B—— 1935 - Pb Act v, AID TO INDUSTRIES 951" .
THE PUNJAB STATE AID 70 INDUSTRIES ACT, 1935,
TABLE OF CONTENTS.
CHAPTER 1.
Preliminary. SEcrions
1 Short tit 2, Deflnitioxlfs". extent and commencement.
CHAPTER II
Establishment of a Board of Industries. i gstablé'shment of a Board of Industries. rocedure in default i 3 5 Vieeors mg ault of election of members
6. Elec_tions and appointments to be notified in Gazette.
7. Resignation.
8. Removal of members. '
9. Casual vacancies,
10. Allowances and fees.
11. President at meetings.
12. Interested members not to vote.
13. Power of Board to make regulations.
14. Supersession of Board. .
15
16
Duty of Board. ' Documents and reports to be furnished to the Central Government. ;
CHAPTER III
General Provisions Regarding the Giving of State Aid.
17. Forms of State Aid.
18. Industries to which several forms of State Aid may be given. .
19. Applications for State Aid.
CHAPTER IV.
isi Regulating the Giving of State Aid Otherwise vammt'lllzn b)gr-l:he Supply of Machinery on the Hire- Purchase System.
20. Power to grant loans
.
21. Security for repayment.
22. Loan how repayable.
23. Notice to pay. 24, Effect of declaration
.
1
954 AID TO INDUSTRIES [I935: Pbh, Act V. An Act to Encourage the Development of Industries.ip, '[Punjabl by the Grant of State Aid.
" "Whereas it is expedient further to improve and regu. late the giving of State aid for industrial purposes ; Preamble.
AND WHEREAS the previous sanction of the Gover. nor-General required under sub-section (3) or section 80-a of the Government of India Act and the previous sane. tion of the Governor required under section 80-C of the gaiq Act have been obtained; :
It is hereby enacted as follows :—
CHAPTER I
_ PRELIMINARY. Short title, ex- 1. (1) This Act may be called the Punjab State Aid tent a d M- o Industries Act, 1935.
(2) It extends to *[the whole of the Union Territory of Chandigarh].
(3) It shall come into force onn such ®date as the '[State] Government may, by notification, appoint in this behalf. .
Definitions. 2. In this Act unless there is anything repugnant in the subject or context—
(1) "Board" means the Board of Industries consti- tuted under section 3 of this Act.
(2) "Borrower" means an individual, company or association or body of individuals, whether in- corporated or not, to whom or to which State aid hais been granted under this Act.
(3) "Company" means a company as defined in the Indian Companies Act, 1913.
ISubstituted for the words "East Punjab" by the Adaptation of Laws (Third Amendment) Order, 1051, L
2Substituted for the word "Punjab" by the Punjab Reorganisation (Chandigarh end Himachal Pradesh) (Adaptation of Laws on Con current and State subjects) No. 2 Order, 1968, X iab 3The Act came into force on the 7th March, 1936,—vide Pumé\th Government Notification No.' 1021-I, & I 1936/7815, dated the March, 1936. . a3
4Substituted or the word "Provincial" by the Adaptation of Lav Qrder, 1950.
\
2
E— 1935 : pp ' -Act V.1 A 1o INDUSTRIES 955 VI of 4) « 5
1913, (4) "Director" means the '|District -Industries officer of Chandj 3 i . garh] ?(and ncludes any officer ;'é}fi}flgnsed by the °[Central Government] to
t rm all or any of the functions of the Direc-
(5) ..';"dunder, this Act]. enxtle ustry" means any industrial business or an erprise conducted or undertaken either by bod'ndlv{dua}l or by a company, association or noty of individuals, whether incorporated or 6 !
((6) Cpttage Industry" means any industry carried on by a worker in his home and includes dairy farming, bee-keeping, lac-making and l'fee_ng a poultry farm. .
(7) "Village Industry" means any industry which forms the normal occupation, whether whole- time or part-time, of any class of the rural
. gopulation of the "[Union Territoryl}.
(8) "Machinery" includes plant, apparatus, tools and oj:her appliances required for the purpose of
. carrying on any industrial operation or process. [(9) "prescribed" means prescribed by rules made under this Act.]
' CHAPTER II
3. (1) For carrying out the purposes of this Act, Establishmet the ®[Central Government] shall, as soon as possible after of a Board of
the commencement of this Act, establish a Board to Industries. be called the "Board of Industries" consisting of the fol- lowing members, namely :—
"[(a) the Home Secretary, Administration of Chandigarh, ex-officio ;
(b) the Deputy Commissioner of Chandigar h, ex-
officio ;
ISubstituted for the words "Director of In dustries Punjab" by the
Punjab Reorganisation (Chandigarh and Himachal Pradesh) (Adap-
tation of Laws on Concurrent and State Subjects) No. 2, Order, 19
68.
2Added by Punjab Act No
. 12 of 1959, section 2. sSubstitutetd for the word
"Stete Government" by the Punjab
Reorganisation (Chandigerh and Himachal Pradesh) (Adaptati on of
Laws on Comcurrent and State Subjects) No. 2, Order
, 1968.
