LexThe Himachal Pradesh Relief of Agricultural Indebtedness Act, 1976
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH RELIEF OF AGRICULTURAL
INDEBTEDNESS ACT, 1976
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
LIQUIDATION OF CERTAIN DEBTS
3. Consequences of commencement of this Act.
4. Agreement for labour in lieu of debt to become void.
CHAPTER III
MORATORIUM ON EXECUTION OF DECREES
AGAINST SMALL FARMERS
5. Stay of proceedings in case of certain decrees.
6. Release of persons in detention in civil prison.
7. Relief against default in payment of instalments.
8. Powers of State Government to extend the period of
moratorium.
9. Computation of time for execution.
10. Payment of certain decrees.
11. Transfer by small farmer to be voidable.
12. Restriction on amount of claim and interest in certain cases.
CHAPTER IV
EXEMPTIONS
13. Savings.
CHAPTER V
SCALING DOWN OF DEBTS OF SMALL FARMERS
14. Application for determination of debt.
15. Determination of amount.
16. Relief to small farmers.
17. Prohibition regarding rate and amount of interest.
18. Bar to suits and proceedings and execution of decrees in civil
2 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
or revenue courts.
19. Transfer of application from one authority to another.
20. Appeals.
CHAPTER VI
GENERAL
21. Power to make rules.
22. Declaration as to giving effect to certain directive principles
of the State Policy.
23. Penalties.
24. Power to remove difficulty.
25. Repeal and savings.
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THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL
INDEBTEDNESS ACT, 1976
(ACT No. 17 OF 1 976)1
(Received the assent of the President of India on the 22nd April, 1976,
and was published in the Rajpatra, Himachal Pradesh (Extra-ordinary), dated
the 30th April, 1976, pp. 1187-1197).
An Act to provide for relief from indebtedness to certain farmers,
landless agricultural labourers and rural artisans in the State of
Himachal Pradesh.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Twenty-seventh Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.- (1) This Act may be
called the Himachal Pradesh Relief of Agricultural Indebtedness Act, 1976.
(2) It extends to the whole of the State of Himachal Pradesh.
(3) It shall come into force at once.
2. Definitions.- (1) In this Act, unless the context otherwise requires,-
(a) “agriculturist” means a person who cultivates land personally;
(b) “appointed day” means the 13th November, 1975;
(c) “appellate officer” means an officer appointed under sub-
1. For Statement of Objects and Reasons, see Rajpatra, Himachal Pradesh (Extra-
ordinary) dated. 21st February, 1976, p. 634.
THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976 3
section (1) of section 19;
(d) “authority” means one or more persons to be appointed by the
State Government as authorities by a notification for carrying
out the purposes of this Act, in respect of areas to be specified
in such notification;
(e) “civil court” includes,-
(i) any court exercising jurisdiction under the Provincial
Insolvency Act, 1920 (5 of 1920);
(ii) a Nyaya Panchayat established under the Himachal
Pradesh Panchayati Raj Act, 1968 (19 of 1970);
(iii) a court exercising powers W1der the Provincial Small
Cause Courts Act, 1887 (9 of 1887);
(f) “debt” with its grammatical variations and cognate
expressions means any liability in cash or kind, whether
secured or unsecured, due from a debtor whether payable
under a decree or order of any civil court or otherwise;
(g) “debtor” means a marginal farmer, a landless agricultural
labourer or a rural artisan who is in debt; but does not include
a small farmer;
(h) “to hold land” with its grammatical variations and cognate
expressions means to be lawfully in actual possession of land
as owner, tenant or Government lessee and the expression
“holding” shall be construed, accordingly;
(i) “landless agricultural labourer” means a person who does not
hold any land and whose principal means of livelihood is
manual labour on agricultural land and includes a person who
follows anyone or more of the following agricultural
occupations in the capacity of labourer on hire or exchange,
whether paid in cash, in kind or partly in cash and partly in
kind:-
(a) farming including cultivation and tillage of soil etc;
(b) dairy farming;
(c) production, cultivation, growing and harvesting of
horticultural commodity;
(d) raising of livestock, bees or poultry; and
(e) any practice performed on a farm as incidental to or
in conjunction with farm operations (including any
forestry or timbering operations) and preparation for
market and delivery to storage or to market or to
carriage for transportation of farm products;
4 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
(j) “Local authority” means a Municipal Corporation or
Municipal Committee, a Notified Area Committee or a
Cantonment Board, as the case may be, constituted or deemed
to have been constituted under any law relating to local
authority for the time being in force;
(k) “marginal farmer” means an agriculturist who earns his
livelihood mainly by agriculture and who holds land not
exceeding one hectare of unirrigated or half hectare of
