LexThe Maharashtra Debt Relief Act, 1975
Maharashtra · state statute
Open in Lexace · Ask the AI about this act1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 1
THE MAHARASHTRA DEBT RELIEF ACT, 1975
[Text as on 15th July 2024]
———————
CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
REVIVAL OF DEBTS
3. Revival of all discharged debts under Ordinance VII of 1975.
CHAPTER III
LIQUIDATION OF CERTAIN DEBTS
4. Discharge of certain debts and consequences thereof.
5. Prohibition against disposal of pledged property, etc. and penalty.
6. Power of certain officers to enforce delivery of possession of property to debtor.
7. Creditor may dispute debtor’s claim.
8. Power of entry and search.
9. Creditor required to pay value of pledged property in certain cases.
10. Power of Authorised Officer to impose fine for frivolous or vexatious applications.
11. Bar of jurisdiction.
12. Suits involving issues required to be decided under this Act.
13. Agreement for labour in lieu of debt to become void.
CHAPTER IV
MORATORIUM ON DEBTS OF WORKERS
14. Moratorium on debts of workers in certain cases.
14A. Temporary duration of Chapters IV and V.
CHAPTER V
MORATORIUM ON EXECUTION OF DECREES AGAINST SMALL FARMERS
15. Stay of proceedings in case of certain decrees.
16. Release of persons in detention in civil prison.
17. Relief against default in payment of installments.
18. Computation of time for execution.
19. Payment of certain decrees.
20. Transfer by small farmer to be voidable.
2 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
21. Restriction on amount of claim and interest in certain cases.
CHAPTER V-A
ADJUSTMENT OF DEBTS OF CERTAIN FARMERS AND WORKERS
22. Commencement of Chapter V-A.
23. Definitions.
24. Application for adjustment of debts.
25. Every creditor and debtor to file true and correct statement before Court.
26. Assignee from non-debtor not entitled to benefit of this chapter.
27. Application for recording settlement.
28. Service of notice on debtor and creditor to submit statement of debts.
29. Debts in respect of which no application for adjustment or settlement is made to be
extinguished.
30. Duties of debtors and creditors.
31. Preliminary issues.
32. Examination of creditor and debtor.
33. Mode of taking accounts.
34. In certain cases rent may be charged in lieu of profits.
35. Power of Court to declare certain transfers to be in the nature of mortgage.
36. Provisions of section 35 not to apply to certain transfers and transferees.
37. Court’s duty to determine particulars, value etc. of property.
38. Fraudulent alienations or encumbrances void.
39. Paying capacity of debtor.
40. Debts payable by debtor to be scaled down.
41. Award.
42. Ex-parte proceeding, if any party does not appear.
43. Award to be registered.
44. Execution of award.
45. Postponement of payment of installment in case of remissions, etc.
46. No alienation by debtor before discharge of debts valid.
47. Court may order sale of debtor’s property in liquidation of his debts.
48. Legal practitioners excluded from appearance.
49. Appeals.
50. Power of District Judge to refer for disposal certain appeals to Assistant Judge or Civil
Judge empowered to hear appeals.
51. Court-fees.
52. Notice how served.
53. Provisions of Civil Procedure Code to apply to proceedings.
54. Bar of civil suits or proceedings.
55. Period of proceedings before courts under this chapter to be excluded.
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 3
56. Alienation of standing crop, etc., before repayment of loan prohibited.
57. Power to make rules.
58. Further exemptions.
59. Debts adjusted under any other laws not to be further adjusted under this Chapter.
CHAPTER VI
EXEMPTIONS AND REPEALS
60. Exemptions.
61. Repeal of Mah. Ord. VII of 1975 and savings.
4 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
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LIST OF AMENDMENT ACTS
1. Amended by Mah. 40 of 1977
2. Amended by Mah. 18 of 1979 (15-8-1979)
3. Amended by Mah. 2 of l9841 (21-8-1983)2
4. Amended by Mah. 1 of 1988 (21-8-1987)3
1 Maharashtra Ordinance XX of 1983 was repealed by Mah. 2 of 1984.
2 Section 3 of Mah. 2 of 1984 reads as under :—
“3. Consequences of retrospective amendment. — (1) It is hereby declared that Chapters IV and V of the principal
Act, which were to expire after the 21st August 1983, having been retrospectively extended by this Act from that date upto and
inclusive of the 21 st August 1985, with power to the State Government to extend their duration further for a period, not
exceeding two years, by notification in the Official Gazette, shall not be deemed to have expired at any time, and all their
provisions as amended by this Act shall be deemed to be valid, effective and continuously in force.
