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THE ARBITRATION AND CONCILIATION ACT, 1996 ACT No. 26 OF 1996 [16th Augus t, 1996 .] An Act to consolidate and amend the law relating to domestic arbitration, intern ational commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto. Preamble .WHEREAS the United Nations Commission on International Trade L aw (UNCITRAL) has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985; ANDWHEREAS the General Assembly of the United Nations has recommended that all countries give due consideration to the said Model Law, in view of the desirabi lity of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice; ANDWHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980; ANDWHEREAS the General Assembly of the United Nations has recommended the use of the said Rules in cases where a dispute arises in the context of international commercial relations and the parties seek an amicable settlement of that dispute by recourse to conciliation; ANDWHEREAS the said Model Law and Rules make significant contribution to the establishment of a unified legal framework for the fair and efficient settlement of disputes arising in international commercial relations; ANDWHEREAS it is expedient to make law respecting arbitration and conciliation , taking into account the aforesaid Model Law and Rules; BE it enacted by Parliament in the Forty -seventh Year of th e Republic of India as follows: PRELIMINARY 1. Short title, extent and commencement. (1) This Act may be called the Arbitration and Concili ation Act, 1996. (2) It extends to the whole of India: 1* * * * * (3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint. PART I ARBITRATION CHAPTER I General provisions 2. Definit ions. (1) In this Part, unless the context otherwise requires, (a) arbitration means any arbitration whether or not administered by permanent arbitral institution; (b) arbitration agreement means an agreement referred to in section 7; 1. The proviso and Explanation omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide notification No. S.O. 1123(E) dated (18 -3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23 -10-2020). 2. 22nd August, 1996, vide notificat ion No. G.S.R 375(E), dated 22nd August, 1996, see Gazette of Indi a, Extraordinary, Part II, sec. 3 (i). 6 (c) arbitral award includes an interim award; (d) arbitral tribunal means a sole arbitrator or a panel of arbitrators; 1[(e) Court means (i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject -matter of the arbitration if the same had been the subject -matter of a suit, but do es not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes; (ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdi ction to decide the questions forming the subject -matter of the arbitration if the same had been the subject -matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court; ] (f) international commercial arbitration means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the par ties is (i) an indiv idual who is a national of, or habitually resident in, any country other than India; or (ii) a body corporate which is incorpo rated in any country other than India; or (iii) 2*** an association or a body of individuals whose central management and control is exercised in any country other than India; or (iv) the Government of a foreign country; (g) legal repres entative means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the dece ased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting; (h) party means a party to an arbitration agreement. (2) This Part shall apply where the p lace of arbitration is in I ndia: 3[Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause ( a) of sub -section ( 1) and sub -section ( 3) of section37 shall also apply to international commercial arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act. ] (3) This Part shall not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration. (4) This Part except sub -section ( 1) of section 40, sections 41 and 43 shall apply to every arbitration under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration agreem ent and as if that other enactment were an arbitration agreement, except in so far as the provision s of this Part are inconsistent with that other enactment or with any rules made thereunder. (5) Subject to the provisions of sub -section ( 4), and save in so far as is otherwise provided by any law for the time being in force or in any agreement in force between India and any other country or countries, this Part shall apply to all arbitrations and to all proceedings relating thereto. (6) Where this Part, exce pt section 28, leaves the parties free to determine a certain issue, that freedom shall include the right of the parties to authorise any person including an institution, to determine that issue. 1. Subs. by Act 3 of 2016, s. 2, for clause ( e) (w.e.f. 23 -10-2015). 2. The words a company or omitted by s. 2 , ibid. (w.e.f. 23 -10-2015). 3. Ins. by s. 2, ibid. (w.e. f. 23 -10-2015). 7 (7) An arbitral award made under this Part shall be consider ed as a domestic award. (8) Where this Part (a) refers to the fact that the parties have agreed or that they may agree, or (b) in any other way refers to an agreement of the parties, that agreement shall include any arbitration rules referred to in that a greement. (9) Where this Part, other than clause ( a) of section 25 or clause ( a) of sub -section ( 2) of section 32, refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterc laim. 3. Receipt of written communications .(1) Unless otherwise agreed by th e parties , (a) any written communication is deemed to have been received if it is delivered to the addressee personally or at his place of business, habitual residence or mailing address, and (b) if none of the places referred to in clause ( a) can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last known place of business, habitual residence or m ailing address by registered letter or by any other means which provides a record of the attempt to deliver it. (2) The communication is deemed to have been received on the day it is so delivered. (3) This section does not apply to written communications i n respect of proceedings of any judicial authority. 4.Waiver of right to object. A party who knows that (a) any provision of this Part from which the parties may derogate, or (b) any requirement under the arbitration agreement, has not been complied with and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time limit is provided for stating that objection, within that period of time, shall be deemed to have waived his right to so object. 5.Extent of judicial intervention .Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part. 6.Administrative assistance .In order to facilitate the conduct of the arbitral proceedings, the parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. CHAPTER II Arbitration agreement 7. Arbitrat ion agreement .(1) In this Part, arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is i n writing if it is contained in (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication 1[including communication through electronic me ans] which provide a record of the agreement ; or 1. Ins. by Act 3 of 2016, s. 3 (w. e. f. 23 -10-2015). 8 (c) an exchange of statements of claim and defen ce in which the existence of the agreement is alleged by one party and not denied by the other. (5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the refere nce is such as to make that arbitration clause part of the contract. 8.Power to refer parties to arbitration where there is an arbitration agreement .1[(1)A judicial authority, before which an action is brought in a matter which is the subject of an arbitr ation agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists. ] (2) The application referred to in sub -section ( 1) shall not be entertained unless it is accompanied by the o riginal arbitration agreement o r a duly certified copy thereof: 2[Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub -section ( 1), and the said a greement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement and a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court .] (3) Notwithstanding that an application has been made under sub -section ( 1) and that the issue is pending before the judicial authority, an arbitration may be commenced or conti nued and an arbitral award made. STATE AMENDMENT Jammu and Kashmir and Ladakh (UTs). Insertion of section 8A and section 8B. After section 8, insert the following sections, namely : 8A. Power of the court, seized of petitions under sections 9 or 11 of th e Act, to refer the dispute to Mediation or Conciliation. (1) If during the pendency of petitions under sections 9 or 11 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to, - (a) mediation; or (b) conciliation. (2) The procedure for reference of a dispute to media tion is as under (a) where a dispute has been referred for resolution by reco urse to mediation, the procedure framed under that Act shall apply; (b) in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated set tlement to the referral court; (c) on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal im pediment in accepting the same; (d) the court shall record a statement on oath of the parties, or their authorised representatives, affirming the mediated settlement as well as a clear undertaking of the parties to abide by the terms of the settlement; 1. Subs. by Act 3 of 2016, s. 4 , for sub -section ( 1) (w. e. f. 23 -10-2015). 2. Ins. by s. 4 , ibid. (w.e.f. 23 -10-2015). 9 (e) if satisfied, the court shall pass an order in terms of the settlement; (f) if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g) if the main petition, in which the reference w as made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h) such a mediated settlement, shall have the same status and effect as a n arbitral award and may be enforced in the manner specified under section 36 of the Act. (3) With respect to reference of a dispute to conciliation, the provisions of Part II of this Act shall apply as if the conciliation proceedings were initiated by the

to conciliation, the provisions of Part II of this Act shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act. 8B. Power of the court, seized of matters under sections 34 or 37 of the Act, to refer the dispute to Mediation or Conciliation .(1) If during the pendency of a petition under section 34 or an appeal under section 37 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to: (a) mediation; or (b) conciliation. (2) The procedure for reference of a dispute to mediation is as under: - (a) where a dispute has been referred for resolution by recourse to mediation, the procedure framed under the Act shall apply; (b) in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court; (c) on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settle ment is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same; (d) the court shall record a statement on oath of the parties, or their author ized representatives, affirming the mediated settlement, a clear undertaking of the parties to abide by the terms of the settlement as well as statement to the above effect; (e) if satisfied, the court shall pass an order in terms of the settlement; (f) if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g) if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be li sted before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h) such a mediated settlement, shall have the status of a modified arbitral award and may be enforced in the manner specified under section 36 of the A ct. (3) With respect to reference of a dispute to conciliation, the provisions of Part III of the Act, shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act. 10 [Vide the Jammu and Kashmir Reor ganization (Adaptation of Central Laws ) Order , 2020, notification No. S.O . 1123(E) dated (18 -3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O.3774(E), dated (23 -10-2020). ] 9.Interim me asures , etc., by Court. 1[(1)]A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court (i) for the appointment of a guardian for a mi nor or person of unsound mind for the purposes of arbitral proceedings; or (ii) for an interim measure of protection in respect of any of the following matters, namely: (a) the preservation, interim custody or sale of any goods which are the subject -matte r of the arbitration agreement; (b) securing the amount in dispute in the arbitration; (c) the detention, preservation or inspection of any property or thing which is the subject - matter of the dispute in arbitration, or as to which any question may arise t herein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party , or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary o r expedient for the purpose of obtaining full information or evidence; (d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it. 2[(2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub -section ( 1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine. (3) Once the arbitral tribunal has been constituted, the Court shall not entertain an applicatio n under sub-section ( 1), unless the Court finds that circumstances exist which may not render the remedy provided under section 17 efficacious.] CHAPTER III Composition of arbitral tribunal 10. Number of arbitrators. (1) The parties are free to determine t he number of arbitrators, provided that such number shall not be an even number. (2) Failing the determination referred to in sub -section ( 1), the arbitral tribunal shall consist of a sole arbitrator. 11. Appointment of arbitrators. (1) A person of any nat ionality may be an arbitrator, unless otherwise agreed by the parties. (2) Subject to sub -section ( 6), the parties are free to agree on a procedure for appointing the arbitrator or arbitrators. (3) Failing any agreement referred to in sub -section ( 2), in a n arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. (4) If the appointment procedure in sub -section ( 3) applies and (a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or 1. Section 9 shall be r enumbered as sub-section (1) thereof by s. 5, Act 3 of 2016 (w.e.f . 23-10-2015). 2. Ins. by s. 5, ibid. (w.e.f. 23 -10-2015). 11 (b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, the appointment shall be made, upon request of a party, by 1[the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court]; (5) Failing any agreement referred to in sub -section ( 2), in an arbitration with a so le arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made, upon request of a party, by 1[the Supreme Court or, as the case may be, the High Court or any person or instit ution designated by such Court]. (6) Where, under an appointment procedure agreed upon by the parties, (a) a party fails to act as required under that procedure; or (b) the parties, or the two appointed arbitrators, f ail to reach an agreement expected of them under that procedure; or (c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure, a party may request 1[the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court] to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment. 2[(6A) The Supreme Court or, as the case may be, the High Court, while considering any application under sub -section ( 4) or sub -section ( 5) or sub-section ( 6), shall, notwithstanding any judgment, decree or order of any Court, confine to the examination of the existence of an arbitration agreement. (6B) The designation of any person or institution by the Supreme Court or, as the case may be, the High Court, for the purposes of this section shall not be regarded as a delegation of judicial power by the Supreme Court or the High Court.] (7) A decision on a matter entruste d by sub -section ( 4) or sub -section ( 5) or sub -section ( 6) to 3[the Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court is final and no appeal including Letters Patent Appeal s hall lie against such dec ision ]. 4[(8) The Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court, before appointing an arbitrator, shall seek a disclosure in writing from the prospective arbitrator in terms of sub -section ( 1) of section 12, and have due regard to (a) any qualifications required for the arbitrator by the agreement of the parties; and (b) the contents of the disclosure and other considerations as are likely to secure the appointment of an independent and impartia l arbitrator .] (9) In the case of appointment of sole or third arbitrator in an international commercial arbitration, 5[the Supreme Court or the person or institution designated by that Court] may appoint an arbitrator of a nationality other than the natio nalities of the parties where the parties belong to different nationalities. 6[(10)The Supreme Court or, as the case may be, the High Court, may make such scheme as the said Court may deem appropriate for dealing with matters entrusted by sub -section ( 4) or sub -section ( 5) or sub-section ( 6), to it.] (11) Where more than one request has been made under sub -section ( 4) or sub -section ( 5) or sub - section ( 6) to the Chief Justices of different High Courts or their designates, 7[different High Courts or 1. Subs. by Act 3 of 2016, s. 6, for the Chief Justice or any person or institution designated by him (w. e. f. 23 -10-2015). 2. Ins. by s. 6, ibid. (w.e.f. 23-10-2015). 3. Subs. by s. 6, ibid., for the Chief Justice or the person or institution designated by him is final (w.e .f. 23-10-2015). 4. Subs. by Act 3 of 2016, s. 6 , for sub -section ( 8) (w.e.f .23-10-2015). 5. Subs. by s. 6, ibid., for the Chief Ju stice of India of India or the person or institution designated by him (w.e.f. 23 -10-2015). 6. Subs. by s. 6, ibid., for sub -section ( 10) (w.e.f. 23 -10-2015). 7. Subs. by s. 6, ibid., for the Ch ief Justices of different High C ourts or their designates, t he Chief Justice or his designate to whom the request has been first made (w.e.f 23 -10-2015). 12 their de signates, the High Court or its designate to whom the request has been first made] under the relevant sub -section shall alone be competent to decide on the request. 1[(12) (a) Where the matters referred to in sub -sections ( 4), (5), (6), (7), (8) and sub -section ( 10) arise in an international commercial arbitration, the reference to the Supreme Court or, as the case may be, the High Court in those sub -sections shall be construed as a reference to the Supreme Court; and (b) Where the matters referred to i n sub -sections ( 4), (5), (6), (7), (8) and sub -section ( 10) arise in any other arbitration, the reference to the Supreme Court or, as the case may be, the High Court in those sub-sections shall be construed as a reference to the High Court within whose local limits the principal Civil Court referred to in clause ( e) of sub -section ( 1) of section 2 is situate, and where the High Court itself is the Court referred to in that clause, to that High Court.] 2[(13) An application made under this section for ap pointment of an arbitrator or arbitrators shall be disposed of by the Supreme Court or the High Court or the person or institution designated by such Court, as the case maybe, as expeditiously as possible and an endeavour shall be made to dispose of the ma tter within a period of sixty days from the date of service of notice on the opposite party. (14) For the purpose of determination of the fees of the arbitral tribunal and the manner of its payment to the arbitral tribunal, the High Court may frame such r ules as may be necessary, after taking into consideration the rates specified in the Fourth Schedule. Explanation. For the removal of doubts, it is hereby clarified that this sub -section shall not apply to international commercial arbitration and in arbitr ations (other than international commercial arbitration) in case where parties have agreed for determinatio n of fees as per the rules of an arbitral institution.] 3[11A. Power of Central Government to amend Fourth Schedule. (1) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, amend the Fourth Schedule and thereupon the Fourth Schedule shall be deemed to have been amended accordingly. (2) A copy of every notification proposed to be issued under sub -section ( 1), shall be laid in draft 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 disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or , as the case may be, shall be issued only in such modified form as may be agreed upon by the both Houses of Parliament.] 12. Grounds for challenge .4[(1) When a person is approached in connection with his possible appointment as an arbitrator, he shall di sclose in writing any circumstances, (a) such as the existence either direct or indirect, of any past or present relationship with or interest in any of the parties or in relation to the subject -matter in dispute, whether financial, business, professional or other kind, which is likely to give rise to justifiable doubts as to his independence or impartiality; and (b) which are likely to affect his ability to devote sufficient time to the arbitration and in particular his ability to complete the entire arbi tration within a period of twelve months . Explanation 1.The grounds stated in the Fifth Schedule shall guide in determining whether circumstances exist which give rise to justifiable doubts as to the independence

stated in the Fifth Schedule shall guide in determining whether circumstances exist which give rise to justifiable doubts as to the independence or impartiality of an arbitrator. Explanati on 2.The disclosure shall be made by such person in the form specified in the Sixth Schedule.] (3) An arbitrator may be ch allenged only if 1. Subs. by Act 3 of 2016, s. 6, for sub -section ( 12) (w.e.f . 23-10-2015). 2. Ins. by s. 6, ibid.(w.e.f. 23 -10-2015). 3. Ins. by s. 7 , ibid. (w.e.f. 23 -10-2015) . 4. Subs. by s. 8 , ibid., for sub -section ( 1) (w.e.f . 23-10-2015). 13 (a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or (b) he does not possess the qualifications agreed to by the parties. (4) A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made. 1[(5) Notwiths tanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject -matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbi trator: Provided that parties may, subsequent to disputes having arisen between them, waive the applicability of this sub -section by an express agreement in writing. ] 13.Challenge procedure. (1) Subject to sub -section ( 4), the parties are free to agree on a procedure for challenging an arbitrator. (2) Failing any agreement referred to in sub -section ( 1), a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becom ing aware of any circumstances referred to in sub -section( 3) of section 12, send a written statement of the reasons for the challenge to the arbitral tribunal. (3) Unless the arbitrator challenged under sub -section ( 2) withdraws from his office or the othe r party agrees to the challenge, the arbitral tribunal shall decide on the challenge. (4) If a challenge under any procedure agreed upon by the parties or under the procedure under sub - section ( 2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award. (5) Where an arbitral award is made under sub -section ( 4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34. (6) Where an a rbitral award is set aside on an application made under sub -section ( 5), the Court may decide as to whether the arbitrator who is challenged is entitled to any fees. 14. Failure or impossibility to act .(1) 2[The mandate of an arbitrator shall terminate an d he shall be substituted by another arbitrator , if] (a) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay; and (b) he withdraws from his office or the parties agree to the termination of his mandate. (2) If a controversy remains concerning any of the grounds referred to in clause ( a) of sub -section ( 1), a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the mandate. (3) If, under this se ction or sub -section ( 3) of section 13, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub -section( 3) of section 12. 15. Termination of mandate and substitution of arbitrator .(1) In addition to the circumstances referred to in section 13 or section 14,the mandate of a n arbitrator shall terminate (a) where he withdraws from office for any reason; or (b) by or pursuant to agreement of the parties. (2) Where the mandate of an arbit rator terminates, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced. (3) Unless otherwise a greed by the parties, where an arbitrator is replaced under sub -section ( 2), any hearings previously held maybe repeated at the discretion of the arbitral tribunal. 1. Ins. by Act 3 of 2016, s. 8 (w.e.f. 23 -10-2015). 2. Sub s. by s. 9, ibid., for The mandate of an arbitrator shall terminate if (w.e.f. 23 -10-2015). 14 (4) Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal mad e prior to the replacement of an arbitrator under this section shall not b e invalid solely because there has been a change in the composition of the arbitral tribunal. CHAPTER IV Jurisdiction of arbitral tribunals 16. Competence of arbitral tribunal to rul e on its jurisdiction. (1) The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreem ent, and for that purpose, (a) an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract; and (b) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause. (2) A plea th at the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence; however, a party shall not be precluded from raising such a plea merely because that he has appointed , or participated in the app ointment of, an arbitrator. (3) A plea that the arbitral tribunal is exceeding th e scope of its authority shall b e raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. (4) The arbitral trib unal may, in either of the cases referred to in sub -section ( 2) or sub -section ( 3), admit a later plea if it considers the delay justified. (5) The arbitral tribunal shall decide on a plea referred to in sub -section ( 2) or sub -section ( 3) and, where the ar bitral tribunal takes a decision rejecting the plea, continue with the arbitral proceedings and make an arbitral award. (6) A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in accordance with section 34. 1[17. Interim measures ordered by arbitral tribunal .(1) A party may, during the arbitral proceedings 2***, apply to the arbitral tribunal (i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral pro ceedings; or (ii) for an interim measure of protection in respect of any of the following matters, namely: (a) the preservation, interim custody or sale of any goods which are the subject -matter of the arbitration agreement; (b) securing the amount in dis pute in the arbitration; (c) the detention, preservation or inspection of any property or thing which is the subject - matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any p erson to enter upon any land or building in the possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence; (d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient, and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it. 1. Subs. by Act 3 of 2016, s. 10 , for section 17 (w.e.f. 23 -10-2015) . 2. The words and figures or at any time after the making of the arbitral award but before it is enforced in accordance with section 36 omitted by Act 33 of 2019, s. 4 (w.e.f. 30 -8-2019). 15 (2) Subject to any orders passed in an appeal under section 37, any order issued by the arbitral tribunal under this section shall be deemed to be an order of the Court for all pu rposes and shall be enforceable under the Code of Civil Procedure,1908 (5 of 1908) , in the same manner as if it were an order of the Court. ] CHAPTER V Conduct of arbitral proceedings 18. Equal treatment of parties .The parties shall be treated with equalit y and each party shall be given a full opportunity to presen t this case. 19. Determination of rules of procedure. (1) The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872) . (2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting its proceedings. (3) Failing any agreement referred to in sub -section ( 2), the arbitral tribunal may, subject to this Part, conduct the proceedings in the manner it considers appropriate. (4) The power of the arbitral tribunal under sub -section ( 3) includes the power to determine the admissibility, relevance, materiality and weight of any evidence. 20. Place of arbitration .(1) The pa rties are free to agree on the place of arbitration. (2) Failing any agreement referred to in sub -section ( 1), the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience o f the parties. (3) Notwithstanding sub -section ( 1) or sub -section ( 2), the arbitral tribunal may, unless otherwise agreed by the parties, meet at anyplace it considers appropriate for consultation among its members, for hearing witnesses , experts or the pa rties, or for inspection of documents, goods or other property. 21. Commencement of arbitral proceedings. Unless otherwise agreed by the pa rties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that d ispute to be referred to arbitration is received by the respondent. 22. Language. (1) The parties are free to agree upon the language or languages to be used in the arbitral proceedings. (2) Failing any agreement referred to in sub -section ( 1), the arbitra l tribunal shall determine the language or languages to be used in the arbitral proceedings. (3) The agreement or determination, unless otherwise specified, shall apply to any written statement by a party, any hearing and any arbitral award, decision or ot her communication by the arbitral tribunal. (4) The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitral tribunal. 23. Statem ents of claim and defence. (1) Within the period of time agreed upon by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent sha ll state his defence in respect of these particulars, unless the parties have otherwise agreed as to the required elements of those statements. (2) The parties may submit with their statements all documents they consider to be relevant or may add a referen ce to the documents or other evidence they will submit. 1[(2A) The respondent, in support of his case, may also submit a counterclaim or plead a set -off, which shall be adjudicated upon by the arbitral tribunal, if such counterclaim or set -off falls within the scope of the arbitration agreement. ] (3) Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it. 1. Ins. by Act 3 of 2016, s. 11 (w.e.f. 23 -10-2015). 16 1[(4) The statement of claim and defence under this section shall be completed within a period of six months from the date the arbitrator or all the arbitrators, as the case may be, recei ved notice, in writing of their appointment.] 24. Hearings and written proceedings. (1) Unless otherwise agreed by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or wheth er the proceedings shall be conducted on the basis of documents an d other materials: Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings, on a request by a party, unless the parties have agreed that no o ral hearing shall be held : 2[Provided further that the arbitral tribunal shall, as far as possible, hold oral hearings for the presentation of evidence or for oral argument on day -to-day basis, and not grant any adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on the party seeking adjournment without any sufficient cause. ] (2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of documents, goods or other property. (3) All statements, documents or other information suppl ied to, or applications made to the arbitral tribunal by one party shall be communicated to the other party, and any expert report or evidentiary documen t on which the arbitral tribunal may rely in making its decision shall be communicated to the parties. 25. Default of a party. Unless otherwise agreed by the parties, where, witho ut showing sufficient cause, (a) the claimant fails to communicate his state ment of claim in accord

parties, where, witho ut showing sufficient cause, (a) the claimant fails to communicate his state ment of claim in accordance with sub -section ( 1) of section 23, the arbitral tribunal shall terminate the proceedings; (b) the respondent fails to communicate his statement of defence in accordance with sub -section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations by the claimant 3[and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited] . (c) a party fails to appear at an oral hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award on the evidence before it. 26. Expert appointed by arbitral tribunal. (1) Unless otherwise agreed by the parties, the arbitral tribunal may (a) appoint one or more experts to report to it on specific issues to be determined by the arbitral tribunal, and (b) require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection . (2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the expert shall, after delivery of his written or oral report, participate in an oral hearing where the parties have the opportunity to put questions to him and to present expert witnesses in order to testify on the points at issue . (3) Unless otherwise agreed by the parties, the expert shall, on the request of a part y, make available to that party for examination all documents, goods or other property in the possession of the expert with which he was provided in order to prepare his report . 27. Court assistance in taking evidence. (1) The arbitral tribunal, or a party with the approval of the arbitral tribunal, may apply to the Court for assistance in taking evidence. (2) The application shall specify (a) the names and addresses of the parties and the arbitrators; (b) the general nature of the claim and the relief soug ht; (c) the evidence to be obtained, in particular, (i) the name and address of any person to be heard as witness or expert witness and a statement of the subject -matter of the testimony required; 1. Ins. by Act 33 of 2019, s. 5 (w.e.f. 30 -8-2019). 2. Ins. by Act 3 of 2016, s. 12 (w.e.f. 23 -10-2015). 3. Ins. by s. 13, ibid. (w.e.f. 23 -10-2015). 17 (ii) the description of an y document to be produced or pro perty to be inspected. (3) The Court may, within its competence and according to its rules on taking evidence, execute the request by ordering that the evidence be provided directly to the arbitral tribunal. (4) The Court may , while making an order under s ub-section ( 3), issue the same processes to witnesses as it may issue in suits tried before it. (5) Persons failing to attend in accordance with such process, or making any other default, or refusing to give their evidence, or guilty of any contempt to the arbitral tribunal during the conduct of arbitral proceedings, shall be subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the arbitral tribunal as they would incur for the like offences in suits tri ed before the Court. (6) In this section the expression Processes includes summonses and commissions for the examination of witnesses and summonses to produce documents. CHAPTER VI Making of arbitral award and termination of proceedings 28. Rules applica ble to substance of dispute .(1) Where the place of arbit ration is situate in India, (a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the s ubstantive law for the time being in force in India; (b) in internati onal commercial arbitration, (i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the disput e; (ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules; (iii) failing any desig nation of the law under clause ( a) by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute. (2) The arbitral tribunal shall decide ex aequoet bono or as amiable c ompositeur only if the parties have expressly authorised it to do so. 1[(3) While deciding and making an award, the arbitral tribunal shall, in all cases, take into account the terms of the contract and trade usages applicable to the transaction. ] 29.Decis ion making by panel of arbitrators .(1) Unless otherwise agreed by the parties, in arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members. (2) Notwithstanding sub -section ( 1), if authorised by the parties or all the members of the arbitral tribunal, questions of procedure may be decided by the presiding arbitrator. 2[29A. Time limit for arbitral award .3[(1)The award in matters other than international commercial arbitration sh all be made by the arbitral tribunal within a period of twelve months from the date of completion of pleadings under sub -section ( 4) of section 23: Provided that the award in the matter of international commercial arbitration may be made as expeditiously a s possible and endeavor may be made to dispose of the matter within a period of twelve months from the date of completion of pleadings under sub -section ( 4) of section 23 .] (2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree. (3) The parties may, by consent, extend the period specified in sub -section ( 1) for making award for a further pe riod not exceeding six months. 1. Subs. by Act 3 of 2016, s. 14 , for sub -section ( 3) (w.e.f. 23 -10-2015). 2. Ins. b y Act 3 of 2016 , s. 15 (w.e.f. 23 -10-2015). 3. Subs. by Act 33 of 2019, s. 6, for sub -section ( 1) (w.e.f. 30 -8-2019). 18 (4) If the award is not made within the period specified in sub -section ( 1) or the extended period specified under sub -section ( 3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or aft er the expiry of the period so specified, extended the period: Provided that while extending the period under this sub -section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may or der reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay. 1[Provided further that where an application under sub -section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said a pplication: Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.] (5) The extension of period referred to in sub -section ( 4) may be on the application of any of the parties and may be granted only for s ufficient cause and on such terms and conditions as may be imposed by the Court. (6) While extending the period referred to in sub -section ( 4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s)appointed under this section shall be deemed to have received the said evidence and material. (7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal. (8) It shall be open to the Court to impose actua l or exemplary costs upon any of the parties under this section. (9) An application filed under sub -section ( 5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty day s from the date of service of notice on the opposite party. STATE AMENDMENT Jammu and Kashmir and Ladakh (UTs). Amendment of sections 29A. (a) for sub -section (1), the following sub -section shall be substituted, namely: (1) The award shall be made wi thin a period of twelve months from the date the arbitral tribunal enters upon the reference. Explanation .For the purposes of this sub -section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing, of their appointment.; (b) in sub -section (4), omit second and third provisos. [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws ) Order , 2020, notification No. S.O. 1123(E) dated (18 -3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23 -10-2020) .] 29B. Fast track procedure. (1) Notwithstanding anything contained in this Act, t he parties to an arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub -section ( 3). (2) The parties to the arb itration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties. (3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under sub -section ( 1): 1. Ins. by Act 33 of 2019, s. 6 (w.e.f. 30 -8-2019). 19 (a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing; (b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them; (c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it ne cessary to have oral hearing for clarifying certain issues; (d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case. (4) The awar d under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference. (5) If the award is not made within the period specified in sub -section ( 4), the provisions of sub - sections ( 3) to ( 9) of sectio n 29A shall apply to the proceedings. (6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties. ] 30. Settlement. (1) It is not incompatible with an arbitration agreem ent for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement. (2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on a greed terms. (3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award. (4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the subs tance of the dispute. 31. Form and contents of arbitral award. (1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal. (2) For the purposes of sub -section ( 1), in arbitral proceedings with more than one a rbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated. (3) The arbitral award shall state the reasons upon which it is based, unless (a) the part ies have agreed that no reasons are to be given, or (b) the award is an arbitral award on agreed terms under section 30. (4) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place. (5) After the arbitral award is made, a signed copy shall be delivered to each party. (6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award. (7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment o f money, the arbitral tribunal may include in the sum for which the award is made interest, a t such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the

of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made. 1[(b) A sum directed to be paid by an arbitral a ward shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment . 1. Subs. by Act 3 of 2016, s. 16 , for clause ( b) (w.e.f. 23 -10-2015). 20 Explanation. The expression current rate of interest shall have the same meaning as assigned to it under clause ( b) of section 2 of the Interest Act, 1978 (14 of 1978) .] 1[(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.] Explanation. For the purpose of clause ( a), costs means reasonable costs relating to (i) the fees and expenses of the arbitrators and witnesses, (ii) legal fees and expenses, (iii) any administration fees of the institution supervising the arbitration, and (iv) any other ex penses incurred in connection with the arbitral proceedings and the arbitral award. 2[31A. Regime for costs. (1) In relation to any arbitration proceeding or a proceeding under any of the provisions of this Act pertaining to the arbitration, the Court or a rbitral tribunal, notwithstanding anything contained in the Code of Civil Procedure,1908 (5 of 1908) , shall have the discretion to determine (a) whether costs are payable by one party to another; (b) the amount of such costs; and (c) when such costs are t o be paid. Explanation. For the purpose of this sub -section, costs means reasonable costs relating to (i) the fees and expenses of the arbitrators, Courts and witnesses; (ii) legal fees and expenses; (iii) any administration fees of the institution supe rvising the arbitration; and (iv) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award. (2) If the Court or arbitral tribunal decides to make an order as to payment of costs, (a) the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party; or (b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing. (3) In determining the costs, the Court or arbitral tribunal shall hav e regard to all the circumstances, including (a) the conduct of all the parties; (b) whether a party has succeeded partly in the case; (c) whether the par ty had made a frivolous counter claim leading to delay in the disposal of the arbitral proceedings; an d (d) whether any reasonable offer to settle the dispute is made by a party and refused by the other party. (4) The Court or arbitral tribunal may make any order under this section including the order that a party shall pay (a) a proportion of another par tys costs; (b) a stated amount in respect of another partys costs; (c) costs from or until a certain date only; (d) costs incurred before proceedings have begun; (e) costs relating to particular steps taken in the proceedings; 2. Subs. by s. 1 6, ibid., for sub -section ( 8) (w.e.f. 23 -10-2015). 3. Ins. by s.17, ibid. (w.e.f. 23 -10-2015). 21 (f ) costs relating only to a distinct part of the proceedings; and (g) interest on costs from or until a certain date . (5) An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event shall be only valid if such agreement i s made after the dispute in question has arisen .] 32. Termination of proceedings. (1) The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal under sub -section ( 2). (2) The arbitral tribunal shall is sue an order for the termination of th e arbitral proceedings where (a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of t he dispute, (b) the parties agree on the termination of the proceedings, or (c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. (3) Subject to section 33 and sub -section ( 4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings. 33. Correction and interpretation of award; additional award .(1) Within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties (a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award; (b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award. (2) If the arbitral tribunal considers the request made under sub -section ( 1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award. (3) The a rbitral tribunal may correct any error of the type r eferred to in clause ( a) of sub -section ( 1), on its own initiative, within thirty days from the date of the arbitral award. (4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award. (5) If the arbitral tribunal considers the request made under sub -section ( 4) to be j ustified, it shall make the additional arbitral award within sixty days from the receipt of such request. (6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an addi tional arbitral award under sub -section ( 2) or sub -section (5). (7) Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under this section. CHAPTER VII Recourse against arbitral award 34. Application for setting aside arbitral award .(1) Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub -section ( 2) and sub-section ( 3). (2) An arbitral award may be s et aside by the Court only if (a) the party making the appli cation 1[establishes on the basis of the record of the arbitral tribunal that] 1. Subs. by Act 33 of 2019, s. 7, for furnishes proof that (w.e.f. 30 -8-2019). 22 (i) a party was under some incapacity, or (ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or (iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matter s beyond the scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with t his Par t; or (b) the Court finds that (i) the subject -matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conflict with the public policy of India. 1[Explanation 1.For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if, (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. Explanation 2.For the avoidance of doubt, the test as to whether there is a contravention with the fundamental pol icy of Indian law shall not entail a review on the merits of the dispute. ] 2[(2A) An arbitral award arising out of arbitrations other than international commercial arbitrations, may also be set aside by the Court, if the Court finds that the award is vitia ted by patent illegality appearing on the face of the award: Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by re appreciation of evidence.] (3) An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal: Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter. (4) On receipt of an application under sub -section ( 1), the Court may, where it is appropriate and it is so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of arbitral tribunal will eliminate the grounds for setting aside the arbitral award. 2. Subs. by Act 3 of 2016, s. 18, for the Explanation (w.e.f. 23 -10-2015). 3. Ins. by s. 18, ibid. (w.e.f. 23 -10-2015 ). 23 1[(5) An application under this section shall be filed by a party only after issuing a prior notice to t he other party and such application shall be accompanied by an affidavit by the applicant endorsing compliance with the said requirement. (6) An application under this section shall be disposed of expeditiously, and in any event, within a period of one year from the date on which the notice referred to in sub -section ( 5) is served upon the other party.] STATE AMENDMENT Jammu and Kashmir and Ladakh (UTs). Amendment of section 34. (i) after sub -section (2), insert the following sub -section, namely: - (2A) An arbitral award may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award: Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by re -appreciation of evidence.; (ii) in sub -section (3), (i) for three months substitute, six months; (ii) in proviso thereto, for, three months and thirty days substitute respectively six months and sixty days. [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws ) Order , 2020, notification No. S.O . 1123(E) dated (18 -3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23 -10-2020) .] CHAPTER VIII Finality and enforcement of arbitral awards 35. Finality of arbitral awards. Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively. 2[36. Enforcement. (1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub -section ( 2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908) , in the same manner as if it were a decree of the court. (2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the C ourt grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section ( 3), on a separate application made for that purpose. (3) Upon filing of an application under sub -section ( 2) for stay of the operati on of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing: Provided that the Court shall, while considering the application for grant of stay in t he case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908) .] 1. Ins. by Act 3 of 2016, s. 18 (w.e.f . 23-10-2015). 2. Subs. by s. 19, ibid., for section

23-10-2015). 2. Subs. by s. 19, ibid., for section 36 (w.e.f. 23 -10-2015). 24 1[Provided further that where the Court is satisfied that a Prima facie case is made out that, (a) the ar bitration agreement or contract which is the basis of the award; or (b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the chal lenge under section 34 to the award. Explanation .For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court p roceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016) .] CHAPTER IX Appeals 37. Appealable orders .(1) 2[Notwithstanding anything contained in any other law for the time being in f orce, an appeal] shall lie from the following orders (and from no others) to the Court authorised by law to hear appeals from original decrees of the Cou rt passing the order, namely: 3[(a) refusing to refer the parties to arbitration under section 8; (b) granting or refusing to grant any measure under section 9; (c) setting aside or refusing to set aside an arbitral award under section 34. ] (2) Appeal shall also lie to a court from an or der of the arbitral tribunal (a) accepting the plea referred to in s ub-section ( 2) or sub -section ( 3) of section 16; or (b) granting or refusing to grant an interim measure under section 17. (3) No second appeal shall lie from an order passed in appeal under this section, but nothing in th is section shall affect or take away any right to appeal to the Supreme Court. CHAPTER X Miscellaneous 38. Deposits .(1) The arbitral tribunal may fix the amount of the depo sit or supplementary deposit, as the case may be, as an advance for the costs referred to in sub -section ( 8) of sectio n 31, which it expects will be incurred in respect of the claim submitted to it: Provided that where, apart from the claim, a counter -claim has been submitted to the arbitral tribunal, it may fix separate amount of deposit for the claim and counter -claim. (2) The deposit referred to in sub -section ( 1) shall be payable in equal shares by the parties: Provided that where one party fails to pay his share of the deposit, the other party may pay that share: Provided further that where the other party also does n ot pay the aforesaid share in respect of the claim or the counter -claim, the arbitral tribunal may suspend or terminate the arbitral proceedings in respect of such claim or counter -claim, as the case may be. (3) Upon termination of the arbitral proceedings , the arbitral tribunal shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the party or parties, as the case may be. 39. Lien on arbitral award and deposits as to costs .(1) Subject to the provisio ns of sub -section (2) and to any provision to the contrary in the arbitration agreement, the arbitral tribunal shall have a lien on the arbitral award for any unpaid costs of the arbitration. 1. Ins. by Act 3 of 2021, s. 2 (w.e.f. 2 3-10-2015). 2. Subs. by Act 33 of 2019, s. 8, for An appeal (w.e.f. 30 -8-2019). 3. Subs. by Act 3 of 2016, s. 20, for clauses ( a) and ( b) (w.e.f. 23 -10-2015). 25 (2) If in any case an arbitral tribunal refuses to deliver its a ward except on payment of the costs demanded by it, the Court may, on an application in this behalf, order that the arbitral tribunal shall deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded, and shall, after suc h inquiry, if any, as it thinks fit, further order that out of the money so paid into Court there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable and that the balance of the money, if any, shal l be refunded to the applicant. (3) An application under sub -section ( 2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal, and the arbitral tribunal shall be entitled to appear and be heard on any such application. (4) The Court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them. 40. Arbi tration agreement not to be discharged by death of party thereto .(1) An arbitration agreement shall not be discharged by the death of any party thereto either as respects the deceased or as respects any other p arty, but shall in such event be en forceable by or against the legal representative of the deceased. (2) The mandate of an arbitrator shall not be terminated by the death of any party by whom he was appointed. (3) Nothing in this section shall affect the operation of any law by virtue of which any ri ght of action is extinguished by the death of a person. 41. Provisions in case of insolvency. (1) Where it is provided by a term in a contract to which an insolvent is a party that any dispute arising there out or in connection therewith shall be submitted to arbitration, the said term shall, if the receiver adopts the contract, be enforceable by or against him so far as it relates to any such dispute. (2) Where a person who has been adjudged an insolvent had, before the commencement of the insolvency proce edings, become a party to a n arbitration agreement, and any matter to which the agreement applies is required to be determined in connection with, or for the purposes of, the insolvency proceedings , then, if the case is one to which sub -section ( 1) does no t apply, any other party or the receiver may apply to the judicial authority having jurisdiction in the insolvency proceedings for an order directing that the matter in question shall be submitted to arbitration in accordance with the arbitration agreement , and the judicial authority may, if it is of opinion that, having regard to all the circumstances of the case, the matter ought to be determined by arbitration, make an order accordingly. (3) In this section the expression receiver includes an Official Assignee. 42. Jurisdiction. Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force, where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court. 1[42A. Confidentiality of information. Notwithstanding anyt hing contained by any other law for the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement shall maintain confidentially of all arbitral proceedings except award where its disclosure is necessary for the purpose of implementation and enforcement of award . 42B. Protection of action taken in good faith. No suit or other legal proceedings shall lie against the arbitrator for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder .] 43. Limitations. (1) The Li mitation Act, 1963 (36 of 1963) , shall apply to arbitrations as it applies to proceedings in court. 1. Ins. by Act 33 of 2019, s. 9 (w.e.f. 30 -8-2019). 26 (2) For the purposes of this section and the Lim itation Act, 1963 (36 of 1963) , an arbitr ation shall be deemed to have commenced on the date referred to in section 21. (3) Where an arbit ration agreement to submit fu ture disputes to arbitration provides that any claim to which the agreement applies shall be barred unless some step to commence a rbitral proceedings is taken within a time fixed by the agreement, and a dispute arises to which the agreement applies , the Court, if it is of opinion that in the circumstances of the case undue hardship would otherwise be caused, and notwithstanding that the time so fixed has expired, may on such terms, if any, as the justice of the case may require, extend the time for such period as it thinks proper. (4) Where the Court orders that an arbitral award be set aside, the period between the commencement of the arbitration and the date of the order of the Court shall be excluded in computing the time prescribed by the Lim itation Act, 1963 (36 of 1963) , for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted. STA TE AMENDMENT Bihar. Omission of sub -section (3) of Section -43 of the Arbitration and Conciliation Act, 1996. - Sub Section -3 of the Section 43 of the said Act shall be omitted. [Vide Bihar Act 20 of 2002, s. 2] 1[43J. Norms for accreditation of arbitrat ors.The qualifications, experience and norms for accreditation of arbitrators shall be such as may be specified by the regulations.] PART II ENFORCE MENT OF CERTAIN FOREIGN AWARDS CHAPTER I New York Convention Awards 44. Definition. In this Chapter, unless the context otherwise requires, foreign award means an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India, made on or after the 11th day of October, 1960 (a) in pursuance of an agreement in writing for arbitration to which the Convention set forth in the First Schedule applies, and (b) in one of such territories as the Central Government, being satisfied that reciprocal provisions have bee n made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies. 45. Power of judicial authority to refer parties to arbitration .Notwithstanding anything contained in Part I or in the Code of Civil Proce dure, 1908 (5 of 1908) ,a judicial authority, when seized of an action in a matter in respect of which the parties have made an agreement referred to in section 44, shall, at the request of one of the parties or any person claiming through or under him, ref er the parties to arbitration, 2[unless it prima facie finds] that the said agreement is null and void, inoperative or incapable of being performed. 46. When foreign award binding. Any foreign award which would be enforceable under this Chapter shall be tr eated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award. 47. Evidence. (1) The party applying for the enforcement of a foreign award shall, at the time of the application, produce before the court 1. Subs. by Act 3 of 2021, s. 3, for section 43J (r.w.e.f. 23 -10-2021). 2. Subs. by Act 33 of 2019, s. 11 , for unless it finds (w.e.f. 30 -8-2019). 27 (a) the original award or a cop y thereof, duly authenticated in the manner required by the law of the country in which it was made; (b) the original agreement for arbitration or a duly certified copy thereof; and (c) such evidence as may be n ecessary to prove that the award is a foreign award. (2) If the award or agreement to be produced under sub -section ( 1) is in a foreign language, the party seeking to enforce the award shall produce a translation into English certified as correct by a diplomatic or consular agent of the country to wh ich that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India. 1[Explanation. In this section and in the sections following in this Chapter, Court means the High Court having original juri sdiction to decide the questions forming the subject -matter of the arbitral award if the same had been the subject -matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.] 48. Conditions for enforcement of foreign awards. (1) Enforcement of a foreign award may be refused, at the request of the party against whom it is invoked, only if that party furnishes to the court proof th at (a) the parties to the agreement referred to in section 44 were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or (b) the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope o f the submission to arbitration: Provided that, if the decisions on matters submitted to arbitrati on can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced; or (d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a

arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authorit y of the country in which, or under the law of which, that award was made. (2) Enforcement of an arbitral award may also be refused if the C ourt finds that (a) the subject -matter of the difference is not capable of settlement by arbitration under the law of India; or (b) the enforcement of the award would be contrary to the public policy of India. 2[Explanation 1.For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if, (i) the making of the aw ard was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. Explanation 2.For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute. ] 1. Subs . by Act 3 of 2016, s. 21, for the Explanation (w.e.f. 23 -10-2015). 2. Subs. by s. 22, ibid., for the Explanation (w.e.f. 23 -10-2015). 28 (3) If an application for the setting aside or suspension of the awar d has been made to a competent authority referred to in clause (e) of sub -section ( 1) the Court may, if it considers it proper, adjourn the decision on the enforc ement of the award and may also , on the application of the party claiming enforcement of the a ward, order the other party to give suitable security. 49. Enforcement of foreign awards. Where the Court is satisfied that the foreign award is enforceable under this Chapter, the award shall be deemed to be a decree of that Court. 50. Appealable orders .(1) 1[Notwithstanding anything contained in any other law for the time being in force, an appeal] shall l ie from the order refusing to (a) refer the parties to arbitration under section 45; (b) enforce a foreign award under section 48, to the court author ised by law to hear appeals from such order. (2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away any right to appeal to the Supreme Court. 51. Saving .Nothing in this Chapt er shall prejudice any rights which any person would have had of enforcing in India of any award or of availing himself in India of any award if this Chapter had not been enacted. 52. Chapter II not to apply. Chapter II of this Part shall not apply in rela tion to foreign awards to which this Chapter applies. CHAPTER II Geneva Convention Awards 53. Interpretation. In this Chapter foreign award means an arbitral award on differences relating to matters considered as commercial under the law in force in Indi a made afte r the 28th day of July, 1924, (a) in pursuance of an agreement for arbitration to which the Protocol set forth in the Second Schedule applies, and (b) between persons of whom one is subject to the jurisdiction of some one of such Powers as th e Central Government, being satisfied that reciprocal provisions have been made, may, by notification in the Official Gazette, declare to be parties to the Convention set forth in the Third Schedule, and of whom the other is subject to the jurisdiction of some other of the Powers aforesaid, and (c) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by like notification, declare to be territories to which the said Convention applies, and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the purpose of contesting the validity of the award are pending in the country in which it was made. 54. Power of judicial authority to refer parties to arbitratio n.Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 190 8), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom section 53 applies and including an arbitration agreem ent, whether referring to present or fu ture differences, which is valid under that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person claiming through or under him to the decision of the arbitrators and such reference shall not prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative. 55. Foreign awards when binding .Any foreign award which would be enforceable u nder this Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal 1. Subs. by Act 33 of 2019, s. 12, for An appeal (w.e.f. 30 -8-2019) . 29 proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award. 56. Evidence. (1) The party applying for the enforcement of a foreign award shall, at t he time of application produce before the Court (a) the original award or a copy thereof duly authenticated in the manner required by the law of the country in which it was made; (b) evidence proving that the award has become final; and (c) such evidence as may be necessary to prove that the conditions mention ed in clauses ( a) and (c) of sub -section ( 1) of section 57 are satisfied. (2) Where any document requiring to be produced under sub -section ( 1) is in a foreign language, the party seeking to enforce the award shall produce a translation into English certif ied as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India. 1[Explanation .In this section and in the sections followi ng in this Chapter, Court means the High Court having original jurisdiction to decide the questions forming the subject -matter of the arbitral award if the same had been the subject -matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court. ] 57. Conditions for enforcement of foreign awards .(1) In order that a foreign award may be enforceable under this Chapter, it shall be necessary t hat (a) the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto; (b) the subject -matter of the award is capable of settlement by arbitration under the law of India; (c) the award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure; (d) the award has become final in the country in which it has b een made, in the sense that it will not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings for the purpose of contesti ng the validity of the award are pending; (e) the enforcement of the award is not contrar y to the public policy or the law of India. 2[Explanation 1.For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if, (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law ; or (iii) it is in conflict with the most basic notions of morality or justice. Explanation 2.For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute .] (2) Even if the conditions laid down in sub -section ( 1) are fulfilled, enforcement of the award shall be refused if the Court is satisfied that (a) the award has been annulled in the country in which it was made; (b) the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented; 1. Sub s. by Act 3 of 2016, s. 23 , for the Explanation (w.e.f. 23 -10-2015). 2. Subs. by s. 24, ibid., for the Explanation (w.e.f. 23 -10-2015). 30 (c) the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the sco pe of the submission to arbitration: Provided that if the award has not covered all the differences submitted to the arbitral tribunal, the Court may, if it thinks fit, postpone such enforcement or grant it subject to such guarantee as the Court may decide . (3) If the party against whom the award has been made proves that under the law governing the arbitration procedure there is aground, other than the grounds referred to in clauses ( a) and ( c) of sub - section ( 1) and clauses ( b) and ( c) of sub -section ( 2)entitling him to contest the validity of the award, the Court may, if it thinks fit, either refuse enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tr ibunal. 58. Enforcement of foreign awards .Where the Court is satisfied that the foreign award is enforceable under this Chapter, the award shall be deemed to be a decree of the Court. 59. Appealable orders .(1) An appeal shall lie from the order refusing (a) to refer the parties to arbitration under section 54; and (b) to enforce a foreign award under section 57, to the court authorised by law to hear appeals from such order. (2) No second appeal shall lie from an order passed in appeal under this section , but nothing in this section shall affect or take away any right to appeal to the Supreme Court. 60. Saving. Nothing in this Chapter shall prejudice any rights which any person would have had of enforcing in India of any award or of availing himself in In dia of any award if this Chapter had not been enacted. PART III CONCILIATION 61. Application and scope. (1) Save as otherwise provided by any law for the time being in force and unless the parties have otherwise agreed, this Part shall apply to conciliatio n of disputes arising out of legal relationship, whether contractual or not and to all proceedings relating thereto. (2) This Part shall not apply where by virtue of any law for the time being in force certain disputes may not be submitted to conciliation. 62. Commencement of conciliation proceedings. (1) The party initiating conciliation shall send to the other party a written invitation to conciliate under this Part, briefly identifying the subject of the dispute. (2) Conciliation proceedings , shall comme nce when the other party accepts in writing the invitation to conciliate. (3) If the other party rejects the invitation, there will be no conciliation proceedings. (4) If the party initiating conciliation does not receive a reply within thirty days from th e date on which he sends the invitation, or within such other period of time as specified in the invitation, he may elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing the other party according ly. 63. Number of conciliators. (1) There shall be one conciliator unless the parties agree that there shall be two or three conciliators. (2) Where there is more than one conciliator, they ought, as a general rule, to act joint ly. 64. Appointment of conc iliators. (1) Subject to sub -section ( 2) (a) in conciliation proceedings , with one conciliator, the parties may agree on the name of a sole conciliator; 31 (b) in conciliation proceedings with two conciliators, each party may appoint one conciliator; (c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who shall act as the presiding conciliator. (2) Parties may enlist the assistance of a suitable institut ion or person in connection with the appointment of conciliators , and in particular, (a) a party may request such an institution or person to recommend the names of suitable individuals to act as conciliator; or (b) the parties may agree that the appointm ent of one or more conciliators be made directly by such a n institution or person: Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the advisability of appointing a conciliator of a nationality other than the nationalities of the parties. 65. Submission of statements to conciliator. (1) The conciliator, upon his appointment, may request each party to submit to him a brief written statement describing the general nature of the dispute and the points at issue. Each party shall send a copy of such statement to the other party. (2) The conciliator may request each party to submit to him a further written statement of his position and the facts and grounds in support thereof, supplemented by any documents and other evidence that such party deems appropriate. The p arty shall send a copy of such statement, documents and other evidence to the other party. (3) At an y stage of the conciliation proceedings, the conciliator may request a party to submit to him such additional information as he deems appropriate. Explanati on.In this section and all the following sections of this Part, the term "conciliator" a pplies to a sole conciliator, two or three conciliators , as the case may be. 66. Conciliator not bound by certain enactments. The conciliator is not bound by the Code of Civil Procedure, 1908 (5 of 1908)or the Indian Evidence Act, 1872 (1 of 18

1908 (5 of 1908)or the Indian Evidence Act, 1872 (1 of 1872). 67. Role of conciliator. (1) The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute . (2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the disput e, including any previous business practices between the parties. (3) The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may expre ss, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute. (4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons therefor. 68. Administrative assistance. In order to facilitate the conduct of the conciliation proceedings, the parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. 69. Communication between conciliator and parties .(1) The conciliator may invite the parties to meet him or may communicate with them orally or in writing. He may mee t or communicate with the parties together or with each of them separately. (2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held, such place shall be determined by the conciliator, after consultation with the parties, having regard to the circumstances of the conciliation proceedings. 32 70. Disclosure of information. When the conciliator receives factual information concerning the dispute from a party, he shall disclose the substance of that information to the o ther party in order that the other party may have the opportunity to present any explanation which he considers appropriate: Provided that when a party gives any information to the conciliator subject to a specific condition that it be kept confidential, the conciliator shall not disclose that information to the other party. 71. Co-operation of parties with conciliator. The parties shall in good faith co -operate with the conciliator and, in particular, shall endeavour to comply with requests by the concilia tor to submit written materials, provide evidence and attend meetings. 72. Suggestions by parties for settlement of dispute .Each party may, on his own initiative or at the invitation of the conciliator, submit to the conciliator suggestions for the settle ment of the dispute. 73. Settlement agreement. (1) When it appears to the conciliator that there exist elements of a settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations. After receiving the observations of the parties, the conciliator may reformulate the terms of a possible settlement in the light of such observations. (2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in drawing up, the settlement agreement. (3) When the parties sign the settlement agreement, it shall be final and binding on the parti es and persons claiming under them respectively. (4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties. 74. Status and effect of settlement agreement. The settlement agreement shall have the same status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30. 75. Confidentiality .Notwithstanding anything contained in any other law for the time being in force, the con ciliator and the parties shall keep confidential all matter s relating to the conciliation proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is necessary for purposes of implementation and enforcement. 76. Termination of conciliation proceedings. The conciliation proceedings shall be terminated (a) by the signing of the sett lement agreement by the parties, on the date of the agreement; or (b) by a written declaration of the conciliator, after c onsultatio n with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or (c) by a written declaration of the parties addressed to the conciliator to the effect that the concilia tion proceedings are terminated , on the date of the declaration; or (d) by a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration. 77. Resort to arbit ral or judicial proceedings .The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subject - matter of the conciliation proceedings except that a party may initiate a rbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving his rights. 78. Costs. (1) Upon termination of the conciliation proceedings, the conciliator shall fix the cos ts of the conciliation and give written notic e thereof to the parties. (2) For the purpose of sub -section ( 1), costs means reasonable costs relating to (a) the fee and expenses of the conciliator and witness es requested by the conciliator with the consent of the parties; (b) any expert advice requ ested by the conciliator with the consent of the parties; (c) any assistance provided pursuant to clause ( b) of sub -section ( 2) of section 64 and section 68. 33 (d) any other expenses incurred in connection with the conciliation proceedings and the settlement agreement. (3) The costs shall be borne equally by the parties unless the settlement agreement prov ides for a different apportionment . All other expenses incurred by a party shall be borne by that party. 79. Deposits. (1) The conciliator may direct each p arty to deposit an equal amount as an advance for the costs referred to in sub -section( 2) of section 78 which he expects will be incurred. (2) During the course of the conciliation proceedings, the conciliator may direct supplementary deposits in an equal amount from each party. (3) If the required deposits under sub -sections ( 1) and ( 2) are not paid in full by both parties within thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination of the proceedings to the parties, effective on the date of that declaration. (4) Upon termination of the conciliation proceedings , the conciliator shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the parties. 80. Role of conciliator in other proceedings. Unless othe rwise agreed by the parties , (a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of a dispute that is the subje ct of the conciliation proceedings; (b) the conciliator shall not be presented by the parties as a witness in any arbitral or judicial proceedings. 81.Admissibility of evidence in other proceedings. The parties shall not rely on or introduce as evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is the subject o f the conciliation proceedings, (a) views expressed or suggestions made by the other party in respect of a possible settlement of the dispute; (b) admissions made by the other party in the course of the conciliation proceedings; (c) proposals made by the conciliator; (d) the fact that the other party had indicated his willingness to accept a proposal for settlement made by the conciliator. PART IV SUPPLEMENTARY PROVISIONS 82. Power of High Court to make rules. The High Court may make rules consistent with this Act as to all proceedings before the Court under this Act. 83. Removal of 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 appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall made be after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each Houses of Parliament. 84. Power to make rules .(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be, after it is made before e ach 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 sess ions aforesai d, both Houses agree in 34 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 s uch modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 85. Repeal and savings. (1) The Arbitration (Protocol and Co nvention) Act, 1937 (6 of 1937) , the Arbitration Act, 1940 (10 of 1940) and th e Foreign Awards (Recognition and Enforcement) Act,1961 (45 of 1961) are hereby repealed. (2) Notwithstanding such repeal, (a) the provisions of the said enactments shall apply in relation to arbitral proceedings which commenced be fore this Act came into force unless otherwise agreed by the parties but this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force; (b) all rules made and notifications published, under the said enactmen ts shall, to the extent to which they are not repugnant to this Act, be deemed respectively to have been made or issued under this Act . 86. Repeal and saving. (1) The Arbitration and Conciliation (Third) Ordinance, 1996 (Ord.27 of 1996) is hereby repealed . (2) Notwithstanding such repeal, any order, rule, notification or scheme made or anything done or any action taken in pursuance of any provision of the said Ordinance shall be deemed to have been made, done or taken under the corresponding provisions of this Act. 1[87. Effect of arbitral and related court proceedings commenced prior to 23rd October, 2015 .Unless the parties otherwise agree, the amendments made to this Act by the Arbitration and Conciliation (Amendment) Act, 2015 shall (a) not apply to (i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (23rd October, 2015); (ii) court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015; (b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such arbitral proceedings.] 1. Ins. by Act 33 of 2019, s. 13 ( r.w.e.f. 30-8-2019). 35 THE FIRST SCHEDULE (See section 44) CONV ENTION ON THE RECOGNITION AND ENF ORCEMENT OF FOREIGN ARBITRAL AWARDS ARTICLE 1 1.This Convention shall apply to the reco gnition and enforcement of arbitral awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought , and arising out of differences between persons, whether physical or legal. It shall also apply to arbitral awards not considered as domestic awards in the State where their recognition and enforcement are sought. 2.The term arbitral awards shall include not only awards made by arbitrators appointed for each case but also those made by permanent a rbitral bodies to which the parties have submitted. 3.When signing, ratifying or acceding to this Convention, or notifying exten sion under article X hereof, any State may on the basis of reciprocity declare that it will apply the Convention to the recognit ion and enforcement of awards made only in the territory of another Contracting State. It may also declare that it will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are cons idered as commerc ial under the national law of the State making such declaration. ARTICLE II 1.Each Contracting State shall recognise an agreement in writing und er which the parties undertake to submit to arbitration all or any differences which have arisen or which may ar ise between them in respect of defined legal relationship, whether contractual or not, concerning a subject -matter capable of settlement by arbitration. 2.The term agreement in writing shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams. 3.The court of a Contracting State, when seized of an action in a matter in respect of which the parties have made an agreement within the meaning of this article, shall, at the request of one of the parties, refer the parties to arbitration, unless in finds that the said agreement is null and void, inoperative of incapable of being performed. ARTICLE III Each Contracting State shall recognize arbitral a wards as binding and en force them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. There shall not be imposed substantially more onerous conditions or higher fees or charges on th e recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition

es or charges on th e recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards. ARTICLE IV 1.To obtain the recognition and enforce ment mentioned in the preceding article, the party applying for recognition and enforcement shall, at the time of the application, supply (a) the duly authenticated original award o r a duly certified copy thereof; (b) the original agreement referred to in article II or a duly certified copy thereof. 2.If the said award or agreement is not made in an official language of the country in which the award is relied upon, the party applying for recognition and enforcement of the award shall produce a translation of these documents into such language. The translation shall be certified by an official or sworn translator or by a diplomatic or consular agent. 36 ARTICLE V 1.Recognition and enforcement of the award may be refused, at the request of the party against whom it is invoked, only if that party furnish es to the competent authority where the recognition and enfor cement is sought, proof that (a) the parties to the agreement referred to in article II were, under the law applicable to them, under some incapacity, or the said agreement is not valid under th e law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or (b) the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or o f the arbitration proceedings or was otherwise unable to present his case; or (c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope o f the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enf orced; or (d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made. 2.Recognition and enforcement of an arbitral award may also be refus ed if the competent authority in the country where recognition and enfo rcement is sought finds that (a) the subject -matter of the difference is not capable of settlement by arbitration under the law of that country; or (b) the recognition or enforcement o f the award would be contrary to the public policy of that country. ARTICLE VI If an application for the setting aside or suspension of the award has been made to a competent authority referred to in article V(1)(e), the authority before which the award is sought to be relied upon may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security. ARTICLE VII 1.The provisions of the present Convention shall not affect the validity of multilateral or bilateral agreements concerning the recognition and enforcement of arbitral awards entered into by the Contracting States nor deprive any interested party of any righ t the may have to avail himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon. 2.The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Conventi on on the Execution of Foreign Arbitral Awards of1927 shall cease to have effect between Contracting States on their becoming bound and to the extent that they become bound by this Convention. ARTICLE VIII 1.This Convention shall be open until 31st Decembe r, 1958 for signature on behalf of any Member of the United Nations and also on behalf of any other State which is or hereafter becomes member of any specialised agency of the United Nations, or which is or hereafter becomes a party to the Statute of the International Court of Justice, or any other State to which an invitation has been addressed by the General Assembly of the United Nations. 2.This Convention shall be ratified and the instrument of ratification shall be deposited with the Secretary -General of the United Nations. ARTICLE 1X 1.This Conv ention shall be open for accession to all States referred to in article VIII. 2.Accession shall be effected by the deposit of an instrument of accession with the Secretary -General of the United Nations. 37 ARTICLE X 1.Any State may, at the time of signature, ratification or accession, declare that this Convention shall extend to all or any of the territories for the international relations of which it is responsible. Such a declaration shall take effect when the Con vention enters into force for the State concerned. 2.At any time thereafter any such extension shall be made by notification addressed to the Secretary - General of the United Nations and shall take effect as from the ninetieth day after the day of receipt b y the Secretary -General of the United Nations of this notification , or as from the date of entry into force of the Convention for the State concerned, whichever is the later. 3.With respect to those territories to which this Convention is not extended at t he time of signature, ratification or accession, each State concerned shall consider the possibility of taking the necessary steps in order to extend the application of this Convention to such territories, subject, where necessary for constitutional reason s, to the consent of the Governments of such territories. ARTICLE XI In the case of a federal or non -unitary State, the foll owing provisions shall apply: (a) with respect of those articles of this Convention that come within the legislative jurisdiction o f the federal authority, the obligations of the federal Government shall to this extent be the same as those of Contracting States which are not federal States; (b) with respect to those articles of this Convention that come within the legislative jurisdic tion of constituent States or provinces which are not, under the constitutional system of the federation, bound to take legislative action, the federal Government shall bring such articles with a favourable recommendation to the notice of the appropriate a uthorities of constituent States or provinces at the earliest possible moment; (c) a federal State Party to this Convention shall, at the request of any other Contracting State transmitted through the Secretary -General of the United Nations, supply a state ment of the law and practice of the federation and its constituent units in regard to any particular provision of this Convention, showing the extent to which effect has been given to that provision by legislative or other action. ARTICLE XII 1.This Conven tion shall come into force on the ninetieth day following the date of deposit of the third instrument of ratification or accession. 2.For each State ratifying or acceding to this Convention after the deposit of the third instrument of ratification or acces sion, this Convention shall enter into force on the ninetieth day after deposit by such State of its instrument of ratification or accession. ARTICLE XIII 1.Any Contracting State may denounce this Convention by a written notification to the Secretary - Gener al of the United Nations. Denunciation shall take effect one year after the date of receipt of the notification by the Secretary -General. 2.Any State which has made a declaration or notification under article X may, at any time thereafter, by notification to the Secretary -General of the United Nations, declare that this Convention shall cease to extend to the territory concerned one year after the date of the receipt of the notification by the Secretary - General. 3.This Convention shall continue to be applic able to arbitral awards in respect of which recognition or enforcement proceedings have been instituted before the denunciation takes effect. ARTICLE XIV A Contracting State shall not be entitled to avail itself of the present Convention against other Cont racting States except to the extent that it is itself bound to apply the Convention. 38 ARTICLE XV The Secretary -General of the United Nations shall notify the States contemplated in ar ticle VIII of the following: (a) signatures and ratifications in accord ance with article VIII; (b) accessions in accordance with article IX; (c) declarations and notifications under articles I, X and XI; (d) the date upon which this Convention enters into force in accordance with article XII; (e) denunciations and notificatio ns in accordance with article XIII. ARTICLE XVI 1.This Convention, of which the Chinese, English, French, Russian and Spanish texts shall be equally authentic, shall be deposited in the archives of the United Nations. 2.The Secretary -General of the United Nations shall transmit a certified copy of this Convention to the State s contemplated in article XIII. 39 THE SECOND SCHEDULE (See section 53) PROTOCOL ON ARBITRATION CLAUSES The undersigned, being duly authorised, declare that they accept, on behalf of the countries which they represent, the following provisions: 1.Each of the Contracting States recognises the validity of an agreement whether relating to existing or future differences between parties subject respectively to the jurisdiction of different Co ntracting States by which the parties to a contract agree to submit to arbitration all or any differences that may arise in connection with such contract relating to commercial matters or to any other matter capable of settlement by arbitration, whether or not the arbitration is to take place in a country to whose jurisdiction none of the parties is subject. Each Contracting State reserves the right to limit the obligation mentioned above to contracts which are considered as commercial under its national la w .Any Contracting State which avails itself of this right will notify the Secretary -General of the League of Nations in order that the other Contracting States may be so informed. 2.The arbitral procedure, including the constitution of the Arbitral Tribun al, shall be governed by the will of the parties and by the law of the country in whose territory the arbitration takes place. The Contracting States agree to facilitate all steps in the procedure which require to be taken in their own territories, in acco rdance with the provisions of their law governing arbitral procedure applicable to existing differences. 3.Each Contra cting State undertakes to ensure the execution by its authorities and in accordance with the provisions of its national laws of arbitral a wards made in its own territory under the preceding articles. 4. The Tribunals of the Contracting Parties, on being seized of a dispute regarding a contract made between persons to whom Article I applies and including an Arbitration Agreement whether refer ring to present or fu ture differences wh ich is valid in virtue of the said article and capable of being carried into effect, shall refer the parties on the application of either of them to the decision of the Arbitrators. Such reference shall not prejudice the competence of the judicial tribunals in case the agreement or the arbitration cannot proceed or becomes inoperative. 5.The present Protocol, which shall remain open for signature by all States, shall be ratified. The ratification shall be deposited as soon as possible with the Secretary -General of the League of Nations, who shall notify such deposit to all the Signatory States. 6.The present Protocol will come into force as soon as two ratifications have been deposited. Thereafter it will take effect, in the case of each Contracting State, one month after the notification by the Secretary -General of the deposit of its ratification. 7.The present Protocol may be denounced by any Contracting State on giving one year's notice. Denunciation shall be effecte d by a notification addressed to the Secretary -General of the League, who will immediately transmit copies of such notification to all the other Signatory States and inform them of the date on which it was received. The denunciation shall take effect one y ear after the date on which it was notified to the Secretary -General, and shall operate only in respect of the notifying State. 8.The Contracting States may declare that their acceptance of the present Protocol does not include any or all of the under ment ioned territories: that is to say, their colonies, overseas possessions or territories, protectorates or the territories over which they exercise a mandate. The said States may subsequently adhere separately on behalf of any territory thus excluded. The Secretary -General of the League of Nations shall be informed as soon as possible of such adhesions. He shall notify such adhesions to all Signatory States. They will take effect on e month after the notification by the Secretary -General to all Signatory States. The Contracting States may also denounce the Protocol separately on behalf of any of the territories referred to above. Article 7applies to such denunciation. 40 THE THIRD SCHEDULE (See section 53) CONVENTION ON THE EXECUTION OF FOREIGN ARBITRAL AWARDS ARTICLE 1.(1) In the territories of any High Contracting Party to which the present Convention applies, an arbitral award made in pursuance of an agreement whether relating to existing or future differences (hereinafter call ed a submission to arbitration ) covered by the Protocol on A rbitration Clauses ope ned at Geneva on September 24th, 1923, shall be recognised as binding and shall be enforced in accordance with the rules of the procedure of the territory where the award is relied upon, provided that the s aid award has been made in a territory of one of the High Contracting Parties to which the present Convention applies and between persons who are subject to the jurisdiction of one of the High Contracting Parties. (2) To obtain such recognition or enforcem ent, it shall, further, be necessary: (a) that the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto; (b) that the subject -matter of the award is capable of settlement by arbitration under the law of the country in which the award is sought to be relied upon; (c) that the award has been made by the Arbitral Tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the la w governing the arbitration procedure; (d) that the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition, appeal or pourvoi en cassation (in the countries where such forms of procedure exist) or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending; (e) that the recognition or enforcement of the award is not contrary to the public policy or to the principles of the la w of the country in which it is sought to be relied upon. ARTICLE 2 .Even if the c onditions laid down in Article 1 hereof are fulfilled, recognition and enforcement of the award shall be refused if the Court is satisfied: (a) that the

of are fulfilled, recognition and enforcement of the award shall be refused if the Court is satisfied: (a) that the award has been annul led in the country in which it was made; (b) that the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented; (c) that the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the scope of the submission to arbitration. If the award has not covered all the questions submitted to the arbitral tribunal, the competent authority of the country where recognition or enforcement of the award is sought can, if it thinks fit , postpone such recognition or enforcement or grant it subject to such guarantee as that authority may decide. ARTICLE 3 .If the party against whom the award has been made proves that, under the law governing the arbitration procedure, there is aground, other than the grounds referred to in Article 1( a) and ( c), and A rticle 2( b) and ( c), entitling him to contest the validity of the award in a Court of Law, the Court may, if it thinks fit, either refuse recognition or enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time with in which to have the award annulled by the competent tribunal. 41 ARTICLE 4 .The party relying upon an award or claiming its enforceme nt must supply, in particular: (1) the original award or a copy thereof duly authenticated, according to the requirements of the law of the country in which it was made; (2) documentary or other evidence to prove that the award has become final, in the sense defined in Article 1 (d), in the country in which it was made; (3) when necessary, documentary or other evidence to prov e that the cond itions laid down in Article 1, p aragraph ( 1) and paragraph ( 2) (a) and ( c), have been fulfilled. A translation of the award and of the other documents mentioned in this Article into the official language of the country where the award is sou ght to be relied upon may be demanded. Such translations must be certified correct by a diplomatic or consular agent of the country to which the party who seeks to rely upon the award belongs or by a sworn translator of the country where the award is sough t to be relied upon. ARTICLE 5 .The provisions of the above A rticles s hall not deprive any interested party of the right of availing himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such a ward is sought to be relied upon. ARTICLE 6 .The present Convention applies only to arbitral awards made after the coming into force of the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923. ARTICLE 7 .The present Convention, which w ill remain open to the signature of all the signatories of the Protocol of 1923 on Arbitration Clauses, shall have been ratified. It may be ratified only on behalf of those Members of the League of Nations and Non -Member States on whose behalf the Protocol of 1923 shall have been ratified. Ratification shall be deposited as soon as possible with the Secretary -General of the League of Nations, who will notify such deposit to all the signatories. ARTICLE 8 .The present Convention shall come into force three m onths after it shall have been ratified on behalf of two High Contracting Parties. Thereafter, it shall take effect, in the case of each High Contracting Party, three months after the deposit of the ratification on its behalf with the Secretary - General of the League of Nations. ARTICLE 9 .The present Convention may be denounced on behalf of any Member of the League or Non-Member State. Denunciation shall be notified in writing to the Secretary -General of the League of Nations, who will immediately send a copy thereof, certified to be inconformity with the notifications, to all the other Contracting Parties, at the same time informing them of the date on which he received it . The denunciation shall come into force only in respect of the High Contracting Party which shall have notified it and one year after such notification shall have reached the Secretary -General of the League of Nations. The denunciation of the Protocol on A rbitration Clauses shall entail , ipso facto , the denunciation of the present Conventi on. ARTICLE 10 .The present Convention does not apply to the colonies, protectorates or territories under suzerainty or mandate of any High Contracting Party unless they are specially mentioned. The application of this Convention to one or more of such col onies, protectorates or territories to which the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923, applies, can be effected at any time by means of a declaration addressed to the Secretary -General of the League of Nations by one of the High Contracting Parties. Such declaration shall take effect three months after the deposit thereof. The High Contracting Parties can at any time denounce the Convention for all or any of the colonies, protectorates or territories referred to above. Article 9 hereof applied to such denunciation. ARTICLE 11 .A certified copy of the present Convention shall be transmitted by the Secretary - General of the L eague of Nations of every Member of the League of Nations and to every Non -Member State which sign s the same. 42 1[THE FOURTH SCHEDULE [See section 11 (14)] Sum in dispute Model fee Up to Rs. 5,00,000 Rs. 45,000 Above Rs. 5,00,000 and up to Rs. 20,00,000 Rs. 45,000 plus 3.5 per cent. of the claim amount over and above Rs. 5,00,000 Above Rs. 20,00,000 a nd up to Rs. 1,00,00,00 0 Rs. 97,500 plus 3 per cent. of the claim amount over and above Rs. 20,00,000 Above Rs. 1,00,00,000 and up to Rs. 10,00,00,000 Rs. 3,37,500 plus 1 per cent. of the claim amount over and above Rs. 1,00,00,000 Above Rs. 10,00,00, 000 and up to Rs. 20,00,00,000 Rs. 12,37,500 plus 0.75 per cent. of the claim amount over and above Rs. 1,00,00,000 Above Rs. 20,00,00,000 Rs. 19,87,500 plus 0. 5 per cent. of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00, 000 Note: In the event, the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of twenty -five per cent. on the fee payable as per the table set out above. 1. Ins. by Act 3 of 2016, s. 25 (w.e.f. 23-10-2015). 43 THE FIFTH SCHEDULE [See section 12( 1)(b)] The f ollowing grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators: Arbitrators relationship with the parties or counsel 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 4. The arbitrator i s a lawyer in the same law firm which is representing one of the parties. 5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involve d in the matters in dispute in the arbitration. 6. The arbitrators law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself. 7. The arbitrators law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties. 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant finan cial income therefrom. 9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company. 10. A close family member of the arbitrator has a significant fina ncial interest in one of the parties or an affiliate of one of the parties. 11.The arbitrator is a legal representative of an entity that is a party in the arbitration. 12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties. 13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom. Relationship of the arbitrator to the dispute 15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the p arties. 16. The arbitrator has previous involvement in the case. Arbitrators direct or indirect interest in the dispute 17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is pri vately held. 18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. 19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to reco urse on the part of the unsuccessful party in the dispute. 44 Previous services for one of the parties or other involvement in the case 20. The arbitrator has within the past three years served as counsel for one of the parties or an affiliate of one of the parties or has previously advised or been consulted by the party or an affiliate of the party making the appointment in an unrelated matter, but the arbitrator and the party or the affiliate of the party have no ongoing relationship. 21. The arbitrator ha s within the past three years served as counsel against one of the parties or an affiliate of one of the parties in an unrelated matter. 22. The arbitrator has within the past three years been appointed as arbitrator on two or more occasions by one of the parties or an affiliate of one of the parties. 23. The arbitrators law firm has within the past three years acted for one of the parties or an affiliate of one of the parties in an unrelated matter without the involvement of the arbitrator. 24. The arbitr ator currently serves, or has served within the past three years, as arbitrator in another arbitration on a related issue involving one of the parties or an affiliate of one of the parties. Relationship between an arbitrator and another arbitrator or couns el 25. The arbitrator and another arbitrator are lawyers in the same law firm. 26. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration. 27. A lawyer in the arbitrators law firm is an arbitrator in another dispute involving the same party or parties or an affiliate of one of the parties. 28. A close family member of the arbitrator is a partner or employee of the law firm representing one of the parties, b ut is not assisting with the dispute. 29. The arbitrator has within the past three years received more than three appointments by the same counsel or the same law firm. Relationship between arbitrator and party and others involved in the arbitration 30. Th e arbitrators law firm is currently acting adverse to one of the parties or an affiliate of one of the parties. 31. The arbitrator had been associated within the past three years with a party or an affiliate of one of the parties in a professional capacit y, such as a former employee or partner. Other circumstances 32. The arbitrator holds shares, either directly or indirectly, which by reason of number or denomination constitute a material holding in one of the parties or an affiliate of one of the parties that is publicly listed. 33. The arbitrator holds a position in an arbitration institution with appointing authority over the dispute. 34. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affil iate of one of the parties, where the affiliate is not directly involved in the matters in dispute in the arbitration. Explanation 1.The term close family member refers to a spouse, sibling, child, parent or life partner. Explanation 2.The term affili ate encompasses all companies in one group of companies including the parent company. Explanation 3.For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitrati on, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above. 45 THE SIXTH SCHEDULE [See section 12 (1)(b)] NAME: CONTACT DETAILS: PRIOR EXPERIENCE (INCLUDING EXPERIENCE WITH ARBITRATIONS): NUMBER OF ONGOING ARBITRATIONS: CIRCUMSTANCES DISCLOSING ANY PAST OR PRESENT RELATIONSHIP WITH ORINTEREST IN ANY OF THE P ARTIES OR IN RELATION TO THE SUBJECT -MATTER INDISPUTE, WHETHER FINANCI

THE P ARTIES OR IN RELATION TO THE SUBJECT -MATTER INDISPUTE, WHETHER FINANCIAL, BUSINESS, PROFESSIONAL OR OTHER KIND, WHICH IS LIKELY TO GIVE RISE TO JUSTIFIABLE DOUBTS AS TO YOURINDEPENDENCE OR IMPARTIALITY (LIST OUT): CIRCUMSTANCES WHICH ARE LIKELY TO AFFECT YO UR ABILITY TO DEVOTE SUFFICIENT TIME TO THE ARBITRATION AND IN PARTICULAR YOUR ABILITY TO FINISH THE ENTIRE ARBITRATION WITHIN TWELVE MONTHS (LIST OUT): 46 THE SEVENTH SCHEDULE [See section 12 (5)] Arbitrators relationship with the p arties or counsel 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties. 4. The arbitrator is a lawyer in the same law firm which is representing one of the parties. 5. The arbitrator is a manager, director or part of the management , or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration. 6. The arbitrators law firm had a previous but terminated involvement in the case without t he arbitrator being involved himself or herself. 7. The arbitrators law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties. 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom. 9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the perso ns in the management and controlling the company. 10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties. 11. The arbitrator is a legal representative of an entity that i s a party in the arbitration. 12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties. 13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom. Relationship of the arbitrator to the dispute 15. The arbi trator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties. 16. The arbitrator has previous involvement in the case. Arbitrators direct or indirect interest in the dispute 17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held. 18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. 19. The arbitr ator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute. Explanation 1.The term close family member refers to a spouse, sibling, child , parent or life partner. Explanation 2.The term affiliate encompasses all companies in one group of companies including the parent company. Explanation 3.For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fa ct to be taken into account while applying the rules set out above. ] 47 APPENDIX EXTRACTS FROM THE ARBITRATION AND CONCILIATION (AMENDMENT ) ACT, 2015 (3 OF 2016) * * * * * 1. Short title and commencement. (1) This Act may be called the Arbitration a nd Conciliation (Amendment) Act, 2015. (2) It shall be deemed to have come into force on the 23rd October, 2015. * * * * * 26. Act no t to apply to pending arbitral proceedings. Nothing contained in this Act shall apply to the arbitral proceedings c ommenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but this Act shall apply in relation to arbitral proceedings commenced on or after the date of commenceme nt of this Act. 27. Repeal and savings. (1) The Arbitration and Conciliation (Amendment) Ordinance, 2015 (Ord. 9 of 2015), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the principal Act, as amended by this Act.

THE SOCIETIES REGISTRATION ACT, 1860 ACT NO. 21 OF 18601 [21st May , 1860.] An Act for the Registration of Literary, Scientific and Charitable Societies . Preamble. WHEREAS it is expedient that provision should be made for improving the legal condition of societies established for the promotion of literature, science, or the fine arts, or for the diffusion of useful knowledge, 2[the diffusion of political education] or for charitable purposes; It is enacted as follows: STATE AMENDMENT Union territory of Ladakh After the preamble and before the existing section 1, insert 1. Appointment, etc. of Registrar of Societies, etc .-(1) The Administration of Union territory of Ladakh may, by notification, appoint a person to be called the Registrar of Societies and he shall exercise such powers and perform such duties and functions as are conferred by or u nder the 1. Short title given by the Indian Short Titles Act, 1897 (14 of 1897). The Act (with the exception of the first four sections) is based on the Literary and Scientific Institutions Act, 1854 (17 an d 18 Vict., c. 112), ss. 20 et seq . It has been declared to be in force in the whole of India, except the Scheduled Districts, by s . 3 of the Laws Local Extent Act, 1874 (15 of 1874). It has been extended to the New Provinces and Merged States by Act 59 of 1949. It has been declared, by notification under s. 3( a) of the Scheduled Districts Act, 1874 (14 of 1874), to be in force in the following Scheduled Districts, namely: West Jalpaiguri . . . . . . See Gazette of India, 1881, Pt. I, p. 74. The Districts of Hazaribagh, Lohardaga (now the Ranchi District, se e Calcutta Gazette, 1899, . . . Pt. I, p. 44), and Manbhum and ParganaDhalbhum . . . and the Kolhan in the District of Singbhum . . . . Ditto 1881, Pt. I, p. 504. The Scheduled po rtion of the Mirzapur District . . . . Ditto 1879, Pt. I, p. 383. Jaunsar Bawar . . . . . . . Ditto 1879, Pt. I, p. 302. The Scheduled Districts in Ganjam and Vizagapatam . . . Ditto 1898, Pt. I, p. 870 . Assam (except the North Lushai Hills) . . . . . Ditto 1897, Pt. I, p. 299. It has been extended, by notification under s. 5 of the last -mentioned Act, to the following Scheduled Districts, namely: Kumaon and Garhwal. . . . . . . See Gazette of India, 1876, Pt. I, p. 606. Ajmer and Merwara. . . . . . . Ditto 1878, Pt. I, p. 380. The Act has been extended to Goa, Daman and Diu with modifications by Reg. 12 of 1962, s. 3 and the Schedule to Dadra and Nagar Haveli with modifications by Reg. 6 of 1963, s. 2 and the First Schedule (w.e.f. 1 -7-1965) and to the Union territory of Lakshadweep, by Reg. 8 of 1965, s. 3 and Sch. (w.e.f. 1 -10-1967). It has been amended in C. P. and Berar by C. P. and B erar Act 3 of 1940, Assam by Assam Acts 14 of 1948, 15 of 1948, 1 of 1952, 7 of 1957 and 11 of 1958, Bihar by Bihar Acts 30 of 1948, 4 of 1951 and 2 of 1960, Punjab by East Punjab Acts 32 of 1948, 6 of 1949 and Punjab Act 21 of 1961, West Bengal by West Bengal Act 16 of 1950, Andhra by President s Act 10 of 1954, Madras by Mad. Act 9 of 1960, Orissa by Orissa Acts 21 of 1958, 8 of 1969 and 9 of 1979, Maharashtra by Maharashtra Acts 11 of 1968 and 49 of 1971, Himachal Pradesh by H. P. Act 23 of 1973, Uttar Pradesh by U. P. Acts 25 of 1959, 52 of 1975, 13 of 1978 and 11 of 1984, Bombay by Bo m. Act 76 of 1958, Haryana by Haryana Act 23 of 1974, Pondicherry by Act 9 of 1969, and Union territory of Delhi by Act 26 of 1983. The Act came into force in Pondicherry vide Reg. 7 of 1963 and the First Schedule (w.e.f. 1 -10-1963). The Act has been repealed in its application to Bellary District by Mysore Act 14 of 1955 and in Mysore by Mysore Acts 17 of 1960 and 19 of 1973. It has been repealed in its application to Mahakoshal, Vindhya Pradesh and Bhopal regions of Madhya Pradesh by Madhya Pradesh Act 1 of 1960 (when notified). 2. Ins. by Act 22 of 1927, s. 2. 3 provisions of this Act, and shall subject to such general or special order as the Administration of the Union territory of Ladakh may from time to time make, superintend the administration and carry out the provisions of this Act throughout the Un ion territory of Ladakh. ; (2) The Administration of the Union territory of Ladakh may by notification, appoint one or more Additional Registrars with such local jurisdiction as may be assigned to them. (3) The Additional Registrars so appointed shall, subject to the control of the Registrar of Societies, exercise such of the powers and perform such of the functions of the Registrar of Societies as the Administration of the Union territory of Ladakh may authorise in that behalf. ; (b) number the existing section as section 1A and in this section as so numbered, for "Registrar of Joint -Stock Companies" subst itute "Registrar of Societies .". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S.O. 3805(E), dated (26-10-2020 ).] STATE AMENDMENT Arunachal Pradesh Extension of Central Act, 1860 (21 of 1860). - The Societies Registration Act, 1860, as in force in the territories to which it generally extends, is hereby extended to the Union Territory of Arunachal Pradesh, subject to the modifications mentioned in the Schedule. Certain notifications to be inopera tive.On the commencement of this Act, the notifications Nos. 5459P, 5463p, and 5467p dated the 13th October, 1914, in so far as they relate to the Societies Registration Act, 1860, shall cease to be operative in the Union Territory of Arunachal Pradesh. THE SCHEDULE (See Section) Modification to the Societies Registration Act, 1860. 1. Throughout the Act, -- (1) for the words Registrar of Joint -Stock Companies wherever they occur, the word Registrar shall be substituted. (2) for the words State Government wherever they occur the word Administrator shall be substituted. [Vide Arunachal Pradesh Act 6 of 1978, s. 2] Amendment of Schedule .In the Schedule to the Societies Registration (Extension to Arunachal Pradesh) Act, 19 (hereinafter referred to as the Principal Act) : - (1) for the word "Administrator" wherever it occurs, the words "State Government' be substituted. (2) the clause (a) of serial 2 shall be omitted. (3) after serial 2, the following shall be inserted, namely : "2-A, for section 3 of the Central Act, 1860 (21 of 1860) the following shall be substituted, namely : - 3. (1) Upon such memorandum and certified copy being filed along with particulars of the address of the Society's office which shall be its registered address, by the Se cretary of the Society on behalf of the persons subscribing to the memorandum, the Registrar shall certify under his hand that the Society is registered under this Act, and there shall be paid to the Registrar for every such registration a fee of ten thous and rupees or such smaller fee as the State Government may not ification in respect of any class of Societies : Provided that the State Government may by notification in the Official Gazette, increase from time to time the fee payable under this sub -section : Provided further that the Registrar may, in his discretion, issue public notice(s) to such person as he thinks fit inviting objections, if any, against the proposed registration and consider all objections that may be received by him before registering the Society. (2) Notwithstanding anything in sub -section (1), the Registrar shall refuse to register a Society, if after giving it an opportunity of showing cause against such refusal he is satisfied that : (a) the name of the Society is identical with that of any other society previously registered under this Act ; 4 (b) the name of the Society sought to be registered uses any of the words, namely, 'Union', 'State', `Land Mortgage', 'Land Development', 'Co -operative', `Gandhi' Reserve Bank' or any words expressing or implying the sanction, approval or patronage of the Central or any State Government or any word which suggests or is calculated to suggest any connection with any local authority or any corporation or body constituted by or under any law for the time be ing in force, or is such as is otherwise likely to deceive the public or the members of any other society previously registered under this Act. (c) any one or more of the objects of the Society sought to be registered is not an object mentioned in sections 1 a nd 20 ; or (d) its objects are contrary to any other law for the time being in force : Provided that the State Government may in exceptional circumstances, for reasons to be recorded permit any society to use the word 'Union' or the word 'Gandhi' in its name, and thereupon, the use of that word in the name of the society shall not be a ground for refusal to register or to renew the certificate of registration of such society. 3-A Renewal of certificate of registration -(1) Subject to the provisions of sub-section (2), a certificate of registration issued under section 3 shall remain in force for a period of three years from the date of issue : Provided that a certificate issued before the commencement of the Societies Registration (Extension to Arunacha l Pradesh) (Amendment) Act, 2008 (hereinafter in the section referred to as the said Act), shall remain in force for a period of three years from the date of such commencement on payment of the difference of the fees specified under sub - section (3) and the fees already paid. (2) A Society registered under section 3 whether before or after the commencement of the said Act, shall on application alongwith a copy of duly audited statement of account made to the Registrar within one month of the expiration of th e period referred to in sub -section (1) and on payment of the fee specified in sub -section (3), be entitled to have its certificate of registration renewed for one year at a time : Provided that in the case of a society registered before the commencement o f the said Act, the Registrar shall refuse to renew the certificate of registration, if, after giving it an opportunity of showing cause against such refusal, he is satisfied that any of the grounds mentioned in sub -section (2) of section 3 exist in respec t thereof. (3) There shall be paid to the Registrar with every application for renewal of the certificate of registration : (a) a fee equal to the registration fee payable under section 3 or rupees four thousand, whichever is less, if such application is filed within the period specified in sub section (2) : Provided that the State Government may, by notification in the Official Gazette, increase from time to time, the fee payable under this clause subject to the condition that the fee so increased shall not ex ceed the registration fee payable under section 3 ; (b) an additional fee of four hundred rupees or such higher fee not exceeding one - fifth of the fee payable under clause (a) as may be notified by the State Government, if such application is filed within one month of the date of expiration of the period specified in sub -section (2) ; and (c) an additional fee at the rate of twenty rupees per month or part thereof or such higher additional fee per month not exceeding half of the additional fee payable under clause (b) as may be notified by the State Government, if such application is filed beyond one month of the expiration of the period specified in sub -section (2). (4) Every application for renewal of the certificate shall be accompanied by a list of members of t he managing body elected after the registration of the society or after the renewal of certificate of registration and also the certificate sought to be renewed unless dispensed with by the Registrar on the ground of its loss or destruction or any other su fficient cause. (5) A society which fails to get its certificate of registration renewed in accordance with this section within one year from the expiration of the period for which the certificate was operative shall become an unregistered society : Provid ed that the Registrar may, for sufficient cause, allow an application for renewal more than one year after the expiration of the period for which the certificate was operative on payment of a fee of four hundred rupees or such higher fee not exceeding ten times of the additional fee payable under clause (b) of sub -section (3) as may be notified by the State Government from time to

the additional fee payable under clause (b) of sub -section (3) as may be notified by the State Government from time to time. 5 (6) Where a certificate of registration is renewed in accordance with sub -section (2) or sub -section (5) such renewal shal l operate from the date of expiration of the period from which the certificate was operative. 3-B Reference to the State Government If any question arises whether any society is entitled to get itself registered in accordance with section 3 or to get its certificate of registration renewed in accordance with section 3 -A, the matter shall be referred to the State Government, and the decision of the State Government, thereon shall be final". (4) in serial 6, of the Schedule to the State Act No. 6 of 1978 in section 19 of the Central Act No. 21 of 1860 for the words "one rupee" and "fifteen paise" respectively the words "ten rupees" and "five rupees" shall be substituted. (5) in serial 7, (i) in se ction 21 (1) for the words "five hundred" and "fifty rupees" respectively, the words, "five thousand rupees" and "five hundred rupees" shall be substituted. (ii) in section 21 (2) for the words "two thousand" the words "twenty thousand" shall be inserted. (7) after serial 7, serial 8 shall be added, namely : "8. after section 22, the following shall be added, namely : [Vide Arunachal Pradesh Act 9 of 2008, s. 2] 1. Societies formed by memorandum of association and registration. Any seven or more persons a ssociated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, andfiling the same with the Registrar of Joint -stock Companies 1***, form themselves into a society under this Act. Orissa Insertion of new section before section 1, Act 21 of 1860 .In the Societies Registration Act, 1860 (21 of 1860) (hereinafter referred to as the said Act), section 1 shall be renumbered as section 1-A and before the said section as so renumbered, the following new section shall be inserted, namely: 1. Appointment of Registrar of Societies. The State Government may, by notification, appoint a person to be called the Registrar of Societies and he shall exercise such powers and perform such duties and functions as are conferred by or under the provisions of this Act, and shall subject to such general or special order as the State Govern ment may from time to time make , superintend the administration and carry out the provisions of this Act throughout the State or Orissa. [Vide the Orissa Act 21 of 1958, s. 2] Adaptation .In the said Act, for the expressions, Registrar of Joint Stock Companies and Registrar wherever they occur, the expression Registrar of Societies shall be substituted. [Vide the Orissa Act 21 of 1958, s. 3] Pending proceedings and construction of reference to Registrar of Companies in instruments issued or made before this Act. (1) All proceedings und er the said Act pending before the Registrar of Joint Stock Compani es at the date of commencement of this Act shall stand transferred to the Registrar of Societies and any such proceedings shall be continued and disposed of by the Registrar of Societies, as if it had been origina lly instituted before such Registrar under the said Act. (2) In all certificates of registration and in all rules or bye -laws of societies and in all other instruments issued or made under the said Act before the dat e of commencement of this Act, referen ces to the Registrar of Joint St ock Companies or the Registrar of Companies shall be deemed to be and be construed as references to the Registrar of Societies. [Vide the Orissa Act 21 of 1958, s. 4] 1. The words and figures under Act 19 of 1857 rep. by Act 16 of 1874, s. 1 and Sch., Pt. I. See now the Companies Act, 1956 (1 of 1956). 6 Orissa Amendment of Section 1. In the Societies Registration Act, 1860 (21 of 1860) , as applicable to the State of Orissa , section 1 shall be renumbered as sub -section (1) thereof and after sub -section (1) as so renumbered, the following sub -sections shall be inserted, namely: (2) The State Governme nt may, by notification, appoint one or more Additional Registrars with such local jurisdiction as may be assigned to them by the State Government. (3) The Additional Registrars so appointed shall, subject to the control of the Registrar of Societies, exercise such of the powers and perform such of the functions of the Registrar of Societies as the State Government may authorize in that behalf.. [Vide the Orissa Act 9 of 1979, s. 2] Union territory of Ladakh After the preamble and before the existing sec tion 1, insert -- "1. Appointment, etc. of Registrar of Societies, etc .--(1) The Administration of Union territory of Ladakh may, by notification, appoint a person to be called the Registrar of Societies and he shall exercise such powers and perform such duties and functions as are conferred by or under the provisions of this Act, and shall subject to such general or special order as the Administration of the Union territory of Ladakh may from time to time make, superintend the administration and carry out the provisions of this Act throughout the Union territory of Ladakh."; "(2) The Administration of the Union territory of Ladakh may by notification, appoint one or more Additional Registrars with such local jurisdiction as may be assigned to them. (3) The Additional Registrars so appointed shall, subject to the control of the Registrar of Societies, exercise such of the powers and perform such of the functions of the Registrar of Societies as the Administration of the Union territory of Ladakh may authoris e in that behalf."; (b) number the existing section as section 1A and in this section as so numbered, for "Registrar of Joint -Stock Companies" substitute "Registrar of Societies.". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S.O. 3805(E), dated (26 -10-2020).] Arunachal Pradesh After section 1, the following section shall be inserted, namely: -- Definitions -1A. --In this Act, unless the context otherwise requires: - (a) Administrator means the Administrator of the Union territory of Arunachal Pradesh appointed by the President under Article 239 of the Constitution; (b) Registrar means the Registrar of Societies appointed by the Administrator. [Vide Arunachal Pradesh Act 6 of 1978, s . 2 and the schedule] Uttarakhand Substitution of section 1 .In Societies Registration Act 1860, (which is hereinafter referred to as Principal Act) the section 1 shall be substituted as follows, namely: -- 1. Societies formed by memorandum of associati on and registration .---Any seven or more persons associated for any literary, scientific or charitable purpose, or for any such purpose as is described in section 20 of the Act, may, be digital signature of their name in online form of Memorandum of Associ ation and rules filling the same online with the Registrar form themselves into a society under this Act. [Vide Uttarakhand Act 4 of 2019, s. 2] 7 Haryana Insertion of section 1A in Central Act 21 of 1860. After section 1 of the Societies Registration Act, 1860 (hereinafter called the principal Act) , The following section shall be inserted, namely: -- 1A. Definitions .In this Act, unless the context otherwise requires, -- (a) prescribed means prescribed by rules made under this Act; (b) State Government means the Government of the State of Haryana.. [Vide Haryana Act 14 of 2007, s. 2] 2. Memorandum of association. The memorandum of association shall contain the following things (that is to say) the name of the society; the objects of the society; the names, addresses, and occupations of the governors, council, directors, committee, or other governing body to whom, by the rules of the society, the management of its affairs is entrusted. A copy of the rules and regulations of the society, certified to be a correct copy by not less than three of the members of the governing body, shall be filed with the memorandum of association. 13. Registration and fees. Upon such memorandum and certified copy being filed, the Registrar shall certify under his hand that the society is registered under this Act. There shall be paid to the Registrar for every such registration fee of fifty rupees, or such smaller fee as 2[the State Govern ment] may, from time to time, direct; and all fees so paid shall be accounted for to 3[the State Government]. STATE AMENDMENT Orissa Insertion of a new section .In the Societies Registration Act, 1860 (21 of 1860) (hereinafter referred to as the principal Act), after Section 3, the following section shall be inserted, namely: 3-A. Prohibition against registration of societies with undesirable names .No society shall be registered by a name which, in the opinion of the Registrar of Societies is undesirable , being a name identical with or, which in the opinion of the Registrar of Societies so nearly resembles the name by which any other existing society has been previously registered under this Act or anybody corporate which has been incorporated or registered under any other law for the time being in force as to be likely to dec eive the public or members of either society or anybody corporate, or which , without the previous permission of the Government concerned , suggests or is calculated to suggest the patronage of that Government or connection with anybody constituted by that Government or any local authority, or which may, subject to any rules made in that behalf, be deemed to be undesirable by the Registrar of Societies.. [Vide the Odisha Act 6 of 2013, s. 2] Union territory of Ladakh Section 3. For "Registrar", substi tute "Registrar of Societies." [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S .O.3805(E), dated (26-10-2020 ).] 1. This section was amended in its application to Berar by s. 14 of the Central Provinces and Berar Vidya Mandir Act, 1939 (C. P. & B. Act 3 of 1940). 2. The words the Governors -General of India i n Council have been successively adapted by the A. O. 1937 and the A. O. 1950 to read as above. 3. The word Govt. has been successively adapted by the A.O . 1937 and the A. O . 1950 to read as above. 8 Uttarakhand Amendment of section 3. In Principal Act sub -section ( 1) of section 3 of shall be substituted as follows, namely: -- 3. Registration and fees .(1) Upon such memorandum and its digitally signed copy being filed alongwith particulars of the address of Society office which will be registered address, by the secretar y of the society on behalf of the persons subscribing to the memorandum, the Registrar shall certify under his digital signature that the society is registered under this Act, For every such registration fees of five thousand five hundred and fifty rupees shall be paid to Registrar. For every such registration for Youth/Women Mangal Dal, Women Group/Community Group fees of fifty rupees shall be paid. Provided further that the State Government may, by notification in the Official Gazette, increase from time to time the fee payable under this sub-section. Provided further that the Registrar may, in his discretion, issue public offline notice or issue offline notice to such persons as he thinks fit inviting offline objections, if any against the proposed regist ration and consider all objections that may be received by him before registering the society. The prescribed fee of registration shall be submitted online after the online approval of registration by the Registrar. After depositing the prescribed fees, th e digitally signed Society Registration Certificate shall be downloaded by the applicant. [Vide Uttarakhand Act 4 of 2019, s. 3] Haryana Amendment of Section 3 of Central Act 21 of 1860. In Section 3 of the Societies Registration Act, 1860 (hereinafter called the principal Act), for the words "fifty rupees", the words "two hundred and fifty rupees" shall be substituted. [Vide Haryana Act 14 of 2001, s. 2] Insertion of section 3A in Centra l Act 21 of 1860 .After section 3 of the principal Act, the following section shall be inserted, namely: -- 3A. Refusal of registration .(1) The Registrar may, in his discretion, issue public notice or issue notice to such persons as he thinks fit inviting objections, if any, against the proposed registration and consider all objections that may be received by him before registering the society. (2) Notwithstanding anything contained in section 3, the Registrar shall refuse to register a society, if after g iving it an opportunity of showing cause against such refusal, he is satisfied that (a) the name of the society is identical with that of any other society previously registered under this Act; (b) the name of the society sought to be registered uses any of the words, namely: -- Union, State, Land Mortgage, Land development, Co -operative, Gandhi, Reserve Bank or any words expressing or implying the sanction. Approval or patronage of the Central or any State Government or any word which sugge sts or is calculated to suggest any connection with any local authority or any corporation or body constituted by or under any law for the time being in force or is such as is otherwise likely to deceive the public or the members of any other society previously registered under this Act; (c) anyone or more of the objects of the society sought to be registered is not an object mentioned in section 1 and 2

(c) anyone or more of the objects of the society sought to be registered is not an object mentioned in section 1 and 20; or (d) its objects are contrary to any other law for the time being in force or contrary to public policy.. [Vide Haryana Act 14 of 200 7, s. 3] 4. Annual list of managing body to be filed. Oncein every year, on or before the fourteenth day succeeding the day on which, according to the rules of the society, the annual general meeting of the 9 society is held, or, if the rules do not provide for an annual general meeting, in the month of January, a list shall be filed with the Registrar of Joint -stock Companies, of the names, addresses and occupations of the governors, council, directors, committee, or oth er governing body then entrusted with the management of the affairs of the society. STATE AMENDMENT Assam Insertion of new section 4A in Act XXI of 1860 .- After section 4 of the principal Act, the following new section shall be inserted, namely: - 4A. Changes in managing body and rules to be filed .-(1) Together with the list mentioned in section 4, there shall be sent to the Registrar of Joint Stock Companies a statement showing changes during the year to which the list relates in the personnel of the g overnors, council, directors, committee or other governing body to whom the management of the affairs of the society is entrusted and also a copy of the rules of the society corrected up -to-date and certified to be a correct copy by not less than three of the members of the governing body. (2) A copy of every alteration made in the rules of the society, certified to be a correct copy by not less than three members of the governing body, shall be sent to the Registrar of Joint Stock Companies within fifteen days of the making of such alterations. [Vide Assam Act 11 of 1952, s. 2] Orissa Insertion of new sections 4 -A, 4-B and 4 -C, Act (21 of 1860) .In the Societies Registration Act, 1860 (21 of 1860) (hereinafter referred to as the principal Act) after section 4, the following new sections shall be inserted, namely: - 4-A Changes in the list mention 4 and rules to be filed .(1) Without prejudice to the provisions of section 4 any change in personnel on the list filed under the said section occurring duri ng the year to which such list relates shall be intimated to the Registrar or S ocieties within two months of such change. (2) A copy of every alteration made in the rules and regulations of the Society, certified to be a correct copy by not less than three of the Govern ors, Directors or Members of the governing body, as the case may be, shall be sent to the Registrar or Societies within two months of the making of such alteration. 4-B. Persons by whom lists, etc ., are to be sent .It shall be the duty (a) Of the Chairman or, as the case may be, the President, the Secretary or any other person authorized in that behalf by the rules and regulations of the Society or by a resolution of the governing body of the Society; or (b) Of the Chairman or, as the case m ay be, the President of the governing body of the Society where is no such authorization, to file the list mentioned in section 4, or to send the intimation or as the case may be, the copy mentioned in section 4 -A to the Registrar of Societies. 4-C. Offenc e.(1) If any person who is required so do to under the preceding section fails without reasonable cause to comply with the provisions thereof, he shall, on conviction, be punishable with fine which may extend to one hundred rupees. (2) If any person willf ully makes or causes to be made any false entry or alternation in, or any omission from, the list filed under section 4 or any statement or copy of rules and regulations sent to the Registrar of Societies under section 4 -A, he shall, on conviction, be puni shable with fine which may extend to five hundred rupees. [Vide the Orissa Act 8 of 1969, s. 2] Union territory of Ladakh Section 4 .For "Registrar of Joint -Stock Companies", substitute "Registrar of Societies". Insertion of new sections After section 4, insert t he following sections, namely: 10 "4A. Changes in list mentioned in section 4 and rules to be filed. -(1) Without prejudice to the provisions of section 4 and change in personnel on the list filed under said section occurring during the year to which such list relates shall be intimated to the Registrar of Societies within two months of the making of such changes. (2) A copy of every alteration made in the rules and regulation of the society, certified to be a correct copy by not less than three of the Governors, Directors or members of governing body, as the case may be, shall be sent to the Registrar of Societies within two months of such alteration. 4B. Persons by whom lists, etc., are to be sent. -It shall be the duty -- (a) of the Chairman or, as the case may be, the President, the Secretary or any other person authorised in that behalf by the rules and regulations of the society or by a resolution of the governing body of the society; or (b) of the Chairman, or as the case may be, the President of th e governing body of the society where there is no such authorisation, to file the list mentioned in section 4 or to send the intimation, or as the case may be, the copy mentioned in section 4A to the Registrar of Societies. 4C. Offence. -(1) If any person w ho is required so to do under the preceding section fails without reasonable cause to comply with the provisions thereof, he shall, on conviction, be punishable with fine which may extend to one thousand rupees. (2) If any person wilfully makes or causes t o be made any false entry or alteration in, or any omission from, the list filed under section 4 or any statement or copy of rules and regulations sent to the Registrar of Societies under section 4A, he shall on, conviction, be punishable with fine which m ay extend to five thousand rupees.". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S .O.3805(E), dated (26 -10-2020).] Arunachal Pradesh After section 4, the following section shall be inserted, namely: - 4A. Change in Managing Body and rules to be file s.(1) Together with the list mentioned, in section 4, there shall be sent to the Registrar a statement showing changes during the year to which the list relates in the personnel of the Go vernor, council, directors, committee or other governing body to whom the management of the affairs of the societies is entrusted and also a copy of the rules of the society corrected up -to-date and certified to be a correct copy by not less than three mem bers of the governing body. (2) A copy of every alteration made in the rules of the society certified to be a correct copy by not less than three members of the governing body, shall be sent to the Registrar within fifteen days of the making of such alteration. [Vide Arunachal Pradesh Act 6 of 1978, s. 2 and the schedule] Haryana Amendment of Section 4 of Central Act 21 of 1860. In Section 4 of the principal Act, the following words shall be added at the end, namely : "There shall be paid to the Re gistrar for every list a fee of ten rupees.". [Vide Haryana Act 14 of 2001, s. 3] 5. Property of society how vested. The property, movable and immovable, belonging to a society registered under this Act, if not vested in trustees, shall be deemed to be ves ted, for the time being, in the governing body of such society, and in all proceedings, civil and criminal, may be described as the property of the governing body of such society by their proper title. 11 STATE AMENDMENT Uttarakhand Insertion of section 5A.In Principal Act after section 5 the following section shall be inserted, namely: -- 5A. Restriction on transfer of property .---(1) Notwithstanding anything contained in any law, contract or other instrument, it shall not be lawful for the governing bo dy of a society registered under this Act or any of its members to transfer, without the previous approval of the court, any immovable property belonging to any such society. (2) Every transfer made in contravention of sub -section (1) shall be void. Explan ation I.For the purposes of this section the word court shall have the meaning assigned to it in section 13. Explanation II.For the purposes of this section the word transfer means (d) a mortgage, charge, sale, gift or exchange. (e) lease for term e xceeding five years; or (f) irrevocable licence. [Vide Uttarakhand Act 4 of 2019, s. 4] Omission of section 5 -A of Act no. 21 of 1860 .Section 5 -A of the Societies Registration Act, 1860 shall be omitted. [Vide Uttarakhand Act 23 of 2014, s. 2] 6. Suits by and against societies. Everysociety registered under this Act may sue or be sued in the name of the president, chairman, or principal secretary, or trustees, as shall be determined by the rules and regulations of the society, and, in default of such det ermination, in the name of such person as shall be appointed by the governing body for the occasion: Provided that it shall be competent for any person having a claim or demand against the society, to sue the president or chairman, or principal secretary o r the trustees thereof, if on application to the governing body some other officer or person be not nominated to be the defendant. 7. Suits not to abate. Nosuit or proceeding in any Civil Court shall abate or discontinue by reason of the person, by or agai nst whom such suit or proceedings shall have been brought or continued, dying or ceasing to fill the character in the name whereof he shall have sued or been sued, but the same suit or proceeding shall be continued in the name of or against the successor o f such person. 8. Enforcement of judgment against society. Ifa judgment shall be recovered against the person or officer named on behalf of the society, such judgment shall not be put in force against the property, movable or immovable, or agains t the body of such person or officer, but against the property of the society. The application for execution shall set forth the judgment, the fact of the party against whom it shall have been recovered having sued or having been sued, as the case may be, o n behalf of the society only, and shall require to have the judgment enforced against the property of the society. 9. Recovery of penalty accruing under bye -law.Wheneverby any bye -law duly made in accord ance with the rules and regulations of the society, or, if the rules do not provide for the making of bye-laws, by any bye -law made at a general meeting of the members of the society convened for the purpose (for the making of which the concurrent votes of three -fifths of the members present at such meeting shall be necessary), any pecuniary penalty is imposed for the breach of any rule or bye -law of the society, such penalty, when accrued, may be recove red in any Court having jurisdict ion where the defendant shall reside, or the society shall be situate, as the governing body there of shall deem expedient. 10. Members liable to be sued as strangers. Anymember who may be in arrear of a subscription which according to the rules of the society he is bound to pay, or who shall possess himself of or detain any pr operty of the society in a manner or for a time contrary to such rules, or shall injure or destroy any 12 property of the society, may be sued for such arrear or for the damage accruing from such detention, injury, or destruction of property in the manner her einbefore provided. Recovery by successful defendant of costs adjudged. Butif the defendant shall be successful in any suit or other proceeding brought against him at the instance of the society, and shall be adjudged to recover his costs, he may elect to proceed to recover the same from the officer in whose name thesuit shall bebrought, or from the society, and in the latter case shall have process against the property of the said society in the manner above described. 11. Members guilty of offences punish able as strangers. Anymember of the society who shall steal, purloin or embezzle any money or other property, or wilfully and maliciously destroy or injure any property of such society, or shall forge any deed, bond, security for money, receipt, or other instrument, whereby the funds of the society may be exposed to loss, shall be subject to the same prosecution, and, if convicted, shall be liable to be punished in like manner, as any person not a member would be subject and liable to in respect of the like offence. 12. Societies enabled to alter, extend, or abridge their purposes. Whenever it shall appear to the governing bo dy of any society registered under this Act, which has been established for any particular purpose or purposes, that it is advisable to alter, extend, or abridge such purpose to or for other purposes within the meaning of this Act, or to amalgamate such so ciety either wholly or partially with any other society, such governing body may submit the proposition to the members of the society in a written or printed report, and may convene a special meeting for the consideration thereof according to the regulatio ns of the society; but no such proposition shall be carried into effect unless such report shall have been delivered or sent by post to every member of the society ten days previous to the special meeting convened by the governing body for the consideratio n thereof, nor unless such proposition shall have been agreed to by the votes of three -fifths of the members delivered in person or by proxy, and confirmed by the votes of three - fifths of the members present at a second special meeting convened by the gove rning body at an interval of one month after the former meeting. STATE AMENDMENT Assam Insertion of new sections 12A,12B and 12C in Act XXI of 1860. - After section 12 of the Societies Registration Act, 1860 (XXI of 1860), the following shall be inserted, n amely :-- "12A. Change of name .--Any society registered under this Act may, with the consent of not less than two -thirds of the total number of its members' by a resolution at a general meeting convened for the purpose and subject to the

than two -thirds of the total number of its members' by a resolution at a general meeting convened for the purpose and subject to the provisions of secti on 12B, change its name. 12B. Notice of change of name .--(1) Notice in writing of every change of name, signed by the Secretary and, by seven members of the society changing its name, shall be sent to the Registrar; (2) If the proposed name is identical with that by which any other existing society has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public, the Registrar shall refuse to register the change of name. (3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name and the change of name shall have effect from the date of such registration. 12C. Eff ects of change of name .--The change in the name of a society registered under this Act shall not affect any rights or obligations of the society or render defective any legal proceeding by or against the society, and any legal proceeding which might have b een continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name". [Vide Assam Act 14 of 1948, s. 2] 13 Orissa Amendment of a section 12, Act (21 of 1860) .In section 12 of the principal Act (a) i n the first paragraph after the words any other society the words or whenever the governing body of any such society decides to change the name of the society shall be inserted; (b) after the second paragraph the following proviso shall be inserted, n amely: Provided that no proposition for amalgamation shall be carried into effect unless it has been considered, agreed to and confirmed by all the concerned societies in the manner prescribed in this section. [Vide the Orissa Act 8 of 1969, s. 3] Orissa Insertion of new sections 12 -A, 12 -B and 12 -C, Act 21 of 1860. After section 12 of the principal Act the following new sections shall be inserted, namely: 12-A. Registration of change of name .(1) Where a proposition for change of name has been agreed to and confirmed in the manner prescribed by section 12, a copy of the proposition so agreed to and confirmed shall be forwarded to the Registrar of Societies for registering the change of name . If the proposed name is identical with that by which any other existing society has been registered or in the opinion of the Registrar so nearly resembles the name of such other society as is likely to deceive the public or the members of either society, the Registrar shall refuse to register the change of name . (2) Save as provided in sub -section (1), the Registrar shall, if he is satisfied that the provisions of this Act in respect of the change of name have been complied with, register the change of name and issue a certificate of registration altered to meet the circumstances of the case. On the issue of such certificate the change of name shall be complete. (3) The Registrar shall charge for any copy of a certificate issued under sub -section (2) a fee of rupee one and all fees so paid shall be accounted for to the State Government. 12-B. Effect of change of name .The change in the name of a society shall not affect any rights or obligations of the society or render defective any legal proceeding by or against the society; and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by the new name. 12-C. Registration of change of name effected before commencement of the societies Registration Amendment .If any society r egistered under this Act has, before the date of the coming into force of the Societies Registration (Orissa Amendment) Act, 1969 intimated to the Registrar the change of its name and if the Registrar has recorded such change the Registrar may, notwithstan ding anything contained in this Act, on an application made by the society in this behalf and on payment of fees as provided in sub -section (3) of section 12 -A register the change of such name and issue a certificate to the society under sub -section (2) of the said section. On the issue of such certificate the change shall be deemed to be complete from the date on which such change was recorded by the Registrar. [Vide the Orissa Act 8 of 1969 , s. 4] Orissa Amendment of section 12A. In the principal Act, in section 12A, (a) for sub -section (1), the following sub -sections shall be substituted, namely: 14 (1) Where a proposition for change of name has been agreed to and confirmed in the manner prescribed by section 12, a copy of the proposition so agreed to an d confirmed shall be forwarded to the Registrar of Societies for registering the change of name. (1A) The Registrar of Societies may refuse to register the change of name, if he is of the opinion that the proposed change of name is undesirable for any o f the reasons mentioned in section 3A.. (b) after sub -section (3), the following sub -section shall be inserted, namely: (4) if, through inadvertence or otherwise a society is registered by a name which is identical with or, which in the opinion of the Registrar of Societies so nearly resembles the name by which any other existing society has been previously registered under this Act or any body corporate which has been incorporated or registered under any other law for the time being in force or any body constituted by the Government or any local authority the Registrar of Societies may after hearing the party concerned direct the society to change the name and the society shall change its name within a period of three months from the date of i ssue of the direction in accordance with the provisions of this Act, or such longer period as the Registrar of Societies may think fit to allow.. [Vide the Orissa Act 6 of 2013, s. 3] Insertion of a new section .In the principal Act, after section 12 -C, the following section shall be inserted, namely: 12-D. Registrars power to cancel registration in certain circumstance .(1) Notwithstanding anything contained in this Act, the Registrar may, be order in writing , cancel the registration of any societ y on any of the following grounds, namely: (a) the registration of the society, or its name or change of name is contrary to the provisions of this Act or of any other law for the time being in force; or (b) its activities or, opposed activities have be en, or are subversive of the objects of the society or proposed to public policy; or (c) the registration certificate has been obtained by misrepresentation of fact or fraud; or (d) the society fails to comply the direction issued under sub -section (4) of section 12 -A: Provided that no order of cancellation of registration of any society shall be passed until the society has been given a reasonable opportunity of altering its name or objects or of showing cause against the action proposed to be taken in regard to it.. [Vide the Act Orissa Act 6 of 2013, s. 4] Union territory of Ladakh Section 12. (i) after "any other society", insert "or whenever the governing body of any such society decides to change the name of the society"; and (ii) after the words "after the formal meeting" insert -- "Provided that no proposition for amalgamation shall be carried into effect unless it has been considered, agreed to and confirmed by all concerned societies in the mann er prescribed in this section. . 15 Insertion of new secti ons After section 12, insert "12A. Registration of change of name. -(1) Where a proposition for change of name has been agreed to and confirmed in the manner prescribed by section 12, a copy of the proposition so agreed to and confirmed shall be forwarded to the Registrar for registering the change of name and if the proposed change in the name is in his opinion undesirable for any of the reasons mentioned in section 3A, the Registrar shall refuse to register the change of name. (2) Save as provid ed in sub -section (1), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name and issue a certificate of registration altered to meet the circumstances of th e case, and on the issue of such a certificate the change of name shall be complete. (3) The Registrar shall charge for any copy of a certificate issued under sub -section (2), a fee of rupee five hundred and all fees so paid shall be accounted for to the A dministration of the Union territory of Ladakh. (4) If, through inadvertence or otherwise, a society is registered by a name which should not have been registered (due regard being had to the provisions of section 3A), the Registrar may, after hearing the party concerned direct the society to change the name; and the society shall change its name within a period of three months from the date of the direction in accordance with the provisions of this Act, or such longer period as the Registrar may think fit to allow. 12B. Effect of change of name. -The change in the name of society shall not affect any rights or obligations of the society or render defective any legal proceeding by or against the society and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name. 12C. Maintenance of accounts and their balancing and accounting. -(1) Every governing body entrusted with the management of the affairs of a so ciety registered under this Act shall keep regular accounts. (2) Such accounts shall be kept in such form as may be approved by the Registrar, and shall contain such particulars as may be prescribed by rules. (3) The accounts shall be balanced each year on the 31st day of March or such other day as may be fixed by the Registrar. (4) The accounts shall be audited annually in such manner as may be prescribed by rules and by a person who is a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), or by such persons as may be authorised in this behalf by the Administration of the Union territory of Ladakh. 12D. Auditor's duty to prepare balance sheet and report irregularities, etc. -(1) It shall be the duty of every auditor a uditing the accounts of a society under section 12C to prepare balance - sheet and income and expenditure account and to forward a copy of the same to the Registrar. (2) The auditor shall in his report specify all cases of irregular, illegal or improper expe nditure or failure or omission to recover money or other property belonging to the society or of loss or waste of money or other property thereof, and state whether such expenditure, failure, omission, loss or waste was caused in consequence of branch of t rust or misapplication or any other misconduct on the part of the govern ing body or any other person.". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S .O.3805(E), dated (26-10-2020 ).] 16 Arunachal Pradesh After section 12, the following sections shall be inserted namely: 12A. Change of name .A society registered under this Act may, with the consent of not less than two-thirds of the total number of its members, by a resolution, at a gene ral meeting convened for the purpose and subject to the provisions of section 12B change its name. 12B. Notice of change of name. (1) Notice in writing of every change of name, signed by the Secretary and by seven members of the society, shall be sent to the Registrar. (2) If the proposed name is identical with that by which any other existing society has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public, the Registrar shall refuse to register the change of name. (3) Save as provided in sub -section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name shall have been complied with, register the change of name and the change of name sha ll have effect from the date such registration.. 12C.Effect of change of name .The change in the name of a society registered under this Act shall not effect any right or obligation of the society or render defective any legal proceeding by or against the society and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its changed name. [Vide Arunachal Pradesh Act 6 of 1978, s. 2 and the Schedule ] Haryana Insertion of section 12C , 12D and 12 E in Central Act 21 of 1 860.After section 12B of the principal Act, the following sections shall be inserted, namely: "12C. Maintenance of accounts and their balancing and auditing .(1) Every governing body entrusted with the management of the affairs of a society registered under this Act shall keep regular accounts. (2) The accounts shall be kept in such form as may be approved by the Registrar, and shall contain such particulars as may be prescribed. (3) The accoun ts shall be balanced each year on the 31st day of March or on such other day as may be fixed by the Registrar. (4) The accounts shall be audited annually in such manner as may be prescribed and by a person who is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (Act 38 of 1949) , or by such person as may be authori zed in this behalf by the State Government. 12D. Auditor's duty to prepare balance sheet and report irregularities, etc .(1) It shall be the duty of every auditor auditing the accounts of a society under section 12C to prepare balance sheet and income and expenditure account and to forward a copy of the same to the Registrar. (2) The auditor shall in his report specify all cases of irregular, illegal or improper exp enditure or failure or omission to recover money or other property belonging to the society or of loss or waste of money or other property thereof, and state whether such expenditure, failure, omission, loss or waste caused in consequence of breach of trus t or misapplication or any other misconduct on the part of the governing body or any other person. 12E. Registrar's power to cancel registration in certain circumstances .(1) Notwithstanding anything contained in this Act, the Registrar may, by order in wr iting cancel the registration of any society on any of the following grounds: --

