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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 21] NEW DELHI, FRIDAY, APRIL 18, 1975/CHAITRA 28, 1897

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

LOK SABHA

The following Bills were introduced in Lok Sabha on the 18th Apirl,

1975: —

BILL NO. 30 OF 1975

A Bill further to amend the State Financial Corporations Act, 1951.

Be it enacted by Parliament in the Twenty-sixth Year of the Republic

of India as follows: —

1. This Act may be called the State Financial Corporations (Amend- Short title.

ment) Act, 1975.

2. In section 15 of the State Financial Corporations Act, 1951 (herein- Amend- ment of section 15.

after referred to as the principal Act), after sub-section (2), the following sub-sections shall be inserted, namely:—

" (3) The State Government may, if it deems fit, appoint a whole-

time paid Chairman.

(4) The whole-time Chairman shall hold office for four years or until his successor is appointed and shall be eligible for re-appoint- ment.

(5) The whole-time Chairman shall receive such salary and allow- ances, accommodation, travelling allowance and daily allowance, etc., the State Government may determine in consultation with the Re- serve Bank of India.

(313)

(6) The whole-time Chairman shall exercise overall control on the working of the State Financial Corporation including overall con- trol on matters relating to recruitment, promotion^ transfer, leave, etc., of staff, and he shall also inspect the Industrial units Which have been granted accommodation by the Financial' Corporation urfder section 25.

(7) If the Chairman is of opinion that circumstances exist which render it necessary for him to take immediate action in respect of any matter which is within the competence of the Board and that the in- terest of the Financial Corporation may be prejudicially affected if such action is deferred until after the next meeting of the Board, he may, notwithstanding anything contained in this Act, take such action in respect of that matter as he deems necessary and for that purpose he may exercise all powers and do all acts and things which may be exercised by the Board:

Provided that in every such case he shall, as soon as may be after the action is taken, make a written report to the Board con- taining the statement of the action taken and the circumstances under which It was taken.

(8) The whole-time Chairman shall preside over all' th* meetings of the Board including* meetings of share-holders, Annual General meetings, Executive Committee meetings and the meetings of all other Sub-Committees, Advisory Committees, Scrutiny Committees, etc.:

Provided that the Chairman may delegate powers to the Manag- ing Director, Secretary or Directors to preside over the meetings of the Committees if he thinks proper.

3. In section 25 of the principal Act, In clause (g) of sub-section (I), the following further proviso shall be Inserted at the end, namely: —

Amend, mant of section 28.

"Provided further that If the Board feels that an entrepreneur proposing t© start an industrial concern is economically backward, the Board may waive seed money and grant ¹hrr"dtnJ#"|(ef"-'C<**r ^oan required for starting the industrial concern.".

STATEMENT OF OBJECTS AND REASONS

The State Financial Corporations Act was framed in 1951. Now it is completely out of date and cannot cope with the present situation. The industrialists, the educated unemployed persons are coming forward to start Industries, especially when Government's aim is to remove in- equality between haves and have nots. To achieve the desired goal, the seed money now the Financial Corporation is demanding before grant- ing loans is not in accordance with the Government policy to establish a socialistic society in the country. Demand for thirty per cent, seed money is making the poor poorer and the rich richer. This old time, out-dated thinking should go.

The Managing Director alone cannot find time to give justice to the entrepreneurs and his day-to-day administration and office work. Be- sides this, he has to attend to various industrial concerns which are granted loans or advances by the State Financial Corporation. It would, therefore, go a long way to make the working of State Financial Corpora- tions more effective if a whole-time Chairman is appointed by the State Government, if it deems fit.

Hence this Bill.

NEW DELHI; ARJUN SETHI.

fhe 1th March. 1975,

BILL NO. 26 OF 1975

VA Bill to provide for the creation of trust corporations and for -matters

connected therewith.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic-

of India as follows: —

1.(1) This Act may be called the Indian Trusteeship Act, 1975.

(2) It shall extend to the whole of India.

(3) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

Short title, extent and com- mence- ment.

2. In this Act, unless the context otherwise requires,—

Defini- tions.

