IX –Incidence of Grants of Land and Alienations.


State Governments receive compensation from the revenues of the Central Governments for all grants of land and assignments or remissions of land revenue sanctioned on or after the 1st April, 1912, in favour of officials and non-officials in recognition of exceptional services rendered by them to the Central Government.


1. The value of compensation for grants of land, etc., by the Defence Department should be debited against the Defence Service Estimates.


2. All special pensions and Jagirs in the forms of assignments of land revenues sanctioned for Military Officers on a date previous to the 1st April, 1921, under the Government of India Special War Rewards Scheme should also be debited to the Defence Services Estimates. 


X –Incidence of the cost of Police Functions on Railways including the cost of protecting Railway Bridges.


1. Police functions on Railways are divided into three categories :-


(a) Crime – for which Civil Governments are entirely responsible and the expenses of which these Governments have to pay;

            (b) Order – for which Civil Government are responsible but the expenses of which Railways have to pay; and

            (c) Watch and Ward-for which Railways bear both responsibilities and cost.


Special requisitions on the policy by Railways for (c) must be paid for by the later; special requisitions for (a) beyond what a Civil Government considers necessary should also be debited to Railways. But Railways cannot be called upon to pay for special measures under (a) which a Civil Government considers necessary.


2.         The following rules regulate the incidence of the cost of protecting railway bridges :-


(1)                           Railway Bridges, in common with Railway goods and premises, will ordinarily be protected by watchmen in the employee of the Railway concerned.


(2)                           In the event of the replacement of these watchmen by military or police guards :-


(a)                            When the services of the military or police guards are placed at the disposal of the Railway at the request of the Railway Administration, the cost of the guards will fall upon the Railway.

(b)                           If the substitution is made on general grounds of Government policy and the service is taken over pay the Police, Defence Services or other Public Services Department as part of their regular duties the charges will fall upon the Government and will be debited to Police Defence Service or the Public Department concerned, as the case may be.


XI –Incidence of cost (1) Forest Surveys carried out by the Survey of India and (2) forest map prepared by that Department.


The rules governing the incidence of the cost of (1) Forest Surveys carried out by the Survey of India and (2) Forest map prepared by that department are given in Chapter IX of the Survey of the India Handbook of Topography.


XII –Incidence of the charges relating to Maintenance and Demarcation of and dispute over Boundaries.


The incidence of these charges between a foreign Country and India is regulated by the following principles :-


            1. (a) Maintenance –Half the maintenance charges will be borne by the State concerned; or for Union Territory by the Center, the other half being recovered, as far as practicable, from the Foreign Country, failing which, the Foreign country’s share will be borne by the central Government.


                (b) Demarcation and Disputes Charges relating to demarcation of boundaries and boundary disputes will be borne by the Central Government under Entry 10 of the Union List, subject to such recovery as may be made from the Foreign Country.


Note. 1. –The arrangement in (a) above in its application to Nepal will be subject to special arrangements worked out in consultation with the Nepal Government.


Note 2. –The share of Bhutan Government for maintenance and demarcation of and dispute over, boundaries will be borne by Central Government for the present. 


2. Where streams or other water courses from the boundary and where the ordinary principle of medium line applies the Government concerned (i.e. Foreign Country, or India ) will bear the cost of maintenance of the boundary line on its side, where a separate set of survey marks is maintained by each of the two Governments, on its side, the cost of maintenance of the Survey marks should be borne by the Government concerned.




XIII –Incidence of Leave Salary and Pension Contributions recovered in respect of Government employees on Foreign Service.


1.         Contributions towards leave-salary and pension recovered on behalf of a Government employee in foreign service are creditable to the Government (Central or State) under which he was permanently employed at the time of his transfer to foreign service.


2.         Contribution towards the leave and pension of Military Officers and other in permanent Military employee, in temporary Civil employee, should be adjusted in the Defence Services accounts while the contributions in respect of such officers in permanent Civil employee should be credited to Civil Estimates.  When a Government employee on whose behalf the contributions are received belongs to the Posts and Telegraphs Department or Railways, the credits should be passed on the Department concerned.


