The Kerala Grandhasala Sangham (Taking Over of Management) Act, 1977 (No.19 of 1977)

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THE KERALA GRANDHASALA SANGHAM (TAKING OVER 
OF MANAGEMENT) ACT, 1977 
Preamble. 
Sccttons 
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(Act 19 of 1977) 
CONTENTS 
Short title and commencement. 
Definitions. 
Board to take over manf gement of the undertaking of the Grandha· 
sala Sangham. 
Effect of notifif'd order issued under se~tion 3. 
Contracts in bad faith, etc , may be cancelled or varied. 
No right to compensation for termination of office. 
Applicability of Kerala Non-trading Companies Act and Articles 
of Association . 
Conditions of service, etc. of existing employees. 
Power of Government to cancel order notified under section 3. 
Duty to deliver poc;session of property and documents re-lating 
thereto. 
Duty to fUI nish particulars. 
Powers of Inspection. 
Penalty for false Hatement. 
Limitation on prosecution. 
ProtectiOn of action taken w1der the Act. 
Over-riding effect of Act. 
Payment of remunera1ion and expenses out of the funds of Gran-
dhasah Sangh:1m. 
18. Power of Government to give dire<"ticru:, 
19. Power to make rules. 
20 Power' to remove difficulties. 
?.1. Repeal and saving. 
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THE-KERALA GRANDHASALA SANGHAM (TAKING OVER 
OF MANAGEMENT) ACT, 1977 * 
(ACT 19 OF 1977) 
An Act to provzde for the takzng over zn the publtc murest of the manngement of the 
.; undertakmg oj.the Kerala Grandhasala Sangham, wzth a mew tn ensurt'lg the 
proper workzng_of that Sang~am and for matters connected thercwzth or mctdmtal 
thereto. 
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Pteamble -WHEREAS in the mtercst of the libraries,m tht? State and 
in the pub he interest it i~ necessary to provide for the taking over of the 
management of,the undertaking of the Kerala Grandhasala Sang ham by the 
State for a limited period w1th a view. to ensunng the proper working of that 
Sangham and for matters connected thercw1th or incidental thereto , 
BE it enacted in the Twenty-eighth Year of the Republic of India as 
follows:-
CHAPTER J 
PRELIMINARY 
1. Short tztle.and commencement.-( I) Th1~ Act may be called the Ke1<1la. 
Grandhasala Sangham (Taking over of Management) Act, .1977. 
(2) It shall be deemed to have come into force on the 16th dd>' of 
March, 1977. • 
2. Defttz•ttons.-I n this Act, unless the-context ·othe1 wise requires,-
( a) "::trticles of association" means the·articles of association of the 
Grandhasala Sangham; 
(b) "district committee" means a district committee constituted· 
unrler article 24(a) of the articles of association; 
(d) 
(e) 
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''executive committee" means the executive committee of the 
Grandhasala Sangam refern:d· to m article 24 of-the articles of 
association, 
"governing council" means the governing councd of the 
Grandhasala Sangham·constttutcd under article 24 of the.articles 
of association; 
·•Grandhasala Sangham" means the Kerala Grar.dhasala 
Sangham registered under the Travancot e· Companies Act, 1114 
(JXoflll4); 
"not1fied order" means ·an order notified in the Gazette; 
"' Recetved the a~scnt of the Pres1dent on the 12th day of Au~ust, 
1977 and published m the Kcrala, Gazette Extra ordm..try No. 4-76 dated 
12th August, 1977. 
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(g"t "prescribed" means prescribed by rules made under this Act; 
(h) '·taluk union committee" means a taluk union committee 
referred to in clause (3) of article 38 of the articles of 
dssociation; 
(1) '·undertaking" mcludes all assets, rights, leaseholds, powers, 
::~.uthorities and privileges and all property, movable and immo­
va!:>le, including lands, bmldmgs, stores, equipments, auto­
mobiles and other vehicles, cash balances, reserve fund, 
investments and book debts and all other rights and interest 
arising out of such property as were immed1ately before the 
date of the notified order under subsectton ( 1) of section 3, in 
the ownership, possession, power or control of the 
Grandhasala S-.ngham, and all hooks of account, registers and 
all other documents uf whatever nature relating thereto. 
CHAPTER II 
Tn.~-.lN'G OVER OF MANAGEMENT OF TbiE UNDERTAKING 
OF GRANDHASALA SA \GHAM 
3. Board to take over management of the undertaking of the Grandhasala 
Sangham -{ 1) Th~ Government may, by notified order, appoint a body of 
persons ( herema fter referred to as the 'Board of Control') to take over the 
manage.nent of the undcrtakmg. 
