Act No. 5 of 1956 [1st June, 1956] An Act to provide for relief from
indebtedness to agriculturists and workmen. Whereas it is expedient to provide for relief
from indebtedness to agriculturists and workmen in the State of Bhopal; Be it enacted in the Sixth Year of the
Republic of India as follows :- CHAPTER I Preliminary (1)
This Act may be called the Bhopal Debt Redemption
Act, 1955. (2)
It extends to the whole of the State of Bhopal. (3)
It shall come into force on such day as the State
Government may, by notification in the Official Gazette, appoint in this
behalf. In this Act, unless the context otherwise
requires,- (1) "agricultural
produce" means the agricultural produce of an agriculturist raised by
him or by his servants or by labour hired by him and includes crops, whether
standing or gathered, and the fruit and flowers of trees, plants, vegetables
and grass. (2) "agriculturist" means
a holder or a joint holder and includes a muafidar but does not include a
mortgagee in possession : Provided that no holder shall be deemed to be
an agriculturist, if- (a) the revenue
or rent or the aggregate of revenue or rent, as the case may be, payable by him
exceeds rupees five hundred; or (b) he is a
Muafidar and the relinquishment of the land revenue to the extent of more than
rupees five hundred has been made in his favour; or (c) he is
assessed to Income-Tax under the Indian Income-tax Act, 1922 (XI of 1922): Provided further that no person shall be
deemed to be a holder merely by reason of his having acquired a holding,
otherwise than by inheritance or survivorship after the first day of June,
1955. Explanation. - Where a holder has a subsisting
interest in land but by reason of a temporary transfer does not for the time
being pay the land revenue payable in respect of that land, such revenue shall,
for the purposes of this sub-section, be deemed to be payable by him. (3) "bank" means
any company which transacts the business of banking in any State. Explanation. - Any company which is
engaged in the manufacture of goods or carries on any trade and which accepts
deposits of money from the public merely for the purpose of financing its
business as such manufacturer or trader shall not be deemed to transact the
business of banking within the meaning of this clause; (4) "co-operative
society" means a society registered or deemed to be registered under
the provisions of the Bhopal State Co-operative Societies Act, 1937 (Bhopal Act
No. XI of 1937); (5) "decree
to which thus Act applies" means a decree passed either before or
after the commencement of this Act in a suit to which this Act applies; (6) "holder" means
a person who has a right to hold a Khasra number and includes an occupant, a
Shikmi and Muafidar but does not include a mortgagee in possession; (7) "interest" means
the return to be made over and above what was actually advanced, whether the
same is charged or sought to be recovered specifically by way of interest in
cash or kind or usufruct or service to be rendered or otherwise; (8) "land" means
land used for agricultural purposes but does not include land occupied by
buildings or appurtenant thereto or land within the limits of any municipality
or notified area; (9) "loan" means
an advance in cash or kind made before the first day of June, 1955, recoverable
from an agriculturist or a workman or from any such person and other persons
jointly or from the property of an agriculturist or workman and includes any
transaction which in substance amounts to such advance, but does not include an
advance the liability for the repayment of which has, by a contract with the
borrower or his heir or successor or by sale in execution of a decree, been
transferred to another person or an advance made by the State Government or by
a Co-operative Society or by a Scheduled Bank : Provided that an advance recoverable from an
agriculturist or from an agriculturist and other persons jointly shall not be
deemed to be a loan for the purposes of this Act unless such advance was made
to an agriculturist or to an agriculturist and other persons jointly; (10) "prescribed" means
prescribed by this Act or by rules made thereunder; (11) "principal" means
the amount originally advanced; (12) "rent" has
the same meaning as in the Bhopal State Land Revenue Act, 1932 (Bhopal Act No.
