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GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS
THE PUNJAB EX-SERVICEMEN CORPORATION ACT, 1978
(PUNJAB ACT 33 OF 1978)
(As amended upto the 15th August, 2025)
2025
THE PUNJAB EX-SERVICEMEN CORPORATION ACT, 1978
CONTENTS
Preamble
Sections
1. Short title and commencement
2. Definitions
CHAPTER II
INCORPORATION OF PUNJAB EX-SERVICEMEN CORPORATION
AND ITS CAPITAL
3. Establishment of Punjab Ex-Servicemen Corporation
4. Head office and other offices of the Corporation
5. Capital of Corporation
CHAPTER III
MANAGEMENT OF THE CORPORATION
6. Management
7. Constitution of Board
8. Disqualifications
9. Powers of the Managing Director
10. Staff of the Corporation
11. Committees
12. Meetings of the Board
13. Delegations of powers to the Chairman or the Managing Director and other
officers and employees
14. Casual vacancies
CHAPTER IV
FUNCTIONS AND FUNDS OF THE CORPORATION
15. Functions of the Corporation
16. Capital of the Corporation and its power to borrow or issue bonds and
debentures, etc.
17. Ex-Servicemen Corporation Fund
CHAPTER V
LOANS
18. Power to impose conditions for loans
19. Power to call repayment before agreed period
20. Recovery of money due to the Corporation
21. First charge of Corporation’s loans on debtor’s property
CHAPTERVI
ACCOUNTS AND AUDIT
22. Accounts
23. Audit
CHAPTER VII
MISCELLANOEOUS
24. Dissolution of Corporation
25. Directors not to participate in certain cases
26. Bar of jurisdiction
27. Protection of action taken in good faith
28. Indemnity of Director
29. Exemption from registration fee and stamp duty
30. Power of State Government to give directions
31. Power to make regulations
32. Power to make rules
33. Repeal and saving
1THE PUNJAB EX-SERVICEMEN CORPORATION ACT, 1978
(Punjab Act No. 33 of 1978)
[Received the assent of the President of India on the 10th October, 1978
and was first published for general information in the Punjab Government
Gazette (Extraordinary), Legislative Supplement, dated the 13th October,
1978.]
1 2 3 4
Year No. Short Title Whether repealed or otherwise
affected by the legislation
1978 33 The Punjab Ex-
Servicemen
Corporation Act, 1978
Amended by Punjab Act No. 8
of 1983
Amended by Punjab Act No. 11
of 2012
An Act to provide for the establishment of the Punjab Ex-Servicemen
Corporation.
BE it enacted by the Legislature of the State Punjab in the Twenty-ninth
Year of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Ex- Servicemen Corporation Act,
1978.
(2) It shall be deemed to have come into force on the 10th day of August,
1978.
2. In this Act, unless there is anything repugnant in the subject or context,-
(a) "agricultural development" includes development of dairy, poultry,
piggery, sheep and cattle breeding, pisciculture and sericulture;
(b) "Board" means the Board of Directors of the Corporation;
(c) "Chairman" means the Chairman of the Corporation;
1For Statement of Objects and Reasons. seePunjab Government Gazette (Extraordinary), 1978, Page1463
Short title and
commencement.
Definitions.
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(d) "Corporation" means the Punjab Ex-Servicemen Corporation;
(e) "Ex-serviceman" means a person who is ordinarily residing in the
State of Punjab and has served in any rank, whether as combatant or
non-combatant, in the Indian armed forces or the armed forced of the
former Indian States (but excluding the Assam Rifles, Defence
Security Corps, General Reserve Engineering Force, Lok Sahayak
Sena, Jammu and Kashmir Militia and Territorial Army) for a
continuous period of not less than six months after attestation and has
been released, otherwise than by way of dismissal or discharge on
account of misconduct or inefficiency, and in the case of a deceased or
incapacitated ex-serviceman includes his wife, children, father,
mother, minor brother, widowed daughter and widowed sister, wholly
dependent upon ex-serviceman immediately before his death or
incapacitation;
(f) "Ex-servicemen Organisation" means a firm registered under the
Partnership Act, 1932, an association registered under the Societies
Registration Act, 1860, or a co-operative society registered under the
Punjab Co-operative Societies Act, 1961, all the partners or members,
whereof, as the case may be, are ex-servicemen;
(g) "Government" means Government of the State of Punjab;
(h) "Managing Director" means the Managing Director of the
Corporation;
(i) "marketing" means all activities relating to the transport, grading,
pooling, marketing and sale of agricultural or industrial produce
whether in the primary form in semi-processed or processed form;
(j) "prescribed" means prescribed by rules made under this Act;
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(k) "processing" means all activities relating to the processing of
agricultural produce so as to make it marketable or fit for
consumption and includes purchase and storage of raw material,
purchase of equipment, and purchase, installation and running of
machinery, required for processing and storage of finished produce;
(l) "small-scale industry" means a cottage and small-scale industry and
includes industry engaged in fabrication, repairs and maintenance of
agricultural machinery and equipment, in which capital investment
does not exceed five lacs of rupees;
(m) "supply and storage" means supply and storage of agricultural inputs
and establishment, maintenance and running of storage, cold storages
and warehouses1[; and]
2[(n) “Vice-Chairman” means the Vice-Chairman of the Corporation.]
