[M.P. Act
No. 1 of 1988] [18th December, 1987] Received
the assent of the President on 18-12-1987; assent first published in the Madhya
Pradesh Gazette (Extraordinary), dated 2-1-1988. An Act to
provide for the speedy recovery of certain classes of dues payable to the State
Government, Government Companies and certain categories of Corporations and
Banking Companies, and for matters connected therewith. Be it
enacted by the Madhya Pradesh Legislature in the Thirty-eighth Year of the
Republic of India as follows :- (1)
This Act may be called the
Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987. (2)
It extends to the whole of
Madhya Pradesh. (3)
It shall come into force at
once. In this
Act, unless the context otherwise requires- (a)
"Agriculture" shall have the meaning assigned to it in clause (a) of
Section 2 of the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandh
(Bank) Adhiniyam, 1972 (No. 32 of 1973); (b)
"Banking
Company" means :- (i)
a banking company as defined in
the Banking Regulation Act, 1949 (No. 10 of 1949); (ii)
the State Bank of India
constituted under the State Bank of India Act, 1955 (No. 23 of 1955); (iii)
a subsidiary bank as defined in
the State Bank of India (Subsidiary Banks) Act, 1959 (No. 38 of 1959); (iv)
a corresponding new Bank
constituted under Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (No. 5 of 1970) or the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (No. 40 of 1980); (v)
a Regional Rural Bank established
under the Regional Rural Banks Act, 1976 (No. 21 of 1976); and (vi)
a financing bank or a Central
Society as defined in the Madhya Pradesh Co-operative Societies Act, 1960 (No.
17 of 1961) excluding a Co-operative Land Development Bank; (c)
"Corporation" means the Madhya Pradesh Financial Corporation established
under the State Financial Corporation Act, 1951 (No. 63 of 1951) and includes
any other Corporation owned or controlled by the Central Government or the
State Government which is declared by the State Government, by notification, to
be a Corporation for the purpose of this Act; (d)
"financial
assistance" means any kind of financial
assistance given :- (i)
for establishing, expanding,
modernizing, renovating or running any industrial concern; or (ii)
for the purpose of vocational
training; or (iii)
for the development of
agriculture or agro industry; or (iv)
for the purpose of carrying out
any State sponsored scheme or socially desirable scheme; or (v)
for relief against distress; or (vi)
for purposes of any other kind of
planned development. (e) "Government
Company" means Government company as defined in Section 617 of the
Companies Act, 1956 (No. 1 of 1956); (f) "industrial
concern" shall have the meaning assigned to the expression in the
State Financial Corporation Act, 1951 (No. 63 of 1951), as amended from time to
time; (g) "person" includes an
heir, a legal representative, an assignee or a guarantor; (h)
"State
sponsored scheme" means a scheme sponsored by way of financial
assistance by the State Government under which the State
Government either :- (i) ???advances money to a
banking company or Government company for the purposes of disbursing loans,
advances or grants or for the purposes of sale of goods on credit or
hire-purchase; or (ii) ???guarantees or agrees
to guarantee the repayment of a loan, advance or grant or the payment of the
price of goods sold on credit or hire purchase; (i)
"socially
desirable scheme" means a scheme notified as
such by the State Government under which a banking company advances money to
any person by way of loan. (1)
Where any person is a party
:- (A)
to any agreement relating to a
loan, advance or grant given to him or relating to payment of price of goods
sold to him on credit or relating to hire-purchase of goods sold to him by the
State Government or a Corporation by way of financial assistance; or (B)
to any agreement relating to loan
advance or grant given to him or relating to payment of price of goods sold to
him on credit or relating to hire-purchase of goods sold to him by a banking
company or a Government Company under a State sponsored scheme or as the case
may be, under a socially desirable scheme; or (C)
to any agreement relating to a
guarantee given by the State Government or a Corporation in respect of a loan
raised by an industrial concern; or (D)
to any agreement providing that
any money payable thereunder to the State Government shall be recoverable as
arrears of land revenue and such person,- (i) ???makes any default in
repayment of the loan or advance or any instalment thereof; or (ii) ???having become liable
under the conditions of the grant to refund the grant or any portion thereof
makes any default in the refund of such grant or portion or any instalment
thereof; or (iii) ??otherwise; fails to
comply with the terms of the agreement then- (a)
in the case of the State
Government such Officer as the State Government may, by notification, authorise
in this behalf; (b)
in the case of a Corporation or a
Government Company, the Managing Director thereof by whatever name called; and (c)
in the case of banking company,
the local agent thereof by whatever name called, may
send a certificate in such form as may be prescribed, and consistent with the
provisions of sub-section (2) of Section 4, to the Collector of the district in
which such person normally resides or carries on business or owns property, or
to such other subordinate officer of the Collector, as the State Government or
the Collector may, by an order, specify in this behalf, mentioning the sum due
