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Section 20

The Odisha State-Aid to Industries Act, 1978State Act of Odisha · Act 32 of 1978

(1) A11 moneys recoverable under this ha piunder this er includ,ing any interest- chargeable >-hereon and it& Chapter' ~ ~ ~ f s ; . - i f apy, incur~qd, .if qot paid when they aredue, lip~y; on .a.:iequisitiop made by the Direcfor; be!i&eb- - ,+fed from! ' the person aided.,and his sur 9, if.;&Ff5 it& $f t& &@re;a rrears of. public*. demand, %-:* L # !

, c. . , ,,.. .- A ". ..- :. ' + < I : : + - . - , , . , <aivfi: , ' I!, - r - en .$i)T 1.;; mo-qe - , . y, hqb, i s , piid'fQ $)-$, .gid$i& , brAQ# %&ya. ~ ' t r~;r&d+$r~d.~raW tp : bt;BhF$YHis &by $he ,4?ir<ard~,, !he , ; D i ~ e ~ t b s - s4a11,. , t l;e -,of? 2v, . . , 4 ,-,ap B$c .Ba$p: ~ f . @ .surety, $g far- &s $ossble, , , .+<, ;:. tekdv$r ,. , , ? ,-- :,'&$ $ w ~ B , fro@'the persw aided <4y4 - , ~ q y - I! ,! YO, 'iJe '- sutet'y. 0 .

. ,,., ,, ! . - . 0 .

, ., ..,? . * ,. 8 . J;,-;c: . , t i

(3) Where any industrial concern under liability - ! ,(to, t ~ e , : S i ~ ' - ! G o v ~ r g m e n t ~ makos 'ally defaultrin the . , ..

. .

-I,.-' . . . ;l matkc ofitispayment of any Joau or advmcs, i OF.

'. '- : insfalmept thereof or' othe~wise fails d o ~ m g d y mi& , L ,'!#. , ;:tbe)tems;of:.t~e agreement;-the,3D;irwbrj,with!g y&pv io4 safeguarding ,the interest afi the? Gowernnzledt :md -i s.wurit$of the Golrernment dues. lad: xfielt: .; gi~ing . dmsopihle :notice. to the parties in. d~fa.ult,?~haIl, ,jsubje@-@::the control.,~f the: State .G~wram&t, ,haye - thd:dig$t: .to take possessi~n of the. as-sets o:rrtf.~(&ke , . . o v h ~ the ; management of the indust~id: ,; ~ o i i w ~ ~ ~ :@s !mu.. as ?the. ,right to ;transfer by way~o;f Ie,se: or s3Je tho property pledged, mortgaged, hypntbe~tec;!: .or assigned to the State Goveixment and to realise the ...$ he dues gfthe:State Goveirnment:. ' , . . . r n :r .

f'" Provided .that wher~ the panag~rj i i i i t~~~of , ,'@d&&l c6ncer.n is taken over- by t& : Direc tb.r, he sba!l,bglde.qyd to be the owner o f the conckip fhr *-t& i~urposes of suit; by or against the co$e@;aiid , , , '&AIL bue and:he sued in the qameaf the copcbm:, , -.

, . " - - , .: , .

(4) 'hy.transfer of property made by the ' r ~ i r i ~ t - or in exercise of his powers under sub-section ( 3 ) ah311 vest in the tr ansfesee all rights, in ,or t s the property transferred as if the transfer had been made by the owner of the property.

.", ... 24. (1) -The Governlnent may charge in LCVY of foa resgjpt - !of+ .- ;~pplisatibns, enquiries, inspections and apdit by waomsoover made under the provisions of this Act,-such fee as may be pi.e,scribed.

, , (2) The State Government may charge such fee $S .- g a y be prescribed for any guarantee,given by it ripder the provisions of this Act.

1 ., ,

CHAPTER XV , ' . , SupflJ! , . of machinery on the hire-purchzi'~e*s~stem C ' 2% No machi-nelry shaI1. be aupplied on hirc- Pcrccntage pWcLi;ise system1 unBss the appl.icant-.foil the State-aid ~~~~~~1~~ $ dcposites wit& -the, Director such.pe'rken.tagi= (not being hlrcr.

beIow : ten .per cent) of the cost.. thereof as may bo prmafiibed.. .