CHAPTER II
INCORPORATION OF PUNJAB EX-SERVICEMEN CORPORATION
AND ITS CAPITAL
3. (1) With effect from such date as the Government may, by notification,
appoint, there shall be established for the purpose of this Act a Corporation to be
known as the Punjab Ex-Servicemen Corporation.
(2) The Corporation shall be a body corporate with the name aforesaid
having perpetual succession and a common seal with powers, subject to the
provisions of this Act, to acquire, hold and dispose of property and to contract, and
may, by that name, sue and be sued.
4. (1) The Head office of the Corporation shall be at Chandigarh or at such
other place as the Government may, by notification, specify.
1Substituted by Punjab Act No. 11 of 2012, Section 2, on and with effect from the 20th day of August, 2010.
2Addedby Punjab Act No. 11 of 2012, Section 2, on and with effect from the 20th day of August, 2010.
Establishment
of Punjab Ex-
Servicemen
Corporation.
Head Office
and other
offices of the
Corporation.
Head office
and other
offices of the
corporation.
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(2) The Corporation may establish offices or agencies at such places as it
may think fit.
5. The authorised capital of the Corporation shall be such sum not exceeding
five crores of rupees as the Government may initially fix:
Provided that where the capital initially fixed is less than five crores of
rupees, the Government may, from time to time, increase the capital to such sum
not exceeding five crores of rupees as it may think fit.
CHAPTER III
MANAGEMENT OF THE CORPORATION
6. The general superintendence, direction and management of the affairs and
the business of the Corporation shall vest in a Board of Directors which may
exercise all such powers and do all such acts and things as may be exercised or
done by the Corporation.
7. (1) The Board of Directors shall consist of 1[the Chairman, the Vice-
Chairman,] the Managing Director and the following other directors namely:-
(a) The Secretary to Government in the Department of Defence
Service Welfare or his nominee, ex-officio;
(b) The Secretary to Government in the Finance Department or his
nominee, ex- officio;
(c) The Secretary to Government in the Development Department
or his nominee, ex-officio;
(d) The Director of Industries Punjab, or his nominee, ex-officio;
2[(dd) The Secretary, Punjab Rajya Sainik Board, ex-officio;]
1Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 3, on and with effect from the 20th
day of August, 2010.
2Inserted by Punjab Act No. 8 of 1983, Section 2
Capital of
Corporation.
Management.
Constitution
of Board.
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(e) Four other directors to be nominated by the Government from
amongst ex- servicemen.
(2) 1[The Chairman, the Vice-Chairman shall be a persons, who are Ex-
serviceman and were]holding a Class I post while in service and the Managing
Director shall be a person who is or has been a Class I Officer of the State
Government or Central Government and they shall be appointed by the
Government on such terms and conditions, including salary and allowances, as
may be prescribed.
(3) The terms and conditions of service, including salaries and
allowances, of the directors referred to in clause (e) of sub-section (1) shall be such
as may be prescribed.
(4) The term of office of 2 [the Chairman, the Vice-Chairman,]the
Managing Director and the directors referred to in clause (e) of sub section (1)
shall be two years and they shall be eligible for re-appointment.
(5) The circumstances under which 7[the Chairman, the Vice-
Chairman,] the Managing Director and the other directors referred to in clause (e)
of sub-section (1) shall be removable during the term of their office shall be such
as may be prescribed.
8. (1) A person shall be disqualified for being appointed or nominated, or
for continuing, as a director of the Corporation –
(a) if he is, or at any time has been, adjudicated insolvent or has
suspended payment of his debts or has compounded with his
creditors;
(b) if he is of unsound mind and stands so declared by a competent
court;
1Substituted by Punjab Act No. 11 of 2012, Section 3, on and with effect from the 20th day of August, 2010.
2Substituted for words and sign “the Chairman,” by Punjab Act No. 11 of 2012, Section 3, on and with effect from
the 20th day of August, 2010.
Disqualifications.
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(c) if he is or has been convicted of any offence which in the
opinion of the Government involves moral turpitude;
(d) if he, having held any office under the State Government or
Central Government, any local authority, any Government
Company or any corporate body owned or controlled by the
State Government or Central Government, has been removed or
dismissed from service; or
(e) if he has been removed by the Government.
(2) If a director becomes subject to any disqualification specified in sub-
section (1), his seat shall thereupon become vacant.
9. (1) The Managing Director who shall be whole-time officer of the
Corporation shall –
(a) be its Chief Executive Officer;
(b) be responsible for the operational management of the
Corporation and implementation of the general policies
approved by the Corporation;
(c) perform such duties as the Corporation may, by regulations or
otherwise, assign to him.
(2) If the Managing Director is by infirmity or otherwise rendered
incapable of carrying out his duties or is absent on leave or otherwise, in
circumstances not involving the vacation of his appointment the Government may
appoint another person to act in his place during his absence.
10. The Corporation may appoint such officers and employees as it may
consider necessary for the efficient performance of its functions and determine,
with the prior approval of the Government, the terms and conditions of their
service.
Powers of the
Managing
Director.
Staff of the
Corporation.
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11. Subject to the rules made in this behalf, the Board may, from time to time,
appoint one or more Committees for the purpose of securing the efficient discharge
of its functions.
12. (1) The Board or any Committee appointed by it shall meet at such times
and places and shall observe such rules of procedure in regard to the transaction of
business at its meetings as may be provided by the regulations made by the
Corporation under this Act.
