Coffee Act PDF

THE COFFEE ACT
CONTENTS
Sections
1. Short Title, extent and duration

2. S9 (Declaration as to expediency of Union Control)
3. Definition
4. Constitution of the Board
5. Incorporation of the Board
6. Vesting of Property in the Board
6a. Consultation with the Board
7. Committee, Staff and Agents
8. Salary and Allowances of the Chairman
8a. Vice Chairman
9. Chief Coffee Marketing Officer, Secretary and other staff
10. Dissolution of the Board
11. Duty of Customs
12. Duty of Excise
13. Payment of Proceeds of Duties of the Board and manner of realisation by the
Board
14. Registration of Owners of Coffee Estates
15. Power of State Government to make rules
16. Fixation of prices for sale of coffee
17. Sale of Coffee in excess of internal sale quota.
18. Sale of Coffee – how made
19. O 12
20. Export of Coffee
21. Re-import of Coffee exported from India.
22. Internal Sale Quota
23. Returns to be made by registered owner
24. Licences for sale uncured coffee
25. Surplus coffee and surplus pool
26. Sale of Coffee by the Board
27. Coffee to be cured in licenced curing establishments
28. Licencing of Curing Establishment
29. Information to be supplied to the Board in connection with curing
30. Separate funds to be maintained by the Board
31. General Fund
32. Pool Fund
32a. O.8
33. Power to borrow
Sections
34. Payments to Registered Owners
35. Failure to register
36. Contravention of Section 16,17, 18 and 19
37. Unlicenced curing establishment
37a. Contravention of Section 23(1)
38. False Returns
38a. Contravention of Section 25
38b. Powers to seize coffee withheld from inclusion in surplus pool
39. Obstruction
1.9
39a. (Offences by Companies)
40. Cognizance of offence
41. O.12
42. Control by the Central Government
43. Appeals to the Central Government
44. Inspection of Records
45. Accounts of the Board
46. Inspection of Records of the Board and obtaining of copies
47. Contracts
47a. Bar of the legal proceedings
48. Power of the Central Government to make rules
49. (Repeal of the Indian Coffee Cess Act, 1935)
50. Repeal and Savings
1.9
(Validation of Certain Acts and Indemnity in respect thereof)
Note: Sub-Section 3 of section 1 of the Coffee Market Expansion Act (VII of 1942)
reads as under:
“It (the Act) shall ceases to be in force at the end of twelve months commencing on the
1st day of July subsequent to the termination of the present hostilities”.
The Act should have therefore ceased to be in force on 1st July 1947.
But the Coffee Market Expansion (Amendment) Act IV of 1947 has placed the Coffee
Market Expansion Act (VII of 1942) on a permanent basis by having the above Sub-
Section omitted.
THE COFFEE RULES : 1955
CONTENTS
Rule
Chapter I – Preliminary
1. Short Title
2. Definitions
Chapter II – Board and its Constitution
3. Constitution of the Board and the manner of filling vacancies

4. Term of Office
5. Membership Roll
6. Change of Address
7. Registration
8. Removal from the Board
9. Absence from India
10. Vice Chairman
Chapter III – Procedure – Board and Committees
11. Minimum number of meetings of the Board

12. Power to call Board meetings
13. Quorum
14. Presiding over Board meetings
15. Agenda
16. Business by circulation
17. Voting
18. Appointment of Committees
19. Power to call Committee meetings
20. Quorum
21. Absence from meetings of a Committee
22. Filling of casual vacancies
23. Presiding over Committee meetings
24. Agenda
25. Business by circulation
26. Voting
27. Record of business
28. Travelling and other allowances to members of the Board and its Committees
29. Revision
Rule
Chapter IV – The Board and its Establishment
30 Salaries and allowances

31 Board’s establishment
31A Pension-Cum-gratuity benefits to employees of the Board
Chapter V – Finance and Accounts of the Board
32 Power to incur expenditure

33 Budget Estimate
34 Accounts of the Board
35 Deposit of Funds of the Board in Banks and the Investment of
Such Funds
36 Contracts
36A Financial transactions in general
Chapter VI – Powers of the Board and its Chairman
37 Registration on delegation of powers

38 Borrowing Powers
39 Powers of the Chairman
Chapter VII – Marketing and Licensing
40 Purchasing and selling coffee by the Board in the internal market

41 Appointment of Agents
42 Remuneration to Agents
43 Licence for sale of uncured coffee from an estate
44 Export of coffee
45 Licensing of curing establishments
Chapter VIII – Miscellaneous
46. Returns from Registered Estates

47. Inspection of Record by Growers
47A Inspection of Records by Dealers
48 Re-delegation of powers
The First Schedule From A to I
---------
THE COFFEE ACT
ACT NO.VII OF 1942
(PASSED BY INDIAN LEGISLATURE)
(Received the assent of the Governor-General
on the 2nd March 1942)
--
An Act. (to provide for the development under the

Control of the Union, of the coffee industry:)
WHEREAS it is expedient (to provide for the

Development under the control of the Union, of the
Coffee industry: )
It is hereby enacted as follows:-
1. (1) This Act may be called the Short title

Coffee Act 1942. Extent and
(2) It extends to the whole (India) (except the duration
State of Jammu and Kashmir.)
(3) [ ]
Note:- Item 1 (2) of the Coffee (Amendment) Act, 1961

Reads as under: -
“It (the Amendment Act 1961) shall come into force on such
date as the Central Government may, by notification, in the
Official Gazette, appoint”.
Accordingly the following notification, was published in the

Gazette of India Extraordinary, Sub-Section (I)-Part II-
Section 3, dated 19th April 1962, by the Government of India
in the Ministry of Commerce and Industry, New Delhi.
NOTIFICATION
Coffee Control
G.S.R. - In exercise of the powers conferred by Sub-Section

(2) of Section 1 of the Coffee (Amendment) Act, 1961 (48 of
1961) the Central Government hereby appoints the 19th April
1962 as the date on which the said Act shall come into force.
“[2(3) Plant (B) 62}”
(Declara- 2. [It is hereby declared that it is expedient in the public
tion as to interest that the Union Should take under its control the coffee
expediency industry]
of Union
Control) 3. In this Act, unless there is anything repugnant in the
Subject context, -
(a) “the Board” means the [ ] Coffee Board

constituted under Section 4;
[(aa) “Chairman” means the Chairman of the Board;]
(b) “Coffee” means the commodity derived from the

fruit of rubiaceous plant known by that name, and
includes raw coffee, cured coffee, uncured coffee,
roasted coffee and prepared coffee;
(c) “Collector” means a [Collector of Customs as VII of 1942

defined in Clause (8) of Section (2) of the Customs 52 of 1962
Act, 1962,] or a Collector or Land Customs as
Defined in Clause (c ) of Section 2 of the Land
Customs Act, 1924, as the case may be; XIX of 1924
(d) “Curing means the application to raw coffee of

mechanical process other than pulping for the
purpose of preparing it for marketing;
(e) “Curing establishment” means any place to

which raw coffee is sent by a registered owner for
curing, and includes any estate which the Board
may declare to be a curing establishment for the
purpose of this Act:
[(ee) “dealer” means a person carrying on the business

of selling coffee, whether whole-sale or by retail;]
(f) “estate” means an area administered as one unit

which contains land planted with coffee plants;
[ (ff) “India” means territory of India excluding the State

of Jammu and Kashmir ;]
(g) “Indian Coffee Cess Committee,” means the Indian

Coffee Cess Committee constituted under the
Indian Coffee Cess Act, 1935; XIV of 1935
(h) [“Free sale quota” means that portion, stated in
terms bulk or weight, of the whole of the coffee
produced by the estate in the year, which a
registered estate is permitted under this Act
to sell;]
(i) “Owner” in relation to any land planted with coffee

plants, includes –
(1) any agent of the owner, and
(2) a mortgagee, lessee or other person in

actual possession of the land;]
(j) “Prescribed” means prescribed by rules made under

this act;
(k) “registered estate” means an estate in respect of

which an owner is registered under sub-section (1)
of section 14, and includes also any estate in respect
of which an owner if required to be registered under
the provisions of that Sub-Section,”
(l) “registered owner” means an owner of a

registered estate who has been or is required
to be registered under sub-section (1) of
section 14;
1
(ll) [ ]
(m) “Surplus pool” means the stock of coffee accumulated

by the Board out of the amounts delivered to the Board
under section 25;
[(n) “Year” means the period of twelve months beginning

with the first day of July and ending with the thirtieth
day of June next following.]
Constitution 4.(1) The Board constituted by the name of the Indian Coffee
of the Board Market Expansion Board under Section 4 of the Indian Coffee
Market Expansion Ordinance, 1940, shall be the 3[Coffee Board]
for the purpose of this Act. XII of 1939
[(2) The Board shall consists of:-
(a) a Chairman to be appointed by the Central Government

by notification in the Official Gazette;
(b) three members of Parliament of whom two shall be elected

by the House of the People and one by the Council of States:
and
(c) such number of other members not exceeding twenty nine

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:-
(i) Governments of the Principal Coffee growing states;

(ii) Coffee-growing industry;
(iii) Coffee trade interests;
(iv) Curing establishment;
(v) Interests of labour;
(vi) Interests of consumers; and
(vii) Such other interests as in the opinion of the Central
Government, ought to be represented on the Board.
(2A) The number of persons to be appointed as members

from each of the categories specified in Clause (c) of
Sub-Section (2), 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.]
(2B) Any officer of the Central Government when

deputed by that Government in this behalf shall have the
right to attend meeting of the Board and take part in the
proceeding there of but shall not be entitled to vote.
1
(3) [ ]
[(4) No act done by the Board shall be questioned

on the ground merely of the existence of any vacancy in,
or any defect in the constitution of the Board]
[(5) 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.]
Incorporation 5. The Board shall be a body corporate by the name of the
1
of the Board [ ] Coffee Board having perpetual succession and a common
seal, with power to acquire and hold property, both movable and
immovable and to contract, and shall by the said name sue and
be sued.
Vesting of 6. So long as this Act remains in force all property, movable

Property in or immovable, of or belonging to the Indian Coffee Cess Committee
the Board shall vest in the Board and all debts and liabilities of the said
Committee shall be transferred to the Board, and the officers and
Servants of the said Committee shall be officers and servants on
the staff of the Board and the said Committee shall be suspended.
Consultation 6(A) Before taking any action touching the affairs of the Board
with the Board under this Act, the Central Government shall ordinarily consult the
the Board:
Provided that no action taken by the Central Government

shall be invalid or called in question merely on the ground that the
action was taken without such consultation.
7. (1) [ ]
Committee (2) The Board may appoint such Committee for such purposes
Staff and and may employ such staff as it thinks necessary for the efficient
agents discharge of its functions under the Act.
(3) The Board may authorise agents to discharge on its behalf,

its functions in relation to the marketing, storing and curing of
coffee.
Salary and (8) The Chairman shall be entitled to such salary and allowances
allowances of and such conditions of service in respect of leave, Pension, Provident
Chairman fund and other matters as may, from time to time, be fixed by the
Central Government.
Vice Chairman 8. A. The Board shall elect from amongst its members a
Vice Chairman who shall exercise such of the powers and perform
such of the duties of the chairman as may be prescribed or as may be
delegated to him by the Chairman.
Chief Coffee [9. (1) The Central Government shall appoint an officer to be
Marketing called the Chief Coffee Marketing Officer and a Secretary to the
Officer, Board and may appoint a Deputy Secretary to the Board and such
Secretary number of Marketing Officers as may be necessary, to exercise
and other such powers and to perform such duties under the direction of the
Staff Board as may be prescribed.
(2) The Officers appointed under this Section shall be entitled

to such salaries 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.
Dissolution 10. When the Board is dissolved by reason of this Act having
of the Board ceased to be in force, the unexpended balance of all money
received by the Board under the Coffee Market Expansion XII of 1948
Ordinance, 1940, or under this Act except money in the pool
fund shall be disposed off in such manner as the Central
Government may direct. The Central Government shall disburse
the money in the pool fund in the same manner as the Board
would have done had it continued to exist.
Duties and Customs and of Excise
11. A Duty of Customs shall be levied on the coffee produced

in India and exported from 1 [India] 2 [at such rate not exceeding
Rupees fifty per quintal as may be fixed by the Central Government
by notification in the Official Gazette]*
12. [ ]
*The following notifications 1 and 2 were issued by the

Government of India, Ministry of Commerce, New Delhi on the 30th
December 1977.
NOTIFICATIONS
(Coffee Control)
1. S.O. In exercise of powers conferred by Section II of the Coffee Act

1942 (7 of 1942), and in suppression of the notification of the
Government of India in the Ministry of Commerce No.G S R.513 (E)
dated the 1st December 1973, the Central Government hereby fixes with
effect from 16th December, 1977, rupees eleven paise eighty per quintal
as the rate of duty of customs, on coffee under the said Section 11.
(F.No.3/6/76-Plant (B)
2. S.O. In exercise of the powers conferred by Section 12 of the Coffee

Act, 1942 (7 of 1942) and in supersession of the notification of the
Government of India in the Ministry of Commerce G.S.R. 514 (E)
dated the 1st December, 1973, the Central Government hereby fixes
with effect from 16th December 1977 rupees eleven and paise eighty
per quintal as the rate of duty of excise on coffee under the said
Section 12.
(E. No.3/6/76-Plant (B)
Payments of 13. [“(1). The proceeds of the Duty of Customs levied under this
Proceeds of Act, (all of which shall form part of the Consolidated Fund of India),
Duties to the reduced by the cost of collection as determined by the Central
Board. Government, shall, if Parliament by appropriation made by law in this
behalf so provides, be paid to the Board for being utilised for the
purposes of this Act.
52 of 1962 (2) The provisions of the Customs Act, 1962 and the rules and
regulations made thereunder, shall, as far as may be, apply in relation
to :-
(a) the refund of the duty of customs where coffee

is exported and subsequently imported into
India; and
(b) the export, without payment of the duty of customs, of

coffee which is subsequently to be imported into India”]
The following notification was issued by the Government of India,
Ministry of Commerce, New Delhi, on 15th May 1986.
S.O 261(E) in exercise of the power contained in Sub-Section I of

the Coffee (Amendment) Act, 1985, the Central Government hereby
specifies the 15th May, 1986 as the date on which the provisions of
the Coffee (Amendment) Act, 1935 (No.48 of 1985) shall come in
force.
[F.No.13/27/82 Plant (B)]
*The following notification 1 and 2 were issued by the Government

of India, Ministry of Commerce, New Delhi, on the 28th December 1987.
S.O. 1122(E) – In exercise of the powers conferred by Section 11 of the

Coffee Act, 7 of 1942), and in supersession of the Notification of the
Government of India in the Ministry of Commerce No.S. O. 835 (E)
dated the 13th December 1977, the Central Government hereby fixes
with effect from the date of publication of this Notification; rupees
twenty five per quintal as the rate of Duty of excise on coffee under
the said Section 12.
(F. No. 13/27/82 – Plant (B)]

