LexThe KERALA GRANDHASALA SANGHAM (TAKING OVER OF MANAGEMENT) ACT, 1977
Kerala · state statute
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THE KERALA GRANDHASALA SANGHAM (TAKING OVER
OF MANAGEMENT) ACT, 1977
(Act 19 of 1977)
CONTENTS
Preamble.
Sections:
1. Short title and commencement.
2. Definitions.
3. Board to take over management of the undertaking of the
Grandhasala Sangham.
4. Effect of notified order issued under section 3.
5. Contracts in bad faith, etc., may be cancelled or varied.
6. No right to compensation for termination of office.
7. Applicability of Kerala Non-trading Companies Act and
Articles of Association.
8. Conditions of service, etc. of existing employees.
9. Power of Government to cancel order notified under section 3.
10. Duty to deliver possession of property and documents relating
thereto.
11. Duty to furnish particulars.
12. Powers of Inspection.
13. Penalty for false statement.
14. Limitation on prosecution.
15. Protection of action taken under the Act.
16. Over-riding effect of Act.
17. Payment of remuneration and expenses out of the funds of
Grandhasala Sangham.
18. Power of Government to give directions.
19. Power to make rules.
20. Power to remove difficulties.
21. Repeal and saving.
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ACT 19 OF 1977
THE KERALA GRANDHASALA SANGHAM (TAKING OVER
OF MANAGEMENT) ACT, 1977*
An Act to provide for the taking over in the public interest of the management of the
undertaking of the Kerala Grandhasala Sangham, with a view to ensuring the
proper working of that Sangham and for matters connected therewith or incidental
thereto.
Preamble.—WHEREAS in the interest of the libraries in the State and
in the public interest it is necessary to provide for the taking over of the management of
the undertaking of the Kerala Grandhasala Sangham by the State for a limited period
with a view to ensuring the proper working of that Sangham and for matters connected
therewith or incidental thereto;
BE it enacted in the Twenty-eighth Year of the Republic of India as
follows:—
CHAPTER I
PRELIMINARY
1. Short title and commencement.—(1) This Act may be called the Kerala
Grandhasala Sangham (Taking over of Management) Act, 1977.
(2) It shall be deemed to have come into force on the 16th day of March,
1977.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) "articles of association" means the articles of association of the
Grandhasala Sangham;
(b) "district committee" means a district committee constituted under article
24(a) of the articles of association;
(c) "executive committee" means the executive committee of the Grandhasala
Sangam referred to in article 24 of the articles of association;
(d) "governing council" means the governing council of the Grandhasala
Sangham constituted under article 24 of the articles of association;
(e) "Grandhasala Sangham" means the Kerala Grandhasala Sangham
registered under the Travancore Companies Act, 1114 (IX of 1114);
(f) "notified order" means an order notified in the Gazette;
* Received the assent of the President on the 12 th day of August, 1977 and published in the Kerala Gazette
Extraordinary No. 476 dated 12th August, 1977.
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(g) "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 association;
(i) “undertaking” includes all assets, rights, leaseholds, powers, authorities
and privileges and all property, movable and immovable, including lands, buildings,
stores, equipments, automobiles and other vehicles, cash balances, reserve fund,
investments and book debts and all other rights and interest arising out of such property
as were immediately before the date of the notified order under sub-section (1) of section
3, in the ownership, possession, power or control of Grandhasala Sangham, and all books
of account, registers and all other documents of whatever nature relating thereto.
CHAPTER II
TAKING OVER OF MANAGEMENT OF THE UNDERTAKING
OF GRANDHASALA SANGHAM
3. Board to take over management of the undertaking of the Grandhasala
Sangham.—(1) The Governmnent may, by notified order, appoint a body of persons
(hereinafter referred to as the 'Board of Control') to take over the management of the
undertaking.
(2) The Board of Control shall consist of a Chairman and such number of
other members not execeding ten as the Government may think fit, to be appointed by
the Government.
(3) The Government may, either in the notified order issued under sub-section
(1) or in a subsequent order, specify 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 of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies among, the members
of the Board of Control shall be such as may be prescribed.
(5) The salaries, allowances and other remuneration and the conditions of
service of the members of the Board of Control shall be such as may be determined by
the Government.
