The Punjab Debtor's Protection Act, 1936

1936. Pb. Act II] DEBTORS' PROTECTION THE PUNJAB DEBTORS PROTECTION ACT, 1936 TABLE OF CONTENTS, ’ ' PREAMBLE. ’ SECTIONS, CHAPTER I.—PRELIMINAR Y 1. Short title, extent and commencement, 2. Definitions. CHAPTER II.—EXBCUTION OF DECREES 3. Definitions. 4, [Omitted) 5. [Omitted) 6. [Omitted) e 6-A. [Omitted) 7. [Omitted) 8. Rules to be made after previous pubilication, 9. Exemption of ancestral property from liabililty. 10. Exemption of standing crops and trees from attachment or sale. 11. Execution barred in certain cases. 11-A. Execution barred in cases where land is exempt from attachment to sale. 11-B. Power ro direct payment of decretal amount by instalments. 1L.C. Prohibition of charge for expenses on loans. CHAPTER 11I—BURDEN Of PROOF 12. Burden. of proof of consideration- - 1936: Pb. Act II.] DEBTORS’ PROTECTION 3 'THE PUNJAB DEBTORS’ PROTECTION ACT, 1936 Punjab Act No. IT of 1936 [Received the assent of His Excellency the Governor on the 16th Apri’, 1936, and that of His Excellency the Viceroy and Governor-General on the 30th May, 1936, and was first published in the Punjab Gazette, Extra- ordinary, of the 6th June, 1936.] 1 2 3 4 e - T Wl;ther repealed or other- Year No. Short title wise affected by legislation 193¢ .. | 1II The Punjab Debtors’ | Amended in part, Government of Protection Act, | India (Adaptation of Indian Laws) 1936 Order, 1937 tAmended by Punjab Act IX of 1938 3Amended by Punjab Act X of 1939 Amended by Indian Independence (Adaptation of Bengal and Punjab Acts) Order of 1950 (G.G.O. 40) ¢Amended by East Punjab Act III of 1948 Amended by the Adaptation of Laws Order, 1959 . Amended by the Adaptation of Laws (Third Amendment) Order, 1951 "A;n%ndcd by Punjab Act No. 18 of 195 sExtended 10 the territories, which immedijately before the 1st November, 1956, were comprised in the state of Patiala and East Punjab States Unjon by Punjab Act No 44 of 1960 Amended by the Punjab Reorgani- sation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) order 1968. 'For Statement of Objects and Reasons, see Punmjab Gazette® 1935, Part I, bage 249, For Report of the Select Committee, see Punjab Gazette, 1935, Part V. pages 49-50, and for Proceedings in Council, see Punjab Legislative Council Debates, Volume XXVI, pages 988-989, Volume XXVII, pages 1137—1174, 1177, 1210,’ 12381247 ; Volume XXVIII, pages 903, 1003—1028. 5 For Statement of Objects and Reasons, see Pumjab Gazette (Extraordinary), l‘)9_{‘3-' page 42 ; and for Proceedings in Assembly, see Punjab Legislative Assembly $tes Volums 1V, pages 696—704 and Volume V, pages 41 and 54. 95 €o: Statemsat of Objects and Reasons, see Punjab_Gazette (Extrpordmary), » P32 143 5 and for Proceedings in Assembly, see Punjab Legislative Assem- bly D:bates, Volume X, pages 77—90. nar )F"" S:atenzat of Objects and Reasons, see East Punjab Gazete (Extraordi- A 1913, pags 155 ; and for Proceedings in Assembly, see East Punjab Legis- Hive Asscbly Debates, Volume I, pages 119—~120. ) tat:m:nt, o j H (Exica ordinasy), ]gssmg:l:;}zif and Reasons see Punjab Government Gazeite o, B t . . 1960, pl;;; §:9a.4:§?1em of objzcts and Reasons, see Punjab Gazetts (Extra ordinary), 4 DEBIORS' PROTECTION [1936: Pb. Act 1y, i more effective protection of debt, An Act to provide for the in [Punjab]. ors - ' he more effective as itis expedient for tb - Protec. Breaublce tion })\;‘%P{:}:;Etors to modify the existing 1aw on certain pojn and to amend the law with respect to persons carrying o business as money-lenders ; i i f the Gove AND WHEREAS the previous sanction o rnor. General under sub-section (3) of section 80-A' of the Government of India Act and the previous sanction of the Governor under section 80-C of the said Act have been op. tained. CHPATER I.—PRELIMIN! RY It is hereby enacted as follows .— Short title, exten 1. (I) This Act may be called the Punjab Debtors’ Tent o™ € P rotection. Act, 1936. (2) It extends to ?[Union Territory of Chandigarh). (3 It shall come into force at once. Definitions. . 