The Kerala Coir Workers Welfare Fund Act,1987 (Act 34 of 1987)

THE KERALA COIR WORKERS’ WELFARE FUND ACT. 1987 CONTENTS Preamble Sections 1 Short title, extent and commencement. 2 Definitions. 3 Coir Workers’ Welfare Fund Scheme. 4-. Contribution to the fund. 5. Modification of scheme. 6 . Constitution ofBoard. 7 Term ofoffice ofDirectors. 8 Removal of non-official Directors. 9 Appointment ofofficers and stafl' l0 . Power of the Board to borrow. ll Determination ofamount due. 12. Provisional assessment and collection of contribution l3. Mode of recovery Iof money due from coir workers, self-employed. persons, employers, dealers and producers ofcoir products. M- Priority of payment ofcontribution over other debts [5 Employer not to reduce wages etc. 16. Directors of Board etc., to be public servants 17. Penalty. 18 Ofi‘cnces by Companies. 19' Power to PCCUVCF damages. c Protection for acts done m good faith. 21 Diiccuous by Government. 22 Power to order inquiry. 23. Power to supersede the Board. 24. Audit of accounts of the Board and remuneration of auditors. 25 Annual report and audited statement of accounts. 26 Bar of Jurisdiction of civil courts. 27. Special profisrons for transfer of accumulation from welfare funds atabhshed by any Acts or agreement. 23 Removal of difficulties. 29. Power to make rules. The Schedule (L ACT 34 OF 1987 THE KERALA COIR WORKERS’ WELFARE FUND ACT, 1987 An Act to provtdcfor the convolution y-a fund to grant relief to, to promote 2hr welfare of, and to paypenszon to row workers and-self employed persons :72 mar industry in the State of Koala. Preamble—WHEREAS it is expedient to provide for the constitution of a fund to grant relief to, to promote the welfare of, and to pay pension to coxr workers and self employed persons in coir industry to the State of Kerala and for certain other matters incidental thereto; ~ BE it enacted in the Thirty-eighth Year of the Republic of India as follows:— 1. Short title, extent and commemmunt.—(l) This Act may be called the Kcrala Coir Workers’ Welfare Fund Act, 1987. (2) It extends to the whole of the State of Kerala. (3) This section shall come into force at once, and the remaining provisions of this Act shall come into force on such date as the Government may, by notification in the Gazette, appoint; and dJfi'erent dates may be appointed for different provisxons of this Act Provided that the provisions relating to payment of pension shall be deemed to have come into force on the lst day of April, 1987. 2. Dyimtions.—In this Act, unless the context otherwise requires,— (a) “Board" means the Kerala Coir Workers’ Welfare Fund Board constituted under section 6; (b) “Chief Executive Officer” means the Chief Executive Officer appointed under sub-section (1) of section 9; (c) “coxr products” means mats and mattings, rugs and carpets, ropes and other articles manufactured wholly or partly from coir and coir yam; (d) “coir worker” means any person who is employed for wages to do any work in connection with the various processes in coir industry and who gets [us wages directly or indirectly from the employer, dealer or producer of- coxr products and includes any person employed by or through a contractor or through an agent and depends mainly on coir industry for his livelihood, and includes any other person employed in cmr industry, whom the Government may by notification in the Gazette from time to time declare bobeacoir worker for the purposes ot this Act; - 2 Explannlum ——If any question anses as to whetheraperson is or is not a _coir worker f01 the p111pose of this Act, the matter shall be referred to the Government or s 1I l1 ollicms as may be authImsetl by the Government 1n thls behalf wh1ch or w 1.), as t‘I1C1‘ase may be, sh tll 1n consultation With the con- cerned Prop-ct Level -‘1(lv1sn:y Comuuttce of trade muons 111 coir 1ndustry, , constituted f 1. such con prolect mm, for the purpose, take a dec15ion, wluch shall be final. (e) . “cont1ibutinu’ under section 4-; ’ means the sum of money payable to the fund | (f) “dealer” means any pc‘sna who is engaged in the business of purchase sale, or storage fin ~ .lc, of husks or fibre or cotr yarn or any coir products or a person who rets husks and includes an agent of a dealer but does not include a cultivator who sells, or stores for sale, raw husks owned by him; “Director of Coir Development" means the Director of Coir Development for the State of Kerala; (h) “emp loyet” means any person who d1rectly employs, whether on behalf of lumself or for any other person, one 01 mo1e coir