The Karnataka Silkworm Seed, Cocoon and Silk Yarn (Regulation of Production, Supply, Distribution and Sale) Act, 1959

THE KARNATAKA SILKWORM SEED, COCOON AND SILK YARN (REGULATION OF PRODUCTION, SUPPLY DISTRIBUTION AND SALE) ACT, 1959

Short title, extent and commencement. (1) This Act may be called the Karnataka Silkworm Seed Cocoon and Silk Yarn (Regulation of Production, Supply, Distribution and Sale) Act, 1959. (2) It extends to the whole of the State of Karnataka. (3) Sections 10 and 19 shall come into force at once in the whole of the State of Karnataka and the rest of this Act shall come into force at once in the areas of the State in which the Mysore Silkworm Seed (Control of Distribution) Act, 1952, is in force. All or any of the provisions of this Act (except sections 10 and 19) shall come into force in such other area or areas of the State on such date or dates as the Government may by notification specify.

Definitions. In this Act, unless the context otherwise requires,— (a) “cocoon” means cocoon produced by mulberry, tassar, muga and eri silkworms, either green or stifled, dried or in any other state or condition, but shall not include pierced cocoon; Explanation.—In this clause pierced cocoon means a cocoon from which moth has cut out; (b) “cocoon market” means a market established under section 10, for the sale or purchase of cocoons of all kinds intended for reeling; (c) “cross-breed cocoons” means cocoons produced by rearing silkworm seeds produced by cross-breeding of two different races of silkworms; (ca) “dupion silk yarn” means silk yarn reeled out of double cocoons or inferior cocoons (cb) “dyer” means a person incharge of an establishment where silk yarn is dyed; (d) “Government” means the State Government; (e) “Licensing Authority” means an officer appointed by notification by the Director of Sericulture in Karnataka for such areas and for such purposes, as may be specified in the notification; (ee) “Licenced dealer” means a person who carries on the business of buying and selling silkyarn, either brought from outside the State or purchased in silk exchange or from a licenced trader or any other licenced dealer. (f) “licensed trader” means a person who is licensed to purchase silk yarn in a silk exchange; (g) “notification” means a notification published in the Official Gazette; (h) “prescribed” means prescribed by rules made under this Act; (i) “rearer” means a person engaged in rearing silkworms for the production of silkworm cocoons, whether for reproduction or reeling; Explanation.—In this clause “rearing” includes all operations from the incubation of silkworm eggs and brushing of silkworms to the harvesting of cocoons; (ia) “reeler” means a person in charge of a reeling establishment and carrying on the business of reeling cocoons; Explanation.—In this clause,— (a) “reeling establishment” means an establishment where silk is reeled from cocoons with the help of any machine or contrivance of any kind worked by power or without power; (b) “power” means any form of energy which is mechanically transmitted and is not generated by human or animal agency and includes electrical energy; (ib) “silk exchange” means a silk exchange established under section 10A for the sale or purchase of silk yarn and includes silk stores; (j) “silkworm” means mulberry tassar, muga and eri silkworm; (k) “silkworm seed” means silkworm cocoons of all kinds (except cross breed cocoons) used for preparing seed and includes moths, eggs and any silkworms of whatever description intended to be used or reared for purposes of reproduction. (l) “silk yarn”, means silk reeled out of cocoons and includes twisted silk yarn, dupion silk yarn, spun silk yarn and noil silk yarn; Explanation.—For the purpose of this clause, “Noil silk Yarn means silk yarn spun from silk noils which is short staple residue from the dressing operation of the silk spinner; (m) “spun silk yarn” means silk yarn spun from pierced or spoilt cocoons, fluff from cocoons, pieces of silk noils or other silk waste; (n) “twisted silk yarn” means two or more silk yarn twisted together and includes warps; and (o) “twister” means a person in charge of an establishment where twisted silk yarn is produced. (p) “weaver” means a person incharge of weaving establishment where fabrics are manufactured by using silk yarn;

Regulation of production, etc., of silkworm seed. No person shall produce, prepare, store, transport, sell or otherwise distribute or dispose of silkworm seed, except under and in accordance with the terms and conditions of a licence granted under this Act.

Regulation of rearing. (1) No person shall engage in the rearing of silkworms for the production of silkworm cocoons except under and in accordance with the terms and conditions of a licence granted under this Act. (2) The Government may by notification direct that in any specified area no silkworm other than silkworm of specified race shall be reared and that such silkworm shall be reared from silkworm seed obtained from specified sources. On the issue of such notification, no person shall rear in such specified area any other race of silkworm or obtain silkworm seed from any other source.

