The Punjab Relief Indebtedness Act, 1934

1834 : Pb. Act VII] PUNJAB RELIEF OF INDEB" 929 TEDNESS THE PUNJAB RELIEF OF INDEBTEDNESS ACT, 1034. PUNJAB ACT NO. VII or 1034. TABLE OF CONTENTS. PART I Preliminary. Preamble. SecTrons, 1. Short title, extent and commencement. . Interpretation clause (definitions). =] PART IL Inselvency Procedure. 3. Amendment of section 10 of the Provinelal Insolvency Act, 1820, 4. Amendment of section 74 of the Provincial Insolvency Act, 1920. PART IIL Usurious Loans. 5. Amendment of section 3 of the Usurious Loans Act, 1018, . Restrospective effect. PART 1IV. Debt Coneiliation Boards. o f 7. Interpretation clause '(definitions), 3. Setting up of Debt Conciliation Boards, Application for settlement between a debtor and his tors. 10. Verifieation of application, Particulars to be stated in application. 12: Procedure on receipt of application. _ Notice calling upon creditors to submit statements of debts. B RELIEF OF INDEB" [1934 : ?30 PUNJAB [1834 : pp, Act vy SEcTIONS | 14, Procedure on submission of statement of dabiy, 15, Bo;;d to a}tma:d amlcn‘;:jledmflemmt. 15-A, wer o to adjudicate on genyin, forcenbility of debts, genuineness o an. 16. Power of board to require attendance of persong i production of documents and to receive evidence, nd 17. Registration and effect of agreement. 18. Dismissal of application in default, 19. Bar to rl}mssigg appflicnfihn:i ; 20, Grant of certificate y board in re t of 20-A. Decision of Board to be final, _— debts, 21. Bar of civil suits. Bar of appeal or revision, Power of board to review its order, Appearance of party before board by agent or legal practitioner. Bar to new suits and applications and suspension of pending suits and applications, Extension of limitation. Members of boards deemed to be public servants, Power to make rules. Penalty for breach of the rules, PART V. Damdupat. BE NE B mp py 30. Damdupat. PART VI, 31. Deposit in Court, 22. Power of Centra) Government to male rules. PART VIL Redemption of Morigages 33. Amendment of section 1 (3) (a) of the Redemption of Mortgages (Punjab) Act, 1013, PART VIII Miscellaneous amendments of the Civil Law. 84. Immunity from arrest, 35. Amendment of section 60 of the Code of Civil Proce dure, 1608, civl 36. Amendment of Order XXI, Rule 2, of the Code of Procedure, 1008, 7. Penalty for false claim of a principal sum. 38, Penalty for use of documents containing false entries - L 1934 - M : Ph. Aot VIL] pungan mELIEF OF INDEB- 931 THE TEDNESS * “N-’ABFI:-UELIE}:A OF INDEBTEDNESS ACT, 1934 : NIAB Act No. VII or 1834, [Rec:;%eg the assent of His Excellency the Governor on the Vive ebruary, 1935, and that of His Excellency the and 1o 41d Governor-General on the 5th April, 1935, o first published in the Punjab Gazette, Extra- Nary, of the 8th April, 1935.] s L r} S ¥i 2 e No; Short title Whotlier repcaled o otherwise afefered by legislation 19341 VII |The Punjap Relief | Amonded by Punjab | Act XIT of13401 of Indsbednzss Act, 1934 Amended by 1Punjab Act VI of .542° Amended by the Adaptation of Laws Order, 1950 Amended py the Adaptation of Laws (Third Amendment), Qrder, 1951, Extendal 10 the territorics, which immedi- ately before the 1st MNovember, 1956, were comprissd in the Staic of Patiala an] East Punjab States Union, by Pun- B S T e Hasipalotilfo menided the 'l 0] il 1on {ctunum:{; Mum':‘?hn of uTon gtate and Concarrent Subjects) Order, 1968, An Act to provide for the Rellef of Indebtedness in '[Punjab]. PART I. PRELIMINARY. WHEREAS it is expedient to amend the law governing the relations between debtors and creditors ; And whereas the previous sanction of the Governor- General required under section 80-A (3) of the Govern- ment of India Act and the previous sanction of the Governor e St SN Bl e, e Pt v, 10 Exirao gea 23- 1974, Part v,'&:g:s 23—27, and for Proceedings in Council, see the i gislative Council Debates, Valume , _pages 2430, 1068- 667692, 802084, BEE—1018, -36, 480, 400—534. 41 sp.,'rusfinlemem' of Objects and Reasons, see Punjub Gozette, 1041, paie 302, and for Proceedings in Assembly, see Punjab Legislative As. sembly Debates, Volume XVIII, pages 435—30, end Volume XIX, o+ Statement of Oblects and, Ressons, see Punjab Covernment Cazette (Extrao mu;i » , D " for the words t Punjab® by the L-w'fihmd'ummmt) Order, 1051, Adeptation of e —— T — B 932 PUNJAB RELIEF OF INDER- [034: Ph, Act Vi1 TEDNESS required underl a;ei:tion 80-C of the said Act have been ob. tained ; It is hereby enacted as follows :— ot aile, &1, (1) This Act may be called the Punjab Relief of mocemect " Indsbledness Act, 1934, (2) This Part and Parts ITI, IV, V, VIIL and VI shall extend to the whole of [Union territory of Chandi. garh] and Part II to such areas as the ’lC_entral_ Govern- ment] may from time to time, by notification, direct. (3) This Act shall come into foree on such date® as the *[State] Government may, by notification, appoint in this