(6) Any notified order issued under sub-section (1) shall remain in force for
such period not exceeding two years as may be specified in the order:
Provided that if the Government are of opinion that in order to secure the
proper management of the undertaking it is expedient that any such notified order should
continue in force after the expiry of the period specified in that order, they may, from
time to time, by notification in the Gazette, extend such period by not more than six
months at a time, but no such notified order shall in any case remain in force for more
than 1[eleven years].
1 Substituted by Act 15 of 1986 (w.e.f. 01.04.1982).
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4. Effect of notified order issued under section 3.— (1) On the issue of a notified
order under section 3 appointing a Board of Control 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 Sectetary, Joint Secretaries
and Treasurer and other members of the governing council, members of the executive
committee and members of the district committees, and taluk union committees shall 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 in force, to exercise all the powers of the
governing council, executive committee, districtive committees and taluk union
committees;
(c) as from the date of the notified order, the undertaking of the
Grandhasala Sangham shall be deemed to be in the custody of the Board of Control who
shall, as soon as may be after such date, take such steps as may be necessary to take into
its possession or under its control all properties, assets and effects and all actionable
claims comprised in the undertaking.
(2) Subject to the other provisions contained in 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 affairs of the Grandhasala
Sangham and shall exercise such other powers and have such other duties as may be
prescribed.
5. Contracts in bad faith, etc., may be cancelled or varied.— Without prejudice to
the provisions contained in section 4, the Board of Control may, with the previous
approval of the Government, make an application to any court having jurisdiction in this
behalf for the purpose of cancelling or varying any contract or agreement entered into at
any time before the issue of the notified order under sub-section (1) of section 3, between
the Grandhasala Sangham and any other person, and the court may, if satisfied after due
enquiry that such contract or agreement had been entered into in bad faith and is
detrimental to the interest of the Grandhasala Sangham, make 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 agreement shall cease to have
effect or, as the case may be, have effect subject to such variations.
6. No right to compensation for termination of office.— Notwithstanding anything
contained in any law for the time being in force, no person who ceases to hold any office
by reason of the provisions contained in clause (a) of sub-section (1) of section 4 shall be
entitled to any compensation for the loss of office:
Provided that nothing contained in this section shall affect the right of any such
person to recover from the Grandhasala Sangham moneys recoverable otherwise than by
way of such compensation.
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7. Applicability of Kerala Non-trading Companies Act and Articles of
Association.—(1) Notwithstanding anything contained in the Kerala Non-Trading
Companies Act, 1961 (42 of 196l), the Articles of Association of the Grandhasala
Sangham shall stand suspended for the period during which the notified order under sub-
section (1) of section 3 is in force.
(2) Subject to the provisions contained in sub-section (1) and to the
other provisions contained in this Act and subject to such exception,
restrictions and limitations, if any, as the Government may, by notification in the
Gazette, specify in this behalf, the Kerala Non-Trading Companies Act, 1961 (42 of
1961), shall continue to apply to the Grandhasala Sangham in the same manner as it
applied thereto before the issue of the notified order under sub-section (1) of section 3.
8. Conditions of service, etc. of existing employees.— (1) Every officer or other
employee employed, immediately before the date of the notified order under sub-section
(l) of section 3, in connection with the affairs of the undertaking shall, during the period
in which such notified order is in force, hold his office by the same tenure, at the same
remuneration and upon the same terms and conditions and with the same rights and
privileges as to gratuity and other matters as he would have held under the Grandhasala
Sangham if such notified order had not been issued.
(2) Where the Grandhasala Sangham has established a provident,
superannuation, welfare or any other fund for the benefit of its officers and other
employees, such fund shall, with effect on and from the date of the notified order under
sub-section (1) of section 3, stand transferred to, and vested in, the Board of Control.
9. Power of Government to cancel order notified under section 3 .—If at any time
it appears to the Government on the application of any member of the Grandhasala
Sangham or otherwise that the purpose of the notified order under sub-section (1) of
section 3 has been fulfilled or that for any other reason it is not necessary that the order
should remain in force, the Government may, by notified order, cancel such order.
CHAPTER III
MISCELLANEOUS
10. Duty to deliver possession of property and documents relating there to.— (1)
As soon as may be after the issue of the notified order under sub-section (1) of section 3,
every person having possession, custody or control of any property of the Grandhasala
Sangham shall deliver the property to the Board of Control or to any such person as may
be authorised by the Board in this belhalf.
