The Bihar State Aid to Industries Rules, 1959

{
    "id": 15879,
    "slug": "the-bihar-state-aid-to-industries-rules-1959",
    "title": "The Bihar State Aid to Industries Rules, 1959",
    "short_title": "The Bihar State Aid to Industries Rules, 1959",
    "act_number": "Published vide Notification No. 1598 2-CI. dated t",
    "act_year": 1959,
    "act_type": "STATE",
    "location": "Bihar",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "The Bihar State Aid to Industries Rules, 1959",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definition.",
            "chapter": null,
            "content": "(a) \"the Act\" means the Bihar State Aid to Industries Act, 1956;\n(b) \"Chairman\" means the Chairman of the Board of Industries;\n(c) \"form\" means a form in the Schedule to these rules;\n(d) \"section\" means a section of the Act; and\n(e) other words and expression shall have the same meaning as are assigned to them in the Act.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "4",
            "title": "3. Delegation of the power under Section 4 to give State Aid.",
            "chapter": null,
            "content": "(a) No loan for a period longer than ten years shall be granted without the special sanction of the State Government;\n(b) The rate of interest shall be fixed in accordance with the instructions of the State Government issued in this regard from time to time; and\n(c) Only such security shall be taken as is laid down in the Act and these rules by a mortgage of the properties including collateral security offered in cases when such security is required.]",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "5",
            "title": "4. Manner of election of members of the Board of Industries under Clauses (a), (b) and (c) of sub-section (1) of Section 5.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Conduct of proceedings of the Board of Industries.",
            "chapter": null,
            "content": "(1) (a) The Chairman may, whenever he thinks fit, and shall upon the written request of not less than five members, call a special meeting of the Board.\n(b) At least ten days' notice of all meetings shall be given to every member provided that an accidental failure of service of notice on any member shall not invalidate the proceedings of any meeting.\n(2) The notice shall set forth clearly and fully the business to be transacted at the meeting and no business other than that so set forth shall be transacted except with the permission of the Chairman of the meeting.\n(3) One-third of the total number of members of the Board shall form the quorum and if at any meeting of the Board there is no such quorum, the Chairman of the meeting or in his absence, such member as shall be elected to preside, shall adjourn the meeting until such other day or time as he thinks fit. At such adjourned meeting any number of members present not being less than three exclusive of the Chairman of the meeting shall form a quorum.\n(4) Every meeting shall be presided over by the Chairman, if present, and during his absence by one of the members present as may be elected by the other members.\n(5) All questions in the meeting shall be decided by a majority of votes of the members present, the Chairman of the meeting having the second or casting vote in all cases of equality of votes.\n(6) Minutes shall be kept of the proceedings at each meeting a book to be provided for the purpose which shall be signed as soon as practicable by the Chairman of such meeting.\n(7) If there is no sufficient business for holding a meeting, the Chairman of the meeting may in his discretion circulate any matter for the opinion of the members. The majority opinion thus ascertained shall be deemed to be the decision of the Board.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Form of application under Section 6.",
            "chapter": null,
            "content": "(b) The enquiry report contemplated by sub-section (3) of Section 6 shall be submitted in Form F.\n(c) Every application for State aid shall be accompanied by a-scheme of the industry for which State aid is required in Form G.\n(d) Parties to whom State aid is given shall execute mortgage bond, personal bond, personal bond with surety and agreement in Forms H, I, J and K, respectively,",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "6",
            "title": "7. Publication of application under Section 6 (2).",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Disposal of objections.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Nature of security to be taken under Sections 7 and 8.",
            "chapter": null,
            "content": "(a) immovable properties;\n(b) machineries of permanent or semi-permanent nature whose life is not less than the period of the loan;\n(c) such bonds as may be considered suitable by Government for security.\n(ii) No expenditure shall be incurred on any item without the prior approval of the Director of Industries unless it has already been approved by the State Government.\n(iii) All disbursements out of the loan shall be made under the joint signature of the nominee of the State Government and the loanee.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "7",
