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The Tamil Nadu Indebted Agriculturists Repayment of Debts) Act, 1955) Complete Act - Bare Act

StateTamil Nadu Government
Year
Act Info:
THE TAMIL NADU INDEBTED AGRICULTURISTS REPAYMENT OF DEBTS) ACT, 1955)
THE [TAMIL NADU] INDEBTED AGRICULTURISTS
(REPAYMENT OF DEBTS) ACT, 1955).
[ACT 1 OF 1955]
CONTENTS
1. Short title extent and commencement
2. Definitions
3. Bar of suits and applications
4. Payment of debt in installments
5. Deposit of debt into Court.
6. Appeals.
7. Presumption as to transfer of immoveable property of the debtor.
8. Exclusion of time for limitation.
9. Effect of payment or deposit under section 4 or section 5.
10. Power to make rules.
[Received the assent of the president on 27.2.55 and first published on 1.3.55]
An Act to give relief to indebted agriculturists in the [State of Tamil Nadu].
WHEREAS it is expedient to enable the indebted agriculturists to repay their debts in easy installments;
Be it enacted in the Sixth Year of the republic of India as follows:--
1. SHORT TITLE, EXTENT AND COMMENCEMENT " (1) This Act may called the 1 Substituted by the Tamil Nadu Adaptation of Laws Order 1967 as amended by the Tamil Nadu adaptation of Laws (Second Amendment) Order 1969. [Tamil Nadu], Indebted Agriculturists (Repayment of Debts) Act, 1955.
2. It extends to the whole of 1 [Substituted by the Tamil Nadu Adaptation of Laws Order 1967 as amended by the Tamil Nadu adaptation of Laws (Second Amendment) Order 1969. [State of Tamil Nadu].
[(3) It shall come into force at once.]
NOTES
S.1: Scope of the Act ILR (1957) Ker. 770;
2. DEFINITIONS " In this Act, unless the context otherwise requires "
(a) ˜agriculturist' means a person who has an interest other than interest as a simple mortgage in any agricultural or horticultural land hot being a land appurtenant to a residential building but shall not include "
(i) any person liable to pay land revenue (which shall be deemed to include peshkash and quit-rent) exceeding one hundred and fifty rupees per annum in any year after 1952-53.
(ii) any person assessed to profession tax on income derived from a profession other than agriculture under any law governing municipal or local bodies in Indian on a half-yearly income of more than nine hundred rupees in any half-year after 1952-53.
(iii) any person assessed in any half-year after 1952-53 to property or house tax on an annual rental value of [not less than] rupees six hundred in respect of buildings (other than a building in which he lives] or lands other than agricultural lands under any law governing municipal or local bodies in India;
(iv) any person assessed to sales tax on a total turnover of not less than twenty thousand rupees in any year after 1952-53 under the Madras General Sales Tax Act, 1939 (Madras Act IX of 1939), or [under the law of any other part of India relating to sales tax];
(v) any person assessed to income-tax under the Indian Income-tax Act, 1922 (Central Act XI of 1922), in any year after 1950-51;
(vi) a firm registered under the Indian Partnership Act, 1932 (Central Act IX of 1932), or a company as defined in * the Indian Companies Act, 1913 (Central Act VII of 1913), or a Corporation formed in pursuance of an Act of Parliament of the United Kingdom or of any special Indian law;
Explanation 1. " Where a joint Hindu family or tarward, tavazhi, kutumba or kavaru, is an agriculturist, every coparcener or member of the tarward, tavazhi, kutumba or kavaru, as the case may be, shall be
deemed to be agriculturist provided that he does not fall under any of the categories specified in sub-clauses (i) to (v).
