Sikkim act 004 of 1996 : The Sikkim Khadi and Village Industries Board Act, 1996

SIKKIM .'."

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 4/LD/96

Gangtok Tuesday, 9th July, 1996 No. 84 '-------~---.~.-.-

GOVERNMENT OF SIKKIM

LAW DEPARTMENT

GANGTOK.

Dated the 4th July, 1996.

NOTIFICATION

The following Act of the Sikkim Legislative Assembly having received the assent of the Governor on the 29th day of June 1996 is here7Y published for general Information» THE SIKKI.M. KH.!\'Dr AND VILLAGE rOUSTRIES BOARD

ACT, 1996'

(ACT- NO.4, OF 1996 )

AN

ACT

to consolidate and amend the law rdatin~ to the Sikkim Khadi and Village Industries Board and 1;0 provide for uniformity among the Boards in diffe- rent States of the country and to ensure better co-ordination arid imple- mentation of the various programn::cs heing undertaken hy them. BE It e..acted by the TJegislativ.~ Assembly of Sikkim in the Forty- seventh year of the Republic of Ir.dia as follows

CHAPTER - I

PRSLIMINARY

This Act may be called the Sikkirn Kihacl and Vllbge Indus- tries Board Act, 199(;

It exte.ids to the whole of Sikkim,

It shall come into force on, such date as the State Govern- ment may, by notification in the Official Gazette , appoint. In this Act, unless the context otherwise requires ;- Short title,

extent and

1.

cotumencetnent, Definitions. ^2.

(2)

(::)

"Board" means the Sikkim Khadi and Village Indusn ies Board established under section J of the' ~llV;

"Chairman" means Chairman of tlF' Board ; ~

"Comnnssron " means the Khadi and Vi.llage Industries '-:;ommbsion established under section of the Khad i an d Village Industries Commission Act, 1956 ; 61 ~fI956

"fixed capital Irrvest m.en.t' m.eans the Fixed Capital In- vestment as defined in sub-section (cc) of section 1 of the Khadi and Village Industries Commission Act, 19.~6 61 oJ 1956. I, :-. "(irwpr1ll11f>nt" means the Government of Sikkim ; (a)

(h)

(c)

(d)

1

Estahitsumen:

and iticorpo- ration ~fthe Boau),

Conioosition !

?f the Board. Powers and JUllctions c:I the Executive Officer.

TOIVCTS and junctions if the ,t1ccounts O./ficer.

2

(k) "rural area." means the area as defined in sub-section (ff) of section 2 of the Khar1i ai,d Village Irdustries Commission Act, 195"6 ;

(1) "village industry" n Jeans anv Tridustrv as defined in sub- !;ec;tlo~ (h) of section 7. of tl~e Khadi ·and Village Industries Commission }\,.t, I 'g6. 61 ?f I 956.

CI-LA.PTER - II

THE KHADI AND VILL/\GE INIJUSTRIES BOARD

3· (r) With '.{feet front such date as the Govemmer-r may, by notification, fix in this 'behalf', there shall be esta blished 'a Board to he called the Sikkim Knadi and Villagt Industries Board.

The Board shall be a body corporate having perpetual succe- ssion and a common' seal' and shall hy its corporatt name sue and be sued.

(2)

4· 1 he B~)o.rd shall consist of the follow.ir.g meml» rs appoir.te d^1)), the Government, namely '-

(0.\ Chairman

(b) Maximum four non-official members knowledge and experience with Khadi tries

ha Iring sp'. cialised

and Vilbge Indus-

Mernbei ,

(d)

Three representatives of

Finance all'l PJanning a!:cJ of Joint Secretaries

Representative of the Khadi and Villag:& Industries Commission

\ccounts OffIcer of the Sikkirn Kh:o.di · .Member,

the Departments ot Industries, Development not below the ranlc · .Member,

(e) and Villa>« Indus-=:> tries Hoard who skIll also he the ,;l1charuc of accounts ofc- (f)

the Board

Executive Officer of the Board

· .Member,

Member Secretarv.

~. ^T:kExecutive Officer appornte.l under clause^(fjofsection ,t, slv.ll exercise powers of gener.)l superintendence over the

",Frail'S of the Board and its day-to-day manapement uncle,' the clirection ar.d coru ro l of the Chair;nan. ~ The Fxe'~utive Officer shall h'_ responsible for the Iurnish- j!~,r of all returns, rel)ofts and statements required to be.::> iur.tish..d to the Government and the Commission under

section .~J • ..~

6.