            "title": "10. Valuation of assets under Section 7.",
            "chapter": null,
            "content": "(i) land and building shall be valued at their market price;\n(ii) machineries shall be valued at their cost price less such allowance for depreciation as the Director may consider reasonable in each case; and\n(iii) the value of Government securities shall be determined by the State Government from time to time.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "9",
            "title": "11. Inspections under Section 9.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "9",
            "title": "12. Form of accounts under Section 9.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "11",
            "title": "13. Condition of guarantee of a cash credit, overdraft or fixed advance with a bank under Section 11.",
            "chapter": null,
            "content": "[13A. Delegation of the power under Section 12 (2) to terminate State Aid.\n[(a) Project Executive Officer, Community Project Officer (Industrial), Sub-Divisional Magistrates, Block Development Officers and District Industries Officers to the District Magistrates;\n(b) Joint Director of Industries, Deputy Director of Industries, Additional District Magistrates, District Development Officers, Special Officers, Development Offices and Officers-in-Charge of Ancillary Area to the Director of Industries; and\n(c) Secretaries to Government, Director of Industries, Additional Director of Industries, Bihar State Financial Corporation, District Magistrate and Managing Director of Industrial Area Development Authority to the State Government in the Department of Industries and Technics Education.]",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "15",
            "title": "14. Discontinuance of the State aid under Section 15 (2).",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "16",
            "title": "15. Distribution of profit under Section 16.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "20",
            "title": "16. The percentage of costs to be deposited under Section 20.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "21",
            "title": "17. Additional particulars to be specified in the order referred to in Section 21.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "22",
            "title": "18. Form of metal plate under clause (e) of Section 22.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        },
        {
            "number": "24",
            "title": "19. Proportion of interest payable under Section 24.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. Manner of termination of hiring by hirer.",
            "chapter": null,
            "content": "Schedule\nForm A\nForm A\n[ See Rule 6]\nForm of application for State aid by an individual or firm not being a company within the meaning of the [Indian Companies Act, 1913]",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "1",
            "title": "1. Name, parentage and residence or, in a case of a firm, style and principal place of business, of the applicant.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "2",
            "title": "2. Section of Act under which State aid is required.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "3",
            "title": "3. Amount of State aid required.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "4",
            "title": "4. Object for which the State aid is required.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "5",
            "title": "5. Manner in which it is proposed to repay the State aid [in the case of a loan-",
            "chapter": null,
            "content": "(a) the number of instalments by which it is proposed to repay;\n(b) date on which it is proposed that the first instalment should be due;\n(c) the amount of each instalment, should be stated].",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "6",
            "title": "6. Nature of security offered.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "7",
            "title": "7. Names, parentage, caste and residence of sureties, if any.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "8",
            "title": "8. Nature of security of the sureties.",
            "chapter": null,
            "content": "Signature Date.\nSignature of applicant. Date.\nForm B\nForm B\n[ See Rule 6]\nForm of application for State aid by a Company\n(a) the number of instalments by which it is proposed to repay;\n(b) date on which it is proposed that the first instalment should be due;\n(c) the amount of each instalment; should be stated],\nSignature of officer empowered to sign on behalf of the Company.\nForm C\nForm C\n[ See Rule 2]\nTrading and profit and loss account for the year ended\nDebtor\nDebtor\nCreditor\nCreditor\nStock in hand at beginning of year.\nWork in progress at beginning of\n\t\t\t\tyear.\nPurchase less returns.\nFreight in purchase.\nManufacturing wages.\nFactory expenses.\nBalance being gross profit.\nCarried down.\nSalaries and wages not directly\n\t\t\t\tdebitable to factory.\nRent, rate and taxes.