20. Penalties.—(1) If any person contravenes the provisions of section 12, he shall be punishable
with fine which may extend to five hundred rupees.
(2) Any person who attempts to contravene or abets the contravention of the provisions of section 12
shall be deemed to have contravened those provisions.
21. Offences by companies.—(1) If the person committing an offence under section 12 is a
company, every person who at the time the contravention was committed was incharge 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 contravention 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 exercised all
due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1) where an offence under section 12 has
been committed by a company and it is proved that the offence has been committed with the consent or
1. Subs. by Act 25 of 1964, s. 6, for section 17 (w.e.f. 16-6-1964).
2. Subs. by 41 of 1994, s. 2, for sub-section (1) (w.e.f. 8-7-1994).
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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 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.
22. Previous sanction of Central Government for prosecution.—No prosecution for any offence
punishable under this Act shall be instituted except with the previous approval of the Central
Government.
23. Protection of action taken in good faith.—No suit prosecution or other legal proceeding shall
lie against any person for anything in good faith done or intended to be done under this Act or the rules
made thereunder.
24. Power to delegate.—The Central Government may, by order notified in the Official Gazette,
direct that any power exercisable by it under this Act may also be exercised in such cases and subject to
such conditions, if any, as may be specified in the order by such officer or authority as may be specified
therein.
25. Suspension of operation of Act.—(1) If the Central Government is satisfied that circumstances
have arisen rendering it necessary that certain of the restrictions imposed by this Act should cease to be
imposed or if it considers it necessary or expedient so to do in the public interest the Central Government
may, by notification in the Official Gazette, suspend or relax to a specified extent either indefinitely or for
such period as may be specified in the notification the operation of all or any of the provisions of this Act.
(2) Where the operation of any provisions of this Act has under sub-section (1) been suspended or
relaxed indefinitely, such suspension or relaxation may at any time while this Act remains in force be
removed by the Central Government by notification in the Official Gazette.
26. Power of Central Government to make rules.—(1) The Central Government may, subject to
the condition of previous publication, make rules or 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 constitution of the Board, the number of persons to be appointed as members from each of
the categories specified in sub-section (3) of section 4, the term of office and the other conditions of
service of, the procedure to be followed by, and the manner of filling vacancies among, the members
of the Board;
(b) the circumstances in which, and the authority by which, members may be removed;
(c) the holding of a minimum number of meetings every year;
(d) the pay and allowances and other conditions of service of the secretary;
(e) the maintenance of records of all business transacted at meetings of the Board and the
submission of copies of such records to the Central Government;
(f) the preparation of budget estimate of the receipts and expenditure of the Board and the
authority by which such estimates should be sanctioned;
(g) the conditions subject to which, and the mode in which, contracts may be made by or on
behalf of the Board;
(h) the powers of the Board and the Executive Committee and the Chairman, in regard to the
incurring of expenditure; and the re-appropriation of estimated savings in any budget heard to another
such head;
(i) the conditions subject to which the Board may borrow;
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(j) the form and the manner in which accounts should be kept by the Board;
(k) the registration of coir spindles and looms for the manufacture of coir products as also the
registration of manufacturers of coir products and the conditions for such registration; the grant or
issue of licences under this Act; the fees to be levied in respect of such registration and licences; and
the suspension and cancellation of such registration and licences;
(l) the form of applications for registration and licences under this Act and the fee, if any, to be
paid in respect of any such applications;
(m) the collection of any information or statistics in respect of the coir industry;
(n) any other matter which is to be or may be prescribed.
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[(3) Every rule made by the Central Government 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 in two or more successive sessions, and if 2
[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.]
27. Power of Board to make by-laws.—(1) The Board may make by-laws consistent with this Act
and the rules made thereunder, to provide for,—
(a) the dates, times and places of its meetings and of the meetings of the Executive and other
Committees and the quorum for such meetings, and the procedure thereat;
(b) the delegation of powers and duties to the Executive or any other Committee, or to its
Chairman, Vice-Chairman, Secretary or any other of its officers;
(c) the travelling allowances of members and of members of Committees;
(d) the appointment, promotion and dismissal of its officers and other employees other than the
Secretary and the creation and abolition of their posts;
(e) the conditions of service of its officers and other employees other than the Secretary including
their pay, leave, leave allowances, pensions, gratuities, compassionate allowances and travelling
allowances and the establishment and maintenance of a provident fund for them;
(f) the maintenance of its accounts;
(g) the persons by whom, and the manner in which payments, deposits and investments may be
made on its behalf;
(h) the custody of moneys required for its current expenditure and the investment of moneys not
so required;
(i) the preparation of statements showing the sums allotted to departments of the Central and
State Governments and other institutions.
(2) No by-law shall take effect until it has been confirmed by the Central Government and published
in the Official Gazette; and the Central Government in confirming a by-law may make any change therein
which appears to it to be necessary.
(3) The Central Government may, by notification in the Official Gazette, cancel any by-law which it
has confirmed and thereupon the by-law shall cease to have effect.
1. Subs. by Act 25 of 1964, s. 7, for sub-section (3) (w.e.f. 16-6-1964).
2. Subs. by Act 4 of 1986, s. 2 and the Schedule, for the words “before the expiry of the session in which it is so laid or the
successive sessions aforesaid” (w.e.f. 15-5-1986).
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[(4) Every by-law 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 by-law or both Houses agree that the by-law should not be made, the by-law 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 by-law.