4Inserted by Punjab Act IIT of 1940, section 2(i).
sSubstituted for the word "State" b y the Punjab Reorganisation imachal Pradesh) (Adaptation of Laws on Concur- 'State Subjects) Order, 1068,
eExisting clauses (6) and (7) renumbere d respectively as (8) and
(9) by Punjab Act II1 %'m";"'%'é"";'&'ni.'.fi'a (Chandigarh and Hi
3 by the al eo
rgani: n hand ar]
8-
7Substituted aptation of Laws on State and co ncurrent Subjec"t's)
3
956 AID TO INDUSTRIES [I935: Ph, Act v,
(c) the District Industries Officer of Chandigarh ex-officio ; '
(d) the Agent, State Bank of India, Chandigarh ex-officio ; '
(e) three members to be appointed by the Chief Commissioner from amongst the industria- lists;]
Provided that the Board shall have power to invite for consultation on any particular question before it, not more than three persons, special- ly qualified to advise on the matter in question or having special knowledge of local conditions in the area where the industry in question is situate.
And provided further, that at any meeting of the Board the [Home Secretary Administration of Chandi- garh] shall have power to invite any person for consulta- tion on any particular question.
Any person so invited whether by the Board or by the '[Home Secretary, Administration of Chandigarh] shail not have the right to vote.
(2) The *[Home Secretary, Administration of Chandi- garh] shall be ex-officio Chairman and the Director shall be ex-officio Secretary of the Board.
(3) ®[Four] members of the Board shall form a quo- rum.
4[ # B3 #* ® * * *].
(4) - 1Substituteq for the words "the Minister" by the Punjab Reorganisa- tion (Chandigarh and Himachal Predesh) (Adaptation of Laws on Con- current and State Subjects) No. 2 Order, 1968, ) 2Substituted for the werds "Mjnister-in-charge of Industries" by the Punjab Reorganisation (Chandigarh and Himachal Pradesh) (Adap- tation of Laws on Concurrent and State Subjects) No. 2, Order, 1968. sSubstituted for the word "five" by the Indian Independence (Adaptation of Bengal and Punjab Acts) Order of 1948 (G. G. O. 40).
"Section 4 omitted by the Punjab Reorganisation ' (Chandigarh and Himachal Pradesh) (Adaptation of Laws on Concurrent and State Subjects) No. 2 Order, 1968, >
4
1935 . py, L Pb. Act V.1 aw 1o INDUSTRIES il Periosci a;r liltetgioalfg nay from time to time elect, for such ViceChirme™ airman, XS fit, one of its members to be Vice-
6~ Th s " i and
pointeq x[,egngmes of the Vice-Chairman and of the ap- ,p'::fif,i,zim to I members of the B blished be notified in
by the *(Central Government] ifl tl?gr"%é}f;'iaclila}la%glzletézl.e oftial Gasete. e S, 1) The Vice-Chairman or any other appointed Term of office.
. *] member ign hi ) i in Writing to the Ch;?;)i;:mgn his office by giving notice
(2) (a) Subject to the provisi i . provis ons of this Act an ap- plomted member shall hold office for °[five] years unless the [Central Government] otherwise directs °1* * * * *1. 7[*******]
of b)*A_n' outgoing member may, if otherwise qualified, -
be [ *] re-appointed.
( 3) No{:withstanding the expiration of the term
mentioned in sub-section (2), an appointed °[* * * ]
member shall continue to hold office until the vacancy
caused by the expiration of the said term has been filled,
provided that no vacancy shall be allowed to remain unfil-
led for more than six months.
1The words "and elected" omitted by the Punjab Reorganisation
(Chandigarh and Himachal Pradesh) (Adaptation of Laws on Con-
current and State Subjects) No. 2 Order, 1968,
2Substituted for the words "State Government" by ibid.
3Substituted for the words "Punjab Gazette" by the Government
of India (Adaptation of Indian Laws) Order, 1937.
*** 4The words "or elected" omitted by ibid.
5Substituted for the word "thee" by Punjab Act, VI of 1938,
i lectted member shall hold office f [ ds "and zn electted membe shall hold office for five years
or uleilles'::}!l' time as he ceases to be a member of the body electinhg
him whichever is shorter" by the Punjab Reorganisation (Chandigarh
and Himachal Pradesh) (Adaptation of Laws on Concurrent and State
Subjects) No. 2 Order, 1968.
7Proviso omitted by ibid. 2 b the Panist B
"re-elected or" omitted by the Punjab Reorganisati (Ch:}:giezggrg;dr?fimachnl Pradesh) (Adantation of Laws on Cmo\{' State Subjects) No, 3 Order, 1968. current and .
) 1
9The words "or elected" omit ted by ibid.
