The Kerala Industrial Revitalisation Fund Act, 1999(19 of 1999)

469
(Translation in English of “1999-921 c&og Ujaimvo@ a13M038°W9OEM
4 M1w) @g@*Oo0’” published under the authority of the Governor.)
ACT 19 OF 1999*
THE KERALA INDUSTRIAL REVITALISATION FUND ACT, 1999
~
An Act to providefor the constitutwn of afund to revitalise public sector industral
* undertakings and other industrial undertakings under the control of the State
andfor matters connected therewith or incidental thereto.
Preamble.—WHERULAS it is expedient to constitute a fund to 1evVitalise
public sector industijal undertakings and other industrial undertakings under
the control of the State and for matters connected therewith or incidental
«4 thereto;
Be it enacted in the Fiftieth Year of the Republic of India as follows:—
\ 1. Short title, extent and commencement.—(1) This Act may be called the
Kerala Industrial Revitalisation Fund Act, 1999.
(2) It extends to the whole of the State of Kerala.
(3) It shall be deemed to have come into force on the 8th day of
December, 1998.
2. Definitions.—In this Act, unless the context otherwise ,requires,—
’ (a) ‘Board’ means the Kerala IndustrialRevitalisation- Fund Boaid
’ constituted unde? section 4;
(b) ‘Fund’ means the Kerala Industrial Revitalisation Fundestablished
under section 3 and the Scheme;
 
‘Y *Received the assent of the Governor on the 29th day of April, 1999 and
published in the Kerala Gazette Extraordinary No. 2185 dated 30th
November 1999.

 
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.
(c) ‘Fund Manager’ means the Fund Managerof the Board appointed
under section 10;
(d) ‘Financial assistance’ means the types of assistance specified in
the Scheme;
(ec) ‘Government? means the Government of Kerala;
(f) ‘Otherindustrial undertakings’ means coi porate bodies established
in the State under the Companies Act, 1956 (Central Act 1 of 1956) in joint
sector, where the investmentofthe Goveinment1s notless than forty per cent
of the total paid up share capital, and under the Industries Department of
the Government. °
(g) ‘Public sector industrial undertakings’ means any Company
established under the Companies Act, 1956 (Central Act 1 of 1956) or a
Co-operative Society registered or deemed to have been registered under
the Kerala Co-opcrative Societies Act, 1969 (21 of 1969), and under the
control of Industrics Department of the Government
(h) ‘Schedule’? means the Schedule to this Act;
(1) ‘Scheme’ means the Scheme framed unde: this Act,
(j) ‘State’ means the State of Kerala;
(k) ‘Undertakings’ mean: public sector industrial undertakings or
other industrial unde: takings;
(1) ‘Year’? means the financial year.
3. Kerala Industrial Revitalisation Fund Scheme-—(1) The Government
may, by notification in the Gazette, frame a Scheme to be called the Kerala
Industrial Revitalisation Fund Scheme for the establishment of a fund
underthis Act for the revitalisation of Public Sector Industfial Undertakings
and other industrial undertakings in the State and there shall be established,
as soon as maybeafter the framing of the scheme, a fund in accordance with
the provisions of this Act and the Scheme.
(2) There shall be credited to the fund,— °
(a) the contribution specified in section 7;
(b) the amount borrowed by the Board undersection 8 ;
(c) grants or loans or advances made by the Government or
any institution;
 

