(1) if any Board premises are let out to a person who is employed by the Government or a local authority or in a factory or industrial establishment, he may execute an agreement in such form as may be prescribed in favour of the Board Providing that the Government or the local authority or other employer as the case may be, by whom he is employed , shall be competent to deduct from the salary or wages payable to him such amount as may be specified in the agreement and to pay the amount so deducted to the Board in satisfaction of the rent due to him in respect of such premises.
(2) On the execution of such agreement, the Government or Local authority or other employer, as the case may be, shall, if so required by the Board in writing, make the deduction from the salary or wages of the employee in accordance with the agreement and pay the amount so deducted to the Board, nothwithstanding anything contained in the payment of Wages Act, 1936 (Act 4 of 1936).
(3) The deduction of any amount under sub-section (2) shall operate as a complete discharge of the liability of the employee to the Board in respect of the amount so deducted.
Explanation.- The terms "factory" and "industrial establishment" shall have the meaning respectively assigned to them by the Payment of Wages Act, 1936 ( Act 4 of 1936).