LexThe Tamil Nadu Agriculturists Relief Act, 1938
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The Tamil Nadu Agriculturists Relief Act, 1938
Act 4 of 1938
Keyword(s):
Agriculturist, Debt, Rent, Creditor, Mortgagee
Amendments appended: 15 of 1943, 23 of 1948, 5 of 1949, 24 of 1950, 8 of
1973
1938: T.N. Act IV] Agriculturists Relief 56 5
I
I
THE '[TAMIL NADU] AGRICULTURlSrS
RELIEF ACT, 1938.
TABLE OF CONTENTS.
PREAMBLE.
I
SECTIONS.
1. Short title.
2. Extent. ,
3. Definitions.
4. Certain debts and liabilities not to be affected.
5. Special provisioll for undivided Hindu fami-
lies, etc.
6. Heirs of non-ngriculturist members of Hindu
frtmilies to be non-agriculturists.
C~TA~~R I[--SCAI.ING 1)OWN OF D~BTS AND
l:UTLlI< t n.\ 1'1. OF IN TI.RTSI .
7. Dcb~s pny:~blc by :1gricullurists to be scaled
down.
8. Pl.ovicion li,r debts incur~.ed before 1st March
1972.
9-A. Spcci;iI provision in ~.t.spcct of usufructuan
mortgages.
I I
10. Exceptions. 1
11. Provisions as to costs, etc., in certain cases,
- --
Agriculturists Relief [193%: T.N. Act IV
SECTIONS.
12. Rate of interest payable by agriculturists on
old loans.
13. Rate of interest payable by agricult~~rists on
new bans.
13-A. Rate of interest payable by certain persons
on debts.
14. Separation of share of debt in particular cases.
15. Conditional discharge of arrears of rent due
to landholders, etc.
16. Latzciholder to be entitled to recover lanci cess
and costs.
17. Extension of limitation for suits. etc., for rent
in certain cases.
1 7-A. Scaling tlotvn of interest on arrears of rent.
CIIAPTFK lV--PROCFDURE AND MISCFLLANEOUS.
18. Prnvisto~l ns to costs ill certnitl enses.
19. Alneldment of certain decrees.
19-A. Application for the cleterminntion of tile
anlount of debt due.
20. Stay of cxcct~tion proceedings.
A 21. Arljudications in insolvency.
22. Special provision in the case of certain sales
of movable property.
23. Sales of immovable property to be set aside
in certain cases.
L
1
1938 : T.N. Act IV] Agriculturists Relief 567
I'
I I.
SECTIONS. l i
23-A. Power of Court to set aside sales of immo- 1
vablc property in certain cases. I
23-B. Modifications in the application of section
23-A to certain cases.
- 23-c. Power of co~lrt to set aside sales of immo-
I
vable proparty in certain cases. !
24. Conseq~lenr~al provision on setting asido of
sale.
24-A. Power of Court to reject certain claims. ,
25. Alienations by debtor.
25-A. Appcals.
26. District Collecror to fi~r~lish information as
to certain filcts.
27. Executive ;ii~tho~.ities of local bodies to furnish I
illformation as to crrt'~111 facts.
28. Po~vcl I,) make rilles.
lWIL NADU] ACT No. IV OF 1938 '.
[THE '(TAMIL NADU) AGRICULTURISTS RELIEF
ACT, 1938.1
(Received the assent of the Governor-General on tlze 1 1 tlt
Jfarclr 1938 ; $rst published in the Fort St. George
Gazette of the 22nd M&rch 1938.)
An Act to provide for the relief of indebted agricul-
turists in the 3[State of Tamil Nadu].
WREREAS it is expedient to provide for the relief
of indebted agriculturists in the S[State of Tamil
Nadu]; It is hereby enacted as follows:-
CHAPTER I.
Preliminary.
Short title. 1. This Act may be called the '[Tamil NaduJ Agri-
culturists Relief Act, 1938.
Extent. 2. It extends to the whole of the '[State of Tamil
Nad u].
- These words were substituted for the word "Madras" by
the Tamil Nadu Adaptation of Laws Order, 1969, as amended by
the Tam11 Nadu Adaptation of Laws (Second Amendment ) Order,
1964, whlc11 came into force on the 14th January 1969.