(2) It is hereby further declared that anything done, including any proceeding s taken or any recovery made, by any
person during the period from the 22 nd August 1983 to the date immediately preceding the date of publication of this Act in
the Official Gazette (both inclusive), which is inconsistent with the provisions of Chapters IV and V of the principal Act as
amended by this Act, shall be deemed to be null and void, and anything done during the said period which is consistent with
the said provisions shall be deemed to be valid, effective and continuously in force.”
3 Section 3 of Mah. 1 of 1988 reads as under :—
“3. Consequences of retrospective amendment. — (1) It is hereby declared that Chapters IV and V of the principal
Act, which were to expire on 21 st August 1987, having been retrospectively extended by this Act from that d ate upto and
inclusive of the 21 st August 1989, with power to the State Government to extend their duration further for a period, not
exceeding two years, by notification in the Official Gazette, shall not be deemed to have expired at any time, and all the ir
provisions as amended by this Act shall be deemed to be valid, effective and continuously in force.
(2) It is hereby further declared that anything done, including any proceedings taken or any recovery made, by any
person during the period from the 22 nd August 1987 to the date immediately preceding the date of publication of this Act in
the Official Gazette (both inclusive), which is inconsistent with the provisions of Chapters IV and V of the principal Act as
amended by this Act, shall be deemed to be null and void, and anything done during the said period which is consistent with
the said provisions shall be deemed to be valid, effective and continuously in force.”
Note .- The date mentioned in the bracket indicates the date of commencement of the Act.
6 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 7
MAHARASHTRA ACT NO. III OF 19761
[THE MAHARASHTRA DEBT RELIEF ACT, 1975.]
[This Act received the assent of the President on the 3rd January 1976; assent was first published
in the Maharashtra Government Gazette, Part IV, on the 3rd January 1976.]
An Act to provide for relief from indebtedness to certain farmers, rural artisans, rural
labourers and workers.
WHEREAS, both Houses of the State Legislature were not in session;
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed which
rendered it necessary for him to take immediate action to provide for relief from indebtedness to
certain farmers, rural artisans, rural labourers and workers in the Sta te of Maharashtra; and for that
purpose promulgated the Maharashtra Debt Relief Ordinance, 1975 (Mah. Ord. VII of 1975), on
22nd day of August 1975 ;
AND WHEREAS it is now considered that relief from indebtedness should be restricted to
liabilities arising out of loans only and debts of workers who hold immovable property the market
value of which does not exceed twenty thousand rupees should stand liquidated, and the debts of
workers who hold such property the market value of which exceeds twenty thousand rupees but does
not exceed forty thousand rupees should receive moratorium for a temporary period ;
AND WHEREAS it is expedient to replace the said Ordinance by an Act of the State Legislature
after carrying out therein the amendments as hereinafter provided for securing the above purposes and
other purposes hereinafter appearing ;
2[AND WHEREAS it is also expedient to provide for adjustment of debts of certain farmers, rural
artisans, rural labourers and workers and to provide for matters connected therewith;]
It is hereby enacted in the Twenty-sixth Year of the Republic of India as follows :—
CHAPTER I
PRELIMINARY
1. Short title, extent 3[and commencement].— (1) This Act may be called the Maharashtra
Debt Relief Act, 1975.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 22nd day of the August 1975.
4* * * * * *
2. Definitions.— In this Act unless the context requires otherwise,—
(a) “agriculturist” means a person who cultivates land personally;
(b) “appointed day” means the 22nd day of August 1975;
(c) “civil court” includes a Court of Small Causes;
(d) “corporation area” means an area within the jurisdiction of any municipal corporation
constituted or established under any law for the time being in force;
(e) “ debt” means any liability in cash or kind, outstanding on the appointed day, being a
liability arising out of a loan (with interest if the loan is taken by a worker, and with or without
1 For Statement of Objects and Reasons of the L. A. Bill No. LX XVI of 1975, see Maharashtra Government Gazette ,
1975, Extraordinary No. 84, Part V, dated 25th December 1975, p. 816.
