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The Meghalaya Rural Indebtedness Relief Act,1976 (Act No.5 of 1976)

Meghalaya · state statute
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ME
GHALAYA ACT 5 OF 1976 
THE MEGHALAY RURAL INDEBTEDNESS RELIEF ACT, 1975. 
(As passed by the Assembly) 
[Received the assent of President on the 18th March, 1976] 
 
(Published in the Gazette of Meghalaya, Extraordinary, dated 23rd March, 1976) 
An 
Act 
to provide for relief of rural indebtedness in Meghalaya. 
 
Be it enacted by the Legislature of Meghalaya in the Twenty-sixth Year of the Republic of 
India as follows:- 
Short title,extent and 
commencement. 
(i) (1) This Act may be called the Meghalaya Rural 
Indebtedness Relief Act, 1975. 
 
(2) It shall extend to the whole of Meghalaya. 
 
(3) It shall come into force at once. 
 
 
Definitions. (ii) In this Act, unless there is anything repugnant in the 
subject or context – 
 
 
(a) “agriculture” includes horticulture, dairy farming, 
pisciculture, forestry, sericulture, bee -keeping, 
piggery, poultry farming and growing of fruits, 
vegetables and the like; 
 
 
 
 
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(b) “agriculture labourer” means a person who follows 
any one or more of the following agricultural 
occupations in the capacity of a labourer on hire or 
exchange, whether paid in cash, in kind or partly in 
cash and partly in kind:- 
 
i. Farming including cultivation and 
tillage of soil,etc.; 
 
ii. Dairy farming; 
 
iii. Productions, cultivation, growing 
and harvesting of any horticultural  
commodity; 
 
iv. Raising of livestock, bees or poultry; 
and  
 
v. Any practice performed on a farm as 
incidental to or in conjunction with 
farm operations (including any 
forestry or timbering operations) and 
preparation for market and delivery 
to storage or to market or to carriage 
for transportation of farm products. 
 
 
 (c) “bank” means a banking company as defined in 
clause (c) of section 5 of the Banking Regulation 
Act, 1949 (Act 10 of 1949) and includes the State 
Bank of India Act, 1955 (Act 23 of 1955), a 
subsidiary bank as defined in the State Bank  of 
India (Subsidiary Banks) Act, 1959 (Act 38 of 
1959), a corresponding new bank as defined in the 
Banking Companies (Acquisition and Transfer of 
Undertakings) Act, 1970 (Act 5 of 1970) and 
includes any other f inancial institution which may 
be notified in this behalf by the State Government; 
 
(d) “debt” includes all liabilities owing to a creditor in 
cash or in kind, secured or unsecured, payable 
under a decree or order of a civ il court or 
otherwise and subsis ting o n the date of 
commencement of this Act, whether due or not 
due, but does not include the following, namely:- 
 
 
(i) any debt or sum due to the Central 
Government or any State Government ; 
 
 
(ii)  any debt or sum due to a bank, a co-
operative society including a co-operative 
bank ; 
 
 
 
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(iii) any debt or sum due to an Agricultural 
Refineries Corporation, a Corporation 
constituted under the Agricultural 
Refinance Corporation Act , 1963 (Act 10 
0f 1963); 
 
(iv) any debt or sum recoverable as a public 
demand under the Meghalaya Public 
Demands Recovery act (Bengal Act 3 of 
1913 as adapted by Meghalaya); 
 
(v) any debt  or sum due to a Municipality, a 
Town Committee constituted or 
established under any law or a statutory 
authority including a District Council ; 
 
(vi) any debt which represents the price of 
goods purchased by a debtor ; 
 
(vii) any liability arising out of breach of trust 
or tortious liability ; 
 
(viii)  any liability in respect of maintenance 
whether under a decree o f a court or 
otherwise ; 
 
(ix) any liability in respect to wages or 
remuneration due as salary or otherwise 
of service rendered ; 
 
(x) any rent due in respect of any property let 
out to a debtor. 
 
Explanation.- Any liability incurred by a debtor on 
                      or after the commencement of this  
                        Act, which is in fact , a substitution  
                        of a liability previously incurred by  
                      him shall be deemed to be debt  
                      within the meaning of this Act. 
 
