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TEA ACT, 1953
29 of 1953
28th May, 1953
STATEMENT OF OBJECTS AND REASONS "The Indian Tea Control Act, 1938, and the Central Tea Board Act 1949 are the existing enactments relating to the tea industry. The object of the former Act is "the control of the export of tea and control of the extension of the cultivation of tea", while that of the latter is "the development of the tea industry under Central control". Since these objects are interrelated, the former being in a sense only ancillary to the latter, it is proposed that there should be a single Act combining the provisions of the two existing enactments, with a view to achieving simplicity and administrative convenience. The Bill seeks to achieve this object. 2. The Bill provides for the constitution of a statutory Board called the Tea Board, to which will be entrusted, besides the functions now assigned to the Indian Tea Licensing Committee and the Central Tea Board under the existing Acts additional functions such as the regulation and control of tea sold by auction or otherwise the registration and licensing of brokers and blenders and quality control. 3. The manner in which various bodies are given representation of the Central Tea Board, under the existing Act, has created difficulties in its implementation, and it is therefore, proposed to make the composition of the Board more flexible by providing that the Central Government shall appoint members to the Board from among persons capable in their opinion of representing the various interests concerned such as growers, exporters, labour, Central and State Governments, principal Chambers of Commerce and Industry, an economist and a scientist. 4. It is also proposed to take power for the Central Government to fix the wholesale and retail prices at which tea may be sold and also to issue directions to the Tea Board so that it may function as an effective instrument of governmental policies." - Gaz. of Ind., 1952. Extra.. Pt. II, section 2. p. 624.
An Act to provide for the control by the Union of the Tea industry, including the control, in pursuance of the International Agreement now fat force, of the cultivation of tea in), and of the export of tea from, India and for that purpose to establish a Tea Board and
2[levy a duty of excise on tea produced in India.] BE it enacted by Parliament as follows:-
CHAPTER 01 PRELIMINARY
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called THE TEA ACT, 1953.
(2) It extends to the whole of India Provided that it shall not apply to the State of Jammu and Kashmir except to the extent to which the provisions of this Act relate to the control of the export of tea from, and the cultivation of tea in, India.
(3) It shall come into force on such date1[as the Central Government may, by notification in the Official Gazette, appoint.
SECTION 02: DECLARATION AS TO EXPEDIENCY OF CONTROL BY THE UNION
It is hereby declared that it is expedient in the public interest that the Union should take under its control the tea industry.
SECTION 03: DEFINITIONS
In this Act, unless the context otherwise requires,
(a) "Board" means the Tea Board constituted under section 4-;
(b) "broker" means a broker of tea;
(c) "cess" means 2[the duty of excise] imposed by section 25--.
(d) "Customs-collector" means a Customs collector as defined in clause (c) of section 3 of the Sea Customs Act, 1878 for the purposes of that Act, or of that Act as applied to the import and export of goods by air or a Collector of Land Customs as defined in clause (c) of section 2 of the Land Customs Act, 1924 as the case may be;
(e) "dealer" means a dealer in tea;
(f) "export" means to take out of India by land, sea or air to any place outside India other than a country or territory notified in this behalf by the Central Government by notification in the Official Gazette:
(g) "export allotment" means the total quantity of tea which may be exported during any one financial year,
(h) "Fund" means the Tea Fund referred to in section 27-
(i) "manufacturer" means a manufacturer of tea;
(j) "member" means a member of the Board,
(k) "owner"-
(i) with reference to a tea estate or garden or a sub-division thereof the possession of which has been transferred by lease, mortgage or otherwise, means the transferee so long as his right to possession subsists; and
(ii) with reference to a tea estate or a garden or a sub-division for which an agent is employed, means the agent if and in so far as, he has been duly authorized by the owner in that behalf;
(l) "prescribed" means prescribed by rules made under this Act,
(m) "standard export figure" means such quantity as the Central Government may, by notification in the Official Gazette, specify pursuant to any international agreement in this behalf.