Registration
Registration 14 [(1) Every owner of land planted with coffee plants, whether
of owners of such land is comprised in one estate or in more than one estate and
coffee whether it is situated wholly or only partly in India, shall, before the
estates expiration of one month from the date on which he first became owner
of such estate or estates apply to the registering officer appointed in
this behalf by the State Government to be registered by an owner in
respect of each estate owned by him; and any registration made before
the commencement of the Coffee (Amendment) Act, 1961, shall be
deemed to have been made under the Sub-Section.
(2) [ ]
(3 ) A registration once made shall continue in force until it is

cancelled by the registering officer.
(4) [ ]
Power of 15. (1) The [ State ] Government may by notification in the

State Official Gazette makes rules to carry into effect the provisions of
Government Section 14.
to make rules
(2) Without prejudice the generality of the foregoing power,

such rules may prescribe the form of the application for
registration and for cancellation of registration, the fee
payable on such applications, the particulars to be included in such
applications, the procedure to be followed in granting and
cancelling registration, the registers to be kept by registering
officers, and the supply by registering officers of information
of the Board.
Control of Sale, Export & Re-Import of Coffee
Fixation of 16. [(1) The Central Government may, [ ] by

Prices for sale notification in the Official Gazette, fix the price or prices
of coffee at which coffee may be sold wholesale or retail in the
Indian market.
(2) No registered owner or licensed curer or dealer

shall sell coffee wholesale or retail in the Indian market
at a price or prices higher than the price or prices fixed under
this Section.]
Sales of coffee 17. [“No registered owner shall sell or contract to sell
in excess of coffee from any registered estate if by such sale the free
free Sale Quota sale quota allotted to that estate is exceeded; nor shall a
registered owner sell or contract to sell any coffee produced
on his estate in any year for which no free sale quota is
allotted to the estate.”]
[ ]
Sales of coffee 18. No registered owner shall sell coffee unless either -
how made
(a) it has been cured at or is delivered to the buyer through

a curing establishment licenced under Section 28, or
(b) it is sold under in accordance with the provision of a

licence procured from the Board under Section 24.
19. [ ]
Export of 20. No coffee shall be exported from [India] otherwise 8 of 1878

Coffee than by the Board or under an authorisation granted by the
Board in the prescribed manner and in the prescribed cases,
and the provisions of the [“Customs Act, 1962, 52 of
1962
shall have effect as if the provision made by this Section
VII of 1978 had been made by notification issued under Section 11.”]
[Provided that nothing herein contained shall apply to coffee –
(i) shipped as stored any vessel or aircraft in such

quantity as the Collector considers reasonable,
having regard to the number of the crew and
passengers and the length of the voyage or journey,
as the case may be, on which the vessel or aircraft
is [about to proceed, or]
(ii) carried as per personal baggage of a passenger not

exceeding such quantities, as the Central Government
may, by notification in the Official Gazette, specify or
(iii) exported for such purposes and in such quantities as

the Central Government may specify in the like manner]
[Provided further that the Central Government may by order

in writing, specify the quantity of coffee which shall be permitted
for export during any year and where any such order is made, no
coffee shall be exported from India in excess of the said quantity;]
Provided further that the Central Government may exempt the

operation of this Section, either absolutely or subject to conditions,
the export of coffee from S.7 [India] [to the State of Jammu
and Kashmir] or to any foreign settlement bounded by India.
The following notification was issued by the Government of India,

Ministry of Commerce and Industry, New Delhi, on 1st November 1963.
NOTIFICATION
(Coffee Control)
In pursuance of Clause (ii) and (iii) of the first proviso to Section

20 of the Coffee Act, 1942 (7 of 1942) the Central Government hereby
directs that coffee may be exported from India otherwise than under an
authorisation granted by the Coffee Board:
(a) in quantities not exceeding 2 Kilograms when carried as

personal baggage of a passenger; or
(b) in quantities not exceeding 2 Kilograms and 6 Kilograms

respectively, when sent by post by sea or by air, as gift parcels
and bona fide samples.
[14(10 Plant (B) 62]
Re-import 21. (1) No coffee which has been exported from India shall be
of coffee re-imported into [India] except under and in accordance with a permit
export from granted by the Board.
India.
(2) The Board may in any fit case grant such a permit and no
charge shall be made therefor.
Free Sale 22. (1) [“Unless with the previous sanction of the Central Government
Quota the Board decides that no free sale quotas shall be allotted, the Board
shall, as soon as may be, allot to each registered estate a free sale quota
for the year.
(2) The free sale quota shall be a fixed percentage, common to all
registered estates, not exceeding fifty per cent of the probable total
production of the estate in the year as estimated by the Board.
Provided that the Board may, with previous sanction of the

Central Government allot such quota at a percentage higher than
Fifty per cent of the said probable total production.
(3) The Board may at any time vary the free sale quota by varying
the fixed percentage common to all registered estates, or may express the
whole or any part of the free sale quota of an estate in terms of bulk
instead of in terms of weight.”]
Returns to 23. (1) A registered owner shall furnish to the Board at the prescribed
be made by times and in the prescribed manner such returns as may be prescribed.
registered
owners.
(2) If any registered owner fails to furnish the returns required under
Sub-Section (I) in respect of any estate, the Board may 3 (without
Prejudice to any penalty to which the said owner is liable under
Section 37 A) refuse to allot a 1[free] sale quota to that estate, or, where
A free sale quota has already been allotted, may cancel it.
(3) The Board may authorise an officer to visit any estate at any
time to verify the accuracy of any return made under this Section or to
ascertain the productive capacity of the estate.
Licences 24. The registered owner of any estate, may subject to the prescribed
for sale of conditions and so long as the [free] sale quota allotted to that estate will
uncured not be exceeded by the proposed sale, obtain from the Board a licence for
coffee the sale from that estate of uncured coffee.
Surplus 25. (1) All coffee produced by a registered estate in excess of the amount
coffee and specified in the [free] sale quota allotted to that estate 2[or when no [free]
surplus sale quotas have been allotted to estates,] all coffee produced by the
pool estate] shall be delivered to the Board for inclusion in the surplus pool by
the owner of the estate or by the curing establishment receiving the coffee
from the estate.
[Provided that where no [free] sale quotas have been allotted to estates,
the Chairman may allow the owner of any estate to retain with himself
for purposes of consumption by his family and for purpose of seed, such
quantity of coffee as the Chairman may think reasonable;
Provided further that where the Central Government is satisfied that

it is not practicable for any class of owners producing coffee in any
specified area to comply with the provisions of this Sub-Section on
account of the small quantity of coffee produced by them or on account of
their estates being situated in a remote locality, the Central Government
may, in notification in the Official Gazette exempt such class of owners
from the provisions of this Sub-Section.]
(2) Delivery shall be made to the Board in such places [at such
times] and in such manner as the Board may direct, and such directions
may provide for partial delivery to the surplus pool at any time whether or
not at that time the [free] sale quota has been exceeded and the coffee
delivered shall be such as to represent fairly in kind and quality the
produce of the estate. The Board may reject any consignment offered for
delivery which does not satisfy this requirement; but shall not reject any
consignment merely for a defect in curing.
(3) Coffee delivered for inclusion in the surplus pool shall upon
delivery to Board remain under the control of the Board which shall be
responsible for storages, curing where necessary, and marketing of the
coffee.
(4) The Board shall [ ] [from time to time] prepare a

differential scale for the valuation of coffee, and shall in accordance with
that scale classify the coffee in each consignment delivered for inclusion
in the surplus pool according to its kind an quality and shall make an
assessment of its value based on its quantity, kind, and quality.
(5) The Board may, with the consent of a registered owner [ ]

treat as having been delivered for inclusion in the surplus pool any coffee
from such estate which the registered owner may agree to have so treated.
(6) When coffee has been delivered or is treated as having been
delivered for inclusion in the surplus pool, the registered owner whose
coffee has been so delivered shall retain no rights in respect of such coffee
except his right to receive the payments referred to in Section 34.
Sales of 26. (1) The Board shall take all practical measures to market the
Coffee by coffee included in the surplus pool, and all sales thereof shall be
the Board conducted by or through the Board.
(2) The Board may purchase for inclusion in the surplus pool
Coffee not delivered for inclusion in it.
Curing of Coffee
Coffee to 27. No registered owner shall cause or allow coffee to be cured

be cured in elsewhere than in a licensed curing establishment, whether the curing
licenced establishment is maintained by himself or by another person.
curing
establishments
Licencing 28. Every establishment for curing coffee shall obtain from the Board
of curing a licence to operate as such.
establishments
Information 29. (1) A registered owner when sending coffee to a curing establishment
to be shall report to the Board, separately for each estate from which coffee is
supplied to sent, the amount of coffee sent and the curing establishment shall in
accordance with such instructions as may be issued by the Board and
having regard to the [free] sale quota of the estate. [where one has been
allotted] apportion each such consignment into two parts, one part
consisting of coffee intended for [free] sale and one part of coffee intended
to be delivered for inclusion in surplus pool and shall report to the Board
the amount of coffee in each such [where no [free] sale quotas have been
allotted to estates, the curing establishments shall report merely the whole
amount of coffee sent in each such consignment]
(2) A registered owner curing coffee in a curing establishment

maintained by himself shall supply to the Board the information specified
in Sub-Section (1).
(3) A curing establishment which buys or received uncured coffee
from any person shall ascertain the estate on which coffee was produced
and shall report to the Board the quantity of coffee so obtained and the
estate or estates from which it came.
(4) Every curing establishment shall maintain accounts in such

forms as may be required by the Board and such accounts shall be open to
inspection at any time by the Board or by an officer authorised in this
behalf by the Board.
Finance
Separate 30. The Board shall maintain two separate funds, a General Fund and a
funds to be Pool Fund.
maintained
by the
Board.
General [31. (1) To the General fund shall be credited:

Fund
(a) all amounts paid to the Board by the Central Government
under Sub-Section (1) of Section 13; and
(b) any sums transferred to the General Fund under the

provision to Sub-Section (2) of [Section 32; and ]
[(c) all fees levied and collected by the Board under Act.]
(2) The General Fund shall be applied;
(a) to meet the expenses of the Board;
(b) to meet the cost of such measures as the Board may

consider advisable to undertake for promoting
agricultural and technological research in the
interest of the coffee industry in India;
(c) for making such grants to the coffee estates or for

meeting the cost of such other assistance to coffee
estates as the Board may think necessary for the
development of such estates;
(d) to meet the cost of such measures as the Board considers
advisable to undertake for promoting the sale and
increasing the consumption in India and elsewhere of
coffee produced in India; and
(e) to meet the expenses for securing better working

conditions and the provision and improvement of
amenities and incentives for workers.
Pool Funds. 32. (1) To the Pool Fund shall be credited all sums realised
by sales by the Board of coffee from the surplus
pool.
(2) Subject to the provisions of Sub-Section 13, [“The

Pool Fund”] shall be applied only to –
(a) the making to registered owners of estates of payments

proportionate to the value of the coffee delivered by
them for inclusion in the surplus pool;
(b) the Cost of storing, curing and marketing coffee deposited

in and of administering the surplus pool;
(c) the purchase of coffee not delivered for inclusion in the

surplus pool;
[Provided that where, after the requirements, of the Clauses

of the Sub-Section have been met there remains any excess in the
Pool fund, the Board may, with previous sanction of the Central
Government, transfer the whole or any part of such excess to the
Credit of the General fund.]
32.A, [ ]
Powers to borrow 33. The Board may, subject to any prescribed conditions,
borrow on the security of the General fund or the Pool fund
for any purposes for which it is authorised to expend money
from such fund, or on the security of the Coffee delivered or
treated as delivered for inclusion in the surplus pool for any
purposes for which it is authorised to expend money from the
Pool fund.
34. (1) The Board shall at such times as it thinks fit make
to registered owners who have delivered coffee for inclusion
in the surplus pool such payments out of the Pool fund as it may
think proper.
(2) The sum of all payments made under Sub-Section (1)

to any one registered owner shall bear to the sum of the
payments made to all registered owners the same proportion as
the value of coffee delivered by him out of the year’s crop.
[Provided that in calculating the sum of all payments

made under Sub-Section (1) and the value of coffee delivered to
the surplus pool out of the years crop, respectively, any payment
accepted by a registered owner as final payment in immediate
settlement for coffee delivered by him for inclusion in the
surplus pool and the value of any such coffee shall be excluded.]
Penalties and Procedure
35. Any owner of a coffee estate who fails to apply for

registration in accordance with Section 14 shall be punishable
with fine which may extend to one thousand rupees and to a
Failure to further fine which may extend to five hundred rupees for each
register month after the first during which such failure continues.
Contraven- 36. (1) Any registered owner who contravenes the provisions
tions to of Sub-Section (2) of Section 16, or Section 17, Section 18, any
Section 16, licences curer [or dealer] who contravenes the provisions of
17, 18 and Sub-Section (2) of Section [ ] shall be punishable with fine
19 which may extend to one thousand rupees.
(2) When a registered owner is convicted under this Section,

the Board may thereafter deduct from any payment to be made
under Section 34 to such registered owner a sum equal to the value
as estimated by the Board of any coffee unlawfully sold by him.
Unlicenced 37. If any curing establishment operates as such without a

curing licence, the owner shall be punishable with fine which may extend
establishment to five hundred rupees.
Contravention [37.A. Any registered owner who fails to furnish the required by
of Sections Sub-Section (1) of Section 23 as required by that Sub-Section
23 (1) shall be punishable with fine which may extend to one thousand
rupees.
False returns 38. Any person who makes in any return to be furnished
under Section 23 or in any report to be made under Section 29
any statement which is false and which he knows to be false or
does not believe to be true shall be punishable with fine which
may extend to one thousand rupees.
38 A. Any registered owner or licences curer who fails to

deliver any coffee to the Board as required by or under Sub-
Section (1) and (2) of Section 25 shall be punishable with fine
which may extend to one thousand rupees, and the court by
which such person is convicted may order the confiscation and
delivery to the Board of any coffee in respect of which the
offence was committed]
Powers to seize 38 B. If the Board is satisfied that any coffee which is

Coffee witheld required under the provision of Section 25 to be delivered
From inclusion for inclusion in the surplus pool is being or is likely to be
In surplus pool disposed off otherwise than by such delivery, the Board may
order the seizure of such coffee, and may authorise an officer
of the Board to effect seizure thereof for delivery for inclusion
in the surplus pool and such authorisation shall be sufficient
warrant for such officer to take all steps necessary to secure
possession of the coffee.
Obstruction 39. Whoever obstructs any member of officer of the Board

or any person authorised by the Board or by the Central
Government in the discharge of any duty imposed on or entrusted
to him under this Act, or who having control over, or custody of
any records fails to produce such records when required to do so
or refuses information lawfully asked for by a member or officer
of the Board or by the Central Government to inspect such records
or ask for such information shall be punishable with fine which
may extend to one thousand rupees.
Offences by [39.A. (1) If the person committing any offence under

