The KERALA FISHERMEN DEBT RELIEF COMMISSION ACT, 2008

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THE KERALA FISHERMEN DEBT RELIEF COMMISSION ACT, 2008
ACT 18 OF 2008
CONTENTS
Preamble.
Sections:
1.  Short title and commencement.
2.  Definitions.
3.  Constitution of the Commission.
4.  Term of the Commission and the conditions of service of the members.
5.  Powers and duties of the Commission.
6.  Declaration as disaster affected area.
7.  Application for debt relief.
8.   Sitting of the Commission.
9.  Special provisions in respect of settlement of certain loans taken by a 
fisherman of disaster affected area.
9A. Settlement of loans taken for fishing equipments that are damaged due to
sea erosion or other disasters.
10. Re-scheduling of loans taken by a fisherman from financial institutions.
11. Bar of suits, applications, criminal proceedings and other proceedings.
12. Payment of debt in instalments.
13. Annual report to be laid before the Legislative Assembly.
14. Accounts and Audit.
15. Overriding effect of the Act.
16. Members of the Commission to be public servant.
17. Protection of action taken in good faith.
18. Bar of jurisdiction of Civil Court.
19. Power to remove difficulties.
20. Power to make rules.
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[Translation in English of  “2008-ലെ കേ	രള മത്സ്യലെൊഴിൊളി 	ടൊശ്വൊസ 	മ്മീഷന്‍ ആക്റ്റ്"  published
under the authority of the Governor]
ACT 18 OF 2008 
THE KERALA FISHERMEN DEBT RELIF COMMISSION  ACT, 2008 *
An Act to provide for urgent relief to the fishermen who are in distress due to indebtedness,
by constituting a Commission for recommending relief measures to such fishermen and
for solving their problems through conciliation negotiation and adjudication and for
matters connected therewith or incidental thereto.
Preamble.—WHEREAS, majority of the traditional fishermen, earning livelihood by
fishing in sea and in inland waters, are now entrapped in great indebtedness;
AND WHEREAS, loan was obtained in large scale from various agencies, banks and
individuals for the purchase of fishing equipments and the situation of inability to repay
the debt exist for years due to disgust in production, fall in price and unemployment and
exploitation by intermediaries and the liability of debt has been accruing; 
AND WHEREAS, the liability of fishermen is increasing due to natural calamities,
sea erosion, Tsunami and the ruins due to monsoon etc., occurring again and again, the
loss of work and the losses caused to the fishing equipments etc.;
AND WHEREAS, they are entrapped in great indebtedness and are unable to repay
their loan obtained for years with interest;
AND WHEREAS, it is expedient to provide for urgent relief to the fisherman who
are in distress due to indebtedness by constituting a Commission for recommending
appropriate relief measures to such fishermen and for solving their problems through
conciliation  negotiation  and  adjudication  and  for  matters  connected  therewith  or
incidental thereto;
BE it enacted in the Fifty-ninth Year of the Republic of India as follows:—
1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  Kerala
Fishermen Debt Relief Commission Act, 2008.
(2) It shall come into force at once.
2. Definitions.—In this Act, unless the context otherwise requires,—
(i) 'appropriate level of debt' means the amount of debt to be repaid by the
debtor as determined by the Commission under clause (b) of sub-section (1) of section 5
of this Act;
(ii) 'Commission' means the Kerala State Fishermen Debt Relief Commission
* Received the assent of the Governor on the 9 th day of April, 2008 and published in the Kerala Gazette
Extraordinary No. 729 dated 10th April, 2008.
