THE PUNJAB STATE AID TO INDUSTRIES ACT, 1935

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. 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 and 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. \ 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 includes 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 Chandigarh, ex- officio ; ISubstituted for the words “Director of Industries Punjab” by the Punjab Reorganisation (Chandigarh and Himachal Pradesh) (Adap- tation of Laws on Concurrent and State Subjects) No. 2, Order, 1968. 2Added by Punjab Act No. 12 of 1959, section 2. sSubstitutetd for the word “Stete Government” by the Punjab Reorganisation (Chandigerh and Himachal Pradesh) (Adaptation 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” by the Punjab Reorganisation imachal Pradesh) (Adaptation of Laws on Concur- ‘State Subjects) Order, 1068, eExisting clauses (6) and (7) renumbered respectively as (8) and (9) by Punjab Act II1 %’m“;"‘%'é““;’&‘ni.‘.fi’a (Chandigarh and Hi 3 by the al eorgani: n handigar] 8- 7Substituted aptation of Laws on State and concurrent Subjec“t‘s) 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, > 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 . provisions 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 member 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” omitted by ibid. 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 1935 Pb. Act V. i : Pb. Act'V.] im 1o INDUSTRIES 9 1 ‘. . undex!fl:?sv:ieg]’ that any person so appointed, [** * * *] time as if b C}:On shall be subject to retirement at the same day on whi i ad become a member of the Board 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 performing any duty assigned to them by the Board for the purposes of this Aci. 11. (1) The Chairman or in his absence the Vice- Ppresident at Chairman shall preside at every meeting of the Board meetings. and shall have a second or casting vote in all cases of equality of votes. (2) In the absence of both the Chairman and the Vice-Chairman the members present 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 Board shall vote on any rterestea guestion coming before the Board for consideration in members not to which (otherwise than in its general application to all vot& persons and properties within the *[Union territory] he had a pecuniary interest. Explanation.—In case of any question arising er has or has not a pecuniary interest, h mem Whe e “he Chairman shall be final. th~ decision O itwwed for the words wprovided further” bv the Punjab Reo;;\‘;\'i‘;;‘ti‘;ne (Chendigarh and Himachal Pradesh) (Adaptation of 1 on Concurrent and State 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. 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 particular m}d withou 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, 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 amount 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 (Adaptation _of Indian Laws) Order, 1937. ‘eé‘_r:hsfi{u'efl for the words “His Majesty 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. 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 1935 : Pb. Act V.] AID TO INDUSTRIES 963 or building constructed with the aid of the 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 made by 2 firm or company the deed shall be executed 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 loan 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 declared immediately repayable under section 27, the officer empowered by the '[Central Government] in this behalf may cause to be served on the borrower a notice in the prescribed manner calling upon him to pay the sums due within such time as may be fixed therein. (2) Such notice shall contain an intimation that in case of default the said officer will issue a declara- tion in the prescribed form showing the amount of the debt due and the property mentioned in the deed as liable to satisfy the same. 24, (1) If within the time so fixed 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 words “State Government” by the Substituted A andigarh and Himachal Predesh) ( dflplatli,:gug rganisation Esgvsgun Concurrent and State Subjects) No. 2 Order, 1968. ... . . 2Substituted_ for the word, “Gazette” hy the. Government of India (Adaptation of Indian Laws) Order, 1937 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 from 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 validity or Alienation of Land Act, 1900, effectiveness of a mortgage executed or of a declara—q tion published under this Act, or the procedure 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. 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 provided for in section 26, is not satisfied that the money lent is being applied to the purpose or purposes for which 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 currency of the loan, the value of the security falls below the outstanding Lalance of the loan, the Director 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 such 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 does not Pemit or obstructs the inspection of the accounts relative to the indnstry or makes default in respect of any of the parti- culars specified in clauses (f:), (d) and (e) of the said section, or if the borrower disposes of any profits in con- travention of the provisions of section 33, the Director mav, after considering any repres‘entatxon the borrower 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 Concurrent 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 —— 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. Within 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. 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 distribute Disposal = of i fits whi - or take any profits in excess of such percentage rate upon 55~ prlinatory the amount of the capital of the industries as the ![Central State aid Is Government] may from time to time fix, until the condi- m& are not tions on which the State aid has been granted are fulfill- ed. . . . : e 34. Notwithstanding anything contained elsewhere con u;rr::m;gded in this Chapter, the '[Central Government] may, by the jrgustry, au-ointment of its own directors or otherwise exercise sfi(l:.h'control over the conduct of the industry to which the State aid has been given as shall suffice in its opinion to safeguard its interests, provided that such right has been expressly reserved by agreement at the 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 Order, 1968. Lawf-sa;b-mu'ed for the old section by Punjab Act, IIT of 1040, section 5. 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 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 Subjects) No. 2 Order, 1968, Conditlons of supply of ma- chinery on hire- purchase system. 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 | 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, 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, | 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 -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.