5
e |
958 AID TO INDUSTRIES [I035: Pb. Act v, |
Removal of 8. (1) '[Central Government] may, by notification, aEgbers. remove the Vice-Chairman or any member of a Board if he—
(a) refuses to act or becomes incapable of acting as a member of the Board ;
(b) is declared insolvent ; (¢). is convicted of any such offence or is subjected by a criminal court to any such order as in the opinion of the '[Central Government] implies a defect of character which unfit him to continue to be a Vice-Chairman or member of the Board; provided that before the *[Central Government] notifiels the removal of a member under this sub-section, the reason for his proposed removal shall be communicated to the member concerned and he shall be given an apportunity of tender- ing an explanation in writing ;
(d) without excuse, sufficient in the opinion of the '[Central Government], is absent, without the consent of the Board, from more than four con- secutive meetings of the Board.
(2) The '[Central Government] may fix a period during which any person so removed under clause (b) or
(c) of sub-section (1) of this section shall not be eligible for re-appointment 2[* * * *],
C;isual' vacan-
. 9. When the place of any appointed [* * member of a Board becomes vacant by his removal, resig- nation or death, a new member shall be appointed 2[* * *! in the manner provided in section 3 :
* *]
li[t&fl'»*t**]'
ab 1Substituted for the words "State Government" by th p e Punj Reorganisation (Chandigarh and Himachal Pradesh) (Adaptation Laws on Concurrent and State Subjects) No. 2 Order, 1968. 2The words "or elected" omitted by the Punjab Reorganisation (Chandigarh and Himechal Pradesh) (Adaptation of Laws on Con- current and States Subjects) No. 2 Order, 1988. } $Proviso omitted by ibid.
g
6
1935 Pb. Act V. i : Pb. Act'V.] im 1o INDUSTRIES 9 1 '. .
undex!fl:?sv:ieg]' that any perso
n so appointed, [** * * *]
time as if b C}:On shall be subject to ret irement at the same
day on whi i ad become a member of the Boar d on the
is appointelg ,t[l"e _msnibir of the Board in whose place he
nominated a member of t%'ewBaZalraast:
appointed, elected or
Provided further, that no act of the Board or of its officers shall be deemed to be invalid by reason only that the number of members of the Board at the time of the performance of such act was less than the number provid- ed by section 3.
10. The members of the Board and the members of Allowances Committees, which may be appointed by the Board, when and fees.
necessary, ishall be paid travelling allowances of the pres-
cribed amount and on the prescribed conditions for attend-
ing meetings of the Board, or for p
erforming any
duty assigned to them by the Board
for the purposes
of this Aci.
11. (1) The Chairman or in his abs ence the Vice- Ppresident at Chairman shall preside at every m eeting of the Board meetings. and shall have a second or casting v ote in all cases of
equality of votes.
(2) In the absence of both the Chairman and the
Vice-Chairman the members presen t at any meeting may
elect one of their number to preside, who shall have a second or casting vote in all cases of equality of votes.
12. No member of the B oard shall vote on any rterestea
guestion coming before the B oard for consideration in memb ers not to
which (otherwise than in its general application to all vot&
persons and properties with in the *[Union territory] h e had
a pecuniary interest. Explanation.—In case of any question arising
er has or has not a pecuniar y interest,
h mem
Whe e "he Chairman shall be final. th~ decision O itwwed for the words wprovide
d further" bv the Punjab
Reo;;\';\'i';;'ti';ne (Chendigarh
and Himachal Pradesh)
(Adaptation of
1 on Concurrent and St
ate Sgb;ects") No. 2, Order,
1968.
'awiThe words "elected or nominated omitted by ibid. sSubstituted for the
word "State" by the
Punjab Reorganisation
(Chandigarh and Himachal
Pradesh) (Adaptation of
Lews on Concurrent
and State Subjects) Order, 1968.
7
960 AID TO INDUSTRIES (I035: Ph, Act v, | ( ulations cong; £ . (1) The Board may make reg sis. Bt o ks tex.tl\%ith( t{lis Act and _ the rules thereunder for regulations. carrying of all or any of its purposes. y i N ithout prejudice tq the 2) In part cular m}d witho o
gene1(~a1)lv ofp the foregoing power, th.e_ Board mjy
make régulations regulating or determining all or any
of the following matters, namely :—
(i) the time and place of its meetings i
(ii) the manner in which notice of meetings shall be given ;
(iii) the conduct of proceedings at meetings ;
(iv) the division of duties among the memberg of the Board ; and
(v) the appointment, duties and Procedure of special committees consisting wholly of members of the Board or partly of such members and partly of other persons, - Supersession of 14, (i) If at any time it appears to the '[Central Board. Government] that the Board is not properly perform-° ing the duties impcsed upon it by or under this Act, the '[Central Government] may, after considering any explanation offered by the Board, by an order in writing specifying the reasons for so doing, dissolve the Board and direct that the vacancies - shall there- [ * * *] by ap- poiniment in respect of appointed members in the manner indicated ahove, may direct,
15. It shall pe the duty of the Board— () to report to the '[Centra] Government] after — such enquiry, jf any, as it deems necessary Duty of Board
fSta!fi Government" by the Pllnj:'f:w:; ime, :
i
on Concurrent and State Subjects) No. 2 Oraeh) g coptation o 'he words "hy elec'ion in respect
h)
;
isati C f i ades l(és?;aptatwn of Laws on Concun( A paiearh and ects) Mo, 5,
8
T —— —
(935 : Pb. Act V.] am TO. INDUSTRIES 961 or as may be required by this Act, on ap- plications for State aid that may be referred to it for advice to the '[Central Govern- l"::i?tllv fi(;;r]any officer authorised in this be-
(b) to udvise the '[Central Government] on any va.dn:iatters thet may be referred to it :
sancti ided that 'ICentral Government] shall not nction Etate aid without reference to the Board ex- capt in the case of a lo
¢
exceed. Rs. 5,000, an the amou
nt of which does not
16. If the '[Central Government] so directs, the Secretary shall forward to the ![Central Government] any document and prepare and submit any report relating to the work of the Board.