1[(2) If for any reason, the Chairman is unable to attend any meeting of the
Board, the Vice-Chairman, and in his absence,any other director, elected by the
directors present at the meeting shall preside at the meeting.]
(3) Five directors shall form a quorum for the meetings of the Board:
Provided that no quorum shall be necessary for adjourned meetings.
(4) All questions which come up before any meeting of the Board shall be
decided by a majority of votes of the directors present and voting and in the event
of an equality of votes, the Chairman, or in his absence, the director presiding,
shall have and exercise a second or casting vote.
13. The Board may, by a general or special order, delegate to 2[the Chairman,
the Vice-Chairman,] or the Managing Director or any Committee appointed by it
or any other officer or employee of the Corporation subject to such conditions and
limitations, if any, as may be specified such of its powers and duties under this
Act, except the power to make regulations, as it may deem necessary.
14. (1) 3[The Chairman, the Vice-Chairman] or the Managing Director or any
director referred to in clause (e) of sub-section (1) of section 7 may, at any time,
1Substituted by Punjab Act No. 11 of 2012, Section 4, on and with effect from the 20th day of August, 2010.
2Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 5, on and with effect from the 20th
day of August, 2010.
3Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 6, on and with effect from the 20th
day of August, 2010.
Meetings of
the Board.
Delegation of
powers to the
Chairman or
the Managing
Director and
other officers
and
employees.
Casual
vacancies.
Committees.
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resign his office by giving a notice in writing to the Government and on such
resignation being accepted he shall be deemed to have vacated his office.
(2) If the office of 1[the Chairman, the Vice-Chairman] or the Managing
Director or any director referred to in clause (e) of sub-section (1) of section 7 falls
vacant by reason of his death, resignation or otherwise the vacancy shall be filled
by the Government by appointment or nomination, as the case may be.
CHAPTER IV
FUNCTIONS AND FUND OF THE CORPORATION
15. (1) Subject to the provisions of this Act, the functions of the Corporation
shall be to provide for the welfare and economic uplift to the ex-servicemen in the
State.
(2) Without prejudice to the generality of the foregoing provisions, the
Corporation may take such steps as it may think necessary-
(i) to plan, promote and undertake, on its own or in collaboration
with or through such ex-servicemen organisations or other
agencies as may be approved by the Corporation, programmes
of agricultural development, marketing, processing, supply and
storage of agricultural produce, small-scale industry, building
construction, transport and such other business, trade or activity
as may be approved in this behalf by the Government;
(ii) to provide financial assistance to ex-servicemen or their
organisations by advancing to them in cash or in kind loans
including loans under hire-purchase system for any of the
purposes specified in clause (i) either directly or through such
agency, organisation or institution as may be approved by it;
1Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 6, on and with effect from the 20th
day of August, 2010.
Functions of
the
Corporation.
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(iii) to give on hire agricultural or industrial machinery or equipment
to ex-servicemen or their organisations;
(iv) to give grants and subsidies to, and to guarantee loans taken by,
the ex- servicemen or their organisations;
(v) to discharge such other functions as may be prescribed or as are
supplemental, incidental or consequential to any of the
functions conferred on it under this Act.
(3) In discharging its functions, the Corporation shall have due regard to
public interest, its solvency and welfare of ex-servicemen.
16. (1) For the purpose of carrying out its functions under this Act, the
Corporation may –
(a) be provided with capital by the Government on such terms and
conditions as the Government may specify, or by any person or
association of persons interested in or dealing with the welfare
of ex-servicemen on such terms and conditions as may be
mutually agreed upon between the Corporation and such person
or association of persons;
(b) with the previous approval of, and subject to the directions of
the Government borrow money from any Bank or other
financial institution or any other authority or organisation;
(c) issue bonds and debentures or draw, make, accept, endorse,
discount, execute and issue promissory notes, bills of exchange,
hundies, bills, warrants, debentures and other negotiable
instruments.
Capital of the
Corporation
and its power
to borrow or
issue bonds
and
debentures,
etc.
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(2) The Government may guarantee the repayment of the moneys
borrowed by the Corporation under sub-section (1) and the payment of interest
thereon.
17. (1) The Corporation shall maintain a Fund called the Ex-servicemen
Corporation Fund (hereinafter referred to as the Fund) to which shall be credited-
(a) all moneys received by it from the Government or from any
person or association of persons interested in or dealing with the
welfare of ex- servicemen;
(b) such sums of money as may, from time to time, be realized by
way of repayment of loans made from the Fund or from interest
on loans;
(c) all moneys borrowed under section 16; and
(d) all moneys received by it from any other source.
(2) The moneys in the Fund shall be applied by the Corporation for
carrying out its functions under this Act.
(3) All moneys in the Fund shall be deposited in a Bank for the time
being included in the Second Schedule to the Reserve Bank of India Act, 1934, or
in a Government Treasury, as may be decided by the Corporation;
Provided that the Corporation may invest or deposit its surplus funds in the
Government securities or in such other manner at it may decide.
CHAPTER V
LOANS
18. In making any loan authorised by this Act, the Corporation may impose such
conditions as it may think necessary or expedient for protecting the interests of the
Corporation;
Ex-servicemen
Corporation
Fund.
Power to
Impose
conditions
for loans.
