

(a) anything contained in any –

(i) other law for the time being in force, or

(ii) award, agreement or contract of service whether such award, agreement
or contract of service was made before or after the date of the
commencement of this Act, or
(iii) judgment, decree or order of Court, Tribunal or authority, or

(b) that the rules relating to recognition of, or payment of grant, to recognised
schools, had or have no statutory force :

Provided that where, under any such award, agreement, contract of service or
otherwise, any teacher or other person employed in any recognised school is entitled to
benefits in respect of any matter which are more favourable to him than those to which
he will be entitled under this Chapter, such teacher or other person shall continue to be
entitled to the more favourable benefits in respect of that matter, notwithstanding that
he receives benefits in respect of other matters under this Chapter.

(2) Nothing contained in this Chapter shall be construed as precluding any such
teacher or other person from entering into an agreement for granting him rights or
privileges in respect of any matter which are more favourable to him than those to
which he would be entitled under this Chapter.

CHAPTER - VI

ADMISSION TO SCHOOLS AND FEES

Admission to recognised schools

26. (1) A child who has not attained the age of five years shall not be admitted to
class I, or an equivalent class or any class higher than class I, in a recognised school.

(2) A student seeking admission for the first time in a recognised school in a class
higher than class I shall not be admitted to that class if his age reduced by the number
of years of normal school study between that class and class I or an equivalent class,
falls short of five years.

(3) Admission to a recognised school or to any class thereof shall be regulated by

rules made in this behalf.
 293

Fees and other charges

27. (1) No aided school shall levy any fees or collect any other charge or receive any
other payment except those specified by the Director.

(2) Every aided school having different rates of fees or other charges or different
funds shall obtain prior approval of the prescribed authority before levying such fees or
collecting such charges or creating such funds.

(3) The manager of every recognised school shall, before the commencement of
each academic year, file with the Director a full statement of the fees to be levied by
such school during the ensuing academic year and except with the prior approval of the
Director, no such school shall charge, during the academic year, any fee in excess of the
fee specified by its manager in the said statement.

School Fund

28. (1) In every aided school, there shall be a fund, to be called the ‘School Fund”,
and there shall be credited thereto –

(a) any aid granted by the Government,

(b) income accruing to the school by way of fees, charges or other payments,
and
(c) any other contributions, endowments and the like.

(2) The School Fund and all other funds, including the Pupils’ Fund, established
with the approval of the Government, shall be accounted for and operated in
accordance with the rules made under this Act.

(3) In every recognised unaided school, there shall be a fund, to be called the
“Recognised Unaided School Fund”, and there shall be credited thereto income
accruing to the school by way of –

(a) fees,
(b) any charges and payments which may be realised by the school for other
specified purposes, and
(c) any other contributions, endowments, gifts and the like.

(4) (a) Income derived by unaided schools by way of fees shall be utilised only for
such educational purposes as may be prescribed ; and
(b) Charges and payments realised and all other contributions, endowments
and gifts received by the school shall be utilised only for the specific purpose for which
they were realised or received.
 294

(5) The manager of every recognised school shall file every year with the Director
such duly audited financial and other returns as may be prescribed, and every such
return shall be audited by such authority as may be prescribed.

Affiliations
29. (1) For the purpose of any public examination every recognised high school or
higher secondary school shall be affiliated to one or more of the Boards or authorities
conducting such examination and shall fulfil the conditions specified by the Board or
authority in this behalf.
(2) The students of every recognised high school or higher secondary school shall
be prepared for, and presented to, the public examinations or such other form of
evaluation held or made for the students of such schools.
(3) The students of every recognised middle school shall be prepared for, and
presented to, such public examination, as may be specified by the Director.

CHAPTER-VII

TAKING OVER THE MANAGEMENT OF SCHOOLS

Taking over the management of schools.

30. (1) Whenever the Government is satisfied that the educational agency or
manager of any recognised school, has neglected to perform any of the duties imposed
on it or him, by or under this Act or any rule made thereunder and that it is expedient
in the interests of school education to take over the management of such school, it may,
after giving the educational agency or the manager of such school, a reasonable
opportunity of showing cause against the proposed action, take over the management
of such school for a limited period not exceeding three years:

Provided that where the management of a school has been taken over for a
period of three years or less, the Government may, if it is of opinion that in order to
secure proper management of the school it is expedient that such management should
continue to be in force after the expiry of the said limited period, it may, from time to
time, issue directions for the continuance of such management for such period not
exceeding one year at a time as it may think fit, so, however, that the total period for
which such management is taken over shall not, in any case, exceed five years.
(2) Whenever the management of any school is taken over under sub-section (1),
every person incharge of the management of such school immediately before its
management is taken over, shall deliver possession of the school property to the
Government of any officer authorised by it in this behalf.
(3) After taking over the management of any school under this section, the
Government may arrange to manage the school through the Director or any other
person authorised by the Director in this behalf (hereinafter referred to as the
“authorised officer”).
 295

(4) Where the management of any school has been taken over under sub-section
(1), the educational agency or manager of such school may, within three months from
the date of taking over, appeal to the Government, and the Government may after
considering the representation made by educational agency or the manager, pass such
orders, including an order for the restoration of the management or for the reduction of
the period during which the management of such school shall remain vested in the
Government.
(5) Where the management of a school has been taken over under this section,
the Government shall pay such rent as may be payable for the building of the school to
the person entitled to receive it as was being paid by the educational agency or the
manager immediately before the management of such school was taken over.
(6) During such period as any school remains under the management of the
authorised officer –

(a) the service conditions, as approved by the Government, of the employees

of the school who were in employment immediately before the date on which the
management was taken over, shall not be varied to their disadvantage ;
(b) all educational facilities which the school had been affording immediately
before such management was taken over, shall continue to be afforded ;
(c) the School Fund, the Pupils’ Fund and the Management Fund and any
other existing fund shall continue to be available to the authorised officer for being
spent for the purposes of the school ; and
(d) No resolution or order passed by the educational agency of such school
shall be given effect to unless approved by the Government.

Section 30 not to apply to minority schools.

31. Nothing contained in section 30 shall apply to any minority school.

CHAPTER - VIII

ACCOUNTS, AUDIT, INSPECTION AND RETURNS

Accounts

32. Every recognised school shall maintain accounts in such manner and containing
such particulars as may be prescribed.

Annual audit of accounts

33. (1) The accounts of every recognised school receiving aid shall be audited at the
end of every academic year by such authority, officer or person as may be prescribed
and different authorities, officers or persons may be prescribed for different classes of
private schools.
 296

(2) (a) The authority, officer or person, prescribed under sub-section (1) shall send
a copy of the report on the audit of the accounts under that sub-section to the
appropriate authority which shall forward the report to the educational agency.

The educational agency shall, within such time as may be prescribed, submit that
report together with the comments of that agency to the appropriate authority.

Inspection or inquiry

34. (1) The appropriate authority shall have the right to cause an inspection of, or
inquiry in respect of, any recognised school, its buildings, laboratories, libraries,
workshops and equipment, and also of the examinations, teaching and other work
conducted or done by the private school, to be made by such person or persons as it
may direct and to cause an inquiry to be made in respect of any other matter connected
with the private school and the educational agency shall be entitled to be represented
thereat.

(2) The appropriate authority shall communicate to the educational agency the
views of the authority with reference to the results of such inspection or inquiry and
may, after ascertaining the opinion of the educational agency thereon, advise that
agency upon the action to be taken.

(3) The educational agency shall report to the appropriate authority the action, if
any, which is proposed to be taken or has been taken upon the results of such
inspection or inquiry and such report shall be furnished within such time as the
appropriate authority may direct.

(4) Where the educational agency does not, within a reasonable time, take action
to the satisfaction of the appropriate authority that authority may, after considering any
explanation furnished or representation made by the educational agency, issue such
directions as that authority deems fit and the educational agency shall comply with
such directions.

Furnishing of returns, etc.

35. Every educational agency shall, within such time or within such extended time
as may be fixed, by the appropriate authority in this behalf, furnish to that authority
such returns, statistics and other information as the appropriate authority may, from
time to time, require.
 297

CHAPTER - IX

GENERAL PROVISIONS REGARDING APPEAL AND REVISION

Appeal against orders of appropriate authority

36. (1) Any person aggrieved by any order, decision or direction of the appropriate
authority under any provision of this Act may prefer an appeal against such order,
decision or direction, to such authority or officer as may be prescribed; and different
such authorities or officers may be prescribed for different classes of recognised schools.

(2) If the appropriate authority omits to communicate its decision to any

applicant within the period specified in clause (b) of section 6 or in clause (b) of sub-
section (5) of section 8, such applicant may prefer an appeal against such omission to
the appellate authority prescribed under this section.

Tribunal

37. (1) The Government may constitute as many Tribunals as may be necessary for
the purposes of this Act.
(2) Each Tribunal shall consist of one person only who shall be a judicial officer
not below the rank of a District Judge or an officer of equal grade qualified in law and
serving in the Law Department of the Government.
(3) Each Tribunal shall have such jurisdiction and over such area or in relation to
such class of private schools, as the Government may, by notification, from time to time,
determine.
(4) Every Tribunal shall have the same powers as are vested in a civil court
under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while hearing an
appeal.

Time for appeal and powers of appellate authority

38. (1) No appeal under any provision of this Act shall be preferred after expiry of
one month from the date on which the order, decision or direction appealed against,
was received by the appellant:

Provided that the appellate authority may, in its discretion allow further time not
exceeding one month for preferring any such appeal if it is satisfied that the appellant
had sufficient cause for not preferring the appeal in time.
 298

(2) On receipt of any such appeal, the appellate authority shall, after –-

(a) giving the parties an opportunity of making their representations,

(b) making, if necessary, such inquiry as it deems fit, and
(c) considering all the circumstances of the case,

make such order as it deems just and equitable.

(3) The appellate authority may, pending the exercise of its power, pass such
interlocutory orders as it deems fit.

(4) Every appeal under this Act shall be disposed of as expeditiously as possible.

Deposit with the Tribunal of pay and allowances of teachers and

other persons employed in recognised schools in certain cases

39. (1) If the appellate authority referred to in section 38 has, in any appeal under
that section against the dismissal or removal or reduction in rank or the termination
otherwise of the appointment of any teacher or other person employed in any
recognised school, made an order restoring such teacher or other employee as such, no
appeal against the order of such restoration shall be preferred to the tribunal and no
appeal (against the order of such restoration) which, under section 23, stands
transferred to the Tribunal shall be proceeded with by the Tribunal, unless the
educational agency deposits with the Tribunal all arrears of pay and allowances due to
such teacher or other person from the date of his dismissal or removal or reduction in
rank or termination otherwise of his appointment up to the date of deposit, and
continues to deposit the pay and allowances due to such teacher or other person until
the termination of the proceedings before the Tribunal.

(2) the deposit under sub-section (1) shall be made within such time and in such
manner as may be prescribed.

(3) Where there is any dispute as to the amount to be deposited under

sub-section (1), the Tribunal shall on application made to it either by the educational
agency or by such teacher or other person, and after making such inquiry as it deems
fit, determine summarily the amount to be so deposited.

(4) If the educational agency fails to deposit the amount as aforesaid, the
Tribunal shall, unless the educational agency shows sufficient cause to the contrary stop
all further proceedings and make an order directing the educational agency to restore
such teacher or other employee as such.
 299

(5) (a) Where, as a result of any final order made by the Tribunal at the
conclusion of the proceedings before it any amount of pay and allowances as becomes
due to such teacher or other person, such amount shall be paid to him out of the
amount deposited under sub-section (1).

(b) If there is any balance left of the amount deposited under sub-section (1)
after payment under clause (a) of the pay and allowances referred to in that clause, such
balance or, where no amount becomes due as aforesaid to such teacher or other person,
the whole of the amount deposited under sub-section (1), shall be returned to the
educational agency.
Revision

40. (1) The Government may call for and examine the record of any authority or
officer prescribed for the purpose of section 30 in respect of any proceedings to satisfy
themselves as to the regularity of such proceedings or the correctness, the legality or
propriety of any order made, decision taken or direction issued therein; and, if in any
case, it appears to the Government that any such order, decision or direction should be
modified, annulled, reversed or remitted for reconsideration, they may pass orders
accordingly.

(2) No order prejudicial to any person shall be passed under sub-section (1)
unless such person has been given an opportunity of making his representation.

(3) The Government may, pending the exercise of their power under sub-section
(1), pass such interlocutory orders as they deem fit.

CHAPTER - X

PENALTIES AND PROCEDURES

Penalty for not giving information or giving false information

41. If any person, when required, by or under this Act or any rule made under this
Act, to furnish any information, omits to furnish such information or furnishes any
information which he knows, or has reasonable cause to believe, to be false, or not true,
in any material particular, he shall be punishable with fine which may extend to one
hundred rupees.
Other penalties

42. (1) If any person wilfully contravenes, or attempts to contravene, or knowingly

abets the contravention of, any of the provisions of this Act or any rule made
thereunder, he shall be punishable with fine which may extend to five hundred rupees
and in the case of a continuing contravention with an additional fine which may extend
 300

to one hundred rupees for every day during which such contravention continues after
conviction for the first such contravention.

(2) If any person wilfully obstructs any authority, officer or person, from entering
any recognised school in the exercise of any power conferred on it or him by or under
this Act, he shall be punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to one thousand rupees, or with both.

Offences by companies

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

Provided that nothing contained in this sub-section shall render any such person
liable to any punishment, if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1), where any such
offence has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any neglect on the
part of, any director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer, shall be deemed to be guilty of that offence and
shall be liable to be proceeded against and punished accordingly.

Explanation, -- For the purpose of this section, --

(a) “company” means any body corporate and includes a firm, society or other
association of individuals, and
(b) “director” in relation to –

(i) a firm, means a partner in the firm,

(ii) a society or other association of individuals, means the person who is
entrusted, under the rules of the society or other association, with the
management of the affairs of the society or other association, as the case
may be.
 301

Cognizance of offences

44. No court shall take cognizance of any offence punishable under this Act except
on a report in writing of the facts constituting such offence made by an authority or
officer authorised by the Government in this behalf.

CHAPTER - XI

MISCELLANEOUS

Puducherry Schools Education Advisory Board

45. (1) There shall be an Advisory Board for school education, to be called the
“Puducherry School Education Advisory Board” for the purpose of advising the
Government on matters of policy relating to education in the Union territory of
Puducherry.

(2) The Advisory Board shall be constituted by the Government and shall consist
of a Chairman and fourteen other members to be nominated by the Government

(3) The Advisory Board constituted under sub-section (2) shall include-

(a) Heads of private schools ;

(b) representatives of the organisations of teachers of the private schools ;
(c) managers of the private schools ;
(d) representatives of parents or guardians of students of private schools ;
and
(e) eminent educationists.
(4) The Advisory Board shall regulate its own procedure.
(5) The term of office of every member of the Board and travelling and other
allowances payable to a member of the Board shall be such as may be prescribed.

Delegation of powers of Government

46. (1) The Government may, by notification, authorise any authority or officer to
exercise any of the powers vested in them by this Act except the power to make rules
and may in like manner withdraw such authority.

(2) The exercise of any power delegated under sub-section (1) shall be subject to
such restrictions and conditions as may be prescribed or as may be specified in the
notification and also to control and revision by the Government or by such authority or
officer as may be empowered by it in this behalf and the Government shall also have
the power to control and revise the acts or proceedings of any authority or officer so
empowered.
 302

Civil Court not to decide questions under this Act

47. No Civil Court shall have jurisdiction to decide or deal with any question which
is, by or under this Act, required to be decided or dealt with by any authority or officer
mentioned in this Act.
Indemnity

48. (1) No suit or other proceedings shall lie against the Government for any act
done or purporting to be done under this Act or any rule made thereunder.

(2) (a) No suit, prosecution or other proceeding shall lie against any authority,
officer or servant of the Government for any act done or purporting to be done under
this Act or any rule made thereunder without the previous sanction of the Government.

(b) No authority or officer or servant of the Government shall be liable in

respect of any such act in any civil or criminal proceeding if the act was done in good
faith in the course of the execution of the duties or the discharge of the functions
imposed by or under this Act.

(3) No suit, prosecution or other proceeding shall be instituted against any

authority or officer or servant of the Government for any act done or purporting to be
done under this Act or any rule made thereunder after the date of the expiry of six
months from the date of the act complained of.

Power to make rules

49. (1) The Government may, and subject to the condition of previous publication,
by notification, make rules to carry 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 manner in which education may be regulated by the Government in
the Union territory of Puducherry ;
(b) the conditions which every existing school shall be required to comply ;
(c) establishment of a new school or the opening of a higher class or the
closing down of an existing class in an existing school ;
(d) the form manner in which an application for recognition of a school shall
be made ;
(e) the facilities to be provided by a school to obtain recognition ;
(f) the manner in which, and the authority to which, an appeal against the
refusal or withdrawal of recognition shall be made ;
(g) the minimum qualifications for, and method of recruitment, and the
terms and conditions of service of employees ;
 303

(h) the authorities to be specified for the purposes of the different provisions
of this Act ;
(i) the particulars which a scheme of management shall contain, and
the manner in which such scheme shall be made ;
(j) variations and modifications which may be made in the scheme of
management for a recognised school which does not receive any aid ;
(k) the conditions under which aid may be granted to recognised schools,
and on the violation of which aid may be stopped, reduced or
suspended ;
(l) the part of the expenditure of a recognised school which is to be covered
by aid ;
(m) particulars of school property which should be furnished to the
appropriate authority ;
(n) the form in which and the time within which, an appeal shall be
preferred to the Government against an order made in relation to the
transfer, mortgage or lease of any school property ;
(o) the Code of Conduct for the employees and the disciplinary action to be
taken for the violation thereof ;
(p) the benefits which should be granted to the employees of private schools;
(q) admission to a recognised school ;
(r) fees and other charges which may be collected by an aided school ;
(s) the manner of inspection of recognised schools ;
(t) the term of office, traveling and other allowances payable to the
members of the Advisory Board ;
(u) financial and other returns to be filed by the educational agency or the
manager of private schools, and the authority by which such returns
shall be audited ;
(v) educational purposes for which the income derived by way of fees by
recognised unaided schools shall be spent ;
(w) manner of accounting and operation of school funds and other funds of a
private school ;
(x) fees, for preferring any appeal under this Act,
(y) any other matter which is to be, or may be prescribed under this Act.
(3) Every rule made under this Act shall be laid, as soon as may be after it is
made, before the Legislative Assembly of Puducherry while it is in session for a total
period of fifteen 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 the Legislative Assembly agrees in making
any modification in the rule or agrees that the rules 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.
 304

Power to remove difficulties

50. It any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order not inconsistent with the provisions of this Act, remove the
difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the commencement of this Act.

_______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.9 OF 1987

The pattern of education imparted in the Union territory is heterogeneous in nature in

view of the peculiar geographical situation. The Puducherry and Karaikal regions which are
surrounded by the Tamil Nadu areas and which have adopted Tamil as the regional language
follow the pattern of education obtaining in Tamil Nadu. The Mahe region follows the pattern
of Kerala and the Yanam region follows that of Andhra Pradesh. The schools in these regions
are affiliated to the Boards of Education of the State to which they are adjacent. The Education
Department has been adopting the educational rules of the adjacent States which are mostly
executive in nature. This administration is also sanctioning substantial amount to the private
educational institutions by way of grant-in-aid and for this purpose, the Government have
framed, with the approval of the Government of India, grant-in-aid code regulating sanction of
this aid to the private educational institutions. This code is also only executive in nature.

2. In order to achieve uniformity in the standard of education and also to exercise proper
control over the functions of the private schools and also in other matters incidental thereto, it
has been proposed to bring a comprehensive legislation called "The Puducherry School
Education Bill, 1987" in our Legislative Assembly.

3. The above Bill seeks to achieve the above objects.

______
 305

THE PUDUCHERRY EYES (AUTHORITY FOR USE FOR THERAPEUTIC

PURPOSES) ACT, 1988

(Act No. 11 of 1988)

__________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement.

2. Definitions.
3. Authority for removal of eyes of deceased persons.
4. Removal of eyes not to be authorised in certain cases.
5. Authority for removal of eyes in case of unclaimed bodies in hospital or prison.
6. Authority for removal of eyes from bodies sent for post-mortem examination for
medico-legal or pathological purposes.
7. Removal of eyes to be made by registered medical practitioner and in the presence
of police officer.
8. Preservation and deposit of eyes removed from dead bodies.
9. Saving.
10. Protection of action taken in good faith.
11. Power to make rules.

_______
 306

THE PUDUCHERRY EYES (AUTHORITY FOR USE FOR THERAPEUTIC

PURPOSES) ACT, 1988

(Act No. 11 of 1988)

(19-5-1988)
AN
ACT

to provide for the use of eyes of deceased persons for therapeutic purposes and
for matters connected therwith.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-ninth Year

of the Republic of India as follows:-

Short title, extent and commencement.

1. (1) This Act may be called the Puducherry Eyes (Authority for Use for Therapeutic
Purposes) Act, 1988.
(2) It extends to the whole of the Union territory of Puducherry.
† (3) It shall come into force on such date as the Government may, by notification in
the Official Gazette, appoint.
Definitions.
2. In this Act, unless the context otherwise requires,-

(a) “Government” means the Administrator of the Union territory of

Puducherry appointed by the President under article 239of the Constitution;
(b) “near relative”, in relation to a deceased person, means any person related
to him as spouse, parent, son, daughter, brother or sister and includes any other person
who is related to him-

(i) by lineal consanguinity within three degrees or by collateral

consanguinity within six degrees; or
(ii) by marriage with any of the relatives aforesaid.

Explanation:- The expressions “lineal consanguinity” and “collateral

consanguinity” shall have the meanings respectively assigned to them in the Indian
Succession Act, 1925 (Central Act 39 of 1925), and degrees of relationship shall be
computed in the manner laid down in that Act;

† This Act has come into force w.e.f 01-05-1989 vide Notification published in the Gazette of Puducherry
No.20 dated 16-05-1989.
 307

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

(d) “registered medical practitioner” means a medical practitioner who

possesses any recognised medical qualification as defined in clause (h) of section 2 of
the Indian Medical Council Act, 1956 (Central Act 102 of 1956), and who is enrolled on a
State Medical Register as defined in clause (k) of the said section.

Authority for removal of eyes of deceased persons.

3. (1) If any person had, either in writing or orally, in the presence of two or more
witnesses (at least one of whom is a near relative of such person) unequivocally
authorised, at any time before his death, the use of his eyes, after his death, for
therapeutic purposes (such person being hereafter in this sub-section referred to as the
donor), the person lawfully in possession of the dead body of the donor shall, unless he
produces sufficient evidence before the registered medical practitioner to the effect that
the donor had subsequently revoked the authorization aforesaid, grant to a registered
medical practitioner all reasonable facilities for the removal, for therapeutic purposes, of
the eyes from the dead body of the donor.

(2) Where no such authorisation as is referred to in sub-section (1) was made

by any person before his death but no objection was also expressed by such person to
his eyes being used after his death for therapeutic purposes, the person lawfully in
possession of the body of the deceased person may, unless he has reason to believe that
any near relative of the deceased person has objection to the deceased person’s eyes
being used for therapeutic purposes, authorise the removal of the eyes of the deceased
person for their use for therapeutic purposes.

(3) The authority given under sub-section (1), or, as the case may be, under
sub-section (2), shall be sufficient warrant for the removal, for therapeutic purposes, of
the eyes from the body of the deceased person.

Removal of eyes not to be authorised in certain cases.

4. (1) No facilities shall be granted under sub-section (1) of section 3 and no

authority shall be given under sub-section (2) of that section for the removal of the eyes
from the body of a deceased person if the person required to grant such facilities or
empowered to give such authority, has reason to believe that an inquest may be
required to be held in relation to such body in pursuance of the provision of any law for
the time being in force.

(2) No authority for the removal of eyes from the body of a deceased person
shall be given by a person to whom such body has been entrusted solely for the purpose
of interment, cremation or other disposal.
 308

Authority for removal of eyes in case of unclaimed bodies in hospital or prison.

5. (1) In the case of a dead body lying in a hospital or prison and not claimed by
any of the near relatives of the deceased person, the authority for the removal of the
eyes from the dead body which so remains unclaimed may be given, subject to the
provisions of sub-section (2), in the prescribed form, by the person in-charge, for the
time being, of the management or control of the hospital or prison or by an employee of
such hospital or prison, authorised in this behalf by the person in-charge of the
management or control thereof.

(2) The authority referred to in sub-section (1) shall not be given except after
the expiry of such time as may be prescribed.

(3) No authority shall be given under sub section (1) if the person empowered
to give such authority has reason to believe that any near relative of the deceased is
likely to claim the dead body even though such near relative has not come forward to
claim the body of the deceased within the time specified.

Explanation:- For the purpose of this section. “hospital” includes a nursing home,
medical or teaching institution for therapeutic purposes or other like institution.

Authority for removal of eyes from bodies sent for post-mortem examination for
medico-legal or pathological purposes.

6. Where the body of a person has been sent for post-mortem examination:-

(a) for medico-legal purposes by reason of the death of such person having
been caused by accident or any other unnatural cause; or

(b) for pathological purposes,

the person competent under this Act to give authority for the removal of the eyes from
such dead body may, if he has reason to believe that the eyes will not be required for
the purpose for which such body has been sent for post-mortem examination, authorise
the removal for therapeutic purposes, of the eyes of such deceased person provided that
he is satisfied that the deceased person had not expressed, before his death, any
objection to his eyes being used for therapeutic purposes after his death or, where he
had granted an authority for the use of his eyes for therapeutic purposes after his death,
such authority had not been revoked by him before his death.
 309

Removal of eyes to be made by registered medical practitioner and in the presence of

police officer.

7. No removal of eyes under this Act shall be made,-

(i) by any person other than a registered medical practitioner who had
satisfied himself, before such removal, by a personal examination of the body from
which eyes are to be removed, that life is extinct in such body; and

(ii) except in the presence of a police officer not below the rank of a Sub-
Inspector of Police.

Preservation and deposit of eyes removed from dead bodies.

8. After the removal of the eyes from the body of a deceased person, the
registered medical practitioner shall take such steps as may be prescribed for the
preservation of the eyes so removed and deposit the same in such eye banks as may be
specified in the rules.
Saving.

9. (1) Nothing in the foregoing provisions of this Act shall be construed as

rendering unlawful any dealing with the body or with any part of the body of a
deceased person if such dealing would have been lawful if this Act had not been
passed.

(2) Neither the grant of any facility or authority for the removal of eyes from
the body of a deceased person in accordance with the provisions of this Act nor the
removal of eyes from the body of a deceased person in pursuance of such authority
shall be deemed to be an offence punishable under section 297 of the Indian Penal Code,
1860.
Protection of action taken in good faith.

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

Power to make rules.

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

(2) In particular and without prejudice to the generality of the foregoing

power, such rules may provide for all or any of the following matters, namely:—
 310

(a) the form in which removal of eyes, from unclaimed bodies may be
authorised, as required by section 5;

(b) the preservation of removed eyes, as required by section 8;

(c) the publicity which may be given to the provisions and objects of this Act;

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

(3) All rules made and all notifications issued under this Act shall, as soon as
possible after they are made or issued, be placed on the table of the Legislative
Assembly of the Union territory and shall be subject to such modifications by way of
amendment or repeal as the Legislative Assembly may make within fourteen days on
which the House actually sits either in the same session or in more than one session:

Provided however that any modifications or annulment shall not affect the
validity of anything already done and acted upon under such rules and notifications.

_____

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 11 OF 1988

Corneal grafting is quite often resorted to as therapeutic measure to cure

blindness. Persons enlivened by consciousness to provide relief to the blind come
forward to donate their eyes after their death for use for therapeutic purposes. It is
therefore necessary to vest necessary authority in the qualified registered medical
practitioners to remove the eyes of such donors after their death. It is also necessary to
vest such authority for removal of eyes in the case of unclaimed dead bodies in hospital
and prisons and also in certain circumstances from bodies sent for post-mortem
examination for medico-legal or pathological purposes. The eyes so removed have to be
deposited for preservation in the eye banks prescribed for the purpose.

The Bill seeks to achieve the above objects.

______
 311

THE PUDUCHERRY RELIEF FROM INDEBTEDNESS ACT, 1987

(Act No. 7 of 1989)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Discharge of Debt
4. Reconveyance of property
5. Constitution of Tribunals
6. Appointment of appellate authorities
7. Powers of Tribunal and appellate authority
8. Legal practitioners not to appear before Tribunals and appellate authorities
9. Burden of proof
10. Bar of jurisdiction of Civil Courts
11. Act to override other laws, contracts, etc.
12. Power to make rules

______
 312

THE PUDUCHERRY RELIEF FROM INDEBTEDNESS ACT, 1987

(Act No. 7 of 1989)
(24-6-1989)
AN
ACT

to provide relief from indebtedness to certain persons in the Union territory of

Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Thirty-eighth

Year of the Republic of India as follows: --

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Relief from Indebtedness Act, 1987.
(2) It extends to the whole of the Union territory of Puducherry.
* (3) It shall come into force at once.

Definitions

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

(1) "annul household income" means the aggregate of the gross income from all
sources of all the members of a family during the year ending on the 31st December,
1986;

(2) "appellate authority" means an appellate authority appointed under section 6;

(3) "creditor" means a person from or in respect of whom the debtor has
borrowed or incurred a debt and includes the heirs, legal representatives and assignees
of such person;

(4) "debt" means any liability in cash or kind, whether secured or unsecured due
from or incurred by a debtor on or before the date of the commencement of this Act,
whether payable under a contract or under a decree or order of any court, or otherwise,
and subsisting on that date, but does not include ---

* This Act has come into force w.e.f 24-6-1989.

 313

(a) any sum payable to -

(i) the Government of Union territory of Puducherry or the Government
of India or the Government of any other State or Union territory in India or any local
authority; or
(ii) a banking company as defined in the Banking Regulation Act, 1949
(Central Act No. 10 of 1949); or
(iii) scheduled banks as defined in the Reserve Bank of India Act, 1934
(Central Act 2 of 1934); or
(iv) the State Bank of India as constituted under the State Bank of India
Act, 1955 (Central Act No. 23 of 1955); or
(v) a subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959 (Central Act No. 38 of 1959); or
(vi) a corresponding new bank constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (Central Act No. 5 of 1970); or the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Central Act
No. 40 of 1980); or
(vii) the Industrial Development Bank of India established under the
Industrial Development Bank of India Act, 1964 (Central Act No. 18 of 1964); or
(viii) a Regional Rural Bank established under the Regional Rural Banks
Act, 1976 (Central Act No. 21 of 1976); or
(ix) the Export-Import Bank of India established under the Export-Import
Bank of India Act, 1981 (Central Act No. 28 of 1981); or
(x) the Industrial Finance Corporation of India established under the
Industrial Finance Corporation Act, 1948 (Central Act No. 15 of 1948); or
(xi) the State Financial Corporations established under the State Financial
Corporations Act, 1951 (Central Act No. 63 of 1951); or
(xii) the Industrial Reconstruction Bank of India established under the
Industrial Reconstruction Bank of India Act, 1984 (Central Act No. 62 of 1984); or
(xiii) the Agricultural Finance Corporation Limited a company
incorporated under the Companies Act, 1956 (Central Act No. 1 of 1956); or
(xiv) a Co-operative Bank as defined in clause (cci) of section 5 read with
section 56 of the Banking Regulation Act, 1949 (Central Act No. 10 of 1949), and Land
Development Bank or as the case may be, Land Mortgage Bank registered under any
law relating to co-operative societies for the time being in force in any State; or
(xv) a corporation owned or controlled by the Government or the
Government of any other State or Union territory or the Government of India or a
Government company as defined in the Companies Act, 1956 (Central Act No. 1 of
1956); or
(xvi) the Puducherry Housing Board constituted under the Puducherry
Housing Board Act, 1973 (Act No. 7 of 1974); or
(xvii) any co-operative society including a Land Mortgage Bank,
registered or deemed to be registered under the Puducherry Co-operative Societies Act,
1972 (Act No. 7 of 1973); or
 314

(b) any liability incurred or arising under any chit, the bye-laws or the
agreement of which has been registered under the Puducherry Chit Funds Act, 1966
(Act No. 18 of 1996), or the Chit Funds Act, 1982 (Central Act No. 40 of 1982); or
(c) any sum advanced for the purposes of Agriculture or Rural Development by
any institution receiving financial assistance from the National Bank for Agriculture
and Rural Development established under the National Bank for Agriculture and Rural
Development Act, 1981 (Central Act No. 61 of 1981); or
(d) any sum payable to any other financial institution notified in this behalf by
the Government in the Official Gazette; or
(e) any sum payable to any charitable endowment vested in any Treasurer of
Charitable Endowments, appointed under section 3 of the Charitable Endowments Act,
1890 (Central Act No. 6 of 1890); or
(f) any liability arising out of a breach of trust or any tortious liability; or
(g) any liability in respect of maintenance, whether under a decree of court or
otherwise; or
(h) any liability in respect of wages or remuneration due as salary or otherwise
for services rendered; or
(i) any debt which represents the price of property, whether movable or
immovable, purchased by a debtor or any amount due under a hire purchase
agreement; or
(j) any liability for which a charge is provided under sub-clause (b) of clause (4)
of section 55 of the Transfer of Property Act, 1882 (Central Act No. 4 of 1882); or
(k) any rent due in respect of any property including agricultural land let out to
a debtor; or
(l) any amount received by a debtor as advance for the delivery of goods at a
future date; or
(m) any debt or debts payable on the date of the commencement of this Act to –

(i) a widow; or
(ii) a minor child both of whose parents are dead; or
(iii) a minor child whose father is dead; or
(iv) a female person whose marriage has been dissolved by a decree of
divorce or has been declared null and void, or annulled by a decree of nullity:

Provided that, ---

(A) the market value of the property owned by such widow, minor child or
female person on the date of such commencement, including the principal amount of
the debt or debts so due, did not exceed twenty-five thousand rupees;
(B) the right of such widow, minor child or female person to recover the debt or
debts did not arise by reason of any assignment.
 315

Explanation. – For the purpose of this clause, the market value of the property
shall be estimated to be the price, which in the opinion of the authority prescribed in
this behalf, such property would have fetched if sold in the open market on the date of
the commencement of this Act;
(n) any amount due on account of any goods to a financier who financed the
purchase of such goods and whose principal business is to finance the purchase of
goods.
Explanation - I. – For the purpose of this clause, ---

(i) the liability of a surety who is a debtor shall be deemed to be a debt

within the meaning of this Act, notwithstanding that the principal debtor is not a debtor
for the purposes of this Act;
(ii) where a debt has been split up in any manner whatsoever, whether
before or after the commencement of this Act and fresh documents have been executed
in respect of different portions of the debt, each such different portion shall be a debt.

Explanation - II. – Where the debt is a liability in kind, the value of the
commodity shall be commuted at the market rate prevailing on the date on which the
debt was incurred;

(5) "debtor" means any person from whom any debt is due and whose annual
household income does not exceed four thousand and eight hundred rupees:

Provided that a person shall not be deemed to be a debtor, if he or any member

of his family ---

(i) has, in either of the two financial years, or in both the two financial
years immediately preceding the 1st day of April, 1987, been assessed to income-tax
under the Income Tax Act, 1961 (Central Act No. 43 of 1961), or under the income-tax
law in force in any foreign country; or
(ii) has, in either of the two financial years, or in both the two financial
years immediately preceding the 1st day of April, 1987, been assessed to sales tax under
the Puducherry General Sales Tax Act, 1967 (Act No. 6 of 1967), or under the Central
Sales Tax Act, 1956 (Central Act No. 74 of 1956); or

(iii) has, in any one or more within the four half years, or in all the four
half years, immediately preceding the commencement of this Act, been assessed to
property or house-tax in respect of buildings or lands other than agricultural lands,
under the Puducherry Municipalities Act, 1973 (Act No. 9 of 1973), and the Puducherry
Village and Commune Panchayats Act, 1973 (Act No. 10 of 1973), or any law governing
municipal or local bodies in any other State or Union territory in India, provided that
the aggregate annual rental value of such buildings and lands whether let out or in the
occupation of the owner is not less than one thousand and two hundred rupees.
 316

Explanation. – The annual rental value of any building or land for the purposes
of proviso (iii) shall, --

(1) where the assessment is based on the annual rental value, be deemed to be
such value;
(2) where the assessment is based on the capital value, be deemed to be five
per cent of the capital value; and
(3) in any other case, be deemed to be the value ascertained in the prescribed
manner; or

(iv) has, in any one or more within the four half years, or in all the four
half years, immediately preceding the commencement of this Act, been assessed to
profession tax on a half yearly income of more than one thousand and two hundred
rupees derived from a profession other than agriculture under the Puducherry
Municipalities Act, 1973 (Act No. 9 of 1973), and the Puducherry Village and Commune
Panchayats Act, 1973 (Act No. 10 of 1973), or any law governing municipal or local
bodies in any other State or Union territory in India.

Explanation. – Proviso (iv) shall apply only to a person whose annual

household income exceeds four thousand and eight hundred rupees and such person
shall not be deemed to be a debtor for the purposes of this Act; or

(v) whether individually or jointly owns in the Union territory of

Puducherry or elsewhere agricultural lands exceeding ten acres of unirrigated lands or
five acres of irrigated lands (whether irrigated from the Government source or a private
source).

Explanation. – Where any person owns both irrigated and unirrigated lands,
for the purpose of calculating under proviso (v), the extent of lands owned by him, one
acre of irrigated land shall be deemed to be equal to two acres of unirrigated land; or

(vi) whether individually or jointly owns in the Union territory of

Puducherry or elsewhere any other immovable property (other than agricultural lands),
the market value of which exceeds twenty-five thousand rupees; or

(vii) whether individually or jointly owns in the Union territory of

Puducherry or elsewhere both agricultural lands and other immovable property, the
market value of both such agricultural lands and other immovable property exceeds
twenty-five thousand rupees.
 317

Explanation. – For the purposes of provisos (vi) and (vii), the market value of
the immovable property or both the agricultural lands and other immovable property,
as the case may be, shall be estimated to be the price, which, in the opinion of the
authority authorised in this behalf, such immovable property or both the agricultural
lands and other immovable property, as the case may be, would have fetched if sold in
the open market on the date of commencement of this Act;

(6) "family" in relation to a person means the individual, the wife or husband,
as the case may be, of such individual, and their unmarried minor children;

Explanation. – For the purpose of this clause, "minor" means a person who has
not completed the age of eighteen years;

(7) "Government" means the Administrator appointed by the President under

article 239 of the Constitution;

(8) "interest" means any amount or other thing paid or payable in excess of the
principal amount borrowed or pecuniary obligation incurred; or where anything has
been borrowed in kind, in excess of what has been so borrowed, by whatever name
such amount or thing may be called, and whether the same is paid or payable entirely
in cash or entirely in kind or partly in cash and partly in kind and whether the same is
expressly mentioned or not in the document or contract, if any;

(9) "pay" with its grammatical variations, includes deliver;

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

(11) "principal amount" means the amount originally advanced together with
such sum, if any, as has been subsequently advanced, notwithstanding any stipulation
to treat any interest as principal and notwithstanding that the debt has been removed or
included in a fresh document, whether by the same debtor or by his heirs, legal
representatives or assigns or by any other person acting on his behalf or in his interest,
and whether in favour of the same creditor or his heirs, legal representatives or assigns
or of any other person acting on his behalf or in his interest;

(12) "Tribunal" means a Tribunal constituted under section 5.

Discharge of Debt

3.(1) Notwithstanding anything contained in the Puducherry Pawn Brokers Act, 1966
(Act No. 11 of 1966), the Puducherry Money Lenders Act, 1970 (Act No. 26 of 1970) and
the Tamil Nadu Debt Relief Act, 1976 (President’s Act No. 31 of 1976), as extended to
the Union territory of Puducherry or in any other law for the time being in force or in
 318

any contract or other instruments having force by virtue of any such law, or in any
decree or order of Court and save as otherwise expressly provided in this Act, and in
particular sub-section (2) with effect from the commencement of this Act,-

(a) every debt advanced or incurred before the date of commencement of this
Act (including interest, if any) and payable by the debtor to the creditor shall be
deemed to be wholly discharged;
(b) no Civil Court shall entertain any suit or other proceeding against the
debtor for the recovery of any amount of such debt (including interest, if any):

Provided that where any suit or other proceeding is instituted jointly against
the debtor and any other person, nothing in this section shall apply to the
maintainability of such suit or proceeding in so far as it relates to such other person;

(c) all suits and other proceedings (including appeals, revisions, attachments or
execution proceedings) pending on the date of commencement of this Act against any
debtor for the recovery of any such debt (including interest, if any), shall abate:

Provided that nothing in this clause shall apply to -

(i) the sale of any movable property held and concluded before the
commencement of this Act;
(ii) the sale of any immovable property confirmed before such
commencement;

(d) every debtor undergoing detention in a civil prison in execution of any

decree for money passed against him by a Civil Court in respect of any such debt
(including interest, in any), shall be released;

(e) every movable property pledged by a debtor shall stand released in favour
of such debtor and the creditor shall be bound to return the same to the debtor
forthwith;

(f) every mortgage executed by the debtor in favour of the creditor shall stand
redeemed and the mortgaged property shall be released in favour of such debtor.

Explanation. – I. In this section, the term "suit" shall not include a claim to a
set-off made in a suit instituted by a debtor.

Explanation. – II. For the purposes of this section, a suit in which a decree in
respect of a debt is prayed for shall be deemed to be a suit for the recovery of the debt
notwithstanding that other reliefs are prayed for in such suit, and a decree shall be
 319

deemed to be a decree in respect of a debt notwithstanding that other reliefs are granted
in such decree:

Provided that a suit or decree for possession of land shall not be deemed to be a
suit for recovery of or a decree in respect of a debt by reason merely of mesne profits
being also prayed for or included in such suit or decree.

Explanation. – III. Nothing in this section shall debar a decree holder from
enforcing reliefs other than in respect of a debt where the decree contains independent
reliefs.

Explanation. – IV. Nothing in this section shall be construed as entitling any

debtor to the refund of any part of any debt or interest thereon already repaid by him or
recovered from him before the commencement of this Act.

(2) Nothing contained in this Act shall apply to any debtor who is entitled to
the benefit of the Tamil Nadu Debt Relief Act, 1976 (President’s Act No. 31 of 1976), as
extended to the Union territory of Puducherry only in so far as any debt to which that
Act applies, is concerned.

Reconveyance of property

4. (1) (a) Any debtor entitled to the delivery of possession of any property under
clause (e) or clause (f) of sub-section (1) of section 3 or any other person on behalf of
such debtor may make an application in such form and containing such particulars as
may be prescribed to the Tribunal having jurisdiction over the area within six months
from the commencement of this Act or within such further period as may be notified by
the Government in this behalf, for such delivery of possession.

(b) Every such application shall be ---

(i) supported by an affidavit which shall be in such form and be sworn or

affirmed before such officer or authority as may be prescribed and
which shall state that the debtor is entitled to relief under section 3;
and
(ii) accompanied by a certificate from the prescribed authority as to the
annual household income of such debtor.

(c) where any debtor referred to in clause (e) or clause (f) of sub-section (1) of
section 3 or any other person on behalf of such debtor, has not made any application in
accordance with the provisions of, and within the time specified in this sub-section,
then, such debtor shall not be entitled to relief under this Act.
 320

(2) On receipt of an application under sub-section (1), the Tribunal shall make
necessary inquiries in respect of such application and if it is satisfied that the applicant
or the person on whose behalf the application has been made is entitled to the delivery
of possession of such property mentioned in the application, it shall, by order, direct the
person in possession of such property to deliver possession thereof to the applicant or
to the person on whose behalf the application has been made, within a period of thirty
days from the date of service of the order:

Provided that no order under this sub-section shall be made unless the person
in possession of the property has been given a reasonable opportunity of being heard.

(3) Every order made under sub-section (2) shall be served on the person for
whom it is intended, --

(a) by delivering or tendering it to that person; or

(b) if it cannot be delivered or tendered to that person, by delivering or
tendering it to any officer of such person or any adult member of the family of such
person or by affixing a copy thereof on the outer door or some conspicuous part of the
premises in which that person is known to have last resided or carried on business or
personally worked for gain; or
(c) failing service by any of these means, by registered post.

(4) Any person aggrieved by an order of the Tribunal under sub-section (2) may,
within a period of thirty days from the date of service of the order, prefer an appeal to
the appellate authority, having jurisdiction over the area and in such manner as may be
prescribed and in deciding the appeal, the appellate authority shall follow such
procedure as may be prescribed and the decision of the appellate authority on such
appeal shall be final and shall not be called in question in any court of law:

Provided that before taking a decision on the appeal, the appellate authority
shall give the opposite party an opportunity of being heard.

(5) Where an order under sub-section (2) has not been complied with, and –

(a) an appeal has not been preferred within the time allowed for such appeal;
or
(b) an appeal having been preferred, has been dismissed,

the Tribunal shall cause the property to which the order relates to be delivered to the
debtor by putting him in possession of that property.
 321

Constitution of Tribunals

5. (1) The Government may, by notification in the Official Gazette, constitute for,
such area as may be specified therein a Tribunal for the purpose of performing the
functions of a Tribunal under this Act.

(2) A Tribunal shall consist of a sole member who shall be an officer not below the
rank of Deputy Tahsildar appointed by the Government.

Appointment of appellate authorities

6. (1) The Government may, by notification in the Official Gazette, appoint for such
area as may be specified therein an appellate authority for the purposes of this Act.

(2) An appellate authority shall be an officer not below the rank of Deputy
Collector.
Powers of Tribunal and appellate authority

7. (1) Every Tribunal and every appellate authority shall have the powers of a Civil
Court while trying a suit under the Code of Civil Procedure, 1908 (Central Act No. 5 of
1908), in respect of the following matters, namely: -

(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) requiring the discovery and production of any document;
(c) any other matter which may be prescribed.

(2) The decisions of the Tribunals and the appellate authorities under this Act
shall have the force of a decree of a Civil Court.

Legal practitioners not to appear before Tribunals and appellate authorities

8. Notwithstanding anything contained in any law for the time being in force, no
legal practitioner shall be allowed to appear in any proceedings before a Tribunal or an
appellate authority under this Act.
Burden of proof

9. Notwithstanding anything contained in any law for the time being in force, in any
suit or other proceedings, the burden of proving that a debtor is not entitled to
protection under the provisions of this Act shall be on the creditor.
 322

Bar of jurisdiction of Civil Courts

10. No Civil Court shall have jurisdiction to decide or deal with any question or to
determine any matter which is, by or under the Act, required to be decided or dealt
with, or to be determined, by the Tribunal or the appellate authority.

Act to override other laws, contracts, etc.

11. The provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in the Code of Civil Procedure, 1908, or in any other
law for the time being in force or any custom, usage or contract, or any decree or order
of a court, tribunal or other authority.

Power to make rules

12.(1) The Government may, by notification in the Official Gazette, make rules for
carrying out the purposes of this Act.

(2) Every rule made under this Act shall be laid as soon as may be after it is
made, before the Legislative Assembly while it is in session, for a total period of
fourteen days which may be comprised in one session or in two successive sessions, and
if, before the expiry of the session in which it is so laid or the session immediately
following, the Legislative Assembly makes any modification in the rule or decides 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.
_______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.7 OF 1989

The question of bringing a comprehensive legislation providing relief from debt

burden to various categories of people was engaging the attention of this
Administration. After extensive study and careful examination of the debt relief laws
prevalent in the neighbouring States, it has been proposed to provide total discharge of
debt to debtors whose annual income does not exceed rupees four thousand and eight
hundred.

The Bill seeks to achieve the above object.

______
 323

THE PUDUCHERRY CO-OPERATIVE SOCIETIES (APPOINTMENT OF SPECIAL

OFFICERS) ACT, 1990

(Act No. 7 of 1990)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions

3. Term of office of members of committee or Board of scheduled co-operative societies

to expire on the appointed day
4. Appointment of special officers for scheduled co-operative societies
5. Co-operative Societies Act and rules made hereunder to apply to special officer
6. Delegation of powers of Government
7. Protection of action taken in good faith
8. Powers to amend Schedule

SCHEDULE

______
 324

THE PUDUCHERRY CO-OPERATIVE SOCIETIES (APPOINTMENT OF SPECIAL

OFFICERS) ACT, 1990

(Act No. 7 of 1990)

(06-11-1990)
AN
ACT

to provide for the appointment, in the public interest, of special officers for
certain co-operative societies in the Union territory of Puducherry.

WHEREAS it is expedient to provide for the appointment of special officers for

certain co-operative societies for a limited period in the public interest for the purpose
of safeguarding the interest of the members or depositors, for ensuring the proper
utilisation of the amounts invested by the Government and for improving the efficiency
of the administration of such societies.

BE it enacted by the Legislative Assembly of Puducherry in the Forty-first Year

of the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Co-operative Societies

(Appointment of Special Officers) Act, 1990.
(2) It extends to the whole of the Union territory of Puducherry.
+ (3) It shall come into force on such date as the Government may, by

notification in the official gazette, appoint.

Definitions

2. In this Act, unless the context otherwise requires, –

(a) "appointed day" means, –-
(i) in relation to any co-operative society included in the Schedule in the
first instance, the date appointed by the Government under sub-
section (3) of section 1 ; and
(ii) in relation to any other co-operative society, the date from which it is
included in the Schedule under sub-section (1) of section 8;
(b) "Co-operative Societies Act" means the Puducherry Co-operative Societies
Act, 1972;

+ This Act came into force w.e.f 08.11.1990 vide notification published in the EG. Pt-I No.154 dated 8.11.1990.
 325

(c) "Schedule" means the Schedule to this Act;

(d) "Scheduled co-operative society" means any co-operative society specified
in the Schedule and any other co-operative society included in that Schedule under
section 8;
(e) Words and expressions used and not defined in this Act but defined in the
Co-operative Societies Act shall have the meanings respectively assigned to them in that
Act.
Term of office of members of committee or Board of scheduled
co-operative societies to expire on the appointed day
3. Notwithstanding anything contained in the Co-operative Societies Act or in any
other law for the time being in force, the term of office of the members of the committee
or the Board, as the case may be or any person exercising the powers of such committee
or Board of every scheduled co-operative society including its president and vice-
president, or Chairman and vice-chairman, as the case may be, holding office as such
immediately before the appointed day shall expire on the appointed day and the
members shall vacate their office on and from such day.

Appointment of special officers for scheduled co-operative societies

4. (1) Notwithstanding anything contained in the Co-operative Societies Act or in
any other law for the time being in force, on and from the appointed day, the
Government shall appoint a person as special officer for each scheduled co-operative
society for such period or periods not exceeding two years in the aggregate as may be
specified by the Government from time to time.

(2) The special officer appointed under sub-section (1) shall, subject to the control
of the Registrar and to such directions as he may, from time to time give, have power to
exercise all or any of the functions of the committee or the Board, as the case may be, or
of any officer of the scheduled co-operative society and to take such action as may be
required in the interest of such scheduled co-operative society.

(3) The Government may fix the remuneration payable to the special officer
appointed under sub-section (1) and the amount of remuneration so fixed and such
other expenditure incidental to the management of the scheduled co-operative society
as may be approved by the Registrar, shall be payable from the funds of such scheduled
co-operative society.

(4) The special officer appointed under sub-section (1) shall arrange for the
constitution of a new committee or Board, as the case may be, in accordance with the
provisions of the Co-operative Societies Act and the rules made thereunder and the bye-
laws of the scheduled co-operative society so that the new committee or Board, as the
case may be, may be constituted and the members thereof come into office at the expiry
of the period of appointment of the special officer.
 326

Co-operative Societies Act and rules made hereunder

to apply to special officer
5. Except otherwise provided in section 4, the provisions of the Co-operative
Societies Act and the rules made thereunder shall apply in relation to a special officer
appointed under sub-section (1) of that section as they apply in relation to a special
officer appointed under sub-section (1) of section 83 of the Co-operative Societies Act.

Delegation of powers of Government

6. (1) The Government may, by notification, authorise the Registrar to exercise any
of the powers vested in it under section 4 in respect of any scheduled co-operative
society.

(2) The exercise of any power delegated under sub-section (1) shall be subject to
such restrictions and conditions as may be specified in the notification and subject also
to control and revision by the Government.

Protection of action taken in good faith

7. (1) No suit, prosecution or other legal proceedings shall lie against any person
for anything which is in good faith done or intended to be done in pursuance of this
Act.
(2) No suit or other legal proceedings shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done or
intended to be done in pursuance of this Act.

Powers to amend Schedule

8. (1) The Government may, by notification, from time to time, include in the
Schedule, any co-operative society registered under the Co-operative Societies Act.

(2) All references made in this Act to the Schedule shall be construed as
references to the said Schedule as for the time being amended in exercise of the powers
conferred by this section.

SCHEDULE
[See section 2 (d)]

1. The Puducherry Co-operative Milk Producers’ Union Limited. P.1.

2. The Puducherry State Co-operative Union Limited. P. 259.

______
 327

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 7 OF 1990

The co-operative societies at present are formed and managed under the
Puducherry Co-operative Societies Act, 1972. In spite of all the safeguards provided for
in the Act, it happens sometimes, in case of certain societies, that they fall into the hands
of persons who have little interest in the welfare of the society but who perpetuate
themselves in the office and mismanage the affairs of the society. Very often it has also
become necessary to secure the investments, if any, made by the Government in such
societies. With a view to ensure proper management of these societies, improve the
efficiency of their administration and for purpose of safeguarding the interest of the
members and depositors, it is proposed to bring about a legislation enabling the
Government to appoint special officers for such societies for a limited period of two
years with powers and functions of the committee or the Board or any officer of the
co-operative society.

This Bill seeks to achieve the above objects.

_______
 328

THE PUDUCHERRY DISTRICT PLANNING COMMITTEE ACT, 1994

(Act No. 6 of 1994)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Constitution and Composition of District Planning Committee
4. Functions of the District Planning Committee
5. Preparation of draft development plan by panchayats and municipal councils
6. Term of office
7. Transaction of business
8. Power of Government to make rules

______
 329

THE PUDUCHERRY DISTRICT PLANNING COMMITTEE ACT, 1994

(Act No. 6 of 1994)

(22-04-1994)
AN
ACT

to create and devolve powers upon the District Planning Committee to

consolidate the Plans prepared by the panchayats and the municipalities in the Union
territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Forty-fifth Year of

the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry District Planning Committee Act,
1994.
(2) It extends to the whole of the Union territory of Puducherry.
+(3) It shall come into force on such date as the Government may, by notification
in the Official Gazette, appoint.
Definitions

2. In this Act, unless the context otherwise requires, –

(1) "Committee" means the District Planning Committee constituted under

section 3;
(2) "District" means *[a revenue district;]
(3) "Government" means the Government of Puducherry;
(4) "Union territory" means the Union territory of Puducherry;
(5) words and expressions used herein and not defined but defined in the
Puducherry Municipalities Act, 1973 or, as the case may be, the Puducherry Village and
Commune Panchayats Act, 1973 shall have the meanings, respectively, assigned to them
in those Acts.

+ This Act came into force w.e.f 23.04.94 vide notification published in the EG Pt-II No.12 dt. 23.04.94.
* Substituted vide Act No.3 of 2007 w.e.f 10-3-2007 in Extraordinary Gazette Part –II No.10 dated 20th March 2007.
 330

Constitution and Composition of District Planning Committee

*[3. (1) The Government shall constitute in every district, a District Planning
Committee to consolidate the plans prepared by the Village Panchayats, Commune
Panchayat Councils and the Municipal Councils and to prepare a draft development
plan for the district as a whole.

(2) (a) The committee shall consist of not more that fifteen members
representing the following, namely: --

(i) such number of persons, not less than four-fifth as may be specified by
the Government, elected in the prescribed manner from amongst, the
elected members of Commune Panchayats and the Municipal Councils
in the district in proportion to the ratio between the population of the
rural areas and of the urban areas in the district;

(ii) Secretary to Government in-charge of the work relating to local self-

Government.

(iii) the Director, Local Administration Department, Government of

Puducherry;

(iv) the District Collector concerned, ex-officio.

(b) The following persons shall be permanent special invitees of the

committee: --

(i) the Member of the House of the People who represents the Union
territory of Puducherry.

(ii) the Member of the Council of States whose name is registered as an

elector in the Union territory of Puducherry.

(iii) not more than four members of the Legislative Assembly whose
constituencies lie within Puducherry district and not more than two members of the
Legislative Assembly whose constituencies lie within Karaikal district, as nominated,
from time to time by the Speaker:

* Substituted vide Act No.3 of 2007 w.e.f 10-3-2007 and published in Extraordinary Gazette Part –II No.10 dated 20th March 2007.
 331

Provided that where a Member of Parliament or a Member of the Legislative

Assembly of the Union territory is appointed as Minister or elected as Speaker or
Deputy Speaker or appointed as the Government Chief Whip or a recognised Leader of
the Opposition, he may nominate a person from the area he represents as member to
represent him in the committee of the district to which he was a permanent invitee;

(iv) the Chairpersons of the Commune Panchayat Councils in the district;

(v) the Chairpersons of the Municipal Councils in the district;
(vi) the Secretary to Government in-charge of the work relating to finance;
(vii) the Secretary to Government in-charge of the work relating to
planning;
(viii) such number of persons having special knowledge and experience in
matters relating to local self-Government, administration, planning
and other allied subjects, as nominated by the Government.

(c) The permanent special invitees referred to in clause (b) shall be entitled to
take part in the proceedings of the meetings of the committee.

(3) The Chief Minister of the Union territory of Puducherry shall be the ex-officio
Chairperson of the every District Planning Committee.

(4) The Director, Local Administration Department, Government of Puducherry

shall be the Secretary to every District Planning Committee].

Functions of the District Planning Committee

4. (1) The District Planning Committee shall ––

(i) consolidate the plans prepared by the commune panchayat councils

and municipal councils in the district and prepare a draft development
plan for the district as a whole;
(ii) in preparing the draft development plan, ––

(a) have regard to, ––

(i) matters of common interest between the panchayats and municipal

councils including co-ordinated spatial planning of the district, sharing
of water and other physical and natural resources, the integrated
development of infrastructure and environmental conservation;
(ii) the overall objectives and priorities fixed by the Government;
(iii) the extent and type of available resources, whether financial or
otherwise; and
 332

(b) consult such institutions and organisations as the Government may, by

order, specify.
(2) The Chairperson of the District Planning Committee shall forward the
development plans, as recommended by such Committee, to the Government.

Preparation of draft development plan by panchayats and

municipal councils
5. (1) Every village panchayat shall prepare every year a development plan and
submit it to the commune panchayat council before such date and in such manner as
may be prescribed.
(2) Every commune panchayat council shall prepare every year a
development plan of the commune panchayat after including the development plans of
the village panchayats and submit it to the District Planning Committee before such
date and in such form as may be prescribed.
(3) Every municipal council shall prepare every year a development plan of
the municipality and submit it to the District Planning Committee before such date and
in such form as may be prescribed.
Term of office
6. (1) The Committee shall continue for a term of five years from the date of its
Constitution, but the members shall hold office during the pleasure of the Government.
(2) A person shall cease to be a member of the Committee if he no longer
holds office by virtue of which he is a member of the Committee.

Transaction of business
7. The procedure for the transaction of business at the meetings of the Committee
shall be such as may be prescribed.

Power of Government to make rules

8. (1) Without prejudice to any power to make rules contained elsewhere in this
Act, the Government may, by notification, make rules to carry out all or any of the
purposes of this Act.
(2) Every rule made under this Act, shall, as soon as may be after it is made, be
laid before the Legislative Assembly of Puducherry while it is in session for a total
period of fourteen days which may be comprised in one session or in two or more
successive sessions and if before the expiry of the session in which it is so laid or the
sessions aforesaid, the Assembly makes any modification in the rule or decides 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.
______
 333

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.6 OF 1994

The Constitution (Seventy-third Amendment) Act, 1992 as well as the

Constitution (Seventy-fourth Amendment) Act, 1992 had been passed by the
Parliament.

2. These Constitution Amendments provide a clear and close relationship between

the development activities carried out by the local bodies namely, the municipalities as
well as the panchayats.

3. Accordingly it is also mandatory to constitute a District Planning Committee to

consolidate the plans prepared by the panchayats and municipalities in the Union
territory of Puducherry.

4. The bill enables the District Planning Committee to consolidate the plans
prepared by the panchayats and the municipalities and to prepare a development plan,
besides attending to the matters of common interest between the panchayats and the
municipalities in various activities like planning, sharing of water and natural
resources, etc.

5. The Bill seeks to achieve the aforesaid objects.

_____

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.3 OF 2007

In the Puducherry District Planning Committee Act, 1994, the expression "District"
in clause (2) of section 2 has been defined as the "whole of the Union territory of
Puducherry". At the time of enactment of the said Act, there was only one unitary
District viz., Puducherry in the Union territory of Puducherry comprising of four
regions, namely, Puducherry, Karaikal, Mahe and Yanam. But on 26-5-2005, the said
unitary District of Puducherry has been bifurcated into two districts namely, (i)
Puducherry District comprising of Puducherry region, Mahe region and Yanam region
and (ii) Karaikal District comprising of Karaikal region vide [Link]. No.37, dated 26-5-
2005 of the Confidential and Cabinet Department. Therefore, necessity has now arisen
to constitute two District Planning Committees-one in Puducherry District and the
other in Karaikal District. Hence, the expression "District" needs to be redefined as "a
revenue district" so as to enable to constitute one District Planning Committee in
Puducherry District and the other in Karaikal District.
 334

2. Sub-section (2) of section 3 of the said principal Act, provides for the
composition of the District Planning Committee. The erstwhile unitary District of
Puducherry in the Union territory of Puducherry has been bifurcated into two districts,
namely (i) Puducherry District and Karaikal District and it has been decided to fix the
strength of the members of the committee at 15 and also to revise the composition of
District Planning Committee by treating the Members of Parliament, Members of
Legislative Assembly, Chairpersons of Commune Panchayat Councils and Municipal
Councils, Secretary to Government (Finance), Secretary to Government (Planning) and
experts as nominated by the Government as permanent special invitees of the
Committee as was done in the neighbouring State of Tamil Nadu and Kerala.

3. Sub-section (3) of section 3 of the principal Act, provides for choosing the
chairperson of the District Planning Committee in such manner as may be prescribed.
But the District Planning Committee is a high level committee consisting of high profile
dignitaries viz., Members of Parliament, Members of Legislative Assembly, Secretaries
to Government and Collector of the District concerned besides, the Chairpersons and
elected members of local bodies, it is felt that it may cause difficulties and
embarrassment to choose the Chairperson. As the Chief Minister happens to be the vice-
chairperson of the State Planning Board, it has been considered that it would be more
appropriate in all respects, if he is the chairperson of every District Planning
Committee. Accordingly, it has been decided to make the Chief Minister as the ex-
officio Chairperson of every District Planning Committee.

4. Clause (1) of sub-section (2) of section 3 of the principal Act, provides to

designate the Director, Local Administration Department as the Member-Secretary of
the District Planning Committee. Now, it has been decided to redesignate him as the
Secretary of every District Planning Committee.

5. Section 2 and section 3 are, therefore, proposed to be substituted incorporating

the above-mentioned proposals.

6. The Bill seeks to achieve the above objectives.

_____
 335

THE PUDUCHERRY MEMBERS OF THE LEGISLATIVE ASSEMBLY

(PREVENTION OF DISQUALIFICATION) ACT, 1994

(Act No.13 of 1994)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title and commencement.

2. Definition.
3. Certain offices of profit not to disqualify.

SCHEDULE

_____
 336

THE PUDUCHERRY MEMBERS OF THE LEGISLATIVE ASSEMBLY

(PREVENTION OF DISQUALIFICATION) ACT, 1994

(Act No.13 of 1994)

[17-11-1994]
An
Act

to declare that certain offices of profit under the Government shall not disqualify
the holders thereof for being chosen as, or for being members of the Legislative
Assembly of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Forty-fifth Year

of the Republic of India as follows:-

(1) Short title and commencement

1. (1) This Act may be called the Puducherry Members of the Legislative Assembly
(Prevention of Disqualification) Act, 1994.