 (e) “debtor” means a person who is resident 
outside an area included in a municipality or a 
cantonment and who belongs to any of the 
following categories, namely:- 
 
(i)  agriculture labourer, 
(ii) Marginal farmer, 
(iii) Rural artisan, 
(iv) Small farmer, 
 
 
 (f) “farmer” means a person who is engaged in 
agriculture ; 
 
 
 
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 (g) “loan” means an advance, whether of money or 
in kind, made on condition of repayment with 
interest and includes any transaction which is in 
substitute a loan; 
 
 
 (h) “marginal farmer” means a farmer who owns 
land measuring not more than half hectare of 
irrigated or one hectare of unirrigated land and 
who cultivates personally such land and shall also 
include a farmer who cultivates as a tenant or share 
cropper of land measuring not more than half 
hectare of irrigated land or one hectare of 
unirrigated land ; 
 
 
 (i) “rural artisan” means a person who does not 
hold any agricultural land and whose principal 
means of livelihood is production or repair of 
traditional tools,  implements and other articles or 
things used for agriculture or purposes ancillary 
thereto and also a person who normally earns his 
livelihood by practising a craft either by his own 
labour or by the labour of the members of his 
family in the rural area ; 
 
 
 (j) “small farmer” means a farmer who owns land 
measuring more than half hectare of irrigated or 
one hectare of unirrigated land but less than one 
hectare of irrigated or two hectares of unirrigated 
land and shall also include a farmer who cultivates 
as a tenant or a share cropper of land measuring 
more than half hectare of irrigated or one hectare 
of unirrigated land but less than one hectare of 
irrigated or two hectare of unirrigated land ; 
  
 
 (k) “member of Scheduled Tribe” means a person 
belonging to any of the Scheduled Tribes 
pertaining to Meghalaya and as specified in the 
Constitution (Scheduled Tribe) Order,1950 as 
amended from time to time. 
 
 
 
 
 Explanation:- In case where a farmer is a member 
                        of Scheduled Tribe, the words “half 
                     -hectare”, “one hectare” and “two 
                      hectares” wherever occurring in  
                      clauses (h) and (j) of this section  
                        shall be read as “one hectare”, “two 
                      hectares” and “four hectares” 
                        respectively, for the purposes of the  
                     said clauses. 
 
 
 
 
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Moratorium on the 
recovery of debt and 
stay of suits. 
3. (1) Notwithstanding anything contained in any other 
law for the time being in force or in any contract, 
customs or usage to the contrary, the recovery of debt 
advanced before the commencement of this Act to a 
debtor shall stand suspended for a period of one ye ar 
from the date of commencement of this Act and – 
 
 
(i) no civil court shall entertain any suit, 
application or proceeding against a debtor in 
respect of any debt incurred by him or for the 
recovery of the debt suspended during the 
period of such suspension ; 
 
(ii) any suit, application or application or execution 
proceeding in relation to recovery of a debt 
pending before a civil court shall be stayed 
during the said period; 
 
(iii)  no decree or a civil court in relation to the 
recovery of a debt which was passed before the 
commencement of this Act shall be executed 
during the aforesaid period ; 
 
 
 
    (2) The State Government may, by notification in the 
official Gazette, extend the period referred to in sub -
section (1) from time to time but such extension shall 
not exceed a period of one year at a time. 
 
 
 
 
             Extension of 
period  of   
Limitation. 
4. Notwithstanding anything contained in any other law 
for the time being in force when the period of limitation 
is calculated for any suit, proceeding or application, or 
for execution of a decree, the period during which any 
person was debarred f rom institution such suit or 
proceeding or making such application or executing 
such decree shall be excluded. 
 
 
 
 
Remission  
                    of interest. 
5. A debtor shall not be liable to pay interest upon any 
loan during the period for which no suit or proceeding 
could be instituted or application made for recovery of 
the loan or for execution of a decree in relation thereto 
or for which a suit, application or proceeding for 
recovery of the loan was stayed. 
 
 
 
 
 Explanation: - For the purposes of sections 3 and 4 and  
                      this section, “Suit” includes appeal. 
 
 
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