LexThe Himachal Pradesh State Aid to Industries Act, 1968
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH STATE AID TO INDUSTRIES ACT 1968
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ESTABLISHMENT OF BOARD OF INDUSTRIES AND
MATTERS CONNECTED THEREWITH
3. Establishment of Board ofIndustries.
4. Procedure in default of election of members.
5. Vice-Chairman.
6. Election or appointments to be notified in the Official Gazette.
7. Term of office.
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. Duty of Board.
16. Documents and reports to be furnished to the State 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. Application for State aid.
CHAPTER IV
PROVISIONS REGULATING THE GIVING OF STATE AID
OTHERWISE THAN BY THE SUPPLY OF MACHINERY ON
THE HIREPURCHASE SYSTEM
20. Power to grant loans.
21. Security for repayment.
22. Loan how repayable.
23. Notice to pay.
24. Effect of declaration. .
25. Execution of declaration.
26. Inspection and returns.
27. Penalty for default in applying the loan.
28. Power to adjust security during currency of loan.
29. Power to recover loans.
30. Appeal.
31. Government guarantee ofa minimum return.
32. Subsidies.
33. Disposal of profits when conditions on which State aid is given
arenot fulfilled.
34. Government control of aided industry.
35. Method of recovery of money due.
CHAPTER V
SUPPLY OF MACHINERY ON HIRE-PURCHASE SYSTEM
36. Percentage of cost to be deposited by hirer.
37. Particulars to be specified in order when application is allowed.
38. Conditions of supply of machinery on hire-purchase system.
39. Consequence of default by hirer.
40. Option of hirer to purchase machinery seized for default.
41. Liability of hirer on termination of hiring under section 39.
42. Termination of hiring on payment of cost of machinery.
43. Penalty for non-removal of metal plate from machinery.
44. Sums due under this Chapter recoverable as loans under Chapter
IV.
CHAPTER VI
SUPPLEMENTAL
45. Finality of decision of State Government and bar of suits and
proceedings in civil and criminal courts.
46. Power to make rules.
47. Repeal and Savings.
THE HIMACHAL PRADESH STATE AID TO INDUSTRIES ACT,
1968
(ACT NO. 2 OF 1971)1
(Received the assent of the President of India on the 20thJanuary,
1971, and was published in R.H.P. Extra, dated the 26thApril, 1971, at P. 263-
275.)
Amended, repealed or otherwise affected by-
(i) A.O.1973, published in R.H.P. Extra., dated the 20thJanuary,
1973, P. 91-112.
(ii) H.P. Act No. 27 of 1978 assented to by the Governor on 31st May.
An Act to encourage the development if industries in Himachal Pradesh
by the grant of State aid.
BEit enacted by the Legislative Assembly of Himachal Pradesh in the
Twentieth Year of the Republic of India as follows: -
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.-(1) This Act may be
called the Himachal Pradesh State Aid to Industries Act, 1968.
(2) It extends to the whole of Himachal Pradesh.
(3) It shall come into force on such date2 as the State Government
may, by notification in the Official Gazette, appoint.
2. Definitions.-In this Act, unless there is anything repugnant in the
subject or context,-
(1) “Board” means the Board of Industries constituted under section 3
of this Act.
1 For Statement of Objects and Reasons, see R.H.P. Extra., dated the 4th December,
1968, p. 1220. 2 The Act enforced w.e.f. 19th January, 1973, vide Not. No. 9-7/71 SI (Loans), dated
the 9th January, 1973, repro. at the end of this Act.
(2) “borrower” means an individual, company or association or body
of individuals, whether incorporated or not, to whom or to
whichState aid has been granted under this Act;
(3) “company” means a company as defined in the Companies
Act,1956;
(4) “Director” means the Director of Industries, Himachal Pradesh
and includes any officer authorised by the State Government to
perform all or any of the functions of the Director under this Act;
(5) “industry” means any industrial business or enterprise conducted
or undertaken either by an individual or by a company, associa-
tion or body of individuals, whether incorporated or not;
(6) “cottage industry” means any industry that is carried on in a place
which is not a factory for the purposes of the Factories Act, 1948.