behalf, et 2. In this Act, unless there is anything repugnant (Defnitions.) in the subject or context,— “I(1) “Court' or ‘Civil Court’ includes a Court of insolvency, a receiver appointed under the Provincial Insolvency Act, 1920, and an arbi- trator appointed with the consent of the parties or by an order of a Court.] *(2) “Interest” means rate of interest and includes the return to be made over and above what was actually lent whether the same is charg- ed or sought to be recovered specifically by way of interest or otherwise - *(3) “Loan” means a loan whether of money or in kind, and includes any transaction which is, ;n the opinion of the court, in substance a oan. _*Substituted for the word “Punjal Pun) nisation gfil\d-:andiizgafl {Adaptation uor an: }:n sgelma Oom %ubjem) 8T, A “Substituled for the word “Provinelal Adaptation of Laws Order, 1950 - S ey *The Act e into force on 10th April 1935, by notification No. 16639 (Home-Tudictel), dated 18th- April pgar’®> bY o ‘Inseried bf' Punjab XII of 1840, section 2 (b). *Exist auses (1) (2) renumbered 2 ), Tespec- tively, by’?‘l‘.u:jah Act, XII of 1040, section !.:a}..' W0 o 9 1934 - 45 Ph Aet VIL) pungan RELIEF OF INDE#- 933 i TEDNESS PART 11 InsoLveney Procenune, ey G men 3 s én feetion 10 (1) of the Provincial Insolvency e Vv oor Act o0, o 162 5 ag_etz the existing clause (a) the following clause o4, 150 (aa) his debts amount to two hundred and fifty Tupees, and he satisfies the court that he is en- titled to summary administration of his estate under section 74 of this Act ;or” 4. In section 74 of the Provineial Insolvency Act,Amentment of 1920, for the words “five hundred rupees” the words “twe Fotlod 7¢ L Te t rupees” shall be substituted, vency Aet, 1920. PART III. Usurtous Loans. X of 5. In section 3 of the Usurious Loans Act, 1918— Amandment of . (3) for the word “and” in clause (a) of sub- Lowss Act, 1818, section (1) the word “or” shall be substitut- d . (i) for the word “may” where it appears for the first time in sub-section (1) the word “shall” shall be substituted ; (iii) for the word “may" after the word “namely” in sub-section (1) the word “shall” shall be substituted ; [{iv) to sub-section (2) the following clause shall be added, namely :— (e) The Cour shall deem interest to be excessive if it exceeds seven and-a-half per centum per annum simple interest or is more than two per centum over the Bank rate, which- ever is higher at the time of taking the loan, in the case of secured loans, or twelve and. a-half per centum per annum simple interest in the case of unsecured loans : Provided that the court shall not deem interest |n excess of the above rates to be excessive if “Substituted for the old d.nfm: by Punjab Acl XII?ID-W‘ lu:'fio; 3 Restrospective elfect. Interpretation 934 PUNJAD RELIEF o;:;ng- (1934 : Ph. Act VII. s has been advanced by the Imperial gfil{?fl India or any bank included in the Second Schedule to the Reserve Bank of India Act, 1934, or any banking com registered under the Indian Companies Act, 1913, prior to the first day of April, 1037, or any co-operative society registered under the Co-operative Societies Act, 1912.] 6. e provisions of this part of the Act shall apply to all suiTht.s ppend'mg on or instituted after the commence ment of this Act. PART IV. Desr CoNCILIATION BOARDS. 7. (1) “Debt” includes all liabilities of a debtor in clause (defini- \ach or in kind, secured or unsecured, payable under a tions). _ decree or order of a civil court or otherwise, whether mature or not, but shall not include debts incurred for the purposes of trade, arrears of wages, land revenue or any- thing recoverable as an arrear of land revenue, or any debt which is barred by the law of limitation, or debt due 10 co-operative banks or to co-operative societies or to the Tmperial Bank of India or to any banking company re- gistered under the Indian Companies Act, 1913, [prior to the first day of April, 1937, or any bank included in the Second Schedule to the Reserve Bank of India Act, 1934, other than debts transferred to such societies, banks or banking companies during the pendeney of an application under section 9 in which such debts could be taken into consideration for the purposes of this Act, or debts trans- ferred to such societies, banks or banking companies on aor after the 2nd day of September, 1938, if in the opinion of the board such transfer was effected with a view to avoid the operation of this Aet.] (2) “Debtor” means a person who owes a debt and— (i) who both earns his livelihood mainly by agri- culture, and is either a landowner, or tenant of agricultural land, or a servant of a landowner, or of a tenant of agricultural land, or Subatit " the {ime bopd for the words or the ltw relatin ; to for section & (o) & " Oren 0 British Indja’ by Punjiib Act, X1 of 1040, e, 1913, VI of 183 Killof 1903 1934 : Pb. Act vII) PUNJAD RELIEF OF INDEB- 935 TEDNESS (i) who