LOKA
SHIKSHANA TRUST (TAKING OVER OF MANAGEMENT) ACT, 1982 THE LOKA SHIKSHANA TRUST (TAKING OVER OF MANAGEMENT) ACT,
1982 [Act No. 09 of 1982] [10th March, 1982] An Act to provide
for taking over of the management of the Loka Shikshana Trust (Peoples'
Education Trust) by the State Government for a limited period in the public
interest and in order to secure the proper management thereof and for/matters
connected therewith or incidental thereto. Whereas the Loka
Shikshana Trust (Peoples' Education Trust), a trust registered under the Bombay
Public Trusts Act, 1950 was created to educate the people by establishing or
helping institutions calculated to educate the people or by publishing
magazines and journals and among others it was publishing the Kannada daily
newspaper the Samyukta Karnataka' from Hubli and Bangalore; And Whereas the
protracted disputes and litigation connected with the management of the Trust
has resulted in the mismanagement of the affairs of the Trust; And Whereas in the
interest of the general public and to secure proper management of the Loka
Shikshana Trust (Peoples' Education Trust) and for matters connected therewith
or incidental thereto, It is expedient to provide for taking over the
management of the said trust by the State Government; Be it enacted by
the Karnataka State Legislature in the Thirty third Year of the Republic of
India as follows :-- (1)
This Act may be called the Loka Shikshana Trust (Taking
over of Management) Act, 1982. (2)
It shall be deemed to have come into force on the 31st
day of August, 1981. In this Act unless
the context otherwise requires,-- (a)
"Administrator" means the person or body of
persons appointed as the Administrator under section 4; (b)
"appointed day" means the date of the
commencement of this Act; (c)
"Trust" means the Loka Shikshana Trust, a trust
registered under the Bombay Public Trusts, Act, 1950 (Bombay Act 29 of 1950)
and includes,-- (i)
the undertakings thereof; (ii)
all assets, rights, lease-holds, powers, authorities and
privileges and all property, moveable and immoveable, including lands,
buildings, works, workshops, projects, stores, instruments, machinery,
automobiles and other vehicles, cash balances, reserve funds, investments and
book debts and all other rights and interests arising out of such property as
were immediately before the appointed day in the ownership, possession, power or
control of the Trust and all documents of whatever nature relating thereto. Explanation:--For
the purpose of this section the properties which are the subject matter of O.S.
4 of 1977 on the file of the District Judge, Dharwar and MFA 263 of 1977 on the
file of the High Court of Karnataka and which are in the possession of the
receivers appointed by the courts in such proceedings shall be deemed to be
part of the trust. This shall not in any way prejudicially affect the right of
any person in respect of such property. (1) On and from the appointed day, and for a period of two years thereafter,
the management of the Trust shall vest in the State Government: Provided that if
the State Government is of opinion that in order to secure the proper
management of the Trust, it is expedient that such management should continue
to vest in the State Government after the expiry of the said period of two
years, it may, from time to time, issue directions for the continuance of such
management for such period, not exceeding one year at a time, as it may think
fit; so, however, that the total period for which such management shall
continue to vest in the State Government shall not, in any case, exceed five
years. (2)
Any contract, whether express or implied, or other
arrangement, in so far as it relates to the management of the business and
affairs of the undertakings of the Trust, and in force immediately before the
appointed day, shall be deemed to have terminated on the appointed day. (3)
All persons in charge of the management of the Trust
including the receivers appointed by the courts, the persons holding office as
Trustees or any other managerial personnel, immediately before the appointed
day shall, notwithstanding anything contained in any agreement or contract or
other law or in any judgment, decree or order of any court, tribunal or other
authority, be deemed to have vacated their offices as such on the appointed
day. (4)
After the expiry of the period specified in sub-section
(1) or continued under the proviso thereto, the management of the Trust shall
vest in accordance with the order, if any of any court, Tribunal or other
authority, and if there be no such order, vest in the governing body (by
whatever name called) of the Trust or such other body or person, as the case
may be, entitled there to. (1)
The State Government shall as from the appointed day,
appoint a person or a body of persons as the Administrator of the Trust for the
purpose of taking over the management thereof and the Administrator shall carry
on the management of the Trust for and on behalf of the State Government. All
persons in charge of the management of the Trust immediately before the appointed
day shall cease to be in charge of such management and shall be bound to
deliver such management to the Administrator. (2)
The State Government may issue such directions (including
directions as to initiating, defending or continuing any legal proceedings
before any court, tribunal or other authority) to the Administrator as to his
powers and duties as that Government may deem desirable and the Administrator
may apply to the State Government at any time, for instructions as to the
manner in which he shall conduct the management of the Trust or in relation to
any matter arising in the course of such management. (3)
Subject to the other provisions of this Act and the rules
made thereunder and to the control of the State Government, the Administrator
shall be entitled, notwithstanding anything contained in any law for the time
being in force, to exercise, in relation to the Trust, the powers of the
governing body of the Trust, including the powers to dispose of any property or
assets of such Trust, whether such powers are derived under any law for the
time being in force or from the memorandum and rules and regulations of the
Trust or from any other source. (4)
Every person having possession, custody or control of any
property forming part of the Trust shall deliver forthwith such property to the
Administrator or to any officer or other employee of the State Government as
may be authorised by the State Government in this behalf. (5)
Any person who, on the appointed day, has in his
possession or under his control any books, papers or other documents relating
to the Trust, including the minutes books containing the orders or resolutions
of the person in charge of the management of the Trust before the appointed
day, the current cheque books relating to the Trust, any letters, memoranda,
notes or other communications between him and the Trust shall, not withstanding
anything contained in any other law for the time being in force be liable to
account for the books, papers and other documents including such minutes books,
