The ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS (MORATORIUM) ACT, 2004

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THE ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS
(MORATORIUM) ACT, 2004
(ACT NO. 3 OF 2004)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement
2. Declaration
3. Definitions
4. Declaration of Moratorium
5. Bar of Jurisdiction
6. Effect of other laws
7. Power to remove difficulties
8. Power to make rules
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THE ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS
(MORATORIUM) ACT, 2004
(ACT NO. 3 OF 2004)
(13th July, 2004)
AN ACT TO PROVIDE TO DECLARE MORATORIUM ON FARM
RELATED DEBTS IN THE STATE OF ANDHRA PRADESH AND FOR
MATTERS CONNECTED THEREWITH AND INCIDENTAL THERETO.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the  Fifty-fifth Year of the Republic of India as follows:-
1.Short title, extent and commencement - (1) This Act may be called the Andhra
Pradesh Farmers Agricultural Debts (Moratorium) Act, 2004.
(2) It extends to the whole of the State of Andhra Pradesh.
( 3 ) I t s h a l l c o m e i n t o f o r c e o n s u c h d a t e a s t h e S t a t e G o v e r n m e n t m a y , b y
notification, in the Andhra Pradesh Gazette, appoint.
2. Declaration –It is hereby declared that this Act is for giving effect to the policy of the
State towards securing the principles specified in article 46 of the Constitution.
3. Definitions– In this Act, unless the context otherwise requires, -
(a) ‘agriculture’ with its grammatical variations and cognate expressions
includes,-
(i) horticulture;
(ii) the raising of crops (including plantation crops), grass or garden
produce;
(iii) dairy farming;
(iv) poultry farming;
(v) breeding of live stock and bees;
(vi) grazing;
( b ) ‘ a g r i c u l t u r a l l a n d ’ m e a n s l a n d u s e d f o r p u r p o s e s o f a g r i c u l t u r e a n d
which is assessed by the Government to land revenue but not being land
appurtenant to a residential building situate within a Municipality or
Cantonment;
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( c ) ‘ C r e d i t o r ’ m e a n s a p e r s o n b u t d o e s n o t i n c l u d e a C o m m e r c i a l B a n k
established under the Banking Regulation Act, 1949 or a Co-operative
C r e d i t i n s t i t u t i o n r e g i s t e r e d u n d e r t h e A n d h r a P r a d e s h C o - o p e r a t i v e
Societies Act, 1964 (Act 7 of 1964)  or the Andhra Pradesh Mutually Aided
Co-operative Societies Act, 1995 (Act No.30 of 1995) from or in respect of
whom the debtor has borrowed or incurred a debt and includes his heirs,
legal representatives and assigns;
(d) ‘debt’ includes any liability owing to a creditor in cash or in kind, whether
secured or unsecured payable to any Money lender or to a creditor;
(e) ‘Money Lender’ means a person but does not include a Commercial Bank
established under the Banking Regulation Act, 1949 or a Co-operative
C r e d i t I n s t i t u t i o n r e g i s t e r e d u n d e r t h e A n d h r a P r a d e s h C o - o p e r a t i v e
societies Act, 1964 or the Andhra Pradesh Mutually Aided Co-operative
Societies Act, 1995 whose main or subsidiary occupation in a business of
advancing and realizing loans or acceptance of deposits in course of such
business;
(f) ‘Moratorium’ means a legal authorisation to a debtor to postpone
payment for a certain time.
4. Declaration of Moratorium – Notwithstanding anything contained in any other law
for the time being in force or any contract or other instrument having the force of law with
effect from the commencement of this Act, every debt borrowed or incurred and including
interest thereon for the purpose of agriculture and cultivation of agricultural land from a
c redi to r o r a mo n ey l en d er, a mo ra to riu m sh a ll b e d ec la red f o r a p e rio d of s ix mon ths
from the date of commencement of this Act.
5 . B a r o f J u r i s d i c t i o n -  No Civil Court shall entertain any suit or other proceeding
a g a i n s t t h e d e b t o r f o r t h e r e c o v e r y o f a n y a m o u n t o f t h e d e b t b o r r o w e d o r i n c u r r e d
including interest, thereon for which a moratorium has been declared under Section (4).
Provided that where any suit or other proceeding  is instituted jointly against the
debtor and any other  person nothing in this section shall apply to the maintainability  of
such suit or proceeding in so far as it relates to such other person.
6. Effect of other laws – Save as otherwise provided in this Act, the provisions of this Act
shall be in addition to and not in derogation of any other law for the time being in force.
7. Power to remove difficulties –If any difficulty arises in giving effect to the provisions
o f t h i s A c t , t h e G o v e r n m e n t m a y , b y g e n e r a l o r s p e c i a l o r d e r p u b l i s h i n t h e A n d h r a
Pradesh Gazette make  such provisions not inconsistent with the provisions of this Act, as
appear to them to be necessary or expedient for the removal of the difficulty.
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8. Power to make rules –(1) The State Government may, by notification in the Andhra
Pradesh Gazette, make rules for carrying out all or any of the purposes of this Act.
(2) Every rule made under this Act, shall, immediately after it is made, be laid
before the Legislative Assembly  of the State, if it is in session  and if it is not in session in
t h e s e s s i o n i m m e d i a t e l y f o l l o w i n g f o r a t o t a l p e r i o d o f f o u r t e e n d a y s w h i c h m a y b e
comprised in one session or in two successive sessions, and if, before the expiration of the
session in which it is so laid or the session immediately following the Legislative Assembly
agrees in making any modification in the rule or in the annulment of the rule, the rule
shall from the date on which the modification or annulment is notified, have effect only in
such modified form or shall stand annulled as the case may be, so however, at any such
modification or annulment shall be without prejudice to the validity of anything previously
done under  that rule.
K.G.SHANKAR,
Secretary to Government,
Legislative Affairs & Justice (FAC),
Law Department.

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