2. In this Act, unless there is anything repugnant in the subject or context,— (I) “Bank” means a company carrying on the business of banking and registered under any of the enactments relating to companies for the time being in force in the United Kingdom, or In any of the Colonies or Dependencies thereof, or in 3[any Part A State or Part C State], or tncorporated by an Act of Parliament [of the United Kingdom], or by Royal Charter or Letters Patent or by any Act of @[Parlia- ment], _ Substitut « A . ird endment) e(c)lrdsg'f “f;fi"m East Punjab” by the Adaptation of Laws (Thir *Substituted for the dpis. . oo di- garh) (Adaptatj word “Punjab” by the Punjab Re-organisation (Chandt on of Laws on State and Concurrent Subjects) Order, 1968. “Substituty “Rpie . ’ ird Amendment|)'l %l,f,‘;:,“;ggvlfirds British India” by the Adaptation of Laws (Thi 41 nserted by the Adaptation of Laws (Third Amendment) Order, 195)- f ol *Substi . Ws (Tsh iluted for the words ¢ Central Legislature” by the AdaP‘a"f’;l ad been substiltilt cndment) Ord isIatUE i s cdmfon“h Order, 1951, The words ‘“‘Central LegislatUr gia (Adaptation of Indin : &%r;i)s (‘)I;_l:l«:lranlglfigislamm, by the Goverpment © 1936 : Pb. Act 11.] DEBTORS’ PROTECTION 5 (2) “Company”” means a company registered under any of the enactments relating to companies for the time being in force in the United King- dom or in any of the Colonies or Dependencies thereof, or in '[any Part A State or Part C State], or incorporated by an Act of Parliament 7[of the United Kingdom], or by Royal Charter or Letters Patent, and includes Life Assurance Companies to which the Indian Life Assurance y; ¢ 912 Companies Act, 1912, applies. (3) “Co-operative Society” means a society re- gistered under the provisions of Co-operative Societies Act, 1912. 11 of 1912 (4) “Court” includes a court acting in the exercise of insolvency jurisdiction. (5) “Interest” includes the return to be made, over and above what was actually lent, whether the same is charged or sought to be tecovered, specifically by way of interest, or otherwise. (6) “Loan” means an advance whether of money or in kind at interest and shall include any transaction which the court finds to be in sub- stance a loan, but it shall not include :— (?) a deposit of money or other property in a Post Office Savings Bank or any other bank, or in a company or with a co-operative society ; (ii) a loan to or by , or 2 deposit with any society or association registered under the Societies Registration Act, 1860, or under any other xx1 of 1860. enctment for the time being in force ; ——————————————— ——————————————— —— R R 1Substituted for the words “British India” by the Adaptation of Laws (Third Amendment) Order, 1951. Inserted by ibid. 6 DEBTORS’ PROTECTION [1936: Pb. Act 1. dvanced by the '[Central Governmeps (iii) grlo%!; aarYy local ‘body authorized by thf], 1[Central Government] ; i loan advanced by a bank, a CO-Operative (W) 2oc?ety or a company whose accounts are sub. ject to audit by a certificated auditor under VIL of 1913, the Indian Companies Act, 1913 ; (v) a loan advanced to a trader ; vi) an advance made on the basis of a negotaible ) instrument as defined in the Negotlal?le XXVI of 1881, Instruments Act, 1881, other than a promis- sory note ; (vii) a transaction which is, in substance, a mort- gage or a sale of immovable property. (7) “Money-lender” means a person who, in the regular course of business, advances a loan as defined in this Act and shall include the legal representatives and the successors-in-interest, whether by inheritance, assignment or other- wise, of the person who advanced the loan. (8) “Trader” means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and shall include— (?) a wholesale or g retail merchant, (#) a commission agent, (iii) a broker, @) a manufacturer, ) a contractor, i) a factory owner, but shall not i agricultura] p cultural prog C— —_— nclude a person who sells his own roduce or cattle, or buys agri uce or cattle for his own use. —_ 'Substituted for th “ . Chandigarh) (Adapta?i:;orgg LStflte Government” by the Punjab Re-organisatiou WS on State and Concurrent Subjects) Order, 1968 1936 : Pb. Act II. ] DEBTORS’ PROTECTION 7 3. In this Chapter, unless there is any CHAPTER II.