Bare Acts Page 114

Central Sales Tax Act

November 30, 2014

Section 1. Short title, extent, and commencement.

ACT NO. 74 OF 1956

[21st December, 1956.]

An Act to formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import into or export from India, to provide for the levy, collection and distribution of taxes on sales of goods in the course of inter-State trade or commerce and to declare certain goods to be of special importance in inter-State trade or commerce and specify the restrictions and conditions to which State laws imposing taxes on the sale or purchase of such goods of special importance shall be subject.

(1) This Act may be called the Central Sales Tax Act, 1956.

(2) It extends to the whole of India ¹[***]

(3) It shall come into force on such date² as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

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1. The words “except the State of Jammu and Kashmir” omitted by Act 5 of 1958, sec. 2 (w.e.f. 13-3-1958).

2. Came into force on 5-1-1957, all sections except section 15, vide S.R.O. 78, dated 4th January, 1957, published in the Gazette of India, Extra., 1957, Pt. II, Sec. 3, p. 57. Section 15 came into force on 1-10-1958, vide G.S.R. 897, dated 23rd September, 1958, published in the Gazette of India, Extra., 1958, Pt. II, Sec. 3 (i), p. 476.

Section 2. DEFINITIONS.

In this Act, unless the context otherwise requires,—

(a) “appropriate State” means—

(i) in relation to a dealer who has one or more places of business situated in the same State, that State;

(ii) in relation to a dealer who has ¹[***] places of business situated in different States, every such State with respect to the place or places of business situated within its territory;

²[***]

³[(aa) “business” includes—

(i) any trade, commerce or manufacture, or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern; and

(ii) any transaction in connection with or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern;

(ab) “crossing the customs frontiers of India” means crossing in the limits of the area of a customs station in which imported goods or export goods are ordinarily kept before clearance by customs authorities.

Explanation.—For the purposes of this clause, “customs station” and “customs authorities” shall have the same meanings as in the Customs Act, 1962 (52 of 1962);]

⁴[(b) “dealer” means any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash or for deferred payment, or for commission remuneration or other valuable consideration, and includes—

(i) a local authority, a body corporate, a company, any co-operative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business;

(ii) a factor, broker, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing, goods belonging to any principal whether disclosed or not; and

(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal.

Explanation 1.—Every person who acts as an agent, in any State, of a dealer residing outside that State and buys, sells, supplies, or distributes, goods in the State or acts on behalf of such dealer as—

(i) a mercantile agent as defined in the Sale of Goods Act, 1930
(3 of 1930), or

(ii) an agent for handling of goods or documents of title relating to goods, or

(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment,

and every local branch or office in a State of a firm registered outside that State or a company or other body corporate, the principal office or headquarters whereof is outside that State, shall be deemed to be a dealer for the purposes of this Act.

Explanation 2.—A Government which, whether or not in the course of business, buys, sells, supplies or distributes, goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall except in relation to any sale, supply or distribution of surplus, un-serviceable or old stores or materials or waste products or obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the purposes of this Act;]

(d) “goods” includes all materials, articles, commodities and all other kinds of movable property, but does not include 5[newspapers] actionable claims, stocks, shares and securities.

⁵[(dd) “place of business” includes—

(i) in any case where a dealer carries on business through an agent by (whatever name called), the place of business of such agent;

(ii) a warehouse, godown or other place where a dealer stores his goods; and

(iii) a place where a dealer keeps his books of account;

(e) “prescribed” means prescribed by rules made under this Act;

(f) “registered dealer” means a dealer who is registered under section 7;

⁶[(g) “sale”, with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or deferred payment or for any other valuable consideration, and includes,—

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(v) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(vi) a supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration,

but does not include a mortgage or hypothecation of or a charge or pledge on goods;]

(h) “sale price” means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged:

⁷[Provided that in the case of a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, the sale price of such goods shall be determined in the prescribed manner by making such deduction from the total consideration for the works contract as may be prescribed and such price shall be deemed to be the sale price for the purpose of this clause;]

⁸[(i) “sales tax law” means any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf and includes value added tax law, and “general sales tax law” means any law for the time being in force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods generally and includes value added tax law;]

(j) “turnover” used in relation to any dealer liable to tax under this Act means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period 9[and determined in accordance with the provisions of this Act and the rules made thereunder];

⁷[(ja) “works contract” means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property;]

(k) “year”, in relation to a dealer, means the year applicable in relation to him under the general sales tax law of the appropriate State, and where there is no such year applicable, the financial year

Sale price

The definition of ‘sale price’ is in two parts. The first part says that ‘sale price’ means the amount payable to a dealer as consideration for the sale of any goods. The second part which is an inclusive clause, includes any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in case where such cost is separately charged. Where the cost of freight is part of the price, it would fall within the first part of the definition and to such a case, the exclusion clause in the second part has no application. So it is exigible tax; Hindustan Sugar Mills Ltd. v. State of Rajasthan, (1979) 43 STC 13 (SC).

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1. The words “one or more” omitted by Act 31 of 1958, sec. 2 (w.e.f. 1-10-1958).

2. Explanation omitted by Act 31 of 1958, sec. 2 (w.e.f. 1-10-1958).

3. Ins. by Act 103 of 1976, sec. 2 (w.e.f. 7-9-1976).

4. Subs, by Act 103 of 1976, sec. 2, for clause (b) (w.e.f. 7-9-1976).

5. Ins. by Act 31 of 1958, sec. 2 (w.e.f. 1-10-1958).

6. Subs. by Act 20 of 2002, sec. 150, for clause (g) (w.e.f. 11-5-2002).

7. Ins. by Act 18 of 2005, sec. 89 (w.e.f. 13-5-2005).

8. Subs.by Act 18 of 2005, sec. 89, for clause (i) (w.e.f. 13-5-2005). Clause (i), before substitution, stood as under:

‘(i) “sales tax law” means any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf, and “general sales tax law” means the law for the time being in force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods generally;’.

9. Subs. by Act 28 of 1969, sec. 2, for “and determined in the prescribed manner” (w.r.e.f. 5-1-1957).

Section 3. WHEN IS A SALE OR PURCHASE OF GOODS SAID TO TAKE PLACE IN THE COURSE OF INTER-STATE TRADE OR COMMERCE.

A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase, -

(a) occasions the movement of goods from one State to another; or

(b) is effected by a transfer of documents of title to the goods during their movement from one State to another.

Explanation 1 : Where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purposes of clause

(b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee.

Explanation 2 : Where the movement of goods commences and terminates in the same State it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State.

Section 4. WHEN IS A SALE OR PURCHASE OF GOODS SAID TO TAKE PLACE OUTSIDE A STATE.

(1) Subject to the provisions contained in section 3, when a sale or purchase of goods is determined in accordance with sub-section (2) to take place inside a State, such sale or purchase shall be deemed to have taken place outside all other States.

(2) A sale or purchase of goods shall be deemed to take place inside a State, if the goods are within the State—

(a) in the case of specific or ascertained goods, at the time the contract of sale is made; and

(b) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such appropriation.

Explanation.—Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this sub-section shall apply as if there were separate contracts in respect of the goods at each of such places.

Section 5. WHEN IS A SALE OR PURCHASE OF GOODS SAID TO TAKE PLACE IN THE COURSE OF IMPORT OR EXPORT.

(1) A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India.

(2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India.

¹[(3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export.]

²[(4) The provisions of sub-section (3) shall not apply to any sale or purchase of goods unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the exporter to whom the goods are sold in a prescribed form obtained from the prescribed authority.

(5) Notwithstanding anything contained in sub-section (1), if any designated Indian carrier purchases Aviation Turbine Fuel for the purposess of its international flight, such purchase shall be deemed to take place in the course of the export of goods out of the territory of India.

Explanation.—For the purposes of this sub-section, “designated Indian carrier” means any carrier which the Central Government may, by notification in the Official Gazette, specify in this behalf.]

Sale in the course of import

When the bill of lading is endorsed while the consignment is still on the high seas and the sale was in the course of import, as it was effected by transfer of documents to the goods before they had crossed the limits of the customs. The sale was covered by the latter part of section 5 (2) read with section 2 (ab) and as it was in course of import hence not liable to Sales Tax; Minerals and Metals Trading Corporation of India Ltd. v. Sales Tax Officer, (1998) 111 STC 434.

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1. Ins. by Act 103 of 1976, sec. 3 (w.r.e.f. 1-4-1976).

2. Ins. by Act 18 of 2005, sec. 90 (w.e.f. 13-5-2005).

Section 6. LIABILITY TO TAX ON INTER-STATE SALES.

¹[(1)] Subject to the other provisions contained in this Act, every dealer shall, with effect from such date² as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales ³[of goods other than electrical energy] effected by him in the course of inter-State trade or commerce during any year on and from the date so notified:

⁴[Provided that a dealer shall not be liable to pay tax under this Act on any sale of goods which, in accordance with the provisions of sub-section (3) of section 5 is a sale in the course of export of those goods out of the territory of India.]

⁵[(1A) A dealer shall be liable to pay tax under this Act on a sale of any goods effected by him in the course of inter-State trade or commerce notwithstanding that no tax would have been leviable (whether on the seller or the purchaser) under the sales tax law of the appropriate State if that sale had taken place inside that State.]

⁶[(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods to a registered dealer, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this Act:

Provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit,—

(a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and

(b) if the subsequent sale is made to a registered dealer, a declaration referred to in sub-section (4) of section 8:

Provided further that it shall not be necessary to furnish the declaration referred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods if,—

(a) the sale or purchase of such goods is, under the sales tax law of the appropriate State exempt from tax generally or is subject to tax generally at a rate which is lower than three per cent. or such reduced rate as may be notified by the Central Government, by notification in the Official Gazette, under sub-section (1) of section 8 (whether called a tax or fee or by any other name); and

(b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in this sub-section.]

⁷[(3) Notwithstanding anything contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce, to any official, personnel, consular or diplomatic agent of—

(i) any foreign diplomatic mission or consulate in India; or

(ii) the United Nations or any other similar international body,

entitled to privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official, personnel, consular or diplomatic agent, as the case may be, has purchased such goods for himself or for the purposes of such mission, consulate, United Nations or other body.

(4) The provisions of sub-section (3) shall not apply to the sale of goods made in the course of inter-State trade or commerce unless the dealer selling such goods furnishes to the prescribed authority a certificate in the prescribed manner on the prescribed form duly filled and signed by the official, personnel, consular or diplomatic agent, as the case may be.]

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1. Section 6 re-numbered as sub-section (1) of that section by Act 31 of 1958, sec. 3 (w.e.f.1-10-1958).

2. 1st July, 1957, vide S.R.O. 940A, dated 26th March, 1957, published in the Gazette of India, Extra., Pt. II, Sec. 3, p. 1233/1.

3. Ins. by Act 61 of 1972, sec. 2 (w.e.f. 1-4-1973).

4. Ins. by Act 103 of 1976, sec. 4 (w.r.e.f. 1-4-1976).

5. Ins. by Act 28 of 1969, sec. 3 (w.r.e.f. 5-1-1957).

6. Subs. by Act 16 of 2007, sec. 2, for sub-section (2) (w.e.f. 1-4-2007). Earlier sub-section (2) was substituted by Act 61 of 1972, sec. 2 (w.e.f. 1-4-1973) and was amended by Act 25 of 1975, sec. 38 (w.e.f. 1-7-1975). Sub-section (2), before substitution by Act 16 of 2007, stood as under:

“(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods,—

(a) to the Government, or

(b) to a registered dealer other than the Government, if the goods are of the description referred to in sub-section (3) of section 8,

shall be exempt from tax under this Act:

(b) if the subsequent sale is made—

(i) to a registered dealer, a declaration referred to in clause (a) of sub-section (4) of section 8, or

(ii) to the Government, not being a registered dealer, a certificate referred to in clause (b) of section (4) of section 8:

Provided further that it shall not be necessary to furnish the declaration or the certificate referred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods if,—

(a) the sale or purchase of such goods is, under the sales tax law of the appropriate State exempt from tax generally or is subject to tax generally at a rate which is lower than four per cent. (whether called a tax or fee or by any other name); and

(b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in clause (a) or clause (b) of this sub-section.”

7. Subs. by Act 18 of 2005, sec. 91, for sub-section (3) (w.e.f. 13-5-2005). Sub-section (3), before substitution, stood as under:

“(3) Notwithstanding anything contained in this Act, if—

(a) any official or personnel of—

(i) any foreign diplomatic mission or consulate in India; or

(ii) the United Nations or any other similar international body,

entitled to privileges under any convention to which India is a party or under any law for the time being in force; or

(b) any consular or diplomatic agent of any mission, the United Nations or other body referred to in sub-clause (i) or sub-clause (ii) of clause (a),

purchases any goods for himself or for the purposes of such mission, United Nations or other body, then, the Central Government may, by notification in the Official Gazette, exempt, subject to such conditions as may be specified in the notification, the tax payable on the sale of such goods under this Act.”

Section 6A. BURDEN OF PROOF, ETC., IN CASE OF TRANSFER OF GOODS CLAIMED OTHERWISE THAN BY WAY OF SALE.

(1) Where any dealer claims that he is not liable to pay tax under this Act, in respect of any goods, on the ground that the movement of such goods from one State to another was occasioned by reason of transfer of such goods by him to any other place of his business or to his agent or principal, as the case may be, and not by reason of sale, the burden of proving that the movement of those goods was so occasioned shall be on that dealer and for this purpose he may furnish to the assessing authority, within the prescribed time or within such further time as that authority may, for sufficient cause, permit, a declaration, duly filled and signed by the principal officer of the other place of business, or his agent or principal, as the case may be, containing the prescribed particulars in the prescribed form obtained from the prescribed authority, along with the evidence of despatch of such goods ²[and if the dealer fails to furnish such declaration, then, the movement of such goods shall be deemed for all purposes of this Act to have been occasioned as a result of sale].

(2) If the assessing authority is satisfied after making such inquiry as he may deem necessary that the particulars contained in the declaration furnished by a dealer under sub-section (1) are true, he may, at the time of, or at any time before, the assessment of the tax payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods to which the declaration related shall be deemed for the purpose of this Act to have been occasioned otherwise than as a result of sale.

Explanation : In this section, “assessing authority”, in relation to a dealer, means the authority for the time being competent to assess the tax payable by the dealer under this Act.

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1. Ins. by Act 61 of 1972, sec. 3 (w.e.f. 1-4-1973).

2. Ins. by Act 20 of 2002, sec. 151 (w.e.f. 11-5-2002).

Section 7. REGISTRATION OF DEALERS.

(1) Every dealer liable to pay tax under this Act shall, within such time as may be prescribed for the purpose, make an application for registration under this Act to such authority in the appropriate State as the Central Government may, by general or special order, specify, and every such application shall contain such particulars as may be prescribed.

¹[(2) Any dealer liable to pay tax under the sales tax law of the appropriate State, or where there is no such law in force in the appropriate State or any part thereof, any dealer having a place of business in that State or part, as the case may be, may, notwithstanding that he is not liable to pay tax under this Act, apply for registration under this Act to the authority referred to in sub-section (1), and every such application shall contain such particulars as may be prescribed.

Explanation.—For the purposes of this sub-section, a dealer shall be deemed to be liable to pay tax under the sales tax law of the appropriate State notwithstanding that under such law a sale or purchase made by him is exempt from tax or a refund or rebate of tax is admissible in respect thereof.]

²[(2A) Where it appears necessary to the authority to whom an application is made under sub-section (1) or sub-section (2) so to do for the proper realisation of the tax payable under this Act or for the proper custody and use of the forms referred to in clause (a) of the first proviso to sub-section (2) of section 6 or sub-section (1) of section 6Aor ³[sub-section (4) of section 8], he may, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be so specified, for all or any of the aforesaid purposes.]

(3) If the authority to whom an application under sub-section (1) or sub-section (2) is made is satisfied that the application is in conformity with the provisions of this Act and the rules made thereunder ²[and the condition, if any, imposed under sub-section (2A), has been complied with] he shall register the applicant and grant to him a certificate of registration in the prescribed form which shall specify the class or classes of goods for the purposes of sub-section (1) of section 8.

²[(3A) Where it appears necessary to the authority granting a certificate of registration under this section so to do for the proper realisation of tax payable under this Act or for the proper custody and use of the forms referred to in sub-section (3A), he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer, to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security, or, if the dealer has already furnished any security in pursuance of an order under this sub-section or sub-section (2A), such additional security, as may be specified in the order, for all or any of the aforesaid purposes.]

⁴[(3B) No dealer shall be required to furnish any security and sub-section (2A) or any security or additional security under sub-section (3A) unless he has been given an opportunity of being heard.

(3BB) The amount of security which a dealer may be required to furnish under sub-section (2A) or sub-section (3A) or the aggregate of the amount of such security and the amount of additional security which he may be required to furnish under sub-section (3A), by the authority referred to therein shall not exceed—

(a) in the case of a dealer other than a dealer who has made an application, or who has been registered in pursuance of an application, under sub-section (2), a sum equal to the tax payable under this Act, in accordance with the estimate of such authority, on the turnover of such dealer for the year in which such security or, as the case may be, additional security is required to be furnished; and

(b) in the case of a dealer who has made an application, or who has been registered in pursuance of an application, under sub-section (2), a sum equal to the tax leviable under this Act, in accordance with the estimate of such authority on the sales to such dealer in the course of inter-state trade or commerce in the year in which such security or, as the case may be additional security is required to be furnished, had such dealer been not registered under this Act.]

⁵[(3C) Where the security furnished by a dealer under sub-section (2A) or sub-section (3A) is in the form of a surety bond and the surety becomes insolvent or dies, the dealer shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within ninety days of such occurence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.]

⁵[(3D) The authority granting the certificate of registration may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by a dealer,—

(a) for realising any amount of tax or penalty payable by the dealer;

(b) if the dealer is found to have misused any of the forms referred to in sub-section (2A) to have failed to keep them in proper custody:

Provided that no order shall be passed under this sub-section without giving the dealer an opportunity of being heard.]

⁵[(3E) Where by reason of an order under sub-section (3D), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency is such manner and within such time as may be prescribed.]

⁵[(3F) The authority issuing the forms referred to in sub-section (2A) may refuse to issue such forms to a dealer who has failed to comply with an order under that sub-section or sub-section (3A), or with the provisions of sub-section (3C) or sub-section (3E), until the dealer has complied with such order or such provisions, as the case may be.]

⁵[(3G) The authority granting a certificate of registration may, on application by the dealer to whom it has been granted, order the refund of any amount or part thereof deposited by the dealer by way of security under this section, if it is not required for the purposes of this Act.]

⁵[(3H) Any person aggrieved by an order passed under sub-section (2A), sub-section (3A), sub-section (3D) or sub-section (3G) may, within thirty days of the service of the order on him, but after furnishing the security, prefer, in such form and manner as may be prescribed, an appeal against such order to such authority (hereinafter this section referred to as the “appellate authority”) as may be prescribed:

Provided that the appellate authority may, for sufficient cause, permit such person to present the appeal—

(a) after the expiry of the said period of thirty days; or

(b) without furnishing the whole or any part of such security.]

⁶[(3-I) The procedure to be followed in hearing any appeal under sub-section (3H), and the fees payable in respect of such appeals shall be such as may be prescribed.]

⁶[(3J) The order passed by the appellate authority in any appeal under sub-section (3H) shall be final.]

⁷[(4) A certificate of registration granted under this section may—

(a) either on the application of the dealer to whom it has been granted or, where no such application has been made, after due notice to the dealer, be amended by the authority granting it if he is satisfied that by reason of the registered dealer having changed the name, place or nature of his business or the class or classes of goods in which he carries on business or for any other reason the certificate of registration granted to him requires to be amended; or

(b) be cancelled by the authority granting it where he is satisfied, after due notice to the dealer to whom it has been granted, that he has ceased to carry on business 8[or has ceased to exist or has failed without sufficient cause, to comply with an order under sub-section (3A) or with the provisions of sub-section (3C) or sub-section (3E) or has failed to pay any tax or penalty payable under this Act], or in the case of a dealer registered under sub-section (2) has ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason.]

(5) A registered dealer may apply in the prescribed manner not later than
six months before the end of a year to the authority which granted his certificate of registration for the cancellation of such registration, and the authority shall, unless the dealer is liable to pay tax under this Act, cancel the registration accordingly, and where he does so, the cancellation shall take effect from the end of the year.

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1. Subs. by Act 31 of 1958, sec. 4, for sub-section (2) (w.e.f. 1-10-1958).

2. Ins. by Act 61 of 1972, sec. 4 (w.e.f. 1-4-1973).

3. Subs. by Act 16 of 2007, sec. 3, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007).

4. Subs. by Act 103 of 1976, sec. 5, for sub-section (3B) (w.e.f. 7-9-1976). Earlier sub-section (3B) was inserted by Act 61 of 1972, sec. 4 (w.e.f. 1-4-1973).

5. Ins. by Act 61 of 1972, sec. 4 (w.e.f. 1-4-1973).

6. Ins. by Act 61 of 1972, sec. 4 (w.e.f. 1-4-1973).

7. Subs. by Act 31 of 1958 sec. 4, for sub-section (4) (w.e.f. 1-10-1958).

8. Subs. by Act 61 of 1972, sec. 4, for “or has ceased to exist” (w.e.f. 1-4-1973).

Section 8. RATES OF TAX ON SALES IN THE COURSE OF INTER-STATE TRADE OR COMMERCE.

²[(1) Every dealer, who in the course of inter-State trade or commerce, sells to a registered dealer goods of the description referred to in sub-section (3), shall be liable to pay tax under this Act, which shall be ³[two per cent.] of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, whichever is lower:

Provided that the Central Government may, by notification in the Official Gazette, reduce the rate of tax under this sub-section.]

⁴[(2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State.

Explanation. —For the purposes of this sub-section, a dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law.]

⁵[***]

(3) ⁶[The goods referred to in sub-section (1)]—

⁷[***]

(b) ⁸[***] are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or ⁹[in the tele-communications network or] in mining or in the generation or distribution of electricity or any other form of power;

(c) are containers or other materials specified in the certificate of registration of the registered dealer purchasing the goods, being containers or materials intended for being used for the packing of goods for sale;

(d) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in ¹⁰[***] clause (b) or for the packing of any containers or other materials specified in the certificate of registration referred to in clause (c).

¹¹[(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority:

Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit.]

¹²[(5) Notwithstanding anything contained in this section, the State Government may ¹³ [on the fulfilment of the requirements laid down in sub-section (4) by the dealer] if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette and subject to such conditions as may be specified therein direct,—

(a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, 13[to a registered dealer ¹⁴[***]] from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) ¹⁵[***] as may be mentioned in the notification;

(b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of inter-State trade or commerce ¹³[to a registered dealer ¹⁴[ ***]] by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under this Act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) ¹⁵[***] as may be mentioned in the notification.]

¹⁶[(6) Notwithstanding anything contained in this section, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce to a registered dealer for the purpose of setting up, operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in a unit located in any special economic zone or for development, operation and maintenance of special economic zone by the developer of the special economic zone, if such registered dealer has been authorised to establish such unit or to develop, operate and maintain such special economic zone by the authority specified by the Central Government in this behalf.]

(7) The goods referred to in sub-section (6) shall be the goods of such class or classes of goods as specified in the certificate of registration of the registered dealer referred to in that sub-section.

(8) The provisions of sub-sections (6) and (7) shall not apply to any sale of goods made in the course of inter-State trade or commerce unless the dealer selling such goods furnishes to the ¹⁷[prescribed authority referred to in sub-selling such goods furnishes to the 17[prescribed authority referred to in sub-section (4) a declaration in the prescribed manner on the prescribed form obtained from the authority specified by the Central Government under sub-section (6)] in sub-section (5), duly filled in and signed by the registered dealer to whom such goods are sold.

Explanation.— For the purposes of sub-section (6), the expression “special economic zone” has the meaning assigned to it in clause (iii) to Explanation 2 to the proviso to section 3 of the Central Excise Act, 1944 (1 of 1944).]

———-

1. The Act has been extended to Goa, Daman and Diu (with modifications) by Reg. 12 of 1962, sec. 3 and Sch., to Kohima and Mokokchung districts of Nagaland (as in force on 5-8-1971) by Act 61 of 1972, sec. 14 (1) (w.e.f. 30-11-1972). The amendments made to the Act by Act 61 of 1972, came into force in the said districts (w.e.f. 1-4-1973) [ vide sec. 14(2), Act 61 of 1972].

2. Subs. by Act 16 of 2007, sec. 4(a), for sub-section (1) (w.e.f. 1-4-2007). Earlier sub-section (1) was substituted by Act 31 of 1958, sec. 5 (w.e.f. 1-10-1958) and was amended by Act 25 of 1975, sec. 38 (w.e.f. 1-7-1975) and by Act 32 of 2003, sec. 162 (w.e.f. 14-5-2003). Sub-section (1), before substitution by Act 16 of 2007, stood as under:

“(1) Every dealer, who in the course of inter-State trade or commerce—

(a) sells to the Government any goods; or

(b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3),

shall be liable to pay tax under this Act, with effect from such date as may be notified by the Central Government in the Official Gazette for the purpose, which shall be two per cent. of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, or, as the case may be, under any enactment of that State imposing value added tax, whichever is lower:

Provided that the rate of tax payable under this sub-section by a dealer shall continue to be four per cent. of his turnover, until the rate of two per cent. takes effect under this sub-section.”

3. Subs. by S.O. 1277(E), dated 30th May, 2008, for “three per cent.” (w.e.f. 1-6-2008).

4. Subs. by Act 16 of 2007, sec. 4(a), for sub-section (2) (w.e.f. 1-4-2007). Earlier sub-section (2) was substituted by Act 31 of 1958, sec. 5 (w.e.f. 1-10-1958) and was amended by Act 8 of 1963, sec. 2 (w.e.f. 1-4-1963) and by Act 20 of 2002, sec. 152 (w.e.f. 11-5-2002). Earlier sub-section (2), before substitution by Act 16 of 2007, stood as under:

“(2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1)—

(a) in the case of declared goods, shall be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State;

(b) in the case of goods other than declared goods, shall be calculated at the rate of ten per cent. or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher; and

(c) in the case of goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally shall be nil,

and for the purpose of making any such calculation under clause (a) or clause (b), any such dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law.

Explanation.— For the purposes of this sub-section, a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods.”

5. Sub-section (2A) omitted by Act 20 of 2002, sec. 152 (w.e.f. 11-5-2002). Earlier sub-section (2A) [along with sub-sections (2), (3) and (4)] was substituted by Act 31 of 1958, sec. 5, for sub-sections (1), (2), (3) and (4) (w.e.f. 1-10-1958).

6. Subs. by Act 16 of 2007, sec. 4(b), for “The goods referred to in clause (b) of sub-section (1)” (w.e.f. 1-4-2007).

7. Clause (a) omitted by Act 8 of 1963, sec. 2 (w.e.f. 1-4-1963).

8. Certain words omitted by Act 8 of 1963, sec. 2 (w.e.f. 1-4-1963).

9. Ins. by Act 20 of 2002, sec. 152 (w.e.f. 11-5-2002).

10. The words “clause (a) or” omitted by Act 8 of 1963, sec. 2 (w.e.f. 1-4-1963).

11. Subs. by Act 16 of 2007, sec. 4(c), for sub-section (4) (w.e.f. 1-4-2007). Earlier sub-section (4) was amended by Act 61 of 1972, sec. 5 (w.e.f. 1-4-1973). Sub-seciton (4), before substitution by Act 16 of 2007, stood as under:

“(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner—

(a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or

(b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authorised officer of the Government:

Provided that the declaration referred to in clause (a) is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit.”

12. Subs. by Act 61 of 1972, sec. 5, for sub-section (5) (w.e.f. 1-4-1973).

13. Ins. by Act 20 of 2002, sec. 152 (w.e.f. 11-5-2002).

14. The words “or the Government” omitted by Act 16 of 2007, sec. 4(d) (w.e.f. 1-4-2007).

15. The words “or sub-section (2)” omitted by Act 16 of 2007, sec. 4(d) (w.e.f. 1-4-2007).

16. Subs. by Act 23 of 2004, sec. 118, for sub-section (6) (w.e.f. 10-9-2004). Sub-section (6), before substitution, stood as under:

“(6) Notwithstanding anything contained in this section, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce to a registered dealer for the purpose of manufacture, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as trading or packing material or packing accessories in an unit located in any special economic zone, if such registered dealer has been authoirsed to establish such unit by the authority specified by the Central Government in this behalf”.

17. Subs. by Act 23 of 2004, sec. 118, for “authority referred to in sub-section (6) a declaration in the prescribed manner on the prescribed form obtained from the authority referred to in sub-section (5)” (w.e.f. 10-9-2004).

Section 8A. DETERMINATION OF TURNOVER.

(1) In determining the turnover of a dealer for the purpose of this Act, the following deductions shall be made from the aggregate of the sale prices, namely : (a) the amount arrived at applying the following formula :

rate of tax × aggregate of sale prices `

_____________________________

100 + rate of tax

PROVIDED that no deduction on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer, in accordance with the provisions of this Act, has been otherwise deducted from the aggregate of sale prices.

Explanation : Where the turnover of a dealer is taxable at different rates, the aforesaid formula shall be applied separately in respect of each part of the turnover liable to a different rate of tax;

(b) the sale price of all goods returned to the dealer by the purchasers of such goods, -

(i) within a period of three months from the date of delivery of the goods, in the case of goods returned before the 14th day of May, 1966;

(ii) within a period of six months from the date of delivery of the goods in the case of goods returned on or after the 14th day of May, 1966 :

PROVIDED that satisfactory evidence of such return of goods and of refund or adjustment in accounts of the sale price thereof is produced before the authority competent to assess or, as the case may be, reassess the tax payable by the dealer under this Act; and

(c) such other deductions as the Central Government may, having regard to the prevalent market conditions, facility of trade and interests of consumers, prescribe.

(2) Save as otherwise provided in sub-section (1), in determining the turnover of a dealer for the purposes of this Act, no deduction shall be made from the aggregate of the sale prices.

————

1.Ins. by Act 28 of 1969, sec. 5 (w.r.e.f. 5-1-1957).

Section 9. LEVY AND COLLECTION OF TAX AND PENALTIES.

¹[9. Levy and collection of tax and penalties.—(1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provision of sub-section (2), in the State from which the movement of the goods commenced:

²[Provided that, in the case of a sale of goods during their movement from one State to another, being a sale subsequent to the first sale in respect of the same goods and being also a sale which does not fall within sub-section (2) of section 6, the tax shall be levied and collected—

(a) where such subsequent sale has been effected by a registered dealer, in the State from which the registered dealer obtained or, as the case may be, could have obtained, the form prescribed for the purposes of ³[sub-section (4) of section 8] in connection with the purchase of such goods; and

(b) where such subsequent sale has been effected by an unregistered dealer in the State from which such subsequent sale has been effected.]

(2) Subject to the other provisions of this Act and the rules made thereunder, the authorities for the time being empowered to assess, re-assess, collect and enforce payment of any tax under general sales tax law of the appropriate State shall, on behalf of the Government of India, assess re-assess, collect and enforce payment of tax, including any ⁴[interest or penalty,] payable by a dealer under this Act as if the tax or 4[interest or penalty] payable by such a dealer under this Act is a tax or 4[interest or penalty] payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, ⁵[refunds, rebates, penalties,] ⁶[charging or payment of interest,] compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly:

Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, be rules made in this behalf make necessary provision for all or any of the matter specified in this sub-section.

⁷[(2A) All the 8[provisions relating to offences, interest and penalties] (including provisions relating to penalties in lieu of prosecution for an offence or in addition to the penalties or punishment for an offence but excluding the provisions relating to matters provided for in section 10 and 10A) of the general sales tax law of each State shall, with necessary modifications, apply in relation to the assessment, re-assessment, collection and the enforcement of payment of any tax required to be collected under this Act in such State or in relation to any process connected with such assessment, re-assessment, collection or enforcement of payment as if the tax under this Act were a tax under such sales tax law.]

⁹[(2B) If the tax payable by any dealer under this Act is not paid in time, the dealer shall be liable to pay interest for delayed payment of such tax and all the provisions for delayed payment of such tax and all the provisions relating to due date for payment of tax, rate of interest for delayed payment of tax, of the general sales tax law of each State, shall apply in relation to due date for payment of tax, rate of interest for delayed payment of tax, and assessment and collection of interest for delayed payment of tax under this Act in such States as if the tax and the interest payable under this Act were a tax and an interest under such sales tax law.]

(3) The proceeds in any financial year of any tax, ¹⁰[including any interest or penalty] levied and collected under this Act in any State (other than a Union Territory) on behalf of the Government of India shall be assigned to the State and shall be retained by it; and the proceeds attributable to Union territories shall form part of the Consolidated Fund of India.]

—————

1. Subs. by Act 28 of 1969, sec. 6, for section 9 (w.r.e.f. 5-1-1957). Earlier section 9 was substituted by Act 31 of 1958, sec. 6 (w.e.f. 1-10-1958).

2. Subs. by Act 103 of 1976, sec. 6, for the proviso (w.e.f. 7-9-1976).

3. Subs. by Act 16 of 2007, sec. 5, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007).

4. Subs. by Act 10 of 2000, sec. 119, for “penalty” (w.e.f. 12-5-2000).

5. Subs. by Act 61 of 1972, sec. 6, for “refunds, penalties” (w.e.f. 1-4-1973).

6. Ins. by Act 103 of 1976, sec. 6 (w.e.f. 7-9-1976).

7. Ins. by Act 103 of 1976, sec. 6 (w.e.f. 7-9-1976).

8. Subs. by Act 10 of 2000, sec. 119, for “provisions relating to offences and penalties” (w.e.f. 12-5-2000).

9. Ins. by Act 10 of 2000, sec. 119 (w.e.f. 12-5-2000).

10. Subs. by Act 10 of 2000, sec. 119, for “including any penalty” (w.e.f. 12-5-2000).

Section 9A. COLLECTION OF TAX TO BE ONLY BY REGISTERED DEALERS.

¹9A. COLLECTION OF TAX TO BE ONLY BY REGISTERED DEALERS. No person who is not a registered dealer shall collect in respect of any sale by him of goods in the course of inter-State trade or commerce any amount by way of tax under this Act, and no registered dealer shall make any such collection except in accordance with this Act and the rules made thereunder.

—————

1. Ins. by Act 31 of 1958, sec. 6 (w.e.f. 1-10-1958).

Section 9B. ROUNDING OFF OF TAX, ETC.

¹9B. ROUNDING OFF OF TAX, ETC.

The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored :

PROVIDED that nothing in this section shall apply for the purpose of collection by a dealer of any amount by way of tax under this Act in respect of any sale by him of goods in the course of inter-State trade or commerce.

———-

1.Ins. by Act 61 of 1972, sec. 7 (w.e.f. 1-4-1973).

Section 10. PENALTIES.

If any person—¹[(a) furnishes a ²[***] declaration under sub-section (2) of section 6 or sub-section (1) of section 6A or sub-section (4) ³[or sub-section (8)] of section 8, which he knows, or has reason to believe, to be false; or

(aa) fails to get himself registered as required by section 7 or fails to comply with an order under sub-section (3A) or with the requirements of sub-section 3(C) or sub-section (3E) of that section;]

(b) being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration; or

(c) not being a registered dealer, falsely represents when purchasing goods in the course of inter-State trade or commerce that he is a registered dealer; or

(d) after purchasing any goods for any of the purposes specified in ⁴[clause (b) or clause (c) or clause (d)] of sub-section (3) 3[or sub-section (6)] of section 8 fails, without reasonable excuse, to make use of the goods for any such purpose;

(e) has in his possession any form prescribed for the purpose of sub-section (4) 3[or sub-section (8)] of section 8 which has not been obtained by him or by his principal or by his agent in accordance with the provisions of this Act or any rules made thereunder;

⁵[(f) collects any amount by way of tax in contravention of the provisions contained in section 9A,]

he shall be punishable with simple imprisonment which may extend to six months, or with fine or with both; and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues.

—————

1. Subs. by Act 61 of 1972, sec. 8, for clause (a) (w.e.f. 1-4-1973).

2. The words “certificate or” omitted by Act 16 of 2007, sec. 6 (w.e.f. 1-4-2007).

3. Ins. by Act 20 of 2002, sec. 153 (w.e.f. 11-5-2002).

4. Subs. by Act 61 of 1972, sec. 8, for “clause (b)” (w.e.f. 1-4-1973).

5. Ins. by Act 31 of 1958, sec. 7 (w.e.f. 1-10-1958).

Section 10A. IMPOSITION OF PENALTY IN LIEU OF PROSECUTION.

¹[10A. Imposition of penalty in lieu of prosecution—²[(1)] If any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one and a half times ³[the tax which would have been levied under sub-section (2) of section 8 in respect of the sale to him of the goods, if the sale had been a sale falling within that sub-section]:

Provided that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed under this section.]

⁴[(2) The penalty imposed upon any dealer under sub-section (1) shall be collected by the Government of India in the manner provided in sub-section (2) of section 9—

(a) in the case of an offence falling under clause (b) or clause (d) of section 10, in the State in which the person purchasing the goods obtained the form prescribed for the purposes of ⁵[sub-section (4) of section 8] in connection with the purchase of such goods;

(b) in the case of an offence falling under clause (c) of section 10, in the State in which the person purchasing the goods should have registered himself if the offence had not been committed.]

—————

1. Ins. by Act 31 of 1958, sec. 8 (w.e.f. 1-10-1958).

2. Section 10A re-numbered as sub-section (1) of that section by Act 28 of 1969, sec. 7 (w.r.e.f. 1-10-1958).

3. Subs. by Act 61 of 1972, sec. 9, for certain words (w.e.f. 1-4-1973).

4. Ins. by Act 28 of 1969, sec. 7 (w.r.e.f. 1-10-1958).

5. Subs. by Act 16 of 2007, sec. 7, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007).

Section 11. COGNIZANCE OF OFFENCES.

(1) No court shall take cognizance of any offence punishable under this Act or the rules made there under except with the previous sanction of the government within the local limits of whose jurisdiction the offence has been committed or of such officer of that government as it may, by general or special order, specify in this behalf; and no court inferior to that of a presidency magistrate or a magistrate of the first class shall try any such offence.

(2) All offences punishable under this Act shall be cognizable and bailable.

Section 12. INDEMNITY.

No suit, prosecution or other legal proceeding shall lie against any officer of government for anything which is in good faith done or intended to be done under this Act or the rules made there under.

Section 13. POWER TO MAKE RULES.

(1) The Central Government may, by notification in the Official Gazette, make rules providing for -

(a) the manner in which application for registration may be made under this Act, the particulars to be contained therein, the procedure for the grant of such registration, the circumstances in which registration may be refused and the form in which the certificate of registration may be given;

¹[(aa) the manner of determination of the sale price and the deductions from the total consideration for a works contract under the proviso to clause (h) of section 2;]

²[[³(ab)] the form and the manner for furnishing declaration under sub-section (8) of section 8;]

(b) the period of turnover, the manner in which the turnover in relation to the sale of any goods under this Act shall be determined, and the deductions which may be made ⁴[under clause (c) of sub-section (1) of section 8A] in the process of such determination;

(c) the cases and circumstances in which, and the conditions subject to which, any registration granted under this Act may be cancelled;

⁵[(d) the form in which and the particulars to be contained in any declaration or certificate to be given under this Act ⁶[the State of origin of such form or certificate and the time within which any such certificate or declaration shall be produced or furnished];

(e) the enumeration of goods or class of goods used in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power;

(f) the matters in respect of which provision may be made under the provision to ⁷[sub-section (2)] of section 9;

(g) the fees payable in respect of applications under this Act.]

⁸[(h) the proper functioning of the Authority constituted under section 19;

(i) the salaries and allowances payable to, and the terms and conditions of service of, the Chairman and Members under sub-section (3) of
section 19;

(j) any other matter as may be prescribed.]

⁹[(2) Every rule made by the Central Government under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 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.]

(3) The State Government may make rules, not inconsistent with the provisions of this Act and the rules made under sub-section (1), to carry out the purposes of this Act.

(4) In particular and without prejudice to the powers conferred by sub-section (3), the State Government may make rules for all or any of the following purposes, namely:—

(a) the publication of lists of registered dealers, of the amendments made in such lists from time to time, and the particulars to be contained in such lists;

¹⁰[(aa) the manner in which security may be furnished under sub-section (2A) or sub-section (3A) or sub-section (3C) of section 7 and the manner in which and the time within which any deficiency may be made up under sub-section (3E) of that section;]

(b) the form and manner in which accounts relating to sales in the course of inter-State trade or commerce shall be kept by registered dealers;

(c) the furnishing of any information relating to the stocks of goods of purchases, sales and deliveries of books by, any dealer or any other information relating to his business as may be necessary for the purposes of this Act;

(d) the inspection of any books, accounts or documents required to be kept under this Act, the entry into any premises at all reasonable times for the purposes of searching for any such books, accounts or documents kept or suspected to be kept in such premises and the seizure of such books, accounts or documents;

¹¹[(e) the authority from whom, the conditions subject to which and fees subject to payment of which any form of certificate prescribed under clause (a) of the first proviso to sub-section (2) of section 6 or of declaration prescribed under sub-section (1) of section 6A or sub-section (4) of section 8 may be obtained, the manner in which such forms shall be kept in custody and records relating thereto maintained and the manner in which any such form may be used and any such certificate or declaration may be furnished;

(ee) the form and manner in which, and the authority to whom, an appeal may be preferred under sub-section (3H) of section 7, the procedure to be followed in hearing such appeals and the fees payable in respect of such appeals;]

(f) in the case of an Undivided Hindu Family, association, club, society, firm or company or in the case of a person who carries on business as a guardian or trustee or otherwise on behalf of another person, the furnishing of a declaration stating the name of the person who shall be deemed to be the manager in relation to the business of the dealer in the State and the form in which such declaration may be given;

(g) the time within which, the manner in which and ¹²[the authorities to whom] any change in the ownership of any business or in ¹³[the name, place or nature] of any business carried on by any dealer shall be furnished.

