Updated: Wednesday July 13, 2016/AlArbia'a Shawwal 08, 1437/Budhavara Asadha 22, 1938, at 06:02:41 PM
The Agricultural Development
ORDINANCE LX OF 2002
An Ordinance to provide for reorganization
and conversion of the Agricultural Development Bank of
F.No.2(1)/2002-Pub. dated 4-10-2002.---The following Ordinance promulgated by the President is hereby published for general information:---
Whereas it is expedient to provide for reorganization and the conversion of Agricultural Development Bank of Pakistan into a public limited company for ensuring good governance, autonomy, delivering high quality and viable financial services to a greater number of rural clientele and adequate returns to the stake-holders and also for taking over the entire undertaking of the said Bank and for matters connected therewith or incidental thereto;
And whereas, the President is satisfied that circumstances exist which render it necessary to take immediate action;
Now, therefore, in pursuance of the Proclamation of Emergency of the Fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:---
title and commencement---(1) This Ordinance may be called the Agricultural
Development Bank of
(2) It extends
to the whole of
(3) It shall come into force at once.
2. Definitions.--(1) In this Ordinance, unless there is anything repugnant in the subject or context,---
"ADBP" means the Agricultural Development Bank of
(b) "assets" means rights, powers of every description and includes all properties, movable or immovable, tangible or intangible, mortgages, charges and claims, cash and bank balance, advances, reserve funds, investments and all other interest or rights in the name of ADBP, as the case may be;
(c) "Company" means the Company formed and registered pursuant to section 3;
(d) "contracts" mean all contracts, agreements, bonds, guarantees, indemnities, representations, obligations, undertakings arid other legal documents and instruments of every description executed by or on behalf of ADBP, including employment, investment, sales, and financial contracts with whomsoever;
(e) "deposits" means the deposits received by ADBP during the course of its business;
(f) "effective date" means the date specified in the order issued under subsection (1) of section 4;
(g) "liabilities" means all liabilities lawfully incurred by ADBP and includes all debts, liabilities, obligations and duties of every kind imposed thereon;
(h) "Order" means an order made by the Federal Government under subsection (1) of section 4;
(i) "proceedings" include applications, appeals, awards, petition reviews and revisions tiled or pending in an suit, arbitration or other legal or administrative proceedings;
(j) "transfer" means the transfer of assets, contracts, deposits, liabilities, proceedings and undertakings of ADBP, as the case may be; and
(k) "undertaking" includes all projects venture and any other operations, undertaken by ADBP in collaboration with some other person.
(2) All expressions and words used but not defined in this Ordinance shall have the same meanings as in the Companies Ordinance, 1984 (XLVII of 1984).
3. Registration of the company.--As soon as may be, after the commencement of this Ordinance, the Federal Government shall, in accordance with the provisions of this Ordinance and in consultation with the shareholders of ADBP, take steps for the conversion of the ADBP, existing immediately before such commencement into a public limited company under the Companies Ordinance, 1984 (XLVII of 1984).
4. Transfer and vesting of assets, contracts, liabilities, proceedings and undertakings.---(1) After the registration of the Company, the Federal Government shall by an order published in the Official Gazette, direct that all the assets, contracts, liabilities, proceedings and undertakings of ADBP stand transferred to, vest in the Company from the date specified therein, upon such terms and conditions as may be determined by the Federal Government in this behalf.
(2) The Order issued under subsection (1) shall, inter alia, provide for,---
(a) the transfer of all the assets, contracts, liabilities, proceedings and undertakings of ADBP to the Company;
(b) the allotment of shares or debentures of the Company to the shareholders and debenture-holders of ADBP, as the case may be, after determining the net assets value of their shareholding in ADBP on the effective date;
(c) such incidental, consequential and supplemental matters as are necessary to the transfer of assets, contracts, liabilities, proceedings and undertakings under this Ordinance; and
(d) the dissolution of ADBP from the effective date.