(n) "tea" means the plant Camellia Sinensis (L) O. Kuntze as well as all varieties of the product known commercially as tea made from the leaves of .the plant Camellia Sinensis (L) 0. Kuntze including green tea;
(o) "tea seed" includes seed, roots, stumps, cuttings, buds, and any living portion of the plant Camellia Sinensis (L) 0. Kuntze which may be used to propagate that plant.
CHAPTER 02: THE TEA BOARD
SECTION 4 Establishment and constitution of the Tea Board
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, specify in this behalf, there shall be established for the purposes of this Act a Board to be celled the Tea Board.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued.
(3) The Board shall consist of a Chairman and such number of other members not exceeding forty as the Central Government may think expedient to be appointed by that Government by notification in the Official Gazette from among persons who are in its opinion capable of representing,-
(a) owners of tea estate and gardens and growers of tea;
(b) persons employed in tea estates and gardens',
(c) manufacturers of tea;
(d) dealers including both exporters and internal traders of tea;
(e) consumers;
(f) Parliament;
(g) the Government of the principal tea-growing States;
(h) such other persons or class of persons, who, in the opinion of the Central Government, ought to be represented on the Board.
3[(3A) It is hereby declared that the office of member of the Board shall not disqualify its holder for being chosen as, or for being a member of either House of Parliament.]
(4) The number of persons to be appointed as members from each of the categories specified in sub-section (3), the term of office of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Board shall be such as may be prescribed.
(5) Any officer of the Central Government when deputed by that Government in this behalf shall have the right to attend meetings of the Board and take part in the proceedings thereof but shall, not be entitled to vote.
OBJECTS AND REASONS "As the Tea Board will work under the general control and supervision of the Central Government, the Select Committee feel that there is no need for the Central Government to be represented on the Board: but it is felt at the same time that the Board should be apprised of the views of the Central Government before taking any decision. Hence the Select committee have deleted item (g) of sub-el. (3) and have provided in new sub-el. (5) that any officer deputed by the Central Government shall be entitled to take part in the proceedings of the Board but shall not be entitled to vote. The Select Committee re-commend that provisions should be made in the rules for deputing officers of the Ministries of Finance, Commerce and Industry and Railways to attend meetings of the Board." S.C.R.
SECTION 05: VACANCIES, ETC., NOT TO INVALIDATE ACTS AND PROCEEDINGS
No act done or proceeding taken by the Board under this Act shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of the Board.
SECTION 06: SALARY AND ALLOWANCES OF CHAIRMAN
The Chairman shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may from time to time be fixed by the Central Government.
SECTION 07: VICE CHAIRMAN
The Board shall elect from among its members a Vice- Chairman who shall exercise such of the powers and discharge such of the duties of the Chairman as may be prescribed or as may be delegated to him by the Chairman.
SECTION 08: EXECUTIVE AND OTHER COMMITTEES
(1) There shall be an Executive Committee of the Board constituted in the manner prescribed.
(2) The Executive Committee shall exercise such of the powers and perform such of the duties of the Board as may be prescribed, or as the Board may delegate to it.
(3) Subject to such control and restrictions as may be prescribed the Board may constitute other Standing Committees or ad hoc Committees for exercising any power or discharging any duty of the Board or for enquiring into or reporting and advising on any matter which the Board may refer to them.
(4) A, Standing Committee shall consist exclusively of members of the Board.
(5) An ad hoc Committee may include persons who are not members of the Board but their number shall not exceed one half of its strength.
SECTION 09: SECRETARY AND STAFF
(1) The Central Government shall appoint-
4[(a) a Deputy Chairman to the Board who shall assist the Chairman in the performance of his duties and exercise such of the powers and perform such of the duties as may be prescribed or as may be delegated to him by the Board or by a Committee constituted by the Board under section 8 -or by the Chairman;
4[(aa) Secretary to the Board who shall exercise such powers and perform such duties as may be prescribed or as may be delegated to him by the Board or the Chairman.
(b) all other officers of the Board drawing 5[a salary exceeding rupees one thousand seven hundred per month.]