(5) In making any rule under this section ¹⁴[the Central Government or as the case may be, the State Government] may direct that a breach thereof shall be punishable with fine which may extend to five hundred rupees and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues.

—————

1. Ins. by Act 18 of 2005, sec. 92 (w.e.f. 13-5-2005).

2. Ins. by Act 20 of 2002, sec. 154 (w.e.f. 11-5-2002).

3. Clause (aa) relettered as clause (ab) by Act 18 of 2005, sec. 92 (w.e.f. 13-5-2005).

4. Ins. by Act 61 of 1972, sec. 10 (w.e.f. 1-4-1973).

5. Subs. by Act 31 of 1958, sec. 9, for clause (d) (w.e.f. 1-10-1958).

6. Ins. by Act 61 of 1972, sec. 10 (w.e.f. 1-4-1973).

7. Subs. by Act 28 of 1969, sec. 8, for “sub-section (3)” (w.r.e.f. 5-1-1957).

8. Ins. by Act 41 of 2001, sec. 2 (w.e.f. 17-3-2005).

9. Subs. by Act 61 of 1972, sec. 10, for sub-section (2) (w.e.f. 1-4-1973).

10. Ins. by Act 61 of 1972, sec. 10 (w.e.f. 1-4-1973).

11. Subs. by Act 61 of 1972, sec. 10, for clause (e) (w.e.f. 1-4-1973).

12. Subs. by Act 31 of 1958, sec. 9, for “the authorities to which” (w.e.f. 1-10-1958).

13. Subs. by Act 31 of 1958, sec. 9, for “the nature” (w.e.f. 1-10-1958).

14. Subs. by Act 61 of 1972, sec. 10, for “the State Government” (w.e.f. 1-4-1973).

Section 14. CERTAIN GOODS TO BE OF SPECIAL IMPORTANCE IN INTER-STATE TRADE OR COMMERCE.

It is hereby declared that the following goods are of special importance in inter-State trade or commerce:—

1[(i) cereals, that is to say,—

(i) paddy (Oryza sativa L.);

(ii) rice (Oryza sativa L.);

(iii) wheat (Triticum vulgar, T. compactum, T. sphaerococcum, T. durum, T. aestivum L. T. dicoccum);

(iv) jowar or milo (Sorghum vulgare Pers);

(v) bajra (Pennisetum typhoideum L.);

(vi) maize (Zea mays D.);

(vii) ragi (eleusine coracana Gaertn.);

(viii) kodon (paspalum scrobiulatum L.);

(ix) kutki (Panicum miliare L.);

(x) barley (Hordeum vulgare L.);]

²[³[(ia)] coal, including coke in all its forms, but excluding charcoal:

Provided that during the period commencing on the 23rd day of February, 1967 and ending with the date of commencement of section 11 of the Central Sales Tax (Amendment) Act, 1972 (61 of 1972) this clause shall have effect subject to the modification that the words “but excluding charcoal” shall be omitted;]

(ii) cotton, that is to say all kinds of cotton (indigenous or imported) in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise, but not including cotton waste;

⁴[(iia) cotton fabrics covered under heading Nos. 52.05, 52.06, 52.07, 52.08, 52.09, 52.10, 52.11, 52.12, 58.01, 58.02, 58.03, 58.04, 58.05, ⁵[58.06,] 59.01, 59.03, 59.05, 59.06, and 60.01 of the Schedule to the Central Exercise Tariff Act, 1985 (5 of 1986);]

⁶[(iib) cotton yarn, but not including cotton yarn waste;]

⁷[(iic) crude oil, that is to say, crude petroleum oils and crude oils obtained from bituminous minerals (such as shale, calcareous rock, sand), whatever their composition, whether obtained from normal or condensation oil-deposits or by the destructive distillation of bituminous minerals and whether or not subjected to all or any of the following processes:—

(1) decantation;

(2) de-salting;

(3) dehydration;

(4) stabilisation in order to normalise the vapour pressure;

(5) elimination of very light fractions with a view to returning them to the oil-deposits in order to improve the drainage and maintain the pressure;

(6) the addition of only those hydrocarbons previously recovered by physical methods during the course of the above mentioned processes;

(7) any other minor process (including addition of pour point depressants or flow improvers) which does not change the essential character of the substance;]

⁸[(iid) Aviation Turbine Fuel sold to an aircraft with a maximum take-off mass of less than forty thousand kilograms operated by scheduled airlines.

Explanation.—For the purposes of this clause, “scheduled airlines” means the airlines which have been permitted by the Central Government to operate any Scheduled air transport service;]

(iii) hides and skins, whether in a raw or dressed state;

⁹[(iv) iron and steel, that is to say,—

(i) ¹⁰[pig iron, sponge iron and] cast iron including ¹¹[ingot moulds, bottom plates], iron scrap, cost iron scrap, runner scrap and iron skull scrap;

(ii) steel semis (ingots, slabs, blooms and billets of all qualities, shapes and sizes);

(iii) skelp bars, tin bars, sheet bars, hoe-bar and sleeper bars;

(iv) steel bars (rounds, rods, squares, flat, octagons and hexagons, plain and ribbed or twisted, in coil form as well as straight lengths;

(v) steel structurals (angles, joists, channels, tees, sheet piling sections, Z-sections or any other rolled sections);

(vi) sheets, hoops, strips and skelp, both black and galvanised, hot and cold rolled plain and corrugated, in all qualities, in straight lengths and in coil form, as rolled and in rivetted condition;

(vii) Plates both plain and chequered in all qualities;

(viii) discs, rings, forgings and steel castings;

(ix) tools, alloy and special steels of any of the above categories;

(x) steel melting scrap in all forms including steel skull, turnings and borings;

(xi) steel tubes, both welded and seamless, of all diameters and lengths including tube fittings;

(xii) tin-plates, both hot dipped and electrolytic and tinfree plates;

(xiii) fish plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing plates, crossing sleepers and pressed steel sleepers—heavy and light crane rails;

(xiv) wheels, tyres, axles and wheels sets;

(xv) wire rods and wires—rolled, drawn, galvanised, aluminised, tinned or coated such as by copper;

(xvi) defectives, rejects, cuttings, or end pieces of any of the above categories;]

¹²[(v) jute, that is to say, the fibre extracted from plants belonging to the species Corchorrus capsularies and Corchorus olitorius and the fibre known as mesta or bimli extracted from plants of the species Hibiscus cannabinus and Hibiscus sabdariffa—Varaltissima and the fibre known as Sunn or Sunn-hemp extracted from plants of the species Crotalaria juncea whether baled or otherwise;]

¹³[(va) liquified petroleum gas for domestic use;]

¹⁴[(vi) oilseeds, that is to say,—

(i) groundnut or peanut (Arachis hypogaea);

(ii) sesamum or til (Sesamum orientale);

(iii) cotton seed (Gossypium Spp);

(iv) soyabean (Glycine seja);

(v) rapeseed and mustard—

(1) torta (Brassica campestris var toria);

(2) rai (Brassica juncea);

(3) jamba—taramira (Eruca Satiya);

(4) sarson, yellow and brown (Brassica campestris var sarson);

(5) banarasi rai or true mustard (Brassica nigra);

(vi) linseed (Linum usitatissimum);

(vii) castor (Ricinus communis);

(viii) coconut (i.e., Copra excluding tender coconuts) (cocosnucifera);

(ix) sunflower (Helianthus annus);

(x) nigar seed (Guizotia abyssinica);

(xi) neem, vepa (Azadirachta indica);

(xii) mahua, illupai, ippe (Madhuca indica M. Latifolia, Bassia, Latifolia and Madhuca longifolia syn. M. Longifolia);

(xiii) karanja, pongam, honga (Pongamia pinnata syn. P. Glabra);

(xiv) kusum (Schleichera oleosa, syn. S. Trijuga);

(xv) punna, Undi (Calophyllum inophyllum);

(xvi) kokum (Carcinia indica);

(xvii) sal (Shorea rebusta);

(xviii) tung (Aleurites fordii and A. montana);

(xix) red palm (Elaeis guinensis);

(xx) safflower (Carthanus tinctorius);]

¹⁵[(via) pulses, that is to say,—

(i) gram or gulab gram (Cicerarietinum L.);

(ii) tur or arhar (Cajanus cajan);

(iii) moong or green gram (Phaseolus aureus);

(iv) masur or lentil (Lens esculemta Moench, Lens culinarie Medic.);

(v) urad or black gram (Phaseolus mungo);

(vi) moth (Phaseolus aconitifolius Jacq);

(vii) lakh or khesari (Lathyrus sativus L.);]

¹⁶[(vii) man-made fabrics covered under heading Nos. 54.08, 54.09, 54.10, 54.11, 54.12, 55.07, 55.08, 55.09, 55.10, 55.11, 55.12, 58.01, 58.02, 58.03, 58.04, 58.05, 17[58.06,] 59.01, 59.02, 59.03, 59.05, 59.06, and 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);]

¹⁸[(viii) sugar covered under sub-heading Nos. 1701.20, 1701.31, 1701.39, and 1702.11 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);]

¹⁹[***]

²⁰[(x) woven fabrics of wool covered under heading Nos. 51.06, 51.07, 58.01, 58.02, 58.03 and 58.05 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1985);]

²¹[***]

—————

1. Ins. by Act 103 of 1976, sec. 7 (w.e.f. 7-9-1976).

2. Subs. by Act 61 of 1972, sec. 11, for clause (i) (w.r.e.f. 5-1-1957).

3. Clause (i) re-numbered as clause (ia) by Act 103 of 1976, sec. 7 (w.e.f. 7-9-1976).

4. Subs. by Act 26 of 1988, sec. 85, for item (iia) (w.e.f. 13-5-1988). Earlier item (iia) was inserted by Act 16 of 1957, sec. 3 (w.e.f. 4-6-1957) and was substituted by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958).

5. Ins. by Act 13 of 1989, sec. 50 (w.e.f. 12-5-1989).

6. Ins. by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958)

7. Ins. by Act 103 of 1976, sec. 7 (w.e.f. 7-9-1976).

8. Subs. by the Act 22 of 2007, sec. 142, for clause (iid). Earlier clause (iid) was inserted by Act 14 of 2001, sec. 139 (w.e.f. 11-5-2001). Clause (iid), before substitution by the Act 22 of 2007, stood as under:

“(iid) Aviation Turbine Fuel sold to a Turbo-Prop Aircraft.

Explanation.—For the purposes of this clause, “Turbo-Prop Aircraft” means an aircraft deriving thrust, mainly from propeller, which may be driven by either turbine engine or piston engine;”.

9. Subs. by Act 61 of 1972, sec. 11, for clause (iv) (w.e.f. 1-4-1973).

10. Subs. by Act 14 of 2001, sec. 139, for “pig iron and” (w.e.f. 11-5-2001).

11. Subs. by Act 38 of 1978, sec. 3 and Sch. II, for “ingot moulds bottom plates” (w.e.f. 26-11-1978).

12. Subs. by Act 61 of 1972, sec. 11, for clause (v) (w.e.f. 1-4-1973).

13. Ins. by Act 21 of 2006, sec. 71 (w.e.f. 18-4-2006).

14. Subs. by Act 61 of 1972, sec. 11, for clause (vi) (w.e.f. 1-4-1973).

15. Ins. by Act 103 of 1976, sec. 7 (w.e.f. 7-9-1976).

16. Subs. by Act 26 of 1988, sec. 85, for item (vii) (w.e.f. 13-5-1988). Earlier item (vii) was inserted by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958).

17. Ins. by Act 13 of 1989, sec. 50.

18. Subs. by Act 26 of 1988, sec. 85, for item (viii) (w.e.f. 13-5-1988). Earlier item (viii) was inserted by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958).

19. Clause (ix) omitted by Act 16 of 2007, sec. 8 (w.e.f. 1-4-2007). Earlier clause (ix) was inserted by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958) and was substituted by Act 26 of 1988, sec. 85 (w.e.f. 13-5-1988) and was amended by Act 13 of 1989, sec. 50 (w.e.f. 12-5-1989). Clause (ix), before omission by Act 16 of 2007, stood as under:

“(ix) unmanufactured tobacco and tobacco refuse covered under sub-heading No. 2401.00, cigars and cheroots of tobacco covered under heading No. 24.02, cigarettes and cigarillos of tabacco covered under sub-heading Nos. 2403.11, and 2403.21 and other manufactured tobacco covered under sub-heading Nos. 2404.11, 2404.12, 2404.13, 2404.19, 2404.21, 2404.29, 2404.31, 2404.39, 2404.41, 2404.50 and 2404.60 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);”

20. Subs. by Act 26 of 1988, sec. 85, for item (x) (w.e.f. 13-5-1988). Earlier item (x) was inserted by Act 31 of 1958, sec. 10 (w.e.f. 1-10-1958).

21. Item (xi) omitted by Act 19 of 1968, sec. 43 (w.e.f. 11-5-1968).

Section 15. RESTRICTIONS AND CONDITIONS IN REGARD TO TAX ON SALE OR PURCHASE OF DECLARED GOODS WITHIN A STATE.

Every sales tax law of a State shall, insofar as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely :-

(a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed ²four per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage;³[***]

(b) where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce,⁴ and tax has been paid under this Act in respect of the sale of such goods in the course of inter-State trade or commerce, the tax levied under such law ⁵shall be reimbursed to the person making such sale in the course of inter-State trade or commerce in such manner and subject to such conditions as may be provided in any law in force in that State;

⁶(c) where a tax has been levied under that law in respect of the sale or purchase inside the State of any paddy referred to in sub-clause (i) of clause (i) of section 14, the tax leviable on rice procured out of such paddy shall be reduced by the amount of tax levied on such paddy;

⁷[(ca) where a tax on sale or purchase of paddy referred to in sub-clause (i) of clause (i) of section 14 is leviable under the law and the rice procured out of such paddy is exported out of India, then, for the purposes of sub-section (3) of section 5, the paddy and rice shall be treated as a single commodity;]

(d) each of the pulses referred to in clause (via) of section 14, whether whole or separated, and whether with or without husk, shall be treated as a single commodity for the purposes of levy of tax under that law.

—————

1. Subs. by Act 31 of 1958, sec. 11, for section 15 (w.e.f. 1-10-1958).

2. Subs. by Act 25 of 1975, sec. 38, for “three per cent.” (w.e.f. 1-7-1975).

3. Certain words omitted by Act 20 of 2002, sec. 155 (w.e.f. 11-5-2002).

4. Subs. by Act 61 of 1972, sec. 12, for “the tax so levied” (w.e.f. 1-4-1973).

5. Subs. by Act 61 of 1972, sec. 12, for “shall be refunded to such person” (w.e.f. 1-4-1973).

6. Ins. by Act 103 of 1976, sec. 8 (w.e.f. 7-9-1976).

7. Ins. by Act 33 of 1996, sec. 87 (w.e.f. 28-9-1996).

Section 16. DEFINITIONS.

In this Chapter, -

(a) “appropriate authority”, in relation to a company, means the authority competent to assess tax on the company;

(b) “company” and “private company” have the meanings respectively assigned to them by clauses (i) and (iii) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956).

—————

*. Sections 16 ins. by Act 61 of 1972, sec. 13 (w.e.f. 1-4-1973).

Section 17. COMPANY IN LIQUIDATION.

(1) Every person, -

(a) who is the liquidator of any company which is being wound up, whether under the orders of a court or otherwise; or

(b) who has been appointed the receiver of any assets of a company, (hereinafter referred to as the liquidator) shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority.

(2) The appropriate authority shall, after making such inquiry or calling for such information as it may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which, in the opinion of the appropriate authority would be sufficient, to provide for any tax which is then, or is likely thereafter to become, payable by the company.

(3) The liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under sub-section (2) and on being so notified, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the assets of the company or the properties in his hands :

PROVIDED that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a court or for the purpose of the payment of the tax payable by the company under this Act or for making any payment to secured creditors whose debts are entitled under law to priority of payment over debts due to government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion of the appropriate authority reasonable.

(4) If the liquidator fails to give the notice in accordance with sub- section (1) or fails to set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:

PROVIDED that if the amount of any tax payable by the company is notified under sub-section (2), the personal liability of the liquidator under this sub-section shall be to the extent of such amount.

(5) Where there are more liquidator than one, the obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.

(6) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

—————

*. Sections 17 ins. by Act 61 of 1972, sec. 13 (w.e.f. 1-4-1973).

Section 18. LIABILITY OF DIRECTORS OF PRIVATE COMPANY IN LIQUIDATION.

Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), when any private company is wound up after the commencement of this Act, and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then, every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

—————

*. Sections 18 ins. by Act 61 of 1972, sec. 13 (w.e.f. 1-4-1973).

Dowry Prohibition Act

November 30, 2014

Section 1. Short title, extent, and commencement

(1) This Act may be called the Dowry Prohibition Act, 1961.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date ¹as the Central Government may, by notification in the Official Gazette, appoint.

——————————-

1. Came into force on 1-7-1961 vide S.O. 1410, dated 20-6-1961.

Section 2. Definition of ‘dowry’.

In this Act, “dowry” means any property or valuable security given or agreed to be given either directly or indirectly.

(a) By one party to a marriage to the other party to the marriage, or (b) By the parent of either party to a marriage or by any other person, , to either party to the marriage or to any other person,

at or before ¹[or any time after the marriage] ²[in connection with the marriage of the said parties, but does not include] dower or mahr in the case of persons to whom the Muslim Personal Law (Shariat) applies.

³[***]

Explanation II.—The expression “valuable security” has the same meaning as in section 30 of the Indian Penal Code (45 of 1860).

——————————–

1. Subs. by Act 43 of 1986, sec. 2, for “or after the marriage” (w.e.f. 19-11-1986).

2. Subs. by Act 63 of 1984, sec. 2, for certain words (w.e.f. 2-10-1985).

3. Explanation I omitted by Act 63 of 1984, sec. 2 (w.e.f. 2-10-1985).

Section 3. Penalty for giving or taking dowry.

¹(1)] If any person, after the commencement of this Act, gives or takes or abets the giving or taking of dowry, he shall be punishable²with imprisonment for a term which shall not be less than ³ five years, and with fine which shall not be less than fifteen thousand rupees or the amount of the value of such dowry, whichever is more:]

Provided that the Court may, for a adequate and special reasons to be recorded in he judgment, impose a sentence of imprisonment of a term of less than ⁴ five years.]

⁵(2) Nothing is sub section (1) shall apply to, or in relation to, -

(a) Presents which are given at the time of a marriage to the bride (without any demand having been made in that behalf).

(b) Presents which are given at the time of a marriage to the bridegroom (without any demand having been made in that behalf).

Provided that such presents are entered in a list maintained in accordance with the rules made under this Act.

Provided further that where such presents are made by or on behalf of the bride or any person related to the bride, such presents are of a customary nature and the value thereof is not excessive having regard to the financial status of the person by whom, or on whose behalf, such presents are given .

—————————————

1. Section 3 re-numbered as sub-section (1) thereof by Act 63 of 1984, sec. 3 (w.e.f. 2-10-1985).

2. Subs. by Act 63 of 1984, sec. 3, for certain words (w.e.f. 2-10-1985).

3. Subs. by Act 43 of 1986, sec. 3, for certain words (w.e.f. 19-11-1986).

4. Subs. by Act 43 of 1986, sec. 3, for “six months” (w.e.f. 19-11-1986).

5. Ins. by Act 63 of 1984, sec. 3 (w.e.f. 2-10-1985).

Section 4. Penalty for demanding dowry.

¹ Penalty for demanding dowry.- If any person demands, directly orindirectly, from the parents or other relatives or guardian of a bride or bridegroom, as the case may be, any dowry, he shall be punishable with imprisonment for a term which shall not be less than six months, but which may extend to two years and with fine which may extend to ten thousand rupees.

Provided that the Court may, for a adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months.]

——————————————

1. Subs. by Act 63 of 1984, sec. 4, for section 4 (w.e.f. 2-10-1985).

Section 4A. Ban on advertisement .- If any person

(a) Offers through any advertisement in any newspaper, periodical, journal or through any other media, any share in his property or of any money or both as a share in any business or other interest as consideration fore the marriage of his son or daughter or any other relatives.

(b) Prints or published or circulates any advertisement referred to in clause (a),

he shall be punishable with imprisonment for a term which shall not be less than six months, but which may extend to five years, or with fine which may extend to fifteen thousand rupees.

Provided that the Court may, for adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a term of less than six months.

———————————-

1. Ins. by Act 43 of 1986, sec. 4 (w.e.f. 19-11-1986).

Section 5. Agreement for giving or taking dowry to be void

Any agreement for the giving or taking of dowry shall be void.

Section 6. Dowry to be for the benefit of the wife or her heirs

(1) Where any dowry is received by any person other than the woman in connection with whose marriage it is given, that person shall transfer it to the woman-

(a) if the dowry was received before marriage, within ¹[three months] after the date of marriage; or

(b) if the dowry was received at the time of or after the marriage, within ¹[three months] after the date of its receipt; or

(c) if the dowry was received when the woman was a minor, within ¹[three months] after she has attained the age of eighteen years,

and pending such transfer, shall hold it in trust for the benefit of the woman.

²[(2) If any person fails to transfer any property as required by sub-section (1) within the time limit specified therefor, ³[or as required by sub-section (3),] he shall be punishable with imprisonment for a term which shall not be less than six months, but which may extend to two years or with fine

⁴[which shall not be less than five thousand rupees, but which may extend to ten thousand rupees] or with both.]

(3) Where the woman entitled to any property under sub-section (1) dies before receiving it, the heirs of the woman shall be entitled to claim it from the person holding it for the time being:

³[Provided that where such woman dies within seven years of her marriage, otherwise than due to natural causes, such property shall,—

(a)if she has no children, be transferred to her parents; or

(b) if she has children, be transferred to such children and pending such transfer, be held in trust for such children.]

²[(3A) Where a person convicted under sub-section (2) for failure to transfer any property as required by sub-section (1) ³[or sub-section (3)] has not, before his conviction under that sub-section, transferred such property to the woman entitled thereto or, as the case may be, ⁶[her heirs, parents or children] the Court shall, in addition to awarding punishment under that sub-section, direct, by order in writing, that such person shall transfer the property to such woman or, as the case may be, ⁶[her heirs, parents or children] within such period as may be specified in the order, and if such person fails to comply with the direction within the period so specified, an amount equal to the value of the property may be recovered from him as if it were a fine imposed by such Court and paid to such woman or, as the case may be,⁶[her heirs, parents or children].

(4) Nothing contained in this section shall affect the provisions of section 3 or section 4.

————————————

1. Subs. by Act 63 of 1984, sec. 5, for “one year” (w.e.f. 2-10-1985).

2. Subs. by Act 63 of 1984, sec. 5, for sub-section (2) (w.e.f. 2-10-1985).

3.Ins. by Act 43 of 1986, sec. 5 (w.e.f. 19-11-1986).

4. Subs. by Act 43 of 1986, sec. 5, for certain words (w.e.f. 19-11-1986).

5. Ins. by Act 63 of 1984, sec. 5 (w.e.f. 2-10-1985).

6. Subs. by Act 63 of 1986, sec. 5, for “her heirs” (w.e.f. 19-11-1986).

Section 7. Cognizance of offences

¹(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),-

(a) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence under this Act.

(b) No court shall take cognizance of an offence under this Act except upon-

(i) Its own knowledge or a police report of the facts which constitute such offence, or

(ii) A complaint by the person aggrieved by the offence or a parent or other relative of such person, or by nay recognized welfare institution or organisation.

(c) It shall be lawful for a Metropolitan Magistrate or a Judicial Magistrate of the first class to pass any sentence authorised by this Act on any person convicted of an offence under this Act.

Explanation – For the purpose of this sub section, “recognized welfare institution or organisation” means a social welfare institution or organisation recognized in this behalf by the Central or State Government.

(2) Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to any offence punishable under this Act.

²(3)Notwithstanding anything contained in any law for the time being in force, a statement made by the person aggrieved by the offence shall not subject such person to a prosecution under this Act.]

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1. Subs. by Act 63 of 1984, sec. 6, for section 7 (w.e.f. 2-10-1985).

2. Ins. by Act 43 of 1986, sec. 6 (w.e.f. 19-11-1986).

Section 8. Offence to be cognizable for certain purpose and to be non bailable and non-compoundable

¹[8. Offences to be cognizable for certain purposes and to be ²[non-bailable] and non-compoundable.—(1) The Code of Criminal Procedure, 1973 (2 of 1974), shall apply to offences under this Act as if they were cognizable offences—

(a) for the purposes of investigation of such offences; and

(b) for the purposes of matters other than—

(i) matters referred to in section 42 of that Code; and

(ii) the arrest of a person without a warrant or without an order of a Magistrate.

(2) Every offence under this Act shall be ³[non-bailable] and non-compoundable.]

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1. Subs. by Act 63 of 1984, sec. 7, for section 8 (w.e.f. 2-10-1985).

2. Subs. by Act 43 of 1986, sec. 7, for “bailable” (w.e.f. 19-11-1986).

3. Subs. by Act 43 of 1986, sec. 7, for “bailable” (w.e.f. 19-11-1986).

Section 8 A. Burden of proof in certain cases

¹[8A. Burden of proof in certain cases.—Where any person is prosecuted for taking or abetting the taking of any dowry under section 3, or the demanding of dowry under section 4, the burden of proving that he had not committed an offence under these sections shall be on him.]

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1. Ins. by Act 43 of 1986, sec. 8 (w.e.f. 19-11-1986).

Section 8 B. Dowry Prohibition Officers

¹ Dowry Prohibition Officers -

(1) The State Government may appoint as many Dowry Prohibition Officers as it thinks fit and specify the areas in respect of which they shall exercise their jurisdiction and powers under this Act.

(2) Every Dowry Prohibition Officer shall exercise and perform the

following powers and functions, namely:-

(a) To see that the provisions of this Act are complied with,

(b) To prevent, as far as possible, the taking or abetting the taking of, or the demanding of, dowry,

(d) To perform such additional functions as may be assigned to him by the State Government, or as may be specified in the rule made under this Act.

(3) The State Government may, by notification in the Official Gazette, confer such powers of a police officer as may be specified in the notification on the Dowry Prohibition Officer who shall exercise such powers subject to such limitations and conditions as may be specified by rules made under this Act.

(4) The State Government may, for the purpose of advising and assisting Dowry Prohibition Officers in the efficient performance of their functions under this Act, appoint an Advisory Board consisting of not more than five social welfare workers (out of whom at least two shall be women) form the area in respect of which such Dowry Prohibition Officer exercise jurisdiction under sub section (1).

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1. Ins. by Act 43 of 1986, sec. 8 (w.e.f. 19-11-1986).

Section 9. Power to make rules

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purpose of this Act.

¹(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for -

(a) The form and manner in which, and the person by whom, any list of presents referred to in such section (2) of section 3 shall be maintained and all other matters connected therewith, and

(b) The better co-ordination of policy and action with respect to the administration of this Act.

²[(3)] 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 session for a total period of thirty days which may be comprised in one session or ³[in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid], 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.

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1. Ins. by Act 63 of 1984, sec. 8 (w.e.f. 2-10-1985).

2. Sub-section (2) renumbered as sub-section (3) thereof by Act 63 of 1984, sec. 8 (w.e.f. 2-10-1985).

3. Subs. by Act 20 of 1983, sec. 2 and Sch., for certain words (w.e.f. 15-3-1984).

Section 10. Power of State Government to make rules

(1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

(a) The additional functions to be performed by the Dowry Prohibition Officers under sub section (2) of Section 8B.

(b) Limitations and conditions subject to which a Dowry Prohibition Officer may exercise his functions under sub section (3) of section 8B.

(3) Every rule made by the State Government under this section shall be laid as soon as may be after it is made before the State Legislature.

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1. Subs. by Act 43 of 1986, sec. 9, for section 10 (w.e.f. 19-11-1986).

Appendix I

RELEVANT PROVISIONS OF INDIAN PENAL CODE, 1860 AND INDIAN EVIDENCE ACT, 1872

Indian Penal Code, 1860

304B. Dowry Death – (1) Where the death of a woman is caused by any burns or bodily injury or occurs otherwise than under normal circumstances within seven years of her marriage and it is shown that soon before her death she was subjected to cruelty or harassment by her husband or any relative of her husband for, or in connection with, any demand for dowry, such death shall be called “dowry death” and such husband or relatives shall be deemed to have caused her death.

Explanation – For the purposes of this sub section, “dowry” shall have the same meaning as in section 2 of the Dowry Prohibition Act, 1961.

(2) Whoever commits dowry death shall be punished with imprisonment for a term which shall not be less than seven years but which may extend to imprisonment for life.

Rule

THE DOWRY PROHIBITION (MAINTENANCE OF LIST OF PRESENTS TO THE BRIDE AND BRIDEGROOM ) RULES, 1985

In exercise of the powers conferred by section 9 of the Dowry Prohibition Act, 1961 (28 of 1961), the Central Government hereby makes the following rules, namely :-

1. Short title and commencement – (1) These rules may be called the Dowry Prohibition (Maintenance of Lists of Presents to the Bride and Bridegroom) Rules, 1985.

(2) They shall come into force on the 2nd day of October, 1985 being the date appointed for the coming into force of the Dowry Prohibition (Amendment) Act, 1984 (63 of 1984).

2. Rules in accordance with which lists of presents are to be maintained – (1) The list of presents which are given at the time of the marriage to the bride shall be maintained by the bride.

(2) The list of presents which are given at the time of marriage to the bridegroom shall be maintained by the bridegroom.

(3) Every list of presents referred to in sub rule (1) or sub rule (2):

(a) Shall be prepared at the time of the marriage or as soon as possible after the marriage,

(b) Shall be in writing,

(i) A brief description of each present,

(ii) The approximate value of the present

(iii) The name of the person who has given the present, and

(iv) Where the person giving the present is related to the bride or bridegroom, a description of such relationship.

(d) Shall be signed by both the bride and the bridegroom.

Explanation 1- Where the bride is unable to sign, she may affix her thumb impression in lieu of her signature after having the list read out to her and obtaining the signature, on the list, of the person who has so read out the particulars contained in the list.

Explanation 2- Where the bridegroom is unable to sign, he may affix his thumb impression in lieu of his signature after having the list read out to him and obtaining the signature, on the list of the person who has so read out the particulars contained in the list.

(4) The bride or the bridegroom may, if she or he so desires obtain on either or both of the lists referred to in sub-rule (1) or sub rule 92) the signature or signatures of any other person or persons present at the time of the marriage.

Equal Remuneration Act

November 30, 2014

Section 1. SHORT TITLE, EXTENT AND COMMENCEMENT.

(1) This Act may be called the Equal Remuneration Act, 1976.

(2) It extends to the whole of India.

(3) It shall come into force on such date ^* , not being later than three years from the passing of this Act, as the Central Government may, by notification, appoint and different dates may be appointed for different establishments or employments.

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* Came into force on 8-3-1976, vide S.O. 175(E), dated 6th March, 1976.

Section 2. DEFINITIONS.

In this Act, unless the context otherwise requires, – (a) “appropriate Government” means, -

(i) in relation to any employment carried on by or under the authority of the Central Government or a railway administration, or in relation to a banking company, a mine, oilfield or major port or any corporation established by or under a Central Act, the Central Government, and

(ii) in relation to any other employment, the State Government;

(b) “commencement of this Act” means, in relation to an establishment or employment, the date on which this Act comes into force in respect of that establishment or employment;

(c) “employer” has the meaning assigned to it in clause (f) of section 2 of the Payment of Gratuity Act, 1972 (39 of 1972);

(d) “man” and “woman” mean male and female human beings, respectively, of any age;

(e) “notification” means a notification published in the Official Gazette;

(f) “prescribed” means prescribed by rules made under this Act;

(g) “remuneration” means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled;

(h) “same work or work of a similar nature” means work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or a woman and the differences, if any, between the skill, effort and responsibility required of a man and those required of woman are not of practical importance in relation to the terms and conditions of employment :

(i) “worker” means a worker in any establishment or employment in respect of which this Act has come into force;

(j) words and expressions used in this Act and not defined but defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.

Section 3. ACT TO HAVE OVERRIDING EFFECT.

The provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the commencement of this Act, or in any instrument having effect under any law for the time being in force.

Section 4. DUTY OF EMPLOYER TO PAY EQUAL REMUNERATION TO MEN AND WOMEN WORKERS FOR SAME WORK OR WORK OF A SIMILAR NATURE.

(1) No employer shall pay to any worker, employed by him in an establishment or employment, remuneration, whether payable in cash or in kind, at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex in such establishment or employment for performing the same work or work of a similar nature.

(2) No employer shall, for the purpose of complying with the provisions of sub-section (1), reduce the rate of remuneration of any worker.

(3) Where, in an establishment or employment, the rates of remuneration payable before the commencement of this Act for men and women workers for the same work or work of a similar nature are different only on the ground of sex, then the higher (in cases where there are only two rates), or, as the case may be, the highest (in cases where there are more than two rates), of such rates shall be the rate at which remuneration shall be payable, on and from such commencement, to such men and women workers :

Provided that nothing in this sub-section shall be deemed to entitle a worker to the revision of the rate of remuneration payable to him or her with reference to the service rendered by him or her before the commencement of this Act.

Section 5. NO DISCRIMINATION TO BE MADE WHILE RECRUITING MEN AND WOMEN WORKERS.

On and from the commencement of this Act, no employer shall, while making recruitment for the same work or work of a similar nature, ¹or in any condition of service subsequent to recruitment such as promotions, training or transfer, make any discrimination against women except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force :

Provided that the provisions of this section shall not affect any priority or reservation for Scheduled Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any other class or category of persons in the matter of recruitment to the posts in an establishment or employment.

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1. Ins. by Act 49 of 1987, sec. 2 (w.e.f. 16-12-1987).

Section 6. ADVISORY COMMITTEE.

(1) For the purpose of providing increasing employment opportunities for women, the appropriate Government shall constitute one or more Advisory Committees to advise it with regard to the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf.

(2) Every Advisory Committee shall consist of not less than ten persons, to be nominated by the appropriate Government, of which one-half shall be women.

(3) In tendering its advice, the Advisory Committee shall have regard to the number of women employed in the concerned establishment or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part-time employment and such relevant factors as the Committee may think fit.

(4) The Advisory Committee shall regulate its own procedure.

(5) The appropriate Government may, after considering the advice tendered to it by the Advisory Committee and after giving to the persons concerned in the establishment or employment an opportunity to make representations, issue such directions in respect of employment of women workers, as the appropriate Government may think fit.

Section 7. POWER OF APPROPRIATE GOVERNMENT TO APPOINT AUTHORITIES FOR HEARING AND DECIDING CLAIMS AND COMPLAINTS.

(1) The appropriate Government may, by notification, appoint such officers, not below the rank of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding -

(a) complaints with regard to the contravention of any provision of this Act;

(b) claims arising out of non-payment of wages at equal rates to men and women workers for the same work or work of a similar nature; and may, by the same or subsequent notification, define the local limits within which each such authority shall exercise its jurisdiction.

(2) Every complaint or claim referred to in sub-section (1) shall be made in such manner as may be prescribed.

(3) If any question arises as to whether two or more works are of the same nature or of a similar nature, it shall be decided by the authority appointed under sub-section (1).

(4) Where a complaint or claim is made to the authority appointed under sub-section (1) it may, after giving the applicant and the employer an opportunity of being heard, and after such inquiry as it may consider necessary, direct, – (i) in the case of a claim arising out of non-payment of wages at equal rates to men and women workers for the same work or work of a similar nature, that payment be made to the worker of the amount by which the wages payable to him exceed the amount actually paid;

(ii) in the case of complaint, that adequate steps be taken by the employer so as to ensure that there is no contravention of any provision of this Act.

(5) Every authority appointed under sub-section (1) shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

(6) Any employer or worker aggrieved by any order may be an authority appointed under sub-section (1), on a complaint or claim may, within thirty days from the date of the order, prefer an appeal to such authority as the appropriate Government may, by notification, specify in this behalf, and that authority may, after hearing the appeal, confirm, modify or reverse the order appealed against and no further appeal shall lie against the order made by such authority.

(7) The authority referred to in sub-section (6) may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period specified in sub-section (6), allow the appeal to be preferred within a further period of thirty days but not thereafter.

(8) The provisions of sub-section (1) of section 33C of the Industrial Disputes Act, 1947 (14 of 1947), shall apply for the recovery of monies due from an employer arising out of the decision of an authority appointed under this section.

Section 8. DUTY OF EMPLOYERS TO MAINTAIN REGISTERS.

On and from the commencement of this Act, every employer shall maintain such registers and other documents in relation to the workers employed by him as may be prescribed.

Section 9. INSPECTORS.

(1) The appropriate Government may, by notification, appoint such persons as it may think fit to be Inspectors for the purpose of making an investigation as to whether the provisions of this Act, or the rules made there under, are being complied with by employers, and may define the local limits within which an Inspector may make such investigation.

(2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

(3) An Inspector may, at any place within the local limits of his jurisdiction, -

(a) enter, at any reasonable time, with such assistance as he thinks fit, any building, factory, premises or vessel;

(b) require any employer to produce any register, muster-roll or other documents relating to the employment of workers, and examine such documents;

(c) take on the spot or otherwise, the evidence of any person for the purpose of ascertaining whether the provisions of this Act are being, or have been, complied with;

(d) examine the employer, his agent or servant or any other person found in charge of the establishment or any premises connected therewith or any person whom the Inspector has reasonable cause to believe to be, or to have been a worker in the establishment;

(e) make copies, or take extracts from, any register or other document maintained in relation to the establishment under this Act.

(4) Any person required by an Inspector to produce any register or other document or to give any information shall comply with such requisition.

Section 10. PENALTIES.

(1) If after the commencement of this Act, any employer, being required by or under the Act, so to do -

(a) omits or fails to maintain any register or other document in relation to workers employed by him, or

(b) omits or fails to produce any register, muster-roll or other document relating to the employment of workers, or

(c) omits or refuses to give any evidence or prevents his agent, servant, or any other person in charge of the establishment, or any worker, from giving evidence, or

(d) omits or refuses to give any information, he shall be punishable¹ with simple imprisonment for a term which may extend to one month or with fine which may extend to ten thousand rupees or with both.

(2) If, after the commencement of this Act, any employer – (a) makes any recruitment in contravention of the provisions of this Act, or

(b) makes any payment of remuneration at unequal rates to men and women workers, for the same work or work of a similar nature, or

(d) omits or fails to carry out any direction made by the appropriate Government under sub-section (5) of section 6, he shall be punishable ²with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with imprisonment for a term which shall be not less than three months but which may extend to one year or with both for the first offence, and with imprisonment which may extend to two years for the second and subsequent offences.

(3) If any person being required so to do, omits or refuses to produce to an Inspector any register or other document or to give any information, he shall be punishable with fine which may extend to five hundred rupees.

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1. Subs. by Act 49 of 1987, sec. 3, for “with fine which may extend to one thousand rupees” (w.e.f. 16-12-1987).

2. Subs. by Act 49 of 1987, sec. 3, for “with fine which may extend to five thousand rupees” (w.e.f. 16-12-1987).

Section 11. 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 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 director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be 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 individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

Section 12. COGNIZANCE AND TRIAL OF OFFENCES.

¹[12. Cognizance and trial of offences. (1) No court inferior to that of a metropolitan magistrate or judicial Magistrate of the first class shall try any offence punishable under this Act.

(2) No court shall take cognizance of an offence punishable under this Act except upon -

(a) its own knowledge or upon a complaint made by the appropriate Government or an officer authorised by it in this behalf, or

(b) a complaint made by the person aggrieved by the offence or by any recognised welfare institution or organisation.

Explanation : For the purposes of this sub-section “recognised welfare institution or organisation” means a social welfare institution or organisation recognised in this behalf by the Central or State Government.

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1. Subs. by Act 49 of 1987, sec. 4, for section 12 (w.e.f. 16-12-1987).

Section 13. POWER TO MAKE RULES.

-(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the manner in which complaint or claim referred to in sub-section (1) of section 7 shall be made;

(b) registers and other documents which an employer is required under section 8 to maintain in relation to the workers employed by him;

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 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.

Section 14. POWER OF CENTRAL GOVERNMENT TO GIVE DIRECTIONS.

The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.

Section 15. ACT NOT TO APPLY IN CERTAIN SPECIAL CASES.

Nothing in this Act shall apply -

(a) to cases affecting the terms and conditions of a woman’s employment in complying with the requirements of any law giving special treatment to women, or

(b) to any special treatment accorded to women in connection with -

(i) the birth or expected birth of a child, or

(ii) the terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death.

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1. Subs. by Act 49 of 1987, sec. 5, for section 15 (w.e.f. 16-12-1987).

Section 16. POWER TO MAKE DECLARATION.

Where the appropriate Government is, on a consideration of all the circumstances of the case, satisfied that the differences in regard to the remuneration, or a particular species of remuneration, of men and women workers in any establishment or employment is based on a factor other than sex, it may, by notification, make a declaration to that effect, and any act of the employer attributable to such a difference shall not be deemed to be contravention of any provision of this Act.

Section 17. POWER TO REMOVE DIFFICULTIES.

If any difficulty arises in giving effect to the provisions of this Act the Central Government may, by notification, make any order, not inconsistent with the provisions of this Act, which appears to it to be necessary for the purpose of removing the difficulty:

Provided that every such order shall, as soon as may be after it is made, be laid before each House of Parliament.

Section 18. REPEAL AND SAVING.