earns his livelihood as a village menial Paid in cash or kind for work connected with agriculture, '[or] ‘[(fii) whose total assets do not exceed five thousand Tupees]: Provided that a member of a tribe, notified as agri- cultural under the "Punjab Alienation of Land Act, 1900, shall be presumed to be a debtor as defined in this section until it is proved that 15 income from other sources is greater than his income from agriculture, Explanation, (i) A debtor shall mot lose his status as such th_mngh involuntary unemployment or on ac- count of incapacity, temporary or permanent, by bOd_fl,S' infirmity, or, if he is or has been in service of ‘IMilitary, Naval or Air Forces of the Union], only on account of his pay and allowances or pension exceed- ing his income from agricultural sources. (i) A debtor shall not lose his status as such by reason of the fact that he makes income by using his plough cattle for purposes of transport. (iii) A debtor shall not lose his status as such 0nly§becau5e he does not cultivate with his own hands. (3) “Agriculture” shall include horticulture and the use of land for any purpose of husbandry inclusive of the keeping or breeding of livestock, poultry, or bees, and the growth of fruit, vegetables and the like. (4) “Prescribed” means prescribed by rules made under this part of the Act. Add b Act XIT of 1840, gection 4(b) (i), Y Iy, Paciib Aot 31T of 1040, seetion Q. SRgepealed the Adaptation of Laws (Third Amendment) Order 1??_;‘5.,st1|.,-ed for the words “His Majesty's Military or Naval [er Air] Forces” by the Adeptation of Laws (Third Amendment) Order of 1051, After the word “Naval”, the words “or Air" had been inserted by Punjab Act, XII of 1040, section 4 (e). tThe warde “if any question arises in procecdings under this pert of the Act, whether a person is & debtor or not, the decision of & Debt Coneiliation Board shell be fine]” cmitted by Punjab Act, VI of lda section & N | Settng up of Debt Conclliation Boards. 936 PUNJAB RELIEF OF INDEB- 1034 : Ph, pq v TEDNESS 8. (1) The '(Central Government) may for the purpose of amicable settlement between dehtorg and their ereditors establish debt coneiliation boards (b) The '[Central Government] shall define 4 local limits of the area in which a board sha]] hava jurisdiction. (c) The '[Central Government] shall determine the pecuniary limits of the jurisdiction of the board, pro. vided that no board shall have jurisdiction to make a settlement between a debtor and his creditors if the totg] debts of the debtor exceed Rs. 10,000 or such larger amount as the *[Central Government] may prescribe for any area. (d) Such board shall consist of a chairman and ‘[one] or more members to be appointed by the '[Central Government] '[Provided that no act done or proceeding taken by a board under this Act shall be called into question on the ground merely of the existence of any vacancy in any board]. (e) The chairman and every member of aboard so established shall be appointed for a term not exceed ing three years, but shall be eligible for_ re-appoint- ment on the expiry of his term. (f) The quorum of a board shall be prescribed by the *[Central Government]. (9) Where the chairman and members of a board @€ not unanimous, the opnion of the majority shail prevail and, if theboard is equally divided, the chair man shall exercise a casting vote. (2) The ‘[Central Government] may cancel the sppointmert of any member of a board or dissolve any board, . -‘Suhalnuu I}ur the wn;t;n “State Go\:vemman;; iu; ‘h'_“'";.h Reorganisation (Chandigarh) and Cont urrent Subjecis) Order, mwltkd.nptaljon %% T on S n'fa;u:f:?,luud for the word *“fwo* by Punjab Act, VI of 1043 #&° The provieo sdded by Punjab Act, VI of 1943, sectlon 3 (B} tio "" 1934 : Ph. Aq VIL] eungan neLer OF INDEH- 937 !R.'Dlm_ss (3) The *[Centra the Ofcial Gugetigler oo shall notify in (a) the establishment of a board and the Appointment of its members: and the board shall be deemed to have boen cstablished and its members appointed from the date specified in such notification or notifica- tions; (b) the cancellation of the appointment of any mem_ber of a board; and from the date speci- fied in such notification the member shall cease to be a member of the board; (c) the dissolution of a board; and from the date specified in such notification the board shall cease to exist. (4) When a board is dissolved or ccases to exist otherwise, the '[Central Government] may at any time establish another board within the same local limits in which the former board and jurisdiction and may declare this board to be the successor in office of the first board and may confer on it power to dispose of such applications under section 13(2) and section 23 as the '[Central Government] may direct. 