The JAMMU AND KASHMIR DEBTORS RELIEF ACT, 1976

DEBTORS RELIEF ACT, 1976
(ACT NO. XV OF 1976)
DEBTORS RELIEF ACT, 1976 481
THE JAMMU AND KASHMIR DEBTORS RELIEF ACT, 1976.
(ACT NO. XV OF 1976)
CONTENTS
Preamble.
Section.
1. Short title, extent and commencement.
2. Definitions.
3. Setting up of Debt Conciliation Boards.
4. Application for settlement between a debtor and his creditors.
5. Verification of application.
6. Particulars to be stated in application.
7. Prodedure on receipt of application.
8. Notice calling upon creditors to submit statement of debts.
9. Procedure on submission of statements of debts.
10. Board to attempt amicable settlement.
11.  Power of Board to adjudicate on genuineness or enforceability of debts.
12. Power of Board to require attendance of persons and production of docu-
ments and to receive evidence.
13. Registration and effect of agreement.
14. Debts in respect of which no application for settlement is made.
15. Debts in respect of which suits or other proceedings are pending.
16. Powers to pass just and equitable orders in cases where creditor does
not agree to amicable settlement.
17. Power of Board to decide questions arising on settlement of debts.
18. Bar of Civil Court jurisdiction.
482 DEBTORS RELIEF ACT, 1976
Section.
19. Power of Board to review its order.
20. Agreements or orders passed by Board to supersede decisions of Civil
Court.
21. Court-fee on appeal.
22. Procedure in appeal.
23. Court-fee on applications.
24. Settlement to be void.
25. Consolidation of applications.
26. Power of transfer.
27. Continuation of proceeding on death of party.
28. The Board may summon any other person.
29. Transfer of pending suits and proceedings to the Board.
30. Application of Limitation Act.
31. Appearance of party before Board by agent or by legal practitioner.
32. Members of Board deemed to be public servants.
33. Transfer of pending applications and proceedings to Civil Courts.
34. Power of Government to delegate power to the Revenue Minister or
any subordinate authority.
35. Penalty.
36. Power to make rules.
37. Repeal and savings.
DEBTORS RELIEF ACT, 1976 483
THE JAMMU AND KASHMIR DEBTORS RELIEF ACT, 1976
(ACT NO. XV OF 1976)
[Received the assent of the Governor on 21st April, 1976 and published
in Government Gazette dated 23rd April, 1976 (Extra.)]
An Act to provide relief from indebtedness to the weaker sections of the
community in the Jammu and Kashmir State.
Be it enacted by the Jammu and Kashmir State Legislature in the Twenty-
seventh Year of the Republic of India as follows :––
1. Short title, extent and commencement.––(1) This Act may be called
the Jammu and Kashmir Debtors Relief Act, 1976.
(2) It shall extend to the 1[whole of the Union territory of Jammu and
Kashmir].
2[(3) It shall come into force on such date as the Government may by
notification in the 3{Official Gazette} appoint].
2. Definitions.––Unless there is anything repugnant in the subject or
context,––
(1) “debt” means a liability of a debtor in cash or in kind payable under
a written or unwritten engagement including a liability under a de-
cree or order of a Civil Court but shall not include––
(i) debts barred by the law of limitation ;
(ii) debts due to  the State Land Development Bank, or a Land
Development Bank or a Co-operative Bank as defined in the
Jammu and Kashmir Co-operative Societies Act, 19604 or any
institution mentioned in section 4 (A) of the Jammu and Kash-
mir Alienation of Land Act, Svt. 1995 5[x x x x] ;
1. Substituted for “whole of the State of Jammu and Kashmir” by S.O. 1229 (E) dated 31.03.2020.
2. Enforced w.e.f. 26th January, 1977 vide SRO-801 dated 23-12-1976.
3. Substituted for “Government Gazette” by S.O. 1229 (E) dated 31.03.2020.
4. Now the Cooperative Societies Act, 1989.
5. Words and figures “or section 140 of the Jammu and Kashmir Transfer of Property Act,
Samvat 1977” omitted by S.O. 1229 (E) dated 31.03.2020.
