Small Industries Development Bank of India Act, 1989
No: 39 Dated: Oct, 25 1989
The Small Industries Development Bank of India Act, 1989
(Act No. 39 of 1989)
An Act to establish the Small Industries Development Bank of India as the principal financial institution for the promotion, financing and development of industry in the small-scale sector and to co-ordinate the functions of the institutions engaged in the promotion, financing or developing industry in the small-scale sector and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Fortieth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called the Small Industries Development Bank of India Act, 1989.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “Board” means the Board of directors of the Small Industries Development Bank of India referred to in section 5;
[(b) “chairman and managing director” means the chairman and managing director referred to in clause (a) of sub-section (1) of section 6;]
(c) “Court” means the High Court within the local limits of whose jurisdiction,—
(i) the defendant or respondent or, where there is more than one defendant or respondent, any one of them—
(1) has his registered office, or
(2) carries on the whole or part of his business, at the time of commencement of any legal proceedings against him under this Act, or
(ii) the cause of action for such legal proceedings, wholly or in part, arises;
(d) “Development Bank” means the Industrial Development Bank of India established under section 3 of the Industrial Development Bank of India Act,1964 (18 of 1964);
(e) “Director” means a Director nominated under sub-section (1) of section 6 and includes the 3 [chairman and managing director and whole-time director];
(f) “export” means export from India of products or services of any industrial concern in small-scale sector;
[(fa) “General Insurance Corporation” means the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);]
(g) “import” means import into India of services or goods including all materials, commodities and articles in a solid, liquid or gaseous state and all forms of energy for the use of any industrial concern in the small-scale sector;
[(h) “industrial concern in the small scale sector” means any concern engaged or to be engaged in,—
(i) the manufacture, preservation or processing of goods;
(ii) shipping;
(iii) mining including development of mines;
(iv) the hotel industry;
(v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
(vi) the generation, storage or distribution of electricity or any other form of energy;
(vii) the maintenance, repair, testing or servicing of machinery or equipment of any description or vehicles or vessels or motor boats or trailers or tractors;
(viii) assembling, repairing or packing any article with the aid of machinery or power;
(ix) the setting up of, or development of, an industrial area or an industrial estate;
(x) fishing or providing shore facilities for fishing or maintenance thereof;
(xi) providing special or technical knowledge or other services for the promotion of industrial growth;
(xii) providing engineering, technical, financial, management, marketing or other services or facilities for industry;
(xiii) service industry such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;
(xiv) providing medical, health or other allied services;
(xv) providing services relating to information technology, telecommunication or electronics;
(xvi) leasing, sub-leasing or giving on hire-purchase of industrial plants, equipments, machinery or other assets including vehicles, ships and aircraft;
(xvii) such other activity as the Central Government may, having regard to the objects of this Act, by notification, specify in this behalf; or
(xviii) the research and development of any concept, technology, design, process or product whether in relation to any of the matters aforesaid, including any activities specified under sub-clause (xvii), or any other matter and which is regarded as a small-scale undertaking under section 11B of the Industries (Development and Regulation) Act, 1951(65 of 1951);
Explanation.—The expression “processing of goods” includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation