THE NATIONAL INSTITUTE OF FASHION TECHNOLOGY ACT, 2006 
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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

THE INSTITUTE 

3.  Establishment of the Institute. 
4.  Vesting of properties. 
5.  Effect of incorporation of Institute. 
6.  Functions of Institute. 
7.  Powers of Board. 
8.  Institute be open to all races, creeds and classes. 
9.  Teaching at Institute. 
10.  Visitor. 
11.  Authorities of Institute. 
12.  Senate. 
13.  Functions of Senate. 
14.  Functions, powers and duties of Chairperson. 
15.  Director-General. 
16.  Registrar. 
17.  Powers and duties of other authorities and officers. 
18.  Grants by Central Government. 
19.  Fund by Institute. 
20.  Setting up of endowment fund. 
21.  Accounts and audit. 
22.  Pension and provident fund. 
23.  Appointment. 
24.  Statutes. 
25.  Statutes how made. 
26.  Ordinances. 
27.  Ordinances how made. 
28.  Tribunal of Arbitration 

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CHAPTER III 

MISCELLANEOUS 

SECTIONS 

29.  Acts and proceedings not to be invalidated by vacancies, etc. 
30.  Sponsored schemes. 
31.  Power of Institute to grant degrees, etc. 
32.  Powers to remove difficulties. 
33.  Transitional provisions. 
34.  Statutes and Ordinances to be published in the Official Gazette and to be laid before Parliament. 

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THE NATIONAL INSTITUTE OF FASHION TECHNOLOGY ACT, 2006 

ACT NO. 28 OF 2006 

An  Act  to  establish  and  incorporate  the  National  Institute  of  Fashion  Technology  for  the 
promotion and development of education and research in fashion technology and for matters 
connected therewith and incidental thereto. 

BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— 

[13th July, 2006.] 

CHAPTER I 

PREMILINARY 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  National  Institute  of  Fashion 

Technology Act, 2006. 

(2)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint and different dates may be appointed for different provisions of this Act. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “appointed  day”  means  the  date  of  establishment  of  the  National  Institute  of  Fashion 

Technology under sub-section (1) of section 3; 

(b) “Board"  means  the  Board  of  Governors  of  the  Institute constituted under  sub-section (3)  of 

section 3; 

(c)  “Chairperson”  means  the  Chairperson  of  the  Institute  nominated  under  clause  (a)  of                      

sub-section (3) of section 3; 

(d) “Director-General” means the Director-General of the Institute appointed under section 15; 

(e) “fashion” includes a popular trend or a lifestyle, specially in styles of dress and ornament or 
manners  of  behaviour  or  the  business  of  creating,  promoting  or  studying  styles  in  vogue  or  the 
designing, production and marketing of new styles of goods such as, clothing, accessories, craft and 
cosmetics;  and  the  words  “fashion  technology”  with  their  grammatical  variations  and  cognate 
expressions, shall be construed accordingly; 

(f) “Fund” means the Fund of the Institute to be maintained under section 19; 

(g)  “Institute”  means  the  National  Institute  of  Fashion  Technology  established  under                         

sub-section (1) of section 3; 

(h) “Institute Campus” means an Institute Campus located at New Delhi, Gandhinagar, Chennai, 
Mumbai, Hyderabad, Bangalore, Kolkata or any other place in India or abroad as may be decided by 
the Board of Governors; 

1. 1st April, 2007, vide notification No. S.O. 2159(E), dated 27th December, 2006, see Gazette of India, Extraordinary, Part II, 

sec. 3(ii). 

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(i) “Senate” means the Senate of the Institute referred to in section 12; 

(j)  “Society”  means  the  National  Institute  of  Fashion  Technology,  New  Delhi  registered  as  a 

society under the Societies Registration Act, 1860 (21 of 1860); 

(k) “Statutes and Ordinances” mean respectively the Statutes and the Ordinances of the Institute 

made under this Act. 

CHAPTER II 

THE INSTITUTE 

3. Establishment of the Institute.—(1) With effect from such date as the Central Government may, 
by  notification  in  the  Official  Gazette  appoint,  the  National  Institute  of  Fashion  Technology  shall  be 
established as a body corporate by the name aforesaid. 

(2)  The  Institute  shall  have  perpetual  succession  and  a  common  seal  with  power,  subject  to  the 
provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, 
sue or be sued. 

