The West Bengal Khadi And Village Industries Board Act, 1959

West Bengal Act XIV of 1959 
THE WEST BENGAL KHADI AND VILLAGE 
INDUSTRIES BOARD ACT, 1959. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, Extra- ordinary, of the-29th October, 1959.] 
[29th October, 1959.] 
An Act to provide for the establishment of a Board for the 
organisation, development and regulation of khadi 
industries and village industries in the State of West 
Bengal and certain matters connected therewith. 
WHEREAS it is expedient to provide for the establishment 
of a Board for the organisation, development and regulation 
of khadi industries and village industries in the State of 
West Bengal and certain matters connected therewith ; 
It is hereby enacted in the Tenth Year of the Republic 
of India, by the Legislature of West Bengal, as follows :- 
1. (1) This Act may be called the West Bengal Khadi 
and Village Industries Board Act, 1959. 
(2) It extends to the whole of West Bengal. 
(3) It shall come into force on such date as the State 
Government may, by notification in the Official Gazette, 
appoint. 
Short 
title, 
extent ancl„ 
commen--
cement. 
2. In this Act unless there is anything repugnant in the De mi. 
subject or context,— 	 tions. 
(a) "the Board" means the West Bengal Khadi and 
Village Industries Board established under section 
3; 
(b) `!khadi" means any cloth, was ,  en on handlooms in 
India from cotton, silk or woollen yarn hand-spun 
in India or from a mixture of any two or all of 
such yarns; 
(c) "prescribed" means prescribed by rules made under 
this Act; 
lift) "village industries" means the industries specified 
in the Schedule and includes such other industries 
as the State Government may, from time to time, 
by notification in the Official Gazette, specify in 
this behalf in consultation with the Board. 
*Price—Indian; 12 nP.; Eliglfsh, 3d. 
GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
Establish. ment of the Board. 
Constitu-tion of the 
Board. 
2 The West Bengal Khadi and Village industries Board 
Act, 1959. 
[West Ben. Act 
(Sections 3-7.) 
3. (1) As soon as may be, after the commencement of this 
Act, a Board, to be called the West Bengal Khadi and Village 
Industries Board, shall be established by the State Govern-
ment for the purposes of this Act. 
(2) The Board shall be a body corporate having perpetual 
succession and a common seal and may, by the said name, sue 
and be sued. 
4. (1) The Board shall consist of such number of 
members not exceeding fifteen, as the State Government may, 
by notification in the. Official Gazette, appoint, of whom— 
(a) one shall be the Development Commissioner, Gov- 
ernment of West Bengal, or his nominee; 
(b) not more than five shall be persons actively engaged 
for not less than five years in the work of khadi 
organisations recognised by the Khadn and Village 
Industries Commission; and 
(c) not more than five shall be persons having practical 
experience of or actively engaged iMeany village 
industry. 
(2) One of the members of the Board shall be appointed by 
the State GOernment as the Chairman of the Board z.nd the 
names of the Chairman and other members of the Board 
shall, as soon as may be after appointment, be published in 
the Official Gazette. 
(3) The State Government shall, after consultation with 
the Board, appoint a member of the, Board other than the 
Chairman to be the Secretary of the Board. 
5. The State Government shall in consultation with the 
Board appoint a person not being a member of the Board to 
be the Executive Officer of the Board. 
6. (1) The terms and conditions of office of the Chairman, 
the Secretary and the other members,. and of the Executive 
Officer, of the Board shall be such as may be prescribed : 
Provided that the members of the Board including the 
Chairman and the Secretary shall be eligible for 
reappointment. 
(2) The non-official members of the Board shall be paid 
such allowances from the funds of the Board as may be 
prescribed. 
Executive Officer of the Board. 
Term of office and conditions of office. 
Resigns- 7. The Chairman or any other member of the Board may 
tion. 
	
	 resign his office by giving notice in writing to the State 
Government and shall, on such resignation being notified in 
the Official Gazette by the State Government, be deemed to 
have vacated his office on and from the date on vc hich the 
resignation is so notified. 
The West Bengal Khadi and Village Industries Board 3 
Act, 1959. 
XIV of 1959.] 
(Sections 8-10.) 
