THE PUNJAB MILK
BOARDS ORDINANCE, 1963
(W.P. Ordinance XXXVIII of 1963)
1. Short title, extent
ESTABLISHMENT OF MILK BOARD
3. Establishment and
incorporation of the Board.
4. Constitution of the
5. Appointment of
6. Appointment of
7. Qualification and
removal of Chairman.
8. Appointment of
9. Fees and T.A. for
conditions of service and disciplinary powers.
11. Meetings of the
12. Forwarding of
agenda, etc., to Government.
13. Delegation of
FUNCTIONS AND POWERS
OF THE BOARD
14. Functions of the
Board and scheme.
15. Power to make Order.
PLANS, PROJECTS AND SCHEMES
16. Preparation of
17. Development schemes
20. Milk Board Fund.
21. Power of the Board
to borrow money.
22. Custody and
investment of funds.
23. The budget.
RULES AND REGULATIONS
24. Power to make rules.
25. Power to make
26. Chairman, etc.,
deemed public servants.
27. Contribution by the
Board towards leave, allowances and pension of Government servants.
29. Authority for
30. Recovery of dues.
31. The powers of the
Chairman as to institution, etc., of legal proceedings and obtaining legal
32. Indemnity to the
33. Notice of suit
against the Board.
34. Mode of proof of the
35. Restriction in the
summoning of the Board servants to produce documents.
36. Validation of acts
37. General powers of
the Board to pay compensation.
AUDIT AND ACCOUNTS
38. Accounts and Audit.
39. Annual report.
40. Dissolution of the
MILK BOARDS ORDINANCE, 1963
XXXVIII of 1963)
[20 November 1963]
An Ordinance to regulate the
production and marketing of milk and milk products in
Preamble.— WHEREAS it is expedient to
regulate the production and marketing of milk and milk products in certain
areas of [the
AND WHEREAS the Provincial Assembly of
West Pakistan is not in session and the Governor of West Pakistan is
satisfied that circumstances exist which render immediate legislation
THEREFORE, in pursuance of the powers conferred on him under clause (1) of
Article 79 of the Constitution, the Governor of West Pakistan is pleased to
make and promulgate the following Ordinance:-
1. Short title, extent and
commencement.— (1) This Ordinance may be called
Milk Boards Ordinance, 1963.
(2) It extends to the whole of
the province of [the
(3) This section shall come into force
at once and the remaining provisions shall come into force in such area or
areas and on such date or dates as Government may, by notification in the
official Gazette, specify in this behalf.
2. Definitions.— In this Ordinance,
unless the context otherwise requires, the following expressions shall have
the meanings hereby respectively assigned to them, that is to say—
(a) “Board” means a Milk Board established under this
(b) “Chairman” means the
Chairman of the Board;
(c) “depot” means premises
where milk or milk products are processed, manufactured or sold by the
(d) “Government” means the
Government of the Punjab];
(e) “local area” means the
area to which the provisions of this Ordinance have been applied;
(f) “member” means a member
of the Board;
(g) “milch animals” mean
cows, buffaloes, sheep and goats;
(h) “milk” means normal
mammary secretion obtained from one or more milkings of milch animals
without any addition thereto or extraction therefrom and includes milk
treated to conform to such standard as may be prescribed;
(i) “milk products” means
the products exclusively derived from milk;
(j) “owner” means owner of
milch animals producing milk used exclusively for his own household
(k) “prescribed” means
prescribed by rules made under this Ordinance;
(l) “producer” means a
producer of milk, other than the owner, who sells all or a part of milk
produced by him;
(m) “Project Director” means
the Project Director appointed under section 6;
(n) “Scheme” means a scheme
prepared under this Ordinance.
ESTABLISHMENT OF MILK BOARD
3. Establishment and incorporation of the
Board.— (1) As soon as may be after the commencement of this Ordinance
in any local area, there shall be established a milk Board to carry out the
purposes of this Ordinance in that area.