CHAPTER IIL
GENERAL PROVISIONS REGARDING THE GIVING OF
STATE AID>
17. The forms of the State aid wrich may be given may include the following, namely :—
(4) the grant, of a loan; {i) the grant, sale or lease of land, raw material, fire-wood, water or any other property s[vested] in '[Government] for the pur- poses of the °[State] ;
'[(c) the payment of a subsidy, in the case of a cottage industry or village industry for any purpose; and in the case of any other indus- try for the conduct of research or the pur- chase of machinery] :
(d) the supply of machinery on the hire- pur-
chase system ; 3
(e) the guarantee of a minimum return on the whole or part of the capital of a joint stock company invested in an industry.
"igubstituted for the words
"State Govem!_ner:t" by the Punjab
eorganaton, (Chnaualh, 1, Jeri o Foriet g b Act No. 12 of 1959, section 3, :SA:l;isetfilx'zdplllggathe
word "of the Loczl
Government" by the
Government of India (Adaptat
ion _of Indian Laws) Order, 1
937.
'eé'_r:hsfi{u'efl for the words "His Maje sty by the Adaptation of
L"T'-Bs&éfvfitelgbgér tha word "Province" by the Adaptation of Laws
Orde_gugmhm for the old clsuse by Punjab Act. TIT of 1940, section 3 Documents and
report to be fur-
nished to the
Central Govern-
ment,
Forms of
State aid.
9
B |
962 AID TO INDUSTRIES [1935 : Ph, A \' Industries to 18. State aid may be given to— which several X
forms of State (a) a new or nascent industry ; i may e given (b) an industry to be newly established in '
" area where such industries are undevelop. ed ;
(c) a cottage industry 'lor village industry] ; o
(d) an industry which needs revival, or develop.- ment by modern methods.
.Appllcaflon for 19. Apnolication for State aid shall be made tq State aid the Director in such form and shall contain such in- formation, as may be prescribed.
CHAPTER IV
PROVISIONS REGULATING THE GIVING OF STATE Amp OTHER- WISE THAN THE SUPPLY OF MACHINERY ON THE Higg- PurcHASE SysTEM
Tomaver to grant 20. Loans granted under this chapter shall be ' subject to the sanction of the *[Central Government] given after consultation with the Finance Department, provided that in regard to loans not exceeding a pres- cribed amount, the *[Central Government] may make rules delegating their powers to such authority or officer as they deem fit. Security for 2L. °[(1) (a) On the acceptance of an application SSeSyment. for a loan, the applicant shall execute a deed in the prescribed form, undertaking to apply the loan to the purpose for which, and to fulfil the conditions on which, the loan is granted, rendering himself and such property as may have heen specified in the deed as security, including machinery purchased or any building constructed with the aid of the loan, and in the event of such property being found insufficient, rendering the whole of his property liable for repay- ment of the loan with interest and costs, if any, incur- rfid }iy the *(Central Government] in making or recovering the loan.
(b) No transfer, assignment or charge made or creat- ed after the execution of the deed, in relation to the property specified therein or machinery purchgse
"Inserted by Punjab Act, 1T of 1940, section 3., " *Substituted for the words "State Government" the Maf Reorganisation (Chandigarh and Himeachal Pradesh). (Adaptation Laws on Concurrent and State Subjects) No. 2 Order, 1968. b 4
10
1935 : Pb. Act V.] AID TO INDUSTRIES 963 or building constructed with the aid of t he loan, shall
be valid against the '[Central Government] unless it has been made or created with the previous consent in writing of the authority sanctioning the loan.]
(2) When the application has been mad e by 2
firm or company the deed shall be execu ted by a dulv
authorised representative thereof, and the deed shall
thereupon be deemed binding on the said firm or com-=
pany and the property of the said firm or company
shall be liable for the repayment of the lo an in the
same manner as if the loan had been granted to an
individual.
22. *.The loan together with all interest due there- Loan how re-
on, if any, shall be repayable either in a Jump sum or payale.
by instalments as may be provided for in the deed
executed by the borrower under section 21.