(2) It shall come into force at once.

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

(a) “compensatory allowance” means any sum of money payable to the

holder of an office by way of daily allowance, such allowance not exceeding the amount
of daily allowance to which a member of the Legislative Assembly is entitled under the
Salary, Allowances and Pension of Members of the Legislative Assembly (Puducherry)
Act, 1964 any conveyance allowance, house rent allowance or traveling allowance for
the purpose of enabling him to recoup any expenditure incurred by him in performing
the functions of that office;
(b) “ non-statutory body” means any body of persons other than a statutory
body;
(c) “ Schedule” means the Schedule appended to this Act; and
(d) “statutory body” means any corporation committee, commission, council,
board or other body of persons, whether incorporated or not, established by or under
any law for the time being in force.

3. Certain offices of profit not to disqualify

It is herby declared that none of the offices specified in the Schedule shall
disqualify the holder thereof for being chosen as, or for being a Member of the
Legislative Assembly of Puducherry.
 337

*[SCHEDULE
(see section 3)
The office of Chairman, President, Vice-Chairman, Vice-President, Director or
Member of any of the following statutory or non-statutory bodies, namely:-

[Link] BODIES:
1. Puducherry Market Committee. Registered under the Puducherry
2. Karaikal Market Committee. Agricultural Produce Markets
3. Yanam Market Committee. Act, 1973.

4. Puducherry State Social Welfare Board.

5. Puducherry Planning Authority.
[Link] Womens’s Commission.
7. Puducherry State Wakf Board.
8. Puducherry Ground Water Authority.
9. Puducherry Seed Certification Agency.
10. Puducherry Building and other Construction Workers Welfare Board.
[Link]:
1. Puducherry Adi-Dravidar Development Corporation Limited (PADCO).
2. Puducherry Agro Service and Industries Corporation Limited (PASIC).
3. Puducherry Agro Products Food and Civil Supplies Corporation Limited
(PAPSCO).

1. Puducherry Power Corporation Limited.

2. Puducherry Industrial Promotion Development and Investment Corporation
Limited (PIPDIC).
3. Puducherry Distilleries Limited.
4. Puducherry Electronics Limited.
5. Puducherry Textiles Corporation Limited.
6. Swadeshi ∕ Bharathi Textiles Corporation Limited.
7. Puducherry Backward Classes and Minorities Development Corporation Limited.
8. Puducherry Tourism Development Corporation Limited.
9. Puducherry Road Transport Corporation Limited.
[Link] Corporation for the Development of Women and Handicapped
Persons Limited.

C. SOCIETIES:
1. Pandit Jawaharlal Nehru College of Agriculture and Research Institute, Karaikal
(PAJANCOA & RI).

* Substituted vide Act No.5 of 2009 w.e.f 25.09.2009

 338

2. Perunthalaivar Kamarajar Krishi Vigyan Kendra, Puducherry.

3. Krishi Vigyan Kendra, Karaikal.
4. Puducherry Agricultural Workers Welfare Society.
5. Rajiv Gandhi College of Veterinary and Animal Sciences.
6. Bharathiar Palkalai Koodam.
7. Puducherry Institute of Linguistics and Culture.
8. Puducherry Experimental Solar Pond Power Project Society.
9. Fish Farmers Development Agency, Puducherry.
10. Fish Farmers Development Agency, Karaikal.
11. Fish Farmers Development Agency, Yanam.
12. Puducherry State Fishermen Co-operative Federation.
13. Fishing Harbour Management Society.
14. Mahatma Gandhi Post-graduate Institute of Dental Sciences.
15. Mother Therasa Post-graduate and Research Institute of Health Sciences.
16. Perunthalaivar Kamarajar Medical College and Research Institute.
17. Puducherry Medical Relief Society.
18. Puducherry Institute of Post-Matric Technical Education (PIPMATE).
19. Puducherry Engineering College.
20. Perunthalaivar Kamarajar Institute of Engineering and Technology, Karaikal.
21. Puducherry Society for Higher Secondary Education.
22. Puducherry Unorganised Labour Welfare Society.
23. Franco-Indian Vocational Training Institute Society.
25. Puducherry State Sports Council.
26. Rajiv Gandhi School of Sports.
27. Puducherry Society for the Care of the Aged (PONCARE).
28. Puducherry Institute of Hotel Management and Catering Technology.
29. Building Centre, Villianur, Puducherry.
30. Building Centre, Poovam, Karaikal.
31. Puducherry e-governance Society.
32. Puducherry Urban Development Agency.
33. District Institute of Education and Training.
[Link] Energy Agency of Puducherry.
35. Puducherry Building Centre.
36. Puducherry Council for Science and Technology.
37. Puducherry Fishermen Distress Relief Society.
38. District Rural Development Agency.
39. Puducherry Management and Productivity Council.
40. Puducherry AIDS Control Society.
41. Sainik Welfare Board:
Provided that the holder of any such office is not in receipt of, or entitled to, any
fee or remuneration other than compensatory allowance].
_______
 339

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 13 OF 1994.

The Legislative Assembly of Pondicherry has not so far enacted any separate law for
prevention of disqualification of the Members of the Legislative Assembly for their
appointment to some statutory and non-statutory bodies, which have been constituted by the
Government. The Government have established some corporations which have been registered
under the Companies Act and also some non-statutory Boards like the Pondicherry Legal Aid
and Advice Board. It is considered that some of the elected representatives may also be
appointed as Chairman or Vice-Chairman of the Board of Directors or Director or Members in
such Corporations and Boards and therefore such office might be included in the Schedule to
the said Bill, so that no disqualification shall be attracted.

2. It is proposed to include at present, the following bodies in the Schedule, namely :─

(a) The Pondicherry Distilleries Limited ;

(b) The Pondicherry Agro Service and Industries Corporation Limited ;
(c) The Pondicherry Agro Products, Food and Civil Supplies Corporation
Limited ;
(d) The Pondicherry Tourism and Transport Development Corporation Limited;
(e) The Pondicherry Adi Dravidar Development Corporation Limited; and
(f) The Pondicherry Legal Aid and Advice Board.

3. The Bill seeks to give effect to the above objects.

_________

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 5 OF 2009.

The Puducherry Members of the Legislative Assembly (Prevention of Disqualification)

Act, 1994 was enacted for the purpose of declaring that certain offices of profit under the
Government shall not disqualify the holders thereof for being chosen as, or for being Members
of the Legislative Assembly of Puducherry. By virtue of section 3 of the Act it has been declared
that none of the office specified in the Schedule shall disqualify the holders thereof for being
chosen as, or for being a Member of the Legislative Assembly of Puducherry. Thereafter, as and
when the necessity has arisen necessary amendment has been made to the Act for bringing a
certain office within the purview of the Schedule thereto.

Now, it has been proposed to bring all Government Societies, Corporations and
Statutory Bodies within the purview of the Schedule to the Act so as to protect any person
holding any office under the said Societies, Corporations and Statutory Bodies from being
disqualified for being chosen as, or for being a Member of the Legislative Assembly,
Puducherry. For the said purpose, it is proposed to amend the Act by substituting the Schedule
under section 3 therof.

The Bill seeks to achieve the above objects.

________
 340

THE PUDUCHERRY LIMITATION (REPEAL OF LOCAL LAWS) ACT, 1994

(Act No. 15 of 1994)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Repeal of the local laws relating to limitation
4. Savings
5. Provisions as to bar of pending suits

_______
 341

THE PUDUCHERRY LIMITATION (REPEAL OF LOCAL LAWS) ACT, 1994

(Act No. 15 of 1994)

(03-01-1995)
AN

ACT

to repeal the local laws relating to limitation in force in the Union territory of
Puducherry.

BE it enacted by the Legislative Assembly of the Union territory of Puducherry in

the Forty-fifth Year of the Republic of India as follows: --

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Limitation (Repeal of Local Laws) Act,
1994.

(2) It shall extend to the whole of the Union territory of Puducherry.

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

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

(i) "Government" means the Administrator appointed by the President

under article 239 of the Constitution; and

(ii) "local law" means any Act, Ordinance, Regulation, rule, order,
bye-law, decree or other provisions (by whatever name called) having
the force of law which have been continued to be in force by virtue of
sub-section (1) of section 4 of the Puducherry Administration Act,
1962.

+ This Act came into force w.e.f 01.03.1995 vide Notification published in the EG Pt-II No.16 dt. 28.02.1995.
 342

Repeal of the local laws relating to limitation

3. All local laws in force in the Union territory of Puducherry or any area thereof,
corresponding to the Limitation Act, 1963 (Central Act 31 of 1963) (hereinafter referred
to as the Limitation Act) shall stand repealed from the date of coming into force of this
Act.
Savings
4. Notwithstanding anything contained in this Act, --

(a) any suit for which the period of limitation prescribed in the Limitation Act
is shorter than the period of limitation prescribed by the local laws may be instituted ---

(i) within such shorter period or within a period of one year next after the
commencement of this Act, whichever is longer, or
(ii) within the period prescribed for such suit by the local laws,
whichever period expires earlier; and

(b) any appeal or application for which the period of limitation prescribed
under the Limitation Act is shorter than the period of limitation prescribed by the local
laws may be preferred or made,-
(i) within such shorter period or within a period of ninety days next after
the commencement of this Act, whichever is longer, or
(ii) within the period prescribed for such appeal or application by the local
laws,
whichever period expires earlier.

Provisions as to bar of pending suits

5. Nothing in this Act shall, --
(a) enable any suit, appeal or application to be instituted, preferred or made,
for which the period of limitation prescribed by the local laws expired before the
commencement of this Act; or
(b) after any suit, appeal or application instituted, preferred or made before,
and pending at, such commencement.

Explanation.- Any suit, appeal or application which has been filed but which has
been returned for resubmission after rectification of defects shall not, for the purposes
of the foregoing clause, by deemed to be a suit, appeal or as the case may be,
application instituted, preferred or made before and pending at the commencement of
this Act.

______
 343

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 15 OF 1994

The Indian Limitation Act, 1963, was enacted by the Parliament and brought into
force from 1-1-1964. The Act came into force in this Union territory from the above date
itself. In the meantime, even though, many of the substantive civil laws in force in the
other parts of the country were extended to the Union territory of Puducherry repealing
the corresponding French Law, the provisions relating to limitation in the French Law
like French Civil Code, Code Commercial, etc., have not been specifically repealed. In
the result, the French Law of Limitation continues to remain in force side by side with
the provisions of the Indian Limitation Act. This has created lot of confusion and this
has also unduly prolonged extinction of the causes of action arising from time to time.
The position has turned to be such that in one or two cases, the High Court has gone to
the extent of even declaring that the Indian Limitation Act has not been extended to
Puducherry. The ultimate result is that for every cause of action, the period of limitation
pleaded is 30 years. In view of this situation, it is proposed to repeal the French Law of
Limitation that remain in force as local law, so that our Union territory can fall in line
with the rest of the country in matters relating to law of limitation.

The Bill seeks to achieve the above objects.

_______
 344

THE PUDUCHERRY OPEN PLACES (PREVENTION OF DISFIGUREMENT)

ACT, 2000

(Act No. 6 of 2000)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions

3. No person to affix to or inscribe or exhibit on any place open to public view any
objectionable advertisement, etc.
4. Government to specify by notification any area where no person shall deface any
place open to public view
5. Penalty for disfigurement by objectionable advertisements
6. Penalty for unauthorised disfigurement by advertisements
7. Penalty for contravention of notification issued under section 4
8. Punishment of abettors
9. Burden of proof in certain cases
10 . Offences by companies
11. Offences under the Act to be cognizable
12 . Indemnity
13. Power of Government to erase writing, etc.,
14. Other laws not affected
15. Power to make rules

_____
 345

THE PUDUCHERRY OPEN PLACES (PREVENTION OF DISFIGUREMENT)

ACT, 2000

(Act No. 6 of 2000)

(20-12-2000)
AN
ACT

to prevent disfigurement by objectionable or unauthorized advertisements of

places open to public view in the Union territory of Puducherry.

Whereas it is expedient of prevent disfigurement by objectionable or

unauthorised advertisements of places open to public view in the Union territory of
Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-first Year of

the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Open Places (Prevention of
Disfigurement) Act, 2000.
(2) It extends to the whole of the Union territory of Puducherry.
+(3) It shall come into force at once.

Definitions

2. In this Act, unless the context otherwise requires, –

(a) "advertisement" includes an effigy or any bill, notice, document, paper or

other thing containing any words, signs or visible representations;

(b) "defacement" includes impairing or interfering with the appearance of

beauty, damaging, disfiguring, spoiling or injuring in any other way whatsoever and
the word "deface" shall be construed accordingly;

(c) "Government" means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the Constitution;

(d) "objectionable advertisement" means any advertisement which is likely to –

+ This Act came into force w.e.f 20.12.2000.

 346

(i) incite any person to commit murder, sabotage or any offence involving
violence; or
(ii) seduce any member of any of the armed forces of the Union or of the police
forces from his allegiance or his duty, or prejudice the recruiting of persons
to serve in any such force or prejudice the discipline of any such force; or
(iii) incite any section of the citizens of India to acts of violence against any
other section of the citizens of India; or which–
(iv) is deliberately intended to outrage the religious feelings of any class of the
citizens of India by insulting or blaspheming or profaning the religion or
the religious beliefs of that class; or
(v) is grossly indecent, or is scurrilous or obscene or intended for blackmail.

Explanation. – An advertisement shall not be deemed to be objectionable merely

because words or signs or visible representations are used –

(1) expressing disapprobation or criticism of any law or of any policy or

administrative action of the Government with a view to obtain its alteration or redress
by lawful means;

(2) criticising any social or religious practices without malicious intention and
with an honest view to promote social or religious reform or social justice;

(e) "place open to public view" includes any private place or building,
monument, statue, post, wall, fence, tree or other thing or contrivance visible to a
person being in, or passing along, any public place;

(f) "public place" means any place (including a road, street or way, whether a
thoroughfare or not and a landing place) to which the public are granted access or have
a right to resort, or over which they have a right to pass.

No person to affix to or inscribe or exhibit on any place open

to public view any objectionable advertisement, etc.

3. On and from the commencement of this Act, no person shall affix to, or inscribe or
exhibit on, any place open to public view, ––

(i) any objectionable advertisement; or

(ii) any advertisement without the written consent of the owner or occupier
or person in the management of the property in which such place is
situated.
 347

Government to specify by notification any area where no person shall deface any
place open to public view

4. Notwithstanding anything contained in this Act, or any other law for the time
being in force, the Government may, if satisfied, that it is necessary or expedient so to
do for purpose of preventing defacement, by notification in the official gazette, direct
that from such date and in such area as may be specified in the notification, no person
shall deface any place open to public view by writing or marking with ink, chalk, paint
or any other material except for the purpose of indicating the name and address of the
owner or occupier of such property and for such other purposes, as may be specified in
the said notification.

Penalty for disfigurement by objectionable advertisements

5. Whoever affixes to, or inscribes or exhibits on, any place open to public view any
objectionable advertisement shall be punished with imprisonment of either description
for a term which may extend to one year or with fine which may extend to one
thousand rupees or with both.

Penalty for unauthorised disfigurement by advertisements

6. Whoever affixes to, or inscribes or exhibits on, any place open to public view any
advertisement without the written consent of the owner or occupier or person in
management of the property in which such place is situated shall be punished with
imprisonment of either description for a term which may extend to three months or
with fine which may extend to two hundred rupees, or with both.

Penalty for contravention of notification issued under section 4

7. Whoever defaces any place open to public view in contravention of the
notification issued under section 4 shall be punishable for a term which may extend to
six months or with fine which may extend to one thousand rupees, or with both.

Punishment of abettors
8. Whoever in any manner whatsoever causes, procures, counsels, aids, abets or is
accessory to, the commission of any offence under section 3, section 4 or section 5, shall
be punished with the punishment provided for the offence.

Burden of proof in certain cases

9. Where a person is prosecuted for committing an offence under section 6, the
burden of proving that he has the written consent referred to in that section shall be on
him.
 348

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

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

(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 gross
negligence on the part of any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer of the company, shall also
be deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.

Explanation.– For the purpose of this section ––

(a) "company" means any body corporate and includes a firm or other
association of individuals; and
(b) "director" in relation to a firm, means a partner in the firm.

Offences under the Act to be cognizable

11. Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
any offence punishable under this Act shall be deemed to be a cognizable offence within
the meaning of that Code.
Indemnity
12. No suit, prosecution or other legal proceeding shall lie against the Government,
any local authority or person for anything which is in good faith done or intended to be
done under this Act.
Power of Government to erase writing, etc.,
13. (1) The Government or any officer authorised in this behalf may, by notice require
the owner or the person having control over any place open to public view, to erase any
writing, free any defacement or remove any mark from such place within such time as
may be specified in such notice.
 349

(2) If such erasing, freeing or, as the case may be removing is not carried out
within the time specified in the notice given under sub-section (1), the Government or
such authorised officer may cause such erasing, freeing or removing to be done and the
expenses incurred shall be paid by the owner or such other person and in default of
such payment, such expenses shall be recovered from such owner or such other person
as if they were arrears of land revenue.

Other laws not affected

14. The provisions of this Act, are in addition to, and not in derogation of, the
provisions of any other law for the time being in force.

Power to make rules

15. (1) The Government may, by notification, make rules to carry out the provisions
of this Act.
(2) All rules made and all notifications issued under this Act, shall, as soon as
possible after they are made or issued, be placed on the Table of the Legislative
Assembly of the Union Territory and shall be subject to such modification by way of
amendment or repeal as the Legislative Assembly may make within fourteen days on
which the House actually sits either in the same session or in more than one session:

Provided however that any modification or annulment shall not affect the
validity of anything already done and acted upon under such rules and notifications.
______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.6 OF 2000

Disfigurement and defacement of places open to public view have of late taken
menacing proportions. Besides causing nuisance they also spoil decent surroundings
and beauty of such places. Some State Governments and Union Territories have enacted
legislations to prevent defacement of properties. The Central Government and the
Election Commission of India have impressed on this Administration, the need for such
an enactment in this Union Territory to combat the growing menace of defacement of
places open to public view by indiscriminate writing and pasting of posters. It is
therefore necessary to bring about a legislation to prevent defacement of open places.

It is proposed to prohibit generally any objectionable advertisement or any

advertisement without the written consent of the owner or occupier on any place open
to public view. Power is also proposed to be vested in the Government to prohibit any
defacement of public place in any area. The offences under the legislation are
cognizable.
The Bill seeks to achieve the above objects.

________
 350

THE PUDUCHERRY COMPULSORY ELEMENTARY EDUCATION ACT, 2000

(Act No. 8 of 2001)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Elementary education to be compulsory
4. Duty of every parent or guardian of a child of school age
5. Exemptions
6. Competent authority
7. Penalty
8. Cognizance of offences
9. Competent authority etc., to be public servants
10. Power of Government to give directions
11. Protection of action taken in good faith
12. Power to make rules
13. Power to remove difficulties

______
 351

THE PUDUCHERRY COMPULSORY ELEMENTARY EDUCATION ACT, 2000

(Act No. 8 of 2001)

(05-10-2001)
AN ACT

to provide for compulsory elementary education in the Union territory of

Puducherry.
BE it enacted by the Legislative Assembly of Puducherry in the Fifty-first Year of
the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Compulsory Elementary Education
Act, 2000.
(2) It extends to the whole of the Union territory of Puducherry.
† (3) It shall come into force on such date as the Government may, by notification
in the official gazette appoint, and different dates may be appointed for different
provisions of this Act.

Definitions

2. In this Act, unless the context otherwise requires, –

(1) "attendance at an elementary school" means presence for instruction at an

elementary school for such number of days, and on such days in a year, and at such
time or times on each day of attendance, as may be prescribed;
(2) "competent authority" means the competent authority appointed by the
Government under section 6;
(3) "elementary education" means education in such subjects and up to such
standard as may be prescribed;
(4) "elementary school" means all schools, other than unaided private schools
recognised as an elementary school by the competent authority and includes any
elementary school in existence on the date of commencement of this Act which has been
recognised as such by the Director of Education or by any authority of the Education
Department;
(5)"Government" means the Administrator of the Union territory of Puducherry
appointed by the President under article 239 of the Constitution of India;
(6) "guardian" means any person to whom the care, nurture or custody of any
child falls by law or by natural right or by recognised usage, or who has accepted or
assumed the care, nurture or custody of any child or to whom the care, nurture or
custody of any child has been entrusted by any lawful authority;
† This Act has come into force w.e.f 01-01-2006 vide Notification published in the Gazette of Puducherry
No. 7 dated 14-02-2006
 352

(7) "parent" means the father or mother of a child and includes an adopted
father or mother;
(8) "school age" in relation to a child means six to fourteen years of age; and
(9) "year" means the academic year commencing on the 1st day of June.

Elementary education to be compulsory

3. (1) Subject to the provisions of this Act, elementary education shall be

compulsory for every child of school age.
(2) For giving effect to the provisions of sub-section (1), the Government shall
provide such number of elementary schools in the Union Territory with trained
teachers, as may be considered necessary.

Duty of every parent or guardian of a child of school age

4. It shall be the duty of every parent or guardian of a child of school age to cause
such child to attend an elementary school.

Exemptions
5. Attendance at an elementary school for a child of school age shall not be
compulsory, –
(1) if such child is prevented from attending an elementary school by reason
of sickness, infirmity or such other cause as may be prescribed;
(2) if such child is attending any unrecognised school provided that the
education imparted therein is declared to be satisfactory by the competent authority;
(3) if such child is imparted education under Non-formal Education
Programme;
(4) if such child is attending any other programme of alternative schooling at
the elementary level recognised by the competent authority; or
(5) if such child is exempted from attendance on any other ground as may be
prescribed.
Competent authority
6. (1) The Government, may, by notification, appoint any officer of the Education
Department, not below the rank of Chief Educational Officer, to be the competent
authority for the purpose of carrying into effect the provisions of this Act and the rules
made thereunder and different competent authorities may be appointed for different
areas.
(2) The competent authority shall exercise such powers and perform such other
functions as may be prescribed.
Penalty
7. Every parent or guardian of a child of school age who fails to discharge his duty
under section 4 shall be punishable with fine which may extend to one hundred rupees.
 353

Cognizance of offences
8. No court shall take cognizance of an offence punishable under this Act except on
a complaint in writing made by an officer authorised by the Government in this behalf
by general or special order.

Competent authority etc., to be public servants

9. The competent authority appointed under section 6 and the officer authorised
under section 8 shall be deemed to be public servants within the meaning of section 21
of the Indian Penal Code.

Power of Government to give directions

10. The Government may, in the public interest, by order, direct the competent
authority to make an enquiry or to take appropriate proceedings under this Act in any
case specified in the order, and the competent authority shall report to the Government,
the result of the enquiry made or the proceedings taken by him within such period as
may be prescribed.
Protection of action taken in good faith
11. No suit, prosecution or other legal proceedings shall lie against the
Government or an officer of the Government, for anything which is in good faith done
or intended to be done in pursuance of this Act or any rule or order made thereunder.

Power to make rules

12. (1) The Government may make rules to carry out all or any of the purposes of
this Act.
(2) Every rule made under this Act shall be laid, as soon as may be after it is
made, before the Legislative Assembly of Puducherry while it is in session for a total
period of fifteen 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 session aforesaid the Legislative Assembly agrees in making
any modification in the rule or agrees that the rules 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.

Power to remove difficulties

13. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, as occasion requires, by order published in the official gazette, make
such provisions, not inconsistent with the provisions of this Act, as appear to them to be
necessary or expedient for removing the difficulty:
Provided that no such orders shall be made after the expiry of a period of two
years from the date of commencement of this Act.
______
 354

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.8 OF 2001

As per the provisions of Article 45 of the Constitution of India, the state shall
endeavour to provide within a period of 10 years from the commencement of the
Constitution, for free and compulsory education for all children until they complete the
age of 14 years. A policy decision has been taken by the Government of Puducherry to
provide compulsory elementary education for all children of school age in this Union
territory. In order to give effect to that policy decision, it is necessary to make
elementary education compulsory for all such children. It is also necessary to make it
obligatory on the part of every parent or guardian of a child to cause the child to attend
elementary school. To achieve these objects, it is proposed to enact a law to make
elementary education in this Union territory compulsory.
This Bill seeks to achieve the above objects.
______
 355

THE PUDUCHERRY WOMEN’S COMMISSION ACT, 2001

(Act No. 2 of 2002)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Act not to apply in certain cases
4. Application of other laws not barred
5. Constitution of the Commission
6. Terms of office and conditions of service of members
7. Quorum
8. Disposal of business
9. Constitution of ad hoc Committees
10. Acts of the Commission not to be invalidated by infirmity or any vacancy, etc.
11. Removal of members from office
12. Appointment of Director and other staff of the Commission
13. Registration of women’s organisations
14. Powers of the Commission
15. Functions of the Commission
16. Grants by Government
17. Accounts and audit
18. Inquiry into unfair practices
19. Initiation of prosecution
20. Annual report to be laid before the Legislative Assembly
21. Sittings of the Commission
22. Authentication of orders, etc., of the Commission
23. Government consulting the Commission
24. Members, officers and employees of the Commission to be public servants
25. Protection of acts done in good faith
26. Courts not to grant injunctions
27. Removal of difficulties
28. Power to make rules

________
 356

THE PUDUCHERRY WOMEN’S COMMISSION ACT, 2001

(Act No. 2 of 2002)
(12-01-2002)
AN
ACT

to provide for the Constitution of a Women’s Commission to improve the status

of women in the Union territory of Puducherry and to enquire into unfair practices
affecting women and for matters connected therewith or incidental thereto.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-second Year

of the Republic of India as follows: -

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Women’s Commission Act, 2001.

(2) It extends to the whole of the Union territory of Puducherry.

+(3)
It shall come into force on such date as the Government may, by notification
in the Official gazette, appoint.

Definitions

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

(a) "Commission" means the Commission constituted under section 5;

(b) "Director" means the Director appointed under section 12;
(c) "Government" means the Administrator appointed by the President of
India under article 239 of the Constitution;
(d) "member" means a member of the Commission and includes the
Chairperson;
(e) "person" includes a firm, company, corporation or any public undertaking,
association of persons or the Government and its agencies including agencies receiving
aid from the Government;
(f) "prescribed" means prescribed by the rules made under this Act;

+ This Act has come into force w.e.f 05.10.04 vide [Link].35/2004-([Link]-IV) dt.05.10.04 published in the
Gaz. No.45 dt.09.11.04.
 357

(g) "public servant" means any employee of the Government or a local body
or any corporation owned or controlled by the Government or any Government Agency
or any public undertaking;
(h) "registered" means registered with the Commission under this Act;
(i) "unfair practice" means any distinction, exclusion or restriction made on
the basis of sex for the purpose of or which has the effect of impairing or nullifying the
recognition, enjoyment or exercise by women of fundamental constitutional rights, or of
human rights, or of fundamental freedom in the political, economic, social, cultural,
civil or any other field or the infringement of any right or benefit conferred on women
by or under the provisions of any law for the time being in force or the mental or
physical torture or sexual excesses on women.

Act not to apply in certain cases

3. This Act shall not apply to ––

(i) the Central Government, or

(ii) any public sector undertaking of the Central Government, or any
other institution owned or controlled or financed directly by the
Central Government:

Provided that if any case involving person or persons belonging to these

categories comes up before the Commission, the Commission will have the powers to
refer the matter to the National Commission with its findings and recommendations.

Application of other laws not barred

4. Save as otherwise provided, the provisions of this Act shall be in addition to and
not in derogation of, any other law for the time being in force, except to the extent the
provisions of the other law are inconsistent with the provisions of this Act.

Constitution of the Commission

5. (1) For the purpose of this Act, the Government shall, by notification in the
official gazette, constitute a Commission to be known as the Puducherry Women’s
Commission which shall consist of a Chairperson and not more than six other members
to be appointed by the Government provided that at least one member each shall be
from amongst persons belonging to the Scheduled Castes and the Scheduled Tribes
respectively.

(2) The Chairperson shall be an eminent woman committed to the cause of

women with sufficient knowledge and experience in dealing with women’s problems.
 358

(3) The members of the Commission shall be persons of ability, integrity,

intelligence and standing and having adequate knowledge or experience or have shown
ability in dealing with problems relating to safeguarding and promoting the interest of
women and protecting their rights.

Terms of office and conditions of service of members

6. (1) Every member including the Chairperson shall hold office for a period of three
years.
(2) Notwithstanding anything contained in sub-section (1), a member may ––
(i) by writing under his hand and addressed to the
government resign his office at any time;
(ii) be removed from his office in accordance with the
provisions of section 11.
(3) A vacancy arising by reason of resignation or removal of any member of the
Commission under sub-section (2) or otherwise shall be filled up in accordance with the
provisions contained in section 5:

Provided that a person so appointed shall hold office for the remaining period of
the term of the person in whose place such person is appointed.

(4) The remuneration payable to the members shall be fixed by the Government.

Quorum

7. The quorum for a meeting of the Commission shall be three.

Disposal of business

8. (1) The meeting of the Commission shall be presided over by the Chairperson or
in her absence a member chosen for the purpose by the members present.

(2) All questions at a meeting of the Commission shall be decided by the majority
of the votes, of the members present and voting and in case of equality of votes, the
Chairperson or the member presiding, as the case may be, shall have second or casting
vote.
(3) The Commission may invite, if it is considered necessary, for such purpose
and on such conditions as may be prescribed, any person with expert knowledge in a
particular subject to be present at the meeting to assist the Commission in arriving at a
decision, but such person shall not be entitled to vote.
 359

(4) In case the outlying regions are not properly represented in the Commission,
or if the Commission decides so, the Commission can constitute committees in the
outlying regions to help it to dispense with issues thereon, the Constitution of which
may be decided by the Commission.

Constitution of ad hoc Committees

9. (1) The Commission may for the purpose of transacting any business before it or
for any special issue constitute an ad hoc committee consisting of –

(a) not more than two members of the Commission;

(b) not more than two experts on the particular subject
before the Commission.

(2) If the Chairperson is a member of the committee, the Chairperson or any

other members shall preside over the meeting of the committee.
(3) The provisions of sections 7,8 and 21 shall mutatis mutandis apply to the
meetings of the committee.
(4) The final report of the ad hoc committee shall be placed before the
Commission for its approval and on the approval thereof by the Commission be
deemed to be the report of the Commission.
(5) The persons in the ad hoc committee shall be paid such remuneration as may
be prescribed.

Acts of the Commission not to be invalidated by infirmity or

any vacancy, etc.

10. No act or proceeding of the Commission shall be invalidated by reason only of

any defect or irregularity in its Constitution or on the ground of existence of any
vacancy in the office of any member.

Removal of members from office

11. Any member of the Commission may be removed from office by an order of the
Government, if she –

(a) becomes an undischarged insolvent;

(b) is convicted and sentenced to imprisonment for an offence which involves
moral turpitude;
(c) becomes of unsound mind;
(d) is without obtaining leave of absence from the Commission, absent from
three consecutive meetings of the Commission; or
 360

(e) in the opinion of the Government has so abused the position of Chairperson
or member as to render that person’s continuance in office detrimental to the public
interest:

Provided that a member shall not be removed under this section until that
person has been given a reasonable opportunity of being heard in the matter.

Appointment of Director and other staff of the Commission

12. (1) The Government may, in consultation with the Commission, appoint a
Director for making investigations for the purpose of this Act and to carry out such
directives given to him by the Commission besides the functions conferred on him by
this Act. The Government may appoint such other staff as may be necessary to assist the
Commission by deputation or by direct recruitment and prescribe their conditions of
service. A Law Officer may essentially be appointed.

(2) The qualifications, terms of appointment and other conditions of service of

the Director and other staff shall be such as may be prescribed.

(3) In the discharge of their functions under this Act, the Director and other staff
referred to in sub-section (1) shall be subject to the administrative control of the
Chairperson.

Registration of women’s organisations

13. (1) The Commission may register voluntary women’s organisations with the
Commission for the purpose of enlisting the assistance of such organisations in the
discharge of the functions of the Commission.

(2) Any women’s organisation governed by written rules, regulations or bye-

laws and working for the uplift, development, welfare or promotion of the interest of
women or women’s wing of any other organisation having all or any of the above
activities as one of the objectives may apply to the Director for registration of such
organisation with the Commission, in such form and in such manner as may be
prescribed.

(3) The Director shall verify the applications in such manner as may be
prescribed and recommend to the Commission, the organisations qualified for
registration and reject the other applications.
 361

(4) The Commission may consider the recommendations and direct that the
name and particulars of the organisations qualified to be registered be entered in the
register maintained for the purpose in the manner prescribed and shall issue a
certificate of registration in the prescribed form.

(5) The Commission may at any time, either on its own motion or otherwise
cancel the registration of any organisation after giving an opportunity to be heard and
on being satisfied that it is no longer qualified to continue as a registered organisation.

(6) The party aggrieved by the decision of the Director under sub-section (3) may
file an appeal before the Commission within such time and in such manner as may be
prescribed and thereupon the Commission shall after conducting such enquiry as it
deems fit and giving the party an opportunity of being heard, pass appropriate orders
thereon.

Powers of the Commission

14. (1) The Commission shall for the purpose of any inquiry under this Act, have the
same powers as are vested in a civil court while trying a suit under the Code of Civil
Procedure, 1908 in respect of the following matters, namely:-

(a) summoning and enforcing the attendance of any witness and examining
him;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavits;
(d) requisitioning any public records or copy thereof from any public office;
(d) issuing commissions for the examination of witnesses.

(2) Any proceeding before the Commission shall be deemed to be judicial

proceeding within the meaning of sections 193 and 228 of the Indian Penal Code and
the Commission shall be deemed to be a court for the purpose of section 195 of the Code
of Criminal Procedure, 1973.

Functions of the Commission

15. (1) The Commission shall perform all or any of the following functions, namely: -

(i) inquire into any unfair practice, take decision thereon and to
recommend to the Government the action to be taken in that matter;
(ii) cause investigations to be made by the Director on issues of
importance concerning women and issues concerning unfair practices and to report
thereon to the Government on the corrective measures to be taken;
(iii) submit to the Government annual reports on ––
 362

(a) the lacunae, inadequacies or short-comings in the laws in force which

affect the Constitutional right to equality and fair treatment of women and also on the
remedial legislative measures to be taken to meet the situation;

(b) the monitoring of the working of laws in force concerning women with a
view to identifying areas where the enforcement of laws is not adequately effective or
has not been streamlined and recommending executive or legislative measures to be
taken;

(c) monitoring the recruitments and promotions made within the Union
territory and scrutinizing the rules and regulations governing such recruitments and
promotions with a view to reporting to the Government action, if any, required to
guarantee equal opportunity to women in the matter of such recruitments and
promotions;

(iv) (a) inspect or cause to be inspected, by the Director or any officer of the
Commission authorised by the Commission in that behalf, prisons, police stations, lock-
ups, sub-jails, rescue homes or other places of custody where women are kept as
prisoners or otherwise, or shelters for women or other places run by the Government
for the purpose of offering rescue or shelter to women, or hostels intended for women
or girls run by any person and such other places wherein unfair practice to women is
complained of and cause further inquiries to be made about the treatment that women
and girls are subjected to at such places and to report to the Government for remedial
action;

(b) in cases where the Commission is of the view that any public servant has
been grossly negligent or grossly indifferent in regard to the discharge of his duties in
relation to the protection of interest of women, recommend to the concerned
disciplinary authority to initiate disciplinary action;

(v) recommend to Government, the welfare measures to be adopted

and implemented by the government with a view to ameliorating the conditions of
women;
(vi) formulate a comprehensive and affirmative scheme for securing
equal opportunities to women and devise a programme for implementing such scheme
which shall be forwarded to the Government for approval and on obtaining approval
thereof with or without modifications, implement the same;
(vii) empower the Director to recommend to the appropriate authority
to take prosecution proceedings in respect of offences committed against women under
any statute providing for penalty for violation of the provisions of such statute;
 363

(viii) maintain comprehensive data bank relating to the social,

economic and political conditions of the women including comparative study, updating
the same from time to time making available such data for use in actions for vindication
of the rights of women;
(ix) recommend to Government to initiate legislation for removal of
discrimination in the case of inheritance, guardianship, adoption or for matters relating
to the safeguarding of the dignity of women and the honor of motherhood;
(x) call for special studies or investigations into specific problems or
situations arising out of discrimination and atrocities against women and identify the
constraints so as to recommend strategies for their removal;
(xi) participate and advise on the planning process of socio-economic
development of women;
(xii) fund litigation involving issues affecting a large body of women;
(xiii) make periodical reports to the Government on any matter
pertaining to women and in particular various difficulties under which women toil;
(xiv) undertake promotional and educational research so as to suggest
ways of ensuring due representation of women in all spheres and identify factors
responsible for impeding their advancement such as, lack of access to housing and basic
services, inadequate support services and technologies, for reducing drudgery and
occupational health hazards and for increasing their productivity;
(xv) co-operate with and assist and seek co-operation and assistance of
the National Commission for Women and other Commissions for Women set up by
different State Governments and Union Territory Administrations and also the National
Commission for Scheduled Castes and Scheduled Tribes, National Commission for
Backward Classes and National Commission for Minorities;
(xvi) any other matter which may be referred to it by the Government.

(2) The Government shall cause all the recommendations or any part thereof, as
may be presented to it by the Commission under sub-section (1) which relate to any
matter with which the Government is concerned to be laid before the Legislative
Assembly of Puducherry along with a Memorandum explaining the action taken or
proposed to be taken on the recommendations of the Commission and the reasons for
non-acceptance, if any, of such recommendations.

Grants by Government

16. (1) The Government shall, after due appropriation made by the Legislative
Assembly by law in this behalf, pay to the Commission by way of grants such sums of
money as the Government may think fit for being utilised for the purpose of this Act.
(2) The Commission may spend such sums as it thinks fit for performing the
functions under this Act, and such sums shall be treated as expenditure payable out of
the grants referred to in sub-section (1).
 364

Accounts and audit

17. (1) The Commission shall maintain proper accounts and other relevant records
and prepare annual statements of accounts in such form as may be prescribed, in
consultation with the Accountant General, Puducherry and Tamil Nadu.

(2) The accounts of the Commission shall be audited by the Accountant-General,

Puducherry and Tamil Nadu, at such intervals as may be specified by him and any
expenditure incurred in connection with such audit shall be payable by the Commission
to the Accountant-General.

(3) The Accountant-General, Puducherry and Tamil Nadu and any person
appointed by him in connection with the audit of the accounts of the Commission under
this Act shall have the same rights and privileges and the authority in connection with
such audit of the Government accounts and in particular, shall have the right to
demand the production of books, accounts, connected vouchers and other documents
and papers and to inspect any of the offices of the Commission.

(4) The accounts of the Commission, as certified by the Accountant-General or

any other person appointed by him in this behalf together with the audit report thereon
shall be forwarded annually to the Government by the Commission.

Inquiry into unfair practices

18. (1) The Commission shall inquire into any unfair practice ––

(a) on receiving a written complaint from any woman alleging that she has
been subjected to any unfair practice or on a similar complaint from any registered
organization;
(b) on its own knowledge or information;
(c) on any request from the Government.

(2) Where the complaint has been made under clause (a) of sub-section (1), the
Commission may, before the issue of any process to the person complained against,
cause an investigation to be made by the Director in such manner as it may deem fit, for
the purpose of satisfying itself that the complaint requires to be inquired into.

(3) Where the person against whom the complaint has been made, appears and
shows cause or fails to appear on the day appointed for that purpose, the Commission
may proceed to inquire into the matter in the complaint and take a decision thereon and
if the Commission finds that there is unfair practice it shall recommend to the
Government the action to be taken thereon or initiate prosecution.
 365

(4) The Government shall, within two months from the date of receipt of the
recommendations of the Commission under sub-section (3) take a decision thereon and
intimate the same to the Commission.

Initiation of prosecution

19. If after investigation into any complaint under section 18, the Commission is
satisfied that a person has committed any criminal offence and that he should be
prosecuted in a court of law for such offence, then it may pass an order to that effect
and initiate prosecution of the person concerned, if there is no necessity for prior
sanction, and if prior sanction of any authority is required for such prosecution then
notwithstanding anything contained in any law, such sanction shall be granted by that
authority within thirty days of the request by the Commission and if such sanction is
not granted within the said period, such sanction shall be deemed to have been granted
by that authority.

Annual report to be laid before the Legislative Assembly

20. The Annual Report submitted to the Government by the Commission in

accordance with clause (iii) of sub-section (1) of section 15 shall be laid, before the
Legislative Assembly, as soon as may be, after the report is received by the
Government.
Sittings of the Commission

21. (1) The Commission shall hold sittings ordinarily at Puducherry to inquire into
any unfair practice but it may hold sittings in any other region of the Union Territory or
in Puducherry.

(2) The Commission shall with the previous approval of the Government make
regulations for regulating its procedure and the disposal of its business and which
regulations shall, after they are made, be published in the official gazette.

(3) The Chairperson may, with the approval of the Commission, assign any
function of the Chairperson or of the Commission to any other member or members of
the Commission.

Authentication of orders, etc., of the Commission

22. All orders and decisions of all other proceedings or instruments, if any, issued by
the Commission shall be authenticated by the signature of the Director or of such other
officer as may be authorised by the Commission in this behalf.
 366

Government consulting the Commission

23. The Government shall consult the Commission on all major policy matters
affecting women.

Members, officers and employees of the Commission to be

public servants

24. All members, officers and other employees of the Commission shall be deemed,
when acting or purporting to act in pursuance of any of the provisions of this Act to be
public servants within the meaning of section 21 of Indian Penal Code.

Protection of acts done in good faith

25. No suit, prosecution or other legal proceedings shall lie against any member of
the Commission or any officer of the Commission for anything done in good faith or
intended to be done under this Act or rule made thereunder.

Courts not to grant injunctions

26. Notwithstanding anything contained in the Code of Civil Procedure, 1908 or any
other law for the time being in force, no court shall grant any injunction restraining any
proceeding which is being or about to be taken under the provisions of this Act.

Removal of difficulties

27. (1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order, do anything not inconsistent with such provisions to
remove such difficulty.
(2) No order under sub-section (1) shall be made after the expiration of a period
of two years from the commencement of this Act.
(3) Every order made under this section shall, as soon as may be after it is made,
be laid before the Legislative Assembly of Puducherry.

Power to make rules

28. (1) The Government may, by notification in the official gazette, make rules for
the purpose of carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing powers,
such rules may provide for –
 367

(a) the remuneration payable to the members;

(b) procedure for removal of the members of the Commission under section
11;
(c) the procedure for registration under section 13 of the Act;
(d) procedure for inquiries under section 18 of the Act;
(e) investigations by the Director;
(f) procedure for inspection of prisons, police stations, lock-ups, sub-jails,
rescue homes or other places of custody where women are kept as prisoners or
otherwise or shelters for women or other places run by the Government or any of its
agencies including agencies receiving aid from the Government for the purpose of
offering rescue or shelter to women or hostels intended for women or girls run by any
person and such other places, wherein unfair practice to women or girls is complained
of or for holding of enquiries about the treatment that women or girls are subjected to at
such place;
(g) maintaining a data bank;
(h) the formulation of a comprehensive and affirmative scheme for securing
equal opportunity to women and for improvement and uplift of women and
programme for its implementation;
(i) procedure for recommending prosecution in respect of offences
committed against women under any statute;
(j) any other matter which has to be, or may be prescribed.
(3) Every rule made under this Act shall be laid, as soon as may be after it is made,
before the Legislative Assembly, while it is in session, for a total period of 14 days
which may be comprised in one session or in two successive sessions and if before the
expiry of the session in which it is so laid or the session immediately following the
Legislative Assembly makes any modification in the rule or decides that the rule should
not be made, the rule shall thereafter have effect, only in such modified form or be of no
effect, or 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.
_______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.2 OF 2002

As early as in 1997, the National Commission for Women, New Delhi, had
requested this Union Territory Administration to set up a State Commission for Women
in the Union Territory for the purpose of helping the women and for redressed of their
grievances in the Union Territory. To achieve the above, the draft legislation titled "The
Puducherry Women’s Commission Bill" has been prepared and for which the prior
approval of the Government of India has been obtained for introduction in the
Legislative Assembly. The Bill as such seeks to provide for the constitution of a
Women’s Commission to improve the status of women in the Union Territory to
enquire into unfair practices affecting women and for matters connected therewith.
The Bill seeks to achieve the above objects.
_______
 368

THE PUDUCHERRY GROUND WATER (CONTROL AND REGULATION)

ACT, 2002

(Act No. 2 of 2003)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Establishment of a Ground Water Authority
4. Staff of the Ground Water Authority
5. Powers of Government to issue directions and powers to notify areas for control and
regulation of ground water development
6. Grant of permit to extract and use ground water in the notified area
7. Registration of existing users in notified areas
8. Registration of user of new wells in non-notified area
9. Power to alter, amend or vary the terms of the permit
10. Prohibition of carrying on the business of sinking wells in a notified area
11. Grant of licence for sinking of wells
12. Cancellation of permit, certificate of registration or licence
13. Powers of the Ground Water Authority
14. Restriction on publication on information and returns
15. Service of orders, etc.,
16. Delegation of powers
17. Members and employees of the Ground Water Authority to be public servants
18. Protection against action taken in good faith
19. Cognizance and trial of offences
20. Offences and penalties
21. Compounding of offences
22. Offences by companies
23. Appeals
24. Bar of jurisdiction of civil courts
25. Power to make rules

___________
 369

THE PUDUCHERRY GROUND WATER (CONTROL AND REGULATION)

ACT, 2002

(Act No. 2 of 2003)

(23-01-2003)
AN
ACT

to regulate and control the development of ground water and for matters
connected therewith.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-third Year

of the Republic of India as follows:-

Short tile, extent and commencement

1. (1) This Act may be called the Puducherry Ground Water (Control and Regulation)
Act, 2002.
(2) It shall extend to the whole of the Union Territory of Puducherry.
+(3) It shall come into force on such date as the Government may, by notification in
the official gazette, appoint and different dates may be appointed for different areas in
the Union Territory of Puducherry.
Definitions

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

(a) "Authority" means Ground Water Authority established in accordance with
section 3 of the Act;

(b) "Government" means the Administrator of the Union Territory of

Puducherry appointed by the President under article 239 of the Constitution;

(c) "Ground water" means the water which exists below the surface of the
ground at any particular location in any land;

(d) "Notified area" means any area which this Act applies;

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

+ This Act came into force w.e.f 15.09.2003 vide Notification published in the EG Pt-I No.104 dt 15.09.2003.
 370

(f) "Sink" with all its grammatical variations and cognate expression in relation
to a well includes any digging, drilling or boring of new wells or deepening carried to
the existing wells;

(g) "User of ground water" means the person or persons or an institution

including a company or an establishment, whether Government or not, who or which
use ground water for any purpose including domestic use made either on a personal or
community basis or industrial use;

(h) "Well" means a well sunk for the search or extraction of ground water by a
person or persons except by the authorized officials of the Union Territory of
Puducherry for carrying out scientific investigations, exploration, development or
management work for the survey and assessment of ground water resources or for
providing water for irrigation and includes open well, dug well, borewell, dug-cum-
borewell, tubewell, filter point, collector well and infiltration gallery:

Provided that it will exclude the person or persons who use ground water
drawn from a well by manual devices, e.g., hand pump or rope and bucket.

Establishment of a Ground Water Authority

3. (1) The Government shall, by notification in the official gazette, establish with
effect from such date as may be specified in the notification, an authority to be known
as Ground Water Authority.
(2) The Ground Water Authority shall consist of –

(a) a Chairman to be appointed by the Government:

(b) five official members of the departments of the Government dealing with
survey, exploration, development, management and protection of ground water, to be
appointed by the Government; and
(c) three non-official members who, in the opinion of the Government, have
special knowledge or practical experience in matters relating to ground water, to be
appointed by the Government.

(3) The term of office and the manner of filling the vacancies and other conditions
of service of the Chairman and other members shall be in such manner as may be
prescribed.
Staff of the Ground Water Authority

4. (1) The Government may, for the purpose of enabling the Ground Water Authority
to perform its function efficiently or exercise its powers under the Act, appoint such
number of technical personnel and other staff as it may consider necessary.
 371

(2) The functions and the terms and conditions of service of such employees shall
be such as may be prescribed.

Powers of Government to issue directions and powers to notify areas for control and
regulation of ground water development

5. (1) The Government may from time to time, issue to the Ground Water Authority
such directions as it may think necessary in the public interest.
(2) Without prejudice to the foregoing provisions, the Ground Water Authority
shall, in exercise of its powers or the performance of its functions, be bound by such
directions on questions of policy as the Government may give in writing to it from time
to time;

Provided that the Ground Water Authority shall, as far as practicable, be given
an opportunity to express its views before any direction is given under this sub-section.

(3) The decision of the Government whether a question is one of policy or not
shall be final.

(4) If the Ground Water Authority is of the opinion that it is necessary or

expedient in the public interest to control and/or regulate the extraction or the use or
both of ground water in any form in any area, it will advise the Government to declare
any such area to be a notified area for the purposes of this Act with effect from such
date as may be specified therein. This declaration will be notified in the official gazette:

Provided that the date so specified in the notification shall not be earlier than
three months from the date of publication of the said notification.

(5) Every such notification shall, in addition to its publication in the official
gazette, be published in not less than one daily regional language newspaper having
wide circulation in the respective regions of the Union Territory of Puducherry and
shall also be served in such manner as the Government may think fit and all or any of
the following modes may be followed in effecting such service, namely:-

(a) by affixing a copy of the notification to some conspicuous part of the offices
of the village panchayats located in the said area; or

(b) by proclaiming by beat of drum or by means of loudspeakers, the contents

of the notification in the said area; or

(c) in such other manner as may be prescribed.

 372

(6) If in the opinion of the Authority, the availability of the ground water has
improved in a notified area based on satellite imageries or any report of the remote
sensing applications in the country under the umbrella of National Natural Resources
Management System or any other report published by the Government of India or other
State Government or Union Territory, the Authority may advise the Government to
identify such area and the Government may do so according to the procedure
prescribed in this section for notifying the area.

Grant of permit to extract and use ground water in the notified area

6. (1) Any user of ground water [as defined under sub-section (g) of section 2]
desiring to sink a well in the notified area for any purpose either on personal or
community basis, shall apply to the Ground Water Authority for grant of a permit for
this purpose, and shall not proceed with any activity connected with such sinking
unless a permit has been granted by the Ground Water Authority:

Provided that the person or persons will not have to obtain a permit if the well
is proposed to be fitted with a hand operated manual pump or water is proposed to be
withdrawn by manual devices.

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

(3) On receipt of an application under sub-section (1), if the Ground Water

Authority is satisfied that it shall not be against public interest to do so, it may grant,
subject to such conditions and restrictions as may be specified, a permit authorising the
extraction and use of ground water:

Provided that no person shall be refused a permit, unless he has been given an
opportunity of being heard.

(4) The decision regarding the grant or refusal of the permit shall be intimated by
the Ground Water Authority to the applicant within a period of 30 days from the date
of receipt of the application.

(5) In granting or refusing a permit under sub-section (3), the Ground Water
Authority shall have regard to, -

(a) the purpose or purposes for which ground water is to be used;

(b) the existence of other competitive users;
(c) the availability of ground water;
 373

(d) quality of ground water with reference to use;

(e) spacing of ground water structures keeping in consideration the
purpose for which ground water is to be used;
(f) long-term ground water level behaviour;
(g) quantity of ground water utilized with reference to land use in the
area; and
(h) any other factors relevant thereto.

(6) The permit shall be in such form as may be prescribed.

Registration of existing users in notified areas

7. (1) Every existing user of ground water in the notified area shall within a period
of one hundred and twenty days from the date specified in the notification under sub-
section (4) of section 5, apply to the Ground Water Authority for the grant of a
certificate of registration recognising its existing use in such form and in such manner
as may be prescribed;

Provided that the Ground Water Authority may entertain any such application
after the expiry of the said period of one hundred and twenty days, if it is satisfied that
the user was prevented by sufficient cause from filing application in time.

(2) The details to be furnished in an application under sub-section (1) shall

include the following, namely:-

(i) the description of the source of ground water, such as type of

well, its exact location;
(ii) the device used for lifting water;
(iii) the quantity of ground water withdrawn and hours of
operation per day;
(iv) the total period of use in each year;
(v) the purpose or purposes for which ground water is being
extracted;
(vi) in case of irrigation well, the location and extent of area
irrigated;
(vii) in the case of water supply, schemes undertaken by the
Government or other local authorities, the details of services
involved in addition to the quantities of ground water
extracted. The diversion or the pumping points and their
locations; and
(viii) in the case of industries, the details such as daily water
requirement for various purposes, type of well structure,
lifting device used, etc.
 374

(3) On receipt of an application under sub-section (1), if the Ground Water

Authority is satisfied that it shall not be against the public interest to do so, it may
grant, subject to such conditions and restrictions as may be specified, a certificate of
registration authorising the continued use of ground water:

Provided that no person shall be refused a certificate of registration unless he

has been given an opportunity of being heard.

(4) The decision regarding the grant or refusal of the certificate of registration
shall be intimated by the Ground Water Authority to the applicant within a period of
thirty days from the date of receipt of the application.

(5) In granting or refusing a certificate of registration under sub-section (3), the

Ground Water Authority shall have regard to, -

(a) the purpose or purposes for which ground water is to be used;

(b) the existence of other competitive users;
(c) the availability of ground water;
(d) quality of ground water with reference to use;
(e) spacing of ground water structures keeping in consideration the purpose
for which ground water is to be used;
(f) long-term ground water level behaviour;
(g) quantity of ground water utilised with reference to land use in the area;
and
(h) any other factors relevant thereto.

(6) The certificate of registration shall be in such form as may be prescribed.

(7) Pending the communication by the Ground Water Authority of the decision
on an application under sub-section (1), every existing user of ground water in the
notified area shall be entitled to the continued use of ground water in the same manner
and to the same quantity as he was entitled prior to the date of his application.

(8) If a registered well becomes defunct, this fact should be immediately brought
to the notice of the Ground Water Authority by the user of ground water.

Registration of user of new wells in non-notified area

8. (1) All wells sunk in the Union Territory of Puducherry shall have to be registered
including the areas not notified under section 5 of the Act;

Provided that the person or persons who use the ground water drawn from a
well by manual devices, e.g., hand pumps, rope and bucket, etc., shall be excluded.
 375

(2) The Provisions of sub-section (8) of section 7 shall also be applicable in the
case of wells sunk in non-notified areas.

Power to alter, amend or vary the terms of the permit

9. At any time after a permit or certificate of registration, as the case may be has been
granted, the Ground Water Authority may, for technical reasons, alter, amend or vary
the terms of the permit or certificate of registration, as the case my be:
Provided that the user of ground water has been given an opportunity of being
heard:
Provided further that before taking such action, the Ground Water Authority
shall ensure that the standing crops are not damaged.

Prohibition of carrying on the business of sinking wells in a notified area

10. No person, either by himself or by any other person acting on his behalf shall,
after six months of the enforcement of the Act, carry on the work of sinking of wells or
extraction of ground water or any other activity connected with the sinking of wells
and/or extraction of ground water in any notified area, except in accordance with a
licence granted in this behalf.

Grant of licence for sinking of wells

11. (1) Any person desiring to carry on the business of sinking of wells and/or
installation of devices for extraction of ground water in a notified area, may make an
application to the Ground Water Authority for the purpose.

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

(3) On receipt of an application under sub-section (1), the Ground Water

Authority may, after such enquiry as it deems fit and after satisfying itself that the
person concerned has the means and the knowledge to undertake sinking operations
and/or extracting of ground water, grant a licence in such form as may be prescribed
and subject to such conditions as may be specified therein.

Cancellation of permit, certificate of registration or licence

12. If the Ground Water Authority is satisfied either on a reference made to it in this
behalf or otherwise, that,-

(a) the permit or certificate of registration or the licence granted under

sub-section (3) of section 6, or sub-section (3) of section 7, or sub-section (3) of section
11, as the case may be, has been obtained by fraud or misrepresentation of facts, or
 376

(b) the holder of the permit or certificate of registration or licence has without
reasonable cause failed to comply with the conditions subject to which the permit or
certificate of registration or licence has been granted or has contravened any of the
provisions of this Act or the rules made thereunder, or

(c) a situation has arisen which warrants limiting of the use of extraction of
ground water, then, without prejudice to any other penalty to which the holder of the
permit or the certificate of registration or licence may be liable under this Act, the
Ground Water Authority may, after giving the holder of the permit, certificate of
registration or licence, as the case may be, an opportunity to show-cause, cancel the
permit, certificate of registration or licence.

Powers of the Ground Water Authority

13.(1) The Ground Water Authority or any person authorized by it in writing in this
behalf shall have power,-

(a) to enter on any property (private or Government owned) with the right to
investigate and make any measurement concerning the land or the water located on the
surface or underground;
(b) to inspect the well which has been or is being sunk and the soils and other
materials excavated therefrom;
(c) to take specimens of such soils or other materials or of water extracted
from such wells;
(d) to inspect and to take copies of the relevant records or documents and ask
any question necessary for obtaining any information (including diameter or depth of
the well which is being or has been sunk, the level at which ground water is or was
struck and subsequently restored or rested, the types of strata encountered in the
sinking of the well and the quality of ground water struck) required for carrying out the
purposes of this Act;
(e) to serve or cause to be served a notice requiring any user of ground water
other than for agricultural use to furnish such information or returns in such form, at
such intervals and with such particulars, as may be prescribed and thereupon such
person shall comply with such requisition;
(f) to require the user of ground water other than for agricultural use to
install water measuring device on any ground water supplies, when necessary, to
properly administer the ground water or where there is reason to believe that the user
does not comply with the provisions contained in this Act or for any other sufficient
reason for defending the public interest:
Provided that where the user of ground water does not comply with the
requisition issued to him within a period of thirty days, the Ground Water Authority
 377

itself may install such water measuring device and recover the cost from the defaulting
user of ground water;

(g) to seize any equipment/device utilised for illegal sinking and destroy the
work executed fully or partly;

(h) to require any user of ground water, who does not comply with the
provisions of this Act and rules framed thereunder, to close down any water supply or
destroy any hydraulic work:

Provided that where the user of ground water does not comply with the
requisition issued to him within a period of sixty days, the Ground Water Authority
itself may carry out the necessary work and recover the cost form the illegal user of
ground water;

(i) to enter and search with such assistance, if any, as it considers necessary,
any place in which it has reason to believe that offence under this Act has been or is
being committed and order, in writing, the person, who has been or is committing the
offence, not to extract or use the ground water for a specified period not exceeding
thirty days; and

(j) to exercise such other powers as may be necessary for carrying out the
purposes of this Act or any rules made thereunder.

(2) The power conferred by this section includes the power to break open the
door of any premises where sinking, extraction and use of ground water may be going
on:

Provided that the power to break open the door shall be exercised only after
the owner or any other person in occupation of the premises, if he is present therein,
refuses to open the door on being called to do so.

(3) The provisions of the Code of Central Criminal Procedure, 1973 (Central Act 2
of 1974) shall, so far as may be, apply to any search or seizure under this section as they
apply to any search or seizure made under the authority of a warrant issued under
section 93 of the said code.

(4) Where the Ground Water Authority seizes any mechanical equipment/device
under clause (g) of sub-section (1), it shall, as soon as may be, inform a Magistrate and
take his orders as to the custody thereof.
 378

Restriction on publication on information and returns

14. Any user of ground water may give notice in writing to the Ground Water
Authority to treat as confidential, any specimen taken under clause (c) of sub-section (1)
of section 13 or any other information or return furnished by him under clause (e) of
sub-section (1) of that section and thereupon the Ground Water Authority shall not
allow that specimen or other information or return, except in so far as it contains or
affords information as to water resources and supplies and geological conditions, to be
published or shown to any person (not being an officer of the Government), unless the
person giving the notice consents thereto.

Service of orders, etc.,

15.(1) Every order under clause (d) of sub-section (1) of section 13 and every notice
under clause (e) of sub-section (1) of that section shall be served,-

(a) by giving or tendering the order of notice or by sending it by post to the

user for whom it is intended; or
(b) if such user cannot be found, by affixing the order of notice on some
conspicuous part of his last known abode or place of business or by giving or tendering
the order of notice to some adult male member or servant of his family or by causing it
to be affixed on some conspicuous part of the land or building in which the well is
being sunk.

(2) Where the person on whom an order or a notice is to be served is a minor,

service upon his guardian in the manner provided in sub-section (1) shall be deemed to
be service upon the minor.
Delegation of powers

16. The Ground Water Authority may, by general or special order in writing, direct
that all or any of the powers or duties which may be exercised or discharged by it shall,
in such circumstances and under such conditions, if any, as may be specified in its
order, be exercised or discharged also by an employee of the Ground Water Authority
as may be specified in this behalf in the order.

Members and employees of the Ground Water Authority

to be public servants

17. All members and employees of the Ground Water Authority shall, when acting
or purporting to act in pursuance of the provisions of this Act, or of any rules made
thereunder, be deemed to be public servants within the meaning of section 21 of the
Indian Penal Code (Central Act 45 of 1860).
 379

Protection against action taken in good faith

18. No prosecution, suit or other legal proceeding shall be instituted against the
Government or the Ground Water Authority or any other Officer of the Government or
any member of other employees of the Ground Water Authority for anything done or
intended to be done in good faith under this Act, or the rules made thereunder.

Cognizance and trial of offences

19. (1) No prosecution for an offence under this Act shall be instituted except by or
with the written consent of the Ground Water Authority or a person authorised in this
behalf by the Ground Water Authority.

(2) No court inferior to that of a Judicial Magistrate of the First Class shall try any
offence under this Act.
Offences and penalties

20. (a) If any user having been required to furnish any information or return under
clause (e) of sub-section (1) of section 13,-

(i) wilfully refuses or without lawful excuse, neglects to furnish such

information or return, or
(ii) wilfully furnishes or causes to be furnished any information or return,
which he knows to be false,

he shall be punishable, -

(i) for the first offence with fine, which may extend to five hundred
rupees; and
(ii) for the second and subsequent offence, with fine which may extend to
one thousand rupees;

(b) If any user, -

(i) contravenes or fails to comply with any of the provisions of this Act or
any rule made thereunder, or
(ii) obstructs the Ground Water Authority or any other person authorised
by it to exercise any of the powers under this Act,

he shall be punishable, --
 380

(i) for the first offence with fine which may extend to five thousand
rupees; and
(ii) for the second and subsequent offence, with imprisonment for a term
which may extend to six months, or with fine which may extend to ten
thousand rupees, or with both.
Compounding of offences
21. Any offence under this Act as may be prescribed, may, before or after the
institution of the proceedings, be compounded by the Ground Water Authority.

Offences by companies
22.(1) Whenever an offence under this Act has been committed by a company, every
person who at the time, the offence is committed was in-charge of , or was responsible
to the company for the conduct of the business of the company, as well as the company,
shall be deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where an offence
under this Act has been committed by a company 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 offences 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 under this Act, if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent the commission
of such offence.

Explanation.- For the purpose of this section,-

(a) "Company" means any body corporate and includes a firm or other
association of individuals; and
(b) "Director" in relation to a firm, means a partner in the firm.

Appeals

23. (1) Any person aggrieved by a decision or action of the Ground Water Authority
under this Act may, within a period of thirty days from the date on which the action is
taken or the decision is communicated to him and on payment of such fees as may be
prescribed, prefer an appeal to such authority as may be specified by the Government
in this behalf:
 381

Provided that the appellate authority may entertain an appeal after the expiry
of the said period of thirty days, if it is satisfied that the applicant was prevented by
sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate authority shall,
after giving the appellant an opportunity of being heard, dispose of the appeal within
three months from the date of receipt of the appeal petition.

Bar of jurisdiction of civil courts

24. No civil Court shall have jurisdiction in respect of any matter which the
Government or the Ground Water Authority is empowered by this Act to determine
and no injunction shall be granted by any court or any other authority in respect of any
action taken or to be taken in pursuance of any powers conferred by or under this Act.