(2) Subject to such control and restrictions as may be prescribed, the Board may appoint such other officers and employees as may be necessary for the efficient performance of its functions and pay them such salaries and allowances as it may determine from time to time.
(3) The Chairman, 5[Deputy Chairman, Secretary and other employees] of the Board shall not undertake any work unconnected with their duties under this Act except with the permission of the Central Government.
SECTION 10: FUNCTIONS OF THE BOARD
(1) It shall be the duty of the Board to promote, by such measures as it thinks fit, the development under the control of the Central Government of the tea industry.
(2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to therein may provide for-
(a) regulating the production and extent of cultivation of tea;
(b) improving the quality of tea;
(c) promoting co-operative efforts among growers and manufacturers of tea
(d) undertaking, assisting or encouraging scientific, technological and economic research and maintaining or assisting in the maintenance of demonstration farms and manufacturing stations,
(e) assisting in the control of insects and other pests and diseases affecting tea;
(f) regulating the sale and export of tea;
(g) training in tea testing and fixing, grade standards of tea;
(h) increasing the consumption in India and elsewhere of tea and carrying on propaganda for that purpose;
(i) registering and licensing of manufacturers, brokers, tea waste dealers and persons engaged in the business of blending tea-
(j) improving the marketing of tea in India and elsewhere -
(k) collecting statistics from growers manufacturers, dealers and such other persons as may be prescribed on any matter relating to the tea industry; the publication of statistics so collected or portions thereof or extracts therefrom;
(l) securing better working conditions and the provisions and improvement of amenities and incentives for workers;
(m) such other matters as may be prescribed'.
(3) The Board shall perform its functions under this section in accordance with and subject to such roles as may be made by the Central Government.
SECTION 11: DISSOLUTION OF THE BOARD
(1) The Central Government may, by notification in the Official Gazette, direct that the Board shall be dissolved from such date and for such period as may be specified in the notification.
(2) When the Board is dissolved under the provisions of sub-section (1)-
(a) all members shall, from the date of dissolution, vacate their offices as such members;
(b) all powers and duties of the Board shall, during the period of dissolution, be exercised and performed by such person or persons as the Central Government may appoint in this behalf;
(c) all funds and other property vested in the Board shall, during the period of dissolution, vest in the Central Government; and
(d) as soon as the period of dissolution expires, the Board shall be reconstituted in accordance with the provisions of this Act.
CHAPTER 03: CONTROL OVER THE EXTENSION OF TEA CULTIVATION
SECTION 12: METHOD OF CONTROL OF EXTENSION OF TEA CULTIVATION
(1) No one shall plant tea on any land not planted with tea on the date of commencement of this Act unless permission has been granted to him in writing by or on behalf of the Board.
(2) No tea area shall be replaced by planting tea on area not planted with tea un- less permission has been granted in writing by or on behalf of the Board.
(3) Nothing in this section shall prohibit the infilling or supplying of vacancies on land planted with tea on the date of commencement of this Act or the replanting of tea upon-
(i) land planted with tea on the 31st day of March, 1950, from which original bushes have been uprooted, or
(ii) land planted with tea on the 31st day of March, 1948, from which the original bushes have been uprooted.
SECTION 13: LIMITATIONS TO THE EXTENSION OF TEA CULTIVATION
(1) Subject to the provisions contained in sections 15 and16, the total area of land in respect of which the permission referred to in section 12 may be granted, shall not exceed such area as may be determined by the Board under the general instructions of the Central Government.
(2) The total area of land in any State in respect of which such permission may be granted shall be such as may be determined by the Board: Provided that the Board may vary the total area so determined for any State in order to increase or diminish for another
State the area in respect of which such permission may be granted by an amount corresponding to the extent to which the area in the first mentioned State has been diminished or increased.
(3) The Board shall publish the total area determined for India as well as the total areas determined for the various States by notification in the Official Gazette of the Central Government as soon as may be after the commencement of this Act and shall in like manner publish any subsequent variation of such total areas.
