The JAMMU AND KASHMIR STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT BOARD ACT, 1979

[STATE] SHEEP AND SHEEP
PRODUCTS DEVELOPMENT BOARD
ACT, 1979
(Act No. IX of 1979)
2 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT3
BOARD ACT, 1979
THE JAMMU AND KASHMIR STATE SHEEP AND SHEEP
PRODUCTS DEVELOPMENT BOARD ACT, 1979
(Act No. IX of 1979)
CONTENTS
SECTION.
CHAPTER I
Preliminary
1. Short title, extent and com-mencement.
2. Definitions.
CHAPTER II
Establishment and Constitution of the Board
3. Establishment of  the Board.
4. Constitution of the Board.
5. Disqualification for being a Member.
6. Term of office of the Members.
7. Casual vacancy.
8. Appointment of employees  of the Board
9. Salaries and Allowances.
10. Control of Managing Director.
11. Meetings.
12. Disqualification for participation in proceedings on account of interest.
13. Acts not to be invalidated by vacancy etc.
CHAPTER  III
Functions and Powers of the Board
14. Functions of the Board.
4 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
SECTION.
15. Powers of the Board.
16. Powers of the Board to undertake other projects.
17. Funds of the Board.
18. Subventions to  the Board.
19. Loans to the Board.
20. Repayment of loan.
21. Budget.
22. Accounts and Audit.
23. Liability for loss, damage etc.
CHAPTER  IV
External Control
24. Directions on the question of Policy.
25. Annual Administrative Report.
CHAPTER  V
Miscellaneous
26. Local bodies to assist the Board.
27. Protection for action taken  in good faith.
28. Members etc. deemed to be public servants.
29. Authentication of proceedings.
30. Recovery of sums.
31. Delegation of Powers.
32. Powers to make rules.
33. Regulations.
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STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT5
BOARD ACT, 1979
THE JAMMU AND KASHMIR STATE SHEEP AND SHEEP
PRODUCTS DEVELOPMENT BOARD ACT, 1979
(Act No. IX of 1979)
[Received the assent of the Governor on 29th September, 1979 and
published in the Government Gazette dated 29th September, 1979.]
An Act to provide for the establishment of a Sheep and Sheep Products
Development Board for procurement of raw wool, its grading and sale and
for development of Sheep and Wool Industry within the 1[State] and for
matters connected therewith.
Be it  enacted by the Jammu and  Kashmir  State Legislature  in  the
Thirtieth Year of the Republic of India as follows :––
CHAPTER I
Preliminary
1. Short title, extent and commencement. ––(1) This Act may be called
the Jammu and Kashmir Sheep and Sheep Products Development Board
Act, 1979.
(2) It extends to the 2[whole of the Union territory of Jammu and
Kashmir].
3[(3) It shall come into force on such date as the 4[Government of the
Union territory of Jammu and Kashmir] may, by notification in the
5[Government Gazette], appoint in this behalf.]
2. Definitions.–– In this Act, unless the context otherwise requires,—
(a) “Board” means the Jammu and Kashmir State Sheep and  Sheep
Products Development Board, established under this Act ;
6[(aa) “Breeder” means a person who rears sheep or goats or both and
produces wool, pashmina and bye-products thereof for sale and
includes wool and pashmina grower] ;
1. Now Union territory of Jammu and Kashmir.
2. Substituted for “whole of the State of Jammu and Kashmir” by S.O. 1229(E) dated 31.03.2020.
3. Enforced vide SRO–634 dated 4-12-1980 w.e.f. 5th December, 1980.
4. Substituted for “Government” by S.O. 1229(E) dated 31.03.2020.
5. Now Official Gazette.
6. Clause (aa) Inserted by Act XVII of 1983.
6 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
(b) 1[“Managing Director”] means the 1[Managing  Director] of the
Sheep and Sheep Products Development Board appointed under
sub-section (1) of section 8 ;
2[(bb) “Dealer” means a person other than a breeder who carries on
the business of selling and purchasing wool, pashmina and bye-
products thereof] ;
(c) “Government” means the Government of 3[Union territory of
Jammu and Kashmir] ;
(d) “Prescribed” means prescribed by  rules made under this Act ;
(e) “Regulations” means regulations made under this Act ;
4[(ee) “Wool and Pashmina grower” means a person who owns sheep
or goats or both and produces wool, pashmina and bye-products
thereof for sale but does not rear sheep or goat himself.]
CHAPTER II
Establishment and Constitution of the Board
3. Establishment of the Board. ––(1) The Government shall by
notification in the Government Gazette and with effect from a date to be
specified therein, constitute a Board by the name of the Jammu and Kashmir
Sheep and Sheep Products Development Board.