workers to do any Work in conneI_ t10n w1th 1ett1ng raw husks, takmg out and counting 1etted l1usks,beat1ng retted husk, cleanmg fibre, spmnmg yam, dyeing, z’Idrytng or bundhng of coir yarn and fibre, rehanking, weaving mats ahd mattlugs, producmg rugs 01 other co1r products, (i) “famlly” means the husband, w1fe and the1r children; (j) “fibre” means c01r fibre extracted from coconut husk; (k) “fund” means the Coir Workers’ Welfare Fund established under section 3 and the scheme; ‘ (l) “husk” means coconut husk, green, dry or retted; (m) “member” means a member of the fund; (11) “person" includes a Company, a firm, an association of 111d1v1duals ora Co-operauve Soc1ety reg1stered or deemed to be registered under the Kerala Co-oper.1tive Soc1et1es Act, 1969 (2l of 1969), (u) prescribed” means prescribed by rules made under this Act; (p) “p1ocesses 1.1 coir industry” means rettmg raw husks, taking out and Co. 1 mm;r retted husk, beating' retted husk, cleaning fibre, spinning am, ClVC‘ 131, drying, bundling coir yarn and fibres, rehankmg, weaving mat. and n1unag‘s, rugs and carpets, or makmg other cotr products, shearing 1Ilalhed proces 1n hmshmg coir products and includes packing, ((1) "producer of mu products” means a person who carries on the busmtss of processmg con and coir products for export or for internal mmketing but does 1ot includeacoir co—opcrattve soc1ety registered or deemed to be registered under the Ker 1h (lo-operative Soc1et1es Act, 1969 (?l oi 1969); (r) “Sched 1k” means the schedule to th1s Act, A .7, 4’ '5. 3 (s) “scheme” means a scheme framed under this Act. (t) “self—employed person" means a person other than a u r workei, who is engaged in the extraction of coir fibie, spinning yarn and manufacture of coir pioclucts for other persons and depends mainly on con industry {br his livelihood, (u) “yarn” means the coir yarn obtained by the spinning of fibre; (v) “year” means the financial year. 3. Coir Workm’ Welfare Fund Schema—(l) The Government may, by notification in the Gazette, frame a scheme to be called the Kerala Con Workers’ Welfare Fund Scheme for the establishment of a fund under this Act for the welfare of the coir workers and self-employed persons in the coir industry and there shall be established, as soon as may be after the framing of the scheme, a fund in accordance With the provisions of this Act and the scheme. ° . (2) There shall be credited to the fund,—— ‘ (a) the contributions specified in section 4; (b) the. amount borrowed by the Board under section 10, (e) damages realised under section 19 ; (d) grants or loans or advances made by the Government of India or the State Government or the Coir Board or any institutions; (e) ' any donations from whatever source; (f) any amount raised by the Board from other sources to augment the resources of the Board; (g) fee levied under the scheme; (h) any other amount which, under the provisions of the scheme, shall be credited to the fund.’ (3) The fund shall vest in, and be administered by the Board constituted under section 6; ' (4) The fund may be utilised for all or any of the followm': purposes, namely:— (a) for paymentofpension,— ‘ (1) to a member who is unable to Work due to oldage or mfirtmty or who has completed the age of sixty years; and (ii) to a person who before the commencement of this Act wasa cotr worker or a self employed person and completed the age of sixty years or who suffers from permanent disablement and is of out of employ- ment; (1)) for payment of family pension to the spouse of adeceased member; (c) for -payment of financial assistance to a member who suffers from permanent or temporary disablement; 4 (d) for payment of loans or grants to amember to meet the day to day expenses during ofi‘ season or to meet expenses for the marriage r-l children or for expenses in connectiOn W'ltll disease ,or death of depen- dents or for expenses in connection with the education of children or for expenses for construction or maintenance of houses, (c) to piov1de maternity benefits to “0an wmkeis engaged in coir industiy who are not eligible for such benefits iithi any nihei law for the time being in force; (f) to provide for distress relief to the family ofa member affected by natural calamities and epidemics; (g) (u prowde for the amt workers, self-employed person-i and members of their families,— " (i) medical faCilities, ' (ii) nurseries and Creches; (iii) education, vocational training and facxlitics for part-time employment ; (h). for implementation of any other purpose specified in the