484 DEBTORS RELIEF ACT, 1976
(iii) bona fide cash advances made for purchase of fruit ;
(iv) arrears of rent, wages or hires ;
(v) all sums payable to the 1[Government of Union territory of
Jammu and Kashmir] or Union Government or a Company or
Corporation owned by the 1[Government of Union territory of
Jammu and Kashmir] or the Union Government ;
(vi) advances made for supply of Labour ;
(vii) power debts ;
(viii) maintenance allowances ;
(ix) claims for money based on compensation for damages aris-
ing under tort or otherwise ;
(x) breach of contract of service ;
(xi) debts due to a supplier of articles on credit or on instalment
basis ;
(xii) any liability in cash arising out of an order under sub-section
(4) of section 16 of the Jammu and Kashmir Distressed Debt-
ors’ Relief Act, Svt. 2006 ;
(2) “Debtor” means a person who owes a debt, on his own behalf or as
surety for some one else, and who earns his livelihood wholly or
principally by agriculture, or by horticultural or pastoral pursuits,
carried on within the limits of the *State or who, within such limits,
ordinarily engages personally in agricultural labour or such pur-
suits ; and includes––
(i) a lohar, a tarkhan, and a kumhar who, within such limits, is
wholly or principally dependent on wages in the shape of
agricultural produce given to him on account of his service
1. Substituted for “Government of Jammu and Kashmir” by S.O. 1229 (E) dated 31.03.2020.
* Now Union territory of Jammu and Kashmir.
DEBTORS RELIEF ACT, 1976 485
to agriculturists as such lohar, tarkhan or kumhar, as the case
may be ; and
(ii) a person who has incurred a debt, for purposes of handi-
crafts, not exceeding ten thousand rupees ; and
(iii) heirs, successors and executors of such person.
Explanation:––An “agriculturist” who, without any intention of changing
his status as such temporarily ceases to earn his livelihood
by such labour or pursuits, or who is prevented from so earn-
ing his livelihood or so engaging in such labour or pursuits
by age or by bodily infirmity or by insanity or by minority or
by necessary absence due to service in the non-commissioned
ranks of the Indian Army, Navy and Air Force, or due to ser-
vice in the Civil Department under the Government of Jammu
and Kashmir or the Union Government of India when emolu-
ments of such service do not exceed two hundred and fifty
rupees per mensem, does not thereby cease to be an “agricul-
turist” within this definition ;
(3) “prescribed” means prescribed by rules made under this Act ;
(4) “wages” shall have the same meaning as is assigned to it in the law,
for the time being in force in the *State, relating to compensation
payable to workmen ;
(5) “land revenue” and “arrears of land revenue” have the meanings
assigned to these words in the Jammu and Kashmir Land Revenue
Act, Svt. 1996 ;
(6) “creditor” means one to whom a debt is due, but does not include
any person serving in the Indian Army, Navy or Air Force ;
(7) “assets” include the entire property of all sorts owned by a debtor;
(8) “Board” means a Debt Conciliation Board established under sec-
tion 3 ;
* Now Union territory of Jammu and Kashmir.
486 DEBTORS RELIEF ACT, 1976
(9) “Co-operative Society” means a society registered under the pro-
visions of the Jammu and Kashmir Co-operative Societies Act, 19601;
(10) the word and expressions used in this Act but not defined, shall
have the meanings assigned to them in the 2[Code of Civil Proce-
dure, 1908 (5 of 1908)] or the Jammu and Kashmir Land Revenue
Act, Svt. 1996, as may be applicable.
3. Setting up of Debt Conciliation Boards. ––(1) The Government may, for
the purpose of settlement of debts, by order notified in the 3[Official Gazette]––
(a) establish Debt Conciliation Boards ;
(b) define the territorial and pecuniary limits of the jurisdiction of a
Board ; and
(c) establish additional Boards within the territorial limits of the jurisdic-
tion of a Board and also provide for the distribution of business
between the Boards so established.
(2) Every Board shall consist of a Chairman, who shall be a Government
official, and not less than two other members to be appointed by the Govern-
ment.
(3) The Chairman and every member of a Board so established shall be
appointed for such period as the Government may determine.
(4) The quorum for meeting of the Board shall be half its number of
members including the Chairman and where such number is odd, half of such
number increased by one.
(5) The decision of the majority of its members including the Chairman
present in the meeting shall prevail.
(6) No member of a Board, including the Chairman, who has directly or
indirectly any share or interest in any transaction, out of which the proceed-
ings before the Board have arisen, shall act as a member of the Board in respect
of such proceedings.
