LexThe Maharashtra (Vidarbha Region) Agricultural Debtors Relief Act, 1969
Maharashtra · state statute
Open in Lexace · Ask the AI about this act1969 : Mah. XXII] 1
THE MAHARASHTRA (VIDARBHA REGION)
AGRICULTURAL DEBTORS RELIEF ACT, 1969
[Text as on 2nd January 2024]
——————
CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
PROCEDURE FOR ADJUSTMENT OF DEBTS
3. Application for adjustment of debts.
4. Every creditor and debtor to file a true and correct statement before Court.
5. Assignees from non-debtor not entitled to benefit of this Act.
6. Application for recording settlement.
7. Settlement during pendency of proceedings before Court.
8. Certain settlements to be void.
9. Withdrawal of application.
10. Consolidation of applications.
11. Power of Civil Judge to refer for disposal certain applications to Joint Civil Judge.
12. Service of notice on debtors and creditors to submit statement of debts.
13. Debts in respect of which no application for adjustment or set tlement is made to be
extinguished.
14. Duties of debtors and creditors.
15. Preliminary issues.
16. Taking of accounts.
17. Examination of creditor and debtor.
18. Mode of taking accounts and reduction of debt or interest or both.
19. In certain cases rent may be charged in lieu of profits.
20. Power of Court to declare certain transfers to be in nature of mortgage.
21. Provisions of section 20, not to apply to certain transfers and transferees.
21A. Court’s duty to determine particulars, value, etc., of property.
22. Fraudulent alienations or incumbrances void.
22A. Value of property of debtor to be determined by Court in prescribed manner.
22B. Paying capacity of debtor.
22C. Debts payable by debtor to be further scaled down.
23. Award.
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24. No recovery of amount in excess of debts reduced.
25. Ex-parte proceeding, if any party does not appear.
26. Award to be registered; how executed.
27. Postponement of payment of instalment in case of remissions, etc.
28. No alienation by debtor before discharge of debts valid.
29. Court may order sale of debtor’s property in liquidation of his debt.
30. Pleaders, etc., excluded from appearance.
31. Appeals.
32. Power of District Judge to refer for disposal certain appeals to Assistant Judge or Civil
Judge empowered to hear appeals.
33. Court fees.
34. Notice how served.
35. Provisions of Civil Procedure Code to apply to proceedings.
CHAPTER III
REGISTRATION OF AWARDS
36. Debt Adjustment Register and Index.
37. Court to send awards and memoranda to Registrars and Sub-Registrars.
38. Notice of appeals to Registrars.
39. Registration.
40. Notice of awards.
41. Application of Indian Registration Act.
CHAPTER IV
INSOLVENCY PROCEEDINGS
42. Court to declare debtor insolvent in certain circumstances.
43. Procedure in insolvency proceedings.
44. Distribution of assets of insolvent.
45. Bar to application in insolvency in other Courts.
46. Appeals barred.
CHAPTER V
MISCELLANEOUS
47. Bar of Civil Suits or proceedings.
48. Period of proceeding before Courts under this Act to be excluded.
49. Alienation of standing crops, etc., before repayment of loan prohibited.
50. Power of State Government to authorise any person to advance loans to debtors.
51. Rules.
52. Repeal of M.P.V. of 1956.
53. Repeal and saving.
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Debtors Relief Act, 1969
LIST OF AMENDMENT ACTS
1. Amendment by Mah. 55 of 19691
2. Amendment by Mah. 7 of 1970
1 Maharashtra Ordinance No. XII of 1969 was repealed by Mah. 55 of 1969, s.3.
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Debtors Relief Act, 1969
MAHARASHTRA ACT No. XXII OF 19691
[THE MAHARASHTRA (VIDARBHA REGION) AGRICULTURAL
DEBTORS RELIEF ACT, 1969.]
[This Act received the assent of the President on the 16th April 1969; the assent was
first published in the Maharashtra Government Gazette, on the 18th April 1969.]
An Act to provide for the relief of certain agricultural debtors in the
Vidarbha region of the State of Maharashtra.
WHEREAS, it is expedient to provide for the relief of certain agricultural debtors in the Vidarbha
region of the State of Maharashtra; It is hereby enacted in the Twentieth Year of the Republic of India
as follows :—
CHAPTER I
PRELIMINARY
1. Short title , extent and commencement. — (1) This Act may be called the Maharashtra
(Vidarbha Region) Agricultural Debtors Relief Act, 1969.
(2) It extends to the Vidarbha region of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 7th day of March 1969.
