Section 39 in The State Financial Corporations Act, 1951

39. Power to give instructions to Financial Corporation on questions of policy.

(1) In the discharge of its functions, the Board shall be guided by such instructions on questions of policy as may be given to it by the State Government 3[ in consultation with 4[ , and after obtaining the advice of,] the 5[ Development Bank]].

(2) If any dispute arises between the State Government and the Board as to whether a question is or is not a question of policy, the decision of the State Government shall be final.

(3) If the Board fails to carry out the instructions on the question of policy laid down by the State Government 3[ under sub- section (1) of this section or the instructions given to the Board under sub- section (4) of section 37A], the State Government shall have the power to supersede the Board and appoint a new board in its place to function until a properly constituted Board is set up, and the decision of the State Government as to the grounds for superseding the Board shall not be questioned in any Court.

1. Subs. by Act 52 of 1975, s. 38, for certain words (w. e. f. 16- 2- 1976 ). 2. Subs. by Act 56 of 1956, s. 22, for" three months". 3. Ins. by s. 23, ibid. 4. Ins. by Act 77 of 1972, s. 26. 5. Subs. by Act 52 of 1975, s. 37, for" Reserve Bank" (w. e. f. 16- 2- 1976 ).