2 For Statement of Objects and Reasons, see Fort St. George
Gazerre Extraordinary, dated thc 1st December 1937, Part IV,
page 12.
This Act was extended to the merged State of Pudukkottai by
.iection 3 of, and the First Schedule to, the Tamil Nadu Merged
State (Laws) Act, 1949 (Tamil Nadu Act XXXV of 1949).
TKS ~ct as was in force immediately before the date of the publi-
cation of the Tamil Nadu Agriculturists Relief (Amendment) Act,
1972 uamil Nadu Act 8 of 1973) in the State of Tamil Nadu except in tk transferred territory and as amended by tho latter Act was
extended to the transferred territory by section 25 of that Act.
t ~h& expression was substituted for the expression "Province
Tamil Nadu Adaptation of Laws Order, 1970, to have come Into form on the 14th Jan~ary
4 This expression W
Madrag by the Tar@
aw by the Tam1
ment) Order, 1969.
3. In this Act, unless.there is anything repugnantDeh~tZ.)ns. i
in She subject or context,
I
(i) ' person ' means an individual and includes ,
an undivided Hindu family, a marumakkattayam or
aliyasantana tarwad or tavazbi, but does not include
a body corporate, a charitable or religious institution
or an unincorporated company or association ;
(ii) 'agriculturist' means a person who-
(a) has a saleable interest in any agricultural
or horticultural land in the '[State of Tamil Nadu],
2C* * * *I, which
is assessed by the "State) Government to land revenue
(which shall be deemed to include peshkash and quit-
rent), or which is held free of tax under a grant made,
confirmed or recognized by Government ; or
(b) holds an interest in such land under a
,[Tamil landholder under the '[Titmil Nadu] Estates Land
Nadul Act, 1908, us tenant, ryot or tlndcr-tenure holder ;
Act I of Or
1908.
(c) holds an interest in s~~clt land, recognized
4[Tamil in the Malabas Tcnnncy Act, 1929; 01.
Nadul
Act XIV
of 1930. -- - .-
1 This expression was substituted for the expression "State of
~
Madras" by the Tamil N~du Adaptation of Laws Order, 1969, as
amended by the Tanril Nadu Adaptation of Laws (Second Amend.
merit) Order, 1969, which came into forcc on the 14th January 1969.
a The words "not being land situated within a municipality or
cantonment" were omitted by section 2(1) (i) of the Tamil Natlu
Agriculturists Relief (Amendment) Act, 1972 (Tamil Nadu Act 8
I of 1973).
a This word was substituted for the word "Provincial" by the
Adaptation Order of 1950.
r These words were substituted for the word "Madras" by the
Tamil Nadu Adaptation of Laws Order, 1969, as amended by the
. Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969,
Agn'c~tturi~t~ ~elief [I938 : T.N. Act IV .
(d) holds a lease of such land from any per-
son specified in sub-clause (a), (b) or (c) or is a sub
lessee of such land:
Provided that a person shall not be deemed
to be an 'agriculturist' if he-
(A) '[has in both the financial years] ending
*[31st March 19721 been assessed to income-tax under
the '[Income-tax Act, 1961 (Central Aci 43 of 1961)
"o9der the Income-tax law in force in any foreign
country] '[ .I ;or
(B) '[has in all the four half-years immedia-
tely preceding] the '1.1 st March 19721 been '[assessed
to profession tax on .a half-yearly income of'more than
"one thousand and tnfo hundred rupees)] derived .- ,. ---- -4 --
1 These words were substituted for the words "has in either
of the two financial years " by seclion 2 U) or the Tamil Nadu Agri-
culturists Relief (Amenclmrn~) Act, 1048 (Tiitnil Nadu Act SXlII
of 1948).
2 This expression was subst~tuted for the expression "31st
March 1938" by section 2 (1) (ii) (0) of thc Tamil Nadu Agricul-
e turists Relief (Amendment) Act, 1972 (Tamil Nndu Act 8 of 1973).
This expression was substltutcd for the expression "Indiatl
Income-tax Act, 1922 (Act XI of 1922) or under thefncome-tax laws
of any territory which immeduately bcfo~e the 1st November 1956
was comprised in a Part 8 Slate" by section 2 (1) 61) (b), ibjd.