from such person and requesting that such sum together with the cost of
proceedings and interest on the sum due at the rate specified in the agreement,
upto the date of recovery, be recovered as if it were an arrear of land revenue
: Provided
that a certificate issued under this sub-section may be withdrawn by the
authority issuing such certificate at any time : Provided
further that the cost of proceedings shall always be calculated at the rate of
three percent, of the principal sum to be recovered. (2)
The Collector or his
subordinate officer specified under sub-section (1) on receiving the
certificate shall take steps to recover the amount stated therein as arrear of
land revenue under the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959). (3)
No suit for the recovery of
any sum due as aforesaid shall lie in a Civil Court against any person in
respect of whom a certificate for recovery of such sum has been issued under
sub-section (1) : Provided
that in computing the period of limitation for institution of suit for the
recovery of any such sum, the period during which the recovery is barred under
this section shall be excluded. (4)
In the case of any agreement
referred to in sub-section (1) between any person referred to in that
sub-section and the State Government or a Corporation, no arbitration
proceedings shall lie at the instance of either party either for recovery of
any sum claimed to be due under the said sub-section or for disputing the
correctness of such claim : Provided
that whenever proceedings are taken against any person for the recovery of such
sum he may pay the amount claimed under protest to the officer taking such
proceedings, and upon such payment the proceedings shall be stayed and the
person against whom such proceedings were taken may make a reference under
arbitration agreement or otherwise enforce an arbitration agreement in respect
of the amount so paid. (5)
Save as otherwise expressly
provided in the first proviso to sub-section (1) and the proviso to sub-section
(4), every certificate issued under sub-section (1) shall be final and shall
not be called in question in any original suit, application (including any application
under the Arbitration Act, 1940) or in any reference to arbitration and no
injunction shall be granted by any Court or other authority in respect of any
action taken or intended to be taken in pursuance of any power conferred by or
under this Act. (6)
Any amount recovered under
this Act shall, notwithstanding anything contained in any other law for the
time being in force, be applied in the following manner, namely :- (a)
firstly, towards the cost of
proceedings to be shared between the State Government and the authority issuing
the certificate under sub-section (1), in such manner as may be prescribed; (b)
secondly, towards interest to be
paid to the authority; (c)
thirdly, towards the principal
amount due to be paid to the authority; and (d)
the balance, if any, as far as
possible in accordance with the provisions of Section 151 of the Madhya Pradesh
Land Revenue Code, 1959 (No. 20 of 1959). (1)
Nothing in Section 3 shall
:- (a)
affect any interest of the State
Government, a Corporation, a Government company or any banking company in any
property, created by any mortgage, charge, pledge or other encumbrance; or (b)
affect any right or remedy
against any person other than a person referred to in that section, in respect
of a contract of indemnity or guarantee entered into in relation to an
agreement referred to in that section or in respect of any interest referred to
in clause (a). (2)
Where the property of any
person referred to in Section 3 is subject to any mortgage, charge, pledge or
other encumbrance in favour of the State Government, a Corporation, a
Government company or a banking company, then- (a)
in every case of a pledge or
hypothecation of goods, proceedings shall first be taken for sale of goods
pledged or hypothecated and if the proceeds of such sale are less than the sum
due, then proceedings shall be taken for recovery of the balance as arrear of
land revenue : Provided
that where the Collector is of the opinion that it is necessary so to do for
ensuring the recovery of the sum due to the State Government or to a
Corporation, a Government company or a banking company, as the case may be, he
may for reasons to be recorded, direct proceedings to be taken for recovery of
the sum due, as arrear of land revenue before or at the same time the proceedings
to be taken for sale of the goods pledged; (b)
in every case of a mortgage,
charge or other encumbrance on immovable property, such property or, as the
case may be, the interest of the defaulter therein, shall first be sold in
proceedings for recovery of the sum due from that person as arrear of land
revenue, and any other proceedings may be taken thereafter only if the
Collector certifies that there is no prospect of realisation of the entire sum
due through the first mentioned process within a reasonable time. Nothing in
this Act shall debar the recovery of dues under any other law for the time
being in force : Provided
that the authority to which the sum is due shall take recourse to the
provisions of only one law at a time for its recovery. (1)
The State Government may, by
notification, make rules for the purposes of carrying out of the provisions of
this Act. (2)
In particular, and without
prejudice to the generality of the foregoing powers, such rules may be made for
all or any of the following matters, namely :- (a)