(") 11: shall L)(';the dl'ty at' the Exccut ive Officer to place before the Board for its consideration and decision any matter of financial importancl:which the Accounts Offi~er suggests to him in y·'rit·ing that such matter he placed before the 130<1.1'.1.

The Accounts OfficE'.]' appointed under clause (e) of section 4 shall be i,l-clm'gc of all financial matters of the Board including it s lXldget, accounts and. audit, and it shall be the duty of the Acdcuuts Officer to bling to the notice of the Board through the Executive Officer any matter of financial i111port, which in his opinion, requires con- ~i r1'·"-::1tinn :'111,] (jPC'i ~inn l-v fhp En" ;.,,1

2

·~ Removal ?f Cbaitmati, ,Member, etc. from the

Board, Pesiqnation (?f office by

Mel1lb~r. Vacailcies ete. not to invalidate act and pro- ceedings 1" the Board. Temporary .l I. association ?f persons wit]. Board [or partlCUia!' purFose.

3

(d) if he has any fina.ncial interest in anv subsistinc contract made . ~, with o. in any work being done by the Board, except as a,::J • shareholder (other than a Director) in a company as defined in section 3 of the Companies Act, J9.t;'G : I rj·19,~6. Provided that' where he is a shareholder, h., shall

disclose to the Go vernmenr , the nature and extent of shares held by him in such a con'pany ; or

if he has any financial interest in any business L1nd~rtaking dealing with or any other village industry as may he speci ' fied.

(e)

8. ^Th~ any

(a)

(b)

(c)

Government may, bv not.fication, remove hum the office member of the Board,' who -

is or has become subject to any of the dlsqnallficntions men- tionedin section 7 ; or

in the opinion of the Government, has fail-rl 0:' is unable to carry out his duties ; or

absents himself from three consecutive meetings of the Board without the leave of the Board :

9·

Provided that before issuing y giving notice in wn- ting to the GO\'CI'n111en" and, or; such resign(\tion being noti- fiedin the Official Gazette by the Government, he shall be deemed to h::'Ve vacated his office.

In the event of' anv vacaucv in the office of a member of the Board bv reason of death, resipnatior., }'(')110 val 0': other- wise, su~h \a:.'an:.:y may h~ flJled'" in by the Government <111d the member thus appointed in such vacancy shall hold offi,'f; for the unexpired tC1TI1 of the member "hose place he. fills. No act or proce"dings of th.. };o:1.nl shall be invalid merely by reason r·'^f.1I',('othe exisi ence 0 any vacancy amongst rts mem x-rs 0 any ciercct in the coust iturion thereof.

(r) ^TheBoard^mayassociate^withitself^insuchmanner^and(or such purposes' as may be determined by regulations mad« under this Act,

A Pt'i'sun associated 'vitI: it hy the Board under sub-section

(I) for :1ny pU1'l)DSe shall have the ri6ht to take part in the discusslons of the Board relevant to that purpose, but shall not have the r icht to vote and sh~l1 not be': <1 member for anvo • other purpose.

(3) The Govei-ument and the Cornmisslori may depute one or mor e of their officers to attend any meetin,\; of the Board and to take part in the discussuions of the Board, but such. officer or ufficers shall not have the right to vote.

3

..••, - T~l'm if office -.2.'Jd ccnditions if service if t!;e Chairman and other r'elll- l-ets,

;Jppoinunen: '".-AH. and condi-

tion: if ser-

vice l' offi- cas (])jd other cmpII!)'ces oj the Board, St(}lJdi!J(! FJ- ; C /lance Co 'nlll i- tree.

Appoi ntment l 6. -.:.f otile/." Com- tnittee»,

4

d ' jJ.j1^1t/"]'11; ~oard sha.ll meer ar1ca:1r^unvv"~Pl'O~l;~r1^tIlJI ev",ry two moru ns.

The Chairman 01' in his absence, any member chosen hy the members present Irorn am.ongst themselves, shall preside over the meetlngs of the Board.

1\11 Cl, uestions at a meetinz of the Board shall be decide.d by

"] ,b 1 ' ] a majority at the votes of the mebers p,'esent ana votmg anc in the case of an equality of votes, the ('h(,irn~an of the mee- ting shall have a second or a ca5ting vote,

The IJf0cceciil1as of the meer.jn~ of tl'tC Road shall be for-,..... •....~ warded to th",- Governmellt and to Commission within fif- teen days of every m,eeting. , . '-

T 3. (r)

Every member of the Board sh~'lj hold office for a term of five )'eMS :

Provided that the Chairman shall notwlthstauding the CXpi'J'hti0U or his term continue to ho].1 of[,Cf>, until his successor enters upon his office.