1. Now the Cooperative Societies Act, 1989.
2. Substituted for “Code of Civil Procedure, Samvat 1977” by S.O. 1229 (E) dated 31.03.2020.
3. Substituted for “Government Gazette” ibid.
DEBTORS RELIEF ACT, 1976 487
(7) The Government may at any time, by order notify in the 1[Official
Gazette]––
(a) dissolve any Board ;
(b) transfer, on grounds of administration, or remove, on grounds of
misconduct or otherwise, the Chairman or any member of a Board
and appoint in his place any other person as such Chairman or
member.
(8) An additional Board shall have the same powers as are conferred on
the existing Boards and shall be deemed in respect of proceedings transferred
or allotted to it, as the successor-in-office of the existing Board.
(9) When a Board is dissolved or ceases to exist otherwise, the Govern-
ment may at any time establish another Board within the same local limits in
which the former Board had jurisdiction and may declare this Board to be the
successor-in-office of the first Board and may confer on it the same powers as
are conferred on the former Board.
(10) The dissolution of a Board or the occurrence of any vacancy on the
Board through death, resignation or removal of its members under sub-section
(7) or absence of any member or Chairman in any meeting shall not in any way
affect the validity of any proceedings pending before or conducted by the said
Board, or before any other Board established in place of the said Board as the
case may be, as if there has been no dissolution of the Board or the occurrence
of such vacancy or the absence of such member or Chairman.
(11) save as otherwise provided in this Act, the proceedings pending
before any Board which has been dissolved under sub-section (7) and in place
of which no other Board has been established, shall be deemed to be civil
proceedings within the meaning of 2[section 14 of the Limitation Act, 1963 (36
of 1963)] and the provisions of the said section shall, as far as may be, apply to
the computation of the period of limitation in regard to any suit or application
which may be instituted in any civil court to enforce any  claim which was the
subject-matter of the proceedings pending before the Board so dissolved.
1. Substituted for “Government Gazette” by S.O. 1229 (E) dated 31.03.2020.
2. Substituted for “section 14 of Limitation Act, Samvat 1995” ibid.
488 DEBTORS RELIEF ACT, 1976
4. Application for settlement between a debtor and his creditors.––
Within six months or such or such longer period as the Government may, by
notification specify for a particular area, from the date on which a Board is
established under section 3, a debtor or any of his creditors shall apply to the
Board appointed for the area in which a debtor resides or holds any land to
effect settlement between the debtor and his creditors.
1[x x x x].
5. Verification of application.––Every application to a Board shall be in
writing and be signed by the applicant and verified in such manner as may be
prescribed.
6. Particulars to be stated in application.––(1) Every application pre-
sented by a debtor shall contain the following particulars and shall be in such
form as may be prescribed :––
(a) the place where the applicant resides or holds land ;
(b) the particulars of all debts owed by applicant with date or dates
when and causes for which, these were incurred, and the names
and particulars of the creditor’s ;
(c) the particulars of all property held by the applicant, together with a
specification of the value thereof, the place or the places at which
such property is to be found, and details of any attachment, mort-
gage, lien or charge subsisting thereon, including the names and
particulars of the co-sharers, if any ;
(d) a statement that the applicant is unable to pay his debts ;
(e) a statement whether the applicant has previously filed an applica-
tion in respect of the same debt before the same or another Board,
and if so, with what result ;
(f) details of any debts for which the debtor is liable as a surety or is
liable with other persons as a joint debtor or joint surety, together
with the names and particulars of all such persons ; and
1. Proviso to section 4 omitted by S.O. 1229 (E) dated 31.03.2020.
DEBTORS RELIEF ACT, 1976 489
(g) the history of each debt with particulars of the original principal
and the rate of interest chargeable and paid thereon.
(2) Eery application presented by a creditor shall contain the following
particulars and shall be in such form as may be prescribed––
(a) the place where the debtor resides or holds land ;
(b) the amount and particulars of the creditors claim against his debtor ;
(c) the history of each such debt and the particulars of the amount
originally advanced and the rate of interest chargeable and recov-
ered ;
(d) the names and particulars of the other creditors as far as these are
known to the applicant ;
(e) particulars, so far as these are known to such creditor, of the
debtor’s property ;
(f) a statement whether such creditors has previously filed an applica-
tion in respect of the same debt before the same or another Board,
and if so, with result ; and
(g) a statement whether the liability has been incurred by the debtor
himself or has devolved upon him by succession or otherwise.