(2) The Board shall be a body corporate
having perpetual succession and a common seal, with power, subject to the
provisions of this Ordinance, to acquire, hold and dispose of property, both
movable and immovable, and shall by the said name sue and be sued.
4. Constitution of the Board.— (1)
The Board shall consist of such members as may be appointed by Government.
(2) A member shall, unless sooner
removed by Government, hold office for a term of three years and may be
re-appointed for such period or periods as Government may, from time to
(3) A casual vacancy shall be filled by
Government and a member appointed to such vacancy shall hold office for the
unexpired term of his predecessor.
(4) The Board in discharging its
functions shall be guided by such directions as Government may, from time to
(5) If the Board fails to obey
any direction under sub-section (4), Government may remove the members and
reconstitute the Board [:]
[Provided that no order
of removal shall be passed without giving the Board an opportunity of being
heard, and showing cause against the removal].
5. Appointment of Chairman.— (1)
Government shall appoint one of the members to be the Chairman.
(2) The Chairman shall be the Chief
Executive of the Board.
6. Appointment of Project Director.—
(1) For each local area there shall be appointed by Government a Project
Director on such terms and conditions as may be determined by Government.
(2) The Project Director shall be
responsible for the execution of the schemes and the implementation of the
decisions of the Board.
(3) The Project Director shall be the
Secretary of the Board.
7. Qualification and removal of
Chairman.— (1) No person shall be or shall continue to be a member who—
(a) is or has at any time been
convicted of an offence involving moral turpitude; or
(b) is or has at any time been
adjudicated insolvent; or
(c) is or has at any time been
disqualified for employment in, or dismissed from the service of the State;
(d) is a minor; or
(e) is found to be a lunatic or
of unsound mind; or
(f) has direct financial
interest in the matters falling within the purview of the Board; or
(g) has a bad reputation.
may, after giving the Chairman or a member an opportunity of being heard and
showing cause against the proposed action, by order in writing, remove the
Chairman or the member, if he—]
(a) refuses or fails to
discharge or becomes, in the opinion of Government, incapable of discharging
his responsibilities under this Ordinance; or
(b) has, in the opinion of
Government, abused his position as Chairman or member; or
(c) has knowingly acquired or continued to hold without the
permission in writing of Government directly or indirectly, or through a
partner, any share or interest in any contract or employment with or by or
on behalf of the Board or in any land or property which, in his knowledge,
is likely to benefit or has benefitted as a result of the operations of the
(d) has absented himself
from three consecutive meetings of the Board without the leave of Government
in the case of Chairman, or of the Chairman in the case of a member.
Appointment of officers, etc.—
(1) The Board may appoint such officers, advisors and servants as it
considers necessary for the efficient performance of its functions on such
terms and conditions as it may deem fit in accordance with the scheme
approved by Government.
(2) The Chairman may, in cases of
urgency, appoint such officers, advisors or servants and on such terms and
conditions as he thinks fit:
Provided that every such appointment
shall be reported to the Board without unreasonable delay and shall not
continue beyond six months unless approved by the Board.
9. Fees and T.A. for non-official
Members.— A member, not being a Government servant, shall be paid such
fees and travelling allowance for attending meetings of the Board as may be
Recruitment, conditions of service and disciplinary powers.—
(1) Procedure for the appointment of officers and servants of the Board and
the terms and conditions of their service shall be such as may be provided
(2) Subject to rules and regulations,
the Board shall be competent to take disciplinary action against its
officers and servants.
Meetings of the Board.— (1)
The meetings of the Board shall be held at such times and at such places and
as often as may be necessary, so however that the Board meets at least once
in three months.
(2) The quorum at a meeting of the
Board shall be one half of the total number of members, a fraction counting
(3) The meetings of the Board shall be
presided over by the Chairman, and in the absence of the Chairman by the
member authorized by him in writing in that behalf, or in default of such
authorization, by the person elected for the purpose, by the members present
from amongst themselves.
