The Sikkim Khadi and Village Industries Board Act, 1996

CKNHHHWWENT
No. 4/LD/96
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok Tuesday, 9th July, 1996
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK.
GAZETTE
No. 84
‘Dated the 4th July, 1996.
NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received the assent of
the Governor on the 29th day of June 1996 is here y published for general Information:-
THE SIKKIM KHADI AND VILLAGE DUSTRIES BOARD
Short. title,
extent and
commencement.
Definitions.
ACT, 1996
'
(ACT- NO. .4. OF 1996 )
AN
ACT
to consolidate and amend the law relating to the Sikkim Khadi and Villa've
Industries Board and to proud-a for uniformity among the Boarcls in di 9-
rent States of the country and to ensure better (To-ordination and imple—
mentatiou of the various programmes being undertaken by them.
BE 11; e.-actc.d by the ngislatiVs‘L Assembly of Sikkim in the: Forty-
seveoth year of the Republic of India as follows :~
CHAPTER
—
1
PRELIMINARY
1. (I) This Act may be called the Sixkim Khad and Vlllage Indus-
tries Board Act, 1996
(2) It exteods to the whole of Sikkim.
(3) It shall come into force on such date as the State Govern-
ment may, by notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires ;-
(a) “Board” means the Sikkim Khadi and Village Inclustues
Board established under section 3 of the Bill";
(h) “Chairman” means Chairman of the Board ;
(a) “Commissxon” means the Khadi and Village Industries
Commksion established under section of the Khadi and
Village Industfies Commission Act, 1956 ;
(d) "fixed. capital investment” means the Fixed Capital In-
vestment as defined in sub-section (cc) of section 2 of the.
Khndi and Village Industries Commission Act, 1956 ;
Q) "Goveniinent” means the Govarnment of Sikkim ;
(f) “khadi” means any cloth woven on handloonl in India
from cozton, silk or woolen yam hand spun in India. or From
a mixture of any two or all of such yarns certified by the
Commissmn as Khadi and shall in-‘lude readymade garments
made out of sucn cloth ;
(g) “member” means Member of the Board.
(h) “notification” moans mo. notification published in the
Official Gazette ;
(i) “prescribed” means prescribed by rules made under this
Act ;
(j) “reéluations” means regulations made by the Board under
this Act ;
398
61 of 1956
61 of 1956.

Embiishmem 3
.
and incarpa»
ratio!) :3," the
Baarrl'.
Compositian
of the Board.
Powers and 5.
fuiu‘tiflns {7}"
dz: Exzczmm
Ofiicer
V
Power: Burl 6,
functions .3f
the Acct-um:
ofism.
Disquah’ ca- 7.
tianfbr mam—
lmrship 9f the
Board.
(k) ”rural area” means the area as defined in sub-section (4?)
of fiction 2 of (2hr Khmli aria Village Industries Commission
Act. 191;6 ;
'
(1) "Village industry” means any industry as defined in sub—
section (11) of section 2 of the Kltadi and Village Industries
Commission fiat, [955.
CHAPTER
—
II
THE KLHAUI AND VILLAGE INDUSTRIES BOARD
(I) VVitlI -_f‘l&:ct from such date as the Guvurnmcnt may, by
notification, fix in this Behalf, there shall he established ‘al
Ban-.1 to 1).; called the Sikkim Knarli :uul Villagt In&ustries
Board.
(2) Th: Board shall be a body corporate having Perpetual succc»
ssion and a col-union final and shall by its carpal-an mum. sue
and. be sued.
'lhe B';Bl‘d shall consist of the following unenllx rs appointevl by
the Government, namely
:-
‘
(2“ Chaiunm
(b) Maxinxuan four non-aficial members having sphcialisetl
knowledge and exlmricme with Klladi and Village Indus—
tries Mambo] ,
Kc) Ihree representatives ml" the Dcpartments or] hidustrics,
Finance ant‘ Planning and Des elopment not below the. rank
0F joim. Secretaries .
.Member.
(6) Representative of the K'hadi and Villagé
lndustrich Commission . .
Member,
(9) Accounts Officer al‘ the Sikkim Khadi and Village Indus-
trim Board who slmll also he the incl-large of accounts of
the Board . .Member,
(I) Executive Officer of the Board Member Secretary.