2. Definition. — In this Act, unless the context otherwise requires, — (1) “award” means an
award made under sub -section (4) of section 6 or section 7 or 23 or as confirmed or modified by the
Court in appeal;
(2) “Code” means the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966);
(3) “Court” means the Court of the Civil Judge (Se nior Division), having ordinary jurisdiction in
the area where the debtor ordinarily resides, and if there is no such Civil Judge, the Court of the Civil
Judge (Junior Division), having such jurisdiction and includes any Court to which an application may
be referred for disposal under section 11;
(4) “creditor” means the holder of a decree;
(5) “debt” means any liability payable by a debtor under or in relation to any decree;
(6) “debtor” means a person (including an undivided Hindu family) who is a judg ment-debtor or
defendant against whom all proceedings of the nature referred to in sub -section (1) of section 3 of the
Madhya Pradesh Act have been stayed;
(7) “decree” means any decree referred to in sub -section (1) of section 3 of the Madhya Pradesh
Act;
(8) “financing of crops” means advancing of loans for the cultivation of crops during the
ploughing season, or later for ploughing, sowing, harrowing, weeding, harvesting, purchase of seeds,
manure or bullocks or for such other purposes and repayable during such periods (not exceeding five
years from the date on which a loan is advanced), as may be prescribed ;
(9) “Madhya Pradesh Act” means the Madhya Pradesh Temporary Postponement of Execution of
Decrees Act, 1956 (M.P.V of 1956);
(10) “prescribed” means prescribed by rules ;
(11) “seasonal finance” means advancing of loans for prepara tion of land for irrigation, for
constructing field channels or bunds to save land from erosion, or for removal of silt or for s uch other
purposes and repayable during such periods, as may be prescribed ;
1 For Statement of objects and Reasons, see Maharashtra Government Gazette, 1969, Part V, Page 355.
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(12) words and expressions used in this Act, but not defined, shall have the meanings
respectively assigned to them in the Code of Civil Procedure, 1908 (V of 1908), or as the case may be,
the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966).
CHAPTER II
PROCEDURE FOR ADJUSTMENT OF DEBTS
3. Application for adjustment of debts. — (1) Any debtor or his creditor may, subject to the
provisions of this Act, make an application before the 1[1st day of April 1970] to the Court for
adjustment of the debts of the debtor.
(2) Every application shall be made in writing in the prescribed form, and shall be signed, verified
and presented, in the prescribed manner, and shall be accompanied by a copy of the decree and a
statement showing the amount paid, if any, in relation to such decree.
4. Every creditor and debtor to file a true and correct statement before Court.—
(1) Notwithstanding the fact that no application has been filed under section 3,—
(a) every creditor, on being required to do so by notice in writing by any of his debtors,
shall, within two months from the date of the receipt of such notice, file before the Court a true
and correct statement of all his claims under any decree 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 the receipt of such notice, file before the Co urt a true
and correct statement—
(i) of all the debts owed by such debtor under any decree;
(ii) whether he holds any land used for agricultural purposes and whether he has been
cultivating land personally within the meaning of the Bombay Tenancy and Agricultural
Lands (Vidarbha Region) Act, 1958 (Bom. XCIX of 1958);
(iii) of his income from agriculture and from sources other than agriculture in the year
preceding the date of the notice.
The debtor shall at the same time send a copy of such statement to such creditor :
Provided that, the Court may, for sufficient cause, extend, from time to time, the period within
which the creditor or the debtor, as the case may be, may file such statement.
(2) Every debtor or creditor giving a notice under sub -section (1) shall at the same time send a
copy thereof to the Court.
(3) In awarding costs of any proceeding in respect of any application made under section 3, the
Court may, on being satisfied that the statement required to be filed under sub-section (1) was, without
sufficient cause, not filed within the time specified therein, or within the period extended under the
proviso to sub -section ( 1), or incorrectly filed, direct the party in default to bear the whole or any
portion of such costs.
5. Assignees fro m non-debtor not entitled to benefit of this Act. — No application shall lie
under section 3 for adjustment of any debt due from a debtor to whom such debt has been transferred
or assigned af ter the date on which this Act comes into force by any person who is not himself a
debtor.
6. Application for recording settlement. — (1) If any debtor and any or all of his creditors
arrive at a settlement in respect of any debt due by the debtor to the creditor or creditors, the debtor or
1 These figures, letters and words were substituted for the figures, letters and words “1 st day of October 1969” by Mah. 55
of 1969, s. 2.
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Debtors Relief Act, 1969
any creditor may, within thirty days from the date of such settlement, make an applic ation to the Court
for recording such settlement.
