The Kerala Grandhasala Sangham (Taking over of Management) Act, 1977

THE KERALA GRANDHASALA SANGHAM (TAKING OVER OF MANAGEMENT) ACT, 1977

(Act 19 of 1977)

Preamble. Sections:

(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.

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; (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.

(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 eleven years.

(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.

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.

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.

(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.

(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.

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.

(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. (3) The Government may take all necessary steps for securing possession of all properties of the Grandhasala Sangham.

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.

(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).

(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 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.

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.

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.

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.

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.

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.

(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 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.

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.

(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.