Section 40: Procedure for payment of salary in the case of certain institutions receiving maintenance grant from the State Government

(1) The management of every institution receiving maintenance grant from the State Government shall for the purposes of disbursement of salaries to its teachers and employees open in a scheduled bank or a co-operative bank a separate account to be operated jointly by a representative of the management and by the District Assistant Director of Sanskrit Education or such other officer as may be authorized by Assistant Director of Sanskrit Education in that behalf, Provided that after the account is opened the District Assistant Director of Sanskrit Education may, if he is, subject to any rules made under this Act, satisfied that it is expedient in the public interest to do so, instruct the bank that the account shall be operated by the representative of the management alone, and may time revoke such instruction, Provided further that in the case referred to in the proviso to sub-section (2), or where a difficulty arises in the disbursement of salaries due to any default of the management the District Assistant Director of Sanskrit Education may instruct the bank that the account shall be operated only by himself or by such other officer as may be authorized by him in that behalf and may at any time revoke such instruction. (2) The management shall deposit in the said account by such date as may be specified by general or special orders by the District Assistant Director of Sanskrit Education, eighty percent or where the State Government or an officer authorized by the State Government having regard to the money required to be disbursed, directs a higher percentage, then such higher percentage as it or he may direct of the amount receive from students, as fees which in accordance with the general or special orders of the State Government in that behalf and for so long as such Seders are not made in, accordance with the directions of the District Assistant Director of Sanskrit Education form part of the maintenance fund. (3) The entire amount of the maintenance grant and the amount of eighty percent or such higher percentage as the State Government or an officer authorized by the State Government may by general or special order in that behalf determine, of the grants, for reimbursement of free ships and other similar concession shall also be paid by the State Government into the said account. (4) No money credited to the said account shall be applied for any purpose except the following, namely— (a) payment of the said salaries falling due for any period from the date of the commencement of this Act; (b) Credit of the institutions contribution, if any, to the provident fund accounts of the teachers and employees. (c) such other expenditure for the purposes of the institution receiving maintenance grant from the State Government as may be directed by the State Government or an officer authorized by it in that behalf and such portion of the balance in the account at the end of the month of July each year as exceeds the aggregate of one month’s salary of the teachers and employees of the institution receiving maintenance grant from the State Government after meeting the liability for payment of their salaries for the period for which fees have been realized from the students shall be made over to the management for expenditure on the institution receiving maintenance grant from the State Government. (5) The salary of a teacher or employee shall be paid by transfer of the amount from the said account to his account, if any, in the same bank, or if he has no account in that bank, then by cheque. (6) In respect of a place where there is no scheduled bank or a co-operative bank the provision of this section shall apply with such modifications as the State Government may by notification in the Gazette specify and the references in this section to bank shall in that case be construed as references to a post office savings bank.