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Provided that interest on such loans shall be chargeable at such concession
rate as may, from time to time, be fixed by the Corporation with the prior approval
of the Government.
19. Notwithstanding anything to the contrary contained in any agreement, the
Corporation may, by notice in writing, require any debtor to discharge forthwith in
full his liabilities to the Corporation,-
(a) if it appears to the Corporation that any false or misleading
information or particular was given in the application for loan;
(b) if the debtor has failed to comply with any of the terms of the
agreement entered into by him with the Corporation;
(c) if there is a reasonable apprehension that the debtor is unable to pay
the money due from him; or
(d) if for any other reason it is necessary to do so to protect the interests
of the Corporation.
20. (1) Where any amount is due to the Corporation from any person,
including the surety of a debtor, in respect of loans or advances other financial
accommodation granted by it, such amount shall, on a certificate being granted by
the Managing Director in the prescribed form, be recoverable as arrears of land
revenue by the Collector of the district in which the person from whom the amount
is due resides or carries on business or owns any property.
(2) Before issuing the certificate referred to in sub-section (1) the
Managing Director shall make an application to such officer, unconnected with the
business of the Corporation, as may be empowered by the Government in this
behalf and that officer shall by an order determine the amount due to the
Corporation after giving an opportunity of the being heard to the person concerned
and communicate the same to the Managing Director.
Recovery of
money due to
the
Corporation.
Power to call
repayment
before agreed
period.
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(3) The officer empowered under sub-section (2) shall follow such
procedure as may be prescribed.
(4) The certificate issued by the Managing Director under sub-section (1)
shall be final and conclusive and shall not be called in question before any
authority or court.
(5) For the purpose of recovering any amount due to the Corporation in
respect of a loan it shall not be necessary to proceed against the principal before
proceeding against his surety.
21. Notwithstanding anything contained in any law for the time being in force,
but subject to the provisions relating to priority of charge in any law made by
Parliament and to any prior charge of the prescribed financing institutions or any
prior claim of the Government in respect of Land Revenue or any money
recoverable by it as arrears of land revenue, a loan advanced by the Corporation
under this Act together with the interest accrued thereon and costs of its recovery,
shall be first charge on the property of the debtor.
CHAPTER VI
ACCOUNTS AND AUDIT
22. (1) The balance-sheet and accounts including the profit and loss account
of the Corporation shall be prepared and maintained in such form and manner as
may be prescribed.
(2) The Corporation shall cause its books and accounts to be balanced and
closed on the thirty-first day of March each year.
23. (1) The accounts of the Corporation shall be audited once in every
financial year, by auditors duly qualified to act as auditors under sub-section (1) of
section 226 of the Companies act, 1956, who shall be appointed by the Corporation
and shall receive such remuneration from the Corporation as it may fix.
First Charge
of
Corporation's
loans on
debtor`s
property.
Accounts.
Audit.
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(2) The auditors shall be supplied with a copy of the annual balance sheet
and the profit and loss account of the Corporation and it shall be their duty to
examine them together with the accounts and vouchers relating thereto, and they
shall have a list delivered to them of all books kept by the Corporation and shall at
all reasonable times have access to the books, accounts and other documents of the
Corporation and may require from any officer of the Corporation such information
as the auditors may think necessary for the performance of their duties as auditors.
(3) The auditors shall make a report to the Corporation upon the annual
balance-sheet and accounts examined by them and in every such report they shall
state whether, in their opinion, the balance-sheet is a full and fair balance-sheet
containing all necessary particulars and properly drawn up so as to exhibit a true
and fair view of the state of affairs of the Corporation.
(4) The Corporation shall furnish to the Government, within four months
from the date on which its accounts are closed and balanced, a copy of its balance-
sheet and accounts together with a copy of the auditor's report and a report on the
working of the Corporation during the relevant year.
(5) Without prejudice to anything contained in the preceding sub-
sections, the Government may, at any time, appoint any other authority to examine
and report upon the accounts of the Corporation and any expenditure incurred in
connection with such examination and report shall be payable by the Corporation
to such authority.
(6) Copies of the reports referred to in sub-sections (4) and (5) shall be
laid by the Government, as soon as may be, before the State Legislature.
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CHAPTER VII
MISCELLANEOUS
24. No provision of law other than this Act, relating to the winding up,
dissolution or liquidation of the companies or corporations shall apply to the
Corporation.
25. A director who has any direct or indirect pecuniary interest in any matter
coming up for consideration at a meeting of the Board or a Committee thereof
shall, as soon as possible, after the relevant circumstances have come to his
knowledge, disclose the nature of his interest at such meeting and the disclosure
shall be recorded in the minutes of the Board or the Committee, as the case may
be, and the director shall not take any part in any deliberation or decision of the
Board or the Committee with respect to that matter.
26. Save as otherwise expressly provided in this Act, no civil court shall have
jurisdiction to entertain any suit or proceeding in respect of any matter which the
Corporation or any officer or authority appointed under this Act is empowered by
or under this Act to determine, and no injunction shall be granted by any court or
other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
27. No suit or other legal proceedings shall lie against the Corporation or any
director or any officer or employee or any other person authorised by the Board to
discharge any functions under this Act for any loss or damage caused or likely to
be caused by anything which is in good faith done or intended to be done in
pursuance of this Act.