irrigated land:
Provided that if a marginal farmer holds both classes
of land then the area for the purpose of this clause shall be
determined on the basis of half hectare of irrigated land
counting as one hectare of unirrigated land and on the basis of
this conversion ratio the total area of such farmer shall not
exceed one hectare;
(l) “member of a family” means father, mother, spouse, brother,
unmarried dependant sister, divorced and dependent sister,
son, son’s wife, or unmarried daughter, divorced and
dependent daughter, son’s son, sons’ unmarried daughter,
son’s divorced and dependent daughter and includes any
relation residing with and actually dependant for his
maintenance on the debtor;
(m) “rural artisan” means a person who does not hold any
agricultural land and whose principal means of livelihood is
production or repair of traditional tools, implements and
articles or things used for agriculture purposes or purposes
ancillary thereto and also person who normally earns his
livelihood by practising a craft either by his own labour or by
the help of the labour of the members of his family in the
rural area and whose annual house-hold income does not
exceed two thousand and four hundred rupees;
(n) “rural area” means an area outside the jurisdiction of a local
authority;
(o) “small farmer” means an agriculturist who earns his
livelihood mainly by agriculture and who holds more than
one hectare and less than two hectares of unirrigated or more
than half hectare and less than one hectare of irrigated land:
Provided that if a small farmer holds both classes of
land then the area for the purpose of this clause shall be
determined on the basis of one hectare of irrigated land
counting as two hectares of unirrigated land and on the basis
of this conversion ratio the total area of such farmer shall not
exceed two hectares;
THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976 5
(p) words and expressions used in this Act but not defined therein
shall have the meanings, respectively assigned to them in the
Himachal Pradesh Ceiling on Land Holdings Act, 1972 (19 of
1973).
(2) If a question arises whether a person is a marginal or small farmer,
or a landless agricultural labourer or a rural artisan, the question shall be
referred to an officer not below the rank of a Tehsildar duly appointed by the
State Government in that behalf and the decision of such officer on the
question shall be final and conclusive and shall not be called in question in
any civil court:
Provided that no such question shall be decided unless an opportunity
has been given to the interested parties to be heard.
CHAPTER II
LIQUIDATION OF CERTAIN DEBTS
3. Consequences or commencement of this Act.- Notwithstanding
anything contained in any other law for the 6me being in force or in any
contract, decree of any court or other instrument having force by virtue of any
such law, and save as otherwise expressly provided in this Act, every debt
outstanding on the appointed day, including the amount of interest, if any
payable by a debtor to creditor shall be deemed to be wholly discharged, and
the consequences as hereinafter set forth shall, with effect from the appointed
day, ensure, namely:-
(a) no such debt due from a debtor on the appointed day shall be
recoverable from him or from or against any movable or
immovable property belonging to him, nor shall any such
property be liable to be attached and sold or proceeded
against in any manner in the execution of any decree or order
relating to such debt against him;
(b) no civil court shall entertain any suit or proceeding against
such debtor for the recovery of any amount of such debt,
including interest, if any:
Provided that where a suit or proceeding is instituted
jointly against such debtor or any other person nothing in this
clause shall apply to the maintainability of a suit or proceeding in
so far as it relates to such other person;
(c) all suits and proceedings (including appeals, revisions, attachment
or execution proceedings) pending on the appointed day for the
recovery of any such debt against such debtor shall abate:
Provided that nothing in this clause shall apply to the sale
of-
(i) any movable property held and concluded before the
appointed day;
6 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
(ii) any immovable property confirmed before such day;
(d) every debtor undergoing detention in a civil prison in
execution of any decree for money passed against him by a
civil court in respect of any such debt shall be released
forthwith;
(e) every property pledged or mortgaged by such debtor shall
stand released in favour of such debtor, and the creditor shall
be bound to return the same to the debtor forthwith. If the
debtor is opposed or impeded in taking possession of the
property, then he may request the District Magistrate, or any
executive magistrate authorized by him to enforce delivery of
possession of such property. The District Magistrate, or as the
case may be, the executive magistrate shall take or cause to be
taken such steps and use or cause to be used such force as
may be reasonably necessary for securing the delivery of
possession of the property to the debtor.
