DS, For Discharging Functions

Chapter 4 (Manual 3)
Rules, Regulations, Instructions, Manual and Records, for Discharging Functions

4.1 Please provide list of rules, regulations, instructions, manual and records, held by public
authority or under its control or used by its employees for discharging functions as per the
following format. This format has to be filled for each type of document.
Name/tittle of
The document
Common Cadre
Type of the document
Service Rules
Choose one of the types given below.

(Rules, Regulations, Instruction,
Manual, Records, Others)
Brief Write-up on the Document
These documents define the rules which govern the services of Common Cadre Employees
of Milkfed.
From where one can get a copy of rules, regulations,
Address:
Instructions, manual and records
SCO 153-55, Sec-34, Chd.
Ph. No:-5041812-815
____________________
Fax:5041856
___________________
E-mail: [email protected]
___________________
Others:
___________________
Fee charged by the department for a copy of rules, : As per Manual 17 of this book.
Regulations, instructions, manual and records (If any)
Common Cadre Rules are as under:THE PUNJAB STATE COOPERATIVE MILK PRODUCERS FEDERATION
SERVICE(COMMON CADRE ) RULES, 1980.
SHORT TITLE
1.1) These Rules shall be called the Punjab State Co-operative Milk Producers Federation
Limited Service (Common Cadre) Rules, 1980.
1.2) These Rules shall come into force immediately.
DEFINITIONS; 1.3 In these rules, unless the context required otherwise:a) 'Federation' means the Punjab State Cooperative Milk Producers Federation Limited.
b) 'Board' means the Board of Directors of the Federation.
c) Deleted.
d) Appointing Authority means the Managing Director of the Federation.
e) 'Chairman' means the Chairman of the Federation.
f) 'Managing Director' means the Managing Director of the Federation.
g) 'General Manager of Union' means the General Manager of a Cooperative Milk Producers
Union, affiliated to the Federation.
h) 'Government' means the Government of Punjab.
i) 'Registrar' means the Registrar, Co-operative Societies, Punjab or his nominee, not below the
rank of Joint Registrar, nominated by him in this behalf.
j) 'Union'means a Co-operative Milk Producers Union affiliated to the Federation.
k) 'Direct Recruitment' means the appointment made otherwise than by promotion from within
the common cadre or by transfer on deputation.
l) 'Equivalent Posts' means any two or more posts in the service carrying identical time scale.
m) 'Family' means wife, dependent minor sons and dependent minor unmarried daughters.
n) 'Salary' means monthly pay inclusive other allowances treated as pay.
1.4 AUTHORITY TO IMPLEMENT THESE RULES
(a)These rules shall be administered by the Managing Director.
(b)Deleted.
(c)Deleted.
(d)Deleted.
1.5 These rules shall apply to employees of Unions and Federation included in the Common
Cadre as given in Annexure-I as amended from time to time with approval of the Registrar,
Cooperative Societies.
1.6 CONTROL OVER THE EMPLOYEES ON COMMON CADRE
All the employees covered in the categories given in the Annexure-I shall be deemed to be in the
service of the Common Cadre subject to the conditions and provisions of the rules.
1.7 CATEGORIZATION,QUALIFICATION AND PAY STRUCTURE OF EMPLOYEES OF
THE COMMON CADRE;
The various categories covered by the Common Cadre and pay scales ,qualifications and
experience of each of the categories of the posts shall be as specified in Annexure-I.
Provided that the Board of Directors of the Federation may add or delete any post or category of
posts or revise the scale of pay or fix the qualifications and experience contained in Annexure-I
from time to time with the approval of the Registrar, Co-operative Societies, Punjab.
1.8 PAY OF EMPLOYEES IN COMMON CADRE
Pay of employees of the Federation and Unions who are taken on the Common Cadre or deemed
to be taken on Common Cadre under rule shall be fixed in the grade specified in Annexure-I
according to the principles of pay fixation laid-down in the Punjab Civil Service Regulations
Vol.I Part-I.
1.9 CREATION OF STAFF STRENGTH

Strength of the staff in different categories in the Common Cadre shall be as in Annexure-IA,
provided that Board shall be competent to enhance or reduce the strength of any such category
from time to time with the approval of the Registrar, Cooperative Societies, Punjab.
1.10 SENIORITY
Seniority of the employees who are taken into Common Cadre under the provisions of these
rules shall be determined in a particular caegory on the basis of the their length of service on
the post held at the time of enforcement of these rules provided that the employees working in
higher grade just before the enforcement of these rules shall be deemed to be senior to the
employee working in lower grade in the same category. The qualified length of service shall
include the continuous officiating period of service on the posts in the category. Provided further
that if the date of joining is the same in case of two or more employees against equivalent posts
in the same category their seniority inter-se shall be determined according to the age, the elder
being the senior and if in case of such employees the date of birth of any two or more employees
is also the same then seniority shall be decided by the Managing Director. An appeal against this
order shall lie to the Board of Directors within 30 days of the communication of the order.
1.11 FINANCIAL LIABILITIES OF THE FEDERATION AND THE UNIONS TOWARDS
THE SERVICE:
(a) The pay for the period of duty including all allowances shall be paid to the employees in
Common Cadre by the Federation or by the Unions for which the duty is performed.
(b) For the period of leave, the leave salary alongwith allowances shall be paid by the
Federation.
(c) The unions concerned shall pay to the Federation contribution in respect of leave salary
inclusive of all allowances, provident fund and gratuity and bonus at the rates intimated from
time to time by the competent authority. The Federation shall maintain leave salary contributions
fund and gratuity contributions fund for the contributions received from the Unions and these
funds shall be administered by the Managing Director.
(d) On transfer of any employee from one Union to another Union or Federation to a Union or
vice-versa the transfer travelling allowance and joining time pay shall be paid by the Unions or
Federation, as the case may be to which the employee has been transferred.
(e) During the period of any training to which an employee is deputed by the Federation, the pay,
allowances, stipend, TA etc. shall be paid by the Federation. Such expenditure shall be
reimbursed to the Federation and shall ultimately be borne by the Unions in which the employee
served during 36 months subsequent to training and shall be borne proportionately by the Unions
in proportion to the period served by employee with each Union.
(f) In case of any doubt or dispute as to whether a particular period of duty relates to one Union
or another and the Federation, the matter shall be decided by the Managing Director.
APPOINTMENT OF EMPLOYEES IN COMMON CADRE AND GENERAL CONDITIONS
OF THEIR SERVICE.
2.1 APPOINTING AUTHORITY

Authority to make appointments to different categories of posts in the Common Cadre shall vest
in the Managing Director. Provided that the approval of RCS shall be obtained before the
appointment of the officer of the rank of General Managers and above.
2.2 GENERAL CONDITIONS RELATING TO APPOINTMENTS
The following general conditions shall apply to all appointments to the service:a. Only Indian Nationals, displaced persons from Pakistan who have permanently migrated to
India or subjects of Nepal, Sikkim or Bhutan shall be eligible for appointment to the service.
b. No person shall be appointed to the service by direct recruitment if he is less than 21 years and
more than 45 years of age on the date of selection subject to the condition that the Board may
relax upper-age limit in the case of specialized and technical category of posts.
c. No person shall be appointed unless he has been certified by an officer not below the rank of
Asstt.Surgeon to be of sound constitution and medically fit to discharge his duties.
d. No person shall be appointed to the service if he has previously been dismissed from the
service of any Govt. Department or any other Institution in Public, Private or Co-operative
Sector.
e. No person shall be appointed to service if he is convicted of an offence involving dishonesty
or moral turpitude.
f. No person shall be posted in Federation/Union in which any of the Directors is related to him
within the meanings of Rule (2K) of the Punjab Cooperative Societies Rules,1963.
g. Qualification of Punjabi pass upto Matric standard shall be one of the prescribed qualifications
for all the existing posts governed under these rules or which may be created later on. However,
relaxation from this qualification can be considered in respect of higher level technical posts on
merit basis with the approval of Registrar, Cooperative Societies, Punjab.
Provided that where a person is appointed on compassionate grounds on priority basis under the
instructions issued in this behalf, the person so appointed if does not possess required Punjabi
qualification, will have to acquire knowledge of Punjabi language of Matriculation standard or
will have to qualify a test conducted by the Language Wing of the Department of Education of
Punjab Govt. within six months from the date of appointment.
2.3 NATURE OF APPOINTMENT
(a) An appointment to the service may be of any one of the following types:
Purely temporary.
Temporary.
Substantive.
(b) A person appointed temporarily against a post may be made substantive, if found suitable by
the appointing authority. The Appointing Authority shall have the right to decide whether a
particular vacancy should be filled up by direct recruitment or by promotion or by transfer on
deputation.
2.4 APPOINTMENT BY DIRECT RECRUITMENT
(a) The minimum qualifications for direct recruitment for posts under a category shall be such as
has been specified for that category in Annexure-I. However, the Appointing Authority may fix
any preferential qualification under a particular category of posts with the approval of the
Registrar.
(b) The Appointing Authority shall fix the order of merit while making selections and
appointments to the posts shall be made according to the merit list. The interse seniority among
the recruits shall also be fixed on the basis of the merit.
(c) The reservation for the members of Scheduled Castes, Scheduled Tribes and Backward
Classes in direct recruitment and promotion shall be in accordance with the Punjab Govt. policy
as may be inforce from time to time.
2.5 APPOINTMENT BY PROMOTION
Appointments by promotion to posts in a category shall be made from amongst eligible
employees, working in lower category on the basis of merit cum seniority and record of service.
Promotion shall be made as per Punjab Govt.instructions and parameters prescribed from time to
time.
2.6 COMMENCEMENT OF SERVICE
Service shall be deemed to commence from the working day on which an employee reports for
duty. If he reports for duty in the afternoon, the service shall be deemed to commence from the
following day.
2.7 PROBATION
(a) A person appointed to a service shall remain on probation for a period of one year, if
appointed by promotion or appointed through direct recruitment. Provided that an officiating
appointment in a service shall be reckoned as a period spent on probation.
(b) On the completion of the period of probation of a person, the Appointing Authority may,
1. If his work and conduct have, in its opinion, been satisfactory:o Confirm such person from the date of his appointment if appointed against a
permanent vacancy or.
o Confirm such person from the date from which a permanent vacancy exists,if
appointed against a temporary vacancy or
o Declare that he has completed his probation satisfactorily, if there is no permanent
vacancy or
2. If his work or conduct has not been in its opinion, satisfactory:o Dispense with his services, if appointed by direct recruitment if appointed
otherwise revert him to former post or deal with him in such other manner as the
terms and conditions of his previous appointment may permit or
o Extend his period of probation and thereafter pass such orders as it could have
passed on the expiry of the first period of probation.
Provided that the total period of probation including extension, if any, shall not
exceed two years, both in case of recruitment made direct or by promotion.
3. A person appointed by direct recruitment shall be entitled to the salary and other financial
privileges attached to the post during the period of his probation.
2.8 MODE OF APPOINTMENT