(a) "business" means and includes industries, plantations, banks, trade, transport or any other¹ activity carried on for profit;

(b) "company" means any public or private limited company re- gistered under the companies Act, 1956, and having a subs- cribed capital of more than a million rupees;

(c) "Panchayat" means the organ of management of a trust cor- poration constituted in the manner provided in this Act;

(d) "trust corporation" means any company the owners whereof have declared themselves to be its trustees In the manner pre- scribed in this Act.

3. The provisions of this Act shall have effect notwithstanding any- thing to the contrary contained in any law for the time being in force.

Provi- sions to have effect notwith- standing any law in force

4. A company may, by a resolution passed by a majority of share- holders present and voting at its general meeting, declare itself to be a trust corporation.

Forma- tion of a trust cor- poration.

Registrar to be in- formed.

5. Immediately after the passing of the resolution referred to in section 4, the managing agent or the manager or the secretary of the company shall notify the same to the Registrar of Joint Stock Companies in whose jurisdiction the head office of the company is situated.

6. The Registrar, on receiving such notice, shall direct the managing agent, the manager or the secretary, as the case may be, to carry on the day to day business of the company as an interim managing trustee.

Manage- ment during interim period.

Pancha- yatof trustee, 7. The Registrar shall, as soon as possible, arrange to take stock of the assets and liabilities of the company and shall constitute a Panch- ayat of trustees consisting of not more than sixteen members, in the following manner, to supervise, control and direct the managing trustee: —

(a) not more than five trustees to be nominated by the share-

holders Of the company at its general meeting;

(b) not more than five trustees to be elected by the trade union of the employees of the company, of whom at least one shall be from the managerial staff, one from the jobbers and the rest from any section of the employees;

(c) five trustees, to be nominated by the Registrar of Joint Stock Companies, as experts, one each from the Planning Commis- sion,' Ministry/Department responsible for industrial develop- ment, internal trade and company law administration, and the Department of Labour of the State Government concerned and a nominee of the Municipal Committee or Corporation of the locality in which the head office of the company Is situated;

(ct) the interim managing trustee shall be an ex-vfficio member

of the Panchayat.

Right of workers to vote.

8. Every worker who has been in the employment of the company for not less than six months shall have the right to vote in the election of the trustees.

9. No representative of workers shall be included in the Panchayat unless he belongs to a united trade union which makes an active de- mand for responsible participation in the management of the trust cor- poration.

Qualifi- cation of credited to bo elected as trus- tes.

Func- tions of the Pan- chayat.

10. The Panchayat shall decide all major questions relating to the management of the business of the trust corporation and, in particular, frame rules for the efficient management of the corporation, approve its annual production plans and annual accounts, construction and develop- ment programme purchases, sales, loans, credits, wages, salaries, bonus to employees and interest, if any, to shareholders.

Profits to be credited to the Govern- ment,

H. The net profits of the trust corporation, after due provision be- ing made for depreciation and provident funds, shall fee credited to the income-tax folio of the Ministry of Finance, Government of India, for being allocated to the different states according to the recommendations of the Finance Commission.

Wages of emplo- yees.

12. The employees of the trust corporation shall not demand any rise in wages which is not commensurate with the earnings of an aver- age villager or the uniform scales of wages determined by the Ministry of Labour, Employment and Rehabilitation of the Government of India.

Payment of bonus.

13. The Panchayat may sanction payment of general bonus or indi- vidual merit "bonus for surpassing the annual production targets fixed for the corporation.

Works Commit- tees.

14. Works Committee of employees shall be formed in every depart- ment of the trust corporation and they shall be entrusted with the job of explaining the decisions of the Panchayat to the employees, mainten- ance of the discipline and execution of welfare schemes of the tr ust corporation.

Manage ing trustee,

15. The Managing agent, the manager or the secretary of the com- pany which has declared itself to be a trust corporation shall become the ex^offijcio managing trustee of the corporation.

16. If the managing agents are a company; or j^flpiv *JMk- company or firm may nominate the first managing trustee of the trust corporation.

Manag- ing trustee to be nominat- ed in certain cases.

17. The first managing trustee shall continue in office for five years or

till he attains the aee of sixty years, whichever is longer.

Term of office of manag- ing trustee.

18. The Managing trustee shall be liable to be removed from office

by the Panchayat for a criminal breach of trust. .

Removal of Mana- ging trustee.

19. (1) The remuneration of the first managing trustee shall be fixed

by a contract between him and the Panchayat.