Explanation.- Nothing in this section shall be construed to entitle any
such debtor to the refund of any part of a debt already repaid by him or
recovered from him before the appointed day.
4. Agreement for labour in lieu of debt to become void.- Any
custom or tradition or any agreement (whether made before or after the
appointed day), whereunder or by virtue of which a debtor or any member of
his family is required to work as labourer or otherwise for the creditor shall be
void and of no effect and shall not be enforceable in any court.
CHAPTER III
MORATORIUM ON EXECUTION OF DECREES AGAINST
SMALL FARMERS
5. Stay or proceedings in case or certain decrees.- (1) No debt or
part thereof including any interest thereon due from a small farmer as on the
appointed day shall be recoverable from him for a period of one year
commencing from the appointed day.
(2) All proceedings in execution of any decree for money, or
proceedings for making final, any preliminary decree for foreclosure or sale,
or proceedings in execution of any final decree for sale, passed by a civil court
on the basis of a liability incurred before the appointed day in which the
judgment debtor or defendant, as the case may be, is, on the appointed day, a
small farmer, shall be stayed against such judgment debtor or defendant, on an
application made by him in this behalf for a period of one year from the
appointed day.
(3) All attachments of growing crops, agricultural produce, livestock
and other movable property of a perishable nature made in execution of
decrees for money the execution of which has been stayed under sub-section
(1) and existing on the date on which the stay order is passed shall be
withdrawn.
THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976 7
(4) Every stay order passed by the court under this section shall relate
back to the date of the application for stay filed by the judgment debtor or
defendant, as the case may be, and the proceedings shall for all purposes of
this Act be deemed to have been stayed with effect from such date.
6. Release of persons in detention in civil prison.- (1) On the ap-
pointed day, every small farmer undergoing detention in a civil prison in
execution of any decree for money passed by civil court in respect of his debt
shall be released.
(2) No small farmer shall in any case be liable to arrest or detention in
a civil prison in execution of any such decree as is referred to in sub-section
(1) for a period of one year from the appointed day.
7. Relief against default in payment or instalments.- (1) Where a
decree for payment of the decretal amount by instalments contains a provision
that in default of one or more instalments, the whole amount shall become due
at once, then, notwithstanding anything in such provision, non-payment of any
instalment falling due during the period in which the proceedings in execution
remain stayed under this Act shall not be deemed to be a default for the
purposes of such provision.
(2) If the judgment debtor pays the instalment so falling due within a
period of twelve months after the expiry of period prescribed in sub-section
(1) then such instalment shall be deemed to have been paid on the due date.
8. Powers of State Government to extend the period of mora-
torium.- The State Government may by notification in the Official Gazette
extend the period of one year referred to in sub-sections (1) and (2) of section
5 and sub-section (2) of section 6 by a further period not exceeding one year.
9. Computation of time for execution.- In computing the period of
twelve years prescribed by the Limitation Act, 1963 (3 of 1963) the period
during which proceedings are stayed under this Act shall be excluded.
10. Payment of certain decrees.- Nothing contained in this Chapter
shall-
(a) apply to a decree for money arising out of claims relating to
trusts or for maintenance or for profits in favour of a co-
tenant, or co-owner, or for mesne profits or for damages for
tort, or for contribution between co-tenants of agricultural
lands ; or
(b) apply to a mortgage decree against property in the hands of a
subsequent transferee who has taken the transfer in order to
satisfy the mortgage subject to the mortgage on the basis of
which such decree has been obtained; or
(c) apply to decisions, orders of any authority, made under the
provisions of the Himachal Pradesh Co-operative Societies
Act, 1968 (3 of 1969).