(7) “village industries” means any industry which for~ the normal
occupation, whether whole-time or part-time, of any class of the
rural population of the State;
(8) “machinery” includes plant, apparatus, tools and other appliances
required for the purpose of carrying on any industrial operation or
process;
(9) “Official Gazette”means Rajpatra, Himachal Pradesh;
(10) “prescribed” means prescribed by rules made under this Act;
(11) “State” means the 3[State of Himachal Pradesh], and
(12) “State Government” means the Government of Himachal
Pradesh.
CHAPTER II
ESTABLISHMENT OF BOARD OF INDUSTRIES AND MATTERS
CONNECTED THEREWITH
3. Establishment of Board of Industries.-(1) For carrying out the
purposes of this Act, the State Government shall, as soon as possible, after
thecommencement of this Act, establish Board4 to be called the “Board of
Industries” consisting of the following members, namely:-
(a) the Chairman to be nominated by the State Government;
(b) the Director;
(c) the Managing Director, Himachal Pradesh Financial Corporation;
3Subs. for ‘Union territory of Himachal Pradesh’ by A.O. 1973. 4 The Board constituted vide Not. No. 7-2/73-SI (Loan) dated the 31st August, 1973,
(Appended).
(d) three non-official members to be appointed by the State Govern-
ment; and
(e) three members to be elected by the Legislative Assembly of
HimachalPradesh from amongst members of the Assembly,
election beingin accordance with principle of proportional
representation by means of the single transferable vote:
Provided that the Board shall have power to invite for consultation on
any particular question before it, not more than three persons specially
qualified to advise on the matter in question or having special knowledge of
local conditions in the area where the industry in question is situated. Any
person so invited by the Board shall not have the right to vote.
(2) The Director shall be ex-officio Secretary of the Board.
(3) Four members of the Board shall form a quorum.
4. Procedure in default of election of members.-If by such date as
may be fixed by the State Government, the Legislative Assembly of Himachal
Pradesh does not elect any member to be elected by it under the provisionsof
clause (e) of section 3 (1), the State Government shall appoint a member of
that Assembly to be a member of the Board, as if he had been duly elected
under that clause.
5. Vice-Chairman.-The Board may, from time to time, elect, for such
period as it thinks fit, one of its members to be the Vice-Chairman.
6. Election or appointments to be notified in the Official Gazette.-
The names of the Chairman, Vice-Chairman and ofthe appointed and elected
members of the Board shall be published by the State Government in the
Official Gazette.
7. Term of office.-(1) The Vice-Chairman or any other appointed or
elected member may resign his office by giving notice in writing to the
Chairman.
(2) (a) Subject to the provisions of this Act, an appointed member
shall hold office for five years unless the State Government otherwise directs;
and an elected member shall hold office for five years or until such time as he
ceases to be a member of the body electing him, whichever is shorter.
(b) An outgoing member may, if otherwise qualified, be re-elected or
re-appointed.
(3) Notwithstanding the expiration of the term mentioned in sub-
section (2), an appointed or elected 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 unfilled for more than six months.
8. Removal of members.-(1) The State Government may, by noti-
fication, in the Official Gazette remove the Chairman, Vice-Chairman or any
member of the Board ifhe-
(a) refuses to act or becomes incapable of acting as a member of
theBoard; or (b) isdeclaredinsolvent; or
(c) is convicted of any such offence, or is subjected by a criminal
courtto any such order, as in the opinion of the State
Governmentimplies a defect of character which unfits him to
continue to bea Chairman, Vice-Chairman, or member of the
Board, provided that before the State Government notifies 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 opportunity of tendering an
explanation in writing;
(d) without excuse, sufficient in the opinion of the State Government,
is absent, without the consent of the Board, from more than four
consecutive meetings ofthe Board.
