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TAMIL NADU PAWNBROKERS AND DEBT RELIEF LAWS (AMENDMENT) ACT, 1980

TAMIL NADU PAWNBROKERS AND DEBT RELIEF LAWS (AMENDMENT) ACT, 1980

TAMIL NADU PAWNBROKERS AND DEBT RELIEF LAWS (AMENDMENT) ACT, 1980

Preamble - TAMIL NADU PAWNBROKERS AND DEBT RELIEF LAWS (AMENDMENT) ACT, 1980

THE TAMIL NADU PAWNBROKERS AND DEBT RELIEF LAWS (AMENDMENT) ACT, 1980

[Act No. 35 of 1980]

[13th October, 1980]

PREAMBLE

An Act further to amend the Tamil Nadu Pawnbrokers Act and the Debt Relief Laws in force in the State of Tamil Nadu.

Be it enacted by the Legislature of the State of Tamil Nadu in the Thirty-first Year of the Republic of India as follows:--

Section 1 - Short title and commencement

(1)     This Act may be called the Tamil Nadu Pawnbrokers and Debt Relief Laws (Amendment) Act, 1980.

 

(2)     Clauses (1) and (3) of section 3 shall be deemed to have come into force on the 13th day of June 1980 and the rest of this Act shall come into force at once.

Section 2 - Amendment of Jamil Nadu, Act XXIII of 1943

In the Tamil Nadu Pawnbrokers Act, 1943 (Tamil Nadu Act" XXIII of 1943), in section 12-A, in sub-section (1), for clause (ii), the following clause shall be substituted, namely :--

" (ii)     (a) where any debtor to whom the provisions of the Tamil Nadu Debt Relief Act, 1976 (President's Act 31 of 1976) are applicable, has pledged any article with any pawnbroker, the pawnbroker shall not sell or otherwise dispose of, in any manner whatsoever, any such pledged article during the period upto and inclusive of the date of publication of the list of debtors under clause (a) of sub-section (3-A) of section 5 of the said Act and, in the case of debtors whose names are so published in the said list, the pawnbroker shall not sell or otherwise dispose of, in any manner whatsoever, the articles pledged by such debtors until final orders (including orders on appeal) are passed on the applications made by them;

(b) ???where any debtor who is entitled to have the debt scaled down under section 8 of the Tamil Nadu Debt Relief Act 1979 (Tamil Nadu Act 40 of 1979), has pledged any article with any pawnbroker, the pawnbroker shall not sell or otherwise dispose of, in any manner whatsoever, any such pledged article during the period upto and inclusive of the expiry of the last day of the eighteenth month immediately following the date of publication of the Tamil Nadu Pawnbrokers and Debt Relief Laws (Amendment) Act, 1980, in the Tamil Nadu Government Gazette, and the period of one week thereafter;

(c) ???where any debtor to whom, the provisions of the Tamil Nadu Debt Relief Act, 1980 (Tamil Nadu Act 13 of 1980) are applicable, has pledged any article with any pawnbroker, the pawnbroker shall not sell or otherwise dispose of, in any manner whatsoever, any such pledged article during the period upto and inclusive of the date of publication of the list of debtors under clause (a) of sub-section (3) of section 5 of the said Act and, in the case of debtors whose names are so published in the said list, the pawnbroker shall not sell or otherwise dispose of, in any manner whatsoever, the articles pledged by such debtors until final orders (including orders on appeal) are passed on the applications made by them.".

Section 3 - Amendment of President's Act 31 of 1976

In the Tamil Nadu Debt Relief Act 1976 (President's Act 31 of 1976),--

(1)     in section 5,--

 

(i)       in sub-section (2-A), in clause (c),--

 

(a)      for the words "six months", the words " twelve months " shall be substituted;

 

(b)      in the proviso, for the words " seven months ", the words " thirteen; months " shall be substituted;

 

(ii)      in sub-section (3-A), in clause (a), for the words "seven months", the words "thirteen months" shall be substituted;

 

(2)     after section 5, the following section shall be inserted, namely:--

" 5-A. Ban on the sale of movable properties pledged by debtors.--

Notwithstanding anything contained in this Act or in any other law for the time being in force relating to the sale or pledged articles, where any debtor has pledged any movable property with the creditor, the creditor or the transferee of the creditor shall not sell or otherwise dispose of, in any manner whatsoever, any such movable property during the period upto and, inclusive of the date of publication of the list of debtors under clause (a) of sub-section (3-A) of section 5 and, in the case of debtors whose names are so published in the said list, the creditor or the transferee of the creditor shall not sell or otherwise dispose of in any manner whatsoever, the movable properties pledged by such debtors until final orders (including orders on appeal) are passed on the applications made by them. ";

(3)     in section 6,--

 

(i)       in sub-section (1-A), in clause (c),--

 

(a)      for the words "six months", the words, "twelve months " shall be substituted;

 

(b)      in the proviso, for the words "seven months ", the words " thirteen months " shall be substituted;

 

(ii)      in sub-section (2-A), in clause (a), for the words " seven months ", the words " thirteen months " shall be substituted.