23. (I) When any loan or instalment or interest Notice to pay. thereon falls due and is not paid on or before the due
date or when a loan has been declar ed immediately
repayable under section 27, the officer empowered by
the '[Central Government] in this beh alf may cause
to be served on the borrower a notice in t he prescribed
manner calling upon him to pay the sums due within
such time as may be fixed therein.
(2) Such notice shall contain an inti mation that
in case of default the said officer will i ssue a declara-
tion in the prescribed form showing the amount of the
debt due and the property mention ed in the deed as
liable to satisfy the same.
24, (1) If within the time so fix ed the sums due Fffect of dec- are not paid, the officer
empowered under section
23 laration.
may issue the declaration
as described in sub-section
(2) of the same section, and such declaration shall be )
published in the *[Official Gazette]. sSubstituted for the wo
rds "State Government
" by the Substituted A andigarh and Himachal Predesh) ( dflplatli ,:gug
rganisation
Esgvsgun Concurrent and S
tate Subjects) No. 2 Order
, 1968. ... .
. 2Substituted_ for the word, "Gazette" hy t he. Government of Indi a
(Adaptation of Indian Laws) Order, 1937
11
Execution leclaration, inepection " and has been made under this Chapter the applicant, and urns, b
AID TO INDUSTRIES (1935 : Ph. Act
V
964
' shall be conclusive evidence i tents, and shall not be cqlled into question
ioxf ;;syc:(::lft b\; the borrower, his heirs, legal represen- tatives or assivgns, '[or by any meprex; of his family
du Family] *[nor shall any i to a Joint Hin e icis: ule arising fro
m or under the per-
right, principle or r
2
;:)ial' g: lcuslt)om.ary law applicable
. todthe tslfuc} [%ersgng 1 , not anything contained in the "[Punja
Oy o et La o, 190 affect the val idity or
Alienation of Land Act, 190 , effectiveness of a mortgage executed or of a declara—q
tion published under this Act, or the pro cedure there-
in provided for enforcement thereof.]
(2) Such declaration aration may be produced by the said officer, or by such other person as he may either gene- rally or specially appoint in this behalf before the principal civil court of original jurisdiction, within the local limits of whose jurisdiction any of the pro- perty liable for the debt due is situate in the same manner as a decree of which execution is sought.
(3) Such decl
25. When declaration has been received by a civil court under section 24, the court' shall immediately attach the property mentioned in the declaration and shall pass an order directing that, unless the amount mentioned in the declaration is paid within such time, not exceeding two months, as the court may consider reasonable, it may be recovered by sale of the property mentioned in the declaration as if it were a decree for the payment of money passed by the said court in the exercise of its ordinary civil jurisdiction. of
26. In any case in which an application for a loan at any time during the currency of a loan that has been granted the borrower, shall be bound—
(a) to comply with any general or special order of the Director relating to the inspection of
"Inserted by Punjab Act, III of 1040, section 4(a), Inserted by Punjeb Act, III of 1940, section 4(b). 3Repealed by Adaptation of Laws (Third Amendment) Order of
1951.
12
1935 : Pb. Act V.1 a1 To mepusTRIES 965 the premises, building, machinery and stock- in-hand of the industry;
(b) to permit the inspection of all accounts relating to the industry;
(¢) to furnish full returns of all products manu- factured or sold, both as regards description and quantity;
(d) to maintain such special accounts and to fur- nish such statements as the Director may from time to time require; and
(e) to submit the accounts of the industry to such audit as the Director may prescribe.
27. If the Director, after any inspection provide d
for in section 26, is not satisfied that the money lent is
being applied to the purpose or purposes for wh ich the
loan was granted or that the conditions on which the
loan was granted are being duly fulfilled, he may de-
clare, notwithstanding anything contained in the deed exe-
cuted under section 21 that the loan is immediately re-
pavable and shall give notice of such declaraion to the
horrower.
28. If at any time during the curren cy of the loan,
the value of the security falls belo w the outstanding
Lalance of the loan, the D irector may either proceed to
recover in the manner laid down in sections 23, 24 and
25
so rauch of such balance as is not adequately covered by
the then existing value of the security or accept su ch ad-
ditional or collateral security as he may deem sufficient.
29. If the borrower fails to comply with any order under clause (a)
of section 26 or do es not Pemit or
obstructs the inspection of the accounts relative to the
indnstry or makes defa ult in respect of any of the parti-
culars specified
in clauses (f:),
(d) and (e) of the said
section, or if the borrow er disposes of any pr ofits in con-
travention of the
provisions of section 33, the Director
mav, after consideri ng any repres'ent
atxon the borrowe
r
ma";r' make within such time as the [ Central Government] : he words "State
Government" by the Punjab 15ubstituted (c',?;,.ééarh od Himechal Pradesh) CAdaptation of Reorganisation {ate Subjects)
No. 2 Order, 1968.