4 The words "or forelgn Government" were omitted by section
2 of the Tan111 Nadu Agriculturists Relief (Anlendment) Act, 1956
(Tamil Nadu Act M<VIII of 1956). In so far as thc Taniil N:irlu
.,, ~ct 1V of 193s applied 10 the added tcrrlrorles, these words were
omitted by stxtion 4 of, and the Second Schcdulc to. the Tamil
Nadu (Added Territories) Exten~ion of Laws Act, 1962 (Tamil N~du
Act 14 of 1962).
6 These words were substituted for the words "has within the
two years immediately precding" by section 2 (i) of the T~lnil
~adu ~griculturists Relief (Amencttnertt) Act, 1948 (Tamil N.~du
~ct -I of 1948).
s This expression was substituted for the exxpressit>n '"-it October
1937" by section 2 (1) (iii) (a) of the Tamil Nndu Agriculturisrs
endment) Act, 1972 (Tamil Nadu Act 8 of 1973).
words were substituted for the worils "assessed to
profession-tax on a half-yearly income of moro than three hundred
by section 2 {ii) of the Tamil Nadu Agriculturists Relief
(-t) Act, 1948 (Tamil Nadu Act XXm of 1948).
r expression was substituted for thaexpression "six hund-
-9,
by sectton 2 (1) (ii (b) of,the Tam11 Nadu Agriculturists
R elid wndrnent) Act, 1972 (Tarml Nadu Act 8 of 1973).
li ."..- . . I.. .-
[&..*,." ..-- .
I
1938 : ?.N. Act IV] Agriculturists Relief 37 1 :
I
i[Tamil from a profession other than agriculture under the /
Nadu] '[Tamil Nadu] District Municipalities Act, 1920,
ActV or 2[the Madras City Municipal Corporation Act, 1919 1920.
Central (Tamil Nadu Act IV of' 1914), tbz Cantonments Act,
Act I1 of 1924, or any law governing' municipal or local
1924. bodies in Y4(any other State or Union territory in
India) or any foreign State in the continent of lndia]
"or under the Madura~ City Municipal Corporati011
Act, 1971 (~aniil Nadu Act 15 of 1971) or under
the Tan111 Nadu Panchayats Act, 1958 ( Tamil Nadu
Act XXXV of 195~)]; or
(C) "has i? all thc fcur half-years immcdia-
tely prececling] the '[I st March 19721, been assessed - - ----. -
These words were substituted for thc word "bladras" by the
Tamil Nadu Ad:~ptatio~~ of L;~ws Order, 1969, as amended by the
Tamil Nadu Adaptation of Laws (Second A~nendn-isnt) Order,
1969, which i;inle into I'orce on the 14th Jartuary IY~JY.
'She words "l'an~il Nadu" \\.CI.C substitilted icr the word
"Madras" occ urri~ig in Illis citation by the Tamil Nadu Adaptation .
of Laws Orcter. 1909, as amended by the Tamil Nadu Adaptation
of Laws (Sr<olid Anlrndnie~lt) Order, 1969; and this expression
w:~s substitutc(i for tlle expression "tlie Madras Cl:y Murlicip:?l
Act, I919 ('Tamil Nndu Act IV of 1919)" by section 2 (l)(iii) (c) of
111eTam1l N:I~LI Agriculturists Kelief (Amendment) Act: 1972 (Tamil
N:ldu Act S oC 1973).
These words were substituted for the words "any other Pro.
vince in British Indi'i, any Indian Statc or any foreign SIL;!~ inIndia"
by the Adaptiition (An~endmcnt) Order of 1950.
These ~vnrds werc substituted for the words "ac:: other State
i~r i11i1.1" hq >cction4 of, ~IIU the Ti111ci Schedule 10, the Tzrnil Nndu
I<epealing:~nd hnlendi~lg Act, 1957 (Tamil Nadu Act XXV of 1957).