7. Procedure on receipt of application.––(1) On receipt of an applica-
tion under section 4, the Chairman of the Board shall pass an order fixing a date
and place for hearing the application.
(2) Notice of the order under sub-section (1) shall be sent to creditors by
registered post, acknowledgment due, and where the debtor is not the appli-
cant, notice of the order under sub-section (1) shall be sent to such debtor in
a similar manner.
(3) Where service of such notice in the manner provided in sub-section
(2) is not practicable, the notice shall be served in any other manner prescribed
by rules.
490 DEBTORS RELIEF ACT, 1976
8. Notice calling upon creditors to submit statements of debts.––(1) On
the date fixed, the Board shall issue a notice calling upon every creditor of the
debtor to submit in writing a statement of debts owed to such creditor by the
debtor.
(2) Every debt owed to a single creditor, of which no such statement has
been submitted to the Board in compliance with the provisions of sub-section
(1), shall be deemed to be duly discharged for all purposes and all occasions
against such creditor ; and every debt owed to two or more creditors jointly, of
which such a statement or statements signed by all such creditors or their
recognised agent has or have not been submitted, shall be deemed to be so
discharged against such creditors as have failed to submit the said statement or
statements, but only to the extent of their respective share, in the said debt :
Provided that no such debt shall be deemed to be discharged against
any creditors whose names have not been included in the application made
section 4 by the debtor.
(3) Where the creditor, or any of the joint creditors, fails without suffi-
cient cause to be present in person  or by an authorised agent in accordance
with the provisions of section 31 at any of the hearings fixed by the Board or
fails to produce full particulars and documents as required by sub-section (1)
of section 9, the debt due to him or to the joint creditors, as the case may be,
shall, subject to the provisions of sub-section (4), be deemed for all purposes
and all occasions to have been fully discharged.
(4) Where the creditor against whom an order has been made under sub-
section (3) makes an application within thirty days of such order and proves
that the notice was not served on him or that he was unavoidably absent at the
hearing on which such order was made by the Board, the Board may restore the
application subject to such terms as the Board thinks fit.
(5) Where the creditor appears and the debtor does not appear when the
case is called on far hearing, then––
(i) if it is proved that the notice was duly served on him in time to
enable him to appear and answer on the date fixed, the Board may
proceed ex parte ; or
DEBTORS RELIEF ACT, 1976 491
(ii) if it is not proved that the notice was so served, the Board shall
direct second notice to be issued and served on the debtor.
(6) Where the Board has adjourned the hearing of the case ex parte, and
the debtor at or before such hearing, appears and assigns good cause for the
previous non-appearance, he shall be heard in answer to the case as if he had
appeared on the date fixed for his appearance.
(7) Where the Board has proceeded ex parte against a debtor and no
action is taken under sub-section (6) it shall dispose of the case in the mode
prescribed by section 16, as far as it is possible, and may make such order as it
thinks fit.
(8) If any debtor proves to the satisfaction of the Board that the notice
was not served on him or that he was unavoidably absent at any hearing fixed
by the Board, the Board may set aside the order passed ex parte, subject to
such terms as the Board thinks fit.
(9) An application by a debtor for any order to set aside an ex parte
adjudication may be made within thirty days from the date of the adjudication
or where the notice was not duly served, when applicant had knowledge of
such adjudication.
9. Procedure on submission of statements of debts.––(1) Every creditor
submitting in compliance with a notice issued under sub-section (1) of section
8 a statement of the debts owed to him shall furnish, along with such state-
ments, full particulars of all such debts, and shall at the same time, produce all
documents (including entries in books of account) on which he relies to sup-
port his claims together with a true copy of every such document :
Provided that a decree or order of civil Court which has become final
shall be conclusive evidence as to the amount of the debt to which the decree
relates, but the amount may be reduced as the result of an agreement arrived at
in accordance with section 13.
(2) The Board shall, after marking for the purpose of identification every
original document so produced and verifying the correctness of the copy,
retain the copy and return the original to the creditor.
492 DEBTORS RELIEF ACT, 1976
10. Board to attempt amicable settlement.––The Board shall call upon
the debtor and each creditor to explain his case regarding each debt, and shall
use its best endeavours to induce them to arrive at an amicable settlement.