Appointment to the various posts shall be made as under:1. GENERAL MANAGER MILK UNION/PLANT
o By direct recruitment.
o By promotion among the Manager Production, Manager Quality Control,
Manager Engineering and Projects Manager Engineering, Manager Milk Proc.,
Team Leader with atleast five years experience.
o By transfer of a person on deputation from any department of Government or any
Institution.
2. MANAGER (ENGG & PROJECTS)/MANAGER ENGINEERING
o By promotion among the Dy.Manager (Engg.) with atleast five years experience
and Graduation in Engineering.
o By transfer of a person on deputation from any Department of Govt. or any
Institution.
3. MANAGER ANIMAL HEALTH/MANAGER ANIMAL BREEDING.
o By promotion among Artificial Insemination Officers & Vety.Officers with
atleast five years experience. In case of Manager (Animal Breeding)/Veterinary
Officer/Artificial Insemination Officer, must possess Post Graduation in Animal
Breeding/Gynecology.
Institution.
4. DEPUTY MANAGER ENGINEERING
o By promotion from the post of Foreman, Elect.or Refrigeration or General.
Institution.
5. DEPUTY MANAGER (ADMN)/ ADMINISTRATIVE OFFICER
Institution.
6. MANAGER MILK PROCUREMENT/TEAM LEADER/MANAGER (EXTENSION
AND PROCUREMENT).
o By promotion among the Artificial Insemination. Officers/Veterinary
Officers/Fodder Development.Officer/Dy.Manager(Proc.) /Dairy Extension
Officer with atleast five years experience.
o By transfer of a person on deputation from any department of Govt. or any
Institution.
7. MANAGER ACCOUNTS
o By promotion from Deputy Manager (Accounts) with atleast five years
experience.
Institution.
8. MANAGER TECHNOLOGY.
o By promotion among Deputy Manager (Production) with atleast five years
experience.
Institution.
9. MANAGER PRODUCTION/QUALITY CONTROL
o By promotion from among the Dy Managers(Prod.)/Quality Control with atleast
five years experience.
o By transfer of a person on deputation from any department of Govt.or any
Institution.
10. DEPUTY MANAGER PRODUCTION/QUALITY CONTROL.
o By promotion among the Asstt.Manager Production/ Quality Control/Manager
Chilling Centre with atleast three years experience.
o By transfer of a person on deputation from any department of Govt.or any
Institution.
11. ARTIFICIAL INSEMINATION OFFICER / VETY.OFFICER/ FODDER
DEVELOPMENT OFFICER/ DAIRY TECHNOLOGISTS/DAIRY EXTENSION
OFFICER/ DEPUTY MANAGER ACCOUNTS/DEPUTY MANAGER
MARKETING/SECURITY OFFICER/ DEPUTY MANAGER
PRODUCTION/DEPUTY MANAGER QUALITY CONTROL AND MANAGER
CHILLING CENTRES.
Institution.
12. The mode of direct recruitment applicable to a post shall be regulated as under :As & when any vacancy arises for the purpose of direct recruitment the vacancy shall be
filled up :o Calling applications through the mode of limited circulation from the candidates
eligible within the organisation. If the suitable and sufficient candidates are not
available within the organization, then the applications from suitable candidates in
the similarly substituted sister co-operative organizations should be called and in
case suitable and sufficient number of candidates are not available in the similarly
substituted sister organizations then the applications shall be called from other cooperative organizations in the State.
o If sufficient and suitable candidates do not become available by following the
method in sub rule 2.8(a)(12) (i) above then the applications may be called from
the open market.
o Technical posts such as Deputy Managers in the area of Production,Chilling
Centre,Procurement,Quality Control, MIS,Purchase,Engineering and
Veterinarians can be filled up through campus interview in renowned Institutions/
Colleges which may be recognized by the Milkfed with the approval of the
BOD.Such incumbents will be appointed as Management Trainees for a period of
two years and shall be given a consolidated salary as fixed by the Board from
time to time. Thereafter they shall be placed in regular pay scale, if found suitable
and kept on probation as per rules.
2.9 POSTING AND TRANSFERS
(a) The Managing Director shall be competent to post any employee in Federation or in any
Union or transferany employee from one Union to another Union or Federation or vice-versa
against any equivalent post or alongwith the post.
(b) Employees excepting those taken on deputation from the Govt. or any other Institution when
posted or transferred to in or in any Union shall not be entitled to claim any deputation
allowance.
2.10 TRAINING AND EXAMINATION.
The Managing Director may depute any employee of the service to undergo any course or
courses of training.Provided that if any employee is deputed for training within country for a
period exceeding six months or an employee is deputed for training for any period abroad, he
shall execute a bond undertaking to serve the institution for atleast three years after the
completion of such training, failing which the employee shall be liable to pay all such expenses
which were incurred by the Federation or the Union towards his training.
2.11 SECURITY
The members of the service shall furnish such security in favour of the Federation as may be
decided by the Appointing Authority for the posts in accordance with the instructions issued by
the Registrar.
2.12 TERMINATION OF SERVICE
(a) The service of a person appointed in a purely temporarily manner as provided under Rule 2.3
(a) may be terminated at any time within a period of three months without any notice.
(b) The service of a person appointed temporarily as provided under Rule 2.3 (a) may be
terminated with one months notice.
(c) The service of an employee may also be terminated on account of mis-conduct , dishonesty or
moral turpitude established on record in accordance with the procedure laid-down in AnnexureII.
Provided that the services of a person undergoing probation may be terminated without notice on
account of unsatisfactory work.
(d) "Misconduct shall also include sexual harassment of women in any form at work place by
any male employee." For this purpose sexual harassment include such unwelcome sexually
determined behaviour (whether directly or by implication) as:
Physical contact and advances;

demand or request for sexual favours;
sexually coloured remarks;
showing pornography;
any other unwelcome physical verbal or non verbal conduct of sexual nature.
2.13 RESIGNATION
(i) No employee who has been in the service continuously for a period of three months, shall
resign his post unless he has given thirty days previous notice or pay in lieu thereof or surrender
the pay for the period for which the notice falls short.
(ii) When an employee contravenes the provisions of claus: supra his unpaid wages for a period
not exceeding thirty days shall be forfeited.
(iii) Resignation may be accepted by the Appointing Authority with immediate effect or with
effect from the date of expiry of the period of notice in which case an employee shall be paid
salary in respect of actual period spent on duty in the service.
2.14 RETIREMENT
(a) Every employee appointed to the service shall ordinarily retire on attaining the age of 58
years.(w.e.f.28.7.06)
Provided that in the case of pendency of any criminal or disciplinary proceedings against any
employee on the date of attaining the age of 58 years, such proceedings shall continue beyond
the said date of superannuation and he or she shall be subject to the decision thereof.
Provided that the disciplinary proceedings going on against an employee at the time of retirement
shall be completed preferably within a period of six months from the date of retirement.
Provided further that the disciplinary proceedings can be initiated even after the retirement of an
employee on superannuation in respect of a cause of action which arose or an event which took
place within a period of four years prior to the retirement of after the completion of the reemployment.
(b) Notwithstanding anything contained in Clause (a) above, any employee may be required by
the Appointing Authority or permitted at his own request to retire from the service on attaining
the age of 50 years or after 20 years of service.
(c) Notwithstanding anything in Clause (a) & (b) the Appointing Authority shall if it is of the
opinion that it is in the interest of the Institution to do so, have the absolute right , by giving an
employee prior notice in writing to retire that employee on the date on which he completes
twenty years of service or attains 50 years of age or any date thereafter to be specified in the
notice.
Provided that the period of such notice shall not be less than three months. Provided further that
where atleast three months notice is not given or notice for a period less than three months is
given, the employee should be entitled to claim remuneration equivalent to the amount of his pay
and allowances at the same rates at which he was drawing than immediately before the date of
his retirement for a period of three months or for the period by which such notice falls short of
three months as the case be.
2.15 DISCIPLINE AND APPEAL
Notwithstanding anything contained in any other regulation and without prejudice to such action
to which an employee becomes liable under any other law or regulation for the time being in
force, the employee of the common cadre shall be governed by the Discipline, Punishment and
Appeal Rules attached as Annexure-II.
FIXATION OF PAY, ALLOWANCES AND OTHER CONCESSIONS.
3. PAY
3.1 Except as provided otherwise in the Rules an employee appointed to a category shall draw
the minimum in the scale fixed for the category in Annexure-I.
3.2 If an employee is promoted from a post in a lower category to a post in higher category, his
initial salary in the higher post shall be fixed at the stage in the higher sce next above his pay in
the lower scale.
3.3 (a) Annual Increment on first appointment or direct recruitment or on promotion shall be
allowed after the concerned employee completes the probation period satisfactorily.
(b) Subject to the provisions of Sub-clause (a) the annual increment in the pay scale shall accrue
normally to an employee after he has completed one year's service at a stage in the pay scale
unless it has been previously with-held for reasons of unsatisfactory work or conduct. The
authority competent to withhold increment may withhold increment provisionally in case where
any charges with regard to unsatisfactory work or conduct are under investigation.
3.4 The following period shall count for completing the period of one year for the purpose of
grant of annual increment:(i) Period of duty in the post.
(ii) All periods of earned leave with full salary except sick leave on commuted salary.
(iii)Period of officiating service in a higher post in the service, provided the employee would
have worked on the lower post but for his officiating promotion to the higher post.
(iv) Period of suspension only if this period has been treated as duty under Rule 2.16 supra.
3.5 DELETED.
3.6 The sanction of increment & pay scales under Assured Career Progression Scheme shall be
considered and allowed by the Managing Director on the basis of reports called fromconcerned
quarter regarding the work, conduct, additional qualifications acquired, necessary specialized
training taken as may be prescribed by the Appointing Authority.
3.7 TRAVELLING ALLOWANCE
"Travelling Allowance & Daily Allowance to the employee of the Common Cadre shall be
admissible according to the Travelling & Daily Allowance Rules of the employees of the
Federation. However, in case of certain categories of field staff, the Managing Director shall be
competent to allow fixed TA in lieu of TA/DA as admissible under the TA/DA Rules of the
Milkfed for the performance of duties within their respective area of operation keeping in view
the nature of duties of such categories of employees with the approval of the Registrar, Cooperative Societies, Punjab
3.8 PROVIDENT FUND
The employees shall be entitled to the benefits of Contributory Provident Fund as provided in
employees Provident Fund Act,1952 and scheme framed thereunder.
3.9 BONUS
The employees in the Common Cadre shall be entitled Bonus at the rate at which the Federation
is required to pay under the Provisions of Bonus Act,1965 as modified from time to time. The
Unions shall pay the amount of Bonus in respect of the employees working with them within the
common cadre on the basis of bonus eligible to them according to the decision of the Board of
Directors of the union. The difference in the amount of bonus paid to the employees, in the
common cadre working with the Union, if any, shall be borne by the Federation.
3.10 MEDICAL FACILITY
Those employees borne on the Common cadre who are not covered under the ESI Act/Scheme
shall be entitled to medical benefit/reimbursement as per Punjab Govt instructions from time to
time (w.e.f.23.12.99)
3.11 GRATUITY
All the employees of the Milkfed irrespective of the posts held and salary drawn by them shall be
entitled to gratuity as per the provisions contained in the Payment of Gratuity Act as may be
amended from time to time w.e.f.24.5.94.
Provided that the gratuity payable to an employee against whom disciplinary/criminal
proceedings are in process and pending on the date of his/her retirement, shall be withheld till
completion of disciplinary/criminal proceedings & the matter regarding its payment shall be
decided on the basis of final outcome of such disciplinary/criminal proceedings.
LEAVE AND JOINING TIME
4.1 SANCTION OF LEAVE
No employee shall claim leave as a matter of right.
4.2 EARNED LEAVE
(a) Every employee shall be entitled to one day earned leave for every 18 complete days of
service (for the purpose of calculation of days of service,period of earned leave & leave without
wages shall not be counted).
(b) In calculating leave, fraction of half day or more shall be treated as one day's leave & fraction
of less then half day shall be ignored.
(c) Accumulation of earned leave shall not be more than 300 days subject to other conditions for
the grant of such leave as laid down in the Factories Act,1948 as amended from time to
time.(w.e.f.1.9.98)
(d) Encashment of earned leave upto a maximum of 30 days shall be allowed if the employee is
discharged or dismissed from service or quits his employment whereas encashment of earned
leave upto a maximum of 300 days shall be allowed on superannuation provided the balance of
earned leave upto this extent is at his credit at that time (w.e.f.1.9.98)
(e) The unavailed leave of an employee shall not be taken into consideration in computing the
period of any notice required to be given before discharge, removal or dismissal.
(f) Unless the extension of leave is sanctioned by the competent authority the wilful absence
from duty after the expiry of leave originally sanctioned shall amount of misconduct and no
salary shall be paid for the period of such unauthorised absence.
(g) Earned leave provided in Clause (a) shall, when applied for, be granted except for a valid
reason to be communicated in writing by the employer to the employee within 15 days of the
application.
Provided that the leave so refused shall if applied for again be allowed during year.
(h) Unless the extension of leave is sanctioned by the competent authority the wilful absence
from duty after the expiry of leave originally sanctioned shall amount to misconduct and no
salary shall be paid for the period of such unauthorised absence.

