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The Tamil Nadu Indebted Persons (Tempoary Relief) Act, 1976 Complete Act - Bare Act

StateTamil Nadu Government
Year
Act Info:
THE TAMIL NADU INDEBTED PERSONS (TEMPOARY RELIEF) ACT, 1976


THE TAMIL NADU INDEBTED PERSONS


(TEMPORARY RELIEF) ACT, 1976.


NO.16 OF 1976.

Enacted by the President in the Twenty-seventh year of the Republic of India.

An Act to provide temporary relief to certain indebted persons in the State of Tamil Nadu.

In exercise of the powers conferred by section 3 of the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976, the President is pleased. To enact as follows:-


1. Short title, extent and commencement "

(1) This Act may be called the Tamil Nadu Indebted Persons (Temporary Relief) Act. 1976.

(2) It extends to the whole of the State of Tamil
Nadu.

(3) It shall be deemed to have come into force on the 15th day of January 1976.


2.Defiinitons "

In this Act, unless the context otherwise requires.

(1) "debt" means any liability in cash or kind, whether secured or unsecured, due from any indebted person whether payable under a decree or order of a civil or revenue court or otherwise, but does not include. "


NOTES

S.2 (1) " Does not apply to chit transaction " AIR 1977 NOC 60 (MAD)

(i) rent as defined in clause (5);

(ii) any debt to which the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976, is applicable.

(2) "indebted person" means any person from whom any debt is due;


NOTES

S.2 (1) & (2) " Scope of
- Power " Right to claim " 90 L.W. 572;

Provided that a person shall not be deemed to be an indebted person, if he "

(i) has in both the financial years ending on the 31st day of March, 1974 and the 31st day of March 1975, been assessed to income-tax under the Income-tax Act, 1961, or under the income-tax inforce in any foreign country , or

(ii) has in both the financial years ending on the 31st day of March 1974 and the 31st day of March, 1975, been assessed to sales tax under the Tamil Nadu General Sales Tax Act, 1959, or under the Central Sales Tax Act, 1956; or

(iii) has in all the four half-years immediately preceding the 1st April 1975 been assessed to property or house-tax in respect of building or lands other than agricultural lands, under the Tamil Nadu District Municipalities Act, 1920, the Madras City Municipal Corporation Act, 1919.the Madurai City Municipal Corporation Act, 1971, the Tamil Nadu Panchayats Act, 1958, the Cantonments Act, 1924, or
any law governing Municipal or local bodies in this State or in any other State or Union territory, provided that the aggregate annual rental value of such buildings and lands whether let out or in the occupation of the owner, is not less than two thousand and four hundred rupees.

Explanation ;- The annual rental value of any building or land for the purposes of clause (iii) of this proviso shall "

(1) where the assessment is based on the annual rental value, be deemed to be such value;

(2) where the assessment is based on the capital value, be deemed to be five percent of the capital value, and

(3) in any other case, be deemed to be the value ascertained in the prescribed manner;

Provided further that a person shall not be deemed to be an indebted person if he is an agriculturists as defined in the tamil Nadu Agriculturists Relief Act, 1938, and entitled to that benefits of the Act;

(3) "pay" with its grammatical variations, includes deliver;

(4) "person" means an individual and includes an undivided Hindu family, a marumakkattayam or aliyasantana tarward or tavazhi, but does not include a body corporate, a charitable or religious institution or an unincorporated company or association or any firm as defined in the Indian Partnership Act, 1932;

(5) "rent" means the rent payable by any tenant to the owner of any building in respect of such building or portion thereof occupied by such tenant.

Explanation " For the purposes of this Clause, the expression "building " shall have the same meaning as in clause (2) of section 2 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960;

(6)"suit" or "application" does not include an appeal from a decree or order passed in a suit or application or an application for revision or review.


3. Certain debts and liabilities not to be affected "

Nothing in this Act shall affect debts and liabilities of any indebted person falling under the following heads ;-

(a ) any revenue, tax or cess payable to the State Government or any other sum due to them by way of loan or otherwise ;

(b) any revenue, tax or cess payable to the Central Government or any other sum due it them by way of loan or otherwise;

(c ) any tax or cess payable to any local authority or any other sum due to it, by way of loan or otherwise;

(d) any liability in respect of any sum due to any co-operative society including a land development bank registered or deemed to be registered under the Tamil Nadu Co-operative Societies Act, 1961;

Provided that where the liability mentioned in this Clause arises by reason of an assignment to any such co-operative society either such assignment has taken place before the 15th day of March 1975 or is an assignment to any such co-operative society of a loan granted by another such co-operative society;