Laws on Concur
rent and S
Penalty for
default in apply-
ing the loan,
Power to adjust
security during
currency of loan,
Power to
cover loans.
re-
e — T ——
13
966 AID TO INDUSTRIES (1935 : Ph. Acy v
d to recover the loan in allow in this behalf, procee mth:ymanner laid down in sections 23, 24 and 25. ithi . ipt of a notic Appeal 30. With n fifteen days of the receip "
under sections 27, 28 or 29, the borrower may appeal against such order to the '[Central Government] and the decision of the '[Central Government] thereon shall be final.
Government 31. The conditions of a guarantee by the '[Centra] e of i Government] of a minimum return on the whole or part U T of the capital of a joint stock company shall be—
(a) that the industry shall be subject to the con. ditions of section 26 in respect of inspection, returns and accounts;
(b) that a minimum portion of the authorized - capital of the industry to be fixed according to the circumstances of each case has been subscribed and paid in cash;
(c) that no such guarantee shall in any case ex- tend beyond a period of 5 years;
(d) that during the period to which the guarantee extends, the ![Central Government] may im- pose on such persons as it considers to be directly concerned in the promotion of the company, a condition that if they transfer any of their shares without the consent of the *[Central Government], they shall be liable jointly and severally to refund the ![Central Government] any sums paid to the company in fulfilment of the guarantee ;
(e) that the '[Central Government] shall be en- titled to recover the whole or any part of the sum paid by the *[Central Government] on account of such guarantee with interest at the rate in force on the date of the agreement for loans granted under the land Improve- ment Loans Act, 1883, at any time after such !Substituted for the words "State Government" by the Punjeb Reorganisation (Chandigarh and Himacha] Pradesh) Adaptation © Laws on Concurrent and State Subjects) No. 2 Order, 1968.
14
1935 Ph. Act V| AID TO INDUGTRIES 3o period as may have been laid down in the agreement, provided that the *[Central Gov- ernment is satisfied that the company is pay- ing or is able to pay interest or a dividend upon , the capital shown as paid in excess of such rate as may be fixed in the agreement and suph recovery shall be made in the manner laid down in sections 23, 24 and 25:
Provided that the sum recoverable by the *(Central Government] in any one year shall not exceed a sum equal to half the net profits made by the company in the preceding year in excess of the sum required for the payment of interest or dividend at the rate fixed in agreement.
32. [A subsidy to a cottage industry or a village Subsidies. industry for any purpose and a subsidy to any other indus- try for the conduct of research or for purchase of machinery may be granted by the *[Central Government] on such conditionis as may be prescribed in this behalf].
33. No borrower shall pay any dividend or distribu te Disposal = of
i
fits whi -
or take any profits in excess of such pe rcentage rate upon 55~ prlinatory
the amount of the capital of the industries as the ![C entral State aid Is
Government] may from time to time f
ix, until the condi- m& are not
tions on which the State aid has
been granted are fulfill-
ed.
. . . :
e
34. Notwithstanding anything containe d elsewhere con u;rr::m;gded in this Chapter, the '[Central Governm ent] may, by the jrgustry,
au-ointment of its own directors or otherwise ex ercise
sfi(l:.h'control over the conduct
of the industry to which the
State aid has been given as sh
all suffice in its opinion to
safeguard its interests, provided that such right has been
expressly reserved by agreement at th e time the aid was
granted.
rds "State Government" the Punjab 1smi7:;1tcl\;;ed( ég;ngi';nxand Himachal Pradeth) (Adaptation of Reotgand Concurrent and State Subjects) No. 2 Or
der, 1968.
Lawf-sa;b-mu'ed for the old section by Punjab Act, IIT of
1040, section 5.
15
968 AID TO,INDUSTRIES (1935 : Py, Act y Method of re. 35. '[Notwithstanding anything contained jp dve. ™Y ions 23, 24 and 25, any amount payable to the '[Cen::;i Government] under this Act or by virtue of any contraet entered into under this act including interest and costs, jf any, may with the previous sanction of the *[Centra] Goy,. ernment], be recoverable as arrears of land revenue],
CHAPTER V
SuPPLY OF MACHINERY ON HmE-PURCHAsx
SYSTEM
Percentage of 36. No machinery shall be supplied by the *[Cen- ':'d":' bih'_';P""" tral Government] on the hire-purchase system unless the o " applicant therefor deposits with the Director such percen. tage of the cost thereof as may be prescribed, and fur- nishes security for the unpaid portion of such cost in the same manner as for a loan granted under the provisions of Chapter IV. Particulars to 37. When an application is allowed, the Director besePecifed i ohall, subject to and in accordance with any rules that plication is al- may be made under this Act, make an order specifying lowed. the following particulars, namely—
(a) the amount of each instalment of rent to be paid for the hire of the machinery and the number of such instalments to be paid before the machinery shall become the property of
the hirer;
(b) the amount of interest, if any, to be paid with each instalment of rent on the remaining un- paid instalments;
(¢) the dates on which and the manner in which the aforesaid payments shall be made; and
(d) such other particulars as may be preserid- ed. '
5. 1Section 35 substituted by Punjab Act, No. XXXIX of 1953, sec:
P"_"j;b Substituted for the words "State Government" by the tation O Reofganisation (Chandigarh and Himachal Pradesh) = Adapta Laws on Concurrent and State Subjects) No. 2 Order, 1068. I
16
1935 : Ph. Act V.1 A To INDUSTRIES 969 h 38. Until the hiring is terminated in the manner ereinafter provided, the following provisions shall ap- ply, namely:—
(a)
(b)
(¢)
(d)
(e)
The hirer shall pay punctually and without demand the instalments of rent and amount of interest specified in the order referred to in section 37.