(2) Every such application shall be in the prescribed form and shall be signed and verified in the
prescribed manner.
(3) On receipt of such application, the Court shall, after giving notice in the prescribed manner to
the creditor or creditors or the debtor, as the case may be, and after making such inquiry as it thinks fit,
if it is satisfied that the settlement arrived at is bona-fide and voluntary, and is not made with intent to
defeat or delay any of the creditors of the debtor, and is in the interest of the debtor, record such
settlement and certify the same. Every such settlement so recorded and certified shall be binding upon
the parties thereto, and shall not, save as otherwise hereinafter provided, be re-opened.
(4) After the Court has recorded and certified a settlement under sub -section (3), the Court shall
call upon the debtor to make a declaration whether there are any other debts due by the debtor which
are not included in the settlement. If the debtor makes a declaration that there are no such debts, the
Court shall make an inquiry and ascertain that there are no debts other than those included in the
settlement and then make an award in terms of such settlement.
(5) If the Court on making an inquiry under sub -section (4), is satisfied that there are other debts
due from the debtor which are not included in the settlement, the Court shall treat the application made
under sub-section (1) as an application for adjustment of debts under section 3.
7. Settlement during pendency of proceedings before Court. — Notwithstanding anything
contained in the preceding sections, if during the pendency of proceedings before any Court or Court in
appeal, as the case may be, a settlement is arrived at between a debtor and all his creditors, and if such
Court is satisfied that the settlement has been made by the debtor voluntarily and is for his benefit, such
Court may make an award in terms of such settlement.
8. Certain settlements to be void. — Every settlement of a debt due from a debtor to any
creditor, which is not certified by the Court under secti on 6, or in terms of which no award has been
made under section 7, shall be void and shall not be recognised by any Court for any purpose
whatsoever.
9. Withdrawal of application. — An application for adjustment of debts under section 3 or an
application for recording a settlement under section 6 shall not be withdrawn without the leave of the
Court.
10. Consolidation of applications. — Where two or more applications for adjustment of debts
under section 3 are made by or against the same debtor, all such applications shall be consolidated.
Where such separate applications are presented by or against joint debtors, all such applications shall
be heard together.
11. Power of Civil Judge to refer for disposal certain applications to Joint Civil Judge. —
A Civil Judge may refer for disposal any application filed under section 3 or 6 to a Joint Civil Judge.
12. Service of notice on debtors and creditors to submit statement of debts. — On receipt of
an application for adjustment of debts, the Court shall—
(a) give notice to the debtor (unless the debtor is himself an applicant) and to every creditor
(other than the creditor who is himself an applicant) whose name and address are given in the
application, and
(b) publish a general notice,
requiring the debtor and all creditors to submit a statement in the prescribed form within one
month from the date of the service of the notice or the publication of the general notice,
whichever is later :
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Provided that, if the Court is satisfied that the debtor or any creditor is for good and
sufficient cause unable to comply with the notice within the time specified therein it may extent
the period for the submission of the statement.
13. Debts in respect of which no application for adjustment or settlement is made to be
extinguished.— Every debt due from a debtor in respect of which no application has been made under
section 3, before the date specified in that section or in respect of which no app lication for recording a
settlement is made under section 6 wit hin the period specified in the said section 6, or in respect of
which an application made to the Court is withdrawn under section 9 and no fresh application is made
under section 3 and every debt due from such debtor in respect of which a statement is not submitted to
the Court by the creditor in compliance with the provisions of section 12, shall be extinguished.
14. Duties of debtors and credit ors.— (1) Every debtor by or against whom an application is
made under section 3 or who is a party to an appli cation made under section 6, shall produce all books
of accounts and shall give such inventories of his property and such lists of his creditors and debtors
and of the debts due from and to him, submit to such examination in respect of his property or his
creditors, attend at such time before the Court, and generally do all such things as may be required by
the Court, or as may be prescribed.
(2) It shall be the duty of every creditor to produce such books of accounts, to submit to such
examination and to supply such information in respect of the debt due to him by the debtor and the
securities held by him, as may be required by the Court, or as may be prescribed.
15. Preliminary issues. — (1) On the date fixed for the hearing of an application made under
section 3, the Court shall decide the following points as preliminary issues that is to say :—
(a) whether the person for the adjustment of whose debts the application has been made is a
debtor;
(b) whether the creditor or creditors are holding a valid decree against such debtor.
(2) If the Court finds that such person is not a debtor or that the creditor or creditors are not
holding a valid decree against the debtor, the Court shall dismiss the application forthwith.
