The ASSAM DISPLACED PERSONS (REHABILITATION LOANS) ACT, 1951

ASSAM. ACT XVI OF 1951 
*THE ASSAM DISPLACED PERSONS (REHABILITATION LOANS) 
ACT, 1951 
[Published in the "Assam Gazette", dated the 20th June 1951] 
An Ad to provide for loaus to displaced persm1s for their l'cbabilitation 
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 unce. 
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 has been 
&ranted under this Act and includes the heirs, succefisors, assigns and the sureties 
of a borrower ; 
(b) "Deputy Commissioner" 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. 
19.41". 
383 
(i) an association, corporatecl or incorporated, formed by several such per­
sons as defined in (i) above ; 
(d) "Government" means the Govemment of the State of Assam; 
(e) "Loan" means a loan granted or deemed to have been granted, under 
the provi sions- of this Act either in cash or in kind or partly in cash and partly 
m kind; 
(f) "Relief and Rehabilitation Commis~ioner" means an Officer appointed 
as sucb by the Governm ent. 
(gl "Prescribt·d" mc::ans prescr ibed bv rules made und er this Act. 
(h_, "Sanct io11ing Authority" me::tns 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·csidcnce i !l any area now forming part of Pak istan oth er than East 
Bengal, mciliE tbe litst clay of Mar cil, 1947. 
(3) in ~·ela t inn to a pe · ~ ;c.n dis~la c .c; J tr or,1 or compelled to leave his plac~ 
of re.~i<l nee in i:l.ny arcil nov · form jng part of India, means the first 
d;::y of January, 1950 )2. 
3. Apph:atk .: i:'<i3r Paw, -A displan:d p~r~o n may Sllomit to the Deput y 
Commi ssioner withi n who se jurisdic tion he intends 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 liJ..:ms,- (! ) Tb~ Deputy Commissioner or such other ofhcer 
as may be empowersd by the Gover rm e1t in this behalf may, subject to any 
genera l or special directio n of t:1c Go vernm ent, sanction loan s not excc~eding such 
limit as may be tixecl by the Grwc:rwn~n t fro m t:me to time. 
(2) Tb e Rdief r.na R.eiwbi!itation Com missiOlicr may , subject to any 
genera l or sp::;cia l dire ction of ,;te Gov ernm ent, ·;anction loans not exceeding such 
limit as may be fi;;.ed by Government . 
The Deputy Conuni s<>ioncr sha ll forward to the Relief and Rehabihtation 
Cc>mmissioncr with his rernarks such applications as require loans exceeding 
the amo unt he is autbon sed to f;anction. 
5. Execution of loan bo<Hl-Befor e receiving payment of the loan the 
borrower shall execuk a bon d i;1 the prescribe d form undertakin g 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 fm· Ioar:.-- (1) All asse ts purchased with or created trom the 
Joan sha ll be deemerl to be n"ortgaged or hypothecated, as the case may he, to 
Governm ent for the repav;nent of the loan with intere 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:>ovP-, tbe 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 who le cr any part of the assets purchased with or 
created from the loan : 
Provided that no~hin g in this ~e cti o n sh.1ll affect the borrower's right to sc11 
such articles of his stock -in-trade as are meant f0r sale to customers in the normal 
co urse of business. 
2 Inserte d by Assam Act XX of 1951. 
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 'to require re-payment bef&re 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 specifled 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 l'rtder 
which the loan has been sanctioned ; 
(iii) if the sanc tionin g authority is satisfied that the borrower has applied 
any portimt of the Joan fo r purpo ses oth er than that for which it was granted ; 
, (iv) if the borrower has wilfully or by negligence caused rna terial 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{)wer to· po stpone rc fi!i~at! on ·m· tn wdtc off.-Notwithstanding 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 {{) mllke recovery or fto ~- ~~k c 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 a1ry Otlicer under its control. 
12. Protection of action taken lUlder 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 thi s Act, or any rules or order made 
thereunder . 
13. Remission of stmu1p ··duty and regis tration iee.-The Government may 
by notification in the offici;:;] Gazett e remi t 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. Retro~ectivc Application o~ t~e Act to prior loans.-(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
visi,ons of this Act shall mutatis mutandis apply to such Joan as they apply to . 
a loan granted under thi s Act. 
!Section 14 renumbered as sub-section (1) and a new sub-section (2) inserted 
by the Assam Displaced Persons (Rehabilitation Loans) (Amendment) 
Act, 1953. ·• 
. S• 
~r 
te 
fY 
~ r 
e 
p-
er 
il'-
te 
tg 
l 
y 
t 
s 
s 
385 
' [:(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 th-is 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 purposces of this Act. 
" (2) In particular, and without prejudice to the generality of the foregoing 
. provisions, such rules may provide for all or any of the following matters, 
namely:-
(a) . the fornis of application for loan , order of the sanctioning authority, 
the ' eend and any oth-er ·instr·ument 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 remission 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 mann er an(! the machin ery fo t' investigations into applications for 
loan s and io.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. 

‹ Prev All Assam acts Next ›