(2) The Board shall be a body corporate having perpetual succession
and common seal and may sue and be sued in its corporate name and shall
have the power to acquire, hold and dispose of property for the purposes
of this Act.
(3) The Board shall for all purposes be a local authority.
(4) The Board shall have its head office at Srinagar and may have
offices at such other places as it may consider necessary.
4. Constitution of the Board.–– The Board shall comprise the Minister
Incharge (Sheep Husbandry) as ex officio Chairman, the Minister of State
1. Substituted by Act XVII of 1983.
2. Clause (bb) inserted ibid.
3. Construed for “Jammu and Kashmir State” by S.O. 3912(E) dated 30.10.2019.
4.  Clause (ee) inserted by Act XVII of 1983.
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT7
BOARD ACT, 1979
or the Deputy Minister, if any, as ex officio Vice-Chairman and such other
official members not exceeding seven, two members from the Legislative
Assembly 1[x x x x] and three non-official representatives, two from Wool
Growers and one from Wool Processors, as may be nominated by the
Government.
5. Disqualification for being a member.–– A person shall be
disqualified to be appointed as and for being a member of the Board,
if he—
(a) has been convicted of an offence which, in the opinion of the
Government, involves moral turpitude ; or
(b) is an undischarged insolvent ; or
(c) is physically or mentally incapable of acting as such
member ; or
(d) in the opion of the Government has failed to act or has become
incapable of acting in the best interests of the Board or has so
abused his position as the member, as to render his continuance
as such detrimental to the interests of the Board or the general
public ; or
(e) has directly or indirectly by himself or by any partner or
employer or employee any share or interest, whether pecuniary
or otherwise in any contract or employment with, by or on
behalf of the Board ; or
(f) as Director, Secretary, Manager or other officer of any company
which has any share or interest in any contract or employment
with, by or on behalf of the Board :
Provided that a person shall not be disqualified under clause
(f) by reason only of his or the company in which he is a Director,
Secretary, Manager or  other officer having a share or interest in—
(i) any sale, purchase, lease or exchange of immovable property
or any agreement for the same ; or
(ii) any agreement for loan of money, or any security for
payment of money only ; or
1. Words “and one from Legislative Council” omitted by S.O. 1229(E) dated 31.03.2020.
8 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
1. Substituted by Act XVII of 1983.
(iii) any newspaper in which any advertisement relating to the
affairs of Board is published ; or
(iv) an occasional sale to the Board up to a value not exceeding
ten thousand rupees in any year, of any article in which
he or the company regularly trades.
Explanation.––A person shall not be deemed to have any share or interest
in any contract or employment with, by or on behalf of, the
Board by reason only of his being a shareholder of the
company which has such share or interest.
6. Term of office of the members. ––(1) The term of office of a member
of the Board shall be three years unless he is disqualified earlier under
section 5.
(2) An outgoing member, if otherwise qualified, shall be eligible for
re-appointment.
(3) A member of the Board may at any time, by writing under his hand
addressed to the Government, resign his office and on such resignation
being accepted, he shall be deemed to have vacated his office.
7. Casual vacancy.–– A casual vacancy caused by resignation of any
member under sub-section (3) of section 6 or for any other reason shall
be filled up by the Government.
8. Appointment of employees of the Board. ––(1) The Board shall
have the following officers who shall be appointed in consultation with the
Government :––
(a) 1[Managing Director] ; and
(b) 1[Financial Advisor].
(2) The Board may appoint such employees as it considers necessary
for the efficient performance of its functions under this Act.
9. Salaries and allowances. ––(1) The members of the Board shall
be entitled to draw such honorarium and travelling expenses or salaries
and allowances and be subject to such other conditions of service as may
be prescribed.
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT9
BOARD ACT, 1979
(2) The employees of the Board shall be entitled to receive from
the fund of the Board such salaries, allowances, travelling expenses etc.
and shall be governed by such conditions of service as may be determined
by regulations.
10. Control of 1[Managing Director].––Subject to the superin-
tendence, control and directions of the Board, the management and
general control over the employees of the Board shall be vested in the
1[Managing Director].
11. Meetings. ––(1) The Board shall meet at such time and place and
shall observe such procedure in regard to the transaction of business in its
meetings as may be determined by regulations.
(2) In the absence of the Chairman any member elected by the members
present, amongst themselves, shall preside at the meeting of the Board.
(3) The quorum to constitute a meeting of the Board shall be one-
half of total membership.
(4) All decisions shall be by majority of votes and in case of a tie,
the Chairman shall have a casting vote.
(5) Any person invited by the Chairman for advice shall have no
right to vote.
