The Gujarat Rural Debtors Relief Act, 1976

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The Gujarat Rural Debtors' Relief Act, 1976
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GOVERNMENT OF GUJARAT

LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT

PRESIDENT'S ACT No. 35 OF 1976

The Gujarat Rural Debtors' Relief
Act, 1976

[As modified upto the 31st August, 2007 ]

The Gujarat Rural Debtors' Relief Act, 1976
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THE GUJARAT RURAL DEBTORS' RELIEF ACT, 1976
( President's Ac No. 35 of 1976)
PREAMBLE

SECTIONS PAGE NO.

1. Short title, extent and commencement.

2. Definitions.

3. Discharge or reduction of debt.

4. Right of debtor to refund of amount paid in excess of twice the principal
before the appointed day.

5. Appointment of debt settlement officers.

6. Duty of debtors and creditors to furnish particulars of debt, etc. to local
authority.

7. Preparation and publication of statement of debts, etc. by local authority.

8. Application by debtor or creditor for inquiry and power of debt settlement
officer to inquire.

9. Payment of debt.

10. Postponement of payment of instalment in case of remissions etc.

11. Bar of Civil Suits and proceedings in Courts.

12. Decision as to status of a debtor or nature of liability, etc.

13. Appeal

14. Prohibition against disposal of pledged property.

15. Power of debt settlement officer to enforce delivery of possession of property
of debtor.

16. Creditor required to pay value of p ledged or mortgaged property in certain
cases.

17. Offences.

18. Powers of debt settlement officers in inquiries.

19. Protection of action takes in good faith.

20. Inquiries and proceedings to be judicial proceedings.

21. Powers of entry, search and seizure.

22. Pleaders, etc. excluded from appearance.

23. Act to override other laws.

24. Declaration that Act gives effect to certain directive principles.

25. Application of Act to debts in kinds.

26. Offences by companies.

27. Exempted debts.

The Gujarat Rural Debtors' Relief Act, 1976
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SECTIONS PAGE NO.

28. Power to make rules.

29. Repeal of Guj. 15 of 1976.

THE SCHEDULE

The Gujarat Rural Debtors' Relief Act, 1976
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President's Act No. 35 of 19761 
[14th August, 1976]

[THE GUJARAT RURAL DEBTORS' RELIEF ACT, 1976]

Enacted by the President in the Twenty-seventh Year of the Republic of India.

An Act to provide for relief from indebtedness to certain farmers, rural artisans
and rural labourers in the State of Gujarat.

In exercise of the powers conferred by section 3 of th e Gujarat State
Legislature (Delegation of Powers) Act, 1976, the President is pleased to enact as
follows:—

1. (1) This Act may be called the Gujarat Rural Debtors' Relief Act, 1976.

(2) It extends to the whole of the State of Gujarat.

(3) It shall come into force on such date as the State Government may, by
notification in the Gujarat Government Gazette, appoint.

2. In this Act, unless the context otherwise requires—

(a) "agriculture" includes horti culture, the raising of crops, grass or garden
produce, the use by an agriculturist of the land held by him or part thereof for
the grazing of his cattle, the use of any land, whether or not an appendage, to
rice or paddy land, for the purpose of rabmanure , dairy farming, poultry
farming, breeding of live stock, and the cutting of wood;

(b) "appointed day" means the date on which this Act comes into force;

(c) ''debt" means any liability (inclusive of interest) which is due from a
debtor in cash or kind, whether secured or unsecured, or whether payable
under a decree or order of any Civil Court or otherwise, and subsisting on and
legally recoverable on or after the appointed day;

(d) "debtor" means a marginal farmer, a small farmer, a rural labourer, or a
rural artisan, who on the appointed day is in debt;

(e) "farmer" means a person who is engaged in agriculture;

(f) "land" means land which is used or capable of being used for the purpose
of agriculture and includes the sites of farm buildings appurtena nt to such
land;

(g) "marginal farmer" means a person,—

(i) who holds land in any of the villages specified in column 3 of the
Schedule not exceeding,—

(a) the extent of land specified against such village in column
4 of the Schedule, if such person doe s not belong to a
Scheduled Tribe;

(b) twice the extent of land so specified, if such person
belongs to a Scheduled Tribe, and

(ii) who earns his livelihood principally by cultivating such land;

Explanation 1.—Where a person holds irrigated land, whether
exclusively or along with other non -irrigated land, the extent of land
deemed to be held by him for the purpose of this clause so far as such
irrigated land held by him is concerned shall be twice the extent of
such irrigated land.

