LexThe KERALA COIR WORKERS WELFARE FUND ACT 1987
Kerala · state statute
Open in Lexace · Ask the AI about this actTHE KERALA COIR WORKERS’ WELFARE FUND ACT, 1987
(ACT 34 OF 1987)
CONTENTS
Preamble.
Sections:
1. Short title, extent and commencement.
2. Definitions.
3. Coir Workers’ Welfare Fund Scheme.
4. Contribution payable to the fund.
5. Modification of scheme.
6. Constitution of Board.
7. Term of office of Directors.
8 Removal of non-official Directors.
9. Appointment of officers and staff.
10. Power of the Board to borrow.
11 Determination of amount due.
12. Provisional assessment and collection of contribution.
13. Mode of recovery of money due from coir workers, self-employed persons,
employers, dealers and producers of coir products.
14. Priority of payment of contribution over other debts.
15. Employer not to reduce wages etc.
16. Directors of Board etc., to be public servants.
17. Penalty.
17A. Opportunity before imposing penalty.
17B. Punishment for non-payment of penalty.
17C. Power of Officers to impose penalty.
17D. Compounding of Offences.
17E. Mode of Recovery of money due from any person.
18 Offences by Companies.
19. Power to recover damages.
20. Protection for acts done in good faith.
21. Directions by Government.
22 Power to order inquiry.
23. Power to supersede the Board.
24. Audit of accounts of the Board and remuneration of auditors.
25. Annual report and audited statement of accounts.
26. Bar of jurisdiction of civil courts.
27. Special provisions for transfer of accumulation from welfare funds established by
any Acts or agreement.
28. Removal of difficulties.
29. Pover to make rules.
ANNEXURE.
SCHEDULE.
_____
ACT 34 OF 1987
THE KERALA COIR WORKERS’ WELFARE FUND ACT, 1987*
An Act to provide for the constitution of a fund to grant relief to, to promote the welfare of,
and to pay pension to coir workers and self employed persons in coir industry in the
State of Kerala.
Preamble.— WHEREAS it is expedient to provide for the constitution of a fund to grant
relief to, to promote the welfare of, and to pay pension to coir workers and self employed
persons in coir industry in the State of Kerala and for certain other matters incidental thereto;
BE it enacted in the Thirty-eighth Year of the Republic of India as follows:-
1. Short title, extent and commencement. — (1) This Act may be called the Kerala Coir
Workers' Welfare Fund Act, 1987.
(2) It extends to the whole of the State of Kerala.
(3) This section shall come into force at once, and the remaining provisions of this
Act shall come into force on such date as the Government may, by notification in the Gazette,
appoint; and different dates may be appointed for different provisions of this Act:
Provided that the provisions relating to payment of pension shall be deemed to have
come into force on the 1st day of April, 1987.
2. Definitions. - In this act, unless the context otherwise requires,—
1[(a) “Appellate Authority” means the appellate authority under sub-section (4)
of section 11];
2[(aa)] “Board” means the Kerala Coir Worker’s Welfare fund Board constituted
under section 6;
(b) “Chief Executive Officer” means the Chief Executive Officer appointed under
sub-section (1) of section 9 ;
3[(c) “coir products” means mats and mattings, rugs and carpets, fibre, yarn,
rubberised coir products and other articles manufactured wholly or partly from fibre, yarn or
pith and includes such products of coir backed with PVC, rubber or any similar backing
material;]
* Received the assent of the Governor on the 28th day of December, 1987 and published in the Kerala Gazette
Extraordinary No. 1085 dated 31st December, 1987.