2 This paragraph was inserted by Mah. 18 of 1979, s. 2.
3 These words were substituted for the words “commencement and duration” by Mah. 18 of 1979, s. 3 (b).
4 Sub-section (4) was deleted by Mah. 18 of 1979, s. 3 (a).
8 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
interest, in any other case), whether secured or unsecured, due from a debtor whether payable
under a decree or order of any court or otherwise;
(f) “debtor” means a marginal farmer, rural artisans, or rural labourer whose total income
from all sources did not exceed two thousand and four hundred rupees during the year
immediately before the 1st day of August 1975 and a worker whose total income from all sources
did not exceed, if living in an urban area six thousand rupees during the year immediately before
the said date, and if living elsewhere four thousand and eight hundred rupees during that year;
(g) “to hold land ” with its grammatical variations and cognate ex pressions, means to be
lawfully in actual possession of land as owner or as tenant (including a Governmen t lessee), and
the expression “holding” shall be construed accordingly;
(h) “marginal farmer” means an agriculturist who holds land measuring not more than one
hectare of unirrigated land and includes an agriculturist who cultivates as a tenant of share
cropper land measuring not more than one hectare of unirrigated land;
(i) “ member of a family ” means a father, mother, spouse, brother, unmarried dependent
sister, divorced and dependent sister, son, son ’s wife, or unmarried daughter, divorced and
dependent daughter, son’s son, son’s unmarried daughter, son’s divorced and dependent daughter,
and includes any relation residing with and actually dependent for his maintenance on the debtor;
(j) “rural area” means an area for the time being within the jurisdiction of a Zilla Parishad
established under, the Maharashtra Zilla Parishads and Panchayat Sami tis Act, 1961 (Mah . V of
1962), and includes any ‘B’ Class or ‘C’ Class municipal area as classified under the Maharashtra
Municipalities Act, 1965 (Mah. XL of 1965), but does not include the area within the limits of the
cantonments of Pune, of Kirkee and Kamptee as defined under the C antonment Act, 1924 (2 of
1924);
(k) “rural artisan” means a person who principally earns his livelihood in a rural area by
practising any craft either by his own labour or with the help of labour of the members of his
family but does not include an artisan who resides in an urban area;
(l) “rural labourer” means a person who—
(i) does not hold any land in a rural area,
(ii) may or may not have any homestead therein, and
(iii) earns his livelihood principally by manual labour,
but does not include any such labourer residing in an urban area and a rural artisan;
(m) “small farmer” means an agriculturist who holds land measuring more than one hectare
of unirrigated land but less than two hectares of such land and who cul tivates personally such
land and includes an agriculturist who cultivates as a tenant or a share cropper land measuring
more than one hectare of unirrigated land but not more than two hectares of such land.
Explanation I.—A person belonging to a Scheduled Caste, Scheduled Tribe, Nomadic Tribe
or Vimukta Jatis shall be deemed to be small farmer irrespective of the extent of unirrigated land
held and cultivated by him as aforesaid;
Explanation II .—“Nomadic Tribes ” and “ Vimukta Jatis ” means Nomadic Tribes an d
Vimukta Jatis determined as such by the State Government from time to time;
(n) “ urban area” means a corporation area or an area within the limits of any municipal
council constituted under any law for the time being in force in the State, and includes the area
within the limits of the cantonments of Poona, Kirkee and Kamptee as defined under the
Cantonments Act, 1924 (2 of 19 24), but does not include any “B” Class, or “C ” Class municipal
area as classified under the Maharashtra Municipalities Act, 1965 (Mah XL of 1965);
(o) “ worker” means a person who earns his livelihood through any profession, calling or
trade and also a person who is working in any factory (including a badli worker therein);
Explanation.—In this clause—
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 9
(1) the expression “ factory” has the meaning assigned to it in the Factories Act, 1948
(63 of 1948), with this modification that the limitation on the number of workers working
therein shall be dispensed with;
(2) the expression “ badli worker” means a worker who is provided with a badli card
and who is employed in a factory in place of another worker who is temporarily absent and
whose name is borne on the muster-roll of the factory;
(3) for the avoidance of doubt, it is hereby declared that the expression “profession,
calling or trade” shall include and shall be deemed always to have included “employment” ,
and that expression shall be construed accordingly;
(p) words and expressions used in this Act but not defined therein shall have the
meanings, respectively assigned to them in the Maharashtra Agricultural Lands (Ceiling on
Holdings) Act, 1961 (Mah. XXVI of 1961).
CHAPTER II
REVIVAL OF DEBTS
3. Revival of all d ischarged debts under Ordinance VII of 1975. — Notwithstanding
anything contained in the Maharashtra Debt Relief Ordinance, 1975 (Mah. Ord. VII of 1975), all debts
of a debtor which stood discharged on the appointed day under the provisions of that Ordinance shall,
on the commencement of this Act, stand revived; and accordingly, the provisions of the said Ordinance
as amended by this Act as herein provided shall operate in relation to all such revived debts, as if those
provisions were always amended and in operation on the appointed day.