... , .

1 23, Whvn an application for such St-iie-aid is all- topjcc- ~ y p d ' the Director shall, subject. €0 and, &acdbrdance 4 in with 'any 'rules that may be made. - ~ a d e r this Act, order whm application malte an- order specify jng tho followipg' particulars, .II.,&.

' ' ,'!$p# :!T . - , , : :(a) khemuount?f-eaoh ;inistalrrient. of rent to . ,, . -. . : ..:':::[be. :paid,30r the hire.,of.tha.,mchinery and . I . ! !I : m~-the.~numh~.ofsu~b~instaImentstobe paid before the mactzine~y~ shaU become tho property of the hirer;

. . .. (b) , the amount of interest, if :any, to be paid . . along. with each instalmont of rent on the t remaining unpaid instalment;

, ' ( c ) the dates on which and the manner in which the aforesaid paymsnt shall be made; and (4, such other particulars as may be prescribed.

{'' '24. Until the hiring is terminated in the m m e r c ~ n d i a ~ n .

hcreinarteter provided, the following provisions shall ~~~~?~a ,,~ppJly~ namely:- hjfc"' &dl- , . ; r ,',; ' + & sysf&&::'

., (i) the .hirer shdl pay punctually without' ' s : . . - - , . : demand, the instalrnents of rent and m- . ,, .,:. - , - unt sf interest.specified in the o~der refer- ? , . , . . red to . in section 23;

r ! r . . . .

900 TEfS ORISSA STATE -AID TO INDUST RJES ACT, 1478 [Or. Act

(b) the hirer shau retain the machinery in his own possession in good and serviceable condition and shall not without the previous written consent of the Director make any addition thereto or alteration therein, nor shall remove the machinery from the premises specified in the application for the supply thereof;

( c ) the machinery shall remain &e sole and absolute property of the State Government and any transfer thereof or assignment of any right, tide or interest therein or the creation of any mortgage, encumbrance or any other charge thereon by the hirer shall be void as against the State Government unless it has been made with, the previous written consent of the Director;

(d) Th? machinery shall not be liable to &stralnt, attachment or sde by any process . , . under any law for the time being in force;

(e) the machinery shall bear a metal pIate in ~e prescribed form and any person who . . wilfully removes or defaces such plate shall be liable to a fine not exeeding five hmdred rupees and it shall be presumed until the contrary is proved that the machinery bearing such metal plate is the property of the State Government hired out under this Chapter;

(f) the hirer shall permit the Director or any person acting under his authority ia this behalf to inspect the machinery at all reasonable times, and the Director or such other person shall have all such powers of entry as may be necessary for the purpose of making an inspection; and

(g) the hirer shalI be bound by such other conditions as may be prescribed or as may be imposed by the Director in any particular case.

~enslqutnces of default 25 If the hirer makes default in payment of the by ,, ce, rent of the machinery, the interest or any other charges payable by him under this Chapter, or fails to comply with any of the conditions specified in or imposed on him undor section 24, the Director may, after wnsidering the explanation, if my, offered by the hirer, terminate the hiring, and may himseIf enter or authorise any other officer in this behalf, to enter upon the premises, in which the machinery, for tbe time being, is kept and seize and tako away the same, whether such premisea belong to the hirer or not.

26. If the machinery is seized and taken away option of h i i s to under section 25, the hirer shall have the option to be ,,,, exercised within one month after such seizure or such machiseized In longer period as may be allowed by the Director, of ,,,,,,- purchasing the same on payment to the Director of the unpaid balance of the cost thereof, such proportion of the interest on the said costs as may be prescribed and the expenses incidental to such seizure and removaI.

27. The hirer may at any time terminate the Termination of hiring by hiring by returning the machinery to the State Govern- -, ment in the manner prescribed.

28. Tf the Director terminates the hiring under Uabtlit~ of section 25 and the hirer does not purchase the machi- birer on t~imination new under section 26 or if the hirer returns the of hiring under - mazhinery to the State Government under section 27, lions the hirer shall not entitled to the refund of the ~ e r - 26.

cent* of cost deposited by him under section 22, or u&ss the State Government ot henvise directs, to the refund or remission of any payment made by or any amount due from during the hiring and he s h d be liable to pay such amount as determined by the Director in respect of any loss or damage, other than by reasonable wear and tear, that may have been caused to the xhachioery during the hiring.