The hirer shall retain the machinery in his own possession in good and serviceable order and conditions and shall not, without the previous written consent of the Direc- tor, make any addition thereto or altera- tion therein, nor remove the machinery or any part thereof from the premises specifi- ed in the application for the supply thereof. The machinery shall remain the sole and absolute [property of the 2[Government]], and any transfer thereof or assignment of any right, title or interest therein or the creation of any mortgage encumbrance or any other charge thereon by the hirer shall be void as against the *[Central Government] unless 'it has been made with the previous written consent of the Director.
The machinery shall not be liable to dis- traint, attachment or sale by any process under anv law for the time being in force, otherwise than under this Act.
The machinery shall bear a metal plate in the prescribed form, and any person who wilfully removes or defaces such plate shall 1Substituted for the words "Property of the Laocal Government" b;r the Government of India (Adaptation of Indian Laws) Order, 1937, :Sybstituted for the word "Crown" by the Adeptation of Laws
Order, 1950.
"State Government" by the Punjab for the words Reo:gsgnh}:gttll:);ed(c';;ndlgarh and Himachal Pradesh) (Adaptation of Laws on Concurr! ent and State Sub
jects) No. 2 Order, 1968,
Conditlons of
supply of ma-
chinery on hire-
purchase system.
17
B
970 AID TO INDUSTRIES (1935 : Ph, A¢¢ v, be liable lo a flne not exceeding fiye J, ! dred rupees. It shall be presumed until 1tl}rlle
contrary is proved that machinery bearing such metal plate is the '[property of e J[Government]] hired out under thig Chap. ter.
(f) The hirer shall permit the Director or any person authorized by the Director in this behalf to inspect the machinery at reasonable times, and the Director or gy, other person shall have all such powers of entry as may be necessary for the purpose of making an inspection.
(9) In addition to the foregoing conditions the hirer shall be bound by such other condi. tions consistent therewith as may be pres. cribed by rules made under this Act, or may be imposed by the Director in any particu. lar case.
dcxfétfiwby 39. If the hirer makes default in paying the rent hirer, of the machinery or any sum payable as interest or any other charges due from him under this Chapter or fails to comply with any of the conditions which are contained in, or may be imposed under section 38, the Director may, after giving him 10 days notice, termi- nate the hiring and he or any other officer authorized by him in this behalf may thereupon enter the ore- mises in which the machinery is for the time being. kept, whether such premises belong to the hirer or not and seize and take away the same,
OPtion of hirer 40. (1) If the machinery is seized and taken away to purchas - um!fer.v selle.ed'?:r under section 39 the hirer I31&11 have the option to be default. exercised within one month after such a seizure O such longer period as may be allowed by the Director
in this behalf, of purchasing the same by payment o
the Director of the unpaid balance of the cost thereof together with such other amounts as may be due, an
the cost of any expenses incidental to such seizure an removal. e i by { Substiluted for the words "property of the Local GOVe"""lent the Government of .Indla (Adaptation of Indian Taws) Order, ¢ Laws 2Substituted for the word "Crown" by the Adaptatlon © Order, 1950, T - P F
h |
18
s 1935 : Ph. At v ) AID TO INDUBTRIES 971 ( 1)&12) }Ilf Wwithin the period ~specified in sub-section h D}e irer does not exercise the option of purchase, € Director shall proceed to dispose of the machinery. .41' If the Director terminates the hiring under " of section 39 and the hirer does not purchagse thenaran ™ terpip machinery under section 40, the hirer shall not be en-nation :e'cfl:,',':",g txtle§ to the refund of the sum deposited by him underand 26,
section 36 or to the refiund or remission of any pay-
ment made by or due from him during the hiring, and
shall be liable to pay such amount, if any, as the Direc-
tor may determine in respect of any loss caused by the
disp_osal of the machinery under sub-section (2) of
section 40.
42, When, after credit has been given for th? Termination of
amount deposited under section 36, the hirer -has paid,l;':,i,'{'og"?o.z o=
in full all the instalments of rent mentioned in clause of machinery.
(a) of section 37 and the amount of interest, costs and other charges payable by him under this Chapter, he shall become the owner of the machinery and shall thereupon remove from the same the metal plate mentioned in clause (e) of section 38 :
Provided that if at any time during the hiring the hirer pays in advance the remaining instalments of rent the interest payable in respect thereof shall be remitted.