11. Power of Board to adjudicate on genuineness or enforceability of
debts.–– If a creditor or debtor, as the case may be, challenges the genuine-
ness or enforceability of a debt included in an application but other than a debt
payable under a decree or order of a civil court which has become final or
denies the liability to pay such debt, the Board shall adjudicate upon the issue.
12. Power of Board to require attendance of persons and production of
documents and to receive evidence.––Any Board may exercise all such pow-
ers connected with the summoning and examining of parties and withesses
and with the production of documents as are conferred on a civil court by 1[the
Code of Civil Procedure, 1908 (5 of 1908)], and every proceeding before the
Board shall be deemed a judicial proceeding.
13. Registration and effect of agreement.–– (1) If the debtor and all or
any of the creditors come to an amicable settlement, the Board shall forthwith
reduce such settlement to writing in the form of an agreement setting forth the
amounts payable to each creditor and the manner in which and the time at
which they are to be paid. Such agreement shall be read out and explained to
the parties concerned, and shall be signed or otherwise authenticated by the
Board and the parties.
(2) An agreement thus made shall take effect as if it were a decree of a
civil court having jurisdiction in the area of the juridiction of the Board.
14. Debts, in respect of which no application for settlement is made, to
be void .–– Every debt due from a debtor who resides or holds any land within
the local area for which a Board is established under section 3 in respect of
which no application had been made under section 4 within the period speci-
fied in the said section 4, shall be extinguished.
15. Debts in respect of which suits or other proceedings are pending.––
The provisions of section 14 shall not apply to a debt in respect of which a suit
1. Substituted for “Code of Civil Procedure, Svt. 1977” by S.O. 1229 (E) dated 31.03.2020.
DEBTORS RELIEF ACT, 1976 493
or other proceeding pending in any civil or revenue court is transferred by that
court to the Board under sub-section (1) or sub-section (2) of section 29.
16. Powers to pass just and equitable orders in cases where creditor
does not agree to amicable settlement.––(1) Where, during the hearing of any
application made under section 4, any creditor refuses to agree to an amicable
settlement, the Board may, if it is of opinion that the debtor has made such
creditor a fair offer which the creditor ought reasonably to accept, proceed to
record such evidence as the parties may produce and pass such order as may
appear to it just and equitable :
Provided that if a debtor has paid back to his creditor in cash or kind or
both an amount equal to the principal sum and half of the principal sum, the
Board shall dismiss all claims shown outstanding against the debtor and all
such outstanding shall thereafter be deemed to have been fully discharged :
Provided further that if the Board finds after due enquiry, that such debtor
has paid more than the principal and one-half of the principal, the Board shall
pass a decree for the excess amount in favour of the debtor.
(2) Any party aggrieved by a final order of a Board under this Act may
prefer an appeal to the Appllate Authority to be appointed by the Government
having jurisdiction in the area, against such order within sixty days from the
date of the order and there shall be no further appeal :
Provided that in respect of the cases arising in any area specified in  the
proviso to section 4, the period of limitation shall be twice such period.
(3) An order passed under sub-section (1) or sub-section (2) shall be
executable as if it were a decree of a civil court having jurisdiction in the area of
the jurisdiction of the Board.
(4) A just and equitable order under this section shall include an order by
which a debtor is required to make payment by instalments keeping in view his
paying capacity.
(5) Whenever it is made to appear to the Government that a case decided
finally by a Board or an Appellate Authority involves a substantial question of
494 DEBTORS RELIEF ACT, 1976
law or a question of public interest it may call for the record of the case and
pass such order thereon as it thinks fit :
Provided that the Government shall not pass an order under this sub-
section against any person without giving him an opportunity of being heard;
Provided further that the provisions of section 18 shall apply to an order
passed by the Government under this sub-section.
17. Power of Board to decide questions arising on settlement of debts.–
–(1) Subject to the provisions of this Act, the Board shall have full powers to
decide any question which may arise in any proceedings under this Act.
(2) Any person aggrieved by an adjudication determining finally the rights
of the parties under this section may appeal therefrom to the Appellate Author-
ity to be appointed by the Government within a period of sixty days and in a
case of appeals arising out of areas mentioned in the second proviso to sec-
tion 4, twice such period, from the date of the order of such adjudication and
the decision of the Appellate Authority to be appointed by the Government in
appeal shall be final.