(3) The value ascribed to the assets and liabilities transfer to, and vested in, the Company shall represent the net value of assets for taxation, depreciation or any other purposes.
(4) Notwithstanding anything in the Stamp Act, 1899 (II of 1899), no stamp duty or any other charges shall be payable by the Company under any law for the time being in force for the transfer and vesting of the assets, contracts, liabilities, proceedings or undertaking of ADBP to the Company or any share or securities issued by the company in favour of the shareholders or debenture-holders of ADBP.
(5) Notwithstanding the provisions of section 146 of the Companies Ordinance, 1984 (XLVII of 1984), the Company shall, upon transfer, continue, all undertakings of ADBP as were being carried on immediately prior to the effective date.
5. Continuation of receiving deposits and other business.--(1) Notwithstanding anything contained in any other law for the time being in force, the Company shall take and maintain existing -deposits, continue lending and to do any other business, which were being undertaken by ADBP without prejudice to its application to the State Bank of Pakistan for a licence to transact banking business.
(2) The Company shall be authorised to use the word "bank" or any of its derivatives as a part of its name.
Explanation.--For the purpose of this section the expression "existing deposits" means deposits received by the company as a part of 'the transfer.
6. Continuation in service of the company.--(1) The employees of ADBP who were in the service of ADBP before the effective date shall stand transferred to and become the employees of the Company as of the effective date on the same terms and conditions and shall be subject to the same rules and regulations as were applicable to them before the effective date.
(2) Notwithstanding anything contained in law, contracts, agreement or the conditions of service no person transferred to the Company in pursuant to subsection (1) shall be entitled to any compensation by reason of such transfer.
7. Contracts and proceedings.--(1) All agreements and contracts to which ADBP may have been a party or beneficiary, subsisting immediately before the effective date, shall be deemed to have been made by the Company.
(2) All proceedings by or against or relating to ADBP, pending on the effective date, before any Court, tribunal, arbitrator or other forum shall be recovered, continued, prosecuted, defended, enforced and executed by the company in the same manner as would have been recovered, continued, prosecuted, - defended, enforced and executed by ADBP under the Agricultural Development Bank Ordinance, 1961 (IV of 1961) and relevant provisions of the said Ordinance, mutatis mutandis, shall continue to apply to these proceedings notwithstanding the repeal of the said Ordinance.
8. Bar of jurisdiction and indemnity.--(1) No Court, tribunal or any authority shall question anything done, order made, step or action taken or purported to be made, done or taken which is in good faith, done, made or taken under this Ordinance.
(2) No suit, prosecution or other legal proceedings or action shall lie against the Federal Government, ADBP, the Company or any other person for anything which is in good faith done or intended to be done under this Ordinance or any rule or order trade thereunder.
9. Power to make rules.--The Federal Government may, by notification in the official Gazette, make rules for conveying out the purposes of this Ordinance.
10. Overriding effect.--The provisions of this Ordinance and any rules or order made thereunder shall have effect notwithstanding anything contained in any other law for the time being in force, or in any agreement, contract, decree, order or any other instrument whatsoever.
11. Removal of difficulties.--If any difficulty arises in giving effect to any provisions of this Ordinance, the Federal Government may make such orders, not inconsistent with the provisions of this Ordinance, as may appear to it, to be necessary for the purpose of removing the difficulty.
12. Repeal.-Immediately after the dissolution of the ABDP in pursuance of clause (d) of subsection (2) of section 4 the Agricultural Development Bank Ordinance, 1961 (IV of 1961), shall stand repealed from the effective date.
Agricultural Development Bank Rules, 1961
S. R. O. 810 (K) 61 :In exercise of the powers conferred by section 38 of the Agricultural Development Bank Ordinance, 1961 (IV of 1961), the Central Government is pleased to make the following rules :----
1. Short title and commencement.(1) These rules may be called the Agricultural Development Bank Rules, 1961.
(2) They shall come into force at once.