XIV. Rents to be charged for residence of one Government occupied by an employee of another Government.


The Punjab Government and the Governments of Madras, Utter Pradesh, Assam, Madhya Pradesh, Andhra Pradesh and Central Government have mutually agreed that when an employee of one of these Governments occupies by official arrangement a residence, provided by any of these governments the latter Government will claims no more than the rent which would be recoverable from  the Government employee if he were serving under its administrative control, In other words neither Government is to be called upon to make good to the other the difference between the standard rent and the rent actually recovered.


The convention with the Governments of Bombay, West Bengal, Bihar and Orissa is that the Government providing the residence will claim from the Government employee a rent which would be recoverable from him if he were serving under its administrative control, and the difference, if any between the rent recovered from him and the standard rent fixed for the residence under the rules of the providing Government is to be called upon to make good to the other the difference between the standard rent actually recovered.


The convention with the Governments of Bombay, West Bengal , Bihar and Orissa is that the Government providing the residence will claim from the Government employee a rent which would be recoverable from him if he were serving under its administrative control, and difference, if any, between the rent recovered from him and the standard rent fixed for the residence under the rules of the providing Government will be paid by the Government under whose administrative control he is serving.


            When Government employees of the Punjab Government occupy residential accommodation provided by Railway Administrations or Railway Officer occupy residential accommodation provided by the Punjab Government, recovery of rent will be limited to 6 per cent on the capital cost excluding the cost of land, subject to 10 per cent of their pay, provided that in the case of buildings provided by Railway Administrations on their own premises for Railway Police, Railway Administrations will, with effect from 1st April, 1937, debt the Punjab Government with the full standard rent (i.e. rent calculated on actual capital cost) for all Railway buildings occupied by the “Order” police staff ( including supervising staff ), the Punjab Government debiting the Railways :-


            (1) With the difference between the standard rent and actual rent recovered in the case of staff other than supervising; and


            (2) ¼th of this difference in the case of supervising staff.




XV. Incidence of charge in respect of Government employees whose services are lent by one Government to another for short periods not exceeding two weeks, without being formally transferred from then lending to borrowing Government.


            The Punjab Government and the various State Governments and Central Government have mutually agreed to the following reciprocal arrangements in respect of short-term deputations not exceeding two weeks during which the Government employee concerned will not be transferred formally from service under the lending Government to service under the borrowing Government.


2.     The cases in which duties of a casual nature are performed by offer of one Government

For another Government, the officer remaining in the employment of his own Government, can be divided into the following two categories: -


(i)                                                                        Where the officer is required to devote his whole time attention to such duties,

(ii)                                                                      Where he can perform them in addition to his own duties.


3.         In cases falling in category (i) referred to above, the borrowing Government shall pay traveling allowance and such honorarium as the two Governments concerned may mutually agree for payment to the officer concerned.  In addition to this, the borrowing Government should be required to pay the lending Government in respect of the officer’s pay and allowance as follows: -


            (a) Where the period of deputation does not exceed 7 days, the lending Government should recover at its discretion from the borrowing Government, the pay of the lent officer.


Where the period of deputation exceeds 7 days, the recovery to be made from the borrowing Government, should, besides the traveling allowance and a suitable honorarium, which the two Governments may mutually agree for payment to the officer concerned, also cover the pay, leave and pension contributions of the officer.  Instead of making meticulous calculations in each individual equal to 1-1/4th times the pay of the officer that will suffice to cover the pay, leave and pension contributions of the officer concerned.


4.           In cases falling in category (ii) referred to, in paragraph 2 above the lending Government should not claim anything on account of pay, leave and pension of the officer, but if the additional duties to be performed are sufficiently onerous, it may ask the borrowing Government to pay a suitable honorarium to the officer concerned.


5.         Where the period of deputation exceeds 14 days the borrowing Government should be regarded as formally employing the officer and should be responsible for pay, leave and passage contributions, etc.  under the rules in the foregoing sections of this Appendix.


6.         In no case will the lending Government appropriate to itself any portions of the honorarium paid to its officer by borrowing Government.