scheme. . (5) Subject to the piowsions of thl: Act, the scheme framed under sub-section (l) may proVide for all or any of the matters specified in sub-secrion (4) and in the schedule. (6) The scheme shall be laid, as soon as may be, after it is framed, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one ssession or in two successive sessions, and if; before the expiry of the session in which it is so laid or the session immediately followmg, the Legislative Assembly makes any modi- fication in the scheme, the scheme shall thereafter have effect only in such modified form, so however that, any such modification shallbe Without prejudice to the validity of anything prCViously done under the scheme 4. Contrzbulzon lo the fun(l.——(l) Every coir wmker and every self employed person shall contribute to the fund one rupee each per month (2) Every employ er other than a cmr co-operative somety shall in respect of each ceir worker contribute to the fund two rupees per month (3) Every ceir eo-operative seeiet) .whieh employees a con worker shall in respect of each such coir workci contribute to the hind one rupee per month Explanatzon —For the put poses of sub-sections (2) and (3), cmr er)- operative seeiety means a soc1ety registered or deemed to be registered undei the Kerala Clo-operative Socmties Act, 1969 (21 of 1969) which is engaged in the process of retting raw husks, beating retted husk and spinmngyarn. (L I‘ II O 5 . ‘ (4) The Government shall contribute to the fund every year an amount equal to tw1ce the amount contributed by the c01r workers and self employed persons by way of grant (5) Every producer of COII‘p'IOduLlS and- every dealer shall contri- bute to the fund an amount equal to one pet cent of their sale proceeds in a year. (6) The contiibution shall be paid to the Chief Executive Officer or to any officer of the Board authorised by the Board in this behalf. (7) Wheie the amount of any contribution payable under this Act involves a fraction of a iupee, the scheme may prov1de for the rounding ofi‘ of such fraction to the nearest rupee. 5. Modzfzcatzonof schema—(1) The Government may, by notification in the Gazette, add to, amend or vary the scheme either prospectively or retrospectively. ' I (2) Every notification under sub-section (l) shall be laid, assoon as may be aftei it is issued, hefOic the Legislative Assembly while it is in sessmn for a total period of fourteen days which may be Comprised in one session Oi in two successwe sessions, and if, before the expiry of the sesSion in which it is so laid or the sessmn immediately following, the Legislative Assembly agrees in making any modification in the noti- fication or deCides that the nOtifitation should not be issued, the noti- fication shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however that any such modification or annulment shall be Without pl‘CJudlCC to the validity of anything pre- viously done under that notification. 6. ComtzlulzonufBomd—4(1) The Government may, by notification in the Gazette, constitute, With effect fiom such date as may be spcmfied theiein a Band to be called ”the Kcrala Coir \Noikers’ Welfare Fund Board” for the adninnstiation of the lurid and to supei'Visef't-r carry out the activities financed lioin the fund. (2) The Boaid shall be a ‘body coxpmate by the name aforesaid, havnig perpetual succession and a common seal' and shall by the said name sue and be sued. (3) The Boaid shalhconmst of such number of Directors not exceedin fifteen in numbei, as may be appotnted by the Government and they shall be chosen in such manner as may be prescnbed' l’i‘OVided thatfifty per cent of the number of Directors shall be from among coir workers 'and self—employed peisons and the ieinainiifg shall reprcse it the Government, employers, producers and/or dealers. U 6 t (4) One of the members of the Board shall be appointed by the Government to be its Chaiiman. (5) The Government shall publish in the Gazette the names of . all the Directors of the Board. PI (6) The Board shall administer the fund vested in it in.such manner as may be specified in the scheme. ' (7) The Board may, With the prewous approval of the Govern- ment, delegate to the Chairman or to any Director of the Board or to the ' Chief Executive Officer, such of its powers and functions under this Act or the scheme as it may consider necessary for the efficient administration of the fund, subject to such restrictions and conditions, if any, as it may specxfy. 