Explanation 2. —Where a person holds land in different
villages against which different extents of land are specified in
44 of 1976.
Short title, extent
and commence-
ment.
Definitions.
The Gujarat Rural Debtors' Relief Act, 1976
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column 4 of the Schedule, the extent of land which he shall be
deemed to hold for the purpose of this clause shall, regard being also
had to the provisions o f Explanation I wherever it is applicable, be
equal to the sum of—

(i) the extent of land held by him in the village in which he
ordinarily resides, and

(ii) such extent of land as bears to the extent of the land held
by him in the village (or each of th e villages, as the case may
be) other than the village in which he ordinarily resides the
same ratio as the extent of the land specified in column 4 of
the Schedule against the village in which he resides bears to
the extent of land specified in the said c olumn 4 against the
village (or each of the villages, as the case may be), in which
he does not reside;

(h) 'member of a family" in relation to a rural artisan, means father, mother,
spouse, brother, unmarried dependent sister, divorced dependent sister, son,
son's wife, un -married daughter, divorced dependent daughter, son's son,
son's son's un-married daughter, son's son's divorced dependent daughter, and
includes any relation residing with, and actually dependent for his
maintenance on, the rural artisan;

(i) "owner" in relation to land, includes a person holding the land as occupant
or landholder as defined in the Bombay Land Revenue Code, 1879, as in
force in the State of Gujarat;

(j) "prescribed" means prescribed by rules made under this Act;

(k) "rural area" means an area which, for the time being, is not within the
limits of—

(i) a city constituted under section 3 of the Bombay Provincial Muni -
cipal Corporations Act, 1949, as in force in the State of Gujarat;

(ii) a municipal borough, or a notified area constituted, or deemed to -
be constituted, under the Gujarat Municipalities Act, 1963;

(iii) a cantonment declared as such under the Cantonments Act, 1924;

(l) ''rural artisan" means a person who, being resident in a rural area, earns his
livelihood principally by practising any craft in such area by his own labour
or by the labour of the members of his family, and

(i) who either does not hold any land, or

(ii) who holds land to the ex tent specified in paragraph (a) or, as the
case may be, paragraph (b), whichever is applicable, of sub -clause (i)
of the clause (g), but who does not earn his livelihood principally by
cultivating such land;

(m) "rural labourer" means a person who, being resident in a rural area, earns
his livelihood principally by manual labour from any of the following
occupations, but does not hold any land for any such occupations, namely :—

(i) farming including cultivation or tillage of soil or horticultural
operations,

(ii) cutting of wood,

(iii) dairy farming,

(iv) poultry farming,

(v) breeding of live stock,

Bom. V of 1879.
Bom. 59 of 1949.
Guj. 34 of 1964.
2 of 1924.
The Gujarat Rural Debtors' Relief Act, 1976
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(vi) any operation performed on a farm as incidental to preparation,
transport, delivery or storage, for marketing of any of the products of
any of the o ccupations mentioned in sub -clauses (i),(ii), (iii), (iv) and
(v);

(n) "Schedule” means the Schedule appended to this Act;

(o) "Scheduled Tribes" means such tribe or tribal community, or part of, or
group within, such tribe or tribal community as is deem ed to be a Scheduled
Tribe in relation to the State of Gujarat under article 342 of the Constitution;

(p) "small farmer" means a person—

(i) who holds land in any of the villages specified in column 3 of the
Schedule not exceeding—

(a) the extent of land specified against such village in column
5 of the Schedule, if such person does not belong to a
Scheduled Tribe;

(b) twice the extent of land so specified, if such person
belongs to a Scheduled Tribe; and

(ii) who earns his livelihood principally by cultivating such land;

Explanation I.—Where a person holds irrigated land, whether
exclusively or along with other non -irrigated land, the extent of land
deemed to be held by him for the purpose of this clause so far as such
irrigated land held by him is co ncerned shall be considered to be
twice the extent of such irrigated land.

Explanation 2. —Where a person holds land in different
villages against which different extents of land are specified in
column 5 of the Schedule, the extent of land which he shall be
deemed to hold for the purpose of this clause shall, regard being also
had to the provisions of Explanation 1 wherever it is appli cable, be
equal to the sum of—

(i) the extent of land held by him in the village in which he
ordinarily resides, and

(ii) such extent of land as bears to the extent of the land held
by him in the village (or each of the villages, as the case may
be) other than the village in which he ordinarily resides the
same ratio as the extent of the land specified in column 5 of
the Schedule against the village in which he resides bears to
the extent of land specified in the said column 5 against the
village ( or each of the villages, as the case may be ) in which
he does not reside;

(q) "to hold land", with its grammatical variations and cognate expres sions,
means to be lawfully in actual possession of land, whether as owner or as
tenant (including a Government lessee) or as crop sharer;

(r) ''village" shall have the meaning assigned to it in the Bombay Land
Revenue Code, 1879, as in force in the State of Gujarat.

3. (1) Save as otherwise expressly provided in this Act and on and from the
appointed day,—
(a) every debt outstanding against a debtor who is a marginal farmer
or rural labour er, or who is a rural artisan whose income does not
exceed rupees 2,400 per year, shall be deemed to be wholly
discharged;

(b) every debt outstanding against a debtor who is a small farmer, or
who is a rural artisan whose income exceeds rupees 2,400 per y ear
but does not exceed rupees 4,800 per year, shall—
Bom. V of 1879
Discharge or
reduction of debt.
The Gujarat Rural Debtors' Relief Act, 1976
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(i) in a case where any amount equal to or exceeding twice the
amount of the principal has already been paid by, or recovered
from, such debtor before the appointed day, be deemed to be
wholly discharged;

(ii) in any other case, be deemed to be reduced to one -half of
the recognised debt:

Provided that the amount which remains to be paid by
the debtor shall not exceed twice the amount of the principal.