16. Taking of accounts.— If the Court finds the person making an application under section 3 or
the person against whom an application is made under that section to be a debtor, the Court shall
proceed to take accounts and reduce the debt in the manner hereinafter provided.
17. Examination of creditor and debtor.— In an application for the adjustment of debts if the
amount of the creditor’s claim is disputed, the Court shall, when taking accounts, examine both the
creditor and the debtor as witnesses, unless, for reasons to be recorded, the Court deems it unnecessary
so to do.
18. Mode of taking accounts and reduction of debt or interest or both. — Notwithstanding
any decree referred to in sub -section ( 1) of section 3 of the Madhya Pradesh Act passed by a Civil
Court, the Court shall determine the amount due to each of the creditors as on the date on which this
Act comes into force according to the following provisions, namely :—
(1) (a) Separate accounts of principal and interest shall be taken;
(b) In the accounts of principal and interest, there shall be debited the amounts, if any,
respectively due for principal (including costs) and interest under or in relation to the decree :
Provided that, if such decree does not specify the amount of princi pal and interest separately or
does not contain any material for determining the same, two -thirds and one -third of the amount
awarded by such decree shall, for purposes of this clause, be deemed to be the amount awarded on
account of principal (including costs) and interest, respectively.
(2) In respect of the amount due under any decree on the date on which this Act comes into force,
in the account of interest, there shall be debited to the debtor simple interest on the balance of principal
of the decretal amount for the time being outstanding at the rate agreed upon between the parties, or at
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the rate allowed under such decree or at a rate not exceeding 1[6 per cent.] per annum, whichever is the
lowest. The amount found due under or in relation to such de cree in respect of the principal as well as
interest shall each separately be reduced by 30 per cent. The amounts so reduced shall be taken to
represent the amounts due in respect of principal and interest on the date aforesaid 2[except when the
balance appearing due on the interest account exceeds that appearing due on the principal account, in
which case, double the latter balance shall be deemed to be the amount then due.].
19. In certain cases rent may be charged in lieu of profits. — Where any mortgaged property
is in the possession of the mortgagee or his tenants other than the mortgagor, and the Court is unable to
determine what profits have actually been received, it may fix a fair rent for such property and charge
to the mortgagee such rent as profits for the purposes of section 18 :
Provided that, if it be proved that in any year there was any suspension or remission of rent or
land revenue of such land under the Code, an abatement of the whole or part of such amount may be
allowed for that year.
20. Power of Court to declare certain transfers to be in nature of mortgage .—
Notwithstanding anything to the contrary contained in any law, custom or contract, whenever it is
alleged during the course of the hearing of an application made under section 3 , that any transfer of
land by a person whose debts are being adjusted under this Act or any other person through whom he
inherited it was a transfer in the nature of a mortgage, the Court shall declare the transfer to be a
mortgage, if the Court is satisfied that the circumstances connected with that transfer showed it to be in
the nature of a mortgage.
21. Provision of section 20, not to apply to certain transfers and transferees. — Nothing in
section 20 shall apply to —
(a) any transfer which has been finally adjusted to be a transfer other than a mortgage by a
decree of a Court, tribunal or other authority of competent jurisdiction; and
(b) any bona-fide transferee for value without notice of the real nature of such transfer or his
representative, where such transferee or representative holds under a registered deed executed
before the date on which this Act comes into force.
3[21A. Court’s duty to determine particulars, value, etc., of property. — After taking
accounts under section 18, the Court shall in the manner hereinafter provided determine—
(1) the particulars of the property belonging to the debtor,
(2) the value of the said property,
(3) the particulars of any incumbrances on the said property, and
(4) the paying capacity of the debtor.]
22. Fraudulent alienations or incumbrances void. — (1) If in the course of the hearing of an
application made under section 3, the Court finds that the debtor has made an alienation of property or
created any incumbrance thereon with intent to defeat or delay any of his creditors, the Court shall, by
notice, summon the debtor and the person in whose favour the alienation is made or incumbrance is
created to appear before it on a day to be specified in the notice.
(2) On the day specified in the notice, or such other day to which the hearing may be adjourned,
the Court shall hear the parties and record evidence as may be produced and if it is satisfied that the
alienation was made or the incumbrance was created with i ntent to defeat or delay any of the creditors
of the debtor, the Court shall declare the alienation or incumbrance to be void.