7 Tcmzof ofliceof Directors—41) A Director appointéd under sub section (3).of section6 shall hold office for a period ofthree years. (2) NotWithstanding anything contained in section 8, the Govern- ment may, at any time, for reasons to be recorded in writing, remove from office any Director of the Board after giving him a reasonable oppor- tunity of showmg cause against the prop05ed removal: l’rowdcd that it shall not be necessary to record in writing the [1.4.5011 fm the removal or to give an opportunity of showmg cause against the proposed ienioval, ii the Government are ‘uf the opinion that it is not mpechem, in the public interest, to iecord the reasons in writing or to give such opportunity. \ (3) Anv Director may reSign his membership by givmg notice in wnting to the Govcmment, but shall continue moifice until his resignation is accepted by the Government. '8. Removal anmz-tyjficzal Dzreclor5.——(l) The Government may, by .ntification in the Gazette, remove any non—otheial Director of the Board from olfice,——- (a) if He has, Without the permission of the Board, been absent {10111 the ineetings‘of the Board for three consecutive meetings: PiOVided, howeva, that such absence may be condoned by the Board before the publication of the notification in the Gazette; . C (b) if he, in the opinion of the Government, 18 unsuitable or has become incapable of acting as a Director or has so abused his position as a Director as to render his continuance as such Director detrimental to the public interest: Prov1dcd that before removing a Director under this sub-section, he shall be given a reasonable opportunity to show cause why he should not be i emovcd. O W \I-_ Ii if . 9 (2) A non-official Director of the Board removed under clause(a) of sub-section (1), shall be disqualified for reappointment as a Director of the Board for a. period of three years from the date of his removal unless otherwise ordered by the Government. (3) A non-official Director of the Board removed under clause(b) of sub-section (1) shall not be eligible for reappointment until he is declared by an order of the Government robe no longer ineligible. I 9. Appomtmcnt ofofiicersandstajf—(l) The Government may appoint a Chief Executive Officer and such number of other officers and staff as they cons1der necessary to assust the Board in the discharge of its fun- ctions and duties under thlS Act. (2) Subject to the prov1snons of sub-section (3), the method of appointment, salary and allowances, discipline and the other conditions of service of the Chief EXCCuthC Oflicer and the other oflicers and staff appointed under sub-section (1) ,shallbe such as may be prescribed. . (3) In the case of posts 111 the service under the Board to which appointment is made by direct recruitment,— (a)' fifty per cent shall be reserved for appointment from can- didates belonging to the families of coxr workers and self-employed persons; and (b) fifty per cent shall be filled in accordance with the procedure laid down in the Kcrala State and Subordinate Servrde Rules, 1958. 10. Power of the Board to banana—«The Board may, from time to time, With the previous approval of the Government and subject to such terms and conditions as may be specxficd by the Government, borrow money for the purposes of the scheme. 11. Determinatzon ofamount due.——(l) The Chief Executive Officer or any other officer authorised by the Board in this behalf, may, after making such enquiry as may be necessary and after givmg every person hable to_ pay contribution under section 4, an opportunity to be heard, by order determine the amount due from every employer or dealer or producer of coir products under the provrsions of this Act or the scheme. (2) The officer conductmg the enquiry under sub-scct10n(l), shall, for the purposes of such enquiry, have the same powcts as are vested m a civrl court while trying a suit under the Code 01 Civrl Procedure, 1908 (Central Act 5 of 1908), In respect of the followmg matters, namely:— (a) enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and productinh ofdocuments ; 33152521MC. 8 . u- (c) receiving evidence on affidavit; (d) 1s_su1ng commissmns for the exanunation of witnesses. (3) Any enquiry under this section shall be deemed to be a Jud1c1al proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of 1860) and for the purpose of sec1i0n”196 of the said Code. , (4») Any person aggrieved by an order under sub-section (1) may, ' withmthi1ty days from the date of rece1pt of'the order, prefer an appeal to the Director of 0011' Development or to an officer not below the rank of a project officm auth'onsed by h1m 1n th1s behalfand