IV of 1932) but when rent is paid in kind or service, it shall, for the purpose
of this Act, mean the money value thereof; (13) "Scheduled
bank" means any bank included at the commencement of this Act in the
Second Schedule to the Reserve Bank of India Act, 1934 (II of 1934); (14) "secured
loan" means a loan the repayment of which has been secured by a
mortgage of, or charge on specific property, or by a pledge; [1][(15) x x x] (16) "suit
to which this Act applies" means any suit or proceeding relating to a
loan; (17) "Tribunal" means
a Tribunal appointed under Section 5 of this Act; (18) "unsecured
loan" means a loan which is not a secured loan; (19) "workman" means
a person who is not a holder and- (a) who earned
wages within the meaning of clause (vi) of Section 2 of the Payment of Wages
Act, 1936, (IV of 1936), during the period of twelve months immediately
preceding the first day of June, 1955 such wages not exceeding- (i) in the
aggregate during the said period of twelve months, six hundred rupees; (ii) in any one
month comprised in the said period of the twelve months, sixty rupees; or (b) who does not
ordinarily resides within the limits of a municipality of notified area and who
belongs to any of the classes specified in the Schedule or notified thereunder; (20) All
other words and expressions used herein but not defined, and defined in the
Bhopal State Land Revenue Act, 1932 (Bhopal Act No. IV of 1932) shall have the
meanings respectively assigned to them in that Act. For the purpose of this Act- (a) in any
proceeding relating to an advance, pending at the commencement of this Act or
instituted after such commencement, the status of the debtor who is a party to
such proceeding shall be deemed to be the status which he had, at the
commencement of the Act, or on the date of the institution of the proceeding,
as the case may be; (b) revenue or
rent which has been remitted or suspended either in whole or in part, on
account of a failure of the crop shall be deemed to be payable in the year in
which it was so remitted or suspended. (c) a joint
holder shall be deemed to be holder of so much of the joint holding not being
the holding of a joint Hindu family, as appertains to his share; (d) where the
land revenue or rent or the aggregate of the land revenue or rent, as the case
may be, payable by a joint Hindu family, or the land revenue relinquished in
favour of its karta- (i) does not
exceed five hundred rupees, such family and every member of it shall be deemed
to be an agriculturist. (ii) exceeds five
hundred rupees, a member of such family shall be deemed to be an agriculturist
only if the land revenue or rent or the aggregate of the land revenue or rent
payable or relinquished, as the case may be, in respect of his share in the
joint family holding or holdings does not exceed five hundred rupees : Provided if a member of a joint Hindu family
is getting gazara only, such gazara shall be treated as his share : Provided further that no joint Hindu family
or any member of it shall be deemed to be an agriculturist if such family or
member assessed to income-tax; (e) a loan shall
not be deemed to be due jointly from an agriculturist or workman and another
person if such other person's liability in connection with such loan is that of
a surety and such person and such agriculturist or workman shall not be deemed
to be joint debtors. (1)
The provisions of this Act shall not apply to a
suit for the recovery of a loan from an agriculturist where the creditor
declares in accordance with the provisions of sub-section (2) that if a decree
is passed in his favour either for the whole or part of the claim such decree
shall not be executed against the land, agricultural produce or person of such
agriculturist. (2)
The declaration mentioned in sub-section (1) shall,
in the case of a suit pending at the commencement of this Act, be made at any
time before the decision of the suit and in the case of a suit instituted after
the commencement of this Act, in the plaint. (3)
No decree passed against an agriculturist shall be
amended under the provisions of this Act if the creditor declares that such
decree shall not be executed against the land, agricultural produce or person
of such agriculturist: Provided that no such declaration shall be made
in a suit or proceeding relating to a loan recoverable from an agriculturist
who also belong to one of the classes specified in sub-clause (a) or sub-clause
(b) of sub-section (19) of Section 2; Provided further that where in a suit decided
after the commencement of this Act the creditor has had an opportunity of
making the declaration required by sub-section (1) no declaration shall, in
proceedings for the execution of a decree obtained by the creditor in such suit
be made by the decree- holder under sub-section (3): Provided also that no declaration shall be
made under sub-section (3) where the creditor has already applied for execution
against the land, agricultural produce or person of such agriculturist. (4)
Where a declaration has been made under the provisions
of this section no order shall be made for the execution of the decree against
the land, agricultural produce or person of the agriculturist in respect of
whom the declaration was made or his heir or successor-in-interest, and the
court shall record a direction to this effect in the decree. CHAPTER II Appointment and Abolition of Tribunal (1)
The State Government shall, by notification in
the Official Gazette, constitute such number of Tribunals as it may think
necessary for trying all suits under this Act and shall define the local limits
of their respective jurisdiction. (2)
A Tribunal shall consist of such number of members
as the State Government may think fit to appoint and where a Tribunal consists
of two or more members, one of them shall be appointed as the Chairman thereof. (3)
A Tribunal, where it consists of two or more
members, may act notwithstanding the temporary absence for any reason of the
Chairman or any other member, and when the Chairman or other member rejoins his
office after such absence the proceedings may be continued before the Tribunal
from the stage at which he rejoins. (4)
No order of the State Government appointing any
person as a member of a Tribunal shall be called in question in any manner. The State Government may, at any time, by a
notification in the Official Gazette, abolish a Tribunal constituted under
Section 5. If, for any reason, a vacancy occurs in the
office of the Chairman or any other member of a Tribunal the State Government
shall, in the case of Chairman, and may, in the case of any other member,
appoint another person, in accordance with the provisions of the preceding
section to fill the vacancy and the proceeding may be continued before the
Tribunal so reconstituted from the stage at which the vacancy is filled. (1)
If two or more members of a Tribunal differ as to a
question of law or usage having the force of law or in construing a document
the construction of which may affect the merits of the case, they shall draw up
and refer, for the decision of the Judicial Commissioner a statement of the
facts of case and of the point on which they differ in opinion and the
provisions of Order XLVI in the First Schedule of the Code of Civil Procedure,
1908 (V of 1908) shall apply to the reference. (2)
If the members differ on any matter other than that
specified in sub-section (1), the opinion of the majority shall prevail, and
where there is no such majority, the decision of the Chairman shall prevail. The Tribunal, in regard to the proceedings
under this Act shall have the same powers as it would have if it were Court of
original civil jurisdiction and shall follow the procedure under the Code of
Civil Procedure, 1908 (V of 1908) for the Courts constituted under the
Provincial Small Cause Courts Act, 1887 (IX of 1887). CHAPTER III Suits and Decrees on Loans Where causes of action in respect of a loan
and in respect of an advance in cash or kind made on or after the first day of
June, 1955 have been joined in one suit, the Tribunal shall order separate
trials in respect of the claim based on such loan and in respect of that based
on such advance. Notwithstanding anything contained in any
other enactment for the time being in force every suit to which this Act
applies shall be instituted in the Tribunal within the local limits of the
jurisdiction of which- (a) the
defendant or, if there are more than one, any of the defendants, ordinarily
resides; or (b) in case the
defendant or, if there are more than one, all the defendants reside without the
territory of the State of Bhopal- (i) the holding
or the land of the defendant or, if there are more than one, any of the
defendants, is situated; or (ii) the
defendant or, if there are more than one, any of the defendants, being a
workman, carries on his trade or profession. Notwithstanding anything contained in any law
for the time being in force or the terms of any contract regarding the date or
dates on which a loan shall become due, a suit to which this Act applies for
the redemption of a mortgage or for accounts may be instituted by a debtor at
any time after the commencement of this Act. (1)
Notwithstanding the provisions of any decree or of
any law for the time being in force, an agriculturist or a workman liable to
pay the amount due under a decree to which this Act applies passed before the
commencement of this Act, may apply to the Tribunal having jurisdiction for the
amendment of the decree by reduction according to the provision of this Act of
the amount due under it and on receipt of such application the Tribunal shall,
after notice to the opposite party, calculate the amount due from the applicant
in accordance with the provisions of Sections 14 and 15, and shall amend the
decree accordingly : Provided that if the decree was passed by a
court outside the State of Bhopal, it shall not be executed against the land or
agricultural produce or person of the judgement-debtor unless the decree-holder
agrees to an amendment of the decree in accordance with the provisions of this
Act. (2)
A decree amended under the provisions of
sub-section (1) shall be deemed to bear the date of the original decree. (3)
In amending a decree under the provisions of this
section the Tribunal shall accept the findings on which the decree was based
except in so far as they are inconsistent with the provisions of Section 14. (1)
In a suit to which this Act applies or in amending
a decree under the provisions of Section 13, the Tribunal shall,
notwithstanding anything contrary in any law, decree or contract or in any
agreement purporting to close past transaction, determine the principal and
take into account all sums paid by or on behalf of the debtor and in the case
of a mortgage with possession the net profits realised by the mortgagee or
which, with the exercise of ordinary diligence, might have been realised by
him, and shall determine the amount, if any, due by the debtor in accordance
with the provisions of the following sub-section : Provided that for the purpose of determining
the principal, the Tribunal shall treat as principal any accumulated interest
which has been converted into principal at any statement or settlement of
account or by any contract in the course of the transaction made before the
first day of January, 1926, but shall treat as interest any accumulated
interest which has been converted as aforesaid at any such statement,
settlement or contract made on or after that date. (2)
The amount due by the debtor shall not exceed the
amount that would have been due if the rate of interest had been in the case of
a secured loan, four and a half per cent per annum simple interest and in the
case of an unsecured loan, six per cent per annum simple interest: Provided that the provisions of this
sub-section shall not apply to loans for seed advanced in kind according to the
sawain system under which such loans are repaid in kind with the addition of 25
per cent to the quantity of seed advanced. (3)
The amount due by the debtor as interest shall not
exceed the amount of the principal outstanding on the date on which the amount
due by the debtor is determined and all payments by a debtor over and above the
interest so calculated shall be deemed as payments towards the principal. (4)
Nothing in this section shall entitle the debtor to
a refund of any sum already paid by him. (1)
Notwithstanding anything contained in Section 34 of
the Code of Civil Procedure, 1908 (V of 1908) the Tribunal shall not order
future interest on the aggregate sum adjudged in a decree to which this Act
applies or in a decree amended under the provisions of this Act, at a rate
exceeding three per cent per annum simple interest. (2)
If in a decree to be amended under the provisions
of this Act a higher rate of future interest has been allowed by the court
passing the decree such rate shall, with effect from the date of the decree, be
reduced to a rate permitted by the provisions of sub-section (1) and the decree
shall be amended accordingly. (3)
When a decree is executed by the grant of a
mortgage under the first proviso to Section 24, then notwithstanding a
different rate in the decree, the rate of interest shall from the date when
such mortgage is granted be deemed to be three per cent per annum simple
interest. When the amount due has been determined under
Sections 14 and 15, the Tribunal may fix instalments for the repayment of the
debt in such manner as may be prescribed and may in case of default order
payment of simple interest at a rale not exceeding six per cent, if the debt is
unsecured and four and a half per cent, if it is secured : Provided that in fixing instalments the
Tribunal shall have regard to the extent of the transferable property of the
debtor and his paying capacity to be determined by rules made by the State
Government in this behalf. (1)
Every instalment fixed under Section 16 shall be
payable on or before the date fixed by the order of the Tribunal, and this may,
at the opinion of the debtor, be paid either to the Collector of the district
in which he resides, or to the creditor who shall pass a receipt therefor in
such form as may be prescribed. (2)
When the land revenue or rent, as the case may be,
due by debtor is suspended or remitted, in whole or part, the instalment shall
be suspended and shall become payable one year after the last of the remaining
instalments. No interest shall be charged on such suspended instalment. In any proceeding relating to a loan due
jointly from several persons, any of whom is an agriculturist or a workman, the
