The Travancore-Cochin Indebted Agricultarists Relief Act, 1956 (President's Act No.3 of 1956)

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THE TRA VANCORE-COCHIN INDEBTED 
AGRICULTURISTS RELIEF ACT, 1956. 
(President's Act III of 1956) 
CONTENTS. 
Short title. 
Definitions. 
Bar of Suits and applications. 
Payment of debt in instalments. 
Provision for interest. 
Deposit of debt into Court. 
Appeals. 
Presumption as to transfer of Immovable property 
of the debtor. 
Exclusion of time for limitation. 
Effect of payment or deposit under Section 4 or 
Section 6. 
Power to make rules. 
THE TRA V ANCORE-COCHIN INDEBTED 
AGRICULTURISTS RELIEF ACT, 1956. 
No. III OF 1956. 
ENACTED BY THE PRESIDENT IN THE SEVENTH YEAR 
OF THE REPUBLIC OF INDIA. 
An Act to give relief to tndebted agriculturists in the 
State of Travancore-Cochin. 
In exercise of the powers conferred by Section 3 of the 
Travancore-Cochin State Legislature (Delegation of Powers) 
Act, 1956, (29 of 1956) the President IS pleased to enact as 
follows:- · ~ 
1. Short title) extent and cQmmencement.-(1) This Act 
may be called the Travancore-Cochin Indebted Agriculturists 
Relief Act, 1956. 
(2) It extends to the whole of the State of Travancore­
Cochin. 
(3) It shall come into force on such date as the Govern­
ment may, by notification in the Gazette, appoint. 
2. Definitions.-In this Act, unless the context otherwise 
requires,-
( a) "Agriculturist" means a person who has an interest 
other than interest as a simple mortgagee in any agricultural 
or horticultural land, but does not include-
(i) any person liable to pay land revenue exceeding 
one hundred rupees per annum in any year after 1952-53; 
Republished m the Gazette Extraordmary, dated lOth September 1956. 
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( ii) any person assessed to profes~ion tax on income 
derived from a professiOn other than. ag~ICultm:al under any 
law governing municipal or local bodies m India. on a half­
yearly income of more than nine hundred rupees m any half­
year after 1952-53; 
(iii) any person assessed in any half-year after 1952-53 
to property or house tax .on an annual re~t~l value of not less 
than six hundred rupees m respect of bmldmgs ( othe~ than a 
building in which he lives) or lands other than agricultural 
lands under any law governing municipal or local bodies in 
India; 
(iv) any person assessed to sales-tax on a total turn­
over of not less than twenty thousand rupees in any year after 
1952-53 under the Travancore-Cochin General Sales-tax Act, 
1125 (XI of 1125), or under the law of any other State relating 
to sales-tax; 
(v) any person assessed to mcome-tax under the Indian 
Income-Tax Act, 1922 (II of 1922), in any year after 1950-51; 
(vi) any person assessed to agricultural income-tax 
in any year after 1950-51 under the Travancore-Cochin Agri­
cultural Income-tax Act, 1950 (XXII of 1950) , or under the 
law of any other State relating to agricultural income-tax; 
(vii) a firm registered under the Indian Partnership Act, 
1932 (9 of 1932), or a company as defined in the Companies 
Act, 1956 ( 1 of 1956) , or a corporatiOn formed in pursuance of 
an Act of Parliament of the United Kingdom or of any specwl 
Indian law; 
Explanation /.-Where a joint Hmdu family or tarwad 
tavazhi, or illom is an agriculturist, every coparcener or member 
of the tarwad, tavazhz, or illom, as the case may, be, shall be 
deemed to be an agriculturist, provided that he does not fall 
under any of the categories specified in sub-clauses (i) to (vi). 
Explanation ll.-The provisions of this Act shall not apply 
to any person who is not an agriculturist on the commence­
ment of this Act; 
(b) "debt" means any liability in cash or kmd, whether 
secured or unsecured, due from an agriculturist on the com­
mencement of this Act, whether payable under a .contract or 
under a decree or order of a Court, civil or revenue or other-
wise, but does not include- ' 
( i) any sum payable to the State or the Central 
Government or to ~my local authority; 
. . ( ii) any sum payable to any co-operative society 
mcl.udmg a land mortgage bank, registered or deemed to be 
registered under the Travancore-Cochin Co-operative Societir~ 
Act, 1951 (X of 1952), or to the Travancore Credit Bank 
constituted under the Travancore Credit Bank Act ] 113 
(IV of 1113), provided that the right of the society' or the 
Bank to recover the sum did not arise by reason of an assign­
ment made subsequent to the commencement of this Act; 
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( ni) any liability arising out of a breach of trust; 
( iv) any liability in respect of maintenance; 
( v) any liability in respect of wages or remuneration 
due as salary or otherwise for services rendered; or 
(vi) any liability incurred or arising under any c~i~ty 
or kuri registered or licensed under the Travancore Ch1tties 
Act, 1120 (XXVI of 1120), or the Cochin Kunes Act, 1107 
(VII of 1107). 
