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NATIONAL DAIRY DEVELOPMENT BOARD ACT, 1987

37 of 1987

15th November, 1987

The National Dairy Development Board (NDDB) was set up in 1965 by the Government of India as a registered society with the primary objective for providing technical services to implementing agencies in building up their dairy projects on co-operative lines on the pattern of the Kaira District Co-operative Milk Producers' Union Limited Anand, popularly known as the 'Anand pattern'. The National Dairy Development Board has since been progressively playing a wider role together with the Indian Dairy Corporation which is a company formed in 1970 to give supportive assistance in the implementation of the Operation Flood Programms. 2. The Central Government had appointed a Committee.- Commonly known as the Jha Committee which had recommended the formation of a body corporate to perform the functions of both these institutions taking case to ensure that the autonomy and freedom and flexibility presently enjoyed by the National Dairy Development Board is not adversely affected thereby. 3. To achieve the above, it is proposed to declare the National Dairy Development Board as an institution of national importance and incorporate it as a statutory body with the enlargement of functions of the National Dairy Development Board over the years, it is felt that the functions of both the institutions can henceforth be performed by the corporate body and as such it is proposed to vest the undertakings of the Indian Dairy Corporation in the body corporate and dissolve the Indian Dairy Corporation. 4. The name of the National Dairy Development Board is retained for the corporate body so that there may be a continuity in reputation and understanding both in India and abroad. Provisions have been included in the Bill to ensure that the body corporate is able to carry on all the functions that they are discharging at present and play an enlarged and vital role with regard to milk, milk products and other commodities with which it is concerned or in respect of which the Government deems it necessary to involve them, 5. The Bill also makes provision for better administration of the body corporate including the Constitution of the fund, provisions for accounts, audit, etc. 6. The Notes on clauses explain in detail the provisions of the Bill. 7. The Bill seeks to achieve the above objectives, -Gaz. of Ind., 21-8-1987, Pt. II, S. 2, Ext" p. 91 (No. 37).

An Act to declare the institution known as the National Dairy Development Board in the State of Gujarat to be an institution of national importance and for the vesting in that body corporate of the undertakings of the Indian Dairy Corporation with a view to provide for the administration and the carrying on of the functions to be performed by the body corporate more effectively throughout the country and for matters connected therewith and incidental thereto. Whereas the National Dairy Development Board, a society formed and registered under the Societies Registration Act, 1860has been serving the country by the adoption of a co-operative strategy, being a strategy evolved at Anand (Gujarat), for the economic development of the rural masses and has been playing a vital role in improving the quality of life of the people through co- operative effort; And whereas the objects of the National Dairy Development Board are such as to make it an institution of national importance and to constitute it as a body corporate : And whereas the functions of the Indian Dairy Corporation, a company formed and registered under theCompanies Act, 1956, and the functions of the National Dairy Development Board are complementary to each other and aimed at achieving common objectives: And whereas it is necessary that the freedom and flexibility of operation hitherto available to the National Dairy Development Board should continue to be available to it so as to enable it to perform its functions more effectively and to play a wider and increasingly important role in serving the nation; And whereas it is considered necessary to vest the undertakings of the Indian Dairy Corporation in the National Dairy Development Board and to dissolve the said Corporation with a view to provide for the administration and the carrying on of the functions to be performed by the body corporate more eftectively. Be it enacted by Parliament in the Thirty-eighth Year of the Republic of India as follows :-

SECTION 01: SHORT TITLE AND COMMENCEMENT

(1) This Act may be called the National Dairy Development Board Act, 1987.

(2) It shall come into force on such datea as the Central Government may, by notification in the Official Gazette, appoint.

SECTION 02: DECLARATION OF NATIONAL DAIRY DEVELOPMENT BOARD AS AN INSTITUTION OF NATIONAL IMPORTANCE

Whereas the objects of the National Dairy Development Board at Anand in the State of Gujarat are such as to make the institution one of national importance, it is hereby declared that the National Dairy Development Board is an institution of national importance.

