32. Defects in appointments not to invalidate acts, etc., of Board.—No act or proceeding of the
Board or of any committee of the National Dairy Development Board shall be questioned on the ground
merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as
the case may be.
33. Protection of acts done in good faith.—No suit or other legal proceeding shall lie against the
National Dairy Development Board or any director or any officer or other employee of the Board or any
other person authorised by the Board 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 or of any other law or provision having the force of law.
34. Indemnity of directors.—Every director shall be indemnified by the National Dairy
Development Board against all losses and expenses incurred by him, in, or in relation to, the discharge of
his duties, except such as are caused by his own wilful act or default.
35. Obligation as to fidelity and secrecy.—(1) The Board shall not, except as otherwise required by
this Act or any other law, divulge any information relating to, or to the affairs of, the National Dairy
Development Board or of the society or of the dissolved company except in circumstances in which it is
in accordance with the law or practice and usage customary among financial institutions, necessary or
appropriate for the Board to divulge such information.
(2) Every director, member of a committee, auditor or officer or other employee of the National Dairy
Development Board shall, before entering upon his duties, make a declaration of fidelity and secrecy in
the form set out in the Schedule.
36. Recruitment of additional officers and other employees.—Nothing contained in Chapter V
shall be deemed to prejudice the right of the National Dairy Development Board to create such number of
additional posts or to appoint such number of additional officers or other employees as it may consider
necessary or desirable for the efficient discharge of the functions of the National Dairy Development
Board and where any such officer or other employee is appointed, the terms and conditions of service,
including inter se seniority, may also be determined by the Board.
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37. Liquidation only under orders of Central Government.—No provision of any law relating to
the winding up of companies or corporations shall apply to the National Dairy Development Board and it
shall not be placed in liquidation save by an order of the Central Government and in such manner as it
may direct.
38. Delegation of certain powers by Central Government.—(1) The Central Government may, on
the recommendation of the National Dairy Development Board, if satisfied that it is necessary so to do in
the public interest, make any scheme for the purpose of enabling the National Dairy Development Board
to undertake and perform any of the activities or functions of the Central Government relatable to dairy,
foodstuffs and connected industries, particularly with reference to matters related to the development of
the national milk grid by the regulation of the production, procurement, marketing, export-import,
maintenance of standards or such like activities (including the collection and compilation of statistics and
relevant data).
(2) Every scheme made under sub-section (1) shall be published in the Official Gazette and may
contain such conditions, restrictions or limitations as the Central Government may deem fit to impose.
39. Transitional provisions for auditors.—Any auditor appointed in relation to the society or the
dissolved company, functioning immediately before the appointed day, may, notwithstanding anything
contained in this Act, be continued by the National Dairy Development Board for such period and on
such terms as may be considered necessary.
40. Transitional provisions with regard to Chairman and Board.—The Chairman of the society,
holding office immediately before the appointed day, shall be the Chairman of the National Dairy
Development Board until a Chairman is nominated in accordance with the provisions of this Act and he
shall be competent to perform the functions of the Board until the constitution of the Board under this
Act.
41. Management or assistance to others to continue.—For the removal of doubts, it is hereby
declared that where, before the appointed day, either the society or the dissolved company was managing
any other organisation or rendering any technical or other assistance to any organisation or person, the
National Dairy Development Board may continue to render the same or similar service to such extent, for
such period and with such modifications as the Board may deem fit.
42. Mother Dairy to be a subsidiary unit of National Dairy Development Board.—The
undertaking known as the Mother Dairy, Delhi, shall, on and from the appointed day, become a
subsidiary unit of the National Dairy Development Board but shall retain its separate character, unless
otherwise decided by the Board.
43. Formation of companies with previous approval of Central Government.—(1) Where the
Board considers it necessary so to do, for the implementation of any of its objectives, it may, subject to
the previous approval of the Central Government form one or more companies either by itself or in
conjunction with any of its subsidiaries or with any other undertaking.
(2) Where any company has been formed in pursuance of sub-section (1),—
(a) in the case of a company formed by the Board by itself or along with its subsidiaries, it may
contribute such capital, transfer such of its assets or render such assistance, as may be required, so as
to enable the company so formed to function; and
(b) in any other case, it may contribute capital, transfer assets or render assistance in such manner
and to such extent as the Board may deem fit subject to specific previous approval of the Central
Government in that regard.
44. [Exemption from tax on income] Omitted by Act 20 of 2002 (20 of 2002) s.162
(w.e.f. 1-4-2003).
45. Returns.—The National Dairy Development Board shall furnish, from time to time, to the
Central Government such returns as the Central Government may require.
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46. Power to make schemes and regulations regarding service matters retrospectively.—Any
scheme or regulation made under this Act in relation to conditions of service or like matters of officers or
other employees of the National Dairy Development Board, may be made retrospectively from any date
not earlier than the appointed day.
47. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in the Companies Act, the Industrial Disputes
Act, 1947 (14 of 1947) or 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 other authority.
48. Power to make regulations.—(1) The Board may, by notification in the Gazette of India, make
regulations not inconsistent with the provisions of this Act and the schemes 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) In particular, and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely:—
(a) the procedure to be followed for the transaction of business at the meetings of the Board and
the number of members which shall form quorum at a meeting under sub-section (1) of section 10;
(b) the allowances to be paid to the members of any management committee, other than the
Chairman and whole-time directors, for attending the meetings of the management committee or for
attending to any other work of the National Dairy Development Board under sub-section (1) of
section 13 and the other matters pertaining to the conduct of proceedings of the management
committees under sub-section (2) of that section;
(c) the higher grade for the purposes of clause (a) of section 15;
(d) the particulars of the steps for the advancement of the health, education or other interests of
the officers and other employees or their families as referred to in sub-section (4) of section 22;
(e) the matters of detail regarding establishment or maintenance of funds referred to in
sub-section (5) of section 22;
(f) the conditions subject to which sums of money are to be deposited under sub-section (2) of
section 26;
(g) the form and manner in which the balance-sheet and accounts of the National Dairy
Development Board shall be prepared under sub-section (1) of section 27;
(h) the procedure for making an application under sub-section (1) of section 31 and for the
disposal thereof under sub-section (2) of that section;
(i) conditions of service of officers and other employees;
(j) any other matter which is to be, or may be, prescribed.
49. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions
not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no such order shall be made after the expiry of five years from the appointed day.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
50. Schemes and regulations to be laid before Parliament.—Every scheme and 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 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 scheme or
regulation or both Houses agree that the scheme or regulation should not be made, the scheme or
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 scheme or regulation.