Chandigarh · 1976 · Act 18
The Haryana Relief of Agricultural Indebtedness Act, 1976 (as extended to U.T., Chandigarh)
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REGISTERED No. D-(D)-72
Gazette of fractia
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PART II—Section 3—Sub-section
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MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 28th May 1976
G.S.R. 385 (E).-4n exercise of the powers conferred by section 87 of the Punjab Re-
organisation Act, 1966 (31 of 1966), the Central Government hereby extends to the Union
territory of Chandigarh, the Haryana Relief of Agricultural Indebtedness Act, 1976
(Haryana Act 18 of 1976), as in force in the State of Haryana at the date of this noti-
fication, subject to the following modifications, namely:—
Modifications
I. Throughout the Act,—
(a) for the figures, abbreviation and words "22nd day of August, 1975', wherever
they occur, the figures, abbreviation and words "1st day of October, 1975"
shall be substituted;
(b) except in sub-clause (i) of clause (f) of section 2, for the words "State Govern-
ment", wherever they occur, the word "Administrator" shall be substituted:
(c) for the words, figures and brackets "Haryana Relief of Agricultural Indebted-
ness Act, 1975 (Haryana Act 22 of 1975)". wherever they occur, tho words,
figures and brackets "Haryana Relief of Agricultural Indebtedness Act, 1975
(Haryana Act 22 of 1975), as extended to the Union territory of Chandi-
garh" shall be substituted.
( 1317 )
1318
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II-
2. In section 1, in sub-section (2), for the words "by notification", the words "by noti-
fication in the Chandigarh Gazette" shall be substituted.
3. In section 2,—
(a) clause (a) shall be relettered as clause (aa) and, before the clause as so re-
lettered, the following clause shall be inserted, namely:—
`(a) "Administrator" means the Administrator of the Union territory of Chandi-
garh appointed by the President under article 239 of the Constitution;';
(b) in clause (b), in sub-clause (vii), for the words "Central Government in the
Gazette", the words "Administrator in the Chandigarh Gazette" shall be
substituted.
4. In section 250-
(a) in sub-section (1), for the words "Official Gazette", the words "Chandigarh
Gazette" shall be substituted;
(b) in sub-section (2), for the words "previous publication", the words "previous
publication in the Chandigarh Gazette" shall be substituted,
(c) sub-section (3) shall be omitted.
ANNEX URE
THE HARYANA RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
(HARYANA ACT 18 OF 1976) AS EXTENDED ro THE UNION TERRITORY OF
CHANDIGARH
An Act to provide relief from indebtedness to agricultural labourers, rural artisans,
marginal farmers and small farmers.
Be it enacted by the I egislature of the State of Haryana in the Twenty-seventh Year
of the Republic of India as follows:-
1. Short tulle and commencement.—(1) This Act may be called the Haryana Relief
of Agricultural Indebtedness Act, 1976.
(2) The provisions of section 3 and 4 shall be deemed to have come into force on the
1st day of October, 1975 and the remaining provisions shall come into force on such date
RS the Administrator may, by notification in the Chandigarh Gazette, appoint.
