The SIKKIM INDUSTRIES LICENSING ACT,1982

SIKKIM ~ i I ! ..\ ( GOVERI\IMENT GAZETTE EXTRAORDINARY PUBLISHED BY AUTHORITY No. 45 Gangtok, Thursday, March 17, 1983. GOVERNMENT OF SIKKIM LAW DEPARTMENT Notification No. I/LD/1983. Dated Gangtok, the 14th March, 1983. The following Act of the Sikkim Legislative Assembly having received the assent of the Governor on ~Othday of March, 1983,is hereby published for general information:- THE SIKKIM lNDUSTRIES LICENSING ACT, 1982. (ACT NO. OF 1983) I AN ACT [10.3.1983 ] 0) toprovlde for licences for regulation of industries in Sikkim; for abolition of e,cclusive right in industries'; for industrial progress ofthe State and matters connected therewith or incidental thereto. Be it enacted rby the Legislature of Sikkim in the Thirty-third Year of the Repitbli<'l8f I_!:liaas follows:- I. (1) This Act may be called 'the Sikkim Industries Licensing Act, 1982. Short title, extent (2) It extends to the whole ofSikkim. and commence- 0) Saveasotherwise provided in section 8, this Act shall be deemed to have ment. come into force on the 19th day of June, 1982. In this Act, unless the context otherwise requires,- Definitions. 2. (a) "government" means the Government of Sikkim; (b) "industry" means any establishment for manufacture; (e) "licensing authority" in relation to - (i) a small scale industry means the Department of the Govern- ment dealing with Industries; and (ii~ other industries means the Government. Explanation. - For the purpose of sub,clause (i), a small scale industry shall mean an undertaking having investment in fixed assets in plant and machinery (whether held on ownership terms or by lease or by hire purchase) not exceeding rupees ten lakhs and that of approved ancilliaries upto rupees fifteen lakhs. \, \ 2 (e) "manufacture" means any process for making, fabricating, altering, rej}airing, ornamentinp, finishinp, IXl.ckjn~, oilin!J, washino cleanln« breaking up, demolishin u g or othe 0 rwise tre u ating o c r adapting b' any a,".-J. b c ' le or substance with a view to its use, sale, transport, delivery or dispJal; (f) "not:i fication" means the notification published in theOfficial' Gazette; (g) "owner of an industry" includes a person who has ulti~"\atc c~l;~rol over the affairs of the industry and where the said affairs are substantially entrusted to or carried on by a person such person shall be deemed to be the owner of such industry; (11) "prescribed" means prescribed by rules made under this Act. Licence for esta- 3· (r) No person or authority other than the Government, shall, blishing an indus- after the commencement of this Act, establish or carryon any industry try, in the State of Sikl<im except under and in accordance with a licence issued in that behalf by the licensing authority under this Act. (2) A 1icence under sub-section (I) may contain such conditions and in particular,- (el.) conditions as to pcrcentage of shares to be offered to persons domiciled in Sikkim for subscription ; (b) appointment of Managing Director or Chairman of an industry; (c) minimum employment of persons domiciled in Sikkim; (d) minimum and maximum production; (e) right of the Government to inspect and control quality of goods pro- duced; (f) location of the industry, as may be prescribed. (3) Notwithstanding anything contained in sub-section (2) or the rules made under section 16, the licensing authority may specify on the licence such other conditions as it may deem fit in the interest of deve- lopment of industries in the State and in the interests of persons domi- ciled in Sikkim . Procedure for 4-. (r) An application for licence shall be made to the licensing authority in obtaining Licence, such form as may be prescribed and shall be accompanied by such fees not exceeding rupees ten thousand as may be prescribed. Where before thc commencement of this Act, any person was c~rrying on any industry, such person shall apply for licence under sub-section (I) and. may be entitled to continue to canyon such business without a licence in respect of such industry - . (a) for a period of six months from the date of publication of this Act in the Official Gazette ; or (b) if before the expiry of said six months, such person has made an applicatiOll, for gr,me of licence under this Act for such imlust:ry unrll the final dlsposnl of his 1tpplication, (3) On receipt of the application 1'01'licence, the licensing authority may either grant or refuse a licence : Provided that. no licence u)1c101' this Act shall he granted if the licensil1g authority fOl' reasons to be recorded in writing, isof opinion that granting of such licence shall be against the pulblic interest. Duration and 5· (r) Every licence gr"nted under this Act shall be valid for a period of ten renewal of years from the date on which it is granted and may be renewed asprovi- Licence, ded in this section. An application for renewal of licence shall be made to" the. licensing authority not later than three months before the date of its expiry in such form and shall be accompanied hy such fees not exceeding rupees five thousand as may be prescribed. 6. (r) The licensing authority may vary the conditions subject to which a Variation, SUS- licence has been granted except such of them ashas been prescribed and pension and revo- for that purpose require the holder of licence by notice in writing to cation of licences. deliver up the licence to it within such time asmay be specified in the notice. (2) The licensing authority may, on the application of the holder 0:'licence also vary the conditions of licence except such of them. as Il;\.ve been prescribed. (3) The licensing authority may, by an order in writing, suspend a licence for such period as it thinks fit or revoke a licence,- (a) if it is satisfied that the holder of licence is prohibited by any law for the time being in force to carryon an industry; or (b) if the holder of the licence has violated any of the conditions under which the licence was granted; or (c) if the licensing authority deems it necessary in the interest of public peace or public safety to suspend or revoke a licence; or (d) if the licence was obtained