1 Inserted by Act 9 of 2025 (w.e.f. 30th October, 2025).
2 Re-lettered by Act 9 of 2025 (w.e.f. 30th October, 2025).
3 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
(d) “coir worker” means any person who is employed for wages to do any work
in connection with the various processes in coir industry and who gets his wage directly or
indirectly from the employer, dealer or producer of coir products 4[and includes a floating
worker or any person] employed by or through a contractor or through an agent and depends
mainly on coir industry for his livelihood, and includes any other person employed in coir
industry, whom the Government may by notification in the Gazette from time to time declare
to be a coir worker for the purposes of this Act:
5[Explanation.—If any question arises as to whether a person is or is not a coir worker
for the purpose of this Act, the matter shall be referred to the concerned Project Level
Advisory Committee of trade unions in coir industry constituted for such Coir Project area
for the purpose for decision and an appeal shall lie to the Board against the decision of the
Project Level Advisory Committee;]
6[(da) “Compounding Officer” means an officer designed by the Government
under section 17D;]
(e) “contribution” means the sum of money payable to the fund under section 4 ;
(f) “dealer” means any person who is engaged in the business of purchase, sale,
or storage for sale, of husks or fibre 7[or pith] or coir yarn any coir products or a person who
rets husks and includes an agent of a dealer but does not include a cultivator who sells, or
stores for sale, raw husks owned by him 8[and the Kerala State Co-operative Coir Marketing
Federation and the Kerala State Coir Corporation Ltd;]
(g) “Director of coir Development” means the Director of Coir Development for
the State of Kerala;
(h) 9[“employer” means any person who directly employs whether on behalf of
himself or for any other persons one or more coir workers to do any work in connection with
the processes in coir industry;]
10[(ha) “exporter” means any dealer or producer of coir products who exports coir
products to any country outside India from ports within the State of Kerala and any such
person who produces in or procures from Kerala such coir products and exports them to any
country outside India from ports outside the State of Kerala;]
(i) “family” means the husband, wife and their children;
4 Substituted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
5 Substituted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
6 Inserted by Act 9 of 2025 (w.e.f. 30th October, 2025).
7 Inserted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
8 Added by Act 9 of 1998 ( w.e.f. 30th September, 1997).
9 Substituted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
10 Inserted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
(j) “fibre” means coir fibre extracted from coconut husk 11[with or without the use
of machinery.]
12[(ja) “floating worker” means a coir worker who works for more than one
employer, dealer or producer of coir products;]
(k) “fund” means the Coir Worker’s Welfare Fund established under section 3 and
the scheme;
(l) “husk” means coconut husk, green, dry or retted;
(m) “member” means a member of the fund;
(n) “person” includes a Company, a firm, an association of individuals or a Co-
operative Society registered or deemed to be registered under the Kerala Co-operative
Societies Act, 1969 (21 of 1969);
13[(na) “pith” means the pith obtained from husk in the process of extracting fibre
from husk;]
(o) “prescribed” means prescribed by rules made under this Act;
(p) 14[“process in coir industry” means retting raw husks, taking out and counting
retted husk, peeling the outer layer of retted husks, extracting fibre from husk, cleaning fibre,
spinning yarn, drying and bundling fibre and yarn, rehanking yarn, making coir products,
dyeing, shearing and allied process in finishing coir products with or without the use of
machinery and includes packing and such other activities which the Government may, by
notification in the Gazette, from time to time, declare to be a process in coir industry;]
(q) 15[“producer of coir products” means a person who manufacture coir products
or carries on the business of processing coir products for export or for internal marketing;]
(r) “Schedule” means the schedule to this Act;
(s) “scheme” means a scheme framed under this Act.
(t) “self-employed person” means a person other than a coir worker, who is
engaged in the extraction of coir fibre, spinning yarn and manufacture of coir products for
other person and depends mainly on coir industry for his livelihood;
(u) “yarn” means the coir yarn obtained by the spinning of fibre;
(v) “year” means the financial year.
11 Added by Act 9 of 1998 (w.e.f. 30th September, 1997).
12 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
13 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
14 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
15 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
3. Coir Worker’ s Welfare Fund Scheme.— (1) The Government may, by notification in
the Gazette, frame a scheme to be called the Kerala Coir Workers Welfare Fund Scheme for
the establishment of a fund under this Act for the welfare of the coir workers and self
employed persons in the coir industry and there shall be established, as soon as may be after
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 contributions specified in section 4;
(b) the amount borrowed by the Board under section 10;
(c) damages realised under section 19 ;
(d) grants or loans or advances made by the Government of India or the State
Government or the Coir Board or any institutions;
(e) any donations from whatever source;
(f) any amount raised by the Board from other sources to augment the resources
of the Board ;
(g) fee levied under the scheme;
(h) 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 constituted under
section 6;
(4) The fund may be utilised for all or any of the following purposes, namely:-
(a) for payment of pension,—
(i) 16[to a member who has completed the age of sixty years and had valid
membership in the Fund for a minimum period of five years:
Provided that the minimum period of five years membership in the Fund shall not be
insisted,—
(a) to a member who become disabled to do any normal work, in connection with
the various processes in coir industry, or
(b) to a member who subscribed to the Fund with effect from the 18th day of
January, 1989 and attained the age of sixty years before the 17th day of January, 1994:
16 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
Provided further that a member who has valid membership for a minimum period of
thirty years in the Fund and who retires voluntarily, shall also be eligible for pension even if
he has not attained the age of sixty years.]