, the Registrar may, by order in wr iting cancel the registration of any society on any of the following grounds: -- (a) that the registration of the society or of its name or change of name is contrary to the provisions of this Act or of any other law for the time being in force; (b) that it s activities or proposed activities have been or are or will be subversive of the objects of the society or opposed to public policy; 17 (c) that the registration certificate has been obtained by misrepresentation or fraud; (d) that the society is carrying on any unlawful activity or allows unlawful activity to be carried on within any premises under the control of the society : Provided that no order of cancellation of registration of any society shall be passed until the society has been given a reasonable opportunity of altering its name or object or of showing cause against the action proposed to be taken in regard to it. (2) An appeal against an order made under sub -section (1) may be preferred to such authority and within such time and in such manner as may be prescribed. (3) The decision of the authority under sub -section (2), shall be final.". [Vide Haryana Act 14 of 2007, s. 4] 13. Provision for dissolution of societies and adjustment of their affairs. Anynumber not less than three -fifths of the member s of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities, according to the rules of the said society applicable thereto, if any, and, if not, then as the governing body shall find expedient provided that, in the event of any dispute arising among the said governing body or the members of the society , the adjustment of its affairs shall be referred to the principal Court of ori ginal civil jurisdiction of the district in which the chief building of the society is situate; and the Court shall make such order in the matter as it shall deem requisite: Provided that no society shall be dissolved unless three -fifths of the members shall have expressed a wish for such dissolution by their votes delivered in person, or by proxy, at a general meeting convened for the purpose: Provided that 1[whenever any Gover nment] is a member of, or a contributor to, or otherwise interested in any society registered under this Act, such society shall not be dissolved 2[without the consent of the Government of the State of registration]. STATE AMENDMENT Assam Amendment of section 13 of Act XXI of 1860 .- In section 13 of the said Act, -- (a) after the words "as the governing body" the words "or special Committee formed to replace the governing body in respect of all matters affecting the winding up of the affairs of the Society ;" shall be inserted; (b) after the words "the said governing body" the words "should it not have been replaced by the aforesaid special Committee in respect of all matters affecting the winding up of the Society , or the said special Committee , shall be inserted. (2) After section 13 of the Act, the following proviso shall be inserted as the first proviso, namely: - Provided that any matter decided by three -fifths of those present either in person or by proxy at any meeting of the mem bers of the Society or of the governing body thereof or of any special Committee appointed at a General Meeting for the purpose of winding up of the affairs of a Society shall not be deemed to be a matter of dispute within the meaning of this section. [Vide Assam Act 15 of 1948, s. 2] 1. Subs. by the A.O. 1937, for whenever the Government. 2. Subs., ibid,.for without the consent of Government. 18 Arunachal Pradesh In section 13 :-- (a) after the words as the governing body, the words or special committee formed to replace the governing body in respect of all matters affecting the winding up of the affairs of the society shall be inserted; (b) after the words the said governing body, the words should it have not been replaced by the aforesaid special committee in respect of all matters affecting the winding up of the society , or the said special committee shal l be inserted; (c) in the second proviso, for the words Government of the State of registration, the word Administrator shall be substituted; (d) after the second proviso, the following further proviso shall be inserted, namely: -- Provided further th at any matter decided by three -fifth of those present either in person or by proxy at any meeting of the members of the society or of any governing body thereof or of any special committee appointed at a general meeting for the purpose of winding up of the affairs of a society shall not be deemed to be a matter of dispute within the meaning of this section. [Vide Arunachal Pradesh Act 6 of 1978, s. 2 and the Schedule ] 14. Upon a dissolution no member to receive profit. If upon the dissolution of any society registered under this Act there shall remain after the satisfaction of all its debts and liabilities any property whatsoever, the same shall not be paid to or distributed among the members of the said society or any of them, but shall be given to s ome other society, to be determined by the votes of not less than three -fifths of the members present personally or by proxy at the time of the disso lution, or, in default thereof, by such Court as aforesaid: Clause not to apply to Joint -stock Companies. Provided, however, that this clause shall not apply to any society which shall have been founded or established by the contributions of shareholders in the nature of a Joint -stock Company. STATE AMENDMENT Assam Amendment of section 14 of Act XXI of 1860 .In section 14 of the said Act, after the words some other society, the words whether registered under this Act or not, shall be inserted. [Vide Assam Act 15 of 1948, s. 3] Tripura Amendment of Central Act XXI of 1860 by inserting a new section 14A In its application to the Union territory of Tripura, after section 14 insert the following new section, namely 14A. Disposal of property of a dissolved society .Notwithstanding anything contained in section 14 it shall be lawful for the members of any soc iety dissolved under section 13 to determine by a majority of the votes of the members present personally or by proxy at the time of the dissolution of such society that any property whatsoever remaining after the satisfaction of all the debts and liabilit ies shall be given to the Government of Tripura to be utilised for any of the purposes referred to in section 1. [Vide Tripura Act 5 of 1969, s. 2] 15. Member defined. Disqualified members. For the purposes of this Act a member of a society shall be a per son who, having been admitted therein according to the rules and regulations thereof, shall have paid a subscription, or shall have signed the roll or list of members thereof, and shall not have resigned in accordance with such rules and regulations; but i n all proceedings under this Act no person shall be entitled to vote or be counted as a member whose subscription at the time shall have been in arrear for a period exceeding three months. 16. Governing body defined. The governing body of the society shall be the governors, council, directors, committee, trustees or other body to whom by the rules and regulations of the society the management of its affairs is entrusted. 19 STATE AMENDMENT Haryana Amendment of section 16 of Central Act 21 of 1860. In section 16 of the principal Act, after the words and signs "committee, trustees,", the words "trustee mandal" shall be inserted. [Vide Haryana Act 14 of 2007, s. 5] Insertion of section 16A in Central Act 21 of 1860. After section 16 of the principal Act, the following section shall be inserted, namely: -- "16A. Duties, functions and powers of governing body . The duties, functions and powers of governing body of the society shall be such as may be prescribed." . [Vide Haryana Act 14 of 2007, s. 6] 17. Regis tration of societies formed before Act. Any company or society established for a literary, scientific, or charitable purpose, and registered under 1Act 43 of 1850, or any such society established and constituted previously to the passing of this Act but no t registered under the said 3Act 43 of 1850, may at any time hereafter be registered as a society under this Act; subject to the proviso that no such company or society shall be registered under this Act unless an assent to its being so registered has been given by three -fifths of the members present personally, or by proxy, at some general meeting convened for that purpose by the governing body. In the case of a compa ny or society registered under 3Act 43 of 1850, the directors shall be deemed to be such g overning body. In the case of a society not so registered, if no such body shall have been constituted on the establishment of the society, it shall be competent for the members thereof, upon due notice, to create for itself a governing body to act for the society thenceforth. 18. Such societies to file memorandum, etc., with Registrar of Joint -stock Companies. In order to any such society as is mentioned in the last preceding section obtaining registry under this Act, it shall be sufficient that the govern ing body file with the Registrar of Joint -stock Companies 2*** a memorandum showing the name of the society, the objects of the society, and the names, addresses and occupations of the governing body, together with a copy of the rules and regulations of th e society certified as provided in section 2, and a copy of the report of the proceedings of the general meeting at which the registration was resolved on. STATE AMENDMENT Union territory of ladakh Section 18 .For "Registrar of Joint -Stock Companies", subst itute "Registrar of Societies". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S .O. 3805(E), dated (26-10-2020 ).] 19. Inspection of documents, Certified copies. Any person may insp ect all documents filed with the Registrar under this Act on payment of a fee of one rupee for each inspection; and any person may require a copy or extract of any document or any part of any document, to be certified by the Registrar, on payment of two an nas for every hundred words of such copy or extract; and such certified copy shall be prima facie evidence of the matters therein contained in all legal proceedings whatever. STATE AMENDMENT Union territory of ladakh Section 19. For "Registrar", substitute "Registrar of Societies". 1. Rep. by the Indian Companies Act, 1866 (10 of 1866), s. 719, see now the Companies Act, 1956 (1 of 1956). 2. The words and figures under Act 19 of 1857, rep. by Act 16 of 1874, s. 1 and the Schedule, Pt. 1, see now the Companies Act, 1956 (1 of 1956). 20 [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Second Order, 2020, vide Notification No. S .O. 3805(E), dated (26-10-2020 ).] Arunachal Pradesh In section 19, for the words two annas, the words fifteen paise shall be substituted. [Vide Arunachal Pradesh Act 6 of 1978, s. 2 and the Schedule ] Uttarakhand Substitution of section 19. In Principal Act section 19 shall be substituted as follows, nam ely:-- 19. Inspection of documents, Certified copies. Any person may inspect all document files with the Registrar under this act on payment of a fee of thee hundred rupees for each inspection ; and any person may require a digitally signed copy or extract of any documents or any part of any document or any part of any document s, to be digitally certified by the Registrar on payment of rupees one hundred as ordinary fee and rupees two such copy or extract and digital signed copy shall prima facie evidence of the matters therein contained in all legal proceedings whatever. Provided further that the State Government may, by notification in the Official Gazette, increase from time to time the fee payable under this sub -section. [Vide Uttarakhand Act 4 of 2019, s. 5] Haryana Amendment of Section 19 of Central Act 21 of 1860. In Section 19 of the principal Act, (i) for the words "one rupee", the words "twenty rupees" shall be substituted ; and (ii) for the words "twenty -five naye paise for every hundred words", the words "ten rupees per page or part thereof shall be substituted. [Vide Haryana Act 14 of 2001, s. 4] 20. To what societies Act applies. The following societies may be registered under this Act: Charitable societies, the military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge,1[the diffusion of political education ] the foundation or maintenance of libraries or reading -rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collections of natural history, mechanical and philosophical inventi ons, instruments, or designs. STATE AMENDMENT Assam Insertion of new sections 21 and 22 in Act XXI of 1860 .After section 20 of the principal Act, the following new section shall be inserted, namely: 21. Penalties .(1) if the President, Secretary or any other person authorized in this behalf by a resolution of the governing body of the society fails to comply with the provisions of section 4, he shall, on conviction, be punishable with fine which may extend to five hundred rupees a nd in case of a continu ing brea ch, shall also be punishable with fine not exceeding fifty rupees for each day, during the period the breach continues after fi rst conviction for such offence . (2) If any person willfully makes or causes to be made any false entry in, or any

rst conviction for such offence . (2) If any person willfully makes or causes to be made any false entry in, or any omissi on from, the list required by section 4, or in or from any statement of copy of rules or of alterations in rules sent to the Registrar of Joint Stock Companies under sec tion 4A, he shall, on conviction, be punishable with fine which may extend to two thous and rupees. 1. Ins. by Act 22 of 1927, s. 2. 21 Haryana Insertion of section 22 to 32 in Central Act 21 of 1860 . After section 21 of the principal Act, the following sections shall be added at the end, namely: "22. Power of Registrar to call for information .(1) The Registrar may , by written order, require any society to furnish in writing such information or document within such time, being ordinarily not less than three weeks from the date of receipt of the order by the society, as he may specify in the order in connection with t he affairs of the society or any documents filed by the society under this Act . (2) On receipt by the society of an order under sub -section (1), it shall be the duty of the President, Secretary or any other person authorized in this behalf to furnish such information or documents. 23. Investigations of affairs of society . (1) Where on the information received under section 22 or otherwise, the Registrar is of opinion that there is apprehension that the affairs of a society registered under this Act are being so conducted as to defeat the objects of the society or that the society or its governing body by whatever name called, or any offic e-bearer thereof in actual effective control of the society is guilty of mismanaging its affairs or of any breach of fidu ciary or other like obligations, the Registrar may, either himself or by any person authorized by him in that behalf, inspect or investigate into the affairs of the society or inspect any institution managed by the society. (2) It shall be the duty of ever y office -bearer of the society when so required by the Registrar or other person authori sed under sub-section (1) to produce any books of account and other records of or relating to the society which are in his custody and to give him all assistance in con nection with such inspection or investigation. (3) The Registrar or other person authorized under sub -section (1) may call upon and examine on oath any office -bearer, member or employee of the society in relation to the affairs of the society and it shall be the duty of every office -bearer, member or employee, when called upon, to appear before him for such examination. (4) The Registrar or other person authorized under sub -section (1) may, if in his opinion it is necessary for the purpose of inspection or investigation, seize any or all the records including account books of the society: Provided that any person from whose custody such records are seized shall be entitled to make copies thereof in the presence of the person seizing such records. (5) On the conclusion of the inspection or investigation, as the case may be, the person, if any, appointed by the Registrar to inspect or investigate shall make a report to the Registrar on the result of his inspection or investigation. (6) The Registrar may, after such inspection or investigation, give such directions to the society or to its governing body or any office -bearer thereof, as he may think fit , for the removal of any defects or irregularities within such time es may be specified and in the event of defa ult in taking action according to such directions, the Registrar may proceed to take action under section 12E or section 30, as the case may he. 24. Disputes regarding election of office -bearers .(1) The prescribed authority may, on a reference made to it by the Registrar or by at least one -fourth of the members of a society registered in Haryana, beat and decide in a summary man ner any doubt or dispute in respect of the election or continuance in office of an office -bearer of such of society, and may pass such orders -in respect thereof it deems fit: Provided that the election of an office -bearer shall b e set aside where the prescribed authority is satisfied (a) that any corrupt practice has been committed by such office bearer; or (b) that the nomination of any candidate has been improperly rejected; or 22 (c) that the result of the election insofar as it concerns to such office -bearer has been materially affected by the improper acceptance of any nomination or by the improper reception, refusal or rejection of any vote or the reception of any vote which is void or by any non - compliance with the provisions of any rules of the society. Explanation I. A person shall be deemed to have committed a corrupt practice who, directly or indirectly, by himself or by any other person , (i) induces, or attempts to induce, by fraud, intentional misrepresentation, coercion or threat of injury, any elector to give on to refrain from giving a vote in favour of any candidate, or any person to stand or not to stand as , or to withdraw or not to withdraw from being a candidate at the election; (ii) with a view to inducing any elector to give or to refrain from giving a vote in favour of any candidate, or to inducing any person to stand or not to stand as, or to withdraw or not to withdraw from being a candidate at the election, offers or gives any money , or valuable consideration, or any place or employment, or holds out any promise of individual advantage or profit to any person; (iii) abets (within the meaning of the Indian Penal Code) the doing of any of the acts specified in clauses (i) and (ii); (iv) induces or attempts to induce ni candidate or elector to believe that he, or any person in whom he is interested, will become or will be rendered an object of divine di spleasure or spiritual censure; (v) canvasses on grounds of caste, community, sect or religion; (vi) commits such other practice as the State Government may prescribe to be a corrupt practice. Explanation II. -- A promise of individual advantage or profit to a person includes a promise for the benefit of the person himself, or of anyone in whom he is interested. Explanation III.--- The State Government may prescribe the procedure for hearing and decision of doubts or disputes in respect of such elections and make provision in respect of any other matter relating to such elections for which insufficient provision exists in this Act or in the rules of the society. (2) Where by an order made under sub -section (1) an election is set aside or an office -bearer is held no longer entitled to continue in notice or where the Registrar is satisfied that any election of office bearers of a society has not been held within the time specified in the rules of that society, he ma y call a meeting of the genera l body of such society for electing such office bearer or office -bearers, and such meeting shal1 be presided over and be conducted by the Registrar or by any officer advisory by him in this behalf, and the prescribe the rules of the s ociety relating to meetings and elections shall apply to such meeting and election with necessary modifications. (3) Where a meeting is called by the Registrar under sub -section (2), no other meeting shall be called for the purpose of electi on by any other authority or by any person claiming to be an office -bearer of the society. Explanat ion. For the purposes of this section, the expression 'prescribed authority' mean, an officer or court authorized in this behalf by the State Government by notification published in the Official Gazette . 25. Terms of gift to be observed. Where a society accepts a gift or nation of money or property of any other kind from any person for a specific purpose, it shall not use the money or other property gifted or donated or any part thereof for any other purpose except for the promotion of the activities of the society. 26. Penalties. Any society which (a) fails to furnish the list of managing body or other information required to be furnished under section 22 or wilfully makes or causes to be made a false entry in, or any omission from, the list or 23 any statement or copy of rules or of alteration in rules or other information sent to the Registrar under the said section ; (b) wilfully fails, neglects or refuses to maintain, balance and audit accounts as referred to in section 12C ; (c) wilfully fails to produce any books of accounts or other records as required by sub -section (2) of section 23; (d) wilfully fails to appear before the Re gistrar or other person authorised by him or otherwise contravenes the provisions of sub -section (3) of section 23; shall be punishable with fine which may extend to five thousand rupees. 27. Compounding of offences. (1) The Registrar may accept from any person against whom a reasonable suspicion exists that he has committed any offence punishable under section 26 or against whom a prosecution under that s ection has b een instituted, a sum of money by way of composition fee for the offence which such person is suspect or accused to have committed. (2) On the payment of such composition fee the suspected person shall be discharged and no further proceedings shall be taken against him, and if persecution of such composition shall have the effect of his acquit tal. 28. Manner of payment of fees. Fees payable under the provisions of this Act shall be paid in such manner as may be prescribed. 29. Mode of service of notice by Registrar. (1) Any notice, order or requisition mean s for a society or for the governing body thereof to be issued by the Registrar may be served on the Secretary of the society, and service on the Secretary shall be as effectual as if the same had been served on every member of the society or, as the case may be, on every member of the governing body thereof, unless the Registrar otherwise directs. (2) The sending of such notice, order or requisition to the Secretary of the society by registered post at its registered office shall amount to sufficient service ther eof on the society. 30. Appointment of Administrator. (1) Where on receipt of a complaint from three office - bearers of a society or three affected persons or on inspection of records, the Registrar is satisfied, --- (i) that the society is working against the objectives and ideals as per sections 1 and 20 on the basis of which the society was granted certificate; (ii) that the society is not working democratically or the elections have not taken place within the speci fied time or election taken place fraudulently or against the clauses of memorandum of associ ation; (iii) that the office -bears have been nominated against the clause of memorandum of association; (iv) that the number of members in a trustee mandal has been purposely kept below seven, the Registrar may recommend to the State Govern ment to appoint an Administrator : Provided that no adverse order shall be passed unless an opportunity of being heard has been given to the conce rned society: Provided further that the action of the Registrar in this behalf shall be final a nd no appeal shall lie in any court against such action. (2) The State Government may, by order published in the Official Gazette, shall appoint an Administrator of such society who shall not be below the rank of Deputy Secretary for such period, not exceeding six months , as may be specified in the order to manage the affairs of the society : Provided that for reasons to be recorded in writing, the State Government may, by like order, extend the said period for a fu rther duration of six months. 24 (3) On the appointment of the Administrat ion under sub -section (2), the governing body of the society shall cease to exercise any powers and perform and discharge any functions or duties conferred or imposed on it by this Act, or its memorandum of association or the rules and regulations of any other law and subject to any directions which the State Government may from time to time issue, all such functions or duties shall be performed or discharged by the Administrator. (4) The Administrator shall, before the exp iry of the period of his appointment, take necessary action to convene the general body meeting of the society and hold election for the constitution of the governing body. (5) If the Administrator is not, for reasons beyond his controlable to convene the general body meeting or inspite of such meeting being convened the general body fails to elect the governing body, the Administrator shall forthwith send a report to the State Government who may pass such orders as are considered necessary, either extendin g the period of appointment of the Administrator for a further duration or if satisfied that public interest so requires, for the dissolution of the society. (6) The State Government may, if it thinks fit, appoint a committee to advise and assist the Admin istrator appointed under sub-section ( 1) in the exercise of the powers and performance and discharge of the duties and functions conferred or imposed on him under this Act. The members of the committee shall have such qualifications as may be prescribed and shall hold office during the pleasure of the State Government. (7) Where an order of dissolution is passed under sub -section (5), the assets of the society shall vest in and the liabilities shall devolve on the State Government. 31. indemnity . No suit , prosecution or other legal proceedings shalt lie in any court against the State Government, the Registrar or against any person appointed for inspection or investigation under section 23, for anything in good faith done or intended to be done under this Act or the rules made thereunder . 32. Power to make rules. (1) The State Government may, after previous publication, make rules not inconsistent with this Act for carrying out the purposes of this Act. (2) In particular and without prejudice to the general ity of the foregoing power, the State Government may make rules (a) prescribing the form of the register of societies and the mode in which entries relating to registration are to be made therein, and the mode in which such entries are to be amended or notes made therein; (b) regulating the filing of documents received by the Registrar; (c) prescribing the particulars to be contained in the form of accounts under sub -section (2) of section 12C; (d) prescribing the manner in which the accounts shall be audited under sub -section (4) of section 12C; (e) prescribing the authority before whom and the time within which an appeal shall be preferred under sub -section (2) of (

) prescribing the authority before whom and the time within which an appeal shall be preferred under sub -section (2) of (g) section 12E . and the manner in which such appeal shall be filed; (f) prescribing the duties, functions and powers of governing body of the society under section 16A; (g) prescribing conditions for the inspection of original documents and regulating the grant of copies of documents under section 19; (h) prescribing the procedure for hearin g and decision of doubts or disputes in respect of elections under sub -section (1) of section 24; (i) prescribing the manner in which fees payable under this Act shall be paid under section 28; 25 (j) prescribing the qualifications of members of society under sub-section (6 ), of section 30: (k) providing for any other matter for which there is no provision or insufficient provision exists in this Act and for which provision is, in the opinion of the State Government , necessary for giving effect to the purposes of this Act. (3) Every rule made under this Act shall be laid, as soon as may be, after it is made , before the House of the State Legislature, while it is in session, If the House agrees in making any modification in the rule or the House agrees 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. . [Vide Haryana Act 14 of 2007, s. 7] 22. Procedure .(1) No Court inferior to that of a Magistrate of the First Class shall try an offence punishable under this Act. (2) No Court shall take cognizance of an offence punishable under this Ac t except upon complaint made by the Registrar of Joint Stock Companies or any other person, authorized in writing by him, in this behalf. [Vide Assam 11 of 1952, s. 3] Arunachal Pradesh After section 20, the following sections shall be inserted, namely: - 21. Penalties .(1) If the President, Secretary or any other person authorised in this behalf by a resolution of the governing body of the society fails to comply with the provisions of section 4A, he shall, on conviction be punishable with fine which may extend to five hundred rupees and in case of a continuing breach, shall also be punishable with fine not exceeding fifty rupees for each day, during the period the breach continue after the first conviction for such offence. (2) If any person willfully mak es or causes to be made any false entry in, or any commission from the list required by section 4, or in or from any statement or copy of rules or of alterations in rules sent to the Registrar under section 4A, he shall, on conviction, be punishable with fine which may extend to two thousand rupees. 22. Procedure. (1) No court inferior to that of a Judicial Magistrate of the first class shall try any offence punishable under this Act. Explanation. Judicial Magistrate of the first class for the purposes of this Act means the Deputy Commissioner, Additional Deputy Commissioner, Assistant Commissioner and Extra Assistant Commissioner who has been empowered under the Assam Frontier (Adminis tration of Just) Regulation, 1945 ( 1 of 1945), to administer justice in the territory of Arunachal Pradesh. (2) No. court shall take congnizance of an offence punishable under this Act except upon complaint made by the Registrar or any other person, author ised in writing by him, in this behalf. [Vide Arunachal Pradesh Act 6 of 1978, s. 2 and the Schedule] Haryana Amendment of section 20 of Act 21 of 1860 .In section 20, for the words and sign, instruments or design, the words and sign instruments or de sign, promotion of the interest or welfare of the public and any other object as may be notified by the Government as beneficial to the public, shall be substituted. [Vide Haryana Act 23 of 1974, s. 2] Insertion of section 22 to 32 in Central Act 21 of 18 60.After section 21 of the principal Act, the following sections shall be added at the end, namely: "22. Power of Registrar to call for information .(1) The Registrar may. by written order, require any society to furnish in writing such information or do cument within such time, being 26 ordinarily not less than three weeks from the date of receipt of the order by the society, as he may specify in the order in connection with the affairs of the society or any documents filed by the society under this Act. (2) On receipt by the society of an order under sub -section (1), it shall be the duty of the President, Secretary or any other person authorized in this behalf to furnish such information or documents. 23. Investigations of affairs of society .(1) Where on the information received under section 22 or otherwise, the Registrar is of opinion that there is apprehension that the affairs of a society registered under this Act are being so conducted as to defeat the objects of the society or that the society or its governing body by whatever name called, or any office -bearer thereof in actual effective control of the society is guilty of mismanaging its affairs or of any breach of fiduciary or other like obligations, the Registrar may, either himself or by any perso n authorized by him in that behalf, inspect or investigate into the affairs of the society or inspect any institution managed by the society. (2) It shall be the duty of every office -bearer of the society when so required by the Registrar or other person a uthorised under sub -section (1) to produce any books of account and other records of or relating to the society which are in his custody and to give him all assistance in connection with such inspection or investigation. (3) The Registrar or other person authorized under sub -section (1) may call upon and examine on oath any office -bearer, member or employee of the society in relation to the affairs of the society and it shall be the duty of every office -bearer, member or employee, when called upon, to a ppear before him for such examination. (4) The Registrar or other person authorized under sub -section (1) may, if in his opinion it is necessary for the purpose of inspection or investigation, seize any or all the records including account books of the so ciety: Provided that any person from whose custody such records are seized shall be entitled to make copies thereof in the presence of the person seizing such records (5) On the conclusion of the inspection or investigation, as the case may be, the person, if any, appointed by the Registrar to inspect or investigate shall make a report to the Registrar on the result of his inspection or investigation. (6) The Registrar may, after such inspection or investigation, give such directions to the society oi to its governing body or any office -bearer thereof , as he may think fit. for the removal of any defects or irregularities within such time es may be specified and in the event of default in taking action according to such directions, the Registrar may proceed to take action under section 12E or section 30, as the case may be. 24. Dispute regarding election of office -bearers .(1) The prescribed authority may, on a refence made to it by the Registra r or by at least one -fourth of the members of a society registered in Haryana, meet and decide in a summary manner any doubt or dispute in respe ct of the election or continuance in office of an office -bearer of such society, and may pass such orders in respect thereof as it deems fit: Provided that th e election of an office -bearer shall be set aside where the prescribed authority is satisfied (a) that any corrupt has been committed by such office -bearer; or (b) that the nomination of any candidate has been improperly rejected; or (c) that the result o f the election insofar as it concerns to such office -bearer has been materially affected by the improper acceptance of any nomination or by the improper reception, refusal or rejection of any vote or the reception of any vote which is void or by any non- compliance with the provisions of any rules of the society. Explanation I. A person shall be deemed to have committed a corrupt practice who , directly or indirectly, by himself or by any other person. 27 (i) induces, or attempts to induce, by fraud, in tentional misrepresentation, coercion or threat of injury, any elector to give oi to refrain from giving a vote in favour of any candidate, or any person to stand or not to stand as, or to withdraw or not to withdraw from being a candidate at the election; (ii) with a view to inducing any elector to give or to refrain from giving a vote in favour of any candidate, or to inducing any person to stand or not to stand as, or to withdraw or not to withdraw from being a candidate at the election, offers or gives any money. or valuable consideration, or any place or employment, or holds out any promise of individual advantage or profit to any person; (iii) abets (within the meaning of the Indian Penal Code) the doing of any of the acts specified in clauses (i) and (ii); (iv) induces or attempts to induce ti candidate or elector to believe that he, or any person in whom he is interested, will become or will De rendered an object of divine displeasure or spiritual censure; (v) canvasses on grounds of caste, community, sect or religion; (vi) commits , Lich other practice as the State Government may prescribe to be a corrupt practice. Explanation II.A promise of individual advantage or profit to a person includes a promise for the benefit of the person himself, or of anyone in whom he is interested. Explanation III. The State Government may prescribe the procedure for hearing and decision of doubts or disputes in respect of such elections and make provision in respect of any other matter relating to such elections for which insufficient provision exists in this Act or in the rules of the society. (2) Where by an order made under sub -section (1) , an election is set aside or an office -bearer is held no longer entitled to continue in office or where the Registrar is sat isfied that any election of office bearers of a society has not been held *faun the time specified in the rules of that society, he may call a meeting of the gener al body of such society for electing such office bearer or office -bearers , and such meeting shal1 be presided ov er and be conducted by the Registrar or the society relating to meetings and elections shall apply to such meeting and election with necessary modifications. (3) Where a meeting is called by the Registrar under sub -section (2), no other meeting shall be called for the purpose of election by any other authority or by any person claiming to be an office - bearer of the society. Explanat ion.For the purposes of this section, the expression 'prescribed authority' mean, an officer or court authorized in this behalf by the State Government by notification published in the Official Gazette . 25. Terms of gift to be observed .Where a society accepts a gift or donation of money or property of any other kind from any person for a specific purpose, it shall not use the money or other property gifted or donated or any part thereof for any other purpo se except for the promotion of the activities of the society. 26. Penalties. Any society which (a) fails to furnish the list of managing body or other information required to be furnished under section 22 or wilfully makes or causes to be made a false entry in, or any omission from, the list or any statement or copy of rules or of alteration in rule s or other information sent to the Registrar under the said section: (b) wilfully fails, neglects or refuses to maintain, balance and audit accounts as referred to in section 12C, wilfully fails to produce any books of accounts or other records as require d by sub-section (2) of section 23; 28 (d) wilfully fails to appear before the Registrar or other person authorised by him or otherwise contravenes the provisions of sub -section (3) of section 23; shall be punishable with fine which may extend to five thousand rupees. 27. Compounding of offences .(1) The Registrar may accept from any person against whom a reasonable suspicion exists that he has committed any offence punishable under section 26 or against whom a prosecution under that s ection has b een instituted, a sum of money by way of composition fee for the offence which such person is suspect" or .1ccused to have committed. (2) On the payment of such composition fee the suspected person shall be discharged and no further proceedings shall be ta ken and the composition shall have the effect of his acquittal. 28. Manner of payment of fees. Fees payable under the provisions of this Act shall be paid in such manner as may be prescribed. 29. Mode of service of notice by Registrar. (1) Any notice, or der or requisition meant for a society or for the governing body thereof to be issued by the Registrar may be served on the Secretary of the society, and service on the Secretary shall be as effectual as if the same had been served on every member of the s ociety or, as the case may be, on every member of the governing body thereof, unless the Registrar otherwise directs. (2) The sending of such notice, order or requisition to the Secretary of the society by registered post at its registered office shall am ount to sufficient service ther eof on the society. 30. Appointment of Administrator .(I) Where on receipt of a complaint from three office -bearers of a society or three affected persons or on inspection of records, the Registrar is satisfie d, (i) that the society is working against the objectives and ideals as per sections 1 and 20 on the basis of which the society was granted certificate; (ii) that the society is not working democratically or the elections have not taken place within the speci fied tune or the election have taken place fraudulently or against t he clauses of memorandum of association; (iii) the office -bearers have been nominated against the clauses of memorandum of association ; (iv) that the number of members in a trustee m and

against the clauses of memorandum of association ; (iv) that the number of members in a trustee m andal has been purposely kept below seven, the Registrar may recommend to the State Govern ment to appoint an Administrator : Provided that no adverse order s hall be passed unless an opportunity of being heard has been given to the conceined society: Provid ed further that the action of the Registrar in this behalf shall be final and no appeal shall lie in any court against such action. (2) The State Government may, by order published in the Official Gazette, shall appoint an Administrator of such society who shall not be below the rank of Deputy Secretary for such period, not exceeding six months. as may be specified in the order to manage the affairs of the society : Provided that for reasons to be recorded in writing, the State Government may, by like order , extend the said period for a furthe r duration of six months. (3) On the appointment of the Administrat ion under sub -section (2), the governing body of the society shall cease to exercise any powers and perform and discharge any functions or duties conferred or imposed on it by this Act, or its memorandum of association or the rules and regulations of any other law and subject to any directions which the State Government may from time to time issue , all such functions or duties shall be performed or discharged by the Administrator. (4) The Administrator shall, before the expiry of the period of his appointment, take necessary action to convene the general body meeting of the society and hold election for the constitution of the governing body. 29 (5) If the Administrator is not, for reasons beyond his controllable to convene the general body meeting or in spite of such meeting being convened the general body fails to elect the governing body, the Administrator shall forthwith send a report to the State Go vernment who may pass such orders as are considered necessary, either extending the period of appointment of the Administrator for a further duration or if satisfied that public interest so requires, for the dissolution of the society. (6) The State Government may, if it thinks fit, appoint a committee to advise and assist the Administrator appointed under sub-section ( 1) in the exercise of the powers and performance and discharge of the duties and functions conferred or imposed on him under this Act. The members of the committee shall have such quali fications as may he prescribed and shall hold office during the pleasure of the State Government. (7) Where an order of dissolution is passed under sub -section (5), the assets of the society shall vest in and the liabilities shall devolve on the State Government. 31. indemnity. No suit, prosecution or other legal proceedings shalt lie in any court against the State Government, the Registrar or against any person appointed for inspection or investigation under section 23, for anything in good faith done or intended to be done under this Act or the rules made thereunder. 32. Power to make rules. (1) The State Government may, after previous publication, make rules not inconsistent with this Act for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules (a) prescribing the form of the register of societies and the mode in which entries relating to registratio n are to be made therein, and the mode in which such entries are to be amended or notes made therein; (b) regulating the filing of documents received by the Registrar; (c) prescribing the particulars to be contained in the form of accounts under sub -sectio n (2) of section I2C; (d) prescribing the manner in which the accounts shall be audited under sub -section (4) of section 12C; (e) prescribing the authority before whom and the time within which an appeal shall be preferred under sub -section (2) of section 12E and the manner in which such appeal shall be filed; (f) prescribing the duties, functions and powers of governing body of the society under section I6A; (g) prescribing conditions for the inspection to original documents and regulating the grant of copies of documents under section 19; (h) prescribing the procedure for hearing and decision of doubts or disputes in respect of elections under sub -section (1) of section 24; (i) prescribing the manner in which fees payable under this Act shall be paid u nder section 2S; (j) prescribing the qualifications of members of society under sub -section (6 ), of section 30: (k) providing for any other matter for which there is no provision or insufficient provision exists in this Act and for which provision is, in the opinion of the State Government necessary for giving effect to the purposes of this Act. (3) Every rule made under this Act shall be laid, as soon as may be, after it is made. before the House of the State Legislature, while it is in session, If the Ho use agrees in making any modification in the rule or the House agrees 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 annu lment shall be without prejudice to the validity of anything previously done under that rule. ]

THE ATOMIC ENERGY ACT, 1962 ACT No. 33 OF 1962 [15th September , 1962 .] An Act to provide for the development, control and use of atomic energy for the welfare of the people of India and for other peaceful purposes and for matters connected therewith. BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows: 1. Short title, extent and commencement .(1) This Act may b e called the Atomic Energy Act, 1962 . (2) It extends to the whole of India. (3) It shall come into force on such date1 as the Central Government may , by notification in the Official Gazette, appoint. 2. Definitions and interpretation .(1) In this Act, unless t he context otherwise requires, (a) atomic energy means energy released from atomic nuclei as a result of any process, including the fission and fusion processes; (b) fissile material means uranium 233, uranium 235, plutonium or any material containing these substances or any other material that may be declared as such by notification by the Central Government; 2[(bb) Government company means a company in which (i) not less than fifty -one per cent. of the paid -up share capital is held by the Central Government; or (ii) the whole of the paid -up share capital is held by one or more of the companies specified in sub -clause ( i) and which, by its art icles of association, empowers the Central Government to constitute and reconstitute its Board of Directors ;] (c) minerals include all substances obtained or obtainable from the soil (including alluvium or rocks) by u nderground or surface working; (d) notification means notification published in the Official Gazette; (e) Plant includes machinery, equ ipment or appliance, whether affixed to land or not; (f) prescribed equipment means any property which the Central Government may, by notification, prescribe, being a property which in its opinion is specially designed or adapted or which is used or intended to be used for the production or util isation of any prescribed substance, or for the production or utili sation o f atomic energy, radio active substances, or radiation, but does not include mining, milling, laboratory and other equipment not so specially designed or adapted and not incorporated in equipment used or intended to be used for any of the purposes aforesaid; (g) prescribed substance means any substance including any mineral which the Central Government may, by notification, prescribe, being a substance which in its opinion is or may be used for the production or use of atomic energy or research in to matters connected therewith and includes uranium, plutonium, thorium, beryllium, deuterium or any of their respective derivatives or compounds or any other materials containing any of the aforesaid substances; (h) radiation means gamma rays, X -rays, a nd rays consisting of alpha particles, beta particles, neutrons, protons and other nuclear and sub -atomic particles; but not sound or radio waves, or visible, infrared or ultraviolet light; 1. 21st September, 1962, vide notification No. G.S.R. 1254, dated 18th September, 1962, see Gazette of India, Extraordinary, Part II, sec. 3 ( i). 2. Subs. by Act 5 of 2016, s. 2, for clause ( bb) (w.e.f. 15-05-2023 ). 3 (i) radioactive substance or radioactive material means any su bstance or material which spontaneously emits radiation in excess of the levels prescribed by notification by the Central Government. (2) Any reference in this Act to the working of minerals shall be construed as including a reference to the mining, gettin g, carrying away, transporting, sorting, extracting or otherwise treating of minerals. (3) Any reference in this Act to the production or use of atomic energy shall be construed as including a reference to the carrying out of any process, preparatory or ancillary to such product ion or use. 3. General powers of the Central Government .Subject to the provisions of this Act, the Central Government shall have pow er (a) to produce, develop, use and dispose of atomic energy 1[either by itself or through any authority or corporation established by it or a Government company] and carry out research into any matters connected therewith; 2[(b) to manufacture or otherwise produce any prescribed or radioactive substance and any articles which in its opinion are, or are likely to be, required for or in connection with, the production, development or use of ato mic energy or such research as aforesaid and to dispose of such prescribed or radioactive substance or any articles manufacture d or otherwise produced ; (bb) (i) to buy or otherwise acquire, store and transport any prescribed or radioactive substance and an y articles which in its opinion are, or are likely to be, required for, or in connection with, the production, development or use o f atomic energy; and (ii) to dispose of such prescribed or radioactive substance or any articles boug ht or otherwise acquired by it, either by itself or through any authority or corporation established by it, or a Government company;] (c) to declare as restricted information any information not so far published or oth erwise made public relating to (i) the location, quality an d quantity of prescribed substances and transactions for their acquisition, whether by purchase or otherwise, or disposal, whether by sale or otherwise; (ii) the processing or prescribed substances and the extraction or production of fissile materials from them; (iii) the theory, design, construction and operation of plants for the treatment and production of any of the pr escribed substances and for the separation or isotopes; (iv) the theory , design, construction and operation of nuclear reactors; (v) rese arch and technological work on materials and process es involved in or derived from items ( i) to ( iv); (d) to declare as prohibited area any area or premises where work including research, design or development is carried on in respect of the production, treatment, use, application or disposal of atomic energy or of any prescribed substances; (e) to provide for control over radioactive substances or radiatio n generating plant in order to (i) prevent radiation hazards; (ii) secure public safety and safety or persons hand ling radioactive substances or radiation generating plant; and (iii) ensure safe disposal of radioactive wastes; 1. Ins. by Act 29 of 1987, s. 3 (w.e.f. 8 -9-1987). 2. Subs. by s. 3, ibid., for clause ( b) (w.e.f. 8 -9-1987). 4 (f) to provide for the production and supply of electricity from atomic energy and for taking measures conducive to such product ion and supply and for all matters incidental thereto 1[either by itself or through any authority or corporation established by it or a Government company] ; and (g) to do all such thing s (including the erection of buildings and execution of works and the working of minerals) as the Central Government considers necessary or expedient for the exercise of the foregoing powers. 4. Notification of discovery of uranium or thorium .(1) Every person who, whether before or after the commencement of this Act, has discovered or discovers that uranium or thorium occurs at any place in India shall, within three months after the date of commencement of this Act or after the discovery , whichev er is later , report the discovery in writing to the Central Government or to any person or authority authorised by the Central Government in this behalf. (2) Every person who has reason to believe that uranium or thorium occurs at any place in India shall, without delay, send intimation of such belief and the reasons therefor to the Central Government or to any such person or authority as aforesaid. 5. Control over mining or concentration of substances containing uranium .(1) If the Central Government is s atisfied that any person is mining or is about to mine any substance from which, in the opinion of the Central Government, uranium can be or may reasonably be expected to be, isolated or extracted, or is engaged or is about to be engaged in treating or con centrating by any physical, chemical or metallurgical process any substance from which, in the opinion of the Central Government, uranium can be or may reasonably be expected to be, isolated or extracted, the Central Government may b e notice in writi ng giv en to that person either (a) require him in conducting the mining operations or in treating or concentrating the substance aforesaid to comply with such terms and conditions and adopt such processes as the Central Government may in the notice , or from time to time thereafter, think fit to specify, or (b) totally prohibit him from conducting the mining operations or treating or concentrating the substance aforesaid. (2) Where any terms and conditions are imposed on any person conducting any mini ng operations or treating or concentrating any substance under clause (a) of sub -section ( 1), the Central Government may, having regard to the nature of the terms and conditions, decide as to whether or not to pay any compensation to that person and the de cision of the Ce ntral Government shall be final : Provided that where the Central Government decides not to pay any compensation, it shall record in writing a brief statement giving the reasons for such decision. (3) Where the Central Government decides to pay any compensation under sub -section ( 2), the amount thereof shall be determined in accordance with section 21 but in calculating the compensation payable, no account shall be taken of the value of any uranium contained in the substance referred to in sub-section ( 1). (4) Where any mining operation or any process o f treatment or concentration of any substance is prohibited under clause ( b) of sub -section ( 1), the Central Government shall pay compensation to the person conducting the mining operations or u sing the process of treatment or concentration and the amount of such compensation shall be determined in accordance with section 21 but in calculating the compensation payable, no account shall be taken of the value of any uranium contained in the substan ce. 6. Disposal of uranium .(1) No minerals, concentrates and other materials which contain uranium in its natural state in excess of such proportion as may be prescribed by notification by the Central Government shall be disposed of except with the previous permission in writing of the Central Government and in accordance with such terms and conditions as it may impose. (2) The Central Government may serve notice on any person who has produced any mineral, concentrate or other material referred to in sub -section ( 1) that the Central Government 1[proposes to 1. Subs. by Act 59 of 1986, s. 2, for certain words (w.e.f. 21 -9-1962), 5 compulsorily acquire it and upon the service of the notice], the mineral, concen trate or other material shall become the property o f the Central Government and shall be delivered to the Central Government or as it may direct : 1* * * * * 2[(3) Compensation in respect of acquisition under sub -section ( 2) shall be paid in accordance with section 21 and in determining such compensation regard shall be had to the cost of production of such mineral, concentrate or other material and such other factors as may be relevant but no account shall be taken of the v alue of uranium in its natural state contained therein.] 7. Power s to obtain information regarding materials, plant or processes .The Central Government may, by notice in writing served on any person, require him to make such periodical and other returns, or statements at such times and containing such particulars and accompanied by such plans, drawings, and other documents as may be speci fied in the notice relating to (a) any prescribed substance, specified in the notice, in his possession or under his control or present in or on any land or mine owned or occupied by him which in the opinion of the Central Government is or can be a source of any of the prescribed substances, including returns in respect of any such land or mine; (b) any plant in his poss ession or under his control designed for mining or processing of minerals so specified, or adapted for the production or use of atomic energy or research into matters connected therewith; (c) any contract entered into by him or any licence granted by or to him relating to prospecting or mining o f minerals so specified or the production or use o f atomic energy or research into matters connected therewith; (d) any other information in his possession relating to any work carried out by him or on his behalf or under his directions, in connection with prospecting or mining of materials so specified or the production or use of atomic energy or research into matters connected therewith. 8. Power of entry and inspection .(1) Any person authorised by the Central Government may, on producing, if so required, a duly authenticated document showing his authority, enter an y mine, premises or land (a) where he has reason to believe that work is being carried out for the purpose of or in connection with production and processing of any prescribed substances or substances from which a prescribed substance can be obtained or production, development or use o f atomic energy or research into matters connected therewith, or (b) where any such plant as is mentio ned in clause ( b) of section 7 is situate, and may inspect the mine, premises or land and any articles contained therein. (2) The person carrying out the inspection may make copies of or extracts from any drawing, plan or other document found in the mine, premises or land and for the purpose of making such copies or extracts, may remove any such drawing, plan or other document after giving a duly signed receipt for the same and retain possession thereof for a period not exceeding seven days. 9. Power to do work for discovering minerals .(1) The Central Government may, subject to the provisions of this section, do on, over or below the surface of any land such work as it considers necessary for the purpose of discovering whether there is present in or on the land, either in a natural state or in a deposit o f waste m aterial obtained from any under ground or surface working, any substance f rom which in its opinion any of the prescribed substances can be obtained, and the extent to which such substance is so present. (2) Before any powers are exe rcised under sub -section ( 1) in relation to any land, the Central Government shall serve on every owner, lessee and occupier of the land a notice in writing specifying the 1. The p roviso omitted by Act 59 of 1986, s. 2 (w.e.f. 21 -9-1962). 2. Ins. by s. 2, ibid. (w.e.f. 21 -9-1962). 6 nature of the work proposed to be done and the extent of the land affected, and the time, not being less than twenty -eight days, within which and the manner in which objections can be made

the land affected, and the time, not being less than twenty -eight days, within which and the manner in which objections can be made thereto, and no such powers shall be exercised otherwise than in pursuance of the notice or before the expiration of the time specified therein for mak ing objections. (3) The Central Government may, after giving the person making the objection an opportunity of appearing before and being heard by a person appointed by the Central Government for the purpose, and after considering any such objection and th e report of the person so appointed, make such orders as it may deem proper but not so as to increase the extent of the land affected. (4) Compensation shall be determined and paid in accordance with section 21 in respect of any diminution in the value of any land or property situate thereon resulting from the exercise of powers under this section. 10. Compulsory acquisition of rights to work minerals .(1) Where it appears to the Central Government that any minerals from which in its opinion any of the pres cribed substances can be obtained are present in or on any land, either in a natural state or in a deposit of waste material obtained from any underground or surface working, it may by order provide for compulsorily vesting in the Central Government the ex clusive right, so long as the order remains in force to work those minerals and any other minerals which it appears to the Central Government to be necessary to work with those minerals, and may also provide, by that order or a subsequent order, for compul sorily vesting in the Central Government any other ancillary rights which appear to the Central Government to be necessary for the purpose of working the minerals aforesaid including (without prejudice to the generality of the foregoing provisions) (a) rights to withdraw support; (b) rights necessary for the purpose of access to or conveyance of the minerals aforesaid or the ventilation or drainage of the working; (c) rights to use and occupy the surface of any land for the purpose of erecting any necessary building s and installing any necessary plant in connection with the working of the minerals aforesaid; (d) rights to use and occupy for the purpose of working the minerals aforesaid any land forming part of or used in connection wit h an existing mine or quarry, and to use or acquire any plant used in connection with any such mine or quarry; and (e) rights to obtain a supply or water for any of the purposes connected with the working of the minerals aforesaid, or to dispose of water o r other liquid matter obtained in consequence of working such minerals. (2) Notice of any order proposed to be made under this section shall be se rved by the Central Government (a) on all persons who, but for the order, would be entitled to work the miner als affected; and (b) on every owner, lessee and occupier (except tenants for a month or for less than a month) of any land in respect of which rights are proposed to be acquired under the order. (3) Compensation in respect of any right acquired under this section shall be paid in accordance with section 21, but in calculating the compensation payable, no account shall be taken of the value of any minerals present in or on land affected by the order, being minerals specified in the order as those from which in the opinion of the Central Government uranium or any concentrate or derivative of uranium can be obtained. 11. Compulsory acquisition of prescribed substances, minerals and plants .(1) Save as otherwise provided in any other provision of this Act, the Central Government may compulsorily acquire in accordance with the provisions of this section (a) any prescribed substance; 7 (b) any minerals from which in the opinion of the Central Government any o f the prescribed substances can be obtained; (c) any prescribed equipment; (d) any plant which is designed or adapted for the mining or processing of any minerals referred to in clause ( b) or substances obtained therefrom or for the production or use of any prescribed substance or a radioactive substanc e or for the production, use or disposal of such articles as are or are likely to be required for or in connection with the production, use or disposal o f atomic energy or for research into matters connected therewith. (2) Where the Central Government acqu ires any plant referred to in clause ( d) of sub -section ( 1), it shall also have the right to acquire any buildings, railway sidings, tramway lines, or aerial ropeways serving such plant. (3) Where the Central Government proposes to acquire any property under sub -section ( 1), it shall serve upon the person appearing to be the owner thereof, a notice in writing specifying the property to be acquired and requiring that person to make to the Central Government within the time specified in the notice a writte n declaration containing such particulars as may be so specified regarding the ownership of such property and any agreement or charge by virtue of which any other person has an interest in such property. (4) Upon the service of a notice under sub -section ( 3), no property to which the notice relates shall be disposed of without the previous permission in writing of the Central Government. (5) If it appears to the Central Government in consequence of any written declaration made to it in pursu ance of sub -section ( 3) that any person other than the person on whom the notice under sub-section ( 3) was served is the owner of, or has any interest in, the property to which the notice relates, the Central Government shall serve a copy of the notice on that other person. (6) A notice served under sub -section ( 3) shall contain a statement to the effect that an objection may be made thereto within such time and in such manner as may be specified , and if any such objection is duly made and not withdrawn, the Central Government shall afford an opportunity to the person making the objection of appearing before and being heard by a person appointed by the Central Government for the purpose. (7) After considering any such objection, and the rep ort of the person appointed by it under sub-section ( 6), the Central Government may serve on the person s upon whom the notice under sub-section ( 3) or a copy thereof was served a further notice in writing either withdrawing th e notice of acquisition or confirming the said notice as respects the property to which it relates or such part of the property as may be specified. (8) Any property with respect to which a notice of acquisition is s erved under this section shall (a) if no objection is duly made to the notice, vest in the Central Government at the expiration of the time for making such objection; (b) if such an objection is duly made and the notice is confirmed as respect the whole or any part of that property by a notice served under sub -section ( 7), vest accordingly in the Central Government on the servic e of the last mentioned notice; and shall in either case vest free from all encumbrances. (9) Compensation in respect of acquisition under this section shall be paid in accordance with section 21. 8 1[11A. Removal of doubts . For the removal of doubts, it is hereby declared that the compulsory acquisition of any mineral, concentrate or other material under sub -section ( 2) of section 6, or of any substance, minerals, equipment or plant under sub -section ( 1) of section 11, shall not be deemed to be a sale for any purpose whatsoever.] 12. Compensation in case of compulsory acquisition of a mine .Where the Central Government acquires, in accordance with any law, any mine or part of a mine from which in the opinion of the Central Government any of the prescribed substances can be obtained, compensation in respect of such acquisition shall be pai d in accordance with section 21 : Provided that in determining the amou nt of such compensation, no account shall be taken of the value of uranium which may be obtained from such mine or part of a mine. 13. Novation of certain contracts .(1) The Central Government may serve on the parties to a contract relating to prospecting or mining of any substance from which any of the prescribed substances can be obtained or to production or use of atomic energy or to research into matters connected therewith, not being a contract for the rendering of personal services, a notice in writin g stating that on such date as may be specified in the notice the rights and liabilities of any of the parties to the contract specified in the notice (hereinafter referred to as the specified party) will be transferred to the Central Government, and there upon subject to any withdrawal of the notice under the following provisions of this section, the contract shall , as regards any rights exercisable, or liabilities incurred, on or a fter the said date, have effect s as if the Central Government were a party to the contract instead of the specified party and as if for any reference in the contract to the specified party there were substituted a reference to the Central Government. (2) A notice served under sub -section ( 1) shall contain a statement to the effect that an objection may be made thereto within such time and in such manner as may be specified, and if any such objection is duly made and not withdrawn, the Central Government shall afford an opportunity to the person making the objection of appeari ng before and being heard by person appointed by the Central Government for the purpose. (3) After considering any such objection and the report of the person appointed by it under sub-section ( 2), the Central Government may make such o rder as it may deem proper. (4) Where the rights and liabilities of a party to a contract are transferred to the Central Government under this section, there shall be paid to that party such compensation in respect of any loss suffered by that party as may be agreed between him and the Central Government, and in default of such agreement, as may be determined by arbitration. 14. Control over production and use of atomic energy .(1) The Central Government may, subject to such rules as may be made in this behalf, by order prohibit except under a licence granted by it (i) the working of any mine or minerals specified in the order, being a mine or minerals from which in the opinion of the Central Government any of the prescr ibed substances can be obtained; (ii) the acquisition, production, possession, u se, disposal, export or import (a) of any of the prescribed substances; or (b) of any minerals or other substances specified in the rules, from which in the opinion of the Central Government any of the prescri bed substances can be obtained ; or (c) of any plant designed or ad opted or manufactured for the production, development and use of atomic energy or for research into matters connected therewith; or (d) of any prescribed equipment. 2[(1A) No licence under sub -clause ( c) of clause ( ii) of sub -section ( 1) shall be granted to a person other than a Department of the Central Government or any authority or an institution or a corporation established by the Central Government, or a Government company. 1. Ins. by Act 59 of 1986, s. 3 (w.e.f. 21 -9-1962). 2. Ins. by Act 5 of 2016, s. 3 ( w.e.f. 15 -05-2023 ). 9 (1B) Any licence granted to a Government company under sub -section ( 1) shall stand cancelled in case the licensee ceases to be a Government company and, notwithstanding anything contained in any other law for the time being in f orce, all assets thereof shall v est in the Central Government free from any liability and the Central Government shall take such measures for safe operation of the plant and disposal of nuclear material so vested in it, as may be necessary in accordance with the provisions of section 3. ] (2) Nothing in this section shall affect the authority of the Central Government to refuse a licence for the purpose of this section or to include in a licence such conditions as the Central Government thinks fit or to revoke a licence and the Central Gove rnment may take any action as aforesaid. (3) Without prejudice to the generality of the foregoing provisions, the rules referred to in this section may provide for (a) the extent to which information in the possession of, or which has been made available to, the person granted a licence for purposes of this section, should be regarded as restricted information; (b) the extent to which the area or premises under the control of the person to whom a licence has been grant ed for purposes of this section, should be regarded as a prohibited area; (c) the conditions and criteria for location of any installation or operation of any plant in respect of which a licence has been granted or is intended to be granted for the purpose s of this section including those necessary for protection against radiation and safe disposal of harmful by -product s or wastes; (d) the extent of the licensee s liability in respect of any hurt to any person or any damage to property caused by ionising ra diations or any radioactive contamination either at the plant under licence or in the surrounding area; (e) provision by licensee either by insurance or by such other means as the Central Government may approve, of sufficient funds to be available at all t imes to ensure settlement of any claims in connection with the use of the site or the plant under licence which have been or may be duly established against the licensee in respect of any hurt to any person or any damage to any property caused by ionising radiations emitted at the plant under licence or radioactive contamination either at the plant under licence or in surrounding areas; (f) obligatory qualifications, security clearances, hours of employment, minimum leave and periodical medical examination of the persons employed and any other requirement or restriction or prohibition on the employer, employed persons and other persons; and (g) such other incidental and supplementary provisions including provisions for inspection and also for the sealing or premises and seizure, retention and disposal of any article in respect of which there are reasonable grounds for suspecting that a contravention of the rules has been committed, as the Central Government considers necessary. (4) The Central Government may also prescribe the fees payable for issue of licences under sub-section ( 1). 15. Requisitioning of any substance for extracting uranium or plutonium .(1) The Central Government shall have the right to require that any substance which, in the opinion of the Central Government, contains uranium, plutonium or any of their isotopes, shall be delivered to it and the Central Government may extract from that substance the uranium, plutonium or any of their isotopes contained therein and return t he substance to the person concerned on payment of compensation which shall be determined in accordance with section 21 : Provided that such compensation shall not, in any case, exceed the cost incurred by the person in the production , mining or irradiation of the substance and in determining the same no account shall be taken on the value of the uranium, plutonium or any of their isotopes extracted from the substance. (2) Nothing in this section shall prevent the Central Government from permitting, subject to such conditions as it may deem fit to impose, the use of small quantities of natural uranium for the purpose of examination, test or analysis. 16. Control over radioactive substances .The Central Government may prohibit the manufacture, possession, use, transfer by sale or otherwise, export and import and

active substances .The Central Government may prohibit the manufacture, possession, use, transfer by sale or otherwise, export and import and in any emergency, transport and disposal, of any radioactive substances without its written consent. 10 17. Special provisions as to safety .(1) The Central Government may, as regards any class or descript ion of premises or places, being premises, or places, in which radioactive substances ar e manufactured, produced, mined, treated, stored or used or any radiation generating plant, equipment or appliance is used, make such provision by rules as appear to th e Central Government to be necessary (a) to prevent injury being caused to the health of persons employed at such premises or places or other persons either by radiations, or by the ingestion of any radioactive substance; (b) to secure that any radioactive waste products resulting from such manufacture, production, mining, treatment, storage, or use as aforesaid are disposed of safely; (c) to prescribe qualifications of the persons for employment at such premises or places and the regulation of t heir hours of employment , minimum leave and periodical medical examination; and the rules may, in particular and without prejudice to the generality of this sub -section, provide for imposing requirements as to the erection or structural alterations of buildings or the carrying out of works. (2) The Central Government may, as respects the transport of any radioactive substance or any prescribed substance specified by an order issued under this Act as being dangerous to health, make such rules as appear to be necessary to prevent injury being caused by such transport to the health of persons engaged therein and other p ersons. (3) Rules made under this section may provide for imposing requirements, prohibitions and restrictions on employers, employed persons and other persons. (4) Any person authorised by the Central Government under this section, may, on producing, if s o required, a duly authenticated document showing his authority, enter at all reasonable hours any premises, or any vehicle, vessel or aircraft for the purpose of ascertaining whether there has been committed, or is being committed, in or in connection wit h the premises, vehicle, vessel or aircraft, any contravention of the rules made under this section. (5) In the event of any contravention of the rules made under this section, the Central Government shall have the right to take such measures as it may dee m necessary to prevent further injury to persons or damage to property arising from radiation or contamin ation by radioactive substances including, without prejudice to the generality of the foregoing provisions, and to the right to take further action for the enforcement of penalties under section 24, the sealing or premises, vehicle, vessel, or aircraft, and the seizure of radioactive substances and contaminated equipment. 18. Restriction on disclosure of information .(1) The Central Government may by order restrict the disclosure of information, whether contained in a document, drawing , photograph, plan, model, or in any other form whatsoever, which relates to, represents or illustrat es (a) an existing or proposed plant used or proposed to be used for the purpose of producing, developing or using atomic energy, or (b) the purpose or method of operation of any such existing or proposed plant, or (c) any process operated or proposed to be operated in any such existing or proposed plant. (2) No person sha ll (a) disclose, or obtain or attempt to obtain any information restricted under sub -section ( 1), or (b) disclose, without the authority of the Central Government, any information obtained in the discharge of any functions under this Act or in the perform ance of his official duties. (3) Nothi ng in this section shall apply (i) to the disclosure of information with respect to any plant of a type in use for purposes other than the production, development or use of atomic energy, unless the information disclo se that plant of that type is used or proposed to be used for the production, development or use of atomic energy or research into any matters connected therewith; or 11 (ii) where any information has been made available to the general public otherwise than i n contravention of this section, to any subsequent disclosure of that information. 19. Prevention of entry into prohibited areas .The Central Go vernment may by order prohibit (a) entry of any person, without obtaining permission, into a prohibited area, and (b) taking by any persons, without permission, of any photograph, sketch, pictures, drawing, map or other document from a prohibited area and any permission, if given to do these things, may be subject to stipulations which the Central Government may c onsider necessary. 20. Special Provisions as to inventions .(1) As from the commencement of this Act, no patents shall be granted for inventions which in the opinion of the Central Government are useful for or relate to the production, control, use or disposal of atomic energy or the prospecting, mining, extraction, production, physical and chemical treatment, fabrication, enrichment, canning or use of any prescribed substance or radioactive substance or the ensuring of safety in atomic energy operation s. (2) The prohibition under sub -section ( 1) shall also apply to any invention of the nature specified in that sub -section in respect of which an application for the grant of a patent has been made to the Controller of Patents and Designs appointed under the Indian Patents and Designs Act, 1911 (2 of 1911) , before the commencement of this Act and is pending with him at such commencement. (3) The Central Government shall have the power to inspect at any time any pending patent application and specification before its acceptance and if it considers that the invention relates to atomic energy , to issue directions to the Controller of Patents and Designs to refuse the application on that ground. (4) Any person, who has made an invention which he has reason to b elieve relates to atomic energy, shall communicate to the Central Government the nature and description of the invention. (5) Any person desiring to apply for a patent abroad for an invention relating to or which he has reason to believe relates to atomic energy shall obtain prior permission from the Central Government before making the application abroad or communicating the invention to any person abroad, unless three months have elapsed since his request for permission was made to the Central Government and no reply was received by him. (6) The Controller of Patents and Designs shall have the power to refer any application to the Central Government for direction as to whether the invention is one relating to atomic energy and the direction given by the Ce ntral Government shall be final. (7) Any invention in the field of atomic energy conceived whether in establishments controlled by the Central Government or under any contract, sub -contract, arrangement or other relationship with the Central Government sha ll be deemed to have been made or conceived by the Central Government, irrespective of whether such contract, sub -contract, arrangement or other relationship involves financial participation of or assistance from the Central Government. (8) Notwithstanding anything contained in the Indian Patents and Designs Act, 1911 (2 of 1911) , the decision of the Central Government on points connected with or arising out of this section shall be final. 21. Principles relating to payment of compensation .(1) Save as othe rwise provided in this Act, where by reason of exercise of any powers under this Act, any compensation is payable, the amount of such compensation shall be determined in the manner and in accordance with the principles hereinafter set out, that is to say (a) where the amount of compensation is fixed by agreement, it shall be paid in accordance with such agreement; (b) where no such agreement is reached, the Central Government shall appoint as arbitrator a person having expert knowledge as to the nature of the right affected who shall determine the amount of compensation payable. (2) In making his award, the arbitrator appointed under sub -section ( 1) shall have regard (a) in the case of any compen sation payable under section 9 12 (i) to the nature of the work done; (ii) the manner, extent and duration of the exercise of any powers under that section; (iii) the diminution in the rent of the land and of the property situated thereon, which might reasonably be expected over any period or diminution in the market value of the land and property on the date when the exercise of powers comes to an end; and (iv) the provisions of sub -section (1) of section 23 of the Land Acquisition Act, 1894 (1 of 1894) , in so far as such provisions can be made applicable to the exercise of powers under section 9; and (b) in the case of any compensation payable under section 11 or under section 12, to the price which the owner might reasonably have been expected to obtain on a sale of the property effected by him immediately before the date of the acquisition. (3) An appeal shall lie to the High Court against an award of the arbitrator except in cases where the amount claimed thereof does not exceed an amount prescribed in this behalf by the Central Government. (4) The Central Government may make rules prescribing the procedure to be followed in arbitrations under this Act and the principles to be followed in the apportionment of the cost of proceedings before the arbitrator and on appeal. (5) Save a s provided in this Act, nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this Act. 22. Special provision as to electricity .(1) Notwithstanding anything contained in the Electricity (Supply) Act, 1948 (54 of 1948) , the Central G overnment shall have authority (a) to develop a sound and adequate national policy in regard to atomic power, to co -ordinate such policy with the Central Electricity Authority and the State Electricity Boards constituted un der sections 3 and 5 respectively of that Act and other similar statutory corporations concerned with the control and utilisation of other power resources, to implement schemes for the generation of electricity in pursuance of such policy and to operate 1[,either by itself or through any authority or corporation established by it or a Government company ,] atomic power stations in the manner determined by it in consultation with the Boards or Corporations concerned, with whom it shall enter into agreement re garding the su pply or electricity so produced; (b) to fix rates for and regulate the supply of electricity from atomic power stations 2[either by itself or through any authority or corporation established by it or a Government company, in consultation with] of the Central Electricity Authority; (c) to enter into arrangements with the Electricity Board of the State in which an at omic power station is situated 1[either by itself or through any authority or corporation established by it or a Government com pany] for the transmission of electricity to any other State: Provided that in case there is difference of opinion between the Central Government 1[or such authority or corporation or Government company, as the case may be,] and any State Electricity Board in regard to the construction of necessary transmission lines, the matter shall be referred to the Central Electricity Authority whose decision shall be binding on the parties concerned. (2) No provision of the Indian Electricity Act, 1910 (9 of 1910) , or any rule made thereunder or of any instrument having effect by virtue of such law or rule shall have any effect so far as it is inconsistent with any of the provisions of this Act. (3) Save as otherwise provided in this Act, the provisions of this Act sha ll be in addition to, and not in derogation of, the Indian Electricity Act, 1910 (9 of 1910) , and the Electricity (Supply) Act, 1948 (54 of 1948) . 23. Administration of Factories Act, 1948 .Notwithstanding anything contained in the Factories Act, 1948 (63 of 1948) , the authority to administer the said Act and to do all things for the enforcement of its provisions, including the appointment of inspecting staff and the making of rules thereunder, shall vest 1. Ins. by Act 29 of 1987, s. 4 (w.e.f. 8 -9-1987). 2. Subs. by s. 4, ibid., for with the concurrence of (w.e.f. 8 -9-1987). 13 in the Cen tral Government in relation to any factory owned by the Central Government 1[or any authority or corporation established by it or a Government company ] and engaged in carrying out the purposes of this Act. 24. Offences and penalties .(1) Whoever (a) contravenes any order made under section 14 or any condition subject to which a licence is granted under that section; or (b) contravenes any rule made under section 17 or any requirement, prohibition or restriction imposed under any such rule; or (c) obstructs any person authorised by the Central Government under sub -section ( 4) of section 17 in the exercise of powers under that sub -section; or (d) contravenes sub -section ( 2) of section 18; shall be punishable with imprisonment for a term which may extend to five years, or with fine, or with both. (2) Whoever (a) fails to comply with any notice served on him under Section 5 or with any terms and conditions that may be imposed on him under that section; or (b) fails to comply with any notice served on him under Section 7 or knowingly makes any untrue statement in any return or statement made in pursuance of any such notice; or (c) obstructs any person or authority in the exercise of powers under Section 8 or 9; or (d) contravenes any ot her provision of this Act or any order made there under; shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both . 25. Offences by companies .(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of , and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub -section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithsta nding anything contained in sub -section ( 1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of , any dir ector, manager, secretary or other officer of the company, such director, manager, secretary, or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation .For the purposes of this section, (a) company means any body corporate and includes a firm and other association of individuals; and (b) director in relation to a firm, means a partner in the firm. 26. Cognizance of offences .(1) All offences under this Act shall be cognizable under the Code of Criminal Procedure,

Cognizance of offences .(1) All offences under this Act shall be cognizable under the Code of Criminal Procedure, 1898 (5 of 1898) , but no action shall be taken in respect of any person for any offence under this Act except on the bas is of a written complaint made 1. Ins. by Act 29 of 1987 , s. 5. (w.e.f. 8 -9-1987). 14 (a) in respect of contravention of section 8, 14 or 17 or any rule or order made thereunder, by the person authorised to exercise powers of entry and inspection ; (b) in respect of any other contravention, by a person duly authorised to make such complaints b y the Central Government. (2) Proceedings in respect of contravention of section 18 shall not be instituted except w ith the consent of the Attorney General of India. 27. Delegation of powers .The Central Government may, by order, direct that any power conf erred or any duty imposed on it by this Act shall, in such circumstances and subject to such conditions as may be specified in the direction, be e xercised or discharged also by (a) such officer or authority subordinate to the Central Government, or (b) such State Government or such officer or authority subordinate to a State Government as may be specified in the direction. 28. Effect of other laws .The provisions of this Act shall have effect notwithstanding any thing inconsistent therewith contained in any enactment other than this Act or any other instrument having effect by virtue of any enactment other than this Act. 29. Protection of action taken in good faith .No suit, prosecution or other legal proceeding shall lie against the Government or any person or authority in respect of anything done by it or him in good faith in pursuance of this A ct or of any rule of order made thereunder. 30. Power to make rules .(1) The Central Government may, by notification , make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for (a) declaring any information not so far published or otherwise made public as restricted information and prescribing the measures to be taken to guard against unauthorised dissemination or use thereof; (b) declaring any area or premises as prohibited area a nd prescribing the measures to be taken to provide against unauthorised entry into or departure from such prohibited area; (c) reporting of information relating to the discovery of uranium, thorium and other prescribed substances and for payment of rewards for such discoveries; (d) control over mining or concentration of substances containing uranium; (e) regulating by licensing and encouraging by award of concessions including rewards, floor prices and guarantees, mining of and prospecting for other prescr ibed substances; (f) compulsory acquisition of prescribed substances, minerals and plants; (g) regulating the production, import, export, transfer, refining, possession , ownership, sale, use or disposal of the prescribed substances and any other articles t hat in the opinion of the Central Government may be used for, or may result as a consequence of, the production, use or application of atomic energy; (h) regulating the use of prescribed equipment; (i) regulating the manufacture, custody, transport, transf er, sale, export, import, use or disposal of any radioactive substance; (j) regulating the transport of such prescribed substances as are declared dangerous to health under sub -section ( 2) of section 17; (k) developing, controlling, supervising and licensi ng the production, application and use of atomic energy; (l) fees for issue of licences under this Act; (m) the manner of serving notices under this Act; 15 (n) generally promoting co -operation among person, institutions and countries in the production, use, application of atomi c energy and in research and in vestigation s in that field. (3) Rules made under this Act may provide that a contravention of the rules shall, save as otherwise expressly provided in this Act, be punishable with fine which may extend to five hundred rupees. (4) Every rule 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 succe ssive sessions , and if 1[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 shal l 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. 31. Act binding on Govern ment .The provisions of this Act shall be binding on Government. 32. [Repeal of Act 29 of 1948]. Rep. by Repealing and Amending Act , 1974 (56 of 1974) , s. 2 and the First Schedule (w.e.f. 20-12-1974). 1. Subs. by Act 4 of 1986, s. 2 and the Schedule, for before the expiry of the session in which it is so laid (w.e.f. 15 -5-1986). AMENDMENT THE ATOMIC ENERGY (AMENDMENT) ACT, 2015 NO. 5 OF 2016 [31st December , 2015.] An Act further to amend the Atomic Energy Act, 1962. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows: 1.(1) This Act may be called the Atomic Energy (Amendment) Act, 2015. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 2. In section 2 of the Atomic Energy Act, 1962 (hereinafter referred to as the principal Act), in sub-section ( 1), for clause ( bb), the following clause shall be substituted, namely: (bb) Government company means a company in which (i) not less than fifty-one per cent. of the paid-up share capital is held by the Central Government; orShort titleand com-mencement. Amendment of section 2.33 of 1962. EXTRAORDINAR PART II Section 1 PUBLISHED BY AUTHORITY NEW DELHI, FRIDAY, JANUARY 1, 2016/PAUSHA 11, 1937 (SAKA) Separate paging is given to this Part in order that it may be filed as a separate compilation. REGISTERED NO. DL(N)04/0007/200316 MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 1st January, 2016/ Pausha 11, 1937 ( Saka ) The following Act of Parliament received the assent of the President on the 31st December, 2015, and is hereby published for general information: (ii) the whole of the paid-up share capital is held by one or more of the companies specified in sub-clause ( i) and which, by its articles of association, empowers the Central Government to constitute and reconstitute its Board ofDirectors;. 3. In the principal Act, in section 14, after sub-section ( 1), the following sub-sections shall be inserted, namely: (1A) No licence under sub-clause ( c) of clause ( ii) of sub-section ( 1) shall be granted to a person other than a Department of the Central Government or anyauthority or an institution or a corporation established by the Central Government,or a Government company. (1B) Any licence granted to a Government company under sub-section ( 1) shall stand cancelled in case the licensee ceases to be a Government company and,notwithstanding anything contained in any other law for the time being in force, allassets thereof shall vest in the Central Government free from any liability and theCentral Government shall take such measures for safe operation of the plant anddisposal of nuclear material so vested in it, as may be necessary in accordance withthe provisions of section 3..Amendmentof section 14. DR. G. NARAYANA RAJU, Secretary to the Govt. of India. GMGIPMRND3983GI(S3)02.01.2016.2 THE GAZETTE OF INDIA EXTRAORDINARY [P ART IIS EC. 1] PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI2016.

THE PATENTS ACT, 1970 ACT NO. 39 OF 1970 [19th September , 1970.] An Act to amend and consolidate the law relating to patents. BE it enacted by Parliament in the Twenty -first Year of the Republic of India as follows: CHAPTER I PRELIMINARY 1. Short title, extent and commencement. (1) This Act may be called the Patents Act, 1970. (2) It extends to the whole of India. (3) It shal l come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. 2. Definition s and interpretation. (1) In this Act, unless the context otherwise requires, 2* * * *; (ab) assignee includes an assignee of the assignee and the legal representative of a deceased assignee and references to the assignee of any person include references to the assignee of the legal representative or assignee of that person; 3[(aba) Budapest Treaty mean s the Budapest Treaty on the International Recognition of the Deposit of Micro -organisms for the purposes of Patent Procedure done at Budapest on 28th day of April, 1977, as amended and modified from time to time; ] (ac) capable of industrial application , in relation to an invention, means that the invention is capable of being made or used in an industry; ] (b) Controller means the Controller General of Patents, Designs and Trade Marks referred to in section 73 ; (c) convention application means an app lication for a patent made by virtue of section 135; 4[(d) convention country" means a country or a country which is member of a group of countries or a union of countries or an Inter -governmental organi sation 5[referred to as a convention country in section 133 ;] (e) district court has the meaning assigned to that expression by the Code of Civi l Procedure, 1908 (5 of 1908) ; (f) exclusive licence means a licence from a patentee which confers on the licensee, or on the licensee and persons autho rised by him, to the exclusion of all other persons (including the patentee), any right in respect of the patented invention, and exclusive licensee shall be construed accordingly; 6* * * * * 1. 1-4-1978 , vide notification No. S.O. 799 , dated 10 -3-1978, in respect of the provisions of sub -section (2) of s. 12 and sub-section (2) of s. 13, s. 28, s. 68, and ss. 125 to 132 see Gazette of India, Part II, sec. 3 ( ii). 20-4-1972 vide notification No. S.O. 300 dated 20 -4-1972, in respect of the provisions [except sub -section (2) of s. 12 and sub-section (2) of s. 13, s. 28, s. 68 and ss. 125 to 132] see Gazette of India, Part II, sec. 3 ( ii). 2. Clause ( a) omitted by Act 33 of 2021, s. 13 (w.e.f.4 -4-2021). 3. Ins. by Act 15 of 2005, s. 2 (w.e.f. 1 -1-2005). 4. Subs. by Act 38 of 2002, s. 3, for clause ( d) (w.e.f. 20 -5-2003). 5. Subs. by Act 15 of 2005, s. 2, for notified as such under sub -section ( 1) of section 133 (w.e.f. 1 -1-2005). 6. Clause ( g) omitted by s. 2, ibid. (w.e.f. 1 -1-2005). 8 (h) Government undertaking means any indu strial undertaking carried on (i) by a department of the Government, or (ii) by a corporation established by a Central, Provincial or State Act, which is owned or controlled by the Government, or (iii) by a Government company as defined in section 617 of the Com panies Act, 1956 (1 of 1956) , 1[or] 1[(iv) by an institution wholly or substantially financed by the Government; ] 2* * * * * 3[(i) High Court", in relation to a State or Union territory, means the High Court having territorial jurisdiction in that State or Union territory, as the case may be ;] 4[(ia) international application means an application for patent made in accordance with the Patent Cooperation Treaty;] 5[(j) invention means a new product or process involving an inventive step and capab le of industrial application; 6[(ja) inventive step means a feature of an invention that involves technical advance as compared to the existing knowledge or having economic significance or both and that makes the invention not obvious to a person skilled in the art;] ] (k) legal representative means a per son who in law represents t he estate of a deceased person; 7[(l) new invention means any invention or technology which has not been anticipated by publication in any document or used in the country or elsewhere in the world before the date of filing of patent application with complete specification, i.e., the subject matter has not fallen in public domain or that it does not form part of the state of the art; (la) Opposition Board means an Opposition Board constituted under sub -section ( 3) of section 25; (m) patent means a patent for any invention granted under this Act;] (n) patent agent means a person for the time being registered under this Act as a patent agent; (o) patented article and patented process mean respectively an article or process in respect of which a patent is in force; 4[(oa) Patent Co operation Treaty means the Patent Co operation Treaty done at Washington on the 19th day of June, 1970 as amended and modified from time to time;] (p) patentee means the person for the time being entered on the register as the grantee or proprietor of the patent; (q) patent of addition means a patent granted i n accordance with section 54; (r) patent office means the patent office referred to in sect ion 74; (s) person" includes the Government; 1. Ins. by Act 15 of 2005, s. 2 (w.e.f. 1 -1-2005). 2. The words and includes the Council of Scientific and Industrial Research and any other institution which is financed wholly or for the major part by the said Council omitted by s. 2, ibid. (w.e.f. 1 -1-2005) 3. Subs. by s. 2, ibid., for clause ( i) (w.e.f. 1 -1-2005). 4. Ins. by Act 38 of 2002, s. 3 (w.e.f. 20 -5-2003). 5.Subs. by s. 3, ibid., for clause ( j) (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 2, for clause ( ja) (w.e.f. 1 -1-2005). 7. Subs. by s. 2, ibid., for clause s (l) and ( m) (w.e.f. 1 -1-2005). 9 (t) person interested includes a person engaged in, or in promoting, research in the same field as that to which the invention relates; 1[(ta) pharmaceutical substance" means any new entity involving one or more inventive steps;] 2[(u) prescribed means, (A) in relation to proceedings before a High Court, prescribed by rules made by the High Court; 3* * * * * (C) in other cases, prescribed by rules made under this Act ;] (v) prescribed manner includes the payment of the prescribed fee; (w) priority date has the meaning assigned to it by section 11; (x) register means the register of patents referred to in section 67; (y) true and first inventor does not include either the first importer of an invention into India, or a person to whom an invention is first communicated from outside India. (2) In this Act, unless the context ot herwise requires, any reference (a) to the Controller shall be constru ed as including a reference to any officer discharging the functions of the Controller in pursuance of section 73; (b) to the patent office shall be construed as including a reference to any branch office of the patent office. CHAPTER II INVENTIONS NOT PAT ENTABLE 3. What are not inventions. The following are not inventions w ithin the meaning of this Act, (a) an invention which is frivolous or which claims anything obviously contrary to well established natural laws; 4[(b) an invention the primary or intended use or commercial exploitation of which would be contrary to public order or morality or which causes serious prejudice to human, animal or plant life or health or to the environment;] (c) the mere discovery of a scie ntific principle or the formulation of an abstract theory 5[or discovery of any living thing or non -living substance occurring in nature] ; 6[(d) the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant. Explanation .For the purposes of this clause, salts, esters, ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of isomers, complexes, combinations and other derivatives of known substance shall be considered to be the same substa nce, unless they differ significantly in properties with regard to efficacy; ] 1. Ins. by Act 15 of 2005, s. 2 (w.e.f. 1 -1-2005). 2. Subs. by Act 38 of 2002, s. 3, for clause ( u) (w.e.f. 20 -5-2003). 3. Sub -clause ( B) omi tted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 4. Subs. by Act 38 of 2002 , s. 4, for clause ( b) (w.e.f. 20 -5-2003). 5. Ins. by s. 4, ibid. (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 3, for clause ( d) (w.e.f. 1 -1-2005). 10 (e) a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance; (f) the mere arrangement or re -arrangement or duplication of known devices each functioning independently of one another in a known way; 1* * * * * (h) a method of agriculture or horticulture; (i) any process for the medicinal, surgical, curative, prophylactic 2[diagnostic, therapeutic] or other treatment of human beings or any process for a similar treatment of animals 3*** to render them free of disease or to increase their economic value or that of their products. 2[(j) plants and animals in whole or any part thereof other than micro -organisms but including seeds, varieties and species and essentially biological processes for production or pr opagation of plants and animals ; (k) a mathematical or business method or a comp uter program me per se or algorithms; (l) a literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever including cinematographic works and television productions; (m) a mere scheme or rule or method of performing mental act or m ethod of playing game; (n) a presentation of information; (o) topography of integrated c ircuits; (p) an invention which, in effect, is traditional knowledge or which is an aggregation or duplication of known properties of traditionally known component or components.] 4. Inventions relating to atomic energy not patentable. No patent shall be granted in respect of an invention relating to atomic energy falling within sub -section ( 1) of section 20 of the Atomic Energy Act, 1962 (33 of 1962) . 5. [Inventions wh ere only methods or processes of manufacture patentable. ] Omitted by the Patents (Amendment) Act , 2005 (15 of 2005 ), s. 4 (w.e.f . 1-1-2005). CHAPTER III APPLICATIONS FOR PATENTS 6. Persons entitled to apply for patents. (1) Subject to the provisions contained in section 134, an application for a patent for an invention may be made by any of the foll owing persons, that is to say, (a) by any person claiming to be the true and f irst inventor of the invention; (b) by any person being the assignee of the person claiming to be the true and first inventor in respect of the right to make such an application; (c) by the legal representative of any deceased person who immediately before his death was entitled to make such an application. (2) An application under sub -section ( 1) may be made by any of the persons referred to therein either alone or jointly with any other person. 7. Form of application. (1) Every application for a patent shall be for one invention only and shall be made in the prescribed form a nd filed in the patent office. 1. Clause ( g) omitted by Act 38 of 2002, s. 4 (w.e.f. 20 -5-2003). 2. Ins. by s. 4, ibid. (w.e.f. 20 -5-2003). 3. The words or plants omitted by s. 4, ibid. (w.e

20 -5-2003). 3. The words or plants omitted by s. 4, ibid. (w.e.f. 20 -5-2003). 11 1[(1A) Every international application under the Patent Co operation Treaty for a patent, as may be filed designating India , shall be deemed to be an application under this Act, if a corresponding application has also been filed before the Controller in India.] 2[(1B) The filing date of an application referred to in sub -section ( 1A) and its complete specification processed by t he patent office as designated office or elected office shall be the international filing date accorded under t he Patent Cooperation Treaty. ] (2) Where the application is made by virtue of an assignment of the right to apply for a patent for the invention, there shall be furnished with the application, or within such period as may be prescribed after the filling of the application, proof of the right to make the application. (3) Every application under this section shall state that the applicant is in posse ssion of the invention and shall name the 3[person] claiming to be the true and first inventor; and where the person so claiming is not the applicant or one of the applicants, the application shall contain a declaration that the applicant believes the pers on so named to be the true and first inventor. 4[(4) Every such application (not being a convention application or an application filed under the Patent Cooperation Treaty designating India) shall be accompanied by a provisional or a complete specification .] 8. Information and undertaking regarding foreign applications. (1) Where an applicant for a patent under this Act is prosecuting either alone or jointly with any other person an application for a patent in any country outside India in respect of the sam e or substantially the same invention, or where to his knowledge such an application is being prosecuted by some person through whom he claims or by some person deriving title from him, he shall file along with his application 5[or subsequently 6[within th e prescribed period as the Controller may allow]] 7[(a) a statement setting out detailed particulars of such application; and] (b) an undertaking that, 8[up to the date of grant of patent in India], he would keep the Controller informed in writing, from time to time, of 9[detailed particulars as required under] clause ( a) in respect of every other application relating to the same or substantially the same invention, if any, filed in any country outside India subsequently to the filing of the statement referred to in the aforesaid clause within the prescribed time. 10[(2) At any time after an application for patent is filed in India and till the grant of a pa tent or refusal to grant of a patent made thereon, the Controller may also require the applicant to furnish details, as may be prescribed, relating to the processing of the application in a country outside India, and in that event the applicant shall furni sh to the Controller information available to him within such period as may be prescribed.] 9. Provisional and complete specifications. 11[(1) Where an application for a patent (not being a convention application or an application filed under the Patent Cooperation Treaty designating India) is accompanied by a provisional specification, a complete specification shall be filed within twelve months from the date of filing of the application, and if the complete specification is not so filed, the application shall be deemed to be abandoned .] 1. Ins. by Act 38 of 2002, s. 6 (w.e.f. 20 -5-2003). 2. Ins. by Act 15 of 2005, s. 5 (w.e.f. 1 -1-2005). 3. Subs. by s. 5, ibid., for owner (w.e.f. 1 -1-2005). 4. Subs. by s. 5, ibid., for sub -section ( 4) (w.e.f. 1 -1-2005). 5. Ins. by Act 38 of 2002, s. 7 (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 6, for certain words (w.e.f. 1 -1-2005). 7. Subs. by A ct 38 of 2002, s. 7, for clause ( a) (w.e.f. 20 -5-2003). 8. Subs. by Act 15 of 2005, s. 6, for up to the date of the acceptance of his complete specification filed in India (w.e.f. 1 -1-2005). 9. Subs. by Act 38 of 2002, s. 7, for details of the nature re ferred to in (w.e.f. 20 -5-2003). 10. Subs. by Act 15 of 2005, s. 6, for sub -section ( 2) (w.e.f. 1 -1-2005). 11. Subs. by s. 7, ibid., for sub -section ( 1) (w.e.f. 1 -1-2005). 12 (2) Where two or more applications in the name of the same applicant are accompanied by provisional specifications in respect of inventions which are cognate or of which one is a modification of another and the Controller is of opinion that the whole of such inventions are such as to constitute a single invention and may properly be included in one patent, he may allow one complete specification to be filed in respect of all such provisional specifications: 1[Provided that the period of time specified under sub -section ( 1) shall be reckoned from the date of filing of the earliest provisional specification .] 2[(3) Where an application for a patent (not being a convention application or an application filed under the Patent C ooperation Treaty designating India) is accompanied by a specification purporting to be a complete specification, the Controller may, if the applicant so requests at any time within twelve months from the date of filing of the application, direct that such specification shall be treated, for the purposes of this Act, as a provisional specification and proceed with the application accordingly .] (4) Where a complete specification has been filed in pursuance of an application for a patent accompanied by a prov isional specification or by a specification treated by virtue of a direction under sub-section ( 3) as a provisional specification, the Controller may, if the applicant so requests at any time before 3[grant of patent] , cancel the provisional specification and post -date the application to the date of filing of the complete specification. 10. Contents of specification s.(1) Every specification, whether provisional or complete, shall describe the invention and shall begin with a title suff iciently indicating t he subject -matter to which the invention relates. (2) Subject to any rules that may be made in this behalf under this Act, drawings may, and shall, if the Controller so requires, be supplied for the purposes of any specification, whether complete or provisional ; and any drawings so supplied shall, unless the Controller otherwise directs, be deemed to form part of the specification, and references in this Act to a specification shall be construed accordingly. (3) If, in any particular case , the Controller considers that an application should be further supplemented by a model or sample of anything illustrating the invention or alleged to constitute an invention, such model or sample as he may require shall be furnished 4[before the applicat ion is found in order for grant of a patent] , but such model or sample shall not be deemed to form part of the specification. (4) Every com plete specification shall (a) fully and particularly describe the invention and its operation or use and the method by which it is to be performed; (b) disclose the best method of performing the invention which is known to the applicant and for which he is entitled to claim protection; and (c) end with a claim or claims defining the scope of the invention for which prot ection is claimed. 5[(d) be accompanied by an abstract to provide technical information on the invention: Provided that (i) the Controller may amend the abstract for providing better information to third parties; and 1. The p roviso ins. by Act 15 of 2005, s. 7 (w.e.f. 1 -1-2005). 2. Subs. by s. 7, ibid., for sub -section ( 3) (w.e.f. 1 -1-2005). 3. Subs. by s. 7, ibid., for the acceptance of the complete specification (w.e.f. 1 -1-2005). 4. Subs. by s. 8, ibid., for before the acceptance of the application (w.e.f. 1 -1-2005). 5. Ins. by Act 38 of 2002, s. 8 (w.e.f. 20 -5-2003). 13 (ii) if the applicant mentions a biological material in the specification which may not be described in such a way as to satisfy clauses (a) and ( b), and if such material is not available to the public, the application shall be completed by depositing 1[the material to an international depository authority under the Budapest Treaty] and by fulfilling the following conditions, namely : 2[(A) the deposit of the material shall be made not later than the date of filing the patent application in India and a reference thereof shall be made in th e specification within the prescribed period]; (B) all the available characteristics of the material required for it to be correctly identified or indicated are included in the specification including the name, address of the depository institution and the date and number of the deposit of the material at the institution; (C) access to the material is available in the depository institution only after the date of the applica tion for patent in India or if priority is claimed after the date of the priority; (D) disclose the source and geographical origin of the biological material in the specification, when used in an invention.] 3[(4A) In case of an international application designating India, the title, description, drawings, abstract and claims filed with the application shall be taken as the complete specification for the purposes of this Act .] 4[(5) The claim or claims of a complete specification shall relate to a single invention, or to a group of inventions linked so as to form a single inventive concept, shall be clear and succinct and shall be fairly based on the matter disclosed in the specification.] (6) A declaration as to the inventorship of the invention shall, in such cases as may be prescribed, be furnished in the prescribed form with the complete specification or within such period as may be prescribed after th e filing of that specification. (7) Subjec t to the foregoing provisions of this section, a complete specification filed after a provisional specification may include claims in respec t of developments of, or additions to, the invention which was described in the provisional specification, being developments or additions in respect of which the applicant would be entitled under the provisions of section 6 to make a separate application for a patent. 11. Priority dates of claims of a complete specification. (1) There shall be a priority date for each claim of a complete specification. (2) Where a complete specification is filed in pursuance of a si ngle application accompanied by (a) a provisional specification; or (b) a specification which is treated by virtue of a direction under sub -section ( 3) of section 9 as a provisional specification, and the claim is fairly based on the matter disclosed in the specification referred to in clause (a) or clause ( b), the priority date of that claim shall be the date of the filing of the relevant specification. (3) Where the complete specification is filed or proceeded with in pursuance of two or more applications accompanied by such sp ecifications as are mentioned in sub -section ( 2) and the claim is fairly based on the matter disclosed (a) in one of those specifications, the priority date of that claim shall be the date of the filing of the application ac companied by that specification ; 1. Subs. by Act 15 of 2005, s. 8, for certain words (w.e.f. 1 -1-2005). 2. Subs. by s. 8, ibid., for sub -clause ( A) (w.e.f. 1 -1-2005). 3. Subs. by s. 8, ibid., for sub -section ( 4A) (w.e.f. 1 -1-2005). 4. Subs. by Act 38 of 2002 , s. 8, for sub -section ( 5) (w.e.f. 20 -5-2003). 14 (b) partly in one and partly in another, the priority date of that claim shall be the date of the filing of the application accompanied by the specification of the later da te. 1[(3A) Where a complete specification based on a previously filed application in India has been filed within twelve months from the date of that application and the claim is fairly based on the matter disclosed in the previously filed application, the priority date of that claim shall be the date of the previously filed application in which the matter was first disclosed. ] (4) Where the complete specification has been filed in pursuance of a further application made by virtue of sub -section ( 1) of section 16 and the claim is fairly based on the matter disclosed in any of the earlier specifications, provisional or complete, as the case may be, the priority date of that claim shall be the date of the filing of that specification in which the matter was first disclosed. (5) Where, under the foregoing provisions of this section, any claim of a complete specification would, but for the provisions of this sub -section, have two or more priority dates, the priority date of that claim shall be the earlier or earliest of those dates. (6) In any case to which sub -sections ( 2), (3), 1[(3A)], (4) and (5) do not apply, the priority date of a claim shall, subject to the provisions of section 137, be the date of filing of the complete specification. (7) The reference to the date of the filing of the application or of the complete specification in this section shall, in cases where there has been a post -dating under section 9 or section 17 or, as the case may be, ante -dating under section 16, be a reference to the date as so post -dated or ante -dated. (8) A claim in a complete specification of a patent shall n ot be invalid by reason only of (a) the publication or use of the invention so far as claimed in that claim on or after the priority date of such claim; or (b) the grant of another patent which claims the invention, so far as claimed in the first m entioned claim, in a claim of the same or a later priority date. CHAPTER IV 2[PUBLICATION AND EXAMINATION OF APPLICATIONS ] 3[11

date. CHAPTER IV 2[PUBLICATION AND EXAMINATION OF APPLICATIONS ] 3[11A. Publication of applications. 4[(1) Save as otherwise provided, no application for patent shall ordinarily be open ed to the public for such period as may be prescribed. (2) The applicant may, in the prescribed manner, request the Controller to publish his application at any time before the expiry of the period prescribed under sub -section ( 1) and subject to the provisio ns of sub-section ( 3), the Controller shall publish such application as soon as possible. (3) Every application for a patent shall, on the expiry of the period specified under sub -section ( 1), be published, except in cases where the application (a) in whi ch secrecy direction is imposed under section 35; or (b) has been abandoned under sub -section ( 1) of section 9; or (c) has been withdrawn three months prior to the period specified under sub -section ( 1)]. 1. Ins. by Act 15 of 2005, s. 9 (w.e.f. 1 -1-2005). 2. Subs. by Act 38 of 2002, s. 9, for the Chapter heading EXAMINATION OF APPLICATION (w.e.f. 20 -5-2003). 3. Ins. by s. 9, ibid. (w.e.f. 20 -5-2003). 4. Subs . by Act 15 of 2005, s. 10, for sub -sections ( 1) to ( 3) (w.e.f. 1 -1-2005). 15 (4) In case a secrecy direction has been given in respect of an application under section 35, then , it shall be published after the expiry of the period 1[prescribed under sub -section ( 1)] or when the secrecy direction has ceased to operate, whichever is later. (5) The publication of every application under this section shall include the particulars of the date of application, number of application, name and address of the applicant identifying the application and an abstract. (6) Upon publication of an application for a patent under this section (a) the depository institution shall make the biological material men tioned in the specification available to the public; (b) the patent office may, on payment of such fee as may be prescribed, make the specification and drawings, if any, of such application available to the public. 2[(7) On and from the date of publication of the application for patent and until the date of grant of a patent in respect of such application, the applicant shall have the like privileges and rights as if a patent for the invention had been granted on the date of publication of the application: Provided that the applicant shall not be entitled to institute any proceedings for infringement until the patent has been granted: Provided further that the rights of a patentee in respect of applications made under sub -section ( 2) of section 5 before the 1st day of January, 2005 shall accrue from the date of grant of the patent : Provided also that after a patent is granted in respect of applications made under sub -section ( 2) of section 5, the patent -holder shall only be entitled to receive reasonable royalty from such enterprises which have made significant investment and were producing and marketing the concerned product prior to the 1st day of January, 2005 and which continue to manufacture the product covered by the patent on the date of grant of the patent and no infringement proceedings shall be instit uted against such enterprises.] 11B. Request for examination .3[(1) No application for a patent shall be examined unless the applicant or any other interested person makes a request in the prescribed manner for such examination within the prescribed period.] 4* * * * * 5[(3) In case of an application in respect of a claim for a patent filed u nder sub -section ( 2) of section 5 before the 1st day of January, 2005 a request for its examination shall be made in the prescribed manner and within the prescribed period by the applicant or any other interested person.] (4) In case the applicant or any o ther interested person does not make a request for examination of the application for a patent within the period as specified under sub -section ( 1) 6*** or sub -section ( 3), the application shall be treate d as withdrawn by the applicant : 7[Provided that (i) the applicant may, at any time after filing the application bu t before the grant of a patent , withdraw the application by making a request in the prescribed manner; and (ii) in a case where secrecy direction has been issued under section 35, the request for examination may be made within the prescribed period from the date of revocation of the secrecy direction.] 1. Subs. by Act 15 of 2005, s. 10, for of eighteen months (w.e.f. 1 -1-2005). 2. Ins. by s. 10, ibid. (w.e.f. 1 -1-2005). 3. Subs. by s. 11, ibid., for sub -section ( 1) (w.e.f. 1 -1-2005). 4. Sub -section ( 2) omitted by s. 11, ibid. (w.e.f. 1 -1-2005). 5. Subs. by s. 11, ibid., for sub -section ( 3) (w.e.f. 1 -1-2005). 6. The words, brackets and figure or sub -section ( 2) omitted by s. 11, ibid. (w.e.f. 1 -1-2005). 7. Subs . by s. 11, ibid., for the proviso (w.e.f. 1 -1-2005). 16 12. Examination of application. 1[(1) When a request for examination has been made in respect of an application for a patent in the prescribed manner 2[under sub -section ( 1) or sub -section ( 3) of section 11B, the application and specification and other documents related thereto shall be referred at the earliest by the Controller ] to an examiner for making a report to him in respect of the following matters, namely: (a) whether the application and the 3[specification and other documents relating thereto ] are in accordance with the requirements of this Act and of any rules made thereunde r; (b) whether there is any lawful ground of objection to the grant of the patent under this Act in pursuance of the application; (c) the result of investigations made under section 13; and (d) any ot her matter which may be prescribed. (2) The examiner to whom the application and the 3[specification and other documents relating thereto ] are referred under sub -section ( 1) shall ordinarily make the report to the Controller within 4[such period as may be prescribed] . 13. Search for antic ipation by previous publication and by prior claim. (1) The examiner to whom an application for a patent is referred under section 12 shall make investigation for the purpose of ascertaining whether the invention so far as claimed in any claim of the complete specification (a) has been anticipated by publication before the date of filing of the applicant s complete specification in any specification filed in pursuance of an application for a patent made in India and dated o n or after the 1st day of January, 1912; (b) is claimed in any claim of any other complete specification published on or after the date of filing of the applicant s complete specification, being a specification filed in pursuance of an application for a pa tent made in India and dated before or claiming the priority date earlier than that date. (2) The examiner shall, in addition, make such investigation 5*** for the purpose of ascertaining whether the invention, so far as claimed in any claim of the complet e specification, has been anticipated by publication in India or elsewhere in any document other than those mentioned in sub -section ( 1) before the date of filing of the applicant s complete specification. (3) Where a complete specification is amended unde r the provisions of this Act before 6[the grant of a patent] , the amended specification shall be examined and investigated in like manner as the original specification. (4) The examination and investigations required under section 12 and this section shall not be deemed in any way to warrant the validity of any patent, and no liability shall be incurred by the Central Government or any officer thereof by reason of, or in connection with, any such examination or investigation or any report or other proceedin gs consequent thereon. 7[14. Consideration of report of examiner by Controller .Where, in respect of an application for a patent, the report of the examiner received by the Controller is adverse to the applicant or requires any amendment of the application , the specification or other documents to ensure compliance with the provisions of this Act or of the rules made thereunder, the Controller, before proceeding to dispose of the application in accordance with the provisions hereinafter appearing, shall comm unicate as expeditiously as possible the gist of the objections to the applicant and shall, if so required by the applicant within the prescribed period, give him an opportunity of being heard. 1. Subs. by Act 38 of 2002, s. 10, for certain words (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 12, for certain words, brackets, figures and letter (w.e.f. 1 -1-2005). 3. Subs. by Act 38 of 2002 , s. 10, for specification relating thereto (w.e.f. 20 -5-2003). 4. Subs. by Act 15 of 2005, s. 12, for a period of eighteen months from the date of such reference (w.e.f. 1 -1-2005). 5. The words as the Controller may direct omitted by Act 38 of 200 2, s. 11 (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 13, for it has been accepted (w.e.f. 1 -1-2005). 7. Subs. by s. 14, ibid., for sections 14 and 15 (w.e.f. 1 -1-2005). 17 15. Power of Controller to refuse or require amended applicati ons, etc., in certain cases .Where the Controller is satisfied that the application or any specification or any other document filed in pursuance thereof does not comply with the requirements of this Act or of any rules made thereunder, the Controller may refuse the application or may require the application, specification or the other documents, as the case may be, to be amended to his satisfaction before he proceeds with the application and refuse the a pplication on failure to do so. ] 16. Power of Controller to make orders respecting division of application. (1) A person who has made an application for a patent under this Act may, at any time 1[before the grant of the patent] , if he so desires, or with a view to remedy the objection rai sed by the Controller on the ground that the claims of the complete specification relate to more than one invention, file a further application in respect of an invention disclosed in the provisional or complete specification already filed in respect of th e first mentioned application. (2) The further application under sub -section ( 1) shall be accompanied by a complete specification, but such complete specification shall not include any matter not in substance disclosed in the complete specification filed i n pursuance of the first mentioned application. (3) The Controller may require such amendment of the complete specification filed in pursuance of either the original or the further application as may be necessary to ensure that neither of the said complete specifications includes a claim for a ny matter claimed in the other. 2[Explanation . For the purposes of this Act, the further application and the complete specification accompanying it shall be deemed to have been filed on the date on which the first mentioned application had been filed, and the further application shall be proceeded wit h as a substantive application and be examined when the request for examination is filed within the prescribed period.] 17. Power of Controller to make orders respecting dating of application. (1) Subject to the provisions of section 9, at any time after t he filing of an application and 3[before the grant of the patent] under this Act, the Controller may, at the request of the applicant made in the prescribed manner, direct that the application shall be post -dated to such date as may be specified in the req uest, and proceed with the application accordingly: Provided that no application shall be post -dated un der this sub -section to a date later than six months from the date on which it was actually made or would, but for the provisions of this sub -section, be deemed to have been made. 4[(2) Where an application or specification (including drawings) or any other document s is required to be amended under section 15, the application or specification or other document shall, if the Controller so directs, be deemed to have been made on the date on which the requirement is complied with or where the application or specification or other document is returned to the applicant , on the date on which it is refiled after complying with the requirement.] 18. Power of Controller in cases of anticipation. (1) Where it appears to the Controller that the invention so far as claimed in any claim of the complete specification has been anticipated in the manner referred to in clause ( a) of sub -section ( 1) or sub -section ( 2) of section 13, he may refuse to 5[the application] unless the applicant (a) shows to the satisfaction of the Controller that the priority date of the claim of his complete specification is not later than the date on which the relevant document was published; or (b) amends his complete specification to the satisfaction of the Controller. 1. Subs. by Act 15 of 2005, s. 15, for before the acceptance of the complete specification (w.e.f. 1 -1-2005). 2. Subs. by s. 15, ibid., for the Explanation (w.e.f. 1 -1-2005). 3. Subs. by s. 16, ibid., for before the acceptance of the complete specification (w.e.f. 1 -1-2005). 4. Subs. by Act 38 of 2002, s. 13, for sub -section ( 2) (w.e.f. 20 -5-2003). 5. Subs. by Act 15 of 2005, s. 17, for to accept the complete specification (w.e.f. 1 -1-2005