Note. 1-The above mentioned instructions will also apply mutatis mutardis in the cases of officers of the Punjab Government whose services are lent to Union Territory for periods not exceeding two weeks.  With reference to paragraph 3(a) above, it is laid down that where the periods of deputation does not exceed 7 days and the Punjab Government are vitally interested in lending the services of their to a Union Territory no pay should be charged from that State.  In cases, however, where the Punjab Government are not vitally interested in lending the services of their officer Government should generally charge pay in addition to the traveling allowance and a suitable honorarium for the officer himself.





(Referred to P.F.R. 2.44 (a) & 2.45)


(1)        The terms of a contract once entered into should not be materially varied without the previous consent of the competent financial authority.  No payment to contractors by way of compensation, or otherwise outside the strict terms of the contract or in excess of the contract rates may be authorised without the previous approval of the Department of Finance.


(5)        No contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered into without the previous consent of the competent financial authority.


(6)        Whenever practicable and advantageous, contracts should be placed only after tenders have been openly invited and, in cases where the lowest tender is not accepted, reasons should be recorded.  In selecting the tender to be accepted, the financial status of the individuals and firms tendering must be taken into consideration in addition to all other relevant factors.


(7)        Even in cases where a formal written contract is not made, no order for supplies etc., should be placed without at least a written agreement to the price.


(8)        Provision must be made in contracts for safeguarding Government property entrusted to a contactor.


(9)        The Accountant-General has power to examine contracts and to bring before the Public Accounts Committee any cases where competitive tenders have not been sought, or where high tenders, have been accepted, or where other irregularities in procedure have come to light.                                                    


(10)      The instructions given in the Annexure to this part of the Appendix should be carefully observed in drawing up instruments relating to immovable property. 

            These principles will apply to all contracts involving expenditure from State revenues, and should be carefully observed by all Government employees who have to enter into such contracts on behalf of Government.





Instructions to Government employees concerned with the drawing up Instruments relating to Immovable Property


1.        Many of the old printed forms still in use refer to “The Secretary of State for India in Council (hereinafter referred to as the vendor, lessor, etc. )”  wherever such words occur they should be altered to “the Governor of the Punjab (hereinafter called the Governor)”, and consequential alterations should be made throughout the draft.


2.         (i) Most standard forms refer to the other party as a single individual with the usual particulars of parentage, caste and residence.  When the Instrument is in favour of a body of persons, the heading will have to be altered, and particular care is needed to ensure that this is done correctly.


            (ii) In the first place, the exact nature of the body must be ascertained, and the description must be entered in the draft, e.g. “ a firm carrying on business in partnership through A.B. one the partners or a company, association or society incorporated or registered under the provisions of section –of Art-“. When the party is a company the address of the registered office should be given.


3.         Government employees executing deeds on behalf of Government should distinguish between the power merely to sign such deeds and the power to grant leases, etc., without reference to Government.  If the power to make a grant has not been delegated, reference should be given to orders of Government itself.  If the power has been delegated, a reference should be made to order of delegation.


4.         (i) If a lease is to be executed on behalf of a corporation, there must be either resolution of the government body, or same other form of authorization, and there should also be an inspection of the articles of association or the bye-laws to show that the execution of the document by the person signing it is in order.


            (ii) When the deed is in favour of an incorporated body the agreement is with the body itself, and should be so expressed.  A common mistake is to describe the agreement as being made with the manager or managing body.  Such expression should be avoided.


5.         When the deed is in favor of a firm, the agreement is with the actual partners trading under the name of the firm, and not in favor of any legal person as apart from the partners individually.  For this reason, it is important that the name of the partners should be known and that it should also be known whether the party executing the lease has power to bind the partners.  Particular caution is needed when the deed relates to land, as the powers of partners to bind each other in this respect are strictly limited.


6.         As the standard forms usually provide for execution by a single individual on behalf a copy of the more usual forms of execution for other transactions is attached.

The appropriate form should be included in the draft; and if any particular difficulty arises it should be specifically referred to the Legal Remembrance.


7.         All references to specified sums of money, terms of years and so on should invariably be expressed in  words, and not in figures.  Abbreviations should be used as little as possible.