Power to make rules

25.(1) The 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 manner of filling vacancies and other conditions of
service among the members and Chairman of the Ground Water Authority;
(b) the functions and the terms and conditions of service of the employees of
the Ground Water Authority;
(c) any other manner of effecting service of the notification under clause (c) of
sub-section (5) of section 5;
(d) the form of application under sub-section (2) of section 6 and sub-section
(2) of section 11 and the particulars that may be furnished with these applications;
(e) the form of application under section 7;
(f) fees to accompany the application for licence under sub-section (2) of
section 11;
(g) the form of the permit and certificate of registration under sub-section (6)
of section 6 and sub-section (6) of section 7 and the conditions/restrictions that may be
specified therein;
(h) the form of licence under sub-section (3) of section 11 and the condition
that may be specified therein;
(i) the form in which and the interval at which the information or return
under clause (e) of sub-section (1) of section 13 shall be furnished and the particulars
with such information or return shall contain;
 382

(j) specifying the appellate authority under sub-section (1) of section 23 and
the fees to accompany the application for appeal;
(k) any other matter which is required to be or may be prescribed.

(3) Every rule made under this section shall be laid, as soon as may be after it is
made, before the Legislative Assembly while it is in session for a total period of fifteen
days, which may be comprised in one session or in two or more successive sessions, and
if before the expiry of the session in which it is so laid or the session immediately
following, or the successive sessions aforesaid, the House agrees in making any
modification in the rule or the House agrees that the rule should not be made, the rule
thereafter shall 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 done earlier under that rule.
______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 2 OF 2003

In the early Sixties, irrigation was mainly carried out through major tanks and
small ponds. But of late, due to inadequate receipt of monsoon and improper
functioning of the system structure, the area commanded by tanks and ponds has
declined drastically.

2. The water level was between six to eight metres below the ground level in the
early Seventies and there were only about four thousand service connections. Due to
the ever increasing demand for agriculture besides industry, education, housing, etc.,
the dependency on ground water has increased considerably. As a result of this, now
the water level in the tube-wells has declined to twenty to fifty, metres below ground
level. The decline in water level has been further aggravated by the large-scale
installation of deep well submersible pump in place of centrifugal ones for augmenting
lift irrigation. Sea water intrusion has also been noticed along the coast. This is a
dangerous situation and if left uncontrolled, it will lead to further advance of sea water
towards inland and ultimate dissertation of the region.

3. The proposed legislation prohibits sinking of tubewells without prior

permission of the competent authority. Provision has also been made for taking penal
action against those who violate the provisions of the Act.

4. By undertaking this legislation, over exploitation of ground water can be

checked, controlled and regulated.

5. This Bill seeks to achieve the above objects.

_______
 383

THE PUDUCHERRY BOARD OF SECONDARY AND HIGHER SECONDARY

EDUCATION ACT, 2003

(Act No. 8 of 2004)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER - I

1. Short title, extent and commencement

2. Definitions
CHAPTER - II

3. Establishment and incorporation of the Board

4. Jurisdiction
5. Aims of the Board
6. Powers and duties of the Board
CHAPTER – III
7. Officers of the Board
8. Chairman and Vice-Chairman of the Board
9. Powers and duties of the Chairman
10. Appointment, duties and powers of Secretary, Under Secretary and Assistant
Secretary
11. Appointment of other officers and servants of the Board

CHAPTER – IV
12. Authorities of Board
13. Board
14. Term of office and allowances of members of Board
15. Disqualification of Chairman, Vice-Chairman and members
16. Resignation of members
17. Removal of Chairman, Vice-Chairman and member
18. Vacancy of Chairman, Vice-Chairman or member
19. Casual vacancies
20. Acts and proceedings
21. Meetings of the Board
22. Power to invite experts and officers at meetings
23. The Executive Council
24. Duties and functions of the Executive Council
25. The Academic Council
26. Duties and functions of the Academic Council
 384

27. The Finance Committee

28. Duties and functions of the Finance Committee
29. The Examination Committee
30. Duties and functions of the Examination Committee
31. The Affiliation Committee
32. Duties and functions of the Affiliation Committee
33. Board or Boards of Studies
34. Duties and functions of Board of Studies
35. Other Board authorities and committees
CHAPTER – V
Finance, Annual Accounts and Annual Report

36. Board’s Fund, custody and investment

37. Procedure for withdrawal of Board’s Fund
38. Annual Accounts and Financial Estimates
39. Annual Report
CHAPTER – VI
Miscellaneous Provisions

40. Submission of students by affiliated institutions or otherwise for examinations to be

conducted by the Board
41. Conditions of service
42. Acting Chairman of the meetings
43. Question regarding interpretation and disputes regarding Constitution of Board’s
authority or body, etc
44. Protection of acts and orders
45. Power of Government to make rules
46. Power to make regulations
47. First Regulations
48. Information, returns, etc., to be provided by the Board
49. Powers of Government to issue directions
50. Transitional provisions
51. Government’s interpretation to be final

_____
 385

THE PUDUCHERRY BOARD OF SECONDARY AND HIGHER SECONDARY

EDUCATION ACT, 2003

(Act No. 8 of 2004)

(01-12-2004)
AN

ACT

to establish a Board of Secondary and Higher Secondary Education and matters

connected therewith.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-fourth Year of

the Republic of India as follows:-

CHAPTER - I
Short title, extent and commencement

1. (1) This Act may be called the Puducherry Board of Secondary and Higher
Secondary Education Act, 2003.

(2) It extends to the whole of the Union territory of Puducherry.

† (3) This section shall come into force at once; and the remaining provisions of this
Act shall come into force on such dates as the Government may, by notification appoint;
and different dates may be appointed for different provisions of this Act and reference
to the provision thereof shall be construed as a reference to the date on which that
provision comes into force.
Definitions
2. In this Act, unless the context otherwise requires,-

(1) "Affiliation" means formal enrolment of a school into the list of approved
schools of the Board for the purpose of admission to the privileges of the Board
including its examination;

(2) "Appointed day" means the date or dates on which the remaining provisions
of the Act are brought into force under sub-section (3) of section 1;

(3) "Board" means the Board established under the Act;

(4) "Chairman of the Board" means the person appointed as Chairman of the Board
constituted under the Act;
† The provisions of section 2 to 49 and 51 of the Act came into force with effect from 01-05-2006 vide
Notification published in the Gazette of Puducherry No.6 dated 07-02-2006
 386

(5) "Director of School Education" means the Director of School Education,

Puducherry and includes any other officer authorised by him to perform all or any of
the functions of the Director under this Act;

(6) "Directorate of School Education" means Directorate of School Education,

Government of Puducherry;

(7) "Final examination" means the Secondary School Leaving Examination or the
Higher Secondary Course Certificate Examination or such other examinations as may
be conducted or caused to be conducted by the Board;

(8) "Government" means the Administrator or the Union Territory of Puducherry

appointed by the President of India under article 239 of the Constitution;

(9) "Headmaster" means the person incharge of the academic administration of a

high school affiliated to the Board as such;

(10) "Higher Secondary Education" means such general, technical, vocational or

special education (including any combined course thereof) which is designed to meet
the educational needs of the period of adolescence and which follows, immediately the
secondary education and precedes immediately the stage of education controlled by the
University leading to grant of Bachelor’s Degree but does not include such technical
education as immediately follows secondary education, and affiliated to such
educational authorities as are dealing exclusively with technical education and leading
to grant of diplomas;

(11) "High School" means a school affiliated as such to the Board under clause (1)
of section 6;

(12) "Higher Secondary School" means a school affiliated as such to the Board
under clause (1) of section 6;

(13) "Institution" means an academic institution imparting secondary or higher

secondary education or such other courses of education as are approved or dealt by the
Board;

(14) "Prescribed" means prescribed by rules and regulations made under this Act;

(15) "Primary education" means education imparted in a primary school

recognised as such by the Government;

(16) "Principal" means the person incharge of the academic administration of a

higher secondary school affiliated to the Board as such;
 387

(17) "Regulation" means regulation made by the Government under section 47 and
by the Board under section 46 of the Act;

(18) "Secondary education" means such general, technical, vocational or special

education (including any combined courses thereof) which is designed to meet the
educational needs of the period of adolescence and which follows, immediately the
primary education and precedes immediately higher secondary education;

(19) "Teacher" means a member of the teaching staff other than the Headmaster of
a high school or Principal of a higher secondary school affiliated as such to the Board;

(20) "Territory" means the Union Territory of Puducherry;

(21) "Text-book" in relation to an examination under this Act means any book
recommended or otherwise sanctioned by the Board for use in that examination.

CHAPTER - II

Establishment and incorporation of the Board

3. (1) The Government shall by notification in the Official Gazette, establish a Board
for the territory by the name of “the Puducherry Board of Secondary and Higher
Secondary Education”

(2) The Board shall be a body corporate by the name mentioned in sub-section (1)
and shall have a perpetual succession and a common seal, and shall have power to
acquire, hold and dispose of property and to enter into contracts, and may by the said
name sue and be sued.

(3) The Board shall be open to persons of either sex and of whatever race, creed,
caste or class and it shall not be lawful for the Board to adopt or impose on any person,
any test whatsoever of religious belief or profession in order to entitle him to be
admitted to its privileges, as a teacher or student or to hold any office therein, or to
receive certificate thereof:

Provided that nothing in this section shall be deemed to prevent the Board
from making special provisions for weaker sections of the people and, in particular, of
the Scheduled Castes and Scheduled Tribes.

(4) French nationals of Indian origin who have been permitted long-term
residence in the Territory under the provisions of Treaty of Cession shall also be eligible
for admission to the privileges of the Board.
 388

Explanation.- Treaty of Cession has the meaning assigned to it in the

Puducherry (Administration) Act, 1962 (Central Act 49 of 1962).

Jurisdiction

4. (1) The jurisdiction of the Board shall extend to the whole of Union territory of
Puducherry.

(2) Any institution admitted to the privileges of the Board shall cease to be
associated with, or be admitted to the privileges of, any other Board.

(3) No institution situated within the local limits of the jurisdiction of the Board,
but not admitted to its privileges shall be associated with, or be admitted to the
privileges of, any other Board except with the previous approval of the Government.

Aims of the Board

5. The aims of the Board shall be to provide secondary and higher secondary and
such other courses of education as it may deem necessary to provide and, for this
purpose grant affiliation to the required number of such schools in the territory; to pay
special attention to the improvement of the secondary and higher secondary education
and such other courses of education as it may deem necessary to do, so that it meets the
required needs and standards of economic and social development; to provide adequate
facilities for educational and professional advancement of socially and educationally
backward communities; to take such steps and such measures as may lead to
intellectual, academic, physical and cultural development of the youth.

Powers and duties of the Board

6. Subject to conditions as may be prescribed and subject to such directions as may

be issued by the Government from time to time, the Board shall have the following
powers and perform the following duties, namely:-

(1) to grant and withdraw affiliation to the secondary and higher secondary
schools, and such other institutions;

(2) to advise the Government on matters of policy relating to secondary and

higher secondary education in general and on the following matters in particular :-

(a) ensuring a uniform pattern of education;

(b) maintenance of a uniform standard of education in secondary and higher

secondary schools;
 389

(c) co-ordination between the national policies and the policies of the Territory
in respect of secondary and higher secondary education;
(d)co-ordination between primary, secondary, higher secondary and university
education;

(3) to lay down guiding principles regarding curricula and syllabi for the entire
secondary and higher secondary and such other courses as it may deem fit and to
prescribe courses of instruction and to prepare the detailed syllabi for all standards of
secondary and higher secondary education and such other courses as it may deem fit;

(4) to promote learning through French medium of instruction and take all
necessary action in this regard;

(5) to formulate general principles for recommending text-books for sanction by

the Board, and to sanction such text-books subject to such conditions, as it may deem fit
to impose;

(6) to advise the Government in standard requirements in respect of staff,

buildings, furniture, equipments, stationery and other amenities required for secondary
and higher secondary schools and such other institutions;

(7) to prescribe and prepare text-books for all standards of secondary and higher
secondary education;

(8) to conduct or caused to be conducted final examinations as the Board may

deem fit, based on such courses as may be prescribed;

(9) to prescribe conditions for admission of regular and private candidates to the
final examinations and such other examinations as may be conducted or caused to be
conducted by the Board;

(10) to demand and receive payment of fees and other charges as may be
prescribed from time to time;

(11) to grant, subject to such conditions as the Board may determine, diplomas or
certificates to, and confer other academic distinctions on the basis of examinations,
evaluation or any other method of testing, on persons an to withdraw any such
diplomas, certificates or other academic distinctions for good and sufficient cause;

(12) to institute and award scholarships, stipends, medals, prizes and other
rewards and to prescribe conditions therefor and prepare a list of eligible candidates
according to merit for this purpose;
 390

(13) to receive bequests, donations, endowments, trusts and other transfers of any
property or interest therein, or right thereto;

(14) to hold any property, interest or right referred to in clause (13) above, and to
manage and deal with the same;

(15) to apply for and receive grants;

(16) to appoint paper-setters, translators, examiners, moderators, supervisors,

evaluators, invigilators and other necessary personnel for conducting final
examinations in the Territory or such other examinations as may be conducted final
examinations in the Territory or such other examinations as may be conducted by the
Board, for evaluation of candidates’ performance and for compiling and release of
results and also to consider disqualification of all such categories of persons on the
recommendation of Examination Committee and Executive Council;

(17) to open centers for the final examinations or such other examinations as are
conducted or caused to be conducted by it;

(18) to declare the results of the candidates at the final examinations or such other
examinations as are conducted or caused to be conducted by it;

(19) to regulate and enforce discipline among the employees of the Board and
candidates appearing at the various examinations conducted or caused to be conducted
by it;
(20) to lay down procedures to deal with cases of use of unfair means in the
examinations and to prescribe penalties in such cases;

(21) to generally evaluate performance of students in all examinations in

secondary and higher secondary schools including the final examinations and such
other examinations conducted by it and make, from time to time, necessary
recommendations in respect of the same to the Government;

(22) to lay down the manner in which affiliation would be granted to or

withdrawn from institutions;

(23) to call for any information from secondary and higher secondary schools and
to call for special reports and information from the Director of School Education
generally and in particular in the matter of withdrawal of affiliation in cases of
secondary schools and higher secondary schools which show poor academic results or
commit grave or persistent academic or financial irregularities;
 391

(24) to require institutions affiliated to it and the Department of Education to

extend their co-operation in the conduct of final examinations or such other
examinations as may be conducted or caused to be conducted by it;

(25) to recommend measures to promote intellectual, physical, moral and social

welfare of students in the institutions affiliated to it and to lay down conditions of their
residence, health and discipline;

(26) to make arrangements for promoting the health and general welfare of its
employees;

(27) to appoint officers and servants of the Board, other than Chairman, Secretary,
Under Secretary or Assistant Secretary, in its office and to regulate terms and conditions
of their service;

(28) to constitute provident fund for the benefit of the officers and servants of the
Board;

(29) to prepare and approve the annual financial statement;

(30) to conduct statistical and other research for the purpose of evaluation and
reform of the curricular instruction and examination system;

(31) to appoint such committees as it may think necessary for the efficient
discharge of its functions under this Act;

(32) to make regulations for the purpose of carrying into effect the provisions of
this Act;

(33) to exercise such other powers and perform such other duties as may be
conferred or imposed by or under this Act;

(34) to publish reports, papers, journals, bulletins, etc. giving information of the
activities of the Board;

(35) to make special arrangements in respect of women students as the Board may
consider desirable;

(36) to do all such acts and things as may be necessary to carry out the purposes of
this Act.
 392

CHAPTER – III

Officers of the Board

7. The following shall be the Officers of the Board:-

(i) Chairman of the Board;

(ii) the Secretary, Under Secretary and Assistant Secretary of the Board;
and
(iii) such other Officers in the service of the Board, as may be declared by
the regulations to be the Officers of the Board.

Chairman and Vice-Chairman of the Board

8. (1) The Chairman of the Board shall be appointed by the Government by a

notification published in the official gazette.

(2) The Chairman shall possess a minimum educational qualification of a Master’s

Degree from a recognized University, with teaching and/or administrative experience
of not less than fifteen years in a responsible position of which at least five years shall
be in the rank of a Professor of a University or equivalent or in the rank of a Joint
Secretary to Government of India or equivalent. The qualifications may, however, be
relaxed by the Government in the case of exceptionally meritorious cases otherwise.

(3) The Chairman of the Board shall, subject to any terms and conditions in his
contract of service, hold office for a term of four years from the date on which he enters
upon his office:

Provided that notwithstanding the expiry of the said period of four years, he
shall continue in office until his successor is appointed and enters upon his office.

(4) The Government may, from time to time, extend the term of Office of the
Chairman of the Board:

Provided that the term shall not exceed in the aggregate a period of eight years.

(5) No person shall hold or continue to hold the Office of the Chairman of the
Board after he completes the age of sixty-five years.

(6) The Chairman of the Board shall be a servant of the Government and shall
draw his salaries and allowances from the funds of the Government. The salaries and
allowances and other conditions of service of the Chairman of the Board shall be such as
may be prescribed by the Government.
 393

(7) The Government shall appoint a Vice-Chairman from amongst the members
of the Board, to exercise the powers and duties of the Chairman in his absence.

(8) If the Office of the Chairman becomes vacant due to death, resignation,
removal or otherwise, or if he is unable to perform his duties owing to absence, illness
or any other cause, the Vice-Chairman shall attend to the duties of Chairman and in his
absence, the Government shall nominate from among the members of the Board a
person to perform the duties of the Chairman until a new Chairman assumes office or
until the existing Chairman attends to the duties of his office, as the case may be:

Provided that the Government shall necessarily appoint a Chairman if the period of
absence of the incumbent Chairman is for more than one month or for such other period
as the Government may decide in this regard.

Powers and duties of the Chairman

9. (1) The Chairman of the Board shall be the principal academic and controlling
officer of the Board and shall preside over the meetings of the Board and any
convocation of the Board. He shall be the ex-officio member and the Chairman of the
Executive Council, the Academic Council, the Examination Committee, the Finance
Committee, the Affiliation Committee and any other committees which the Board may
constitute and deem it necessary for him to chair.

(2) He shall be entitled to be present with the right to speak, at any meeting of
any authority or body of the Board, but shall not be entitled to vote unless he is a
member of that authority or body.

(3) The Chairman of the Board shall have the power to convene meetings of the
Board, the Executive Council, the Academic Council, the Examination Committee, the
Affiliation Committee and any other body or Committee of the Board. He may delegate,
by a regulation, this power to any other officer of the Board.

(4) It shall be the duty of the Chairman of the Board to ensure that the regulations
made are faithfully observed and he shall have all powers necessary for this purpose.

(5) If there are reasonable grounds for the Chairman of the Board to believe that
there is an emergency which requires immediate action to be taken, he shall take such
action as he deems necessary and shall at the earliest opportunity thereafter, report his
action to the said authority or body which would have in the ordinary course dealt with
the matter. In the event of a dispute arising between the Chairman of the Board and the
authority or body as to whether there was an emergency, the matter shall be referred to
the Board, the decision of which shall be final.
 394

(6) The Chairman of the Board shall be responsible for the administration of the
affairs of the Board in accordance with the regulations made and shall give effect to the
decisions of the Executive Council and other authorities or bodies of the Board which
are not inconsistent with this Act.

(7) It shall be lawful for the Chairman of the Board, as the principal Executive
Officer, to regulate the work and conduct of the officers and members of the
administrative and ministerial staff of the Board in accordance with the provisions of
this Act and rules and regulations made thereunder.

(8) Where any matter is required to be regulated by a Regulation, the Chairman of

the Board may for the time being regulate the matter by issuing such directives as he
thinks necessary, and shall at the earliest opportunity thereafter, place them before the
Executive Council or other authority or body concerned for approval.

(9) The Chairman of the Board shall exercise such other powers as may be
prescribed.

Appointment, duties and powers of Secretary, Under Secretary and

Assistant Secretary

10. (1) The Secretary of the Board shall be a whole time salaried officer of the Board.
He shall be appointed by the Government. His emoluments and terms and conditions
of service shall be as may be prescribed. The Secretary shall possess a minimum
educational qualification of a second class Master‘s Degree from a recognized
University. He shall preferably have a teaching and/or administrative experience of not
less than ten years.

(2) Next to the Chairman of the Board, the Secretary of the Board shall maintain
control and discipline over all the employees of the Board.

(3) The Secretary shall act as Secretary of the Board, the Executive Council, the
Academic Council, the Examination Committee, the Finance Committee, the Affiliation
Committee and all such other committees of the Board which the Board may desire him
to do so, but he shall not be entitled to vote.

(4) Subject to the control of the Executive Council, the Secretary shall have the
power to enter into agreements, sign documents and authenticate records on behalf of
the Board.

(5) He shall be the custodian of the records, the Common Seal and such other
properties of the Board as the Executive Council may commit to his charge.
 395

(6) He shall keep the minutes of all meetings of the Board, the Executive Council,
the Academic Council, the Examination Committee, the Affiliation Committee and all
such other committees and bodies where he may be permitted to act as the Secretary by
the Chairman of the Board.

(7) The Secretary shall ensure, in accordance with the directions of the Chairman
of the Board, and wherever necessary in consultation with the Examination Committee,
the proper organisation and conduct of final examinations and such other tests and
examinations as may be conducted by the Board and declaration of results thereof.

(8) The Secretary shall exercise such other powers and perform such other duties
as may be prescribed or are required from time to time by the Executive Committee or
the Chairman of the Board.

(9) The Government may appoint one or more Under Secretaries and Assistant
Secretaries for the Board on the recommendation of the Board. Such Under Secretaries
and Assistant Secretaries shall exercise such powers and perform such duties as may be
assigned to them by the Secretary under the general or special orders of the Board.

(10) When the Office of the Secretary of the Board falls vacant or when Secretary
is, by reason of illness, or absence or any other cause, unable to perform the duties of his
office, such duties shall be performed by such person as the Chairman of the Board may
appoint for the purpose from among the Under Secretaries. The Secretary, Under
Secretaries and Assistant Secretaries appointed under this Act, shall be the servants of
the Government and shall draw their salaries and allowances from the Consolidated
Fund of the Union Territory. The salaries and allowances of these officers shall be such
as may be prescribed by the Government.

Appointment of other officers and servants of the Board

11.(1) The Board may appoint such other officers and servants as it considers
necessary for the efficient performance of its functions under this Act.

(2) The salaries and allowances and other terms and conditions of service of the
officers and other servants appointed by the Board under sub-section (1) shall be such
as may be determined by it by regulations made under this Act.
 396

CHAPTER – IV

Authorities of Board

12.(1) The following shall be the Authorities of Board, namely:-

(a) the Board;

(b) the Executive Council;
(c) the Academic Council;
(d) the Finance Committee;
(e) the Examination Committee;
(f) the Affiliation Committee;
(g) the Board or Boards of Studies; and
(h) such other bodies of the Board as may be declared by the
regulations of the Board to be authorities of the Board.

(2) The Board may appoint such other committees as it thinks necessary for the
efficient performance of its functions.

(3) The Constitution of every committee appointed by the Board, the term of office
of its members, the duties and functions to be discharged by it, shall be such as may be
laid down by regulations made in this behalf.

Board

13.(1) The Board shall be the principal authority for all financial estimates and
budgetary appropriations and shall consist of the Chairman and Vice-Chairman of the
Board appointed by the Government under section 8, and of the following, namely:-

(i) Ex-officio Members:

(a) The Director of School Education.

(b) The Joint Director of Education (Higher Secondary)

(c) The Deputy Director of Education (Elementary).

(d) The Additional Director of Technical Education, Puducherry.

(e) A nominee of the Finance Department, Puducherry.

(f) The Head of the State Training Centre, Puducherry.

 397

(ii) Nominated Members:

(a) Principal of a higher secondary school.

(b) Headmaster of a high school.
(c) A teacher engaged in teaching at the level of higher secondary
education.
(d) A teacher engaged in teaching at the level of Secondary education.
(e) A teacher engaged in teaching at the level of elementary education.
(f) Principal of a private matriculation school.
(g) Two representatives on academic side of the Puducherry University
nominated by the Vice-Chancellor of the said University.
(h) Five eminent educationists nominated by the government.
(i) A nominee of the National Council of Education, Research and
Training to be nominated by the Head of such organisation.
(j) A nominee of the National Council for Teacher Education to be
nominated by the Head of such organisation.
(k) A college teacher with proven academic record.
(l) One member representing Fine Arts:

Provided that, a person shall cease to hold office as a member of the Board if he
ceases to be in the employ of the Puducherry University or the State Training Centre
located in the Territory or, National Council of Education Research and Training or
National Council for Teacher Education or to be a Principal or Headmaster or teacher of
a secondary school or higher secondary school or elementary school as the case may be
or, in the management of privately managed secondary/higher secondary school or
matriculation school, as the case may be.

(2) The name of persons, not being the ex-officio members, who have been
nominated, from time to time, as members of the Board shall be published by the Board
in the official gazette.

(3) No employee of the Board shall be eligible to be nominated to the Board.

(4) No person shall be nominated as member of the Board or continue to be such

member for more than two consecutive terms.

(5) When a person ceases to be a member of the Board he shall automatically

cease to be a member of any council/committee of the Board to which he has been
appointed by the Board.
 398

Term of office and allowances of members of Board

14. (1) The members nominated under section 13 shall hold office for a term of four
years from the date on which the names are published in the official gazette:

Provided that, the term of office of the outgoing members shall extend to and
expire, on the date immediately preceding the date on which the names of their
successors are published in the official gazette.

(2) As near as may be one-fourth of the members nominated under section 13

shall retire at the end of each year after the first year in the manner to be prescribed.

(3) When the term of office of a member, other than an ex-officio member,
expires, the vacancy so arising shall be filled as soon as may be, and to this end all
necessary steps be taken by the Chairman of the Board within three months before
expiry of the term of office of the said member.

(4) Members shall be entitled to such allowances as are determined by the

regulations made by the Board.

Disqualification of Chairman, Vice-Chairman and members

15.(1) A person shall be disqualified whether appointed, nominated or designated

as, or from continuing as a Chairman, Vice-Chairman or a member of the Board or of
any Committee appointed under this Act, -

(a) if he directly or indirectly by himself or his partner has or had any share or
interest in any text-book published:

Provided that a person who had any share or interest in the text-book concerned
shall not be deemed to have incurred disqualification under this clause if five years had
lapsed from the date of publication of such book;

(b) if he directly or indirectly by himself or his partner, has any share or interest
in any work done by the order of, or any contract entered into on behalf of the Board;
(c) if he is an undischarged insolvent;
(d) if he is adjudged to be of unsound mind by a competent authority; or
(e) if he is a person against whom an order of removal from office has been
made by the Government by specific proven charges involving moral turpitude or
disgraceful conduct or action detrimental to the interest of the Board:
 399

Provided that a person against whom such order is made would not be deemed to
be disqualified under this clause if five years or lesser period as the Government may
specify has elapsed from the date of his removal from office.

Explanation.- For the purpose of clause (a) –

(i) the publication of text-book includes its republication;

(ii) a person shall be deemed to have incurred disqualification by reason
of his having any share or interest in the business of the publisher of
such text-book.

(2) All cases of disqualification of incumbent Chairman, Vice-Chairman or

members of the Board will have to be necessarily approved by the Board which may for
the purpose, make such enquiry as it may deem fit. In the event of such approval being
granted by the Board, in the case of incumbent member, he shall stand disqualified and
removed from the office; and in the event of such approval being granted by the Board
in the case of incumbent Chairman or Vice-Chairman, the Government shall remove
from office on the recommendation of the Board:

Provided that, no such approval shall be given by the Board unless the
incumbent Chairman, Vice-Chairman or member to whom it relates has been given a
reasonable opportunity of showing cause why such disqualification should not be
effected:

Provided further that when the Board considers the disqualification of any
incumbent member, Vice-Chairman or Chairman, he shall not have any right to vote
during such discussions and in the case of discussions regarding the disqualification of
incumbent Chairman, he shall not chair the meeting and the post of the Chairman for
the limited purpose of presiding over such meetings shall be filled up by the
Government in accordance with the procedure laid down under sub-section (8) of
section 8 of this Act.
Resignation of members

16. (1) A member of the Board not being an ex-officio member, may, resign his office
at any time by tendering his resignation in writing to the Chairman of the Board, and
such member shall be deemed to have vacated his office as soon as the Chairman has
accepted his resignation.

(2) The name of any member whose resignation has been accepted by the
Chairman under sub-section (1) shall be published by the Board in the official gazette.
 400

Removal of Chairman, Vice-Chairman and member

17.(1) A person appointed to the post of Chairman shall, subject to the provisions
contained in section 15, ordinarily hold office for the entire period of his tenure unless
removed from office by the Government on specific proven charges involving moral
turpitude or disgraceful conduct or actions detrimental to the interest of the Board.

(2) The Government may, on the recommendation of the Board and after making
such further enquiry as it may think fit to make, remove the Vice-Chairman or any
member of the Board or of any committee/council appointed from office, if such
member has been convicted of an offence involving moral turpitude or has been guilty
of any disgraceful conduct which in the opinion of the Board renders him unfit to be
continued as a member or has acted in any manner detrimental to the aims and
objectives of the Board.

(3) No such removal or recommendation for removal as contained in sub-sections

(1) and (2) aforesaid shall be made unless the Chairman/vice-Chairman/member to
whom it relates, has been given a reasonable opportunity of showing cause why such
removal/recommendation for removal should not be made.

(4) The name of any Chairman/Vice-Chairman/member who has been removed

from office under sub-sections (1) and (2) shall be published by the Board in the official
gazette.
Vacancy of Chairman, Vice-Chairman or member
18.(1) If the Chairman or a member of the Board or any committee/ council
appointed under this act, becomes, disqualified under section 15, his office shall become
vacant.
(2) If the resignation tendered by the Chairman, Vice-Chairman or a member of
the Board or of any committee/council appointed is accepted by the Government or the
Chairman as the case may be, his office shall become vacant.

(3) If the Chairman, Vice-Chairman or a member of the Board or of any

committee/council appointed is removed, his office shall become vacant.

(4) If a member nominated or designated by the Board remains absent without

the permission of the Board from three consecutive meetings thereof, his office shall
thereupon become vacant; and all such vacancies shall be notified by the Board in the
official gazette.

(5) If any question arises as to whether the Office of the Chairman, Vice-Chairman
or the member has become vacant under sub-sections (1) to (4) above, the question shall
be referred to the Government and its decision in the matter shall be final.
 401

Casual vacancies

19. Every casual vacancy among the members of the Board or any committee or
council constituted under this Act, shall be filed up as soon as may be, by nomination or
designation as the case may be, and the person nominated or designated under the
casual vacancy shall hold office so long as the member in whose place he has been
nominated or designated would have held it if the vacancy had not occurred.

Acts and proceedings

20. No Act or proceeding of the Board or the Executive Council or the Academic
Council or any other authority or committee of the Board, shall at any time, be deemed
invalid on the ground only that it is not duly constituted or that there is a defect in its
constitution or that there is a vacancy in the membership thereof, and the validity of
such act or proceedings shall not be questioned in any Court or before any authority
merely on any such ground.

Meetings of the Board

21.(1) The Board shall, on a date to be fixed by the Chairman of the Board, meet not
less than three times in every year, and not more than four months shall ordinarily
intervene between two such consecutive meetings.

(2) The Chairman of the Board,-

(a) if he thinks fit, may, and

(b) upon a requisition in writing signed by not less than one-third of the total
number of members of the Board, shall,

convene a special meeting of the Board, after giving a notice of seven days in the case of
clause (a) and on a date not later than 21 days from the date of receipt of the request by
the Chairman in the case of clause (b).

Power to invite experts and officers at meetings

22.(1) The Board may invite any person who in its opinion is an expert in some field
of education or any official of the Government not below the rank of a Deputy Director
or equivalent or any person who because of his knowledge or experience in some
specific area, may, in the opinion of the Board, rendered valuable assistance in decision
making, to attend its meeting or any meeting of its committees, if a subject with which
the expert or the officer or such person is concerned with, is likely to come up or comes
for discussion or consideration at such meetings.
 402

(2) The experts, officers and persons invited under sub-section (1) to the meetings
of the Board or its committees shall have no power to vote.

The Executive Council

23.(1) The Executive Council shall be the executive authority of the Board and shall
consist of the following:-

(i) the Chairman of the Board as the ex-officio Chairman,

(ii) the Director of School Education,
(iii) two members to be nominated by the Chairman of the Board from
amongst the ex-officio members referred to in clause (i) of sub-
section (1) of section 13,
(iv) two members to be nominated by the Chairman of the Board from
amongst the nominated members referred to in clause (ii) of sub-
section (1) of section 13.

(2) The term of office of the nominated members shall be four years.

(3) If a member other than an ex-officio member nominated to the Executive

Council remains absent without permission of the Council for three consecutive
meetings thereof, his office shall be deemed to have been vacated.

Duties and functions of the Executive Council

24. (1) Subject to the provisions of this Act and the rules made thereunder, the
Executive Council shall have the following duties and functions, namely:-

(i) to determine the form, provide for the custody and regulate the use
of the Common Seal of the Board;
(ii) to transfer and accept transfer, hold, control, administer and deal
with any property, movable or immovable and funds of the Board,
and to enter into contract on behalf of the Board provided that no
transfer of movable or immovable property shall be made without
the previous sanction of the Board;
(iii) to apply for and receive grants;
(iv) to manage and regulate the finances, accounts and investments of the
Board;
 403

(v) to invest, subject to the provisions of this order any money

belonging to the Board, including any unapplied income, in any of
the securities as may be prescribed or in the purchase of immovable
property within India, or to place in fixed or call deposits in any
Scheduled Bank, any portion of such money not required for
immediate expenditure;
(vi) to charge and collect such fees as may be prescribed by the rules
and regulations framed hereunder;
(vii) to accept, receive, hold, control, administer and deal with any
funds, donations, endowments and other transfers of any property
or interest therein or right thereto placed at the disposal of the
Board for specific purpose;
(viii) to consider the annual, revised or supplementary budget estimates
and the annual accounts of income and expenditure of the Board
and the recommendation of the Finance Committee of the Board
thereon and to submit them to the Board;
(ix) to recommend the number of Under Secretaries and Assistant
Secretaries to be appointed by the Government among the officers
of the Board;
(x) to fix and determine the rates of traveling and other allowances to
the members of the Board and its committees;
(xi) to sanction –

(a) the number of posts of officers and servants to be appointed by

the Board under section 11 and to suspend, hold in abeyance or
abolish any such posts;
(b) the payment of special pay and other allowances at such rates
and subject to such conditions as it may deem fit in respect of :-

(1) specialised nature of duties or additional duties performed by the employees

of the Board;
(2) duties performed on Sundays and holidays by the employees of the Board;
(3) duties performed by the employees of the Board beyond normal hours;
(4) any remunerative jobs done by the employees of the Board outside their office
hours;
(xii) subject to the budget provisions approved by the Board under
section 38 to sanction purchase or hire of stores, paper, forms,
stationery, furniture or other equipments required for the Board’s
office, after calling for tender and to scrutinize them when
received and to enter into contract:
 404

Provided that it should not be necessary to call for any tender if the value of
stores, papers, forms, stationery or other equipment required or the expenditure
involved in the contract is less than 5,000 or such other amount as may be prescribed
by the Board from time to time, or if the above articles are urgently required or the
work in respect of which the contract is entered into needs to be urgently carried out or
the Executive Council does not think it advisable to call for the tenders for reasons to be
recorded by it;

(xiii) to enter into, vary, carry out and cancel on behalf of the Board, a
contract for the provisions of the buildings and supply of
materials for proper discharge of duties assigned to it;
(xiv) to write off irrecoverable sums due in respect of stores, priced
publication, statement of marks and unserviceable articles of
dead stock, if the amount of the dues in each case exceeds 100
but does not exceed 1,000;
(xv) generally to advise the Chairman of the Board on any matter
connected with the work of the Board which it deems fit or which
the Chairman may refer to it;
(xvi) to report to the Board upon any matter concerning which its view
may be invited by the Board or in respect of which it considers
that it should tender advice to the Board;
(xvii) to make recommendations to the Board concerning framing
or amending the rules and regulations of the Board after
considering the recommendations, if any, from the committees
of the Board;
(xviii) to institute and make provisions for the grant of scholarships,
awards, medals, prizes and other rewards and to prescribe
conditions therefor;
(xix) to accept, reject or refer back any proposal, recommendations or
report from the Academic Council, the finance Committee, the
Examination Committee, the Affiliation Committee or other
committee of the Board;
(xx) to recommend the Board, for approval, rates of travelling
allowance and remuneration, etc. to the paper-setters,
moderators, examiners, translators, invigilators and other
personnel after taking into consideration the recommendations of
the other committees of the Board;
(xxi) to authorise such advance as it may from time to time consider
necessary, to remain in the hands of the Secretary to meet
legitimate petty expenditure;
 405

(xxii) to direct inspection of secondary and higher secondary schools

and other affiliated institutions in order to assess academic
performances and needs, to issue instructions where necessary,
for maintaining efficiency and ensuring adequate amenities for
students;
(xxiii) to recommend to the Government, the withholding of grant or
taking of such other disciplinary measures in respect of
secondary and higher secondary schools and institutions which
do not comply with the instructions issued from time to time by
the Board;
(xxiv) to undertake printing and publication of books prepared and/or
compiled by the Board and approved as text-books by the
Board.

(2) The quorum for the meeting of the Executive Council shall be one-half of the
total number of the members of the Executive Council.
(3) The Executive Council shall report to the Board all acceptance or transfer of
property done by the Executive Council.

The Academic Council

25. (1) The Academic Council shall be the Chief Academic Authority of the Board
and shall consist of the following members, namely:-

(i) the Chairman of the Board as ex-officio Chairman;

(ii) three members to be nominated by the Chairman of the Board from
amongst the ex-officio members referred to in clause (i) of sub-
section (1) of section 13;
(iii) three members to be nominated by the Chairman from eminent
educationist;
(iv) one member to be nominated by the Chairman of the Board from
amongst the nominated members referred to in clause (ii) of sub-
section (1) of section 13.
(v) the convenors of the Board of Studies.

(2) The term of office of the members of the Academic Council shall be four years.

Duties and functions of the Academic Council

26. The Academic Council shall be the chief academic body and shall have the right
to advise the Board on all academic matters. Without prejudice to the generality of this
provision, the Academic Council shall have the following duties and functions,
namely:-
 406

(i) to formulate guiding principles for determining curricula and

syllabus for the entire secondary, higher secondary education and
for such
other courses as it may deem fit;
(ii) to consider and submit its recommendations to the Executive
Council on the detailed syllabi for all standards, after taking into
consideration the recommendations of the respective Boards of
studies thereon;
(iii) to consider and submit its recommendations to the Executive
Council on the curricula and detailed syllabi prepared by the
Boards of studies for the final and other examinations;
(iv) to formulate general principles for preparing text-books;
(v) to prepare or recommend for prescription to the Executive Council
text-books for the standard leading to the final examinations, after
taking into consideration the recommendations of the respective
Boards of Studies thereon;
(vi) to recommend to the Executive Council standard requirements in
respect of staff, building, furniture, equipment, stationery and other
things required for secondary and higher secondary schools and
such other institutions;
(vii) to recommend to the Board measures to promote intellectual,
physical, cultural, moral and social welfare of students in
institutions affiliated to the Board and the conditions of their
residence and discipline;
(viii) to consider and submit its recommendations to the Executive
Council on the following matters pertaining to the final
examinations after receipt of the recommendations of the Boards of
Studies –

(a) the total number of compulsory and optional subjects;

(b) proposals for introduction of new subjects and exclusion of
existing subjects;
(c) the formation of groups of subjects and the alteration of such
groups;
(d) the number of question papers to be set in each subject;
(e) the maximum and minimum marks, time, duration and
standard length for written, oral or practical tests in different
subjects or groups of subjects;

(ix) to conduct statistical or other research for the purpose of evaluation

and reform of curricula, instruction and examination system;
 407

(x) to co-ordinate the work of the Boards of Studies and to scrutinise the
recommendations in regard to various matters with which each
Board of Studies is concerned;
(xi) to recommend to the Board, refresher course, lectures,
demonstrations, educational exhibition and such other measures as
are necessary to raise and maintain standard of secondary, higher
secondary and such other forms of education.

The Finance Committee

27. There shall be a Finance Committee consisting of –

(i) the Chairman of the Board as ex-officio Chairman;

(ii) the Director of Accounts and Treasuries;
(iii) two members to be nominated by the Chairman of the Board from
amongst the ex-officio members referred to in clause (i) of sub –
section (1) of section 13;
(iv) one member to be nominated by the Chairman of the Board from
amongst the nominated members referred to in clause (ii) of sub –
section (1) of section 13;

Duties and functions of the Finance Committee

28. The Finance Committee shall act as an advisory body on all matters concerning
the finance of the Board. Its duties and functions shall be as under:-
(i) to prepare and submit to the Executive Council with its
recommendations the annual, revised or supplementary budget
estimate of the annual accounts of income and expenditure of the
Board;
(ii) to make recommendations to the Executive Council on matters
relating to finances of the Board including investments and
borrowings etc.;
(iii) to examine every proposal of new expenditures and to advise the
Executive Council thereon;
(iv) to review and report periodically to the Executive Council on the
financial position of the Board;
(v) generally to devise means for effecting economy, without impairing
efficiency;
(vi) to consider proposals for fixation of pay scales for new posts and
revision of pay scales and all proposals concerning allowances,
remunerations, wages and honoraria and advise the Executive
Council thereon.
 408

The Examination Committee

29. The Examination Committee shall consist of -

(i) the Chairman of the Board as the ex-officio Chairman;

(ii) five members to be nominated by the Chairman of the Board from
amongst the ex-officio members referred to in clause (i) of sub-
section (1) of section 13;
(iii) one member to be nominated by the Chairman of the Board from
amongst the nominated members referred to in clause (ii) of sub-
section (1) of section 13;

Duties and functions of the Examination Committee

30. Subject to provisions of the Act and the rules made thereunder, the Examination
Committee shall have the following duties and functions, namely:-

(i) to supervise and co-ordinate activities pertaining to the final

examination and such other examinations conducted or caused to
be conducted by the Board;
(ii) to recommend to the Executive Council general principles to be
followed by the Board in regard to the preparation of panel and
appointment of paper-setters, moderators, translators, examiners,
etc.;
(iii) to fix the centers and dates for each examination;
(iv) to lay down instructions to be issued to the candidates,
superintendents of examination centers, examiners and others;
(v) to recommend to the Executive Council suitable forms of
applications to be filled by the candidates applying for permission to
appear at the final examination and suitable forms of certificates
and provisional certificates to be issued to successful candidates and
statement of memorandum of marks to all candidates in respect of
the final or such other examinations;
(vi) to lay down the procedure and specific penalties to be imposed in
dealing with cases of use of unfair means by the candidates seeking
admission to or appearing at the examinations conducted under the
authority of the Board;
(vii) to consider and forward its observations to the Academic Council
on any proposal to amend the scheme of the final examination and
such other examinations as set out from time to time;
 409

(viii) to recommend to the Executive Council, the rates of travelling

allowance, remuneration or honoraria for various items of work
connected with the final and other examinations;
(ix) to recommend to the Executive Council on qualification and
disqualification of paper-setters, translators, moderators,
examiners and other officials connected with the work of conduct
of final and other examinations;
(x) generally review the results of the final examinations on the
declaration of the same and submit its observations to the
Academic Council.

The Affiliation Committee

31. The Affiliation Committee shall consist of –

(i) the Chairman of the Board as the ex-officio Chairman;

(ii) two members to be nominated by the Chairman of the Board from
amongst the ex-officio members referred to in clause (i) of sub-
section (1) of section 13;
(iii) one member to be nominated by the Chairman of the Board from
amongst the nominated members referred to in clause (ii) of sub-
section (1) of section 13.

Duties and functions of the Affiliation Committee

32.(1) The Affiliation Committee shall consider and make recommendations on all
matters relating to the grant or withdrawal of affiliation of secondary and higher
secondary schools and such other institutions in accordance with the prescribed
procedure.

(2) It shall be competent for the Affiliation Committee to suggest and recommend
any alterations or any additions to the regulations regarding condition of affiliation of
institution for the purpose of admitting them to the privileges of the Board including
examinations conducted by it.

Board or Boards of Studies

33.(1) The Board shall constitute a Board or Boards of Studies for different subjects
or groups of subjects, as may be considered necessary from time to time.

(2) Each Board of Studies shall ordinarily consist of such number of members, but
not less than five and not more than seven members all of whom need not be the
members of the Board, as the Board may decide.
 410

(3) The Convenor and the members of the Board of Studies shall be appointed by
the Board.

(4) Any two or more Boards of Studies may, with the consent of the Chairman of
the Board and shall, when so required by the Board, meet and act in concurrence and
render a joint report on any matter with which they are severally and jointly concerned.
In such cases the quorum of the joint meeting will be majority of the members of the
Board of Studies meeting jointly. The Chairman of the joint session shall be elected by
the joint meeting.

(5) All the proceedings of the Board of Studies shall be treated as confidential and
in particular the discussions on the merits and demerits of text-books shall not be
divulged.
Duties and functions of Board of Studies

34.(1) It shall be the duty of Board of Studies to consider and make

recommendations to the Academic Council in respect of the subjects with which it is
concerned, regarding –

(i) the detailed syllabi for all standards;

(ii) the curricula and detailed syllabi for the final examination and such
other examinations as the Board may decide;
(iii) the preparation or prescription of text-books in conformity with the
syllabus and suggest such conditions, if any, as may be deemed fit,
after considering the reports of the reviewers;
(iv) any matter relating to the subject or subjects within its purview
referred to it by the Executive Council, Academic Council or other
authorities of the Board;
(v) the standard and quality of question papers (including the model
answers, if any) set for the final examination and such other
examinations conducted by the Board and the observations of the
respective Board of Studies thereon.

(2) A Board of Studies may bring to the notice of the appropriate authorities of
the Board any matter connected with the final examination, the courses of studies laid
down therefor, the text-books prepared or prescribed and other connected matters of
academic importance.
Other Board authorities and committees

35.(1) The Executive Council may, by regulation, constitute and define the functions
of such other committees or authorities as, it may, from time to time, think necessary,
for the purposes of carrying out the work of the Board.
 411

(2) The powers and duties of such authorities and committees and the procedure
to be followed at their meetings, shall be indicated in the respective regulations.

CHAPTER – V

Finance, Annual Accounts and Annual Report

Board’s Fund, custody and investment

36.(1) The Board shall establish a fund to be called Board’s Fund.

(2) The following shall form part of, or paid into the Board’s Fund:-

(a) all contributions, assignments, loans and grants, if any;

(b) all income of the Board from any source whatsoever including income
from fees, royalties and charges levied by the Board;
(c) all income or moneys from trusts, bequests, donations and endowments or
other contributions, if any;
(d) interest on, and sale proceeds of any securities vested in the Board;
(e) any sums borrowed from the banks or other financial institutions, with the
permission of the government; and
(f) other moneys received by or on behalf of the Board.

(3) The Board’s Fund shall, at the discretion of the Executive Council, be kept in
any Scheduled Bank as defined in the Reserve Bank of India Act, 1934 (Central Act 2 of
1934.), or in such other manner as may be prescribed by the Government.

Procedure for withdrawal of Board’s Fund

37. No payment shall be made by a Bank out of the Board’s Fund, except upon a
cheque or letter of credit signed by an officer serving under the Board duly authorised
by the Board in this behalf.

Annual Accounts and Financial Estimates

38.(1) The Annual Accounts of the Board shall be prepared by the Finance
Committee under the direction of the Executive Council and shall be audited by the
auditors appointed by the Board.
(2) The accounts when audited shall be published by the Executive Council and a
copy thereof shall, together with the copy of the audit report, be submitted to the Board.
(3) The Finance Committee shall prepare, before such date and in such manner as
may be prescribed, the budget estimates of income and expenditure for the next
financial year.
 412

(4) The annual accounts and the estimates as approved by the Executive Council,
shall be submitted to the Board which shall consider and approve them with such
modifications as it may deem fit.
(5) The Board shall, after the approval of the budget estimates forward the same
to the Government for its information. The Government may on scrutiny of the budget
communicate such advice with respect to the budget estimates of the Board as it thinks
fit, and it shall be the duty of the Board to strive to implement such advice.

Annual Report

39. The annual report of the Board shall be prepared under the direction of the
Executive Council and shall be submitted to the Board on or before such date as may be
prescribed and which shall be considered by the Board in its annual meeting. The Board
may pass resolutions thereon and communicate them to the Executive Council which
shall consider and take such action thereon as it thinks fit; and the Executive Council
shall then inform the Board in its next meeting, the actions taken by it or its reasons for
taking no action on such resolutions, if any.

CHAPTER – VI

Miscellaneous Provisions

Submission of students by affiliated institutions or otherwise for examinations to be

conducted by the Board

40. Only such candidates as are sent by the affiliated secondary or higher secondary
or any such affiliated institutions and such other candidates as may be specifically
permitted by the Board under the rules and regulations to be framed hereunder, shall
be eligible to appear at the final examination or, any such examination to be conducted
by the Board, subject to such conditions as may be specified from time to time by the
Board and in such manner as may be prescribed.

Conditions of service

41.(1) The emoluments and terms and conditions of service of all the employees of
the Board shall be as may be prescribed.

(2) All salaried officers and employees of the Board including those appointed by
the Board for specified periods or for specified work or who receive remuneration such
as allowances, fees or other payments from the Board’s Fund shall be deemed to be
public servants within the meaning of section 21 of the Indian Penal Code, 1860 (Central
Act 45 of 1860).
 413

Acting Chairman of the meetings

42. Where no provision is made by or under this Act, for the Chairman to preside
over a meeting of any authority or committee of the Board or where the Chairman so
provided for is absent, and no provision is made for any other person to preside, the
members present shall elect a person from amongst themselves to preside at the
meeting.

Question regarding interpretation and disputes regarding

Constitution of Board’s authority or body, etc

43. If any question arises regarding interpretation of any provision of the Act or the
rules and regulations made thereunder, or as to whether a person has been duly
appointed, as, or is entitled to be, a member of any authority or body of the Board, the
matter may be referred, on petition by any person or body directly affected or by the
Chairman of the Board, to the Government which shall, after taking such advice as it
thinks necessary, decide the question, and the decision of the Government shall be final:

Provided that such reference shall be made by the Chairman of the Board to the
Government upon a requisition signed by not less than 15 members of the Board.

Protection of acts and orders

44. All acts and orders duly and in good faith done or passed by the Board, or any of
its authorities, bodies or officers shall be final and accordingly no suit or legal
proceedings shall be instituted against or maintained, or damages claimed from the
Board or its authorities, bodies or officers for anything done or passed in good faith or
in pursuance of the provisions of this Act and the rules and regulations framed
thereunder.
Power of Government to make rules

45.(1) The Government may, by notification in the official gazette, make rules for
carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing

provisions, such rules may provide for all or any of the following matters, namely: -

(i) manner and time of preparation of Budget Estimates of the annual

income and expenditure of the Board;
(ii) various examinations that may be listed as final examinations to be
conducted by the Board;
 414

(iii) the admission of candidates to the final examination and

conditions governing such admissions;
(iv) the fee for admission to the final examination and other fees and
charges payable in respect of other matters connected with those
examinations.
(v) the arrangements for the conduct of final examinations and
arrangements for the publication of results;
(vi) the qualification of paper-setters, translators, examiners,
moderators, supervisors and other necessary personnel, their
powers and duties in relation to the final examination and their
remuneration;
(vii) the award of various certificates;
(viii) the qualification and scale of pay of officers and servants of the
Board in its office and the conditions of their service;
(ix) the constitution of the provident fund for the benefit of the officers
and servants of the Board;
(x) the control, administration and safe custody and management in
all respect of the finances of the Board;
(xi) any other matter which is to be or may be prescribed under this
Act.

Power to make regulations

46. The Board may make regulations consistent with this Act and the rules made
thereunder to provide for all or any of the following matters, namely: -

(a) the procedure to be followed at the meetings of the Board and the
committees appointed by the Board and the number of members required to form a
quorum for such meetings;
(b) the allowances which may be drawn by members of the Board and the
committees appointed by the Board;
(c) any matter that solely concerns the Board and its authorities and has not
been provided for by this Act and the rules made thereunder.

First Regulations

47. Notwithstanding anything contained in section 46, the first Regulations on the
matters detailed therein, shall be made by the Government and they shall continue to be
in force until new regulations on the same subject are duly made by the Board.
 415

Information, returns, etc., to be provided by the Board

48.(1) The Board shall furnish to the Government such reports, returns and
statements as may be required by the Government and such further information
relating to any matters connected with its work as the Government may call for.
(2) The Government may, after considering any such report, return, statement or
information furnished, give such directions consistent with this Act as may be necessary
and the Board shall comply with such directions.

Powers of Government to issue directions

49.(1) The Government shall have the power, after considering the suggestions or
recommendations, if any, tendered by the Board, to issue to the Board such directions as
it may consider necessary in regard to all or any of the matters specified in sub-clause
(2) of section 6. The Board shall comply with such directions.

(2)(a) The Government shall have also the right to address the Board with
reference to anything it has conducted or done or, is conducting or doing or, intends to
conduct or do and to communicate to the Board its views in the matter.
(b) The Board shall report to the Government such action, if any, as it proposes
to take or has taken upon the communications and shall furnish an explanation if it fails
to take action.
(c) If the Board does not, within a reasonable time, take action to the
satisfaction of the Government, the Government may, consider explanation, furnished if
any, or representation made by the Board and issue directions consistent with this Act
as it may think fit, and the Board shall comply with such directions.

(3) The Government may, by order in writing specifying the reasons thereof,
suspend the execution of any resolution or order of the Board and prohibit the doing of
the action ordered to be or purporting to be ordered to be done by the Board, if the
Government is of the opinion that such, resolution, order or act is in excess of the power
conferred by or under this Act upon the Board.

Transitional provisions

50.(1) On the appointed day, all institutions affiliated and admitted to the privileges
of the Tamil Nadu Board of Secondary Education or Andhra Pradesh Board of
Secondary Education or the Kerala Board of Secondary Education before the appointed
day as the case may be, shall be deemed to be affiliated and admitted to the privileges
of the Puducherry Board of Secondary and Higher Secondary Education established
under this Act, save in so far as such affiliation or privileges may be withdrawn,
restricted or modified by or under the provisions of this Act.
 416

(2) Notwithstanding anything contained in sub-section (1) above in particular and

in this Act in general, any student prosecuting studies in the higher secondary
education stage, and who immediately before the admission of such institution
imparting such higher secondary education to the privileges of the Puducherry Board of
Secondary and Higher Secondary Education was studying for Higher Secondary
Course Certificate of the Tamil Nadu Board of Higher Secondary Education,
Intermediate Course Certificate of the Andhra Pradesh Board of Intermediate Education
and pre-degree Course Certificate of Calicut University, shall be permitted by the
Puducherry Board of Secondary and Higher Secondary Education to complete his
course for that certificate, as the case may be and such institutions shall provide for the
instructions and examination of such student in accordance with the syllabi of studies
of the respective affiliating bodies.

Government’s interpretation to be final

51. If any question arises regarding the interpretation of any provision of any
regulation made under section 46 or section 47, the matter may be referred by the Board
to the Government for decision and in such circumstances, the decision of the
Government shall be final.
______

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.8 OF 2004

Presently, the educational institutions in the four regions of the Union Territory
of Puducherry are affiliated to the respective Boards of the neighbouring States of
Tamilnadu, Andhra Pradesh and Kerala. As a result, there is no uniformity in
curriculum and standard of education. To overcome this problem, it is proposed to set
up an independent Board of Secondary and Higher Secondary Education in the Union
Territory of Puducherry.

2. The Bill sees to achieve the above objects.

______
 417

THE PUDUCHERRY PROTECTION OF INTERESTS OF DEPOSITORS IN

FINANCIAL ESTABLISHMENTS ACT, 2004

(Act No. 1 of 2005)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Fraudulent default by Financial Establishment
4. Attachment of properties on default of return of deposits
5. Appointment of Competent Authority
6. Duties and powers of Competent Authority
7. Assessment of assets and deposit liabilities
8. Report by the Competent Authority
9. Powers of the Designated Court regarding realization of assets and payment to
depositors
10. Designated Court
11. Power of Designated Court regarding attachment
12. Attachment of property of mala fide transferees
13. Security in lieu of attachment
14. Administration of property attached
15. Appeal
16. Special Public Prosecutor
17. Procedure and powers of Designated Court regarding offences
18. Act to override other laws
19. Protection of action taken in good faith
20. Power to make rules
21. Power to remove difficulties

______
 418

THE PUDUCHERRY PROTECTION OF INTERESTS OF DEPOSITORS IN

FINANCIAL ESTABLISHMENTS ACT, 2004

(Act No. 1 of 2005)

(15-3-2005)
AN
ACT

to protect the interests of depositors in the Financial Establishments in the Union

territory of Puducherry.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-fifth Year of

the Republic of India as follows:-

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Protection of Interests of Depositors
in Financial Establishments Act, 2004.
(2) It extends to the whole of the Union territory of Puducherry.
(3) It shall come into force at once.

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

(a) "competent authority" means the authority appointed under section 5;

(b) "Deposit" includes and shall be deemed always to have included any receipt
of money or acceptance of any valuable commodity by any Financial Establishment
to be returned after a specified period or otherwise, either in cash or in kind or in the
form of a specified service with or without any benefit in the form of interest, bonus,
profit or in any other form, but does not include-
(i) amounts raised by way of share capital or by way of debenture, bond
or any other instrument covered under the guidelines given and
regulations made, by the Securities and Exchange Board of India,
established under the Securities and Exchange Board of India Act,
1992 (Central Act 15 of 1992);
(ii) amounts contributed as capital by partners of a firm;
(iii) amounts received from a Scheduled Bank or a co-operative bank or
any other banking company as defined in clause (c) of section 5 of
the Banking Regulation Act, 1949 (Central Act 10 of 1949);
(iv) any amount received from, -
(A) the Industrial Development Bank of India;
(B) a State Financial Corporation;
(C) any financial institution specified in or under section 4A of the
Companies Act, 1956 (Central Act 1 of 1956); or
 419

(D) any other institution that may be specified by the Government

in this behalf;
(v) amounts received in the ordinary course of business by way of,
(A) security deposit;
(B) dealership deposit;
(C) earnest money; and
(D) advance against order for goods or services;
(vi) any amount received from an individual or a firm or an association of
individuals registered under any enactment relating to money
lending which is for the time being in force in the Union territory of
Puducherry; and
(vii) any amount received by way of subscriptions in respect of a Chit.

Explanation I -- "Chit" has the meaning as assigned to it in clause (b) of section 2

of the Chit Funds Act, 1982 (Central Act 40 of 1982).
Explanation II – Any credit given by a seller to a buyer on the sale of any
property (whether movable or immovable) shall not be deemed to be a deposit for the
purpose of this clause;

(c) "Designated Court" means the Designated Court constituted under section
10;
(d) "Financial Establishment" means any person or group of individuals or a
firm carrying on business of accepting deposits under any scheme or arrangement or in
any other manner but does not include a corporation or a co-operative society owned or
controlled by the Government, any State Government or the Central Government, or a
banking company as defined under section 5 of the Banking Regulation Act, 1949
(Central Act 10 of 1949);
(e) "Government" means the Administrator of the Union territory of
Puducherry appointed by the President under article 239 of the Constitution.

Fraudulent default by Financial Establishment

3. If any Financial Establishment, which fraudulently defaults any repayment of
deposit on maturity alongwith any benefit in the form of interest, bonus, profit or in any
other form as promised or fraudulently fails to render service as assured against the
deposit, every person including the promoter, partner, director, manager or any other
person or an employee responsible for the management of or conducting of the business
or affairs of such Financial Establishment shall, on conviction, be punished with
imprisonment for a term which may extend to six years and with fine which may
extend to one lakh rupees and such Financial Establishment shall also be liable for a fine
which may extend to an amount equivalent to five lakh rupees or where such deposit is
quantifiable in terms of money twice the amount involved in such default whichever is
more:
 420

Provided that in the absence of special and adequate reasons recorded in the
judgement of the Designated Court, the imprisonment shall not be less than for three
years and the fine shall not be less than twenty thousand rupees as against each
individual and not less than one lakh rupees as against such Financial Establishment.

Explanation. – For the purpose of this section, a Financial Establishment, which

commits default in repayment of such deposit with such benefits in the form of interest,
bonus, profit or in any other form as promised or fails to render any specified service
promised against such deposit, or fails to render any specific service agreed against the
deposit with an intention of causing wrongful gain to one person or wrongful loss to
another person or commits such defaults due to its inability arising out of impracticable
or commercially not viable promises made while accepting such deposit or arising out
of deployment of money or assets acquired out of the deposits in such a manner as it
involves inherent risk in recovering the same when needed, shall be deemed to have
committed a default or failed to render the specific service, fraudulently.

Attachment of properties on default of return of deposits

4. (1) The Government or the District Magistrate may, suo moto or on receipt of a
complaint, cause investigation of the complaint, or fraudulent transaction referred to in
section 3. The District Magistrate shall forward his report together with the complaint to
the Government at the earliest.
(2) Notwithstanding anything contained in any other law for the time being in
force,-
(i) where, upon complaints received from the depositors, or otherwise, the
Government is satisfied that any Financial Establishment has failed-
(a) to return the deposit after maturity or on demand by the
depositor; or
(b) to pay interest or other assured benefit; or
(c) to provide the service against such deposit; or

(ii) where the Government has reason to believe that any Financial
Establishment is acting in a calculated manner detrimental to the
interests of the depositors, with an intention to defraud them; or
(iii) where the Government is satisfied that such Financial Establishment is
not likely to return the deposits or make payment of interest or other
benefits assured or to provide the services against which the deposit
is received.

the Government may, in order to protect the interests of the depositors of such Financial
Establishments, after recording reasons in writing, issue an order by publishing it in the
Official Gazette, attaching the money or property believed to have been acquired by
such Financial Establishment either in its own name or in the name of any other person
 421

from and out of the deposits collected by the Financial Establishments, and where it
transpires that such money or other property is not available for attachment or not
sufficient for repayment of the deposits, such other property of the said Financial
Establishments or the personal assets of the promoters, partners, directors, managers or
members or any other person of the said Financial Establishments.

(3) On the publication of the order under sub-section (2), all the properties and
assets of the Financial Establishment and of the persons mentioned therein shall
forthwith vest in the Competent Authority appointed by the Government pending
further orders from the Designated Court.

Appointment of Competent Authority

5. (1) The Government shall while issuing the order under sub-section (2) of section
4, appoint any of its officers not below the rank of Deputy Collector as the Competent
Authority to exercise control over the money and the properties attached by the
Government under section 4.

(2) The Competent Authority shall, apply within fifteen days from the date of the
publication of the said order, to the Designated Court, accompanied by one or more
affidavits stating the grounds on which the Government has issued the said order
under section 4 and the amount of money or other property believed to have been
acquired out of the deposits and the details, if any, of persons in whose name such
property is believed to have been invested or acquired or any other property attached
under section 4, for such further orders as the Designated Court may find necessary.

(3) The competent authority may also make an application to any Special Court or
Designated Court or any other judicial forum established or constituted or entrusted
with the powers by any other State Government under any similar enactment for
adjudicating any issue or subject matter pertaining to money or property or assets
belonging to or ostensibly belonging to a Financial Establishment or any person notified
under this Act situated within the territorial jurisdiction of that Special Court or
Designated Court or any judicial forum as the case may be, for passing appropriate
orders to give effect to the provisions of this Act.

Duties and powers of Competent Authority

6.(1) Without prejudice to the generalities of sub-section (1) of section 5, the

Competent Authority may carry out the purposes of this Act.
 422

(2) (i) On receipt of order of appointment, the Competent Authority shall take
such necessary action as may be necessary or expedient for taking
physical possession of all the monies and assets of the concerned
financial establishment expeditiously and the Competent Authority
shall have all the powers which are necessary for the aforesaid
purpose.