(2) The terms and condttlons of service of the Chairman, Exe- cutive Officer, f\..;counts Officer and other members shall be such as may be prescri 'Jcd.

Subject to such rules as may be made by the Government in this Gflh:->lf, {-h~ Boar^r1 may, after creation of the pust with the prior appro va] of "]1e Government, <\ppoint such other offi- cers and employees as it considers nece5s~.ry for the efficient perlormance of its fuuctlon.

(7.) The SCJ'\"U'l~ conditions of the officers awl employees of the 13,)a1'< I "hall be: gon:>med l)y the State Government Servlc- 1\lde:: :IS (lnH~i}(kd [rom time T.O r.ime. The 130Ll1'(1 shall he t,I1C ,tppointing authority 111r(,spect of all the ()1f.c'~'I's 8.:1f1 the cuiplovces of tlu. Boa.rd. '~'hel'r. sh,,)] Le COllstitutu·:l frorr, ~1'l)'o11gSi: the members of tIN Board ~xclLldlng te Chairman, a Standillg finance Com. rn~tt~e to ,,;xeL'o;isc sl:ch powers and pel'fi-ml1 such functions !'elatmg to finance ol the Bos rd as; may be delegiLtecJ bv the Bo:n'c! in 1he pr(escribed manner. Th8 pl'oceedinus o'V the m,ccting or tht.:l Conuuittee shall be fOl'wfll'Cled to theb Govern- nicnt within fiftc<:n d,\y~ ct ew'll'Y 11,",Cetil'lg. !!lC l20ard ~11Uyalso. {~elef:"l~ 1I11\;<;:HiHor {Jnand"l l~<"IWCI''l to

IL O, ..1<::C:r~(''}:r CXPCdli'JOi..S ciwpollal of wozk s\'lhject to such condttlons as iL deems fij·.

o

it

~ -

5l,lb)ect to ull)' rules made in thb behalf, the Board, may, f1'o111 time t~ tnne , apPo,lllt OlJC '" more committees for the purpose of efficien.t ~~l,~rllargeof 1ts fUl~r:bOns ilnd, ill parficular for the purpose of secu- Img that the functlOl1S ;,ha11 be Qischarord accord~11~7 to th . r.. 1 . ~ J • .'~ e circums- ranees ann rcqurrcments of khad: or an} pa'rticular Yillae;e industry .

. - J

4

Dissolution ojBoard. Supersession of the Board, o

t

Recoveries of crrecrs.

Powers to write off lasses. 37· (r)

(2)

m gOOd raitn In pursuance 01 tne runcuons Vi i.ne pv,u u ~1J(.l1 be demed to be invalid by reason only of some defect subse- quently discovered either in the constitution of the Board or in the constitution of any Committee or in the appointment or selection of an officer or 01\ the ground that such officer was disqualified for his office. No act done in good faith by any person appointee. under this Act, rules and regulations shall be invalid merely 1))' reason of the fact that his appointment has been cancelled by or in consequence of any other order passed subsequently under this Act or any rules and rglJlations made thereunder. The Board shall decide whether any act was done ill good faith in pursuance of the functions of the Boad and the deci- sion thereon shall be final.

The Government may, bv notification, direct that the Board shall be dissolved fr~m clle date specified in the notification and thereupon the Board shall be deemed to be dissolved accordingly and any committee constituted shall cease to function.

(2) On and from the said date -

(1)

39·

(a) all properties and funds, which immediately before the said date were in the possession of the Board for the purpose of this Act shall vest in the Government ;

(b) all members shall vacate office as members of the Board ; and

(c) all r:ghts, obligati011.s and liabilities includmg any liabilities under any contract of the Board shall become the riohts. oblibvations and liabilities of the Govern- '" .ment, The Government may, by notification, supersede the Board for such period as may be specified in the notification. and declare that the duties, powers and functions of the Board, shan during the period Of its supersession, be ilischarged, exercised and performed by such persot' OJ' authority as may he specified in the said notification.

The Go vernrnct shall before expiration of the period of supersession, reconstitute the Board in accordance with the provisions of section 3,.

The Government uta)" take such incidental and consequen- tial provisions as may appear to be necl.~ss3ry Co. giving effect to the provisions of the section,

All'{ notification issued or order made by the Government uncleI' this section shall not be questioned in any court. Any sum payable to the Board under any agreement, express or implied or otherwise, however, may be recovered without prejudice to any other remedy as an arrear of land revenue.