8. (1) Casual vacancies among the members of the Board 
shall be filled up by the State Government by appointment of 
new members : 
Provided that where a casual vacancy arises among the 
members belonging to the class referred to in clause (b) or 
clause (c) of sub-section (1) of section 4, the new member to 
be appointed shall belong to that class. 
(2) No act or proceeding of the Board shall be deemed to 
be invalid merely by reason of the existence of any vacancy 
• in the Board or any defect or irregularity in the appointment 
of any member or in the constitution of the Board. 
Casual 
vacancies 
and 
savings as 
to pro-
ceedings 
of the 
Board. 
9. (1) The Secretary shall exercise such powers and per-
form such duties as may be prescribed or, as may, subject to 
the provisions of this Act and the rules made thereunder, be 
entrusted to him, from time to time, by the Chairman. 
(2) Subject to such rules as may be made under this Act, 
the Board may appoint such other officers and servants as it 
considers necessary for the efficient performance of its func-
tions under this Act: 
Powers 
and duties 
of Secre-
tary and 
appoint-
ment of 
other 
officers 
and 
servants 
of the 
Board. 
Provided that no person whose honorarium or maximum 
salary exceeds three hundred rupees per month shall be 
appointed by the Board except with the previous approval 
of the State Government. 
10. (1) On the establishment .of the Board the State Transfer 
Government may, by notification in the Official Gazette,  es  
of rights 
transfer to the Board the rights and liabilities of the State and 
bilities of 
Governtment in relation to such khadi industries or village the state 
a 	 industries as may be specified in the notification. 	 Govern- 
ment to 
the Board. 
(2) On the issue of a notification under sub-section (1) all 
liabilities incurred, all contracts executed and all matters 
and things engaged to be done by the State Government at 
any time before and up to the date of publication of the 
notification, in connection with the organisation, develop-
ment or regulation of the khadi industries or the village 
industries specified in the notification, shall, on and from 
the date of publication of the notification, be deemed to have 
been incurred, executed or engaged to be done by the Board, 
and in all suits and other legal proceedings instituted by or 
against the State Government in connection with the afore-
said industries before and up to the date of publication of 
the notification, the Board, shall, on and from such date, be 
deemed to be substituted for the State Government, 
4 The West Bengal khadi and Village Industries Board Act, 1959. 
[West Ben. Act 
(Sections 11,12.) - 
it (1) The Board shall meet at such times and places 
and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to the trans-
action of business at its meetings as may be provided by 
regulations Made by the Board under this Act : 
Provided that the Board shall meet at least once in every three months. 
(2) The Chairman or, in his absence, any member chosen by 
the members present from amongst themselves shall preside at a meeting of the Board. 
(3) All questions at a meeting of the. Board shall be 
decided by a majority of the votes of the members present 
and in the case of equality of votes, the Chairman, or, in 
his absence, the person presiding, shall have a second -or casting vote. 
12. (7) The Board shall generally organise, develop and regulate khadi industries and village industries and dis-
charge such other duties and perform such other functions 
as the State Government may direct for the purpose of carry- 
ing out the objects of this Act, but it will not be a trading corporation. 
(2) In particular and without prejudice to the generality .  of the foregoing provision, the Board may take such steps as it may think fit to— 
(a) establish, encourage, assist and carry on khadi indus-tries and village industries; 
(b) help the people by providing them with work in con-
nection with the industries established or carried 
on by it, which they can perform in their homes, 
and give them such financial assistance as they may need for such work; 
encourage the establishment of Co-operative Societies for khadi industries and village industries; 
(d) maintain training centres and train people at such 
centres or arrange for their training at centres 
outside the State of West Bengal with a N. iew to 
equip them with necessary knowledge for estab. lishing or carrying on khadi industries and village industries; 
(e) arrange for providing raw materials, tools and 
implements to persons engaged in khadi industries and village industries and for the sale of the 
finished products of such industries ;  
Meetings 
of the 
Board. 
Functions 
of the 
Board. 
(c) 
The West Bengal Khadi and Village Industries Board 5 
Act, 1959. 
XIV of 1959.] 
(Sections 13-15.) 
arrange for giving publicity to, and popularising, the 
finished products of khadi industries and village 
industries by opening - stores, 	 shops and 
emporiums or organising exhibitions ; 
(g) educate the public and impress upon them the 
advantages of patronising the products of khadi 
industries and village industries; 
(h) conduct or encourage research work in connection 
with khadi industries and village industries; 
(i) maintain or assist in the maintenance of institutions 
for the development of khadi industries and 
village industries. 
