West Bengal Khadi and Village Industries Board Act, 1959

West Bengal Khadi and Village Industries Board Act, 1959 (PDF) West Bengal Khadi And Village Industries Board Act, 1959 1. Short title, extent and commencement. 2. Definitions. 3. Establishment of the Board. 4. Constitution of the Board. 4A. Disqualification to become a member of the Board. 5. Officers of the Board. 6. Terms and conditions of office of the officers and members of the Board. 7. Resignation. 8. Casual vacancies and savings as to proceedings of the Board. 9. Appointment of other officers and employees of the Board. 10. Transfer of rights and liabilities of the State Government to the Board. 11. Meetings of the Board. 11A. State Government may depute officers in the meetings of the Board. 12. Functions of the Board. 13. General powers of the Board. 14. Special powers of the Board to grant loans and advance grants. 14A. Power to delegate. 14B. Constitution of standing finance committee and other committees and electing their members. 15. Annual programme of the Board. 16. Supplementary programme. 17. Budget. 18. Supplementary budget. 19. Restrictions as to expenditure. 20. Transfer of property. 21. Funds of the Board. 22. Grants and loans to the Board. 23. Application of funds and properties. 24. Accounts and audit. 25. Loans and unutilised grants by the Board to be recoverable as public demand. 26. Annual report. 27. Further report. 28. Directions by the State Government and advice and guidance of experts. 29. Members, officers and servants of the Board to be public servants. 29A. Void resolution. 30. Indemnity. 31. Dissolution of the Board. 31A. Vesting of assets and liabilities of the Board after its dissolution. 32. Power to make rules. 33. Power to make regulations. West Bengal Khadi And Village Industries Board Act, 1959

West Bengal Act 14 of 1959

WB424

[29th October, 1959.]

An Act to provide for the establishment of a Board for the organisation, development and regulation of khadi industries and village industries in the State of West Bengal and certain matters connected therewith.

Whereas it is expedient to provide for the establishment of a Board for the organisation, development and regulation of khadi industries and village industries in the State of West Bengal and certain matters connected therewith;

It is hereby enacted as follows :-

1. Short title, extent and commencement.- (1) This Act may be called the West Bengal Khadiand Village Industries Board Act, 1959.

(2) It extends to the whole of West Bengal.

(3) It shall come into force on such date as the State Government may, by notification in theOfficial Gazette, appoint.

2. Definitions.- In this Act unless there is anything repugnant in the subject or context, -

(a) "the Board" means the West Bengal Khadi and Village Industries Board established under section 3;

[(aa) "Co-operative Society" shall have the same meaning as in the West Bengal Co-operative Societies Act, 1973;]

(b) "khadi" means any cloth, woven on handlooms in India from cotton, silk or woollen yarn hand-spun in India or from a mixture of any two or all of such yarns;

[(bb) "Khadi and Village Industries Commission" means the Khadi and Village Industries Commission established under section 4 of the Khadi and Village Industries Commission Act, 1956;]

(c) "prescribed" means prescribed by rules made under this Act;

[(d) "Village Industries" means the industries specified in the Schedule and as recognised by the Khadi and Village Industries Commission from time to time including such other industries as the State Government may, from time to time by notification in the Official Gazette, specify in this behalf;]

[(e) "Year" means a financial year.]

3. Establishment of the Board.- (1) As soon as may be, after the commencement of this Act, a Board, to be called the West Bengal Khadiand Village Industries Board, shall be established by the State Government for the purposes of this Act.

(2) The Board-shall be a body corporate having perpetual succession and a common seal and may, by the said name, sue and be sued.

[4. Constitution of the Board. - (1) The Board shall consist of such number of members not exceeding eleven, as the State Government may, by notification in the Official Gazette, appoint, of whom :-

(a) one shall be the Secretary, Development and Planning Department, Government of West Bengal, or his nominee not below the rank of a Deputy Secretary of the State Government;

(b) one shall be the Secretary, Cottage and Small Scale Industries Department, Government of West Bengal, or his nominee, being an officer dealing with Khadi and Village Industries matters, not below the rank of a Deputy Secretary of the State Government;

(c) one shall be the Secretary, Finance Department, Government of West Bengal, or his nominee, not below the rank or a Deputy Secretary of the State Government;

(d) one shall be the Director, Cottage and Small Scale Industries, Government of West Bengal or his nominee, not below the rank of a Joint Director;

(e) such number of non-officials who in the opinion of the State Government have shown active interest in the production and development of Khadi or Village Industries:

Provided that at least one of the non-official members so appointed, shall be a person belonging to a Scheduled Caste or Scheduled Tribe, the words "Scheduled Caste and Scheduled Tribe" having the same meaning as defined in the Constitution of India.