NOTE: For the purpose of this Rule, a year means a financial year of Punjab Govt.
4.3 Deleted.
4.4 Leave without pay may be granted to any employee in special circumstances.
4.5 SALARY DURING LEAVE
(a) During the period of earned leave allowed to employee under these rules,he shall be paid
salary at the rate of monthly pay applicable to him on the day preceding the commencement of
leave.
(b) During the leave without pay, no salary shall be allowed.
4.6 CASUAL AND SICK LEAVE
(a) Every employee shall be entitled to 12 days casual leave during the Calendar year.
(b) Every employee shall be entitled to 14 days sick leave in a Calender year. Those
employees,who are covered by the ESI Act/Scheme shall be entitled for 7 days sick leave instead
of 14 days in a year.
NOTE: Year, for the purpose of this clause mean the Calender year.
4.7 JOINING TIME
(a) Joining time may be granted to an employee to enable him to join a new post at a new station
on relinquishing charge of his old post;
(b) To join a new post in a new station on return from leave.
4.8 DURATION OF JOINING TIME
The duration of joining time admissible to an employee shall be 6 days and actual number of
days spent in travelling. However, competent authority may reduce the joining time keeping in
view the interest of the Institution and natur of assignment of the employee.
4.9 If an employee takes leave while in transit from one post to another, the period which has
elapsed since he handed over charge of his old post, must be included in the leave. On the expiry
of the leave the employee may be allowed normal joining time if due under 4.6 (b).
INTERPRETATION: AUTHORITY TO IMPLEMENT THESE RULES:
5.1 If any doubt arises at any time as to the interpretation of these rules of their application the
matter shall be referred to Board of Directors whose decision shall be final.
ANNEXURE-II OF RULE 2.15 REGARDING DISCIPLINE, PUNISHMENT AND APPEAL:
(i) In the matter of Discipline, Punishment and Appeal, the Punjab Civil Services (Punishment &
Appeal) Rules, 1970 as amended from time to time shall apply to the employees covered under
these rules.
(ii) In the matter of discipline, punishment and appeal, the Punjab Civil Services (Punishment &
these rules. However, inquiring authority to be appointed for holding inquiry shall include retired
judicial officers in addition to retired Punjab Govt. Officers.
(iii) (a) The Managing Director may suspend any employee against whom action is proposed to
be taken, if in his opinion the attendance of the employee on duty during the period the charges
are under investigation against him is likely to effect such proceedings.
(b) During the period of suspension an employee shall be paid subsistence allowance equal to
50% of his salary with usual allowances shall be paid by the Federation if the employee is
working in the Federation at the time of suspension, and if he is working in the by the Union
concerned.
Provided that the M.D. may direct the Federation or Union other than with which an employee
was working at the time of suspension to pay subsistence allowance by recording the reasons in
writing.
(c) If the employee, placed under suspension, is subsequently completely exonerated of the
charges, he shall be eligible to full salary and allowance for the period of suspension and the
entire period will be treated as duty, if however, he has not been completely exonerated of the
charges, the competent authority shall specify in the order of reinstatement as to how the period
of suspension should be treated and also the amount of pay and allowance to be paid to him for
such period. Salary and allowance payable under this provision shall be paid by the Federation if
the employee is working in Federation at the time of suspension and by the Union concerned if
he is working in a Union.
Provided that the Managing Director may direct the Federation or the Union other than which an
employee was working at the time of suspension to pay the salary and allowance by recording
the reasons in writing.
1.4 The Managing Director, Milkfed shall be competent authority to impose major and minor
penalties as provided in Rule 5 of the Punjab Civil Service (Punishment & Appeal) Rules, 1970
as amended from time to time, to all the employees covered under these rules.
1.5 a) An appeal against the orders of Managing Director imposing a penalty under Rule 1.4 of
the Rule shall lie to the Board of Directors within 45 days of the communication of the orders to
him/her.
ANNEXURE-I-A
STRENGTH OF STAFF ON COMMON CADRE.
S.No.
Designation.
Pay scale.
No.of posts of
Milkfed office.
1.
General Manager/ Managing

Director of Milk Union.
Rs. 3740067000+8700 GP
14
2.
General Manager of Milk

Unions without Plants.
Rs. 1560039100+7600 GP
3.
Manager (F&A)
-do-
4.
Manager (Engg.)
-do-
13
5.
Manager (Production)
-do-
11
6.
Manager (Quality Control)
-do-
11
7.
Manager (Exten.& Proc.)
-do-
11
8.
Manager (AH)
-do-
9.
Manager (Breeding)
-do-
10.
Manager (Accounts)
-do-
14
11.
Manager (Purchase)
-do-
12.
Manager (Seed & Multi.)
-do-
Name/tittle of
The document
Non-Common Cadre
Service Rules

These documents define the rules which govern the services of Non-Common Cadre
Employees of Milkfed.
Address:
SCO 153-55, Sec-34, Chd.
Ph. No:-5041812-815
____________________
Fax:5041856
___________________
___________________
Others:
___________________
Fee charged by the department for a copy of rules, : As per Manual 17 of this book. Regulations,
instructions, manual and records (If any)
Non-Common Cadre Rules are as under :THE PUNJAB STATE COOPERATIVE MILK PRODUCERS FEDERATION SERVICE
(NON COMMON CADRE) RULES 1985
1.Short Title
1. These rules shall be called the Punjab State Co-operative Milk Producers Federation Limited
Employees Service (Non-Common Cadre) Rules,1985.
2. These Rules shall be applicable to all those employees of Milkfed who are not covered by the
Punjab State Cooperative Milk Producers Federation Ltd., Service (Common Cadre) Rules,1985.
3. These Rules shall come into force from the date of approval of the Registrar Cooperative
Societies, Punjab.
2. DEFINITIONS: In these Rules unless the context requires other wise
(a) 'Milkfed' means the Punjab State Co-Operative Milk Producers Federation Limited.
(b) 'Board' means the Board of Directors of Milkfed
(c) 'Appointing Authority' means the Managing Director of Milkfed or any other Officer of
Milkfed authorised by the Managing Director, Milkfed in this behalf in respect of any category
of employees.
(d) 'Chairman' means the Chairman of Milkfed.
(e)'Managing Director, means the Managing Director of Milkfed.
(f) 'Government' means Government of Punjab.
(g) 'Registrar' means the Registrar Co-operative Societies Punjab, or his nominee not below the
rank of Joint Registrar, Co-operative Societies.
(h) 'Direct Recruitment' means the appointment made otherwise than by promotion or by transfer
on deputation.
(i) Employees' means the employee of Milkfed, except Casual/adhoc appointee, whether posted
in its Head Office or any Plant/Farm/Project Branch Office owned or controlled by Milkfed.
(j) 'Establishment' means the Milkfed Head Office, Plant/Farm/Project/Branch office owned or
controlled by Milkfed.
3. Categorisation of Posts with qualifications and pay scale:(i)The various categories of posts covered by these Rules along with their pay scale and
qualifications shall be as specified in Annexure-1 to these Rule:
Provided that the Board of Directors of Milkfed shall be competent to add or delete any post or
category of posts, revise the pay scale, fix the qualifications/revise the qualification of any post.
The Board of Directors shall also be competent to enhance or reduce the strength of any such
category of posts from time to time with the approval of R.C.S. in all such cases.
(ii) An employee holding the personal post shall also be governed by these Rules.
4. General Conditions relating to appointmentsAppointment to the service shall be subject to the following general conditions:(a) Only Indian Nationals, displaced persons from Pakistan who have permanently migrated to
India or subjects of Nepal, Sikkim or Bhutan shall be eligible for appointment to the service.
(b) No person shall be appointed to the service by direct recruitment if he is less than 18 years
and more than 45 years of age on the date of selection provided that the Board may relax upper
age limit in any special case.
(c) No person shall be appointed to the service if he has previously been dismissed from the
service of any Government Department or any other Institution of Public, Private or CoOperative Sector.
(d) No person shall be appointed to service if he is convicted of an offence involving dishonesty
or moral turpitude.
(e) No person shall be appointed to the service who is related to any of the Directors of Milkfed
within the meanings of Rule (2K) of the Punjab Cooperative Societies Rules,1963.
(f) No person shall be appointed unless he has been certified by an Officer not below the rank of
Chief Medical Officer to be of sound constitution and medically fit to discharge his duties.
(g) Qualification of Punjabi pass upto Matric standard shall be one of the prescribed qualification
for all the existing posts governed under these rules or which may be created lateron. However,
relaxation from this qualification can be considered in respect of higher level technical posts on
merit basis with the approval of Registrar, Cooperative Societies, Punjab.
Provided that where a person is appointed on compassionate grounds on priority basis under the
instructions issued in this behalf, the person so appointed if does not possess required Punjabi
qualification, will have to acquire knowledge of Punjabi language of Matriculation standard or
will have to qualify a test conducted by the Language Wing of the Department of Education of
Punjab Govt. within six months from the date of appointment.
Provided further that where educational qualification for a post in any service are lower than
Matriculation then knowledge of Punjabi language shall also be lowered accordingly.
5. Mode of appointment:
The appointment to the various posts shall be made in the following manner:1. By Direct Recruitment:
The qualifications for direct recruitment shall be such as specified in Annexure-I