(3) The Institute shall consist of the Board of Governors having the following persons, namely:— 

(a) a Chairperson, who shall be an eminent academician, scientist or technologist or professional, 

to be nominated by the Visitor; 

(b) three Members of Parliament, two from Lok Sabha to be nominated by the Speaker of Lok 

Sabha and one from Rajya Sabha to be nominated by the Chairman of Rajya Sabha; 

(c) the Director-General of the Institute, ex officio; 

(d) the Financial Adviser of the Ministry or Department in the Government of India dealing with 

the National Institute of Fashion Technology, ex officio; 

(e) the Joint Secretary, in the Ministry or Department in the Government of India dealing with the 

National Institute of Fashion Technology, ex officio; 

(f)  the  representative  of  the  Ministry  or  Department  in  the  Government  of  India  dealing  with 

higher education to be nominated by the Secretary of that Ministry or Department, ex officio; 

(g) five persons to be nominated by the Central Government, representing the States in which the 
campus  of  the  Institute  is  located,  from  amongst  persons  who  are  academicians  or  industrialists  of 
repute engaged in area of fashion technology; and 

(h)  two  eminent  experts  in  fashion  technology,  one  of  whom  shall  be  an  educationist,  to  be 

nominated by the Visitor on the recommendations of the Central Government. 

(4)  The  term  of  office  of  the  Chairperson  and  other  members  of  the  Board  other  than  ex  officio 
members thereof shall be three years and they shall be entitled for such allowances as may be determined 
by the Central Government. 

(5) The term of office of members of the Board nominated to fill a casual vacancy shall continue for 

the remainder of the term of the member in whose place he has been nominated. 

(6) The Board shall meet at least four times in a year at such place and time and observe such rules of 

procedure in regard to the transaction of business at its meetings as may be determined by the Board. 

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(7) It is hereby declared that the office of member of the Board of Governors shall not disqualify its 

holder for being chosen as, or for being, a member of either House of Parliament. 

4.Vesting of properties.—On and from the appointed day, subject to the other provisions of this Act, 
all properties which had vested in the Society, immediately before the commencement of this Act, shall 
on and from such commencement, vest in the Institute. 

5. Effect of incorporation of Institute.—On and from the appointed day— 

(a) any reference to the Society in any contract or other instrument shall be deemed as a reference 

to the Institute; 

(b)  all  the  rights  and  liabilities  of  the  Society  shall  be  transferred  to,  and  be  the  rights  and 

liabilities of, the Institute; and 

(c)  every  person  employed  by  the  Society,  immediately  before  the  appointed  day,  shall  hold 
office  or  service  in  the  Institute  by  the  same  tenure,  at  the  same  remuneration  and  upon  the  same 
terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident 
fund  and other  matters  as  he  would  have  held  the  same,  if  this  Act  had  not  been  passed,  and  shall 
continue to be so, unless and until his employment is terminated or until such tenure, remuneration, 
terms and conditions are duly altered by the Statutes: 

Provided that if the alteration so made is not acceptable to such employee, his employment may 
be terminated by the Institute in accordance with the terms of the contract with the employee or, if no 
provision  is  made  therein  in  this  behalf,  on  payment  to  him  by  the  Institute  of  compensation 
equivalent  to  three  months  remuneration  in  the  case  of  permanent  employee  and  one  month’s 
remuneration in the case of other employee. 

6. Functions of Institute.—The functions of the Institute shall be— 

(i)  to  nurture  and  promote  quality  and  excellence  in  education  and  research  in  area  of  fashion 

technology; 

(ii) to lay down courses leading to graduate and post-graduate degrees, doctoral and post-doctoral 

courses and research in area of fashion technology; 

(iii) to hold examinations and grant degrees in area of fashion technology; 

(iv) to confer honorary degrees, awards or other distinctions in area of fashion technology; 

(v)  to  cooperate  with  educational  or  other  institutions  in  any  part  of  the  world  having  objects 
wholly  or  partly  similar  to  those  of the  Institute  by  exchange  of faculty  members  and  scholars  and 
generally in such manner as may be conducive to their common objective; 

(vi) to conduct courses for teachers, fashion technologists and other professionals; 

(vii)  to  undertake  research  and  studies  in  area  of  fashion  technology  and  application  thereof, 
particularly  concerning  the  integration  of  locally  produced  materials,  the  requirements  of  mass 
production, improved quality and design and international marketing; 

(viii) to collect and maintain literature and materials available in area of fashion technology so as 

to develop a modern information centre within the country; 

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(ix)  to  create  a  central  faculty  of  fashion  technology  resource  and  analysis  for  use  by  the 

researchers; 