13. The Board shall, for the purpose of carrying out its 
functions under this Act, have the following powers, 
namely :— 
(a) to acquire and hold such movable and immovable 
property as it deems necessary and to lease, 011 
or otherwise transfer any such property : 
Provided that in the case of immovable property such 
powers shall not be exercised without the previous 
sanction of the State Government; 
(b) to incur expenditure in discharging its functions 
under this Act; 
(c) to enter into any contract and to do all things neces-
sary for the purposes of this Act; 
(d) to write off losses subject to such conditions as may 
be prescribed. 
General 
powers 
of the 
Board. 
(I) 
14. The Board may, for the purpose of effectively carry- Special 
ing out its functions under this Act,— 	 powers 
(a) advance loans on such terms and conditions as may go tahred to be prescribed, and 	 grant 
loans and (b) make grants for the execution of specific schemes. 	 advance 
grants. 
15. (1) In each year, by such date and in such form as Annual 
may be prescribed, the Board shall prepare and forward to pro- 
the State Government a programme of the work it proposes gramme 
of the to undertake or continue during the following year in the Board. 
discharge of its functions referred to in section 12 together 
with a Schedule of the staff of officers and servants already 
employed and to be employed in the following year by the 
Board. 
(2) The programme shall contain— 
(a) particulars of any scheme or any work which the 
Board proposes to execute during the following 
year; 
6 	 The West Bengal Khadi and Village Industries Board Act, 1959. 
[West Ben. Act 
(Sections 16-19.) 
(b) particulars of any undertaking which the Board 
proposes to organise during the following year; 
(c) such other particulars as may be prescribed. 
(3) The State Government may sanction the programme 
and the Schedule of staff of officers and servants with such modification as it deems fit. 
Supple- 	 16. The Board may in any year prepare and forward to mentary the State Government for its sanction a supplementary pro- 
gramme, programme in such form and by such date as may be 
prescribed and the provisions of sub-section (3) of section 15 shall apply to such supplementary programme. 
Budget. 	 17. (1) The Board may in each year, by such date and in such form as may be prescribed, prepare and submit to 
the State Government for its approval two separate budgets for the following year to be called the Khadi Budget and the Village Industries Btdget showing the estimated receipt and expenditure in respect of khadi industries and village industries, respectively, during that year. 
(2) The State Government may sanction the budgets 
.submitted to it with such modification as it thinks fit. 
18. The Board may in any year submit to the State 
Government for its sanction a supplementary budget in such 
form and by such date as may be prescribed and the provisions of sub-section (2) of section 17 shall apply to such supple-mentary budget. 
19. (1) Subject to the provisions of sub-sections (2) and (3), no sum shall be expended by or on behalf of the Board 
unless the expenditure is covered by a specific provision in the budget. sanctioned by the State Government. 
(2) The Board may, within such limits and subject to such 
conditions as may be prescribed, sanction any reappropriation 
from one head of expenditure to another or from the provi-
sion made for one scheme to the provision made for another. 
(3) Notwithstanding anything contained in sub-section (2), no reappropriation— 
(a) from the Khadi Budget to the Village industries Budget or from the Village Industries Budget to the Khadi Budget, or 
(b) from the head "loan" to another head of expenditure 
or from another head of expenditure to the head "loan" in either budget, 
shall be sanctioned by the Board without the previous approval of the State Government. 
• IF 
Supple-
mentary 
budget. 
Restric-
tions as to 
expendi. 
tura. 
The West Bengal Khadi and Village Industries Board 	 7 
Act, 1959. 
XIV of 1959.] 
(Sections 20-24.) 
20. The State Government may transfer to the Board, 
buildings, land or any other property movable or immovable 
for the use of, and management by, the Board for the pur-
poses of -  this Act on such terms and conditions as the State 
Government may impose. 
21. (1) The Board shall have two separate funds to be 
called "the Khadi Fund" and "the Village Industries Fund" 
and all grants and advances made to the funds, from time 
to time, by the State Government for the purpose of organisa-
tion, development or regulation of khadi industries or 
village industries and all other receipts of the Board shall be 
credited to the Khadi Fund or the Village Industries Fund, 
as the case may be, and all payments by the Board in respect 
of khadi industries or village industries shall be made from 
the appropriate fund. 