(ii) to a person who before the 17[30th day of September, 1989] was a coir
worker or a self employed person and completed the age of sixty years or who suffers from
permanent disablement and is of out of employment;
18[(iii) to a person who, before the 30th day of September, 1989, was a coir
worker or self employed person and who has not become a member of the Fund and has
completed the age of sixty years before the 30th day of September, 1997, if he pays to the
Fund an amount equivalent to the contribution payable by him, had he been a member for the
period from the 1st day of October, 1989 to the date of completion of sixty years, within a
period of nine months from the 30th day of September 1997;]
19[(b) for payment of family pension to the spouse of deceased member or if the
deceased member was a widow or a widower to the minor children;
20[(ba) for payment of any other retirement benefit;]
(c) for payment of financial assistance to a member who suffers from permanent or
temporary disablement;
(d) for payment of loans or grants to a member to meet the day to day expenses
during off season or to meet expenses for the 21[marriage of daughters] or for expenses in
connection with disease or death of dependents or for expenses in connection with the
education of children or for expenses for construction or maintenance of houses;
22[(da) for payment of loans or grants to a female member, to meet the expenses in
connection with her own marriage;
(db) for payment of financial assistance to the dependents of a deceased member to
meet the expenses in connection with the death of that member;]
(e) to provide maternity benefits to women workers engaged in coir industry who
are not eligible for such benefits under any other law for the time being in force;
(f) to provide for distress relief to the family of a member affected by natural
calamities and epidemics;
17 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
18 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
19 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
20 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
21 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
22 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
(g) to provide for the coir workers, self-employed persons and members of their
families,—
(i) medical facilities;
(ii) nurseries and creches;
(iii) education, vocational training and facilities for part time employment;
(h) for implementation of any other purpose specified in the scheme.
23[Provided that a member shall be eligible for financial assistance under clauses (c),
(d), (e), (f), (g) and (h) of sub-section (4), only if he has subscribed to the Fund for a
continuous period of two years:
Provided further that two years period of membership shall not be insisted in the case
of permanent disablement or accident or death of a member who was not a defaulter of the
Fund.]
(5) Subject to the provisions of this Act, the scheme framed under sub-section (1) may
provide for all or any of the matters specified in sub-section (4) and in the schedule.
(6) The scheme shall be laid, as soon as may be, after it is framed, before the
Legislative Assembly while it is in session for a total period of fourteen days which may be
comprised in one session or in two successive sessions, and if, before the expiry of the
session in which it is so laid or the session immediately following, the Legislative Assembly
makes any modification in the scheme, the scheme shall thereafter have effect only in such
modified form, so however that, any such modification shall be without prejudice to the
validity of anything previously done under the scheme.
24[4. Contribution payable to the Fund . — (1) Every coir worker and self employed
person shall contribute to the Fund 25[twenty rupees] per month and the contribution by the
coir worker shall be paid directly or through the employer:
Provided that a coir worker or a self employed person who has not become a member
of the Fund before the 30th day of September, 1997 shall become a member of the Fund if he
pays to the Fund an amount equivalent to the contribution payable by him, had he been a
member for the period prior to the 30th day of September, 1997 within nine months from the
said date:
Provided further that the arrears of contribution, if any, for any period prior to the
30th day of September, 1997, payable by a member shall be allowed to be paid waving
interest and penalty if such payment is made before the 30th day of September, 1998.
23 Added by Act 9 of 1998 (w.e.f. 30th September, 1997).
24 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
25 Substituted by Act 31 of 2021 ( w.e.f. 17th February, 2021).
(2) Every employer, producer of coir products and dealer shall pay to the Fund a
contribution at the rate shown in the Annexure per year.
(3) 26[The Government shall contribute to the Fund every year an amount equal to
fifty percent of the amount contributed by the coir workers and self-employed persons, by
way of grant, subject to a maximum of rupees ten per capita, per month.]