(i) The Execu Officer appomted under clause (0 of section
4. shall exeiuse powers of general superintendcnce over the
anairs of flu: Board and its rlay—to»tlay management under
tlle (Iii-$0110“ and control of the Chairman.
(1'; The lz‘xt‘rut'h'r: Officer shall 13:. responsible for the furnish—
‘ug of all returns, reports and stalexnents requi:ed lo be
l'ur.xish.cl to the Guvernrnent and the Commission under
section 31.
{2) It shall be the (ivty of the Executixe OHicer to place before
lllF Board for its caustic-ration and decision any matter of
financial lnlportancu which the Accounts Officer suggests
to him in writing that such matter be Placed before the
Buard.
The Accuums Officer appointed undu- clause (a) ot' section 4. shall
he imchargc of all financial matters of the Board including its Budget,
accounts and audit, and it shall be the duty of the Acdouuts Office;-
to bling to the notice of thc Board through thc Executive Officer
any matter of financial impart, which in his opinion, rcquires con-
sideration and decismn By the Beast!
A person. shall be cllsquallfieil for being appnimed as, and for
being, a mmber of the Board
‘
(a) if he is, or is round to be a lunatic or a parser: of unsound
mind ; or
(b) if he has bven adjudged insolvent ; or
(c) if he has been convicted of an ofl’euce mvolving moral
turpitude ; or
399
6'. gf195
61 EleS

Rama m? 43’ 8.
Chairman,
Member , etc,
firm: the
Emmi
Resignation 9f 9 .
0197“ by
Member .
Vacuuclas v n .
ctr. not to
Inmliduta
ac: and pro-
tegdingx of
tin Baud.
Temporaifp i l .
amaan‘un
{if persons
with Board
fin— yarmumr
purpose.
flfscting of la.
the £0 1rd.
(4)
(B)
The Government may, by notification,
if he has any financial interest in any subsisting contract mada
With 0 in any work being done by tht: Board, excePt
as a
shareholder (other than a Director) in a
company as :{efined
in section 3 of the Companies Act, 19:6
‘
Provided that where he is a shareholder, 11. shall
disclose to the Government, the nature andextent of shares
held by him in such a company
~
or
if he has any financial interest in any business Llnd-Jtnking
dealing with or any other village industry as may be sperii‘fied.
'
remove [turn the office
any member of the Board, who
-
(a)
(b)
(C)
is or has become subject to any of the disqelalifications mam
tinned in section 7 ; or
in Lhe opinion of the Govurument, has failnil or is tumble:
to carry out his duties ; or
absents himself from three consecutive Ineetings of tilt:
Board without the leave of the Board :
Provided |l1n1t before issuing any such notificaaian
the Government shall give an oppm‘tunifiy to the member
concerned to show cause against such removal.
Any member may resign. his ufiice by giving notice in wri-
ting to the Gnvemmen‘ andJ or. such resignation being noti—
fied in the Official Gazette by the Government, he shall be
deemed to have vacated his office.
In the event of any vacancy in the silica cf 9 member of the
Board by reason of death, resignafin12, h‘mm—al 0.“ other-
wise, such vacancy may be fillgd in by the Covernnianl: and
die member thus appointed in such vacancy shall hold oFfivc
For the unexpired term of the member whose place heiills.
No m or
pn‘uceudings or chi; Board shaEl be invalid mercly by reason
of the existence of any vacancy amongst its members of any defer:
in the consriuuion thereoF.
(I)
('3')
(3)
(I)
The Board may 3530
‘
\tc: “Pith itself in such manner md for
such purposes
as
may be determined by regulations madn;
under this Act, an pelson whose advice or assistance it
may desire in compl ing with anyol‘ the provisions at this
Act.
A Ps‘isun asiuciatcd with it by thc Board under sub-section
(I) for any gurpnse shall have the right 1'0 take part in the
discussions of the Board relevant to that purpose, but shall
not: have ”15 right to vets and shall not be a member For any
Other purpose.
The Governmml and the Commission may depute one. or
mozeuf Their 083cm to attend any “letting ol’ the Board
and to take part in the: rliscussuions of the Bam'd, but such
officer or officers shall not have. the right to votei
The Board shall. meet at such times and places and shall, sub-
jeét to the provisions of sub-sections (2) to (q), observe
such rules or procedures in regard, to the transaction of
business at its meccings, including the quorum at meetings,
as may be provided by regulations made by the Board under
the Act .-
400
I gfi956

Term 9f
affine and
conditions qf
servicfl 9f lbs
Chairman and
other rem-
hers.
