4. Establishment of Board .-(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established a Board to be known as the "Board for Industrial and Financial Reconstruction" to exercise the jurisdiction and powers and discharge the functions and duties conferred or imposed on the Board by or under this Act.
(2)
The Board shall consist of a Chairman and not less than two and not more than fourteen other Members, to be appointed by the Central Government.
(3)
The Chairman and other Members of the Board shall be persons who are or have been or are qualified to be High Court Judges, or persons of ability, integrity and standing who have special knowledge of, and professional experience of not less than fifteen years in science, technology, economics, banking industry, law, labour matters, industrial finance, industrial management, industrial reconstruction administration, investment accountancy, marketing or any other matter, the special knowledge of, or professional experience in which, would be in the opinion of the Central Government be useful to the Board.
5. Constitution of Appellate Authority .-(1) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, an Appellate Authority to be called the "Appellate Authority for Industrial and Financial Reconstruction" consisting of a Chairman and not more than three other Members, to be appointed by that Government, for hearing appeals against the orders of the Board under this Act.
(2)
The Chairman shall be a person who is or has been a Judge of the Supreme Court or who is or has been a Judge of a High Court for not less than five years.
(3)
A Member of the Appellate Authority shall be a person who is or has been a Judge of a High Court or who is or has been an officer not below the rank of a Secretary to the Government of India or who is or has been a Member of the Board for not less than three years.
6. Term of office, conditions of service, etc., of Chairman and other Members .-(1) Before appointing any person as the Chairman or other Member, the Central Government shall satisfy itself that the person does not and will not, have any such financial or other interest as is likely to affect prejudicially his functions as such Member.
(2)
The Chairman and every other Member shall hold office for such period, not exceeding five years, as may be specified by the Central Government in the order of his appointment, but shall be eligible for re-appointment:
Provided that no person shall hold office as the Chairman or other Member after he has attained the age of sixty-five years.
(3)
Notwithstanding anything contained in sub-section (1), a Member may-
(a)
by writing under his hand and addressed to the Central Government resign his office at any time;
(b)
be removed from his office in accordance with the provisions of section 7.
(4)
A vacancy caused by the resignation or removal of the Chairman or any other Member under sub-section (3) or otherwise shall be filled by fresh appointment.
(5)
In the event of the occurrence of a vacancy in the office of the Chairman by reason of his death, resignation or otherwise, such one of the Members as the Central Government may, by notification, authorise in this behalf shall act as the Chairman till the date on which a new Chairman, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.
(6)
When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, such one of the Members as the Chairman may authorise in writing in this behalf, shall discharge the functions of the Chairman, till the date on which the Chairman resumes his duties.
(7)
The salaries and allowances payable to and the other terms and conditions of service of the Chairman and other Members shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairman or any other Member shall be varied to his disadvantage after his appointment.
(8)
The Chairman and every other Member shall, before entering upon his office, make a declaration of fidelity and secrecy in the form set out in the Schedule.
(9)
The Chairman or any other Member ceasing to hold office as such shall not hold any appointment or be connected with the management or administration in any company in relation to which any matter has been the subject-matter of consideration before the Board or, as the case may be, the Appellate Authority, for a period of five years from the date on which he ceases to hold such office.
7. Removal of Members from office in certain circumstances .-(1) The Central Government may remove from office any Member, who-
(a)
has been adjudged as insolvent, or
(b)
has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude, or
(c)
has become physically or mentally incapable of acting as a Member, or
(d)
has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member, or
(e)
has so abused his position as to render his continuance in office prejudicial to the public interest.
(2)
Notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the ground specified in clause (d) or clause (e) of that sub-section unless the Supreme Court on a reference being made to it in this behalf by the Central Government, has, on an inquiry held by it in accordance with such procedure as it may specify in this behalf, reported that the Member ought, on such grounds, to be removed.
8. Secretary, officers and other employees of Board or Appellate Authority .-(1) The Central Government shall appoint a Secretary to the Board and a Secretary (by whatever name called) to the Appellate Authority to exercise and perform, under the control of the Chairman, such powers and duties as may be prescribed or as may be specified by the Chairman.
(2)
[ The Central Government may provide the Board and the Appellate Authority with such other officers and employees as may be necessary for the efficient performance of the functions of the Board and the Appellate Authority.]
(3)
The salaries and allowances payable to and the conditions of service of the Secretary and other officers and employees of the Board and the Appellate Authority shall be such as may be prescribed:
Provided that such Secretary, officer or other employee shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.
9. Salaries, etc., be defrayed out of the Consolidated Fund of India .-The salaries and allowances payable to the Members and the administrative expenses, including salaries, allowances and pension, payable to or in respect of the officers and other employees of the Board and the Appellate Authority shall be defrayed out of the Consolidated Fund of India.
10. Vacancies, etc., not to invalidate proceedings of Board and Appellate Authority .-No act or proceeding of the Board or, as the case may be, the Appellate Authority shall be questioned on the ground merely of the existence of any vacancy or defect in the constitution of the Board or the Appellate Authority or any defect in the appointment of a person acting as a Member of the Board or the Appellate Authority.
11. Members and staff of Board and Appellate Authority to be public servants .-The Chairman and other Members and the officers and other employees of the Board and the Appellate Authority shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
12. Constitution of Benches of Board or Appellate Authority .-(1) The jurisdiction, powers and authority of the Board or the Appellate Authority may be exercised by Benches thereof.
(2)
The Benches shall be constituted by the Chairman and each Bench shall consist of not less than two Members.
(3)
[ If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference to the Chairman of the Board or, as the case may be, the Appellate Authority who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members and such point or points shall be decided according to the opinion of the majority of the Members who have heard the case including those who first heard it.]
13. Procedure of Board and Appellate Authority .-(1) Subject to the provisions of this Act, the Board or, as the case may be, the Appellate Authority, shall have powers to regulate-
(a)
the procedure and conduct of the business;
(b)
the procedure of the Benches, including the places at which the sittings of the Benches shall be held;
(c)
the delegation to one or more Members of such powers or functions as the Board or, as the case may be, the Appellate Authority may specify.
(2)
In particular and without prejudice to the generality of the foregoing provisions, the powers of the Board or, as the case may be, the Appellate Authority, shall include the power to determine the extent to which persons interested or claiming to be interested in the subject-matter of any proceeding before it may be allowed to be present or to be heard, either by themselves or by their representatives or to cross-examine witnesses or otherwise to take part in the proceedings.
(3)
The Board or the Appellate Authority shall, for the purposes of any inquiry or for any other purpose under this Act, have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying suits in respect of the following matters, namely:-
(a)
the summoning and enforcing the attendance of any witness and examining him on oath;
(b)
the discovery and production of document or other material object producible as evidence;
(c)
the reception of evidence on affidavit;
(d)
the requisitioning of any public record from any Court or office;
(e)
the issuing of any commission for the examination of witnesses;
(f)
any other matter which may be prescribed.
14. Proceedings before Board or Appellate Authority to be judicial proceedings .-The Board or the Appellate Authority shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974) and every proceeding before the Board or the Appellate Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860).