8.         Schedules, maps and plans form part of a draft, and should always be included in any draft which is to be sent to the Legal  Remembrance for scrutiny.



1. (In the case of a Firm* ) :-


Signed by the above mentioned firm of –

Through                                                                                    partner of the said firm.


N. B. –The forms of execution by the second party, a vendee, should be one in the appropriate form as follows :-


            In the presence of –

            Signature                                                                                  Signature

            Address                                                                                   Address

            Description                                                                               Description


N. B. – The Collector should satisfy himself from a partnership deed or otherwise that executant has full power as such to bind the firm, - vide section 58(d) of the India Partnership Act, 1932; failing which a special power-of-attorney should be demanded from absent partners in favour of the person signing, which should be retained with Government’s copy of the conveyance.


2. (In the case of a Society) :-


The seal of the ( the society hereinbefore referred to) was hereunto affixed by virtue of a resolution of the Governing Committee No.                                                 ,date the           Day of 19            .  In the presence of –


                                                Member of the Governing Committee.

                                                Member of the Governing Committee.

                                                Member of the Governing Committee.


3. (In the case of a Company ) :-


The seal of the Company, Limited, was affixed by virtue of the resolution of the Board No.        , dated the

                        day of              19 .                               In the presence of –








*Name or names of vendee  firm or partner thereof.


            N. B. –In the case of either a society under Act XXI of 1860, or II or 1912 of a company incorporated under the Companies Act, the Collector should require a copy of the resolution above referred to certified correct (either by one of the members of the Governing Committee of the Society or by a Director or a Secretary or the Company, as the case may be) authorizing the particular executants  or executants to sign or to affix the seal.  It is, however, not necessary for the persons mentioned above always to execute conveyance themselves, and it is some times not convenient for them to  do so in person as it involve all the officers in question appearing before the Sub-Registrar and bringing with them the seal of the Society or Company.  If they so desire they may execute a special power of attorney authorizing any respectable person preferably one of their own body to do all things necessary for the single transactions, viz., “the completion of the conveyance” which will be referred to in the preamble to such power-of-attorney.  In that case the poser-of-attorney will require to be executed on paper stamped at Rs 2, and though it need not be  registered or authenticated by the Sub-Registrar (vide circular No49/3076/1/30, from the Inspector-General of Registration.  Punjab, dated 7th August, 1933) – the Collector may required by an Attorney it will be presented for registration by the Attorney.





(Referred to in Rule 2.48)


Destruction of Record




The destruction of records (including correspondence) connected with accounts is governed by the following rules and such other subsidiary rules consistent therewith, as may be prescribed by Government with the concurrence of the Accountant-General :-


            (a) The following record should on no account be destroyed :-


            Records connected with expenditure which is within the period of limitation fixed by law.

Records connected with expenditure on projects, schemes, or works not completed, although beyond the period of limitation.

            Records connected with claims to service and personal matters affecting persons in the service.


Orders and sanctions of a permanent character until revised.


(b) The following should be preserved for not less than the periods specified against them:-


Description                                           Period of preservation expressed in complete years.


(i) Register of contingent expenditure     5

(ii) Sub-vouchers relating to contingent to

       contingent charges :-

(a) not exceeding Rs. 50                                   1} Provided that where local check is exercised

(b) exceeding Rs. 50                                         3} by departmental authorities or by A. G.’s  office

                                                                              sub-vouchers should not be destroyed until audit

                                                                              until audit for the relevant period has been

                                                                              conducted and objections settled.

(iii)Detailed budget budget estimates of an

      office                                                            5

(iv)Travelling Allowance Biils and acquittance

      rolls relating thereto                                       5


(v) Service book of Government  employee          5 years from the date of resignation.


(b) Service book of Government                         (i) 5 years if no case is pending in any cour.

employee who has been retrenched /



(ii) 3 years after final judgement under the normal       

      course of law, that is the last judgment or

      judgement of the highest court as established

      by law where the court as established by the

      Government’s decision to retrench/remove/

      Dismiss the Government employee concerned.


(c) Service book of Government employee who                    25 years from the date of retirement/death.

      retires from service/dies while in service.