the form of certificate to be
sent under sub-section (1) of Section 3; (b)
the manner in which cost of proceedings
shall be shared between the State Government and the authority in terms of
clause (a) of sub-section (6) of Section 3; (c)
any other matter which is to be
or may be prescribed. (3)
All rules made under this
Act shall be laid on the table of the Legislative Assembly. (1)
The Madhya Pradesh Public
Moneys (Recovery of Dues) Act, 1981 (No. 27 of 1981) is hereby repealed. (2)
Notwithstanding such repeal,
any proceedings instituted for the recovery of any sum under the repealed Act
and pending on the date of such repeal shall be deemed to have been instituted
under this Act and shall continue in accordance with the provisions of this
Act. (3)
Notwithstanding any
judgement, decree or order of any Court, anything done or any action taken
(including orders made, notice or certificates issued and proceedings initiated
to recover any amount) or purported to have been done or taken under the
repealed Act shall be deemed to be as valid and effective as if such thing or
action was done or taken under the corresponding provisions of this Act, and
accordingly no suit or other legal proceedings shall be maintained or continued
in any Court questioning the validity of any thing done or any action taken or
purported to have been done or taken under repealed Act on the ground that the
said Act is unconstitutional or void as it had not been reserved for the assent
of the President and assented to by the President. Notifications [1][Notification
No. F. 12-5-88-IF-IV, dated 5-11-1988.] - In exercise
of the powers conferred by clause (i) of Section 2 of the Madhya Pradesh Lok
Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987 (No. 1 of 1988), the State
Government declares the following Scheme as "Socially Desirable
Scheme":- (1) All Schemes under which any Banking Company or a Government
Company advances loans for/to- (a)
Development of land, creation and
use of irrigation facilities and purchase of inputs and implements for
promotion of agriculture. (b)
Small scale, Cottage and Village
Industries. (c)
Self-Employment Programme for
Educated Unemployed Youth (SEPEUY). (d)
Self-Employment Programme for
Urban Poor (SEPUP). (e)
Special Training and Employment
Programme for Urban Poor (STEUP). (f)
Persons covered under Different
Rates of Interest Scheme (DIR). (g)
Persons covered under the
Integrated Rural Development Programme (IRDP). (h)
Scheme administered by the Madhya
Pradesh Antyvasai Sahakari Vikas Nigam. (i)
Other borrowers in Priority
Sectors, including- 1.
Small road and water transport
operators. 2.
Retail traders. 3.
Small Business operators. 4.
Professionals and Self-employed
persons. 5.
Consumption loans for weaker
sections. 6.
Housing to weaker sections. 7.
Educational loans to students. [2][Notification
No. F. 12-2-89-IF-IV, dated 21-9-1989.] - In
exercise of the powers conferred by clause (c) of Section 2 of the Madhya
Pradesh Lok Dhan (Shodhya Rashion Ki Vasuli) Adhiniyam, 1987 (No. 1 of 1988),
the State Government hereby declares "The National Small Industries
Corporation Ltd." as a Corporation, for the purposes of the said Act. [3][Notification
No. F. 12-3-2000-IF-IV, dated the 13-9-2000.] -
In exercise of the powers conferred by clause (i) Section 2 of the Madhya
Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987 (No. 1 of 1988),
and in supersession of this Department Notification No. F. 12-5-88-IF-88-IV,
dated 5th November, 1988, the State Government hereby declare the following
Scheme as "Socially Desirable Schemes", namely :- All Schemes
under which any Banking Company or a Government Company/Corporation advance loans
for/to- (a)
Development of land, creation and
use of irrigation facilities and purchase of inputs and implements for
promotion of agriculture, fisheries, poultry, dairy and allied sector; (b)
Small Scale, Tiny, Cottage and
Village Industries; (c)
Self-employment Programme for
Education Unemployed Youth (SEEUY); (d)
Self-employed Programme for Urban
Poor (SEPUP); (e)
Special Training and Employment
Programme for Urban Poor (STEPUP); (f)
Persons covered under
Differential Rates of Interest (DIR) Scheme; (g)
Persons covered under- (i) ???Integrated Rural
Development Programme (IRDP); (ii) ??Swarn Jayanti Gram
Rojgar Yojna (SJGRY); (iii) ??Swarn Jayanti Shahri
Rojgar Yojna (SJSRY); (iv) ??Prime Minister Rojgar
Yojna (PMRY); (v) ??All other Government
sponsored employment oriented schemes under poverty alleviation programme
launched by Central/State Government from time to time. (h)
Schemes administered by- (i) ???Small Farmers
development Agency; (ii) ??Fish Farmers
Development Agency; (iii) ??Madhya Pradesh State
Cooperative Scheduled Caste Finance and Development Corporation Limited; (iv) ??Madhya Pradesh State
Cooperation Adivasi (Scheduled Tribe) Finance and Development Corporation
Limited; (v) ??Madhya Pradesh State
Pichhda Varg Tatha Alp Sankhyak Vitt Evam Vikas Nigam. (i)
Other borrowers in
Priority/Non-Priority Sectors, including- (1)
Small road and water transport
operators; (2)
Retails traders, wholesale
traders; (3)
Small and Large Business
operators; (4)
Professionals and Self employed
Persons; (5)
Consumption loans for weaker
sections; (6)
Personal Consumer Loans; (7)
Housing loans; (8)
Educational loans; (9)
Tourism and Hoteliaring/Catering; (10)
Financing for development of
infrastructure; (11)
Kisan Credit Cards/Credit Cards. Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli)
Adhiniyam, 1987