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constituted under section 3;
(iii) 'Co-operative society' means a society registered or deemed to have been
registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969);
(iv) 'Creditor' means any person engaged in money lending, whether under a
licence or not, his heirs, legal representatives, assignees, middle men and includes any
other person as may be notified by the Government;
(v) 'debt' means any liability, in money, whether secured or unsecured, due from
a fisherman whether payable under a contract, or under a decree or order of any Court or
Tribunal or otherwise and includes,—
(a) any sum payable to—
(i) an institutional creditor;
(ii) a co-operative society;
(iii) a fishermen society;
(b) any sum received from a creditor by a fisherman;
(c) any type of loan taken by a fisherman from financial institutions and
specified by the Government by notification;
but does not include any loan amount taken by a fisherman for commercial purposes or
luxury other than fishing purposes to augment his income and the amount payable to
Central or State Government or  other State Governments or Governments  of Union
Territories and the amount due to Local Self Government Institutions, Statutory bodies,
Central or State Public Sector Undertakings and other Institutions as may be specified by
the Government by notification;
(vi) ‘disaster affected area' means districts/district or the fishermen zones
forming part thereof in the State, declared by the Government under section 6, for the
purpose of this Act, on the recommendations of the Commission;
(vii) 'district' means a revenue district;
(viii) 'fair rate of interest' means the rate of interest determined by the
Commission under clause (b) of sub-section (1) of section 5 of this Act;
(ix) 'financial institution' means any financial institution constituted by or under
any Central Act or State Act for the time being in force and owned and  controlled by the
Government;
(x) ‘fish’ means various bio-aquatic resources caught from sea or backwater or
other reservoirs of water and also includes any other acquatic resources as may be
specified by the Government by notification;
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(xi)  ‘fishermen  welfare  society’ means  society  constituted  under  the  Kerala
Fishermen Welfare Societies Act, 1980 (7 of 1981);
(xii) 'fishing' means,—
(a) fishing by traditional method or by using traditional or mechanised
vessels;
(b) sale of sea water/fresh water/saline water fish products by the family
members of a fisherman by travelling to various places by two wheelers or by head load,
but does not include fishing by using mechanized boat, for which licence has to be taken
under section 6 of the Kerala Marine Fishing Regulation Act, 1980 (10 of 1981) and as
may be specified by the Government by the notification.
(xiii) 'fisherman' means, a person  who accept fishing as the foremost means of
livelihood and whose annual income does not exceed the annual income limit fixed by
the Government from time to time and it includes the widow of a fisherman;
(xiv) 'Government' means the Government of Kerala;
(xv) 'interest' means any amount payable in  excess of the  principal amount
borrowed or pecuniary obligation incurred, by whatsoever name such amount may be
called, whether the same is expressly mentioned or not in the document or contract, if
any;
(xvi) 'institutional creditor' means 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
Bank) Act, 1959 or any Nationalised or Scheduled Bank;
(xvii) 'member' means a member of the Commission and includes the
Chairperson;
(xviii) 'penal interest' means any amount payable in excess of interest on a debt;
(xix)  'prescribed' means prescribed by rules made under this Act;
(xx)  'principal amount' means the amount originally advanced together with the
amount, if any, as has been subsequently advanced, notwithstanding any stipulation to
treat any interest as capital and notwithstanding that the debt has been renewed, whether
by the same fisherman or by his heirs, assignees, or legal representatives or by any other
person acting on his behalf or on his interest, and whether in favour of the same creditor
or his heirs, assignees or of any other person acting on his behalf or on his interest;
(xxi) 'Secretary' means the Secretary to the Commission appointed under sub-
section (4) of section 3.
3. Constitution of the Commission .— (1) For the purpose of exercising the powers
and discharging the duties under this Act, the Government shall, as soon as may be after
the commencement of this Act, by notification in the Gazette, constitute a Commission
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by name, "The Kerala State Fishermen Debt Relief Commission".
(2) The Commission shall consists of five members, namely:—
(i) a retired High Court Judge — Chairperson;
(ii) an expert in fisheries, social, technical and financial
 administration —Member;
(iii) three representatives of fishermen —Members.
(3) The Chairperson and members shall be nominated by the Government.
(4) The Government shall, appoint a Secretary and other employees as may be
necessary, to assist the Commission in such manner as may be prescribed.
(5) In the discharge of their duties, the Secretary and other employees
referred  to  in  sub-section  (4)  shall  be  subject  to  the  administrative  control  of  the
Chairperson.
4. Term of the Commission and the conditions of service of the members .—(1) The
term of the Commission shall be three years:
Provided that, the Government, as it deems necessary, may extend the term to such
period.
(2) A member may, by writing in his own hand addressed to the Government,
resign his office at any time.
(3)  A  vacancy  arising  by  reason  of  resignation  of  any  member  of  the
Commission under sub-section (2) or otherwise shall be filled up within three months in
accordance with the provisions contained in section 3 of this Act:
Provided that the person so appointed shall hold office only for the remaining
period of the term of the person, in whose place he is appointed.
(4) Government may remove any member, if he,—
(a) is declared as an undischarged insolvent;
(b) becomes incapable of continuing as such, due  to physical or mental
disability;
(c) becomes unsound mind and stands so declared by a court of competent
jurisdiction;
(d)  has  been  convicted  for  an  offence,  which  in  the  opinion  of  the
Government, involves moral turpitude or financial irregularities;
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(e) has, in the opinion of the Government, abused his official position so as
to render his continuance in office prejudicial to the public interest;
(f) has, in the opinion of the Government committed nepotism or corruption.