9. A debtor or any of his creditors may apply to application ror the board apoointed for the area in which a debtor ;fif’:flt deg;g; rezides or holds any land, to effect a settlement betwesn T3 creditare the debtor and his ereditors Provided that no application shall be made if the debtor's debts exceed ten thousand rupees or such larger sum as the ‘[Central Government] may pres- cribe for any particular area. 10. Every application to a board shall be in versca writing and ;i signed by the applicant and verified in appliention, | <uch manner as may be prescribed — o0 The wfi;gfl;m Government” 'b!-'_ the P:\'-Hjlh Rm‘;rm‘littl‘::‘:d tc?:;undfmrhi (Adsptation of Laws on State and Con- B. T ror he' word “Cazelte" by the Goverament of Indi { Adaptation of Indfsn Laws) Order, 1037 938 PUNJAB RELIEF OF INDEB" [034: Pb. Act vy TEDNESS Particulars {0 . (1) Every application presented by a debtoy b;fi:m:& "0 a%omsd)shall ontin the following particulars, ' namely,— (a) the place where he resides or holds land; (b) the particulars of all claims against him together with names and residences of hj creditors; (c) the particulars of all his property, together wity a specification of the value of such property and the place or places at which any such Pro- perty is to be found ; (d) a statement that he is unable to pay his dehis, and that they do not exceed the preseribed amount ; 'l(e) a statement whether he has previously filed an application in respect of the same debt before the same or another board, and if so, with what result.] (2)Every application presented by a creditor shall contain the following particulars, namely,— g (a)_the place where the debtor resides or holds land ; (b) the amount and particulars of his claim ‘against such debtor ; (¢) a statement that the debtor is unable to pay his debts. Procame % 1% (1) On receipt of an application under section 9 e T the board shall pass an order fixing a date and place for hearing the application : Provided that the board may at any time dismiss the application if, for reasons to be stated in writing, it does not consider it desira ble to attempt to effect a settlement between the debtor and the creditors, (2) Notice of the order under sub-section (1) shall be sent to creditors by registered post, acknowledgement due, and where the debtor is not the applicant, notice of the order under sub-section (1) shall be sent to hif in a similar manner., 'Added by Punjab Act, VI of 1042, section 3-4, 1934 . Ph. Act VIL] PUNJAR RELIEF OF INDED- 939 TEDNESS 13. (1 Notie® eiitors L, mf_m%eglgsthe date fixed the board shall publish, ,pon ereds ereditors ; may be preseribed, a notice, calling upon to submit ~state- 3‘;&;‘? :;e:‘;t%r of the debtor to submit a statement of debts ments of debis shall be subm; creditor by the debtor, Such statement tted to the board in writing within two months from the date of publication of the notice : Provided that, if {he board iz satisfled that an; i) 3 y creditor :;:;; é?"' good and sufficient cause, unable to comply with sub l‘r'.":u on 'or to produce the documents required under oetion (1) of section 14] withn the time fixed, it may the d¢ the period for the submission of his statement of m:ni:?ts owed to him *[or for the production of such docu- *1(2) Every debt owed to a single creditor of which no such statement has been submitted to the board in com- pliance with the provisions of sub-section (I) shall be deemed to be duly discharged for all purposes and all oc- casions against such creditor ; and every debt owed to two or more creditors jointly, of which such a statement or statements signed by all such ereditors 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 or statements, but only to the extent of their respective shares in the said debt : Provided that no such debts shall be deemed to be dis- charged against any creditors whose names have not been included in the application made under section 9. (2) If the creditor or any of the joint creditors fails without sufficient cause to be present in person or by his recognised agent or legal practitioner in accordance with the provisions of section 24 at any of the hearings fixed by the board, or fails to produce full particulars and doeu- ments as required under sub-section (1) of section 14, the debt due to him or to the joint ereditors, as the case mav be, shall be deemed for all purposes and all occasions to have been fully discharged. (4) If any creditor proves to the satisfaction of the board, or if no board is vested with jurisdiction by the Hnserted by Punjeb Act, XII of 1040, section (a) (i), rAdded m?y Punjaai Aet, T of 1940, seetion 5Ga) L), sEubutituted far sub-zection (2) of section 13 by Punjab Aett XI1 o 1940, section 5 (b). e 940 PUNJAB RELIEF OF INDEB- [1034 : Ph Ag Vil TEDNESS : al Government], to the satisfaction of a civil court, tfi:nti:‘e n(gtice was not served on him and that he had ng knowledge of its publication or that he was unavoidably absent at any of the hearings fixed by the paurd, the boarg or the court, as the case may be, may revive that debt,] Procedure