The Punjab Settlement of Agricultural Indebtedness Act, 2016.

PUNJAB GOVT, GAZ. (EXTRA), MAY 4, 2016 
(VYSK J4, 1938 SAKA) 
PART I 
GOVERNMENT OF PUNJAB 
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIR 
PUNJAB 
NOTIFICATION 
The 4th May, 2016 
No. 18-Leg./2016.-The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 25th d 
April, 2016, is hereby published for general information:- 
45 
S, 
ay of 
THE PUNJAB SETTLEMENT OF AGRICULTURAL 
INDEBTEDNESS ACT, 2016. 
(Punjab Act No. 15 of 2016) 
AN 
ACT 
lo provide relief to agriculturists, agricultural labourers and other persons dependent upon agriculture, and to provide for fair and expeditious settlement of their debt related disputes and for the matters connected therewith or incidental thereto. 
Be it enacted by the Legislature of the State of Punjab in the Sixty- seventh Year of the Republic of India as follows :- 
1. (1) This Act may be called the Pur yab Settlement of Agricultural Short title and Indebtedness Act, 2016. 
commencement. 
(2) It shall come into force on and with effect from the date of its publication in the Official Gazette. 
2. In this Act, unless the context otherwise requires,- Osiinitions, 
(a) “agriculture” shall include horticulture and the use of the land for any purpose of husbandry inclusive of the keeping or breeding of livestock, poultry, piggery, fishery or bees and the cultivation of 
agro forestry and the like; 
(b) “agriculturist" means a person who owns or cultivates land and Whose means of livelihood is income from cultivation of such land Or partly by income from cultivation of such land and partly by income he gets as wages in cash or kind or partly in cash or partly in kind from other occupation he performs; 
(c) "agricultural labourer" means a person who follows any one or
(da) 
(e) 
(g) 
(h) 
2016 
VT. GAZ. (EXTRA), MAY 4, 
T_ SK 14, 1938 SAKA) 
| 
(VY stions in the capacity ofa labourer op 
1g ae ‘n cash or in kind or partly in cash 
         
more of the followtl a 
hire or exchange, whe 
and partly in kind:- itivation and tillage of soil, ete: 
(i) farming including cu é 
‘armi ‘isheries; i ry farming and f | 
ii) dairy fart | . 1 harvesting ot 
‘in roduction, cultivation, growing an & of any 
(iti) pr 5 ro" 
horticultural commodity; 
;an raising of livestock, fees or poultry; | 
any practice performed on a farm as incidental to or in 
. 
lon,wi ing any forestry 0 conjunction with farm operations (includ : y - ty - 
ber | i ‘market and delive timbering operations) and preparation for market a ry 
to storage or to market or to carriage for transportation of 
(iv) 
(v) 
farm products; 
"Bank" means,- 
() aScheduled Bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (Central Act No. 2 of 1934); and | 
(ti) any other financial institution notified by the State Government in the Official Gazette as bank for the purposes of this Act; "Civil Court" includes,- 
()  acourt exercising Jurisdiction under the Provincial Insolvency Act, 1920 (Central Act 5 of 1920); and (i) acourt exercisin £ powers under Courts Act, 188 7 (Centra| Act 9 "CO-Operative Society" 
registered under the Py 
the Provincial Small Cause 
of 1887). 
Means a socie 
Injab Co. "creditor" Means 4 per i debt: Person or ins 
ly registered or deemed to be Operative Societies Act, 1961; 
titution to Whom a debtor owes the 
a i . debtor in Cash or in kind secured or Othe a ec . 
