The Himachal Pradesh Public Moneys (Recovery of Dues) Act, 2000

THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF 
DUES) ACT, 2000 
ARRANGEMENT OF SECTIONS 
Sections: 
1. Short title, extent and commencement. 
2. Definitions. 
3. Recovery of certain dues as arrears of land revenue. 
4. Collection of charges. 
5. Repeal and savings. 
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THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF 
DUES) ACT, 2000 
(ACT NO. 2 OF 2001)1 
(Received the assent of the Governor on 9th  February, 2001 and was 
published both in Hindi and English in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 17th February, 2001, pp. 5513-5523). 
An Act to re-enact the law relating to the speedy recovery of certain dues 
of the State Government or the Himachal Pradesh Financial 
Corporation or any other Corporation notified by the State 
Government in this behalf or a Government Company or a 
Banking Company. 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Fifty-first Year of the Republic of India, as follows:- 
1. Short title, extent and commencement.- (1) This Act may be 
called the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 2000. 
(2) It extends to whole of the State of Himachal Pradesh. 
(3) It shall come into force at once. 
2. Definitions.- In this Act, unless the context otherwise requires,- 
(a) “Banking Company” means,- 
(i) a Banking Company as defined in the Banking 
Regulation Act, 1949 ( 10 of 1949); 
(ii) the State Bank of India constituted under the State 
Bank of India Act, 1955 (23 of 1955); 
(iii) a subsidiary bank as defined in the State Bank of India 
(Subsidiary Banks) Act, 1959(38 of 1959); 
                                                 
