(M.P. Act
No. 3 of 1977) [22nd
January, 1977] Received the assent of the
President on the 22nd January, 1977 assent first published in the Madhya
Pradesh Gazette (Extraordinary), dated the 31st January, 1977. An Act to better economic
condition of holders of agricultural land in the weaker sections of the people
by providing further relief from agricultural indebtedness by nullifying the
land grabbing designs resorted to in many a form by lenders of money while and
after extending credit to them and matters connected therewith. Whereas a holder of
agricultural land in the weaker sections of the people is quite often compelled
to seek loan from private money lending agencies to meet his various
obligations of urgent nature; And whereas such private
agencies seldom if ever advance loan to him without security of land, his only
wherewithal; And whereas due to ignorance
of niceties of law or urgency of financial need or both, he falls an easy prey
to them scarcely realising the legal consequences arising out of the documents
which he executes or which they got executed from him accordingly byway of security
for the loan; And where it is necessary to
relieve the holders of agricultural land in the weaker sections of the people
from such exploitation by nullifying such past transactions of loan as also to
put a stop to such transactions. Be it enacted by the Madhya
Pradesh Legislature in the Twenty-seventh Year of the Republic of India as
follows :- (1)
This Act may be called the Madhya Pradesh
Samaj Ke Kamjor Vargon Ke Krishi-Hhumi Dharkakon Ka Udhar Dene Walon Ke Bhumi
Iiadapane Sambandhi Kuchakron Se Paritran Tatha Mukti Adhiniyam, 1976. (2)
It shall be deemed to have come into force on
the 1st day of January, 1971. In this Act, unless the
context otherwise requires,- (a)
"appointed
day" means the 1st day of January, 1971; (b)
"Code" means the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of
1959); (c)
"holder
of agricultural land" in the weaker sections
of the people means a holder of land used for purposes of Agriculture not
exceeding eight hectares of unirrigated land or four hectares of irrigated land
within the State whether as a Bhumiswami or an occupancy tenant or a Government
lessee either in any one or all of the capacities together within the meaning
of the Code. Explanation :-
One hectare of irrigated land shall be equal to two hectares of unirrigated
land and vice versa. (d)
"lender
of money" means a person advancing loan to a
holder of agricultural land, whether registered under the Madhya Pradesh Money
Lenders Act, 1934 (No. 13 of 1934) or not; (e)
"principal
money" in relation to a transaction of loan to which a holder of
agricultural land is a party means actual sum advanced by way of loan in any of
the modes specified in clause (1); (f)
"prohibited transaction of loan" means
a transaction in which a lender of money advances loan to a holder of
agricultural land against security of his interest in land, whether at the time
of advancing the loan or at any time thereafter during the currency of the loan
in any of the following modes, namely ;- (i) ???agreement to sell
land with or without delivery of possession; (ii) ???outright sale of
land with or without delivery of possession accompanied by separate agreement
to re-sell it; (iii)? ?outright sale of land with or without delivery
of possession with a distinct oral understanding that the sale shall not be
acted upon if the loan is re-paid; (iv) ??outright sale of land
with or without delivery of possession with a condition incorporated in the
sale deed to re-sell it on re-payment of the loan; (v) ??transaction in any
modes other than those specified in clauses (i) to (iv) affecting interest in
land including a fraudulent transaction or a transaction designed to defeat the
provisions of any law regulating money lending or interest, for the time being
in force, and includes all those transactions in which a lender of
money has after the appointed day but on or before the date of publication of
this Act in the Gazette, obtained possession of land of the holder of
agricultural land through Court or by force or otherwise or obtained a decree
for such possession to wards satisfaction of loan; (g)
words and expressions used but
not defined in this Act and defined in the Code or the Transfer of Property
Act, 1882 (No. IV of 1882) shall have the meaning respectively assigned to them
in the Code or that Act, as the case may be. The provisions of this Act
and any rules made thereunder shall have effect, notwithstanding anything
inconsistent therewith contained in any other law for the time being in force
or any instrument having effect by virtue of any such law or any custom, usage
or agreement or decree or order of a Court or other authority. It is hereby declared that
all claims in relation to a prohibited transaction of loan subsisting on the
appointed day or entered into thereafter but on or before the date of
publication of this Act in the Gazette shall, notwithstanding anything
contained in the Code or any other enactment for the time being in force or any
decree or order, if any, of any Court or authority be subject to protection and
relief in accordance with the provisions of this Act. A holder of agricultural
land who is a party to any transaction of loan subsisting on the appointed day
or entered into thereafter may apply to the Sub-Divisional Officer within such time,
and in such form and manner as may be prescribed for protection and relief