12. Disqualification for participation in proceedings on account of
interest.–– A member, who is directly or indirectly concerned or interested
in any contract, loan, arrangement or proposal proposed to be entered into
by or on behalf of the Board, shall, at the earliest possible opportunity,
disclose the nature of his interest to the Board and shall not be present at
any meeting thereof when any such contract, loan, arrangement or proposal
is discussed, unless his presence is required by other members for the
purpose of eliciting information and no member so required to be present
shall vote on any such contract, loan, arrangement or proposal.
13. Acts not to be invalidated by vacancy etc.–– No act done or
proceedings taken under this Act, by the Board shall be deemed to be
invalid by reason merely of any vacancy or defect in the constitution
of the Board.
1. Substituted by Act XVII of 1983.
10 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
1. Substituted by Act XVII of 1983, s. 5.
CHAPTER III
Functions and Powers of the Board
14. Functions of the Board.–– Subject to the provisions of this Act,
the functions of the Board shall be,––
(a) to procure wool and pashmina mainly from the primary producers
at the prevailing market rate and to make necessary arrangements
for its sale ;
(b) to make arrangements for grading and combing of wool ;
(c) to recommend to the Government such measures as it may
consider necessary for the development of Sheep and Wool
Industry ;
(d) to take up marketing of 1[sheep and goats skins] and to build
modern sale yards ; and
(e) to take up spinning of wool.
15. Powers of the Board. ––(1) The Board shall, subject to the
provisions of this Act, have powers to do all such acts as may be necessary
for carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing provisions
such powers shall include the powers––
(a) to set up collection, grading and selling centres for pashmina
and wool ;
(b) 1[to register dealers, wool classers,] sheep breeders and wool
collectors ;
(c) to enter into such contract or arrangements with any person as
the Board may deem necessary for performing its functions
under this Act ;
(d) to borrow money, issue debentures, bonds or stocks and manage
its funds ; and
(e) to incur expenditures and grant advances for performing  its
functions under this Act.
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT11
BOARD ACT, 1979
1. Sub-section (5) inserted by Act XVII of 1983, s. 7.
2.  Substituted by Act IX of 1998, s. 2.
3. Added by Act IX of 1998.
16. Powers of the Board to undertake other projects.–– The Board may
undertake any project at its own instance or at the instance of the Government
or any other person connected with the development of Sheep and Wool
Industry on such terms and conditions as may mutually be agreed upon.
17. Funds of the Board. ––(1) The Board shall have and maintain its
own fund to which shall be credited all moneys received by or on behalf
of the Board.
(2) The fund shall be applied towards meeting expenses incurred by
the Board in the discharge of its functions under this Act and for no other
purposes.
(3) All moneys constituting the fund referred to in sub-section (1)
shall be kept in the J&K Bank Ltd. or any such other Scheduled or
Nationalised Bank as may be determined by the Government :
Provided that nothing in this sub-section shall be deemed to preclude
the Board from retaining such balance in cash as may be necessary for
current payment of day to day expenditure.
(4) At the close of the financial year the Board shall determine the
profits that may have accrued to it during the preceding year and remit the
profits into Government exchequer as revenue of the Government :
Provided that in determining the profits the Board shall also take into
account all expenses due on account of taxes, repayment of loans, interest
on loan, liabilities incurred but not redeemed and such reserves as the
Government may allow to the Board to build and maintain for smooth
running of affairs of the Board.
1[(5) The authorised capital of the Board shall be Rs. 2[10.00] Crores
divided into such number of fully paid up shares as the Government  may,
from time to time determine and each such capital share shall have the same
face value.
3[(6) The authorised capital of the  Board shall be enhanced or reduced
reasonably, as and when need arises, by the Board of Directors with the
approval of the Government.]
12 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
18. Subventions to the Board.–– The Government may, after due
appropriation by law of the State Legislature, from time to time, make
subventions to the Board for the purposes of this Act on such terms and
conditions as the Government may determine.
19. Loans to the Board.–– The Government may, from time to time,
advance loans to the Board for the purpose of this Act, on such terms and
conditions as the Government may determine.
20. Repayment of loan.–– The Board shall, for the purpose of repayment
of any loan raised by it, establish a sinking fund in such manner as may
be prescribed.
21. Budget.–– The Board shall prepare every year a Budget in respect
of the financial year next ensuing, showing its estimated receipts and
expenditure.
22. Accounts and Audit. ––(1) The Board shall maintain proper accounts
and prepare annual statement of accounts including balance sheet.
(2) The accounts of the Board shall be audited annually by such
qualified Chartered Accountant as the Government may appoint. The auditor
so appointed shall have the right to demand the production of books,
accounts and connected vouchers, documents and papers and to inspect any
of the offices of the Board.
(3) The  accounts of  the Board as certified by the auditor and a copy
of the audit report shall be forwarded annually to the Government.