on 14, (1) Every creditor submitting in compliance submission of wiyhy nogicaz issuezi under sub-section (1) of section 13 4 '::mm’ * 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) on which he relies to support his claims, together with a true copy of every such doey. ment : Provided that a decree or order of a civil court shal] be conclusive evidence as to the amount of the debt to which the decree relates, but the amount may be reduced as the result of an agreement arrived at in accordance with sec- tion 17. (2) The board shall, after marking for the purpose of identification every original docurnent sg produced and verifying teh correctness of the copy, retain the copy and return the original to the creditor. *[15-A. (1 If i m}::f: d;; E:.:: WL (1) 1f a creditor or debtor, as the eage may Fenuinen enges the genuineness or enforceability of any debt board shall adjudicate upon exforceatitity g included in an application, the debta. the issue.] (2) Any person aggrieved by a decision of the board under sub-section (1) m. lector or such other offic ituted for the words “State Government” the Punjab oh A Adaptatlon of Laws on St:,lll and Con- V of 1R08. R — 1834 : Ph, Act VIL] pungan RELIEF OF INDER- 941 TEDNESS (4) An ap, Peal shall not lie from an order refusing to review op confirming on review a previous order, . no ni;;ial?mwm]Sl'—'"ding anything hereinbefore rontained, o or . Abplication for revision shall lie against gregata :nfigc‘ ];? t]“".‘ll under sub-section (1) unless the ag- e i . preterred exceeds items in regard to which the appeal is two thousand rupees. (6) No order passed i % to question in a ciEl? mur:?der Vi saciiia A1l bepec 16. Any board empowered under this Act MAY eXer- power of Board cise all such powers connected with the summoning andto requre at- examining of parties and witnesses ‘and with the produe- tendance of per- tion of documents as are conferred on civil courts by the "o, “:& w::mw Code of Civil Procedure, and every proceeding before the ments and to re- boa_rd shall be deemed a judicial proceeding. smire y 17. (1) If the debtor and all or any of the creditors Registration come to an amicable settlement, the board shall forthwithand effect of reduce such settlement to writing in the form of an agree- ment setting forth the amounts payable to each creditor and the manner in which and the times at which they are to be paid. Such agreemnt shall be read out and explain- ed to the parties concerned, and shall be signed or other- wise authenticated by the board and the parties : provided that if the board is of the opinion that the period fixed for payment is excessive, the board may refuse to authenti- cate the agreement. The board shall also pass an order dismissing the application so far as it relates to the creditors woh have not come to an amicable settlement. (2) An agreement thus made shall take effect as if it were a decree of a civil court having jurisdiction in the area of the jurisdiction of the board. 1[(3) Notwithstanding anything contained in the [ndian Registration Act, 1008, or in the rules made there. under an agreement made under bub-section (1) shall not be liable to registration.] Inserted by Punjsb Act, XTI of 1040, section 1. : 042 .PUNJAB RELIEF OF INDEB= (1934 : Ph, Aoy Vi : TEDNESS ' Dismissal of 18 . If in the opinion of the board any applicant faily sppleations 4o conduet his application with due diligence, the by i e may dismiss the application at any stage. Bar to e 19. If once an app!icaf].:o;'i hn&: bfe_n made h};]a debtop Slve ®9Plied- and disposed of, no board shall entertain a secon applica- . tion within two years of the date of disposal of the firgt ap- plication, St oot 20. (1) Where, during the hearing of any applica. feate wmb;‘_mn made under section 9, any ereditor refuses to agree to an amicable settlement, the board may, if it is of opinion that the debtor has made such creditor a fair offer which the creditor ought reasonably to accept, grant the debtor a certificate, in such form as may be prescribed, in respect of Lh:e debts owed by hnzl to mich cre:'ditor. Power of eourt (2) Where any creditor sues *[or takes out execution or interest. proceedings] in a eivil court for the recovery of a debt in respect of which a certificate has been granted under sub- section (1), the court notwithstanding the provisions of any law for the time being in force, shall not allow the plaintiff any costs in such suit *for proceedings], or any interest on the debt after the date of certification under sub-section (1) . - L * L (3) Where after the date of an agreement made in accordance with section 17 or of certification any unsecur- ed creditor sues for the recovery of a debt in respect of which a certificate has been granted under sub-gection (1) or any creditor sues for the recovery of a debt incurred after the date of such agreement, any decree passed in such suit notwithstanding