under this Act. (1)
The Sub-Divisional Officer may, on his own
motion in any transaction of loan and shall, on receipt of an application under
Section 5 in the transaction of loan referred to therein, make preliminary
enquiry as he may in the circumstances of the case deem fit, to ascertain
whether the transaction of loan is a prohibited transaction of loan and on
being satisfied that Section 4 applies to such transaction, he shall, after
recording his opinion therefor, proceed to conduct an enquiry into such
transaction in the manner hereinafter provided. (2)
The Sub-Divisional Officer shall by a notice
served on the parties to the prohibited transaction of loan call upon them to
place all relevant facts and documents before him at such place, on such date
and at such time as may be specified in the notice. (3)
The Sub-Divisional Officer shall at the place
and on the date and time specified in the notice, afford an opportunity to the
parties of being heard in person and may, if necessary, examine all of the
parties interested in land to elucidate information relevant to the transaction
of loan. (4)
During the enquiry the Sub-Divisional Officer
shall, for the purpose of ascertaining the true nature of transaction of loan,
try to collect, as far as may be, information with respect to the following
facts, namely :- (i) ???the amount of
principal money; (ii) ??the market value of
the land at the time of the transaction; (iii) ?adequacy of the
amount of principal money as consideration for sale in the context of then
market value under clause (ii); (iv) ?whether the
consideration shown in the document was paid in whole or in part privately or before
the Sub-Registrar; (v) ??whether possession of
the land was actually delivered to the lender of money as per recitals in the
said document. If not, when and in what manner the lender of money obtained
possession of the land; (vi) ?what were the terms of
the actual agreement between the lender of money and the holder of agricultural
land including the rate of interest; (vii) the extent of urgency for the loan and the availability of
other sources to the holder of agricultural land to obtain the same; (viii) payment, if any, made by the holder of agricultural land to
the lender of money towards the loan; (ix)? whether the lender of
money is registered money lender or not; (x) ??any other surrounding
circumstances which the Sub-Divisional Officer may deem fit to consider. (1)
If after the enquiry, the Sub-Divisional
Officer is satisfied that- (i) ????the transaction of
loan is not a prohibited transaction of loan he shall dismiss the application
or close the proceedings; (ii) ???the transaction of
loan in substance is a prohibited transaction of loan he shall declare such
transaction to be void and shall- (a)
pass an order setting aside the
transfer of land to the lender of money and consequently restoring the
possession of land to the holder of agricultural land, or (b)
where in his opinion it is not
feasible to restore the possession of land, pass order directing the lender of
money to pay the difference of price under sub-section (2), and (c)
pass such other consequential
orders as may be necessary : Provided that nothing in
this clause shall prejudice the right of the lender of money to enforce his
right to recover the loan advanced by him to the holder of agricultural land
under such transaction by due process of law within a period of three months
from the date of final declaration of prohibited transaction of loan void
notwithstanding anything contained in the Limitation Act, 1963 (No. 36 of
1963). (2)
Where for any reason whatsoever to be
recorded in writing it is not possible to restore such land to the holder of
agricultural land, he shall fix the price of such land, in such manner as may
be prescribed, which it would have fetched at the time of transfer and order
the lender of money to pay the difference, if any, between the price so fixed
and the amount actually advanced to the holder of agricultural land together
with interest at the current bank rate for the period upto the date of payment,
within a period of six months. (3)
If any order is passed under sub-section (2),
the Sub-Divisional Officer may also determine in such manner as may be
prescribed, the net income which has accrued to the lender of money during the
period land remained with him and order the lender of money to pay the same to
the holder of agricultural land within a period of 30 days. (4)
If the lender of money fails to deliver the
possession of the land to the holder of agricultural land consequent on the
setting aside the transfer under clause (ii) of sub-section (1), he shall be
deemed to be in unauthorised possession of such land from the date of setting
aside of the transfer and the provisions of Section 248 of the Code shall mutatis mutandis apply thereto
as they apply to the unauthorised possession of Government land. (5)
If the lender of money fails to pay- (i) ????the difference of
price ordered to be paid under sub-section (2); or (ii) ??the net income
determined under sub-section (3), within the time specified in
sub-section (2) or sub-section (3), as the case may be, the same shall be
recoverable as an arrear of land revenue and the amount so recovered shall be
paid to the holder of agricultural land. Any person aggrieved by an
order of the Sub-Divisional Officer under Section 7 may, within 30 days of the
date of passing of such order, appeal to the Collector in such form and manner