Explanation 1.—For the purpose of this sub-section as
well as sub -section (3) of section 8, " income per year " , in
relation to a rural artisan, shall mean the average annual
income of such artisan for the three years immediately
preceding the appointed day.

Explanation 2. — For the purpose of clause (b),
"recognised debt", in relation to any debtor, means the amount
of the principal together with the amount of simple interest
thereon at the rate of six per cent per annum or the rate
stipulated between the parties, whichever is less, calculated as
outstanding on the appointed day, after allowing deductions of
all sums paid from time to time .towards the repayment of the
principal or interest, as the case may be.

(2) Notwithstanding anything contained in the foregoing provisions, in no
case shall a debto r be liable to pay to his creditor or creditors under sub -
clause (ii) of clause (b) of sub-section (1), an amount exceeding rupees 1,400
in the aggregate :

Provided that where the amount payable by the debtor to more than
one creditor is so reduced to rup ees 1,400, the amount payable to each one of
the creditors shall be determined on a pro rata basis, having regard to the
amount or amounts of debts payable to each one of them, subject to the
overall limit of rupees 1,400.

4. (1) Where in respect of any debt, any amount exceeding twice the amount of
the principal has been paid by, or has been recovered from, the debtor before
the appointed day, such debtor s hall be entitled to a refund of the amount so
paid in excess of twice the amount of principal from the creditor and the
creditor shall, within a period of two months from the appointed day, refund
to the debtor the amount so paid in excess by him.

(2) Where a creditor fails to refund, within the period specified in sub- section
(/), to a debtor the amount to which the debtor may be entitled under that sub -
section, the debtor may, on the expiry of such period, make an application in
writing to the debt sett lement officer having jurisdiction at the place where
such debtor ordinarily resides for making an order directing the creditor to
refund to the debtor such amount.

(3) An application under sub-section (2) shall be made in prescribed form and
within prescribed period and shall contain the prescribed particulars.

(4) On receipt of an appliction from a debtor under sub -section (2), the debt
settlement officer shall, after making such inquiry as he thinks fit and after
giving to the creditor concerned an opportunity of being heard, make an order
granting such relief to the debtor as he may appear to be entitled to, or make
an order rejecting the application of the debtor, as the case may be.

(5) The order of the debt settlement officer under this section gra nting refund
of an amount to a debtor shall be executed by the Civil Court having
jurisdiction in the area in which the debtor resides as if such order were a
decree or order of that Court.

Right of debtor to
refund of amount
paid in excess of
twice the principal
before the
appointed day.
The Gujarat Rural Debtors' Relief Act, 1976
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5. The State Government shall, for the purpose of settlement of debts in accordance
with the provisions of this Act, by notification in the Gujarat Govern ment Gazette,
appoint such number of persons, as it thinks fit, as debt settlement officers and define
the local limits of the areas in which they shall exercise their jurisdiction.

6. (1) Every debtor shall, within such period as may be prescribed, furnish to the
local authority within whos e jurisdiction he ordinarily resides, a true state
ment in writing in prescribed form containing the following particulars in
respect of every debt due by him on the appointed day to his creditors,
namely :—
(i) full particulars of the debt;

(ii) the nam e and residence of the creditor and if there are joint
creditors, the names and residences of all joint creditors;

(iii) the place where the debtor resides;

(iv) particulars showing that he is a debtor and also showing whether
he is a marginal farmer, small farmer, rural artisan or rural labourer;

(v) in the case of a debtor who is a rural artisan, the amount of his
income per year;

(vi) such other particulars as may be prescribed.

(2) Any of the creditors of a debtor may also furnish, within the perio d
prescribed under sub -section (1), to the local authority within whose
jurisdiction the debtor, ordinarily resides a true statement in writing in
prescribed form containing the following particulars in respect of the debt or
debts due to him by the debtor, namely :—

(i) full particulars of the debt,

(ii) the name and residence of the debtor,

(iii) the place where the creditor resides,

(iv) particulars showing whether the debtor is a marginal farmer,
small farmer, rural artisan, or rural labourer,

(v) such other particulars as may be prescribed. Explanation 1.—For
the purpose of this section, "local authority" means,—

(a) in the case of a debtor who ordinarily resides within the
jurisdiction of a gram panchayat, nagar panchayat, borough
municipality or a municipal corporation, the gram panchayat,
the nagar panchayat, the borough muni cipality or the
municipal corporation, as the case may be, within whose juris-
diction he resides;

(b) in any other case, such authority as may be prescribed,

Explanation 2.—If a debtor does not ordinarily reside
in any place within the jurisdiction of any local authority but
holds land in any such place, he shall be deemed to reside at
such place.