Appointment
and condi-
tion: 9f scr-
vicr: :gf afi?
nus and ether
emplcyces 9f
the Board.
Standing F:—
nuncfi Commi—
tree.
Appointment
vf otiz er Cam-
mittces.
Power: 9f the
Board to
spam].
91‘!-
16.
17.
Provided that thu Board
even-y two months.
shall nit-ct atleasl‘ once in
(1) The Chairman or in his absence, any member chosen by the
members present from amongst themselves, shall preside
over the meetings of the. Boar .
’
(3) All questions at a meeting of the Boarri shall be decided by
a majority of the votes of the makers present and voting and
in the ease of an
equality of votes, the Chairman of th..; Inca-
ting shali have a second or a casting vote.
(4) The proceedings of the meeting or the Bead shall be for-
“mrdcd to the Governmant and to Commission “within fil-
teen days of ever-y meeting.
(I) Every member of the Board shall Ewid office for a term of
five years :
Provided that the Chairman shall notwithstanding
thn expiration of his tax-n1 continue to hold office. until his
successor enters upon his ufficu.
(2} The terms and conditions 0! service of the Chain-nun, Exc-
cutlve Officer, Ascounts Officer and other members shall in:
such as may be prescribed.
(1) Subject to sud) rules as may be nsade by the Governnimnt in
this behalf, th ; Board may, after creation of the past with the
prior approval of the: Government, appoint such other offi-
cers and employees as it unnslders necessary For the efi‘lcient
perforumuce OF its function.
(a) The scl‘VV‘e comli ‘cns of the officers and employees of the
Egan! shall be. 30‘ Red by thr- State Government Servlcr-
Rules (LS anmmlrzrl From tilnc to time.
-
The Boarr." sliail he the appointing authority in I'L'SPL'E‘: of all
ri‘n: officers and the canploynes of the Boara.
-(l) “116m shail be cousfitutuc‘; From amongst the members of
the Board excluding te Chainnan, :1
Standing Finance Comp
nutlee to axerfiisc such pox-vars and perfnm such functions
.veiating to finance of the Board as may be
delegated by the
Board in Vhe prescriberl Dunner. 'Ihe procee .ings of the
Ineeting of the Colnnfittce shall be {bi-wander! to the Govern-
ment within fifteen clays of every tneeting.
The Board may also delegate necessary financial powers to
its officers for expeditions disposal of won: subject to such
canditions as it deems fir.
."\ a
Subject [1: any rules made in this behalf, the Board may, from time
to time, appomt one or more committees for th: purpose of eflicient
disrharge of its funntions and, in particular for the purpose of secu-
ring that the functions shall be dischargefl according to the circums-
tances and requirements of khatli or any particular village industry.
Such committees may be appointed For any specific areas.
Subject to the prnvisions of section 22 anrl subject to the condition
that the expenditure Ls covered by the budget sanctioned by the
Government, the Board shall have power to spend. such sum as
it thinks fit for the Put-Pose authorised by this Act.
40]

Functions of
the Board .
Para-cf
Gorernmmt
to giro «ii-rec»
tions.
('0
U)
(‘3)
(cl
((1)
(6)
(F)
(g)
(h)
(i)
(l)
(k)
(l)
'
(1“)
CHAPTER
-
Ill
FUNCTIONS OF THE BfJARD
Subject to the provisions of this Act, the functions of the
Board shall enerally be to plan, promote, organisa. and assist
in the estabishznent and development of Khadi and Village
Industries in the rural areas in coordination with other agen—
cies engaged in rural development wherever necessary.