—Execution of Decrees in the subject or context,— (1) “land” means land which is not occupied as the site of any building in a town or village, and is occupied or has been let for agricultural purposes, or for purposes subservient to agri- culture, or for pasture, and includes the sites of buildings and other structures on such land ; (2) “Collector” means the Deputy Commissioner I3 of a district or any officer specially empowered by the ![Central Government] to exercise the powers of a Collector under this Chapter; “Commissioner” means the Commissioner of a division or any officer specially empowered by the Y[Central Government] to exercise the powers of a Commissioner under this Chapter.] 4. 3[Onitted] 5. 3[Omitted] 6. 3[Omitted] 6-A. 3[Omitted] 7. Y Omitted] 8. 3[Omitted] 9. When custom is the rule of decision in regard to succession to immovable property then, notwithstanding any custom to the contrary, ancestral immovable property in the hands of a subsequent holder Ywhether, male or female and if female whether she holds as a limited owner or full owner] shall not be liable in the execution of a decree or order of a court relating to a debt incurred by any of his predecessors in interest: 13ubstitated for the words “State Government” by the Punjab Re-organisation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968, *Added by Punjab Act X of 1939, section 3. *Omitted by the Punjab Act No. 44 of 1960. ‘Iaserted by Bast Punjab Act ITI of 1948, Section 2, thing repugnant Definitions. Exemption of ancestral pro- g erty from lia- ility. Exemption of standing crops and trees from attachment or sale, 8 DEBTORS' PROTECTION [1936 : Pb. Act 1. when the debt has been expressly a tral immovable say of mortgage on ances pro- f)l;?trf %d t;yp‘:-egi,ecessor in interest, the court shall determine the liability of such land as if this section had not beep passed : Provided that rther, and subject to the foregoing proviso, of a debt incurred before the commence- erty in the hands of a only if all the follo wing Provided fu that, in respect ment of this Act, ancestral prop subsequent holder may be liable, conditions are satisfied :— First. That, before such liability is determined, the judgment-debtor shall be given sufficient opportunity to show cause against such liability. Second. That such liability was permitted by the rule of custom applicable to the judgement-debtor immediate- ly before the commencement of this Act, and nothing in this section shall prevent the judgment debtor from proving the contrary. Third. That the decree-holder is able to show to the satisfaction of the couit, that, at the time the debt . was originally incurred, there was a subsisting judgment or order of a competent court, not in ex parte procee dings, holding that such a custom was applicable to the sub-tribe in the tahsil to which the judgment-debtor belongs. Fourth. Thatthe judgment debtor is not able to show to the satisfaction of the court, that, at the time the debt was originally incurred, there was a subsisting judgment or order of a competent court, not in ex parte proceedings, holding to the contrary and subsequent to the judgement relizd upon by the decree-holder. . 