(4) Every exporter shall with effect from the 1st day of October, 1989 pay to the
Fund every year an amount equal to 0.75 per cent of the F.O.B. value of his annual exports by
way of contribution:
Provided that the contribution payable by producers of coir products, dealers or
exporters, as the case may be, till the 30th day of September, 1997 shall be calculated at the
revised rates and excess payments, if any, shall also be adjusted against future payments and
arrears, if any, may be allowed to be paid in suitable quarterly instalments not exceeding
twenty, after waiving interest and penalty on such arrears:
Provided further that the installment facility for payment of arrears and waiver of
interest and penalty shall be extended only if the current contributions are paid without
default along with instalments of arrears.]
(5) Every producer of coir products and every dealer shall contribute to the fund an
amount equal to one percent of their sale proceeds in a year.
(6) The contribution shall be paid to the Chief Executive Officer or to any officer of
the Board authorised by the Board in this behalf.
(7) Where the amount of any contribution payable under this Act involves a fraction
of a rupee, the scheme may provide for the rounding off of such fraction to the nearest rupee.
[27(8) The Government may, by notification in the Gazette, revise the rate of
contribution specified in sub-sections (1), (2), (4) and the rate of grant specified in sub-
section (3).
(9) Every notification under sub-section (8) shall be laid, as 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 in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately following, the
Legislative Assembly makes any modification in the notification or decides that the
notification should 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.]
26 Substituted by Act 31 of 2021( w.e.f. 17th February, 2021).
27 Inserted by Act 31 of 2021 (w.e.f. 17th February, 2021).
5. Modification of scheme.— (1) The Government may, by notification in the Gazette,
add to, amend or vary the scheme either prospectively or retrospectively.
(2) Every notification under sub-section (1) shall be laid, as 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 in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately following, the
Legislative Assembly agrees in making any modification in the notification or decides that
the notification should 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.
6. Constitution of Board. — (1) The Government may, by notification in the Gazette,
constitute, with effect from such date as may be specified therein a Board to be called “the
Kerala Coir worker’s Welfare 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 name aforesaid, having perpetual
succession and a common seal and shall by the said name sue and be sued.
28[(3) The Board shall consist of fifteen Directors as may be appointed by the
Government and they shall consist of,—
(i) five Directors representing coir workers and self employed persons;
(ii) one Director each representing Government in the Industries and Finance
Departments ;
(iii) one Director representing Coir Board ;
(iv) Director of Coir Development ;
(v) Chief Executive Officer of the Board; and
(vi) five Directors representing exporters, dealers, employers, producers of coir
products and Coir Co¬operative Societies registered or deemed to be registered under the
Kerala Co-operative Societies Act, 1969 (21 of 1969).]
(4) One of the members of the Board shall be appointed by the Government to be its
Chairman.
(5) The Government shall publish in the Gazette the names of all the Directors of the
Board.
28 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
(6) The Board shall administer the fund vested in it in such manner as may be
specified in the scheme.
(7) The Board may, with the previous approval of the Government, delegate to the
Chairman or to any Director of the Board or to the Chief Executive Officer, such of its
powers and functions under this Act or the scheme as it may consider necessary for the
efficient administration of the fund, subject to such restrictions and conditions, if any, as it
may specify.
7. Term of Office of Directors. — (1) A Director appointed under sub-section (3) of
section 6 shall hold office for a period of three years.
(2) Notwithstanding anything contained in section 8, the Government may, at any
time, for reasons to be recorded in writing, remove from office any Director of the Board
after giving him a reasonable opportunity of showing cause against the proposed removal:
Provided that it shall not be necessary to record in writing the reason for the removal
or to give an opportunity of showing cause against the proposed removal, if the Government
are of the opinion that it is not expedient in the public interest, to record the reasons in
writing or to give such opportunity.
(3) Any Director may resign his membership by giving notice in writing to the
Government, but shall continue in office until his resignation is accepted by the Government.