CHAPTER III
LIQUIDATION OF CERTAIN DEBTS
4. Discharge of certain debts and consequenc es thereof. — Notwithstanding anything
contained in any other law for the time being in force or in any contract or other instrument having
force by virtue of any such law and save as otherwise expressly provided in this Act, every debt of a
worker whose im movable property, if any, does not exceed twenty thousand rupees in market value
and every debt of any other debtor, outstanding on the appointed day, including the amount of interest,
if any, payable by a debtor shall be deemed to be wholly discharged; an d the consequences as
hereinafter set forth shall, with effect from the appointed day, ensue, namely:—
(a) no such debt due from a debtor on the appointed day shall be recoverable from him or
from or against any moveable or immovable property belonging to him, nor shall any such
property be liable to be attached and sold or proceeded against in any manner in the execution of
any decree or order relating to such debt against him;
(b) no Civil Court shall entertain any suit or proceeding against such debtor for the recovery
of any amount of such debt, including interest, if any:
Provided that, where a suit or proceeding is instituted jointly against such debtor or any
other person, nothing in this clause shall apply to the maintainability of a suit or proce eding in so
far as it relates to such other person;
(c) all suits and proceedings (including appeals, revisions, attachment or execution
proceedings) pending on the appointed day for the recovery of any such debt against such debtor
shall abate:
Provided that nothing in this clause shall apply to the sale of—
(i) any movable property, held and concluded before the appointed day;
(ii) any immovable property, confirmed before such day;
(d) every debtor undergoing detention in a civil prison in execution of any decree for money
passed against him by a Civil Court in respect of any such debt shall be released;
(e) every property pledged or mortgaged by such debtor shall stand released in favour of
such debtor, and the creditor shall be bound to return the same to the debtor forthwith on the
10 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
debtor making an application in writing in that behalf; and the creditor shall pass a receipt to the
debtor of having received the application. If the creditor refuses to pass a receipt, then the debtor
may get the application endorsed to that effect under the signature and date of any of the officers
referred to in section 6 or by any person authorised by them in this behalf.
Explanation 1.—Nothing in this sect ion shall be construed to entitle any such debtor to the
refund of any part of a debt already repaid by him or recovery from him before the appointed day.
Explanation 2.—For the purposes of this section, the expression “debt of a worker” includes
a debt arising out of loans taken from more than one creditor.
5. Prohibition against di sposal of pledged property etc. and penalty.— (1) No creditor shall
after the appointed day, damage, destroy or tamper with any property pledged or mortgaged with him
or any document connected therewith or part with or otherwise deal with the same except as provided
in this Act.
(2) Any person who contravenes the provisions of sub -section ( 1) shall, on conviction, be
punished with imprisonment for a term which may extend to th ree years and with fine which ma y
extend to one thousand rupees:
Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in
the judgment of the Court, such imprisonment shall not be less than six months, and fine shal l not be
less than two hundred rupees.
6. Power of certain officers to enforce delivery of possession of property to debtor.— Where
a creditor fails to return the property to the debtor forthwith as required by clause ( e) of section 4, and
the debtor is o pposed or impeded in taking possession of the property, then the debtor may, subject to
the provisions of section 7, request the Commissioner of Police, where there is one, and elsewhere the
District Magistrate or the Superintendent of Police, to enforce d elivery of possession of such property,
the Commissioner of Police, the District Magistrate or, as the case may be, the Superintendent of
Police, shall take or cause to be taken such steps or use or cause to be used such force as may be
reasonably necessary for securing the delivery of possession of the property to the debtor.
Explanation.—For the purposes of this section—
(a) the Commissioner of Police includes an officer not below the rank of an Inspector duly
authorised by him;
(b) the District Magist rate includes an officer not below the rank of a T ahsildar duly
authorised by him; and
(c) the Superintendent of Police includes an officer not below the rank of a Sub -Inspector
duly authorised by him.
7. Creditor may dispute debtor’s claim.— (1) If, in the course of implementing the provisions
of section 4, a creditor raises a question that the person who claims to be his debtor is not a marginal
farmer, a rural artisan, a rural labourer or, as the case may be, a worker, or disputes the eligibility of the
debtor for relief under this Act on any other ground including the valuation of the immovable property,
if any, of a worker, then the creditor shall make an application in writing to an officer not below the
rank of an additional Tahasildar (or any officer in any department who in the opinion of the District
Magistrate is of equivalent rank) duly appointed by an order in writing by the District Magistrate in this
behalf (hereinafter referred to as “the Authorised Officer”).
(2) The application shall state the facts of the case in brief, and the point raised for the decision of
the Authorised Officer; and shall be made within seven days from the date of receipt of the application
by the creditor under clause ( e) of section 4, or from the date of e ndorsement made on the application
under that clause.