005, s. 17, for to accept the complete specification (w.e.f. 1 -1-2005). 18 (2) If it appears to the Controller t hat the invention is claimed in a claim of any other complete specification referred to in clause ( b) of sub -section ( 1) of section 13, he may, subject to the provisions hereinafter contained, direct that a reference to that other specification shall be in serted by way of notice to the public in the applicant s complete specification unless within such time as may be prescribed, (a) the applicant shows to the satisfaction of the Controller that the priority date of his claim is not later than the priority date of the claim of t he said other specification; or (b) the complete specification is amended to the satisfaction of the Controller. (3) If it appears to the Controller, as a result of an investigation under section 13 or otherwise, (a) that the inventi on so far as claimed in any claim of the applicant s complete specification has been claimed in any other complete specification referred to in clause ( a) of su b-section ( 1) of section 13; and (b) that such other complete specification was pu blished on or after the priority date of the applicant s claim, then, unless it is shown to the satisfaction of the Controller that the priority date of the applicant s claim is not later than the priority date of the claim of that specification, the provisions of sub -section ( 2) shall apply thereto in the same manner as they apply to a specification published on or after the date of filing of the applicant s complete specification. 1* * * * * 19. Powers of Controller in case of potential infrin gement. (1) If, in consequence of the investigations required 2[under this Act] , it appears to the Controller that an invention in respect of which an application for a patent has been made cannot be performed without substantial risk of infringement of a claim of any other patent, he may direct that a reference to that other patent shall be inserted in the applicant s complete specification by way of notice to the public, unless within such time as may be prescribed (a) the applicant shows to the satisfac tion of the Controller that there are reasonable grounds for contesting the validity of the said claim of the other patent; or (b) the complete specification is amended to the satisfaction of the Controller. (2) Where, after a reference to another patent h as been inserted in a complete specification in pursuance of a direction under sub -section ( 1) (a) that other patent is revoked or otherwise ceases to be in force; or (b) the specification of that other patent is amended by the deletion of the relevant claim; or (c) it is found, in proceedings before the court or the Controller, that the relevant claim of that other patent is invalid or is not infringed by any working of the applicant s invention, the Controller may, on the application of the applicant, delete the reference to that other patent. 20. Powers of Controller to make orders regarding substitution of applica nts, etc.(1) If the Controller is satisfied, on a claim made in the prescribed manner at any time before a patent has been granted, that by virtue of any assignment or agreement in writing made by the applicant or one of the applicants for the patent or by operation of law, the claimant would, if the patent were then granted be entitled thereto or to the interest of the applicant therein, or to an undivided share of the patent or of that interest, the Controller may, subject to the provisions of this section, direct that the application shall proceed in the name of the claimant or in the names of the claimants and the applicant or the other jo int applicant or applicants, accor dingly as the case may require. (2) No such direction as aforesaid shall be given by virtue of any assignment or agreement made by one of two or more joint applicants for a patent except with the consent of the other joint applicant or applicants. 1. Sub -section ( 4) omitted by Act 15 of 2005, s. 17 (w.e.f. 1 -1-2005). 2. Subs. by s. 18, ibid., for by the foregoing provisi ons of this Act or of proceedings under section 25 (w.e.f. 1 -1-2005). 19 (3) No such direction as aforesaid shall be given by virtue of any assignment or agreement for the assignment of the benefit of an invention unless (a) the invention is identified therein by reference to the number of the applica tion for the patent; or (b) there is produced to the Controller an acknowledgment by the person by whom the assignment or agreement was made that the assignment or agreement relates to the invention in respect of which that application is m ade; or (c) the rights of the claimant in respect of the invention have been finally established by the decision of a court; or (d) the Controller gives directions for enabling the application to proceed or for regulating the manner in which it should be p rocee ded with under sub -section ( 5). (4) Where one of two or more joint applicants for a patent dies at any time before the patent has been granted, the Controller may, upon a request in that behalf made by the survivor or survivors, and with the consent of the legal representative of the decea sed, direct that the application shall proceed in the name of the survivor or survivors alone. (5) If any dispute arises between joint applicants for a patent whether or in what manner the application should be proceeded with, the Controller may, upon appl ication made to him in the prescribed manner by any of the parties, and after giving to all parties concerned an opportunity to be heard, give such directions as he thinks fit for enabling the application to proceed in the name of one or more of the partie s alone or for regulating the manner in which it should be proceeded with, or for both those purposes, as the case may require. 1[21. Time for putting application in order for grant .(1) An application for a patent shall be deemed to have been abandoned un less, within such period as may be prescribed, the applicant has complied with all the requirements imposed on him by or under this Act, whether in connection with the complete specification or otherwise in relation to the application from the date on whic h the first statement of objections to the application or complete specification or other documents related thereto is forwarded to the applicant by the Controller. Explanation .Where the application for a patent or any specification or, in the case of a c onvention application or an application filed under the Patent Cooperation Treaty designating India any document filed as part of the application has been returned to the applicant by the Controller in the course of the proceedings, the applicant shall not be deemed to have complied with such requirements unless and until he has refiled it or the applicant proves to the satisfaction of the Controller that for the reasons beyond his control such document could not be refiled. (2) If at the expiration of the period as pr escribed under sub -section ( 1), (a) an appeal to the High Court is pending in respect of the application for the patent for the main invention; or (b) in the case of an application for a patent of addition, an appeal to the High Court is pendi ng in respect of either that application or the application for the main invention, the time within which the requirements of the Controller shall be complied with shall, on an application made by the applicant before the expiration of the period as prescr ibed under sub -section ( 1), be extended until such date as the High Court may determine. (3) If the time within which the appeal mentioned in sub -section ( 2) may be instituted has not expired, the Controller may extend the period as prescribed under sub-section ( 1), to such further period as he may determine: Provided that if an appeal has been filed during the said further period, and the High Court has granted any extension of time for complying with the requirements of the Controller, then the requirements may be complied with within the time granted by the Court.] 1. Subs. by Act 15 of 2005, s. 19, for section 21 (w.e.f. 1 -1-2005). 20 22. [Acceptance of complete specification .]Omitted by Act The Patents (Amendment) Act, 2005 (15 of 2005 ), s. 20 ( w.e.f . 1-1-2005). 23. [Advertisement of acceptance of complete specification .]Omitted by s. 20, ibid. (w.e.f . 1-1-2005). 24. [Effect of acceptance of complete specification .]Omitted by s. 20, ibid. (w.e.f. 1-1-2005). 1* * * * * CHAPTER V 2[OPPOSITION PROCE EDINGS TO GRANT OF PATENTS ] 3[25. Opposition to the patent. (1) Where an application for a patent has been published but a patent has not been granted, any person may, in writing, represent by way of opposition to the Controller against th e grant of patent on the ground (a) that the applicant for the patent or the person under or through whom he claims, wrongfully obtained the invention or any part thereof from him or from a person under or through whom he claims; (b) that the invention so far as claimed in any c laim of the complete specification has been published before the priority date of the claim (i) in any specification filed in pursuance of an application for a patent made in India on or after the 1st day of January, 1912; or (ii) in India or elsewhere, in any other document: Provided that the ground specified in sub -clause ( ii) shall not be available where such publication does not constitute an anticipation of the invention by virtue of sub -section ( 2) or sub-section ( 3) of section 29; (c) that the invention so far as claimed in any claim of the complete specification is claimed in a claim of a complete specification published on or after the priority date of the applicant s claim and filed in pursuance of an application for a patent in India, being a claim of which the priority date is earlier than that of the applicant s claim; (d) that the invention so far as claimed in any claim of the complete specification was pu blicly known or publicly used i n India before the priority date of that claim. Expla nation .For the purposes of this clause, an invention relating to a process for which a patent is claimed shall be deemed to have been publicly known or publicly used in India before the priority date of the claim if a product made by that process had alre ady been imported into India before that date except where such importation has been for the purpose of reasonable trial or experiment only; (e) that the invention so far as claimed in any claim of the complete specification is obvious and clearly does not involve any inventive step, having regard to the matter published as mentioned in clause ( b) or having regard to what was used in India before the priority date of the applicant s claim; (f) that the subject of any claim of the complete specification is n ot an invention within the meaning of this Act, or is not patentable under this Act; (g) that the complete specification does not sufficiently and clearly describe the invention or the method by which it is to be performed; (h) that the applicant has faile d to disclose to the Controller the information required by section 8 or has furnished the information which in any material particular was false to his knowledge; (i) that in the case of a convention application, the application was not made within twelve months from the date of the first application for protection for the invention made in a convention country by the applicant or a person from whom he derives title; 1. Chapter IVA omitted by s. 21, ibid. (w.e.f. 1 -1-2005). 2. Subs. by s. 22, ibid., for Chapter Heading (w.e.f. 1 -1-2005). 3. Subs. by s. 23, ibid., for sections 25 and 26 (w.e.f. 1 -1-2005). 21 (j) that the complete specification does not disclose or wrongly mentions the source or geographical origin of biological material used for the invention; (k) that the invention so far as claimed in any claim of the complete specification is anticipated having regard to the knowledge, oral or otherwise, available within any local or indigenous community in India or els ewhere, but on no other ground and the Controller shall, if requested by such person for being heard, hear him and dispose of such representation in such manner and within such period as may be prescribed. (2) At any time after the grant of patent but before the expiry of a period of one year from the date of publication of grant of a patent, any person interested may give notice of opposition to the Controller in the prescribed manner on any of the following ground s, namely: (a) that the patentee or the person under or through whom he claims, wrongfully obtained the invention or any part thereof from him or from a person under or through whom he claims; (b) that the invention so far as claimed in any claim of the complete specifica tion has been published before the priority date of the claim (i) in any specification filed in pursuance of an application for a patent made in India on or after the 1st day of January, 1912; or (ii) in India or elsewhere, in any other document: Provided that the ground specified in sub -clause ( ii) shall not be available where such publication does not constitute an anticipation of the invention by virtue of sub -section ( 2) or sub-section ( 3) of section 29; (c) that the invention so far as claimed in any claim of the complete specification is claimed in a claim of a complete specification published on or after the priority date of the claim of the patentee and filed in pursuance of an application for a patent in India, being a claim of which the priority date is earlier than that of the claim of the patentee; (d) that the invention so far as claimed in any claim of the complete specification was publicly known or publicly used in India before the priority date of that claim. Explanation .For the purposes of this clause, an invention relating to a process for which a patent is granted shall be deemed to have been publicly known or publicly used in India before the priority date of the claim if a product made by that process had already been imported into In dia before that date except where such importation has been for the purpose of reasonable trial or experiment only; (e) that the invention so far as claimed in any claim of the complete specification is obvious and clearly does not involve any inventive st ep, having regard to the matter published as mentioned in clause ( b) or having regard to what was used in India before the priority date of the claim; (f) that the subject of any claim of the complete specification is not an invention within the meaning of this Act, or is not patentable under this Act; (g) that the complete specification does not sufficiently and clearly

meaning of this Act, or is not patentable under this Act; (g) that the complete specification does not sufficiently and clearly describe the invention or the method by which it is to be performed; (h) that the patentee has failed to disclose to the Controller the information required by section 8 or has furnished the information which in any material particular was false to his knowledge; (i) that in the case of a patent granted on convention applicat ion, the application for patent was not made within twelve months from the date of the first application for protection for the invention made in a convention country or in India by the patentee or a person from whom he derives title; (j) that the complete specification does not disclose or wrongly mentions the source and geographical origin of biological material used for the invention; 22 (k) that the invention so far as claimed in any claim of the complete specification was anticipated having regard to the knowledge, oral or otherwise, available within any local or indigenous community in India or elsewhere, but on no other ground. (3) (a) Where any such noti ce of opposition is duly given under sub -section ( 2), the Controller shall notify the patentee. (b) On receipt of such notice of opposition, the Controller shall, by order in writing, constitute a Board to be known as the Opposition Board consisting of such officers as he may determine and refer such notice of opposition along with the documents to th at Board for examination and submission of its recommendations to the Controller. (c) Every Opposition Board constituted under clause ( b) shall conduct the examination in accordance with such procedure as may be prescribed. (4) On receipt of the recommendation of the Opposition Board and after giving the patentee and the opponent an opportunity of being heard, the Controller shall order either to maintain or to amend or to revoke the patent. (5) While passing an order under sub -section ( 4) in respect of the gro und mentioned in clause ( d) or clause (e) of sub -section ( 2), the Controller shall not take into account any personal document or secret trial or secret use. (6) In case the Controller issues an order under sub -section ( 4) that the patent shall be maintain ed subject to amendment of the specification or any other document, the patent s hall stand amended accordingly. 26. In cases of obtaining Controller may treat the patent as the patent of opponent .(1) Where in any opposition proceeding under thi s Act the Controller finds that (a) the invention, so far as claimed in any claim of the complete specification, was obtained from the opponent in the manner set out in clause ( a) of sub -section ( 2) of section 25 and revokes the patent on that ground, he may, on request by such opponent made in the prescribed manner, direct that the patent shall stand amended in the name of the opponent; (b) a part of an invention described in the complete specification was so obtained from the opponent, he may pass an order requiring that the specification be amended by the exclusion of that part of the invention. (2) Where an opponent has, before the date of the order of the Controller requiring the amendment of a complete specification referre d to in clause ( b) of sub -section ( 1), filed an application for a patent for an invention which included the whole or a part of the invention held to have been obtained from him and such application is pending, the Controller may treat such application and specification in so far as they relate to the invention held to have been obtained from him, as having been filed, for the purposes of this Act relating to the priority dates of claims of the complete specification, on the date on which the corresponding document was or was deemed to have been filed by the patentee in the earlier application but for all other purposes the application of the opponent shall be proceeded with as an application for a patent under this Act.] 27. [Refusal of patent without oppos ition.]Omitted by Act the Patents (Amendment) Act, 2005 (15 of 2005), s. 20 ( w.e.f . 1-1-2005). 28. Mention of inventor as such in patent. (1) If the Controller is satisfied, upon a request or claim made in accordance with the provisions of this section, (a) that the person in respect of or by whom the request or claim is made is the inventor of an invention in respect of which application for a patent has been made, or of a substantial part of that invention; and (b) that the application for the patent is a direct consequence of his being the inventor, 23 the Controller shall, subject to the provisions of this section, cause him to be mentioned as inventor in any patent granted in pursuance of the application in the complete speci fication a nd in the register of Patents: Provided that the mention of any person as inventor under this section shall not confer or derogate from any rights under the patent. (2) A request that any person shall be mentioned as aforesaid may be made in the prescribed manner by the applicant for the patent or (where the person alleged to be the inventor is not the applicant or one of the applicants) by the applicant and that person. (3) If any person [other than a person in respect of whom a request in relati on to the application in question has been made under sub -section ( 2)] desires to be mentioned as aforesaid, he may make a claim in the prescribed manner in that behalf. 1[(4) A request or claim under the foregoing provisions of this section shall be made before the grant of patent.] 2* * * * * (6) 3[Where] a claim is made under sub -section ( 3), the Controller shall give notice of the claim to every applicant for the patent (not being the claimant) and to any other person whom the Controller may consider to be interested; and before deciding upon any request or claim made under sub -section ( 2) or sub-section ( 3), the Controller shall, if required, hear the person in respect of or by whom the request or claim is made, and, in the case of a claim under sub-section ( 3), any person to whom notice of the claim has been given as aforesaid. (7) Where any person has been mentioned as inventor in pursuance of this section any other person who alleges that he ought not to have been so mentioned may at any time apply to the Controller for a certificate to that effect , and the Controller may, after hearing, if required, any person whom he may consider to be interested, issue such a certificate, and if he does so, he shall rectify the specification and the register accordingly. CHAPTER VI ANTICIPATION 29. Anticipation by previous publication. (1) An invention claimed in a complete specification shall not be deemed to have been anticipated by reason only that the invention was published in a specification filed in pursuance of an application for a patent made in India and dated before the 1st day of January, 1912. (2) Subject as hereinafter provided, an invention claimed in a complete specification shall not be deemed to have been anticipated by reason only that the invention was published before the priority date of the relevant claim of the speci fication, if the patentee or the applicant for the patent proves (a) that the matter published was obtained from him, or (where he is not himself the true and first inventor) from any person from whom he derives title, and was published without his consen t or the consent of any such person; and (b) where the patentee or the applicant for the patent or any person from whom he derives title learned of the publication before the date of the application for the patent, or, in the case of a convention applicati on, before the date of the application for protection in a convention country, that the application or the application in the convention country, as the case may be, was made as soon as reasonably practicable thereafter: 1. Subs. by Act 15 of 2005, s. 25, for sub -section ( 4) (w.e.f. 1 -1-2005). 2. Sub -section ( 5) omitted by s. 25, ibid. (w.e.f. 1 -1-2005). 3. Subs. by s. 25, ibid., for Subject to the provisions of sub -section ( 5), where (w.e.f. 1 -1-2005). 24 Provided that this sub -section shal l not apply if the invention was before the priority date of the claim commercially worked in India, otherwise than for the purpose of reasonable trial, either by the patentee or the applicant for the patent or any person from whom he derives title or by a ny other person with the consent of the patentee or the applicant for the patent or any person from whom he derives title. (3) Where a complete specification is filed in pursuance of an application for a patent made by a person being the true and first inv entor or deriving title from him, an invention claimed in that specification shall not be deemed to have been anticipated by reason only of any other application for a patent in respect of the same invention made in contravention of the rights of that pers on, or by reason only that after the date of filing of that other application the invention was used or published, without the consent of that person, by the applicant in respect of that other application or by any other person in consequence of any disclo sure of any invention by that applicant. 30. Anticipation by previous communication to Government. An invention claimed in a complete specification shall not be deemed to have been anticipated by reason only of the communication of the invention to the Gov ernment or to any person authorised by the Government to investigate the invention or its merits, or of anything done, in consequence of such a communication, for the purpose of the investigation. 31. Anticipation by public display, etc. An invention claim ed in a complete specification shall not be deemed to have been anticipated by reason only of (a) the display of the invention with the consent of the true and first inventor or a person deriving title from him at an industrial or other exhibition to whic h the provisions of this section have been extended by the Central Government by notification in the Official Gazette, or the use thereof with his consent for the purpose of such an exhibition in the place where it is held; or (b) the publication of any de scription of the invention in consequence of the display or use of the invention at any such exhibition as aforesaid; or (c) the use of the invention, after it has been displayed or used at any such exhibition as aforesaid and during the period of the exhi bition, by any person without the consent of the true and first inventor or a person deriving title from him; or (d) the description of the invention in a paper read by the true and first inventor before a learned society or published with his consent in t he transactions of such a society, if the application for the patent is made by the true and first inventor or a person deriving title from him 1[not later than twelve months ] after the opening of the exhibition or the reading or publication of the paper, as the case may be. 32. Anticipation by public working. An invention claimed in a complete specification shall not be deemed to have been anticipated by reason only that at any time within one year before the priority date of the relevant claim of the specification, the invention was publicly worked in India (a) by the patentee or applicant for the patent or any person from whom he derives title; or (b) by any other person with the consent of the patentee or applicant for the patent or any per son from whom he derives title, if the working was effected for the purpose of reasonable trial only and if it was reasonably necessary, having regard to the nature of the invention, that the working for that purpose should be effected in public. 33. Anticipation b y use and publication after provisional specification. (1) Where a complete specification is filed or proceeded with in pursuance of an application which was accompanied by a provisional specification or where a complete specification filed along with an a pplication is treated by virtue of a direction under sub -section ( 3) of section 9 as a provisional specification, then, notwithstanding anything contained in this Act, the Controller shall not refuse to grant the patent, and the patent shall not be revoked or invalidated, by reason only that any matter described in the provisional specification or in the specification treated as aforesaid as a provisional specification was used in India or published in India or elsewhere at any time after the date of the fi ling of that specification. 1. Subs. by Act 15 of 2005, s. 26, for not later than six months (w.e.f. 1 -1-2005). 25 (2) Where a complete specification is filed in pursuance of a convention application, then, notwithstanding anything contained in this Act, the Controller shall not refuse to grant the patent, and the patent shall not be revoked or invalidated, by reason only that any matter disclosed in any application for protection in a convention country upon which the convention application is founded was used in India or published in India or elsewhere at any time after the date of that app lication for protection. 34. No anticipation if circumstances are only as described in sections 29, 30, 31 and 32. Notwithstanding anything contained in this Act, the Controller shall not refuse 1*** to grant a patent, and a patent s hall not be revoked or invalidated by reason only of any circumstances which, by virtue of section 29 or section 30 or section 31 or section 32, do not constitute an anticipation of the invention claimed in the specification. CHAPTER VII PROVISIONS FOR SEC RECY OF CERTAIN INVENTIONS 35. Secrecy directions relating to inventions relevant for defence purposes. (1) Where, in respect of an application made before or after the commencement of this Act for a patent, it appears to the Controller that the invention is one of a class notified to him by the Central Government as relevant for defence purposes, or, where ot herwise the invention appears to him to be so relevant, he may give directions for prohibiting or restricting the publication of information with respect to the invention or the communication of such information 2***. (2) Where the Controller gives any suc h directions as are referred to in sub -section ( 1), he shall give notice of the application and of the directions to the Central Government, and the Central Government shall, upon receipt of such notice, consider whether the publication of the invention wo uld be prejudicial to the defence of India, and if upon such consideration, it appears to it that the publication of the invention would not so prejudice, give notice to the Controller to that effect, who shall thereupon revoke the directions and notify th e applicant accordingly. (3) Without prejudice to the provisions contained in sub -section ( 1), where the Central Government is of opinion that an invention in respect of which the Controller has not given any directions under sub-section (1), is relevant for defence purposes, it may at any time before 3[grant of patent ] notify the Controller to that effect, and thereupon the provisions of that sub -section shall apply as if the invention were one of

Controller to that effect, and thereupon the provisions of that sub -section shall apply as if the invention were one of the class notified by the Central Gove rnment, and accordingly the Controller shall give notice to the Central Government of the directions issued by him. 36. Secrecy directions to be periodically reviewed. 4[(1) The question whether an invention in respect of which directions have been given under section 35 continues to be relevant for defence purposes shall be reconsidered by the C entral Government at intervals of 5[six months ] or on a request made by the appl icant which is found to be reasonable by the Controller and if, on such reconsideration it appears to the Central Government that the publication of the invention would no longer be prejudicial to the defence of India or in case of an application filed by a foreign applicant it is found that the invention is published outside India it shall forthwith give notice to the Controller to revoke the direction and the Controllers shall thereupon revoke the directions previously given by him.] (2) The result of eve ry re -consideration under sub -section ( 1), shall be communicated to the applicant within such time and in such manner as may be prescribed. 37. Consequences of secrecy directions. (1) So long as any directions under section 35 are in force in respect of an application (a) the Controller shall not pass an order refusing 6[to grant] the same; and 1. The words to accept complete specification for a patent or omitted by Act 15 of 2005, s. 27 (w.e.f. 1 -1-2005). 2. The words to any person or class of persons specified in the directions omitted by Act 38 of 2002, s. 19 (w.e.f. 20 -5-2003). 3. Subs. by Act 15 of 2005, s. 28, for acceptance of complete specification (w.e.f. 1 -1-2005). 4. Subs. by Act 38 of 2002, s. 20, for sub -section ( 1) (w.e.f. 20 -5-2003). 5 Subs. by Act 15 of 2005, s. 29, for twelve months (w.e.f. 1 -1-2005). 6. Subs. by s. 30, ibid., for to accept (w.e.f. 1 -1-2005). 26 (b) notwithstanding anything contained in this Act, no appeal shall lie from any order of the Controller passed in respect thereof: 1[Provided that the application may, subject to the directions , proceed up to the stage of grant of the patent, but the application and the specification found to be in order for grant of the patent shall not be published, and no patent shall be granted in pursuance of th at application .] (2) Where a complete specification filed in pursuance of an application for a patent for an invention in respect of which directions have been given under section 35 2[is found to be in order for grant of the patent] during the continuance in force of the directions, then (a) if, during the continuance in force of the directions, any use of the invention is made by or on behalf of, or to the order of the Government, the provisions of sections 100, 101 and 103 shall apply in relation to that use as if the patent had been granted for the invention ; and (b) if it appears to the Central Government that the applicant for the patent has suffered hardship by reason of the continuance in force of the directions, the Central Government may make to him such payment (if any) by way of solatium as appears to the Central Government to be reasonable having regard to the novelty and utility of the invention and the purpose for which it is designed, and to any other relevant circumstances. (3) Where a patent is granted in pursuance of an application in respect of which directions have been given under section 35, no renewal fee shall be payable in respect of any period during which those directions were in force. 38. Revocation of secrecy directions and extension of time. When any direction given under section 35 is revoked by the Controller, then, notwithstanding any provision of this Act specifying the time within which any step should be taken or any act done in connection with an application for the patent, the Controll er may, subject to such conditions, if any, as he thinks fit to impose, extend the time for doing anything required or authorised to be done by or under this Act in connection with the application, whether or not that time has previously expired. 3[39. Residents not to apply for patents outside India without prior permission. (1) No person resident in India shall, except under the authority of a written permit sought in the manner prescribed and granted by or on behalf of the Controller, make or cause to be made any application outside India for the grant of a patent for an inv ention unless (a) an application for a patent for the same invention has been made in India, not less than six weeks before the application outside India; and (b) either no directi on has been given under sub -section ( 1) of section 35 in relation to the application in India, or all such directions have been revoked. (2) The Controller shall dispose of every such application within such period as may be prescribed: Provided that if th e invention is relevant for defence purpose or atomic energy, the Controller shall not grant permit without the prior consent of the Central Government. (3) This section shall not apply in relation to an invention for which an application for protection ha s first been filed in a country outside India by a person resident outside India.] 1. Subs. by Act 15 of 2005, s. 30, for the proviso (w.e.f. 1 -1-2005). 2. Subs. by s. 30, ibid., for is accepted (w.e.f. 1 -1-2005). 3. Subs by s. 31, ibid., for section 39 (w.e.f. 1 -1-2005). 27 40. Liability for contravention of section 35 or section 39. Without prejudice to the provisions contained in Chapter XX, if in respect of an application for a patent any person contravenes any direction as to secrecy given by the Controller under section 35 1[or makes or causes to be made an application for grant o f a patent outside India in contravention of section 39] , or the application for patent under this Act shall be deemed to have been abandoned and the patent granted, if any, shall be liable to be revoked under section 64. 41. Finality of orders of Control ler and Central Government. All orders of the Controller giving directions as to secrecy as well as all orders of the Central Government under this Chapter shall be final and shall not be called in question in any court on any ground whatsoever. 42. Savin gs respecting disclosure to Government. Nothing in this Act shall be held to prevent the disclosure by the Controller of information concerning an application for a patent or a specification filed in pursuance thereof to the Central Government for the purp ose of the application or specification being examined for considering whether an order under this Chapter should be made or whether an order so made should be revoked. CHAPTER VIII 2[GRANT OF PATENTS AND RIGHTS CONFERRED THEREBY] 3[43. Grant of patent s.(1) Where an application for a patent has been found to be in order fo r grant of the patent and either (a) the application has not been refused by the Controller by virtue of any power vested in him by this Act; or (b) the application has not been found to be in contravention of any of the provisions of this Act, the patent shall be granted as expeditiously as possible to the applicant or, in the case of a joint application, to the applicants jointly, with the seal of the patent office and the date on which the patent is granted shall be entered in the register. (2) On the grant of patent, the Controller shall publish the fact that the patent has been granted and thereupon the application, specification and other documents related thereto shall be open for p ublic inspection. ] 44. Amendment of patent granted to deceased applicant. Where, at any time after a patent has been 4[granted] in pursuance of an application under this Act, the Controller is satisfied that the person to whom the patent was granted had di ed, or, in the case of a body corporate, had ceased to exist, before the patent was 4[granted] , the Controller may amend the patent by substituting for the name of that person the name of the person to whom the patent ought to have been granted, and the pa tent shall have effect, and shall be deemed always to have had effect, accordingly. 45. Date of patent. 5[(1) Subject to the other provisions contained in this Act, every patent shall be dated as of the date on which the application for patent was filed .] (2) The date of every patent shall be entered in the register. (3) Notwithstanding anything contained in this section, no suit or other proceeding shall be commenced or prosecuted in respect of an infringement committed before 6[the date of publication of the application] . 1. Ins. by Act 38 of 2002, s. 22 (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 32, for Chapter Heading (w.e.f. 1 -1-2005). 3. Subs. by s. 33, ibid., for section 43 (w.e.f. 1 -1-2005). 4. Subs. by s. 34, ibid., for sealed (w.e.f. 1 -1-2005). 5. Subs. by Act 38 of 2002, s. 24, for sub -section ( 1) (we.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 35, for certain words (we.f. 1 -1-2005). 28 46. Form, extent and effect of patent. (1) Every patent shall be in the prescribed form and shall have effect throughout India. (2) A patent shall be granted for one invention only: Provided that it shall not be competent for any person i n a suit or other proceeding to take any objection to a patent on the ground that it has been granted for more than one invention. 47. Grant of patents to be subject to certain conditions. The grant of a patent under this Act shall be subject to the condit ion that (1) any machine, apparatus or other article in respect of which the patent is granted or any article made by using a process in respect of which the patent is granted, may be imported or made by or on behalf of the Government for the purpose mere ly of its own use; (2) any process in respect of which the patent is granted may be used by or on behalf of the Government for the purpose merely of its own use; (3) any machine, apparatus or other article in respect of which the patent is granted or any article made by the use of the process in respect of which the patent is granted, may be made or used, and any process in respect of which the patent is granted may be used, by any person, for the purpose merely of experiment or research including the impa rting of instructions to pupils; and (4) in the case of a patent in respect of any medicine or drug, the medicine or drug may be imported by the Government for the purpose merely of its own use or for distribution in any dispensary, hospital or other medic al institution maintained by or on behalf of the Government or any other dispensary, hospital or other medical institution which the Central Government may, having regard to the public service that such dispensary, hospital or medical institution renders, specify in this behalf by notification in the Official Gazette. 1[48. Rights of patentees. Subject to the other provisions contained in this Act and the conditions specified in section 47, a patent granted under this Act shall confer upon the patentee (a) where the subject matter of the patent is a product, the exclusive right to prevent third parties, who do not have his consent, from the act of making, using, offering for sale, selling or importing for those purposes that product in India; (b) where the subject matter of the patent is a process, the exclusive right to prevent third parties, who do not have his consent, from the act of using that process, and from the act of using, offering for sale, selling or importing for those purposes the product obta ined di rectly by that process in India. 2* * * * *] 49. Patent rights not infringed when used on foreign vessels, etc., temporarily or accidentally in India. (1) Where a vessel or aircraft registered in a foreign country or a land vehicle owned by a person ordinarily resident in such country comes into India (including the territorial waters thereof) temporarily or accidentally only, the rights conferred by a patent for an invention shall not be deemed to be infringed by the use of the invention (a) in the body of the vessel or in the machinery, tackle, apparatus or other accessories thereof, so far as the invention is used on board the vessel and for its actual needs only; or (b) in the construction or working of the aircraft or land vehicle or of the accessories thereof, as the case may be. (2) This section shall not extend to vessels, aircraft or land vehicles owned by person s ordinarily resident in a foreign country the laws of which do not confer corresponding rights with respect to the use of inventions in vessels, aircraft or land vehicles owned by persons ordinarily resident in India while in the ports or within the territorial waters of that foreign country or otherwise within the jurisdiction of its courts. 1. Subs. by Act 38 of 2002, s. 25, for section 48 (w.e.f. 20 -5-2003). 2. The p roviso omitted by Act 15 of 2005, s. 36 ( w.e.f. 1 -1-2005). 29 50. Rights of co -owners of patents .(1) Where a patent is granted to two or more persons, each of those persons shall, unless an agreement to the contrary is in force, be entitled to an equal undivided share in the patent. (2) Subject to the provisions contained in this section and in sect ion 51, where two or more persons are registered as grantee or proprietor of a patent, then, unless an agreement to the contrary is in force, each of those persons shall be entitled, by himself or his agents, to 1[the rights conferred by section 48] for hi s own benefit without accounting to the other person or persons. (3) Subject to the provisions contained in this section and in section 51 and to any agreement for the time being in force, where two or more persons are registered as grantee or propriet

and in section 51 and to any agreement for the time being in force, where two or more persons are registered as grantee or proprietor o f a patent, then, a licence under the patent shall not be granted and a share in the patent shall not be assigned by one of such persons except with the consent of the other person or persons. (4) Where a patented article is sold by one of two or more persons registered as grantee or proprietor of a patent, the purchaser and any person claiming through him shall be entitled to deal with the article in the same manner as if the article had been sold by a sole patentee. (5) Subject to the provisions conta ined in this section, the rules of law applicable to the ownership and devolution of movable property generally shall apply in relation to patents; and nothing contained in sub-section ( 1) or sub -section ( 2) shall affect the mutual rights or obligations of trustees or of the legal representatives of a deceased person or their rights or obligations as such. (6) Nothing in this section shall affect the rights of the assignees of a partial interest in a patent created before the commencement of this Act. 51. P ower of Controller to give directions to co -owners. (1) Where two or more persons are registered as grantee or proprietor of a patent, the Controller may, upon application made to him in the prescribed manner by any of those persons, give such directions i n accordance with the application as to the sale or lease of the patent or any interest therein, the grant of licences under the patent, or the exercise of any right under section 50 in relation thereto, as he thinks fit. (2) If any person registered as gr antee or proprietor of a patent fails to execute any instrument or to do any other thing required for the carrying out of any direction given under this section within fourteen days after being requested in writing so to do by any of the other persons so r egistered, the Controller may, upon application made to him in the prescribed manner by any such other person, give directions empowering any person to execute that instrument or to do that thing in the name and on behalf of the person in default. (3) Befo re giving any directions in pursuance of an application under this section, the Controller shall give an opportunity to be heard (a) in the case of an application under sub -section ( 1), to the other person or persons registered as grant ee or proprietor of the patent; (b) in the case of an application under sub -section ( 2), to the person in default. (4) No direction shall be given under this section so as to affect the mutual rights or obligation of trustees or of the legal representatives of a deceased per son or of their rights or obligations as such, or which is inconsistent with the terms of any agreement between persons registered as grantee or proprietor of the patent. 1. Subs. by Act 38 of 2002, s. 26, for make, use, exercise and sell the patented invention (w.e.f. 20 -5-2003). 30 52. Grant of p atent to true and first inventor where it has been obtained by another in fraud of him. (1) 1[Where the patent has been revoked under section 64] on the ground that the patent was obtained wrongfully and in contravention of the rights of the petitioner or any person under or through whom he claims, or, where in a petition for revocation, the 2[ 3*** court], instead of revoking the patent, directs the complete specification to be amended by the exclusion of a claim or claims in consequence of a finding that the invention covered by such claim or claims had been obtained from the petitioner, the 2[ 3*** court] may, by order passed in the same proceeding, permit the grant to the petitioner of the whole or such part of the invention which the 2[ 3*** court] finds has been wrongfully obtained by the patentee, in lieu of the patent so revoked or is excluded by amendment. (2) Where any such order is passed, the Controller shall, on request by the petitioner made in the prescribed manner grant to him : (i) in cases where the 2[ 3*** court] permits the whole of the patent to be granted, a new patent bearing the same date and number as the patent revoked; (ii) in cases where the 2[ 3*** court ] permits a part only of the patent to be granted, a new patent for such part bearing the same date as the patent revoked and numbered in su ch manner as may be prescribed: Provided that the Controller may, as a condition of such grant, require the petitioner to file a new and complete specification to the satisfaction of the Controller describing and claiming that part of the invention for which the patent is to be granted. (3) No suit shall be brought for any infringement of a patent granted under this section committed before the actual date on which such patent was granted. 53. Term of patent. 4[(1) Subject to the provisions of this Act, the term of every patent granted, after the commencement of the Patents (Amendment) Act, 2002, and the term of every patent which has not expired and has not ceased to have effect, on the date of such commencement, under this Act, shall be twenty years from the date of fil ing of the applica tion for the patent.] 5[Explanation .For the purposes of this sub -section, the term of patent in case of International applications filed under the Patent Cooperation Treaty designating India, shall be twenty years from the international filing date accord ed under the Patent Cooperation Treaty .] (2) A patent shall cease to have effect notwithstanding anything therein or in this Act on the expiration of the period prescribed for the payment of any renewal fee, if that fee is not paid within the prescribed pe riod 6[or within such extended period as may be prescribed] . 7* * * * * 8[(4) Notwithstanding anything contained in any other law for the time being in force, on cessation of the patent right due to non -payment of renewal fee or on the expiry of the term of patent, the subject matter covered by the said patent shall not be entitled to any protection.] CHAPTER IX PATENTS OF ADDITION 54. Patents of addition. (1) Subject to the provisions contained in this section, where an application is made for a patent in re spect of any improvement in or modification of an invention described or disclosed in the complete specification filed therefor (in this Act referred to as the main invention) and the applicant also applies or has applied for a patent for tha t invention or is the patentee in respect thereof, the Controller may, if the applicant so requests, grant the patent for the improvement or modification as a patent of addition. 1. Subs. by Act 15 of 2005, s. 37, for Where a patent has been revoked (w.e.f. 1 -1-2005). 2. Subs. by s. 37, ibid., for court (w.e.f. 2 -4-2007). 3. The word Appellate Board omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 4. Subs. by Act 38 of 2002, s. 27, for sub -section ( 1) (w.e.f. 20 -5-2003). 5. The Explanation ins. by Act 15 of 2005, s. 38 (w.e.f. 1 -1-2005). 6. Subs. by s. 38, ibid., for or within that period as extended under this section (w.e.f. 1 -1-2005). 7. Sub -section ( 3) omitted by s. 38, ibid. (w.e.f. 1 -1-2005). 8. Ins. by Act 38 of 2002, s. 27 (w.e.f. 20 -5-2003). 31 (2) Subject to the provisions contained in this section, where an invention, being an improvement in or modification of another invention, is the subject of an independent patent and the patentee in respect of that patent is also the patentee in respect of the patent for the main invention, the Controller may, if the patentee so re quests, by order, revoke the patent for the improvement or modification and grant to the patentee a patent of addition in respect thereof, bearing the same date as the date of the patent so revoked. (3) A patent shall not be granted as a patent of addition unless the date of filing of the 1[application] was the same as or later than the date of filing of the 1[application] in respect of the main invention. 2[(4) A patent of addition shall not be granted before grant of the patent for the main invention]. 55. Term of patents of addition. (1) A patent of addition shall be granted for a term equal to that of the patent for the main invention, or so much thereof as has not expired, and shall remain in force during that term or until the previous cesser of the patent for the main invention and no longer: Provided that if the patent for the main invention is revoked under this Act, the court, or, as the case may be, the Controller, on request made to him by the patentee in the prescribed manner, may order that the patent of addition shall become an independent patent for the remainder of the term for the patent for the main invention and thereupon the patent shall continue in force as an independent patent accor dingly. (2) No renewal fees shall be payable in respect of a patent of addition, but, if any such patent becomes an independent patent under sub -section ( 1), the same fees shall thereafter be payable, upon the same dates, as if the patent had been original ly granted as an independent patent. 56. Validity of patents of addition. (1) The grant of a patent of addition shall not be refused, and a patent granted as a patent of addition shall not be revoked or invalidated, on the ground only that the invention claimed in the complete specification does not involve any inventive step having regard to any publication or use of (a) the main invention described in the complete specification relating thereto; or (b) any improvement in or modification of the main inv ention described in the complete specification of a patent of addition to the patent for the main invention or of an application for such a patent of addition, and the validity of a patent of addition shall not be questioned on the ground that the inventio n ought to have been the subject of an independent patent. (2) For the removal of doubts it is hereby declared that in determining the novelty of the invention claimed in the complete specification filed in pursuance of an application for a patent of addit ion regard shall be had also to the complete specification in which the main invention is described. CHAPTER X AMENDMENT OF APPLICATIONS AND SPECIFICATIONS 57. Amendment of application and specification before Controller. (1) Subject to the provisions of section 59, the Controller may, upon application made under this section in the prescribed manner by an applicant for a patent or by a patentee, allow the application for the patent or the complete specification 3[or any document relating thereto] to be ame nded subject to such conditions, if any, as the Controller thinks fit : Provided that the Controller shall not pass any order allowing or refusing an application to amend an application for a patent or a specification 3[or any document relating thereto] under this section while any suit before a court for the infringement of the patent or any proceeding before the High Court for the revocation of the patent is pending, whether the suit or proceeding commenced before or after the filing of the application to amend. (2) Every application for leave to amend an application for a patent 4[or a complete specification or any document relating thereto] under this section shall state the nature of the proposed amendment, and shall give full particulars of the reasons for which the application is made. 1. Subs. by Act 15 of 2005, s. 39 , for complete specification (w.e.f. 1 -1-2005). 2. Subs. by s. 39, ibid., for sub -section ( 4) (w.e.f. 1 -1-2005). 3. Ins. by Act 38 of 2002, s. 28 (w.e.f. 20 -5-2003). 4. Subs. by s. 28, ibid., for or a specification (w.e.f. 20 -5-2003). 32 1[(3) Any application for leave to amend an application for a patent or a complete specification or a document related thereto under this section made after the grant of patent and the nature of the proposed amendment may be published.] (4) Where an application is 2[published] under sub -section ( 3), any person interested may, within the prescribed period after the 3[publication] thereof, give notice to the Controller of opposition thereto; and where such a notice is given within the period aforesaid, the Controller shall notify the person by whom the application under this section is made and shall give to that person and to the opponent an opportunity to be heard before he decides the case. (5) An amendment under this section of a complete specification may be, or include, an amendment of the priority date of a claim. 4[(6) The provisions of this section shall be without prejudice to the right of an applicant for a patent to amend his specification or any other document related thereto to comply with the directions of the Controller issued before the grant of a patent .] 5[58. Amendment of specification before Appellate Board or High Court. (1) In any proceeding before the 6*** the High Court for the revocation of a patent, the 6*** the High Court, 7***, may, subject to the provisions contained in section 59, allow the patentee to amend his complete specification in such manner and subject to such terms as to costs, advertisement or otherwise, as the 6*** the High Court may think fit, and if in any proceedings for revocation the 6*** the High Court decides that the patent is invalid, it may allow the specification to be amended under this section instead of revoking the patent. (2) Where an application for an order under this section is made to the 6*** the High Court, the applicant shall give notice of the application to the Controller, and the Controller shall be entitled to appear and be heard, and shall appear if so directed by the 6*** the High Court. (3) Copies of all orders of the 6*** the High Court allowing the patentee to amend the specification shall be transmitted by the 6*** the High Court to the Controller who shall, on receipt thereof, cause an entry thereof and

all be transmitted by the 6*** the High Court to the Controller who shall, on receipt thereof, cause an entry thereof and refer ence thereto to be made in the register.] 59. Supplementary provisions as to amendment of application or specification. 8[(1) No amendment of an application for a patent or a complete speci fication or any document relating thereto shall be made except by way of disclaimer, correction or explanation, and no amendment thereof shall be allowed, except for the purpose of incorporation of actual fact, and no amendment of a complete specification shall be allowed, the effect of w hich would be that the specification as amended would claim or describe matter not in substance disclosed or shown in the specification before the amendment, or that any claim of the specification as amended would not fall wholly within the scope of a clai m of the specification before the amendment.] 9[(2) Where after the date of grant of patent any amendment of the specification or any other documents related thereto is allowed by the Controller or by 10*** the High Court, as the case may be, (a) the amend ment shall for all purposes be deemed to form part of the specification along with other documents related thereto; (b) the fact that the specification or any other documents related thereto has been amended shall be published as expeditiously as possible; and 1. Subs. by Act 15 of 2005, s. 40, for sub -section ( 3) (w.e.f. 1 -1-2005). 2. Subs. by s. 40, ibid., for advertised (w.e.f. 1 -1-2005). 3. Subs. by s. 40, ibid., for advertisement (w.e.f. 1 -1-2005). 4. Subs. by s. 40, ibid., for sub -section ( 6) (w.e.f 1 -1-2005). 5. Subs. by s. 41, ibid., for section 58 (w.e.f. 2 -4-2007). 6. The word the Appellate Board omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 7. The words as the case may be omitted by s. 13, ibid. (w.e.f. 4 -4-2021). 8. Subs. by Act 38 of 2002, s. 29, for sub -section (1) (w.e.f. 20 -5-2003). 9. Subs. by Act 15 of 2005, s. 42, for sub -section ( 2) (w.e.f. 2 -4-2007). 10. The words the Appellate Board or omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 33 (c) the right of the applicant or patentee to make amendment shall not be called in question except on the ground of fraud]. (3) In construing the specification as amended, reference may be made to the specification as originally accepted. CHAPTER XI RESTORATION OF LAPSED PATENTS 60. Applications for restoration of lapsed patents. (1) Where a patent has ceased to have effect by reason of failure to pay any renewal fee within the 1[period p rescribed under section 53 or within such period as may be allow ed under sub -section ( 4) of section 142] , the patentee or his legal representative, and where the patent was held by two or more persons jointly, then, with the leave of the Controller, one or more of them without joining the others, may, within 2[eighteen months] from the date on which the patent ceased to have effect, make an application for the restoration of the patent. 3* * * * * (3) An application under this section shall contain a statement, verified in the prescribed manner, fully setting ou t the circumstances which led to the failure to pay the prescribed fee, and the Controller may require from the applicant such further evidence as he may think necessary. 61. Procedure for disposal of applications for restoration of lapsed patents. (1) If, after hearing the applicant in cases where the applicant so desires or the Controller thinks fit, the Controller is prima facie satisfied that the failure to pay the renewal fee was unintentional and that there has been no undue delay in the making o f the application, he shall 4[publish the application ] in the prescribed manner; and within the prescribed period any person interested may give notice to the Controller of opposition thereto on either or both of the fol lowing grounds, that is to say, (a) that the failure to pay the renewal fee was not unintentional; or (b) that there has been undue delay in the making of the application. (2) If notice of opposition is given within the period aforesaid, the Controller shall notify the applicant, and shall give to him and to the opponent an opportunity to be he ard before he decides the case. (3) If no notice of opposition is given within the period aforesaid or if in the case of opposition, the decision of the Controller is in favour of the applicant, the Co ntroller shall, upon payment of any unpaid renewal fee and such additional fee as may be prescribed, restore the patent and any patent of addition specified in the application which has ceased to have effec t on the cesser of that patent. (4) The Controller may, if he thinks fit as a condition of restoring the patent, require that an entry shall be made in the register of any document or matter which, under the provisions of this Act, has to be entered in the register but which has not been s o entered. 62. Rights of patentees of lapsed patents which have been restored. (1) Where a patent is restored, the rights of the patentee shall be subject to such provisions as may be prescribed and to such other provisions as the Controller thinks fit to impose for the protection or compensation of persons who may have begun to avail themselves of, or have taken definite steps by contract or otherwise to avail themselves of, the patented invention between the date when the patent ceased to have effect and the date of the 5[publication] of the application for restoration of the patent under this Chapter. 1. Subs. by Act 15 of 2005, s. 43, for prescribed period or within that period as extended under sub -section (3) of section 53 (w.e.f. 1 -1-2005). 2. Subs. by Act 38 of 2002, s. 30, for one year (w.e.f. 20 -5-2003). 3. Sub -section ( 2) omitted by s. 30, ibid. (w.e.f. 20 -5-2003). 4. Subs. by Act 15 of 2005, s. 44, for advertise the application (w.e.f. 1 -1-2005). 5. Subs. by s. 45, ibid., for advertisement (w.e.f. 1 -1-2005). 34 (2) No suit or other proceeding shall be commenced or prosecuted in respect of an infringement of a patent committed between the date on which the patent ce ased to have effect and the 1[date of publication] of the application for restoration of the patent. CHAPTER XII SURRENDER AND REVOCATION OF PATENTS 63. Surrender of patents. (1) A patentee may, at any time by giving notice in the prescribed manner to the Controller, offer to surrender his patent. (2) Where such an offer is made, the Controller shall 2[publish] the offer in the prescribed manner, and also notify every person other than the patentee whose name appears in the register as having an interest in the patent. (3) Any person interested may, within the prescribed period after 3[such publication] give notice to the Controller of opposition to the surrender, and where any such notice is given the Controller shall notify the patentee. (4) If the Control ler is satisfied after hearing the patentee and any opponent, if desirous of being heard, that the patent may properly be surrendered, he may accept the offer and, by order revoke the patent. 64. Revocation of Power patents. (1) Subject to the provisions contained in this Act, a patent whether granted before or after the commencement of this Act, may , 4[be revoked on a petition of any person interested or of the Central Government 5*** or on a counter -claim in a suit for infringement of the patent by the Hi gh Court] on any of the following grounds, that is to say (a) that the invention, so far as claimed in any claim of the complete specification, was claimed in a valid claim of earlier priority date contained in the complete specification of a nother patent granted in India; (b) that the patent was granted on the application of a person not entitled under the provisions of this Act to apply therefor : 6* * * * * (c) that the patent was obtained wrongfully in contravention of the righ ts of the petitioner or any person under or through whom he claims; (d) that the subject of any claim of the complete specification is not an invention within the meaning of this Act; (e) that the invention so far as claimed in any claim of the complete sp ecification is not new, having regard to what was publicly known or publicly used in India before the priority date of the claim or to what was published in India or elsewhere in any of the documents referred to in section 13: 4* * * * * (f) that th e invention so far as claimed in any claim of the complete specification is obvious or does not involve any inventive step, having regard to what was publicly known or publicly used in India or what was published in India or elsewhere before the priority d ate of the claim: 4* * * * * (g) that the invention, so far as claimed in any claim of the complet e specification, is not useful; 1. Subs. by s. 45, ibid., for date of the advertisement (w.e.f. 1 -1-2005). 2. Subs. by Act 15 of 2005, s. 46, for advertise (w.e.f. 1 -1-2005). 3. Subs. by s. 46, ibid., for such advertisement (w.e.f. 1 -1-2005). 4. Subs. by s. 47, ibid., for certain words (w.e.f. 2 -4-2007). 5. The words by the Appellate Board omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 6. The proviso o mitted by Act 38 of 2002, s. 31 (w.e.f. 20 -5-2003). 35 (h) that the complete specification does not sufficiently and fairly describe the invention and the method by which it is to be performed, that is to say, that the description of the method or the instructions for the working of the invention as contained in the complete specification are not by themselves sufficient to enable a person in India possessing average skill in, and average knowledge of, the art to which the invention relates, to work the invention, or that it does not disclose the best method of performing it which was known to the applicant for the patent and for which he was entitled to claim , protection; (i) that the scope of any claim of the complete specification is not sufficiently and clearly defined or that any claim of the complete specification is not fairly based on the matter disclosed in the specification; (j) that the patent was obtained on a fals e suggestion or representation; (k) that the subject of any claim of the complete specification is not patentable under this Act; (l) that the invention so far as claimed in any claim of the complete specification was secretly used in India, otherwise than a s mentioned in sub -section ( 3), before the priority date of the claim; (m) that the applicant for the patent has failed to disclose to the Controller the information required by section 8 or has furnished information which in any material particular was fa lse to his knowledge; (n) that the applicant contravened any direction for secrecy passed under section 35 1[or made or caused to be made an application for the grant of a patent outside India in contravention of section 39] ; (o) that leave to amend the complete specification under section 57 or s ection 58 was obtained by fraud; 1[(p) that the complete specification does not disclose or wrongly mentions the source or geographical origin of biological material used for the invention; (q) that the invention so far as claimed in any claim of the complete specification was anticipated having regard to the knowledge, oral or otherwise, available within any local or indigenous community in India or elsewhere.] (2) For the purposes of clauses ( e) and ( f) of sub -section ( 1), (a) no account shall be taken of 2[personal document or secret trial or secret use ]; and (b) where the patent is for a process or for a product as made by a process described or claimed the importation i nto India of the product made abroad by that process shall constitute knowledge or use in India of the invention on the date of the importation, except where such importation has been for the purpose of reaso nable trial or experiment only. (3) For the purp ose of clause ( l) of sub -section ( 1), no account shall be taken of any use of the invention (a) for the purpose of reasonab le trial or experiment only; or (b) by the Government or by any person authorised by the Government or by a Government undertaking, in consequence of the applicant for the patent or any person from whom he derives title having communicated or disclosed the invention directly or indirectly to the Government or person authorised as aforesaid or to the Government undertaking; or (c) by an y other person, in consequence of the applicant for the patent or any person from whom he derives title having communicated or disclosed the invention, and without the consent or acquiescence of the applicant or of any person from whom he derives title. 1. Ins. by Act 38 of 2002, s. 31 (w.e.f. 20 -5-2003). 2. Subs. by s. 31, ibid., for secret use (w.e.f. 20 -5-2003). 36 (4) Without prejudice to the provisions contained in sub -section ( 1), a patent may be revoked by the High Court on the petition of the Central Government, if the High Court is satisfied that the

1), a patent may be revoked by the High Court on the petition of the Central Government, if the High Court is satisfied that the patentee has without reasonable cause failed to comply with the request of the Central Government to make, use or exercise the patented invention for the purposes of Government within the meaning of section 99 upon reasonable terms. (5) A notice of any petition for revocation of a patent under this section shall be served on all persons appearing from the register to be proprietors of that patent or to have shares or interests therein and it shall not be necessary to serve a notice on any other person. 1[65. Revocation of patent or amendment of complete specification on directions from Government in cases relating to atomic energy. (1) Where at any time after grant of a patent, the Central Government is satisfied that a patent is for an invention relating to atomic energy for which no patent can be granted under sub -section ( 1) of section 20 of the Atom ic Energy Act, 1962 (33 of 1962 ), it may direct the Controller to revoke the patent, and thereupon the Controller, after giving notice, to the patentee and every other person whose name has been entered in the register a s having an interest in the patent, and after giving them an opportunity of being heard, may revoke the patent. (2) In any proceedings under sub -section ( 1), the Controller may allow the patentee to amend the complete specification in such manner as he con siders necessary instead of revoking the patent .] 66. Revocation of patent in public interest. Where the Central Government is of opinion that a patent or the mode in which it is exercised is mischievous to the State or generally prejudicial to the public, it may, after giving the patentee an opportunity to be heard, make a declaration to that effect in the Official Gazette and thereupon the patent shall be deemed to be revoked. CHAPTER XIII REGISTER OF PATENTS 67. Register of patents and particulars to be entered therein. (1) There shall be kept at the patent office a register of pa tents, wherein shall be entered (a) the names and addresses of grantees of patents; (b) notifications of assignments and of transmissions of patents , of licences under paten ts, and of amendments, extensions, an revocations of patents; and (c) particulars of such other matters affecting the validity or proprietorship o f patents as may be prescribed. (2) No notice of any trust, whether express, implied or constructive, shall be entered in the register, and the Controller shall not be affected by any such notice. (3) Subject to the superintendence and direction of the Central Government, the register shall be kept under the control an d management of the Controller. 2[(4) Notwithstanding anything contained in sub -section ( 1), it shall be lawful for the Controller to keep the register of pat ents or any part thereof in computer floppies, diskettes or any other electronic form subject to such safeguards as may be pre scribed. (5) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), a copy of, or extracts from, the register of patents, certified to be a true copy under the hand of the Controller or any officer duly authorised by the Controller in thi s behalf shall, in all legal proceedings, be admissible in evidence. (6) In the event the register is kept wholly or partly in comput er floppies, diskette s or any other electronic form, 1. Subs. by Act 15 of 2005, s. 48, for section 65 (w.e.f. 1 -1-2005). 2. Subs. by Act 38 of 2002, s. 32, for sub -section ( 4) (w.e.f. 20 -5-2003). 37 (a) reference in this Act to an entry in the register shall be deeme d to include reference to a record of particulars kept in computer floppies, diskettes or any other electronic form and comprising the register or part of the register; (b) references in this Act to particulars being registered or entered in the register s hall be deemed to include references to the keeping of record of those particulars comprising the register or part of the register in computer floppies, diskettes or any other electronic form; and (c) references in this Act to the rectification of the register are to be read as including references to the rectifica tion of the record of particulars kept in computer floppies, diskettes or any other electronic form and comprising the regis ter or part of the register.] 1[68. Assignments, etc., not to be v alid unless in writing and duly executed .An assignment of a patent or of a share in a patent, a mortgage, licence or the creation of any other interest in a patent shall not be valid unless the same were in writing and the agreement between the parties co ncerned is reduced to the form of a document embodying all the terms and conditions governing their rights and obligations and duly executed .] 69. Registration of assignments , transmissions, etc. (1) Where any person becomes entitled by assignment, transmission or operation of law to a patent or to a share in a patent or becomes entitled as a mortgagee, licensee or otherwise to any other interest in a patent, he shall apply in writing in the prescribed manner to the Controller for the registration of his title or, as the case may be, of notice of his interest in the register. (2) Without prejudice to the provisions of sub -section ( 1), an application for the registration of the title of any person becoming entitled by assignment to a patent or a share in a patent or becoming entitled by virtue of a mortgage, licence or other instrument to any other interest in a patent may be made in the prescribed manner by the assignor, mortgagor, licensor or other party to that instrument, as the case may be. (3) Whe re an application is made under this section for the registration of the title of any person the Controller shall, upon proo f of title to his satisfaction, (a) where that person is entitled to a patent or a share in a patent , register him in the register as proprietor or co -proprietor of the patent, and enter in the register particulars of the instrument or event by which he derives title ; or (b) where that person is entitled to any other interest in the patent, enter in the register notice of his interes t, with particulars of the i nstrument, if any, creating it: Provided that if there is any dispute between the parties whether the assignment, mortgage, licence, transmission, operation of law or any other such transaction has validly vested in such person a title to the patent or any share or interest therein, the Controller may refuse to take any action under clause ( a) or, as the case may be, under clause ( b), until the rights of the parties have been d etermined by a competent court. (4) There shall be su pplied to the Controller in the prescribed manner for being filed in the patent office copies of all agreements, licences and other documents affecting the title to any patent or any licence thereunder authenticated in the prescribed manner and also such o ther documents as may be prescribed r elevant to the subject -matter: Provided that in the case of a licence granted under a patent, the Controller shall, if so requested by the patentee or licensee, take steps for securing that the terms of the licence are not disclosed to any person exc ept under the order of a court. (5) Except for the purposes of an application under sub -section ( 1) or of an application to rectify the register, a document in respect of which no entry has been made in the register under sub-section ( 3) shall not be admitted by the Controller or by any court as evidence of the title of any person to a patent or to a share or interest therein unless the Controller or the court, for reasons to be recorded in writing, otherwise directs. 1. Subs. by Act 15 of 2005, s. 49, for section 68 (w.e.f. 1 -1-2005). 38 70. P ower of registered grantee or proprietor to deal with patent. Subject to the provisions contai ned in this Act relating to co -ownership of patents and subject also to any rights vested in any other person of which notice is entered in the register, the pers on or persons registered as grantee or proprietor of a patent shall have power to assign, grant licences under, or otherwise deal with, the patent and to give effectual receipts for any consideration for any such assignment, licence or dealing: Provided th at any equities in respect of the patent may be enforced in like manner as in respect of any other movable property. 71. Rectification of register by 1[High Court ].(1) The 1[High Court ] may, on the appl ication of any person aggrieved (a) by the absence or omission from the register of any entry; or (b) by any entry made in the register without sufficient cause; or (c) by any entry wrongl y remaining on the register; or (d) by any error or defec t in any entry in the register, make such order for the making , variation or deletion, of any ent ry therein as it may think fit. (2) In any proceeding under this section the 1[High Court ] may decide any question that may be necessary or expedient to decide in connection with the rectification of the register. (3) Not ice of any application to the 1[High Court ] under this section shall be given in the prescribed manner to the Controller who shall be entitled to appear and be heard on the application, and shall appe ar if so directed by the 2[High Court ]. (4) Any order of the 1[High Court ] under this section rectifying the register shall direct that notice of the rectification shall be served upon the Controller in the prescribed manner who shall upon receipt of such notice rectify the register accordingly. 72. Register to be open for inspection. (1) Subject to the provisions contained in this Act and any rules made thereunder, the register shall at all convenient times be open to inspection by the public; and certified copies, sealed with the seal of the pate nt office, of any entry in the register shall be given to any person requiring them on payment of the prescribed fee. (2) The register shall be prima facie evidence of any matters required or authorised by or under this Act to be entered therein. 3[(3) If the record o f particulars is kept in computer floppies or diskettes or in any other electronic form, sub -sections ( 1) and ( 2) shall be deemed to have been complied with if the public is given access to such computer floppies, diskettes or any other elec tronic form or printouts of such record of particulars for in spection.] CHAPTER XIV PATENT OFFICE AND ITS ESTABLISHMENT 73. Controller and other officers. (1) The Controller General of Patents, Designs and Trade Marks appointed under sub -section ( 1) of 4[section 3 of the Trade Marks Act, 1999 (47 of 1999)] , shall be the Controller of Patents for the purposes of this A ct. (2) For the purposes of this Act, the Central Government may appoint as many examiners and other officers and with such designations as it thinks fit. (3) Subject to the provisions of this Act, the officers appointed under sub -section ( 2) shall discharge under the superintendence and directions of the Controller such functions of the Controller under this Act as he may, from time to time b y general or special order in writin g, authorise them to discharge. 1. Subs. by Act 3 2 of 20 21, s. 13, for Appellate Board (w.e.f. 20-5-2003). 2. Subs. by s. 13, ibid., for Board (w.e.f. 4-4-2021). 3. Ins. by Act 38 of 2002, s. 34 (w.e.f. 20 -5-2003). 4. Subs. by s. 35, ibid., for certain words (w.e.f. 20 -5-2003). 39 (4) Without prejudice to the generality of the provisions of sub -section ( 3), the Controller may, by order in writing and for reasons to be recorded therein withdraw any matter pending bef ore an officer appointed under sub -section ( 2) and deal with such matter himself either de novo or from the stage it was so withdrawn or transfer the same to another officer appointed under sub -section ( 2) who may, subject to special directions in the orde r of transfer, proceed with the matter either de novo or from the stage it was so transferred. 74. Patent office and its branches. (1) For the purposes of this Act, there shall be an office which shall be known as the patent office. 1[(2) The Central Gover nment may, by notification in the Official Gazette, specify the name of the Patent Office.] (3) The head office of the patent office shall be at such place as the Central Government may specify, and for the purpose of facilitating , the registration of pate nts there may be established, at such other places as the Central Government may think fit, branc h offices of the patent office. (4) There shall be a seal of the patent office. 75. Restriction on employees of patent office as to right or interest in patent s.All officers and employees of the patent s office shall be incapable, during the period for which they hold their appointments, to acquire or take, directly or indirectly, except by inheritance or bequest, any right or interest in any patent issued by that office. 76. Officers and employees not to furnish information, etc. An officer or employee in the patent office shall not, except when required or authorised by this Act or under a direction in writing of the 2[Central Government 3***] or the Cont roller or by order of a court, (a) furnish inform ation on a matter which is being, or has been , or dealt with under this Act 4***; (b) prepare or assist in the preparation of a document required or permitted by or under this Act 4*** to be lodged in the patent office; or (c) conduct a search in the recor ds of the patent office. CHAPTER XV POWERS OF CONTROLLER GENERALLY 77. Controller to have certain powers of a civil court. (1) Subject to any rules made in this behalf, the Controller in any proceedings before him under this Act shall have the powers of a civil court while trying a suit under the Code of C ivil Procedure, 1908 (5 of 1908 ), in respect of the following matters, namely: (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document;

enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) awarding costs; (f) reviewing his own decision on application made within the prescribed time and in the prescribed manner; (g) setting aside an order passed ex parte on application made within the prescribed time and in the prescribed manner; (h) any other matter which may be prescribed. (2) Any order for costs awarded by the Controller in exercise of the powers conferred upon him under sub-section ( 1) shall be executable as a decree of a civil court. 1. Subs. by Act 15 of 2005, s. 50, for sub -section ( 2) (w.e.f. 1-1-2005). 2. Subs. by Act 38 of 2002, s. 36, for Central Government (w.e.f. 20 -5-2003). 3. The words or Appellate Board omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 4. The words and figures or under the Indian Patents or Designs Act, 1911 (2 of 1911 ) omitted by s. 36, ibid. (w.e.f. 20 -5-2003). 40 78. Power s of Controller to correct clerical errors, etc. (1) Without prejudice to the provisions contained in sections 57 and 59 as regards amendment of application s for patents or complete specifications 1[or other documents relating thereto] and subject to the provisions of section 44, the Controller may, in accordance with the provisions of this section, correct any clerical error in any patent or in any specifica tion or other document filed in pursuance of such application or in any application for a patent or any clerical error in any matter wh ich is entered in the register. (2) A correction may be made in pursuance of this section either upon a request in writin g made by any person interested and accompanied by the prescribed fee, or without such a request. (3) Where the Controller proposes to make any such correction as aforesaid otherwise than in pursuance of a request made under this section, he shall give not ice of the proposal to the patentee or the applicant for the patent, as the case may be, and to any other person who appears to him to be concerned, and shall give them an opportunity to be hear d before making the correction. (4) Where a request is made un der this section for the correction of any error in a patent or application for a patent or any document filed in pursuance of such an application, and it appears to the Controller that the correction would materially alter the meaning or scope of the docu ment to which the request relates and ought not to be made without notice to persons affected thereby, he shall require notice of the nature of the proposed correction to be 2[published] in the prescribed manner. (5) Within the prescribed time after any 3[such publication] as aforesaid any person interested may give notice to the Controller of opposition to the request, and, where such notice of opposition is given, the Controller shall give notice thereof to the person by whom the request was made, and sha ll give to him and to the opponent an opportunity to be heard before he decides the case. 79. Evidence how to be given and powers of Controller in respect thereof. Subject to any rules made in this behalf, in any proceeding under this Act before the Contro ller, evidence shall be given by affidavit in the absence of directions by the Controller to the contrary, but in any case in which the Controller thinks it right so to do, he may take oral evidence in lieu of, or in addition to, evidence by affidavit, or may allow any party to be cross -examined on the contents of his affidavit. 80. Exercise of discretionary powers by Controller. Without prejudice to any provision contained in this Act requiring the Controller to hear any party to the proceedings thereunder or to give any such party an opportunity to be heard, the Controller shall give to any applicant for a patent, or for amendment of a specification (if within the prescribed time the applicant so requires) an opportunity to be heard before exercising adver sely to the applicant any discretion vested in the Controller by or under this Act : 4[Provided that the party desiring a hearing makes the request for such hearing to the Controller at least ten days in advance of the expiry of the time -limit specified in respect of the proceeding.] 81. Disposal by Controller of applications for extension of time. Where under the provisions of this Act or the rules made thereunder the Controller may extend the time for doing any act, nothing in this Act shall be deemed to r equire him to give notice to or hear the party interested in opposing the extension, nor shall any appeal lie from any order of the Controller granting such extension. 5[CHAPTER XVI WORKING OF PATENTS, COMPULSORY LICENCES AND REVOCATION 82. Definition of patented articles and patentee. In this Chapter, unless the context otherwise requires, (a) patented article includes any article made by a patented process; and (b) patentee includes an exclusive licensee. 1. Ins. by s. 37, ibid. (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 51, for advertised (w.e.f. 1 -1-2005). 3. Subs. by s. 51, ibid., for such advertisement (w.e.f. 1 -1-2005). 4. Ins. by Act 38 of 2002, s. 38 (w.e.f. 20 -5-2003). 5. Subs. by s. 39, ibid., for Chapter XVI (sections 82 to 98) (w.e.f. 20 -5-2003). 41 83. General principles applicable to work ing of patented inventions .Without prejudice to the other provisions contained in this Act, in exercising the powers conferred by this Chapter, regard shall be had to the following general considerations, namely : (a) that patents are granted to encourage inventions and to secure that the inventions are worked in India on a commercial scale and to the fullest extent that is reasonably practicable without undue delay; (b) that they are not granted merely to enable patentees to enjoy a monopoly for the impor tation of the patented article; (c) that the protection and enforcement of patent rights contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technolo gical knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations; (d) that patents granted do not impede protection of public health and nutrition and should act as instrument to promote public interest s pecially in sectors of vital importance for socio -economic and technological development of India; (e) that patents granted do not in any way prohibit Central Government in taking measures to protect public health; (f) that the patent right is not abused b y the patentee or person deriving title or interest on patent from the patentee, and the patentee or a person deriving title or interest on patent from the patentee does not resort to practices which unreasonably restrain trade or adversely affect the inte rnational transfer of technology; and (g) that patents are granted to make the benefit of the patented invention available at reasonably affordable prices to the public. 84. Compulsory licences .(1) At any time after the expiration of three years from the date of the 1[grant] of patent, any person interested may make an application to the Controller for grant of compulsory licence on patent on any of the following grounds, namely: (a) that the reasonable requirements of the public with respect to the paten ted invention have not been satisfied, or (b) that the patented invention is not available to the public at a reasonably affordable price, or (c) that the patented invention is not worked in the territory of India. (2) An application under this section may be made by any person notwithstanding that he is already the holder of a licence under the patent and no person shall be estopped from alleging that the reasonable requirements of the public with respect to the patented invention are not satisfied or that the patented invention is not worked in the territory of India or that the patented invention is not available to the public at a reasonably affordable price by reason of any admission made by him, whether in such a licence or otherwise or by reason of hi s having accepted such a licence. (3) Every application under sub -section ( 1) shall contain a statement setting out the nature of the applicant s interest together with such particulars as may be prescribed and the facts upon which the application is based. (4) The Controller, if satisfied that the reasonable requirements of the public with respect to the patented invention have not been satisfied or that the patented invention is not worke d in the territory of India or that the patented invention is not available to the public at a reasonably affordable price, may grant a licence upon such terms as he may deem fit. (5) Where the Controller directs the patentee to grant a licence he may , as incidental thereto , exercise the powers set out in section 88. 1. Subs. by Act 15 of 2005, s. 52, for sealing (w.e.f. 1 -1-2005). 42 (6) In considering the application filed under this section, the Controller shall take into account, (i) the nature of the invention, the time which has elapsed since the sealing of the pa tent and the measures already taken by the patentee or any licensee to make full use of the invention; (ii) the ability of the applicant to work the invention to the public advantage; (iii) the capacity of the applicant to undertake the risk in providing c apital and working the invention, if the application were granted; (iv) as to whether the applicant has made efforts to obtain a licence from the patentee on reasonable terms and conditions and such efforts have not been successful within a reasonable peri od as the Controller may deem fit: Provided that this clause shall not be applicable in case of national emergency or other circumstances of extreme urgency or in case of public non -commercial use or on establishment of a ground of anti -competitive pra ctices adopted by the patentee, but shall not be required to take into account matters subsequent to the making of the application. 1[Explanation .For the purposes of clause ( iv), reasonable period shall be construed as a period not ordinarily exceeding a pe riod of six months .] (7) For the purposes of this Chapter, the reasonable requirements of the public shall be de emed not to have been satisfied (a) if, by reason of the refusal of the patentee to grant a licence o r licences on reasonable terms, (i) an existing trade or industry or the development thereof or the establishment of any new trade or industry in India or the trade or industry of any person or class of persons trading or manufacturing in India is prejudiced; or (ii) the demand for the patented article has not been met to an adequate extent or on reasonable terms; or (iii) a market for export of the patented article manufactured in India is not being supplied or developed; or (iv) the establishment or development of commercial activities in India is prejudiced; or (b) if, by reason of conditions imposed by the patentee upon the grant of licences under the patent or upon the purchase, hire or use of the patented article or process, the manufacture, use or sale of materials not protected by the patent, or the establishment or development of any trade or industry in India, is prejudiced ; or (c) if the patentee imposes a condition upon the grant of licences under the patent to provide exclusive grant back, prevention to challenges to the validity of patent or coercive package licensing, or (d) if the patented invention is not being worked in the territory of India on a commercial scale to an adequate extent or is not being so worked to the fullest extent that is reasonably practicable, or (e) if th e working of the patented invention in the territory of India on a commercial scale is being prevented or hindered by the importation from ab road of the patented article by (i) the patentee or persons claiming under him; or (ii) persons directly or indire ctly purchasing from him; or (iii) other persons against whom the patentee is not taking or has not taken proceedings for infringement. 1. The Explanation ins. by Act 15 of 2005, s. 52 (w .e.f. 1 -1-2005). 43 85. Revocation of patents by the Controller for non -working .(1) Where, in respect of a patent, a compulsory licence has been granted, the Central Government or any person interested may, after the expiration of two years from the date of the order granting the first compulsory licence, apply to the Controller for an order revoking the patent on the ground that the patented invention has not been worked in the territory of India or that reasonable requirements of the public with respect to the patented invention has not been satisfied or that the patented invention is not available to the public at a reasonably affordable pr ice. (2) Every application under sub -section ( 1) shall contain such particulars as may be prescribed, the facts upon which the application is based, and, in the case of an application other than by the Central Government, shall also set out the nature of the applicants interest. (3) The Controller, if satisfied that the reasonable requ irements of the public with respect to the patented invention ha ve not been satisfied or that patented invention ha ve not been worked in the territory of India or that the patented invention is not available to the public at a reasonably affordable price, may make an order revoking the patent. (4) Every application under sub -section ( 1) shall ordinarily be decided within one year of its being presented to the Controller. 86. Power of Controller to adjourn applications for compulsory licences, etc., in certa in cases .(1) Where an application under section 84 or section 85, as the case may be, is made on the grounds that the patented invention has not been worked in the territory of India or on the ground mentioned in clause ( d) of sub -section ( 7) of section 84 and the Controller is satisfied that the time which has elapsed since the sealing of the patent has for any reason been insufficient to enable the invention to be worked on a commercial scale to an adequate extent or to enable the invention to be so wor ked to the fullest extent that

be worked on a commercial scale to an adequate extent or to enable the invention to be so wor ked to the fullest extent that is reasonably practicable, he may, by order, adjourn the further hearing of the application for such period not exceeding twelve months in the aggregate as appears to him to be sufficient for the invention to be so worked: Provided that in any case where the patentee establishes that the reason why a patented invention could not be worked as aforesaid before the date of the application was due to any State or Central Act or any rule or regulation made thereunder or any order o f the Government imposed otherwise than by way of a condition for the working of the invention in the territory of India or for the disposal of the patented articles or of the articles made by the process or by the use of the patented plant, machinery, or apparatus, then, the period of adjournment ordered under this sub -section shall be reckoned from the date on which the period during which the working of the invention was prevented by such Act, rule or regulation or order of Government as computed from th e date of the application, expires. (2) No adjournment under sub -section ( 1) shall be ordered unless the Controller is satisfied that the patentee has taken with promptitude adequate or reasonable steps to start the working of the invention in the territor y of India on a commercial scale and to an adequate extent. 87. Procedure for dealing with applications under sections 84 and 85 .(1) Where the Controller is satisfied, upon consideration of an application under section 84, or section 85, that a prima facie case has been made out for the making of an order, he shall direct the applicant to serve copies of the application upon the patentee and any other person appearing from the register to be interested in the patent in respect of wh ich the application is made, and 1[shall publish the appl ication in the official journal] . (2) The patentee or any other person desirin g to oppose the application may within such time as may be prescribed or within such further time as the Controller may on application (made either before or after the expiration of the prescribed time) allow, give to the Controller notice of opposition. (3) Any such notice of oppositio n shall contain a statement setting out the grounds on which the application is opposed. 1. Subs. by Act 15 of 2005, s. 53, for shall advertise the application in the Official Gazette (w.e.f. 1 -1-2005). 44 (4) Where any such notice of opposition is duly given, the Controller shall notify the applicant, and shall give to the applicant and the opponent an opportunity to be heard before deciding the case. 88. Powers of Controller in granting compulsory licences .(1) Where the Controller is satisfied on an application made under section 84 that the manufacture, use or sale of materials not protected by the patent is prejudice d by reason of conditions imposed by the patentee upon the grant of licences under the patent, or upon the purchase, hire or use of the patented article or process, he may, subject to the provisions of that section, order the grant of licences under the pa tent to such customers of the applicant as he thinks fit as well as to the applicant. (2) Where an application under section 84 is made by a person being the holder of a licence under the patent, the Controller may, if he makes an order for the grant of a licence to the applicant, order the existing licence to be cancelled, or may, if he thinks fit, instead of making an order for the grant of a licence to the applicant, order the existing licence to be amended. (3) Where two or more patents are held by the same patentee and an applicant for a compulsory licence establishes that the reasonable requirements of the public have not been satisfied with respect to some only of the said patents, then, if the Controller is satisfied that the applicant cannot efficie ntly or satisfactorily work the licence granted to him under those patents without infringing the other patents held by the patentee and if those patents involve important technical advancement or considerable economic significance in relation to the other patents, he may, by order, direct the grant of a licence in respect of the other patents also to enable the licensee to work the patent or patents in regard to which a licence is granted under section 84. (4) Where the terms and conditions of a licence ha ve been settled by the Controller, the licensee may, at any time after he has worked the invention on a commercial scale for a period of not less than twelve months, make an application to the Controller for the revision of the terms and conditions on the ground that the terms and conditions settled have proved to be more onerous than originally expected and that in consequence thereof the licensee is unable to work the invention except at a loss: Provided that no such application shall be entertained a sec ond time. 89. General purposes for granting compulsory licences .The powers of the Controller upon an application made under section 84 shall be exercised with a view to securing the following general purposes, that is to say, (a) that patented inventions are worked on a commercial scale in the territory of India without undue delay and to the fullest extent that is reasonably practicable; (b) that the interests of any person for the time being working or developing an invention i n the territory of India under the protection of a patent are not unfairly prejudiced. 90. Terms and conditions of compulsory licences .(1) In settling the terms and conditions of a licence under section 84, the Contr oller shall endeavour to secure (i) that the royalty and other remuneration, if any, reserved to the patentee or other person beneficially entitled to the patent, is reasonable, having regard to the nature of the invention, the expenditure incurred by the patentee in making the invention or in developing it and obtaining a patent and keeping it in force and other relevant factors; (ii) that the patented invention is worked to the fullest extent by the person to whom the licence is granted and with reasonable profit to him; (iii) that the patent ed articles are made available to the public at reasonably affordable prices; (iv) that the licence granted is a non -exclusive licence; (v) that the right of the licensee is non -assignable; (vi) that the licence is for the balance term of the patent unless a shorter term is consistent with public interest ; 45 1[(vii) that the licence is granted with a predominant purpose of supply in the Indian market and that the licensee may also export the patented product, if need be in accordance with the provisions of sub-clause ( iii) of clause ( a) of sub -section ( 7) of section 84; (viii) that in the case of semi -conductor technology, the licence granted is to work the invention for public non -commercial use; (ix) that in case the licence is granted to remedy a practice determined after judicial or administrative process to be anti -competitive, the licensee shall be permitted to export the patented product, if need be .] (2) No licence granted by the Controller shall authorise the licensee to import the patented article or an article or substance made by a patented process from abroad where such importation would, but for such authorisation, constitute an infringement of the rights of the patentee. (3) Notwithstanding anything contained in sub -section ( 2), the Central Government may, if in its opinion it is necessary so to do, in the public interest, direct the Controller at any time to authorise any licensee in respect of a patent to import the patented article or an article or substance made by a patented process from abroad (subject to such conditions as it considers necessary to impose relating among other matters to the royalty and other remuneration, if any, payable to the patentee, the quantum of import, the sale price of the imported article and the period of importation), and thereupon the Controller shall give effect to the directions. 91. Licensing of related patents .(1) Notwithstanding anything contained in the other provisions of this Chapter, at any time after the s ealing of a patent, any person who has the right to work any other patented invention either as patentee or as licensee thereof, exclusive or otherwise, may apply to the Controller for the grant of a licence of the first -mentioned patent on the ground that he is prevented or hindered without such licence from working the other invention efficiently or to the best advantage possible. (2) No order under sub -section ( 1) shall be made unless the Controller is satisfied (i) that the applicant is able and willin g to grant, or procure the grant to the patentee and his licensees if they so desire, of a licence in respect of the other invention on reasonable terms; and (ii) that the other invention has made a substantial contribution to the establishment or developm ent of commercial or industrial activities in the territory of India. (3) When the Controller is satisfied that the conditions mentioned in sub -section ( 1) have been established by the applicant, he may make an order on such terms as he thinks fit granting a licence under the first -mentioned patent and a similar order under the other patent if so requested by the proprietor of the first -mentioned patent or his licensee: Provided that the licence granted by the Controller shall be non -assignable except with the assignment of the respective patents. (4) The provisions of sections 87, 88, 89 and 90 shall apply to licences granted under this section as they appl y to licences granted under section 84. 92. Special provision for compulsory licences on notifications by Central Government .(1) If the Central Government is satisfied, in respect of any patent in force in circumstances of national emergency or in circums tances of extreme urgency or in case of public non -commercial use, that it is necessary that compulsory licences should be granted at any time after the sealing thereof to work the invention, it may make a declaration to that effect, by notification in the Official Gazette, and thereupon the following provisions shall have effect, that is to say , (i) the Controller shall , on application made at any time after the notification by any person interested , grant to the applicant a licence under the patent on su ch terms and conditions as he thinks fit; 1. Subs. by Act 15 of 2005, s. 54, for clause ( vii) (w.e.f. 1 -1-2005). 46 (ii) in settling the terms and conditions of a licence granted under this section, the Controller shall endeavour to secure that the articles manufactured under the patent shall be available to the public at the lo west prices consistent with the patentees deriving a reasonable advantage from their patent rights. (2) The provisions of sections 83, 87, 88, 89 and 90 shall apply in relation to the grant of licences under this section as they apply in relation to the gr ant of licences under section 84. (3) Notwithstanding anything contained in sub -section ( 2), where the Controller is satisfied on consideration of the application referred to in clause ( i) of sub -section ( 1) that it is necessary in (i) a circumstance of national emergency; or (ii) a circumstance of extreme urgency; or (iii) a case of public non -commercial use, which may arise or is required, as the case may be, including public health crises, relating to Acquired Immun o Deficiency Syndrome, human immunode ficiency virus, tuberculosis, malaria or other epidemics, he shall not apply any procedure specified in section 87 in relation to that application for grant of licence under this section: Provided that the Controller shall, as soon as may be practicable, i nform the patentee of the patent relating to the application for such non -application of section 87. 1[92A. Compulsory licence for export of patented pharmaceutical products in certain exceptional circumstances .(1) Compulsory licence shall be available for manufacture and export of patented pharmaceutical products to any country having insufficient or no manufacturing capacity in the pharmaceutical sector for the concerned product to address public health problems, provided compulsory licence has been granted by such country or such country has, by notification or otherwise, allowed importation of the patented phar maceutical products from India. (2) The Controller shall, on receipt of an application in the prescribed manner, grant a compulsory licence solely for manufacture and export of the concerned pharmaceutical product to such country under such terms and conditions as may be specified and publ ished by him. (3) The provisions of sub -sections ( 1) and ( 2) shall be without prejudice to the extent to which pharmaceutical products produced under a compulsory licen ce can be exported under any other provision of this Act. Explanation .For the purposes of this section, pharmaceutical products means any patented product, or product manufactured through a patented process, of the pharmaceutical sector needed to address public health problems and shall be inclusive of ingredients necessary for their manuf acture and diagnost ic kits required for their use.] 93. Order for licence to operate as a deed between parties concerned .Any order for the grant of a licence under this Chapter shall operate as if it were a deed granting a licence executed by the patentee and all other necessary parties embodying the terms and conditions, if any, settled by the Controller. 94. Termination of compulsory licence .(1) On an application made by the patentee or any other person deriving title or interes t in the patent, a compulsory licence granted under section 84 may be terminated by the Controller, if and when the circumstances that gave rise to the grant the reof no longer exist and such circumstances are unlikely to recur: Provided that the holder of the compulsory licence shall have the right to object to such termination. (2) While considering an application under sub -section ( 1), the Controller shall take into account that the interest of the person who had previously been granted the li cence is not unduly prejudiced .]. 1. Ins. by Act 15 of 2005, s. 55 (w.e.f. 1 -1-2005) . 47 CHAPTER XVII USE OF INVENTIONS FOR PURPOSES OF GOVERNMENT AND ACQUISITION OF INVENTIONS BY CENTRAL GOVERNMENT 99. Meaning of use of invention for purposes of Government. (1) For the purposes of this Chapter, an invention is said to be used for the purposes of Government if it is made, used, exercised or vended for the purposes of the Central Government, a State Governme nt or a Government undertaking. 1* * * * * (3) Nothing contained in this Chapter shall apply in respect of a ny such importation making or using of any machine, apparatus or other article or of any such using of any process or of any such importation, using or distribution of any medicine or drug, as may be made by virtue of one or

such using of any process or of any such importation, using or distribution of any medicine or drug, as may be made by virtue of one or more of the conditions specifie d in section 47. 100. Power of Central Government to use inventions for purposes of Government. (1) Notwithstanding anything contained in this Act, at any time after an application for a patent has been filed at the patent office or a patent has been granted, the Central Government and any person authorised in writing by it, may use the invention for the purposes of Government in accordance with the provisions of this Chapter. (2) Where an invention has, before the priority date of the relevant claim of the complete specification, been duly recorded in a document, or tested or tried, by or on behalf of the Government or a Government undertaking, otherwise than in consequence of the communication of the invention directly or indirectly by the patentee or by a person from whom he derives title, any use of the invention by the Central Government or any person authorised in writing by it for the purposes of Government may be made free of any royalty or othe r remuneration to the pa tentee. (3) If and so far as the invention has not been so recorded or tried or tested as aforesaid, any use of the invention made by the Central Government or any person authorised by it under sub -section ( 1), at any time after 2[grant of the patent ] or in consequence of any such communication as aforesaid, shall be made upon terms as may be agreed upon either before or after the use, between the Central Government or any person autho rised under sub -section ( 1) and the patentee, or, as may in default of agreement be determined by the High Court o n a reference under section 103 : 3[Provided that in case of any such use of any patent, the patentee shall be paid not more than adequate remuneration in the circumstances of each case, taking into account the economic value of the use of the patent.] (4) The authorisation by the Central Government in respect of an invention may be given under this section, either before or after the patent is granted and either before or after the acts in respect of which such authorisation is given or done, and may be given to any person, whether or not he is authorised directly or indirectly by the applicant or the patentee to make, use, exercise or vend the invention or import the machine, apparatus or other article or m edicine or drug covered by such patent. (5) Where an invention has been used by or with the authority of the Central Government for the purposes of Government under this section, then, 4[except in case of national emergency or other circumstances of extrem e urgency or for non -commercial use] , the Government shall notify the patentee as soon as practicable of the fact and furnish him with such information as to the extent of the use of the invention as he may, from time to time, reasonable require; and where the invention has been used for the purposes of a Government undertaking, the Central Government may call for such information as may be necessary for this purpose from such unde rtaking. 1. Sub -section ( 2) omitted by Act 38 of 2002, s. 40 (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 56, for the acceptance of the complete specification in respect of the patent (w.e.f. 1 -1-2005). 3. Subs. by Act 38 of 2002, s. 41, for the proviso (w.e.f. 20 -5-2003). 4. Subs. by s. 41, ibid., for certain words (w.e.f. 20 -5-2003). 48 (6) The right to make, use, exercise and vend an invention for the p urposes of Government under sub-section ( 1) shall include the 1[right to sell , on non -commercial basis, the goods] which have been made in exercise of that right, and a purchaser of goods so sold, and a person claiming through him, shall have the power to deal with the goods as if the Central Government or the person authorised under sub-section ( 1) were the patentee of the invention. (7) Where in respect of a patent which has been the subject of an authorisation under this section, there is an exclu sive licensee as is referred to in sub -section ( 3) of section 101, or where such patent has been assigned to the patentee in consideration of royalties or other benefits determined by reference to the use of the invention (including payments by way of minimum royalty), the notice directed to be given under sub -section ( 5) shall also be given to such exclusive licensee or assignor as the case may be, and the reference to the patentee in sub -section ( 3) shall be deemed to include a reference to such assig nor or exclusive licensee. 101. Rights of third parties in respect of use of invention for purposes of Government. (1) In relation to any use of a patented invention, or an invention in respect of which an application for a patent is pending, made for the purposes of Government (a) by the Central Government or any person authorised by the Central Government under section 100; or (b) by the patentee or applicant for the patent to the order made by the Central Government, the provisions of any licence, ass ignme nt or agreement granted or made , 2*** between the patentee or applicant for the patent (or any person who derives title fr om him or from whom he derives title) and any person other th an the Central Government shall be of no effect so far as those prov isions (i) restrict or regulate the use for the purposes of Government of the invention, or of any model , document or information relating thereto, or (ii) provide for the making of payments in respect of any use of the invention or of the model, document or information relating theret o for the purposes of Government 3***, and the reproduction or publication of any model or document in connection with the said use for the purposes of Government shall not be deemed to be an infringement of any copyright sub sisting in the model or document. (2) Where the patent, or the right to apply for or obtain the patent, has been assigned to the patentee in consideration of royalties or other benefits determined by refer ence to the use of the invention 2***, then, in rel ation to any use of the invention made for the purposes of Government by the patentee to the order of the Central Government, sub -section ( 3) of section 100 shall have effect as if that use were made by the virtue of an authority given under that section; and any rise of the invention for the purposes of Government by virtue of sub -section ( 3) of that section shall have effect as if the reference to the patentee included a reference to the assignor of the patent, and any sum payable by virtue of that sub -section shall be divided between the patentee and the assignor in such proportion as may be agreed upon between them or as may in default of agreement be determined by the High Court on a reference under section 103. (3) Where by virtue of sub -section ( 3) of section 100, payments are required to be made by the Central Government or persons authorised under sub -section ( 2) of that section in respect of the use of an invention for the purposes of Government and where in respect of such patent there is an exclus ive licensee authorised under his licence to use the invention for the purposes of Government, such sum shall be shared by the patentee and such licensee in such proportions, if any, as may be agreed upon between them or as may in default of agreement be determined by the High Court on a reference under section 103 to be just, having regard to any expenditure incurred by the licensee 1. Subs. by s. 41, ibid., for right to sell the goods (w.e.f. 20 -5-2003). 2. The words , whether before or after the commencement of this Act, omitted by Act 38 of 2002, s. 42 (w.e.f. 20 -5-2003). 3. The brackets and words (including payments by way of minimum royalty) omitted by s. 42, ibid. (w.e.f. 20 -5-2003). 49 (a) in developing the said invention; or (b) in making payments to the patentees other than royalties or other benefits determined by reference to the use of the invention 1*** in consideration of the licence. 102. Acquisition of inventions and patents by the Central Government. (1) The Central Government may, if satisfied that it is necessary that an invention which is the subject of an application for a patent or a patent should be acquired from the applicant or the patentee for a public purpose, publish a notification to that effect in the Offici al Gazette, and thereupon the invention or patent and all rights in respect of the invention or patent shall, by force of this section, stand transferred to and be vested in the Central Government. (2) Notice of the acquisition shall be given to the applic ant, and, where a patent has been granted, to the patentee and other persons, if any, appearing in the register as ha ving an interest in the patent. (3) The Central Government shall pay to the applicant, or, as the case may be, the patentee and other perso ns appearing on the register as having an interest in the patent such compensation as may be agreed upon between the Central Government and the applicant, or the patentee and other persons; or, as may, in default of agreement, be determined by the High Cou rt on a reference under section 103 to be just having regard to the expenditure incurred in connection with the invention and, in the case of a patent, the term thereof, the period during which and the manner in which it has already been worked (including the profits made during such period by the patentee or by his licensee whether exclusive or otherwise) and other relevant factors. 103. Reference to High Court of disputes as to use for purposes of Government. (1) Any dispute as to the exercise by the Cent ral Government or a person authorised by it of the powers conferred by section 100, or as to terms for the use of an invention for the purposes of Government thereunder or as to the right of any person to receive any part of a payment made in pursuance of sub-section ( 3) of that section or as to the amount of compensation payable for the acquisition of an invention or a patent under section 102, may be referred to the High Court by either party to the dispute in such manner as may be prescribed by the rules of the High Court. (2) In any proceeding under this section to which the Central Government is a party, the Central Government may, (a) if the patentee is a party to the proceedings, petition by way of counter -claim for revocation o f the patent on any ground upon which a patent may be revoked under section 64; and (b) whether a patentee is or is not a party to the proceedings, put in issue the validity of the patent without petitioning for its revocation. (3) If in such proceedings as aforesaid any question arises whether an invention has been recorded, tested or tried as is mentioned in section 100, and the disclosure of any document regarding the invention, or of any evidence of the test or trial thereof, would, in the opinion of t he Central Government, be prejudicial to the public interest, the disclosure may be made confidentially to the advocate of the other party or to an independent expert mutually agreed upon. (4) In determining under this section any dispute between the Centr al Government and any person as to terms for the use of an invention for the purposes of Government, the High Court shall have regard to any benefit or compensation which that person or any person from whom he derive title, may have received, or may be ent itled to receive, directly or indirectly in respect of the use of the invention in question for the purposes of Government. (5) In any proceedings under this section, the High Court may at any time order the whole proceedings or any question or issue of fa ct arising therein to be referred to an official referee, commissioner or an arbitrator on such terms as the High Court may direct, and references to the High Court in the foregoing provisions of this section shall be construed accordingly. (6) Where the i nvention claimed in a patent was made by a person who at the time it was made was in the service of the Central Govern ment or of a State Government or was an employee of a Government 1. The words including payments by way of minimum royalty omitted by Act 38 of 2002 , s. 42 (w.e.f. 20 -5-2003). 50 undertaking and the subject -matter of the invention is certified by the r elevant Government or the principal officer of the Government undertaking to be connected with the work done in the course of the normal duties of the Government servant or employee of the Government undertaking, then, notwithstanding anything contained in this section, any dispute of the nature referred to in sub -section ( 1) relating to the invention shall be disposed of by the Central Government conformably to the provisions of this section so far as may be applicable, but before doing so the Central Gove rnment shall give an opportunity to the patentee and such other parties as it considers have an interest in the matter to be heard. CHAPTER XVIII SUITS CONCERNING INFRINGEMENT OF PATENTS 104. Jurisdiction. No suit for a declaration under section 105 or for any relief under section 106 or for infringement of a patent shall be instituted in any court inferior to a district court havin g jurisdiction to try the suit: Provided that where a counter -claim for revocation of the patent is made by the defendant, the suit, along with the counter -claim, shall be transferred to the High Court for decision. 1[104A. Burden of proof in case of suits concerning infringement .(1) In any suit for infringement of a patent, where the subject matter of patent is a process for obtaining a product, the court may direct the defendant to prove that the process used by him to obtain the product, identical to the product of the patented process, is different from the patented process if, (a) the subject matter of the patent is a pro cess for obtaining a new product; or (b) there is a substantial likelihood that the identical product is made by the process, and the patentee or a person deriving title or interest in the patent from him, has been unable through reasonable efforts to dete rmine the process actually used: Provided that the patentee or a person deriving title or interest in the patent from him, first proves that the product is identical to the product directly obtained by the patented process. (2) In considering whether a par ty has discharged the burden imposed upon him by sub -section ( 1), the court shall not require him to disclose any manufacturing or commercial secre

the burden imposed upon him by sub -section ( 1), the court shall not require him to disclose any manufacturing or commercial secrets, if it appears to the court that it would be unreasonable to do so.] 105. Power of court to make declarati on as to non -infringement. (1) Notwithstanding anything contained in section 34 of the Specific Relief Act, 1963 (47 of 1963) , any person may institute a suit for a declaration that the use by him of any process, or the making, use or sale of any article by him does not, or would not, constitute an infringement of a claim of a patent against the patentee or the holder of an exclu sive licence under the patent, notwithstanding that no assertion to the contrary has been made by the patentee or the licensee, if it is shown (a) that the plaintiff has applied in writing to the patentee or exclusive licensee for a written acknowledgment to the effect of the declaration claimed and has furnished him with full particulars in writing of the process or article in question; and (b) that the patentee or licensee has refused or neglected to give such an acknowledgment. (2) The costs of all part ies in a suit for a declaration brought by virtue of this section shall, unless for special reasons the court thinks fit to order other wise, be paid by the plaintiff. (3) The validity of a claim of the specification of a patent shall not be called in quest ion in a suit for a declaration brought by virtue of this section, and accordingly the making or refusal of such a declaration in the case of a patent shall not be deemed to imply that the patent is valid or invalid. (4) A suit for a declaration may be bro ught by virtue of this section at any time 2[after the publication of grant of a patent ], and references in this section to the patentee shall be construed accordingly. 1. Ins. by Act 38 of 2002, s. 43 (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 57, for certain words (w.e.f. 1 -1-2005). 51 106. Power of court to grant relief in cases of groundless threats of infringement proc eedings. (1) Where any person (whether entitled to or interested in a patent or an application for a patent or not) threatens any other person by circulars or advertisements or by communications, oral or in writing addressed to that or any other person, wi th proceedings for infringement of a patent, any person aggrieved thereby may bring a suit against him praying for the following reliefs, that is to say (a) a declaration to the effect that the threats are unjustifiable; (b) an injunction against the cont inuance of the threats; and (c) such damages, if any, as he has sustained thereby. (2) Unless in such suit the defendant proves that the acts in respect of which the proceedings were threatened constitute or, if done, would constitute, an infringement of a patent or of rights arising from the publication of a complete specification in respect of a claim of the specification not shown by the plaintiff to be invalid, the court may grant to the plaintiff all or any of the reliefs prayed for. Explanation .A mer e notification of the 1[existence] of a patent does not constitute a threat of proceeding within the meaning of this section. 107. Defences, etc., in suit for infringement. (1) In any suit for infringement of a patent, every ground on which it may be revok ed under section 64 shall be available as a ground for defence. (2) In any suit for infringement of a patent by the making, using or importation of any machine, apparatus or other article or by the using of any process or by the importation, use or distrib ution of any medicine or drug, it shall be a ground for defence that such making, using, importation or distribution is in accordance with any one or more of the conditions specified in section 47. 2[107A. Certain acts not to be considered as infringement .For the purposes of this Act, (a) any act of making, constructing, 3[using, selling or importing] a patented invention solel y for uses reasonably related to the development and submission of information required under any law for the time being in force, in India, or in a country other than India, that regulates the manufacture, construction, 4[use, sale or import] of any product; (b) importation of patented products by any person from a person 5[who is duly authorised under the law to produce and s ell or distribute the product], shall not be considered as a n infringement of patent rights.] 108. Reliefs in suits for infringement. 6[(1)] The reliefs which a court may grant in any suit for infringement include an injunction (subject to such terms, if any, as the court thinks fit) and, at the option of the plaintiff, either damages or an account of profits. 7[(2) The court may also order that the goods which are found to be infringing and materials and implement, the predominant use of which is in the creation of infringing goods shall be seized, forfeited or destroyed, as the court deems fit under the circumstances of the case without payment of any compensation .] 109. Right of exclusive licensee to take proceedings against infringement. (1) The holder of an exclusive licence shall have the like right as the patentee to institute a suit in respect of any infringement of the patent committed after the date of the licence, and in awarding damages or an account of profits or granting any other relief in any such s uit the court shall take into consideration any loss suffered or likely to be suffered by the exclusive licensee as such or, as the case may be, the profits earned by means of the infringement so far as it constitutes an infringement of the rights of the e xclusive licensee as such. 1. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for existing (w.e.f. 20 -12-1974). 2. Ins. by Act 38 of 2002, s. 44 (w.e.f 20 -5-2003). 3. Subs. by Act 15 of 2005, s. 58, for using or selling (w.e.f. 1 -1-2005). 4. Subs. by s. 58, ibid., for use or sale (w.e.f. 1 -1-2005). 5. Subs. by s. 58, ibid., for who is duly authorised by the patentee to sell or distribute the product (w.e.f. 1 -1-2005). 6. Section 108 renumbered as sub -section ( 1) thereof by Act 38 of 2002, s. 45 (w.e.f. 20 -5-2003). 7. Ins. by s. 45, ibid. (w.e.f. 20 -5-2003). 52 (2) In any suit for infringement of a patent by the holder of an exclusive licence under sub -section ( 1), the patentee shall, unless he has joined as a plaintiff in the suit, be added as a defendant, but a patentee so added as de fendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings. 110. Right of licensee under section 84 to take proceedings against infringement. Any person to whom a licence has been granted under section 84 sha ll be entitled to call upon the patentee to take proceedings to prevent any infringement of the patent, and, if the patentee refuses or neglects to do so within two months after being so called upon, the licensee may institute proceedings for the infringem ent in his own name as though he were the patentee, making the patentee a defendant; but a patentee so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings. 111. Restriction on power of court to grant damages or account of profits for infringement. (1) In a suit for infringement of a patent, damages or an account of profits shall not be granted against the defendant who proves that at the date of the infringement he was n ot aware and had no reasonable grounds for bel ieving that the patent existed. Explanation .A person shall not be deemed to have been aware or to have had reasonable grounds for believing that a patent exists by reason only of the application to an article of the word patent , patented or any word or words expressing or implying that a patent has been obtained for the article, unless the number of the patent accompanies the word or words in question. (2) In any suit for infringement of a patent the court may, if it thinks fit, refuse to grant any damages or an account of profits in respect of a ny infringement committed after a failure to pay any renewal fee within the prescribed period and before any extension of that period. (3) Where an amendment of a specification by way of disclaimer, correction or explanation has been allowed under this Act after the publication of the specification, no damages or account of profits shall be granted in any proceeding s in respect of the use of the invention before the date of the decision allowing the amendment, unless the court is satisfied that the specific ation as originally published was framed in good faith and with reasonable skill and knowledge. (4) Nothing in this section shall affect the power of the court to grant an injunction in any suit for infringement of a patent. 112. [Restriction o n power of court to grant injunction in certain cases.]Omitted by The Patents (Amendment) Act, 2002 (38 of 2002), s. 46 ( w.e.f. 20-5-2003). 113. Certificate of validity of specification and costs of subsequent suits for infringement thereof. 1[(1) If in any proceedings before 2*** a High Court for the revocation of a patent under section 64 and section 104, 3***, the validity of any claim of a specification is contested and that claim is found by 2*** the High Court to be valid, 2*** the High Court may certify that the validity of that claim was contested in those proceedings and was upheld]. (2) Where any such certificate has been granted, then, if in any subsequent suit before a court for infringement of that claim of the patent or in any subsequent proceeding for revocation of the patent in so far as it relates to that claim, the patentee or other person relying on the validity of the claim obtains a final order or judgment in his favour, he shall be entitled to an order for the pay ment of his full co sts, charges and expenses of an incidental to any such suit or proceeding properly incurred so far as they concern the claim in respect of which the certificate was granted, unless the court trying the suit or proceeding otherwise direct s: Provided that the costs as specified in this sub -section shall not be ordered when the party disputing the validity of the claim satisfies the court that he was not aware of the grant of the certificate when he raised the dispute and withdrew forthwith such defence when he beca me aware of such a certificate. 1. Subs. by Act 15 of 2005, s. 59, for sub -section ( 1) (w.e.f. 2 -4-2007). 2. The words the Appellate Board or omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 3. The words as the case may be omitted by s. 13, ibid. (w.e.f. 4 -4-2021). 53 1[(3) Nothing contained in this section shall be construed as authorising the courts 2*** hearing appeals from decrees or orders in suits for infringement or petitions for revocation, as the case may be, to pass orders for costs on the scale referred to therein]. 114. Relief for infringement of partially valid specification .(1) If in proceedings for infringement of a patent it is found that any claim of the specification, being a claim in respect of which infringement is alleged, is valid, but that any other claim is invalid, the court may grant relief in respect of any valid claim which is infringed: Provided that the court shall not grant relief except by way of injunction save in the circumstance s mentioned in sub -section ( 2). (2) Where the plaintiff proves that the invalid claim was framed in good faith and with reasonable skill and knowledge, the court shall grant relief in respect of any valid claim which is infringed subject to the discretion of the court as to costs and as to the date from which damages or an account of profits should be reckoned, and in exercising such discretion the court may take into consideration the conduct of the parties in inserting such invalid claims in the specificati on or permitting them to remain there. 115. Scientific advisers. (1) In any suit for infringement or in any proceeding before a court under this Act, the court may at any time, and whether or not an application has been made by any party for that purpose, appoint an independent scientific adviser to assist the court or to inquire and report upon any such question of fact or of opinion (not involving a question of interpretation of law) as it may formulate for the purpose. (2) The remuneration of the scienti fic adviser shall be fixed by the court and shall include the costs of making a report and a proper daily fee for any day on which the scientific adviser may be required to attend before the court, and such remuneration shall be defrayed out of moneys prov ided by Parliament by law for the purpose. 3[CHAPTER XIX 4[APPEALS ] 116. [Appellate Board .] Omitted by the Tribunals Reforms Act , 2021 (33 of 201), s. 13 ( w.e.f. 4-4- 2021). 117. [Staff of Appellate Board .]Omitted by s . 13, ibid. (w.e.f. 4-4-2021). 117A. Appeals to 5[High Court] .(1) Save as otherwise expressly provided in sub -section ( 2), no appeal shall lie from any decision, order or direction made or issued under this Act by the Central Government, or from any act or order of the Controller for the purpose of giving effect to any such decision, order or direction. (2) An appeal shall lie to the 3[High Court] from any decision, order or direction of the Controller

order or direction. (2) An appeal shall lie to the 3[High Court] from any decision, order or direction of the Controller of Central Govern ment under section 15, section 16, section 17, section 18, section 19, 6[section 20, sub-section (4) of section 25, section 28], section 51, section 54, section 57, section 60, section 61, section 63, section 66, sub -section ( 3) of section 69, section 78, sub -sections ( 1) to ( 5) of section 84, section 85, section 88, section 91, section 92 and section 94. (3) Every appeal under this section shall be in the prescribed form and shall be verified in such manner as may be prescribed and shall be acc ompanied by a copy of the decision, order or direction appealed against and by such fees as may be prescribed. 1. Subs. by Act 15 of 2005, s. 59, for sub -section ( 3) (w.e.f. 2 -4-2007). 2. The words or the Appellate Board omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 3. Subs. by Act 38 of 2002, s. 47, for Chapter XIX (w.e.f. 20 -5-2003). 4. Subs. by Act 33 of 2021, s. 13, for heading APPEALS TO THE APPELLATE BOARD (w.e.f. 4 -4-2021). 5. Subs. by s. 13, ibid., for Appellate Board (w.e.f. 4 -4-2021). 6. Subs. by s. 61, ibid., for section 20, section 25, section 27, section 28 (w.e.f. 2 -4-2007). 54 (4) Every appeal shall be made within three months from the date of the decision, order or direction, as the case may be, of the Contr oller or th e Central Government or within such further time as the 3[High Court] may, in accordance with the rules made by it , allow. 117B . [Procedure and powers of Appellate Board .] Omitted by the Tribunals Reforms Act , 2021 (33 of 201), s. 13 ( w.e.f. 4-4-2021). 117C . [Bar of jurisdiction of courts, etc .] Omitted by s . 13, ibid. (w.e.f. 4-4-2021). 117D. [Procedure for application for rectification, etc., before Appellate Board .] Omitted by the Tribunals Reforms Act , 2021 (33 of 201), s. 13 ( w.e.f. 4-4-2021). 117E. Appearance of Controller in legal proceedings .(1) The Controller shall have the right to appear and be heard (a) in any legal proceedings before the 1[High Court] in which the relief sought includes alteration or rectification of the register or in which any question relating to the practice of the patent office is raised; (b) in any appeal to the 1[High Court] from an order of the Controller on an application for grant of a patent (i) which is not opposed, and the application is either refused by the Controller or is accepted by him subject to any amendments, modifications, conditions or limitations, or (ii) which has been opposed and the Controller considers that his appearance is necessary in the public interest, and the Controller shall appear in any case if so directed by the 1[High Court] . (2) Unless the 1[High Court] otherwise directs, the Controller may, in lieu of appearing, submit a statement in writing s igned by him, giving such particulars as he thinks proper of the proceedings before him relating to the matter in issue or of the grounds of any decision given by him or of the practice of the patent office in like cases, or of other matters relevant to th e issues and within his knowledge as the Controller may deem it necessary, and such statement shall be evidence in the proceeding. 117F . [Costs of Controller in proceedings before Appellate Board .] Omitted by the Tribunals Reforms Act, 2021 (33 of 201), s. 13 (w.e.f. 4 -4-2021 ). 117G. [Transfer of pending proceedings to Appellate Board. ] Omitted by s. 13 , ibid. (w.e.f . 4-4- 2021). 117H. [Power of Appellate Board to make rules .] Omitted by s. 13, ibid. (w.e.f. 4-4-2021). CHAPTER XX PENALTIES 118. Contravention of Secrecy provisions relating to certain inventions. If any person fails to comply with any direction given under section 35 2[or makes or causes to be made an application for the grant of a patent in contravention of section 39], he shall be punishable with imprisonment for a term which may extend to two years, or with fine, or with both. 119. Falsification of entries in register, etc. If any person makes, or causes to be made, a false entry in any register kept under this Act , or a writing falsely purporting to be a copy of an entry in such a register, or produces or tenders, or causes to be produced or tendered, in evidence any such writing knowing the entry or writing to be false, he shall be punishable with imprisonment for a term which may extend to two years, or with fine or with both. 120. Unauthorised claim of patent rights. If any person falsely represents that any article sold by him is patented in India or is the subject of an application for a patent in India, he sha ll be punishable with fine which may extend to 3[one lakh rupees]. 1. Subs. by Act 33 of 2021, s. 13, for Appellate Board (w.e.f. 4-4-2021). 2. Ins. by Act 38 of 2002, s. 48 (w.e.f. 20 -5-2003). 3. Subs. by Act 15 of 2005, s. 64, for ten thousand rupees (w.e.f. 1 -1-2005). 55 Explanation l.For the purposes of this section, a pers on shall be deemed to represent (a) that an article is patented in India if there is stamped, engraved or impressed on, or otherwise applied to, the article the word patent or patented or some other word expressing or implying that a patent for the article has been obtained in India; (b) that an article is the subject of an application for a patent in India, if there are stamped, engraved or impressed on, or otherwise applied to, the article the words patent applied for , patent pending , or some other words implying that an application for a patent for the article has been made in India. Explanation 2.The use of words patent , patented , patent applied for , patent pending or other words expressing or implying that an article is pat ented or that a patent has been applied for shall be deemed to refer to a patent in force in India, or to a pending application for a patent in India, as the case may be unless there is an accompanying indication that the patent has been obtained or applie d for in any country outside India. 121. Wrongful use of words patent office. If any person uses on his place of business or any document issued by him or otherwise the words patent office or any other words which would reasonably lead to the belief th at his place of business is, or is officially connected with, the patent office, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both. 122. Refusal or failure to supply information. (1) If any pers on refuses or fails to furnish : (a) to the Central Government any information which he is required to furnish under sub-section ( 5) of section 100; (b) to the Controller any information or statement which he is required to f urnish by or under section 146, he shall be punishable with fine which may extend to 1[ten lakh rupees ]. (2) If any person, being required to furnish any such information as is referred to in sub -section ( 1), furnishes information or statement which is false, an d which he either knows or has reason to believe to be false or does not believe to be true, he shall be punishable with imprisonment which may extend to six months, or with fine, or with both. 123. Practice by non -registered patent agents. If any person c ontravenes the provisions of section 129, he shall be punishable with fine which may extend to 2[one lakh rupees in the case of a first offence and five lakh rupees] in the case of a second or subsequent offence. 124. Offences by companies. (1) If the p erson committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the com mission of the offence shall be deemed to be guilty of the offe nce and shall be liable to be proceeded ag ainst and punished accordingly: Provided that nothing contained in this sub -section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub -section ( 1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be g uilty of that offence and shall be liable to be proceeded against and punishe d accordingly. 1. Subs. by Act 15 of 2005, s. 65, for twenty thousand rupees (w.e.f. 1 -1-2005). 2. Subs. by s. 66, ibid., for ten thousand rupees in the case of a first offence and forty thousand rupees (w.e.f. 1 -1-2005). 56 Explanation .For the purposes of this section, (a) company means any body corporate and includes a firm or other association of individuals; and (b) director , in relation to a firm, means a partner in the firm. CHAPTER XXI PATENT AGENTS 1[125. Register of patent agents. (1) The Controller shall maintain a register to be called the register of patent agents in which shall be entered the names, addresses and other relevant particulars, as may be prescribed, of all persons qualified to have their names so entered under section 126. (2) Notwithstanding anything contained in sub -section ( 1), it shall be lawful for the Controller to keep the register of patent agents in computer floppies, diskettes or any other electronic form subject to such safeguards as may be prescribed.] 126. Qualifications for registration as patent agents. (1) A person shall be qualified to have his name entered in the regist er of patent agents if he fulfi ls the following conditions, namely: (a) he is a citizen of India; (b) he has completed the age of 21 y ears; (c) he has obtained a 2[degree in science, engineering or technology from any University established under law for the time being in force] in the territory of India or possesses such other equivalent qualifications as the Central Government may spec ify in this behalf, and, in addition, 3* * * * * (ii) has passed the qualifying examination prescribed for the purpose; 4[or] 5[(iii) has, for a total period of not less than ten years, functioned either as an examiner or discharged the functions of the Controller under section 73 or both, but ceased to hold any such capacity at the time of making the application for registration;] (d) he has paid such fee as may be prescribed. 5[(2) Notwithstanding anything contained in sub -section ( 1), a person w ho has been registered as a patent agent before the commencement of 6[the Patents (Amendment) Act, 200 5 (15 of 2005) ] shall be entitled to continue to be, or when required to be re -registered, as a patent agent, on payment of the fee as may be prescribed.] 127. Rights of patent agents. Subject to the provisions contained in this Act and in any rules made thereunder, every patent agent whose name is entered in the register shall be entitled : (a) to prac tice before the Controller; and (b) to prepare all docu ments, transact all business and discharge such other functions as may be prescribed in connection with any proceeding before the Controller under this Act. 128. Subscription and verification of certain documents by patent agents. (1) 7*** all applications and communications to the Controller under this Act may be signed by a patent agent authorised in writing in this behalf by the person concerned. 1. Subs. by Act 38 of 2002, s. 52, for section 125 (w.e.f. 20 -5-2003). 2. Subs. by s. 53, ibid., for degree from any University (w.e.f. 20 -5-2003). 3. Sub-clause ( i) omitted by Act 15 of 2005, s. 67 ( w.e.f. 1 -1-2005). 4. Ins. by Act 38 of 2002, s. 53 (w.e.f. 20-5-2003). 5. Subs. by Act 38 of 2002, s. 53, for sub -section ( 2) (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 2005, s. 67, for the Patents (Amend ment) Act, 2002 (38 of 2002) (w.e.f. 1 -1-2005). 7. The words, brackets and figure Subject to the provisions contained in sub -section ( 2) and to