(1) The Equal Remuneration Ordinance, 1975 (12 of 1975), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed (including any notification, nomination, appointment, order or direction made there under) shall be deemed to have been done or taken under the corresponding provisions of this Act as if this Act were in force when such thing was done or action was taken.

Immoral Traffic Prevention Act

November 30, 2014

Chapter I: PRELIMINARY

Section 1. Short title, extent and commencement.

(1) This Act may be called The Immoral Traffic (Prevention) Act, 1956.

(2) It extends to the whole of India.

(3) This section shall come into force at once; and the remaining provisions of this come into force on such date as the Central Government may, by notification in the official Gazette appoint.

Section 2. Definitions.

In this Act, unless the context otherwise requires-

(a) “Brother” includes any house, room, conveyance or place, or any portion of any house, room, conveyance or place, which is used for purposes of sexual exploitation or abuse for the gain of another person or for the mutual gain of two or more prostitutes;

(aa) “Child’ means a person who has not completed the age of sixteen years;

(b) “Corrective institution” means an institution, by whatever name called (being an institution established or licenced as such under Section 21), in which persons, who are in need of correction, may be detained under this Act, and includes a shelter where under trials may be kept in pursuance of this Act;

(c) “Magistrate” means a Magistrate specified in the second column of the Schedule as being competent to exercise the powers conferred by the section in which the expression occurs and which is specified in the first column of the Schedule;

(ca) “Major” means a person who has completed the age of eighteen years;

(cb) “Minor” means a person who has completed the age of sixteen years but has not completed the age of eighteen years;

(d) “Prescribed’ means prescribed by rules made under this Act;

(e) ¹[* * * * * *].

(f) “Prostitution” means the sexual exploitation or abuse of persons for commercial purposes, and the expression “prostitute” shall be construed accordingly;

(g) “Protective home” means an institution, by whatever name called (being an institution established or licenced as such under Section 21), in which persons who are in need of care and protection, may be kept under this Act and where appropriate technically qualified persons, equipments and other facilities have been provided but does not include, -

(i) A shelter where undertrials may be kept in pursuance of this Act, or

(ii) A corrective institution;

(h) “Public place” means any place intended for use by, or accessible to, the public and includes any public conveyance;

(i) “Special police officer” means a police officer appointed by or on behalf of the State Government to be in charge of police duties within a specified area for the purpose of this Act;

(j) “Trafficking police officer” means a police officer appointed by the Central Government under sub-section (4) of Section 13.

1. Sub-section (e) emitted by Act No 46 of 1978.

Section 2-A. Rule of construction regarding enactments not extending to Jammu and Kashmir.

Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.

Section 3. Punishment for keeping a brothel or allowing premises to be used as a brothel.

(1) Any person who keeps or manages, or acts or assists in the keeping or management of, a brothel, shall be punishable on first conviction with rigorous imprisonment for a term of not less than one year and not more than three years and also with fine which may extend to two thousand rupees and in the event of a second or subsequent to conviction with rigorous imprisonment for a term of not less than two years and not more than five years and also with fine which may extend to two thousand rupees.

(2) A any person who, -

(a) Being the tenant, lessee, occupier or person in charge of any premises, uses, or knowingly allows any other person to use, such premises or any part thereof as a brothel, or

(b) Being the owner, lessor or landlord of any premises or the agent of such owner, lessor or landlord, lets the same or any part thereof with the knowledge that the same or any part thereof is intended to be used as a brothel, or is wilfully a party to the use of such premises or any part thereof as a brothel, shall be punishable on first conviction with imprisonment for a term which may extend to two years and with fine which fine which may extend to two thousand rupees and in the event of a second or subsequent conviction, with rigorous imprisonment for a term which may extend to five years and also with fine.

(2-A) For the purposes of sub-section (2), it shall be presumed, until the contrary is proved, that any person referred to in clause (a) or clause (b) of that subsection, is knowingly allowing the premises or any part thereof to be used as a brothel or, as the case may be, has knowledge that the premises or any part thereof are being used as a brothel, if, -

(a) A report is published in a newspaper having circulation in the area in which such person resides to the effect that the premises or any part thereof have been found to be used for prostitution as a result of a search made under this Act; or

(b) A copy of the list of all things found during the search referred to in clause (a) is given to such person.

(3) Notwithstanding any thing contained in any other law for the time being in force, on conviction of any person referred to in clause (a) or clause (d) of sub-section (2) of any offence under that sub-section in respect of any premises or any part thereof, any lease or agreement under which such premises have been leased out or held or occupied at the time of the commission of the offence, shall become void and inoperative with effect from the date of the said conviction.

Section 4. Punishment for living on the earnings of prostitution.

(1) Any person over the age of eighteen years who knowingly lives, wholly or in part, on the earnings of the prostitution of any other person shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to one thousand rupees, or with both, and where such earnings relate to the prostitution of a child or a minor, shall be punishable with imprisonment for a term of not less than seven years and not more than ten years.

(2) Where any person over the age of eighteen years is proved, -

(a) To be living with, or to be habitually in the company of, a prostitute; or

(b) To have exercised control, direction or influence over the movements of a prostitute in such a manner as to show that such person is aiding abetting or compelling her prostitution; or

(c) To be acting as a tout or pimp on behalf of a prostitute, it shall be presumed, until the contrary is proved, that such person is knowingly living on the earnings of prostitution of another person within the meaning of sub-section (1).

Section 5. Procuring, inducing or taking person for the sake of prostitution.

(1) Any person who-

(a) Procures or attempts to procure a person whether with or without his/her consent, for the purpose of prostitution; or

(b) Induces a person to go from any place, with the intent that he/she may for the purpose of prostitution become the inmate of, or frequent, a brothel; or

(c) Takes or attempts to take a person or causes a person to be taken, from one place to another with a view to his/her carrying on, or being brought up to carry on prostitution; or

(d) Causes or induces a person to carry on prostitution; shall be punishable on conviction with rigorous imprisonment for a term of not less than three years and not more than seven years and also with fine which may extend to two thousand rupees, and if any offence under this sub-section is committed against the will of any person, the punishment of imprisonment for a term of seven years shall extend to imprisonment for a term of fourteen years:

Provided that if the person in respect of whom an offence committed under this sub-section, -

(i) Is a child, the punishment provided under this sub-section shall extend to rigorous imprisonment for a term of not less than seven years but may extend to life; and

(ii) Is a minor; the punishment provided under this sub-section shall extend to rigorous imprisonment for a term of not less than seven years and not more than fourteen years.

¹(2) [* * * * * *]

(3) An offence under, this section shall he triable, -

(a) In the place from which a person is procured, induced to go, taken or caused to be taken or from which an attempt to procure or taken such persons made; or

(b) In the place to which she may have gone as a result of the inducement or to which he/she is taken or caused to be taken or an attempt to take him/her is made.

1. Sub-sec. (2) emitted by Act No. 44 of 1986.

Section 6. Detaining a person in premises where prostitution is carried on.

(1) Any person who detains any other person, whether with or without his consent,-

(a) In any brothel, or

(b) In or upon any premises with intent that such person may have sexual intercourse with a person, who is not the spouse of such person, shall he punishable on conviction, with imprisonment of either description for a term which shall not be less than seven years but which may be for life or for a term which may extend to ten years and shall also be liable to fine:

Provided that the court may for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term, which may be less than seven years.

(2) Where any person is found with a child in a brothel, it shall be presumed, unless the contrary is proved, that he has committed an offence under sub-section (1).

(2-A) Where a child or minor found in a brothel, is, on medical examination, detected to have been sexually abused, it shall be presumed unless the contrary is proved, that the child or minor has been detained for purposes of prostitution or, as the case may be, has been sexually exploited for commercial purposes.

(3) A person shall be presumed to detail a person in a brothel or in upon any premises for the purpose of sexual intercourse with a man other than her lawful husband, if such person, with intent to compel or induce her to remain there,

(a) Withholds from her any jewellery, wearing apparel, money or other property belonging to her, or

(b) Threatens her with legal proceedings if she takes away with her any jewellery, wearing apparel, money or other property lent or supplied to her by or by the direction of such person.

(4) Notwithstanding any law to the contrary, no suit, prosecution or other legal proceeding shall lie against such woman or girl at the instance of the person by whom she has been detained, for the recovery of any jewellery, wearing apparel or other property alleged to have been lent or supplied to or for such woman or girl or to have been pledged by such woman or girl or for the recovery of any money alleged to be payable by such woman or girl.

Section 7. Prostitution in or in the vicinity of public place.

(1) Any person who carries on prostitution and the person with whom such prostitution is carried on, in any premises:

(a) Which are within the area or areas, notified under subjection (3), or

(b) Which are within a distance of two hundred meters of any place of public religious worship, educational institution, hotel, hospital, nursing home or such other public place of any kind as may be notified in this behalf by the Commissioner of Police or Magistrate in the manner prescribed, shall be punishable with imprisonment for a term which may extend to three months.

(I-A) Where an offence committed under sub-section (1) is in respect of a child or minor, the person committing the offence shall be punishable with imprisonment of either description for a term which not be less than seven years but which may be for life or for a term which may extend to ten years and shall also be liable to fine:

Provided that the Court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than seven years.

(2) Any person who:

(a) Being the keeper of any public place knowingly permits prostitutes for purposes of their trade to resort to or remain in such place; or

(b) Being the tenant, lessee, occupier or person in charge of any premises referred to in sub-section (1) knowingly permits the same or any part thereof to be used for prostitution; or

(c) Being the owner, lessor or landlord of any premises referred to in sub-section (1), or the agent of such owner, lessor or landlord, lets the same or any part thereof with the knowledge that the same or any part thereof may be used for prostitution, or is wilfully a party to such use. Shall be punishable on first conviction with imprisonment for a, term which may extend to three months, or with fine which may extend to two hundred rupees, or with both, and in the event of a second or subsequent conviction with imprisonment for a term which may extend to six months and also with fine, which may extend to two hundred rupees, and if the public place or premises happen to be a hotel, the licence for carrying on the business of such hotel under any law for the time being in force shall also be liable to be suspended for a period of not less than three months but which may extend to one year:

Provided that if an offence committed under this sub-section is in respect of a child or minor in a hotel, such licence shall also be liable to be cancelled.

Explanation. -For the purposes of this subjection, “hotel” shall have the meaning as in clause (6) of Section 2 of the Hotel-Receipts Tax Act, 1980 (54 of 1980).

(3) The State Government may, having regard to the kinds of persons frequenting any area or areas in the State, the nature and the density of population therein and other relevant considerations, by notification in the official Gazette, direct that the prostitution shall not be carried on in such area or areas as may be specified in the notification.

(4) Where the notification is issued under Sub-section (3) in respect of any area or areas, the State Government shall define the limits of such area or areas in the notification with reasonable certainty.

(5) No such notification shall be issued so as to have effect from a date earlier than the expiry of a period of ninety days after the date on which it is issued.6. Detaining a person in premises where prostitution is carried on.

(1) Any person who detains any other person, whether with or without his consent,-

(a) In any brothel, or

Provided that the court may for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term, which may be less than seven years.

(2) Where any person is found with a child in a brothel, it shall be presumed, unless the contrary is proved, that he has committed an offence under sub-section (1).

(a) Withholds from her any jewellery, wearing apparel, money or other property belonging to her, or

(b) Threatens her with legal proceedings if she takes away with her any jewellery, wearing apparel, money or other property lent or supplied to her by or by the direction of such person.

Section 8. Seducing or soliciting for purpose of prostitution.

Whoever, in any public place or within sight of, and in such manner as to be seen or heard from, any public place, whether from within any building or house or not:

(a) By words, gestures, willful exposure of her person (whether by sitting by a window or on the balcony of a building or house or in any other way), or otherwise tempts or endeavour to tempt, or attracts or endeavour to attract the attention of, any person for the purpose of prostitution; or

(b) Solicits or molests any person, or loiters, or acts in such manner as to cause obstruction or annoyance to persons residing nearby or passing by such public place or to offend against public decency, for the purpose of prostitution,

Shall be punishable on first conviction with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both, and in the event of a second or subsequent conviction, with imprisonment for a term which may extend to one year, and also with fine which may extend to five hundred rupees:

Provided that where an offence under this Section is committed by a man he shall be punishable with imprisonment for a period of not less than seven days but which may extend to three months.

Section 9. Seduction of a person in custody.

Any person who having the custody, charge or care of or in a position of authority over any person causes or aids or abets the seduction for prostitution of that shall be punishable on conviction with imprisonment of either description for a term which shall not be less than seven years but which may be for life or for a term which may extend to ten years and shall also be liable to fine:

Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than seven years.

¹[(2) * * * * * * *]

1. Sub-section (2) emitted by Act No. 44 of 1986.

Section 10. Omitted.

¹[10. * * * * * * *]

1. Sec. 10 omitted by Act No. 44 of 1986.

Section 11. Notification of address of previously convicted offenders.

(1) When any person having been convicted-

(a) By a court in India of an offence punishable under this Act or punishable under Section 363, Section 365, Section 366, Section 366-A, Section 366-B, Section 367, Section 368, Section 370, Section 371, Section 372 or Section 373 of the Indian Penal Code (45 of 1860), with imprisonment for a term of two years or up wards; or

(b) By a court or tribunal in any other country of an offence which would, if committed in India, have been punishable under this Act, or under any of the aforesaid sections with imprisonment for a like term, is within a period of five years after release from prison, again convicted of any offence Punishable under this Act or under of those section with, imprisonment for a term of two years or upwards by a court, such court may, if it thinks fit, at the time of passing the sentence of imprisonment on such person, also order that his residence, and any change of, or absence from, such residence, after release, be notified according to rules made under Section 23 for a period not exceeding five years from the date of expiration of that sentence.

(2) If such conviction is set-aside on appeal or otherwise, such order shall become void.

(3) All order under this section may also be made by an Appellate Court or by the High Court when exercising its powers of revision.

(4) Any person charged with a breach of any rule referred to in sub-section

(1) may be tried by a Magistrate of competent jurisdiction in the District in which the place last notified as his residence is situated.

Section 12. Omitted

¹[12. * * * * * * ]

1. Section 12 omitted by Act No. 44 of 1986.

Section 13. Special police officer and advisory body.

(1) There shall be for each area to be specified by the State Government in this behalf a special police officer appointed by or on behalf of that government for dealing with offences under this Act in that area.

(2) The special police officer shall not he below the rank of an inspector of Police.

(2-A) The District Magistrate may, if he considers it necessary or expedient so to do, confer upon any retired police or military officer all or any of the powers conferred by or under this Act on a special police officer, with respect to particular cases or classes of cases or to cases generally:

Provided that no such power shall be conferred on, -

(a) A retired police officer unless such officer, at the time of his, retirement, was holding a post not below the rank of an inspector;

(b) A retired military officer unless such officer, at the time of his retirement, was holding a post not below the rank of a commissioned officer.

(3) For the efficient discharge of his functions in relation to offences under this Act, -

(a) The special police officer of an area shall be assisted by such number of subordinate police officers (including women police officers wherever practicable) as the State Government may think fit; and

(b) The State Government may associate with the special police officer a nonofficial advisory body consisting of not more than five leading social welfare workers of that area (including women social welfare workers wherever practicable) to advise him on questions of general importance regarding the working of this Act.

(4) The Central Government may, for the purpose of investigating any offence under this Act or under any other law for the time being in force dealing with sexual exploitation of persons and committed in more than one State appoint such number of police officers as trafficking police officers and they shall exercise all the powers and discharge all the functions as are exercisable by special police officers under this Act with the modification that they shall exercise such powers and discharge such functions in relation to the whole of India.

Section 14. Offences to be cognizable.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under this Act shall be deemed to be a cognizable offence within the meaning of that Code:

Provided that, notwithstanding anything contained in that Code, -

(i) Arrest without warrant may be made only by the special police officer or under his direction or guidance, or subject to his prior approval;

(ii) When the special police officer requires any officer subordinate to him to arrest without warrant otherwise than in his presence any person for an offence under this Act, he shall give that subordinate officer an order in writing, specifying the person to be arrested and the offence for which the arrest is being made; and the latter officer before arresting the person shall inform him of the substance of the, order and, on being required by such person, show him the order;

(iii) Any police officer not below the rank of sub-inspector specially authorised by the special police officer may, if he has reason to believe that on account of delay involved in obtaining the order of the special police officer, any valuable evidence relating to any offence under this Act is likely to be destroyed or concealed, or the person who has committed or is suspected to have committed the offence is likely to escape, or if the name and address of such a person is unknown or there is reason to suspect that a false name or address has been given, arrest the person concerned without such order, but in such a case he shall report, as soon as may be, to the special police officer the arrest and the circumstances in which the arrest was made.

Section 15. Search without warrant.

(1) Notwithstanding anything contained in any other law for the time being in force, whenever the special police officer or the trafficking police officer as the case may be, has reasonable grounds for believing that an offence punishable under this Act has been or is being committed in respect of a person living in any premises, and that search of the premises with warrant cannot be made without undue delay, such officer may, after recording the grounds of his belief, enter and search such premises without a warrant.

(2) Before making a search under subsection (1), the special police officer or the trafficking police officer, as the case may be shall call upon two or more respectable inhabitants (at least one of whom shall be a woman) of the locality in which the place to be searched is situate, to attend and witness the search and may issue an order in writing to them or any of them so to do:

Provided that the requirement as to the respectable inhabitants being from the locality in which the place to be searched is situate shall not apply to a woman required to attend and witness the search.

(3) Any person who, without reasonable cause, refuses or neglects, to attend and witness a search under this section, when called upon to do so by an order in writing delivered or, tendered to him, shall be deemed to have committed an offence under Section 187 of the Indian Penal Code (45 of 1860).

(4) The special police officer or the trafficking police officer, as the case may be, entering any premises under sub-section (1) shall be entitled to remove therefrom all the persons found therein.

(5) The special police officer or the trafficking police officer, as the case may be, after removing person under subsection (4) shall forthwith produce her before the appropriate Magistrate.

(5-A) Any person who is produced before a Magistrate under sub-section (5), shall be examined by a registered medical practitioner for the purposes of determination of the age of such person, or for the detection of any injuries as a result of sexual abuse or for the presence of any sexually transmitted diseases.

Explanation. -In this sub-section, “registered medical practitioner” has the same meaning as in the Indian Medical Council Act, 1956 (102 of 1956).

(6) The special police officer or the trafficking police officer, as the case may be, and other persons taking part in, or attending, and witnessing a search shall not be liable to any civil or criminal proceeding against them in respect of anything lawfully done in connection with, or for the purpose of, the search.

(6-A) The special police officer or the trafficking police officer, as the case may be, making a search under this section shall be accompanied by at least two women police officers, and where any woman or girl removed under sub-section (4) is required to be interrogated it shall be done by woman police officer and if no woman police officer is available, the interrogation shall be done only in the presence of a lady member of a recognized welfare institution or organization.

Explanation. -For the purposes of this sub-section and Section 17-A, “recognised welfare institution or Organisation” means such institution or Organisation, as may be recognized in this behalf by the State Government.

(7) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall, so far as may be, apply to any search under this section as they apply to any search made under the authority of a warrant issued under 94 of the said Code.

Section 16. Rescue of person.

(1) Where a Magistrate has reason to believe from information received from the police or from any other person authorised by State Government in this behalf or otherwise, that any person is living, or is carrying, or is being made to carry on, prostitution in a brothel, he may direct a police officer not below the rank of a sub-inspector to enter such brothel, and to remove therefrom such person and produce her before him.

(2) The police officer, after removing the person shall forthwith produce her before the Magistrate issuing the order.

Section 17. Intermediate custody, of persons removed under Section 15 or rescued under Section 16.

(1) When the special police officer removing a person under subsection (4) of Section 15 or a police officer rescuing a person under sub-section (1) of Section 16, is for any reason unable to produce her before the appropriate Magistrate as required by sub-section (5) of Section 15, or before the Magistrate issuing the order under sub-section (2) of Section 16, he shall forthwith produce her before the nearest Magistrate of any class, who shall pass such orders as he deems proper for her safe custody until she is produced before the appropriate Magistrate, or, as the case may be, the Magistrate issuing the order:

Provided that no person shall be,

(i) Detained in custody under this sub-section for a period exceeding tell days from the date of the order under this sub-section; or

(ii) Restored to or placed in the custody of a person who may exercise a harmful influence over her.

(2) When the person is produced before the appropriate Magistrate under subsection (5) of Section 15 or the Magistrate under sub-section (2) of Section 16, he shall, after giving her an opportunity of being heard, cause an inquiry to be made as to the correctness of the information received under subsection (1) of Section 16, the age, character and antecedents of the person and the suitability of her parents, guardian or husband for taking charge of her and the nature of the influence which the conditions in her home are likely to have on her if she is sent home, and, for this purpose, he may direct a Probation officer appointed under the Probation of Offenders Act, 1958, to inquire into the above circumstances and into the personality of the person and the prospects of her rehabilitation.

(3) The Magistrate may, while an inquiry is made into a case under sub-section (2), pass such orders, as he deems proper for the safe custody of the person:

Provided that where a person rescued under Section 16 is a child or minor, it shall be open to the magistrate to place such child or minor in any institution established or recognised under any Children Act for the time being in force in any State for the safe custody of children:

Provided further that no person shall be kept in custody for this purpose for a period exceeding three weeks from the date of such an order, and no person shall be kept ill the custody of a person likely to have a harmful influence over her.

(4) Where the Magistrate is satisfied, after making an inquiry as required under sub-section (2), -

(a) That the information received is correct; and

(b) That she is in need of care and protection,

He may, subject to the provisions of subsection (5), make an order that such person be detained for such period, being not less than one year and not more than three, as may be specified in the order, in a protective home, or in such other custody, as he shall, for reasons to be recorded in writing, consider suitable:

Provided that such custody shall not be that of a person or body of persons of a religious persuasion different from that of the person, and that those entrusted with the custody of the person, including the persons in charge of a protective home; may be required to enter into a bond which may, where necessary and feasible contained undertaking based on directions relating to the proper care, guardianship, education, training and medical and psychiatric treatment of the person as well as supervision by a person appointed by the Court, which will be in force for a period not exceeding three years.

(5) In discharging his functions under sub-section (2), a Magistrate may summon a panel of five respectable persons, three of whom shall, wherever practicable, be women, to assist him; and may, for this purpose, keep a list of experienced social welfare workers, particularly women social welfare workers, in the field of suppression of immoral traffic in persons.

(6) An appeal against an order made under sub-section (4) shall lie to the Court of Session whose decision on such appeal shall be final.

Section 17-A. Conditions to Be Observed Before Placing Persons Rescued Under Section 16 To Parents Or Guardians.

Notwithstanding anything contained in sub-section (2) of Section 17, the magistrate making an inquiry under Section 17, may, before passing all order for handing over any person rescued under Section 16 to the parents, guardian or husband, satisfy himself about the capacity or genuineness of the parents, guardian or husband to keep such person by causing an investigation to be made by a recognized welfare institution or Organisation.

Section 18. Closure of brothel and eviction of offenders from the premises.

(1) A Magistrate may, on receipt of information from the police or otherwise, that any house, room, place or any portion thereof within a distance of two hundred meters of any public place referred to in sub-section (1) of Section 7 is being run or used as a brothel by any person, or is being used by prostitutes for carrying on their trade, issue notice on the owner, lessor or landlord or such house, room, place or portion or the agent of the owner, lessor or landlord or on the tenant, lessee, occupier of, or any other person in charge of such house, room, place, or portion, to show cause within seven days of the receipt of the notice why the same should not he attached for improper use thereof, and if, after hearing the person concerned, the Magistrate is satisfied that the house, room, place or portion is being used as a brothel or for carrying on prostitution, then the Magistrate may pass orders,-

(a) Directing eviction of the occupier within seven days of the passing of the order from the house, room, place, or portion;

(b) Directing that before letting it out during the period of one year or in a case where a child or minor has been found in such house, room, place or portion during a search under Section 15, during the period of three years, immediately after the passing of the order, the owner, lessor or landlord or the agent of the owner, lessor or landlord shall obtain the previous approval of the Magistrate;

Provided that, if the Magistrate finds that the owner, lessor or landlord as well as the agent of the owner, lessor or landlord, was innocent of the improper user of the house, room, place, or portion, he may cause the same to be restored to the owner, lessor or landlord or the agent of the owner, lessor landlord, with a direction that the house, room, place or portion shall not be leased out, or otherwise given possession of, to or for the benefit of the person who was allowing the improper use therein.

(2) A court convicting a person of any offence under Section 3 or Section 7 may pass orders under sub-section (1), without further notice to such person to show cause as required in that sub-section.

(3) Orders passed by the Magistrate or court under sub-section (1) or sub-section (2), shall not be subject to appeal and shall not be stayed or set aside by the order of any court, civil or criminal, and the said orders shall cease to have validity after the expiry of one year or three years, as the case may be:

Provided that where a conviction under Section 3 or Section 7 is set aside on an appeal on the ground that such house, room, place, or any portion thereof is not being run or uses as a brothel or is not being used by prostitutes for carrying on their trade, any order passed by the trial court under sub-section (1) shall also be set aside. (4) Notwithstanding anything contained in any other law for the time being in force, when a Magistrate passes an order under subsection (1), or a Court passes all order under sub-section (2), any lease or a agreement under which the house, room, place or portion is occupied at the time shall become void and inoperative.

(5) When an owner, lessor or landlord, or the agent of such owner, lessor or landlord fails to comply with a direction given under clause (b) of sub-section (1) he shall be punishable with fine which may extend to five hundred rupees or when he fails to comply with a direction under the proviso to that subsection, he shall be deemed to have committed an offence under clause (b) of sub-section (2), of Section 3 or clause (c) of sub-section (2) of Section 7, as the case may be, and punished accordingly.

Section 19. Application for being kept in a protective home or provided care and protection by court,

(1) A person who is carrying oil, or is being made to carry oil prostitution, may make all applications, to the Magistrate within the local limits of whose jurisdiction she is carrying on, or is being made to carry on prostitution, for an order that she may be-

(a) Kept in a protective home, or

(b) Provided care and protection by the court in the manner specified in subsection (3).

(2) The Magistrate may pending inquiry under sub-section (3) direct that the person be kept in such custody, as he may consider proper, having regard to the circumstances of the case.

(3) If the Magistrate after hearing the applicant and making such inquiry as he may consider necessary, including an inquiry by a Probation Officer appointed under the Probation of Offender Act, 1958, (20 of 1958) into the personality, conditions of home and prospects of rehabilitation of the applicant, is satisfied that an order should be made under this section, he shall for reasons to be recorded, make an order that the applicant to be kept:

(i) In a protective home, or

(ii) In a corrective institution, or

(iii) Under the supervision of a person appointed by the Magistrate for such period as may be specified in the order.

Section 20. Removal of prostitute from any place.

(1) A Magistrate on receiving information that any person residing in or frequenting any place within the local limits of his jurisdiction is a prostitute, may record the substance of the information received and issue a notice to such person requiring her to appear before the Magistrate and show cause why she should not be required to remove herself from the place and be prohibited form reentering it.

(2) Every notice issued under subsection (1) shall be accompanied by a copy of the record aforesaid and the copy shall be served along with the notice on the person against whom the notice is issued.

(3) The Magistrate shall, after the service of the notice referred to in subsection (2), proceed to inquire into the truth of the information received, and after giving the person an opportunity of adducing evidence; take such further evidence as he thinks fit and if upon such inquiry it appears to him that such person is a prostitute and that it is necessary in the interest of the general public that such person should be required to remove herself therefrom and be prohibited from re-entering the same, the Magistrate shall, by order in writing communicate to the person in the manner specified therein, require her after a date (to be specified in the order) which shall not be less than seven days from the date of the order, to remove herself from the place to such place whether within or without the local limits of his jurisdiction, by such route or routes and within such time as may be specified in the order and also prohibit her from reentering the place without the permission in writing of the Magistrate having jurisdiction over such place.

(4) Whoever, -

(a) Fails to comply with an order issued under this section, within the period specified therein, or whilst an order prohibiting her from re-entering a place without permission is in force, re-enters the place without such permission, or

(b) Knowing that any person has, under this section, been required to remove herself from the place and has not obtained the requires site permission to re-enter it, harbours or conceals such person in the place, shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing offence with an additional fine which may extend to twenty rupees for every day after the first during which she or he has persisted in the offence.

Section 21. Protective homes.

(1) The State Government may in its discretion establish as many protective homes and corrective institutions under this Act as it thinks fit and such homes and institutions when established shall be maintained in such manner as may be prescribed.

(2) No person or no authority other than the State government shall, after the commencement of this Act, establish or maintain any protective home or corrective institution except under and in accordance with the conditions of, a licence issued under this section by the State Government.

(3) The State Government may, on application made to it in this behalf by a person or authority, issue to such person or authority a licence in the prescribed form for establishing and maintaining or as the case may be, for maintaining a protective home or corrective institution and a licence so issued may contain such conditions as the State Government may think fit to impose in accordance with the rules made under this Act:

Provided that any such condition may require that the management of the protective home or corrective institution shall, wherever practicable, be entrusted to women:

Provided further that a person or authority maintaining any protective home at the commencement of this Act shall be allowed a period of six months from such commencement to make an application for such licence:

Provided also that a person or authority maintaining any corrective institution at the commencement of the Suppression of Immoral Traffic in Women and Girls (Amendment) Act, 1978, shall be allowed a period of six months from such commencement to make an application for such licence.

(4) Before issuing a licence, the State Government may require such officer or authority as it may appoint for this purpose, to make a full and complete investigation in respect of the application received in this behalf and report to it the result of such investigation and in making any such investigation the officer or authority shall allow such procedure as may be prescribed.

(5) A licence, unless sooner revoked, shall remain in force for such period as may be specified in the licence and may, on application made in this behalf at least thirty days before the date of its expiration, be renewed for a like period.

(6) No licence issued or renewed under this Act shall be transferable.

(7) Where any person or authority to whom a licence has been granted under this Act or any agent or servant of such person or authority commits a breach of any of the conditions thereof or any of the provisions of this Act or of any of the rules made under this Act, or where the State Government is not satisfied with the conditions, management or superintendence or any protective home or corrective institution the State Government may, without prejudice to any other penalty which may have been incurred under this Act, for reasons to be recorded, revoke the licence by order in writing:

Provided that no such order shall be made until an opportunity is given to the holder of the licence to show cause why the licence shall not be revoked

(8) Where a licence in respect of a protective home or corrective institution has been revoked under the foregoing subsection such protective home or corrective institution shall cease to function from the date of, such revocation.

(9) Subject to any rule that may be made in this behalf the State Government may also vary or amend any licence issued or renewed under this Act.

(9-A) The State Government or any authority authorised by it in this behalf may, subject to any rules that may be made in this behalf, transfer an inmate of a protective home to another protective home or to a corrective institution or an inmate of a corrective institution to another corrective institution or to a protective home, where such transfer is considered desirable having regard to the conduct of the person to be transferred, the kind of training to be imparted and other circumstances of the case:

Provided that, -

(i) No person who is transferred under this sub-section shall be required to stay in the home or institution to which she is transferred for a period longer than she was required to stay in the home or institution from which she was transferred;

(ii) Reasons shall be recorded for every order of transfer under this subsection (10) whoever establishes or maintains a protective home or corrective institution except in accordance with the provisions of this section, shall be punishable in the case of a first offence with fine which may extend to one thousand rupees and in the case of second or subsequent offence with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both.

Section 21-A. Production of records.

Every person or authority who is licensed- under subsection (3) of Section 21 to establish or maintain, or, as the case may be, for maintaining, a protective home or corrective institution

Section 22. Trials.

No Court, inferior to that of a Metropolitan Magistrate or a judicial magistrate of the first class, shall try any offence under Section 3, Section 4, Sectioii.5, Section 6, Section 7 or Section 8.

Section 22-A. Power to establish special Courts.

(1) If the State Government is satisfied that it is necessary for the purpose of providing for speedy trial of offences under this Act in any district or metropolitan area, it may, by notification in the official Gazette and after consultation with the High Court, establish one or more Courts of Judicial Magistrates of the first class, or, as the case may be, Metropolitan Magistrate, in such district or metropolitan area.

(2) Unless otherwise directed by the High Court, a court established under sub-section (1) shall exercise jurisdiction only in respect of cases under this Act.

(3) Subject to the provisions of sub-section (2), the jurisdiction and powers of the presiding officer of a court established under sub-section (1) in any district or metropolitan area shall extend throughout the district or the metropolitan area, as the case may be.

(4) Subject to the foregoing provisions of this section, a Court established under sub-section (1) in any district or metropolitan area shall be deemed to be a court established under subsection (1) of Section 11, or, as the case may be, sub-section (1) of Section 16 of the Code of Criminal Procedure, 1973 (2 of 1974) and provisions of the Code shall apply accordingly in relation to such courts.

Explanation. -In this section, “High Court” has the same meaning as in clause (e) of Section 2 of the Code of Criminal Procedure, 1973.

Section 22-AA. Power of Central Government to establish special courts.

¹[22-AA. Power of Central Government to establish special courts. -

(1) If the Central Government is satisfied that it is necessary for the purpose of providing for speedy trial of offences under this Act and committed in more than one State, it may, by notification in the official Gazette and after consultation with the High Court concerned, establish one or more courts of Judicial Magistrates of the first class or Metropolitan Magistrates for the trial of such offences.

(2) The provisions of Section 22-A, shall, so far as may be, apply to the courts established under sub-section (1), as they apply to Courts established under that section.

1. Ins. by Act No. 44 of 1986 (w.e.f. 26-1-1987).

Section 22-B. Power of court to try cases summarily.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the State Government may, if it considers it necessary so to do, direct that offences under this Act shall be tried in a summary way by a Magistrate including the presiding officer of a court established under sub-section (1) of Section 22-A and the provisions of Section 262 to 265 (both inclusive) of the said Code, shall, as far as may be, apply to such trial:

Provided that in the case of any conviction in a summary trial under this section, it shall be lawful for the Magistrate to pass a sentence of imprisonment for a term not exceeding one year:

Provided further that when at the commencement of, or in the course of, a summary trial under this section, it appears to the Magistrate that the nature of the case is such that a sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undersirable to try the case summarily, the Magistrate shall, after hearing the parties record an order to that effect and thereafter recall any witness, who may have been examined and proceed to hear or re-hear the case in the manner provided by the said Code]

Section 23. Power to make rules.

(1) The State Government may, by notification in the official Gazette, make rules for carrying on the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for:

(a) The notification of any place as a public place;

(b) The placing in custody of persons for whose safe custody orders have been passed under subsection (1) of Section 17 and their maintenance;

(bb) The discharge of an offender under subsection (3) of Section 10-A from a corrective institution and the form of licence to be granted to such offender;

(c) The detention and keeping in protective homes or, as the case may be, in corrective institutions or person under this Act and their maintenance;

(d) The carrying out of the provisions of Section 11 regarding notification of residence or change of or absence from residence by released convicts;

(e) The delegation of authority to appoint the special police officer under subsection (1) of Section 13;

(f) The carrying into effect of the provisions of Section 18;

(g) (i) The establishment, maintenance, management and superintendence of protective homes and corrective institutions under Section 21 and the appointment, powers and duties of persons employed in such home or institution;

(ii) The form in which an application for a licence may be made and the particulars to be contained in such application;

(iii) The procedure for the issue or renewal of a licence, the time within which such licence shall be issued or renewed and the procedure to be followed in making a full and complete, investigation in respect of all application for licence;

(iv) The form of a licence and the condition to be specified therein;

(v) The manner in which the accounts of a protective home and a corrective institution shall be maintained and audited;

(vi) The maintenance of registers and statements by a licensee and the form of such registers and statements;

(vii) The care, treatments, maintenance, training, instruction, control and discipline of the inmates of protective home and corrective institutions;

(viii) The visits to and communications with inmates;

(ix) The temporary detention of persons sentenced to detention in protective homes or in corrective institution until arrangements are made for sending them to such homes or institutions;

(x) The transfer of all inmate from:

(a) Protective home to another, or to a corrective institution,

(b) One corrective institution to another, or to a protective home, under subsection (9-A) of Section 21;

(xi) The transfer in pursuance of an order of the Court from a protective home or a corrective institution to a prison of a person found to be incorrigible or exercising bad influence upon other inmates of the protective home or the corrective institution and the period of her detention in such prison;

(xii) The transfer to a protective home or corrective institution of persons sentenced under Section 7 or Section 8 and the period of their detention in such home or institution;

(xiii) The discharge of inmates front a protective home or corrective institution either absolutely or subject to conditions, and their arrest in the event of breach of such conditions;

(xiv) The grant of permission to inmates to absent themselves for short periods;

(xv) The inspection of protective homes and corrective institutions and other institutions in which a persons may be kept, detained and maintained;

(h) Any other matter which has to be, or may be prescribed.

(3) In making any rule under clause (d) or clause (g) or sub-section (2), the State Government may provide that a breach thereof be punishable with fine which may extend to two hundred and fifty rupees.

(4) All rules made under this Act shall, as soon as may be after they are made, be laid before the State Legislature.

Section 24. Act not to be in derogation of certain other Acts.

Nothing in this Act shall be construed to be in derogation of the provisions of the Reformatory Schools Act, 1897 or any State Act enacted in modification of the said Act or otherwise, relating to juvenile offenders.

Section 25. Repeal and savings.

(1) As from the date of the coming into force in ally State of the provisions other than Section I of this Act, all State Acts relating to suppression of immoral traffic in persons or to the prevention of prostitution, in force in that State immediately before such date shall stand repealed.

(2) Notwithstanding the repeal by this Act, of any State Act referred to in sub-section (1), anything done or any action taken including any direction given in any register, rule or order made, any restriction imposed under the provision of such State Act shall in so far as such thing or action is not inconsistent with the provisions of this Act be deemed to have been done or taken under the provisions of this Act as if the said provisions were in force when such thing was done or such action was taken and shall continue in force accordingly until superseded by anything done or any action taken under this Act.

Explanation. -In this section, the expression ‘State Act “includes” a Provincial Act’.

Section 26- THE SCHEDULE

[SEE SECTION 2(C)]

Section	Magistrate competent to exercise the powers
7(l)	District Magistrate.
11 (4)	Metropolitan Magistrate or Judicial Magistrate of the first class.
12 (4)	1[* * * * * * *]
15(5)	Metropolitan Magistrate, Judicial Magistrate of the first class, District Magistrate or Sub-divisional Magistrate.
16	Metropolitan Magistrate, Judicial Magistrate of the first class, District Magistrate or Sub-divisional Magistrate.
18	District Magistrate or Sub-divisional Magistrate.
19	Metropolitan Magistrate, Judicial Magistrate of the first class, District Magistrate or Sub-divisional Magistrate.
20	District Magistrate, Sub-divisional Magistrate or any Executive Magistrate specially empowered by the State Government.
22-B	Metropolitan Magistrate of Judicial Magistrate of the first class.

1. Figures and words omitted by Act No. 44 of 1986 (w.e.f. 2-6-1987).

Prevention of Cruelty to Animals Act

November 30, 2014

Section 1. Short title, extent and commencement.

(1) This Act may be called the Prevention of Cruelty to Animals Act, 1960.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint, and different dates may be appointed for different States and for the different provisions contained in this Act.¹

——————–

1. See Annexure for notifications under Section 1(3).

Section 2. Definitions.

In this Act, unless the context otherwise requires, -

(a) “Animal” means any living creature other than a human being;

¹[(b) “Board” means the Board established under Section 4, and as reconstituted form time to time under Section 5A.]

(c) “Captive animal” means any animal (not being a domestic animal) which is in captivity or confinement, where permanent or temporary, or which is subjected to any appliance or contrivance for the purposes of hindering or preventing its escape form captivity or confinement or which is pinioned or which is or appears to be maimed;

(d) “Domestic animal” means any animal which is tamed or which has been or is being sufficiently tamed to serve some purpose for the use of man or which, although it neither has been nor is intended to be so tamed, is or has become in fact wholly or partly tamed;

(e) “Local authority” means a municipal committee, district board or other authority for the time being invested by law with the control and administration of any matters within a specified local area;

(f) “Owner”, used with reference to an animal, includes not only the owner but also any other person for the time being in possession or custody of the animal, whether with or without the consent of the owner.

(g) “Phooka” or “doom dev” includes any process of introducing air or any substance into the female organ of a milch animal with the object of drawing off from the animal any secretion of milk;

(h) “Prescribed” means prescribed by Rules made under this Act;

(i) “Street” includes any way, road, lane, square, court, alley, passage or open space, whether a thorough fare or not to which the public have access.

——————–

1. Substituted by Act 26 of 1982 which came into force on 30th July 1982.

Section 3. Duties of persons having charge of animals.

It shall be the duty of every person having the care or charge of any animal to take all reasonable measures to ensure the well being of such animal and to prevent the infliction upon such animal of unnecessary pain or suffering.

Section 4. Establishment of Animal Welfare Board of India.

Chapter Ii ¹[Animal Welfare Board Of India]

——————–

1. Subs. by Act 26 of 1982; S. 3, for the words “Animal Welfare Board”.

4. Establishment of Animal Welfare Board of India-

(1) For the promotion of animal welfare generally and for the purpose of protecting animals from being subjected to unnecessary pain or suffering, in particular, there shall be established by the Central Government, as soon as may be after the commencement of this Act, a Board to be called the ¹[Animal Welfare Board of India.]

(2) The Board shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and may by its name sue and be sued.

——————–

1. Subs. by Act 26 of 1982; S. 4 for the words “Animal Welfare Board”.

Section 5. Constitution of the Board.