(4) The Government shall,––
(a) cause the accounts of the Board together with audit report thereon,
received by it under sub-section (3) to be laid annually before
1[the Legislative Assembly of the Union territory of Jammu and
Kashmir] ; and
(b) cause the accounts of the Board to be published in the prescribed
manner and make copies available for sale at reasonable price.
23. Liability for loss, damage etc. ––(1) The Chairman or any other
member or employee of the Board shall be liable for damages for the loss,
waste or misappropriation of any money or property of Board, if such loss,
1. Substituted for “each House of the State Legislature” by S.O. 1229(E) dated 31.03.2020.
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT13
BOARD ACT, 1979
waste or misappropriation is a direct consequence of his misconduct while
acting as Chairman or member or employee of the Board.
(2) The procedure for fixing liability shall be such as may be
prescribed.
CHAPTER IV
External Control
24. Directions on the question of policy. ––(1) The Board shall
discharge its functions under this Act, according to the policy or directive
given by the Government.
(2) If any dispute arises whether any matter is or is not a matter in
respect of which the Government may issue a direction under sub-section
(1), the decision of the Government thereon shall be final.
25. Annual Administrative Report. ––(1) The Board shall, as soon as
may be after the end of each financial year, prepare and submit to the
Government, a report giving an account of its activities during the previous
financial year. Such report shall also give an account of the activities
proposed to be undertaken by the Board in the next financial year. The
Government shall cause such report to be laid before 1[the Legislative
Assembly of the Union territory of Jammu and Kashmir].
(2) The Board shall furnish to the Government any statistic and
returns that the Government desire to be sent periodically in such form and
manner, as the Government may direct form time to time.
CHAPTER V
Miscellaneous
26. Local bodies to assist the Board.–– Every local body shall render
such assistance and furnish such information to the Board as it may require
in connection with its functions under this Act.
27. Protection for action taken in good faith.–– No suit, prosecution
or other legal proceedings shall lie against the Government or the Board
or the Chairman or member or employee of the Board for anything which
1. Substituted for “each House of the State Legislature” by S.O. 1229(E) dated 31.03.2020.
14 STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT
BOARD ACT, 1979
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “State Ranbir Penal Code, Samvat 1989”.
2. Substituted by Act XVII of 1983.
3. Now Official Gazette.
4. Clause (aa) inserted by Act XVII of 1983, s. 8.
is in good faith done or intended to be done under this Act or any rule made
thereunder.
28. Members etc. deemed to be public servant.–– The Chairman and
the members of the Board or its employees shall be deemed, while acting
or purporting to act in pursuance of any of the provisions of this Act, to
be public servants within the meaning of section 21 of the 1[Indian Penal
Code (45 of 1860)].
29. Authentication of proceedings.–– All proceedings of the Board
shall be authenticated under the signatures of the Chairman or the member
presiding in the absence of the Chairman and all orders and other instructions
issued by the Board shall be authenticated by the signature of the 2[Managing
Director] or any officer of the Board so authorised.
30. Recovery of sums.–– All sums due to the Board shall be recoverable
as arrears of land revenue subject to the provisions of Land Revenue Act,
Samvat 1996.
31. Delegation of powers.–– Subject to the provisions of this Act and
rules made thereunder, the Board may by general or special orders, delegate
either unconditionally or subject to such conditions, as may be specified
in the order, to the Chairman or any member or employee of the Board any
of its powers and duties other than the powers to make rules and regulations
under section 32 and 33 of this Act.
32. Powers to make rules. ––(1) The Government may, within one
year of the commencement of this Act, by notification in the 3[Government
Gazette], make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
powers such rules may provide for all or any of the following matters,
namely :––
(a) the manner in which the sinking fund shall be established,
maintained, invested and applied ;
4[(aa) the form for registration, the fees for registration and the
form of register to be maintained by the Board, the period
STATE SHEEP AND SHEEP PRODUCTS DEVELOPMENT15
BOARD ACT, 1979
1. Sub-section (3) omitted by S.O. 1229(E) dated 31.03.2020.
within which registration shall be made and the fine for non-
registration] ;
(b) the procedure in respect of liability under section 23 ;
(c) any other matter which has to be or may be prescribed.
1(3) Omitted.
33. Regulations. ––(1) The Board may with the previous approval of
the Government make regulations not inconsistent with this Act and the
rules made thereunder for the administration of the Board.
(2) In particular and without prejudice to the generality of the
foregoing powers, such regulations may provide for all or any of the
following matters, namely :––
(a) salaries and allowances and conditions of the service of the
employee of the Board ;
(b) time and places of and the procedure in regard to the transaction
of business in the meeting of the Board ;
(c) any other matter for which provision is to be or may be made
in the regulations.
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