. wise, whethe due or Not Ak h Order of a civil court or 
Shall not ing] ude, - Centr, ? al 
tab . rporatio Sovernmeng or State Government; €slablishe b Or For 
the ‘ 4M or any other organization Government Of Ing Vernmen ganiza 
dia “Nder the vole the State of Punjab or 
om
(i) 
PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 47 
(VYSK 14, 1938 SAKA) 
(iti) any debt incurred for the purposes of trade; 
(iv) any rent due in respect of any property let out toa debtor; 
(v) any debt due to a bank or cooperative society; 
(vi) any liability arising out of breach of trust or any tortuous liability; 
(vit) any liability in respect of wages or remuneration due as salary 
or otherwise for services rendered: 
(viii) a debt barred by law of limitation; 
(ix) land revenue or any other sum recoverable as arrears of land 
revenue; and 
(x) any liability in respect of maintenance whether under a decree 
of civil court or otherwise; 
"debtor" means a person who owes a debt and - 
(i) who earns his livelihood mainly by agriculture, and is either a 
land-owner, or tenant of agricultural land, or a servant of a 
land-owner or of a tenant of agricultural land; or 
(ii) who earns his livelihood as an agricultural labourer paid in 
cash or kind for work connected with agriculture; 
Explanation.-(a) The term debtor includes an agriculturist 
i) 
(k) 
()) 
notwithstanding the fact that he has joined service in the Armed 
Forces of the Union; provided that his family is engaged in 
agriculture; and 
(b) adebtor shall not lose his status as such because of the 
reason that- 
(i) heearns income by using his plough cattle or tractor 
for purposes of transport; or 
(ii) he does not cultivate with his own hands; 
"Forum" means the District Agricultural Debt Settlement Forum 
established under section 5 of this Act; 
"Government" means Government of Punjab unless the context 
otherwise requires; 
"notified" means notified by notification published by the Government 
in the Official Gazette; 
(m) “prescribed" means prescribed by rules made under this Act;
Deemed 
discharge. 
Calculation of 
interest, 
[:stablishment of 
District 
Agriculture Debt 
Settlement 
Forum. 
7. (EXT Y 4, 2016 PUNJAB GOVT. GAZ. (EXTRA), MA 
. (VYSK I4, 1938 SAKA) 
ar thi *t; and in) "rules" means rules made undet this Act; ¢ 
7 ry . 
" s the Punjab Agricultural Debt Settlement Tribuna| fo) "Tribunal" means the 
ti “this Act. established under section 6 of thi 
3. Notwithstanding anything contained in any other law for the time . fn aving the force of Jaw or 
being in force or in any contract or other insti ument having 
otherwise,- 
(a) every debt, together with any interest payable thereon, owed on . 
the commencement of this Act by a debtor, shall be deemed to be wholly discharged, if it is so decided/determined by an order in 
writing by the Forum or the Tribunal on an application filed under 
this Act; and 
(6) every property pledged or mortgaged by a debtor whose debt is deemed to be discharged under clause (cq) shall stand released and Shall vest in him free from all encumbrances when such debt is deemed to be discharged. 
4. The interest payable on the debt shall be calculated at such rate as may be notified by the Government. The interest payable on the debt, shall be simple interest calculated on yearly basis, 
5. (1) The Government shall establish a District Agri 
(2) The Forum shall Consist of three members to be appointed by the Government. 
(3) The Chairman of the Forum shall be i ‘ot ee 4 retired Distr Judge or a retired Additional Dict; " istrict and Sessions 
including a Chairman, 
eminent Persons, one 
representing community of fa credit h ad reditors who provide 
rmers and Other the agricultural loans: 
Provided that- 
() the Persons ap 
(ii) they Shall be a 
(i) they shall not Period of three years; and be eligible for "e-appointment
PUNJAB GOVT, GAZ. (EXTRA), MAY 4, 2016 
(VYSK 14, 1938 SAKA) 
(5) ‘The Forum shall have the jurisdiction to make settleme 
debtor and his creditor if - 
49 
nt between 
the 
(i) the loan has been taken by the debtor or provided by the 
creditor for agricultural purposes; and 
(ii) the total debt of the debtor does not exceed rupees fifteen lacs, 
6. (1) The Government shall establish a Punjab Agricultural Debt 
Settlement Tribunal (hereinafter referred to as Tribunal) comprising of three 
members including a Chairman. 
(2) The Chairman of Tribunal shall be a retired Judget ofa High Court. 
(3) Twomembers of the Tribunal shall be appointed by the Government 
from amongst the eminent persons having experience in social service, 
agriculture, financial services, banking and civil services: 
Provided that -* 
(i) the persons appointed as Chairman and members shal 
not be above the age of sixty-five years; 
(ii) they shall be appointed for a period of three years: and 
(iii) they shall not be eligible for re-appointment. 
