#THE FINANCE COMMISSION (MISCELLANEOUS PROVISIONS) ACT, 1951 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 
1.  Short title. 
2.  Definition. 
3.  Qualifications for appointment as, and the manner of selection of, members of the Commission. 
4.  Personal interest to disqualify members. 
5.  Disqualifications for being a member of the Commission. 
6.  Term of office of members and eligibility for reappointment. 
7.  Conditions of service and salaries and allowances of members. 
8.  Procedure and powers of the Commission. 



#THE FINANCE COMMISSION (MISCELLANEOUS PROVISIONS) ACT, 1951 

##ACT NO. 33 OF 1951 

[16th May, 1951.] 

An  Act  to  determine  the  qualifications  requisite  for  appointment  as  members  of  the  Finance 
  Commission and the manner in which they shall be selected, and to prescribe their powers. 

  BE it enacted by Parliament as follows:— 

1. **Short title.**—This  Act  may  be  called  the  Finance  Commission  (Miscellaneous  Provisions) 
Act, 1951. 

2. **Definition.**—In  this  Act,  “the  Commission”  means  the  Finance  Commission  constituted  by  the 
President pursuant to clause (1) of article 280 of the Constitution. 

3. **Qualifications  for  appointment  as,  and  the  manner  of  selection  of,  members  of  the 
Commission.**—The Chairman of the Commission shall be selected from among persons who have had 
experience in public affairs, and the four other members shall be selected from among persons who— 

  (a) are, or have been, or are qualified to be appointed as Judges of a High Court; or 

  (b) have special knowledge of the finances and accounts of Government; or 

  (c) have had wide experience in financial matters and in administration; or 

  (d) have special knowledge of economies. 

4. **Personal interest to disqualify members.**—Before  appointing  a  person  to  be  a  member  of  the 
Commission,  the  President  shall  satisfy  himself  that  that  person  will  have  no  such  financial  or  other 
interest as is likely to affect prejudicially his functions as a member of the Commission; and the President 
shall also satisfy himself from time to time with respect to every member of the Commission that he has 
no such interest and any person who is, or whom the President proposes to appoint to be, a member of the 
Commission shall, whenever required by the President so to do, furnish to him such information as the 
President considers necessary for the performance by him of his duties under this section. 

5. **Disqualifications for being a member of the Commission.—A person shall be disqualified for 
being appointed as, or for being, a member of the Commission,— 

  (a) if he is of unsound mind; 

  (b) if he is an undischarged insolvent; 

  (c) if he has been convicted of an offence involving moral turpitude; 

  (d) if he has such financial or other interest as is likely to affect prejudicially his functions as a 
member of the Commission. 

6. **Term of office of members and eligibility for reappointment.**—Every  member  of  the 
Commission shall hold office for such period as may be specified in the order of the President appointing 
him, but shall be eligible for reappointment: 

  Provided that he may, by letter addressed to the President, resign his office. 

7. **Conditions  of  service  and  salaries  and  allowances  of  members.**— (1) The members  of  the 
Commission shall render wholetime or part-time service to the Commission as the President may in each 
case specify, and there shall be paid to the members of the Commission such fees or salaries and such 
allowances as the Central Government may, by rules made by notification in the official Gazette in this 
behalf, determine. 

(2) Every rule made under this section 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 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. 

8. **Procedure and powers of the Commission.**—(1)  The  Commission  shall  determine  their 
procedure and in the performance of their functions shall have all the powers of a civil court under the 
Code  of  Civil  Procedure,  1908  (5  of  1908),  while  trying  a  suit  in  respect  of  the  following  matters, 
namely:— 

  (a) summoning and enforcing the attendance of witnesses; 

  (b) requiring the production of any document; 

  (c) requisitioning any public record from any court or office. 

(2) The Commission shall have power to require any person to furnish information on such points or 
matters  as  in  the  opinion  of  the  Commission  may  be  useful  for,  or  relevant  to,  any  matter  under  the 
consideration of the Commission and any person so required shall, notwithstanding anything contained 
in sub-section (2) of section 54 of the Indian Income Tax Act, 1922 or in any other law for the time being 
in force, be deemed to be legally bound to furnish such information within the meaning of section 176 of 
the Indian Penal Code (45 of 1860). 

(3) The Commission shall be deemed to be a civil court for the purposes of sections 480 and 482 of 
the Code of Criminal Procedure, 1898 (5 of 1898). 

*Explanation.*—For  the  purposes  of  enforcing  the  attendance  of  witnesses,  the  local  limits  of  the 
Commission's jurisdiction shall be the limits of the territory of India.