(4) All questions which come up before
the Board at a meeting shall be decided by a majority of votes. Each member
including the Chairman, shall have one vote, but in the event of equality of
votes, the Chairman shall have a second or casting vote.
(5) The minutes of every meeting of the
Board, stating among other things the names of the members present, shall be
drawn up and recorded in a book to be kept for the purpose, and shall be
signed by the person presiding at the meeting and such book shall be open to
inspection by the members.
12. Forwarding of agenda, etc., to
Government.— (1) The Chairman shall forward to Government a copy each of
the agenda, working paper and the minutes of every meeting of the Board
within fifteen days of the date on which the meeting is held.
(2) Government may require the Board to
(a) any returns,
statements, estimates, statistics or other information regarding any matter
under the control of the Board; or
(b) a report on any such
and the Board shall comply with any such
requisition without undue delay.
13. Delegation of powers.— (1) The
Board may delegate to the Chairman or any member, Project Director or
officer, any of its powers under this Ordinance or the rules or regulations.
(2) The Chairman may likewise delegate
to any member, Project Director or officer any of his powers, under this
ordinance or the rules or regulations, not being a power delegated to him by
the Board under sub-section (1).
FUNCTIONS AND POWERS OF THE BOARD
14. Functions of the Board and scheme.—
(1) The functions of the Board shall be to ensure that an adequate supply of
milk and milk products of good quality is available to the consumers of milk
and milk products in the local area and for that purpose to prepare and
execute schemes for regulating production, marketing and distribution of
milk and milk products.
(2) Without prejudice to the generality
of the foregoing provisions, any such scheme may provide for all or any of
the following, namely:-
(a) purchase and
collection of milk from the producers;
(b) establishment of centres for the collection and testing of milk;
(c) haulage of collected
milk to the factory and its processing;
distribution and sale of milk and milk products and establishment of depots
(e) purchase, sale and
distribution of concentrates and fodder;
(f) organizing the
producers of milk on co-operative basis;
(g) sale or letting for
hire to the producers of milk and milk products, any plant, machinery,
vehicle or other equipment necessary for the production of milk and milk
(h) establishment of
producers’ colonies where the producers of milk can be removed and provided
housing and other facilities for themselves and their livestock;
(i) acquisition and
maintenance of lands, buildings, plants, machinery, vehicles or other
equipment required for any scheme or for any other purpose of this
(j) stimulating dairy
development or milk consumption.
(3) A scheme prepared by the Board
shall be submitted to Government for approval and shall not be implemented
or executed wholly or partly before such approval has been obtained.
(4) Government may sanction or may
refuse to sanction, or may return for reconsideration any scheme submitted
to it or may call for such further details or information about the scheme
or may direct such further examination of the scheme as it may consider
(5) when a scheme has been approved by
Government, the Board shall, before proceeding to implement any part
thereof, publish for general information the scheme or its salient features
in such manner as may be prescribed.
15. Power to make Order.— (1) The
Board may, with the previous approval of Government, by Order published in
the official Gazette and in such local newspapers as the Chairman may think
(a) fix the prices above
which various grades or qualities of milk or milk products shall not be
(b) prohibit production,
marketing or sale of milk and milk products, which are below such standard
of quality as may be specified;
(c) fix the prices above
which various grades or qualities of raw milk shall not be purchased;
(d) require the registration
of cattle with such authority, in such manner and on payment of such fees,
as may be specefied;
(e) prohibit the keeping of
cattle except under such conditions as may be specified;
(f) require the registration
of the producers of milk with such authority, in such manner and on payment
of such fees, as may be specified;
(g) prohibit distribution or
sale, or collection for distribution or sale of milk and milk products by
any person except under and in accordance with a licence issued in this
behalf by such authority, in such manner and on payment of such fees, as may
(h) direct that all milk
brought for sale from outside shall be sold only to the Board in such manner
or on payment of such fees and at such places as may be specified;
(i) provide for—
(i) the prescription
of methods to be followed in the preparation, treatment, carriage, deposit,
storage and sale of milk and milk products;
(ii) the inspection of premises, production
plants, stores, and anything used for any purpose specified in sub-clause (i);
(iii) keeping of books
and records by various categories of persons engaged in any functions under
(iv) the labelling of
milk and milk products;
(v) the prescription
of containers to be used for milk and milk products.
