 the textiles committee bill, 1962(as introduced in lok sabiia on 23rd november, 1962)  (as introduced in lok sabha) a billto provide for the establishment of a committee for ensuring the quality of textiles and textile machinery and for matters connected therewith be it enacted by parliament in the thirteenth year of the republic of india as follows:-1 (1) this act may be called the textiles committee act, 1962 short title extent and (2) it extends to the whole of india except the state of jammu =~ence-5 and kashmir (3) it shall come into force on such date, as the central government may, by notification in the official gazette, appoint z in this act, unless there is anything repugnant in the subject definitiona or context,-10 (a) "chairman" means the chairman of the committee: (b) "committee" means the committee established under section 3; (c) "fund" :rqeans the texti1e~ fund referred to in sectiod 7; (d) "member" means a member of the committee and j, includes the chairman and the vice-chairman; (e) "presc::ribeg" 1d~i;lns pres~ru~)~c1 by rulels 1l1l~qe 1lp~r this act; (f) "textile machinery" means the equipment employed directly or indirectly for the processing of textile fibre into yarn and for the manufacture of fabric therefrom by weaving or knitting and includes equipment used either wholly or partly for the finishing, folding or packing of textiles; s (g) "textiles" means any fabric or cloth or yam made wholly or in part of cotton, or wool or silk or artificial silk or other fibre; (h) "vice-chairman" means the vice-chairman of the committee 10 batabuh· 3 (1) the central government shall, by notification in the =t~!~- official gazette, establish with effect from such date as may be mittee specified in the notification, a committee to be known as the textiles committee, which shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and ~ispose of is property and to contract and may, by that name, sue or be sued (2) the head oftlce of the committee shall be in bombay (3) the committee shall consist of-(a) a chairman to be appointed by the central government; (b) a vice-chairman who shall be the textile commissioner, 20 ex officio; (c) a joint secretary to the government of india to be appointed by the central government, ex officio; (d) such other members as the central government may think ·fit to appoint who, in the opinion of that government, have 2s special knowledge or practical experience in matters relating to the textile industry and trade and the manufacture of textile machinery punctlona of the com-iiiiuee 4 (1) subject to the provisions of this act, the functions of the committee shall generally be to ensure by such measures, a8 it 30 thinks fit, standard qualiues of textiles both for internal markeung and export purposes and the manufacture and use of standard type of textile machinery (2) without prejudice to the generality of the provisions of subsection (1), the committee may-35 (a) undertake, assist and encourage scientific technolorfcal ~nd economic research in textile industry an~ te"ti}e machinery; (b) promote export of textiles and textile machinery and carryon propaganda for that purpose; (c) evolve standard varieties of textiles for internal consumption and for the purposes of export and for affixing suitable marks registered under the trade and merchandise marks act, 1958 on such standardised varieties of textiles; (d) evolve standards of inspection of textiles and textile machinery; (e) provide for the inspection and examination of-10 (i) textiles; (ii) textile machinery at any stage of manufacture and also while it is in use at mill-heads; (f) establish laboratories and test houses for the testing of textiles; is (g) provide for testing textiles and textile machinery in laboratories and test houses other than those established under clause (i); (h) collect statistics for any of the above mentioned purposes from-(i) manufacturers of, and dealers in, textiles; (ii) manufacturers of textile machinery; and (iii) such other persons as may be prescribed; (i) advise on all matters relating to the development of textile industry and the production of textile machinery; as (j) provide _ for such other matters as may be prescribed (3) in the discharge of its functions, the committee shall be bound by such directions as the central government may, for reasons to be stated in writing, give to it from time to time 5 the committee may exercise all such powers as may be neces- powers of 30 sary or expedient for the purpose of carrying out its functions under ~:commit­this act 8 for the purpose of enabling the committee to discharge its grants by functions under this ad, the central government may, after due ~~:tc::\" appropriation made by parliament by law in this behalf, pay to the the commit-jos oodnnittee in each financial year such sums of money as that gov- tec emment considers necessary by way of grant, loan or otherwise conltituuon of fund 7 (1) the committee shall have a fund to be called the textiles fund and there shall be credited thereto-(a) all moneys transferred to it u·nder clause (a) of subsection (2) of section 24; (b) all moneys paid by the central government under 5 section 6; (c) all fees and other charges levied under this act; (d) all moneys received qy the committee by way of grant, gift, donation, contribution, transfer or otherwise (2) the moneys in the fund shall be applied for-10 (a) meeting the pay and allowances of the officers and other employees of the committee and other administrative expenses of the committee; (b) carrying out the purposes of this act (3) all moneys in the fund shall be deposited in the state bank 15 of india or be invested in such securities as may be approved by the central government standinj or fiilltoc committee •• 8 (1) the committee may constitute standing committees or ad hoc committees for exercising any power or discharging any duty of the committee or fol' inquiring into or reporting and advising on 20 any matter which the committee may refer to them (2) ~ standing committee shall consist exclusively of members of the committee  (3) an