(x)  to  have  a  centre  to  experiment  and  innovate  and  to  train  persons  in  the  area  of  fashion 

technology; 

(xi) to develop an international centre for creation and transmission of information in the area of 

fashion technology, with focus on educational, professional and industrial commitments; 

(xii)  to  develop  a  multi-disciplinary  approach  in  carrying  out  research  and  training  in  area  of 
fashion  technology  so  that  the  larger  interests  of  the  profession,  academia  and  fashion  industry  are 
better served; 

(xiii)  to  organise  national  or  international  symposia,  seminars,  conferences  and  exhibitions  in 

selected area of fashion technology, from time to time; 

(xiv) to arrange courses catering to the special needs of the developing countries; 

(xv) to act as a nucleus for interaction between academia and industry by encouraging exchange 
of  fashion  technologists  and  other  technical  staff  between  the  Institute  and  the  industry  and  by 
undertaking sponsored and funded research as well as consultancy projects by the Institute; 

(xvi) to provide technical assistance to artisans, craftsmen, manufacturers, designers and exporters 

of fashion products; and 

(xvii)  to  carry  out  any  other  activity  in  the  area  of  fashion  technology  not  specifically  listed 

above. 

7. Powers of Board.—(1) Subject to the provisions of this Act, the Board, under overall control of 
the Central Government, shall be responsible for the general superintendence, direction and control of the 
affairs of the Institute and shall exercise all the powers not otherwise provided for by this Act, the Statutes 
and the Ordinances, and shall have the power to review the acts of the Senate.  

(2) Without prejudice to the provisions of sub-section (1), the Board shall— 

(a)  take  decisions  on  questions  of  policy  relating  to  the  administration  and  working  of  the 

Institute; 

(b) take decisions on the establishment of new campuses of the Institute at any location in India 

or abroad; 

(c) fix, demand and receive fees and other charges; 

(d) establish, maintain and manage halls and hostels for the residence of the students; 

(e) supervise and control the residence and regulate the discipline of students of the Institute and 

to make arrangements for promoting their health, general welfare and cultural and corporate life; 

(f) institute academic and other posts and to make appointments thereto (except in the case of the 

Director-General); 

(g) frame Statutes and Ordinances and to alter, modify or rescind the same; 

(h) institute and award fellowships, scholarships, prizes and medals; 

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(i)  consider  and  pass  resolutions  on  the  annual  report,  the  annual  accounts  and  the  budget 
estimates  of  the  Institute  for  the  next  financial  year  as  it  thinks  fit  together  with  a  statement  of  its 
development plans; 

(j) receive gifts, grants, donations or benefactions from the Government and to receive bequests, 
donations and transfers of movable or immovable properties from the testators, donors or transferors, 
as the case may be; and 

(k) do all such things as may be necessary, incidental or conducive to the attainment of all or any 

of the aforesaid powers. 

(3)  The  Board  shall  have  the  power  to  appoint  such  committees,  as  it  considers  necessary  for  the 

exercise of its powers and the performance of its duties under this Act. 

(4) Notwithstanding anything contained in sub-section (2) of section 3, the Board shall not dispose of 

in any manner any immovable property without the prior approval of the Central Government. 

(5) The Central Government may appoint one or more persons to review the work and progress of the 
Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Central 
Government may direct. 

(6)  Upon  receipt  of  any  such  report,  the  Central  Government  may  take  such  action  and  issue  such 
directions  as  it  considers  necessary  in  respect  of  any  of  the  matters  dealt  with  in  the  report  and  the 
Institute shall be bound to comply with such directions. 

(7)  The  Visitor  shall  have  the  power  to  remove  the  Chairperson  or  other  members  of  the  Board 

nominated by him, on the recommendations of the Central Government. 

(8)  The  Central  Government  shall  have  the  power  to  remove  other  members,  if  it  considers  it 

appropriate to do so. 

(9) No Chairperson or member shall be removed under sub-section (7) or sub-section (8) unless he 

has been given a reasonable opportunity of being heard in the matter. 

8. Institute be open to all races, creeds and classes.—(1) The Institute shall be open to persons of 
either  sex  and  of  whatever  race,  creed,  caste  or  class,  and  no  test  or  condition  shall  be  imposed  as  to 
religious belief or profession in admitting or appointing members, students, teachers or workers or in any 
other connection whatsoever. 

(2) No bequest, donation or transfer of any property shall be accepted by the Institute, which in the 

opinion of the Board involves conditions or obligations opposed to the spirit and object of this section. 