7. (1) As soon as may be after the expiry of the period prescribed under sub -
section(/)of section 6, the authorised officer of the local authority concerned
shall on the basis of the statements received under section 6, prepare or cause
to be prepared a statement in prescribed form showing therein,—

(i) the names and residences of all debtors and creditors from whom
statements under section 6 have been received;

(ii) the description of the debtor as to whether he is a marginal farmer,
small farmer, rural artisan or rural labourer;
Appointment of
debt settlement
officers.
Duty of debtors and
creditors to furnish
particulars of debt,
etc. to local
authority.
Preparation and
publication of state-
ment of debts, etc.
by local authority.
The Gujarat Rural Debtors' Relief Act, 1976
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(iii) in the case of a debtor who is a rural artisan, the amount of his
income per year;

(iv) the particulars of all debts due by such debtors to their creditors ;
(v) such other particulars as may be prescribed.

(2) As soon as may be after the statement under sub -section (/) is prepared,
the authorised officer of the local authority shall publish it in the prescribed
manner, together with a public notice in the prescribed form calling upon all
debtors and creditors mentio ned in the statement who may have any dispute
to raise against any of the particulars in the statement to make an application
to the debt settlement officer having jurisdiction, within such period after the
date of publication of the statements, as may be prescribed challenging the
correctness of such particulars.

(3) A copy of such statement authenticated by the authorised officer shall be
forwarded to the debt settlement officer appointed under section 5 for the area
under the jurisdiction of the local authority concerned.

Explanation.—In this section, "authorised officer of the local
authority" means;—

(a) in the case of a local authority which is a gram panchayat or a
nagar panchayat, the Secretary of the panchayat;

(b) in the case of a local authori ty which is a borough municipality,
the Chief Officer of the municipality;

(d) in the case of any other local authority such officer as may be
prescribed.

8. (1) Any debtor or creditor who has any dispute to raise against any of the
particulars mentioned in the statement published under sub -section (2) of
section 7 may, within the period specified in the notice published under that
sub-section make an application in writing to the debt settlement officer
having jurisdiction in the area in which the debtor concerned ordinarily
resides, stating the grounds of his dispute against the particulars.

(2) On receipt of an application under sub -section (1), the debt settlement
officer shall serve a notice in such form and in such manner as may be
prescribed upon the other party, requiring him to be present before the debt
settlement officer for the purpose of being heard in connection with such
application on a date specified in the notice and on all subsequent dates to
which the hearing of the application may from time to time be adjourned by
the debt settlement officer.

(3) After having satisfied that the notice under sub -section (2) has been duly
served on the other party, the debt settlement officer shall, after calling for
such further information or particulars in relation to the debt in question, if
necessary, and after making such inquiry and following such procedure,
subject to any rules made in this behalf by the State Government, as in his
opinion, the circumstances of the case seem to require, pass,—

(i) in a case in which he is satisfied that th e debtor is a marginal
farmer or a rural labourer or is a rural artisan whose income does not
exceed rupees 2400 per year, an order discharging the debt
completely and grant to the debtor a certificate of discharge from the
debt in the prescribed form; and on the grant of such certificate to a
debtor in respect of a debt, such debt shall not be recoverable from
such debtor;

(ii) in a case in which the debtor is a small farmer or is a rural artisan
Application by
debtor or creditor
for inquiry and
power of debt
settlement officer to
inquire.
The Gujarat Rural Debtors' Relief Act, 1976
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whose income exceeds rupees 2,400, per year, but does not e xceed
rupees 4,800 per year, an order—

(a) discharging the debt completely if any amount equal to or
exceeding twice the amount of the principal has already been
paid by, or recovered from, such debtor before the appointed
day and grant to the debtor a ce rtificate of discharge from the
debt in the prescribed form, and on the grant of such
certificate to such debtor in respect of a debt, such debt shall
not be recoverable from him;

(b) determining, in a case not falling under sub -clause (a), the
amount of the recognised debt as defined in Explanation 2 to
sub-section (/) of section 3, and reducing the debt in
accordance with the provisions of sub -clause (ii) of clause (b)
of sub -section (1), and sub -section (2), of section 3 and the
amount to which such deb t is reduced shall there upon be the
amount due from the debtor in respect of the debt or debts due
from the debtor and the portion of the debt or debts in excess
of such amount shall be deemed to have been discharged.

(4) If no application under sub -section (/) is received by the debt settlement
officer from any debtor or creditor within the period referred to in sub-section
(1), the debt settlement officer shall, on the basis of the particulars shown in
the statement prepared and published under section 7, and, if necessary, after
making such inquiry as he deems fit, pass an order under clause (i) or under
clause (ii), of sub-section (3), as the facts and nature of the case may require;
and on the passing of such order the consequences mentioned in clause (i), or,
as the case may be, clause (ii) of sub-section (3) shall follow.