8. Removal of non-official Directors.— (1) The Government may, by notification in the
Gazette, remove any non-official Director of the Board from office,-
(a) if he has, without the permission of the Board, been absent from the meetings
of the Board for three consecutive meetings:
Provided, however, that such absence may be condoned by the Board before the
publication of the notification in the Gazette;
(b) if he, in the opinion of the Government, is unsuitable or has become incapable
of acting as a Director or has so abused his position as a Director as to render his continuance
as such Director detrimental to the public interest:
Provided that before removing a Director under this sub-section, he shall be given a
reasonable opportunity to show cause why he should not be removed.
(2) A non-official Director of the Board removed under clause (a) of sub-section (1),
shall be disqualified for reappointment as a Director of the Board for a period of three years
from the date of his removal unless otherwise ordered by the Government.
(3) A non official Director of the Board removed under clause (b) of sub-section (1)
shall not be eligible for reappointment until he is declared by an order of the Government to
be no longer ineligible.
9. Appointment of officers and staff. —(1) The Government may appoint a Chief
Executive Officer and such number of other officers and staff as they consider necessary to
assist the Board in the discharge of its functions and duties under this Act.
(2) Subject to the provisions of sub-section (3), the method of appointment, salary
and allowances, discipline and the other conditions of service of the Chief Executive Officer
and the other officers and staff appointed under sub-section (1) shall be such as may be
prescribed.
(3) In the case of posts in the service under the Board to which appointment is made
by direct recruitment,-
(a) fifty per cent shall be reserved for appointment from candidates belonging to
the families of coir workers and self employed persons; and
(b) fifty per cent shall be filled in accordance with the procedure laid down in the
Kerala State and Subordinate Service rules, 1958.
29[(4) The Government may, in such manner as may be prescribed, delegate such of
their powers under sub-section (1) to the Board.]
10. Power of the Board to borrow. — The Board may, from time to time, with the
previous approval of the Government and subject to such terms and conditions as may be
specified by the Government, borrow money for the purposes of the scheme.
11. Determination of amount due. — (1) The Chief Executive Officer or any other
officer authorised by the Board in this behalf, may, after making such enquiry as may be
necessary and after giving every person liable to pay contribution under section 4, an
opportunity to be heard, by order determine the amount due from every employer or dealer or
producer of coir products 30[or exporter] under the provisions of this Act or the scheme.
(2) The officer conducting the enquiry under sub-section (1), shall, for the purposes
of such enquiry, have the same powers as are vested in a civil court while trying a suit under
the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following
matters, namely:—
(a) enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
29 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
30 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of witnesses.
(3) Any enquiry under this section shall be deemed to be a judicial proceeding
within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of
1860) and for the purpose of section 196 of the said code.
(4) 31[Any person aggrieved by an order under sub-section (1) may, within thirty
days from the date of receipt of the order, prefer an appeal, in the case of an order passed by
any officer, other than the Chief Executive Officer, to the Chief Executive Officer and, in the
case of an order passed by the Chief Executive Officer, to the Board and the Chief Executive
Officer or the Board, as the case may be, shall, after making such enquiry, pass such orders
thereon, as he or it may deem fit:
Provided that no appeal shall be entertained either by the Chief Executive Officer or
the Board unless the appellant has remitted to the Fund the amount determined under sub-
section (1).]
(5) The Government may, either suo moto, or on application of the aggrieved
person, call for the records of any proceedings taken by the 32[Chief Executive Officer or the
Board] and make such enquiry and pass such orders, as they deem fit:
Provided that an application for revision under this sub-section shall be made within
thirty days from the date on which the order was communicated to the applicant:
Provided further that no order shall be passed under this sub-section without giving
the person who may be affected thereby, an opportunity to be heard.
12. Provisional assessment and collection of contribution. — 33[(1) Every employer or
dealer or producer of coir products or exporter liable to pay contribution under section 4
shall, pending determination under section 11 of the amount due from him, pay the amount
according to latest determination under the said section and in the absence of such
determination according to self assessment of contribution payable under section 4, as shown
below, namely:—
(a) contribution upto
Rs. 100 per annum
In lump on or before 30th June of every
year.
(b) contribution above Rs.100
and upto Rs.1200 per annum
In two half yearly installments before
30th June and 31st December of every
year.
(c) Contribution above Rs.1200 per annum In equal quarterly installments before
30th June, 30th September, 31st
December and 31st March every year.
31 Substituted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
32 Substituted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
33 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
Note.— The Board may at its discretion allow appropriate rebate for prompt payment or
advance payment.]
