 the national institute of design bill, 2013————— arrangement of clauses————— chapter i preliminary clauses1  short title and commencement 2 declaration of national institute of design, ahmedabad, as an institution of nationalimportance3 definitions chapter ii the institute4 incorporation of the institute 5 effect of incorporation of the institute 6 powers of institute 7 institute be open to all races, creeds and classes 8 teaching at institute 9 visitor10 authorities of institute 11 governing council 12 term of office of, vacancies among, and allowances payable to chairperson and othermembers of governing council13 meeting of governing council 14 powers and functions of governing council 15 senate 16 functions of senate 17 functions, powers and duties of chairperson 18 director 19 dean 20 registrar 21 powers and duties of other authorities and officers 22 grants by central government 23 fund of institute 24 setting up of endowment fund 25 accounts and audit 26 pension and provident fund clauses27 appointment of staff 28 statutes 29 statutes how to be made 30 ordinances 31 ordinances how to be made 32  arbitral tribunal chapter iii miscellaneous33 acts and proceedings not to be invalidated by vacancies, etc 34 sponsored schemes 35  power of institute to grant degrees, etc 36 powers of central government to issue directions 37 institute to be public authority under right to information act, 2005 38 power of central government to make rules 39 transitional provisions 40 statutes and ordinances to be published in the official gazette and to be laid beforeparliament41 power to remove difficulties the national institute of design bill, 2013 a billto declare the institution known as the national institute of design, ahmedabad, to be aninstitution of national importance for the promotion of quality and excellence in education, research and training in all disciplines relating to design and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-fourth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the national institute of design act, 20135short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint and different dates may be appointed for different provisions of this act2 whereas the objects of the institution known as the national institute of design, ahmedabad, are such as to make it the institution of national importance, it is hereby declared that the national institute of design, ahmedabad is an institution of national importance10declaration of national institute of design, ahmedabad, as an institution of national importance3 in this act, unless the context otherwise requires,—definitions(a) "chairperson" means the chairperson of the governing council nominated under clause (a) of section 11;(b) "governing council" means the governing council of the institute, as constituted under section 11;(c) "dean", in relation to any institute campus, means the dean of such institute campus;5(d) "design" means a rational, logical and sequential innovative process for the purpose of transferring culture to viable products and services and for providing a competitive edge to products and services, and includes industrial design, communication design, textile and apparel design, lifestyle design, experiential design, exhibition design, craft and traditional sector design;(e) "director" means director of the institute, as appointed under section 18;10(f) "fund" means the fund of the institute maintained under section 23; (g) "institute" means the national institute of design, ahmedabad, incorporated under section 4;15(h) "institute campus" means the campus of the institute located at bengaluru in the state of karnataka and gandhinagar in the state of gujarat, or such other campus as may be established by the institute at any place within india or outside india;(i) "notification" means a notification published in the official gazette; (j) "prescribed" means prescribed by rules made under this act; (k) "registrar" means registrar of the institute; (l) "senate" means the senate of the institute;20(m) "society" means the national institute of design, ahmedabad, registered as a society under the societies registration act, 1860;21 of 1860(n) "statutes" and "ordinances" means the statutes and the ordinances of the institute made under this act chapter ii25 the instituteincorporation of the institute4 (1) the national institute of design, ahmedabad, shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and shall, by that name, sue or be sued30(2) the body corporate constituting the institute shall consist of a chairperson, a director and other members of the governing council for the time being of the institute(3) the headquarters of the institute shall be in the district of ahmedabad in the state of gujarat(4) the institute may establish an institute campus at such other place within india or outside india, as it may deem fit:35provided that each campus of the national institute of design, ahmedabad, established before the commencement of this act, at bengaluru in the state of karnataka and gandhinagar in the state of gujarat, shall be deemed to be the institute campus5 on and from the date of commencement of this act,—40effect of incorporation of the institute(a) any reference to the society in any law (other than this act) or in any contract or other instrument shall be deemed as a reference to the institute incorporated under this act;(b) all property, movable and immovable of, or belonging to, the society, shall vest in the institute;(c) all the rights and liabilities of the society shall be transferred to, and be, the rights and liabilities of, the institute;(d) any reference to any campus of the institute, established before thecommencement of this act, shall be deemed as a reference to that institute campus;510(e) every person employed by the society, immediately before suchcommencement, shall hold his office or service in the institute including the institute campuses, located at bengaluru in the state of karnataka and at gandhinagar in the state of gujarat, 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 enacted, 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:15provided that if the alteration so made is not acceptable to such employee, hisemployment 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 employee20powers of institute6 subject to the provisions of this act, the institute shall exercise the following powers and perform the following duties, namely:—(a) to provide for instructions, research and training in the areas or disciplinesrelating to design and to nurture and promote quality and excellence thereof in such areas or disciplines;25(b) to develop courses leading to graduate and post-graduate degrees, doctoraland post-doctoral distinctions and research in all areas or disciplines relating to design;(c) to hold examinations and grant degrees, and diplomas and other academicdistinctions or titles in the areas or disciplines relating to design;(d) to confer honorary degrees, awards or other distinctions in the areas ordisciplines relating to design;30(e) to institute and award fellowships, scholarships, exhibitions, prizes and medals; (f) to fix, demand and receive fees and other charges; (g) to establish, maintain and manage halls and hostels for the residence of thestudents;35(h) to supervise and control the residence and regulate the discipline of studentsof the institute and to make arrangements for promoting their health, general welfare and cultural and corporate life;(i) to institute academic and other posts and to make appointments thereto(except in the case of the director);(j) to frame statutes and ordinances and to alter, modify or rescind the same;40(k) to co-operate with educational or other institutions in any part of the worldhaving 