In particular and without prejudice to the enerality of the
foregoing powers, the Board may take suc other steps as
it may think fit
-
to plan and organise training of persons employed or desir-
ous of seeking employment in khadi and village industries ;
to build up reserves of raw nnaterials and implements anal
supply them to persons or institutions engaged or likely to
he engaged in production of hand spun yarn. or khadi and
village industries ;
to encoura e and assist in creation of common service Faci-
lities for tie processing of raw materials or semi-finished
06.5 and for otherwise Facilitating production and market—
ing of kharli or products of village industries ;
to promote. the sale and marketing of kliatli or products
of village industries or handicrafts and for this purpose, forge
links with established marketing agencies wherever nemes—
sary and feasible ;
to encourage and promote research. in technology used in
khadi and village industries including the use of non-conven-
tional energy and electric power with a View to inc-easing
productiwity, eliminating drudgery and otherwise enhan—
cing their competitive capacity and to arrange for dissemi-
nation of salient results obtained from such research ;
to zutdertake directly or through other agencies studies of
the problems of khadi or village industries ;
to provide financial assistance to institutions, cooperatives,
or per sons, as the case may be, who are engaged in the deve-
lopment and operation of khzuli or village industries and
guide them through supply of designs, prototypes and other
technical information for the purpose of producing goods
and servicrs for which there is eHective demand in the opi-
nion of the Board ;
to undertake experiments or pilot projects which in the
opinion of the Board are nescesary for the developnlent of
khadi and village industries ;
to Promote and. encourage cooperative eflorts among the
manufactures of khacli or presons engaged in village indus-
tries ;
to ensure genuineness and to set up standards to quality
and ensure that products of khadi and village industries do
conform to the said standards ;
to explore and undermine export activities ;
to establish and maintain separate organisation for the pur-
pose of carrying out all or any of the above matters ;
to carry out any other matters incidental to the abOVc.
In the discinrge of its functions under this Act, the Boas-(l shall be
bomud by such directions as may be given to it by the Govermnent‘
From time to time in conformity with.the' provisions of this Act.
402

Power of the '1 o.
Comm ission
to Hire Hire-e—
tiont.
Preparation
2 I .
anti solitair-
ties of Annual
Programme
oneII Esta biish-
men: Sefieciuie.
Sanction of. 1 E .
programme
ertabfishrnent
sefiedo It.
Budget. 1 _i,.
Sanction of 1'51.
.
Budget,
Supplementary
t 5'.
Programme
-
and supple-
mentor?
Budget,
‘Without prejudice to the provisions of section :9, the Board shall
also he lvnuml by such flirtatious as may be given to it by the Can'-
Jnission J'i-om tirno to titne in respect to? implementation of Program—
1nes assigned and finances provided by the Cmntmission.
CHAPTER
-
11-“
PREPARATION‘AND SUBMISSION OF PROGRAMME
[1) in each financial year, the Board shall, at such. time and in
such fame as may be prescribed, prepare and submit to the
Government and the Gommission
-
(a) programme oi" its work ; and
{b} a schedule of the staff aural ofi'icers already employed
and to be canployerl.
(I) The programme oF its work shall contain
n
{a} particulars of the schemes whhch the Heart? proposes
tr.“- exeeutc whether fully
or in Part and financed by
the Government, the |I'Soruttflission and other Agen-
cies ;
(h) particulars oF any work or undertaking which the
Board proposes to organise during the following year
for the purpose of carrying out its functions under
the Act and such other particulars as may he
prescribe-r1 or may he required by the Government
or the Contmission.
{I} The Governntent may, with the approval HF the Comntission,
sanction the progranune and schedule oF stall' or officers of
the Board with such modification as it easy deem fit.
ft} The pro ramroe sanctioned by the Government shall be
sent to t e Commission.
(1} The Board'shfiil, in such form and at such time as may be
prescribed, prepare each year a butlget of its estimated receipts
autl eapenfliture
on capital and revenue accounts according
to the progral‘lle and schedule sanctioned by the Govern-
ment under section as For the next financial year and shall
submit the budget to the Govemment.
{t} He sure shall be expended by or on behalf of the Board un*
less the expenditure is covered lay specific provision in the
budget sanctioned and approved by the Government and
the Contna'ission.
{1} The Goveimment may sanction the budget submitted to it
With such modifications as it deems fit.
(a) The Board shall not be competent to transfer funds sanc-
tioned For one scheme to another scheme
—
t“ a where Funds in respect or such-schemes are allotted
11:; the Commission. without the approval oF the
Commission, and
-
(h) in any other case, without the approval of the'Gnvern-
ntent.
'
The Board may submit a supplementary prograrrune anti
-
a‘ supple-
mentary budget for the sanction of the Govemment in such Form and
at. such time as the. Government may preseribe-and.the- provisions
.oFtseetions 21 to 14. shall apply muntatis—mutandis to such supple»
mentary prograuune and budget.