No person shall be in possession of silkworm seed unless,- (a) he is a rearer; or (b) he holds a licence granted under this Act; or (c) he is authorised in writing by the prescribed officer to possess silkworm seed.

Regulation of disposal of silkworm cocoons. No rearer shall dispose of or agree to dispose of or in pursuance of an agreement entered into, make delivery of silkworm cocoons except to persons holding a licence under this Act.

Regulation of sale or purchase of silkworm cocoons for reeling. (1) In any area in which a cocoon market is established under this Act,— (a) no rearer shall sell or agree to sell; and (b) no person shall purchase or agree to purchase, silkworm cocoons except in such cocoon market and except in accordance with such conditions and in such manner as may be prescribed. (2) After a cocoon market is established for any area, no person shall except in such cocoon market, use or permit the use or assist in the use of, any building, room, tent, enclosure, vehicle, vessel or place in such area for the sale or purchase of silkworm cocoons or in any manner aid or abet the sale or purchase of silkworm cocoons.

Regulation of reeling. No person shall carry on the business of reeling silkworm cocoons unless he holds a licence granted under this Act. (bb) no licenced dealer, shall sell or agree to sell silkyarn of any origin brought or caused to be brought by him from outside the State except in a silk exchange, and except in accordance with such conditions and in such manner as may be prescribed. (2) no person shall, except in such silk exchange, use or permit the use or assist, in the use of, any building, room, tent, enclosure, vehicle, vessel or place for the sale of silk yarn by or purchase of silk yarn from, a reeler or in any manner aid or abet the sale or purchase of silk yarn. (3) Nothing contained in sub-section (1) shall apply to,- (i) second and subsequent sale of silkyarn of any origin brought from outside the State; (ii) a licensed dealer who has hundred percent export oriented unit and imports silkyarn from outside India for the purpose of manufacture of silk fabrics and to export it outside India. (4) No person shall carry on the business of buying and selling silkyarn brought from outside the State or purchased in a silk exchange or from a licensed trader or any other licenced dealer unless he holds a licence under this Act; Provided that a person carrying on such business immediately before the commencement of this sub-section may continue to do so, for a period of three months from such commencement and, if he has made an application for such licence within the said period of three months, till the disposal of such application.

Regulation of Sale and Purchase of Silk Yarn, etc. After a silk exchange is established under section 10A,— (1) (a) no reeler or a reeler who is also a twister shall, sell or agree to sell silk yarn reeled, or as the case may be, reeled and twisted by him; (b) no person, whether a licenced trader or not, shall purchase or agree to purchase silk yarn from a reeler or from a reeler who is also a twister,

Every person who desires to obtain a licence under this Act shall make an application to the Licensing Authority in such form as may be prescribed.

Regulation and distribution of silkworm seed. (1) The Government may, from time to time, by notification, (a) specify the places at which cocoon markets, cocoon market yards and cocoon stores shall be located; (b) appoint a Market Officer to levy and collect the market fee payable under this Act in respect of cocoons sold or purchased in the cocoon market, and constitute a committee consisting of two representatives of rearers, and three representatives of reelers, with the Market Officer as Chairman, for regulating generally the procedure for the conduct of business in the cocoon market and for the performance of such functions as may be determined by the Government; (c) specify the sericultural areas in the State to be served by each cocoon market where silkworm cocoon produced within such areas shall be sold; (d) assign zones and markets in which any reeler may carry on his business. (2) All transactions involving the sale or purchase of cocoons in a cocoon market shall be by open auction, the payment of the price shall be in cash and the cocoons shall be sold by weight, as required by or under the Karnataka Weights and Measures (Enforcement) Act, 1958.

(1) The Government may, by notification,— (a) specify the place or places at which the silk exchanges shall be located; (b) appoint for each silk exchange, a Silk Market Officer to levy and collect the market fee payable in respect of silk yarn sold or purchased in the silk exchange and constitute a committee consisting of four representatives of reelers, two representatives of twisters and two representatives of traders with the Silk Market Officer as Chairman for regulating generally the procedure for the conduct of business in the silk exchange and for the performance of such functions as may be prescribed. (2) All transactions involving sale or purchase of silk yarn in a silk exchange shall be by open auction, the payment of price shall be in cash and the silk yarn shall be sold by metric weight. (3) Subject to the pleasure of the Government the members of the committees constituted under clause (b) of sub-section (1), shall hold office for a period of one year.

The Director of Sericulture in Karnataka may, subject to such conditions as may be prescribed, authorise any private institutions or organisations to take up research in, and development of silkworm races, production of cocoons and reeling of yarn.