anything contained in the Code of Civil Procedure, 1908, sha]l not be executed until siX months after the expiry of the period fixed in the agree- ment authenticated under sub-section (1) of section 17. “The proviso omitted by Punjab Act, XIT of 1040, section 8 (@) Inserted by Punjab Act, XII of 1040, section § b (. Unserted by Punjab Act, XII of 191p, section 8 (b) (i), ‘The words “in excess of simple interest at six per centum T; annum on the smount due on (he date of h certificate” omitted Punjab Act, X11 of 1940, section 8 rme ri{i:mc SO, v 1908, R e — 1834 : Pb. Act VIL) runsan neuizr oF INDEE- 943 ‘TEDNESS '1(4) Where after the date 1 of an agreement made in :mdg;:ee Wwith section 17 or of certification any unsecur- ey ;‘Or BDDI_les for the execution of a decree in respect (1) mfl a certificate has been granted uuder sub-section {a. e said decree notwithstanding anything contained n the Code of Civil Procedure, 1908, shall not be executed until six months after the expiry of the period fixed in the .t!igol;flil}'u]mt authenticated under sub-section (1) of sec- *120-A. If any question arises in any proceedings p Destien = under this part of the Act whether a loan or liability is a anal. debt or not, or whether a person is a debtor or nut, the de- cision of the Debt Conciliation Board shall be final, and shall not be called into question in any court.] 21. *Save as otherwise provided in this Act], no civil Bar of bl court shall entertain— gy (a) any suit “[appeal or application for revision]— (i) to guestion the validity of any procedure or the legality of any “(order or agreement made or certificate issued] under this Act, or (ii) to recover any debt recorded as wholly or partly payable under an agreement made in accordance with section 17 from any per- son who, as a debtor, was party to such appli o :i:z upf which is suspended under '[sub- kection (3) or (4)] of sectioiao z *Section section ¥ *pserted E! Punjab Act, XII of 1640, section b; (. flSubstit.me«q sor the words “Bgreement made” by Punjab Act, XIL of 1080, e L L op-section (1) of section 13" by Mfifi.fi‘:fi'« 1040, secton (33" by Punjab Act, XII of 1040, sec- tion 9 (€. —— T e 944 PUNJAB RELIEF OF INDEB- [1934 : Ph A viI TEDNESS : *[(c) any suit for a declaration, or any suit or appli. eation for injunction, affecting any Proceeding, under this Act before a board.] Bar of appesl 22 *[Save as otherwise expressly provided , in thig Act] no appeal or application for revision shall lie against any order passed by a board. Power of hoard 23. A board may, on the application from any person ?m.uflew ¥ interested, review any order passed by it and Pass such orders as it thinks fit : Provided that it shall not under this section pass an order reversing or modifying any order affecting any per. son 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 which the person interested seeks to have reviewed. Appearance of 24. In any proceedings under this part of the Act, i U h,';:'meafl?' party may '[* * * ® & ¢ e pe reprasented by ar by legal prac- an agent authorised in writing or ‘[with the permission of Hthosies. the board] by a legal practitioner. Bar to new sults and appli- 25. %(1) When an application has been made to a il end sus- = [ : . - penston of pena. L0ard under section 9 *[or section 23], no civil court shail ing ruits and ap- €Ntertain any new suit or other proceeding brought for the plications, recovery of any debt “[covered by such application] and *Added by Punjab Act, XIT of 1940, section 9 (d). "Inserted by Punjob Act, XIT of 1840, section 10. *The words “with the permissi board” omitted by Punjsb Act, XII of 1040, section 11 ¢y " °F the el “Inserted by Punjab Act, XTI of 1840, sectiom 11 (b). #Section 25 renumbered b 25 by Punjsb Aet, AT of 1oga: “.as sub-section (1) of gection “Inserted by Punjah Act, XII of 1940, section 12 {a) (8. TSubstitutey for the words “for the settl t of which application 18 (b3 hypaded 1o the boord” by Punjab Act, XIT of 1010, secton a . i R —— 1934 ; : Ph. Act VI PUNJAR RELIEF OF INDEB- 945 _ TEDNESS any suit or other proceed) in res ing pending before a elvil court boardpfi;; gfsfififi such debt shall be suspended until the sed the 1 been made under sectionfl?'?,hcaflon o.an. agrosnsnt has "1(2) When an i N 4 Y execution a civil court is suspended unde proceeding penciing before animal has been attached and r sub-section (1), and any connecti : made over to suparddar in Thall b;m _with such proceeding, the judgment-debtor 2 entitled to the return of such animal but shall not be competent to sell or in any way part with the ownership of any animal so attached during the suspension of such proceeding ; and if the judgment-debtor has been commit- ted to a civil prison in connection with such proceedings he shall be released forthwith.] 