8 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
11. Transfer by small farmer to be voidable.- Every transfer of
property made by a small farmer against whom proceedings in execution have
been stayed under this Act shall be voidable at the option of the creditor
whose claim against such small farmer is defeated or delayed.
12. Restriction on amount of claim and interest in certain cases.-
(1) On the expiry of one year or such extended period as may be notified
under section 8 from the appointed day, no claim arising out of any proceed-
ing,; which are stayed under sub-section (1) of section 5 or out of any decree
described in sub-section (1) of that section in respect of which no execution
proceedings have been taken shall ever exceed the amount of the principal by
more than one hundred fifty percent, of such amount.
(2) No interest shall accrue on any amount included in any claim
referred to in sub-section (1) during the period this Chapter is in operation.
CHAPTER IV
EXEMPTIONS
13. Savings.- Subject to the provisions of section 9, nothing in this
Act shall affect the debts and other liabi1ities of any debtor or small farmer
falling under any of the following matters, namely:-
(a) any rent due in respect of any property let out to such debtor;
(b) any liability arising out of breach of trust or any tortious
liability;
(c) any liability in respect of wages or remuneration due as salary
or otherwise for services rendered;
(d) any liability in respect of maintenance, whether under a
decree of court or otherwise ; and
(e) debt due to:-
(i) the Central Government or State Government;
(ii) any local authority;
(iii) a bank as defined in the Himachal Pradesh
Agricultural Credit Operations and Miscellaneous
Provision (Bank) Act, 1972 (7 of 1973) ;
(iv) a body corporate established under any law for the
time being in force;
(v) any co-operative society, registered or deemed to be
registered under the provision of the Himachal
Pradesh Co-operative Societies Act, 1968 (3 of 1969) ;
(f) any Government Company within the meaning of the
Companies Act, 1956 (1 of 1956);
(g) any sum due to Government; and
THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976 9
(h) any amount recoverable as arrears of land revenue.
CHAPTER V
SCALING DOWN OF DEBTS OF SMALL FARMERS
14. Application for determination of debt.- (1) A small farmer may,
within such time and in such manner as may be prescribed, make an
application to an authority for the local area within which such small farmer
ordinarily resides, for determination of this debt.
(2) Unless the small farmer has already made an application under
sub-section (1) any of his creditors may also make an application to the same
authority to which, and in the same manner in which, the small farmer might
have applied under that sub-section for determination of the debt in question.
(3) If application are made to more than one authority in respect or the
same debt, such applications shall, subject to such rules as may be made in
this behalf be transferred to and deal with by one authority.
(4) An application under sub-section (1) or under sub-section (2) shall
be in writing in the prescribed form and shall be accompanied by such fee as
may be prescribed.
15. Determination of amount.- (1) On receipt of application under
section 14 the authority, after giving an opportunity to the parties concerned to
appear and be heard, shall determine in respect of the debt in question the
amount of the principal and the amount of interest at the rate of six percentum
per annum due thereon, upto the date of such determination.
(2) When the authority has determined under sub-section (1) the
amount of the debt together with interest the decision of the authority to be
embodied in an order, shall subject to the provisions of section 20 relating to
appeal, be final and shall not be called in question in any civil court.
(3) The procedure to be followed by an authority in any proceeding
before it shall, subject to the provisions of this Chapter be in accordance with
such rules as may be prescribed.
(4) An order made under sub-section (2) shall be in the prescribed
from and shall include such particulars as may be prescribed.
(5) The debt in excess of the debt determined under the provision of
this section shall not be recoverable from the small farmer and shall stand
discharged.
16. Relief to small farmers.- Notwithstanding anything contained
elsewhere in this Act in every case, the authority shall, subjects to such rules
as may be made in this behalf by an order, reduce the debt to such amount as
does not exceed twenty per cent of the estimated gross value of the
agricultural produce earned by the small farmer in the year preceding the year
in which the determination takes place, multiplied by seven and shall make a
further order that the amount of the debt to be repaid in such monthly or
annual instalments covering a period not exceeding seven years either with or
10 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
without interest, as the authority may determine.