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;| (                                                                                          | l   | ) to act as a nucleus for interaction between academia and industry by              ||--------------------------------------------------------------------------------------------|-----|-------------------------------------------------------------------------------------|| encouraging exchange of designers 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;                                                     |     |                                                                                     || 5                                                                                          |     |                                                                                     || (                                                                                          | m   | ) to establish, equip and maintain workshops or laboratories or studios with        || modern machinery and equipments in order to undertake scientific and technological         |     |                                                                                     || research for creating good designs for the production of goods and services and to         |     |                                                                                     || provide funds for such works and for payment to any person or persons engaged in           |     |                                                                                     || service, training and research work whether in such workshop or laboratory or studio;      |     |                                                                                     || 10                                                                                         |     |                                                                                     || (                                                                                          | n   | ) to acquire any patent or licence relating to such invention, improvement or       || design or standardisation marks whether for general or specific purposes;                  |     |                                                                                     || (                                                                                          | o   | ) to undertake consultancy in the areas or disciplines relating to design;          || (                                                                                          | p   | ) to deal with any property belonging to, or vested in, the institute, in such      || manner as the institute may deem fit for advancing the objects of the institute;           |     |                                                                                     || 15                                                                                         |     |                                                                                     || (                                                                                          | q   | ) to receive gifts, grants, donations or benefactions from the government and       || to receive bequests, donations and transfers of movable or immovable properties from       |     |                                                                                     || testators, donors or transferors, as the case may be;                                      |     |                                                                                     || (                                                                                          | r   | ) to encourage and improve education of persons who are engaged or are likely       || to be engaged in the service, training or research activities by grant of loans,           |     |                                                                                     || scholarships or other monetary assistance or otherwise;                                    |     |                                                                                     || 20                                                                                         |     |                                                                                     || (                                                                                          | s   | ) to prepare, print, publish, issue, acquire and circulate books, papers,           || periodicals, exhibits, films, slides, gadgets, circulars and other literary undertakings,  |     |                                                                                     || dealing with or having a bearing upon the subject of industrial design and allied fields;  |     |                                                                                     || 25                                                                                         |     |                                                                                     || (                                                                                          | t   | ) to establish, form and maintain museums, libraries and collections of literature  || and films, slides, photographs, prototypes and other information relating to design        |     |                                                                                     || and allied subjects;                                                                       |     |                                                                                     || (                                                                                          | u   | ) to nominate designers, engineers (mechanical or electrical or civil), architects, || craftsmen, technicians or investigators to study in india or outside india in regard to    |     |                                                                                     || the service, training and research in such fields as the institute may think fit;          |     |                                                                                     || 30                                                                                         |     |                                                                                     || (                                                                                          | v   | ) to retain or employ skilled professional, technical advisers, consultants,        || workers or craftsmen in connection with the objects of the institute;                      |     |                                                                                     || (                                                                                          | w   | ) to encourage artisans, technicians and others with inventive skill to work        || out details and specifications of processes, appliances and gadgets by giving awards,      |     |                                                                                     || financial or technical assistance;                                                         |     |                                                                                     || 35                                                                                         |     |                                                                                     || (                                                                                          | x   | ) to construct buildings and alter, extend, improve, repair, enlarge or modify      || and to provide and equip the same with light, water, drainage, furniture, fittings and all |     |                                                                                     || other accessories;                                                                         |     |                                                                                     || (                                                                                          | y   | ) ) to borrow and raise moneys, with or without security or on the security of a    || mortgage, charge, or hypothecation or pledge of any of the movable or immovable            |     |                                                                                     || properties belonging to the institute or in any other manner;                              |     |                                                                                     || 40                                                                                         |     |                                                                                     || (                                                                                          | z   | ) to do all such things as may be necessary, incidental or conducive to the         || attainment of all or any of the objects of the institute                                  |     |                                                                                     |(2) notwithstanding anything contained in sub-section (1), the institute shall not dispose of in any manner any immovable property without the prior approval of the visitor45institute be open to all races, creeds and classes7 (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 of transfer of any property shall be accepted by the institute, which in the opinion of the governing council involves conditions or obligations opposed to the spirit and objects of the instituteteaching at institute58 all teaching at the institute and the institute campuses shall be conducted by or in the name of the institute in accordance with the statutes and the ordinances made in this behalfvisitor9 (1) the president of india shall be the visitor of the institute(2) the visitor may appoint one or more persons to review the work and progress of the institute or any institute campus and to hold inquiries into the affairs thereof and to report thereon in such manner as the visitor may direct10(3) upon receipt of any such report, the visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the institute shall be bound to comply with such directions10 the following shall be the authorities of the institute, namely:––authorities of institute(a) the governing council,15(b) a senate, and (c) such other authorities as may be declared by the statutes to be the authorities of the institute 11 the governing council shall consist of the following members, namely:—governing council20(a) a chairperson, who shall be an eminent academician, scientist or technologistor professional or industrialist, to be nominated by the visitor;(b) the director, ex officio;(c) the financial adviser in the ministry or department of the government ofindia dealing with the national institute of design, ex officio;25(d) the joint secretary, in the ministry or department in the government of indiadealing with the national institute of design, ex officio;(e) one representative of the ministry or department of the government of indianot below the rank of joint secretary dealing with higher education, to be nominated by the secretary of that ministry or department, ex officio;30(f) one representative of the ministry or department of the government of indianot below the rank of joint secretary dealing with information technology to be nominated by the secretary of that ministry or department, ex officio;(g) one representative from the state in which the institute campus is located, tobe nominated by that state government;35(h) five professionals, one each from the fields of architecture, engineering, finearts, mass media and technology, to be nominated by the central government;(i) an outstanding designer, to be nominated by the visitor in consultation withthe central government;( j) a management expert, to be nominated by the chairperson;40(k) a representative of the micro, small and medium enterprises, to be nominatedby the central government;(l) three persons to be nominated by the senate from amongst personsrecommended by companies, firms or individuals who have provided financial assistance or contribution to the institute:provided that the threshold of financial assistance or contribution and other requirements to qualify for such nomination shall be such as may be provided for in the statutes; and(m) dean of each institute campus, ex officio512 (1) the term of office of the chairperson or any other member of the governingcouncil (other than an ex officio member) shall be three years from the date of his nomination(2) save as otherwise provided in this section, the term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member10(3) the term of office of a member of the governing council nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been nominatedterm of office of, vacancies among, and allowances payable to chairperson and other members of governing council(4) notwithstanding anything contained in this section, an outgoing member shall, unless the governing council otherwise directs, continue in office until another person is nominated as a member in his place15(5) the members of the governing council shall be entitled to such allowances, if any, from the institute as may be provided for in the statutes but no member other than the persons referred to in clauses (b) and (m) of section 11 shall be entitled to any salary by reason of this sub-section20meeting of governing council13 the governing council shall meet at least four times in a year at such place andtime and observe such rules of procedure in regard to the transaction of business at its meetings, as may be determined by the governing councilpowers and functions of governing council14 (1) subject to the provisions of this act, the governing council shall be responsiblefor the general superintendence, direction and control of the affairs of the institute and shall exercise all the powers of the institute not otherwise provided for by this act, the statutes and the ordinances, and shall have the power to review the acts of the senate25(2) without prejudice to the provisions of sub-section (1), the governing council shall––| (                         | a   | ) take decisions on questions of policy relating to the administration and   ||---------------------------|-----|------------------------------------------------------------------------------|| working of the institute; |     |                                                                              || 30                        |     |                                                                              || (                         | b   | ) take decision on the establishment of new institute campus at any place in || india or outside india;   |     |                                                                              || (                         | c   | ) institute courses of study at the institute;                               || (                         | d   | ) institute academic and other posts and to make appointments thereto;       |(e) make statutes;35(f) consider and modify or cancel ordinances; (g) consider and pass resolutions on the annual report, the annual accounts andthe budget estimates of the institute including each of the institute campuses for the next financial year, as it thinks fit and submit them to the central government together with a statement of its development plans; and40(h) exercise such other powers and perform such other duties as may be conferredor imposed upon it by this act or the statutes(3) the governing council