(2) The State Government may fix a period during which any person
soremoved under clause (b) or (c) of sub-section (1) of this section shall not
be eligible for re-appointment or re-election.
9. Casual vacancies.-When the place of any member of the Board
becomes vacant by his removal, resignation or death, a new member shall be
appointed by the State Government:
Provided that if the place of any member elected by the Legislative
Assembly of Himachal Pradesh becomes vacant, the Assembly shall elect
another member, in his place, election being in accordance with the principle
of proportional representation by means of the single transferable vote:
Provided further that any person so appointed under this section shall
be subject to retirement at the same time as if he had become a member of the
Board on the day on which the member of the Board in whose place he is
appointed was last appointed a member of the Board:
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 performance of such act was less than the number provided by
section 3.
10. Allowances and fees.-The members of the Board and the
members of committees, which may be appointed by the Board, when
necessary, shall be paid travelling allowance of the prescribed amount and on
the prescribed conditions for attending meetings of the Board, or for
performing any duty assigned to them by the Board for the purposes of this
Act.
11. President at meetings.-(1) The Chairman or, in his absence, the
Vice-Chairman shall preside at every meeting of the Board, 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 the members to preside,
who shall have a second or casting vote in all cases of equality of votes.
12. Interested members not to vote.-No member of the Board shall
vote on any question coming before the Board for consideration in which
(otherwise than in its general application to all persons and properties within
the State) he has a pecuniary interest.
Explanation.-In case of any question arising whether a member has
or has not a pecuniary interest, the decision of the Chairman shall be final.
13. Power of Board to make regulations.-(1) The Board may make
regulations, consistent with this Act and the rules made thereunder, 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 Board may make regulations regulating or determining
all or any of the following matters, namely:-
(i) the time and place of its meetings;
(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 members of the Board; and
(v) the appointment, duties and procedure of special
committeesconsisting wholly of members of the Board or partly
of such membersand partly of other persons.
14. Supersession of Board.-(1) If at any time it appears to the
StateGovernment that the Board is not properly performing the duties
imposed upon it by or under this Act, the State Government
may,afterconsideringanyexplanation offered by the Board, by an order in
writing specifying the reasons for so doing, dissolve the Board and direct that
the vacancies shall thereupon be filled by election in respect of elected
members and by appointment in respect of appointed members in the manner
indicated above.
(2) From the date of an order under sub-section (1) until the vacancies
an filled, all powers and duties of the Board shall be exercised and performed
by such person in such manner as the State Government may direct.
15. Duty of Board.-It shall be the duty of the Board-
(a) to report to the State Government, after such enquiry, if any, as
itdeems necessary or as may be required by this Act, on
applicationsfor State aid that may be referred to it for advice by
the State Government or any officer authorised in this behalf by
it; and
(b) to advise the State Government on any matter that may be
referredto it:
Provided that the State Government shall not sanction State aid
withoutreference to the Board except in the case of a loan the amount of
which doesnot exceed Rs. 30,000.
16. Documents and reports to be furnished to the State Govern-
ment .-If the State Government so directs, the Secretary shall forward to the
State Government any document and prepare and submit any report relating to
the work of the Board.
CHAPTER III
GENERAL PROVISIONS REGARDING THE GIVING OF STATE
AID
17. Form of State aid.-The forms of State aid which may be
givenmay include the following, namely:-
(a) the grant of a loon;
(b) the grant, sale or lease on favourable terms, ofland, raw
material,water or any other property right vested in the State
Government for the purposes of the State Government.