43. If the hirer wilfully omits, after receiving due
. > Penalty for notice, to remove the metal plate from any machinerynon-removal of which has become his property under section 42, he"'x":'c';lml;l"e from shall be liable to a fine not exceeding fifty rupees. R4 44, Al sums payable under this Chapter shall suns que un- be recoverable in the same way as laons undgr C hap-der this recover- t "ry>able as loans un-
ter IV. ' der Chapter IV,
CHAPTER VI
SUPPLEMENTAL
45. (1) The decision of the '[Centyal Government! pynaiity of ge. as to whether the conditions laid down in or under any f'i'f"é' of Cen- isi i i T over, t of the provisions of this Act have bfen satisfied shal! °"[{ S, ofmgjlr:
the words "State Government" the Punjapin® Rroceedings . ,'sugg?o':flé'}'fmdi'am and Himachal Pradesh) (Adaptatlon of i&hmcnxv'uc and {fig}rsg %xr)x Concurrent and State Subjecte) No.
2 Order, 1968, al Courts,
19
N 972 AID TO INDUSTRIES (1035 : p}, Act v be final, and no suit shall be brought in any civi) court to set aside or modify any order made thereunder,
(2) No prosecution, suit or other proceeding g, lie against any Government officer or othgr authoriyy vested with powers under this Act for anything in good faith done or intended to be done thereunder., '145-A. All loans granted under the Patiala anq Pex;::m.&cl 'xl;d:; Eust Punjab States Union State Aid to Industries Act, 2007 to be deem- 9007 (Act No. II of 2007 Bk.) shall be deemed to b, bt ?fiff"cfed granted under and in accordance with the provisions of this Act and shall be recoverable in the same manner in which loans granted under this Act are
recoverablel.
46. (1) The *[Central Government] may, after e 10 TRk L evious publication, make °rules consistent with {hjs Act for the carrying out of all or any of its purposes.
(2) In particular and without prejudice to the generality of the foregoing power, the *[Central Gov- ernment] may make rules regulating or determining all or any of the following matters, namely— 4[( a) = » * * L) t];
(%) regulating the travelling allowance under
section 10 ; .
(c) the manner of making application for State aid under section 19 i
(d) the delegation of power to give loans under section 20 ;
(e) the form of deed to be executed under sec- tion 21 ;
(1) the nature and amount of the security to be taken under sections 21 and 36 for the due application and repayment of the State aid or rents together with all interests due there- 'fAddegl by Punjab Act No, 23 of 1957,
b
isati Government" by the Punje Reorganisation (Chandigarh angd Himachal Pradesh) {Adaptahon of laws on Concurrent and State Subjects) No, 2 Order, 1968. Punjab Government notification No. 42-1&L-31/ 2766 dated 23rd Jenuary, 1937,
b end 'Clause (1) omitted by the Punjub Reorgantsation (Chandigarh & Himéchal Pradesh) (Adeptation '.ijLu\\'s ox') Coocurrent and Ste'¢ Subjects) Ordey 1666, |
20
1935 : Pb. Act V ] AID TO INDUSTRIES 973 - on, if any, and the rate - of interest at which and the conditions under which State aid may. granted:
Provided that where the security consists wholly or in part of the premises, machinery, stock, stores or other property, present or future, movable or immoveable of the industry con- cerned, then the whole of such property pre- sent and future, moveable and immoveable, may be made liable for the recovery of the loan and all interest due thereon, if any;
(g) the inspection under section 26 of the pre- mises, buildings, machinery and stock-in-hand the mode of keeping and auditing the account and furnishing returns of any industry in res- pect of which State aid has been given;
(h) the manner in and the place at which notices or orders may be served on any borrower;
(i) the form of the declaration to be used under section 24;
(j) the fixing of the period for the repayment of loans;
(k) the application under section 33 of profits in the case in which the conditions on which the State aid has been given, have not been ful- filled;
(1) the appointment and functions of directors ap- pointed by the ![Central Government] under section 34 and the prescribing of other methods of control of industries to which State aid has been given;
(m) the percentage of the cost of machinery to be deposited under section 36;
the words "S_ut_a Government" the Reo;?:r?i:'al&?:d(é%randigarh and Himachal Pradesh) Adaptation o Laws on Concurrent and State Subjects) No. 2 Order, 1968, Pl.u\ln'b
21
-y
974 AID TO INDUSTRIES [1935 : Ph, A¢q v ----- (n) the 'additional 'particulars to 'be-- sp | the order - referred to in section 37 ec:f,fidtfi"
conditions on which machinery may he g i plied on the hire-purchase system; .
(0) the form of the metal plate referred to in clause (e) of section 38;
(p) the form of notice under section 39;
(q) the recovery of any sums payable under this Act; and
(r) all other matters pertammg to the working of this Act.
Repeal. 47, The Punjab Industrlal Loans Act, 1923, is here- 1 by repealed. B g
':'Qa, Lipav 7o
Tk
12987 LR— Govt. Press, Chd.
22