(ii) Without prejudice to the generality of the powers vested under clause
(i), the Competent Authority shall be entitled to –

(a) require assistance of any police authority or any other authority or person
and on such requisition it shall be the duty of the police authority or such other
authority or person to extend necessary assistance;
(b) Open bank accounts in any scheduled commercial bank and credit all
monies realized and operate the bank accounts while dealing with the money received
in his capacity as Competent Authority;
(c) require any person believed to be in possession or control over any money
or assets of the Financial Establishment, to furnish necessary information, to hand over
possession of such assets to the Competent Authority and such person shall comply
with the requisition without any loss of time;
(d) appoint legal practitioner or chartered accountant or any other person
whose services are necessary for taking possession of assets and realization of the assets
of the Financial Establishment;
(e) sell, receive, transfer, endorse, negotiate, or otherwise deal with any
marketable security or negotiable instrument belonging to or in the control of the
Financial Establishment and give proper discharge for the same;
(f) sell, transfer or otherwise realize any movable or immovable property
belonging to or in the control of the Financial Establishment either by public auction or
with the prior approval of the Designated Court by private arrangements:
Provided that the perishable items of assets shall be sold by public auction as
soon as the Competent Authority deems fit;
(g) make payment as per the orders passed by the Designated Court from out
of the bank accounts; and
(h) do all and every act and deed which would be necessary for the speedy
realization of the assets of the Financial Establishment

Explanation. – For the purpose of this section, the expression “Financial

Establishment” includes the directors, promoters, managers or member of said
establishment or any other person whose property or assets have been attached under
section 4.
 423

Assessment of assets and deposit liabilities

7. (1) Within thirty days from the date of appointment, the Competent Authority
shall assess the deposit liabilities and the assets of the Financial Establishment and
submit the statement thereof to the Designated Court.

(2) The Competent Authority thereafter shall issue notice either individually or
by means of effective media publication, inviting claims by secured creditors, if any,
and also the depositors of the Financial Establishment to submit their claims with
proper proof to establish the same.

(3) Every notice under sub-section (2) sent to or deemed to have been effected to
claimants shall state that if the statement of claim is not sent to the Competent
Authority before the expiry of the period of one month from the date of notice, the
claims shall not be treated as a claim entitled to be paid under the provisions of this Act.

(4) Every notice sent to a secured creditor shall require him to value the security
before the expiry of the period of one month from the date of the notice and such notice
shall also state that if the statement of the claim together with the valuation of the
security is not sent to the Competent Authority, the Competent Authority himself shall
value the security and his valuation shall be binding on such secured creditors.

(5) If the claimant fails to comply with the notice as per sub-section (4), such
security shall be valued by the Competent Authority in his best judgement.

Report by the Competent Authority

8. After making a report as per section 7, the Competent Authority shall make an
application to the Designated Court seeking permission to make payment to the
depositors from out of the money realized. While making such application, the
Competent Authority shall assess the liability to the depositors and the other liabilities
and in case the money realized or realizable is not sufficient to meet the entire liability,
make a submission to the Designated Court seeking permission for making payment to
the depositors and disburse the money as per the orders of the Designated Court.

Powers of the Designated Court regarding realization of assets and payment to

depositors

9. (1) The Designated Court shall have all the powers for giving effect to the
provisions of this Act.
(2) Without prejudice to the generality of the foregoing power, the Designated
Court may,--
 424

(a) give any direction to the Competent Authority as it deems fit, for effective
implementation of the provisions of this Act;
(b) approve the statement of dues of the Financial Establishment due from
various debtors, assessment of the value of the assets of the Financial Establishment,
finalise the list of the depositors and their respective dues;
(c) direct the Competent Authority to take possession of any assets belonging
to or in the control of the Financial Establishment and sell, transfer or realize the
attached assets either by public auction or by private sale as may be deemed fit,
depending upon the nature of assets and credit the sale proceeds thereof to the bank
accounts;
(d) approve the necessary expenditure to be incurred by the Competent
Authority for taking possession and realization of the assets of the Financial
Establishment;
(e) order for payment to the depositors by the Competent Authority or order
for proportionate payment to the depositors in the event of the money so realized being
not sufficient to meet the entire deposit liability; and
(f) pass any order which the Designated Court deems fit for realization of the
assets of the company and repayment to the depositors of the Financial Establishment
or on any matter or issue incidental thereto.

Explanation. – For the purpose of this section, the expression “Financial

Establishment” includes the directors, promoters, managers or member of said
establishment or any other person whose property or assets have been attached under
section 4.

Designated Court

10.(1) For the purposes of this Act, the Government may, with the concurrence of the
Chief Justice of the Madras High Court, by notification, in the Official Gazette,
constitute one or more Designated Courts in the cadre of District and Sessions Judge
including Additional District and Sessions Judge for such area or areas or for such case
or class or group of cases, as may be specified in the notification.

(2) No Court other than the Designated Court shall have jurisdiction in respect of
any matter to which the provisions of this Act are invoked.

(3) Any pending case in any other court in respect of which the provisions of this
Act are invoked shall stand transferred to the Designated Court from the date of order
issued under sub-section (2) of section 4 of this Act.
 425

Power of Designated Court regarding attachment

11.(1) Upon receipt of an application under section 5, the Designated Court shall
issue to the Financial Establishment or to any other person whose property is attached
and vested in the Competent Authority by the Government under section 4, a notice
accompanied by application and affidavits and of the evidence, if any, recorded calling
upon the said establishment and the said person to show cause on or before a date to be
specified in the notice, why the order of attachment should not be made absolute.

(2) The Designated Court shall also issue such notice, to all other persons
represented to it as having or being likely to claim, any interest or title in the property
of the Financial Establishment or the person to whom the notice is issued under sub-
section (1) calling upon all such persons to appear on the same date as specified in the
notice and make objection if they so desire to the attachment of the property or any
portion thereof on the ground that they have an interest in such property or portion
thereof.

(3) Any person claiming an interest in the property attached or any portion
thereof may, notwithstanding that no notice has been served upon him under this
section, make an objection as aforesaid to the Designated Court at any time before an
order is passed under sub-section (4) or sub-section (6).

(4) The Designated Court shall if no cause is shown and no objections are made
on or before the specified date, under sub-section (1) forthwith pass an order making
the ad-interim order of attachment absolute.

(5) If cause is shown or any objection is made as aforesaid, the Designated Court
shall proceed to investigate the same, and in so doing, as regards the examination of the
parties and in all other respects, the Designated Court shall, subject to the provisions of
this Act, follow the summary procedure as contemplated under the Code of Civil
Procedure, 1908 (Central Act V of 1908), and exercise all the powers of a court in
hearing a suit under the said Code. Any person making an objection shall be required to
adduce evidence to show that on the date of attachment he had some interest in the
property attached.

(6) After investigation under sub-section (5), the Designated Court shall pass an
order either making the ad-interim order of attachment absolute or varying it by
releasing a portion of the property from attachment or cancelling the ad-interim order
of attachment:
 426

Provided that the Designated Court shall not release from attachment any
interest, which it is satisfied that the Financial Establishment or the person referred to in
sub-section (1) has in the property, unless it is also satisfied that there will remain under
attachment an amount or property of value not less than the value that is required for
repayment to the depositors of such Financial Establishment.

(7) Where the Designated Court passes an order under sub-section (6) making the
order of attachment absolute or varying the orders of the attachment, it may issue such
direction as may be necessary for realization of assets attached and for equitable
distribution amongst the depositors of the money realised from and out of the assets so
attached.

(8) Where an application is made by any person or authority duly authorised or

constituted or specified by any other State Government under a similar enactment
empowering him to exercise control over any money or property or assets attached by
that State Government, the Designated Court shall exercise all its powers, as if, such an
application were made under this Act and pass appropriate order or direction on such
application so as to give effect to the provisions of such enactment.

Attachment of property of mala fide transferees

12. (1) Where the assets available for attachment of a Financial Establishment or
other person referred to in section 4 are found to be less than the amount or value
which such Financial Establishment is required to repay to the depositor and where the
Designated Court is satisfied, by affidavit or otherwise, that there is reasonable cause
for believing the said Financial Establishment has transferred (whether before or after
the commencement of this Act) any of the property otherwise than in good faith or for
proper consideration, the Designated Court may, by notice, require any transferee of
such property (whether or not he received the property directly from the said Financial
Establishment) to appear on a date to be specified in the notice and show cause why so
much of the transferee’s property as is equivalent to the proper value of the property
transferred should not be attached.

(2) Where the said transferee does not appear and show cause on the specified
date, or where after investigation in the manner provided in sub-section (5) of section
11, the Designated Court is satisfied that the transfer of property to the said transferee
was not in good faith or for proper consideration, the Designated Court shall order the
attachment of so much of the said transferee’s property as in the opinion of the
Designated Court equivalent to the proper value of the property transferred.
 427

Security in lieu of attachment

13. Any Financial Establishment or person whose property has been or is about to be
attached under this Act may at any time, apply to the Designated Court for permission
to give security in lieu of such attachment and where security offered and given is, in the
opinion of the Designated Court, satisfactory and sufficient, it may cancel the ad-
interim order of attachment or, as the case may be, refrain from passing, the order of
attachment.
Administration of property attached

14. The Designated Court may, on the application of any person interested in any
property attached and vested in the Competent Authority under this Act, and after
giving the Competent Authority an opportunity of being heard, make such orders as
the Designated Court considers just and reasonable for –

(a) providing from such of the property attached and vested in the Competent
Authority as the applicant claims an interest, in such sums as may be reasonably
necessary for the maintenance of the applicant and of his family, and for expenses
connected with the defence of the applicant where criminal proceedings have been
instituted against him in the Designated Court under section 3;
(b) safeguarding so far as may be practicable the interest of any business
affected by the attachment and in particular, the interest of any partners in such
business;
(c) discharging any liability, statutory or otherwise, of such financial
establishment.

Appeal

15. Any person including the Competent Authority, aggrieved by an order of the
Designated Court, may appeal to the High Court within thirty days from the date of
order.
Special Public Prosecutor

16. The Government shall, by notification in the Official Gazette, appoint an

advocate of not less than ten years standing as a Special Public Prosecutor for the
purpose of conducting the cases in the Designated Court.

Procedure and powers of Designated Court regarding offences

17.(1) The Designated Court may take cognizance of the offence without the accused
being committed to it for trial and, in trying the accused person, shall follow the
procedure prescribed in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974)
for the trial of sessions cases.
 428

(2) Except the provisions of section 467, all the provisions of the Code of Criminal
Procedure, 1973 (Central Act 2 of 1974), shall, so far as may be, apply to the proceedings
before a Designated Court and for the purpose of the said provisions a Designated
Court shall be deemed to be a Magistrate.

Act to override other laws

18. Save as otherwise provided in this Act, the provisions of this Act shall have effect
notwithstanding anything inconsistent therewith in any other law for the time being in
force or any custom or usage or any instrument having effect by virtue of any such law.

Protection of action taken in good faith

19. No suit or other proceedings shall lie against the Government or the Competent
Authority or an officer or employee of the Government for anything which is in good
faith done or intended to be done under this Act.

Power to make rules

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

(2) All rules made and notifications issued under this Act shall be published in
the Official Gazette and unless they are expressed to come into force on a particular
day, shall come into force on the day on which they are so published.

(3) Every rule made or notification issued under this Act shall, as soon as possible
after it is made or issued, be placed on the Table of the Legislative Assembly, and if
before the expiry of the session in which it is so placed or the next session the
Legislative Assembly agrees in making any modification in any such rule or notification
or the Legislative Assembly agrees that the rule or notification should not be made or
issued, the rule or notification shall, thereafter have effect only in such modified form or
be of no effect, as the case may be, so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under
that rule or notification.
Power to remove difficulties
21.(1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, as occasion arises, by order, do anything, not inconsistent with the
provisions of this Act, which appears to it to be necessary to remove the difficulty:

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

(2) Every order made under this section shall, as soon as may be after it is made,
be laid before the Legislative Assembly of Puducherry.
______
 429

STATEMENT OF OBJECTS AND REASONS FOR ACT NO.1 OF 2005

The last few years have witnessed a rapid growth of non-banking Financial
Establishments and deposit taking unincorporated bodies not covered under the Reserve Bank
of India, Act, 1934 in different parts of the country. In the recent past, certain financial
institutions have also sprung up in this Union Territory with the sole object of receiving
deposits from the public (primarily middle class and the poor) on the promise of unprecedented
high rate of interest but without any obligation to refund the deposits to the investors at the
time of maturity. Many of these Financial Establishments have in fact defaulted in the return of
such deposits to the investors thus paving way for public resentment and insecurity. The
Reserve Bank of India have in fact been seized of the situation prevalent in the country and
have therefore addressed all State Governments and Union Territory Administrations to protect
the interests of such depositors by having a legislation enacted in the matter.
Since this Union Territory has also seen the mushroom growth of such Financial
Establishments in question in the last few years, it is proposed to undertake a legislation which
seeks to protect the deposits made by the public in Financial Establishments not being a
company registered under the Companies Act, 1956, or a corporation or a co-operative society
owned or controlled by the State Government or the Central Government or a banking
company under Banking Regulation Act. The more salient features of the proposed draft
legislation cover the following:
Attachment by the Government of moneys or properties of such Financial
Establishments who default in return of deposits;
Constitution of a Designated Court with powers, among others, to pass orders or issue
directions for the equitable distribution among the depositors of the money realised out of the
property attached.

The Bill seeks to achieve the above objects.

______
 430

THE PUDUCHERRY VALUE ADDED TAX ACT, 2007

(Act No. 9 of 2007)

______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER - I
PRELIMINARY

1. Short title, extent and commencement

2. Definitions
3. Appointment of various authorities under this Act

CHAPTER - II
REGISTRATION
4. Dealers liable for registration
5. Compulsory registration
6. Deemed registration
7. Voluntary registration
8. Procedure for registration
9. Security
10. Granting of exemption in certain cases
11. Amendment of registration certificate
12. Cancellation of registration
13. Issue of permit
CHAPTER - III
INCIDENCE AND LEVY OF TAX

14. Levy and incidence of tax

15. Tax liability for works contract
16. Tax payable
17. Refund of tax paid in certain cases
18. Tax under this Act to be in addition to tax under the Central Sales Tax Act, 1956 or
any other law
19. Payment of tax at compounded rates
20. Exemption from tax
 431

21. Zero rated transactions

22. Stages of levy of taxes in respect of imported and exported goods
23. Burden of proof
CHAPTER - IV
ASSESSMENT
24. Assessment of tax
24 A. Provisions relating to payment of penalty for delay in payment of tax.
25. Fair market value
26. Revised return
27. Adjustment
28. Assessment not voidable
29. Assessment of legal representative
30. Assessment of escaped turnover
31. Power of Government to notify reductions of tax
32. Liability to tax persons not observing restrictions and conditions notified under
section 31
33. Liability of firms
34. Payment of tax when Hindu undivided family, firm or other association of persons
is partitioned or dissolved
CHAPTER – V
COLLECTION AND RECOVERY
35. Collection of tax by dealer
36. Levy of penalty in certain cases
37. Payment and recovery of tax
38. Recovery of penalty
39. Further mode of recovery
40. Provisional attachment of property to protect revenue in certain cases
41. Recovery of tax where business of dealer is transferred
42. Special powers for recovery
43. Withholding issue of statutory forms and seizure of goods

CHAPTER – VI
APPEAL AND REVISION
44. Appellate Tribunal
45. Powers of revision of Commissioner
46. Special powers of Secretary
47. Appeal to the Appellate Assistant Commissioner
48. Power to transfer appeals
49. Appeal to the Appellate Tribunal
50. Appeal to the High Court
51. Revision by High Court
52. Petitions, applications and appeals to High Court to be heard by a Bench of not less
than two judges
 432

CHAPTER – VII
RECORDS AND INVESTIGATION

53. Maintenance of true and correct accounts and records by dealers

54. Accounts to be audited by Chartered Accountants or Cost Accountants
55. Powers to order production of accounts and powers of entry, inspection, etc.
56. Establishment of check-post or barrier and inspection of goods while in transit
57. Possession and submission of certain records by owners of goods vehicle and boats
58. Powers of check post officers

CHAPTER - VIII
OFFENCES AND PENALTIES

59. Offences and penalties

60. Offences by companies
61. Improper use of taxpayer identification number
62. Composition of offences
63. Cognizance of offences, etc.
64. Investigation of offences
65. Chapter XXXVI of the Code of Criminal Procedure, 1973, not to apply to certain
offences
66. Assessment, etc., not to be questioned in prosecution

CHAPTER – IX
MISCELLANEOUS

67. Bar of certain proceedings

68. Limitations for certain suits and prosecutions
69. Bar of suits and proceedings to set aside or modify assessments except as provided
in this Act
70. Appearance before any authority in proceedings
71. Power to make rules
72. Power to summon witnesses and production of documents
73. Power to rectify any error apparent on the face of record
74. Prohibition of disclosure of particulars produced before commercial taxes
authorities
75. Power to amend Schedules
76. Power to remove difficulties
77. Clarification and Advance Rulings
78. Ongoing contracts
79. Powers of subordinate officer to be exercised by higher authorities
80. Refund in certain cases
 433

CHAPTER – X
REPEAL AND SAVING

81. Repeal and saving

82. Repeal of Ordinance 1 of 2007

THE FIRST SCHEDULE

THE SECOND SCHEDULE

THE THIRD SCHEDULE

THE FOURTH SCHEDULE

THE FIFTH SCHEDULE

THE SIXTH SCHEDULE

______
 434

THE PUDUCHERRY VALUE ADDED TAX ACT, 2007

(Act No. 9 of 2007)

(01-12-2007)
AN

ACT

to provide for the levy and collection of value added tax on the sale or purchase
of goods in the Union territory of Puducherry and for matters connected therewith or
incidental thereto.

BE it enacted by the Legislative assembly of Puducherry in the Fifty-eighth year

of the Republic of India as follows:-

CHAPTER - I

PRELIMINARY

Short title, extent and commencement

1.(1) This Act may be called the Puducherry Value Added Tax Act, 2007.
(2) It extends to the whole of the Union territory of Puducherry.
(3) It shall be deemed to have come into force on the 1st day of July, 2007.

Definitions

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

(a) “Appellate Assistant Commissioner” means any person appointed to be

an Appellate Assistant Commissioner of Commercial Taxes under section 3 of this Act;
(b) “Appellate Tribunal” means the Puducherry Value Added Tax Appellate
Tribunal appointed under section 44 of this Act;
(c) “assessee” means a dealer by whom tax is payable either by collecting the
same or otherwise;
(d) “assessing authority” means any officer not below the rank of Assistant
Commercial Tax Officer authorised by the Commissioner to make any assessment
under this Act;
(e) “assessment” means determination of business turnover of a dealer in the
prescribed manner to ascertain the tax liability under this Act by self-assessment,
re-assessment, and assessment by scrutiny and best judgment assessment;
 435

(f) “Assistant Commercial Tax Officer” means any person appointed by the
Commissioner by name or by virtue of his office, to exercise the powers of an Assistant
Commercial Tax Officer;
(g) “Assistant Commissioner” means any person appointed to be an
‘Assistant Commissioner of Commercial Taxes’ under section 3 of this Act;
(h) “authorised” means authorised by the Commissioner to perform any
duties and exercise any powers under this Act;
+[(h-A) “branded means any goods sold under a name or a trade mark registered

or pending registration or pending registration of transfer under the Trade and

Merchandise Marks Act 1958 (Central Act 43 of 1958) or the Trade Marks Act, 1999
(Central Act 47 of 1999).]

(i) “business” includes ---

(i) any trade, commerce, manufacture, or any adventure or concern in the

nature of trade, commerce, manufacture, whether or not such trade,
commerce, manufacture, adventure or concern is carried on with a
motive to make gain or profit and whether or not any profit accrues
from such trade, commerce, manufacture, adventure or concern; and
(ii) any transaction in connection with or incidental or ancillary to such
trade, commerce, manufacture, adventure or concern;

(j) “Capital goods” means plant, machinery and equipment used in the
business including manufacture of goods;
(k) “Casual trader” means a person who, whether as principal, agent or in
any other capacity, undertakes occasional transactions of a business nature involving
the buying, selling, supplying or distributing of goods in the Union territory, whether
for cash or for deferred payment or for commission, remuneration or other valuable
consideration, and who does not reside or has no fixed place of business within the
Union territory;
(l) “Commercial Tax Officer” means any person appointed to be a
Commercial Tax Officer under section 3 of this Act;
(m) “Commissioner” means any person appointed to be a ‘Commissioner of
Commercial Taxes’ under section 3 of this Act;
(n) “dealer” means any person who carries on the business of buying, selling,
supplying or distributing goods, directly or otherwise, whether for cash or for deferred
payment or for commission, remuneration or other valuable consideration, and
includes –

+ Inserted vide Act 6 of 2009 w.e.f 29.09.2009.

 436

(i) a company, Hindu undivided family (HUF), partnership firm or

other association of persons, whether incorporated or un-
incorporated which carries on such business;
(ii) a casual trader;
(iii) a commission agent, a broker or a del-credere agent or an
Auctioneer or a factory or any other mercantile agent, by whatever
name called and whether of the same description as hereinbefore or
not, who carries on the business of buying, selling, supplying or
distributing goods on behalf of any principal;
(iv) every local branch of a firm or company or association situated
outside the Union territory and a non-resident dealer or an agent of
a non-resident dealer;
(v) a person who sells goods produced by him by manufacture or
otherwise;
(vi) a person engaged in the business of transfer, otherwise than in
pursuance of a contract, of property in any goods for cash, deferred
payment or other valuable consideration;
(vii) a person engaged in the business of transfer of property in goods
(whether as goods or in some other form) involved in the execution
of a works contract;
(viii) a person engaged in the business of delivery of goods on hire-
purchase or any system of payment by instalments;
(ix) a person engaged in the business of transfer of the right to use any
goods for any purpose (whether or not for a specified period) for
cash, deferred payment or other valuable consideration;
(x) a person engaged in the business of supplying by way of or as part
of any service or in any other manner whatsoever, of goods, being
food or any other article for human consumption or any drink
(whether or not intoxicating), where such supply or service is for
cash, deferred payment or other valuable consideration;
(xi) a society (including a co-operative society), club or firm or an
association which, whether or not in the course of business, buys or
sells goods from or to its members for cash or for deferred payment
or for commission, remuneration or other valuable consideration;
(xii) an industrial, commercial, banking, insurance or trading
undertaking whether or not of the Central Government or any of
the State Governments or of a local authority; and
(xiii) a department of the Central Government or any State Government
or any Union territory Administration or a local authority by name
of any panchayat, municipality, Development Authority or any
autonomous or statutory body including a Port Trust and the like
 437

which, whether or not in the course of business, buys, sells, supplies

or distributes goods, directly or otherwise, for cash, or for deferred
payment, or for commission, remuneration or other valuable
consideration;

(o) “Deputy Commercial Tax Officer” means any person appointed by the
Commissioner by name or by virtue of his office, to exercise the powers of a Deputy
Commercial Tax Officer;
(p) “Deputy Commissioner” means any person appointed to be a ’Deputy
Commissioner of Commercial Taxes’ under section 3 of this Act;
(q) “document” means title deeds, writing or inscriptions and includes
electronic data stored in tape, disc or such other form that furnishes evidence;
(r) “goods” means all kinds of movable property (other than newspapers,
actionable claims, stocks and shares and securities) and includes live stock, all
materials, commodities and articles including the goods (tangible or intangible) and
property in goods (whether as goods or in some other form) involved in the execution
of a works contract, transfer of right to use or hire-purchase or those goods to be used in
the fitting out, improvement or repair of movable property and all growing crops, grass
or things attached to or forming part of the land which are agreed to be severed before
sale or under a contract of sale;
(s) “Government” means the Administrator of the Union territory appointed by
the President under article 239 of the Constitution;
(t) “Government representative” means any person appointed to be the
Government representative under section 3 of this Act and includes an officer
authorised by the Commissioner under that section to perform the functions on behalf
of the Government in proceedings before the Appellate Tribunal, such as –
(i) to prepare and sign applications, appeals and other
documents;
(ii) to appear, represent, and plead;
(iii) to receive notices and other processes; and
(iv) to do all other acts connected with such proceedings;

(u) “input” means goods purchased by a dealer in the course of his business for
resale including deemed sales or for use in manufacturing, processing, packing of other
goods for sale;
(v) “input tax” means tax on inputs paid or payable;
(w) “Joint Commissioner” means any person appointed to be a ’Joint
Commissioner of Commercial Taxes’ under section 3 of this Act;
 438

(x) “manufacture” includes any activity that brings out a change in an article or
articles as a result of some process, treatment, labour and results in transformation into
a new and different article so understood in commercial parlance having a distinct
name, character, use but does not include any such activity as may be notified by the
Government as not manufacture for the purposes of this clause;
(y) “output” means goods sold by a dealer;
(z) “output tax” in relation to a dealer means the tax charged or chargeable in
respect of goods sold by that dealer;
(za) “place of business” means any place where a dealer purchases or sells
goods and includes warehouses, godowns or other places where a dealer stores his
goods, processes, produces or manufactures goods or any other place where business
activity takes place including the place where the books of accounts are maintained and
kept;
(zb) “prescribed” means prescribed by the rules made under this Act;
(zc) “registered dealer” means a dealer registered under this Act;
(zd) “rules” means rules made under this Act;
(ze) “sale” with all its grammatical variations and cognate expressions means
every transfer of property in goods (other than by way of mortgage, hypothecation,
charge or pledge) by one person to another in the course of business for cash, deferred
payment or other valuable consideration and includes-

(i) a transfer, otherwise than in pursuance of a contract, of property in any

goods for cash, deferred payment or other valuable consideration;
(ii) a transfer of property in goods (whether as goods or in some other
form) involved in the execution of a works contract;
(iii) a delivery of goods on hire-purchase or any system of payment by
instalments;
(iv) a transfer of the right to use any goods for any purpose (whether or
not for a specified period) for cash, deferred payments or other
valuable consideration;
(v) a supply of goods by any unincorporated association or body of
persons to a member thereof for cash, deferred payment or other
valuable consideration;
(vi) a supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human
consumption or any drink (whether or not intoxicating), where such
supply or service, is for cash, deferred payment or other valuable
consideration, and such transfer, delivery or supply of any goods
shall be deemed to be a sale of those goods by the person making the
transfer, delivery or supply and a purchase of those goods by the
person to whom such transfer, delivery or supply is made;
 439

(vii) every transfer of property in goods, by a department of the Central

Government or any State Government or Union territory
Administration or a local authority by name of any panchayat,
municipality, Development Authority or any autonomous or
statutory body including a Port Trust and the like, for cash or for
deferred payment or other valuable consideration, whether or not in
the course of business.
Explanation - I. - Notwithstanding anything to the contrary contained in this Act
or any other law for the time being in force, two independent sales or purchases shall,
for the purpose of this Act, be deemed to have taken place.-
(a) when the goods are transferred from a principal to his selling agent and
from the selling agent to the purchaser;
(b) when the goods are transferred from the seller to a buying agent and from
the buying agent to his principal, if in either case the agent is found ---

(1) to have sold the goods at one rate and to have passed on the sale
proceeds to his principal at another rate; or
(2) to have purchased the goods at one rate and to have passed the same
on to his principal at another rate; or
(3) not to have accounted to his principal for the entire collections or
deductions made by him in the sales or purchases effected by him on behalf of
his principal; or
(4) to have acted for a fictitious or non-existent principal.

Explanation - II - The sale or purchase of goods shall be deemed, for the purposes
of this Act, to have taken place in the Union territory, wherever the contract of sale or
purchase might have been made, if the goods are within the Union territory-

(a) in the case of specific or ascertained goods, at the time the contract of sale
or purchase is made, and
(b) in the case of unascertained or future goods at the time of their
appropriation to the contract of sale or purchase by the seller or by the purchaser,
whether the assent of the other party is prior or subsequent to such appropriation;
(zf) “Schedule” means the Schedules appended to this Act;
(zg) “Secretary” means the Secretary to the Government of Puducherry
in- charge of Commercial Taxes;
(zh) “special economic zone unit” means a unit established in the special
economic zone as notified under the proviso to sub-section (4) of section 3 and
sub-section (1) of section 4 of the Special Economic Zones Act, 2005 (Central Act 28 of
2005) and under section 76-A of the Customs Act, 1962 (Central Act 52 of 1962) and
includes units established under the 100 per cent export oriented scheme, export
processing zone scheme, electronic hardware technology park scheme or software
technology park scheme, as framed under Export and Import Policy, as formulated
 440

under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (Central
Act 22 of 1992) and as amended from time to time;

Explanation. -- For the purposes of this clause, the expression “Special Economic
Zone Unit” will also include a “Co-Developer” and a “Developer” as defined
respectively in clauses (f) and (g) of section 2 of the Special Economic Zones Act, 2005
(Central Act 28 of 2005);

(zi) “tax” means value added tax, and includes any other tax chargeable under
this Act;
(zj) “tax invoice” means a document of sale issued by a dealer to a buyer at the
time of sale describing the goods sold, the quantity, value and tax collected thereon and
such other information as may be prescribed;
(zk) “tax period” means a calendar month;
(zl) “taxable turnover” means the turnover on which a dealer shall be liable to
pay tax as determined after making such deductions from his total turnover and in such
manner as may be prescribed;
(zm) “total turnover” means the aggregate turnover in all goods of a dealer at
all places of business in the Union territory, whether or not the whole or any portion of
such turnover is liable to tax;
(zn) “turnover” means the aggregate amount for which goods are bought or
sold or delivered or supplied or otherwise disposed of in any of the ways referred to in
clause (ze), by a dealer either directly or through another, on his own account or on
account of others, whether for cash or for deferred payment or other valuable
consideration, provided that the proceeds of the sale by a person of agricultural or
horticultural produce, other than tea grown within the Union territory by himself on
any land in which he has an interest whether as owner, usufructuary mortgagee, tenant
or otherwise shall be excluded from his turnover.

Explanation-I. – The expression “agricultural or horticultural produce” shall not

include such produce as has been subjected to any physical, chemical or other process
for being made fit for consumption, save mere cleaning, grading, sorting or drying.

Explanation-II. – Subject to such conditions and restrictions, if any, as may be

prescribed in this behalf –
 441

(a) the amount for which goods are sold shall include any sums charged for
anything done by the dealer in respect of the goods sold at the time of, or before the
delivery thereof;
(b) any cash or other discount on the price allowed, in respect of any sale and
any amount refunded in respect of articles returned by customers shall not be included
in the turnover; and

Explanation-III. – “Turnover” in relation to the transfer of property in goods

(whether as goods or in some other form) involved in execution of works contract
includes such amount as is arrived at by deducting from the amount of valuable
consideration paid or payable to a person for execution of such works contract, the
amount representing labour and other charges incurred and profit accrued not in
connection with transfer of property in goods for such execution;

(zo) “Union territory” means the Union territory of Puducherry;

(zp) “works contract” includes any agreement to carrying out for cash, deferred
payment or other valuable consideration, the building, construction, manufacture,
processing, fabrication, erection, installation, fitting out, improvement, modification,
repair or commissioning, of any movable or immovable property;
(zq) “year” means the financial year; and
(zr) “zero rated transaction” means a transaction of sale of goods on which no
tax is chargeable but credit for the input tax related to such sales is allowable.

Appointment of various authorities under this Act

3. The Government may appoint a Commissioner of Commercial Taxes and as many

Joint Commissioners of Commercial Taxes, Deputy Commissioners of Commercial
Taxes, Appellate Assistant Commissioners of Commercial Taxes, Assistant
Commissioners of Commercial Taxes, a Government representative, Commercial Tax
Officers and such other persons with such designations as may be necessary for the
purposes of performing the functions respectively conferred on them by or under this
Act and such officers shall perform the said functions within such local limits as the
Government or any authority or officer authorised in this behalf may assign to them.
 442

CHAPTER - II

REGISTRATION

Dealers liable for registration

4. Every dealer-

(i) carrying on business before the commencement of this Act; or

(ii) commencing business after the commencement of this Act,
and +[whose total turnover in any year is not less than rupees five lakhs] shall be liable
to be registered under this Act.

Provided that a dealer exclusively dealing in goods mentioned in

the First Schedule shall not be liable for registration.

Insertion of new section 4A.

*[4 A. Notwithstanding anything contained in section 4, but subject to the proviso

thereunder and other provisions of this Act, every dealer who purchase and sell goods
exclusively within the Union Territory and whose total turnover in a year is not less
than rupees ten lakhs shall be liable to be registered under this Act.].

Compulsory registration

5. Notwithstanding anything contained in section 4, the following classes of dealers

shall be liable for registration under this Act, irrespective of their quantum of total
turnover:-

(i) every casual trader;

(ii) every dealer importing goods in the course of business from outside the
territory of India to the Union territory for sale;
(iii) every dealer exporting goods from the Union territory to outside the
territory of India.
(iv) every dealer registered or liable to be registered under the Central Sales Tax
Act, 1956 (Central Act 74 of 1956);
(v) every dealer residing outside the Union territory, but carrying on business in
the Union territory and the agent of such non-resident dealer;

+ Amended vide Act 7 of 2008 w.e.f 01-11-2008.

* Inserted vide Act 7 of 2008 w.e.f 01-11-2008.
 443

(vi) every commission agent, broker, del-credere agent, auctioneer, or any other
mercantile agent, by whatever name called, who carries on the business of buying,
selling, supplying or distributing goods on behalf of any principal;
(vii) every dealer in Indian Made Foreign Liquor including beer; and
(viii) every dealer in Bullion and Specie.

Deemed registration

6. (1) At the time of commencement of this Act, all dealers registered under the
Puducherry General Sales Tax Act, 1967 (Act No. 6 of 1967), shall be deemed to be
provisionally registered under this Act and required to submit the prescribed
application within one month from the date of commencement of this Act for final
registration.

(2) Where any dealer, other than the dealer mentioned under sub-section (1),
liable to be registered under this Act, but failed to do so, shall be deemed to have been
registered by the prescribed authority, as if an application to register had been made.

Voluntary registration

7. A dealer who is not liable to register may also opt for registration in accordance
with the provisions of this Act.

Procedure for registration

8. (1) The Commissioner shall appoint as many number of officers, as may be

required from time to time, not below the rank of Assistant Commercial Tax Officer to
discharge the function of registering authority.

(2) An application for registration shall be made to the registering authority, in

such manner and within such period as may be prescribed and shall be accompanied by
a fee of –

(i) ten thousand rupees in respect of medium and large-scale industries;

(ii) five thousand rupees in respect of dealers in Indian Made Foreign Liquor;
and
(iii) one hundred rupees in respect of other cases.

(3) If the registering authority is satisfied that the application is in order, it shall
register the applicant and issue to him a certificate in the prescribed form specifying all
his places of business.
 444

(4) A certificate issued under sub-section (3) shall be valid for a year and shall be
renewed from year to year on payment of the fee specified in sub-section (2):

Provided that when a dealer has ceased to do business in any year, and gives
notice of the same to the prescribed authority he shall not be liable to pay any
registration fee from the commencement of the following year unless he resumes
business.
(5) A registered dealer may apply to the registering authority for a copy or copies
of the registration certificate for each additional place of business, such as branch,
godown, etc. along with a fee of one hundred rupees for each copy, and if the
registering authority is satisfied that the application is in order, it shall issue to the
registered dealer a copy or copies of the registration certificate.

(6) If the registering authority is satisfied that a registration certificate or a copy

thereof is lost or accidentally destroyed, it shall, on an application made by the
registered dealer accompanied by a fee of one hundred rupees, issue to him a duplicate
of the registration certificate.

(7) No application for registration or for a copy or duplicate of the certificate and
no renewal under this section shall be refused, unless the dealer concerned has been
given an opportunity of being heard.

(8) A registered dealer shall exhibit at each place of his business the registration
certificate, or a duplicate or a copy thereof.

(9) All registered dealers shall quote the registration number in the return,
challan, or other document used for the purposes of this Act.

Security

9. (1) The registering authority shall have power for good and sufficient reasons to
demand from time to time from any registered dealer or from a dealer, who has applied
for registration under this Act, security or as the case may be, additional security for
proper payment of tax and such other amount as may be due, for an amount not
exceeding one-half of the tax payable on the turnover of the dealer for the year or as
estimated by the registering authority.

(2) The whole or a part of the security furnished by a dealer may be adjusted
towards any amount due under this Act or rules framed thereunder:

Provided that the dealer shall be given an opportunity of being heard before
the adjustment of the security furnished by him.
 445

Granting of exemption in certain cases

10. (1) The Government may, from time to time, by notification, exempt from or vary
the operation of anyone or all of the provisions of this Act related to registration in
respect of specified dealers or class of dealers in any specified goods or class of goods.

(2) Any exemption under sub-section (1), -

(i) may extend to the whole of the Union Territory or to any specified area or
areas therein; and
(ii) may be made subject to such restrictions and conditions as may be
specified in the notification.

(3) The Government may, by notification, cancel or vary any notification issued
under sub-section (1).

Amendment of registration certificate

11. (1) (a) A registered dealer shall inform the registering authority,
in the following circumstances within thirty days, if-

(i) he sells or otherwise disposes of his business or any part thereof, or

(ii) there is any change in ownership of the business including any change
in the status, or
(iii) the business is discontinued or the place of business is changed, or
(iv) any change in the name, style or nature of the business,
for necessary amendments to be made in the registration
certificate.

(b) In case of death of the registered dealer, his legal representative shall
inform the registering authority within thirty days for any amendments or may
surrender the registration certificate.

(2) The registering authority on receipt of application for amendment or

otherwise on his own motion may amend the registration certificate or reject the
application, within thirty days of the date of receipt of such application, after making
such enquiry as he deems fit and after giving reasonable opportunity of being heard.

(3) An amendment of a certificate shall take effect from the date of the event
referred to in sub-section (1) which necessitates the amendment, whether or not the
information in that behalf is furnished within the time specified in that sub-section:
 446

Provided that, where in consequence of a change in the ownership of a

business, the liability to pay tax of a dealer ceases, the amendment of the certificate of
registration shall take effect from the date of the submission of application to the
registering authority.

(4) Any amendment of a certificate of registration shall be without prejudice to

any liability for tax or any such amount due or livable or for any prosecution for an
offence under this Act.

(5) If a dealer fails without sufficient cause to comply with the provisions of
sub-section (1), the registering authority may, after giving the dealer a reasonable
opportunity of being heard, direct him to pay a penalty of five hundred rupees in
addition to the penalty chargeable on the tax due at the rate provided under sub-section
(4) of section 37 of this Act.

(6) For removal of doubt, it is hereby mentioned that where a registered dealer, -

(i) effects a change in the name of his business; or

(ii) is a firm and there is a change in the constitution of the firm without
dissolution thereof; or

(iii) is a trustee of a trust and there is a change in the trustees thereof; or

(iv) is a Hindu undivided family and the business of such family is converted
into a partnership business with all or any of the co-parceners as partners
thereof; or

(v) is a firm or a company or a trust or any other organisation and a change

occurs in the management of the organisation such as any change of
directors or managing directors of the company as the case may be,

then merely by reason of the circumstances aforesaid, it shall not be necessary for the
registered dealer to apply for a fresh certificate of registration but it shall be sufficient,
on information being furnished, to get the registration amended.
 447

Cancellation of registration

+[12.(1) In the case of any registered delare, where –

(i) the business has been discontinued, transferred as a whole or otherwise

disposed of, or

(ii) the total turnover for two preceding consecutive years is less than
rupees *[five lakhs], or

(iii) any dealer registered under this Act has committed the offence of
evasion of tax, or

(iv) the dealer dies,

the registering authority may, either of his own motion or on the application of the
dealer, in the case of death on the application by his legal representative, in the
prescribed manner, cancel the registration from such date, as he considers fit having
regard to the circumstances of the case.

(1-A) Notwithstanding anything contained in sub-section (1), the registering

authority shall have power, for good and sufficient reasons, to cancel, modify or amend
any registration certificate issued by it.]

(2) The cancellation of the registration shall not affect the liability of the dealer to
pay tax, any penalty and interest or other amount due for any period prior to the date of
cancellation whether such tax, penalty and interest or other amount is assessed before
the date of cancellation but remains unpaid, or is assessed thereafter.

(3) On cancellation of registration, in any case, where the dealer has availed input
tax credit, any taxable stock and capital goods held shall be deemed to have been sold
and tax shall be payable on such goods at their fair market value, except where the
business is transferred as going concern to another registered dealer and in accordance
with the rules prescribed in this respect under this Act.

(4) A dealer shall, until his registration is cancelled, be liable to pay the
registration fees specified in sub-section (2) of section 8 for every year subsequent to
that in which he is registered.

+ Substituted vide Act 6 of 2009 w.e.f 29.09.2009.

* Amended vide Act 7 of 2008 w.e.f 1.11.2008.
 448

Issue of permit

13. (1) Every registered dealer who transacts business at places other than his
registered place or places of business or employs a travelling salesman or representative
to transact business as aforesaid shall obtain a permit issued under this Act authorizing
himself or, as the case may be, the travelling salesman or representative so to do.

(2) The entire turnover of business carried on under the permit shall be included
and accounted for by the registered dealer in his account and returns and shall be dealt
with as if it were the turnover of business done by the registered dealer himself at the
registered place of business.

(3) Every permit holder shall carry the permit on his person and shall produce it
on demand by any officer empowered by the Government in this behalf. He shall
maintain and produce on demand to any such officer a true and correct account of all
the transactions carried on under the permit and also a stock book showing the
quantities of goods entrusted to him by the registered dealer, the quantities disposed of
from day-to-day by sale or otherwise and the balance on hand at the end of each day.

(4) An application for permit referred to in sub-section (1) shall be made to such
authority, in such manner and within such period as may be prescribed and shall be
accompanied by such fee not exceeding one hundred rupees as may be prescribed.
Explanation. – A separate application with a separate fee shall be necessary for the
registered dealer and for each travelling salesman or representative employed by him.
(5) If the prescribed authority is satisfied that the application is in order, it shall
issue the permit in the form as may be prescribed.

(6) A permit issued under sub-section (5) shall be valid for a year and shall be
renewed from year to year on receipt of an application from the registered dealer
accompanied by such fee not exceeding one hundred rupees as may be prescribed.

(7) If the prescribed authority is satisfied that the permit issued under sub-section
(5) is lost or accidentally destroyed, it shall on application by the registered dealer
accompanied by a fee of one hundred rupees, issue to him a duplicate of the permit.

(8) The prescribed authority shall cancel a permit, -

(a) on requisition made in writing by the registered dealer; and
(b) on the cancellation of the certificate of registration.
(9) The prescribed authority may cancel a permit if the permit holder has
contravened any of the terms or conditions of the permit or any of the provisions of this
Act or the rules made thereunder.
 449

(10) No application for a permit or for a duplicate thereof shall be refused and no
permit shall be cancelled under clause (b) of sub-section (8) unless the registered dealer
has been given a reasonable opportunity of being heard and no permit shall be
cancelled under sub-section (9) unless the permit holder has been given a reasonable
opportunity of being heard.
CHAPTER - III

INCIDENCE AND LEVY OF TAX

Levy and incidence of tax

14. (1) Every dealer registered or liable to be registered under this Act, (other than a
casual trader, a non-resident dealer) whose total turnover for a year exceeds *[rupees
five lakhs] and every casual trader or agent of a non-resident dealer, whatever be his
turnover for the year, shall pay a tax on the taxable turnover in each tax period at the
rate and at the point as specified in the Schedules.

+[(1A)
Notwithstanding anything contained in sub-section (1) of this section, any
dealer registered or liable to be registered under this Act (other than a casual trader, a
non-resident dealer) who purchases and sells goods exclusively within the Union
Territory and whose total turnover in a year is not less than rupees ten lakhs, shall pay
tax on the taxable turnover in each tax period at the rate and at the point as specified in
the Schedules.]

(2) **[Omitted]

++[
“(3) The parts, spares and accessories to the goods shall be taxable at the same
rates as applicable to such goods.”]

* Substituted vide Act 7 of 2008 w.e.f 1.11.2008.

+ Inserted vide Act 7 of 2008 w.e.f 1-11-2008.
** Omitted vide Act 7 of 2008 w.e.f 1-11-2008.
++ Substituted vide Act 6 of 2009 w.e.f 29-092009.
 450

(4) When goods are sold in containers or packed in any packing material, the rate
of tax applicable to such containers or packing materials, as the case may be, shall,
whether the price of the containers or packing materials is charged separately or not, be
the same as those applicable to the goods contained or packed therein and the turnover
in respect of such containers and packing materials shall be included in the turnover of
such goods.
(5) When goods contained in container or packed in packing material is exempt
from tax, then the sale of such containers or packing materials shall also be exempt from
tax.
(6) Notwithstanding anything contained in this Act, every dealer registered
under sub-section (3) of section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of
1956) shall, whatever be the quantum of his turnover, pay tax, for each year, in respect
of the sale of the goods with reference to the purchase of which he has furnished a
declaration under sub-section (4) of section 8 of the said Central Act, in accordance with
the provisions of this Act.

Tax liability for works contract

15. (1) Every dealer who executes any works contract shall be liable to pay tax on the
sale value of goods involved in the execution of works contract whether or not the
transfer of property on such goods occurred in the same form or in some other form, at
the rate specified in Schedules for such goods.

(2) However the dealer executing works contract may opt to pay tax by way of
composition a tax at four per cent on seventy per cent of the value of the consideration
received or receivable. Such option shall be in force for a period of not less than three
years.
(3) Deduction of tax at source in works contract, -

(i) Notwithstanding anything contained in this Act, every person responsible

for paying any sum to any dealer for execution of works contract shall, at the time of
payment of such sum, deduct an amount calculated, at the rates as specified under
section 14 or as specified in sub-section (2) of this section:

Provided that no deduction under clause (i) shall be made where-

(a) no transfer of property in goods (whether as goods or in some other form) is

involved in the execution of works contract; or
(b) transfer of property in goods (whether as goods or in some other form) is
involved in the execution of works contract in the course of inter-State trade or
commerce or in the course of import; or
 451

(c) the dealer produces a certificate in such form as may be prescribed from the
assessing authority concerned that he has no liability to pay or has paid the tax under
section 14 or under sub-section (2) of this section, as the case may be.

+[“Provided further that no such deduction under clause (i) of this sub-section shall
be made, where the amount or the aggregate of the amount paid or credited or likely to
be paid or credited, during the year, by such person to the dealer for execution of the
works contract including civil works contract does not or is not likely to, exceed rupees
one lakh.”]
Explanation.- For the purpose of this section,-
(I) the term ‘person’ shall include-

(i) the Central or a State Government or a Union territory Administration

including National Capital Territory of Delhi;
(ii) a local authority;
(iii) a corporation or body established by or under a Central or State Act or
under any law passed by the Union territory Legislature;
(iv) a company incorporated under the Companies Act, 1956 (Central Act 1 of
1956) including a Central or State Government undertaking;
(v) a society including a co-operative society;
(vi) an educational institution; or
(vii) a trust;

(II) the term “civil works contract” includes civil works of construction of new
buildings, bridge, road, runway, dam or canal including any lining, tiling, painting or
decorating which is an inherent part of the new construction and any repair,
maintenance, improvement or upgradation of such civil works by means of fixing and
laying all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting,
polishing, partition, wall panelling, interior decoration, false ceiling, carpeting and extra
fittings, or any manner of improvement on an existing structure.
(ii) Any person making such deduction shall deposit the sum so deducted to
such authority, in such manner and within such time, as may be prescribed.
(iii) Any person who makes the deduction and deposit, shall within *[three
days] of such deposit, issue to the said dealer a certificate in the prescribed form for
each deduction separately, and send a copy of the certificate of deduction to the
assessing authority, having jurisdiction over the said dealer together with such
documents, as may be prescribed.

+ Inserted vide Act 6 of 2009 w.e.f 29.09.2009

* Substituted vide Act 6 of 2009 w.e.f 29.09.2009
 452

(iv) On furnishing a certificate of deduction referred to in clause (iii), the

amount deposited under clause (ii), shall be adjusted by the assessing authority towards
tax liability of the dealer under section 14 or this section as the case may be, and shall
constitute a good and sufficient discharge of the liability of the person making
deduction to the extent of the amount deposited:

Provided that the burden of proving that the tax on such works contract has
already been deposited and of establishing the exact quantum of tax so deposited shall
be on the dealer claiming the deduction.
(v) Any person who contravenes the provisions of clause (i) or clause (ii),
shall pay, in addition to the amount required to be deducted and deposited, penalty at
two per cent per month of such amount for the entire period of default.
(vi) Where the dealer proves to the satisfaction of the assessing authority that
he is not liable to pay tax under section 14 or under sub-section (2) of this section, the
assessing authority shall refund the amount deposited under clause (ii), after adjusting
the arrears of tax, if any, due from the dealer, in such manner as may be prescribed.
(vii) The tax or penalty or interest under this section shall become due
without any notice of demand on the date of accrual for the payment by the person as
provided under clauses (i) and (ii).
(viii) If any person contravenes the provisions of clause (i) or clause (ii), the
whole amount of tax payable shall be recovered from such person and all provisions of
this Act for the recovery of tax including those relating to levy of penalty and interest
shall apply, as if the person is an assessee for the purpose of this Act.

Tax payable

16. (1) Input Tax Credit (ITC) – For the purpose of calculating the net tax (VAT)
payable by a dealer for each tax period, an input tax credit shall be allowed against the
output tax subject to such conditions or restrictions or adjustments, if any, as may be
prescribed for the purposes of this section:

Provided that, -

(i) for all capital goods except those provided under sub-section (2), the input
tax credit shall be allowed in three years by equal monthly instalments commencing
from the month following the commencement of commercial production or sale of
taxable goods;
(ii) when the input is transferred, either in same form or otherwise, other than
by way of sale and if such transfer is outside the Union Territory, the input tax credit
shall be allowed for the input tax paid in excess of the rate prescribed under sub-section
(1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956).
 453

(2) The input tax credit shall not be allowed, -

(i) when the input is used for manufacture of exempted goods;
(ii) when the goods purchased are consumed for own use (i.e) not connected
with the business of the dealer;
(iii) in respect of following goods:-
(a) Indian Made Foreign Liquor;
(b) sugarcane (sugarcane is taxable at the point of purchase and such
purchase tax is not eligible for input tax credit);
(c) all kinds of pan masala with or without tobacco;
(d) narcotics;
(e) civil structure and immovable goods or properties;
(f) building material used in construction activity, except when used by a
works-contractor;
(g) office equipment;
(h) capital goods purchased prior to the date of commencement of this Act
or capital goods purchased by dealers in IMFL, rectified spirit,
narcotics, pan masala with or without tobacco after the
commencement of this Act;
(i) petrol, diesel, aviation turbine fuel and other motor spirit;
(j) Molasses; and
(k) Rectified spirit;
(iv) for goods purchased prior to twelve months from the date of
commencement of this Act:

Provided that input tax credit will be allowed for the stock held on the date of
commencement of this Act subject to such terms and conditions as may be prescribed:

Provided further that such goods are falling within the list of goods specified in
Part-A of the Second Schedule, Part-A of the Third Schedule or Part-A of the Fourth
Schedule to this Act;
(v) for goods purchased from non-taxable dealers;
(vi) for goods purchased from a dealer paying tax on compounded rate, as
provided under sub-section (2) of section 15 and under section 19 of this
Act; and
(vii) for a casual trader.
+[(viii) for the dealers paying tax under sub-section (2) of section 15 of this Act.]

(3) The input tax credit shall, at no time, exceed the amount of tax payable at the
prescribed rate in the Schedule applicable to the input.

+ Inserted vide Act 6 of 2009 w.e.f 29.09.2009.

 454

(4) Where the dealer has not adjusted the input tax credit or has not made a claim
for refund within the prescribed period from the date of accrual of such input tax credit,
such credit shall lapse to Government.

(5) Where input tax credit is availed by a dealer on a taxable purchase and such
input tax credit shall be liable for reversal in such circumstances and subject to such
conditions as may be prescribed.

(6) No registered dealer shall be entitled to input tax credit in respect of –

(a) goods purchased and accounted for in business but utilized for the purpose
of providing facility to the proprietor or partner or Director including employees and in
any residential accommodation; or

(b) purchase of all automobiles including commercial vehicles, two wheelers

and three wheelers and spare parts for repair and maintenance thereof, unless the
registered dealer is in the business of dealing in such automobile or spare parts; or
(c) purchase of air conditioning units unless the registered dealer is in the
business of dealing in such units.

(7) No input tax credit shall be allowed to any registered dealer in respect of any
goods purchased by him for sale but given away by him by way of free sample or gift or
goods consumed for personal use.

(8) No input tax credit shall be available to a registered dealer for tax paid or
payable at the time of purchase of goods, if such –
(i) goods are not sold because of any theft, loss or destruction for any reason,
including natural calamity. If a dealer has already availed input tax credit
against purchase of such goods there shall be reversal of tax credit; or
(ii) inputs destroyed in fire accident or lost while in storage even before use
in the manufacture of final products; or
(iii) inputs damaged in transit or destroyed at some intermediary stage of the
manufacture.

(9) Calculation of taxable turnover when sale price is inclusive of tax.-

Notwithstanding the provisions in clause (zj) of section 2, when sale price shown in a
tax invoice is inclusive of tax, the taxable turnover for that invoice may be calculated
applying the following formula, namely:-

Tax inclusive of sale proceeds × 100

(100 + Rate of Tax)
 455

Refund of tax paid in certain cases

17. (1) Where a tax at the point of last purchase in the Union territory has been
levied and collected under this Act in respect of goods liable to tax at such point and
where the said purchase ceases to be the last purchase in the Union territory by reason
of a subsequent purchase of such goods by another dealer in the Union territory, the tax
so levied and collected shall be refunded to the dealer concerned in such manner and
subject to such conditions as may be prescribed.

(2) The Government may, by rules made under this section, provide for refund of
tax levied and collected under this Act on any taxable goods in the series of sales or
purchases.
Tax under this Act to be in addition to tax under the
Central Sales Tax Act, 1956 or any other law

18. The provisions of this Act relating to taxation of successive sales or purchases
inside the Union territory shall apply only to sales or purchases inside the Union
territory (other than sales or purchases in the course of inter-State trade or commerce)
and the tax under this Act shall be levied in addition to any tax levied under the Central
Sales Tax Act, 1956 (Central Act 74 of 1956.) or any other law for the time being in force.

Payment of tax at compounded rates

19. +[(1) Notwithstanding anything contained in section 14, any dealer who effects
second and subsequent sales of goods purchased within the Union Territory and whose
total turnover under this Act, 1956 (Central Act 74 of 1956) does not exceed rupees fifty
lakhs in a year may at his option, instead of paying the tax at the rates specified in the
Schedules, pay by way of composition, tax at the rate of 0.5 per cent. of his taxable
turnover :

Provided that,

(i) such dealer will not be eligible for input tax credit;
(ii) the dealers in the following goods are not eligible to exercise the option
under this section,-
(a) Indian Made Foreign Liquor,
(b) Sugarcane,
(c) all kinds of pan masala with or without tobacco,
(d) narcotics, and
(e) rectified spirit.]

+ Substituted vide Act 7 of 2008 w.e.f 1-11-2008.

 456

(2) Any dealer other than a casual trader who estimates his sales turnover under
this Act and under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) for a year to
be not more than rupees fifty lakhs, may apply to the assessing authority to be
permitted to pay the tax under this section and on being so permitted, he shall pay the
tax due during the year in monthly or in prescribed instalments and for that purpose,
shall submit such returns in such manner as may be prescribed:

Provided that any dealer paying tax under any other section and desirous of paying
tax for any year under this section may, at any time, within one month of the
commencement of that year, exercise his option to pay tax under this section and for
that purpose shall submit such returns in such manner as may be prescribed:

Provided further that any dealer paying tax under this section and desirous of
paying tax under any other sections may, at any time, within one month of the
commencement of that year, exercise his option to pay tax in accordance with that
sub-section or section and for that purpose shall submit such returns in such manner as
may be prescribed.

(3) The permission granted by the assessing authority under sub-section (2) shall
continue in force so long as the dealer is eligible to be assessed under this section and
has not withdrawn his option to be so assessed:

Provided that during the course of a year if the turnover of any dealer,
permitted to be assessed under this section, exceeds rupees fifty lakhs, the permission
so granted shall be deemed to have been cancelled from the end of that tax period in
which his sales turnover under this Act and under the Central Sales Tax Act, 1956
(Central Act 74 of 1956) so exceeded.

(4) The tax paid under sub-section (2) shall be subject to such adjustment as may
be prescribed.

(5) A dealer who has been permitted to pay the tax under sub-section (2) shall not
collect any amount by way of tax or purporting to be by way of tax on the sales so long
as he opts to pay the tax as provided under sub-section (1).

Exemption from tax

20. Subject to such restrictions and conditions as may be prescribed, a dealer who
deals in the goods specified in the First Schedule shall not be liable to pay any tax under
this Act in respect of such goods.
 457

Zero rated transactions

21. The sale of goods falling within the scope of section 3 and sub-sections (1), (3)
and (5) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) and *[the
sale of goods to Special Economic Zone Unit as defined under] clause (zh) of section 2
of this Act shall be zero rated transactions as defined under clause (zr) of section 2.

Stages of levy of taxes in respect of imported and exported goods

22. Where in the case of any goods tax is leviable in a series of sales or purchases,
such series shall, --
(a) in the case of goods imported into the Union Territory either from
outside the territory of India or from any other State in India, be deemed to commence
at the stage of the sale or purchase effected immediately after the import of such goods;
(b) in the case of goods exported out of the Union Territory to any place
outside the territory of India or to any other State in India, be deemed to conclude at the
stage of sale or purchase effected immediately before the export of such goods:

Provided that in the case of goods exported out of the Union Territory to any
place outside the territory of India, where the sale or purchase effected immediately
before export of such goods is, under sub-section (3) of section 5 of the Central Sales Tax
Act, 1956 (Central Act 74 of 1956), a sale or purchase in course of export, the series of
sales or purchases of such goods shall be deemed to conclude at the stage of the sale or
purchase immediately preceding such sale or purchase in the course of export.

Burden of proof
23. (1) The burden of proving that any dealer or any of his transactions is not liable
to tax under this Act shall lie on such dealer.
(2) For the purpose of claim of input tax credit, the burden of proving such claim
shall lie on such dealer.
CHAPTER - IV

ASSESSMENT
Assessment of tax

24. (1) Every registered dealer shall file a tax return for each tax period within fifteen
days after end of the period in such manner as may be prescribed.
(2) The returns submitted by the dealer along with tax due thereon shall be
accepted as self-assessed:

* Inserted Act 6 of 2009 w.e.f 29.09.2009.

 458

Provided that the assessing authority may select either at his discretion or as
directed by the Commissioner, any dealer for detailed assessment +[for a tax period or
tax periods] by scrutiny of accounts and may make best judgement assessment if so
required, where-

(a) a person fails to file a return as required under sub-section (1); or

(b) the assessing authority is not satisfied with the correctness and
completeness of a return filed by a person; or

(c) the Commissioner has reasonable ground to believe that a person will
become liable to pay tax under this Act but is unlikely to pay the amount due.

(3) When making any assessment under sub-section (2), the assessing authority
may also direct the dealer to pay in addition to the tax assessed, a penalty not exceeding
double the amount of tax due on the turnover that was not disclosed by the dealer in his
return or, in the case of failure to submit a return, double the amount of tax assessed, as
the case may be:

Provided that before taking action under this sub-section, the dealer shall be
given a reasonable opportunity of being heard.

(4) The assessing Authority shall serve a notice of assessment on completion of

assessment under this section and the dealer shall pay the balance of tax in accordance
with the terms of that notice.

(5) Subject to sub-section (6) of this section, no assessment under this section for
any year shall be made after a period of three years from the end of the year to which
the return under this Act relates.

(6) Where, for any reason, the input tax credit has been availed wrongly or where
any dealer produces false invoice, vouchers, declaration certificate or any other
documents with a view to support his claim of input tax credit or refund, the assessing
authority shall, at any time, within a period of five years from the end of the year to
which the return relates, reverse input tax credit availed and determine the tax due after
making such an enquiry as it may consider necessary:

Provided that no order shall be passed under this sub section without giving
the dealer a reasonable opportunity to show cause against such order.

+ Substituted vide Act 6 of 2009 w.e.f 29.09.2009.

 459

+[Provisions relating to payment of penalty for delay in payment of tax.

24A. Notwithstanding anything contained in the proviso to sub-section (2) of section

24 and in sub-section (1) and (4) of section 37 but subject to the other provisions of sub-
section (1) and (2) of section 24, any tax due or payable under this Act by any dealer or
any person in respect of any tax period shall be paid in such manner and within such
time as prescribed under this Act or under the rules framed under this Act:

Provided that if any such dealer or person fails to pay such tax due or payable along
with the return within the time prescribed therefore, the dealer or person shall pay by
way of penalty, in addition to the amount due or payable, a sum equal to two per cent.
of such amount for each month of default or part thereof after the date prescribed for its
payment subject to the condition that the penalty in respect of part of a month shall be
computed proportionately and for this purpose, a month shall mean a period of thirty
days:

Provided further that if any default is made in payment of such tax, the whole
amount outstanding on the date of default along with the penalty prescribed in the first
proviso shall become immediately due and shall be the first charge on the properties of
the dealer or person liable to pay the tax or penalty and such tax and penalty shall be
recovered as per sub-section (3) of section 37 of this Act.].

Fair market value

25. (1) Where the authority prescribed has reason to believe that any goods of a fair
market value exceeding 5,000/- (Rupees five thousand only) have been sold or
purchased by a dealer, to or from another dealer or person, as the case may be, for a
consideration which is less than fair market price of the goods and that consideration
for such sale or purchase as agreed to between the parties has not been truly stated in
the invoice or delivery challan or any other document relating thereto, with the object of
facilitating the reduction or evasion of the tax payable under this Act, the authority
prescribed may, subject to the provisions of this section, initiate proceedings for seizure
and the acquisition of such goods.

(2) The powers conferred under sub-section (1) shall be exercised by the authority
prescribed in respect of goods sold or purchased which are in transit or in the
possession of the seller or buyer or his agent.

+ Inserted vide Act 6 of 2009 w.e.f 29.09.2009.

 460

(3) In any proceedings under this section in respect of any goods which have been
sold or purchased for a consideration which is less than its fair market price, it shall be
presumed, unless the contrary is proved, that the consideration for such sale as agreed
to between the parties has not been truly stated in the invoice, or sale bill or other
documents related thereto with such object as is referred to in sub-section (1).

(4) Before initiating such proceedings, the authority prescribed shall record his
reasons for doing so and no orders shall be passed under sub-section (1) without giving
the dealer concerned an opportunity of being heard.

(5) No such proceedings shall be initiated unless the authority prescribed has
reason to believe that the fair market price of the goods exceeds the consideration
therefor by more than twenty per cent.

(6) Where any goods are acquired under this section the authority prescribed
shall pay for such acquisition compensation which shall be a sum equal to the aggregate
of the amount of sale price of the goods mentioned in the invoice or delivery challan or
any document related thereto and any expenditure incurred on freight or any other
incidental expenses incurred by the dealer concerned in relation to those goods.

Explanation.-For the purposes of this section, ‘fair market value’ means the price
that the goods would ordinarily fetch on sale in the open market on the date of sale or
despatch or transfer of such goods.

(7) If the assessing authority is satisfied that a dealer has, with a view to evade the
payment of tax, shown in his accounts, sales or purchases of any goods, at prices which
are abnormally low compared to the prevailing market price of such goods, it may at
any time within a period of five years from the expiry of the year to which the tax
relates, assess or re-assess the dealer to the best of its judgement on the turnover of such
sales or purchases after making such enquiry as it may consider necessary and after
giving the dealer a reasonable opportunity to show cause against such assessment.