(c) the guarantee to the cash credit, overdraft or fixed advance witha
Bank;
(d) the supply of machinery on the hire-purchase system;
(e) the guarantee of a minimum return on the whole or part of the
capitalofajoint stock company for a period fixed in accordance
with therules made under this Act;
(f) under-writing the issue of stock, shares, bonds or debentures by
thelimitedjoint stock company;
(g) the acquisition of shares or debentures, provided that the amount
paid by the State Government for such shares or debentures shall
not exceed the amount already paid by another person or shares
and debentures in the same industry;
(h) the grant, free of charge, or on favourable terms, of the services of
experts or persons in the service of the State Government or
starting or advising an industry:
(i) the payment of subsidy-
(i) in the case of any large-scale or medium-scale industry for the
conduct of research;
(ii) in the case of any small-scale industry for one or more of
thefollowing purposes, namely:-
(a) purchase of land, machinery and equipment;
(b)the construction of factory building, godowns, watersupply,
ware-houses;
(c) the making of technical improvements in the machineryin
actual use in the industry;
(d) the employment of sufficient managerial and
supervisorypersonnel for a limited period;
(e) the training of workers employedin the industries;
(f) the conduct of research; and
(g) supply of electric energy at concessional rate from a source
which is the property of the State Government, in a manner
prescribed in the rule.
18. Industries to which several forms of State aid may be given.-
State aid may given to-
(a) a new or nascent industry;
(b) an industry to be newly established in an area where such
industriesare undeveloped; or
(c) a cottage industry or village industry; or
(d) an industry which needs revival, or development by
modernmethods.
19. Application for State aid.-Applications for State aid shall be
made to the Director in such form, and shall contain such information, as may
be prescribed.
CHAPTER IV
PROVISIONS REGULATING THE GIVING OF STATE AID
OTHERWISE THAN BY THE SUPPLY OF MACHINERY OF THE
HIRE-PURCIIAE SYSTEM
20. Power to grant loans.-Loans granted under this Chapter subject
to the sanction of the State Government given after consultation with the
Finance Department, provided that in regard to loans not exceeding a pres-
cribed amount, the State Government may make rules delegating its powers to
such authority or officers as it deems fit.
21. Security for repayment.-(1) (a) On the acceptance of an
application for a loan, the applicant shall execute a deed in the
prescribedform, undertaking to apply the loan to the purpose for which, and to
fulfil the conditions on which, the loan was granted, rendering himself and
such property as may have been specified in the deed as security, including
machinery or any building constructed, with aid of the loan and in the event of
such property being found insufficient, rendering the hole of his property
liable for the repayment of the loan with interest and costs, if any, incurred by
the State Government in making or recovering the loan.
(b) No transfer, assignment or charge made or created after the
execution of the deed, in relation to the property specified therein or
machinery purchased or building constructed with the aid of a loan, shall be
valid against the State 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 a firm or company, the
deed shall be executed by a duly authorised representative thereof, and the
deed shall thereupon be deemed binding on the said firm or company 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. Loan how repayable.-The loan together with all interest thereof,
if any, shall be repayable either in a lump sum or by instalments as may be
provided for in the deed executed by the borrower under section 21.
23. Notice to pay.-(1) When any loan or instalment or interest 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 State 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 or to
show cause 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 declaration in a prescribed form showing the amount
of the debt due and the property mentioned in the deed as liable to satisfy the
same.
24. Effect of declaration.-(1) If, within the time so fixed, the sums
due are not paid or no cause is shown to the satisfaction of the officer
empowered under section 23, the said officer may issue the declaration as
described in sub-section (2) of the same section, and such declaration shall be
published in the Official Gazette.
(2) Such declaration shall be conclusive evidence of its contents, and
shall not be called in question in any court by the borrower, his heirs, legal
representatives or assigns, or by any member of his family if he belongs to a
Joint Hindu Family nor shall any right, principle or rule arising from or under
the personal or customary law applicable to the said persons or any of them
affect the validity or effectiveness of a mortgage executed or of a declaration
published under this Act, or the procedure therein provided for enforcement
thereof.
