36. Vacancies, etc., not to invalidate acts or proceedings of Food Corporation, etc.—(1) No act or
proceeding of a Food Corporation or a committee thereof or a Board of Management shall be invalid by
reason only of the existence of any vacancy in, or any defect in the constitution of, the board of directors
of the Food Corporation or such Committee or Board of Management.
(2) No act done by any person acting in good faith as a member of a board of directors of a Food
Corporation or of a Board of Management shall be deemed to be invalid by reason only of his
disqualification for being appointed as, or for being, a member of such board of directors or Board of
Management.
37. Delegation.—A Food Corporation may, by general or special order in writing, delegate to the
Chairman or any other member of the board of directors or the Secretary or other officer of the
Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of
its powers and functions under this Act as it may deem necessary.
38. Declaration of fidelity and secrecy.—Every director, member of an Advisory Committee or
other committee, auditor, officer or other employee of a Food Corporation and every member of a Board
of Management and its staff shall, before entering upon his duties, make a declaration of fidelity and
secrecy in the form set out in the Schedule.
39. Indemnity of directors.—(1) Every member of the board of directors of a Food Corporation and
of a Board of Management shall be indemnified by the Corporation against all losses and expenses
incurred by him in the discharge of his duties except such as are caused by his own wilful act or default.
(2) A member of the board of directors of a Food Corporation or a Board of Management shall not be
responsible for any other member or for any officer or other employee of the Corporation or Board of
Management or for any loss or expense resulting to the Corporation from the insufficiency or deficiency
of value of, or title to, any property or security acquired or taken on behalf of the Corporation in good
faith, or by the insolvency or wrongful act of any person under obligation to the Corporation or by
anything done in good faith, in the execution of the duties of his office or in relation thereto.
40. Protection of action taken under this Act.—No suit or other legal proceeding shall lie against a
Food Corporation or any member of the board of directors thereof or any officer or other employee
thereof or any member of a Board of Management or its staff or any other person authorised by a Food
Corporation or a Board of Management to discharge any functions under this Act for any loss or 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.
41. [Offences.] Omitted by the Jan Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023), s. 2
and Schedule (w.e.f. 07-05-2024).
42. Provision relating to income-tax, super-tax, etc.—For the purposes of the Income-tax Act,
1961 (43 of 1961), or any other enactment for the time being in force relating to income-tax,
super-tax or any other tax on income, profits or gains, a Food Corporation shall be deemed to be a
company within the meaning of the Income-tax Act, 1961, and shall be liable to tax accordingly on its
income, profits and gains.
1. Ins. by Act 67 of 1972, s. 7 (w.e.f. 15-12-1972).
16
43. Winding up of Food Corporation.—No provision of law relating to the winding up of
companies or corporations shall apply to a Food Corporation and it shall not be placed in liquidation save
by order of the Central Government and in such manner as that Government may direct.
44. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules to carry out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing power, such rule may provide for—
(a) the term of office of, and the manner of filling casual vacancies among, and the other terms
and conditions of appointment of, the directors of the Corporation;
(b) the composition of Advisory Committees and the terms and conditions of service of members
thereof;
(c) the additional functions which the Corporation may perform;
(d) the remuneration or fees payable to the members of the board of directors of a State Food
Corporation and the term of office of, and the manner of filling casual vacancies among, such
members;
(e) the securities (other than food grains) upon which a Food Corporation may lend or advance
money;
(f) the manner in which a Food Corporation may invest its funds;
(g) the form of the annual statement of accounts and the balance sheet to be prepared by a Food
Corporation;
(h) any other matter which has to be or may by prescribed.
(3) Every rule made by the Central Government under this section shall be laid as soon as may be
after it is made, before each House of Parliament while it is in session for a total period of thirty
days1
[which may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid,] both Houses
agree in making any modification in the rule or both Houses agree that the rule should not be made, the
rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so
however that any such modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.
45. Power of Food Corporation to make regulations.—(1) A Food Corporation may, with the
previous sanction of the Central Government, by notification in the Official Gazette, make regulations not
inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is
necessary or expedient for the purpose of giving effect to the provisions of this Act.
2
[1A) The power to make regulations under this section shall include the power to give retrospective
effect from a date not earlier than the date of commencement of this Act, to the regulations or any of them
but no retrospective effect shall be given to any regulation so as to prejudicially affect the interests of any
person to whom such regulation may be applicable.]
(2) Without prejudice to the generality of the foregoing power, such regulation may provide for—
(a) the methods of appointment, the conditions of service and the scales of pay of the officers and
employees of a Food Corporation, other than the Secretary of the Food Corporation of India;
(b) the duties and conduct of officers and employees of a Food Corporation, other than the
Secretary aforesaid;
1. Subs. by Act 53 of 1982, s. 3, for certain words (w.e.f. 21-10-1982).
2. Ins. by s. 4, ibid. (w.e.f. 21-10-1982).
17
(c) the functions and duties which may be entrusted or delegated to the managing director or, as
the case may be, the General Manager, or a Food Corporation:
(d) the times and places at which meetings of a Food Corporation or any committee thereof shall
be held and the procedure to be followed thereat;
(e) the fees and allowances payable to the members of a committee under sub-section (6) of
section 14 or sub-section (6) of section 24;
(f) generally, the efficient conduct of the affairs of a Food Corporation.
(3) The Central Government may, by notification in the Official Gazette, rescind any regulation
which it has sanctioned and thereupon such regulation shall cease to have effect.
(4) Any regulation which may be made by the Food Corporation of India under this Act may be made
by the Central Government within three months from the establishment of that Corporation and any
regulation which may be made by a State Food Corporation under this Act may be made by the Food
Corporation of India within three months from the establishment of such State Food Corporation; and any
regulation so made may be altered or rescinded by the Food Corporation concerned in the exercise of its
powers under this Act.
1
[(5) Every regulation made under this Act shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which maybe comprised
in one session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any modification
in the regulation or both Houses agree that the regulation should not be made, the regulation 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 regulation.]
2
[46. Validation.—No regulation made or purporting to have been made with retrospective effect,
under section 45 before the commencement of the Food Corporations (Amendment) Act, 1982 (53 of
1982) shall be deemed to be invalid or ever to have been invalid merely on the ground that such
regulation was made with retrospective effect and accordingly every such regulation and any action taken
or thing done thereunder shall be as valid and effective as if the provisions of section 45, as amended by
the Food Corporations (Amendment) Act, 1982 were in force at all material times when such regulation
was made or action or thing was taken or done.]