shall have 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) the governing council shall have the power to enter into arrangements with the central government, state governments and other public or private organisations or45individuals in india or outside india for securing and accepting endowments, grants, donations or gifts to the institute on mutually agreed terms and conditions:provided that the conditions of such grant, donation or gift, if any, shall not be inconsistent or in conflict with the nature or objects of the institute and the provisions of this act5(5) the governing council shall have the power to take over and acquire by purchase,gift or otherwise from government and other public bodies or private individuals willing to transfer movable and immovable properties, endowments or other funds together with any attendant obligations and engagements not inconsistent with the provisions of this act(6) the governing council may by specific resolution to this effect delegate to the chairperson such of its powers for the conduct of business, as it may deem necessary1015 the senate of the institute shall consist of the following persons, namely:––senate(a) the director, ex officio, who shall be the chairman of the senate;(b) dean of each institute campus, ex officio;(c) senior professors of the institute and of the institute campuses;15(d) three persons, not being employees of the institute, to be nominated by thechairperson in consultation with the director, from amongst educationists of repute,one each from the fields of science, engineering and humanities and at least one of them shall be a woman;20(e) one alumnus of the institute to be nominated by the chairperson inconsultation with the director; and(f) such other members of the staff as may be laid down in the statutesfunctions of senate2516 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 statutes17 (1) the chairperson shall ordinarily preside at the meetings of the governing council and at the convocations of the institutefunctions, powers and duties of chairperson30(2) it shall be the duty of the chairperson to ensure that the decisions taken by the governing council are implemented(3) the chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this act or the statutesdirector18 (1) the director of the institute shall be appointed by the central government for a tenure of five years in such manner and on such terms and conditions of service as may be prescribed35(2) the director shall be appointed on the recommendations of the selection committee constituted by the central government(3) the director shall be the principal executive officer of the institute and shall be responsible for—40(a) proper administration of the institute and for imparting of instructions andmaintenance of discipline therein;(b) co-ordination of activities of all the institute campuses;45(c) examining the development plans of the institute and each institute campusand to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; and(d) examining the annual budget estimates of the institute and each institute campus and to recommend to the central government the allocation of funds for that purpose| (                                                            |   4 | ) the director shall exercise such other powers and perform such other duties as   ||--------------------------------------------------------------|-----|------------------------------------------------------------------------------------|| may be assigned to him by this act, statutes and ordinances |   5 |                                                                                    || (                                                            |   5 | ) the director shall submit annual reports and accounts to the governing council  |(6) the central government shall have the power to remove the director before expiry of his tenure, if it considers it appropriate to do sodean1019 (1) the dean of each institute campus shall be appointed on such terms andconditions as may be laid down by the statutes and shall exercise such powers and perform such duties as may be assigned to him by this act or the statutes or by the director(2)   without prejudice to the provisions of sub- section (1), the dean of each institute campus shall look after all academic, administrative, research and other activities of the institute campus in consultation with the directorregistrar1520 (1) the registrar of the institute shall be appointed on such terms and conditionsas 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 governing council shall commit to his charge20(2) the registrar shall act as the secretary of the governing council, the senate and such committees as may be prescribed by the statutes(3) the registrar shall be responsible to the director 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 director2521  the powers and duties of authorities and officers, other than those hereinbeforementioned, shall be determined by the statutespowers and duties of other authorities and officers grants by central government3022  for the purpose of enabling the institute to discharge its functions efficientlyunder 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 fit23  (1) the institute shall maintain a fund to which shall be credited––fund of institute(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; and35(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, decide40(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 act24 notwithstanding anything contained in section 23, the central government may direct the institute to––setting up of endowment fund(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 fundaccounts and audit25 (1) the institute shall maintain proper accounts and other relevant records andprepare an annual statement of accounts, including the balance sheet, in such form as may be prescribed, in accordance with such general directions as may be issued by the central government in consultation with the comptroller and auditor- general of india5(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 india10(3) the comptroller and auditor- general of india and any person appointed by him inconnection 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 institute15| (                                                                                            | 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                                   |                                                                                       |                                                                                          || 20                                                                                           |                                                                                       |                                                                                          || pension and                                                                                  |                                                                                       |                                                                                          || provident                                                                                    |                                                                                       |                                                                                          || fund                                                                                        |                                                                                       |                                                                                          || 26                                                                                          | (                                                                                     | 1                                                                                        || director, such pension, insurance and provident funds as it may deem fit, in such manner and |                                                                                       |                                                                                          || subject to such conditions as may be laid down in the statutes                              |                                                                                       |                                                                                          || 19 of 1925                                                                                  |                                                                                       |                                                                                          || (                                                                                            | 2                                                                                     | ) where any provident fund has been constituted under sub-section (                      || government may declare that the provisions of the provident funds act, 1925 shall apply to   |                                                                                       |                                                                                          || such fund as if it were a government provident fund                                         |                                                                                       |                                                                                          || 25                                                                                           |                                                                                       |                                                                                          || appointment                                                                                  |                                                                                       |                                                                                          || of staff                                                                                    |                                                                                       |                                                                                          || 27                                                                                          | all appointments of the staff of the institute, except that of the director, shall be |                                                                                          || made in accordance with the procedure laid down in the statutes by––                         |                                                                                       |                                                                                          || (                                                                                            | a                                                                                     | ) the governing council , if the appointment is made on the academic staff in            || the post of senior designer or 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 senior designer or professor ; and                                       |                                                                                       |                                                                                          |30(b) the director, in any other casestatutes28 subject to the provisions of this act, the statutes may provide for all or any of the following matters, namely:—(a) conferment of honorary degrees;35(b) formation of departments of teaching, establishment of workshops,laboratories and studios;(c) fees to be charged for courses of study in the institute including institutecampus and for admission to the examinations of degrees, diplomas and certificates of the institute;(d) institution of fellowships, scholarships, exhibitions, medals and prizes;40(e) qualifications of teachers of the institute; (f) classification, method of appointment and the determination of the terms andconditions of service of officers, teachers and other staff of the institute;45(g) reservation of posts for the scheduled castes, the scheduled tribes andother backward classes of persons as may be determined by the central government;(h) constitution of pension, insurance and provident funds for the benefit of theofficers, teachers and other staff of the institute;| (                                                                                           | i   | ) constitution, powers and duties of the authorities of the institute and institute   ||---------------------------------------------------------------------------------------------|-----|---------------------------------------------------------------------------------------|| campuses;                                                                                   |     |                                                                                       || (                                                                                           | j   | ) establishment and maintenance of halls and hostels;                                 || (                                                                                           | k   | ) conditions of residence of students of the institute and the levying of the         || fees for residence in the halls and hostels and other charges;                              |     |                                                                                       || 5                                                                                           |     |                                                                                       || (                                                                                           | l   | )                                                                                     || (                                                                                           | m   | ) allowances to be paid to the chairperson and members of the governing               || council;                                                                                    |     |                                                                                       || (                                                                                           | n   | ) authentication of the orders and decisions of the governing council;                || 10                                                                                          |     |                                                                                       || (                                                                                           | o   | )                                                                                     || such meetings and the procedure to be followed in the conduct of their business;            |     |                                                                                       || (                                                                                           | p   | )                                                                                     || statutes                                                                                   |     |                                                                                       || statutes how                                                                                |     |                                                                                       || to be made                                                                                 |     |                                                                                       || 15                                                                                          |     |                                                                                       || 29                                                                                         | (   | 1                                                                                     || 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 governing council may, from time to time, make new or additional statutes or may amend or repeal the statutes in the manner hereinafter in this section provided20(3) every new statute or addition to the statutes or any amendment or repeal of a statute shall require the previous approval of the visitor who may assent thereto or withhold assent therefrom or remit it to the governing council for reconsideration(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 visitorordinances30 subject to the provisions of this act and the statutes, the ordinances of theinstitute may provide for all or any of the following matters, namely:––25(a) admission of the students to the institute including institute campus; (b) reservation in admission to various courses or programmes of the institutefor the scheduled castes, the scheduled tribes and other backward classes;(c) courses of study to be laid down for all degrees, diplomas and certificates ofthe institute;30(d) conditions under which students shall be admitted to the degree, diplomaand certificate courses and to the examinations of the institute and award of degrees, diplomas and certificates;(e) conditions for award of fellowships, scholarships, exhibitions, medals andprizes;35(f) conditions and mode of appointment and duties of examining body, examinersand moderators;(g) conduct of examinations; (h) maintenance of discipline among the students of the institute; and40(i) any other matter which by this act or the statutes is to be or may be provided for by the ordinances31 (1) save as otherwise provided in this section, ordinances shall be made by the senateordinances how to be made(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 governing council and shall be considered by the governing council at its next meeting5(3) the governing council 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 bearbitral tribunal1032 (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 an arbitral tribunal 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 arbitral tribunal shall be final and shall not be questioned in any court15(3) no suit or proceeding shall lie in any court in respect of any matter which isrequired by sub-section (1) to be referred to the arbitral tribunal(4) the arbitral tribunal 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 section20 chapter iii miscellaneous33 no act of the institute or governing council or senate or any other authority set up under this act or the statutes, shall be invalid merely by reason of —| (              ||----------------|| acts and       || proceedings    || not to be      || invalidated by || vacancies,     || etc           |25(b) any defect in the election, nomination or appointment of a person acting as amember thereof; or(c) any irregularity in its procedure not affecting the merits of the casesponsored schemes3034 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 fundof the institute and utilised only for that purpose; and(b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisations:35provided that any money remaining unutilised shall be transferred to the endowment fund set up under section 24 of this act40power of institute to grant degrees, etc35 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 force36 the central government may give such directions as it may deem necessary to the institute for effective administration of this act and the institute shall comply with such directionspowers of central government to issue directions37  the provisions of the right to information act, 2005 shall apply to the institute, as if it were a public authority as defined in clause (h) of section 2 of the right to information act, 200522 of 2005institute to be public authority under right to information act, 2005538 (1) the central government may, by notification, make rules to carry out the purposes of this actpower of central government to make rules(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:—| (                                 | a   | ) the manner of appointment of the director and terms and conditions of his    ||-----------------------------------|-----|--------------------------------------------------------------------------------|| service under sub-section (       | 1   | ) of section 18;                                                               || 10                                |     |                                                                                || (                                 | b   | ) the form and the manner in which the books of account of the institute shall || be maintained under sub-section ( | 1   | ) of section 25;                                                               || (                                 | c   | ) any other matter which is required to be, or may be, prescribed             || 15                                |     |                                                                                || 20                                |     |                                                                                |(3) every rule made by the central government 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 rule39 notwithstanding anything contained in this act––transitional provisions25(a) the governing council of the institute functioning as such, immediately before the commencement of this act, shall continue to so function until a new governing council is constituted for the institute under this act, but on the constitution of a new governing council under this act, the members of the governing council holding office before such constitution shall cease to hold office;30(b) the policy and planning committee of the society, functioning as such before the commencement of this act, shall be deemed to be the senate constituted under this act and continue to so function until a new senate is constituted for the institute under this act;35(c) until the first statutes and ordinances are made under this act, the rules andregulations, instructions, guidelines and bye-laws of the society, in force immediately before the commencement of this act, shall continue to apply to the institute and institute campuses located at bengaluru or gandhinagar, as the case may be, in so faras they are not inconsistent with the provisions of this act40 (1) every statute or ordinance made under this act shall be published in the official gazette40statutes and ordinances to be published in the official gazette and to be laid before parliament45(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 applicable5power to remove difficulties41 (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 provisions or give such directions not inconsistent with the purposes of this act, as appears to it to be necessary or expedient for removing the difficulty:10provided that no such order shall be made after the expiry of two years from theappointed 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 statement of objects and reasonsthe national