(5) Any order made by a debt settlement officer under this section shall, sub
ject to the decision in appeal, if any, under section 13, be final and shall not
be called in question in any court.

9. (1) The amount of debt as reduced under sub -clause (b) of clause (ii) of sub -
section (3) of section 8 in the case of any debtor shall be paid by the debtor to
the creditor, without any interest, in ten equal annual instalments :

Provided that the first instalment shall be payable on such date as the
debt settlement officer may specify in the order passed under sub -clause (b)
of clause (ii) of sub-section (3) of section 8.

(2) Subject to the provisions of sub -section ( /), the order of the debt settle -
ment officer passed under sub -clause (b) of clause (ii) of sub -section (3) of
section 8 shall be executed by the Civil Court having jurisdiction in the area
in which the debtor resides as if it were a decree or order of that Court.

10. (1) Whenever for any cause the payment of one -half or more of the land
revenue payable to the State Government is suspended or remitted, the pay
ment of the whole of the inst alment due for that year and the full amount of
the instalment due for each subsequent year under section 9, shall be
postponed for one year.

(2) Whenever for any cause the payment of any portion less than one half of
the land revenue payable to the State Government is suspended or remitted,
one-half of the amount of the instalment for that year and full amount of the
instalment due for each subsequent year under section 9 shall be postponed
for one year.

11. (1) No Civil or Revenue Court shall entertain—

(a) any suit, appeal, or application for revision—

(i) to recover any debt to which the provisions of this Act
apply; (ii) to question the validity of any procedure or the
legality of any order made by a deb t settlement officer or an
Payment of debt.
Postponement of
payment of
instalment in case
of remissions, etc.
Bar of civil suits
and proceedings in
courts.
The Gujarat Rural Debtors' Relief Act, 1976
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Appellate Officer under this Act;

(b) any application to execute a decree passed by a Civil Court against
a debtor.

(2) Any suit, appeal, application for revision against a decree or application to
execute a decree pending befo re any such Court on the appointed day shall
abate ;

Provided that if any such suit, appeal or application is pending jointly
against such debtor and any other person who is not a debtor, nothing in sub -
section (2) shall affect the continuance of such suit or application or appeal or
revision application in so far as it relates to such other person.

(3) On the appointed day, every debtor undergoing detention in a civil prison
in execution of any decree passed by a Civil Court in respect of his debt, shall
be released.

12. If a question arises in any proceeding under this Act as to—

(a) whether a person is a debtor;

(b) whether a debtor is a marginal farmer, small farmer, rural artisan, or ru ral
labourer;

(c) whether the income of a rural artisan exceeds or does not exceed rupees
2,400 per year or as the case may be, rupees 4,800 per year;

(d) whether any liability is a debt or not;

the debt settlement officer shall decide such question and his decision shall be
final and shall not be called in question in any Court.

13. (1) An appeal against the decision or order of a debt settlement officer in any
local area, may be made in such manner and within such period and on
payment of such fee as may be prescribed, to the Appellate Officer appointed
by the State Government for the purpose of hearing appeals under this Act in
such local area.

(2) The Appellate Officer may, after following such procedure as may be
prescribed and after giving the parties an opportunity of being heard, either
confirm or modify the decision or order made by the debt settlement officer
or direct the debt settlement officer to take such action as the Appellate
Officer thinks fit.

(3) An order passed in appeal by an Appellate Officer under this section shall
be final.

14. (1) No creditor shall, after the appointed day, damage, destroy or tamper with
any property pledged or mortgaged with him by a debtor or any docu ment
connected therewith, or part with, or deal with, the same except as provided
in sub-section (2).

(2) Where a certificate of discharge of any debt is granted to a debtor or an
order reducing his debt is made under section 8, every property pledged or
mortgaged by such debtor as a security for such debt shall stand released in
favour of such debtor and the creditor shall forthwith return such property to
the debtor.

15. (1) Where the creditor fails to return the property to the debtor as required by
sub-section (2) of section 14 and the debtor is opposed or impeded in taking
possession of the property, the debtor may apply to the debt settlement officer
having jurisdiction in the area in which such property is situated or held and
on receipt of such application from a debtor, the debt settlement officer shall,
if he is satisfied that the applicant is entitled to obtain delivery of possession
of the property in question, take, or cause to be taken, such steps for securing
the delivery of possession of the property to the debtor, and may, for such
Decision as to
status of a debtor of
nature or liability,
etc.
Appeal.
Prohibition against
disposal of pledged
property.
Power of debt
settlement officer to
enforce delivery of
possession of
property of debtor.
The Gujarat Rural Debtors' Relief Act, 1976
12 of 45
purpose, take such assistance as he considers necessary, or use, or cause to be
used, such force as may be considered reasonably necessary.

(2) Action under sub-section (1) shall be without prejudice to any punishment
to which the creditor may be liable under section 17.