1 These figures and words were substituted for the figure and words “9 per cent.” by Mah. 7 of 1970, s. 2(a).
2 This portion was added, ibid., s. 2(b).
3 Section 21A was inserted by Mah. 7 of 1970, s. 3.
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(3) Nothing in this section shall impair the rights of an alienee or the holder of an incumbrance in
good faith and for valuable consideration.
1[22A. Value of property debtor to be determined by Court in prescribed manner. — (1)
Subject to the provisions of sub -sections (2) and ( 3), the value of the property and other assets of a
debtor for the purposes of ascertaining his paying capacity under section 21A shall be determined by
the Court in the prescribed manner.
(2) The property or assets which are exempt from attachment in execution of a decree of a Civil
Court under the Code of Civil Procedure, 1908 (V of 1908) shall not be taken into account.
(3) The market value of the lands, which under any law for the time being in force , are not
transferable or alienable except with the previous sanction of the Collector or the State Government,
shall be calculated in such manner as may be prescribed.
22B. Paying capacity of debtor. — The paying capacity of a debtor shall, for the purpo ses of
this Act, be deemed to be 60 per cent. of the market value of all the property of the debtor :
Provided that, when any portion of such property yields income, but the market value of such
portion cannot be determined, the value of such portion shal l be the amount of the income capitalised
at 6 per cent. per annum.
22C. Debts payable by debtors to be further scaled down. — (1) Notwithstanding any decree
of a Civil Court referred to in sub -section (1) of section 3 of the Madhya Pradesh Act, the amoun ts
found due under section 18 from a debtor shall be further scaled down in the manner hereinafter
provided.
(2) If all the debts found due by a debtor after taking accounts under section 18 are unsecured
debts, and the total amount of such debts is more than 60 per cent. of the value of the property
belonging to the debtor, such debts shall be further scaled down pro rata to the paying capacity of the
debtor.
(3) If all the debts found due by a debtor after taking accounts under section 18 are secured de bts,
and the total amount of such debts is more than 60 per cent. of the value of the property belonging to
the debtor, such debts shall be further scaled down pro rata to the paying capacity of the debtor.
(4) If the debts found due by a debtor after taki ng accounts under section 18 are both secured and
unsecured, and if the total amount of the secured debts is more than 60 per cent. of the value of the
property on which such debts are secured, the secured debts shall be further scaled down pro rata to 60
per cent. of the value of the property on which such debts are secured, and the unsecured debts shall be
further scaled down pro rata to 60 per cent. of the value of the other property belonging to the debtor
over which no debts are secured.]
23. Award.— (1) After determining the amount of the debts due to the creditors in accordance
with the provisions of section 18, the Court shall make an award.
(2) The award shall be in the prescribed form and shall be drawn up subject to the following
provisions :—
(i) the amount of the secured debts 2[scaled down] shall be charged on the properties on
which they may have been secured;
3* * * * * *
(iii) in fixing the priority in which debts shall be paid, the following order shall be
followed :—
1 Section 22A to 22C were inserted by Mah. 7 of 1970, s. 4.
2 These words were inserted by Mah. 7 of 1970, s. 5(a).
3 Clause (ii) was deleted ibid., s. 5(b).
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(a) debts due to Government which are charged on the immovable property belonging
to the debtor or which are recoverable as the current year’s land revenue,
(b) debts due to local authorities, which are charged on the immovable property
belonging to the debtor or which are recoverable as the current year’s dues,
(c) loans given by resource societies or by persons authorised to advance loans under
section 50 of this Act,
(d) secured debts in order of priority,
(e) other debts due to co-operative societies not being resource societies,
(f) debts due to notified banks,
(g) unsecured debts :
Provided that, in the case of unsecured debts, they shall be paid pro rata.
Explanation.— In this clause, “notified bank” means a bank incorporated in any part of the State
and notified by the State Government in the Official Gazette, for the purposes of this Act as a notified
bank.
(iv) the total annual instalments shall not exceed twelve :
Provided that, the fixing the amount of instalments in which the debts shall be paid, the Court
shall ascertain the net annual income of the debtor, and the annual instalments payable by the debtor
shall not exceed his net annual income.