by the suppression of material information or on the basis of wrong information provided by the holder of licence or any other person on his behalf at the time of applying for licence; or (e) if the holder of licence has failed to comply with a notice under sub-section (I) requiring himto deliver-up the licence; or (f) if the holder of licence has been convicted of an offence under the Prevention of Food Adulteration Act, 1954, the Essential Commodities Act, 1955, the Foreign Exchange Regulation Act, 1973, the Essential Commodities (Special Provisions) Act, r98I or any other offence involving moral turpitude. (4) Where the licensing authority makes an order varying the conditions of a licence under sub-section (I) or an order suspending or revoking a licence under sub-section (3), it shall record in writing the reasons therefor and furnish to the holder of the licence on demand and on payment of a fee of rupees fifty a brief statement of the same. (5) A court convicting the holder of a licence of any offence under this Act or the rules made thereunder or of any offence under the Acts referred to in clause (f) of sub-section (3), may also suspend or revoke alicence: Provided that if the conviction is set aside on appeal or other- wise, the suspension or revocation shall become void. (6) An order of suspension or revocation under sub-secton (5) may also be made by an appellate court or by the High Court. NotWithstanding anything contained in any law, order, custom, promise or Abolition of 7· contract to the contrary, no owner of an industry in Sikkim shall have an exclu- exclusive right. sive right to manufacture any article for any period within the State of Sikkim. Any person, company, body corporate or firm haVing exclusive right to carryon any industry or to manufacture any article (to the exclusion of others) shall cease to have such right from the date of commencement of this Act. 8. The Notification No. 2/TIC, dated the rSth February, 1974 relating to Incentive Repeal of notifi- for Growing industries in Sikkim except paragraph (v) (b) and paragraph (vii) cation No. (a) and (b) thereof (relating to Income Tax and Participation by the Government Z/TIC. of Sikkim and Sikkimese people) is hereby repealed. This section shall b" deemed to have come into force with effect from the 24th day of May, 1976. Every licence holder shall submit to the licensing authority returns in respect Sul!nnissuon of of such statistics and other information at such intervals as the Government Returns. may, from time to time, require. \. 4 , Licence holder I0 (r ) Every licence holder shall deposit with the licensing authority such to deposit cer- amount in such instalments as the said authority, m::lyhaving regard to the nature tian amount of the industrv and the number of persons employed therein, specify. with Government. The amount also deposited may be utili sed by the licensing authority for payment to the employees of the industry, compensation for loss of \. , employment before the expiry of the period of licence. \ Incentives to cer- II. For promotion and development of traditional and small-scale in indi- tain industries. genous industries using local materials, the Government may grant such incentives as it may think fit in each case. Offences by J2. (r) Where an ofFence under this Act or rules made thereunder has been companies cornmitteed 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 businces of the company, as well as the company, shal! be (\cemed to be guilty of the offence and shall be liable to be pro- cccded ~gainst and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liahle to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due lliligcnce to prevent the commission of such offence. (2) Notwithstand.ing anything contained in sub-section (I), where any offence under this Act has been committed. by a company and it is proved that the offence has been committeed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, sccretary or other officer of the compar~, such director, manager, secre- tary or other officer shall also be deemed to be gUilty of that offence and shall be liable to he proceeded against and punished accordingly. Explanation> For the purposes of this section,- (a) "company" means any body corporate and includes a firm or other association of incliv.duals, and (b) "director" in relation to a firm means a partner in the firm. Protection of r3. No suit or other legal proceeding shall lie against the Government or any officer action in good or author-ity empowered by the Government for anything which is in good faith faith. clone or intended to be done under this Act or rules made thereunder. Bar to suits. 14. No suit or other proceedings shall lie against the Government or its officers for any damage caused or likely to he caused by any Act that may be enac- ted, extended and enforced hy a competent legislature in this State and has the effect of amending, "dding to, varying, altering or repealing of any of the provisions of this Act. Penalties. 15. Every person who contravenes any of the provisions of this Aet or rules made there- under shall, on conviction, be liable to be punished with imprisonment which may extend to six months or to fine or with both. Power to make J6. The State Government may, by notification, make rules for carrying out rules. the purF,oses of this Act. . (2) In particular, and without prejudice, to the foregoing powers, sl;ch rules IllZlyprovide for all or any of the following matters, namelv e- ! 5 (a) the form of application for grant of licence and renewal thereof; (b) the. fees payable for [;rant and renewal of licence; (c) the. condition subject to which a licence may be granted; (d) anyother matter which is rer]l,ircrl to D\::·01' m".), be prescribed' / Repeal and The Sikkim Industries Licensing Ordinance, 1982 (I of 1982) is saving. hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed, shall be deemed to have been done or taken under the corresponding provisions of this Act. B. R. PRADHAN, Secretary to the Government of Sikkim. Law Department, F. No. 16(167)LDj82. PRINTED AT THE SIKKIM GOVERNMENT PRESS, GANGTOK.