(2) The Board of Control ~hall consist of a Chairman and such 
number of other members not exceeding te"l as the Government may think 
fit, to be appJm~ed by the Government. 
(3) The Governmmt may, either in the notified order issued under 
subsection ( 1) or in a subsequent order, spec1fy that one or more of the 
members of the Board of Control shall be full-time member or full time 
members thereof. 
(4) The term of office uf, the procedure to be followed in the 
discharge of thetr functions by, and the manner of filling vacancies among, 
the members of the Board of Lontrol shall be such as may b~ prescnbed. 
(5) The salaries. allowances and other remuneration and the 
conditions of servtce of the members of the Board of control shall be such as 
may be determmed by the Government. 
(6) Am notified order issued under sub-section (I) shall remain in force 
for such period not exceedmg two years as may be specified m the order: 
Provtded that if the Government are of opinion that in order to secure 
the proper mai1agement of the undertaking It is expedient that any such 
notified order should contmuc m fi)rce after the exptry of the penod specified 
in that order, they rn1y, from r1me tn time, by notification m the Gazette, 
extend such period IJy not more than six months at a time, but no such 
notified order shall in any case remam in force for more than five years. 
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4. • Effect of notifzed order usued under sectzon 3.- (I) On the issue of a 
notrfied order under section 3 appointing a Boa"d of Co ncr ol to take over the 
management of the undertaking,-
(a) all persons in charge of the management of the Grandhasala 
Sangham, including the President: Vice-President, General Secretary, Joint 
Secretanes and Treasur cr and ~>thcr members of the governing council, 
members of the executive committee and members of the district committees, 
and taluk umon committees ;hall be deemed to have vacated their offices, 
as such; 
(b) the Board of Control shall alone be entitled, notwithstanding 
anything contained in any law for the time being m force, to ex:ercise all the 
powers of th{ goverr,mg council, executive c:ommittee, district committees 
and tl'lluk union committees; 
(c) as from the date of the n,,trfied order, the undertaking of the 
Grandhasala Sangham shaii be deemed to be in the custody of the Board of 
Control who slnll. as ~oon as may be after such aatc, take such step; as may 
be necessary to take into its possession or under its cont10l all properties) 
assets and effect\ and all actionable clarms comprised in the undertakmg. 
(2) Subject to the other provis10ns rontarned m this Act and to 
the control of the Government, the Board of Control shall take such steps 
as may be necessary for the purpose of efficiently managing the affau s of the 
Grandha~ala Sangham and shall c:xercise such other powers and have such 
other duties as may be prescribed. 
5. Contracts tn bad faith, etc., may be canc~lltd or vaned.- Without prejudice 
to the provisions contained in section 4, the Board of Control may, w1th the 
previous :rpproval of the Government, make an applicatiOn to any court 
having jurisdtctwn 1:1 th1s behalf for the purpose of cancellrng or varymg any 
contract or agreement entered into at any trme before the issue of the notified 
order under sub-se.ction (I) of section 3, between the Gra 'dhasala Sang ham 
and any other person, and the court may, if satisfied after due enquiry that 
such contract or agreemt>nt had been entered into in bad faith and is detri­
mental to the interest of the Grandhasala Sang ham, mak'! an order cancelling 
or varying (either unconditionally or subject to such conditions as it may 
think fit to Impose) that contract or agreement, and the contract or agree­
ment shall cease to have effect or, as the case may be, have effect subject to 
such variations. 
6. No rzght to compensaltort jar tcrmilzatzon of offzce.-Notwithstanding 
anything contained in any law for the time being m force, no person who 
ceases to hold any office by reason of the provisions contained in clause (a) 
of sub-section (I) of section 4 shall be ent1tled to any compensation for the 
loss of office: 
Provided that nothmg contamed in this sectiOn shall affect the right o( 
any such person to recover from th~ Gr,mdhasala Saugham moneys reco­
verable otherwise than by way of such compensation. 
7. Appluabzlity of ·Kfrala Nmz-tradmg Compames Act mzd ·Artu;tes oj 
Assoczatzon. -(1) Notwuhstanding anythmg contamed in the Kerala Non­
Trading Companies Act, 1961 ( 42 of 1961), the Artrcles of Assocration of 
the Grand has ala Sangham shall stand suspended for the period durmg whKh 
Lhe notified order under su')·secuon ( 1) of :.ection 3 is m force. 