Revised return

26. If any registered dealer discovers any mistake or error in any return furnished by
him, he may furnish a revised return subject to following conditions:

(a) A dealer shall not be eligible to furnish revised return if any action, either
has been initiated or is pending under section 24 or section 30 or under any other
section of this Act.
(b) If any amount is becoming due for refund as per revised return, such
revised return shall be furnished within three months from the close of the year to
 461

which such return relates to and shall be accompanied by an application stating the
circumstances on which the revised return is filed. The refund will be due only after
confirmation by the assessing authority by issue of a notice as may be prescribed.
(c) If any amount is due to be paid by a dealer as per revised return, such
return may be furnished at any time and will be accepted by the assessing authority, if
the return is accompanied by the proof of payment of balance tax as per the revised
return and penalty as prescribed under sub-section (4) of section 37 of this Act.

Adjustment

27. When a dealer receives in any year any amount, due to price variation which
would have been in his turnover for any previous tax period if it had been received by
him during that period, it shall be deemed to be the turnover during the tax period in
which such amount was received and he shall, during the tax period in which such
amount was received, include such amount in the return separately for the tax period
and the assessing authority shall proceed to assess the tax payable on such amount as
his turnover of that tax period.
Assessment not voidable

28. No assessment or other proceedings purporting to be made, issued or executed

under this Act, shall be, --

(a) quashed or deemed to be void or voidable for want of form; or

(b) affected by reason of mistake, defect or omission therein, if it is in substance
and effect, in conformity with this Act or the rules made thereunder and the person
assessed, or intended to be assessed or affected by the document is designated in it
according to common understanding.
Assessment of legal representative

29. Where a dealer dies, his executor, administrator, or other legal representative
shall be deemed to be the dealer for the purposes of this Act and the provisions of this
Act shall apply to him in respect of the business of the said deceased dealer, provided
that in respect of any tax or fee assessed as payable by any such dealer or any tax or fee
which would have been payable by him under this Act if he had not died, the executor,
administrator or other legal representative shall be liable only to the extent of the assets
of the deceased in his hands.
Assessment of escaped turnover

30. (1) Where, for any reason, the whole or any part of turnover of business of a
dealer has escaped assessment to tax, the assessing authority may, subject to the
provisions of sub-section (3), at any time within a period of five years from the expiry of
the year to which the return under this Act relates, determine to the best of its judgment
the turnover which has escaped assessment and assess the tax payable on such turnover
 462

after making such enquiry as it may consider necessary and after giving the dealer a
reasonable opportunity to show cause against such assessment.

(2) Where, for any reason, the whole or any part of the turnover of business of a
dealer has been assessed at a rate lower than the rate at which it is assessable, the
assessing authority may, at any time within a period of five years from the expiry of the
year to which the return under this Act relates, re-assess the tax due after making such
enquiry as it may consider necessary and after giving the dealer a reasonable
opportunity to show cause against such re-assessment.

(3) In making an assessment under sub-section (1), the assessing authority may, if
it is satisfied that the escape from assessment is due to non-disclosure of assessable
turnover by the dealer, direct the dealer to pay, in addition to the tax assessed under
sub-section (1), a penalty of double the amount of the tax so assessed:
Provided that no penalty shall be imposed under this section unless the dealer
affected has had a reasonable opportunity of showing cause against such imposition.
(4) The powers under sub-section (1) or sub-section (2) may be exercised by the
assessing authority even though the original order of assessment, if any, passed in the
matter has been the subject matter of an appeal or revision.

(5) In computing the period of limitation for assessment or re-assessment under

this section, the time during which the proceedings for assessment or re-assessment
remained stayed under the orders of a Civil Court or other authority shall be excluded.

Power of Government to notify reductions of tax

31. The Government may, by notification, reduce the tax payable under +[omitted]
section 14 of this Act in respect of any goods, subject to such restrictions and conditions
as may be specified in the notification.

Liability to tax persons not observing restrictions and

conditions notified under section 31

32. If any restriction or condition notified under section 31 is contravened or is not

observed by a dealer, the sales or purchases of such dealer may, with effect from the
commencement of the year in which such contravention or non-observance took place,
be assessed to tax or taxes under the appropriate provisions of this Act as if the
provisions of the notification under section 31 did not apply to such sales or purchases.

+ Deemed to have been omitted w.e.f 1.4.2009 vide Act 6 of 2009.

 463

Liability of firms

33.(1) Where any firm is liable to pay any tax or other amount under this Act, the
firm and each of the partners of the firm shall be jointly and severally liable for such
payment.

(2) Where a partner of a firm liable to pay any tax or any amount under this Act
retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax or
other amount remaining unpaid at the time of his retirement and any tax or other
amount due up to the date of retirement, though un-assessed.

Payment of tax when Hindu undivided family, firm or other

association of persons is partitioned or dissolved

34. Where a dealer is a Hindu undivided family, firm, or other association of

persons, and such family, firm or association is partitioned, or dissolved, as the case
may be, --

(a) the tax payable under this Act by such family, firm, or association of
persons for the period up to the date of such partition or dissolution shall be assessed as
if no such partition or dissolution had taken place and all the provisions of this Act
apply accordingly; and
(b) every person who was at the time of such partition, or dissolution a member
or partner of the Hindu undivided family, firm or association of persons and the legal
representative of any such person who is deceased shall, notwithstanding such partition
or dissolution, be jointly and severally liable for the payment of the tax, penalty or other
amount payable under this Act, by such family, firm or association of persons, whether
assessment is made prior to or after such partition or dissolution.
CHAPTER – V

COLLECTION AND RECOVERY

Collection of tax by dealer

35. No person who is not a registered dealer shall collect any amount by way of tax
under this Act; nor shall a registered dealer make any such collection except in
accordance with such conditions and restrictions, if any, as may be prescribed.

Levy of penalty in certain cases

36. If any person after purchasing any goods in respect of which he has made a
declaration fails without reasonable excuse to make use of the goods for the declared
 464

purpose, the assessing authority may, after giving him a reasonable opportunity of
being heard, by order in writing impose upon him by way of penalty, double the
amount of tax payable on the turnover relating to the sale of such goods at a rate which
is equal to the rate prescribed in the Schedules less the tax already paid on such
turnover:
Provided that no prosecution for an offence under section 59 shall be
instituted in respect of the same facts on which a penalty has been imposed under this
section.
Payment and recovery of tax

37. (1) The tax assessed under this Act shall be paid in such manner and in such
instalments, if any, and within such time as may be specified in the notice of
assessment, not being less than twenty-one days from the date of service of the notice. If
default is made in paying according to the notice of assessment, the whole of the
amount outstanding on date of default shall become immediately due and shall be a
first charge on the properties of the dealer liable to pay the tax under this Act.

(2) Where during the pendency of any proceedings under this Act, or after the
completion thereof, any dealer or person creates a charge on, or parts with the
possession by way of sale, mortgage, gift, exchange, or any other mode of transfer
whatsoever, of any of his assets in favour of any other person, with the intention to
defraud the revenue, such charge or transfer shall be void as against any claim in
respect of any tax, or any other sum payable by the dealer as a result of completion of
such proceedings or otherwise:

Provided that, such charge or transfer shall not be void if it is made,-

(a) for adequate consideration and without notice of the pendency of such
proceeding or as the case may be without notice of such tax or any other sum payable
by such dealer; or
(b) with the previous permission of the assessing authority.

(3) Any tax assessed, any fee or any other amount due under this Act from a
dealer or person +[omitted], may, without prejudice to any other mode of collection be
recovered, --

(a) as if it were an arrear of land revenue under the law for the time being in
force in that behalf; or
(b) on application to any Judicial Magistrate, by such Judicial Magistrate as if it
were a fine imposed by him.

+ Omitted vide Act 6 of 2009 w.e.f 29.09.2009.

 465

++[“Provided that no proceedings for such recovery shall be taken or continued as

long as he has, in regard to the payment of such tax, other amount or free, as the case
may be, complied with an order by any of the authorities to whom the dealer or person
has appealed or applied for revision, under sections 45,47, 49, 50, or 51.”]

(4) If the tax assessed under this Act or any instalment thereof is not paid by any
dealer or person within the time specified therefor in the notice of assessment or in the
order permitting payment in instalment, the dealer or person shall pay by way of
penalty, in addition to the amount due, a sum equal to two per cent of such amount for
each month or part thereof after the date specified for its payment.

(5) If any person collects any amount by way of tax and his turnover for the year
falls short of the taxable limit specified, the sum so collected shall be remitted to the
Government and forfeited wholly.

Recovery of penalty
38. Any penalty payable under this Act shall be deemed to be tax under this
Act for the purposes of collection and recovery and shall be without prejudice to the
institution of any proceeding for an offence under this Act, or for the recovery of the
entire amount remaining unpaid under this Act.

Further mode of recovery

39. (1) The assessing authority may at any time or from time to time, by notice in
writing (a copy of which shall be forwarded to the dealer at his last address known to
the assessing authority) require any person from whom money is due or may become
due to the dealer or any person who holds or may subsequently hold money for or on
account of the dealer to pay to the assessing authority, either forthwith upon the money
becoming due or being held at or within the time specified in the notice (not being
before the money becomes due or is held) so much of the money as is sufficient to pay
the amount due by the dealer in respect of arrears of tax or fee or the whole of the
money when it is equal to or less than the arrears of tax or fee.

(2) The assessing authority may at any time or from time to time amend or revoke
any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this
section shall be deemed to have made the payment under the authority of the dealer
and the receipt of the assessing authority shall constitute good and sufficient discharge
of the liability of such person to the extent of the amount referred to in the receipt.

++ Inserted vide Act 6 of 2009 w.e.f 29.09.2009.

 466

(4) Any person making any payment to the dealer after receipt of the notice
referred to in this section shall be personally liable to the assessing authority to the
extent of the payment made or to the extent of the liability of the dealer for the amount
due under this Act, whichever is less.

(5) Where any person to whom a notice under this section is sent objects to it on
the ground that the sum demanded or any part thereof is not due by him to the dealer,
or that he does not hold any money for or on account of the dealer, then nothing
contained in this section shall be deemed to require such person to pay the sum
demanded or any part thereof to the assessing authority.

(6) Any amount which a person is required to pay to the assessing authority or
for which he is personally liable to the assessing authority under this section shall, if it
remains unpaid, be a charge on the properties of the said person and may be recovered
as if it were an arrear of land revenue.

Explanation. - For the purposes of this section, the amount due to a dealer or
money held for or on account of a dealer by any person shall be computed after taking
into account such claims, if any, as may have fallen due for payment by such dealer to
such person and as may be lawfully subsisting.

Provisional attachment of property to protect revenue in certain cases

40. (1) Where, during the pendency of any proceeding for the assessment of any
turnover or for the assessment or reassessment of any turnover which has escaped
assessment, an officer not below the rank of the Assistant Commercial Tax Officer, who
is empowered to perform the function of Collector under the Puducherry Revenue
Recovery Act, 1970 (Act No. 14 of 1970) is of the opinion that for the purpose of
protecting the interests of the revenue it is necessary so to do, may, by order in writing,
attach provisionally in the prescribed manner any property belonging to the dealer or
person:
Provided that the stock-in-trade in the case of a trader and plant and machinery
and inputs in the case of a manufacturer shall not be liable for provisional attachment.

(2) Every such provisional attachment shall cease to have effect after the expiry of
a period of six months from the date of the order made under sub-section (1) of this
section:

Provided that the officer who is exercising powers under sub-section (1) may, for
reasons to be recorded in writing, extend the aforesaid period by such further period or
periods as he thinks fit, so, however, that the total period of extension shall not in any
case exceed two years.
 467

Recovery of tax where business of dealer is transferred

41. Where the ownership of the business of a dealer liable to pay tax or other amount
is transferred, any tax or other amount payable under this Act in respect of such
business and remaining unpaid at the time of the transfer and any tax or other amount
due up to the date of transfer though un-assessed, may, without prejudice to any action
that may be taken for its recovery from the transferor, be recovered from the transferee
as if he was the dealer liable to pay such tax or other amount:

Provided that the recovery from the transferee of the arrears of taxes due for the
period prior to the date of the transfer shall be limited to the value of the assets he
obtained by transfer.
Special powers for recovery

42. For the purposes of recovery of any amount due under this Act, any Joint
Commissioner of Commercial Taxes, Deputy Commissioner of Commercial Taxes or
Assistant Commissioner of Commercial Taxes shall have the powers of a Collector
under the Puducherry Revenue Recovery Act, 1970, (Act No. 14 of 1970) and shall
follow for recovering such amounts the procedures laid down in that Act.

Withholding issue of statutory forms and seizure of goods

43. (1) Notwithstanding that any recovery proceeding initiated under this Act, the
Assessing Officers or any other officers authorised in this regard, shall have power to
withhold issue of statutory or other declaration forms to a dealer from whom any tax or
penalty, interest or any other amount payable under this Act is due.

(2) The Assessing Officer or any other authorised officer empowered in this
regard shall also have the power to seize and confiscate goods being transported by a
dealer from whom tax, penalty, interest or any other amount payable under this Act is
due.
CHAPTER – VI

APPEAL AND REVISION

Appellate Tribunal

44. (1) The Government shall appoint a Judicial Officer who is otherwise qualified to
be appointed as a District and Sessions Judge to be the Appellate Tribunal and to
exercise the functions conferred under the Act:
 468

Provided that the Government may entrust the duties of the Appellate Tribunal
to the Principal District and Sessions Judge, Puducherry.
(2) The Appellate Tribunal shall, with the previous sanction of the Government,
make, by notification, regulations consistent with the provisions of this Act and the
rules made thereunder for regulating the procedure and the disposal of its business.

Powers of revision of Commissioner

45. (1) Any person objecting to an order passed or proceeding recorded under this
Act, for which an appeal has not been provided for in section 47 may, within a period of
thirty days from the date on which a copy of the order or proceeding was served on him
in the manner prescribed, file an application for revision of such order or proceeding to
the Commissioner:

Provided that the Commissioner may admit an application for revision presented
after the expiration of the said period of thirty days, but within a period of ninety days,
if he is satisfied that the applicant had sufficient cause for not presenting the application
within the period of thirty days:

Provided also that no application shall be entertained under this sub-section

unless it is accompanied by a satisfactory proof of the payment of the tax admitted by
the applicant to be due or of such instalment thereof as might have become payable, as
the case may be, and fifty per cent of the difference of the tax assessed by the assessing
authority and the tax admitted by the applicant.

(2) An application for revision shall be in the prescribed form and shall be
verified in the prescribed manner.

(3) On admitting an application for revision, the Commissioner may call for and
examine the record of the order or proceeding against which the application has been
preferred and may make such inquiry or cause such enquiry to be made and, subject to
the provisions of this Act, pass such order thereon as he thinks fit within ninety days
from the date of admission of revision application.

(4) Notwithstanding that an application has been preferred under sub-section (1),
the tax, fee or other amount shall be paid in accordance with the order or proceeding
against which the application has been preferred:

Provided that the Commissioner may, in his discretion, give such directions as he
thinks fit, in regard to the payment of such tax, fee or other amount, if the applicant
furnishes sufficient security to his satisfaction in such form and in such manner as may
be prescribed.
 469

(5) No order under this section shall be passed unless both the applicant and the
authority whose order has been disputed have had a reasonable opportunity of being
heard.
Special powers of Secretary

46. (1) The Secretary may, of his own motion, call for and examine an order passed
or proceeding recorded by an authority under this Act and may make such enquiry or
cause such enquiry to be made and subject to the provisions of this Act may pass such
order thereon as he thinks fit.

(2) The Secretary shall not pass any order under sub-section (1) if, --

(a) the time for appeal or revision against that order has not expired; or
(b) the order has been made the subject of an appeal to the Appellate Tribunal
or of a revision in the High Court; or
(c) more than four years have expired after the passing of the order; or
(d) that is prejudicial to the revenue.

(3) No order under this section shall be passed unless the concerned person and
the authority whose order is under revision have had a reasonable opportunity of being
heard.

(4) In computing the period referred to in clause (c) of sub-section (2), the time
during which the proceedings before the Secretary remained stayed under the orders of
a Civil Court or other competent authority will be excluded.

Appeal to the Appellate Assistant Commissioner

47. (1) Any person objecting to an order passed by the appropriate authority under
section 17, section 24, section 25, section 26, section 27, section 29, sub-section (1), sub-
section (2) or sub-section (3) of section 30, section 32, section 36 section 41, sub-section
(4) of section 55 or sub-section (2) of section 58 or sub-section (3) of section 80 may,
within a period of thirty days from the date on which the order was served on him in
the manner prescribed, appeal against such order to the Appellate Assistant
Commissioner having jurisdiction:

Provided that the Appellate Assistant Commissioner may admit an appeal

presented after the expiration of the said period of thirty days, but within a further
period of thirty days, if it is satisfied that the appellant had sufficient cause for not
presenting the appeal within the period of thirty days:
 470

Provided also that in the case of an order under section 17, section 24, section 25,
section 26, section 27, section 29, sub-section (1), sub-section (2) or sub-section (3) of
section 30, no appeal shall be entertained under this sub-section unless it is
accompanied by satisfactory proof of the payment of the tax admitted by the appellant
to be due or of such instalments thereof as might have become payable, as the case may
be and twelve and half percent of the difference of the tax assessed by the Assessing
Authority and the tax admitted by the appellant:

Provided further that the Appellate Assistant Commissioner may, if he thinks fit
for reasons to be recorded in writing and subject to furnishing of such security as he
deems fit, admit an appeal against such order with part payment or without any
payment of the disputed amount of tax required under this sub-section with a view to
mitigate undue hardship which is likely to be caused to the person if the payments of
such disputed amount is insisted on.

(2) The appeal shall be in the prescribed form and shall be verified in the
prescribed manner.

(3) In disposing of an appeal, the Appellate Assistant Commissioner may, after

giving the appellant a reasonable opportunity of being heard,

(a) in the case of an order of assessment-

(i) confirm, reduce, enhance or annul the assessment or the penalty or

both; or
(ii) set aside the assessment and direct the assessing authority to make a
fresh assessment after such further inquiry as may be directed, or
(iii) pass such other orders as he may think fit; and
(b) in the case of any other order, confirm, cancel or vary such order:

Provided that at the hearing of any appeal against an order of the assessing
authority such assessing authority shall have the right to be heard either in person or by
a representative.

(4) Where as a result of the appeal any change becomes necessary in the order
appealed against, the Appellate Assistant Commissioner may authorise the assessing
authority to amend such order accordingly and on such amendment being made, any
amount overpaid by the appellant shall be refunded to him without interest, or the
further amount of tax, if any, due from him shall be collected in accordance with the
provisions of this Act, as the case may be.
 471

(5) Notwithstanding that an appeal has been preferred under sub-section (1) the
tax shall be paid in accordance with the order of assessment against which the appeal
has been preferred:

Provided that the Appellate Assistant Commissioner may, in its discretion, give
such directions as he thinks fit in regard to the payment of the tax before the disposal of
the appeal, if the appellant furnishes sufficient security to his satisfaction, in such form
and in such manner as may be prescribed.

Power to transfer appeals

48.(1) The Secretary may, either on his motion or on application, for reasons to be
recorded in writing, transfer an appeal pending before an Appellate Assistant
Commissioner to another Appellate Assistant Commissioner.

(2) The Secretary may, when exercising the powers under sub-section (1), direct
the stay of further proceedings before an Appellate Assistant Commissioner.

(3) No order under this section, adversely affecting a person shall be passed
unless that person has had a reasonable opportunity of being heard.

Appeal to the Appellate Tribunal

49. (1) Any person objecting to an order passed by the Appellate Assistant
Commissioner under sub-section (3) of section 47 or an order passed under the proviso
to sub-section (4) of section 77 may, within a period of sixty days from the date on
which the order was served on him in the manner prescribed, appeal against such order
to the Appellate Tribunal:

Provided that the Appellate Tribunal may admit an appeal presented after the
expiration of the said period of sixty days, but within a further period of sixty days, if it
is satisfied that the appellant had sufficient cause for not presenting the appeal within
the period of sixty days:

Provided further that no appeal filed by any person objecting to an order

passed under sub-section (3) of section 47 shall be entertained unless it is accompanied
by satisfactory proof of the payment of tax admitted by the appellant to be due or of
such instalments thereof as might have become payable, as the case may be, and twenty
five percent of difference of the tax as ordered by the Appellate Assistant Commissioner
and the tax admitted by the appellant:
 472

Provided also that the Appellate Tribunal may, if it thinks fit, for reasons to be
recorded in writing and subject to furnishing of such security as the Appellate Tribunal
may deem fit, admit an appeal against the order of the Appellate Assistant
Commissioner with part payment or without any payment of tax as ordered by the
Appellate Assistant Commissioner required under this sub-section with a view to
mitigate undue hardship which is likely to be caused to the person if the payment of
such amount is insisted on.

(2) The appeal shall be in the prescribed form and shall be verified in the
prescribed manner and shall be accompanied by such fee not exceeding one hundred
rupees as may be prescribed.

(3) In disposing of an appeal, the Appellate Tribunal may, after giving the
appellant a reasonable opportunity of being heard,

(a) in the case of an order of assessment –

(i) confirm, reduce, enhance or annul the assessment or penalty or both;

or
(ii) set aside the assessment and direct the assessing authority to make a
fresh assessment after such further inquiry as may be directed; or
(iii) pass such other orders as it may think fit; and

(b) in the case of any other order, confirm, cancel or vary such order:

Provided that at the hearing of any appeal against an order of the Appellate
Assistant Commissioner, the assessing authority shall have the right to be heard either
in person or by a representative.

(4) Where as a result of the appeal any change becomes necessary in the order
appealed against, the Appellate Tribunal may authorise the assessing authority to
amend such order accordingly and on such amendment being made, any amount
overpaid by the appellant shall be refunded to him without interest, or the further
amount of tax, if any, due from him shall be collected in accordance with provisions of
this Act, as the case may be.

(5) Notwithstanding that an appeal has been preferred under sub-section (1) the
tax shall be paid in accordance with the order of assessment against which the appeal
has been preferred:
Provided that the Appellate Tribunal may, in its discretion, give such directions
as it thinks fit in regard to the payment of the tax before the disposal of the appeal, if the
appellant furnishes sufficient security to its satisfaction, in such form and in such
manner as may be prescribed:
 473

Provided further that where an order of stay is made in any proceeding relating
to an appeal filed under sub-section (1), the Appellate Tribunal shall dispose of the
appeal within a period of ninety days from the date of such order:

Provided also that if such appeal is not disposed of within the period specified in
the above proviso, the stay order shall, on the expiry of that period, stand vacated and
no further stay shall be granted.

(6) (a) The appellant or the respondent may apply for review of any order
passed by the Appellate Tribunal under sub-section (3) on the basis of the discovery of
new and important facts which after the exercise of due diligence were not within his
knowledge or could not be produced by him when the order was made:

Provided that no such application shall be preferred more than once in respect of
the same order.

(b) The application for review shall be preferred in the prescribed manner
and within one year from the date on which a copy of the order to which the
application relates was served on the applicant in the manner prescribed and where the
application is preferred by any party other than a departmental authority it shall be
accompanied by such fee not exceeding one hundred rupees as may be prescribed.

(7) Except as provided in the rules made under this Act, the Appellate Tribunal
shall not have power to award costs to either of the parties to the appeal or review.
(8) Every order passed by the Appellate Tribunal under the third proviso to sub-
section (1), sub-section (3), proviso to sub-section (5) and sub-section (6) shall be
communicated in the manner prescribed to the appellant, the respondent, the authority
from whose order the appeal was preferred, the Commissioner if he is not such
authority, and the Secretary.

(9) Every order passed by the Appellate Tribunal under sub-section (3) shall,
subject to the provisions of sub-section (6) and section 51 be final.

Appeal to the High Court

50. (1) Any person objecting to an order passed by the Commissioner under section
45 or by the Secretary under section 46 may, within a period of sixty days from the date
on which the order was served on him in the manner prescribed, appeal against such
order to the High Court:

Provided that the High Court may admit an appeal preferred after the expiry of
the aforesaid period of sixty days, if it is satisfied that the appellant had sufficient cause
for not preferring the appeal within that period.
 474

(2) The appeal shall be in the prescribed form and shall be verified in the
prescribed manner.

(3) In disposing of an appeal, the High Court may, after giving the appellant a
reasonable opportunity of being heard, --

(a) in the case of an order of assessment-

(i) confirm, reduce, enhance, or annul the assessment or penalty or both;

or
(ii) set aside the assessment and direct the assessing authority to make a
fresh assessment after such further inquiry as may be directed; or
(iii) pass such other orders as it may think fit; and

(b) in the case of any other order, confirm, cancel or vary such order:

Provided that at the hearing of any appeal the respondent shall have the right to
be heard either in person or by a representative.

(4) Where as a result of the appeal any change becomes necessary in the order
appealed against, the High Court may authorise the respondent to amend such order
accordingly and on such amendment being made, any amount over paid by the
appellant shall be refunded to him without interest, or the further amount of tax, if any,
due from him shall be collected in accordance with the provisions of this Act, as the case
may be.
(5) Every order passed in appeal under this section shall be final.

(6) Notwithstanding that an appeal has been preferred under sub-section (1), the
tax shall be paid in accordance with the order against which the appeal has been
preferred:

Provided that the High Court may, in its discretion, give such directions as it
thinks fit in regard to the payment of the tax before the disposal of the appeal, if the
appellant furnishes sufficient security to its satisfaction, in such form and in such
manner as may be prescribed.

(7) (a) The appellant or respondent may apply for review of any order passed by
the High Court under sub-section (3) on the basis of the discovery of new and
important facts which after the exercise of due diligence were not within his knowledge
or could not be produced by him when the order was made.
 475

(b) The application for review shall be preferred within such time and in such
manner as may be prescribed, and shall, where it is preferred by the appellant, be
accompanied by a fee of one hundred rupees.

Revision by High Court

51. (1) Within sixty days from the date on which a copy of the order under sub-
section (3) of section 49 is served in the manner prescribed, any person who objects to
such order or the Commissioner or any other authority as may be prescribed may prefer
a petition to the High Court on the ground that the Appellate Tribunal has either
decided erroneously or failed to decide any question of law:

Provided that the High Court may admit a petition preferred after the period of
sixty days aforesaid if it is satisfied that the petitioner had sufficient cause for not
preferring the petition within the said period.

(2) The petition shall be in the prescribed form, shall be verified in the prescribed
manner, and shall, where it is preferred by any party other than the Commissioner or
other authority prescribed in this behalf be accompanied by a fee of one hundred
rupees.
(3) If the High Court, on perusing the petition, considers that there is no
sufficient ground for interfering, it may dismiss the petition summarily:

Provided that no petition shall be dismissed unless the petitioner has had a
reasonable opportunity of being heard.

(4) (a) If the High Court does not dismiss the petition summarily, it shall, after
giving both the parties to the petition a reasonable opportunity of being heard,
determine the question of law raised and either reverse, affirm or amend the order
against which the petition was preferred or remit the matter to the Appellate Tribunal,
with the opinion of the High Court on the question of law raised or pass such order in
relation to the matter as the High Court thinks fit.

(b) Where the High Court remits the matter under clause (a) with its opinion
on the question of law raised, the Appellate Tribunal shall amend the order passed by it
in conformity with such opinion.

(5) Before passing an order under sub-section (4) the High Court may, if it
considers it necessary so to do remit the petition to the Appellate Tribunal, and direct it
to return the petition with its finding on any specific question or issue.
 476

(6) Notwithstanding that a petition has been preferred under sub-section (1), the
tax shall be paid in accordance with the order against which the revision has been
preferred:

Provided that the High Court may, in its discretion, give such direction as it
thinks fit in regard to the payment of the tax before the disposal of the petitions, if the
petitioner furnishes sufficient security to its satisfaction, in such form and in such
manner as may be prescribed.

(7) If as a result of the petition any change becomes necessary in such assessment,
the High Court may direct the assessing authority to amend the assessment
accordingly, and on such amendment being made, any amount overpaid by the
assessee shall be refunded to him without interest, or the further amount of tax due
from him shall be collected in accordance with the provisions of this Act, as the case
may be.

(8) (a) The petitioner or the respondent may apply for review of any order passed
by the High Court under clause (a) of sub-section (4) on the basis of the discovery of
new and important facts which after the exercise of due diligence were not within his
knowledge or could not be produced by him when the order was made.

(b) The application for review shall be preferred within such time, and in such
manner as may be prescribed, and shall where it is preferred by any party other than
the Commissioner or the prescribed authority be accompanied by a fee of one hundred
rupees.

(9) In respect of every petition or application preferred under sub-section (1), or

clause (a) of sub-section (8), the costs shall be at the discretion of the High Court.

Petitions, applications and appeals to High Court to be heard

by a Bench of not less than two judges

52.(1) Every appeal preferred to the High Court under section 50 and every petition
under section 51 shall be heard by a Bench of not less than two judges.

(2) Where an appeal is heard by a Bench of two or more judges, the appeal shall
be decided in accordance with the opinion of such judges or of the majority (if any) of
such judges.

(3) Where there is no such majority, which concurs in a judgement varying or

reversing the order appealed from, such order shall be confirmed:
 477

Provided that where the Bench hearing the appeal is composed of two judges and
judges composing the Bench differ in opinion on a point of law, they may state the
point of law upon which they differ and the appeal shall then be heard upon that point
only by one or more other judges of the High Court and such point shall be decided
according to the opinion of the majority, if any, of the judges who have heard the
appeal including those who first heard it.

CHAPTER – VII
RECORDS AND INVESTIGATION
Maintenance of true and correct accounts and records by dealers

53. Every person registered under this Act, every dealer liable to get himself
registered under this Act, and every other dealer who is required so to do by the
prescribed authority by notice served in the prescribed manner shall keep and maintain
in relation to his business true and correct accounts and such other records as may be
prescribed in any of the languages specified in the Eighth Schedule to the Constitution,
or in English, showing such particulars as may be prescribed; and different particulars
may be prescribed for different classes of dealers.

Accounts to be audited by Chartered Accountants or Cost Accountants

54. Every dealer whose total turnover in a year exceeds rupees fifty lakhs shall get
his accounts audited by Chartered Accountants or Cost Accountants and shall submit a
copy of the audited statement of accounts and certificate in the manner prescribed.

Powers to order production of accounts and

powers of entry, inspection, etc.
55. (1) Any officer empowered by the Commissioner in this behalf may, for the
purposes of this Act, require any dealer to produce before him the accounts, registers,
records and other documents and to furnish any other information relating to his
business.

(2) All accounts, registers, records and other documents maintained by a dealer
in the course of his business, the goods in his possession and his offices, shops,
godowns, vessels or vehicles shall be open to inspection at all reasonable times by such
officer:
Provided that no residential accommodation not being a place of business-cum-
residence shall be entered into and searched by such officer except on the authority of a
search warrant issued by a Judicial Magistrate having jurisdiction over the area, and all
searches under this sub-section shall, so far as may be, be made in accordance with the
provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).
 478

(3) If any such officer has reason to suspect that any dealer is attempting to evade
the payment of any tax, fee or other amount due from him under this Act, he may, for
reasons to be recorded in writing, seize such accounts, registers, records or other
documents of the dealer as he may consider necessary, and shall give the dealer a
receipt for the same. The accounts, registers, records and documents so seized shall be
retained by such officer only for so long as may be necessary for their examination and
for any inquiry or proceeding under this Act:

Provided that such accounts, registers and documents shall not be retained for
more than thirty days at a time except with the permission of the next higher authority.

(4) Any such officer shall have power to seize and confiscate any goods which
are found in any office, shops, godowns, vessel, vehicle, or any other place of business
or any building or place of the dealer, but not accounted for by the dealer in his
accounts, registers, records and other documents, maintained in the course of his
business:
Provided that before ordering the confiscation of goods under this sub-section,
the officer shall give the person affected an opportunity of being heard and make an
inquiry in the prescribed manner:

Provided also that the officer ordering the confiscation shall give the person
affected option to pay in lieu of confiscation ---

(a) in cases where the goods are taxable under this Act, in addition to the tax
recoverable, a sum of money not exceeding one thousand rupees or double the amount
of tax recoverable, whichever is greater; and
(b) in other cases, a sum of money not exceeding one thousand rupees.

Establishment of check-post or barrier and inspection

of goods while in transit

56. If the Government considers that with a view to prevent or check evasion of tax
under this Act, in any place or places in the Union territory, it is necessary so to do, it
may, by notification, direct the setting up of a check-post or the erection of a barrier or
both, at such place or places as may be notified.

Possession and submission of certain records

by owners of goods vehicle and boats

57. (1) In case of goods vehicle the owner or other person in charge of a goods
vehicle shall carry with him ---
 479

(i) bill of sale or delivery note;

(ii) goods vehicle record or trip sheet; and
(iii) such other documents as may be prescribed.

(2) In case of boats the owner or other person in charge of boat shall carry with
him -
(i) bill of sale or delivery note;
(ii) log book; and
(iii) such other documents as may be prescribed.

Powers of check post officers

58. (1) At every check-post or barrier mentioned in section 56 or at any other place
when so required by any officer empowered by the Government in this behalf, the
driver or any other person in charge of any vehicle or boat shall stop the vehicle or boat,
as the case may be, and keep it stationary as long as may reasonably be necessary, and
allow the officer-in-charge of the check-post or barrier, or the officer empowered as
aforesaid, to examine the contents in the vehicle or boat and inspect all records relating
to the goods carried, which are in the possession of such driver, or other person in
charge, who shall, if so required, give his name and address and the name and address
of the owner of the vehicle or boat as well as those of the consignor and the consignee of
the goods.

(2) The officer-in-charge of the check-post or barrier, or the officer empowered as

aforesaid shall have powers, --

(a) to detain the goods vehicles or the goods;

(b) to direct the driver or any other person to furnish any security;
(c) to collect the tax payable and to levy a penalty of three times the amount of
tax payable;
(d) to seize and confiscate and dispose of any goods in accordance with the
rules made under this Act,

where there is a reason to believe that the goods are not properly accounted for, in the
documents accompanying the goods or where the identity of consignor or consignee is
not clearly ascertainable from the documents accompanying the goods.
 480

CHAPTER - VIII

OFFENCES AND PENALTIES

Offences and penalties

59. (1) Any person who, ---

(a) being an assessee under this Act, fails to submit a return as required by the
provisions of this Act, or the rules made thereunder, or
(b) being a person obliged to register himself as a dealer under this Act, does
not get himself registered, or
(c) being a person obliged to obtain a permit under this Act, does not obtain
such permit, or
(d) collects any amount by way of tax under this Act, in contravention of the
provisions of section 35,
shall on conviction by a Judicial Magistrate, not below the rank of a Second-Class
Judicial Magistrate, be liable to a fine of rupees one thousand.

(2) Any person who, ---

(a) wilfully submits an untrue return, or, not being already an assessee under
this Act, fails to submit a return as required by the provisions of this Act, or the rules
made thereunder, or
(b) fraudulently evades the payment of any tax assessed on him or any fee or
other amount due from him under this Act, or
(c) dishonestly objects to a notice issued to him under sub-section (1) of section
39, or
(d) wilfully acts in contravention of any of the provisions of this Act, or
(e) after purchasing any goods in respect of which he has made a declaration as
prescribed but fails without reasonable excuse to make use of goods for the declared
purpose,
shall on conviction by a Judicial Magistrate of the First Class, be liable to a fine of
rupees two thousand and in the event of a second or subsequent conviction, to simple
imprisonment which may extend to six months or a fine of rupees three thousand or
both.

(3) Any person who, ---

(a) prevents or obstructs inspection, entry, search or seizure by an officer

empowered under section 55, or
 481

(b) prevents or obstructs inspection of any goods vehicle, or boat carrying

goods, by an officer-in-charge of a check post or barrier or any officer empowered
under section 58,

shall on conviction, be liable to simple imprisonment which may extend to six months
or a fine of rupees five thousand or both.

Offences by companies

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

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

(2) Notwithstanding anything contained in sub-section (1), where an offence

under this Act or the rules made thereunder has been committed by a company, and it
is proved that the offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or other
officer of the company, such director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.

Explanation.- For the purpose of this section, -

(a) ‘Company’ means a body corporate and includes a firm or other association
of persons or body of individuals whether incorporated or not; and
(b) ‘Director’ in relation to a firm means a partner in the firm, and in relation to
any association of persons or body of individuals, means any member controlling the
affairs thereof.
Improper use of taxpayer identification number

61. A person who knowingly uses a false tax payer identification number, including
the tax payer identification number of another person with a view to evade or avoid or
shift the liability to pay the tax in a return or other document prescribed or used for the
purposes of this Act, is guilty of an offence and liable on conviction to a fine not
exceeding fifty thousand rupees or to imprisonment for a term not exceeding one year,
or both.
 482

Composition of offences
62. (1) The prescribed authority may, whether on application made to it in this
behalf or otherwise, give any person who has committed or is reasonably suspected of,
having committed an offence under this Act, or any rule framed under this Act, option
to pay within a specified period by way of composition of such offence,-

(a) where the offence consists of the failure to pay, or the evasion of, any tax
recoverable under this Act, in addition to the tax so recoverable, a sum of money not
exceeding five thousand rupees or double the amount of the tax recoverable, whichever
is greater; and
(b) in other cases, a sum of money not exceeding five thousand rupees.

(2) Where the prescribed authority compounds an offence under this section, he
shall serve an order on the dealer who committed the offence specifying, -

(a) the offence committed; and

(b) the sum of money to be paid and due date for payment,
and such order shall be final and not subject to any appeal.

(3) On payment of such sum of money and the tax, if any, recoverable under this
Act, no prosecution for an offence under this Act shall be instituted in respect of the
same offence on which a composition has been allowed under this section.
(4) Where the prescribed authority, on application made under sub-section (1),
passes an order refusing to allow composition under this section, it shall record in
writing the reasons therefor and furnish to the applicant on request a brief statement of
the same unless in any case the prescribed authority is of the opinion that it will not be
in the public interest to furnish such statement.

Cognizance of offences, etc.

63.(1) No court shall take cognizance of any offence under this Act or rules made
thereunder except with the previous sanction of the Commissioner.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973

(Central Act 2 of 1974) all offences punishable under this Act or the rules made
thereunder shall be cognizable and bailable.

Investigation of offences
64. (1) Subject to such conditions as may be prescribed, the Commissioner may
authorise either generally or in respect of a particular case or class of cases any officer or
person subordinate to him to investigate all or any of the offences punishable under this
Act.
 483

(2) Every Officer or person so authorised shall, in the conduct of such

investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973
(Central Act 2 of 1974) upon an officer-in-Charge of a police station for the investigation
of a cognizable offence.

Chapter XXXVI of the Code of Criminal Procedure, 1973,

not to apply to certain offences

65. Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 (Central Act
2 of 1974) shall apply to-

(a) any offence punishable under this Act; or

(b) any other offence which under the provisions of that Code may
be tried along with such offence;

and every offence referred to in clause (a) or clause (b) above may be taken cognizance
of by the Court having jurisdiction under this Act as if the provisions of that Chapter
were not enacted.

Assessment, etc., not to be questioned in prosecution

66. (1) The order of assessment made under this Act shall be conclusive evidence in
any prosecution or other proceedings.

(2) The validity of the assessment of any tax, or of the levy of any fee or other
amount, made under this Act, or the liability of any person to pay any tax, fee or other
amount so assessed or levied shall not be questioned in any Criminal Court in any
prosecution or other proceeding, whether under this Act or otherwise.

CHAPTER – IX

MISCELLANEOUS
Bar of certain proceedings

67. (1) No suit, prosecution or other proceeding shall lie against any officer or
servant of the Government for any act done or purporting to be done under this Act,
without the previous sanction of the Government.

(2) No officer or servant of the Government shall be liable in respect of any such
act in any civil or criminal proceedings if the act was done in good faith in the course of
the execution of duties or the discharge of functions imposed by or under this Act.
 484

Limitations for certain suits and prosecutions

68. No suit shall be instituted against the Government and no suit, prosecution or
other proceeding shall be instituted against any officer or servant of the Government in
respect of any act done or purporting to be done under this Act, unless the suit,
prosecution or other proceeding is instituted within six months from the date of the act
complained of.

Bar of suits and proceedings to set aside or modify

assessments except as provided in this Act

69. No suit or other proceedings shall, except as expressly provided by or under this
Act, be instituted in any Court to set aside or modify any assessment made under this
Act.
Appearance before any authority in proceedings

70. Any person which is entitled to appear before any authority other than the High
Court in connection with any proceedings under this Act may be represented before
such authority –

(a) by his relative or a person regularly employed by him, if such relative or

person is duly authorised by him in writing in this behalf; or
(b) by a legal practitioner; or
(c) subject to such conditions, as may be prescribed, by an accountant or a
value added tax practitioner possessing the prescribed qualifications and duly
authorised by him in writing in this behalf.

Power to make rules

71.(1) The Government may 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 ---

(a) all matters expressly required or allowed by this Act to be prescribed;

(b) determining the total turnover of a dealer for the purposes of this Act;
(c) the assessment of tax under this Act, of business which is discontinued or
the ownership of which has changed;
(d) the assessment of tax under this Act, of any Hindu undivided family, firm
or other association of persons, where such family, firm or association is partitioned or
dissolved;
(e) the assessment of tax under this Act, of business owned by minors and
other incapacitated persons or by persons residing outside the Union territory;
 485

(f) the assessment of a business owned by any person whose estate or any
portion of whose estate is under the control of the Court of Wards, the Administrator-
General, the Official Trustee, or any receiver or manager appointed by or under any
order of a Court;
(g) the administration of the check-post set up and barriers erected under this
Act and the regulation of the work therein;
(h) the disposal of goods confiscated or acquired under this Act and of the
proceeds thereof;
(i) compelling the submission of return;
(j) the form of, and the particulars to be contained in, any declaration to be
given under this Act, the authority from whom, the conditions subject to which and the
fees subject to payment of which any form of declaration prescribed may be obtained,
the manner in which the form shall be kept in custody and records relating thereto
maintained, the manner in which any such form may be used and any such declaration
may be furnished;
(k) the duties and powers of officers appointed for the purpose of enforcing
the provisions of this Act;
(l) the circumstances in which and the extent to which, fees paid in pursuance
of section 49 may be refunded;
(m) the issue of bills or cash memoranda, the class or classes of dealers who
should maintain counterfoils for the same and the particulars to be shown in, and the
manner of maintenance of, such counterfoils and the time for which they should be
preserved;
(n) the maintenance of purchase bills or accounts of purchases and sales by
dealers and the time for which they should be preserved;
(o) the issue of delivery notes in respect of goods delivered or transferred to
retail dealers in pursuance of sales effected to them, the form and manner of their issue
and the time for which they should be preserved; and
(p) generally regulating the procedure to be followed and the forms to be
adopted in proceedings under this Act.

(3) (a) In making a rule under sub-section (1) or sub-section (2) the Government
may provide that a person guilty of a breach thereof shall be punishable with fine
which may extend to one thousand rupees, and where the breach is continuing one,
with further fine which may extend to one hundred rupees for every day after the first
during which the breach continues.

(b) No Court inferior to that of a Judicial Magistrate of the Second-Class shall

inquire into or try any offence consisting of a breach of a rule.

(4) (a) All rules made under this Act shall be published in the Official Gazette
and, unless they are expressed to come into force on a particular day, shall come into
force on the day on which they are so published.
 486

(b) All notifications issued under this Act shall be published in the Official
Gazette and unless they are expressed to come into force on a particular day, shall come
into force on the day on which they are so published.

(5) Any rule made or any notification issued under this Act may be made or
issued so as to be retrospective to any date not earlier than the commencement of this
Act.

(6) Every rule made or notification issued under this Act shall, as soon as may be
after it is made or issued, be laid before the Legislative Assembly, Puducherry, while it
is in session for a total period of fourteen days, which may be comprised in one session
or in two or more successive sessions, and, if before the expiry of the session in which it
is so laid or the successive sessions aforesaid, the Legislative Assembly makes any
modification in the rule or notification or decides that any such rule or notification
should not be made or issued, that rule or notification shall thereafter have effect only
in such modified form or be of no effect as the case may be, so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule or notification.

Power to summon witnesses and production of documents

72. (1) An assessing authority or an appellate or revising authority (including the

Appellate Tribunal) or any officer of the Commercial Taxes Department not lower in
rank than an Assistant Commercial Tax Officer shall, for the purposes of this Act, have
all the powers conferred on a Court under the law relating to civil procedure for the
time being in force, for the purpose of –

(a) summoning and enforcing the attendance of any person

and examining him on oath or affirmation; and
(b) compelling the production of any document.

(2) Any assessing officer or authorised officer may require any bank or clearing
and forwarding house or agency, transporting agency, shipping agency or steamer
agency or air cargo agency or courier agency to furnish such information, document or
statement for the purpose of any proceedings under this Act.

Power to rectify any error apparent on the face of record

73. (1) An assessing authority or revising authority or the Appellate Tribunal may, at
any time within three years from the date of any order passed by it, rectify any error
apparent on the face of the record:
 487

Provided that no such rectification which has the effect of enhancing an

assessment or any penalty shall be made unless such authority has given notice to the
dealer and has allowed him a reasonable opportunity of being heard.

(2) Where such rectification has the effect of reducing an assessment or penalty,
the assessing authority shall make refund, if any, which may be due to the dealer.

(3) Where any such rectification has the effect of enhancing an assessment or
penalty, the assessing authority shall give the dealer a revised notice of assessment or
penalty and thereupon the provisions of this Act, and the rules made thereunder shall
apply as if such notice had been given in the first instance.

Prohibition of disclosure of particulars produced before

commercial taxes authorities

74. (1) All particulars contained in any statement made, return furnished or
accounts, registers, records or documents produced under the provisions of this Act or
in any evidence given or affidavit or deposition made, in the course of any proceeding
under this Act or in any record of any proceedings relating to the recovery of a demand,
prepared for the purposes of this Act shall be treated as confidential and shall not be
disclosed.

(2) Nothing contained in sub-section (1) shall apply to the disclosure of any such
particulars –

(i) for the purpose of prosecution under the Indian Penal Code (Central
Act 45 of 1860) or under this Act in respect of any such statement, return, accounts,
registers, records, documents, evidence, affidavit or deposition; or
(ii) to any person enforcing the provisions of this Act, where it is
necessary to disclose the same to him for purposes of this Act or the Indian Penal Code
(Central Act 45 of 1860);
(iii) occasioned by the lawful employment under this Act of any process
for the recovery of any demand; or
(iv) to a Civil Court in any suit to which the Government are party and
which relates to any matter arising out of any proceeding under this Act; or
(v) occasioned by the lawful exercise by a public servant of his powers
under the law relating to stamp duty for the time being in force to impound or
otherwise collect the stamp duty on an insufficiently stamped document; or
(vi) to an officer of –
(a) the Government of India; or
(b) the Government of any State in India with which an agreement
for disclosure on a reciprocal basis has been entered into by the
Government; or
 488

(vii) to an officer subordinate to the Government other than an officer of

the Commercial Taxes Department of the Union territory, after obtaining –

(a) the permission of the Assistant Commissioner, the Deputy

Commissioner or the Joint Commissioner of Commercial Taxes
as the case may be, where such particulars are to be furnished
by an officer subordinate to the Assistant Commissioner of
Commercial Taxes; and

(b) the permission of the Secretary, where such particulars are to be

furnished by the Commissioner, the Joint Commissioner, the
Deputy Commissioner or by an Assistant Commissioner of
Commercial Taxes:

Provided that such particulars shall be furnished under this clause only in
exceptional cases and any officer obtaining such particulars shall keep them as
confidential, use them as confidential and use them only in the lawful exercise of the
powers conferred by or under any enactment.

(3) Nothing contained in this section shall prevent the publication of the final
assessment of any party in the prescribed manner.

Power to amend Schedules

75.(1) The Government may, by notification, alter, add to, or cancel any of the
Schedules.

(2) Where, a notification has been issued under sub-section (1), there shall, unless
the notification is, in the meantime, rescinded, be introduced in the Legislative
Assembly of Puducherry, as soon as may be, but in any case during the next session of
the Legislative Assembly following the date of the issue of the notification, a Bill on
behalf of the Government to give effect to the alteration, addition or cancellation, as the
case may be, of the Schedules specified in the notification and the notification shall
cease to have effect,---

(a) if a Bill as aforesaid is not introduced in the next session of the Legislative
Assembly following the date of issue of the notification, on the date following the date
on which such session comes to an end;
(b) if a Bill as aforesaid is so introduced, when such Bill,--
 489

(i) becomes law whether with or without modifications, or

(ii) is rejected by the Legislative Assembly, except as respects things done

or omitted to be done before the notification so ceases to have effect:

Provided that if the notification under sub-section (1) is issued when the
Legislative Assembly is in session, every endeavour shall be made to introduce such a
Bill in the Legislative Assembly during that session:

Provided also that where for any reason a Bill as aforesaid does not become law
within six months from the date of its introduction in the Legislative Assembly, the
notification shall cease to have effect on the expiration of the said period of six months
except as respect things done or omitted to be done before the notification so ceases to
have effect.

(3) All references made in this Act to any of the Schedules shall be construed as
relating to the Schedules for the time being amended in exercise of the powers
conferred by this section.

Power to remove difficulties

76. (1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order not inconsistent with the provisions of this Act, remove the
difficulty:

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

(2) Every order made under this section shall, as soon as may be, after it is made,
be laid before the Legislative Assembly of Puducherry and the provisions of sub-
sections (4) and (6) of section 71 shall apply in respect of such order as they apply in
respect of a notification issued under this Act.
 490

Clarification and Advance Rulings

77.(1) The Commissioner may, subject to the provisions of this Act, constitute a
Union territory level ‘Authority for Clarification and Advance Rulings’ consisting of, a
Chairman in the rank of the +[Deputy Commissioner or Assistant Commissioner] of
Commercial Taxes and two other members not below the rank of the Commercial Tax
Officer to clarify, in the manner prescribed, any aspect of the implementation of this
Act.
(2) No application shall be entertained where the question raised in the
application, --

(i) is already pending before any officer or authority of the Department or

Appellate Tribunal or any Court;
(ii) relates to a transaction or issue which is designed apparently for the
avoidance of tax:
Provided that no application shall be rejected under this sub-section unless an
opportunity has been given to the applicant of being heard and where the application is
rejected, reasons for such rejections shall be recorded in the order.
(3) No officer or any other authority of the Department shall proceed to decide
any issue in respect of which an application has been made by an applicant under this
section and is pending.

(4) The order of the authority shall be binding, --

(i) on the applicant who had sought clarification;

(ii) in respect of the goods or transaction in relation to which a clarification
was sought; and
(iii) on all the officers other than the Commissioner,

provided the dealer does not file an appeal before the Appellate Tribunal within
sixty days of the ruling in the manner prescribed.

(5) The authority for clarifications shall have power to review, amend or revoke
its rulings at any time for good and sufficient cause by giving an opportunity to the
affected parties. An order giving effect to such review or amendment or revocation shall
not be subject to the period of limitation.

+ Substituted vide Act 6 of 2009 w.e.f 29.09.2009.

 491

(6) The Commissioner may also refer any matter for opinion of the Authority for
clarification without prejudice to his authority.

Ongoing contracts

78. (1) Where a contract or an agreement was concluded between two or more
parties before the commencement of this Act and no provision for tax under this Act
was made in the contract, the selling dealer shall pay tax due on any sale liable to tax
made under such contract after the commencement of this Act.

(2) Where a contract is concluded after the commencement of this Act, and no
provision relating to tax was made in the contract, the contract price shall be deemed to
include tax due under this Act and the selling dealer shall account for the tax due.

Powers of subordinate officer to be exercised by higher authorities

79. The powers conferred by this Act and the rules made thereunder on any of the
officers appointed under section 3 or under any other provision of this Act may also be
exercised by any of the officers superior to the officers so empowered, subject to any
instructions issued by the Commissioner in this regard.

Refund in certain cases

80.(1) (a) A dealer effecting sales falling under sub-section (1), sub-section (3) or
sub-section (5) of section 5 of the Central Sales Tax Act, 1956, (Central Act 74 of 1956) in
any tax period shall be eligible for refund of tax, if the input tax credit exceeds the
amount of tax payable subject to condition that the exports have been made outside the
territory of India. The excess of tax shall be refunded within a period of ninety days on
a claim made on a return prescribed to the authority prescribed subject to the
provisions of the Act and the rules made thereunder.

(b) In all other cases, the dealer shall make a claim for refund of the excess
credit on the return in the form prescribed where such dealer has declared an excess
credit for 24 consecutive months or more or in the event of cancellation of registration.
The excess of tax shall be refunded within ninety days of the date of receipt of the claim.
(c) The claim for refund under this section shall be made on the return in the
form prescribed.
(d) A dealer, who has paid tax in excess of the amount due for a tax period,
may claim a credit in the next return.
(2) Where a dealer claiming the refund is required by the authority prescribed to
provide accounts or records to substantiate the claim but fails to do so in a manner
satisfactory to the authority prescribed within seven days of issue of notice, the time
period specified in sub-section (1) for making the refund shall not apply.
 492

(3) Where a claim of a dealer is not accepted either in full or in part, the authority
prescribed, shall send a notice in writing, to the dealer.

(4) A dealer aggrieved by the decision under sub-section (3) may file an appeal as
prescribed in this Act.

(5) The tax paid under this Act on the purchases made by specialised agencies of
the United Nations Organisation and Consulates or Embassies of any country located in
the Union territory shall be refunded in such manner as may be prescribed.

(6) Where the authority prescribed is required to refund an amount of tax to a

dealer as a result of, --

(a) a decision under section 47 of this Act; or

(b) a decision of the Appellate Tribunal under section 49 of this Act; or
(c) a decision of the High Court under sections 50 and 51 of this Act,
such refund shall be made within a period of ninety days from the date of the receipt of
the order.

(7) Where such refund is not made within the stipulated time, the amount of
refund shall carry interest at the rate of one per cent per month or part thereof on the
amount of the refund for the period of delay.

CHAPTER – X

REPEAL AND SAVING

Repeal and saving

81.(1) The Puducherry General Sales Tax Act, 1967 (Act No. 6 of 1967) is hereby
repealed.

(2) Any action or proceedings already initiated under the repealed Act shall
continue to be valid till the final disposal.

(3) The provisions of this Act shall not affect any right, title, obligation or liability
already acquired, accrued or incurred under the repealed Act, and subject thereto,
anything done or any action taken including any appointment, notice, order, in exercise
of any power conferred by that Act, shall be valid till specifically rescinded or
withdrawn.
 493

(4) Any person liable to pay any tax, fee, penalty, interest or other amount under
the repealed Act for any period before the commencement of this Act, shall continue to
be liable and such tax, fee, penalty, interest or other amount shall be collected under the
provisions of this Act.

(5) All arrears of tax, interest, penalty, fee or other amount due at the
commencement of this Act, whether assessed or levied before such commencement or
assessed or levied after such commencement, may be recovered as if such tax, penalty,
interest, fee or other amount is assessed or levied under the provisions of this Act and
all methods of recovery including levy of interest, penalty or prosecution provided
under this Act shall apply to such arrears as if such amounts are assessed, levied and
demanded in accordance with the provisions of the repealed Act.

(6) Notwithstanding anything contained in sub-sections (1) and (2), -

(a) any application, appeal, revision or other proceedings made or preferred to

any officer or authority under the repealed Act and pending at the commencement of
this Act shall continue to be heard and disposed by the said officer or authority subject
to the same terms and conditions prescribed for this purpose under the repealed Act
until such officer is appointed or such authority is constituted under this Act;

(b) any application, appeal, revision or other proceedings arising out of the
repealed Act after the commencement of this Act will also continue to be heard and
disposed by the officer appointed or authority constituted under the repealed Act
subject to the same terms and conditions prescribed for this purpose under the repealed
Act until such officer is appointed or such authority is constituted under this Act;

(c) any application, appeal, revision or other proceedings arising under this Act
will also be heard and disposed by the officer appointed or authority constituted under
the repealed Act subject to the terms and conditions prescribed for this purpose under
this Act until such officer is appointed or such authority is constituted under this Act;
and
(d) as soon as the officer appointed or the authority constituted under this Act
who have jurisdiction to entertain such application, appeal, revision or other
proceedings under this Act assumes charge, then all the applications, appeal, revision
or other proceedings pending both under the repealed Act and under this Act shall
respectively be transferred to them and disposed by them under this Act:

Provided that where such applications, appeal, revision or other proceedings

made or preferred to any officer or any authority which have arisen under the repealed
Act and transferred under this clause shall continue to be regulated subject to the terms
and conditions prescribed for this purpose under the repealed Act until it is finally
disposed.
 494

(7) Any order delegating any power under the repealed Act or rules framed
thereunder to any person appointed, by any designation, immediately before the
commencement of this Act shall continue in force until that order is amended, varied or
rescinded.

(8) Any rule, regulations, notifications or orders made or issued under the
repealed Act and continuing in force on the day immediately before the commencement
of this Act, shall continue to be in force on or after the commencement of this Act in so
far as they are not inconsistent with the provisions of this Act.

(9) Notwithstanding anything contained in sub-section (1), the industrial unit

existing prior to the commencement of this Act and are exempted from payment of tax
due under the repealed Act would continue to be exempt from payment of tax under
this Act till the expiry of the period of exemption as prescribed under that Act. Such
dealer will not be eligible for the input tax credit until the period of exemption expires.
However the input tax credit will be allowed if such dealer opts to pay tax due under
this Act. The dealer may exercise this option by submitting in writing before the
assessing officer within one month of the commencement of this Act and the option
once exercised cannot be revoked.

Repeal of Ordinance 1 of 2007

82. (1) The Puducherry Value Added Tax Ordinance, 2007 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the
said Ordinance shall be deemed to have been done or taken under the corresponding
provisions of this Act.
 495

THE FIRST SCHEDULE

LIST OF GOODS EXEMPTED

[See section 20]

[Link]. DESCRIPTION OF GOODS

1. Agricultural implements manually operated or animal driven

2. Aids and implements used by handicapped persons
3. All Bangles (except those made of precious metals)
4. All seeds other than oil seeds
5. Appalam, vadam, vathal and pappad
6. Aquatic feed, poultry feed and cattle feed including grass, hay, straw,
supplement and husk of pulses, concentrates and additives, wheat bran and
deoiled cake
7. Atta, Maida, Suji, Besan
8. Betel leaves
9. Books, periodicals and journals including maps, chart and globe
10. Bread (Branded or otherwise)

10A +[Omitted]

11. Charcoal
12. Charkha, Ambar Charkha; handlooms and handloom fabrics and Gandhi Topi
13. Coarse grains
14. Coconut fibre
15. Coconut in shell and separated kernel of coconut other than copra
16. Condoms and contraceptives
17. Cotton and silk yarn in hank
18. Curd, Lussi, butter milk and separated milk

18A +[Omitted]

19. Earthen pot

++[20. Electrical energy sold to the Government of India or consumed by the
Government of India or sold for consumption in the construction,
maintenance or operation of railway by the Government of India, electrical
energy sold or consumed for domestic and agricultural purposes and
electrical energy sold to commercial consumers up to 300 units per month].
21. Firewood except Casurina and Eucalyptus timber
22. Fishnet, fishnet fabrics, fish seeds, fishing boats, fishing requisites and
prawn/shrimp seeds
______________________________________________________________________
+ Omitted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
++ Substituted vide Act 7 of 2010 w.e.f 7-11-2009.
 496

23. Food grains including rice and pulses

24. Fresh milk and pasteurized milk
25. Fresh plants, saplings and fresh flowers
26. Fresh vegetables and fruits
27. Garlic and ginger

28. Goods taken under customs bond for re-export after manufacturing or otherwise

+[28A Goods which are sold by any dealer, namely:-

(1) Aluminium utensils
(2) Asafoetida (Hing)
(3) Bagasse
(4) Broomstick
(5) Butter without any brand name
(6) Camphor
(7) Candles
(8) Chillies, coriander, turmeric
(9) *[Omitted]
(10) Energy saving choolas, solar cookers, waste conversion devices for producing energy
and wind mill for generation of electricity
(11) *[Omitted]
(12) Gauze or bandage cloth
(13) Goods manufactured by Blacksmiths
(14) Gum Benzoin including instant sambrani in all forms, agarbothi, dhoop, dhupakathi,
dhuphati
(15) *[Omitted]
(16) Hand-pumps and its spare parts
(17) Hurricane lights, kerosene lamp, Kerosene stoves, lantern, petromax, chimney lamp
(18) Jamakalams
(19) Kerosene sold through PDS
(20) Life saving drugs as notified by the Government
(21) *[Omitted]
(22) Panchamirtam, namakkati, vibhuthi, sandanam and prasadam.
(23) safety matches
(24) Saree falls, lace, ribbon
(25) Shikaki and shikakai powder
(26) Software with complete Tamil or Malayalam or Telugu version
(27) Tamarind, tamarind seed and powder
(28) UNICEF greeting cards, diaries and calendars
(29) Vermicelli
(30) Writing instruments, pencils, sharpeners, pens, ballpoint pens, refills, stainless steel nibs,
color pencils, blackboards, dusters, geometry boxes and dissection boxes.]

28B *[Omitted]

29. Gur and Jaggery

30. Hand made safety matches

+ Inserted vide Act 1 of 2008 w.e.f 1.7.2007.

* Omitted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 497

[Link]. DESCRIPTION OF GOODS

31. Handicrafts produced and directly sold by self help group

32. Human blood, blood plasma including blood components
33. Husk including groundnut husk
34. Indigenous handmade musical instruments
35. Items covered by Public Distribution System (except kerosene)
36. Khadi garments/goods and made-ups as notified by Government
37. Kumkum, bindi, alta and sindur
38. Mat
*[39A Meat, fish, prawn and other aquatic products when not cured or frozen and eggs.

39B Livestock other than live chicken sold in Mahe Region]

40. National flag
41. Non-judicial stamp paper sold by Government Treasuries; postal items like envelope, post
card etc., sold by Government; rupee note, when sold to the Reserve Bank of India and
cheques, loose or in book form

**[41.A Notebooks and examination pads].

42. Organic manure

42A +++[Omitted].
43. Plantain leaves
44. Puffed rice commonly known as ‘pori’, flattened or beaten rice commonly known as ‘aval’,
parched rice commonly known as ‘Khoi’, parched paddy or rice coated with sugar or gur
commonly known as ‘Murki’
45. Raw wool

45A +++[Omitted].
46. Salt (branded or otherwise)
47. Semen including frozen semen
48. Silk worm laying, cocoon and raw silk
49. Slate and slate pencils
+[50. Sugar and textile covered under the Additional Duties of Excise (Goods of Special
Importance) Act, 1957 (Central Act 58 of 1957) and un-manufactured tobacco, bidis and
tobacco used in the manufacture of bidis.]
51. Tapioca
52. Tender green coconut
53. +[Toody and Neera].

54. Water other than-

(i) aerated, mineral, distilled, medicinal, ionic, battery, de-
mineralised water, and
(ii) Water sold in sealed container
55. Bio-inputs like Bio-fertilizers, micro-nutrients, plant growth promoters
++[ 56. Liquor including IMFL and imported liquor from foreign countries.]

+ Substituted vide Act 1 of 2008 w.e.f 1.7.2007.

++ Inserted vide Act 1 of 2008 w.e.f 1.7.2007
* Substituted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
** Inserted vide Act 8 of 2010 w.e.f 1.3.2010
+++ Omitted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 498

THE SECOND SCHEDULE

PART - A

LIST OF GOODS TAXABLE AT THE RATE OF ONE PER CENT

AT EACH POINT OF SALE

[See section 14 (1)]

[Link]. DESCRIPTION OF GOODS

1. Articles of Gold, silver and precious metals including jewellery made

from gold, silver and precious metals.
2. Gold, silver and other precious metals.
3. Precious stones.