The appointment shall be made according to the merit list drawn at the time of selection.
2. By Promotion:- Appointment by promotion to the next higher post in the respective discipline
in any category shall be made on the basis of Seniority-cum-Merit from amongst the employees
working in the lower category having atleast five years service on the said post in Milkfed.
Promotion shall be made as per Punjab Govt. instructions & parameters prescribed from time to
time.
3. By Transfer on Deputation:- By transfer of a person on deputation from any department of
Government.
4. The quota of appointment by direct recruitment and by promotion shall be in the ratio of 40:60
respectively. The appointment by transfer on deputation shall be treated against the quota of
direct recruitment. In case no suitable employee is available for appointment against the
promotion quota, in that case, it shall be open to the Appointing Authority to fill up the said post
by direct recruitment.
The mode of direct recruitment applicable to a post shall be regulated as under :As and when any vacancy arises for the purpose of direct recruitment, the vacancy shall be filled
up :(i) Calling applications through the mode of limited circulation from the candidates eligible
within the organisation. If the suitable and sufficient candidates are not available within the
organisation, then the applications from suitable candidates in the similarly substituted sister cooperative organisations should be called and in case suitable and sufficient number of candidates
are not available in similarly substituted sister organisations then the applications shall be called
from other co-operative organisations in the State.
(ii) If sufficient and suitable candidates do not become available by following the method in sub
rule 5.4 (i) above then the applications may be called from the open market.
(iii) Technical posts meant for direct recruitment such as Foreman/Mechanics (Junior Mechanic
level)/Operators can be filled up through campus interview. The post of Foreman shall be filled
up from Polytechnics run or recognized by Punjab Govt. & UT Administration and for
Jr.Mechanics and Operators from ITIs run or recognized by Punjab Govt. or UT Admn.
preferably nearest to the place of recruitment.
5. The reservation for the members of Scheduled Castes/Scheduled Tribes and Backward Classes
in direct recruitment and promotion shall be in accordance with the Punjab Govt policy as may
be enforced from time to time.
6. COMMENCEMENT OF SERVICE
Service shall be deemed to have commenced from the working day on which the employee
reports for duty. If he reports for duty in the Afternoon, the service shall be deemed to have
commenced from the following date.
7. ATTENDANCE AND LATE COMING
(1) No employee shall enter or leave the premises of the establishment except by gate or gates
meant for this purpose.
(2)An employee who is off his duty or has resigned, or has been discharged or declared by the
Competent Medical Authority to be suffering from any contagious or infectious disease shall
immediately leave the premises of the establishment and shall not enter any part of it except with
the express permission of the competent authority.
(3) All employees shall be liable to be searched both at the time of entry and exist at the main
entrance of the establishment by a person of the same sex with due dignity, who may be
authorised by the competent authority in this behalf.
(4) If more than one shift is working, the employee shall be liable to be transferred from one shift
to another.
(5) If an employee reports late by more than 10.minutes without any satisfactory reason, he may
not be permitted to enter his department or to commence work. The competent authority at his
discretion may permit any employee who is late by more than 10 minutes, to resume work
subject to deduction of wages for the late attendance besides any other action.
8. PROBATION
(i) A person appointed to any post in the service by direct recruitment or by promotion shall be
on probation. The initial probation period shall be six months, which may be extended further at
the discretion of the appointing authority. The maximum probation period shall not in any case
exceed one year.
(ii) The services of a direct appointee while on probation shall be liable to be terminated without
any notice, compensation and assigning any reason, in case his work or conduct during probation
period is not found satisfactory. A promotee while on probation shall be liable to be reverted to
his original post in case his work or conduct is not found satisfactory during probation.
(iii) Upon satisfactory completion of probation period, the service of the employee shall be
regularised.
9. SENIORITY
The seniority of an employee under these rules shall be determined in a particular category of
post on the basis of his length of service on that post, provided that in case of direct appointment,
if the date of joining of two more employees is the same, the seniority in their cases shall be
determined with reference to their date of birth, the older being senior to the younger. If in such a
case the date of birth is the same the seniority shall be determined on the basis of first alphabet of
their name. In case the date of joining of a direct appointee and a promotee is the same, the
promotee shall rank senior to the direct appointee.
Provided further that seniority of PDDC employees on their absorption in Milkfed vis-a-vis other
employees of Milkfed shall be determined in the following manner:(a) An employee who was working in the higher pay scale at the time of absorption shall rank
senior to the employee working in the lower pay scale on that date.
(b) In case where the pay scale of the post held by an employee in the PDDC and of the post
against which he has been absorbed in Milkfed is identical the seniority shall be determined on
the basis of his length of service in the same pay scale in the PDDC and Milkfed as the case may
be.
10. POSTING AND TRANSFERS
The appointment to the various posts shall be made in the following manner:1. The Managing Director shall be competent to post/transfer any employee at the Headquarter
of Milkfed or at any other plant/ Farm/Project/Branch Office owned or controlled by Milkfed.
He shall also be competent to transfer an employee against any equivalent post or alongwith
post.
2. The General Manager/ Manager/ Incharge of a Plant /Farm/ Project of Milked shall be
competent to transfer any employee from one section/ station to other section/station within the
working jurisdiction of the Plant/Farm/Project.
3. Where it is considered necessary in the interest of work an employee may temporarily be
transferred by the M.D., Milkfed to any of the Distt. Cooperative Milk Producer's Union
affiliated to Milkfed, Punjab.
11. DEPUTATION
An employee of Milkfed can be sent on deputation to any State level Coop.Apex institution or
Govt Undertaking/ sister Milk Unions and vice versa in the interest of work on receipt of written
requisition from the concerned institution / Govt Undertaking and with his consent, without any
payment of deputation allowance on the terms and conditions as may be decided by Milkfed with
the prior approval of RCS, Pb. only.
12. JOINING
1. Joining time may be granted to an employee to enable him to join a post at a new station on
relinquishing charge of his post after his transfer.
2. Joining time admissible to en employee shall be 6 days plus actual number of days spent in
travelling. However, the transferring authority may reduce the joining time in case of any
employee in the interest of work.
13. SECURITY:
An employee of Milkfed shall furnish such security fidelity guarantee, agreement bond in favour
of Milkfed as may be decided by the Board of Directors from time to time.
14. PAY AND ALLOWANCES
1. Except as provided otherwise in these rules, an employee appointed to a post shall be allowed
to draw the basic pay at the minimum of the pay scale of the post to which he is appointed.
Provided that Managing Director may in special cases allow higher initial basic pay for reasons
of higher qualifications or better experience of the employee with the approval of RCS Pb. in all
such cases.
2. If an employee is promoted from a post in a lower category to a post in higher category, his
initial basic pay in the pay scale of higher post shall be fixed at the stage next above the basic
pay, he was getting in the pay scale of the lower post. In case, the pay so allowed is less than the
minimum of the pay scale of higher post then he shall be allowed the basic pay at the minimum
of the pay scale of the higher post.
3. The annual increment in the pay scale shall accrue normally to an employee after he has
completed one year's service at a stage in the pay scale unless it has been withheld for reasons of
unsatisfactory work or conduct by the appointing authority or any other officer authorised to
sanction annual increment. The competent authority may withhold the annual increment
provisionally in case where any charges with regard to the unsatisfactory work or conduct are
under investigation
4. The following period shall count for computing the period of one year for the purpose of grant
of annual increment:
Period of duty on the post.

Period of all kinds of leave which is sanctioned with wages.
Period of suspension in case it is treated as duty period.
5. The annual increment above the efficiency bar stage in the pay scale shall not be allowed to an
employee without the specific sanction of the competent authority i.e. appointing authority.
6. The annual increment shall be allowed to an employee from the first day of the month in
which it falls due.
15. TRAVELLING ALLOWANCE
Traveling allowance shall be admissible to an employee according to the TA/DA
Rules/Instructions of the Milkfed as may be in force from time to time.
16. PROVIDENT FUND
The employees shall be entitled to the benefits of Contributory Provident Fund as Provided in the
Employees Provident Fund Act, 1952 and the scheme framed thereunder.
17. BONUS
The employees shall be entitled for Bonus in accordance with the provisions of Bonus Act,1965
as modified from time to time.
18. TRAINING
The Managing Director may depute an employee in the service of Milkfed to undergo a course or
training. If an employee is deputed for a course / training within the country for a period
exceeding three months or is deputed for training abroad for any period, he shall execute a bond
to serve the Milkfed for atleast three years after the completion of such training/course. failing
which the concerned employee shall be liable to pay all expenses which were incurred by the
Milkfed towards his training. The bond in question shall be executed by the employee before
proceeding on training/ course.
19. LEAVE
The following kinds of leave shall be admissible to the employees:
1. P.Leave: One day for every 18 days of service (for the purpose of calculation of days of
service the period of P.Leave availed & leave without wages shall not be counted).
2. Casual Leave: 12 days per annum.

3. Sick Leave:
a) 14 days per annum to those employees who are not covered by the ESI Act/Scheme.
b) 7 days per annum to those employees who are covered by the ESI Act/Scheme.
4. National/Festival Holidays: 11 days per annum as may be notified by Milkfed.
5. Leave without wages: Leave without wages may be granted to an employee at the discretion
of the competent authority when no other kind of leave is admissible to him under the Rules.
6. During the period of P.Leave the employee shall be paid salary at the rate admissible to him
on the day proceeding the date of commencement of leave.
7. Maternity Leave Maternity leave and other Maternity benefits shall be admissible to the
female employees at the following scale:a) To the employee covered under the ESI Scheme as per provisions of ESI Act,1948.
b) To the employees not covered under the ESI Act/Scheme, as per provisions of Maternity
Benefit Act, 1961.
8. Accumulation of P.Leave shall not be more than 300 days subject to other conditions for the
grant of such leave as laid-down in Factories Act,1948 as amended from time to time.
9. Encashment of P.Leave upto a maximum of 30 days shall be allowed if the employee is
discharged or dismissed from service or quits his employment whereas encashment of earned
leave upto a maximum of 300 days shall be allowed on superannuation as the case may be
provided the balance of P.Leave upto this extent is at his credit at that time. (for the purpose of
calculation of days of service the period of P.Leave availed & leave without wages shall not be
counted).
20. HOME TRAVEL CONCESSION
The employees shall be entitled to Home Travel Concession as per Punjab Govt. Rules in force
from time to time.
21. MEDICAL BENEFITS
The employees covered under ESI Act/Scheme shall get medical benefits as provided under the
ESI Act,1948/scheme. The employees not covered under the ESI Act shall be entitled to medical
benefits/reimbursement as per Pb.Govt instructions from time to time.
22 ALLOWANCE
DA/HRA/CCA and other compensatory allowance shall be admissible to the employees of
Milkfed as admissible to the employees of Pb.Govt from time to time.
23. Gratuity
All the employees of the Milkfed irrespective of the posts held and salary drawn by them shall be
entitled to gratuity as per the provisions contained in the Payment of Gratuity Act,1972 as may
be amended from time to time w.e.f. 24.5.94.
Provided that the gratuity payable to an employee against whom disciplinary/criminal
proceedings are in process and pending on the date of his/her retirement, shall be withheld till
completion of disciplinary/criminal proceedings & the matter regarding its payment shall be
decided on the basis of final outcome of such disciplinary/criminal proceedings.
24. Ex-gratia payment in the event of death of the employee during service
In case of death of an employee while in service of Milkfed, the following benefits/facilities will
be admissible according to the Punjab Govt. policy, to the family members of the deceased
employees as may be in force from time to time:a. Ex-gratia Grant.
b. Payment of House Rent Allowance.
c. Encashment of P.Leave at the credit of the deceased employee on the date of his /her death
subject to maximum of 300 days.
d. Priority for employment of widow/ dependent of deceased employee
25. RESIGNATION
1. After the successful completion of probation period if any employee wants to leave the service
of the Milkfed by tendering resignation, he shall have to give one month's notice in writing,
otherwise he shall have to deposit one month's salary or salary for the period by which the notice
falls short of one month. (For this purpose the salary will include basic pay plus all other
allowances admissible thereon).
2. 24 hours notice shall be required for tendering resignation during probation period. If an
employee has executed the agreement bond for serving Milkfed for a specified period, 24 hours
notice shall be required for tendering resignation during probation period and in addition he shall
also be required to deposit the amount as payable by him to the Milkfed according to the
conditions of the agreement bond.
3. The resignation tendered by the employee may be accepted by the appointing authority. In any
special case, for the reasons to be recorded in writing, the appointing authority may waive off the
condition of one month notice period or for the period by which notice falls short.
26. RETIREMENT
1. Every employee of Milkfed shall retire on attaining the age of 58 years. Provided that in the
case of pendency of any criminal or disciplinary proceedings against any employee on the date
of attaining the age of 58 years such proceedings shall continue beyond the said date of
superannuation and he or she shall be subject to decision thereof.
Provided that the disciplinary proceedings going on against an employee at the time of retirement
shall be completed preferably within a period of six months from the date of retirement.
Provided further that the disciplinary proceedings can be initiated even after the retirement of an
employee on superanuation in respect of a cause of action, which arose or an event that took
place within a period of four years prior to the retirement or after the completion of
redeployment.
2. Notwithstanding anything contained in Rule 26.1 above, any employee may be permitted at
his own request to retire from the service of Milkfed on attaining the age of 50 years or after 20
years of service at any time by the appointing authority provided that three months notice in
writing shall be required to be given by the employee in this regard provided further that where
the three months notice is not given by an employee or it fall short of three months, the employee
shall be required to deposit salary in lieu thereof.
3. Notwithstanding anything contained in Rule 26.1 and 26.2 above, the appointing authority
shall, if it is of the opinion that it is in the interest of Milkfed to do so, have the absolute right, by
giving an employee prior notice of three months in writing to retire that employee on the date on
which he completes 20 years of service or attains 50 years of age or any date thereafter to be
specified in the notice.
27. TERMINATION OF SERVICE