28. (1) Every director shall be indemnified by the Corporation against all
losses and expenses incurred by him in the discharge of his duties, except such as
are caused by his own wilful act or default.
Dissolution of
Corporation.
Protection of
action taken
in good
faith.
Directors not
to participate
in certain
cases.
Indemnity of
director.
Bar of
Jurisdiction.
https://indiankanoon.org/doc/183461944/
https://indiankanoon.org/doc/26789642/
https://indiankanoon.org/doc/117003925/
https://indiankanoon.org/doc/187988814/
https://indiankanoon.org/doc/86861205/
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(2) A director shall not be responsible for any other director, or for any
officer or other employee of the Corporation or for any loss or expenses resulting
to the Corporation from the insufficiency or deficiency of value of, or title to, any
property or security acquired or taken on behalf of the Corporation in good faith, or
by the insolvency or wrongful act of any debtor or any person under obligation to
the Corporation, or anything done in good faith, in the execution of the duties of
his office or in relation thereto.
29. All documents executed by or on behalf of the Corporation in the couse of
discharge of its functions under this Act shall be exempt from payment of stamp
duty and registration fee:
Provided that exemption from payment of stamp duty shall apply to those
documents in relation to rates of stamp duty whereof the State Legislature is
competent to legislate.
30. The Corporation shall carry out such directions as may, from time to time,
be issued to it by the Government for the efficient administration of this Act.
31. (1) The Corporation may, with the previous approval of the Government,
make regulations not inconsistent with this Act and the rules framed thereunder to
provide for all matters for which provision is necessary or expedient for the
purposes of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power such regulations may provide for –
(a) the duties which 1 [the Chairman, the Vice-Chairman] and
Managing Director shall perform;
1Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 7, on and with effect from the 20th
day of August, 2010.
Exemption
from
registration
fee and stamp
duty.
Power of
Government
to give
directions.
Power to
make
regulations.
https://indiankanoon.org/doc/70644028/
https://indiankanoon.org/doc/122995283/
https://indiankanoon.org/doc/59133405/
https://indiankanoon.org/doc/35854686/
https://indiankanoon.org/doc/168235596/
https://indiankanoon.org/doc/42152453/
https://indiankanoon.org/doc/45933203/
(b) the time and places of meetings of the Board and the
Committees appointed by it and the procedure to be followed in
relation to such meetings;
(c) the conditions which may be imposed and the procedure which
may be followed in granting loans or entering into other
arrangements by the Corporation;
(d) the duties and conduct of the officers and other employees of
the Corporation;
(e) the establishment and maintenance of provident fund and other
benefit funds for the officers and other employees of the
Corporation; and
(f) generally, the efficient conduct of the affairs of the
Corporation;
(3) No regulations made under this Act shall have effect until they are
published in the Officer Gazette.
32. (1) The Government may, by notification, make rules to carry out all or
any of the purposes 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 terms and conditions of appointment, including salary and
allowances, of 1 [the Chairman, the Vice-Chairman] and the
Managing Director;
1Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 8, on and with effect from the 20th
day of August, 2010.
Powers to
make rules.
https://indiankanoon.org/doc/171629240/
https://indiankanoon.org/doc/66915888/
https://indiankanoon.org/doc/24960001/
https://indiankanoon.org/doc/139396505/
https://indiankanoon.org/doc/114591461/
https://indiankanoon.org/doc/66646279/
https://indiankanoon.org/doc/113107510/
https://indiankanoon.org/doc/77468992/
https://indiankanoon.org/doc/52731896/
https://indiankanoon.org/doc/18805645/
(b) the terms and conditions of appointment, including salary and
allowances, of the directors referred to in clause (e) of the sub-
section (1) of section 7;
(c) the circumstances under which 1 [the Chairman or the Vice-
Chairman] or the Managing Director or a director referred to in
clause (e) of sub-section (1) of section 7 shall be removable
during the term of his office;
(d) other functions which the Corporation may discharge in
addition to those mentioned in sub-section (2) of section 15;
(e) the form in which the certificate shall be granted by the
Managing Director and the procedure that shall be observed for
determining the amount;
(f) the financing institutions for the purposes of priority of charge
under section 21;
(g) the form and manner in which accounts shall be maintained and
the balance sheet and profit and loss account shall be prepared;
and
(h) any other matter which is required to be or may be prescribed.
(3) Every rule made under this section shall be laid as soon as may be
after it is made before the House of the State Legislative while it is in session for a
total period of ten days which may be comprised in one session or in two or more
successive sessions, and if before the expiry of the session in which it is so laid or
the successive sessions aforesaid, 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
1Substituted for words “the Chairman” by Punjab Act No. 11 of 2012, Section 8, on and with effect from the 20th
day of August, 2010.
https://indiankanoon.org/doc/193790248/
https://indiankanoon.org/doc/119970939/
https://indiankanoon.org/doc/171418704/
https://indiankanoon.org/doc/50536017/
https://indiankanoon.org/doc/143956103/
https://indiankanoon.org/doc/16513933/
https://indiankanoon.org/doc/87434436/
https://indiankanoon.org/doc/187074927/
may be; so however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule.
33. (1) The Punjab Ex-Servicemen Corporation Ordinance, 1978 (Punjab
Ordinance No. 15 of 1978), is hereby repealed.
