The Finance Commission (Miscellaneous Provisions) Act, 1951
# 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.

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# 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][(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 [1][by notification in the official Gazette] in this
behalf, determine.

1. Section 7 renumbered as sub-section (1) thereof by Act 4 of 1986, s. 2 and the Schedule (w.e.f. 15-5-1986).

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1[(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 [2][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.

1. Ins. by Act 4 of 1986, s. 2 and the Schedule (w.e.f. 15-5-1986).
2. Added by Act 13 of 1955, s. 2.

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