(3) Such declaration may be produced by the said officer, or by such
otherperson as he may either generally or specially appoint in this behalf,
before theprincipal civil court of original jurisdiction within the locallimits of
whose jurisdiction any of the property liable for the debt due is situated, in the
same manner as a decree of which execution is sought.
25. Execution of declaration.-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 ifit were a
decree for the payment of money passed by the said court in the exerciseof its
ordinary civiljurisdiction.
26. Inspection and returns.-In any ease in which an application for a
loan has been made under this Chapter, the applicant and, 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 the premises, building, machinery and
stock-in-hand of the industry;
(b) to permit the inspection of all accounts relative to the industry;
(c) to furnish full returns of all products manufactured or sold, bothas
regards description and quantity;
(d) to maintain such special accounts and to furnish such statementsas
the Director may, from time to time, require; and
(e) to submit the accounts of the industry to such audit as the
Directormay prescribe.
27. Penalty for default in applying the loan.-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 declare, notwithstanding anything contained in the deed executed under
section 21, that the loan is immediately repayable and shall give notice of
suchdeclaration to the borrower.
28. Power to adjust security during currency of loan.-Ifat any time
during the currency of the loan, the value of the securityfalls below the out-
standing balance of the loan, the Director may either proceed to recover in the
manner laid down in sections 23, 24 and 25 so much of such balance as is not
adequately covered by the then existing value of the security or accept such
additional or collateral security as he may deem sufficient.
29. Power to recover loans.-Ifthe borrower fails to comply with any
order under clause (a) of section 26 or does not permit or obstructs the inspec-
tion of the accounts relative to the industry or makes default in respect of
anyof the particulars specified in clauses (c), (d) and (e) of the said section, or
if the borrower disposes of profits in contravention of the provisions of
section 33, the Director may, after considering any representation the
borrower may make within such time as the State Government may allow in
this behalf, proceed to recover the loan in the manner laid down in sections
23, 24 and 25.
30. Appeal.-Within 30 days of the receipt of a notice under sections
27, 28 and 29, the borrower may appeal against such order to the State
Government and the decision of the State Government thereon shall be final.
31. Government guarantee or a minimum return.- The conditions
of a guarantee by the State Government of a minimum return on the whole or
part of the capital of joint stock company shall be-
(a) that the industry shall be subject to the conditions of section 26
inrespect of inspection, returns and accounts;
(b) that a minimum portion of the authorised capital of the industryto
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, extend beyond a periodof
5 years;
(d) that during the period to which the guarantee extends, the State
Government may impose 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
State Government, they shall be liable jointly and severally to
refund to the State Government any sums paid to the company in
fulfilment of the guarantee;
(e) That the State Government shall be entitled to recover the whole
or any part of the sum paid by the State Government on account
of such guarantee with interest at the rate in force on the date of
the agreement forloans granted under the Land Improvement
Loans Act, 1883, (19 of 1883) at any time after such period as
may have been laid down in the agreement, provided that the
State Government is satisfied that the company is paying or is
able to pay interest or a dividend upon the capital shown as paid
up in excess of such rate as may be fixed in the agreement and
such recovery shall be made in the manner laid down in sections
23, 24 and 25:
Provided that the sum recoverable by the State Government in anyone
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 the agreement.
32. Subsidies.-A subsidy to an industry as per clause (i) of section 17
may be granted by the State Government on such conditions as may be
prescribed in this behalf.
33. Disposal of profits when conditions on which State aid is given
are not fulfilled.-No borrower shall pay any dividend or distribute or take any
profits in excess of such percentage rate upon the amount of the capital of the
industry as the State Government may,form time to time, fix, until the
conditions on which the State aid has been granted are fulfilled.
34. Government control of aided industry.-Notwithstanding
anythingcontained elsewhere in this Chapter, the State Government may, by
the appointment of its own directors or otherwise, exercise such 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.