The appointing authority may terminate the services of an employee by giving him one month
notice in writing or wages in lieu thereof in the following cases:(i) where the concerned employee has been declared by the Govt. as a traitor.
(ii) where the concerned employee is likely to jeopardize the safety of the establishment.
(iii) where the concerned employee has been declared unfit for performing his duties on account
of any physical or mental deficiency or serious defect in eye-sight or hearing. Such defects
should be certified by the Chief Medical Officer of the District in which the concerned employee
is posted.
(iv) The service of an employee can also be terminated on account of mis-conduct, as provided
under Rule-29 of these rules.
28 MISCONDUCTS AND PUNISHMENTS
1. An employee alleged to have committed mis-conduct (s) shall be liable to be proceeded
against in accordance with the procedure specified herein after:2. Mis-conducts: Misconduct shall mean an act of commission or omission of duty or warranty,
expressed or implied, custom or usage, whether specified herein or otherwise, either singly or in
collaboration with others, whether amounting to a substantial act, abetment or connivance,
committed within the premises of the establishment or outside the premises if related to the
maintenance of discipline or to the business of the establishment etc provided instances
mentioned herein shall not be regarded as exhaustive but illustrative only. Mis-conduct is
classified into two categories i.e.Major mis-conduct and Minor misconduct as under:3. MAJOR MIS-CONDUCTS: " Without prejudice to the general meaning of the Misconduct", the following acts or omissions on the part of an employee shall amount to major misconduct:1. Conviction by a court of law for an offence involving moral turpitude.
2. Theft, fraud, misappropriation, embezzlement, dishonesty in connection with the business
or property of the establishment.
3. Committing theft of property of any employees within the remises of the establishment.
4. Taking or giving any illegal gratification.
5. Insubordination or disobedience, whether alone or in combination with others, to any
lawful and reasonable orders of superiors.
6. Gambling within the premises of the establishment.
7. Drunkenness or intoxication while on duty or outside in connection with the affairs of the
establishment, fighting, threatening, abusing, intimidating or assaulting any superior or a
co-worker or riotous or disorderly or indecent behavior within the premises of the
establishment or outside in connection with the affairs of the establishment.
8. Advancing or collection of money or distribution of propaganda leaflets or pasting of
notice in the premises of the establishment without the permission in writing of the
competent authority.
9. Doing private or personal work within the establishment during working hours.
10. Canvassing for trade union membership and or collection of Union's dues or holding of
any meeting within the premises of the establishment except as permitted by the
management.
11. Taking part or participation in a strike which is illegal or is in contravention of any law or
inciting or instigating other employees to take part or otherwise act in furtherance of such
a strike of the employees of the establishment.
12. Organising or participating in acts resulting in wrongful confinement or restraint of any
person within the premises of the establishment or outside.
13. Engaging in or inciting others to engage in slow tactics, slowing down work or union
activities within the establishment.
14. Damage or attempt to cause damage to the working process or to any other property of
the establishment or of the customer or of any employee of the establishment or wastage
of materials and stores etc.
15. Disclosing to any unauthorised person confidential information which may have come
into his possession during the course of his work in the establishment.
16. Habitual late attendance, habitual absence without leave or unauthorised absence from
duty for consecutive ten days or more than without permission.
NOTE: "Habitual" means committing of any act or misconduct more than once in a
period of one month.
17. Negligence or neglect of work.
18. Habitual of writing anonymous letters or making false complaints against any employee
of the establishment.
19. Failure to observe safety instructions or unauthorised removal of a guard, fencing or other
safety notice installed in the premises of the establishment of any act or behavior which is
likely to cause injury or has to any person or endanger the life or safety of such a person.
20. Sleeping on duty.
21. Refusal to offer himself for interrogation by the personnel Department/management or
refusal to accept any communication or charge-sheet issued by the management.
22. Refusal to work on another job of same status or on any other machine when ordered
provided the employee can handle the machine with a little training easily.
23. Leaving place of duty without permission during working hours.
24. Habitual breach of rules or instructions of the management or any where within the
premises of the establishment inciting others to commit breaches of law or rules of the
establishment or the commission of any other act intended to harm the interests of the
establishment, or its employees.
25. Material mis-statement made on employment proposal form and on other service records
or refusal to give and or to sign the statement made before any officer of the
establishment. Refusal to get service book and other documents prepared when called
upon to do so by the management and failure to furnish any other information pertaining
to service matters.
26. Unauthorised possession of any lethal weapon with the premises of the establishment or
unauthorised entry into or stay in the premises of the establishment.
27. Wilful falsification, defacement, tampering with or destruction or any of the records of
the establishment.
28. Acting in any manner against an agreement or award under the Industrial Disputes
Act,1947 during the currency of the agreement/award or becoming habitual of
contravention of these orders or any other act of misconduct as mentioned in these rules.
29. Causing of financial loss to the establishment in any manner.
30. Abetment and or attempt to commit any of the acts of mis-conduct.
31. Any other act subversive of discipline.
32. Habitual commission of any minor misconduct.

33. "Sexual harassment of women in any form at work place by any male employee." For this
purpose, sexual harassment includes such unwelcome sexually determined behavior
(whether directly or by implication) as:
a) Physical contact and advances;
b) demand or request for sexual favours;
c) sexually coloured remarks;
d) showing pornography;
e) any other unwelcome physical verbal or non verbal conduct of sexual nature.
4. MINOR MIS-CONDUCTS: The following acts on the part of an employee shall amount to
minor mis-conducts:1. Occasional late or irregular attendance.
2. Absence from duty without leave for any period less then 10 days.
3. Over staying sanctioned leave without sufficient justification for any period less than 10
days.
4. Smoking within the premises of the Establishment.
5. Leaving one's headquarters without permission and to obtain leave by mentioning false
reasons.
6. writing of anonymous letters or making false complaints against any employee/officer of
the establishment.
7. Failure to show consideration or attention to officers, customers or other employees of
the establishment or unseemly behaviour while on duty.
8. Non-wearing of uniform or non-production of attendance card/leave card/identity card
while duty.
29. PUNISHMENTS FOR MAJOR MISCONDUCTS
In the matter of Discipline, Punishment and Appeal, the Punjab Civil Services (Punishment &
these rules.
30. PUNISHMENTS FOR MINOR MISCONDUCTS
these rules.
31. PROCEDURE FOR AWARDING PUNISHMENTS FOR ACTS OF MINOR CONDUCTS.
Where an allegation of minor misconduct is alleged against an employee,he shall be called upon
to explain his position. He shall be given seven days time to submit his explanation. When an
employee refuses to accept the show cause notice issued to him or fails to explain his position in
writing within seven days time or when the explanation submitted by the employee is found to be
unsatisfactory, after consideration by the management, the management may pass orders and
inflict the punishments enumerated in these rules and no enquiry shall be required to be
conducted before inflicting the punishment. In case, the explanation furnished by the employee is
found satisfactory, the matter would be dropped.
32. PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR MISCONDUCT

these rules.
(a) In the matter of discipline, punishment and appeal, the Punjab Civil Services (Punishment
and Appeal) Rules, 1970 as amended from time to time shall apply to the employees covered
under these rules. However, inquiring authority to be appointed for holding inquiry shall include
retired judicial officers in addition to retired Punjab Govt. Officers.
(b) Managing Director, Milkfed shall be competent authority to impose major and minor
penalties as provided in Rule 5 of the Punjab Civil Services (Punishment and Appeal) Rules,
1970 as amended from time to time, to all the employees covered under these rules.
33. METHOD OF SERVICE
In case an employee refuses to accept or evades any communication under these rules, when
offered to him by hand, such a communication shall be sent to him by registered post at his last
known address and a copy of the same put up on the notice board and this shall be deemed to be
sufficient service on him.
34. EX-PARTE PROCEEDINGS
If the accused employee refuses to avoids or neglects to receive the charge-sheet/notice or to
submit his explanation in time or to appear before the Enquiry Officer, it shall be open to the
appointing authority or the Enquiry Officer to proceed ex-parte.
35. DISCIPLINARY PROCEEDINGS DURING THE PENDENCY OF CRIMINAL
PROCEEDINGS
It shall be open to the competent authority to initiate disciplinary proceedings under these rules
against an employee even during the period when the criminal case on more or less similar or
same allegations is pending against him or even after the acquittal of the employee in such
criminal proceedings.
36 CONSEQUENCES OF AN EMPLOYEE FOUND GUILTY
If, as a result of the enquiry, the employee has been found guilty of the charge(s), the appointing
authority may pass orders, awarding punishment to the employee. The appointing authority shall
also decide whether the employee should be paid any thing more than the subsistence allowance
already paid to him.
37. CONSEQUENCES OF AN EMPLOYEE FOUND NOT GUILTY.
If, as a result of an enquiry, the employee has been found not guilty of the charge (s), he shall be
deemed to have been on duty during the period of suspension and shall be entitled to the same
wages as he would have received if he had not been suspended.
38. MATTERS TO BE CONSIDERED IN AWARDING PUNISHMENT.
An awarding punishment under these rules, the appointing authority shall take into account the
gravity of the mis-conduct, the previous record, if any, of the employee and any extenuating or
aggravating circumstances that may exist.
39. IRREGULARITY NOT TO EFFECT ORDER.

Any irregularity in the issue of the charge-sheet or holding of enquiry shall not vitiate the
ultimate order passed or made by the appointing authority unless such an irregularity has resulted
in the miscarriage of justice.
40. SUSPENSION
In a case where it is considered proper that the employee be suspended pending enquiry, the
appointing authority may suspend the employee pending his explanation or subsequent domestic
enquiry or till the final orders are passed on the enquiry case. Where criminal proceedings
against an employee in respect of any offence involving moral turpitude are pending and the
appointing authority is satisfied that it is necessary or desirable to place the employee under
suspension the appointing authority may by an order in writing suspend the employee with effect
from such date as may be specified in the order. The suspended employee will be issued a
charge-sheet within a period of one month from the date of suspension. An employee placed
under suspension shall not leave his headquarters without permission in writing, of the
competent authority. The suspended employee shall report to office , during suspension, as and
when required by the competent authority so that official communications if any, are delivered to
him.
41. SUBSISTENCE ALLOWANCE
An employee, who is placed under suspension will be paid subsistence allowance at the rate of
50% of his basic pay at the time of suspension plus allowances thereon. The payment of
subsistence allowance will be made subject to the condition of his not taking up any other
employment or self employment during the period of his suspension and also subject to his
remaining at his headquarters. However, no subsistence allowance shall be paid to an employee
for the period he causes deliberate delay in the completion of enquiry proceedings.
42. APPEAL AGAINST PUNISHMENT
An appeal against the orders of the General Manager/Manager/ Incharge imposing punishment
under Rules 29 & 30 of the Rules shall lie to the Managing Director, Milkfed and where such
orders of punishment have been passed by the Managing Director, Milkfed, the appeal shall lie
to the Board of Directors of Milkfed within 45 days of the communication of the orders to
him/her.
43. INTERPRETATION OF THESE RULES.
If any doubt arises at any time with regard to the interpretation of these rules, the matter shall be
referred to the Registrar, Cooperative Socs. Punjab whose decision shall be final.
Name/tittle of
Purchase Manual
Purchase procedure
The document


These documents define the procedures which control the purchase of material.
Address:
SCO 153-55, Sec-34, Chd.
Ph. No:-5041812-815
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Fax:5041856
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Others:
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Fee charged by the department for a copy of rules, : As per Manual 17 of this book. Regulations,
instructions, manual and records (If any)
Pucrhase Munual is as under:1. Federation :
Means the Milkfed & its field Offices/Units.
2. The words used in singular number also includes their plural.
3. COMPETENT AUTHORITY :
Means the BOD /Managing Director, Milkfed (Pb.)/BOD/General Manager of Milk
Unions/Mllkfed Units.
4. PURCHASE COMMITTEE
Where it is not possible to obtain competitive tenders /quotations or to lay down comprehensive
& complete specifications or material is required in emergency, purchase may he made by the
following purchase committee approved by the competent authority from time to time.
A. For Purchases upto Rs.1,00,000/(i) Representative from Purchase Section.
(ii) Representative from Accounts Section.
(iii) Representative from the End User department.
However representative of each section will not be below the rank of Dy Manager or
Officiating lncharge of the Section.
B. For Purchases exceeding Rs. 1,00,000/- and upto Rs.5,00,000/-Purchase Committee shall comprise of the following :(i) MD of the Federation or his Nominee/G.M. of the Plant/Union
(ii) Nominee of RCS

(iii) Manager/Dy Manager (Purchase)
(iv) Manager/Dy Manager (Acctts.)
(v) Manager / Dy.Manager of End User Department.
However quorum of the committee shall be minimum of three members and out of three
RCS nominee or MD of the Federation or his Nominee / G. M. of the Plant/Union shall
one of them.
C. For Purchases exceeding Rs.5,00,000
Purchase Committee shall comprise of the following:(i) Chairman of respective BOD (Chairman of the Committee)
(ii) One Director of the respective BOD.
(iii) Other members will remain the same as at (b) above.
However quorum of the committee shall he minimum of four members but
chairman/RCS nominee shall be one of them.
5. RISK PURCHASE :
Means purchase made at the risk, cost and responsibility of the defaulting supplier.
6. PENALTY:
Means deductions imposed on the suppliers bill on account of delayed supplies or defective
quality of material received.
7. INTEREST:
Means the interest at the bank rate prevailing at that time.
8. UNION:
Means the District Cooperative Milk Producer's Union Limited.
9. UNIT:
Means Plants owned by Milkfed (Pb.)
10. SEALED COVER:
Means properly closed cover / envelop.
OBJECTIVES OF PURCHASE POLICY
The Milkfed (Pb.) purchase policy is to ensure that:
(a) the material / equipment / ingredients are of right quality and quantity to meet the
requirements of different Milk Unions/Milkfed Units.
(b) a steady flow of material is maintained to match the production schedules of different Milk
Unions.
(c) suppliers of material are evaluated and enlisted on the basis of their ability to meet Mllkfed
requirements.
(d) purchased material shall be competitive in Price and delivery in time.
(e) as far as possible purchased materiel should help sustainable development.