Companies this Act is 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 published accordingly:
Provided that nothing contained in this Sub-Section shall

render any such person liable to punishment provided in this Act
if he proves that the offence was committed without his knowledge
or that he exercised all dues 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
accompany 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 also be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
Explanation:- For the purpose 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
Cognizance 40. (1) No court other than the Court of a [Metropolitan

of offence Magistrate or a Judicial Magistrate of the first class] shall take
cognizance of any offence punishable under this Act.
(2) no court shall take cognizance of an offence punishable

under Section 35 except on complaint made by an officer
authorised in this behalf by the (State) Government (or of the
offence specified in Sub-Section (2) of Section 16 except on
complaint made by an officer authorised in this behalf either
by the (State) Government or by the Board) or of an offence
punishable under any other Section except on complaint made
with the previous sanction of the Central Government by an officer
authorised in this behalf by the Board.
[Provided that the Central Government may, by notification

in the official Gazette, direct that the previous sanction of the
Central Government shall not be necessary for complaints in such
cases or classes of cases as may be specified in the notification.]
General
41. [ ]
Control by the 42. (1) All acts of the Board shall be subject to the control of
Central Government the Central Government which may cancel, suspend or modify as
it thinks fit any action taken by the Board.
(2) The records of the Board shall be open to inspection at

all reasonable times by any officer authorised in this behalf by the
Central Government.
Appeal to the 43. (1) Any person aggrieved by an order of the Board
Central Government refusing a licence to or cancelling the licence of curing
establishment may, within sixty days of the making of the order,
appeal to the Central Government.
(2) Any person making an appeal under this Section

shall pay a fee of five rupees which shall be credited to Central
Revenue.
Inspection of 44. [Any person authorised in this behalf by the Central

Records Government or by the Board or any member of the Board so
authorised by the Chairman in writing or any officer of the Board
may enter at all reasonable times] any estate of any curing
establishment [or any place here coffee is stored or exposed for
sale] and may require the production for his inspection of any
records kept therein, or ask for any information relating to the
production, storage or sale of coffee [ ]
Accounts of the 45. (1) The Board shall keep accounts in such a manner as
Board may be prescribed of all money received and expended by it.
(2) The accounts shall be kept separately for the General

Fund and the Pool fund.
(3) The Board shall cause the accounts to be audited

annually by auditors appointed by the Central Government, and
the auditors shall have power to disallow any item of expenditure
which has in their opinion been incurred otherwise than in
accordance with this Act.
(4) The Central Government may, on the application of the

Board, allow any item of expenditure disallowed by the auditors
under Sub-section (3).
Inspection of 46. Any registered owner [ ] may, subject to the prescribed

Records of the conditions inspect the records maintained by the Board and may on
Board and obtaining payment of the prescribed fee obtain copies of any proceedings or
of copies order of the Board.
Contracts 47. All contracts for the sale of coffee in so far as they are at
variance with the provisions of this Act shall be void.
Provided that nothing contained in this Section shall apply

To contracts to which under Section 47 of the Coffee Market
Expansion Ordinance, 1940, that Ordinance did not apply.
Bar of legal 47.A. No. Suit., prosecution or other legal proceedings shall lie
Proceeding against the Board or any officer of the Board for or in respect of
XII of 1940 anything in good faith done or intended to be under this Act.
Power of the 48. (1) The Central Government may, by notification in the
Central Government Official Gazette, make rules to carry out the purposes of this Act.
to make rules
[(2) without prejudice to the generality of the foregoing
power, rules may be made providing for all or any of the following
matters:-
[(i) the Constitution of the Board, the number or persons to

appointed as members from each of the categories
specified in Clause (c) of Sub-section (2) of Section 4, the
term of office and other conditions of service, or, the
procedure to be followed by, and the manner of filling
vacancies among the members of the Board;
(ii) the circumstances in which, and the authority by which,

and the authority by which, members may be removed;]
(iii) the procedure to be followed at meetings of the Board and

at Committees thereof for the conduct of business and the
number of members which shall form a quorum at a
meeting;
(iv) the maintenance by the Board of records of business

transacted by the Board and the submission of copies
thereof to the Central Government;
(v) the holding of a minimum number of meetings of the

Board every year;
(vi) the powers of the Board, its Chairman and Committees

thereof with respect to the incurring of expenditure;
(vii) The Conditions subject to which the Board may incur

outside India;
(viii) the preparation of budget estimates of receipts and

expenditure of the Board and the authority by which
the estimates are to be sanctioned;
(ix)
(x) the maintenance of the accounts of income and expenditure
of the Board and the audit of such accounts;
(xi) the deposit of the funds of the Board in Banks and

investments of such funds;
(xii) the appropriations of the estimated savings from any budget

head to any other budget head;
(xiii) the conditions subject to which the Board may borrow

funds;
(xiv) the conditions subject to which and the manner in which
contracts may be entered into by or on behalf of the Board;
(xv) the delegation to the Committee, or Chairman or

Vice-Chairman or members or officers of the Board of any
of the powers and duties of the Board under this Act;
(xvi) the staff which may be employed by the Board and the pay
and allowances and leave and other conditions of service of
officers (other than those appointed by the Central
Government) and other employees of the Board;
(xvii) the travelling and other allowances of members of the

Board and of Committees thereof;
(xviii) the maintenance of the registers and other records of the

Board and its various Committees;
(xviii) the manner in which the [free] sale quota of coffee estates
shall be determined;
(xix) the manner in which the Board shall exercise its powers
of buying and selling coffee;
(xx) the appointment by the Board of agents;
(xxi) the conditions to be fulfilled by a curing establishment

before a licence to operate as such can be issued;
(xxii) the form of, and the particulars to be contained in any
returns, or reports to be made to the Board under this Act;
(xxiii) the form of, manner of application for, fees payable for,
procedure in granting and conditions governing, the
licences and permits to be issued by the Board;
(xxiv) the collections of any information or statistics in respect of

coffee or any product of coffee;
(xxv) any other matter (other than any matter specified in

Section 15) which is to be or may be prescribed under
this Act.]
[“(3) Every rule made 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, 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”]
49. [The Indian Coffee Cess Act, 1935, is hereby repealed]
XII of 1940 50. (1) The Coffee Market Expansion Ordinance 1940. The Coffee Repeals
1 of 1941 Market Expansion (Amendment) Ordinance, 1941. The Coffee Savings
Market Expansion (Second Amendment) Ordinance, 1941, and
VIII of 1941 the Coffee Market Expansion (Third Amendment) Ordinance,
XII of 1941 1941, are hereby repealed.
X of 1897 (2) Without prejudice to the provisions of Section 24 of the

General Clauses Act 1897.
XIII of 1940 (a) any trial or proceeding under The Coffee Market Expansions
Ordinance, 1940, pending at the time of the appeal of the
Ordinance, may be continued and completed as is such
trial or proceeding were a trial or proceeding under this Act;
(b) all registrations made, all licences issued and all other things
done under the said Ordinance shall be deemed to have been made,
issued or done under this Act.
1.9. [All acts of executive authority, proceedings and sentence which
[Validation have been done taken or passed with respect to or on account of, coffee
of certain during the period commencing on the 26th day of January 1953, and
acts and ending with the date of commencement of this Act, by the Government
indemnity or by any officer of the Government or by any other authority in the belief
in respect or purported belief that the acts, proceedings or sentences were being
thereof] done, taken or passed under the principal Act shall has been valid and
operative as if they had been done, taken or passed in accordance with
law, and no suit or other legal proceeding shall be maintained or continued
against any authority whatsoever on the ground that any such acts,
proceedings or sentences were not done, taken or passed in accordance
with law.]
-o-
THE COFFEE RULES, 1955
Note- Amendments are shown in square brackets proceeded by a figure and a letter
which are abbreviations used to denote the following:
I- Inserted by
A- Added by
O- Omitted by
S- Substituted by
1. Notification No.15(1)Plant/55 dated 23.8.1955 of the Ministry of Commerce and

Industry.
2. Notification No.15(15)Plant/55 dated 28.12.1955 of the Ministry of Commerce
and Industry.
3. Notification No.15(17) Plant/55 dated 20.02.1956 of the Ministry of Commerce
and Industry.
4. Notification No.15 (2)Plant/56 dated 17.07.1956 of the Ministry of Commerce
and Industry.
5. Notification No.15(14)Plant/55 dated 22.09.1956 of the Ministry of Commerce,
Consumers and Industries.
6. Notification No.15(7)Plant/B/56 dated 10.11.1956 of the Ministry of Commerce,
Consumer Industries.
7. Notification No.15(2)Plant/56 dated 18.01.1957 of the Ministry of Commerce
and Consumer Industries.
8. Notification No.15(10)Plant/B/56 dated 08.02.1957 of the Ministry of Commerce
and Consumer Industries.
9. Notification No.15(1)Plant/B/56 dated 03.04.1957 of the Ministry of Commerce
and Industries.
10. Notification No.1(2)Plant (B)/57 dated 27.05.1957 of the Ministry of Commerce
and Industry.
11. Notification No.2(5)Plant(B)/57 dated 09.01.1958 of the Ministry of Commerce
And Industry.
12. Notification No.14(37)Plant(B)/57 dated 06.02.1958 of the Ministry of
Commerce and Industry.
13. Notification No.2(3)Plant(B)/57 dated 14.02.1958 of the Ministry of Commerce
and Industry.
14. Notification No.15(16)Plant(B)/55 dated 21.03.1958 of the Ministry of
15. Notification No.1(5)Plant(B)57 dated 16.04.1958 of the Ministry of Commerce
and Industry.
16. Notification No.15(1)Plant (B)55 dated 16.04.1958 of the Ministry of Commerce
and Industry.
and Industry.
18. Notification No.3(4)PICR(C&R)57 dated 15.10.1958 of the Ministry of
and Industry.
20. Notification No.2(7)Plant (B)(58) dated 29.10.1958 of the Ministry of Commerce
and Industry.
and Industry.
and Industry.
23. Notification No.3 (4)PICR(C&R)57 dated 30.03.1959 of the Ministry of
24. Notification No.2(4)Plant(B) 58 dated 29.04.1959 of the Ministry of Commerce
and Industry.
and Industry.
and Industry.
27. Notification No.2 Plant(B)60 dated 01.03.1960 of the Ministry of Commerce and
Industry.
and Industry.
29. Coffee (Amendment) Rules, 1961- Notification No.1(2)Plant (B)60 dated
21.3.1961 of the Ministry of Commerce Industry.
30. Coffee (Third Amendment) Rules, 1961- Notification No.(8)4 Plant(B)60 dated
22.06.1961 of the Ministry of Commerce and Industry.
31. Coffee Third (Amendment) Rules, 1961 – Notification No.(1)1 Plant(B)61 dated
32. Coffee Fourth (Amendment) Rules, 1961 – Notification No.3(4)PICR (C&R)57
dated 31.10.1961 of the Ministry of Commerce and Industry.
33. Coffee (Amendment) Rules, 1962 – Notification No.F(2)Plant(B)62 dated
34. Coffee Second (Amendment) Rules, 1962 – Notification No.2(2)Plant (B)62
dated 04.04.1962 of the Ministry of Commerce and Industry.
35. Coffee (Amendment)Rules, 1962 – Notification No.2(3) Plant(B)62 dated
36. Coffee Fourth (Amendment)Rules, 1962 – Notification No.2(3)Plant B/62 dated
25.05.1972 of the Ministry of Commerce and Industry
37. Coffee Fifth (Amendment) Rules, 1962 – Notification No.2(5)Plant B/62 dated
38. Coffee (Amendment) Rules, 1963 – Notification No.2(2)Plant (B)63 dated
27.03.1963 of the Ministry of Commerce and Industry (Department of
International Trade).
39. Coffee (Second Amendment) Rules, 1963 – Notification No.2(3)Plant (B)63
dated 01.04.1963 of the Ministry of Commerce and Industry (Department of
International Trade).
40. Coffee (Third Amendment) Rules, 1963 – Notification No.2(5)Plant(B)62 dated
41. Coffee (Amendment) Rules, 1964 – Notification No.2 (4) Plant (B)63 dated
26.03.1964 of the Ministry of International Trade.
42. Coffee (Second Amendment) Rules, 1964 – Notification No. 2(1)Plant(B) dated
29.07.1964 of the Ministry of Commerce.
43. Coffee Third (Amendment) Rules, 1964 – Notification No.2(3) Plant (B)64 dated
44. Coffee (Amendment) Rules, 1961- Notification No.2 (4) Plant (B)64 dated
45. Coffee (Second Amendment) Rules, 1965 – Notification No. 9(2) Plant (B) 63
dated 18.01.1965 of the Ministry of Commerce.
46. Coffee (Third Amendment) Rules, 1965 – Notification No.9(28) Plant (B) 65
47. Coffee (Amendment) Rules, 1966 – Notification No.2(1) Plant (B) 66 dated
48. Coffee (Second Amendment) Rules, 1966 – Notification No.9(6) Plant (B) 66
49. Coffee (Fourth Amendment) Rules, 1966 – Notification No.8 (1) Plant (B) 66
50. Coffee (Third Amendment) Rules, 1966 – Notification No.9(38) Plant (B) dated
51. Coffee (Amendment) Rules, 1967 – Notification No.2(6) Plant (B) 66 dated
52. Coffee (Second Amendment) Rules, 1967 – Notification No.8 Plant (B) 56 dated
53. Coffee (Third Amendment) Rules, 1967 – Notification No.2(5) Plant(B) dated
54. Coffee (Fourth Amendment) Rules, 1967 – Notification No.2(1) Plant(B) 67
55. Coffee (Fifth Amendment) Rules, 1967 – Notification No. 14(8)Plant(B)66 dated
29.09.1967 of the Ministry of Commerce
56. Coffee (Sixth Amendment) Rules, 1967 – Notification No.9(30)Plant(B)66 dated
57. Coffee (Amendment)Rules, 1971 – Notification No.2(1)Plant(B)67 dated
23.04.1971 of the Ministry of Foreign Trade.
58. Coffee (Second Amendment) Rules, 1971 – Notification No.2(1)Plant(B)70 dated
59. Coffee (Amendment) Rules, 1972 – Notification No.2 (3) Plant (B)67 dated
60. Coffee (Second Amendment)Rules, 1972 – Notification No.2 (1) Plant(B) 67
dated 02.03.1972 of the Ministry of Foreign Trade.
61. Coffee (Third Amendment) Rules, 1972 – Notification No.2(1) Plant (B)67 dated
62. Coffee (Fourth Amendment) Rules, 1972 – Notification No.2 (1) Plant (B)67
dated 08.07.1972 of the Ministry of Foreign Trade.
63. Coffee (Amendment) Rules, 1973 – Notification No. 2 (1) 67 Plant (B) dated
64. Coffee (Amendment) Rules, 1974 – Notification No.2 (15) 69 Plant (B) dated
65. Coffee (Second Amendment) Rules, 1974 – Notification No.F-10(14)74 Plant
(B) dated 7.11.1974.
66. Coffee (Amendment) Rules, 1975 – Notification No. 9(20)/69/Plant (B) dated
29.03.1975.
67. Coffee (Amendment) Rules, 1976 dated 26.7.1976
68. Coffee (Amendment) Rules, 1976 – Notification No.9(11)/69 Plant (B) dated
02.06.1977
69. Coffee (Amendment) Rules, 1977 – Notification No.9/15/69 Plant (B) dated
20.09.1977.
70. Coffee (Amendment) Rules, 1978 – Notification No. dated 10.04.1978
71. Coffee (Amendment) Rules, 1980 – Notification No.2 1/80 Plant (B) dated
05.06.1980.
72. Coffee (Amendment) Rules, 1977 – Notification No. 9 (10) 80 Plant (B) dated
28.09.1981.
73. Notification (Coffee Control) No. 9/3/84 Plant (B) dated 08.06.1984 of the
Ministry of Commerce, Government of India, New Delhi
74. Notification (Coffee Control) No. 9/4/84 Plant B dated 30.08.1984 of the
Ministry of Commerce, Government of India, Department of Commerce¸ New
Delhi.
75. Notification dated 20.06.1983 of the Ministry of Commerce, Government of
India, New Delhi.
76. Notification No.9/1/85 Plant B dated 25.02.1985 of the Ministry of Commerce
77. Notification No. G.S.R. dated 5.1.1987 of the Ministry of Commerce
78. The Coffee (Second Amendment) Rules, 1987 – Notification No.G.S.R. dated
79. The Coffee (Amendment) Rules, 1988 – Notification No. G.S.R. No. 663 dated
80. The Coffee (Second Amendment) Rules, 1988 – Notification No. G. S. R.
No.851 dated 18.10.1988 of the Ministry of Commerce
81. The Coffee (Amendment) Rules, 1989 – Notification No. G. S. R. 427 (E) dated
82. The Coffee (Second Amendment) Rules – Notification No. G. S. R. 462 (E) dated
83. The Coffee (Third Amendment) Rules, 1989 – Notification No. G. S. R. 1051 B
dated 14.12.1989.
84. The Coffee (Amendment) Rules, 1992 – Notification No. G. S. R. dated
85. The Coffee (Amendment) Rules, 1992 – Notification No.G.S.R. dated 13.11.1992
86. The Coffee (Third Amendment) Rules, 1992 – Notification No. G.S.R. dated
14.12.1992.
87. The Coffee (Amendment) Rules, 1994 – Notification No.G.S.R. dated 4.2.1994
88. Notification dated 25.10.1995.
-*-
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRIES
New Delhi, the 1st August 1955
--------------
NOTIFICATION
(Coffee Control)
S. R.O. 1966 - In exercise of the powers conferred by section 48 of the Coffee Act,
1942 (VII of 1942) and in supersession of the Coffee Market Expansion Rules, 1940 the
Central Government hereby makes the following rules, namely: -
CHAPTER –I
PRELIMINARY
1 Short Title : These rules may be called. The Coffee Rules 1955
2 Definitions : In these rules, unless the context otherwise
requires
(1) "The Act" means Coffee Act, 1942 (VII of 1942)
(2) " Chief Accounts Officer" means the Chief Accounts Officer of
the Board
(3) "Board" means Coffee Board constituted under Section 4
(4) "Chairman" means the Chairman of the Board
(5) "Chief Coffee Marketing Officer" means the Chief Coffee
Marketing Officer of the Board and includes the Deputy Chief
Coffee Marketing Officer
(6) "Committee" means any Committee constituted or appointed by