(1) The Board shall consist of the following persons, namely: -

(a) The Inspector-General of Forests, Government of India, ex-officio;

(b) The Animal Husbandry Commissioner to the Government of India, ex-officio;

¹(ba) Two persons to represent respectively the Ministries of the Central Government dealing with Home Affairs and Education, to be appointed by the Central Government;

(bb) One person to represent the Indian Board for Wild Life, to be appointed by the Central Government;

(bc) Three persons who, in the opinion of the Central Government, are or have been actively engaged in animal welfare work and are well-known humanitarians, to be nominated by the Central Government;]

(c) One person to represent such association of veterinary practitioners as in the opinion of the Central Government ought to be represented on the Board, to be elected by that association in the prescribed manner;

(d) Two persons to represent practitioners of modern and indigenous systems of medicine, to be nominated by the Central Government;

²[(e) One person to represent each of such two municipal corporations as in the opinion of the Central Government ought to be represented on the Board, to be elected by each of the said corporations in the prescribed manner;]

(f) One person to represent each of such three organisations actively interested in animal welfare as in the opinion of the Central Government ought to be represented on the Board, to be chosen by each of the said organisations in the prescribed manner;

(g) One person to represent each of such three societies dealing with prevention of cruelty to animals as in the opinion of the Central Government ought to be represented on the Board, to be chosen in the prescribed manner;

(h) Three persons to be nominated by the Central Government;

(i) Six Members of Parliament, four to be elected by the House of the People (Lok Sabha) and two by the Council of States (Rajya Sabha).

(2) Any of the persons referred to in clause (a) or ³ [clause (b) or clause (ba) or clause (bb)] of sub-section (1) may depute any other person to attend any of the meetings of the Board.

⁴[(3) The Central Government shall nominate one of the members of the Board to be its Chairman and another member of the Board to be its Vice-Chairman.]

——————–

1. Inserted by Act 26 of 1982; Section 5(a)(i).

2. Subs. by Act 26 of 1982; S.5 (a)(ii), for the original clause.

3. Subs. by Act 26 of 1982; S.5 (b), for the word, brackets and letter “clause (b)”.

4. Subs. by Act 26 of 1982; Section 5(c) for the original clause.

Section 5 A. Reconstitution of the Board.

¹[Reconstitution of the Board. (1) In order that the Chairman and other members of the Board hold office till the same date and that their terms of office come to an end on the same date, the Central Government may, by notification in the Official Gazette, reconstitute, as soon as may be after the Prevention of Cruelty to Animals (Amendment) Act, 1982 comes into force, the Board.

(2) The Board as reconstituted under sub-section (1) shall be reconstituted from time to time on the expiration of every third year from the date of its reconstitution under sub-section (1).

(3) There shall be included amongst the members of the Board reconstituted under sub-section (1), all persons who immediately before the date on which such reconstitution is to take effect, are Members of the Board but such persons shall hold office only for the unexpired portion of the term for which they would have held office if such reconstitution had not been made and the vacancies arising as a result of their ceasing to be Members of the Board shall be filled up as casual vacancies for the remaining period of the term of the Board as so reconstituted :

Provided that nothing in this sub-section shall apply in relation to any person who ceases to be a Member of the Board by virtue of the amendment made in sub-section (1) of section 5 by sub-clause (ii) of clause (a) of section 5 of the Prevention of Cruelty to Animals (Amendment) Act, 1982.]

——————–

1. Ins. by Act 26 of 1982; S. 6,

Section 6. Terms of office and conditions of service of Members of the Board.

¹[Terms of office and conditions of service of Members of the Board. (1) The term for which the Board may be reconstituted under section 5A shall be three years from the date of the reconstitution and the Chairman and other Members of the Board as so reconstituted shall hold office till the expiry of the term for which the Board has been so reconstituted.

(2) Notwithstanding anything contained in sub-section (1)-

(a) The term of office of an ex-officio Member shall continue so long as he holds the office by virtue of which he is such a Member;

(b) The term of office of a Member elected or chosen under clause (c), clause (e), clause (f), clause (g), clause (h) or clause (i) of section 5 to represent any body of persons shall come to an end as soon as he ceases to be a Member of the body which elected him or in respect of which he was chosen;

(c) The term of office of a Member appointed, nominated, elected or chosen to fill a casual vacancy shall continue for the remainder of the term of office of the Member in whose place he is appointed, nominated, elected or chosen;

(d) The Central Government may, at any time, remove for reasons to be recorded in writing a Member from office after giving him a reasonable opportunity of showing cause against the proposed removal and any vacancy caused by such removal shall be treated as casual vacancy for the purpose of clause (c).

(3) The Members of the Board shall receive such allowances, if any, as the Board may, subject to the previous approval of the Central Government, provide by regulations made in this behalf.

(4) No act done or proceeding taken by the Board shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of the Board and in particular, and without prejudice to the generality of the foregoing, during the period intervening between the expiry of the term for which the Board has been reconstituted under section 5A and its further reconstitution under that section, the ex-officio members of the Board shall discharge all the powers and functions of the Board.]

——————–

1. Subs. by Act 26 of 1982, S. i, for the original Section.

Section 7. Secretary and other employees of the Board.

(1) The Central Government shall appoint ¹[x x x] the Secetary of the Board.

(2) Subject to such rules as may be made by the Central Government in this behalf, the Board may appoint such member of other officers and employees as may be necessary for the exercise of its powers and the discharge of its functions and may determine the terms and conditions of service of such officers and other employees by regulations made by it with the previous approval of the Central Government.

——————–

1. The words “one of its officers to be” omitted by Act, 26 of 1982.

Section 8. Funds of the Board.

The funds of the Board shall consist of grants made to it from time to time by the Government and of contributions, donations, subscriptions, bequests, gifts and the like made to it by any local authority or by any other person.

Section 9. Functions of the Board.

The functions of the Board shall be-

(a) To keep the law in force in India for the prevention of cruelty to animals under constant study and advise the Government on the amendments to be undertaken in any such law from time to time;

(b) To advise the Central Government on the making of rules under this Act with a view to preventing unnecessary pain or suffering to animals generally, and more particularly when they are being transported from one place to another or when they are used as performing animals or when they are kept in captivity or confinement;

(c) To advise the Government or any local authority or other person on improvements in the design of vehicles so as to lessen the burden on draught animals;

(d) To take all such steps as the Board may think fit for ¹[amelioration of animals] by encouraging, or providing for, the construction of sheds, water-troughs and the like and by providing for veterinary assistance to animals;

(e) To advise the Government or any local authority or other person in the design of slaughter-houses or the maintenance of slaughter houses or in connection with slaughter of animals so that unnecessary pain or suffering, whether physical or mental, is eliminated in the pre-slaughter stages as far as possible, and animals are killed, wherever necessary, in as humane a manner as possible;

(f) To take all such steps as the Board may think fit to ensure that unwanted animals are destroyed by local authorities, whenever it is necessary to do so, either instantaneously or after being rendered insensible to pain or suffering;

(g) To encourage, by the grant of financial assistance or otherwise, ²[the formation or establishment of pinjrapoles, rescue homes animal shelters, sanctuaries and the like] where animals and birds may find a shelter when they have become old and useless or when they need protection;

(h) To co-operate with, and co-ordinate the work of, associations or bodies established for the purpose of preventing unnecessary pain or suffering to animals or for the protection of animals and birds;

(i) To give financial and other assistance to animal welfare organisations functioning in any local area or to encourage the formation of animal welfare organisations in any local area which shall work under the general supervision and guidance of the Board;

(j) To advise the Government on matters relating to the medical care and attention which may be provided in animal hospitals and to give financial and other assistance to animal hospitals whenever the Board thinks it necessary to do so;

(k) To impart education in relation to the humane treatment of animals and to encourage the formation of public opinion against the infliction of unnecessary pain or suffering to animals and for the promotion of animal welfare by means of lectures, books, posters, cinematographic exhibitions and the like;

(l) To advise the Government on any matter connected with animal welfare or the prevention of infliction of unnecessary pain or suffering on animals.

——————–

1. Subs. by Act 26 of 1982, S. 9(a) for the word “ameliorating the condition of beats of burden”.

2. Subs. by Act 26 of 1982; S. 9(b) for the words “the formation of pinjrapoles, sanctuaries and the like”.

Section 10. Power of Board to make regulations.

The Board may, subject to the previous approval of the Central Government, make such regulations as it may think fit for the administration of its affairs and for carrying out its functions.

Section 11. Section.

(1) If any person-

(a) Beats, kicks, over-rides, over-drives, over-loads, tortures or otherwise treats any animal so as to subject it to unnecessary pain or suffering or cause, or, being the owner permits, any animal to be so treated’, or

(b) ¹[Employs in any work or labour or for any purpose any animal which, by reason of its age or any disease] infirmity, wound, sore or other cause, is unfit to be so employed or, being the owner, permits any such unfit animal to be so employed; or

(c) Wilfully and unreasonably administers any injurious drug or injurious substance to ²[any animal] or wilfully and unreasonably causes or attempts to cause any such drug or substance to be taken by ²[any animal;] or

(d) Conveys or carries, whether in or upon any vehicle or not, any animal in such a manner or position as to subject it to unnecessary pain or suffering; or (e) keeps or confines any animal in any cage or other receptacle which does not measure sufficiently in height, length and breadth to permit the animal a reasonable opportunity for movement; or

(f) Keeps for an unreasonable time any animal chained or tethered upon an unreasonably short or unreasonably heavy chain or cord; or

(g) Being the owner, neglects to exercise or cause to be exercised reasonably and dog habitually chained up or kept in close confinement; or

(h) Being the owner of ³[any animal] fails to provide such animal with sufficient food, drink or shelter; or

(i) Without reasonable cause, abandons any animal in circumstances which render it likely that it will suffer pain by reason of starvation or thirst; or

(j) Wilfully permits any animal, of which he is the owner, to go at large in any street while the animal is affected with contagious or infectious disease or, without reasonable excuse permits any diseased or disabled animal, of which he is the owner, to die in any street; or

(k) Offers for sale or, without reasonable cause, has in his possession any animal which is suffering pain by reason of mutilation, starvation, thirst, overcrowding or other illtreatment; or

⁴[(l) Mutilates any animal or kills any animal (including straydogs) by using the method of strychnine injections in the heart or in any other unnecessarily cruel manner; or]

⁵[(m) Solely with a view to providing entertainment

(i) Confines or causes to be confined any animal (including tying of an animal as a bait in a tiger or other sanctuary) so as to make it an object of prey for any other animal; or

(ii) Incites any animal to fight or bait any other animal; or]

(n) ⁶[x x x] Organizes, keeps, uses or acts in the management of, any place for animal fighting or for the purpose of baiting any animal or permits or offers any place to be so used or receives money for the admission of any other person of any place kept or used for any such purposes; or

(o) Promotes or takes part in any shooting match or competition wherein animals are released from captivity for the purpose of such shooting; he shall be punishable ⁷[in the case of a first offence, with fine which shall not be less than, ten rupees but which may extend to fifty rupees, and in the case of a second or subsequent offence committed within three years of the previous offence, with fine which shall not be less than twenty-five rupees but which may extend to one hundred rupees or with imprisonment for a term which may extend to three months, or with both.]

(2) For the purposes of sub-section (1) an owner shall be deemed to have committed an offence if he has failed to exercise reasonable care and supervision with a view to the prevention of, such offence:

Provided that where on owner is convicted of permitting cruelty by reason only of having failed to exercise such care and supervision, he shall not be liable to imprisonment without the option of a fine.

(3) Nothing in this section shall apply to-

(a) The dehorning of cattle, or the castration or branding or nose-roping of any animal, in the prescribed manner; or

(b) The destruction of stray dogs in lethal chambers or ⁸[by such other methods as may be prescribed.] or

(d) Any matter dealt with in Chapter IV; or

(e) The commission or omission of any act in the course of the destruction or the preparation for destruction of any animal as food for mankind unless such destruction or preparation was accompanied by the infliction of unnecessary pain or suffering.

——————–

1. Subs. by Act 26 of 1982, S. 10 (a) (i) for the words “employs in any work or labour any animal which, by reason of any disease”.

2. Subs. by Act 26 of 1982; S. I0 (a (ii) for the words “any domestic or captive animal”.

3. Subs. by Act 26 of 1982, S. 10(a)(iii) for the words “any captive animal”.

4. Subs. by Act 26 of 1982; S. 10(a)(iv) for the original clause.

5. Subs. by Act 26 of 1982; S. 10(a)(v) for the original clause.

6. The words “for the purpose of his business” omitted by Act 26 of 1982, S. 10(a)(vi).

7. Subs. by Act 26 of 1982; S. 10(a)(vii) for the portion beginning with the words “in the case of a first offence” and ending with the words “or with both”.

8. Subs. by Act 26 of 1982, S. 10(b), for the words “by other methods with a minimum of suffering.”

Section 12. Penalty for practising phooka or doom dev.

If any person performs upon any cow or other milch animal the operation called phooka or ¹[doom dev or any other operation (including injection of any substance) to improve lactation which is injurious to the health of the animal] or permits such operation being performed upon any such animal in his possession or under his control, he shall be punishable with fine which may extend to one thousand rupees, or with imprisonment for a term which may extend to two years, or with both, and the animal on which the operation was performed shall be forfeited to the Government.

——————–

1. Subs. by Act 26 of 1982; S. 11, for the words “doom dev”.

Section 13. Destruction of suffering animals.

(1) Where the owner of an animal is convicted of an offence under section 11, it shall be lawful for the court, if the court is satisfied that it would be cruel to keep the animal alive, to direct that the animal be destroyed and to assign the animal to any suitable person for that purpose, and the person to whom such animal is so assigned shall, as soon as possible, destroy such animal or cause such animal to be destroyed in his presence without unnecessary suffering; and any reasonable expense incurred in destroying the animal may be ordered by the court to be recovered from the owner as if it were a fine :

Providing that unless the owner assents thereto, no order shall be made under this section except upon the evidence of a veterinary officer in charge of the area.

(2) When any magistrate, commissioner of police or district superintendent of police has reason to believe that an offence under section 11 has been committed in respect of any animal, he may direct the immediate destruction of the animal, if in his opinion, it would be cruel to keep the animal alive.

(3) Any police officer above the rank of a constable or any person authorised by the State Government in this behalf who finds any animal so diseased or so severely injured or in such a physical conditions that in his opinion it cannot be removed without cruelty, may, if the owner is absent or refuses his consent to the destruction of the animal, forthwith summon the veterinary officer in charge of the area in which the animal is found, and if the veterinary officer certifies that the animal is mortally injured or so severely injured or in such a physical condition that it would be cruel to keep it alive, the police officer or the person authorised, as the case may be, may, after obtaining orders from a magistrate, destroy the animal injured or cause it to be destroyed ¹[in such manner as may be prescribed.]

(4) No appeal shall lie, from any order of a magistrate for the destruction of an animal.

——————–

1. Ins. by Act 26 of 1982, S. 12

Section 14. Experiments on animals.

Nothing contained in this Act shall render unlawful the performance of experiments (including experiments involving operations) on animals for the purpose of advancement by new discovery of physiological knowledge or of knowledge which will be useful for saving or for prolonging life or alleviating suffering or for combating any disease, whether of human beings, animals or plants.

Section 15. Committee for control and supervision of experiments on animals.

(1) If at any time, on the advice of the Board, the Central Government is of opinion that it is necessary so to do for the purpose of controlling and supervision experiments on animals, it may, by notification in the official Gazette, constitute a Committee consisting of such number of officials and non-officials, as it may think fit to appoint thereto.

(2) The Central Government shall nominate one of the Members of the Committee to be its Chairman.

(3) The Committee shall have power to regulate its own procedure in relation to the performance of its duties.

(4) The funds of the Committee shall consist of grants made to it from time to time by the Government and of contributions, donations, subscriptions, bequests, gifts and the like made to it by any person.

Section 15 A. Sub-Committees.

¹[Sub-Committees. (1) The Committee may constitute as many subcommittees as it thinks fit for exercising any power or discharging any duty of the Committee or for inquiring into or reporting and advising on any matter which the Committee may refer.

(2) A sub-committee shall consist exclusively of the Members of the Committee.]

——————–

1. Ins. by Act 26 of 1982, S. 13.

Section 16. Staff of the Committee.

Subject to the control of the Central Government, the Committee may appoint such number of officers and other employees as may be necessary to enable it to exercise its powers and perform its duties, and may determine the remuneration and other terms and conditions of service of such officers and other employees.

Section 17. Duties of the Committee and power of the Committee to make rules relating to experiments on animals.

(1) It shall be the duty of the Committee to take all such measures as may be necessary to ensure that animals are not subjected to unnecessary pain or suffering before, during or after the performance of experiments on them, and for that purpose it may, by notification in the Gazette of India and subject to the condition of previous publication, make such rules as it may think fit in relation to the conduct of such experiments.

¹[(1A) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for the following, matters, namely:

(a) The registration of’ persons or institutions carrying on experiments on animals;

(b) The reports and other information which shall be forwarded to the Committee by persons and institutions carrying on experiments on animals.]

(2) In particular, and without prejudice to the generality of the foregoing power, rules made by the Committee shall be designed to secure the following Objects, namely:

(a) That in cases where experiments are performed in any institution, the responsibility therefor is placed on the person in charge of the institution and that, in cases where experiments are performed outside an institution by individuals, the individuals are qualified in that behalf and the experiments are performed on their full responsibility;

(b) That experiments are performed with due care and humanity, and as far as possible experiments involving operations are performed under the influence of some anaesthetic of sufficient power to prevent the animals feeling pain;

(c) That animals which, in the course of experiments under the influence of anaesthetics, are so injured that their recovery would involve serious suffering, are ordinarily destroyed while still insensible;

(d) That experiments on animals are avoided wherever it is possible to do so; as for example, in medical schools, hospitals, colleges and the like, if other teaching devices such as books, models, films and the like may equally suffice;

(e) That experiments on larger animals are avoided when it is possible to achieve the same results by experiments upon small laboratory animal like guineapigs, rabbits, frogs and rats;

(f) That, as far as possible, experiments are not performed merely for the purpose of acquiring manual skill;

(g) That animals intended for the performance of experiments are properly looked after both before and after experiments;

(h) That suitable records are maintained with respect to experiments performed on animals.

(3) In making any rules under this section, the Committee shall be guided by such directions as the Central Government (consistently with the object for which the Committee is set up) may give to it, and the Central Government is hereby authorised to give such directions.

(4) All rules made by the Committee shall be binding on all individuals performing experiments outside institutions and on person’s incharge of institutions in which experiments are performed.

——————–

1. Ins. by Act 26 of 1982, S. 14.

Section 18. Power of entry and inspection.

For the purpose of ensuring that the rules made by it are being complied with, the Committee may authorise any of its officers or any other person in writing to inspect any institution or place where experiments are being carried on and report to it as a result of such inspection, and any officer or person so authorised may-

(a) Enter at any time considered reasonable by him and inspect any institution or place in which experiments on animals are being carried on; and

(b) Require any person to produce any record kept by him with respect to experiments on animals.

Section 19. Power to prohibit experiments on animals.

If the Committee is satisfied, on the report of any officer or other person made to it as a result of any inspection under section 18 or otherwise, that the rules made by it under section 17 are not being complied with by any person or institution carrying on experiments on animals, the Committee may, after giving an opportunity to the person or institution of being heard in the matter, by order, prohibit the person or institution from carrying on any such experiments either for a specified period or indefinitely, or may allow the person or institution to carry on such experiments subject to such special conditions as the Committee may think fit to impose.

Section 20. Penalties.

If any person-

(a) Contravenes any order made by the Committee under section 19; or

(b) Commits a breach of any condition imposed by the Committee under that section; he shall be punishable with fine which may extend to two hundred rupees, and, when the contravention or breach of condition has taken place in any institution the person in charge of the institution shall be deemed to be guilty of the offence and shall be punishable accordingly.

Section 21. Exhibit, and “train” defined.

In this Chapter, “exhibit means exhibit or any entertainment to which the public are admitted through sale of tickets, and “exhibitor” and “train for the purpose of any such exhibition, and the expressions “exhibitor” and “trainer” have respectively the corresponding meanings.

Section 22. Restriction on exhibition and training of performing animals.

No person shall exhibit or train –

(i) Any performing animal unless he is registered in accordance with the provisions of this chapter;

(ii) As a performing animal, any animals, which the Central Government may, by notification in the official Gazette, specify as an animal, which shall not be exhibited or trained as a performing animal,

Section 23. Procedure for registration.

(1) Every person desirous of exhibiting or training any performing animal shall, on making an application in the prescribed form to the prescribed authority and on payment of the prescribed fee, be registered under this Act unless he is a person who, by reason of an order made by the court under this Chapter, is not entitled to be so registered.

(2) An application for registration under this Chapter shall contain such particulars as to the animals and as to the general nature of the performance in which as may which the animals are to be exhibited or for which they are to be trained as may be prescribed, and the particulars so given shall be entered in the register maintained by the prescribed authority.

(3) The prescribed authority shall give to every person whose name appears on the register kept by them, a certificate of registration in the prescribed form containing the particulars entered in the register.

(4) Every register kept under this Chapter shall at all reasonable times be open for inspection on payment of the prescribed fee, and any person shall, on payment of the prescribed fee, be entitled to obtain copies thereof or make extracts therefrom.

(5) Any person whose name is entered provisions of any order made under this Act by any court, be entitled, on making an application for the purpose, to have the particulars entered in the register with respect to him varied, and where any such particulars are so varied, the existing certificate shall be cancelled and a new certificate issued.

Section 24. Power of court to prohibit or restrict exhibition and training of performing animals.

(1) Where it is proved to the satisfaction of any magistrate on a complaint made by a police officer or any off the prescribed authority referred to in section 23, that the training or exhibition of any performing animal has been accompanied by unnecessary pain or suffering and should be prohibited or allowed only subject to conditions, the court may make an order against the person in respect of whom the complaint is made, prohibiting the training or exhibition or imposing such conditions in relation thereto, as may be specified by the order.

(2) Any court by which an order is made under this section, shall cause a copy of the order to be sent, as soon as may be after the order is made, to the prescribed authority by which the person against whom the order is made is registered, and shall cause the particulars of the order to be endorsed upon the certificate held by that person, and that person shall produce his certificate on being so required by the court for the purposes of endorsement, and the prescribed authority to which a copy of an order is sent under this section shall enter the particulars of the order in that register.

Section 25. Power to enter premises.

(1) Any person authorised in writing by the prescribed authority referred to in section 23 and any police officer not below the rank of a sub-inspector may-

(a) Enter at all reasonable times and inspect any premises in which any performing animals are being trained or exhibited or kept for training or exhibition, and any such animals found therein; and

(b) Require any person who, he has reason to believe is a trainer or exhibitor of performing animals to produce his certificate of registration.

(2) No person or police officer referred to in sub-section (1) shall be entitled under this section to go on or behind the stage during a public performance of performing animals.

Section 26. Offences.

If any person–

(a) Not being registered under this Chapter, exhibits or trains any performing animal; or

(b) Being registered under this Act, exhibits or trains any performing animal with respect to which or in a manner with respect to which, he is not registered; or

(c) Exhibits or trains as a performing animal, any animal which is not to be used for the purpose by reason of a notification issued under clause (ii) of section 22; or

(d) Obstructs or wilfully delays any person or police officer referred to in section 25 in the exercise of powers under this Act as to entry and inspection; or

(e) Conceal any animal with a view to avoiding such inspection; or

(f) Being a person registered under this Act, on being duly required in pursuance of this Act to produce his certificate under this Act, fails without reasonable excuse so to do; or

(g) Applies to be registered under this Act when not entitled to be so registered. He shall be punishable on conviction with fine, which may extend to five hundred rupees, or with imprisonment, which may extend to three months, or with both.

Section 27. Exemptions.

Nothing contained in this Chapter shall apply to-

(a) The training of animals for bona fide military or police purpose or the exhibition of any animal so trained; or

(b) Any animals kept in any zoological garden or by any society or association, which has for its principal object the exhibition of animals for educational or scientific purposes.

Section 28. Saving as respects manner of killing prescribed by religion.

Nothing contained in this Act shall render it an offence to kill any animal in a manner required by the religion of any community.

Section 29. Power of court to deprive person convicted of ownership of animal.

(1) If the owner of any animal is found guilty of any offence under this Act the court upon his conviction thereof, may, if it thinks fit, in addition to any other punishment make an order that the animal with respect to which the offence was committed shall be forfeited to Government and may, further, make such order as to the disposal of the animal as it thinks fit under the circumstances.

(2) No order under sub-section (1) shall be made unless it is shown by evidences to a previous conviction under this Act or as to the character of the owner or otherwise as to the treatment of the animal that the animal, if left with the owner, is likely to be exposed to further cruelty.

(3) Without prejudice to the provisions contained in sub-section (1), the court may also order that a person convicted of an offence under this Act shall, either permanently or during such period as is fixed by the order, be prohibited from having the custody of any animal of any kind whatsoever, or as the court thinks fit of any animal of any kind or species specified in the order.

(4) No order under sub-section (3) shall be made unless-

(a) It is shown by evidence as to a previous conviction or as to the character of the said person or otherwise as to the treatment of the animal in relation to which he has been convicted that an animal in the custody of the said person is likely to be exposed to cruelty;

(b) It is stated in the complaint upon which the conviction was made that it is the intention of the complainant upon the conviction of the accused to request that an order be made as aforesaid; and

(c) The offence for which the conviction was made was committed in an area in which under the law for the time being in force a licence is necessary for the keeping of any such animal as that in respect of which the conviction was made.

(5) Notwithstanding anything to the contrary contained in any law for the time being in force, any person in respect of whom an order is made under subsection (3) shall have no right to the custody of any animal contrary to the provisions of the order, and if he contravenes the provisions of any order, he shall be punishable with fine which may extend to one hundred rupees, or with imprisonment for a term which may extend to three months, or with both.

(6) Any court, which has made an order under sub-section (3), may at any time, either on its own motion or on application made to it in this behalf, rescind or modify, such order.

Section 30. Presumption as to guilt in certain cases.

If any person is charged with the offences of killing a goat, cow or its progeny contrary to the provisions of clause (i) of sub-section (1) of section 11, and it is proved that such person had in his possession, at the time the offence is alleged to have been committed, the skin of any such animal as is referred to in this section with any part of the skin of the head attached thereto, it shall be presumed until the contrary is proved that such animal was killed in a cruel manner.

Section 31. Cognoscibility of offences.

Notwithstanding anything contained in the Code or Criminal Procedure, 1898, (5 of 1898) an offence punishable under clause (1)or clause (n) or clause (o) of sub-section (1) of section 11 or under section 12 shall be a cognizable offence within the meaning of that Code.

Section 32. Powers of search and seizure.

(1) If a police officer not below the rank of sub inspector or any person authorised by the State Government in this behalf has reason to believe that an offence under clause (1) of sub-section 11 in respect of any such animal as is referred to in section 30 is being, or is about to be, or has been, committed in any place, or that any person has in his possession the skin of any such animal with any part of the skin of the head attached thereto, he may enter and search such place or any place in which he has reason to believe any such skin to be, and may seize such skin or any article or thing used for intended to be used in the commission of such offence.

(2) If a police officer not below the rank of sub-inspector, or any person authorised by the State Government in this behalf, has reason be believe that phooka or ¹[doom dev or any other operation of the nature referred to in section 12] has just been, or is being, performed on any animal within the limits of his jurisdiction, he may enter any place in which he has reason to believe such animal to be, and may seize the animal and produce it for examination by the veterinary officer in charge of the area in which the animal is seized.

——————–

1. Subs, by Act 26 of 1982 S. 15 for the words “doom dev”.

Section 33. Search Warrants.

(1) If a magistrate of the first or second class or a presidency magistrate or a sub-divisional magistrate or a commissioner of police or district superintendent of police, upon information in writing, and after such inquiry as he thinks necessary, has reason to believe that an offence under this Act is being, or is about to be, or has been committed in any place, he may either himself enter and search or by his warrant authorise any police officer not below the rank of sub-inspector to enter and search the place.

(2) The provisions of the Code or Criminal Procedure, 1898, (5 of 1898) relating to searches shall so far as those provisions can be made applicable, apply to searches under this Act.

Section 34. General power of seizure for examination.

Any police officer above the rank of a constable or any person authorised by the State Government in this behalf, who has reason to believe that an offence against his Act has been or is being, committed in respect of any animal, may, if in his opinion the circumstances so require, seize the animal and produce the same for examination by the nearest magistrate or by such veterinary officer as may be prescribed, and such police officer or authorised person may, when seizing the animal, require the person in charge thereof to accompany it to the place of examination.

Section 35. Treatment and care of animals.

(1) The State Government, may be general or special order appoint infirmaries for the treatment and care of animals in respect of which offences against this Act have been committed, and may authorise the detention therein of any animal pending its production before a magistrate.

(2) The magistrate before whom a prosecution for an offence against this Ac has been instituted may direct that the animals concerned shall be treated and care for in an infirmary, until it is fit to perform its usual work or is otherwise fit for discharge, or that it shall be sent to a pinjrapole, or if the veterinary officer in charge of the area in which the animal is found or such other veterinary officer as may be authorised in this behalf by rules made under this Act certifies that it is incurable or cannot be removed without cruelty, that it shall be destroyed.

(3) An animal sent for care and treatment to an infirmary shall not, unless the magistrate directs that it shall be sent to a pinjrapole or that it shall be destoryed, be released from such place except upon a certificate of its fitness for discharge issued by the veterinary officer in charge of the area in which the infirmary is situated or such other veterinary officer as may be authorised in this behalf by rules made under this Act.

(4) The cost of transporting the animal to an infirmary or pinjrapole and of its maintenance and treatment in an infirmary, shall be payable by the owner of the animal in accordance with a scale of rates to be prescribed by the district magistrate, or, in presidency-towns, by the commissioner of police;

Provided that when the magistrate so orders on account of the poverty of the owner of the animal, no charge shall be payable for the treatment of the animal.

(5) Any amount payable by an owner of an animal under sub-section (4) may be recovered in the same manner as an arrear of land revenue.

(6) If the owner refuses or neglects to remove the animal within such time as a magistrate may specify, the magistrate may direct that the animal be sold and that the proceeds of the sale be applied to the payment of such cost.

(7) The surplus, if any, of the proceeds of such sale shall, on application made by the owner within two months from the date of the sale, be paid to him.

Section 36. Limitation of prosecutions.

A prosecution for an offence against this Act shall not be instituted after the expiration of three months from the date of the commission of the offence.

Section 37. Delegation of powers.

The Central Government may, by notification in the Official Gazette, direct that all or any of the powers exercisable by it under this Act, may, subject to such conditions as it may think fit to impose, be also exercisable by any State Government.

Section 38. Power to make rules.

(1) The Central Government may, by notification in the Official Gazette, and subject to the condition of previous publication, make rules to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, the Central Government may wake rules providing for all or any of the following matters, namely:

(a) The ¹[x x x] conditions of service of members of the Board, the allowances payable to them and the manner in which they may exercise their powers and discharge their functions;

²[(aa) The manner in which the persons to represent municipal corporations are to be elected under clause (e) of sub-section (1) of section 5;],

(b) The maximum load (including any load occasioned by the weight of passengers) to be carried or drawn by any animal;

(e) The conditions to be observed for preventing the overcrowding of animals;

(d) The period during which, and the hours between which, any class of animals shall not be used for draught purposes;

(e) Prohibiting the use of any bit or harness involving cruelty to animals;

³[(ea) The other methods of destruction of stray dogs referred to in clause (b) of sub-section (3) of section 11;

(eb) The methods by which any animal which cannot be removed without cruelty may be destroyed under sub-section (3) of section 13;]

(f) Requiring persons carrying on the business of a farrier to be licensed and registered by such authority as may be prescribed and levying a fee for the purpose;

(g) The precautions to be taken in the capture of animals for purposes of sale, export or for any other purpose, and the different appliances or devices that may alone be used for the purpose; and the licensing of such capture and the levying of fees for such licences;

(h) The precautions to be taken in the transport of animals whether by rail, road, inland, waterway, sea or air and the manner in which and the cages or other receptacles in which they may be so transported;

(i) Requiring persons owning or in charge of premises in which animals are kept or milked to register such premises, to comply with such conditions as may be laid down in relation to the boundary walls or surroundings of such premises, to permit their inspection for the purpose of ascertaining whether any offence under this Act is being or has been committed therein, and to expose in such premises copies of section 12 in a language or languages commonly understood in the locality;

(j) The form in which applications for registration under Chapter V may be made, the particulars to be contained therein, the fees payable for such registration and the authorities to whom such applications may be made;

⁴[ja) The fees which may be charged by the Committee constituted under section 15 for the registration of persons or institutions carrying on experiments on animals or for any other purpose;]

(k) The purpose to which fines realised under this Act may be applied, including such purposes as the maintenance of infirmaries, pinjrapole and veterinary hospitals;

(l) Any other matter which was to be, or may be prescribed.

(3) If any person contravenes, or abets the contravention of, any rules made under this section, he shall be punishable with fine which may extend to one hundred rupees, or with imprisonment for a term which may extend to three months, or with both.

⁵[x x x ]

——————–

1. The words “terms and” omitted by Act 26 of 1982, S, 16 (a) (i).

2. Ins. by Act 26 of 1982; S. 16 (a) (ii)

3. Ins. by Act 26 of 1982; S. 16 (a) (iii).

4. Ins. by Act 26 of 1982. S. 16(a) (iv).

5. “Sub-section (4) of the Principal Act” omitted by Act 26 of 1982, S. 16(b)

Section 38 A. Rules and Regulations to be laid before Parliament.

¹[Rules and Regulations to be laid before Parliament. Every rule made by the Central Government or by the Committee constituted under section 15 and every regulation made by the Board shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, as the case may be, should not be made, the rule or regulation shall there after 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 or regulation.]

——————–

1. Ins by Act 26 of 1982, S. 17.

Section 39. Persons authorised under Section 34 to be public servants.

Every person authorised by the Sate Government under section 34 shall be deemed to be a public servant within the meaning of section 21 of the Indian Panel Code.

Section 40. Indemnity.

No suit, prosecution or other legal proceeding shall lie against any person who is, or who is deemed to be, a public servant within the meaning of section 21 of the Indian Panel Code in respect of anything in good faith done or intended to be done under this Act.

Section 41. Repeal of Act 11 of 1890.

Where in pursuance of a notification under sub-section (3) of section 1 any provision of this Act comes into force in any State, any provision of the Prevention of Cruelty to Animals Act, 1890 (11 of 1890), which corresponds to the provision so coming into force, shall thereupon stand repealed.

Payment of Bonus Act

November 30, 2014

Section 1. Short title, extent, and application

(1) This Act may be called the Payment of Bonus Act,1965

(2) It extends to the whole of India [Note: The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1st September,1971).

(3) Save as otherwise provided in this Act, it shall apply to -

(a) Every factory; and

(b) Every other establishment in which twenty or more persons are employed on any day during an accounting year:

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25th September, 1975) Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by notification in the official Gazette, apply the provisions of this Act with effect from such accounting year as may be specified in the notification, to any establishment or class establishments [including an establishment being a factory within the meaning of sub-clause (ii) of Cl. (m) of Sec.2 of the Factories Act, 1948 (63 of 1948)] employing such number of persons less than twenty as may be specified in the notification ; so however, that number of persons so specified shall in no case be less than ten.]

(4) Save as otherwise provided in this Act, the provisions of this Act shall in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of every subsequent accounting year:

[(Note: Added by Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1st September, 1971) Provided that in relation to the State of Jammu and Kashmir, the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year shall be construed as reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year:]

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25th September, 1975) Provided further that when the provisions of this Act have been made applicable to any establishment or class of establishments by the issue of a notification under the proviso to sub-section (3), the reference to the accounting year commencing on any day in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting year commencing on any day in the year 1968 and every subsequent accounting year shall in relation to such establishment or class of establishments, be construed as a reference to the accounting year specified in such notification and every subsequent accounting year.]

(5) An establishment to which this Act applies [Note: The words, brackets, letter and figure “under Cl. (b) of sub-section (3)” omitted by Act 23 of 1976, Sec.8 (w.e.f. 25th September, 1975)] shall continue to be governed by this Act notwithstanding that the number of persons employed therein falls below twenty [(Note: Ins. by Act 23 of 1976, Sec-3, (w.e.f. 25th September, 1975) or, as the case may be, the number specified in the notification issued under the proviso to sub-section (3)].

NOTES

Section 1 and 2 of Payment of Bonus (Amendment) Act No.43 of 1977 provides as under :

1. Shot title and commencement – (1) This Act may be called the Payment of Bonus (Amendment) Act, 1977.

(2) It shall come into force on the third day of September, 1977.

2. Act 21 of 1965 to have modified effect for a particular period – The Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act) shall, -

(a) In relation to a factory or other establishment to which the principal Act applies immediately before the commencement of this Act and

(b) In relation to a banking company and the Industrial Reconstruction Corporation of India to which the principal Act applies on and from such commencement by virtue of this Act,

Have effect in respect of the accounting year commencing on any day in the year 1976 [and in respect of the accounting year commencing on any day in the year 1977], as if the amendments specified in Sections 3 to 19 has been made in that Act.

Explanation – In this section, the expressions “banking company” and “accounting year” shall have the meanings respectively assigned to them in clauses (8) and (1) of Section 2 of the principal Act”.

Section 2. Definitions

In this Act, unless the context otherwise requires, -

(1) “Accounting year” means -

(i) In relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced :

(ii) In relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not; (iii) In any other case -

(a) The year commencing on the 1st day of April ; or

(b) If the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced :

Provided that an option once exercised by the employer under para. (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit :

(2) “Agricultural income” shall have the same meaning as in the Income-tax Act ; (3) “Agricultural income-tax law” means any law for the time being in force relating to the levy of tax on agricultural income ; (4) “Allocable surplus” means -

(a) In relation to an employer, being a company [(Note: Ins. by Act 66 of 1980 (w.e.f. 21st August,1980) (other than a banking company)] which has not made the arrangements prescribed under the Income-tax Act for the declaration and payment within Indian of the dividends payable out of its profits in accordance with the provisions of Sec.194 of that Act, sixty-seven per cent of the available surplus in an accounting year ;

(5) In any other case, sixty per cent of such available surplus ; (Note: Certain words omitted by Act 23 of 1976, Sec.4 (w.e.f. 25th September, 1975)

(6) “Available surplus” means the available surplus computed under Sec.5 ;

(7) “Award” means an interim or a final determination of any industrial dispute or of any question relating thereto ny any Labour Court. Industrial Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947 (14 of 1947), or by any other authority constituted under any corresponding law relating to investigation and settlement of industrial disputes in force in a State and includes an arbitration award made under Sec. 10-A of that Act or under that law;

(8) “Banking company” means a banking company as defined in Sec.5 of the Banking Companies Act, 1949 (10 of 1949), and includes the State Bank of India, any subsidiary bank as defined in the State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959), [(Note: Ins. by Act 23 of 1976 Sec.4 (w.e.f. 25th September, 1975) any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, (5 of 1970), [Note: Ins. by Act 66 of 1980, (w.e.f. 21st August, 1980) any corresponding new bank constituted under Sec.3 of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980] any co-operative bank as defined in Cl. (bii) of Sec.2 of the Reserve Bank of India Act, 1934 (2 of 1934),] and any other banking institution which may be notified in this behalf by the Central Government.

(9) “Company” means any company as defined in Sec.3 of the Companies Act, 1956 (1 of 1956), and includes a foreign company within the meaning of Sec.591 of that Act;

(10) “Co-operative society” means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for the time being in force in any State relating to co-operative societies;

(11) “Corporation” means any body corporate established by or under any Central, Provincial or State Act but does not include a company or a co-operative society :

(12) “Direct tax” means -

(a) Any tax chargeable under – (i) The Income-tax Act;

(ii) The Super Profits Tax Act, 1963 (14 of 1963);

(iii) The Companies (Profits) Surtax Act, 1964 (7 of 1964);

(iv) The agricultural income-tax law; and

(b) Any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification in the official Gazette to be a direct tax for the purposes of this Act;

(13) “Employee” means any person (other than an apprentice) employed on a salary or wage not exceeding [(Note: Subs. by Act No.67 of 1985, Sec.2, for the words “one thousand and six hundred rupees” (w.e.f. 7th November, (1985)) two thousand and five hundred rupees] per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied;

(14) “Employer” includes -

(i) In relation to an establishment which is factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under Cl. (f) of sub-section (1) of Sec.7 of the Factories Act, 1948, the person named; and (ii) In relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent ;

(15) “Establishment in private section” means any establishment other than an establishment in public sector;

(16) “Establishment in public sector” means an establishment owned, controlled or managed by-

(a) A Government company as defined in Sec. 617 of the Companies Act,

1956 (1 of 1956) ; (b) A corporation in which not less than forty per cent of its capital is held (whether singly or taken together) by -

(i) The Government; or

(ii) The Reserve Bank of India; or

(iii) A corporation owned by the Government or the Reserve Bank of India ;

(17) “Factory” shall have the same meaning as in Cl. (m) of Sec.2 of the Factories Act, 1948 (63 of 1948) ;

(18) “Gross profits” means the gross profits calculated under Sec.4 ;

(19) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961) ;

(20) “Prescribed” means prescribed by rules made under this Act ;

(21) “Salary or wage” means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living, but does not include -

(i) Any other allowance which the employee is for the time being entitled to

(ii) The value of any house accommodation or of such of light, water, medical attendance or other amenity or of any service of any confessional supply of food grains or other articles;

(iii) Any traveling concession;

(iv) Any bonus (including incentive, production and attendance bonus) ;

(v) Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employees under any law for the time being in force ;

(vi) Any retrenchment compensation or any gratuity or other retirement benefit payable to the employees or any ex gratia payment made to him ;

(vii) Any commission payable to the employee.

(viii) Any commission payable to the employee.

Explanation – Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such employees.

(22) Words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.

Section 3. Establishments to include departments, undertakings and branches

Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this Act :

Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or breach shall be treated as separate establishment for the purpose of computation of bonus under this Act for that year, unless such department or undertaking or branch was immediately before the commencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.