(2) Notwithstanding such repeal anything done or any action taken under
the Ordinance so repealed shall be deemed to have been done or taken under the
corresponding provisions of this Act.
Repeal and
saving.
https://indiankanoon.org/doc/95442023/
https://indiankanoon.org/doc/136300045/
https://indiankanoon.org/doc/28580468/
2. In this Act, unless there is anything repugnant in the subject or context,-
(a) "agricultural development" includes development of dairy, poultry, piggery, sheep and cattle breeding, pisciculture and sericulture;
(b) "Board" means the Board of Directors of the Corporation;
(c) "Chairman" means the Chairman of the Corporation;
(d) "Corporation" means the Punjab Ex-Servicemen Corporation;
(e) "Ex-serviceman" means a person who is ordinarily residing in the State of Punjab and has served in any rank, whether as combatant or non-combatant, in the Indian armed forces or the armed forced of the former Indian States (but excluding the Assam...
(f) "Ex-servicemen Organisation" means a firm registered under the Partnership Act, 1932, an association registered under the Societies Registration Act, 1860, or a co-operative society registered under the Punjab Co-operative Societies Act, 1961, all...
(g) "Government" means Government of the State of Punjab;
(h) "Managing Director" means the Managing Director of the Corporation;
(i) "marketing" means all activities relating to the transport, grading, pooling, marketing and sale of agricultural or industrial produce whether in the primary form in semi-processed or processed form;
(j) "prescribed" means prescribed by rules made under this Act;
(k) "processing" means all activities relating to the processing of agricultural produce so as to make it marketable or fit for consumption and includes purchase and storage of raw material, purchase of equipment, and purchase, installation and runnin...
(l) "small-scale industry" means a cottage and small-scale industry and includes industry engaged in fabrication, repairs and maintenance of agricultural machinery and equipment, in which capital investment does not exceed five lacs of rupees;
(m) "supply and storage" means supply and storage of agricultural inputs and establishment, maintenance and running of storage, cold storages and warehouses [; and]
[(n) “Vice-Chairman” means the Vice-Chairman of the Corporation.]
CHAPTER II INCORPORATION OF PUNJAB EX-SERVICEMEN CORPORATION AND ITS CAPITAL
3. (1) With effect from such date as the Government may, by notification, appoint, there shall be established for the purpose of this Act a Corporation to be known as the Punjab Ex-Servicemen Corporation.
(2) The Corporation shall be a body corporate with the name aforesaid having perpetual succession and a common seal with powers, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, ...
4. (1) The Head office of the Corporation shall be at Chandigarh or at such other place as the Government may, by notification, specify.
(2) The Corporation may establish offices or agencies at such places as it may think fit.
5. The authorised capital of the Corporation shall be such sum not exceeding five crores of rupees as the Government may initially fix:
Provided that where the capital initially fixed is less than five crores of rupees, the Government may, from time to time, increase the capital to such sum not exceeding five crores of rupees as it may think fit.
CHAPTER III MANAGEMENT OF THE CORPORATION
7. (1) The Board of Directors shall consist of [the Chairman, the Vice-Chairman,] the Managing Director and the following other directors namely:-
(a) The Secretary to Government in the Department of Defence Service Welfare or his nominee, ex-officio;
(b) The Secretary to Government in the Finance Department or his nominee, ex- officio;
(c) The Secretary to Government in the Development Department or his nominee, ex-officio;
(d) The Director of Industries Punjab, or his nominee, ex-officio;
[(dd) The Secretary, Punjab Rajya Sainik Board, ex-officio;]
(e) Four other directors to be nominated by the Government from amongst ex- servicemen.
(2) [The Chairman, the Vice-Chairman shall be a persons, who are Ex-serviceman and were]holding a Class I post while in service and the Managing Director shall be a person who is or has been a Class I Officer of the State Government or Central Gover...
(3) The terms and conditions of service, including salaries and allowances, of the directors referred to in clause (e) of sub-section (1) shall be such as may be prescribed.
(4) The term of office of [the Chairman, the Vice-Chairman,]the Managing Director and the directors referred to in clause (e) of sub section (1) shall be two years and they shall be eligible for re-appointment.
(5) The circumstances under which 7[the Chairman, the Vice-Chairman,] the Managing Director and the other directors referred to in clause (e) of sub-section (1) shall be removable during the term of their office shall be such as may be prescribed.
8. (1) A person shall be disqualified for being appointed or nominated, or for continuing, as a director of the Corporation –
(a) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors;
(b) if he is of unsound mind and stands so declared by a competent court;
(c) if he is or has been convicted of any offence which in the opinion of the Government involves moral turpitude;
(d) if he, having held any office under the State Government or Central Government, any local authority, any Government Company or any corporate body owned or controlled by the State Government or Central Government, has been removed or dismissed from...
(e) if he has been removed by the Government.
(2) If a director becomes subject to any disqualification specified in sub- section (1), his seat shall thereupon become vacant.
9. (1) The Managing Director who shall be whole-time officer of the Corporation shall –
(a) be its Chief Executive Officer;
(b) be responsible for the operational management of the Corporation and implementation of the general policies approved by the Corporation;
(c) perform such duties as the Corporation may, by regulations or otherwise, assign to him.
(2) If the Managing Director is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment the Government may appoint another person to ac...