16. (1) If the possession of the property pledged or mortgaged by a debtor cannot
for any reason be delivered to him, the creditor shall pay to the debtor such
value of the property, as the debt settlement officer may fix.

(2) The debt settlement officer may, on fixing the value of any property under
sub-section (1), grant to the debtor a certificate for the recovery of the amount
stated therein to be due as arrears.

(3) If the creditor fails to pay such value to the debtor, it shall be recover able
from him as an arrear of l and revenue, and on recovery thereof, it shall be
paid to the debtor.

(4) For the purpose of such recovery under sub -section (3), the certificate
granted to the debtor under sub-section (2) shall be final and conclusive proof
of the arrears stated to be due therein.

17. Whoever,—
(a) intentionally makes any false statement or supplies false information or
particulars to a local authority, debt settlement officer or an Appellate Officer
in any proceeding under this Act, or

(b) intentionally prod uces before a debt settlement officer or an Appellate
Officer any false document, or

(c) being a creditor, knowingly takes recourse, for the purpose of recover ing
a debt from his debtor, to a procedure in contravention of the provisions of
this Act, or

(d) contravenes the provisions of section 14, or

(e) abets any of the acts as aforesaid,

shall, on conviction, be liable to be punished with imprisonment for a term which
may extend to one year or to a fine which may extend to one thousand rupees or wit h
both.

18. In making inquiries under this Act, a debt settlement officer shall have the same
powers as are vested in courts in respect of the following matters under Code of Civil
Procedure, 1908, in trying a suit, namely :—

(a) proof of facts by affidavits;

(b) summoning and enforcing the attendance of any person and examining
him on oath ;

19. No suit, prosecution or other legal proceeding shall lie against any debt settlement
officer, Appellate Officer or any other officer or employee of the State Government
or of a local authority, for anything which is in good faith done, or intended to be
done, in pursuance of this Act or rules made thereunder.

20. All inquiries and proceedings before a deb t settlement officer and Appel -late
Officer shall be deemed to be judi cial proceedings within the meaning of sections
193, 210 and 228 of the Indian Penal Code.

21. (1) For enforcing the provisions of this Act, a debt settlement officer may
enter and search any place without any warrant where such officer has reason
to believe that any document evidencing transactions relating to a loan given
to any debtor is kept or concealed, and may seize such documents and detain
the same in his custody for such period as he thinks fit.
Creditor required to
pay value of
pledged or
mortgaged property
in certain cases.
Offences.
Powers of debt
settlement officers
in inquiries.
5 of 1908.
Protection of action
taken in good faith.
Inquiries and
proceed.ings to be
judicial
proceedings.
45 of 1860.
Powers of entry,
search and seizure.
The Gujarat Rural Debtors' Relief Act, 1976
13 of 45

(2) Except as provided in sub -section (7), the other provisions of the Code of
Criminal Procedure, 1973, shall, so far as may be applicable, apply to such
search or seizure as they apply to any search or seizure made under the
provisions of the said Code.

22. In any proceeding under this Act, any party may be represented by an agent
authorised in writing or, with the permission of the debt settlement officer, or as the
case may be, the Appellate Officer, by a legal practitioner.

23. The provisions of this Act shall have effect notwithstanding anything contained in
any other law for the time being in force, or in any contract, or instrument having
force by virtue of any such law and notwit hstanding any custom or usage to the
contrary.

24. It is hereby declared that the provisions of this Act are for giving effect to the
policy of the State towards securing the principles sp ecified in article 46 of the
Constitution.

25. (1) Where any difficulty arises in applying the provisions of this Act relating
to settlement of debts to a debt in kind, such provisions may be applied to
such debt after converting the debt in terms of its market value on the
appointed day.

(2) The decision of the debt settlement officer as to the market value of a debt
for the purpose of sub -section (/) shall be final and shall not be called in
question in any court.

26. (1) Where an offence under this Act has been committed by a company, every
person who, at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of the business of the company as
well as the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub -section shall render any
such person liable to any punishment provided in this Act if he proves that the
offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub -section (7), where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or
other officer of the com pany, such director, manager, secr etary or other
officer of the company shall also be deemed to be guilty of that offence and
shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means any body corporate and includes a firm or other
association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

27. Nothing in this Act shall affect the debts and other liabilities of any debtor falling
under any of the following matters, namely :—

(a) debts due to any Government, including amount due by way of tax, cess
or fee;

(b) debts due to any local authority including amount due by way of tax, cess
or fee ;

(c) debts due to any co-operative society registered or deemed to be registered
under the Gujarat Co-operative Societies Act, 1961 ;

(d) debts due to the Life Insurance Corporation of India;
2 of 1974.
Pleaders, etc.,
excluded from
appearance.
Act to override
other laws.
Declaration that Act
gives effect to
certain directive
principles.
Application of Act
to debts in kind.
Offences by
companies.
Exempted debts.
Guj. X of 1962.
The Gujarat Rural Debtors' Relief Act, 1976
14 of 45

(e) debts due to—

(i) a banking company as defined in the Banking Regulation Act,
1949;