(2) Subject to the provi~wns contamed m sub-section (1) and to the 
other provrsion~ contained in this Act and subject to such exceptions, 
restrict•ons and lrmitations. If any, as the Government may, by notrfication 
in the Gazette, specify in tlus hch df, the Kera1a Non-tradmg Companrcs 
Act, 1961 (42 of 1961), shall contm•Je to apply to the Grandhasala ~angham 
in the same manner a~ rt applied theretorbefore the issue of the notified order 
under sub-section (I) of sectiOn 3. 
8. Co11dtttons of servzce, etc. of exzstzng employees -(1) Every officer or 
other employee employed, rmmcdratcly belore the date ot the notified ordc:r 
under sub-sectwn (1) ol se~tion 1, 111 connectron with the affarrs ofthe under­
takmg shall, durmg the period in whrch ~uch noufied order is 10 force, hold 
his office by the same tenure, at the sane remuneratron and npon the same 
terms and conditions and wrth the ~arne rights and pnvrlegcs as to gratUity 
and other matter~ as he would have held under the Grandhasala Sangham 
I r SUCh nOtified 01 der had not been issued, 
(2) Where the GrandhJ.~ala Sangharn has establrshed a prov1dent, 
s• lperannuation, welfare or any other fund for the benefit of its officers and 
o~her employees, such fund shall, with effect on and from the date of the 
n')tified order under sub-secticn (I) of section 3, stand transferred to, and 
vested in, the Boa1 d of Control 
9 Power of Govemment to cancel order 11otljzed wzder sectzotz 3 -If at any 
t1me it appears to the Government on the ap;:.>hcation of any member of the 
Grandbasala Sangham or otherwise that the pur pose of the notified order 
under sub-section ( 1) of se<.tion 3 has been fulfilled or that for any other 
reason 1t is not necessary that the ordc1 should rem1in in force, the Govern­
ment may, by notrficr{ order, cancel ~uch order. 
CHAPTER Ill 
MISCELLANEOUS 
10. Duty to delzver poHeHtOIZ of p1ope1ty and documents relatmg thereto.­
(1) As suon as may be after the issue of the notified order under.mb-~ection 
(I) of section 3, every person having possessron, custody or control of any 
property of the Grandhasala Sangham shall de !rver the property to the Board 
of Control or to any such person as may be•authorised by the Board in this 
behalf 
(2) Any person wf o on the commencement of th1s Act, bas in 
his pos~ess10n or under his control ·any books, documents or other papers 
rdating to the undertaking, including any letters or other fNnmunications 
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between him and the Grandha•ala Sangham, shall, notwithstanding anything 
contained in any law for the time being in force, be liable to account for the 
said books, documents and other oapers (including such letters or other 
communications) to the Board of Control and shall deliver them up to the 
Board or to any such person as may be authorised by the Board in this behalf. 
(?.) The Government may take all necessary steps for securing 
possession of all properties of the Grandhasala Sang ham. 
11. Dutytofurnishparticulars.-The Grandhasala Sangham shall, with!O 
ten days from the date of the notified order under sub-sect1on (I) of section 3 
or w1thin such further period as the Government may allow m this behalf, 
furnish to the Board of Control a complete inventory of all the properties and 
assets (including particulars of booklets and investments and belongings) 
of the Sangham at the commencement of this Act and of all the liabilitis 
and obhgations of the Sangham subsisting at ~uch commencement and also 
of all agreements entered into b~ the Sangham and in force at such com­
mencement. 
12. Powers of tnspection.-( I) For the purpose of a~certaining whether 
any property is the property of the Grandhasala Sangham or for any other 
purpose mentioned in this Act or the rules made theceunder, any person 
authoriced by the Government in this behalf shall have the right-
(a) to enter and inspect any premises; 
(b) to require any person havmg the possession, custody or control 
of .:J.ny reg"Jster or record of the Grandhasala Sangham to 
produce such register or 'ecord. 
(c) to require the occupier of any property belonging to, or claimed 
to be the property of, the Grandhasala Sangham, to submit to 
the person so authorised such accounts, books or other docu• 
ments or to furnish to him such mformation as he may 
reasonably think necessary; and 
(d) to examine any person havmg tlic control of, or employed in 
connect1on with, the Grandhasala Sangham and to require 
him to make-any statement touching the affairs of the Sangham. 
(2) Any person authonsed by the Government under sub-section (1) 
shall be deemed to be a public servant within the meaning of section 21 of 
the Ind•an Penal Code (Central Act 45 of 1860). 