\nCarriage outwards.\nDiscount allowed.\nOffice and general expenses.\nRepairs.\nBad debts.\nReserve.\nDepreciation.\nInterest on loan.\nBalance being profit.\nSales less returns.\nStock in hand at the end of year.\nWork in progress at the end of year\nGross profit brought down.\nOther revenue receipts.\nBalance sheet as at\nBalance sheet as at\nCapital and Liabilities\nCapital and Liabilities\nProperty and Assets\nProperty and Assets\nCapital showing details of shares,\n\t\t\t\tif any\nDebts and liabilities showing-\n(1) amounts of\n\t\t\t\tloans on mortgage.\n(2) amounts of\n\t\t\t\tdebts distinguishing-\n(a) debts for\n\t\t\t\twhich acceptance have been given;\n(b) debts for\n\t\t\t\tsupplies;\n(c) debts for\n\t\t\t\tlaw expenses;\n(d) debts for\n\t\t\t\tinterest on loans;\n(e) other\n\t\t\t\tdebts.\nReserve fund\nProfit and loss\nContingent liabilities:\nClaims not\n\t\t\t\tacknowledged.\nMoney for which concern is\n\t\t\t\tcontingently liable.\nProperty showing-\n(a) immovable\n\t\t\t\tproperty, distinguishing land and building.\n(b) movable\n\t\t\t\tproperty, distinguishing stock in trade and plant.\nCost less depreciation to be shown\nDebts owing to concern showing-\n(a) debts\n\t\t\t\tconsidered to be good and secured.\n(b) debts\n\t\t\t\tconsidered good and unsecured.\n(c) debts\n\t\t\t\tconsidered doubtful or bad.\nDebts due from a partner or\n\t\t\t\temployee to be separately stated.\nCash and investment showing-\n(a) the nature\n\t\t\t\tof each investment and rate of interest.\n(b) amount of cash and where\n\t\t\t\tlodged.\nForm D\nForm D\n[ See Rule 6]\nForm of application for the supply of machinery on the hire-purchase system by an individual or firm not being a company within the meaning of [Indian Companies Act, 1913]\nSignature of applicant\nForm E\nForm E\n[ See Rule 6]\nForm of application for the supply of machinery on the hire-purchase system by a company\nSignature of officer empowered to sign on behalf of the Company.\nForm F\nForm F\n[ See Rule 6]\nForm of Enquiry Report\n(b) Reference to Serial No. of application.\n(c) Whether the applicant is a member of Scheduled Castes, Scheduled Tribes, Backward Classes; if so, the name of the caste to which he belongs should be mentioned.\n(b) Dates of establishment.\n(c) Capital outlay.\n(d) Whether any assistance was granted before; if so, when, and how much.\n(e) Number of employees engaged at present.\n(f) Whether the grant of State aid will result in increased employment and, if so, to what extent.\n(b) Whether the security offered is free from all encumbrances; if not, what is the total amount of existing encumbrances.\n(c) If the assets of the industry are proposed to be offered as security, please mention the valuation and description of the assets of the industry including that created by the grant of State aid.\n(d) Applicant's share and interest in the collateral security offered.\n(e) Names of the sureties, if any, their parentage, residence and full address.\n(f) Nature of security offered by the sureties.\n(g) Whether the sureties are in any way related to the applicant.\n(b) Place where the applicant proposes to set up the above machinery.\n(c) Whether the applicant is agreeable to deposit 20 per cent of the cost of the machinery with the Director of Industries, Bihar.\nSignature and designation of the Enquiring Officer.\nForm G\nForm G\n[ See Rule 6]\nForm of Scheme of Industry",
            "footnote": "",
            "is_definition": false,
            "sort_order": 27
        },
        {
            "number": "1",
            "title": "1. Non-recurring-",
            "chapter": null,
            "content": "Tools, equipments and furniture.\n(a)\nIn stock\nDescription\nQuantity Valuation\n1. 2. 3. 4. etc.\n(b)\nTo be purchased\nDescription\nQuantity Valuation\n1. 2. 3. 4. etc.\nTotal Non-recurring Rs.\n(a) Raw materials proposed to be consumed quarterly (three months).\nDescription\nQuantity (probable consumption during three months)\nRate\nTotal cost\n1. 2. 3. 4. etc.\n(b) Wages of Workers (for three months).\nNo. of workers with designation\nRate of wages for each\nEstimated cost for three months\n1. 2. 3. 4. etc.\n(c) House rent, if any, for three months.\n(d) Miscellaneous contingencies, viz., packing, coolie charge, stamps, stationery and other unforeseen charges.\nEstimated cost for (three months).\nTotal recurring Rs.\nSignature of the applicant.\nDate\nForm of Certificate\nSignature of two respectable persons\nForm H\nForm H\n[ See Rule 6]\n(Annexure 1)\nForm of Simple Mortgage Bond\nForm I\nForm I\n[ See Rule 6]\nForm of Personal Bond under Section 7 (2) of the Act\nIn presence of\nSigned\n(i) Witness\nDate\n(ii) Witness\nForm J\nForm J\n[ See Rule 6]\nForm of Personal Bond with Surety under Section 7 (2) (a) of the Act\n(1) Borrower\n(2) Surety\n(3) Surety\n(1) Borrower\n(2) Surety\n(3) Surety\n(1)\n(2)\nForm-K\nForm-K\n[ See Rule 6]\nForm of Agreement",
            "footnote": "",
            "is_definition": false,
            "sort_order": 28
        },
        {
            "number": "1",