(5) The Commission shall regulate its own procedure for the conduct of its
business.
(6) The salary, allowances and other conditions of service of the Chairperson
and members shall be such as may be prescribed.
5. Powers and duties of the Commission.—(1) The Commission shall have all such
powers as are necessary for achieving the objects of this Act, and in particular,—
(a) to recommend to the Government on application or otherwise, after such
enquiry as the Commission may deem fit, and on the basis of the general criteria  as may
be prescribed by the Government to declare any districts or district or fishermen zone
forming part thereof as disaster affected area for a proposed period;
(b) to determine, in the case of creditors other than institutional creditors, a
fair rate of interest and an appropriate level of debt, as the commission may consider just
and reasonable to be payable by the indebted fisherman in the disaster  affected area;
(c)  to  undertake  conciliation  for  the  settlement  of  disputes  between  the
indebted fishermen and the creditors other than institutional creditors, on the basis of the
fair rate of interest and appropriate level of debt determined under clause (b);
(d) to adjudicate  the disputes between indebted fishermen  in the  disaster
affected area and the creditors, other than institutional creditors, and to pass awards
which shall be binding on both parties:
Provided that before passing an award under this clause the creditor shall be given
an opportunity of being heard;
(e) to enter into negotiations with the creditors for waiving  loan, for granting
interest rate relief, for rescheduling the loan or for providing loan moratorium to the
fishermen in the disaster affected areas;
(f) to recommend the Government regarding the extent and the manner in
which the debt relief to be granted to the fishermen;
(g) to recommend to the Government or Government agencies to take over
the whole or part of the debt and exonerate the fishermen from the consequences of the
debt;
(h) to recommend to the Government to do such acts as may be necessary to
ensure that future debt reliefs  of the fishermen are met through such agencies, as may be
prescribed;
(i) to furnish periodical reports to the Government generally on any matter
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pertaining to fishermen’s indebtedness; 1[xxxx]
2[(j) to recommend the Government to take over the debt of fishermen under
sub-section (1) of section 9A; 
(k) to issue orders to the Fishermen Co-operative Society for sanctioning new
loan to fishermen, under sub-section (2) of section 9A; and 
(l) to perform such other functions and exercise such other powers, as may be
prescribed.]
(2) Issue orders keeping in abeyance  the repayment of all debts of fishermen in
the disaster affected areas to the creditors other than to institutional creditors considering
the shortage in the availability of fish, fall in price, loss due to natural calamity etc. for a
period of time limit not exceeding the period between six months and one year:
Provided that the issuance of orders shall be subject to the awards and directions of
Commission under sub-section (1).
(3) Notwithstanding anything contained in any other provisions of this Act, the
limit of debt relief granted to a fisherman by way of waiver in the principal,
interest and penal  interest, shall not exceed the limit as may be fixed by the
Government from time to time.
(4) An award passed by the Commission under clause (d) of sub-section (1)
shall be final and shall not be called in question in any court.
(5) The awards of the Commission as per clause (d) of sub-section (1) may be
executed as a decree of Civil Court under the provisions of Code of Civil Procedure,
1908 (Central Act 5 of 1908).
(6) The Commission shall, for the purpose of exercising the powers conferred
by or under this Act, have all the powers of a Civil Court while trying a suit under the
Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following
matters, namely:—
(a) summoning and enforcing the attendance of any person and examining
him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavit;
(d) issuing commission for the examination of witnesses or for  local
investigation;
(e) inspecting any property or thing concerning with any decision has to be
taken;
1.  Omitted by Act 38 of 2018 (w.e.f. 20.10.2018).
2.  Substituted by Act 38 of 2018 (w.e.f. 20.10.2018).
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(f) requisitioning of any public record or copy thereof from any court,
authority or office; and
(g) any other matter which may be prescribed.
1[(7) If any person, other than institutional creditor and financial institution, takes
any action against any provision of sub-section (2) or section 9A or section 11 or any order
or  award  issued  by  the  Government  or  the  Commission  under  such  provisions,  the
Commission shall have the power to recommend disciplinary action against him and
impose a fine not exceeding one lakh rupees and to recommend to the Government to take
prosecution proceedings: 
Provided that before taking disciplinary action or imposing fine or recommending
prosecution proceedings, the person concerned shall be given a reasonable opportunity of
being heard before the Commission and the Commission Chairperson shall be present in
the bench constituted under sub-section (4) of section 8 to initiate such proceedings.]