Explanation.—For t he purposes of this clause, the net annual income of the debtor means the
balance of his annual income after deducting ( i) such sum as may be considered necessary for the
payment of the liability, if any, imposed on the debtor under a decree or order for m aintenance passed
by a competent Court, (ii) such sum as may be considered necessary for the maintenance of the debtor
and his dependants, that is to say, his spouse and his children, whether married or unmarried, his
parents, sisters and daughters-in-law, if such persons (other than the spouse) are depending on him for
their maintenance, and (iii) the sum required by the debtor to pay the assessment and taxes in respect of
the current year to Government and to local authorities and to pay off loans borrowe d for the purpose
of the financing of crops or seasonal finance under any law;
(v) the Court may pass an order for the delivery of possession of any property,
notwithstanding any law or contract to the contrary;
(vi) the rate of interest shall not exceed 6 per cent. per annum or such less rate as may be
notified in this behalf by the State Government or the rate agreed upon between the parties when
the debt was originally incurred or the rate allowed by the decree in respect of such debt,
whichever is the lowest.
24. No recovery of a amount in excess of debts reduced.— The amount of debts reduced under
section 18 1[or further scaled down under section 22C] shall, for the purposes of this Act, be the
amount due by the debtor in respect of the said debts, and the portion of the debts in excess of this
amount shall be extinguished.
25. Ex-parte proceeding, if any party does not appear.— (1) Notwithstanding that the person,
for the adjustment of whose debts an application has been made under section 3 or any of his creditors,
does not appear on the date fixed for the hearing of the application or on any date to which t he hearing
may be adjourned, the Court shall proceed ex-parte to hear the application, decide the preliminary
issues and, if necessary, make the award, on the evidence available.
(2) When an application made under section 3 is heard and disposed of ex-parte under sub -
section (1), the decision on the preliminary issues or the award shall not, except for sufficient reasons,
be re-opened merely on the ground that any of the parties thereto did not appear at the hearing.
1 These words, figures and letter were inserted by Mah. 7 of 1970, s. 6.
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26. Awards to be registered; how execu ted.— (1) Every award made under this Act if it is in
respect of debts charged on the properties of the debtor shall, on payment of the court -fee payable
under section 33, be registered in the manner provided in Chapter III.
(2) The court-fee on the award shall be paid by the party ordered by the Court to bear the costs :
Provided that, any creditor who is not ordered to bear the costs may pay such court -fee. Such
creditor shall be entitled to recover the amount of court -fee paid by him from the debtor with the first
instalment payable to him under the award :
Provided further that, no court-fee shall be payable by a co-operative society.
(3) The award shall be executed as follows :—
(i) If the debtor makes default in the payment of any instalment due under the award to any
creditor, such creditor may apply in the prescribed form to the Court for execution of the award.
(ii) If the Court, on receipt of such application, is satisfied that the debtor has made default
in the payment of the instalment, the Court shall transfer the award for execution to the Collector;
and thereupon, the Collector shall recover the amount of the instalment from the debtor as arrears
of land revenue :
Provided that, nothing in clauses ( i) and (ii) shall affect the right of Government or a local
authority or co-operative society to have recourse to any mode of recovery allowable by any law
for the time being in force.
(iii) If the Court has passed an order for the delivery of possession of any property under
clause (v) of sub-section (2) of section 23, such order shall, on the application, be executed by the
Court as if it were a decree passed by it.
27. Postponement of payment of instalment in case of remissions, etc. — (1) Whenever from
any cause, the payment of one -half or more of the land revenue payable to the State Government is
suspended or remitted under the Code, the payment of the whole of the instalment due for that year,
and the full amount of the instalment due for each subsequent year under an award made under sections
6, 7 or 23 shall be postponed for one year.
(2) Whenever from a ny cause the payment of any portion less than one -half of the land revenue
payable to the State Government is suspended or remitted under the Code, one -half of the amount of
the instalment for that year and the full amount of the instalment due for each subsequent year under an
award made under sections 6, 7 or 23 shall be postponed for one year.
28. No alienation by debtor before discharge of debts valid. — Notwithstanding any law or
contract but subject to the provisions of section 29 and section 49, no a lienation of any property
belonging to a debtor, made before all his debts are discharged, shall be valid except with the previous
sanction of the Court if the debtor is a party to any proceedings under this Act, or to an award
registered under this Act.
29. Court may order sale of debtor’s property in liquidation of his debt.— If the Court or the
Court hearing an appeal against the award, is at any time satisfied that it is in the interest of a debtor
that any part of his property should be sold in liqui dation of his debt or part thereof, such Court may
permit the debtor to sell such part of the property for such purpose within a specified period. If the
debtor fails so to sell it, such Court may order an officer of the Court to sell the same. The propert y
ordered to be sold under this section shall be sold by such officer in the manner prescribed :
Provided that, the part of the property ordered to be sold under this section shall not exceed the
part liable to be sold under sub-section (3) of section 42.