Tribunal shall apportion the loan between the joint debtors and the provisions
of this Act shall apply only to that part of the loan which is apportioned to
the joint debtor who is an agriculturist or a workman. Nothing in this Act shall prevent the
institution of a suit for the recovery of a loan against a surety jointly with
the debtor or separately, as the case may be, but no decree shall be passed in
such suit against a surety for an amount in excess of that for which a decree
would have been passed against the agriculturist or workman from whom the loan
is recoverable. CHAPTER IV Execution of Decrees The provisions of this chapter shall not
apply to the execution of a decree based on a loan advanced by a bank. Notwithstanding anything in the Code of Civil
Procedure, 1908 (V of 1908), not more than one-third of the agricultural
produce of a judgement-debtor shall be liable to attachment in execution of any
decree to which this Act applies. (1)
Notwithstanding anything in the Code of Civil
Procedure, 1908 (V of 1908), no order shall be made for the execution of decree
to which this Act applies against the agricultural produce of a
judgement-debtor after the expiration of six years in the case of such decrees
passed before the commencement of this Act, from the date of such commencement,
and in the case of such decrees passed after the commencement of this Act, from
the date of decree, or where the decree directs any payment of money to be made
at a certain date or at recurring intervals, from the date of default in making
the payment in respect of which the decree-holder seeks to execute the decree. (2)
Nothing in this section shall be deemed to extend
the period of limitation for an application for the execution of a decree. (1)
Notwithstanding anything in the Code of Civil
Procedure, 1908 (V of 1908), when the land of an agriculturist is sought to be
sold in execution of decree to which this Act applies the Tribunal executing
the decree shall proceed in accordance with the provisions of the following
sub-section : Provided that if any time before such land is
transferred in accordance with the provisions of this section, such
agriculturist applies in writing to the Tribunal executing the decree slating
that he desires to have the land put to sale, the Tribunal shall sell it in
accordance with the provisions of the Code of Civil Procedure, 1908 (IV of
1908). (2)
In the case of any decree to which this Act applies
the Tribunal shall calculate the value of such land by multiplying the annual
land revenue payable by or relinquished in favour of such agriculturist in
respect of such land, as the case may be, by the prescribed multiple. (3)
If the value so determined is less than or equal to
the amount of such decree together with the proportionate amount of any prior
encumbrance, the Tribunal shall transfer such land to the decree-holder on
condition that the decree-holder shall discharge the debts due to all persons
claiming under a prior encumbrance: Provided that all such claims shall be discharged
in proportion to the ratio of the value of the land to be transferred bears to
the decretal amount and the proportionate amount due on prior encumbrances
payable by the debtor. (4)
If the value so determined is greater than the
amount of such decree together with the proportionate amount of prior
encumbrance, the Tribunal shall determine the portion of such land the value of
which, determined in accordance with the provisions of sub-section (2), is
equal to the amount of the decree together with the proportionate amount of
such prior encumbrance and shall transfer such portion of land to the
decree-holder and order the decree-holder to pay to the persons claiming under
such encumbrance the proportionate amount of such encumbrance. (5)
When land is transferred under the provisions of
this section the decree shall be deemed to be satisfied up to the value of such
land as determined under the provisions of this section and all the rights of
the agriculturist in such land shall be deemed to have been sold to the
decree-holder. (1)
Notwithstanding anything contained in this Act or
in any other law for the time being in force- (a) the land of
an agriculturist the land revenue or rent payable by whom or relinquished in
whose favour does not exceed fifty rupees per annum, shall not be sold or
otherwise transferred in execution of a decree to which this Act applies nor
shall a final decree for foreclosure be passed in respect of such land, and (b) in the case of
any other agriculturist- (i) only so much
of his land may be sold or otherwise transferred in execution of a decree to
which this Act applies; or (ii) a final
decree for foreclosure may be passed in respect of only so much of his land, as
would, after such sale or transfer or foreclosure leave with him land the
revenue or rent payable or relinquished in respect of which would be at least