(2) The contribution for a month due from a coir worker or self-employed person
shall become payable on or before the 34[15th day] of the succeeding month.
(3) Whether the contribution is not paid on or before the due date, the Chief
Executive Officer or any officer of the Board authorised by it in this behalf, shall issue a
notice to the defaulter showing the amount of arrears, and if the amount is not paid within
fifteen days of the receipt of such notice, it may be recovered in the same manner as arrears
of public revenue due on land.
(4) The amount paid under sub-section (1) by an employer or dealer or producer of
coir products 35[or exporter] for a year shall be adjusted against the amount determined, under
section 11 for that year.
13.36 [XXX]
14. Priority of payment of contribution over other debts. — Where any employer or
dealer or producer of coir products 37[or exporter] liable to pay contributions under section 4
is adjudicated as insolvent or, in case such employer or dealer or producer of coir products
38[or exporter] is a company, an order for winding up is made, the amount due from such
employer or dealer or producer of coir products 39[or exporter] unde r this Act or the scheme
shall, where the liability therefore has accrued before the order of adjudication or winding up
is made, be deemed to be included among the debts which under section 64 of the Insolvency
Act, 1955 (2 of 1956) or under section 530 of the Companies Act, 1956 (Central Act 1 of
1956) are to be paid in priority to all other debts 40[subject to section 26E of the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002(Central Act 54 of 2002)] in the distribution of the property of the insolvent or the
assets of the company being wound up, as the case may be.
15. Employer not to reduce wages etc. — No employer or dealer or producer of coir
products shall by reason only of his liability for the payment of any contribution to the fund,
reduce whether directly or indirectly the wages of any coir worker to whom the scheme
applies or the total quantum of benefits to which the coir worker is entitled under the terms of
his employment express or implied.
34 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
35 Inserted by Act 9 of 1998 ( w.e.f. 30th September, 1997).
36 Omitted by Act 9 of 2025 (w.e.f. 30th October, 2025).
37 Inserted by Act 9 of 1998 (w.e.f. 30th September, 1997).
38 Ibid.
39 Ibid.
40 Inserted by Act 9 of 2025 (w.e.f. 30th October, 2025).
16. Directors of Board etc., to be public servants .— Every Director of the Board, the
Chief Executive Officer and other officers and members of the staff of the Board appointed
under sub- section (1) of section 9 shall be deemed to be a public servant within the meaning
of section 21 of the Indian Penal Code (Central Act 45 of 1860).
17. Penalty.— (1) Whoever, for the purpose of avoiding any payment to be made by
himself under this Act or under the scheme or of enabling any other person to avoid such
payment knowingly makes or causes to be made any false statement or false representation,
41[shall be liable to penalty of double the amount due by him under this Act.]
(2) Whoever contravenes or makes default in complying with any of the provisions
of this Act or of the scheme shall, if no other penalty is elsewhere provided by or under this
Act for such contravention or non-compliance, 42[be liable to penalty of twenty five thousand
rupees.]
(3) 43[XXX]
(4) 44[XXX]
45[17A. Opportunity before imposing penalty.— Notwithstanding anything contained in
this Act, for imposing penalty under section 17, an officer equivalent to the rank of the Coir
Project Officer in the Industries/Coir Department may be designated by the Government, by
notification in the Gazette, who shall before taking steps to impose penalty, give an
opportunity to the person concerned, to comply with the aforesaid relevant provisions by
written direction laying down a time period not exceeding ninety days for such compliance
and if the person complies with the direction within the said period, then, no such
proceedings shall be initiated against him.
17B. Punishment for non-payment of penalty.— (1) Whoever fails to pay the penalty
imposed under section 17 of this Act, within a period of ninety days from the date of receipt
of the copy of the order, shall be punishable with imprisonment for a term which may extend
to six months and with a fine of double the amount imposed as penalty.
(2) No Court inferior to that of a Judicial Magistrate of the First Class shall try any
offence punishable under sub-section (1).
(3) No Court shall take cognizance of any offence punishable under sub-section (1)
except on a report in writing of the facts constituting such offence made with previous
sanction of the officer authorized to impose the fine.
