THE KERALA HANDLOOM WORKERS' WELFARE FUND [1] Complete Act - Bare Act

An Act to provide for the constitution of a fund to grant relief to, to promote the welfare of, and to pay pension to handloom workers and self-employed persons in Handloom Industry in the State of Kerala .

Preamble .-WHEREAS it is expedient to provide for the constitution of fund to grant relief to, to promote the welfare of, and to pay pension to handloom workers and self-employed persons in handloom industry in the State of Kerala and for certain other matters incidental thereto;

BE it enacted in the Thirty-ninth Year of the Republic of India as follows:-

1. Short title, extent and commencement.-(1) This Act may be called the Kerala Handloom Workers' Welfare Fund Act, 1989.

(a) It extends to the whole of the State of Kerala

(b) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

2. Definitions.- In this Act, unless the context otherwise requires,-

(a) "Board" means the Kerala Handloom Workers' Welfare Fund Board constituted under section 6;

(b) "Chief Executive Officer" means the Chief Executive Officer appointed under sub- section (1) of section 9;

(c) "Contribution" means the sum of money payable to the fund under section 4;

(d) "Dealer" means any person who is engaged in the business of purchase, sale or storage for sale of yearn of handloom cloth or any other handloom products

(e) "Director of Handlooms" means the Director of Handlooms for the State of Kerala ;

(f) "employer" means any person who directly employs, whether on behalf of himself or for any other person, one or more handloom workers to do any work in connection with the various processes in handloom industry;

(g) "Family" means wife or husband, minor sons and unmarried daughters of the handloom worker or self employed person and father and mother who are solely dependent upon the handloom worker or self employed person;

(h) "Fund" means the Handloom Workers' Welfare Fund established under section 3 and the scheme:

(i) "Handloom products" means all types of cloth woven in handlooms out of cotton yearn, polyster yarn, silk yarn or any other blended yarn

(j) "Handloom Worker" means any person who is employed for wages to do any work in connection with the various processes in handloom Industry and who gets his wages directly or indirectly from the employer, dealer or producer of handloom products and includes any person employed by or through a contractor or through an agent and depends mainly on handloom industry for his livelihood and any other person engaged in handloom industry whom the Government may by notification in the Gazette, from time to time declare to be a handloom worker for the purposes of this Act;

Explanation .-If any question arises as to whether a person is or is not a handloom worker for the purposes of this Act, the question shall be referred to the Government or Director of Handlooms or an officer authorized by the Government in this behalf, whose decision thereon shall be final.

( Gazette Notification dated 12-7-1990

Vide G.O.(P) No. 59/90/LBR dated 12 July 1990, Government of Kerala have declared the carpenters, ironing workers, tailors and card cutters who are permanent workers in handloom factories and firms as handloom workers.)

(k) "Member" means a member of the Fund;

(l) "Person" includes a company, a firm, an association of individuals or a Co- operative Society registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969);

(m) "Prescribed" means prescribed by rules made under this Act;

(n) "Process in handloom industry" means winding, warping, sizing, weaving and other works like gocting and dyeing;

(o) "Producer of handloom products" means a person who carries on the business of processing handloom products for export or for internal consumption" ;

(p) "Schedule" means the schedule to this Act;

(q) "Scheme" means a Scheme framed under this Act;

(r) "Self-Employed Person" means a person who is engaged in the production of cloth by actually weaving in handloom and includes winder, warper, sizer and any other person engaged in works like gocting and dyeing who depends mainly on handloom industry for his livelihood; but does not include a person who owns more than two looms;

(s) "Yarn" means cotton yarn, silk yarn, polyster fibre or any other blended fibre which could be used for weaving in handloom industry;

(t) "Year" means the financial year.

3. Handloom Workers' Welfare Fund Scheme .-(1) The Government may, by notification in the Gazette, frame a scheme to be called "The Kerala Handloom Workers' Welfare Fund Scheme" for the establishment of a Fund under this Act for the welfare of the handloom workers and self-employed persons in the handloom industry and there shall be established as soon as may be after ;the framing of the scheme, a Fund in accordance with the provisions of this Act and the Scheme.

(2) There shall be credited to the Fund.-

(a) The contributions specified under section 4;

(b) The amount borrowed by the Board under section 10;

(c) Damages realized under section 19;

(d) Grants or loans or advances made by the Government of India or the State Government or any institution;

(e) Any donation from whatever source;

(f) Any amount raised by the Board from other sources to augment the resources of the Board;

(g) Fee levied under the scheme;

(h) Any other amount which, under the provisions of the scheme, shall be credited to the Fund.

