The ODISHA DISPLACED PERSONS (REHABILITATION LOANS) ACT, 1955

Orissa Act No. 18 of 1956
THE ORISSA DISPLACED PERSONS
(REHABILITATION LOANS) ACT, 1955
[Received the assent of the Governor on the 21st June 1954, first published in an
extraordinary issue of the Orissa Gazette, dated the 12 th July 1956.]
AN ACT TO PROVIDE FOR THE GRANT OF LOANS TO DISPLACED
PERSONS IN THE STATE OF ORISSA FOR THEIR REHABILITATION
AND FOR RECOVERY THEREOF.
WHEREAS it is expedient to provide for the grant of loans to displaced
persons in the State of Orissa for their rehabilitation and for the recovery thereof:
It is hereby enacted by the Legislature of the State of Orissa in the Sixth
Year of the Republic of India as follows :
1. Short title, extent and commencement. - (i) This Act may be called
the Orissa Displaced Persons (Rehabilitation Loans) Act, 1955.
(ii) It extends to the whole of the State of Orissa.
(iii) It shall come into force at once.
Statement of Objects and Reasons. - Rehabilitation loans are at present
granted by the State Government of Orissa to displaced persons from East and
West Pakistan on execution of agreements by them for re-settlement in Orissa.
A large number of cases of displaced persons who have deserted the S tate
without refunding the amount of loans advanced to them has come to the notice
of the State Government who are experiencing difficulties in recovering the loans
from such displaced persons on the strength of the loan, bonds executed by
them as according to the terms of the loan bonds, the Government dues are
recoverable under the Bihar and Orissa Public Demands Recovery Act, 1914
which has no extra-territorial application. It has, therefore, become necessary to
make statutory provisions for the grant of loans to displaced persons and recovery
of the same from them. The Bill is therefore, designed to incorporate provisions
for the grant of rehabilitation loans, and for the recovery of loans granted to displaced
persons since 1950 as an arrear of land revenue.
* For Statement of Objects and Reasons, see Orissa Gazette Extraordinary/25.8.1955.
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. Date : 12th July 1956
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2. Such a Bill has already been passed by the State of Bihar and the other
States n the Eastern Region are also taking steps to pass such a Bill.
2. Definitions. - In this Act, unless there is anything repugnant in the
subject or context-
(a) "Border slip" means, slip issued between the 1st day of March, 1950
and the 15th day of October , 1952 inclusive at the interception point s on the
border of India and Pakistan at Bongaon and Banpur in the State of West-Bengal
under the orders of the Refugee Rehabilitation Commissioner, West-Bengal;
(b) "Borrower" means a displaced person or a company, association or
body of displaced persons whether incorporated or not to whom a loan has been
granted under this Act and includes the heirs, successors and assigns of a
borrower;
(c) "Collector" means the Collector of the district and includes the Additional
District Magistrate of the district and any other officer specially appointed by the
State Government to perform the functions of a Collector under this Act;
(d) "Company" means a company as defined in the Indian Companies
Act, 1913 (Act VII of 1913);
(e) "Director of Relief and Rehabilitation" means an officer appointed as
such by the State Government;
1[(f) "Displaced person" means a person who was ordinarily resident in
the territories now comprised in East Pakistan but who on account of civil
disturbances or the fear of civil disturbances or on account of the partition of
India, has migrated-
(i) from the district of Noakhali or the district of Comilla now forming
part of East Pakistan on or after the 1st day of October, 1946; or
(ii) from any other place in East Pakistan on or after the 1st day of
June, 1947;
to the territories now included in the Union of India, with the intention of
taking up permanent residence within such territories :
Provided that where, even though the head of the family of a person is not
a displaced person but the individual status as displaced persons of other member
of the family justify in the opinion of the State Government that the provisions of
this Act shall apply to such person, then such person may be declared to be a
displaced person.]