Explanation II: -- The provisions of this Act shall not apply to any person who though an agriculturist was not an agriculturist on the 1st October 1953;
(b) ˜debt' means any liability in cash or kind whether secured or unsecured, due from an agriculturist on the 1st October 1953 whether payable under a contract or decree or order of a court, civil or revenue, or otherwise, but shall not include "
(i) any sum payable to the state or the Central Government or to any local authority;
(ii) any sum payable to any co-operative society including a land mortgage bank, registered to deemed to be registered under the * Madras Co-operative Societies Act 1932, (Madras Act VI of 1932), provided that the right of the society to recover the sum did not arise by reason of an assignment made subsequent to the 1st October 1953;
(iii) any liability arising out of a breach of trust;
(iv) any liability in respect of maintenance;
(v) any liability in respect of wages of remuneration due as salary or otherwise for services rendered; or
(vi) any liability incurred or arising under any Chit Fund Scheme.
Explanation 1. " Where a debt has been renewed or included in a fresh document executed after the 1st October 1953 whether by the same debtor or by his heirs, legal representatives or assigns or by any other person acting on his behalf or in his interest or as a result of a partition, in favour of the same creditor or his heirs, legal representatives or assigns or any other person acting on his behalf or in his interest or as a result of a partition, in favour of the same creditor or his heirs legal representatives or assigns or any other person acting on his behalf or in his interest or as a result of a partition the amount outstanding on the 1st October 1953 and included in the document executed after the 1st October 1953 shall alone be treated as the debt for the purposes of this Act.
Explanation 11. " Where a debt has been split up after the 1st October 1953 among the heirs, legal representatives or assigns of a debtor or a creditor or as a result of a partition and fresh documents have been executed in respect of different portions of the debt each of the different portion shall be a debt for the purpose of this Act.
NOTES
S.2 " Explanation 1 " Scope of " (1959) 2 M.L.J. 420;
S.2(a) " Hindu joint family " Kist " Payment in excess of the limit prescribed " National scheme of each member " relevant (1959) 2 M.L.J. 38 NRC.
S.2(a) " Explanation III " Scope " 75 L.W. 461;
S.2(a) " "agriculturist" meaning of (1968) 1 M.L.J. 44;
S.2(b) " Explanation ii " "Debt due" " Meaning of " (1961) 1 M.L.J. 91. AIR (1958) Mad. 217;
Debt " Payment of " Installments Act does not contemplate break up of integrates of debt I.L.R. (1966) 1 Mad. 18;
S.2(b) Installment " decree " Limitation " Calculated only from the date of failure to pay anyone of installments 81 L.W. 50;
3. BAR OF SUITS AND APPLICATIONS. " (1) No suit for recovery of a debt shall be instituted, and no application for execution of a decree in respect of a debt shall be made, against any agriculturist in any Civil or Revenue Court before the expiry of four months from the commencement of this Act.
Explanation 1. " Where a debt a payable by an agriculturist jointly or jointly and severally with a non-agriculturist, no suit or application of the nature mentioned in this sub-section shall be instituted or made either against the non-agriculturist or against the agriculturist before the expiry of the period mentioned in this sub-section.
Explanation II. " For the purpose of this Act, a suit in which a decree in respect of a debt is prayed for shall be deemed to be a suit for the recovery of a debt notwithstanding that other reliefs are prayed for in such suit and a decree shall be deemed to be a decree in respect of a debt notwithstanding that other reliefs are granted in such decree;
Provided that a suit for possession of land shall not be deemed to be suit for recovery of a debt by reason merely of mesne profits being also prayed for in such suit.
Provided further that nothing contained in this section shall apply to any portion of a decree other than relating to a debt.'
(2) Where a creditor files a suit for recovery of a debt during the period specified in sub-section (1) or after the agriculturist has paid or deposited into Court the sums and installments specified in sub-section (1) of section (1) of section 4 and during the period when he is so entitled to pay, the court shall in decreeing the suit direct the plaintiff to bear his own costs and pay the costs of the defendant who is on agriculturist;
Provided that nothing contained in this sub-section shall be a heat to the court passing any order to costs as between the plaintiff and other defendants who are not agriculturists.
NOTES
S.3: Stay of proceedings " Computation of period of limitation " cannot be excluded for such proceedings " 1966 Ker LJ. 541;
S.3(2) " "Paid meaning of " 72 L.W. 807;
S.3(2) " To avoid the benefits of the Act, by the agriculturist, there must be receipt of money by the creditor, the money in court deposit. If such deposit is made the debtor is entitled to protection under S.3(2). The word "pay" is not equivalent of "tender" " 2 L.W. 807.
