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THE OIL AND NATURAL GAS COMMISSION ACT, 1959

Title : THE OIL AND NATURAL GAS COMMISSION ACT, 1959

Year : 1959



(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established a Commission to be called the Oil and Natural Gas
Commission.

(2) The Commission shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract and shall by the said name sue and be sued.



The Commission shall consist of a chairman and not less than two, and not more than eight, other members appointed by the Central Government and the members may be required to render whole -time or part-time service, as the Central Government may direct ;

Provided that one of the members shall be a whole-time Finance
Member in charge of the financial matters relating to the Commission :

Provided further
that the Central Government may, if it thinks fit, appoint one of the members as vice-chairman of the Commission.



(1) The term of office and conditions of service of the chairman and other members shall be such as may be prescribed:

1*Provided that the Central Government may-

(a) Terminate the appointment of any whole-time member, who is not a servant of the Government, after giving him notice for a period of not less than three months or in lieu thereof on payment of an amount equal to his salary and allowances, if any, for a period of three months;

(b) Terminate the appointment of any part-time member who is not a servant of the Government after giving him notice for such period as may be prescribed; and

(c) 2*Terminate at any time the appointment of any member who is servant of the Government.

(2) Any member may resign his office by giving notice in writing
3*[for such period as may be prescribed,] to the Central Government, and on such resignation being notified in the Official Gazette by that Government, shall be deemed to have vacated his office.

(3) A casual vacancy created by the resignation of a member under sub-section (2) or for any other reason may be filled by fresh appointment,

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1 15th October, 1959, see Notification No. S. O. 2303, dated 14th
October., 1959. Gazette of India, Extraordinary, 1059, Pt. 11, Sec.
3(ii), p. 515.

2 Subs. by Act 17 of 1981, s. 2, for the proviso.

3 Ins. by s. 2, ibid.

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A person shall be disqualified for being appointed or for continuing as a member, if he has, directly or indirectly, any interest in a subsisting contract made with, or in any work being done for, the Commission.



If any member is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment the Central Government may appoint another person to act in his place during his absence.



No act or proceeding of the Commission shall be invalid by reason only of the existence of any vacancy among its members or any defect in, the constitution thereof.



(1) The Commission shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made under this Act.

(2) The Chairman or, in his absence, the vice-chairman, if any, or in the absence of the chairman and of the vice-chairman if any, any member chosen by the members from among themselves, shall preside at a meeting of the Commission.

(3) All questions at a meeting of the Commission shall be decided by a majority of the votes of the members present and voting, and in the case of an equality of votes, the chairman or, in his absence, the person presiding, shall have a second or casting vote :

Provided that the person presiding may in his discretion, reserve any matter for the consideration of the Central Government.



(1) The Commission may associate with itself in such manner and for such purposes, as may be provided by regulations made under this Act, any person whose assistance or advice it may desire in performing any of its functions under this Act.

(2) A person associated with it by the Commission under sub-
section (1) for any purpose shall have a right to take part in the discussions of the Commission relevant to that purpose, but shall not have a right to ,vote at a meeting of the Commission, and shall not be a member for any other purpose.



All orders and decisions of the Commission shall be authenticated by the signature of the chairman or any other member authorised by the Commission in this behalf, and all other instruments issued by the Commission shall be authenticated by the signature of an officer of the Commission authorised in like manner in this behalf.




(1) Subject to the provisions of section 15, the Commission may, for the purpose of enabling it efficiently to perform its functions or exercise its powers under this Act, appoint such number of employees as it may consider necessary

(2) The functions and the terms and conditions of service of such employees shall be such as may be provided by regulations made under this Act.



(1) Subject to the provisions of this Act, every person employed by the existing Organisation immediately before the date of establishment of the Commission shall, on and from such date, become an employee of the Commission with such designation as the Commission may determine and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions as he would have held the same on such date if the Commission had not been established and shall continue to do so unless and until his employment in the Commission is terminated or until such tenure, remuneration and terms and conditions are duly altered by the
Commission

Provided that-

(a) The tenure, remuneration and terms and conditions of service of any such person shall not be altered to his disadvantage without the previous approval of the Central
Government;

(b) Any service rendered in the existing Organisation by any such person shall be deemed to be service under the
Commission; and

(c) All persons employed by the Commission on the date of its establishment, who, immediately before such date, hold, in a permanent or quasi-permanent capacity , posts in connection with the affairs of the Union or of any State, but not posts in the existing Organisation, shall be treated as Government servants on foreign service with the Commission.

(2) The Commission may employ any person who has become its employee under sub-section (1), in such capacity as it thinks fit, and every such employee shall be bound to discharge his functions accordingly.
Last updated on September, 2016

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