NOTES

When there is integral link and unity of management between the two division of a company it cannot be said as a separate undertaking although it is 60 miles away from one division. Gawlior Rayon Silk Mfg. Co. v. Industrial Tribunal 1975 Lab. I.C. 820.

Section 4. Computation of gross profits.

The gross profits derived by an employer from an establishment in respect of any accounting year shall -

(a) In the case of a banking company, be calculated in the manner specified in the First Schedule ; (b) In any other case, be calculated in the manner specified in the Second Schedule.

Section 5. Computation of available surplus

The available surplus in respect of any accounting year shall be the gross profits for that year after deducting therefrom the sums referred to in Sec.6.

[(Note: Added by Act 8 of 1969, Sec.2) Provided that the available surplus in respect of the accounting year commencing on any day in the year 1968 and in respect of every subsequent accounting year shall be the aggregate of -

(a) The gross profits for that accounting year after deducting therefrom the sums referred to in Section 6; and (b) An amount equal to the difference between -

(i) The direct tax, calculated in accordance with the provisions of Section 7, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and

(ii) The direct tax, calculated in accordance with the provisions of Section 7, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting therefrom the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Act for that year.]

NOTES

The burden of proving that the depreciation claimed is the correct amount admissible under Section 32 (1) of Income-tax Act lies on the party claiming such amount. Workmen of National and Grindlays Bank Ltd. v. National and Grindlays Bank Ltd., AIR 1976 S.C. 611.

Section 6. Sums deductible from gross profits

The following sums shall be deducted from the gross profits as prior charges, namely:

(a) Any amount by way of depreciation admissible in accordance with the provisions of sub-section (1) of Section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural Income-tax law, as the case may be : Provided that where an employer has been paying bonus of his employees under a settlement or an award or agreement made before the 29th May, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from that date) continue to be such notional normal depreciation;

(b) Any amount by way of [(Note: Subs. by Act 66 of 1980) development rebate or investment allowance or development allowance] which the employer is entitled to deduction from his income under the Income-tax Act; (c) Subject to the provisions of Section 7, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during the year;

(d) Such further sums as are specified in respect of the employer in the [(Note: Ibid) Third Schedule].

Section 7. Calculation of direct tax payable by the employer

(Note: Subs. by Act 68 of 1969) Any direct tax payable by the employer] for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely:

(a) In calculating such tax no account shall be taken of -

(i) Any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for time being in force relating to direct taxes ;

(ii) Any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any following accounting year or years under sub-section (2) of Section 32 of the Income-tax Act ;

(iii) Any exemption conferred on the employer under Section 84 of the Income-tax Act or of any deduction The Orient Tavern which he is entitled under sub-section (1) of Section 101 of that Act, as in force immediately before the commencement of the Finance Act, 1965 (10 of 1965) ;

(b) Where the employer is a religious or a charitable institution to which the provisions of Section 32 do not apply and the whole or any part of its income is exempt from tax under the Income-tax Act, then, with respect The Orient Tavern the income so exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act ;

(c) Where the employer is an individual or a Hindu undivided family, the tax payable by such employer under the Income-tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income ;

(d) Where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate ;

(e) No account shall be taken of any rebate [(Note: Subs. by Act 66 of 1980) other than development rebate or investment allowance or development allowance)] or credit or relief or deduction (not hereinafter mentioned in this section) in the payment of any direct tax allowed under nay law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.

Section 8. Eligibility for bonus

Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

Section 9. Disqualification for bonus

Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-

(a) Fraud; or (b) Riotous or violent behaviour while on the premises of the establishment; or

Section 10. Payment of minimum bonus

Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:

Provided that there an employee has not employed fifteen years of age at the beginning of the accounting year, the provision of this section shall have effect in relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted.

Section 11. Payment of maximum bonus

(1) Where in respect of any accounting year referred to in Sec.10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage.

(2) In computing the allocable surplus under this section, the amount set on or the amount set-off under the provisions of Sec.15 shall be taken into account in accordance with the provisions of that section.

Section 12. Calculation of bonus with respect to certain employees

Where the salary or wage of an employee exceeds one thousand and six hundred rupees per mensem, the bonus payable to such employee under Sec.10, or as the case may be, under Sec.11, shall be calculated as if his salary or wage were one thousand and six hundred rupees per mensem.

Section 13. Proportionate reduction in bonus in certain cases

Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.

NOTES

Working days – Words ‘working day in any accounting year’ – meaning of – factory working in a particular season only and not during the whole year in such a case the ‘working days’ only mean those days of the year during which the employee concerned is actually allowed to work. (Shakkar Mills Mazdoor Sangh v. Gwalior Sugar Co. Ltd., 1985 JLJ 294 = AIR 1985 SC 758).

Section 14. Computation of number of working days.

For the purposes of Sec. 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which -

(a) He has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947) or under any other law applicable to the establishment ;

(b) He has been on leave with salary or wage;

(c) He has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

(d) The employee has been on maternity leave with salary or wage, during the accounting year.

Section 15. Set-on and set-off of allocable surplus

(1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under Sec.11, the, the excess shall, subject to a limit of twenty per cent of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set-on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilized for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under Section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set-off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule.

(3) The principle of set-on and set-off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Act.

(4) Where in any accounting year any amount has been carried forward and set-on or set-off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set-on or set-off carried forward from the earliest accounting year shall first be taken into account.

Section 16. Special provisions with respect to certain establishments

(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-section (1-A), (1-B) and (1-C).

(1-A) In the first five accounting years following the accounting year in which the employee sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of Sec.15.

(1-B) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of Sec.15 shall apply subject to the following modifications namely :

(i) For the sixth accounting year – Set on or set-off, as the case may be, shall be made in the manner illustrated in the [(Note: Subs. by Act 66 of 1980, (w.e.f. 25th September,1975) Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set-on or set-off in respect of the fifth and sixth accounting year ;

(ii) For the seventh accounting year – Set-on or set-off, as the case may be, shall be made in the manner illustrated the [(Note: Subs. by Act 66 of 1980, (w.e.f. 25th September,1975) Fourth Schedule] taking into account the excess of deficiency, if any, as the case may be, of the allocable surplus set-on or set-off in respect of the fifth, sixth and seventh accounting years.

(1-C) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of Sec.15 shall apply in relation to such establishment as they apply in relation to any other establishment.

Explanation I – For the purpose of sub-section (1), an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.

Explanation II – For the purpose of sub-section (1-A), an employer shall not be deemed to have derived profit in any accounting year unless -

(a) He has made provision for that year’s depreciation, to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax law ; and (b) The arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set-off against his profits.

Explanation III – For the purposes of sub-sections (1-A), (1-B) and (1-C) sale of the goods produced or manufactured during the course of the trail running of any factory or of the prospecting stage or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.]

(2) The provisions of [(Note: Subs. by Act 23 of 1976, (w.e.f. 25th September, 1975) sub-sections (1), (1-A), (1-B) and (1-C) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments :

Provided that if an employer in relation to an existing establishment consisting of different departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all such departments or undertakings or branches irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertakings or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertakings or branches (whether set up before or after that date) on the basis of the consolidated profits computed as aforesaid.

Section 17. Adjustment of customary or interim bonus against bonus payable under the Act.

Where in any accounting year -

(a) An employer has paid any puja bonus or other customary bonus to an employees ; or (b) An employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable;

Then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance.

Section 18. Deduction of certain amounts from bonus payable under the Act.

Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall, be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

Section 19. Time-limit for payment of bonus

[(Note: Subs. by Act 23 of 1976, (w.e.f. 25th September, 1975) All amounts] payable to an employee by way of bonus under this Act shall be paid in cash by hi employer.

(a) Where there is a dispute regarding payment of bonus pending before any authority under Sec.22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute; (b) In any other case, within a period of eight months from the close of the accounting year :

Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit ; so, however, that the total period so extended shall not in any case exceed two years.

(Note: Sub-sections (2) to (7) inserted by Act 68 of 1972, Sec.4 omitted by Act 23 of 1976, Sec.13 (w.e.f. 25th September, 1975).

(Note: Sub-section (8) inserted by Act 39 of 1973, Sec.4, omitted by Act 55 of 1973, Sec.2 (w.e.f. 1st September, 1973).

NOTES

Sub-Section (8) of Section 19 was omitted by Payment of Bonus (Amendment) Act No. 55 of 1973 w.e.f. 1.9.1973 and Section 3 of the above Amendment Act is given below:

3. Portion of bonus credited in the provident fund account to be refunded. – Where in pursuance of the provisions of Section 19 of the principal Act, any portion of the bonus paid to an employee in respect of the accounting year commencing on any day in the year 1972 has been remitted by the employer before the commencement of this Act to the authority maintaining the provident fund account of such employee for crediting the same in that account, such authority shall, notwithstanding anything contained in any other law (including any scheme) for the time being in force, refund such portion to the employee”.

Section 20. Application of Act to establishments in public section in certain cases

[(Note: Renumbered by Act 66 of 1980)1] If in any accounting year an establishment in public section sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both is not less than twenty per cent of the gross income of the establishment in public sector for that year, then, the provisions of this Act shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.

[(Note: Ins. by Sec.11, ibid) (2) Save as otherwise provided in sub-section (1), nothing in this Act shall apply to employees employed by any establishment in public sector.]

Section 21. Recovery of bonus due from an employer

Where any money is due to an employee by way of bonus from his employer under a settlement or an award or agreement, the employee himself, or any other person authorised by him in writing in this behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudice to any other mode of recovery made an application to the appropriate Government for the recovery, of the money due to him, and if the appropriate Government or such authority as the appropriate Government may specify in this behalf is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrear of land revenue:

Provided that every such application shall be made within one year from the date on which the money became due to the employee from the employer:

Provided further that any such application may be entertained after the expiry of the said period of one year, if the appropriate Government is satisfied that the applicant had sufficient cause for not making the application within the said period.

Explanation – In this section and in [(Note: Subs. by Act 66 of 1980, (w.e.f. 21st August, 1980) Secs. 22, 23, 24 and 25], “employee” includes a person who is entitled to the payment of bonus under this Act but who is no longer in employment.

Section 22. Reference of dispute under this Act.

Where any dispute arises between an employer and his employees with respect to the bonus payable under this Act or with respect to the application of this Act to an establishment in public sector, then, such dispute shall be deemed to be an industrial dispute within the meaning of the Industrial Dispute Act, 1947 (14 of 1947), or of any corresponding law relating to investigation and settlement of industrial disputes in force in a State and the provisions of that Act or, as the case may be, such law, save as otherwise expressly provided, apply accordingly.

Section 23. Presumption about accuracy of balance-sheet and profit and loss account of corporations and companies

(1) Where, during the course of proceedings before any arbitrator or tribunal under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding law relating to investigation and settlement of industrial disputes in force in a State (hereinafter in this section [(Note: Subs. by Act 23 of 1976, Sec.16 for land in Secs.24 and 25, (w.e.f. 25th September, 1975) and in [(Note: Subs. by Act 66 of 1980, (w.e.f. 21st August, 1980) [Secs. 24 and 25]] referred to as the “said authority”) to which any dispute of he nature specified in Sec.22 has been referred, the balance-sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the Comptroller and Auditor-General of India or by auditors duly qualified to act as auditors of companies under sub-section (1) of Sec.226 of the Companies Act,, 1956 (1 of 1956), are produced before it, then the said authority may presume the statements and the particulars contained in such balance-sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an affidavit or by any other mode:

Provided that where the said authority is satisfied that the statements and particulars contained in the balance-sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.

(2) When an application is made to the said authority by any trade union being a party to the dispute or where there is not trade union, by the employees being a party to the dispute, requiring any clarification relating to any item in the balance-sheet or the profit and loss account, it may, after satisfying itself that such clarification is necessary, by order, direct the corporation or, as the case may be, the company, to furnish to the trade union or the employees such clarification within such time as may be specified in the direction and the corporation or, as the case may be, the company shall comply with such direction.

Section 24. Audited accounts of banking companies not to be questioned

(1) Where any dispute of the nature specified in Sec.22 between an employer, being a banking company, and its employees has been referred to the said authority under that section and during the course of proceedings the accounts of the banking company duly audited are produced before it, the said authority shall not permit any trade union or employees to question the correctness of such accounts, but the trade union or the employees may be permitted to obtain from the banking company such information as is necessary for verifying the amount of bounds due under this Act.

(2) Nothing contained in sub-section (1) shall enable the trade union or the employees to obtain any information which the banking company is not compelled to furnish under the provisions of Sec. 34-A of the Banking Regulation Act, 1949 (10 of 1949).

Section 25. Audit of accounts of employers, not being corporations or companies

(1) Where any dispute of the nature specified in Section 22 between an employer, not being a corporation or a company, and his employees has been referred to the said authority under that section and the accounts of such employer audited by any auditor duly qualified to act as auditor of Companies under sub-section (1) of Section 226 of the Companies Act, 1956 (1 of 1956), are produced before the said authority, the provisions of Section 23, shall, so far as may be, apply to the accounts so audited.

(2) When the said authority finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then it may, by order, direct the employer to get his accounts audited within such time as may be specified in the direction or within such further time as it thinks fit and thereupon the employer shall comply with such direction.

(3) Where an employer fails to get the accounts audited under sub-section (2) the said authority may, without prejudice to the provisions of Sec.28 get the accounts audited by such auditor or auditors as it thinks fit.

(4) When, the accounts are audited under sub-section (2) or sub-section (3) the provisions of Sec.23 shall, so far as may be, apply to the accounts so audited.

(5) The expenses of, and incidental to, any audit under sub-section (3) (including the remuneration of the auditor or auditors) shall be determined by the said authority (which determination shall be final) and paid by the employer and in default of such payment shall be recoverable from the employer in the manner provided in Sec.21

Section 26. Maintenance of register, records, etc.

Every employer shall prepare and maintain such registers, records and other documents in such form and in such manner as may be prescribed.

Section 27. Inspectors

(1) The appropriate Government may, by notification in the official Gazette, appoint such persons as it thinks fit to be Inspectors for the purpose of this Act and may define the limits within which they shall exercise jurisdiction.

(2) Require an employer to furnish such information as he may consider necessary ; (a) At any reasonable time and with such assistance, if any, as he thinks fit, enter any establishment or any premises connected therewith and require any one found in charge thereof to produce before him for examination any accounts, books, registers and other documents relating to the employment of persons or the payment of salary or wage or bonus in the establishment;

(b) Examine with respect to any matter relevant to any of the purposes aforesaid, the employer, his agent or servant or any other person found in charge of establishment or any premises connected therewith or any person whom the Inspector has reasonable cause to believe to be or to have been an employee in the establishment ;

(c) Make copies of, or take extracts from, any book, register or other document maintained in relation to the establishment;

(d) Exercise such other powers as may be prescribed.

(3) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860).

(4) An person required to produce any accounts, book, register or other document or to give information by an Inspector under sub-section (1) shall be legally bound to do so.

[(Note: Subs. by Act 66 of 1980 (w.e.f. 21st August, 1980) (5) Nothing contained in this section shall enable an Inspector to require a banking company to furnish or disclose any statement or information or to produce, or give inspection of, any of its books of account or other documents, which a banking company cannot be compelled to furnish, disclose, produce or give inspection of, under the provisions of Sec. 34-A of the Banking Regulation Act, 1949( 10 of 1949)].

Section 28. Penalty – If any person

(a) Contravenes any of the provisions of this Act or any rule made thereunder; or (b) To whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition.

He shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Section 29. Offences by companies

(1) If the person committing an offence under this Act is 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 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 sub-section (1), where an 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 director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be 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 individuals; and (b) “Director”, in relation to a firm, means a partner in the firm.

Section 30. Cognizance of offences:

(1) No court shall take cognizance of any offence punishable under this Act, save on complaint made by or under the authority of the appropriate Government, [(Note: Ins. by ibid, See.16) or an officer of that Government (not below the rank of a Regional Labour Commissioner in the case of an officer of the Central Government and not below the rank of a labour commissioner the case of an officer of the State Government) specially authority in this behalf by that Government.]

(2) No Court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence publishable under this Act.

Section 31. Protection of action taken under the Act.

No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder.

Section 31-A. Special provision with respect to payment of bonus linked with production or productivity

Notwithstanding anything contained in this Act, -

(i) Where an agreement or a settlement has been entered into by the employees with their employer before the commencement of the Payment of Bonus (Amendment) Act, 1976 (23 of 1976), or (ii) Where the employees enter into any agreement with their employer after such commencement,

For payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this Act, then, such employees shall be entitled to receive bonus due to them under such agreement or settlement, as the case may be :

[(Note: Ins. by Act 66 of 1980, (w.e.f. 21st August, 1980)) Provided that any such agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under Sec.10 shall be null and void in so far as it purports to deprive them of such right :]

[(Note: Subs. by ibid) Provided further that] such employees shall not be entitled to be paid such bonus in excess of twenty per cent, of the salary or wage earned by them during the relevant accounting year.]

Section 32. Act not to apply to certain classes of employees.

Nothing in this Act shall apply to -

(i) Employees employed by any insurer carrying on general insurance business and the employees employed by the Life Insurance Corporation of India ;

(ii) Seaman as defined in Cl. (42) of Sec.3 of the Merchant Shipping Act, 1958 (44 of 1958) ;

(iii) Employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), and employed by registered or listed employers ;

(iv) Employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government or a local authority ;

(v) Employees employed by -

(a) The Indian Red Cross Society or any other institution of a like nature (including its branches) ;

(b) Universities and other educational institutions;

(c) Institutions (including hospitals, chambers of commerce and society welfare institutions) established not for purposes of profit;

(i) Employees employed through contractors on building operations ;

(ii) (Note: Clause (vii) omitted by Act 66 of 1980, (w.e.f. 21st August, 1980)

(iii) Employees employed by the Reserve Bank of India ;

(iv) Employees employed by -

(a) The Industrial Finance Corporation of India;

(b) By Financial Corporation established under Sec.3, or any Joint Financial Corporation established under Sec. 3-A of the State Financial Corporations Act, 1951 (63 of 1951) ;

(d) [(Note: Subs. by Act 61 of 1981) the National Bank for Agriculture and Rural Development;]

(e) the Unit Trust of India;

(f) the Industrial Development Bank of India;

(Note: Omitted by Act 66 of 1980, (w.e.f. 21st August, 1980))

(g) Any other financial institution [(Note: Ins. by ibid) Other than a banking company], being an establishment in public sector, which the Central Government may, by notification in the official Gazette, specify having regard to -

(i) Its capital structure;

(i) Its objectives and the nature of its activities; (ii) The nature and extent of financial assistance or any concession given to it by the Government; and

(iii) Any other relevant factor;

(i) (Note: Clause (x) omitted by Act 23 of 1976, Sec.20, (w.e.f. 25th September, 1975)

(ii) Employees employed by inland water transport establishments operating on routes passing through any other country.

NOTES

Applicability of the provisions of the Bonus Act to employees the Defence ministry canteen stores department. It was held that canteen stores department is an “establishment” engaged in any industry carried on by or under the authority of any department of the Central Government. (Radhu-k-Kallde of Bombay v. Union of India and other (1986) 1 S.C.J.5).

Section 33. Act to apply of certain pending dispute regarding payment of bonus.

Rep. by the Payment of Bonus (Amendment) Act, 1976 (23 of 1976), Section 21 (w.e.f. 25th September, 1975).

Section 34. Employees and employers not to be precluded from entering into agreements for grant of bonus under a different formula.

Nothing contained in this Act shall be construed to preclude employees employed in any establishment or class of establishments from entering into agreements with their employer for granting them an account of bonus under a formula which is different for that under this Act :

Provided that no such agreement shall have effect unless it is entered into with the previous approval of the appropriate Government:

Provided further that any such agreement whereby the employees relinquish their right to receive the minimum bonus under sub-section (2-A) of Section 10 shall be null and void in so far as it purports to deprive them of such right:

Provided also that such employees shall not be entitled to be paid bonus in excess of -

(a) 8.33 per cent of the salary or wage earned by them during accounting year if the employer has no allocable surplus in the accounting year or the amount of such allocable surplus is only so much that, but for the provisions of sub-section (2-A)of Section 10, it would entitle the employees only to receive an amount of bonus which is less than the aforesaid percentage, or (b) Twenty per cent, of the salary or wage earned by them during the accounting year.

NOTES

Employer and workmen enter into settlement before Conciliation Officer on 9th October, 1972 within the meaning of Sec.34 (3) of Payment of Bonus Act – On a reference before the tribunal workmen claims three month Salary as customer’s bonus or 2% of salary as per the Act – Validity of award directing payment of three months basic wages as on 31st March 1972 instead of 31st March 1970 in term 1 of the Settlement. (Dishergarh Power Supply Co., Ltd. v. The Workmen of Dishergarh Power Supply Co., Ltd., (1986) 3 SCJ 247).

Section 34-A. – Effect of laws and agreements inconsistent with the Act.

Subject to the provisions of Sections 31-A and 34, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service.

Section 35. Saving

Nothing contained in this Act shall be deemed to affect the provisions of the Coal Mines Provident Fund and Bonus Schemes Act, 1948 (46 of 1948), or of any scheme made there under.

Section 36. Power of exemption

If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establishments from all or any of the provisions of this Act.

NOTE

The Court has jurisdiction to consider whether the powers under Section 36 has been properly exercised by the Government.

Consideration of the profits for one previous year cannot amount to consideration of “the financial position” of an establishment within the terms of Section 36 of the Bonus Act. (M/s, Fashan Electric Dry Cleaners v. The Government of A.P. (1977) 1 An. A.W.R.27).

Section 37. Power to remove difficulties

Rep. by the Payment of Bonus (Amendment) Act, 1976 (23 of 1976), Section 23 (w.e.f. 25th September, 1975).

Section 38. Power of make rules.

(1) The Central Government may make rules for the purpose of carrying into effect the provision of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for -

(a) The authority for granting permission under the proviso to sub-clause (iii) of Cl. (I) of Sec.2 ;

(b) The preparation of registers, records and other document and the form and manner in which such registers, records and documents may be maintained under Sec.26 ;

(d) Any other matter which is to be, or may be prescribed.

(3) 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 session for a total period of thirty days, which may be comprised in one session [(Note: Subs. by Act 23 of 1976, (w.e.f. 25th September, 1975) or in two or more successive session], and if before the expiry of the session [(Note: Subs. by Sec.21, ibid, (w.e.f. 25th September, 1975) immediately following the session or the successive sessions aforesaid], 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.

Section 39. Application of certain laws not barred.

Save as otherwise expressly provided, the provisions of this Act shall be in addition to and not in derogation of the industrial Disputes Act, 1947 (14 of 1947) or any corresponding law relating The Orient Tavern investigation and settlement of industrial disputes in force in a State.

Section 40. Repeal and saving

(1) The Payment of Bonus Ordinance, 1965 (3 of 1965) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act commenced on the 29th May, 1965.

Schedules

THE FIRST SCHEDULE

[See Sc.4 (a)]

Composition of Gross Profits

Accounting Year Ending ……….

Item No.	Particulars	Amount of sub-items	Amount of main items	Remarks
1	2	3	4	5
1.	Net Profit as shown in the profit and loss Account after making usual and necessary provisions
2.	Add back provision for:

Bonus to employees
Depreciation
Development Rebate Reserve

(If, and to the extent, charged to Profit and Loss Account)

Any other reserves.

(If, and to the extent, charged to Profit and Loss Account)

Total of item No. Rs. 3.Add back also:

(a) Bonus paid to employees in respect of previous accounting years.

(If, and to the extent, charged to Profit and Loss Account)

(b) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of –

The amount, if any, paid to, or provided for payment to, an approved gratuity fund ; and
The amount actually paid to employees on their retirement or on termination of their employment for any reason.

(d) Capital expenditure (other than capital expenditure on scientific research which is allowed to as a deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale of capital assets on which depreciation has been allowed for income-tax).

(If, and to the extent, charged to Profit and Loss Account)

(e) Any amount certified by the Reserve Bank of India in terms of sub-section (2) of Sec.34-A the Regulation Act, 1949 (10 of 1949)

(f) Losses of, or expenditure relating to any business situated outside India. Total of Item No.3 Rs.4.Add also income, profits or gains (if any) credited directly to published or disclosed reserves, other than –

(i) Capital receipts and capital profits (including profits on the sale of capital assets on which depreciation has not been allowed for income-tax);

(ii) Profits of and receipts relating to, any business situated outside India ;

(iii) Income of foreign banking companies from investments outside India. Net total Item No.4 Rs.5.Total of Item Nos. 1,2,3 and 4. Rs.6.Deduct :

(If, and to the extent, credited to Profit and Loss Account)

(a) Capital receipts and capital profits (other than profits on the sale of assets) on which depreciation has been allowed for income-tax.

(b) Profits of, and receipts relating to any business situated outside India.

(d) Expenditure or losses (if any) debited directly to published or disclosed reserves, other than –

Capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax);
Loses of any business situated outside India.

(e) In the case of foreign banking companies proportionate administrative (overhead) expenses of Head Office allocable to Indian business.

(If, and to the extent, credited to Profit and Loss Account)

(f) Refund of any excess direct tax paid for previous accounting years, relating to bonus, depreciation, or development rebate, if written back.

(If, and to the extent, credited to Profit and Loss Account)

(g) Cash subsidy, if any, given by the Government or by any body corporate established by any law for the time being in force of by any other agency through budgetary grants, whether given directly or through any agency for specified purposes and the proceeds of which are reserved for such purposes.

(If, and to the extent, credited to Profit and Loss Account) Total of Item No.6 Rs. 7.Gross Profits for purposes of bonus (Item No.5 minus Item No.6) Rs.

Explanation – In sub-item (b) of item 3, “approved gratuity fund” has the same meaning assigned to it in Cl. (5) of Sec.2 of the Income-tax Act.

[THE SECOND SCHEDULE]

[(Note: Subs. by ibid, Sec.19)

See Sec. 4 (b)]

Computation of Gross Profits

Accounting Year ending …………

Item No.	Particulars	Amount of sub-items	Amount of main items	Remarks
1.	Net Profit as per Profits and Loss Account.
2.	Add back provision for :

Bonus to employees.
Depreciation.
Direct taxes, including the provision (if any) for previous accounting years. (If, and to the extent, charged to Profit and Loss Account.)
[(Note: Subs. by Act 66 of 1980, Sec.19) Development rebate/Investment allowance/Development allowance reserve.] (If, and to the extent, charged to Profit and Loss Account.)
Any other reserves

Total of Item No.2 Rs.3.Add back also:

(If, and to the extent, charged to Profit and Loss Account.)

(a) Bonus paid to employees in respect of previous accounting years.

[(aa) (Note: Ins. by Act 23 of 1976, Sec.26 (w.e.f. (25^th September, 1975)) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of –

The amount, if any, paid to, or provided for payment to, an approved gratuity fund ; and
The amount actually paid to employees on their retirement or on termination of their employment for any reason.]

(b) Donations in excess of the amount admissible for income-tax.

(c) Any annuity due, or commuted value of any annuity paid, under the provisions of Sec. 280-D of the Income-tax Act during the accounting year.

(d) Capital expenditure (other than capital expenditure on scientific research which is allowed as deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale) of Capital assets on which depreciation has been allowed for income-tax or agricultural income-tax).

(e) Losses of, or expenditure relating to, any business situated outside India. Total of Item No.34.Add also Income, profits or gains (if any) credited directly to reserves, other than –

Capital receipts and capital profits including profits on the sale of capital assets on which depreciation has not been allowed for income-tax or agricultural income-tax ;
Profits of, and receipts relating to, any business situated outside India ;
Income of foreign concerns from investments outside India.

Net total of Item No.45.Total of Item Nos. 1,2,3 and 4. 6.Deduct :

(a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax or agricultural income-tax).

(b) Profits of, and receipts relating to, any business situated outside India.

(d) Expenditure or losses (if any) debited directly to reserves, other than –

Capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax or agricultural income-tax) ;
Losses of any business situated outside India.

(e) In the case of foreign concerns proportionate administrative (over head) expenses of Head Office allocable to Indian business.

(In the proportion of Indian Gross Profit (Item No.7) to Total World Gross Profit (as per Consolidated Profit and Loss Account, adjusted as in Item No.2 above only).

(f) Refund of any direct tax paid for previous accounting years and excess provision, if any, of previous accounting years relating to bonus, depreciation, taxation or development rebate or development allowance, if written back.

(Ins. by s 26. (w.e.f. 25^th September, 1975)

(g) [(Note: Subs. by Act 23 of 1976) Cash subsidy, if any, given by the Government or by body corporate established by any law for the time being in force or by any other agency for specified purposes and the proceeds of which are reserved for such purposes.]

Total of Item No.6 Rs. 7. Gross Profits for purposes of bonus (item No.5 minus Item No.6) Rs.

[(Ins. by s 26. (w.e.f. 25th September, 1975) Explanation – In sub-item (aa) of Item 3, “approved gratuity fund” has the same meaning assigned to it in Cl. (5) of Sec.2 of the Income-tax Act.

THE THIRD SCHEDULE]

[See Sec.6 (d)]

Item No.	Category of employer	Further sums to be deducted
(1)		(3)
1.	[(Note: Subs. by ibid, Sec.20) Company, other than a banking company]	The dividends payable on its preference share capital for the accounting year calculated at the actual rate at which such dividends are payable]; 8.5 percent of its paid-up equity share capital as at the commencement of the accounting year ; 6 percent of its reserves shown in its balance-sheet as at the commencement of the accounting year, including any profit carried forward from the previous accounting year : Provided that where the employer is a foreign company within the meaning of Sec.591 of the Companies Act, 1956 (1 of 1956) the total amount to be deducted under this Item shall be 8.5 per cent on the aggregate of the value of the net fixed assets and the current assets of the company in India after deducting the amount of its current liabilities (other than any amount shown as payable by the company to its Head Office whether towards any advance made by the Head Office or otherwise or any interest paid by the Company to its Head Office) in India.
2.	(Note: Ins. by Act 66 of 1980, (w.e.f. 21^st August, 1980).	The Dividends payable on its preference share capital for the accounting year calculated at the rate at which such dividends are payable ; 7.5 per cent of its paid-up equity share of capital as at the commencement of the accounting year ; 5 per cent of its reserves shown in its balance-sheet as at the commencement of the accounting year, including any profits carried forward from the previous accounting year ; Any sum which, in respect of the accounting year, is transferred by it- To a reserve fund under sub-section (1) of Sec.17 of the banking Regulation Act, 1949 (10 of 1949) ; or To any reserves in India in pursuance of any direction or advice given by the Reserve Bank of India, Whichever is higher : Provided that where the banking company is foreign company within the meaning of Sec.591 of the Companies Act, 1956 (1 of 1956), the amount to be deducted under this item shall be the aggregate of – The dividends payable to its preference shareholders for the accounting year at the rate at which such dividends are payable on such amount as bears the same proportion to its total preference share capital as its total working funds in India bear to its total world working funds ; 7.5 per cent, of such amount as bears the same proportion to its total paid-up equity share capital as its total working funds in India bear to its total working funds ; 5 per cent of such amount as bears the same proportion to its total disclosed reserves as its total working funds in India bear to its total working funds ; any sum which, in respect of the accounting year, is deposited by it with the Reserve Bank of India under sub-clause (ii) of Cl. (b) of sub-section (2) of Sec.11 of the Banking Regulation Act, 1949 (10of 1949), not exceeding the amount required under the aforesaid provision to be so deposited.]
3.	Corporation	8.5 per cent of its paid-up capital as at the commencement of the accounting year ; 6 per cent of its reserves, if any, shown in its balance-sheet as at commencement of the accounting year including any profits carried forward from the previous accounting year.
4.	Co-operative-society	8.5 per cent, of the capital invested by such society in its establishment from its books of accounts at the commencement of the accounting year ; Such sum as has been carried forward in respect of the accounting year to reserve fund under any law relating to co-operative societies for the time being in force.
5.	Any other employer not failing under any of the aforesaid categories.	8.5 per cent, of the capital invested by him in his establishment as evidenced from his books of accounts at the commencement of the accounting year ;

Provided that where such employer is a person to whom Chapter XXII-A of the Income-tax Act applies the annuity deposit payable by him under the provisions of that chapter during the accounting year shall also be deducted :

Provided further that where such employer is a firm, an amount equal to 25 per cent, of the gross profits derived by it from the establishment in respect of the accounting year after deducting depreciation in accordance with the provisions of Cl. (a) of Sec.6 by way of remuneration to all the partners taking part in the conduct of business of establishment shall also be deducted, where oral or written, provides for the payment of remuneration to any such partner, and –

The total remuneration payable to all such partners is less than the said 25 per cent, the amount payable, subject to a maximum of forty-eight thousand rupees to each such partner ; or
The total remuneration payable to all such partners is higher than the said 25 percent. Such percentage, or a sum calculated at the rate of forty-eight thousand rupees to each such partner, which ever is less.

Shall be deducted under this proviso :

Provided also that where such employer is an individual or a Hindu undivided family, –

An amount equal to 25 per cent of the gross profits derived by such employer from the establishment in respect of the accounting year after deducting depreciation in accordance with the provisions of Cl. (a) of Sec.6, or
Forth-eight thousand rupees whichever is less, by way of remuneration to such employer, shall also be deducted.

6.Any employer failing under Item No.1 or Item No.3 or Item No.4 or Item No.5 and being a licensee within the meaning or the Electricity (Supply) Act, 1948 (54 of (1948).In additional the sums deductible under any of the aforesaid Items, such sums as are required to be appropriated by the licensee in respect of the accounting year to a reserve under the Sixth Schedule to that Act shall also be deducted.

Explanation – The expression “reserves” occurring in column (3) against Item Nos. [(Note: Omitted by Act 23 of 1976, and by Act 43 of 1977, Sec.19 (w.e.f. 3rd July 1977) 1 (iii), 2 (ii), and 3 (ii)] shall not include any amount set apart for the purpose of –

(i) Payment of any direct tax which, according to the balance-sheet, would be payable.

(ii) Meeting any depreciation admissible in accordance with the provisions of Cl. (a) of Sec.6 ;

(iii) Payment of dividends which have been declared but shall include -

(a) Any amount, over and above the amount referred to in Cl. Of payment of any direct tax; and

(b) Any amount set apart for meeting any depreciation in excess of the amount admissible in accordance with the provisions of Cl. (a) of Sec.6].

THE FOURTH SCHEDULE]

(See Secs. 15 and 16)

In this Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary or wage payable to all the employees is assumed to be Rs.1,04,167. Accordingly, the maximum bonus to which all the employees are entitled to be paid (twenty per cent of the annual salary or wage of all the employees) would be Rs. 2,50,000.

Year	Amount equal to sixty percent or sixty-seven percent, as the case may be, or available surplus allocable as bonus.	Amount payable as bonus	Set on or set off the year carried forward		Total set on or set off carried forward
1	2	3	4		5
Rs. Rs. Rs. Rs. Of year
1.	1,04,167	1,04,167**	Nil	Nil
2.	6,35,000	2,50,000*	Set on 2,50,000*	Set on 2,50,000	(2)
3.	2,20,000	2,50,000* (inclusive of 30,000 from year-2)	Nil	Set on 2,20,000	(2)
4.	3,75,000	2,50,000*	Set on 1,25,000	Set on 2,20,000 1,25,000	(2) (4)
5.	1,40,000	2,50,000* (inclusive of 1,10,000 from year-2)	Nil	Set on 1,10,000 1,25,000	(2) (4)
6.	3,10,000	2,50,000*	Nil 60,000	Set on + 1,25,000 63,300	(2) (4) (6)
7.	1,00,000	2,50,000* (inclusive of 1,25,000 from year-4 and 25,000 from year-6)	Nil	Set on 35,000	(6)
8.	Nil (due to loss)	1,04,167** (inclusive of 35,000 from year-6	Set off 69,167	Set off 69,167	(8)
9.	10,000	1,04,167**	Set off 94,167	Set off 69,167 94,167	(8) (9)
10.	2,15,000	1,04,167** (after setting off 69,167 from year-8 and 41,666 from year-9)	Nil	Set off	(9)

Notes: * Maximum

** Minimum

The balance of Rs.1,10,000 set on from Year-2 lapses.

Rules – Introduction

No. G.S.R. 2367, dated the 21st August, 1975 (Note: Published in the Gazette of India, Pt. II, Sec.3 (I) dated 30th August,1975 p.2580) – In exercise of the powers conferred by Sec.38 of the Payment of Bonus Act,1965 (XXI of 1965), and in super session of the Payment of Bonus Rules, 1965, the Central Government hereby makes the following rules namely

(See Rules 1 to 5)

1. Short title and commencement -

(1) These rules may be called the Payment of Bonus Rules, 1965

(2) These shall come into force at once on the date of their publication in the official Gazette.

2. Definitions – In these rules, -

(a) “Form” means a form appended to these rules; (b) “Act” means the Payment of Bonus Act, 1965(XXI of 1965) ;

3. Authority for granting permission for change of accounting year -

The prescribed authority for the purposes of the proviso to para. (b) of sub-clause (iii) of Cl. (1) of Sec.2 shall be-

(a) In the case of an establishment in relation to which the Central Government is the appropriate Government under the Act, the Chief Labour Commissioner (Central); (b) In any other case, the Labour Commissioner of the State in which the establishment is situated.

4. Maintenance of registers. -

Every employer shall prepare and maintain the following registers, namely:

(a) A register showing the computation of the allocable surplus referred to in Cl. (4) of Sec.2 in Form A ;

(b) A register showing the set-on and set-off of the allocable surplus, under Sec.15, in Form B ;

(c) A register showing the details of the amount of bonus due to each of the employees, the deductions under Secs.17 and 18 and the amount actually disbursed, in Form C.

5. Annual returns -

Every employer shall send a return in Form D to the Inspector so as to reach the said form to the Inspector within 30 days after the expiry of the time limit specified in Sec. 19 for payment of bonus.

Sale of Goods Act

November 30, 2014

Section 1. Short title, extent and commencement

(1) This Act may be called the 2** Sale of Goods Act, 1930.

3[(2) It extends to the whole of Pakistan.]

(3) It shall come into force into force on the first day of July, 1930

1. For Statement of Objects and Reasons and for Report of Special Committee. See Gazette of India, 1929 Pt. V.p. 163: for Report of Select Committed, see ibid., 1930, Pt. V. p.1. This Act has been applied to Phulera in the Excluded Area of Upper Tanawal to the extent the Act is applicable in the N.-W.F.P. subject to certain modifications, and also extended to the Excluded Area of Upper Tanawal (N.-W.F.P.) other than Phulera with effect from such date and subject to such modifications as may be notified, see N.-W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulations, 1950.

It has also been extended to the Leased Areas of Balochistan, see the Leased Areas of Balochistan, see Gazette of India, 1937, Pt. I. p. 1499.

2. The word “Indian” omitted by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), S.3. and Second Schedule.

3. Subs. by the Central Laws (Statute Reforms) Ordinance, 1960 (21 of 1960). S.3. and Second Sched. (with effect from the 14th October, 1955), for subsection (2) which was amended by the A.O., 1949 and Act 26 of 1951.

Section 2. Definitions.

In this Act, unless there is anything repugnant in the subject or context, -

(1) “buyer” means a person who buys or agrees to buy goods;

(2) “delivery” means voluntary transfer of possession from one person to another;

(3) goods are said to be in a “deliverable state” when they are in such state that the buyer would under the contract be bound to take delivery of them;

(4) “document of title to goods” includes a bill of lading, dock- warrant, warehouse keeper’s certificate, wharfingers’ certificate, railway receipt, warrant or order for the delivery of goods and any other document used in ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented;

(5) “fault” means wrongful act or default;

(6) “future goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale;

(7) “goods” means every kind of movable property other than actionable claims and money; and includes 4[electricity, water, gas,] stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

(8) a person is said to be “insolvent” who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed and act of insolvency or not;

(9) “mercantile agent” means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods;

(10) “price” means the money consideration for a sale of goods;

(11) “property” means the general property in goods, and not merely a special property;

(12) “quality of goods” includes their state or condition;

4. Ins. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S,2 with effect from the 7th June, 1962)

(13) “Seller” means a person who sells or agrees to sell goods;

(14) “specific goods” means goods identified and agreed upon at the time a contract of sale is made; and

(15) expressions used but not defined in this act and defined in the Contract Act, 1872 (IX of 1872), have the meanings assigned to them in that Act.

Section 3. Application of provisions of Act of 1872.

The unrepealed provisions of the Contract Act, 1872 (IX of 1872), save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts for the sale of goods.

CHAPTER II – FORMATION OF THE CONTRACT

Contract of Sale

Section 4. Sale and agreement to sell.

(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.

(2) A contract of sale may be absolute or conditional

(3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called in agreement to sell.

(4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

Formalities of the Contract

Section 5. Contract of sale how made.

(1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by installments, or that the delivery or payment or both shall be postponed.

(2) Subject to the provisions of any law for the time being in force a contract of sale may be made in writing or by word of mouth, or partly in writing and party by word of mouth or may be implied from the conduct of the parties.
Subject-matter of Contract

Section 6. Existing or future goods.

(1) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.

(2) There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen.

(3) Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods.

Section 7 Goods perishing before making of contract.

Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.

Section 8. Goods perishing before sale but after agreement to sell.

Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.

The Price

Section 9. Ascertainment of price.

(1) The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties.

(2) Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.

Section 10. Agreement to sell at valuation.

(1) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby avoided:

Provided that, if the goods or any part thereof have been delivered to and appropriated by the buyer, he shall pay a reasonable price thereof.

(2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damages against the party in fault.

Conditions and Warranties

Section 11. Stipulation as to time.

Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract.

Section 12. Condition and warranty.

(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition of a warranty.

(2) A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contact as repudiated.