S.3(i) " S.3(i) cannot be applied to proceedings under S.1 of Madras Act 14 of 1952, since that application is not a suit " (1957) 2 M.L.J. 108
4. PAYMENT OF DEBT INSTALLMENTS."(1) Notwithstanding any law, custom, contract, or decree of Court to the contrary, an agriculturists shall be entitled to pay within four months of the commencement of this Act the interest due on any debt due by him up to the commencement of this Act and one-eight of the principal outstanding or one-fourth of the total amount outstanding, whichever is less, and the balance of the debt in three equal annual installments on or before the 1st July of each of the succeeding three years with the interest due on such installments up to that date.
Explanation. " In the case of a decree, the amount decreed shall be deemed to be the principal.
(2) Where in respect of a decree for debt passed before the commencement of this Act, a debtor fails to make any one or the payments specified in sub-section (1) the decree holder shall be entitled to execute the decree in respect of the installment which is in default.
(3) In any suit filed after the commencement of this Act, the Court in decreeing the suit shall provide for the immediate payment of such installment or installments as would have become due 1 These words were substituted for the words "under provisions of" by Section 3 of and the Second Schedule to the Tamil Nadu repealing and Amending Act 1955 (Tamil Nadu Act XXXV of 1955. [under the provisions of] sub-section (1) and the balance in further installments a specified therein.
(4) where in any suit for the recovery of a debt pending at the commencement of this Act, the debtor claims to be an agriculturist, the Court shall, if the debtor is an agriculturist, pass a decree for immediate payment of such installment of installments as would have become payable under the provisions of sub-section (1) and the balance in further installments as specified therein.
(5) Nothing contained in this Act shall bar the Court from passing a decree or making an order in an application for execution of the decree under such terms and conditions as may be more favourable to the debtor than those provided for in this section either of its motion upon a consideration of all the circumstances of the case or upon an agreement between the parties.
(6) Where in any suit to recover a debt or in any application for the execution of a decree therefor the debt is payable by an agriculturists jointly or jointly and severally with a non-agriculturist, the court shall pass a decree or make an order for the payment of the debt found due from the agriculturist as provided in this section as against the agriculturist and make such provision in the decree or order against the non-agriculturist as the circumstances of the case may warrant.
(7) The provisions of sub-section (1) shall for purposes of execution, be deemed to be a subsequent order of court within the meaning of [clause (b) of sub-section (1) of section 48] of the Code of Civil Procedure, 1908 (Central Act X of 1908).
5. DEPOSIT OF DEBT INTO COURT (I) An Agriculturist may deposit any of the installments as provided in section 4 into the Court having jurisdiction to entertain a suit for recovery of the debt or into the Court which passed the decree, as the case may be, and apply to the Court to record part-satisfaction of the debt.
(2) Where any such application is made, the Court shall pass an order recording part-satisfaction of the debt if the amount deposited is the correct amount.
(3) The Court shall dismiss the application "
(a) if the applicant is not an agriculturist, or
(b) if the liability is not a debt, or
(c) if the amount deposited is insufficient and the applicant on being required by the Court to deposit the deficit amount within a time fixed by the Court, fails to do so.
(4) Any agriculturist entitled to make such deposit may, before the date on which any installment is due, apply to the Court having jurisdiction under sub-section (I) for an extension of time for making the deposit of the whole or any portion of such installment and the Court may, after notice to the creditor, extend the time for payment of such installment or part thereof for such period as it thinks fit.
(5) The procedure laid down in the Code of Civil Procedure, 1908 (Central Act V of 1908), for the trial of suits shall, as far as may be, apply to the applications under the section.
6. APPEALS. An appeal shall lie from an order passed by a Court under section 5, as if such an order relates to the execution, discharge or satisfaction of a decree within the meaning of section 47 of the Code of Civil Procedure, 1908 (Central Act V of 1908).