(2) All monies belonging to the Board shall be deposited 
in such custody and in such manner as the State Govern-
ment may, by special or general order, direct. 
(3) The accounts of the Board shall be operated, either 
jointly or severally as the Board may direct by order made 
in this behalf, by the Secretary and such other officer or 
officers of the Board as it may authorise. 
22. (1) The State Government may, from time to time, 
make grants and advance loans, to the Board for the purposes 
of this Act on such terms and conditions as the State Govern-
ment may determine in each case. 
(2) Subject to the provisions of this Act and the rules made 
thereunder, the Board may borrow any sum required for the 
purposes of this Act. 
(3) The Board may accept grants, subventions, donations 
or gifts from the Government or a local authority or any 
body or association whether incorporated or not or any 
individual for all or any of the purposes of this Act. 
Transfer 
of pro-
perty. 
Funds of 
the Board. 
Grants and 
loans to 
the Board. 
23. All properties, funds and other assets of the Board 
shall be held and applied by it subject to the provisions of, 
and for the purposes of, this Act and not otherwise. 
24. (1) The accounts of the Board shall be maintained 
and an annual statement of accounts shall be prepared in such 
form and manner as may be prescribed. 
(2) The accounts of the Board shall be audited annually 
by an auditor approved by the State Government. 
Applica-
tion of 
funds and 
properties. 
Accounts 
and 
audit. 
8 The West Bengal Khadi and Village Industries Board Act, 1959. 
[West Ben. Act 
(Sections 25-30.) 
Loans and 	 25. Subject to such rules as may be made under this unutilised Act—grants 
by the 	 (a) any loan advanced by the Board under this Act, 
to be
Board 	
including any interest chargeable thereon, or 
able as 
public 	 part thereof, which remains unutilised f of- the demands. 	 purpose for which the grant is made, 
shall be recoverable as a public demand. 
Annual 
report. 
Further 
report. 
Direc-
tions by 
the State 
Govern-
ment and 
advice 
and 
guidance 
of 
experts. 
Members, 
officers and 
servants 
of the 
Board to 
be public 
servants. 
26. (1) Within three months of the end of every year, 
the Board shall prepare and forward to the State Government, 
in such form and manner as may be prescribed, an annual 
report giving a complete account of its activities during such year. 
(2) A copy of every report forwarded to the State Govern- ment under sub-section (1) shall, as soon thereafter as possible, be laid before the State Legislature. 
27. The Board shall, by such date, at such intervals and 
in such form and manner as may be prescribed, submit to 
the State Government such further report containing such particulars as may be prescribed. 
28. (1) In the discharge of its functions under this Act 
the Board shall be guided by such directions on questions of 
policy as may be given to it from time to time by the State Government. 
Explanation.—If any question arises whether -a question is a question of policy or not, the decision of the State Gov-ernment shall be final. 
(2) Subject to any direction of the State Government, the 
Board may seek and obtain the guidance and advice of experts in khadi industries and village industries for performing- its functions under this Act. 
29. Members, officers and servants of the Board shall, 
when acting or purporting to act in pursuance of any provi- 
sions of this Act, be deemed to be public servants within the xix of  
186 
meaning of section 21 of the Indian Penal Code. 	 0.  
Indem. 
nity. 
30. No suit, prosecution or other legal proceeding shall 
lie against any person for anything which is in good faith 
done or intended to be done in pursuance of this Act or any rule made thereunder. 
• 
The West Bengal Khadi and Village Inetustries Board 9 
Act, 1959. 
XIV 0 1959.] 
(Sections 31, 32.) 
31. (1) If at any time the State Government is satisfied, 
after giving the Board an opportunity of representing its 
case, that— 
(a) the Board has, without reasonable cause or excuse, 
made default in the performance of its duties or 
in the discharge of its functions, or exceeded or 
abused its powers, or 
(b) circumstances have arisen due to which the Board 
is or may be rendered unable to discharge its 
functions under this Act, or 
(a) it is otherwise expedient or necessary to dissolve 
the Board, 
the State Government may, by notification in the Official 
Gazette, make an order dissolving the Board on and from 
such date and for such period as may be specified in the 
order and declaring that the duties, functions and powers of 
the Board shall, during the period of dissolution, be perform-
ed, discharged and exercised by such person or authority 
as may be specified in the order. 