SECTION 14: GRANT OF PERMISSION TO PLANT TEA
(1) Applications for permission to plant tea on any land not planted with tea on the date of commencement of this Act shall be made to the Board and shall contain a clear statement of all special circumstances Justifying the application.
(2) The Board may require an applicant to .supply such information as it thinks necessary to enable the Board to deal with the application.
(3) Subject to such conditions and restrictions as may be prescribed, the Board may by order grant or refuse the permission applied for, or may in like manner grant it in part only or may call for further information from the applicant.
(4) No order by the Board under sub-section (3) shall be called in question by any Court.
SECTION 15: GRANT OF PERMISSION TO PLANT TEA FOR SPECIAL CIRCUMSTANCES
(1) Where any land which was on the 31st day of March 1933, planted with tea (including land planted with tea on the 31st day of March 1931, from which the original bushes had been uprooted and which had not been replanted with tea on the said 31st day of March 1933), or where any land planted with tea after the 31st day of March 1933-
(a) has since become wholly incapable of carrying tea through circumstances due to war, or through subsidence, flood, erosion, earthquake or other irresistible superhuman cause, or
(b) has since been compulsorily acquired under the provisions of the Land Acquisition Act, 1894 , or of any other law for the time being in force and no longer carries tea, or
(c) has since been transferred to the Central or a State Government or to a local authority and no longer carries tea, or
(d) has since been resumed by the lessor under the terms of any lease and no longer carries tea, the owner of the tea estate in which such land is situated may apply to the Board for permission to plant tea on land not planted with tea. Explanation.- Land taken for purposes connected with the prosecution of war on which tea bushes have been allowed to remain for protective purposes though no longer cultivated shall be deemed for the purposes of this section to be incapable of carrying or no longer to carry tea.
(2) Upon such application being made and upon proof to the satisfaction of the Board that the applicant is entitled to the benefit of sub-section (1) the Board may by order grant permission to plant tea on land not planted with tea: Provided that the area of land in respect of which such permission is granted shall be within the same or an adjacent district and shall belong to the same or an adjacent tea estate and shall not exceed in extent the area of the land incapable of carrying tea or compulsorily acquired, transferred or resumed, as the case may be.
(3) All areas of land in respect of which permission to plant tea is granted under this section shall be excluded when computing for the purpose of section 13-the total area of land in respect of which the permission referred to in section 12-may be granted.
(4) If any land falling within the Explanation to sub-section (1) is subsequently restored to the tea estate from which it was subtracted, the owner of the estate shall either uproot the tea planted thereon, or uproot any tea planted by him in pursuance of a permission granted under sub-section (2).
SECTION 16: TEA NURSERIES
(1) The owner of a tea estate may establish nurseries on land not previously planted with tea for the growing of plants intended for infilling or supplying vacancies or for replanting land planted with tea within the area of the estate or for any other purpose approved by the Board.
(2) All areas of land utilised for nurseries in accordance with this section shall be excluded when computing for the purpose of section 13 the total area of land in respect of which the permissions referred to in section 12-may be granted.
CHAPTER 03A: MANAGEMENT OR CONTROL OF TEA UNDERTAKINGS OR TEA UNITS BY THE CENTRAL GOVERNMENT IN CERTAIN CIRCUMSTANCES
SECTION 16A: DEFINITIONS
(1) In this Chapter, unless the context otherwise requires,-
(a) "authorised person" means the person or body of persons authorised, or appointed, by the Central Government under this Act to take over the management of any tea undertaking or tea unit;
(b) "company" means a company within the meaning of section 3 of the Companies Act, 1956-;
(c) "district average yield" means the average yield of tea in the district in which one or more tea units are located, as published by the Board-
(d) "notified order" means an order notified in the Official Gazette-
(e) "tea undertaking" means an undertaking engaged in the production or manufacture, or both, of tea through one or more tea units-
(f) "tea unit" means a tea estate or garden including a sub division thereof which has a distinct entity for which accounts are kept and has a factory of its own for the production and manufacture of tea.