18. Bar of civil jurisdiction.––Notwithstanding anything contained in
any law for the time being in force and save as otherwise provided in this Act–
–
(1) no civil court shall have jurisdiction to settle, decide or deal with
any question or to determine any matter which is by or under this
Act or the rules made thereunder required to be settled, decided or
dealt with or to be determined by a Board or Appellate Authority to
be appointed by the Government ;
(2) no order of any Board or the Appellate Authority to be appointed
by Government shall be called in question in any civil court on any
ground whatsoever including that regarding to non-compliance with
the provisions of this Act or the fundamental principles of judicial
procedure.
19. Power of Board to review its order.––A Board may, on the applica-
tion of any person interested, review any order passed by it other than an
order passed in review and pass such as it thinks fit :
DEBTORS RELIEF ACT, 1976 495
Provided that it shall not under this section pass an order reversing or
modifving any order affecting any person interested without giving such per-
son an opportunity of being heard :
Provided further that no application for review shall be entertained if
presented more than two months after the date of the order which the person
interested seeks to get reviewed.
20. Agreements or orders passed by Board to supersede decisions of
civil court.––Any agreement under sub-section (2) of section 13 or an order
made under section 15 shall, in supersession of all previous decision of a civil
court in respect of the debts mentioned in it, be binding on the parties.
21. Court-fee on appeal.––A memorandum of appeal shall be accompa-
nied by a court-fee of rupes six.
22. Procedure in appeal.––In the hearing of the appeals made under this
Act, the Appellate to be appointed by the Government shall follow the proce-
dure provided in 1[the Code of Civil Procedure, 1908 (5 of 1908)], for the hearing
of appeals from original decrees so far as may be applicable.
23. Court-fees on applications.––Every application made under section
4, shall be accompanied by a court-fee of rupees three.
24. Settlement to be void.––Any settlement of debt due from a debtor to
any creditor arrived at after the establishment of a Board under section 3 for the
local  area in which he resides or holds land, shall be void and shall not be
recognised by any Board or civil court either as an acknowledgement or other-
wise unless it is certified by the Board under section 13.
25. Consolidation of applications.––(1) Where more than one applica-
tion has been made to the same or different Boards by or in respect of the same
debtor or creditor or one or more of the joint debtors, or joint creditors, the
Appellate Authority to be appointed by the Government shall, after holding
such enquiry as he thinks fit, direct that all such applications shall be dealt
with by any one of such Boards as may be specified in this direction.
(2) Where two or more applications for settlement of debts under section
4 are presented by or against the same person or where such separate applica-
1. Substituted for “Code of Civil Procedure, Svt. 1977” by S.O. 1229 (E) dated 31.03.2020.
496 DEBTORS RELIEF ACT, 1976
tions are presented against joint debtors or creditors, all such applications
shall be consolidated.
26. Power of transfer.––(1) Notwithstanding anything contained in this
Act, the Appellate Authority to be appointed by the Government may, on the
application of any of the parties and after notice to the parties and after hear-
ing such of them as desire to be heard, or of his own motion, transfer any
petition or other proceeding pending before any Board to any other Board
competent to try or dispose of the same.
(2) Where any petition or any other proceeding has been trtansferred
under sub-section (1), the Board which thereafter hears such petition or pro-
ceeding may, subject to any special direction, either rehear it or proceed from
the point at which it was transferred.
27. Continuation of proceeding on death of party.––If any party to the
porceedings before the Board dies, the proceeding shall, unless the Board
otherwise directs, be continued after legal representatives of such deceased
party are, as soon as may be, brought on the record.
28. The Board may summon any other person.––(1) The Board may, on
the application of the debtor or any creditor, summon before it, in the manner
prescribed, any other person known or suspected to have in his possession
any property belonging to the debtor or supposed to be indebted to the debtor;
or any other person whom the Board may deem capable of giving information
in respect of the debtor, his dealings or property and the Board may require
any such person to produce any documents in his custody or power relating to
the debtor, his dealings or property.
(2) If any person so summoned refuses to come before the Board at the
time appointed, or refuses to preduce any document, having no lawful impedi-
ment made known to the Board and allowed by it, the Board may by warrant
cause him to be apprehended and brought up before it for examination.
