LexThe Himachal Pradesh Backward Classes (Grant of Loans) Act, 1969
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH BACKWARD CLASSES (GRANT OF
LOANS) ACT, 1969
ARRANGEMENT OF SECTIONS
Sections:
1. Short title, extent and commencement.
2. Definitions.
3. Limit of loan.
4. Procedure for sanctioning loans.
5. Security for repayment of loans.
6. Loan how repayable.
7. Inspection and supply of information.
8. Consequence of failure by borrower to comply with p rovisions of
section 7.
9. Appeal.
10. Mode of recovery.
11. Finality of decision of Government.
12. Legal proceedings.
13. Power to make rules.
14. Repeal and savings.
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THE HIMACHAL PRADESH BACKWARD CLASSES (GRANT OF
LOANS) ACT, 1969
(ACT NO. 6 OF 1970)1
(Received the assent of the President of India on t he 28 th January,
1970, and was published in R.H.P. Extra., dated the 4 th April, 1970 at p.
294-297.)
An Act to provide for the extension of loan facilit ies to persons belonging
to Backward Classes in the [State]
2 of Himachal Pradesh.
Amended, repealed or otherwise affected by ,---
A.O. 1973, published in R.H.P. Extra., dated the 20 th January,
1973 at p. 91-112.
1. For Statement of Objects and Reasons, see R.H.P. Extra., dated 19.9.1969, p.
850. For its Authoritative Hindi Text, see R.P.H. Extra., dated 22.11.1986, p.
2051-2055.
2. Subs for "Union territory" by A. O. 1973.
H. P. BACKWARD CLASSES (GRANT OF LOANS) ACT, 1969 2
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Twentieth Year of the Republic of India as follows :-
1. Short title, extent and commencement .- (i) This Act may be
called the Himachal Pradesh Backward Classes (Grant of Loans) Act, 1969.
(ii) It extends to the whole of the [State] 1 of Himachal Pradesh.
(iii) It shall come into force at once.
2. Definitions .- In this Act, unless the context otherwise requires,-
(a) "backward classes" means the Scheduled Castes and the
Scheduled Tribes declared as such in relation to th e [State] 2 of
Himachal Pradesh under articles 341 and 342 respect ively of
the Constitution and includes all persons each of w hose annual
gross income calculated in the prescribed manner do es not
exceed two thousand rupees;
(b) "borrower" means an individual belonging to a Backward Class
to whom a loan has been granted under this Act;
(c) "controlling authority" means the authority 3 appointed by the
Government by notification in the Official Gazette to be
competent to sanction a loan under the powers confe rred by the
Act and to take such steps as are necessary for the enforcement
of the provisions of this Act;
4[(d) xxxxxxxx]
(e) "loan" means interest free loan granted by the Government
under this Act; and
(f) "prescribed" means prescribed by rules made un der this Act.
3. Limit of loan .- The amount of loan which may be granted to an
individual under this Act shall not exceed two thousand rupees.
4. Procedure for sanctioning loans .-- (1) Any person belonging to
a backward class may submit to the controlling auth ority an application in the
prescribed form, supported by an affidavit, stating the amount of loan desired
by him, the purpose or purposes for which it is des ired and the manner in
which the repayment of the loan, if granted to him, is proposed to be made.
(2) The controlling authority if satisfied that the applicant is a person
belonging to a backward class, may sanction the loa n to the extent of the
amount stated in the application or any lesser amou nt, subject to a maximum
1. Subs for "Union territory" by A. O. 1973.
2. Subs for "Union territory" by A. O. 1973.
3. Director of welfare Deptt. appointed as "Contro lling Authority" vide Not. No.
5-5/71-LW (Wel), dated 21-9-1971, published in R.H.P. dated 2.10.1971, p. 996.
4. The definition of "Government" omitted by A. O. 1973.
H. P. BACKWARD CLASSES (GRANT OF LOANS) ACT, 1969 3
of two thousand rupees in each case.
5. Security for repayment of loans .- (1) When a loan is sanctioned
under sub-section (2) of section 4, the applicant s hall execute a bond in the
prescribed form,-
(a) undertaking to apply the amount of the loan to the purpose or
purposes for which it has been sanctioned;
(b) undertaking to fulfil the conditions on which the loan has been
sanctioned; and
(c) agreeing that the amount of the loan shall be recoverable in the
prescribed manner if it is not used for such purpos e or purposes
or if there is any breach of such conditions.
(2) For the loan so sanctioned, the applicant shall furnish one surety
and the person and property of the applicant as wel l as of the surety shall be
liable for the repayment of the loan and costs, if any, incurred in granting or
recovering the loan:
Provided that the controlling authority may, in any case, for reasons to
be recorded in writing, exempt any applicant from furnishing a surety.