29. When the hirer, after deposit of the per-.rermination oentaga of cost with the Director under section 22, ;::JZ;;

has paid in full, all the instahents of rent, mentioned mst oc in c lam (a) of section 23 togather wiih the interest, machinefy.

cost and other charges payable by bim under thja Chapter, he shall become the owner of the machinery and sha1I thereupon remove the metal plate mentioned in clause (0) of section 24:

Provided that if at any time during the hiring the hirer pays in advance the remaining instalments of rent, the interest payable in irespect thereof shall b remitted.

902 W : QRISSA , STATE-AID TO INDUSTRIES ACT, 1978- . [Or. -Akt ( Sees. 30-33 ) ~ c n a l t i u 30. (1). If the hire,r wilfuliy owits aftor rccciving dve notice to remove the metal p1,ato from any @acfiirny which h.y become his, property under sectia~l 29 agd to return' the saw to the Director, he shall be lia,ble t o ' ~ a ~ a penalty which may extend to fifty ru@,ees.

(2) If the hirer causes any interference in tlzc action qf the Director or any other officer,auth,~rised by him xn this behaIf in entering upon the ' premises . . in which the machinery for the time being'is kept, . .

, . ok in seiziog or taking back such machtnery, , whetber: the premises belong to the hirer or riot, :as proqidedjn section 25;the hirer shall be ligble to: pay d pefidty which may extend to one hundred rupees.

. . .

Recovery of . 3b, AU :sgms pay3blg. under .-this ,cha~ter,sml Bums due uodcr thin bkrec&verable asAif they are arrears of public.demand.

Chapter.

. : . . , . .. - , > CHqPTER V . . , - . .

,. . a Misc$Uaiieeus , ..,-. . .

.., suvr-ion 32. (1) If at any time. it appears toTtb.. State O'BP"rh. ! ': ' . ' &+ertkkfit that .the Board is got prppeily' perfor- . - : - :&inglthe:duties, imposed ,upon i t by or rnddr tqis , . ., , ,. . Act, :'$ !may , .after, .consider$g the .explangti6$'$~G$i, - ,i,! . . .

, : , - &&&j 1 ';by '- 'the' Bdard, ' by. jd' - ,vmg, ~goj*~!,qhd- 6esb.s for h, do?&, ~ k ~ & ; i g , ,d~e ,;mgm+@@b: :of .- tfieL: Bgar&d o&bf:j 5~gn:? & k g o &o .:&&be* :&na;d,jj--@t.-th8t the~:+Aoafi'&ies<ihail ct'h$&jvzn .86 filIqdd:up by election in respect of elecied &&@& .an) b y appdi.fltmqn$ . . in respec%: of ', ap$bin& w&@eis.

' i- (2). D~rj.gg the : .&o& iqtcryening,, b;&eei he date of an orde~ under sub-sectigq, ,(I) . EL& the reconstitution of the Board, the powers and duties of the, Board ,.sha]l be exercise,d and pe,rf0rmed by suchperson and in such manner, as the State Gobernqent! may direct.

~ o r n o v a l if 33. .If the State Government is satisfied that any member. me&ber of the B-oad elected under clause (b) 'bf s~b~section (1) of section 3 or appointed u$#ir clause (4 of that sub-section has-

(a) failed to attond three consecutive meetings of the Board without sufficient causa ;

(b) taken part at a meeting of the bard-'in viola tion of tho provisions of this ;lict the rules made thereunder ; or # . . ,

(c) conducted himself in a manner causing hindrance to the smooth functioning of the Board, it may, after considering the explanation, if any, offered by the member, by an order in writing, specifying the reasons for so doing, removo the member from office.

34. No State-aid shall be given to any industry, pb::~:id except Agriculture save in accordance with the pro- save rn visions of .this Act : accordaue with pro- .:-:Provided that nothing in this Act shl l apply- visions of this Act.