7. 
including the Chairman. 
(1) The quorum of the Forum or the Tribunal shall be two members 
(2) Where the Chairman and members of the Forum or the Tribunal 
are not unanimous on any point or issue, the decision of the majority shall 
prevail. 
8.  Noact of the Forum or the Tribunal shall be deemed to be invalid 
by reason only of the existence of any vacancy of a member of the Forum or 
the Tribunal or of any procedural defect in the transaction of business of the 
Forum or the Tribunal. | 
9. (1) Adebtor or any of his creditors may apply to the Forum within 
whose jurisdiction, the debtor resides or holds any land to determine and settle 
the debt between the debtor and his creditor(s). 
(2) Anapplication to the Forum shall be made in writing and signed by 
the applicant. 
10. An application under this Act, shall be presented to the Chairman 
and it shall contain the following particulars, namely:- 
(a) in the case of a debtor - 
Establishment of 
Debt Settlement 
Tribunal. 
Transaction of 
business of the 
Forum and 
Tribunal. 
Acts of the 
Forum or the 
Tribunal not to 
be invalid by 
certain defects. 
Application for 
determination and 
settlement of 
debt. 
Particulars of 
application.
Procedure on 
receipt of 
application, 
Notice calling 
upon the creditor 
to submit 
statement. 
PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 
(VYSK 14, 1938 SAKA) 
resides or holds land; 
50 
(i) the place where he 
| 
(ii) the particulars ofall claims against him together with names 
‘ 
and residences of his creditors; 
(iii) a statement that his total amount of debts does not exceed 
rupees fifteen lacs; 
(iv) astatement whether he has previously filed an application in 
respect of the same debt before the Forum and if so, then the 
outcome thereof; and 
(v) a statement of grounds of application and relief claimed 
alongwith copies of documents relied upon; and 
(b) inthe case of a creditor(s) - 
(i) the place where the debtor resides or holds land; 
(ii) the amount and particulars of his claim against such debtor; 
and 
(iii) a statement of grounds of application and relief claimed 
alongwith copies of documents relied upon. 
11. (J) Onreceipt ofan application under section 9, the forum shall 
pass an order fixing a date and place for hearing the application. 
(2) The Forum may pending its final decision on application, make 
such interlocutory order including the order for keeping the recovery of debt in abeyance, as it may deem necessary in the ‘interest of justice. 
12. (1) On the date fixed under sub-section (1) of section 11, the Forum shall issue notice to the creditor of the debtor to submit a statement of debt owed to such creditor by the debtor, Such statement shall be submitted to the Forum in-writing giving details of every transaction of debit and credit in the account of the debtor within a Period of two weeks alongwith the copies of documents to be relied upon in Support of his claim: ° Provj rovided that the Forum may extend this period up to one month for subm
PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 5| 
(VYSK 14, 1938 SAKA) 
shall be deemed to be duly discharged for all purposes and all occasions against 
such creditor, and every debt owed to two or more redictors jointly, of which 
such statements or statements signed by all such creditors or their recognized 
agents has or have not been so submitted, shall be deemed to be so discharged 
against such creditors as have failed to submit the said statement, but only to 
the extent of their respective shares in the said debt: 
Provided that no such debt shall be deemed to have been discharged 
against any creditor whose name has not been included in the application 
made under section 9. 
(3) tfadebtor ora creditor fails to appear before the Forum without 
sufficient cause after due service, the Forum shall proceed ex-parte to 
determine and settle the debt. 
13. (J) Every creditor submitting in compliance of a notice issued Procedure on 
under sub-section (/) of section 12, a statement of the debts owed to him, submission of 
shall furnish, alongwith the statement, full particulars of all such debts, and Nebtee emis of 
shall at the same time, produce all documents (including entries of books of 
account) on which he relies to support his claims, together with a copy of 
every such document. 
(2) With a view to ascertain the originality and correctness of the 
documents produced under sub-section (J), the Forum shall make thorough 
verification thereof and after ascertaining the same, it shall retain the copies 
of such documents and return the original to the creditor. 
14. (J) Ifacreditor or a debtor, as the case may be, challenges the Power of the 
genuineness or enforceability or the total amount of debt or principal or rate of F sutie ae 
: ; . . . adjudicate. 
interest or amount of interest or date of raising of any debt included in an 
application, the Forum shall adjudicate upon the issue. 