6. Loan how repayable .- The loan shall be repayable by the borrower
in twenty half-yearly equated instalments:
Provided that the repayment of instalments shall no t commence before
the expiry of four years from the date of payment of the loan.
7. Inspection and supply of information .- A borrower shall be
bound,-
(a) to comply with any general or special order of the controlling
authority relating to the inspection of the premise s, buildings,
machinery and stock in hand purchased or hired by t he
borrower with the aid of the loan granted to him; and
(b) to furnish any information which the controllin g authority may
require in respect of the purpose or purposes for w hich the loan
was granted or of the manner in which the loan has been or is
being utilised.
8. Consequence of failure by borrower to comply wit h provisions
of section 7 .- If any borrower fails without reasonable cause t o comply with
any order or to furnish any information as required by section 7, or if the
controlling authority after inspection provided for in section 7, or otherwise is
satisfied that the money lent is not being applied to the purpose or purposes
for which it was lent or that any condition on whic h it was granted is not
being duly fulfilled, the controlling authority may declare, notwithstanding
anything contained in the bond executed by the borr ower, that the loan shall
be immediately recoverable and shall give notice of such declaration to the
H. P. BACKWARD CLASSES (GRANT OF LOANS) ACT, 1969 4
borrower.
9. Appeal .- Within six weeks of the receipt of the notice un der
section 8 the borrower may appeal against the decla ration of the controlling
authority under that section to the Government and the decision of the
Government thereon shall be final.
10. Mode of recovery .- (1) When the loan or any instalment hereof
falls due and is not paid on or before the due date , or when the loan has been
declared immediately recoverable under section 8 an d subject to the order
made on appeal under section 9 the controlling auth ority may cause to be
served on the borrower a notice calling upon him to pay the sum due within
such time and to such officer as may be specified therein.
(2) In case of default in complying with a notice under sub-section (1)
the sums specified in the notice including costs, i f any, incurred by the
Government may be realised as arrears of land revenue.
11. Finality of decision of Government .- The decision of the
Government as to whether the conditions laid down i n or under any of the
provisions of this Act have been satisfied shall be final, and no suit shall be
brought in any civil court to set aside or modify a ny order made thereunder,
nor shall the same be questioned by any court of la w in any proceedings
whatsoever.
12. Legal proceedings .- No prosecution, suit or other proceedings
shall lie against the Government or any officer or authority vested with
powers under this Act for anything in good faith do ne or intended to be done
thereunder.
13. Power to make rules .- (1) The Government may, by notification
in the Official Gazette, make rules, consistent with this Act for carrying out all
or any of its purposes.
(2) In particular and without prejudice to the gene rality of the
foregoing power, the Government may make rules regu lating or determining
all or any of the following matters, namely :--
(a) the manner of calculating the annual gross inco me of a person
for the purpose of grant of loans under this Act;
(b) the forms of the applications to be made and de eds to be
executed in respect of loans;
(c) the mode in which payment of loans is to be mad e;
(d) the forms of notices to be given or declaration s to be made by
the controlling authority; and
(e) the purposes for which loans may be sanctioned under this Act.
(3) Every rule made under this Act shall be laid, a s soon as may be
H. P. BACKWARD CLASSES (GRANT OF LOANS) ACT, 1969 5
after it is made, before the Legislative Assembly w hile it is in session, for a
total period of not less than fourteen days which m ay be comprised in one
session or in two or more successive sessions, and if before the expiry of the
session in which it is so laid or the sessions afor esaid, the Assembly makes
any modification in the rule or decides that the ru le should not be made, the
rule shall thereafter have effect only in such modi fied form or be of no effect,
as the case may be, so, however, that any such modi fication or annulment
shall be without prejudice to the validity of anyth ing previously done under
that rule.
14. Repeal and savings .-- (1) The Punjab Backward Classes (Grant
of Loans) Act, 1957 (17 of 1957) in its application to the territories added to
the Union territory of Himachal Pradesh by section 5 of the Punjab Re-
organisation Act, 1966 (31 of 1966), is hereby repealed:
Provided that such repeal shall not affect-
(a) the previous operation of the said Act or anyth ing duly done or
suffered thereunder; or
(b) any right, privilege, obligation or liability a cquired, accrued or
incurred under the said Act; or
(c) any penalty, forfeiture or punishment incurred in respect of any
offence committed against the said Act; or
(d) any investigation, legal proceeding or remedy i n respect of any
such right, privilege, obligation, liability, penal ty, forfeiture or
punishment as aforesaid;
and any such investigation, legal proceeding or rem edy may be instituted,
continued or enforced and any such penalty, forfeit ure or punishment may be
imposed as if the said Act had not been repealed.
(2) Any loan granted under the Act repealed by sub- section (1) shall
be deemed to be a loan granted under this Act and t he amount of such loan
outstanding at the commencement of this Act shall b e recovered under the
provisions of this Act and the rules made thereunder.
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