2. DefInItIons.—Tn this Act, unless the context othetw;se requires,—
(a) "Administrator" means the Administrator of the Union territory of Chandigarh
appointed by the President under article 239 of the Constitution;
(aa) "agriculttu al labourer" means a person who follows any one or more of the
following agricultural occupations in the capacity of a labourer OR hire or
exchange, whether paid in cash or in kind or partly in cash and partly in
kind:—
(i) farming including cultivation and tillage of soil, etc.;
(ii) dairy farming;
(iii) production, cultivation, growing and harvesting of any horticultural commodity;
(iv) raising of livestock, bees or poultry; and
(v) any ptaetice performed on a farm as incidental to or in conjunction with
farm operations (including any forestry or timbering operations) and pre-
paration for market and delivery to storage or to market or to carriage
for transportation of farm products;
(b) "bank" means—
(i) banking company as defined in the Banking Regulation Act, 1949 (Central
Act 10 of 1949);
(II) the State Bank of India constituted under the State Bank of India Act, 1955
(Parliament Act 23 of 195,5);
(iii) a subsidiary bank. as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (Parliament Act 38 of 1959);
3(1)] THE GAZETTE OF INDIA EXTRAORDINARY 1319
(iv) a corresponding new Bank constituted under the Banking Companies (Acquisi-
tion and Transfer of Undertakings) Act, 1970 (Parliament Act 5 of 1970);
(v) any banking institution notified by the (C
entra
lrmen under section 51
of the Banking Regulation Act, 1949 Act 10 of 1949);
(vi) the Agricultural Refinance and Development Corporation constituted under
the Agricultural Refinance and Development Corporation Act, 1963 (Par-
liament Act 10 of 1963);
(vii) any other financial institution notified by the Administrator in the Chandigarh
Gazette as a bank for the purpose of this Act;
(c) "civil court" includes—
(i) a court exercising jurisdiction under the Provincial Insolvency Act, 1920
(Central Act 5 of 1920);
(ii) a Panchayat established under the Punjab Grain Panchayat Act, 1952 (Punjab
Act 4 of 1953), while exercising f auctions of a civil court;
(iii) a court exercising powers under the Provincial Small Cause Courts Act, 1887
(Central Act 9 of 1887);
(d) "Collector" means the Head Revenue Officer of a District, and includes any
other officer appointed under this Act by the Administrator, by notification
to exercise the powers of a Collector;
(e) "co-operative society" means a society registered or deemed to be registered
under the Punjab Co-operative Societies Act, 1961 (Punjab Act 25 of 1961);
(f5 "debt" includes all liabilities owing to a creditor in cash or kind, secured or
unsecured, payable under a decree or order of a civil court or otherwise-
and subsisting on the date of commencement of this Act whether due or
not due but it does not include—
(i) a debt due to the Central Government, any State Government, a local autho-
rity, a co-operative society or a bank;
(ii) a debt due to any Government company within the meaning of the Com.
patties Act, 1956 (Parliament Act 1 of 1956):
(iii) a debt due to the Life Insurance Corporation of India established under the
Life Insurance Corporation Act, 1956 (Parliament Act 3 of 1956), or
other corporations established under any law for the time being in force;
(iv) any rent due in respect of any property let out to a debtor;
(v) any liability arising out of breach of trust or any tortious liability;
(vi) any liability in respect of wages or remuneration due as salary or otherwise
for services rendered;
(vii) any liability in respect of maintenance whether under a decree of civil court
or otherwise;
(viii) any debt which represents the price of any goods or property purchased by
a debtor;
(ix) any advance of money given to the debtor by a person as the price of goods
or property to be sold later on;
(x) any advance of wages whether in cash or in kind, or partly in cash or partyly
in kind, made to a debtor at his instance by a person in pursuance of a
contract of service for a specified period:
Provided that the rate of wages settled is not less than the minimum rate of
wages fixed by law:
(xi) any sum recoverable as arrears of land revenue;
(8) "debtor" means an agricultural labourer, a marginal farmer, a small farmer
or a rural artisan, who owes a debt;
h ) "marginal farmer" means a person who owns land not exceeding one hectare
of unirrigated agricultural land and whose principal means of livelihood is
income from such land or by manual labour on land not exceeding one
hectare of unirrigated agricultural land or from production or repair of
traditional tools, implements and other articles or things used for agricul-
ture or purposes ancillary thereto or by practisina craft by his own labour
or by the labour of the members of his family in a rural area:
1324
•
II— THE GAZETTE OF INDIA EXTRAORDINARY LPART
(i,) "rural artisan" means a person who does not own any agricultural land and
whose principal means of livelihood is production or repair of traditional
tools, implements and other articles or things used for agriculture or purposes
ancillary thereto and also a person who normally earns his livelihood by
practising a craft either by his own labour or by the labour of the members-
of his family in a rural area;
(j) "small farmer" means a person who owns land exceeding one hectare but not
exceeding two hectares of unirrigated agricultural land and whose prin-
cipal means of livelihood is income from such land or by manual labour
on land exceeding one hectare but not exceeding two hectares of unirrigated
agricultural land or from production or repair of traditional tools, imple-
ments and other articles or things used for agriculture or purposes ancillary
thereto or by practising craft by his own labour or by the labour of the
members of his family in a rural area.
