The KERALA DEBTORS (TEMPORARY RELIEF) ACT, 1975

ACT 30 OF 1975
THE KERALA DEBTORS (TEMPORARY RELIEF) ACT, 1975 *
An Act to provide temporary relief to certain debtors in the State of Kerala.
Preamble. —WHEREAS it is expedient to provide temporary relief to certain debtors
in the State of Kerala;
BE it enacted in the Twenty-sixth Year of the Republic of India as follows: —
1.  Short title, extent and commencement. — (1) This Act may be called the Kerala
Debtors (Temporary Relief) Act, 1975.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force at once.
2. Definitions. — In this Act, unless the context otherwise requires, —
(1) "agricultural land" means land used for agriculture or horticulture, not being land
appurtenant to a residential building;
(2)  "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
other articles or things used for agriculture  or purposes ancillary  thereto and includes a
person who normally earns his livelihood by practising craft either by his own labour or by
the labour of the members of his family;
(3)  "creditor"  shall  include  the  heirs,  legal  representatives  and  assigns  of  the
creditor;
(4) "debt" means any liability in cash or kind, whether secured or unsecured, due
from or incurred by a debtor on or before the commencement of this Act, whether payable
under a contract, or under a decree or order of any court, or other wise, but does not include-
(a) any sum payable to—
(i)  the Government of Kerala or the Government of India or the Government
of any other State or Union territory in India or any local authority; or
(ii) the Reserve Bank of India or the State Bank of India or any subsidiary
bank within the meaning of clause (k) of section 2 of the State Bank of
India (Subsidiary Banks) Act, 1959 or the Travancore Credit Bank (in
liquidation)  constituted  under  the  Travancore  Credit  Bank  Act,  IV  of
1113; or
*Received the assent of the President on the 6 th day of October, 1975 and published in the Kerala
Gazette Extraordinary No. 602  dated 14th October, 1975.
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(iii) a corporation owned or controlled by the Government of Kerala or the
Government  of  any  other  State  or  Union  territory  in  India  or  the
Government  of  India  or  a  Government  company  as  defined  in  the
Companies Act, 1956; or
(iv) the Tea Board constituted under the Tea Act, 1953, or the Coffee Board
constituted under the Coffee Act, 1942, or the Rubber Board constituted
under the Rubber Act, 1947, or the Cardamom Board constituted under the
Cardamom Act, 1965; or
(v) any co-operative society, including a Land Mortgage Bank, registered or
deemed to be registered under the Co-operative Societies Act for the time
being in force; or
(b) any sum payable to any corresponding new bank specified in column (2) of
the First Schedule to the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970; or
(c) any liability arising out of a breach of trust or any tortious liability; or
(d) any liability in respect of maintenance, whether under a decree of court or
otherwise; or
(e) any liability in respect of wages or remuneration due as salary or otherwise for
services rendered; or
(f) any debt which represents the price of goods purchased for the purpose of
trade; or
(g) any liability for which a charge is provided under sub-clause (b) of clause (4)
of section 55 of the Transfer of Property Act, 1882; or
(h) any rent payable in respect of any building; or
(i) any rent or michavaram payable in respect of any land; or
(j) any debt or debts due to a widow at the commencement of this Act, provided
that the value of the property owned by her at such commencement, including
the principal amount of the debt or debts so due, does not exceed ten thousand
rupees.
Explanation.— For the purposes of this sub-clause, the house in which the widow
lives, her wearing apparel or similar personal belongings shall not be regarded as property; or
(k) any liability incurred or arising under a chitty or kuri which is registered or
licensed under the Travancore Chitties Act, 1120, or the Cochin Kuries Act,
VII of 1107, or conducted under any chit fund scheme, and which has not
terminated one year before the commencement of this Act:
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Provided that nothing in this sub-clause shall apply to the liability of a foreman
incurred or arising under any such chitty or kuri, where the foreman is a co-operative society
registered or deemed to be registered under the Co-operative Societies Act for the time being
in force.