(e) any liability arising out of breach of trust;

(f) any liability in respect of maintenance whether under a decree of court or otherwise;

(g) any liability in respect of wages or remuneration due as salary or otherwise for services rendered;

(h) any liability in respect of any sum sue to "

(A) any public company as defined in the companies Act, 1956;

(B) any banking company to which the banking regulation act, 1949, applies ;

(C) the State bank of India constituted under the State Bank of India Act, 1955;

(D ) any subsidiary bank as defined in clause (k) of section 2 of the state bank of india (subsidiary banks) act, 1959;

(E) any corresponding new bank as defined in clause (d) of Section 2 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970;

(F) any company or corporation owned or controlled by the Central Government or any State Government;

(G) the committee for the Administration of the Amalgamated Tamil Nadu Shares of the Post War Services Reconstruction Fund and Special Fund or Reconstruction and Rehabilitation of EX-Servicemen;

(H) any other financial institution notified by the State Government in the Tamil Nadu Government Gazette.

[(i) any liability incurred or arising under any chit, the by laws of which have been registered under the Tamil Nadu Funds Act, 1961]

Added by Act 27 of 1976[ (j) any liability in respect of any sum due to any company which is declared to be a Nidhi or Mutual Benefit Society under Section (1) 620-A of the Companies Act, 1956].


NOTES

S.3; Bar of suit " Extent of 0 (1980) 2 MLJ 115;


4. Bar of suits and applications -

No suit for the recovery of a debt shall be instituted, and no application for the execution of a decree for payment of money passed in a suit for the recovery of a debt shall be made against any indebted person
in any civil or revenue court on and from the date of commencement of this Act and before the expiry or two years from the said date.

Explanation I " "suit" does not include a claim to a set-off made in a suit instituted by an indebted person.

Explanation II " A suit 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 for payment of money passed in such suit notwithstanding that reliefs are granted by such decree;

Provided that a suit for possession of land shall not be deemed to be a suit for recovery of a debt by reason merely of mesne profits being also prayed for in such suit.


5. Stay of proceedings "

(1) All further proceedings in suits and applications of the nature mentioned in section in section 4 in which relief is claimed against an indebted person, not being proceedings for the amendment of pleadings or to the addition, substitution, or the striking off of parties, but otherwise, inclusive of proceedings consequent on orders or decrees made in appeals, revision petitions, or applications for review, shall, subject to the next succeeding sub-section, stand stayed until the expiry of two years from the date of commencement of this Act;

Provided that in regard to property under attachment the court may pass such orders as it deems necessary to the
custody or preservation of the property or for the sale of such property if it is subject to speedy or natural decay, or in respect of it, the expenses of custody or preservation are considered excessive.

(2) On application made by the defendant or the respondent or by all the defendants or all the respondents , as the case may be, the stay effected by sub-section (1) in a suit or application shall be dissolved and the suit or application shall be proceeded with from the stage which had been reached when further proceeding in the suit or the application were stayed.


6. Exclusion of time for limitation . "

In computing the period of limitation or limit of time prescribed for a suit for the recovery of a debt or an application for the execution of a decree passed in such suit, the time during which the institution of the suit or the making of the application was barred by section 4, or during which the plaintiff, his predecessor " in title, believing in good faith that section 4 applied to such suit or such application , refrained from instituting the suit or making the application, shall be excluded.

Explanation " "Good Faith" shall have the meaning assigned to it in clause (22) of section 3 of the General Clauses Act, 1897.


7. Effect of transfer of immovable property by an indebted person "

Every transfer of immovable property by an indebted person entitled to the benefit of section 4 or section 5, made after the date of commencement of this Act and before the expiry of two year from the said date 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.


8. Act to override other laws, contracts, etc. "

The provision of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Code of Civil Procedure, 1908 or in any other law for the time being in force, or any custom, usage or contract, or decree or order of a court
or other authority.


9. Power to make rules "

(1) The state government may make rules to carry out the purposes of this Act.

(2) All rules made under this Act shall be published in the Tamil Nadu Government Gazette, and unless they are expressed to come into force on a particular day shall come into force on which they are so published.

(3) Every rule made under this Act shall, as soon as possible, after it is made, be placed on the table of both. Houses of the Legislature and if, before
the expiry; of the session in which it is so placed or the next session, both houses agree in making any modification in any such rule or both houses agree that the rule should not made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity or anything previously done under that rule.


10. Repeal and saving "

(1) The Tamil Nadu Indebted Persons (Temporary Relief) No.2 Ordinance, 1976, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provision of this Act.
Tamil Nadu State Acts


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