the D1recto1' of Cou‘ Develop— ment 01 the ofiicm authorised by him may, after making such enquiry, pass such,orders thereon as he th1nks fit. (5) lhe Government may, either suo motu, or on application of- the aggneved person, call for the records of any proceedings.taken by the Director of Coir Development or the officer aiithorised by him under sub-section (4) andmake such enquiry. and. pass suchiorders, asetheyideem fit: Prowdcd that an apphcauon for 1evision under this sub-section shall be made‘withm th1rty days-from the date onwh1ch. theorder was communicated to the- applicant: '~. Prov1ded furthe1 that no 10rd61‘ shall be passed under this sub-section without givmgchenperson whomaybeaffected thereby, an opportunity t01 be heard 12. Provisional assessment and collectwn of, contribution.—(1) Every [emplo- yer or dealer 01 p1oducer of coir products liabletopay contributionunder sect1on- 4 shall, pending determmauomunder section ll of the amodnt due from him, pay on or before the 5th day of every month, an amount equivalent to one twelfth of the amount payable annually by him according to the latest determinauon under the said section. (2) The contribution for a month due from a mu worker or self-em- ployed person shall become payable on oribeforcthe 5th day of the succeeding month. (3) Where the conmbution 15 not paid on or before the due date, the Chief Executive Officer or any office1 of the Board authorised by itin this behalf, shall 1ssue a notice to the defaulter showmg the an’iount of.arrears, and 1f the amount 15 not paid within fifteen days of the receipt ofsuch notice, it may be rccove1ed'111 the same manner as arrears of public revenue due on land. ' (4) The amount pa1d undet Sub--scet1on (l) by an employer or dealer” or producer of con products for a year shall be adjusted against the amount determined undc1 section 11 for that year. f r a 1 n s. _ % 13. Made of recovery of money due from coir workers, self-emploted pen—ans, omp'loyerndealer: and producers of coir product5.——Any amount due from the coir workers, self-employed persons, employers, dealers and producers of coir products in pursuance of the provisrons of thrs 'Act or the Scheme may, if the amount is in arrears, be recovered in the same manner as an arrcar of. ‘public revenue dire on land. 14-. Priority of payment ofcontribution 0051' other deth—iWhere any employer or dealer or producer of coir products liable to pay contributions under se'ctron 4 is adjudicated as insolvent or, in case such employer or dealer or producer of coir products is a company, an order for winding up is inade, the amount due from such employer or dealer or producer of coir products under this Act or the scheme shall, where the liability therefor has accrued belhre the order of adjudication or winding up rs made, ,‘be deemed to be included among the debts which under section 64 ofthe Insolvency Act, 1955 (2 of 1956) or under section 530 ofthe Companies Act, 1956 (Central Act 1 of1956) are to be paid in priority to all other debts ‘in the distribution of the property ofthc insolvent or the assets of the company being wound up, as the case may be 15. Employer not to reduce wages eta—No employer or dealer or producer of coir products shall by reason only of his liability for the payment of any contribution to the fund, reduce whether directl or indirectly. the wages of any coir worker to whom the scheme applies or the total quantum of benefits to which the coir worker is entitled under the terms ofhrs employment express or implied. , l 16. Directors y” Board etc, to be. publzc servants —-l£vcry Director of the Board, the Chief Executive Officer and other officers and members 01 the staff ofthe Board appointed under sub-sectrtin (1) ofsectron 9 shall be deemed to be a public servant within .the meaning of section 21 of the Indian 'Penal Code (Central Act 45 of 1860). ' . l7 Penalty -—(1) Whoever, for the purpose of avordrng any payment to be made by himself under this Act or under the scheme or of enabling‘any other person to avord such payment knowrngly makes or causes to be made any false statement or false representation, shall be punishable with imprison- ment for a term which may extend to three months, or wrth fine \Vthh may extend to five hundred rupees, or with both , (2) Whoever contravenes or makes default in complying With any of the provisions of this'Act or of the scheme shall, if no other penalty is else- where provided by or under this Act for\Such contravention or non-compliance, be punishable with imprisonment for a term which may extend to two months or with fine which may extend to four hundred rupees, or with both. , .