            "title": "1. The owner shall let and the hirer shall hire the........(hereinafter called the machine) and more particularly described (in the first schedule hereto) subject to the terms and conditions hereinafter mentioned.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 29
        },
        {
            "number": "2",
            "title": "2. Immediately upon the execution of these presents the hirer shall pay to the owner the sum of Rs (Rupees,) as.........................(being 20 per cent of the total cost of the machine) and shall further pay to the owner, during the continuance of the hiring, the sum of Rs....................(Rupees............) being the rent in ten equal instalments as mentioned in the 1st column of the second schedule hereto on the dates shown in the second column thereof, whether the same should have been",
            "chapter": null,
            "content": "3. (a) The hirer shall at his own expenses get (the machine insured with a reliable Fire Insurance Co. for a sum of Rs..............(Rupees.........) and the same shall be renewed regularly every year till the hiring is terminated under the terms embodied in this agreement.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 30
        },
        {
            "number": "4",
            "title": "4. The hirer shall at his own expense keep the machine in good and complete repair and condition and shall also be responsible for any loss, damage or destruction of the machine (including loss or damage by fire).",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 31
        },
        {
            "number": "5",
            "title": "5. The hirer shall permit the owner or his agents throughout the term of the hiring to enter upon the premises where the machine may be and inspect the same and shall keep the owner informed from time to time of the address at which the machine shall be kept.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 32
        },
        {
            "number": "6",
            "title": "6. The hirer shall pay all taxes, rates, rents and outgoing of every description, either existing or future for the time being payable in respect of the premises where the machine shall be kept and shall on no account cause or permit the machine to be seized under any distress for rent or otherwise or the execution of any other legal process.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 33
        },
        {
            "number": "7",
            "title": "7. The hirer shall not, during the continuance of the hiring, transfer by mortgage or otherwise the machine. Nor shall he on any account during the continuance of the hiring part with the possession or control of the machine or assign the benefits under these presents or commit or suffer any act of insolvency.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 34
        },
        {
            "number": "8",
            "title": "8. The machine shall become the property of the hirer as soon as he has paid all the rents shown in the first column of the second schedule hereto on the dates mentioned in the second column thereof; but until such payment the machine shall be and remain the sole property of the owner and the hirer shall be and remain a mere bailee thereof.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 35
        },
        {
            "number": "9",
            "title": "9. If the hirer makes any default or breach in any of the terms and conditions of these presents, the owner shall be entitled without notice and without prejudice to his right hereunder to determine the hiring and shall also be entitled to enter upon the premises where the machine may be and to seize and take possession of and recover the machine at the expense of the hirer.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 36
        },
        {
            "number": "9",
            "title": "10. Upon the determination of the hiring under Clause 9 hereof the hirer shall pay the owner all arrears of rent or damages or other sums payable under the terms and conditions of these presents.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 37
        },
        {
            "number": "11",
            "title": "11. No indulgence, delay or relaxation on the part of the owner enforcing the terms and conditions of these presents shall constitute a notice or waiver of any breach of the terms and conditions thereof, nor shall it in any way prejudice or affect the right of the owner and under these presents.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 38
        },
        {
            "number": "1",
            "title": "1. Amount of rent payable.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 39
        },
        {
            "number": "2",
            "title": "2. Date of payment of rent.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 40
        }
    ],
    "metadata": {
        "Act ID": "bh015",
        "Act Number": "Published vide Notification No. 1598 2-CI. dated the 14th December, 1959",
        "Enactment Date": "",
        "Act Year": "1959",
        "Short Title": "The Bihar State Aid to Industries Rules, 1959",
        "Type": "STATE",
        "Location": "Bihar"
    },
    "updated_at": "2026-09-29 21:55:19"
}