(2) The Forum shall determine in the case of each debt, shown in the 
application made by the debtor or his creditor under section 9 or in the statement 
furnished by the creditor under section 12, other than a debt, declared non- 
genuine or unenforceable, the principal amount originally advanced, the amount 
paid by the debtor towards the principal or interest or both and the amount of 
principal and interest payable as notified under this Act. 
(3) The Forum shall decide every application submitted under section 
9 within a period of three months from the date of application. 
(4) Where the debtor is found to have repaid to the creditor an amount
Powers of the 
Forum and 
Tribunal to 
summon, 
Re-opening of 
transaction. 
XT Y 4, 2016 
UNJAB GOVT. GAZ. (EXTRA), MA 
_ (VYSK 14, 1938 SAKA) 
. 4 
— 
fouble the principal amount, or the debtor on being 
‘ 
dc amount, Which makes the total repaymen 
al, the Forum shall declare the deby ts 
equal to, or excecding, 
sndi ays al apprised of such finding, pays y 
oa I louble the amount of princip ! fo at | squal to de - lane (bah sac . 
hull lischarged and thereupon the provisions of clause (b) tion 3, shal fully discharged é 
apply. - 
5) The Forum shall keeping in view the outstanding amount o Principal (Od Wh ‘ 1 ‘a 
and interest as determined under sub-section (2), and the paying capacity of { fthe amount of debt, settled or determined the debtor, order the repayment o é 
in such installments as it may deem fit. 
(6) Ifthe Forum finds that the provisions of the Punjab Regulation of 
Accounts, Act, 1930, have not been complied with by the creditor, it may, for 
the reasons to be recorded in writing disallow the interest partly or wholly for the period of non-compliance. The creditor shall issue a duly authenticated passbook to the debtor, clearly giving the details of his loan account. 
15. The Forum and the Tribunal may exercise all such powers with referrence to summoning and examining of parties and witnesses and with the 
g anything contained in any other law for the time m has reason to believe- 
(a) that the interest charg 
being in force, if the Foru 
(b) that the transaction 
the Forum shal] exercise all or an ( y of the following powers, namely:- ) re. , we transaction, take an account between the parties re Neve the debtor of all liabilities in respect of any excessive interest: 
Gi) notwith Standing anya ' Breement, pur x revious Saling and to or Purporting to close p 
account in respect of such liabilities, tor to repay an y sum, which it considers to be 
spect thereof > and
PUNJAB GOVT. GAZ. (EXTRA), MAY 4. 2016 53 (VYSK I4, 1938 SAKA) 
a eee = . = 
(ii) set aside either wholly or in part or revise or alter any security given or agreement made in respect of any loan, and if the creditor has parted with the security, order him to indemnify the debtor in such manner and to such extent, as it may deem fair and proper: 
Provided that, in the exercise of these powers, the Forum 
shall not - 
(i) re-open any agreement purporting to close previous 
dealings and to create a new obligation which has been 
entered into by the parties or any persons from whom 
they claim at a date, more than five years from the date 
of the transaction; and 
(ii) do anything which affects any decree of a civil court 
passed before the commencement of this Act. 
Explanation: 
(1) Inthe case ofan application brought ona series of 
transaction, the expression "transaction" means 
for the purpose of clause (i) of the proviso, the 
first of such transactions. 
2) * The interest, shall be deemed to be excessive, 
if it exceeds the rate of interest notified under 
this Act. 
17. If once an application has been disposed of, the Forum shall not Bar to successive entertain subsequent application for the same cause of action between the @pplication. 
same parties, 
18. If any question arises in any proceedings under this Act as to Decision of the Whether a loan, or liability is a debt or not or whether a person is a debtor or Forum to be final. Not, the decision of the Forum shall be final, and shall not be called in question 
in any Civil Court. 
19. Nocivil court shall entertain:- Bar of civil 
suits. (a) any suit, appeal or application for revision - 
() to question the validity of any procedure or the legality 
of any order or award made under this Act ; or 
(i ii) to recover any debt, which is deemed to have been duly 
discharged, under the provisions of this Act ; or
Review, 
Appeal. 