9. Teaching at Institute.—All teaching at the campuses of the Institute shall be conducted by or in 

the name of the Institute in accordance with the Statutes and the Ordinances made in this behalf. 

10. Visitor.—The President of India shall be the Visitor of the Institute. 

11. Authorities of Institute.—The following shall be the authorities of the Institute, namely:— 

(a) a Board of Governors; 

(b) a Senate; and 

(c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. 

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12. Senate.—The Senate of the Institute shall consist of the following persons, namely:— 

(a) the Director-General, ex officio who shall be the Chairperson of the Senate; 

(b) all Institute Campus Directors and Senior Professors; 

(c)  three  persons,  not  being  employees  of  the  Institute,  to  be  nominated  by  the  Chairperson  in 
consultation  with  the  Director-General,  from  amongst  educationists  of  repute,  one  each  from  the 
fields  of  science,  engineering  and  humanities  and  one  of  them  shall  be  either  from  the  Scheduled 
Castes or the Scheduled Tribes; 

(d)  one  alumnus  of  the  Institute  to  be  nominated  by  the  Chairperson  in  consultation  with  the 

Director-General by rotation; and 

(e) such other members of the staff as may be laid down in the Statutes. 

13. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the 
Senate  of  the  Institute  shall  have  the  control  and  general  regulation,  and  be  responsible  for  the 
maintenance of standards of instruction, education and examination in the Institute and shall exercise such 
other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. 

14. Functions, powers and duties of Chairperson.—(1) The Chairperson shall ordinarily preside at 

the meetings of the Board and at the Convocations of the Institute. 

(2)  The  Chairperson  shall  exercise  such  other  powers  and  perform  such  other  duties  as  may  be 

assigned to him by this Act or the Statutes. 

15.  Director-General.—(1)  The  Director-General  of  the  Institute  shall  be  appointed  by  the  Board 

with the prior approval of the Central Government for a tenure of three years. 

(2)  The  Director-General  shall  be  the  principal  executive  officer  of  the  Institute  and  shall  be 
responsible for the proper administration of the Institute and for imparting of instruction and maintenance 
of discipline therein. 

(3) The Director-General shall submit annual reports and accounts to the Board. 

(4) The Director-General shall exercise such other powers and perform such other duties as may be 

assigned to him by this Act, Statutes and Ordinances. 

(5) The Central Government shall have the power to remove the Director-General before the tenure of 

three years, if it considers it appropriate to do so. 

16. Registrar.—(1) The Registrar of the Institute shall be appointed on such terms and conditions as 
may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the 
Institute and such other property of the Institute as the Board shall commit to his charge. 

(2) The Registrar shall act as the Secretary of the Board, the Senate and such committees as may be 

prescribed by the Statutes. 

(3)  The  Registrar  shall  be  responsible  to  the  Director-General  for  the  proper  discharge  of  his 

functions. 

(4) The Registrar shall exercise such other powers and perform such other duties as may be assigned 

to him by this Act or the Statutes or by the Director-General. 

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17. Powers and duties of other authorities and officers.—The powers and duties of authorities and 

officers, other than those hereinbefore mentioned, shall be determined by the Statutes. 

18.  Grants  by  Central  Government.—For  the  purpose  of  enabling  the  Institute  to  discharge  its 
functions  efficiently  under  this  Act,  the  Central  Government  may,  after  due  appropriation  made  by 
Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in 
such manner as it may think fit. 

19. Fund of Institute.—(1) The Institute shall maintain a Fund to which shall be credited— 

(a) all moneys provided by the Central Government; 

(b) all fees and other charges received by the Institute; 

(c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests 

or transfers; and 

(d) all moneys received by the Institute in any other manner or from any other source. 

(2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as 

the Institute may, with the approval of the Central Government, decide. 

(3)  The  fund  shall  be  applied  towards  meeting  the  expenses  of  the  Institute  including  expenses 

incurred in the exercise of its powers and discharge of its duties under this Act. 

20. Setting up of endowment fund.—Notwithstanding anything contained in section 19, the Central 

Government may direct the Institute to— 

(a) set up an endowment fund and any other fund for specified purpose; and 

(b) transfer money from its Fund to endowment fund or any other fund. 

21. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records 
and  prepare  an  annual  statement  of  accounts,  including  the  balance-sheet,  in  such  form  as  may  be 
specified,  in  accordance  with  such  general  directions  as  may  be  issued  by  the  Central  Government  in 
consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and 
any  expenditure  incurred  by  him  in  connection  with  such  audit  shall  be  payable  by  the  Institute  to  the 
Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with  the  audit  of  the  accounts  of  the  Institute  shall  have  the  same  rights,  privileges  and  authority  in 
connection with such audit as the Comptroller and Auditor-General of India, generally has in connection 
with  the  audit  of  the  Government  accounts,  and,  in  particular,  shall  have  the  right  to  demand  the 
production of books, accounts, connected vouchers and other documents and papers and to inspect any of 
the offices of the Institute. 

(4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any 
other  person appointed  by  him  in  this  behalf,  together  with  the  audit report  thereon  shall  be forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

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22.  Pension and provident fund.—(1) The Institute shall constitute, for the benefit of its employees, 
including the Director-General, in such manner and subject to such conditions as may be prescribed by 
the Statutes, such pension, insurance and provident funds as it may consider necessary. 

(2) Where any such provident fund has been so constituted, the Central Government may declare that 
the  provisions  of  the  Provident  Funds  Act,  1925  (19  of  1925)  shall  apply  to  such  fund  as  if  it  were  a 
Government Provident Fund. 

23.    Appointment.—All  appointments  of  the  staff  of  the  Institute,  except  that  of  the  Director-

General, shall be made in accordance with the procedure laid down in the Statutes by— 

(a) the Board, if the appointment is made on the academic staff in the post of Assistant Professor 
or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the 
pay-scale for which is the same or higher than that of Assistant Professor; and 

 (b) the Director-General, in any other case. 

24.  Statutes.—Subject  to the  provisions  of  this  Act, the  Statutes  may  provide  for  all  or  any  of  the 

following matters, namely:— 

(a) the formation of departments of teaching; 

(b) the institution of fellowships, scholarships, exhibitions, medals and prizes; 

(c)  the  classification,  the  method  of  appointment  and  the  determination  of  the  terms  and 

conditions of service of officers, teachers and other staff of the Institute; 

(d) the reservation of posts for the Scheduled Castes, the Scheduled Tribes and other backward 

categories of persons as may be determined by the Central Government; 

(e)  the  constitution  of  pension,  insurance  and  provident  funds  for  the  benefit  of  the  officers, 

teachers and other staff of the Institute; 

(f) the constitution, powers and duties of the authorities of the Institute; 

(g) the establishment and maintenance of halls and hostels; 

(h) the manner of filling up of vacancies among members of the Board; 

(i) the authentication of the orders and decisions of the Board; 

(j) the meetings of the Senate, the quorum at such meetings and the procedure to be followed in 

the conduct of their business; and 

(k) any other matter which by this Act is to be or may be prescribed by the Statutes. 

25.Statutes how made.—(1) The first Statutes of the Institute shall be framed by the Board with the 
previous approval of the Visitor and a copy of the same shall be laid as soon as may be before each House 
of Parliament. 

(2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the 

Statutes in the manner hereafter in this section provided. 

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(3) Every new Statute or addition to the Statute or any amendment or repeal of a Statute shall require 
the previous approval of the Visitor who may assent thereto or withhold assent or remit it to the Board for 
consideration. 

(4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless 

it has been assented to by the Visitor. 

26.  Ordinances.—Subject  to  the  provisions  of  this  Act  and  the  Statutes,  the  Ordinances  of  the 

Institute may provide for all or any of the following matters, namely:— 

 (a) the admission of the students to the Institute; 

(b) the reservation for the Scheduled Castes, the Scheduled Tribes and other backward categories 

of persons; 

(c) the courses of study to be laid down for all degrees, diplomas and certificates of the Institute; 

(d) the conditions under which students shall be admitted to the degree, diploma and certificate 

courses and to the examinations of the Institute and award of degrees, diplomas and certificates; 

(e) the conditions for award of fellowships, scholarships, exhibitions, medals and prizes; 

(f)  the  conditions  and  mode  of  appointment  and  duties  of  examining  body,  examiners  and 

moderators; 

(g) the conduct of examinations; 

(h) the maintenance of discipline among the students of the Institute; 

(i)  the  fees  to  be  charged  for  courses  of  study  in  the  Institute  and  for  admission  to  the 

examinations of degrees, diplomas and certificates of the Institute; 

(j) the conditions of residence of students of the Institute and the levying of the fees for residence 

in the halls and hostels and other charges; and 

(k)  any  other  matter  which  by  this  Act  or  the  Statutes  is  to  be  or  may  be  provided  for  by  the 

Ordinances. 