111 so Jar ;IS the 'ran~il Nadu Act IV of 1938 applies 1s !lie adtled
~erritorie+, !i~i.?e words )\elre bubstilutec! tor the word, " any other
State in 111~Li:i" by section 4 of, and thc Second Schedule to, the
Tamil Nadu (Atldetl Territories) Extension of Laws Act, 1962 (Tamil
Nadu Act I4 ot' 1')67-):
1
6 The words '"l'a~nrl Nadu" were substituted for the word
"Mndrns" by thc Tamil N.~ci~r Adaptation of Laws Order, 1969, as
anlended by the Tiunil N;~du Adilptalion of Laws (Second Amend-
ment) Order, 1969; and this expression was substituted for the ex-
pressio~l "or undcr the Tamil Nadu Local Boards Act, 1920 (Tamil
Nudu Act XtV of 1920) in it pnnchnyat which was a union before
the 26th August 1930" by section 2(1) (iii) (d) of the Tamil Nadu
Agricnlturists Relief (Aniendlnent) Act, 1972 (Tamil Nadu Act 8 I 1
of 1973).
These wolds were substituted for the words "has within the
two years immediately preceding" by section (2)(i) of the Tamil
I Nadu Agriculturists Relief (Amendment) Act, i948 (Tamil Nadu
Act XXIII of 1948). /I
1 This expressipn w:ts substituted for the expression " 1st Octo-
ber 1937" by section 2 (1) (iv) (a) of the Tamil Nadu Agriculturists
I
Relief (Amendment) Act, 1972 (Tamil Nadu Act 8 of 1973). 1. *
t *,l '/1
. - -' x, 6
I Agriculturists Relief [ 1938 : T.N. Act IV
! to property or house tax in respect of buildings i or lands other than agricultural lands, under the lpamii
Nadu] District Municipalities Act, 1920 =[the Madras l[Tmil
City Municipal Corporation Act, 1919) (Tamil Nadu ~~~lof
Act IV of 19 19)1, the Cantonments Act, 1924, or 1920.
any law governing municipal or local bodies in "any c,td
other State or Umon territory in India] '[or under the Act n
Madurai City Municipal Corporation Act, 1971 1924.
(Tamil Nadu Act 15 of 1971) or under the Tamil
Nadu Panchayats Act, 1 958 (Tamil Nadu Act XXXV
of 1958) 1, prov~ded that the aggregate annual rental
value of such baildings and lands,, whether let out or
in the occupation of the owner, is not less than
'[Rs. 1,200~ ; or
1 These words nere substituted for the word "Madras" by the
Tamil Nadu Adaptation of Laus Order, 1969, as amended by the
Tamil Nadu Adapt.11 ion of La\\ s (Second Amendment) Order,
1969.
2 The words "Tamil Nadu'l were substituted for the words
"Madras" by the Tamil Nadu Adaptation of Laws Order, 1969, as
amended by the Tamil Nadu Adaptation of Laws (Second
Amendment) Order, 1969; and this expression was substituted for
the expression"thc Madras City hlullicipal Act, 1919 (Tamil Nadu
Act IV of 1919)" by section 2(l)(iv)(b) of the Tamil Nadu Agricul-
turists Rehef (Amendment) Act, 1972 (Tamil Nadu Act 8 of 1973).
The words "any other State in India" were substituted for
the words "any other Province in British India or any Indian State"
by the Adaptatioll (Ac;<~iLmeni) Order of 1950, and these words
were substituted for the wor& "any other State in India" by section
4 of, and the Third Schedule to, tht. Tamil Nndu Rcpc:~!ing and
Amending Act, 1957 (Tanlil Nadu Act.XXV of 1957). In so far as
the Tamil Nadu Ast IV of 1938 npplles to the added territories,
these words were substituted for the words "any other State in India"
by section 4 of, and, the Second Schedule to, theTamil Nadu (Added
Territories) Extension of Laws Act, 1962 (Tamil Nadu Act 14 of
1962).
4 The words "T;imil Nadu" wcrc substituted for the word
by the Tarnil Nadu Adaptation of Laws Order, 1969, as
the T;~mil Nadu Adaptation of Laws (Second Amend-
nlent) &der, 1 G9; and this expression was substituted for the ex-
pression 1~0. uy&r the Tamil N~dtl LOCR~ Boards Act, 1920 (Talnil .
Nadu Act XIV of 1020). in a panchayat which was a union before the 26th August 1930" by section 2 (1) (iv) (c) of the Tamil Nadu .
Agriculturists Relief (Amendment) Act, 1972 (Tamil Nadu Act
8 01 1973).
6 his expression was substituted for the expression "Rs. 600"
by section 2(1Xiv)(d), ibid.
4 .'. U L - --
m*s* L
" .gr
&x 6,
-&, ~+~~&~$-;@5?~~~.T~s -2 *. # ,< :&?*%*
*" 8,. 3 4 3, :-: %;*$; +? %,:&*-.*p $ . *', , *
1998 : T.N. Act IV] ~griculturbti ~&ef 573
*[(D) is a landholder of an estate under
the ZITamil Nadu] Estates Land Act, 1908, or of a fTamil
share or portion thereof, whether separately regis- :,"!Id
tered or not, in respect of which estate, share or 1908.
portion any sum exceeding five hundred rupees is
payable as peshkash, or any sum exceeding one
hundred rupees is payable under one or more of
the following heads, namely, quit-rent, jodi, kattubadi,
poruppu or other due of a like nature, or is a aiTamil jami under the Malabar Tenancy Act, 1929, Nadnl
who is liable as such janmi to pay to the S(State) ~ct XIV
Government any sum exceeding five hundred rupees of 1930.
as land revenue.]
Explanatio~.-The annual rental value of any I
building or land for the purposes of proviso (C) I
shall-
(1) where the assessment is based on the
annual rental value, be deemed to be such value;
(2) where the assessment is based on the
capital value be deemed to be five per cent of the
capital value; and
(3) in any other case, be deemed to be the value
ascertained in the prescribed manner ;
4[(iii) 'debt' means any liability in cash
or kind, whether secured or unsecured, due from
an agriculturist whether payable -under a decree or
1 This proviso was substituted for the original proviso (D) by
section 2 (iii) of the Tamil Nadu Agriculturists Relief (Amend-
ment) Act, 1948 (Tamil Nadu Act XXIII of 1948).
: These words wFe substituted for the word "Madras" by the
Tamil Nadu Adaptat~on of Laws Order, 1969, as amended by the
Tamil Nadu Adaptation of Laws (Second Amendment) Order, I I
1'
ituted for the word "Provincial" by the 11
i
1%
I )
t *
I
'
TenancyAct, 1929 (ramil Nadu Act XN ofI930);'J
'[(iii-a) ' interest ' means any amount or other
thing paid or payable in excess of the principal sum
borrowed or pecuniary obligation incurred, or where
anything has been borrowed in kind, in excess of
what has been so'borrowed, by whatsoever name such
amount or thing may be called and whether the same
is paid or payable entirely in cash or entirely in kind
i ;
or partly in cash and partly in kind and whether the
same is expressly nielztioned or not in the document or
contract, if any ;]
(iv) ' rent ' tneans '[the rent payable by a
,-zlti\.nri1l2 t:t~ant L1!1.1:1* the Tatnil Ni~du C~tltivating
Tennnts (Payment of Fair Rent) Act, 1956 (Tamil
Yadu Acr YXIV of 1956), or under the Tamil Nadu
Public TI.US~S (Regulation of Administration of Agri-
sultural Lands) Act, 1961 (Tamil Nadu Act 57 of
i 961 ) or the] rent as defined by the a[Tamil Nadu]
a[Tamil Estatcs Land Act, 1908 or rent or michavaram as
NadU] defined by thc Malabar Tenancy Act, 1929 Act I of 1908. (-,r quit-r.cn!, jodi, kllttubadi, POTUPPLI 01. the like,
2[Tamil payal~lc lo tl:c landholder of :LI~ estate as delincd by
Nndul ;he "T;:mil VacluJ Estates Land Act, 1908, wllether
" : tc L cl 01' it c/viI or rcvclutc CULI~~ II~IS bccn
t-:S~:lit~c.il thei.clb; or n:)t and il~cl~ldes interest
Nadu] payabli. thereon birt does not include costs
Act 1 of ~~C'LII-I.C'(~ ill respect of the recovery thereof tl~rough
1908.
2 This cxprcssion was insertcd by soctiol~ 2(3)(a) of the Tamil
h'adu Agriculturists Relicf (Amendment) Act, 1972 (Tamil Nadu Act.
