The Gujarat Public Moneys (Recovery of Dues) Act, 1979

The Gujarat Public Moneys (Recovery of Dues) Act, 1979 
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                                                GOVERNMENT OF GUJARAT 
 
 
 
 
 
 
 
 
 
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT 
 
 
 
 
 
 
 
 
 
Gujarat Act No. 17 of 1979 
 
 
 
 
 
 
 
 
 
 
The Gujarat Public Moneys (Recovery of 
Dues) Act, 1979 
 
 
 
 
 
 
 
 
 
 
 
 
( As modified upto the 30th June  2007) 
 
The Gujarat Public Moneys (Recovery of Dues) Act, 1979 
1979 : Guj .17 ] 
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THE GUJARAT PUBLIC MONEYS (RECOVERY OF DUES) ACT, 1979 
 
CONTENTS. 
PREAMBLE. 
 
SECTIONS.        PAGE No. 
 
1. Short title, extent and commencement. 
 
2. Definitions. 
 
3. Recovery of certain dues as arrears of land revenue. 
 
4. Savings. 
 
5. Act not to debar recovery of dues by banks under any other law. 
 
6. Power of State Government to make rules.  
 
7. Transitory provision.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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GUJARAT ACT No. 17 of 1979 1  
 
[ THE GUJARAT PUBLIC MONEYS (RECOVERY OF DUES) ACT, 1979. ] 
(28th May, 1979.) 
 
Amended by Guj. 21 of 1981.  
Amended by Guj. 4 of 1985.  
 
An Act to provide for the speedy recovery of certain classes of dues payable 
to the State Government, the State Financial Corporation and Other 
Corporations owned or controlled by the State Government, 
Government Companies and nationalised or other banks. 
 
It is hereby enacted in the Thirtieth Year of the Republic of Indian as 
follows:- 
 
1. (1) This Act may b e called the Gujarat Public Moneys (Recovery of Dues) 
Act, 1979. 
 
(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 Official Gazette, appoint. 
 
2. In this Act, unless the context otherwise requires,- 
 
(a) "agriculture" includes horticulture, raising of crops, grass or garden 
produce, animal husbandry, dairy farming, poultry farming and breeding of 
livestock ; 
 
2[(ab) "Collector" includes an officer appointed by the State Government to 
perform the functions and exercise the powers of the collector under this 
Act;] 
 
 (b) "Corporation" means the Gujarat State Financial Corporation established 
under the State Financial Corporations Act, 1951 and includes any other 
Corporation owned or controlled by the Central or State Government 
specified by the State Government, by a notification in the Official Gazette. 
 
 (c) "bank" means- 
 
(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) subsidiary bank as defined in the State Bank of India (Subsidiary 
Banks) Act, 1959 ; 
  
 (iv) a corresponding new bank constituted under the Banking 
Companies (Acquisition and Transfer of Undertakings) Act, 1970 ; 
 
 (v) any banking institution notified by the Central Government under 
section 51 of the Banking Regulation Act, 1949 ; 
 
(vi) any other financial institution notified by the State Government 
by a notification in the Official Gazette, as a bank for the purposes o f 
this Act; 
 
(d) "financial assistance" means any kind of financial assistance given- 
Short title, 
extent and 
commencement. 
Definitions. 
LXIII of 1951. 
X of 1949. 
XXIII of 1955. 
XXX-VIII of 1959. 
V of 1970. 
X of 1949. 
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(i) for establishing, expanding, modernising, renovating or running 
any industrial undertaking ; or 
 
(ii) for the purpose of vocational training ; or 
 
(iii) for the development of agriculture or agro-industry ; or 
 
(iv) for purposes of any other kind of planned development 
recognised by the State Government ; or 
 
(v) for relief against distress caused by fire or serious drought, flood 
or other natural calamities ; or 
 
(vi) for the purpose of carrying out any State sponsored scheme ; 
 
(vii) for any other prescribed purpose ; 
 
 (e) "Government Company" means Government Company as defined in 
section 617 of the Companies Act, 1956 ; 
 
 (f) "indust rial concern" shall have the same meaning as is assigned to that 
expression in the State Financial Corporations Act, 1951 as in force for the 
time being ; 
 
(g) "industrial undertaking" includes any undertaking for the manufacture, 
preservation, storage or processing of goods, or mining or the hotel industry, 
or the transport of passengers or goods, or the generation or distribution of 
electricity or any other form of energy, or for the development of any 
contiguous area of land as an industrial estate. 
 