(3) No application under this section shall be entertained by the Authorised Officer unless the
creditor either deposits the pledged property or any document evidencing such pledge or both or the
value of such property. If the property for any reason is not available with the creditor, in which case
he shall make an affidavit stating the reasons for which the property is not available.
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 11
(4) In all proceedings under this section, the Authorised Officer shall follow the procedure
provided for summary inquiries under the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966).
(5) For the purposes of this section, a person claiming to be a debtor shall unless the contrary is
proved, be presumed by the Authorised Officer to be a debtor if he produces a certificate from any
Special Executive Magistrate, talathi, police patil , sarpanch of a village panchayat, or any person
specified by the State Government in an order from time to time made in this behalf that he is a debtor
as described in such certificate. The certificate shall be issued in such form as the State Government
may from time to time determine. The authority issuing the certificate may not hear the creditor before
issuing such certificate.
(6) The Authorised Officer shall have power to determine all questions in relation to, or
connected with, the question or dispute raised b y the creditor in his application, and accordingly, he
may determine the extent, or as the case may be, the value of the property, give directions for the safe
custody of the pledged property and may pass such orders as may be necessary in the circumstance s of
each case for enforcing and implementing the provisions of this Act. It shall be lawful for the
Authorised Officer to take the assistance of the services of an expert for determining the value of any
immovable property; and the provisions of sub-section (3) of section 9 for payment of honorarium shall
apply to such payment.
(7) Except as otherwise provided in this section, no question shall be decided by the Authorised
Officer under this section unless an opportunity has been given to the creditor and the debtor to be
heard.
(8) The Authorised Officer shall decide the question as provided in this section and his decision
shall be final and conclusive and shall not be called in question in any Civil Court. If the property or its
value is in the possessi on of the Authorised Officer and the decision is in favour of the debtor, it shall
be delivered to the debtor forthwith; and he shall make an endorsement on the order that the property
or value has been delivered to the debtor.
8. Power of entry and sear ch.— (1) For enforcing the provisions of this Chapter, any officer
referred to in section 6 may enter and search any place without any warrant where such officer has
reason to believe that the property of any debtor or any document evidencing transactions relating to a
loan given to any debtor is kept or concealed; and may seize such property or documents and detain the
same in his custody for such period as he may think fit. If the property is not delivered to the debtor, it
shall be returned to the creditor from whose custody it was seized.
(2) Except as provided in sub-section (2), the other provisions of the Code of Criminal Procedure,
1973 (II of 1974), shall, so far as may be applicable, apply to such search or seizure as they apply to
any search or seizure made under the provisions of the said Code.
9. Creditor required to pay value of pledged property in certain cases. — (1) If the
possession of the property pledged by a debtor cannot for any reason (including lack of identity
thereof) be delivered to him, then the creditor shall pay to the debtor the value of such property. The
value of the property shall be the market value thereof, and identity of the property shall be determined
after due inquiry made in that behalf. If the creditor fails to pay the value, it may be recoverable from
him as an arrear of land revenue ; and on recovery of the value, it shall be delivered to the debtor by
whom such property was pledged.
(2) If there is difference of opinion between the creditor and the debtor on the question of value of
the property or its identity, the question shall be referred to the Authorised Officer for decision, and his
decision on the question shall be final.
(3) The value of the property may be determined with the assistance of the services o f an expert
appointed in that behalf. The expert may be paid such honorarium as the State Government or any
officer not below the rank of a Tahsildar appointed by it may by an order in writing from time to time
in relation to any area or areas determine.
10. Power of Authorised Officer to impose fine for frivolous vexations applications. —
Where an application presented to an Authorised Officer under section 7 is dismissed, and the
Authorised Officer is satisfied that the application is frivolous or vexatious, the Authorised Officer may
12 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
by an order in writing impose on the creditor a fine of an amount which may extend to one hundred
rupees. If the creditor fails to pay the fine within thirty days from the date of receipt of the order, it may
be recovered from him as an arrear of land revenue.
11. Bar of jurisdiction.— (1) No Civil Court shall have jurisdiction to settle, decide or deal with
any question which is by or under this Chapter required to be settled, decided or dealt with by the
Authorised Officer.
(2) No order of the State Government or of any officer or authority made under this Chapter shall
be questioned in any Court.
12. Suits involving issues required to be decided under this Act. — (1) If a suit instituted in
any civil court involve s any issues which are required to be settled, decided or dealt with, by the
Authorised Officer under this Act, the civil court shall stay the suit and refer such issues to the
Authorised Officer for determination.