8 of 1973).
a Thosa wor4s were substituted for the
Tamil Nadu Adaptation of LawsOrder,
Tamil Nadu Adaptatlon of Laws (second A
'
t; -,. '
" 1988: T.N. Act IV] Aga'cuIhcri~ts Retie/ 575
a civil or revenue court or the share of the land cess
recoverable by the landholder '[under any law for the
time being in force in this State] ; '[ 1
(v) ' creditor ' includes his heirs, legal representa-
- tives and assigns ;
'[(vi) ' mortgagee ' illcIudes his Iieirs, legal
and assigns.]
Certain &[4. Nothing in this Act shall affect debts and debtsand
liabilities of an agriculturist falling under the follow- liabilities
ii~g heads :- ~lot to be
affected.
(a) any revenue, tax or cess payable to the State
Goyernment or any other sum due to them, by way
of loan or otherwise ;
(6) any revenuc, tax or ccss payable to the Central
Government or any otllcr SUJII due to tllcrn, by way of
loall or otherwise ;
(c) ally tax or ccss payablc to any local a~lthority
or any other sum d~c to them, by way of loan or
otherwise ;
(d) any liability ill res) :ct of any sum due to any
co-operative society inclltding a land development
1 Thi, cxllrcsuion' war subsritt~ccil for tltc cuprcssinll " under
\cctioi\ $8 of the 'fiuliil Nrrlfu I.c)c\/ R ~ard.; .Zct, 1920 mnlil Nadu '
Act XIV of 1920)" by scctioll 2 (.I) (b) of the T;lmil Nndu Agricultu-
rists llelicf (Alilendrncl~t) Act. 11)71 (Titmil Nndu Act 8 of 1973), the
words Tn~l~il NLLLLI " h;rvill~ bc:ll e,lrlier substituted for the word
- Madras " by 111" T:unil Natlu Ad;lpt;ttior~ of Laws Older. 19(;'),
alncndcd by tl~c 'T:llnil N;ltltl :\da(~t:itio~l or Lnws (Second Alnend-
lncnt) Order, 1')T.g.
r This scction was substitutcJ for the original section 4 by section
3 of the Tamil Nndu Agriculturists Relief (Amendment) Act, 1972
flamil Nadu Act S of 1973).
bank, registered or deemed to be registered under the
Tamil Nadu Co-operative Societies Act, 1961 (Tamil
Nadu Act 53 of 1961):
Provided that where the liabilities mentioned
in ihis clause arise by reason of an assignment to any
such co-operative society, either such assignment has
taken place before the 1st March 1972 or is an assign-
ment to such society of a loan granted by another such
CO-operative society ;
(e) any liability arising out of breach of tryst ;
df) any liability in respect of maintenance whether
under a decree of court or otherwise ;
(g) any liability in respect of wages or remunera-
tion due as salary or otherwise for services rendered ;
(h) any liability in respect of any sum due to-
(A) any Public Company as defined in the
Companies Act, 1956 (Central Act I of 1956) ;
(B) any b:inkinp company to which the Bank-
ing Regulation Act, 1949 (Central Act X of 1949)
nppl ies ;
(C) the State Bank of India constituted under
the State Bank of India Act, 1955 (Central Act XXIII
of 1955) ;
(D) any subsidiary bank :IS defined it1 clai~sc
(k) of section 2 of the State Rank of Tndia (Subsidiary
Banks) Act, I959 (Central Act 38 of 1959) :
(E) any col*respond ing new bank as defined
in cl:~use (d) of section 2 of thc Banking Con~panies
(Acquisition and Tr:lnrfer of Ul~dertakings) Act, 1970
(Central Act 5 of 1970) ; anti
(F) any company or corporation owncd or
colltrollod by thc Central Govcrtuncnt or iuly State
Government .I
5. Where ,211 undivided Hinclu family other than a
marumakkattayam or aliyasantann tarwad or tavazhi
is assessel to.t lie taxes specified in proviso9 (A), (8) and
(0 to section 3 (ii), or falls within the category of
\
1938 : T.N. Act Wj Agriculturists Relief 577
persons specified in proviso (D) to the same section,
no person who was a member of the family on the l[lst
March 19721 shall be deemed to be an agriculturist*
for the purposes of this Act except section 13.