6.  Declaration as disaster affected area .—(1) As soon as after the receipt of a
recommendation under clause (a) of sub-section (1) of section 5, Government shall take
appropriate decision within the time limit as may be prescribed and accordingly may
declare the concerned Districts or District or fishermen zones forming  parts thereof as
disaster affected area.
(2) Notwithstanding anything contained in any other provisions of this Act,
with respect to all debts of the fishermen till 2[31st day of December, 2008] the entire
State of Kerala shall be deemed as disaster affected area.
7. Application for debt relief .— A fisherman claiming any debt  relief under this
Act, shall file an application before the Commission in such manner and in such form,
as may be prescribed.
8. Sitting of the Commission.—(1) The Commission shall hold its sittings at such
places and at such time as may be determined by it:
Provided that the Commission shall hold its sittings in the respective district or
districts declared as disaster affected area for considering matters related to the disaster
affected area.
(2) The Commission may while holding sitting in a district, invite the following
persons as observers to attend its proceedings, namely:—
(a) the Members of Lok Sabha, representing the concerned  constituencies of
the district;
(b)  the  Members  of  Legislative  Assembly  representing  the  concerned
c onstituencies of the district;
(c) the District Collector;
1.  Added by Act 38 of 2018 (w.e.f. 20.10.2018).
2.  Substituted by Act 38 of 2018 (w.e.f. 20.10.2018).
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(d) the District Panchayat President;
(e) the Chairpersons of the concerned Municipalities and Presidents of the
Grama Panchayats and Block Panchayats of the district; and
(f)  representatives  nominated  by  the  Government  from  the  fishermen
organisations of the concerned district.
(3) The quorum for the sitting of the Commission shall be 1[two].
(4) The Commission may, in appropriate cases as it deems fit, hold sittings in
districts by constituting a Bench consisting of  2[two] or more members:
3[Provided that either the Commission Chairperson or  a Commission member
who is an expert in fisheries,  social, techinical and financial administration shall be
one of the members of the Bench so constituted.] 
9.  Special  provisions  in  respect  of  settlement  of  certain  loans  taken  by  a
fisherman of disaster affected  area.— (1) Notwithstanding anything contained in this
Act or in any other law  or contract or decree or order of any Court or Tribunal, a
member  authorised  by  the  Commission  shall  have  power,  through  mutual
understanding to, —
(a) reschedule short-term loans into medium term loans and medium term
loans into long term loans availed of by the fisherman of a disaster affected area from
commercial banks or other scheduled banks; or
(b) provide necessary facilities for one time settlement of loans falling under
the category of non-performing assets, as per the guidelines issued by the Reserve Bank
of India; or
(c) waive interest or  penal interest, or both, as per the norms fixed by the
Reserve Bank of India, with the concurrence of the Reserve Bank of India and the
National Bank for Agriculture and Rural Development.
(2) Where any settlement of loan is made under sub-section (1), the fisherman
shall be bound to repay such loan with interest to the bank within the period as per the
settlement provision.
4[9A. Settlement of loans taken for fishing equipments that are damaged due to sea
erosion or other disasters.—(1) Notwithstanding anything contained contrary to this in
this Act, if the Fisheries Deputy Director concerned reports to the Commission that the
net or traditional or mechanised vessels used for fishing by the fishermen in the fishing
villages of disaster affected area or otherwise, is lost or irrepairably damaged due to sea
erosion or other disasters, the Commission may recommend to the Government to take
over the debt not exceeding the maximum amount fixed from time to time through
1.  Substituted by Act 4 of 2014 (w.e.f. 16.05.2013).
2.  Substituted by Act 4 of 2014 (w.e.f. 16.05.2013).
3.  Substituted by Act 4 of 2014 (w.e.f. 16.05.2013).
4.  Inserted by Act 38 of 2018 (w.e.f. 20.10.2018).
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Gazette Notification regarding repayment of loan. 
(2) The Commission may issue orders to the Fishermen Co-operative Society
concerned for granting new loan to the fishermen for acquiring new fishing equipments
for replacing the lost or irrepairably damaged and accordingly the society concerned
shall take steps for granting new loan.
(3) No person other than institutional creditor and financial institution shall take
any fresh steps against the fisherman for the recovery of the arrears to be paid by such
fisherman until the Government issue orders taking over the debt on the basis of the
recommendation of the Commission under sub-section (1), or the Commission finds that
not eligible for debt relief and any suit, application, appeal, petition or any other action
initiated or being proceeded shall be kept in abeyance. 