(ii) the State Bank of India constituted under the State Bank of India
Act, 1955;

(iii) a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959;

(iv) a corresponding new Bank constituted under the Bankin g
Companies (Acquisition and Transfer of Undertakings) Act, 1970;

(v) the Agricultural Refinance and Development Corporation
constituted under the Agricultural Refinance and Development
Corporation Act, 1963; and

(vi) any other banking, finan cial or other institution which the State
Government may, by notification in the Official Gazette, specify in
this behalf;

(f) any sum recoverable by way of arrears of land revenue;

(g) any rent or compensation due from a debtor in respect of any property;

(h) any sum due from a debtor—

(i) by way of price for goods, essential for the maintenance of the
debtor and his wife, children and any other dependent residing with
him, and

(ii) by way of charges for supply of electricity, water or such other
essential services;

(i) any liability in respect of wages or remuneration due as salary or otherwise
for services rendered;

(j) any liability in respect of maintenance whether under a decree of a Court
or otherwise;

(k) any amount due under a hire-purchase agreement.

28. (1) The State Government may, by notification in Gujarat Government
Gazette, make rules for carrying out the purposes 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 matters, namely
:—

(a) the form in which, and the period within which, an application
may be made under sub -section (3) of section 4 and the particulars
which such application shall contain;

(b) the per iod within which, and the form in which, a debtor may
furnish the statement under sub-section (1) of section 6 ;

(c) the particulars to be prescribed for the purposes of clause (vi) of
sub- section (1) and clause (v) of sub-section (2) of section 6;

(d) the form in which a creditor shall furnish the statement under sub -
section (2) of section 6;

(e) the particulars to be prescribed for the purpose of clause (v) of
sub- section (/) of section 7;

(f) the manner and the form in which statement is to be p ublished
10 of 1949.
23 of 1955.
38 of 1959.
5 of 1970
10 of 1963.
Power to make
rules.
The Gujarat Rural Debtors' Relief Act, 1976
15 of 45
together with a public notice and period within which application
shall be made under sub-section (2) of section 7;

(g) the form and manner in which notice under sub -section (2) of
section 8 shall be served upon a debtor or a creditor;

(h) the i nquiry to be made and the procedure to be followed under
subsection (3) of section 8;

(i) the form in which a certificate of discharge shall be granted by the
debt settlement officer under clause (i) and sub -clause (a) of clause
(ii) of subsection (3) of section 8;

(j) the manner in which, the time within which and the fee on
payment of which, an appeal shall be made under sub -section (1) of
section 13;

(k) the procedure to be followed by an Appellate Officer under sub -
section (2) of section 13;

(l) any other matter which is to be, or may be, prescribed under this
Act.

(3) The power to make rules conferred by this section shall be subject to the
condition of the rules being made after previous publication.

2[(4) All rules made under t his section shall be laid for not less than thirty
days before the State Legislature as soon as may be after they are made and
shall be subject to rescission by the State Legislature or to such modification
as the State Legislature may make during the sess ion in which they are so
laid, or the session immediately following.

(5) Any rescission or modification so made by the State Legislature Shall be
published in the Official Gazette, and shall thereupon take effect.]

29. The Gujarat Rural Debtors' (Temporary Relief) Act, 1976 is hereby repealed and
the provisions of section 7 of the Bombay General Clauses Act, 1904 shall apply to
such repeal, as if this Act were a Gujarat Act.

Bom. 1 of 1904.
Repeal of Guj. 15
of 1976.
Guj. 15 of 1970.
The Gujarat Rural Debtors' Relief Act, 1976
16 of 45
THE SCHEDULE
[ See Section 2 (g) and (p) ]

District in 3[Taluka or Mahal in Name of the Village Extent of Extentof
which village which village land (for land( for
is situated is situated] marginal Small
farmers) Farmers
(In Hectares) (In Hectares)
1 2 3 4 5

Banaskantha Kankrej l. Sihorj, 2. Ratanpura, 3. Amblivas, 1.32 2.63
4. Kunvarva, 5. Manpur, 6. Dugrasan,
7. Umbri, 8. Golia, 9. Ranawada,
10. Bukoli, 11. Arni-wada, 12. Uchrpi,
13. Kamboi, 14. Laxmipura, 15. Jalia,
16. Fate-gadh, 17. Raner, 18. Jamnapadar,
19. Dudasan, 20. Khimana, 21. Chekhla,
22. Khoda, 23. Khodla, 24. Samahra,
25. Rampura, 26. Raviana, 27. Ratangadh,
28. Chimangadh, 29. Zalmore, 30, Padardi
31.Khasa, 32. Nanota, 33. Akoli M. Vas,
34. Akoli T. Vas, 35.Vada, 36. Indramana,
37. Balochpur, 38. Mangalpura,
39. Nana Jampur, 40. Thara Sadujivas,
41. Bhavnagar, 42. Thara, 43. Taana,
44. Maid-Kol, 45. Bhalgam, 46. Ranakpur,
47. Runi, 48. Khengarpura, 49, Kharia,
50. Nava, 51. Shiya, 52, Anandpura,
53. Changa, 54, Mekaria 55. Padar,
56. Savpura, 57. Un, 58. Amarpura,
59.Ratanpura, 60.Val-pura, 61. Tatiana,
62, Karasanpura, 63. Manpura,
64. Bhadrewadi.