the Board under Sub-Section (2) of Section 7
(7) "Deputy Chief Coffee Marketing Officer" means the Deputy
Chief Coffee Marketing Officer of the Board
(8) "Deputy Secretary" means the Deputy Secretary to the Board
(8a) "Director of Propaganda" means the Director of Propaganda of
the Board
(9) "Director of Research" means the Director of Research of the
Board
(10) "Form" means Form set out in the First Schedule
(11) "Large Grower" means a registered owner owing land planted
either with Arabica coffee, Robusta coffee, or both, aggregating
to not less than 25 acres, whether such land id comprised in one
estate or more than one estate
(12) "Member" means a Member of the Board
(13) "Robusta Grower" means a registered owner owing land planted
with Robusta coffee aggregating to not less than 5 acres, whether
such land is comprised in one estate or more than one estate;
Provided that where both Robusta and Arabica Coffee are
planted, the area under Robusta shall not be less than the area
under Arabica;
(14) " Schedule" means a Schedule set out in these Rules

(15) "Secretary" means Secretary to Board
(16) "Section" means a registered owner who is not a large grower
(17) "Small Grower "means a registered owner who is not a large
grower
(18) "Vice-Chairman" means the Vice-Chairman of the Board; and
(19) "Year" means the year as defined in the Act' Provided that for
the purposes of preparing a budget out of the General Fund of
the Board, and Annual Report of the Board, year shall mean the
financial year commencing on the Fist day of April.
CHAPTER II
Board and its Constitutions
3 Constitution of the Board and the manner of filling

vacancies:-
(1) The Board shall consist of a Chairman, three Members of

Parliament and twenty-nine other members representing the
Government of states and other interests specified in Sub Rule
(2).
[(2) Of the twenty-nine other members:-
(a) four members shall represent the Governments of the principal

coffee growing States, one representing each of the State of
Andhra Pradesh, Karnataka, Kerala and Tamilnadu to be
appointed in consultation with the respective State Government.
(b) "ten members shall represent the coffee growing industry of

whom three shall represent the large growers and seven shall
represent the small growers; Provided that not less than three of
such members shall represent the Robusta growers."
(c) "three members shall represent the coffee trade interests, two
members shall represent the curing establishment, four members
shall represent the interests of labour; two members shall
represent the interests of consumers; two members shall
represent the interests of coffee growing states other than those
mentioned in Clause (a) of Sub-Rule 2 of Rule 3 (viz; States of
Andhra Pradesh, Karnataka, Kerala and Tamilnadu); one
member shall represent the manufacturers of instant coffee and
one shall be an eminent scientist from a Research Institute or an
Agricultural University or an eminent personality in marketing
management or promotion of coffee"
(3) The Central Government may make such consultations as it

may think fit before appointing the representatives of the
interests specified in Clauses (b) and (C) of Sub-rule (2)
[Terms of Office:- 4 (1) Save as hereinafter provided, a member
shall hold office for such period not exceeding three years shall be
eligible to re-appointment;
Provided that a member elected under clause (b) of Sub-
Section (2) of Section 4 by either House of Parliament shall cease
to be a member of the Board if he ceases to be a members of the
House by which he was elected.
Provided further that the period of appointment of a members
would be limited to the period of availability of the officer either on
deputation on basis or the period for which he holds the post on ex-
officio basis by virtue of which he is appointed as a member].
(2) A member appointed to fill a casual vacancy shall hold

office so long as the member whose place he fills would have been
entitled to hold office if the vacancy had not occurred.]
5. Membership Roll: - The Secretary shall keep a record of

names of members and their addresses.
6. Change of Address:- If a member changes his address, he

shall notify his new address to the Secretary who shall there-upon
enter his new address, in the official records but if he fails to notify
his new address, the address in the official records shall for all
purposes be deemed to be the member's correct address.
[7. Resignation:- (1) A member of the Board or of a Committee

may resign his office by a letter addressed to the Secretary.
(2) The office of a member of the Board or of a Committee

shall fall vacant from the date on which his resignation is accepted
by the Chairman of the Board or of the Committee, as the case may
be, or on the expiry of thirty days from the date of receipt of
intimation of resignation whichever is earlier.]
8. Removal from the Board :- The Central Government may

remove any member from his office:
(a) If he becomes bankrupt or insolvent or suspends payment or
compounds with his creditors, or
(b) if he is convicted of any offence which is punishable under the

Indian Penal Code (Act XLV of 1860) and such offence isnon-
bailable under the provisions of the Code of Criminal Procedure
Act, 1973 (2 of 1974), or]
(c) if he is of unsound mind and stands so declared by a competent
court or
(d)if he absent himself from two consecutive meetings of the Board

without the leave of the Chairman and in any case from three
consecutive meetings, or
(e)if he defaults in payment of any dues to the Board and if so

declared by the Board.
9. Absence from India :- (1) Before a member departs from

India –
(a) He shall intimate to the Secretary the date of his departure

from and the date of his expected return to India and
(b) if he intends to be absent from India for a period longer than

six months, he shall tender his resignation.
(c) if any member departs from India without taking either of

the courses mentioned in Sub-rule (1) he shall be deemed to
have resigned his office with effect from the date of his
departure from India.
10. [Vice Chairman:- (1) The Board shall, in each year out
of its own member, elect a person to be the Vice-Chairman
for a period of twelve months commencing from the date of
his election or if the elections held before the expiry of the
term of office of an existing Vice-Chairman, from the date
on which such Vice-Chairman would vacate office.
(2) In the event of the Vice-Chairman resigning his office as

such or ceasing to be a member of the Board, the Board shall
at its next meeting elect a member to be Vice-Chairman for
the unexpired portion of the term of office of the Vice-
Chairman elected under Sub-Rule (1)
CHAPTER III
Procedures – Board and Committees
11. Minimum number of meetings of the Board: -

[There shall be not less than two ordinary meetings of the
Board in a year on dates to be fixed by the Chairman and
shall be held at Head Quarters of the Board. The interval
between any two ordinary meetings shall not, in any case, be
longer than eight months.
Provided that if the meeting is to be held outside the

head quarters, the reasons for holding such meetings outside
the HQs shall be recorded in writings.]
12. Power to call Board Meetings:- (1) The Chairman

of the Board may at any time call a meetings of the Board
and shall do so if a requisition for that purpose is presented
to him by at least eight members of the Board.
(2) At least fourteen clear days before any meeting of the

Board, notice of the time and place of the intended meetings,
signed by the Secretary, shall be sent to the Government of
India ( in the appropriate Ministry) and left at or
posted to the address of every member of the Board.
Provided that in case of urgency, a special meeting may

be summoned at any time by the Chairman who shall inform
in advance the Government of India (in the appropriate
Ministry) and members of the subject matter for discussion
and the reasons for which he considers it urgent. No
ordinary business shall be transacted at such special
meetings.
(3) The Chairman of the Board may require any officer of

the Board or invite any person or persons to attend any
meetings of the Board.
13. Quorum:- No business shall be transacted at any

meeting of the Board unless there are present at least twelve
members.
14. Presiding over Board Meeting:-
The Chairman shall preside at every meeting of the Board

at which he is present, and in his absence , the Vice-
Chairman shall preside, but when both the Chairman and the
Vice-Chairman are absent from any meetings the members
present shall elect one of their members to preside, at that
meetings.
15. Agenda:-
(1) The Chairman of the Board shall cause to be prepared

and circulated to the Government of India (in the
appropriate Ministry) and among the members at least ten
days before an ordinary meeting of the Board a list of
business to be considered at that meeting.
(2) No business set down on the agenda shall be

considered without the permission of the Chairman.
16. Business by Circulation:-
(1) All questions which the Board is required to take into

consideration shall be referred to the members of the Board
either at its meetings or by circulation of papers if the
Chairman so directs and copies of all papers so placed at the
meetings or so circulated to members shall be sent to the
Government of India(in the appropriate Ministry)
(2) Any proposal or resolution so circulated and approved

by the majority of members who have recorded their views
in writing shall be as effectual and binding as if such
proposal or resolution were decided by a majority of votes of
members at the meeting.
Provided that at least twelve members of the Board have
recorded their views on the resolution or proposal.
Provided further that the papers need not be sent to any
member who is absent from India
Provided also that when a question referred by circulation of
papers any four members of the Board may require that the
question be referred to a meeting and there upon such a
reference shall be made top the Board at a meeting.
(3) When any business is referred to member of the Board

by circulation, a period of not less than 10 clear days shall be
allowed for receipt of replies from members. Such period is
to be reckoned from the date on which the notice of business
is issued.
(4) If a resolution proposal is circulated, the results of the

circulation shall be communicated to all the members and to
the Govt. Of India(In the appropriate Ministry)
(5) All decision on questions arrived by the circulation of

papers shall be placed at the next meeting of the Board for
record.
17. Voting:-
(1) Except as provided in Rule 16, every question brought

before any meeting of the Board shall be decided by a
majority of the members present and voting at the meetings
before which the matter is brought.
(2) [ ]
18. Appointment of Committees:
[1] The Board may appoint every year the following

standing committees and may appoint such other
committees as the Board deems necessary to exercise such
powers and discharge such functions as may be delegated
to it under these rules, namely:
[a] an Executive Committee consisting of :-
(i) The Chairman who shall be the ex-officio Chairman

of the Committee.
(ii) the Vice-Chairman
(iii) the members representing the Govt. Of Karnataka
(iv) two of the three members representing the Govt.

Of Tamilnadu, Kerala and Andhra Pradesh, sitting on the
Committee by rotation for each year beginning with the
representatives of the Govt. Of Tamilnadu and Kerala.
(v) An eminent scientist from a Research institute or an

Agricultural University or an eminent personality on
marketing management or promotion of coffee.
(vi) Five other members appointed by the Board by
election, of whom one shall be a Representative of the
interest of coffee growing states (other than 4 members
from coffee growing states mentioned in Rule 3 (2) (A)
one representative of labour and not more than two being
representatives of growers.
[b] a Propaganda Committee consisting of
(i) the Chairman who shall be the ex-officio Chairman

of the Committee
(iii) the member representing interests of manufacturers

of instant coffee; and five other members appointed by
the Board by election of whom one shall represent the
interests of consumers, one represent trade and one
represent labour and two members to represent the
growers. Provided that the Director of Propaganda shall
attend all meetings of the Propaganda Committee and
participate in its proceedings but shall have no right to
vote.
(c) A Marketing committee consisting of

of the Committee
(iii) two members representing curing establishments
(iv) the two members representing consumers
(v) the members representing the manufacturers of

instant coffee;
(vi) one member who shall be an eminent-scientist from

a Research Institute or an Agricultural University or an
eminent personality in marketing, management or
promotion of coffee.
(vii) nine other members appointed by the Board by

election, of whom six shall be representative of
growers/State Plantation Corporation and two being
representative of coffee trade and one being a
representative of labour.
provided that the Chief Coffee Marketing Officer

shall attend all meetings of the Marketing Committee but
shall have no right to vote.
(b) a Research Committee consisting of:

of the Committee
(ii) the Vice-Chairman;
(iii) the member representing the Govt. Of the state of

Karnataka
(iv) the member representing the Govt. Of the state

Tamilnadu
(v) the member representing the Govt. Of the state

Kerala
(vi) the member representing the Govt. Of Andhra

Pradesh
(vii) one of the member representing the interests of

coffee growing states other an State of Karnataka,
Tamilnadu, Kerala and Andhra Pradesh to be appointed by
the Board by election.
(viii) seven other members appointed by the Board by

election of who three shall be from the State of Karnataka.
Provided that the Director or Research shall attend all

meetings of the Committee and participate in its
proceedings but shall have no right to vote.
(e) A Development Committee consisting of:
(i) the Chairman who shall be ex-officio Chairman of

the Committee;
(ii) the Vice – Chairman;
(iii) A member representing the interests of coffee

growing States other than Andhra Pradesh, Karnataka,
Kerala and Tamilnadu to be appointed by the Board by
election;
(iv) four members representing small growers to be
appointed by the Board by election;
(v) two members representing large growers to be

appointed by Board by election;
The member representing the Government of Andhra

Pradesh
Provided that the Development Officer and Director of

Research shall be invited to attend all meetings of
Committee and participate in all its proceedings but shall
have no right to vote.
(f) A Coffee Quality Committee consisting of:
(i) the Chairman who shall be the ex-officio Chairman

of the Committee;
(iii) five members to be appointed by the election, of

whom one shall represent the interest of coffee curing
establishments, one to represent the interests of coffee
trade and three to represent the coffee growers;
(iv) the member representing interests manufacturers of

instant coffee;
Provided that the Chief Coffee Marketing }Co-opted

Officer and Director of Research }Members
Shall be invited to attend all meetings of the Coffee