26. The time spent in proceedings before a concilia- mstension of tion board and time during which a person is debarred Limitatien. from suing or executing his decree under the provisions of this Part of this Act shall be excluded when counting the period of limitation for any application, suit or appeal. it ok 27. The memberst of a board shall be deemed to be pembers of se0. public servants within the meaning of the Indian Penalpoards dezmed to Code. ; T Fbe public ser- . vants, 28. (1) The *[Central Government] may make any Power to make rules consistent with this Part of this Act to carry out the rules: purposes thereof, and in particular and without prejudice to the generality of the foregoing power may make rules— (a) prescribing the amount of debt for the purposes of section 8 (1) (c) : {b) prescribing the quorum for and regulating the procedure before a board | (¢) prescribing the charges to be made by a board for anything done under this Act and the per- sons by whom and the manner in which such charges shall be paid ; (d) preseribing the records to be kept and the re- turns to be made by a board | ded by Punjub Act, XII of 1040, section 12 ([_.)_ I'é\l:llhufil.ui{d for the words “State Covernment by the Punjab Feorganisation (Chandigarh) tAdoptation of Laws on State and Cop- current Subjects) Order, 1988, 946 PUNJAB RELIEF OF INDEB- [1034 : Ph, g v TEDNESS : (e) preseribing the allowances to be pald to mem. bers of at::oardh; — _— *[(ee) prescribing the culars of de % sug-sectiun (1) of section 14;] Undap (f) prescribing the place at which and the Manner in which an agreement shall be registered ; (g) prescribing the form of cerlificate to be grans. ed under sub-section (1) of section 20 ; ang (h) generally, for the purpose of carrying into effect the provisions of this Part of this Act. (2) The power conferred by this section of making rules is subject to the conditions that the rules be made after previous publication. prenen ot e 29. In making any rule the *[Central Government] rules, may direct that a breach thereof shall be punishable with fine which may extend to fifty rupees, and, where the breach is a continuing one, with further fine which may extend to ten rupees for every day after the first during which the breach continues. PARTV DaMDUPAT. Damiupat. 30. °I(1) In any suit brought after the commence- ment of this Act in respect of a debt as defined in section 7, advanced before the commencement of this Act no court shall pass or execute a decree or give effect to an award in respect of such debt for a larger sum than twice the amount of the sum found by the Court to have been actually advanced, less any amount already received by a creditor in excess of the amount due to him under clause fi{,olfgil;b]-secfion (2) of section 3 of the Usurious Loans '1(2) In any suit in respect of a debt as defined in section 7, advanced after the commencement of this Act, 10 Court shall pass or execute a decree or give effect to an “Inserted by Punjeb Act XII of 1040, saction 19, i RLor.f:lrbi:Elm r ém- Eu :m d"Stnte Government” by tbnd s = i N e tati - current Subjects) Order, 1088, " °f Laws on State an v;r.'u‘::bnmfluiu;m for the old sub-section (1) py Punjab Act XIT of 1040 B ). “Substituted for the old sub-seetion (2) by Punjob Act XII of 1940, section 14 (b)), 1934 : Pb, Act VIL] PUNJAD RELTEF OF INDEB- 947 TEDNESS . award in respect of such d ebt for a larger sum than twice the amount, of the sum found by the Court to have been act; crcléiilig.]a-dvanced less any amount already received by a (3) Where in any proceeding concluded on or after the :‘i’th ga]f of Odob{fl‘, 1039, any de%ree has been passed or an ard has been given by an arbitrator against a debtor in respect of a debt as defined in section 7, which is not in con- formity with sub-sections (1) and (2), such decree or award shall be avoidable at the option of the debtor on whose application, made within six months from the com- mencement of the Puniab Relief of Indebtedness ( Amend- ment) Act, 1940, the Court shall set aside the decree or award, reopen the fransaction and pass such order as may be in conformity with the provisions of this section. . (4) Nothing in this section shall be deemed to entitle any person to claim a refund of any sum already paid except by adjustment under sub-section (1).] PART VI. DerasiT v COURT. 31. (1) Any person who owes money may at mymnril'fl'“ in time deposit in court a sum of money in full or part pay- ment to his ereditor. (2) The court on receipt of such deposit shall give notice thereof to the creditor and shall, on his application, pay the sum to him. (2) From the date of such deposit interest shall cease to run on the sum so deposited. 