(2) One of the members of the Board shall be appointed by the State Government as the Chairman of the Board and the names of the Chairman and other members of the Board, shall, as soon as may be, after appointment, be published in the Official Gazette.

(3) The State Government may appoint one of the other members of the Board as the Vice-Chairman who shall exercise such of the powers and perform such of the duties of the Chairman as may be prescribed or as may be delegated to him by the Chairman.]

[4A. Disqualification to become a member of the Board. - A person shall not be qualified to be a member of the Board if he is a member of a Co-operative Society or a Registered Institution who individually or which after having received assistance from the Khadi Commission/Board has defaulted in making punctual repayment. If after appointment it comes to the notice of the Government that any member of the Board attracts the above disqualification, the Government shall cancel his appointment and may make new appointment in his place.]

[5. Officers of the Board. - The State Government shall, in consultation with the Board,-

(a) appoint a person not being a member of the Board to be the Chief Executive Officer of the Board;

(b) appoint a person not being a member of the Board to be the Secretary of the Board;

(c) appoint a person not being a member of the Board to be the Financial Adviser of the Board, who shall also function as Chief Accounts Officer.

The Chief Executive Officer, Secretary, and the Financial Adviser and Chief Accounts Officer will be wholetime employees of the Board.]

[6. Terms and conditions of office of the officers and members of the Board. - (1) The terms and conditions of the office of the Chairman, the Vice-Chairman, other members of the Board, and of the Chief Executive Officer, the Secretary, and the Financial Adviser and Chief Accounts Officer of the Board shall be such as may be prescribed :

Provided that members of the Board including the Chairman and the Vice-Chairman shall be eligible for re-appointment.

(2) The Government may entrust the Vice-Chairman or any other member of the Board temporarily with the power and duties of the Chairman when the latter is unable to discharge the duties of his office due to illness or other reasons.

(3) The non-official members of the Board shall be paid such honorarium and allowances from the funds of the Board as may be prescribed.]

7. Resignation.- The Chairman or any other member of the Board may resign his office by giving notice in writing to the State Government and shall, on such resignation being notified in theOfficial Gazetteby the State Government, be deemed to have vacated his office on and from the date on which the resignation is so notified.
8. Casual vacancies and savings as to proceedings of the Board.- (1) Casual vacancies among the members of the Board shall be filled up by the State Government by appointment of new members :

[Provided that where a casual vacancy arises amongst the members belonging to the class referred to in clause (e) of sub-section (1) of section 4, the new member to be appointed shall belong to that class.]

(2) No act or proceeding of the Board shall be deemed to be invalid merely by reason of the existence of any vacancy in the Board or any defect or irregularity in the appointment of any member or in the constitution of the Board.

[9. Appointment of other officers and employees of the Board. - (1) Subject to such rules as may be made under this Act, the Board may appoint such other officers and employees as it considers necessary for the efficient performances of its functions under this Act:

Provided that, -

(a) no post of officers or employees shall be created, and

(b) no post above Group 'C' or 'D' shall be filled up, except with the previous approval of the State Government, the classification of the groups having relation to the pay scales as approved by the Government for State Government employees under the West Bengal Services (Revision of Pay and Allowance) Rules, 1981.

(2) The conditions of service relating to leave, pay and allowances, medical benefits and house rent of officers and employees of the Board shall be such as are admissible to similar category of State Government employees.]

10. Transfer of rights and liabilities of the State Government to the Board.- (1) On the establishment of the Board the State Government may, by notification in the Official Gazette, transfer to the Board the rights and liabilities of the State Government in relation to such khadiindustries or village industries as may be specified in the notification.

(2) On the issue of a notification under sub-section (1) all liabilities incurred, all contracts executed and all matters and things engaged to be done by the State Government at any time before and up to the date of publication of the notification, in connection with the organisation, development or regulation of the khadi industries or the village industries specified in the notification, shall, on and from the date of publication of the notification, be deemed to have been incurred, executed or engaged to be done by the Board, and in all suits and other legal proceedings instituted by or against the State Government in connection with the aforesaid industries before and up to the date of publication of the notification, the Board, shall, on and from such date, be deemed to be substituted for the State Government.

11. Meetings of the Board.- (1) The Board shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by regulations made by the Board under this Act :

Provided that the Board shall meet [once in every two months].

(2) The Chairman, or, in his absence, any member chosen by the members present from amongst themselves shall preside at a meeting of the Board.