Note :- before the actual destruction it should be ensured that pension/provident fund cases of the persons to whom the Service Books relate, have been finallsed.


(vi) Leave accounts of non-gazetted                          10 years after death or 5 years after retirement.

            Government employees.


            (vii) Statement of monthly progressive             2

            expenditure and correspondence relating

            to discrepancies in figures.


            (viii) Pay bills and acquittance                            35

            rolls, where these are maintined

            separately, of Government employees

            for whom no service books or service books

            or service rolls are maintained.


            (ix) Pay bills of other classes of Government                  6

            employees and acquittance rolls for pay and

            allowance (other than traveling allowance).


            (x) Muster Rolls.                                                           Such period as may be prescribed in this

                                                                                                behalf under the departmental regulations

                                                                                                subject to the minimum of 3 years excluding

                                                                                                the year of payment.


            (xi) Cash books maintained by Drawing and                  10

            Drawing and Disbursing Officer.


(xii) Nominations relating to family pension

and D. C. R. gratuity received under Liaberalised

Pension Rules.  If the gratuity and / or family

pension are paid :-


(a) to minors.                                                                30

(b) to other than minors not in accordance with the        30

occordance with the order in which nominations have

been made.


( c) to other than minors in accordance with 

6 years after the payment of death-cum retirement

gratuity or the last instalment of family pension has

been paid. the order in which nomination has been made.


(xiii) Provident Fund Nominations.                                Same as in the case of (xiii) above.


(xiv) Paid cheques returned by the Bank to

the Audit/Accounts office.


(xv) Cases in which invalid pension have                        25or three years after the death of pensioner.

been sanctioned.


Note 1. –The periods of preservation of  accounts records in Public Works Office are prescribed         

            As prescribed separately by Government.


Note 2. –Before any pay bills are destroyed, the periods of temporary and officiating service Recorded in the service books or service rolls (as the case may be) of the Government employee concerned should be verified by the head of the office from the pay bills and the fact of such verification should be recorded under proper attestation in the service books or service rolls (as the case may be). In regarded to temporary and officiating service, the head of the office should also invariably give necessary particulars with reference to rules 3.19 and 3.20 of the Punjab Civil Services Rules, Volume II, with the view to enable the Audit Office to decide later on by reference merely to such particulars either the temporary or officiating service will qualify for pension or not.  For example, in the case of officiating service, the nature of the vacancy in which the Government employee officiated and in the case of temporary service whether the temporary post was subsequently made permanent should be stated.


            ( c) Where a minimum period after which any recorded may be destroyed has been prescribed, the Head of a Department, the Divisional or District Officer may order in writing the destruction of such recorded in their own and subordinate offices on the expiry of that period counting from the last day of the latest official year covered by the record. 


            (d) In regard to land presented to Government in the form of rent-free leases for specific purposes, the departmental file regarding negotiations with the owners of land for such leases should not , in the interest of lessor and lessee be destroyed.





            And also that if and whenever any change in the constitution of the firm shall happen whether by deqath or retirement of any member thereof or the introduction or occasion of a new member or members thereof or otherwise howsoever the firm will on every such occasion within 7 days after the change shall have occurred give notice in writing to the Governor of the same having happened with full particulars thereof  including the full name or names of any new member or members so introduced as aforesaid and in every case where any such introduction has taken place will as soon as may be hereafter on being so required by the Governor procure new member or members introduced to enter into a fresh bond in the same form as these presets either alone or jointly with all the original or remaining members of the firm;


            Provided ALWAYS AND IT IS HEREBY AGREED and declared that the arrangement hereby made shall not be determined except by express notice in that behalf given as next DECLARED that either the  ___firm ___or the Governor shall be entitled to determine the arrangement hereby made on


Hereby made on giving to the other 14 days notice in writing is that behalf and on the expiration of such 14 days this arrangements shall determine and the liability of the  ___firm___ under the convenant