(2) On receipt of such reference from t he civil court, the Authorised Officer shall deal with and
decide such issues in accordance with the provisions of this Chapter, and shall communicate his
decision to the civil court, and such court shall thereupon dispose of the suit in accordance with th e
procedure applicable thereto.
13. Agreement for labour in lieu of debt to become void. — Any custom or tradition or any
agreement (whether made before or after the appointed day), whereunder or by virtue of which a debtor
or any member of his family is required to work as labourer or otherwise for the creditor shall be void
and of no effect and shall never be enforceable in any civil court.
CHAPTER IV
MORATORIUM ON DEBTS OF WORKERS
14. Moratorium on debts of workers in certain cases. — (1) Notwithstanding anything
contained in any other law for the time being in force or in any contract or other instrument having
force by virtue of any such law, no debt of a worker who holds immovable property the market value
of which exceeds twenty thous and rupees but does not exceed forty thousand rupees together with
interest, if any, outstanding on the appointed day, shall stand discharged or shall be deemed ever to
have stood discharged on the appointed day; and except as herein before provided, all s uch debts shall
stand revived as provided by section 3 and shall continue to exist until they are wholly discharged ; but
the payment or recovery of any such debts shall, subject to the provisions of this section, nevertheless
stand stayed 1[during the per iod this Chapter remains in force ;] and it shall not be lawful for any
creditor to recover any such debt or any part thereof or any interest remaining unpaid on the appointed
day during such period, and the provisions of Chapter V shall apply to the execut ion of decrees in
relation to such debt against any such workers as they apply to the execution of decrees against small
farmers.
(2) The amount of debt of a worker to be recovered 2[after the expiry of this Chapter] shall not
exceed the amount of the principal by more than one hundred and fifty per cent of such amount.
(3) No interest shall accrue on any amount of the debt of a worker during the period this Chapter
is in operation.
Explanation.—For the purposes of this section, the expre ssion “debt of a worker” includes a debt
arising out of loans taken from more than one creditor.
3[14A. Temporary duration of Chapters IV and V. — Without prejudice to the operation of
the other provisions of this Act, this Chapter and Chapter V shall remain in force for the period
commencing on the 22 nd August 1975 and 4[ending on, and inclusive of, the 21 st August 1989] and for
1 These words were substituted for the words “during the period this Act remains in force” by Mah. 18 of 1979, s. 4 (a).
2 These words were substituted for the words “after expiry of this Act” by Mah. 18 of 1979, s. 4 (b).
3 Section 14A was inserted by Mah. 18 of 1979, s. 5.
4 These words, figures and letters were substituted for t he words, figures a nd letters “ending on, and inclusive of, the 21 st
August 1985” by Mah. 1 of 1988, s. 2.
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 13
such further period thereafter, not exceeding two years as the State Government may, from time to
time, by notification in the Official Gazette, specify and shall then expire. Section 7 of the Bombay
General Clauses Act, 1904 (Bom. I of 1904), shall apply upon the expiry of these Chapters as if they
had been repealed by a Maharashtra Act.]
CHAPTER V
MORATORIUM ON EXECUTION OF DECREES AGAINST SMALL FARMERS
15. Stay of proceedings in case of certain decrees. — (1) All proceedings in execution of any
decree for money, or proceeding for making final, any preliminary decree for foreclosure or sale, or
proceedings in execution of any final decree for sal e, passed by a civil court on the basis of a liability
in relation to a debt incurred before the appointed day, in which the judgement -debtor or defendant, as
the case may be, is on the appointed day, a small farmer, shall be stayed against such judgement-debtor
of defendant, on an application made by him in this behalf 1[during the period this Chapter remains in
force.]
(2) All attachments of growing crops, agricultural produce, livestock and other moveable property
of a perishable nature made in executio n of decrees for money the execution of which has been stayed
under sub-section (1) and existing on the date on which the stay order is passed shall be withdrawn.
(3) Any judg ment-debtor or defendant who is a small farmer may, notwithstanding that no
proceedings of the nature referred to in sub-section (i) are pending against him, make an application for
stay under that sub-section.
(4) Every stay order passed by a court under this section shall relate back to the date of the
application for stay filed by the judgment-debtor or defendant, as the case may be, and the proceedings
shall for all purposes of this Act be deemed to have been stayed with effect from such date.
16. Release of persons detention in civil prison. — (1) On the appointed day, every sm all
farmer undergoing detention in a civil prison in execution of any decree for money passed by a civil
court in respect of his debt shall be released.
(2) No small farmer shall in any case be liable to arrest or detention in civil prison in execution of
any such decree as is referred to in sub-section (1) 2[during the period this Chapter remains in force.]