(3) The Fund shall vest in, and be administered by the Board constituted under section 6

(4) The Fund may be utilised for all or any of the following purposes, namely:-

(a) For payment of pension:-

(i) To a member who is unable to work due to infirmity or has completed the age of sixty years; and

(ii) To a person who, before the commencement of this Act was a handloom worker or a self-employed person and passed the age of sixty years and who suffers from permanent disablement or is out of employment;

(b) For payment of family pension;

(c) For payment of financial assistance to a member who suffers from permanent disablement;

(d) For payment of loans or grants to a member to meet expenses for the marriage of children or for expenses in connection with the death of dependent or for expenses for construction or maintenance of house;

(e) To provide for maternity benefits to women workers engaged in handloom industry;

(f) To provide for the handloom workers, self-employed person and members of their families medical facilities and educational facilities including higher education;

(g) For any other purpose specified in the scheme.

(5) Subject to the provisions of this Act, the scheme framed under sub-section (1) may provide for all or any of the matters specified in sub-section (4) and in the schedule.

(6) The scheme shall be laid, as soon as may be, after it is framed, 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 scheme, the scheme shall thereafter have effect only in such modified form; so however that, any such modification shall be without prejudice to the validity of anything previously done under the scheme.

4. Contribution to the Fund .
[2] ("(1) Every Handloom Workers shall contribute three rupees (Rs.3) per month and every self employed person shall contribute five rupees (Rs. 5) per month to the Fund.

(2) Every dealer shall contribute to the Fund, every year on the basis of his total annual sale proceeds at the rates specified in the schedule below:-

SCHEDULE

Provided that while calculating contributing in the revised rate, the amount of contributionalready paid by dealers in the pre-revised rate before the commencement of the KeralaHandloom Workers' Welfare Fund (Amendment) Act, 2001 shall be adjusted.

(3) Every employer and producer of Handloom products including Co-operative Society shall contribute to the Fund every year twice the amount of the amount contributed by the handloom workers and self employed persons in a year.

(4) The Government shall contribute to the Fund every year an amount equal to the contribution paid by handloom workers and self employed persons in a year.

(4a) Notwithstanding anything contained in sub-sections (1), (2) and (3) the Government may, in every year after the coming into the force of this Amendment Act, by Notification in the Gazette revise the rates of contribution specified in the said sub-sections considering the expenses in implementing the project, and thereafter every handloom workers or self employed persons or dealer or employer or producer of handloom products including co-operative society shall be liable to pay contribution according to the revised rate.

(4b) Every notification under sub-section (4a) shall be laid, as soon as may be after it is issued, 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 notification or decides that the notification should not be made, the notification 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 the notifications.")

(5) The contribution shall be paid to the Chief Executive Officer or to any officer of the Board authorized by the Board in this behalf.

(6) Where the amount of contribution payable under this Act involves a fraction of a rupee, the scheme may provide for the rounding of such fraction to the nearest rupee.

5 . Modification of the Scheme .-(1) The Government may by notification in the Gazette, add to amend or vary the scheme framed under this Act.

(2) Every notification under sub-section (1) shall be laid as soon as may be, after it is issued , 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 agrees in making any modification in the notification or decides that the notification should not be issued, the notification 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 notification.

6. Constitution of Board .-(1) The Government may by notification in the Gazette, constitute, with effect from such date as may be specified therein a Board to be called, "The Kerala Handloom Workers' Welfare Fund Board" for the administration of the Fund and to supervise or carry out the activities finance from the Fund.

(2) The Board shall be a body corporate by the name aforesaid, having perpetual Succession and common seal and shall by the said name sue and be sued.

(3) The Board shall consist of fifteen Directors nominated by Government as hereinafter provided;-

(i) Five persons representing the handloom workers and self employed persons.;

(ii) Five persons from among the dealers, employers and producers of handloom products;

(iii) Five members representing the Government.

(4) One of the Directors of the Board shall be appointed by the Government to be its Chairman.

(5) The Government shall publish in the Gazette the names of the Chairman and Directors of the Board.

(6) The Board shall administer the Fund vested in it in such manner as may be specified in the scheme.