403

Irqmfir qf 2 5 .
Prepay.
Funds fir the 27.
Board.
Rae": Fund 28.
c5“ :1": Board.
Aypl‘ication 13f 19.
funds at:-
Subuntion 3 a .
and Ivan: w
the Board.
-
CHAPTER ——
v
FINANCE, ACCOUNTS, AUDIT AND REPORTS
'Y‘lie Governmmt may transfer to the Board buildings, land or an
other property, whether mamble or immovable on such conditions
as the Government may deem fit for the purpose of this Act.
(I)
(2)
\3)
(s)
(5)
(6)
(1)
(3)
(I)
The Board shall have two funds to he called as the develop»ment find and general and miscellaneous fund.
All such sums receivml by the Board For the purposes rela-
ting to dcvelopnrmt of kharli and village industries shall be
credited to the development fund and all other sums recrL
ved by the B0316: shall be: crezliterl to the general amil miscm
Ham-mus fund.
The smns caediced under sub-section (2?.
- -\
(.1) lo the development fund, shall be applied for the
purposes relating to development of khadi and villageindustries ;
(b) m the general and miscellaneous fund, shall be app-lied for the purposes ofrneeting the 52hr), allowances
mail other remuneration of the members} officers and
other empluyres oi the Board and other administra-
tive expenses of the Buarrl.
The Board may accept grants, subventinns, donations and
glfts and receive loans from Government or'a legal authflrity
or any body or association whether incorporated or not, or
an individual or all for any of the purposes of this Act.
All money belonging to the Funds of the Beard shall be de-
Pnsired in any nationalised bank or banks or in a Govern-
ment Treasmy or be iJ'nrester.l in such securities as may be
approved by Lhe Government from time to time.
The accounts of the Board shall be operated upon lay such
officers jointly or individually as may be authorised by the
Board from Lime :0 time.
The Board shall establish a rcscrvc Fund to which shall he
credited such funds as may be provided by Government for
HM: purpose.
'Ihe management of the reserve fund, the sums to be credi—
ted from time to time, the credit thereof ahd aPPlicatiun of
the moneys comprisecl therein, shall be determined in such
manner as may be prescribed.
The reserve fund shall be utilised fur setting ofi" irrccovexsk
ble loam and losses in direct trading activities.
All pr‘ope’rty, funk] and. other asset: of the Board shall he held
and apyliecl by it subject to the Provisions and For the Purpose of
this Act.
(I)
(=)‘_
(a)
The Government shallJ'i-om time to time, make subvenrion
and grant; to the Board for the purpose cl this Act on
such tcnns and committing: as the Goyemxuent‘ “my demar—
minc ,in each (use. -
The’establishmant expenditure of the Board. shall be the sale
'Icaponsibl'lity of the State Govemmmr.
The Board may, from time 'to time, with the previous Slum
tion of the Government and subject to the provisions of this
Act and such conditions as the: Government may decal-snipe,
; borrow any slum required for the purpose of this Act, on the
security of the Fu'nzls or any other assets for any.pu1~pope for
which such fund or assets may-lac applied. ._
- -
,
404

Accounts and 3 I .
Audit.
Annual Re- 3 1 .
port.
Other reports, 33.
statistics and
returns,
Members, Ofi-
cars and cm-
pltyrm of the
Board to be
pullic ser-
rants.
3-1--
35-
p
(4.) The Government shall stand guarantee For securing loans,
A
repayment of all the libflitios of the Board to the Khadi and
Village Industries Commission or any other agencies.
(1) The Board shall maintain proper accounts and other rele—
vant recorcls and prepare an annual statement of amounts
includin the profit and loss account and the balance sheets
in such arm as may be Prescribed.
(2) The Board shall maintain a proper system for internal audit
oi its accounts.
(3) The accounts of the Board shall be audited by the Accoun-
tam: General of Sikkim or such persons as the GOVemment
may, in consultation with the Commission, appoint from
time to time.
(4.) The accounts of’ the Board as certified by such Auditor under
sub-section (3) together with the audit report thereon shall
be Forwarded annually to the Government and to the. Com-
mission at such time as the Government may specify in this
behalf.