Explanation.— For the purposes of this sub-clause a chitty or kuri shall be deemed
to have terminated—
(i) when the period fixed in the variola or vaimbu or kuripattika or the period
as altered by  a subsequent special resolution for the duration of the chitty
or kuri, has expired; or
(ii) when the legal representative of a deceased foreman or the guardian of a
foreman of unsound mind or the subscriber or the subscribers selected
therefore fails or fail to conduct the chitty or kuri or to make suitable
arrangements for the further conduct of the chitty or kuri; or
(iii) on the failure of the foreman to pay the prize amount to the subscriber
within one month from the due date thereof; or
(iv) on the failure of the foreman or foremen to conduct the chitty or kuri at
any instalment or on any other date before the next instalment as may be
agreed upon in writing by a majority of  the non-prized subscribers:
Provided that if there are more foremen than one and one or more of such foremen is
or are living and is or are not disqualified to conduct the chitty or kuri, the chitty or kuri shall
not be deemed to have terminated if there is provision in the variola or vaimbu or kuripattika
enabling the remain foreman or foremen to conduct the chitty or kuri or if the non-prized
subscribers agree by a special resolution to the conduct of the chitty or kuri by the remaining
foreman or foremen ; or
(l)  any debt exceeding three thousand rupees borrowed under a single transaction
and due before the commencement of this Act to any banking company as defined in the
Banking Regulation Act, 1949; or
(m)  any amount due on account of any goods to a financier who financed the
purchase of such goods and whose principal business is to finance the purchase of goods; or
(n)  any sum advanced for the purposes of agriculture by an institution receiving
financial  assistance  from  the  Agricultural  Refinance  Corporation  established  under  the
Agricultural Refinance Corporation Act, 1963.
Explanation I.— For the purposes of this clause, —
(i)  the liability of a surety who is a debtor shall be deemed to be a debt within the
meaning of this Act notwithstanding that the principal debtor is not a debtor
for the purposes of this Act;
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(ii)  where a debt has been split up in any manner whatsoever, whether before or
after the commencement of this Act, and fresh documents have been executed
in respect of different portions of the debt, each such different portion shall be
a debt.
Explanation II.— Where the debt is a liability in kind, the value of the commodity shall
be commuted at the market rate prevailing on the date on which the debt was incurred.
(5)  "debtor"  means  any  person  who  has  an  interest,  other  than  as  a  simple
mortgagee, in any agricultural land in the State of Kerala, from whom any debt is due and
includes—
(a) a landless labourer ;
(b) an artisan ; and :
(c) a kudikidappukaran,
but does not include —
(i)  any person assessed to sales tax on a turnover which in the aggregate is not
less than twenty thousand rupees in any two years within the three years
immediately preceding the commencement of this Act, under the Kerala
General Sales Tax Act, 1963, or the Central Sales Tax Act, 1956, or the
law of any other State relating to sales tax;
(ii)  any person assessed to income-tax under the Income-tax Act, 1961, in any
two  years  within  the  three  years  immediately  preceding  the
commencement of this Act and whose total income for the purposes of the
said Act exceeded eight thousand rupees per annum ;
(iii) any person assessed to agricultural income-tax in any two years within
the three years immediately preceding the commencement of this Act,
under  the  Agricultural  Income-tax  Act,  1950,  or  under  any  other  law
relating to agricultural income-tax, on an income exceeding eight thousand
rupees per annum.
Explanation.—Notwithstanding anything contained in the Indian Evidence Act, 1872,
where a creditor proves that his debtor is a person assessed to the tax mentioned in sub-clause
(i) or sub-clause (ii) or sub-clause (iii) for the period referred to in that sub-clause, the burden
of proving that such debtor does not fall under the category specified in that sub-clause shall
lie on the debtor ;
 (iv) a firm registered under the Indian Partnership Act, 1932, or a company as
defined in the Companies Act, 1956, or a corporation formed in pursuance
of an Act of Parliament of the United Kingdom or of any special Indian
Law.