Herein contained shall cease in respect of any such payments as aforesaid made after that date but nothing herein contained shall be deemed to exonerate or release the  ___firm__ from their liability


under the convenant herein  contined in respect of any such payments as aforesaid made prior to that date.  PROVIDED ALWAYS and it is hereby further agreed and declared that in the case of pension the  __firm__ will according to prescribed rules once in every year furnish to the Governor or the official or company officials responsible for the payment of the such pension ___________________________________________________________________ a certificate by one of the persons            Accountant General, Punjab Prescribed by; the said rules of the life of each pensioner whose pension is paid to the firm and a certificate of non-employment signed by the pensioner himself, AND ANOTHER  that

  Any of the said official whose

Nothing herein contained shall be deemed to preclude the Governor of ________________________________________

                                                The Accountant General

Duty it is to make such payments as aforesaid

_______________________________________from requiring the production of certificates.


In proof of the life of any particular person or persons entitled to receive such payments as aforesaid if the Governor or  _______________________________________shall deem it necessary nor shall

                                    The Accountant-General

The  ____firm’s ___arrangement made by these presents be deemed to be thereby terminated.


In witness where of the said parties have hereunto set their respective hands and seals the day and year first above written.


 An incorporated firm executing the bond may deleted “the words in italics”



(Referred to in rule 5.9)

Extract from sub-section (1) of Section 60 of the Code of Civil Procedure, 1908, as amended by the Code of Civil Procedure (Amendment) Act, 1976 brought into force from 1st February, 1977.


            “60 (1) the following property is liable to attachment ………………………. In execution of decree :


            Provided that the following particulars shall not be liable to such attachment…………………….………………………………… namely :-


            (i) salary to the extent of the first four hundred rupees and two-third of the remainder in execution of any decree other than a decree for maintenance :


            Provided that where any part of such portion of the salary as is liable to attachment has been under attachment, whether continuously or intermittently for a total period of twenty four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months, and, where such attachment has been made in execution of one and the same decree, shall, after the attachment has continued for a total period of twenty four months, be finally exempt from attachment in execution of that decree :


            (i-a) one-third of the salary in execution of any decree for maintenance :


            (1) Any allowance forming part of the emoluments of any servant of the Government ……………………… which the appropriate Government may be notification in the official Gazette declare to be exempt from attachment and any subsistence grant or allowance made to any such servant ……………..……………… while under suspension :


            Explanation 2. –In clause (i) and (I-a) ‘salary’ means the total monthly emoluments excluding any allowance declared exempt from attachment under the provisions of clause (e) derived by a person from his employment whether on duty or on leave.


            Explanation 3. –In clause (I) “appropriate Government” means. –


(i)                                                                              as respects any other servant of the Government or a servant of any other local Central Government.

(ii)                                                                            As respects any other servant of the Government or a servant of any other local authority the State government.


Explanation 4. –For the purposes of this proviso “Wages” includes bonus and “labourer”includes a skilled, unskilled or semi-skilled labourer.


            Note 2. –The following declarations have been issued by the Central Government and adopted by the State Government, under clause (e) of the proviso to sub-section (1) of Section 60 of the Code of Civil Procedure :-


            (1) The following allowances payable to any public officer in the service of the government, or any servant of a Railway, or of a Cantonment Authority or a Port Authority of a major port, shall be exempted from attachment by order of a court :-


(i)                                                                                    all kinds of traveling allowances.


(ii)                                                                                  All kinds of conveyance allowances.


(iii)                                                                                 All allowances granted for meeting the cost of uniforms, and rations,

(iv)       allowances granted as compensation for higher cost of living in localities considered by the Government to be expensive localities, including hill Stations.


(v)                                                                                  all houses-rent allowances.


(vi)                                                                                dearness allowance or any other allowance granted to provide relief against the increased cost of living.


(vii)                                                                               a foreign allowance or frais-de representation in the case of Diplomatic Missions, assigned to officers serving in posts abroad.


(viii)                                                                             Children’s Education Allowance (whether described as such or as children education assistance or any other manner).


(ix)                                                                                All amounts paid by way of reimbursement of medical expenses.


Note 3 –Dearness pay, which is really a part of the dearness allowance and is treated as pay for

Certain specific purpose only, is also exempt from attachment by order of a Court.



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