2. Definition.In these rules, unless there is anything repugnant in the subject or context,
(a) "borrower" includes a person Who has applied or proposes to apply for loan ;
(b) "loan" includes advance and credit and may be in money or in kind
(c) "non-official Director" means a Director other than an official Director ;
(d) "Official Director" means a Director who is an official serving under the Central or Provincial Government ;
(e) "Ordinance" means the Agricultural Development Bank Ordinance, 1961 ; and
(f) "section" means a section of the Ordinance.
CHAPTER II.SHARES OF THE BANK
3. Allotment of Shares.(1) Subject to the provisions of the Ordinance and these rules the shares of the Bank shall be under the control of the Board.
(2) Subject to the provisions of section 4 shares shall be allotted to the Central Government, the Provincial Governments, the co-operative societies and the members of the public for the amounts subscribed by them from time to time.
4. Inspection of Shares Register.(1) The Share Register maintained under section 6 shall, except when closed under the provisions of these rules, be open to inspection, free of charge, by any share-holder at the Head Office of the Bank during business hours, subject to such reasonable restrictions as the Bank may impose, but so however that not less than two hours in every working day are allowed for such inspection.
(2) A share-holder shall not make a copy of any entry in the Share Register, but may, except when the register is closed, require a copy of any such entry or any part thereof to be supplied to him on payment in advance of charges at the rate of fifty paisa for every hundred or fraction of hundred words to be copied.
5. Closure of share register.The Board may, at any time, by giving notice by public advertisement, close the Share Register for such period not exceeding six weeks as it may consider necessary.
6. Share certificate.(1) Every share certificate shall be issued under the common seal of the Bank.
(2) Every share certificate shall specify the number and denoting numbers of the share or shares to which it relates.
(3) Every share-holder, shall be entitled to obtain from the Bank, free of charge, one share certificate in respect of the total number of shares allotted to him or, where the number of shares held by him exceeds five hundred, for every five hundred shares.
(4) A share-holder may request the Bank to issue a separate share certificate for any number of shares held by him, but for every share certificate required in excess of the number of certificates to which the share-holder is entitled under sub-rule (3) he shall pay to the Bank a sum of one rupee.
7. Renewal of share certificate.(1) If any share certificate is worn out or defaced or tendered for sub-division, then upon production thereof at the Head Office of the Bank, a new certificate or certificates may be issued in lieu thereof.
(2) Where any share certificate is alleged to have been lost or destroyed, then, upon production of such evidence of loss or destruction and execution of such indemnity bond, with or without surety, as the Board may require, a new certificate in lieu thereof shall be issued to the party entitled to the share certificate alleged to have been lost or destroyed, and the person applying for a new share certificate under this rule shall pay to the Bank all the expenenses incurred in connection with the investigation of the circumstances of loss or destruction and the execution of the indemnity bond.
(3) For every certificate issued under sub-rules (1) and (2) the share-holder shall pay one rupee to the Bank.
8. Transfer of Shares.(1) Subject to the restrictions contained in the Ordinance shares shall be transferable with the previous approval of the Central Government.
(2) Every transfer of shares shall be in the following form, namely :-----
We A. B. (name and address) (hereinafter called "the Transferor") in consideration of the sum of Rupees .. paid to us by C. D. (name and address) (hereinafter called "the Transferee") do hereby transfer to the transferee the share (or shares) number .. in the Agricultural Development Bank to hold unto the transferee and their assigns, subject to the several conditions on which we would hold the same at the time of the execution hereof and so, the transferee, do hereby agree to take the said share (or shares) subject to the conditions aforesaid and we the transferee request that we be registered in respect of the said share (shares) in the Share Register.
As witness our hands . . . . . this day
of . . . .