Power to require information and powers of entry, inspection, seizure, etc. (1) The Director of Sericulture in Karnataka or any officer authorised in this behalf by the Government, by notification, may, with a view to securing compliance with this Act,— (a) require any person licensed under this Act to furnish such information as may be specified; (b) inspect or cause to be inspected any return, document or account book in the possession of a person licensed under this Act; (c) enter and inspect any premises, land, vessel, vehicle or place of any person licensed under this Act, with a view to satisfying himself that such person is complying with the provisions of this Act or of any rule or order made thereunder or with a view to detecting the presence or otherwise of any silkworm disease; (d) at all reasonable times enter and search any premises, land, vessel, vehicle or place wherein or in any part of which silkworm is reared or silkworm, silkworm seed cocoons or silk yarn is stored or is being transported and seize or authorise any person to seize any silkworm, silkworm seed cocoons or silk yarn, including any vessel, vehicle receptacle, apparatus, package or covering in which such silkworm, silkworm seed cocoons or silk yarn is contained, in respect of which he has reason to believe from personal knowledge or from information given by any person and taken down by him in writing that silkworm disease has occurred or that a contravention of this Act or of any rule or order made thereunder has been or is being committed; (e) take or cause to be taken such steps as may be considered by him expedient or necessary to prevent the spread of silkworm disease or to eradicate it, including the disinfection of any place, or disinfection or destruction of any silkworm seed or silkworm, or of any vessel, receptacle or apparatus, used in its production, preparation, storage or transport, and such other action as may be prescribed. (2) Every owner, occupier or other person in charge of any premises, land, vessel, vehicle or place referred to in clauses (c) and (d) of sub-section (1) shall give all reasonable facilities to the officer authorised under sub-section (1) in carrying out his functions under the said sub-section.

Penalties. (1) Any person who contravenes the provisions of section 3 or 4 shall be punishable with fine which may extend to Rs. 1,000. (2) Any rearer who contravenes the provisions of section 6 or clause (a) of sub-section (1) of section 7, shall be punishable with fine which may extend to Rs. 1,000. (2A) Any person who contravenes the provisions of clause (b) of sub-section (1) of section 7 or sub-section (2) of that section shall be punishable with imprisonment which may extend to three months or with fine which may extend to Rs. 5,000 or with both. (2B) Any person who contravenes the provisions of section 5A or section 8A, shall on conviction be punished with imprisonment for a term which may extend to three years and with fine which may extend to Rs. 25,000: Provided that in the absence of special reasons to the contrary such imprisonment shall not be less than six months and fine shall not be less than Rs. 1,000. (3) Any person who contravenes the provisions of section 8 shall be punishable with fine which may extend to Rs. 1,500. (4) Save as otherwise provided in sub-sections (1), (2), (2A), (2B) and (3), any person who contravenes any of the provisions of this Act or of any rule, order or notification thereunder, shall be punishable with fine which may extend to Rs. 5,000.

Abetment. Whoever abets any offence punishable under this Act shall be punished with the punishment provided in this Act for such offence.

The offences under sub-sections (2A) and (2B) of section 12 shall be cognizable.

Suspension or cancellation of licence, forfeiture of Property and Penalty, etc. (1) The Director of Sericulture in Karnataka may,— (a) without prejudice to any punishment under section 12, after giving the person concerned a reasonable opportunity of being heard, if satisfied that such person has contravened the provisions of sections 3, 7, 8 or 8A, suspend or cancel the licence granted to such person, (b) after giving the person concerned a reasonable opportunity of being heard direct that any,— (i) silk worm seed, cocoons or silk yarn or any receptacle, apparatus, package or covering containing the same or any other article in respect of which such person has contravened any of the provisions of this Act or rules made thereunder, shall be forfeited to the Government; and (ii) such person shall pay a penalty upto Rs. 50,000 but not exceeding the value of the property in relation to which the provisions of this Act or rules have been contravened. (2) No person on whom the penalty is imposed under sub-clause (ii) of clause (b) of sub-section (1) shall be liable for prosecution in respect of the same facts for an offence under this Act. (3) Any person aggrieved by the order of suspension or cancellation of licence, or forfeiture of property or imposition of penalty under sub-section (1) may appeal to the

Composition of offences. (1) Any offence punishable under this Act may be compounded by the Director of Sericulture in Karnataka or such other officer as may be prescribed on payment of such amount, not exceeding the amount of fine payable for such offence, as may be determined by the Director or such other officer. (2) On the composition of an offence under sub-section (1), the person concerned, if in custody, shall be set at liberty, and if proceedings in any criminal court have been instituted against such person in respect of the offence, the composition shall be deemed to amount to an acquittal and no further proceedings shall be taken against such person in respect of such offence.