13 Penalty for false statement.-( I) If any pcrson.-
(a) when required by this Act or by any order made under this 
Act to make any statement or furnish any informatiOn, makes 
any statement or furmshes any informatton which is false in 
any matenal particular and which he knows or believes to be 
false or does not believe to be true; or 
(b) makes any such statement as aforesaid in any book, account, 
record, return or other document which he is required by 
any order made under this Act to mbmit, 
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he shall be puni~hable with imprisonment for a trrm which may extend to 
tWO vears. or with fine wh1ch may extend to t~o thousand 1 upecs, OI w1th 
hLth: 
(2) Any person who-
(a) having in his p.lssession cm,tody 01 control any propcdv form· 
ing part of the assets of the Grandhasala San;;ham, wrongfully 
withholds such property from the Boa1d of Control; or 
(b) wrongfully obtains possessiOn of any prope1ty forming pa1 t of 
the asset~ of the Grandhasala Sang ham, or 
(c) wilfully withholds or fails to produce tn any pe1 son authonsed 
unde1 this Act, any reg1ster, record ,or other document wh1ch 
mav be m his pos~ession, custody or control; 01 
(d) fails without any reasonable cause to submit any accQunts, 
book~ or other documents when reqUJred to do so, 
shall be punishable with unp1 io;onment for a term which may extend to two 
years, or with fine which may extend to two thousilnd 1 upees, or with both. 
14. Lzmitatton on ptosecution.-No court shall take cognizance ol an 
offence punishable under tillS Act except with the pi evious sanct,on of the 
Government or of an officer authorised by the Gove111ment in this behalf. 
15. Protectzon of actzon taken Utlder the Act -No SUit, prosecution or other 
legal proceedings shall lie against the Gove1 nment Oi the Board of Control 
or any member thereof or any other person f01, anything which is in good 
faith done or intended'to be done under th1s Act 
16. Over-nding effect of Act.-The provisions of tl,is Act or any rule 
or order made thereunder shall have effect notwithstandtng an)'thing 
incons1~tent therewith contamed m any law other than th1s .'\.ct or any 
instrument having cff;!ct by v1rtue of any law other than th1s Act. 
1 7 Pa;ment of remunerotwn and expenses out of the funds of Grandhasala 
Sangham -All salanes, allowances and other remuneration patd to the 
Chrurman <\nd other members of the Board of Control 01 any other person 
who may be appomted or employed m connectiOn With 'he allatrs of the 
management of the Grandhasala Sangham arid all other rxpenses duly 
incmred m connection with such m<lnagcment shall be paid out of the funds 
of the GrandlHsala Sangham. 
18. Power of Govemm,ent to gwe dirutzons.-Notwithstanding anything 
contained m the foregomg provisions of this Act, the Government may giVe 
such duccuons to the Board of Control, .. s the Gove1 nmcnt may deem fit, 
for the proper management of the unde1 taking of the Grandha~ala Sangham 
and the Board of Control ~hall comply wtth ~uch rlircctwns. 
19. Power to make ruiPs.- ( 1) The Government may, by notification 
tn the Gazette, make rules to carry out the pUI po~e~ of th1s Act. 
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(2) Every rule made under this Act, shall be laid, as soon as may 
be after it is made, befort> the Legi~)atlve A~sembly wlnle it 1s JR session for 
a total per •od of fourteen days which may be comprised in one sessiOn or m 
two successtve ~cssions, and Jf, before the cxp Iry of the sessiOn in which it is 
so la1d, OI' the scs~ron unmcdi,\tely followmg, the Lcgrslatlve Assembly m<tkes 
any modification m the 1ule or decides that the rule should not be made, 
the rule sha)i thereafter have effect on! y in such modified form or be of no 
effect, as the case may be, so however that any such modification or annul­
ment shall be without preJudrce to the validity of anything previously done 
under that rule. 
20 Power to remove diffzcultzes.-If any difficulty arises in giving effect 
to the provrswns of this Act, the Government may, by orde1, as occasron 
require,, do anythmg not mconsistent wi1 h the provisions of this Act which 
appears to them to be necessary for tht> pUipose of removmg the difficulty: 
Provided that no such OI der shall be made after the e>.p1ry of two years 
from the commencement of this Act. 
21. Repeal and saving.-(!) The Kcrala Grandhasala Sangham 
(Takmg Over of Management) Ordinance, 1977 (I I of 1977), is he1cby 
repealed. 
(2) Notwithstanding such repeal, anythmg done or deemed to have 
been doae or any act10n taken or de(·med to have been taken under the said 
Ordmance shall be deemed to have been done or taken under th1s Act. 
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