17. Prohibition regarding rate and amount of interest.-
Notwithstanding anything contained in any law for the time being in force or
in any agreement, no small farmer shall be liable to pay after the
commencement of this Act-
(a) any sum in respect of principal and interest which together
exceeds the principal;
(b) on account of interest outstanding on the date, upto which
such liability is computed a sum greater than the principal
outstanding on such date; and
(c) any interest other than simple interest at a rate of six per cent
per annum or the rate stipulated between the parties,
whichever is less:
18. Bar to suits and proceedings and execution of decrees in civil
or revenue courts.- (1) No civil or revenue court shall entertain a suit,
application or proceeding against a small farmer in respect of any debt to
which the provisions of this Chapter apply and any suit, application or pro-
ceeding pending before such court after the commencement of this Act shall
abate.
(2) Notwithstanding anything contained in any law for the time being
in force, no decree of a civil court in relation to the debt to which this Chapter
apply, shall be executed.
19. Transfer of application from one authority to another.- (1)
The State Government may authorise the Collector to transfer from one
authority to another, for disposal, an application made under section 14.
(2) An authority to which an application is transferred under sub-
section (1) may continue the proceeding in connection with the application
from the stage which has been reached when the application is transferred.
20. Appeals.- (1) An appeal may be made in the prescribed manner to
an Appellate Officer to be appointed by the State Government, against any
decision or order of an authority, made under this Chapter.
(2) An appeal under sub-section (1) shall be made within thirty days
from the date of the decision or order referred to in that sub-section:
Provided that the Appellate Officer may entertain the appeal after the
expiry of the said period of thirty days, if he is satisfied that the appellant was
prevented by sufficient cause from filing the appeal in time.
(3) The State Government may make rules regarding the procedure to
be followed by an Appellate Officer and the fees to be paid by an appellant for
preferring the appeal.
(4) The Appellate Officer may, after giving the appellant an
opportunity of being heard, either confirm or modify the decision or order
made by the authority or direct the authority to take such action as the
THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976 11
Appellate Officer thinks fit.
(5) An order passed by an Appellate Officer under this section shall
be final.
CHAPTER VI
GENERAL
21. Power to make rules.- (1) The State Government may, by
notification in the Official 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 matters which
may be or have to be prescribed.
(3) The power to make any rule under sub-sections (1) and (2) is
subject to the condition of the rule being made after previous publication.
(4) Every rule made under this Act shall be laid, as soon as maybe
after it is made, before the State Legislature while it is in session for a total
period of not less than seven days, which may be comprised in one session or
in two successive sessions, and if before the expiry of the session in which it
is laid or the session immediately following, the legislature requires any
modification in the rule or desires that the rule should not be made, the ru1e
shall thereafter have effect only in such modified form or be no effect, as the
case may be, so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.
22. Declaration as to giving effect to certain directive principles of
the State Policy.- It is hereby declared that the provisions of this Act are for
giving effect to the policy of the State towards securing the principles
specified in clauses (b) and (c) of Article 39 of the Constitution.
23. Penalties.- Whoever-
(a) after the appointed day, recovers any debt or part thereof
including interest thereon from a debtor or a small farmer in
contravention of the provisions of section 3 (a), section 5 (1)
or Chapter V of this Act;
(b) intentionally makes any false statement before any authority
or an Appellate Officer in any proceeding under this Act;
(c) intentionally produces before an authority or an Appellate
Officer any false document; or
(d) abets any such act; shall, on conviction, be liable to
imprisonment for a term which may extend to three years or
fine which may extend to two thousand rupees or with both.
24. Power to remove difficulty.- If any difficulty arises in giving
effect to the provisions of this Act, the State Government may, by order
published in the Official Gazette, make such provisions or give such direction
12 THE HIMACHAL PRADESH RELIEF OF AGRICULTURAL INDEBTEDNESS ACT, 1976
not inconsistent with the provisions of this Act, as may appear to it to be
necessary or expedient for the removal of the difficulty.
25. Repeal and savings.- With effect from the commencement of this
Act, the Himachal Pradesh Relief of Agricultural Indebtedness Ordinance,
1975 (7 of 1975), shall stand repealed:
Provided that anything done or any action taken under the said
Ordinance shall be deemed to have been done or taken under this Act.
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