Kankrej All other villages 1.52 3.03

Deesa 1. New Deesa, 2. Juna Deesa, 3. Sherganj, 1.32 2.63
4. Vadi Farm, 5. Tekra, 6. Kant,
7. Khardosan, 8. Aseda, 9. Dhapada,
10. Fatepura, 11. Bhildi, 12. Paldi,
13. Ramvas, 14. Soyala, 15. Sondiya,
16. Khetwa, 17. Ratanpura, 18. Sanath,
19. Balodhar, 20. Taleganj, 21. Dedol,
22. Garnal Mod, 23. Garnal Chhoti,
24. Vadaval, 25. Lorwada, 26. Bodal,
27. Malgadh, 28. Kuput, 29. Ranpur,
Ugmanavas, 30, Ranpur Vachalavas
31. Ranpur Athamnavas, 32. Rajpur,
33. Bhoyan, 34. Nava, 35. Vasda,
36. Rasana Nana, 37. Rasana Mota,
38. Nesda Juna, 39. Nesda Nava,
40. Mudetha, 41. Chhatrala,
42. Zabadia, 43. Samau Nanavas,
44. Samau Motavas, 45. Dharisana,
46. Saviana, 47. Vela-vapura,
48. Lumpur, 49. Dhadramali, 50. Sadarpur,
51. Manekpura, 52. Dasanavas,
53. Vasana, 54. Vahra, 55. Viruwada,
56. Yavarganj, 57. Latia, 58. Kanzara,
59. Sotambla.

All other villages 1.52 3.03

Palanpur 1. Gadh, 2. Madana (Gadh), 3. Talepura, 1.32 2.63
4. Delwada, 5. Sala, 6. Patosan,
7. Khasa, 8. Saripada, 9. Tokaria,
10. Hoda, 11. Badarpura (K),
12. Bhagal, 13. Vasana, 14. Sagrosana,
15. Salimpura, 16. Bhavisana, 17. Gathaman,
18. Asbipura, 19. Jagana, 20. Akesa,
21. Khumbhalmer, 22. Mota, 23. Chandisar,
24. Chadotar, 25. Sasam, 26. Usnapura,
27. Kanodar, 28. Takarwada, 29. Khodla,
30 Vedancha, 31. Kumbhasan
The Gujarat Rural Debtors' Relief Act, 1976
17 of 45
District in Taluka or Mahal in Name of the Village Extent of Extentof
which village which village land (for land( for
is situated is situated marginal Small
farmers) Farmers
(In Hectares) (In Hectares)
1 2 3 4 5

24. Chadotar, 25. Sasam, 26. Usnapura,
27. Kanodar, 28. Takarwada, 29. Khodla,
30 Vedancha, 31. Kumbhasan
32. Vasni, 33. Samadhi, Ranajiwas,
34. Samadhi Motwas,
35. Samadhi Nanshaniwas, 36. Sundha,
37. Galwada, 38. Titiwada, 39. Kemili,
40. Badarpur ( Khodla).

1. Iqbalgadh, 2. Umarkpt, 3. Jathi, 1.72 3.44
4. Zanarva, 5. Mandalia, 6. Rabaran,
7. Khajuris, 8. Beri, 9. Ambapani, 10. Ajapur,
(Venka), 11. Khara, 12. Bantawada,
13. Ajiapur Mota, 14. Avala, 15. Rampura
(Karja), 16. Karza, 17. Juvol, 18. Manpuria,
19. Balundra, 20. Ghanta, ,21. Sarotra,
22. Kidotar, 23. Kakwada, 24. Iswani,
25. Savania, 26. Khari, 27. Zaba,
28. Dabhela, 29. Gadhada, 30. Rabaria,
31. Aval, 32. Kapasia, 33. Kali Mati,
34. Dholia, 35. Ghanghu, 36. Laxmipura,
37. Khunia, 38. Dhanpura, 39. Jorapura,
40. Amirgadh, 41. Dungarpura,
42. Bhandh, Uplo, 43. Bhandh Nichlo,
44. Karamdi, 45. Khapa, 46. Rajpuria,
47. Sarotri Juni, 48. Bhamaria, 49. Khemrajia,
50. Surola, 51. Dabheli, 52. Varampur,
53. Ranpuria, 54. Hathidara, 55. Godh,
56. Kumper, 57. Rampura, Vadla,
58. Vera, 59. Soanwadi, 60. Vaghnor,
61. Rohjuni.

Palaupur All other Villages 1.52 3.03

Vadgam All Villages

Excerpt shown. Open the full act in Lexace.

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