41 Substituted by Act 9 of 2025 (w.e.f. 30th October, 2025).
42 Substituted by Act 9 of 2025 (w.e.f.29th October, 2025).
43 Omitted by Act 9 of 2025 (w.e.f. 30th October, 2025).
44 Omitted by Act 9 of 2025 (w.e.f. 30th October, 2025).
45 Inserted by Act 9 of 2025 (w.e.f. 30th October, 2025).
17C. Power of Officers to impose penalty. — (1) For the purpose of imposing penalty
under section 17 of this Act, an officer as designated by the Government under section 17 A
of this Act, shall impose the same as provided under this Act, after holding an enquiry in the
manner as may be prescribed.
(2) While holding enquiry under sub-section (1), the officer shall have the power to
summon and enforce attendance of any person acquainted with the facts and circumstances of
the case to give evidence or to produce any document, which in the opinion of the officer,
may be useful or relevant to the subject matter of the enquiry and if on such enquiry he is
satisfied that the person has committed the offence, he shall impose such penalty as provided
under this Act.
(3) Any person aggrieved by an order made by the officer under sub-section (2) may
prefer an appeal in such form and in such manner with such fee, as may be prescribed, before
the Appellate Authority within thirty days from the date on which such order is
communicated to him:
Provided that the Appellate Authority may entertain the appeal after the expiry of the
said period of thirty days, if such authority is satisfied that the appellant was prevented by
sufficient cause from filing the appeal in time.
(4) The Appellate Authority may, after giving the parties to the appeal an
opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting
aside the order appealed against within a period of sixty days from the date of receipt of the
appeal.
(5) The amount of penalty received shall be credited to the Consolidated Fund of
the State.
17D. Compounding of Offences.—(1) The offences under section 17B of this Act, may
be compounded, either before or after institution of prosecution by an officer equivalent to
the rank of Joint Director in the Industries/Coir Department, appointed by the Government by
notification in the Gazette in this behalf, on an application made to such officer by the person
alleged of the offence, on payment of seventy five per cent of the amount of fine provided
under the said section.
(2) Every application for compounding the offences shall be made in such form and
in such manners as may be prescribed.
(3) Where compounding of an offence is made before the institution of prosecution,
no prosecution shall be instituted with respect to that offence against whom the offence is so
compounded.
(4) Where the compounding of an offence is made after institution of the
prosecution, such compounding shall be made with the permission of the court and after such
compounding the accused shall be acquitted.
(5) The amount received on compounding of the offences shall be credited to the
Consolidated Fund of the State.
17E. Mode of Recovery of money due from any person .— Any amount due from any
person under this Act or rules or scheme made thereunder may be recovered with interest in
the same manner as arrears of public revenue due on land as per the provisions of the Kerala
Revenue Recovery Act, 1968 (15 of 1968), for the time being in force.]
18. Offences by Companies.— (1) Where an offence under this Act has been committed
by a company, every person who at the time the offence was committed was in charge of, and
was responsible to, the company for the conduct of the business of the company as well as
the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable
to any punishment, if he proves that the offence was committed without his knowledge or
that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under
this Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to, any neglect on the part of
any officer of the company, such officer of the company shall be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
Explanation.— For the purpose of this section, —
(a) “company” means any body corporate and includes a firm, co-operative society
or other association of individuals;
(b) “officer of the company” means the Managing Director, Director, Managing
Agent, Secretary, Treasurer or Manager of the company and includes the office bearers of a
firm, co-operative society or other association of individuals.
19. Power to recover damages. — Where any person makes default in the payment of
any contribution to the fund under this Act or the scheme, the Board may recover from him
damages, not exceeding twenty-five per cent of the amount of arrear as they may think fit to
impose.
20. Protection for acts done in good faith. — No suit or other legal proceeding shall lie
against any Director of the Board or any other person in respect of anything which is in good
faith done or intended to be done under this Act or under the scheme.
21. Directions by Government.— (1) The Government may, after consultation with the
Board, give to the Board general directions to be followed by the Board.
(2) In the exercise of the powers and performance of its duties under this Act, the
Board shall not depart from any general directions issued under sub-section (1) except with
the previous permission of the Government.
22. Power to order inquiry. — (1) The Government may, at any time, appoint any
person to inquire into the working of the Board and to submit a report to the Government.
(2) The Board shall give the person so appointed all facilities for the proper conduct
of the inquiry and furnish to him such documents, accounts and information in the possession
of the Board as he may require.