30. Pleaders, etc., excluded from appearance. — Except in proceedings under section 22 and
sub-section (3) of section 26, no legal practitioner shall be entitled to appear on behalf of any party in
any proceeding before the Court or the Court in appeal under this Act :
1969 : Mah. XXII] The Maharashtra (Vidarbha Region) Agricultural 13
Debtors Relief Act, 1969
Provided that, the Court or the Court in appeal in the interest of justice for reasons to be recorded
in writing may allow the parties to be represented at their own cost by a legal practitioner :
Provided further that, no fees shall be allowed as part of the costs for the appearance of any legal
practitioner in any proceeding under this Act :
Provided also that, if any officer of Government is appointed or declared by a competent court or
is authorised, under any law for the time being in force as a guardian, administrator or manager of the
property of a person who is under a legal disability or is incompetent or unable to manage or to act,
such officer shall be entitled to appear through a representative authorised by him in writing in this
behalf in any proceedings before the Court or the Court in appeal. Such representative may also submit
any application, and otherwise act on behalf of the officer in any such proceedings.
31. Appeals. — Notwithstanding anything contained in any other law—
(1) an appeal shall lie—
(i) from every order passed under sub-section (3) of section 6:
(ii) from every decision or order made under section 15;
(iii) from every declaration or order made under section 32;
(iv) from every order passed under sub-section (2) of section 25;
(v) from every award made under this Act other than an award made in terms of a settlement
under sub-section (4) of section 6 or under section 7;
(vi) from an order made under sub-section (1) or (2) of section 42 adjudicating the debtor an
insolvent :
Provided that, no appeal shall lie from such order, except on the ground that the insolvent has
failed to disclose all the material facts relating to his assets and liabilities;
(2) an appeal from the Court shall lie to the District Court, and the appeal shall be made within
sixty days from the date of the order, decision, declaration or award. In computing the period of sixty
days, the provisions contained in sections 4, 5 and 12 of the Limitation Act, 1963 (XXXVI of 1963),
shall, so far as may be, apply;
(3) no second appeal shall lie against any order, decision, declaration or award of the Court under
this Act.
32. Power of District Judge to refer for dis posal certain appeals to Assistant Judge or Civil
Judge empowered to hear appeals. — A District Judge may refer for disposal any appeal filed under
the last preceding section to an Assistant Judge or a Civil Judge invested with power to hear appeals
under section 27 of the Bombay Civil Courts Act, 1869 (XIV of 1869).
33. Court-fees.— (1) Notwithstanding anything contained in the 1Bombay court-fees Act, 1959
(Bom. XXXVI of 1959), the court-fee payable in respect of proceedings under this Act shall be at the
following rates :—
(i) on an application under sub -section (1) of section 3 or of section 6 or on an award under
sub-section (4) of section 6 or section 7—Re. 1;
(ii) on an award other than an award specified in clause ( i)— Re. 1 for every hundred
rupees, or part thereof, of the amount of the award, subject to a maximum of Rs. 50;
(iii) on an appeal against a decision of the Court under sub -section ( 3) of section 6 or
sub-section (2) of section 15— Rs. 2;
(iv) on an appeal other than an appeal specified in clause ( iii)—Re. 1 for every hundred
rupees, or part thereof, of the amount involved subject to a maximum of Rs. 50.
1 The short title of this Act has been amended as “the Maharashtra Court-fees Act” by Mah. 22 of 2012, Sch.,
w.e.f. 1-5-1960.
14 The Maharashtra (Vidarbha Region) Agricultural [1969 : Mah. XXII
Debtors Relief Act, 1969
(2) Notwithstanding anything contained in any law, the court -fees payable in respect of
proceedings under this Act shall be a first charge on the property of the party ordered to pay the costs
and shall be recoverable in such manner as may be prescribed.
34. Notice how served.— Any notice required to be served under this Act shall be served in th e
manner provided in the Code of Civil Procedure, 1908 (V of 1908); and when rules are made in that
behalf, in such manner as may be prescribed.
35. Provisions of Civil Procedure Code to apply to proceedings. — Save as otherwise
expressly provided in this Act the provisions of the Code of Civil Procedure, 1908 (V of 1908) shall
apply to all proceedings under this Chapter :
Provided that, the Court may, in a proper case and on such terms as may appear to it to be just,
exercise its powers to add or strike out parties under rule 10 of Order I in the First Schedule to the said
Code (V of 1908) in any proceeding pending before it under section 3, notwithstanding the fact that
such addition, or striking out of parties is to be made after the date specified in section 3 has elapsed.