(g) "Loan" means a loan granted under the provisions of this Act in cash or
in kind, and shall include any sum referred to in Subsection (4) of Section 4;
(h) "Migration Certificate" or "Emergency Certificate" means certificate
issued by the Deputy High Commissioner for India at Decca in East Pakistan
under Scheme No. 7 of the Government of India's Scheme of Passport system to
regulate the Entry of Pakistan Nationals into India and Facilities for Indian Nationals
1. Substituted vide Orissa Act 23 OF  1959
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to visit Pakistan to person who being domiciled in Pakistan at the date of issue
of the certificate has declared his intention to leave Pakistan and settle in India;
(i) "prescribed" means prescribed by rules made under this Act; and
(j) "sanctioning authority" means the authority who sanctions a loan.
3. Application for loan. - A displaced person may submit to the Collector
within whose jurisdiction he resides or carries on any trade, profession or calling
or intends to do so, an application for loan in such form as may be prescribed.
4. Sanction of loans. - (1) The Collector may, subject to any general or
special direction of the State Government sanction loans not exceeding such
amount as may from time to time be fixed by the S tate Government ; and he
shall forward to the Director , Relief and Rehabilitation with his remarks such
applications as require loans exceeding the amount he is authorised to sanction.
(2) The Director, Relief and Rehabilitation may, subject to any general or
special direction of the State Government, sanction loans not exceeding such
amount as may be fixed by the State Government.
(3) The Director, Relief and Rehabilit ation shall forward to the S tate
Government with his remarks such applications as require loans exceeding the
amount he is authorised to sanction and the State Government may, thereupon,
sanction such amount of loan as they think fit.
(4) Any sum assessed on a displaced person by the State Government
out of the expenditure incurred by the State Government on reclamation of land,
irrigation, health and sanction trade and business and establishment of colonies
for the rehabilitation of displaced persons shall be deemed to be a loan sanctioned
under this section.
5. Advance of loans and execution of loan bonds. -  (1) The loan
sanctioned under Section 4 may be advanced in one lump sum or in instalments
according as the sanctioning authority may in its discretion decide.
(2) Before receiving the advance of loan the borrower shall execute a bond
in the prescribed form undertaking to apply the amount of loan solely for the
purpose for which, and to comply with the terms and conditions on which, the
loan is sanctioned and such bond shall include any sum referred to in Sub-
section (4) of Section 4, and in the event of the loan being advanced in instalments
a bond in the form so prescribed shall be executed on receipt of each such
instalment.
6. Security for loan. -  (1) All assets acquired with the loan shall be
deemed to be mortgaged or hypothecated, as the case may be, to the S tate
Government for re-payment of the loan with interest due thereon and the amount
of the loan and the interest thereon shall be the first charge on such assets.
(2) Subject to the provisions of Sub-section (1) the borrower may with the
prior approval of and subject to such conditions and restrictions, if any, imposed
by the Collector, mortgage, convey or otherwise transfer any of his interests in
the whole or any part of assets acquired with the loan and any mortgage,
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conveyance or other transfer without such approval or in contravention of such
restrictions and conditions, if any, shall be void as against the State Government:
Provided that nothing in this section shall affect the borrower's; right to
transfer such articles of his stock-in-trade as are meant for transfer to customers
and others in the normal course of business.
7. Inspection of assets. - Any person authorised in this behalf by the
sanctioning authority or the Collector may enter any place or premises for
inspecting any land construction, machinery, appliance, materials or stock-in-
trade acquired or hired or proposed to be acquired or hired by any borrower with
the loan granted to him.
8. Information, to be furnished by borrower. - The borrower shall be
bound to furnish any information which the sanctioning authority or the Collector
may require relating to the purpose or purposes for which the loan was advanced,
the manner in which the loan has been or is being utilised and the financial
position of the borrower.