(3) The Board may examine any person so brought before it concerning
the debtor and his dealings and property.
29. Transfer of pending suits and proceedings to the Board.––(1) Any
suit or other proceeding for the recovery by a creditor of any debt against a
DEBTORS RELIEF ACT, 1976 497
person who is a debtor pending in any civil or revenue court shall be trans-
ferred by such court to the Board to which an application under section 4 lies.
(2) When any application under section 4 includes a debt in respect of
which a suit or other proceeding is pending before a civil or revenue court, the
Board may give intimation thereof to such court in the manner prescribed. On
receipt of such intimation the court shall transfer the suit or proceeding, as the
case may be, to the Board.
(3) When any suit or proceeding is transfered to the Board under sub-
section (1) or sub-section (2), the Board shall proceed as if an application
under section 4 had been made to it.
Explanation.––The word “proceeding” in this section includes an appeal, an
application for revision and an application for execution.
30. Application of Limitation Act.––Save as expressly provided in this
Act, 1[the provisions of the Limitation Act, 1963 (36 of 1963)], shall apply to all
claims in respect of debts in the proceedings under this Act as if such proceed-
ing, were proceedings in a suit in civil court.
31. Appearance of party before Board by agent or by legal practitio-
ner.–– In any proceedings under this Act, any person may be repressented by
an agent authorised in writing or, with the permission of the Board, by a legal
practitioner.
32. Members of Board deemed to be public servents.––The Chairman
and other members of the Board shall be deemed to be public servants within
the meaning of 2[secion 21 of the Indian Penal Code, 45 of 1860)].
33. Transfer of pending applications and proceeding to civil Courts.––
Notwithstanding anything contained in this Act, an application or proceeding
before any Board which has been dissolved under the provisions of this Act,
and in place of which no other Board has been established, shall be transferred
by the Government to such civil court having juridication in that area as the
Government may, by general or special order, specify, and shall be heard and
1. Substituted for “the provisions of the Jammu and Kashmir Limitation Act, Svt. 1995” by
S.O. 1229 (E) dated 31.03.2020.
2. Substituted for “section 21 of the Ranbir Penal Code, Svt. 1989” ibid.
498 DEBTORS RELIEF ACT, 1976
disposed of by the court in accordance with the provisions of this Act as if for
the expression ‘Board’, wherever occurring in this Act, the expression “court”
were substituted. Such court shall, for the purpose of this Act be deemed to be
successor-in-office of the Board so dissolved.
134. Omitted.
35. Penalty.––If any person in a proceeding under the Act––
(a) intentionally makes any false statement during the course of such
proceeding ; or
(b) intentionally produces before the Board any false document ; or
(c) files under section 8 a statement which is false or incorrect to his
knowledge ; or
(d) abets the doing of any act punishable under this section ;
such person shall be punished by the Chairman of the Board with fine which
may extend to one thousand rupees.
36. Power to make rules.––(1) The Government may, from time to time
make any rules consistent with the provisions of this Act to carry out the
purpose thereof.
(2) In particular and without prejudice to the generally of the foregoing
provisions, such rules may provide for all or any of the folowing matters,
namely:––
(a) the charges to be made by a Board for anything done under this
Act and the persons by whom and the manner in which such
charges shall be paid ;
(b) regulating the procedure before a Board and, for purposes of sec-
tion 35 before a Chairman of a Board ;
(c) the records to be kept and the returns to be made by a Board and
the manner in which such records and returns shall be maintained ;
1. Section 34 omitted by S.O. 1229 (E) dated 31.03.2020.
DEBTORS RELIEF ACT, 1976 499
(d) the allowance to be paid to members of a Board ;
(e) the particulars of the debts under sub-section (1) of section 9 ;
(f) the place at which and the manner in which an agreement shall be
executed and authenticated ;
(g) the form of order to be made under sub-section (1) of section 16 ;
and
(h) any other matter required to be prescribed under this Act.
37. Repeal and savings.––(1) The Jammu and Kashmir Distressed Debt-
ors Relief Act, Samvat 2006 is hereby repealed.
(2) Notwithstanding such repeal, nothing in this Act shall affect the
previous operation of the Act mentioned in sub-section (1) and the rules and
orders made thereunder.
–––––––
500 DEBTORS RELIEF ACT, 1976

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