4
471
(d) any amountraised by the Board from other sources to augment,
the resources of the Board; and
(ec) any other amount which, under the provisions of the Scheme,
shall be credited to the fund. . .
(3) The fund shall vest in, and be administered by, the Board consu-
tuted under section 4,
(4) The fund may be utilised forall or any of the following purposes,
namely:—
; (a) to revitalise public sector industrial undertakings and other
industrial undertakings;
(b) to provide financial assistance to public sector industrial under-
takings and other industrial undetakings.
(c) to redeam the bonds and debentures used to raise resources
for the fund; aad
(d) for implementation of any other purpose specified in the
scheme.
(5) All moneysspecified in sub-section (2) shall be deposited into the
public account of the Government or with the approval of the Government
with any Scheduled Bank or with the Financia) Instituuon owned by the
State Governmentandthesaid accountshall be operated by the Fundmanager.
(6) Subject to the provisions of this Act, the Scheme framed under
sub-section (1) mayprovideforall or any ofthe matters specified in sub-section
(4) and in the Schedule.
(7) The Scheme shall be laid, a soon as may be, after it 1s framed,
before the Legislative Assembly while 1t 1s in session for 2 total period offourteen
days which may be comprised in one session or in two successive sessions,
and if, before the expiry of the session im which it is so Jaid or the session
immediately following, the Legislative Assembly makes any modification in
the scheme, the schemeshall thereafter have effect only in such modified form;
so howeverthat,anysuchmodification shall be without prejudice to the validity
of anything previo&sly done under the Scheme
4, Constatuteon ofBoard—(1) The Government may bynotification in
the Gazetté, constititute with effect from such date as may be specified therein
a Board to be called “the Kerala Industrial Revitalisation Fund Board” for
the administration of the fund and to supervise or carry out the activities
financed from the fund.
(2) The Board shall be a body corporate by the nameaforcsaid, having
perpetual succession and a common seal and shall by the said name sue and
be sued.

472
(3) The Board shall consist ofsuch numberofdirectors not exceeding
seven, as may be appointed by the Governmentand they shall be chosen in
such manner as may bespecified in the scheme.
(4) One ofthe directors of the Board shall be appointed bv the
Government to be its Chairman.
(5) The Board shall administer the fund vested in it in such manner
as may be specified in the Scheme.
(6) The Board may, with the previous approval of the Government
delegate to the Chairman or to the Fund Manager suchofits powers and funcs
tions underthis Act or the Scheme,as it may consider necessary for the efficient
administration ofthe fund, subject to such restrictions and conditions, if any, as
it may specify.
5. Term of office of Dirvectors—(1) A Duarector appointed under sub-
section (3) ofsection 4 shall hold office during the pleasure ofthe Government.
(2) Any Director may resign hiy membership by giving notice in
writing to the Governmentbutshall continuc in office until his resignation is
accepted by the Government.
6. Powers andfunctions ofthe Board.—Subject to the provisions of this Act,
the Board shall have the following powers and functions, namely:—
(a) to mobilise resources for utilisation of the fund;
(b) to sanction financial assistance to the undertakings as per the
Scheme;
(c) to recover the amounts due to the Board fromthe'assisted under-
takings as per the recovery schedulc,
(d) to modify, revise or reschedule the recoveries fiom the assisted*
undertakings as maybe considercd appropriate;
(e) to opt for revenue recovery procedures, if feund necessary and
appropriate, against any ofthe assisted undertakings in the interest of the
Board;
e
(f) to disburse all expenses relating to the administration of the fund
including travel, interest on borrowings, fees, professional charges and other
expenses; :
(g) to invest any surplus fund of the Board, as may be available fiom
time to tame, in such manner as may be specified in the Scheme and alsoto
realise such investments; asw
 