Explanation /.-Whereas a debt has been renewed or in­
cluded m a fresh document executed after the commencement 
of this Act, whether by the same debtor or by his heirs, legal 
representatives or assigns or by any other person acting on 
his behalf or in his interest or as a result of a partition, in 
favour of the same creditor or his he1rs, legal representatives 
or assigns or any other person actmg on his behalf or in hia 
interest or as a result of a. partition, the amount outstanding 
on the commencement of this Act and included in the document 
executed after such commencement shall alone be treated as 
the debt for the purposes of this Act. 
Explanation 11.-Where a debt has been split up after the 
commencemnt of this Act among the heirs, legal representa­
tives or assigns of a debtor or a creditor or as a result of a 
partition and fresh documents have been executed in respect 
of different portions of the debt, each of the different portions 
shall be a debt for the purposes of this Act. 
3. Bar of suits and applicatwns.-(1) No suit for recovery 
of a debt shall be instituted, and no application for execution 
of a decree in respect of a debt shall be made, against any agri­
culturist in any civil or revenue court before the expiry of six 
months from the commencement of this Act. 
Explanation /.-Where a debt is payable by an agriculturist ..._ 
jointly or jomtly and severally with a non-agriculturist, no suit 
or applicatiOn of the nature mentioned in this sub-section shall 
be instituted or made either against the non-agriculturist or 
against the agriculturist before the expiry of the period men-
tioned in this sub-section. 
Explanation 11.-For the purposes of this Act, a suit in 
which a decree in respect of a debt is prayed for shall be 
deemed to be .a suit for the recov.ery of a debt notwithstanding 
that other rehefs are prayed for m such suit and a decree shall 
be deemed to be a decree in respect of a debt notwithstanding 
that other reliefs are granted in such decree: 
Provided that a suit for possession of land shall not be 
deemed to be a s.uit for recovery of a. debt by reason merely of 
mesne profits bemg also prayed for m such suit: 
Provided further that nothing contained in this section 
shall apply to any portion of a decree other than that relating to a debt. 
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(2) Notw1thstandmg anything contained m sub-section 
( 1), where a creditor files a suit for recovery of a debt du~­
ing the period specified in sub-section ( 1) or after the. agri­
culturist has paid or deposited into Court the sums and n?-stal­
ments specified in sub-section ( 1) of Section 4 and Section 5 
and durmg the period when he is so entitled to pay, the Court 
shall in decreemg the suit direct the plamtiff to bear his own 
eosts and pay the costs of the defendant who is an agriculturist: 
Provided that nothmg contained m this sub-section shall be 
a bar to the Court passing any order as to costs as between 
the plaintiff and other defendants who are not agriculturists. 
4. Payment of debt in tnstalments.- ( 1) Notwithstanding 
any law or custom for the tlme bemg in force, or any contract, 
or any decree or order of Court to the contrary, any debt due 
by an agriculturist may be discharged by repayment of the 
principal amount of the debt outstanding in ten equal half­
yearly instalments together with such interest as would be 
payable under the provisiOns of Sectlon 5. The instalments 
shall be payable on or before the last day of February and 
August of each of the five years commencing on the com­
mencement of this Act. 
Explanatwn.-In the case of a decree, the amount decreed 
shall be deemed to be the principal. 
(2) VVhere in respect of a decree for debt passed before 
the commencement of this Act, a debtor fails to make any one 
of the payments specified in sub-section ( 1) and Section 5, the 
decree-holder shall be entitled to execute the decree in respect 
of the instalment which is in arrear. 
(3) In any sUit filed after the commencement of this Act, 
the Court m decreemg the sUit shall provide for the Immediate 
payment of such instalment or mstalments as would have be­
come due under the proviswns of sub-section ( 1) and Section 
5 and the balance in further instalments as specified therein. 
( 4) VVhere in any suit for recovery of a debt pending 
at the commencement of this Act, the debtor claims to be an 
agriculturist, the Court shall, if the debtor is an agriculturist, 
pass a decree for immediate payment of such instalment or 
instalments as would have become payable under the pro­
visions of sub-section (1) and Section 5 and the balance in 
further instalments as specified therein. 
(5) Nothing contained m this Act shall bar the Court 
from passing a decree or making an order m an application for 
execution of the decree under such terms and conditions as may 
be. more _favourable !o the debtor than those provided for in 
th1s Sect10n and SectiOn 5 either of Its own motion upon a con· 
sideration of all the circumstances of the case or upon an agree­
ment between the parties. 
( 6) Where m any suit to recover a debt or in any appli­
cation for the execution of a decree therefor the debt 1s pay-
able by an agriculturist jointly or Jointly and severally with a 
non-agriculturist, the Court shall pass a decree or make a~ 
order for the payment of the debt found due from the agri-
culturist as provided m this section and SectiOn 5 as against the 
agriculturist and make such provision in the decree or order 
against the non-agriculturist as the circumstances of the case 
may warrant. 