(2) References to an industrial undertaking in such of the provisions of the Industries (Development and Regulation) Act, 1951, as apply to a tea undertaking or tea unit by virtue of the provisions of this Chapter, shall be construed as references to a tea undertaking or tea unit, as the case may be, and references in the Act aforesaid to any provision of that Act, as applicable to a tea undertaking or tea unit, in relation to which a corresponding provision has been made in this Act, shall be construed as references to such corresponding provision.
SECTION 16B: POWER TO CAUSE INVESTIGATION TO BE MADE IN RELATION TO A TEA UNDERTAKING OR TEA UNIT
(1) Where the Central Government is of opinion m respect of a tea undertaking or a tea unit that-
(a) the tea undertaking or, as the case may be, the tea unit, has made losses in three out of five years immediately preceding the year in which such opinion is formed; or
(b) the average yield of the tea undertaking, or, as the case may be, the tea unit, during three years out of five years immediately preceding the year in which such opinion is formed, has been lower than the district average yield by twenty-five per cent., or more; or
(c) the persons owning the tea undertaking, or, as the case may be, the tea unit, have habitually made default in the payment of wages, or provident fund dues of workers and other employees, or rent of the land, or duties of excise, or such other dues as they are under an obligation to pay under any law for the time being in force; or
(d) the tea undertaking, or, as the case may be, the tea unit, is being managed in a manner highly detrimental to the tea industry or to public interest, the Central Government may make, or cause to be made, a full and complete investigation into the affairs of the tea undertaking or, as the case may be, the tea unit, by such person or body of persons as it may appoint for the purpose.
(2) Where a company owning a tea undertaking is being wound up by or under the supervision of the Court and the business of such company is not being continued, the Central Government may, if it is of opinion that it is necessary, in the interests of the general public, and, in particular, in the interest of production, supply or distribution of tea, to investigate into the possibility of running or restarting the tea undertaking make an application to the Court praying for permission to make, or cause to be made, an investigation into such possibility by such person or body of persons as that Government may appoint for the purpose; and, where such an application is made, the Court shall, notwithstanding anything contained in the Companies Act, 1956-, or in any other law for the time being m force, grant the permission prayed for.
(3) The person or body of persons appointed to make any investigation under sub-section (1) or as the case may be, sub-section (2), shall have the same powers as are specified in section 18 of the Industries (Development and Regulation) Act, 1951.],
SECTION 16C: POWER OF CENTRAL GOVERNMENT ON COMPLETION OF INVESTIGATION
(1) If, after making or causing to be made any such investigation as is referred to in sub- section (1) of section 16B-, the Central Government is satisfied that action under this section is desirable, it may issue such directions to the tea undertaking Or tea unit concerned, as may be appropriate in the circumstances, for all or any of the following purposes, namely:-
(a) regulating the production of tea by the tea undertaking or, as the case may be, tea unit and fixing the standards of production;
(b) requiring the tea undertaking or, as the case may be, tea unit to take such steps as the Central Government considers necessary to stimulate the production manufacture or plantation, of tea;
(c) prohibiting the tea undertaking or, as the case may be, tea unit from resorting to any act or practice which might reduce its production, capacity or economic value;
(d) controlling the prices, or regulating the distribution, of tea produced or manufactured by the tea undertaking or, as the case may be, tea unit.
(2) Where a case relating to any tea undertaking or tea unit is under investigation, the Central Government may issue, at any time, any direction of the nature referred to in sub-section (1) to the tea undertaking or the tea unit concerned and any such direction shall have effect until it is varied or revoked by the Central Government.]
SECTION 16D: POWER OF CENTRAL GOVERNMENT TO ASSUME MANAGEMENT OR CONTROL OF TEA UNDERTAKING OR TEA UNIT IN CERTAIN CASES
(1) If the Central Government is of opinion that-
(a) a tea undertaking or tea unit, to which directions have been issued in pursuance of section 16C has failed to comply with such, directions, or the tea undertaking or, as the case may be, the tea unit, has made losses in three out of five years immediately preceding the year in which such opinion is formed; or
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