Transferor . . . . . (Address)
Witness . . . . . (Address)
Transferee . . . . . (Address)
Witness . . . . . (Address)
(3) An instrument of transfer of shares in the foregoing form may be signed by the transferor or the transferee or by any person duly authorised in writing by the transferor or the transferee, and the signature of the transferor or the transferee shall in each case be attested by a witness who shall sign the said form in the space under the signature intended to be attested ; and the address of each witness shall be given in the space provided in the form for the same.
(4) Every instrument of transfer of shares executed as aforesaid shall be submitted to the Board and, subject to the provisions of the Ordinance, these rules and the regulations made under the Ordinance, the transfer shall with the previous permission of the Board in writing, be entered in the Share Register.
(5) No transfer of shares shall take effect until it has been entered in the Share Register under sub-rule (4) ; and until it is so entered the transferor, notwithstanding any contract to the contrary but without prejudice to the rights and liabilities of the transferor and the transferee inter se, transferor shall continue to hold the shares intended to be transferred.
9. Conditions for entry of transfer of shares in Share Register.(1) No transfer of shares shall be entered in the Share Register unless,---
(a) a sum of rupees five, or, if the value of shares transferred is less than five hundred rupees, a sum equal to one per cent. of such value, is paid to the Bank in respect thereof, which sum shall not be refunded in any case ;
(b) the instrument of transfer is accompanied by the certificate of the shares to which it relates and such other evidence of the transferor's title and rights as the Bank may require.
(2) On receiving an instrument of transfer with the request to register the transfer, the Board shall make such enquiries as it considers necessary to satisfy itself that the proposed transferee is qualified under the Ordinance and these rules to be registered as a share-holder.
10. Bank'e lien on shares.(1) The Bank shall have first charge upon all shares and the proceeds of their sale for and in respect of all debts, liabilities and engagements which the share-holder either solely or jointly with any other person owes to, or has entered into with, the Bank, whether the payment, fulfilment or discharge thereof has become due or not, and such charge shall extend to all dividends from time declared in respect of such shares.
(2) Unless otherwise agreed the entry of a transfer; of shares in the Share Register shall not operate as waiver of the Bank's lien, if any, on such shares.
CHAPTER III.GRANT, SECURITY AND RECOVERY OF LOANS
11. Conditions for grant of loans.(1) No loan shall be sanctioned by the Bank unless it has investigated the extent of the actual legitimate credit needs of the borrower.
(2) No loan sanctioned by the Bank or any portion thereof shall be paid, or made available, to the borrower unless the Bank has satisfied itself that the actual legitimate credit needs of the borrower continue to exist at the time of payment or making the loan available.
(3) Loan shall ordinarily be given in kind, but in cash may also be granted at the discretion of the Bank where its opinion, the circumstances of the case so warrant.
(4) The Bank shall in no case grant any loan in excess of the repaying capacity of the borrower as determined by the Bank.
(5) No loan shall be granted by drawing, accepting, discounting, buying and selling or rediscounting of the bills of exchange, promissory notes or other negotiable instruments unless they bear two or more signatures, one of which shall be that of a scheduled bank or any corporation approved by the Central Government for the purpose.
12. Term of loan.(1) A loan may be short term, medium term or long term loan, according to the period in which it is required to be fully repaid.
(2) A short term loan is a loan which is to be fully repaid within eighteen months of payment by the Bank of the amount of loan or its first instalment to the borrower.
(3) A medium term loan is a loan which is not a short term loan and is to be fully repaid within five years of payment by the Bank of the amount of loan or its first instalment to the borrower.
(4) A long term loan is loan which is to be fully repaid in any period exceeding five years from the date of payment by the Bank of the amount of loan or its first instalment to the borrower.
13. Security for medium and long term loans.Every medium term or long term loan shall be fully secured by a mortgage of immovable property but the Bank may in suitable cases accept a pledge or assignment of gold, Government securities or life insurance policies in favour of the Bank in lieu of such mortgage.