Eap1anation.—For the purposes of clauses (h) and (j), one hectare of perennially
Irrigated land shall be equated with two hectares of non-perennial irrigated land and three
hectares of un-irrigated land.
3. Exclusion of time for linaltation.—In computing the period of limitation for a suit
for the recovery of a debt or an application for the execetion of a decree passed in such
skit, the time during which the institution of the suit or the making of the application
was barred by section 3 of the Haryana Relief of Agricultural Indebtedness Art, 1975
(Haryana Act 22. of 1975), as extended to the Union territory of Chandigarh, shall be
excluded.
4. Interest not to accrue in respect of debt—No interest shalt acetate in respect of
debt on or after the 1st day of October, 1975.
5. Discharge of debt—Notwithstanding anything contained in any enactment for the
time. being in force or in any contract or other instrument having the force of law,—
(a) every debt, together with any interest payable thereon, owed on the com-
mencement of this Ace by an agricultural labourer, a rural artisan, or a
marginal farmer, whose annual household income does not exceed two
thousand and four hundred rupees, shall be deemed to be wholly discharged;
(b) every debt owed to any person by an agricultural labourer, a rural artisan or
a marginal farmer, whose annual household Income exceeds two thousand and
fou hundred rupees and a small farmer shall be deemed to be wholly dis—
charged if--
(1) he, had in the discharge of his debt, paid a sum exceeding or equivalent to
double the amount of the debt at any time before the commencement of this Act;
(ii) he, in the discharge of his debt, pays, after the commencement of this Act,
a sum which, together with any sum already paid in the discharge of
such debt, is eqluivalent to double the amount of the debt;
(c) every property pledged or mortgaged by a debtor whose debt is deemed to be
discharged under clause (a) or clause (b), shall stand released in his favour
when such debt is deemed to be discharged and the creditor shall, if he is in possession thereof, return the same to the debtor forthwith;
(d) subject to the provisions of clauses (a) and (b), the liability of a debtor to
repay the debt, together with any interest payable thereon, shall not exceed
twenty per cent of the gross value of his annuli household income multi-
plied by seven and such liability shall be spread for repayment over a
period up to seven years to be reckoned from the date of order of adjudi.
cation. No recovery of amount in excess of the debt liability scaled down
shall be made and the portion of the debt in excess thereof shall he extin-guished.
6. Interest.—The interest payable on the debt shall ne calculated at the rate appli-
cable to debt under the law, custom or contract oe at a rate of six per cent per annum
whichever is lees and credit shall be given for all Rums paid or credited first
towards out-etaraling interest and the balance, if any, shall be credited towards repayment of the
principal. The amount of principal and the interest outstanding will be considered as the net outstanding debt on the 1st day of October, 1975, for the purpose of scaling down.
Sze. 3(1)] THE GAZETTE OF INDIA EXTRAORDINARY 1321
7. Appointment of debt settlement ofiker.—The Administrator may, for the purposes
of settlement between the debtors and their creditors, appoint debt settlement officers and
define the local areas in which they shall exercise jurisdiction.
8. Application for settlement.--A debtor or any of his creditors may apply within it
period of six months from the data of notification under sub-section (2) of seetioa;1;- to
the debt settlement officer appointed for the area in which -a resides cif holds any
land to effect a settlement between the debtor and his creditors.