SECTION 03: DEFINITIONS

In this Act, unless the context otherwise requires,-'

(a) "appointed day" means the date of commencement of this Act;

(b) "Board" means the Board of Directors of the National Dairy Development Board;

(d) "Companies Act" means theCompanies Act, 1956-;

(e) "director" means a director of the National Dairy Development Board, and includes the Chairman;

(f) "foodstuffs" means such of the foodstuffs as are included in the definition of essential commodities as contained in clause (a) of'section 2-of the Essential Commodities Act, 1955;

(g) "Indian Dairy Corporation" means the Indian Dairy Corporation, a company formed and registered under the Companies Act, and having its registered office at Baroda in the State of Gujarat.

(h) "milk product" means-

(i) sterilised standardised, recombined, toned, double-toned, skimmed, flavoured or acidified milk;

(ii) ice-cream;

(iii) cream:

(iv) cheese;

(v) butter;

(vi) milk powders;

(vii) weaning foods with milk and infant milk foods; (viii) mailed milk foods with or without cocoa powder; (ix) ghee; (x) anhydrous milk fat and butter oil; (xi) casein;

(xii) any other product containing milk or all or any of the milk products specified above which the Central Government may by notification in the Official Gazette, specify in this behalf;

(i) "National Dairy Development Board" means the National Dairy Development Board incorporated undersection 4-;

(j) ''Prescribed'' means prescribed by regulations made under this Act;

(k) "restructuring and streamlining", in relation to the organisational and functional set-up of the National Dairy Development Board, includes-

(i) opening or closing of units or offices:

(ii) revision of the organisational and functional set-up:

(iii) declaration of staff required;

(iv) integration of posts, fixation of seniority and pay scales:

(v) integration of required personnel in the revised set-up and issuance of appointment orders in that behalf;

(vi) delcaration or demarcation of duties and responsibilities attendant to posts;

(vii) declaration of posts equivalent to one another; and

(viii) any other matter that may be necessary or incidental to meet the organisational or functional needs of the National Dairy Development Board;

(1) "society" means the National Dairy Development Board, a society formed and registered under theSocieties Registration Act, 1860 -and functioning as such immediately before the appointed day;

(m) words and expressions used herein and not defined, but defined in the Companies Act, have the meanings respectively assigned to them in that Act.

SECTION 04: INCORPORATION OF NATIONAL DAIRY DEVELOPMENT BOARD

( 1 ) The National Dairy Development Board is hereby constituted a body corporate by the same name, and as such body corporate, it shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, sue and be sued.

(2) The head office of the National Dairy Development Board shall be at Anand in the State of Gujarat.

(3) The National Dairy Development Board may establish units, offices, branches or agencies at any such place in or outside India as it may consider necessary.

SECTION 05: VESTING OF UNDERTAKINGS OF INDIAN DAIRY CORPORATION IN NATIONAL DAIRY DEVELOPMENT BOARD AND DISSOLUTION OF INDIAN DAIRY CORPORATION

( 1 ) On and from the appointed day, subject to the other provisions of this Act, all the undertakings of the Indian Dairy Corporation shall stand transferred to and vest in the National Dairy Development Board.

(2) Notwithstanding anything contained in the Companies Act, the Indian Dairy Corporation shall, on and from the appointed day, stand dissolved by virtue of the provisions of this Act.

SECTION 06: EFFECT OF INCORPORATION OF NATIONAL DAIRY DEVELOPMENT BOARD

On and from the appointed day-

(a) all properties and assets, movable and immovable of, or belonging to, the society and the Indian Dairy Corporation (hereinafter referred to as the dissolved company) shall vest in the National Dairy Development Board;

(b) all the rights, debts, liabilities, interests, privileges and obligations of the society and the Indian Dairy Corporation shall stand transferred to, and be the rights, liabilities, interests privileges and obligations of the National Dairy Development Board;

(c) without prejudice to the provisions of clause (b), all debts liabilities and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for, the society or the dissolved company, immediately before the appointed day for or in connection with their purposes, shall be deemed to have been incurred, entered into, or engaged to be done by, with or for the National Dairy Development Board;

(d) all sums of money due to the society and the dissolved company, immediately before the appointed day shall be deemed to be due to the Board;