(f) E.0.0. in order to avoid blockage of funds and higher inventory carrying cost.
(g) To endeavour to avoid multiplication, waste/obsolescence and undesirable stocks procuring.
1. CENTRALISED PURCHASES :
1.1 A uniform policy for the Centralized purchases of various items/material commonly
required in day to day working at Plants and other Units of Federation to carry out their
commercial activities and also the Plant and Machinery/spare parts etc. considered economical
and purchased in large quantities have been found prudent to effect economy and ensure
quality in the purchasing process viz economy in advertisement, evaluations of suppliers and
moreover, introduction of uniform procedures for purchases throughout the Milkfed, as
quantity of material is substantial, it attracts reputed suppliers to compete and also provides
Milkfed a better bargaining power.
1.2 CentraIiza1ion of purchase of items which are commonly used by all the affiliated Milk
Plants/Unions such as packaging material. Machinery & other stores material etc. at Milkfed
(Pb] Head Office level as authorised by the concerned BOD of the Milk Union. The list of such
items is given int Annexure-1. However. any addition/deletion in the list shall be done by
mutual consent of the Milkfed (Pb) and affiliated Milk Unions/Plants from time to lime.
1.3 Once the modalities of purchase are finalized, the purchase of rate contract Items may be
made against delivery schedules which shall he provided by the Milkfed/Milk Unions/plants on
thc basis of indents received from different Milk Unions/PIants to the extent of their actual
requirement.
1.4 Rates, terms and conditions of the rate contracts/orders entered into / placed by the Milkfed
(Pb) shall normally be binding on affiliated Milk Unions/Milkfed/Milk Unions/Plants/Units
until and unless explicit prior approval of Managing Director, Milkfed (Pb) is obtained for any
deviation from the agreement of Milkfed after giving complete justification.
1.5 The items of small value like consumable, spare parts, chemicals, fuel etc. etc. shall be
purchased at the Plant/Union level.
2. DIRECT PROCUREMENT OF GOODS BOTH CAPITAL & CONSUMABLE:
2.1 The goods available on the rate contract of D.G.S it D, Director Supplies and disposal to
the Puniab Govt. State/Central Govt. department/Undertakings/Cooperative institution etc. and
National Dairy Development Board and Its subsidiary Units may be purchased without inviting
tenders/quotations.
2.2 The goods from approved sources such as Weavco, PUNCOFED, PUNSUR, Khadl Board,
Jails, Punjab State Small industrial and Export Corporation, Co-operative Stores, Super Bazar
or any State/Central Govt. Agency/Cooperative Institutions etc. may be purchased without
Inviting quotation.
2.3 Good(s) of proprietory nature may be purchased from the manufacturer/Distributor and
after obtaining a certificate that the supplier is the manufacturer /Dlstributor in the
country/Region and rates quoted/charged are at par with those approved by the D.G.S & D or
the same rates are quoted to other Govt./Semi Govt. Department/ Co-operative institutions.
2.4 The parts for different type of machinery/ vehicles may normally be purchased directly
from the original manufacturer or his authorized distributor with admissible discounts without
resorting to Inviting quotations after obtaining certificate that rates charged quoted are the
same as are charged/quoted to other Govt./Semi Govt./ Apex Bodies. In case there are more
than one authorized dealers or same manufacturers product in the same city, maximum
discount he settled after contacting all such authorized dealers periodically.
2.5 Fuel items like HSD, Petrol, LDD, FIFO, FD, oils and lubricants and coal etc. may he
purchased by the Plants/Milk Unions at their own to the extent of their actual requirement
directly from the approved agencies like IOCL/BPCL/HPCL Coal India Limited, Sponsored
Coat etc. without inviting tenders / quotations. Cement & Steel may be purchased from SAIL
& Cement Corporation of India Ltd. respectively.
3 INVITIG OF TENDERS/QUOTATIONS:
3.1 Tenders/quotations may be invited with the approval of the competent authority as under:
(A) Good's costing Rs.1000/- and below at a time may be purchased without quotations
provided one time requirement received from the lndentor is not of more than Rs.1000/-.
However person purchasing goods will ensure reasonability of rates consistent with quality.
The total requirement may be assessed for future use and there should not be the tendency to
split the supply order.
(B) (i) Good's costing between Rs.1000/- to Rs.5000/- may be purchased by calling Sealed
quotations either by post or collecting sealed quotations personally by the Purchase/End User
Department.
(ii) Goods exceeding Rs.5000/- and upto 1.00 lac may he purchased by calling sealed
quotations by post. However, in emergency, the quotations can he collected by Purchase
Committee personally with prior approval of Competent Authority.
(C) Goods exceeding rupees One Lac shall be purchased by inviting sealed tenders (SEE
ANNEXUI-2) through an Advertisement in at least two leading Newspapers one in English &
other in vernacular paper in addition depicting the Tender Notice on Milkfed Website. The
copies of notice inviting tenders may also be simultaneously forwarded to the
manufacturers/suppliers registered with the Federation/ Unions.
NOTE: HOWEVER ABOVE FINANCIAL LIMITS FOR MAKING PURCHASES (A
TO C} MAY BE REVISED/REVIEWED BY THE BOARD OF DIRECTORS,
MILKFED PERIODICALLY WITH PRIOR APPROVAL OF RCS (Pb), CHD.
(D) The validity period of tenders/quotations shall invariably be indicated in the notice inviting
tenders/quotations.
(E) The conditions given under [B} & {C) may be relaxed by MD, Milkfed, Punjab in case of
break down & consequential urgency of spares/services/inputs where
production/operation/business are likely to suffer and in that case purchase may be effected by
the Purchase Committee.
(F) Tenders/quotations be invited by giving detailed specifications of the Items and terms &
conditions of purchase and particularly the following:
(i) Description of material.
(ii) Complete Specifications.
(iii) Qty. required.
(iv) Packing required.
(v) Time of supply.
(vi) Earnest money required with the tender / offer.
(vii) Security, if any, to be deducted out of supply bills.
(viii) When EMD/Security is to be refunded.
(ix) Jurisdiction for Dispute Settlement.