(r) ^The1308.i:c1 may, after prior consultation^withtheExecutive Officer of the Board, write off losses upto rupees five thou- sand (Rs.l),ooo!-) in individual cases falling under any or all of the follow,ng categories, namely :-

(a) Loss of irrecoverable value of stores or of public monev due to theft. fraud or such other cause

5

10

(2) The Board may. with the pl'lOr approval of the Government, write off irrecoverable 10,,<,:> and losses exceediJlg rupees five thousand (Rs. 5,000/-) in each individual case.

(3) The Board shall take suitable action agail1st the p(~rsol1s res- pons.ble fm the loss and shall also send to the Covernnient a clC:t?ilp.d report together with the action taken against the persons, if any, resprJr,Sl bie for the loss.

The GOVt11J.lYlCntmay, by notification, make rll)e~ for carry"

ing out the purposes' of th~ Act.

In particular and without prejudice to the gell(.l'ality of the t~reg.oi!lg ~owers, such rules may provide for all or any of the followm.g matters, namely

(3) the place at which t-he office of the Board 5h,,11 be located

Power to

make rules.

.(c)

the manner or filling casual vacancies among tllf' mem- bers of the Beard and the terms and condition, of service of the Chairman, the Executive Officer, the Accounts Office:' and other members of the Board includinc the salary and allowances to be paic1 to them i\l~d the tiav~llinp' and dailv allowances to he'-' -drawn by them when they ai e on tJLLr ; the procedure to be fonowed in removiIig a member

who is or has l)ecom.e subject to ".ny disqualification ;

the condition subject to which and the mode in

which contracts may be entered into by 01" on behalf

of the Board; ,

the time within which and the form in which the

burlget anrl the supplernenrary budget shall be pre'

oared and submitted in each VC~l" under sub-section

, J'

(d) (e)

(J) of section 23 and section 25 ; the procedure to be folk.\\red and tho r'ondiJion to be observed in horrowing mo.aev under sub-section

(3) of section 30; u -' the procedure to he followed tor placing the Board in p-ossession of flt:,:ids.

In regan^l

to the io llo,.~il'\g) the Government may, in prior consultation with the Commission, make rules by notifica- tion, to gi.ve effect to the provisions of this Act :-

(a) The procedure to be foHow-r-:d and the condition to he observed in granting loans under section 30 ;

(b) the form and manner inv"hich the accounts of the Board shall he maintained under sub-section (I) of (f)

(g)

0.<

t

(c)

section 3 I ;

the form and manner in which the returns, reports or the statements shall l)(~ submitted under sub-sec- tion (I) of section 32 and section 33 ; constituting the Standing Finance Committee under sub ..section (I) of section J r; ;

any other matters which is to Le or Illay he prescri- bed.

(d)

(e)

11

foregoing powers, such regulations may provide for all or an;J of the following matters, namely :-

(a) The time and place of meetings of the Roald, the procedure to be follower: in regard to transaction of business at such mcetinvs and the qUOl'llnl necessarv b J

for the transaction of such business at a meeting ; ,'b) functions of committees and rhe procedure to be followed by such committees in the discharge of their functions

(c) the clelegation of powers and duties to the Executive Officer or any officer of the Board ;

the persons by whom and the manner in

merit, deposi.s and investment may be

behalf of the Board ;

(e) the custody of moncys required for the current ex- penditure of the Board and in vestment of moneys nor so required.

The Board met y, in consultation anf! with the previous sanc- tion of the Government, by notification, make regulations- to provide for the rnaintainance of' the minutes of the mee- ting of the Board and the transmission of the copies thereof- to the Government and the Commission.

(d)

which pay- made on Power to remove diffi- culties.

43· If any difficulty arises in giving effect to the prOVlSlons of this Act, the State Government may take such steps or issue such orders no t inconsistent with the provisions of the Act as lllay Clppear to it to be neccssary or expedient for the purpose of removing such c11- fficultv :

.I

Repeal and S,.vi ng. Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.

(1) On and L·om the date of' commencement of this Act, the provIsIOns of the Sikkirn Khadi and ViIlage Industries Board Act, I 9 7 8 shall stand repealed.

«2) Notwithstanding such repeal, anything done or any action taken under the Act so repealed shall be deemed to have been done or taken. under the corresponding provisions of this Act. I I of 1978.

By Order of the Governor,

?f

'-

B.R. PRADHAN,

Secretary to the Government of Sikkim, Law Department.

F.No. 16(28)LDf77-96