6. Where in an undivided Hindu family other than a zftfz I
marumakkattayam or aliyasantana tarwad or tavazl~i ayiculturist
which is an " agriculturist " within the meaning of mcm~xtr
secii~n 3 (ii), any member of the family is not an ;~~~i;~~;o be
agriculturist, then, notwithstanding anything contained non-algicult,.
in section 3 (ti), '[none of his heirs] shall be deemed twists.
be an agric~ilturist for the purposes of sections 7 to 12
and 19 to 27 of this Act. ,
CHAPTER IT.
Scctlirlg tk~~vrr of' Debts n~zd fictrtre Rate of
Ilrter.c'.\ t. I
7. Notwi:hstnnditlg :illy law, custom, contract cr Debts payable by decl-c-e of court to rllc contrary, all debts payable by an a~al,
;lp~.iii\It~~~i~l '(011 tile Is! M:mh 19721, shnll be scaled turists to be
tlo! 111 in :~cc*ci~ d;~r~c-i. ,441 11 t Iic psovisions of this Chapter. scaled
I
i
No slim ill c;\ccs, ol'tl?c llmount as waled down shall 'I
bc ~~c~vct.;~b!: '‘rani Iiim p from any land or interest
ill I:llltl bt:]on!:rrig to Ilitll ; 110r .\hall his property be
liab:< to bc :l(i'~~ilc~l atxi >:~lcI 01 proceeded against in
any m;lnnc.r. in ihc t:xecu[ion of any decree against him
in so fa,. as sctcli dccsce is for an amount in excess of
thc st1117 ;is ,cnlec! ciowl? llllt!cr- this f hapter.
I
. -- - ---a - _. -. __ --
I Thi.+ e?cprossiol~ wa\ sub\titutcd for the expression " 1st October
1907 * by scction40C thc '1.,111111 N~d~ Agric~llturist~ Relief (Amend-
,p,~\) Act, 1972 (Tamil Nadu Act 8 of 1973).
p ~hbwod substituted lor the wards 'I sins and descendants '*
by section 5(i), i6irl.
~h~~~ wordsweresub~tit~ted for the words "none of hissons and
descendants ill the tnalc line " by section 5 (ii), ibid
' 4 This axprasion wa:,substitu!ed for the expression " at the corn-
mdncenlent of this Act by sectton 6, ibid *<
125-14---37
Provision
for debts
incurred
kfm '(1st
March 19721.
1
\
378 &ricu~tut&t8 Re&f [I938 : T
8. Debts incurred before the '[lst March 19721,
shall be scaled down in the manner mentioned here-
under, namely :-
"(1) j
(1) Where an agricillturist has paid to any creditor twice the amount of the pqincipal whether
by way of principal or interest or both, such debt
including the principal, shall be deemed to be wholly
discharged.
(3) Where the sums rcpaid by way of principal
or interest or both fall short of twice the amount of
the principal, such amoirnt only as would make up
this shortage, or the principal amount or such portion
of the principal amount as is outstanding. whichever is
smaller, shall be repayable.
(4) Subject to the provisions of sectilms 22 to
95, nothing contained in sub-sections "*I, (2) and
(3) shall be deemed to require the creditor to refund
any sum which has been paid to h~m, or to illcrease the
liability ot' a debtor to pay any s~~m in excess of the
amount wh~ch would have been paya blc by him if this
Act had not been passed.
'[E.up/unrrtio?i /.-In determining the amount re-
payable by :i ciebtor under this section. every paymetit
,fiLtJe by hi111 shall be crctf~tcd towards the principal.
G(notwithstnndlnp that he has expressly stated) in
writing that .;\tch paymerlt \ha11 be in reduction of
i~~tercsr .]
- ..- ----- -- - -
1 This expression \*as subztituted Ibr the expression .' 1st October
1932" bysect~on 7(1)ot theTamil Nndu Agricultu~tsts Relief(Amend-
mcnt) Act, 1972 Vamll Nadu Act 8 of 1973).