{ 7) The provisiOns of sub-section { 1) and Section 5 shall, 
for purposes of execution, be deemed to be a subsequent order 
of Court withm the meanmg of clause {b) of sub-section {1) 
of SectiOn 48 of the Code of C1vil Procedure, 1908 ( 5 of 1908) . 
5. ProvtSwn for mterest.- { 1) The interest outstandmg 
at the commencement of this Act on any debt shall be paid in 
ten equal half-yearly mstalments, each such mstalment being 
payable along with the correspondmg instalment of the princi­
pal amount specified m sub-section (1) of Section 4: 
Provided that the amount of the mterest payable by an 
agnculturist under sub-section { 1) shall not exceed one-half 
of the prmcipal amount outstanding at the commencement of 
this Act. 
{2) Notwithstanding anythmg contamed m sub-section 
( 1), no creditor shall be reqmred to refund any sum paid to 
him which IS m excess of the amount calculated as due under 
sub-sectiOn ( 1), nor shall such excess amount be liable to be 
adjusted towards any future mterest or the prmcipal amount 
of the debt. 
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(3) The mterest payable after the commencement of this 
Act shall be at the rate applicable to the debt under any law 
or custom for the time being m force or under any contract or 
under a decree or order of any Court, or at six per cent per tJ. 
annum simple mterest, whichever Is less, and the amount of 
interest accrued due on the principal amount outstanding till 
the date of payment of each of the instalments under sub-
section ( 1) of SectiOn 4 shall be payable along with such instal-ment. 
6. Dcpostt of debt mto Court.- ( 1) An agnculturist may 
deposit any of the mstalmcnts as provided m Sectwns 4 and 5 
mto the Court havmg jurisdiction to entertain a suit for re­
covery of the debt or mto the Court whi<'h passed the decree, 
as the case may be, and apply to the Court to record part­
satJsfaclwn of the debt. 
( 2) Where any such application is made, the Court shall 
pass an order recording part-satisfaction of the debt if the 
amount deposited is the correct amount. 
:3) The Court shall dismiss the application-
{ a) If the applicant is not an agriculturist; or ..._ 
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?s P ~n~~~r.y/\r ~. 
1(, \stant s.~Ci- -
(b) if the liabihty Is not a debt; or Ass 'T .\ , '"J .... 
(c) If the amount deposited is Insufficient and tM appli­
cant on being required by the Court to deposit the deficit 
amount within a time fixed by the Court, fails to do so. 
( 4) Any agncultunst entitled to make such deposit may, 
before the date on wh1eh any mstalment is due, apply to the 
Court having JUrisdiCtiOn under sub-sectiOn (1) for an ext~n­
SIOn of time for making the deposit of the whole or a_ny portiOn 
of such instalment and the Court may, after notice to the 
creditor, extend the time for payment of such instalment or part 
thereof for such period as it thinks fit. 
(5) The procedure laid down in the Code of Civil Pro­
cedure, 1908 (5 of 1908), for the tnal of suits shall, as far as 
may be, apply to applications made under this section. 
7. Appeals.-An appeal shall he from an order passed by a 
Court under SectiOn 6, as if such order relates to the execution, 
discharge or satisfaction of a decree within the meaning of 
SectiOn 47 of the Code of Civil Procedure, 1908 (5 of 1908). 
8. Presumptton as to transfer of unmovable property of the 
debtor.-(1) Every transfer of Immovable property made by a 
debtor entitled to the benefits of this Act after the commence­
ment of this Act and before the complete discharge of his debt, 
shall, in any suit or other proceeding with respect to such 
transfer, be presumed, until the contrary IS proved, to have been 
made With intent to defeat or delay the creditors of the trans­
feror. 
( 2) Where a debtor is entitled to the benefits of this Act 
has allowed, in collusiOn with another, his immovable property 
to be sold after the commencement of this Act through Court 
With a view to defeat or delay his creditors, the sale shall be 
voidable at the optwn of any creditor so defeated or delayed. 
9. Exclusion of time for lmtitation.-In computing the 
period of limitation for a smt for recovery of a debt or an 
application for the execution of a decree In respect of a debt, 
the time during which the institutiOn of the suit or the making 
of the application was barred under Section 3 shall be excluded. 
10. Effect of payment or depomt under Section 4 01· Sec­
tion 6.-Wh_e~e a debt_ i~ payable by an agru:;ulturist either by 
himself or JOintly or JOintly and severally with a non-agricul­
turist and where the agriculturist makes payment or deposits 
amount towards that debt as provided for in Sections 4 and 5 
or Section . 6, a fresh period of limitation shall be computed 
from the time when the payment or deposit was made both 
against the agriculturist and non-agriculturist. 
11. Power to make rules.-The Government may make rules 
for carrying out the purposes of this Act. 

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