(7) The Board may with the previous approval of the Government, delegate to the Chairman or to any Director of the Board or to the Chief Executive Officer such of its powers and functions under this Act, or the scheme as it may consider necessary for the efficient administration of the Fund, subject to such restrictions and conditions, if any, as it may specify.

7. Term of Office of the Directors .-(1) A Director appointed under sub-section (3) of section 6 shall hold office for a period of three years.

(2) Notwithstanding anything contained in section 8, the Government may; at any time, for reasons to be recorded in writing remove from office any Director of the Board after giving him a reasonable opportunity of showing cause against the proposed removal.

Provided that it shall not be necessary to record in writing, the reason for removal or to give an opportunity of showing cause against the proposed removal, if the Government are of the opinion that it is not expedient, in the public interest, to record the reasons in writing or to give such opportunity.

(3) Any Director may resign his membership by giving notice in writing to the Government, but shall continue in office until his resignation is accepted by the Government.

8. Removal of non-official Directors .-(1) The Government, may, by notification in the Gazette, remove any non-official Director of the Board from office;

(a) If he has, without the permission of the Board, been absent from the meeting of the Board for three consecutive meetings:

Provided however, that such absence may be condoned by the Board before the publication of the notification in the Gazette;

(b) If in the opinion of the Government, he is unsuitable or has become incapable of acting as a Director or has so abused his position as a Director as to render his continuance as such Director detrimental to the public interest:

Provided that before removing a Director under this sub-section, he shall be given a reasonable opportunity to show cause why he should not be removed.

(2) A non-official Director of the Board removed under clause (a) of sub-section (1), shall be disqualified for re-appointment as a Director of the Board for a period of three years from the date of his removal unless otherwise ordered by the Government.

(3) A non-official Director of the Board removed under clause (b) of sub-section (1) shall not be eligible for re-appointment until he is declared by an order of the Government to be no longer ineligible.

9. Appointment of officers and staff -(1) The Government may appointment a Chief Executive Officer and such number of other officers and staff as they consider necessary to assist the Board in the discharge of its functions and duties under this Act.

(2) Subject to the provisions of sub-section (3), the method of appointment, salary and allowances, discipline and other conditions of service of the Chief Executive Officer and the other officers and staff appointed under sub-section (1) shall be such as may be prescribed.

(3) In the case of posts in the service under the Board to which appointment is made by direct recruitment, the Government shall mutatis mutandis observe the provisions of clauses (a), (b) and (c) of rule 14 and the provisions of rules 15, 16,17 and 17A of the Kerala State and Subordinate Service Rules, 1958, as amended from time to time.

10. Power of the Board to borrow .-The Board may, from time to time, with the previous approval of the Government and subject to such terms and conditions as my be specified by the Government, borrow money for the purposes of the scheme.

11. Determination of amount due .-(1) The Chief Executive Officer or an officer not below the rank of a
[3] (Assistant Labour Officer) authorised by the Board in this behalf may, after making such enquiry as may be necessary and after giving every person liable to pay contribution under section 4, an opportunity to be heard, by order determine the amount due from every employer or dealer or producer of handloom products under the provisions of this Act or the scheme.

(2) The officer conducting the enquiry under sub section (1) shall for the purposes of such enquiry, have the same powers as are vested in a civil court while trying a suit under the Code of Civil Procedure, 1908 (Central Act 5 of 1908) in respect of the following matters, namely:-

(i) enforcing the attendance of any person or examining him on oath;

(ii) requiring the discovery and production of documents;

(iii) receiving evidence on affidavits;

(iv) issuing commissions for the examination of witnesses.

(3) Any enquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of 1860) and for the purpose of section 196, of the said code.

(4) Any person aggrieved by an order under sub-section (1) may within thirty days from the date of receipt of the order prefer an appeal to the Labour Commissioner or an officer not below the rank of a District Labour Officer authorized by him in this behalf and the Labour Commissioner or the officer authorised by him may, after making such enquiry, pass such orders thereon as he thinks fit.

(5) The Government may, either suo motu or on an application of the aggrieved person, call for the records of any proceedings taken by the Labour Commissioner or the officer authorised by him under sub-section (4) and make such enquiry and pass such orders, as they deem fit:Provided that an application for revision under this sub-section shall be made within sixty days from the date on which the order was communicated to the applicant:Provided further that no order shall be passed under this sub-section without giving the person who may be effected thereby, an opportunity to be heard.