473
(h) to review the performance of public sector industrial undertakings
and other industrial undertakings on a periodic basis;
(1) to enter into memorandum of understanding or performance
contract with companies and other undertakings under the purviewofthis
Act, on behalf of the Government;
(j) to enter into contract on behalf of the Board;
(k) to exercise such of the powers and functions, as may be specified
in, the Scheme,
(1) to exercise such other powers and pe:for1m such other functions
as may be conferred on orentrusted to 1t by the Governmentfo1 carrying out
the purposes of this Act,
(m) to do all acts necessary for and incidental to, the carrying out
of the functions entrusted or delegated to it.
7. Contribution to thefund—TheGovernmentmay,after due appropriation
by law, from time to time make such grants, to the fund for the purposes of
this Act on such terms and conditions as the Government may determine.
8. Power ofthe Board to bo110w.—(1) The Board may, from time to time,
with the previous sanc.ion of the Government and subject to such conditions
as the Government may, by general or special orde: determine, boriow anv
sum required for the purposes of this Act whe:her by the issue of bonds or
debentures or otherwise or by making arrangzments with Banks o1 Public Sector
Industrial undortakings and other Industrial undertakings or other bodies or
institutions approved by the Government in that behalf.
(2) Bonds or debentures issued by the Board underthis section shall be
issued, transferred dealt with or red2emed in such manneras the Government
may, by general or special order, direct
9. Guarantee by Governmentforloan.—(1) The Government mayguarantee
in such mannér as they think fit, the payment of the principal and interest of
any loan proposedtobe raised by the Board undersection 8:
Provided that the total principal amount of guarantee issued by the
Government underthis secticn shall not exceed a sum of rupees one hundred
and eighty crores
(2) The Government shall, sc long as any such guarantee1s in force,
lay before the State Legislature in every year during the budg>t session, a
statement of the guarantees, if any, g'ven during the current financial year
and up-to-date accounts ofthe total sums, if any, which havebeen paid out of
the Consolidated Fund of the St te by reason of any such guarantee or
paid into the said fund towards 1epayment of any money, so paid out.
34/2483/2000/MC

474
10. Appointment ofofficers and staf.—(1) The Government may appoint
a Fund Mmagerand sich n-mbe:ofother officers and staff as they consider
necess?ry to assist the Board in the dischargeof1is functions and duties und21
ths Act
(2) The method of anno ntment, stliary end allowances, discmline
and other condiuions ofs rvice of ta. Find Manage: end the other ofhiecis
and st-ff appointed under sub-section (I) shall be sech as may be specified
in the Scheme.
11. Mode of Recovery ofmary cu to th2 Board —All sums payable by any
person to th Bourd or recover. ble by it by om undii this Act or the Schume
and all charg s o> expenses incurr dmcoancction thar with shetl, wath out
prj dice to any o.h 2 mod: o. recovery, be iccovei. ble as an 2riear On
public revenue Cue cn iand undei the piovssions of the Revenue
Recovery Act for the time bemz m foc.
12. Dectors of Board etc. to be pubhe servants —Cvcry Ducctor of the
. Board, the Fund Mnig?) aad o.he1 odicers and inembers of the staff of the
Boi d adno.nted un ie: sub-section (1) of section 10 shill be de+med iv be
pubic servenis within the mearingofsection 21 of the Indsan Penal Code
(Cent.al Act 43 of 1860).
13. Protzctionfor acts donz 11 goodfaith.—Nosuit or other legal proceeding
shall Le agamst auy director of tne Bowd or any ocher veison in respect of
anything which is in good faith, dene or intended to be done under this Act
or vndcr the scheaine.
14. Power of Gover iment to issue dir:thons.—(1) Notwithstanding anything
contein din this Act it shall be la ful for the Government to issue direcuons
ie the Board 12 matteis ielating to Siate and National policics and such
directicns shell be bina:ng en the Board.
(2) The Government m2y, after consultation with the Boa:d, give to
tne Boi d general duections to be fullowed by the Board
(3) Inth. execc.s: ofthe powei, and performance ofits duties under
this Act, the Bo id shail not depart from any genera! dir®ctionissuedunder
sub-section (2) cv\cept with the pi.vious permission of the Government.
e e
15. Accounts and audit —(1) The Boaid shall maintain such books of
accounts and othe books in relation to its accounts and piepate an annual
statement ofaccounts and balance ».heet in such form and in suchmanne) ay
may be specificd in the Scheme.
(2) The accounts of the Board shall be audited by such auditor, in
such mannerand at such time es the Government may, bygencial or special
order, directand the auditor so appointed shall have such powers of:equiring
the production ofdocuments and the furnishing of information in respect of
such mattets.
 