Quality Committee and participate in its proceedings but
(2) Sub-Committee:- A Committee appointed by the Board may

appoint a Sub-Committee from among its members for enquiring
and reporting on any specified subject or any other purpose within
the scope of the functions of allotted to it by the Board. Such Sub-
Committee shall have no statutory powers.
(3) The Chairman of any Committee appointed by the Board may

require any officer of the Board or invite any person or persons to
attend any meeting of the Committee but such officer or persons
(3) Functions of Committees:- (a) Propaganda Committee:

Subject to such restrictions as may be imposed by the Board, the
Propaganda Committee shall discharge all the functions of the
Board in regard to such measures as may be undertaken for
promoting the sale and increasing the consumption in India and
elsewhere of coffee produced in India.
(b) Marketing Committee: Subject to such restrictions as may be

imposed by the Board the Marketing Committee shall discharge all
the functions of the Board in regard to the Coffee Marketing
Scheme as set forth in the Act and the Rules.
(c) Research Committee: Subject to such restrictions as may be

imposed by the Board, Research Committee shall discharge all the
functions of the Board in regard to the promotion of agricultural
and technological research in the interest of the coffee industry in
India.
(d) Executive Committee: The Executive Committee in addition

to such functions as have been specifically assigned to it under
these, rules, discharge any other functions of the Board in regard to
matters not specifically assigned to the Propaganda, the Marketing
or the Research Committee or any other Committees which may be
constituted by the Board.
[(e) Development Committee: Subject to such restrictions as may

be imposed by the Board, the Coffee Development Committee shall
discharge all the functions of the Board in regard to measures that
may be undertaken for the development of small holdings of coffee
estates.
[(f) Coffee Quality Committee: Subject to such restrictions as

may be imposed by the Board, the Coffee Quality Committee shall
discharge all the functions of the Board in regard to improvement
in the quality of the coffee produced in India.
19.Power to call Committee Meetings;- (1) The Chairman of a

Committee may, at any time, call a meeting of his Committee and
shall do so, if a requisition for that purpose is presented to him by
atleast half the total number of members of the Committee.
(2) At least ten clear days before the date of any meeting of a
Committee, notice of the time and place of the intended meeting,
signed by the Chairman of the Committee or the Secretary to the
Board, shall be sent to the Government of India (in the appropriate
ministry) and left a or posted to address of every member of the
Committee.
Provided that in case of an emergency, a special meeting may be
summoned, at any time, by the Chairman of the Committee who
shall inform, in advance the Government of India (in the
appropriate Ministry) and Members of the Committee, of the
subject matter for discussion and the reasons for which he considers
the matter to be urgent. No ordinary business shall be transacted at
such special meeting.
[20. Quorum;- No business shall be transacted at a meeting of a

Committee unless there are present half the number of members
constituting the Committee including the Chairman if present or the
next lower whole number where the Committee consists of an odd
number of members including the Chairman.
(2) If at any meeting the number of members present is less than

the required quorum, the person presiding shall adjourn the meeting
to a date not later than 3 days from the date of the meeting
informing the members of the Committee of the date, time and
place of the adjourned meeting; and it shall thereupon be lawful to
dispose off at such adjourned meeting the business intended to be
transacted at the original meeting, irrespective of the number of
members of the Committee present.
21. Absence from meetings of a Committee;- Any member of a

committee absenting himself from two consecutive meetings
without leave of the Chairman and, in any case , from three
consecutive meetings shall cease to be a member of the
Committee.
22. Filling of casual vacancies;- (1) Any casual vacancy on a

Committee shall be filled by the remaining members of the
Committee from amongst the members of the Board at the next
meetings of the Committee.
(2) A person appointed in a casual vacancy shall hold office so long

as the member whose place he fills would have been entitled to
hold office, if the vacancy had not occurred.
Provided that when a member goes on leave, the person co-

opted shall hold office, until the member returns from leave.
23. Presiding over Committee Meeting;- The Chairman of a
Committee shall preside at every meetings of the Committee, at
which he is present, if he is absent; the Vice-Chairman, if he is a
member of the Committee, or the member nominated by the
Chairman shall preside; but if the Chairman of the Committee or
the Vice-Chairman or the member so nominated is absent, the
member present at a meeting shall elect on of their member to
preside at that meeting.
24. Agenda;- The Chairman of a Committee shall cause to be

prepared and circulated to the Govt. Of India (in the appropriate
Ministry)and among members of the Committee at least seven
days before a meeting of the committee, a list of business to be
transacted at that meeting.
(2) No business not in the list of business shall be taken up without

the permission of the Chairman.
25. Business by Circulation;- (1) Questions which Committee is

required to take into consideration shall be referred, to the members
of the Committee either at its meetings or by circulation of papers,
if the Chairman of the Committee so directs and copies of all
papers so placed at the meetings or so circulated to members shall
be sent to the Govt. Of India ( in the appropriate Ministry)
(2) any proposal or resolution so circulated and approved by the

majority of members who have recorded their views in writing shall
be as effectual and binding as if such proposal or resolution were
decided by a majority of votes at a meeting.
Provided that -
(a) at least a majority of the members of Committee have recorded

their views on the resolution or proposal;
(b) the paper need not be sent to any member who is absent from
India;
(c) the Chairman of the Committee shall have the power to require
any such decision to be placed before the Board for its
consideration and the implementation of the Committee's decision
shall be deferred till the matter is considered by the Board.
(d) When a question is referred to by circulation of papers, any

two members of the Committee may require that the question be
considered at a meeting of the Committee and thereupon such
subject shall be included on the agenda for the next meeting of the
Committee.
(3) When any business is so referred to the members of a

Committee by circulation, a period of not less than seven clear days
shall be allowed for receipt of replies from members. Such period
is to be reckoned from the date on which notice of business is
issued.
(4) If a resolution or proposal is circulated the result of the

circulation shall be communicated to all the members and to the
Govt. of India (in the appropriate Ministry)
(5) All decision on questions arrived at by circulation of papers

shall be placed at the next meetings of the record.
26. Voting;- (1) Every question at a meeting of Committee shall

be decided by a majority of the members present and voting on that
question .
(2) [ ]
27. Record of Business;- (1) A record shall be maintained by the

Secretary to the Board of items of business transacted by the Board
and of Committees thereof and copies of such records shall be
submitted to the Central Government.
(2) The recorded of business transacted at every meetings of the

Board and of the Committees shall be signed by the Chairman or
the member presiding at such meetings.
(3) When any business is transacted by circulation of papers a

record is the business so transacted shall be signed by the Chairman
of the Board or the Committee as the case may be directing the
circulation.
[28. Travelling and other allowances to members of the Board

and its Committees;- (1) A member of the Board or `any
committee other than a Government servant shall be entitled to
drawing respect of any journey performed by him for the purpose
of attending a meeting of the Board or of a duly constituted
Committee thereof or for the purpose of discharging any duty
assigned to him by the Board or the Committee concerned,
Travelling allowance and Daily Allowance at the highest rates
admissible to Govt. Servants of the first grade under the rules and
orders made by the Central Govt. And for the time being in force.
(2) In case of any journey performed by an official of the Central or
the State Government especially nominated by the Board to serve
on any adhoc Committee or any other Committee or to attend to
any other business of the Board, the Travelling and Daily
Allowance admissible to him shall be payable by the Board, at
rates admissible to him under the rules of the Government under
which he is for the time being employed.
(3) No travelling or Daily Allowance shall be allowed to a member

of the Board or of any committee unless he certified that he has not
drawn any Travelling or Daily Allowance from any other source in
respect of the journey and halt for which the claim is made.
(4) Travelling Allowance shall be payable from the usual place of

residence of a member of the Board or any of the committees to
the place of the meeting or the place where he has gone to attend
to any business of the Board and back to his place of residence.
Provided that when the journey commences from or the return

journey terminates at any other place, the Travelling Allowance
shall be limited to the amount that would have been payable had the
journey commenced from or terminated at the usual place of
residence, or to the amount payable in respect of the actual journey
undertaken whichever is less.
• The present highest rate of road mileage admissable to the non

official members of the Board under the rules and orders made
by the Central Covernment and for the time being in force is at
the rate of Rs.1.30 paise* per kilometer on the actual mileage
travelled by road in the public interest. The present highest rate
of Daily allowance admissible to the Government servents of
the first grade under rules and orders made by the Central
Government and for the time being in force is Rs.49/-*.
(O.M.No.19030/2/81-E.IV dated.19.11.1981)
(O.M.No.19043/2/82-E.IV dated.06.01.1983)
The present highest rate of Daily allowance admissible to the

Government servants of the first grade under rules and orders made
by the Central Government and for the time being in for is as under
***
Rates of D.A for halt at various stations are given below;

‘A’ Class cities and ‘B’ Class cities and All other places
specially expensive expensive localities
localities
Ordinary Hotel Ordinary Hotel Ordinary Hotel
Rs.80/- Rs.175/- Rs.65/- Rs.150/- Rs.60/- Rs.135/-
G.I.O.(1) S.R.51
D.A for stay in a hotel or other establishment providing

boarding/and/or lodging at sheduled tariff.
D.A claimed in excess of the ordinary rate should be supported by voucher of

the hotel etc., for lodging charges.
G.I.O.(1) S.R.51
Provided further that in special circumstances and with the

previous approval of the Central Government, the Chairman may
grant Travelling Allowance from places for the than usual place of
residence of a member.
Conveyance Allowances:- No Conveyance Allowance for

attending meetings of the Board or any of the Committees of any
other business of the Board, shall be paid to those members of the
Board or any of the Committee who draw Travelling or Daily
Allowance;
Provided that a members of the Board or the Committees who is

resident at place where meeting of the Board or any of the
Committees is held or where any other business of the Board is
transacted, may be paid the actual expenditure incurred on
conveyance by him subject to maximum of Rs.10 per day.
29. Revision:- (1) The Central Government may, for reasons to be

recorded in writing, review any decision of the Board or its
Committees and pass such order in the matter as it thinks fit.
(2) A copy of such order of the Central Government shall

thereupon be sent to the Board or the Committee concerned, as the
case may be, by the Central Government.
(3) On receipt of a copy of the order as aforesaid, the Board or

the Committee, as the case may be, may make a representation to
the Central Government against the said order and the Central
Government may after considering the said representation, either
cancel, modify or confirm the order passed by it under Sub-Rule (1)
or take such other action in respect of the matter as may in the
opinion of the Central Government be just or expedient, having
regard to all the circumstances of the case.
CHAPTER IV
The Board and its establishment
30. Salaries and Allowances:- The salaries, allowances, pension,

leave and other contributions, if any, of the Chairman and other
officers appointed by the Government under Section 9 shall be met
from the Board's funds.
31. Board’s Establishment:- (1) The Board shall, from time to

time, subject to scrutiny at budget stage, sanction such other
establishment as is not covered by Section 9 and may, lay down the
method of recruitment, the conditions of service, the pay and
allowances of all such officers and servants to be employed by it
provided that the Board shall, without the previous sanction of the
Central Government, create any post maximum salary of which
exceeds. Rs.5,000/- per mensum in the case of technical posts and
Rs.4,500/- per mensum in the case of non-technical posts or make
appointments thereto or frame recruitment rules thereof.
Provided also that the confirmation of direct recruit in a post, the

maximum salary of which exceeds Rs.1,300/- per mensum in a key
post identified by the Board in consultation with the Central
Government shall be made with prior approval of the Central
Government.
Provided further that in case of exigencies, temporary posts

which would need to be created in the interests of Board and the
maximum salary of which posts does not exceed Rs.5,000/- per
mensum in the case of technical posts and Rs.4,500/- per mensum in
the case of non-technical posts may be created by the Chairman and
appointments against them be made by the Chairman or other
officers of the Board as hereinafter specified.
(2) (a) Filling in posts by Direct Recruitment:- (i) All vacancies

in the rank of officers to be filled by direct recruitment, shall be
advertised and all vacancies in other ranks shall be notified to the
Regional Employment Exchange concerned.
(ii) A statement of all applications received from candidates and

recommendations from the Employment Exchange shall be made
and placed before the authorities competent to make appointments
under these rules.
(iii) In respect of all vacancies in posts of Class IV, appointments

shall be made by the Chief Coffee Marketing Officer, Director of
Propaganda, Director of Research or the Secretary as the case may
be, from the statement of applicants placed before them. The Chief
Officer of the department concerned may delegate, with the approval
of Chairman, to any officer of the department such of the powers
under this rule as he may deem fit.
(iv) In respect of all vacancies in Class III, appointments shall be

made by the Chairman from the statement of applicants placed
before him and he may delegate to the Chief Officer of the
department before concerned such of his powers under this rules as
he deem fit.
(V) In respect of posts of all officers, other than those mentioned

in Section 9 and whose maximum salary exceeds Rs.5,000/- per
mensum in the case of technical posts and Rs.4,500- per mensum in
the case of non-technical posts, appointments shall be made by the
Chairman from the statement of applicants placed before him in
consultation with the Executive Committee.
(2) (b) Filling of posts by Promotion:- (i) If a vacancy in respect

of posts of Class IV in Board's establishments is to be filled up by
promotion, the cases of candidates for promotions shall be examined
by the Chief Officer of the Department concerned and appointments
shall be made by him.
(ii) If a vacancy in respect of post of Class III in Board's

establishment is to be filled up by promotion, the cases of all the
candidates for promotion, shall be examined by the Chairman and
appointments shall be made by him.
(iii) If a permanent vacancy in respect of sanctioned posts of

officers in the Board's establishment the maximum salary of which
does not exceed Rs.5,000/- per mensum in the case of technical
posts and Rs.4,500/- per mensum in the case of non-technical posts
is to be filled up by promotion, the cases of all the candidates
eligible for promotion, shall be examined by the Chairman and
appointment made by him.
(iv) If permanent vacancy in respect of sanctioned posts of

officers in the Board's establishment, not covered by Section 9 or the
maximum salary of which exceed Rs.5,000/- per mensum in the case
of technical posts and Rs.4,500/- per mensum in the case of non-
technical posts is to be filled by promotion, the cases of all the
candidates eligible for promotion, shall be examined by the Board
and appointments shall be made by it subject to the approval of the
Central Government.
(2) (c) Filling of temporary vacancies in sanctioned posts:-
[Filling of temporary vacancies in respect of sanctioned posts

which are not covered by Section 9 shall be filled by the Chairman
in respect of Officers and Class III staff, and by other officers to
whom the powers have been delegated in respect of Class IV staff
and the pay of the incumbents in such temporary vacancies shall be
regulated in accordance with the Fundamental Rules and
Supplementary Rules applicable to Government servants of Central
Government]
.
(3) Posting and Transfer:- Postings and transfers of all officers
and servants of the Board shall be made by the Chairman who may
delegate this power subject to such conditions as he thinks fit to the
other officers of the Board.
(4) Pay, Leave and allowances including Travelling allowances:-
(i) The pay, leave and allowances of all officers and servants
appointed by the Board shall, so far as may be, regulated in
accordance with the Fundamental Rules and Supplementary Rules
applicable to Government servants of the Central Government. The
Chairman may grant leave to all such officers and servants and may
also delegate this power to the officers of the departments subject to
such conditions as he thinks fit.
(ii) The pay, leave and allowances including Travelling