Explanation.—“Fishing Village" means a fisheries Village notified under section 3
of the Kerala Fishermen Welfare Societies Act, 1980 (Act 7 of 1981).]
10. Re-scheduling of loans taken by a fisherman from financial institutions.— (1)
Notwithstanding anything contained in this Act or in any other law or contract or
decree or order of any Court or Tribunal, the Commission may reschedule the recovery
of loans availed by the fisherman of a disaster affected area due on or before the date of
declaration as disaster affected area under section 6 from any financial institution
owned or fully controlled by the Government.
(2) Where the rescheduling of the loan is made under sub-section (1), the
fisherman shall be bound to repay such loan with interest to the financial institution
concerned within the period allowed by Commission:
Provided  that  the Commission may,  on application by the  fisherman,  exempt
repayment for such rescheduled period, by order, for reasons to be recorded:
Provided further that the fisherman shall be bound to repay the same on such later
dates as may be fixed by the Commission.
11. Bar of suits, applications, criminal proceedings and other proceedings.—  No
suit for recovery of debt shall be instituted, or application for execution of a decree in
respect of a debt shall be made against  a fisherman residing in a disaster affected area
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 against such a fisherman in any
Civil Court, or Tribunal or other authority and such suits, applications, appeals and
petitions instituted or made against such a fisherman before the date of declaration of a
district or part thereof as a disaster affected area and pending on such date shall stand
stayed, for such period as the Commission may recommend in that behalf.
12. Payment of debt in instalments.—(1) Notwithstanding anything contained in
any law or contract or in any decree or Order of any Court or Tribunal, a fisherman of a
disaster affected area may discharge his debts in suitable instalments together with fair
rate  of  interest  as  recommended  by  the  Commission  on  the  principal  amount
outstanding at the time of each payment in the manner as may be directed by the
Commission and on payment of the same in the manner directed by the Commission,
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the whole debt shall be deemed to have been discharged.
(2) Where any instalment of a debt is not paid on the due date as directed by the
Commission, the creditor shall be entitled to recover the same in the manner as may be
determined by the Commission:
Provided that before taking a decision by the commission under this section, the
fisherman shall be given an opportunity of being heard.
13. Annual report to be laid before the Legislative Assembly.—(1)  The
Commission shall prepare a report of its function of that year under this Act and the
same shall be submitted to the Government in such form on or before such date as may
be prescribed.
(2) The Annual Report submitted to the Government by the Commission under
sub-section (1) shall be laid before the Legislative Assembly as soon as may be, after
the same is received by the Government.
14.  Accounts and Audit .—(1) The Commission shall maintain proper accounts
and other relevant records and prepare an annual statement of accounts in the form as
may be prescribed.
(2) The accounts of the Commission shall be audited annually and the audit
report shall be laid before the Legislative Assembly.
15. Overriding effect of the Act .— The provisions of the Act or any rule or order
made thereunder shall have effect, notwithstanding any thing inconsistent therewith
contained in any law, other than this Act, or any instrument having effect by virtue of
any law other than this Act.
16. Members of the Commission to be public servant.—Every member of the
Commission nominated under sub-section (1) of section 3 and the Secretary and other
employees appointed under sub-section  (4) shall be deemed to be a public servant
within the meaning of section 21 of the Indian Penal Code  1860 (Central Act 45 of
1860).
17. Protection of action taken in good faith.—No suit or legal proceeding shall lie
against any member of the Commission or Secretary or other Officers for anything
which is done or purported to be done in good faith under this Act.
18. Bar of jurisdiction of Civil Court .—No Civil Court shall have jurisdiction to
settle, decide or deal with any question or to determine any matter which is by or under
the Act or the rule made thereunder are required to be settled, decided or dealt with or
to be determined by the Commission or the Government:
Provided  that  nothing  in  this  section  shall  be  applicable  to  the  execution
proceedings under sub-section (5) of section 5.
19. Power to remove difficulties.— (1) If any difficulties arises in giving effect to
the provisions of this Act, the Government may, by order, as occasion may require, do
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anything  not  inconsistent  with  the  provision  of  the  Act  which  appears  to  them
necessary for the purpose of removing difficulties:
Provided that no such order shall be made after the expiry of two years from the
date of commencement of this Act.
(2) Every order made under this section shall be laid before the Legislative
Assembly.
20. Power to make rules.— The Government may, by notification in the Gazette,
make rules to carry out the provisions of this Act.
(2) Every rule made under this section, 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 the case may be; so however that any such modification or
annulment shall be without prejudice to the validity of any thing previously done under
that rule.
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