14. Extent upto which loans may be granted against different types of
securities.(1) The total amount of loan
to be granted shall not exceed
the value of security calculated on the following basis, namely:---
(i) eighty per cent of the market value or face value of Government securities, whichever is less;
(ii) seventy-five per cent of the appraised value of tea crop;
(iii) seventy per cent of the value of gold determined at Rs. 100 per total for gold content of maximum fineness;
(iv) seventy-five per cent of the surrender value of life insurance policy with the condition that the policy is kept alive by prompt payment of the premium;
(v) fifty per cent. of the appraised value of the security in all other cases, unless in any suitable case, where land is offered as security the sanctioning authority for reasons to be recorded in writing decides to relax that limit, in which case loan may be granted up to sixty-six per cent of the appraised value of the land.
(2) In appraising the value of land or other property for purposes security any increase or accretions likely to be made with the help of the loan shall not be taken into account.
(3) Where any property offered as security is already subject to any mortgage, charge or other encumbrance, its value for purposes of security shall be calculated at fifty per cent of its appraised value reduced by double the amount secured (including interest thereon) by such mortgage, charge or encumbrance or by such lesser amount, not being less than the amount actually so secured (including interest thereon), as the Chairman thinks fit:---
Provided that nothing in this rule shall prevent the sanctioning authority from refusing to accept such property as security for want of clear title of the intending borrower.
15. Insurance of security.All property pledged, hypothecated or mortgaged with the Bank shall, as far as may be, be insured at the expense of the borrower, with an insurance company approved by the Bank, for the period for which the property is so pledged, hypothecated or mortgaged.
16. Expenses for which a borrower is liable.(1) The expenses actually incurred on visits by the officers, servants or representative of the Bank to any place or establishment for the purpose of ensuring that the loan made by the Bank is being properly applied for the purpose approved by the Bank and that the disposal of out-put and other activities of the borrower are not prejudicial to the financial interests of the Bank, shall be charged by the Bank from the borrower, and before inspection is undertaken, the Bank may require the borrower to deposit the amount of expenses estimated to be incurred on such inspection.
(2) When the Bank has to incur an expenditure on account, or in consequence of any act or omission on the part of the borrower, or any person acting on his behalf, the borrower shall be liable to pay to the Bank the amount actually so incurred and the Bank may require the borrower to deposit such sum as may be estimated by it to be necessary to meet that expenditure.
(3) When search of the records of a District Registrar or a Sub-Registrar is to be made by the Bank to verify that the security offered is free from encumbrance, the applicant for loan shall bear the cost incidental to the search and shall deposit with the Bank a sum estimated by it to be necessary to meet the expenditure.
(4) Where an applicant fails to pursue his application or to avail himself of the loan applied for after any expenditure has been incurred by the Bank on the investigation of facts or title relating to his application, the applicant shall be liable to pay to the Bank the whole of the amount of such expenditure as determined by the Bank whether a deed has or has not been executed as respects such loan ; but where the applicant fails to avail himself of a part of the sanctioned loan within the time specified by the Bank, he shall be liable to pay only so much of the said expenditure as is proportionate to the unavailed of part of the sanctioned loan ; provided that the Chairman may for reasons to be recorded in writing waive the recovery of an amount or part thereof payable under this clause.
17. Interests, fees, commission and incidentals.(1) Loans shall be granted by the Bank at such rate or rates of interest as the Board may from time to time specify.
(2) In specifying the rate or rates of interest under sub-rule (1), the Board may also specify a higher rate of interest which the Bank shall charge in the event of default of re-payment of loan or any instalment thereof, not being a default due to any natural calamity.
(3) In addition to interest, the Bank may also charge such commission and incidental charges as the Board may from time to time specify.
18. Conditions for grant of loan to Directors, members, employees and their relatives.(1) No Director, member of any committee or sub-committee; member of the Regional Advisory Committee or an adviser appointed as such and no Bank employee shall deal with, judge or vote on any matter connected with any business the Bank in which he or any of his relative is personally concerned, or on any application for grant of loan to himself, his partner, co-trustee or relative or to a co-operative society, body corporate or individual, with which or with whom such Director, member, adviser or employee is connected as a partner, director, manager or servant.