(3) All questions at a meeting of the Board shall be decided by a majority of the votes of the members present and in the case of equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.

[11A. State Government may depute officers in the meetings of the Board. - The State Government may depute one or more of its officers to attend the meetings of the Board and to take part in the proceedings thereof, but he or they shall have no right to vote in such meetings.]

12. Functions of the Board.- (1) The Board shall generally organise, develop and regulate khadiindustries and village industries and discharge such other duties and perform such other functions as the State Government may direct for the purpose of carrying out the objects of this Act, but it will not be a trading corporation [except to the extent necessary for carrying out the objects of this Act, particularly relating to promotion and development].

(2) In particular and without prejudice to the generality of the foregoing provisions, the Board may take such steps as it may think fit to-

(a) establish, encourage, assist and carryon khadi industries and village industries;

(b) help the people [individually or collectively] by providing them with work in connection with the industries established or carried on by it, which they can perform in their homes, and give them such financial assistance as they may need for such work;

(c) encourage the establishment of Co-operative Societies for khadi industries and village industries;

(d) maintain training centres and train people at such centres or arrange for their training at centres outside the State of West Bengal with a view to equip them with necessary knowledge for establishing or carrying on khadi industries and village industries;

(e) arrange for providing raw materials, tools and implements to persons engaged in khadi industries and village industries and for the sale of the finished products of such industries;

(f) arrange for giving publicity to, and popularising, the finished products of khadi industries and village industries by opening stores, shops and emporiums or organising exhibitions;

(g) educate the public and impress upon them the advantages of patronising the products of khadi industries and village industries;

(h) conduct or encourage research work in connection with khadi industries and village industries;

(i) maintain or assist in the maintenance of institutions for the development of khadi industries and village industries;

[(j) manufacture tools and implements required for the development of Khadi and Village Industries and the finished products of such industries;]

[(k) to discharge such other duties and perform such other functions as the State Government may direct from time to time for the purpose of carrying out objects of this Act.]

13. General powers of the Board.- The Board shall, for the purpose of carrying out its functions under this Act, have the following powers, namely :-

(a) to acquire and hold such movable and immovable property as it deems necessary and to lease, sell or otherwise transfer any such property :

Provided that in the case of immovable property such powers shall not be exercised without the previous sanction of the State Government:

[Provided further that in the case of acquisition of immovable property on lease up to 20 years, prior approval of the State Government shall not be necessary].

(b) to incur expenditure in discharging its functions under this Act;

(c) to enter into any contract and to do all things necessary for the purposes of this Act;

(d) to write off losses subject to such conditions as may be prescribed.

14. Special powers of the Board to grant loans and advance grants.- The Board may, for the purpose of effectively carrying out its functions under this Act,-

(a) advance loans on such terms and conditions as may be prescribed, and

(b) make grants for the executive of specific schemes.

[14A. Power to delegate. - (1) The Board may by resolution delegate, with the previous approval of the State Government, all or any of its powers under this Act (except the power to make regulations) to the District Industries Centres or to such agencies as the Board may specify in this behalf for efficient implementation of the purposes of this Act.

(2) The District Industries Centres or the agencies referred to in sub-section (1) shall, for the promotion of khadi and village industries under this Act, be entitled to such co-operation of the Board and such assistance of its employees as they may require.]

[14B. Constitution of standing finance committee and other committees and electing their members. - For the purpose of effectively carrying out its functions under this Act, -

(a) the Board shall constitute a Standing Finance Committee to exercise such powers and perform such functions relating to finance of the Board as may be prescribed. The Chief Executive Officer and the Financial Adviser and Chief Accounts Officer of the Board shall be the ex officio members of the Standing Finance Committee, while three non-official members shall be selected from amongst the members of the Board;

(b) the Board may from time to time, constitute from amongst its members one or more committees, for efficient discharge of its duties, imposed upon it under this Act. The Board may also co-opt persons not exceeding two, having special knowledge in Khadi or Village Industries in each such committee.]

15. Annual programme of the Board.- (1) In each year, by such date and in such form as may be prescribed, the Board shall prepare and forward to the State Government a programme of the work it proposes to undertake or continue during the following year in the discharge of its functions referred to in section 12 together with a Schedule of the staff of officers and servants already employed and to be employed in the following year by the Board.

(2) The programme shall contain -

(a) particulars of any scheme or any work which the Board proposes to execute during the following year;

(b) particulars of any undertaking which the Board proposes to organise during the following year;

(c) such other particulars as may be prescribed.

(3) The State Government may sanction the programme and the Schedule of staff of officers and servants with such modification as it deems fit.