PLANS, PROJECTS AND SCHEMES
16. Preparation of plans.— Subject
to the provisions of this Ordinance and the rules and regulations, the Board
shall, with the previous approval in writing of Government, prepare outlines
of a plan for the execution of its objectives.
17. Development schemes and projects.—
The Board shall prepare schemes and projects on pro forma prescribed
by Government for development schemes and submit them for the approval of
Government in such manner as may be prescribed.
Subsidiary organisation.— The
Board may set up special subsidiary organizations with the prior approval of
Government as may be necessary for execution of schemes or projects or
delegate or entrust to any such organization such of its powers and
functions as it thinks fit.
19. Commercial transactions.— The
Board may enter into commercial transactions with any person or
20. Milk Board Fund.— (1) There
shall be a fund to be known as the “Milk Board Fund” vested in the Board
which shall be utilized by the Board to meet charges in connection with its
functions under this Ordinance, including the payment of salaries and other
remunerations to the Project Director, officers, advisers and servants of
(2) The Milk Board Fund shall consist
(a) grants made by
(b) loans obtained from
(c) grants made by local
bodies as required by Government;
(d) loans obtained by the
Board with the special or general sanction of Government;
(e) foreign aid and
loans obtained with the previous sanction of the
(f) all fees, including
the licence fees, received by the Board; and
(g) all other sums
received by the Board.
21. Power of the Board to borrow money.—
The Board shall be deemed to be a local authority under the Local
Authorities Loans Act, 1914 (IX of 1914), for the purpose of borrowing money
under that Act; and the making and execution of any scheme or project under
this Ordinance shall be deemed to be a work which such authority is legally
authorised to carry out; provided that no foreign loan shall be obtained
without the previous sanction of Provincial Government and the
Custody and investment of funds.—
(1) The Board may keep money in any treasury, sub-treasury or a bank
approved by Government.
Nothing in sub-section (1) shall be deemed to preclude the Board from
investing any such moneys as are not required for immediate expenditure in
any of the securities described in section 20 of the Trusts Act, 1882 (Act
II of 1882), or placing them in fixed deposit with a bank approved by
23. The budget.— The Board shall
prepare its annual budget estimates and submit the same to Government by the
prescribed date and Government may modify the said estimates to such extent
as it may consider necessary.
RULES AND REGULATIONS
24. Power to make rules.— (1)
Government may, by notification in the official Gazette, make rules for the
purpose of giving effect to the provisions of this Ordinance.
(2) In particular, and without
prejudice to the generality of the foregoing power, such rules may provide
(a) the carrying out of
continuous evaluation by Government of the work of the Board;
(b) the re-appropriation
of funds within the sanctioned budget;
(c) the maintenance of
liaison between the Board and other bodies and authorities concerned with
administration and development, including the local councils constituted
under the Basic Democracies Order, 1959 (P.O. 18 of 1959);
(d) the powers, duties and functions of the Project Director; and
(e) any other matter
required by the provisions of this Ordinance to be prescribed.