(x) Payment term.
However points at Sr.No (iii) and (v) above shall not be applicable in the case of centrally
purchased items by Milkfed Head Office on annual rate contract basis.
(G) EARNEST MONEY: Please refer clause 13.2 (a) & (b).
4. MINIMUM NUMBER OF TENDERS/QUOTATIONS
4.1 RELAXATION OF TENDER CONDITIONS: Generally There must be at least three
tenders/quotations for making decision for any purchase exceeding Rs.1000/-. However this
requirement may be relaxed by the competent authority under special circumstances depending
upon the urgency/nature/availability of the item.
4.2 REINVITING OF TENDERS : In case competent authority feels that response of Tender is
inadequate or rates are not reasonable i.e. either too high or too low and not workable, and that
re-inviting tenders shall be in the interest of MiIkfed/Milk Unions. Tenders may be re-invited
through Press.
5. RECEIPT OF TENDERS
All tenders/quotations received by post or delivered by the tenderers/parties by hand, may be
entered in the Central Diary of Mllkfed/Milk Plant. The recipient after affixing stamp and
Indicating Diary Number will then send the tenders to the concerned Department where tenders
shall be entered in the tender Register maintained for the purpose and shall be opened on the
fixed date and time. Tenders received alter due date and time may not be considered at all and
may be returned to the respective tenderers as it is / unopened under registered cover. However,
tenders posted well before due date, but received alter the due date & time because of postal
delay or break down of communications but before opening of the tenders, shall be termed as
delayed tenders, however. shall also be treated at par with in time tenders. Tender received open
i.e. by FAX , E.Mail, MODEM, any other electronic media etc. will not he considered.
6. OPENING OF TENDER:
6.1 The tenders so received in time shall be opened by the purchase committee formed by the
competent authority in the presence of parties whosoever are present. This committee will sign
each page of the tender opened and attest the cuttings, overwriting. additions etc. If any therein.
The tender may be opened on the date and time fixed in the tender/quotation. All the officers of
the tenders opening committee will affix their signatures in the tender register, where all
tenders/quotations received from Diary Section has been entered. The signatures of the tenderers
or their representative present at the opening of the tender, shall also be obtained on the register.
6.2 The rates of valid tenders, which is accompanied with requisite amount of EMD may be read
out before the tenderers or their representatives and those of invalid tenders i.e. which are
without EMD, may not be considered / read out.
6.3 The envelopes in which the tenders/quotations are received should be kept along with the
tender.
7. PROCESSING OF TENDERS:
7.1 The Purchase/Concerned Department shall then prepare the comparative statement and mark
the lowest rates with red ink. The comparative statement should be prepared on free delivery at
Plant Prices basis and inclusive of all taxes and duties in case of bulk purchases.
7.2 Normally the lowest tenderer should be invariably considered, if the, tenderer has technically
accepted the specifications, the term of payment and delivery period and the specifications
quoted by the tenderer are as per tender documents.
7.3 (i) For recommending the tender other than the lowest, the reason for not accepting the
lowest tender be mentioned with complete justification. Alter processing the tenders by the
concerned department, the order/rate Contract be given/awarded to the approved tenderer alter
getting approval of the competent authority
(ii) Such orders / rate contracts shall be signed either by the competent authority himself or any
other officer authorized by the competent authority, to do so, on this behalf.
(iii) All orders / rate contracts shall be addressed to the approved tenderers/suppliers and copies
of the same shall be sent to Milk Unions / Milkfed Units / Department concerned and Accounts
Department.
7.4 Annual Plate contract should preferably be awarded to two or more parties depending on the
total consumption of the item, to meet any eventuality in case of failure to deliver goods by the
single rate contract party.
7.5 In case, the lowest rates are reasonable and also according to the laid down specifications and
terms and conditions, the annual contract be awarded/recommended in favour of that party.
For more suppliers confirmation may be sought from second, third and fourth lowest tenderers
(depending upon the number of suppliers to be kept on approved panel) for bringing their rates as
well as terms and conditions at par with the lowest tenderer. In case they agree to it, Regular
parallel rate contracts be awarded otherwise remaining lowest parties be asked to reduce their
rate to match the lowest one. till 2-3 rate contract suppliers are kept on approved penal
depending upon the nature of item's. In case no other tenderer, match the lowest rates, even then
more parties be kept on regular rata contract to meet any sort of eventuality, may be a regular or
Risk Purchase parties depending upon critical nature of item and urgency of item or any other
such exigency as considered appropriate by the competent authority.
7.6 ln case of vital Items, like Film, Tin Containers etc. when the lowest tendered rates quoted by
some new manufacturer/supplier whose performance is not certified or party is not approved by
lS0/BIS/Ag-Mark authorities etc. the factory premises of such suppliers may be inspected by
sub-committee comprising technical experts of Production/Quality/Engineering Departments
from Milkfed / Milk Unions with Purchase or Accounts Representative. On the
recommendations of this sub-committee regular/trial order be placed with the party and later-on
Trial Order may be converted into a regular order, after getting satisfactory performance/quality
report from the consignee union(s).
7.7 Placement of Order(s)/ Schedule(s) : Following procedure/criteria shall be adopted for
placement of order/schedules to different rate contract suppliers by the consignee Milk Unions /
Plants :1. Where two suppliers are approved after rate matching:
(i) Ist lowest quotee : 60% of total volume
(ii) 2nd lowest quotee : 40% of total volume
2. Where three suppliers are approved after rate matching:
(i) Minimum 40% to the lowest quotee.
(ii} 30% each (Maximum} to the 2nd and 3rd lowest quotee
In case of any deviation, consignee(s) should seek permission from Managing Director, Milkfed
to alter above criteria of ratio by providing detailed / complete justification.
8. EMERGENCY PURCHASES:
In case of critical and essential Items where the management feel that there is no sufficient time
available to invite tenders/quotations and the non-availability of that item is likely to create crises
leading to production and consequential financial losses, same may be purchased by concerned
Purchase Committee. The committee may purchase the material from the market after collecting
at least three quotations.
9. LATE AND DELAYED RECEIPT OF TENDER:
9.1. LATE TENDERS:- Tenders received late shall not be entertained. No effort may be made
to accept/entertain a late tender on the ground of lower rates or any other reason whatsoever.
Late received offers be returned as it is/unopened to the respective parties under registered cover.
9.2. DELAYED TENDEFS : The tenders posted well before the due date but received late but
before opening of other tenders shall be termed as delayed Tender and treated at par with other
tenders.
9.3 ln case it is felt that tender have delayed due to festival rush, strikes, riots, floods, any natural
calamity etc. then date of receipt and opening of tender may be extended accordingly with the
approval of competent authority.
10. REVISED TENDER:
Revised tenders may not be considered, but it is felt that the rates quoted in time are on higher
side or otherwise not acceptable, fresh tenders may be invited. For this purpose the procedure
laid down for the receipt and opening of tenders may be adhered to.
11. TENDER DOCUMENTS:
11.1 Tender documents (in case of limited tenders / press tenders) containing specifications,
terms & conditions may be sent to the concerned / enlisted parties free of cost under U.P.C.
cover.
11.2 Tender forms can also be sold on cost basis, to be fixed by the competent authority, in case
of Press Tenders, if considered appropriate.
12. NOTICE PERIOD:
Normally, a minimum period of 20-30 days commencing from the date of publication of notice
inviting tenders/quotations in the Newspapers may be allowed to the tenderers to quote rates.
13. EARNEST HONEY:
13.1 In case of Press tenders, the earnest money may be about ONE percent of the value of the
goods tendered for. However in respect of items purchased through Annual Rate Contract, the
amount of earnest money may be fixed, keeping in view the past consumption of that item which
should not be less than 1 % in any case. The earnest money may be decided only on lumpsum
basis and be accepted in the form of bank draft.
13.2 (a) In case of tenders/quotations for items exceeding Rs,1,00.000.00 earnest money may be
1% subject to minimum of Rs.2000/-. However this can be relaxed if considered appropriate by
the competent authority depending upon the nature/availability/monopoly items.
(b) No EMD shall be taken from Govt./ Semi Govt./Cooperative Institution / Societies.
(c) In case of item's valuing less than Rs. 1.00.000.00 no earnest money may be asked for.
13.3 No exemption may be granted to any tenderer from the submission of earnest money as
mentioned in the tender document/quotation letter. However the competent authority is
empowered to waive-off this condition in case of suppliers/manufacturers of Monopoly Items.
13.4 The earnest money of un-succeesful tenderers may be returned to them within I5 days after
expiry of validity period of their offer/Tender .
13.5 No interest shall be allowed on earnest money deposit.
13.6 Tenderer whose earnest money is already lying with Milkfed/Milk Unions against previous
rate contracts due to any other reason will not be exempted for deposit of earnest money. Such
parties should deposit FRESH EARNEST MONEY.
14. SECURITY MONEY:
The earnest money of the succeessful tenderers may be convened into security. The security
money shall stand forfeited if the goods are not supplied in accordance with the prescribed
schedule, specifications and terms & conditions of the contract. The security money may be
refunded only alter the successful execution of the contract to the entire satisfaction of the
Federation/Unions on receipt of No Demands from the respective Unions.
15. POST TENDER NEGOTIATIONS:
15.1 Post Tender negotiations may he conducted only with the lowest L-1 and that too under
special circumstances after obtaining approval of the competent authority giving full
justification, when rates are found substantially on the higher side as compared to the purchase
rates of previous year / market rates.
15.2 Post Tender Negotiations of rate/other terms and conditions shell be conducted by the
committee including an officer each from the Purchase/Tender Inviting Department/Accounts
Departments and from Consuming Department as approved by the competent authority.
16. VALIDITY OF CONTRACT:
The contract entered into with Supplier shall remain valid for a period ranging from 3 months to
1 year. But the contract can be terminated earlier with 15 days notice in case of any breach of
contractual obligation and / or malafide / undesirable activity on the part of the supplier.
16.1 INSPECTION: The inspection of material will be carried out at the receiving Milk
PIant/Unit premises. However inspection of the material may be carried out at the suppIier's
premises in the following cases:
(a) Where the goods ere to be sent to other place than the plant, as in the case of corrugated
boxes for packing of Ghee / WMP / Cheese / Butter tins etc.
(b) Where the heavy amount is involved and the supplier/manufacturer is insisting on part or full
payment in advance.
(c) Any other situation / circumstances where the competent authority is satisfied that spot
inspection and / or prior inspection before despatch of goods is necessary.
16.2 Where the Inspection of goods/machinery is to be carried out at the premises of the
supplier/manufacturer, a technically qualified and experienced officer is to be deputed by the
management.
16.3 COMMITTEE FOR WEIGHMENT / MEASUREMENT: Where material is received in
bulk, committee comprising following may be constituted to ensure correct weighment /
measurement of the incoming materials:
1. Quality Control Officer or his representative.
2. Store Officer or his representative.
3. Security Officer / Incharge or his representative.
16.4 Inspection by Milkfed/Milk Unions shall not absolve the supplier of the responsibility to
provide acceptable product nor shall it preclude subsequent reiection by the Mlkfed / Milk
Unions during use of the material or warranty period.
17. PAYMENT:
The payments are made in accordance with the term and conditions stipulated in the supply
order/rate ontract. The normal payment terms may however be:
(a) 100% payment within 15 days from the date of safe receipt and lnspection of material at
destination.
(b) In those cases, where the payment against despatch of documents through bank / delivery is
to be made, 90 % payment can be released against proof of despatch of material by the supplier
and balance 10 percent payment alter receipt and inspection of the material at destination.
However in emergent circumstances or for monoply items i.e. machines/goods to be imported
etc. upto 100% payment can be made against proof of despatch documents.
(c) 100 % payment against actual delivery can also be made under exceptional circumstances
depending upon the reputation of the supplier/availability of item in the market/nature of item
with due approval of competent authority.
18. ADVANCE PAYMENT:
(a) Normally advance payments against order for the supply of machinery / equipments may be
discouraged as far as possible. However In case it has to be given advance payment to the extent
of upto 40 percent may be made only under the circumstances where supplier/manufacturer does
not agree to undertake supply without advance payment. This advance payment may however be
made against counter cheque or confirmed bank guarantee of the amount equivalent to the
advance plus 20 percent interest for agreed delivery period and valid for a period equal to the
delivery period agreed in the purchase order/contract.
(b) 100 % advance payment may be made only under exceptional circumstances after ensuring
that advance payment is fully secured.
19. REPEAT ORDERS
Repeat order's may ordinarily be avoided. However following conditions may be satisfied when
any repeat order is placed.
(a) Generally repeat order's shall not be placed after six months of the date of issue of the
original supply order.But this condition can be relaxed by the competent authority if considered
appropriate and in case upward market trend is noticed & previous rates are lower.
(b) Value of repeat order(s) may not exceed the value of the original order.
(c) Repeat order(s) may not be placed when there is a general down-ward trend in rates in the
market, since the original order was placed.
20. NO DUES CERTIICATE AND RELEASE OF SECURITY / EARNEST MONEY
20.1 Where the contract has been duly executed and there is no dispute with the supplier with
respect to delivery of goods, No Dues certificate may be sent to purchase section by concerned
section i.e stores, accounts, consuming/indenting section within 30 days from the date of
completion of the supply/expiry of the contract.
The security of the suppliers may be released on receipt of the No Dues Certificate from the
concerned offices within 15 days. In case no reply is received within 30 days from the expiry of
rate contract from the concerned Milk Unions/Plants/Sections, it may be presumed that nothing
is outstanding against the supplier. The security of the suppliers may be released without any
further reference to the concerned Section. The responsibility for any subsequent loss will lie
with the defaulting officers/officials.
20.2 In case of milkfed Annual rate Contract, all Milk Unions/Plants shall send No Objection
Certificates in respect of such supplier and rate contracts within ONE MONTH of the expiry of
the respective rate contract. In case no replay is received, it will be presumed that nothing is due
from the respective rate contract supplier and their EMD/Security shall be released at the risk,
cost and responsibility of the milk unions/plants for which they will be responsible for any loss,
detected at a later stage.
21. WARRANTY/GUARANTEE:
Normally the Machines/goods should be covered by a warranty/Guarantee clause and the same
should be stipulated in the supply order/rate contract where-ever necessary.
However, if during normal use and as specified by the supplier defects appear during the
currency of the warranty/guarantee period, the consignee/User department may immediately
report the defect to the supplier with a request to remove the same promptly. If with in 30 days,
the defects are not removed / rectified by the supplier, a show cause Notice may be issued to the
supplier to rectify the defects within a specified period failing which it may be got done at the
risk and cost of the supplier and legal proceedings may be initiated against the supplier.
22. INSTALLATION:
Where the installation of machinery/equipment is included in the contract/supply order, the
concerned department/Union may take immediate steps for getting the machinery/Equipments
installed/commissioned to their entire satisfaction. They may ensure that the period of