17. Relief against default in payment of instal lments.— (1) Where a decree for payment of a
decretal amount by instal lments contains a provision that in default of one or more instal lments, the
whole amount shall become due at once, then, notwithstanding anything in such provision, non -
payment of any installment falling due during the period in which the proceedings in execution remain
stayed 3[under this Chapter,] shall not be deemed to be a default for the purposes of such provision.
(2) If the judgment-debtor pays the instal lments so falling within a period of twelve months
4[after the expiry of this Chapter,] then such insta llment shall be deemed to have been paid on the due
date.
18. Computation of time for execution. — In computing the period of twelve years prescribed
by the Limitation Act, 1963 (36 of 1963), the period during which proceedings are stayed 5[under this
Chapter] shall be excluded.
19. Payment of certain decrees.— Nothing contained in this Chapter shall—
(a) apply to a decree for money arising out of claims relating to trusts or for maintenance or
for profits in favour of a co-tenant or co-owner, or for mesne profits or for damages for tort, or for
contribution between co-tenants of agricultural lands ; or
1 These words were substituted for the words “during the period this Act remains in force.” by Mah. 18 of 1979, s. 6.
2 These words were substituted for the words “during the period this Act remains in force.” by Mah. 18 of 1979, s.7.
3 These words were substituted for the words “under this Act,” by Mah. 18 of 1979, s. 8(a).
4 These words were substituted for the words “after the expiry of this Act,” by Mah. 18 of 1979, s. 8(b).
5 These words were substituted for the words “under this Act” by Mah. 18 of 1979, s 9.
14 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
(b) apply to a mortgage decree against property in the hands of a subsequent transferee who has
taken the transfer in order to satisfy the mortgage subject to the mortgage on the basis of which such
decree has been obtained ; or
(c) apply to the decisions or orders or awards given or made by the Registrar, persons appointed
to assist the Registrar, nominees or boards of nominees appointed by the Registrar, L iquidators,
Maharashtra State Co-operative Tribunal, Co-operative Courts, Co-operative Appellate Court or other
authorities under the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), or the rules
made thereunder.
20. Transfer by small fa rmer to be voidable. — Every transfer of property made by a small
farmer against whom proceedings in execution have been stayed 1[under this Chapter] shall be
voidable at the option of the creditor whose claim against such small farmers is defeated or delayed.
21. Restriction on amount of claim and interest in certain cases. — (1) On the expiry of this
Chapter, no claim arising out of any proceedings which are stayed under sub -section (1) of section 15
or out of any decree described in sub -section ( 1) of t hat section in respect of which no execution
proceedings have been taken shall exceed the amount of the principal by more than one hundred fifty
per cent of such amount.
(2) No interest shall accrue on any amount included in any claim referred to in sub -section (1)
during the period this Chapter is in operation.
2[CHAPTER V-A
ADJUSTMENT OF DEBTS OF CERTAIN FARMERS AND WORKERS
22. Commencement of Chapter V-A.— The provisions of this Chapter shall come into force on
the date of commencement of the Maharashtra Debt Relief (Amendment) Act, 1979 (Mah. XVIII of
1979) (hereinafter in this Chapter referred to as “the date of commencement of this Chapter”) and shall
have effect notwithstanding anything inconsistent therewith contained in Chapters IV and V.
23. Definitions.— In this Chapter, unless the context requires otherwise,—
(a) “award” means an award made under sub-section (4) of section 27 or under section 41 or
42 or as confirmed or modified by the Court in appeal;
(b) “Court” means—
(i) in Greater Bombay, the Court of Small Causes, Bombay,
(ii) in any area for which a Court of Small Causes is established under the Provin cial
Small Cause Courts Act, 1887 (IX of 1887), such Court, and
(iii) elsewhere, the Court of the Civil Judge (Junior Division) having jurisdiction in the
area in which the debtor ordinarily resides or, if there is no such Civil Court, the Court of
the Civil Judge (Senior Division) having ordinary jurisdiction;
(c) “debt” means any liability, in cash or kind, outstanding on the date of commencement of
this Chapter being a liability arising out of a loan (with interest if the loan is taken by a worker,
and with or without interest, in any other case), whether secured or unsecured, due from a debtor,
whether payable under a decree or order of any Court or otherwise;
(d) “debtor” means—
(i) a marginal farmer, small farmer, rural artisan or rural labourer as defined in section
2, who owes any debt and whose total income from all sources exceeded two thousand and
four hundred rupees, but did not exceed six thousand rupees during the year immediately
preceding the date of commencement of this Chapter ;