(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to claim for damages but not to a right to reject the goods and treat the contract as repudiated.

(4) Whether a stipulation in contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.

Section 13. When condition to be treated as warranty,

(1) Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.

(2) Where a contract of sale is not severable and the buyer has accepted the goods are part thereof 5*** the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to that effect.

(3) Nothing in this section shall affect the case of any condition or warranty fulfilment of which is excused by law by reason of impossibility or otherwise.

Section 14. Implied undertaking, as to title, etc.

In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is -

(a) an implied condition on the part of the seller that, in the case of sale, he has a right to sell the goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass;

5. The words and comma “or where the contract is for specific goods the property in which has passed to the buyer,” omitted by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.3 (with effect from the 7th June, 1962).

(b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods;

(c) an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made.

Section 15. Sale by description.

Where there is a contract for the sale of goods by description there is an implied condition that the goods shall correspond with the description; and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

Section 16. Implied conditions as to quality or fitness.

Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or
fitness for any particular purpose of goods supplied under a contract of sale, except as follows:-

(1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller’s skill or judgment, and the goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or products or not), there is an implied condition that the goods shall be reasonably fit for such purposes:

Provided that, in the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition as to its fitness for any particular purpose

(2) Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality:

Provided that, if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed.

(3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.

(4) An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.

[16-A. Seller to inform buyer to defect in goods sold. – Notwithstanding anything contained in section 16, and save where the parties have entered into a agreement to the contrary, the seller shall be under an obligation to inform the buyer of any defect in the goods sold at the time of the contract, except in a case where the defect the defect is obviously known to the buyer.]

Section 17. Sale by sample.

(1) A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect.

(2) In the case of a contract for sale by sample there is an implied condition -

(a) That the bulk shall correspond with the sample in quality;

(b) that the buyer shall have a reasonable opportunity of comparing the bulk with the sample;

(c) that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

CHAPTER III – EFFECTS OF THE CONTRACT

Transfer of Property as between Seller and Buyer

Section 18. Goods must be ascertained.

Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.

Section 19. Property passes when intended to pass.

(1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend in to the transferred.

(2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstance of the case.

(3) Unless a different intention appears, the rules contained in section 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

Section 20. Specific goods in a deliverable state.

Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed.

6. S.16-A, inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.2 with effect from 23-10-1994.

Section 21. Specific goods to be put into a deliverable state.

Where there is a contract for the sale of specific goods and the seller is bound to do something of the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.

Section 22. Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price.

Where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof.

Section 23. Sale of unascertained goods and appropriation.

(1) Where there is a contract for the sale of unascertained or future goods by description and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer, Such assent may be express or implied, and may be given either before or after the appropriation is made.

(2) Delivery to carrier. – Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier to other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right to disposal, he is deemed to have unconditionally appropriated the goods to the contract.

Section 24. Goods sent on approval or “on sale or return”.

When goods are delivered to the buyer on approval or “on sale or return” of other similar terms, the property therein passes to the buyer -

(a) when he signifies his approval or acceptance to the seller or does any other act adopting the transaction;

(b) if he does not signify his approval or acceptance to the seller but retains the does without giving of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time.

Section 25. Reservation of right of disposal.

(1) Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may, be the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to a buyer, or to a carrier or other bailee for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled.

(2) Where goods are shipped or are dispatched by railway and are by the bill of lading or by railway receipt deliverable to the order of the seller or his agent the seller is prima facie deemed to reserve the right of disposal].

(3) Where the seller of goods draws on the buyer for the price and transmits the bill of exchange and ⁸[bill of landing or railway receipt] to the buyer together, to secure acceptance or payment of the bill of exchange, the buyer is bound to return the 9[bill of lading or railway receipt] if he does not honour the bill of exchange and if he wrongfully retains the 10[bill of lading or railway receipt] the
property in the goods does not pass to him.

Section 26. Risk prima facie passes with property.

Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not:

Provided that, where delivery has been delayed through the fault of either buyer or seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault:

Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as a bailee of the goods of the other party.

Transfer of Title

Section 27. Sale by person not the owner

Subject to the provisions of this Act and of any other law for the time being in force, where goods are sole by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller’s authority to sell:

7. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June 1962), for the original subsection (2).

8. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 with effect from the 7th June, 1962), for “bill of lading”

9. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June, 1962), for “bill of lading”.

10. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with effect from the 7th June, 1962), for “bill of lading”.

Provided that, where a mercantile agent is, with the consent of the owner, in possession of the goods or of a document of title to the goods, any sale made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by the owner of the goods to make the same; provided that the buyer acts in goods faith and has not at the time of the contract of sale notice that the seller has not authority to sell.

Section 28. Sale by one of joint owners.

If one of several joint owners of goods has the sole possession of the by permission of the co-owners, the property in the goods is transferred to any person who buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has not authority to sell.

Section 29. Sale by person in possession under voidable contact.

When the seller of goods has obtained possession thereof under a contract voidable under section 19 or section 19-A of the Contract Act, 1872, but the contract has not been rescinded at the time of the sale, the buyer acquires a goods title to the goods, provided he buys them in goods faith and without notice of the seller’s defect of title.

Section 30. Seller or buyer in possession after sale.

(1) Where a person, having sold goods, continues or is in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person or by mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of the previous sale shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same.

(2) Where a person, having bought or agreed to buy goods, obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods shall have effects as if such lien or right did not exist.

CHAPTER IV – PERFORMANCE OF THE CONTRACT

Section 31. Duties of seller and buyer.

It is duty of the seller to deliver the goods of the buyer to accept and pay for them, in accordance with the terms of the contract of sale.

Section 32. Payment and delivery are concurrent conditions.

Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller shall be ready and wiling to give possession of the goods to the buyer in exchange for the price, and the buyer shall be ready and willing to pay the price in exchange for possession of the goods.

Section 33. Delivery.

Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf.

Section 34. Effect of part delivery.

A delivery of party of goods, in progress of the delivery of the whole, has the same effect, for the purpose of passing the property in such goods, as a delivery of the whole; but a delivery of part of the goods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.

Section 35. Buyer to apply for delivery

Apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery.

Section 36. Rules as to delivery.

(1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or if not them in existence, at the place at which they are manufactured or produced.

(2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.

(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf:

Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.

(4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.

(5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller.

Section 37. Delivery of wrong quantity.

(1) Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them, but if the buyer accept the goods so delivered he shall pay for them at the contract rate.

(2) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or 11[if the goods delivered are such that it is difficult or time consuming to separate the quantity contracted for,] he may reject the whole. If the buyer accept the whole of the goods so delivered, he shall pay for them at the contract rate.

(3) Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a different description not included in the contract, the buyer may accept the goods which are in accordance with the contract and reject the rest, or may reject the whole.

(4) The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties.

38. Instalment delivery.(1) Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installments.

(2) Where there is a contract for the sale of goods to be delivered by stated installments which are to be separately paid for and the seller makes no delivery or defective delivery in respect of one or more installments, or the buyer neglects or reduces to take delivery of or pay for one or more installments, it is a question in each case depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a severable breach giving rise to a claim for compensation, but not to a right to treat the whole contract as repudiated.

Section 39. Delivery to carrier or wharfinger.

(1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer or delivery of the goods to a wharfinger for sale custody, is a prima facie deemed to be delivery of the goods to the buyer.

(2) Unless otherwise authorised by the buyer, the seller shall make such contract with the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. If the seller omits so to do and the goods are lost or damaged in course of transit or whilst in the custody of the wharfinger, the buyer may decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages.

(3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in circumstances in which it is usual to insure, the seller shall such notice to the buyer as may enable him to insure them during their sea transit, and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.

11. Inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.3 w.e.f. 23-10-1994.

Section 40. Risk where goods are delivered at distant place.

Where the seller of goods agrees to deliver them at his own risk at a place other than where they, are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.

Section 41. Buyer’s right of examining the goods.

(1) Where goods are delivered to the buyer which he has not previously examined, he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are conformity with the contract.

(2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract.

Section 42. Acceptance.

The buyer is deemed to have accepted the goods when he intimates to the seller, that he has accepted them, or when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller, or when, after the lapse of a reasonable time he retains the goods without intimating to the seller that he has rejected them.

Section 43. Buyer not bound to return rejected goods.

Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient if he intimates to the seller that he refuses to accept them.

Section 44. Liability of buyer for neglecting or refusing delivery of goods.

When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods:

Provided that nothing in this section shall affect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract.

CHAPTER V – RIGHT OF UNPAID SELLER AGAINST THE GOODS

Section 45. “Unpaid seller” defined.

(1) The seller of goods is deemed to be an “unpaid seller” within the meaning of this Act

(a) when the whole of the price has not been paid or tendered;

(b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise.

(2) In this Chapter, the term “seller” includes any person who is in the position of a seller, as, for instance, an agent of the seller to whom the bill of landing has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price.

Section 46. Unpaid seller’s rights.

(1) Subject to the provisions of the Act and of any law for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implications of law

(a) a lien on the goods for the price while he is in possession of them;

(b) in case of the insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them;

(2) Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and co-extensive with his rights of lien and stoppage in transit where the property has passed to the buyer.
Unpaid Seller’s Lien

Section 47. Seller’s lien.

(1) Subject to the provisions of this Act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely:-

(a) where the goods have been sold without any stipulation as to credit;

(b) where the goods have been sold on credit, but the term of credit has expired;

(2) The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for the buyer.

Section 48. Part delivery.

Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstance as to show an agreement to waive the lien.

Section 49. Termination of lien.

(1) The unpaid seller of goods loses his lien thereon -

(a) when he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods;

(b) when the buyer or his agent lawfully obtains possession of the goods;

(2) The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained a decree for the price of the goods.
Stoppage in Transit

Section 50. Right of stoppage in transit.

Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, that is to say, he may resume possession of the goods as long as they are in the course of transit, and may retain them until the payment or tender of the price.

Section 51. Duration of transit.

(1) Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent in that behalf takes delivery of them from such carrier or other bailee.

(2) If the buyer or his agent in that behalf obtains delivery of the goods before their arrival at the appointed destination, the transit is at an end.

(3) If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end it is immaterial that a further destination for the goods may have been indicated by the buyer.

(4) If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the transit is not deemed to be at an end, even if the seller has refused to receive them back.

(5) When goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier or as agent of the buyer.

(6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf, the transit is deemed to be at an end.

(7) Where part delivery of the goods has been made to the buyer or his agent in that behalf, the remainder of the goods may be stopped in transit, unless such part delivery has been given in such circumstances as to show an agreement to give up possession of the whole of the goods.

Section 52. How stoppage in transit is effected.

(1) The unpaid seller may exercise his right of stoppage in transit either by taking actual possession of the goods, or by giving notice of his claim to the carrier of other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the later case the notice, to be effectual, shall be given at such time and in such circumstances that the principal, by the exercise of reasonable diligence, may communicate it to his servant or agent in time to prevent a delivery to the buyer

(2) When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to or according to the directions of the seller. The expenses of such re-delivery shall be borne by the seller.
Transfer by Buyer and Seller

Section 53. Effect of sub-sale or pledge by buyer.

(1) Subject to the provisions of this Act, the unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto:

Provided that where a document of title to goods has been issued or lawfully transferred to any person as buyer or owner of the goods, and that person transfers the documents to a person who takes the documents in good faith and for consideration, then, if such last mentioned transfer was by way of sale, the unpaid seller’s right of lien or stoppage in transit is defeated, and if such last mentioned transfer was by way of pledge or other disposition for value, the unpaid seller’s right of lien or stoppage in transit can only be exercised subject to the rights of the transferee.

(2) Where the transfer is by way of pledge, the unpaid seller may require the pledge to have the amount secured by the pledge satisfied in the first instance, as far as possible, out of any other goods or securities of the buyer in the hands of the pledgee and available against the buyer.

Section 54. Sale not generally rescinded by lien or stoppage in transit.

(1) Subject to the provision of this section, a contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien or stoppage in transit.

(2) Where the goods are of a perishable nature, or where the unpaid seller who has exercised his right of lien or stoppage in transit gives notice to the buyer of his intention to re-sell, the unpaid seller may, if the buyer does not within a reasonable time pay or tender the price, re-sell the goods within a reasonable time and recover from the original buyer damages for any loss occasioned by his breach of contract, but the buyer shall not be entitled to any profit which may occur on the re-sale. If such notice is not given, the unpaid seller shall not be entitled to recover such damages and the buyer shall be entitled to the profit, if any, on the re-sale.

(3) Where in unpaid seller who has exercised his right of lien or stoppage in transit re-sells the goods, the buyer acquires a good title thereto as against the original buyer, notwithstanding that no notice of the re-sale has been given to the original buyer.

(4) Where the seller expressly reserves a right of re-sale in case the buyer should make default, and, on the buyer making default, re-sells the goods, the original contract of sale is thereby rescinded, but without prejudice to any claim which the seller may have for damages.

Chapter VI- SUITS FOR BREACH OF THE CONTRACT

Section 55. Suit of price.

(1) Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods.

(2) Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.

Section 56. Damages for non-acceptance.

Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non-acceptance.

Section 57. Damages for non-delivery.

Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer, may sue the seller for damages for non-delivery.

Section 58. Specific performance.

Subject to the provisions of Chapter II of the Specific Relief Act, 1877, in any suit for breach of contract to deliver specific or ascertained goods, the Court may, if it thinks fit, on the applications of the plaintiff, by its decree direct that the contract shall be performed specifically, without giving the defendant the option of retaining the goods on payment of damages. The decree may be unconditional, or upon such terms and conditions as to damages, payment of the price or otherwise, as the Court may deem just, and the application of the plaintiff may be made at any time before the decree.

Section 59. Remedy for breach of warranty.

(1) Where there is a breach of warranty by the seller, or where the buyer elects or is compelled to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer is not by reason only or such breach of warranty entitled to reject the goods; but he may—

(a) set up against the seller the breach of warranty in diminution or extinction of the price; or

(b) sue the seller for damages for breach of warranty

(2) The fact that a buyer has set up a breach of warranty in diminution or extinction of the price does not prevent him from suing for the same breach of warranty if he has suffered further damage.

Section 60. Repudiation or contract before due data

Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contract as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach.

Section 61. Interest by way of damages and special damages.

(1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case where by law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed.

(2) In the absence of a contact to the contract, the Court may award interest at such rate as it thinks fit on the amount of the price -

(a) to the seller in a suit by him for the amount of the price – from the date of the tender of the goods or from the date on which the price was payable;

(b) to the buyer in a suit by him for the refund of the price in case of a breach of the contract on the part of the seller – from the date on which the payment was made.

CHAPTER VII – MISCELLANEOUS

Section 62. Exclusion of implied terms and conditions.

Where any right, duty or liability would arise under a contract of sale by implication of law, it may be negatived or varied by express agreement or by the course of dealing between the parties, or by usage, if the usage is such as to bind both parties to the contract.

Section 63. Reasonable time a question of fact.

Where in this Act any reference is made to a reasonable time, the question what is a reasonable time is a question of fact.

Section 64. Auction sale.

In the case of a sale by auction -

(1) where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale;

(2) the sale is complete when the auctioneer announces its completion by the fail of the hammer or in other customary manner; and, until such announcement is made, any bidder may retract his bid;

(3) a right to bid may be reserved expressly by or on behalf of the seller and, where such right is expressly so reserved, but not otherwise, the seller or any one person on his behalf may, subject to the provisions hereinafter contained, bid at the auction;

(4) where the sale is not notified to be subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ any parson to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or any such person; and any sale contravening this rule may be treated as fraudulent by the buyer;

(5) the sale may be notified to be subject to a reserved or upset price;

(6) if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer.

¹²[64-A. In contracts of sale amount of increased or decreased duty to be added or deducted. – In the event of any duty of customs or excise ¹³[or tax] on any goods being imposed, increased, decreased or remitted after the making of any contract for the sale of such goods without stipulation ¹⁴[as to the payment of duty or tax where duty or tax] was not chargeable at the time of the making of the contract, or for the sale of such goods ¹⁵[duty paid or tax paid where duty or tax] was chargeable at that time,

(a) if such imposition or increase so takes effect that 16[the duty or tax or increased duty or tax] as the case may be, or any part thereof, is paid, the seller may add so much to the contract price as will be equivalent to the amount paid ¹⁷[in respect of such duty or tax or increase of duty or tax] and he shall be entitled to be paid and to sue for and recover such addition, and

12. S.64-A ins. by the Indian Sale of Goods (Amendment) Act, 1940 (41 of 1940), S.2.
13. Ins. by the Sale of Goods (Amdt.) Act, 1956 (5 of 1956), S.2 (with effect from the 11th April, 1956).
14. Subs. ibid. (with effect from the 11th April, 1956) for “as to the payment of duty where duty”.
15. Subs. by the Sale of Goods (Amendment) Act, 1956), S.2 (with effect from the 11th April, 1956), for “duty paid where duty”.
16. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956) (with effect from the 11th April, 1956), for “the duty or increased duty”.

(b) if such decrease or remission so takes effect that the decreased duty 18[or tax] only or no duty 19[or tax], as the case may be, is paid, the buyer may deduct so much from the contract price as will be equivalent to the decrease of duty 20[or tax] or remitted duty 21[or tax], and he shall not be liable to pay, or be sued for or in respect of, such deduction.]

²²[Explanation.—The word “tax” in this section means the tax payable under the Sales Tax Act, 1951].

Section 65. [Repeal].

-Rep. by the Repealing Act, 1938 (I of 1938), S.2. and Schedule.

Section 66. Savings.

-(1) Nothing in this Act or in any repeal effected thereby shall affect or be deemed to affect—

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the commencement of this Act, or

(b) any legal proceedings or remedy in respect of any such right, title, interest, obligation or liability, or

(d) any enactment relating to the sale of goods which is not expressly repealed by this Act, or

(e) any rule of law not inconsistent with this Act.

(2) The rules of insolvency relating to contracts of sale do not apply to any transaction in the form of a contract of sale which is intended to operate by way of mortgage, pledge, charge or other security.

17. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956), (with effect from the 11th April, 1956), for “in respect of such duty or increase of duty”.
18. Ins. ibid. (with effect for the 11th April, 1956).
19. Ins. ibid. (with effect for the 11th April, 1956).
20. Ins. ibid. (with effect for the 11th April, 1956).
21. Ins. ibid. (with effect for the 11th April, 1956).
22. Explanation added ibid. (with effect from the 11th April, 1956).

entries relating to firms are to be made therein, and the mode in which such entries are to be amended or notes made therein.

(d) regulating the procedure of the Registrar when disputes arise;

(e) regulating the filing of documents received by the Registrar;

(f)prescribing conditions for the inspection of original documents;

(g) regulating the grant of copies;

(h) regulating the elimination of registers and documents;

(i) providing for the maintenance and form of an index to the Register of Firms; and

(j) generally, to carry out the purposes of this Chapter.

(3) All rules made under this section shall be subject to the conditions of previous publications:

19[Provided further that the fees payable for any service desired on the same day on which an application for the same is made may be double the aforesaid maximum fees.]

Chapter VIII-SUPPLEMENTAL

Section 72. Mode of giving public notice.

A public notice under this Act is given

(a) where it relates to the retirement or expulsion of a partner from a registered firm, or to the dissolution of a registered firm, or to the election to become or not to become a partner in a registered firm by a person attaining majority who was admitted as a minor to the benefits of partnership, by notice to the Registrar of Firms under section 63, and by publication in the 20[official Gazette] and in at least one vernacular newspaper circulating in the district where the firm to which in relates has its place or principal place of business, and

(b) in any other case, by publication in the 20[official Gazette] and in at least one vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business.

Section 73. [Repeals.]

Rep. by the Repealing Act, 1938 (I of 1938), S.2 and Schedule.

19. Proviso added by Partnership (Amendment) Ordinance (XIX of 1981), S.3 dated 18-5-1981

20. Substituted by A.O., 1937, for “local official Gazette”.

Section 74. Savings.

Nothing in this Act or any repeal effected thereby shall affect or be deemed to effect -

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the commencement of this Act, or

(b) any legal proceeding or remedy in respect of any such right, title, interest, obligation or liability, or anything done or suffered before the commencement of this Act, or

(d) any enactment relating to partnership not expressly repealed by this Act, or

(e) any rule of insolvency relating to partnership, or

(f) any rule of law not inconsistent with this Act.

SCHEDULE-

21[SCHEDULE I]
MAXIMUM FEES
[See subsection (1) of section 71]

Document or act in respect of which the fee is payable Maximum Fees

Statement under section 58 50

Statement under section 60 20

Intimation under section 61 20

Intimation under section 62 20

Notice under section 63 20

Application under section 64 20

Inspection of the Register of Firms under subsection (1) of

section 66 5

Inspection of documents relating to a firm under subsection
(2) of section 66 or any other document in the custody of the

Registrar of Firms 5

Copies from the Register of Firms Rs. 2 for each

100 words or part thereof.]

SCHEDULE II.—[ENACTMENTS REPEALED]. Rep. by the Repealing Act, 1938 (1 of 1938), section 2 and Schedule.

Cinematograph Act

November 30, 2014

Chapter I – Preliminary

Section 1. Shot title, extent and commencement.

ACT NO. 37 OF 1952 1* [21st March, 1952.]

An Act to make provision for the certification of cinematograph films for exhibition and for regulating exhibitions by means of cinematographs. Be it enacted by Parliament as follows:-

(1) This Act may be called the Cinematograph Act, 1952.

(2) Parts I, II and IV extends to the whole of India ¹[***] and Part III extends to ²[the Union territories] only.

(3) This Act shall come into force on such date³ as the Central Government may, by notification in the Official Gazette, appoint:

⁴[Provided that Parts I and II shall come into force in the State of Jammu and Kashmir only on such date after the commencement of the Cinematograph (Amendment) Act, 1973 (26 of 1973), as the Central Government may, by notification in the Official Gazette, appoint.]

——————————————————

1. The words “except the State of Jammu and Kashmir” omitted by Act 25 of 1973, sec. 2 (w.e.f. 28-5-1973).

2. Subs. by Act 3 of 1959, sec. 2, for “Part C States” (w.e.f. 12-3-1959).

3. Came into force on 28-7-1952, vide S.R.O. 1066, dated the 10th June, 1952, published in the Gazette of India, 1952, Pt. II, Sec. 3, p. 945.

4. The proviso added by Act 25 of 1973, sec. 2 (w.e.f. 28-5-1973).

Section 2. Definitions.

In this Act, unless the context other wise requires,-

(a) “adult” means a person who has completed his eighteenth year;

¹[(b) “Board” means the Board of Film Certification constituted by the Central Government under section 3;]

²[(bb) “certificate” means the certificate granted by the Board under section 5A;]

(d) “district magistrate”, in relation to a presidency-town, means the Commissioner of police;

³[(dd) “film” means a cinematograph film;]

(e) “place” includes a house, building, tent and any description of transport, whether by sea, land or air;

(f) “prescribed” means prescribed by rules made under this Act;

⁴[(g) “regional officer” means a regional officer appointed by the Central Government under section 5 and includes an additional regional officer and an assistant regional officer;

(h) “Tribunal” means the Appellate Tribunal constituted under section 5D.]

———————-

1. Subs. by Act 49 of 1981, sec. 2, for clause (b) (w.e.f. 1-6-1983).

2. Ins. by Act 49 of 1981, sec. 2 (w.e.f. 1-6-1983).

3.Ins. by Act 3 of 1959, sec. 3 (w.e.f. 12-3-1959).

4. Ins. by Act 49 of 1981, sec. 2 (w.e.f. 1-6-1983).

Section 2-A. Construction of reference to any law not in force or any functionary not in existence in the State of Jammu and Kashmir.

Any reference in this Act to any law which is not in force, or any functionary not in existence, in the state of Jammu and Kashmir, shall, in relation to that Stat, be construed as a reference to the corresponding law in force, or to the corresponding functionary in existence, in that State.

—-

1. Ins. by Act 25 of 1973, sec. 3 (w.e.f. 28-5-1973).

Chapter II – CERTIFICATION OF FILMS FOR PUBLIC EXHIBITION

Section 3. Board of Film Censors.

¹3. Board of Film Censors

(1) For the purpose of sanctioning films for public exhibition, the Central Government may, by notification in the official Gazette, constitute a Board to be called the ²[Board of Film Certification which shall consist of a Chairman and ³not less than twelve and not more than twenty five] other members appointed by the Central Government.

(2) The Chairman of the Board shall receive such salary and allowance as may be determined by the Central Government, and the other members shall receive such allowances or fees for attending the meetings of the Board as may be prescribed.

(3) The other terms and conditions of service of the members of the Board shall be such as may be prescribed

———————

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. Subs. by Act 49 of 1981, sec. 3, for “Board of Film Censors” (w.e.f. 1-6-1983)

3. Subs. by Act 49 of 1981, sec. 3, for “not more than nine” (w.e.f. 1-6-1983).

Section 4. Examination of films.

¹[4. Examination of films.—(1) Any person desiring to exhibit any film shall in the prescribed manner make an application to the Board for a certificate in respect thereof, and the Board may, after examining or having the film examined in the prescribed manner,—

(i) sanction the film for unrestricted public exhibition:²[***]

³[Provided that, having regard to any material in the film, if the Board is of the opinion that it is necessary to caution that the question as to whether any child below the age of twelve years may be allowed to see such a film should be considered by the parents or guardian of such child, the Board may sanction the film for unrestricted public exhibition with an endorsement to that effect; or]

(ii) sanction the film for public exhibition restricted to adults; or

⁴[(iia) sanction the film for public exhibition restricted to members of any profession or any class of persons, having regard to the nature, content and theme of the film; or]

⁵[(iii) direct the applicant to carry out such excisions or modifications in the film as it thinks necessary before sanctioning the film for public exhibition under any of the foregoing clauses; or]

(iv) refuse to sanction the film for public exhibition.

(2) No action under ⁶[the proviso to clause (i), clause (ii), clause (iia), clause (iii) or clause (iv)] of sub-section (1) shall be taken by the Board except after giving an opportunity to the applicant for representing his views in the matter.]

————————

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. The word “or” omitted by Act 49 of 1981, sec. 4 (w.e.f. 1-6-1983).

3. The proviso added by Act 49 of 1981, sec. 4 (w.e.f. 1-6-1983).

4. Ins. by Act 49 of 1981, sec. 4 (w.e.f. 1-6-1983).

5. Subs. by Act 49 of 1981, sec. 4, for clause (iii) (w.e.f. 1-6-1983).

6. Subs. by Act 49 of 1981, sec. 4, for “clause (ii), clause (iii) or clause (iv)” (w.e.f. 1-6-1983).

Section 5. ADVISORY PANELS.

¹5.ADVISORY PANELS-(1) For the purpose of enabling the Board of efficiently discharge its functions under this Act, the Central Government may establish at such regional centers as it thinks fit, advisory panels each of which shall consist of such number of persons being persons qualified in the opinion of the Central Government may think fit to appoint thereto.

(2) At each regional center there shall be as many regional officers as the Central Government may think fit to appoint and rule made in this behalf may provide for the association of regional officers in the examination of films.

(3) The Board may consult in such manner as may be prescribed any advisory panel in respect of any film for which an application for a certificate has been made.

(4) It shall be the duty of every such advisory panel whether acting as a body or in committees as may be provided in the rules made in this behalf to examine the film and to make such recommendations to the Board as it thinks fit.

(5) The members of the advisory panel shall not be entitled to any salary but shall receive such fees or allowances as may be prescribed.

————-

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

Section 5-A. CERTIFICATION OF FILMS.

¹[5A. Certification of films.—²[(1) If, after examining a film or having it examined in the prescribed manner, the Board considers that—

(a) the film is suitable for unrestricted public exhibition, or, as the case may be, for unrestricted public exhibition with an endorsement of the nature mentioned in the proviso to clause (i) of sub-section (1) of section 4, it shall grant to the person applying for a certificate in respect of the film a “U” certificate or, as the case may be, a “UA” certificate; or

(b) the film is not suitable for unrestricted public exhibition, but is suitable for public exhibition restricted to adults or, as the case may be, is suitable for public exhibition restricted to members of any profession or any class of persons, it shall grant to the person applying for a certificate in respect of the film an “A” certificate or, as the case may be, a “S” certificate.

and cause the film to be so marked in the prescribed manner:

Provided that the applicant for the certificate, any distributor or exhibitor or any other person to whom the rights in the film have passed shall not be liable for punishment under any law relating to obscenity in respect of any matter contained in the film for which certificate has been granted under clause (a) or clause (b).]

(2) A certificate granted or an order refusing to grant a certificate in respect of any film shall be published in the Gazette of India.

(3) Subject to the other provisions contained in this Act, a certificate granted by the Board under this section shall be valid throughout India for a period of ten years.]

—————–

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. Subs. by Act 49 of 1981, sec. 5, for sub-section (1) (w.e.f. 1-6-1983)

Section 5-B. PRICIPLES FOR GUIDANCE IN CERTIFYING FILMS.

¹[5B. Principles for guidance in certifying films.—(1) A film shall not be certified for public exhibition if, in the opinion of the authority competent to grant the certificate, the film or any part of it is against the interests of

²[the sovereignty and integrity of India] the security of the State, friendly relations with foreign States, public order, decency or morality, or involves defamation or contempt of court or is likely to incite the commission of any offence.

(2) Subject to the provisions contained in sub-section (1), the Central Government may issue such directions as it may think fit setting out the principles which shall guide the authority competent to grant certificates under this Act in sanctioning films for public exhibition.]

—————–

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. Ins. by Act 49 of 1981, sec. 6 (w.e.f. 1-6-1983).

Section 5-C. APPEALS.

¹[²5-C. APPEALS. –(1) Any person applying for a certificate in respect of a film who is aggrieved by any order of the Board -

(a) Refusing to grant a certificate ; or

(b) Granting only an “A” certificate ; or

(d) Granting only a “UA” certificate ; or

(e) Directing the applicant to carry out any excisions or modifications,may, within thirty days from the date of such order, prefer an appeal to the Tribunal :

Provided that the Tribunal may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the aforesaid period of thirty days, allow such appeal to be admitted within a further period of thirty days.

(2) Every appeal under this section shall be made by a petition in writing and shall be accompanied by a brief statement of the reasons for the order appealed against where such statement has been furnished to the appellant and by such fees, not exceeding rupees one thousand, as may be prescribed.

—————-

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. Subs. by Act 49 of 1981, sec. 7, for section 5C (w.e.f. 1-6-1983).

Section 5-D. CONSTITUTION OF APPELLATE TRIBUNAL.

¹5-D. CONSTITUTION OF APPELLATE TRIBUNAL.(1) For the purpose of hearing appeals against any order of the Board under Section 5-C, the Central Government shall, by notification in the Official Gazette, constitute an Appellate Tribunal.

(2) The head office of the Tribunal shall be at New Delhi or at such other place as the Central Government may, by notification in the Official Gazette, specify.

(3) Such Tribunal shall consist of a Chairman and not more than four other members appointed by the Central Government.

(4) A person shall not be qualified for appointment as the Chairman of the Tribunal unless he is a retired Judge of a High Court, or is a person who is qualified to be a Judge of a High Court.

(5) The Central Government may appoint such persons who, in its opinion, are qualified to judge the effect of films on the public, to be members of the Tribunal.

(6) The Chairman of the Tribunal shall receive such salary and allowances as may be determined by the Central Government and the members shall receive such allowances or fees as may be prescribed.

(7) Subject to such rules as may be made in this behalf, the Central Government may appoint a Secretary and such other employees as it may think necessary for the efficient performance of the functions of the Tribunal under this Act.

(8) The Secretary to, and other employees of, the Tribunal shall exercise such powers and perform such duties as may be prescribed after consultation with the Chairman of the Tribunal.

(9) The other terms and conditions of service of the Chairman and members of, and the Secretary to, and other employees of, the Tribunal shall be such as may be prescribed.

(10) Subject to the provisions of this Act, the Tribunal may regulate its own procedure.

(11) The Tribunal may, after making such inquiry into the matter as it

considers necessary, and after giving the appellant and the Board an opportunity of being heard in the matter, make such order in relation to a film as it thinks fit and the Board shall dispose of the matter in conformity with such order.

————————

1. Ins. by Act 49 of 1981, sec. 8 (w.e.f. 1-6-1983).

Section 5E-Suspension and revocation of certificate.

¹5E-Suspension and revocation of certificate.

Suspension and revocation of certificate- (1) Notwithstanding anything contained in sub section (2) of Section 6,the Central Government may, by notification in the Official Gazette, suspend a certificate granted under this Part, for such period as it thinks fit or may revoke such certificate if it is satisfied that-

(i) The film in respect of which the certificate was granted, was being exhibited in a form other than the one in which it was certified , or

(ii) The film or any part thereof it being exhibited in contravention of the provisions of this part rules made there under.

(2) Where a notification under sub-section (1) has been published, the Central Government may require the applicant for certificate or any other person to whom the rights in the film have passed, or both, to deliver up the certificate and all duplicate certificates, if any, granted in respect of the film to the Board or to any person or authority specified in the said notification.

(3) No action under this section shall be taken except after giving an opportunity to the person concerned for representing his views in the matter.

(4) During the period in which a certificate remains suspended under this section, the film shall be deemed to be an uncertified film.

————————–

1. Ins. by Act 49 of 1981, sec. 8 (w.e.f. 1-6-1983).

Section 5-F. REVIEW OF ORDERS BY CENTRAL GOVERNMENT.

(1) Where an applicant for a certificate or any other person to whom the rights in the film have passed, is aggrieved by any order of the Central Government under Section 5-E, he may, within sixty days of the date of publication of the notification in the Official Gazette, make an application to the Central Government for review of the order, setting out in such application the grounds on which he considers such review to be necessary:

Provided that the Central Government may, if it is satisfied that the applicant for a certificate or that other person was prevented by sufficient cause from filing an application for review within the aforesaid period of sixty days, allow such application to be filed within a further period of sixty days.

(2) On receipt of the application under sub-section (1), the Central Government may, after giving the aggrieved person a reasonable opportunity of being heard, and after making such further inquiry, as it may consider necessary, pass such order as it thinks fit, confirming, modifying or reversing its decision and the Board shall dispose of the matter in conformity with such order.

————————-

1.Ins. by Act 49 of 1981, sec. 8 (w.e.f. 1-6-1983).

Section 6. Revisional powers of the Central Government.

¹[6. Revisional powers of the Central Government.—(1) Notwithstanding anything contained in this Part, the Central Government ²[may, of its own motion, at any stage,] call for the record of any proceeding in relation to any film which is pending before, or has been decided by, the Board, ³[or, as the case may be, decided by the Tribunal (but not including any proceeding in respect of any matter which is pending before the Tribunal)] and after such inquiry, into the matter as it considers necessary, make such order in relation thereto as it thinks fit, and the Board shall dispose of the matter in conformity with such order:

Provided that no such order shall be made prejudicially affecting any person applying for a certificate or to whom a certificate has been granted, as the case may be, except after giving him an opportunity for representing his views in the matter:

³[Provided further that nothing in this sub-section shall require the Central Government to disclose any fact which it considers to be against public interest to disclose.]

(2) Without prejudice to the powers conferred on it under sub-section (1), the Central Government may, by notification in the Official Gazette, direct that—

(a) a film which has been granted a certificate shall be deemed to be an uncertified film in the whole or any part of India; or

(b) a film which has been granted a “U” certificate ³[or a “UA” certificate or a “S” certificate] shall be deemed to be a film in respect of which an “A” certificate has been granted; or

⁴[(c) the exhibition of any film be suspended for such period as may be specified in the direction:]

⁵[Provided that no direction issued under clause (c) shall remain in force for more than two months from the date of the notification.]

(3) No action shall be taken under clause (a) or clause (b) of sub-section (2) except after giving an opportunity to the person concerned for representing his views in the matter.

(4) During the period in which a film remains suspended under clause (c) of sub-section (2), the film shall be deemed to be an uncertified film.]

—————–

1. Section 3, 4, 5, 5A, 5B, 5C and 6 subs. by Act 3 of 1959, sec. 4, for sections 3, 4, 5 and 6 (w.e.f. 12-3-1959).

2. Subs. by Act 49 of 1981, sec. 9, for ‘‘may at any stage’’ (w.e.f. 1-6-1983).

3. Ins. by Act 49 of 1981, sec. 9 (w.e.f. 1-6-1983).

4. Ins. by Act 19 of 1953, sec. 2 (w.e.f. 16-5-1953).

5. Subs. by Act 19 of 1953, sec. 2, for the proviso (w.e.f. 16-5-1953).

Section 6-A.-Information and documents to be given to distributors and exhibitors with respect to certified films.

¹ 6-A.-Information and documents to be given to distributors and exhibitors with respect to certified films. Information and documents to be given to distributors and exhibitors with respect to certified films – Any person who delivers any certified film to any distributor or exhibitor shall, in such manner as may be prescribed, notify to the distributor or exhibitor, as the case may be, the title, the length of the film, the number and the nature of the certificate granted in respect thereof and the conditions, if any, subject to which it has been so granted, and any other particulars respecting the film which may be prescribed.

²[***]

1. Ins. by Act 19 of 1953, sec. 3 (w.e.f. 16-5-1953).

2. Section 6B omitted by Act 56 of 1984, sec. 2 (w.e.f. 27-8-1984) Earlier section 6B was inserted by Act 49 of 1981, sec. 10 (w.e.f. 1-6-1983).

Section 7. Penalties for contraventions of this Part.

¹[(1) If any person—

(a) exhibits or permits to be exhibited in any place—

(i) any film other than a film which has been certified by the board as suitable for unrestricted public exhibition or for public exhibition restricted to adults ²[or to members of any profession or any class of persons] and which, when exhibited, displays the prescribed mark of the Board and has not been altered or tampered with in any way since such mark was affixed thereto,

(ii) any film, which has been certified by the Board as suitable for public exhibition restricted to adults, to any person who is not an adult, ³[***].

²[(iia) any film which has been certified by the Board as suitable for public exhibition restricted to any profession or class of persons, to a person who is not a member of such profession or who is not a member of such class, or]

(b) without lawful authority (the burden of proving which shall be on him), alters or tampers with in any way any film after it has been certified, or

(c) fails to comply with the provision contained in section 6A or with any order made by the Central Government or by the Board in the exercise of any of the powers or functions conferred on it by this Act or the rules made thereunder,

⁴[⁵[he shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one lakh rupees, or with both, and in the case of a continuing offence with a further fine which may extend to twenty thousand rupees for each day during which the offence continues:

Provided that a person who exhibits or permits to be exhibited in any place a video film in contravention of the provisions of sub-clause (i) of clause (a) shall be punishable with imprisonment for a term which shall not be less than three months, but which may extend to three years and with fine which shall not be less than twenty thousand rupees, but which may extend to one lakh rupees, and in the case of a continuing offence with a further fine which may extend to twenty thousand rupees for each day during which the offence continues:

Provided further that a court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months, or a fine of less than twenty thousand rupees]]:

⁶[Provided further that] notwithstanding anything contained in section 29 of the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for any Metropolitan Magistrate, or any Judicial Magistrate of the first class specially empowered by the State Government in this behalf, to pass a sentence of fine exceeding five thousand rupees on any person convicted of any offence punishable under this Part:

⁷[Provided also] that no distributor or exhibitor or owner or employee of a cinema house shall be liable to punishment for contravention of any condition of endorsement of caution on a film certified as “UA” under this Part.]

(2) If any person is convicted of an offence punishable under this section committed by him in respect of any film, the convicting court may further direct that the film shall be forfeited to the Government.

(3) The exhibition of a film, in respect of which an “A” certificate ⁸[or a “S” certificate or a “UA” certificate] has been granted, to children below the age of three years accompanying their parents or guardians shall not be deemed to be an offence within the meaning of this section.

————————

1. Subs. by Act 19 of 1953, sec. 4, for sub-section (1) (w.e.f. 16-5-1953).

2. Ins. by Act 49 of 1981, sec. 11 (w.e.f. 1-6-1983).

3. The word “or” omitted by Act 49 of 1981, sec. 11 (w.e.f. 1-6-1983).

4. Subs. by Act 49 of 1981, sec. 11, for certain words (w.e.f. 1-6-1983).

5. Subs. by Act 56 of 1984, sec. 3, for certain words (w.e.f. 27-8-1984).

6. Subs. by Act 56 of 1984, sec. 3, for “Provided that” (w.e.f. 27-8-1984).

7. Subs. by Act 56 of 1984, sec. 3, for “Provided further” (w.e.f. 27-8-1984).

8. Ins. by Act 49 of 1981, sec. 11 (w.e.f. 1-6-1983).

Section 7-A. Power of seizure.

¹[7A. Power of seizure.—(1) Where a film in respect of which no certificate has been granted under this Act is exhibited, or a film certified as suitable for public exhibition restricted to adults is exhibited to any person who is not an adult or a film is exhibited in contravention of any of the other provisions contained in this Act or of any order made by the Central Government ²[,the Tribunal] or the Board in the exercise of any of the powers conferred on it, any police officer may, ³[***] enter any place in which he has reason to believe that the film has been or is being or is likely to be exhibited, search it and seize the film.

(2) All searches under this Act shall be carried out in accordance with the provisions of the ⁴[Code of Criminal Procedure, 1973 (2 of 1974)], relating to searches.

————————–

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Ins. by Act 49 of 1981, sec. 12 (w.e.f. 1-6-1983).

3. Certain word omitted by Act 49 of 1981, sec. 12 (w.e.f. 1-6-1983).

4. Subs. by Act 49 of 1981, sec. 12, for “Code of Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 1-6-1983).

Section 7-B. Delegation of powers by Board [(Note:- Original S. 7-B, renumbered as sub-section.

¹[7B. Delegation of powers by Board.—²[(1)] The Central Government may, by general or special order, direct that any power, authority or jurisdiction exercisable by the Board under this Act shall, ³[in relation to the certification of the films under this Part] and subject to such condition, if any, as may be specified in the order, be exercisable also by the Chairman or any other member of the Board, and anything done or action taken by the Chairman or other member specified in the order shall be deemed to be a thing done or action taken by the Board.]