(2) When an application for loan is received for action by any employee of the Bank in which he or any of his relatives is personally concerned, he shall immediately bring the fact to the notice of his immediate higher officer, who unless there is some special reason, will transfer the application to another employee.
(3) No officer shall investigate the facts of any application for loan, in which he or any of his relatives is personally concerned or verify the right, title or interest of the borrower in the property offered security for such loan.
(4) No Branch Manager shall sanction any loan in which he or any of his relatives is personally concerned but shall refer the application for loan to the Chief Regional Manager for disposal.
(5) No Chief Regional Manager shall sanction any loan in which he or any of his relatives is personally concerned but shall refer the application to the Head Office of the Bank.
(6) No officer in the Head Office of the Bank shall sanction any loan in which he or any of his relatives is personally concerned.
(7) An application for loan in which the Chairman or any of his relatives is personally concerned shall be referred to the Board, irrespective of the fact that the amount of the loan applied for is within the sanctioning power of the Chairman.
(8) In the case of an application which is submitted to the Executive Committee or the Board, any member of Director, if he or any of his relatives is personally concerned in the loan shall, immediately on receipt of the notice of consideration of the application in a meeting of the Committee or the Board, notify to the Bank and shall abstain from taking part in the meetings of the Executive Committee or the Board as provided in sub-rule (1).
Explanation.In this rule, the word `relative' with reference to any person means his son, daughter, husband, wife, father, mother, brother, sister, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in‑law or sister-in-law.
19. Taking over the management of the defaulting concern.Where the Chairman is satisfied that a borrower who is under a liability to the Bank under an agreement has made any default in re-payment or has otherwise failed to comply with the terms of the agreement, the Chairmen through any person authorised by him in this behalf, may give notice to such borrower to re-pay the balance of the loan in full or, as the case may be, comply with the terms of the agreement within three days next after the receipt of the notice, and if the borrower fails to comply with the said notice, the Chairman or any person authorised by him in this behalf, may by further notice require the borrower to hand over the management of the concern to an officer authorised by the Bank.
20. Legal proceedings against defaulting concerns.If any borrower refuses or fails to hand over the management of the concern on receipt of notice under rule 19, an officer of the Bank duly authorised by the Chairman in this behalf may apply to the competent Court for necessary orders as regards handing over of the management of the concern to the Bank.
21. Management of concern taken over.-(1) Where the management of the concern is taken over by the Bank, the Bank shall prescribe the manner in which affairs of that concern shall be managed taking into consideration the particular circumstances of the concern in each case.
(2) For the purpose of administering the affairs of a concern the management of which is taken over by the Bank, the Bank may appoint a Managing Director, Managing Agents, a Director-in-charge, or a Committee composed of more than one person and may lay down such conditions as it thinks fit taking into consideration the public interest and the interest of the Bank.
(3) The management appointed under sub-rule (2) shall, if the Bank thinks fit in the public interest to do so and provided always that the concern's liability to the Bank remains intact and is fully secured, strive as far as possible to ensure the continued existence of the concern ; and for this purpose, as also for effecting the recovery of its dues against the borrower including interest and expenses, the Bank may direct the said management to introduce such changes in regard to matters connected with the working of the concern including establishment, administration, production and sale as it may think proper.
The Bank may relinquish the management of the concern if it is satisfied that the cause for taking over the management no longer exists.
CHAPTER IV.POWERS OF THE EXECUTIVE COMMITTEE
AND THE CHAIRMAN
22. Powers of the Executive Committee.The Executive Committee shall have power,---
(a) to sanction, in any one case non-recurring expenditure up to Rs. 50,000 and recurring expenditure up to Rs. 20,000 a year within the sanctioned budget.