27.  Ordinances  how  made.—(1)  Save  as  otherwise  provided  in  this  section,  Ordinances  shall  be 

made by the Senate. 

(2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every 
Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the 
Board at its next succeeding meeting. 

(3)  The  Board  shall  have  power  by  resolution  to  modify  or  cancel  any  such  Ordinance  and  such 
Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may 
be. 

28. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between the Institute and any 
of  its  employees  shall,  at  the  request  of  the  employee  concerned  or  at  the  instance  of  the  Institute,  be 
referred  to  a Tribunal  of Arbitration  consisting  of  one  member  appointed  by  the  Institute,  one  member 
nominated by the employee and an umpire appointed by the Visitor. 

(2) The decision of the Tribunal of Arbitration shall be final and shall not be questioned in any court. 

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(3)  No  suit  or  proceeding  shall  lie  in  any  court  in  respect  of  any  matter  which  is  required  by                    

sub-section (1) to be referred to the Tribunal of Arbitration. 

(4) The Tribunal of Arbitration shall have power to regulate its own procedure. 

(5)  Nothing  in  any  law  for  the  time  being  in  force  relating  to  arbitration  shall  apply  to  arbitration 

under this section. 

CHAPTER III 

MISCELLANEOUS 

29. Acts and proceedings not to be invalidated by vacancies, etc.—No act of the Institute or Board 

or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— 

(a) any vacancy in, or defect in the constitution thereof; or 

(b) any defect in the election, nomination or appointment of a person acting as a member thereof; 

or 

(c) any irregularity in its procedure not affecting the merits of the case. 

30.  Sponsored  schemes.—Notwithstanding  anything  contained  in  this  Act,  whenever  the  Institute 
receives funds from any Government, the University Grants Commission or any other agency including 
industry sponsoring a research scheme or a consultancy assignment or a teaching programme or a chaired 
professorship or a scholarship, etc., to be executed or endowed at the Institute:— 

(a) the amount received shall be kept by the Institute separately from the Fund of the Institute and 

utilised only for the purpose of the scheme; and 

 (b)  the  staff  required  to  execute  the  same  shall  be  recruited  in  accordance  with  the  terms  and 

conditions stipulated by the sponsoring organisations: 

Provided that any money remaining unutilised shall be transferred to the endowment fund created 

under section 20 of this Act. 

31. Power of Institute to grant degrees, etc.—The Institute shall have the power to grant degrees, 
diplomas, certificates and other academic distinctions under this Act, which shall be equivalent to such 
corresponding degrees, diplomas, certificates and other academic distinctions granted by any University 
or Institute established or incorporated under any other law for the time being in force. 

32. 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 provision or 
give  such  direction  not  inconsistent  with  the  purposes  of  this  Act,  as  appears  to  it  to  be  necessary  or 
expedient for removing the difficulty: 

Provided that no such order shall be made after the expiry of two years from the appointed day. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

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33. Transitional provisions.—Notwithstanding anything contained in this Act— 

(a)  the  Board  of  Governors  of  the  Society  functioning  as  such  immediately  before  the 
commencement  of  this  Act  shall  continue  to  so  function  until  a  new  Board  is  constituted  for  the 
Institute  under  this  Act,  but  on  the  constitution  of  a new  Board  under this  Act the  members  of  the 
Board holding office before such constitution shall cease to hold office; and 

(b) until the first Statutes and the Ordinances are made under this Act, the rules and regulations, 
instructions and guidelines of the Society as in force, immediately before the commencement of this 
Act, shall continue to apply to the Institute in so far as they are not inconsistent with the provisions of 
this Act. 

34.  Statutes  and  Ordinances  to  be  published  in  the  Official  Gazette  and  to  be  laid  before 
Parliament.—(1)  Every  Statute  or  Ordinance  made  under  this  Act  shall  be  published  in  the  Official 
Gazette. 

(2) Every Statute or Ordinance made under this Act shall be laid, as soon as may be after it is made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the Statute or Ordinance or both Houses agree that the Statute or Ordinance should not be 
made, the Statute or Ordinance 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 Statute or Ordinance. 

(3)  The  power  to  make  Statutes  or  Ordinances  shall  include  the  power  to  give  retrospective  effect 
from a date not earlier than the date of commencement of this Act to Statutes or Ordinances or any of 
them but no retrospective effect shall be given to any Statute or Ordinance so as to prejudicially affect the 
interests of any person to whom such Statutes or Ordinances may be applicable. 

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