Court competent to try offences under this Act and cognizance of offences. (1) No court other than the court of Magistrate of the First Class shall take cognizance of any offence under this Act. (2) No court shall take cognizance of an offence other than a cognizable offence under this Act except on a complaint in writing of an officer empowered by the Government in this behalf.

Protection of persons acting under the Act. No suit, prosecution or other legal proceedings shall be instituted against any person for anything which is in good faith done or intended to be done under this Act.

Mode of recovery of dues. Any amount due to the Government under this Act, whether as fees, penalty or otherwise may, without prejudice to any other mode of collection, be recovered as an arrear of land revenue.

Officers to be deemed public servants. Every officer acting in pursuance of the provisions of this Act or rules or orders made thereunder shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

(1) There shall be constituted in the State of Karnataka a fund called the Karnataka Silk Worm Cocoon and Silk Yarn Development and Price Stabilisation Fund. (2) All moneys received by way of market fees, license fees, or other fees or charges and all grants or contributions made by the Government shall form part of the Fund established under sub-section (1). (3) The amount at the credit of the said fund shall not be expended except for the purpose of stabilizing the prices of cocoons and silk yarn and for the development of rearing of silkworm seed, reeling and twisting of silk yarn and matters connected therewith and such other matters as may be prescribed.

(1) The Government may subject to the condition of previous publication, by notification, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for,- (a) the duties and powers of officers authorised to enforce the provisions of this Act and the manner of constitution of market committees and the powers and duties of such committees; (b) the qualifications of persons who produce or prepare silkworm seed for rearing of silkworms and other persons to whom licences under this Act may be granted; (c) the grant of licences and the imposing of conditions in respect of the same and fees for the grant of such licences; (d) the sanitary and other conveniences that should be provided for at the production and distribution centres of silkworm seed; (e) the grant of duplicate licences and the renewal of licences and fees for the same; (f) appeals from any order under this Act, the authority to which such appeals shall lie, the time within which such appeals should be made and the procedure for dealing with such appeals; (g) the forms of licences to be granted, returns to be submitted and accounts to be maintained under this Act; (h) the market fee payable by the rearers and the reelers in respect of cocoons sold and purchased in the cocoon market, such fee not exceeding two per cent of the price of the cocoons; (ha) the market fee payable by the reelers, the reelers who are also twisters and licensed traders in respect of silk yarn sold or purchased by them in the silk exchange, such fee not exceeding two per cent of the price of silk yarn; (hb) amenities and facilities to be provided in the silk exchange including settlement of disputes between the sellers and purchasers of the silk yarn; (hc) the sitting fee and other allowances payable to the members of the committees constituted under sections 10 and 10A; (hd) matters relating to the Fund constituted under section 17A; (i) the particulars to be furnished by any person of the occurrence of silkworm disease in silkworm or silkworm seed, and the steps to be taken for the prevention or eradication of such disease ; (j) generally regulating the procedure to be followed in proceedings under this Act; (k) any other matter which may be prescribed under this Act. (2A) A rule under this Act may be made with retrospective effect and when such a rule is made the reasons for making the rule shall be specified in a statement laid before both the Houses of the State Legislature. Subject to any modification made under sub-section (3) it shall have effect as if enacted in this Act. (3) All rules made under this Act shall be laid as soon as may be after they are made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more sessions and if before the expiry of the said period, either House of the State Legislature makes any modification in any rule or directs that any rule shall not have effect and if the modification or direction is agreed to by the other House, the said 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.

Repeal and Savings. The Mysore Silkworm Diseases Control Act, 1943 (Mysore Act VIII of 1943) and the Mysore Silkworm Seed (Control of Distribution) Act, 1952 (Mysore Act XXXIII of 1952) as in force in the Mysore Area except Bellary District, the Madras Silkworm Diseases (Prevention and Eradication) Act, 1948 (Madras Act II of 1948) as in force in the Bellary District and the Madras Silkworm Diseases (Prevention and Eradication) Act, 1948 (Madras Act II of 1948) and the Madras Silkworm Seed (Production, Supply and Distribution) Act, 1956 (Madras Act XXIII of 1956) as in force in the Mangalore and Kollegal Area, are hereby repealed: Provided that such repeal shall not affect,— (a) the previous operation of the said enactments or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the said enactments; or (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the said enactments; or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed: Provided further that subject to the preceding proviso anything done or any action taken (including any appointment or delegation made, notification, order, instruction or direction issued, rule framed) under the repealed enactments, so far as they are consistent with the provisions of this Act shall be deemed to have been done or taken under the corresponding provisions of this Act and shall continue until superseded by anything done or any action taken under this Act.