10. The Corporation may appoint such officers and employees as it may consider necessary for the efficient performance of its functions and determine, with the prior approval of the Government, the terms and conditions of their service.
11. Subject to the rules made in this behalf, the Board may, from time to time, appoint one or more Committees for the purpose of securing the efficient discharge of its functions.
12. (1) The Board or any Committee appointed by it shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by the regulations made by the Corporation un...
[(2) If for any reason, the Chairman is unable to attend any meeting of the Board, the Vice-Chairman, and in his absence,any other director, elected by the directors present at the meeting shall preside at the meeting.]
(3) Five directors shall form a quorum for the meetings of the Board:
13. The Board may, by a general or special order, delegate to [the Chairman, the Vice-Chairman,] or the Managing Director or any Committee appointed by it or any other officer or employee of the Corporation subject to such conditions and limitations...
14. (1) [The Chairman, the Vice-Chairman] or the Managing Director or any director referred to in clause (e) of sub-section (1) of section 7 may, at any time, resign his office by giving a notice in writing to the Government and on such resignation ...
(2) If the office of [the Chairman, the Vice-Chairman] or the Managing Director or any director referred to in clause (e) of sub-section (1) of section 7 falls vacant by reason of his death, resignation or otherwise the vacancy shall be filled by th...
CHAPTER IV FUNCTIONS AND FUND OF THE CORPORATION
15. (1) Subject to the provisions of this Act, the functions of the Corporation shall be to provide for the welfare and economic uplift to the ex-servicemen in the State.
(2) Without prejudice to the generality of the foregoing provisions, the Corporation may take such steps as it may think necessary-
(i) to plan, promote and undertake, on its own or in collaboration with or through such ex-servicemen organisations or other agencies as may be approved by the Corporation, programmes of agricultural development, marketing, processing, supply and stor...
(ii) to provide financial assistance to ex-servicemen or their organisations by advancing to them in cash or in kind loans including loans under hire-purchase system for any of the purposes specified in clause (i) either directly or through such agenc...
(iii) to give on hire agricultural or industrial machinery or equipment to ex-servicemen or their organisations;
(iv) to give grants and subsidies to, and to guarantee loans taken by, the ex- servicemen or their organisations;
(v) to discharge such other functions as may be prescribed or as are supplemental, incidental or consequential to any of the functions conferred on it under this Act.
(3) In discharging its functions, the Corporation shall have due regard to public interest, its solvency and welfare of ex-servicemen.
16. (1) For the purpose of carrying out its functions under this Act, the Corporation may –
(a) be provided with capital by the Government on such terms and conditions as the Government may specify, or by any person or association of persons interested in or dealing with the welfare of ex-servicemen on such terms and conditions as may be mut...
(b) with the previous approval of, and subject to the directions of the Government borrow money from any Bank or other financial institution or any other authority or organisation;
(c) issue bonds and debentures or draw, make, accept, endorse, discount, execute and issue promissory notes, bills of exchange, hundies, bills, warrants, debentures and other negotiable instruments.
(2) The Government may guarantee the repayment of the moneys borrowed by the Corporation under sub-section (1) and the payment of interest thereon.
17. (1) The Corporation shall maintain a Fund called the Ex-servicemen Corporation Fund (hereinafter referred to as the Fund) to which shall be credited-
(a) all moneys received by it from the Government or from any person or association of persons interested in or dealing with the welfare of ex- servicemen;
(b) such sums of money as may, from time to time, be realized by way of repayment of loans made from the Fund or from interest on loans;
(c) all moneys borrowed under section 16; and
(d) all moneys received by it from any other source.
(2) The moneys in the Fund shall be applied by the Corporation for carrying out its functions under this Act.
(3) All moneys in the Fund shall be deposited in a Bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934, or in a Government Treasury, as may be decided by the Corporation;
Provided that the Corporation may invest or deposit its surplus funds in the Government securities or in such other manner at it may decide.
CHAPTER V LOANS
18. In making any loan authorised by this Act, the Corporation may impose such conditions as it may think necessary or expedient for protecting the interests of the Corporation;
19. Notwithstanding anything to the contrary contained in any agreement, the Corporation may, by notice in writing, require any debtor to discharge forthwith in full his liabilities to the Corporation,-
(a) if it appears to the Corporation that any false or misleading information or particular was given in the application for loan;
(b) if the debtor has failed to comply with any of the terms of the agreement entered into by him with the Corporation;
(c) if there is a reasonable apprehension that the debtor is unable to pay the money due from him; or
(d) if for any other reason it is necessary to do so to protect the interests of the Corporation.
20. (1) Where any amount is due to the Corporation from any person, including the surety of a debtor, in respect of loans or advances other financial accommodation granted by it, such amount shall, on a certificate being granted by the Managing Direc...
(2) Before issuing the certificate referred to in sub-section (1) the Managing Director shall make an application to such officer, unconnected with the business of the Corporation, as may be empowered by the Government in this behalf and that officer...
(3) The officer empowered under sub-section (2) shall follow such procedure as may be prescribed.
(4) The certificate issued by the Managing Director under sub-section (1) shall be final and conclusive and shall not be called in question before any authority or court.
(5) For the purpose of recovering any amount due to the Corporation in respect of a loan it shall not be necessary to proceed against the principal before proceeding against his surety.