PART – B

LIST OF GOODS TAXABLE AT THE RATE OF ONE PER CENT

AT THE POINT OF LAST PURCHASE

[See section 14 (1)]

[Link]. DESCRIPTION OF GOODS

1. Old and beaten gold or silver jewellery.

 499

THE THIRD SCHEDULE

PART - A

LIST OF GOODS *[TAXABLE AT THE RATE OF FIVE PER CENT]

AT EACH POINT OF SALE
[See section 14 (1)]

Sl.
DESCRIPTION OF THE GOODS
No.
1. Acids
2. Agricultural implements not operated manually or not driven by animal
3. All equipments for communications such as, Private Branch Exchange (P.B.X.)
and Electronic Private Automatic Branch Exchange (E.P.A.P.B.X) etc.
4. All intangible goods like copyright, patent, replenishment license, etc.
5. All kinds of bricks including fly ash bricks, refractory bricks and ashphaltic
roofing, earthen tiles
6. All metal castings
7. All processed fruit, vegetables etc. including fruit jams, jelly, pickle, fruit
squash, paste, fruit drink and fruit juice (whether in sealed containers or
otherwise)
8. All types of yarn other than cotton and silk yarn in hank and sewing thread
9. All utensils including pressure cookers/pans except utensils made of precious
metals
10. Aluminium conductor steel reinforced (A.C.S.R.)
11. Aluminium, aluminium alloys, their products (including intrusions) not
elsewhere mentioned in this Schedule or in any other schedule
12. Animal Hair – but to be a part of entry of skin & hide or raw wool
13. Arecanut powder and betel nut
14. Articles made of rolled gold and imitation gold including imitation jewellery
15. Artificial silk yarn, polyester fibre yarn and staple fibre yarn
16. +[Deleted]

17. Bamboo
18. Basic chromium sulphate, sodium bichromate, bleach liquid
19. Bearings
20. Bed sheet, pillow cover and other made-ups

+ Deleted vide Act 1 of 2008 w.e.f 1.7.2007.

* Substituted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 500

Sl.
DESCRIPTION OF THE GOODS
No.
21. Beedi leaves
22. Beltings
23. Bicycles, tri-cycles, cycle rickshaws and parts, tyres and tubes thereof
24. Rodenticide, insecticide and weedicide
25. Bio-mass briquettes
26. Bitumen
27. Bone meal
28. Buckets made of iron and steel, aluminium, plastic or other materials (except
precious materials)
29. Bulk drugs
30. +[Deleted]
31. Capital goods
32. Castor oil
33. Centrifugal, mono-bloc and submersible pump sets and parts thereof
34. Chemical fertilizers, pesticides, weedicides, insecticides
35. Clay including fire clay, fine china clay and ball clay
36. Coal Tar
37. Coffee beans and seeds, coffee powder and all forms of coffee, cocoa pod, tea
including green tea leaf and chicory
38. Coir and coir products excluding coir mattresses
39. Combs
40. Computer stationery
41. Cottage cheese
42. Cotton and cotton waste
43. Crucibles
44. Cups and glasses of paper and plastics
45. Declared goods as specified in section 14 of the Central Sales Tax Act, 1956
(Central Act 74 of 1956)
46. Drugs and medicines including vaccines, syringes and dressings, medicated
ointments produced under drugs licence, light liquid paraffin of IP grade,
Medical equipment/devices and implants
47. Dyes, that is to say; (i) Acid dyes (ii) Ahzanee dyes (iii) Bases (iv) Basic dyes
(v) Direct dyes (vi) Naphthols (vii) Nylon dyes (viii) Optical whitening agents
(ix) Plastic dyes (x) Reactive dyes (xi) Sulphur dyes (xii) Vat dyes (xiii) All
other dyes not specified elsewhere in the schedule

+ Deleted vide Act 1 of 2008 w.e.f 1.7.2007.

 501

Sl.
DESCRIPTION OF THE GOODS
No.
48. +[Deleted]

*[48A. Edible oil, vegetable oil, oil cake, deoiled cake.]

49. Electrodes
50. Embroidery or zari articles, that is to say, (i) imi, (ii) zari, (iii) kasab, (iv)
sama, (v) dabka, (vi) chumki, (vii) gota, (viii) sitara, (ix) naqsi, (x) kora,
(xi) glass bead, (xii) badla, (xiii) glzal, (xiv) embroidery machines, (xv)
embroidery needles.
51. Exercise book, graph book and laboratory note book
52. Feeding bottle, nipples
53. Ferrous and non-ferrous metals and alloys and their scraps; non-metals such
as aluminium, copper, zinc and extrusions of those
54. Fibres of all types and fibre waste
55. Coal ash, coal boiler ash, coal cinder ash, coal powder, clinker
56. Fly ash
57. Fried and roasted grams
58. Gypsum of all forms and description
59. +[Deleted]

59(A) +[Deleted]
*[59B. Handicrafts].
60. +[Deleted]

61. Herb, bark, dry plant, dry root, commonly known as jari booti and dry flower
62. +[Deleted]

63. Honey
64. Hose pipes and fittings thereof
65. Hosiery goods
66. Ice
67. Industrial cables (high voltage cables, PVC or XLPE insulated wires and
cables, jelly filled cables, optical fibre cables)
68. Industrial inputs and packing materials as mentioned in the Appendix
69. Insulators
70. IT products including computers, telephone and parts thereof, teleprinter
and wireless equipment and parts thereof and cell phones, DVD and CD
71. Kattha
72. +[Deleted]

73. +[Deleted]

+ Deleted vide Act 1 of 2008 w.e.f 1-7-2007.

* Inserted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 502

Sl.
DESCRIPTION OF THE GOODS
No.
74. Khandsari
75. Khoya/khoa
76. Knitting wool
77. Lac and shellac
78. Leaf plates and cups
79. Lignite
80. Lime, lime stone, products of lime, dolomite and other white washing materials not
elsewhere mentioned in this schedule or in any other schedule
81. Linear alkyl benzene, L.A.B. Sulphonic Acid, Alfa Olefin Sulphonate

*[81A. Live chicken sold in Mahe Region]

82. Maize starch, maize gluten, maize germ and oil

*[82A. Masala Powder]

83. Metals, alloys, metal powders including metal pastes of all types and grades and
metal scraps other than those falling under declared goods
84. Mixed PVC stabilizer
85. Moulded plastic footwear, Hawai chappals and straps thereof
86. Napa Slabs (Rough flooring stones) and shahabad stones
87. Newars
88. Nuts, bolts, screws and fasteners
89. Oil seeds
90. Old cars
91. Ores and minerals
92. (i) Paraffin wax of all grade standards other than food grade standard including
standard wax and match wax; (ii) Slack wax
93. Paper and newsprint
94. Paper and paper board
95. Pens of all kinds including refills
96. Pipes of all varieties including fittings
97. Pizza Bread
98. Plastic granules, plastic powder and master batches
99. Porridge
100. Printed material including diary, calendar etc. including works contract which are in
the nature of printing works
101. Printing ink excluding toner and cartridges
102. Processed meat, poultry and fish
103. Pulp of bamboo, wood and paper
104. Rail wagons, engines, coaches and parts thereof
105. Readymade garments

* Inserted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 503

Sl.
DESCRIPTION OF THE GOODS
No.
106. Refractory monolithic
107. Renewable energy devices and spare parts including windmill for water
pumping ++[omitted]
108. Rice bran
109. River sand and grit
110. Rubber that is to say – (a) raw rubber, latex, dry ribbed sheet of all RMA
Grades, tree lace, earth scrap, ammoniated latex, latex concentrate,
centrifugal latex, dry crepe rubber, dry block rubber, crumb rubber,
skimmed rubber and all other qualities and grades of latex (b) Reclaimed
rubber all grades and qualities (c) Synthetic rubber
111. +[Deleted]

112. Sewing machine, its parts and accessories

113. Ship and other water vessels including Non-mechanised boats used by
fisherman for fishing
114. Silk fabrics (subject to abolition of rental agreement) excluding handloom
silks unless covered by AED
115. Skimmed milk powder and UHT milk
116. Solvent oils other than organic solvent oil
117. Spectacles, parts and components thereof, contact lens & lens cleaner
118. *[Spices of all varieties and forms including cumin seed, aniseed].
119. Sports goods excluding apparels and footwear
120. Starch
121. +[Deleted]

122. Tools
123. Toys excluding electronic toys
124. Tractors, Threshers, harvesters and attachments and parts thereof
125. Transformer
126. Transmission wires and towers
127. Umbrella except garden umbrella
128. Vanaspati (hydrogenated Vegetable Oil)
129. +[Deleted]

130. Waste paper

131. Wet dates
132. Wooden crates
133. Writing Ink
134. +[Deleted].

+ Deleted vide Act 1 of 2008 w.e.f 1.7.2007.

++ Omitted vide Act 1 of 2008 w.e.f 1.7.2007.
* Substituted vide Act 1 of 2008 w.e.f 1.7.2007.
 504

PART - B

LIST OF GOODS +[ TAXABLE AT THE RATE OF FIVE PER CENT ]

AT THE POINT OF FIRST PURCHASE

[See section 14 (1)]

Sl.
DESCRIPTION OF GOODS
No.
1. Cotton
2. Groundnut not falling under Entry 45 of Part-A of this Schedule

PART - C

LIST OF GOODS +[ TAXABLE AT THE RATE OF FIVE PER CENT ]

AT THE POINT OF LAST PURCHASE

[See section 14 (1)]

Sl.
DESCRIPTION OF GOODS
No.
1. Raw hides and skins
2. Wattle bark, avaram bark, konam bark, wattle extract, Quobracho and chestnut
extract

*[PART – D

LIST OF GOODS +[ TAXABLE AT THE RATE OF FIVE PER CENT ]

AT THE POINT OF LAST SALE

Sl. No. Description of goods

(1) (2)
1 Electrical energy, other than those specified
against Sl. No. 20 of the First Schedule.].

* Inserted vide Act 7 of 2010 w.e.f 7.11.2009

+ Inserted vide Notification published in [Link]. No. 68/F2/2011 dt 31.12.2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01.01.2012
 505

THE FOURTH SCHEDULE

PART – A

LIST OF GOODS *[TAXABLE AT THE RATE OF FOURTEEN

AND HALF PER CENT] AT EACH POINT OF SALE

[See section 14(1) and section 14(3)]

Sl.
DESCRIPTION OF GOODS
No.
1. Goods not specified elsewhere in any of the Schedules

PART – B

LIST OF GOODS TAXABLE AT THE RATE OF *[FOURTEEN

AND HALF PER CENT] AT THE POINT OF LAST PURCHASE

[See section 14 (1)]

Sl.
DESCRIPTION OF GOODS
No.
1. Sugarcane

* Substituted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 506

THE FIFTH SCHEDULE

*[PART - A]

LIST OF GOODS TAXABLE AT THE RATE OF

TWENTY PER CENT AT THE POINT OF FIRST SALE
[See Section 14 (1)]

Sl.
No. DESCRIPTION OF GOODS

1. Molasses
2. Petrol and diesel
3. Rectified sprit
+[4. Arrack pattai]

*[PART - B

LIST OF GOODS TAXABLE AT THE RATE OF

TWENTY PER CENT. AT EACH POINT OF SALE

[See section 14 (1)]

Sl. No. description of goods
1. Cigarettes.].

THE SIXTH SCHEDULE

LIST OF GOODS TAXABLE AT THE RATE OF THIRTY FIVE

PER CENT AT THE POINT OF FIRST SALE
[See section 14 (1)]

Sl.
DESCRIPTION OF GOODS
No.
1. ++[deleted]

+ Inserted vide Act 1 of 2008 w.e.f 01.07.2007.

++ Deleted vide Act 1 of 2008 w.e.f 01.07.2007.
* Inserted vide Act 7 of 2009 w.e.f 25.08.2009
 507

APPENDIX
[See Entry No.68 under Part A of the Third Schedule]
*[(The Industrial Inputs and packing materials to be taxed @ 5%)]
As provided under
the Central Excise
Tariff Act, 1985
(Central Act 5 of
[Link].
1986) Description
Sub-
Heading
Heading
No.
No.

(1) (2) (3) (4)

1. 15.01 … Animal (including fish) fats and oils, crude,

refined or purified
2. 15.06 … Glycerol, Crude, Glycerol Waters and
Glycerol lyes
3. 15.07 … Vegetables waxes (other than triglycerides),
beeswax, other insect waxes and spermaceti,
whether or not refined or coloured degras,
residues resulting from the treatment of fatty
substances or animal or vegetable waxes
4. 15.08 … Animal or vegetable fats boiled, oxidized,
dehydrated, sulphurised, blown, polymerized
by heat in vacuum or in inert gas or otherwise
chemically modified, inedible mixtures or
preparations of fats and oils of this chapter
5. 17.02 … Liquid glucose (nonmedicianal)
6. … 2204.10 Denatured ethyl alcohol of any strength
7. 26.02 … Manganese ores and concentrates, including
ferruginous manganese ores and concentrate
with a manganese content of 20% or more,
calculated on the dry weight
8. 26.03 … Copper ores and concentrates
9. 26.04 … Nickel ores and concentrates
10. 26.05 … Cobalt ores and concentrates
11. 26.06 … Aluminium ores and concentrates

* Substituted vide Notification published in [Link]. No. 68/F2/2011 dt. 31-12-2011 of the Finance Department,
Puducherry and this shall come into force w.e.f 01-01-2012.
 508

(1) (2) (3) (4)

12. 26.07 … Lead ores and concentrates

13. 26.08 … Zinc ores and concentrates
14. 26.09 … Tin ores and concentrates
15. 26.10 … Chromium ores and concentrates
16. 26.11 … Tungsten ores and concentrates
17. 26.12 … Uranium or Thorium ores and concentrates
18. 26.13 … Molybdenum ores and concentrates
19. 26.14 … Titanium ores and concentrates
20. 26.15 … Niobium, Tantalum, Vanadium or Zirconium
ores and concentrates
21. 26.16 … Precious metal ores and concentrates
22. 26.17 … Other ores and concentrates
23. 26.18 … Granulated slag (slag sand) from the
manufacture of iron or steel
24. … 2707.10 --- Benzole
25. … 2707.20 --- Toluole
26. … 2707.30 Xylole
27. … 2707.40 Naphthalene
28. … 2707.50 Phenols
29. … 2707.60 Creosote oils
30. … 2710.90 Normal Paraffin
31. … 2711.12 Butadine
32. … 2714.10 Bitumen
33. 28.01 … Fluorine, Chlorine, Bromine and Iodine
34. 28.02 … Sulphur sublimed or precipitated colloidal
sulphur
35. 28.03 … Carbon (carbon blacks and other forms of
carbon not elsewhere specified or included)
36. 28.04 … Hydrogen, rare gases and other non-metals
37. 28.05 … Alkali or alkaline-earth metals, rare earth
metals, scandium and yitrium whether or not
intermixed or inter alloyed mercury
38. 28.06 … Hydrogen chloride (hydrochloric acid)
chlorosulphuric acid
39. 28.07 … Sulphuric acid and anhydrides thereof, Olcum
 509

(1) (2) (3) (4)

40. 28.08 … Nitric acid, sulphonitric acids

41. 28.09 … Diphosphorus, pentaoxide, phosphoric acid and
polyphosphoric acids
42. 28.10 … Oxides or boron; boric acids
43. 28.12 … Halides and halide oxides of non-metals
44. 28.13 … Sulphides of non-metals; commercial
phosphorus trisulphide
45. 28.14 … Ammonia, anhydrous or in aqueous solution
46. 28.15 … Sodium hydroxide (caustic soda), potassium
hydroxides (caustic potash); peroxides of
sodium or potassium
47. 28.16 … Hydroxide and peroxide of magnesium; oxides,
hydroxides and peroxides of strontium or
barium
48. … 2818.10 Alumium hydroxides
49. 28.19 … Chromium oxides and hydroxides
50. 28.20 … Manganese oxides
51. … 2821.10 Iron oxides and hydroxides
52. 28.22 … Cobalt oxides and hydroxides, commercial
cobalt oxides
53. 28.23 … Titanium oxide
54. 28.25 … Hydrazine and hydroxylamine and their
Inorganic salts, other Inorganic bases, other
metal oxides, hydroxides and peroxides
55. 28.26 … Fluorides, fluorosilicates, fluoro aluminates and
other complex fluorine salts
56. 28.27 … Chlorides, chloride oxides and chloride
hydroxides, bromides and bromide oxides;
Iodides and Iodide oxides
57. 28.29 … Chlorates and Perchlorates; bromates and
Perbromates, Iodates and periodates
58. 28.30 … Sulphides, Polysulphides
59. 28.31 … Dithionites and sulphoxylates
60. 28.32 … Sulphites, Thiosulphites
 510

(1) (2) (3) (4)

61. … 2833.10 Copper sulphate

62. 28.34 … Nitrites, nitrates
63. 28.35 … Phosphinates (hypophosphites), phosphonates
(Phosphites); phosphates and polyphosphates
64. 28.36 … Carbonates, peroxocarbonates (percarbonates),
commercial ammonium carbonates containing
ammonium carbonate
65. 28.37 … Cyanides, cyanide oxides and complex cyanides
66. 28.38 … Fulminates, cyanates and thiocynates
67. 28.40 … Borates, peroxoborates (perborates)
68. … 2841.10 Sodium dichromate
69. … 2841.20 Potassium dichromate
70. 28.44 … Radioactive chemical elements and radio active
isotopes (including the fissile chemical elements
and isotopes) and their compounds; mixtures
and residues containing these products
71. 28.45 … Isotopes other than those of heading No.28.44
compounds, Inorganic or organic of such
isotopes, whether or not chemically defined
72. 28.46 … Compounds, Inorganic or organic of rare earth
metals of yitrium or of scandium or of mixtures
of these metals
73. 28.48 … Phosphides, whether or not chemically defined,
excluding ferrophosphorus
74. ... 2849.10 Calcium carbide
75. … 2901.90 Ethylene, Propylene
76. 29.02 … Cyclic Hydrocarbons
77. 29.03 … Halogenated derivatives of Hydrocarbons
78. 29.04 … Sulphonated, nitrated or nitrosated derivatives
of hydrocarbons, whether or not halogenated
79. … 2905.10 Methanol
80. … 2905.90 Di-Ethylene Glycol, Mono Ethylene Glycol, Tri-
Ethylene Glycol, Ethylene Glycol, Heavy
Ethylene Glycol
 511

(1) (2) (3) (4)

81. 29.06 … Cyclic alcohols and their halogenated,

sulphonated, nitrated or nitrosated derivatives
82. 29.08 … Halogenated, sulphonated, nitrated or
nitrosated derivatives of phenols or phenol
alcohols
83. 29.09 … Ethers, ether-alcohols peroxides, ether
peroxides, ketone peroxides (whether or not
chemically defined) and their halogenated,
sulphonated, nitrated or nitrosated derivatives
84. 29.10 … Epoxides, Epoxyalcohols, epoxyphenols and
epoxythers, with a three membered ring and
their halogenated, sulphonated, nitrated or
nitrosated derivatives
85. … 2910.00 Ethylene Oxide
86. 29.11 … Acetals and hemiacetals, whether or not with
other oxygen function and their halogenated,
sulphonated, nitrated or nitrosated derivatives
87. 29.12 … Aldehydes, whether or not with other oxygen
function; cyclic polymers of aldehydes;
paraformaldehyde
88. 29.13 … Halogenated, sulphonated, nitrated or
nitrosated derivatives of products of heading
No.29.12
89. 29.15 … Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids, their halogenated, sulphonated,
nitrated or nitrosated derivatives
90. 29.16 … Unsaturated acyclic monocarboxylic acids,
cyclic monocarboxylic acids, their anhydrides,
halides, peroxides and peroxyacids, their
halogenated, sulphonated, nitrated or
nitrosated derivatives
91. 29.17 … Polycarboxylic acids, their anhydrides, halides,
peroxides and peroxyacids, their halogenated,
sulphonated, nitrated or nitrosated derivatives
 512

(1) (2) (3) (4)

92. 29.18 … Carboxylic acids with additional oxygen

function and their anhydrides, halides,
peroxides and peroxyacids, their halogenated,
sulphonated, nitrated or nitrosated derivatives
93. 29.19 … Phosphoric esters and their salts, including
lactophosphates, their halogenated, sulpho-
nated, nitrated or nitrosated derivatives
94. 29.20 … Esters of other inorganic acids (excluding esters
of hydrogen halides) and their salts, their
halogenated, sulphonated, nitrated or
nitrosated derivatives
95. 29.21 … Amine-function compounds
96. 29.22 … Oxygen-function amino-compounds
97. 29.23 … Quaternery ammonium salts and hydroxides;
lecithins and other phosphominolipids
98. 29.24 … Carboxyamide-function compounds; amide-
function compounds of carbonic acid
99. 29.25 … Carboxyamide-function compounds (including
saccharin and its salts) and imine-function
compounds
100. 29.26 … Nitrile-function compounds
101. 29.27 … Diazo, Azo-or-azoxy compounds
102. 29.28 … Organic derivatives of hydrazine or of
hydroxylamine
103. 29.30 … Organo-sulphur compounds
104. 29.31 … Ethylene Diamine Tetra Acetic Acid, Nitrillo
Triacetric Acid and their derivatives
105. 29.32 … Heterocyclic compounds with oxygen
heteroatom(s) only
106. 29.33 … Heterocyclic compounds with nitrogen
heteroatom(s) only
107. 29.34 … Nucleic acids and their salts; other heterocyclic
compounds
108. 29.35 … Sulphonamides
109. 29.38 … Glycosides, natural or reproduced by synthesis
and their salts, ethers, esters and other
derivatives
 513

(1) (2) (3) (4)

110. 29.39 … Vegetable alkaloids, natural or reproduced by

synthesis, and their salts, ethers, esters and
other derivatives.
111. 29.42 … Ethylene Diamine Tetra Acetic Acid, Nitrilo
Triacetric Acid and their derivatives.
112. 32.01 … Tanning extracts of vegetable origin; tannis and
their salts, ethers, esters and other derivatives
113. 32.02 … Synthetic organic tanning substances; inorganic
tanning substances; tanning preparations,
whether or not containing natural tanning
substances, enzymatic preparations for pre-
tanning.
114. 32.03 … Colouring matter of vegetable or animal origin
(including dyeing extracts but excluding animal
black), whether or not chemically defined;
preparations based on colouring matter or
vegetable or animal origin as specified in Note 2
to this Chapter.
115. 32.04 … Synthetic organic colouring matter whether or
not chemically defined; preparations based on
synthetic organic colouring matter as specified
in Note 2 to this Chapter; synthetic organic
products of a kind used as fluorescent
brightening agents or as luminophores, whether
or not chemically defined.
116. 32.05 … Colour lakes; preparations based on colour
lakes, as specified in Note 2 to this Chapter
117. … 3207.10 Glass frit and other glass in the form of powder,
granules, or flakes.
118. … 3207.90 Others
119. 32.11 … Prepared driers
120. … 3215.90 Printing ink whether or not concentrated or
solid
121. 35.01 … Casein, caseinates and other casein derivatives,
casein glues
 514

(1) (2) (3) (4)

122. 35.07 … Enzymes; prepared enzymes not elsewhere

specified or included
123. 38.01 … Artificial graphite; colloidal or semi-colloidal
graphite; preparations based on graphite or
other carbon in the form of pastes, blocks,
pastes or other semi-manufacturers
124. 38.02 … Activated carbon, activated natural mineral
products, animal black, including spent animal
black
125. 38.04 … Residual lyes from the manufacture of wood
pulp, whether or not concentrated, desugared
or chemically treated, including lignin
sulphonates, but excluding tall oil of heading
No.38.03
126. 38.06 … Rosin and resin acids, and derivatives thereof,
rosin spirit and rosin oils, run gums
127. 38.07 … Wood tar, wood tar oils, wood creosol, wood
naptha, vegetable pitch, brewers pitch and
similar preparations based on rosin, resin acids
or on vegetable pitch
128. 38.09 … Finishing agents, dye carriers to accelerate the
dyeing or fixing of dye-stuffs and other
products and preparations (for example,
dressings and mordants) of a kind used in
textile, paper, leather or like industries, not
elsewhere specified or included
129. 38.12 … Prepared rubber accelerators; compound
plasticisers for rubber or plastics, not elsewhere
specified or included anti-oxidising
preparations and other compound stabilizers
for rubber or plastics
130. 38.14 … Reducers and blanket wash/roller wash used in
the printing industry
 515

(1) (2) (3) (4)

131. 38.15 … Reaction initiaters, reaction accelerators and

catalytic preparations, not elsewhere specified
or included
132. 38.17 … Mixed alkybenzenes and mixed alkynap-
thalenes, other than those of heading No.27.07
or 29.02
133. 38.18 … Chemical elements doped for use in electronics,
in the form of discs, wafers or similar forms;
chemical compounds doped for use in
electronics
134. 38.23 … Industrial monocarboxylic fatty acids, acid oils
from refining, industrial fatty alcohols
135. … 3824.90 Retarders used in the printing industry
136. … 3901.10 LLDPE/LDPE
137. … 3901.20 HDPE
138. 39.02 … Polymers of propylene or of other olefins, in
primary forms
139. … 3904.10 PVC
140. 39.06 … Acrylic polymers in primary forms
141. 39.07 … Polyacitals, other polyethers and epoxide resins,
in primary forms, polycarbonates, alkyd resins,
polyalyesters and other polyesters, in primary
forms
142. … 3907.60 Polyethylene Terephthalate Chips
143. 39.08 … Polyamides in primary forms
144. 39.09 … Amino-resins polyphenylene oxide, phenolic
resins and polyurethanes in primary forms
145. 39.10 … Silicones in primary forms
146. 39.11 … Petroleum resins, coumarone-indene resins,
polyterpenes polysulphides, polysulphones and
other products specified in Note 3 to this
Chapter, not elsewhere specified or included in
primary forms
 516

(1) (2) (3) (4)

147. 39.12 … Cellulose and its chemical derivatives, and

cellulose ethers, not elsewhere specified or
included in primary forms
148. 39.13 … Natural polymers (for example, alginic acid)
and modified natural polymers (for example,
hardened proteins, chemical derivatives of
natural rubber), not elsewhere specified or
included, in primary forms.
149. 39.14 … Ion-exchangers based on polymers of heading
Nos. 39.01 to 49.13 in primary forms.
150. 39.19 … Self adhesive plates, sheets, film foil, tape, strip
of plastic whether or not in rolls.
151. … 3920.32 Flexible plain films
152. 39.23 … Articles for the packing of goods, of plastics;
namely, boxes, cases, crates, containers, carboys,
bottles, jerry cans and their stoppers, lids, caps
of plastics (but not including insulated ware)
153. 40.01 … Natural Rubber, balata, gutta percha, Guayule,
chicle and similar natural gums, in primary
forms or in plates, sheets or strips.
154. 40.02 … Synthetic rubber and factice derived from oils in
primary forms or plates sheets or strip; mixtures
of any product of heading No.40.01 with any
product of this heading, in primary forms or in
plates, sheets or strip.
155. 40.03 … Reclaimed rubber in primary forms or in plates,
sheets or strip.
156. 40.05 … Compounded rubber unvulcanised in primary
forms or in pates, sheets or strip, other than the
forms and articles of unvulcanised rubber
described in heading No.40.06
157. 47.01 … Mechanical wood pulp, chemical wood pulp,
semi-chemical wood pulp and pulps of other
fibrous cellulosic materials
 517

(1) (2) (3) (4)

158. 48.19 … Cartons (including flattened or folded cartons)

boxes (including flattened or folded boxes)
cases, bags and other packing containers of
paper board whether in assembled or
unassembled condition.
159. 48.21 … Paper printed labels and paperboard printed
labels.
160. 48.23 … Paper, self adhesive tape and printed wrappers
used for packing
161. … 5402.42 Partially Oriented Yarn, polyesters texturised
yarn and waste thereof
162. … 5503.20 Polyester staple fibre and polyster staples fibre
fill
163. … 5503.20 Polyester staple fiber waste
164. … 6304.10 Sacks and bags of a kind used for the packing of
goods of jute or of other textile based fibres of
heading No.53.03
165. 70.07 … Carboys, bottles, jars, phials of glass of a kind
used for the packing of goods, stoppers, lids
and other closures of glass
166. 83.09 … Stoppers, caps and lids (including crown corks,
screw caps and pouring stoppers) capsules for
bottles, threaded bungs, bung covers, seals and
other packing accessories of base metal.

_______
 518

STATEMENT OF OBJECTS AND REASONS FOR ACT NO 9 OF 2007

The proposal herein relates to enactment of the Puducherry Value Added Tax Bill 2007 in
replacement of the Puducherry Value Added Tax Ordinance, 2007 which was promulgated on 2nd June
2007.
2. The Legislative Assembly was not in session and hence it was necessary to take immediate
action in regard to introduction of new levy of tax, namely, Value Added Tax in the Union Territory in
replacement of the existing single point tax on the sale or purchase of goods. As such the previous
instructions of the President of India was obtained in Order No. U- 11018/3/2007–UTL, dated 31st May
2007 of the Government of India, Ministry of Homed Affairs, New Delhi, for promulgation of the
Puducherry Value Added Tax Ordinance, 2007 as required in the first proviso to clause (1) of article 239 B
of the Constitution. Accordingly, the Puducherry Value Added Tax Ordinance, 2007 (No. 1 of 2007) was
promulgated by the Administrator of the Union Territory to provide for the levy and collection of value
added tax on the sale or purchase of goods in the Union territory of Puducherry and for matters
connected therewith or incidental thereto. The Puducherry Value Added Tax Ordinance, 2007 (No. 1 of
2007) has come into force on the 1st day of July 2007 and thereby the Puducherry General tax Act, 1967
(Act No. 6 of 1967) stands repealed from that day onwards.
3. Thus, with the introduction of valued added tax in the Union Territory through the
Puducherry Value Added Tax Ordinance, 2007 (No. 1 of 2007), value added tax has been imposed on the
sale or purchase of goods at the following rates, namely:-
(1) The First Schedule consists of exempted goods.
(2) The goods mentioned in the Second Schedule consist of special
category goods. The special category goods are divided into Part-A and Part-B. The goods listed under
Part – A are taxable at 1 per cent at each point of sale. The goods listed under Part-B are taxable at 1 per
cent at the point of last purchase.
(3) The goods enumerated in the Third Schedule are divided into Part –
A, Part – B and Part – C. The goods listed in Part – A are to be taxed at 4 per cent at sale point. The goods
listed under Part – B and Part – C are taxable at 4 per cent at purchase point.
(4) The goods mentioned in the Fourth Schedule are divided into Part – A
and Part – B. The goods listed under Part – A are taxable at 12 ½ per cent at each point of sale and those
listed under Part – B at 12 ½ per cent at the point of last purchase.
(5) The goods listed under the Fifth Schedule are taxable at 20 per cent
at the point of first sale.
(6) The goods mentioned under the Sixth Schedule are taxable at 35 per
cent at the point of first sale.
4. The threshold limit of rupees ten lakhs per annum is provided and the revenue neutral rate is fixed
at 12 ½ per cent. Apart from this, payment of tax at 0.25per cent of compounded rate is also provided for
which the dealer is not permitted to collect any amount by way of tax from the consumer. In the close of
works contract, the rates of tax specified for goods are applicable on the sale value of goods involved in
the execution of works contract. However, it is optional for the dealer executing works contract to pay tax
at compounded rate at four per cent on seventy per cent of the value of the consideration involved in the
works contract.
5. In view of the above, the provisions of the Puducherry Value Added Tax Ordinance, 2007 (No. 1 of
2007) has been converted in the form of a Bill titled as “ The Puducherry Value Added Tax Bill, 2007”
proposing for levy and collection of value added tax on the sale or purchase of goods in the Union
Territory at the rates as mentioned above with effect from 1st July 2007 in replacement of the said
Ordinance. It is also proposed to include in the Bill the consequential provision relating to repeal of the
said Ordinance and saving of orders, notifications and rules issued thereunder. The provisions of the Bill
shall be deemed to have come into force with effect from the date of commencement of the said
Ordinance, that is from 1st July 2007.
6. According to entry 54 of List – II (State List) of the Seventh Schedule to the constitution read with
section 18 (1) of the Government of Union Territories Act, 1963 (Central Act No. 20 of 1963), the union
 519

territory Administration is competent to levy value added taxes on these sale or purchase of goods other
than newspapers, subject to the provisions of entry 92 – A of List – 1.
7. The Puducherry Value Added Tax Bill, 2007 has therefore been proposed with effect from 1st July
2007 in replacement of the Puducherry Value Added Tax Ordinance, 2007 (No. 1 of 2007).
8. The Bill seeks to achieve the above objects.
________

FINANCIAL MEMORANDUM

Clause 3 empowers the Government to appoint various authorities under the Act, which requires
the technical and other staff for implementing the provisions of the Act. Clause 6 (2) provides that where
a dealer does not get himself registered under the Act shall be deemed to have been registered, which
requires large scale inspection and assessment. Clause 8 provides for procedure for registration. Sub-
clauses (4) and (6) of clause 13 of the Bill provide that an application for permit shall be accompanied by
such fee not exceeding one hundred rupees as may be prescribed.

Chapter – V provides for payment and recovery of tax. Chapter – VII provides for records and
investigation. The operation of the above provision contained in this Bill together with all its other
provisions, computerization, etc., will involve recurring and non-recurring expenditure of 3.50 crores
in the first year and for the subsequent year at 3.85 crores.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Sub-clauses (e), (x),(zj),(zl),(zn) of clause 2, sub-clause (1) of clause 6, sub-clauses (2) and (3) of
clause 8, clause9, clause10, sub-clause (1) and (3) of clause 12, sub-clause (5) of clause 13, sub-clauses (1)
and (2) of clause 17, sub-clause (2) of clause 19, clause 20, sub-clause (1)and of clause 24, clause 26 (b),
clause 31, clause 35, sub-clause (1) of clause 40, sub-clause (1) , (2) and (4) of clause 45, sub-clauses (1), (2)
and (5) of clause 47, sub-clauses (1), (2) (5) and (6) (b) of clause 49, sub-clauses (1), (2) and (7) (b) of clause
50, sub-clauses (2)and (8) (b)of clause 51, clause 53, clause 54, sub-clause (4) of clause 55, clause 56, sub-
clause (i) (iii) and (2)(iii)of clause 57, sub-clause(1) of clause 64, clause 70 (c), clause 71, sub-clause(1)and
(2) (iii) of clause 75, sub-clause(1) of clause 76, and clause 80 of the Bill empower the Government to
frame rules for carrying out the purposes of the Act.
(2) The powers delegated under the above provisions relate to matters of detail or procedure and
are thus of a normal character.
_______

ADMINISTRATIOR’S REOMMENDATION UNDER SUB-SECTION (1) OF SECTION 23 OF THE

GOVERNMENT OF UNION TERRITIORIES ACT, 1963.

(Copy of letter No. 17-1/CM/PS/PA/2007 from Hon’ble Thiru N. Rangasamy, Chief Minister to
the Hon’ble Speaker, Legislative Assembly, Puducherry)

The Lieutenant-Governor, Puducherry having been informed of the subject matter of the
proposed Puducherry Value Added Tax Bill, 2007 providing for the new levy of value added tax in the
place of the single point tax and in replacement of the Puducherry Value Added Tax Ordinance, 2007
(No. 1 of 2007) recommends under sub-section (1) of section 23 of the Government of Union Territories
Act, 1963, the introduction in and consideration by the Legislative Assembly of the said Bill.

_______
 520

STATEMENT OF OBJECTS AND REASONS FOR ACT 1 OF 2008

The Puducherry Value Added Tax Ordinance, 2007 (No. 1 of 2007) was promulgated by the
Administrator of the Union territory of Puducherry on the 2nd June 2007 and the said Ordinance has come
into force with effect from 1st July 2007. Thus, all the financial measures hitherto in force stand modified
and the trade and industry in the Union Territory are forced to meet innumerable difficulties consequent
on the implementation of the system of value added tax in the Union Territory. In order to remove the
financial constraints faced by the trade and industry in the Union Territory and for achieving smooth
transition from the single point of levy to multi point levy with effect from 1st July 2007, the goods viz.,
tobacco other than its exempted species and arrack pattai have been taxed and some of the goods have
been allowed exemptions from levy of value added tax by virtue of the notifications issued under the
Ordinance.

The above Ordinance has been replaced by the Puducherry Value Added Tax Act, 2007 (Act No.
9 of 2007). By virtue of section 82 of the Puducherry Value Added Tax, 2007 the abovesaid notifications
shall be deemed to have been issued under the Act.

The goods viz., tobacco except its exempted species and arrack pattai which are taxed and the
goods for which exemptions allowed under the Ordinance with effect from 1st July 2007 have been
proposed to be taxed and exemption allowed in the Bill with effect from the 1st day of July 2007 until the
necessity therefor ceases, for the sustained growth of the economy of the Union Territory.

In order to give effect of the alterations made through the said notifications a Bill titled “the
Puducherry Value Added Tax (Amendment) Bill, 2008” is proposed to be enacted.

The Bill seeks to achieve the above objects.

_______

STATEMENT OF OBJECTS AND REASONS FOR ACT 7 OF 2008

The proposal herein relates to rationalization of threshold limit for registration and levy in line
with the neighbouring States especially the State of Tamilnadu. It is proposed to fix the threshold limit for
registration and levy at 5 lakhs for those making inter-State purchases and 10 lakhs for those
making local purchase and for removal of exemption from section 14 (2).

2. Further, streamlining composition scheme of tax in section 19 is proposed with a view to

enhance the rate of tax from 0.25% to 0.50 % with restriction to allow the composition scheme only to
those dealers effecting second and subsequent sales within the Union Territory.

3. For this purpose, amendments are proposed to sections 4, 12, 14 and 19 and a new section 4A is
also proposed and the bill titled the “Puducherry Value Added Tax (Second Amendment) Bill, 2008” is
proposed to be enacted.

This Bill seeks to achieve the above objects.

_____
STATEMENT OF OBJECTS AND REASONS FOR ACT 6 OF 2009
The Puducherry Value Added Tax Act, 2007 is proposed to be amended for improving
the operational efficiency and to meet administrative necessity in the enforcement of VAT law
in the Union Territory.
It is proposed to add a new definition clause in section 2 of the said Act for the word
“branded” with a view to regulate the rate of tax by differentiating the product as branded or
 521

unbranded. Section 12 is proposed to be amended to provide for cancellation of Registration

Certificate in the event of any registered dealer being found to have committed the offence of
evasion of tax. Hence section 12 is proposed to be amended suitably alongwith the
consequential amendments thereto. The existing provisions of sub-section (3) of section 14
providing for levy of tax on spares and accessories of goods specified in the Schedule need to be
revised. Hence section 14 (3) is proposed to be amended along with consequential amendments
in section 31 of the Act.
The awarder of works contract has to deduct the tax and remit the same to the
Government. This situation casts a heavy burden on small and petty contractors. Hence it is
proposed that tax will not be deducted when the contract amount to be paid or likely to be paid
to a contractor for execution of works contracts does not or is not likely to exceed rupees one
lakh in a year. It is also proposed to shorten the period for furnishing of certificate of payment
of tax in the case of works contract from fifteen days to three days. Input tax credit will not be
allowed to those dealers opting for compounding tax in the case of works contract.
In order to discourage tax payers from belatedly remitting the tax due to the
Government, a penalty provision is also proposed. Where the dealers liable to pay tax for any
tax period fail to pay tax, provisions for scrutiny assessment is proposed. It is also proposed
that only the sales to Special Economic Zone Unit will be zero-rated. Moreover when the appeal
or revision is pending, certain difficulties are encountered while collecting the assessed tax. As
such, for facilitation of collection of arrears, the barriers on account of pendency of appeal or
revision are proposed to be removed. It is proposed to insert the words “Assistant
Commissioner” in section 77 of the Act with a view to meet the administrative exigencies.
For the above purpose, amendments are proposed to section 2, 12, 14, 15, 16, 21, 24, 31,
37 and 77 and a new section namely, section 24A is proposed to be inserted, Accordingly a Bill
titled “the Puducherry Value Added Tax (Amendment) Bill, 2009” is proposed to be enacted.
This Bill seeks to achieve the above objects.
_______
STATEMENT OF OBJECTS AND REASONS FOR ACT 7 OF 2009
In the Budget Speech for 2009-10, certain fiscal measures were announced by the
Hon’ble Chief minister on the Floor of the House.
2. In order to give effect to the above fiscal measures, the sale of diesel to fisherman for
fishing activities, the building materials sold by certain Co-operative institutions at Puducherry
and Kariakal for the construction of dwelling houses and in respect of the sale of food and
drinks by a Co-operative Society have been allowed exemption from levy of tax and the rate of
tax on the sale of cigarettes has been increased from 12.5 % to 20% by virtue of notification
issued under section 75 of the Puducherry Value Added Tax Act, 2007 (Act No. 9 of 2007).
3. In order to give effect of the amendments made in the First and Fifth Schedules of the
said Act through the said notification, a Bill titled “the Puducherry Value Added Tax (Second
Amendment) Bill, 2009” is proposed to be enacted.
4. This Bill seeks to achieve the above objects.
_____
STATEMENT OF OBJECTS AND REASONS FOR ACT 7 OF 2010
In order to mobilize additional revenue, four per cent. tax on the sale of ‘Electrical
Energy’ at the point of last sale has been proposed and exemptions from levy on the sale of
electrical energy for domestic and agricultural purposes and in the case of the commercial
consumers for the first 300 units per month and sales of electrical energy falling under Article
287 of the Constitution of India have also been proposed.
 522

2. In exercise of the powers conferred under section 75 of the Puducherry Value Added
Tax Act, 2007 (Act No. 9 of 2007), a notification was therefore issued for amending the First and
Third Schedules of the said Act with effect from the 7th day of November, 2009 for the purpose
of imposing levy of tax on the sales of electrical energy at the above rate and also for the grant
of exemptions for sales of electrical energy to the above categories.

3. In order to give effect, to the amendments made to the First and Third Schedules of
the said Act through the notification, a Bill titled “ The Puducherry Value Added Tax
(Amendment) Bill, 2010” is proposed to be enacted.

4. This Bill seeks to achieve the above objects.

______

STATEMENT OF OBJECTS AND REASONS FOR ACT 8 OF 2010

In the Budget Speech for 2009-2010, the Hon’ble Chief Minister has announced tax
exemption on the sale of notebook and examination pads.

2. In order to give effect to the above assurance, a notification was issued for amending
the First Schedule in exercise of the powers conferred by section 75 of the Puducherry Value
Added Tax Act, 2007 (Act No. 9 of 2007).

3. In order to give effect to the amendments made to the First Schedule of the said Act
through the aforesaid notification, a Bill titled “ The Puducherry Value Added Tax (Second
Amendment) Bill, 2010” is proposed to be enacted.

4. The Bill seeks to achieve the above objects.

_____
STATEMENT OF OBJECTS AND REASONS FOR ACT 11 OF 2010
After introduction of Value Added Tax, many States have granted
exemption/concessions on the sale of goods by Canteen Stores Department to serving Defence
Personnel and Ex-servicemen. Hence, exemption from levy on the sale of goods by the Canteen
Stores Department in Puducherry has been proposed. For this purpose, the First Schedule of the
Puducherry Value Added Tax Act, 2007 has been proposed to be amended.

Accordingly a Bill titled “the Puducherry Value Added Tax (Third Amendment) Bill,
2010” is proposed to be enacted.

The Bill seeks to achieve the above objects.

______
 523

STATEMENT OF OBJECTS AND REASONS FOR ACT 12 OF 2010

Packaged drinking water manufactured within the Union territory of Puducherry is

proposed to be exempted.

2. For this purpose, a Bill titled “The Puducherry Value Added Tax (Fourth
Amendment) Bill, 2010” is proposed to be enacted for amending the First Schedule of the
Puducherry Value Added Tax Act, 2007.

3. The Bill seeks to achieve the above objects.

THE PUDUCHERRY VALUE ADDED TAX (AMENDMENT) BILL, 2012

STATEMENT OF OBJECTS AND REASONS

In pursuance of the consensus reached among the States for increasing the lower rate of
VAT from 4% to 5% in the meeting of the Empowered Committee of the State Finance
Ministers, it becomes necessary to increase the rate of tax in respect of the Third Schedule goods
from 4% to 5%. The Central Government has increased the rate of tax chargeable to the
declared goods from 4% to 5% through the Finance Act, 2011. The rate of tax prevalent in
respect of the Fourth Schedule goods in the neighbouring States at the rate of 14.5% have been
taken into account and to augment the Government revenue, the goods falling under the Fourth
Schedule have to be charged at higher rate from 12.5% to 14.5%. Further, the exemption
allowed in the case of certain Government Organisations and Co-operative Societies have been
removed. Certain goods hitherto exempted have been proposed to be taxed. Thus, the rate of
tax have been fixed at 5% for edible oil, masala powder, handicrafts, live chicken sold in Mahe
region and at 14.5% in the case of footwear.

2. For the above purpose, a notification was issued in exercise of the powers
conferred by sub-section (1) of section 75 of the Puducherry value Added Tax Act, 2007 for
amending the Schedules. In order to replace the notification, a Bill titled as the”Puducherry
Value Added Tax (Amendment) Bill, 2012” has been proposed to be enacted.

3. This Bill seeks to achieve the above objects.

________________
 524

THE PUDUCHERRY MARINE FISHING REGULATION ACT, 2008

(Act No. 6 of 2008)
______________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

CHAPTER -1
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
3. Authorised officer for the purposes of any provision of this Act
CHAPTER – II
RECULATION OF FISHING
4. Power to regulate, restrict or prohibit certain matters within specified area
5. Prohibition of use of fishing vessel in contravention of any order made under
section 4
6. Licensing of fishing vessels
7. Prohibition of fishing by using fishing vessels which are not licensed
8. Cancellation, suspension and amendment of licences
9. Registration of fishing vessels, boat building yards, etc
10. Information to be given to the authorised officer about movement of fishing vessels
11. Returns to be furnished by owners of registered fishing vessels
12. Finality of orders under sections 6, 8 and 9
13. Appeal against an order made under section 6, section 8 or section 9
14. Powers and duties of fishery officers
15. Power to enter and search fishing vessels
16. Custody of fishing vessels and disposal of seized fish
CHAPTER – III
ADJUDICATION
17. Adjudication
18. Penalty
19. Constitution of Appellate Board and appeal to Appellate Board
20. Revision by Appellate Board
21. Powers of the adjudicating officer and the Appellate Board
22. Contravention by companies
CHAPTER – IV
MISCELLANEOUS
23. Exemptions
24. Protection of action taken in good faith
25. Power to make rules
26. Power to remove difficulties
_____
 525

THE PUDUCHERRY MARINE FISHING REGULATION ACT, 2008

(Act No. 6 of 2008)

[30-9-2008]

An
Act

to provide for the regulation of sea fishing by fishing vessels in the territorial
waters of the Union territory of Puducherry and for matters connected therewith.

BE it enacted by the Legislative Assembly of Puducherry in the Fifty-ninth Year

of the Republic of India as follows:-

CHAPTER -1
PRELIMINARY
Short title, extent and commencement

1. (1) This Act may be called the Puducherry Marine Fishing Regulation Act,
2008.
(2) It extends to the whole of the Union territory of Puducherry
*(3) It shall come into force on such date as the Government may, by
notification in the Official Gazette, appoint; and different dates may be appointed for
different provisions of this Act and any reference in any such provision to the
commencement of this Act shall be construed as a reference to the coming into force of
that provision.
Definitions

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

(a) “adjudicating officer” means any officer of the Fisheries and Fishermen
Welfare Department not below the rank of an Assistant Director of Fisheries authorized
by the Government, by notification in the Official Gazette to exercise the powers
conferred on, and to discharge the duties imposed upon, such officer by this Act, for
such areas as may be specified in the notification;

* This Act came into force w.e.f 23.09.09 vide Notification issued in [Link] No.31 dt. 23.09.09
 526

(b) “Appellate Board” means the Appellate Board constituted under section 19;

(c) “authorized officer” means an officer authorized by the Government under

section 3;

(d)“fish” means any vertebrate and invertebrate animal in the sea, and includes
fish, crustacean, shellfish, sea cucumber (beche-de-mer), sea grasses and corals (dead or
living), excluding the animals covered under the Wild Life (Protection) Act, 1972
(Central Act 53 of 1972);

(e)“Fisheries Department” means the Fisheries and Fishermen Welfare

Department of the Union territory of Puducherry;

(f) “fishery officer” means an officer of the rank of Fieldman but not above the
rank of Inspector of Fisheries in the Fisheries Department or any other officer of the
Union territory of Puducherry or the Central Government, as may be appointed by the
Government by notification in the Official Gazette;

(g) “fishing” means exploitation, catching or collection of vertebrate and

invertebrate animals in the sea excluding animals covered under the Wild Life
(Protection) Act, 1972 (Central Act 53 of 1972), and includes fish, crustacean, shellfish,
sea cucumber (beche-de-mer), sea grasses and corals (dead or living) by applying or
operating any fishing gears or culture of fish and its harvest in the territorial waters of
the Union territory of Puducherry;

(h) “fishing gears” in relation to fishing, includes implements, nets, hooks and
lines, cages, traps, harpoons but does not include the explosives, poisons and chemicals
or any other device of mass destruction;

(i) “fishing vessels” means a ship or boat, whether or not fitted with mechanised
means of propulsion, which is engaged in sea fishing for profit and includes a
catamaran, country craft, canoe and dinghy engaged in sea fishing;

(j) “Government” means the Administrator of the Union territory of Puducherry

appointed by the President under article 239 of the Constitution;

(k) “mechanised fishing vessel” means a ship or boat fitted with mechanized
means of propulsion having an engine not less than fifteen Horse Power but not more
than hundred and twenty Horse Power and measuring in length not less than eight
metres and not more than fifteen metres, but does not include a deep sea fishing vessel,
and a “deep sea fishing vessel” means a ship or boat fitted with mechanical means of
propulsion having an engine of not less than one hundred and twenty Horse Power
and measuring in length not less than fifteen metres;
 527

(l) “Owner” in relation to any fishing vessel, includes any person, who has
power to sell or transfer the fishing vessel or who has the custody thereof or who
receives whether on his own behalf, or on behalf of any other person rent for such
fishing vessels;

(m) “port” means the space within such limits as may, from time to time, be
defined by the Government, by notification in the Official Gazette, for the purposes of
this Act;

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

(o)“’registered fishing vessel” means-

(i) a fishing vessel registered under section 11 of the Marine Products

Export Development Authority Act, 1972 (Central Act 13 of 1972); or
(ii) a vessel registered as a fishing vessel under section 9 of this Act;

(p) “specified area” means such area or areas in the sea along the entire
coastline of the Union Territory, but not beyond the territorial waters, as may be
specified by the Government, by notification in the Official Gazette from time to time;

(q)”Union Territory” means the Union territory of Puducherry and includes the
territorial waters along the entire coastline of the Union Territory.

Authorised officer for the purposes of any provision of this Act

3. The Government may, by notification in the Official Gazette, authorize an

officer of the Government of Puducherry not below the rank of an Assistant Director of
Fisheries, or any officer of the Central Government with the consent of that
Government, to exercise the powers conferred on, and discharge the duties imposed
upon such officer under this Act, in such area or areas as may be specified in the
notification.
CHAPTER – II

RECULATION OF FISHING
Power to regulate, restrict or prohibit certain matters within specified area

4. (1) The Government, may, having regard to the provisions of sub-section (2),
by order notified in the Official Gazette, regulate, restrict or prohibit-
(a) the fishing in any specified area by such class or classes of fishing
vessels as may be prescribed; or
 528

(b) the number of fishing vessels which may be used for fishing in any
specified area; or
(c) the catching in any specified area of such species of fish and for such
period as may be specified in the notification; or
(d) the use of such fishing gear in any specified area as may be prescribed; or
(e) fishing in any specified area during such period of day or night as may be
prescribed.

(2) In making an order under sub-section (1), the Government shall have due
regard to the following matters, namely:-

(a) the need to protect the interest of different sections of persons engaged in
fishing, particularly those engaged in fishing by using traditional fishing crafts such as
catamaran, country craft, canoe or dinghy;
(b) the need to conserve fish and to regulate fishing on a scientific basis;
(c) the need to maintain law and order in the sea;
(d) the need to lease any specified area of the territorial waters to conserve or
culture any species of fish or shellfish;
(e) the need to lease out right to fish in the territorial waters for fish culture
and harvest; and
(g) any other matter as may be prescribed.

(3) Notwithstanding anything contained in sub-sections (1) and (2), no owner or

master of a mechanized fishing vessel shall use or cause or allow to be used such fishing
vessel for fishing operation in the sea within three nautical miles from the coastline in
the Union Territory and the owner or master of a mechanised fishing vessel shall use or
cause or allow to be used such mechanised fishing vessels only beyond three nautical
miles from the coastline in the Union Territory and such operation beyond three
nautical miles shall be subject to the following condition, namely:-

(i) the mechanised fishing vessel referred to in this sub-section shall leave
the notified place of berth or anchoring only after 5 a.m. and the
mechanized fishing vessel shall report back at the notified place of
berth concerned not later than 9 p.m. and such mechanized fishing
vessel shall remain at the notified place of berth or anchoring till 5
a.m. of the following day.

Explanation.- “Notified place of berth or anchoring” in respect of a mechanized

fishing vessel means the place of berth or anchoring which the authorized officer shall
specify as a place of berth or anchoring for that mechanized fishing vessel;
 529

(ii) any other condition which the Government may on the

recommendation of the Director of Fisheries, specify.

(4) Notwithstanding anything contained in sub-section (1) and (2), no owner or

master of a deep sea fishing vessel shall use or cause or allow to be used such fishing
vessel for fishing operation in the sea within three nautical miles from the coastline in
the Union Territory and the owner or master of a deep sea fishing vessel shall use or
cause or allow to be used such deep sea fishing vessel only beyond three nautical miles
from the coastline in the Union Territory and such operation beyond three nautical
miles shall be subject to such conditions as the Government may by notification,
specify.

Prohibition of use of fishing vessel in contravention of any order made under

section 4

5. No owner or master of a fishing vessel shall use, or cause to allow such vessel
to be used, for fishing in any manner which contravenes an order made under section 4:

Provided that nothing in such order shall be construed as preventing the passage
of any fishing vessel from, or to, the shore, through any area whether specified area or
otherwise:

Provided further that the passing of such fishing vessel through any specified
area shall not, in any manner, cause any damage to any fishing nets or tackles belonging
to any person who engages in fishing in the specified area by using any traditional
fishing craft such as catamaran, country craft, canoe or dinghy in accordance with the
provisions of this Act.
Licensing of fishing vessels

6. (1) The owner of a fishing vessel may make an application to the authorized
officer for the grant of a licence for using such fishing vessel for fishing in any specified
area.

(2) Every application under sub-section (1) shall be in such form, contain such
particulars, and be accompanied by such fees, as may be prescribed.
(3) The authorized officer may, after making such inquiry as he may deem fit
and having regard to the matters referred to in sub-section (4), either grant or refuse to
grant, to the owner of the fishing vessel a licence for using such fishing vessel for
fishing in the specified area or specified areas as may be mentioned in such licence.
(4) In granting or refusing to grant a licence under sub-section (3), the
authorised officer shall have regard to the following matters, namely:-
 530

(a) whether the fishing vessel is registered or not;

(b) the condition of the fishing vessel including the accessories and fishing
gear with which it is fitted;
(c) whether any order has been made under section 4; and
(d) any other matter as may be prescribed.

(5) A licence granted under this section shall be in such form and valid for
such period and subject to such conditions, including conditions as to payment of such
fees and furnishing such security for the due performance of the conditions, as may be
prescribed:

Provided that different fees and different amounts by way of security may be
prescribed in respect of licences for different classes of fishing vessels.

(6) A licence granted under this section may be renewed by the authorised
officer subject to the rules made under sub-section (5).

Prohibition of fishing by using fishing vessels which are not licensed

7. No person shall, after the commencement of this Act, carry on fishing in any
specified area using a fishing vessel, which is not licensed under section 6:

Provided that nothing in this section shall apply to a fishing vessel, which was
being used for fishing in such area immediately before the commencement of this
Act, for such period as may be specified by the Government, by notification in the
Official Gazette.

Cancellation, suspension and amendment of licences

8. (1) If the authorised officer is satisfied, either on a reference made to him in

this behalf or otherwise, that-

(a) a licence granted under section 6 has been obtained by

misrepresentation as to an essential fact; or

(b) the holder of a licence has, without reasonable cause, failed to comply
with the conditions subject to which the licence has been granted or has contravened
any of the provisions of this Act or any order or rule made there under, then, without
prejudice to any other penalty to which the holder of the licence may be liable under
this Act, the authorised officer may, after giving the holder of the licence a reasonable
opportunity of showing cause and being heard, cancel or suspend the licence or forfeit
the whole or any part of security, if any, furnished for the due performance of the
conditions subject to which the licence has been granted.
 531

(2) Subject to any rules that may be made in this behalf, the authorised officer
may, for reasons to be recorded in writing, also vary or amend a licence granted under
section 6.
Registration of fishing vessels, boat building yards, etc

9. (1) All fishing vessels/boats other than a fishing vessel registered under
section 11 of the Marine Products Export Development Authority Act, 1972 (Central Act
13 of 1972), boat building yards, processing plant, ice factory and other industries
related to fisheries shall be registered under this Act. Any new construction of fishing
boat shall also be got approved.

(2) Every application for registration or approval under sub-section (1) shall
be made by the owner thereof to the authorised officer in such form and in such manner
and shall be accompanied by such fees as may be prescribed,-

(a) before the expiry of one month from the date on which he became the
owner thereof; or
(b) before the expiry of three months from the date of commencement of
this Act, whichever is later:

Provided that the authorised officer may, for reasons to be recorded in writing,
extend the time limit for registration by such period not exceeding six months at a time,
as he may think fit.

(3) The authorised officer shall assign a registration number to the vessel and
issue to the owner of the vessel registered by him a certificate of registration in the
prescribed form and shall enter the particulars of the certificate in the register to be kept
by him in such form as may be prescribed:

Provided that the authorised officer may, for reasons to be recorded in

writing, refuse to register the vessel.
(4) The registration once made shall continue to be in force until it is cancelled
by the authorised officer.

(5) Every fishing vessel registered under this section shall carry the
registration mark assigned to it by the authorised officer and such mark shall be
displayed on the vessel in the prescribed manner.

(6) No fishing vessel, other than a registered fishing vessel, shall be entitled to
apply for a licence under section 6.
 532

Information to be given to the authorised officer about

movement of fishing vessels

10. Where a registered fishing vessel moves from the area of one port to the area
of another port, for fishing in that area, the owner of such fishing vessel shall give
information to that effect, in the prescribed manner, to the authorised officer by whom
such fishing vessel was registered and also to the port officer having jurisdiction over
the area to which such fishing vessel moves.

Returns to be furnished by owners of registered fishing vessels

11. (1) Every owner of a registered fishing vessel shall furnish to the
authorised officer at such interval and in such manner such return as may be
prescribed.

(2) The authorised officer may enter upon and inspect any registered fishing
vessel at any time to verify the correctness of any return furnished by the owner under
sub-section (1).
Finality of orders under sections 6, 8 and 9

12. Every decision of the authorised officer under section 6, section 8 or section 9,
granting or refusing to grant licence for a fishing vessel or cancelling, suspending,
varying or amending such licence, or registering or cancelling or suspending the
certificate of the registration of a fishing vessel shall, subject to any right of appeal
under section 13, be final.

Appeal against an order made under section 6, section 8 or section 9

13. (1) Any person aggrieved by an order made under section 6 or section 8 or
section 9 may, within thirty days from the date on which the order is communicated to
him, prefer an appeal before the adjudicating officer in the prescribed manner:
Provided that the adjudicating officer may entertain the appeal after the
expiry of the said period of thirty days, but not beyond sixty days, if he is satisfied that
the appellant was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the adjudicating officer shall,
after giving the parties a reasonable opportunity of being heard, pass such orders
thereon as he deems fit as expeditiously as possible, and in any case before the expiry of
three months from the date of filing of appeal.
 533

Powers and duties of fishery officers

14. Every fishery officer shall assist the authorised officer in the discharge of his
duties and may-

(a) interpose for the purpose of preventing, and shall to the best of his
ability prevent, the commission of an offence punishable under this Act;
(b) enter into any vessel or premises, for inspecting implements or fish
therein and check the possession of the fishing licence and registration of the vessel;
(c) conduct field verification of the fishing implements and crafts available
with the parties who have applied for fishing licence; and
(d) on knowing the desire of any person to commit an offence punishable
under this Act, bring the same to the notice of the authorised officer.

Power to enter and search fishing vessels

15. If the authorised officer has, either on receipt of a report of fishery officer or
otherwise, reason to believe that any fishing vessel is being or has been used in
contravention of any provision of this Act or of any order or rule made thereunder or of
any of the conditions of the licence, he may enter and search such vessel and impound
the vessel and seize the fish found in it.

Custody of fishing vessels and disposal of seized fish

16. (1) The authorised officer shall keep the fishing vessel impounded under
section 15, in such place and in such manner as may be prescribed.

(2) In the absence of suitable facilities for the storage of the fish seized, the
authorised officer may, if he is of the opinion that the disposal of such fish is necessary,
dispose off such fish and deposit the proceeds thereof in the prescribed manner in the
office of the adjudicating officer.

CHAPTER – III

ADJUDICATION

Adjudication

17. (1) Where any authorised officer has reason to believe that any fishing
vessel is being, or has been, used in contravention of any of the provisions of this Act, or
of any rule or order made thereunder or of any of the conditions of the licence, he shall
make a report thereof to the adjudicating officer.
 534

(2) The adjudicating officer shall hold an enquiry into the matter mentioned in
the report in the prescribed manner after giving all the parties concerned a reasonable
opportunity of being heard.
Penalty

18. (1) The adjudicating officer shall, after the inquiry under sub-section (2) of
section 17, decide whether any person has used, or caused or allowed to be used, any
fishing vessel in contravention of any of the provisions of this Act or of any rule or
order made thereunder or any of the conditions of the licence, and any such person, on
being found guilty by the adjudicating officer, shall be liable to such penalty not
exceeding,-
(a) in case the vessel involved is fifty feet or above in length,-

(i) five thousand rupees, if the value of the fish involved is one
thousand rupees or less;
(ii) five times the value of the fish, if the value of the fish involved
is more than one thousand rupees; or
(iii) five thousand rupees, in any other case, being a case not
involving fish, as may be adjudged by the adjudicating officer;

(b) in case the vessel involved is below fifty feet in length,-

(i) one thousand rupees, if the value of the fish involved is not
more than one hundred rupees; or
(ii) five times the value of the fish, if the value of the fish involved
is more than one hundred rupees but not more than one
thousand rupees; or
(iii) one thousand rupees, in any other case, being a case not
involving fish, as may be adjudged by the adjudicating officer.

(2) In addition to any penalty that may be imposed under sub-section (1), the
adjudicating officer may direct that-

(a) the registration certificate of the fishing vessel which has been used, or
caused or allowed to be used, in contravention of any provision of this Act or of any
order or rule made thereunder or of any condition of the licence shall be-

(i) cancelled; or
(ii) suspended for such period as the adjudicating officer deems fit;
or
(b) the fishing vessel which has been impounded and the fish which has
been seized under section 15 shall be forfeited to the Government:
 535

Provided that no fishing vessel shall be forfeited under clause (b), if the
adjudicating officer, after hearing the owner of the vessel or any person claiming any
right thereto, is satisfied that the owner or such person had exercised due care and
caution for the prevention of the commission of such offence.

Constitution of Appellate Board and appeal to Appellate Board

19. (1) The Government may, by notification in the Official Gazette, constitute
an Appellate Board.

(2) The Appellate Board shall consist of three members, one of whom shall be
a person who is or has been a District Judge and such person shall be appointed as the
Chairperson of the Appellate Board and the other members shall be persons having
expertise in Fisheries or law and such other qualifications as may be prescribed.

(3)The fees and allowances payable to the Chairperson and other members of
the Appellate Board shall be such as may be prescribed.

(4)Any person aggrieved by an order of the adjudicating officer may, within

thirty days, from the date on which the order is communicated, prefer an appeal to the
Appellate Board:

Provided that the Appellate Board may entertain any appeal after the expiry
of the said period of thirty days, but not after the expiry of sixty days from the date
aforesaid, if it is satisfied that the appellant was prevented by sufficient cause from
filing the appeal in time.