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Explanation.—  For  the  purposes  of  this  clause,  the  term  "person"  shall  include  a
family, provided that sub-clauses (i) to (iii), in their application to a family consisting of not
less than five members, shall have effect as if for the turnover, total income or income
specified therein, twice such turnover, total income or income, as the case may be, were
substituted;
(6) "family" means a Hindu undivided  family  or  a  Marumakkathayam  tarward  or
thavazhi or an Aliyasanthana kudumba or kavaru or a Nambudiri illom;
(7) "interest" means any amount or other thing paid or payable in excess of the
principal amount borrowed or pecuniary obligation incurred, or where anything has been
borrowed in kind in excess of what has been so borrowed, by whatsoever name such amount
or thing may be called, and whether the same is paid or payable entirely in cash or entirely in
kind or partly in cash and partly in kind and whether the same is expressly mentioned or not
in the document or contract, if any;
(8) "kudikidappukaran" shall have the same meaning as in clause (25) of section 2 of
the Kerala Land Reforms Act,1963 :
(9) "landless labourer" means a person who does not hold any agricultural land and
whose principal means of livelihood is manual labour;
(10) "pay" with its grammatical variations,  includes deliver ;
(11) "principal amount" means the amount originally advanced, together with such
sum, if any, as has been subsequently advanced, notwithstanding any stipulation to treat any
interest as principal and notwithstanding that the debt has been renewed or included in a fresh
document, 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, and whether in favour of the same
creditor or his heirs, legal representatives or assigns or of any other person acting on his
behalf or in his interest.
3. Bar of suits and applications and other proceedings.— No suit for recovery of a debt
shall be instituted, no application for execution of a decree in respect of a debt shall be made
and no appeal, revision petition or application for review against any decree or order in any
such suit or application shall be presented or made in any civil or revenue court before the
expiry of one year from the commencement of this Act or such longer period as may be
specified by the Government by notification in the Gazette; and all such suits, applications,
appeals and petitions instituted, made or presented before such commencement and pending
at such commencement shall stand stayed for the said period.
Explanation I.— In this section, the term "suit" shall not include a claim to a set-off
made in a suit instituted by a debtor.
Explanation II.— For the purposes of this section, a suit in which a decree in respect
of  a  debt  is  prayed  for  shall  be  deemed  to  be  a  suit  for  the  recovery  of  the  debt,
notwithstanding that other reliefs are prayed for in 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:
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Provided that a suit or decree for possession of land shall be deemed to be a suit for
recovery of, or a decree in respect of, a debt by reason merely of mesne profits being also
prayed for or included in such suit or decree.
Explanation III.—Nothing in this section shall debar a decree-holder from enforcing
reliefs other than in respect of a debt, where the decree contains independent reliefs.
4. Presumption as to transfer of immovable property of debtor .— (1) Every transfer of
immovable property made by a debtor entitled to the benefits of section 3, made during the
period mentioned in that section shall, in any suit or other proceedings 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 transferor.
(2) Where a debtor entitled to the benefits of section 3 has in collusion with another
allowed his immovable  property to be sold during the period mentioned  in that section
through court or otherwise, with a view to defeat or delay his creditors, the sale shall be
voidable at the option of any creditor so defeated or delayed.
5. Exclusion from benefits .— Notwithstanding anything contained in this Act, where a
debtor entitled to the benefits of section 3, with intent to defeat or delay his creditor or
creditors, has made any voluntary transfer of any interest in immovable property during the
period mentioned in the said section, such debtor shall not be entitled to the benefits of that
section.
6. Limitation.— In computing the period of limitation for a suit for recovery of a debt
or an application for the execution of a decree in respect of a debt or an appeal, revision
petition or application for review against any decree or order in any such suit or application,
the time during which the institution of the suit or the making of the application or the
presentation of the appeal or petition was barred under section 3 shall be excluded.
7. Interest not to accrue in respect of debts.— No interest shall accrue during the period
mentioned in section 3 in respect of a debt due at the commencement of this Act from a
debtor entitled to the benefits of section 3.
8. Act to override other laws, contracts, etc .— The provisions of this Act shall have
effect  notwithstanding  anything  in  consistent  therewith  contained  in  the  Code  of  Civil
Procedure, 1908 (Central Act 5 of 1908), or in any other law for the time being in force, or in
any custom, usage or contract, or in any decree or order of a court or other authority.
9.  Power to make rules .— (1) The Government may, by notification in the Gazette,
make rules for carrying out the purposes of this Act.
(2) Every rule made under this Act shall be laid, as soon as may be after it is made,
before the Legislative Assembly while it is in session for a total period of fourteen 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  so  laid  or  the  session  immediately  following,  the
Legislative Assembly makes any modification in the rule or decides that the rule should not
be made, the rule shall thereafter have effect only in such modified form or be of no effect, as
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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.
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