1.. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
29th December, 2000, pp. 4802 and 4807. 
THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 2 
(iv) the Agricultural Finance Corporation Limited, a 
Company incorporated under the Indian Companies 
Act, 1956 (1 of 1956); 
(v) the National Bank for Agricultural Rural Development 
established under the National Bank of Agricultural 
and Rural Development Act, 1981 (61 of 1981);  
(vi) a corresponding new bank constituted under the 
Banking Companies (Acquisition and Transfer of 
Undertaking) Act, 1970 (5 of 1970); 
(vii) any banking institution notified by the Central 
Government under section 51 of the Banking 
Regulation Act, 1949 (10 of 1949); 
(viii) the Regional Rural Banks constituted under the 
Regional Rural Banks Act, 1976 (21 of 1976); and  
(ix) a corresponding new Bank constituted under the 
Banking Companies (Acquisition and Transfer of 
Undertaking) Act, 1980 (40 of 1980); 
(b) “Collector” means a Collector of the District and includes any 
person appointed by the State Government to perform 
functions of the Collector under this Act; 
(c)  “Corporation” means the Himachal Pradesh Financial 
Corporation established under the State Financial Corporation 
Act, 1951(63 of 1951) and includes any other Corporation 
owned or controlled by the Central Government or the State 
Government which the State Government may, by 
notification specify; 
(d) “financial assistance” means any financial assistance 
rendered,- 
(i) for the purposes of vocational or technical training; or 
(ii) for the construction of residential buildings; or 
(iii) for providing drinking water, kuhl or pipe line; or 
(iv) for the development of animal husbandry, agriculture or 
horticulture; or 
(v) for the establishing, expanding, modernising, 
renovating or running any village or cottage industry, 
industrial undertaking or agro industry; or 
(vi) for purposes of any other kind of planned development; 
or 
(vii) for relief against distress; or 
(viii) for loans under the National Loans Scholarship 
Scheme; or 
THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 3 
(ix) for professional/specialised training, as may be notified, 
in the Official Gazette, by the State Government, in 
relation to which scholarship/stipend is paid out of the 
public funds and is imparted by the institutions of the 
State Government; 
(e) “Government Company” means a Government Company as 
defined in section 617 of the Companies Act, 1956 (1 of 
1956) and which is notified as such by the State Government 
from time to time; 
(f) “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 power or the maintenance, repair, testing or 
servicing of machinery, vehicles, vessels, motor boats, trailers 
or tractors or assembling, repairing or packing of any articles 
with the aid of machinery or power or fishing or providing 
shore facilities for fishing or maintenance thereof, or for the 
development of any contiguous area of land as an industrial 
estate or providing special or technical knowledge or other 
services for promotion of industrial growth; 
Explanation.- The expression “processing of goods” 
includes any act or process for producing, preparing or 
making an article by subjecting any material to a manual, 
mechanical, chemical, electrical or any other like operation; 
(g) “sponsored scheme” means a scheme sponsored by way of 
financial assistance by the State Government or the Central 
Government under which the concerned Government, either- 
(i) advances money to the Corporation or the Government 
Company for the purposes of disbursing loans, 
advances, grants or subsidies or for the purpose of sale 
of goods on credit or hire purchase; or 
(ii) guarantees or agrees to guarantee the payment of loan, 
advances, grant or subsidies or the payment of price of 
goods sold on credit or hire purchase; and 
(h) “State Government” means the Government of Himachal 
Pradesh. 
3. Recovery of certain dues as arrears of land revenue.- (1) Where 
any person either as principal or as surety or as guarantor is a party- 
(a)  (i) to any agreement or bond, relating to a loan, advance 
grant, subsidy, financial assistance, stipend or 
scholarship given under that agreement or relating to 
credit in respect of, or relating to hire purchase of goods 
sold by the State Government, Government Company, 
THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 4 
Banking Company, or Corporation by way of financial 
assistance; or 
(ii) to any agreement relating to loan, advance, grant or 
subsidy given under that agreement or relating to credit 
in respect of, or relating to hire purchase of, goods sold 
by the State Government, a Banking Company, a 
Corporation or a Government Company as the case 
may be, under a sponsored scheme; or 
(b) to any agreement relating to a guarantee given by the State 
Government, Government Company, Banking Company or a 
corporation in respect of a loan raised by an industrial 
undertaking; or 
(c) to any agreement providing that any money payable 
thereunder to the State Government shall be recoverable as 
arrears of land revenue; or  
(d) to any agreement to sell or distribute goods or any other 
article supplied by/or through the State Government and such 
person- 
(i) makes any default in the repayment of the loan, 
advance, stipend or scholarship or any instalment or 
interest thereof; or 
(ii) having become liable under the conditions of the grant 
to refund the grant or any portion thereof, makes any 
default in repayment of such grant or portion or 
instalment thereof; or 
(iii) having become liable to pay the price of the goods or 
any other article or interest thereof, fails to pay the 
same or part thereof; or 
(iv) otherwise fails to comply with the terms of the 
agreement; 
then, in case of the State Government, such officers as may be 
authorised in this behalf by the State Government, by notification in the 
Official Gazette, and in the case of Banking Company, Corporation or the 
Government Company, the Managing Director or any other officer not below 
the rank of Divisional Manager specifically authorised in this behalf, thereof, 
by whatever name called, may without prejudice to any other mode of 
recovery under any other law for the time being in force, send a certificate to 
the Collector, mentioning the sum due from such person and requesting that 
such sum together with the costs of the proceedings or any other sum be 
recovered as if it were an arrear of land revenue. 
(2) A certificate sent under sub-section(1) shall be conclusive proof of 
the matter stated therein and the Collector on receiving such certificate shall 
proceed to recover the amount stated therein as an arrear of land revenue. 
THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 5 
(3) Nothing in sub-section (1) shall affect any interest of the State 
Government, a Banking Company, a Corporation or a Government Company, 
in any property created by mortgage, charge, pledge or any other 
encumbrance. 
(4) Where the property of any person referred to in sub-section(1) is 
subject to any mortgage, charge, pledge or other encumbrance in favour of the 
State Government, a Banking Company, a Corporation or a Government 
Company, as the case may be, then- 
(a) in every case of a pledge of goods, proceedings shall first be 
taken for the sale of goods so pledged and if the proceeds of 
such sale  are less than the sum due, then proceedings shall be 
taken for recovery of the balance against the other property of 
such person: 
Provided that where the State Government is of the 
opinion that it is necessary so to do for safeguarding the 
recovery of the sum due to it or to a Banking company, a 
Corporation or a Government Company, as the case may be, 
it may, for reasons to be recorded in writing, direct 
proceedings to be taken against the other property then the 
goods pledged before or at the same time as the proceedings 
are taken for the sale of 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 therein of the person referred to in sub-section (1) 
shall first be sold in proceedings for recovery of the sum due 
from that person and any other proceedings may be taken 
only if the Collector certifies that there is no prospect of 
realisation of the sum due through the first mentioned process 
within a reasonable time. 
(5) Where Government dues are recoverable from the person 
mentioned in section 3 in addition to dues of Government Company, Banking 
Company or Corporation, priority will be given to Government dues in 
recovery as arrears of land revenue. 
4. Collection charges.- A Banking Company, a Corporation or a 
Government Company availing the services of the Collector under section 3 
shall pay collection charges to the State Government at such rates, as may be 
notified in the Official Gazette by the State Government, from time to time. 
5. Repeal and Savings.- (1) The Himachal Pradesh Public Moneys 
(Recovery of Dues) Act, 1973 is hereby repealed. 
(2)  Notwithstanding such repeal, anything done or any action taken 
under the said Act, shall be deemed to have been done or taken under the 
Corresponding provisions of this Act. 
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THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 6 
 

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