7. PRESUMPTION AS TO TRANSFER OF IMMOVABLE PROPERTY OF THE DEBTOR. (I) Every transfer of immovable property made by a debtor entitled to the benefits of this Act after the 1st October, 1953 and before the complete discharge of his debt, shall, in any suit or other proceeding with respect to such transfer, be presumed, until the contrary is proved, to have been made with intent to defeat or delay the creditors of the transferor.
(2) Where a debtor entitled to the benefits of this Act has allowed, in collusion with another, his immovable property to be sold after the 1st October, 1953 through Court with a view to defeated or delayed.
8. EXCLUSION OF TIME FOR LIMITATION. In computing the period of limitation for a suit for recovery of a debt or an application for the execution of a decree in respect of a debt, the time during which the institution of the suit or the making of the application was barred under section 3 shall be excluded.
9. EFFECT OF PAYMENT OR DEPOSIT UNDER SECTION 4 OR SECTION 5. Where a debt is payable by an agriculturist either by himself or jointly or jointly and severally with a non-agriculturist and where the agriculturist makes payment or deposits amount towards that debt as provided for in section 4 or section 5, a fresh period of limitation shall be computed from the time when the payment or deposit it was made both against the agriculturist and non-agriculturist.
10. POWER TO MAKE RULES. (I) The State Government may make rules for carrying out the purposes of this Act.
(2) The rules so made shall be placed on the table of each House of the Legislature as soon as they are published and shall be subject to such modification whether by way of repeal or amendment as the Legislature may make during the session in which they are so laid.
NOTES
S.4 " Provisions does not break up integrates of debt " Each payment gives independent cause of action ILR (1966) Mad. 18.
S.4 " In a suit for recovery of debt from agriculturists. Cause of action arising after enforcement of Tamil Nadu Act 5 of 1954, plaintiff is not entitled to add to the period of limitation the period provided by the Act, Act I of 1955 will serve the same " 77 Mad. L.W. 297.
S.4 " State Act making provision by prescribing limitation " Effect of Limitation Act " (1961) 1 M.L.J. 30;
S.4: Mortgage in contravention of S.6 " Validity of mortgage whether can be raised in execution proceedings " AIR 1963 Mad 450;
S.4 " Period during which proceedings in suit, which would include proceedings for passing final decree stands stayed under clause 4 of ordinance or 1953 or under S.4 of the Act of 1954 under Section 3 of the Act I of 1955, cannot be excluded in computing the period of limitation " 1966 Ker. L.J. 541;
S.4: Recovery of Debt " Limitation " (1959) 2 M.L.J. 41)
S.4(1) " Notwithstanding any law, custom, contract or decree of Court to the contrary" " Meaning and effect of " 74 Mad. L.W. 601: (1962) 2 M.L.J. 352.
S.4(1)(7) " Money decree of 15.3.41 against agriculturist Execution pending when Act I of 1955 came into force " Decree statutorily converted into installment decree " AIR 1963 Mad. 397.
S.4(1)(7) " Effect and scope of " (1962) 1 M.L.J. 10.
S.4(1)(2)(b): Installment decree " Period of limitation 81 L.W. 50
S.4(2) " Mortgage decree " Payment of installments " Whether splits up mortgage security " (1958) 2 M.L.J. 566
S.4 (4) deals with the mode of discharge of a claim found to be true and valid. It does not deal with the adjudication of the maintainability of the claim " (1957) 2 M.L.J. 287.
S.4(4) " Before decree benefits under the Act must be claimed (1957) 1 M.L.J. 200.
S.7 " Sale with agreement to recovery. It does not prevent third party to go to Act 1of 1955 obtain assignment " AIR 1962. Mad. 3.
S.7 " Presumption under S.7 " (1961) 1 M.L.J. 235;
S.8 " Scope of " AIR 1963 Mad 202. " AIR Mad. 278.
S.8 " Effect of acquisition of period under the Act " (1962) 2 M.L.J. 352.
Tamil Nadu State Acts


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