warranty/guarantee does not expire on account of delay in installation/commissioning of the
machinery/equipments.
23. (A) ENLISTMENT OF SUPPLIERS/MANUFACTURERS:
(i) From time to time publication may be given in the leading Newspapers for the enlistment of
New suppliers/Manufacturers and a classified itemwise register may be maintained in the
purchase section/Department. Notice Inviting Tander may be issued to those parties as and when
any item is required.
(ii) The approved supplier under annual rate contract may be considered for this purpose.
(iii) However as action against 23(i) is likely to take time this condition may not be considered
mandatory till such register is maintained.
(iv) Enlisted/Regular/known suppliers as per 23(i)may also be made nominal members of the
Milkfed/Milk Unions.
(B) DEVLOPMENT AND RATING OF VENDORS:
The system shall be developed after thorough study of Procedure For Development & Rating of
Vendors laid down by BIS, keeping in view feasibility of its application as it involves careful
examination and thinking to finalize this procedure and to introduce the same.
However in the meantime format for Tenderers assessment may be attached with the tender/
N.I.T documents(i.e ANNEXURE 2) to get information about the reputes of the suppliers.
24. DEMURRAGE:
The Demurrage, if any, paid by reason of delay on the part of the supplier in forwarding the
documents etc.shall be borneb Y the supplier .In such case demurrage may be recovered from
earnest money/security deposit/pending payments if any of the supplier.
However, if the demurrage is due to delay in getting the cocuments retired, releasing goods from
Transport company/Railway station, it may be borne by the milkfed units/Milk Unions i.e
consignee(s) Plants/Unions.Demurage may be treated as expenditure only after ensuring that it
was beyond control and un-avoidable.
25. INSURANCE:
When the goods be purchased on ex-works basis transit risk insurance may be arranged by the
consignee(s) at their own expense. This procedure is limited only to loss/damage of goods in
transit.
26. PENAL ACTION:
Inspite of Risk Purchase Clause in respective rate contract, when recovery of risk purchase
amount is not possible at the cost of the defaulting supplier/manufacturer for any reason, penal
action may be taken by the Managing Director of the Federation/Union(s) by way of black listing
the supplier/manufacturer for minimum three years in conducting business with the
Federation/Union, besides forfeiting the security money. However blacklisting can be
reconsidered on merits/changed circumstances on the request of the supplier after the expiry of
above period. Copy of the letter black listing any supplier/manufacturer may be circulated to all
the Unions and concerned offices.
27. CONTRACT:
The order for the purchase of goods will be placed in the set standard FORMAT(SEE
ANNEXURE 3) which can be revised from time to time by Managing Director, Milkfed(Pb)
and will be final and binding contract between the parties. Any default on the part of the
supplier/manufacturer in the execution of the contract will be dealt with in the manner mentioned
hereinafter, which shall also form part of the supply order/contract.
28. RISK PURCHASE:
In the event of supplier/manufacturer failed to supply the goods, the risk purchase will be made
from the open market at the cost of the suppler/manufacturer. The procedure for risk purchase
shall be as under:
(a) The supplier must have been given order for a specified quantity indicating the delivery
period against the actual rate contract.
(b) The supplier must have started execution of the running rate contracts/ quantity volume
contract as the case may be. In case execution of rate contract has not been started security be
forfeited after giving due notice.
(c) The supplier must be given a reasonable time as demanded by him in his tender or as per
Negotiation for making the delivery of goods.
(d) It may be ensured before affecting the risk purchase of ordered / indented quantity only that
the suppliers have violated the contract/ orders in giving us supplies within stipulated delivery
period.
(e) The Registered Notice should be given to the defaulting supplier well before going for risk
purchase and rate contract entered into with the defaulting supplier shall be terminated after
effecting risk purchase.
(f) For effecting risk purchase following procedure shall adopted:
(i) Risk Purchase be made only for the ordered / indented quantity placed / given to the
defaulting party after inviting / collecting fresh offers at the lowest rate or alternatively from the
next lowest tenderer of the original tender as the case may be.
(g) The rates as well as the total amount recoverable from the defaulting supplier/ manufacturer
must be conveyed by registered post to the defaulting supplier.
(h) The excess amount spent in risk purchase may be worked out early and all pending payments
of the defaulting supplier equivalent to the amount of recovery may be withheld till further
orders.
29. PENALTY ON DELAYED SUPPLY:
In the event of delay on the part of the supplier in delivering the goods, penalty of 0.5 percent per
week or a part thereof on the cost of the material supplied late may levied subject to maximum 5
percent. This amount may be deducted from the balance payment of the supplier or from the
security of the supplier, as the case may be.
(i) No recovery of Penalty will be made if the delayed supplies are accepted by extending
delivery period either by consignee plant or by MILKFED. Consignee Plant will allow extension
upto two weeks on the request of the supplier by recording that reasons of delay were genuine
and there was no loss to the Plant.
(ii) Where delay is of more than two weeks, the matter for extension of delivery period will be
referred by the consignee plant to the committee / authority, recommending / approving said
purchase with a certificate that there are genuine reasons for delay on the part of the supplier and
no loss will result, in case extension in delivery period is allowed. The case will be decided on
merits.
30. PROCEDUCE TO WORK OUT PENATY FOR DELAY IN SUPPLIES:
In case supplies are not made by the supplier/manufacturer within the prescribed period of
delivery, the belated supplies may be accepted subject to levy of penalty as mentioned at Sr. 29
above in working out the period of delay, the following points must be kept in view:
(a) The word delivery period shall include extended delivery period and the usual postal time
for receipt of letter be supplier and proposed transit time likely to be taken for delivery of goods
by the supplier at destinations i.e. upto 8-10 days.
(b) The delivery period shall be computed from the date of amendment in the supply order only
when it is so stipulated therein, otherwise the delivery period mentioned in the supply order shall
be adhered to.
(c) In case of the phased delivery, the period of delay shall be worked out in respect of each
consignment which is supplied after the expiry of the due date.
(d) For working out the quantum of penalty, the value of goods shall include taxes and statutory
levies.
(e) If on the first call for inspection of goods (at works of supplier) is found to be fake or found
to be sub-standard on inspection and hence rejected but subsequent call is made after the expiry
of the delivery period, and the goods are found acceptable on inspection, the consignment will be
treated as belated supply.
31. JURISDICTION FOR DISPUTE SETTLEMENT:
31.1 Any dispute arising out of the contract/ supplies at Union/Plants level will be referable to
the Managing Director of the Milkfed Punjab Chanigarh for arbitration, whose decision shall be
final and binding.
31.2 In case of any dispute or controversy arising out of contract/Supplies at Milkfed (H.O)
level, the same shall be referred to the Arbitration of the Redistrar, Co-0peratove Societies,
Punjab, or his nominee. The decision of R.C.S. Punjab or his nominee shall be firm and binding
on both the parties. The provision of the Arbitration and Conciliation Act 1996/ The Punjab
cooperative Societies Act 1961and as amended upto date (as the case may be/ which ever
applicable) shall also apply to arbitration proceedings which shall be held at chandigarh only.
32. VARIATION IN STATUTORY LEVIES SUCH AS SALES TAX EXCISE DUTY,
CUSTOMDUTY:
If during the currency of he delivery/contracted period stipulated in the supply order, there is a
variation in the statutory levies e.g. Sales Tax. Excise duty, custom Duty or a fresh levy as
imposed on finished products, this may be allowed on the production of documentary proof in its
support, by the supplier/ manufacturer even in the absence of such term in the order/ rate contract
being statutory levies. This can also be considered in case where rates are inclusive of such taxes
and levies provided initial offer contains the breakup of levies/ taxes.
33. EXTENSION OF DELIVERY PERIOD:
The competent authority may extend the delivery period for any number of days by an order in
writing on the request of the supplier /manufacturer in case of force majeure circumstances.
34. REJECTION/ REPLACEMENT:
a) Rejected material other than packaging material should be returned to the party within one
month at the risk and cost of the party/supplier.
As regards rejected packing material which is already printed for Plant should be returned after
defacing/deshaping so that it may not be re-used by any individual or any establishment
unauthorisedly.
b) In case it is required to use packing material/ ingredients with slight/ minor deviations from
laid down specifications due to production constraints, same may be used with suitable
deductions after approval of Managing Director/ General Manager of the Union/ Units without
affecting the quality/ performance of the finished products/ functions.
c) However use of such sub-standard material, should be properly documented and traceable as
per ISO-9002 requirements so that in case of complaints of finished product from the market,
appropriate action can be taken at the Plant level.
35. PLACEMENT OF TRIAL ORDER OF VITAL PACKAGING MATERIAL-VENDOR
DEVELOPMENT THEREOF.
With a view to encourage vendor development and to have more competitive offers, following
system may be adopted for placement of the trial orders to those manufacturers of vital
packaging material who could not participate in the annual tenders on the one pretex or the other:
(i) Trial order for the vital packaging material like Milk/Ghee film, ghee / WMP & Butter/
Cheese container sand kraft paper nags may be placed with the new manufacturers of the
packaging material whosoever approaches for the purpose.
(ii) Quantity of trial order may be kept as minimum possible as decided by the MILKFED
depending upon the nature of item.
(iii) Before placing order, factory premises of the manufacturer may be got inspected by the
committee and on the basis of their recommendations i.e. in case the Party is considered fit for
placement of trial order keeping in view hygienic condition the facilities available with them etc.,
trial order be given.
(iv) 2 % earnest money of the total value of the order or Rs.5,00/-in lumpsum whichever is
higher may be obtained before placing the order.
(v) Trial order be given at the lowest rates approved by MILKFED for supplies by the rate
contract suppliers.
(vi) Placement of trial order shall subject to the condition that even after successful completion
of the trial order, MILKFED shall not be under any obligation to consider placement of further
order on them.
(vii) Regular order shall be given only to those parties who will participate in our regular tender.
(viii) EMD of the Party be released after completion of the trial order irrespective of the fact that
quality of the material supplied conforms to our specification or not i.e. once order is executed,
release of EMD may be considered.
(ix) in case of un- succesful execution of First Trial Order, party may be given one more/final
opportunity only if requested by the party, to prove their capability, in case material supplied
found to contain manufacturing defect only and raw material used found to be of strictly laid
down standard/specifications and that too on the recommendation of the Consignee Milk Union
that the party is capable of improving further.
(x) Rejected stocks of Trial orders will have to be destroyed by the party in the presence of
representative of concerned Milk Union or shall be returned after defacing/deshaping.
36. PURCHASE OF CATTLE FEED INGREDIENTS:
36.1 Purchase of Cattle Feed Ingredients shall be made at Cattle Feed Plant, level through
registered manufacturer/suppliers only.
36.2 (a) For the propose. General Manager of the Plants shall register manufacturers/ suppliers
for the supply of different types of Cattle Feed ingredient after getting standard terms and
conditions (SEE ANNEXURE-4) accepted and after getting deposit of security amount as
decided by Managing Director Milkfed (Pb) from time to time.
(b) The procedure for registration of manufacturers/suppliers for Cattle Feed Ingredients shall be
as under:
(i) Press advertisement (in at least two Newspaper for wide publicity) shall be given by both the
Cattle Feed Plants at Bhattian near khanna and Ghaina ke Banger jointly once in a year for
inviting more manufacturers/suppliers to get themselves registered for the purpose.
(ii) The tenure of the registration shall be for a period of three years, Thereafter renewal of
registration of all the registered manufacturers/ suppliers shall be done after every three years
irrespective of date of registration of any particular manufacturer / supplier by the General
Manager of both the Cattle Feed Plants.
(iii) List of manufacture/ suppliers thus registered/ renewal shall also be made available to
Milkfed(Head Office) by the General Manager of the Cattle Feed Plants.
36.3 Registered manufacturers/ suppliers shall send their tender offers on letter head pad which
shall be opened at the specified timeat respective Cattle Feed Plants as decided by the Federation
from time to time. These tenders shall be opened by the committee authorized by Managing
Director, Milkfed(Pb) from time to time and committee shall decide purchase of cattle Feed
Ingredients on the spot keeping in view market trend and requirement of Cattle Feed Ingredients
as well as indents and least cost formula of Cattle Feed. However ex-Post facto approval of
Managing Director, Milkfed (Pb) shall be obtained in due course of time.
36.4 The items listed below for Cattle Feed plants shall be arranged either through Milkfed
(Head Office) on the requirement of Cattle Feed Plants or by General Manager of both Cattle
Feed plants, after obtaining prior approval of the Managing Director. Milkfed (Pb) Chandigarh:
1. Hesain/HDPE Bags.
2. Calcium Carbonate(Calcite Powder)
3. Molasses
4. Vitamin AD3.
5. Labour Rate Contract
6. Disposal of Old Bardana.
7. Any other item(s) as required by the both the Cattle Feed Plants from time to time.
36.5 For the purchase of other items like Fumigation covers, chemicals, machinery spares i.e.
pellet milldies/ press rolls etc. etc. exceeding financial competency of the respective General
Manager of the Plant, tender shall be invited by the respective Cattle Feed Plant at their own and
shall be opened by the same officer committee approval by the Managing Director, Milkfed(Pb),
Chandigarh for the purchase of Cattle Feed Ingredients. However the financial approval of all
such purchases shall be sought from the Managing Director, Milkfed (Pb) before placing orders.
37. PURCHASE OF PLANT & MACHINERY:
All capital nature plant and machinery shall be arranged by the respective Milk Unions after
seeking approval of their BOD. However, Technical approval before purchase will be obtained
from MD, Milkfed, punjab, Chandigarh, by giving complete justification.
38. THE FREEDOM OF INFORMATION ACT 2002:
The freedom of information Act. 2002 of Govt. Of India will also be part & parcel of this
Purchase Manual and the law/instructions contained therein will be followed in letter & spirit.
39. PURCHASE OF OLD /ISED GLASS BOTTLES
Milk Unions shall be empowered to purchase old/used glass bottles (carry-away) SEM from the
secondary market after following purchase procedure as applicable to the purchase of new glass
bottles.
However, in no case transit breakage beyond 2 % shall be allowed to the suppliers at per the
standard norms being following up for new glass bottles.
40. These rules will superseed all previous instruction where ever applicable issued by the Board
of directors/ Managing Director Milkfed (Pb) in respect of matters connected with purchases.

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Chapter 4 (Manual 3)

Rules, Regulations, Instructions, Manual and Records, for Discharging Functions

Type of the document

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1.9 CREATION OF STAFF STRENGTH

2.1 APPOINTING AUTHORITY

2.8 MODE OF APPOINTMENT

Physical contact and advances;

salary shall be paid for the period of such unauthorised absence.

General Manager/ Managing

General Manager of Milk

Manager (Quality Control)

Manager (Exten.& Proc.)

Manager (Seed & Multi.)

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The qualifications for direct recruitment shall be such as specified in Annexure-I

Period of duty on the post.

2. Casual Leave: 12 days per annum.

27. TERMINATION OF SERVICE

32. Habitual commission of any minor misconduct.

32. PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR MISCONDUCT

39. IRREGULARITY NOT TO EFFECT ORDER.

Choose one of the types given below.

Manual, Records, Others)

(ii) Nominee of RCS

(e) as far as possible purchased materiel should help sustainable development.

(ix) Jurisdiction for Dispute Settlement.

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