(3) No court‘inferior to that of a Judicial Magistrate of the Fu‘st Class shall try any offence punishable under this Act. ~10 (4) No court shall take cognizance of any ofi'ence punishable under this Act except on a ieport in writing of the facts constituting such ofl'ence made With prev1ous sanction of the Chief Executive Oflicer. l8. Offincrr by Companion—(l) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the ofl‘ence and shall be liable to be proceeded against and punished accordingly. Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such ofi'encc. (2) Notw1thstand'mg anything contained in sub-section (1), where any offence under this Act has been committed by a company andit is proved that the ofl‘ence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any officer of the company, such officer of the company shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purpOse of this section,—- (a) “company” means any body corporate and includes a firm, co-opei alive soc1ety 01 other assoc1ation of indwiduals ; (1)) “office: of the company” means the Managing Director, Director, Managing Agent, Secretary, Tieasurer or Manager of the company and includes the ollice bearer. of a flim, co-Operative society or other association of individuals. 19. Power [1) mover damages -—-Where any person makes default in the payment of any contribution to the fund under this Act or the scheme, the Board may recover from him damages, not exceeding twentv-five per cent of the amount ofan em as they may think fit to impose. 20. Pratechon Jm acts done in good faith.——No suit 01 other legal pro- ceedmg shall lie against any Director of the Boaid or any other person in respect of anything whichis in good faith done or intended to be done under this Act 01 under the scheme. 21. Dzrcclzom by Government.—(1) The Government may, after consulta- tion wnh the Board, give to the Board general directions to be followed by he Board. (2) In the exercise of the poweis and performance ofits duties under this Act, the'Board shall not depart from any general directions issued under sub-section 11) except with the previous penmssxon of the Government. A ( if l- W...“ (r, g: It 22. ?ower to order {main-41) The Government may, at any time, appoint any person to inquire into the working of the Board and to submit a report to the Government. (2) The Board shall give the person so appointed all facilities for the proper conduct of the inquiry and furnish to him such documents, accounts and information in the possession of the Board as he may require. In 23. Power to supersede the Board ——(I) If, on consideration of the report under section 22 or otherwise, the Government are of opini m that the Board has persistently made default in the performance of the duties imposed on it by or under the provisions of'this Act or the scheme or has exceeded or abused its powers, the Government may, by notification in the Gazette, supersede the Board for such period not exceeding six months as may be specified in the notification: Provided that before issuing a notification under this sub-section, the Government shall give a reasonable opportunity to the Board to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Board. (2) Upon the publication of a notification under sub-section (l),-——. (a) all the Directors of the Board shall, as from the date of such publication, vacate their offices as such Directors; (b) all the powers and duties which may be exercised or performed by the Board shall, during the period of supersession be exercised or per- formed by such officer or officers as may be specified in the notification; (c) all funds and other properties vested in the Board shall, during the period of supersession, vest in the Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (l),the Government shall reconstitute the Board in the manner pIOVldCd in section 6. 24. Audzt of account: of the Board and remuneration of audttom—(l) The Government shall appomt auditors to audit the accounts of the Board. (2) The Board shall pay to the said auditors such remuneration as the Government may direct. (3) The accounts of the Board shall be examined and audited once in every year by such auditors. ' 25. Annual report and audzted statement ‘Qf accounts.—(l) The annual re rt oi the Board shall be prepared under the direction of the Board and a ter approval by the Board, a copy of the report shall be submitted to (Savoy. went before the end of July every year. r. O