(e) every subsidiary or the society and the dissolved company shall become the subsidiary of the National Dairy Development Board:

(f) every organisation, which was being managed immediately before the appointed day by the society or, as the case may be, by the dissolved company, shall be managed by the National Dairy Development Board for such period to such extent and in such manner as the circumstances may require;

(g) every organisation which was getting financial, managerial or technical assistance from the society or the dissolved company, immediately before the appointed day, may continue to be given financial, managerial or technical assistance, as the case may be, by the National Dairy Development Board, for such period, to such extent and in such manner as the National Dairy Development Board may deem fit;

(h) the amount representing the capital of the dissolved company shall form part of the funds of the National Dairy Development Board;

(i) any reference to the society or, as the case may be, to the dissolved company, in any law other than this Act or in any contract or other instrument, shall be deemed to be reference to the National Dairy Development Board.

SECTION 07: SAVING OF LEGAL PROCEEDINGS

If, on the appointed day, there is pending any suit, arbitration, appeal or other legal proceedings of whatever nature by or against the society or the dissolved company, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the incorporation of the National Dairy Development Board under section 4-or dissolution of the Indian Dairy Corporation under section 5-, as the case may be, but the suit, arbitration, appeal or other proceedings may be continued, prosecuted and enforced by or against the National Dairy Development Board in the same manner and to the same extent as it would or may have been continued, prosecuted and enforced by or against the society or the dissolved company, as the case may be. if this Act had not been passed.

SECTION 08: MANAGEMENT OF NATIONAL DAIRY DEVELOPMENT BOARD AND COMPOSITION OF ITSBOARD OF DIRECTORS

(1) The general superintendence, direction, control and management of the affairs and business of the National Dairy Development Board shall vest in a Board of Directors, which shall exercise all powers and do all acts and things which may be exercised or done by the National Dairy Development Board.

(2) The Board of Directors of the National Dairy Development Board shall consist of the following, namely:-

(a) a Chairman;

(b) one director from amongst the officials of the Central Government;

(d) whole-time directors, not more than three in number, from amongst the executives of the higher grade of the National Dairy Development Board:

(e) one director, being an expert, from outside the National Dairy Development Board.

(3) The Chairman and the director referred to in Clause (b) of sub-section (2) shall be nominated by the Central Government and the directors referred to in clauses (c), (d) and (e) of sub-section (2) shall be nominated by the Central Government after consultation with the Chairman : Provided that the Chairman and the director referred to in a clause (e) of sub-section (2) shall be persons professionally qualified in one or more specialities, namely, dairying, animal husbandry, rural economics, rural development, business administration or banking.

(4) The Board may associate with itself, in such manner, on such terms and for such purposes as it may deem fit, any person whose assistance or advice it may desire in complying with any of the provisions of this Act, and a person so associated shall have the right to take part in the discussions of the Board relevant to the purposes for which he has been associated but shall not have the right to vote.

SECTION 09: TERMS OF OFFICE AND CONDITIONS OF SERVICE, ETC., OF CHAIRMAN AND DIRECTORS

( 1 ) The Chairman shall be the Chief Executive of the National Dairy Development Board and shall hold office for such period as the Central Government may determine and any person so nominated shall be eligible for renomination.

(2) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the services of the Chairman, at any time before the expiry of the period determined under that sub-section, by giving him notice of not less than three months in writing or three months' salary and allowances in lieu thereof, and the Chairman shall also have the right to relinquish his office, at any time before the expiry of the period specified under that sub-section, by giving to the Central Government notice of not less than three months in writing,

(3) The Chairman shall receive such salary and allowances as may be determined by the Central Government.

(4) Where an executive of the National Dairy Development Board has been nominated undersection 8-as a whole-lime director thereof, such nomination shall be without prejudice to his continuance as an executive of the National Dairy Development Board and he may be continued as such executive on his ceasing to be a director,

(5) The directors nominated under Clause (c) of sub-section (2) of section 8-shall hold office for such period not exceeding one year at a time as the Central Government may determine and the directors nominated under clauses (d) and (e) of sub-section (2) of section 8 shall hold office for such period as the Central Government may determine.