16. Supplementary programme.- The Board may in any year prepare and forward to the State Government for its sanction a supplementary programme in such from and by such date as may be prescribed and the provisions of sub-section (3) of section 15 shall apply to such supplementary programme.
17. Budget.- (1) The Board may in each year, by such date and in such form as may be prescribed, prepare and submit to the State Government for its approval two separate budgets for the following year to be called the KhadiBudget and the Village Industries Budget showing the estimated receipt and expenditure in respect of khadi industries and village industries, respectively, during that year.

(2) The State Government may sanction the budgets submitted to it with such modification as it thinks fit.

18. Supplementary budget.- The Board may in any year submit to the State Government for its sanction a supplementary budgets in such form and by such date as may be prescribed and the provisions of sub-section (2) of section 17 shall apply to such supplementary budget.
19. Restrictions as to expenditure.- (1) Subject to the provisions of sub-sections (2) and (3), no sum shall be expended by or on behalf of the Board unless the expenditure is covered by a specific provision in the budget sanctioned by the State Government.

(2) The Board may, within such limits and subject to such conditions as may be prescribed, sanction any re-appropriation from one head of expenditure to another or from the provision made for one scheme to the provision made for another.

(3) Notwithstanding anything contained in sub-section (2), no re-appropriation -

(a) from the Khadi Budget to the Village Industries Budget or from the Village Industries Budget to the Khadi Budget, or

(b) from the head "loan" to another head of expenditure or from another head of expenditure to the head "loan" in either budget,

shall be sanctioned by the Board without the previous approval of the State Government.

20. Transfer of property.- The State Government may transfer to the Board, buildings, land or any other property movable or immovable for the use of, and management by, the Board for the purposes of this Act on such terms and conditions as the State Government may impose.
21. Funds of the Board.- (1) The Board shall have two separate funds to be called "the KhadiFund" and "the Village Industries Fund" and all grants and advances made to the funds, from time to time, by the State Government for the purpose of organisation, development or regulation ofkhadiindustries or village industries and all other receipts of the Board shall be credited to theKhadi Fund or the Village Industries Fund, as the Case may be, and all payments by the Board in respect of khadi industries or village industries shall be made from the appropriate fund.

(2) All monies belonging to the Board shall be deposited in such custody and in such manner as the State Government may, by special or general order, direct.

(3) The accounts of the Board shall be operated, either jointly or severally as the Board may direct by order made in this behalf, by the Secretary and such other officer or officers of the Board as it may authorise.

22. Grants and loans to the Board.- [(1) The State Government may, from time to time, make grants and advance loans, including ways and means advances, to the Board for the purposes of this Act, on such terms and conditions as the State Government may determine.]

(2) Subject to the provisions of this Act and the rules made thereunder, the Board may borrow any sum required for the purposes of this Act.

(3) The Board may accept grants, subventions, donations or gifts from the Government or a local authority or any individual for all or any of the purposes of this Act.

23. Application of funds and properties.- All properties, funds and other assets of the Board shall be held and applied by it subject to the provisions of, and for the purposes of, this Act and not otherwise.
24. Accounts and audit.- (1) The accounts of the Board shall be maintained and an annual statement of accounts shall be prepared in such form and manner as may be prescribed.

[(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India in terms of the provisions of the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971.]

[25. Loans and unutilised grants by the Board to be recoverable as public demand. - Any sum payable to the Board either in the form of loan or grant with any interest chargeable thereon, including any portion of such sum remaining unutilised for the purposes for which the loan or grant had been made under any agreement expressed or implied, shall, without prejudice to any other mode of recovery, be recoverable as a public demand.]

26. Annual report.- [Within six months]of the end of every year, the Board shall prepare and forward to the State Government in such form and manner as may be prescribed, an annual report giving a complete account of its activities during such year.

(2) A copy of every report forwarded to the State Government under sub-section (1) shall, as soon thereafter as possible, be laid before the State Legislature.

27. Further report.- The Board shall, by such date, at such intervals and in such form and manner as may be prescribed, submit to the State Government such further report containing such particulars as may be prescribed.
28. Directions by the State Government and advice and guidance of experts.- (1) In the discharge of its functions under this Act the Board shall be guided by such directions on questions of policy as may be given to it from time to time by the State Government.

Explanation. - If any question arises whether a question is a question of policy or not, the decision of the State Government shall be final.

(2) Subject to any direction of the State Government, the Board may seek and obtain the guidance and advice of experts in khadi industries and village industries for performing its functions under this Act.