rupees fifty per annum : Provided that the Tribunal may execute a
decree to which this Act applies by granting to the decree-holder a
self-liquidating usufructuary mortgage, for a period of not more than twenty
years, of such land as is protected from sale, transfer or foreclosure by the
provisions of this section: Provided further that when a mortgage has
been granted under the provisions of this section the same land shall not be
mortgaged in execution of any other decree to which this Act applies against
the same debtor or his heir or successor-in-interest if the term of the
mortgage together with the term or terms of the previous mortgage or mortgages
exceed twenty years. (2)
The form, terms and conditions of mortgage granted
under the first proviso to sub-section (1) and the amount to be paid by the
debtor at any time for the redemption of such mortgage shall be such as may be
prescribed. Where several persons holding decree to which
this Act applies move the Tribunal, before it has granted a mortgage under
Section 24, for execution of their decrees by grant of a mortgage of land
protected under that section, the Tribunal shall, subject to the provisions of
that section, observe the following principles in executing the decrees- (a) If any such
decree is based on a loan the payment of which is already secured by a mortgage
of the whole or part of the land so protected (hereinafter described as a
secured decree), the holder of such decree shall first be granted a mortgage of
the protected land already mortgaged to him and the holder of a decree based on
an unsecured loan (hereinafter described an unsecured decree) shall be granted
a mortgage of the remaining protected land, if any. (b) Where there
are more than one secured decree and also unsecured decrees- (i) and
different portions of the protected land are mortgaged in the secured decrees,
the holder of each such decree shall be granted a mortgage of the portion which
is already mortgaged to him; (ii) and the same
protected land is mortgaged in more than one decree, mortgages shall be granted
to the holders of such decrees in order of their priority. (iii) and if after
the grant of mortgages under sub-clauses (i) and (ii) there remains any
protected land free from such mortgages, the holders of the unsecured decree
shall be granted mortgages thereof. (c) As among
persons holding unsecured decrees, such persons shall each be granted
simultaneously mortgages of rateable shares of the land in such manner as may
be prescribed. (1)
When a land is transferred in accordance with the
provisions of Section 23 such transfer shall tor the purposes of Section 89 of
the Indian Registration Act, 1908 (XVI of 1908) be deemed to be a sale of
immovable property. The Tribunal shall grant a certificate of transfer for
which the decree holder shall pay stamp duty accordingly to the valuation of
the land so transferred. (2)
When a decree is executed by the grant of a
mortgage under the provisions of the first proviso to sub-section (1) of
Section 24, the Tribunal shall grant a certificate of mortgage with such
particulars as may be prescribed and shall follow the procedure laid down in
sub-section (2) of Section 89 of the Indian Registration Act, 1908 (XVI of
1908) as if such certificate was a certificate of sale of immovable property
and the registering officer shall file the copy of the certificate in the
Register concerned. Such certificate of mortgage shall be exempted from stamp
duty. Notwithstanding anything contained in rule 6
or rule 8-A of Order XXXIV of the First Schedule of the Code of Civil
Procedure, 1908 (V of 1908), where in a suit based on a loan secured by a first
mortgage a decree for sale has been executed and the net proceeds of the sale
of the mortgaged property are found insufficient to pay the amount due to the
plaintiff or to the defendant, as the case may be, no decree shall be passed
for the balance due to such plaintiff or defendant, as the case may be, and if
any decree for such balance has been passed before the commencement of this Act
it shall be deemed to have been satisfied. No decree to which this Act applies shall be
executed by the transfer of trees belonging to an agriculturist unless the land
on which tree stand is also transferred. No decree to which this Act applies shall be
executed by the arrest and detention of the judgement-debtor unless the
Tribunal is satisfied that such debtor has alienated or removed or concealed
any of his property with the intention to defeat or delay the execution of such
decree. CHAPTER V Maintenance of Accounts (1)
Where any person advances a loan to an
agriculturist or a workman after the commencement of this Act, he shall- (a) if the
debtor ordinarily resides within the jurisdiction of a Gaon Sabha, established
under the Bhopal Panchayat Raj Act, 1952 (Bhopal Act No. II of 1953), execute