2005). 7. The words, brackets and figure Subject to the provisions contained in sub -section ( 2) and to any rules made under this Act, omitted by Act 38 of 2002, s. 54 (w.e.f. 20 -5-2003). 57 1* * * * * 129. Restrictions on practice as patent agents. (1) No person, either alone or in partne rship s with any other person, shall practise, describe or hold himself out as a patent agent, or permit himself to be so described or held out, unless he is registered as a patent agent or, as the case may be, unless he and all his partners are so register ed. (2) No company or other body corporate shall practise, describe itself or hold itself out as patent agents or permit itself to be so described or held out. Explanation .For the purposes of this section, practise as a patent agent includes any of the following acts, namely: (a) applying for or obtaining patents in India or elsewhere; (b) preparing specifications or other documents for the purposes of this Act or of the p atent law of any other country; (c) giving advice other than of a scientific or technical nature as to the validity of patents or their infringement. 130. Removal from register of patent agents and restoration. (1) The 2[Controller] may remove the name of any person from the register when 3[he] is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as 6[he] thinks fit to make (i) that his name has been entered in the register by error or on account of misrepresentation or suppression of material fact; (ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of misconduct in his professional capacity which in the opinion of the 5[Controller] renders him unfit to be kept in the register. (2) The 5[Controller] may, on application and on sufficient cause being shown, restore to the register the name o f any person removed therefrom. 131. Power of Controller to refuse to deal with certain agents. (1) Subject to any rules made in this behalf, the Controller may ref use to recognise as agent in respect of any business under this Act (a) any individual whose name has been removed from, and not restored to, the register; (b) any person who has been convicted of an offence under section 123; (c) any person, not being re gistered as a patent agent, who in the opinion of the Controller is engaged wholly or mainly in acting as agent in applying for patents in India or elsewhere in the name or for the benefit of the person by whom he is employed; (d) any company or firm, if a ny person whom the Controller could refuse to recognise as agent in respect of any business under this Act, is acting as a director or manager of the compa ny or is a partner in the firm. (2) The Controller shall refuse to recognise as agent in respect of a ny business under this Act any person who neither resides nor has a place of business in India. 132. Savings in respect of other persons authorised to act as agents. Nothing in this Chap ter shall be deemed to prohibit (a) the applicant for a patent 4*** from drafting any specification or appearing or acting before the Controller; or 1. Sub -section ( 2) omitted by Act 38 of 2002 , s. 54 (w.e.f. 20 -5-2003). 2. Subs. by s. 55, ibid., for Central Government (w.e.f. 20 -5-2003). 3. Subs. by s. 55, ibid., for it (w.e.f. 20 -5-2003). 4. The words or any person, not being a patent agent, who is duly authorised by the applicant omitted by s. 56 , ibid. (w.e.f. 20 -5-2003). 58 (b) an advocate, not being a patent agent, from taking part in any 1[hearing before the Controller on behalf of a party who is taking part in any proceedings under this Act] . CHAPTER X XII INTERNATIONAL ARRANGEMENTS 2[133. C onvention countries .Any country, which is a signatory or party or a group of countries, union of countries or inter -governmental organi sations which are signatories or parties to an international, regional or bi -lateral treaty, convention or arrangement to which India is also a signatory or party and which affords to the applicants for patents in India or to citizens of India similar privileges as are granted to their own citizens or citizens to their member countries in respect of the grant of patents and protection of patent rights shall be a convention country or convention countries for the purposes of this Act .] 134. Notification as to count ries not providing for reciprocity. Where any country specified by the Central Government in this behalf by notification in the Official Gazette does not accord to citizens of India the same rights in respect of the grant of patents and the protection of p atent rights as it accords to its own nationals, no national of such country shall be entitled, either solely or jointly with an y other person, (a) to apply for the grant of a patent or be registered as the proprietor of a patent; (b) to be registered as the assignee of the proprietor of a patent; or (c) to apply for a licence or hold any licence under a patent granted under this Act. 135. Convention applications. (1) Without prejudice to the provisions contained in section 6, where a person has made an application for a patent in respect of an invention in a convention country (hereinafter referred to as the basic application ), and that person or the legal represen tative or assignee of that person makes an application under this Act for a patent within twelve months after the date on which the basic application was made, the priority date of a claim of the complete specification, being a claim based on matter disclo sed in the basic application, is the date of m aking of the basic application. Explanation .Where applications have been made for similar protection in respect of an invention in two or more convention countries, the period of twelve months referred to in t his sub -section shall be reckoned from the date on which the earlier or earliest of the said applications was made. (2) Where applications for protection have been made in one or more convention countries in respect of two or more inventions which are cogn ate or of which one is a modification of another, a single convention application may, subject to the provisions contained in section 10, be made in respect of those inventions at any time within twelve months from the date of the earliest of the sa id appl ications for protection: Provided that the fee payable on the making of any such application shall be the same as if separate applications have been made in respect of each of the said inventions, and the requirements of clause ( b) of sub -section ( 1) of se ction 136 shall, in the case of any such application, apply separately to the applications for protection in respect of each of the said inventions. 3[(3) In case of an application filed under the Patent Cooperation Treaty designating India and claiming priority from a previously filed application in India, the provisions of sub -sections ( 1) and ( 2) shall apply as if the previously filed applica tion were the basic application : Provided that a request for examination under section 11B shall be made only fo r one of the applications filed in India .] 136. Special provisions relating to convention applications. (1) Eve ry convention application shall (a) be accompanied b y a complete specification; and 1. Subs. by Act 38 of 2002 , s. 56, for certain words (w.e.f. 20 -5-2003). 2. Subs. by Act 15 of 2005, s. 68, for section 133 (w.e.f. 1 -1-2005). 3. Ins. by Act 15 of 2005, s. 69 (w.e.f. 1 -1-2005). 59 (b) specify the date on which and the convention country in which the application for protection, or as the case may be, the first of such applications was made; and (c) state that no application for protection in respect of the invention had been made in a convention country before that date by the applicant or by any per son from whom he derives title. (2) Subject to the provisions contained in section 10, a complete specification filed with a convention application may include claims in respect of developments of, or additions to, the invention in respect of which the application for protection was made in a convention country, being developments or additions in respect of w hich the applicant would be en titled under the provisions of section 6 to make a separate application for a patent . (3) A convention applicatio n shall not be post -dated under sub -section ( 1) of section 17 to a date later than the date on which under the provisions of this Act the application could have been made. 137. Multiple priorities. (1) Where two or more applications for patents in respect of inventions have been made in one or more convention countries and those inventions are so related as to constitute one invention, one application may be made by any or all of the persons referred to in sub -section ( 1) of section 135 within twelve months from the date on which the earlier or earliest of those applications was made, in respect of the inventions disclosed in the specifications which accompanied the basic applications. (2) The priority date of a claim of the complete specification, being a c laim based on matters disclosed in one or more of the basic applications, is the date on which that matter was first so disclosed. (3) For the purposes of this Act, a matter shall be deemed to have been disclosed in a basic application for protection in a convention country if it was claimed or disclosed (otherwise than by way of disclaimer or acknowledgment of a prior art) in that application, or any documents submitted by the applicant for protection in support of and at the same time as that application, but no account shall be taken of any disclosure effected by any such document unless a copy of the document is filed at the patent office with the convention application or within such period as may be prescribed after the filing of that application. 138. Supplementary provisions as to convention applications. 1[(1) Where a convention application is made in accordance with the provisions of this Chapter, the applicant shall furnish, when required by the Controller, in addition to the complete specification , copies of the specifications or corresponding documents filed or deposited by the applicant in the patent office of the convention country as referred to in section 133 verified to the satisfaction of the Controller, within the prescribed period from the date of communication by the Controller .] (2) If any such specification or other document is in a foreign language, a translation into English of the specification or document, verified by affidavit or otherwise to the satisfaction of the Controller, shal l be 2[furnished when required by the controller]. (3) For the purposes of this Act, the date on which an application was made in a convention country is such date as the Controller is satisfied by certificate of the official chief or head of the patent office of the convention country or otherwise, is the date on which the application was made in that convention country. 3[(4) An international application filed under the Patent Cooperation Treaty designating India shall have effect of filing an applicati on for patent under section 7, section 54 and section 135, as the case may be, and the title, description, claim and abstract and drawings, if any, filed in the international application shall be taken as complete specification for the purposes of this Act . 1. Subs. by Act 15 of 2005, s. 70, for sub -section ( 1) (w.e.f. 1 -1-2005). 2. Subs. by Act 38 of 2002, s. 58, for annexed to the specification or document (w.e.f. 20 -5-2003). 3. Ins. by s. 58, ibid. (w.e.f. 20 -5-2003). 60 (5) The filing date of an application for patent and its complete specification processed by the patent office as designated office shall be the international filing date accorded under the Patent Cooperation Treaty. (6) Amendment, if any, proposed by the applicant for an international application designating India or designating and electing India before international searching authority or preliminary made examination authority shall, if the applicant so desires, be taken as an amendment made before t he patent office.] 139. Other provisions of Act to apply to convention applications. Save as otherwise provided in this Chapter, all the provisions of this Act shall apply in relation to a convention application and a patent granted in pursuance thereof as they apply in relation to an ordinary application and a patent granted in pursuance thereof. CHAPTER XXIII MISCELLANEOUS 140. Avoidance of certain restrictive conditions. (1) It shall not be lawful to insert (i) in any contract for or in relation to the sale or lease of a patented article or an article made by a patented process; or (ii) in a licence to manufacture or use a patented article; or (iii) in a licence to work any process protected by a patent, a condition the effect of which may be (a) to req uire the purchaser, lessee, or licensee to acquire from the vendor, lessor, or licensor, or his nominees, or to prohibit him from acquiring or to restrict in any manner or to any extent his right to acquire from any person or to prohibit him from acquiring except from the vendor, lessor, or licensor or his nominees, any article other than the patented article or an article other than that made by the patented process; or (b) to prohibit the purchaser, lessee or licensee from using, or to restrict in any man ner or to any extent the right of the purchaser, lessee or licensee, to use an article other than the patented article or an article other than that made by the patented process, which is not supplied by the vendor, lessor or licensor or his nominee; or (c) to prohibit the purchaser, lessee or licensee from using or to restrict in any manner or to any extent the right of the purchaser, lessee or licensee to use any process other than the pat ented process ; or 1[(d) to provide exclusive grant back, prevention to challenges to validity of patent and coercive package licensing ,] and any such condition shall be void. (2) A condition of the nature referred to in clause ( a) or clause ( b) or clause ( c) of sub -section ( 1) shall not cease to be a condition falling within that sub -section merely by reason of the fact that the agreement containing it has been entered into separately, whether before or after the contract relating

section merely by reason of the fact that the agreement containing it has been entered into separately, whether before or after the contract relating to the sale, lease or licence of the patented article or process. (3) In proceedings against any person for the infringement of a patent, it shall be a defence to prove that at the time of the infringement there was in force a contract relating to the patent and containing a condition declared un lawful by this section: Provi ded that this sub -section shall not apply if the plaintiff is not a party to the contract and proves to the satisfaction of the court that the restrictive condition was inserted in the contract without his knowledge and consent, express or implied. (4) Not hing in this section shall 1. Ins. by Act 38 of 2002 , s. 59 (w.e.f. 20 -5-2003). 61 (a) affect a condition in a contract by which a person is prohibited from selling goods other than those of a particular person; (b) validate a contract which, but for this section, would be invalid; (c) affect a condition in a contract for the lease of, or licence to use, a patented article, by which the lessor or licensor reserves to himself or his nominee the right to supply such new parts of the patented article as may be required or to put or keep i t in repair. 1* * * * * 141. Determination of certain contracts. (1) Any contract for the sale or lease of a patented article or for licence to manufacture, use or work a patented article or process, or relating to a ny such sale, lease or licence 2*** may at any time after the patent or all the patents by which the article or process was protected at the time of the making of the contract has or have ceased to be in force , and notwithstanding anything to the contrary in the contract or in any other contract, be determined by the purchaser, lessee, or licensee, as the case may be, of the patent on giving three months notice in writing to the other party. (2) The provisions of this section shall be without prejudice to any right of determining a contr act exercisable apart from this section. 142. Fees. (1) There shall be paid in respect of the grant of patents and applications therefor, and in respect of other matters in relation to the grant of patents under this Act, such fees as may be prescr ibed by the Central Government. (2) Where a fee is payable in respect of the doing of an act by the Controller, the Controller shall not do that act until the fee has been paid. 3[(3) Where a fee is payable in respect of the filing of a document at the patent office, the fee shall be paid along with the document or within the prescribed time and the document shall be deemed not to have been filed at the office if the fee has not been paid within such time.] (4) Where a principal patent is granted later than two years from the date of filing of 4[the application] , the fees which have become due in the meantime may be paid within a term of three months from the date of the recording of the patent in the register 5[or within the extended period not later than nine months from the date of recording] . 6[143. Restrictions upon publication of specification. Subject to the provisions of Chapter VII, an application for a pat ent, and any specification file in pursuance thereof, shall not, except with the consent of the applicant, be published by the Controller before the expiration of the period prescribed under sub-section ( 1) of section 11A or before the same is open to pu blic inspection in pursuance of sub-section ( 3) of section 11A or section 43.] 144. Reports of Examiners to be confidential. The reports of examiners to the Controller under this Act shall not be open to public inspection or be published by the Controller; and such reports shall not be liable to production or inspection in any legal proceeding unless the court certifies that the production or inspection is desirable in the interests of justice, and ought to be allowed. 7[145. Publication of official journal .The Controller shall publish periodically an official journal which shall contain such information as may be required to be published by or under the provisions of this Act or any rule made thereunder.] 146. Power of Controller to call for information from patent ees.(1) The C ontroller may, at any time during the continuance of the patent, by notice in writing, require a patentee or a licensee, exclusive or otherwise, to furnish to him within two months from the date of such notice or within such further time 1. Sub -section ( 5) omitted by Act 38 of 2002, s. 59 (w.e.f. 20 -5-2003). 2. The words whether made before or after the commencement of this Act, omitted by s. 60, ibid. (w.e.f. 20 -5-2003). 3. Subs. by s. 61, ibid., for sub -section ( 3) (w.e.f. 20 -5-2003). 4. Subs. by Act 15 of 2005, s. 71, for the complete specification (w.e.f. 1 -1-2005). 5. Ins. by Act 38 of 2002, s. 61 (w.e.f. 20 -5-2003). 6. Subs. by Act 15 of 200 5, s. 72, for section 143 (w.e.f. 1 -1-2005). 7. Subs. by Act 15 of 2005 , s. 73 , for section 145 (w.e.f. 1 -1-2005). 62 as the Controller may allow, such information or such periodical statements as to the extent to which the patented invention has been commercially worked in India as may be specified in the notice. (2) Without prejudice to the provisions of sub -section ( 1), every patentee a nd every licensee (whether exclusive or otherwise) shall furnish in such manner and form and at such intervals (not being less than six months) as may be prescribed statements as to the extent to which the patented invention has been worked on a commercial scale in India. (3) The Controller may publish the information received by him under sub -section ( 1) or sub-section ( 2) in such manner as may be prescribed. 147. Evidence of entries, documents, etc. (1) A certificate purporting t o be signed by the Controller as to any entry, matter or thing which he is authorised by this Act or any rules made thereunder to make or do, shall be prima facie evidence of the entry having been made and of the contents thereof and of the matter or thing having been done or omitted to be done. (2) A copy of any entry in any register or of any document kept in the patent office or of any patent, or an extract from any such register or document, purporting to be certified by the Controller and sealed with the seal of the patent office shall be admitted in evidence in all courts, and in all proceedings, without further proof or production of the original. (3) The Controller or any other officer of the patent office shall not, in any legal proceedings to whic h he is not a party, be compellable to produce the register or any other document in his custody, the contents of which can be proved by the production of a certified copy issued under this Act or to appear as a witness to prove the matters therein recorde d unless by order of the court made for special causes. 148. Declaration by infant, lunatic, etc. (1) If any person is, by reason of minority, lunacy or other disability, incapable of making any statement or doing anything required or permitted by or under this Act, the lawful guardian, committee or manager (if any) of the person subject to the disability, or if there be none, any person appointed by any court possessing jurisdiction in respect of his property, may make such statement or a statement as near ly corresponding thereto as circumstances permit, and do such things in the name and on behalf of the person subject to the disability. (2) An appointment may be made by the court for the purposes of this section upon the petition of any person acting on b ehalf of the person subject to the disability or of any other person interested in the making of the statement or the doing of the thing. 149. Service of notices, etc. by post. Any notice required or authorised to be given by or under this Act, and any app lication or other document so authorised or required to be made or filed, may b e given, made or filed by post. 150. Security for costs. If any party by whom notice of any opposition is given under this Act or by whom application is made to the Controller f or the grant of a licence under a patent neither resides nor carries on business in India, the Controller may require him to give security for the costs of the proceedings, and in default of such security being given may treat the opposition or application as abandoned. 151. Transmission of orders of courts to Controller. (1) Every order of 1[the High Court 2***] on a petition for revocation, including orders granting certificates of validity of any claim, shall be transmitted by 1[the High Court 2***] to the Controller who shall cause an entry thereof and reference thereto to be made in the register. (2) Where in any suit for infringement of a patent or in any suit under section 106 the validity of any claim or a specification is contested and that claim is found by the court to be valid or not valid, as the case may be, the court shall transmit a copy of its judgment and decree to the Controller who shall on receipt thereof cause an entry in relation to such proceeding to be made in the prescribed manner in a supplemental record. 1. Subs. by Act 15 of 2005, s. 74, for the High Court (w.e.f. 2 -4-2007). 2. The words or the Appellate Board omitted by Act 33 of 2021 , s. 13 (w.e.f. 4 -4-2021). 63 (3) The provisions of sub -sections ( 1) and ( 2) shall also apply to the court to which appeals are preferred against decisions of 1[the court s] referred to in those sub -sections. 152. [Transmission of copies of specification, etc., and inspection thereof .]Omitted by The Patents (Amendment) Act, 2005 (15 of 2005), s. 75 (w.e.f. 1-1-2005). 153. Information relating to Patents. A person making a request to the Controller in the prescribed manner for information relating to any such matters as may be prescribed as respects any patent specified in the request or as respects any application for a patent so specified shall be entitled, subject to the payment of the prescribed fee, to have information supplied to him accordingly. 154. Los s or destruction of Patents. If a patent is lost or destroyed, or its non -production is accounted for to the satisfaction of the Controller, the Controller may at any time, on application made in the prescribed manner and on payment of the prescribed fee, cause a duplicate thereof to be sealed and delivered to the applicant. 155. Reports of Controller to be placed before Parliament. The Central Government shall cause to be placed before both Houses of Parliament once a year a report respecting the executio n of this Act by or under the Controller. 156. Patent to bind Government. Subject to the other provisions contained in this Act, a patent shall have to all intents the like effect as against Government as it has against any person. 157. Right of Government to sell or use forfeited articles. Nothing in this Act shall affect the power of the Government or of any person deriving title directly or indirectly from the Government to sell or use any articles forfeited under any law for the time being in force. 2[157A. Protection of security of India .Notwithstanding anything contained in this Ac t, the Central Government shall (a) not disclose any information relating to any patentable invention or any application relating to the grant of patent under this Act, which it considers prejudicial to the interest of the security of India; (b) take any action including the revocation of any patent which it considers necessary in the interest of the security of India by issue of a notification in the Official Gazette to that effect. Explanation . For the purposes of this section, the expression security of India include any action necessary for the security of India which - (i) relates to fissionable materials or the materials from which they are derived; or (ii) relates to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment; or (iii) is taken in time of war or other emergency in international relations.] 158. Power of High Courts to make rules. The High Court may make rules consistent with this Act as to the conduct and procedure in respect of all proceedings before it under this Act. 159. Power of Central Government to make rule s.(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, the Central Government may make rules to provide for all or an y of the following matters, namely: (i) the form and manner in which any application for a patent, any specifications or drawings and any other application or document may be filed in the patent office; 1. Subs. by Act 33 of 2021, s. 13, for the Appellate Board or the courts, as the case may be (w.e.f. 4 -4-2021). 2. Subs. by Act 38 of 2002, s. 63, for section 157A (w.e.f. 20 -5-2003). 64 1[(ia) the period which the Controller may allow for filing of statement and undertaking for in respect of applications under sub -section ( 1), the period within which the details relating to processing of applications may be filed before the Controller and the details to be furnished by the applicant to the Controller under sub -section ( 2) of section 8; (ib) the period within which a reference to the deposit of materials shall be made in the specification under sub -clause ( A) of clause ( ii) of the proviso to sub -section ( 4) of section 10; (ic) the period for which application for patent shall not be open to the public under sub-section ( 1) and the manner in which the applicant may make a request to the Controller to publish his application under sub section ( 2) of section 11A; (id) the manner of making the request for examination for an application for patent and the period within which such examination shall be made under sub -sections ( 1) and ( 3)

an application for patent and the period within which such examination shall be made under sub -sections ( 1) and ( 3) of section 11B; (ie) the manner in which an application for withdrawal of an applicat ion for grant of a patent shall be made and the period within which a request for examination from the date of revocation of secrecy directions shall be made under the proviso to sub -section ( 4) of section 11B .] (ii) the time within which any act or thing may be done under this Act, including the manner in which and the time within which any matter may be 2[published] under this Act; (iii) the fees which may be payable under this Act and the manner 3[and time] of pay ment of such fees; (iv) the matters in respect of which the examiner may make a report to the Controller; 4[(v) the manner in which and the period within which the Controlle r shall consider and dispose of a representation under sub -section ( 1) of section 2 5; (va) the period within which the Controller is required to dispose of an application under section 39 ;] (vi) the form and manner in which and the time within which any notice may be given un der this Act; (vii) the provisions which may be inserted in an order for restoration of a patent for the protection of persons who may have availed themselves of the subject -matter of the patent after the patent had ceased; (viii) the establishment of branch offices of the patent office and the regulati on generally of the business of the patent office , including its branch offices; (ix) the maintenance of the register of patents 3[and the safeguards to be observed in the maintenance of such register in computer floppies, diskettes or any other electronic form] and the matters to be entered therein; (x) the matters in respect of which the Controller shall have powers of a civil court; (xi) the time when and the manner in which the register and any other document open to inspection may be inspected under th is Act; (xii) the qualifications of, and the preparation of a roll of, scientific advisers for the purpose of section 115; 5* * * ** (xiii) the manner in which any compensation for acquisition by Governme nt of an invention may be paid; 1. Subs. by Act 15 of 2005, s. 76, for clauses ( ia) and ( ib) (w.e.f. 1 -1-2005). 2. Subs. by Act 15 of 2005, s. 76, for advertised (w.e.f. (1 -1-2005). 3. Ins. by Act 38 of 2002, s. 64 (w.e.f. 20 -5-2003). 4. Subs. by Act 15 of 2005, s. 76, for clause ( v) (w.e.f. 1 -1-2005). 5. Clauses ( xiia), (xiib) and ( xiic) omitted by Act 33 of 2021, s. 13 (w.e.f. 4 -4-2021). 65 (xiv) the manner in which the register of patent agents may be maintained 1[under sub -section ( 1) of section 125 and the safeguards to be observed in the maintenance of such register of patent agents on computer floppies, diskettes or any other electronic form under sub-section ( 2) of that section] the conduct of qualifying examinations for patent agents; and matters connected with their practice and conduct, including the taking of disciplinary proceedings against patent agents for misconduct; (xv) the regulation of the making, printing, publishing and selling of indexes to, and abridgments of, specifications and other documents in the patent office; and the inspection of indexes and abridgments and other documents; (xvi) any other matter which has to be or may be pr escribed. (3) The power to make rules under this section shall be subject to condition of the rules being made after previous publication s: 1[Provided that the Central Government may, if it is satisfied that the circumstances exist which render it practica lly not possible to comply with such condition of previous publication, dispense with such compliance .] 160. Rules to be placed before Parliament. Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parlia ment while it is in session for a total period of thirty days which may b e comprised in one session or 2[in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid] bot h 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 p reviously done under that rule. 161. [Special provisions with respect to certain applications deemed to have been refused under Act 2 of 1911 .]Omitted by The Patents (Amendment) Act, 2002 (38 of 2002), s. 46 ( w.e.f. 20-5-2003). 162. Repeal of Act 2 of 1911 in so far as it relates to patents and savings. (1) The Indian Patents and Designs Act, 1911, in so far as it relates to patents, is hereby repealed, that is to say, the said Act shall be amended in the manner specified in the Schedule. 3* * * * * (4) The mention of particular matters in this section shall not prejudice the general application of the General Clauses Act, 1897 (10 of 1 987), with respect to repeals. (5) Notwithstanding anything contained in this Act, any suit for infringement of a patent or any proceeding for revocation of a patent, pending in any court at the commencement of this Act, may be continued and disposed of, a s if this Act had not been passed. 163. [Amendment of Act 43 of 1958 ].Omitted by The Patents (Amendment) Act , 2005 (15 of 2005), s. 77 (w.e.f . 1-1-2005). 1. The proviso added by Act 15 of 2005, s. 76 (w.e.f. 1 -1-2005). 2. Subs. by Act 4 of 1986, s. 2 and the Schedule, for certain words (w.e.f. 15 -5-1986). 3. Sub -sections ( 2) and ( 3) omitted by s. 66, ibid. (w.e.f. 20 -5-2003). 66 THE SCHEDULE [See section 162] AMENDMENTS TO THE INDIAN PATENTS AND DESIGNS ACT, 1911 1. Long title Omit Inventions and . 2. Preamble Omit inventions and . 3. Section 1 In sub -section ( 1) omit Indian Patents and . 4. Section 2 (a) omit clause ( 1); (b) in clause ( 2) omit (as respects designs) ; (c) for clause ( 3), substitute (3) controller means the Controller General of Patents, Designs and Trade Marks appointed under sub -section ( 1) of section 4 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) ;; (d) in clause ( 5) for trade mark as defined in section 478 , substitute trade mark as defined in clause ( v) of sub -section ( 1) of section 2 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) .; (e) omit clause ( 6); (f) in clause 7, after sub -clause ( ee) insert, (f) in relation to the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, the High Court at Bombay; (g) in relation to the Union territory of Pondicherry, the High Court at Madras. ; (g) omit clauses ( 8), (10) and ( 11); (h) for clause ( 12), substitute (12) patent office means the patent office referred to in section 74 of the Patents Act, 1970 . 5. Omit Part I. 6. For section 5 1B, substitute 51B. Designs to bind Government. A registered design shall have to all intents the like effect as against Government as it has against any person and the provisions of Chapter XVII of the Patents Act, 1970, shall apply to registered designs as they apply to patents. 7. In section 54, for The provisions of this Act, substitute The provisions of the Patents Act, 1970 . 8. Omit sections 55 and 56. 9. Section 57 For sub -section ( 1), substitute (1) There shall be paid in respect of the registration of designs and applications therefor and in respect of other matte rs relating to designs under this Act such fees as may be prescribed by the Central Government. . 10. Omit section 59A. 11. Section 61 Omit sub -section ( 1). 67 12. For section 62, substitute 62. Power of Controller to correct clerical errors. The Controller may, on request in writing accompanied by the prescribed fee, correct any clerical error in the representation of a design or in the name or address of the proprietor of any design or in any other matter which is entered upon the register of designs. . 13. Section 63 (a) in sub -section ( 1), omit to a patent or and patent or ; (b) in sub -section ( 2), omit patent or and for patent s or designs, as the case may be, , substitute designs ,; (c) in sub -section ( 3), omit patent or wherever that expression occurs; (d) in sub -section ( 4), omit to a patent or . 14. Section 64 (a) in sub -section ( 1), omit patents or and omit the word either wherever it occurs; (b) in sub -section ( 5), omit clause ( a). 15. Omit section 66. 16. Section 67 Omit for a patent, or for amendment of an application or of a specification, or . 17. Section 69 In sub -section ( 1), omit "to grant a patent for an invention or . 18. Section 71A Omit or from patents, specifications and other .. 19. Omit section 72. 20. Omit sections 74A and 75. 21. Section 76 (a) in sub -section ( 1), omit other ; (b) in sub -section ( 2), in clause ( c), omit opponent . 22. Section 77 (a) in sub -section ( 1) (i) in clauses ( c) and ( d), omit specifications ; (ii) for clause ( e), substitute (e) providing for the inspection of documents in the patent office and for the manner in which they may be published; ; (iii) omit clause ( eee); (b) omit sub -section (2A). 23. Omit section 78. 24. For section 78A, substitute 78A. Reciprocal arrangement with United Kingdom a nd other Commonwealth countries (1) Any person who has applied for protection for any design in the United Kingdom or his legal representative or assignee shall, either alone or jointly with any other person, be entitle d to claim that the registration of the said design under this Act shall be in priority to other applicants and shall have the same date as the date of the application in the United Kingdom: Provided that (a) the application is made within six months from the application for protection in the United Kingdom; and (b) nothing in this section shall entitle the proprietor of the design to recover damages for infringements happening prior to the actual date on which the design is registered in India. 68 (2) The re gistration of a design shall not be invalidated by reason only of the exhibition or use of, or the publication of a description or representation of, the design in India during the period specified in this section as that within which the application may b e made. (3) The application for the registration of a design under this section must be made in the same manner as an ordinary application under this Act. (4) Where it is made to appear to the Central Government that the legislature of any such Commonwealt h country as may be notified by the Central Government in this behalf has made satisfactory provision for the protection of designs registered in India, the Central Government may, by notification in the Official Gazette, direct that the provisions of this section, with such variations or additions, if any, as may be set out in such notification, shall apply for the protection of designs registered in that Commonwealth country. . 25. Omit sections 78B, 78C, 7 8D and 78E. 26. Omit the Schedule.

THE WEALTH -TAX ACT, 1957 ACT NO. 27 OF 19571 [12th September , 1957.] An Act to provide for the levy of wealth -tax. BE it enacted by Parliament in the Eighth Year of t he Republic of India as follows : CHAPTER I PRELIMINARY 1. Short title, extent and commencement .(1) This Act may be called the Wealth -tax Act, 1957. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 1st day of April, 1957. 2. Definitions .In this Act, unless the context otherwise requires, 2* * * * * 3[(b) Appellate Tribunal means the Appellate Tribunal constituted under se ction 252 of the Income -tax Act ; (c) assessee means a person by whom wealth -tax or any other sum of money is payable under this Act, and includes (i) every person in respect of whom any proceeding under this Act has been taken for the determination of wealth -tax payable by him or by any other person or the amount of refund due to him or such other person; (ii) every person who is deemed to be an assessee under this Act; (iii) every person who is deemed to be an assessee in default under this Act; 4[(ca) Assessing Officer means the Deputy Commission er of Income -tax or the Assistant Commissioner or the Income -tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub -section ( 1) or sub -section ( 2) of section 120 or any other provision of the Income -tax Act which apply for the purposes of wealth -tax under section 8 of this Act and also the 5[Additional Commissioner or] 6[Additional Director or] Joint Commissioner who is directed under clause ( b) of sub -section ( 4) of the said section 120 to exercise or pe rform all or any of the powers and functions conferred on or assigned to the Assessing Officer under that Act;] 7[(cb)] assessment includes reassessment ; (d) assessment year means a period of twelve months commencing on the 1st day of April, every year ;] Subject to verification and confirmation by the Department. 1. This Act has been extended with modifications to Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry by Regulation 3 of 1963, s. 3( 1) and Schedule (w.e.f. 1 -4-1963). 2. Clause ( a) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). Earlier clause ( a) amended by Act 26 of 1988, s. 88 (w.e.f. 1 -4-1988) 3. Subs. by Act 46 of 1964, s. 2, for clauses ( b), (c) and ( d) (w.e.f. 1 -4-1965). 4. Subs. by Act 21 of 1998, s. 67, for clause ( ca) (w.e.f. 1 -10-1998). Earlier clause ( ca) was inserted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988) and amended by Act 26 of 1988, s. 88 (w.e.f. 1 -4-1988). 5. Ins. by Act 22 of 2007, s. 83 (w.r.e.f. 1 -6-1994). 6. Ins. by s. 83, ibid. (w.r.e.f. 1 -10-1996). 7. Clause ( ca) re-lettered as clause ( cb) thereo f by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). 8 1[(e) assets includes property of every description, movable or immovable, but does not include, (1) in relation to the assessment year commencing on the 1st day of April, 1969, or any earlier assessment year (i) agricultural land and growing crops, grass or standing trees on such land; (ii) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land: Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as a dwelling house o r a store -house or an out -house ; (iii) animals ; (iv) a right to any annuity in any case where the terms and conditions relating thereto preclude the commutation of any portio n thereof into a lump sum grant ; (v) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee; (2) in relation to the assessment year commencing on the 1st day of April, 1970, or any subsequent assessment year 2[but before the 1st day of April, 1993] (i) animals ; (ii) a right to 3[any annuity (not being an annuity purchased by the assessee or purchased by any oth er person in pursuance of a contract with the assessee)] in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant; (iii) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee :] 4[Provided that in relation to the assessment year commencing on the 1st day of April, 1981, 5[and the assessment year commencing on the 1st day of April, 1982], this sub -clause shall have effect subject to the modification that for item ( i) thereof, the following it em shall be substituted, namely : (i) (a) agricultural land other than land comprise d in any tea, coffee, rubber or cardamom plantation; (b) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land other than land comprised in any tea, coffee , rubber or cardamom plantation : Provided that the building is on or in the immediate vicinity of the la nd and is a building which the cultivator or the receiver of the rent or revenue by reason of his connection with the land requires as a dwelling -house o r a store -house or an out -house ; (c) animals : 1. Subs. by Act 14 of 1969, s. 24, for clause ( e) (w.e.f. 1 -4-1969). 2. Ins. by Act 18 of 1992, s. 89 (w.e.f. 1 -4-1993). 3. Subs. by Act 20 of 1974, s. 14, for any annuity (w.e.f. 1 -4-1975). 4. Subs. by Act 4 4 of 1980, s. 36, for Provided that (w.e.f. 1 -4-1981). 5. Subs. by Act 14 of 1982, s. 33, for or any subsequent assessment year (w.e.f. 1 -4-1983). 9 1[Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent assessment year, this sub -clause shall have effect subject to the modification that for item ( i) thereof, the following it em shall be substituted, namely : (i) (a) agricultural land and growi ng crops (including fruits on trees), grass or standing trees on such land ; (b) one building or one group of buildings owned or occupied by a cultivator of, or receiver of rent or re venue out of, agricultural land : Provided that such buildings or group of buildings is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as store -house or for keeping livestock; (c) animals :] 2[3[Provided also that]] in relation to the State of Jammu and Kashmir *, this sub-clause shall have effect subject to the modification that for the assets specified in 4[item ( i)] of this sub -clause, the assets specified in 5[items ( i) to ( iii)] of sub -clause (1) shall be substituted and the other provisions of this Act shall be construed accordingly;] 6[(ea) assets , in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means 7[(i) any building or land appurtenant thereto (hereinafter referred to as house ), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty -five kilometres fr om local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include (1) a house meant exclusively for residential purposes and which is allotted by a company to an em ployee or an officer or a director who is in whole -time employment, having a gross annual salary of less than 8[ten lakh rupees ]; (2) any house for residential or commercial purposes which forms part of stock -in-trade; (3) any house which the assessee may occupy for the purposes of any business or profession carried on by him; (4) any residential property that has been let -out for a minimum period of three hundred days in the previous year; (5) any property in the nature of com mercial establishments or complexes;] (ii) motor cars (other than those used by the assessee in the business of running them on hire or as stock -in-trade) ; 1. Ins. by Act 14 of 1982, s. 33 (w.e.f. 1 -4-1983). 2. Added by Act 19 of 1970, s. 26 (w.r.e.f. 1 -4-1969) 3. Subs. by Act 14 of 1982, s. 33, for Provided further that (w.e.f. 1 -4-1983). 4. Subs. by Act 20 of 1974, s. 14, for items ( i) to ( iii) (w.e.f. 1 -4-1975). 5. Subs. by s. 14, ibid., for items ( i) to ( v) (w.e.f. 1 -4-1975). 6. Ins. by Act 18 of 1992, s. 89 (w.e.f. 1 -4-1993). 7. Subs. by Act 21 of 1998, s. 67, for sub -clause ( i) (w.e.f. 1 -4-1999). Earlier sub -clause ( i) was substituted by Act 33 of 1996, s. 56 (w.e.f 1 -4-1997). 8. Subs. by Act 23 of 2012, s. 115, for five lakh rupees (w.e.f. 1 -4-2013 ). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh . 10 (iii) jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals : Provided that where any of the said assets is used by the assessee as stock -in-trade, such asset shall be deemed as excluded from the assets specified in this sub -clause; (iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes); (v) urban land ; (vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account. Explanation 1[1].For the purposes of this clause, (a) jewellery includes (i) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi - precious stones, and whether or not worked or sewn into any wearing apparel; (ii) precious or semi -precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any wearing apparel; 2[(b) urban land means land situate (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or (ii) in any area wi thin the distance, measured aerially, (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in sub -clause ( i) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in sub -clause ( i) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in sub -clause ( i) and which has a population of more than ten lakh, but does not include land classified as agricultural land in the records of the Government and used for agricultural purposes or land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated or the land occupied by any building which has been constructed with the approval of t he appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition

he appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him or any land held by the assessee as stock -in-trade for a period of ten years from the date of its acquisition by him. 1. Explanation renumbered as Explanation 1 thereof by Act 27 of 1999, s. 91 ( w.e.f. 1 -4-2000). 2. Subs. by Act 17 of 2013, s. 61, for clause ( b) (w.e.f. 1 -4-2014). 11 Explanation .For the purposes of clause ( b) of Explanation 1, population means the population according to the last preceding census of which the relevant figures have been published before the date of valuation. ]] 1[Explanation 2.For the removal of doubts, it is hereby declared that jewellery does not include the Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government;] (f) Board means the 2[Central Board of Direct Taxes constituted und er the Central Boards of Revenue Act, 1963 (54 of 1963)] ; 3* * * * * 4[(h) company shall have the meaning assigned to it in clause ( 17) of section 2 of the Income -tax Act ;] 5[(ha) co-operative society means a co -operative society registered under the Co -operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co -operative societies;] 6* * * * * (i) executor means an executor or administrator of the estate of a deceased person; 7[(ia) High Court , in relation to the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, means the High Court at Bombay ;] 8[(j) Income -tax Act means the In come -tax Act, 1961 (43 of 1961) ;] 9* * * * * 10[(ka) India means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters , Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976), and the air space above its territory and territorial waters;] 11* * * * * 12[(lb) legal representative has the meaning assigned to it in clause ( 11) of se ction 2 of the Code of Ci vil Procedure, 1908 (5 of 1908) ;] 1. Ins. by Act 27 of 1999, s. 91 (w.e.f. 1 -4-2000). 2. Subs. by Act 54 of 1963, s. 5, for Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (4 of 1924) (w.e.f. 1 -1-1964). 3. Clauses ( g) and ( gg) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). 4. Subs. by s. 128, ibid., for clause ( h) (w.e.f. 1 -4-1989) 5. Ins. by Act 16 of 1972, s. 44 (w.r.e.f. 1 -4-1957). 6. Clause ( hb) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). Earlier clause ( hb) inserted by Act 46 of 1964, s. 2 (w.e.f. 1 -4-1965) and later amended by Act 16 of 1972, s. 44 (w.e.f. 1 -4-1965). 7. Ins. by the Taxation Laws (Ext ension to Union Territories) Regulation, 1963 (3 of 1963) (w.e.f. 1 -4-1963). 8. Subs. by Act 46 of 1964, s. 2, for clause ( j) (w.e.f. 1 -4-1965). 9. Clause ( k) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). 10. Subs. by Act 22 of 2007, s. 83, for clau se (ka) (w.r.e.f. 25 -8-1976). Earlier clause ( ka) inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963) (w.e.f. 1 -4-1963). 11. Clauses ( l) and ( la) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1988). Earlier clause ( la) inserted by Act 46 of 1964, s. 2 (w.e.f. 1 -4-1965). 12. Ins. by Act 46 of 1964, s. 2 (w.e.f. 1 -4-1965). 12 1[(lc) maximum marginal rate means the rate of wealth -tax applicable in relation to the highest slab of wealth in the case of an individual as sp ecified in Part I of Schedule I ;] 2[(ld) National Tax Tribunal means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005 (49 of 2005) ;] (m) net wealth means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on tha t date under this Act, is in excess of the aggregate value of all the debts owed by the assessee 3[on the valuation date which have been incurred in relation to the said assets ;] (n) prescribed means prescrib ed by rules made under this Act ; (o) principa l officer , used with reference to a company, means the secretary, manager, managing agent or managing director of the company, and includes any person connected with the management of the affairs of the company upon whom the 4[Assessing Officer] has serve d a notice of his intention of treating him a s the principal officer thereof ; 5[(oa) public servant has the same meaning as in section 21 of the Indian Penal Code (45 of 1860); 6[(oaa) registered valuer means a person registered as a valuer under section 34AB;] (ob) regular assessment means the assessment made under 7[sub-section ( 3) or sub -section ( 5) of section 16 ];] (p) Ruler means a Ruler as defined in clause ( 22) of article 366 of the Constitution ; (q) valuation date , in relation to any year for which an assessment is to be made under this Act, means the last day of the previous year as defined in 8[section 3] of the Income -tax Act, if an assessment were to be made under that Act for that year: 9[Provided that 10* * * * * (ii) in the case of a person who is not an assessee within the meaning of the Income -tax Act, the valuation date for the purposes of this Act shall be the 31st day of March immediatel y preceding the assessment year ; (iii) where an assessment is made in purs uance of section 19A, the valuation date shall be the same valuation date as would have been adopted in respect of the net wealth of the deceased if he were alive;] 1. Ins. by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1989). 2. Shall stand inserted (date to be notified) by Act 49 of 2005, s. 30 and the Schedule. This amen dment has been struck down by the Supreme Courts Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India. 3. Subs. by Act 18 of 1992, s. 89, for certain words (w.e.f. 1 -4-1993). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 5. Ins. by Act 46 of 1964, s. 2 (w.e.f. 1 -4-1965). 6. Ins. by Act 45 of 1972, s. 7 (w.e.f. 15 -11-1972). 7. Subs. by Act 12 of 1990, s. 51, for section 16 (w.r.e.f. 1 -4-1989). 8. Subs. by Act 46 of 1964, s. 2, for clause ( 11) of section 2 (w.e.f. 1 -4-1965). 9. Subs. by s. 2, ibid., for the proviso (w.e.f. 1 -4-1965). 10. Clause ( i) omitted by Act 4 of 1988, s. 128 (w.e.f. 1 -4-1989). 13 1[(r) Valuation Officer means a person appointed as a Valuation Officer under section 12A, and includes a Regional Valuation Officer, a District Valuation Officer and an Assistant Valuation Officer;] 2[(s) the expressions Chief Commissioner, Director -General, Commissioner, Commissioner (Appeals), Director, Additional Director of Income -tax, Additional Commissioner of Income -tax, Joint Director, Joint Commissioner of Income -tax, Deputy Director, Deputy Commissioner, Assistant Commissioner, Assistant Director, Income -tax Officer, Inspector of Income -tax and Tax Recovery Officer shall have th e meanings respectively assigned to them under section 2 of the Income -tax Act.] CHAPTER II CHARGE OF WEALTH -TAX AND ASSETS SUBJECT TO SUCH CHARGE 3. Charge of wealth -tax .3[(1)] 4[Subject to the other provisions contained in this Act ], there shall be charged for every 5[assessment year] commencing on and from the first day of April, 1957 6[but before the first day of April, 1993], a tax (hereinafter referred to as wealth -tax) in respect of the net wealth on the corresponding valuation date of every ind ividual, Hindu undivided family and company 7[at the rate or rates specified in Schedule I]. 6[(2) Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the 1st day of April, 1993, 8[but before the 1st day of April, 2016 ], wealth - tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company, at the rate of one per cent . of the amount by which the net wealth exceeds fifteen lakh rupees:] 9[Provided that in the case of every assessment year commencing on and from the 1st day of April, 2010, the provisions of this section shall have effect as if for the words fifteen lakh rupees , the words thirty lakh rupees had been substituted.] 4. Net wealth to include certain assets .(1) 10[In computing the net wealth (a) of an individual, there shall be included, as belonging to that individual, the value of assets which on the valuation date are held ] 11[(i) by the spouse of such individual to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart, or 1. Subs. by Act 45 of 1972, s. 7, for clause ( r) (w.e.f. 15 -11-1972). 2. Subs. by Act 21 of 1998, s. 67, for clause ( s) (w.e.f. 1 -10-1998). 3. Section 3 renumbered as sub -section ( 1) thereof by Act 18 of 1992, s. 90 (w.e.f. 1 -4-1993). 4. Amendment introduced by the Direct Tax Laws (Amendment) Act, 1987 (w.e.f. 1 -4-1989), has become redundant in view of omission of provision relating to additional wealth -tax. 5. Subs. by Act 46 of 1964, s. 3, for financial year (w.e.f. 1 -4-1965). 6. Ins. by Act 18 of 1992, s. 90 (w.e.f. 1 -4-1993). 7. Subs. by Act 66 of 1976, s. 27, for at the rate or rates specified in the Schedule (w.e.f. 1 -4-1977). 8. Ins. by Act 20 of 2015, s. 81 (w.e.f. 1 -4-2016). 9. Ins. by Act 33 of 2009, s. 83 (w.e.f. 1 -4-2010). 10. Subs. by Act 3 of 1989, s. 59, for certain words (w.e.f. 1 -4-1989). Earlier it was amended by Act 46 o f 1964, s. 4 (w.e.f. 1 -4-1965). 11. Subs. by Act 46 of 1964, s. 4, for sub -clauses ( i), (ii) and ( iii) (w.e.f. 1 -4-1965). 14 (ii) by a minor child, not being 1[a minor child suffering

. 1 -4-1965). 14 (ii) by a minor child, not being 1[a minor child suffering from any disability of the nature specified in section 80U of the Income -tax Act or] a married daughter, of such individual, 2*** or (iii) by a person or association of persons to whom such assets have been transferred by the individual 3[, directly or indirectly] otherwise than for adequate consideration for the immediate or deferred benefit of the individual, his or her spouse 4***, or] (iv) by a person or association of persons to whom such assets have bee n transferred by the individual otherwise than under an irrevocable transfer, 3[or] 3[(v) by the son s wife, 5*** of such individual, to whom such assets have been transferred by the individual, directly or indirectly, on or after the 1st day of June, 1973, otherwise than for adequate consideration,] 6[or] 6[(vi) by a person or association of persons to whom such assets have been transferred by the individual, directly or indirectly, on or after the 1st day of June, 1973, otherwise than for adequate con sideration for the immediate or deferred benefit of the son s wife, 5*** of such individual or both,] whether the assets referred to in any of the sub -clauses aforesaid are held in the form in which they were transferred or otherwise: 7[Provided that wher e the transfer of such assets or any part thereof is either chargeable to gift -tax under the Gift -tax Act, 1958 (18 of 1958), or is not chargeable under section 5 of that Act, for any assessment year commencing 8[after the 31st day of March, 1964, but before the 1st day of April, 1972,] the value of such assets or part thereof, as the case may be, shall not be included in computing the net wealth of the individual:] 9[Provided further that nothing contained in sub -clause ( ii) shall apply in respect of s uch assets as have been acquired by the minor child out of his income referred to in the proviso to sub -section ( 1A) of section 64 of the Income -tax Act and which are held by him on the valuation date : Provided also that where the assets held by a minor c hild are to be included in computing the net wealth of an individual, such assets shall be included, (a) where the marriage of his parents subsists, in the net wealth of that parent whose net wealth (excluding the assets of the minor child so includible under this sub -section) is greater; or (b) where the marriage of his parents does not subsist, in the net wealth of that parent who maintains the minor child in the previous year as defined in section 3 of the Income -tax Act, and where any such assets are once included in the net wealth of either parent, any such assets shall not be included in the net wealth of the other parent in any succeeding year unless the Assessing Officer is satisfied, after giving that parent an opportunity of being heard , that it is necessary so to do ;] 1. Ins. by Act 32 of 1994, s. 51 (w.e.f. 1 -4-1995). 2. The words to whom such assets have been transferred by t he individual, directly or indirectly, otherwise than for adequate consideration, omitted by Act 18 of 1992, s. 91 (w.e.f. 1 -4-1993). 3. Ins. by Act 41 of 1975, s. 82 (w.e.f. 1 -4-1976). 4. The words or minor child (not being a married daughter) or both omitted by Act 18 of 1992, s. 91 (w.e.f. 1 -4-1993). 5. The words or the sons minor child, omitted by s. 91, ibid. (w.e.f. 1 -4-1993). 6. Ins. by Act 67 of 1984, s. 54 (w.e.f. 1 -4-1985). 7. Ins. by Act 46 of 1964, s. 4 (w.e.f. 1 -4-1965). 8. Subs. by Act 32 of 1971, s. 31, for after the 31st day of March, 1964 (w.e.f. 1 -4-1972). 9. Ins. by Act 18 of 1992, s. 91 (w.e.f. 1 -4-1993). 15 1[(b) of an assessee who is a partner in a firm or a member of an association of persons (not being a co-operative housing society), there shall be included, as belonging to that assessee, the value of his 2[interest in the assets of the firm] or association determined in the manner laid down in Schedule III: 3[Provided that where a minor is admitted to the benefits of partnership in a firm, the value of the interest of such minor in the firm, determined in the manner specified above, shall be included in the net wealth of the parent of the minor, so far as may be, in accordance with the provisions of the third proviso to clause ( a).]] 4[(1A) Where, in the case of an individual being a member of a Hindu undivided family, any property having been the separate property of the individual has, at any time after the 31st day of December, 1969, been converted by the individual into property belonging to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it 5[into the common stock of the family or been transferred by the individual, directly or indirectly, to the family oth erwise than for adequate consideration (the property so converted or transferred being hereinafter referred to as the converted property)], then, notwithstanding anything contained in any other provision of this Act or in any other law for the time being i n force, for the purpose of computing the net wealth of the individual under this Act for any assessment year commencing on or after the 1st day of April, 1972, (a) the individual shall be deemed to have transferred the converted property, through the fam ily, to the members of the family for being held by them jointly ; (b) the converted property or any part thereof 6*** shall be deemed to be assets belonging to the individual and not to the family ; 7[(c) where the converted property has been the subject -matter of a partition (whether partial or total) amongst the members of the family, the converted property or any part thereof which is received by the spouse 8*** of the individual on such partition shall be deemed to be assets transferred indirectly by t he individual to the spouse 8*** and the provisions of sub -section ( 1) shall, so far as may be, apply accordingly :] Provided that the property referred to in clause ( b) or clause ( c) shall, on being included in the net wealth of the individual, be excluded from the net wealth of the family or, as the case may be, the spouse 8*** of the individual.] 9* * * * * 10* * * * * (4) Nothing contained in clause ( a) of sub -section ( 1) shall apply to any such transfer as is referred to therein made by an individual before the 1st day of April, 1956, and the value of any assets so transferred shall not be included in the computation of his net wealth. 1. Subs. by Act 3 of 1989, s. 59, for clause ( b) (w.e.f. 1 -4-1989). Earlier it was amended by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 2. Subs. by Act 18 of 1992, s. 91, for interest in the firm (w.e.f. 1 -4-1993). 3. Subs. by s. 91, ibid., for the proviso (w.e.f. 1 -4-1993). 4. Ins. by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 5. Subs. by Act 21 of 1979 , s. 23, for into the common stock of the family (such property being hereinafter referred to as the converted property) (w.e.f. 1 -4-1980). 6. The words , in so far as it is attributable to the interest of the individual in the property of the family, omitted by Act 41 of 1975, s. 82 (w.e.f. 1 -4-1976). 7. Subs. by s. 82, ibid., for clause ( c) (w.e.f. 1 -4-1976). 8. The words or minor child omitted by Act 18 of 1992, s. 91 (w.e.f. 1 -4-1993). 9. Sub -section ( 2) omitted by Act 3 o f 1989, s. 59 (w.e.f. 1 -4-1989). 10. Sub -section ( 3) omitted by Act 18 of 1992, s. 91 (w.e.f. 1 -4-1993). Earlier it was amended by Act 21 of 1979, s. 23 (w.e.f. 1 -4-1980) and Act 25 of 1975, s. 26 (w.e.f. 1 -4-1975), 16 1[(4A) Notwithstanding anything in sub-section (4), nothing contained in clause ( a) of sub -section ( 1) shall apply to any such transfer as is referred to therein made before the 1st day of April, 1963, by an individual who but for the extension of this Act to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, would not have been an assessee, and the value of any assets so transferred shall not be included in the computation of his net wealth.] (5) The value of any assets transferred under an irrevocable tra nsfer shall be liable to be included in computing the net wealth of the transferor as and when the power to revoke arises to him. 2[(5A) Where a gift of money from one person to another is made by means of entries in the books of account maintained by the person making the gift or by an individual or a Hindu undivided family or a firm or an association of persons or body of individuals with whom or which he has business or other relationship, the value of such gift shall be liable to be included in computin g the net wealth of the person making the gift unless he proves to the satisfaction of the 3[Assessing Officer] that the money has actually been delivered to the other person at the time the entries were made.] 4[(6) For the purposes of this Act, the holde r of an impartible estate shall be deemed to be the individual owner of all the prop erties comprised in the estate. 5[(7) Where the assessee is a member of a co -operative society, company or other association of persons and a building or part thereof is al lotted or leased to him under a house building scheme of the society, company or association, as the case may be, the assessee shall, notwithstanding anything contained in this Act or any other law for the time being in force, be deemed to be the owner of such building or part and the value of such building or part, shall be included in computing the net wealth of the assessee; and, in determining the value of such building or part, the value of any outstanding instalments of the amount payable under such s cheme by the assessee to the society, company or association towards the cost of such building or part and the land appurtenant thereto shall, whether the amount so payable is described as such or in any other manner in such scheme, be deducted as a debt owed by him in relation to such building or part. (8) A person (a) who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882); (b) who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof by virtue of any such transaction as is referred to in clause ( f) of section 269UA of the Income -tax Act, 1961 (43 of 1961), shall be deemed to be the owner of that building or part thereof and the value of such building or part shall be included in computing the net wealth of such person.] Explanation. For the purpose s of this section, (a) the expression transfer includes any disposition, settlement, trust, covenant, agreement or arrangement; 6*** 2[(aa) the expression child includes a step -child and an adopted child;] 1. Ins. by The Taxat ion Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963), s. 3 and the Schedule (w.e.f. 1 -4-1963). 2. Ins. by Act 41 of 1975, s. 82 (w.e.f. 1 -4-1976). 3. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w. e.f. 1 -4-1988). 4. Subs. by Act 46 of 1964, s. 4, for the Explanation (w.e.f. 1 -4-1965). 5. Subs. by Act 33 of 1996, s. 57, for sub -section ( 7) (w.e.f. 1 -4-1997). Earlier sub -section ( 7) was inserted by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 6. The word and omitted by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 17 (b) the expression irrevocable transfer includes a transfer of assets which, by the terms of the instrument effecting it, is not revocable for a period exceeding six years or during the lifetime of the transferee, and under which the transferor derives no direct or indirect benefit, but does not in clude a transfer of assets if such instrument (i) contains any provision for the retransfer, directly or indirectly, of the whole or any part of the assets or income therefrom to the transferor, or (ii) in any way gives the transferor a right

or any part of the assets or income therefrom to the transferor, or (ii) in any way gives the transferor a right to reassume power, directly or indirectly, over the whole or any part of the assets or income therefrom ;] 1[and] 2[(c) the expression property includes any interest in any property, mov able or immovable, the proceeds of sale thereof and any money or investment for the time being representing the proceeds of sale thereof and where the property is converted into any other property by any method, such other property 3***. 4* * * * *] 5. Exemptions in respect of certain assets. 5[6*** Wealth -tax shall not be payable by an assessee in respect of the following assets], and such assets shall not be included in the net wealth of the assessee (i) any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India : 7[Provided that nothing contained in this clause shall apply to any property forming part of any business, not being a busines s referred to in clause ( a) or clause ( b) of sub -section (4A) of section 11 of the Income -tax Act in respect of which separate books of account are maintained or a business carried on by an institution, fund or trust referred to in 8*** clause ( 23B) or cla use ( 23C) of section 10 of that Act;] (ii) the interest of the assessee in the coparcenary property of any Hindu undivided family of which he is a member ; (iii) 9[any one building in the occupation of a Ruler, being a building which immediately before the commencement of the Constitution (Twenty -sixth Amendment) Act, 1971, was his official residence by virtue of a declaration by the Central Government] under paragraph 13 of the Merged States (Taxation Concessions) Order, 1949, or paragraph 15 of the Part B States (Taxation Concessions) Order, 1950; 10* * * * * 1. Ins. by Act 41 of 1975, s. 82 (w.e.f. 1 -4-1976). 2. Ins. by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 3. The word and omitted by Act 41 of 1975, s. 82 (w.e.f. 1 -4-1976). 4. Clause ( d) omitted by s. 82, ibid., (w.e.f. 1 -4-1976). Earlier clause ( d) inserted by Act 32 of 1971, s. 31 (w.e.f. 1 -4-1972). 5. The brackets, figures, words and letters, ( 1) Subject to the provisions of sub -section ( 1A), omitted by Act 18 of 1992, s. 92 (w.e.f. 1-4-1993). 6. Subs. by Act 19 of 1970, s. 26, for Wealth -tax shall not be payable by an assessee in respect of the following assets (w.e.f. 1 -4-1971). 7. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier the proviso was added b y Act 32 of 1985, s. 37 (w.e.f. 1 -4-1986) which was later substituted by Act 4 of 1988, s. 60 (w.e.f. 1 -4-1988). 8. The words brackets, figures and letters clause ( 22) or clause ( 22A) or omitted by Act 21 of 1998, s. 68 (w.e.f. 1 -4-1999). 9. Subs. by Act 54 of 1972, s. 5, for any one building in the occupation of a Ruler declared by the Central Government as his official residence (w.e.f. 28 -12-1971). 10. Clauses ( iv) to ( viii) omitted by Act 18 of 1992, s. 92 (w.e.f. 1 -4-1993). 18 1[(iv)] jewellery in the possession of any Ruler, not being his personal property, which has been recognised before the commencement of this Act, by the Central Government as his heirloom or, where no such recognition exists, which the Board may, subject to any rules that may be made by the Central Government in this behalf, recognise as his heirloom at the time of his first assessme nt to wealth -tax under this Act : 2[Provided that in the case of jewellery recognised by the Central Government as aforesaid, such recognition shall be subject to the following conditio ns, namely : (i) that the jewellery shall be perm anently kept in India and shall not be removed outside India except for a purpose and period approved by the Board; (ii) that reasonable steps shall be taken for keeping the jewellery substantially in its original shape; (iii) that reasonable facilities sh all be allowed to any officer of Government authorised by the Board in this behalf to examine the jewellery as and when necessary; and (iv) that if any of the conditions hereinbefore specified is not being duly fulfilled, the Board may, for reasons to be r ecorded in writing, withdraw the recognition retrospectively with effect from the date of commencement of clause ( b) of section 5 of the Rulers of Indian States (Abolition of Privileges) Act, 1972 (54 of 1972) , and in such a case, wealth -tax shall become payable by the Ruler for all the assessment years after such commencement for which the jewellery was exempted on account of the recognition. Explanation. For the purposes of clause ( iv) of the foregoing proviso, the fair market value of any jewellery on the date of the withdrawal of the recognition in respect thereof shall be deemed to be the fair market value of such jewellery on each successive valuation date relevant for the assessment years referred to in the said proviso: Provided further that th e aggregate amount of wealth -tax payable in respect of any jewellery under clause ( iv) of the foregoing proviso for all the assessment years referred to therein shall not in any case exceed fifty per cent . of its fair market value on the valuation date rel evant for the assessment year in which recognition was withdrawn;] 3* * * * * 4[5[(v)] in the case of an assessee, being a person of Indian origin 6[or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys 7[within one year immediately preceding the date of his return and at any time thereafter] : Provided that this exemption shall apply only for a period of seven successive assessment years commencing with th e assessment year next following the date on which such person returned to India. 1. Clause ( xiv) renumbe red as clause ( iv) thereof by Act 18 of 1992, s. 92 (w.e.f. 1 -4-1993). 2. Added by Act 54 of 1972, s. 5 (w.e.f. 9 -9-1972). 3. Clauses ( xv) to ( xxxii ) omitted by Act 18 of 1992, s. 92 (w.e.f. 1 -4-1993). 4. Clause ( xxxiii ) renumbered as clause ( v) thereof by s. 92, ibid. (w.e.f. 1 -4-1993). 5. Ins. by Act 66 of 1976, s. 27 (w.e.f. 1 -4-1977). 6. Ins. by Act 67 of 1984, s. 54 (w.r.e.f. 1 -4-1977). 7. Ins. by Act 23 of 1986, s. 40 (w.e.f. 1 -4-1987). 19 Explanation 1[1].A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand -parents, was born in undivided India.] 2[Explanation 2.For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non -resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made ther eunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;] 3[(vi) one house or part of a house or a plot of land belonging to an individ ual or a Hindu undivided family : Provided that wealth -tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred square metres or less.] 4* * * * * 5* * * * * 6. Exclusion of assets and debts outside India. 6[In computing the net wealth of an individual who is not a citizen of India or of an individual] or a Hindu undivided family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valua tion date (i) the value of the assets and debts located outside India; and (ii) the value of the assets in India represented by any loans or debts owing to the assessee in any case where the interest, if any, payable on such loans or debts is not to be in cluded in the total income of the assessee under 7[section 10] of the Income -tax Act ; shall not be taken into account. Explanation 1.An individual or a Hindu undivided family shall be deemed to be not resident in India or resident but not ordinarily resid ent in India during the year ending on the valuation date if in respect of that year the individual or the Hindu undivided family, as the case may be, is not resident in India or resident but not ordinarily resident in India within the meaning of the Incom e-tax Act. 8[Explanation 1A.Where in the case of an individual the value of an asset in India is represented by any debt owing to him, being any moneys to his credit in a Non -resident (External) Account, the interest payable on which is not to be included in his total income under 9[sub-clause ( ii) of clause ( 4)] of section 10 of the Income -tax Act, the provisions of this section shall, in relation to such asset, apply subject to the modification that the reference in this section to an individual not resi dent in India shall be construed as a reference to a person resident outside India as defined in clause ( q) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973). ] 1. The Explanation renumbered as Explanation 1 thereof by Act 23 of 1986, s. 40 (w.r.e.f. 1 -4-1977). 2. Ins. by s. 40, ibid. (w.r.e.f. 1 -4-1977). 3. Subs. by Act 21 of 1998, s. 68, for clause ( vi) (w.e.f.. 1 -4-1998). 4. Clauses ( xxxiv ) omitted by Act 18 of 1992, s. 92 (w.e.f. 1 -4-1993). Earlier it was inserted by Act 66 of 1976, s. 27 (w.e.f. 1 -4-1976). 5. Sub -sections ( 1A) to ( 4) omitted by s. 92, ibid. (w.e.f. 1 -4-1993). 6. Subs. by Act 11 of 1958, s. 14, for In computing the net wealth of an individual (w.r.e.f. 1 -4-1957). 7. Subs. by Act 46 o f 1964, s. 6, for sub -section ( 3) of section 4 (w.e.f.1 -4-1965). 8. The Explanation inserted by Act 14 of 1982, s. 35 (w.e.f. 1 -4-1982). 9. Subs. by Act 3 of 1989, s. 61, for clause ( 4A) (w.e.f. 1 -4-1989). 20 Explanation 2.A company shall be deemed to be resident in India during the year ending on the valuation date, if (a) it is a company formed and registered under the Companies Act, 1956 (1 of 1956), or is an existing company within the meaning of that Act ; or (b) during that year the control and management of its affairs is situated wholly in India. 1[7. Value of assets, how to be determined. (1) Subject to the provisions of sub -section ( 2), the value of any asset, other than cash, for the purposes of this Act shall be its value as on the valuation date determined in the manner laid down in Schedule III. (2) The value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date, may, at the option of the assessee, be taken to be the value determined in the manner laid down in Schedule III as on the valuation date next following the date on which he became the owner of the house or the valuation date relevant to the assessment year commencing on the 1st day of April, 1971, wh ichever valuation date is later . 2* * * * * Explanation. For the purposes of this sub -section, (i) where the house has been constructed by the assessee, he shall be deemed to have become the owner thereof on the date on which the construction of such house was completed; (ii) house includes a part of a house being an independent residential unit.] CHAPTER III WEALTH -TAX AUTHORITIES 3[8

house being an independent residential unit.] CHAPTER III WEALTH -TAX AUTHORITIES 3[8. Wealth -tax authorities and their jurisdiction. The income -tax authorities specified in section 116 of the Income -tax Act shall be the wealth -tax authorities for the purposes of this Act and every such authority shall exercise the powers and perform the functions of a wealth -tax authority under this Act in respect of any individual, Hindu undivided family or company, and for this purpose his jurisdiction under this Act shall be the same as he has under the Income -tax Act by virtue of orders or directions issued under section 120 of that Act (including or ders or directions assigning concurrent jurisdiction) or under any other provision of that Act. Explanation. For the purposes of this section, the wealth -tax authority having jurisdiction in relation to a person who is not an assessee within the meaning of the Income -tax Act shall be the wealth -tax authority having jurisdiction in respect of the area in which that pers on resides. 8A. [Power of Commissioner respecting specified areas, cases, persons, etc .]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988) , s. 132 (w.e.f. 1-4-1988 ). Earlier it was inserted by Act 46 of 1964, s. 9 (w.e.f . 1-4-1965). 1. Subs. by Act 3 of 1989, s. 62, for section 7 (w.e.f. 1 -4-1989). Earlier section 7 was amended by Act 46 of 1964, s. 6 (w.e.f. 1 -4-1965), Act 45 of 1972, s. 8 (w.e.f. 1 -4-1973), Act 66 of 1976, s. 27 (w.e.f. 1 -4-1976) and Act 44 of 1980, s. 38 (w.e.f. 1 -4-1980). 2. The proviso omit ted by Act 18 of 1992, s. 93 (w.e.f. 1 -4-1993). 3. Subs. by Act 4 of 1988, s. 131, for sections 8, 9, 10 and 11 (w.e.f. 1 -4-1988). Earlier these sections was amended by Act 46 of 1964, s. 8 and 10 (w.e.f. 1 -4-1965), Act 20 of 1967, s. 34 (w.e.f. 1 -4-1967) and Act 41 of 1975, s. 84 (w.e.f. 1 -10-1975). 21 8AA. [Concurrent jurisdiction of Inspecting Assistant Commissioner and Wealth -tax Officer .]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988) , s. 132 (w.e.f. 1-4-1988) . Earlier it was inserted by Act 41 of 1975 , s. 85 (w.e.f. 1-10-1975). 8B. [Power to transfer cases .]Omitted by s. 132, ibid. (w.e.f. 1-4-1988) . 9. Control of wealth -tax authorities. Section 118 of the Income -tax Act and any notification issued thereunder shall apply in relation to the control of wealth -tax authorities as they apply in relation to the control of the corresponding income -tax authorities, except to the extent to which the Board may, b y notification in the Official Gazette, otherwise direct in respe ct of any wealth -tax authority. 9A. [Commissioners of Wealth -tax (Appeals ).]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988) , s. 132 (w.e.f. 1-4-1988) . 10. Instructions to subordinate authorities. (1) The Board may, from time to time, issue such orders, instructions and directions to other wealth -tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructi ons and directions of the Board : Provided that no such orders, instructions or directions shall be issued (a) so as to require any wealth -tax authority to make a particular assess ment or to dispose of a particular case in a particular manner ; or (b) so as to interfere with the discretion of the Deputy Commissioner (Appeals) or Commissioner (Appeals) in the exercise of his appellate functions. (2) Without prejudice to the generalit y of the foregoing power, (a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time, (whether by way of relaxatio n of any of the provisions of sections 1[14, 15, 16, 17, 17B,] 18 and 35 or otherwise), general or special orders in respect of any class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other wealth -tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information ; (b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any wealt h-tax authority, not being a Deputy Commissioner (Appeals) or Commissioner (Appeals), to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law. ] 10A. [Directors of Inspection .]Omitted by the Direct Tax Laws (Amendm ent) Act, 1987 (4 of 1988) , (w.e.f. 1-4-1988 ). Earlier section 10A was inserted by Act 46 of 1964 , s. 10 (w.e.f. 1-4-1965) . 1. Subs. by Act 12 of 1990, s. 53, for 16, 17 (w.e.f. 1 -4-1990). 22 11. Jurisdiction of Assessing Officers and power to transfer cases. (1) The provisions of sections 124 and 127 of the Income -tax Act shall, so far as may be, apply for the purposes of this Act as they apply for the purposes of the Income -tax Act, subject to the modifications specified in sub -section ( 2). (2) The modifications referred to in sub -section ( 1) shall be the following, namely : (a) in section 124 of the Income -tax Act, (i) in sub -section ( 3), references to the provisions of the Income -tax Act shall be construed as references to the corresponding p rovisions of the Wealth -tax Act ; (ii) sub-section ( 5) shall be omitted; (b) in section 127 of the Income -tax Act, in the Explanation below sub -section 1[(4)], references to proceedings under the Income -tax Act shall be construed as including references to procee dings under the Wealth -tax Act. ] 11A. [Inspector of Wealth -tax.]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988) , s. 132 (w.e.f. 1-4-1988 ). Earlier inserted by Act 46 of 1964 , s. 11 (w.e.f. 1-4-1965) and later substituted by Act 20 of 1967, s. 34 ( w.e.f . 1-4-1967) . 11AA. [Commissioner competent to perform any function or functions .]Omitted by s. 132, ibid. w.e.f. 1 -4-1988. Earlier section 11AA was inserted by Act 19 of 1970 , s. 26 (w.e.f. 1-4-1970) . 11B. [Wealth -tax Officer competent to perform any function or functions .]Omitted by s. 132, ibid. (w.e.f. 1-4-1988) . Earlier section 11B was inserted by Act 20 of 1967 , s. 34 (w.e.f. 1-4-1967) and later amended by Act 41 of 1975, s. 87 ( w.e.f . 1-10-1975) . 12. [Control of wealth -tax authorities .]Omitted by s. 132, ibid. (w.e.f. 1-4-1988 ). Earlier substituted by Act 46 of 1964 , s. 11 (w.e.f. 1-4-1965). 2[12A. Appointment of Valuation Officers. (1) The Central Government may appoint as many Valuation Officers as it thinks fit. (2) Subject to the rules and orders of the Central Government regulating the conditions of service of persons in public services and posts, a wealth -tax authority may appoint as many overseers, surveyors and assessors as may be necessary to assist the Valuation Officers in the performance of their functions. ] 13. [Wealth -tax authorities to follow orders, etc., of the Board .]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988) , s. 132 (w.e.f. 1-4-1988) . 3[13A. Powers of 4[Director -General or Director], 5[Chief Commissioner or Commissioner] and 6[Joint Commissioner] to make enquiries. The 4[Director -General or Director], the 5[Chief Commissioner or Com missioner] and the 6[Joint Commissioner] shall be competent to make any enquiry under this Act, and for this purpose shall have all the powers that an 7[Assessing Officer] has under this Act in relation to the making of enquiries.] 1. Subs. by Act 3 of 1989, s. 63, for ( 5) (w.r.e.f. 1 -4-1988). 2. Ins. by Act 45 of 1972, s. 9 (w.e.f. 15 -11-1972). 3. Ins. by Act 46 of 196 4, s. 13 (w.e.f. 1 -4-1965). 4. Subs. by Act 4 of 1988, s. 127, for Director of Inspection (w.e.f. 1 -4-1988). 5. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 6. Subs. by Act 21 of 1998, s. 3, for Deputy Commissioner (w.e.f. 1 -4-1988). E arlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assistant Commissioner (w.e.f. 1 -4-1988). 7. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 23 CHAPTER IV ASSESSMENT 14. Return of wealth. 1[(1) Every person, if his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date exceeded the maximum amount which is not chargeable to wealth -tax, shall, on or before the due date, furnish a return of his net wealth or the net wealth of such other person as on that valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of such net wealth and such other particul ars as may be prescribed. Explanation. In this sub -section, due date in relation to an assessee under this Act shall be the same date as that applicable to an assessee under the Income -tax Act under the Explanation to sub -section (1) of section 139 of th e Income -tax Act. (2) Notwithstanding anything contained in any other provision of this Act, a return of net wealth which shows the net wealth below the maximum amount which is not chargeable to tax shall be deemed never to have been furnished: Provided that this sub -section shall not apply to a return furnished in response to a notice under section 17.] 2* * * * * 3[14A. Power of Board to dispense with furnishing documents, etc., with return of wealth. The Board may make rules providing for a class or classes of persons who may not be required to furnish documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents, which are otherwise under any other p rovisions of this Act, except section 14B, required to be furnished, along with the return but on demand to be produced before the Assessing Officer. 14B. Filing of return in electronic form. The Board may make rules providing for (a) the class or classes of persons who shall be required to furnish the return in electronic form; (b) the form and the manner in which the return in electronic form may be furnished; (c) the documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand; (d) the computer resource or the electronic record to which the return in electron ic form may be transmitted. ] 4[15. Return after due date and amendment of return. If any person has not furnished a return within the time allowed under sub - section (1

after due date and amendment of return. If any person has not furnished a return within the time allowed under sub - section (1) of section 14 or under a notice issued under clause ( i) of sub-section ( 4) of section 16, or having furnished a return discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the expiry of one year from the end of the relevant assessment year or before the compl etion of the assessment, whichever is earlier: 1. Subs. by Act 4 of 1988, s. 133, for sub -sections (1) and ( 2) (w.e.f. 1 -4-1989). Earlier these sub -sections amended by Act 58 of 1960, s. 3 and the Second Schedule (w.e.f. 26 -12-1960), Act 46 of 1964, s. 14 (w.e.f. 1 -4-1964), Act 19 of 1970, s. 26 (w.e.f. 1 -4-1970). 2. Sub -section ( 3) omitted by s. 133, ibid. (w.e.f. 1 -4-1989). 3. Ins. by Act 17 of 2013, s. 62 (w.e.f. 1 -6-2013). 4. Subs. by Act 4 of 1988, s. 134, for section 15 (w.e.f. 1 -4-1989). 24 Provided that (a) where such return or revised return relates to the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, it may be furnished at any time up to and inclusive of the 31st day of March, 1990 or before the completion of the a ssessment, whichever is earlier ; (b) where such return or revised return relates to the assessment year commencing on the 1st day of April, 1988, it may be furnished at any time up t o and inclusive of the 31st day of March, 1991 or before the completion of the assessment, whichever is earlier.] 1[15A. Return by whom to be signed. The return made under section 14 or section 15 shall be signed and verified 2[(a) in the case of an individual, (i) by the individual himself ; (ii) where he is absent from India, by the individual himself or by some person duly authorised by him in this behalf; (iii) where he is mentally incapacitated from attending to his affairs, by his guardian or a ny other person competent to act on his behalf; and (iv) where, for any other reason, it is not possible for the individual to sign the return, by any person duly a uthorised by him in this behalf : Provided that in a case referred to in sub -clause ( ii) or s ub-clause ( iv), the person signing the return holds a valid power of attorney from the individual to do so, which shall be attached to the return ;] (b) in the case of a Hindu undivided family, by the karta, and, where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family; and 3[(c) in the case of a company, by the managing director thereof, or where for any unavoidable reason such managing director is not able to sign and verify the return or where there is no managing director, by any director thereof:] 4[Provided that where the company is not resident in India, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so, which shall be attached to the return : Provided further that, (a) where the company is bein g wound up, whether under the orders of the court or otherwise, or where any person has been appointed as the receiver of any assets of the company, the return shall be signed and verified by the liquidator referred to in sub -section ( 1) of section 178 of the Income -tax Act ; (b) where the management of the company has been taken over by the Central Government or any State Government under any law, the return of the company shall be signed and verified by the principal officer thereof.] 1. Ins. by Act 46 of 1964, s. 15 (w.e.f. 1 -4-1965). 2. Subs. by Act 4 of 1988, s. 135, for clause ( a) (w.e.f. 1 -4-1989). 3. Subs. by Act 41 of 1975, s. 88, for clause ( c) (w.e.f. 1 -4-1976). 4. Added by Act 4 of 1988, s. 135 (w.e.f. 1 -4-1989). 25 1[15B. Self-assessment. (1) Where any tax is payable on the basis of any return furnished under section 14 or section 15 or in response to a notice under clause ( i) of sub -section ( 4) of section 16 or under section 17, after taking into account the amount of tax , if any, already paid under any provision of this Act, the assessee shall be liable to pay such tax, together with interest payable under any provision of this Act, for any delay in furnishing the return, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest. Explanation. Where the amount paid by the assessee under this sub -section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable. (2) After the regular assessment under section 16 has been made, any amount paid under sub -section (1) shall be deemed to have been paid towards such regular assessment. (3) If any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub -section ( 1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid and all the provisions of this Act shall apply accordingly.] 2[(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as re ferences to those provisions as for the time being in force and applicable to the relevant assessment year.] 15C. [Provisional assessment .]Omitted by the Direct Tax Laws (Amendment ) Act, 1987 , s. 137 (w.e.f. 1-4-1989 ). Earlier it was inserted by the Wealth -tax (Amendment ) Act, 1964 , s. 15 (w.e.f. 1-4-1965 ). 3[16. Assessment. 4[(1) Where a return has been made under section 14 or section 15 or in response to a notice under clause ( i) of sub -section ( 4), (i) if any tax or interest is found due on the basis of such return, after adjustment of any amount paid by way of tax or interest, then, without prejudice to the provisions of sub -section ( 2), an intimation shall be sent to the assessee specifying the sum so pa yable, and such intimation shall be deemed to be a notice of demand issued under section 30 and all the provisions of this Act shall apply accordingly; and (ii) if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effec t shall be sent to the assessee : Provided that except as otherwise provided in this sub -section, the acknowledgement of the return shall be deemed to be an intimation under this sub -section where either no sum is payable by the assessee or no refund is due to him : Provided further that no intimation under this sub -section shall be sent after the expiry of two years from the end of the assessment year in which the net wealth was first assessable.] 1. Subs. by Act 4 of 1988, s. 136, for section 15B (w.e.f. 1 -4-1989). Earlier it was inserted by Act 46 of 1964, s. 15 (w.e.f. 1 -4-1965) which was later amended by Act 42 of 1970, s. 60 (w.e.f. 1 -4-1971) and Act 41 of 1975, s. 89 (w.e.f. 1 -4-1976). 2. Ins. by Act 36 of 1989, s. 27 (w.r.e.f . 1-4-1989). 3. Subs. by Act 4 of 1988, s. 138, for section 16 (w.e.f. 1 -4-1989). Earlier section 16 was amended by Act 46 of 1964, s. 16 (w.e.f. 1 -4-1965). 4. Subs. by Act 27 of 1999, s. 92, for sub -section ( 1) (w.e.f. 1 -6-1999). Earlier it was amended by Act 3 of 1989, s. 64 (w.e.f. 1 -4-1989) and Act 36 of 1989, s. 28 (w.r.e.f. 1 -4-1989). 26 1* * * * * (2) 2[Where a return has been made under section 14 or section 15, or in response to a notice under clause ( i) of sub -section ( 4) of this section, the Assessing Officer shall, if he] considers it necessary or expedient to ensure that the assessee has not understated the net wealth or has not underpaid the tax in any manner, 3[serve on the assessee ] a notice requiring him, on a date to be specified therein, either to attend at the office of the Assessing Officer or to produce, or cause to be produced there, any evidence o n which the assessee may rely in support of the return: 4[Provided that no notice under this sub -section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.] (3) On the day specified in the notice issued under sub -section ( 2) or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevan t material which he has gathered, the Assessing Officer shall, by order in writing, assess the net wealth of the assessee and determine the sum payable by him on the basis of such assessment. (4) For the purposes of making an assessment under this Act, the Assessing Officer may serve, on any person who has made a return under section 14 or section 15 or in whose case the time allowed under sub-section ( 1) of section 14 for furnishing the return has expired, a notice requiring him, on a date to be specified therein, (i) where such person has not made a return 5[within the time allowed under sub -section ( 1) of section 14] to furnish a return of his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date, in the prescribed form and verified in the prescribed manner, setting forth the particulars of such net wealth and such other particulars as may be prescribed, or (ii) to produce or cause to be produced such accounts, records or other docum ents as the Assessing Officer may require. (5) If any person, (a) fails to make the return required under sub -section ( 1) of section 14 and has not made a return or a revised return under section 15, or (b) fails to comply with all the terms of a notice i ssued under sub -section ( 2) or sub -section ( 4), the Assessing Officer, after taking into account, all relevant material which he has gathered, shall, after giving such person an opportunity of being heard, estimate the net wealth to the best of his judgmen t and determine the sum payable by the person on the basis of such assessment : Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the person to show cause, on a date and time to be specified in the notic e, why the assessment should not be completed to the best of his judgment: Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section ( 4) has been issued prior to the making of the assessment under t his sub -section.] 1. Sub -section ( 1A) and ( 1B) omitted by Act 27 of 1999, s. 92 (w.e.f. 1 -6-1999). Earlier sub -section ( 1A) inserted by Act 3 of 1989, s. 64 (w.e.f. 1 -4-1989) and later amended by Act 36 of 1989, s. 28 (w.r.e.f. 1 -4-1989). Sub -section ( 1B) inserted by Act 12 of 1990, s. 54 (w.r.e.f. 1 -4-1989). 2. Subs. by Act 36 of 1989, s. 28, for In a case referred to in sub -section (1), if the Assessing Officer (w. r.e.f. 1 -4-1989). 3. Subs. by s. 28, ibid., for he shall server or the Assessee (w.r.e.f. 1 -4-1989). 4. Subs. by Act 49 of 1991, s. 74, for the proviso (w.e.f. 1 -10-1991). 5. Subs. by Act 12 of 1990, s. 54, for before the

991). 5. Subs. by Act 12 of 1990, s. 54, for before the end of the relevant assessmen t year (w.e.f. 1 -4-1990). 27 1[(6) Where a regular assessment under sub -section ( 3) or sub -section ( 5) is made, (a) any tax or interest paid by the assessee under sub -section ( 1) shall be deemed to have been paid towards such regular assessment ; (b) if no refund is due on regular assessment or the amount refunded under sub -section ( 1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of thi s Act shall apply accordingly. 2* * * * *] 3* * * * * 4[16A. Reference to Valuation Officer. (1) For the purpose of making an assessment (including an assessment in respect of any assessment year commencing before the date of coming into force of this section) under this Act, 5[where under the provisions of section 7 read with the rules made under this Act, or, as the case may be, the rules in Schedule III, the market value of any asset is to be taken into account in such assessment,] the 6[Assessing Officer] may refer the valuation of any asset to a Valuation Officer (a) in a case where the value of the asset as returned is in accordance with the estimate made by a registered valuer, if the 6[Assessing Officer] is of opinion that the val ue so returned is less than its fair market value ; (b) in any other case, if the 6[Assessing Officer] is of opinion (i) that the fair market value of the asset exceeds the value of the asset as returned by more than such percentage of the value of the asset as returned or by more than such amount as may be prescribed in this behalf; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do. (2) For the purpose of estimating the value of any asset in pursuance of a reference under sub -section (1), the Valuation Officer may serve on the assessee a notice requiring him to produce or cause to be produced on a date specified in the notice such accounts, records or other documents as the Valuation Officer may require. (3) Where the Valuation Officer is of opinion that the value of the asset has been correctly declared in the return made by the assessee under section 14 or section 15, he shall pass an order in writing to that effect and send a copy of his or der to the 6[Assessing Officer] and to the assessee. (4) Where the Valuation Officer is of opinion that the value of the asset is higher than the value declared in the return made by the assessee under section 14 or, section 15, or where the asset is not disclosed or the value of the asset is not declared in such return or where no such return has been made, the Valuation Officer shall serve a notice on the assessee intimating the value which he proposes to estimate and giving the assessee an opportunity to state, on a date to be specified in the notice, his objections either in person or in writing before the Valuation Officer and to produce or cause to be produced on that date such evidence as the assessee may rely in support of his objections. 1. Ins. by Act 36 of 1989, s. 28 (w.r.e.f. 1 -4-1989). 2. Sub -section ( 7) omitted by Act 27 of 1999, s. 92 (w.e.f. 1 -6-1999). Earlier it was inserted by Act 36 of 1989, s. 28 (w.r.e.f. 1 -4-1989). 3. The Explanation omitted by s. 92, ibid. (w.e.f. 1 -6-1999). Earlier it was inserted by Act 49 of 1991, s. 74 (w.e.f. 1 -10-1991). 4. Ins. by Act 45 of 1972, s. 10 (w.e.f. 1 -1-1973). 5. Ins. by Act 3 of 1989, s. 65 (w.e.f. 1 -4-1989). 6. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 28 (5) On the date specified in the notice under sub -section ( 4), or as soon thereafter as may be, after hearing such evidence as the assessee may produce and after considering such evidence as the Valuation Officer may require on any specified points and after taking i nto account all relevant material which he has gathered, the Valuation Officer shall, by order in writing, estimate the value of the asset and send a copy of his order to the 1[Assessing Officer] and to the assessee. (6) On receipt of the order under sub-section ( 3) or sub -section ( 5) from the Valuation Officer, the 1[Assessing Officer] shall, so far as the valuation of the asset in question is concerned, proceed to complete the assessment in conformity with the estimate of the Valuation Officer.] 17. Wealth escaping assessment. 2[(1) If the Assessing Officer 3[has reason to believe] that the net wealth chargeable to tax in respect of which any person is assessable under this Act has escaped assessment for any assessment year (whether by reason of under - assessment or assessment at too low a rate or otherwise), he may, subject to the other provisions of this section and section 17A, serve on such person a notice requiring him to furnish within such period, 4*** as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner setting forth the net wealth in respect of which such person is assessable as on the valuation date mentioned in the notice, along with such other particulars as may be required by the notice, a nd may proceed to assess or reassess such net wealth and also any other net wealth chargeable to tax in respect of which such person is assessable, which has escaped assessment and which comes to his notice subsequently in the course of the proceedings und er this section for the assessment year concerned (hereafter in this section referred to as the relevant assessment year), and the provisions of this Act shall, so far as may be, apply as if the return were a return required t o be furnished under section 1 4: Provided that where an assessment under sub -section ( 3) of section 16 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year , unless any net wealth chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 14 or section 15 or in response to a notice issued under sub -section ( 4) of sectio n 16 or this section or to disclose fully and truly all material facts necessary for his assessment for that assessment year: 5[Provided further that the Assessing Officer shall, before issuing any notice under this sub -section, record his reasons for doin g so:] 6[Provided also that nothing contained in the first proviso shall apply in a case where any net wealth in relation to any asset (including financial interest in any entity) located outside India chargeable to tax, has escaped assessment for any assessment year:] 7[Provided also that the Assessing Officer may assess or reassess such net wealth, other than the net wealth which is the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.] Explana tion.Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoi ng proviso. 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 2. Subs. by s. 139, ibid., for sub -section ( 1) (w.e.f. 1 -4-1989). Earlier it was amended by Act 46 of 1964, s. 17 (w.e.f. 1 -4-1965). 3. Subs. by Act 3 of 1989, s. 66, for , for reasons to be recorded by him in writing, is of the opinion (w.e.f. 1 -4-1989). 4. The words not being less than thirty days, omitted by Act 32 of 2003, s. 100 (w.r.e.f. 1 -4-1989). 5. Ins. by Act 3 of 19 89, s. 66 (w.e.f. 1 -4-1989). 6. Ins. by Act 23 of 2012, s. 116 (w.r.e.f. 1 -7-2012). 7. Ins. by Act 18 of 2008, s. 60 (w.e.f. 1 -4-2008). 29 (1A) No notice under sub -section ( 1) shall be issued for the relevant assessment year, 1[(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause ( b) 2[or clause ( c)]; (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the net wealth chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees t en lakhs or more for that year; ] 2[(c) if four years, b ut not more than sixteen years, have elapsed from the end of the relevant assessment year unless the net wealth in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any a ssessment year.] 3[Explanation 1 ].For the purposes of sub -section ( 1) and sub -section ( 1A), the following shall also be deemed to be cases where net wealth chargeable to tax has escaped assessment, namely: (a) where no return of net wealth has been furni shed by the assessee although his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date exceeded the maximum amount which is not chargeable to wealth -tax; (b) where a return of net wealth has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the net wealth or has claimed excessive exemption or deduction in the return; 2[(c) wher e a person is found to have any asset (including financial interest in any entity) located outside India.] 2[Explanation 2. For the removal of doubts, it is hereby clarified that the provisions of this section, as amended by the Finance Act, 2012, shall al so be applicable for any assessment year beginning on or before the 1st day of April, 2012 (23 of 2012) .] (1B) (a) In a case where an assessment under sub -section ( 3) of section 16 or sub -section ( 1) of this section has been made for t he relevant assessment year, no notice shall be issued under sub-section ( 1) 4[by an Assessing Officer, who is below the rank of 5[Assistant Commissioner or Deputy Commissioner], unless the 6[Joint Commissioner ] is satisfied , on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice]: Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissione r or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice. (b) In a case other than a case falling under clause ( a), no notice shall be issued under sub -section ( 1) by an Assessing Officer, who is below the rank of 6[Joint Commissioner ], after the expiry of four years from the end of the relevant assessment year, unless the 6[Joint Commissioner ] is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.] 7[Explanation. For the removal of doubts, it is hereby declared that the Joint Commissioner, the Commissioner or the Chief Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice, need not issue such notice himself.] 1. Subs. by Act 14 of 2001, s. 96, for clauses ( a) and ( b) (w.e.f. 1 -6-2001). 2. Ins. by Act 23 of 2012, s. 116 (w.e.f. 1-7-2012). 3. The Explanation renumbered as Explanation 1 thereof by s. 116, ibid. (w.e.f. 1 -7-2012). 4. Subs. by Act 12 of 1990, s. 55, for except by an Assessing Officer of the rank of Assistant Commissioner or Deputy Commissioner (w.e.f. 1 -4-1990). 5. Subs. by Act 21 of 1998, s. 66, for Assistant Commissioner (w.e.f. 1 -10-1998). 6. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). 7. Ins. by Act 18 of 2008, s. 60 (w.r.e.f. 1 -10-1998). 30 1[(2) Nothing contained in this section limiting the time within which any proceeding for assessment or reassessment may be commenced, shall apply to an assessment or reassessment to be made on such person in consequence of or to give effect to any finding or direction contained in an order under section 23, 24, 25, 27 or 29 2[or by a Court in any p roceedings under any other law] : Provided that the provisions of this sub -section shall not apply in any case where any such assessment or reassessment re lates to an assessment year in respect of which an assessment or reassessment could not have been made at the

assessment re lates to an assessment year in respect of which an assessment or reassessment could not have been made at the time the order which was the subject -matter of the appeal, reference or revision, as the case may be, was made by reason of any provision limiting the time within which any action for assessment or reassessment may be taken.] 3[17A. Time limit for completion of assessment and reassessment. 4[(1) No order of assessment shall be made under section 16 at any time after the expiry of two years from the end of the assessment year in which the net wealth was first assessable: 5[Provided that, (a) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or bef ore the 31st day of March, 1991 ; (b) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992:] 6[Provided further that in case the assessment year in which the net wealth was first assessable is the assessment year 7[commencing on or after the 1st day of April, 2004 but before the 1st day of April, 2010], the provisions of this sub -section shall have effect as if for the wor ds two years , the words twenty -one months had been substituted.] (2) No order of assessment or reassessment shall be made under section 17 after the expiry of 8[one year] from the end of the financial year in which the notice under sub -section (1) of that section was served] : 9[Provided that where the notice under sub -section ( 1) of section 17 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment or reassessment may be made at any time up to the 31st d ay of March, 2002:] 6[Provided further that where the notice under sub -section ( 1) of section 17 was served on or 10[after the 1st day of April, 2005 but before the 1st day of April, 2011], the provisions of this sub -section shall have effect as if for the words "one year", the words "nine months" had been substituted.] 11* * * * *] 1. Ins. by Act 46 of 1964, s. 17 (w.e.f. 1-4-1965). 2. Added by Act 4 of 1988, s. 139 (w.e.f. 1 -4-1989). 3. Ins. by Act 41 of 1975, s. 90 (w.e.f. 1 -4-1976). 4. Subs. by Act 4 of 1988, s. 140, for sub -sections ( 1) and ( 2) (w.e.f. 1 -4-1989). 5. Subs. by Act 13 of 1989, s. 28, for the proviso (w.e. f. 1-4-1989). 6. Ins. by Act 21 of 2006, s. 57 (w.e.f. 1 -6-2006). 7. Subs. by Act 23 of 2012, s. 117, for commencing on the 1st day of April, 2004 or any subsequent year (w.e.f. 1 -7-2012) 8. Subs. by Act 14 of 2001, s. 97, for two years (w.e.f. 1 -6-2001). 9. Subs. by s. 97, ibid., for the proviso (w.e.f. 1 -6-2001). 10. Subs. by Act 23 of 2012, s. 117, for after the 1st day of April, 2005 (w.e.f. 1 -7-2012). 11. The Explanation omitted by Act 14 of 2001, s. 97 (w.e.f. 1 -6-2001). 31 (3) Notwithstanding anything contained in sub -sections ( 1) and ( 2), an order of fresh assessment in pursuance of an order passed on or after the 1st day of April, 1975, under section 1[23A], section 24 or section 25, setting aside or cancelling an assessment, may be made at any time before the expiry of 2[one year] from the end of the financial year in which the order under section 1[23A] or section 24 is received by the 3[Chief Commissioner or Commissioner] or, as the case may be, the order under section 2 5 is passed by the Commissioner : 4[Provided that where the order under section 23A or section 24 is received by the Chief Commissioner or Commissioner or, as the case ma y be, the order under section 25 is passed by the Commissioner, on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such an order of fresh assessment may be made at any time up to the 31st day of March, 2002:] 5[Provided further that where the order under section 23A or section 24 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 25 is passed by the Commissioner, on or 6[after the 1st day of April, 2005 but before the 1st day of April, 2011], the provisions of this sub -section shall have effect as if for the words "one year", the words "nine months" had been substituted.] (4) The provisions of sub -sections ( 1) and ( 2) shall not apply to the assessment or reassessment made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under section 23, section 24, section 25, section 27 or section 29 or in an order of any court in a proceeding otherwise than by way of app eal or reference under this Act, and such assessment or reassessment may, subject to the provisions of sub -section ( 3), be completed at any time. Explanation 1. In computing the period of limitation for the purposes of this section (i) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be reheard under the proviso to section 39, or (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court, or 7[(iia) the period (not exceeding sixty days) commencing from the date on which the 8[Assessing Officer] received the declaration under sub -section ( 1) of section 18C and ending with the date on which the order under sub -section ( 3) of that section is made by him, or] (iii) in a case where an application made before the Wealth -tax Settlement Commission under section 22C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such applicatio n is made and ending with the date on which the order under sub-section ( 1) of section 22D is received by the Commissioner under sub -section ( 2) of that section, shall be excluded: 9[Provided that where immediately after the exclusion of the afore said time or period, the period of limitation referred to in sub -sections ( 1), (2) and ( 3) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly:] 1. Subs. by Act 14 of 20 01, s. 97, for 23 (w.e.f. 1 -6-2001). 2. Subs. by s. 97, ibid., for two years (w.e.f. 1 -6-2001). Earlier the quoted words were substituted by Act 4 of 1988, s. 140, for four years (w.e.f. 1 -4-1989). 3. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f 1 -4-1988). 4. Subs. by Act 14 of 2001, s. 97, for the proviso (w.e.f. 1 -6-2001). Earlier the proviso was inserted by Act 4 of 1988, s. 140 (w.e.f. 1 -4-1989). 5. Ins. by Act 21 of 2006, s. 57 (w.e.f. 1 -6-2006). 6. Subs. by Act 23 of 2012, s. 117, f or after the 1st day of April, 2005 (w.e.f. 1 -7-2012). 7. Ins. by Act 67 of 1984, s. 56 (w.e.f. 1 -10-1984). 8. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 9. Ins. by Act 49 of 1991, s. 75 (w.e.f. 27 -9-1991). 32 1[Provided further that where a proceeding before the Settlement Commission abates under section 22HA, the period of limitation refer red to in this section available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, shall, after the exclusion of the period under sub -section ( 4) of section 22HA, be not less than one year; and where such perio d of limitation is less than one year, it shall be deemed to have been extended to one year.] Explanation 2. Where, by an order referred to in sub -section ( 4), any asset is excluded from the net wealth of one person and held to be the asset of another pers on, then, an assessment in respect of such asset on such other person shall, for the purposes of sub -section ( 2) of section 17 and this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order, provided such other person was given an opportunity of being heard before the said order was passed.] 2[17B. Interest for defaults in furnishing return of net wealth. (1) Where the return of net wealth for any assessment year under sub -section ( 1) of section 14 or section 15, or in response to a notice under clause ( i) of sub -section ( 4) of section 16, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of 3[one per cent .] for every month or part of a month comprised in the period commencing on the date immediately following the due date, and, (a) where the return is furnished after the due date, ending on the date of furnishing of the return, or (b) where no return has been furnish ed, ending on the date of completion of the assessment under sub-section ( 5) of section 16, on the amount of tax payable on the net wealth as determined 4[under sub -section ( 1) of section 16 or] on regular assessment. Explanation 1.In this section, due date means the date specified in sub -section ( 1) of section 14 as applicable in the case of the assessee. 5[Explanation 2.In this sub -section, tax payable on the net wealth as determined under sub -section (1) of section 1 6 shall not include the additional wealth -tax, if any, payable under section 16.] Explanation 3.Where, in relation to an assessment year, an assessment is made for the first time under section 17, the assessment so made shall be regarded as a regular asses sment for the purposes of this section. 4[Explanation 4.In this sub -section, tax payable on the net wealth as determined under sub -section (1) of section 16 or on regular assessment shall, for the purposes of computing the interest payable under section 15B, be deemed to be tax payable on the net wealth as declared in the return.] (2) The interest payable under sub -section ( 1) shall be reduced by the interest, if any, paid under section 15B towards the interest chargeable under this section. 1. Ins. by Act 18 of 2008, s. 61 (w.r.e.f. 1 -6-2007). 2. Ins. by Act 4 of 1988, s. 141 (w.e.f. 1 -4-1989). 3. Subs. by Act 54 of 2003, s. 19, for one and one -fourth per cent. (w.e.f. 8 -9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 98, for tw o per cent. (w.e.f. 1 -6-2001). 4. Ins. by Act 3 of 1989, s. 67 (w.e.f. 1 -4-1989). 5. Subs. by s. 67, ibid., for the Explanation (w.e.f. 1 -4-1989). 33 (3) Where th e return of net wealth for any assessment year, required by a notice under sub -section ( 1) of section 17, issued 1[after the determination of net wealth under sub -section ( 1) of section 16 or] after the completion of an assessment under sub -section ( 3) or sub-section ( 5) of section 16 or section 17, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of 2[one per cent .] for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid,

of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and, (a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furni shing the return; or (b) where no return has been furnished, ending on the date of completion of the reassessment under section 17, on the amount by which the tax on the net wealth determined on the basis of such reassessment exceeds the tax on the net wea lth as determined 1[under sub -section ( 1) of section 16 or] on the basis of the earlier assessment aforesaid. 3* * * * * (4) Where, as a result of an order under section 23 or section 24 or section 25 or section 27 or section 29 or section 35 or any order of the Wealth -tax Settlement Commission under sub -section ( 4) of section 22D, the amount of tax on which interest was payable under this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and, (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 30 and the provisions of this Act shall apply accordingly, and (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. (5) The provisions of this section shall apply in respect of assessments, for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.] 4[18. Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc. (1) If the5 [Assessing Officer], 6[Deputy Commissioner (Appeals)], 7[Commissioner (Appeals),] 8[Chief Commissioner or Commissioner] or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person 9* * * * * (b) has 10*** failed to comply with a notice under sub -section (2) or sub -section ( 4) of section 16 ; or 1. Ins. by Act 3 of 1989, s. 67 (w.e.f. 1 -4-1989). 2. Subs. by Act 54 of 2003, s. 19, for one and one -fourt h per cent. (w.e.f. 8 -9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 98, for two per cent. (w.e.f. 1 -6-2001). 3. The Explanation omitted by Act 3 of 1989, s. 67 (w.e.f. 1 -4-1989). 4. Restored by s. 95, ibid. (w.e.f. 1 -4-1989). Earlier subs. by Act 4 of 1988, s. 142 (w.e.f. 1 -4-1989) and also substituted by Act 46 of 1964, s. 18 (w.e.f. -1-4-1965). 5. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 6. Subs. by s. 127, ibid., for Appellate Assistant Co mmissioner (w.e.f. 1 -4-1988). 7. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 8. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 9. Clause ( a) omitted by Act 3 of 1989, s. 68 (w.e.f. 1 -4-1989). Earlier it was amended by Act 46 of 1986, s. 33 (w.e.f. 10 -9-1986). 10. The words without reasonable cause omitted by Act 46 of 1986, s. 33 (w.e.f. 10 -9-1986). 34 (c) has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts, he or it may, by order in writing, direct that such person shall pay by way of penalty 1* * * * * 2[(ii) in the cases referred to in clause ( b), in addition to the amount of wealth -tax payable by him, a sum which shall not be less than one thousand rupees but which may extend to twenty -five thousa nd rupees for each such failure ;] 3[(iii) in the cases referred to in clause ( c), in addition to any wealth -tax payable by him, a sum which shall not be less than, but which shall not exceed five times, the amount of tax sought to be evaded by reason of the concealment of particulars of any asse ts or the furnishing of inaccurate particulars in respect of any assets or debts : 4[Provided that in the cases referred to in clause ( b), no penalty shall be imposable if the person proves that there was a reasonable cause for the failure referred to in th at clause.] Explanation 1. For the purposes of clause ( iii) of this sub -section, the expression the amount of tax sought to be evaded (a) in a case to which Explanation 3 applies, means the tax on the net wealth assessed ; (b) in any other case, means t he difference between the tax on the net wealth assessed and the tax that would have been chargeable had the net wealth assessed been reduced by the amount which represents the value of any assets in respect of which particulars have been concealed or inac curate particulars have been furnished and of any debts in respect of which inaccurate particulars have been furnished. Explanation 2. Where in respect of any facts material to the computation of the net wealth of any person under this Act, (A) such perso n fails to offer an explanation or offers an explanation which is found by the 5[Assessing Officer] or the 6[Deputy Commissioner (Appeals)] 7[or the Commissioner (Appeals)] 8[or the Commissioner] to be false, or (B) such person offers an explanation which he is 9[not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his net wealth have been disclosed by him ,] then, the amount added or disallowed in computing the net wealth of such person as a result thereof shall, for the purposes of clause ( c) of this sub -section, be deemed to represent the value of the assets in respect of which particulars have been concealed. 1. Clause ( i) omitted by Act 3 of 1989, s. 68 (w.e.f. 1 -4-1989). Earlier i t was substituted by Act 41 of 1975, s. 91 (w.e.f. 1 -4-1976). 2. Subs. by s. 68, ibid., for clause ( ii) (w.e.f. 1 -4-1989). Earlier it was substituted by Act 41 of 1975, s. 91 (w.e.f. 1 -4-1976). 3. Subs. by Act 41 of 1975, s. 91, for clause ( iii) and the Explanations (w.e.f. 1 -4-1975). Earlier clause ( iii) and the Explanations were substituted by Act 19 of 1968, s. 32 (w.e.f. 1 -4-1968). 4. Subs. by Act 3 of 1989, s. 68, for the proviso (w.e.f. 1 -4-1989). Earlier it was inserted b y Act 46 of 1986, s. 33 (w.e.f. 10 -9-1986). 5. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 6. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 7. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 8. Ins. by Act 20 of 2002, s. 110 (w.e.f. 1 -6-2002). 9. Subs. by Act 46 of 1986, s. 33, for not able to substantiate (w.e.f. 10 -9-1986). 35 1* * * * * 2[Explanation 3. Where any person 3*** fails, without reasonable cause, to furnish within the period specified in sub -section ( 1) of section 17A, a return of his net wealth which he is required to furnish under section 14 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause ( i) of sub -section ( 4) of section 16 or sub -section ( 1) of section 17 and the Assessing Offic er or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has assessable net wealth, then, such person shall, for the purposes of clause ( c) of this sub -section, be deemed to have concealed the particulars of his assets or furnished inaccurate particulars of any assets or debts in respect of such assessment year, notwithstanding that such person furnishes a return of his net wealth at any time after the expiry of either of the peri ods aforesaid applicable to him in pursuance of a notice under section 17.] Explanation 4. Where the value of any asset returned by any person is less than seventy per cent . of the value of such asset as determined in an assessment under section 16 or section 17, such person shall be deemed to have furnished inaccurate particulars of such asset within the meaning of clause ( c) of this sub-section, unless he proves that the va lue of the asset as returned by him is the correct value.] 4[Explanation 5. Where in the course of a search under section 37A, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets represent or form part of his net wealth, (a) on any valuation date falling before the date of the search, but the return in respect of the net wealth on such date has not been furnis hed before the date of the search or, where such return has been furnished before the said date, such assets have not been declared in such return; or (b) on any valuation date falling on or after the date of the search, then, notwithstanding that such ass ets are declared by him in any return of net wealth furnished on or after the date of the search, he shall, for the purposes of imposition of a penalty under clause ( c) of sub-section ( 1) of this section, be deemed to have concealed the particulars of such assets or furnished inaccurate particulars of such assets, 5[unless (1) such assets are recorded, (i) in a case falling under clause ( a), before the date of the search; and (ii) in a case falling under clause ( b), on or before such date, in the books of account, if any, maintained by him or such assets are otherwise disclosed to the 6[Chief Commissioner or Commissioner] before the said date; or (2) he, in the course of the search, makes a statement under sub -section ( 4) of sec tion 37A that any money, bullion, jewellery or other valuable article or thing found in his possession or under his control, forms part of his net wealth which has not been disclosed so far in his return of net wealth to be furnished before the expiry of t he time specified in sub -section ( 1) of section 14, and also specifies in the statement the manner in which such net wealth has been acquired and pays the tax, together with interest, if any, in respect of such net wealth].] 1. The proviso omitted by Act 46 of 1986, s. 33 (w.e.f. 10 -9-1986). 2. Subs. by Act 3 of 1989, s. 68, for Explanation 3 (w.e.f. 1 -4-1989). 3. The words who has not previously been assessed under this Act omitted by Act 20 of 2002, s. 110 (w.e.f. 1 -4-2003). 4. Ins. by Act 67 of 1984, s. 57 (w.e.f. 1 -10-1984). 5. Subs. by Act 46 of 1986, s. 33, for certain words (w.e.f. 10 -9-1986). 6. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 36 1[Explanation 6. Where any adju stment is made in the wealth declared in the return under the proviso to clause ( a) of sub -section ( 1) of section 16 and additional wealth -tax charged under that section, the provisions of this sub -section shall not apply in relation to the adjustments so made.] 2[(1A) Where any amount is added or disallowed in computing the net wealth of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause ( c) of sub -section ( 1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under the said clause ( c).] (2) No order shall be made under sub -section ( 1) unless the person concerned has been given a

clause ( c).] (2) No order shall be made under sub -section ( 1) unless the person concerned has been given a reasonable opportunity of being heard. 3* * * * * 4[(3) No order imposing a penalty under sub -section ( 1) shall be made, (i) by the Income -tax Officer, where the penalty exceeds ten thousand rupees; (ii) by the 5[Assistant Commissioner or Deputy Commissioner], where the penalty exceeds twenty thousand rupees, except with the prior approval of the 6[Joint Commissioner ].] 7* * * * * (4) A 8[Deputy Commissioner (Appeals)], 9[a Commissioner (Appeals),] a 10[Chie f Commissioner or Commissioner] or the Appellate Tribunal on making an order under this section imposing a penalty, shall forthwith send a copy of the same to the 11[Assessing Officer.] 12[(5) No order imposing a penalty under this section shall be passed (i) in a case where the assessment to which the proceedings for imposition of penalty relate is the subject -matter of an appeal to the Deputy Commissioner (Appeals) or the Commissioner (Appeals) under section 23 or an appeal to the Appellate Tribunal under sub-section ( 2) of section 24, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which the order of the Deputy Commissioner (Appeals) or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever is later ; (ii) in a case where the relevant assessment is the subject -matter of re vision under sub -section ( 2) of section 25, after the expiry of six months from the end of the month in which such order of revision is passed; 1. Ins. by Act 3 of 1989, s. 68 (w.e.f. 1 -4-1989). 2. Ins. by Act 18 of 2008, s. 62 (w.r.e.f. 1 -4-1989). Earlier s ub-section ( 1) was inserted by Act 32 of 1971, s. 33 (w.e.f. 1 -4-1972) which was later omitted by Act 41 of 1975, s. 91 (w.e.f. 1 -4-1976). 3. Sub -sections ( 2A) and ( 2B) omitted by Act 41 of 1975, s. 91 (w.e.f. 1 -4-1976). Earlier these sub -sections were ins erted by Act 15 of 1965, s. 20 (w.e.f. 11 -9-1965). 4. Subs. by Act 3 of 1989, s. 68, for sub -section ( 3) (w.e.f. 1 -4-1989). 5. Subs. by Act 21 of 1998, s. 66, for Assistant Commissioner (w.e.f. 1 -10-1998). 6. Subs. by s. 66, ibid. for De puty Commissioner (w.e.f. 1 -10-1998). 7. Sub -section ( 3A) omitted by Act 3 of 1989, s. 68 (w.e.f. 1 -4-989). 8. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 9. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedul e (w.e.f. 10 -7-1978). 10. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 11. Subs. by s. 127, ibid., for Wealth -tax Officer (w.e.f. 1 -4-1988). 12. Subs. by Act 3 of 1989, s. 68, for sub -section ( 5) (w.e.f. 1 -4-1989). 37 (iii) in any other case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. Explanation. In computing the period of limitation for the purposes of this section, (i) any period during which the immunity granted unde r section 22H remained in force ; (ii) the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 ; and (iii) any period during which a proceeding under this section for the levy of penalty is stayed by an order or injunction of any court, shall be excluded. (6) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Am endment) Act, 1989 (3 of 1989) shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be con strued as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 1[18A. Penalty for failure to answer questions, sign statements, furnish information, allow inspection, etc. (1) If any person, (a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by a wealth -tax authority in the exerci se of his powers under this Act ; or (b) refuses to sign any statement made by him in the course of any proceedings under this Act, which a wealth -tax authority may legally require him to sign; or (c) to whom a summons is issued under sub -section ( 1) of section 37 either to attend to give evidence or produce books of account or other doc uments at a certain place and time, omits to attend or produce the books of account or documents at the place and time, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure: Provided that no penalty shall be imposable under clause ( c) if the person proves that there was reasonable cause for the said failure. (2) If a person fails to furnish in due time any statement or information which such person is bound to furnish to the Assessing Officer under section 38, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues: Provid ed that no penalty shall be imposable under this sub -section if the person proves that there was reasonable cause for the said failure. 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Substituted by Act 3 of 1989, s. 69, for section 18A (w.e.f. 1 -4-1989). Earlier section 18A was amended by 46 of 1986, s. 34 (w.e.f. 10 -9-1986) and Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978) whi ch was inserted by Act 41 of 1975, s. 92 (w.e.f. 1 -4-1976). 38 (3) Any penalty imposable under sub -section ( 1) or sub -section ( 2) shall be imposed (a) in a case where the contraventi on, failure or default in respect of which such penalty is imposable occurs in the course of any proceeding before a wealth -tax authority not lower in rank than a 1[Joint Director ] or a 2[Joint Commissioner ], by such wealth -tax authority; (b) in any other case, by the 1[Joint Director ] or the 2[Joint Commissioner ]. (4) No order under this section shall be passed by any wealth -tax authority referred to in sub-section ( 3) unless the person on whom the penalty is proposed to be imposed has been heard, or has been given a reasonable opportunity of being heard in the matter, by such authority. Explanation. In this section, wealth -tax authority includes a Director General, Director, 1[Joint Director ], 3[Assistant Director or Deputy Director] and a Valuation Officer while exercising the powers vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the matters specified in sub -section ( 1) of section 37.] 4[18B. Power to reduce or waive penalty in certain cases. (1) Notwithstanding anything contained in this Act, the 5[6*** Commissioner] may, in his discretion, whether on his own motion or otherwise, 7* * * * * (ii) reduce or waive the amount of penalty imposed or imposable on a person under clause ( iii) of sub-section ( 1) of section 18, if he is satisfied that such person, 8* * * * * (b) in the case referred to in clause ( ii), has, prior to the detection by the 9[Assessing Officer], of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of any asset or debt in respect of which the penalty is imposable, voluntarily and in good faith made full and true disclosure of such p articulars, and also has co -operated in any inquiry relating to the assessment of his net wealth and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respec t of the relevant assessment year. Explanation 10***.For the purposes of this sub -section, a person shall be deemed to have made full and true disclosure of the particulars of his assets or debts in any case where the excess of net wealth assessed over the net wealth returned is of such a nature as not to attract the provisions of clause ( c) of sub-section (1) of section 18. 11* * * * * 1. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). 2. Subs. by s. 66, ibid. for Deputy Commissioner (w.e.f. 1 -10-1998). 3. Subs. by s. 66, ibid. for Assistant Directo r (w.e.f. 1 -10-1998). 4. Ins. by Act 41 of 1975, s. 92 (w.e.f. 1 -10-1975). 5. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 6. The words Chief Commissioner or omitted by Act 38 of 1993, s. 40 (w.e.f. 1 -6-1993). 7. Clause ( i) omit ted by Act 3 of 1989, s. 70 (w.e.f. 1 -4-1989). 8. Clause ( a) omitted by s. 70, ibid. (w.e.f. 1 -4-1989). 9. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 10. The figure 1 omitted by Act 32 of 1985, s. 38 (w.e.f. 24 -5-1985). E arlier the Explanation renumbered as Explanation 1 thereof by Act 67 of 1984, s. 58 (w.e.f. 1 -10-1984). 11. Explanation 2 omitted by s. 38, ibid. (w.e.f. 24 -5-1985). Earlier it was inserted by Act 67 of 1984, s. 58 (w.e.f. 1 -10-1984). 39 (2) Notwithstanding anything contained in sub -section ( 1), if in a case falling under clause ( c) of sub-section ( 1) of section 18, the net wealth in respect of which the penalty is imposed or imposable for the relevant assessment year, or, where such disclosure relates to more than one assessment year, the net wealth for any one of the relevant assessmen t years, exceeds five hundred thousand rupees, no order reducing or waiving the penalty under sub -section ( 1) shall be made by 1[the Commissioner except with the previous approval of the Chief Commissioner or Director General, as the case may be]. (3) Wher e an order has been made under sub -section ( 1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the mak ing of such order: 2[Provided that where an order has been made in favour of any person under sub -section ( 1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years i f he makes an application to the wealth -tax authority referred to in sub-section (4) at any time before the 1st day of April, 1992.] (4) Without prejudice to the powers conferred on him by any other provision of this Act, the 3[4*** Commissioner] may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amoun t, if he is satisfied that (i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case, and (ii) the

cause genuine hardship to the assessee, having regard to the circumstances of the case, and (ii) the assessee has co -operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him. (5) Every order made under this section shall be final and shall not be called into question by any court or any other author ity.] 5[(6) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989) , shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of Apri l, 1988, or any earlier assessment year, and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 6[18BA. Power o f Commissioner to grant immunity from penalty. (1) A person may make an application to the Commissioner for granting immunity from penalty, if (a) he has made an application for settlement under section 22C and the proceedings for settlement have abated under section 22HA; and (b) the penalty proceedings have been initiated under this Act. (2) The application to the Commissioner under sub -section ( 1) shall not be made after the imposition of penalty after abatement. 1. Subs. by Act 38 of 1993, s. 40, for the Chief Commissioner or Commissioner, except with the previous approval of the Board (w.e.f. 1 -6-1993). 2. Ins. by Act 49 of 1991, s. 76 (w.e.f. 27 -9-1991). 3. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 4. The words Chief Commissioner or omitted by Act 38 of 1993, s. 40 (w.e.f. 1 -6-1993). 5. Ins. by Act 3 of 1989, s. 70 (w.e.f. 1 -4-1989). 6. Ins. by Act 18 of 2008, s. 63 (w.e.f. 1 -4-2008). 40 (3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this Act, if he is satisfied that th e person has, after the abatement, co -operated with the wealth -tax authority in the proceedings before him and has made a full and true disclosure of his net wealth and the manner in which such net wealth has been derived. (4) The immunity granted to a per son under sub -section ( 3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted. (5) The immunity gra nted to a person under sub -section ( 3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars, material to the assessment, from the wealth -tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.] 1[CHAPTER IVA SPECIAL PROVISION FOR AVOIDING REPETITIVE APPEALS 18C. Procedure when assessee claims identical question of law is pending before High Court or Supreme Court. (1) Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his ca se for an assessment year which is pending before the 2[Assessing Officer] or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical with a question of law arising in his case for another assessmen t year which is pending before the High Court or the Supreme Court on a reference under section 27 3[or in appeal under section 27A before the High Court] or in appeal before the Supreme Court under section 29 (such case being hereafter in this section ref erred to as the other case), he may furnish to the 2[Assessing Officer] or the appellate authority, as the case may be, a declaration in the prescribed form and verified in the prescribed manner, that if the 2[Assessing Officer] or the appellate authority, as the case may be, agrees to apply to the relevant case the final decision on the question of law in the other case, he shall not raise such question of law in the relevant case in appeal before any appellate authority or 4[in appeal before the High Cour t under section 27A or the Supreme Court under section 29]. (2) Where a declaration under sub -section ( 1) is furnished to any appellate authority, the appellate authority shall call for a report from the 2[Assessing Officer] on the correctness of the claim made by the assessee and, where the 2[Assessing Officer] makes a request to the appellate authority to give him an opportunity of being heard in the matter, the appellate authority shall allow him such opportunity. (3) The 2[Assessing Officer] or the appe llate authority, as the case may be, may, by order in writing, (i) admit the claim of the assessee if he or it is satisfied that the question of law arising in the relevant case is identical with the qu estion of law in the other case ; or (ii) reject the claim if he or it is not so satisfied. (4) Where a claim is admitted under sub -section ( 3), (a) the 2[Assessing Officer] or, as the case may be, the appellate authority may make an order disposing of the relevant case without awaiting the final decis ion on the qu estion of law in the other case; and 1. Ins. by Act 67 of 1984, s. 59 (w.e.f. 1 -10-1984). 2. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. Ins. by Act 20 of 2002, s. 111 (w.e.f. 1 -6-2002). 4. Subs. by s. 111, ibid., for for a reference before the High Court or the Supreme Court under section 27 or in appeal before the Supreme Court under section 29 (w.e.f.1 -6-2002). 41 (b) the assessee shall not be entitled to raise, in relation to the relevant case, such question of law in appeal before any appellate authority or 1[in appeal before the High Court under section 27A or the Supreme Court under section 29]. (5) When the decision on the question of law in the other case becomes final, it shall be applied to the relevant case and the 2[Assessing Officer] or the appellate authority, as the case may be, shall, if necessary, amend the order referred to in clause ( a) of sub -section ( 4) conformably to such decision. (6) An order under sub -section ( 3) shall be final and shall not be called in question in any proceeding by way of appeal, reference or revision under this Act. Explanatio n.In this section, (a) appellate authority means the 3[Deputy Commissioner (Appeals)], or the Commissioner (Appeals) or the Appellate Tribunal ; (b) case, in relation to an assessee, means any proceeding under this Act for the assessment of the net w ealth of the assessee or for the imposition of any penalty on him.] CHAPTER IVB CHARGE OF ADDITIONAL WEALTH -TAX IN CERTAIN CASES 18D. [Additional wealth -tax].Omitted by the Direct Tax Laws (Amendment ) Act, 1989 (3 of 1989) , s. 95 (w.e.f . 1-4-1989. Earlier it was inserted by the Direct Tax Laws (Amendment ) Act, 1987 (4 of 1988)) , s. 143 (w.e.f. 1-4-1989). CHAPTER V LIABILITY TO ASSESSMENT IN SPECIAL CASES 19. Tax of deceased person payable by legal representative. (1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth -tax assessed as payable by such person, or any sum, which would have been payable by him under this Act if he had not died. (2) Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the 2[Assessing Officer] has reason to believe to be incorrect or incomplete, the 2[Assessing Officer] may make an assessment of the net wealth of such person and determine the wealth -tax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice w hich would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of sectio n 16 have been required from the deceased person. (3) The provisions of sections 14, 15 and 17 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in those sections. 4[19A. Assessment in the case of executors. (1) Subject as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or executors. (2) The executor or executors shall for the purposes of this Act be treated as an ind ividual. 1. Subs. by Act 20 of 2002, s. 111, for for a reference before the High Court or the Supreme Court under section 27 or in ap peal before the Supreme Court under section 29 (w.e.f.1 -6-2002). 2. Subs. by Act 4 of 1 988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. Subs. by s. 127, ibid. for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 4. Ins. by Act 46 of 1964, s. 19 (w.e.f. 1 -4-1965). 42 (3) The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death. (4) The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19. (5) Separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests. (6) In computing the net wealth on any valuatio n date under this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legatee on any valuation date, be included in the net wealth of such specific legatee on that valuation date. Explanation. In this section, executor includes an administrator or other person administering the estate of a deceased person.] 20. Assessment after partition of a Hindu undivided family. (1) Where, at the time of making an assessment, it is brought to the notice of the 1[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the 1[Assessing Officer], after inquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or group of members in definite portions, he shall record an order to that effect and shall make assessment on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of member s shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such. (2) Where the 1[Assessing Officer] is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes of this Act to c ontinue to be a Hindu undivided family liable to be assessed as such. 2[20A. Assessment after partial partition of a Hindu undivided family. Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivi ded family hitherto assessed as undivided, (a) such family shall continue to be liable to be assessed under this Act as if no such pa rtial partition had taken place ; (b) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition ; (c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition, and the provisio ns of this Act shall apply accordingly. Explanation. For the purposes of this section, partial partition shall have the meaning assigned to it in clause ( b) of the Explanation to section 171 of the Income -tax Act.] 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w. e.f. 1 -4-1988). 2. Ins. by Act 44 of 1980, s. 39 (w.e.f. 1 -4-1980). 43 21. Assessment when assets are held by courts of wards, administrators -general, etc.(1) 1[Subject to the provisions of sub -section (

by courts of wards, administrators -general, etc.(1) 1[Subject to the provisions of sub -section ( 1A), in the case of assets chargeable to tax under this Act], which are held by a court of wards or an administrator -general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trustee appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth -tax shall be levied upon and r ecoverable from the court of wards, administrator -general, official trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person 2[on whose behalf or for w hose benefit] the assets are held, and the provisions of this Act shall apply accordingly. 3[Explanation. A trust which is not declared by a duly executed instrument in writing (including a valid deed of wakf) shall be deemed, for the purposes of this sub -section, to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee or trustees, setting out the purpose or purposes of the trust, particulars as to the trustee or trustees, the beneficiary or beneficia ries and the trust property, is forwarded to the 4[Assessing Officer], (i) where the trust has been declared before the 1st day of June, 1981, within a perio d of three months from that day ; and (ii) in any other case, within three months from the date of declaration of the trust.] 5[(1A) Where the value or aggregate value of the interest or interests of the person or persons on whose behalf or for whose benefit such assets are held falls short of the value of any such assets, then, in addition to the wealt h-tax leviable and recoverable under sub -section ( 1), the wealth -tax shall be levied upon and recovered from the court of wards, administrator -general, official trustee, receiver, manager or other person or trustee aforesaid in respect of the value of such assets, to the extent it exceeds the value or aggregate value of such interest or interests, as if such excess value were the net wealth of an individual who is a citizen of India and resident in India for the purposes of this Act, and (i) at the rates s pecified in Part I of Schedule I; or (ii) at the rate of three per cent ., whichever course would be more beneficial to the revenue.] (2) Nothing contained in sub -section ( 1) shall prevent either the direct assessment of the person 2[on whose behalf or for whose benefit] the assets above referred to are held, or the recovery from such person of the tax payable in respect of such assets. (3) Where the guardian or trustee of any person being a minor, lunatic or idiot 6*** holds any assets 7[on behalf or for th e benefit of such beneficiary ], the tax under this Act shall be levied upon and recoverable from such guardian or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from any such beneficiary if of full age, of sound mind and in direct ownership of such assets. 1. Subs. by Act 44 of 1980, s. 40, for In the case of assets chargeable to tax under this Act (w.e.f. 1 -4-1980). 2. Subs. by Act 46 of 1964, s. 20, for on whose behalf (w.e.f. 1 -4-1965 ). 3. Ins. by Act 16 of 1981, s. 26 (w.e.f. 1 -4-1981). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 5. Ins. by Act 44 of 1980, s. 40 (w.e.f. 1 -4-1980). 6. The brackets and words (all of which persons are hereinafter in th is sub -section included in the term beneficiary) omitted by Act 46 of 1964, s. 20 (w.e.f. 1 -4-1965). 7. Subs. by s. 20, ibid., for on behalf of such beneficiary (w.e.f. 1 -4-1965). 44 1[(4) 2[Notwithstanding anything contained in the foregoing provisions of this section ], where the shares of the persons on whose behalf or for whose benefit any such assets are held are indeterminate or unknown, the wealth -tax shall be levied upon and recovered from the court of wards, administrator - general, official trustee, receiver, manager, or other person aforesaid 3[, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India] for the purposes of this Act, and (a) at the rates specified in Part I of 4[Schedule I] 5***; or (b) at the rate of 6[three per cent .], whichever course would be more beneficial to the revenue : Provided that in a case where (i) such assets are held 7[under a trust declared by any person by will and such trust is the only trust so declared by him]; or 8[(ia) none of the beneficiaries has net wealth exceeding the amount not chargeable to wealth -tax in the case of an individual who is a citizen of India and resident in India for the purposes of this Act or is a beneficiary under any other trust; or] (ii) such assets are held under a trust created before the 1st day of March, 1970, by a non - testamentary instrument and the 9[Assessing Officer] is satisfied, having regard to all the circumstances existing at the relevant time, that the t rust was created bona fide exclusively for the benefit of the relatives of the settlor or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance; or (iii) such assets are held by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a busines s or profession exclusively for the benefit of persons employed in such business or profession, wealth -tax shall be charged at the rates specified in Part I of 4[Schedule I] 5***.] 8[Explanation 1.For the purposes of this sub -section, the shares of the pe rsons on whose behalf or for whose benefit any such assets are held shall be deemed to be indeterminate or unknown unless the shares of the persons on whose behalf or for whose benefit such assets are held on the relevant valuation date are expressly state d in the order of the court or instrument of trust or deed of wakf, as the case may be, and are ascertainable as such on the date of such order, instrument or deed.] 1. Subs. by Act 19 of 1970, s. 26, for sub -section ( 4) (w.e.f. 1 -4-1971) . Earlier it was amended by Act 46 of 1964, s. 20 (w.e.f. 1 -4-1965). 2. Subs. by Act 16 of 1981, s. 26, for Notwithstanding anything contained in this section (w.e.f. 1 -4-1981). 3. Subs. by Act 44 of 1980, s. 40, for as if the persons on whose behalf or for whose benefit assets are held were an individual who is a citizen of India and resident in India (w.e.f. 1 -4-1980). 4. Subs. by Act 66 of 1976, s. 27, for the Schedule (w.e.f. 1 -4-1977). 5. The words in the cas e of an individual omitted by Act 32 of 1971, s. 34 (w.e.f. 1 -4-1972). 6. Subs. by Act 44 of 1980, s. 40, for one and one -half per cent. (w.e.f. 1 -4-1980). 7. Subs. by s. 40, ibid., for under a trust declared by him (w.e.f. 1 -4-1980). 8. Ins. by Act s . 40, ibid. (w.e.f. 1 -4-1980). 9. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 45 1[2[Explanation 2].Notwithstanding anything contained in section 5, in computing the net wealth 3[for the purposes of this sub -section or sub -section ( 4A) in any case, not being a case referred to in the proviso to this sub -section], any assets referred to in clauses ( xv), (xvi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii ) and (xxix) of sub -section ( 1) of that section shall not be excluded.] 4[(4A) Notwithstanding anything contained in this section, where the assets chargeable to tax under this Act are held by a trustee under an oral trust, the wealth -tax shall be levied upon and recovered from such trustee in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the purposes of this Act, and (a) at the rates specified in Part I of Schedule I; or (b) at the rate of three per cent ., whichever course would be more beneficial to the revenue. Explanation. For the purposes of this sub -section, oral trust means a trust which is not declared by a duly exe cuted instrument in writing (including a valid deed of wakf) and which is not deemed under the Explanation to sub -section ( 1) to be a trust declared by a duly executed instrument in writing.] 5[(5) Any person who pays any sum by virtue of the provisions of this section in respect of the net wealth of any beneficiary, shall be entitled to recover the sum so paid from such beneficiary, and may retain out of any assets that he may hold on behalf or for the benefit of such beneficiary, an amount equal to the su m so paid. Explanation .In this section, the term beneficiary means any person including a minor, lunatic or idiot on whose behalf or for whose benefit assets are held by any other person.] 6[(6) Nothing contained in this section shall apply to and in re lation to any assessment for the assessment year commencing on the 1st day of April, 1993 or any subsequent assessment year.] 7[21A. Assessment in cases of diversion of property, or of income from property, held under trust for public charitable or religious purposes. 8[Notwithstanding anything contained in clause ( i) of section 5, where any property is held] under trust for any public purpose of a charitable or religious nature in India and 9[(i) any part of such property or any income of such tru st [whether derived from such property or from voluntary contributions referred to in sub -clause ( iia) of clause ( 24) of section 2 of the Income -tax Act] is used or applied, directly or indirectly, for the benefit of 10[any person referred to in sub -section (3) of section 13 of the Income -tax Act], or 1. Ins. by Act 32 of 1971, s. 34 (w.e.f. 1 -4-1972). 2. Explanation renumbered as Explanation 2 thereof by Act 44 of 1980, s. 40 (w.e.f. 1 -4-1980). 3. Subs. by Act 16 of 1981, s. 26, for for the purposes of this sub -section in any case, not being a case referred to in the proviso (w.e.f. 1 -4-1981). 4. Ins. by s. 26, ibid. (w.e.f. 1 -4-1981). 5. Ins. by Act 46 of 1964, s. 20 (w.e.f. 1 -4-1965). 6. Ins. by Act 18 of 1992, s. 94 (w.e.f. 1 -4-1993). 7. Ins. by Act 16 of 1972, s. 46 (w.e.f. 1 -4-1973). 8. Subs. by Act 33 of 1996, s. 58, for Where any property is held (w.r.e.f. 1 -4-1993). Earlier the quoted words were substituted by Act 18 of 1992, s. 95, for Notwithstanding anything contained in clause ( i) of sub -section ( 1) of section 5, where any property is held (w.e.f. 1 -4-1993). 9. Subs. by Act 21 of 1984, s. 34, for certain words (w.e.f. 1 -4-1985). 10. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier the words any interested person was substituted by Act 4 of 1988, s. 144, for the given expression (w.e.f. 1 -4-1989). 46 (ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub -clause ( iia) of clause ( 24) of section 2 of the Income -tax Act], being a trust c reated on or after the 1st day of April, 1962, enures, directly or indirectly, for the benefit of 1[any person referred to in sub -section ( 3) of section 13 of the said Act, or] 2[(iii) any funds of the trust are invested or deposited, or any shares in a company are held by the trust, in contravention of the provision of clause ( d) of sub -section ( 1) of section 13 of the Income -tax Act,] wealth -tax shall be leviable upon, and recoverable from, the trustee or manager (by whatever name

