S JAIRAJ Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) Andhra Pradesh Khadi and Village Industries Board was constituted under Sec. 3 (1) of the Andhra Pradesh Khadi and Village Industries Board Act, being Act No. IV of 1959. The Board is a body-corporate having perpetual succession and a common seal, and possesses all the powers which go with such incorporation. Until the recent amendment, the Board consisted of not more than 7 members to be appointed by the Government, of whom two were to be officials - one representing the Industries Department and the other representing the Finance Department. The five non-official members were also nominated by the Government, one of them as the Chairman, One of the non-official members was also to be elected as Secretary to the Board. According to Sec. 5, prior to its amendment,

(2.) Because of the several irregularities in the working of the Board which came to light, Committees were appointed to investigate the causes of its unsatisfactory functioning, and for suggesting measures to improve its working. In pursuance of the recommendations so made, the Governor of Andhra Pradesh issued Ordinance NO. VI of 1981, on 4/06/1981. This Ordinance, inter alia, amended Secs. 2, 3, 4 and 5 in the following manner: the post of Secretary was abolished and, in its place, the post of Vice-Chairman was created. The composition of the Board was also changed. The Minister in charges of Khadi and Village Industries in the State was to be the ex officio member and Chairman of the Board and, besides him, the Board was to consist of eight members, four of whom were to be the officers of the Government, specified in Sec. 3 of the Ordinance. Sub-sec. (3) of Sec. 3 provided that the non-official members shall also have to be appointed by the Government. Sub-sec. (4) empowered the Chairman to nominate one of the non-Official members, to be the Vice-Chairman. The existing Sec. 5 was numbered as sub-sec. (1) and, in its place, sub-sec. (2) was introduced, empowering the Government to reduce the term of office of any member before the expiry of his term of office, without giving notice to such member, and appoint any other person as member in his place. Sec. 21 provided for the continuance of the existing members. Since the Ordinance has been replaced by Act 30 of 1981, called "Andhra Pradesh Khadi and Village Industries Board (Amendment) Act, 1981," the provisions whereof are identical with the provisions of the Ordinance, I would set out the provisions of the Act which are relevant for the present purpose.

(3.) The newly substituted sub-sections (2), (3), and (4) of Sec. 3 read as follows :-