⁴¹[(2) The Central Government may, by order and subject to such conditions and restrictions as may be prescribed, authorise the regional officer to issue provisional certificates.]

————————–

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Section 7 renumbered as sub-section (1) thereof by Act 49 of 1981, sec. 13 (w.e.f. 1-6-1983).

3. Subs. by Act 49 of 1981, sec. 13, for “in relation to such matters” (w.e.f. 1-6-1983).

4. Ins. by Act 49 of 1981, sec. 13 (w.e.f. 1-6-1983).

Section 7–C. Power to direct exhibition of films for examination.

¹ Power to direct exhibition of films for examination – For the purpose of exercising any of the powers conferred on it by this Act, the Central Government,² the Tribunal or the Board may require any film to be exhibited before it or before ³ any persons or authority (Note:- Subs. by Act 49 of 1981 specified by it in this behalf.

———————-

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Ins. by Act 49 of 1981, sec. 14 (w.e.f. 1-6-1983).

3. Subs. by Act 49 of 1981, sec. 14, for “any person” (w.e.f. 1-6-1983).

Section 7-D.Vacancies, etc., not to invalidate proceeding.

¹ Vacancies, etc., not to invalidate proceeding – No act or proceeding of ²[the Tribuna the Board or of any advisory panel shall be deemed to be invalid by reason only of a vacancy in, or any defect in the constitution of [the Tribuna (Note:- Ins. by ibid)] the Board or panel, as the case may be.

——————–

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Ins. by Act 49 of 1981, sec. 15 (w.e.f. 1-6-1983).

Section 7-E.Members of the Board and advisory panels, to be public servants.

¹ Members of the Board and advisory panels to be public servants – All members of ²the [the Tribunal, the Board and of any advisory panel shall, when acting or purporting to act in pursuance of any of the provisions of this Act, be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code (45 of 1860).

———————–

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Ins. by Act 49 of 1981, sec. 16 (w.e.f. 1-6-1983).

Section 7-F.Bar of legal proceedings.

¹7-F.Bar of legal proceedings.Bar of legal proceedings -

No suit or other legal proceeding shall lie against ²the Central Government, [the Tribunal, the Board, advisory panel or any officer or member of³the Central Government,the Tribunal, the Board or advisory panel, as the case may be, in respect of anything which is in good faith done or intended to be done under this Act.]

———————-

1. Ins. by Act 3 of 1959, sec. 5 (w.e.f. 12-3-1959).

2. Subs. by Act 49 of 1981, sec. 17, for “the Central Government, the Board” (w.e.f. 1-6-1983).

3. Subs. by Act 49 of 1981, sec. 17, for “the Central Government, the Board or” (w.e.f. 1-6-1983).

Section 8. Power to make rules.

(1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of carrying into effect the provisions of this Part.

¹(2) [(Note:- Subs. by Act 49 of 1981 (w.e.f. 1-6-1983) In particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for-

(a) The allowance or fees payable to the members of the Board.

(b) The terms an conditions of service of the members of the Board.

(c) The manner of making an application to the Board for a certificate and the manner in which a film has to be examined by the Board and the fees to be levied therefore.

(d) The association of regional officers in the examination of films, the conditions and restrictions subject to which regional officers may be authorised under Section 7-B to issue provisional certificates and the period of validity of such certificates.

(e) The manner in which the Board may consult any advisory panel in respect of any film.

(f) The allowance or fees payable to the members of advisory panel

(g) The marking of the films

(h) The allowances or fees payable to the members of the Tribunal

(i) The powers and duties of the Secretary to, and other employee of, the

Tribunal.

(j) The other terms and conditions of service of the Chairman and members of, and the Secretary to, and other employees of, the Tribunal

(k) The fees payable by the appellant to the Tribunal in respect of an appeal;

(l) The conditions (including conditions relating to the length of films in general or any class of films, in particular) subject to which any certificate may be granted, or the circumstances in which any certificate shall be refused.

(m) Any other matter which is required to be or may be prescribed.]

²(3) Every rule made by the Central Government under this Part shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session , for total period of thirty days which may be comprise in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 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.]

——————-

1. Subs. by Act 49 of 1981, sec. 18, for sub-section (2) (w.e.f. 1-6-1983).

2. Subs. by Act 25 of 1973, sec. 4, for sub-section (3) (w.e.f. 28-5-1973).

Section 9. Power to exempt.

The Central Government may, by order in writing exempt, subject to such conditions and restrictions, if any, as it may impose, the exhibition of any film or class of films from any of the provisions of this Part or of any rules made there under.

———————–

1. For such general exemption, see Gazette of India, 1952, Pt. II, Sec. 3, pp. 1578-1581.

Chapter III – REGULATION OF EXHIBITIONS BY MEANS OF CINEMATOGRAPHS

Section 10. Cinematograph exhibitions to be licensed.

Save as otherwise provided in this Part, no person shall give an exhibition by means of a cinematograph elsewhere that in a place licensed under this Part or otherwise than in compliance with any conditions and restrictions imposed by such liecnes.

Section 11. Licensing authority.

The authority having power to grant licences under this Part (hereinafter referred to as the licensing authority) shall be the district magistrate.

Provided that the State Government may, by notification in the Official Gazette, constitute, for the whole or any part of a ¹ Union territory], such other authority as it may specify in the notification to be the licensing authority for the purposes of this Part.

—————

1. Subs. by Act 58 of 1960, sec. 3 and Sch. II, for “Part C State” (w.e.f. 26-12-1960).

Section 12. Restrictions on powers of licensing authority.

(1) The licensing authority shall not grant a licence under this Part, unless it is satisfied that-

(a) The rules made under this Part have been substantially complied with, and

(b) Adequate precautions have been taken in the place, in respect of which the licence is to be given, to provide for the safety of persons attending exhibitions therein.

(2) Subject to the foregoing provisions of this section and to the control of the State Government, the licensing authority may grant licence under this Part to such persons s that authority thinks fit an on such terms and conditions and subject to such restrictions as it may determine.

(3) Any person aggrieved by the decision a licensing authority refusing to grant a licence under this Part may, within such time as may be prescribed, appeal to the State Government or to such officer as the State Government may speicfy in this behalf and the State Government or the officer, as the case may be, may make such order in the case as it or he thinks fit.

(4) The Central Government may, form time to time, issue directions to licensees generally or to any licensee in particular for the purpose of regulating the exhibition of any film or class of films, so that scientific films, films intended for educational purposes, films dealing with news and current events, documentary films or indigenous films secure and adequate opportunity of being exhibited, and where any such directions have been issued those directions shall be deemed to be additional conditions and restrictions subject to which the licence has been granted.

Notes

The exprssion “may” used in sub section (2) cannot be read as “shall” Tajdin Facerbhai v. Union Territory of Goa, AIR 1965 Goa 158.

If the licensing authority does not surrender its own judgement to the Government it is entitled in law to give weight to the opinion of the Government. Tajdin Facerbhai v. Union Territory of Goa, AIR 1965 Goa 158.

Where the appellant authority without passing any written order directed the Distrcit Magistrate to inform the petitioner that it was not possible to grant the licene as various directs were found under Cinematograph Rules, the order was fit to be set aside and a direction ws given to the Government to dispose of the appeal as per law. Tajdin Facerbhai v. Union Territory of Goa, AIR 1971 Goa 27.

The final order which the appellate passes in appeal is a quasi-judicial order. When it is a quasi-judicial order it must be a speaking order. Reasons must be given by the appellate authority for allowing or dismissing the appeal. Tajdin Facerbhai v. Union Territory of Goa, AIR 1971 Goa 27.

During the pendency of an application under sub section (3) of Section 12 a writ petition is maintainable. Tajdin Facerbhai v. Union Territory of Goa, AIR 1967 Goa158.

Section 13. Power of Central Government or local authority to suspend exhibition of films in certain cases.

(1) The Lieutenant- Governor or, as the case may be, the Chief Commissioner, in respect of the ¹ whole or any part of a Union territory], and the district magistrate in respect of the district within his jurisdiction, any, if he is of opinion that any film which is being publicly exhibited is likely to cause a breach of the peace, by order, suspend the exhibition of the film and during such suspension the film shall be deemed to be an uncertified film in the State, part or district, as the case may be.

(2) Where an order under sub section 91)has been issued by the Chief Commissioner or a district magistrate, as the case may be a copy thereof, together with a statement of reasons therefore, shall forthwith be forwarded by the person making the same to the Central Government, and the Central Government may either confirm or discharge the order.

(3) An order made under this section shall remain in tore for a period of two months from the date thereof, but the Central Government may, if it is of opinion that the order should continue in force, direct that the period of suspension shall be extended by such further period as it thinks fit.

———

1. Subs. by Act 58 of 1960, sec. 3 and Sch. II, for “whole Part C State or any part thereof” (w.e.f. 26-12-1960).

Section 14. Penalties for contravention of this Part.

If the owner of person in charge of a cinematograph uses the same or allows it to be used, or if he owner or occupier of any place permits that place to be used in contravention of the provision of this Part or of the rules made there under, or of the condition and restrictions upon or subject to which any licence has been granted under this Part, he shall be punishable with fine which may extend to one thousand d rupees and, in the case of a continuing offence, with a further fine which may extend to one hundred rupees for each day during which the offence continues.

Section 15. Power to revoke licence.

Where the holder of a licence has been convicted of an offence under Section 7 or Section 14, the licence may be revoked by the licensing authority.

Section 16. Power to make rules.

¹(1)] The Central Government may, by notification in the Official Gazette, make rules-

(a) Prescribing the terms, conditions and restrictions, if any, subject to which licences may be grated under this part.

(b) Providing for the regulation of cinematograph exhibitions for securing the public safety.

(c) Prescribing the time within which and the conditions subject to which an appeal under sub section (3) of Section 12 may be preferred.

²(2) Every rule made by the Central Government under this Part shall be laid, as soon s may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive session aforesaid, both Houses agree that the rule should be me made, the rule shall thereafter have effect only in such modified form or be of no effect, the case maybe, so, however, that any such modification or annulment shall be without prejudice the validity of anything previously done under that rule.

—————-

1. Section 11 renumbered as sub-section (1) thereof by Act 49 of 1981, sec. 19 (w.e.f. 1-6-1983).

2. Ins. by Act 49 of 1981, sec. 19 (w.e.f. 1-6-1983).

Section 17. Power to exempt.

The Central Government may by order in writing exempt,¹ subject to such conditions and restrictions as it may impose, any cinematograph exhibition or class or cinematograph exhibitions from any of the provisions of this part or of any rules made there under.

Notes

As the expression Central Government in relation to anything done before the constitution means the Governor-General or Governor-General in Council, it is obvious that the Notification of 1942 issued by the Chief Commissioner of Delhi under Section 9 of Cinematograph Act, 1918 must be deemed to have been issued by the Central Government. It cannot be said to be inconsistent with the Act of 1952.

———————

1. For such general exemptions, see Gazette of India, 1954, Pt. II, Sec. 3, p. 240, Gazette of India, 1955, Pt. II, Sec. 3, p. 310.

Chapter IV – REPEAL

Section 18. Repeal.

The cinematograph Act, 1918 (2 of 1918), is hereby repealed.

Provided that in relation to part A states and Part B states the repeal shall have effect only in so far as the said Act relates to the sanctioning of cinematograph films for exhibition.

Note

The wording of section 18 shows that the repeal of the Cinematograph Act, 1918 is confined to that portion of the old Act which is covered by Part II of the new Act. Section 6 is one of the repealed sections, but the issuing of the licences and the procedure provided therefore cannot be said to come within the wording of the repealing section. Bharat Bhushan v.p. C. Saxena, AIR 1955 All 82.

Customs Tariff Act

November 30, 2014

Section 1. Short title, extent and commencement.

1. This Act may be called the Customs Tariff Act, 1975.

2. It extends 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.

Section 2. Duties specified in the Schedules to be levied.

The rates at which duties of customs shall be levied under the Customs Act, 1962 (52 of 1962), are specified in the First and Second Schedules.

Section 3. Levy of additional duty equal to excise duty.

1. Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article.

*Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the official gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced are manufactured in different states, are, if a like alcoholic liquor is not produced or manufactured in any state, then, having regard to excise duty which would be leviable for the time being in different states on the class or description of alcoholic liquor to which such imported alcoholic liquor belongs.

Explanation.- In this section, the expression “the excise duty for the time being leviable on a like article if produced or manufactured in India” means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India, or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty.

2. For the purpose of calculating under this section, the additional duty on any imported article, where such duty is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in Section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of —

i. the value of the imported article determined under sub-section (1) of the said Section 14 or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and

ii. any duty of customs chargeable on that article under Section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include (with retrospective effect from 1st day of March 2002)-

a. the special additional duty referred to in section 3(A)

b. the safeguard duty referred to in section 8B and 8C;

c. the countervailing duty referred to in section 9.

d. anti-dumping duty referred to in section 9A and

e. the duty referred to in sub section (1).

(i) In relation to which it is required, under the provisions of the standards of Weights and Measures Act, 1976 or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and

(ii) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is the goods specified by notification in the Official Gazette under sub-section (1) of section 4A of the Central Excise Act, 1944.

Explanation:- Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section.

3. If the Central Government is satisfied that it is necessary in the public interest to levy on any imported article whether on such article duty is leviable under sub-section (1) or not such additional duty as would counter-balance the excise duty leviable on any raw materials, components and ingredients of the same nature as, or similar to those, used in the production or manufacture of such article, it may, by notification in the Official Gazette, direct that such imported article shall, in addition, be liable to an additional duty representing such portion of the excise duty leviable on such raw materials, components and ingredients as, in either case, may be determined by rules made by the Central Government in this behalf.

4. In making any rules for the purposes of sub-section (3), the Central Government shall have regard to the average quantum of the excise duty payable on the raw materials, components or ingredients used in the production or manufacture of such like article.

5. The duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

6. The provisions of the Customs Act, 1962 (52 of 1962), and the rules and regulations made thereunder, including those relating to drawbacks, refunds and exemption from duties, shall, so far as may be, apply to the duty chargeable under this section as they apply in relation to the duties leviable under that Act.

Section 3A. Special additional duty.

1. Any article which is imported into India shall in addition be liable to a duty (hereinafter referred to in this section as the special additional duty), which shall be levied at a rate to be specified by the Central Government, by notification in the Official Gazette, having regard to the maximum sales tax, local tax or any other charges for the time being leviable on a like article on its sale or purchase in India :

Provided that until such rate is specified by the Central Government, the special additional duty shall be levied and collected at the rate of eight per cent of the value of the article imported into India.

Explanation.- In this sub-section, the expression “maximum sales tax, local tax or any other charges for the time being leviable on a like article on its sale or purchase in India” means the maximum sales-tax, local tax, other charges for the time being in force, which shall be leviable on a like article, if sold or purchased in India, or if a like article is not so sold or purchased which shall be leviable on the class or description of articles to which the imported article belongs.

2. For the purpose of calculating under this section the special additional duty on any imported article, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962 (52 of 1962) or section 3 of this Act, be the aggregate of-

i. the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be;

ii. any duty of customs chargeable on that article under section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include (with retrospective effect from 1st day of March 2002) -

a. the safeguard duty referred to in section 8B and 8C;

b. the countervailing duty referred to in section 9.

c. anti-dumping duty referred to in section 9A;

d. special additional duty referred to in sub-section (1) and

iii. the additional duty of customs chargeable on that article under section 3 of this Act.

The duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

The provisions of the Customs Act, 1962 (52 of 1962), and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties shall, so far as may be, apply to the duty chargeable under this section as they apply in relation to the duties leviable under that Act.

Nothing contained in this section shall apply to any article, which is chargeable to additional duties levied under sub-section (1) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957).

Section 4. Levy of duty where standard rate and preferential rate are specified.

1. Where in respect of any article a preferential rate of revenue duty is specified in the First Schedule, or is admissible by virtue of a notification under Section 25 of the Customs Act, 1962 (52 of 1962), the duty to be levied and collected shall be at the standard rate, unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being the produce or manufacture of such preferential area as is notified under sub-section (3) and the article is determined, in accordance with the rules made under sub-section (2), to be such produce or manufacture.

2. The Central Government may, by notification in the Official Gazette, make rules for determining if any article is the produce or manufacture of any preferential area.

3. For the purposes of this section and the First Schedule, “preferential area” means any country or territory which the Central Government may, by notification in the Official Gazette, declare to be such area.

4. Notwithstanding anything contained in sub-section (1), where the Central Government is satisfied that, in the interests of trade including promotion of exports, it is necessary to take immediate action for discontinuing the preferential rate, or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Central Government may, by notification in the Official Gazette, direct an amendment of the said Schedule to be made so as to provide for such discontinuance of, or increase or decrease, as the case may be, in the preferential rate.

5. Every notification issued under sub-section (3) or sub-section (4) shall, as soon as may be after it is issued, be laid before each House of Parliament.

Also see Notification 101/82-Cus., dated 1-4-1982

Section 5. Levy of a lower rate of duty under a trade agreement.

1. Whereunder a trade agreement between the Government of India and the Government of a foreign country or territory, duty at a rate lower than that specified in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the Central Government may, by notification in the Official Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement.

2. If any question arises whether any trade agreement applies to any country or territory, or whether it has ceased to apply to India or any foreign country or territory, it shall be referred to the Central Government for decision and the decision of the Central Government shall be final and shall not be liable to be questioned in any court of law.

Section 6. Power of Central Government to levy protective duties in certain cases.

1. Where the Central Government, upon a recommendation made to it in this behalf by the Tariff Commission established under the Tariff Commission Act, 1951 (50 of 1951), is satisfied that circumstances exist which render it necessary to take immediate action to provide for the protection of the interests of any industry established in India, the Central Government may, by notification in the Official Gazette, impose on any goods imported into India in respect of which the said recommendation is made, a duty of customs of such amount, not exceeding the amount proposed in the said recommendation, as it thinks fit.

2. Every duty imposed on any goods under sub-section (1) shall, for the purposes of this Act, be deemed to have been specified in the First Schedule as the duty leviable in respect of such goods.

3. Where a notification has been issued under sub-section (1), the Central Government shall, unless the notification is in the meantime rescinded, have a Bill introduced in Parliament, as soon as may be, but in any case during the next session of Parliament following the date of the issue of the notification to give effect to the proposals in regard to the continuance of a protective duty of customs on the goods to which the notification relates, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder :

Provided that if the notification under sub-section (1) is issued when Parliament is in session, such a Bill shall be introduced in Parliament during that session :

Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of its introduction in Parliament, the notification shall cease to have effect on the expiration of the said period of six months, but without prejudice to the validity of anything previously done thereunder.

Section 7. Duration of protective duties and power of Central Government to alter them.

1. When the duty specified in respect of any article in the First Schedule is characterized as protective in Column (5) of that Schedule, that duty shall have effect only up to and inclusive of the date, if any, specified in that Schedule.

2. Where in respect of any such article the Central Government is satisfied after such inquiry as it thinks necessary that such duty has become ineffective or excessive for the purpose of securing the protection intended to be afforded by it to a similar article manufactured in India and that circumstances exist which render it necessary to take immediate action, it may, by notification in the Official Gazette, increase or reduce such duty to such extent as it thinks necessary.

3. Every notification under sub-section (2), insofar as it relates to increase of such duty, shall be laid before each House of Parliament if it is sitting as soon as may be after the issue of the notification, and if it is not sitting within seven days of its re-assembly, and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the People and if Parliament makes any modification in the notification or directs that the notification should cease to have effect, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, but without prejudice to the validity of anything previously done thereunder.

4. For the removal of doubts, it is hereby declared that any notification issued under sub-section (2), including any such notification approved or modified under sub-section (3), may be rescinded by the Central Government at any time by notification in the Official Gazette.

Section 8. Emergency power of Central Government to increase or levy export duties.

1. Where, in respect of any article, whether included in the Second Schedule or not, the Central Government is satisfied that the export duty leviable thereon should be increased or that an export duty should be levied, and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, direct an amendment of the Second Schedule to be made so as to provide for an increase in the export duty leviable or, as the case may be, for the levy of an export duty, on that article.

2. The provisions of sub-sections (3) and (4) of Section 7 shall apply to any notification issued under sub-section (1) as they apply in relation to any notification increasing duty issued under sub-section (2) of Section 7.

Section 8A. Emergency power of Central Government to increase im port duties.

1. Where in respect of any article included in the First Schedule, the Central Government is satisfied that the import duty leviable thereon under section 12 of the Customs Act, 1962 (52 of 1962) should be increased and that circumstances exist which render it necessary to take immediate action, it may, by notification in the Official Gazette, direct an amendment of that Schedule to be made so as to provide for an increase in the import duty leviable on such article to such extent as it thinks necessary:

Provided that the Central Government shall not issue any notification under this sub-section for substituting the rate of import duty in respect of any article as specified by an earlier notification issued under this sub-section by that Government before such earlier notification has been approved with or without modifications under sub-section (2).

2. The provisions of sub-sections (3) and (4) of section 7 shall apply to any notification issued under sub-section (1) as they apply in relation to any notification increasing duty issued under sub-section (2) of section 7.

Section 8B. Power of Central Government to impose safeguard duty.

1. If the Central Government, after conducting such enquiry as it deems fit, is satisfied that any article is imported into India in such increased quantities and under such conditions so as to cause or threatening to cause serious injury to domestic industry, then, it may, by notification in the Official Gazette, impose a safeguard duty on that article:

Provided that no such duty shall be imposed on an article originating from a developing country so long as the share of imports of that article from that country does not exceed three per cent or where the article is originating from more than one developing countries, then, so long as the aggregate of the imports from all such countries taken together does not exceed nine percent of the total imports of that article into India.

* Provided further that the Central Government may, by notification in the Official Gazette, exempt such quantity of any article as it may specify in the notification, when imported from any country or territory into India, from payment of the whole or part of the safeguard duty leviable thereon.

2. The Central Government may, pending the determination under sub-section (1), impose a provisional safeguard duty under this sub-section on the basis of a preliminary determination that increased imports have caused or threatened to cause serious injury to a domestic industry :

Provided that where, on final determination, the Central Government is of the opinion that increased imports have not caused or threatened to cause serious injury to a domestic industry, it shall refund the duty so collected :

Provided further that the provisional safeguard duty shall not remain in force for more than two hundred days from the date on which it was imposed.

* (2A) Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under sub-section (1) or any safeguard duty imposed under sub-section (2), unless specifically made applicable in such notification or such imposition, as the case may be, shall not apply to articles imported by a hundred per cent. export-oriented undertaking or a unit in a free trade zone or in a special economic zone.

Explanation:- For the purposes of this section, the expressions “hundred per cent. export-oriented undertaking”, “free trade zone” and “special economic zone” shall have the meanings assigned to them in Explanation 2 to sub-section (1) of section 3 of Central Excise Act, 1944.

3. The duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

4. The duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of four years from the date of such imposition :

Provided that if the Central Government is of the opinion that the domestic industry has taken measures to adjust to such injury or threat thereof and it is necessary that the safeguard duty should continue to be imposed, it may extend the period of such imposition :

Provided further that in no case the safeguard duty shall continue to be imposed beyond a period of ten years from the date on which such duty was first imposed.

5. The Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which articles liable for safeguard duty may be identified and for the manner in which the causes of serious injury or causes of threat of serious injury in relation to such articles may be determined and for the assessment and collection of such safeguard duty.

6. For the purposes of this section, -

a. “developing country” means a country notified by the Central Government in the Official Gazette for the purposes of this section;

b. “domestic industry” means the producers -

i. as a whole of the like article or a directly competitive article in India; or

ii. whose collective output of the like article or a directly competitive article in India constitutes a major share of the total production of the said article in India;

c. “serious injury” means an injury causing significant overall impairment in the position of a domestic industry;

d. “threat of serious injury” means a clear and imminent danger of serious injury.

7. Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.

Section 8C. Power of Central Government to impose transitional product specific safeguard duty on imports from the people’s Republic of China.

1. Notwithstanding anything contained in section 8B,

if the Central government after conducting such enquiry as it deems fit, is satisfied that any article is imported into India, from the people’s Republic of China, in such condition so as to cause or threatening to cause market disruption to domestic industry, then it may, by notification in the official Gazette, impose a safeguard duty on that article:

Provided that the central government may, by notification in the official Gazette, exempt such quantity of any article as it may specify in the notification, when imported from people’s republic of China into India, from payment of the whole or part of the safeguard duty leviable thereon.

2. The Central government may, pending the determination under sub-section (1), impose a provisional safeguard duty under this sub-section on the basis of a preliminary determination that increased imports have caused or threatened to cause market disruption to a domestic industry:

Provided that where, on final determination, the Central government is of the opinion that increased imports have not caused or threatened to cause market disruption to a domestic industry, it shall refund the duty so collected:

Provided further that the provisional safeguard duty shall not remain in force for more than two hundred days from the date on which it was imposed.

3. Notwithstanding anything contained in sub- (1) and (2), a notification issued under sub-section (1) or any safeguard duty imposed under sub-section (2) , unless specifically made applicable in such notification or such imposition, as the case may be, shall not apply to articles imported by a hundred percent. Export-oriented undertaking or a unit in a free trade zone or in a special economic zone.

Explanation:-For the purpose of this section , the expressions “hundred percent. Export-oriented undertaking”, “free trade zone” and “special economic zone” shall have the meanings respectively assigned to them in Explanation 2 to sub-section (1) of section 3 of the central Excise Act, 1944.

4. The duty chargeable under this section shall be in addition to any other duty imposed under this act or under any other law for the time being in force.

5. The duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of four years from the date of such imposition;

Provided that if the Central government is of the opinion that such article continues to be imported into India, from people’s Republic of china, in such increased quantities so as to cause or threatening to cause market disruption to domestic industry and the safeguard duty should continue to be imposed, it may extend the period of such imposition for a period not beyond the period of ten years from the date on which the safeguard duty was first imposed.

6. The central Government may, be notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which articles liable for safeguard duty may be identified and for the manner in which the cause of market disruption or cause of threat of markets disruption in relation to such articles may be determined and for the assessment and collection of such safeguard duty.

7. For the purpose of this section,-

” domestic industry” means the producers—

i. as a whole of a like article or a directly competitive article in India ; or

ii. Whose collective output of a like article or a directly competitive article in India constitutes a major share of the total production of the said article in India;

a. ” Market disruption” shall be caused whenever imports a like article or a directly competitive article produced by the domestic industry, increase rapidly, either absolutely or relatively, so as to be a significantly cause of material injury, or threat of material injury, to the domestic industry;

b. “Threat of market disruption” means a clear and imminent danger of market disruption.

8. Every notification issued under this section shall, as son as may be after it is issued, be laid before each house of Parliament;

Refund of additional duty of Customs in certain cases.

1. Notwithstanding anything contained in section 25 of the Customs Act, barge mounted power plants, falling under heading 98.01 of the First Schedule to the Customs Tariff Act, shall be deemed to have been exempted from the whole of the additional duty of Customs leviable thereon under sub-section (1) of section 3 of the customs Tariff Act, within the period commencing from the 8th December,2000 and ending with the 28th february,2002 (both the dates inclusive) and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, barge mounted power plants shall be deemed to be, and always to have been, exempted from the said additional duty of customs as if the exemption given by this sub-section had been in force at all material times.

2. For the purpose of sub-section (1), the central Government shall have and shall be deemed to have the power to exempt the goods referred to in the said sub-section with retrospective effect as the Central Government had the power to exempt the said goods under sub-section (1) of section 25 of the customs act, retrospectively at all material times.

3. Refund shall be made of all such additional duty of customs which have been collected but which would have not been so collected if the exemption referred to in sub-section (1 had been in force at all material times.

4. Notwithstanding anything contained in section 27 of the Customs Act, an application for the claim of refund of the additional duty of customs under sub-section (3) shall be made with in six months from the date on which the Finance Bill, 2002 receive the assent of the President.

Section 9. Countervailing duty on subsidized articles.

1. Where any country or territory pays, bestows, directly or indirectly, any subsidy upon the manufacture or production therein or the exportation therefrom of any article including any subsidy on transportation of such article, then, upon the importation of any such article into India, whether the same is imported directly from the country of manufacture, production or otherwise, and whether it is imported in the same condition as when exported from the country of manufacture or production or has been changed in condition by manufacture, production or otherwise, the Central Government may, by notification in the Official Gazette, impose a countervailing duty not exceeding the amount of such subsidy.

Explanation. - For the purposes of this section, a subsidy shall be deemed to exist if -

a. there is financial contribution by a Government, or any public body within the territory of the exporting or producing country, that is, where -

i. a Government practice involves a direct transfer of funds (including grants, loans and equity infusion), or potential direct transfer of funds or liabilities, or both;

ii. Government revenue that is otherwise due is foregone or not collected (including fiscal incentives);

iii. a Government provides goods or services other than general infrastructure or purchases goods;

iv. a Government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions specified in clauses (i) to (iii) above which would normally be vested in the Government and the practice in, no real sense, differs from practices normally followed by Governments; or

b. a Government grants or maintains any form of income or price support, which operates directly or indirectly to increase export of any article from, or to reduce import of any article into, its territory, and a benefit is thereby conferred.

2. The Central Government may, pending the determination in accordance with the provisions of this section and the rules made thereunder of the amount of subsidy, impose a countervailing duty under this sub-section not exceeding the amount of such subsidy as provisionally estimated by it and if such countervailing duty exceeds the subsidy as so determined, -

a. the Central Government shall, having regard to such determination and as soon as may be after such determination, reduce such countervailing duty; and

b. refund shall be made of so much of such countervailing duty which has been collected as is in excess of the countervailing duty as so reduced.

3. Subject to any rules made by the Central Government, by notification in the Official Gazette, the countervailing duty under sub-section (1) or sub-section (2) shall not be levied unless it is determined that -

a. the subsidy relates to export performance;

b. the subsidy relates to the use of domestic goods over imported goods in the export article; or

c. the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article unless such a subsidy is for-

i. research activities conducted by or on behalf of persons engaged in the manufacture, production or export;

ii. assistance to disadvantaged regions within the territory of the exporting country; or

iii. assistance to promote adaptation of existing facilities to new environmental requirements.

4. If the Central Government, is of the opinion that the injury to the domestic industry which is difficult to repair, is caused by massive imports in a relatively short period, of the article benefiting from subsidies paid or bestowed and where in order to preclude the recurrence of such injury, it is necessary to levy countervailing duty retrospectively, the Central Government may, by notification in the Official Gazette, levy countervailing duty from a date prior to the date of imposition of countervailing duty under sub-section (2) but not beyond ninety days from the date of notification under that sub-section and notwithstanding anything contained in any law for the time being in force, such duty shall be payable from the date as specified in the notification issued under this sub-section.

5. The countervailing duty chargeable under this section shall be in addition to any other duty imposed under this Act or any other law for the time being in force.

6. The countervailing duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of five years from the date of such imposition:

Provided that if the Central Government, in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of subsidization and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension:

Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the countervailing duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.

7. The amount of any such subsidy as referred to in sub-section (1) or sub-section (2) shall, from time to time, be ascertained and determined by the Central Government, after such inquiry as it may consider necessary and the Central Government may, by notification in the Official Gazette, make rules for the identification of such article and for the assessment and collection of any countervailing duty imposed upon the importation thereof under this section.

8. Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.

Section 9A. Anti-dumping duty on dumped articles.

1. Where any article is exported from any country or territory (hereinafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.

Explanation. - For the purposes of this section, -

a. “margin of dumping”, in relation to an article, means the difference between its export price and its normal value;

b. “export price”, in relation to an article, means the price of the article exported from the exporting country or territory and in cases where there is no export price or where the export price is unreliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported articles are first resold to an independent buyer or if the article is not resold to an independent buyer, or not resold in the condition as imported, on such reasonable basis as may be determined in accordance with the rules made under sub-section (6);

c. “normal value”, in relation to an article, means-

i. the comparable price, in the ordinary course of trade, for the like article when meant for consumption in the exporting country or territory as determined in accordance with the rules made under sub-section (6); or

ii. when there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, when because of the particular market situation or low volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either -

a. comparable representative price of the like article when exported from the exporting country or territory or an appropriate third country as determined in accordance with the rules made under sub-section (6); or

b. the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and gen eral costs, and for profits, as determined in accordance with the rules made under sub-section (6):

Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transhipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.

2. The Central Government may, pending the determination in accordance with the provisions of this section and the rules made thereunder of the normal value and the margin of dumping in relation to any article, impose on the importation of such article into India an anti-dumping duty on the basis of a provisional estimate of such value and margin and if such anti-dumping duty exceeds the margin as so determined : -

a. the Central Government shall, having regard to such determination and as soon as may be after such determination, reduce such anti-dumping duty; and

b. refund shall be made of so much of the anti-dumping duty which has been collected as is in excess of the anti-dumping duty as so reduced.

* (2A) Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under sub-section (1) or any anti-dumping duty imposed under sub-section (2), unless specifically made applicable in such notification or such imposition, as the case may be, shall not apply to articles imported by a hundred per cent. export-oriented undertaking or a unit in a free trade zone or in a special economic zone.

article under inquiry, is of the opinion that -

i. there is a history of dumping which caused injury or that the importer was, or should have been, aware that the exporter practices dumping and that such dumping would cause injury; and

ii. the injury is caused by massive dumping of an article imported in a relatively short time which in the light of the timing and the volume of imported article dumped and other circumstances is likely to seriously under-mine the remedial effect of the anti-dumping duty liable to be levied,

the Central Government may, by notification in the Official Gazette, levy anti-dumping duty retrospectively from a date prior to the date of imposition of anti-dumping duty under sub-section (2) but not beyond ninety days from the date of notification under that sub-section, and notwithstanding anything contained in any law for the time being in force, such duty shall be payable at such rate and from such date as may be specified in the notification.

4. The anti-dumping duty chargeable under this section shall be in addition to any other duty imposed under this Act or any other law for the time being in force.

5. The anti-dumping duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of five years from the date of such imposition:

Provided that if the Central Government, in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension :

Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the anti-dumping duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.

6. The margin of dumping as referred to in sub-section (1) or sub-section (2) shall, from time to time, be ascertained and determined by the Central Government, after such inquiry as it may consider necessary and the Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which articles liable for any anti-dumping duty under this section may be identified, and for the manner in which the export price and the normal value of, and the margin of dumping in relation to, such articles may be determined and for the assessment and collection of such anti-dumping duty.

7. Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.

8. The provisions of the Customs Act, 1962 (52 of 1962) and the rules and regulations made thereunder, relating to non-levy, short levy, refunds and appeals shall, as far as may be, apply to the duty chargeable under this section as they apply in relation to duties leviable under that Act.

Section 9AA. Refund of anti-dumping duty in certain cases.

1. Where an importer proves to the satisfaction of the Central Government that he has paid any anti-dumping duty imposed under sub-section (1) of section 9A on any article, in excess of the actual margin of dumping in relation to such article, he shall be entitled to refund of such excess duty :

Provided that such importer shall not be entitled to refund of so much of such excess duty under this sub-section which is refundable under sub-section (2) of section 9A.

Explanation - For the purposes of this sub-section, the expressions, “margin of dumping”, “export price” and “normal value” shall have the meanings respectively assigned to them in the Explanation to sub-section (1) of section 9A.

2. The Central Government may, by notification in the Official Gazette, make rules to -

i. provide for the manner in which and the time within which the importer may make application for the purposes of sub-section (1;

ii. authorise the officer of the Central Government who shall dispose of such application on behalf of the Central Government within the time specified in such rules; and

iii. provide the manner in which the excess duty referred to in sub-section (1) shall be -

(A) determined by the officer referred to in clause (ii); and

(B) refunded by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, after such determination.

Section 9B. No levy under section 9 or section 9A in certain cases.

1. Notwithstanding anything contained in section 9 or section 9A,-

a. no article shall be subjected to both countervailing duty and anti-dumping duty to compensate for the same situation of dumping or export subsidization;

b. the Central Government shall not levy any countervailing duty or anti-dumping duty -

i. under section 9 or section 9A by reasons of exemption of such articles from duties or taxes borne by the like article when meant for consumption in the country of origin or exportation or by reasons of refund of such duties or taxes;

ii. under sub-section (1) of each of these sections, on the import into India of any article from a member country of the World Trade Organisation or from a country with whom Government of India has a most favoured nation agreement (hereinafter referred as a specified country), unless in accordance with the rules made under sub-section (2) of this section, a determination has been made that import of such article into India causes or threatens material injury to any established industry in India or materially retards the establishment of any industry in India; and

iii. under sub-section (2) of each of these sections, on import into India of any article from the specified countries unless in accordance with the rules made under sub-section (2) of this section, a preliminary findings has been made of subsidy or dumping and consequent injury to domestic industry; and a further determination has also been made that a duty is necessary to prevent injury being caused during the investigation:

Provided that nothing contained in sub-clauses (ii) and (iii) of clause (b) shall apply if a countervailing duty or an anti-dumping duty has been imposed on any article to prevent injury or threat of an injury to the domestic industry of a third country exporting the like articles to India;

c. the Central Government may not levy -

i. any countervailing duty under section 9, at any time, upon receipt of satisfactory voluntary undertakings from the Government of the exporting country or territory agreeing to eliminate or limit the subsidy or take other measures concerning its effect, or the exporter agreeing to revise the price of the article and if the Central Government is satisfied that the injurious effect of the subsidy is eliminated thereby;

ii. any anti-dumping duty under section 9A, at any time, upon receipt of satisfactory voluntary undertaking from any exporter to revise its prices or to cease exports to the area in question at dumped price and if the Central Government is satisfied that the injurious effect of dumping is eliminated by such action.

2. The Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which any investigation may be made for the purposes of this section, the factors to which regard shall be at in any such investigation and for all matters connected with such investigation.

Section 9C. Appeal.

1. An appeal against the order of determination or review thereof regarding the existence, degree and effect of any subsidy or dumping in relation to import of any article shall lie to the Customs, Excise and Service tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962) (hereinafter referred to as the Appellate Tribunal).

2. Every appeal under this section shall be filed within ninety days of the date of order under appeal:

Provided that the Appellate Tribunal may entertain any appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

3. The Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against.

4. The provisions of sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act, 1962 (52 of 1962) shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Customs Act, 1962 (52 of 1962).

5. Every appeal under sub-section (1) shall be heard by a Special Bench constituted by the President of the Appellate Tribunal for hearing such appeals and such Bench shall consist of the President and not less than two members and shall include one judicial member and one technical member.

Section 10. Rules to be laid before Parliament.

Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid, 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.

Section 11. Power of Central Government to alter duties under certain circumstances.

1. Where the Central Government is satisfied that it is necessary so to do for the purpose of giving effect to any agreement entered into before the commencement of this Act with a foreign Government, it may, by notification in the Official Gazette, increase or reduce the duties referred to in section 2 to such extent as each case may require :

Provided that no notification under this sub-section increasing or reducing the duties as aforesaid shall be issued by the Central Government after the expiration of a period of one year from the commencement of this Act.

2. Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each House of Parliament.

Section 12. Repeal and saving.

1. The Indian Tariff Act, 1934 (32 of 1934), and the Indian Tariff (Amendment) Act, 1949 (1 of 1949), are hereby repealed.

2. Notwithstanding the repeal of any of the Acts mentioned in sub-section (1), anything done or any action taken (including any notification published and any rules and orders made or deemed to have been made under the provisions of those Acts and in force immediately before the commencement of this Act) shall, insofar as such thing or action is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the provisions of this Act and shall continue in force accordingly until superseded by anything done or any action taken under this Act.

Section 13. Consequential amendment of Act 52 of 1962.

In the Customs Act, 1962, in sub-section (1) of Section 12 and in sub-section (1) of Section 14, for the words and figures “Indian Tariff Act, 1934″, the words and figures “Customs Tariff Act, 1975″ shall be substituted.

Limitation Act

November 30, 2014

Section 1. Short title, extent, and commencement

1. This Act may be called the Limitation Act,1963.

2. It extends to the whole of India except the State of Jammu and Kashmir.

3. It shall come into force on such date as the Central Government may be notification in the Official Gazette, appoint.

Section 2. Definitions:

In this Act, unless the context otherwise requires.

(a) “applicant” includes

(i) petitioner;

(ii) any person from or through whom an applicant derives his right to apply;

(iii) any person whose estate is represented by the applicant as executor, administrator or other representative;

(b) “application” includes a petitions;

(d) “bond” includes any instrument whereby a person obliges himself to pay money to another on condition that the obligation shall be void if a specified act is performed, or is not performed as the case may be;

(e) “defendant” includes

(i) any person from or through whom a defendant derives his liability to be sued;

(ii) any person whose estate is represented by the defendant as executor, administrator or other representative;

(f) “easement” includes a right not arising from contract, by which one person is entitled to remove and appropriate for his own profit any part of the soil belonging to another or anything growing in, or attached to, or subsisting upon the land of another;

(g) “foreign country’” means any country other than India;

(h) “good faith” nothing shall be deemed to be done in good faith which is not done with due care and attention;

(i) “plaintiff” includes

(i) any person from or through whom a plaintiff derives his right to sue; (ii) any person whose estate is represented by the plaintiff as executor, administrator or other representative;

(j) “period of limitation” means the period of limitation prescribed for any suit, appeal or application by the Schedule, and “prescribed period” means the period of limitation computed in accordance with the provisions of this Act;

(k) “promissory-note” means any instrument whereby the maker engages absolutely to pay a specified sum of money to another at time therein limited, or on demand, or at sight;

(l) “suit” does not include an appeal or an application;

(m) “tort” means a civil wrong which is not exclusively the breach of a contract or the breach of trust;

(n) “trustee” does not include a benamidar, a mortgage remaining in possession after the mortgage has been satisfied, or a person in a wrongful possession without title.

