The ASSAM DISPLACED PERSONS (REHABILITATION LOANS) ACT, 1951

ASSAM. ACT XVI OF 1951 
*THE ASSAM DISPLACED PERSONS (REHABIUITATION LOANSJ 
ACT, 1951 
[Published in the "Assam Gazette", dated the 20th June 1951] 
An Ad to provide for loaus to displaced persm1s for their i·ebabilitatioDI 
Whereas it is expedient to provide for the grant and recovery of loans to 
displaced persons for their rehab ilitation : 
It is hereby enacted as follows : 
. 1. Short title, extent and commencement.. - (1) This Act may be called 
the Assam Displaced Persons (Rehabilit ation Loans) A ct, 1951. 
(2) It extents to th e whole of Assam. 
(3) It shall come into force at <mce. 
2. . l)efinitions.-In this Act, unless there is anything repugnant in the 
subject or context,-
(a) "Borrower" means a displaced person, to whom a Joan bas been 
&ranted under this Act and includes the heirs, succefisors, assigns and the sureties 
of a borrower ; 
(b) "Deputy Com.missioner" means th~ Deputy Commissioner of th~ 
District; 
(c) "Displaced person" means (i) any person who on account of setting 
up of the two Dominions of India and Pakistan or on account of civil disturbances 
or the fear · of such disturbances in any area now forming part of India or . Pakis­
tan has been displaced from or compelled to leave his place of residence in such 
area after the [Prescribed date] 1 and who has subsequently been residing in India; 
and is in distress. 
*For Statement of Objects .and Reasons see "Assam Gazett e", 1951, Part V, 
page 24. 
1 Substituted by the Assam Displaced Persons (Rehabilitatioo Loans),' 
(Amendment) Act, 1951 (Act XX of 1951) for "first day of March. 
J9.41". 
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(i) an association, corporatecl or incorporated, formed by several such per­
sons as defined in (i) above ; 
(d) "Government" means the Government of the State of Assam; 
(e) "Loan" means a loan granted or deemed to have been granted, under 
the provisions- of this Act either in cash or in kind or partly in cash and partly 
in kind ; 
(0 "Relief and Rehabilitation Commis~ioner" means an Officer appointed 
as sucb by the Government. 
(gl "Prescribt ·d" mc::ans prescribed bv rules made under this Act. 
(h_1 "Sanct io11ing Authority" me:rns tte authority wbo sanctions a loan ; 
1 (i) "Prescribed dat e" 
(J) in relation to a person displaced from or compelled to leave his place 
of residenc e 111 any area now forming part of East Bengal, means 
the fifteenth day ot October, 1946. 
(2) in relation to a person displaced from or compelled to leave his place 
of i·csidc nce i !1 any area now for ming part of Pakistan oth er than East 
Ben gal, mciliE tbe fitst clay of Mar cil, 1947. 
(3) in ~·elafinn to a pe · ~; ::; .n dis~lac.:;; J tror,1 or compelled to leave his plac\; 
of re.~i<l nee in i:l.ny arm ncn'' formjrig part of India, means the first 
d;::y of January, 1950 }2. 
3. Apph :atk .: for Priw ,-A displan:d p~r~o n may s11omit to the Deputy 
Commi ssioner within who se jurisdic tion he in tends to resid e or to carry on his 
trade, professim1 or calli ng, an application for loan on '.\uch form as may be 
prescribed ; 
4. Gr~mt of fo,'.ms,- (! ) Tb~ Deputy Commissioner or such other ofhcer 
as may be empow ers d by the Gover rm e1t in this behalf may, subject to any 
general or special directio n of t:1c Go vernme nt, sanction loan s not excc~eding such 
limit as may be fo;ecl by the Grwr.rwn~n t fro m t:me to time. 
(2) Tb e Rdief r.na R.eirnbi!itation Com missio1ier may , subject to any 
genera l or sp::;cia l di rcctioll of 1:1e Gov ernm ent, ·;anction loans not exceeding such 
limit as may be fi;;.ed by Governm ent. 
The Deputy Commi s<>ioncr shall forward to the Relief and Rehabihtation 
Ccimmissioncr with bis rernarks such applications as require loans exceeding 
the amount he is autbo nsed to f;anction. 
5. Execution of loan buml-Before receiving payment of the loan the 
borrower shall execuk a bond i ;1 the prescribed form undertaking to apply the 
money for the pur pose for which, and to comply with the terms and conditions 
on which, the loan is sanctiond. 
6. Security fo1· Ioar:.-- (1) All assets purchased with or created trom the 
Joan shall be deemerl to be n°0rtga ged or hypothecated, as the case may he, to 
Governm ent for the repav;nent of the loan with interc gt due thereon and the 
amount of the Joan and the int erest thereon shall be ~he first charge on such 
assets. 
(2) Subject to sub-s ec-tim1 (1) al:>OVf\ t!ie borrower shall not without the 
prior approval of the sanctioning authority mortgage , convey or otherwise tran s­
fer any of his inter ests in the whole er any part of the assets purchased with or 
created from the loan : 
Provided that no~hin g in this ~ec ti o n sh..ill affect the borrower's right to sell 
such articles of his stock -in-trad e as are meant for sale to customers in the normal 
course of business. 