CHAPTER III
REGISTRATION OF AWARDS
36. Debt Adjustment Register and Index. — In all registration offices a book called “Register
of Debt Adjustment Awards” and an Index relating thereto shall be kept. The book and index shall be
kept in such form and shall contain such particulars as the State Government may prescribe.
37. Court to send award and memoranda to Registrars and Sub -Registrars.— Where an
award is required to be registered under section 26, it shall be the duty of the Court making the award
to send to the Sub-Registrar of the sub-district in which the property which is the subject-matter of the
award or any part of such property is situated, or if there is no Sub -Registrar for the area, to the
Registrar of the district in which the property or its part is situate, a certified copy of the award after the
court-fee has be en paid thereon in accordance with the provisions of section 33 together with a
memorandum containing such particulars as the State Government may prescribe.
38. Notice of appeals to R egistrars.— If a party files an appeal against an award under section
31 and if such award has been registered under section 26, it shall be the duty of the Court in which the
appeal is filed to send to the Sub -Registrar or the Registrar to whom a certified copy of the award has
been sent under section 37, a notice regarding the institution of the appeal.
39. Registration.— After the expiry of the period provided for an appeal against an award, if no
appeal is filed, or if an appeal is filed after the disposal of the said appeal, the Sub -Registrar or the
Registrar, as the case may be, shall register the award in the Register of Debt Adjustment Awards and
shall also enter particulars in the Index kept under section 36.
40. Notice of awards. — Any person acquiring any property or any part of, or any share or
interest in, the p roperty of a debtor for the adjustment of whose debts an award has been made and
registered shall be deemed to have notice of the award from the date of its registration under this
Chapter.
41. Application of Indian Registration Act. — Except as herein provided, the provisions of the
Indian Registration Act, 1908 (XVI of 1908), shall mutatis mutandis apply to the registration of
awards, and the words and expressions used in this Chapter but not defined in this Act shall have the
meanings assigned to them in the Indian Registration Act, 1908 (XVI of 1908).
CHAPTER IV
INSOLVENCY PROCEEDINGS
42. Court to declare debtor insolvent in certain circumstances. — (1) If at any stage of the
proceedings under Chapter II, the Court finds that the income of the debtor a nd his moveable property
1969 : Mah. XXII] The Maharashtra (Vidarbha Region) Agricultural 15
Debtors Relief Act, 1969
are not sufficient to allow his debts to be liquidated by annual instalments not exceeding twelve in
number, the Court shall make an order adjudicating the debtor an insolvent.
(2) If at any time after the expiration of two years from the date of an award, the debtor satisfies
the Court that there is no reasonable probability of his being in a position to pay the remaining amount
of instalments fixed under the award, the Court may, notwithstanding anything contained in this Act,
after giving notice to the creditor modify the terms of the award, and reduce the amount of the
instalment as it may think fit, provided that the total annual instalments in which the balance of the
debts shall be paid in such instalments shall not exceed tw enty or the Court may make an order
adjudicating the debtor an insolvent.
(3) After the debtor has been adjudicated an insolvent, the Court shall direct that such portion of
the property of the debtor (being property liable to attachment and sale under section 60 of the Code of
Civil Procedure, 1908 (V of 1908) excluding such portion thereof as the State Government shall, from
time to time, notify in the Official Gazette as the minimum necessary for the maintenance of the debtor
and his dependants) referred to in section 29 as may be required to liquidate all the debts of the debtor,
shall immediately be sold free of all encumbrances in liquidation of all debts outstanding against such
debtor.
43. Procedure in insolvency proceedings. — The order of adjudication made under sub -section
(1) or (2) of section 42 shall have the force of an order made by a competent court in the exercise of its
powers under section 27 of the Provincial Insolvency Act, 1920 (V of 1920).
44. Distribution of a ssets of insolvent.— The proceeds realised by the sale of the property of
the insolvent under section 42 shall be distributed in the order of priority specified in clause ( iii) of
sub-section (2) of section 23.
45. Bar to application in insolvency in oth er courts.— No application or proceeding in regard
to the insolvency of a debtor shall lie in, or shall be dealt with by, any other court.
46. Appeals barred.— Save as provided by sub-clause (vi) of clause (1) of section 31, no appeal
shall lie from any order passed under this Chapter.
CHAPTER V
MISCELLANEOUS
47. Bar of civil suits or proceedings. — Except as otherwise provided by this Act and
notwithstanding anything contained in any other law, no civil court shall entertain or proceed with any
suit or proceeding in respect of—
(i) any matter pending before any Court under this Act, or
(iExcerpt shown. Open the full act in Lexace.