Allowances of officers mentioned in Section 9 also permanent
Government officers lent or transferred to the Board shall be
regulated by the Central Government.
Note:
The pricipal rules were published vide No.S.R.O. 1966 in the
Gazette of India Extra-ordinary dated the 1st August, 1955 and were
subsequently
Amended by:
1. Notification No.G.S.R.359 Published in the Gazette of India
dated.24.03.62.
2. Notification No.G.S.R.551 published in the Gazette of India
dated.22.04.67
dated.23.12.67.
dated.01.05.71.
dated.11.03.72.
dated.21.04.72.
dated.05.08.72.
dated.02.09.72.
dated.07.04.73.
dated.14.08.76.
dated.21.06.80.
dated.25.02.85.
dated.17.01.87.
(iii) [ ]
[(4A) Grant for advance for building etc.,of house:-
(i) An advance for building a new house (including purchase of

land for the purpose) or for purchase of ready built house or the
enlarging living accommodation of an existing house owned an
officer (Other than one appointed by the Central Government) or
other employee of the Board of for redemption of any earlier loan
taken for the purchase or construction of new house may be granted
to such officer or employee at such rates and on such conditions as
may be determined by the Board in conformity with the rules of the
Central Government for the time being in force regulating the grant
of advances for building etc., of houses of Central Government
servants.
(ii) The Advance specified in (I) above may be granted for the
same purpose to an officer of the Board appointed by the Central
Government also, at such rates and on such conditions as may be
admissible to officers holding comparable posts under the Central
Government in accordance with the rules of the Central Government
for the time being in force.
The grant of advance is subject to the availability of funds under

the head "Advances recoverable bearing interest."
(iii) the Board, the executive Committee and the Chairman shall
have power to grant advances upto the amounts specified below:
Board over Rs.50,000

Executive Committee between Rs.30,000 & 50,000
Chairman upon Rs.30,000
[(4B) Grant of advances for the purchase of motor car, motor

cycle and bicycle:- Advances for the purchase of mot car, motor
cycle and bicycle may be granted to the officers and employees who
are in permanent employ of the Board at such rates and conditions
as may be admissible to officers and employees holding comparable
posts under the Central Government in accordance with the rules of
the Central Government for the time being in force. Subject to the
concurrence of the Central Government, permanent Government
servants on deputation to the Board will also be eligible to the grant
of such advances from the Board in accordance with the aforesaid
rules. The grant of advances is subject to the availability of funds
under head "Advance recoverable bearing interest".
[(4C) Notwithstanding anything contained in Class (i) of Sub-Rule

(4) deduction may be made from the salaries of officers or other
employees of the Board referred to in the Sub-Clause with the written
authorisation of such officer or employee for payment of any
premium on his life insurance policy to the Life Insurance
Corporation of India established under the LIfe Insurance
Corporation Act 1956 (31 of 1956).
[(4C) Grant of winter clothing advance:- An advance for the

purchase of winter clothing may be granted to the staff of the Board
at such rates and on such conditions as may be, determined by the
Board in conformity, as far as may be, with the rules of the Central
Government for the time being in force, regulating the grant of
advances to Central Government servants.
[(5) Penalties:- (1) The following penalties may for good and
sufficient reasons be imposed on the officers and servants of the
Board, namely:-
(a) censure:
(b) recovery from pay of the whole or part of any pecuniary loss
caused to the Board by negligence or breach of orders:
(c) with holding of increments or promotion;
(d) reduction to a lower rank in the seniority list or to a lower post or

to a lower stage in a time-scale;
(e) removal;
(f) dismissal;
(g) compulsory retirement
(ii) the Chairman may impose any of the said penalties in respect
of all officers and servants whom he is empowered to appoint and
may delegate the powers under this rules officers under
him such extent as he deems fit.
(iii) The Chairman may impose any of the penalties specified in

Sub-Clause (a) in Sub-Clause (i) on other officers and servants of the
Board and also on officers mentioned in Section 9 but shall intimate
the action taken by him in this regard in respect of the letter to the
Government of India in appropriate Ministry.
(iv) the Board may impose the penalties specified in Sub-Clause

(b) to (g) of Clause (i) in respect of the officers and servants
appointed by it and may delegate these powers to the Executive
Committee to such extent as it deems fit subject to the conditions,
namely-
(a) that no person shall be removed or dismissed from or reduced in

the office, the maximum salary of which exceeds Rs.1,300 per
mensum without the sanction of the Central Government.
(b) that not person shall be removed, dismissed or reduced by an

authority lower in ranks than the authority empowered to appoint him
substantively to the post he holds;
(c) that no person shall be removed, dismissed or reduced without

giving him reasonable opportunity to show cause against such action;
(d) that these powers shall not be exercised in respect of officers

mentioned in Section 9 and permanent Government officers
transferred to the Board.
Provided that no punishment shall be inflicted on Government

officers lent to the Board except by the Government concerned.
(6) The Board may delegate its powers under this rule to the
Executive Committee.
31A. Person cum – gratuity benefits to employees of the Board;
Every employees of the Board, other than an employee who is on
deputation to the Board, shall be entitled to pension and death-cum-
retirement gratuity (including family pension, extraordinary pension
and commutation pension) at such rates and under such conditions as
are prescribed in the Liberalised Pension Rules and the Family
Pension Scheme for central Government Employees, 1964 as
amended from time to time or such other orders of the Central
Government regulating grant of pension and gratuity to its employees
of the corresponding grade.
Provided that any such employee who was in the service of the
Board before the 1st April 1963, and is continuing in such service on
the 18th January 1965, may, within three months from the date last
mentioned, opt, in writing, for the benefits of the Coffee Board
Provident Fund Scheme, in which case nothing in this rule shall
apply to such employee;
Provided further that where the contributory Provident accounts of

any person who was in the service of the Board on the 1st April 1963,
and who ceased to be in such service after that date but before the
18th January 1965, due to retirement on superannuation or death have
not been settled before the date last mentioned then, such person shall
be deemed to have opted to be governed by this rule.
Provided further that where a person, who was in the service of

the Board on 1st April 1963 but has ceased to be in the said service
before the 18th January 1965 and whose provident fund accounts
have been settled in agreeable to refund to the Board the Board's
contribution paid to him, such person shall also be deemed to have
opted for pension.
Explanation :- [ ] In this rule and in rule 31 (B) (i) "liberalised

Pension Rules" means the Liberalised Pension Rules of the Central
Government, for the time being in force, regulating the grant of
pension and gratuity to its employees.
[ ] (ii) "Family Pension Scheme" means the Family Pension Scheme

1964 of the Central Government for the time being in force,
regulating the grant of family pension to the persons entitled
thereunder.
[ ] ["31B-Not with standing the provisions of Rules 31-A if in the

case of an employee of the Board who comes under the purview of
the Employees' Provident Funds, and Family Pension Fund Act 1952
(19 of 1952), the amount payable to him upon his ceasing to be the
employee of the Board by way of pension or Death Cum-Retirement
Gratuity under the Liberalised Pension Rules be less than the amount
that shall be payable if he were a member of the Employees'
Provident Fund Scheme, the Board shall pay the different to the
member as compensation out of the Pension Fund, such payments
may be sanctioned by the Chairman."]
CHAPTER
FINANCES AND ACCOUNTS OF THE BOARD
32. Power to incur Expenditure: - (1) Subject to the Provisions

of the Act and these rules, the Board may incur such expenditure as it
may think fit and write off losses or waive recoveries upto Rs.10,000
for losses due to theft, fraud and negligence and Rs.20,000 for other
cases in any single case.
Provided that save with the previous sanction of the Central

Government, no expenditure shall be incurred which is in excess on
the allottment under any head in the budget sanctioned by the Central
Government;
Provided further that the Central Government may be standing

instructions permit such expenditure generally within limits that may
be laid down by it.
(a) The Board may delegate the powers under Sub-Rule (1) to the
Chairman or any of its committees or its officers.
(2) (a) Reappropriations within and between the head of

expenditure specified in sub-clause (i) to (vi) of clause (g) of sub-rule
(2) of Rule 33 may be made by the Board and the Board may
delegate its powers in this behalf to the Chairman or to any of its
Committees to such extents as it may think fit.
(b) Reappropriations within and between the other heads of

expenditure shall not be made save with the previous sanction of the
Central Government or within such limits as may be laid down by its
in this behalf.
(3) Subject to such restrictions as may be imposed by the Board the

Executive Committee shall exercise all powers of the Board in regard
to the control and disposal of the General Fund and the Marketing
Committee shall exercise all powers of the Board in regard to the
control and disposal of the Pool Fund; other Committee shall also
exercise all powers of the Board in regard to the control and disposal
of such fund as are placed by the Board at their disposal.
33. Budget Estimate: (1) The Board shall in each year prepare a
budget for the General Fund for the ensuing financial year and shall
submit it for the sanction of the Central Government on or before
such date as may in this behalf be appointed by that Government.
(2) The budget shall be in such form as the Central Government

may direct and shall include a statement of:-
(a) the estimated opening balance
(b) the estimated receipts from the Custom Duty on all coffee
levied under Section 11
(c) the estimated receipts from issue of licences and from other
sources
(d) loans received from Central Government under Rule 38A
(e) recovery of loans granted under Rule 38-B;
(f) interest of other charges on loans;
(ff) recovery of advances granted under sub-rules (4A) to (4D)

or Rule 31)
(g) the proposed expenditure classified under the following

heads or such other heads as the Central Government may direct
namely:
(i) ) Administration of the Board,

(iii Development,
(ii) Research,
(iv) Propaganda,
(v) Publicity in India,
(vi) Publicity outside India,
(vii) Labour welfare,
(viii) Pension,
(ix) Works,
(x) Payment of advance under Sub-rule (4A) to
(4D) of Rule 31,
(xi) payment of loans granted under rule 38-B,
(xii) interest or other charges on loans taken from
the Central Government
(xiii) repayment of loans taken from the Central
Government,
(xiv) others.
(3) The Proposed expenditure under each head shall be further

classified under the following Sub- heads.
(i) Pay of Officers

(ii) Pay of Establishment
(iii) Allowances, honoraria etc
(iv) Other charges, contingencies etc
(4) Supplementary estimates of expenditure, if any, shall be

submitted for the sanction of the Central Government in such form
and on such dates as may be directed by it in this behalf.
(5) The High Commissioner for India may functions Agent of

the Board for promotion of sale of coffee in the United Kingdom,
and may be authorised by the Board to incur such expenditure as he
deems fit subject to the budget provision for the purpose. He shall be
supplied with funds by the Secretary by remittance from the General
Fund Account, Before the close, of each year he shall prepare budget
estimates for the ensuing year showing the opening balance, receipts
expenditure and closing balance and send them to the Secretary for
adoption by the Board and submission to the Central Government for
approval.
34. Accounts of the Board:- The Board shall maintain separate

accounts for the General and Pool Funds.
(1) General Fund:- (i) In respect of General Fund relating to each

year for which budget estimates are prepared, the Board shall
maintain accounts of receipt and expenditure in such form as may be
prescribed.
(ii) The audited statement of receipts and expenditure for each

period together with the auditor's report therein shall be submitted to
the Central Government.
(iii) After the close of each year, the High Commissioner shall send
to the Secretary and audited account of his receipt and expenditure.
The Secretary shall place the statement before the Board and
afterwards transmit it to the Central Government.
(v) The accounts of the receipts shall be shown under the following
heads:-
(a) Moneys received under Section 13(1);
(b) Moneys received and the Provision to Section 32 (2);
(c) Loans received from the Central Government under

Rule – 38A;
(d) Recovery of loans granted under Rule 38-B;
(e) Interest or other charges on loans;]
(f) Fees levied and collected by the Board under the Act]
(ff) Recovery of advance granted under Sub-rules (4/a) to

(4D) of Rule 31;]
(vi) The opening balance if any, shall also be stated as

such separately;
(vii) Accounts of expenditure shall be shown under the

following heads:-
(a) Administration of the Board.
(b) Measures taken for promoting the cultivation and

curing and/or processing of Indian Coffee.
(c) Measures taken for promoting the sale and increasing

the consumption in India and elsewhere of India
Coffee.
(d) Measures taken for Promoting agricultural and

technological research in the interest of coffee
industry in India.
(e) Statistics.
(f) Grants under Section 31 (2)(c) and (e),
(g) Payment of loans granted under Rules 38-B,

(h) Repayment of loans taken from the Central
Government under Rule 38-A.
(I) Payment of interest or other charges on loan.
(j) Miscellaneous.
(jj) Payment of advances under Sub-rules (4A) to (4D) of

Rules 31;
(viii) The closing Balance of the year shall be shown at the

foot of the accounts of the expenditure side.
2. Pool Fund:- (1) The accounts of the Pool Fund

shall be maintained separately for each, season and in
such form as the Board may direct and shall show
inter alia -
(a) The amount realised on account of the sale of coffee

from surplus pool.
(b) The total sum distributed to registered owners,
(c) The expenditure on account of curing coffee received

in the surplus pool,
(d) The amount spent in purchasing coffee from registered

owners.
(e) [ ]
(f) Expenditure on account of the administration of the

surplus pool for which budget estimates are prepared
and got approved by the Board, and
(g) Expenditure on account of the marketing of coffee

deposited in the surplus pool.
(ii) The audit report on the account of the Pool Fund

together with the explanatory notes shall be put up to
the Board for approval.
35. Deposit of Funds of the Board in Banks and the Investment

of such Funds: - Money required for current expenditure of the
Board with exception of petty cash and surplus moneys shall be kept
in an current account in such Banks as the Central Government may
approve.
(2) Any funds not required for Current Expenditure of the

Board may be placed in deposit with the Central Government in
public Account of India or invested, with the State Bank of India, its
subsidiaries or any other nationalised bank and such funds of the
Boards as are not derived from the Central Government grants or
from the Collection of (Duty of Customs referred to in Section 11)
of the Act may also be deposited with such other banks as may be
approved by the Central Government for this purpose. Provided that
the moneys in the Board's provided funds and pension fund not
required for current expenditure may be invested in any of the
Government Securities or kept deposit with the State Bank, its
subsidiaries or any other nationalised banks . Explanation for the
purpose of this sub-rule 'Nationalised Bank’ means of corresponding
new banks as defined in the Banking Companies (Acquisition and
transfer of undertakings) Act, 1970 (5 of 1970).
(3) The placing of the money in deposit with the Central

Government or in any of the banks referred to sub-rule (2) shall
require the sanction of the Chairman.
(4) Payments by or on behalf of the Board shall be made in cash

or by cheque drawn against a current account of the Board.
(5) The cheque referred to in Sub-Rule (4) and all orders for
making deposits or investments or for the withdrawal of the same or
for the disposal in and other manner of the General Pool Funds of
the Board shall be signed;
(i) in respect of the General Fund by the Chief Accounts Officer or
any other officer duly authorised by the Board in this behalf and
countersigned by the Chairman or any other officer duly authorised
by him.
(ii) in respect of the Pool Fund by the Chief Accounts Officer or

any other officer duly authorised by the Board in this behalf and
countersigned by the Chairman or any other officer duly authorised
by him.
(6) The Chairman may also authorise withdrawal from the