Part 3 – Limitation of Suits, Appeals and Applications

Section 3. Bar of limitation

(1) Subject to the provisions contained in sections 4 to 24 (inclusive) every suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed although limitation has not been set up as defense;

(1) For the purposes of this Act,

(a) A suit is instituted,

(i) in an ordinary case, when the plaint is presented to the proper officer;

(ii) in the case of a pauper, when his application for leave to sue is a pauper is made; and

(ii) in the case of a claim against a company which is being wound up by the court, when the claimant first sends in his claim to the official liquidator;

(b) any claim by way of a set-off or a counter claim, shall be treated as a separate suit and shall be deemed to have been instituted-

(i) in the case of a set-off, on the dame date as the suit in which the set off is pleaded;

(ii) in the case a counter claim, on the date on which the counter claim is made in court;

(c) an application by notice of motion in a High Court is made when the application is presented to the proper officer of that court

Section 4. Expiry of prescribed period when court is closed

When the prescribed period for any suit, appeal or application expires on a day when the court is closed, the suit, appeal or application may be instituted, preferred or made on the day when the court reopens.

Explanation – A court shall be deemed to be closed on any day within the meaning of this section if during any part of its normal working hours it remains closed on that day.

Section 5.Extension of prescribed period in certain cases

Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908) may be admitted after the prescribed period, if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period.

Explanation – The fact that the appellant or the applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period may be sufficient cause within the meaning of this section

Section 6.Legal disability

Where a person entitled to institute a suit or make an application for the execution of a decree is, at the time from which the prescribed period is to be reckoned, a minor or insane, or an idiot, he may institute the suit or make the application within the same period after the disability has ceases, as would otherwise have been allowed from the time specified therefore in the third column of the Schedule.

(2) Where such person is, at the time from which the prescribed period it to be reckoned, affected by two such disabilities, or where, before his disability has ceased, he is affected by another disability, he may institute the suit or make the application within the same period after both disabilities have ceased, as would otherwise have been allowed from the time so specified.

(3) Where the disability continues up-to the death of that person, his legal representative may institute the suit or make the application within the same period after the death, as would otherwise have been allowed from the time so specified.

(4) Where the legal representative referred to in sub-section (3) is, at the date of the death of the person whom he represents. affected by any such disability, the rules contained in sub-sections (1) and (2) shall apply.

(5) Where a person under disability dies after the disability ceases but within the period allowed to him under this section, his legal representative may institute the suit or make the application within the same period after the death, as would otherwise have been available to that person had he not died.

Explanation – For the purposes of this section ‘minor’ includes a child in the womb.

Notes – This section corresponds with section 6 of the old Act with some changes.

Section 7. Disability of one of several persons

Where one of several persons jointly entitled to institute a suit or make an application for the execution of a decree is under any such disability, and a discharge can be given without the concurrence of such person, time will run against them all; but, where no such discharge can be given, time will not run as against any of them until one of them becomes capable of giving such discharge without the concurrence of the others or until the disability has cased.

Explanation I – This section applies to a discharge from every kind of liability, including a liability in respect of any immovable property.

Explanation II – For the purposes of this section, the manager of a Hindu undivided family governed by the Mitakshara law shall be deemed to be capable of giving a discharge without the concurrence of the other members of the family only if he is in management of the joint-family property.

Section 8. Special exceptions

Nothing in section 6 or in section 7 applies to suits to enforce rights of pre-emotion, or shall be deemed to extend, for more than three years from the cessation of the disability or the death of the person affected thereby the period of limitation for any suit or application.

Section 9. Continuous running of time

Where once time has begun to run, no subsequent disability or inability to institute a suit or make an application stops it:

Provided that where letters of administration to the estate of a creditor have been granted to his debtor, the running of the period of limitation for a suit to recover the debt shall be suspended while the administration continues.

Section 10. Suits against trustees and their representatives

Notwithstanding anything contained in the foregoing provisions of this Act, no suit against a person in whom property has become vested if trust for any specific purpose, or against his legal representatives or assigns (not being assigns for valuable consideration), for the purpose of following in his or their hands such property, or the proceeds thereof or for an account of such property or proceeds, shall be barred by any length of time.

Explanation – For the purposes of this section any property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment shall be deemed to be property vested in trust for a specific purpose and the manager of the property shall be deemed to be the trusted thereof.

Section 11. Suits on contracts entered into outside the territories to which the Act extends

(1) Suits instituted in the territories to which this Act extends on contracts entered into the State of Jammu and Kashmir or in a foreign country shall be rules of limitation contained in this Act.

(2) No rule of limitation in force in the State of Jammu and Kashmir or in a foreign country shall be a defense to a suit instituted in the said territories on a contract entered into in that State or in a foreign country unless –

(a) the rule has extinguished the contract; and

(b) the parties were domiciled in that State or in the foreign country during the period prescribed by such rule.

Part 3 – Computation of Period of Limitation

Section 12. Exclusion of time in legal proceedings

(1) In computing the period of limitation for any suit, appeal or application, the day from which such period is to be reckoned shall be excluded.

(2) In computing the period of limitation for an appeal or an application for leave to appeal or for revision or for review of a judgment, the day on which the judgment complained of was pronounced and the time requisite for obtaining a copy of the decree, sentence or order appealed from or sought to be revised or reviewed shall be excluded.

(3) Where a decree or order is appealed from or sought to be revised or reviewed, or when an application is made for leave to appeal from a decree or order the time requisite for obtaining a copy of the judgment on which the decree or order is founded shall also be excluded.

(4) In computing the period of limitation for an application to set aside an award, the time requisite for obtaining a copy of the award shall be excluded.

Explanation – In computing under this section the time requisite for obtaining a copy of a decree or an order, any time taken by the court to prepare the decree or order before an application for copy thereof is made shall not be excluded.

Section 13. Exclusion of time in cases where leave to sue or appeal as a pauper is applied for

In computing the period of limitation prescribed for any suit or appeal in any case where an application for leave to sue or appeal as a pauper has been made and rejected, the time during which the applicant has been prosecuting in good faith his application for such leave shall be excluded, and the court may, on payment of the court-fees prescribed for such suit or appeal, treat the suit or appeal as having the same force and effect as if the court-fees had been paid in the first instance.

Section 14. Exclusion of time of proceeding bona fide in court without jurisdiction

(1) In computing the period of limitation for any suit the time during which the plaintiff has been prosecuting with due diligence another civil proceeding, whether in a court of first instance or of the appeal or revision, against the defendant shall be excluded, where the proceeding relates to the same matter in issue and is prosecuted in good faith in a court which, from defect of jurisdiction or other cause of a like nature, is unable to entertain it.

(2) In computing the period of limitation for any application, the time during which the applicant has been prosecuting with due diligence another civil proceeding, whether in a court of first instance or of appeal or revision, against the same party for the same relief shall be excluded, where such proceeding is prosecuted in good faith in a count of first instance or of appeal or revision, against the same party for the same relief shall be excluded, where such proceeding is prosecuted in good faith in a court which, from defect of jurisdiction or other cause of a like nature, is unable to entertain it.

(3) Notwithstanding anything contained in rule 2 of Order XXIII of the Code of Civil Procedure, 1908 (5 of 1908), the provisions of sub-section (1) shall apply in relation to a fresh suit instituted on permission granted by the court under rule of that Order, where such permission is granted on the ground that the first suit must fail by reason of a defect in the jurisdiction of the court of other cause of a like nature.

Explanation – For the purpose of this section, –

(a) In excluding the time during which a former civil proceeding was pending, the day on which that proceeding was instituted and the day on which it ended shall both be counted;

(b) Plaintiff or an applicant resisting an appeal shall be deemed to be prosecuting a proceeding;

(c) Misjoinder of parties or of causes of action shall be deemed to be a cause of a like nature with defect of jurisdiction.

Related Judgements

FERRO ALLOYS CORPORATION LTD. v. RAJHANS STEEL LTD.

Section 15. Exclusion of time in certain other cases

(1) In computing the period of limitation for any suit or application for the execution of a decree, the institution or execution of which has been stayed by injunction or order, the time of continuance of the injunction or order, the day on which it was issued or made, and the day on which it was withdrawn, shall be excluded.

(2) In computing the period of limitation for any suit of which notice has been given, or for which the previous consent or sanction of the Government or any other authority is required, in accordance with the requirements of any law for the time being in force, the period of such notice or, as the case may be, the time required for obtaining such

consent or sanction shall be excluded.

Explanation – In excluding the time required for obtaining the consent or sanction of the Government or any other authority, the date on which the application was made obtaining the consent or sanction and the date of receipt of the order of the Government or other authority shall both be counted.

(3) In computing the period of limitation for any suit or application for execution of decree by any receiver of interim receiver appointed in proceedings for the adjudication of a person as an insolvent or by any liquidator or provisional lipuidator appointment in proceedings for the winding up of a company, the period beginning with the date of institution of such proceeding and ending with the expiry of three months from the date of appointment of such receiver or liquidator, as the case may be, shall be excluded.

(4) In computing the period of limitation for a suit for possession by a purchaser at a sale in execution of a decree, the time during which a proceeding to set aside the sale has been prosecuted shall be excluded.

(5) In computing the period of limitation for any suit the time during which the defendant has been absent from India and from the territories outside India under the administration of the Central Government, shall be excluded.

Related Judgements

FERRO ALLOYS CORPORATION LTD. v. RAJHANS STEEL LTD.

Section 16. Effect of death on or before the accrual of the right to sue

(1) Where a person who would, if he were living, have a right to institute a suit or make an application dies before the right accrues, or where a right to institute a suit or make an application accrues only on the death of a person, the period of limitation shall be computed from the time when there is a legal representative of the deceased capable of instituting such suit or making such application.

(2) Where a person against whom, if he were living, a right to institute a suit or make an application would have accrued dies before the right accrues, or where a right to institute a suit or make an application against any person accrues on the death of such person, the period of limitation shall be computed from the time when there is a legal representative of the deceased against whom the plaintiff may institute such suit or make such application.

(3) Nothing in sub-section (1) or sub-section (2) applies to suits to enforce rights of preemption or to suit for the possession of immovable property or of a hereditary office.

Section 17. Effect of fraud or mistake

(1) Where, in the case of any suit or application for which a period of limitation is prescribed by this Act-

(a) The suit or application is based upon the fraud of the defendant or respondent or his agent; or

(b) The knowledge of the right or title on which a suit or application is founded is concealed by the fraud of any such person as aforesaid; or

(d) Where any document necessary to establish the right of the plaintiff or applicant has been fraudulently concealed from him;

The period of limitation shall not begin to run until the plaintiff or applicant has discovered the fraud or the mistake or could, with reasonable diligence, has discovered it, or in the case of concealed document, until the plaintiff or the applicant first had the means of producing the concealed document or compelling its production:

Provided that nothing in this section shall enable any suit to be instituted or application to be made to recover or enforce any charge against or set aside any transaction affecting, any property which-

(i) In the case of fraud, has been purchased for valuable consideration by a person who was not a party to the fraud and did not at the time of the purchase know, or have reason to believe, that any fraud had been committed, or

(ii) In the case of mistake, has been purchased for valuable consideration subsequently to the transaction in which the mistake was made, by a person who did not know, or have reason to believe, that the mistake had

been made, or

(iii) In the case of a concealed document, has been purchased for valuable consideration by a person who was not a party to the concealment and, did not at the time of purchase know, or have reason to believe, that the document had been concealed.

(2) Where a judgment-debtor has, by fraud or force, prevented the execution of a decree or order within the period of limitation, the court may, on the application of the judgment-creditor made after the expiry of the said period extend the period for execution of the decree or order:

Provided that such application is made within one year from the date of the discovery of the fraud or the cessation of force, as the case may be.

Section 18. Effect of acknowledgment in writing

(1) Where before the expiration of the prescribed period for a suit or application in respect or any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he derived his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.

(2) Where the writing containing thee acknowledgement is undated, oral evidence may be given of the time when it was signed; but subject to the provisions of the Indian Evidence Act,1872 ( 1 of 1872), oral evidence of its contents shall not be received.

Explanation – For the purposes of this section, –

(a) An acknowledgment may be sufficient though it omits to specify the exact nature of the property or right, or avers that the time for payment, delivery, performance or enjoyment has not yet come or is accompanied by refusal to pay, deliver, perform or permit to enjoy, or is coupled with a claim to set-off, or is addressed to a person other than a person entitled to the property or night;

(b) The word “signed” means signed either personally or by an agent duly Authorised in this behalf ; and

(c) An application for the execution of a decree or order shall not be deemed to be an application in respect of any property or right.

NOTES – It is not necessary that an acknowledgment within Section 18 must contain a promise pay or should amount to a promise to pay. (Subbarsadya v.Narashimha, AIR 1936 Mad.939)

The above section corresponds to S.19 of the old Act and makes slight changes.

Section 19. Effect of payment on account of debt or of interest on legacy

Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly Authorised in this behalf, a fresh period of limitation shall be computed from the time when payment was made:

Provided that, save in the case of payment of interest made before the 1st day of January,1928, an acknowledgment of the payment appears in the hand-writing of, or in a writing signed by the person making the payment.

Explanation – For the purposes of this section, –

(a) Where mortgaged land is in the possession of the mortgage, the receipt of the rent of produce of such land be deemed to be a payment;

(b) “Debt” does not include money payable under a decree or order of a court.

Related Judgements

FERRO ALLOYS CORPORATION LTD. v. RAJHANS STEEL LTD.

Section 20. Effect of acknowledgment or payment by another person

(1) The expression “agent duly Authorised in this behalf” in sections 18 and 19 shall in the case of a person under disability, include his lawful guardian, committee or manager or an agent duly Authorised by such guardian, committee or manager to sign the acknowledgment or make the payment. (2) Nothing in the said sections renders one of several joint contractors, partners, executors or mortgages chargeable by reason only of a written acknowledgment signed by, or of a payment made by, or by the agent of, any other or others of them.

(3) For the purposes of the said sections, –

(a) an acknowledgment signed or a payment made in respect of any liability by, or by the duly Authorised agent of, any limited owner of property who is governed by Hindu Law, shall be a valid acknowledgment or payment, as the case may be, against a reversionary succeeding to such liability; and

where a liability has been incurred by, or on behalf of a Hindu undivided family as such, an acknowledgment or payment made by, or by the duly Authorised agent or, the manager of the family for the time being shall be deemed to have been made on behalf of the whole family.

Section 21. Effect of substituting or adding new plaintiff or defendant

(1) Where after the institution of a suit, a new plaintiff or defendant is substituted or added, the suit shall, as regards him, be deemed to have been instituted when he was made a party:

Provided that were the court is satisfied that the omission to include a new plaintiff or defendant was due to a mistake in good faith it may direct that the suit as regards such plaintiff or defendant shall be deemed to have been instituted on any earlier date.

(2) Nothing in sub-section (1) shall apply to a case where a party is added or substituted owing to assignment or devolution of any interest during the tendency of a suit or where a plaintiff is made a defendant or a defendant is made a plaintiff.

Section 22. Continuing breaches and torts

In the case of a continuing breach of contract or in the case of a continuing tort, a fresh period of limitation beings to run at every moment of the time during the breach or the tort, as the case may be, continues.

Section 23. Suits for compensation for acts not actionable without special damage

In the case of suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results there from, the period of limitation shall be computed from the time when the injury results.

Section 24. Computation of time mentioned in instrument

All instruments shall for purposes of this Act, be deemed to be made with reference to the Gregorian calendar.

Part 4 – Acquisition of ownership by possession

Section 25. Acquisition of easement by prescription

(1) Where the access and use of light or air to and for any building have been peaceable enjoyed there with as an easement, and as of right, without interruption and for twenty years, and where any way or watercourse or the use of any water or any other easement (whether affirmative or negative) has been peaceably and openly enjoyed by any person claiming title thereto as an easement and as of right without interruption and for twenty years, the right to such access and use of light or air, way, watercourse, use of other easement shall be absolute and indefeasible.

(2) Each of the said periods of twenty years shall be taken to be a period ending within two years next before the institution of the suit wherein claim to which such period relates is contested.

(3) Where property over which a right is claimed under sub-section (1) belongs to the Government that sub-section shall be read as if for the words “twenty years” the words “thirty years” were substituted.

Explanation – Nothing is an interruption within the meaning of the section, unless where there is an actual discontinuance of the possession or enjoyment by reason of an obstruction by the act of some person other than the claimant and unless such obstruction is submitted to or acquiesced in for one year after the claimant has notice thereof and of the person making or authorizing the same to be made.

Section 26. Exclusion in favour of reversionary of servant tenement

Where any land or water upon, over or from, which any easement has been enjoyed or derived has been held under or by virtue of any interest for life or in terms of years exceeding three years from the granting thereof the time of the enjoyment of such easement during the continuance of such interest or term shall be excluded in the computation of the period of twenty years in case the claim is, within three years next after the determination of such interest or term, resisted by the person entitled on such determination to the said land or water.

Section 27. Extinguishments of right to property

At the determination of the period hereby limited to any person for instituting a suit for possession of any property, his right to such property shall be extinguished.

Part 5 – Miscellaneous

Section 28. Amendment of Certain Acts. (Repealed)

Section 29. Savings

(1) Nothing in this Act, shall affect section 25 of the Indian Contract Act,1872.

(2) Where any special or local law prescribes for any suit, appeal or application a period of limitation different from the period prescribed by the Schedule, the provisions of section 3 shall apply as if such period were the period prescribed by the Schedule and for the purpose of determining any period of limitation prescribed for any sit, appeal or application by any special or local law, the provisions contained in section 5 to 24 (inclusive shall apply only in so far, as and to the extent to which, they are not expressly excluded by such special or local law.

(3) Save as otherwise provided in any law for the time being in force with respect to marriage and divorce, nothing in this Act shall apply to any suit or other proceeding under any such law.

(4) Sections 25 and 26 and the definition of “easement” in section 2 shall not apply to cases arising in the territories to which the Indian Easements Act,1882 may for the time being extend.

Section 30. Provision for suits, etc., for which the prescribed period is shorter than the period prescribed by the Indian Limitation Act,1908

Notwithstanding anything contained in this Act, (a) any suit for which the period of limitation is shorter than the period of limitation prescribed by the Indian Limitation Act,1908, may be instituted within a period of (Note: Substituted for the words “five years” by Act No.10 of 1969) (Seven years) next after the commencement of this Act or within the period prescribed for such suit by the Indian Limitation Act,1908, whichever period expires earlier;

(Note: Substituted for the Words “five years” by Act No.10 of 1969)

[Provided that if in respect of any such suit, the said period of seven years expires earlier than the period of limitation prescribed therefore under the Indian Limitation Act,1908 and the said period of seven years together with so much of the period of limitation in repeat of such suit under the Indian Limitation Act,1908, as has already expired before the commencement of this Act is shorter than the period prescribed for such suit under this Act, then, the suit may be instituted within the period of limitation prescribed therefore under this Act].

(b) any appeal or application for which the period of limitation is shorter than the period of limitation prescribed by the Indian Limitation Act, 1908 may be preferred or made within a period of ninety days next after the commencement of this Act or within the period prescribed for such appeal or application by the Indian Limitation Act,1908, whichever period expires earlier.

Section 31. Provision as to barred or pending suits, etc.

Nothing in this Act shall,

(a) enable any suit, appeal or application to be instituted, preferred or made for which the period of limitation prescribed by the Indian Limitation Act,1908, expired before the commencement of this Act; or

(b) affect any suit, appeal or application instituted, preferred or made before, and pending at, such commencement.

Section 32. Repeal

Rep. By the Repealing and Amending Act,1974 (56 of 1974), section 2 and Schedule I.

Schedule – Period of Limitations

Division I – Suits

PART I – Suits Relating to Accounts

*SL. NO.*	*DESCRIPTION OF SUIT*	*PERIOD OF LIMITATION*	*TIME FROM WHICH PERIOD BEGINS TO RUN*
1.	For the balance due on a mutual, open and current account where there have been reciprocal demands between the parties.	Three years	The close of the year in which the last item admitted or proved is entered in the account; such year to be computed as in the account.
2.	Against a factor for an account	Three years	When the account is during the continuance of the agency, demanded and refused or, where no such demand is made, when the agency terminates.
3.	By a principal against his agent for movable property received by the latter and not accounted for.	Three years	When the account is during the continuance of the agency, demanded and refused or, where no such demand is made, when the agency terminates.
4.	Other suits by principals against agents for	Three years	When the neglect or misconduct becomes known to the plaintiff.
5.	For an account and a share of the profits of dissolved partnership	Three years	The date of the dissolution.

PART II – Suits relating to Contracts


*SL. NO.*			*DESCRIPTION OF SUIT*			*PERIOD OF LIMITATION*			*TIME FROM WHICH PERIOD BEGINS TO RUN*
6.			For a seaman’s wages			Three years			The end of the voyage during which the wages are earned.
7.			For wages in the case of any other person.			Three years			When the wages accrue due.
8.			For the price of food or drink sold by the keeper of a hotel, tavern or lodging house.			Three years			When the food or drink is delivered
9.			For the price of lodging			Three years			When the price becomes payable .
10.			Against a carrier for compensation for non-delivery of or delay in delivering goods.			Three years			When the loss or injury occurs.
11.			Against a carrier for compensation for losing or injuring goods.			Three years			When the goods ought to be delivered.
12.			For the hire of animals, vehicles, boats or household furniture.			Three years			When the hire becomes payable.
13.			For the balance of money advance in payment of goods to be delivered.			Three years			When the goods ought to be delivered.
14.			For the price of goods sold and delivered when no fixed period of credit is agreed upon.			Three years			The date of delivery of the goods.
15.			For the price of goods sold and delivered to be paid for after the expiry of a fixed period of credit.			Three years			When the period of credit expires.
16.			For the price of goods sold and delivered to be paid for by a bill of exchange, no such bill being given.			Three years			When the period of the proposed bill elapses.
17.			For the price of trees or growing crops sold by the plaintiff to the defendant where not fixed period of credit is agreed upon.			Three years			The date of the sale.
18.			For the price of work done by the plaintiff for the defendant at his request, where no time has been fixed for payment.			Three years			When the work is done.
19.			For money payable for money lent.			Three years			When the loan is made.
20.			Like suit when the lender has given a cheque for the money.			Three years			When the cheque is paid.
21.			For money lent under an agreement that it shall be payable on demand.			Three years			When the loan is made.
22.			For money deposited under an agreement that it shall be payable on demanded, including money of a customer in the hands of his banker so payable.			Three years			When the demand is made.
23.			For money payable by the defendant to he plaintiff for money received by the defendant, for the plaintiff’s use.			Three years			When the money is paid.
24.			For money payable to the plaintiff for money paid for the defendant.			Three years			When the money is received.
25.			For money payable for interest upon money due from the defendant to the plaintiff.			Three years			When the interest becomes due.
26.			For money payable to the plaintiff for money found to be due from the fedendant to the plaintiff on accounts stated between them			Three years			When the accounts are stated in writing signed by the defendant or his agent duly Authorised in this behalf, unless where the debt is, by a simultaneous agreement in writing signed as aforesaid made payment at a future time, and then when that time arrives.
27.		For compensation for breach of a promise to do anything at a specified time, or upon the happening of a specified contingency.		Three years				When the time specified arrives or the contingency happens.
28.		On a single bond where a day is specified for payment		Three years				The day so specified.
29.		On a single bond, where no such day is specified.		Three years				The date of executing the bond.
30.		On a bond subject to a condition		Three years				When the condition is broken.
31.		On a bill of exchange or promissory-note payable at a fixed time after date.		Three years				When the bill or note falls due.
32.		On a bill of exchange payable at sight, or after sight but not at a fixed time.		Three years				When the bill is presented.
33.		On a bill of exchange accepted payable at a particular place.		Three years				When the bill is presented at that place.
34.		On a bill of exchange or promissory-note payable at a fixed time after sight or after demand.		Three years				When the fixed time expires.
35.		On a bill of exchange or promissory note payable on demand and not accompanied by any writing restraining or postponing the right to sue.		Three years				The date of the bill or note.
36.		On a promissory-note or bond payable by installments.		Three years				The expiration of the first term of payment as to the part then payable; and for the other parts, the expiration of the respective terms of payment.
37.		On a promissory-note or bond payable by installments which provides that, if default be made in payment of one or more installments, the whole shall be due.		Three years				When the default is made unless where the payee or obligee waives the benefit of the provision and then when fresh default is made in respect of which there is no such waiver.
38.		On a promissory-note given by the maker to a third person to be delivered to the payee after a certain event should happen.		Three years				The date of the delivery to the payee.
39.		On a dishonored foreign bill where protest have been made and notice given.		Three years				When the notice is given.
40.		By the payee against the drawer of a bill of exchange, which has been dishonored by non-acceptance.		Three years				The date of refusal to accept.
41.		By the acceptor of an accommodation-bill against the drawer.		Three years				When the acceptor pays.
42.		By a surety against the principal debtor.		Three years				When the surety pays the creditor.
43.		By a survey against a crusty.		Three years				When the surety pays anything in excess of his own share.
44. (a)		On a policy of insurance when the sum insured is payable after proof of the death has been given to or received by the insurers.		Three years				The date of the death of the deceased, or where the claim on the policy is denied, either partly or wholly, the date of such denial.
44. (b)		On a policy of insurance when the sum insured is payable after proof of the loss has been given to or received by the insurers.		Three years				The date of the occurrence causing the loss, or where the claim on the policy is denied either partly or wholly, the date of such denial.
45.		By the assured to recover preemie paid under a policy violable at the election of the insurers.		Three years				When the insurers elect to avoid the policy.
46.	Under the Indian Succession Act,1925 (39 of 1925), section 360 of Sec. 361, to compel a refund by a person to whom an executor or administrator has paid a legacy or distributed assets.				Three years		The date of the payment or distribution.
47.	For money paid upon on existing consideration which afterwards fails.				Three years		The date of failure.
48.	For contribution by a party who has paid the whole or more then his share of the amount due under a joined decree, or by a sharer in a joint estate who has paid the whole or more than his share of the amount of revenue due from himself and his co-sharers.				Three years		The date of the payment in excess of the plaintiff’s own share.
49.	By a co-trustee to enforce against the estate of a deceased trustee a claim for contribution.				Three years		When the right to contribution accrues.
50.	By the manager of joint estate of an undivided family for contribution, in respect of payment made by him on account of the estate.				Three years		The date of the payment.
51.	For the profits of immovable property belonging to the plaintiff which have been wrongfully received by the defendant.				Three years		When the profits are received.
52.	For arrears of rent.				Three years		When the arrears become due.
53.	By a vendor of immovable property for personal payment of up-paid purchase money.				Three years		The time fixed for completing the sale, or (where the title is accepted after the time fixed for completion) the date of the acceptance.
54.	For specific performance of a contract.				Three years		The date of fixed for the performance, or, if no such date is fixed, when the plaintiff has notice that performance is refused.
55.	For compensation for the breach of any contract, express or implied, not herein specially provided for.				Three years		When the contract is broken or (where there are successive breaches) when the breach in respect of which the suit is instituted occurs or (where the breach is continuing) when it ceases.

PART III-Suits relating to Declarations

56.	To declare the forgery of an instrument issued or registered.	Three years	When the issue or registration becomes known to the plaintiff.
57.	To obtain a declaration that an alleged adoption is invalid, or never, in fact, took place.	Three years	When the alleged adoption becomes known to the plaintiff.
58.	To obtain any other declaration.	Three years	When the right to sue first accrues.

PART IV – Suits relating to Declarations.

59.	To cancel or set aside an instrument or decree or for the rescission of a contract.	Three years	When the facts entitling the plaintiff to have the instrument or decree cancelled or set aside or the contract rescinded first becomes known to him.
60.	To set aside a transfer of property made by the guardian of a ward
(a)	By the ward who has attained majority;	Three years	When the ward attains majority.
(b)	By the ward’s legal representative	Three years
	When the ward dies within three years from the date of attaining majority;		When the ward attains majority.
	When the ward dies before attaining majority	Three years	When the ward dies.
61.	By a mortgagor -
	(a) to redeem or recover, possession of immovable property mortgaged;	Thirty years	When the right to redeem or to recover possession accrues.
	(b) to recover possession of immovable property mortgaged and afterwards transferred by the mortgage for a valuable consideration.	Twelve years	When the transfer becomes known to plaintiff.
	(c) to recover surplus collection received by the mortgage after the mortgage has been satisfied.	Three years	When the mortgagor reenters on the mortgaged property.

PART V – Suits relating to Immovable Property


62.	To enforce payment of money secured by a mortgage or otherwise charged upon immovable property.	Twelve years	When the money sued for becomes due.
63.	By a mortgage
	(a) for foreclosure;	Thirty years	When the money secured by the mortgage becomes due.
	(b) for possession of immovable property mortgaged.	Twelve years	When the mortgage becomes entitled to possession.
64.	For possession of immovable property based on previous possession and not on title, when the plaintiff while in possession of the property has been dispossessed.	Twelve years	The date of dispossession.
65.	For possession of immovable property or any interest therein based on title.	Twelve years	When the possession of the defendant becomes adverse to the plaintiff.
Explanation – for the purposes of this article -
	(a) Where the suit is by a remainder-man, a reversionary (other than a landlord); or a devisee the possession of the defendant shall be deemed to become adverse only when the estate of the remainder man, reversionary or devisee, as the case may be falls into possession;
	(b) Where the suit is by a Hindu or Muslim entitled to the possession of immovable property on the death of a Hindu or Muslim female the possession of the defendant shall be deemed to become adverse only when the female dies.
	(c) Where the suit is by a purchaser at a sale in execution of a decree when the judgment-debtor was out of possession at the date of the sale, the purchaser shall be deemed to be a representative of the judgment-debtor who was out of possession.
66.	For possession of immovable property when the plaintiff has become entitled to possession by reason of any forfeiture or breach of condition.	Twelve years	When the forfeiture is incurred or the condition is broken.
67.	By a landlord to recover possession from a tenant.	Twelve years	When the tenancy is determined.

PART VI – Suits relating to movable property

68.	For specific movable property lost, or acquired by theft, or dishonest misappropriation or conversion.	Three years	When the person having the right to the possession of the property first learns in whose possession it is.
69.	For other specific movable property.	Three years	When the property is wrongfully taken.
70.	To recover movable property deposited or pawned from a depositary or pawnee.	Three years	The date of refusal after demand.
71.	To recover movable property deposited or pawned, and afterwards brought from the deposited or pawned, and afterwards brought from the depositary or pawnee for a valuable consideration.	Three years	When the sale becomes known to the plaintiff.

PART VII – Suits relating to torts

72.	For compensation for doing or for omitting to do an act alleged to be in pursuance of any enactment in force for the time being in the territories to which this Act extends.	One year	When the act or omission takes place.
73.	For compensations for false imprisonment.	One year	When the imprisonment ends.
74.	For compensation for malicious prosecution.	One year	When the plaintiff is acquitted or the prosecution is otherwise terminated.
75.	For compensation for libel.	One year	When the libel is published.
76.	For compensation for slander.	One year	When the words are spoken or if the words are not actionable in themselves, when the special damage complained of results.
77.	For compensation for loss of service occasioned by the seduction of the plaintiff’s servant or daughter.	One year	When the loss occurs.
78.	For compensation for inducing a person to break a contract with the plaintiff.	One year	The date of the breach.
79.	For compensation for anillegal, irregular or excessive distress.	One year	The date of the distress.
80.	For compensation for wrongful seizure or movable property under legal process.	One year	The date of the seizure.
81.	By executors, administrators or representatives under the Legal Representatives Suits Act,1855.	One year	The date of the death of the person wronged.
82.	By executors, administrators or representatives under the Indian Fatal Accidents Act,1855.	Two years	The date of the death of the person killed.
83.	Under the Legal Representative Suits Act,1855 against an executor, and administrator or any other representative.	Two years	When the wrong complained of is done.
84.	Against one who, having a right to use property for specific purposes, perverts it to other purposes.	Two years	When the perversion first becomes known to the person injured thereby.
85.	For compensation for obstructing a way or a water course.	Three years	The date of the obstruction.
86.	For compensation for diverting a water course.	Three years	The date of the diversion.
87.	For compensation for trespass upon immovable property.	Three years	The date of the trespass.
88.	For compensation for infringing copyright or any other exclusive privilege.	Three years	The date of the infringement.
89.	To restrain waste.	Three years	When the waste begins.
90.	For compensation for injury caused by an injunction wrongfully obtained.	Three years	When the injunction ceases.
91.	For compensation -
	(a) for wrongfully taking or detaining any specific movable property lost, or acquired by theft, or dishonest misappropriation or conversion.	Three years	When the person having the right to the possession of the property first learns in whose possession it is.
	(b) for wrongfully taking or injuring or wrongfully detaining any other specific movable property.	Three years	When the property is wrongfully taken or injured, or when the detainee’s possession becomes unlawful.

PART VIII – Suits relating to trust and trust property

92.	To recover possession of immovable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration.	Twelve years	When the transfer becomes known to the plaintiff.
93.	To recover possession of immovable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration.	Three years	When the transfer becomes known to the plaintiff.
94.	To set aside a transfer to immovable property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment, made by a manager thereof for a valuable consideration.	Twelve years	When the transfer becomes known to the plaintiff.
95.	To set aside a transfer of movable property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment, made by a manager thereof for a valuable consideration.	Three years	When the transfer, becomes known to the plaintiff.
96.	By the manager of a Hindu, Muslim and Buddhist religious or charitable endowment to recover possession of movable or immovable property comprised in the endowment which has been transferred by a previous manager for a valuable consideration.	Twelve years	The date of death, resignation or removal of the transfer or the date of appointment of the plaintiff as manager of the endowment, whichever is later.

PART IX – Suits relating to miscellaneous matters

97.	To enforce a right of preemption whether the right is founded on law or general usage or on special contract.	One year	When the purchaser takes under the sale sought to be impeached, physical possession of the whole or part of the property sold, or, where the subject matter of the sale does not admit of physical possession of the whole or part of the property, when the instruments of sale is registered.
98.	By a person against whom an order referred to R.63 or rule 103 of Order XXI of the Code of Civil Procedure, 1908 or an order under section 28 of the Presidency Small Cause Courts Act,1882 has been made, to establish the right which he claims o the property comprised in the order.	One year	The date of the final order.
99.	To set aside a sale by a civil or revenue court or a sale for arrears of Government revenue or for any demand recoverable as such arrears.	One year	When the sale is confirmed or would otherwise have become final and conclusive had no such suit been brought.
100.	To alter or set aside any decision r order of a civil court any proceeding other than a suit of any act or order of an officer of Government in his official capacity.	One year	The date of the final decision or order by the court or the date of the act or order of the officer, as the case may.
101.	Upon a judgment including a foreign judgment, or a recognizance.	Three years	The date of the judgment or recognisance.
102.	For property which the plaintiff has conveyed while insane.	Three years	When the plaintiff is restored to sanity and has knowledge of the conveyance.
103.	To make good out of the general estate of a deceased trustee the loss occasioned by a breach of trust.	Three years	The date of the trustee’s death or if the loss has not then resulted, the date of the loss.
104.	To establish a periodically recurring right.	Three years	When the plaintiff is first refused the enjoyment for the right.
105.	By a Hindu for arrears of maintenance.	Three years	When the arrears are payable.
106.	For a legacy or for a share of a residue bequeathed by a testator or for a distributive share of the property of an intestate against an executor or an administrator or an administrator or some other person legally charged with the duty of distributing the estate.	Twelve years	When the legacy or share becomes payable or deliverable.
107.	For possession of a hereditary office.Explanation – A hereditary office is possessed when the properties thereof are usually received, or (if there are no properties) when the duties thereof are usually performed.	Twelve years	When the defendant takes possession of the office adversely to the plaintiff.
108.	Suit during the life of a Hindu r Muslim female by a Hindu or Muslim who, if the female died at the date of instituting the suit, would be entitled to the possession of land, to have an alienation of such land made by the female declared to be void except for her life or until her re-marriage.	Twelve years	The date of the alienation.
109.	By Hindu governed by Mitakshara Law to set aside his father’s alienation or ancestral property.	Twelve years	When the Aileen takes possession of the property.
110.	By a person excluded from a joint-family property to enforce a right to share therein.	Twelve years	When the exclusion becomes known to the plaintiff.
111.	By or on behalf of any local authority for possession of any public street or road or any part thereof from which it has been dispossessed or of which it has discontinued the possession.	Thirty years	The date of the dispossession or discontinuance.
112.	Any suit (except a suit before the Supreme Court in the exercise of its original jurisdiction) by or on behalf of the Central Government, or any State Government including the Government of the State of Jammu and Kashmir.	Thirty years	When the period of limitation would begin to run under this Act against a like suit by a private person.

PART X – Suits for which there is no prescribed period

113.

Any suit for which no period of limitation is provided elsewhere in this Schedule.

Three years

When the right to sue accrues.

Division II

*SL. NO.*	*DESCRIPTION OF SUIT*	*PERIOD OF LIMITATION*	*TIME FROM WHICH PERIOD BEGINS TO RUN*
114.	Appeal from an order of acquittal, -
	(a) under sub-section (1) or sub-section (2) of section 417 of the Code of Criminal Procedure,1898;	Ninety days	The date of the order appealed from.
	(b) under sub-section (3) of Section 417 of the that Code.	Thirty days	The date of the grant of Special leave.
115.	Under Code of Criminal Procedure,1898
	(a) From a sentence of death passed by a court of section or by a High Court in the exercise of its original Criminal Jurisdiction.	Thirty days	The date of the sentence
	(b) From any other sentence or any order not being an order of acquittal -
	(i) to the High Court	Sixty days	The date of the sentence or order.
	(ii) to any other Court	Thirty days	The date of the sentence or order.
116.	Under the Code of Civil Procedure,1908
	(a) To a High Court from any decree or order;	Ninety days	The date of the decree or order.
	(b) To any other court from any decree or order.	Thirty days	The date of the decree or order.
117.	From a decree or order of any High Court to the same Court.	Thirty days	The date of the decree or order.

Division III – Applications

PART I

*SL.NO.*	*DESCRIPTION OF SUIT*	*PERIOD OF LIMITATION*	*TIME FROM WHICH PEROID BEGINS TO RUN*
118.	For leave to appear and defend a suit under summary procedure.	Ten days	When the summons is served.
119.	Under the Arbitration Act,1940
	(a) For the filing in court of an award;	Thirty days	The date of service of the notice of the making of the award;
	(b) For setting aside an award or getting an award remitted for reconsideration.	Thirty days	The date of the service of the notice of the filing of the award.
120.	Under the Code of Civil Procedure,1908, to have the legal representative of a deceased plaintiff or appellant or of a deceased defendant or respondent, made a party.	Ninety days	The date of the death f the plaintiff, appellant, defendant or respondent, as the case may be;
121.	Under the same Code for an order to set aside an abatement.	Sixty days	The date of abatement.
122.	To restore a suit or appeal or application for review or revision dismissed for default of appearance or for want of prosecution or for failure to pay costs of service of process or to furnish security for costs.	Thirty days	The date of dismissal.
123.	To set aside a decree passed ex prate or to rehear an appeal decree or head ex prate.Explanation – For the purpose of this article, substituted service under rule 20 of Order V of the Code of Civil Procedure, 1908 shall not be deemed to be due service.	Thirty days	The date of the decree or where the summons or notice was not duly served when the applicant had knowledge of the decree.
124.	For a review of judgment by a court other than the Supreme Court.	Thirty days	The date of the decree or order.
125.	To record an adjustment or satisfaction of a decree.	Thirty days	When the payment or adjustment is made.
126.	For the payment of the amount of a decree by installments.	Thirty days	The date of the decree.
127.	To set aside a sale in execution of a decree, including any such application by a judgment-debtor.	Thirty days	The date o the sale.
128.	For possession by on dispossessed of immovable property and disputing the right f the decree-holder or purchaser at a sale in execution of a decree.	Thirty days	The date of the dispossession.
129.	For possession after removing resistance or obstruction of delivery of possession of immovable property decreed or sold in execution f a decree.	Thirty days	The date of resistance or obstruction.
130.	For leave to appeal as a pauper -
	(a) To thee High Court;	Sixty days	The date of decree appealed from.
	(b) To any other Court;	Thirty days	The date of decree appealed from.
131.	To any court for the exercise of its powers of revision under the Code of Civil Procedure,1908, or the Code of Criminal Procedure, 1898.	Ninety days	The date of the decree or order of sentence sought to be revised.
132.	To the High Court for a certificate of fitness to appeal to the Supreme Court under Clause (1) of Article 132, Article 133 or sub-clause (c) of clause (e) of Article 134 of thee Constitution or under any other law for the time being in force.	Sixty days	The date of the order or sentence.
133.	To the Supreme Court for Special leave to appeal,
	(a) In a case involving death sentence;	Sixty days	Th date of the judgment, final order or sentence.
	(b) In a case where leave to appeal was refusedby the High Court;	Sixty days	The date of the order of refusal.
	(c) In any other case.	Ninety days	When date of the judgment or order.
134.	For delivery of possession by a purchaser of immovable property at a sale in execution of a decree.	One year	When the sale becomes absolute.
135.	For the enforcement of a decree granting a mandatory injunction.	Three years	The date of the decree or where a date is fixed for performance, such date.
136.	For the execution of any decree (other than a decree granting a mandatory injunction) or order of any civil court.	Twelve years	Where the decree or order becomes enforceable or where the decree or any subsequent order directs any payment of money or the delivery of any property to be made at a certain date or at recurring period, when default in making the payment or delivery in respect of which execution is sought, takes place:Provided that an application for the enforcement or execution of a decree granting a perpetual injunction shall not be subject to any period of limitation.

PART II

Other applications

137.

Any other application for which no period of limitation is provided elsewhere in this Division.

3 yrs

When the right to apply accrues.

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