2 Inserte d by Assam Act XX of 1951. 
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384 
7. Inspection of assets.-Any person authorised in this behalf by the sanc­
tioning authority may enter any place or premises for inspecting any land, cons­
tructions, machineries, appliances, materials or stock-in-trade purchase, hired or 
created or 'Proposed to be purchased, hired or created by any borrower with the 
loan granted to him. 
8. Power fo require re-payment before due period .-Notwithstanding any 
other . provision to the contrary in this Act or in the rules made- thereunder or 
in any agreem ent, the sanctioning authority or such other authority as may be 
empowered by Government so to do may, after giving the borrower an opportu­
nity to show cause , order the borrower to repay the loan in full or any part of it, 
with interest, within such time as may be specified in the order under one or 
more of the following provisions :-
(i) if the borrow er supplied any · false or misleading information or sup­
pressed any fact in obtaining the loan ; 
{ii) if the borrower fails to comply with the terms and conditions t•nder 
which the loan has been sanctioned ; 
(iii) if the sar.ctionin g authority is satisfied that the borrower has applied 
any porti011 of the Joan for purpo ses oth er than that for which it was granted ; 
, (iv) if the borrower has wilfully or by negligence caused material dete­
rioration to the assets pur chas ed with or created from the loan ; ot 
(v) if the sanctioning authority considers it essential to effect immediate 
recovery. of .the Joan in order to prote ct the interest of Government. 
9. P-0wer fo postporw rc fi!i~atfo n ·or fo wriitc off.-N otwithstanding anything 
contained in this Act or the rules mad e thereunder :- , 
(a) The Government or such other authority as may be prescribed may 
postpo ne the reali zation of any instalm ent of the loan ; 
(b) Government may write off any portion of the loan or of any interest 
thereo n. 
10. Power fo mllke recovery or fto hike over 2ssets.-If the borrower fails 
to repa y any amount of the loan or to pay any interest thereon under the terms 
and condi tions of the loan or under the provi &ionfi of section 9, the Deputy Com­
missioner may (a) recover as arrears of land revenue such loan, instalment, inte­
rest or any cost incurred in recovering the loan with interest and also incidental ~ . 
expenses incurred in issuing the loan ; 
(b) take over in whole or in · part the assets purchased with or created · 
from th::: lonn on such term and conditions as may be fixed by Government. 
11.. Delegation of powers.-Subject to the provisions of this Act the Gov~ 
ernni cnt may by order delegate all or any of its powe rs, ·duties and functions · 
under this Act or the rules made thereunder to airy Otlicer under its control. 
12. Protection cf action taken llllder the Act.-No sujt, prosecution or other 
legal proceedings shall lie against any person for anything ,in good · faith done 
or intended to be done in pursua1ice of this Act, or any rules or order made 
thereunder . 
13. RemissiOn of stim:11p ··duty and regis tration foe.-The Government may 
by notification in the offici;:;J Gazett e remit the stam p duty under · any law for 
the tim e being in force or any fee under the law of registration for the time being ' 
in force , chargeable on any instrument executed under this Act or the rules made 
thereunder by or on behalf of a displaced person. 
14. Retroi;:pectivc Application o~ t~e Act to prior foans.-(1)1 Every lo·an 
granted since the first day of April 1949 to a displaced · person for his rehabili- , 
tation by any Officer or authority subordinate to Government shall for the pur­
pese of its recovery be d~emect to be a loan granted under this Act and the pro­
visfons of this Act shall mutatis mutandis apply to such Joan as they apply to . 
a loan granted under this Act. 
isection 14 renumbered as sub-section (1) and a new sub-section (2) inserted 
by the Assam Displaced Persons (Rehabilitation Loans) (Amendment) 
Act, 1953. .. 
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' [:(2) Every loan . gr.anted ih the District of Cachar between the fifteenth day 
of April, -1950, and the actual date of transfer of the adminisration of relief and 
r~habihta.ti0n of displaced persons in the district of Cachar from the Government 
of India ti) the Go~ermnent · of Assam to -a displaced person for his rehabilitation 
~y or ·on behalf of the Government of India. shall, for the purpose of its recovery, 
be deemed to be a loan granted under this Act and the urovisions of this Act 
shall mutatis mutandis apply to ' such a loan granted under this Act.] 1 
15. Power -to make_ rules.-(1) Tbe Government may make rules for carry­
ing out the purposes of this Act. 
(2) In particular, and without prejudice to the generality of the foregoing 
. provisions, such rules may prnvide for all or any of the following matters, 
namely:-
(a) . the fornis of application for loan , order of the sanctioning authority, 
the ' e0nd and any oth~r 'instrnment to be executed by the borrower and the 
notices and directions by the sanctioning authority and other authorities ; 
(b) the terms and condition s of loans and fixation of instalments ; 
- (c) the fixation of the rate of intere st and the manner of calculation 
·thereof; 
· ~ · (d} the ext~nt, and manner of issue, of loans and · the procedure !or 
realization ; ~ ' · , 
· (e) the :;fQrm and manner in. which accounts and registers are to be 
maintained ; · 
· · (f). the manner and cir cumstanc es in which remiss.ion of principal or intc~ 
rest may -be granted and suspen sion of realization may be allowed; 
(g) the ·manner in vvhich and the authority to whom appea ls against oractll 
issued unCler this Act may be institut ed ; 
·· (h) the irn:mner an(! the machin ery fol' investigations into applications for 
loan s and i11.to the proper utilization of the loan money ; 
(i) all ·mat ters , w h i~h are requ ired by this Act to be prescribed. 

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