the agreement for the advance of a loan and make the payment in the presence of
an educated or literate person a Pradhan or Up-Pradhan or a member of a Gaon
Panchayat elected under Section 2 of the Bhopal State Pancyahat Raj Act, 1952
(Act No. II of 1953), whose signature or thumb impression shall be obtained on
the said agreement as one of the witnesses; (b) regularly
record and maintain a correct account for each agriculturist or workman debtor
of all transactions relating to each loan advanced to that debtor, in such
manner as the State Government may prescribe; and (c) supply each
agriculturist or workman debtor every year with a full and correct statement of
account signed by the creditor or his agent of any balance of amount that may
be outstanding against such debtor on account of each separate loan on such
date as the State Government may prescribe in this behalf. Such statement of
account shall include all transactions entered into during the year to which
the statement relates and shall contain such details and particulars as the
State Government may prescribe. It shall be supplied to the debtor within one
month of the aforesaid date in such form and in such manner as the State
Government may prescribe : Provided that where there is a current
account, it shall be sufficient for the creditor for the purposes of clause (b)
to keep one account of all transactions relating thereto and for the purposes
of clause (c) to furnish particulars of the balance due on the whole account. (2)
A person to whom a statement of account has been
submitted under sub-section (1) shall not be bound to acknowledge or deny its
correctness, and his failure to object shall not by itself, be deemed to be an
admission of the correctness of the account. (3)
The account prescribed under clause (b) of
sub-section (1) shall be deemed to be regularly kept in the course of business
for the purposes of Section 34 of the Indian Evidence Act, 1872 (I of 1872),
and copies of entries in such account certified in such manner as may be
prescribed shall be admissible in evidence for any purpose in the same manner
and to the same extent as the original entries. Notwithstanding anything contained in any
other enactment for the time being in force- (a) in any suit
or proceeding relating to a loan against an agriculturist or a workman if the
debtor objects that the creditor has not complied with the provisions of
Section 30 the Tribunal shall determine such objection before deciding the
claim on the merits; (b) if the
Tribunal finds that the provisions of the clause (b) of sub-section (1) of
Section 30 have not been complied with by the creditor, it may, if the
creditor's claim is established in whole or in part, disallow the whole or a
portion of the interest found due, as it may deem reasonable in the
circumstances of the case, and shall refuse to allow costs to the creditor; (c) if the
Tribunal finds that the provisions of clause (c) of sub-section (1) of Section
30 have not been complied with by the creditor the Tribunal shall in computing
the amount of interest due upon the loan exclude every period for which the
creditor has failed to comply with the said provision : Provided that if the creditor has, after the
time prescribed in the said clause, furnished the account and satisfied the
Tribunal that he had sufficient cause for not furnishing it earlier, the
Tribunal shall, notwithstanding such omission, include any such period or
periods for the purpose of computing the interest: Provided further that if the creditor has
submitted an account which is not full and correct and satisfied the Tribunal
that the omission or error was bona fide and due to inadvertence the
Tribunal shall, notwithstanding such omission or error, include any such period
or periods for the purpose of computing the interest. Explanation. - A person who has kept his
account and submitted his yearly statement of account in the form and manner
prescribed in clauses (b) and (c) of sub-section (1) of Section 30 shall be
held to have complied with the provisions of these clauses notwithstanding any
errors or omissions, if the Tribunal find that the errors and omissions were
accidental and not material and that the accounts have been kept in good faith
with the intention of complying with the provisions of the said clauses. (1)
Any creditor who, after the commencement of this
Act, records in his book of accounts or in the statement of account submitted
to the debtor as lent, to an agriculturist or a workman a sum larger than that
actually lent, whether by way of charges for expenses, inquiries, fines,
bonuses, premia, renewals or otherwise, shall be punished for the first offence
with fine which may extend to one hundred rupees, and for a second or subsequent
offence with regard to the same or any other agriculturist or workman, with
fine which may extend to five hundred rupees. (2)
Where in any suit concerning a loan taken by an