23. Power to supersede the Board.— (1) If, on consideration of the report under section
22 or otherwise, the Government are of opinion that the Board has persistently made default
in the performance of the duties imposed on it by or under the provisions of this Act or the
scheme or has exceeded or abused its powers, the Government may, by notification in the
Gazette, supersede the Board for such period not exceeding six months as may be specified in
the notification:
Provided that before issuing a notification under this sub-section, the Government
shall give a reasonable opportunity to the Board to show cause why it should not be
superseded and shall consider the explanations and objections, if any, of the Board.
(2) Upon the publication of a notification under sub-section (1), —
(a) all the Directors of the Board shall, as from the date of such publication,
vacate their offices as such Directors ;
(b) all the powers and duties which may be exercised or performed by the Board
shall, during the period of supersession be exercised or performed by such officer or officers
as may be specified in the notification ;
(c) all funds and other properties vested in the Board shall, during the period of
supersession, vest in the Government.
(3) On the expiration of the period of supersession specified in the notification
issued under sub-section (1), the Government shall reconstitute the Board in the manner
provided in section 6.
24. Audit of Accounts of the Board and remuneration of auditors. — (1) The
Government shall appoint auditors to audit the accounts of the Board.
(2) The Board shall pay to the said auditors such remuneration as the Government
may direct.
(3) The accounts of the Board shall be examined and audited once in every year by
such auditors.
25. Annual report and audited statement of accounts. — (1) The Annual report of the
Board shall be prepared under the direction of the Board and after approval by the Board, a
copy of the report shall be submitted to Government before 46[the end of December] every
year.
(2) The Government shall, as soon as the annual report is received, cause the same
together with the audited statement of accounts to be laid on the Table of the Legislative
Assembly.
26. Bar of jurisdiction of civil courts. — No civil court shall have jurisdiction to settle,
decide or deal with any question or to determine any matter which is by or under this Act or
the scheme required to be settled, decided or dealt with or to be determined 47[by the
Government or any officer authorised by the Government] or the Board or the Director of
Coir Development or any officer authorised by the Director of Coir Development or the
Chief Executive Officer or any officer authorised by the Board.
27. Special provisions for transfer of accumulation from welfare funds established by
any Acts or agreement. — Notwithstanding anything contained in any other law for the time
being in force, on the date of publication of this Act in the Gazette, the sums standing to the
credit of a member in any welfare fund established either by any law or agreement shall stand
transferred to and credited to the fund established under this Act and the liability of such
member to pay contribution to such welfare funds shall cease from such date.
28. Removal of difficulties.— (1) If any difficulty arises in giving effect to the
provisions of the Act, the Government may, as occasion may require, by order, do anything
not inconsistent with this Act or the rules made thereunder, which appears to them necessary
for the purpose of removing the difficulty.
(2) Every order made under sub-section (1) shall be laid before the State Legislature.
29. Power to make rules. — (1) The Government may, by notification in the Gazette,
make rules either prospectively or retrospectively for the purpose of carrying into effect the
provisions of this Act.
(2) 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 fourteen days
which may be comprised in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately following, the
Legislative 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 may be; so however that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule.
46 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
47 Substituted by Act 9 of 1998 (w.e.f. 30th September, 1997).
[48ANNEXURE
CONTRIBUTION PAYABLE TO THE FUND BY EMPLOYERS,
PRODUCERS OF COIR PRODUCTS AND DEALERS
[See section 4 (2)]
Sl.
No.
Category Rate of
contribution
(1) (2)
1. Employers engaged in production of yarn using spinning
ratts:
(a) traditional Ratt rupees thirty per ratt installed or used
(b) motorised Ratt rupees twenty-five per ratt installed or
used
2. Persons engaged in the extraction or production of fibre
using defibering machinery from:
(a) retted husk rupees one hundred and fifty
(b) unretted husk rupees five hundred
3. Persons engaged only in cleaning or curling of fibre using
power:
(a) for willowing or cleaning unit rupees fifty per unit
(b) curling unit rupees two hundred per unit
4. Persons engaged in the production of coirmats, mattings
and carpets using:
(a) handlooms producing mats rupees sixty per loom
(b) handlooms capable of producing mattings of width
upto and including Three metres
rupees two hundred and forty per loom
(c) hand-loomsExcerpt shown. Open the full act in Lexace.