9. Verification of application.—Every application to a debt settlement officer shall be
in writing and be signed by the applicant and verified in such manner as may be prescribed.
10. Particulars to be stated in application.--(1) Every application presented by a debtor
/to the debt settlement officer shall contain the following particulars, namely:—
(a) the place where he resides ow holds land;
(b) the particulars of all claims against him together with names and residences of
his creditors;
(c) the particulars of all his property, together with a specification Of the value
of such property and the place or places at which any such property is to
be found;
(d) the particulars of his household income;
(e) a statement containing full particulars showing that he is a debtor;
(f) a statement whether he has previously filed an application in respect of the
same debt before the debt settlement officer, and if so, with what result.
(2) Every applioation presented by a creditor shall contain the following particulars,
mutely:—
(a) the place where the debtor resides or holds land;
(b) the amount and particulars of his claim against such debtor;
(c) a statement containing full particulars of the debtor.
11. Procedure on receipt of application.—(1) On receipt of an application under
section 8, the debt settlement officer shall pass an order fixing a date and place for
'hearing the application.
(2) Notice of the order under sub-section (1) shall be sent to creditors by registered
post, acknowledgment due, at the cost of the applicant and where the debtor is not the
applicant, notice of the order under sub-section (1) shall be sent to him in a similar
imanner.
12. Notice calling creditors to submit statements of debts.--(1) On the date fixed, the
debt settlement officer shall publish, in such manner as may be prescribed, a notice, calling
upon every creditor of the debtor to submit a statement of debts owed to such creditor
by the debtor. Such statement wherein the creditor shall show whether he is registered
-under the Punjab Registration of Money Lenders Act, 1938 (Punjab Act 3 of 1938), and
had complied with the provisions thereof, shall be submitted to the debt settlement officer
in writing within a period of two months from the date of publication of the notice;
Provided that, if the debt settlement officer is satisfied that any creditor was, for good
and sufficient cause, unable to comply with such direction or to produce the documents
required under sub-section (1) of section 13 within the period fixed, it may extend the
period for the submission of his statement of the debts owed to him or for the pro-
duction of such documents.
(2) Every debt owed to a single creditor of which no such statement has been sub-
mitted to the debt settlement officer In compliance with the provisions of sub-section (1)
shall be deemed to be duly discharged for all purposes and all occasions against such
creditor; and every debt owed to two or more creditors jointly of which such a state-
ment or statements signed by all such creditors or their recognised agents has or have
not been so submitted, shall be deemed to be so discharged against such creditors as have
'failed to submit the said statement but only to the extent of their respective sharps in
the said debt.
*(3) If the creditor or any of the joint creditors fails without sufficient cause to be
present In person or by his recognised agent or, with the permission of the debt settle-
ment officer by legal practitioner at any of the hearings fixed by the debt settlement offi-
cer, or fails to produce full particulars and documents as required ander sub-section (1)
1322 THE GAZETTE or INDIA EXTRAORDINARY [PART
of 'section 13, the debt due to him or to the joint creditors, as the ease mayebe, shall be
deemed for all purposes and all occasions to have been fully discharged.
a
(4)' Jf any creditor proves to the satisfaction of the debt settlement officen that the
notice Was not served on him and that he had no knowledge of itsepublieation 'or that
was unavoidably absent at any of the hearings fixed by the debt settlement officer, the debt settlement officer may revive that debt.
13. Procedure on submission of statements of debts.—(1) Every creditor submitting in
compliance with a notice issued under sub-section (1) of section 12 a statement of the
debts owed to him shall furnish, along with such statement, full particulars of all such
debts, and shall at the same time produce all documents (including entries in books of
account) 00 which he relies to support his claims, together with a true copy of every such documents:
Provided that a decree or order of a civil court shall be conclusive evidence as to the
amount of the debt to which the decree relates, but the amount may be reduced if it
exceeds double the principal loan or has been made up by including simple interest at a
rate higher than six per cent per annum.