(6) Every director, other than the Chairman, shall hold office during the pleasure of the Central Government.

(7) The directors referred to in clauses (b), (c) and (e) of sub-section (2) of section 8-shall be paid such allowances as the Central Government may determine.

SECTION 10: MEETINGS OF BOARD

( 1 ) The Board shall meet at the head office of the National Dairy Development Board or any of its offices at such times as the Chairman may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as may be prescribed.

(2) The Chairman or, if he is unable to attend a meeting of the Board, any other director nominated by the Chairman in this behalf and, in the absence of such nomination or where there is no Chairman, any director chosen by the directors present from among themselves, shall preside at the meeting.

(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman or the person presiding shall have the right to exercise a second or casting vote.

(4) Save as otherwise provided in sub-section (3), every director of the Board shall have one vote.

SECTION 11: MANNER OF TRANSACTING BUSINESS OF BOARD

(1) Subject to the provisions of this Act, the Board shall, in the discharge of its functions, act on second business principles with due regard to public interest.

(2) Save as otherwise prescribed, the Chairman shall have the powers of general superintendence, direction, control and management of the affairs and business of the National Dairy Development Board, and he may exercise all other powers and do all acts and things which may be exercised or done by the Board.

(3) The Chairman may, when he is unable to discharge his functions by reason of his being away or otherwise, authorise any whole time director to discharge all or any of his functions for a temporary period.

(4) In the absence of the Chairman and of an authorised whole-time director as referred to in sub-section (3), for whatsoever reason, the powers of the Chairman may be exercised by the senior- most of the whole-time directors referred to in clause (d) of sub-section (2) of section 8-.

SECTION 12: MANAGEMENT COMMITTEES

(1) The Board may from time to time constitute such number of management committees as it may deem fit for the purpose of assisting the Board in the efficient discharge of its functions.

(2) A management committee shall consist of such number of persons (whether directors or otherwise) as its members as the Board may determine, subject to the condition that in every such committee either the Chairman or a whole-time director shall be a member thereof.

(3) Every management committee shall function under the general control, direct and superintendence of the Board, and for such duration and in such manner as the Board may direct,

(4) The minutes of every meeting of the management committees shall, as soon as may be, be laid before the Board.

SECTION 13: ALLOWANCES, ETC., OF MEMBERS OF MANAGEMENT COMMITTEES

( 1 ) The members of any management committee, other than the Chairman and whole-time directors, may be .paid such allowances, if any, as may be prescribed, for attending the meetings of the management committee or for attending to any other work of the National Dairy Development Board.

(2) All other matters pertaining to the conduct of proceedings of the management committees shall be such as may be prescribed.

SECTION 14: DELEGATION OF POWERS TO MANAGEMENT COMMITTEE ETC

( 1 ) The Board may delegate to any management committee or to any member thereof or to any officer of the National Dairy Development Board, subject to such conditions and limitations, if any, as may be specified by the Board, such of its powers and functions under this Act as it may deem necessary for the efficient discharge of its functions.

(2) The Board may, if it considers it necessary so to do in the public interest, delegate any of its powers and functions, subject to such conditions and limitations, if any, as may be specified by it, to a cooperative federation at the National or State level, or to any organisation owned, managed, controlled or assisted by the National Dairy Development Board.

SECTION 15: DELEGATION OF POWERS TO WHOLE-TIME DIRECTORS, ETC

The Board may, from time to time, by order, delegate, subject to such general and special conditions as it may deem fit to impose, the powers of appointment, termination, suspension and dismissal from service of any employee of the National Dairy Development Board,-

(a) who is drawing a salary in such higher grade as may be prescribed, to a whole-time director, and

(b) who is drawing a salary in any grade, other than a higher grade prescribed under Cl. (a), to such officer of the National Dairy Development Board as it may deem fit : Provided that in relation to employees falling under clause (b), the Chairman may, if he considers it necessary or expedient so to do, perform the functions of the Board under this section.

SECTION 16: POWERS AND FUNCTIONS OF NATIONAL DAIRY DEVELOPMENT BOARD

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