10. Notwithstanding anything to the contrary con- tained in any other enactment for the time being in force:— () standing crops, other than cotton and sugarcane, shall not be liable to attachment or sale in the execution of a decree : s (2) standing trees a hich part from the land on W they stand shall not be liable to sale in the exe- cution of a decree or an order of a court. Kl 1936: Pb. Act IT] DEBTORS’ PROTECTION 9 [3 Such portion of the judgment-debtor’s land, not exceeding fifty percentum thereof, shall be liable to attach- ment or sale in the execution of a decrce for the pay- ment of money is in the opinion of the court, having regard to the judgment-debtor’s income from all sources except such income as is dependent on the will of another person, is sufficient to provide for the maintenance of the judgement-debtor and the members of his family who are dependent on him.] 11. (I) Notwithstanding any thing to the contrary Execution barred contained in any other enactment for the time being in ™ certain cases. force, where an application has been made to execute a decree passed after the commencement of this Act against a debtor as defined in sub-section (2) of section 7 of the Vilef Punjab Relief of Indebtedness Act, 1934, and not being a " decree granting an injunction, no order for the execution of the same decree shall be made upon any fresh applica- tion presented after the expiration of six years from— (@) the date of the decree sought to be executed; or (b) where the decree or any subsequent order directs any payment of money or the delivery of any property to be made at a certain date or at recurring periods, the date of the default in making the payment or delivery in respect of which the applicant seeks to execute the decree. (2) Nothing in this section shall be deemed— (@) to preclude the Court from ordering the execu- tion of a decree upon an application presented after the expiration of the said term of six years, where the judgment-debtor has, by fraud or force, prevented the execution of the decree at some time within six years immediately before the date of the application ; or (b) to limit or otherwise affect the operation of - article 183 of the First Schedule to the Indian oo Limitation Act, 1908. 1Clause (3) added by Punjab Act No. 44 of 1960, section 3 (2) and the Schedule, T Power to direct payment of decretal amount by instal- ment. DEBTORS’ PROTECTION [1936 ; py Agt l 10 ithstanding anything Contajney . - [11-A. 'lljgto‘z&iurc, 19038, noudecrqc for the 5 aln the el lel be exccuted by the sdlc‘ without attachymenl of monlcy :g;ointmem of a receiver of land o the pr(;?lcum’ of l?y c‘llgr an interest in land, which under an la Foy t(l:'f :inlg lLeing in force, is exempt from attachment or sale o Lt . 2 he Court may, any time on th appp o [Ol[l]:- j}dgment-dcbtor, ,_afrter g?uce 10 Lhg ch ;22 holder, direct that the amount o ilé;.ny SCree passeq again, him, waether before or after ihe commence.neng of b Pun}ab Money-leading and Debtors Protecijop Lay, (Extension and Amendmen:) Act, 1960, in respecy of : loan shall be paid is such number of Instalmenyg ang subject to sucu coaditions, on the qates fixed by1, having regard to the circumstances of the Judgmeq’ debtor ana the amount of ll}e decree, as it~ copg der, fit. During the pendency of an enquiry under section, the court may, subject to such _cond}uons, as it may impose, order the siay of execution of the decreg, Such order shall be deemed to have been passed under section 47 of the Code of Civil Procedure, 1993, an agreement between th: parties includes a stipulation chat property is to be i [ Of by way of mortgage and where both parties have agree to such costs and reimbursement such costs, charges or expenses are law of the time being in force,] ‘Inserted by Punjab Act IX of 1938, section 2, o *Section 11B and jiC insert ; ection 3 and the “gcheduje, o4 bY Punjab Act No. 44 of 1960, s 1936 Pb. Act IL.] DEBTORS’ PROTECTION 1 CHAPTER IIL.—BURDEN OF PROOF 12. Notwithstanding anything to the contrary con- Burden of proof tained in any other enactment for the time being in force, ©fconsideration. the burden’ of proving that any consideration alleged to have been paid by a money-lender ‘actually passed shall be on him ; unless the consideration is acknowledged by a debtor in his own handwriting or has been endorsed by the registering officer acting under clause (c) of sub-section Yool (1) of section 58 of the Indian Registration Act, 1908, " as having been paid in his presence.