cheque books, letters, memoranda, notes or other communications to the
Administrator or to such person (being an officer or other employee of the
State Government) as may be authorised by the State Government in this behalf. (6)
Every person in charge of the management of the Trust
immediately before the appointed day shall, within ten days from that day or
within such further period as the State Government may allow in this behalf,
furnish to the Administrator a complete inventory of all the properties and
assets (including particulars of book debts and investments and belongings)
forming part of the Trust immediately before the appointed day and of all the
liabilities and obligations of the Trust, subsisting immediately before that
day, and also of all agreements entered into by the Trust and in force
immediately before that day. (7)
The Administrator shall receive from the funds of the
Trust such remuneration as the State Government may fix. Notwithstanding
anything contained in any law for the time being in force, no person in respect
of whom any contract or management or other arrangement is terminated by reason
of the provisions contained in sub-section (2) of section 3 or who ceases to hold
any office by reason of the provisions contained in sub-section (3) of that
section, shall be entitled to claim any compensation for the premature
termination of the contract or management or other arrangement or for the loss
of his office, as the case may be. (1)
Notwithstanding anything contained in sub-section (1) of
section 3, if, at any time before the expiry of the period referred to in that
sub-section, it appears to the State Government that the purposes of vesting of
the management of the Trust in the Government have been fulfilled or that for
any other reasons it is not necessary that the management of the Trust should
remain vested in that Government, it may, by order published in the official
Gazette, relinquish the management of the Trust with effect from such date as
may be specified in the order. (2)
On and from the date specified under sub-section (1), the
management of the Trust shall be transferred in accordance with the order, if
any, of any court, Tribunal or other authority, and if there be no such order
shall be transferred to the governing body (by whatever name called) of the
Trust, or such body or person as the case may be, entitled thereto. Any person who,- (a)
having in his possession or custody or under his control
any property forming part of the Trust, wrongfully withholds such property from
the Administrator or any person authorised under this Act, or (b)
wrongfully obtains, possession of any such property, or (c)
wilfully retains, or fails to deliver, any property
forming part of the Trust or removes or destroys it, or (d)
wilfully withholds from or fails to account for any
books, papers or other documents which may be in his possession or custody or under
his control to the Administrator or any person authorised under this Act, or (e)
fails, without any reasonable cause, to furnish
information or particulars as provided in sub-section (6) of section 4, shall
be punishable with imprisonment for a term which may extend to two years, or
with fine which may extend to ten thousand rupees, or with both. (1) Where an offence under this Act has been committed by a company, every
person who at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of the business of the company as
well as the company, shall be deemed to be guilty of the Offence and shall be
liable to be proceeded against and punished accordingly : Provided that nothing
contained in this sub-section shall render any such person liable to any
punishment, if he proves that the offence was committed without his knowledge
or that he had exercised all due diligence to prevent the commission of such
offence. (2) Notwithstanding anything contained in sub-section (1), where any offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is
attributable to, any neglect on the part of any 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. In computing the
period of limitation prescribed by any law for the time being in force for any
suit or application against any person by the Trust in respect of any matter
arising out of any transaction in relation to the Trust, the time during which
this Act is in force shall be excluded. The provisions of
this Act or any notification, order or rules made thereunder shall have effect
notwithstanding anything inconsistent therewith contained in any law other than
this Act or in any instrument having effect by virtue of any law other than
this Act or in any decree or order of any court, tribunal or other authority. (1)
No suit, prosecution or other legal proceedings shall lie
against the Administrator or any officer or other employee of the State
Government for anything which is in good faith done or intended to be done
under this Act. (2)
No suit or other legal proceeding shall lie against the
State Government or the Administrator or any of the officers or other employees
of the State Government for any damage caused or likely to be caused by
anything which is in good faith done or intended to be done under this Act. (1) If the State Government is satisfied, after such inquiry as it may think
fit, that any contract or agreement entered into at anytime within one year
immediately proceeding the appointed day, between the Trust and any other
person, has been entered into in bad faith, or is detrimental to the interests
of the Trust, it may make an order cancelling or varying (either
unconditionally or subject to such conditions as it may think fit to impose)
such contract or agreement and thereafter the contract or agreement shall have
effect accordingly : Provided that no
contract or agreement shall be cancelled or varied except after giving to the
parties to the contractor agreement a reasonable opportunity of being heard. (2) Any person aggrieved by an order under sub-section (1) may make an
application to the High Court of Karnataka for the variation or reversal of
such order and thereupon such court may confirm, modify or reverse such order. If the
Administrator is of opinion that any contract of employment entered into by the
Trust at any time before the appointed day, is unduly onerous, he may, by
giving to the employee one month's notice in writing or the salary or wages for
one month in lieu thereof, terminate such contract of employment. (1)
The State Government may, by notification in the Official
Gazette, make rules for carrying out the provisions of this Act. (2)
Every rule made by the State Government under thin Act
shall be laid, as soon as may be after it is made, before each House of the
State Legislature while it is in occasion 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. (1)
The Loka Shikshana Trust (Taking over of Management)
Ordinance, 1981 (Karnataka Ordinance 16 of 1981) 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. By Order and in the name of the Governor of Karnataka, sK.R. Chamayya, Draftsman and Ex-Officio Special Secretary to Government, Department of Law and Parliamentary Affairs.
Preamble - LOKA SHIKSHANA TRUST (TAKING OVER OF MANAGEMENT) ACT, 1982PREAMBLE