(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 1[in consultation with 2[and after obtaining the advice of,] the 3[Small Industries 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.
4[(2A) Nothing contained in sub-section (1) and sub-section (2) shall apply in a case where a State Government holds less than fifty-one per cent. of the equity shares in the Financial Corporation.
(2B)Notwithstanding the equity share holding of a Financial Corporation by a State Government, the State Government may advise the Financial Corporations on the matters of policy.]
(3)If the Board fails to carry out the instructions on the question of policy laid down by the State Government 5[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.