(ii) a worker as defined in section 2, who owes any debt, and—
1 These words were substituted for the words “under this Act” by Mah. 18 of 1979, s. 10.
2 Chapter V-A was inserted by Mah. 18 of 1979, s. 11.
1976 : Mah. III] The Maharashtra Debt Relief Act, 1975 15
(A) whose total income from all sources exceeded, if living in an urban area, six
thousand rupees, but did not exceed eight thousand rupees, during the year
immediately preceding the date of commencem ent of this Chapter, or exceeded, if
living elsewhere, four thousand and eight hundred rupees, but did not exceed seven
thousand rupees, during that year; or
(B) who holds immovable property the market value of which, on the date of
commencement of this C hapter, exceeds twenty thousand rupees, but does not exceed
forty thousand rupees;
(iii) an agriculturist, who owes any debt and who, on the date of commencement of
this Chapter, holds more than two hectares of unirrigated land, but less than four hectare s of
such land, and cultivates such land personally; or an agriculturist who owes any debt and
who is, on the date of commencement of this Chapter, cultivating as a tenant or a share
cropper any land measuring more than two hectares of unirrigated land, bu t less than four
hectares of such land, in both cases the land being situated in any drought-prone area; or
(iv) any other person, the payment of recovery of whose debts has been stayed under
section 14 or against whom any proceedings have been stayed under section 15;
(e) “drought -prone area” means any area or areas, which the State Government, having
regard to the distress caused therein by serious drought, flood or other natural calamities, may,
from time to time, by notification in the Official Gazette, declare to be drought -prone areas, for
the purpose of this Chapter;
(f) “financing of crops” means advancing of loans for the cultivation of crops during the
ploughing season or later, for ploughing, sowing, harrowing, weeding, harvesting, purch ase of
seeds manure or bullocks or for such other purposes and payable during such periods (not
exceeding five years from the date on which the loan is advanced) as may be prescribed;
(g) “prescribed” means prescribed by rules made under this Chapter;
(h) “resource society” shall have the meaning assigned to it in the Maharashtra Co-operative
Societies Act, 1960 (Mah. XXIV of 1961);
(i) “seasonal finance” means advancing of loans for preparation of lands for irrigation, for
constructing field channels or bunds to save land from erosion, for the removal of silt or for such
other purposes and payable during such period as may be prescribed;
(j) words and expressions used in this Chapter, but not defined in this Chapter, shall have
the meanings, respectively, assigned to them in the other Chapters of this Act, or the Code of
Civil Procedure, 1908 (V of 1908), as the case may be.
24. Application for adjustment of debts.— (1) Any debtor or his creditor may, within a period
of six months from the date of commencement of this Chapter, make an application to the Court for
adjustment of the debts of the debtor.
(2) Every application under this section shall be made in writing in the prescribed form, and shall
be signed, verified and presented, in the prescribed manner, and shall contain such particulars and be
accompanied by copies of such documents as may be prescribed.
(3) Notwithstanding anything contained in sections 58 and 60, an application under this section
shall also contain the particulars of all debts specified in those sections due by the debtor.
(4) An application made under this section shall not be withdrawn without the leave of the Court.
(5) Where two or more applications are made under this section by or against the same debtor, all
such applications shall be consolidated. Where such applications are presented by or against joint
debtors, all such applications shall be heard together.
25. Every creditor and debtor to file true and correct statement before Court. — (1)
Notwithstanding the fact that no application had been made under section 24,—
16 The Maharashtra Debt Relief Act, 1975 [1976 : Mah. III
(a) every creditor, on being required to do so by notice in writing by any of his debtor s, shall,
within two months from the date of receipt of such notice, file before the Court a true and correct
statement of all his claims under any decree or otherwise against such debtor, and shall at the same
time send a copy thereof to such debtor, and
(b) every debtor, on being required to do so by notice in writing by any of his creditors, shall,
within two months from the date of receipt of such notice, file before the Court a true and correct
statement,—
(i) of all the debts owned by such debtor un der any decree or otherwise to such creditor or
creditors;
(ii) declaring whether he holds any land used for agricultural purposes, and if so, the exact
area and situation of the land so held, together with its market value as certified in a corporation
area by an engineer of the corporation authorised by it in this behalf and elsewhere by the
Tahsildar having jurisdiction over the area where such land is situated, and whether he has been
cultivating the land personally within the meaning of the relevant tenancy law;
(iii) of his total income from agriculture, and from sources other than agriculture, in the year
immediately preceding the date of the notice, the agricultural and non-agricultural income and the
different sources of nonagricultural income being shown separately;
(iv) of his other immovable Excerpt shown. Open the full act in Lexace.