(5) In addition to the auclit profidecl in sub-section (3), the
Commission shall also have the right to audit and ins-
pect the accounts of the Board pertaining to the funds ad-
vanced by the Commission and the Board shall comply with
such directions as the Commission may issue in this regard.
(6) The persons flischaiging fimctions Link‘s? sub-section (3) and
(5) shall in connection with such audit, have such rights,
privileges and authority as may be prescribed and in parti-
cular such persons shall have the right to tlemand the pro--
duction of books of accounts, connected vouchers and other
documents and to inspect any of the. officers of the Board.
(I) The Board shall prepare and forward to the Government and
the Commission an annual report. within three months from
the end of the financial year givina
a
complete account of
its activities during the previous manoial year alongwith
a
copy of the ammo! statement of account together with the
audit report thereon referred to in sub—section (4.) of section
3: in such man-oer as may be prescribed.
(2) The report and the annual statement of accounts together
with the audit report received by the Government under
sub-section (1) shall be, laid before the State Legislature as
soon as may be after it is received by the Government.
The Boarrl shall at such time and in such manner, submit to the
Government or the Commission its reports, statistics and returns
38 the Government or the Com-ission tony direct from time
.to time.
CHAPTER
- VI
MISCEL—l .ANEOQS
Members, 'ofi'icers anr.‘ employees of the Board shall be deemed
whm acting or purporting to act in pursuance of any of the rovi-
sions of this Act or under the rules or regulations made thereunder
to be public servants within the mailing of section 21 of the
indian Peiul Code, 1.86:1.
No suit, Prosecution or other legal proceedings shall lie against
any member, officer or employee of the Board for anything done
in good faith or purported to he done under this Act or any rules
or regulations made thereunder.
405
4.; 9f 1860.

Idation. 1 Va 36.
Dissolution 37.
afBoaz-d.
Supersessian 3 8 .
9f the Board.
Recoveries of 39.
arrears.
Powers w 4.0 .
not to of
losses.
(1) No act of the Board or any Committee or any officer done in good
faith in pursuance of the functions of the Board shall
be domed to be invalid by reason. only of some defect subse-
quently discovered either in the constitution of the Board
or in the constitution of any Committee or in the
appointment or selection of an officer or on the ground tlmt
such officer was disqualified for his office.
(2) No act done in good faith by any person appointed under
this Act, rules and regulations shall be invalid meiely by
reason. of the fact that his appointment has been cancelled
b or in consequence of any other order passed subsequently
under this Act or any rules and rgulations made thereunder.
(3) The Board shall decide whether any act was done in good
faith in pursuance of the functions of the Road and the deci-
sion thereon shall be final.
(1) The Govermuent may, by notification, direct that the Board
shall be dissolved from the date specified in the notification
and thereupon the Board shall be deemed to be dissolved
accordingly and any committee constituted shall cease to
function.
(2) On and from the said date
-
(a) all Properties and funds, which imnlcdiately before
the said date were in the possession of the Board for
the purpose of this Act shall vest: in the Government ;
(b) all members shall. vacate office as lnembers of the
Board ; and
(c) all rights, obligations and liabilities including any
liabilities under any contract of the Board shall become
the rights, obligations and liabilities of the Govern~
meat.
(I) The Government may, by notification, supersede the Board
for such period as may be specified in the notification and
declare that the duties, powers and functions of the Board,
shall during the Period of its supersession. be discharged,
exercised and performed by such person or authority as may
be specified in the said notification.
(a) The Governmct shall before expiration of the period of
supersession, reconstitute the Board in accordance with the
provisions of section 3.
(3) The Government may take such incidental and consequen-
tial provisions as may appear to be necessary for giving effect
to the provisions of the section.
(4.) Any notification issued or order made by the Government
under this section shall not be questioned in any court.
Any suru payable to the Board under any agreement, express or
implied or otherwise, however, may be reenvered without
prejudice to any other remedy as an arrear of land revenue.
(1) The Board may, after prior consultation. with the Executive
Oficer of the Board, write 03' losses upto rupees five thou-
sand (Rs. 5,0oo/n) in individual cases falling under any or all
of the following categories, namely :-
(a) Loss of irrecovemble value of stores or of public
money due to theft, fraud or such other cause ;
(1:) Loss or irrecoverable advance other than loans ; and
(c) deficiency and depreciation in the value of stores.