agriculturist or a workman the Tribunal finds that the creditor has without reasonable
cause refused or neglected to deliver to the debtor a receipt for any payment
by him on account of such loan or to credit such payment on the written
instrument securing such loan, it may award the debtor such compensation not
exceeding double the amount of such payment as it may consider proper. The provisions of Sections 30, 31 and 32
shall not, in the case of a loan advanced before the commencement of this Act,
apply to the period prior to the commencement of this Act. CHAPTER VI Revision Save as provided by this Act, a decree passed
or an order made by a Tribunal under the provisions o the Act shall be final
and shall not be called in question in any civil court. The Judicial Commissioner may, either on his
own motion or on an application from any party interested in any decree passed
or order made by the Tribunal in any case call for and examine the records of
any case and pass such order with respect thereto as he thinks fit : Provided that no order prejudicial to any
person shall be made under this section unless such person has been given a
reasonable opportunity of being CHAPTER VII Miscellaneous (1)
Notwithstanding anything in the Bhopal State
Panchayat Raj Act, 1952 (Act No. II of 1953) no suit to which this Act applies
shall be instituted a Nyaya Panchayat established under the provisions of that
Act and if at the commencement of this Act any such suit is pending before a
Nyaya Pancyahat so established it shall forthwith be transferred to the
Tribunal which, but for such Nyaya Panchayat, would have jurisdiction. (2)
The provisions of Section 13 shall apply to decrees
passed before the commencement of this Act by a Nyaya Panchayat so established. The Tribunal shall use a seal of such form
and dimension as are prescribed by the State Government. Every Tribunal constituted under this Act
shall be deemed to be a civil court for the purposes of Secs. 480 and 482 of
the [2][Code of Criminal
Procedure, 1898 (Act No. V of 1898)]. (1)
The State Government, may, by notification in
the Official Gazette, make rules for carrying out provisions of this Act. (2)
In particular and without prejudice to the
generality of the foregoing power, such rules may provide for- (a) the form in
which the declaration under sub-section (1) of Section 4 may be made; (b) the form and
contents of an application for amending a decree of the court under Section 13; (c) the
principles for determining net profits realised by the mortgagee under Section
14(1); (d) determining
the transferable property of the debtor and his paying capacity for purposes of
fixing instalments under Section 16; (e) the form of
receipt referred to in sub-section (1) of Section 17; (f) the multiple
referred to in sub-section (2) of Section 23 for determining the value of land; (g) the terms
and conditions on which and the form in which self-liquidating usufructuary
mortgages may be granted under the provisos to sub-section (1) of Section 24
and the principles for the determination of the amount required to be paid by
the debtor for redemption of such mortgage before the expiry of the period of
mortgage; (h) the
determination of rateable shares of the land for the grant of simultaneous
mortgages to holders of unsecured decrees as required in clause (c) of Section
25; (i) the forms of
certificates of transfer and mortgage referred to in Section 26; (j) the manner
in which an account of the loan advanced to an agriculturist or a workman is to
be maintained by the creditor; (k) the form in
which and the date on which the creditor is required to supply the statement of
account under clause (c) of sub-section (1) of Section 30; (l) the manner
in which the copies of entries of accounts may be certified for purposes of
admitting in evidence; (m) the
specification of the seal of a Tribunal; and (n) any other
matter not specifically provided herein and for which such rules may be
considered necessary. (1)
The Bhopal Debt Conciliation Act, 1940 (No. VIII of
1940) is hereby repealed. (2)
Any proceeding pending at the commencement of this
Act before a Debt Conciliation Board constituted under the repealed Act shall
not continue but shall on such commencement be deemed to have abated. The Schedule [See sub-section
(19) of Section 2] Agricultural labourers, bangle-makers,
barbers, basket-makers, black-smiths, boatmen, carders, carpenters,
copper-smiths, cowherdsmen, dairymen, fishermen, general labourers,
goat-herdsmen, hunters, leather workers, masons, midwives, potters, scavengers,
stone-cutters, tailors, tanners, washermen, watchmen, water-carriers, weavers,
or other servants of the village community, or any similar class of persons
which the State Government may, by notification in the Official Gazette, from
time to time, include in this Schedule.Bhopal Debt
Redemption Act, 1955