institute of design (nid), ahmedabad was set up in the country in the year 1961 as a society  registered under the societies registration act, 1860 and also under the bombay public trusts act, 1950, by the government of india in the ministry of industry (now known as the ministry of commerce and industry), as an autonomous institution nid is an educational and training institution which conducts graduate and post-graduate programmes in the area of design education2 realising the strategic importance of design for national and industrial competitiveness of both manufacturing and service industries,  nid is already striving for excellence in the field of design education in the country nid products, comprising its students and alumni, form the spearhead of the design initiative in india despite this, the potential of indian design has not been fully exploited and there is an immense scope for future growth which may be achieved by establishing an institution of national importance for imparting design education with international benchmarking which can award degrees, function as an apex body to train teachers and trainers imparting design education in the country and provide the interface between academia and the industry  in order to achieve the desired objectives, it is expedient to enact a law declaring nid as an institution of national importance in the interest of public at large3 the national institute of design bill, 2013, inter alia, provides for declaration of national institute of design, ahmedabad, as an institution of national importance and make it a body corporate to nurture and promote quality and excellence in design education; to conduct research and training in all disciplines related to design; to confer honorary degrees, diplomas, certificates, awards and  other academic distinctions or titles in disciplines relating to design and to act  as a nucleus for interaction between academia and industry by encouraging exchange of designers and other technical staff between the institute and the industry and by undertaking sponsored and funded research as well as consultancy projects4 the bill seeks to achieve the above objectsanand sharmanew delhi;the 21st february, 2013 notes on clausesclause 1—this clause relates to the short title and commencement of the proposed legislationclause 2—this clause relates to the declaration of the national institute of design, ahmedabad as an institution of national importanceclause 3—this clause defines certain expressions used in the proposed legislationthese definitions, inter alia, include "governing council", "design", "institute", "registrar"clause 4—this clause relates to incorporation of the national institute of design, ahmedabad as a body corporate, consisting of a chairperson, a director and other members of the governing council the headquarters of the institute shall be at ahmedabad and the institute may establish an institute campus at such other place within india or outside indiaclause 5—this clause relates to the effect of incorporation of the institute that all property, movable and immovable of, or belonging to the society and that every person employed by the society, immediately before such commencement, shall hold his office or service in the institute including the institute campuses, by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privilegesclause 6—this clause relates to the powers and duties of the institute which includes, inter alia, to provide for instructions, research and training in the areas or disciplines relating to design; to develop courses leading to graduate and post-graduate degrees, doctoral and post-doctoral distinctions and research in all areas or disciplines relating to design and to frame statutes and ordinances and to alter, modify or rescind the sameclause 7 - this clause provides that the institute shall be open to all races, creeds, and classesclause 8—this clause provides that all teaching at the institute and the institute campuses shall be conducted by or in the name of the institute in accordance with the statutes and ordinancesclause 9—this clause provides that the president shall be the visitor of the institute who shall in that capacity appoint one or more persons to review the work and progress of the institute or any institute campusclause 10—this clause relates to authorities of the institute which includes the governing council, a senate and such other authorities as may be declared by the statutesclause 11—this clause relates to the composition of the governing council consisting of a chairperson, the director, dean and other membersclause 12—this clause provides the term of office of the chairperson and other members of the governing council other than ex-officio members and filling of their vacancies and allowances payable to themclause 13—this clause provides that the governing council 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 governing councilclause 14—this clause relates to powers and functions of the governing council, which shall be responsible for the general superintendence, direction and control of the affairs of the institute and shall have the power to review the acts of the senateclause 15—this clause provides the composition of the senate consisting of  the director, dean of each institute campus, senior professors of the institute, three persons and one alumnus of the institute nominated by the chairperson in consultation with the director and  such other members of the staff as laid down in the statutesclause 16—this clause relates to the functions of the senateclause 17—this clause relates to functions, powers and duties of the chairperson, as assigned to him by the proposed legislation or the statutesclause 18—this clause provides the terms and conditions of service of  the director of the institute who shall be appointed by the central government for a tenure of five years on the recommendations of the selection committee constituted by the central governmentclause 19— this clause relates to the appointment, power and duties assigned to the dean of the institute by the proposed legislation or the statutes or by the director which provides that the dean of each institute campus shall look after all academic, administrative, research and other activities of the institute campus in consultation with the directorclause 20— this clause relates to the appointment, powers and duties of the registrar of the institute on such terms and conditions laid down by the statutes and he shall be the custodian of records, the common seal, the funds of the institute and such other property of the institute as the governing council shall commit to his chargeclause 21— this clause relates to the powers and duties of other authorities and officers of the institute to be determined by the statutesclause 22—this clause relates to the grants by the central government to the institute in each financial yearclause 23—this clause provides for the maintenance of a fund by the institute which shall be applied towards meeting the expenses of the instituteclause 24— this clause provides for the setting up of an endowment fund and any other fund for specified purposeclause 25— this clause provides for the maintenance of proper accounts and other relevant records, an annual statement of accounts including the balance-sheet in accordance with general directions issued by the central government in consultation with the comptroller and auditor-general of india and the same shall be audited by the comptroller and auditor- general of indiaclause 26— this clause provides for the constitution of pension, insurance and provident funds for the benefit of the employees including the director of the instituteclause 27— this clause provides for the appointment of the staff of the institute in accordance with the