(b) to write off losses, including those pertaining to irrecoverable loans and interest thereon up to Rs. 10,000 in any one case.
(c) to finally sanction loan up to a maximum of five lakhs of rupees irrespective of the amount of loan applied for, subject to such directions as may be issued by the Board.
23. Powers of the Chairman:-------The Chairman shall have the powers:---
(a) of a Head of the Department, with reference to such rules in force in the Ministries and Departments of the Central Government as are adopted by the Bank;
(b) to appoint officers on the recommendations of the Selection Board appointed by the Board in pursuance of the regulations made under the Ordinance and such other powers in respect of officers and staff of the Bank, as have been delegated under the Agricultural Development Bank (Staff) Service Regulations, 1961:---
Provided that no appointment to a post higher than that of a Branch Manager shall be made without the approval of the Board, and no reference to the Selection Board shall be necessary for employing persons on deputation from Government offices, local bodies or semi-government institutions or re-employing retired Government servants;
(c) to deal finally with all cases of promotion to Class I posts up to and including the post of Branch Manager;
(d) to create within the budget grant posts of any class other than Class I;
(e) subject to availability of funds, to create posts of any class other than Class I in excess of budget provision for a period of not more than six months;
(f) subject to such directions as may, from time to time, be given by the Board, to sanction loans:---
(i) up to a maximum of two lakhs of rupees in the case of individuals, irrespective of the amount of loan applied for, subject to all cases above one lakh of rupees being reported to the Executive Committee;
(ii) up to maximum of five lakhs of rupees to corporate bodies subject to all cases above three lakhs of rupees being placed before the Executive Committee for ex-post-facto approval;
(iii) to individuals and corporate bodies in exercise of full powers of the Executive Committee and the Board, when prior reference to the Board is for reasons to be recorded in writing, likely to cause delay or to be prejudicial to the development of agriculture, provided that all such cases shall be reported to the Board in its next meeting;
(g) to sanction in any one case non-recurring expenditure up to Rs. 20,000 and recurring expenditure up to Rs. 5,000 a year within the sanctioned budget;
(h) to write off losses other than those due to non-recovery of loans up to Rs. 5,000 in any one case; portion of the security.
(i) to release on the request of the borrower, any portion of the security on the basis of which the Executive Committee or the Board has sanctioned a loan or loans, provided that the value of the reduced security is considered by him sufficient to cover the loan under rule 14;
(j) to fix the period of re-payment of loans sanctioned by the Board or the Executive Committee unless the Board or the Executive Committee has itself fixed such period in any particular case and in suitable cases, on a representation of the borrower, alter the period or the number of instalments in which such loan is re-payable;
(k) in suitable cases to increase the amount of loan sanctioned by the Board or the Executive Committee by an amount not exceeding twenty per cent. of the amount of loan so sanctioned, provided that the security offered by the borrower is sufficient to cover such additional amount;
(l) in suitable cases to alter on the request of the borrower Commit purpose for which any part of the loan sanctioned by the Executive Committee or the Board may be utilized;
(m) where under any agreement a higher rate of interest is chargeable in the event of default of re-payment of loan or any instalment thereof, to determine that such default has or has not been due to natural calamity;
(n) to appoint for a Branch of the Bank a local Technical Advisory Committee consisting, in each case, of one representative of each of the District Registrar Co-operative Societies, Director of Agriculture, Chief Engineer of Irrigation, National Bank of Pakistan, Director of Fisheries and Director of Animal Husbandry;
(o) to appoint honorary advisers and to grant honorarium in suitable cases to such advisers;
(p) to lay down the duties and administrative and financial powers of the officers and employees of the Bank;
(q) to delegate by order in writing any of his own powers of sanction under these rules to any officer of the Bank for such period, to such extent and subject to such conditions as may be specified in the order, except that any delegation of powers to the General Manager shall be with the approval of the Board of Directors;
(r) to order recovery, from the pay of any employee the whole or part of any loss or damage caused to the Bank by his negligence or default after giving him a chance to show cause why such recovery should not be made.