Act,] wealth -tax shall be leviable upon, and recoverable from, the trustee or manager (by whatever name called) in the like manner and to the same extent as if the property were held by an individual who is a citizen of India and resident in India for the purposes of this Act 3***:] Provid ed that in the case of a trust created before the 1st day of April, 1962, the provisions of clause (i) shall not apply to any use or application, whether directly or indirectly, of any part of such property or any income of such trust for the benefit of 4[any person referred to in sub -section ( 3) of section 13 of the Income -tax Act], if such use or application is by way of compliance wit h a mandatory term of the trust : 5* * * * * 6[7[Provided further that], 8[(a) in the case of any association referred to in clause ( 21) of section 10 of the Income -tax Act, (i) the provisions of clause ( i) and clause ( ii) shall not apply; and (ii) the other provisions of this section shall apply with the modifications that, (1) for the words, brackets, letter and figures in contravention of the provisions of clause ( d) of sub -section ( 1) of section 13 of the Income -tax Act, the words, brackets and figures in contravention of the provisions contained in the proviso to clause ( 21) of section 10 of the Income -tax Act had been substituted; and (2) for the words at the maximum marginal rate, the words and figures at the rates specified in 9[sub-section ( 2) of section 3] had been substituted;] (b) in the case of any institution, fund or trust refe rred to in clause ( 22) or clause ( 22A) or clause ( 23B) or clause ( 23C) of section 10 of the Income -tax Act, the provisions of 10[clauses ( i) to (iii)] shall not apply.] 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier the words any interested person, was substituted by Act 4 of 1988, s. 144, for the given expression (w.e.f. 1 -4-1989). 2. Restored by s. 95, ibid. (w.e.f. 1 -4-1989). Earlier clause ( iii) was omitted by Act 4 of 1988, s. 144 (w.e.f. 1 -4-1989). 3. The words but without excluding the value of any asset under sub -section ( 1) of section 5, and at the maximum marginal rate omitted by Act 18 of 1992, s. 95 (w.e.f. 1 -4-1993). 4. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier the words any interested person was substituted by Act 4 of 1988, s. 144, for t he given expression (w.e.f. 1 -4-1989). 5. The second proviso omitted by Act 18 of 1992, s. 95 (w.e.f. 1 -4-1993). Earlier the second proviso was amended by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989) and Act 4 of 1988, s. 144 (w.e.f. 1 -4-1989). 6. Ins. by Act 21 of 1984, s. 34 (w.e.f. 1 -4-1985). 7. Subs. by Act 18 of 1992, s. 95, for Provided also that (w.e.f. 1 -4-1993). 8. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier clause ( a) was substituted by Act 4 of 1988, s. 144 (w.e.f. 1 -4-1989). 9. Subs. by Act 18 of 1992, s. 95, for Part I of Schedule I in the case of an individual (w.e.f. 1 -4-1993). 10. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier clauses ( i) and ( ii) was substituted by Act 4 of 1988, s. 1 44, for the given expression (w.e.f. 1 -4-1989). 47 Explanation. For the purposes of this section, 1[(a) any part of the property or income of a trust shall be deemed to have been used or applied for the benefit of any person referred to in sub -section ( 3) of section 13 of the Income -tax Act in every case in which it can be so deemed to have been used or applied within the m eaning of clause ( c) of sub -section ( 1) of that section at any time during the period of twelve months ending with the relevant valuation date; 2* * * * *] (b) trust includes any other legal obligation.] 3[21AA. Assessment when assets are held by certain associations of persons. (1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or co - operative society 4[or society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India], and the individual shares of the members of the said association in the income or assets or both of th e said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth -tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recov erable from an individual who is a citizen of India and resident in India for the 5[purposes of this Act 6***]. (2) Where any business or profession carried on by an association of persons referred to in sub - section ( 1) has been discontinued or where such association of persons is dissolved, the 7[Assessing Officer] shall make an assessment of the net wealth of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of penalty or any other sum chargeable under any provisions of this Act, so far as may be, shall apply to such assessment. (3) Without prejudice to the generality of the provisions of sub -section ( 2), if the 7[Assessing Officer] or the 8[Deputy Commissioner (Appeals)] or the Commissioner (Appeals) in the course of any proceedings under this Act in respect of any such association of persons as is referred to in sub -section ( 1) is satisfied that the association of persons was guilty of an y of the acts specified in section 18 or section 18A, he may impose or direct the imposition of a penalty in accordance with the provisions of the said sections. (4) Every person who was at the time of such discontinuance or dissolution a member of the association of persons, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act, so far as may be, shall apply to any such a ssessment or imposition of penalty or other sum. (5) Where such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly. 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). Earlier clause ( a) and ( ab) was substituted by Act 4 of 1988, s. 144, for clause ( a) and ( aa) (w.e.f. 1 -4-1989). 2. Clause ( aa) omitted by Act 18 of 1992 , s. 95 (w.e.f. 1 -4-1993). Earlier it was inserted by Act 21 of 1984, s. 34 (w.e.f. 1 -4-1985). 3. Ins. by Act 16 of 1981, s. 27 (w.e.f. 1 -4-1981). 4. Ins. by Act 13 of 1989, s. 29 (w.e.f. 1 -4-1989). 5. Subs. by Act 4 of 1988, s. 145, for certain words (w.e.f. 1 -4-1989). 6. The words , and at the maximum marginal rate omitted by Act 18 of 1992, s. 96 (w.e.f. 1 -4-1993). 7. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 8. Subs. by s. 127, ibid., for A ppellate Assistant Commissioner (w.e.f. 1 -4-1988). 48 1* * * * *] 22. Assessment of persons residing outside India. (1) Where the person liable to tax under this Act resides outside India, the tax may be levied upon and recovered from his agent, and the agent shall be deemed to be, for all the purposes of this Act, the assessee in respect of such tax. (2) Any person employe d by or on behalf of a person referred to in sub -section ( 1) or through whom such person is in the receipt of any income, profits or gains, or who is in possession or has custody of any asset of such person and upon whom the 2[Assessing Officer] has caused a notice to be served of his intention of treating him as the agent of such person shall, for the purposes of sub -section ( 1), be deemed to be the agent of such person. 3* * * * * 4[(3) No person shall be deemed to be the agent of any person resid ing outside India unless he has had an opportunity of being heard by the 2[Assessing Officer] as to his being treated as such. (4) Any agent, who, as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on whose b ehalf it is paid or to retain out of any moneys that may be in his possession or may come to him in his capacity as such agent, an amount equal to the sum so paid. (5) Any agent, or any person who apprehends that he may be assessed as an agent, may retain out of any money payable by him to the person residing outside India on whose behalf he is liable to pay tax (hereinafter in this section referred to as the principal), a sum equal to his estimated liability under this section, and in the event of any disa greement between the principal and such agent or person, as to the amount to be so retained, such agent or person may secure from the 2[Assessing Officer] a certificate stating the amount to be so retained pending final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that amount. (6) The amount recoverable from such agent or person at the time of final settlement shall not exceed the amount specified in such certificate, except to the extent to which such agen t or person may at such time have in his hands additional assets of the principal. (7) Notwithstanding anything contained in this section, any arrears of tax due from a person residing outside India may be recovered also in accordance with the provisions of this Act from any assets of such person which are or may at any time come within India. ] 5[CHAPTER VA SETTLEMENT OF CASES 6[22A. Definitions. In this Chapter, unless the context otherwise requires, (a) Bench means a Bench of the Settlement Commission; 7[(b) case means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub -section ( 1) of s ection 22C is made: 1. The Explanation omitted by Act 18 of 1992, s. 96 (w.e.f. 1 -4-1993). 2. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. The proviso omitted by Act 46 of 1964, s. 21 (w.e.f . 1-4-1965). 4. Ins. by s. 21, ibid. (w.e.f. 1 -4-1965). 5. Ins. by Act 41 of 1975, s. 93 (w.e.f. 1 -4-1976). 6. Subs. by Act 11 of 1987, s. 77, for section 22A (w.e.f. 1 -6-1987). 7. Subs. by Act 22 of 2007, s. 84, for clause ( b) (w.e.f. 1 -6-2007). 49 1* * * * * Explanation. For the purposes of this clause (i) a proceeding for assessment or reassessment referred to in 2[section 17 shall, in case where a notice under the said section] is issued but not on the basis of search under section 37A or requisition under section 37B, be deemed to have commenced from the date on which a notice under section 17 is issued; 3[(ii) a proceeding for making fresh assessment in pursuance of an order under section 23A or section 24 or section 25, setting aside or cancelling an assessment shall be deemed to have been commenced from the date on which such order, setting aside or cancelling an assessment was passed.] 4[(iii) a proceeding for assessment or reassessment for any of the assessment years, in consequence of a search initiated under section 37

for assessment or reassessment for any of the assessment years, in consequence of a search initiated under section 37A or requisition made under section 37B, shall be deemed to have commenced on the date of issue of notice initiating such proceedings and concluded on the d ate on which the assessment is made;] (iv) a proceeding for assessment for an assessment year, other than the proceeding of assessment or reassessment referred to in 5[clause ( i) or clause ( ii) clause ( iii)], shall be deemed to have commenced from the 1st day of the assessment year and concluded on the date on which the assessment is made;] (c) Chairman means the Chairman of the Settlement Commission; (d) Member means a Member of the Settlement Commission, and includes t he Chairman and a Vice -Chairman ; (e) Settlement Commission means the Income -tax Settlement Commission constituted under section 245B of the Income -tax Act; (f) Vice -Chairman means a Vice -Chairman of the Settlement Commission 6[and includes a Member who is senior amongst the Members of a Bench ]; (g) wealth -tax authority means an income -tax authority specified in section 116 of the Income - tax Act who is treated as a wealth -tax authority under section 8.] 22B. Wealth -tax Settlement Commission. (1) The Central Government shall constitute a Commission to be called the Wealth -tax Settlement Commission 7*** for the settlement of cases under this Chapter. (2) The Settlement Commission shall consist of a Chairman 8[and as many Vice -Chairmen and other members as the Central Government thinks fit] and shall function within the Department of the Central Government dealing with direct taxes. 1. The proviso omitted by Act 25 of 2014, s. 77 (w.e.f. 1 -10-2014). Earlier it was amended by Act 14 of 2010, s. 53 (w.e.f. 1 -6-2010). 2. Subs. by s. 77, ibid., for clause ( i) of the proviso shall, in case where a notice under section 17 (w.e.f. 1 -10-2014). 3. Subs. by s. 77, ibid., for clause ( ii) (w.e.f. 1 -10-2014). 4. Subs. by Act 14 of 2010, s. 53, for clasue ( iii) (w.e.f. 1 -6-2010). 5. Subs. by Act 25 of 2014, s. 77, for clause ( i) or clause ( ii) of the proviso or clause ( iii) of the Explanation (w.e.f. 1 -10-2014). Ealier it was amended by Act 14 of 2010, s. 53 (w.e.f. 1 -6-2010). 6. Ins. by Act 22 of 2007, s. 84 (w.e.f. 1 -6-2007). 7. The brackets and words (hereafter in this Chapter referr ed to as the Settlement Commission) omitted by Act 11 of 1987, s. 78 (w.e.f. 1 -6-1987). 8. Subs. by Act 46 of 1986, s. 35, for and two other members (w.e.f. 10 -9-1986). 50 1* * * * * (3) The Chairman 2[, Vice -Chairman] and other members of the Settlement Commission shall be appointed by the Central Government from amongst persons of integrity and outstanding ability, having special knowledge of, and experience in, problems relating to direct taxes and business accounts: Provided that, where a member of the Board is appointed as the Chairman 2[, Vice -Chairman] o r as a member of the Settlement Commission, he shall cease to be a member of the Board. 3* * * * * 4[22BA. Jurisdiction and powers of Settlement Commission. (1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof. (2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice -Chairman and shall consist of two other Members. (3) The Bench for which the Ch airman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches. (4) Notwithstanding anything contained in sub -sections ( 1) and ( 2), the Chairman may authorise the Vice -Chairman or other Member appoin ted to one Bench to discharge also the functions of the Vice -Chairman or, as the case may be, other Member of another Bench. (5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurren ce of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons , the senior among the remaining persons shall act as the Presiding Officer of the Bench : Provided that if at any stage of the hearing of any case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to b e heard by a Bench consisting of three Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit. 5[(5A) Notwithstanding anything contained in the foregoing pr ovisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members.] (6) Subject to the other provisions of this Chapter, the places at which the principal Bench and the additional Benches shall ordinarily sit, shall be such as the Central Government may, by notification in the Official Gazette, specify 5[and the Special Bench shall sit at a place to be fixed by the Chairman ]. 1. Sub -section ( 2A) omitted by Act 46 of 1986, s. 35 (w.e.f. 10 -9-1986). Earlier s ub-section ( 2A) was inserted by Act 14 of 1982, s. 36 (w.e.f. 1 -4-1982). 2. Ins. by s. 35, ibid. (w.e.f. 10 -9-1986). 3. The second proviso omitted by s. 35, ibid. (w.e.f. 10 -9-1986). 4. Ins. by Act 11 of 1987, s. 79 (w.e.f. 1 -6-1987). 5. Ins. by Act 49 of 1991, s. 77 (w.e.f. 1 -10-1991). 51 22BB. Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances. (1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the Vice - Chairman or, as the case may be, such one of the Vice -Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon h is office. (2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice -Chairman or, as the case may be, such one of the Vice -Chairmen as the Central Government may, by notification in the Official Gazet te, authorise in this behalf, shall discharge the functions of the Chairman until the date on which t he Chairman resumes his duties. 22BC. Power of Chairman to transfer cases from one Bench to another. On the application of the assessee or the 1[Chief Comm issioner or Commissioner] and after notice to them, and after hearing such of them as may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one Bench, for disposal, to another Bench. 22BD. Decis ion to be by majority. 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 wh ich they differ, and make a reference to the Chairman 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 of the Settlement Commission and such point or points shall be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it. ] 22C. Application for settlement of cases. 2[(1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his wealth which has not been disclosed before the 3[Assessing Officer], the manner in which such wealth has been derived, the addit ional amount of wealth -tax payable on such wealth and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided : 4[Provided that no s uch application shall be made unless such wealth -tax and the interest thereon, which would have been paid under the provisions of this Act had the wealth declared in the application been declared in the return of wealth before the Assessing Officer on the date of application, has been paid on or before the date of making the application and the proof of such payment is attached with the application.] (1A) For the purposes of sub -section ( 1) of this section 5*** the additional amount of wealth -tax payable in respect of the wealth disclosed in an application made under sub -section ( 1) of this section shall be the amount calculated in accordance with the provisions of sub -sections ( 1B) to ( 1D). 6[7[(1B) Where the wealth disclosed in the application relates to only one previous year, (i) if the applicant has not furnished a return in respect of the net wealth of that year, then, wealth -tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth; 1. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 2. Subs. by Act 67 of 1984, s. 60, for sub -section ( 1) (w.e.f. 1 -10-1984). 3. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988 ). 4. Subs. by Act 22 of 2007, s. 85, for the proviso (w.e.f. 1 -6-2007). Earlier it was inserted by Act 11 of 1987, s. 80 (w.e.f. 1 -6-1987). 5. The words, brackets, figures and letters and sub -sections ( 2A) to ( 2D) of section 22D omitted by s. 85, ibid. (w.e.f. 1 -6- 2007). 6. Subs. by Act 11 of 1987, s. 80, for sub -sections ( 1B) and ( 1C) (w.e.f. 1 -6-1987). 7. Subs. by Act 22 of 2007, s. 85, for sub -section ( 1B) (w.e.f. 1 -6-2007). 52 (ii) if the applicant has furnished a return in respect of the net wealth of that year, wealth -tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth.] (1C) The additional amount of wealth -tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub -section ( 1B) shall be, (a) in a case referred to in clause ( i) of that sub -section, the amount of wealth -tax cal culated under that clause; (b) in a case referred to in clause ( ii) of that sub -section, the amount of wealth -tax calculated under that clause as reduced by the amount of wealth -tax calculated on the ne t wealth returned for that year ; 1* * * * *] (1D) Where the wealth disclosed in the application relates to more than one assessment year, the additional amount of wealth -tax payable in respect of the wealth disclosed for each of the years shall first be calculated in accordance with the provisions of s ub-sections ( 1B) and ( 1C) and the aggregate of the amount so arrived at in respect of each of the years for which the application has been made under sub-section ( 1) shall be the additional amount of wealth -tax payable in respect of the wealth disclosed in the application. (1E) Where any books of account or other documents belonging to an assessee are seized under section 37A, the assessee shall not be entitled to make an application under sub -section ( 1) before the expiry of one hundred and twe nty days from the date of the seizure. ] (2) Every application made under sub -section ( 1) shall be accompanied by such fees as may be prescribed. (3) An application made under sub -section ( 1) shall not be allowed to be withdrawn by the applicant. 2[(4) An a ssessee shall, on the date on which he makes an application under sub -section ( 1) to the Settlement Commission, also intimate the Assessing Officer in the prescribed manner of having made such application to the said Commission.] 22D. Procedure on receipt of an application under section 22C. 3[(1) On receipt of an application under section 22C, the Settlement Commission shall, within seven days from the date of receipt of the application, issue a notice to the applicant requiring him to explain

Settlement Commission shall, within seven days from the date of receipt of the application, issue a notice to the applicant requiring him to explain as to why th e application made by him be allowed to be proceeded with, and on hearing the applicant, the Settlement Commission shall, within a period of fourteen days from the date of the application, by an order in writing, reject the application or allow the applica tion to be proceeded with: Provided that where no order has been passed within the aforesaid period by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with.] 4* * * * * 1. Clause ( c) omitted by Act 22 of 2007, s. 85 (w.e.f. 1-6-2007). 2. Ins. by s. 85, ibid. (w.e.f.1 -6-2007). 3. Subs. by s. 86, ibid., for sub -section ( 1) (w.e.f. 1 -6-2007). Earlier it was amended by Act 49 of 1991, s. 78 (w.e.f. 27 -9-1991) and Act 20 of 2002, s. 112 (w.e.f. 1 -6-2002). 4. Sub -section ( 1A) omit ted by Act 49 of 1991, s. 78 (w.e.f. 27 -9-1991). Earlier it was inserted by Act 21 of 1979, s. 24 (w.e.f. 1 -4-1979). 53 (2) A copy of every order under sub-section ( 1) shall be sent to the applicant and to the Commissioner. 1[(2A) Where an application was made under section 22C before the 1st day of June, 2007 but an order under the provisions of sub -section ( 1) of this section, as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007) , has not been made before the 1st day of June, 2007, such application shall be deemed to have been allowed to be proceeded with if the additional wealth -tax on the wealth disclosed in such appli cation and the interest thereon is paid on or before the 31st day of July, 2007. Explanation. In respect of the applications referred to in this sub -section, the 31st day of July, 2007 shall be deemed to be the date of the order of rejection or allowing th e application to be proceeded with under sub -section ( 1). (2B) The Settlement Commission shall, (i) in respect of an application which is allowed to be proceeded with under sub -section ( 1), within thirty days from the date on which the application was made; or (ii) in respect of an application referred to in sub -section ( 2A) which is deemed to have been allowed to be proceeded with under that sub -section, on or before the 7th day of August, 2007, call for a report from the Commissioner, and the Commissioner shall furnish the report within a period of thirty days of the receipt of communication from the Settlement Commission. (2C) Where a report of the Commissioner called for under sub -section ( 2B) has been furnished within the period specified therein, the Settlement Commission may, on the basis of the material contained in such report and within a period of fifteen days of the receipt of the report, by an order in writing, declare the application in qu estion as invalid, and shall send the copy of such order to the applicant and the Commissioner: Provided that an application shall not be declared invalid unless an opportunity has been given to the applicant of being heard: Provided further that where the Commissioner has not furnished the report within the aforesaid period, the Settlement Commission shall proceed further in the matter without the report of the Commissioner. (2D) Where an application was made under sub -section ( 1) of section 22C before the 1st day of June, 2007 and an order under the provisions of sub -section ( 1) of this section, as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007) , allowing the application to have been proceeded with, has been passed befor e the 1st day of June, 2007, but an order under the provisions of sub-section ( 4), as they stood immediately before their amendment by the Finance Act, 2007, was not passed before the 1st day of June, 2007, such application shall not be allowed to be furth er proceeded with unless the additional wealth -tax on the wealth disclosed in such application and the interest thereon, is, notwithstanding any extension of time already granted by the Settlement Commission, paid on or before the 31st day of July, 2007.] 2[(3) The Settlement Commission, in respect of (i) an application which has not been declared invalid under sub -section ( 2C); or 1. Subs. by Act 22 of 2007, s. 86, for sub -sections ( 2A), (2B), (2C) and ( 2D) (w.e.f. 1 -6-2007). 2. Subs. by s. 86, ibid., for sub -sections ( 3) (4) and ( 4A) (w.e.f. 1 -6-2007). Earlier sub -section ( 4A) was inserted by Act 20 of 2002, s. 112 (w.e.f. 1 -6-2002). 54 (ii) an application referred to in sub -section ( 2D) which has been allowed to be further proceeded with under that sub-section, may call for the records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Commissioner to make o r cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case, and the Commissioner shall furnish the report within a period of ninety days of the receipt o f communication from the Settlement Commission: Provided that where the Commissioner does not furnish his report within the aforesaid period, the Settlement Commission may proceed to pass an order under sub -section ( 4) without such report. (4) After examination of the records and the report of the Commissioner, if any, received under (i) sub-section ( 2B) or sub -section ( 3), or (ii) the provisions of sub -section ( 1), as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007 ), and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, th e Settlement Commission may, in accordance with the provisions of this Act, pass such order, as it thinks fit, on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner. (4A) The Settlement Commission shall pass an order under sub -section ( 4), (i) in respect of an application referred to in sub -section ( 2A) or sub -section ( 2D), on or before the 31st day of March, 2008; (ii) in respect of an applicati on made on or after the 1st day of June, 2007 1[but before the 1st day of June, 2010], within twelve months from the end of the month in which the application was made; 2[(iii) in respect of an application made on or after the 1st day of June, 2010, within eighteen months from the end of the month in which the application was made.] ] 3[(5) Subject to the provisions of section 22BA, the materials brought on record before the Settlem ent Commission shall be considered by the Members of the concerned Bench before passing any order under sub-section (4) and, in relation to the passing of such order, the provisions of section 22BD shall apply.] (6) Every order passed under sub -section ( 4) shall provide for the terms of settlement including any demand by way of 4[tax, penalty or interest], the manner in which any sum due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or misrepresentation of facts. 1. Ins. by Act 14 of 2010, s. 54 (w.e.f. 1 -4-2010). 2. Ins. by s. 54, ibid. (w.e.f. 1 -6-2010). 3. Ins. by Act 11 of 1987, s. 81 (w.e.f. 1 -6-1987). Earlier it was amended by Act 14 of 1982, s. 37 (w.e.f. 1 -4-1982) which was later omitted by Act 46 of 1986, s. 36 (w.e.f. 10 -9-1986). 4. Subs. by s. 81, ibid., for tax or penalty (w.e.f. 1 -6-1987). Earlier the quoted wo rds were substituted for tax, penalty or interest by Act 67 of 1984, s. 62 (w.e.f. 1 -10-1984). 55 1[(6A) Where any tax payable in pursuance of an order under sub -section ( 4) is not paid by the assessee wit hin thirty -five days of the receipt of a copy of the order by him, then, whether or not the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalments, the assessee shall be liable to pay simple intere st at 2[one and one -fourth per cent . for every month or part of a month] on the amount remaining unpaid from the date of expiry of the period of thirty - five days aforesaid.] 3[(6B) The Settlement Commission may, at any time within a period of six months from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub -section ( 4): Provided that an amendment which has the effect of modifying the liability of the applicant shall not be made un der this sub -section unless the Settlement Commission has given notice to the applicant and the Commissioner of its intention to do so and has allowed the applicant and the Commissioner an opportunity of being heard.] (7) Where a settlement becomes void as provided in sub -section ( 6), the proceedings with respect to the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the wealth -tax authority concerned may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at any time before the expiry of two years from the end of the financial year in which the settlement became void. 1[(8) For the rem oval of doubts, it is hereby declared that nothing contained in section 17A shall apply to any order passed under sub -section ( 4) or to any order of assessment or reassessment required to be made by the 4[Assessing Officer] in pursuance of any directions c ontained in such order passed by the Settlement Commission.] 5[22DD. Power of Settlement Commission to order provisional attachment to protect revenue.(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income -tax Act as made app licable to this Act by section 32: Provided that where a provisional attachment made under section 34C is pending immediately before an application is made under section 22C, an order under this sub -section shall continue such provisional attachment up to the period up to which an order made under section 34C would have continued if such application had not been made: Provided further that where the Settlement Commission passes an order under this sub -section after the expiry of the period referred to in th e preceding proviso, the provisions of sub -section ( 2) shall apply to such order as if the said order had originally been passed by the Settlement Commission. (2) Every provisional attachment made by the Settlement Commission under sub -section ( 1) shall cease to have effect after the expiry of a period of six months from the date of the o rder made under sub - section ( 1): Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or p eriods as it thinks fit 6***.] 1. Ins. by Act 67 of 1984, s. 62 (w.e.f. 1 -10-1984). 2. Subs. by Act 22 of 2007, s. 86, for fifteen per cent. per annum (w.e.f. 1 -4-2008). 3. Ins. by Act 8 o f 2011, s. 35 (w.e.f. 1 -6-2011). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 5. Ins. by Act 26 of 1988, s. 56 (w.e.f. 1 -4-1988). 6. The words , so, however, that the total period of extension shall not in any case exceed two years omitted by Act 22 of 2007, s. 87 (w.e.f. 1 -6-2007). 56 22E. Power of Settlement Commission to reopen completed proceedings. If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pend ing before it, it is necessary or expedient to reopen any proceeding connected with the case, but which has been completed under this Act by any wealth -tax authority before the application under section 22C was made, it may, with the concurrence of the app licant, reopen such proceeding and pass such order thereon as it thinks fit as if the

, with the concurrence of the app licant, reopen such proceeding and pass such order thereon as it thinks fit as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceeding also: 1[Provided that no proceeding shall be reopened by the Settlement Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 22C exceeds nine years:] 2[Provided further that no proceeding shall be reopened by the Settlement Commission under this section in a case where an application under section 22C is made on or after the 1st day of June, 2007.] 22F. Powers and procedure of Settlement Commission. (1) In addition to the powers conferred on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a wealth -tax authority under this Act. (2) Where an application made under section 22C has been allowed to be proceeded with under section 22 D, the Settlement Commission shall, until an order is passed under sub -section ( 4) of section 22D, have, subject to the provisions of sub -section ( 3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of a wealth -tax a uthority under this Act in relation to the case: 3[Provided that where an application has been made under section 22C on or after the 1st day of June, 2007, the Settlement Commission shall have such exclusive jurisdiction from the date on which the applica tion was made: Provided further that where (i) an application made on or after the 1st day of June, 2007, is rejected under sub -section ( 1) of section 22D; or (ii) an application is not allowed to be proceeded with under sub -section ( 2A) of section 22D, or, as the case may be, is declared invalid under sub -section ( 2C) of that section; or (iii) an application is not allowed to be further proceeded with under sub -section ( 2D) of section 22D, the Settlement Commission, in respect of such application shall have such exclusive jurisdiction up to the date on which the application is rejected, or, not allowed to be proceeded with, or, declared invalid, or, not allowed to be further proceeded with, as the case may be.] (3) Notwithstanding anything contained in s ub-section ( 2) and in the absence of any express direction to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation of any other provisions of this Act requiring the applicant to pay tax on the basis of sel f-assessment in relation to the matters before the Settlement Commission. (4) For the removal of doubt, it is hereby declared that, in the absence of any express direction by the Settlement Commission to the contrary, nothing in this Chapter shall affect t he operation of the provisions of this Act in so far as they relate to any matters other than those before the Settlement Commission. 4[5* * * * * 1. Subs. by Act 11 of 1987, s. 82, for the proviso (w.e.f. 1 -6-1987). 2. Ins. by Act 22 of 2007, s. 88 (w.e.f. 1 -6-2007). 3. Ins. by s. 89, ibid. (w.e.f. 1 -6-2007). 4. Subs. by Act 46 of 1986, s. 37, for sub -section ( 5) (w.e.f. 10 -9-1986). 5. Sub -sections ( 5) and ( 6) omitted by Act 11 of 1987, s. 83 (w.e.f. 1 -6-1987). 57 (7) The Settlement Commission shall, subject to the provisions of this Chapter, have power to regulat e its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings.] 22G. Inspection, etc., of reports. No person shall be entitled to inspect, or obtain copies of, any reports made by any wealth -tax authori ty to the Settlement Commission ; but the Settlement Commission may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf and on payment of the prescribed fee: Provided that, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on the record against him in any such report, the Settlement Commission shall, on an application made in this behalf and on payment of the prescribed fee by such person, furnish him with a certified copy of any such report or part thereof relevant for the purpose. 22H. Powers of Settlement Commission to grant immunity from prosecutio n.(1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 22C has co -operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his net wealth and the manner in which such wealth has been acquired, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force 1[and also (either wholly or in part) from the imposition of any penalty] under this Act, with respect to the case covered by the settlement: 2[Provided that no such immunity shall be granted by the Settlem ent Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 22C:] 3[Provided further that the Settlement Commission shall not grant immunity from pr osecution for any offence under the Indian Penal Code (45 of 1860) or under any Central Act other than this Act and Income -tax Act, 1961 (43 of 1961) to a person who makes an application under section 22C on or after the 1st day of June, 2007.] 2[(1A) An i mmunity granted to a person under sub -section ( 1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub -section ( 4) of section 22D within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.] (2) An immunity granted t o a person under sub -section ( 1) may, at any time, be withdrawn by the Settlement Commission, if it is satisfied that such person 4*** had, in the course of the settlement proceedings, concealed any particular material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the impositio n of any penalty under this Act to which such person would have been liable, had no such immunity been granted. 1. Subs. by Act 67 of 1984, s. 63, for and also from the imposition of any penalty (w.e.f. 1 -10-1984). 2. Ins. by Act 11 of 19 87, s. 84 (w.e.f. 1 -6-1987). 3. Ins. by Act 22 of 2007, s. 90 (w.e.f. 1 -6-2007). 4. The words has not complied with the conditions subject to which the immunity was granted or that such person omitted by Act 11 of 1987, s. 84 (w.e.f. 1 -6-1987). 58 1[22HA. Abatement of proceedings before Settlement Commission. (1) Where, (i) an application made under section 22C on or after the 1st day of June, 2007 has been rejected under sub -section ( 1) of section 22D; or (ii) an application made under section 22C has not been allowed to be proceeded with under sub - section (2A) or further proc eeded with under sub -section ( 2D) of section 22D; or (iii) an application made under section 22C has been declared as invalid under sub -section ( 2C) of section 22D; or (iv) in respect of any other application made under section 22C, an order under sub -section ( 4) of section 22D has not been passed within the time or period specified under sub -section ( 4A) of section 22D, the proceedings before the Settlement Commission shall abate on the specified date. Explanation. For the purposes of this sub -section, specified date means (a) in respect of an application referred to in clause ( i), the date on which the application was rejected; (b) in respect of an application referred to in clause ( ii), the 31st day of July, 2007; (c) in respect of an application refer red to in clause ( iii), the last day of the month in which the application was declared invalid; (d) in respect of an application referred to in clause ( iv), the date on which the time or period specified in sub -section ( 4A) of section 22D expires. (2) Whe re a proceeding before the Settlement Commission abates, the Assessing Officer, or, as the case may be, any other wealth -tax authority before whom the proceeding at the time of making the application was pending, shall dispose of the case in accordance wit h the provisions of this Act as if no application under section 22C had been made. (3) For the purposes of sub -section ( 2), the Assessing Officer, or, as the case may be, other wealth -tax authority, shall be entitled to use all the material and other infor mation produced by the assessee before the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it, as if such material, information, inquiry and evidence had bee n produced before the Assessing Officer or other wealth -tax authority or held or recorded by him in the course of the proceedings before him. (4) For the purposes of the time -limit under sections 17A, 32 and 35 and for the purposes of payment of interest u nder section 34A, in case referred to in sub -section ( 2), the period commencing on and from the date of an application to the Settlement Commission under section 22C and ending with specified date referred to in sub -section ( 1) shall be excluded. 22HAA. Credit for tax paid in case of abatement of proceedings. Where an application made under section 22C on or after the 1st day of June, 2007, is rejected under sub -section ( 1) of section 22D, or any other application made under section 22C is not allowed to be proceeded with under sub -section (2A) of section 22D or is declared invalid under sub -section ( 2C) of section 22D or has not been allowed to be further proceeded with under sub -section ( 2D) of section 22D or an order under sub -section ( 4) of section 22D has not been passed within the time or period specified under sub -section ( 4A) of section 22D, the Assessing Officer shall allow the credit for the tax and interest paid on or before the date of making the application or during the pendency of the case be fore the Settlement Commission.] 1. Ins. by Act 22 of 2007, s. 91 (w.e.f. 1 -6-2007). Earlier section 22HA was inserted by Act 11 of 1987, s. 85 (w.e.f. 1 -6-1987) and amended by Act 4 of 1988, s. 127 (w.e.f. 1 -4-1988) which was later omitted by Act 20 of 2002, s. 113 (w.e.f. 1 -6-2002). 59 22-I. Order of settlement to be conclusive. Every order of settlement passed under sub -section ( 4) of section 22D shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force. 22J. Recovery of sums due under order of settlement. Any sum specified in an order of settlement passed under sub -section ( 4) of section 22D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of section 32 by the 1[Assessing Officer] having jurisdiction over the person who made the application for settlement under section 22C. 2[22K. Bar on subsequent application for settlement. (1) Where, (i) an order of settlement passed under sub -section ( 4) of section 22D provides for the imposition of a penalty on the person who made the application under section 22C for settlement, on the ground of concealment of particulars of his net wealth; or (ii) after the passing of an order of settlement under the said sub -section ( 4) in relation to a case, such person is convicted of any offence under Chapter VIII in relation to that case; or (iii) the case of any such person was sent back to the Assessing Officer by the Settlement Commission on or before the 1st day of June, 2002, then, he shall not be entitled to apply for settlement under section 22C in relation to any other matter. (2) Where a person has made an application under section 22C on or after the 1st day of June, 2007 and if such application has been allowed to be proceeded with unde r sub -section ( 1) of section 22D, such person shall not be subsequently entitled to make an application under section 22C.] 22L. Proceedings before the Settlement Commission to be judicial proceedings. Any proceeding under this Chapter before the Settlemen t Commission 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). 22M. [Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications

). 22M. [Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission .]Omitted by the Finance Act, 1987 , s. 87 (w.e.f. 1-6-1987 ). Earlier it was inserted by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976) which was later amended by Act 67 of 1984, s. 64 (w.e.f . 1-10-1984). CHAPTER VI APPEALS, REVISIONS AND REFERENCES 23. Appeal to the 3[Deputy Commissioner (Appeals)] from orders of 1[Assessing Officer .](1) 4[Subject to the provisions of sub -section ( 1A), any person ], (a) objecting to the amount of 5[net wealth ] determined under this Act ; or (b) objecting to the amount of wealth -tax determined as payable by him under this Act ; or 1. Subs. b y Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 2. Subs. by Act 22 of 2007, s. 92, for section 22K (w.e.f. 1 -6-2007). Earlier it was amended by Act 11 of 1987, s. 86 (w.e.f. 1 -6-1987). 3. Subs. by Act 4 of 1988, s . 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 4. Subs. by Act 29 of 1977, s. 39 and the Fifth Schedule, for Any person (w.e.f. 10 -7-1978). 5. Subs. by Act 46 of 1964, s. 22, for his net wealth (w.e.f. 1 -4-1965). 60 (c) denying his liability to be assessed under this Act ; or 1[(d) objecting to any penalty imposed by the Assessing Officer under section 18 2***; or] (e) objecting to any order of the 3[Assessing Officer] under sub -section ( 2) of section 20; or (f) objecting to any penalty imposed by the 3[Assessing Officer] under the provisions of 4[section 221] of the Income -tax Act as applied under section 32 for the purposes of wealth -tax; 5[or] 5[(g) objecting to any order made by the 3[Assessing Officer] under section 22 treating him as the agent of a person residing outside India ; or (h) objecting to any order of the 3[Assessing Officer] under section 35 having the effect of enhancing the assessment or reducing a refund or refusing to allow the claim made by the assessee under the said section; or 6[(ha) objecting to any order of the Val uation Officer under section 35 having the effect of enhancing the valuation of any asset or refusing to allow the claim made by the assessee under the said section ; or] 7* * * * *] may appeal to the 8[Deputy Commissioner (Appeals)] 9[before the 1st day of June, 2000,] against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner. 10[(1A) Notwithstanding anything contained in sub -section ( 1), any person, (a) objecting to the amount of net wealth determined under this Act or objecting to the amount of wealth -tax determined as payable by him under this Act or denying his liability to be assessed under this Act, where the net wealth determined on assessment made under section 16 exceeds fifteen lakh rupees; or 11[12[(b) objecting to any penalty imposed under sub -section ( 1) of section 18 with the previous approval of the Deputy Commissioner as specified in sub -section ( 3) of that section; or] (c) objecting to any assessment or order referred to in claus es (a) to ( h) (both inclusive) of sub - section ( 1), where such assessment or order has been made by the Deputy Commissioner in exercise of the powers or functions conferred on or assigned to him under section 8 or section 11; or (d) objecting to any penalty imposed by the Deputy Director or the Deputy Commissioner under section 18A; or] 1. Subs. by Act 4 of 1988, s. 146, for clause ( d) (w.e.f. 1 -4-1989). Earlier it was amended by Act 46 of 1964, s. 22 (w.e.f. 1 -4-1964). 2. The words as it stood immediately before the 1st day of April, 1989 or under section. 18 as amended by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988) omitted by Act 3 of 1989, s. 71 (w.e.f. 1 -4-1989). 3. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 4. Subs. by Act 46 of 1964, s. 22, for sub -section ( 1) of section 46 (w.e.f. 1 -4-1965). 5. Ins. by s. 22, ibid. (w.e.f. 1 -4-1965). 6. Ins. by Act 45 of 1972, s. 11 (w.e.f. 1 -1-1973). 7. Clause ( i) omitted by Act 4 of 1988, s. 146 (w.e.f. 1 -4-1989). Earlier it was amended by Act 45 of 1972, s. 11 (w.e.f . 1-1-1973). 8. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 9. Ins. by Act 10 of 2000, s. 72 (w.e.f. 1 -6-2000). 10. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 11. Subs. by Act 4 of 1988, s . 146, for clauses ( b), (c) and ( d) (w.e.f. 1 -4-1989). 12. Subs. by Act 3 of 1989, s. 71, for clause ( b) (w.e.f. 1 -4-1989). 61 (e) objecting to an order made by an 1[Assessing Officer] in the case of such persons or classes of persons as the Board may, having regard to the nature of the cases, the co mplexities involved and other relevant considerations, direct, may appeal to the Commissioner (Appeals) 2[before the 1st day of June, 2000,] against the assessment or order, as the case may be, in the prescribed form and ver ified in the prescribed manner. 2[(1AA) Notwithstanding anything contained in sub -section ( 1), every appeal filed, on or after the 1st day of October, 1998, but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day.] 3[(1B) Notwithstanding anything contained in sub -sectio n (1), the Board or the Director General or Chief Commissioner or Commissioner, if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board or, as the case may be, the Director General, Chief Commissioner or Commissioner (at the request of the appellant or otherwise) is satisfied that it is necessary or expedi ent so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it w as before it was so transferred : Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re -opened or that he be reheard.] ] (2) An appeal shall be presented within thirty days of the receipt of the notice of dema nd relating to the assessment or penalty objected to, or the date on which any order objected to, is communicated to him, but the 4[Deputy Commissioner (Appeals)] 5[or, as the case may be, the Commissioner (Appeals)] may admit an appeal after the expiratio n of the period aforesaid if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period. 6[(2A) Where a return has been filed by an assessee, no appeal under this section shall be admitted unless at the time of filing of the appeal he has paid the tax due on the net wealth returned by him. 7* * * * *] (3) The 4[Deputy Commissioner (Appeals)] 5[or, as the case may be, the Commissioner (Appeals)] shall fix a day and place for the hearing of the appeal and may, from time to time, adjourn the hearing. 8[(3A) If the valuation of any asset is objected to in an appeal under clause ( a) of sub -section ( 1) 5[or of sub -section ( 1A)], the 4[Deputy Commissioner (Appeals)] 5[or, as the case may be, the Commissioner (Appeals)] shall, (a) in a case where such valuation has been made by a Valuation Officer under section 16A, give such Valuation Officer an opportunity of being heard; 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 2. Ins. by Act 10 of 2000, s. 72 (w.e.f. 1 -6-2000). 3. Subs. by Act 4 of 1988, s. 146, for sub -sections ( 1B) and ( 1C) (w.e.f. 1 -4-1989). Earlier sub -section ( 1B) was inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978) and sub -section ( 1C) was inserted by Act 21 of 1979, s. 25 (w.e.f. 1 -6-1979). 4. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 5. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 6. Ins. by Act 41 of 1975, s. 94 (w.e.f. 1 -10-1975). 7. The proviso omit ted by Act 4 of 1988, s. 146 (w.e.f. 1 -4-1989). 8. Ins. by Act 45 of 1972, s. 11 (w.e.f. 1 -1-1973). 62 (b) in any other case, on a request being made in this behalf by the 1[Assessing Officer], give an opportunity of being heard to any Valuation Officer nominated for the purpose by the 1[Assessing Officer]. ] (4) The 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] may (a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal; (b) before disposing of an appeal, make such further inquiry as he thinks fit or cause further inquiry to be made by the 4[1[Assessing Off icer] or, as the case may be, the Valuation Officer]. (5) In disposing of an appeal, the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] may pass such order as he thinks fit which may include an order enhancing the assessment or penalty: Provided that no order enhancing the assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement. 5[(5A) In disposing of an appeal, the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] by the appellant. (5B) The order of the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] disposing of the appeal shall be in writin g and shall state the points for determination, the decision thereon and the reasons for the decision.] (6) A copy of every order passed by the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] under this section shall be forwarded to the appellant and the 6[Chief Commissioner or Commissioner]. 7[23A. Appealable orders before Commissioner (Appeals). (1) Any person (a) objecting to the amount of net wealth determined under this Act; or (b) objecting to the amount of wealth -tax determined as payable

ing to the amount of net wealth determined under this Act; or (b) objecting to the amount of wealth -tax determined as payable by him under this Act; or (c) denying his liability to be assessed under this Act; or (d) objecting to any penalty imposed by the Ass essing Officer under section 18 or section 18A; or (e) objecting to any order of the Assessing Officer under sub -section ( 2) of section 20; or (f) objecting to any penalty imposed by the Assessing Officer under the provisions of section 221 of the Income -tax Act as applied under section 32 for the purposes of wealth -tax; or 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 2. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 3. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 4. Subs. by Act 45 of 1972, s. 11, for Wealth -tax Officer (w.e.f. 1 -1-1973). 5. Ins. by Act 46 of 1964, s. 22 (w.e.f. 1 -4-1965). 6. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 7. Ins. by Act 21 of 1998, s. 69 (w.e.f. 1 -10-1998). Earlier section 23A was inserted by Act 4 of 1988, s. 147 (w.e.f. 1 -4-1989) which was later omitted by Act 3 of 1989, s. 95 (w.e.f. 1 -4-1989). 63 (g) objecting to any order made by the Assessing Officer under section 22 treating him as the agent of a person residing outside India; or (h) objecting to any order of the Assessing Officer under section 35 having the effect of enhancing the assessment or reducing a refund or refusing to allow the claim made by the assessee under the said section; or (i) objecting to any order of the Valuation Officer under section 35 having the effect of enhancing the valuation of any asset or refusing to allow the claim made by the assessee under the said section; or (j) objecting to any penalty imposed by the Deputy Director or Deputy Commissioner under section 18A, may appeal to the Commi ssioner (Appeals) against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner and on payment of a fee of two hundred and fifty rupees. Explanation. For the purposes of this sub -section, where on or befo re the 1st day of October, 1998, the post of Deputy Commissioner has been redesignated as Joint Commissioner and the post of Deputy Director has been redesignated as Joint Director, the references in this sub -section for Deputy Commissioner and Deputy D irector shall be substituted by Joint Commissioner and Joint Director respectively. (2) Notwithstanding anything contained in sub -section ( 1) of section 23, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeals or matter from the stage on which it was on that day: Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceedings or any part thereof be re -opened or that he be re -heard. Explanation. For the purposes of this sub-section, appointed day means the day appointed under section 246A of the Income -tax Act. (3) An appeal shall be presented within thirty days of the receipt of the notice of demand relating to the assessment or penalty objected to or the day on which any order objected to is communicated to him, but the Commissioner (Appeals) may admit an appeal after the expiration of the period aforesaid, if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period. (4) Where a return has been filed by an assessee, no appeal under this section shall be admitted unless at the time of filing of the appeal, he has paid the tax due on the net wealth returned by him. (5) The Commissioner (Appeals) shall fix a day and place for the hearing of the appeal and may, from time to time, adjourn the hearing. (6) If the valuation of any asset is objected to in an appeal under clause ( a) or clause ( i) of sub -section (1), the Commissioner (Appeals) shall, (a) in case where such valuation has been made by a Valuation Officer under section 16A, give such Valuation Officer an opportunity of being heard; (b) in any other case on request being made in this behalf by the Assessing Officer, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the Assessing Officer. 64 (7) The Commissioner (Appeals) may, (a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal; (b) before disposing of any appeal, make such further enquiry as he thinks fit or cause further enquiry to be made by the Assessing Officer or, as the case may be, by the Valuation Officer. (8) In disposing of an appeal, the Commissioner (Appeals) may pass such order as he thinks fit which may include an order enhancing the assessment or penalty: Provided that no order enhancing the assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against s uch enhancement. 1[(8A) In every appeal, the Commissioner (Appeals), where it is possible, may hear and decide such appeal within a period of one year from the end of the financial year in which such appeal is filed under sub-section ( 1).] (9) In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not placed before the Commissioner (Appeals) by the appellant. 2[(9A) In disposing of an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 22HA, he may, after taking into consideration all the material and other information produced by the a ssessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceedings before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment.] (10) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determining the decision thereon and reasons for the decision. (11) A copy of every order passed by the Commissioner (Appeals) under this section shall be forwarded to the appellant and the Chief Commissioner or Commissioner.] 24. Appeal to the Appellate Tribunal from orders of the 3[Deputy Commissioner (Appeals) ]. 4[(1) An assessee objecting to an order passed by the 3[Deputy Commissioner ( Appeals)], 5[or the Commissioner (Appeals)] under section 18 or section 18A or section 23 6[, section 23A] or sub-section ( 2) of section 37 7*** may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him.] (2) The Commissioner may, if he is not satisfied as to the correctness of any order passed by 8[a Commissioner (Appeals) under sub -section ( 10) of section 23A], direct the 9[Assessing Officer] to appeal to the Ap pellate Tribunal against such order, and such appeal may be made at any time before the expiry of sixty days of the date on which the order is communicated to the Commissioner. 1. Ins. by Act 27 of 1999, s. 93 (w.e.f. 1 -6-1999). 2. Ins. by Act 18 of 2008, s. 64 (w.e.f. 1 -4-2008). 3. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 4. Subs. by Act 41 of 1975, s. 95, for sub -section ( 1) (w.e.f. 1 -4-1976). Earlier it was substituted by Act 46 of 1964, s. 23 (w.e.f. 1 -4-1965). 5. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 6. Ins. by Act 21 of 1998, s. 70 (w.e.f. 1 -10-998). 7. The words, figures and letter , or to an order passed by the Inspecting Assistant Commissioner under section 18A omitted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 8. Subs. by Act 21 of 1998, s. 70, for a Deputy Commissioner (Appeals) or a Commissioner (Appeals) under section 23 (w.e.f. 1 -10-1998). Earlier it was amended by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978) and later by Act 4 of 1988, s. 127 (w.e.f. 1 -4-1988). 9. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 65 1[(2A) The 2[Assessing Officer] or the assessee, as the case may be, on receipt of notice that an appeal against the order of 3[*** the Commissioner (Appeals)] has been preferred under sub -section ( 1) or sub - section ( 2) by the other party, may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross -objections verified in the prescribed manner, against any part of the order of 3[*** the Commissioner (Appeals)] and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub -section ( 1) or sub -section ( 2).] 4[(3) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross - objections after the expiry of the relevant period referred t o in sub -section ( 1) or sub -section ( 2) or sub - section ( 2A), if it is satisfied that there was sufficient cause for not presenting it within that period.] (4) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub -section ( 2), be accompanied by a fee of 5[one thousand rupees ]: 6[Provided that in the case of an appeal not relatable to net wealth as computed by the Assessing Officer, the appeal shall be accompanied by a fee of five hundred rupees.] (5) The Appellate Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enha ncing the assessment or penalty : 7[Provided that if the valuation of any asset is objected to, the Appellate Tribunal shall, (a) in a case where such valuation has been made by a Valuation Officer under section 16A, also give such Valuation Officer an opportunity of being heard; (b) in any other case, on a request being made in this behalf by the 2[Assessing Officer], give an opportun ity of being heard also to any Valuation Officer nominated for the purpose by the 2[Assessing Officer ]: Provided further that] no order enhancing an assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportun ity of showing cause against such enhancement. 6[(5A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of four years from the end of the financial year in which such appeal is filed under sub-section ( 1) 8[or sub -section ( 2)]. (5B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal.] 9* * * * * (9) A copy of every order passed by the Appellate Tribunal under this section shall be forwarded to the assessee and the Commissioner. 1. Ins. by Act 46 of 1964, 23 (w.e.f. 1 -4-1965). 2. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. The words and brackets the Deputy Commissioner (Appeals) or omitted by Act 21 of 1998, s. 70 ( w.e.f. 1 -10-1998). Earlier it was amended by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978) and by Act 4 of 1988, s. 127 (w.e.f. 1 -4- 1988). 4. Subs. by Act 46 of 1964, s. 23, for sub -section ( 3) (w.e.f. 1 -4-1965). 5. Subs. by Act

-section ( 3) (w.e.f. 1 -4-1965). 5. Subs. by Act 21 of 199 8, s. 70, for two hundred rupees (w.e.f. 1 -10-1998). 6. Ins. by Act 27 of 1999, s. 94 (w.e.f. 1 -6-1999). 7. Subs. by Act 45 of 1972, s. 12, for Provided that (w.e.f. 1 -1-1973). 8. Ins. by Act 10 of 2000, s. 73 (w.e.f. 1 -6-2000). 9. Sub -sections (6), (7), (8), (8A) and ( 8B) omitted by Act 45 of 1972, s. 12 (w.e.f. 1 -1-1973). Earlier these sub -sections were substituted by Act 46 of 1964, s. 23 (w.e.f. 1 -4-1965). 66 (10) Save as provided in section 27 1[or section 27A], any order passed by the Appellate Tribunal on appeal shall be final. (11) The provisions of 2[sub-sections ( 1), (4) and ( 5) of section 255] of the Income -tax Act shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Income -tax Act. 25. Powers of Commissioner to revise orders of subordinate authorities. (1) The Commissioner may, either of his own motion or on application made by an assessee in this behalf, call for the record of any proceeding under this Act in which an order has been passed by any authority subordinate to him, and may make such inquiry, or cause such enquiry to be made, and, subject to the provisions of this Act, pass such order thereon, not being an order prejudicial to the assessee, as the Commissioner thinks fit: Provided that the Commissioner shall not revise any order under this sub -section in any case (a) where an appeal against the order lies to the 3[Deputy Commissioner (Appeals)] 4[or to the Commissioner (Appeals)] or to the Appellate Tribunal, the time within which such appeal can be made has not expired or in the case of an appeal 4[to the Commissioner (Appeals) or ] to the Appellate Tribunal the assessee has not waived his right of appeal; (b) where the order is the subject of an appeal before the 3[Deputy Commissioner (Appeals)] 4[or the Commissioner (Appeals)] or the Appellate Tribuna l; (c) where the application is made by the assessee for such revision, unless (i) the application is accompanied by a fee of twenty -five rupees; and (ii) the application is made within one year from the date of the order sought to be revised or within such further period as the Commissioner may think fit to allow on being satisfied that the assessee was prevented by sufficient cause from making the application within that period; and (d) where the order is sought to be revised by the Commissioner of hi s own motion, if such order is made more than one year previously. Explanation. For the purposes of this sub -section, (a) the 3[Deputy Commissioner (Appeals)] shall be deemed to be an authority subordinate to the Commissioner; and (b) an order by the Commissioner declining to interfere shall be deemed not to be an order prejudicial to the assessee. (2) Without prejudice to the provisions contained in sub -section ( 1), the Commissioner may call for and examine the record of any proceeding u nder this Act, and if he considers that any order passed therein by an 5[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of revenue, he may, after giving the assessee an opportunity of being heard, and after making or causin g to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling it and directing a fresh assessment. 1. Ins. by Act 27 of 1999, s. 94 (w.e.f. 1 -6-1999). 2. Subs. by Act 46 of 1964, s. 23, for s ub-sections ( 5), (7) and ( 8) of section 5A (w.e.f. 1 -4-1965). 3. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 4. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 5. Subs. by Act 4 of 198 8, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 67 1[Explanation. For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, (a) an order passed 2[on or before or after the 1st day of June, 1988 ,] by the Assessing Officer shall include an order made by the 3[Joint Commissioner ] in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Boar d in this behalf under section 120 of the Income -tax Act read with section 8 of this Act; (b) record , 4[shall include and shall be deemed always to have included] all records relating to any proceeding under this Act available at the time of examination by the Commissioner; (c) where any order referred to in this sub -section and passed by the Assessing Officer had been the subject matter of any appeal 2[filed on or before or after the 1st day of June, 1988], the powers of the Commissioner under this sub -section shall extend 2[and shall be deemed always to have extended] to such matters as had not been considered and decided in such appeal.] 5[(3) No order shall be made under sub -section ( 2) after the expiry of two years 6[from the end of the financial year in which the order sought to be revised was passed ]. Explanation. In computing the period of limitation for the purposes of sub -section ( 3), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 and any peri od during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. 7[(3A) On every application made by an assessee for revision under sub -section ( 1), an order shall be passed by the Commissioner within on e year from the end of financial year in which such application is made by the assessee for revision. Explanation. In computing the period of limitation for the purposes of this sub -section, the time taken in giving an opportunity to the assessee to be re -heard under the proviso to section 39 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.] 8[(4) Notwithstanding anything contained in sub -section ( 3) or sub -section ( 3A), an ord er in revision under sub -section ( 1) or sub -section ( 2) may be passed at any time in consequence of, or to give effect to, any finding or direction contained in an or der of the Appellate Tribunal 9[National Tax Tribunal], the High Court or the Supreme Cour t.]] 1. Subs. by Act 26 of 1988, s. 57, for the Explanation (w.e.f. 1 -6-1988). Earlier it was inserted by Act 67 of 1984, s. 65 (w.e.f. 1 -10-1984) and later amended by Act 4 of 1988, s. 1 27 (w.e.f. 1 -4-1988). 2. Ins. by Act 13 of 1989, s. 30 (w.r.e.f. 1 -6-1988). 3. Subs. by Act 21 of 1998, s. 66, for Deputy Commissioner (w.e.f. 1 -10-1998). 4. Subs. by Act 13 of 1989, s. 30, for includes (w.r.e.f. 1 -6-1988). 5. Ins. by Act 46 of 1964, s. 24 (w.e.f. 1 -4-1965). 6. Subs. by Act 67 of 1984, s. 65, for from the date of the order sought to be revised (w.e.f. 1 -10-1984). 7. Ins. by Act 21 of 1998, s. 71 (w.e.f. 1 -10-1998). 8. Subs. by s. 71, ibid., for sub -section ( 4) (w.e.f. 1 -10-1998). 9. Ins. by Act 49 of 2005, s. 30 and the Schedule. This Act has been struck down by the Supreme Courts Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India. 68 26. Appeal to the Appellate Tribunal from orders of enhancement by 1[Chief Commissioner or Commissioner ].(1) Any assessee objecting to 2[an order passed by the 1[Chief Commissioner or Commissioner] under section 18 3[or section 18A] or sub -section ( 2) of section 25] 4[or an order passed by the Director General or Director under section 18A] may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him. (2) An Appeal to the Appellate Tribunal under sub -section ( 1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of 5[two hundred rupees ]. (3) The provisions of 6[sub-sections ( 3), (5), (9) and ( 10)] of section 24 shall apply in relation to any appeal under this section as they apply in relation to any appeal under that section. 27. Reference to High Court. 7[(1) The assessee or the 1[Chief Commissioner or Commissioner] may, within sixty days of the date upon which he is served with notice of an order 8[passed before the 1st day of June, 1999] under section 24 or section 26 9[or clause ( e) of sub -section ( 1) of section 35], by application in the pre scribed form, accompanied, where the application is made by the assessee, by a fee of 5[two hundred rupees ], require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contai ned in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court. (2) The Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period specified in sub -section ( 1), allow it to be presented within a further period not exceeding thirty days.] (3) If, on an application made under sub -section ( 1), the Appella te Tribunal (a) refuses to state a case on the ground that no question of law arises, or (b) rejects it on the ground that it is time barred; the applicant may, within 10[ninety days] from the date on which he is served with a notice of refusal or rejection, as the case may be, apply to the High Court, and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case to the High Court, and on receipt of suc h requisition, the Appellate Tribunal shall state the case: Provided that, if in any case where the Appellate Tribunal has been required by an assessee to state a case, the Appellate Tribunal refuses to do so on the ground that no question of law arises, t he assessee may, within thirty days from the date on which he receives notice of refusal to state the case, withdraw his application, and if he does so, the fee paid by him under sub -section ( 1) shall be refunded to him. 11[(3A) If, on an application made u nder this section, the Appellate Tribunal is of the opinion that, on account of a conflict in the decisions of the High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Ap pellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court.] 1. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988) . 2. Subs. by Act 46 of 1964, s. 25, for an order of enhancement made by the Commissioner under section 25 (w.e.f. 1 -4-1965). 3. Ins. by Act 41 of 1975, s. 96 (w.e.f. 1 -4-1976). 4. Ins. by Act 3 of 1989, s. 72 (w.e.f. 1 -4-1989). 5. Subs. by Act 16 of 198 1, s. 29, for one hundred and twenty -five rupees (w.e.f. 1 -6-1981). 6. Subs. by Act 45 of 1972, s. 13, for sub -sections ( 3) and ( 5) to ( 10) inclusive (w.e.f. 1 -1-1973). 7. Subs. by Act 46 of 1964, s. 26, for sub -sections ( 1) and ( 2) (w.e.f. 1 -4-1965). 8. Ins. by Act 27 of 199

w.e.f. 1 -4-1965). 8. Ins. by Act 27 of 1999, s. 95 (w.e.f. 1 -6-1999). 9. Ins. by Act 49 of 1991, s. 79 (w.e.f. 27 -9-1991). 10. Subs. by Act 46 of 1964, s. 26, for three months (w.e.f. 1 -4-1965). 11. Ins. by s. 26, ibid. (w.e.f. 1 -4-1965). 69 1[(3B) The High Court may admit an application after the expiry of the period of ninety days referred to in sub -section ( 3), if it is sati sfied that there was sufficient cause for not filing the same within that period.] (4) The statement to the High Court 2[or the Supreme Court] shall set forth the facts, the determination of the Appellate Tribunal and the question of law which arises out o f the case. (5) If the High Court 2[or the Supreme Court], is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised thereby, it may require the Appellate Tribunal to make such modifications therein as it m ay direct. (6) The High Court 2[or the Supreme Court], upon hearing any such case, shall decide the question of law raised therein, and in doing so, may, if it thinks fit, alter the form of the question of law and shall deliver judgment thereon containing the ground on which such decision is founded and shall send a copy of the judgment under the seal of the Court and the signature of the Registrar to the Appellate Tribunal and the Appellate Tribunal shall pass such orders as are necessary to dispose of the case conformably to such judgment. 3[(7) The cost of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference, shall be in the discretion of the Court.] 4[27A. Appeal to High Court. (1) The assessee or the Chief Commissioner or Commissioner may, within one hundred and twenty days of the day upon which he is served with notice of an order under section 24 or section 26 or clause ( e) of sub -section ( 1) of section 35, file on or after the 1st day of October , 1998, 5[but before the date of establishment of the National Tax Tribunal] an appeal before the High Court. 6[(1A) The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in sub -section ( 1), if it is s atisfied that there was sufficient cause for not filing the same within that period.] (2) An appeal shall lie to the High Court 5[before the date of establishment of the National Tax Tribunal] from every order passed in appeal by the Appellate Tribunal, un der sub -section ( 1) of section 24 only if the High Court is satisfied that the case involves a substantial question of law. (3) In an appeal under this section, the Memorandum of Appeal shall precisely state the substantial question of law invol ved in the appeal 7***. (4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (5) The appeal shall be heard only on the question so formulated and the respondent shall, at the time of hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub -section shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. 1. Ins. by Act 14 of 2010, s. 55 (w.r.e.f. 1 -6-1981). 2. Ins. by Act 46 of 1964, s. 26 (w.e.f. 1 -4-1965). 3. Subs. by s. 26, ibid., for sub -sections ( 7), (8) and ( 9) (w.e.f. 1 -4-1965). 4. Ins. by Act 21 of 1998, s. 72 (w.e.f. 1 -10-1998). 5. Ins. by Act 49 of 2005, s. 30 and the Schedule. This Act has been struck down by the Supreme Courts Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India. 6. Ins. by Act 14 of 2010, s. 56 (w.r.e.f. 1 -10-1998). 7. The words , and, where the appeal is made by the assessee, s hall be accompanied by a fee of five thousand rupees omitted by Act 27 of 1999, s. 96 (w.e.f. 1 -6-1999). 70 (6) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (7) The Assessing Officer shall give effect to the order of the High Court on the basis of a certified copy of judgment delivered under sub -section ( 6).] 1[(8) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to High Court shall, so far as may be, apply in the case of appeals under this section. ] 28. Hearing by High Court. When a case has been stated to the High Court 2[under section 27 or an appeal filed before the High Court under section 27A], it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion of such Judges or of the majority of such Judges, if any: Provided that where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the Judges of the High Court, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case, including those who first heard it. 29. Appeal to Supreme Court. (1) An appeal shall lie to the Supreme Court from any judgment of the High Court delivered 3[before the date of establishment of the National Tax Tribunal] on a case stated 4[under section 27 or an appeal filed under section 27A] in any case which the High Court certifies as a fit case for appeal to the Supreme Court. (2) Where the judgment of the High Court is varied or reversed on appeal under this section, effect shall be given to the order of the Supreme Court in the manner provided in sub -section ( 6) of section 27 5[or in sub -section ( 7) of section 27A]. (3) The High Court may, on application made to it for the execution of any order of the Supreme Court i n respect of any costs awarded by it, transmit the order for execution to any court subordinate to the High Court. 6[29A. Tax to be paid notwithstanding reference, etc. Notwithstanding that a reference has been made to the High Court or the Supreme Court o r an appeal has been preferred to the Supreme Court, 3[under this Act before the commencement of the National Tax Tribunal Act, 2005] wealth -tax shall be payable in accordance with t he assessment made in the case. 29B. Definition of High Court. In this Cha pter, High Court means (i) in relation to any State, the High Court of that State; 7[(ii) in relation to the Union territory of Delhi, the High Court of Delhi; 8* * * * *] 9[(iii) in relation to the Union territories of Arunachal Pradesh and Mizoram, the Gauhati High Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura);] 1. Ins. by Act 27 of 1999, s. 96 (w.e.f. 1 -6-1999). 2. Subs. by Act 21 of 1998, s. 73, for under section 27 (w.e.f. 1 -10-1998). 3. Ins. by Act 49 o f 2005, s. 30 and the Schedule. This Act has been struck down by the Supreme Courts Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India. 4. Subs. by Act 21 of 1998, s. 74, for under section 27 (w.e.f. 1 -10-1998). 5. Ins. by s. 74, ibid. (w.e.f. 1 -10-1998). 6. Ins. by Act 46 of 1964, s. 27 (w.e.f. 1 -4-1965). 7. Subs. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, for clause ( ii) (w.e.f. 1 -11-1966). 8. Clau se (iia) omitted by the State of Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973 (w.e.f. 25 -1-1971). 9. Subs. by the North -Eastern Areas (Reorganisation) (Arunachal of Laws on Union Subjects) Order, 1974, for clause ( iii) (w.e.f. 21-1-1972). 71 (iv) in relation to the Union territory of Andaman and Nicobar Islands, the High Court at Calcutta; (v) in relation to the Union territory of 1[Lakshadweep], the High Court of Kerala; (vi) in relation to the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, the High Court at Bombay; (vii) in relation to the Union territory of Pond icherry, the High Court at Madras; 2[(viii) in relation to the Union territory of Chandigarh, the High Court of Punjab and Haryana.] ] CHAPTER VII PAYMENT AND RECOVERY OF WEALTH -TAX 3[30. Notice of demand. When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the 4[Assessing Officer] shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable. 31. When tax, etc., payable and when assessee deemed in default. (1) Any amount specified as payable in a notice of demand under section 30 shall be paid within 5[thirty days] of the service of the notice at the place and to the person mentioned in the notice: Provided that, where the 4[Assessing Officer] has any reason to believe that it will be detrimental to revenue if the full period of 5[thirty days] aforesaid is allowed, he may, with the previous approval of the 6[Joint Commissioner], direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of 5[thirty days] aforesaid, as may be specified by him in the notice of demand. (2) If the amount specified in any notice of demand under section 30 is not paid w ithin the period limited under sub -section ( 1), the assessee shall be liable to pay simple interest at 7[8[one per cent .] for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentio ned in sub -section ( 1) and ending with the day on which the amount is paid ]: Provided that, where as a result of an order under section 23, 9[or section 23A,] or section 24, or section 25, or section 26, or section 27, or section 29, or section 35 10[or any order of the Wealth -tax Settlement Commission under sub -section ( 4) of section 22D], the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be ref unded: 1. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, for the Laccadive, Minicoy and Amindivi Islands (w.e.f. 1 -11-1973). 2. Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968 (w.e.f. 1 -11-1966). 3. Subs. by Act 46 of 1964, s. 28, for sections 30, 31 and 32 (w.e.f. 1 -4-1965). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e .f. 1-4-1988). 5. Subs. by s. 148, ibid., for thirty -five days (w.e.f. 1 -4-1989). 6. Subs. by Act 21 of 1998, s. 66, for Deputy Commissioner (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assista nt Commissioner (w.e.f. 1 -4-1988). 7. Subs. by Act 4 of 1988, s. 148, for fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub -section ( 1) (w.e.f. 1 -4-1989). Earlier fifteen per cent. was substituted by Act 67 of 1984, s. 66, for twelve per cent. (w.e.f. 1 -10-1984). 8. Subs. by Act 54 of 2003, s. 20, for one and one -fourth per cent. (w.e.f. 8 -9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 99, for one and one -half per cent. (w.e .f. 1-6-2001). 9.

9, for one and one -half per cent. (w.e .f. 1-6-2001). 9. Ins. by Act 10 of 2000, s. 74 (w.e.f. 1 -6-2000). 10. Ins. by Act 4 of 1988, s. 148 (w.e.f. 1 -4-1989). 72 1[Provided further that in respect of any period commencing on or before the 31st day of March, 1989, and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of 2[one per cent .] for every month or part of a month.] 3[(2A) Notwithstanding anything contained in sub -section ( 2), the 4[5[Chief Commissioner or Commissioner] may ] reduce or waive the amount of 6[interest paid or payable by an assessee ] under the said sub -section if 7[he is satisfied that] 8[(i) payment of such amount has caused or would cause genuine hardship to the assessee; (ii) default in the payment of the amount on which interest has been paid or was payable under the said sub -section was due to circumstances beyond the control of the assessee; and] (iii) the assessee has co -operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.] (3) Without prejudice to the provisions contained in sub -section ( 2), on an application made by the assessee before the expiry of the due date under sub -section ( 1), the 9[Assessing Officer] may extend the time for payment or allow payment by instalments, subject to such conditions as he may thi nk fit to impose in the circumstances of the case. (4) If the amount is not paid within the time limited under sub -section ( 1) or extended under sub - section ( 3), as the case may be, at the place and to the person mentioned in the said notice, the assessee shall be deemed to be in default. (5) If in a case where payment by instalments is allowed under sub -section ( 3), the assessee commits default in paying any one of the instalments within the time fixed under that sub -section, the assessee shall be deemed t o be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default. (6) Where an assessee has presented an appeal under section 23 10[or section 23A], the 9[Assessing Officer] may, in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of. (7) Where an assessee has been assessed in respect of assets located in a country outside India, the laws of which prohibit or restrict the remittance of money to India, the 9[Assessing Officer] shall not treat the assessee as in default in respect of that part of the tax which is attributable to those assets, and shall continue to treat the assessee as not in default in respect of that part of the tax until the pro hibition or restri ction of remittance is removed. 1. Ins. by Act 4 of 1988, s. 148 (w.e.f. 1 -4-1989). 2. Subs. by Act 54 of 2003, s. 20, for one and one -fourth per cent. (w.e.f. 8 -9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 99, for one and one -half per cent. (w.e.f. 1 -6-2001). 3. Ins. by Act 67 of 1984, s. 66 (w.e.f. 1 -10-1984). 4. Subs. by Act 11 of 1987, s. 88, for the Board may (w.e.f. 1 -4-1987). 5. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 6. Subs. by Act 11 of 1987, s. 88, for interest payable by an assessee (w.r.e.f. 1 -10-1984). 7. Subs. by s. 88, ibid., for , on the recommendation made by the Commissioner in this b ehalf, it is satisfied that (w.e.f. 1 -4- 1987). 8. Subs. by s. 88, ibid., for clauses ( i) and ( ii) (w.r.e.f. 1 -10-1984). 9. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 10. Ins. by Act 10 of 2000, s. 74 (w.e.f. 1 -6-2000). 73 32. Mode of recovery. The provisions contained in 1[sections 221 to 227, 228A ], 229, 231 and 232 of the Income -tax Act and the Second and Third Schedules to that Act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to wealth -tax and sums imposed by way of penalty, fine and interest under this Act instead of to income -tax and sums imposed by way of penalty, fine and interest under that Act 2[and to the corresponding wealth -tax authorities instead of to the income -tax authorities specified therein ]. Explanation I. Any reference to section 173 and sub -section ( 2) or sub -section ( 6) or sub -section ( 7) of section 220 of the Income -tax Act in the said provisions of that Act or the rules made thereunder shall be construed as references to sub -section ( 7) of section 22 and sub -section ( 2) or sub -section ( 6) or sub-section ( 7) of section 31 of thi s Act, respectively. 3[Explanation II. The Chief Commissioner or Commissioner and the Tax Recovery Officer referred to in the Income -tax Act shall be deemed to be the corresponding wealth -tax authorities for the purpose of recovery of wealth -tax and sums i mposed by way of penalty, fine and interest under this Act.] ] 33. Liability of transferees of properties in certain cases. (1) Where by reason of the provisions contained in section 4, the value of any assets transferred to any of the persons mentioned in that section have to be included in the net wealth of an individual, the person in whose name such assets stand shall, notwithstanding anything contained in any law to the contrary, be liable, on the service of a notice of demand by the 4[Assessing Officer] in this behalf, to pay that portion of the tax assessed on the assessee as is attributable to the value of the asset standing in his name as aforesaid: Provided that where any such asset is held jointly by more than one person, they shall be joint ly and severally liable to pay the tax as is attributable to the value of the asset so jointly held. (2) Where any such person as is referred to in sub -section ( 1) defaults in making payment of any tax demanded from him, he shall be deemed to be an assesse e in default in respect of such sum, and all the provisions of this Act relating to recovery shall apply accordingly. 34. [Restrictions on registration of transfers of immovable property in certain cases .]Omitted by the Wealth -tax (Amendment ) Act, 1964 , s. 29 (w.e.f. 1-4-1965 ). 5[CHAPTER VIIA REFUNDS 34A. Refunds. (1) Where, as a result of any order passed in appeal or other proceeding (including a rectification proceeding) under this Act, refund of any amount becomes due to the assessee, the 4[Assessing Officer] shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf: 6[Provided that where, by the order aforesaid, (a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment; 1. Subs. by Act 16 of 1972, s. 48, for sections 221 to 227 (w.e.f. 1 -4-1972). 2. Subs. by Act 4 of 1988, s. 149, for and to Wealth -tax Officer and Commissioner of Wealth -tax instead of to Income -tax Officer and Commissioner of Income -tax (w.e.f. 1-4-1988). 3. Subs. by s. 149, ibid., for Explanation II (w.e.f. 1 -4-1989). 4. Subs. by s. 127, ibid., for Wealth -tax Officer (w.e.f. 1 -4-1988). 5. Ins. by Act 46 of 1964, s. 30 (w.e.f. 1 -4-1965). 6. The proviso added by Act 4 of 1988, s. 150 (w.e.f. 1 -4-1989). 74 (b) the assessment is annulled, the refund shall become due only of the amount , if any, of the tax paid in excess of the tax chargeable on the 1[net wealth] returned by the assessee.] 2[(2) Where refund of any amount becomes due to the assessee as a result of an order under this Act or under the provisions of sub -section ( 1) of sect ion 16 after a return has been made under section 14 or section 15 or in response to a notice under clause ( i) of sub -section ( 4) of section 16 and the Assessing Officer is of the opinion, having regard to the fact that (i) a notice has been issued, or i s likely to be issued, under sub -section ( 2) of section 16 in respect of the said return; or (ii) the order is the subject -matter of an appeal or further proceeding; or (iii) any other proceeding under this Act is pending, that the grant of the refund is likely to adversely affect the revenue, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief Commissioner or Commissioner may determine.] (3) Where a refund is due to the assessee in pursuance of an order referred to in sub -section ( 1) and the 3[Assessing Officer] does not grant the refund within a period of six months from the date of such order, the Central Government shall pay to the assessee simple interest at 4[six per cent .] per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted. 5[(3A) Where the whole or any part of the refund referred to in sub -sectio n (3) is due to the assessee as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under t his Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub -section ( 3) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted: Provided that, where the amount so found to be in excess was paid in instal ments, such interest shall be payable on the amount of each such instal ment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted: Provided further that no interest under this sub -section shall be payable for a period of one month from t he date of the passing of the order in appeal or other proceeding: Provided also that, where any interest is payable to an assessee under this sub -section, no interest under sub -section ( 3) shall be payable to him in respect of the amount so found to be in excess.] (4) Where a refund is withheld under the provisions of sub -section ( 2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for th e period commencing after the expiry of six months from the date of the order referred to in that sub -section to the date the refund is granted. 6[(4A) The provisions of sub -sections ( 3), (3A) and ( 4) shall not apply in respect of any assessment for the as sessment year commencing on the 1st day of April, 1989, or any subsequent assessment year. 1. Subs. by Act 3 of 1989, s. 73, for total income (w.e.f. 1 -4-1989). 2. Subs. by Act 36 of 1989, s. 29, for sub -section ( 2) (w.r.e.f. 1 -4-1989). 3. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 4. Subs. by Act 54 of 2003, s. 21, for eight per cent. (w.e.f. 8 -9-2003). 5. Ins. by Act 41 of 1975, s. 97 (w.e.f. 1 -10-1975). 6. Ins. by Act 4 of 1988, s. 150 (w.e.f. 1 -4-1989). 75 (4B) (a) 1[Where refund of any amount becomes due to the assessee under this Act, ] he shall, subject to the provisions of this sub -section, be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of 2[one-half 3*** per cent .]

, in addition to the said amount, simple interest thereon calculated at the rate of 2[one-half 3*** per cent .] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation .For the purposes of this clause, date of payment o f the tax or penalty means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 30 is paid in excess of such demand. (b) If the proceedings resulting in the refund are delayed for reasons attributa ble to the assessee, whether wholly or in part, period of the delay so attributable to him shall be excluded from the period for which interest is payable and where any question arises as to the period to be excluded, it shall be decided by the Chief Commi ssioner or Commissioner whose decision thereon shall be final. (c) Where as a result of an order under 4[sub-section ( 3) or sub -section ( 5) of section 16 or] section 17 or section 23 5[or section 23A] or section 24 or section 25 or section 27 or section 29 or section 35 or any order of the Wealth -tax Settlement Commission under sub -section ( 4) of section 22D, the amount on which interest was payable under clause ( a) has been increased or reduced, as the case may be, the interest shall be increased or reduce d accordingly and, in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 30 and the provisions of this Act shall apply accordingly. (d) The provisions of this sub -section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years.] (5) Where under any of the provisions of this Act, a refund is found to be due to any person, the 6[Assessing Officer], 7[Deputy Commissioner (Appeals)] 8[, Commissioner (Appeals)] or 9[Chief Commissioner or Commissioner] , as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writ ing to such person of the action proposed to be taken under this section. ] 10[CHAPTER VIIB REGISTERED VALUERS 34AA. Appearance by registered valuers. Notwithstanding anything contained in this Act, any assessee who is entitled to or required to attend before any wealth -tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, except where he is required under this Act to attend in person, may attend by a registered valuer. 1. Subs. by Act 3 of 1989, s. 73, for Where, in pursuance of any order passed under this Act, t he refund of any amount becomes due to the assessee (w.e.f. 1 -4-1989). 2. Subs. by Act 54 of 2003, s. 21, for two -third per cent. (w.e.f. 8 -9-2003). Earlier the quoted words were substituted by Act 20 of 2002, s. 114, for three fourth per cent. (w.e.f . 1-6-2002) which were earlier substituted by Act 14 of 2001, s. 100, for one per cent. (w.e.f. 1 -6-2001). 3. The words and a half per cent. omitted by Act 49 of 1991, s. 80 (w.e.f. 1 -10-1991). 4. Ins. by Act 3 of 1989, s. 73 (w.e.f. 1 -4-1989). 5. Ins . by Act 10 of 2000, s. 75 (w.e.f. 1 -6-2000). 6. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 7. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 8. Ins. by Act 29 of 1977, s. 39 and the Sched ule (w.e.f. 10 -7-1978). 9. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 10. Ins. by Act 45 of 1972, s. 14 (w.e.f. 15 -11-1972). 76 34AB. Registration of valuers. (1) The 1[Chief Commissioner or Director General] shall maintain a register to be called the Register of Valuers in which shall be entered the names and addresses of persons registered under sub -section ( 2) as valuers. (2) Any person who possesses the qualifications prescribed in this behalf may apply to the 1[Chief Commissioner or Director General] in the prescribe d form for being registered as a valuer under this section: Provided that different qualifications may be prescribed for valuers of different classes of assets. (3) Every application under sub -section ( 2) shall be verified in the prescribed manner, shall b e accompanied by such fees as may be prescribed and shall contain a declaration to the effect that the applicant will (i) make an impartial and true valuation of any asset which he may be required to value; (ii) furnish a report of such valuation in the prescribed form; (iii) charge fees at a rate not exceeding the rate or rates prescribed in this behalf; (iv) not undertake valuation of any asset in which he has a direct or indirect interest. (4) The report of valuation of any asset by a registered valuer shall be in the prescribed form and be verified in the prescribed manner. 34AC. Restrictions on practice as registered valuer. (1) No person, either alone, or in partnership with any other person, shall practise , describe himself or hold himself out as a registered valuer for the purposes of this Act or permit himself to be so described or held out unless he is registered as a valuer or, as the case may be, unless he and all his partners are so registered under t his Chapter. (2) No company or other body corporate shall practise, describe itself or hold itself out as registered valuers for the purposes of this Act or permit itself to be so described or held out. 2[34ACC. Furnishing of particulars in certain cases. Where any person who is registered as a valuer under section 34AB or who has made an application for registration as a valuer under that section is, at any time thereafter, (a) convicted of any offence and sentenced to a term of imprisonment; or (b) in a case where he is a member of any association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of architecture, accountancy, or company secretaries or such other profession as t he Board may specify in this behalf by notification in the Official Gazette, found guilty of misconduct in his professional capacity, by such association or institution, he shall immediately after such conviction or, as the case may be, finding, intimate the particulars thereof 3[to the Chief Commissioner or Director General].] 1. Subs. by Act 26 of 1988, s. 58, for Board (w.e.f. 1 -6-1988). 2. Ins. by Act 67 of 1984, s. 68 ( w.e.f. 1 -10-1984). 3. Subs. by Act 26 of 1988, s. 59, for to the Board (w.e.f. 1 -6-1988). 77 34AD. Removal from register of names of valuers and restoration. (1) The 1[Chief Commissioner or Director General] may remove the name of any person from the register of valuers where 2[he is satisfied ], after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as 3[he thinks fit ] to make, (i) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact; (ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of miscondu ct in his professional capacity which, in the opinion of the 1[Chief Commissioner or Director General], renders him unfit to be kept in the register. (2) The 1[Chief Commissioner or Director General] may, on application and on sufficient cause being shown, restore to the register the name of any person removed therefrom. 4[(3) Without prejudice to the provisions of sub -sections ( 1) and ( 2), the Chief Commissioner or Director General shall, once in three years review the performance of all the registered val uers and may remove the name of any person from the Register of Valuers where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such t hat his name should not remain on the Register of Valuers. (4) The Chief Commissioner or Director General may himself conduct the inquiry referred to in sub - section ( 1) or sub -section ( 3) or appoint an Inquiry Officer not below the rank of a Commissioner t o conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director General and the Inquiry Officer so appointed shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908 ), when try ing a suit in respect of the following matters, namely: (a) discovery and inspection; (b) enforcing the attendance of any person including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and ot her documents; (d) issuing commission.] ] 5[34AE. Existing registered valuers to apply afresh. (1) Notwithstanding anything contained in this Chapter, every person whose name is included in the Register of Valuers immediately before the 1st day of June, 1988, shall, if he intends to continue to be registered under this Act, make an application under sub -section ( 2) of section 34AB within a period of three months from that date, for being registered afresh as a valu er under this Chapter and the provisions of sub -section ( 3) of that section and the rules made thereunder shall be applicable in respect of the verification of the application, the fees that shall accompany such application and the declaration to be made b y the applicant. (2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub -section ( 1). (3) Every application pending before the Board immediat ely before the 1st day of June,1988, shall be deemed to be an application received by the Chief Commissioner or Director General under sub-section ( 1).] 1. Subs. by Act 26 of 1988, s. 60, for Board (w.e.f. 1 -6-1988). 2. Subs. by s. 60, ibid., for it is satisfied (w.e.f. 1 -6-1988). 3. Subs. by s. 60, ibid., for it thinks fit (w.e.f. 1 -6-1988). 4. Ins. by s. 60, ibid. (w.e.f. 1 -6-1988). 5. Ins. by s. 61, ibid. (w.e.f. 1 -6-1988). 78 CHAPTER VIII MISCELLANEOUS 1[34B. Transfers to defraud revenue to be void. (1) Where, during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under rule 2 of the Second Schedule to the Income -tax Act as made applicable to this Act by section 32, any assessee creates a c harge on, or parts with (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) the possession of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of t he said proceeding or otherwise : Provided that such charge or transfer shall not be void, if it is made (i) for adequate consideration and without notice of the pendency of such p roceeding or, as the case may be, without notice of such tax or other sum payable by the assessee; or (ii) with the previous permission of the 2[Assessing Officer]. (2) This section applies to cases where the amount of tax or other sum payable or likely to be payable exceeds five thousand rupees and the assets charged or transferred exceed ten thousand rupees in value. Explanation. In this section, assets means land, building, machinery, plant, shares, securities and fixed deposits in banks to the extent to which any of the assets aforesaid does not form part of the stock - in-trade o f the business of the assessee. 34C. Provisional attachment to protect reve nue in certain cases. (1) Where, during the pendency of any proceeding for the assessment of net wealth or for the assessment or reassessment of net wealth which has escaped assessment, the 2[Assessing Officer] is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the 3[Chief Commissioner or Commissioner], by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the S econd Schedule to the Income -tax Act as made applicable to this Act by section 32. 4[Explanation. For the purposes of this sub -section, the proceedings under sub -section ( 5) of section 37A shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment.] (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made

Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub -section ( 1): Provided that the 3[Chief Commissioner or Commissioner] may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so however, that the total period of extension shall not in any case excee d two years: 4[Provided further that where an application for settlement under section 22C is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub -section ( 1) of section 22D is mad e shall be excluded from the period specified in the preceding proviso.] ] 1. Subs. by Act 41 of 1975, s. 98, for section 34B (w.e.f. 1 -10-1975). Earlier section 34B was inserted by Act 46 of 1964, s. 31 (w.e.f. 1-4-1965). 2. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 4. Ins. by Act 26 of 1988, s. 62 (w.e.f. 1 -4-1988). 79 1[35. Rectification of mistakes. (1) With a view to rectifying any mistake apparent from the record (a) the 2[Assessing Officer] may amend any order of assessment or of refund or any other order passed by him; 3[(aa) a wealth -tax authority may amend any intimation or deemed intimation under sub -section (1) of section 16;] 4[5[(aaa)] the Valuation Officer may amend any order passed by him under section 16A;] 6[(b) the 7[Joint Direct or] or 8[Joint Commissioner ] or Director or Commissioner or Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 18A;] 9[(c) the Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 23 10[or section 23A]; (d) the Commissioner may amend any order passed by him under section 25; (e) the Appellate Tribunal may amend any order passed by it under section 24.] (2) Where the amount of tax, penalty or interest determined as a result of the first appeal or revision against the order referred to in sub -clause ( iii) of clause ( m) of section 2 11[, as it existed immediately before its amendment b y the Finance Act, 1992,] is paid within six months of the date of the order passed in such appeal or revision, the 2[Assessing Officer] may, notwithstanding anything to the contrary in this Act, rectify the assessment by allowing a deduction to the extent the tax, penalty or interest so paid stood disallowed therein as if such rectification were a rectification of a mistake apparent from the record. (3) Subject to the other provisions of this section, the authority concerned (a) may make an amendment unde r sub -section ( 1) or sub -section ( 2) of its own motion; (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the 12[Valuation Officer or the 13[Deputy Commiss ioner (Appeals)] ] 14[or the Commissioner (Appeals)] or the Appellate Tribunal, by the 2[Assessing Officer] also. (4) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, sh all not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard. 1. Subs. by Act 46 of 1964, s. 32, for section 3 5 (w.e.f. 1 -4-1965). 2. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 3. Subs. by Act 27 of 1999, s. 97, for clause ( aa) (w.e.f. 1 -6-1999). Earlier clause (aa) was inserted by Act 4 of 1988, s. 151 (w.e.f. 1 -4-1989). 4. Ins. by Act 45 of 1972, s. 15 (w.e.f. 1 -1-1973). 5. Clause ( aa) renumbered as clause ( aaa) therof by Act 4 of 1988, s. 151 (w.e.f. 1 -4-1989). 6. Subs. by Act 4 of 1988, s. 160, for clause ( b) (w.e.f. 1 -4-1989). 7. Subs. by Act 21 of 1998, s. 66, for De puty Director (w.e.f. 1 -10-1998). 8. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). 9. Subs. by Act 4 of 1988, s. 160, for clauses ( d) and ( e) (w.e.f. 1 -4-1989). Earlier clause ( c) was omitted by Act 41 of 1975, s. 99 (w.e.f. 1-4-1976). 10. Ins. by Act 10 of 2000, s. 76 (w.e.f. 1 -6-2000). Earlier it was omitted by Act 3 of 1989, s. 74 (w.e.f. 1 -4-1989). 11. Ins. by Act 18 of 1992, s. 97 (w.e.f. 1 -4-1993). 12. Subs. by Act 45 of 1972, s. 15, for Appellate Assistant Commissioner (w.e.f. 1 -1-1973). 13. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 14. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 80 (5) Where an amendment is made under this section, an order s hall be passed in writing by the wealth -tax authority concerned or the Tribunal, as the case may be. (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the 1[Assessing Officer] shall serve on the asse ssee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be issued under section 30 and the provisions of this Act shall apply accordingly. 2[(6A) Where any amendment made by the Valuation Offic er under clause ( aa) of sub -section ( 1) has the effect of enhancing the valuation of any asset, he shall send a copy of his order to the 1[Assessing Officer] who shall thereafter proceed to amend the order of assessment in conformity with the order of the Valuation Officer and the provisions of sub -section ( 6) shall apply accordingly.] (7) No amendment under this section shall be made after the expiry of four years (a) in the case of an amendment under sub -section ( 2), 3[from the end of the financial year in which the order was passed in the first appeal or revision] referred to in that sub -section; and (b) in any other case, 4[from the end of the financial year in which the order sought to be amended was passed]. 2[(7A) Notwithstanding anything contained in sub -section ( 7), where the valuation of any asset has been enhanced by the Valuation Officer under this section, the consequential amendment to the order of assessment may be made by the 1[Assessing Officer] at any time before the expiry of one year fro m the date of the order of the Valuation Officer under this section.] (8) Where any matter has been considered and decided in a proceeding by way of an appeal or revision relating to an order referred to in sub -section ( 1), the authority passing such order may, notwithstanding anything contained in any other law for the time being in force, amend the order under this section in relation to any matter other than the matter which has been so considered and decided.] 5[35A. Wilful attempt to evade tax, etc. (1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punisha ble, (i) in a case where the amount sought to be evaded exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigo rous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he sha ll, without prejudice to any penalty that may be imposable on him under any other provisions of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the di scretion of the court, also be liable to fine. 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e .f. 1-4-1988). 2. Ins. by Act 45 of 1972, s. 15 (w.e.f. 1 -1-1973). 3. Subs. by Act 67 of 1984, s. 69, for from the date of the order passed in the first appeal or revision (w.e.f. 1 -10-1984). 4. Subs. by s. 69, ibid., for from the date of the order soug ht to be amended (w.e.f. 1 -10-1984). 5. Ins. by Act 41 of 1975, s. 100 (w.e.f. 1 -10-1975). 81 Explanation. For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person (a) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement, or (b) makes, or causes to be made, any false entry or state ment in such books of account or other documents, or (c) wilfully omits, or causes to be omitted, any relevant entry or statement in such books of account or other documents, or (d) causes any other circumstances to exist which will have the effect of enab ling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof. 35B. Failure to furnish returns of net wealth. If a person wilfully fails to furnish in due time the return of his net wealth which he is required to furnish under sub -section ( 1) of section 14 or by notice given under sub -section ( 2) of section 14 or under sub -section ( 1) of section 17, he shall be punishable, (i) in a case where the amount of tax, which would have been evaded if the failu re had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of net wealth under sub -section ( 1) of secti on 14 (i) for any assessment year commencing prior to the 1st day of April, 1975; or (ii) for any assessment year commencing on or after the 1st day of April, 1975, if (a) the return is furnished by him before the expiry of the assessment year; or (b) the tax payable by him on his net wealth determined on regular assessment does not exceed three thousand rupees. 35C. Failure to produce accounts, records, etc. If a person wilfully fails to produce, or cause to be produced, on or before the date specified in any notice under sub -section ( 4) of section 16, such accounts, records and documents as are referred to in the notice, he shall be punishable with rigorous imprisonment for a term which may extend to one year or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both. 35D. False statement in verification, etc., made under certain provisions of the Act. If a person makes a statement in any verification under this Act (other than under section 34AB) or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable , (i) in a case where the amount of tax which would have been evaded if the statement or account had been accepted as true, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may ex tend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine. 82 35E. False statement in verification mentioned in section

months but which may extend to three years and with fine. 82 35E. False statement in verification mentioned in section 34AB. If a person makes a statement in a verification mentioned in section 34AB which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. 1[35EE. Failure to furnish particulars under section 34ACC. If a person referred to in section 34ACC fails 2*** to intimate to the Board the particulars of conviction or finding referred to in the said section, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine]: 3[Provided that no person shall be punishable under this section if he proves that there was reasonable cause or excuse for the said failure.] 4[35EEE. Contravention of order made under second proviso to sub -section ( 1) or sub -section (3A) of section 37A. If a person contravenes any order referred to in the second proviso to sub -section (1) or sub -section ( 3A) of section 37A, he shall be punisha ble with rigorous imprisonment for a term which may extend to two years and with fine.] 35F. Abetment of false return, etc. If a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any net wealth chargeable to tax which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section 35A, he shall be punishable, (i) in a case where the amount of tax, penalty or interest, which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine. 35G. Punishment for second and subsequ ent offences. If any person convicted of an offence under sub -section ( 1) of section 35A or section 35B or section 35D or section 35F is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for ever y subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine. 5[35GA. Power of Commissioner to grant immunity from prosecution. (1) A person may make an application to the Commissioner for granting immunity from prosecution, if he has made an application for settlement under section 22C and the proceedings for settlement have abated under section 22HA. (2) The application to the Commissioner under sub -section ( 1) shall n ot be made after institution of the prosecution proceedings after abatement. (3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this Act, if he is satisfie d that the person has, after the abatement, co -operated with the wealth -tax authority in the proceedings before him and has made a full and true disclosure of his net wealth and the manner in which such net wealth has been derived: 1. Ins. by Act 67 of 1984, s. 70 (w.e.f. 1 -10-1984). 2. The words , without reasonable cause or excuse, omitted by Act 46 of 1986, s. 38 (w.e.f. 10 -9-1986). 3. Ins. by s. 38, ibid. (w.e.f. 10 -9-1986). 4. Ins. by Act 12 of 1990, s. 56 (w.e.f. 1 -4-1990). 5. Ins. by Act 18 of 2008, s. 65 (w.e.f. 1 -4-2008). 83 Provided that where the application for settlement under section 22C had been made before the 1st day of June, 2007, the Commissioner may grant immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force. (4) The immunity granted to a person under sub -section ( 3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as i f such immunity had not been granted. (5) The immunity granted to a person under sub -section ( 3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars, material to the assessment, from the wealth -tax authority or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have b een guilty in connection with the proceedings.] 35H. Offences by Hindu undivided families. (1) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub -section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due dilige nce to prevent the commission of such offence. (2) Notwithstanding anything contained in sub -section ( 1), where an offence under this Act has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent o r connivance of, or is attributable to any neglect on the part of, any member thereof, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. 1[35HA. Offences by companies. (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be d eemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub -section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub -section ( 1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guil ty of that offence and shall be liable to be proceeded against and punished accordingly. 2[(3) Where an offence under this Act has been committed by a person, being a company and such offence is punishable with imprisonment and fine, then, without prejudic e to the provisions contained in sub-section ( 1) or sub -section ( 2), such company shall be punished with fine and every person, referred to in sub -section ( 1) or the director, manager, secretary or other officer of the company referred to in sub - section ( 2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act.] 1. Ins. by Act 18 of 1992, s. 98 (w.e.f. 1 -4-1993). 2. Ins. by Act 23 of 2004, s. 65 (w.e.f. 1 -10-2004). 84 Explanation. For the purposes of this section, (a) company means a body corporate, and includes (i) a firm; and (ii) an association of persons or a body of individuals whether incorporated or not; and (b) director , in relation to, (i) a firm, means a partner in a firm; (ii) any association of persons or a body of individuals, means any member controlling the affairs thereof.] 1[35-I. Prosecutions to be with the previous sanction of certain wealth -tax authorities and their power to compound offences. 2[(1) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Co mmissioner or Commissioner (Appeals): Provided that the Chief Commissioner or, as the case may be, Director General may issue such instructions or directions to the aforesaid wealth -tax authorities as he may deem fit for institution of proceedings under this sub -section. (2) Any such offence may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or a Director General.] 3[Explanation. For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other wealth -tax authorities for the proper composition of offences under this section.] ] 35J. Certain offences to be non -cognizable. Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under section 35A or section 35B or section 35D or section 35F shall be deemed to be non -cognizable within the meaning of that Code. 35K. Bar on prosecution and on inadmissibility of evidence in certain circumstances. (1) A person shall not be proceeded against for an offen ce under section 35A or section 35D in relation to the assessment for 4[an assessment year] in respect of which the penalty imposed or imposable on him under clause ( iii) of sub -section ( 1) of section 18 has been reduced or waived by an order under section 18B. (2) Where any proceeding for prosecution has been taken against any person under this Act, any statement made or account or other document produced by such person before 5[any Wealth -tax authority (not being an Inspector of Income -tax)] shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived under section 18B or that the offence in respect of which such proceeding was taken would be compounded. 35L. Jurisdiction of courts. No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence under this Act. 1. Subs . by Act 26 of 1988, s. 63, for section 35 -I (w.e.f. 1 -4-1989). 2. Subs. by Act 49 of 1991, s. 81, for sub -sections ( 1) and ( 2) (w.e.f. 1 -10-1991). 3. Ins. by s. 81, ibid. (w.e.f. 1 -4-1991). 4. Subs. by Act 12 of 1990, s. 57, for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year (w.e.f. 1 -4-1989). Earlier the quoted words were substituted by Act 4 of 1988, s. 152 (w.e.f. 1 -4-1989). 5. Subs. by Act 4 of 1988, s. 152, for any of the Wealth -tax authorities spe cified in sections 8, 9, 9A, 10, 10A, and 11 (w.e.f. 1 -4-1989). 85 35M. Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply. Nothing contained in section 360 of the Code of Criminal Procedure, 1973 (2 of 1974), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of an offence under this Act unless that person is under eighteen years of age. 35N. Presumption as to books of account, etc., in certain cases. (1) Where during the course of any search made under section 37A, any books of account or other docu ments, articles or things including money have been found in the possession or control of any person and such books of account or other documents are tendered, or such articles or things including money are relied upon, by the prosecution in evidence again st such person or against such person and the person referred to in section 35F for an offence under this Act, the provisions of sub -section ( 5) of section 37A shall, so far as may be, apply in relation to such books of account or other documents, articles or things including money. (2) Where (i) any books of account or other documents, taken into custody, from the possession or control of any person by any officer or authority under clause ( a) or clause ( b) of sub -section ( 1) of section 37B, are delivered to the requisitioning officer under sub -section ( 2) of that section; or (ii) any note or inventory of any articles or things including money taken into custody, from the possession of any person, by any officer or authority under clause ( c) of sub -section (1) of section 37B, is furnished to the requisitioning officer under sub -section ( 2) of that section, and such books of account or other documents are tendered, or such note or inventory is relied upon, by the prosecution in evidence against such person o r against such person and the person referred to in section 35F for an offence under this Act, the provisions of sub -section ( 5) of section 37A shall, so far as may be, apply in relation to such books of account or other documents or, as the case may be, t he articles or things including money, covered by such note or inventory. 1[35-O. Presumption as to culpable

articles or things including money, covered by such note or inventory. 1[35-O. Presumption as to culpable mental state. (1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation. In this sub -section, culpable mental state includes intention, motive or knowledge of a fact, or belief in, or reason to believe, a fact. (2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.] ] 2[36. Proof of entries in records or documents. Entries in t he records or other documents in the custody of a wealth -tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Act, and all such entries may be proved either by the production of the reco rds or other documents in the custody of the wealth -tax authority containing such entries or by the production of a copy of the entries certified by the wealth -tax authority having custody of the records or other documents under its signature and stating t hat it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.] 1. Ins. by Act 46 of 1986, s. 39 (w.e.f. 10 -9-1986). 2. Ins. by Act 3 of 1989, s. 75 (w.e.f. 1 -4-1989). Earlier it was omitted by Act 41 of 1975, s. 101 (w.e.f. 1 -10-1975). 86 1[36A. Power to tender immunity from prosecution. (1) The Central Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of particulars of net wealth or to the evasion of payment of tax on net wealth, it is necessary or expedient so to do, tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and also from the impo sition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the concealment of particulars of net wealth or evasion of payment of tax on net wealth. (2) A tender of immunity made to, and accepted by, the person concerned shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made or from the imposition of any penalty under this Act. (3) If it appears to the Central Government that any person to whom immunity has been tendered under this section has not complied with the condition on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government may record a f inding to that effect, and thereupon the immunity shall be deemed to have been withdrawn, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter and shall also become liable to the imposition of any penalty under this Act to which he would otherwise have been liable.] 2[37. Power to take evidence on oath, etc. (1) 3[The 4[Assessing Officer], Valuation Officer,] 5[Deputy Commissioner (Appeals)], 6[Commissioner (Appeals),] 7[Chief Commissioner or Commissioner] and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 19 08), when trying a suit in respect of the following matters, namely: (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and other documents; and (d) issuing commissions. 8[(1A) If the Director General or Director or 9[Joint Director ] or 10[Assistant Director or Deputy Director], or the authorised officer referred to in sub -section ( 1) of s ection 37A before he takes action under clauses ( i) to ( vi) of that sub -section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes o f making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub -section ( 1) on the wealth -tax authorities referred to in that sub -section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth -tax authority.] 11* * * * * 1. Ins. by Act 46 of 1964, s. 34 (w.e.f. 1 -4-1965). 2. Subs. by s. 35, ibid., for section 37 (w.e.f. 1 -4-1965). 3. Subs. by Act 45 of 1972, s. 17, for The Wealth -Tax Officer, (w.e.f. 1 -1-1973). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w .e.f. 1 -4-1988). 5. Subs. by s. 127, ibid., for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 6. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 7. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 8. Ins. by Act 26 of 1988, s. 64 (w.e.f. 1 -6-1988). 9. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). 10. Subs. by s. 66, ibid., for Assistant Director (w.e.f. 1 -10-1998). 11. Sub -section ( 2) omitted by Act 4 of 1988, s. 153 (w.e.f. 1-4-1989). 87 (3) Subject to any rules made in this behalf, any authority referred to in sub -section ( 1) 1[or sub - section ( 1A)] may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this Act: Provided that 2[a 3[Assessing Officer] or a Valuation Officer] 1[or an 4[Assistant Director or Deputy Director]] shall not (a) impound any books of account or other documents without recording his reasons for so doing, or (b) retain in his custody any such books or documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of 5[the Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be]. (4) Any proceeding under this Act before a wealth -tax authority or the Tribunal 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).] 6[37A. Power of search and seizure. (1) Where the 7[Director General or Director] or the 8[Chief Commissioner or Commissioner] or any such 9[Joint Director] or 10[Joint Commissioner] as may be empowered in this behalf by the Board, in consequence of information in his possession, has reason to believe that (a) any person to whom a notice under sub -section ( 4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents, has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons, or (b) any person to whom a notice or summ ons as aforesaid has been or might be issued will not, or would not, produce, or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under this Act, or (c) any person is in possession of 11[any money, bullion, jewellery or other valuable article or thing] disproportionate to his known assets, particulars of which will be useful for, or relevant to, any proceeding under this Act, then, (A) the 7[Director -General or Director] or the 8[Chief Co mmissioner or Commissioner], as the case may be, may authorise any 9[Joint Director], 10[Joint Commissioner], 12[Assistant Director or Deputy Director] , 13[14[Assistant Commissioner or Deputy Commissioner] or Income -tax Officer], or 1. Ins. by Act 4 of 1988, s. 153 (w.e.f. 1 -4-1989). 2. Subs. by Act 45 of 1972, s. 17, for a Wealth -Tax Officer (w.e.f. 1 -1-1973). 3. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 4. Subs. by Act 21 of 1998, s. 6 6, for Assistant Director (w.e.f. 1 -10-1998). 5. Subs. by Act 26 of 1988, s. 64, for the Chief Commissioner or Commissioner therefor (w.e.f. 1 -4-1988). Earlier the words Chief Commissioner or Commissioner were substituted by Act 4 of 1988, s. 127, fo r Commissioner (w.e.f. 1 -4-1988). 6. Subs. by Act 41 of 1975, s. 102, for section 37A (w.e.f. 1 -10-1975). Earlier section 37A was inserted by Act 46 of 1964, s. 36 (w.e.f. 1 -4-1965). 7. Subs. by Act 4 of 1988, s. 127, for Director of Inspection (w.e.f. 1-4-1988). 8. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 9. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Deputy Director of Inspection (w.e.f. 1 -4-1988). 10. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assistant Commissioner (w.e.f. 1 -4-1988). 11. Subs. by Act 4 of 1988, s. 154, for any articles or things including money (w.e.f. 1 -4-1988). 12. Subs. by Act 21 of 1998, s. 66, for Assistant Director (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 154, for Assistant Director of Inspection (w.e.f. 1 -4-1988). 13. Subs. by Act 4 of 1988, s. 154, for or Wealth -tax Officer (w.e.f. 1 -4-1988). 14. Subs. by Act 21 of 1998, s. 66, for Assistant Commissioner (w.e.f. 1 -10-1998). 88 (B) such 1[Joint Director] or 2[Joint Commissioner] may authorise any 3[4[Assistant Director or Deputy Director] ] or 5[6[Assistant Commissioner or Deputy Commissioner] or Income -tax Officer], (the officer so authorised in all cases being hereafter in this section referred to as th e authorised officer) to (i) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account or other documents, 7[money, bullion, jewellery or other valuable article or thing] are kept; (ii) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account or other docume nts, 7[money, bullion, jewellery or other valuable article or thing]; (iii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause ( i) where the keys thereof are not available; 8[(iv) seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search;] (v) place marks of identification on any such books of account or other documents or make, or cause to be ma de, extracts or copies therefrom; (vi) make a note or an inventory of 9[any money, bullion, jewellery or other valuable article or thing] found which, in his

an inventory of 9[any money, bullion, jewellery or other valuable article or thing] found which, in his opinion, will be useful for, or relevant to, any proceeding under this Act: Provided that where an y building, place, vessel, vehicle or aircraft referred to in clause ( i) is within the area of jurisdiction of any 10[Chief Commissioner or Commissioner] but such 10[Chief Commissioner or Commissioner] has no jurisdiction over the person referred to in clau se (a) or clause (b) or clause ( c) of this sub -section, then, notwithstanding anything contained in 11[section 8], it shall be competent for him to exercise the powers under this sub -section in all cases where he has reason to believe that any delay in gett ing the authorisation from the 10[Chief Commissioner or Commissioner] having jurisdiction over such person may be prejudicial to the interests of the revenue : 12[Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised o fficer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such authorised officer and such action of the autho rised officer shall be deemed to be seizure of such valuable article or thing under clause ( iv) of this sub -section.] 1. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Deputy Director of Inspection (w.e.f. 1 -4-1988). 2. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assistant Commissioner (w.e.f. 1 -4-1988). 3. Subs. by Act 4 of 1988, s. 154, for Assistant Director of Inspection (w.e.f. 1 -4-1988). 4. Subs. by Act 21 of 1998, s. 66, for Assistant Director (w.e.f. 1 -10-1998). 5. Subs . by Act 4 of 1988, s. 154, for or Wealth -tax Officer (w.e.f. 1 -4-1988). 6. Subs. by Act 21 of 1998, s. 66, for Assistant Commissioner (w.e.f. 1 -10-1998). 7. Subs. by Act 4 of 1988, s. 154, for articles or things including money (w.e.f. 1 -4-1989). 8. Subs. by s. 154, ibid., for clause ( iv) (w.e.f. 1 -4-1989). 9. Subs. by s. 154, ibid., for any articles or things including money (w.e.f. 1 -4-1989). 10. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 11. Subs. by s. 154, ibid., for sectio n 10 (w.e.f. 1 -4-1988). 12. Ins. by s. 154, ibid. (w.e.f. 1 -4-1989). 89 (2) Where any 1[Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to suspect that any books of account or other documents, 2[money, bullion, jewellery or other valuable article or thing] in respect of which an officer has been authorised by the 3[Director General or Director] or any other 1[Chief Commissioner or Commissioner] or any such 4[Joint Director] or 5[Joint Commissioner] as may be empowered in this behalf by the Board to take action under clauses ( i) to ( vi) of sub -section ( 1) are kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under sub -sectio n (1), such 1[Chief Commissioner or Commissioner] may, notwithstanding anything contained in 6[section 8], authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft. (3) The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub -section ( 1) or sub-section ( 2) and it shall be the duty of ev ery such officer to comply with such requisition. 7[(3A) The authorised officer may, where it is not practicable to seize any books of account, other documents, money, bullion, jewellery or other valuable article or thing, for reasons other than those ment ioned in the second proviso to sub -section ( 1), serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer an d such officer may take such steps as may be necessary for ensuring compliance with this sub -section. Explanation. For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub -section shall not be deemed to be seizu re of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause ( iv) of sub -section ( 1).] (4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account or other documents, articles or things including money and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act. 7[Explana tion.For the removal of doubts, it is hereby declared that the examination of any person under this sub -section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of matters relevant for the purposes of any investigation connected with any proceedings under this Act.] (5) Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a se arch, it may be presumed that (i) such books of account or other documents, articles or things including money belong to such person; (ii) the contents of such books of account or other documents are true; and (iii) the signature and every other part of s uch books of account or other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested. 1. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 2. Subs. by s. 154, ibid., for articles or things including money (w.e.f. 1 -4-1989). 3. Subs. by s. 127, ibid., for Director of Inspection (w.e.f. 1 -4-1988). 4. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Deputy Director of Inspection (w.e.f. 1 -4-1988). 5. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assistant Commissioner (w.e.f. 1 -4-1988). 6. Subs. by Act 4 of 1988, s. 154, for section 10 (w.e.f . 1-4-1988). 7. Ins. by s. 154, ibid. (w.e.f. 1 -4-1989). 90 1[(5A) Where any money, bullion, jewellery or other valuable article or thing (hereafter in this section and in sections 37B and 37C referred to as the assets) is seized under sub -section ( 1) or sub -section ( 2), the Assessing Officer, after affording a reasonable opportunity to the person concerne d of being heard and making such inquiry as may be prescribed, shall, within one hundred and twenty days of the seizure, make an order, with the previous approval of the 2[Joint Commissioner ], (i) estimating the undisclosed net wealth in a summary manner to the best of his judgment on the basis of such materials as are available with him; (ii) calculating the amount of tax on the net wealth so estimated in accordance with the provisions of this Act; (iii) determining the amount of interest payable and the amount of any penalty imposable in accordance with the provisions of this Act, as if the order had been the order of regular assessment; (iv) specifying the amount that will be required to satisfy any existing liability under this Act in respect of which s uch person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred it in clauses ( ii), (iii) and ( iv) and forthwith release the rem aining portion, if any, of the assets to the person from whose custody they were seized: Provided that where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses ( ii), (iii) and ( iv) or any part thereof, the Assessing Officer, may with the previous approval of the Chief Commissioner or Commissioner release the assets or such part thereof as he may deem fit in the circumstances of the case. (5B) The assets retained under sub -section ( 5A) may be dealt with in accordance with the provisions of section 37C. (5C) If the Assessing Officer is satisfied that the seized assets or any part thereof were held by such person for or on behalf of any other person, the Assessing Officer may proceed under sub -section ( 5A) against such other person and all the provisions of this section shall apply accordingly.] (6) The books of account or other documents, seized under sub -section ( 1) or sub -section ( 2), shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the 3[Chief Commissioner or Commissioner] for such retention is obtained: Provided that the 3[Chief Commis sioner or Commissioner] shall not authorise the retention of the books of account or other documents for a period exceeding thirty days after all the proceedings under this Act in respect of the years for which the books of account or other documents are r elevant are completed. 1[(6A) An order under sub -section ( 3A) shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to be recorded in writing by him, extends the period of opera tion of the order beyond sixty days, after obtaining the approval of the 4[Director or, as the case may be, Commissioner] for such extension: Provided that the 4[Director or, as the case may be, Commissioner] shall not approve the extension of the period f or any period beyond the expiry of thirty days after the completion of the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant.] 1. Ins. by Act 4 of 1988, s. 154 (w.e.f. 1 -4-1989). 2. Subs. by Act 21 of 1998, s. 66, for Deputy Commissioner (w.e.f. 1 -10-1998). 3. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 4. Subs. by Act 49 of 1991, s. 82, for Chief Commissioner or Commissioner (w.e.f. 1 -10-1991). 91 (7) The person from whose custody any books of account or other documents are seized under sub-section ( 1) or sub -section ( 2) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf at such place and time as the authorised officer may appoint in this behalf. (8) Where the authorised officer has no jurisdiction over the person referred to in clause ( a) or clause (b) or clause ( c) of sub -section ( 1), the books of account or other documents seized under that sub -section shall be handed over by the authorised officer to the 1[Assessing Officer] having jurisdiction over such person within a period of fifteen days of such seizure and thereupon the power s exercisable by the authorised officer under sub -section ( 6) or sub -section ( 7) shall be exercisable by such 1[Assessing Officer]. (9) If a person legally entitled to the books of account or other documents seized under sub -section (1) or sub -section ( 2) objects for any reason to the approval given by the 2[Chief Commissioner or Commissioner] under sub -section ( 6), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account o r other documents. 3[(9A) If any person objects for any reason to an order made under sub -section ( 5A), he may, within thirty days from the date of such order, make an application to the Chief Commissioner or Commissioner stating therein the reasons for su ch objection and requesting for appropriate relief in the matter.] 4[(10) On receipt of the

ating therein the reasons for su ch objection and requesting for appropriate relief in the matter.] 4[(10) On receipt of the application under sub -section ( 9), the Board, or on receipt of the application under sub -section ( 9A), the Chief Commissioner or Commissioner, may, after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit.] (11) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches shall apply, so far as may be, to searches under this section. (12) The Board may make rules in relation to searches or seizure under this section; and in particular and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer (i) for o btaining ingress into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available; (ii) for ensuring the safe custody of any books of account or other documents seized. 3[Explanation 1. In computing the perio d referred to in sub -section ( 5A) for the purposes of that sub-section, any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. Explanation 2. In this section, the word proceeding mean s any proceeding in respect of any year under this Act which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also proceedings under this Act which may be com menced after such date in respect of any year.] 37B. Power to requisition books of account, etc. (1) Where the 5[Director General or Director] or the 2[Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to believe that (a) any person to whom a notice under sub -section ( 4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produce d, such books of account or other documents as required by such notice or summons and the said books of account or other documents have been taken into custo sdy by any officer or authority under any other law for the time being in force, or 1. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 2. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 3. Ins. by s. 154, ibid. (w.e.f. 1 -4-1989). 4. Subs. by s. 154, ibid., for sub -section ( 10) (w.e.f. 1 -4-1989). 5. Subs. by s. 127, ibid., for Director of Inspection (w.e.f. 1 -4-1988). 92 (b) any books o f account or other documents will be useful for, or relevant to, any proceeding under this Act and any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce or cause to be produced such books of account or other documents on the return of such books of account or other documents by any officer or authority by whom or which such books of account or other documents have been taken into custody under any other law for the time being in force, or (c) 1[any a ssets] disproportionate to the known assets of any person, particulars of which will be useful for, or relevant to, any proceeding under this Act, have been taken into custody by any officer or authority under any other law for the time being in force, fro m the possession of such person, then, the 2[Director -General or Director] or the 3[Chief Commissioner or Commissioner] may authorise any 4[Joint Director], 5[Joint Commissioner], 6[Assistant Director or Deputy Director] 7[, 8[Assistant Commissioner or Deputy Commissioner] or Income -tax Officer] (hereafter in this section referred to as the requisitioning officer) to require such officer or authority 9[to deliver such books of account, other documents, or assets to the requisitioning officer]. (2) On a r equisition being made under sub -section ( 1), 9[the officer or authority referred to in clause ( a) or clause ( b) or clause ( c), as the case may be, of that sub -section shall deliver the books of account, other documents, or assets to the requisit ioning officer either forthwith or when such officer or authority is of the opinion that it is no longer necessary to retain the same in his or its custody.] 10[(3) Where any books of account, other documents, or assets have been delivered to the requisitioning officer, the provisions of sub -sections ( 5) to ( 12) (both inclusive) of section 37A and section 37C shall, so far as may be, apply as if such books of account, other documents, or assets had been seized under sub-section ( 1) of section 37A b y the requisitioning officer from the custody of the person referred to in clause ( a) or clause ( b) or clause ( c) of sub -section ( 1) of this section and as if for the words the authorised officer occurring in sub -sections ( 5) to ( 12) aforesaid, the words the requisitioning officer were substituted.] ] 11[37C. Application of retained assets. (1) The assets retained under sub -section ( 5A) of section 37A may be dealt with in the following manner, namely: (i) the amount of the existing liability referred to in clause ( iv) of the said sub -section and the amount of the liability determined on completion of the regular assessment or reassessment for all the assessment years for which the net wealth referred to in clause ( i) of that sub -section is assessable to tax (including any penalty levied or interest payable, in connection with such assessment or reassessment) and in respect of which the assessee is in default or is deemed to be in default may be recovered out of such assets; (ii) if the assets consist solel y of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause ( i) and the assessee shall be discharged of such liabilities to the extent of the money so appli ed; 1. Subs. by Act 4 of 1988, s. 155, for any articles or things including mon ey (w.e.f. 1 -4-1989). 2. Subs. by s. 127, ibid., for Director of Inspection (w.e.f. 1 -4-1988). 3. Subs. by s. 127, ibid., for Commissioner (w.e.f. 1 -4-1988). 4. Subs. by Act 21 of 1998, s. 66, for Deputy Director (w.e.f. 1 -10-1998). Earlier the quot ed words were substituted by Act 4 of 1988, s. 127, for Deputy Director of Inspection (w.e.f. 1 -4-1988). 5. Subs. by s. 66, ibid., for Deputy Commissioner (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for Inspecting Assistant Commissioner (w.e.f. 1 -4-1988). 6. Subs. by s. 66, ibid., for Assistant Director (w.e.f. 1 -10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 154, for Assistant Director of Inspection (w.e.f. 1 -4-1988). 7. Subs. by Act 4 of 1988, s. 155, for or Wealth -tax Officer (w.e.f. 1 -4-1988). 8. Subs. by Act 21 of 1998, s. 66, for Assistant Commissioner (w.e.f. 1 -10-1998). 9. Subs. by Act 4 of 1988, s. 155, for clauses ( i) and ( ii) (w.e.f. 1 -4-1989). 10. Subs. by s. 155, ibid., for sub -section ( 3) (w.e.f. 1 -4-1989). 11. Ins. by s. 156, ibid. (w.e.f. 1 -4-1989). 93 (iii) the assets other than money may also be applied for the discharge of any such liability referred to in clause ( i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer under authorisation from the Chief Commissioner or Commissioner under sub -section ( 5) of section 226 of the Income -tax Act as made applicable to this Act by section 32, and the Assessing Officer may recover the amount of such liabilit ies by the sale of such assets and such sale shall be effected in the manner laid down in the Third Schedule to the Income -tax Act as made applicable to this Act by section 32. (2) Nothing contained in sub -section ( 1) shall preclude the recovery of the amo unt of liabilities aforesaid by any other mode laid down in this Act. (3) Any assets or proceeds thereof which remain after the liabilities referred to in clause ( i) of sub - section ( 1) are discharged shall be forthwith made over or paid to the persons from whose custody the assets were seized. (4) (a) The Central Government shall pay simple interest at the rate of fifteen per cent per annum on the amount by which the aggregate of the money retained under section 37A and of the proceeds, if any, of the asset s sold towards the discharge of the existing liability referred to in clause ( iv) of sub -section (5A) of that section exceeds the aggregate of the amounts required to meet the liabilities referred to in clause ( i) of sub -section ( 1) of this section. (b) Such interest shall run from the date immediately following the expiry of the period of six months from the date of the order under sub -section ( 5A) of section 37A to the date of the regular assessment or reassessment referred to in clause ( i) of sub -section (1) or, as the case may be, to the date of the last of such assessments or reassessments.] 38. Information, returns and statements. 1[Where, for the purposes of this Act], it appears necessary for 2[any wealth -tax authority] to obtain any statement or information from any individual, company 3[(including a banking company)], firm, Hindu undivided family or other person, 2[such wealth -tax authority] may serve a notice requiring such individual, company, firm, Hindu undivided family or other perso n, on or before a date to be therein specified, to furnish such statement or information on the points specified in the notice, and the individual or the principal officer concerned or the manager of the Hindu undivided family, as the case may be, shall, n otwithstanding anything in any law to the contrary, be bound to furnish such statement or information to 2[such wealth -tax authority]: Provided that no legal practitioner shall be bound to furnish any statement or information under this section based on an y professional communications made to him otherwise than as permitted by section 126 of the Indian Evidence Act, 1872 (1 of 1872). 4[38A. Powers of Valuation Officer, etc. (1) For the purposes of this Act, a Valuation Officer or any overseer, surveyor or a ssessor authorised by him in this behalf may, subject to any rules made in this behalf and at such reasonable times as may be prescribed, (a) enter any land within the limits of the area assigned to the Valuation Officer, or (b) enter any land, building o r other place belonging to or occupied by any person in connection with whose assessment a reference has been made under section 16A to the Valuation Officer, or (c) inspect any asset in respect of which a reference under section 16A has been made to the Valuation Officer, 1. Subs. by Act 4 of 1988, s. 157, for Where, for the purposes of determining the wealth -tax payable by any person (w.e.f. 1 -4-1989). 2. Subs. by s. 157, ibid., for the Wealth -tax Officer (w.e.f. 1 -4-1989). 3. Ins. by s. 157, ibid. (w.e.f. 1 -4-1989). 4. Ins. by Act 45 of 1972, s. 18 (w.e.f. 15 -11-1972). 94 and require any person in charge of, or in occupation or possession of, such land, building or other place or asset to afford him the necessary facility to survey or inspect such land, building or other place or asset or estimate its value or inspect any books of account, document or record which may be relevant for the valuation of such land, building or other place or asset and gather other particulars relating to such land, building or other place or asset: Provided that no Valuation Officer, overseer, surveyor or assessor shall enter any building or place referred to in clause ( b), or inspect any asset referred to in clause ( c) (unless with the consent of the person in charge of, or in occupation or possession of, such build ing, place or asset) without previously giving t o such person at least two days notice in writing of his intention to do so. (2) If a person who, under sub -section ( 1), is required to afford any facility to the Valuation Officer or the overseer, surveyor or assessor, either refuses or evades to afford such facility, the Valuation Officer shall have all the powers under sub -sections ( 1) and ( 2) of section 37 for enforcing compliance of the requirements made.] 39. Effect of transfer of authorities on pending proceedings. Whenever in respect of any proceeding under this Act any wealth -tax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises such jurisdiction, the authority so succeeding may continue the proceeding from th e stage at which the proceeding was left by his predecessor: 1[Provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order

see concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order of assessment is pass ed against him, he be reheard.] 40. Computation of periods of limitation. In computing the period of limitation prescribed for an appeal under this Act or for an application under section 27, the day on which the order complained of was made and the time r equisite for obtaining a copy of such order shall be excluded. 41. Service of notice. (1) A notice or a requisition under this Act may be served on the person therein named either by post or as if it were a summons issued by a court under the Code of Civil Procedure, 1908 (5 of 1908). (2) Any such notice or requisition may, in the case of a firm or a Hindu undivided family, be addressed to any member of the firm or to the manager or any adult male member of the family, 2[and in the case of a company or any other association of persons ] be addressed to the principal officer thereof. 3[(3) After a finding of total partition has been recorded by the 4[Assessing Officer] under section 20 in respect of any Hindu family, notices under this Act in respect of the ne t wealth of the Hindu family shall be served on the person who was the last manager of the Hindu family, or, if such person is dead, then on all surviving adults who were members of the Hindu family immediately before the partition.] 5[(4) Where an associa tion of persons referred to in section 21AA is dissolved, notices under this Act in respect of any matter relating to the association may be served on any person who was a member of the association immediately before its dissolution.] 6[42. Notice deemed to be valid in certain circumstances. Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be serve d upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was (a) not served upon him; or 1. Added by Act 46 of 1964, s. 37 (w.e.f. 1 -4-1965). 2. Subs. by Act 3 of 1989, s. 76, for and in the case of any other association of persons (w.e.f. 1 -4-1989). 3. Ins. by Act 46 of 1964, s. 38 (w.e.f. 1 -4-1965). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1989). 5. Ins . by Act 16 of 1981, s. 31 (w.e.f. 1 -4-1981). 6. Ins. by Act 18 of 2008, s. 66 (w.e.f. 1 -4-2008). Earlier section 42 was omitted by Act 5 of 1964, s. 50 (w.e.f. 1 -4-1964). 95 (b) not served upon him in time; or (c) served upon him in an improper manner: Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment.] 1[42A. Publication of information respecting assessees. (1) If the Central Government is of opinion that it is necessary or expedient in the public interest to publish the names of any assessees and any other particulars relating to any proceedings 2[or prosecuti ons] under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit.] 3[(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the ti me for presenting an appeal to the 4[Deputy Commissioner (Appeals)] 5[or, as the case may be, the Commissioner (Appeals)] has expired without an appeal having been presented or the appeal, if presented, has been disposed of.] 6[Explanation .In the case of a company, the names of the directors, secretaries and treasurers, or managers of the company, may also be published if, in the opinion of the Central Government, the circumstances of the case justify it.] 42B. Disclosure of information respecting assessee s.Where a person makes an application to the 7[Chief Commissioner or Commissioner] in the prescribed form for any information relating to any assessee in respect of any assessment made under this Act, the 7[Chief Commissioner or Commissioner] may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any court of law.] 2[42C. Return of wealth, etc., not to be invalid on certain grounds. No return of wealth, assessment, notice, summons or other proceeding furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of an y of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of wealth, assessment, notice, summons or other proceeding if such return of wealth, assessment, notice, su mmons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act.] 8[42D. Presumption as to assets, books of account, etc. 9[(1)] Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a search under section 37A, it may, in any proceeding under this Act, be presumed that (i) such books of account or other documents, articles or things including money b elong to such person; (ii) the contents of such books of account or other documents are true; and (iii) the signature and every other part of such books of account or other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.] 1. Subs. by Act 5 of 1964, s. 50, for sections 42A and 42B (w.e.f. 1 -4-1964). Earli er these sections were inserted by Act 28 of 1960, s. 11 (w.e.f. 1 -4-1960). 2. Ins. by Act 41 of 1975, s. 103 (w.e.f. 1 -10-1975). 3. Subs. by s. 103, ibid., for sub -section ( 2) (w.e.f. 1 -10-1975). 4. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 5. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 6. Ins. by Act 3 of 1989, s. 77 (w.e.f. 1 -4-1989). 7. Subs. by Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 8. Ins. by Act 22 of 2 007, s. 93 (w.r.e.f. 1 -10-1975). 9. Section 42D renumbered as sub -section ( 1) thereof by Act 18 of 2008, s. 67 (w.r.e.f. 1 -10-1975). 96 1[(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 37B, then, the provisions of sub -section ( 1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause ( a) or clause ( b) or clause ( c), as the case may be, of sub -section ( 1) of section 37B, had been found in the possession or control of that person in the course of a search under section 37A.] 43. Bar of jurisdiction. No suit shall lie in any civil court to set aside or modify 2[any proceeding taken or order made ] under this Act, and no prosecution, suit or other legal proceeding shall lie against 3[the Government or] any officer of the Government for anything in good faith done or intended to be done under this Act. 4[44. Appearance before wealth -tax authorities b y authorised representatives. (1) Any assessee who is entitled to or required to attend before any wealth - tax authority or the Appellate Tribunal in connection with any proceeding under this Act, except where he is required under this Act to attend in person, may attend by a person who would be entitled to represent him before any income -tax authority or the Appellate Tribunal under section 288 of the Income -tax Act. (2) Notwithstanding anything in sub -section ( 1) (i) no person who has been convicted of an offence connected with any wealth -tax proceeding or on whom a penalty has been imposed under this Act other than a penalty imposed on him under clause ( i) or clause ( ii) of sub -section ( 1) of section 18 shall be qualified to represent an assessee under sub-section ( 1) for such time as the 5[Chief Commissioner or Commissioner] may by order determine; (ii) if any person who is not a legal practitioner or a chartered accountant, is found guilty of misconduct in connection with any wealth -tax proceeding by t he prescribed authority, the prescribed authority may direct that he shall thenceforth be disqualified to represent an assessee under sub - section ( 1); (iii) no person not qualified to represent an assessee under the Indian Income -tax Act, 1922 (11 of 1922) , the Estate Duty Act, 1953 (34 of 1953), the Expenditure -tax Act, 1957 (29 of 1957), or the Gift-tax Act, 1958 (18 of 1958), shall be entitled to appear on behalf of any assessee under this Act: Provided that any order or direction under clause ( i) or cla use ( ii) shall be subject to the following conditions, namely: (a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard; (b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and (c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where a n appeal has been preferred, until the disposal of the appeal. 1. Ins. by Act 18 of 2008, s. 67 (w.r.e.f. 1 -10-1975). 2. Subs. by Act 26 of 1988, s. 65, for any order made (w.r.e.f. 1-3-1988). Earlier the quoted words were substituted by Act 11 of 1987, s. 89, for any assessment made (w.r.e.f. 1 -3-1987). 3. Ins. by Act 5 of 1964, s. 50 (w.e.f. 1 -4-1964). 4. Subs. by Act 46 of 1964, s. 39, for section 44 (w.e.f. 1 -4-1965). 5. Subs. b y Act 4 of 1988, s. 127, for Commissioner (w.e.f. 1 -4-1988). 97 44A. Agreement for avoidance or relief of double taxation with respect to wealth -tax.1[The Central Government may enter into an agreement with the Government of any reciprocating country (a) for the avoidance or relief of double taxation with respect to wealth -tax payable under this Act and under the corresponding law in force in the reciprocating country, or (b) for exchange of information for the prevention of evasion or avoidance of wealth -tax chargeable under this Act or under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or (c) for recovery of tax under this Act and under the corresponding law in force in that country, and may, by no tification in the Official Gazette, make such provision as may be necessary for implementing the agreement.] Explanation. The expression reciprocating country for the purposes of this Act means 2[any country outside India or any territory outside India] which the Central Government may, by notification in the Official Gazette, declare to be a reciprocating country. 44B. Countries with which no agreement exists. Where the net wealth of any assessee includes any foreign wealth and he proves that, in respect of such foreign wealth, he has paid in any country, with which there is no reciprocal arrangement under section 44A for the relief or avoidance of double taxation, a tax in respect of wealth, under the law in force in that country, he shall be entitled to the deduction from the Indian wealth -tax payable by him of a sum calculated on such doubly taxed foreign wealth at the Indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are eq ual. Explanation. In this section (1) the expression Indian wealth -tax means wealth -tax charged in accordance with the provisions of this Act; (2) the expression Indian rate of tax means the rate determined by dividing the amount of Indian wealth -tax after deduction of any relief due under the provisions of this Act but before the deduction of any relief due under this section by the net wealth; (3) the expression rate of tax of the said country means any tax in respect of wealth, actually paid in the said country, in accordance with the corresponding laws in force in the said country after d

in respect of wealth, actually paid in the said country, in accordance with the corresponding laws in force in the said country after deduction of all relief due but before deduction of any relief due in the said country in respect of double taxation, divided by the whole amount of the wealth a ssessed in the said country; (4) the expression foreign wealth, in relation to any assessee, means the value of all his assets located in any country outside India as reduced by the value of his debts in that country.] 3[44C. Rounding off of net wealth. The amount of net wealth computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of one hundred rupees and, for this purpose, any part of a rupee consisting of paise shall be ignored and thereafter, if such amount contains a part of one hundred rupees, then, if such part is fifty rupees or more, the amount shall be increased to the next higher amount which is a multiple of one hundred and, if such part is less than fifty rupees, the amount shall be reduc ed to the next lower amount which is a multiple of one hundred; and the amount so rounded off shall be deemed to be the net wealth of the assesse e for the purposes of this Act. 1. Subs. by Act 16 of 1972, s. 49, for certain words (w.e.f. 1 -4-1972). 2. Subs. by Act 33 of 2009, s. 84, for any country (w.e.f. 1 -10-2009). 3. Ins. by Act 42 of 1970, s. 65 (w.e.f. 1 -4-1971). 98 44D. Rounding off of tax, etc. The amount of wealth -tax, interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consis ting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and if such part is less than fifty paise, it shall be ignored.] 45. Act not to apply in certain cases. 1[No tax shall be levied under this Act in respect of the net wealth of ] 2* * * * * (f) any company registered under section 25 of the Companies Act, 1956 (1 of 1956); 3[(g) any co -operative society;] 4[(h) any social club;] 5[(i) any political party. Explanation .For the purposes of clause ( i), politica l party shall have the meaning assigned to it in the Explanation to section 13A of the Income -tax Act;] 6[(j) a Mutual Fund specified under clause ( 23D) of section 10 of the Income -tax Act;] 7[(k) the Reserve Bank of India incorporated under the Reserve Bank of India Act, 1934 (2 of 1934).] 46. Power to make rules. (1) The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) In particular, and wi thout prejudice to the generality of the foregoing power, rules made under this section may provide for (a) the manner in which the market value of any asset may be determined; (b) the form in which returns under this Act shall be made and the manner in w hich they shall be verified; 8[(ba) the documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents which may not be furnished along with the return but shall be produced before the Assessing Officer on demand under section 14A; (bb) the class or classes of persons who shall be required to furnish the return in electronic form; the form and the manner in which the return in electronic form may be furnished; the documents, statements, receipts, certificates, audit reports, reports of registered valuer or any other documents which may not be furnished along with the return in electro nic form and the computer resource or electronic record to which such return may be transmitted under section 14B; ] (c) the form in which appeals and applications under this Act may be made, and the manner in which they shall be verified; 1. Subs. by Act 16 of 1972, s. 50, for The provisions of this Act shall not apply to (w.e.f. 1 -4-1972). 2. Clauses (a) to ( e) omitted by Act 18 of 1992, s. 99 (w.e.f. 1 -4-1993). ] 3. Ins. by Act 16 of 1972, s. 50 (w.r.e.f. 1 -4-1957). 4. Subs. by Act 18 of 1992, s. 99, for clause ( h) (w.e.f. 1 -4-1993). Earlier clause ( h) was inserted by Act 25 of 1975, s. 28 (w.r.e.f. 1 -4-1957) 5. Ins. by Act 29 of 1978, s. 3 (w.e.f. 1 -4-1979). 6. Ins. by Act 4 of 1988, s. 158 (w.e.f. 1 -4-1988). 7. Ins. by Act 23 of 2012, s. 118 (w.r.e.f. 1 -4-1957). 8. Ins. by Act 17 of 2013, s. 63 (w.e.f. 1 -6-2013). 99 1[(cc) the circumstances in which, the conditions subject to which, and the manner in which, the 2[Deputy Commissioner (Appeals)] 3[or the Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed t o produce before the 4[Assessing Officer];] (d) the form of any notice of demand under this Act; 5[(dd) the procedure to be followed in calculating interest payable by assessees or interest payable by the Government to assessees under any provision of this Act, including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by ass essees may be ignored;] 6[(e) the areas within which Valuation Officers may exercise jurisdiction; (ee) the manner in which and the conditions subject to which Valuation Officers, overseers, surveyors and assessors may exercise their powers under sub-section ( 1) of section 38A;] (f) any other matter which has to be, or may be, prescribed for the purposes of this Act. 7[(3) The power to make rules conferred by 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 rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.] 8[(4) The Central Government shall cause every rule made under this Act 9[and the rules of procedure framed by the Settlement Commission under sub -section ( 7) of section 22F] to be laid as soon as may be after it is made before each House of P arliament while it is in session for a total period of thirty days which may be comprised in one session 10[or in two or more successive sessions ], and if before the expiry of the session 11[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 m odification or annulment shall be without prejudice to the validity of anything previously done under that rule.] 12[46A. Power to make exemption, etc., in relation to certain Union territories. If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of this Act to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, or in the case of the Union territor y of Pondicherry, for implementing any provision of the Treaty of Cession concluded between France and India on the 28th day of May, 1956, that Government may, by general or special order, make an exemption, reduction in rate or other modification in respe ct of wealth -tax in favour of any class of assets or in regard to the whole or any part of the net wealth of any assessee or class of assessees: 1. Ins. by Act 16 of 1972, s. 51 (w.e.f. 1 -4-1972). 2. Subs. by Act 4 of 1988, s. 127, for Appellate Assistant Commissioner (w.e.f. 1 -4-1988). 3. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10 -7-1978). 4. Subs. by Act 4 of 1988, s. 127, for Wealth -tax Officer (w.e.f. 1 -4-1988). 5. Ins. by Act 42 of 1970, s. 65 (w.e.f. 1 -4-1971). 6. Subs. by Act 45 of 1972, s. 19, for clause ( e) (w.e.f. 1 -4-1988). 7. Subs. by Act 26 of 1974, s. 17, for sub -section ( 3) (w.e.f. 18 -8-1974). 8. Subs. by Act 46 of 1964, s. 40, for sub -section ( 4) (w.e.f. 1 -4-1965). 9. Ins. by Act 32 of 1994, s. 53 (w.e.f. 1 -6-1994). 10. Subs. by Act 41 of 1975, s. 105, for or in tw o successive sessions (w.e.f. 1 -4-1976). 11. Subs. by s. 105, ibid., for in which it is so laid or the session immediately following (w.e.f. 1 -4-1976). 12. Ins. by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963) (w.e.f. 1 -4-1963). 100 Provided that the power conferred by this section shall not be exercisable after the 31st day of March, 1967, e xcept for the purposes of rescinding an exemption, reduction or modification already made.] 1[47. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act as amended by the Direct Tax Laws (Amendment) Act, 1 987, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of three years from the 1st day of April, 1988. (2) Every order made under sub -section ( 1) shall be laid before each House of Parliament.] 1. Ins. by Act 4 of 1988, s. 159 (w.e.f. 1 -4-1988). 101 1[SCHEDULE I] 2[[See section 3(1)]] RATES OF WEALTH -TAX 3[PART I (1) In the case of every individual or Hindu undivided family, not being a Hindu undivided family, to which item (2) of this Part applies, Rate of tax (a) where the net wealth does not exceed Rs. 2,50,000 Nil; (b) where the net wealth exceeds Rs. 2,50,000 but does not exceed Rs. 10,00,000 per cent . of the amount by which the net wealth exceeds Rs. 2,50,000; (c) where the net wealth exceeds Rs 10,00,000 but does not exceed Rs. 20,00,000 Rs. 3,750 plus 1 per cent . of the amount by which the net wealth exceeds Rs. 10,00,000; (d) where the net wealth exceeds Rs. 20,00,000 Rs. 13,750 plus 2 per cent . of the amount by which the net wealth exceeds Rs. 20,00,000. (2) In the case of every Hindu undivided family which has at least one member whose net wealth assessable for the assessment year exceeds Rs. 2,50,000, Rate of tax (a) where the net wealth does not exceed Rs. 1,50,000 Nil; (b) where the net wealth exceeds Rs. 1,50,000 but does not exceed Rs. 5,00,000 1 per cent . of the amount by which the net wealth exceeds Rs. 1,50,000; (c) where the net wealth exceeds Rs. 5,00,000, but does not exceed Rs. 10,00,000 Rs. 3,500 plus 2 per cent . of the amount by which the net wealth exceeds Rs. 5,00,000; (d) where the net wealth exceeds Rs. 10,00,000 Rs. 13,500 plus 3 per cent . of the amount by which the net wealth exceeds Rs. 10,00,000.] 4[Surcharge on wealth -tax The amount of wealth -tax computed in accordance with the provisions of this Part shall, in relation to the assessment year commencing on the 1st day of April, 1988 be increased by surcharge calculated at the rate of ten per cent of such wealth -tax.] 5* * * * * 6* * * * *

of such wealth -tax.] 5* * * * * 6* * * * * 7* * * * * 8* * * * * 9* * * * * 1. The Schedule numbered as Schedule I thereof by Act 66 of 1976, s. 27 ( b) (w.e.f. 1 -4-1977). 2. Subs. by Act 18 of 1992, s. 100, for (See section 3) (w.e.f. 1 -4-1993). 3. Subs. by Act 32 of 1985, s. 40, for Part I (w.e.f. 1 -4-1986). 4. Added by Act 26 of 1988, s. 66 (w.e.f. 1 -4-1988). 5. Part II omitted by Act 18 of 1992, s. 100 (w.e.f. 1 -4-1993). 6. Rule 1 omitted by Act 18 of 1992, s. 100 (w.e.f. 1 -4-1993). 7. Rule 2 omitted by Act 19 of 1970, s. 26 (w.r.e.f. 1 -4-1969). 8. Rules 3, 4, 5 omitted by Act 18 of 1992, s. 100 (w.e.f. 1 -4-1993). 9. Schedule II omitted by Act 18 of 1992, s. 100 (w.e.f. 1 -4-1993). Earlier it was inserted by Act 66 of 1976, s. 27 (w.e.f. 1-4-1977). 102 1[SCHEDULE III [See section 7(1)] RULES FOR DETERMINING THE VALUE OF ASSETS PART A GENERAL 1. Value of assets how to be determined. The value of any asset, other than cash, for the purposes of this Act, shall be determined in the manner laid down in these rules. 2. Definitions. In this Schedule, unless the context otherwise requires, (1) accounting year in relation to a company means a period in respect of which any profit and loss account of the company laid before it in the annual general meeting is made up; (2) debenture in cludes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not; (3) equity share means any share in the share capital of a company other than a preference share; (4) gold means gol d, including its alloy, whether virgin, melted, remelted, wrought or unwrought, in any shape or form of a purity of not less than nine carats and includes any gold coin (whether legal tender or not), any gold ornament and other article of gold; (5) gold o rnament means any article in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship made of, or manufactured from, gold, whether or not set with stones or gems, real or artificial, or with pearls, real, cultured or imitation, or with all or any of them and includes parts, pendants or broken pieces of gold ornaments ; (6) investment company means a company whose gross total income consists mainly of income which is chargeable to incom e-tax under the heads Income from house property, Capital gains and Income from other sources. Explanation .In this clause, the expression gross total income shall have the meaning assigned to it in se ction 80B of the Income -tax Act ; (7) jewellery includes (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi - precious stones, and whether or not worked or sewn into any wearing apparel; (b) precious or semi -precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any apparel; (8) preference share has the meaning assigned to it in section 85 of the Companies Act, 1956 (1 of 1956); (9) quoted share or quoted debenture, in relation to an equity share or a preference share or, as the case may be, a debenture, means a share or debenture quoted on any recognised stock exchange with regularity from time to time, where the quot ations of such shares or debentures are based on current transactions made in the ordinary course of business. Explanation. Where any question arises whether a share or debenture is a quoted share or a quoted debenture within the meaning of this clause , a certificate to that effect furnished by the concerned stock exchange in the prescribed form shall be accepted as conclusive ; 1. Ins. by Act 3 of 1989, s. 78 (w.e.f. 1 -4-1989). 103 (10) recognised stock exchange has the meaning assigned to it in clause ( f) of section 2 of the Securities Contracts (Reg ulation) Act, 1956 (42 of 1956) ; (11) unquoted share or unquoted debenture , in relation to an equity share or a preference share or, as the case may be, a debenture, means a share or debenture which is not a quoted share or a quoted debenture. PART B IMMOV ABLE PROPERTY 3. Valuation of immovable property. Subject to the provisions of rules 4, 5, 6, 7 and 8, for the purposes of sub -section ( 1) of section 7, the value of any immovable property, being a building or land appurtenant thereto, or part thereof, shall be the amount arrived at by multiplying the net maintainable rent by the figure 12.5 : Provided that in relation to any such property which is constructed on leasehold land, this rule shall have effect as if for the figure 12.5, (a) where the unexpi red period of the lease of such land is fifty years or more, the figure 10.0 had been substituted ; and (b) where the unexpired period of the lease of such land is less than fifty years, the figure 8.0 had been substituted: Provided further that where such property is acquired or construction of which is completed after the 31st day of March, 1974, if the value so arrived at is lower than the cost of acquisition or the cost of construction, as increased, in either case, by the cost of any improvement to the property, the cost of acquisition or, as the case may be, the cost of construction, as so increased, shall be taken to be the value of the property under this r ule: Provided also that the provisions of the second proviso shall not apply for determining th e value of one house belonging to the assessee, where such house is acquired or the construction whereof is completed after the 31st day of March, 1974, and the house is exclusively used by the assessee for his own residential purposes throughout the perio d of twelve months immediately preceding the valuation date and the cost of acquisition or, as the case may be, the cost of construction, as increased, in either case, by the cost of any improvement to the house, does not exceed, (a) if the house is situa te at Bombay, Calcutta, Delhi or Madras, fifty lakh rupees; (b) if the house is situate at any other place, twenty -five lakh rupees: Provided also that where more than one house belonging to the assessee is exclusively used by him for residential purposes, the provisions of the third proviso shall apply only in respect of one of such houses which the assessee may, at his option, specify in this behalf. 4. Net maintainable rent how to be computed. For the purposes of rule 3, "net maintainable rent" in relati on to an immovable property referred to in that rule, shall be the amount of gross maintainable rent as reduced by (i) the amount of taxes levied by any local authority in respect of the property ; and (ii) a sum equal to fifteen per cent of the gross maintainable rent. 5. Gross maintainable rent how to be computed. For the purposes of rule 4, gross maintainable rent, in relation to any immovable property referred to in rule 3, means (i) where the property is let, the amount received or receivable by the owner as annual rent or the annual value assessed by the local authority in whose area the property is situated for the purposes of levy of property tax or any other tax on the basis of such assessment, whic hever is higher; 104 (ii) where the property is not let, the amount of annual rent assessed by the local authority in whose area the property is situated for the purpose of levy of property tax or any other tax on the basis of such assessment, or, if there is no such assessment or the property is situated outside the area of any local authority the amount which the owner can reasonably be expected to receive as annual rent had such property been let. Explanation. In this rule, (1) annual rent means, (a) where the property is let throughout the year ending on the valuation date (hereinafter referred to as previous year ), the actual rent received or receivable by the owner in respect of such year; (b) where the property is let for only a part of the previ ous year, the amount which bears the same proportion to the amount of actual rent received or receivable by the owner for the period for which the property is let as the period of twelve months bears to the number of months (including part of a month) duri ng which the property is let during the previous year : Provided that in the following cases, such actual rent under sub -clauses ( a) and ( b) shall be increased in the manner specified below: (i) where the property is in the occupation of a tenant and tax es levied by any local authority in respect of the property are borne wholly or partly by the tenant, by the amount of the taxes so borne by the tenant ; (ii) where the property is in the occupation of a tenant and expenditure on repairs in respect of the p roperty is borne by the tenant, by one -ninth of the actual rent; (iii) where the owner has accepted any amount as deposit (not being advance payment towards rent for a period of three months or less), by the amount calculated at the rate of 15 per cent per annum on the amount of deposit outstanding from month to month, for the number of months (excluding part of a month) during which such deposit was held by the owner in the previous year, and if the owner is liable to pay interest on such deposit, the increase to be made under this clause shall be limited to the sum by which the amount calculated as aforesaid exceeds the interest actually paid; (iv) where the owner has received any amount by way of premium or otherwise as consideration for leasing of the property or any modification of the terms of the lease, by the amount obtained by dividing the premium or other amount by the number of years of the period of the lease; (v) where the owner derives any benefit or perquisite, whether convertible into money or not, as consideration for leasing of the property or any modification of the terms of the lease by the value of such benefit or perquisite; (2) rent received or receivable shall include all payments for the use of the property, by whatever name calle d, the value of all benefits or perquisites whether convertible into money or not, obtained from a tenant or occupier of the property and any sum paid by a tenant or occupier of the property in respect of any obligation which, but for such payment, would h ave been payable by the owner. 6. Adjustments to value arrived at under rule 3, for unbuilt area of plot of land. Where the unbuilt area of the plot of land on which the property referred to in rule 3 is constructed exceeds the specified area, the value arrived at in accordance with the provisions of rule 3 shall be increased by an amount calculated in the following manner, namely: (a) where the difference between the unbuilt area and the specified area exceeds five per cent . but does not exceed ten per cent. of the aggregate area, by an amount equal to twenty per cent of such value; 105 (b) where the difference between the unbuilt area and the specified area exceeds ten per cent but does not exceed fifteen per cent of the aggre -gate area, by an amount equal to thirty per cent of such value; (c) where the difference between the unbuilt area and the specified area exceeds fifteen per cent but does not exceed twenty per cent of the aggregate area, by an amount equal to forty per cent of such value. Explanation. For the purposes of this rule and rule 6, (a) aggregate area , in relation to the plot of land on which the property is constructed, means the aggregate of the area on which the property is constructed and the unbuilt area; (b) specified area , in relat ion to the plot of land on which the property is constructed, means (i) where the property is situate at Bombay, Calcutta, Delhi or Madras, sixty per cent of the aggregate area; (ii) where the property is situate at Agra, Ahmedabad, Allahabad, Amritsar, Bangalore, Bhopal, Cochin, Hyderabad, Indore, Jabalpur, Jamshedpur, Kanpur, Lucknow, Ludhiana, Madurai, Nagpur, Patna, Pune, Salem, Sholapur, Srinagar, Surat, Tiruchirapalli, Trivandrum, Vadodara (Baroda) or Varanasi (Benaras), sixty -five per cent . of the aggregate area; and (iii) where the property is situate at any other place, seventy per cent . of the aggregate area : Provided that where, under any law for the time being in force, the minimum area of the plot of land required to be kept as open space for the enjoyment of the property exceeds the specified area, such minimum area shall be deemed to be the specified area; (c) unbuilt area , in relation to the aggregate area of the plot of land on which the property is constructed, means that part of s uch aggregate area on which no building has been erected. 7. Adjustment for unearned increase in the value of the land. Where the property is constructed on land obtained on lease from the Government, a local authority or any authority referred to in claus e (20A) of section 10 of the Income -tax Act, and the Government or any such authority is, under the terms of the lease, entitled to claim and recover a specified part of the unearned increase in the value of the land at the time of the transfer of the property, the value of such property as determined under rule 3 shall be reduced by the amount so liable to be claimed and recovered or

the property, the value of such property as determined under rule 3 shall be reduced by the amount so liable to be claimed and recovered or by an amount equal to fifty per cent . of the value of the property as so determined, whichever is less, as if the proper ty had been transferred on the valuation date. Explanation. For the purpose of this rule, "unearned increase" means the difference between the value of such land on the valuation date as determined by the Government or such authority for the purpose of cal culating such increase and the amount of the premium paid or payable to the Government or such authority for the lease of the land. 8. Rule 3 not to apply in certain cases. Nothing contained in rule 3 shall apply, (a) where, having regard to the facts and circumstances of the case, the Assessing Officer, with the previous approval of the Deputy Commissioner, is of opinion that it is not practicable to apply the provisions of the said rule to such a case; or (b) where the difference between the unbuilt area and the specified area exceeds twenty per cent of the aggregate area; or (c) where the property is constructed on leasehold land and the lease expires within a period not exceeding fifteen years from the relevant valuation date and the deed of lease does not give an option to the lessee for the renewal of the lease, and in any case referred to in clause ( a) or clause ( b) or clause ( c), the value of the property shall be determined in the manner laid down in rule 20. 106 1* * * * * PART D ASSETS OF BUSINESS 14. Global valuation of assets of business. (1) Where the assessee is carrying on a business for which accounts are maintained by him regularly, the net value of the assets of the business as a whole, having regard to the balance -sheet of such bus iness on the valuation date after adjustments specified in sub-rule (2) shall be taken as the value of such assets for the purposes of this Act. (2) For the purposes of sub -rule (1) (a) the value of any asset as disclosed in the balance -sheet shall be taken to be, (i) in the case of an asset on which depreciation is admissible, its written -down value; (ii) in the case of an asset on which no depreciation is admissible, its book value; (iii) in the case of closing stock its value adopted for the purposes of assessment under the Income -tax Act for the previous year relevant to the corresponding assessment year; (b) where the value of any of the assets referred to in clause ( a), deter -mined i n accordance with the provisions of this Schedule as applicable to that particular asset or if there are no such provisions, determined in accordance with rule 20, exceeds the value arrived at in accordance with clause ( a) by more than 20 per cent, then th e higher value shall be taken to be the value of that asset; (c) the value of an asset not disclosed in the balance -sheet, shall be taken to be the value determined in accordance with the provisions of this Schedule as applicable to that asset; (d) the value of the following assets which are disclosed in the balance sheet shall not be taken into account, namely: (i) any amount paid as advance tax under the Income -tax Act; (ii) the debt due to the assessee according to the balance -sheet or part thereof which has been allowed as a deduction under clause ( vii) of sub -section ( 1) of section 36 of the Income -tax Act, for the purposes of assessment for the previous year relevant to the corresponding assessment year under that Act; (iii) the value of any ass et in respect of which wealth -tax is not payable under this Act; (iv) any amount shown in the balance -sheet including the debit balance in the profit and loss account or profit and loss appropriation account which does not represent the value of any asset; (v) any asset shown in the balance -sheet not really pertaining to the business; (e) the following amounts shown as liabilities in the balance -sheet shall not be taken into account, namely: (i) capital employed in the business other than that attributab le to borrowed money; (ii) reserves by whatever name called; (iii) any provision made for meeting any future or contingent liability; (iv) any liability shown in the balance -sheet not really pertaining to the business; 1. Part C omitted by Act 18 of 1992, s. 100 (w.e.f. 1 -4-1993). 107 (v) any debt owed by the assessee to the extent to which it has been specifically utilised for acquiring an asset in respect of which wealth -tax is not payable under this Act: Provided that where it is not possible to calculate the amount of debt so utilised, it shall be taken as the amount which bears the same proportion to the total of the debts owed by the assessee as the value of that asset bears to the total value of the assets of the business. Explanation. Provision for any purpose other than taxation shall be treated as a reserve. PART E INTEREST IN FIRM OR ASSOCIATION OF PERSONS 15. Valuation of interest in firm or association of persons. The value of the interest of a person in a firm of which he is a partner or in an association of persons of which he is a member shall be determined in the manner provided in rule 16. 16. Computation of net wealth of the firm or association and its allocation amongst the partners or members. The net wealth of the firm or association of persons on the valuation date shall first be determined as if it we re the assessee and, thereafter, (i) that portion of the net wealth of the firm or association as is equal to the amount of its capital shall be allocated among the partners or members in the proportion in which capital has been contributed by them; (ii) the residue of the net wealth of the firm or association shall be allocated amongst the partners or members in accordance with the agreement of partnership or association for the distribution of assets in the event of dissolution of the firm or associati on or, in the absence of such agreement, in the proportion in which the partners or members are entitled to share the profits, and the sum total of amounts so allocated to a partner or member under clause ( i) and clause ( ii) shall be treated as the value o f the interest of that partner or member in the firm or association: Provided that in determining the net wealth of the firm or association for the purposes of this rule, no account shall be taken of the exemptions in sub -sections ( 1) and ( 1A) of section 5 . Explanation. For the purposes of this rule, (a) where the net wealth of the firm or association computed in accordance with this rule includes the value of any assets located outside India, the value of the interest of any partner or member in the assets located in India shall be determined having regard to the proportion which the value of assets located in India diminished by the debts relating to those assets bears to the net wealth of the firm or association; (b) where the net wealth of the firm or association computed in accordance with this rule includes the value of any assets which are exempt from inclusion in the net wealth under sub -sections ( 1) and (1A) of section 5, the value of the interest of a partner or member shall be deemed to include t he value of his proportionate share in the said assets and, the provisions of sub -sections ( 1) and ( 1A) of section 5 shall apply to him accordingly; (c) where the net wealth of the firm or association computed in accordance with this rule includes the valu e of any assets referred to in sub -section ( 2) of section 5, the value of the interest of a partner or member shall be deemed to include the value of his proportionate share in the said assets, and the provisions of sub -section ( 2) of section 5 shall apply to him accordingly. 108 PART F LIFE INTEREST 17. Valuation of life interest. (1) For the purposes of sub -section (1) of section 7, the value of the life interest of an assessee shall be arrived at by multiplying the average annual income that accrued to the assessee from the life interest by the fraction 1 minus 1, where P represents the annual premium p + d for a whole life insurance without profits on the life of the life tenant for unit sum assured as specified in the Appendix to these rules, and d is equal to i i being the rate of interest. 1+i Explanation. In this rule, (a) life tenant means a person for the duration of whose life the life interest is to subsist; (b) average annual income means the average of the gross income derived by the assessee from the life interest during each year of the period ending on the valuation date, reduced by the average of the expenses incurred on the collection of suc h income in each of those years : Provided that the amount of the reduction for such expenses shall, in no case, exceed five per cent of the average of the annual gross income: Provided further that in case the income so derived is for a period exceeding three years, only that income derived during the three years ending on the valuation date shall be taken into account; (c) the rate of interest shall be 6 per cent . per annum. (2) Notwithstanding anything contained in sub -rule (1), (a) the Assessing Officer may, if he is of the opinion that in the case of the life tenant, a life insurance company would not take the risk of insuring his life at the normal premium rates in force but would demand a higher premium, vary the valuation suitably; (b) the value of the life interest so determined shall, in no case, exceed the value as on the valuation date as determined under this Schedule, of the corpus of the trust from which the life interest is derived. PART G JEWELLERY 1[18. Valuation of jewellery. (1) The value of the jewellery shall be estimated to be the price which it would fetch if sold in the open market on the valuation date (hereafter in this rule referred to as fair market value). (2) The return of net wealth furnished by the assessee shall be supported by, (i) a statem ent in the prescribed form, where the value of the jewellery on the valuation date does not exceed rupees five lakhs; (ii) a report of a registered valuer in the prescribed form, where the value of the jewellery on the valuation date exceeds rupees five la khs. (3) Notwithstanding anything mentioned in sub -rule (2), the Assessing Officer may, if he is of opinion, that the value of the jewellery declared in the return, (a) is less than its fair market value by such percentage or such amount as is prescribed under sub-clause ( i) of clause ( b) of sub -section ( 1) of section 16A; 1. Subs. by Act 12 of 1990, s. 58, for rule 18 (w.e.f. 1 -4-1990). 109 (b) is less than its fair market value as referred to in clause ( a) of sub -section ( 1) of section 16A, he may refer the valuation of such jewellery to a Valuation Officer under sub -section (1) of the said section and the value of such jewellery shall be the fair market value as estimated by the Valuation Officer.] 19. Adjustment in value of jewellery for subsequent assessment years. The value of any jewellery determined in accordance with 1[sub-rule (3) of ] rule 18 for any assessment year (hereinafter referred to as the first assessment year), shall be taken to be the value of such jewellery for the subsequent four assessment years, subject to the following ad justments, namely : (a) where the jewellery includes gold or silver or any alloy containing gold or silver, the value of such gold or silver or such alloy as on the valuation date relevant to the concerned subsequent assessment year shall be substituted for the value of such gold or silver or alloy on the valuation date relevant to the first assessment year; (b) where any jewellery or part of jewellery is sold or otherwise disposed of by the assessee, or any jewellery or part of jewellery is acquired by him, on or before the valuation date relevant to the concerned subsequent year, the value of the jewellery determined for the first assessment year shall be reduced or increased, as the case may be, and the value as so reduced or increased shall be the value of the jewellery for such subsequent assess ment year. PART H RESIDUARY 20. Valuation of assets in other cases. (1) The value of any asset, other than cash, being an asset which is not covered by rules 3 to 19, for the purposes of this Act, shall be estimated to be the price which, in the opinion of the Assessing Officer, it would fetch if sold in the open market on the valuation date. (2) Notwithstanding anything contained in sub -rule (1), where the valuation of any asset referred to in that sub -rule is referred by the Assessing Officer to the Valuation Officer under section 16A, the value of such asset shall be estimated to be the price which, in the opinion of the Valuation Officer, it would fetch if sold in the open market on the valuation date. (3) Where the value of any asset cannot be esti mated under this rule because it is not saleable in the open market, the value shall be determined in accordance with such guidelines or principles as may be specified by the Board from time to time by general or special order. 21. Restrictive covenants to be ignored in determining market value. For the removal of doubts, it is hereby declared that the price or other consideration for which any property may be acquired by or transferred to any person under the terms of a deed of trust or through or under an y restrictive covenant in any instrument of transfer shall be ignored for the purposes of determining under any provision of this Schedule, the price such property would fetch if sold in the open market on the valuation date. 1. Subs. by Act 12 of 1990, s. 58, for clause ( b) of (w.e.f. 1 -4-1990).

THE ADMINISTRATIVE TRIBUNALS ACT, 1985 ACT NO. 13 OF 1985 [27th February, 1985.] An Act to provide for the adjudication or trial by Administrative Tribunals of di sputes and complaints with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or of any State or of any local or other authority within the territory of India or under the control of the Government of India or of 1[any corporation or society owned or controlled by the Government in pursuance of article 323A of the Constitution] and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Thirty -sixth Year of the Republic of India as follow: CHAPTER I PRELIMINARY 1. Short title, extent and commencement .(1) This Act may be called the Admi nistrative Tribunals Act, 1985. (2) It extends, (a) in so far as it relates to the Central Administrative T ribunal, to the whole of India; 2* * * * *. (3) The provisions of this Act, in so far as they relate to the Central Administrative Tribunal, shall come into force on such date3 as the Central Government may, by notification, appoint. (4) The provisions of this Act, in so far as they relate to an Admin istrative Tribunal for a State, shall come into force in a State on such date as the Central Government may, by notification, appoint. 2. Act not to apply to certain persons .The provisions of this Act shall not apply to (a) any member of the naval, military or air forces or of any o ther armed forces of the Union; 4* * * * * (c) any officer or servant of the Supreme Court or of any High Court 5[or courts subordinate there to]; (d) any person appointed to the secretarial staff of either House of Parliament or to the secretarial staff of any State Legislature or a House thereof or, in the case of a Union territory having a Legislature, of that Legislature. 3. Definitions. In this Act, unless th e context otherwise requires, 6[(a) Administrative Member means a Member of a Tribunal who is not a Judicial Member within the meaning of clause ( i);] 7[(aa)] Administrative Tribunal , in relation to a State, means the Administrative Tribunal for the State or, as the case may be, the Joint Administrative Tribunal for that State and any other State or States; (b) application means an app lication made under section 19; 1. Subs. by Act 19 of 1986, s. 2, for any corporation owned or controlled by the Government (w.e.f. 22 -1-1986). 2. Clause ( b) omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31 -10- 2019) . 3. 1st July , 1985, vide notification No. G.S.R. 527(E), dated by 1st July, 1985, see Gazette of India , Extraordinary, Part II, sec. 3( i). 4. Clause ( b) omitted by Act 19 of 1986, s. 3 (w.e.f. 1-11-1985). 5. Ins. by Act 51 of 1987, s. 2 (w.e.f. 22-12-1987). 6. Ins. by Act 19 of 1986, s. 4 (w.e.f. 22 -1-1986). 7. Clause ( a) re-lettered as clause ( aa) thereof by s. 4, ibid. (w.e.f. 22 -1-1986). 4 (c) appointed day , in relation to a Tribunal, means the date with effect from which it is established, by notification, under section 4; (d) appropriate Government means, (i) in relation to the Central Administrative Tribunal or a Joint Administrative Tr ibunal, the Central Government; (ii) in relation to a State Administrative Tribunal, the State Government; (e) Bench means a Bench of a Tribunal; (f) Central Administrative Tribunal means the Administrative Tribunal established under sub-section ( 1) of section 4; (g) Chairman means the Chairman of a Tribunal; (h) Joint Administrative Tribunal mean s an Administrative Tribunal for two or more States established under sub -section ( 3) of section 4; 1[(i) Judicial Member means a Member of a Tribunal appointed as such under this Act, and includes 2[the Chairman] who possesses any of the qualifications specified in sub-section ( 3) of section 6; (ia) Member means a Member (whether Judicial or Administrative) of a Tribunal, and includes the Chairman 3***;] (j) notification means a notification pub lished in the Official Gazette; (k) post means a post within or outsid e India; (l) prescribed means prescribe d by rules made under this Act; (m) President means the President of India; 4* * * * * (o) rules means rules made under this Act; (p) service means s ervice within or outside India; (q) service matters , in relation to a person, means all matters relating to the conditions of his service in connection with the affairs of the Union or of any State or of any local or other authority withi n the territory of India or under the control of the Government of India, or, as the ca se may be, of any corporation 5[or society] owned or controlled by the Government, as respects (i) remuneration (including allowances), pension and other retirement ben efits; (ii) tenure including confirmation, seniority, promotion, reversion, premature retirement and superannuation; (iii) leave of any kind; (iv) disciplinary matters; or (v) any other matter whatsoever; (r) service rules as to redressal of grievances , in relation to any matter, means the rules, regulations, orders or other instruments or arrangements as in force for the time being with respect to redressal, otherwise than under this Act, of any grievances in relation to such matters; 1. Subs. by Act 19 of 1986, s. 4, for clause ( i) (w.e.f. 22 -1-1986). 2. Subs. by Act 1 of 2007, s. 2, for t he Chairman or a Vice -Chairman (w.e.f. 19 -2-2007). 3. The words and a Vice -Chairman omitted by s. 2, ibid. (w.e.f. 19 -2-2007). 4. Clause ( n) omitted by Act 19 of 1986, s. 4 (w.e.f. 22 -1-1986). 5. Ins. by s. 4, ibid. (w.e.f. 22 -1-1986). 5 1[(rr) society means a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any corresponding law for the t ime being in force in a State;] (s) Supreme Court means the Supreme Court of India; (t) Tribunal means the Central Administrative Tribunal or a State Administrative Tribunal or a Joint Administrative Tribunal; 2[(u) Vice -Chair man means a Member who has been authorised by the appropriate Government to perform administrative functions at each of the places where Benches of the Tribunal have been set up.] Explanation. In the case of a Tribunal having two or more Vice -Chairme n, references to the Vice -Chairman in this Act shall be construed as a reference to each of those Vice -Chairmen. CHAPTER II ESTABLISHMENT OF TRIBUNALS AND BENCHES THEREOF 4. Establishment of Administrative Tribunals .(1) The Central Government shall, by notification, establish an Administrative Tribunal, to be known as the Central Administrative Tribunal, to exercise the jurisdiction, powers and authority conferred on the Central Administrative Tribunal by or under this Act. (2) The Central Government may, on receipt of a request in this behalf from any State Government, establish, by notification, an Administrative Tribunal for the State to be known as the.......(name of the State) Administrative Tribunal to exercise the jurisdiction, powers and authority conferred on the Administrative Tribunal for the State by or under this Act. (3) Two or more States may, notwithstanding anything contained in sub -section (2) and notwithstanding that any or all of those States has or have Tribunals established under that sub-section, enter into an agreement that the same Administrative Tribunal shall be the Adminis trative Tribunal for each of the States participating in the agreement, and if the agreement is approved by the Central Government and published in the Gazette of India and the Official Gazette of each of those States, the Central Government may, by notifi cation, establish a Joint Administrative Tribunal to exercise the jurisdiction, powers and authority conferred on the Administrative Tribunals for those States by or und er this Act. (4) An agreement under sub -section ( 3) shall contain provisions as to the name of the Joint Administrative Tribunal, the manner in which the participating States may be associated in the selection of the 3[Chairman and other Members ] of the Joint Administrative Tribunal, the places at which t he Bench or Benches of the Tribunal shall sit, the apportionment among the participating States of the expenditure in connection with the Joint Administrative Tribunal and may also contain such other supplemental, incidental and consequential provisions no t inconsistent with this Act as may be deemed necessary or expedient for giving effect to the agreement. 4[(5) Notwithstanding anything contained in the foregoing provisions of this section or sub -section ( 1) of section 5, the Central Government may, (a) with the concurrence of any State Government, designate, by notification, all or any of the Members of the Bench or Benches of the State Administrative Tribunal established for that State under sub -section ( 2) as Members of the Bench or Benches of the Cen tral Administrative Tribunal in respect of that State and the same shall exercise the jurisdiction, powers and authority conferred on the Central Administrative Tribunal by or under this Act; (b) on receipt of a request in this behalf from any State Govern ment, designate, by notification, all or any of the Members of the Bench or Benches of the Central Administrative Tribunal functioning in that State as the Members of the Bench or Benches of the State Administrative 1. Ins. by Act 19 of 1986, s. 4 (w.e.f. 22 -1-1986). 2. Subs. by Act 1 of 2007, s. 2, for clause ( u) (w.e.f. 19 -2-2007). 3. Subs. by s. 3, ibid., for Chairman , Vice -Chairman and other Members (w.e.f. 19 -2-2007). 4. Ins. by Act 19 of 1986, s. 5 (w.e.f. 22 -1-1986). 6 Tribunal for that State and the same sha ll exercise the jurisdiction, powers and authority conferred on the Administrative Tribunal for that State by or under this Act, and upon such designation, the Bench or Benches of the State Administrative Tribunal or, as the case may be, the Bench or Benc hes of the Central Administrative Tribunal shall be deemed, in all respects, to be the Central Administrative Tribunal, or the State Administrative Tribunal for that State established under the provisions of article 323A of the Constitution and this Act. (6) Every notification under sub -section ( 5) shall also provide for the apportionment between the State concerned and the Central Government of the expenditure in connection with the Members common to the Central Administrative Tribunal and the State Admini strative Tribunal and such other incidental and consequential provisions not inconsistent with this Act as may be deemed necessary or expedient.] 5. Composition of Tribunals and Benches thereof .(1) Each Tribunal shall consist of 1[a Chairman and such number of Judicial and Administrative Members] as the appropriate Government may deem fit and, subject to the other provisions of this Act, the jurisdiction, powers and authority of the Tribunal may b e exercised by Benches thereof. 2[(2) Subject to the other provisions of this Act, a Bench shall consist of one Judicial Member and one Adm inistrative Member.] 3* * * * * (4) Notwithstanding anything contained in sub -section ( 1), 4*** the Chairman 5[(a) may, in addition to discharging the functions of the Judicial Member or the Administrative Member of the Bench to which he is appointed, discharge the functions of the Judicial Member or, as the case may be, the Administrativ e Member, of any other Bench;] (b) may transfer 6[a Member ] from one Bench to another Bench; 7[(c) may authorise 8[the Judicial Member] or the Administrative Member appointed to one Bench to discharge also the functions of 9[the Judicial Member or the Administrative Member , as the case may be] of another Bench; and] (d) may, for the purpose of securing that any case or cases which, having regard to the nature of the questions involved, requires or require, in his opinion or under the rules made by the Central Government in this behalf, to be d ecided by a Bench composed of more than 10[two members], issue such general or special orders, as he may deem fit. 11[Provided that every Bench constituted in pursuance of this clause shall include at least one Judicial Member and one Administrative Member. ] 12* * * * * (6) Notwithstanding anything contained in the foregoing provisions of this section, it shall be competent for the Chairman or any other Member authorised by the Chairman in this behalf to function as 13[a Bench] consisting of a single Member and exercise the jurisdiction, powers and authority of the 1. Subs. by Act 1 of 2007, s. 4, for a Chairman and such number of Vice -Chairman and Judicial and Administrative Members (w.e.f 19 -2-2007). 2. Subs. by Act 19 of 1986 , s. 6, for sub -section ( 2) (w.e.f. 1 -11-19

986 , s. 6, for sub -section ( 2) (w.e.f. 1 -11-1985). 3. Sub-section ( 3) omitted by s. 6, ibid. (w.e.f. 1 -11-1985). 4. The words, brackets and figure or sub-section ( 3) omitted by s. 6, ibid. (w.e.f.1 -11-1985). 5. Subs. by s. 6, ibid., for clause ( a) (w.e.f. 1 -11-1985). 6. Subs. by Act 1 of 2007, s. 4, for the Vice -Chairman or other Members (w.e.f. 19 -2-2007). 7. Subs. by Act 19 of 198 6, s. 6, for clause ( c) (w.e.f. 1 -11-1985). 8. Subs. by Act 1 of 2007, s. 4, for the Vice -Chairman or the Judicial Membe r (w.e.f. 19 -2-2007). 9. Subs. by s. 4, ibid., for the Vice -Chairman or , as the case may be, the Judicial Member or the Administrative Member (w.e.f. 19 -2-2007). 10. Subs. by Act 19 of 1986 , s. 6, for three Members (w.e.f. 1 -11-1985 ). 11. Ins. by s. 6, ibid. (w.e.f. 1-11-1985). 12. Sub -section ( 5) omitted by s. 6, ibid. (w.e.f. 1 -11-1985). 13. Subs. by s. 6, ibid., for an additional Bench (w.e.f. 1 -11-1985). 7 Tribunal in respect of such classes of cases or such matters pertaining to such classes of cases as the Chairman may by ge neral or special order specify: Provided that if at any stage of the hearing of any such case or matter it appears to the Chairman or such Member that the case or matter is of such a nature that it ought to be heard by a Bench consisting of 1[two members], the case or matter may be transferred by the Chairman or, as the ca se may be, referred to him for transfer to, such Benc h as the Chairman may deem fit. 2[(7) Subject to the other provisions of this Act, the Benches of the Central Administrative Tribunal shall ordinarily sit at New Delhi (which shall be known as the principal Bench), Allahabad, Calcutta, Madras, New Bombay and at such other places as the Central Government may, by notification, specify. (8) Subject to the other provisions of this Act, the places at which the principal Bench and other Benches of a Stat e Administrative Tribunal shall ordinarily sit shall be such as the State Government may, by notification, specify. ] 3[6. Qualification s for appointment as Chairman, Vice -Chairman and other members .(1) A person shall not be qualified for appointment as the Chairman unless he is, or has been, a Judge of a High Court: Provided that a person appointed as Vice -Chairman before the commencement of this Act shall be qualified for appointment as Chairman if such person has held the office of the V ice-Chairman at least for a period of two years. (2) A person shall not be qualified for appointment, (a) as an Administrative Member, unless he has held for at least two years the post of Secretary to the Government of India or any other post under the Central or State Government and carrying the scale of pay which is not less than that of a Secretary to the Government of India for at least two years or held a post of Additional Secretary to the Government of India for at least five years or any other post under the Central or State Government carrying the scale of pay which is not less than that of Additional Secretary to the Government of India at least for a period of five years: Provided that the officers belonging to All -India services who were or ar e on Central deputation to a lower post shall be deemed to have held the post of Secretary or Additional Secretary, as the case may be, from the date such officers were granted proforma promotion or actual promotion whichever is earlier to the level of Sec retary or Additional Secretary, as the case may be, and the period spent on Central deputation after such date shall count for qualifying service for the purposes of this clause; (b) as a Judicial Member, unless he is or qualified to be a Judge of a High C ourt or he has for at least two years held the post of a Secretary to the Government of India in the Department of Legal Affairs or the Legislative Department including Member -Secretary, Law Commission of India or held a post of Additional Secretary to the Government of India in the Department of Legal Affairs and Legislative Department at least for a period of five years. (3) The Chairman and every other Member of the Central Administrative Tribunal shall be appointed after consultation with the Chief Just ice of India by the President. (4) Subject to the provision of sub -section ( 3), the Chairman and every other Member of an Administrative Tribunal for a State shall be appointed by the President after consultation with the Governor of the concerned State. (5) The Chairman and every other Member of a Joint Administrative Tribunal shall, subject to the provisions of sub -section ( 3) and subject to the terms of the agreement between the participating State Governments published under sub -section ( 3) of section 4 of the principal Act, be appointed by the President after consultation with the Governors of the concerned States. 1. Subs. by Act 19 of 1986, s. 6, for three Members (w.e.f. 1 -11-1985). 2. Subs. by s. 6, ibid., for sub -section ( 7) (w.e.f. 1 -11-1985). 3. Subs. by Act 1 of 2007, s. 5, for section 6 (w.e.f. 19 -2-2007). 8 Explanation. In computing for the purpose of this section, the period during which a person has held any post under the Central or State Gov ernment, there shall be included the period during which he has held any other post under the Central or State Government (including an office under this Act) carrying the same scale of pay as that of first mentioned post on a higher scale of pay.] 7. Vic e-Chairman to act as Chairman or to discharge his functions in certain circumstances. (1) In the event of the occurrance of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, 1[such one of the Member s] as the appropriate Government may, by notification, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office. (2) When t he Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice -Chairman or, as the case may be, such one of the Vice -Chairmen as the appropriate Government may, by notification, authorise in this behalf, shall disch arge the functions of the Chairman until the date on which the Chairman resumes his duties. 2[8. Term of office. (1) The Chairman shall hold office as such for a term of five years from the date on which he enters upon his office: Provided that no Chairman shall hold office as such after he has attained the age of sixty -eight years. (2) A Member shall hold office as such for a term of five years from the dale on which he enters upon his office extendable by one more term of five years: Provided that no Memb er shall hold office as such after he has attained the age of sixty -five years. (3) The conditions of service of Chairman and Members shall be the same as applicable to Judges of the High Court.] 9. Resignation and removal. (1) The Chairman, 3*** or other Member may, by notice in writing under his hand addressed to th e President, resign his office: Provided that the Chairman, 3*** or other Member shall, unless he is permitted by the President to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of off ice, whichever is the earliest. (2) The Chairman, 3*** or any other Member shall not be removed from his office except by an order made by the President on the ground of proved misbehaviour or incapacity aft er an inquiry made by a Judge of the Supreme Court in which such Chairman, 3*** or other Member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges . (3) The Central Government may, by r ules, regulate the procedure for the investigation of misbehaviour or incapacity of the Chairman, 3*** or other Member referred to in sub -section ( 2). 10. Salaries and allowances and other terms and conditions of service of Chairman, 4*** and other Members. The salaries and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Chairman, 4*** and other Members shall be such as may be prescribed by the Central Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairman, 4*** or other Member shall be varied to his disadvantage after his appointment. 5[Provided further that where a serving Government o fficer is appointed as a Member, he shall be deemed to have retired from the service to which he belonged on the date on which he assumed the 1. Subs. by Act 1 of 2007, s. 6, for Vice -Chairman or, as the case may be, such one of the Vice -Chairman (w.e.f. 19 -2-2007). 2. Subs. by s. 7, ibid., for section 8 (w.e.f. 19 -2-2007). 3. The word Vice -Chairman omitted by s. 8, ibid. (w.e.f. 19 -2-2007). 4. The word Vice -Chairman omitted by s. 9, ibid. (w.e.f. 19 -2-2007). 5. Ins. by s. 9, ibid. (w.e.f. 19 -2-2007). 9 charge of the Member but his subsequent service as Member shall, at his option, be reckoned as a post-retirement re-employment counting for pension and other retirement benefits in the service to which he belonged.] 1[10A. Saving terms and conditions of service of Vice -Chairman .The Chairman, Vice -Chairman and Member of a Tribunal appoin ted before the commencement of the Administrative Tribunals (Amendment) Act, 2006 (1 of 2007) shall continue to be governed by the provisions of the Act, and the rules made thereunder as if the Administrative Tribunals (Amendment) Act, 2006 had not come into force: Provided that, however, such Chairman and the Members appointed before the coming into force of Administrative Tribunals (Amendment) Act, 2006 (1 of 2007) , may on completion of their term or attainment of the age of sixty -five or sixty -two year s, as the case may be, whichever is earlier may, if eligible in terms of section 8 as amended by the Administrative Tribunals (Amendment) Act, 2006 be considered for a fresh appointment in accordance with the selection procedure laid down for such appointm ents subject to the condition that the total term in office of the Chairman shall not exceed five years and that of the Members, ten years.] 2[10B. Qualifications, terms and conditions of service of Chairman and Member. Notwithstanding anything contained i n this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairman and other Members of the Tribunal appointed after the commencement of 3[the Tribunal s Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act ]: Provided that the Chairman and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] 11. Provision as to the holding of offices by Chairman, etc., on ceasing to be such Chairman, etc. On ceasing to hold office, (a) the Chairman of the Central Administrative Tribunal shall be ineligible for further employment either under the Government of India or under the Governme nt of a State; (b) the Chairman of a State Administrative Tribunal or a Joint Administrative Trib unal shall, subject to the other provisions of this Act, be eligible for appointment as the Chairman or 4*** any other Member of the Central Administrative Tribunal or as the Chairman of any other State Administrative Tribunal or Joint Administrative Tribu nal, but not for any other employment either under the Government of India or under the Government of a State; 5* * * * * (e) a Member (other than the Chairman 6***) of any Tribunal shall, subject to the other provisions of this Act, be eligible for appointment as the Chairman 6*** of such Tribunal or as the Chairman, Vice - Chairman or other Member of any other Tribunal, but not for any other employment either under th e Government of India or u nder the Government of a State; (f) the Chairman, 7*** or other Member shall not appear, act or plead before any Tribunal of w hich he was the Chairman, 7*** or other Member. Explanation. For the purposes of this section, employment under the Government of India or under the Government of a State includes employment under any local or other authority within the territory of India or under the control of the Government of India or under any corporation 8[or society] owned or controlled by the Government. 9[12. Financial and administrative powers of the Chairman .(1) The Chairman shall exercise such financial and administrative powers over the Benches as may be vested in him under the rules made by the appropriate Government. 1. Ins. by Act 1 of 2007, s. 10 (w.e.f. 19 -2-2007). 2. Ins. by Act 7 of 2017, s.

. 19 -2-2007). 2. Ins. by Act 7 of 2017, s. 176 (w.e.f. 26 -5-2017). 3. Subs. by Act 33 of 2021, s. 15, for Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act (w.e.f. 4 -4-2021). 4. The word s Vice -Chairman or omitted by Act 1 of 2007, s. 11 (w.e.f. 19 -2-2007 ). 5. Clauses ( c) and ( d) omitted by s. 11, ibid. (w.e.f. 19 -2-2007). 6. The words or Vice -Chairman omitted by s. 11, ibid. (w.e.f. 19 -2-2007). 7. The word Vice -Chairman omitted by s. 11 , ibid. (w.e.f. 19 -2-2007). 8. Ins. by 19 of 1986, s. 8 (w.e.f. 22 -1-1986). 9. Subs. by Act 1 of 2007, s. 12, for section 12 (w.e.f. 19 -2-2007). 10 (2) The appropriate Government may designate one or more Members to be the Vice -Chairman or, as the case may be, Vice -Chairman thereof and the Members so designated shall exercise such of the powers and perform such of the functions of the Chairman as may be delegated to him by the Chairman by a general or special order in writing. ] 13. Staf f of the Tribunal. (1) The appropriate Government shall determine the nature and categories of the officers and other employees required to assist a Tribunal in the discharge of its functions and provide the Tribunal with such officers and other employees as it may think fit. 1[(1A) The officers and other employees of a Tribunal shall discharge their functions under the general sup erintendence of the Chairman.] (2) The salaries and allowances and conditions of service of the officers and other employees of a Tribunal shall be such as may be specified by rules made by the appropriate Government. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS 14. Jurisdiction, powers and authority of the Central Administrative Tribunal .(1) Save as otherwise expressly provided in thi s Act, the Central Administrative Tribunal shall exercise, on and from the appointed day, all the jurisdiction, powers and authority exercisable immediately before that day by all courts (except the Sup reme Court 2***) in relation to (a) recruitment, and matters concerning recruitment, to any All -India Service or to any civil service of the Union or a civil post under the Union or to a post connected with defence or in the defence services, being, in either case, a post filled by a ci vilian; (b) all service matters concerning (i) a memb er of any All -India Service; or (ii) a person [not being a member of an All -India Service or a person referred to in clause ( c)] appointed to any civil service of the Union or any civil post under the Union; or (iii) a civilian [not being a member of an All -India Service or a person referred to in clause ( c)] appointed to any defence services or a post connected with defence, and pertaining to the service of such member, person or civilian, in connection with the affairs of the Union or of any State or of any local or other authority within the territory of India or under the control of the Government of India or of any corpora tion 3[or society] owned o r controlled by the Government; (c) all service matters pertaining to service in connection with the affairs of the Union concerning a person appointed to any service or post referred to in sub -clause ( ii) or sub -clause ( iii) of c lause ( b), being a person whose services have been placed by a State Government or any local or other authority or any corporation 3[or society] or other body, at the disposal of the Central Government for such appointment. 4[Explanation .For the removal of doubts, it is hereby declared that references to Union in this sub-section shall be construed as including referen ces also to a Union territory.] (2) The Central Government may, by notification, apply with effect from such date as may be specified in the notification the provisions of sub -section ( 3) to local or other authorities within the territory of India or under the control of the Government of India and to corporations 3[or societies] owned or controlled by Government, not being a local or ot her authority or corporation 3[or society] controlled or owned by a State Government: Provided that if the Central Government considers it expedient so to do for the purpose of facilitating transition to the scheme as envisaged by this Act, different dates may be so specified under this 1. Ins. by Act 19 of 1986 , s. 10 (w.e.f. 22 -1-1986). 2. The words and figures under article 136 of the Constitution omitted by s. 11, ibid. (w.e.f. 22 -1-1986). 3. Ins. by s. 11, ibid. (w.e.f. 22 -1-1986). 4. Ins. by s. 11 , ibid. (w.e.f. 1-11-1985). 11 sub-section in respect of different classes of, or different categories under any class of, local or other authorities or corporations 1[or societies]. (3) Save as otherwise expressly provided in this Act, t he Central Administrative Tribunal shall also exercise, on and from the date with effect from which the provisions of this sub -section apply to any local or other authority or corporation 1[or society], all the jurisdiction, powers and authority exercisabl e immediately before that date by all courts (except the Sup reme Court 2***) in relation to (a) recruitment, and matters concerning recruitment, to any service or post in connection with the affairs of such local or other authority or corporation 1[or society]; and (b) all service matters concerning a person [other than a person referred to in clause ( a) or clause ( b) of sub -section ( 1)] appointed to any service or post in connection with the affairs of such local or other authority or c orporation 1[or society] and pertaining to the service of such person in connection with such affairs. 15. Jurisdiction, powers and authority of State Administrative Tribunals .(1) Save as otherwise expressly provided in this Act, the Administrative Tribunal for a State shall exercise, on and from the appointed day, all the jurisdiction, powers and authority exercisable immediately before that day by all courts (except the Supr eme Court 3***) in relation to (a) recruitment, and matters concerning rec ruitment, to any civil service of the State or to any civil post under the State; (b) all servi ce matters concerning a person not being a person referred to in clause ( c) of this sub-section or a member, person or civilian referred to in claus e (b) of sub -section ( 1) of section 1 4 appointed to any civil service of the State or any civil post under the State and pertaining to the service of such person in connection with the affairs of the State or of any local or other authority under the contr ol of the State Government or of any corporation 4[or society] owned or controlled by the S tate Government; (c) all service matters pertaining to service in connection with the affairs of the State concerning a person appointed to any service or post referred to in clause ( b), being a person whose service have been placed by any such local or other authority or corporation 4[or society] or other body as is controlled or owned by the State Government, at the disposal of the State G overnment for such appointment. (2) The State Government may, by notification, apply with effect from such date as may be specified in the notification the provisions of sub -section ( 3) to local or other authorities and corporations 4[or societies] controlled or owned by the State Government: Provided that if the State Government considers it expedient so to do for the purpose of facilitating transition to the scheme as envisaged by this Act, different dates may be so specified under this sub-section in respect of different classes of, or different categories under any class of, local or other authorities o r corporations 4[or societies]. (3) Save as otherwise expressly provided in this Act, the Administrative Tribunal for a State shall also exercise, o n and from the date with effect from which the provisions of this sub -section apply to any local or other authority or corporation 4[or society], all the jurisdiction, powers and authority exercisable immediately before that date by all courts (except the Supreme Court 3***) in relation to (a) recruitment, and matters concerning recruitment, to any service or post in connection with the affairs of such local or other authority or corporation 4[or society]; and (b) all serv ice matters concerning a person [other than a person referred to in clause ( b) of sub-section ( 1) of this section or a member, person or civilian referred to in clause ( b) of sub-section ( 1) of section 14 ] appointed to any service or post in conne ction with the affairs of such local or other authority or corporation 4[or society] and pertaining to the service of such person i n connection with such affairs. 1. Ins. by Act 19 of 1986, s. 11 (w.e.f. 22 -1-1986). 2. The words and figures under article 136 of the Constitution omitted by s. 11, ibid. (w.e.f. 22 -1-1986). 3. The words and figures under article 136 of the Constitution omitted by s. 12, ibid. (w.e.f. 22 -1-1986). 4. Ins. by s. 12 , ibid. (w.e.f. 22 -1-1986). 12 (4) For the removal of doubts, it is hereby declared that the jurisdiction, powers and author ity of the Administrative Tribunal for a State shall not extend to, or be exercisable in relation to, any matter in relation to which the jurisdiction, powers and authority of the Central Administrative Tribunal extends or is exercisable. 16. Jurisdiction, powers and authority of a Joint Administrative Tribunal .A Joint Administrative Tribunal for two or more States shall exercise all the jurisdiction, powers and authority exercisable by the Administrative Tribunals for such States. 17. Power to punish for contempt. A Tribunal shall have, and exercise, the same jurisdiction, powers and authority in respect of contempt of itself as a High Court has and may exercise and, for this purpose, the provisions of the Contempt o f Courts Act, 1971 (70 of 1971 ), shall h ave effect subj ect to the modifications that (a) the reference s therein to a High Court shall be construed as including a reference to such Tribunal; (b) the references to the Advocate -General in section 15 of th e said Act shall be construed, (i) in rel ation to the Central Administrative Tribunal, as a reference to the Att orney -General or the Solicitor -General or the Ad ditional Solicitor -General; and (ii) in relation to an Administrative Tribunal for a State or a Joint Administrative Tribunal for two or more States, as a reference to the Advocate -General of the State or any of the States for which such Tribunal has been established. 18. Distribution of business amongst the Benches .(1) Where 1[any Benches of a Tribunal are constituted], the appropriate Government may, from time to time, by notification, make provisions as to the distribution of the business of the Tribunal amongst the 2*** Benches and specify the matters which may be dealt with by each Bench. (2) If any question arises as to whether any matter falls within the purview of the business allocated to a Bench of a Tribunal, the decision of the Chairman thereon shall be final. Explanation. For the removal of doubts, it is hereby decl ared that the expression matters includes applications under section 19. CHAPTER IV PROCEDURE 19. Applications to tribunals. (1) Subject to the other provisions of this Act, a person aggrieved by any order pertaining to any matter within the jurisdiction of a Tribunal may make an application to the Tribunal for the redressal of his grievance. Explanation. For the purposes of this sub -section, order means an order made (a) by the Government or a local or other authority within the territory of India or under the contr ol of the Government of India or by any corporation 3[or society] owned or controlled by the Government; or (b) by an officer, committee or other body or agency of the Government or a local or other authority or corporation 3[or society] referred to in clause ( a). (2) Every application under sub -section ( 1) shall be in such form and be accompanied by such documents or other evidence and by such fee (if any, not exceeding one hundred rupees) 4[in respect of the filing of such application an d by such other fees for the service or execution of processes, as may be prescribe d by the Central Governmen t]. 5[(3) On receipt of an application under sub -section ( 1), the Tribunal shall, if satisfied after such inquiry as it may deem necessary, that t he application is a fit case for adjudication or trial by it, admit 1. Subs. by Act 19 of 1986, s. 13, for any additional Bench or Benches of a Tribunal is or are constit uted (w.e.f. 22 -1-1986). 2. The words principal Bench and the additional Bench or additional omitted by s. 13, ibid. (w.e.f. 22 -1-1986). 3. Ins. by s. 14 , ibid. (w.e.f. 22 -1-1986). 4. Subs. by s. 14, ibid., for as may be prescribed by the Central Government (w.e.f. 22 -1-1986). 5. Subs. by s. 14, ibid., for sub -section ( 3) (w.e.f. 2 2-1-1986). 13 such application; but where the Tribunal is not so satisfied, it may summarily reject the applicatio n after recording its reasons.] (4) Where an application has been admitted by a Tribunal under sub -section ( 3), every proceeding under the relevant service rules as to redressal of grievances in relation to

unal under sub -section ( 3), every proceeding under the relevant service rules as to redressal of grievances in relation to the subject -matter of such application pending immediately before such admission shall abate and save as otherwise directed by the Tribun al, no appeal or representation in relation to such matter shall thereafter be entertained under such rules. 20. Applications not to be admitted unless other remedies exhausted. (1) A Tribunal shall not ordinarily admit an application unless it is satisfied that the applicant had availed of all the remedies available to him under the relevant service rules as to redressal of grievances. (2) For the purposes of sub -section ( 1), a person shall be deemed to have availed of all the remedies available to him under the relevant service rules a s to redressal of grievances, (a) if a final order has been made by the Government or other authority or officer or other person competent to pass such order under such rules, rejecting any appeal preferred or repres entation made by such person in co nnection with the grievance; or (b) where no final order has been made by the Government or other authority or officer or other person competent to pass such order with regard to the appeal preferred or representation made by such person, if a period of six months from the date on which such appeal was preferred or repre sentation was made has expired. (3) For the purposes of sub -sections ( 1) and ( 2), any remedy available to an applicant by way of submission of a memorial to the President or to the Governor of a State or to any other functionary shall not be deemed to be of one of the remedies which are available unless the applicant had elected to submit such memorial. 21. Limitation. (1) A Tribunal shall not admit an appli cation, (a) in a case where a final order such as is mentioned in clause ( a) of sub -section ( 2) of section 20 has been made in connection with the grievance unless the application is made, within one year from the date on which such final order has been made; (b) in a case where an appeal or representation such as is mentioned in clause ( b) of sub-section ( 2) of section 20 has been made and a period of six months had expired thereafter without such final order having been made, within one year from the date of expiry of the said period of six months. (2) Notwithstanding anything contained in sub -section ( 1), where (a) the grievance in respect of which an application is made had arisen by reason of any order made at any time duri ng the period of three years immediately preceding the date on which the jurisdiction, powers and authority of the Tribunal becomes exercisable under this Act in respect of the matter t o which such order relates; and (b) no proceedings for the redressal of such grievance had been commenced before the said date before any High Court, the application shall be entertained by the Tribunal if it is made within the period referred to in clause ( a), or, as the case may be, clause ( b), of sub -section ( 1) or within a period of six months from the said date, whichever period expires later. (3) Notwithstanding anything contained in sub -section ( 1) or sub -section ( 2), an application may be admitted after the period of one year specified in clause ( a) or clau se (b) of sub -section ( 1) or, as the case may be, the period of six months specified in sub -section ( 2), if the applicant satisfies the Tribunal that he had sufficient cause for not making the application within such period. 22. Procedure and powers of Tr ibunals. (1) A Tribunal shall not be bound by the procedure laid down in the Code of Ci vil Procedure, 1908 (5 of 1908 ), but shall be guided by the principles of natural justice and subject to the other provisions of this Act and of any rules made by the Central Government, 14 the Tribunal shall have power to regulate its own procedure including the fixing of places and times of its inquiry and deciding whether to sit in public or in private. (2) A Tribunal shall decide every application made to it as expeditiously as possible and ordinarily every application shall be decided on a perusal of documents and written representation s and 1[after hearing such oral arguments as may be advanced ]. (3) A Tribunal shall have, for the purposes of 2[discharging its functions under this Act], the same powers as are vested in a civil court under the Code of Ci vil Procedure, 1908 (5 of 1908 ), while trying a suit, in respect of t he following matters, namely: (a) summoning and enforcing the attendance of any pe rson and examining him on oath; (b) requiring the discove ry and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872 ), requisitioning any public record or document or copy of such record or docu ment from any office; (e) issuing commissions for the examination of witness or document s; (f) reviewing its decisions; (g) dismissing a representation for d efault or deciding it ex parte ; (h) setting aside any order of dismissal of any representation for default or any o rder passed by it ex parte ; and (i) any other matter which may be prescribed by the Central Government. 23. Right of applicant to take assistance of legal practitioner and of Government, etc., to appoint presenting officers .(1) A person making an application to a Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to presen t his case before the Tribunal. (2) The Central Government or a State Government or a local or other authority or corporation 3[or society], to w hich the provisions of sub -section ( 3) of section 14 or sub -section ( 3) of section 15 apply, 4[may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised by it may present its case with respect to any application before a Tribunal .] 24. Conditions as to making of interim orders . Notwithstanding anything contained in any other provisions of this Act or in any other law for the time being in force, no interim order (whether by way of injunction or stay or in any other manner) shall be made on, or in any proceedings relat ing to, an application unless (a) copies of such application and of all documents in support of the plea for such interim order are furnished to the party against whom su ch application is m ade or proposed to be made; and (b) opportunity is given to such p arty to be heard in the matter: Provided that a Tribunal may dispense with the requirements of clauses ( a) and ( b) and make an interim order as an exceptional measure if it is satisfied, for reasons to be recorded in writing, that it is necessary so to do for preventing any loss being caused to the applicant which cannot be adequately compensated in money but any suc h interim order shall, if it is not sooner vacated, cease to have effect on the expiry of a period of fourteen days from the date on which it is made unless the said requirements 1. Subs. by Act 19 of 1986, s. 15, for after hearing of oral arguments , if any, allowed by the Tribunal in the circumstances of the case (w.e.f. 22 -1-1986). 2. Subs. by s. 15 , ibid., for holding any inquiry (w.e.f. 22 -1-1986). 3. Ins. by s. 1 6, ibid. (w.e.f. 22 -1-1986). 4. Subs. by s. 16, ibid., for may appoint (w.e.f. 22 -1-1986). 15 have been complied with before the expiry of that period and the Tribunal has continued the operation of the interim order. 1[25. Power of Chairman to transfer cases from one Bench to another. On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one Bench, for disposal, to any other Bench. 26. Decision to be by majority. If the Members of a Bench differ in opinion on any point, the point shall be decided accordi ng 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 who shall either hear the point or points himself or refer th e case for hearing on such point or points by one or more of the other Members of the Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Tribunal who have heard the case, including those who fi rst heard it.] 27. Exe cution of orders of a Tribunal. Subject to the other provisions of this Act and the rules, 2[the order of a Tribunal finally disposing of an application or an appeal shall be final and shall not be called in question in any court (inc luding a High Court) and such order] shall be executed in the same manner in which any final order of the nature referred to in clause ( a) of sub -section ( 2) of section 20 (whether or not such final order had actually been made) in respect of the grievance to which the application relates would have been executed. CHAPTER V MISCELLANEOUS 28. Exclusion of jurisdiction of courts except the Supreme Court under article 136 of the Constitution .On and from the date from which any jurisdiction, powers and authority becomes exercisable under this Act by a Tribunal in relation to recruitment and matters concerning recruitment to any Service or post or service matters concerning members of any Servic e or persons appointed to any Service or post, 3[no court except (a) the Supreme Court; or (b) any Industrial Tribunal, Labour Court or other authority constituted under the Industrial Disputes Act, 1947 (14 of 1947) or any other corresponding law for the time being in force, shall have], or be entitled to exercise any jurisdiction, powers or authority in relation to such recruitment or matters concerning such recr uitment or such service matters. 29. Transfer of pending cases .(1) Every suit or other proceeding pending before any court or other authority immediately before the date of establishment of a Tribunal under this Act, being a suit or proceeding the cause of action whereon it is based is such that it would have been, if it had arisen after such establishment, within the jurisdiction of such Tribunal, shall stand transferred on that date to such Tribunal: Provided that nothing in this sub -section shall apply to any appeal pending as aforesaid before a High Court 4***. (2) Every suit or other pro ceeding pending before a court or other authority immediately before the date with effect from which jurisdiction is conferred on a Tribunal in relation to any local or oth er authority or corporation 5[or society], being a suit or proceeding the cause of a ction whereon it is based is such that it would have been, if it had arisen after the said date, within the jurisdiction of such Tribunal, shall stand transferred on that date to such Tribunal: 1. Subs. by Act 19 of 1986, s. 17 , for sections 25 and 26 (w.e.f. 22-1-1986). 2. Subs. by s. 18 , ibid., for the order of a Tribunal finally disposing of an application (w.e.f. 22 -1-1986). 3. Subs. by s. 19 , ibid., for no court (except the Supreme Court under article 136 of the Constitution) shall have (w.e.f. 1 -11-1985). 4. The words or the Supreme Court omitted by s. 20 , ibid. (w.e.f. 22 -1-1986). 5. Ins. by s. 20, ibid. (w.e.f. 22 -1-1986). 16 Provided that nothing in this sub -section shall apply to any a ppeal pending as aforesaid before a High Court 1*** Explanation .For the purposes of this sub -section date with effect from which jurisdiction is conferred on a Tribunal , in relation to any local or other authority or corporation 2[or society], means the date with effect fr om which the provisions of sub -section ( 3) of section 14 or, as the case may be, sub-section ( 3) of section 15 are applied to such local or other authority or corporation 2[or society]. (3) Where immediately before the date of establishment of a Joint Administrative Tribunal any one or more of the States for which it is established, has or have a State Tribunal or State Tribunals, all cases pending before such State Tribunal or State Tribunals immediately before the sai d date together with the records thereof shall stand transferred on that date to such Joint Administrative Tribunal. Explanation .For the purposes of this sub -section, State Tribunal means a Tribunal established under sub -section ( 2) of section 4. (4) Wh ere any suit, appeal or other proceeding stands transferred from any court or other authority to a Tribunal under sub -section ( 1) or sub -section ( 2), (a) the court or other authority shall, as soon as may be after such transfer, forward the records of such suit, appeal or other p roceeding to the Tribunal; and (b) the Tribunal may, on receipt of such records, proceed to deal with such suit, appeal or other proceeding, so far as may be, in the same manner as in the case of an application under section 19 from the stage which was reached before such transfer or from any earlier stage or de novo as the Tribunal may deem fit. (5) Where any case stands transferred to a Joint Administrative Tribunal under sub -section ( 3), the Joint Administrative Tribunal may proceed to deal with such case from the stage which was reache d before it stood so transferred. 3[(6) Every case pending before a Tribunal immediately before the commencement of the Administrative Tribunals (Amendment) Act, 1987 (51 of 1987) , being a case the cause of action whereon it is based is such that it would have been, if it had arisen after such commencement, within the jurisdiction of any court, shall, together with the records thereof, stand transferred on s uch commencement to such court. (7) Where any case stands tr ansferred to a court under sub -section ( 6), that court may proceed to deal with such case from the stage which was reached before it stood so transferred.] 4[29A. Provision for filing of certain appeals. Where any decree or order has been made or passed by

4[29A. Provision for filing of certain appeals. Where any decree or order has been made or passed by any court (other than a High Court) in any suit or proceeding before the establishment of a Tribunal, being a suit or proceeding the cause of action whereon it is based is such that it would have been if it had arisen after such establishment, within the jurisdiction of such Tribunal, and no ap peal has been preferred against such decree or order before such establishment and the time for preferring such appeal under any law for the time being in force had not expire d before such establi shment, such appeal shall lie (a) to the Central Administra tive Tribunal, within ninety days from the date on which the Administrative Tribunals (Amendment) Bill, 1986 receives the assent of the President, or within ninety days from the date of receipt of the copy of such decree o r order, whichever is later, or (b) to any other Tribunal, within ninety days from its establishment or within ninety days from the date of receipt of the copy of such decr ee or order, whichever is later .] 30. Proceedings before a Tribunal to be judicial proceedings .All proceedings before a Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860 ). 1. The words or the Supreme Court omitted by Act 19 of 1986, s. 20 (w.e.f. 22 -1-1986). 2. Ins. by s. 20, ibid. (w.e.f. 22 -1-1986). 3. Ins. by Act 51 of 1987, s. 5 (w.e.f. 22-12-1987). 4. Ins. by Act 19 of 1986, s. 21 (w.e.f. 22 -1-1986). 17 31. Members and staff of Tribunal to be public servants. The 1[Chairman and other Members ] and the officers and other employees provided under section 13 to a Tribunal shall be deemed to be public servants within the meaning of secti on 21 of the Indian Penal Code (45 of 1860 ). 32. Protection of action taken in good faith .No suit, prosecution o r other legal proceeding shall lie against the Central or State Government or against the Chairman, 2*** or other Member of any Central or Joint or State Administrative Tribunal, or any other person authorised by such Chairman, 2*** or other Member for any thing which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. 33. Act to have overriding effect. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith containe d in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. 34. 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 appear to it to be necessary or expedie nt for removing the difficulty. (2) Every order made under this section shall, as s oon as may be after it is made, be laid before each House of Parliament. 35. Power of the Central Government to make rules .(1) The Central Government may, subject to the provisions of section 36, by notification, make rules to carry out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: (a) the case or cases which shall be decided by a Bench composed of more than 3[two members] under clause ( d) of sub -section ( 4) of section 5; (b) the procedure under sub -section ( 3) of section 9 for the investigation of misbehaviour or incapacity of 4[Chairman or other Member ]; (c) the salaries and allowances payable to, and the other terms and conditions of, the 5[Chairman and other Members ]; (d) the form in which an application may be made under section 19, the documents and other evidence by which such application shall be accompanied 6[and the fees payable in respect of the filing of such applicat ion or for the ser vice or execution of processes ;] (e) the rules subject to which a Tribunal shall have power to regulate its own procedure under sub-section ( 1) of section 22 and the additional matters in respect of which a Tribunal may exercise the power s of a civil court under clause ( i) of sub -section ( 3) of that section; and (f) any other matter which may be prescribed or in respect of which rules are required to be made by the Central Government. 36. Power of the appropriate Government to make rules . The appropriate Government may, by notification, make rules to provide for all or any of the following matters, namely: (a) the financial and administrative powers which the Chairman of a Tribunal may exercise over the 7*** Benches of the Tribunal under section 12; (b) the salaries and allowances and conditions of service of the officers and other employees of a Tribunal under sub -section ( 2) of section 13; and 1. Subs. by Act 1 of 2007, s. 13, for Chairman, Vive -Chairman and other Members (w.e.f. 19 -2-2007). 2. The word Vice -Chairman omitted by s. 1 4, ibid. (w.e.f. 19 -2-2007). 3. Subs. by Act 19 of 1986, s. 22, for three Members (w.e.f. 22 -1-1986). 4. Subs. by Act 1 of 2007, s. 15, for Chairman, Vice -Chairman or other Member (w.e.f. 19 -2-2007). 5. Subs. by s. 15, ibid., for Chairman, Vice -Chairman and other Member (w.e.f. 19 -2-2007). 6. Subs. by Act 19 of 1986, s. 22, for and the fees payable in respect of such application (w.e.f. 22 -1-1986). 7. The words principal Bench and the additional omi tted by s. 23 , ibid. (w.e.f. 22 -1-1986). 18 (c) any other matter not being a matter specified in section 35 in respect of which rules are required to be made by the appropriate Government. 1[36A. Power to make rules retrospectively. The power to make rules under clause ( c) of sub-section ( 2) of section 35 or clause ( b) of section 36 shall include the power to make such rules or any of them retrospectively from a date not earlier than the date on which this Act received the assent of the President, but no such retrospective effect shall be given to any such rule so as to prejudicially affect the interests of any person to whom such rule may be applicable]. 37. Laying of rules. (1) Every rule made under this Act by the Central Government 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 peri od 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 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 p reviously done under that rule. (2) Every rule made by a State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature. 1. Ins. by Act 51 of 1987, s. 6 (w.e.f. 22 -12-1987).

THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 ACT NO. 14 OF 2013 [22nd April, 2013 ] An Act to provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment and for matters connected therewith or incidental thereto. WHEREAS sexual harassment results in violation of the fundamental rights of a woman to equality under articles 14 and 15 of the Constitution of India and her right to life and to live with dignity under article 21 of the Constitution and right to practice any profession or to carry on any occupation, trade or business which includes a right to a safe environment free from sexual harassment; AND WHEREAS the protection against sexual harassment and the right to work with dignity are universally recognised human rights by international conventions and instruments such as Convention on the Elimination of all Forms of Discrimination against Women, which has been ratified on the 25th June, 1993 by the Government o f India; AND WHEREAS it is expedient to make provisions for giving effect to the said Convention for protection of women against sexual harassment at workplace. BE it enacted by Parliament in the Sixty -fourth Year of the Republic of India as follows : CHAPTER I PRELIMINARY 1. Short title , extent and com mencement .(1) This Act may be called the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. (2) It extends to the w hole of India. (3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint. 2. Definitions .In this Act, unless the context otherwise requires, (a) aggrieved woman means (i) in relation to a workplace, a woman, of any age whether employed or not, who alleges to have been subjected to any act of sexual harassment by the respondent; (ii) in relation to dwelling place or house, a woman of any age who is employed in such a dwelli ng place or house; (b) appropriate Government means (i) in relation to a workplace which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly (A) by the Central Government or the Union territory administration, the Central Government; (B) by the State Government, the State Government; 1. 9th December, 2013 , vide notification No. S.O. 3 606(E), dated 9th December, 2013 , see Gazette of India, Extraordinary, Part II, sec. 3( ii). 4 (ii) in relation to any workplace not covered under sub -clause (i) and falling within its territory, the State Government; (c) Chairperson means the Chairperson of the Local Complaints Committee nominated under sub-section (1) of section 7; (d) District Officer means on of ficer notified under section 5; (e) domestic worker means a woman who is employed to do the household work in any household for remuneration whether in cash or kind, either directly or through any agency on a temporary, permanent, part time or full time basis, but does not include any member of the family of the employer; (f) employee means a person emp loyed at a workplace for any work on regular, temporary, ad hoc or daily wage basis, either directly or through an agent, including a contractor, with or, without the knowledge of the principal employer, whether for remuneration or not, or working on a vol untary basis or otherwise, whether the terms of employment are express or implied and includes a co -worker, a contract worker, probationer, trainee, apprentice or called by any other such name; (g) employer means (i) in relation to any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit of the appropriate Government or a local authority, the head of that department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit or such other officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf; (ii) in any workplace not covered under sub -clause (i), any person responsible for the management, supervision and control of the workplace. Explanation . For the purposes of this sub -clause management includes the person or board or committee responsible for formulation and administration of polices for such organisation; (iii) in rel ation to workplace covered under sub -clauses (i) and (ii), the person discharging contractual obligations with respect to his or her employees; (iv) in relation to a dwelling place or house, a person or a household who employs or benefits from the employment of domestic worker, irrespective of the number, time period or type of such worker employed, or the nature of the employment or activities perfor med by the domestic worker; (h) Internal Committee means an Internal Complaints Committee constituted under section 4; (i) Local Committee means the Local Complaints Committee constituted under section 6; (j) Member means a Member of the Internal Com mittee or the Local Committee, as the case may be; (k) prescribed means prescribed by rules made under this Act; (l) Presiding Officer means the Presiding Officer of the Internal Complaints Committee nominated under sub -section (2) of section 4; (m) respondent means a person against whom the aggrieved woman has made a complaint under section 9; 5 (n) sexual harassment includes any one or more of the followi ng unwelcome acts or behavior (whether directly or by implication) namely: (i) physical contact and advances; or (ii) a demand or request for sexual favours; or (iii) making sexually coloured remarks; or (iv) showing pornography; or (v) any other unwelcome physical, verbal or non -verbal conduct of sexual nature; (o) workplace includes (i) any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit which is established, owned, controlled or wholly or substantially fi nanced by funds provided directly or indirectly by the appropriate Government or the local authority or a Government company or a corporation or a co -operative society; (ii) any private sector organisation or a private venture, undertaking, enterprise, institution, establishment, society, trust, non -governmental organisation, unit or s ervice provider carrying on commercial, professional, vocational, educational, entertainmental, industrial, health services or financial activities including production, supply, sale, distribution or service; (iii) hospitals or nursing homes; (iv) any spor ts institute, stadium, sports co mplex or competition or games venue, whether residential or not used for training, sports or other activities relating thereto; (v) any place visited by the employee arising out of or during the course of employment including transportation by the employer for undertaking such journey; (vi) a dwelling place or a house; (p) unorganis ed sector in relation to a workplace means an enterprise owned by individuals or self-employed workers and engaged in the pr oduction or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten. 3. Prevention of sexual harassment .(1) No woman shall be subjected to sexual harassment at any workplace. (2) The following circumstances, among other circumstances, if it occurs, or is present in relation to or connected with any act or behavior of sexual harassment may amount to sexual harassment: (i) implied or explicit promise of preferential treatment in her employment; or (ii) implied or explicit threat of detrimental treatment in her employment ; or (iii) implied or explicit threat about her present or future employment status; or (iv) interferenc e with her work or creating an intimidating or offensive or hostile work environment for her; or (v) humiliating treatment likely to affect her health or safety. CHAPTER II CONSTITUTION OF INTERNAL COMPLAINTS COMMITTEE 4. Constitution of Internal Complaints Committee . (1) Every employer of a workplace shall, by an order in writing, constitute a Committee to be known as the Internal Complaints Committee : 6 Provided that where the offices or administrative units of the workplace are located at different places or divisional or sub -divisional level, the Internal Committee shall be constituted at all administrative units or offices. (2) The Internal Committees shall consist of the following members to be nominated by the employer, namely: (a) a Presiding Officer who shall be a woman employed at a senior level at workplace from amongst the employees: Provided that in case a senior level woman employee is not available, the Presiding Officer shall be nominated from other offices or administrative units of the workplace referred to in sub -section (1): Provided further that in case the other offices or administrativ e units of the workplace do not have a senior level woman employee, the Presiding Officer shall be nominated fr om any other workplace of the same employer or other department or organisation; (b) not less than two Members from amongst employees preferably committed to the cause of women or who have had experience in socia l work or have legal knowledge; (c) one member from amongst non -governmental organisations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment: Provided that at least one -half of the total Members so nominated shall be women. (3) The Presiding Officer and every Member of the Internal Committee shall hold office for such period, not exceeding three years, fr om the date of their nomination as may be specified by the employer. (4) The Member appointed from amongst the non -government al organisations or associations shall be paid such fees or allowances for holding the proceedings of the Internal Committee, by the employer, as may be prescribed. (5) Where the Pr esiding Officer or any Member of the Internal Committee, (a) contravenes the provisions of section 16; or (b) has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or (c) he has been found guilty in any disciplinary proceedings or a discip linary proceeding is pending against him; or (d) has so abused his position as to render his continuance in office pre judicial to the public interest, such Presiding Officer or Member, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section. CHAPTER III CONSTITUTION OF LOCAL COMPLAINTS COMMITTEE 5. Notification of District Officer .The appropriate Government may notify a District Magistrate or Additional District Magistrate or the Collector or Deputy Collector as a District Officer for every District to exercise powers or discharge functions under this Act. 6. Constitution a nd jurisdiction of 1[Local Committee] .(1) Every District Officer shall constitute in the district concerned, a committee to be known as the 1[Local Committee ] to receive complaints of 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for Local Complaints Committee (w.e.f. 6 -5-2016). 7 sexual harassment from establishments where the 1[Internal Committee ] has not been constituted due to having less than ten workers or if the complaint is against the employer himself. (2) The District Officer shall designate one nodal officer in every block, taluka and tehsil in rural or tribal area and ward or municipality in the urban area, to receive complaints and forward the same to the concerned 2[Local Committee ] within a period of seven days. (3) The jurisdiction of the 2[Local Committee ] shall extend to the areas of the district where it is constituted . 7. Composition, tenure and other terms and conditions of 2[Local Committee ].(1) The 2[Local Committee ] shall consist of the following members to be nominated by the District Officer, namely: (a) a Chairperson to be nominated from amongst the eminent women in the field of social work and committed to the cause of women; (b) one Member to be nominated from amongst the women working in block, taluka or tehsil or ward or municipality in the district; (c) two Members, of whom at least one shall be a woman, to be nominated from amongst such non-governmental organisations or assoc iations committed to the cause of women or a person familiar with the issues relating to sexual harassment, which may be pres cribed: Provided that at least one of the nominees should, preferably, have a background in law or legal knowledge: Provided furth er that at least one of the nominees shall be a woman belonging to the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes or minority community notified by the Central Government, from time to time; (d) the concerned officer dealing wit h the social welfare or women and child development in the district, shall be a member ex officio . (2) The Chairperson and every Member of the Local Committee shall hold office for such period, not exceeding three years, form the date of their appointment as may be specified by the District Officer. (3) Where the Chairperson or any Member of the 2[Local Co mmittee] (a) contravenes t he provisions of section 16; or (b) has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or (c) has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or (d) has so abused his position as to render his continuance in office prejudicial to the public interest, such Chairperson or Member, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section. (4) The Chairperson or Members of the Local Committee other than the Member s nominated under clauses (b) and (d) of sub -section (1) shall be entitled to such fees or allowances for holding the proceedings of the Local Committee as may be prescribed. 8. Grants and audit .(1) The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the State Government grants of such sums of money as the Central 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for Internal Complaints Committe e (w.e.f. 6 -5-2016). 2. Subs. by s. 3 and the Second Schedule, ibid., for Local Compla

2016). 2. Subs. by s. 3 and the Second Schedule, ibid., for Local Complaints Committee (w.e.f. 6 -5-2016). 8 Government my think fit, for being utilised for the payment of fees or allowances referre d to in sub - section (4) of section 7. (2) The State Government may set up an agency and transfer the grants made under sub -section (1) to that agency. (3) The agency shall pay to the District Officer, such sums as may be required for the payment of fees or allowances referred to in sub -section (4) of section 7. (4) The accounts of the agency referred to in sub -section (2) shall be maintained and audited in such manner as may, in consultation with the Accountant General of the State, be prescribed and the person holding th e cust ody of the accounts of the agency shall furnish, to the State Government, before such date, as may be prescribed, its audited copy of accounts together with auditors report thereon. CHAPTER IV COMPLAINT 9. Complaint of sexual harassment .(1) Any aggrieved woman may make, in writing, a complaint of sexual harassment at workplace to the Internal Committee if so constituted , or the Local Committee, in case it is not so constituted, within a period of three months from the date of incident and in case of a series of incidents, within a period of three months from the date of last incident: Provided that where such complaint cannot be made in writing, the Presiding Officer or any Member of the Internal Committee or the Chairperson or any Member of the Local Committee, as the case may be, shall render all reasonable assistance to the woman for making the complaint in writing: Provided further that the Internal Committee or, as the case may be, the Local Committee may, for the reasons to be recorded in writing, extend the time limit not exceeding three months , if it is satisfied that the circumstances were such which prevented the woman from filing a complaint within the said period. (2) Where the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or such other person as may be prescribe d may make a complaint under this section. 10. Conciliation. (1) The Internal Committee or, as the case may be, the Local Committee, may, before initiating an inquiry under section 11 and at the request of the aggrieved woman take steps to settle the matter between her and the respondent through conciliation: Provided that no monetary settlement shall be made as a basis of conciliation. (2) Where settlement has been arrived at under sub -section (1), the Internal Committee or the Local Committee, as the case may be, shall record the settlement so arrived and forward the same to the employer or the District Officer to take action as specified in the recommendation. (3) The Internal Committee or the Local Committee, as the case may be, shall provide the co pies of the settlement as recorded under sub -section (2) to the aggrieved woman and the respondent. (4) Where a settlement is arrived at under sub -section (1), no further inquiry shall be conducted by the Internal Committee or the Local Committee, as the case may be. 11. Inquiry into complaint. (1) Subject to the provision s of section 10, the Internal Committee or the Local Committee, as the case may be, shall, where the respondent is an employee, proceed to make inquiry into the complaint in accordance with the provisions of the service rules applicable to the respondent an d where no such rules exist, in such manner as may be prescribed or in case of a domestic worker, the Local Committee shall, if prima facie case exist, forward the complaint to the police, within a period of seven days for registering the case under sectio n 509 of the Indian Penal Code (45 of 1860) , and any other relevant provisions of the said Code where applicable: 9 Provided that where the aggrieved woman informs the Internal Committee or the Local Committee, as the case may be, that any term or condition of the settlement arrived at under sub -section (2) of section 10 has not been complied with by the respondent, the Internal Committee or the Local Committee shall proceed to make an inquiry into the complaint or, as the case may be, forward the complaint t o the police: Provided further that where both the parties are employees, the parties shall, during the course of inquiry, be given an opportunity of being heard and a copy of the findings shall be made available to both the parties enabl ing them to make r epresentation against the findings before the Committee. (2) Notwithstanding an ything contained in section 509 of the Indian Penal Code (45 of 1860) , the court may, when the respondent is convicted of the offence, order payment of such sums as it may consider appropriate, to the aggrieved woman by the respondent, having regard to the provisions of section 15. (3) For the purpose of making an inquiry under sub -section (1), the Internal Committee or the Local Committee, as the case may be, shall have the same powers as are vested in a civil court the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit in respect of the following matters, namely: (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; and (c) any other matter which may be prescribed. (4) The inquiry under sub -section (1) shall be completed within a period of ninety days. CHAPTER V INQUIRY INTO COMPLAINT 12. Action during pendency of inquiry .(1) During the pendency of an inquiry on a written request made by the aggrieved woman, the Internal Committee or the local Committee, as the case may be, may recommend to the employer to (a) transfer the aggrieved woman or the respondent to any other workplace; or (b) grant leave to the aggrieved woman up to a period of three months; or (c) grant such other relief to the aggrieved woman a may be prescribed. (2) The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled. (3) On the recommendation of the Internal Committee or the Local Committee, as the case may be, under su b-section (1), the employer shall implement the recommendations made under sub -section (1) and send the report of such implementation to the Internal Committee or the Local Committee, as the case may be. 13. Inquiry report .(1) On the completion of an inquiry under this Act, the Internal Committee or the Local Committee , as the case may be, shall provide a report of its findings to the employer, or as the case may be, the District Officer within a period of ten days from the date of completion of the inquiry and such repo rt be made available to the concerned parties. (2) Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has not been proved, it shall recommend to the employ er and the District Officer that no action is required to be taken in the matter. 10 (3) Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has been proved, it shall recommend to the employer or the District Officer, as the case may be (i) to take action for sexual harassment as a misconduct in accordance with the provisions of the service rules applicable to the respondent or where no such service rules have been made, in such manner as may be prescribed; (ii) to deduct, notwithstanding anything in the service rules applicable to the respondent, from the salary or wages of the respondent such sum as it may consider appropriate to be paid to the aggrieved woman or to h er legal he irs, as it may determine, in accordance with the provisions of section 15: Provide that in case the employer is unable to make such deduction from the salary of the respondent due to his being absent from duty or cessation of employment it may direct to th e respondent to pay such sum to the aggrieved woman: Provided further that in case the respondent fails to pay the sum referred to in clause (ii), the Internal Committee or as, the case may be, the Local Committee may forward the order for recovery of the sum as an arrear of land revenue to the concerned District Officer. (4) The employer or the District Officer shall act upon the recommendation wit hin sixty days of its receipt by him. 14. Punishment for false or malicious complaint and false evidence. (1) Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that the allegation against the respondent is malicious or the aggrieved woman or any other person making the complaint has made the complaint knowing it to b e false or the aggrieved woman or any other person making the complaint has produced any forged or misleading document, it may recommend to the employer or the District Officer, as the case may be, to take action against the woman or the person who has mad e the complaint under sub -section (1) or sub -section (2) of section 9, as the case may be, in accordance with the provisions of the service rules applicable to her or him or where no such service rules exist, in such manner as may be prescribed: Provided that a mere inability to substantiate a complaint or provide adequate proof need not attract action against the complainant under this section: Provided further that the malicious intent on part of the complainant shall be established after an inquiry in a ccordance with the procedure prescribed, before any action is recommended. (2) Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that during the inquiry any witness has given false evidence or produced any for ged or misleading document, it may recommend to the employer of the witness or the District Officer, as the case may be, to take action in accordance with the provisions of the service rules applicable to the said witness or where no such service rules exi st, in su ch manner as may be prescribed. 15. Determination of compensation. For the purpose of determining the sums to be paid to the aggrieved woman under clause (ii) of sub -section (3) of section 13, the Internal Committee or the Local Committee, as the case may be, shall have regard to (a) the mental trauma, pain, suffering and emotional distress caused to the aggrieved woman; (b) the loss in the career opportunity due to the incident of sexual harassment; (c) medical expenses incurred by the victim for physical or psychiatric treatment; (d) the income and financial status of the respondent; (e) feasibility of such payment in lump sum or in instalments. 11 16. Prohibition of publication or making known contents of complaint and inquiry proceedings. Notwithstan ding anything contained in the Right to Information Act, 2005 (22 of 2005) , the contents of the complaint made under section 9, the identity and addresses of the aggrieved woman, respondent and witnesses, any information relating to conciliation and inquiry proceedings, recommendations of the Internal Committee or the Local Committee, as the case may be, and the action taken by the employer or the District Officer under the provisions of this Act shall not be p ublished, communicated or made known to the public, press and media in any manner: Provided that information may be disseminated regarding the justice secured to any vicitim of sexual harassment under this Act without disclosing the name, address, id entity or any other particulars calculated to lead to the identification of the aggrieved woman and witnesses. 17. Penalty for publication or making known contents of complaint and inquiry proceedings . Where any person entrusted with the duty to handle or deal with the complaint, inquiry or any recommendations or action to be taken under the provisions of this Act, contravenes the provision s of section 16, he shall be liable for penalty in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist, in such manner as may be prescribed. 18. Appeal. (1) Any person aggrieved from the rec ommendations made under sub -section (2) of section 13 or under clause (i) or clause (ii) of sub -section (3) of section 13 or sub -section (1) or sub - section (2) of section 14 or section 17 or non -implementation of such recommendations may prefer an appeal t o the court or tribunal in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist then, without prejudice to provisions contained in any other law for the time being in force, the person aggri eved may prefer an appeal in such manner as may be prescribed. (2) The appeal under sub -section (1) shall be preferred within a period of ninety days of the recommendations. CHAPTER VI DUTIES OF EMPLOYER 19. Duties of employer. Every employer shall (a) provide a safe working environment at the workplace with shall include safety from the persons coming into contact at the workplace; (b) display at any conspicuous place in the workplace, the penal consequences of sexual harassments; and the order constit uting, the Internal Committee under sub -section (1) of section 4; (c) organise workshops and awareness prog rammes at regular intervals for sensiti sing the employees with the provisions of the Act and orientation programmes for the members of the Internal Committee in the manner as may be prescribed; (d) provide necessary facilities to the Internal Committee or the Local Committee, as the case may be, for dealing with the complaint and conducting an inquiry; (e) assist in securing the attendance of respondent and witnesses before the Internal Committee or the Local Committee, as the case may be; (f) make available such information to the Internal Committee or the Local Committee, as the case be, as it may require having regard to the complaint made under sub -section (1) of section 9; (g) provide assistance to the woman if she so chooses to file a com plaint in relation to the offence under the Indian Penal Code (45 of 1860) or any other law for the time being in force; (h) cause to initiate action, under the Indian Penal Code (45 of 1860) or any other law for the time being in force, against the perpet rator, or if the aggrieved woman so desires, where the perpetrator is not an employee, in the workplace at which the incident of sex ual harassment took place; 12 (i) treat sexual harassment as a misconduct under the service rules and initiate action for such misconduct; (j) monitor the timely submission of reports by the Internal Committee. CHAPTER VII DUTIES AND POWERS OF DISTRICT OFFICER 20. Duties and powers of District Officer. The District Officer shall , (a) monitor

ISTRICT OFFICER 20. Duties and powers of District Officer. The District Officer shall , (a) monitor the timely submission of report furnished by the Local Committee; (b) take such measures as may be necessary for engaging non -governmental organisations for creation of awareness on sexual harassment and the rights of the women. CHAPTER VIII MISCE LLANEOUS 21. Committee to submit annual report . (1) The Internal Committee or the Local Committee, as the case may be, shall in each calendar year prepare, in such form and at such time as may be prescribed, an annual report and submit the same to the emp loyer and the District Officer. (2) The District Officer shall forward a brief report on the annual reports received under sub -sectio n (1) to the State Government. 22. Employer to include information in annual report .The employer shall include in its report the number of cases filed, if any, and their disposal under this Act in the annual report of his organisation or where no such report is required to be prepared, intimate such number of cases, if any, to the District Officer. 23. Appropriate Govern ment to monitor implementation and maintain data .The appropriate Government shall monitor the implementation of this Act and maintain date on the number of cases filed and disposed of in respect of all cases of sexual harassment at workplace. 24. Appropriate Government to take measures to publicise the Act .The appropriate Government may, subject to the availability of financial and other resources, (a) develop relevant information, education, communication and training materials, and organise awareness programmes, to advance the understanding of the public of the provisions of this Act providing for protection against sexual harassment of woman at workplace; (b) formulate orientation and training programmes for the members of the 1[Local Committee ]. 25. Power to call for information and inspection of records. (1) The appropriate Government, on being satisfied that it is necessary in the public interest or in the interest of women employees at a workplace to do so, by order in writing, (a) call upon any employer or District Officer to furnish in writing such information relating to sexual harassment as it may require; (b) authorise any officer to make inspection of the records and workplace in relation to sexual harassment, who shall submit a report of such inspection to it within such period as may be specified in the order. (2) Every employer and District Officer shall produce on demand before the officer making the inspection all information, records and other documents in his custody hav ing a bearing on the subject matter of such inspection. 26. Penalty for non -compliance with provisions of Act .(1) Where the employer fails to (a) constitute an Internal Committee under sub -section (1) of section 4; 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for Local Complaints Committee (w.e.f. 6 -5-2016). 13 (b) take action under sections 13, 14 and 22; and (c) contravenes or attempts to contravene or abets contravention of other provisions of this Act or any rules made thereunder, he shall be punishable with fine which may extend to fifty thousand rupees. (2) If any employer, after having been previously convicted of an offence punishable under this Act subsequently commits and is convicted of the same offence, he shall be liable to (i) twice the punishment, which might have been imposed on a first conviction, subject to the punishment being maximum provided for the same offence: Provided that in case a higher punishment is prescribed under any other law for the time being in force, for the offence for which the accused is being prosecuted, the court shall take due cognizance of the same while awarding the punishment; (ii) cancellation, of his licence or withdrawal, or non -renewal, or approval, or cancellation of the registration, as the case may be, by the Government or local authority required for carrying on his business or activity. 27. Cognizance of offence by courts. (1) No court shall take cognizance of any offence punishable under this Act or any rules made thereunder, save on a complaint made by the aggrieved woman or any person authorised by the Internal Committee or Local Committee in this behalf. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punish able under this Act. (3) Every offence under this Act shall be non -cognizable. 28. Act not in derogation of any other law .The prov isions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in for ce. 29. Power of appropriate Government to make rules. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: (a) the fees or allowances to be paid to the Members under sub -section (4) of section 4; (b) nomination of members under clause (c) of sub -section (1) of section 7; (c) the fees or allowances to be paid to the Chairperson, and Members under sub -section (4) of section 7; (d) the person who may make complaint under sub -section (2) of section 9; (e) the manner of inquiry under sub -section (1) of section 11; (f) the powers for making an inquiry under clause (c) of sub -section (2) of section 11; (g) the relief to be recommended under clause (c) of sub -section (1) of section 12; (h) the manner of action to be taken under clause (i) of sub -section (3) of section 13; (i) the manner of actio n to be taken under sub -section s (1) and (2) of section 14; (j) the manner of action to be taken under section 17; (k) the manner of appeal under sub -section (1) of section 18; 14 (l) the manner of organis ing workshops, awareness programmes for sensitis ing the employees and orientation programmes for the members of the Internal Committee under clause (c) of section 19; and (m) the form and time for preparation of annual report by Internal Committee and the Local Committee under sub -section (1) of section 21. (3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made, before e ach 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 ses sions 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. (4) Any rule made under sub -section (4) of section 8 by the State Government shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. 30. Power to remove dif ficulties. (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 it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

THE CODE OF CIVIL PROCEDURE, 1908 ACT NO. 5 OF 19081 [21st March, 1908.] An Act to consolidate and amend the laws relati ng to the procedure of the Courts of Civil Judicature. WHEREAS it is expedient to consolidate and amend the laws relating to the procedure of the Courts of Civil Judicature: It is hereby enacted as follows : PRELIMINARY 1. Short title, commencement and ex tent. (1) This Act may be cited as the Code of Civil Procedure, 1908. (2) It shall come into force on the first day of January, 1909. 1. This Act has been amended in its application to Assam by Assam Acts 2 of 1941 and 3 of 1953; to Tamil Nadu by Madras Act 34 of 1950, Madras A. O. 1950, and Tamil Nadu Act 15 of 1970; to Punjab by Punjab Act 7 of 1934; to Uttar Pradesh by U.P. Acts 4 of 1925, 35 of 1948, 24 of 1954, 17 of 1970, 57 of 1976 and 31 of 1978; to Karnataka by Mysore Act 14 of 1955; to Kerala by Kerala Act 13 of 1957; to Rajasthan by Rajasthan Act 19 of 1958; to Maharashtra by Maharashtra Act 22 of 1960 and 25 of 1970; It has been extended to Berar by the Berar Laws Act, 1941 (4 of 1941) and, by notification under ss. 5 and 5A of the Schedule Districts Act, 1874 (14 of 18 74), also to the following Scheduled Districts: (1) The district of Jalpaiguri, Cachar (excluding the North Cachar Hills , Goalpara (including the Eastern Duars), Kamrup, Darrang, Nowgong (excluding the Mikir Hill Tracts) Sibsagar (excludi ng the Mikir Hill Tracts) and Lakhimpur (excluding the Dibrugarh Frontier Tracts): Gazette of India, 1909, Pt. 1. p. 5 and ibid, 1914, Pt . I, p. 1690. (2) The District of Darjeeling and the District of Hazaribagh, Ranchi, Palamau and Manbhum in Chota Na gpur: Calcutta Gazette, 1909, Pt. I, p. 25 and Gazette of India, 1909, Pt. I, p. 33. (3) The Province of Kumaon and Garhwal and the Tarai Parganas (with modifications): U.P. Gazette, 1909, Pt. I, p. 3 and Gazette of India, 1909, Pt. I, p. 31. (4) The Parga na of Jaunsar -Bawar in Dehradun and the Scheduled portion of the Mirzapur District : U.P. Gazette, 1909, Pt. I, p. 4 and Gazette of India, 1909, Pt. I, p. 32. (5) Coorg: Gazette of India, 1909, Pt. I, p. 32. (6) Scheduled Districts in the Punjab: Gazette o f India, 1909, Pt. I, p. 33. (7) Sections 36 to 43 to all the Scheduled Districts in Madras, Gazette of India, 1909, Pt. I. , p. 152. (8) Scheduled Districts in the C.P., except so much as is already in force and so much as authorizes the attachment and sal e of immovable property in execution of a decree, not being a decree directing the sale of such property: Gazette of India, 1909, Pt. I, p. 239. (9) Ajmer -Merwara except ss. 1 and 155 to 158: Gazette of India, 1909, Pt. II, p. 480. (10) Pargana Dhalbhum, t he Municipality of Chaibassa in the Kolhan and the Porahat Estate in the District of Singhbhum: Calcutta, Gazette of India, 1909, Pt. I, p. 453 and Gazette of India, 1909 , Pt. I, p. 443. Under s. 3(3)(a) of the Sonthal Parganas Settlement Regulation (3 of 1872), ss. 38 to 42 and 156 and rules 4 to 9 in Order XXI in the First Schedule have been declared to be in force in the Sonthal Parganas and the rest of the Code for the trial of suits referred to in s. 10 of the Sonthal Parganas Justice Regulation, 1893 (5 of 1893): see Calcutta, Gazette, 1909, Pt. I, p. 45. It has been declared to be in force in Panth Piploda by the Panth Piploda Laws Regulation , 1929 (1 of 1929), s. 2; in the Khondmals District by the Khondmals Laws Regulatio n, 1936 (4 of 1936), s. 3 and Sch. and in the Angul District by the Angul Laws Regulation, 1936 (5 of 1936), s. 3 and Sch. It has been extended to the District of Koraput and Ganjam Agency by Orissa Regulation (5 of 1951) , s.2. It has been extended to the State of Manipur (w.e.f. 1 -1-1957) by Act 30 of 1950, s. 3 to the whole of the Union Territory of Lakshadweep (w.e.f. 1 -10-1967) by Regulation 8 of 1965, s. 3 and Sch.: to Goa, Daman and Diu (w.e.f. 15 -6-1966) by Act 30 of 1965, s. 3; to Dadra and Nagar Ha veli (w.e.f. 1 -7-1965) by Reg. 6 of 1963, s. 2 and Sch. 1 and to the State of Sikkim (w.e.f. 1 -9-1984), vide Notification No. S.O. 599 (E), dated 13 -8-1984, Gazette of India , Extraordinary., Part. II, s. 3. 32 1[(3) It extends to the whole of India except 2* * * * * (b) the State of Nagaland and the trib al areas : Provided that the State Government concerned may, by notification in the Official Gazette, extend the provisions of this Code or any of them to the whole or part of the State of Nagaland or such tribal areas, as the case may be, with such supple mental, incidental or consequential modifications as may be specified in the notification. Explanation . In this clause, tribal areas means the territories which, immediately before the 21st day of January , 1972 , were included in the tribal areas of Assam as referred to in paragraph 20 of the Sixth Schedule to the Constitution. (4) In relation to the Amindivi Islands, and the East Godavari, West Godavari and Visakhapatnam Agencies in the State of Andhra Pradesh and the Union Territory of Lakshadweep, the application of this Code shall be without prejudice to the application of any rule or regulation for the time being in force in such Islands, Agencies or such Union Territory, as the case may be, relating to the application of this Code.] 2. Definition s.In this Act, unless there is anything repugnant in the subject or context, (1) Code includes rules; (2) decree means the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the righ ts of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question within 3*** section 144, but shall n ot include (a) any adjudication from which an appeal lies as an appeal from an order, or (b) any order of dismissal for default. Explanation. A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final; (3) decree -holder means any person in whose favour a decree has been passed or an order capable of execution has been made; (4) district means the local limits of the jurisdiction of a principal Civil Court of original jurisdiction (hereinafter called a District Court ), and includes the local limits of the ordinary original civil jurisdiction of a High Court; 4[(5) foreign Court means a Court situate outside India and not established or continued by the authority of the Central Government;] (6) foreign judgment means the judgment of a foreign Court; (7) Government Pleader includes any officer appointed by the State Government to perform all or any of the functions expressly imposed by this Code on the Government Pleader and also any pleader acting under the directions of the Government Pleader; 5[(7A) High Court in relation to the Andaman and Nicobar Islands, m eans the High C ourt in Calcutta; (7B) India , except in sections 1, 29, 43, 44, 6[44A, ] 78, 79, 82, 83 and 87A, means the territory of India excluding the State of Jammu and Kashmir;] (8) Judge means the presiding officer of a Civil Court; 1. Subs. by Act 104 of 1976, s. 2, for su b-section ( 3) (w.e.f. 1 -2-1977). 2. Clause ( a) omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31 -10- 2019). 3. The words and figures section 47 or omitted by s. 3, ibid. (w.e.f. 1 -2-1977). 4. Subs. by Act 2 of 1951, s. 4, for clause 5 (w .e.f. 1 -4-1951). 5. Ins. by s. 4, ibid. (w.e.f. 1 -4-1951) . 6. Ins. by Act 42 of 1953, s. 4 and the Third Schedule (w.e.f. 23 -12-1953). 33 (9) judgmen t means the statement given by the Judge of the grounds of a decree or order; (10) judgment -debtor means any person against whom a decree has been passed or an order capable of execution has been made; (11) legal representative means a person who in law repres ents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued ; (12) mesne profits of property means those profits which the person in wrongful possession of such property actually received or might with ordinary diligence have received therefrom, together with interest on such profits, but shall not include profit s due to improvements made by the person in wrongful possession; (13) movable property includes growing crops; (14) order means the formal expression of any decision of a Civil Court which is not a decree; (15) pleader means any person entitled to ap pear and plead for another in Court, and includes an advocate, a vakil and an attorney of a High Court; (16) prescribed means prescribed by rules; (17) public officer means a person falling under any of the following descriptions, namely : (a) every Judge; (b) every member of 1[an All -India Service]; (c) every commissioned or gazetted officer in the military 2[naval or air] forces of. 3[the Union] 4*** while serving under the Government; (d) Every officer of a court of Justice whose duty it is, as su ch officer, to investigate or report on any matter of law or fact, or to make, authenticate or keep any document, or to take charge or dispose of any property, or to execute any judicial process, or to administer any oath, or to interpret, or to preserve o rder, in the Court, and every person especially authorised by a court of Justice to perform any of such duties; (e) every person who holds any office by virtue of which he is empowered to place or keep any person in confinement; (f) every officer of the Go vernment whose duty it is, as such officer, to prevent offences, to give information of offences, to bring offenders to justice, or to protect the public health, safety or convenience; (g) every officer whose duty it is, as such officer, to take, receive, keep or expend any property on behalf of the Government, or to make any survey, assessment or contract on behalf of the Government, or to execute any revenue process, or to investigate, or to report on, any matter affecting the pecuniary interests of the G overnment, or to make, authenticate or keep any document relating to the pecuniary interests of the Government, or to prevent the infraction of any law for the protection of the pecuniary interests of the Government; and (h) every officer in the service or pay of the Government, or remunerated by fees or commission for the performance of any public duty; (18) rules means rules and forms contained in the First Schedule or made under section 122 or section 125; (19) share in a corporation shall be deemed to include stock, debenture stock, debentures or bonds; and (20) signed , save in the case of a judgment or decree, includes stamped. 1. Subs. by Act 104 of 1976, s. 3, for the Indian Civil Service (w.e.f. 1 -2-1977). 2. Subs. by Act 35 of 1934, s. 2 and the Sch edule , for or naval. 3. Subs.

Act 35 of 1934, s. 2 and the Sch edule , for or naval. 3. Subs. by the A.O. 1950, for his Majesty. 4. The words including His Majestys Indian Marine Service omitted by Act 35 of 1934, s. 2 and the Sch edule . 34 1* * * * * 3. Subordination of Courts. For the purposes of this Code, the District Court is subordinate to the High Court, and every Civil Court of a grade inferior to that of a District Court and every Court of Small Causes is subordinate to the High Court and District Court. 4. Savings. (1) In the absence of any specific provision to the contrary, nothing in thi s Code shall be deemed to limit or otherwise affect any special or local law now in force or any special jurisdiction or power conferred, or any special form of procedure prescribed, by or under any other law for the time being in force. (2) In particular and without prejudice to the generality of the proposition contained in sub -section (1), nothing in this Code shall be deemed to limit or otherwise affect any remedy which a landholder or landlord may have under any law for the time being in force for the recovery of rent of agricultural land from the produce of such land. 5. Application of the Code to Revenue Courts. (1) Where any Revenue Courts are governed by the provisions of this Code in those matters of procedure upon which any special enactment appli cable to them is silent, the State Government 2*** may, by notification in the Official Gazette, declare that any portions of those provisions which are not expressly made applicable by this Code shall not apply to those Courts, or shall only apply to them with such modifications as the State Government 3*** may prescribe. (2) Revenue Court in sub -section (1) means a Court having jurisdiction under any local law to entertain suits or other proceedings relating to the rent, revenue or profits of land used for agricultural purposes, but does not include a Civil Court having original jurisdiction under this Code to try such suits or proceedings as being suits or proceedings of a civil nature. 6. Pecuniary jurisdiction. Save in so far as is otherwise expressly provided, nothing herein contained shall operate to give any Court jurisdiction over suits the amount or value of the subject -matter of which exceeds the pecuniary limits (if any) of its ordinary jurisdiction. 7. Provincial Small Cause Courts. The followi ng provisions shall not extend to Courts constituted under the Provincial Small Cause Courts Act, 1887(9 of 1887) 4[or under the Berar Small Cause Courts Law, 1905], or to Courts exercising the jurisdiction of a Court of Small Causes 5[under the said Act o r Law], 6[or to Courts in 7[any part of India to which the said Act does not extend] exercising a corresponding jurisdiction that is to say , (a) so much of the body of the Code as relates to (i) suits excepted from the cognizance of a Court of Small Ca uses; (ii) the execution of decrees in such suits; (iii) the execution of decrees against immovable property; and (b) the following sections, that is to say, section 9, section s 91 and 92 , sections 94 and 95 8[so far as they authorize or relate to] (i) orders for the attachment of immovable property, (ii) injunctions, 1. Clause (21) omitted by Act 2 of 1951, s. 4 , Earlier Clause (21) ins. by the A.O. 1950 . 2. The words with the previous sanction of the G.G. in C, omitted by Act 38 of 1920, s. 2 and the First Sch edule Pt. I. 3. The words with the sanction aforesaid omitted by s. 2 and the First Sch edule Pt. I, ibid. 4. Ins. by Act 4 of 1941, s. 2 and the Third Sch edule . 5. Subs. by s. 2 and the Third Sch edule ., ibid., for under that Act. 6. Ins. by Act 2 of 1951, s. 5. 7. Subs. by the Adaptation of Laws (No. 2) Order, 1956, for Part B States. 8. Subs. by Act 1 of 1926, s. 3, for so far as they relate to inju nctions and interlocutory orders . 35 (iii) the appointment of a receiver of immovable property, or (iv) the interlocutory orders to in clause (e) of section 94], and section s 96 to 112 and 115. 8. Presidency Small Cause Court s.Save as provided in sections 24, 38 to 41, 75, clauses (a), (b) and (c), 76, 1[77, 157 and 158], and by the Presidency Small Cause Courts Act, 1882 (15 of 1882), the provisions in the body of this Code shall not extend to any suit or proceeding in any C ourt of Small Causes established in the towns of Calcutta, Madras and Bombay: 2[Provided that (1) the High Courts of Judicature at Fort William, Madras and Bombay, as the case may be, may from time to time, by notification in the Official Gazette, direct3 that any such provisions not inconsistent with the express provisions of the Presidency Small Cause Courts Act, 1882 (15 of 1882), and with such modifications and adaptations as may be specified in the notification, shall extend to suits or proceedings o r any class of sui ts or proceedings in such Court ; (2) all rules heretofore made by any of the said High Courts under section 9 of the Presidency Small Cause Courts Act, 1882 (15 of 1882) shall be deemed to have been validly made.] PART I SUITS IN GENERAL JURISDICTION OF THE COURTS AND Res Judicata 9. Courts to try all civil suits unless barred. The Courts shall (subject to the provisions herein contained) have jurisdiction to try all suits of a civil nature excepting suits of which their cognizance is either expressly or impliedly barred. 4[Explanation I].A suit in which the right to property or to an office is contested is a suit of a civil nature, notwithstanding that such right may depend entirely on the decision of questions as to religious rites or ce remonies. 5[Explanation II].For the purposes of this section, it is immaterial whether or not any fees are attached to the office referred to in Explanation I or whether or not such office is attached to a particular place.] STATE AMENDMENTS Maharashtra . Section 9A of the Code of Civil Procedure, 1908, in its application to the State of Maharashtra (hereinafter referred to as the principal Act), shall be deleted. [Vide Maharashtra Act 61 of 2018, sec. 2.] Notwithstanding the deletion of section 9A of the principal Act , (1) where consideration of a preliminary issue framed under section 9A is pending on the date of commencement of the Code of Civil Procedure (Maharashtra Amendment) Act, 2018 (hereinafter, in this section, referred to as the Amendment Act), the said issue shall be deemed to be an issue framed under Order XIV of the principal Act and shall be decided by the Court, as it deems fit, along with all other issues, at the time of final disposal of the suit itself : Provided that, the evidence , if any, led by any party or parties to the suit, on the preliminary issue so framed under section 9A, shall be considered by the Court along with evidence, if any, led on other issues in the suit, at the time of final disposal of the suit itself ; (2) in all the cases, where a preliminary issue framed under section 9A has been decided, holding that the Court has jurisdiction to entertain the suit, and a challenge to such decision is pending before a revisional Court, on the date of commencement of the Ame ndment Act, such revisional proceedings shall stand abated : 1. Subs. by Act 104 of 1976, s. 4, for 77 and 155 to 158 (w.e.f. 1 -2-1977). 2. Added by Act 1 of 1914, s. 2. 3. For instance of such direction, see Calcutta Gazette, 1910, Pt. I, p. 814. 4. Explanation renumbered as Explanation I thereof by Act 104 of 1976, s. 5 (w.e.f. 1 -2-1977). 5. Ins. by s. 5, ibid. (w.e.f. 1 -2-1977). 36 Provided t hat, where a decree in such suit is appealed from any error, defect or irregularity in the order upholding jurisdiction shall be treated as one of the ground of objection in the memoran dum of appeal as if it had been included in such memorandum; (3) in all cases, where a preliminary issue framed under section 9A has been decided, holding that the Court has no jurisdiction to entertain the suit, and a challenge to such decision is pending before an appellate or revisional Court, on the date of commencement of the Amendment Act, such appellate or revisional proceedings shall continue as if the Amendment Act has not been enacted and section 9A has not been deleted : Provided that, in case th e appellate or revisional Court, while partly allowing such appeal or revision, remands the matter to the trial Court for reconsideration of the preliminary issue so framed under section 9A, upon receipt of these proceedings by the trial Cou rt, all the provisions of the principal Act shall apply ; (4) in all cases, where an order granting an ad -interim relief has been passed under sub -section ( 2) of section 9A prior to its deletion, such order shall be deemed to be an ad -interim order made u nder Order XXXIX of the principal Act and the Court shall, at the time of deciding the application in which such an order is made, either confirm or vacate or modify such order. [Vide Maharashtra Act 61 of 2018, sec. 3.] Maharashtra. In section 3 of the Code of Civil Procedure (Maharashtra Amendment) Act, 2018, for clause ( 1), the following clause shall be substituted and shall be deemed to have been substituted with effect from 27th June 2018, being the date of commencement of the said Act, namely : (1) where consideration of a preliminary issue framed under section 9A is pending on the date of commencement of the Code of Civil Procedure (Maharashtra Amendment) Act, 2018 (hereinafter, in this section, referred to as the Amendment Act), the said issue shall be decided and disposed of by the Court under section 9A, as if the said section 9A has not been deleted;. [Vide Maharashtra Act 72 of 2018, s. 2 (w.e.f. 27 -6-2018.)] 10. Stay of suit. No Court shall proceed with the trial of any suit in which the matter in issue is also directly and substantially in issue in a previously instituted suit between the same parties, or between parties under whom they or any of them claim litigating under the same title where such suit is pending in the same or any oth er Court in 1[India] have jurisdiction to grant the relief claimed, or in any Court beyond the limits of 1[India] established or continued by 2[the Central Government 3***.] and having like jurisdiction, or before 4[the Supreme Court]. Explanation. The pendency of a suit in a foreign Court does not preclude the Courts in 1[India] from trying a suit founded on the same cause of action. 11. Res judicata.No Court shall try any suit or issue in which the matter directly and substantially in issue has been dire ctly and substantially in issue in a former suit between the same parties, or between parties under whom they or any of them claim, litigating under the same title, in a Court competent to try such subsequent suit or the suit in which such issue has been s ubsequently raised, and has been heard and finally decided by such Court. 1. Subs. by Act 2 of 1951, s. 3, for the States. 2. Subs. by the A.O. 1937, for the G.G. in C. 3. The words or the Crown Representative omitted by the A.O. 1948. 4. Subs. by the A.O. 1950, for His Majesty in Council. 37 Explanation I. The expression former suit shall denote a suit which has been decided prior to a suit in question whether or not it was instituted prior thereto. Explanation II .For the purposes of this section, the competence of a Court shall be determined irrespective of any provisions as to a right of appeal from the decision of such Court. Explanation III. The matter above referred to must in the former suit have been alleged by one party and either denied or admitted, expressly or impliedly, by the other. Explanation IV.Any matter which might and ought to have been made ground of defence or attack in such former suit shall be deemed to have been a matter directly and substantial ly in issue in such suit. Explanation V.Any relief claimed in the plaint, which is not expressly granted by the decree, shall for the purposes of this section, be deemed to have been refused. Explanation VI .Where persons litigate bona fide in respect of a public right or of a private right claimed in common for themselves and others, all persons interested in such right shall, for the purposes of this section, be deemed to claim under the persons so litigating . 1[Explanation VI I.The provisions of this s ection shall apply to a proceeding for the execution of a decree and references in this section to any suit, issue or former suit shall be construed as references, respectively, to a proceeding for the execution of the decree, question arising in such proc eeding and a former proceeding for the execution of that decree. Explanation VIII. An issue heard and finally decided by a Court of limited jurisdiction, competent to decide such issue, shall operate as res judicata in a subsequent suit, notwithstanding t hat such Court of limited jurisdiction was not competent to try such subsequent suit or the suit in which such issue has been subsequently raised.] 1

limited jurisdiction was not competent to try such subsequent suit or the suit in which such issue has been subsequently raised.] 12. Bar to further suit . Where a pla intiff is precluded by rules from instituting a further suit in respect of any particular cause of action, he shall not be entitled to institute a suit in respect of such cause of action in any Court to which this Code applies. 13. When foreign judgment not conclusive. A foreign judgment shall be conclusive as to any matter t hereby directly adjudicated upon between the same parties or between parties under whom they or any of them claim litigating under the same title except (a) where it has not been pronounced by a Court of competent jurisdiction; (b) where it has not been given on the merits of the case; (c) where it appears on the face of the proceedings to be founded on an incorrect view of international law or a refusal to recognise the law of 2[India] in cases in which such law is applicable; (d) where the proceedings i n which the judgment was obtained are opposed to natural justice; (e) where it has been obtained by fraud; (f) where it sustains a claim founded on a breach of any law in force in 2[India] . 14. Presumption as to foreign judgments. The Court shall presume u pon the production of any document purporting to be a certified copy of a foreign judgment , that such judgment was pronounced by a Court of competent jurisdiction, unless the contrary appears on the record ; but such presumption may be displaced by proving want of jurisdiction. PLACE OF SUING 15. Court in which suits to be instituted. Every suit shall be instituted in the Court of the lowest grade competent to try it. 16. Suits to be instituted where subject -matter situate. Subject to the pecuniary or other limitations prescribed by any law, suits (a) for the r ecovery of immovable property with or without rent or profits , (b) for the partition of immovable property, 1. Ins. by Act 104 of 1976, s. 6 (w.e.f. 1 -2-1977). 2. Subs. by Act 2 of 1951, s. 3, for the States (w.e.f. 1 -4-1951) . 38 (c) for foreclosure , sale or redemption in the case of a mortgage of or charge upon immovab le property, (d) or the determination of any other right to or interest in immovable property, (e) for compensation for wrong to immovable property, (f) for the recovery of movable property actually under distraint or attachment, shall be instituted in the Court within the local limits of whose jurisdiction the property is situate: Provided that a suit to obtain relief respecting, or compensation for wrong to, immovable property held by or on behalf of the defendant may, where the relief sought can be entir ely obtained through his personal obedience, be instituted either in the Court within the local limits of whose jurisdiction the property is situate , or in the Court within the local limits of whose jurisdiction the defendant actually and voluntarily resid es, or carries on business, or personally works for gain. Explanation. In this section property means property situate in 1[India]. 17. Suits for immovable property situate within jurisdiction of different Courts. Where a suit is to obtain relief respec ting, or compensation for wrong to, immovable property situate within the jurisdiction of different Courts , the suit may be instituted in any Court within the local limits of whose jurisdiction any portion of the property is situate : Provided that, in res pect of the value of the subject -matter of the suit, the entire claim is cognizable by such Court. 18. Place of Institution of suit where local limits of jurisdiction of Courts ar e uncertain . (1) Where it is alleged to be uncertain within the local limits of the jurisdiction of which of two or more Courts , any immovable property is situate, any one of those Courts may, if satisfied that there is ground for the alleged uncertainty, record a statement to that effect and thereupon proceed to entertain and dispose of any suit relating to that property, and its decree in the suit shall have the same effect as if the property were situate within the local limits of its jurisdiction: Provided that the suit is one with respect to which the Court is com petent as regards the nature and value of the suit to exercise jurisdiction. (2) Where a statement has not been recorded under sub -section ( 1), and an objection is taken before an Appellate or Revisional Court that a decree or order in a suit relating to s uch property was made by a Court not having jurisdiction where the property is situate, the Appellate or Revisional Court shall not allow the objection unless in its opinion there was, at the time of the institution of the suit, no reasonable ground for un certainty as to the court having jurisdiction with respect thereto and there has been a consequent failure of justice. 19. Suits for compensation for wrongs to person or movables. Where a suit is for compensation for wrong done to the person or to movable property, if the wrong was done within the local limits of the jurisdiction of one Court and the defendant resides, or carries on business, or personally works for gain, within the local limits of the jurisdiction of another Court, the suit may be institut ed at the option of the plaintiff in either of the said Courts. Illustrations (a) A, residing in Delhi, beats B in Calcutta. B may sue A either in Calcutta or in Delhi. (b) A, residing in Delhi, publishes in Calcutta statements defamatory of B. B may sue A either in Calcutta or in Delhi. 20. Other suits to be instituted where defendants reside or cause of action arises. Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction (a) the def endant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or (b) any of the defendants, where there are more than on e, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided 1. Subs. by Act 2 of 1 951, s. 3 , for the States (w.e.f. 1 -4-1951). 39 that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on busi ness, or personally works for gain, as aforesaid, acquiesce in such institution; or (c) The cause of action, wholly or in part, arises. 1* * * * * 2[Explanation ].A corporation shall be deemed to carry on business at its sole or principal office in 3[India] or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place. Illustrations (a) A is a tradesman in Calcutta, B carries on business in Delhi. B, by his agent in Calcutta, buys goods of A and requests A to deliver them to the East Indian Railway Company. A delivers the goods accordingly in Calcutta. A may sue B for the price of the goods either in Calcutta, where the cause of action has arisen, or in Delhi, where B carries on business. (b) A resi des at Simla, B at Calcutta and C at Delhi. A, B and C being together at Benaras, B and C make a joint promissory note payable on demand, and deliver it to A. A may sue B and C at Benaras, where the cause of action arose. He may also sue them at Calcutta, where B resides, or at Delhi, where C resides but in each of these cases, if the non -resident defendant objects , the suit cannot proceed without the leave of the Court. 21. Objections to jurisdiction. 4[(1)] No objection as to the place of suing shall be allowed by any Appellate or Revisional Court unless such objection was taken in the Court of first instance at the earliest possible opportunity and in all cases where issues are settled at or before such settlement, and unless there has been a consequent failure of justice. 5[(2) No objection as to the competence of a Court with reference to the pecuniary limits of its jurisdiction shall be allowed by any Appellate or Revisional Court unless such objection was taken in the Court of first instance at the ea rliest possible opportunity, and, in all cases where issues are settled, at or before such settlement , and unless there has been a consequent failure of justice. (3) No objection as to the competence of the executing Court with reference to the local limit s of its jurisdiction shall be allowed by any Appellate or Revisional Court unless such objection was taken in the executing Court at the earliest possible opportunity, and unless there has been a consequent failure of justice.] 6[21A. Bar on suit to set a side decree on objection as to place of suing. No suit shall lie challenging the validity of a decree passed in a former suit between the same parties, or between the parties under whom they or any of them claim, litigating under the same title, on any gr ound based on an objection as to the place of suing. Explanation. The expression former suit means a suit which has been decided prior to the decision in the suit in which the validity of the decree is questioned, whether or not the previously decided su it was instituted prior to the suit in which the validity of such decree is questioned.] 22. Power to transfer suits which may be instituted in more than one Court. Where a suit may be instituted in any one of two or more Courts and is instituted in one of such Courts, any defendant, after notice to the other parties, may, at the earliest possible opportunity and in all cases where issues are settled at or before such settlement, apply to have the suit transferred to another Court, and the Court to which su ch application is made, after considering the objections of the other parties (if any), shall determine in which of the several Courts having jurisdiction the suit shall proceed. 1. Explanation 1 omitted by Act 104 of 1976, s. 7 (w.e.f. 1 -2-1977). 2. Subs. by s. 7 , ibid., for Explanation II (w.e.f. 1 -2-1977). 3. Subs. by Act 2 of 1951, s. 3 , for the States (w.e.f. 1 -4-1951). 4. S. 21 renumbered as sub -section ( 1) by Act 104 of 1976, s. 8 (w.e.f. 1 -2-1977). 5. Ins. by s. 8, ibid. (w.e.f. 1 -2-1977). 6. Ins . by s. 9, ibid. (w.e.f. 1 -2-1977). 40 23. To what Court application lies. (I) Where the several Courts having juris diction are subordinate to the same Appellate Court, an application under section 22 shall be made to the Appellate Court. (2) Where such Courts are subordinate to different Appellate Courts but to the same High Court, the application shall be made to the said High Court. (3) Where such Courts are subordinate to different High Courts, the application shall be made to the High Court within the local limits of whose jurisdiction the Court in which the suit is brought is situate. 24. General power of transfer and withdrawal. (1) On the application of any of the parties and after notice to the parties and after hearing such of them as desired to be heard, or of its own motion without such notice, the High Court or the District Court may at any stage (a) trans fer any suit, appeal or other proceeding pending before it for trial or disposal to any Court subordinate to it and competent to try or dispose of the same, or (b) withdraw any suit, appeal or other proceeding pending in any Court subordinate to it, and (i) try or dispose of the same; or (ii) transfer the same for trial or disposal to any Court subordinate to it and competent to try or dispose of the same; or (iii) retransfer the same for trial or disposal to the Court from which it was withdrawn. (2) Where any suit or proceeding has been transferred or withdrawn under sub -section (1), the Court which 1[is thereafter to try or dispose of such suit or proceeding] may, subject to any special directions in the case of an order of transfer, either retry it or proceed from the point at which it was transferred or withdrawn. 2[(3) For the purposes of this section, (a) Courts of Additional and Assistant Judges shall be deemed to be subordinate to the District Court; (b) proceeding includes a proceeding for the execution of a decree or order.] (4) The Court trying any suit transferred or withdrawn under this section from a Court of Small Causes shall, for the purposes of such suit, be deemed to be a Court of Small Causes. 3[(5) A suit or proceeding may be transf erred under this section from a Court which has no jurisdiction to try it.] 4[25. Power of Supreme Court to transfer suits, etc .(1) On the application of a party, and after notice to the parties , and after hearing such of them as desire to be heard, the S upreme Court may, at any stage, if satisfied that an order under this section is expedient for the ends of justice, direct that any suit, appeal or other proceeding be transferred from a High Court or other Civil Court in one State to a High Court or other Civil Court in an y other State. (2) Every application under this section shall be made by a motion which shall be supported by an affidavit. (3) The Court to which such suit, appeal or other proceeding is transferred shall, subject to any special directio ns in the order of transfer, either retry it or proceed from the stage at which it was transferred to it. (4) In dismissing any application under this section, the Supreme Court may, if it is of opinion that the application was frivolous or vexatious, orde r the applicant to pay by way of compensation to any person who has opposed the application such sum, not exceeding two thousand rupees, as it considers appropriate in the circumstances of the case. (5) The law applicable to any suit, appeal or other proce eding transferred under this section shall be the law which the Court in which the suit, appeal or other proceeding was originally instituted ought to have applied to such suit , appeal or proceeding.] 1. Subs. by Act 104 of 1976, s. 10, for thereafter tries such suit (w.e.f. 1 -2-1977). 2. Sub

10, for thereafter tries such suit (w.e.f. 1 -2-1977). 2. Sub s. by s. 10, ibid., for sub -section ( 3) (w.e.f. 1 -2-1977). 3. Ins. by s. 10, ibid. (w.e.f. 1 -2-1977). 4. Subs. by s. 11, ibid., for s. 25 (w.e.f. 1 -2-1977). 41 INSTITUTION OF SUITS 26. Institutio n of suits . 1[(1)] Every suit shall be instituted by the presentation of a plaint or in such other manner as may be prescribed. 2[(2) In every plaint, facts shall be prove d by affidavit.] *[Provided that such an affidavit shall be in the form and manner as prescribed unde r Order VI of Rule 15A.] SUMMONS AND DISCOVERY 27. Summons to de fendants. Where a suit has been duly instituted, a summons may be issued to the defendant to appear and answer the claim and may be served in manner prescribed 3[on such day not beyond thirty days from date of the institution of the suit.] 28. Service of summons where defendant resides in another State. (1) A summons may be sent for service in another State to such Court and in such manner as may be prescribed by rules in force in that State. (2) The Court to which such summons is sent shall, upon receipt thereof, proceed as if it had been issued by such Court and shall then return the summons to the Court of issue together with the record (if any) of its proceedings with regard thereto. 4[(3) Where the language of the summons sent for service in another State is different from the language of the record referred to in sub -section (2), a translation of the record, (a) in Hindi, where the language of the Court issuing the summons is Hindi, or (b) in Hindi or English where the language of such record is other than Hindi or English, shall also be sent together with the record sent under that sub -section.] 5[29. Service of foreign summonses. Summonses and other processes issued by (a) any Ci vil or Revenue Court established in any part of India to which the provisions of this Code do not extend, or (b) any Civil or Revenue Court established or continued by the authority of the Central Government outside India, or (c) any other Civil or Revenue Court outside India to which the Central Government has, by notification in the Official Gazette, declared the provisions of this section to apply, may be sent to the Courts in the territories to which this Code extends, and served as if they were summons es issued by such Courts.] 30. Power to order discovery and the like. Subject to such conditions and limitations as may be prescribed, the Court may, at any time, either of its own motion or on the application of any party, (a) make such orders as may be necessary or reasonable in all matters relating to the delivery and answering of interrogatories, the admission of documents and facts, and the discovery, inspection, production, impounding and return of documents or other material objects producible as e vidence; (b) issue summonses to persons whose attendance is required either to give evidence or to produce documents or such other objects as aforesaid; (c) order any fact to be proved by affidavit. 31. Summons to witness. The provisions in sections 27, 28 and 29 shall apply to summonses to give evidence or to produce documents or other material objects. 32. Penalty for default. The Court may compel the attendance of any person to whom a summons has been issued under section 30 and for that purpose may (a) issue a warrant for his arrest; (b) attach and sell his property; 1. S. 26 renumbered as sub -section ( 1) by Act 46 of 1999, s. 2 (w.e.f. 1 -7-2002). 2. Ins. by s. 3, ibid., (w.e.f. 1 -7-2002). 3. Ins. by s. 3, ibid., (w.e.f. 1 -7-2002). 4. Ins. by Act 104 of 1976, s. 12 (w.e.f. 1 -5-1977). 5. Subs. by Act 2 of 1951, s. 6, for s ection 29 (w.e.f. 1 -4-1951). * Shall be applicable to commercial disputes of a specified val ue by Act 4 of 2016, s. 16 and the Schedule (w.e.f. 23 -10-2015). 42 (c) impose a fine upon him 1[not exceeding five thousand rupees]; (d) order him to furnish security for his appearance and in default commit him to the civil prison. JUDGMENT AND DECREE 33. Judgment and decree. The Court, after the case has been heard, shall pronounce judgment, and on such judgment a decree shall follow. INTEREST 34. Interest. (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, 2[with further interest at such rate not exceeding six per cent. per annum as the Court deems reasonable on such principal sum], from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit: 3[Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent. per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions. Explanation I.In this sub-section, nationalised bank means a corresponding new bank as defined in the Banking Companies (Acquisition and Tr ansfer of Undertakings) Act, 1970 (5 of 1970). Explanation II.For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability.] (2) Where such a decr ee is silent with respect to the payment of further interest 4[on such principal sum] from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefor shall not lie. COSTS 35. Costs. (1) Subject to such conditions and limitations as may be prescribed, and to the provisions of any law for the time being in force, the costs of an incident to all suits shall be in the discretion of the Court, and the Court shall have full power to determine by whom or out of what property and to what extent such costs are to be paid, and to give all necessary directions for the purposes aforesaid. The fact that the Court has no jurisdiction to try the suit shall be no bar to the exerc ise of such powers. (2) Where the Court directs that any costs shall not follow the event, the Court shall state its reasons in writing. 5* * * * * *[35. Costs. (1) In relation to any Commercial dispute, the Court, notwithstanding anything contai ned in any other law for the time being in force or Rule, has the discretion to determine: (a) whether costs are payable by one party to another; (b) the quantum of those costs; and (c) when they are to be paid. 1. Subs. by Act 46 of 1999, s. 4, for not exceeding five hundred rupees (w.e.f. 1 -7-2002). ` 2. Subs. by Act 66 of 1956, s. 2, for certain words (w.e.f. 1 -1-1957). 3. Ins. by Act 104 of 197 6, s. 13 (w.e.f. 1 -7-1977). 4. Subs. by Act 66 of 1956, s. 2, for on such aggregate sum as aforesaid (w.e.f. 1 -1-1957). 5. Sub -section ( 3) omitted by Act 66 of 1956, s. 3 (w.e.f. 1 -1-1957). *. Shall be applicable to commercial disputes of a specified val ue by Act 4 of 2016, s. 16 and the Schedule (w.e.f. 23 -10-2015). 43 Explanatio n.For the purpose of clause ( a), the expression costs shall mean reasonable costs relating to (i) the fees and expenses of the witnesses incurred; (ii) legal fees and expenses incurred; (iii) any other expenses incurred in connection with the proceedings. (2) If the Court decides to make an order for payment of costs, the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party: Provided that the Court may make an order deviating from the general rule for reasons to be recorded in writing. Illustration The Plaintiff, in his suit, seeks a money decree for breach of contract, and damages. The Court holds that the Plaintiff is entitled to the money decree. However, it returns a finding that the claim for damages is frivolous and vexatious. In such circumstances the Court may impose costs on the Plaintiff, despite the Plaintiff being the successful party, for having raised frivolous claims for damages. (3) In making an order for the payment of costs, the Court shall have regard to the followin g circumstances, including (a) the conduct of the parties; (b) whether a party has succeeded on part of its case, even if that party has not been wholly successful; (c) whether the party had made a frivolous counterclaim leading to delay in the disposal o f the case; (d) whether any reasonable offer to settle is made by a party and unreasonably refused by the other party; and (e) whether the party had made a frivolous claim and instituted a vexatious proceeding wasting the time of the Court. (4) The orders which the Court may make under this provision include an order that a party must pay (a) a proportion of another partys costs; (b) a stated amount in respect of another partys costs; (c) costs from or until a certain date; (d) costs incurred befor e proceedings have begun; (e) costs relating to particular steps taken in the proceedings; (f) costs relating to a distinct part of the proceedings; and (g) interest on costs from or until a certain date.] STATE AMENDMENTS Jammu and Kashmir and Ladakh (U Ts). In Section 35, in sub -section (1) omit Commercial. [Vide the Jammu and Kashmir Reorgani sation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18 -3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptati on of Central Laws ) Order, 2020, Notification No. S.O . 3774(E), dated (23-10-2020)]. 44 1[35A. Co mpensatory costs in respect of false or vexatious claims or defences. (1) If in any suit or other proceedings 2[including an execution proceeding but 3[excludin g an appeal or a revision] any party objects to the claim or defence on the ground that the claim or defence or any part of it is, as against the objector, false or vexatious to the knowledge of the party by whom it ha s been put forward, and if thereafter, as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part, the Court, 4[if it so thinks fit], may, after recording its reasons for holding such claim or defence to be false or vexatious, make an order for the payment to the object or by the party by whom such claim or defence has been put forward, of cost by way of compensation. *[(2) No Court shall make any such order for the payment of an amount exceeding 5[three thousand rupees] or exceeding the limits of i ts pecuniary jurisdiction, whichever amount is less: Provided that where the pecuniary limits of the jurisdiction of any Court exercising the jurisdiction of a Court of Small Causes under the Provincial Small Cause Courts Act, 1887 (9 of 1887), 6[or under a corresponding law in force in 7[any part of India to which the said Act does not extend] and not being a Court constituted 8[under such Act or law], are less than two hundred and fifty rupees, the High Court may empower such Court to award as costs unde r this section any amount not exceeding two hundred and fifty rupees and not exceeding those limits by more than one hundred rupees : Provided, further, that the High Court may limit the amount which any Court or class of Courts is empowered to award as co sts under this section. ] (3) No person against whom an order has been made under this section shall, by reason thereof, be exempted from any criminal liability in respect of any claim or defence made by him. (4) The amount of any compensation awarded unde r this section in respect of a false or vexatious claim or defence shall be taken into account in any subsequent suit for damages or compensation in respect of such claim or defence.] STATE AMENDMENTS Jammu and Kashmir and Ladakh (UTs) . In Section 35A, o mit sub -section (2). [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18 -3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws ) Order, 2020, Notificati on No. S.O . 3774(E), dated (23-10-2020 )]. Uttar Pradesh Amendment of section 35-A of Act V of 1908. In the Code of Civil Procedure, 1908 (hereinafter in this Chapter referred to as the principal Act) in section 35 -A, after sub- section (1), the following sub-section shall be inserted , namely

in section 35 -A, after sub- section (1), the following sub-section shall be inserted , namely : Revision .(1-A) The provisions of sub -section (1) shall mutatis mutandis apply to an appeal where the appellate court confirms the decision of the trial court and the trial court has not awarded, or has awarded insufficient, compensatory cost under that sub- section. [Vide Uttar Pradesh Act 57 of 1976, s. 2] 1. Section 35A ins. by Act 9 of 1922, s. 2, which, under section 1(2) thereof may be brought into force in any State by the State Government on any specified date. It has been so brought int o force in Bombay, Bengal, U.P., Punjab, Bihar, C.P., Assam, Orissa and Madras. 2. Subs. by Act 66 of 1956, s. 4, for not being an appeal (w.e.f. 1 -2-1957) . 3. Subs. by Act 104 of 1976, s. 14, for excluding an appeal (w.e.f. 1 -2-1977). 4. Subs. by Ac t 66 of 1956, s. 4, for certain words (w.e.f. 1 -2-1957) . *. Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Schedule (w.e.f. 23 -10-2015). 5. Subs. by Act 104 of 1976, s. 14, for one thousand rupees (w.e.f. 1-2-1977). 6. Ins. by Act 2 of 1951, s. 7. 7. Subs. by the Adaptation of Laws (No. 2) Order, 1956, for a Part B State. 8. Subs. by Act 2 of 1951, s. 7, for under that Act (w.e.f. 1 -4-1951) . 45 Uttar Pradesh Section 35-A or Schedule of the Act .(1) For the existing sub -section (1), the following shall be substituted ; (1) If in any suit or other proceeding, including proceedings in execution, but not being an appeal or revision, the court finds that the claim or defense or any part thereof is false or vexatious to the knowledge of the party by whom it has been put forward and if such claim or defense or such part is disallowed abandoned or withdrawn in whole or in part, the court may, after recording its reasons for holding such claim or defense to be false or vexatious, make an order for the payment to the successful party of costs by way of compensation irrespective of the decision on other issues in the case. [Vide Uttar Pradesh Act XXIV of 1954, s. 3] 1[35B. Costs for causing delay. (1) If, on any date fixed for the hearing of a suit or for taking any step therein, a part y to the suit (a) fails to take the step which he was required by or under this Code to take on that date, or (b) obtains an adjournment for taking such step or for producing evidence or on any other ground, the Court may, for reasons to be recorded, mak e an order requiring such party to pay to the other party such costs as would, in the opinion of the Court, be reasonably sufficient to reimburse the other party in respect of the expenses incurred by him in attending the Court on that date, and payment of such costs, on the date next following the date of such order, shall be a condition precedent to the further prosecution of (a) the suit by the plaintiff, where the plaintiff was ordered to pay such costs, (b) the defence by the defendant, where the def endent was ordered to pay such costs. Explanation. Where separate defences have been raised by the defendant or groups of defendants, payment of such costs shall be a condition precedent to the further prosecution of the defence by such defendants or group s of defendants as have been ordered by the Court to pay such costs. (2) The costs, ordered to be paid under sub -section (1), shall not, if paid, be included in the costs awarded in the decree passed in the suit; but, if such costs are not paid, a separate order shall be drawn up indicating the amount of such costs and the names and addresses of the persons by whom such costs are payable and the order so drawn up shall be executable against such persons. ] PART II EXECUTION GENERAL 2[36. Application to or ders. The provisions of this Code relating to the execution of decrees (including provisions relating to payment under a decree) shall, so far as they are applicable, be deemed to apply to the execution of orders (including payment under an order).] 37. De finition of Court which passed a decree. The expression Court which passed a decree, or words to that effect, shall, in relation to the execution of decrees , unless there is anything repugnant in the subject or context, be deemed to include, (a) where the decree to be executed has been passed in the exercise of appellate jurisdiction, the Court of first instance, and 1. Ins. by Act 104 of 1976, s. 15 (w.e.f. 1 -2-1977). 2. Subs. by Act 104 of 1976 , s. 16, for s ection 36 (w.e.f. 1 -2-1977). 46 (b) where the Court of first instance has ceased to exist or to have jurisdiction to execute it, the Court which, if the suit wherein the decree was passed was instituted at the time of making the application for the execution of the decree, would have jurisdiction to try such suit. 1[Explanation. The Court of first instance does not cease to have jurisdiction to execute a decree merely on the ground that after the institution of the suit wherein the decree was passed or after the passing of the decree, any area has been transferred from the jurisdiction of that Court to the jurisdiction of any other Court ; but, in every such case, such othe r Court shall also have jurisdiction to execute the decree, if at the time of making the application for execution of the decree it would have jurisdiction to try the said suit.] COURTS BY WHICH DECREES MAY BE EXECUTED 38. Court by which decree may be exec uted. A decree may be executed either by the Court which passed it, or by the Court to which it is sent for execution. 39. Transfer of decree. (1) The Court which passed a decree may, on the application of the decree - holder, send it for execution to anothe r Court 2[of competent jurisdiction], (a) if the person against whom the decree is passed actually and voluntarily resides or carries on business, or personally works for gain, within the local limits of the jurisdiction of such other Court, or (b) if such person has not property within the local limits of the jurisdiction of the Court which passed the decree sufficient to satisfy such decree and has property within the local limits of the jurisdiction of such other Court, or (c) if the decree directs th e sale or delivery of immovable property situate outside the local limits of the jurisdiction of the Court which passed it, or (d) if the Court which passed the decree considers for any other reason, which it shall record in writing, that the decree should be executed by such other Court. (2) The Court which passed a decree may of its own motion send it for execution to any subordinate Court of competent jurisdiction. 3[(3) For the purposes of this section, a Court shall be deemed to be a Court of competent jurisdiction if, at the time of making the application for the transfer of decree to it, such Court would have jurisdiction to try the suit in which such decree was passed.] 4[(4) Nothing in this section shall be deemed to authorise the Court which passed a decree to execute such decree against any person or property outside the local limits of its jurisdiction.] STATE AMENDMENT Uttar Pradesh Amendment of section 39 of Act no. 5 of 1908 . In section 39 of the Code of Civil Procedure, 1908, hereinafter referred to as the said Code, for sub-section (3), the following sub- section shall be substituted, namely : (3) For the purposes of this section, a Court shall be deemed to be a Court of competent jurisdiction of the amount or value of the subject -matte r of the suit wherein the decree was passed does not exceed the pecuniary limits, if any, of its ordinary jurisdiction at the time of making the application for the transfer of decree to it, notwithstanding that it had otherwise no jurisdiction to try the suit. [Vide Uttar Pradesh Act 31 of 1978, s. 2] 40. Transfer of decree to Court in another State. Where a decree is sent for execution in another State, it shall be sent to such Court and executed in such manner as may be prescribed by rules in fo rce in that State. 1. Ins. by Act 104 of 1976 , s. 17 (w.e.f. 1 -2-1977). 2. Ins. by s. 18, ibid. ( w.e.f. 1 -2-1977). 3. Ins. by Act 104 of 1976, s. 18, (w.e.f. 1 -2-1977). 4. Ins. by Act 22 of 2002, s. 2 (w.e.f. 1 -7-2002). 47 41. Result of execution proceedings to be certified. The Court to which a decree is sent for execution shall certify to the Court which passed it the fact of such execution, or where the former Court fails to execute the same the circums tances attending such failure. 42. Powers of Court in executing transferred decree. 1[(1)] The Court executing a decree sent to it shall have the same powers in executing such decree as if it had been passed by itself. All persons is disobeying or obstructing the execution of the decree shall be punishable by such Court in the same manner as if it had passed the decree. And its order in executing such decree shall be subject to the same rules in respect of appeal as if the decree had passed by it self. 2[(2) Without prejudice to the generality of the provisions of sub -section (1), the powers of the Court under that sub -section shall include the following powers of the Court which passed the decree, namely: (a) power to send the decree for executi on to another Court under section 39; (b) power to execute the decree against the legal representative of the deceased judgment -debtor under section 50; (c) power to order attachment of a decree. (3) A Court passing an order in exercise of the powers speci fied in sub -section (2) shall send a copy thereof to the Court which passed the decree. (4) Nothing in this section shall be deemed to confer on the Court to which a decree is sent for execution any of the following powers, namely: (a) power to order exe cution at the instance of the transferee of the decree; (b) in the case of a decree passed against a firm, power to grant leave to execute such decree against any person, other than such a person as is referred to in clause (b), or clause (c) of sub-rule ( 1) of rule 50 of Order XXI. ] STATE AMENDMENT Uttar Pradesh Substitution of new section for section 42 of Act V of 1908. For section 42 of the Code of Civil Procedure, 1908, as amended in its application to Uttar Pradesh (hereinafter referr ed to as the said Code) the following section shall be substituted and be deemed to have been substituted with affect from December 2, 1968, namely : 42. Power of court in executing transferred decree. (1) The Court executing a decree sent to it shall have the same powers in executing such decree as if it had been passed by itself. All persons disobeying or obstructing the execution of the decree shall be punishable by such Court in the same manner as if it had passed the decree, and its order in executing such decree shall be subject to the same rules in respect of appeal as if the decree had been passed by itself. (2) Without prejudice to the generality of the provisions of sub - section (1), the powers of the Court under that sub-section shall include the following powers of the Court which passed the decree, namely (a) power to send the decree for execution to another Court under section 39 ; (b) power to execute the decree against the legal representative of the deceased judgment -debtor under section 50 ; (c) power to order attachment of a decree; (d) power to decide any question relating to the bar of limitation to the executability of the decree ; (e) power to record payment or adjustment under rule 2 of Order XXI; 1. S. 42 renumbered as sub -section ( 1) by Act 104 of 1976, s. 19 (w.e.f. 1 -2-1977). 2. Ins. by s. 19, ibid., (w.e.f. 1 -2-1977). 48 (f) power to order stay of execution under rule 29 of Order XXI; (g) in the case of a decree passed against a firm, power to grant leave to execute such decree against any person other than a person as is referred to in clause (b) or clause (c) of sub -rule (1) of rule 5 0 of Order XXI. (3) A Court passing an order in exercise of the powers specified in sub-section (2) shall send a copy thereof to the Court which passed the decree. (4) Nothing in this section

(2) shall send a copy thereof to the Court which passed the decree. (4) Nothing in this section shall be deemed to confer on the Court to which a decree is sent for execution, the power to order execution at the instance of the transferee of a decree. [Vide Uttar Pradesh Act 14 of 1970, s. 2] 1[43. Execution of decrees passed by Civil Courts in places to which this Code does not extend. Any decree passed by any Civil Court established in any part of India to which the provisions of this Code do not extend, or by any Court established or continued by the authority of the Central Government outside India, may, if it cannot be executed within the jurisdiction of the Court by which it was passed, be executed in the manner herein provided within the jurisdiction of any Court in the territories to which this Code extends.] 2[44. Execution of decree s passed by Revenue Courts in places to which this Code does not extend. The State Government may, by notific ation in the Official Gazette, declare that the decrees of any Revenue Court in any part of India to which the provisions of this Code do not extend, or any class of such decrees, may be executed in the State as if they had been passed by Courts in that State.] 3[44A. Execution of decrees passed by Courts in reciprocating territory. (1) Where a certified copy of a decree of any of the superior Courts of 4*** any reciprocating territory has been filed in a District Court, the decree may be executed in 5[India] as if it had been passed by the District Court. (2) Together with the certified copy of the decree shall be filed a certificate from such superior Court stating the extent, if any, to which the decree has been satisfied or adjusted and such certificate shall, for the purposes of proceedings under this section, be conclusive proof of the extent of such satisfaction or adjustment. (3) The provisions of section 47 shall as from the filing of the certified copy of the decree apply to the proceedings of a District Court executing a decree under this section, and the District Court shall refuse execution of any such decree, if it is shown to the satisfaction of the Court that the decree falls within any of the excepti ons specified in clauses (a) to (f) of section 13. 6[Explanation 1. Reciprocating territory means any country or territory outside India which the Central Government may, by notification in the Official Gazette, declare to be a reciprocating territory f or the purposes of this section; and superior Courts , with reference to any such territory, means such Courts as may be specified in the said notification. Explanation 2. Decree with reference to a superior Court means any decree or judgment of such Court under which a sum of money is payable, not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty, but shall in no case include an arbitration award, even if such an award is enforceable as a decree or judgment.]] 1. Subs. by Act 2 of 1951, s. 8, for s ection 43 (w.e.f. 1 -4-1951) . 2. Subs. by Act 2 of 1951, s. 9, for s ection 44 (w.e. f. 1-4-1951). 3. Ins. by Act 8 of 1937, s. 2. 4. The words the United Kingdom or omitted by Act 71 of 1952, s. 2. 5. Subs. by Act 2 of 1951, s. 3, for the States (w.e.f. 1 -4-1951) . 6. Subs. by Act 71 of 1952, s. 2, for Explanations 1 to 3. 49 1[45. Execution of decrees outside India. So much of the foregoing sections of this Part as empowers a Court to send a decree for execution to another Court shall be construed as empowering a Court in any State to send a decree for execution to any Court established 2*** by the authority of the Central Government 3[outside India] to which the State Government has by notification in the Official Gazette declared this section to apply.] 46. Precepts. (1) Upon the application of the de cree-holder the Court which passed the decree may , whenever it thinks fit, issue a precept to any other Court which would be competent to execute such decree to attach any property belonging to the judgment -debtor and specified in the precept. (2) The Cour t to which a precept is sent shall proceed to attach the property in the manner prescribed in regard to the attachment of property in execution of a decree: Provided that no attachment under a precept shall continue for more than two months unless the period of attachment is extended by an order of the Court which passed the decree or unless before the determination of such attachment the decree has been transferred to the Court by which the attachment has been made and the decree -holder has applied for an order for the sale of such property. QUESTIONS TO BE DETERMINED BY COURT EXECUTING DECREE 47. Questions to be determined by the Court executing decree. (1) All questions arising between the parties to the suit in which the decree was passed, or their repre sentatives, and relating to the execution, discharge or satisfaction of the decree, shall be determined by the Court executing the decree and not by a separate suit. 4* * * * * (3) Where a question arises as to whether any person is or is not the representative of a party, such question shall, for the purposes of this section, be determined by the Court. 5[Explanation I.For the purposes of this section, a plaintiff whose suit has been dismissed and a defendant against whom a suit has been dism issed are parties to the suit. Explanation II.(a) For the purposes of this section, a purchaser of property at a sale in execution of a decree shall be deemed to be a party to the suit in which the decree is passed; and (b) all questions relating to the d elivery of possession of such property to such purchaser or his representative shall be deemed to be questions relating to the execution, discharge or satisfaction of the decree within the meaning of this section.] STATE AMENDMENT Uttar Pradesh Amendment of section 47. In section 47 of the principal Act, Explanation II inserted by the U. P. Civil Laws (Reforms and Amendment) Act, 1954, shall be omitted. [Vide Uttar Pradesh Act 57 of 1976, s. 3] LIMIT OF TIME FOR EXECUTION 48. [Execution barred in certain cases. ] Rep. by the Limitation Act, 1963 (36 of 1963), s. 28 (w.e.f. 1-1-1964). 1. Subs. by the A.O. 1937, for s ection 45. 2. The words or continued omitted by the A.O. 1948. 3. Subs. by the A.O. 1950, for in any Indian State. 4. Sub -section ( 2) omitted by Act 104 of 1976, s. 20 (w.e.f. 1 -2-1977). 5. Subs. by s. 20, ibid. for the Explanati on (w.e.f. 1 -2-1977). 50 STATE AMENDMENT Rajasthan Insertion of new section 48 A. - After section 48 of the Code of Civil Procedure, 1908 (Central Act V of 1908), in its application thereof to the S tate of Rajasthan, the following new section shall be, and be deemed always to have been inserted, namely: -- "48-A- Varied application of section 48. - For the purposes of the application of section 48 to the State of Rajasthan; - (i) a decree, made before t he twenty -fifth day of January, 1950, in those parts of Rajasthan where a corresponding provision did not then exist, shall, unless it shall have becomr time -barred or otherwise infructuous before the said day in accordance with any law then prevailing in those parts, be deemed to have been made on the said day, and (ii) Where a decree might have been made before the twenty -fifth day of January, 1950 in those parts of Rajasthan where a corresponding provision then existed, with a period longer than twelve y ears provided therein such longer period or the period of twelve years form the said day whichever expires first shall be the period after which, according to section 48, no order for execution shall be made". [Vide Rajasthan Act XX of 1952, s. 2] TRANSFER EES AND LEGAL REPRESENTATIVES 49. Transferee. Every transferee of a decree shall hold the same subject to the equities (if any) which the judgment -debtor might have enforced against the original decree -holder. 50. Legal representative. (1) Where a judgment -debtor dies before the decree has been fully satisfied, the holder of the decree may apply to the Court which passed it to execute the same against the legal representative of the deceased. (2) Where the decree is executed against such legal representativ e, he shall be liable only to the extent of the property of the deceased which has come to his hands and has not been duly disposed of; and, for the purpose of ascertaining such liability, the Court executing the decree may, of its own motion or on the application of the decree -holder, compel such legal representative to produce such accounts as it thinks fit. PROCEDURE IN EXECUTION 51. Powers of Court to enforce execution. Subject to such conditions and limitations as may be prescribed, the Court may, on t he application of the decree -holder, order execution of the decree (a) by delivery of any property specifically decreed; (b) by attachment and sale or by the sale without attachment of any property; (c) by arrest and detention in prison 1[for such period not exceeding the period specified in section 58, where arrest and detention is permissible under that section] ; (d) by appointing a receiver; or (e) in such other manner as the nature of the relief granted may require: 2[Provided that, where the decree i s for the payment of money, execution by detention in prison shall not be ordered unless, after giving the judgment -debtor an opportunity of showing cause why he should not be committed to prison, the Court, for reasons recorded in writing, is satisfied (a) that the judgment -debtor, with the object or effect of obstructing or delaying the execution of the decree, (i) is likely to abscond or leave the local limits of the jurisdiction of the Court, or (ii) has, after the institution of the suit in which t he decree was passed, dishonestly transferred, concealed, or removed any part of his property, or committed any other act of bad faith in relation to his property, or (b) that the judgment -debtor has, or has had since the date of the decree , the means to p ay the amount of the decree or some substantial part thereof and refuses or neglects or has refused or neglected to pay the same, or (c) that the decree is for a sum for which the judgment -debtor was bound in a fiduciary capacity to account. Explanation. In the calculation of the means of the judgment -debtor for the purposes of clause (b), there shall be left out of account any property which, by or under any law or custom having the force of law for the time being in force, is exempt from attachment in ex ecution of the decree.] 1. Ins. by Act 104 of 1976, s. 21 (w.e.f. 1 -2-1977). 2. Ins. by Act 21 of 1936, s. 2. 51 52. Enfor cement of decree against legal representative. (1) Where a decree is passed against a party as the legal representative of a deceased person, and the decree is for the payment of money out of the property of the deceased, i t may be executed by the attachment and sale of any such property. (2) Where no such property remains in the possession of the judgment -debtor and he fails to satisfy the Court that he has duly applied such property of the deceased as is proved to have com e into his possession, the decree may be executed against the judgment -debtor to the extent of the property in respect of which he has failed so to satisfy the Court in the same manner as if the decree had been against him personally. 53. Liability of ance stral property. For the purposes of section 50 and section 52, property in the hands of a son or other descendant which is liable under Hindu law for the payment of the debt of a deceased ancestor, in respect of which a decree has been passed, shall be dee med to be property of the deceased which has come to the hands of the son or other descendant as his legal representative. 54. Partition of estate or separation of share. Where the decree is for the partition of an undivided estate assessed to the payment of revenue to the Government, or for the separate possession of a share of such an estate, the partition of the estate or the separation of the share shall be made by the Collector or any gazetted subordinate of the Collector deputed by him in this behalf , in accordance with the law (if any) for the time being in force relating to the partition , or the separate possession of shares, of such estates. STATE AMENDMENT Karnataka. For Section 54, the following Section shall be substituted, namely. 54. Partit ion of estate or separation of share. Where the decree is for the partition of an undivided estate assessed to the payment of revenue to the Government , or for the separate possession of a share of such an estate, the partition of the estate or the separat ion of the share of such an estate shall be made by the Court in accordance with the law if any , for the time being in force relating to the partition or the separate possession of shares , and if necessary on the report of a revenue officer, not below the rank of Tahsildar or such other person as the Court may appoint as Commissioner in that behalf. [Vide Karnataka Act 36 of 1998, sec. 2.] ARREST AND DETENTION 55. Arrest and detention. (1) A judgment -debtor may be arrested in execution of a decree at any hour and on any day, and shall, as soon as practicable, be brought before the Court, and his detention may be in the civil prison of the district in which the Court ordering the detention is situate, or, where such civil prison does not afford suitable acco mmodation, in any other place which the State Government may

ate, or, where such civil prison does not afford suitable acco mmodation, in any other place which the State Government may appoint for the detention of persons ordered by the Courts of such district to be detained : Provided, firstly , that, for the purpose of making an arrest under this section, no dwelling -house shal l be entered after sunset and before sunrise: Provided, secondly, that no outer door of a dwelling -house shall be broken open unless such dwelling - house is in the occupancy of the judgment -debtor and he refuses or in any way prevents access thereto, but when the officer authori zed to make the arrest has duly gained access to any dwelling -house, he may break open the door of any room in which he has reason to believe the judgment -debtor is to be found : Provided, thirdly , that, if the room is in the actual oc cupancy of a woman who is not the judgment -debtor and who according to the customs of the country does not appear in public, the officer authori zed to make the arrest shall give notice to her that she is at liberty to withdraw, and, after allowing a reason able time for her to withdraw and giving her reasonable facility for withdrawing, may enter the room for the purpose of making the arrest : Provided , fourthly, that, where the decree in execution of which a judgment -debtor is arrested, is a decree for the p ayment of money and the judgment -debtor pays the amount of the decree and the costs of the arrest to the officer arresting him, such officer shall at once release him. (2) The State Gover nment may, by notification in the Official Gazette, declare that any person or class of persons whose arrest might be attended with danger or inconvenience to the public shall not be liable to arrest in execution of a decree othe rwise than in accordance with such procedure as may be prescribed by the State Government in thi s behalf. (3) Where a judgment -debtor is arrested in execution of a decree for the payment of money and brought before the Court, the Court shall inform him that he may apply to be declared an insolvent, and that he 1[may be discharged] if he has not commi tted any act of bad faith regarding the subject of the application and if he complies with the provisions of the law of insolvency for the time being in force. (4) Where a judgment -debtor expresses his intention to apply to be declared an insolvent and fur nishes security, to the satisfaction of the Court, that he will within one month so apply, and that he will appear, when called upon, in any 1. Subs. by Act 3 of 1921, s. 2 , for will be discharged. 52 proceedin g upon the application or upon the decree in execution of which he was arrested, the Court 1[may release] him from arrest, and, if he fails so to apply and to appear, the Court may either direct the security to be reali zed or commit him to the civil prison in execution of the decree. 56. Prohibition of arrest or detention of women in execution of decree for mo ney.Notwithstanding anything in this Part, the Court shall not order the arrest or detention in the civil prison of a woman in execution of a decree for the payment of money. 57. Subsistence -allowance. The State Government may fix scales, graduated accord ing to rank, race and nationality, of monthly allowances payable for the subsistence of judgment -debtors. 58. Detention and release. (1) Every person detained in the civil prison in execution of a decree shall be so detained, (a) where the decree is for the payment of a sum of money exceeding 2[ 3[five thousand rupees], for a period not exceeding three months, and,] 4[(b) where the decree is for the payment of a sum of money exceeding two thousand rupees, but not exceeding five thousand rupees, for a peri od not exceeding six weeks.] 5[(1A) For the removal of doubts, it is hereby declared that no order for detention of the judgment -debtor in civil prison in execution of a decree for the payment of money shall be made, where the total amount of the decree do es not exceed 6[two thousand rupees.] ] (2) A judgment -debtor released from detention under this section shall not merely by reason of his release be discharged from his debt, but he shall not be liable to be re -arrested under the decree in execution of whi ch he was detained in the civil prison. 59. Release on ground of illness. (1) At any time after a warrant for the arrest of a judgment -debtor has been issued the Court may cancel it on the ground of his serious illness. (2) Where a judgment -debtor has been arrested, the Court may release him if, in its opinion, he is not in a fit state of health to be detained in the civil prison. (3) Where a judgment -debtor has been committed to the civil prison, he may be released therefrom (a) by the State Government, on the ground of the existence of any infectious or contagious disease, or (b) by the committing Court, or any Court to which that Court is subordinate, on the ground of his suffering from any serious illness. (4) A judgment -debtor released under this sect ion may be re -arrested, but the period of his detention in civil prison shall not in the aggregate exceed that prescribed by section 58 . ATTACHMENT 760. Property liable to attachment and sale in execution of decree .(1) The following property is liable to attachment and sale in execution of a decree, namely, lands, houses or other buildings, goods, money, bank -notes , cheques , bills of exchange, hundis, promissory notes, Government securities, bonds or other securities for money , debts, shares in a corporat ion and, save as hereinafter mentioned, all other saleable property, movable or immovable, belonging to the judgment -debtor, or over which, or the profits of which, he has a disposing power which he may exercise for his own benefit, whether the same be hel d in the name of the judgment - debtor or by another person in trust for him or on his behalf: Provided that the following particulars shall not be liable to such attachment or sale, namely: (a) the necessary wearing -apparel, cooking vessels, beds and bedd ing of the judgment -debtor, his wife and children, and such personal ornaments as, in accordance with religious usage, cannot be parted with by any woman; (b) tools of artisans, and, where the judgment -debtor is an agriculturist, his implements of husbandr y and such cattle and seed -grain as may, in the opinion of the Court, be necessary to enable him to earn his livelihood as such , and such portion of agricultural produce or of any class of agricultural produce as may have been declared to be free from liab ility under the provisions of the next following section ; 1. Subs. by Act 3 of 1921, s. 2, for shall release. 2. Subs. by Act 104 of 1976, s. 22 , for certain words (w.e.f. 1 -2-1977). 3. Subs. by Act 46 of 1999, s. 5, one thousand rupees (w.e.f. 1 -7-2002). 4. Subs. by s. 5, ibid., by clause ( b) (w.e.f. 1 -7-2002). 5. Ins. by Act 104 of 1976, s. 22 (w.e.f. 1 -2-1977). 6. Subs. by Act 46 of 1999, s. 5, for five hundred rupees (w.e.f. 1 -7-2002). 7. For amendments to s. 60, in its application to East Punjab, see the Punjab Relief of Indebtedness Act, 1934 (Pun. Act 7 of 1934), s. 35, as amended by Pun. Acts 12 of 1940 and 6 of 1942. 53 (c) houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belonging to 1[an agriculturist or a labourer of a domestic servant] and occupied by him ; (d) books of account ; (e) a mere right to sue for damages ; (f) any right of personal service ; (g) stipends and gratuities allowed to pensioners of the Government 2[or of a local authority or of any other employer], or payable out of any service family pension fund 3notified in the Official Gazette by 4[the Central Government or the State Government] in this behalf, and political pensions; 5[(h) the wages of labourers and domestic servants, whether payable in money or in kind; 6***] 7[(i) salary to the extent of 8[the first 9[ 10[one thousand rupees] ] and two third of the remainder] 11[in execution of any decree other than a decree for maintenance]: 12[Provided that where any part of such portion of the salary as is liable to attachment has been under attachment, whether continuously or intermittently, for a total period of twenty -four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months, and, where such attachment has been made in execution of one and the same decree , shall, after the attachment has continued for a total period of twenty -four months, be finally exempt from attachment in execution of that deeree .]] 11[(ia) one-third of the salary in execution of any decree for maintenance;] 13[(j) the pay and allo wances of persons to whom the Air Force Act , 1950 (45 of 1950) or the Ar my Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957), applies;] (k) all compulsory depo sits and other sums in or derive d from any fund to which the Provident Funds Act, 14[1925], (19 of 19 25), for the time being applies in so far as they are declared by the said Act not to be liable to attachment ; 15[(ka) all deposits and other sums in or derived from any fund to which the Public Provident Fund Act, 1968 (23 of 1968), for the time being a pplies, in so far as they are dec lared by the said Act as not to be liable to atta chment; (kb) all moneys payable under a policy of insurance on the life of the judgment -debtor; (kc) the interest of a les see of a residential of building to which the provisions of law for the time being in force relating to control of rents and ac commodation apply;] 16[(1) any allowance forming part of the emoluments of any 17[servant o f the 18[Government] ] or of any servant of a railway company or local authority which the 19[appropriate G overnment] may by notification in the Official Gazette declare to be exempt from attachment , and any subsistence grant or allowance made to 20[any such servant] while under sus pension;] 1. Subs. by Ac t 104 of 1976, s. 23, for an agriculturist (w.e.f. 1 -2-1977) 2. Ins. by s. 23, ibid. (w.e.f. 1 -2-1977). 3. For such a notification, see Gazette of India, 1909, Pt . I, p. 5. 4. Subs. by the A.O. 1937, for the G.G. in C. 5. Subs. by Act 9 of 1937, s. 2, for cl auses (h) and ( i). The amendments made by that section have no effect in respect of any proceedings arising out of a suit instituted before 1st June, 1937, see ibid., section 3. 6. The words and salary, to the extent of the first hundred rupees and one-half the remainder of such salary omitted by Act 5 of 1943, s. 2. 7. Subs. by s. 2, ibid., for clause ( i) and the proviso. 8. Subs. by Act 26 of 1963, s. 2, for the first hundred rupees. 9. Subs. by Act 104 of 1976, s. 23, for two hundred rupees a nd one -half the remainder (w.e.f. 1 -2-1977). 10. Subs. by Act 46 of 1999, s. 6, for four hundred rupees (w.e.f. 1 -7-2002). 11. Ins. by Act 66 of 1956, s. 6 (w.e.f. 1 -1-1957) . 12. Subs. by Act 104 of 1976, s. 23, for the proviso (w.e.f. 1 -2-1977). 13. Subs. by s. 23, ibid., for clause ( j) (w.e.f. 1 -2-1977). 14. Subs. by Act 9 of 1937, s. 2, for 1897. 15. Ins. by Act 104 of 1976, s. 23 (w.e.f. 1 -2-1977). 16. Subs. by Act 9 of 1937, s. 2, for the original clause ( l), see also footnote 3. 17. Subs. by Act 5 of 1943, s. 2, for public officer. 18. Subs. by the A.O. 1950 for crown. 19. Subs. by the A.O. 1937, for G.G. in C. 20. Subs. by Act 5 of 1943, s. 2, for any such officer or servant. 54 (m) an expectancy of succession by survivorship or other merely contingent or possible right or interest; (n) a right to future m aintenance; (o) any allowance declared b y 1[any India n law] to be exempt from liability to attach ment or sale in execution of a decree ; and (p) where the judgment -debtor is a person liable f or the payment of land -revenue ; any movable property which , under any law for the time being applicable to hi m, is exempt from .sale for the recove ry of an arrear of such revenue. 2[Explanation I. The m

.sale for the recove ry of an arrear of such revenue. 2[Explanation I. The moneys payable in relation to the matters mentioned in clauses (g), ( h), (i), (ia), (j), (l) and ( o) are exempt from attachment or sale, whether before or after they are actually payable, and, in the case of salary, the attach able portion thereof is liable to attachment , whether before or after it is actually payable.] 3[ 4[Explanation II. In clauses (i) and (ia)], salary means the total monthly emoluments, excluding any allowance declared exempt from attachment under the provisio ns of clause ( 1), derived by a person from his employment whether on duty or on leave.] 5[Explanation 6[III]In clause ( 1) appropriate Government means (i) as respects any 7[person] in the service of the Central Government, or any servant of 8[a Railwa y Administration] or of a cantonment authority or of the port authority of a major port , the Central Government; 9* * * * * (iii) as respects any other 10[servant of the 11[Government] ] or a servant of any other 12*** local authority, the State Govern ment.] 13[Explanation IVFor the purposes of this proviso, wages includes bonus, and labourer includes a skilled unskilled or semi -skilled labourer. Explanation VFor the purposes of this proviso, the expression agriculturist means a person who cultiv ates land personally and who depends for his livelihood mainly on the income from agricultural land, whether as owner, tenant, partner or agricultural labourer. Explanation VIFor the purposes of Explanation V an agriculturist shall be d eemed to cultivate land personally, if he cultivates land (a) by his own labour, or (b) by the labour of any member of his family, or (c) by servants or labourers on wages payable in cash or in kind (not being as a share of the produce), or both.] 13[(IA) Notwithstanding a nything contained in any other law for the time being in force, an agreement by which a person agrees to waive the benefit of any exemption under this section shall be void.] (2) Nothing in this section shall be deemed 14*** to exempt houses and other build ings (with the materials and the sites thereof and the lands immediately appurtenant thereto and necessary for their enjoyment) from attachment or sale in execution of decrees for rent of any such house, building, site or land 15*** 16* * * * * STATE AMENDMENTS Kerala. In clause ( g) of the Proviso to sub -section ( 1) of section 60, after the words stipends and gratuities allowed by pensioners of the Government the words or of a local authority shall be inserted . [Vide Kerala Act 13 of 1957, s. 3] 1. Subs. by the A.O. 1937, for any law passed under the I ndian Councils Act 1861 and 1892. 2. Subs. by Act 104 of 1976, s. 23 , for Explanation I (w.e.f. 1-2-1977). 3. Added by Act 9 of 1937, s. 2, The amendments made by that section shall not effect in respect of any proceeding arising out of any suit institute d before 1st June, 1937, see ibid., section 3. 4. Subs. by Act 104 of 1976, s. 23, Explanation 2. in clauses ( h) and ( i) (w.e.f. 1 -2- 1977). 5. Ins. by the A.O. 1937. 6. Subs. by Act 104 of 1976, s. 23, for figure 3 (w.e.f. 1 -2-1977). 7. Subs. by Act 5 of 19 43, s. 2, for Public officer. 8. Subs. by the A.O. 1950, for a Federal Railway. 9. Clause ( ii) omitted by the A.O. 1948. 10. Subs. by Act 5 of 1943, s. 2, for public officer. 11. Subs. by the A.O. 1950 for crown. 12. The words railway o r omitted by the A.O. 1950. 13. Ins. by Act 104 of 1976, s. 2 3 (w.e.f. 1 -2-1977). 14. The brackets and letter ( a), rep. by Act 10 of 1914, s. 3 and the Second Schedule. 15. The word or rep. by, s. 3, ibid., and the Second Schedule. 16. Clause ( b) rep. by, s. 3 ibid., and the Second Schedule. 55 In the proviso to sub section ( 1) of section 60 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908), after clause ( g), the following clause shall be inserted, namely: (gg) all moneys payable to the beneficiaries under the Family Benefit Scheme for the employees of the Government of Kerala. [Vide Kerala Act 1 of 1988, s. 2.] Himachal Pradesh. Amendment in section 60. (1) In Section 60 sub -section ( 1): (i) at the end of clause ( c), add the following: or compensation paid for such houses and buildings (including compensation for the materials and the sites and the land referred to above) acquired for a public purpose; (ii) after clause ( c), the following clause shall be inserted, namely: (cc) compensation paid for agricultural lands belongin g to agriculturists and acquired for a public purpose; [Vide Himachal Pradesh Act 6 of 1956, sec. 2.] Tamil Nadu Amendment of section 60, Central Act V of 1908 .In clause (g) of the proviso to sub -section (1) of section 60 of the Code of Civil Procedure, 1 908, after the words stipends and gratuities allowed to pensioners of the Government, the words or of a authority shall be inserted. [Vide Tamil Nadu Act XXXIV of 1950, s. 2] Rajasthan Amendment of section 60, Central Act V of 1908. -In clause (b) of th e proviso to sub -section (1) of section 60 of the code of Civil Procedure, 1908 (Central Act V of 1908) in its application to the State of Rajasthan, after the word, agriculturist the words his milch cattle and those likely to calve within two years sh all be inserted . [Vide Rajasthan Act 1 9 of 195 8, s. 2] Amendment of section 60, Central Act V of 1908. - In the proviso to sub -section (1) of section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908) in the application thereof to the State of Rajasthan, - (i) after clause (k), the following clause shall be inserted, namely: - (kk) moneys payable under Life Insurance Certificates issued in pursuance of the Rajasthan Government Servants Insu rance Rules, 1953;" and (ii) after explanation 3 the foll owing explanation shall be inserted, namely: - ''Explanation 4. -Where any money payable to a Government servant of the State is exempt from attachment under the provision contained in clause (kk), such money shall remain exempt from attachment notwithstandi ng the fact that owing to the death of a Government servant it is payable to some other person." [Vide Rajasthan Act 16 of 1957, s. 2] Uttar Pradesh Addition of explanation (1 -A) to sub -section (1) of section 60. After Explanation (1) of sub -section (1) o f section 60 of the Code of Civil Procedure, 1908, insert the following Explanation (I-A) ; Explanation (I -A) Particulars mentioned in clause (c) are exempt from sale in execution of a decree whether passed before or after the commencement of the Co de of Civil Procedure (United Provinces Amendment) Act, 1908, for enforcement of a mortgage or charge thereon . [Vide Uttar Pradesh Act XXXV of 1948, s. 2] 61. Partial exemption of agricultural produce. The State Government 1*** may, by general or speci al order published in the Official Gazette, declare that such portion of agricultural produce, or of any class of agricultural produce, as may appear to the State Government to be necessary for the purpose of providing until the next harvest for the due cu ltivation of the land and for the support of the judgment -debtor and his family, shall, in the case of all agriculturists or of any class of agriculturists, be exempted from liability to attachment or sale in execution of a decree. 1. The words with the previous sanction of the G.G. in C. omitted by Act 38 of 1920, s. 2 and the First Sch edule Pt 1. 56 62. Seizure of property in dwelling -house. (1) No person executing any process under this Code directing or authorizing seizure of movable property shall enter any dwelling -house after sunset and before sunrise. (2) No outer door of a dwelling -house shall be broken open unless su ch dwelling -house is in the occupancy of the judgment -debtor and he refuses or in any way prevents access thereto, but when the person executing any such process has duly gained access to any dwelling -house, he may break open the door of any room in which he has reason to believe any such property to be. (3) Where a room in a dwelling -house is in the actual occupancy of a woman who, according to the customs of the country, does not appear in public, the person executing the process shall give notice to such woman that she is at liberty to withdraw; and, after allowing reasonable time for her to withdraw and giving her reasonable facility for withdrawing, he may enter such room for the purpose of seizing the property, using at the same time every precaution, consistent with these provisions, to prevent its clandestine removal. 63. Property attached in execution of decrees of several Courts. (1) Where property not in the custody of any Court is under attachment in execution of decrees of more Courts than one, t he Court which shall receive or realize such property and shall determine any claim thereto and any objection to the attachment thereof shall be the Court of highest grade, or, where there is no difference in grade between such Courts, the Court under wh ose decree the property was first attached. (2) Nothing in this section shall be deemed to invalidate any proceeding taken by a Court executing one of such decrees. 1[Explanation. For the purposes of sub -section (2), proceeding taken by a Court does not include an order allowing, to a decree -holder who has purchased property at a sale held in execution of a decree, set off to the extent of the purchase price paya ble by him.] 64. Private alienation of property after attachment to be void. 2[(1)] Where an attachment has been made, any private transfer or delivery of the property attached or of any interest therein and any payment to the judgment - debtor of any debt, dividend or other mon ies contrary to such attachment, shall be void as against all claims enforceable under the attachment. 3[(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of any interest therein, made in pursuance of any contract for such transfer or delivery entered into and registered be fore the attachment.] Explanation. For the purpose of this section, claims enforceable under an attachment include claims for the rateable distribution of assets. SA L E 65. Purchaser s title. Where immovable property is sold in execution of a decree and suc h sale has become absolute, the property shall be deemed to have vested in the purchaser from the time when the property is sold and not from the time when t he sale becomes absolute. 66. [Suit purchase being on behalf of plaintiff. ] Rep. by Act , 1988 (45 of 1988), s. 7 (w.e.f. 19-5-1988). 67. Power for State Government to make rules as to sales of land in execution of decrees for payment of money. 4[(1)] The State Government 5*** may, by notification in the Official Gazette, make rules for any local ar ea imposing conditions in respect of the sale of any class of interests in land in execution of decrees for the payment of money, where such interest are so uncertain or undetermined as, in the opinion of the State Government, to make it impossible to fix their value. 6[(2) When on the date on which this Code came into operation in any local area, any special rules as to sale of and in execution of decrees were in force therein, the State Government may, by notification in the Official Gazette declare such rules to be in force, or may 5*** by a like notification, modify the same. Every notification issued in the exercise of the powers conferred by this sub -section shall set out the rules so continued or modified.] 7[(3) Every rule made under this section sha ll be laid, as soon as may be after it is made, before the State Legislature.] 1. Explanation ins. by Act 104 of 1976, s. 24 (w.e.f. 1 -2-1977). 2. Section 64 renumbered as sub -section ( 1) by Act 22 of 2002, s. 3 (w.e.f. 1 -7-2002). 3. Ins. by , Act 22 of 2002 , s. 3, (w.e.f. 1 -7-2002). 4. Section 67 renumbered as sub -section ( 1) by Act 1 of 1914, s. 3. 5. The words with the previous sanction of the G.G. in C. omitted by Ac t 38 of 1920, s. 2 and the Schedule , Pt. 1. 6. Added by Act 1 of 1914, s. 3. 7. Ins. by Act 20 of 1983, s. 2 and the Schedule (w.e.f. 15 -3-1984). 57 DE

s. 2 and the Schedule (w.e.f. 15 -3-1984). 57 DELEGATION TO COLLECTOR OF POWER TO EXECUTE DECREES AGAINST IMMOVABLE PROPERTY 68. [Power to prescribe rules for transferring to collector execution of certain decrees .] Rep. by the Code of Civil Procedure (Amendment) Act, 1956 (66 of 1956), s. 7 (w.e.f. 1-1-1957) . 69. [Provisions of Third Schedule to apply. ] Rep. by s. 7 ibid, (w.e.f. 1-1-1957) . 70. [Rules of Procedure. ] Rep. by s. 7 ibid, (w.e.f. 1-1-1957) . 71. [Jurisdict ion of Civil Courts barred. ] Rep. by s. 7 ibid, (w.e.f. 1-1-1957) . 72. [Collector to deemed to be acting judicially. ] Rep. by s. 7 ibid, (w.e.f. 1-1-1957) . DISTRIBUTION OF ASSETS 73. Proceeds of execution -sale to be rateably distributed among decree -hold ers.(1) Where assets are held by a Court and more persons than one have, before the receipt of such assets, made application to the Court for the execution of decrees for the payment of money passed against the same judgment -debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realization, shall be rateably distributed among all such persons: Provided as follows: (a) where any property is sold subject to a mortgage or charge, the mortgage or incumbrancer shall not b e entitled to share in any surplus arising from such sale; (b) where any property liable to be sold in execution of a decree is subject to a mortgage or charge, the Court may, with the consent of the mortgagee or incumbrancer, order that the property be so ld free from the mortgage or charge, giving to the mortgagee or incumbrancer the same interest in the proceeds of the sale as he had in the property sold; (c) where any immovable property is sold in execution of a decree ordering its sale for the discharge of an incumbrance thereon, the proceeds of sale shall be applied First, in defraying the expenses of the sale; Secondly , in discharging the amount due under the decree; Thirdly, in di scharging the interest and principal monies due on subsequent incumbra nces (if any); and Fourthly, rateably among the holders of decrees for the payment of money against the judgment -debtor, who have, prior to the sale of the property, applied to the Court which passed the decree ordering such sale for execution of such decrees, and have no obtained satisfaction thereof. (2) Where all or any of the assets liable to be rateably distributed under this section are paid to a person not entitled to receive the same, any person so entitled may sue su ch person to compel him to refund the assets. (3) Nothing in this section affects any right of the Government. RESISTANCE TO EXECUTION 74. Resistance to execution. Where the Court is satisfied that the holder of a decree for the possession of immovable p roperty or that the purchaser of immovable property sold in execution of a decree has been resisted or obstructed in obtaining possession of the property by the judgment -debtor or some person on his behalf and that such resistance or obstruction was withou t any just cause, the Court may, at the instance of the decree -holder or purchaser, order the judgment -debtor or such other person to be detained in the civil prison for a term which may extend to thirty days and may further direct that the decree -holder o r purchaser be put into possession of the property. PART III INCIDENTAL PROCEEDINGS COMMISSIONS 75. Power of Court to issue commissions. Subject to such conditions and limitations as may be prescribed , the Court may issue a commission (a) to examine any person; (b) to make a local investigation; (c) to examine or adjust accounts; or (d) to make a partition; 1[(e) to hold a scientific, technical, or expert investigation; 1. Ins. by Act 104 of 1976, s. 26 (w.e.f. 1 -2-1977). 58 (f) to cond uct sale of property which is subject to speedy and natural decay and whic h is in the custody of the Court pending the determination of the suit; (g) to perform any ministerial act.] 76. Commission to another Court. (1) A commission for the examination of any person may be issued to any Court (not being a High Court) situate in a State other than the State in which the Court of issue is situate and having jurisdiction in the place in which the person to be examined resides. (2) Every Court receiving a commission for the examination of any person under sub -section ( 1) shall exami ne him or cause him to be examined pursuant thereto, and the commission, when it has been duly executed, shall be returned together with the evidence taken under it to the Court from which it was issued, unless the order for issuing the commission has othe rwise directed, in which case the commission shall be returned in terms of such order. 77. Letter of request. In lieu of issuing a commission the Court may issue a letter of request to examine a witness residing at any place not within 1[India .] 2[78. Comm issions issued by foreign Courts. Subject to such conditions and limitations as may be prescribed the provisions as to the execution and return of commissions for the examination of witnesses shall apply to commissions issued by or at the instance of (a) Courts situate in any part of India to which the provisions of this Code do not extend; or (b) Courts established or continued by the authority of the Central Government outside India; or (c) Courts of any State or country outside India.] PART IV SUITS I N PARTICULAR CASES SUITS BY OR AGAINST THE GOVERNMENT OR PUBLIC OFFICERS IN THEIR OFFICIAL CAPACITY 3[79. Suits by or against Government. In a suit by or against the Government, the authority to be named as plaintiff or defendant, as the case may be, shall be (a) in the case of a suit by or against the Central Government, 4[the Union of India], and (b) in the case of a suit by or against a State Government, the State.] 80. Notice. 5[(1)] 6[ Save as otherwise provided in sub -section ( 2), no suits 7[shall be instituted] against the Government (including the Government of the State of Jammu and Kashmir)] or against a public officer in respect of any act purporting to be done by such public officer in his official capacity, until the expiration of two months next after notice in writing has been 8[delivered to, or left at the office of] (a) in the case of a suit against the Central Government, 9[except where it relates to a railway] a Secretary to that Government; 10[(b)] in the case of a suit against the C entral Government where it relates to railway, the General Manager of that railway; 11[(bb) in the case of a suit against the Government of the State of Jammu and Kashmir, the Chief Secretary to that Government or any other officer authori zed by that Govern ment in this behalf;] (c) in the case of a suit against 12[any other State Government], a Secretary to that Government or the Collector of the district; 13*** 14* * * * * 1. Subs. by Act 2 of 1951, s. 3, for the States. 2. Subs. by Act 2 of 1951, s. 11, for section 78 (w.e.f. 1 -4-1951). 3. Subs by the A.O. 1948, for section 79. 4. Subs. by the A.O. 1950, for the Dominion of India. 5. S. 80 renumbered as sub -section ( 1) by Act 104 of 1976, s. 27 (w.e.f. 1 -2-1977). 6. Subs. by s. 27, ibid., for No suit shall be instituted (w.e.f. 1 -2-1977). 7. Subs. by Act 26 of 1963, s. 3, for shall be instituted against the Government (w.e.f. 5 -6-1964). The words in italics were subs. by the A.O. 1948, for Instituted against the Crown 8. Subs. by the A.O. 1937, for in the case of the Secretary of State in Council, delivered to, or left at the office of a Se cretary to the L.G. or the Collector of the District. 9. Ins. by Act 6 of 1948, s. 2. 10. Clause ( aa) ins. by Act 6 of 1948, s. 2 and relattered as clause ( b) and the Former clause ( b) omitted by the A.O. 1948. 11. Ins. by Act 26 of 1963, s. 3 (w.e.f. 5 -6-1964). 12. Subs. by s. 3, ibid., for a State Government (w.e.f. 5 -6-1964). 13. The word and omitted by the A.O. 1948. 14. C lause ( d) omitted ibid. 59 and, in the case of a public officer, delivered to him or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims; and the plaint shall contain a statement that such notice has been so delivered or left. 1[(2) A suit to obtain an urgent or immediate relief against the Government (including the Government of the State of Jammu and Kashmir) or any public officer in respect of any act purporting to be done by such public officer in his official capacity, may be institute d, with the leave of the Court, without serving any notice as required by sub -section ( 1); but the Court shall not grant relief in the suit, whether interim or otherwise, except after giving to the Government or public officer, as the case may be, a reason able opportunity of showing cause in respect of the relief prayed for in the suit : Provided that the Court shall, if it is satisfied, after hearing the parties, that no urgent or immediate relief need be granted in the suit, return the plaint for presentat ion to it after complying with the requirements of sub -section ( 1). (3) No suit instituted against the Government or against a public officer in respect of an y act purporting to be done by such public officer in his official capacity shall be dismissed mer ely by reason of any error or defect in the notice referred to in sub -section ( 1), if in such notice (a) the name, description and the residence of the plaintiff had been so given as to enable the appropriate authority or the public officer to identify t he person serving the notice and such notice had been delivered or left at the office of the appropriate authority specified in sub -section ( 1), and (b) the cause of action and the relief claimed by the plaintiff had been substantially indicate d.] 81. Exem ption from a rrest and personal appearance. In a suit instituted against a public officer in respect of any act purporting to be done b y him in his official capacity (a) the defendant shall not be liable to arrest nor his property to attachment otherwise than in execution of a decree, and, (b) where the Court is satisfied that the defendant cannot absent himself from his duty without detriment to the public service, it shall exempt him from appea ring in person. 82. Execution of decree. 2[(1) Where, in a su it by or against the Government or by or against a public officer in respect of any act purporting to be done by him in his official capacity , a decree is passed against the Union of India or a State or, as the case may be, the public officer , such decree shall not be executed except in accordance with the provisions of sub -section ( 2).] (2) Execution shall not be issued on any such decree unless it remains unsatisfied for the period of three months computed from the date of 3[such decree]. 4[(3) The provis ions of sub -sections (1) and (2) shall apply in relation to an order or award as they apply in relation to a decree, if the order or award (a) is passed or made against 5[the Union of India] or a State or a public officer in respect of any such act as af oresaid, whether by a Court or by any other authority; and (b) is capable of being executed under the provisions of this Code or of any other law for the time being in force as if it were a decree.] 1. Ins. by Act 104 of 1976, s. 27 (w.e.f. 1 -2-1977). 2. Subs. by s. 28, ibid., for sub -section ( 1) (w.e.f. 1 -2-1977). 3. Subs. by Act 104 of 1976, s. 28, for such report (w.e.f. 1 -2-1977). 4. Ins. by Act 32 of 1949, s. 2. 5. Subs . by the A.O. 1950, for the Dominion of India. 60 1[SUITS BY ALIENS AND BY OR AGAINST FOREIGN RULERS, AMBA SSADORS AND ENVOYS ] 83. When aliens may sue. Alien enemies residing in India with the permission of the Central Government, and alien friends, may sue in any Court otherwise competent to try the suit, as if they were citizens of India, but alien enemies re siding in India without such permission, or residing in a foreign country, shall not sue in any such Court. Explanation. Every person residing in a foreign country, the Government of which is at war with India and carrying on business in that country with out a licence in that behalf granted by the Central Government, shall, for the purpose of this section, be deemed to be an alien enemy residing in a foreign country. 84. When foreign States may sue. A foreign State may sue in any competent Court: Provided that the object of the suit is to enforce a private right vested in the Ruler of such State or in any officer of such State in his public capacity. 85. Persons specially appointed by Government to prosecute or defend on behalf of foreign Rul

in his public capacity. 85. Persons specially appointed by Government to prosecute or defend on behalf of foreign Rulers. (1) The Central Government may, at the request of the Ruler of a foreign State or at the request of any person competent in the opinion of the Central Government to act on behalf of such Ruler, by order, appoint any persons to prosecute or defend any suit on be half of such Ruler, and any persons so appointed shall be deemed to be the recognized agents by whom appearances, acts and applications under this Code may be made or done on behalf of such Ruler. (2) An appointment under this section may be made for the p urpose of a specified suit or of several specified suits, or for the purpose of all such suits as it may from time to time be necessary to prosecute or defend on behalf of such Ruler. (3) A person appointed under this section may authorise or appoint any o ther persons to make appearances and applications and do acts in any such suit or suits as if he were himself a party thereto. 86. Suits against foreign Rulers, Ambassadors and Envoys. (1) No. 2*** foreign State may be sued in any Court otherwise competent to try the suit except with the consent of the Central Government certified in writing by a Secretary to that Government: Provided that a person may, as a tenant of immovable property, sue without such consent as aforesaid 3[a foreign State] from whom he holds or claims to hold the property. (2) Such consent may be given with respect to a specified suit or to several specified suits or with respect to all suits of any specified class or classes, and may specify, in the case of any suit or class of suits, t he Court in which 4[the foreign State] may be sued, but it shall not be given, unless it appears to the Central Government that 4[the foreign State] (a) has instituted a suit in the Court against the person desiring to sue 5[it], or (b) by 6[itself] or a nother, trades within the local limits of the jurisdiction of the Court, or (c) is in possession of immovable property situate within those limits and is to be sued with reference to such property or for money charged thereon, or (d) has expressly or impli edly waived the privilege accorded to 5[it] by this section. 7[(3) Except with the consent of the Central Government, certified in writing by a Secretary to that Government, no decree shall be executed against the property of any foreign State.] (4) The p receding provisions of this section shall apply in relation to 8[(a) any ruler of a foreign State; ] 1. Subs. by Act 2 of 1951, s. 12, for the former heading and s ub-sections 83 to 87 (w.e.f. 1 -4-1951) . 2. The words Ruler of a omitted by Act 104 of 1976, s. 29 (w.e.f. 1 -2-1977). 3. Subs. by s. 29, ibid., for a Ruler (w.e.f. 1 -2-1977). 4. Subs. by s. 29, ibid., for the Ruler (w.e.f. 1 -2-1977). 5. Subs. by s. 29, ibid., for him (w.e.f. 1 -2-1977). 6. Subs. by Act 104 of 1976, s. 29, for himself (w.e.f. 1 -2-1977). 7. Subs. by s. 29, ibid., for sub -section ( 3) (w.e.f. 1 -2-1977). 8. Ins. by s. 29, ibid. (w.e.f. 1 -2-1977). 61 1[(aa)] any Ambassador or Envoy of a foreign State; (b) any High Commissioner of a Commonwealth country; and (c) any such member of the staff 2[of the fore ign State or the staff or retinue of the Ambassador] or Envoy of a foreign State or of the High Commissioner of a Commonwealth country as the Central Government may, by general or special order, specify in this behalf . 3[as they apply in relation to a fore ign State]. 4[(5) The following persons shall not be arrested under this Code , namely: (a) any Ruler of a foreign State; (b) any Ambassador or Envoy of a foreign State ; (c) any High Commissioner of a Commonwealth country; (d) any such member of the sta ff of the foreign State or the staff or retinue of the Ruler, Ambassador or Envoy of a foreign State or of the High Commissioner of a Commonwealth country, as the Central Government may, by general or special order, specify in this behalf. (6) Where a requ est is made to the Central Government for the grant of any consent referred to in subsection ( 1), the Central Governm ent shall, before refusing to accede to the request in whole or in part , give to the person making the request a reasonable opp ortunity of being heard.] 87. Style of foreign Rulers as parties to suits. The Ruler of a foreign State may sue , and shall be sued, in the name of his State: Provided that in giving the consent referred to in section 86, the Central Government may direct t hat the Ruler may be sued in the name of an agent or in any other name. 87A. Definitions of Foreign State and Rulers . (1) In this Part, (a) foreign State means any State outside India which has been recognised by the Central Government; and (b) Ruler, in relation to a foreign State, means the person who is for the time being recognized by the Central Governme nt to be the head of that State. (2) Every Court shall take judicial notice of the fact (a) that a State has or has not been recognized by the Central Government; (b) that a person has or has not been recognized by the Central Government to be the head of a State. SUITS AGAINST RULERS OF FORMER INDIAN STATES 87B. Applications of sections 85 and 86 to Rulers of former Indian States .5[(1) In the case of any suit by or against the Ruler of any former Indian State which is based wholly or in part upon a cause of action which arose before the commencement of the Constitution or any proceeding arising out of such suit , the provisions of section 85 and sub -sections ( 1) and ( 3) of section 86 shall apply in relation to such Ruler as they apply in relation to the Ruler of a foreign State.] (2) In this section (a) former Indian State means any such Indian State as the Central Government may, by notification in the Official Gazette, specify for the purposes of this ; 6*** 1. Clause ( a) re-lettered as clause ( aa) by Act 104 of 1976, s. 29 (w.e.f. 1 -2-1977). 2. Subs. by s. 29, ibid, for or retinue of the Ruler, Ambassador (w.e.f. 1 -2-1977). 3. Subs. b y s. 29, ibid, for as they apply in relation to the Ruler of a foreign State (w.e.f. 1 -2-1977). 4. Ins. by s. 29, ibid. (w.e.f. 1 -2-1977). 5. Subs. by Act 54 of 1972, s. 3, for sub -section ( 1) (w.e.f. 9 -9-1972) . 6. The word and omitted by s. 3 , ibid. (w.e.f. 9 -9-1972) . 62 1[(b) Comm encement of the Co nstitution means the 26th day of January, 1950; and (c) Ruler , in relation to a former Indian State, has the same meaning as in article 363 of the Constitution. ] INTERPLEADER 88. Where interpleader suit may be instituted. Where two or more persons claim adversely to one another the same debts, sum of money or other property, movable or immovable, from another person, who claims no interest therein o ther than for charges or costs and who is ready to pay or deliver it to the rightful claimant, such other person may institute a suit of interpleader against all the claimants for the purpose of obtaining a decision as to the person to whom the payment or delivery shall be made and of obtaining indemnity for himself: Provided that where any suit is pending in which the rights of all parties can properly be decided, no such suit of interpleader shall be instituted. PART V SPECIAL PROCEEDINGS ARBITRATION 2[89. Settlement of disputes outs ide the Court. (1) Where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observa tions and after receiving the observations of the parties, the Court may reformulate the terms of a possible settlement and refer the same for: (a) arbitration; (b) conciliation; (c) judicial settlement including settlement through Lok Adalat ; or (d) mediation. (2) Were a dispute has been referred (a) for arbitration or conciliation , the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration or conciliation were r eferred for settlement under the provisions of that Act ; (b) to Lok Adalat, the Court shall refer the same to the Lok Adalat in accordance with the provisions of sub -section ( 1) of section 20 of the Legal Services Authority Act, 1987 (39 of 1987) and all o ther provisions of that Act shall .apply in respect of the dispute so referred to the Lok Adalat; (c) for judicial settlement, the Court shall refer the same to a suitable institution or person and such institution or person shall be deemed to be a Lok Ada lat and all the provisions of the Legal Services Authority Act, 1987 (39 of 1987) shal l apply as if the dispute were referred to a Lok Adalat under the provisions of that Act; (d) for mediation, the Court shall effect a compromise between the parties and s hall follow such procedure as may be prescribed.] SPECIAL CASE 90. Power to state case for opinion of Court. Where any person agree in writing to state a case for the opinion of the Court, then the Court shall try and determine the same in the manner presc ribed. 1. Subs. by Act 54 of 1972 , s. 3, for clause ( b) (w.e.f. 9 -9-1972) . 2. Ins. by Act 46 of 1999, s. 7 (w.e.f. 1 -7-2002) , Earlier rep by Act 10 of 1940, s. 49 or the Third Schedule. 63 1[PUBLIC NUISANCES AND OTHER WRONGFUL ACTS AFFECTING THE PUBLIC ] 91. Public nuisances and other wrongful acts affecting the public. 2[(1) In the case of a public nuisance or other wrongful act affecting, or likely to affect, the public, a suit for a declaration and injunction or for such other relief as may be appropriate in the circumstances of the case, may be instituted, (a) by the Advocate -General, or (b) with the leave of the Court, by two or more persons, even though no special damage has b een caused to such persons by reason of such public nuisance or other wrongful act.] (2) Nothing in this section shall be deemed to limit or otherwise affect any right of suit which may exist independently of its provisions. 392. Public charities. (1) In the case of any alleged breach of any express or constructive trust created for public purposes of a charitable or religious nature, or where the direction of the Court is deemed necessary for the administration of any such trust, the Advocate -General, or t wo or more persons having an interest in the trust and having obtained the 4[leave of the Court,] may institute a suit, whether contentious or not, in the principal Civil Court of original jurisdiction or in any other Court empowered in that behalf by the State Government within the local limits of whose jurisdiction the whole or any part of the subject -matter of the trust is situate to obtain a decree : (a) removing any trustee; (b) appointing a new trustee; (c) vesting any property in a trustee; 5[(cc) directing a trustee who has been removed or a person who has ceased to be a trustee, to deliver possession of any trust property in his possession to the person entitled to the possession of such property]; (d) directing accounts and inquiries; (e) declari ng what proportion of the trust property or of the interest therein shall be allocated to any particular object of the trust; (f) authorizing the whole or any part of the trust property to be let, sold, mortgaged or exchanged; (g) settling a scheme; or (h) granting such further or other relief as the nature of the case may require. (2) Save as provided by the Religious Endowments Act, 1863 ( XX of 1863), 6[or by any corresponding law in force in 7[the territories which, immediately before the 1st November, 1 956, were comprised in Part B States]], no suit claiming any of the reliefs specified in sub -section (1) shall be instituted in respect of any such trust as is therein referred to except in conformity with the provisions of that sub -section. 8[(3) The Cour t may alter the original purposes of an express or constructive trust created for public purposes of a charitable or religious nature and allow the property or income of such trust or any portion thereof to be applied cy pres in one or more of the followin g circumstances, namely: (a) where the original purposes of the trust, in whole or in part : (i) have been, as far as may be, fulfilled; or (ii) cannot be carried out at all, or cannot be carried out according to the directions given in the instrument c reating the trust or, where there is no such instrument, according to the spirit of the trust; or 1. Subs. by Act 104 of 1976, s. 30, for the former headi ngs (w.e.f. 1 -2-1977). 2. Subs. by s. 30, ibid., for sub -section ( 1) (w.e.f. 1 -2-1977). 3. S. 92 shall not apply to any religious trust in Bihar, see Bihar Act 1 of 1951. 4. Sub