procedure laid down in the statutes by the governing councilclause 28— this clause provides for framing of the statutes with respect to conferment of honorary degrees; the formation of departments of teaching, establishment of workshops, laboratories and studios; fees for courses of study; institution of fellowships, scholarships, exhibitions, medals and prizes;  qualifications of teachers of the institute; the allowances to be paid to the chairperson and members of the governing council, etcclause 29— this clause provides for the procedure regarding framing of the first statutes of the institute and making of new or additional statutes as well as their amendment and repealclause 30— this clause provides for ordinances to be made relating to the admission of the students to the institute; reservation in admission to various courses or programmes of the institute for the scheduled castes, the scheduled tribes and other backward classes; courses of study to be laid down for all degrees, diplomas and certificates of the institute, etcclause 31— this clause provides for the procedure of making ordinances by the senateclause 32— this clause provides for an arbitral tribunal for settlement of disputes between the institute and its employeesclause 33— this clause provides that acts and proceedings  of the institute or governing council or senate or any other authority shall not be invalidated by any vacancy, etcclause 34— this clause relates to various sponsored schemes of the institute and its utilisationclause 35— this clause relates to power of institute to grant degrees, diplomas, certificates and other academic distinctionsclause 36— this clause provides for powers of central government to issue directions for effective administration of the proposed  legislationclause 37—this clause provides the applicability of the provisions of the right to information act, 2005 to the institute, as if it were a public authority defined in the said actclause 38— this clause confers power upon the central government to make rules in respect of the matters specified in the proposed legislationclause 39— this clause provides for the continuation of the existing governing council till the constitution of a new council under the provisions of the proposed legislationclause 40— this clause provides for the publication of every statute or ordinance in the official gazette and also for its laying before parliamentit further provides that 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 the proposed legislationclause 41—this clause relates to the power to remove difficulties financial memorandumclause 4 of the bill provides for establishment of the national institute of design(nid), ahmedabad as a body corporate2 sub-clause (y) of clause 6 of the bill provides for borrowing or raising monies, with or without security or on the security of a mortgage, charge, or hypothecation or pledge of any of the movable or immovable properties belonging to the institute or in any other manner3 sub-clause (4) of clause 14 of the bill empowers the governing council of the institute to enter into arrangements with the central government, state governments and other public or private organisations or individuals in india or outside india for securing and accepting endowments, grants, donations or gifts to the institute on mutually agreed terms and conditions which shall not be inconsistent or in conflict with the nature or objects of the institute and the provisions of the act4 clause 22 of the bill provides that 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 fit5 the following budget provisions have been made for the institute during the last five years ie 2007-2012:—(rs in lakhs)particulars2007-082008-092009-102010-112011-12grant-in-aid plan recurring9301070145014951510plan non-recurring865626135021752105non-plan24114179100100total189118102979377037156 clause 23 of the bill provides that the institute shall maintain a fund to credit all monies provided by the central government; all fees and other charges received by the institute, all monies received by the institute by way of grants, gifts, donations, benefactions, bequests or transfers and all monies received by the institute in any other manner or from any other source all monies 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, decide7 clause 24 of the bill provides for setting up of an endowment fund and any other fund for specified purpose and transfer money from its fund to the endowment fund or any other fund8 clause 25 of the bill provides for maintenance of proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as may be prescribed by the central government in consultation with the comptroller and auditor general of india the comptroller and auditor general of india shall be empowered to audit the accounts of the institute9 the bill does not involve any other expenditure of recurring or non-recurring nature from the consolidated fund of india memorandum regarding delegated legislationsub-clause (1) of clause 29 of the bill empowers the governing council, to frame, with the previous approval of the visitor, the first statutes of the institute sub-clause (2) of the said clause provides that the governing council may, from time to time, make new or additional statutes or amend or repeal such statutes sub-clause (3) of the said clause provides that every new statute or addition to the statutes or any amendment or repeal of a statute shall require the previous approval of the visitor who may assent thereto or withhold such assent or remit it to the governing council for reconsideration sub-clause (4) of the said clause provides that a new statute or a statute amending or repealing an existing statute shall have no validity unless it has been assented to by the visitor2 clause 30 of the bill enumerates the matters in respect of which ordinances of the institute may be made the ordinances are subject to the provisions of the proposed legislation and the statutes the matters in respect of which ordinances may be made, inter alia, include the admission of the students to the institute including institute campus;reservation in admission to various courses or programmes of the institute for the scheduled castes, the scheduled tribes and other backward classes; courses of study to be laid down for all degrees, diplomas and certificates  of the institute; 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; conditions for award of fellowships, scholarships, exhibitions, medals and prizes; conditions and mode of appointment and duties  of examining body, examiners and moderators; conduct of examinations; the maintenance of discipline among the students of the institute and any other matter which by this act or the statutes is to be or may be provided for by the ordinances3 clause 31 of the bill lays down the procedure of the senate to make ordinances 4 clause 38 of the bill empowers the central government to make rules in respect of matters relating to the appointment of the director and terms and conditions of his service under sub-section (1) of section 18; the form and manner in which the books of account of the institute shall be maintained under sub-section (1) of section 25 and any other matter which is required to be, or as may be, prescribed5 the matters in respect of which the notification, the statutes, or the ordinances may be made are matters of procedure and administrative detail and it is not practicable to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character———— a billto declare the institution known as the national institute of design, ahmedabad, to be an institution of national importance for the promotion of quality and excellence in education, research and training in all disciplines relating to design and for matters connected therewith or incidental thereto————