(2) The debt settlement officer shill after marking for the purpose of identification
every original document so produced and verifying the correctness of the copy, retain
the copy and return the original to the creditor.
14. Power of debt settlement officer to adjudicate.—(1) if a creditor or a debtor, bs
the case may be, challenges the genuineness or enforceability of any debt included in an
application, the debt settlement officer shall adjudicate upon the issue.
(2) Any person aggrieved by a decision of the debt settlement officer under sub-section
(1) may appeal therefrom to the Collector:
Provided that an appeal shall not lie from an order refusing to review or confirming
on review a previous order.
(3) The period of limitation for an appeal under this section shall run from the date
of the order appealed against and shall be thirty days.
(4) The debt settlement officer shall determine in the case of each debt shown in the
application made by the debtor or his creditor under section 8, or in the statement fur-
nished by the creditor under section 13, other than a debt declared non-genuine or un-
enforceable. the principal amount originally advanced, the amount paid by the debtor
towards the principal or interest or both and the interest at the rate of six per cent per
annum from the date the principal amount was advanced to the 1st day of October, 1975,
however, that in calculating the interest, the payments made by the debtor from time
to time shall first be adjusted against the interest due on the date of payment and then
towards the principal and onwards interest shall be calculated on the principal amount
thus remaining outstanding.
(5) Where the debtor is found to have repaid to the creditor an amount equal to, or
exceeding, double the principal amount, or the debtor on being apprised of such findings pays an amount which makes the total repayment equal to double the amount of prin-
cipal, the debt settlement officer shall declare the debt as fully discharged and thereupon
the provisions of clause (c) of section 5 shall apply to the debt. Tn case the amount
repaid to the creditor is found to be in excess of double the principal, the debt settlement
officer shall order the refund of the same to the debtor by the creditor.
(61 The debt settlement officer shall estimate the annual household income of a debtor
and determine, for the purpose of section S., his liability and capacity to repay the debts
outstanding against him.
(7) In the cases not falling under sub-section (5), the debt settlement officer shalt, keeping in view the outstanding amount of principal and interest as determined under
Falb-section (4) and the paying capacity of the debtor determined under sub-section (6),
es the case may be, order the payment of the amount in yearly equal instalments not exceeding seven:
Provided that In no case the debtor shall be required to pay towards the principal and the interest any a notase 'hat exceeds double the principal:
Provided further that whew+ the amount of yearly instalment in respect of all the debts
exceeds the paying oapacity of the debtor, the debts shall be proportionately reduced so
Sic. 3(1)]
TI-IE GAZETTE OF INDIA EXTRAORDINARY 1323
as fto make the yearly instalment equal to the paying capacity and on payment of the
instalments so determined, the debt or debts shall stand fully discharged,
15. Consequences of non-registration under Punjab Act 3 of 1938,—In recording find-
ings under section 14, the debt settlement officer may, where a creditor is not registered
in accordance with the provisions of the Punjab Rgistration of Money Lenders Act, 1938
(Punjab Act 3 of 1938), disallowed the whole of his claim and declare the debt as fully
discharged and where the creditor is found to have failed to comply with the provisions
of the said Act with regard to maintenance and publication of accounts, disallow whole
of the interest on the principal amount.
16. Power of debt settlement officer to require attendance of persons and production of
documents and to receive evidence.—A debt settlement officer 'appointed under section 9
may exercise all such powers connected with the summoning and examining of parties
and witnesses and with the production of documents as are conferred on civil courts by
the Code of Civil Procedure, 1908 (Central Act 5 of 1908), and every proceeding before
the debt settlement officer shall be deemed to be a judicial proceeding.
17. Dismissal of application in default.--If in the opinion of the debt settlement officer
any applicant fails to conduct his application with due diligence, the debt settlement
officer may dismiss the application at any stage.