(5) No appeal under this section shall be entertained by the Appellate Board
unless the appellant has, at the time of filing the appeal, deposited half of the amount of
penalty payable under the order appealed against:

Provided that, on an application made by the appellant in this behalf, the

Appellate Board may, if it is satisfied that the deposit to be made under this sub-section
will cause undue hardship to the appellant, by order in writing, dispense with such
deposit either unconditionally or subject to such conditions as it may deem fit to
impose.

(6) On receipt of an appeal under sub-section (4), the Appellate Board may,
after holding such inquiry as it deems fit, and after giving the parties concerned a
reasonable opportunity of being heard, confirm, modify or set aside the order appealed
against and the decision of the Appellate Board shall be final.
 536

(7) Where the amount deposited by the appellant by way of penalty under
sub-section (5) exceeds the amount directed to be paid by the Appellate Board, the
excess amount so deposited, or where the Appellate Board sets aside the order
imposing penalty, the whole amount so deposited by way of penalty, shall be refunded
to the appellant.
Revision by Appellate Board

20. The Appellate Board may call for and examine the records of any order made
under section 18 and against an order where no appeal has been preferred under
section 19, for the purpose of satisfying itself as to the legality or propriety of such order
or as to the regularity of the procedure and pass such order with respect thereto as it
may think fit:

Provided that no such order shall be made without giving a reasonable

opportunity of being heard to the parties.

Powers of the adjudicating officer and the Appellate Board

21. (1) The adjudicating officer and the Appellate Board shall for the purpose
of any enquiry under this Act, have the same powers as are vested in a civil court while
trying a suit under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect
of the following matters, namely;-

(a) summoning and enforcing the attendance of witnesses;

(b) requiring the discovery and production of any document;
(c) requisitioning any public record or copy thereof from any court or
office;
(d) receiving evidence on affidavits;
(e) issuing commissions for the examination of witnesses or documents;
and
(f) any other matter as may be prescribed;
(2) The adjudicating officer and the Appellate Board while exercising any
power under this Act, shall be deemed to be civil courts for the purposes of sections 345
and 346 of the Code of Criminal Procedure, 1973(Central Act 2 of 1974).
(3) The Appellate Board shall not be bound by the procedure laid down in the
Code of Civil Procedure, 1908 (Central Act 5 of 1908), but shall be guided by the
principles of natural justice and subject to the other provisions of this Act and the rules
made thereunder, the Appellate Board shall regulate its own procedure.

Contravention by companies
22. (1) Where a person committing contravention of any of the provisions of
this Act or any rule or order made thereunder or any of the conditions of a licence
granted under it is a company, every person who, at the time of contravention was
 537

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
contravention 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 contravention was committed
without his knowledge or that he had exercised all due diligence to prevent the
commission of such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a
contravention under this Act, or any rule or order made thereunder or any of the
conditions of a licence granted under it 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 shall be deemed to be guilty of that contravention and shall be
liable to be proceeded against and punished accordingly.

Explanation.- For the purposes of this section,-

(a) “company” means any body corporate and includes a firm or other
association of individuals; and
(b) “director” in relation to a firm, means a partner in the firm.

CHAPTER – IV

MISCELLANEOUS

Exemptions

23. (1) Nothing contained in this Act shall apply to survey vessels belonging to-
(a) the Central Government;
(b) a State Government;
(c) a Union Territory Government;
(d) a public undertaking.

Explanation.- For the purposes of this sub-section, “public undertaking” means

any company or corporation owned or controlled by the Central Government or by a
State Government or by a Union Territory Government.
(2) If the Government is of the opinion that, having regard to the purposes of this
Act, it would not be in the public interest to apply all or any of the provisions of this Act
to any class or classes of fishing vessels used for fishing in any specified area or
specified areas, it may, by notification in the Official Gazette, exempt, subject to such
conditions as it may think fit to impose upon such class or classes of fishing vessels
used for fishing in such specified area or specified areas, as it may specify in the
notification, from the operation of all or any of the provisions of this Act:
 538

Provided that no notification under this sub-section shall remain in force for
more than six months at a time.

Protection of action taken in good faith

24.(1) No suit, prosecution or other legal proceeding shall lie against the
Government or any officer or authority for anything which is in good faith done or
intended to be done in pursuance of this Act or any order or rule made thereunder.
(2) No suit or other legal proceeding shall lie against the Government or any
officer or authority for any damage caused or likely to be caused by anything which is
in good faith done or intended to be done in pursuance of this Act or any order or rule
made thereunder
Power to make rules
25. (1) The Government may, by notification in the Official Gazette, make rules
for carrying 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) to regulate, restrict or prohibit the matters under clauses (a), (d) and (e) of
sub-section (1) of section 4 and the matters to be considered by the Government under
clause (e) of sub-section (2) thereof;
(b) the form of the application for grant of licence under sub-section (1), the
particulars which it shall contain and the fees which shall accompany it under sub-
section (2) of section 6;
(c) the matters to be considered by the authorised officer in granting or
refusing to grant a licence under clause (d) of sub-section (4) of section 6;
(d) the form of licence, the fees payable, the conditions therein, and the
security for the due performance of the conditions of the licence under sub-section (5) of
section 6;
(e) the procedure to be followed in varying or modifying a licence under sub-
section (2) of section 8;
(f) the form of application for registration of a vessel as a fishing vessel, boat
building yard, etc., and approval for any new construction of boat and the fees which
shall accompany such application under sub-section (2) of section 9;
(g) the form of certificate of registration of a vessel as a fishing vessel, the form
of the register referred to in sub-section (3) of section 9 and the manner in which the
registration mark of the fishing vessel shall be displayed under sub-section (5) of that
section;
(h) the manner in which the information relating to movement of a fishing
vessel from the area of one port to the area of another port shall be given under section
10;
(i) the time and manner in which returns by the owner of a registered fishing
vessel shall be furnished under sub-section (1) of section 11;
 539

(j) the manner in which appeal shall be preferred before the adjudicating
officer under sub-section (1) of section 13;
(k) the place and the manner in which an impounded fishing vessel shall be
kept under sub-section (1) of section 16 and the manner in which the proceeds of the
seized fish disposed off shall be deposited with the adjudicating officer under sub-
section (2) of that section.
(l) the procedure of the inquiry by the adjudicating officer under sub-section
(2) of section 17;
(m) the qualifications of the members of Appellate Board other than the
Chairperson under sub-section (2) of section 19;
(n) the fees and allowances payable to the Chairperson and other members of
the Appellate Board under sub-section (3) of section 19;
(o) the matters to be prescribed under clause (f) of sub-section (1) of section 21;
(p) the procedure of Appellate Board under sub-section (3) of section 21;
(q) any other matter in respect of which provision is to be made by rules
under this Act.

(3) Every rule made under this Act shall be laid, as soon as may be after it is
made, before the Legislative Assembly, while it is in session, for a total period of
fourteen days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session in which it is so laid or the session
immediately following, the Legislative Assembly makes any modification in the rule or
decides 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.
Power to remove difficulties
26. (1) If any difficulty arises in giving effect to the provision of this Act, the
Government may, by order published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act as may appear to it be necessary for
removing the difficulty:
Provided that no order shall be made under this section after the expiry
of three years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be
after it is made, before the Legislative Assembly of Puducherry and the provisions of
sub-section (3) of section 25 shall apply in respect of such order as they apply in respect
of a rule made under this Act.
_______
 540

STATEMENT OF OBJECTS AND REASONS FOR ACT 6 OF 2008

The geographic base of Indian marine fisheries has 8118 km. coastline, 2.02
million sq. km. of Exclusive Economic Zone (EEZ) including 0.5 million sq. km. of
continental shelf. Of this, the Union territory of Puducherry has 45 km. of coastline in
the regions of Puducherry, Karaikal and Mahe. Marine fisheries within the territorial
waters are the subject of maritime States, whereas fisheries beyond this limit within the
EEZ fall in the jurisdiction of the Central Government. Among the thirteen States /
Union territories, including the two island territories on the east and west coasts, all
other States / Union Territories except the Union territory of Puducherry have
promulgated Marine Fishing Regulations to regulate the various aspects of Marine
fishing like registration of vessels, issuing fishing licences to them and enforcing
measures aimed at conservation of the rich marine resources as well as their sustainable
exploitation. In the absence of such a regulation in our Union Territory, all these
measures could not be properly implemented and hence the need to introduce a
legislation for the purpose.

The draft Bill therefore seeks to achieve the above objects.

______
 541

THE PUDUCHERRY PREVENTION OF ANTI-SOCIAL ACTIVITIES ACT, 2008

(Act No. 10 of 2010)

____________________________________________________________________________

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Power to make orders detaining certain persons
4. Execution of detention orders
5. Power to regulate place and conditions of detention
6. Grounds of detention severable
7. Detention orders not to be invalid or inoperative on certain grounds
8. Powers in relation to absconding persons
9. Grounds of order of detention to be disclosed to detenu
10. Constitution of Advisory Boards
11. Reference to Advisory Board
12. Procedure of Advisory Board
13. Action upon report of Advisory Board
14. Maximum period of detention
15. Revocation of detention orders
16. Temporary release of persons detained
17. Protection of action taken in good faith
18. Matters within the purview of this Act to be dealt with under this Act only

______
 542

THE PUDUCHERRY PREVENTION OF ANTI-SOCIAL ACTIVITIES ACT, 2008

(Act No. 10 of 2010)

(5-12-2010)
An
Act

to provide for preventive detention of boot-leggers, dangerous persons, forest

offenders, gamblers, goondas and property grabbers for prevention of their anti-social
and dangerous activities prejudicial to the maintenance of public order.

BE it enacted buy the Legislative Assembly of Puducherry in the Sixtieth Year of

the Republic of India as follows:-

Short title, extent and commencement

1. (1) This Act may be called the Puducherry Prevention of Anti-social

Activities Act, 2008
(2) It extends to the whole of the Union territory of Puducherry.

(3) It shall come into force at once.

Definitions
2. In this Act, unless the context otherwise requires,-
(a) “anti- social activities” means the activities of a boot-legger, a dangerous
person, a forest offender, a gambler, a goonda or a property grabber which affect
adversely or, are likely to affect adversely the maintenance of public order.

Explanation.- For the purpose of this clause public order shall be deemed to
have been affected adversely or shall be deemed likely to be affected adversely, inter alia
if any of the activities of the persons referred to in this clause, directly or indirectly, is
causing or calculated to cause any harm, danger or alarm or a feeling of insecurity,
among the general public or any section thereof or a grave or widespread danger to life
or public health;
(b) “boot-legger” means a person, who distils, manufactures, stores,
transports, imports, exports, sells or distributes any liquor or other intoxicant in
contravention of any of the provisions of the Puducherry Excise Act, 1970(Act No12 of
1970) and the rules, notifications and orders made thereunder, or in contravention of
any other law for the time being in force, or who knowingly expends or applies any
money or supplies any animal, vehicles, vessel or other conveyance or any receptacle or
any other material whatsoever in furtherance or support of the doing of any of the
above-mentioned things by or through any other person, or who abets in any other
manner the doing of any such thing;
 543

(c) “dangerous person” means a person, who either by himself or as a

member of or leader of a gang, habitually commits or attempts to commit or abets, the
commission of offences, punishable under Chapter-XVI or Chapter-XVII or Chapter-
XXII of the Indian Penal Code (Central Act 45 of 1860) and includes a person who is
hired to commit or abet or attempt to commit any such offences;

(d) “detention order” means an order made under section3;

(e) “detenu” means a person detained under a detention order;

(f) “forest offender” means a person, who commits or attempts to commit or

abets the commission of offences, punishable under Chapter-VII of the Indian Forest
Act, 1927 (Central Act 16 of 1927) or under Chapter-VI of the Wild Life (Protection)
Act,1972 (Central Act 53 of 1972);

(g) “gambler” means one who indulges in gambling or unauthorized practice

of gambling such as illegal lotteries or speculations or the ones who connive in
gambling by providing facilities/premises for such gambling;

(h) “goonda” means one who by force, either alone or a part of a gang extorts
money or attempts to or connives in extortion of money, without any cause including
the ones who collect goonda tax and will include persons indulging in eve-teasing;

(i) “Government” means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the Constitution;

(j) “property grabber” means a person, who illegally takes possession of any
immovable property (whether belonging to Government, local authority or any other
person) or enters into, or creates illegal tenancies or lease or agreements or any other
agreement in respect of such property; or who constructs unauthorized structures on
such property for sale or hire, or gives such property to any person on rental or lease or
license basis for construction or use and occupation of unauthorized structures or who
knowingly gives financial aid to any person for taking illegal possession of such
property, or for construction of unauthorized structures, or who collects or attempts to
collect from any occupier of such property, rent, compensation or other charges by
criminal intimidation or who evicts or attempts to evict any such occupier by force
without resorting to the lawful procedure; or who abets in any manner the doing of any
of the above-mentioned things;
 544

(k) “unauthorized structure” means any structure constructed without express

permission in writing of the officer or authority having jurisdiction in such area
required under the Puducherry Town and Country Planning Act, 1969 (Act No 13 of
1970), the Puducherry Municipalities Act, 1973 (Act No.9 of 1973) and the Puducherry
Village and Commune Panchayats Act, 1973 (Act No.10 of 1973) or except in accordance
with any other law for the time being in force in such area.

Power to make orders detaining certain persons.

3. (1) The Government may, if satisfied with respect to any person that with a view
to preventing him from engaging in or making preparations for engaging in any anti-
social activity, it is necessary so to do, make an order directing that such person be
detained.

(2) If having regard to the circumstances prevailing or likely to prevail in any

area within the local limits of the jurisdiction of a District Magistrate, the Government is
satisfied that it is necessary so to do, it may, by an order in writing, direct that the
District Magistrate (hereinafter referred to as the authorized officer in this Act) may
also, if satisfied as provided in sub-section (1) exercise the powers conferred by the said
sub-section.

(3) When any order is made under this section by an authorized officer, he shall
forthwith report the fact to the Government, together with the grounds on which the
order has been made and such other particulars as, in his opinion, have a bearing on the
matter, and no such order shall remain in force for more than twelve days after the
making thereof, unless, in the meantime, it has been approved by the Government.

(4) When any order is made by the Government under sub-section (1) or by the
authorized officer under sub-section (2) the Government shall within seven days, report
the fact to the Central Government together with the grounds on which the order has
been made and such other particulars as, in the opinion of the Government, have a
bearing on the necessity for the order:

Provided that the Central Government may, after due consideration of the
order made either under sub-section (1) or sub-section (2) and for reasons to be
recorded in writing, modify or revoke any order made by the Government or the
authorized officer, as the case may be and the said order shall thereafter have effect only
in such modified form or be of no effect:

Provided further that any such modification or revocation shall be without

prejudice to the validity of anything previously done in pursuance of such order.
 545

Execution of detention orders

4. A detention order may be executed at any place in the Union territory of

Puducherry in the manner provided for the execution of warrant of arrest under the
Code of Criminal Procedure, 1973. (Central Act 2 of 1974)

Power to regulate place and conditions of detention

5. Every person in respect of whom a detention order has been made shall be
liable-

(a) to be detained in such place and under such conditions, including

conditions as to maintenance, discipline and punishment for breaches of discipline, as
the Government may, by general or special order, specify; and

(b) to be removed from one place of detention to another place of detention,

within the Union territory of Puducherry by order of the Government.

Grounds of detention severable

6. Where a person has been detained in pursuance of an order of detention

under section 3 which has been made on two or more grounds, such order of detention
shall be deemed to have been made separately on each ground and accordingly-

(a) such order shall not be deemed to be invalid or inoperative merely because
one or some of the grounds is or are-

(i) vague,
(ii) non-existent,
(iii) not relevant,
(iv) not connected or not proximately connected with such person, or
(v) invalid for any other reason whatsoever, and it is not, therefore,
possible to hold that the Government or the officer making such order
would have been satisfied as provided in section 3 with reference to
the remaining ground or grounds and made the order of detention;

(b) the Government or the officer making the order of detention shall be deemed
to have made the order of detention under the said section after being satisfied as
provided in that section with reference to the remaining ground or grounds.
 546

Detention orders not to be invalid or inoperative on certain grounds

7. No detention order shall be invalid or inoperative merely by reason-

(a) that the person to be detained thereunder, though within the Union
territory of Puducherry, is outside the territorial jurisdiction of the authorized officer
making the order, or
(b) that the place of detention of such person though within the Union
territory of Puducherry, is outside the said limits.

Powers in relation to absconding persons

8. (1) If the Government or any authorized officer has reason to believe that a
person in respect of whom a detention order has been made has absconded, or is
concealing himself so that the order cannot be executed, then the provisions of section
82 to 86 (both inclusive) of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974),
shall apply in respect of such person and his property subject to the modifications
mentioned in this sub-section and irrespective of the place where such person
ordinarily resides, the detention order made against him shall be deemed to be a
warrant issued by a competent court. Where the detention order is made by the
Government, an officer, not below the rank of a District Magistrate authorized by the
Government in this behalf , or where the detention order is made by an authorized
officer, the authorized officer, as the case may be, shall, irrespective of his ordinary
jurisdiction, be deemed to be empowered to exercise all powers of the competent court
under sections 82, 83, 84 and 85 of the said Code for issuing a proclamation for such
person and for attachment and sale of his property situated in any part of the Union
territory of Puducherry and for taking any other action under the said sections. An
appeal from any order made by any such officer rejecting an application for restoration
of attached property shall lie to the Court of Sessions having jurisdiction in the place
where the said person ordinarily resides, as provided in section 86 of the said Code.

(2) (a) Notwithstanding anything contained in sub-section (1) if the Government

or an authorized officer has reason to believe that a person in respect of whom a
detention order has been made has absconded or is concealing himself so that the order
cannot be executed, the Government or the officer, as the case may be, may, by order
notified in the official gazette, direct the said person to appear before such officer, at
such place and within such period as may be specified in the order.
 547

(b) Where such person fails to comply with such order, then unless he proves
that it was not possible for him to comply therewith and that he had, within the period
specified in the order, informed the officer mentioned in the order of the reasons which
rendered compliance therewith impossible and of his whereabouts, or proves that it
was not possible for him to so inform the officer mentioned in the order, he shall, on
conviction, be punished with imprisonment for a term which may extend to one year,
or with fine or with both.

(c) Notwithstanding anything contained in the said Code, every offence under
clause (b) shall be cognisable.

Grounds of order of detention to be disclosed to detenu

9. (1) When a person is detained in pursuance of a detention order, the authority

making the order shall, as soon as may be, but not later than seven days from the date
of detention, communicate to him the grounds on which the order has been made and
shall afford him the earliest opportunity of making a representation against the order to
the Government.

(2) Nothing in sub-section (1) shall require the authority to disclose facts which it
considers to be against the public interest to disclose.

Constitution of Advisory Boards

10. (1) The Government shall, whenever necessary, constitute one or more Advisory
Boards for the purposes of this Act.

(2) Every such Board shall consist of a Chairman who is or has been a Judge of a
High Court and two other members who are or have been District Judges qualified
under the Constitution to be appointed as Judges of a High Court.

Reference to Advisory Board

11. In every case where a detention order has been made under this Act, the
Government shall, within three weeks from the date of detention of a person under the
order, place before the Advisory Board constituted by it under section 10, the grounds
on which the order has been made and the representation, if any, made by the person
affected by the order, and where the order has been made by an authorised officer, also
the report made by such officer under sub-section (3) of section 3.
 548

Procedure of Advisory Board

12. (1) The Advisory Board shall, after considering the materials placed before it and
after calling for such further information as it may deem necessary from the
Government or from any person called for the purpose through the Government or
from the detenu and if, in any particular case, the Advisory Board considers it essential
so to do or if the detenu desires to be heard, after hearing the detenu in person, submit
its report to the Government, within seven weeks from the date of detention of the
detenu.

(2) The Report of the Advisory Board shall specify in a separate part thereof the
opinion of the Advisory Board as to whether or not there is sufficient cause for the
detention of the detenu.

(3) When there is a difference of opinion among the members forming the
Advisory Board, the majority of such members shall be deemed to be the opinion of the
Board.

(4) The proceedings of the Advisory Board and its report excepting that part of
the report in which the opinion of the Advisory Board is specified shall be confidential.

(5) Nothing in this section shall entitle any person against whom a detention
order has been made to appear by any legal practitioner in any matter connected with
the reference to the Advisory Board.

Action upon report of Advisory Board

13. (1) In any case where the advisory Board has reported that there is in its opinion,
sufficient cause for the detention of the detenu, the Government may confirm the
detention order and continue the detention of the detenu for a period, not exceeding the
maximum period prescribed by section 14 as it thinks fit.

(2) In any case where the Advisory Board has reported that there is in its opinion
no sufficient cause for the detention of the person concerned, the Government shall
revoke the detention order and cause the detenu to be released forthwith.

Maximum period of detention

14. The Maximum period for which any person may be detained in pursuance of
any detention order made under this Act which has been confirmed under section 13,
shall be one year from the date of detention.
 549

Revocation of detention orders

15. (1) Without prejudice to the provisions of section21 of the General Clauses Act,
1897 (Central Act 10 of 1897), a detention order may, at any time for reasons to be
recorded in writing, be revoked or modified by the Government , notwithstanding that
the order has been made by an authorized officer.

(2) The expiry or revocation of a detention order (hereinafter in this sub-section

referred to as the earlier detention order) shall not bar the making of another detention
order (hereinafter in this sub-section referred to as the subsequent detention order)
under section 3 against the same person:

(3) Provided that in a case where no fresh facts have arisen after the expiry or
revocation of the earlier detention order made against such person, the maximum
period for which such person may be detained in pursuance of the subsequent
detention order shall in no case extend beyond the expiry of a period of twelve months
from the date of detention under the earlier detention order.

Temporary release of persons detained

16. (1) The Government may, at any time, for reasons to be recorded in writing,
direct that any person detained in pursuance of a detention order may be released for
any specified period, either without conditions or upon such conditions specified in the
direction as that person accepts, and may, at any time, cancel his release.

(2) In directing the release of any detenu under sub-section (1), the Government
may require him to enter into a bond with or without sureties, for the due observance of
the conditions specified in the direction.

(3) Any detenu released under sub-section (1), shall surrender himself at the time
and place, and to the authority, specified in the order directing his release or cancelling
his release, as the case may be.

(4) If any detenu fails without sufficient cause to surrender himself in the manner
specified in sub-section (3), he shall on conviction, be punished with imprisonment for a
term which may extend to two years, or with fine, or with both.

(5) If any detenu released under sub-section (1) fails to fulfill any of the
conditions imposed upon him under the said sub-section or in the bond entered into by
him, the bond shall be declared to be forfeited and any person bound thereby shall be
liable to pay the penalty thereof.
 550

Protection of action taken in good faith

17. No suit, prosecution, or other legal proceeding shall lie against the Government
or any officer or persons, for anything in good faith done or intended to be done in
pursuance of this Act.

Matters within the purview of this Act to be dealt with under this Act only

18. On and after the commencement of this Act, no order of detention under the
National Security Act, 1980 (Central Act 65 of 1980) shall be made by the Government
or any officer subordinate to it, in respect of any boot-legger, dangerous person, forest
offender, gambler, goonda or property grabber in the Union territory of Puducherry on
the ground of preventing him from acting in any manner prejudicial to the maintenance
of public order, in so far as an order under this Act, could be made for detention of such
person.

_____

STATEMENT OF OBJECTS AND REASONS FOR ACT NO. 10 OF 2010

The Preventive detention laws enforced in the Union territory at present are the
National Security Act, 1980, the Conservation of Foreign Exchange and Prevention of
Smuggling Activities Act, 1974 and the Prevention of Black Marketing and Maintenance
of Supplies of Essential Commodities Act, 1980. These enactments are not sufficient and
effective to control anti-social activities of boot-leggers, persons who habitually commit
or abet the commission of offences affecting human body and against property and of
criminal intimidation, etc., forest offenders, gamblers, goondas, and property grabbers.
It is, therefore, proposed to bring about a local legislation to provide for preventive
detention of persons indulging in the above kinds of anti-social activities and for the
purpose, the term “anti-social activities” is defined to encompass the above activities.

The Bill seeks to achieve the above objects.

_______
 551

PART – II

THE UNION TERRITORIES RELIEF OF AGRICULTURAL

INDEBTEDNESS REGULATION, 1976.

[No. 1 or 1976]

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Stay of suits, etc.,
4. Extension of period of limitation
5. Remission of interest

_____
 552

THE UNION TERRITORIES RELIEF OF AGRICULTURAL

INDEBTEDNESS REGULATION, 1976.

[No. 1 or 1976]
[Promulgated by the President in the Twenty-sixth year of the Republic of India]
A Regulation to provide relief from indebtedness to agricultural
labourers, marginal farmers, rural artisans and small
farmers in certain Union territories

In exercise of the powers conferred by Article 240 of the Constitution, the

President is pleased to promulgate the following Regulation made by him:-

1. Short title, extent and commencement.- (1) This Regulation may be called the
Union Territories Relief of Agricultural Indebtedness Regulation, 1976.
(2) It extends to the Union territories” of the Andaman and Nicobar Islands,
Dadra and Nagar Haveli, Lakshadweep and Puducherry.
(3) It shall come into force at once.

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

(a) “Administrator” means the administrator of a Union territory appointed

by the President under Article 239 of the Constitution;
(b) “agricultural labourer” means a person who is engaged in the operation of-

(i) farming, including cultivation and tillage of soil; or

(ii) dairy farming; or
(iii) production, cultivation, growing and harvesting of any horticultural
commodity ; or
(iv) raising of live-stock, bees or poultry; or
(v) any practice performed on a farm as incidental to, or in conjunction
with, farm operations, (including any forestry or timbering
operations) and preparation for market, or delivery to storage or to
market, or to carriage for transportation, of farm products,
in the capacity of a labourer on hire or exchange and who is paid in cash or in kind or
partly in cash and partly in kind for such engagement;

1. Promulgated by the President on January 3, 1976, published in Gazette of India, Extra., Part 11, Section 1,
dated 3rd January, 1976, pp. 1-4.
 553

(c) “bank” means a banking company as defined in clause (c) of Section 5 of

the Banking Regulation Act, 1949 (10 of 1949), and includes the State Bank of India
constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as
defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a
corresponding new bank specified in the First Schedule to the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Agricultural
Refinance Corporation established under the Agricultural Refinance Corporation Act,
1963 (10 of 1963), any banking institution notified by the Central Government under
Section 51 of the Banking Regulation Act, 1949, and any other banking or financial
institution which the Administrator may, by notification in the Official Gazette, declare
to be a bank for the purposes of this Regulation;
(d) “civil court” includes-
(i) any court exercising jurisdiction under the Provincial Insolvency Act,
1920 (5 of 1920) ; and
(ii) any court exercising powers under the Provincial Small Cause Courts
Act, 1887 (9 of 1887);
(e) “co-operative society” means a society registered or deemed to be
registered under any law relating to co-operative societies for the time being in force in
a Union territory;
(f) “debt” includes all liabilities owing to a creditor in cash or in kind, secured
or unsecured, payable under a decree or order of a civil court or otherwise and
subsisting at the commencement of this Regulation whether due or not due but does not
include-
(i) a debt to the Central Government or any State Government, or the
administration or Government of any Union territory of any local
authority, or co-operative society or bank;
(ii) a debt to any Government company within the meaning of Section
617 of the Companies Act, 1956 (1 of 1956);
(iii) a debt to the Life Insurance Corporation of India established under
the Life Insurance Corporation Act, 1956 (3 of 1956) or to any other
corporation established by or under any law for the time being in
force;
(iv) any rent due in respect of any property let out to a debtor;
(v) any liability arising out of breach of trust or any tortious liability;
(vi) any liability in respect of wages or remuneration due as salary or
otherwise for services rendered
(vii) any liability in respect of maintenance whether under a decree of a
civil court or otherwise
(viii) any debt which represents the price of any goods or property
purchased by a debtor;
(ix) any advance of money given to a debtor by a person as the price of
goods or property to be sold later on by the debtor;
(x) any sum recoverable as arrears of land revenue;
 554

(g) “debtor” means an agricultural labourer, a marginal farmer, a rural artisan

or a small farmer;

(h) “marginal farmer” means a person who owns agricultural land measuring
not more than one hectare and who cultivates personally such land, and includes a
person who cultivates such land measuring not more than one hectare as a tenant or
share cropper;

Provided that in its application to persons belonging to any Scheduled, Tribe,

this clause shall be subject to the modification that for the words ‘one hectare’, in both
the places where they occur, the words ‘two hectares’ shall be substituted;

(i) “rural artisan” means a person who does not hold any agricultural land
and whose principal means of livelihood is production or repair of traditional tools,
implements and other articles or things used for agricultural or purposes ancillary
thereto and includes a person who normally earns his livelihood by practicing a craft
either by his own labour of all or any of the members of his family in a rural area;

(j) “small farmer” means a person who owns agricultural land measuring
more than one hectare but less than two hectares, or who cultivates such land
measuring more than one hectare but less than two hectares as a tenant or share
cropper:

Provided that in its application to person belonging to any Scheduled, Tribe, this
clause shall be subject to the modification that for the words ‘one hectare’ and ‘two
hectares’, in both the places where they occur, the words ‘two hectares’ and four
hectares shall respectively be substituted;

(k) “suit” includes appeal.

3. Stay of suits, etc.- (1) Notwithstanding any thing contained in any other law
for the time being in force or in any contract, custom or usage to the contrary,-

(i) no civil court shall entertain any suit, application or other proceeding
against a debtor in respect of any debt incurred by him;
(ii) any suit, application or other proceeding in relation to the recovery of
a debt from a debtor pending immediately before the commencement
of this Regulation before a civil court shall be stayed; and
(iii) no decree of a civil court in relation to the recovery of a debt from a
debtor which was passed before the commencement of this
Regulation shall be executed,

for a period of one year from such commencement.

 555

(2) The Administrator may, by notification in the Official Gazette, extend the
period referred to in sub-section (1) by a further period or periods:

*[Provided that such further period or the aggregate of such further periods shall
not exceed three year].

4. Extension of period of limitation.- Notwithstanding anything contained in

any other law for the time being in force, in computing the period of limitation for any
suit, proceeding or application, or for the execution of a decree, the period during
which any person was debarred, from instituting such a suit or proceeding or making
such application or executing such decree, under this Regulation shall be excluded.

5. Remission of interest.- A debtor shall not be liable to pay interest on any debt
during the period for which no suit or proceeding could be instituted or application
made for the recovery of the debt or for the execution of a decree in relation thereto or
for which a suit, or an application or other proceeding for the recovery of the debt was
stayed under this Regulation.

_____

* Substituted by Regulation 1 of 1979 and deemed to have come into force w.e.f 29.06.1978.
 556

THE PUDUCHERRY IRRIGATION (LEVY OF BETTERMENT

CONTRIBUTION) REGULATION, 19761

[No. 4 of 1976]

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement.

2. Definitions.
3. New ayacut Zones.
4. Blocks under ayacut Zone.
5. Levy of betterment contribution on the lands in the new ayacut.
6. Levy of betterment contribution on lands in the improved old ayacut.
7. Exclusion of certain lands from ayacut in certain cases.
8. Authorised officer to levy contribution.
9. Appeal.
10. Contribution how paid.
11. When contribution becomes payable.
12. Relinquishment or exchange of land in lieu of payment of contribution.
13. Rebate in certain cases.
14. Payment of contribution by person having interest in land.
15. Right of reimbursement in respect of contribution.
16. Apportionment of contribution.
17. Contribution recoverable as arrears of land revenue.
18. Exemption.
19. Delegation of powers.
20. Regulation deemed not to affect recovery in certain cases.
21. Power to make rules.
22. Saving.

In exercise of the powers conferred by the second proviso to clause (1) of Article
240 of the Constitution, the President is pleased to promulgate the following Regulation
made by him:

_______
 557

THE PUDUCHERRY IRRIGATION (LEVY OF BETTERMENT

CONTRIBUTION) REGULATION, 19761

[No. 4 of 1976]
24-01-1976
[Promulgated by the President in the Twenty-sixth Year of the Republic of India]

A Regulation to provide for the levy of betterment contribution on certain lands in the
Union territory of Puducherry

1. Short title, extent and commencement.- (1) This Regulation may be called the
Puducherry Irrigation (Levy of Betterment Contribution) Regulation, 1976.
(2) It extends to the whole of the Union territory of Puducherry.
(3) It shall come into force on such date as the Government may, by
notification, appoint.

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

(1) “contribution” means the betterment contribution referred to in Section 5
or Section 6;
(2) “drainage work” includes-
(a) channels, whether natural or artificial, for the discharge of waste or
surplus water and all works connected with, or auxiliary to, such
channels;
(b) escape channels from an irrigation work;
(c) dams, weirs, embankments, sluices and groynes;
(d) all works for the protection of lands from floods or from erosion,
which are owned or controlled by the Government, or which are
maintained by it, otherwise than by an assignment of land or land
revenue made, confirmed, or recognised by the Government, or which,
having been constructed by the Government or being maintained by
an assignment of land or land revenue as aforesaid, have not been
made over to any person,

but does not include any works for the removal of sewage;
(3) “execution”, in relation to a notified work, means the construction,
expansion, or alteration of the notified work;
(4) “fasli year” means the year commencing on the 1st day of July of a year
and ending with the 30th day of June of the next year;
(5) “Government” means the Administrator of the Union territory of
Puducherry appointed by the President under Article 239 of the Constitution;
______________________________________________________________________________
1. Promulgated by the President on January 24, 1976, published in Gazette of India, Extra., Part II, Section 1,
dated 24th January, 1976, pp. 17-25.
________________________________________________________________________________________________________
 558

(6) “improved old ayacut”, in relation to a notified work, means all lands
which are significantly benefited by the execution of the notified work but does not
include the ayacut of any existing irrigation or drainage work which has been merely
repaired or restored to its original state after decay or injury;

Explanation I.- For the purposes of this clause, lands shall he deemed to be
significantly benefited by the execution of a notified work if such lands-

(a) having been under single-crop irrigation or double-crop irrigation

from a Government source of irrigation before the execution of the
notified work, continue to be under such irrigation and are provided
with a more adequate supply or better assured supply of water for
irrigation as a result of the execution of the notified work, or
(b) having been liable to non-beneficial submersion or stagnation of water
before the execution of the notified work, have been substantially
relieved of such submersion or stagnation as a result of the execution
of the notified work:

Provided that no land shall be deemed to be significantly benefited if the more

adequate supply or better assured supply of water for irrigation referred to in clause (a)
of this Explanation or the substantial relief of submersion or stagnation referred to in
clause (b) of this Explanation is as a result of mere repairs or restoration of the existing
irrigation work or drainage work to its original state after decay or injury;

Explanation II.- For the purposes of Explanation I, the question whether any land-

(a) is provided with a more adequate supply or better assured supply of

water for irrigation shall be decided with regard to -

(i) the raising of the irrigation source concerned to a higher settlement

classification;
(ii) supply of larger volume of water or supply of water for a longer
duration; and
(iii) such other like matters as may be prescribed;

(b) has been substantially relieved of the non-beneficial submersion or

stagnation of water shall be decided with regard to-

(i) the improvement of the land on account of the protection from

submersion or stagnation or on account of the reduction in the period of
submersion or stagnation; and
(ii) such other like matters as may be prescribed.
 559

Explanation III.—A land shall be deemed to be significantly benefited

notwithstanding that the benefit is not enjoyed, provided that such non-enjoyment is
due solely to action or inaction on the part of the person or persons interested in such
land
(7) “irrigation work” includes-

(a) all canals, channels, tanks, wells, reservoirs, ponds, spring ponds and
madugues used for the supply or storage of water, and all works,
embankments and structures (other than escape channels) connected
therewith or auxiliary thereto, which are owned or controlled by the
Government, or which are maintained by it, otherwise than by an
assignment of land or land revenue made, confirmed or recognised by the
Government, or which, having been constructed by the Government or
being maintained by an assignment of land or land revenue as aforesaid,
have not been made over to any person;
(b) all such lakes and other natural collections of water or parts thereof, as are
situated on lands which are the property of Government;
(c) all rivers and natural streams or parts thereof;

(8) “land-holder”, in relation to any land, means the person who is in enjoyment
of the said land and who has been benefited by any irrigation work;
(9) “new ayacut”, in relation to any notified work, means all lands which are
benefited by the execution of the notified work;.

Explanation I.- For the purposes of this clause, lands shall be deemed to be
benefited by the execution of a notified work, if such lands-

(a) having been left waste or under unirrigated cultivation before the
execution of the notified work, have been brought under irrigation
subsequently with water supplied from a Government source of
irrigation as a result of the execution of the notified work, or
(b) having been under single-crop irrigation before the execution of the
notified work, have been brought under double-crop irrigation
subsequently with water supplied from a Government source of
irrigation as a result of the execution of the notified work;

Explanation II- A land shall be deemed to be benefited notwithstanding that the

benefit is not enjoyed, provided that such non-enjoyment is due solely to action or
inaction on the part of the person or persons interested in such land;

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

 560

(11) “notified work” means any irrigation work or drainage work, executed on
or after the 1st November, 1954 and notified by the Collector in the Official Gazette;
(12) “prescribed” means prescribed by rules made under this Regulation.

3. New ayacut Zones.- (1) Any new ayacut in every notified work may be
classified into one or more of the following zones, namely-
(i) wet zone;
(ii) intermediary zone; or
(iii) irrigated dry zone.

(2) A wet zone shall comprise all the lands for which the water supplied as a
result of the execution of a notified work will be ordinarily sufficient for one wet crop in
a fasli year.
(3) An intermediary zone shall comprise all the lands for which the water
supplied as a result of the execution of a notified work will be occasionally sufficient for
one wet crop and will be ordinarily sufficient for one irrigated dry crop in a fashi year.
(4) An irrigated dry zone shall comprise all the lands for which the water
supplied as a result of the execution of a notified work will be ordinarily sufficient for
one irrigated dry crop in a fasli year but not sufficient for one wet crop in any fasli year.

4. Blocks under ayacut Zone.- (l) Every wet zone, every intermediary zone or
every irrigated dry zone may consist of Block A, Block B, Block C, as classified below,
namely:
(a) Block A shall consist of contiguous wet lands of Class 1, Class 2,
Class 3, or Class 4;
(b) Block B shall consist of contiguous wet lands of Class 5;
(c) Block C shall consist of contiguous wet lands of Class 6.

(2) Dry lands shall be classified according to the corresponding class rates.

Explanation.- In this section, Classes 1, 2, 3, 4, 5 and 6 shall refer to the respective

classes under which the lands have been registered in the revenue records.

5. Levy of betterment contribution on the lands in the new ayacut.- There shall
be levied a betterment contribution on every hectare of land in any new ayacut in
accordance with the rates specified in the Schedule:
Provided that no betterment contribution shall be levied on any land in any new
ayacut under a notified work, the cost of which does not exceed seventy-five thousand
rupees.
6. Levy of betterment contribution on lands in the improved old ayacut.- (1)
There shall be levied a betterment contribution on every hectare of land in any
improved old ayacut in accordance with the provisions of this seetion:
 561

Provided that no betterment contribution shall be levied on any land in any

improved old ayacut under a notified work, the cost of which does not exceed
seventy-five thousand rupees.

(2) The net expenditure on the notified work shall be ascertained by deducting
from the gross expenditure on such work twenty times the annual increase in revenue,
if any, from all the lands comprised in the improved old ayacut and in the new ayacut
and the net expenditure as so ascertained shall be apportioned in the prescribed manner
on all lands comprised in the improved old ayacut.

Explanation.- The expression “annual increase in revenue” means the increase in

assessment and the increase in water-cess ascertained in the prescribed manner where
such increase is as a result of the execution of the notified work.

(3) The betterment contribution shall, subject to a maximum of one hundred

and twenty-five rupees per hectare, be one-third of the net expenditure per hectare of
land apportioned under sub-section (2).

7. Exclusion of certain lands from ayacut in certain cases.- (1) Any officer of the
Revenue Department not below the rank of a Revenue Officer specially authorised by
the Government in this behalf (hereinafter referred to as the authorised officer) may,
from time to time, postpone the inclusion of any land in the ayacut of a notified work
for such period as he may, by order in writing, specify on the ground that such land
requires expensive lowering of the level or on such other ground as may be prescribed.

Explanation.- For the purposes of this sub-section, “expensive lowering of the

level” means any reclamation involving expenditure exceeding two hundred and fifty
rupees per hectare.

(2) Where the period specified in any order under sub-section (1) expires, the
land referred to in that sub-section shall be deemed to be included in the ayacut
aforesaid and the Government shall be entitled to levy contribution under this
Regulation on such land with effect from the fasli year in which such land shall be
deemed to be included in the ayacut under this sub-section.
(3) Where any land included in the ayacut of a notified work is not fit for the
irrigation on the date of such inclusion for such reasons as may be prescribed and is
subsequently brought under irrigation, the Government shall be entitled to levy
contribution under this Regulation on such land with effect from the fasli year in which
the land is so brought under irrigation.

8. Authorised officer to levy contribution.- Every authorised officer shall, after

following such procedure as may be prescribed, by order, levy the contribution under
this Regulation in respect of any land situated within his jurisdiction:
 562

Provided that where the ayacut of a notified work lies within the jurisdiction of
more than one authorisecl officer, the Government may, by general or special order,
specify the officer who should levy the contribution in respect of lands in such ayacut.

9. Appeal.- (1) Any person aggrieved by an order of the authorised officer with
respect to the levy of contribution under this Regulation may prefer an appeal to the
prescribed authority in such form, in such manner and within such time, as may be
prescribed and such authority may make each order in the case as it may think fit:

Provided that before making any order under this section the prescribed
authority shall give a reasonable opportunity to the affected person for making a
representation in the matter.

(2) Any order made by the authorised officer with respect to the levy of
contribution under this Regulation shall, subject to the right of appeal provideci in
sub-section (1), be final, shall be binding on all persons having interest in the land and
shall not be liable to be questioned in a court of law.

10. Contribution how paid.- ( 1) The contribution payable by a land-holder shall

be paid by him in annual instalments.
(2) The annual instalments per hectare shall be twelve rupees and fifty paise
or one-twentieth of the total amount of the contribution payable by him, whichever is
higher:

Provided that a land-holder shall be entitled to pay within a period of two years
from the date on which he becomes liable to pay the contribution the entire amount of
contribution with a rebate at such rate as may be prescribed.
(3) Arrears of instalments of the contribution shall bear interest at the rate of
six per cent per annum and such interest shall be recoverable as arrears of land revenue.

11. When contribution becomes payable.- (1) The contribution shall become
payable under this Regulation on a written notice of demand therefor issued by the
authorised officer being served on the land-holder:
Provided that no such notice shall be served until the expiry of two years after
the date of completion of the execution of the notified work:
Provided further that where, before the commencement of this Regulation, two
years or more have elapsed from the date of completion of the execution of the notified
work, such notice may be served at any time after such commencement.
(2) For the avoidance of doubt, it is hereby declared that it shall not be
necessary to serve notice on any person other than the land-holder, who has an interest
in the land or on a successor-in-interest of the land-holder or in respect of any
instalment of the contribution.
 563

(3) (a) For the purpose of this section, the execution of a notified work shall be
deemed to be completed on the date of cessation of all work connected with its
execution or on the date when the notified work is ready to be put in actual operation
whichever is later.
(b) The date referred to in clause (a) shall be notified by such authority or
officer and in such manner, as may be prescribed.
12. Relinquishment or exchange of land in lieu of payment of contribution.-
Notwithstanding anything contained in Section 10, the Government may allow the
owner of the land on which the contribution may be payable to relinquish the whole or
any part of the land or to deliver it in exchange in favour of the Government on such
condition as may be prescribed:
Provided that no such relinquishment or exchange shall be permitted unless the
land is free from encumbrances.

13. Rebate in certain cases.- If the Government accepts any money from any
person for the execution of any notified work and such person becomes liable to pay
contribution in respect of any land benefited by such execution, the sum accepted from
him shall be credited towards the contribution payable by him.

14. Payment of contribution by person having interest in land.- Any person

having interest in a land may, notwithstanding that he is not the land-holder of such
land, pay the contribution payable by the land-holder in respect of such land and shall,
if such person pays the entire contribution within a period of two years from the date
on which the land-holder becomes liable to pay the contribution, be entitled to a rebate
at such rate as may be prescribed.

15. Right of reimbursement in respect of contribution.- Where the land-holder

liable to pay contribution under this Regulation is not the owner of the land or is a
co-owner of the land, nothing in this Regulation shall be deemed to affect his right to
reimbursement from the owner or to recover proportionate part from the co-owner, as
the case may be.
16. Apportionment of contribution- Where a land-holder whose case is not
covered by Section 15 and who has paid an instalment of contribution under this
Regulation is not the occupier of the land, he shall, in the absence of a contract to the
contrary, be entitled to recover the amount of such instalment from the person who is in
actual occupation of the land during the year in which the said instalment is payable:
Provided that where such person is a tenant, the land-holder shall be entitled to
recover from the tenant the instalment of contribution referred to in this section only if
the tenant is liable under any law or custom of the locality to deliver to the land-holder
a share of the produce and such share has not been altered subsequent to the
completion of the work by agreement between the parties, and the amount that can be
recovered from such a tenant shall bear to the total amount of the instalment the same
proportion as the tenant’s share of the produce bears to the total produce of the land:
 564

Provided further that, where the land-holder has paid the entire contribution
with a rebate under the proviso to sub-section (2) of Section 10, a twentieth part of the
sum actually paid shall be deemed to be the instalment of the contribution payable
during every year during which an instalment of the contribution would have been
payable, had the entire contribution not been so paid.
17. Contribution recoverable as arrears of land revenue.- (1) The contribution
payable under this Regulation in respect of any land shall deemed be to be public
revenue due upon the said land; and the land and its products and the buildings
(owned and occupied by the land-holder) standing upon the land shall be regarded as
the security of the contribution.
(2) When the whole or portion of an instalment of the contribution payable in
any year is not paid on the due date, the amount of the instalment or its unpaid portion
shall be deemed to be an arrear of land revenue and the provisions of the law, for the
time being in force, relating to recovery of land revenue shall apply to the recovery of
the said arrear as they apply to recovery of the land revenue due on the land.
18. Exemption.- If, in the opinion of the Government, the enforcement of all, or
any of the provisions of this Regulation will cause hardship to any person or class of
persons, the Government may, by notification, setting out the ground therefor, exempt
either permanently or for a specified period, such person or class of persons from all or
any of the provisions of this Regulation, subject to such conditions, if any, as the
Government may deem fit to impose.
19. Delegation of power.- The Government may, by notification, direct that any
power exercisable by it under this Regulation (except the power to grant exemption
under Section 18 and the power to make rules under Section 21) shall, subject to such
conditions, if any, as may be specified in the direction, be exercisable also by the
Collector or such other authority, as may be specified in the direction.
20. Regulation deemed not to affect recovery in certain cases.- Subject to the
provisions of Section 13, nothing contained in this Regulation shall be deemed to limit
or otherwise affect the power of the Government to recover any money which any
land-holder of any land included in the ayacut of any notified work may have agreed
before the date of the commencement of this Regulation, or may agree after that date, to
pay to the Government as a condition precedent to the execution of any such work.
21. Power to make rules.- (1) The Government may, by notification, make rules
to carry out the purposes of this Regulation and in particular-
(a) for the matters to be prescribed under Exalanation II to clause (6) of
Section 2;
(b) for the manner of classification of dry lands under sub-section (2) of
Section 4;
(c) for the manner of apportioning the net expenditure, and of ascertaining
the increase in assessment and the increase in water-cess, under
sub-section (2) of Section 6;
(d) for the procedure to be followed by the authorised officer before the
levy of contribution under this Regulation;
 565

(e) for the appointment of the prescribed authority under sub-section (1)
of Section 9, the form and manner in which, and the time within
which, appeals may be preferred and the fees payable in respect
thereof and the procedure which may be followed by such prescribed
authority;
(f) for aft matters expressly required or allowed by this Regulation to be
prescribed.
(2) Every rule made under this Regulation shall, as soon as possible after it is
made, be laid before the Legislative Assembly while it is in session for a total period of
fourteen days which may be comprised in one session or in two successive sessions, and
if, before the expiry of the session, in which it is so laid or the session immediately
following, the Legislative Assembly makes any modification in the rule or decides 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.
22. Saving.- Nothing contained in this Regulation shall apply to the levy,
determination, payment or recovery of contribution from the land-holders of lands
which are benefited, or are capable of being benefited, by the construction, expansion or
alteration of any irrigation or drainage work if provision in that behalf is contained in
any other law relating thereto and for the time being in force.

THE SCHEDULE
(See Section 5)
Schedule of rates per hectare
New ayacut
Wet Zone Intermediary Irrigated dry
Zone Zone
(1) (2) (3)
P. P. P.
Block A 500.00 425.00 350.00
Block B 450.00 375.00 300.00
Block C 400.00 325.00 260.00

Provided that land-holders of lands which were un-irrigated immediately before

the execution of the notified work and which are newly assured with the supply of
water for two wet crops as a result of the execution of the said notified work shall pay
betterment contribution at the rate of one hundred and twenty-five rupees per hectare
in addition to the rates specified in this Schedule.
_____
 566

THE PUDUCHERRY IRRIGATION CESS REGULATION, 19761

[No. 5 of 1976]

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement

2. Definitions
3. Levy and rate of irrigation cess
4. Land deriving benefit from percolation liable to irrigation cess
5. Penalty for irregular irrigation, remission of penalty and revision
6. Liability when water runs to waste
7. Liability to pay cess, penalty, etc.
8. Recovery of amount, etc.
9. Power to make rules

THE FIRST SCHEDULE

THE SECOND SCHEDULE

______
 567

THE PUDUCHERRY IRRIGATION CESS REGULATION, 19761

[No. 5 of 1976]

[Promulgated by the President in the Twenty-seventh Year of the Republic of India]

A Regulation to levy a cess for the use of water supplied for irrigation
purposes in certain cases in the Union territory of Puducherry

In exercise of the powers conferred by the second proviso to clause (1) of Article
240 of the Constitution, the President is pleased to promulgate the following Regulation
made by him:

1. Short title, extent and commencement.- (1) This Regulation may be called the
Puducherry Irrigation Cess Regulation, 1976.

(2) It extends to the whole of the Union territory of Puducherry.

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

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

(a) “canal” includes-

(i) channel, pipe and reservoir constructed, maintained or controlled by

Government for the supply or storage of water;
(ii) any work, embankment, structure, and supply and escape- channel
connected with any canal or with such channel, pipe or reservoir, and
any road constructed for the purpose of facilitating the construction
or maintenance of any canal or such channel, pipe or reservoir;
(iii) any part of a river, stream, lake, natural collection of water or natural
drainage-channel;

______________________________________________________________________________
1. Promulgated by the President on February 13, 1976, published in Gazelle of India, Extra., Part II, Section 1,
dated 13th February, 1976, pp. 221-230.
 568

(b) “Collector” means the chief officer in charge of the revenue administration
of the Union territory of Puducherry and includes, in relation to any function to be
performed by the Collector under this Regulation, such other officer as the Government
may, by notification in the Official Gazette, appoint for the purpose;

(c) “fasli” means the year commencing on the 1st day of July of a year and
ending with the 30th day of June of the next year;

(d) “Government” means the administrator of the Union territory of

Puducherry appointed by the President under Article 239 of the Constitution;

(e) “lands under irrigable command of a canal” means such lands as are
irrigated or capable of being irrigated from the canal, being under its command and
includes such lands as shall be deemed to be irrigated within the meaning of Section 4;

(f) “prescribed” means prescribed by rules made under this Regulation;

(g) “project areas” means areas under Cauveri Mettur Project and the Veedur
Project and includes such other areas as the Government may, by notification in the
Official Gazette, specify, from time to time, as project areas for the purposes of this
Regulation.

3. Levy and rate of irrigation cess.- (l) There shall be levied before the end of
every fasli succeeding that in which the irrigation takes place a cess called the irrigation
cess in respect of every land under irrigable command of a canal:

Provided that no irrigation cess shall be leviable in respect of water supplied or

used for the irrigation of any land which is classified and assessed as wet, unless such
land is irrigated whether voluntarily or involuntarily and whether wholly or in part,-

(i) from any source other than a source assigned by the Revenue
Department or adjudged by a competent civil court as the source of
irrigation of such land; or
(ii) from any source assigned by the Revenue Department or adjudged
by a competent civil court as the source of irrigation of such land
otherwise than in accordance with any notification or order of the
Government or of any authority subordinate thereto, regulating or
specifying the time, method and conditions of supply of water for the
irrigation of such land from such source and the number of crops
which may be irrigated on such land with such supply, free of
separate charge.
 569

(2) Subject to the provisions of the First Schedule, the Government may, by
notification in the Official Gazette, from time to time, specify the rates of irrigation cess,
to be levied under sub-section (1) not exceeding the rates specified in that Schedule.
(3) Nothing in this section shall apply to any land referred to in Section 4.

4. Land deriving benefit from percolation liable to irrigation cess.- If it shall

appear to the Collector that any cultivated land-
(a) receives by percolation or leakage from a canal an advantage
equivalent to that which would be given by a direct supply of canal water for
irrigation; or
(b) derives by a surface-flow, or by means of a well sunk within forty- five
metres of any canal after the admission of water into such canal, a supply of
water which has percolated or leaked from such canal, he may levy on such land
the irrigation cess at the rate specified under Section 3.

Explanation.- For the purposes of this Regulation, any land deriving benefit under
clause (a) or clause (b) shall be deemed to be land irrigated from a canal.

Penalty for irregular irrigation, remission of penalty and revision.

5. (1) In addition to the irrigation cess, there shall be levied in respect of any land
under irregular irrigation a penalty at such rates and in accordance with such
conditions as are specified in the Second Schedule.
Explanation: Irrigation is said to be “irregular” when water from a
Government source or work is taken or used in the following cases, namely:-

(i) when the water is taken or used for any land registered as wet in
the revenue records otherwise than in accordance with the
conditions on which it is so registered; or
(ii) when the water is taken or used for any other land otherwise than
under and in accordance with the terms of a general or special
permit in force issued by any authority competent to issue such
permit; or
(iii) when the water is taken or used for any land in a manner involving
any authorised interference with an irrigation or drainage work
such as cross-bunding a channel, making a cut or hole in the bund,
opening or breaking a sluice, changing a pipe, or altering the
position of a pipe; or
(iv) when the water is taken or used for any land contrary to the orders
of any authority competent to give such orders; or
(v) when the water is taken or used for any land in breach of any rule
directing from what source or on what conditions water may be
taken or used for such land.
 570

(2) The Collector may, for reasons to be recorded in writing and subject to
such rules as may be made in this behalf, remit the whole or any part of the penalty
leviable under sub-section (1).
(3) The Government may call for and examine any record relating to such
remission for the purpose of satisfying itself of the regularity or propriety of such
remission and may modify or reverse the decision of the Collector.

6. Liability when water runs to waste.- When water taken from a source or work
under the control of the Government be suffered to run to waste by any act or
negligence of a person or a group of persons, such person or group of persons shall be
liable to pay a penalty not exceeding the irrigation cess that could be levied under the
First Schedule.

7. Liability to pay cess, penalty, etc.- The irrigation cess under Section 3 or under
Section 4 or the penalty under Section 5 or any arrears thereof shall be payable by such
persons as are liable to pay the land revenue under any law for the time being in force.

8. Recovery of amount, etc.- Any amount payable under Section 7 or the penalty
payable under Section 6 shall be recoverable as an arrear of land revenue.

9. Power to make rules.- (l) The Government may make rules for carrying out
the purposes of this Regulation.
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may provide for-
(a) the procedure to be followed in the levy of irrigation cess and penalty;
and
(b) any other matter which is to be, or may be, prescribed.

(3) Every rule made under this Regulation shall, as soon as may be after it is
made, be laid before the Legislative Assembly while it is in session for a total period of
fourteen days which may be comprised in one session or in two or more successive
sessions and if before the expiry of the session in which it is so laid or the sessions
aforesaid, the Assembly makes any modification in the rule or decides 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.
 571

THE FIRST SCHEDULE

[See Section 3 (2) and 6]

PART I
WET LANDS

(Lands registered in the revenue records as single crop wet lands under
the same source of irrigation under which they are registered)

A.- Crops which ordinarily remain on the ground for more than six months.

Sl. Crops Maximum rate of irrigation cess

No.
(1) (2) (3)

1. Crops grown and harvested in the same Half the wet assessment on the
fasli land.
2. Crops grown in one fasli and harvested in
the next fasli-
(i) if no other irrigated crop is raised in No cess in either fasli.
either fasli,
(ii) if one other irrigated crop is raised No cess in the first fasli.
either before or after such crop. One-half of the wet assessment on
the land in the second fasli.
(iii) if two other irrigated crops are raised, No cess in the first fasli.
one before and one after such crop, Full wet assessment on the land in
the second fasli.
3. Crops existing on lands for two years or Half the wet assessment on the land
more in each fasli.
 572

B.- Where two crops are raised.

Sl. Crops Maximum rate of irrigation cess

No.
First Crop Second Crop First Crop Second Crop
(1) (2) (3) (4)

1. Wet Wet No cess Half the wet assessment on

the land.
2. Wet Dry systematically Do.
irrigated
3. Wet Dry occasionally Do.
irrigated
4. Dry Wet No. cess The rate leviable for a similar
systematically irrigated. crop raised on dry lands,
subject to the maximum of
half the wet assessment on
the land.
5. Dry Dry occasionally Do.
systematically irrigated. irrigated
6. Dry occasionally Wet Do.
Irrigated.
7. Dry occasionally Dry Do.
Irrigated. systematically irrigated.
8. Dry occasionally Dry occasionally Do.
Irrigated. irrigated

C.- Where more than two crops are raised.

Crop Maximum rate of irrigation cess

(1) (2)
Third Crop The difference between half the wet
assessment on the land and the rate
leviable under B. above or the second crop.
 573

PART II
LANDS OTHER THAN WET LANDS

A.- Crops which ordinarily remain on the ground for more than six months.

Maximum rate of irrigation cess per hectare

Lands under project areas Lands under other areas
. P. . P.
112.50 75.00

B.- Crops other than those covered by A. above:

(i) where two crops are raised:

Sl. Crop Maximum rate of irrigation cess per hectare for

No. each crop
First Crop Second Crop Lands under Lands under
project areas Other areas
First Second First Second
Crop Crop Crop Crop

(1) (2) (3) (4) (5) (6) (7)

. P. . P. P. P.
1. Wet Wet 75.00 37.50 50.00 25.00
2. Wet Dry 75.00 28.14 50.00 18.75
systematically
irrigated
3. Wet Dry occasionally 75.00 18.75 50.00 12.50
irrigated
4. Dry Wet 56.25 46.89 37.50 31.25
systematically
irrigated
5. Dry Dry 56.25 37.50 37.50 25.00
systematically systematically
irrigated irrigated
6. Dry Dry occasionally 56.25 28.14 37.50 18.75
systematically irrigated
irrigated
7. Dry occasionally Wet 37.50 56.25 23.00 37.50
irrigated
8. Dry occasionally Dry 37.50 46.89 25.00 31.25
irrigated systematically
irrigated
9. Dry occasionally Dry occasionally 37.50 37.50 25.00 25.00
irrigated irrigated
 574

(ii) where third crop is raised:

Sl. Crop Maximum rate of irrigation cess per hectare for

No. the third crop
Lands under project Lands under other
area areas

(1) (2) (3) (4)

P. P.
1. Wet 37.50 25.00
2. Dry, whether
systematically or
occasionally irrigated
18.75 12.50
Explanations: (1) The expression “systematically irrigated” refers to the irrigation of dry
crops like ragi, cholam, cumbu, groundnut and chillies;
(2) The expression “occasionally irrigated” refers to the irrigation of dry
crops like rainfed cumbu and gingelly;
(3) The expression “wet assessment” refers to the land assessment in
respect of land registered as wet lands in the revenue records under
the settlement in force from time to time.

CONDITIONS
1. (i) Cocoanut and other tope plantations on single crop wet land shall be
treated as crops remaining on ground for more than six months if water is taken for a
number of months in a fasli sufficient for raising two rice crops, that is for more than six
months.
(ii) Such trees, if more than three years’ old, shall not be treated as irrigated
crops, unless they are irrigated otherwise than by percolation.
(iii) Where isolated trees are grown on bunds of fields or elsewhere, every
tree shall be deemed to occupy 3 ares, and the irrigation cess levied accordingly.

2. Irregular irrigation of wet lands shall be treated as dry lands for the purpose of
levy of irrigation cess and the cess shall be levied accordingly.
3. The charge per hectare for crops irrigated by means of mechanical
contrivances shall be three-fourths of the rates levied for irrigation by direct flow,
provided that the land has not also been irrigated by direct flow from a Government
source. This shall apply also to irrigation by means of water carried in pots, provided
that backyard cultivation so carried on shall be altogether exempt from charge.

4. Where portions of a field are irrigated, the charge shall be calculated on the
actual extent irrigated.
5. Where two or more crops of different kinds liable to different rates of irrigation
cess are cultivated, the levy shall be regulated according to the area under each crop.
 575

6 .Any variety of paddy which is harvested only once shall be treated as a single
crop for the purpose of levy of irrigation cess irrespective of the period for which water
is required for it.
7. In the case of ottadam cultivation on single crop wet lands, no irrigation cess
shall be levied although the whole crop requires water for more than six months. If the
lands are dry, the ottadam or samba crops standing on the ground after the harvest of
the first crop shall not be treated as a second crop for the levy of irrigation cess.
8. Casuarina, bamboo and other timber and fuel plantations shall be treated as
dry crops and one-third of irrigation cess for the first wet crop shall be levied for their
irrigation on single crop wet lands. If the lands are dry, the irrigation cess shall be
levied as for single crop or crops remaining on ground for more than six months,
according to the number of months during which the water is actually taken.

EXEMPTIONS
1. No irrigation cess shall be leviable when crops classed as dry are irrigated by
percolation, unless owing to drought or other special circumstances it is manifest that
without such irrigation the land must have remained waste or the crop must have
perished. In case of doubt whether the crop could have been successfully raised without
such irrigation, no levy shall be made.

2. No irrigation cess shall be leviable on dry lands when used as seedbeds, but
this exemption shall not apply when the water is irregularly taken.

THE SECOND SCHEDULE

(See Section 5)

RATE OF PENALTY

No. of occasions of irregular Rate of penalty

irrigation Wet Lands other than wet lands
(1) (2) (3)

On the first occasion Nil Not exceeding the amount

of irrigation cess under
Part II of the First Sechedule.
On the second occasion Not exceeding three times the Not exceeding four times the
irrigation cess under Part II of the irrigation cess under Part II of the
First Schedule. First Schedule.
On the third occasion Not exceeding eight times the Not exceeding nine times the
irrigation cess under Part II of the irrigation cess under Part II of the
First Schedule. First Schdule.
On the fourth or any subsequent Not exceeding eighteen times the Not exceeding nineteen times the
occasion irrigation cess under Part II of the irrigation cess under Part II of the
First Schdule. First Schdule.
 576

CONDITIONS

1. Where a crop is irrigated with the water taken in the manner referred to in
Section 5, the irrigation of such crop shall not be deemed to constitute more than one
occasion.

2. The penalty leviable on the second or any subsequent occasion as indicated

above shall be levied only when the land for which water is irregularly taken or used is
the same survey field or registered sub-division on both or all the occasions, as the case
may be.
_____
 577

THE YANAM LAND REFORMS (CEILING ON AGRICULTURAL

HOLDINGS) REGULATION, 1977.

[No. 1 of 1977]

ARRANGEMENT OF SECTIONS
SECTION

1. Short title, extent and commencement.

2. Definitions.
3. Ceiling area.
4. Standard holding for different classes of lands and computation
5. Constitution of a Tribunal.
6. Special provision in respect of certain transfers, etc already made.
7. Declaration of holding.
8. Determination of ceiling.
9. Surrender of land in certain cases.
10. Vesting of land surrendered.
11. Reversion and vesting of land surrendered.
12. Disposal of land vested in Government.
13. Amount payable for lands vested in the Government.
14. Claims for the amount payable.
15. Prohibition of alienation of holding.
16. Declaration of future acquisition.
17. Declaration to be furnished before registering officer.
18. Constitution of Appellate Tribunal.
19. Appeal.
20. Revision.
21. Power of authorities under this Regulation.
22. Exemptions.
23. Penalty.
24. Protection of action taken under this Regulation.
25. Bar of jurisdiction.
26. Power to make rules.
27. Regulation to override other laws.
28. Power to remove difficulties.

SCHEDULE

_____
 578

THE YANAM LAND REFORMS (CEILING ON AGRICULTURAL

HOLDINGS) REGULATION, 1977.
[No. 1 of 1977]

Promulgated by the President in the Twenty-seventh Year of the Republic of

India.

A Regulation to provide for the fixation of ceiling on agricultural holdings in the region
known as Yanam in the Union territory of Puducherry and taking over of surplus lands and to
provide for matters connected therewith.

In exercise of the powers conferred by the second proviso to clause (1) of article
240 of the Constitution, the President is pleased to promulgate the following Regulation
made by him:-
Short title, extent and commencement.
1. (1) This Regulation may be called the Yanam Land Reforms (Ceiling on
Agricultural Holdings) Regulation, 1977.
(2) It extends to the whole of the Yanam region in the Union territory of
Puducherry.
(3) It shall come into force on such date as the Government may, by
notification in the Official Gazette, appoint.

Definitions.

2. In this Regulation unless the context otherwise requires,-

(a) “agricultural year” means the year commencing on the 1st day of April in
any year and ending with the 31st day of March of the year next succeeding
Provided that the Collector may, with respect to any crop area or category of
land, by notification, specify the year between such other dates as he may deem fit, as
an agricultural year;
(b) “Appellate Tribunal” means the Appellate Tribunal constituted under
section 18 and where no such Appellate Tribunal is in existence, the Col1etor;
(c) “bank” means a banking company as defined in section 5 of the Banking
Regulation Act, 1949 (10 of 1949). and includes the State Bank of India, constituted
under the State Bank of India Act, 1955 (23 of 1955) a subsidiary bank as defined in the
State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), and a corresponding new
bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970), and such other financial institution owned, controlled or managed
by a State Government or the Central Government as may be notified in this behalf by
the Government;
(d) “ceiling area” means the extent of land specified in section 3 to be the
ceiling area;
 579

(e) “Collector” means the chief officer in charge of the revenue administration
of the Union territory of Puducherry;
(f) “Deputy Collector (Revenue)” means the Deputy Collector (Revenue),
Yanam;
(g) “double crop wet land” means any wet land on which two crops per fasli
year have, or a dufassal crop has, been raised with the use of water from a Government
source of irrigation in any four fasli years within a continuous period of six fasli years
immediately before the specified date;
(h) “dry land” means land registered as Terres a Pasturage in the revenue
accounts of the Government other than lanka or padugai land or land used as coconut
or grape garden immediately before the specified date
(i) “family unit” means-
(i) in the case of an individual who has a spouse or spouses, such
individual, the spouse or spouses and their minor sons and unmarried minor
daughters, if any;
(ii) in the case of an individual who has no spouse living, such individual
and his or her minor sons and unmarried minor daughters, if any;
(iii) in the case of an individual who is a divorced husband and who has
not remarried, such individual and his minor sons and unmarried minor
daughters, if any, whether in his custody or not; and
(iv) where an individual and his or her spouse are both (dead, their minor
sons and unmarried minor daughters, if any.

Explanation.- Where a minor son is married, his wife and their offspring, if any,
shall also be deemed to be members of the family unit of which the minor son is a
member;
(j) “fasli year” means the year commencing on the 1st day of July in any year
and ending with the 30th day of June of the year next succeeding;
(k) “Government” means the Administrator of the Union territory of
Puducherry appointed under article 239 of the Constitution;
(1) “Government source of irrigation” means a source of irrigation registered
in the land revenue accounts of the Government as such, including a well constructed
or maintained by the Government or any local authority;
(m) “holding” means the entire land held by a person,-
(i) as an owner;
(ii) as a limited owner;
(iii) as an usufructuary mortgagee;
(iv) as a tenant;
(v) who is in possession by virtue of a mortgage by conditional sale or
through part performance of a contract for the sale of land or otherwise;

or partly in one of the said capacities and partly in any other of the said capacity or
capacities ; and the expression “to hold land” shall be construed accordingly.
 580

Explanation- Where the same land is held by one person in one capacity and by
another person in any other capacity such land shall be included in the holding of both
such persons;
(n) “land” means land which is used or is capable of being used for purposes
of agriculture or for purposes ancillary thereto, including horticulture, forest land,
pasture land, waste land and tope ; and includes land deemed to be agricultural land
under this Regulation;

(o) “law” includes any enactment, Ordinance, regulation, order, bye law,
rule, scheme, notification or other instrument having the force of law;
(p) “notification” means a notification published in the Official Gazette, and
the expression “notify’ shall be construed accordingly;
(q) “notified date” means the date notified under sub-section (3) of section 1;
(r) “owner” includes a person by whom or in whose favour a trust is created
and a person entitled to a vested remainder but does not include a limited owner;
(s) “person” includes an individual, a family unit, a trustee, a company, a
firm, a society or an association of individuals, whether incorporated or not;
(t) “prescribed” means prescribed by rules made by the Government under
this Regulation;
(u) “specified date” means,-

(i) in the case of a declaration required to be filed under section 7, the

notified date ; and
(ii) in the case of a declaration required to be filed under section 16, the
date of acquisition usufructuary mortgage, lease, marriage, adoption or
alteration in the classification of the land referred to therein, as the case may be;
(v) ‘‘standard holding’’ means the extent of land specified in section 4 to be
the standard holding;
(w) “tenant” means any person who has paid or has agreed to pay rent or
other consideration for his being allowed by another to enjoy the land of the latter
under an agreement, express or implied, and includes his heirs and legal
representatives ; -
(x) “Tribunal” means a Tribunal constituted under section 5;
(y) “wet land” means any land on which paddy or dufassal crops have been
raised with the use of water from a Government source of irrigation in any four fasli
years within a continuous period of six fasli years immediately before the specified date
and includes any land irrigated by a tube well constructed by the Government or any
person.
Ceiling area.
3. (1) The ceiling area in the case of a family unit consisting of not more than five
members shall be an extent of land equal to one standard holding.
(2) The ceiling area in the case of a family unit consisting of more than five
members shall be an extent of land equal to one standard holding plus an additional
 581

extent of one-fifth of one standard holding for every such member in excess of five, so
however, that the ceiling area shall not exceed two standard holdings.
(3) The ceiling area in the case of every individual who is not a member of a
family unit, and in the case of any other person shall be an extent of land equal to one
standard holding.
Explanation.- In the case of a family unit, the ceiling area shall be applied to the
aggregate of the lands held by all the members of the family unit.
Standard holding for different classes of lands and computation
4. (1) For the purposes of this Regulation, the extent of land which shall
constitute a standard holding for the class of lands specified in column (1) of the Table
below shall be that specified against it in column (2) thereof;
TABLE
Class of Extent of
land standard
holding
(1) (2)

WET LAND
1st class (Land assessed to land revenue at the 7.20 hectares.
2nd class Rate exceeding 10 per hectare)
3rd class (Land assessed to land revenue at the 8.40 hectares.
rate exceeding 7 but not exceeding
10 per hectare)
4th class (Land assessed to land revenue at the 9.60 hectares.
rate exceeding 4 but not exceeding
7 per hectare)
5th class (Land assessed to land revenue at the 10.08 hectares.
rate not exceeding 4 per hectare)
DRY LAND
1st class (Land assessed to land revenue at the 21.00 hectares.
2nd class rate not exceeding 3 per hectare)

Explanation.- For the purpose of this section, “class” means the class of the land as
determined by the Deliberation dated the December, 1925 and enforced by the Arrete,
dated 16th April 1926.

(2) In computing the holding of a person or family unit, consisting of lands of

different classes, the relative proportion of the extent of land of each such class to the
extent of a standard holding of the appropriate class shall be taken into account in the
manner prescribed and the aggregate of all such proportions shall be deemed to be the
holding of the person or the family unit, in relation to the ceiling area.
 582

(3) In computing the holding of an individual who is not a member of a family

unit, but is a member of a joint family, the share of such an individual in the lands held
by the joint family shall be taken into account and aggregated with the lands, if any,
held by him separately and for this purpose, such share shall be deemed to be the extent
of land which would he allotted to such individual had there been partition of the lands
held by the joint family.

(4) in computing the holding of the member of a family unit who is also a
member of a joint family, the share of such member in the lands held by the joint family
shall be taken into account and aggregated with the lands, if any, held by him
separately and for this purpose, such share shall be deemed to be the extent of land
which would be allotted to such member had there been a partition of the lands held by
the joint family.
(5) Where an individual or a member of the family unit is a member of a
co-operative society, or firm, the share of such individual or member of a family unit in
the land held by such co-operative society or firm shall also be included in tile holding
of the individual or member of the family unit, as the case may be, and for this purpose
the share of the land so held shall be deemed to be the extent of the land which would
have been allotted to him on a winding up of the co-operative society or dissolution of
the firm.
(6) Lands owned or held under a private trust shall.-

(a) in a case where the trust is revocable by the author of the trust, be
deemed to be held by such author or his successor- in-interest ; and
(b) in other cases, be deemed to be held by the beneficiaries of the trust in
proportion to their respective interests in such trust, or the income derived
therefrom.

Explanation- Where a trust is partly private and partly public, this sub-section
shall apply to lands covered by that part of the assets of the trust which is relatable to
the private trust.
Constitution of a Tribunal.
5. (1) The Government may, by notification, constitute a Tribunal for the
purposes of this Regulation.

(2) The Tribunal constituted under sub-section (1) shall consist of one person
who holds or has held the post of a Deputy Collector or that of a District Munsif or is
qualified to hold the post of a District Munsif or holds or has held a civil post under the
Government, not below the rank of a Deputy Collector.
 583

Special provision in respect of certain transfers, etc.

already made.
6. (1) Where on or after the 24th January, 1971 but before the notified date, any
person has transferred whether by way of sale (other than a bona fide sale under a
registered deed for valuable consideration), gift, usufructuary mortgage, exchange,
settlement, surrender or in any other manner whatsoever, any land held by him or
created a trust of any land held by him, then, the burden of proving that such transfer
or creation of trust has not been effected in anticipation of, and with a view to avoiding
or defeating the objects of, this Regulation shall be on such person, and where he has
not so proved, such transfer or creation of trust, shall be disregarded for the purpose of
the computation of the ceiling area of such person.

(2) Where at any time within a period of five years before the notified date,
any person has converted any agricultural land held by him into a non-agricultural
land, then, the land so converted shall be deemed to be agricultural land on the notified
date for the purpose of this Regulation.

(3) Where on or after the 24th January, 1971, but before the notified date.-

(a) any declaration of dissolution of marriage has been made by a Court

on an application made on or after the 24th January, 1971 ; or
(b) any other dissolution of marriage in accordance with any law or
custom has taken place,

then, the land held by each spouse immediately before the date of such dissolution
shall, for the purposes of this Regulation, be deemed to be land held on the notified date
by the family unit of which they were members immediately before such dissolution.

(4) Where on or after the 24th January, 1971, but before the notified date, any
person has been given in adoption, then, the land held by such person immediately
before the date of such adoption shall, for the purposes of this Regulation, be deemed to
be held on the notified date by the family unit of which he was a member immediately
before such adoption.

(5) In every case referred to in sub-section (3) or sub-section (4), the

computation of the ceiling area shall first be made in respect of the family unit referred
to in the said sub-section, and after the surrender of the land held in excess of the ceiling
area by such family unit, the remaining land held by such divorced spouse or adopted
person, as the case may be, shall be included in the holding of such divorced spouse or
adopted person, whether as an individual or as a member of a family unit of which
such spouse or person has become a member.
 584

(6) If any question arises,-

(a) whether any transfer or creation of a trust effected on or after the 24th
January, 1971 had been effected in anticipation of, and with a view to avoiding or
defeating the objects of, this Regulation ; or
(b) whether any conversion of agricultural land into non-agricultural land
had taken place within a period of five years before the notified date ; or
(c) whether any dissolution of a marriage had taken place on or after the
24th January, 1971 but before the notified date either on an application made, on
or after the 24th January, 1971, or in accordance with any law or custom; or
(d) whether any person had been given in adoption on or after the 24th
January, 1974, but before the notified date;

such question shall be determined by the Tribunal, after giving an opportunity of being
heard to the affected parties, and its decision thereon shall, subject to an appeal and a
revision under this Regulation, be final.

(7) If the Tribunal decides that any transfer or creation of trust had been
effected in anticipation of, and with a view to avoiding or defeating the objects of this
Regulation and if as a result of such transfer or creation of trust, the holding of the
person or the family unit, that remains on the notified date, does not exceed the extent
of land that he or the family unit is liable to surrender, then, the Tribunal shall treat the
entire holding thus left over as the extent of land to be surrendered under the
provisions of this Regulation by the person or the family unit, as the case may be.

Declaration of holding.
7. (1) Every person whose holding on the notified date together with any land
transferred by him on or after the 24th January 1971, whether by way of sale (other than
a bona fide sale under a registered deed for valuable consideration gift, usufructuary
mortgage, exchange, settlement, surrender or in any other manner whatsoever and any
land in respect of which a trust has been created by him on or after the 24th January.
1971 exceeds the specified limit, shall, within thirty days from the notified date or
within such extended period as the Government may notify in this behalf, furnish a
declaration in respect of his holding together with such land, to the Tribunal containing
such particulars and in such form as may be prescribed.

Explanation I.- Where the land is held or is deemed to be held by a minor or

lunatic or an idiot or other person subject to like disability, not being a member of the
family unit, the declaration shall be furnished by the guardians manager or other
person in charge of the property of such person, and where the land is held or is
deemed to be held by a company firm, association ,or other corporate body, the
declaration shall be furnished by any person competent to act for such company, firm
association or corporate body in this behalf.
 585

Explanation II.- Where the land is held or is deemed to be held by a family unit,
the declaration shall be furnished by a person in management of the property of such
family unit and the declaration so furnished shall be binding on all the members of the
family unit:

Provided that the Tribunal shall, in the event of a dispute as to the declaration
furnished by the person in management, give to the other members of the family unit
an opportunity of making their representations or of adducing evidence, if any, in
respect of such declaration and shall consider such representations and evidence before
determining the ceiling area under this Regulation.

Explanation III.- In this sub-section, “Specified limit” means,-

(a) in the case of wet land—7.20 hectares (18 acres);

(b) in the case of dry land—18.00 hectares (45 acres);

and for the, purpose of computing the specified limit in a case where the holding of any
person includes both wet land and dry land, one hectare of wet land shall be deemed to
be equal to two and one-half hectares of dry land.

(2) Without prejudice to the provisions of sub-section (1), the Tribunal shall
have power to issue notice requiring any person holding land or residing within its
jurisdiction who, it has reason to believe, holds or is deemed to hold land in excess of
the ceiling area to furnish a declaration of his holding, or that of his family unit, under
sub-section (1), within such period as may be specified in the notice not being less than
fifteen days from the dale of its communication, and such person shall furnish the
declaration accordingly.

(3) If any person who is liable to furnish a declaration under sub-section (1) or
sub-section (2) fails to furnish the declaration within the specified time, the Tribunal
may obtain the necessary information in such manner as may be prescribed.

Determination of ceiling.

8. The Tribunal shall, on receipt of the declaration furnished or information

obtained under section 7, publish the same, and make an inquiry, in such manner as
may be prescribed and pass orders determining whether the person holds or is deemed
to hold on the notified date an extent of land in excess of the ceiling area and if so, the
extent of land so held in excess as on that date.

Explanation.- Save as otherwise provided in this Regulation, in the case of a

family unit, the number of members of the family unit shall be reckoned with reference
to the notified date.
 586

Surrender of land in certain cases.

9. (1) If the extent of the holding of a person is in excess of the ceiling area, the
person shall be liable to surrender the land held in excess.
(2) The Tribunal shall serve on every person, who is liable to surrender the
land held in excess of the ceiling area under sub-section (1), a notice specifying therein
the extent of land which such person has to surrender and requiring him to file a
statement within such period not being less than fifteen days, as it may fix, indicating
therein, full particulars of the lands which such person proposes to surrender.

(3) If the person on whom a notice is served under sub-section (2), files the
statement referred to in that sub-section within the period fixed therefor, and the
Tribunal is satisfied, after making such inquiry as it deems fit, that the proposed
surrender of the land is in accordance with the provisions of this Regulation, it shall
pass an order approving the surrender and the said land shall thereupon be deemed to
have been surrendered by such person.

(4) If the person on whom a notice is served under subsection (2) does not file
the statement referred to in that sub-section within the period fixed therefor or files
such statement within the period fixed but does not specify therein the entire extent of
land which such person has to surrender, the Tribunal may, after giving an opportunity
to the person concerned of being heard, itself select, in the former case, the entire extent,
and in the latter case, the balance of the extent which such person has to surrender, and
pass an order to that effect, and thereupon the said land or balance of land, as the case
may be, shall be deemed to have been surrendered by such person.

(5) (a) Notwithstanding anything in this section, it shall be open to the

Tribunal to refuse to accept the surrender of any land-

(i) which has been converted into non-agricultural land and, has been
rendered incapable of being used for purposes of agriculture;

(ii) the surrender of which is not acceptable on account of a dispute as to

the title to the land or an encumbrance on the land or on account of the land
being in the possession of any person mentioned in sub-clause (ii) or sub-clause
(v) of clause (m) of section 2 or on account of the land proposed to be
surrendered becoming inaccessible by reason of its severance from the remaining
part of the holding;

and the Tribunal shall, in every such case, serve a notice on the person concerned
requiring him to surrender any other land in lieu thereof ; and thereupon the provisions
of sub-sections (3) and (4) shall, mutatis mutandis, apply to such surrender:
 587

Provided that where the land proposed to be surrendered under this section is
burdened with a mortgage, the Tribunal may, on an application made by the mortgagor
with the consent of the mortgagee, by order, transfer such mortgage from the land so
proposed to be surrendered to the residuary holding of the mortgagor or to any part
thereof.

(b) Where the land so surrendered under clause (a) is also not acceptable to
the Tribunal, the Tribunal shall, after giving an opportunity to the person concerned of
being heard, select any other land in lieu thereof, and thereupon, the said land shall be
deemed to have been surrendered by such person.

(6) Before passing an order under sub-section (3) or sub-section (4) or

sub-section (5), the Tribunal shall publish the particulars of the land proposed to be
surrendered or selected, in such manner as may be prescribed and consider the
objections, if any, received in pursuance of such publication.

Explanation I.- In the case of a surrender of land or a family unit,-

(a) where the extent to be surrendered by each member is agreed upon by or

on behalf of all the members of the family unit, the extent surrendered by each such
member shall be in accordance with such agreement, so however, that the extent
surrendered by any female member of the family unit shall not exceed the extent which
she would be liable to surrender in proportion to the total land held by her to the lands
held by all the members of the family unit;
(b) where there is no such agreement, the extent surrendered shall be in
proportion to the lands held by each member of the family unit;
(c) where any land is held in the name of any female member of the family
unit, it shall be presumed, unless the contrary is proved, that such female member is the
owner of such land.

Explanation II.- Where any person surrenders any land being the whole or part
of his share of the land held by a co-operative society or firm, the share of such person
in such co-operative society, or firm, as the case may be, shall, to the extent required for
such surrender, be deemed to have been correspondingly reduced.

Explanation III.- Where any person required to surrender any land under this
Regulation is a member of a co-operative society or firm, he may be required to
surrender the land, if any, held by him separately and may then be required to
surrender from his share of the land held by the co-operative society, or firm only to
make up the deficiency.
 588

Explanation IV.- Where it is proposed to accept the surrender by any person of

his share of the lands held by a joint family, co-operative society or firm of which he is a
member, the lands so surrendered shall be selected in accordance with any agreement
that may be arrived at between such person and the other members of such joint family,
co-operative society or firm, and where there is no such agreement, the share of such
person in the lands so held shall, as far as practicable, be determined pro rata with
reference to each class of land held by such joint, family, co-operative society or firm.

Vesting of land surrendered.

10. Where any land surrendered or is deemed to have been surrendered under
this Regulation by an owner, the Tribunal may, subject to such rules as may be
prescribed, by order take possession or authorise any officer to take possession of such
land which shall thereupon vest in the Government free from all encumbrances from
the date of such order:

Provided that any claim or liability enforceable against that land immediately
before the date of vesting in the Government may be enforced only-

(i) against the amount payable under this Regulation in respect of such
land ; and
(ii) against any other property of the owner;

to the same extent to which such claim or liability was enforceable against that land or
other property, as the case may be, immediately before the date of vesting.

Explanation.- Nothing in this section shall affect the provisions of any law,
custom, usage or agreement relating to right of easement available for any land vesting
in the Government under this section over any other land.

Reversion and vesting of land surrendered.

11. (1) Where any land is surrendered or is deemed to have been surrendered
under this Regulation by any usufructuary mortgagee or tenant, the possession of such
land shall, subject to such rules as may be prescribed, revert to the owner.

(2) The owner to whom the possession of the land reverts under sub-section
(1) from an usufructuary mortgagee shall be liable to pay the mortgage money due to
the usufructuary mortgagee in respect of that land with interest at the rate of six per
cent per annum from the date of such reversion, and the said land shall continue to be
the security for such payment.
 589

(3) The owner to whom the possession of the land reverts under sub-section
(1) from a tenant shall be entitled to receive from the tenant rent due for the period
ending with the last crop harvested by such tenant.

(4) Where any land is surrendered or is deemed to have been surrendered

under this Regulation by any limited owner or by any person in possession by virtue of
a mortgage by conditional sale or through a part performance of contract for sale or
otherwise, the possession of such land shall, subject to such rules as may be prescribed,
revert to the owner.

(5) The owner to whom the possession of the land reverts under sub-section
(4) shall be liable to discharge the claim enforceable against the land by the limited
owner or person in possession; and the land surrendered shall, if held as a security,
continue to be the security.

(6) Notwithstanding anything contained in this section, where any land

surrendered by an usufructuary mortgagee or a tenant or a limited owner or a person in
possession referred to in sub-section (4), is also a land surrendered by the owner, the
provisions of section 10 shall apply.

Disposal of land vested in Government.

12. (1) The lands vested in the Government under this Regulation shall be
allotted for use as house-sites for agricultural labourers, village artisans or other poor
persons owning no houses or house-sites, or transferred to the weaker sections of the
people dependent on agriculture for purpose of agriculture or for purposes ancillary
thereto, in such manner as may be prescribed:

Provided that, as far as may be practicable, not less than one-half of the total
extent of land so allotted or transferred shall be allotted or transferred to the members
of the Scheduled Castes and such of the categories of the weaker sections as may be
prescribed by the Government.
(2) Every person, to whom the land has been allotted for use as house-site or
transferred for the purpose of agriculture or for purposes ancillary thereto, shall pay to
the Government the value of the land within a period of fifteen years from the date of
allotment or transfer or within a shorter period at his option, and in such instalments as
may be prescribed, and on payment of the entire amount such person shall be granted a
patta in respect of that land:

Provided that such price shall, in no case, be less than the amount paid by the
Government for the vesting of such land under this Regulation.
 590

Explanation.- Where any land transferred under sub-section (1) contains any
fruit-bearing trees or permanent structures, the transferee shall also be liable to pay the
value of such trees or structures calculated in such manner as may be prescribed.
(3) Where any person fails to pay the sum referred to in sub-section (2) or any
installment thereof, the Deputy Collector (Revenue) may, subject to such rules as may
be prescribed, resume the land after giving an opportunity to the person concerned of
making a representation in this behalf and the amount already paid by such person to
the Government shall be liable to be forfeited to the Government.

(4) Any transfer of the land under this section shall be subject to-
(i) the condition that the land shall not be alienated by the transferee by
way of sale, gift, mortgage, lease or in any manner whatsoever otherwise than by
way of mortgage in favour of the Government, a bank or a co-operative society,
including a land mortgage bank ; and
(ii) such other conditions as may be prescribed.

(5) Any alienation effected or other act done, in respect of any land in
violation of the conditions specified in sub-section (4) shall be null and void; and the
Deputy Collector (Revenue) shall resume the land after giving an opportunity to the
persons affected of making a representation in this behalf.

(6) Notwithstanding anything in this section, the Government may-

(i) lease out any land vesting in them under this Regulation for such
purposes and on such terms and conditions as may be specified by them; or
(ii) reserve such land for any common use or benefit of the community.

Amount payable for lands vested in the Government.

13. The amount payable for any land vested in the Government under this
Regulation shall be a sum calculated at the rates specified in the Schedule and it shall be
paid in such manner as may be prescribed.

Claims for the amount payable.

14. (1) The Tribunal shall, after giving the persons known or believed to be
interested in the land vested in the Government an opportunity of being heard,
determine the amount payable under section 13 and publish a notification containing
particulars of the land so vested and the amount payable therefor.
(2) Any person having an interest in the said land may file a claim for the
amount due to him from out of the amount payable, within thirty days from the date of
publication of the notification and the Tribunal shall, after making an inquiry into the
validity of the claim, determine the persons who, in its opinion, are entitled to payment
from out of the said amount and the amount to which each of them is entitled and
subject to such rules as may be prescribed, make payments in accordance with such
determination.
 591

Prohibition of alienation of holding.

15. (1) No person whose holding, and no member of a family unit, the holding of
all the members of which in the aggregate, is in excess of the ceiling area as on the 24th
January, 1971 or at any time thereafter, shall, on or after the notified date, alienate his
holding or any part thereof by way of sale, lease, gift, exchange, settlement, surrender,
usufructuary mortgage or otherwise, or effect a partition thereof, or create a trust or
convert an agricultural land into non-agricultural land, until he or the family unit, as
the case may be, has furnished a declaration under section 7 and the extent of land, if
any, to be surrendered in respect of his holding or that of his family unit has been
determined by the Tribunal and an order has been passed by the Tribunal under this
Regulation taking possession of the land in excess of the ceiling area and a notification
is published under section 14 ; and any alienation made or partition effected or trust
created in contravention of this section shall be null and void and any conversion so
made shall he disregarded.

(2) For the purposes of determining whether any transaction of the nature
referred to in sub-section (1) took place on or after the notified date, the date on which
the document relating to such transaction was registered shall, notwithstanding
anything in section 47 of the Registration Act, 1908 (16 of 1908), be deemed to be the
date on which the transaction took place, whether such document was registered within
or outside the Union territory of Puducherry.

(3) The provisions of sub-section (1) shall apply to any transaction of the
nature referred to therein in execution of a decree or order of a civil court or of any
award or order of any other authority.

Declaration of future acquisition.

16. Where on or after the notified date there takes place-

(a) any acquisition in any manner whatsoever, usufructuary mortgage, or
lease of any land; or
(b) any marriage or adoption; or
(c) any alteration in the classification of the land;
and after such acquisition, usufructuary mortgage, lease, marriage, adoption or
alteration, the total extent of land held by any person or by all the members of any
family unit in the aggregate exceeds the ceiling area such person or family unit shall,
within a period of sixty days from the date of such acquisition, usufructuary mortgage,
lease, marriage, adoption or alteration, furnish a declaration of the holding of such
person or family unit to the Tribunal ; and all the relevant provisions of this Regulation
shall apply as if it was a declaration furnished under section 7.
 592

Explanation I.- For the purpose of this section, the number of members of a
family unit shall be reckoned with reference to the date of such acquisition,
usufructuary mortgage, lease, marriage, adoption or alteration, as the case may be.
Explanation II.- For the purpose of the application of the provisions of sections 8
and 15, the expression “notified date” shall be construed as the date of acquisition,
usufructuary mortgage, lease, marriage, adoption or alteration, as the case may be.
Explanation III.- For the removal of doubts, it is hereby clarified that no
declaration under this section need be furnished where the total extent of land held by
all the members of a family unit in the aggregate exceeds the ceiling area solely on
account of any reduction in the number of members of the family unit.
Explanation IV.- Where a land surrendered by a family unit under this
Regulation is land held by a joint family, it shall be open to the members of the family
unit and other members of the joint family to partition the land remaining with such
joint family after such surrender and if such family unit comes to hold land in excess of
the ceiling area solely on account of such partition, such family unit shall not be
required to furnish a fresh declaration under this section and the relevant provisions of
this Regulation applicable to a family unit holding land in excess of the ceiling area
shall not apply to such family unit.

Declaration to be furnished before registering officer.

17. (1) Notwithstanding anything in the Registration Act, 1908 (16 of 1908), every
person presenting before a registering officer appointed under the said Act, for
registration on or after the notified date, any document relating to alienation of any
land or creation of a trust in respect of any land shall at the time of such presentation,
furnish a declaration in duplicate by the transferor making the alienation, or, creating
the trust, to the effect that the holding of the transferor does not exceed the ceiling area,
and in a case where such transferor is a member of a family unit, that the holdings of all
the members of such family unit in the aggregate do not exceed the ceiling area.
(2) The declaration mentioned in sub-section (1) shall be in such form and
contain such particulars as may be prescribed.

(3) On or after the notified date, no registering officer shall accept for
registration any document relating to the alienation, or the creation of any trust, of any
land, if the document is not accompanied by the declaration mentioned in sub-section
(1).

(4) The registering officer shall, as soon as may be after the date of registration
of the document, forward one copy of the declaration referred to in this section to the
Deputy Collector (Revenue) and on receipt of such copy the Deputy Collector
(Revenue) may obtain such information as may be necessary for verifying as to the
correctness of the statements contained in the declaration.
 593

(5) Every village Karnam and every officer of the Revenue Registration or
Survey and Settlement Department of the Government, shall report to the Deputy
Collector (Revenue) any information which they may receive of transactions in respect
of any land made in contravention of any of the provisions of this Regulation and on
receipt of such information the Deputy Collector (Revenue) may verify the correctness
of the same.

(6) Where it appears to the Deputy Collector (Revenue) as a result of

verification under sub-section (4) or sub-section (5) or in any other manner that a
transaction has taken place in contravention of the provisions of this Regulation he
shall, after giving an opportunity of making representation to the parties likely to be
affected and holding such inquiry as he may consider necessary, by order, determine
whether or not the transaction is in contravention of the provisions of this Regulation;
and where any transaction is so determined to be in contravention of the said
provisions, it shall be null and void.

Constitution of Appellate Tribunal.

18. (1) The Government may, by notification, constitute an Appellate Tribunal for
the purpose of hearing appeals under this Regulation.

(2) The Appellate Tribunal shall consist of not more than three members of
whom one shall be a person who holds or has held or is qualified to hold the post of a
District Judge and such person shall be the Chairman of the Tribunal.

(3) The Appellate Tribunal shall meet at such times and places as it thinks fit
and shall regulate its own procedure.
Appeal.

19. (1) An appeal shall lie against an order passed by the Tribunal or the Deputy
Collector (Revenue) to the Appellate Tribunal within thirty days from the date of
communication of the order, and the Appellate Tribunal shall pass such orders on the
appeal as it deems fit and such order shall, subject to any revision under section 20, be
final:

Provided that the Appellate Tribunal may entertain the appeal after the expiry of
the said period of thirty days if it is satisfied that the appellant was prevented by
sufficient cause from filing the appeal in time.
(2) Where the Government are aggrieved by an order passed by the Tribunal
or Deputy Collector (Revenue), they may file an appeal to the Appellate Tribunal
against that order.
 594

Revision.

20. An application for revision from any party aggrieved, including the
Government, shall lie to the High Court, within the prescribed period, from any order
passed on appeal by the Appellate Tribunal on any of the following grounds, namely :-

(a) that it exercised a jurisdiction not vested in it by law, or

(b) that it failed to exercise a jurisdiction so vested, or
(c) that it acted in the exercise of its jurisdiction illegally or with material
irregularity.

Power of authorities under this Regulation.

21. (1) The Appellate Tribunal, the Tribunal, the Deputy Collector (Revenue) and
any officer authorised by the Tribunal or Deputy Collector (Revenue) to exercise any
powers under this Regulation shall have the same powers as are vested in a civil court
under the Code of Civil Procedure, 1908 (5 of 1908), for summoning and enforcing the
attendance of any person and examining him on oath and for requiring production of
any document.

(2) The Appellate Tribunal, the Tribunal, the Deputy Collector (Revenue) or
any officer authorised by the Tribunal or Deputy Collector (Revenue) in this behalf
may, at any time, enter upon any land but not a dwelling house, with such officers or
other persons as it or he considers necessary and make a survey and take measurements
thereof or do any other act which it or he considers to be necessary for carrying out any
of the provisions of this Regulation.

(3) The Tribunal or any officer authorised by it to take possession of any land
vesting in the Government under this regulation may, while taking such possession
remove any obstruction that may be caused or offered thereto and may for that purpose
use such force as may be necessary.
Exemptions.
22, Nothing in this Regulation shall apply to the following lands, namely:-

(a) lands held by the Central Government or any State Government or any
local authority;
(b) lands held by religious, charitable or educational institutions
(including wakfs) of a public nature existing on the date of commencement of
this Regulation;
(c) lands held by an undertaking owned, controlled or managed by-

(i) a Government company as defined in section 617 of the Companies

Act, 1956 (1 of 1956);
 595

(ii) a corporation established by or under a Central, Provincial or State

Act, which is controlled or managed by a State Government or the
Central Government;

(d) lands held by-

(i) such co-operative farming societies of weaker sections of the people
as may be approved by the Government in this behalf, which approval the
Government may, for good and sufficient reason, withdraw at any time;
(ii) other co-operative societies including land mortgage banks;
(e) lands held by a bank;

(f) lands in any area notified by the Government in this behalf as required
for acquisition in connection with any major irrigation, power, industrial or other
project under construction as on the date of the commencement of this
Regulation;

Provided that where any of the lands specified in clause (a), (b), (c), (d) or (e) are
held by any person other than the authority, institution, body corporate or society
specified in such clause, whether as a tenant or usufructuary mortgagee or otherwise,
the provisions of this Regulation shall apply to such person in respect of such land:

Provided further that the exemptions under sub-clause (ii) of clause (d) and
clause (e) shall be available only in respect of the lands acquired by such co-operative
societies or banks in pursuance of the recovery of their dues:

Provided also that the exemption under sub-clause (i) of clause (c) shall be
available only in respect of such part of the land as may be relatable to the share held by
a State or the Central Government in such Government company, and for this purpose.
the share of the land so relatable shall be deemed to be the extent of the land which
would have been allotted to the said Government on a winding up of the company.

Penalty.

23. (1) If any person, who is liable to furnish a declaration under this Regulation
wilfully and without reasonable cause or excuse, fails to furnish the declaration within
the period prescribed or specified therefor by or under this Regulation or furnishes any
declaration which he knows or has reason to believe to be false, incorrect or incomplete,
he shall be punished with imprisonment for a term which may extend to two years or
with fine which may extend to two thousand rupees or with both.
 596

(2) If any person wilfully and without reasonable cause or excuse contravenes
any other provisions of this Regulation or of any rules made or orders issued
thereunder, he shall be punished with imprisonment for a term which may extend to
two years or with fine which may extend to two thousand rupees or with both.

(3) If any village Karnam, or any officer of the Revenue, Registration or

Survey and Settlement Department of the Government wilfully, and without reasonable
cause or excuse fails to report to the Deputy Collector (Revenue) any information which
he may receive of any transaction in respect of any land made in contravention of any of
the provisions of this regulation, he shall be punished with imprisonment for a term
which may extend to two years or with fine which may extend to two thousand rupees
or with both.
(4) No court shall take cognizance of an offence punishable under this
Regulation except with the previous sanction of the Collector, which sanction shall be
accorded subject to such rules as may be prescribed.

Protection of action taken under this Regulation.

24. (1) No suit, prosecution or other legal proceedings shall lie against any
person, officer or authority for anything which is in good faith done or intended to be
done in pursuance of this Regulation or any rules made thereunder.

(2) No suit or other legal proceedings shall lie against the Government for any
damage caused or likely to be caused or for any injury suffered or likely to be suffered,
by virtue of any provision of this Regulation, or for anything which is in good faith
done or intended to be done in pursuance of this Regulation or any rules made
thereunder.
Bar of jurisdiction.

25. Save as otherwise provided in this Regulation, no order passed or proceeding

taken by an officer or authority under this Regulation shall be called in question in any
court, in any suit or application and no injunction shall be granted by any court in
respect of any action taken or to be taken by such officer or authority in pursuance of
any power conferred by or under this Regulation.

Power to make rules.

26. (1) The Government may, by notification, make rules to carry out all or any of
the purposes of this Regulation.
(2) Without prejudice to the generality of the foregoing power, such rules
may provide for -
 597

(a) the form in which a declaration under sub-section (1) of section 7 may
be furnished and the particulars which such declaration shall contain;
(b) the manner in which information regarding lands in excess of the
specified limit may be obtained under sub-section (3) of section 7;
(c) the manner in which an inquiry may be made under section 8;
(d) the circumstances under which lands surrendered or deemed to have
been surrendered by usufructuary mortgagee or tenant shall revert to the owner
under sub-section (1) of section 11;
(e) the manner of allotment under sub-section (1) of section 12 of lands
vested in the Government;
(f) the instalments in which the value of the land may be paid to the
Government under sub-section (2) of section 12;
(g) the circumstances under which lands may be resumed under
sub-section (3) of section 12;
(h) the value of the court fee stamps to be affixed on an appeal under
section 19;
(i) any other matter which has to be or may be prescribed.

(3) Every rule made under this Regulation shall, as soon as may be after it is
made, be laid before the Legislative Assembly while it is in session for a total period of
fourteen days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session, in which it is so laid or the sessions
aforesaid, the Assembly makes any modification in the rule or decides 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.
Regulation to override other laws.
27. The provisions of this Regulation shall have effect notwithstanding anything
inconsistent, therewith in any other law for the time being in force or any custom, usage
or agreement or decree or order of a court, tribunal or authority.

Power to remove difficulties.

28. If any difficulty arises in giving effect to the provisions of this Regulation, the
Government may, by general or special order, published in the Official Gazette, make
such provisions not inconsistent with the provisions of this Regulation, as appear to
them to be necessary or expedient for the removal of the difficulty:
Provided that no such order shall be made after the expiration of two years from
the notified date.
 598

THE SCHEDULE
(See section 13)
1. The amount payable to any person under section 13 in respect of any land
vested in the Government under this Regulation shall be determined in the manner
hereinafter specified.
2. A sum equivalent to the net annual income from the land shall be determined
in the first instance.
3. The net annual income from the land shall be the amount of fair rent less the
land revenue.
Explanation.- In this Regulation “land revenue” means the land revenue payable
as per the Deliberation dated 5th December, 1925 enforced by the Arrete, dated 16th
April, 1926 and includes 50 per cent surcharge thereon and centimes additionals, and
charge for water, if any
Provided that in the case of any land in respect of which land revenue is payable,
the land revenue in respect of such land shall be the same as the land revenue payable
for similar land in the vicinity.

4. The fair rent shall be the aggregate of-

(a) (i) in the case of wet land, 40 per cent of the average gross produce or
its value in money;
(ii) in the case of wet land, the irrigation of which supplemented by
lifting water, 35 per cent of the average gross produce or its value in money;
(iii) in the case of land on which crops, which do give any yield within
a period of one year from the time of cultivation, are cultivated, 40 per cent of the
average gross produce or its value in money ;
(iv) in the case of any other class of land, 33-1/3 per cent of the average
gross produce or its value in money;

Provided that in the case of lands referred to in items (ii) and (iv) for the
cultivation of which water is lifted by pump-set installed at the cost of the land-owner,
the fair rent shall be increased to 40 per cent.

Explanation I,- In this paragraph, “average gross produce”,-

(i) in respect of a land cultivated with any crop which does not give any
yield within a period of one year from the time of cultivation, means the gross
produce for one year if the land were cultivated with paddy;
(ii) in respect of a land cultivated with any other crop, means the
produce which would be obtained for one year from a land of the same class as
the land in question similarly situated and possessing similar advantages if the
rainfall and the seasons were normal.
 599

Explanation II.- In the case of land on which different crops are cultivated at
different times on different portions of the land, the fair rent shall be calculated with
reference to-
(a) the actual crops ordinarily cultivated according to the ordinary rotation of
crops in the area in which such land is situated ; and
(b) the value of one-fifth of straw or stalk of all the crops cultivated on the
land in an agricultural year.

5. In the case of land cultivated by the owner, the fair rent shall be the fair rent as
calculated in the manner specified in paragraph 4 in respect of a land of the same class
as the land in question, similarly situated and possessing similar advantages.

6. The amount payable for the land vested in the Government under this
Regulation, which in no case shall exceed five thousand rupees per standard hectare,
shall be determined in accordance with the following scale, namely:-

(i) for the first sum of 5,000 or any portion thereof of the net annual
income from the land ten times such sum or portion;
(ii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, nine times such sum or portion;
(iii) fur the next sum of 5,000 or any portion thereof of the net annual
income from the land, eight times such sum or portion ;
(iv) for the next sum of 5.000 or an portion thereof of the net annual
income from the land, seven times such sum or portion;
(v) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, six times such sum or portion ;
(vi) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, five times such sum or portion;
(vii) for the next sum of 5.000 or any portion thereof of the net
annual income from the land, four times such sum or portion;
(viii) for the next sum of 5,000 or any portion thereof of the net annual
income from the land, three times such sum or portion;
(ix) for the balance of the net annual income from the land, two times
such balance.

Explanation.- In this paragraph “standard hectare” means,-

 600

(a) in the case of wet land—

(i) 1.20 hectares of wet land assessed to land revenue at a rate

exceeding 10 per hectare;
(ii) 1.40 hectares of wet land assessed to land revenue at a rate
exceeding 7 but not exceeding 10 per hectare;
(iii) 1.60 hectares of wet land assessed to land revenue at a rate
exceeding 4 but not exceeding 7 per hectare
(iv) 1.80 hectares of wet land assessed to land revenue at a rate not
exceeding 4 per hectare;

(b) in the case of dry land, 3.60 hectares of dry land assessed to land
revenue at a rate not exceeding 3 per hectare.

7. (a) The amount payable for any building, machinery, plant, apparatus, wells,
filter points or power lines vested under this Regulation shall be the written down
value determined in accordance with the provisions of the Income tax Act, 1961 (43 of
1961), of such building, machinery, plant, apparatus, wells, filter points or power lines,
on the date of the order made under section 10.

(b) The amount payable for any tree shall be the value of such tree on the date
of the order made under section 10.

8. The amount payable shall be the aggregate of the amount as calculated under
paragraphs 6 and 7 in respect of the land concerned.

________
 601

PART - III

EXTENSION OF THE TAMIL NADU DEBT RELIEF ACT, 1976 TO THE

UNION TERRITORY OF PUDUCHERRY.

ARRENGEMENT OF SECTION

SECTION

1. Short title, extent and commencement

2. Declaration
3. Definitions.
4. Relief from indebtedness
5. Creditors to file statement, etc
6. Debtors to apply in certain cases
7. Finality of orders passed under this Act
8. Appeal
9. Legal practitioner not to appear
10. Penalty
11. Offences by companies
12. Burden of proof
13. Certain debts and liabilities not to be affected
14. Power to make rules
15. Effects of other laws

______
 602

EXTENSION OF THE TAMIL NADU DEBT RELIEF ACT, 1976 TO THE

UNION TERRITORY OF PUDUCHERRY.

GOVERNMENT OF PUDUCHERRY
Revenue Department.

No. 22056/76-C. Puducherry, the 21st December, 1976.

NOTIFICATION

The notification No. U-11015/10/76-UTL (135), dated 3-12-76 of the Ministry of

Home Affairs, Government of India extending the Tamil Nadu Debt Relief Act, 1976 to
the Union Territory of Puducherry published in the Gazette of India, Part II, section 3 (i)
dated 3-12-1976 is republished for the general information of the public.

(By Order)

(M. JANAKIRAMAN)
DEPUTY SECRETARY TO GOVERNMENT
 603

GOVERNMENT OF INDIA
(Bharat Sarkar)

Ministry of Home Affairs.

(Grih Mantralaya)

New Delhi, the 3rd December 1976.

NOTIFICATION

G. S. R.- In exercise of the powers conferred by section 8 of the Puducherry

(Administration) Act, 1962 (49 of 1962), the Central Government hereby extends to the
Union territory of Puducherry, the TamilNadu Debt Relief Act, 1976 (President’s Act 31
of 1976), as in force in the State of TamilNadu at the date of this notification, subject to
the following modifications, namely :-

MODIFICATIONS

1. Throughout the Act, unless otherwise directed, for the words “State
Government” and “Tamil Nadu Government Gazette”, wherever they occur, the words
“Administrator” and “Puducherry Gazette” shall respectively be substituted.

2. In section 1, in sub-section (2), for the words “State of Tamil Nadu”, the words
“Union territory of Puducherry” shall be substituted.

3. In section 3,-

(i) clause (a) shall be re-lettered as clause (aa) and, before the clause as so
re-lettered, the following clause shall be inserted, namely:-

(a) “Administrator” means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the
Constitution;“;

(ii) in clause (e), the words “State Government” shall stand unmodified;

(iii) in clause (k), in the Explanation for the words “City of Madras or the City
of Madurai or the area comprised in a municipal town or a township constituted under
any law for the time being in force”, the words and figures “area comprised in a
municipality or township declared under the Puducherry Municipalities Act, 1973
(Puducherry Act 9 of 1973), shall be substituted;
 604

(iv) in clause (1),-

(a) for the words “partly in another,- ”, the words “partly in another, not
more than one unit of land” shall be substituted;

(b) sub-clauses (i) and (ii) and Explanation I shall be omitted.

4. In section 4, for the words, figures and brackets “Tamil Nadu Agriculturists
Relief Act, 1938, the Tamil Nadu Pawnbrokers Act, 1943, the Tamil Nadu
Money-lenders Act, 1957, the Tamil Nadu Debt Relief Act, 1972, the Tamil Nadu
Indebted Agriculturists (Temporary Relief) Act, 1976, the Tamil Nadu Indebted Persons
(Temporary Relief) Act, 1976”, the words and figures “Madras Pawnbrokers Act, 1943
(Madras Act 23 of 1943), us extended to the Union territory of Puducherry by the
Puducherry Pawnbrokers Act, 1966 (Puducherry Act 11 of 1966), the Puducherry
Money-lenders’ Act, 1970 (Puducherry Act 26 of 1970), the Union Territories Relief of
Agricultural Indebtedness Regulation, 1976(1 of 1976)” shall be substituted.

5. In section 5, in sub-section (8), for the words and figures “Tamil Nadu
Pawnbrokers Act, 1943 (Madras Act 23 of 1943), the words and figures “Madras
Pawnbrokers Act, 1943, as extended to the Union territory of Puducherry by the
Puducherry Pawnbrokers Act, 1966 (Puducherry Act 11 of 1996)” shall be substituted.

6. in section 13,-

(i) in sub-clause (i) of clause (f), and in sub-clause (iii) of clause (g), the words
“State Government” shall stand unmodified;

(ii) in sub-clause (v) of clause (g), for the words and figures “Tamil Nadu
Co-operative Societies Act, 1961”, the words and figures “Puducherry Co-operative
Societies Act 1972 (Puducherry Act 7 of 1973).” shall be substituted.

7. In section 14, in sub-section (3) for the words “both Houses of the Legislature
and if, before the expiry of the session in which it is so placed or the next session, both
Houses agree in making any modification in any such rule or both Houses agree”, the
words “the Legislative Assembly of Puducherry and if, before the expiry of the session
in which it is so placed or the next session, the Assembly makes any modification in any
rule or directs” shall be substituted.
 605

ANNEXURE

THE TAMIL NADU DEBT RELIEF ACT, 1976 (PRESIDENT’S ACT 31 OF 1976)
AS EXTENDED TO THE UNION TERRITORY OF PUDUCHERRY.

Enacted by the President in the Twenty-seventh Year of the Republic of India.

An Act to provide relief from indebtedness to landless agricultural labourers, rural

artisans and small farmers in the State of Tamil Nadu.

In exercise of the powers conferred by section 3 of the Tamil Nadu State

Legislature (Delegation of Powers) Act, 1976 (41 of 1976), the President is pleased to
enact as follows:-

1. Short title, extent and commencement.- (1) This Act may be called the Tamil Nadu
Debt Relief Act, 1976.

(2) it extends to the whole of the Union territory of Puducherry.

(3) It shall come into force at once.

2. Declaration.- It is hereby declared that this Act is for giving effect to the policy
of the State towards securing the principles specified in article 46 of the Constitution.

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

(a) ‘Administrator’ means the Administrator of the Union territory of

Puducherry appointed by the President under article 239 of the Constitution,

(aa) ‘agriculture’ includes,-

(i) horticulture;
(ii) the raising of crops (including plantation crops), grass or garden
produce;
(iii) dairy farming;
(iv) poultry farming;
(v) breeding of livestock;
(vi) grazing;
but does not include the cutting of wood only;

(b) ‘agricultural land’ means land used for purposes of agriculture;

(c) ‘annual household income’ means the aggregate of the annual income
from all sources of all the members of a family;
 606

(d) ‘creditor’ means a person from or in respect of whom the debtor has
borrowed or incurred a debt and includes the heirs of such person;

(e) ‘debt’ means any liability in cash or in kind, whether secured or unsecured
and whether decreed or not, but does not include arrears of taxes due to the Central
Government or a State Government or a local authority;

(f) ‘debtor’ means -’

(i) a landless agricultural labourer ; or

(ii) a rural artisan ; or
(iii) a shall farmer.

who has borrowed or incurred any debt before the commencement of this Act;

(g) ‘family’, in relation to a person, means the individual, the wife or husband,
as the case may be, of such individual and their unmarried minor children.

Explanation.- For the purpose of this clause “minor” means a person who has
not completed his or her age eighteen years;

(h) ‘interest’ means any amount or other thing paid or payable in excess of the
principal sum borrowed or pecuniary obligation incurred, or where anything has been
borrowed in kind, in excess of what has been so borrowed, by whatsoever name such
amount or thing may be called, and whether the same is paid or payable entirely in cash
or entirely in kind or partly in cash and partly in kind and whether the same is
expressly mentioned or not in the document or contract, if any,

(i) ‘landless agricultural labourer’ means a person who does not hold, whether
as owner, tenant or mortgagee with possession, or partly in one capacity and partly in
another, any agricultural land and whose principal means of livelihood is manual
labour on agricultural land and whose annual household income does not exceed two
thousand and four hundred rupees;

(j) ‘person’ means an individual or a family;

(k) ‘rural artisan’ means a person who does not hold. whether as owner,
tenant or mortgagee with possession, or partly in one capacity and partly in another,
any agricultural land and whose annual household income does not exceed two
thousand and four hundred rupees and—
 607

(i) whose principal means of livelihood is production or repair of

traditional tools, implements and other articles or things used for agriculture or
purposes ancillary thereto, or

(ii) who normally earns his livelihood by practicing any craft either by his
own labour or by the labour of the members of his family in any rural area.

Explanation.- For the purpose of sub-clause (ii) of this clause, “rural area” means
any area not being the area com-prised in a municipality or township declared under
the Puducherry Municipalities Act, 1973 (Puducherry Act 9 of 1972);

(l) ‘small farmer’ means a person whose principal means of livelihood is income
derived from agricultural land and who holds, whether as owner, tenant, or mortgagee
with possession, or partly in one capacity and partly in another not more than one unit
of land.

Explanation II.- Where any person holds as aforesaid more than one category of
land referred to in clause (o), then, for the purpose of calculating the extent of land held
by him, two hectares of unirrigated land shall be deemed to be equal to-

(i) half hectare of land having facilities for growing one irrigated crop;
(ii) half hectare of land used for growing any plantation crop or grapes or
coconut or arecanut or mulberry;
(iii) quarter hectare of land having perennial irrigation facilities, or having
facilities for growing more than one irrigated crop in a year.

Explanation III.- In this clause and in clause (o), -

(a) “irrigated” means irrigated from any source, whether Government or
Private;
(b) “plantation crop” means cardomom, cinchona, coffee, rubber or tea;
(m) ‘Tahsildar’ includes a Deputy Tahsildar in independent charge of a taluk
or sub-taluk and any other officer of the Revenue Department not below the rank of a
Deputy Tahsildar empowered by the Administrator to exercise the powers and perform
the functions of a Tahsildar under this Act;

(n) ‘transferee of the creditor’ means any person [including an institution

referred to in clause (g) of section 13] to whom-

(i) the creditor has pledged the movable property pledged to him by the
debtor and includes any subsequent transferee to whom such transferee has
pledged such movable property and also includes any person in possession of
the property pledged ; or
 608

(ii) the creditor has transferred or otherwise assigned his interest in the
property mortgaged by the debtor and includes any subsequent transferee to
whom such transferee has transferred or otherwise assigned his interest in the
property mortgaged and also includes any person in possession of the property
mortgaged;

(o) ‘unit of land’ means-

(i) two hectares of unirrigated land; or

(ii) half hectare of land having facilities for growing one irrigated crop ; or
(iii) half hectare of land used for growing any plantation crop or grapes or
coconut or arecanut or mulberry; or
(iv) quarter hectare of land having perennial irrigation facilities, or having
facilities for growing more than one irrigated crop in a year.

4. Relief from indebtedness.- Notwithstanding anything contained in the Madras

Pawnbrokers Act, 1943 (Madras Act 23 of 1943), as extended to the Union territory of
Puducherry by the Puducherry Pawnbrokers Act, 1966 (Puducherry Act 11 of 1966), the
Puducherry Money Lenders’ Act 1970 (Puducherry Act 26 of 1970), the Union territories
Relief of Agricultural Indebtedness Regulation, 1976 (1 of 1976), or in any other law for
the time being in force or in any contract or instrument having force by virtue of any
such law and save as otherwise expressly provided in this Act, with effect on and from
the commencement of this Act.-

(a) every debt advanced or incurred before the commencement of this Act
(including interest, if any), and payable by the debtor to the creditor shall be
deemed to be wholly discharged;

(b) no Civil Court shall entertain any suit or other proceeding against the
debtor for the recovery of any amount of such debt (including interest, if any) :

Provided that where any suit or other proceeding is instituted jointly against the
debtor and any other person, nothing in this section shall apply to the maintainability of
such suit or proceeding in so far as it relates to such other person;

(c) all suits and other proceedings (including appeals, revisions,

attachments or execution proceedings) pending at the commencement of this Act
against any debtor for the recovery of any such debt (including interest, if any),
shall abate:

Provided that nothing in this clause shall apply to the sale, in respect of any
such debt, of-
 609

(i) any movable property held and concluded before the commencement
of this Act;
(ii) any immovable property confirmed before such commencement;

(d) every debtor undergoing detention in a civil prison in execution of any

decree for money passed against him by a Civil Court in respect of any such debt
(including interest, if any), shall be released;
(e) every movable property pledged by a debtor shall stand released in favour
of such debtor and the creditor shall be bound to return the same to the debtor
forthwith ;
(f) every mortgage executed by the debtor in favour of the creditor shall stand
redeemed and the mortgaged property shall be released in favour of such debtor.

Explanation.- Nothing in this section shall be construed as entitling any debtor

for refund of any part of any debt repaid or interest paid already by him or recovered
from him before the commencement of this Act.

5. Creditors to file statement, etc.—(1) Every creditor referred to in clause (e) of

section 4 shall, within such period as may be prescribed, furnish to the Tahsildar having
jurisdiction over the area where such creditor has his ordinary place of business, a
statement in such form as may be prescribed containing the names of all the persons
who have pledged movable property with him, the nature and description of such
property, the amount advanced and due as on the commencement of this Act, the rate
of interest and such other particulars as may be prescribed.

(2) A debtor referred to in clause (e) of section 4 may also make an application
to the Tahsildar having jurisdiction over the area where his creditor has his ordinary
place of business for an order for the return of the movable property pledged by the
debtor.

(3) On receipt of a statement under sub-section (1) or an application under

sub-section (2), and after such inquiry conducted in the manner prescribed, the
Tahsildar shall, by order, deter-mine -

(i) ‘where a statement has been furnished by the debtor under sub-section
(1), which of the persons who have pledged movable property with him are
entitled to relief under section 4 ; and
(ii) where an application has been made by the under debtor sub-section
(2), whether the debtor is entitled to relief under section 4,

and direct the creditor to produce on or before the date specified in the order the
movable property pledged by such persons or debtor.
 610

(4) Where the movable property pledged by the debtor is in the possession of
any transferee of the creditor, the creditor shall redeem the said property from such
transferee and produce it on or before the date specified in the order referred to in
sub-section (3).

(5) If the creditors fails to produce the movable property as directed in the
order under sub-section (3).-

(a) the Tahsildar may enter any premises of the creditor or of the
transferee of the creditor [other than an institution referred to in clause (g) of
section 13] and search and seize the said property; and
(b) where the movable property is in the possession of any of the
institutions referred to in clause (g) of section 13, the Tahsildar shall,-

(i) by an order, direct the said institution to deposit. on or before the date
specified in the order, the movable property with the Tahsildar together with a
statement specifying the amount due to the said institution in respect of the said
property and simultaneously issue a certificate to the said institution to the effect
that the amount due to the said institution in respect of the said property shall be
recovered from the creditor as if it were an arrear of land revenue and paid to the
said institution; and
(ii) on the said institution depositing the said property with the Tahsildar,
acknowledge in writing the receipt of the movable property and proceed to
recover from the creditor such amount as is due to the said institution in respect
of the said property as if it were an arrear of land revenue, and on such recovery
pay the same to the said institution.

(6) After such production or recovery or deposit of the movable property

pledged, the Tahsildar shall deliver the said property to the debtor.

(7) Pending determination of the question under sub-section (3), no creditor or

the transferee of the creditor shall sell or pledge or otherwise dispose of any movable
property pledged by the debtor.

(8) Notwithstanding anything contained in sub-section (5) or in the Madras

Pawnbrokers Act, 1943 (Madras Act 23 of 1943), as extended to the Union territory of
Puducherry by the Puducherry Pawnbrokers Act, 1966 (Puducherry Act 11 of 1966), the
Tahsildar-
(a) may enter any premises of the creditor of the transferee of the creditor
[other than an institution referred to in clause (g) of section 13] and search and
seize the movable properties pledged by debtors and arrange for their safe
custody;
 611

(b) shall proceed to determine which of the movable properties so seized

are to be released to the debtors and pass orders accordingly.

(9) The provisions of sections 100 and 165 of the Code of Criminal Procedure,
1973 (2 of 1974), relating to search and seizer shall, so far as may be, apply to searches
and seizures under sub-sections (5) and (8).

6. Debtors to apply in certain cases.- (1) A debtor referred to in clause (f) of section 4
may make an application to the Tahsildar having jurisdiction over the area within
which such debtor ordinarily resides, for an order releasing the mortgaged property
and for the grant of a certificate of redemption.

(2) (a) On receipt of such application and after such enquiry conducted in the
manner prescribed, the Tahsildar shall pass an order releasing the mortgaged property
and grant a certificate of redemption in the prescribed form which shall be admissible.
as evidence of such redemption in any proceeding before any court or other authority;

(b) the Tahsildar shall also direct the creditor or the transferee of the
creditor-

(i) to deliver Possession of the mortgaged property to the debtor on or

before the date specified in the order, if the debtor is not already in possession of
the mortgaged property; and
(ii) to produce on or before the date specified in the order, the mortgage
deed or other document and the Tahsildar shall make an endorsement of
redemption on the mortgage deed or other document.
(3) Pending orders under sub-section (2), no creditor or the transferee of the
creditor shall transfer or otherwise assign his interest in, or exercise his right of
foreclosure in respect of the property mortgaged by the debtor.

(4) Where the mortgaged property has been transferred or any right therein
has been assigned to any of the institutions referred to in clause (g) of section 13 by the
creditor, the Tahsildar shall recover from the creditor such amount as is due to such
institution in respect of the said mortgaged property, as if it were an arrear of land
revenue, and shall pay the same to the said institution.

7. Finality of orders passed under this Act.- Every order of the Tahsildar under
section 5 or section 6 shall, subject to appeal under section 8, be final and shall not be
called in question in any court

8. Appeal.- (1) Any person aggrieved by an order made by the Tahsildar under
this Act may, within such period and in such manner as may be prescribed, appeal to
such authority as may be specified by the Administrator in this behalf.
 612

(2) In deciding the appeal, the authority specified under sub-section (1) shall
follow such procedure as may be prescribed and the decision of such authority on such
appeal shall be final and shall not be called in question in any court.

9. Legal practitioner not to appear.- No party to any proceeding under this Act shall
be entitled to be represented by a legal practitioner.
Explanation.- In this section, “legal practitioner” shall have the meaning assigned
to it in section 2 of the Advocates Act, 1961 (2 of 1961).

10. Penalty.- (l) Any person failing to furnish the statement under section 5 or to
comply with the order made or direction given under section 5 or section 6 or otherwise
contravening the provisions of either of the said sections shall be liable to imprisonment
for a term which shall not be less than three months but which may extend to one year
and with fine which shall not be less than one thousand rupees but which may extend
to five thousand rupees.
(2) Every offence punishable under sub-section (1) shall be cognisable.
(3) Every offence punishable under sub-section (1) shall be tried in a summary
way and the provisions of sections 262 to 265 (both inclusive) of the Code of Criminal
Procedure, 1973 (2 of 1974), shall, as far as may be, apply to such trial.

11. 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 of the company, shall also be deemed to be
guilty of the offence and shall be liable to be proceeded against and punished
accordingly.
Explanation.- For the purpose of this section,-
(a) “company” means any body corporate and includes a firm or other
association of individuals ; and
(b) “director”, in relation to a firm, means a partner in the firm.
 613

12. Burden of proof.- In any suit or proceeding, the burden of proving that the
debtor is not entitled to the protection of this Act, shall, notwithstanding anything
contained in any law for the time being in force, lie on the creditor.

13. Certain debts and liabilities not to be affected.- Nothing in this Act shall apply to
the following categories of debts and liabilities of landless agricultural labourers, rural
artisans and small farmers, namely:-

(a) any rent due in respect of any property including agricultural land let
out to a debtor;
(b) any amount recoverable as arrears of land revenue;
(c) any liability arising out of breach of trust or any tortious liability;
(d) any liability in respect of wages or remuneration due as salary or
otherwise for services rendered;
(e) any liability in respect of maintenance whether under a decree of a
court or otherwise;
(f) a debt due to-
(i) the Central Government or any State Government;
(ii) any local authority;

(g) save as otherwise provided in this Act, any liability in respect of any
sum due to-
(i) (A) any banking company to which the Banking Regulation Act,
1949 (10 of 1949) applies;
(B) the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955);
(C) any subsidiary bank as defined in clause (K) of section 2 of the
State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(D) any corresponding new bank as defined in clause (d) of section
2 of the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1970 (5 of 1970);
(E) the Agricultural Refinance and Development Corporation,
established under the Agricultural Refinance and
Development Corporation Act, 1963 (10 of 1963);
(F) any other financial institution notified in this behalf by the
Administrator in the Puducherry Gazette;
(ii) any Government company within the meaning of the Companies
Act, 1956 (1 of 1956)
(iii) any corporation owned or controlled by the Central Government
or any State Government;
(iv) the Life Insurance Corporation of India;
 614

(v) any Co-operative Society including a land development bank,

registered or deemed to be registered under the Puducherry Co-operative
Societies Act, 1972 (Puducherry Act 7 of 1973) ; and

(h) any debt which represents the price of property whether movable or
immovable purchased by a debtor or any amount due under a hire
purchase agreement.

14. Power to make rules.- (1) The Administrator may make rules to carry out the
purpose of this Act.

(2) All rules made under this Act shall be published in the Puducherry
Gazette, and unless they are expressed to come into force on a particular day shall come
into force on the date on which they are so published.

(3) Every rule made under this Act shall, as soon as possible, after it is made,
be placed on the Table of the Legislative Assembly of Puducherry and if, before the
expiry of the session in which it is so placed or the next session, the Assembly makes
any modification in any such rule or directs that the rules should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as the case may
be, so, however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.

15. Effects of other laws. – Save as otherwise provided in this Act, the provisions of
this Act shall be in addition to, and not in derogation of, any other law for the time
being in force.

______