Section 4 - Amendment of Tamil Nadu Act 40 of 1979

In the Tamil Nadu Debt Relief Act, 1979 (Tamil Nadu Act 40 of 1979),--

(1)     after section 10, the following section shall be inserted, namely :--

" 10-A. Payment in installment of scaled down debts.--

(1)     Notwithstanding any law, custom, contract, or decree of court to the contrary, a debtor shall be entitled to pay within six months from the date of publication of the Tamil Nadu Pawnbrokers and Debt Relief Laws (Amendment) Act, 1980, in the Tamil Nadu Government Gazette, (hereafter in this section referred to as the said date), one-third of the amount of the debt as scaled down in accordance with the provisions of this Act and the balance of the debt in two equal half-yearly installment on or before the last day of the twelfth month and eighteenth month immediately following the said date respectively with the interest due on such instalment upto that date

 

(2)     Where before the said date, a court has passed a decree for the repayment of the debt as scaled down in accordance with the provisions of this Act, it shall on application of the judgment-debtor within two months from the said date, apply the provisions of sub-section (1) to such decree and amend the decree accordingly.

 

(3)     In any suit instituted after the said date, the court in decreeing the suit shall provide for the payment of such instalment or instalment? as would have become payable under the provisions of sub-section (1) and the balance in further installment as specified therein.

 

(4)     In any suit pending on the said date for the recovery of the amount of the debt as scaled down in accordance with the provisions of this Act, the court shall pass a decree for the payment of such instalment or installment as would have become payable under the provisions of sub-section (1) and the balance in further installment as specified therein.

 

(5)     Nothing contained in this section 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 own motion or upon a consideration of all the circumstances of the case or upon an agreement between the parties.

 

(6)     Where before the said date any debtor has paid to the creditor towards the repayment of the debt as scaled down under this Act any amount in excess of the amount of instalment as would have become due under the provisions of sub-section (1),--

 

(i)       the debtor shall be entitled to adjust the excess amount so paid to one or more future installment, and

 

(ii)      nothing contained in this sub-section shall be deemed to require the creditor to refund any sum which has been paid to him.

 

(7)     Nothing contained in this section shall apply to any debt secured by any mortgage of the description referred to in sub-section (1) of section 9.";

 

(2)     ?after section 14, the following section shall be inserted, namely:--

"14-A. Ban on the sale of movable properties pledged by debtors.--

Notwithstanding anything contained in this Act or in any other law for the time being in force relating to the sale of pledged articles, where any debtor who is entitled to have the debt scaled down under section 8 has pledged any movable property with the creditor, the creditor shall not sell or otherwise dispose of, in any manner whatsoever, any such movable property during the period upto and inclusive of the expiry of the last day of the eighteenth month immediately following the date of publication of the Tamil Nadu Pawnbrokers and Debt Relief Laws (Amendment) Act, 1980, in the Tamil Nadu Government Gazette, 'and the period of one week thereafter.".

Section 5 - Amendment of Tamil Nadu Act 13 of 1980

In the Tamil Nadu Debt Relief Act, 1980 (Tamil Nadu Act 13 of 1980), after section 5, the following section shall be inserted, namely :--

" 5-A. Ban on the sale of movable properties pledged by debtors.--

Notwithstanding anything contained in this Act or in any other law for the time being in force relating to the sale of pledged articles, where any debtor has pledged any movable property with the creditor, the creditor or the transferee of the creditor shall not sell or otherwise dispose of, in any manner whatsoever, any such movable property during the period upto and inclusive of the date of publication of the list of debtors under clause (a) of sub-section (3) of section 5 and, in the case of debtors whose names are so published in the said list, the creditor or the transferee of the creditor shall not sell or otherwise dispose of, in any manner whatsoever, the "movable properties pledged by such debtors until final orders (including orders on appeal) are passed on the applications made by them.".

Section 6 - Stay of certain proceedings

(1)     Notwithstanding anything contained in any law for the time being in force, every proceeding for the execution of a decree (other than the making of an application for the execution of a decree) including proceedings consequent on orders or decrees made in appeals, revision petitions or applications for review, for the recovery of any amount of debt (including interest, if any) which has been scaled down in accordance with the provisions of the Tamil Nadu Debt Relief Act, 1979 (Tamil Nadu Act 40 of 1979) (hereafter in this section referred to as the said Act), pending on the date of publication of this Act in the Tamil Nadu Government Gazette (hereafter in this section referred to as the said date), against any person who is a debtor within the meaning of the said Act, shall, subject to the next succeeding sub-section, stand stayed until the expiry of six months from the said date and where an application has been made by the judgment-debtor under sub-section (2) of section 10-A of the said Act, until the final disposal of the said application:

Provided that nothing in this sub-section shall apply to the sale, in respect of any such debt, of--

(i)       any movable property held and concluded before the said date;

 

(ii)      any immovable property confirmed before the said date:

Provided further that nothing in this sub-section shall apply to any proceeding in respect of any debt secured by any mortgage of the description referred to in sub-section (1) of section 9 of the said Act.

(2)     Nothing contained in this section shall be deemed to invalidate any proceeding in which the order passed has been executed or satisfied in full before the said date.