18. Decision of debt settlement officer to be final.---If any question arises in any pro-
ceedings under this Act whether a loan or liability is a debt or not, or whether a person
is a debtor or not, the decision of the debt settlement officer shall be final, and shall not
be called into question in any court.
19. Bar of civil suits.--No civil court shall entertain--
(a) any suit, appeal or application for revision.---
(1) to question the validity of any procedure or the legality of any order issued
under this Act; and
(ii) to recover any debt which has been deemed to have been duly discharged
under the provisions of this Act;
(b) any application to execute a decree passed by a civil court against a debtor;
(c) any suit for declaration or any suit or .application for injunction affecting any
proceedings under this Act before a debt settlement officer.
20. Review..---Any Person considering himself aggrieved by an order of the debt settle-
ment officer and who, from the discovery of any new and important matter or evidence
which, after the exercise of due diligence, was not within his knowledge or could not be
produced by him at the time when such order was made, or on account of some mistake
or error apparent on the face of the record, or for any other sufficient reason, desires to
obtain a review of the order made against him, may apply for a review of such order to
the debt settlement officer who may review the order and pass such order as he thinks fit:
Provided that he shall not under this section pass an order reversing or modifying any
order affecting any person interested without giving such person an opportunity of being
heard:
' Provided further that no application for review shall be entertained if presented more
than twelve months after the date of the order sought to be reviewed.
21. Bar of appeal or revision.--Save as otherwise expressly provided in this Act, no
appeal or revision shall lie against any order passed by a debt settlement officer.
22. Appearance of party before debt settlement officer by agent or by legal practi-
tioner.—In any proceedings under this Act, any party may be represented by an agent
authorised in writing or with the permission of the debt settlement officer by a legal
practitioner.
21 Application of provisions of Parliament Act 36 of 1963.—The provisions of the
Limitation Act, 1963 (Parliament Act 36 of 1963), shall apply to an application made by a
creditor under section 8 as if the application were a plaint in a suit for recovery of the
loan.
24. Recovery of sums doe.---The order of the Debt Settlement Officer passed under this
Act shall be executed by the civil court having jurisdiction in the area as if it were a
tiecree or order of that court.
1334 THE GAZETTE or INDIA EXTRAORDINARY [PanT IL-
25. Power to make rales.—(1) The Administrator may, by notification in the Chandi-
garh Gazette, make rules to provide for all matters for which provision is necessary or
expedient for the purpose of giving effect to the provisions of this Act.
(2) The rules made under sub-section (1) shall be subject to previous publication in the
Chandigarh Gazette.
(3) [Omitted.]
26. Amendment of section 4 of Punjab Act 3 of 1938.—Section 4 of the Punjab
Registration of money Lenders Act, 1938 (Punjab Act 3 of 1938), shall be re-numbered as
sub-section (1) of that section and after sub-section (1) as so re-numbered, the following
sub-section shall be inserted, namely,—
"(2) No money lender shall carry on the business of advancing loans unless he gots
_himself registered under sub-section (1).
(3) Any money lender who contravenes the Provisions of sub-section (2) shall be
liable, on conviction, to a fine not exceeding one thousand rupees for the Brat
offence and two thousand rupees for every subsequent offence.".
27. Repeal.--The Haryana Relief of Agricultural Indebtedness Act, 1975 (Haryana Act 22 of 1975), as extended to the Union territory of Chandigarh, is hereby repealed.
[No. U-11(11573/76-U11-(133)]
X C. PANDEYA, It. Secy.
Wwntrit
9 28 1976
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1,126 THE 'GAZETTE OF INDIA EXTRAORDINARY [PART
(ii)
(iii) 31IT9 PT T). affil Z4FTTZ9-, *Tiff W 7.".17, 31T1.9T d-41-3Fra .91-;
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PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA. PRESS, MINTO ROAD,
lt.TEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1976
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