General or Pool Fund account for opening subsidiary current
account in Banks approved by the Central Government in the
official designation of the Director of Research or any other officer
authorised by the Director of Research or other Marketing Officers
to enable them to make payments.
36. Contracts:- (1) [The Board may enter into contracts for the
discharge of the duties entrusted to it under the Act provided that
every contract which involves expenditure in excess of twenty lakhs
rupees shall require the previous sanction of the Central
Government.
(2) The Board may delegate to the Chairman or any Committee

the power to enter into contracts to such extent as it deems fit.
(3) The Board may issue subsidiary orders authorising the officers
of the Board of its agents to execute contracts specifying the clauses
of contracts and the condition subject to which they may be
executed.
(4) Contracts shall not be binding on the Board unless they are
executed by the Chairman or any officer or agent authorised by the
Board with the previous approval of the appropriate authority
concerned.
(5) Neither the Chairman nor any officer of the Board nor any
member or agent of the Board shall be liable for any assurance or
contracts made by the Board but any liability arising under such
assurances or contracts shall be discharged from the moneys at the
disposal of the Board.
36-A. Financial Transactions in General:- [Except as otherwise

provided in these rules the provisions of the Central treasury Rules
and the General Financial Rules of the Central Government shall, as
far may be and subject to such modifications or adoptions as may be
made by the Board therein, apply to all financial transactions of the
Board".]
CHAPTER VI
Powers of the Board and its Chairman
37. Restriction on Delegation of Powers:- The Board shall not

delegate any of the following powers to the Committees:-
a) the power to sanction non-recurring expenditure in excess of
Rs.2,00,000 in respect of any single item and recurring expenditure
which involves an outlay of more than Rs.2,00,000 in a year (on any
single item)
b) the power to adopt the budget estimates of the Board on its

behalf;
c) the power to sanction expenditure to be incurred outside India

in excess of Rs.10,000 in respect of any single item;
d) the power to re-appropriate estimated savings in excess of

Rs.20,000 in the case of any single item ; and
e) the power to write off or waive recoveries in excess of

Rs.10,000 in any case.
38. Borrowing Powers:- The Board shall have power to take

money on loan from a bank or banks approved by the Central
Government against the securities held by such banks on behalf of
the Board or against the security of Pool Fund or on the security of
the coffee delivered or treated as delivered for inclusion in the
surplus pool for purposes for which it is authorised to expend money
from the General Fund or the Pool Fund upon the following
conditions namely:-
(a) no such loan for the General Fund or the Pool Fund shall be
taken without the matter being placed before the Executive
Committee of the Board in respect of a loan obtained for the General
Fund and before the Marketing Committee of the Board in respect of
a loan obtained for the Pool Fund;
(b) every such loan shall be repaid with two years from the date on
which it was taken; and
(c) the total of such loans outstanding at any one time shall not
exceed rupees. Two hundred Seventy Five Crores.
38-A:- The Board shall also have power to take money on loan
from the Central Government on which terms and conditions as may
be determined by the Board and said Government for the purposes
for which it is authorised to expend money from the General Fund
under Clauses (b) to (d) of Sub-Section (2) of Section 31;
Provided, however, that no such loan shall be taken without the

matter being placed before the Executive Committee.
(2) The amount borrowed as aforesaid shall be credited to the
General Fund.
38-B: (1) The Board may on such terms and conditions as may be
laid down by it from time to time and approved by the Central
Government.
(a) lend moneys to registered owners, to planters, pulping co-

operative societies and to co-operative societies for processing or
curing coffee, and
(b) purchase shares in the societies referred to it Clause (a)
(2) The Board may delegate its powers under Sub-Rule (1) to the
(Development Committee) the Chairman or any officer of the Board
to such extend and upon terms as may be fixed by it.
38-C
38-C:- (1) The Board may fix a schedule for each year for payments
to be made under Section 34 for coffee delivered by any registered
owner for inclusion in the surplus Pool and may, on the request of
any registered owner, make any payment in advance of the date
when it falls due under the schedule so filled, but in the case of any
such advance payment to a registered owner, he shall be required to
pay interest at such rate as may be determined by the Board until
such payment falls due in accordance with schedule.
(2) The advance or accelerated payment so made (together with

interest due thereon) shall be first charge upon the moneys incoming
into the hands of the Board at the credit of the registered owner
(guarantee of this aid) and shall be recoverable there from by
deduction and appropriation.
39. Powers of the Chairman:- (1) The Chairman shall be

responsible for the proper functioning of the Board and the
Committees thereof and the implementation of the decisions arrived
at by the Board or by the Committees and the discharge of the duties
imposed on him by these rules or under the Act.
(2) The Chairman shall be the principal executive officer of the

Board and shall exercise administrative control over all departments
and officers of the Board.
(3) Subject to such delegations as may be made by the Chairman to

such other officer or officers as may be appointed for the purpose of
this rule, the Chairman shall:
(a) cause all important papers and matters to be presented to the
Board as early as practicable;
(b) issue direction as to the method of carrying out the decisions of

the Board
(c) grant or subject to a resolution by the Board authorise some other

person to grant, receipts on behalf of the Board for all moneys
received under the Act;
(d) maintain or cause to be maintained an account of the receipts and

expenditure of the Board ; and
(e) present an annual draft report on the working of the Board to the
Board for approval and submit the report in the form approved by
the Board to the Central Government.
(4) Subject to the budget provision, the Chairman may sanction
expenditure on contingencies, supplies and services and purchase of
articles required for the working of the office of the Board and
required for the execution of measures in furtherance of the objects
of the act:
(4A) The Chairman shall have the powers of the Board under section
38B and Sub-section (2) of section 40 of the Act.
Provided that the Chairman may be order in writing delegate any
of his powers under this sub-rule to any other officer or officers of
the Board.
(5) The Chairman shall have, in addition to such powers as may

be delegated to him by the Central Government or the Board in
accordance with provisions of the Act.
(i) (a) Power to inspect by himself or by any officer of the Board

authorised by him in this behalf or to appoint agents for the purpose
of inspecting any registered estate or licensed curing establishment
or any place where coffee is stored or exposed for sale and to
examine the books of any such estate or establishment or place;
(b) Power to check the composition blends manufactured by

different roasters and to issue certificates to them indicating the
composition and to inspect himself or to authorise his subordinate
officers to inspect any roasting establishment and to examine
accounts and records of any such establishment and to collect
samples of blends for inspection;
(ii) Power to issue a permit for the re-importation of Indian Coffee

of India;
(iii) Power to issue licences for sale of uncured coffee or in respect

of curing establishment;
(iv) Power to require the Board or any Committee to defer taking

action, pending a reference to the Central Government, on any
decision on any of the following matters:
(a) division of the crop of a registered estate on the basis of

percentage to be allotted to each estate;
(b) administration and marketing of the surplus pool
(c) issue of licences to registered owners for the sale on the Indian
market of uncured coffee.
(d) licensing of coffee curing establishments,
(e) fixing of a differential scale for valuing coffee
(f) modification or cancellation of contracts
(g) borrowing of any money by the Board, and
(h) any other matter which in his opinion is not in the public interest
or against the declared policy or intention of the Central
Government.
(i) such other power as may be delegated to him by the Board.
Provided that all or any of the powers specified in Clauses (i)

(ii) and (iii) and Sub-Clauses (a) (b) (c) and (d) of Clauses (iv) may
be delegated by the Chairman to the Chief Coffee Marketing Officer
by an order in writing either generally of within a prescribed
jurisdiction.
Provided further that where a matter has to be disposed off by

the Board or a Committee and the decision cannot wait till a
meeting of the Board or the appropriate Committee, as the case may
be is held or till completion of circulation of papers, the Chairman
may take a decision himself and after taking decision thereon ( he
shall formally place the decision so taken before the Board or the
Committee, as the case may be).
(6) The Chairman shall have power to sanction honorarium upto

Rs.5,000/- per annum in each case of assessment work done for
coffee samples and Rs.1000/- per annum in each case for other
purposes like meritorious work and special item of work not forming
a part of one's official duties.
Chapter VII
Marketing & Licensing
40. Purchasing and Selling Coffee by the Board in the internal

market:- The Board may, and if so directed by the Central
Government shall purchase coffee from the Indian Market, when the
Board, or as the case may be the Central Government is satisfied.
(i) that the amount of coffee available for sale in the Indian market
exceeds or is likely to exceed the estimated demands the Indian
market to such an extent as to cause or threat a serious fall in prices ;
or
(ii) that there is not enough coffee of the kind or quality in the
surplus pool to enable the Board to fulfil the demands for the export
of coffee.
2). The Board may release coffee from the surplus pool for sale
in the Indian market in its discretion and shall do so:-
(i) When it is satisfied that the amount of coffee available in the

internal market according to its kind and quality falls short of the
requirements of the Indian market ; or
(ii) When necessary directions are issued by the Central
Government.
(iii) ["The Board shall sell the coffee from the surplus pool by
common Auction for internal market and for export purpose at such
intervals and on such dates as the Board may fix in this regard.
Provided that the interval between any two auctions, except with
the prior approval of the Central Government, shall not exceed thirty
days"]
41. Appointment of Agents:- The Board may appoint any person
or body of persons to act as its agents for all or any of the following
purposes: namely:-
(a) marketing of coffee in the Indian market for for export

(b) storing of coffee which is in the custody of the surplus pool
(c) supervising the curing of coffee by licensed curing
establishments and the deliveries of cured coffee by such curing
establishment to the surplus pool.
(d) collecintg of coffee from planters for delivery to the surplus
pool; and
(e) making payments from the funds received from the Board to
planters on coffee delivered.
42. Remuneration to Agents:- The Board shall fix the

remuneration to be granted to the agents for the services rendered by
them.
43. [Licence for sale of Uncured Coffee from an Estate:- The

Licence to be issued by the Board for the sale of uncured coffee for
the whole amount of coffee covered by free sale quota of the estate
or for any lower quantity shall be in Form A. No fee shall be
payable for the licence".]
44. Export of Coffee:- (1) The Board may authorise the export of
coffee under Section 20 under such terms and conditions as it may
deem fit in any of the following cases, namely:
(i) [coffee sold by the Board in pursuance of its functions

under Section 26;
(ii) roasted or prepared coffee .
(iii)"coffee of free sale quota allotted to the estate under Section 24.
(iv) coffee exempted from inclusion in the surplus pool under the
second proviso to sub-section (1) of Section 25".]
(2) The Board shall issue orders for the export of coffee and permits
for re-importation of exported coffee in Forms C and D respectively.
45. Licensing of Curing Establishment:- (1) An application by

curing establishment for a licence under Section 28 shall be
accompanied by a free of rupees five.
Provided that the Board may exempt from payment of licence
fee any estate which hulls its own coffee on the estate.
(2) (i) A licence to operate as curing establishment shall be in Form

E and subject to such conditions as may be specified therein.
(ii) The Board may, at any time, after giving a reasonable

opportunity to the curing establishment to be heard , cancel a
licence, if it is satisfied that the curing establishment has committed
a breach of the provisions of the Act or of these rules or of the
conditions of licence issued.
(3) Licence issued by the Board under Section 24 or Section 28

shall be in numbered forms of which counterfoil shall be maintained
by the Board. Such licence shall not be transferable.
(4) Every curing Establishment shall at such times or at such

intervals as may be required by the Board send by registered Post to
the Board statements showing the amount of cured coffee sold by its
on behalf of each estate with which it was dealing for the year as
defined in Clause (n) of Section 3 and such other particulars as may
be prescribed.
Chapter VIII
Miscellaneous
46. [Returns from registered estates:- Every estate owner,

subject to the provisions of sub-section (1) of section 14 shall, in
respect of each estate owned by him, send by hand delivery or by
registered post to the Board:-
(a) Before 31st December of each year, a return in Form B

describing therein the required information. If a [free] sale
quota is allotted for a Crop Season by the Board, the estate
shall state whether it desires to have a licence for the sale of
uncured coffee and if so the quantity for which such licence is
required,
(b) Only from such registered owners as are required to do so by

the Board before 31st July each year, a return in Form H,
(c) Before 31st July of each year return in Form I.]
47. Inspection of Records by Growers:- (1) a registered owner

shall be entitled on application to be Board at any time during
business hours to inspect entries in so far as they relate to the estate
of which he is the owner and in respect of which application is made
in all or any of the following books:
(a) Register of growers
(b) Register of estates
(c) Pool Fund account
(2) On payment on such copying charge (as is prescribed below),

any registered owner shall be entitled to obtain copies of any entries
which he is entitled to inspect under Sub-Rule (1) Such entries shall
be certified as correct by an official of the Board authorised in this
behalf.
[Rs.2 for each application for copies of records for the current
year and Rs.3 for each application for copies of the records of each
of the previous years]
[47-A. Inspection of Records by Dealers:- The Board may, on
receipt of such charges as it may fix also grant any dealer
participation, in export pool or local sales copies of account of
coffee secured by him in export, pool and local sales. Such entries
shall be certified as correct by an official of the Board authorised in
this behalf.]
48. Redelegation of Powers: The powers delegated to the

Chairman, any Committee or any of its officers may, with the
previous approval of the Board, be further delegated by the
Chairman or such Committee or officers to any other officers.
------
Form A
(See rule 43)
No……..
Licence for sale of uncured cofee under section 24

Name of the estate
Registration Number Registered Taluk District
(Survey number in respect
of unregistered estate)
Name of owner
Postal address
Estimated crop Quantity authorised to
of rhe season be sold under licence
Arabica:
1. Parchment
2. Cherry
3. Parchment estate pounded
4. Cherry estate pounded
Robusta:
1. Parchment
2. Cherry
3. Parchment estate pounded
4. Cherry estate pounded
Other varieties:
Total
Note:- This licence is not transferable.
Seal :
Place: Signature.
FORM B
(See rule 46)
RETURN TO BE SUBMITTED BY ALL ESTATES
1. Name of the estate ___________________________________________________

(in block letters)
2. Registration Number ___________________________________________________
3. Full Postal Address ___________________________________________________
___________________________________________________
4. Name of the authorised
representative, if any ___________________________________________________
5. AREA UNDER COFFEE: In Hectares

__________________________________________
Arabica Robusta Other Total
Varieties
__________________________________________
(1) Planted area __________________________________________
(2) Bearing area __________________________________________
(3) Estimated production during

the year In kilogramme
________________________________________________
Plantation Arabica Robusta Robusta Rest Total
Cherry Parchment Cherry
________________________________________________
(4) Production during

previous two years 1.______________________________________________
2.______________________________________________
6.
(1) Free sale quota.
Desired quantity
Allotted percentage
or lesser quantity
(specify quantity) ________________________________________________
Contd..
..contd..
(2) Number of licences

Required under each
Category for sale of
Uncured Coffee ________________________________________________
(3) Quantity under each

Licence ________________________________________________
(4) Name of the Curing

Establishment/Collecting
Depot/Board’s collecting
Depots, where the surplus
Pool coffee will be
delivered in each of the
delivery points
i) Name ________________________________________________
Quantity ________________________________________________
ii) Name ________________________________________________
Quantity ________________________________________________
iii) Name ________________________________________________
Quantity ________________________________________________
Note: In case, the production estimated is more or less than the estimated
furnished above, then a revised estimate should be given as soon as the
harvest is completed but not later than 31st May.
DECLARATION
I/We undertake to deliver surplus pool coffee with the Pool Agent
indicated above.
I/We agree that free sale quota availed shall not exceed the quantity
allotted to the estate and in case production is less than the estimate given above then
free sale quota quantity should be restricted to the production allotted as free sale
quota during the year.
FROM C
See Rule 44(2)
COFFEE BOARD
Order for the export of Coffee from India
No. …….
Authority is hereby accorded to Mr./Mrs. …………………………………………

for the export of Tonnes/Kilogram/Grams of Coffee from the Port of ……………………
to …………………particulars of this coffee being as under.
1. Coffee sold as per contract No………………………………………………….
2. Type and grade of coffee……………………………………………………….
3. This permit shall be valid upto…………………………………………………
Seal
Chief coffee Marketing Officer

Coffee Board
Place……….
Date………..
(To be sent to the Customs officer by exporters : Customs duty to be paid at

Customs Frontier. After shipment original to be returned to the exporter with shipment
endorsement by Customs officer as indicated below:
To be entered by the Customs officer of the port of shipment

1. Quantity of Coffe shipped………………………………………………
2. Date of shipment………………………………………………………..
3. Name of the vessel……………………………………………………...
4. Port of destination………………………………………………………
Signature and Designation of Customs Officer).