' (I) t o any State-aid given in the form of the grant of a loan to any industrial concern ' , ' , . a s defined in the Siate Finaricial ,Corpora- 63 or 1951 tions , Act, 195 1, through :the agency of the ~i . , . , State Financial Corporatjon in persuance ,I ., .: . , . ., . 4f cIquss (ee) bf sub-s$-ctiori (I) of 'section - 2 5 of that'Act ; or I . , . . . . . .

/ . ' . , . . . (2) i~ any Stateyaid given tp''siek, industry ; or ( 3 ) to any State-aid in t;he*form-a£ a guarantee . : giyen , to - spy, industry whjch is a publio 'iiidertahng ;. or : . . ' , , , . , ,,,- ' * ! '. . , .

(4) to the power of the State ~ohernment to- : , (4-:start .or conduct an- ,hdhstr,y ' &pr experi- . . / ? [ . . - . .

1; " ! ;, ,' , . , " lmental purposes 'hith a view to .-, . , . .. . , . stimul-ati ng industrial develop-meqt ; ;. .r : , I . , < .

: , I ;. . . f - j ! f , , + , , *' !. . ,. 0 ; - b ! f - > C) .ass~st!kn sintlustry 'by giving f r e e - ~ f k h & f s ok OP &.jbur&ble teri-rs, t5e seijyi&esr-df , : ...

1 : , . . . . aovehmedt 6fficials or, experts ei thtir 4 ! ' I ' in ,the c,apacity of advisers or for a liuitred '-period not Weding one year:for ' stardng or conducting such industry ;

, ' (a) assist an industry m mnnect i~~ with . . industrial education or the tr'aiairtg of . . - :

. . . apprentices ; I . . I( ..I .

::;::>: :. - . acidire land unaer .t!le prpyisiqns .df fie ,,,,, . i i ; -. . : Land, Acquisition Act, 1-89,4, 'for a !.,.,. !. : company,; . -

(f) assist a company formed for the purpose of supplying electricity, gas, water or any other service which in the opinion of the State Government is likeIy to prove useful to the public ; or

(g) assist a village industry in any manner which may be determined by the State Government.

Explanation-For the purposes of this section-

(i) "sick industry" shall mean an industry which continuously fails to generate internal surplus and depends for its running on mancia1 aid from outside ;

(ii) an industry shall be deemed to be a pubIic undertaking if it is owned by-

(a) a Government company witbin the meaning of the Companies Act, 1956 ; r of l@jl

(b) any corporation established by law which is owned, controUed or managed by any Government ;

(c) a Grama Panchayat constituted under the Orissa Grama Panchayat Act, 1964 ; %&:

or

(d) A Panchayat Samiti constituted under the Orissa Panchayat Samiti Act, 1959. p,h9id Rtmiskn of 35. If the owner of an industry or any other m-t. person to whom State-aid has been given in any of the forms mentioned in section 4, pays the money recoverable from him under Ghapter 111, or as the case may be, the instalments of rent payable by him under the provisions of Chapter 3;V in accordance with the terms and conditions laid down in this Act and the rules made thereunder, he shall be entitled to a remission on the rate of interest by two per cent.

Exemption of oertain classes or persons.

36. Nothing in clauses (c), (d) and (e) of section 24, or in any other section which the Stas Government may, by notification in the officjaI gazettee, specify, shaU apply to the grant of a loan or the suppIy of machinery on the hire-purchase system involving the advance or expenditure of an amount not exceeding five hundred rupees to a person belonging to the Scheduled Castes or Scheduled Tribes or to a person whose annual income a t the time of the application for State-aid did not exceed one thousand rupees, for the growth and development of small-scale industry or cottage industry.

Explanntion I-"Scheduled Castes" shall have reference to the Scheduled Castes specified in respect of the State of Orissa in the Constitution (Scheduled Castes) Order, 1950.

Explanatiorr li--"Scheduled Tribes" shall have reference to the Scheduled Tribes specified in respect of the State of Orissa in the Constitution (Scheduled Tribes) Order, 1950.

Where this provision sits

ActThe Odisha State-Aid to Industries Act, 1978
Section20
JurisdictionState of Odisha
StatusIn force as published by the source

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