ad hoc committee may include persons who are not members of the committee but their number shall not exceed one 25 half of its strength ~~e~l:' t (1) the central government shall, in consultation with the fees o~ tife committee committee, appoint a person to be the secretary of the committee (2) svbject to such rules as may be made by the central government in this behalf, the committee may appoint such other 30 officers and employees as it considers necessary for the efficient performance of its func!tions (3) the methods of appointment, the conditions of service and the scales of pay of the officers and other employees of the committee shan,-35 (a) as respects the secretary, be such as may be prescribedi and (b) as respect the other officers and employees, be such as may be determined by regulations made by the committee under this act 340(1944-10 subject to the provisions of this act, every person employed tralllfer of s by the cotton textiles fund committee constituted under section 5 :r:fn,:nof the cotton textiles fund ordinance, 1944, immediately before the ployees to date of establishment of the committee shall, on and from such date, ~ comnlltbecome an employee of the committee with such designation as the committee may determine and shall hold his office or service therein 10 by the same tenure, at the same remuneration and upon the same terms and conditions as he would have held on such date if the committee had not been established and shall continue to do so unless and until his employment in the committpe is terminated or until such tenure, remuneration and terms and conditions are duly is altered by the committee: provided that the tenure, remuneration and terms and conditions of service of any such person shall not be altered to his disadvantage without the previous approval of the central government 11 (1) the committee may, on application made to it or other- inspection 20 wise, direct officer specially authorised in that behalf to examine the quality of textiles or the suitability of textile machinery for use at the time of manufacture or while in use in a textile mill and submit a report to the committee (2) subject to any rules made under this act, such an oftlcer 25 shall have power to-(a) inspect any operation c"arried on in connection with the manufacture of textiles or textile machinery in relation to which construction particulars, marks or inspection standards have been specified; (b) take samples of any article or of any material or substance used in any article or process in relation to which construction particulars marks or inspection standards have been specuaed; i (c) exercise such other powers as may be prescribed 35 (3) on receipt of the report referred to in sub-section (1), the committee may tender such advice, as it may deem fit, to the manufacturer of textiles, the manufacturer of textile machinery and the applicant ' levy of feca 12 (1) the committee may levy such fees as may be prescribfor inspection and cx- edamination (a) for inspection and examination of textiles, (b) for inspection and examination of textile machinery (c) for any other service which the committee may render 5 to the manufacturers of textiles and textile machinery: provided that the central government, may by notification in the official gazette, exempt from the payment of fees, generally or in any particular case (2) any sum payable to the committee under sub-section (1) 10 may be recovered as an arrear of land revenue accounts and audit 13 (1) the committe shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including a balance-sheet in such form as may be prescribed by rules made under this act is (2) the accounts of the committee shall be audited annually by the comptroller and auditor-general of india or by such other auditors qualified to act as auditors of companies under the law for the time being in force relating to companies, as the government may appoint  20 (3) the auditors shall, at all reasonable times, have access to the books of accounts and other documents of the committee and may, for the ·purposes of the audit, call for such explanation and information as they may require or examine any member or oftlcer of the committee 2s (4) the auditors shall forward to the government a copy of their report together with an audited copy of the accounts of the committee (5) the cost of the audit as determined by the central government shall be paid out of the fund 30 delegation of/owen an duties 14 the committee may, by general or special order in writin" direct that all or any of the powers or duties which may be exercised or discharged by it shall, in such circumstances and under such conditions, if any, as may be specified in its order, be exercised or discharged also by any officer or employee of the committee speci- 3s fled in this behalf in the order a 15 ~o act or proceeding of the committee shall be invalidated cts or proceedings of merely by reason of-~::;cc (a) any vacancy in, or any defect in the constitution of, the iovalidated committee; or 40 (b) any defect in the appointment of a person acting as a member of the committee; or (c) any irregularity in the procedure of the committee not affecting the merits of the case s 16 all officers and employees of the committee shall, while ofllcen and acting or purporting to act in pursuance of the provisions of this =p~~i~! act or of any rule or regulation made thereunder, be deemed to be tee  to be 45 of 1860 public servants within the meaning of section 21 of the indian penal ~~tl;~ aero code 10 17 (1) where the committee has evolved any standard variety powertoplo of textiles either for internal consumption or for the purposes of ~~it i:~~~ti export or has evolved standard type of textile machinery and on the marketinl of recommendation made to it in this behalf, the central government ~~:i:lma~h~ is of opinion that any textiles or textile machinery which iller')' i s do not conform to the standards laid by the committee in respect thereof, should not be exported or sold for internal consumption, the central government may, by order