406

Power to
make! rules.
Power to
make regula-
tia us.
4.1.
4.2.
(2)
(3)
( L3 )
(3)
(I)
(I)
The Board may. with the prior approval of the Government,
write all. irrecoverable loans and losses exceeding rupeesfive thousand (Rs. Loco}; in each individual case.
The Board shall take suitable action a inst the persons res~
pensible for the loss and shall also sent to the Government a
detailed report together with the action taken against the
persons, if any, responsible For the loss.
The Government may, by notification, make rules Fm- carry-
ing out (he purposcs of the Act.
In particular and without prejudice to the generality of the
Foregoing powers, such rules may provide for all or any of'
the Following matters, 1121111er :-
(a) the place at which the office of the Board shall be
located ;
la) the manner 0F filling casual vacancies among the 111cm-
hem of' the Board and the terms and conaitions of
service of the Chairman, the Executive Officer, the
Accounts Ofiicer and other members of the Board
including the salary and allowances to be paid to
them and the travelling and daily allowances to be
drawn ‘py them when they me on hot ;
l
\
(c) the procedure to be followed in removing a member
who is or has lief-01116 ,subiect to any disqualification ;
(d) the condition subject to which and the mode in
which contracts may he entered into by or on behalf
of the Boarcl ;
(e) the time within which and the form in which the
'
budget anrl the supplementary budget shall be pre‘
pared and submitted in each year under sub-section
(1) of section 23 and section 25 ;
(F) the piecedure to be followed. and the condition to
he observed in horroxving wrong-y under su-.—section
(3) of section 30 ;
(g) the procedure to he followed for placing the Board
in passession of Funds.
In regard to the iolloxiring, the Government may, in prior
consultation with the Commission, make rules by notifica-
tion, to give efiect to the provisions of this Act :-
(a) The procedure to he followed and the condition to
be observed in granting loans under section 3:: ;
(b) the £011“ and inanuer in which the accounts of the
Board shall be maintained under sub-section (1) of
section 3 I ;
(c) the form and manner in which the returns, reportsl
or the statements shall he submitted under sub-sec-
tion (I) of section 32 and section 33 ;
(cl) constituting the Stancliug Finance Committee under
subsection (1) of scetion 15 ;
(c) any other nmttcrs which is to he or may be prescri-
bed.
The Board may, with the previous sanction of the Govern-
ment, by notification, make regulations not inconsistent
with this Act and the rules made thereunder, For enabling
it to perform its functions under this Act.
in Particular and without prejudice to the generality of the
407

Power to 4.3.
remove difi‘i-
colties.
Repeal and 44..
Sewing.
foregoing powers, such regulations may provide for all or
any of the following matters, namely
:~
(3) The time and place of meetings of the Board, the
procedure to be followed in re ard to transaction of
business at such. meetings and t quonnn necessary
for the transaction of such business at: a meeting ;
5b) functions of committees and the procedure to he
followed by SuCl'l committees in the discharge of
their functions ;
(c) the delegation of powers and duties to the Executive
Officer or any officer of the Board ;
(d) the persons by whom and the steamer in which pay-
ment, deposi.s and investment may be made on
behalf of the Board ;
(e) the custody of moneys required for the current ex-
penditure of the Board and inVestment of moneys
not so required.
(3) The Board may, in consultation and with the previous sanc-
tion of the Goternment, by notification, make regulations-
to provide for the maintainance of the minutes of t mee-
ting of the Board and the transmission of the copies thereof-
to the Government and the Commission.
If any diHiculty arises in giving efi'ect to the provisions of this
Act, the State Government may take such steps or issue such orders
not inconsistent with the provisions of the Act as may appear to it
to be necessary or expedient for the purpose of removing such di-
Pficulty :
Provided that no such order shall be made after the expiry
of a period of two years from the date of commencement of this Act.
(1) On and from the date of commencement of this Act, the
provisions of the Sikkim Khadi and Village Industries Board Act,
I978 shall stand repealed.
..
((2) Notwithstanding such repeal, anything done or any action
taken under the Act so repealed shall be deemed to have been
done or taken under the corresponding provisions of this Act.
By Order of the Governor,
B.R. PRADHAN,
II of1978.
Secretary to the Government of Sikkim,
Law Department.
one. 16(28)LD/77-96
408

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