Remune- ration of Managing trustee.

(2) In case of dispute regarding the remuneration of the first manag- ing trustee, the Registrar of Joint Stock Companies shall fix the same after taking into consideration the standard of life to which the first managing trustee is accustomed.

20. The first managing trustee may recommend a successor to his

office but the final appointment shall be made by the Panchayat.

Successor of mana- ging trustee.

21. The salaries of subsequent managing trustees and other super-

Salaries.

visory or technical staff shall be fixed by the Panchayat.

22. The Panchayat shall elect a Chairman from among its members who shall summon its meetings from lime to time and shall preside over the same.

Chairman of the Pancha- yat of trustees.

23. The Panchayat shall supervise the work of the managing trustee, examine his reports and give him instructions in regard to the day to day administration as also the policies and programme of the corporation.

Pancha- yat to act through the manag- ing trustee.

24. All employees of the trust corporation shall be subject to the

authority of the managing trustee in performing their duties.

Control over em- ployees.

25. The managing trustee shall be empowered to impose discipli

nary penalties on defaulting employees.

Powers of the manag- ing trustee.

26. The accounts of the trust corporation shall be audited by the

Audit.

Comptroller and Auditor-General of India.

Scrutiny of acco- unts.

27. Statements of income and expenditure, balance sheets and state- ments of assets and liabilities shall be placed before a Joint annual gen- eral meeting of all employees of the trust corporation and all share- holders of the company.

28. The Registrar of Joint Stock Companies, on being satisfied on the basis of auditor's report that the affairs of a trust corporation are being conducted in a manner harmful to the interests of the community, may recommend to the Central Government to take over the assets of the corporation and dispose them of in any manner) it deems fit.

Govern- ment to acquire trust corpora- tions in cer- tain cases.

29. The coordination of the industrial or commercial activities of the trust corporation with the national plans for economic development shall be the responsibility of the representative of the Planning Commission on the Panchayat, whose decisions in this regard shall be final.

Co-ordi- nation with national Plans.

Acquired under- takings.

65 of 1951,

SO. Any industry or undertaking whose management has been taken Over by the Government under the Industries (Development and Regu- lation) Act, 1951, and entrusted to the Registrar of Joint Stock Com- panies, may be treated as a trust corporation for the purposes of this Act.

New trust corpora' tions.

31. New trust corporations may be floated ab initio by an individual

entrepreneur investing fifty per cent of the subscribed capital, pro-

vided that the Central or the State Government concerned agrees to

contribute the other half, so, however, that the total equity capital does

not exceed twenty lakh rupees.

Applica- tion of rules.

32. A trust corporation formed under section 31 shall be subject to the same rules as are applicable to any other trust corporation formed under this! Act.

33. The terms agreed to between the managing trustee of a corpora- tion formed under section 31 and the Government in respect of remu- neration shall be valid during the active lifetime of the original mana- ging trustee.

Manag- ing trustee of a new corpora-

tion.

34. (1) The Central Government may, by notification in the Offi-

cial Gazette, make rules for carrying out the purposes of this Act:

Power to make rules.

Provided that the rules made hereunder shall not make any discri- mination between companies owned or managed by Indian and foreign nationals.

(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in ses- sion for a total period of thirty 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, both Houses agree in making any modification in the rule or both Houses agree 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.

STATEMENT OF OBJECTS AND REASONS

The Upanishada have stressed that an Individual should consider

nimself a trustee of whatever assets he possesses.

During the freedom struggle, almost all our national leaders had said that when India became free, all the Capitalists would be given an opportunity of becoming statutory trustees- The Bill seeks to provide such an opportunity to the owners of large companies and proposed ne- cessary provisions for the democratic management with the principles of trusteeship. The provisions of the Bill are intended to usher in peace- fully an era of egalitarianism.

Obviously, egalitarian society is built up not soley on monetary in- centives but on ideas of service to society. It is necessary, therefore, that the worker should be made to feel that he is helping to build t new social order based on Bharatiya values of life. The provisions of this Bill are expected to promote increased productivity by giving the workers a sense of full and intelligent participation in the processes of production, purchase, sales and investments of the enterprise. This Bill ia not a compulsory but a permissive measure enabling the present owners of large companies to transform their existing titles based on absolute rights into trust ownership.