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(3) The accounts of the Board as certified by the auditor together
with the audit report thereon shall he forwarded annually to the Government
who may issue such directions to the Board as they mey dcem fit and the
Board shall comply with sack directions
16. Annual report and audited statement ofaccourts —(1) The annual seport
of the Board shall be prepared under the direct'on of the Board and after
approval by the Board 2 copy ofthe zero:t shell be submitted to Government
before the end ofJuly cverv yerr
(2) The Government shell, as soon as the annual report js recenved,
cause the sime tozcth: with the 2. dited stetement ofaccounts to be laid on
*the Table of the Legilatrve Assembly.
17. Power to order wnguiry —(1) The Government may, at any tme,
appoint any person to inquire into the wo-king of the Board and to submit
a report to the Government.
(2) The Board shall gwe the nerson so eppomtedell fecilities for the
proper conduct ef the 1:quny end furnish to him «ch documents, accounts
and information in the nossvssion of the Bord as he may 1cquire.
18. Dissolution of the Board.—(1) If the Governmentfor any :e2son are
ofopimon that it 1s not tecessary to continue the Bord they mey, by noufi-
cation in the Gazette, dissolve the Board fiom such date es may be specificd
therein.
(2) Upon the peLhecation of 2 nonficaton under stb section (1)
dissolving the Board,—
(a) the Chairman end all the other Dnictors cf the Boaid shall,
as from the date of dissolytion, vacate then offices 2s such;
(b) all the powers and functions which mvy, by or under the
provisionsofthis Act, be excicised and perfo.m d by ot on beh Ifof the Board
and the Chauir.t.an shall, as fio.n the dace uf dost .0n, be exercised and
pertozmed by the Governme.t ur such 2 tho.ity 0: pe.son as thry may
apnoist in thise beualf;
(c) all funds and othe: propertics vested in the Board shell vest
in the Government, and
(d) all liabiliues legally subsisting and enforceable against the
Board shall be enforceable against the Government to the extent of the
funds and propertics vested in thein.
(3) Nothing in this section shall affect the lability ofthe Government
m respect of bonds or debenturcs guaranteed by the Government.

 
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19, Bar ofjurisdiction ofC-vil Courts—No Cavil Court shall have jurisdic-
tion to settle, decide or deal with any question or to determine any matter
which is by or under this Act or Scheme required to be settled, decided or
dealt with or to be determined by the Government or the Board or any
officer authorised by the Goveinment or the Board.
20. Removal of difficulties —(1) If any difficulty arises in giving effect
to the provisions ofthis Act, the Government may, as occasion mayrequired,
by order, do anything not inconsistent with this Act or the Scheme made
thereunder, which appears to them necessary for the purpose of removing
the difficulty.
(2) Every order made undersub-section (1) shall be laid on the table
of the State Legislative Assembly.
21. Modification ofthe Scheme—(1) The Governmentmay, by notification
in the Gazette, add to, amend or vary the Scheme either prospectively or
retrospectively.
(2) Every notification undersub-section (1) shall be laid, as a_ soon as
may be after it is issued, before the Legislative Assembly while it is in
session for a total period of fourteen days which may be comprised ir one
session or in two successive sessions, and if, before the expiry of the session
in which it is so laid or the session unmediately following, the Legislative
Assembly makes any modification in the noufication or decides that the noufi-
cation shall not be issued, the notification shall thereafter have effect only
in such modified form or be of no effect, as the case may be, so however
that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that notification.
22. Repeal and saving.—(1}) The Kerala Industrial Revitalisation Fund
Ordinance, 1999 (1 of 1999), 1s hereby repealed. °
(2) Notwithstanding such repeal, anything done of demand to have
beer donc or any action taken o1 deemed to have been taken under the said
Ordinance shall be deemed to have been done or taken under thisAct.
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