published in the official gazette, prohibit such export or sale (2) if any person contravenes any order issued under sub-20 section '(1) probibiting-(a) the export of any textiles or textile machinery, or (b) the sale of any textiles or textile machinery far internal consumption, he shall, on conviction, be punishable,-(i) for the first offence with imprisonment for a term which may extend to one year or with fine or with both; 30 (it) for the i8coild or a subsequent offence with imprisonment for a term which may extend to one year and also with fine and in the absence of special and adequate reasons to be mentioned in the judgment of the court, such imprisonment shall not be less than three months (3) all textiles and textile machinery to which an order prohibiting export ap~ies under sub-section (1), shall be deemed to be textiles or textile machinery of which the export has been prohibited i or 1878 35 under section 19 of the sea customs act, 1878 and all the' provisions of that act shall have effect accordingly (4) nothing in clause (a) of sub-section (2) shan affect any confiscation or penalty to which the person may be liable uilder the : or 1878 provisions of the sea customs act, 1878 as applied by sub-section (3) (5) any court trying the contravention of an order prohibiting the marketing of textiles or textile machinery under sub-section (1) may without prejudice to the provisions of clause (b) of sub-section (2) direct that the textiles or textue machinery in respect of which the court is satisfied that such contravention has been committed, s shall be forfeited to the central government offences by 18 (1) if the person committing any offence under this act is a companies 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 10 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 such punishment provided in this act if he proves that the offence was committed without his knowledge or 15 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 this act has been committed by a company and it is proved that the offence has been committed with the con- 20 sent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other oftlcer sh,all also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly 2s ezplanation-for the purposes of this section-(4) '~comp'd7" mebdi a body corporate ~ includes a firm or other association of individuals; and (b) "director" in relation to a finn, means a partner in the ~ 30 procedure 11 no prosecution for any offence punishable under this act ~~~cution shall be instituted except by or with the conaent of the central government jurisdiction zoo no court inferior to that cd a presidency magistrate or a of co\i11i magistrate of the fjnt clus,shau try any oftence punishable under 35 ·~act • prc?tection of 21 no suit, prosecution or other legal proceeding shauli against ~:: teen the committee or any member, officer or employee of the committee act for anything which is in good faith done oj' intended to be done in pursuance of this act or of any rule or regulation made thereunder 40 zz (1) the central govemment may, subject to the condition power to of previous publication, by notification in the ofbcial gagette, make nate  make rules for carrying out the purposes of this act (2) in particular and without prejudice to the generality of the 5 foregoing power, such rules may provide for-(a) the number of members and the composition of the committee and the manner in which the members shall be chosen; 10 (b) the term of office of and the manner of ftlling casual vacancies among the members of the com!d-ittee; (c) the auowances, if any, payable to the members of the committee; (d) the disqualification for membership of the committee; is (e) the scale of fees that may be levied for inspection and examination under section 12 (i) the fonn in which the committee shall prepare its annual statement of accounts and balanc~heet; (g) the method of appointment, the conditions of service :10 and the scale of pay of the secretary of the committee; (h) the collection of any information or statistics in respect of textile industry and trade and thcl manufacture of textile machinery; (i) the mode of inspection by the committee and the man-:1s ner in which samples may be taken by it (3) every rule made under this section by the central government 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 clays which may be comprised in one session or in two successive 30 sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however 3s that any such modification or annulment shall be without prej'udice to the validity of anything previously done under that rule 23 (1) the committee may, with the previout sanction of the power to central government, by notification in the oftlcial gazette, make =: regularegulations, not inconsistent with this act and the rules made thereunder to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this act (2) in particular and without prejudice to the generality of the fop-going power, such regulations may provide· for-5 (a) the meeting of the committee, standing committees and ad hoc committees, the quorum for· such meetings and the conduct of business thereat; (b) the allowances payable to the members of the standing committees or the ad hoc committees; 10 (c) the methods of appointment, the conditions of service and the scales of pay of the ofticoers (other than the secretary) and other employees of the committee;  (d) the duties and conduct of officers and other employees  of the ooldldltteej and is (e) any ather matter in respect of which the committee is empowered or required to make regulations under this act (3) the central government may, by notification in the official gazette, amend, vary or rescind any regulation which it bas sanctioned; and thereupon the regulation shall have effect accordingly 20 but without prejudice to the exercise of the powers of the committee under sub-section (1) 24 (1) with effect from the date on which the committee is es1bblished under section 3, the cotton textiles fund ordinance, 1944 9hall stand repealed 2s 34 of j944 (2) notwilthstanding the