NEW DELHI; ATAL BIHARI VAJPAYEE

The 24tfi OcWbet, 1974.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copy of letter No. 12|40|74-CL. V, dated the 5th March, 1975 from

Shri Bedabrata Barua, Deputy Minister in the Ministry of Law, Justice and Company Affairs to the Secretary-General, Lok Sabha.]

The President, having been informed of the subject matter of the Indian Trusteeship Bill by Shri Atal Bihari Vajpayee, Member Lok Sabha, recommends under clause (1) of article 117 and clause (1) of a^icle 274 of the Constitution the introduction of the Bill and_under clause (3) of article 117 of the Constitution the considerate of the said Bill by the Lok Sabha,

FINANCIAL MEMORANDUM

Clause 31 of the Bill enables public or co-operative institutions to participate in the floating of new trust corporations. The Central or State Governments may, if they choose, invest their funds in such new trust corporations. This would involve recurring expenditure from out of the Consolidated Fund of India which may amount to about rupees twenty lakhs per year.

No non-recurring expenditure is likely to be involved^

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 34 of the Bill confers on the Central Government power to make rules to carry out the purposes of the Bill when enacted. Gene- rally, these rules will relate to matters of detail and procedure. The delegation of legislative power is, therefore, of a normal character.

BILL NO. 8 or 1975

A Bill further to amend the Constitution of India.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:—

1. This Act may be called the Constitution (Amendment) Act, 1973.

Short

title.

2. In the Constitution,—

Amend-

(a) article 284 shall be renumbered as clause (1) thereof;

ment of

•rticlo

284.

(b) in clause (1) as so renumbered,—

(i) in sub-clause (b), tht word "or" shall "be inserted at the

end;

(il) after sub-clause (b), the following tub-clause shall b" in-

serted, namely:—

"(c) the Prime Minister and Chief Ministers for the

purpose ol relief or any other public purpose,";

(c) after IIIUM (I) M so r"nuftib*red, tht Allowing elaiMM shell

be JuMrtod, namtly:—

"(2) The accounts relating to the Prime Minister^ and Chief

Ministers' Relief Funds shall be audited by th* Comptroller and

Auditor-General of India.

(3) The report* of the Comptroller and Auditor-General of

India relating to the accounts of the Prime Minister's Relief Fund

shall be submitted to the President, who shall cause them to be

laid befor* each Hous* of Parliament.

(4) The reports of the Comptroller and Auditor-General of

India relating to the accounts of the Relief Fund of the Chief

Minister of a State shall b" submitted to the Governor or Rajpra-

mukh of tht State, who shall muse them to b* laid before th*

Legislature of the State.".

STATEMENTS OF OBJECTS AND HEASONS

Ever since the foundation of our Republic, the Prime Minister and Chief Ministers of States have been operating large relief funds. A mys- tery surrounds the operation of these funds. Neither the public nor the legislatures are ever taken into confidence in regard to the working of these funds. We do not know how much amount has been received for these funds over a period of 25 years nor do we know how and on what principles moneys from these funds are disbursed.

The Prime Minister and Chief Ministers, like the Speakers and Deputy Speakers of legislatures, are public officers. Article 284 requires that all moneys received by or deposited with the public officers should be put into the public account of India or of the States. However, th© re- lief funds received by or deposited with the Prime Minister and Chief Ministers are not known to have been put in the public account of India or the States respectively- Nor has any audit been carried out of these accounts. This leaves great scope 'for abuse and misapplication, if not¹ outright misappropriation.

This constitutional amendment makes it clear beyond all doubt that the amounts received by or deposited with the Prime Minister and the Chief Ministers for relief or any other public purposes shall be put in the public account of India or the public account of the State, as the case may be. This would prevent misappropriation and misapplication of the public funds.

The amendment Bill makes submission of the audited statements in respect of the receipts into and disbursements from these relief funds to the legislatures mandatory.

NEW DELHI; MADHU LIMAYE.

Th" 3rd February, 197ft.

BILL NO. 31 OP 1975

A Bill to achieve the object of national integration and instill the sense of

nationalism by prohibiting Educational Institutions from bearing

any name or title after a caste, community or religion in the country.

BE it enacted by Parliament In the Twenty-sixth Year of the Republic

of India as follows: —

1. This Act may be called the Nomenclature of the Educational Insti-

title.

tutions Act, 1975.