Power to make regulations.—
(1) Subject to the provisions of this Ordinance and the rules, the Board
may, by notification in the official Gazette, and with the previous approval
in writing of Government, make regulations for carrying out the purposes of
(2) In particular and without prejudice
to the generality of the foregoing power, such regulations may provide for—
(a) the appointment of
committees to consider particular matter or matters;
(b) the investment of
money by the Board;
(c) the meetings of the
(d) methods of ensuring
continuous evaluation by the Board of its schemes and projects;
(e) the determination of
the terms and conditions of service of the officers and servants of the
(f) the mode of operation
and expenditure of the funds of the Board; and
(g) any other matters
required by the provisions of this Ordinance to be provided by regulations.
26. Chairman, etc., deemed public
servants.— The Chairman, every member, the Project Director and every
officer, adviser and servant of the Board shall be deemed to be a public
servant within the meaning of section 21 of the Pakistan Penal Code (XLV of
27. Contribution by the Board
towards leave, allowances and pension of Government servants.—
The Board shall be liable to pay such contributions for the leave,
allowances and pension of any person in the services of Government or the
Government] and employed as Project Director, adviser, officer or servant of
the Board as may be required by the conditions of his service under such
Government, to be paid to him or on his behalf.
28. Penalties.— Whoever contravenes
or fails to comply with any order made under section 15 shall be punished
with imprisonment for a term not exceeding six months or with fine not
exceeding one thousand rupees or with both.
29. Authority for prosecution.— No
Court shall take cognizance of any offence punishable under this Ordinance,
except on the complaint of the Chairman or some person authorised by the
Board or by the Chairman by general or special order in this behalf.
30. Recovery of dues.— The Chairman
or any person generally or specially authorized by him may apply to the
competent authority for the recovery of any sum due under this Ordinance or
by agreement made under this Ordinance and the said authority shall
thereupon proceed to recover the sum as if it were an arrear of land
31. The powers of the Chairman as to
institution, etc., of legal proceedings and obtaining legal advice.—
The Chairman may, subject to the control of the Board—
(i) institute, defend or
withdraw from legal proceedings under this Ordinance;
(ii) compound any offence
against this Ordinance;
(iii) admit, compromise or
withdraw any claim made under this Ordinance; and
(iv) obtain such legal
advice and assistance as he may, from time to time, deem it necessary or
expedient to obtain or as he may be desired by the Board to obtain, for any
of the purposes referred to in the foregoing clauses of this section, or for
securing the lawful exercise or discharge of any power or duty vested in or
imposed upon the Board or any officer or servant of the Board.
32. Indemnity to the Board, etc.— No
suit shall be maintainable against the Board, the Chairman, Project Director
or any officer, adviser or servant of the Board, or any person acting under
the direction of the Board, or of the Chairman, Project Director or any
officer or servant of the Board in respect of anything done lawfully and in
good faith and with due care and attention under this Ordinance.
33. Notice of suit against the Board.—
(1) No suit shall be instituted against the Board, the Chairman, Project
Director, any person associated with the Board, or any officer, adviser or
servant of the Board, or any person acting under the direction of the Board
or for the Chairman, Project Director or any officer or servant of the Board
in respect of an act purporting to be done under this Ordinance, until the
expiration of two months next after notice in writing has been, in the case
of the Board left at its office, and in any other case delivered to or left
at the office or place of abode of person to be sued, explicitly stating the
cause of action, the nature of the relief sought, the amount of compensation
claimed, and the name and place of abode of the intending plaintiff; and in
case the suit is filed, the plaint shall contain a statement that such
notice has been so delivered or left:
[Provided that where
any such suit is instituted without delivering or leaving such notice as
aforesaid or before the expiration of the said period of two months or where
the plaint does not contain a statement that such notice has been so
delivered or left, the plaintiff shall not be entitled to any costs].
(2) If the Board or other person
referred to in sub-section (1) shall, before the action is commenced, have
tendered, in the opinion of the Court, sufficient amends to the plaintiff,
the plaintiff shall not recover any sum in excess of the amount so tendered
and shall also pay all costs incurred by the defendant after such tender.