21. Notwithstanding anything contained in any law for the time being in force, but subject to the provisions relating to priority of charge in any law made by Parliament and to any prior charge of the prescribed financing institutions or any prior cl...
CHAPTER VI ACCOUNTS AND AUDIT
22. (1) The balance-sheet and accounts including the profit and loss account of the Corporation shall be prepared and maintained in such form and manner as may be prescribed.
(2) The Corporation shall cause its books and accounts to be balanced and closed on the thirty-first day of March each year.
23. (1) The accounts of the Corporation shall be audited once in every financial year, by auditors duly qualified to act as auditors under sub-section (1) of section 226 of the Companies act, 1956, who shall be appointed by the Corporation and shall ...
(2) The auditors shall be supplied with a copy of the annual balance sheet and the profit and loss account of the Corporation and it shall be their duty to examine them together with the accounts and vouchers relating thereto, and they shall have a l...
(3) The auditors shall make a report to the Corporation upon the annual balance-sheet and accounts examined by them and in every such report they shall state whether, in their opinion, the balance-sheet is a full and fair balance-sheet containing all...
(4) The Corporation shall furnish to the Government, within four months from the date on which its accounts are closed and balanced, a copy of its balance-sheet and accounts together with a copy of the auditor's report and a report on the working of ...
(5) Without prejudice to anything contained in the preceding sub-sections, the Government may, at any time, appoint any other authority to examine and report upon the accounts of the Corporation and any expenditure incurred in connection with such ex...
(6) Copies of the reports referred to in sub-sections (4) and (5) shall be laid by the Government, as soon as may be, before the State Legislature.
CHAPTER VII MISCELLANEOUS
24. No provision of law other than this Act, relating to the winding up, dissolution or liquidation of the companies or corporations shall apply to the Corporation.
25. A director who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board or a Committee thereof shall, as soon as possible, after the relevant circumstances have come to his knowledge, discl...
26. Save as otherwise expressly provided in this Act, no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Corporation or any officer or authority appointed under this Act is empowered by or un...
27. No suit or other legal proceedings shall lie against the Corporation or any director or any officer or employee or any other person authorised by the Board to discharge any functions under this Act for any loss or damage caused or likely to be ca...
28. (1) Every director shall be indemnified by the Corporation against all losses and expenses incurred by him in the discharge of his duties, except such as are caused by his own wilful act or default.
(2) A director shall not be responsible for any other director, or for any officer or other employee of the Corporation or for any loss or expenses resulting to the Corporation from the insufficiency or deficiency of value of, or title to, any proper...
29. All documents executed by or on behalf of the Corporation in the couse of discharge of its functions under this Act shall be exempt from payment of stamp duty and registration fee:
Provided that exemption from payment of stamp duty shall apply to those documents in relation to rates of stamp duty whereof the State Legislature is competent to legislate.
30. The Corporation shall carry out such directions as may, from time to time, be issued to it by the Government for the efficient administration of this Act.
31. (1) The Corporation may, with the previous approval of the Government, make regulations not inconsistent with this Act and the rules framed thereunder to provide for all matters for which provision is necessary or expedient for the purposes of gi...
(2) In particular and without prejudice to the generality of the foregoing power such regulations may provide for –
(a) the duties which [the Chairman, the Vice-Chairman] and Managing Director shall perform;
(b) the time and places of meetings of the Board and the Committees appointed by it and the procedure to be followed in relation to such meetings;
(c) the conditions which may be imposed and the procedure which may be followed in granting loans or entering into other arrangements by the Corporation;
(d) the duties and conduct of the officers and other employees of the Corporation;
(e) the establishment and maintenance of provident fund and other benefit funds for the officers and other employees of the Corporation; and
(f) generally, the efficient conduct of the affairs of the Corporation;
(3) No regulations made under this Act shall have effect until they are published in the Officer Gazette.
(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 terms and conditions of appointment, including salary and allowances, of [the Chairman, the Vice-Chairman] and the Managing Director;
(b) the terms and conditions of appointment, including salary and allowances, of the directors referred to in clause (e) of the sub-section (1) of section 7;
(c) the circumstances under which [the Chairman or the Vice-Chairman] or the Managing Director or a director referred to in clause (e) of sub-section (1) of section 7 shall be removable during the term of his office;
(d) other functions which the Corporation may discharge in addition to those mentioned in sub-section (2) of section 15;
(e) the form in which the certificate shall be granted by the Managing Director and the procedure that shall be observed for determining the amount;
(f) the financing institutions for the purposes of priority of charge under section 21;
(g) the form and manner in which accounts shall be maintained and the balance sheet and profit and loss account shall be prepared; and
(h) any other matter which is required to be or may be prescribed.
(3) Every rule made under this section shall be laid as soon as may be after it is made before the House of the State Legislative while it is in session for a total period of ten days which may be comprised in one session or in two or more successive...
33. (1) The Punjab Ex-Servicemen Corporation Ordinance, 1978 (Punjab Ordinance No. 15 of 1978), is hereby repealed.
(2) Notwithstanding such repeal anything done or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corresponding provisions of this Act.
About this act
- Jurisdiction
- Punjab
- Enactment date
- 1978-10-10
- Sections available
- Document reader
Commencement information from the source
1978-10-10
India Code, Government of India. Text fetched 11 Oct 2026. Source metadata reports last modification: 2026-03-17. Check the linked official text and subsequent notifications when applying a provision.