35. Method of recovery of money due.-Notwithstanding anything
contained in sections 23, 24 and 25, any amount payable to the State
Government under this Act including interest chargeable thereon and costs, if
any, incurred, may, with the previous sanction of the State Government, be
recovered as arrears of land revenue.
CHAPTER V
SUPPLY OF MACHINERY ON HIRE-PURCHASE SYSTEM
36. Percentage of cost to be deposited by hirer.-Nomachineryshall
be supplied by the State Government on the hire-purchase system unless the
applicant therefor deposits with the Director such percentage of the cost
thereof as may be prescribed, and furnishes security for the unpaid portion of
such cost in the same manner as for a loan granted under the provisions of
Chapter IV.
37. Particulars to be specified in order when application is
allowed.-When an application is allowed, the Director shall, subject to, and in
accordance with, any rules that may be made under this Act, make an order
specifying 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
ofrent on the remaining unpaid instalments;
(c) the dates on which, and the manner in which the aforesaid pay-
ments shall be made; and
(d) such other particulars as may be prescribed.
38. Conditions of supply of machinery on hire-purchase system.-
Until the hiring is terminated in the manner hereinafter provided,
thefollowingprovisions shall apply,- namely:-
(a) 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;
(b) the hirer shall retain the machinery in his own possession in good
and serviceable order and condition and shall not, without the pre-
vious written consent of the Director, make any addition thereto,
or alteration therein, nor remove the machinery or any part thereof
from the premises specified in the application for the supply
thereof;
(c) the machinery shall remain the sole and absolute property of the
State 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 State Government unless it has been made
with the previous written consent of the Director;
(d) the machinery shall not be liable to distraint, attachment or sale by
any process under any law for the time being in force, otherwise
than under this Act;
(e) the machinery shall bear a metal plate in the prescribed form, and
any person who wilfully removes or defaces such plate shall be
liable to a fine not exceeding five hundred rupees. It shall be
presumed, until the contrary is proved, that machinery bearing
such metal plate is the property of the State Government hired out
under this Chapter;
(f) the hirer shall permit the Director or any person authorised by the
Director in this behalf to inspect the machinery at all reasonable
times, and the Director or such other person shall have all such
powers of entry as may be necessary for the purpose of making an
inspection; and
(g) in addition to the foregoing conditions, the hirer shall be bound by
such other conditions consistent therewith as may be prescribed
by rules made under this Act, or maybe imposed by the Director
in any particular case.
39. Consequence of default by hirer.-If the hirer makes default in
paying the rent 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 16 days notice, terminate the hiring and he or
any other officer authorised by him in this behalf may thereupon enter the pre-
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.
40. Option of hirer to purchase machinery seized for default.-(1)
If the machinery is seized and taken away under section 39, the hirer shall
have the option to be exercised within one month after such a seizure or such
longerperiod as may be allowed by the Director in this behalf, of purchasing
the same by payment to the Director, of the unpaid balance of the cost thereof
together with such other amount as may be due, and the cost of, and expenses
incidental to, such seizure and removal.
(2) If, within the period specified in sub-section (I), the hirer does not
exercise the option of purchase, the Director shall proceed to dispose of the
machinery.
41. Liability of hirer on termination of hiring under section 39.-If
the Director terminates the hiring under section 39 and the hirer docs not
purchase the machinery under section 40, the hirer shall not be entitled to the
refund of the sum deposited by him under section 36 or to the refund or remis-
sion of any payment made by or due from him during the hiring, and shall be
liable to pay such amount, if any, as the Director may determine in respect of
any loss caused by the disposal of the machinery under sub-section (2) of
section 40.
42. Termination of hiring on payment of cost of machinery.--
When, after credit has been given for the amount deposited under section 36,
the hirer has paid in full all the instalmentsofrent mentioned in clause (a)
ofsection 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
sect ion 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
thereofshall be remitted.