92 shall not apply to any religious trust in Bihar, see Bihar Act 1 of 1951. 4. Subs. by Act 104 of 1976, s. 31, for consent in writing of the Advocate -General (w.e.f. 1 -2-1977). 5. Ins. by Act 66 of 1956, s. 9 (w.e.f. 1 -1-1957) . 6. Ins. by Act 2 of 1951, s. 13 (w.e.f. 1 -4-1951) . 7. Subs. by the A.O. (No. 2), 1956, for a Part B State. 8. Ins. by Act 104 of 1976, s. 31 (w.e.f. 1 -2-1977). 64 (b) wher e the original purposes of the trust provide a use for a part only of the property available by virtue of the trust; or (c) where the property availab le by virtue of the trust and other property applicable for similar purposes can be more effectively used in conjunction with, and to that end can suitably be made applicable to any other purpose, regard being had to the spirit of the trust and its applica bility to common purposes; or (d) where the original purposes, in whole or in part, were laid down by reference to an area which then was, but has since ceased to be, a unit for such purposes; or (e) where the original purposes, in whole or in part, have, since they were laid down : (i) been adequately provided for by other means, or (ii) ceased, as being useless or harmful to the community, o r (iii) ceased to be, in law, charitable, or (iv) ceased in any other way to provide a suitable and effective metho d of using the property available by virtue of the trust, regard being had to the spirit of the trust.] 93. Exercise of powers of Advocate -General outside presidency -towns. The powers conferred by sections 91 and 92 on the Advocate -General may, outside the presidency -towns, be, with the previous sanction of the State Government, exercised also by the Collector or by such officer as the State Government may appoint in this behalf. PART VI SUPPLEMENTAL PROCEEDINGS 94. Supplemental proceedings. In order to pre vent the ends of justice from being defeated the Court may, if it is so prescribed, (a) issue a warrant to arrest the defendant and bring him before the Court to show cause why he should not give security for his appearance, and if he fails to comply wi th any order for security commit him to the civil prison; (b) direct the defendant to furnish security to produce any property belonging to him and to place the same at the disposal of the Court or order the attachment of any property; (c) grant a temporar y injunction and in case of disobedience commit the person guilty thereof to the civil prison and order that his property be attached and sold; (d) appoint a receiver of any property and enforce the performance of his duties by attaching and selling his pr operty; (e) make such other interlocutory orders as may appear to the Court to be just and convenient. 95. Compensation for obtaining arrest, attachment or injunction on insufficient grounds. (1) Where, in any suit in which an arrest or attach ment has been effected or a temporary injunction granted under the last preceding section, (a) it appears to the Court that such arrest, attachment or injunction was applied for on insufficient grounds, or (b) the suit of the plaintiff fails and it appea rs to the Court that there was no reasonable or probable grounds for instituting the same, the defendant may apply to the Court, and the Court may, upon such application, award against the plaintiff by its order such amount 1[not exceeding fifty thousand rupees], as it deems a reasonable compensation to the defendant for the 2[expense or injury (including injur y to reputation) caused to him] : Provided that a Court shall not award, under this section an amount exceeding the limits of its pecuniar jurisdicti on. (2) An order determining any such application shall bar any suit for compensation in respect of such arrest, attachment or injunction. 1. Subs. by Act 46 of 1999, s. 8, for not exceeding one thousand rupees (w.e.f. 1 -7-2002). 2. Subs. by Act 104 of 1976, s. 32, for expense or injury caused to him ( w.e.f. 1 -2-1977 ). 65 PART VII APPEALS APPEALS FROM ORIGINAL DECREES 96. Appe al from original decree. (1) Save where otherwise expressly provided in the body of this Code or by any other law for the time being in force, an appeal shall lie from every decree passed by any Court exercising original jurisdiction the Court authorized to hear appeals from the decisions of such Court. (2) An appe al may lie from an original decree passed ex parte. (3) No appeal shall lie from a decree passed by the Court with the consent of parties. 1[(4) No appeal shall lie, except on a question of law, from a decree in any suit of the nature cognisable by Courts of Small Causes, when the amount or value of the subject -matter of the original suit does not exceed 2[ten thousand rupees.]] 97. Appeal from final decree where no appeal from preliminary de cree.Where any party aggrieved by a preliminary decree passed aft er the commencement of this Code does not appeal from such decree, he shall be precluded from disputing its correctness in any appeal which may be preferred from the final decree. 98. Decision where appeal heard by two or more Judges. (1) Where an appeal i s heard by a Bench of two or more Judges, the appeal shall be decided in accordance with the opinion of such Judges or of the majority (if any) of such Judges. (2) Where there is no such majority which concurs in a judgment varying or reversing the decree appealed from, such decree shall be confirmed : Provided that where the Bench hearing the appeal is 3[composed of two or other even number of Judges belonging to a Court consisting of more Judges than those constituting the Bench] and the Judges composing the Bench differ in opinion on a point of law, they may state the point of law upon which they differ and the appeal shall then be heard upon that point only by one or more of the other Judges, and such point shall be decided according to the opinion of th e majority (if any) of the Judges who have heard the appeal , including those who first heard it. 4[(3) Nothing in this section shall be deemed to alter or o therwise affect any provision of the letters to patent of any High Court.] 99. No decree to be rever sed or modified for error or irregularity not affecting merits or jurisdiction. No decree shall be reversed or substantially varied, nor shall any case be remanded, in appeal on account of any misjoinder 5[or non -joinder] of parties or causes of action or any error, defect or irregularity in any proceedings in the suit, not affecting the merits of the case or the jurisdiction of the Court: 6[Provided that nothing in this section shall apply to non -joinder of a necessary party.] 7[99A. No order under sec tion 47 to be reversed or modified unless decision of the case is prejudicially affected. Without prejudice to the generality of the provisions of section 99, no order under section 47 shall be reversed or substantially varied, on account of any error, def ect or irregularity in any proceeding relating to such order, unless such error, defect or irregularity has prejudicially affected the decision of the case.] APPEALS FROM APPELLATE DECREES 8[100. Second appeal. (1) Save as otherwise expressly provided in t he body of this Code or by any 1. Ins. by Act 104 of 1976, s. 33 (w.e.f. 1 -2-1977). 2. Subs. by Act 46 of 1999, s. 9, for three thousand rupees (w.e.f. 1 -7-2002). 3. Subs. by Act 104 of 1976, s. 34, for certain words (w.e.f. 1 -2-1977). 4. Ins. by Act 18 of 1928, s. 2 and the First Sch edule . 5. Ins. by Act 104 of 1976, s. 35 (w.e.f. 1 -2-1977). 6. Provi so Added by s. 35 , ibid. (w.e.f. 1 -2-1977). 7. Ins. by s. 36, ibid. (w.e.f. 1 -2-1977). 8. Subs. by s. 37, ibid., for s ection 100 (w.e.f. 1 -2-1977). 66 other la w for the time being in force, an appeal shall lie to the High Court from every decree passed in appeal by any Court subordinate to the High Court, if the High Court is satisfied that the case involves a substantial question of law. (2) An appeal may lie under this section from an appellate decree passed ex parte. (3) In an appeal under this section, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal. (4) Where the Hi gh Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (5) The appeal shall be heard on the question so formulated and the respondent shall , at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub -section shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law, not formulated by i t, if it is satisfied that the case involves such question.] STATE AMENDMENT Kerala. In sub-section ( 1) of s ection 100 of the Principal Act, after clause ( c), the following clause shall be added, namely: (d) the finding of the lower appellate court on any question of fact material to the right decision of the case on the merits being in conflict with the finding of the Court of first instance on such question. [Vide Kerala Act 13 of 1957 sec. 4 .] 1[100A. No further appeal in certain cases. Notwithstanding anything contained in any Letters Patent for any High Court or in any instrument having the force of law or in any other law for the time being in force, where any appeal from an original or appellate decree or order is heard and decided by a Single Judge of a High Court, no further appeal shall lie from the judgment and decree of such Single Judge.] 101. Second appeal on no other grounds. No second appeal shall lie except on the ground mentioned in section 100. 2[102. No second appeal in certain cases. No second appeal shall lie from any decree, when the subject matter of the original suit is for recovery of money not exceeding twenty -five thousand rupees.] 3[103. Power of High Court to determine issue of fact. In any second appeal, the High Court may, if t he evidence on the record is sufficient, determine any issue necessary for the disposal of the appeal , (a) which has not been determined by the lower Appellate Court or both by the Court of first instance and the lower Appellate Court, or (b) which has b een wrongly determined by such Court or Courts by reason of a decision on such question of law as is referred to in section 100.] APPEALS FROM ORDERS 104. Orders from which appeal lies. (1) An appeal shall lie from the following orders, and save as otherwise expressly provided in the body of this Code or by any law for the time being in force, from no other orders: 4* * * * * 5[(ff) an order under section 35A;] 1. Subs. by Act 2 2 of 2002, s. 4, for section 100 A (w.e.f 1 -7-2002). 2. Subs. by s. 5, ibid., for s ection 102 (w.e.f. 1 -7-2002). 3. Subs. by Act 104 of 1976, s. 40, for s ection 103 (w.e.f. 1 -2-1977). 4. Clauses (a) to ( f) omitted by Act 10 of 1940, s. 49 and the Third Sch edule . 5. Ins. by Act 9 of 1922, s. 3, see also foot -note to s ection 35A, Supra . 67 1[(ffa) an order under section 91 or section 92 refusing leave to institute a suit of the nature referred to in section 91 or section 92, as the case may be;] (g) an order under section 95; (h) an order under any of the provisions of this Code imposing a fine or directing the arrest or detention in the civil prison of any person except where s uch arrest or detention is in execution of a decree; (i) any order made under rules from which an appeal is expressly allowed by rules: 5[Provided that no appeal shall lie against any order specified in clause (ff) save on the ground that no order, or an o rder for the payment of a less amount, ought to have been made.] (2) No appeal shall lie from any order passed in appeal under this section. 105. Other orders. (1) Save as otherwise expressly provided, no appeal shall lie from any order made by a Court in the exercise of its original or appellate jurisdiction; but where a decree is appealed from, any error, defect or irregularity in any order, affecting the decision of the case, may be set forth as a ground of objection in the memorandum of appeal. (2) Notw ithstanding anything contained in sub -section ( 1), where any party aggrieved by an order of remand 2*** from which an appeals lies does not appeal therefrom, he shall thereafter be precluded from disputing its correctness. 106. What Courts to hear appeals. Where an appeal from any order is allowed it shall lie to the Court to which an appeal would lie from the decree in the suit in which such order was made, or where such order is made by a Court (not being a High Court) in the exercise of appellate jurisdi ction, then to the High Court. GENERAL PROVISIONS RELATING TO APPEALS 107. Powers of App

the High Court. GENERAL PROVISIONS RELATING TO APPEALS 107. Powers of Appellate Court. (1) Subject to such conditions and limitat ions as may be prescribed, an Appellate Court shall have power (a) to determine a case finally; (b) to remand a case; (c) to frame issues and refer them for trial; (d) to take additional evidence or to require such evidence to be taken. (2) Subject as aforesaid, the Appellate Court shall have the same powers and shall perform as nearly as may be the same duties as are conferred and imposed by this Code on Courts of original jurisdiction in respect of suits instituted therein. 108. Procedure in appeals from appellate decrees and orders. The provisions of this Part relating to appeals from original decree s shall, so f ar as may be, apply to appeals (a) from appellate decrees, and (b) from orders made under this Code or under any special or local law in which a different procedure is not provided. APPEALS TO THE SUPREME COURT 3[109. When appeals lie to the Supreme Court .Subject to the provisions in Chapter IV of Part V of the Constitution and such rules as may, from time to time, be made by the Supreme Court regarding appeals 1. Ins. by Act 104 of 1976, s. 4 1 (w.e.f. 1 -2-1977). 2. Words made after the commencement of this Code omitted by, s. 42 , ibid., (w.e.f. 1 -2-1977). 3. Subs. by Act 49 of 1973, s. 2, for s ection 109 (w.e.f. 29 -11-1973) . 68 from the Courts of India, and to the provisions hereinafter contained, an appeal shall lie to t he Supreme Court from any judgment, decree or final order in a civil proceeding of a High Court, if the High Court certifies (i) that the case involves a substantial question of law of general importance; and (ii) that in the opinion of the High Court the said question needs to be decided by the Supreme Court. ] 110. [Value of subject matters.] omitted by the Code of Civil Procedure (Amendment ) Act, 1973 (49 of 1973), s. 3 (w.e.f. 29-11-1973). 111. [Bar of certain appeals. ] omitted by the A.O. 1950. 1[111A. [Appeals to Federal Court ] Rep. by the Federal Court Act, 1941 (21 of 1941), s. 2 (w.e.f. 1-9- 1942). 112. Savings. 2[(1) Nothing contained in this Code shall be deemed (a) to affect the powers of the Supreme Court under article 136 or any other provision of the Constitution; or (b) to interfere with any rules made by the Supreme Court, and for the time being in force for the presentation of appeals to that Court, or their conduct before that Court.] (2) Nothing herein contained applies to any matter of cr iminal or admiralty or vice -admiralty jurisdiction or to appeals from orders and decrees of Prize Courts. PART VIII REFERENCE, REVIEW AND REVISION 113. Reference to High Court. Subject to such conditions and limitations as may be prescribed, any Court may state a case and refer the same for the opinion of the High Court, and the High Court may make such order thereon as it thinks fit: 3[Provided that where the Court is satisfied that a case pending before it involves a question as to the validity of any Act , Ordinance or Regulation or of any provision contained in an Act, Ordinance or Regulation, the determination of which is necessary for the disposal of the case, and is of opinion that such Act, Ordinance, Regulation or provision is invalid or inoperative, but has not been so declared by the High Court to which that Court is subordinate or by the Supreme Court, the Court shall state a case setting out its opinion and the reasons therefor, and refer the same for the opinion of the High Court. Explanation. In this section, Regulation means any Regulation of the Bengal, Bombay or Madras Code or Regulation as defined in the General Clauses Act,1897, (10 of 1897) or in the General Clauses Act of a State.] 114. Review .Subject as aforesaid, any person considerin g himself aggrieved (a) by a decree or order from which an appeal is allowed by this Code, but from which no appeal has been preferred. (b) by a decree or order from which no appeal is allowed by this Code, or (c) by a decision on a reference from a Court of Small Causes, may apply for a review of judgment to the Court which passed the decree or made the order, and the Court may make such order thereon as it thinks fit. 115. Revision. 4[(1)] The High Court may call for the record of any case which has been decided by any Court subordinate to such High Court and in which no appeal lies thereto, and if such subordinate Court appears 1. Ins. by the A.O. 1937. 2. Subs . by the A.O. 1950, for the former sub-section (1). 3. Added by Act 24 of 1951, s. 2 (w.e.f. 1 -4-1951) . 4. Section 115 re -numbered as sub -section ( 1) by Act 104 of 1976, s. 43 (w.e.f . 1-2-1977). 69 (a) to have exercised a jurisdiction not vested in it by law, or (b) to have failed to exercise a jurisdiction so vested, or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity, the High Court may make such order in the case as it thinks fit: 1[Provided that the High Court shall not, under this section, vary or reverse any order made, or any order deciding an issue, in the course of a suit or other proceeding, except where the order, if it had been made in favour of the party applying for revision would have finally disposed of the suit or other proceedings.] 2[(2) The High Court shall not , under this section, vary or reverse any decree or order against which an appeal lies either to the High Court or to any Court subordinate thereto. 3[(3) A revision shall not operate as a stay of suit or other proceeding before the Court except where such suit or other proceeding is stayed by the High Court.] Explanation. In this section, the expression any case which has been decided includes any order made, or any order deciding an issue in the course of a suit or other proceeding.] STATE AMENDMENT S Orrisa Amendment of section 115 .In the Code of Civil Procedure, 1908 (5 of 1908) for section 115, the following section shall be substituted, namely: 115. Revision. The High Court, in cases arising out of original suits or other proceedings of the value ex ceeding one lakh rupees, and the District Court, in any other case including a case arising out of an original suit or other proceedings instituted before the commencement of the Code of Civil Procedure ( Orissa Amendment) Act, 1991, may call for the rec ord of any case which has been decided by any Court subordinate to the High Court or the District Court, as the case may be, and in which no appeal lies thereto, and if such subordinate Court appears (a) to have failed to exercised a jurisdiction not vested in it by law; or (b) to have failed to exercise a jurisdiction so vested; or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity; the High Court or the District Court, as the case may be, may make such orde r in the case as it thinks fit: Provided that in respect of cases arising out of original suits, or other proceedings of any valuation decided by the District Court, the High Court alone shall be competent to m ake an order under this section: Provided furt her that the High Court or the District Court shall not, under this section, vary or reverse any order, including an order deciding an issue, made in the course of a suit or other proceedings, except where (i) the order, if so varied or reversed, would fi nally dispose of the suit or other proceedings; or (ii) the order, if allowed to stand, would occasion a failure of justice or cause irreparable injury to the party against whom it was made. 1. Subs. by Act 46 of 1999, s.12, for proviso (w.e.f. 1 -7-2002). 2. Ins. by Act 104 of 1976, s. 43 (w.e.f 1 -2-1977). 3. Ins. by Act 46 of 1999, s.12 (w.e.f. 1 -7-2002). 70 Explanation In this section , the expression any case which has been decided includes any order deciding an issue in the course of a suit or other proceeding.. 3. Saving .The amendment made by this Act shall not affect the validity, invalidity, effect or consequence of anything already done or suffered, or any jurisdiction already exercised, and any proceeding instituted or commenced in the High Court under section 115 of the Code of Civil Procedure, 1908 (5 of 1908) prior to the commencement of this Act shall, notwithstanding such amendment , continue to be hea rd and decided by such Court. [Vide the Orissa Act 26 of 1991, s. 2] Amendment of section 115. In the Code of Civil Procedure, 1908 (5 of 1908), for section 115, the following section shall be substituted, namely: 115. Revision .(1) The High Court, in cas es arising out of original suits or other proceedings of the value exceeding five lakhs rupees and the District Court, in any other cases, including a case arising out of an original suit or other proceedings instituted before the commencement of the Code of Civil Procedure ( Orissa Amendment) Act, 2010, may call for the record of any case which has been decided by any Court subordinate to the High Court or the District Court, as the case may be, and in which no appeal lies thereto, and if such subordina te Court appears (a) to have exercised a jurisdict ion not vested in it by law; or (b) to have failed to exercise a jurisdiction so vested; or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity, the High Court or the District Court, as the case may be, may make such order in the case as it thinks fit: Provided that in respect of cases arising out of original suits or other proceedings of any valuation decided by the District Court, the High Court alone shall be com petent to make an order under this section. (2) The High Court or the District Court, as the case may be, shall not under this section, vary or reverse any order, including an order deciding an issue, made in the course of a suit or other proceedings, except where the order, if it had been made in favor of the party applying for revision, would have finally disposed of the suit or other proceedings. (3) A revision shall not operate as a stay of suit or other proceeding before the Court except where such su it or other proceeding is stayed by the High Court or District Court, as the case may be. Explanation In this section, the expression, any case which has been decided includes any order deciding an issue in the course of a suit or other proceeding.. [Vide the Orissa Act 14 of 2010, s. 2] Uttar Pradesh Amendment of section 115 of Act V of 1908. In section 115 of the said Code (i) for the words High Court, wherever occurring, the words High Court or District Court shall be substituted; and (ii) the fo llowing proviso thereto shall be inserted at the end, namely: -- Provide that nothing in this section shall be construed to empower the District Court to call for the record of any case arising out of an original suit of the value of twenty thousand rupee s or above,. [Vide Uttar Pradesh Act 14 of 1970 , s. 3] Uttar Pradesh Substitution of new section for section 115 of 5 of 1908. For section 115 of the Code of Civil 71 Procedur e, 1908, as amended in its application to Uttar Pradesh (hereinafter in this Chapter referred to as the said Code), the following section shall be substituted namely : 115. Revision .The High Court in cases arising out of original suits of the value of rupees twenty thousand and above including such suits instituted before the 20th day of September, 1972, and the District Court in any other case, including a case arising out of an original suit instituted before the 20th day of September, 1972, may call for the record of any case which has been decided by any cou rt subordinate to such High Court or District Court, as the case may be, and in which no appeal lies thereto, and if such subordinate court appears; (a) to have to jgh exercised a jurisdiction not vested in it by law, or (b) to have failed to exercise a jurisdiction so vested, or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity, the High Court or the District Court, as the case may be, may make such order in the case as it thinks fit; Provided t hat in respect of cases decided before the 20th day of September, 1972, and also all cases arising out of original suits of any valuation decided by the District Court, the High Court alone shall be competent to make a order under this section. [Vide Uttar Pradesh Act 19 of 1973, s. 2] Amendment of section 115 of Act V of 1908. In section 115 of the Code of Civil Procedure, 1908 as amended in its application to Uttar Pradesh, hereinafter referred to as

Procedure, 1908 as amended in its application to Uttar Pradesh, hereinafter referred to as the said Code : (i) for the words the High Court or District Court, where they first occur, the words the High Court in cases arising out of original suits of the values of twenty thousand rupees and above, and the District Court in any other case shall be substituted and after the words High Court or District Court where they occur the second time, the commas and words, as the case may be, shall be inserted; (ii) the proviso shall be omitted. [Vide Uttar Pradesh Act 37 of 197 2, s. 6] Uttar Pradesh Substitution of section 115. For section 115 o f the said Code, the following section shall be substituted, namely : 115. Revision .-- The High Court, in cases arising out of original suits or other proceedings of the value of twenty thousand rupees and above, including such suits or other proceedin gs instituted before August 1, 1978, and the District Court in any other case, including a case arising out of an original suit or other proceedings instituted before such date, may call for the record of any case which has been deci ded by any court subordinate to such High Court or District Court as the case may be, and in which no appeal lies thereto, and if such subordinate court appears (a) to have exercised a jurisdiction not vested in it by law ; or (b) to have failed to exercise a jurisdiction so vested ; or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity ; the High Court or the District Court, as the case may be, may make 72 such order in the case as it thinks fit ; Provided that i n respect of cases arising out of original suits or other proceedings of any valuation, decided by the District Court, the High Court alone shall be competent to make an order under this section ; Provided further that the High Court or the District Court shall no under his section, vary or reverse any order including an order deciding an issue, made in the course of a suit or other proceeding, except where, (1) the order, if so varied or reversed, would finally dispose of the suit or other proceed ing ; or (ii) the order, if allowed to stand, would occasion a failure of justice or cause irreparable injury to the party against whom it was made. Explanation In this section, the expression any case which has been decided includes any order deci ding an issue in the course of a suit of other Proceeding. [Vide Uttar Pradesh Act 31 of 1978, s. 3] Uttar Pradesh Amendment of section 115 of Act no. 5 of 1908. In section 115 of the Code of Civil Procedure, 1908, hereinafter int his Chapter refer red to as the said Code, -- (a) for the words of the value of the twenty thousand rupees and above including such suits or other proceedings instituted before August 1, 1978 the following words shall be substituted , namely of the value exceeding one l akh rupees or such higher amount not exceeding five lakh rupees as the High Court may from time to time fix, by notification published in the official Gazette including such suits or other proceedings instituted before the date of commencement of the Uttar Pradesh Civil Laws (Amendment) Act, 1991, or as the case may be, the date of commencement of such notification. ; (b) after the second proviso, the following proviso shall be inserted , namely ; Provided also that where a proceeding of the nature in which the District Court may call for the record and pass orders under this section was pending immediately before the relevant date of commencement referred to above, in the High Court, such court shall proceed to dispose of the same. [Vide Uttar Pradesh Act 17 of 1991, s. 7] Substitution of section 115 of Act no. 5 of 1908. For section 115 of the Code of Civil Procedure, 1908, hereinafter referred to as the principal Act, the following section shall be substituted and be deemed to have been substituted with effect from July 1, 2002, namely : 115. Revision (1) A superior court may revise an order passed in a case decided in an original suit or other proceeding by a subordinate court where no appeal lies agains t the order and where the subordinate court has (a) exercised a jurisdiction not vested in it by law ; or (b) failed to exercise a jurisdiction so vested ; or (c) acted in exercise of its jurisdiction illegally or with material irregularity. (2) A revision applicat ion under sub-section (1), when filed in the High Court, shall contain a certificate on the first page of such application, below the title of the case, to the effect that no revision in the case lies to the district court but lies only to the High 73 Court either because of valuation or because the order sought to be revised was passed by the district court. (3) The superior court shall not, under this section, very or reverse any order made except where, (i) the order, if it had been made in favour of the party applying for revision, would have finally disposed of the suit or other proceeding ; or (ii) the order, if allowed to stand, would occasion a failure of justice or cause irreparable injury to the party against whom it is made. (4) A revision shall not operate as a stay of suit or other proceeding before the court except where such suit or other proceeding is stayed by the superior court. Explanation I In this section, (i) the expression superior court means (a) the district court, where the valuati on of a case decided by a court subordinate to it does not exceed five lakh rupees ; (b) the High Court, where the order sought to be revised was passed in a case decided by the district court or where the value of the original suit or other proceedings in a case decided by a court subordinate to the district court exceed five lakh rupees ; (ii) the expression order includes an order deciding an issue in any original suit or other proceedings. Explanation II. The provisions of this section shall also be applica ble to orders passed, before or after the commencement of this section, in original suits or other proceedings instituted before such commencement. [Vide Uttar Pradesh Act 14 of 2003, s. 2] PART IX SPECIAL PROVISIONS RELATING TO THE 1[HIGH COURTS 2[NOT BE ING THE COURT OF A JUDICIAL COMMISSIONER ] 116. Part to apply only to certain High Courts. This Part applies only to High Courts 7[not being the court of a Judicial Commissioner]. 117. Application of Code to High Courts. Save as provided in this Part or in Part X or in rules, the provisions of this Court shall apply to such High Courts. 118. Execution of decree before ascertai nment of costs. Where any such High Court considers it necessary that a decree passed in the exercise of its original civil jurisdict ion should be executed before the amount of the costs incurred in the suit can be ascertained by taxation, the Court may order that the decree shall be executed forthwith, except as to so much thereof as relates to the costs; and, as to so much thereof as relates to the costs, that the decree may be executed as soon as the amount of the costs shall be ascertained by taxation. 119.Unauthorized persons not to address Court. Nothing in this Code shall be deemed to authorize any person on behalf of another to a ddress the Court in the exercise of its original civil jurisdiction, or to examine witnesses, except where the Court shall have in the exercise of the power conferred by its charter authorized him so to do, or to interfere with the power of the High Court to make rules concerning advocates, vakils and attorneys. 1. Subs. by Act 2 of 1951, s. 14, for CHARTERED HIGH COURTS . 2. Subs. by the Adaptation of Laws (No. 2) Order, 1956 for For Part A States and Part B States . 74 120. Provisions not applicable to High Court in original civil jurisdiction. (1) The following provisions shall not apply to the High Court in the exercise of its original civil jurisdiction, namely , sections 16, 17 and 20. 1* * * * * PART X RULES 121. Effect of rules in First Schedule. The rules in a First Schedule shall have effect as if enacted in the body of this Code until annulled or altered in accordance with the provisions of this Part. 122. Power of certain High Courts to make rules. 2[High Courts 3[not being the Court of a Judicial Commissioner]] 4*** may, from time to time after previous publication, make rules regulating their own procedure and the procedure of the Civil Courts subjects to their superintendence, and may by such rules annul, alter or add to all or any of the rules in the First Schedule. 123. Constitution of Rules Committees in certain States. (1) A Committee, to be called the Rule Committee, shall be constituted at 5[the t own which is the usual place of sitting of each of the High Courts 6*** referred to in section 122]. (2) Each such Committee shall consist of the following persons, namely: (a) three Judges of the High Court established at the town at which such Committee is constituted, one of whom at least has served as a District Judge or 7*** a Divisional Judge for three years, 8[(b) two legal practitioners enrolled in that Court,] 9[(c) a Judge of a Civil Court subordinate to the High Court, 10*** 11* * * * * (3) The members of each Committee shall be appointed by the 12[High Court], which shall also nominate one of their number to be President: 13* * * * * (4) Each member of any such Committee shall hold office for such period as may be prescrib ed by the 8[High Court] in this behalf; and whenever any member retires, resigns, dies or ceases reside in the State in which the Committee was constituted, or becomes incapable of acting as a member of the Committee, the said 8[High Court] may appoint ano ther person to be a member in his stead. (5) There shall be a secretary to each such Committee, who shall be appointed by the 8[High Court] and shall receive such remuneration as may be provided in this behalf 14[by the State Government]. STATE AMENDMENTS Assam. For clause ( a) of sub -section ( 2) of section 123 the following shall be substituted 1. Sub-section (2) rep. by Act 3 of 1909, s. 127 and the Third Sch. 2. Subs. by the A.O. 1950, for Courts which ar e High Courts for the purposes of the Government of India Act, 1935. 3. Subs. by the Adaptation of Laws (No. 2) Order, 1956, for for Part A States and Part B S tates. The words in italics were ins. by Act 2 of 1951, s. 15 (w.e.f. 1 -4-1951) . 4. The words and the Chief Court of Lower Burma rep. by Act 11 of 1923, s. 3 and the Second Sch edule . 5. Subs. by Act 13 of 1916, s. 2 and the Schedule , for each of the to wns of Calcutta, Madras, Bombay, Allahabad, Lahore and Rangoon. 6. The words and of the Chief Court omitted by the Act 11 of 1923, s. 3 and the Second Sch edule. These words were again ins. by Act 32 of 1925, and subsequently omitted by the A.O. 1948. 7. The brackets and words (in Burma) rep. by Act 11 of 1923, s. 3 and the Second Sch edule . 8. Subs. by Act 2 of 1951, s. 16, for cl ause s (b) and (c). 9. Clauses (d) and ( e) re-lettered as cl auses (c) and (d) respectively by s. 16, ibid. (w.e.f. 1 -4-1961 ). 10. The word and omitted by Act 38 of 1978, s. 3 and the Second Sch edule (w.e.f. 26 -11-1978). 11. Clause (d) omitted by s. 3 , ibid. and the Second Sch edule . 12. Subs. by Act 104 of 1976, s. 44, for Chief Justice or Chief Judge (w.e.f. 1 -2-1977). 13. Proviso omitted by s. 44, ibid. (w.e.f. 1 -2-1977). 14. Subs. by

44, ibid. (w.e.f. 1 -2-1977). 14. Subs. by the A.O. 1937, for by the G.G. in C. or by the L.G., as the case may be. 75 (a) three Judges of the High Court established at the town at which such Committee is constituted, provided that the Chief Justice may appoint only two Judges of t he High Court on the Committee if the number of Judges of the High Court does not exceed three. [Vide Assam Act 8 of 1953, sec. 2.] Tamil Nadu Amendment of section 123, Central Act V of 1908 .In section (2) of section 123 of the Code of Civil Procedure, 1908 ( Central Act V of 1908), - (a) in clause (b), for the words two legal practitioners, the words three legal practitioners shall be substituted. (b) in clause (d), the word Madras shall be omitted. [Vide Tamil Nadu Act 15 of 1970, s. 2] 124. Commi ttee to report to High Court. Every Rule Committee shall make a report to the High Court established at the town at which it is constituted on any proposal to annul, alter or add to the rules in the First Schedule or to make new rules, and before making an y rules under section 122 the High Court shall take such report into consideration. 125. Power of other High Courts to make rules. High Courts, other than the Courts specified in section 122, may exercise the powers conferred by that section in such manne r and subject to such conditions 1[as 2[the State Government] may determine :] Provided that any such High Court may, after previous publication, make a rule extending within the local limits of its jurisdiction any rules which have been made by any other H igh Court. 3[126. Rules to be subject to approval. Rules made under the foregoing provisions shall be subject to the previous approval of the Government of the State in which the Court whose procedure the rules regulate is situate or, if that Court is not situate in any State, to the previous approval of 4[Central Government.]] 127. Publication of rules. Rules so made and 5[approved] shall be published in the 6[Official Gazette], and shall from the date of publication or from such other date as may be speci fied have the same force and effect, within the local limits of the jurisdiction of the High Court which made them, as if they had been contained in the First Schedule. 128. Matters for which rules may provide. (1) Such rules shall be not inconsistent with the provisions in the body of this code, but, subject thereto, may provide for any matters relating to the procedure of Civil Courts. (2) In particular, and without prejudice to the generality of the powers conferred by sub -section ( 1), such rules may pro vide for all or any of the following matters, namely: (a) the service of summonses, notices and other processes by post or in any other manner either generally or in any specified areas, and the proof of such service; (b) the maintenance and custody, whil e under attachment, of live -stock and other movable property, the fees payable for such maintenance and custody, the sale of such live -stock and property, and the proceeds of such sale; (c) procedure in suits by way of counterclaim, and the valuation of su ch suits for the purposes of jurisdiction; (d) procedure in garnishee and charging orders either in addition to, or in substitution for, the attachment and sale of debts; (e) procedure where the defendant claims to be entitled to contribution or indemnity over against any person whether a party to the suit or not; (f) summary procedure (i) in suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest, arising 1. Subs. by Act 38 of 1920, s. 2 and the First Sch edule, Pt. I, for as the G.G. in C. may determine. 2. Subs. by the A.O.1937, for in the case of the Court of the Judicial Commissioner of Coorg, the G.G. in C., and, in other cases the L.G. . 3. Subs. by the A.O.1937, for s ection 126. 4. Subs. by the A.O. 1950, for Governor General. 5. Subs. by Act 24 of 1917 , s. 2 and the First Sch edule , for sanctioned. 6. Subs. by the A.O. 1937, for Ga zette of India or in the local O fficial Gazette, as the case may be. Strictly the substitution would read Official Gazette or in the Official Gazette, as the ca se may be, but the latter words have been omitted as being redundant. 76 on a contract e xpress or implied; or on an enactment where the sum sought to be recovered is a fixed sum of money or in the nature of a debt other than a penalty; or on a guarantee, where the claim against the principal is in respect of a debt or a liquidated demand only; or on a trust; or (ii) in suits for the recovery of immovable property, with or without a claim for rent or mesne profits , by a landlord against a tenant whose term has expired or has been duly determined by notice to quit, or has become liable to forefei ture for non -payment of rent, or against persons claiming under such tenant; (g) procedure by way of originating summons; (h) consolidation of suits, appeals and other proceedings; (i) delegation to any Registrar, Prothonotary or Master or other official o f the Court of any judicial, quasi -judicial and non judicial duties; and (j) all forms, registers, books, entries and accounts which may be necessary or desirable for the transaction of the business of Civil Courts. 129. Power of High Courts to make rules as to their original Civil procedure. Notwithstanding anything in this Code, any High Court 1[not being the Court of a Judicial Commissioner] may make such rules not inconsistent with the Letters Patent 2[or order] 3[or other law] establishing it to regula te its own procedure in the exercise of its original civil jurisdiction as it shall think fit, and nothing herein contained shall affect the validity of any such rules in force at the commencement of this Code. 4[130. Powers of other High Courts to make ru les as to matters other than procedure. A High Court 5[not being a High Court to which section 129 applies] may, with the previous approval of the State Government, make with respect to any matter other than procedure any rule which a High Court 6[for a 7*** State] might under 8[article 227 of the Constitution] make with respect to any such matter for any part of the territories under its jurisdiction which is not included within the limits of a presidency town.] 131. Publication of rules. Rules made in acc ordance with section 129 or section 130 shall be published in the 9[Official Gazette] and shall from the date of publication or from such other date as may be specified have the force of law. PART XI MISCELLANEOUS 132. Exemption of certain women from perso nal appearance. (1) Women who, according to the customs and manners of the country, ought not to be compelled to appear in public shall be exempt from personal appearance in Court. (2) Nothing herein contained shall be deemed to exempt such women from arre st in execution of civil process in any case in which the arrest of women is not prohibited by this Code. 133. Exemption of other persons. 10[(1) The following persons shall be entitled to exemption from personal appearance in Court, namely: (i) the Presid ent of India; (ii) the Vice -President of India; (iii) the Speaker of the House of the People; 1. Subs. by the Adaptation of Laws (No. 2) Order, 1956, for for a Part A State or a Part B State. 2. Ins. by the A.O. 1950. 3. Ins. by Act 2 of 1951, s. 17 (w.e.f. 1 -4-1951) . 4. Subs. by the A.O. 1937, for s ection 130. 5. Subs. by the A.O. 1950, for not constituted by His Majesty by Letters Patent. 6. Subs., ibid., for so constituted. 7. The word and letter Part A omitted by the Adaptation of Laws (No. 2) Order, 1956. 8. Subs. by the A.O. 1950, for section 224 of the Government of India Act, 1935. 9. Subs. by the A. O.1937, for Gazette of India or in the Local Official Gazette, as the case may be. Strictly the substitution would read Official Gazette or in the Official Gazette , as the case may be, but the latter words have been omitted as being redundant. 10. Subs. by Act 66 of 1956, s. 12, for sub -section ( 1) (w.e.f. 1 -1-1957) . 77 (iv) the Ministers of the Union; (v) the Judges of the Supreme Court; (vi) the Governors of States and the administrators of Union territories; (vii) the Speakers of the State Legislative Assemblies; (viii) the Chairman of the State Legislative Councils; (ix) the Ministers of States; (x) the Judges of the High Courts; and (xi) the persons to whom section 87B applies.] 1* * * * * (3) Where any person 2*** cl aims the privilege of such exemption, and it is consequently necessary to examine him by commission, he shall pay the costs of that commission, unless the party requiring his evidence pays such costs. 134. Arrest other than in execution of decree. The provisions of sections 55, 57 and 59 shall apply, so far as may be, to all persons arrested under this Code. 135. Exemption from arrest under civil process .(1) No Judge, Magistrate or other judicial officer shall be liable to arrest under civil process while going to, presiding in, or returning from, his Court. (2) Where any matter is pending before a tribunal having jurisdiction therein, or believing in good faith that it has such jurisdiction, the parties thereto, their pleaders, mukhtars, revenue -agents and recognized agents, and their witnesses acting in obedience to a summons, shall be e xempt from arrest under civil process other than process issued by such tribunal for contempt of Court while going to or attending such tribunal for the purpose of such mat ter, and while returning from such tribunal. (3) Nothing in sub -section (2) shall enable a judgment -debtor to claim exemption from arrest under an order for immediate execution or where such judgment -debtor attends to show cause why he should not be commit ted to prison in execution of a decree. 3[135A . Exemption of members of legislative bodies from arrest and detention under civil process .4[(1) No person shall be liable to arrest or detention in prison under civil process (a) if he is a member of (i) either House of Parliament, or (ii) the Legislative Assembly or Legislative Council of a State, or (iii) a Legislative Assembly of a Union territory, during the continuance of any meeting of such House of Parliament or, as the case may be, of the Legislative Assembly or the Legislative Council; (b) if he is a member of any committee of (i) either House of Parliament, or (ii) the Legislative Assembly of a State or Union territory, or (iii) the Legislative Council of a State, during the continuance of any mee ting of such committee; (c) if he is a member of (i) either House of Parliament, or 1. Sub -section ( 2) omitted by Act 66 of 19 56, s. 12 (w.e.f. 1 -1-1957) . 2. The words so exempted omitted by s. 12, ibid. 3. Ins. by Act 23 of 1925, s. 3. 4. Subs. by Act 104 of 1976, s. 45, for sub -section (1) (w.e. f. 1-2-1977). 78 (ii) a Legis lative Assembly or Legislative Council of a State having both such Houses, during the continuance of a joint sitting, meeting, conference or joint committee of the Houses of Parliament or, Houses of the State Legislature, as the case may be, and during the forty days before and after such meeting, sitting or conference.] (2) A person released from detention under sub -section ( 1) shall, subject to the provision s, of the said sub-section, be liable to re -arrest and to the further detention to which he would have been liable if he had not been released under the provis ions of sub -section ( 1).] 136. Procedure where person to be arrested or property to be attached is outside district. (1) Where an application is made that any person shall be arrested or that any property shall be attached under any provision of this Code not relating to the execution of decrees, and such person resides or such property is situate ou tside the local limits of the jurisdiction of the Court to which the application is made, the Court may, in its discretion, issue, a warrant of arrest of make an order of attachment, and send to the District Court within the loca l limits of whose jurisdict ion such person or property resides or is situate a copy of the warrant or order, together with the probable amount of the costs of the arrest or attachment. (2) The District Court shall, on receipt of such copy and amount, cause the arrest or attachment t o be made by its own officers, or by a Court subordinate to itself, and shall inform the Court which issued or made such warrant or order of the arrest or attachment. (3) The Court making an arrest under this section shall send the person arrested to the C ourt by which the warrant of arrest was issued, unless he shows cause to the satisfaction of the former Court why he should not be sent to the later Court, or unless he furnishes sufficient security for his appearance before the later Court or for satisfyi ng any decree that may be passed against him by that Court, in either of which cases the Court making the arrest shall release him. (4) Where a person to be arrested or movable property to be attached under this section is within the local limits of the or dinary original civil jurisdiction of the High Court of Judicature at Fort William in

attached under this section is within the local limits of the or dinary original civil jurisdiction of the High Court of Judicature at Fort William in Bengal or at Madras or at Bombay, 1*** the copy of the warrant of arrest or of the order of attachment, and the probable amount of the costs of the arrest or attachment, shall be sent to the Court of Small - Causes of Calcutta, Madras 2[or Bombay], as the case may be, and that Court, on receipt of the copy and amount, shall proceed as if it were the District Court. 137. Language of subordinate Courts. (1) The language which, on the commencement of this Code, is the language of any Court subordinate to a High Court shall continue to be the language of such subordinate Court until the State Government otherwise directs. (2) The State Government may declare what shall be the lan guage of any such Court and in what character applications to and proceedings in such Courts shall be written. (3) Where this Court requires or allows anything other that the recording of evidence to be done in writing in any such Court, such writing may b e in English; but if any party or his pleader is unacquainted with English a translation into the language of the Court shall, at his request, be supplied to him; and the Court shall make such order as it thinks fit in respect of the payment of the costs o f such translation. STATE AMENDMENT Rajasthan Amendment of section 137, Central Act V of 1908. -In section 137 of the Code of Civil Procedure, 1908 (Central Act V of 1908), in its application to the State of Rajasthan, for sub -section (3), the following s ub-section shall be substituted, namely: - "(3) Wherever this Code requires or allows anything other than the recording of evidence to be done in writing in any such court, such writing shall be in Hindi in Devnagri Script with the interna - tional form of In dian numerals : Provided that the court may in its discretion accept such writing in Eng lish on the undertaking of the party filing such writing, to file a Hindi translation of the same, within such time as may be granted by the court and the opposite par ty shall have a right to have a copy of such writing in Hindi." [Vide Rajasthan Act 7 of 1983, s. 2] 3[138. Power of High Court to require evidence to be recorded in English. (1) The 4[High Court] may, by notification in the Official Gazette, direct with r espect to any Judge specified in the 1. The words or of the Chief Court of Lower Burma, omitted by the A.O. 1937. 2. Subs. by the A.O. 1937 , for Bombay or Rang oon. 3. For s. 138, as applicable to Assam, see the Civil Procedure (Assam Amendment) Act 1941, (Assam 1 of 1941), s. 2. 4. Subs. by Act 4 of 1914, s. 2 and the Schedule, Pt. I , for L.G.. 79 notification, or falling under a description set forth therein, that evidence in cases in which an appeal is allowed shall be taken down by him in the English language and in manner prescribed. (2) Where a Judge is prev ented by any sufficient reason from complying with a direction under sub-section ( 1), he shall record the reason and cause the evidence to be taken down in writing from his dictation in open Court. 139. Oath on affidavit by whom to be administered. In the case of any affidavit under this Code (a) any Court or Magistrate, or 1[(aa) any notary appointed under the Notaries Act, 1952 (53 of 1952); or] (b) any officer or other person whom a High Court may appoint in this behalf , or (c) any officer appoin ted by any other Court which the State Government has generally or specially empowered in this behalf, may administer the oath to the deponent. STATE AMENDMENT Uttar Pradesh Amendment of section 139 of Act no. 5 of 1908. In section 139 of the Code of Civ il Procedure, 1908, for clauses (b) and (c), the following shall be substituted and be deemed always to have been substituted, namely : (b) any person appointed in this behalf by a High Court or by a District Court ; or (c) any person appointed in this behalf by such other Court as the State Government may, by general or special order, empower in this behalf ; [Vide Uttar Pradesh Act 11 of 1981, s. 2] 140. Assessors in causes of salvage, etc. (1) In any admiralty or vice -admiralty cause of sal vage to wage or collision the Court, whether it be exercising its original or its appellate jurisdiction, may, if it thinks fit, and shall upon request of either party to such cause, summon to its assistance, in such manner as it may direct or as may be pr escribed, two competent assessors; and such assessors shall attend and assist accordingly. (2) Every such assessor shall receive such fees for his attendance, to be paid by such of the parties as the Court may direct or as may be prescribed. 141. Miscellan eous proceedings. The procedure provided in this Code in regard to suit s shall be followed, as far as it can be made applicable, in all proceedings in any Court of c ivil jurisdiction. 2[Explanation. In this section, the expression proceedings includes p roceedings under Order IX, but does not include any proceedings under article 226 of the Constitution.] 142. Orders and notices to be in writing. All orders and notices served on or given to any person under the provision s of this Code shall be in wri ting. 143. Postage. Postage, where chargeable on a notice, summons or letter issued under this Code and forwarded by post, and the fee for registering the same, shall be paid within a time to be fixed before the communication is made: Provided that the Sta te Government 3*** may remit such postage, or fee, or both, or may prescribe a scale of court -fees to be levied in lieu thereof . 144. Application for restitution. (1) Where and in so far as a decree 4[or an order] is 5[varied or reversed in any appeal, rev ision or other proceeding or is set aside or modified in any suit instituted for the purpose, the Court which passed the decree or order] shall, on the application of any party entitled to any benefit by way of restitution or otherwise, cause such restitut ion to be made as will, so far as may be, place the parties in the position which they would have occupied but for such decree 4[or order] or 6[such part thereof as has been varied, reversed, set aside or modified]; and for this purpose, the Court may make any orders, including orders for the refund of costs and for the payment of interest, damages, compensation and mesne profits , which are properly 7[consequential on such variation, reversal, setting aside or modification of the decree or order]. 1. Ins. by Act 104 of 1976, s. 46 (w.e.f. 1 -2-1977). 2. Ins. by s. 47, ibid. (w.e.f 1 -2-1977). 3. The words with the previous sanction of the G.G, in C. omitted by Act 38 of 1920, s . 2 and the First Sch edule I, Pt. I 4. Ins. by Act 66 of 1956, s. 13 (w.e.f. 1 -1-1957) . 5. Subs. by Act 104 of 1976. s. 48, for varied o r reversed, the Court of first instance (w.e.f. 1 -2-1977). 6. Subs. by s. 48, ibid., for such part thereof as has been varied or reversed (w.e.f. 1 -2-1977). 7. Subs. by s. 48, ibid., for consequential on such variation or reversal (w.e.f. 1 -2-1977). 80 1[Explana tion.For the purposes of sub -section ( 1), the expression Court which passed the decree or order shall be deemed to include, (a) where the decree or order has been varied or reversed in exercise of appellate or revisional jurisdiction, the Court of firs t instance; (b) where the decree or order has been set aside by a separate suit, the court of first instance which passed such decree or order. (c) where the Court of first instance has ceased to exist or has ceased to have jurisdiction to execute, it, the Court which, if the suit wherein the decree or order was passed were instituted at the time of making the application for restitution under this section, would have jurisdiction to try such suit.] (2) No suit shall be instituted for the purpose of obtaini ng any restitution or other relief which could be obtained by application under sub -section ( 1). 145. Enforcement of liability of surety. Where any person 2[has furnished security or given a guarantee] (a) for the performance of any decree or any part the reof, or (b) for the restitution of any property taken in execution of a decree, or (c) for the payment of any money, or for the fulfilment of any condition imposed on any person, under an order of the Court in any suit or in any proceeding consequent ther eon, 3[the decree or order may be executed in the manner therein provided for the execution of decrees, namely: (i) if he has rendered himself personally liable, against him to that extent; (ii) if he has furnished any property as security, by sale of su ch property to the extent of the security; (iii) if the case falls both under clauses (i) and (ii) then to the extent specified in those clauses, and such person shall, be deemed to be a party within the meaning of section 47]: Provided that such notice as the Court in each case thinks sufficient has been given to the surety. 146. Proceedings by or against representatives. Save as otherwise provided by this Code or by any law for the time being in force, where any proceeding may be taken or application made by or against any person then the proceeding may be taken or the application may be made by or against any person claiming under him. 147. Consent or agreement by persons under disability. In all suits to which any person under disability is a party, any consent or agreement, as to any proceeding shall, if given or made with the express leave of the Court by the next friend or guardian for the suit, have the same force and effect as if such person, were under no disability and had given such consent or mad e such agreement. 148. Enlargement of time. Where any period is fixed or granted by the Court for the doing of any act prescribed or allowed by this Code, the Court may, in its discretion, from time to time, enlarge such period, 4[not exceeding thirty days in total,] even though the period originally fixed or granted may have expired. 5[148A. Right to lodge a caveat. (1) Where an application is expected to be made, or has been made, in a suit or proceeding instituted, or about to be instituted, in a Court, any person claiming a right to appear before the Court on the hearing of such application may lodge a caveat in respect thereof. (2) Where a caveat has been lodged under sub -section ( 1), the person by whom the caveat has been lodged (hereinafter referred t o as the caveator) shall serve a notice of the caveat by registered post, 1. Ins. by Act 104 of 1976, s. 48 (w.e.f. 1 -2-1977). 2. Subs. by s. 49, ibid., for has become liable as surety (w.e.f. 1 -2-1977). 3. Subs. by s. 49, ibid., for certain words (w.e.f. 1 -2-1977). 4. Ins. by Act 46 of 1999, s. 13 (w.e.f. 1 -7-2002). 5. Ins. by Act 104 of 1976, s. 50 (w.e.f. 1 -5-1977). 81 acknowledgem ent due, on the person by whom the application has been, or is expected to be, made, under sub-section ( 1). (3) Where, after a caveat has been lodged under sub -section ( 1), any application is filed in any suit or proceeding, the Court, shall serve a notice of the application on the caveator. (4) Where a notice of any caveat has been served on the applicant, he shall forthwith furnish the caveator at the caveators expense , with a copy of the application made by him and also with copies of any paper or document which has been, or may be, filed by him in support of the application. (5) Where a caveat has been lodged under sub -section ( 1), such caveat shall not remain in forc e after the expiry of ninety days from the date on which it was lodged unless the application referred to in sub-section ( 1) has been made before the expiry of the said period.] 149. Power to make up deficiency of court -fees.Where the whole or any part of any fee prescribed for any document by the law for the time being in force relating to court -fees has not been paid, the Court may, in its discretion, at any stage, allow the person, by whom such fee is payable, to pay the whole or part, as the case may be, of such court -fee; and upon such payment the document, in respect of which fee is payable, shall have the same force and effect as if such fee had been paid in the first instance. 150. Transfer of business. Save as otherwise provided, where the busin ess of any Court is transferred to any other Court, the Court to which the business is so transferred shall have the same powers and shall perform the same duties as those respectively conferred and imposed by or under this Code upon the Court from which t he business was so transferred. 151. Saving of inherent powers of Court. Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse o f the process of the Court. 152. Amendment of judgments, decrees or orders. Clerical or arithmetical mistakes in judgments, decrees or orders or errors arising therein from any accidental slip or omission may at any

ical mistakes in judgments, decrees or orders or errors arising therein from any accidental slip or omission may at any time be corrected by the Court either of its own motion or on the application of any of the parties. 153. General power to amend. The Court may at any time, and on such terms as to costs or otherwise as it may think fit, amend any defect or error in any proceeding in a suit; and all necessary a mendments shall be made for the purpose of determining the real question or issue raised by or depending on such proceeding. 1[153A. Power to amend decree or order where appeal is summarily dismissed. Where an Appellate Court dismisses an appeal under rule 11 of Order XLI, the power of the Court to amend, under section 152, the decree or order appealed against may be exercised by the Court which had passed the decree or order in the first instance, notwithstanding that the dismissal of the appeal has the ef fect of confirming the decree or order, as the case may be, passed by the Court of first instance. 153B. Place of trial to be deemed to be open Court. The place in which any Civil Court is held for the purpose of trying any suit shall be deemed to be an op en Court, to which the public generally may have access so far as the same can conveniently contain them: Provided that the presiding Judge may, if he thinks fit, order at any stage of any inquiry into or trial of any particular case, that the public gener ally, or any particular person, shall not have access to, or be or remain in, the room or building used by the Court.] 154. [Saving of present right of appeal. ] Rep. by the Repealing and Amending Act, 1952 (48 of 1952 ), s. 2 and the First Sch edule . 155. [Amendment of certain Acts. ] Rep. by s. 2 and the First Sch edule ., ibid. 156. [Repeals. ] Rep. by the Second Repealing and Amending Act, 1914 (17 of 1914). s. 3 and the Second Schedule . 157. Continuance of orders under repealed enactments. Notification s publi shed, declarations and rules made, place s appointed, agreements filed, scales prescribed, forms framed, appointments made and powers conferred under Act VIII of 1859 or under any Code of Civil Procedure or any Act amending the same or under any other enact ment hereby repealed shall, so far as the y are consistent with this Code, 1. Ins. by Act 104 of 1976. s. 51 (w.e.f. 1 -2-1977). 82 have the same force and effect as if they had been respectively published, made, appointed, filed, prescribed, framed and conferred under this Code and by the authority empowered the reby in such behalf. 158. Reference to Code of Civil Procedure and other repealed enactments. In every enactment or notification passed or issued before the commencement of this Code in which reference is made to or to any Cha pter or section of Act VIII of 1859 or any Code of Civil Procedure or any Act amending the same or any other enactment hereby repealed, such reference shall, so far as may be practicable, be taken to be made to this Code or to its corresponding Part, Order, section or rule. ______ 83 THE FIRST SCHEDULE _____ ORDER I Parties to Suits 1[1. Who may be joined as plaintiffs. All persons may be joined in one suit as plaintiffs where (a) any right to relief in respect of, or arising out of , the same act or transaction or series of acts or transactions is alleged to exist in such persons, whether jointly, severally or in the alternative; and (b) if such persons brought separate suits, any common question of law or fact would arise. ] 2. Power of Court to order separate trial. Wher e it appears to the Court that any joinder of plaintiffs may embarrass or delay the trial of the suit, the Court may put the plaintiffs to th e election or order separate trials or make such other order as may be expedient. 1[3. Who may be joined as defendants. All persons may be joined in one suit as defendants where (a) any right to relief in respect of , or arising out of , the same act or transaction or series of acts or transactions is alleged to exist agai nst such persons , whether jointly , severally or in the alter native ; and (b) if separate suits were brought against such persons, any common question of law or fact would arise. ] 2[3A. Power to order separate trials where joinder of defendants may embarrass or delay trial. Where it appears to the Court that any joi nder of defendants may embarrass or delay the trial of the suit, the Court may order separate trials or make such other order as may be expedient in the interests of justice. ] 4. Court may give judgment for or against one or more of joint parties. Judgmen t may be given without any amendment (a) for such one or more of the plaintiffs as may be found to be entitled to relief , for such relief as he or they may be entitled to; (b) against such one or more of the defendants as may be found to be liable , accor ding to their respective liabilities. 5. Defendant need not be interested in all the relief claimed. It shall not be necessary that every defendant shall be interested as to all the relief claimed in any suit against him. 6. Joinder of parties liable on sa me contract. The plaintiff may, at his option, join as parties to the same suit all or any of the persons severally, or jointly and severally, liable on any one contract, including parties to bills of exchange, hundis and promissory notes. 7. When plaintif f in doubt from whom redress is to be sought. Where the plaintiff is in doubt as to the persons from whom he is entitled to obtain redress, he may join two or more defendants in order that the question as to which of the defendants is liable, and to what e xtent, may be determined as between all parties. 1. Subs. by Act 104 of 1976, s. 52, for rules 1 and 3 respectively (w.e.f. 1 -2-1977). 2. Ins. by s. 52, ibid. (w.e.f. 1 -2-1977). 84 1[8. One person may sue or defend on behalf of all in same interest. (1) Where there are numerous persons having the same interest in one suit, (a) one or more of such persons may, with the permission of t he Court, sue or be sued, or may defend such suit, on behalf of, or for the benefit of, all persons so interested; (b) the Court may direct that one or more of such persons may sue or be sued, or may defend such suit, on behalf of, or for the benefit of, a ll persons so interested. (2) The Court shall, in every case where a permission or direction is given under sub -rule (1), at the plaintiff's expense, give notice of the institution of the suit to all persons so interested, either by personal service, or, w here, by reason of the number of persons or any other cause, such service is not reasonably practicable, by public advertisement, as the Court in each case may direct. (3) Any person on whose behalf, or for whose benefit, a suit is instituted, or defended, under sub-rule ( 1), may apply to the Court to be made a party to such suit. (4) No part of the claim in any such suit shall be abandoned under sub -rule (1), and no such suit shall be withdrawn under sub -rule (3), of rule 1 of Order XXIII, and no agreement, compromise or satisfaction shall be recorded in any such suit under rule 3 of that Order, unless the Court has given, at the plaintiff's expense, notice to all persons so interested in the manner specified in sub -rule (2). (5) Where any p erson suing or defending in any such suit does not proceed with due diligence in the suit or defence, the Court may substitute in his place any other person having the same interest in the suit. (6) A decree passed in a suit under this rule shall be bindin g on all persons on whose behalf, or for whose benefit, the suit is instituted, or defended, as the case may be. Explanation. For the purpose of determining whether the persons who sue or are sued, or defend, have the same interest in one suit, it is not n ecessary to establish that such persons have the same cause of action as the persons on whose behalf, or for whose benefit, they sue or are sued, or defend the suit, as the case may be.] 2[8A. Power of Court to permit a person or body of persons to present opinion or to take part in the proceedings. While trying a suit, the Court may, if satisfied that a person or body of persons is interested in any question of law which is directly and substantially in issue in the suit and that it is necessary in the pu blic interest to allow that person or body of persons to present his or its opinion on that question of law, permit that person or body of persons to present such opinion and to take such part in the proceedings of the suit as the Court may specify.] 9. Mi sjoinder and non -joinder. No suit shall be defeated by reason of the misjoinder or non-joinder of parties, and the Court may in every suit deal with the matter in controversy so far as regards the rights and interests of the parties actually before it: 3[Provided that nothing in this rule shall apply to non -joinder of a necessary party.] 10. Suit in name of wrong plaintiff. (1) Where a suit has been instituted in the name of the wrong person as plaintiff or where it is doubtful wheth er it has been instituted in the name of the right plaintiff , the Court may at any stage of the suit, if satisfied that the suit has been instituted through a bona fide mistake , and that it is necessary for the determination of the real matter in dispute s o to do, order any other person to be substituted or added as plaintiff upon such terms as the Court thinks just. (2) Court may strike out or add parties. The Court may at any stage of the proceedings, either upon or without the application of either party , and on such terms as may appear to the Court to be just, order that the name of any party improperly joined, whether as plaintiff or defendant, be struck out, and that the name of any person who ought to have been join ed, whether as plaintiff or defendan t, or whose 1. Subs. by Act 104 of 1976, s. 52, for rule 8 (w.e.f. 1 -2-1977). 2. Ins. by s. 52, ibid. (w.e.f. 1 -2-1977). 3. The proviso added by, ibid., s. 52 (w.e.f. 1 -2-1977). 85 presence before the Court may be necessary in order to enable the Court effectually and completely to adjudicate upon and settle all the questions involved in the suit, be added. (3) No person shall be added as a plaintiff suing without a next friend or as the next friend of a plaintiff under any disability without his consent. (4) Where defendant added, plaint to be amended. Where a defendant is added , the plaint shall, unless the Court otherwise directs, be amended in such manner as may be nec essary, and amended copies of the summons and of the plaint shall be served on the new defendant and , if the Court thinks fit , on the original defendant (5) Subject to the provisions of the 1[Indian Limitation Act, 1877 (XV of 1877)] , section 22, the proce edings as against any person added as defendant shall be deemed to have begun only on the service of the summons. 2[10A. Power of Court to request any pleader to address it. The Court may, in its discretion , request any pleader to address it as to any inte rest which is likely to be affected by its decision on any matter in issue in any suit or proceeding, if the party having the interest which is likely to be so affected is not represented by any pleader.] 11. Conduct of suit. The Court may give the conduct of 3[a suit] to such persons as it deems proper. 12. Appearance of one of several plaintiffs or defendants for others. (1) Where there are more plaintiffs than one , any one or more of them may be authorized by any other of them to appear , plead or act for such other in any proceeding; and in like manner, where there are more defendants than one , any one or more of them may be authorized by any other of them to appear , plead or act for such other in any proceeding. (2) The authority shall be in writing sign ed by the party giving it and shall be filed in Court. 13. Objections as to non -joinder or misjoinder. All objections on the ground of non -joinder or misjoinder of parties shall be taken at the earliest possible oppo rtunity and , in all cases where issues a re settled , at or before such settlement, unless the ground of objection has subsequently arisen , and any such objection not so taken shall be deemed to have been waived. ______ ORDER II Frame of suit 1. Fra me of suit. Every suit shall as far as practicabl e be framed so as to afford ground for final decision upon the subjects in dispute and to prevent further litigation concerning them. 2. Suit to include the whole claim. (1) Every suit shall include the whole of the claim which the plaintiff is entitled to make in r espect of the cause of action; but a plaintiff may relinquish and portion of his claim in order to bring the suit within the jurisdiction of any Court. (2) Relinquishment of part of claim. Where a plaintiff omits to sue in respect of, or intentio nally relinquishes, any portion of his claim, he shall not afterwards sue in respect of the portion so omitted or relinquished. (3) Omission to sue for one of several reliefs. A person entitled to more than one relief in respect of the same cause of action may sue for all or any of such reliefs; but if he omits, except with the leave of the Court, to sue for all such reliefs, he shall not afterwards sue for any relief so omitted. Explanation .For the purposes of this rule an obligation and a collateral secu rity for its performance and successive claims arising under the same obligation shall be deemed respectively to constitute but one cause of action. 1. See now the Limitation Act, 1963 (36 of 1963), s. 21. 2. Ins. by Act 104 of 1976, s. 52 (w.e.f. 1 -2-1977). 3. Subs . by s. 52, ibid., for the suit (w.e.f. 1 -2-1977).

s . by s. 52, ibid., for the suit (w.e.f. 1 -2-1977). 86 Illustration A lets a house to B at a yearly of rent Rs. 1 ,200. The rent for the whole of the years 1905, 1906 and 1907 is due and unpaid. A sues B in 1908 only for the rent due for 1906. A shall not afterwards sue B for the rent due for 1905 or 1907. 3. Joinder of causes of action. (1) Save as otherwise provided, a plaintiff may unite in the same suit several causes of action against the same defendant, or the same defendants jointly; and any plaintiffs having causes of action in which they are jointly interested against the same defendant or the same defendants jointly may unite such causes of action in the s ame suit. (2) Where causes of action are united, the jurisdiction of the Court as regards the suit shall depend on the amount or value of the aggregate subject -matters at the date of instituting the suit. 4. Only certain claims to be joined for recovery of immovable property. No cause of action shall, unless with the leave of the Court, be joined with a suit for the recovery of immovable property, except (a) claims for mesne profits or arrears of rent in respect of the property claimed or any part thereof ; (b) claims for damages for breach of any contract under which the property or any part thereof is held; and (c) claims in which the relief sought is based on the same cause of action: Provided that nothing in this rule shall be deemed to prevent any part y in a suit for foreclosure or redemption from asking to be put into possession of the mortgaged property. 5. Claims by or against executor, administrator or heir. No claim by or against an executor, administrator or heir, as such, shall be joined with cla ims by or against him personally, unless the last mentioned claims are alleged to arise with reference to the estate in respect of which the plaintiff or defendant sues or is sued as executor, administrator or heir, or are such as he was entitled to, or li able for, joint ly with the deceased person whom he represents. 1[6. Power of Court to order separate trials. Where it appears to the Court that the joinder of causes of action in one suit may embarrass or delay the trial or is otherwi se inconvenient, the C ourt may order separate trials or make such other order as may be expedient in the interests of justice.] 7. Objections as to misjoinder. All objections on the ground of misjoinder of causes of action shall be taken at the earliest possible opportunity and , in all cases where issues are settled, at or before such settlement , unless the ground of objection has subsequently arisen, and any such objection not so taken shall be deemed to have been waived. STATE AMENDMENT Uttar Pradesh Amendment of the First Schedule Order II. In the First Schedule to the principal Act (hereinafter in this Chapter referred to as the First Schedule), in Order II, in rule 2 (a) the existing explanation shall be numbered as Explanation I, and after Explanation I, as so numbere d the following explanation II, shall be inserted, namely : Explanation II For the purpose of this rule a claim for ejectment of the defendant from immovable property let out to him and a claim for money due from him on account of rent or compens ation for use and occupation of that property, shall be deemed to be claims in respect of distinct causes of action.; (b) for the illustration, the following illustration shall be substituted, namely : Illustration A lets immovable property to B at a yearly rent. The rent for the whole of the years 1905, 1906 and 1907 is due and unpaid, and the tenancy is determined before A sues Bin 1908, only for the rent due for 1906. A may afterwards sue B for ejectment but not for the rent due for 1905 or 1907. [Vide Uttar Pradesh Act 57 of 1976, s. 4] 1. Subs. by Act 104 of 1976, s. 53, for rule 6 (w.e.f. 1 -2-1977). 87 ______ ORDER II I Recognized Agents and Pleaders 1. Appearances, etc., may be in person, by recognized agent or by pleader. Any appearance, application or act in or to any Court, required or authorized by law to be made or done by a party in such Court, may, except where otherwise expressly provided by any law for the time being in force, be made or done by the party in person, or by his recognized agent, or by a pleader 1[appearing, applying or acting, as the case may be,] on his behalf : Provided that any such appearance shall, if the Court so directs, be made by the party in person. 2. Recogni sed agents. The recogni sed agents of parties by whom such appearances, applications and acts may be made or done a re (a) persons holding powers -of-attorney, authori sing them to make and do such appearances, applications and acts on behalf of such parties; (b) persons carrying on trade or business for and in the names of parties not resident within the local limits o f the jurisdiction of the Court within which limits the appearance, application or act is made or done, in matters connected with such trade or business only, where no other agent is expressly authori sed to make and do such appearances, applications and ac ts. 3. Service of process on recogni sed agent. (1) Process es served on the recogni sed agent of a party shall be as effectual as if the same had been served on the party in person, unless the Court otherwise directs. (2) The provisions for the service of pr ocess on a party to a suit shall apply to the service of process on his recogni sed agent. 2[4. Appointment of pleader. (1) No pleader shall act for any person in any Court, unless he has been appointed for the purpose by such person by a document in writin g signed by such person or by his recogni sed agent or by some other person du ly authori sed by or under a power -of-attorney to make such appointment. (2) Every such appointment shall be 3[filed in Court and shall, for the purposes of sub -rule (1), be] deeme d to be in force until determined with the leave of the Court by a writing signed by the client or the pleader , as the case may be, and filed in Court, or until the client or the pleader dies, or until all proceedings in the suit are ended so far as regard s the client. 4[Explanation. For the purposes of this sub -rule, the following shall be deemed to be proceedings in the suit, (a) an application for the review of decree or order in the suit, (b) an application under section 144 or under section 152 of t his Code, in relation to any decree or order made in the suit , (c) an appeal from any decree or order in the suit, and (d) any application or act for the purpose of obtaining copies of documents or return of documents produced or filed in the suit or of ob taining refund of moneys paid into the Court in connection with the suit.] 5[(3) Nothing in sub -rule (2) shall be construed (a) as extending, as between the pleader and his client, the duration for which the pleader is engaged, or 1. Subs. by Act 22 of 1926, s. 2, for duly appointed to act. 2. Subs. by Act 22 of 1926 , s. 2, for rule 4. 3. Subs. by Act 104 of 1976, s. 54, for certain words (w.e.f. 1 -2-1977). 4. Ins. by s. 54, ibid. (w.e.f. 1 -2-1977). 5. Subs. by s. 54, ibid., for sub -rule ( 3) (w.e.f. 1 -2-1977). 88 (b) as authorising serv ice on the pleader of any notice or document issued by any Court other than the Court for which the pleader was engaged, except where such service was expressly agreed to by the client in the document referred to in sub -rule ( 1).] (4) The High Court may, b y general order, direct that, where the person by whom a pleader is appointed is unable to write his name, his mark upon the document appointing the pleader shall be attested by such person and in such manner as may be specified by the order. (5) No pleade r who has been engaged for the purpose of pleading only shall plead on behalf of any party, unless he has filed in court a memorandum of appearance signed by himself and stating (a) the names of the parties to the suit, (b) the name of the party for whom he appears, and (c) the name of the person by whom he is authorised to appear: Provided that nothing in this sub -rule shall apply to any pleader engaged to plead on behalf of any party by any other pleader who has been duly appointed to act in Court on be half of such party.] 5. Service of process on pleader. 1[Any process served on the pleader who has been duly appointed to act in Court for any party] or left at the office or ordinary residence of such pleader, and whether the same is for the personal appe arance of the party or not, shall be presumed to be duly communicated and made known to the party whom the pleader represents, and, unless the Court otherwise directs, shall be as effectual for all purposes as if the same had been given to or served on the party in person. 6. Agent to accept service. (1) Besides the recogni sed agents described in rule 2 any person residing within the jurisdiction of the Court may be appointed an agent to accept service of process. (2) Appointment to be in writing and to be filed in Court. Such appointment may be special or general and shall be made by an instrument in writing signed by the principal, and such instrument or, if the appointment is general, a certified copy thereof shall be filed in Court. 2[(3) The Court may, at any stage of the suit, order any party to the suit not having a recognised agent residing within the jurisdiction of the Court, or a pleader who has been duly appointed to act in the Court on his behalf, to appoint, within a specified time, an agent res iding within the jurisdiction of the Court to accept service of the process on his behalf.] ______ ORDER IV Institution of suits 1. Suit to be commenced by plaint. (1) Every suit shall be instituted by presenting 3[plaint in duplicate to the Court] or such officer as it appoints in this behalf. (2) Every plaint shall comply with the rules contained in Orders VI and VII, so far as they are applicable. 4[(3) The plaint shall not be deemed to be duly instituted unless it complies with the requirements specifie d in sub -rules ( 1) and (2)]. 2. Register of suits. The Court shall cause the particulars of every suit to be entered in a book to be kept for the purpose and called the register of civil suits. Such entries shall be numbered in every year according to the order in which the plaints are admitted. 1. Subs. by Act 104 of 1976, s. 54, for certain words (w.e.f. 1 -2-1977). 2. Ins. by s. 54, ibid. (w.e.f. 1-2-1977). 3. Subs. by Act 46 of 1999, s. 14, for certain words (w.e.f. 1 -7-2002). 4. Ins. by s. 14, ibid. (w.e.f. 1 -7-2002). 89 STATE AMENDMENT Uttar Pradesh Insertion of Order IV-A.In the First Schedule, after Order IV, the following Order shall be inserted , namely : ORDER IV-A CONSOLIDATION OF CASES 1. Consolidation of suits and proceedings When two or more suits or proceedings are pending in the same court, and the court is of opinion that it is expedient in the interest of justice, it may by order direct their joint trial, whereupon all such suits and proceedings may be decided upon the evidence in all or any such suits or proceedings. [Vide Uttar Pradesh Act 57 of 1976, s. 5] Amendment of Order VI. In the First Schedule, in Order VI, in rule 15, in sub -rule (1), for the words at the foot, the following words shall be substituted, namely : on oath administered by an officer empowered under section 139 of the Code,. [Vide Uttar Pradesh Act 57 of 1976, s. 6] ______ ORDER V Issue and service of summons Issue of Summons 1. Summons. 1[(1) When a suit has be en duly instituted, a summons may be issued to the defendant to appear and answer the claim and to file the written statement of his defence, if any, within thirty days from the date of service of summons on that defendant: Provided that no such summons sh all be issued when a defendant has appeared at the presentation of plaint and admitted the plaintiff s claim: *[Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the Court, for reasons to be recorded in writing and on payment of such costs as the Court deems fit, but which shall not be later than one hundred twenty days from the date of service of sum mons and on expiry of one hundred twenty days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the Court shall not allow the written statement to be taken on record.] (2) A defendant to whom a sum mons has been issued under sub -rule (1) may appear (a) in person, or (b) by a pleader duly instructed and able to answer all material questions relating to the suit, or (c) by a pleader accompan ied by some person able to answer all such questions. (3) Every such summons shall be signed by the Judge or such officer as he appoints, and shall be

all such questions. (3) Every such summons shall be signed by the Judge or such officer as he appoints, and shall be sealed with the seal of the Court. STATE AMENDMENT Jammu and Kashmir and Ladakh (UTs) . In Order V, in Rule 1, for the second proviso, substitute the following provi so, namely; - Provided further that where the defendant fails to file the written statement within the said period of thirty days, he shall be allowed to file the written statement on such other day, as may be specified by the 1. Subs. by Act 22 of 2002, s. 6, for sub -rule ( 1) (w.e.f. 1 -7-2002). *. Shall be applicable to commercial disputes of a specified value only by Act 4 of 2016, s. 16 and the Schedule (w.e.f. 23 -10- 2015). 90 court, for reasons to be recor ded in writing and on payment of such costs as the court deems fit, but which shall not be later than one hundred twenty days from the date of service of summons and on expiry of one hundred twenty days from the date of service of summons, the defendant sh all forfeit the right to file the written statement and the court shall not allow the written statement to be taken on record . [Vide the Jammu and Kashmir Reorgani sation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18 -3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws ) Order, 2020, Notification No. S.O . 3774(E), dated (23-10-2020)]. 1[2. Copy of plaint annexed to summons. Every summon shall be accompan ied by a copy of the plaint.] 3. Court may order defendant or plaintiff to appear in person. (1) Where the court sees reason to require the personal appearance of the defendant, the summons shall order him to appear in person in Court on the day therein specified. (2) Where the Court sees reas on to require the personal appearance of the plaintiff on the same day, it shall make an order for such appearance. 4. No party to be ordered to appear in person unless resident within certain limits. No party shall be ordered to appear in person unless he resides (a) within the local limits of the Court s ordinary original jurisdiction, or (b) without such limits but at place less than fifty or (where there is railway or steamer communication or other established public conveyance for five -sixths of the distance between the place where he resides and the place where the Court is situate) less than two hundred miles distance from the court -house. 5. Summons to be either to settle issues or for final disposal. The Court shall determine, at the time of issu ing the summons, whether it shall be for the settlement of issues only, or for the final disposal of the suit; and the summons shall contain a direction accordingly: Provided that, in every suit heard by a Court of Small Causes, the summons shall be for th e final disposal of the suit. 6. Fixing day for appearance of defendant. The day 2[under sub -rule ( 1) of rule 1] shall be fixed with reference to the current business of the Court, the place of residence of the defendant and the time necessary for the serv ice of the summons; and the day shall be so fixed as to allow the defendant sufficient time to enable him to appear and answer on such day. 7. Summons to order defendant to produce documents relied on by him. The summons to appea r and answer shall order th e defendant to produce 3[all documents or copies thereof specified in rule lA of Order VIII] in his possession or power upon which he intends to rely in support of his case. 8. On issue of summons for final disposal, defendant to be directed to produce his witnesses .Where the summons is for the final disposal of the suit, it shall also direct the defendant to produce, on the day fixed for his appearance, all witnesses upon whose evidence he intends to rely in support of his case. Service of summons 4[9. De livery of summons by Court. (1) Where the defendant resides within the jurisdiction of the Court in which the suit is instituted, or has an agent resident within that jurisdiction who is empowered to accept the service of the summons, the summons shall, un less the Court otherwise directs, be delivered or sent either to the proper officer to be served by him or one of his subordinates or to such courier services as are approved by the Court. (2) The proper officer may be an officer of a Court other than tha t in which the suit is instituted, and, where he is such an officer, the summons may be sent to him in such manner as the Court may direct. (3) The services of summons may be made by delivering or transmitting a copy thereof by registered post acknowledgme nt due, addressed to the defendant or his agent empowered to accept the service or by speed post or by such courier services as are approved by the High Court or by the Court referred to in sub -rule ( 1) or 1. Subs. by Act 46 of 1999, s. 15, for sub -rule ( 2) (w.e.f. 1 -7-2002). 2. Subs. by Act 22 of 2002, s. 15, for the appearance of the defendant (w.e.f. 1 -7-2002). 3. Subs. by s. 15, ibid., for all documents (w.e.f. 1 -7-2002). 4. Subs. by s. 6, ibid., for rule 9 (w.e.f. 1 -7-2002). 91 by any other means of transmission of documents (i ncluding fax message or electronic mail service) provided by the rules made by the High Court: Provided that the service of summons under this sub -rule shall be made at the expenses of the plaintiff. (4) Notwithstanding anything contained in sub -rule ( 1), where a defendant resides outside the jurisdiction of the Court in which the suit is instituted, and the Court directs that the service of summons on that defendant may be made by such mode of service of summons as is referred to in sub -rule ( 3) (except by registered post acknowledgment due), the provisions of rule 21 shall not apply. (5) When an acknowledgment or any other receipt purporting to be signed by the defendant or his agent is received by the Court or postal article containing the summons is rece ived back by the Court with an endorsement purporting to have been made by a postal employee or by any person authorised by the courier service to the effect that the defendant or his agent had refused to take delivery of the postal article containing the summons or had refused to accept the summons by any other means specified in sub -rule (3) when tendered or transmitted to him, the Court issuing the summons shall declare that the summons had been duly served on the defendant: Provided that where the summo ns was properly addressed, pre -paid and duly sent by registered post acknowledgment due, the declaration referred to in this sub -rule shall be made notwithstanding the fact that the acknowledgment having been lost or mislaid, or for any other reason, has n ot been received by the Court within thirty days from the date of issue of summons. (6) The High Court or the District Judge, as the case may be, shall prepare a panel of courier agencies for the purposes of sub -rule (1). 9A. Summons given to the plaintiff for service. (1) The Court may, in addition to the service of summons under rule 9, on the application of the plaintiff for the issue of a summons for the appearance of the defendant, permit such plaintiff to effect service of such summons on such defenda nt and shall, in such a case, deliver the summons to such plaintiff for service. (2) The service of such summons shall be effected by or on behalf of such plaintiff by delivering or tendering to the defendant personally a copy thereof signed by the Judge o r such officer of the Court as he may appoint in this behalf and sealed with the seal of the Court or by such mode of service as is referred to in sub-rule (3) of rule 9. (3) The provisions of rules 16 and 18 shall apply to a summons perso nally served under this rule as if the person effecting service were a serving officer. (4) If such summons, when tendered, is refused or if the person served refuses to sign an acknowledgment of service or for any reason such summons cannot be served pers onally, the Court shall , on the application of the party, re-issue such summons to be served by the Court in the same manner as a summons to a defendant.] 10. Mode of service. Service of the summons shall be made by delivering or tendering a copy thereof s igned by the Judge or such officer as he appoints in this behalf, and sealed with the seal of the Court. 11. Service on several defendants. Save as otherwise prescribed, where there are more defendants than one, service of the summons shall be made on each defendant. 12. Service to be on defendant in person when practicable, or on his agent. Wherever it is practicable , service shall be made on the defendant in person, unless he has an agent empowered to accept service, in which case service on such agent s hall be sufficient. 13. Service on agent by whom defendant carries on business. (1) In a suit relating to any business or work against a person who does not reside within the local limits of the jurisdiction of the Court from which the summons is issued, s ervice on any manager or agent, who, at the time of service, personally carries on such business or work for such person within such limits, shall be deemed good service. (2) For the purpose of this rule the master of a ship shall be deemed to be the agent of the owner or charter er. 14. Service on agent in charge in suits for immovable property. Where in a suit to obtain relief respecting, or compensation for wrong to, immovable property, service cannot be made on the defendant 92 in person, and the defendant has no agent empowered to accept the service, it may be made on any agent of the defendant in charge of the property. 1[15. Where service may be on an adult member of defendant's family. Where in any suit the defendant is absent from his residence at the time when the service of summons is sought to be effected on his at his residence and there is no likelihood of his being found at the residence within a reasonable time and he has no agent empowered to accept service of the summons on his behalf, service may be made on any adult member of the family, whether male or female, who is residing with him. Explanation. A servant is not a member of the family within the meaning of this rule.] 16. Person served to sign acknowledgment. Where the serving officer del ivers or tenders a copy of the summons to the defendant personally, or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered to an acknowledgment of service endorsed on the orig inal summons. 17. Procedure when defendant refuses to accept service, or cannot be found. Where the defendant or his agent or such other person as aforesaid refuses to sign the acknowledgment, or where the serving officer, after using all due and reasonabl e diligence, cannot find the defendant , 2[who is absent from his residence at the time when service is sought to be effected on him at his residence and there is no likelihood of his being found at the residence within a reasonable time] and there is no a gent empowered to accept service of the summons on his behalf, nor any other person on whom service can be made, the serving officer shall affix a copy of the summons on the outer door or some other conspicuous part of the house in which the defendant ordi narily resides or carries on business or personally works for gain, and shall then return the original to the Court from which it was issued, with a report endorsed thereon or annexed thereto stating that he has so affixed the copy, the circumstances under which he did so, and the name and address of the person (if any) by whom the house was identified and in whose presence the copy was affixed. 18. Endorsement of time and manner of service. The serving officer shall, in all cases in which the summons has b een served under rule 16, endorse or annex, or cause to be endorsed or annexed, on or to the original summons, a return stating the time when and the manner in which the summons was served, and the name and address of the person (if any) identifying the pe rson served and witnessing the delivery or tender of the summons. 19. Examination of serving officer. Where a summons is returned under rule 17, the Court shall, if the return under that rule has not been verified by the affidavit of the serving officer, a nd may, if it has been so verified, examine the serving officer on oath, or cause him to be so examined by another Court, touching his proceedings, and may make such further enquiry in the matter as it thinks fit; and shall either declare that the summons has been duly served or order such service as it thinks fit. 19A. [Simultaneous issue of summons for service by post in addition to personal service .] Omitted by the Code of Civil Procedure (Amendment ) Act, 1999 (46 of 1999 ), s. 15 (w.e.f . 1-7-2002). 20. Substituted service. (1) Where the Court is satisfied that there is reason to believe that the defendant is keeping out of the way for the purpose of avoiding service, or that for any other reason the summons cannot be served in the ordinary way, the Cou rt shall order the summons to be served by affixing a copy thereof in some conspicuous place in the Court -house, and also upon some conspicuous part of the house (if any) in which the defendant is known to have last resided or carried on business or person ally worked for gain, or in such other manner as the Court thinks fit. 3[(1A) Where the Court acting under sub -rule ( 1) orders service by an advertisement in a newspaper, the newspaper shall be a daily newspaper circulating in the locality in which the def endant is last known to have actually and voluntarily resided, carried on business or personally worked for gain.] 1. Subs. by Act 104 of 1976, s. 55, for rule 15 (w.e.f. 1 -2-1977). 2. Ins. by s. 55, ibid. (w.e.f. 1 -2-1977). 3. Ins. by Act 104 of 1976, s. 55 (w.e.f. 1 -2-197

Act 104 of 1976, s. 55 (w.e.f. 1 -2-1977). 93 (2) Effect of substituted service. Service substituted by order of the Court shall be as effectual as if it had been made on the defendant pe rsonally. (3) Where service substituted, time for appearance to be fixed. Where service is substituted by order of the Court, the Court shall fix such time for the appearance of the defendant as the case may require. 1[20A. Service of summons by post. ] Rep. by the Code of Civil Procedure (Amendment ) Act, 1976 (104 of 1976) , s. 55 (w.e.f. 1-2-1977)]. 21. Service of summons where defendant resides within jurisdiction of another Court. A summons may be sent by the Court by which it is issued, whether within or without the State, either by one of its officers 2[or by post or by such courier service as may be approved by the High Court, by fax message or by Electronic Mail service or by any other means as may be provided by the rules made by the High Court] to an y Court (not being the High Court) having jurisdiction in the place where the defendant resides. 22. Service within presidency towns of summons issued by Courts outside. Where a summons issued by any Court established beyond the limits of the towns of Calc utta, Madras 3[and Bombay] is to be served within any such limits, it shall be sent to the Court of Small Causes within whose jurisdiction it is to be served. 23. Duty of Court to which summons is sent. The Court to which a summons is sent under rule 21 or rule 22 shall, upon receipt thereof, proceed as if it had been issued by such Court and shall then return the summons to the Court of issue, together with the record (if any) of its proceedings with regard thereto. 24. Service on defendant in prison. Wher e the defendant is confined in a prison, the summons shall be delivered or sent 3[or by post or by such courier service as may be approved by the High Court, by fax message or by Electronic Mail service or by any other means as may be provided by the rules made by the High Court] to the officer in charge of the prison for service on the defendant. 25. Service where defendant resides out of India and has no agent. Where the defendant resides out of 4[India] and has no agent in 5[India] empowered to accept se rvice, the summons shall be addressed to the defendant at the place where he is residing and sent to him 3[or by post or by such courier service as may be approved by the High Court, by fax message or by Electronic Mail service or by any other means as may be provided by the rules made by the High Court], if there is postal communication between such place and the place where the Court is situate: 5[Provided that where any such defendant 6[resides in Bangladesh or Pakistan], the summons, together with a cop y thereof, may be sent for service on the defendant, to any Court in that country (not being the High Court) having jurisdiction in the place where the defendant resides : Provided further that where any such defendant is a public officer 7[in Bangladesh o r Pakistan (not belonging to the Bangladesh or, as the case may be, Pakistan military, naval or air forces)] or is a servant of a railway company or local authority in that country, the summons, together with a copy thereof, may be sent for service on the defendant, to such officer or authority in that country as the Central Government may by notification in the Official Gazette, specify in this behalf.] 8[26. Service in foreign territory through Political Agent or Court. Where (a) in the exercise of any foreign jurisdiction vested in the Central Government, a Political Agent has been appointed, or a Court has been established or continued, with power to serve a summons, 1. Ins. by Act 66 of 1956, s. 14 (w.e.f. 1 -1-1957) . 2. Subs. by Act 46 of 1999, s. 15, for certain words (w.e.f. 1 -7-2002). 3. Subs. by the A.O. 1937, for Bombay and Rangoon. 4. Subs. by Act 2 of 1951, s. 3, for the State. 5. Ins. by Act 19 of 1951, s. 2. 6. Subs. by Act 104 of 1976, s. 53, for resides in Pakistan, (w.e.f. 1 -2-1977). 7. Subs. by s. 55, ibid., for certain words (w.e.f. 1 -2-1977). 8. Subs. by s. 55, ibid., for rule 26 (w.e.f. 1 -2-1977). 94 issued by a Court under this Code, in any foreign territory in which the defendant act ually and voluntarily resides, carries on business or personally works for gain, or (b) the Central Government has, by notification in the Official Gazette, declared in respect of any Court situate in any such territory and not established or continued in the exercise of any such jurisdiction as aforesaid, that service by such Court of any summons issued by a Court under this Code shall be deemed to be valid service, the summons may be sent to such Political Agent or Court, by post, or otherwise, or if so d irected by the Central Government, through the Ministry of that Government dealing with foreign affairs, or in such other manner as may be specified by the Central Government for the purpose of being served upon the defendant; and, if the Political Agent o r Court returns the summons with an endorsement purporting to have been made by such Political Agent or by the Judge or other officer of the Court to the effect that the summons has been served on the defendant in the manner hereinbefore directed, such end orsement shall be deemed to be evidence of service. 26A. Summonses to be sent to officers to foreign countries. Where the Cen tral Government has, by notification in the Official Gazette , declared in respect of any foreign territory that summonses to be ser ved on defendants actually and voluntarily residing or carrying on business or personally working for gain in that foreign territory may be sent to an officer of the Government of the foreign territory specified by the Central Government , the summonses may be sent to such officer , through the Ministry of the Government of India dealing with foreign affairs or in such other manner as may be specified by the Central Government; and if such officer returns any such summons with an endorsement purporting to hav e been made by him that the summons has been served on the defendant , such endorsement shall be deemed to be evidence of service]. 27. Service on civil public officer or on servant of railway company or local authority. Where the defendant is a public offi cer (not belonging to the 1[the Indians ] military 2[naval or air] forces 3***), or is the servant of a railway company or local authority , the Court may , if it appears to it that the summons may be most conveniently so served , send it for service on the de fendant to the head of the office in which he is employed , together with a copy to be retained by the defendant. 28. Service on soldiers, sailors or airmen. Where the defendant is a soldier, 4[sailor] 5[or airman], the Court shall send the summons for serv ice to his commanding officer together with a copy to be retained by the defendant. 29. Duty of person to whom summons is delivered or sent for service. (1) Where a summons is delivered or sent to any person for service under rule 24, rule 27 or rule 28, s uch person shall be bound to serve it if possible, and to return it under his signature, with the written acknowledgment of the defendant , and such signature shall be deemed to be evidence of service. (2) Where from any cause service is impossible, the sum mons shall be returned to the Court with a full statement of such cause and of the steps taken to procure service, and such statement shall be deemed to be evidence of non -service. 30. Substitution of letter for summons. (1) The Court may, notwithstanding anything hereinbefore contained, substitute for a summons a letter signed by the Judge or such officer as he may appoint in this behalf, where the defendant is, in the opinion of the Court, of a rank entitling him to such mark of consideration. (2) A lett er substituted under sub -rule ( 1) shall contain all the particulars required to be stated in a summons, and, subject to the provisions of sub -rule (3), shall be treated in all respects as a summons. (3) A letter so substituted may be sent to the defend ant by post or by a special messenger selected by the Court, or in any other manner which the Court thinks fit; and, where the defendant has an agent empowered to accept service, the letter may be delivered or sent to such agent. 1. Subs. by the A.O. 1950, for his Majes tys. 2. Subs. by Act 10 of 1927, s. 2 and the First Sch., for or naval. 3. The words or His Majestys Indian Marine Service omitted by Act 35 of 1934, s. 2 and the Schedule. 4. Ins. by s. 2 and the Schedule ibid. 5. Ins. by Act 10 of 1927, s. 2 and t he First Sch edule . 95 ______ ORDER VI Pleadings ge nerally 1. Pleading. Pleading shall mean plaint or written statement. 1[2. Pleading to state material facts and not evidence. (1) Every pleading shall contain, and contain only, a statement in a concise form of the material facts on which the party plead ing relies for his claim or defence , as the case may be, but not the evidence by which they are to be proved. (2) Every pleading shall, when necessary, be divided into paragraphs, numbered consecutively, each allegation being, so far as is convenient, cont ained in a separate paragraph. (3) Dates, sums and numbers shall be expressed in a pleading in figures as well as in words.] 3. Forms of pleading. The forms in Appendix A when applicable, and where they are not applicable forms of the like character, as ne arly as may be, shall be used for all pleadings. *[3A. Forms of pleading in Commercial Courts .In a commercial dispute, where forms of pleadings have been prescribed under the High Court Rules or Practice Directions made for the purposes of such commercia l disputes, pleadings shall be in such forms.] 4. Particulars to be given where necessary. In all cases in which the party pleading relies on any misrepresentation, fraud, breach of trust, wilful default, or undue influence, and in all other cases in which particulars may be necessary beyond such as are exemplified in the forms aforesaid, particulars (with dates and items if necessary) shall be stated in the pleading. 5. [Further and better statement, or particulars .] Omitted by the Code of Civil Procedure (Amendment) Act, 1999 (46 of 1999), s. 16 (w.e.f. 1-7-2002 ). 6. Condition precedent . Any condition precedent, the performance or occurrence of which is intended to be contested, shall be distinctly specified in his pleading by the plaintiff or defendant , as the case may be; and, subject thereto, an averment of the performance or occurrence of all conditions precedent necessary for the case of the plaintiff or defendant shall be implied in his pleading. 7. Departure. No pleading shall, except by way of amen dment, raise any new ground of claim or contain any allegation of fact inconsistent with the previous pleadings of the party pleading the same. 8. Denial of contract. Where a contract is alleged in any pleading, a bare denial of the same by the opposite pa rty shall be construed only as a denial in fact of the express contract alleged or of the matters of fact from which the same may be implied, and not as a denial of the legality or sufficiency in law of such contract. 9. Effect of document to be stated. Wherever the contents of any document are material, it shall be sufficient in any pleading to state the effect thereof as briefly as possible, without setting out the whole or any part thereof, unless the precise words of the document or any part thereof ar e material. 10. Malice, knowledge, etc. Wherever it is material to allege malice, fradulent intention, knowledge or other condition of the mind of any person, it shall be sufficient to allege the same as a fact without setting out the circumstances from wh ich the same is to be inferred. 11. Notice. Wherever it is material to allege notice to any person of any fact, matter or thing, it shall be sufficient to allege such notice as a fact, unless the form or the precise terms of such notice, or the circumstanc es from which such notice is to be inferred , are material. 12. Implied contract, or relation. Whe never any contract or any relation between any persons is to be implied from a series of letters or conversations or otherwise from a number of circumstances, it shall be sufficient to allege such contract or relation as a fact, and to refer generally to such letters, conversations or circumstances without setting them out in detail. And if in such case the person so 1. Subs. by Act 104 of 1976, s. 56, for rule 2 (w.e.f. 1 -2-1977). * Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Sch . (w.e.f. 23 -10-2015) . 96 pleading desires to rely in the alternative u pon more contracts or relations than one as to be implied from such circumstances, he may state the same in the alternative. 13. Presumptions of law. Neither party need in any pleading allege any matter of fact which the law presumes in his favour or as to which the burden of proof lies upon the other side unless the same has first been specifically denied (e.g., consideration for a bill of exchange where the plaintiff sues only on the bill and not for the consideration as a substantive ground of claim). 14. Pleading to be signed. Every pleading shall be signed by the party and his pleader ( if any): Provided that where a party pleading is, by reason of absence or for other good cause, unable to sign the pleading, it may be signed by any person duly authori zed by him to sign the same or to sue or defend on his behalf 1[14A. Address for service of notice. (1) Every pleading, when filed by a party, shall be accompanied by a statement in the prescribed form, signed as provided in rule 14, regarding the address of the party.

, shall be accompanied by a statement in the prescribed form, signed as provided in rule 14, regarding the address of the party. (2) Such address may, from time to time, be changed by lodging in Court a form duly filled up and stating the new address of the party and accompanied by a verified petition. (3) The address furnished in the statement made under sub -rule ( 1) shall be called the registered address of the party, and shall, until duly changed as aforesaid, be deemed to be the address of the party for the purpose of service of all processes in the suit or in any appeal from any decree or order therein made and for the purpose of execution, and shall hold good, subject as aforesaid, for a period of two years after the final determination of the cause or matter. (4) Service of any process may be effected upon a party at his registered address in all respects as thoug h such party resided thereat. (5) Where the registered address of a party is discovered by the Court to be incomplete. false or fictitious, the Court may, either on its own motion, or on the application of any party , order (a) in the case where such regi stered address was furnished by a plaintiff, stay of the suit , or (b) in the case where such registered address was furnished by a defendant, his defence be struck out and he be placed in the same position as if he had not put up any defence . (6) Where a s uit is stayed or a defence is struck out under sub -rule ( 5), the plaintiff or, as the case may be, the defendant may, after furnishing his true address, apply to the Court for an order to set aside the order of stay or, as the case may be, the order striki ng out the defence. (7) The Court, if satisfied that the party was prevented by any sufficient cause from filing the true address at the proper time, shall set aside the order of stay or order striking out the defence, on such terms as to costs or otherwis e as it thinks fit and shall appoint a day for proceeding with the suit or defence , as the case may be. (8) Nothing in this rule shall prevent the Court from directing the service of a process at any other address, if, for any reason, it thinks fit to do s o.] 15. Verification of pleadings. (1) Save as otherwise provided by any law for the time being in force, every pleading shall be v erified at the foot by the party or by one of the parties pleading or by some other person proved to the satisfaction of the Court to be acquainted with the facts of the case. (2) The person verifying shall specify, by reference to the numbered paragraphs of the pleading, what he verifies of his own knowledge and what he verifies upon information received and believed to be true . 1. Ins. by Act 104 of 1976, s. 56 (w.e.f. 1 -2-1977). 97 (3) The verification shall be signed by the person making it and shall state the date on which and the place at which it was signed. 1[(4) The person verifying the pleading shall also furnish an affidavit in support of his pleadings. *[15A. Verification of pleadings in a commercial dispute . (1) Notwithstanding anything contained in Rule 15, every pleading in a commercial dispute shall be verified by an affidavit in the manner and form prescribed in the Appendix to this Schedule. (2) An affidavit under s ub-rule ( 1) above shall be signed by the party or by one of the parties to the proceedings, or by any other person on behalf of such party or parties who is proved to the satisfaction of the Court to be acquainted with the facts of the case and who is duly authorised by such party or parties. (3) Where a pleading is amended, the amendments must be verified in the form and manner referred to in sub-rule ( 1) unless the Court orders otherwise. (4) Where a pleading is not verified in the manner provided under sub-rule ( 1), the party shall not be permitted to rely on such pleading as evidence or any of the matters set out therein. (5) The Court may strike out a pleading which is not verified by a Statement of Truth, namely, the affidavit set out in the Appendix to this Schedule.] 2[16. Striking out pleadings. The Court may at any stage of the proceedings order to be struck out or amended any matter in any pleading (a) which may be unnecessary, scandalous, frivolous or vexatious, of (b) which may tend to prejud ice, embarrass or delay the fair trail of the suit, or (c) which is otherwise an abuse of the process of the Court.] 3[17. Amendment of pleadings. The Court may at any stage of the proceedings allow either party to alter or amend his pleadings in such mann er and on such terms as may be just, and all such amendments shall be made as may be necessary for the purpose of determining the real questions in controversy between the parties: Provided that no application for amendment shall be allowed after the trial has commenced, unless the Court comes to the conclusion that in spite of due diligence, the party could not have raised the matter before the commencement of trial. 18. Failure to amend after Order. If a party who has obtained an order for leave to amend does not amend accordingly within the time limited for that purpose by the order, or if no time is thereby limited then within fourteen days from the date of the order, he shall not be permitted to amend after the expiration of such limited time as aforesa id or of such fourteen days, as the case may be, unless the time is extended by the Court.] STATE AMENDMENT Uttar Pradesh Amendment of Order VI of the First Schedule. In the First Schedule to the said Code, in Order VI, in rule 15, in sub-rule (1), for words, on oath administered by an officer empowered under section 137 of the Code, [Vide Uttar Pradesh Act 31 of 1978, s. 4] 1. Ins. by Act 46 of 1999, s. 16 (w.e.f. 1 -7-2002). 2. Subs. by Act 104 of 1976, s. 56, for rule 16 (w.e.f. 1 -2-1977). 3. Subs. by Act 22 of 2002, s. 7, for rules 17 and 18 (w.e.f. 1 -7-2002). * Shall be applicable to commercial disputes of a specif ied value by Act 4 of 2016, s. 16 and the Sch . (w.e.f. 23 -10-2015) . 98 ____ ORDER VII Plaint 1. Particulars to be contained in plaint. The plaint shall contain the following particulars: (a) the name of the Court in which the suit is brought; (b) the name, description and place of residence of the plaintiff; (c) the name, description and place of residence of the defendant, so far as they can be ascertained; (d) where the plaintiff or the d efendant is a minor or a person of unsound mind, a statement to that effect; (e) the facts constituting the cause of action and when it arose; (f) the facts showing that the Court has jurisdiction; (g) the relief which the plaintiff claims; (h) where the plaintiff has allowed a set -off or relinquished a portion of his claim, the amount so allowed , or relinquished; and (i) a statement of the value of the subject -matter of the suit for the purposes of jurisdiction and of court -fees, so far as the case admit s. 2. In money suits. Where the plaintiff seeks the recovery of money, the plaint shall state the precise amount claimed : But where the plaintiff sues for mesne profits , or for an amount which will be found due to him on taking unsettled accounts between him and the defendant, 1[or for movables in the possession of the defendant, or for debts of which the value he cannot, after the exercise of reasonable diligence, estimate, the plaint shall state approximately the amount or value sued for .] *[2A. Where in terest is sought in the suit . (1) Where the plaintiff seeks interest, the plaint shall contain a statement to that effect along with the details set out under sub -rules ( 2) and ( 3). (2) Where the plaintiff seeks interest, the plaint shall state whether the plaintiff is seeking interest in relation to a commercial transaction within the meaning of section 34 of the Code of Civil Procedure, 1908 (5 of 1908) and, furthermore, if the plaintiff is doing so under the terms of a contra ct or under an Act, in which case the Act is to be specified in the plaint; or on some other basis and shall state the basis of that. (3) Pleadings shall also state (a) the rate at which interest is claimed; (b) the date from which it is claimed; (c) the date to which it is calculated; (d) the total amount of interest claimed to the date of calculation; and (e) the daily rate at which interest accrues after that date. ] STATE AMENDMENT Jammu and Kashmir and Ladakh (UTs) In Order VII, after Rule, insert the following Rule, namely: - 1. Subs. by Act 104 of 1976, s. 57, for certain words (w.e.f. 1 -2-1977). *. Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Sch . (w.e.f. 23 -10-2015) . 99 2A. Where interest is sought in the suit .(1) Where the plaintiff seeks interests, the plaint shall contain a statement to that effect along with the details set out under sub -rules (2) and (3). (2) Where the plaintiff seeks interest, the plaint shall state whether the plaintiff is seeking interest in relation to a commercial transaction within the meaning of section 34 of the Code of Civil Procedure, 1908 and, furthermore, if the plaintiff is doing so under the terms of a con tract or under an Act, in which case the Act is to be specified in the plaint; or on some other basis and shall state the basis of that. (3) Pleadings shall also state (a) the rate at which interest is claimed; (b) the date from which it is claimed; (c) the date to which it is calculated; (d) the total amount of interest claimed to the date calculation; and (e) the daily rate at which interest accrues after the date. [Vide the Jammu and Kashmir Reorgani sation (Adaptation of Central Laws) Order, 2020, notif ication No. S.O. 1123(E) dated (18 -3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws ) Order, 2020, Notification No. S.O . 3774(E), dated (23-10-2020)]. 3. Where the subject -matter of the suit is immovable property. Where the subject -matter of the suit is immovable property, the plaint shall contain a description of the property sufficient to identify it, and, in case such property can be identified by boundaries or numbers in a record of settlement or survey, the plaint sh all specify such boundaries or numbers. 4. When plaintiff sues as representative. Where the plaintiff sues in a representative character the plaint shall show not only that he has an actual existing interest in the subject -matter, but that he has taken the steps (if any) necessary to enable him to institute a suit concerning it. 5. Defendant s interest and liability to be shown. The plaint shall show that the defendant is or claims to be interested in the subject -matter, and that he is liable to be called u pon to answer the plaintiff s demand. 6. Grounds of exemption from limitation law. Where the suit is instituted after the expiration of the period prescribed by the law of limitation, the plaint shall show the ground upon which exemption from such law is claimed : 1[Provided that the Court may permit the plaintiff to claim exemption from the law of limitation on any ground not set out in the plaint, if such ground is not inconsistent with the grounds set out in the plaint.] 7. Relief to be specifically sta ted.Every plaint shall state specifically the relief which the plaintiff claims either simply or in the alternative, and it shall not be necessary to ask for general or other relief which may always be given as the Court may think just to the same extent as if it had been asked for. And the same rule shall apply to any relief claimed by the defendant in his written statement. 8. Relief founded on separate grounds. Where the plaintiff seeks relief in respect of several distinct claims or causes of action fo unded upon separate and distinct grounds, they shall be stated as far as may be separately and distinctly. 2[9. Procedure on admitting plaint. Where the Court orders that the summons be served on the defendants in the manner provided in rule 9 of Order V, it will direct the plaintiff to present as many copies of the plaint on plain paper as there are defendants within seven days from the date of such order along with requisite fee for service of summons on the defendants.] 310. Return of plaint. (1) 4[ Subject to the provisions of rule 10A, the plaint shall] at any stage of the suit be returned to be presented to the Court in which the suit should have been instituted. 1. The proviso a dded by Act 104 of 1976 , s. 57 (w.e.f. 1 -2-1977). 2. Subs. by Act 22 of 2002, s. 8, for rule 9 (w.e.f. 1 -7-2002). 3. This rule has been applied to suits for the recovery of rent under the Chota Nagpur Tenancy Act, 1908 (Ben. 6 o f 1908) s. 265. 4. Subs. by Act 104 of 1976, s. 57, for certain words (w.e.f. 1 -2-1977). 100 1[Explanation. For the removal of doubts, it is hereby declared that a Court of appeal or revision may direct after setting aside the decree passed in a suit, the return of the plaint under this sub-rule.] (2) Procedure on returning plaint . On returning a plaint, the Judge shall endorse thereon the date of its presentation and return, the nam e of the party presenting it, and a brief statement of the reasons for returning it. 3[10A. Power