29. Members, officers and servants of the Board to be public servants.- Members, officers and servants of the Board shall, when acting or purporting to act in pursuance of any provisions of this Act, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

[29A. Void resolution. - Any resolution passed by the Board which contravenes any provision of this Act and the rules and regulations framed thereunder or any directive issued by the State Government under section 28 of this Act shall be void and be of no effect.]

30. Indemnity.- No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder.
31. Dissolution of the Board.- (1) If at any time the State Government is satisfied, [* * * * * *]that -

(a) the Board has, without reasonable cause or excuse, made default in the performance of its duties or in the discharge of its functions, or exceeded or abused its powers, or

(b) circumstances have arisen due to which the Board is or may be rendered unable to discharge its function under this Act, or

(c) it is otherwise expedient or necessary to dissolve the Board,

the State Government may, by notification in the Official Gazette, make an order [stating the reasons therefor] dissolving the Board on and from such date and for such period as may be specified in the order and declaring that the duties, functions and powers of the Board shall, during the period of dissolution, be performed, discharged and exercised by such person or authority as may be specified in the order.

(2) If in any case, the State Government so thinks fit, it may, by notification in the Official Gazette, make an order extending the period of dissolution of the Board.

(3) On the dissolution of the Board under this section, suits, prosecutions and other legal proceedings for or against the Board shall, during the period of dissolution, be instituted, defended or continued by the person or authority specified in the order under sub-section (1) in the name of the Board in like manner as immediately before the dissolution of the Board.

(4) The State Government shall, before the expiration of the period of dissolution, reconstitute the Board in accordance with the provisions of section 4.

(5) The State Government may make such incidental or consequential order or orders as may appear to it to be necessary for giving effect to the Order made under sub-section (1).

(6) No suit shall lie against the State Government for any order made by it under this section.

[31A. Vesting of assets and liabilities of the Board after its dissolution. - On dissolution of the Board, its assets and liabilities shall vest in the State Government.]

32. Power to make rules.- (1) The State Government may, by notification in the Official Gazette, make rules to give effect to the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely:

(a) the terms and conditions of office of the Chairman, the Secretary and the other members, and of the Executive Officer, of the Board including the salaries, honoraria and allowances to be paid to them;

(b) disqualification for membership of the Board and the procedure to be followed in removing a member who is or has been subject to any disqualification;

(c) the procedure to be followed by the Board in the discharge of its functions under this Act;

(d) the powers to be exercised and the duties to be performed by the Secretary and the Executive Officer of the Board;

(e) the procedure to be followed and the conditions to be observed by the Board in borrowing money, advancing loans and making grants;

(f) the conditions subject to which and the mode in which contracts may be entered into by or on behalf of the Board;

(g) any other matter which is required to be or may be prescribed or provided for by rules.

33. Power to make regulations.- (1) The Board may, with the previous sanction of the State Government, by notification in the Official Gazette, make regulations not inconsistent with the provisions of this Act or of the rules made thereunder for enabling it to discharge its functions under this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely :-

(a) the terms and conditions of appointment and service and the salaries and allowances of officers and [employees] of the Board, other than the Secretary and the Executive Officer of the Board;

(b) the time and the place of meetings of the Board, the procedure to be followed in regard to transaction of business at such meetings and the quorum necessary for transaction of business;

(c) the delegation of powers and duties of the Board to the Secretary or the Executive Officer or any other employee of the Board;

(d) the maintenance of minutes and proceedings of the meetings of the Board and the transmission of copies thereof to be State Government;

(e) the persons by whom payments, deposits and investments may be made on behalf of the Board;

(f) subject to the provision of sub-section (2) of section 21, the custody of monies required for the current expenditure of the Board and investment of monies not so required.

[The Schedule

[See section 2(d).]

1. Bee-keeping.
2. Cottage match industry.
3. Cottage pottery industry.
4. Cottage soap industry (using non-edible oil).
5. Flying, curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry.
6. Ghani oil industry.
7. Handmade paper.
8. Manufacture of cane gur and khandsari.
9. Palm gur making and the palm products industry.
10. Processing of cereals and pulses.
11. Blacksmithy.
12. Carpentry.
13. Fibre (other than coir).
14. Cane and bamboo industry.
15. Lime manufacturing industry.
16. Manufacture and use of manure and methane gas from cow dung and other waste products.
17. Fruit processing and preservation industry.
18. Manufacture of shellac.
19. Collection of forest plants and fruits for medical purposes.
20. Manufacture of household utensils in Aluminium.
21. Manufacture of Gum and resins.
22. Manufacture of Poly Vastra.
23. Manufacture of Lok Vastra.]