repeal of the said ordfnance,-(a) all moneys at the credit of the cotton textiles fund established under ,the repealed ordinance immediately before the said date shall with effect from the said date stand transferred to and form part of the textiles fund referred to in section '1; 30 (b) any rules made or deemed to have been made or anything done or any action taken in exercise of any of the powers conferred by or under the said ordinance shall be deemed to have been made, done or taken in exercise of the powers conferred by or under this act, as if this act were in force on the 35 day on which such rules were made, such thing was done or such &etion was taken the cotton textiles fund ordinance, 1944 provides for the establislunent of a cotton tejcl;iles fund and the constitution of a committee to administer the fund this fund was originally created from the proceeds of the levy of a duty of customs at 3% on the exmill prices of cloth and yarn exported, and later on, the central government used to make contributions to the fund the cotton textiles fund committee has been doing useful work and the inspection scheme of the committee has found increasing popularity and authenticity in trade circles, both in india and abroad 2 in recent years, however, conditions in the textiles industry have changed indian cloth is facing ever-increasing competition in the international markets from other exporting countries like japan, china, etc the millowners association and the manufacturers of textile machinery in india have been stressing the necessity of an independent inspectorate for indigenous textile machinery in artier to meet their needs, the tarift commission recommended in 1960 that adequate arrangements should be made for an impartial investigation of all complaints from the consuming industries about tbe quality of indigenous products and for keeping a continuous watch over the piiogress of the textile machmery as a whole under the existing ordinance, the powers of the committee have not been clearly defined and ,they are also restricted in scope 3 it 1& theftfore considered j!ecessary that in the interests of textile industry the committee should be re-constituted and its functions should be enlarged it is accordingly proposed to establish a commi·ttee which shall be a body corporate and it should be vested with enl-ged statu1xllry powers under the existing ordinance, the functions of the committee were restricted to cloth and yarn only it is proposed to empower the committee to ensure the quality of all textiles, whether made wholly or partly of cotton, wool, silk, artificial silk or fibre it is further considered that the work of inspection of indigenous textile machinery and stores should also be mtrusted to the commi'btee the functions of the committee should generally be to ensure standard qualities of textiles for internal marketing and export purposes and the manufacture and use of standard type of textne machinery 4 the present bill seeks to achieve the above objects and to replace the existing cotton textiles fund ordinance, 1944 new delhi; manubhai shah the 14th nooembe7', 1962 i clause 6 of the bill provides for the central government making grants to the textiles committee this is intended to enable the committee to meet the pay and allowances of the officers and other employees of the committee and other administrative expenses of the committee and also to ensure by such measures, as it thinks fit, standard qualities of textiles both for internal marketing and~export purposes and the manufacture and use of standard type of textile machinery 2 the balance standing at the credit of the cotton textiles ~'l1nd established under the cotton textiles fund ordinance, 1944 as on the 10th october, 1962 was of the order of ,rs 78 lakhs by virtue of clause 24(2) of the bill all moneys standing at the credit of the cotton textiles fund shall stand transferred to and form part of the textiles fund with effect fro~ the date on which the cotton textiles fund ordinance, 1944 is repealed besides under clause 12(1) of the bill the committee may levy such fees as may be prescribed for inspection and examination of textiles, for inspection and examination of textile machinery and for any other service which the committee may render to the manufacturers of textiles and textile machinery it is not possiple to give precisely at this stage the amount of fees that the committee may collect for inspection of textiles, etc however, it is expected that the scheme of inspection of the committee will be a self-supporting one 3 the non-recurring and recurring expenditure of the committee is estimated at about rs 4 lakhs and rs 26:3 lakhs respectively for the present the need for making any specific grant by the central government to the fund may not arise  memorandum regarding delegated legislationclause 22 of the bill empowers the central government to make rules for carrying out the plll'poses of the act the matters in respect of which such rules may be made relate, inter alia, to the composition of the textile conunilttee, the manner in which the members shall be chosen, the tenn of office, the allowances, if any, payable to the members and simil8ll" matters of detail 2 clause 23 of the bill enables the committee to make regulation • the matters in respect of which regulations may be made relate to procedure like the conduct of meetings, methods of appointment, conditions of service, of ofbcers and other employees of the committee 3 the matters in respect of which rules and regulattons can be made are thus matters of procedure or administrative detail the delegation of powers is thus of - donnal ehancter   billto provide for establishment of a committee for ulsul'ing the quality of textiles and textile machinery and for matters connected therewith the president bas, in pursuance of clauses (i) and (3) of article 117 of the constitution of india, recommended to lok sabha the introduction and consideration of the bid m n kaul, secretary (shri manubhai shah, minister of international trade in the ministry of commerce and industry) 