24. ReturnsThe audited statement of assets and liabilities required to be submitted to the Central Government, within four months of close of each of financial year under subsection (1) of section 29 shall be in the form set out in Schedule "A" annexed hereto.
CHAPTER V.-DISQUALIFICATION AND RESIGNATION OF DIRECTORS
25. Vacation of office by a Director on disqualification.lf at any time it comes to the notice of the Board that any of the Directors is or has become disqualified on any of the grounds specified in section 13, the Board shall forthwith inform the Central Government of the nature of the disqualification, and the Central Government shall, if it is satisfied that the Director concerned is or has actually become so disqualified, declare him to be disqualified by a notification in the official Gazette, and upon the publication of such notification the office of the Director shall become vacant.
26. Resignation by a Director.A Director may, by writing under his hand addressed to the Secretary to the Ministry of Finance, resign his office, but he shall not cease to be a Director or relinquish his office until the acceptance of his resignation by the Central Government is communicated to him in writing.
CHAPTER VI.-FEES AND ALLOWANCES
27. Fees of non-official Directors for attending meetings.For attending meetings of the Board or of the Executive Committee a non-official Director shall be entitled to receive fees at the following rates, namely:---
For attending a session of the Board ... ... 100.00
For attending a session of the Executive Committee ... 50.00
Explanation.For the purposes of these rules a session means one or more meetings held for transacting the business for which the Directors have been called to meet or any business added thereto with the permission of the Chairman, and a session may extend to any number of days.
28. Scale of traveling allowance and daily allowance admissible to non-official Directors.(1) For attending the meetings of the Board of Executive Committee and for other journeys performed in connection with other business of the Bank travelling allowance and daily allowance shall be admissible to non-official Directors at the following rates:---
(a) Travelling Allowance.(i) Steamer fare of the highest class or first class air fare or first class rail fare (with air-conditioning charges if actually incurred), and in addition thereto rupees forty per day for the period of journey for which purpose the day of departure and the day of arrival shall each be reckoned as half-day ;
(ii) in respect of road journeys performed between places not connected by railway, mileage allowance at the rate of 50 paisa shall be paid for each mile travelled in excess of the limit of 80 miles on any one day.
Explanation.For the purpose of this rule journey by road includes journey by sea or river in a steam-launch or any vessel other than a steamer and travelling by canal.
(b) Daily Allowance.(i) Daily allowance shall be admissible at the rate of forty rupees per day beginning from the day of the first meeting up to and including the day of the last meeting in a session.
(ii) daily allowance for not more than three days for the period of halt at the place of meeting, both before and after the commencement of the session, if such halt is necessitated by some unavoidable cause.
(2) When journey is performed between places connected by rail other-wise than by railway, travelling allowance and daily allowance shall be limited as if the journey had been performed by rail.
(3) When a Director travels from a station other than his place of permanent residence for the purpose of attending a meeting of the Board or Executive Committee he shall be entitled to travelling allowance and daily allowance at the aforesaid rates in respect of the journey actually performed by him subject to the limit of the travelling allowance admissible to him from the place of his permanent residence to the place of meeting.
29. Fees and allowances of the members of certain Committees.(1) A member of the Regional Advisory Committee, the Technical Advisory Committee or any ad-hoc Committee (other than the Chairman, a salaried officer of the Government, the State Bank of Pakistan or the National Bank of Pakistan or a foreign expert) shall receive a fee of Rs. 50 for each session of the Committee attended by him.
(2) There shall also be paid to such member a daily allowance of Rs. 25 and the travelling expenses at the scale and subject to conditions laid down in the Rules.
[No. 1 (2) Inv. III/61.]
[For Schedule please see Gazette of Pakistan, Part I, dated 1st
September 1961, page 317 etc.]