(3) No action such as is described in
sub-section (1), shall, unless it is an action for the recovery of immovable
property or for a declaration of the title thereto be commenced otherwise
than within six months next after the accrual of the cause of action:
Provided that nothing in sub-section (1)
shall be construed to apply to a suit wherein the only relief claimed is an
injunction of which the object would be defeated by the giving of the notice
or the postponement of the commencement of the suit or proceedings.
34. Mode of proof of the Board’s
records.— A copy of any receipt, application, plan, notice, order, entry
in a register or other documents in the possession of the Board shall, if
duly certified by the legal keeper thereof, or other person authorized by
the Board in this behalf, be received as prima facie evidence of the
existence of the entry or document and shall be admitted as evidence of the
matter and transaction therein recorded in every case where and to the same
extent, as the original entry or document would, if produced, have been
admissible to prove such matters.
Restriction in the summoning of the Board servants to produce documents.—
Neither the Chairman nor the Project Director, any adviser, officer, or
servant of the Board shall in any legal proceedings to which the Board is
not a party be required to produce any register or documents the contents of
which can be proved under the preceding section by a certified copy, or to
appear as a witness to prove the matters and transactions, recorded therein
unless by order of the Court made for special cause.
36. Validation of acts and proceedings.—
(1) No act done or proceedings taken under this Ordinance shall be
questioned on the ground merely of—
(a) the existence of any
vacancy in, or any defect in the constitution of the Board; or
(b) any person having ceased
to be a member has continued to act as such; or
(c) any omission, defect or
irregularity not affecting the merits of the case.
(2) Every meeting of the Board, the
minutes of the proceedings of which have been duly signed as prescribed in
clause (5) of section 11 shall be taken to have been duly convened and to be
free from all defects and irregularities.
General powers of the Board to pay compensation.— In any case not otherwise expressly provided for in this Ordinance, the
Board may with the prior approval of Government pay reasonable compensation
to any person who sustains damage by reason of the exercise of any of the
powers vested under this Ordinance in the Board or the Chairman, Project
Director or any officer or servant of the Board.
AUDIT AND ACCOUNTS
38. Accounts and Audit.— (1) The
Board shall maintain proper accounts and other relevant records and prepare
annual statement of accounts including the profit and loss account and
balance-sheet in accordance with such general directions as may be issued,
and in such form as may be specified by Government in consultation with the
Accountant-General, West Pakistan or the Comptroller and Auditor-General,
hereinafter in this section referred to as the Auditor-General.
The accounts of the Board shall be audited by an auditor who shall be
chartered accountant within the meaning of the Chartered Accountants
Ordinance, 1961 (X of 1961), and appointed for the purpose by the Board with
the previous approval in writing of Government.
(3) Notwithstanding, the audit provided
for in sub-section (2), the Auditor-General shall audit or cause to be
audited the accounts of the Board.
(4) The Board shall produce all
accounts books and connected documents and furnish such explanation and
information as the Auditor-General may require at the time of audit.
(5) A statement of its accounts audited
by the chartered accountant referred to in sub-section (2) shall be
forwarded to Government by the Board as soon as possible after the end of
every financial year.
39. Annual report.— The Board shall,
as soon as possible after the end of every financial year, submit an annual
report to Government on the conduct of its affairs for that year.
40. Dissolution of the Board.— (1)
Government may, by notification in the official Gazette declare that a Board
shall be dissolved from such date as may be specified in the notification
and thereupon the Board shall stand dissolved on that date.
(2) From the said date—
(a) all properties, funds
and dues which immediately before the said date were vested in or were
realizable by the Board shall vest in and be realizable by Government;
(b) all liabilities which
immediately before the said date were enforceable against the Board shall be
assumed by, and be enforceable against Government; and
(c) for the purpose of
completing the execution of any scheme or project sanctioned under this
Ordinance which has not been fully executed by the Board and of realizing
properties, funds and dues referred to in clause (a) the functions of
the Board shall be discharged by Government.