The Nagaland Recovery of Loan Act 2007

The Nagaland Recovery of Loan 
Act, 2007 (Act No. 3 of 2007) 
Received the assent of the Governor ofNagaland on 29/08/2007 and published 
intheNagaland Gazette Extraordinary dated : 11" of January, 2008. 
To provide forrecovery, as public demands, of loans advanced by banks and 
other financial institutions. 
Preamble: Whereas it is expedient to make legal provisions for recovery, as 
public demands, of loans advanced by banks and other financial institutions under 
various schemes fiamed or approved by the Government omagaland, with the object 
of ensuring better recovery of such loans, and of improving credit flow to promote 
the process of development in the State; 
It is hereby enacted in the fifty third year of the Republic of India as follows:- 
1. Short Title, Extent and Commencement: 
(1) This Act may be called theNagaland Recovery of Loans Act, 2007. 
(2) It extends to the whole of the State 01 ~udgaland. 
(3) It shall come into force on such date as the State Government may, by a 
notificationin the official Gazette, appoint. 
2. Definitions: In this Act, unless there is anything repugnant in the subject or 
contexf 
(a) "Agriculture activity and purpose" include making land fit for cultivation, 
cultivation of land, improvement of land, including development of sources of 
irrigation, raising and harvesting of crops, planting and farming and cattle breeding, 
agriculture, sericulture, animal husbandary, horticulhue, pisciulture, dairy farming, 
poultry farming, forestry, piggery, beekeeping, growing of fits, vegetables and 
the like, raising of crops, grass or garden produce, keeping or breeding of 
liwstocks, grazing andsuchother allied activities includingmarketing of agricultutal 
products, their storage and transport and the acquisition of implements and 
machinery in connection with such activity. 
(b) "Ban!? means and includes - 
(viii) 
A "Bank" included in the second schedule to the reserve bank of India Act, 
1934 (Act No. 28 of 1934). 
The State Rank of India constitutedunder the State Bank of India Act, 
1955 (Act No. 23 of 1955). 
A Subsidiary Bank as defined in the State bank of India (Subsidiary 
Banks) Act, 1959 (Act No. 38 of 1959). 
A corresponding 'Wew Bank" as constituted in the banking Companies 
(Acquisition and transfer ofundertakings)Act, 1970 (ActNo. 5 of 1970. 
A "Co-operative Ban!? as defined in Section 56 of Banking Regulation 
Act, 1 949. 
ABanking Company as defined in the Bank Regulation Act, 1949. 
A Regional Rural Bank constituted under the regional Rural Bank Act, 
1976 (No. 21 of 1976). 
Any other financial institution notified by the State Government in the 
OEcial Gazette as a bank for the purpose of thisAct. 
"Certificate Officer" has the same meaning as in clause (3) of Section 
of the Bengal Public Demands Recovery Act, 1913 (Bengal No. of 
1913). 
"Financial Institutions" means:- 
Acompany of a body corporate as defined in the Companies Act, 1956 
(no. 1 1056 or 
A society registered under the Societies registration Act, 1860 (Act xxi 
of 1961), which is engaged in financing activities or has been constituted 
by any law for the time being in force and which is either owned by, or 
in which the majority shares are held by the State Government. 
"Industrial Activity" and "Purpose" include and activity or purpose for 
providing goods or services. 
"Persons" includes group of persons or a partnership firm or a limited 
company, either private or public, or a co-operative Societies registered 
under the Assarn Co-operative Societies Act, 1949 (Act No. 1 of 1950) 
applicable in the State ofNagaland. 
"Prescribed" means prescribed by rules made under this Act. 
"Scheme" means a scheme framed and 1 or approved for the purpose of 
this Act by the State Government for providing opportunities for 
employment or for assisting agricultural or industrial activities and 
purposes. 
"State Government" means the State Government of Nagaland. 
3. Recovery ofArrears of Loan as Public Demand : Any amount due to a bank 
or a fmancial institution any person respect of any amount advanced or granted 
under any scheme shall, apart kom any other mode of recovery be recoverable 
as an arrear of land revenue under the Bengal Public Demand Recovely Act, 
1913 (BengalAct,3 of 1913). 
Explanation:- The Provision ofthis section shall also apply to any amount advanced 
or granted by way of such loan before the date on which this Act comes into force 
and remaining unpaid on such day. 
4. Act to override the Bengal Public Demands Recovery Act 1913 in Certain 
Cases : Notwithstanding anything contained in the Bengal Public Demands 
Recovery Act, 1913 no appeal under Section 51 of the Bengal PublicDemands 
Recovery Act, 1913 against an order made by a cdicate oficer for recovery of 
any loan as public demand shall be admitted by the appellate authority unless the 
appellant deposits either 50% of thedues of the certificate or the amount admitted 
by the appellant to be due, whichever is higher. 
5. Power to make rules: 
(i) The State Government may, by notification in the Official Gazette, make 
rules for carrying out the purposes of this Act. 
(i) Any rule framed under this section may be given retrospective effect from a 
date not earlier than the date of coming into force of this Act. - 
(iii) Every rule under this section shall, as soon as may be after it ismade, be laid 
before theNagdandLegislative Assembly whle it is in session. 

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