FORM D
See Rule 44 (2)
Permit for the re-importation of Indian coffee exported
Under Section 21 of the Coffee Act
Mr……………………………………of (Address) ………………………………………

Is authorised to re-import into India ……………….Tonnes/Kilogram/Grams or Indian
coffee which was exported on………………..(under * the authority of the Coffee Board
conveyed in their Order No……………………….).
Dated………..
Seal
Chief Coffee Marketing Officer

Coffee Board
Place…………
Date …………
*
To be completed if the quantity was exported in terms of Coffee Act, 1942.
FORM E
See Rule 45 (2)(1)
COFFEE BOARD
Licence for curing establishment under section 28 of the Coffee Act
Name of Curer Address of Curer Conditions attatching

to licence ( if any )
Seal
Chief Coffee Marketing Officer

Coffee Board
Place ……….
Date ………..
Note: This licence is not transferable
[Form F, Form I, Form F.G]

FORM H
[See Rule (46)]
Cost of production of coffee for the Financial year
1. Name of estate …………………………………………………………………………

2. Coffee registration certificate No.(CRC No)…………………………………………..
3. Address of the Estate…………………………………………………………………..
4. Range/Division…………………………………………………………………………
5. Head Office address……………………………………………………………………
6. Name and Address of the owner……………………………………………………….
7. Name of the Auditor (if any) ………………………………………………………….
8. Accounting year (1) April/March or
Followed (Tick (2) July/June or
Appropriate box) (3) January/December or
(4) Other ……………
(specify)
9. (i) Total area of the estate at the close of the last three seasons(figure in hectares)
Particulars I year II year III year
Arabica Robusta Total Arabica Robusta Total Arabica Robusta Total
(i) Mature bearing
area
(ii)Immature bearing*
area
(iii)Non-bearing area
(Young plants)
Total planted area
(i) Planted area of other
Coffee varieties, if any,
(ii) Planted area of crops
(pure block)
(iii) Jungle or Reserve land
For other purposes
________________________________________________________________________
Grand total
*(Consisting of 4 years or 5 years old plants in case of Arabica and 7 or 8 years
old plants in case of Robusta).
(iii) Approximate area of interplanted crops mixed with coffee;

(iv) Percentage of interplanted crop’s mixed with coffee.
10. Total planted area, Bearing area and production expressed in terms of cleaned/cured
coffee, (for the last six years)
Sl..No Particulars I II III IV V VI
Year Year Year Year Year Year
1 2 3 4 5 6 7 8
A. PLANTATION
(i) Mature Bearing Area

(a) Arabica(Hectares)
(b) Robusta(Hectares)
(ii) Immatured Bearing Area

(iii) Non-Bearing Area

(iv) Total Planted Area

B. PRODUCTION
(i) From mature bearing area

(a) Arabica(kgs)
(b) Robusta(kgs)
(ii) From immature bearing area

(a) Arabica(kgs)
(b) Robusta(kgs)
(iii) Total Production

Total of B(i+ii)
(a) Arabica(in kgs)
(b) Robusta(in kgs)
C. PRODUCTION
(i) Cherry
(a) Arabica(kgs)
(b) Robusta(kgs)
(ii) Parchment
(a) Arabica(kgs)
(b) Robusta(kgs)
D. YIELD PER HECTARE

(in kgs)
(a) Arabica
(b) Robusta
11. EMPLOYMENT DETAILS;

(Please see Note 2 in page 10.)
Average number Salary per Other allowance No.1 per of Cost
Particulars of persons month wages per month 1 per months or (2x5)
Employed per day day excluding average No. (3+4)
Provident fund days
and Bonus
1 2 3 4 5 6
(a) Salaries for
Administrative
Staff
Self Employed:
Manager
Supervisory
Clerical
______
Total
______
(b) Wages for field
Labourers:
Self Employed
Men
Women
Adolescents
______
Total
______
(c) Contract Labour Charges

______
Total
______
12. Allocation of salaries and Wages (The total cost as per Column 6 may be allocated
between Column No.8 to 11 suitably and the basis may be indicated).
Particlurs Cultivation Cultivation Crop For other Total

cost: mature cost: Charges or crops
area immature harvesting including
area charges inter-
planted
7 8 9 10 11 12
(a) Salaries
(b) Wages
(c) Contract Labour
Charges
________________________________________________________________________
Estate Expenditure Statement
Amount
Sl. Name of the Item of Expenditure Remarks
No. ( in Rs.)
1 2 3 4
CULTIVATION COST
Material Cost
13. Cost of Manures

14. Cost of Chemicals
15. Cost of Tools
16. Cost of Lime
17. Cost of Supplies
18. Cost of Gunnies, Mats

Cultivation Cost
Cost of Labour (Including DA)
19. Jungle Cleaning
20. Preparing stocks
21. Line Marking
22. Opening and Closing pits
23. Shade Planting
24. Coffee Planting
25. Weeding
26. Manuring
27. Hutting
28. Scuffling
29. Pruning
30. Shade regulation
31. Plant Protection
32. Mulching
33. Spraying
34. Miscellaneous Cultural Operation
---------------------
Sub-Total(19-34)
--------------------
Crop Harvesting Cost
35. Picking (Harvesting)

36. Pulping
37. Drying
38. Transporting
------------------
Sub-Total(35-38)
------------------
Overhead Charges
39. Labour Welfare and Medical Aid

40. Salaries (including DA and other Allowances)
41. Provident Fund (Employees Contribution only)
42. Visiting Agency Fees
43. Other Allowances
44. Bonus
45. Gratuity
46. Watch and Ward/Security
47. Insurance
48. Printing & Stationery
49. Postage and Telegrams
50. -Telephone Charges
51. Electricity Charges
52. Water Charges
53. Subscriptions
54. Land Tax and Others
55. Agricultural Income Tax
56. Audit Fees
57. Other Estate Office expenses
58. Head Office expenses allocated to the estate
59. Cost of Stores and Spares
60. Maintenance of Labour lines
61. Maintenance of Building
62. Maintenance of Machinery
63. Maintenance of Vehicles
64. Depreciation (Building)
65. Depreciation (Machinery)
66. Depreciation (Vehicles)
67. Depreciation (Others)
68. Transportation charges (to Curing Works/
Collecting Depot)
69. Interest Charges
70. Donation
71. Bad Debts
72. Curing Charges
73. Cost of Cultivation
Total Cost allocated between
ARABICA ROBUSTA
Mature Immature area Mature
Immature area
Particulars Total New Replan- New Replan- Other Crops including

Plant- tation Planta- tation inter-Planted
ation area area tion area area
---------------------------------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9
--------------------------------------------------------------------------------------------------------
Material Cost
(Total of item
Nos.13 to 17 of
Estate Expenditure
Statement)
Labour Charges
(Total of item
Nos. 19 to 34)
Overheads
(Total of item
Nos. 39 to 43)
Plus 46 to 54
Plus 56 to 67
------------------------------------------------------------------------------------------------------
74. Crop Charges/Harvesting Charges
------------------------------------------------------------------------------------------------------
Total Cost allocated between

--------------------------------------------------------
Particulars Total Arabica Robusta Other Crops
----------------------------------------------------------------------------------------------------
Material Costs
(Item No.18)
Labour Charges
(Total of item No.35 to 38)
Overheads
(Total of item 68)
----------------------
75. Other income earned
--------------------------------------------------------------------------------------------------
Particulars Total Arabica Robusta Other Crops
----------------------------------------------------------------------------------------------------
Miscellaneous credits of income
Income from other Crops
---------------------------------------------------------------------------------------------------
76. Details of Materials:
1. CALTIVATION MATERIAL COST
Unit Quantity Rate Value Purchase

Sl. Particulars reference
No. Name Code*
-----------------------------------------------------------------------------------------------------------
2 3 4 5 6 7 8
1 (a)Cost of Manure
(i) Farmyard manure
(ii) Chemical fertilisers
(iii) Rest --------------------------------------------
Total
--------------------------------------------
(b) Cost of Chemicals
(i)
(ii)
(iii)
-------------------------------------------
Total
-------------------------------------------
(c)Cost of Tools and Machinery

(i)
(ii)
(iii) -------------------------------------------
Total
-------------------------------------------
(d) Cost of lime
(e) Cost of other supplies
(i)
(ii)
(iii)
----------------------------------------------
Total ---------------------------------------------
Grand Total ---------------------------------------------
HARVESTING MATERIALS COST
(a) Cost of Gunnies

(i)
(ii)
(iii)
------------------------------------------
Total
-----------------------------------------
(b) COST OF MATS
(i)
(ii)
(iii)
-----------------------------------------------
Total
-----------------------------------------------
Grand Total
----------------------------------------------
For Office use only
NOTES:
(See Page 3)
1. Production figures (including Estate Pounded Coffee pooled may be furnished as

per the Coffee Valuation Reports (CVR’s) received from the Curing Works/Collecting
Depots. However in case it is not possible to furnish the data as sper CVR’s for any
reasons, the production figures as depicted in the Excise Records (EB2) may be suitably
converted to arrive at the quantities of cured coffee produced by usisdng Board’s
conversion formula.
(See Page 4)
2. The total as per Column 6 and Column 12 should be same.
(See Page 6 & 7)

3. (i) In case of big estates and other estates where the records are maintained,
the total of the expenditure statement may be reconciled with the Profit and Loss account.
(ii) Total cost of labour and salaries may be reconciled with the item
Sl.No.12(a), (b) and (c).
(iii) In support of cost of materials, details may be furnished separately, as per

item No.76.
(See page 7, 8 and 9).
4. Value in Column 6 should tally with the details furnished in item Nos. 13 to 18.
FORM I
See Rule 46(I) (V)
Cost of production of coffee ………………..season
1. Whether the estate is company owned or privately?
2. Name of the Managing Agent or Managing Director of the Proprietor.
3. Period covered by the financial year as adopted by the estate.
4. Particulars of (area) broken down under the following heads:-
Arabica
Robusta
Paddy
(others crops to be detailed)

The above information in respect of coffee is to be given under the following heads:-
Total planted area; and

Total bearing area
5. Details of new clearings and replanting within the last six years………………
6. Number of labourers actually emplofyed Sl.No.37 in the last two years……….
………………………………..(separately for men women and children)
This information shall be given under the following heads:
a) Daily average nudmber of workers actually working in the

estate.
b) Total number of workers borne on the rolls.
c) Average number of dependents
7. Labour quarters and other buildings existing on the estate.
a) LABOUR QUARTERS:
(i) Number of lines and units conforming to specification under the Plantation
Labour Act 1951.
(ii) Number of lines and units which could be made to conform to the
specifications under the plantation Labour Act, with a few alterations or modifications.
(iii) Number of lines and units which do not come under either (I) or (ii) above.
b) OTHER BUILDINGS: Such as staff quarters, bungalows, canteens, hospitals

pulp houses, granaries, etc.,
Type of buildings/constructions Number Signature

1 2 3
Note : Amendments are shown in square brackets preceded by a figure and a letter
which are abbreviations used to donate the following:
I - Inserted by
A – Added by
O – Omitted by
S – Substituted by
1 - The Coffee Market Expansion (Amendment) Act, 1943

3 - The Coffee Market Expansion (Second Amendment) Act, 1944
4 - The Coffee Market Expansion (Amendment ) Act, 1947
6 - Adaptation of Laws Order, 1950
7 - Part B states (Laws) Act, 1951
8 - Repealing and amending Act, XL VIII of 1952
10- Adaptation of Laws Order, 1956
11- The Customs Duties and Cesses (Conversion to Metric Units) Act, 1960
12- The Coffee (Amendment) Act 1961
13- The Coffee (Amendment) Act 1985, No.48185
14- The Coffee (Amendment Act 1994)

Coffee Act PDF

Uploaded by

Document Informationclick to expand document information

Document Informationclick to expand document information

Copyright:

Available Formats

Coffee Act PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Coffee Act PDF

Uploaded by

Copyright:

Available Formats

THE COFFEE ACT

1. Short Title, extent and duration

Chapter II – Board and its Constitution

3. Constitution of the Board and the manner of filling vacancies

Chapter III – Procedure – Board and Committees

11. Minimum number of meetings of the Board

30 Salaries and allowances

Chapter V – Finance and Accounts of the Board

32 Power to incur expenditure

Chapter VI – Powers of the Board and its Chairman

37 Registration on delegation of powers

Chapter VII – Marketing and Licensing

40 Purchasing and selling coffee by the Board in the internal market

Chapter VIII – Miscellaneous

46. Returns from Registered Estates

The First Schedule From A to I

An Act. (to provide for the development under the

WHEREAS it is expedient (to provide for the

It is hereby enacted as follows:-

1. (1) This Act may be called the Short title

Note:- Item 1 (2) of the Coffee (Amendment) Act, 1961

Accordingly the following notification, was published in the

G.S.R. - In exercise of the powers conferred by Sub-Section

(a) “the Board” means the [ ] Coffee Board

[(aa) “Chairman” means the Chairman of the Board;]

(b) “Coffee” means the commodity derived from the

(c) “Collector” means a [Collector of Customs as VII of 1942

(d) “Curing means the application to raw coffee of

(e) “Curing establishment” means any place to

[(ee) “dealer” means a person carrying on the business

(f) “estate” means an area administered as one unit

[ (ff) “India” means territory of India excluding the State

(g) “Indian Coffee Cess Committee,” means the Indian

(i) “Owner” in relation to any land planted with coffee

(1) any agent of the owner, and

(2) a mortgagee, lessee or other person in

(j) “Prescribed” means prescribed by rules made under

(k) “registered estate” means an estate in respect of

(l) “registered owner” means an owner of a

(m) “Surplus pool” means the stock of coffee accumulated

[(n) “Year” means the period of twelve months beginning

(a) a Chairman to be appointed by the Central Government

(b) three members of Parliament of whom two shall be elected

(c) such number of other members not exceeding twenty nine

(i) Governments of the Principal Coffee growing states;

(2A) The number of persons to be appointed as members

(2B) Any officer of the Central Government when

[(4) No act done by the Board shall be questioned

[(5) It is hereby declared that the office of member of

Vesting of 6. So long as this Act remains in force all property, movable

Provided that no action taken by the Central Government

(3) The Board may authorise agents to discharge on its behalf,

(2) The Officers appointed under this Section shall be entitled

Duties and Customs and of Excise

11. A Duty of Customs shall be levied on the coffee produced

*The following notifications 1 and 2 were issued by the

1. S.O. In exercise of powers conferred by Section II of the Coffee Act