12. Provisional assessment and collection of contribution .-

(1) Every employer or dealer or producer of handloom products liable to pay contribution under section 4 shall, pending determination of the amount due from him, under section 11, pay on or before the 5 th day of each month an amount equivalent to one-twelfthof the amount payable annually by him according to the latest determination under the said section.

(2) The contribution due from a handloom worker or a self-employed person for a month shall become payable on or before the 5 th day of the succeeding month.

(3) Where the contribution is not paid on or before the due date, the Chief Executive Officer or any officer of the Board authorized by it in this behalf, shall issue a notice to the defaulter showing the amount in arrears, and if the amount is not paid within fifteen days of the receipt of such notice, it may be recovered in the same manner as an arrear of public revenue due on land.

(4) The amount paid under sub-section (1) by an employer or dealer or a producer of handloom products for a year shall be adjusted against the amount determined under section 11 for that year.

13. Mode of recovery of money due from handloom workers, self-employed persons, employers, dealers and producers of handloom products.- Any amount due from the handloom workers, self-employed persons, employers, dealers and producers of handloom products in pursuance of the provisions of this Act or the scheme may, if the amount is in arrears, be recovered in the same manner as an arrear of public revenue due on land.

14. Priority of payment of contribution over other debts :-Where any employer or dealer or producer of handloom products liable to pay contribution under section 4 is adjudicated as insolvent or in case such employer, dealer or producer of handloom products is a company, an order of winding up is made, the amount due from such employer or dealer or producer of handloom products under this Act or the scheme shall, where the liability therefore has accrued before the order of adjudication or winding up is made, be deemed to be included among the debts which under section 64 of the Insolvency Act, 1955(2 of 195) or under section 530 of the Companies Act, 1956 (Central Act 1 of 1956) are to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of the company being wound up, as the case ma be.

15. Employer not to reduce wages etc .-No employer or dealer or producer of handloom products shall by reason only of his liability for the payment of any contribution to the Fund, reduce whether directly or indirectly the wages of any handloom worker to whom the scheme applies or the total quantum of benefits to which the handloom worker is entitled under the terms of his employment express or implied.

16. Directors of Board etc . to be public servants .-Every Director of the Board, the Chief Executive Officer and other officers and members of the staff of the Board appointed under sub-section (1) of section 9 shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (Central Act 45 of 1860).

17 . Penalty .-(1) Whoever, for the purpose of avoiding any payment to be made by him under this Act, or under the scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both.

(2) Whoever, contravenes or makes default in complying with any of the provisions of this Act or of the scheme shall, if no other penalty is elsewhere provided by or under this Act for such contravention or non-compliance be punishable with imprisonment for a term which may extend to two months or with fine which may extend to four hundred rupees, or with both.

(3) No court inferior to that of a Judicial Magistrate of the First Class shall try any offence punishable under this Act.

(4) No court shall take cognisance of any offence punishable under this Act except on a report in writing of the fact constituting such offence made with the previous sanction of the Chief Executive Officer.

18. Offences by companies .-(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any officer of the company, such officer of the company shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation .- For the purpose of this section.-

(i) "Company" means any body corporate and includes a firm, Co-operative Society or other association of individuals;

(ii) "Officer of the Company" means the Managing Director, Director, Secretary, Treasurer of Manager of the company and includes the office bearers of a firm, Co-operative Society or other association of individuals.

19. Power to recover damages .-Where any person makes default in the payment of any contribution to the fund under this Act or the scheme, the Board may recover from him damages not exceeding twenty-five percent of the amount of arrear as it may think fit to impose.

20. Protection for acts done in good faith .-No suit or other legal proceedings shall lie against any Director of the Board or any other person in respect of anything which is in good faith done or intended to be done under this Act or under the scheme.

21. Directions by Government .-(1) The Government may after consultation with the Board, give to the Board general directions to be followed by the Board.

(2) In the exercise of the powers and performance of its duties under this Act, the Board shall not depart from any general directions issued under sub-section (1), except with the previous permission of the Government.

22. Power to order inquiry .-(1) The Government may, at any time, appoint an officer not below the rank of a Joint Secretary to Government to inquire into the working of the Board and to submit a report to the Government.

(2) The Board shall give the person so appointed, all facilities for the proper conduct of the inquiry and furnish to him such documents, accounts and information in the possession of the Boa rd as he may require.