9. Power to require re-payment before due period. -  (1)
Notwithstanding anything in any agreement or in any of the other provisions of
this Act or the rules made thereunder, the Collector may, after giving the borrower
an opportunity to show cause, order the borrower to re-pay the loan in full or any
part thereof, with interest, within such time as may be specified in the order
under one or more of the following circumstances, namely ;
(i) if the borrower has furnished any false or misleading information or
has suppressed any fact in obtaining the loan; or
(ii) if the borrower fails to comply with the terms and conditions under
which the loan has been sanctioned; of
(iii) if the Collector is satisfied that the borrower has applied any portion
of the loan for purposes other than those for which it was granted;
or
(iv) if the borrower has wilfully or by negligence caused material
deterioration to the assets acquired with the loan; or
(v) if the borrower obstructs any person from entering any place or
premises or making an inspection in exercise of powers conferred
by or under this Act; or
(vi) if the borrower fails to furnish any information required by the
sanctioning authority or the Collector; or
(vii) if the Collector considers it essential to effect immediate recovery
of the loan in order to protect the interest of the State Government.
(2) An appeal shall lie to the State Government against an order passed
under Sub-section (1) within such period and in such manner as may be prescribed
and the decision of the State Government thereon shall be final.
Note - Under this section, the Collector is empowered to direct borrower
to repay the loan in full or in part thereof with interest before the due period.
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10. Power to postpone realisation. - Notwithstanding anything contained
in this Act or the rules made thereunder the S tate Government or such other
authority as may be prescribed may postpone the realisation of any instalments
of the loan with interest due thereon.
11. Power to make recovery or to take over assets. - If the borrower
fails to re-pay any amount of the loan or to pay any interest thereon under the
terms and conditions of the loan or under the provisions of Section 9, the Collector
may without prejudice to any other method of recovery-
(a) recover as arrears of land revenue such loan, instalments, interest
or any cost incurred in recovering the loan with interest and also
incidental expenses incurred in issuing the loan; and
(b) take over in whole or in part, the assets acquired with the loan on
such terms and conditions as may be determined by the S tate
Government.
12. Delegation of powers. - Subject to the provisions of this Act-
(i) the State Government may, by order delegate all or any of its powers,
duties and functions under this Act or the rules made thereunder to
any officer under its control; and
(ii) the Director of Relief and Rehabilitation or the Collector may, with
the sanction of the State Government, delegate any of his powers,
duties and functions under this Act to any other officer under the
control of the State Government.
13. Protection of action taken under the Act. - No suit, prosecution or
other proceedings shall lie against any person for anything in good faith done or
intended to be done in pursuance of this Act or any rule or order made thereunder.
14. Remission of st amp duty and registration fee. -  The S tate
Government may, by notification, remit the stamp duty under any law for the time
being in force or any fee under the law of registration for the time being in force,
chargeable or any instrument executed under this Act or the rules made thereunder
by or on behalf of a displaced person.
15. Retrospective application of the Act to prior loans. -
Notwithstanding anything contained in any law for the time being in force and the
provisions of this Act every loan granted since the first day of March, 1947 to a
displaced person for his rehabilitation by the State Government or by any officer
or authority subordinate to the State Government shall, for the purpose of it s
recovery, be deemed to be a loan granted under this Act and the provisions of
this Act relating to re-payment and recovery of loan shall apply to such loan.
16. General powers of superintendence, direction and control of
the Director of Relief and Rehabilitation. - The Director of Relief and
Rehabilitation shall, for the purpose of this Act, have general powers of
superintendence, direction and control over the Collector.
17. Bar of jurisdiction of Court. - The decision of the State Government
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as to whether the conditions of this Act have been satisfied shall be final, and
any order passed under this Act shall not be questioned in any Court of law.
18. Power to make rules. - (1) The State Government may make rules
for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely :
(a) the forms of application for loan, order of the sanctioning authority,
the bond and any other instrument to be executed by the borrower
and the notices and directions issued by the sanctioning authority
and other authorities;
(b) the terms and conditions of loans and fixation of instalments;
(c) the fixation of the rate of interest and the manner of calculation
thereof;
(d) the extent and manner of issue of loans and the procedure for
realisation;
(e) the form and manner in which account and registers are to be
maintained;
(f) the manner and circumstances in which remission of principal or
interest may be granted as suspension of realisation may be allowed;
(g) the manner in which and the period within which an appeal under
Sub-section (2) of Section 9 may be preferred;
(h) the manner and the machinery for investigation into applications for
loans and into the proper utilisation of the loan money; and
(i) all matters which are required to be or may be prescribed.

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