32. (1) The '[Central Government] may make rules Fower o for carrying into effect the provisions of this Part of this Stniral Govern. to make Act. § rules. (2) In particular and without prejudice to the genera- lity of the foregoing powers such rules may provide— (a) for determining the court into which the sum ghall be deposited ; "~ igunatiuted for the words LB e on Sate ad. Cone isation (Chandiga guwfi‘:g:{‘JSubieclfl Order, 19 948 pUNJAB RELIEF OF INDEB 11834 : Pb. Act vy, ‘ TEDNESS (b) the procedure for keeping accounts of such de. posits and the manner in which notices are to be served on creditors and payments made to them, (3) The power conferred by this section of making rules is subject to the condition that the rules be made after previous publication. . PART VII. REDEMPTION OF MORTGAGES. Amengment o 33 1In section 1, sub-section (3) (a) of the Redemp. seeton o, tion of Mortgages (Punjab) Act, 1913, for the figures and tion of Mortza-word “30 acres” the figures and word “50 acres” shall ges (Puniab) po cubstituted, and in sub-section (3) (b) of the same RERi section for the figures “1,000” the figures *5,000” shall be substituted. PART VIIL MISCELLANEOUS AMENDMENTS oF THE CrviL Law it i [34. No debtor as defined in section 7 of this Act shall be arrested or imprisoned in execution of a decree for money, whether passed before or after the commencement of this Act.] Amendment of *(35. In section 60 of the Code of Civil Procedure, section 60 of the Godem of Civil 1908— it (a) in sub-section (1) *[in the proviso],— (i) in clause (c), for the words “occupied by him” the following words shall be deemed to be substituted, namely :— “not proved by the decree-holder to have been let out on rent or lent to persons other than his father, mother, wife, son, daughter: daughter-in-law, brother, sister or other dependants or left vacant for a perlod of a year or more"; " Substituted for the old section by Punfeb Act XIT of 1840, section 18 *Substituted for the old section by Punjeb Act XTI of 1940, sectiod SIngerted by Punjab Act VI of 1942, section (§) (i), el 191, v 1908, 1834 Pb. Aet VIL] punan rpsse OF INDEE- 949 TEDNESS (i1) after clause (c), the following clauses shall be deemed to be inserted, namely :— “(cc) Milch animals, whether in milk or in calf, kids, animals used for the purposes of transport or draught cart and open Spaces or enclosures belonging to an agri- culturist and required for use in case of need for trying cattle, parking carts, or stacking fodder or manure ; (cce) one main residential house and other buildings attached to it (with the mate- rial and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belong- ing to a judgment-debtor other than an agriculturist and occupied by him : ‘[Provided that the protection afforded by this clause shall not extend to any property specifically charged with the debt sought to be recovered.] (b) after sub-section (2), the following sub-sec- tions shall be deemed to be inserted, namely :— (3) Notwithstanding any other law for the time being in force an agreement by which a debtor agrees to waive any benefit of any exemption under this section shall be void. (4) For the purposes of this section the word “agriculturist” shall include every person whether as owner, tenant, partner gr agri- cultural labourer who depends for his live- lihood mainly on income from agricultural land as defined in the “Punjab Alienation of Land Aet, 1900. 5) Every member of a tribe notified ag agricul- ) tural under the *Punjab Alienation of Land ted for the words “Provided that the protection afforg, mmflfi‘tmdnumtmww which has been odlq by Punjab Act VI of 1842, section 5 (ii). morigaged 2Repesled by the Adaptation of Laws (Third Amendment) Order of 1851, 950 PUNJAB RELIEF OF INDES" [1934: Ph, po vir TEDNESS : Act, 1900 and every member of 5 5 led caste shall be presumed 1{g be a;h:::f: culturist until the contrary is Proved, (6) No order for attachment shall be made un] the court is satisfied that the Pl‘ope??; sought to be attached is not exempt fropy, attachment or sale. 36. In Order XXI, Rule 2, of the Code of Civil Proge. 3 o the Osde oy dure, 1908, sub-rule (3) shall be omitted. Voo Civil Procedure, 16 1808, Fenalty for false chuim o s 97+ Where, in a suit for the recovery of a loan, the as been the eourt */shall disallow the whole claim with costs, unless the creditor satisfies the court that the wrong entry was accidental or was the result of a bona fide mistake,] cription which may extend to three months or with a fine not exceeding one thousand rupees or with both. (2) If the court is satisfied, after such preliminary en- quiry, if any, as it thinks necessary that there is ground for enquiring into an offence under sub-section (1) the court may record a finding to that effect and prefer a complaint of the offence in writing to a magistrate of the first class hav- ing jurisdiction, and such magistrate shall deal with such complaint in the manner laid down in the Code of Crimina! Procedure, 1898.] ‘Inserted by Punjab Act XII of 1840, section 17 (e). pole *Substituted for the words “may at jig disallow l.hu;'é; of uranypartotthe:umdaimodbyfluphmw'wmah&fl 1940, section 17 (b). Shdded by Punjab Act XII of 1040, section 18,