(2) If in any case, the State Government so thinks, fit, it 
may, by notification in the Official Gazette, make an order 
extending the period of dissolution of the Board. 
(3) On the dissolution of the Board under this section, 
suits, prosecutions and other legal proceedings for or against 
the Board shall, during the period of dissolution, be insti-
tuted, defended or continued by the person. or authority 
specified in the order under sub-section (1) in the name of 
the Board in like manner as immediately before the dissolu-
tion of the Board. 
(4) The State Government shall, before the expiration 
of the period of dissolution, reconstitute the Board in accord-
ance with the provisions of section 4. 
(5) The State Government may make such incidental or 
consequential order or orders as may appear to it to be neces-
sary for giving effect to the order made under sub-section (1). 
(0) No.suit shall lie against the State Government for any 
order made by it under this section. 
32. (1) The State Government may, by notification in 
the Official Gazette, make rules to give effect to the provi-
sions of this Act. 
(2) In particular and without prejudice to the generality 
of the foregoing power, such rules may provide for all or 
any of the following matters, namely :— 
(a) the terms and conditions of office of the Chairman, the 
Secretary and the other members, and of the Execu-
tive Officer, of the Board including the salaries, 
honoraria and allowances to be paid • to them; 
Dissolu-
tion of 
the 
Board. 
Power to 
make , 
rules. 
• 
10 The West Bengal Khadi and Village Inctustries Board Act, 1959. 
[West Ben. Act 
(Section 33.) 
(b) disqualification for membership of the Board and the 
procedure to be followed in removing a member 
who is or has been subject to any disqualification ; 
(c) the procedure to be followed by the Board in the 
discharge of its functions under this Act; 
(d) the powers to be exercised and the duties to be per-
formed by the Secretary and the Executive Officer of the Board ;  
(e) the procedure to be followed and the conditions to be 
observed by the Board in borrowing money, 
advancing loans and making grants; 
(f) the conditions subject to which and the mode in 
which contracts may be entered into by or on behalf of the Board ;  
(g) any other matter which is required to be or may be 
prescribed or provided for by rules. 
Power to 
make 
regula-
Mons. 
33. (1) The Board may, with the previous sanction of the State Government, by notification in the Official Gazette, make regulations not inconsistent with the provisions of this 
Act or of the rules made thereunder for enabling it to dis-charge its functions under this Act. 
(2) In particular and without prejudice to the generality 
of the foregoing power, such regulations may provide for all 
or any of the following matters, namely :— 
(a) the terms and conditions of appointment and service 
and the salaries and allowances of officers and 
servants of the Board, other than the Secretary 
and the Executive Officer of the Board ;  (b) the time and the place of meetings of the Board, 
the procedure to be followed in regard to 
transaction of business at such meetings and 
the quorum necessary for transaction of business; 
(c) the delegation of powers and duties of the Board to 
the Secretary or the Executive Officer or any other employee of the Board ;  
(d) the maintenance of minutes and proceedings of the 
meetings of the Board and the transmission of 
copies thereof to the State Government; 
(e) the persons by whom payments, deposits and invest-
ments may be made on behalf of the Board ;  (f) subject to the provision of sub-section (2) of section 21, the custody of monies required for the current 
expenditure of the Board and investment of monies not so required. 
The West Bengal Khadi and Village Industries Board 11 
Act, 1959. 
XIV of 1959.] 
(The Schedule.) 
(3) The State Government may, by notification in the 
Official Gazette, rescind any regulation and thereupon such 
regulation shall cease to have effect. 
THE SCHEDULE 
{See section 2(d).] 
1. Bee-keeping. 
2. Cottage match industry. 
3. Cottage pottery industry. 
4. Cottage soap industry using non-edible oils. 
5. Flaying, curing and tanning of hides and skins and 
ancillary industries connected with the same and cottage 
leather industry. 
Ghani oil industry. 
Z. Hand-made paper. 
8. Manufacture of cane-gur and khandsari. 
-9. Palm-gur making and other palm-products industry, 
10. Processing of cereals and pulses. 
11. Blacksmithy. 
12. Carpentry. 
13. Fibre (other than coir)_ 
WBGP-60/61-1104A-5111 

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