23. Power to supersede Board .-(1) If, on consideration of the report under section 22 or otherwise, the Government are of opinion that the Board has persistently made default in the performance of the duties imposed on it by or under the provisions of this Act or the scheme or has exceeded or abused its powers, the Government may, by notification in the Gazette, supersede the Board for such period not exceeding six months as may be specified in the notification.

Provided that before issuing a notification under this sub-section, the Government shall give a reasonable opportunity to the Board to show cause why it should not be superseded and shall consider the explanations and objections, of any, if the Board.

(2) Upon the publication of a notification under sub-section (1),-

(a) all the Directors of the Board shall, as from the date of such publication, shall be deemed to have vacated their offices as such Directors;

(b) all the powers and duties which may be exercised or performed by the Board shall, during the period of supersession be exercised or performed by such officer or officers as may be specified in the notification;

(c) all funds and other properties vested in the Board shall, during the period of supersession, vest in the Government.

(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Government shall reconstitute the Board in the manner provided in section 6.

24. Audit of accounts of the Boards .-(1) The Board shall appoint auditors to audit the accounts of the Board.

(2) The accounts of the Board shall be examined and audited once in every year by such auditors.

25. Annual report and audited statement of accounts .-(1) The annual report of the Board shall be prepared under the direction of the Board and after approval by the Board, a copy of the report together with an audited statement of accounts shall be submitted to Government before the end of July every year.

(2) The Government shall, as soon as the annual report is received, cause the same together with the audited statement of accounts to be laid on the table on the Legislative assembly.

26. Bar of Jurisdiction of Civil Courts .- No civil court shall have jurisdiction to settle, decide or deal with any question or to determine any matter which is by or under this Act or the scheme require to be settled, decided or dealt with or to be determined by the Government or the Board or the Labour Commissioner or any officer authorised by the Labour Commissioner or the Chief Executive Officer or any officer authorised by the Board.

27. Special provisions for transfer of accumulation from Welfare Funds established by any Act or agreement.- Notwithstanding anything contained in any other law for the time being in force on the date of coming into force of this Act the sums standing to the credit of a member in any welfare fund established either by any law or agreement shall stand transferred to and credited to the Fund established under this Act and the liability of such member to pay contribution to such welfare funds shall cease from such date.

28 . Power to make rules .-(1) The Government may, by notification in the Gazette, make rules either prospectively or retrospectively for the purpose of carrying into effect the provisions 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 from 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.

29. Repeal.- The Kerala Handloom Workers' Welfare Fund Ordinance, 1988 (14 of 1988), is hereby repealed.

(
See
section 3 (5) )

Matters for which provision may be made in the scheme.-

1. Registration of handloom workers, self-employed persons, employers, dealers and producers of handloom products.

2. The time and manner in which contribution shall be made to the fund by handloom workers, self-employed persons, employers, dealers, producers of handloom products and by, or on behalf of the handloom workers, the contribution which a handloom worker and self-employed person may make under section 4 and the manner in which contribution may be recovered.

3. The manner in which the handloom worker's contribution from different sectors may be recovered by the employers.

4. The constitution of any Committee for assisting the Board.

5. The manner win which accounts shall be kept, the investment of moneys belonging to the Fund in accordance with any directions issued or conditions specified by the Government, the preparation of the budget, the audit of accounts and the submission of reports to the Government.

6. The conditions under which withdrawals from the Fund may be permitted and any deduction or forfeiture may be made and maximum amount of such deduction or forfeiture.

7. The form in which a member shall furnish particulars about himself and his family whenever required.

8. The nomination of a person to receive any family pension of a member on his death and the cancellation or variation of such nomination.

9. The registers and records to be maintained with respect to handloom workers and the returns to be furnished by the employers.

10. The form or design of any identity card for the purpose of identifying any member of the Fund and for issue, custody and replacement thereof.

11. The fees to be levied for any of the purposes specified in the schedule.

12. The further powers, if any, which may be exercised by the officers appointed under the Act.

13. The manner in which the sums transferred under section 27 to be brought and credited to the Fund.

14. The purposes for which the Fund may be utilised for the welfare of handloom workers, self-employed persons or their dependents.

15. The procedure for defraying the expenditure incurred in the administration of the Fund.

16. The procedure for paying pension, family pension, grants or advances from the Fund.

17. Any other matter which is to be provided for in the scheme or which may be necessary or proper for the purpose of implementing the scheme.