Definition.

2. In this Act, an "Educational Institution" means a scnool, Inter- mediate and I or Degree College, University or Institute where, afteJ passing prescribed examinations, certificates and degrees are awarded.

3. No Educational Institution named either after a caste, community or religion existing in the country shall be entitled to receive grants, financial aid or patronage of any kind from the local bodies (Corpora- tions, Municipal Boards, Zila Parishads), State Governments, Union Territory Administrations or the Central Government, including any of their allied organisations or Corporations.

Certain Institu- tions not to receive Govern- ment aid.

iudtttu tioaito change the names in

4. After the commencement of this Act, a clear six months' time shall

be given to the concerned management of the Educational Institution and

the Government to take the requisite action to change the names of th*

Educational Institution enabling it to make It entitled to receive th*

grants, financial aid or patronage, as the case may he.

months.

5. If the management of any Educational Institution and the Govern- ment concerned fail to comply with the provisions of this Act within the aforesaid time of six months, the certificates¹ or degrees awarded by iuch institution shall cease to be effective throughout the country.

Corme- quences of violating the pro- visions of Act.

STATEMENT OF OBJECTS AND REASONS

Today most of the young minds of our country are being polluted systematically and gradually by casteism, communalism and religion and they are drifting away from nationalism. To stop this rot and make them a true citizen and national of the country which in turn will ulti- mately achieve national integration and make the country united and strong, it is necessary to prohibit the Educational Institutions from bearing names after a caste, community or religion.

Hence this Bill.

NEW DELHI; RAJDEO SINGH.

The 7th March, 1975.

FINANCIAL MEMORANDUM

Clause 4 of the Bill provides for changing the names of the Educa- tional Institutions in the country. A very small non-recurring expendi- ture of about ten thousand rupees is likely to be involved from t he Con- solidated Fund of India for changing the n a me plates, seals and stationery as very few educational institutions belong to Union Govern- ment bearing such nomenclature.

No recurring expenditure is likely to be involved from the Consolidat-

ed Fund of India.

BILL N O. 29 OF 1975

A Bill further to amend the Constitution of India.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic

of India as follows: —

1. This Act may be called the Constitution (Amendment) Act, 1975. Short

title.

2. For article 120 of the Constitution, the following article shall be

substituted, namely: —

Substitu tion of article 120.

"120. Notwithstanding anything in Part XVII, but subject to the

provisions of article 348, business in Parliament shall be transacted

in any of the languages specified in the Eighth Schedule or In English."

Langu- age to be used in Parlia- ment.

STATEMENT OF OBJECTS AND REASONS

As per article 120 of the Constitution, the business in Parliament is to be transacted only in Hindi or in English; even though Members of Parliament elected from different regions and speaking different languages would like to express themselves adequately in their own mother tongues. The proviso to this article gives the power to the Chairman of the Council or the Speaker of the House or to the Presiding Officer, as the case may be, to permit any Member to speak in his mother tongue provided the Presiding Officer is satisfied that the particular Member cannot adequately express himself either in Hindi or in English. Hence, the right of a Member to speak in his mother tongue in Parliament is left to the discretion of the Presiding Officer. While in practice the system may work to the satisfaction of all, still the written Constitution does not recognise the right of a Member of Parlia- ment to speak in his own mother tongue at the highest forum of demo- cracy in this country. It is pertinent to note here that in many States the legislatures have adopted by law one or other of the languages listed in the Eighth Schedule for use in their States. It is a pity that while a particular language is accepted for transacting business at the State level, it is not recognised for use in Parliament. This Bill seeks to put all the national languages of India contained in the Eighth Schedule to the Constitution on par for business in Parliament.

NEW DELHI;

ERA SEZHIYAN.

The 14th March, 1973.

FINANCIAL MEMORANDUM

In view of clause 2 of the Bill, Reporters and Parliamentary Inter- preters in different languages contained in the Eighth Schedule to the Constitution will have to be appointed. An estimated recurring expen- diture of about rupees five lakhs is likely to be involved from the Con- solidated Fund of India on this account.

A non-recurring expenditure of about rupees one lakh is also likely to

be involved.

S. L. SHAKDHER,

Secretary-Genera I.

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MDJTO ROAD,

NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 75