43. Penalty for non-removal of metal plate from machinery.- If the
hirer wilfully omits, after receiving due notice, to remove the metal plate from
any machinery which has become his property under section 42, he shall be
liable to a fine not exceeding fifty rupees.
44. Sums due under this Chapter recoverable as loans under
Chapter IV.-All sums payable under this Chapter shall be recoverable in the
same way as loans under Chapter IV.
CHAPTER VI
SUPPLEMENTAL
45. Finality of decision of State Government and bar of suits and
proceedings in civil and criminal courts.-(1) The decision of the State
Government as to whetherthe conditions laid down in or under any of the
provisions of this Act have been satisfied, shall be final, and no suit shall be
brought in any civil court to set aside or modify anyorder made thereunder.
(2) No prosecution, suit or other proceeding shall lie against any
Government officer or other authority vested with powers under this Act for
anything in good faith done or intended to be done thereunder.
46. Power to make rules.-(1) The State Government may after pre-
vious publication, make rules, consistent with this 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 State Government may make rules regulating or
determining all or any of the following matters, namely:-
(a) regulating the travelling allowance under section 10;
(b) the manner of making application for State aid under section 19;
(c) the delegation of power to give loans under section 20;
(d) the form of deed to be executed under section 21;
(e) the nature and amount of the security to be taken under sections 21
and 36 for the clue application and repayment of the State aid or
rents together with all interest due thereon, if any, and the rate of
interest at which and the conditions under which State aid may be
granted:
Provided that where the security consists whole or m part of the
premises, machinery, stock stores or other property, present or future,
movable or immovable of the industry concerned, then the whole of
such property, present and future, movable and immovable, may be
made liable for the recovery of the loan and all interest due thereon,
ifany;
(f) the inspection under section 26 of the premises, buildings,
machinery and stock-in-hand and the mode of keeping and
auditing the account and of furnishing returns of any industry in
respect of which State aid has been given;
(g) the manner in, and the place at, which notices or order nay be ser-
ved on any borrower;
(h) the form of the declaration to be used under section 24;
(i) the fixing of the period for the repayment of loans;
(j) the application under section 33 of profits in the case in which
theconditions on which State aid has been given, have not been
fulfilled ;
(k) the appointment and functions of directors appointed by the State
Government under section 34 and the prescribing of other methods
of control of industries to which State aid has been given ;
(l) the percentage of the cost of machinery to be deposited under
section 36;
(m) the additional particulars to be specified in the order referred to in
section 37 and the condition on which machinery may be supplied
on the hire-purchase system;
(n) the form of the metal plate referred to in clause (e) of section 38;
(o) the form of notice under section 39;
(p) the recovery of any sums payable under this Act; and
(q) all other matters pertaining to the working of this Act.
(3) Every rule made under this Act shall be laid, as soon as may be
after it is made, before the Legislative Assembly while it is in session for a
total period of not less than fourteen days which may be comprised in one
session or in two or more successive sessions and if before the expiry of the
session in which it is so laid or the sessionsaforesaid, the Assembly makes any
modification in the rule or decides that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as
the case maybe, so, however, that any such modification or annulment shall be
without prejudice to the validity of any thingpreviously done under that rule.
47. Repeal and savings.-(1) The Punjab State Aid to Industries Act,
1935 (5 of 1935), as in force in Himachal Pradesh is here by repealed.
(2) Notwithstanding such repeal, anything done or any action taken,
including, any orders, and notifications issued or rules made in exercise of the
power conferred by or under the repealed Act, shall, to the extent of being
consistent with the provisions of this Act, be deemed to have been done,
taken, issued, or made, in exercise of the powers conferred by or under the
corresponding provisions of this Act.
(3) All the loans granted or deemed to have been. granted under the
Act repealed under sub-section (1) and all documents executed in connection
therewith shall be deemed to have been granted and executed under the
provisions of this Act and the rules made or deemed to-have been made
thereunder, and the recovery thereof shall be effected accordingly.
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