Procedure for Payment of Salary in the case of certain Insitutions

§5

Summary

(1) The management of every institution shall for the purpose of disbursement of salaries to its teachers and employees open in a Scheduled Bank or a Co-operative Bank a separate account to be operated jointly by a representative of the management and by the Education Officer or such other officer as may be authorized by the Education Officer in that behalf: Provided that after the account is opened, the Education Officer may, if he is, subject to any rule made under this Act, satisfied that it is expedient in public interest so to do, instruct the Bank that the account shall be operated by the representative of the management alone, and may at any time revoke such instruction : Provided further that in the case referred to in the proviso to sub-section (2), or where a difficulty arises in the disbursement of salaries due to any default of the management, the Education Officer may instruct the Bank that the account shall be operated only by himself or by such other officer as may be authorised by him in that behalf and may at any time revoke such instruction. (2) The management shall deposit in the said account by such data as may be specified by general or special orders by the Education Officer, eighty-five per cent, or where the State Government or an officer authorised by the State Government having regard to the money required to be disbursed, directs a higher percentage, then such higher percentage as it or he may direct, of the amount received from the students as fees which in accordance with the general or special orders of the State Government in that behalf and for so long as such orders are not made in accordance with the directions of the Inspector, form part of the maintenance fund : Provided that where the said percentage of fees is not deposited as aforesaid, the Education Officer may, by order, prohibit the management from making any realisation of fees from the students and thereupon, the Education Officer may recover the fees (either through the teachers of the institution or in such other manner as he thinks fit), directly from the students and shall deposit the fees so recovered in the said account. (3) The entire amount of the maintenance grant and the amount of eighty-five per cent, or such higher percentage, as the State Government or an officer authorised by the State Government may, by general or special order in that behalf determine of the grants for reimbursement of freeship and other similar concessions shall also be paid by the State Government into the said account. (4) No moneys credited to the said account shall be applied to any purpose except the following, namely - (a) payment of the salaries falling due for any period after the appointed day; (b) credit of institutions' contribution, if any, to the provident fund accounts of the teachers and employees, and such portion of the balance in the account at the end of the month of July each year as exceeds the aggregate of one month's salary of the teachers and employees of the institution after meeting the liability for payment of their salaries for the period for which fees have been realised from the students shall be made over to the management for expenditure on the institution; (c) such other expenditure for the purposes of the institution as may be directed by the State Government or by an officer authorised by the State Government in that behalf. (5) The salary of a teacher or employee shall be paid by transfer of the amount from the said account to his account, if any, in the same Bank or if he has no account in that bank then by cheque. (6) In respect of a place where there is no scheduled Bank or a Co-operative Bank, the provision of this section shall apply with such modification as the State Government may by notification specify and the references in this section to Bank shall in that case be construed as references to a Post Office Savings Bank. (7) The management shall submit to the Director a return in respect of each financial year by the 30th June next following in the pro forma as may be specified by general or special order by the Director.

(1) The management of every institution shall for the purpose of disbursement of salaries to its teachers and employees open in a Scheduled Bank or a Co-operative Bank a separate account to be operated jointly by a representative of the management and by the Education Officer or such other officer as may be authorized by the Education Officer in that behalf: Provided that after the account is opened, the Education Officer may, if he is, subject to any rule made under this Act, satisfied that it is expedient in public interest so to do, instruct the Bank that the account shall be operated by the representative of the management alone, and may at any time revoke such instruction : Provided further that in the case referred to in the proviso to sub-section (2), or where a difficulty arises in the disbursement of salaries due to any default of the management, the Education Officer may instruct the Bank that the account shall be operated only by himself or by such other officer as may be authorised by him in that behalf and may at any time revoke such instruction. (2) The management shall deposit in the said account by such data as may be specified by general or special orders by the Education Officer, eighty-five per cent, or where the State Government or an officer authorised by the State Government having regard to the money required to be disbursed, directs a higher percentage, then such higher percentage as it or he may direct, of the amount received from the students as fees which in accordance with the general or special orders of the State Government in that behalf and for so long as such orders are not made in accordance with the directions of the Inspector, form part of the maintenance fund : Provided that where the said percentage of fees is not deposited as aforesaid, the Education Officer may, by order, prohibit the management from making any realisation of fees from the students and thereupon, the Education Officer may recover the fees (either through the teachers of the institution or in such other manner as he thinks fit), directly from the students and shall deposit the fees so recovered in the said account. (3) The entire amount of the maintenance grant and the amount of eighty-five per cent, or such higher percentage, as the State Government or an officer authorised by the State Government may, by general or special order in that behalf determine of the grants for reimbursement of freeship and other similar concessions shall also be paid by the State Government into the said account. (4) No moneys credited to the said account shall be applied to any purpose except the following, namely - (a) payment of the salaries falling due for any period after the appointed day; (b) credit of institutions' contribution, if any, to the provident fund accounts of the teachers and employees, and such portion of the balance in the account at the end of the month of July each year as exceeds the aggregate of one month's salary of the teachers and employees of the institution after meeting the liability for payment of their salaries for the period for which fees have been realised from the students shall be made over to the management for expenditure on the institution; (c) such other expenditure for the purposes of the institution as may be directed by the State Government or by an officer authorised by the State Government in that behalf. (5) The salary of a teacher or employee shall be paid by transfer of the amount from the said account to his account, if any, in the same Bank or if he has no account in that bank then by cheque. (6) In respect of a place where there is no scheduled Bank or a Co-operative Bank, the provision of this section shall apply with such modification as the State Government may by notification specify and the references in this section to Bank shall in that case be construed as references to a Post Office Savings Bank. (7) The management shall submit to the Director a return in respect of each financial year by the 30th June next following in the pro forma as may be specified by general or special order by the Director.

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