(2) Any person who on the commencement of this Act, has in his possession
or under his control any books, documents or other papers ralating to the undertaking,
including any letters or other communications between him and the Grandhasala
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 papers (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.
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(3) The Government may take all necessary steps for securing possession of
all properties of the Grandhasala Sangham.
11. Duty to furnish particulars.—The Grandhasala Sangham shall, within ten days
from the date of the notified order under sub-section (l) of section 3 or within such
further period as the Government may allow in 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 liabilities and obligations of the Sangham subsisting at such
commencement and also of all agreements entered into by the Sangham and in force at
such commencement.
12. Powers of inspection.—(1) For the purpose of ascertaining whether any
property is the property of the Grandhasala Sangham or for any other purpose mentioned
in this Act or the rules made thereunder, any person authorised by the Government in this
behalf shall have the right-
(a) to enter and inspect any premises;
(b) to require any person having the possession, custody or control of any
register or record of the Grandhasala Sangham to produce such register or record.
(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 documents or to furnish to him such information as he may
reasonably think necessary; and
(d) to examine any person having the control of, or employed in
connection with, the Grandhasala Sangham and to require him to make any statement
touching the affairs of the Sangham.
(2) Any person authorised by the Government under sub-section (1) sball be
deemed to be a public servant within the meaning of section 21 of the Indian Penal Code
(Central Act 45 of 1860).
13. Penalty for false statement.—(1) If any person,—
(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 furnishes any
information which is false in any material 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
submit, he shall be punishable with imprisonment for a term which may extend to two
years, or with fine which may extend to two thousand rupees, or with both.
(2)Any person who—
(a) having in his possession custody or control any property forming part
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of the assets of the Grandhasala Sangham, wrongfully withholds such property from the
Board of Control; or
(b) wrongfully obtains possession of any property forming part of the
assets of the Grandhasala Sangham; or
(c) wilfully withholds or fails to produce to any person authorised under
this Act, any register, record or other document which may be in his possession, custody
or control; or
(d) fails without any reasonable cause to submit any accounts, books or
other documents when required to do so,
shall be punishable with imprisonment for a term which may extend to two years, or with
fîne which may extend to two thousand rupees, or with both.
14. Limitation on prosecution.—No court shall take cognizance of an
offence punishable under this Act except with the previous sanction of the Government
or of an officer authorised by the Government in this behalf.
15. Protection of action taken under the Act.— No suit, prosecution or other legal
proceedings shall lie against the Government or the Board of Control or any member
thereof or any other person for anything which is in good faith done or intended to be
done under this Act.
16. Over-riding effect of Act.— The provisions of this Act or any rule or order
made thereundcr shall have effect notwithstanding anything inconsistent therewith
contained in any law other than this Act or any instrument having effect by virtue of' any
law other than this Act.
17. Payment of remuneration and expenses out of the funds of Grandhasala
Sangham.— All salaries, allowances and other remuneration paid to the Chairman and
other members of the Board of Control or any other person who may be appointed or
employed in connection with the affairs of the management of the Grandhasala Sangham
and all other expenses duly incurred in connection with such management shall be paid
out of the funds of the Grandhasala Sangham.
18. Power of Government to give directions.— Notwithstanding anything
contained in the foregoing provisions of this Act, the Government may give such
directions to the Board of Control, as the Government may deem fit, for the proper
management of the undertaking of the Grandhasala Sangham and the Board of Control
shall comply with such directions.
19. Power to make rules.–(1) The Government may, by notification in the
Gazette, make rules to carry out the purposes 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
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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.
20. Power to remove difficulties.— If any difficulty arises in giving effect to the
provisions of this Act, the Government may, by order, as occasion requires, do anything
not inconsistent with the provisions of this Act which appears to them to be necessary for
the purpose of removing the difficulty:
Provided that no such order shall be made after the expiry of two years
from the commencement of this Act.
21. Repeal and saving .-(1) The Kerala Grandhasala Sangham (Taking Over of
Management) Ordinance, 1977 (11 of 1977), is hereby repealed.
(2) Notwithstanding such repeal, anything done or deemed to have been done
or any action taken or deemed to have been taken under the said Ordinance shall be
deemed to have been done or taken under this Act.
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