Explanation.-The expression "processing of goods" includes any art 
or process for producing, preparing or making an article by subjecting any 
material to a mannual, chemical, electrical or any other like operation ; 
 
(k) "prescribed" means prescribed by rules made under this Act; 
 
(l) "State-sponsored scheme" means a scheme sponsored or adopted by the 
State Government or an officer authorised by it in this behalf for development 
of agriculture or industry and notified as such by the State Government or the 
authorised Officer, by a notification in the Official Gazette for the purposes of 
this Act. 
 
3. (1) Where any person is a party- 
 
(a) to any agreement relating to a loan, advance or grant given to him 
or re lating to credit in respect of, or relating to hire -purchase of, 
goods sold to him 3[by the State Government, the Corporation or, as 
the case may be, the Government Company] by way of financial 
assistance, or 
 
(b) to any agreement relating to a loan, advance or grant given to him 
of relating to credit in respect of, or relating to hire -purchase of goods 
sold to him by a bank or a "Government Company, as the case may 
be, under a State sponsored scheme ; or 
 
(c) to any agreement relating to a guarantee given by the State 
Government or the Corporation in respect of a loan raised by an 
industrial concern, or 
 
(d) to any agreement providing that any money payable thereunder to 
I of 1956. 
LXIII of 1951. 
Recovery of certain 
dues as arrears of 
land revenue. 
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the State Government or the Corporation shall be recoverable as 
arrears of land revenue ; 
 
and such person- 
 
(i) makes any default in payment of the loan or advance of 
any instalment thereof; or 
 
(ii) having become, liable under the conditions of the grant to 
refund the grant or any portion thereof, makes any default in 
the refund or such grant or portion or any inst alment thereof, 
or 
 
(iii) otherwise fails to comply with the terms of the 
agreement- 
 
then, in the case of the State Government, such officer as may 
be authorised in that behalf by the State Government by 
notification in the Official Gazette, in the case o f a 
corporation or a Government Company, the Managing 
Director thereof or where there is no Managing Director, the 
Chairman thereof, by whatever name called, and in the case of 
a bank, the local agent thereof, by whatever name called, may 
send to the Colle ctor a certificate as early as possible in the 
prescribed form mentioning the sum due from such person 
and requesting that such sum may be recovered as if it were 
an arrear of land revenue. 
 
(2) The Collector on receiving the certificate shall after making such inquiries 
(including giving hearing to the party affected) as he deems fit proceed to 
recover the amount stated therein as aforesaid as arrears of land revenue. 
 
(3) On recovery of any amount under sub -section (2), the same shall be paid 
over to the State Government, Corporation, Government Company, or as the 
case may be, bank after deducting, except in the case of amount to be paid to 
the State Government, such portion of the amount realised, as cost of 
collection ; as the Collector may deem to be reasonable. 
 
(4) No suit for the recovery of any such due as aforesaid shall lie in a civil 
court against any person referred to in sub-section (1), and no injunction shall 
be granted by a civil court in respect of any action taken or intended to be 
taken in pursuance of the right conferred by this section. 
 
4. (1) Nothing in section 3 shall,- 
 
(a) affect any interest of the State Government, the Corporation, a 
Government Company or any bank in any property, created by any 
mortgage charge, pledge or other encumbrance ; or 
 
(b) bar a suit or affect any other right or remedy against any person 
other than a person referred to in that section, in respect of a contract 
of indemnity or guarantee entered into in relation to an agreement 
referred to in that s ection or in respect of any interest referred to in 
clause (a). 
 