and accompanied by such fee as may be prescribed : Provided that in computing
the period aforesaid time requisite for obtaining a copy of the order appealed
against shall be excluded. Save as otherwise expressly
provided in this Act every order made by the Collector in appeal or of a
Sub-Divisional Officer, shall, if no appeal is filed, be final and shall not be
called in question, in any Court, Tribunal or Authority by way of an appeal or
revision or in any original suit, application or execution proceedings. No legal practitioner shall
appear on behalf of any party interested in any proceeding under this Act. Any proceeding pending in a
Court of law in relation to land which can be a subject matter of enquiry by
the Sub-Divisional Officer under this Act shall, on the publication of this Act
in the Gazette, be decided by the Court in accordance with the provisions of
this Act, notwithstanding anything to the contrary contained in any law for the
time being in force. (1)
Notwithstanding anything contained in any
enactment for the time being in force, no lender of money shall, on and from
the date of publication of this Act in the Gazette, enter into a prohibited
transaction of loan with a holder of agricultural land. (2)
Any prohibited transaction of loan entered
into in contravention of the provisions of sub-section (1) shall be absolutely
null and void and no Court shall entertain any application or suit to enforce
any claim of lender of money arising out of prohibited transaction of loan. All enquiries and
proceedings before the Sub-Divisional Officer, or the Collector shall be deemed
to be judicial proceedings within the meaning of Sections 193 and 228 of the
Indian Penal Code, 1860 (XLV of 1860) and for the purposes of Section 196
thereof. Subject to provisions of
Section 11, no Civil Court shall have any jurisdiction to settle, decide or
deal with any question which is by or under this Act required to be settled,
decided or dealt with by the Sub-Divisional Officer or the Collector. [1][(1)] Notwithstanding
anything contained in any law for the time being in force where a tender of
money transfers any land, which may be a subject matter of a prohibited
transaction of loan, by way of sale, gift, exchange, lease or otherwise, such
transfer shall be deemed to have been made to defeat the provisions of this Act
and be null and void. [2][(2)
If any question arises as to whether a transaction is prohibited transaction of
loan to which the provisions of sub-section (1) apply, the holder of
agricultural land who is a party to such transaction shall apply to the
Sub-Divisional Officer : (i) ???where such
transaction was entered into after the 31st January, 1977 but prior to the
commencement of the Madhya Pradesh Samaj Ke Kamjor Vargon Ke Krishi Bhumi
Dharakon Ka Udhar Dene Walon Ke Bhumi Hadapane Sambandhi Kuchakron Se Paritran
Tatha Mukti (Sanshodhan) Adhiniyam, 1988 within 5 years of such commencement;
and (ii) ??where such
transaction is entered into after the commencement of the said Act within 6
years of the date of such transaction in the form and manner prescribed under
Section 5. The provisions of Section 17 of the Limitation Act, 1963 (No. 36 of
1963) shall apply for computing limitation under this sub-section. (3) ??The Sub-Divisional Officer may, on his own
motion or on receipt of the application under sub-section (2) proceed to deal
with the matter as if it were an action taken on his own motion under Section 6
or an application under Section 5 as the case may be and the provisions of this
Act shall so far as may be apply thereto as they apply to an action taken on
his own motion under Section 6 or to an application under Section 5.] If any doubt or difficulty
arises in giving effect to the provisions of this Act, the State Government
may, by order, make such provisions, not inconsistent with the purposes of this
Act, as appear to them to be necessary or expedient for removing the doubt or
difficulty. (1)
No suit, prosecution or other legal
proceedings shall lie against any person for anything which is in good faith
done or intended to be done in pursuance of this Act or any rules made
thereunder. (2)
No suit or other legal proceedings shall lie
against the State Government for any damage caused or likely to be caused or
for any injury suffered or likely to be suffered, by virtue of any provisions
of this Act, or for anything which is in good faith done or intended to be done
in pursuance of this Act or any rules made thereunder. (1)
The State Government may, by notification,
make rules to give effect to the provisions of this Act. (2)
In particular, and without prejudice to the
generality of the foregoing power, such rules may provide for all or any of the
following matter, namely :- (i) ???the time within which
and form and manner in which application shall be made under Section 5; (ii) ??the manner in which
the price of land shall be fixed under sub-section (3) of Section 7; (iii) ?the manner in which
net income may be determined under subsection (3) of Section 7; (iv)? ?the form and manner in which an appeal shall
be made under Section 8 and the fee with which such appeal shall be
accompanied; (v) ??any other matter which
has to be or may be prescribed. (3)
All rules made under this Act shall be laid
on the table of the Legislative Assembly.Madhya
Pradesh Samaj Ke Kamjor Vargon Ke Krishi-Hhumi Dharkakon Ka Udhar Dene Walon Ke
Bhumi Iiadapane Sambandhi Kuchakron Se Paritran Tatha Mukti Adhiniyam, 1976