Appearance of 
Party. 
Bar to New suits 
and transfer of 
Pending suits. 
PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 
. < i wn farina — iit for declaration, or any suil or application for MUUNetion any St ‘this Ac ( “ ir ting any proceedings under this Act before the Forum, allec . 
20. (1) Anyperson, who, from the d iscovery of'any new and I™MPortan 
fact or evidence which, after the exercise of a near’ was Not in his 
knowledge or could not be produced by him before or at t re time, when an 
order was made by the Forum, or on account of some mistake or error 
apparent on the face of the record, or for any other surhietent reason, desires 
to obtain a review of such order, he may submit an application to the Forum 
for reviewing such orders. 
(2) On receiving an application under sub-section (/), the Forum may, 
ifno appeal has been filled, by reviewing its order, pass such Orders, as it may deem appropriate: 
Provided that the Forum shall not pass an order which adversely affects any party without giving such party an opportunity of being heard: 
Provided further that no application for review shall be entertained, if presented more than sixty days after the date of passing the order, sought to be reviewed. 
; 
- However, no appeal shall lie against an order passed by the Forum ona review application in which the original order is not modified and the person agerieved by the order of the 
P 4ppeal in the High C from the date of rece 
Forum on a review application may file an Ourt on a question of law within a period of sixty days Ipt of copy Of such Order, 
(2) Any Person i in the High “88rleved by an order of the Tribunal may file an appeal Ourt on a : . date of receipt of Westion of law Within a period of sixty days from the “Opy of the order of the Tribunal
ye 
PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 
(VYSK 14, 1938 SAKA) 
(2) Any suit pending before a Civil Court on such commencement in 
respect of any such debt, shall be transferred by th 
having jurisdiction in the matter, 
55 
at Court to the Forum 
24, The order of the Forum passed under this Act, shall be executed Recovery of sums 
by the civil court having jurisdiction in the area as if it were a decree or an“: 
order of that court. 
25. Notwithstanding anything contained in any other law for the time Overriding effect. 
being in force, the provisions of this Act shall have an overriding effect. 
26. (1) The Government may by notification in the Official Gazette, Power to make 
make rules to provide for all matters for which provision is necessary or "les. 
expedient for the purpose of giving effect to the provisions of this Act. 
(2) Therules made under sub-section (/) shall be subject to the condition 
of previous publication. 
(3) Every rule made under this Act shall be laid, as soon as may be, 
after it is made, before the House of State Legislature, while it is in Session 
for a total period of ten days, which may be comprised in one Session or in 
two successive Sessions, and if before the expiry of the Session in which 
it is so laid or the successive Sessions aforesaid, the House agrees in making 
any modification in the rules or the House agrees that the rule should not 
be made, the rule shall thereafter have effect only in such modified form 
or be of no effect, as the case may be, so however, that any such modification 
or annulment shall be without prejudice to the validity of anything previously 
done or omitted to be done under that rule. 
27. The Government may issue directions to the Forum or the Tribunal Power of the 
Government to for carrying i icular with regard to rying out the purposes of the Act and in particular v gi issue directions. 
speedy settlement of the debt cases before them. 
28. If any difficulty arises before the Forum or the Tribunal, as the Power of the 
Case ma j i i Forum or the Government to Ti y be, in carrying out the purposes of this Act, then the Foru ssivedifficuliles 
ribunal may refer such difficulty to the Government and the order of the 
Government in such matter shall be final: 
Provided that no such order shall be made by the Government after 
the expiry ofa period of three years from the date of commencement of this 
Act.
56 PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 
. (VYSK 14, 1938 SAKA) 
The \é lief of Indebtedness Act, 
Repeal and 29. (/) The Punjab Re 
saving. repealed. 1934 js hereby, 
“) Notwithstanding the re 
(1), anything done or any action t 
have done or taken under the pro 
peal of the Act referred to in sub- 
aken under the said Act, shall be de visions of this Act. 
S€Ction 
emed to 
VIVEK PURI, 
Secretary to Government 0 f Punjab, artment of Legal and Legis Dep 
lative Affairs. 
1005/05-20] 6/Pb. Govt, Press, SAS Nagar

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