(2) Where the property of any person referred to in section 3 is subject to any 
mortgage, charge, pledge or other encumbrance in favour of the State 
Government, a Corporation, a Government Company or a bank then ; 
 
(a) in every case of a pledge of goods, proceedings shall first be taken 
for sale of the goods pledged, and if the proceeds of such sale are less 
Savings. 
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than the sum due, then proceedings shall be taken fo r recovery of the 
balance as if it were an arrear of land revenue : 
 
Provided that where the collector is of opinion that it is 
necessary so to do for safeguarding the recovery of the sum due to the 
State Government, Corporation, Government Company or bank , as 
the case may be, he may, for reasons to be recorded, direct 
proceedings to be taken for recovery of the sum due as if it were an 
arrear of land revenue before or at the same time the proceedings are 
taken for sale of the goods pledged ; 
 
(b) in every case of a mortgage, charge or other encumbrance on 
immovable property, such property or, as the case may be, the interest 
of the defaulter therein, shall first be sold in proceedings for recovery 
of the sum due from that person as if it were an arrear of l and 
revenue, and any other proceedings may be taken thereafter only if 
the Collector certifies that there is no prospect of realisation of the 
entire sum due through the first mentioned process within reasonable 
time. 
 
5. Subject to the provisions of sub -section (3) of section 3 nothing in this Act shall 
debar the recovery of due in repect of financial assistance given by a bank to an 
agriculturists or the security of a charge or mortgage crea ted by the agriculturists on 
any land or interest therein favour of the bank, where such dues are recoverable by 
the bank under the provisions of any other law for the time being in force. 
 
6. (1) The State Governm ent may, by notification in the Official Gazette, and 
subject to the condition of previous publication, make rules for the purpose of 
carrying out the provisions of this Act. 
 
(2) In particular and without prejudice to the generality of the foregoing 
powers such rules may be made for all or any of the following matters, 
namely :- 
 
(a) any other purpose to be prescribed under sub -caluse (vii) of clause 
(d) of section 2 ; 
 
(b) the form of certificate to be sent under sub -section (1) of section 
3; 
 
(c) any other matter which is to be or may be prescribed. 
 
(3) All rules made under this 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 session in which they are so laid or the 
session immediately following. 
 
(4) Any rescission or modification so made by the State Legislature shall be 
published in the Official Gazette, and shall thereupon take effect. 
 
7. 4[(1)]. All suits of the nature referred to in sub -section (4) of sec tion 3 
pending in any Civil Court immediately before the commencement of this Act 
shall abate upon such commencement so however that such abatement shall 
be without prejudice to the right of the State Government, Corporation. 
Government Company or bank, as  the case may be, recover any sum which 
may be the subject matter of such suit in accordance with the provisions of 
this Act, or any other law for the time being in force. 
 
4[(2) All suits for the recovery of any sum due, to which this Act  applies by 
virtue of amendment in clause (a) of sub -section (1) of section 3 by section 2 
Act not to debar 
recovery of dues 
by banks under 
any other law. 
Power of State 
Government to 
make rules. 
Transitory provision. 
Guj. 21 of 1981. 
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of the Gujarat Public Moneys (Recovery of Dues) (Amendment) Act, 1981 
pending in any Civil Court immediately before the commencement of the said 
Act shall abate upon  such commencement so however that such abatement 
shall be without prejudice to the right of a Government Company to recover 
any sum which may be the subject matter of such suit in accordance with the 
provisions of this Act or any other law for the time being in force. ] 
 
 
 
 
 
 
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1 For Statement of Objects and Reasons see Gujarat Government Gazette. Extraordinary Part V, 
dated the 20th March, 1979, Page 225. 
 This Act was asserted to by the President on the 18th May, 1979. 
 For validating provision see section 3 of Guj. 4 of 1985. 
2 Clause (ab) was inserted by Guj. 4 of 1985. s. 2. 
3 These words were substituted and shall be deemed always to have been substituted for the words 
"by the State Government or the Corporation" by Guj. 21 of 1981, s. 2. 
4 Section 7 was renumbered as sub-section (1) of that section and sub-section (2) was added by 
Guj. 21 of 1981, s. 3. 

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