* ~hts clarise \\.is om~tted by sectron 7 (it), ;hid
a ~hc expression '' (I)" was olnitteli by section 7 (ill), ibid
r he original Explanntlorl was numbered a\ Explanation III and
Explanation\ 1 and 11 were inserted by hect10114 (I) of the Tamil Nadu
Agriculturists Relief (Amendnlent) Act, 1948 (Tamil Nadu Act
XXIZI of 1948).
a This txplessio~~ was substituted for the expre4sion ''unless hs ha
apressly statedw by section7 (iv) of tho Taoul Ndu A$riculMstr
~~lief(&nendment) Act, 1972 (Tamil Nddu Act 8 of 1973).
#
Explanation 11.-Where the principal was borrowed
in cash with an agreenient to repay it in kind, the i
debtor shall, notwithstanding such agreement, be '\
entitled to repay the debt in cash, after deducting the
value of all payments made by him in kind, at the
rate, if any, stipulated in such agreement, or if there is
no such stipulation, at the market rate prevailing at
the time of each payment.]
'[Explanation 111.-Where a debt has been renewed
or included in a fresh document executed 2(before, on
or after the 1 st March 1972), '(whether by the same
debtor or by his heirs, legal representatives or assigns
or by any other person acting on his behalf or in his
interest and whether in favour of the same creditor or
of any other person acting on his behalf or in his
- interest), the principal originally advanced together
with such sums, if any, as have been subsequently
advanced as principal shall alone be treated as the
principal sum repayable under this section.]
4[Explan~tion IV.-Where a debt has been split
up, whether 2(before, on or after the 1st March 1972),
among the heirs, legal representatives or assigns of a
debtor or of a crec'itor and fresh documents have
been executed in respect of the different portions of
such debt, the provisions of this section shall con-
tinue to apply in respect of each of the different
portions.]
-
"9. I
1 For the original Explanation numbered as Explanation III,
a new Explanation was substituted by section 4(ii) of the Tamil Nadu
Agriculturists Relief (Amendment) Act, 1948 (Tamil Nadu Act XXIIZ
of 1948).
2 This expression was substituted for the expression "before or
after the commancement of this Act "by section 7 (v) of the Tamil
Nadu Agriculturists Relief (Am: ~drn:~~t) Act, 1972 (Tamil Nadu Act
8 of 1973).
* Thesa words weresubstituted for the words '' whether by the same
or a different debtor and whether in favour of the same or a different
creditorv by section 2 (a) of the Tamil Nadu Agriculturists Relief
(Amendment) Act, 1950 (Tamil Nddu Act XXIV of 1950).
/*I
4 This Explanation was added by section 2 (b), ibid.
.. 6 T* section was omitted b section 8 of the Tamil Nadu Agri-
$.; .$,n*orntr ReSiI (~mendmentf Act, 1972 (Tamil Nadu Act 8 of
.>*$,. 7t % 39.1
k 125;i&37-* ;w:,-@* ," ha.
&\, $"!* -. '. b &$$&$: ",
2 < >*,
19-A. (1) This section applies to all mortgages
executed at any time before the 2[lst March 19721,
mpact@f and by virtue of which the mortgagee is in possession
rnm. of the property mortgaged to him or any portion
(a) where no rate of werest is stipulated for
as due to the mortgagee, or
(b) where a rate of interest is stipulated for *
as due to the mortgagee in respect of the principal
amount secured by the mortgage or any portion thereof,
in addition to usufruct from the property, or in res-
p:ct of any other sum payable to t he mortgagee by t he
mortgagor in his capacity as such.
Bxplanation.--A mortgagee shall be deemed to*
be in passession of the property mortgaged to him or
any portion thereof, notwithstanding that he had leased
it to the nlortgagor or any other person.
(2) The mortgagor shall be entitled to redeem
the whole of tile property mortgaged, notwithstaudin,g
that the time, if any, fixed in the mortgage deed for -
redeeming the mortgage has not arrived.
(3) Where the morigagee has been in possession
of the whole of the property mortg:ig.:tl to him for an
agg,egate period of less than lhirty ycnrs, the mot tga-
gor shall not be entjtlcd to redeem the mortgage, unless
he psys to the mortgagee-
(i) the difference between the y rincipal amount
secured by the mortgage and an amount bearing to the \
principal amount the same proportion asthe period
during which the mortgagee has been in possession
bears to thirty years ;
---.
.s ms expression was substituted for tho expression '& 30th Sap-
tmbor 1947" by section 9 (ii) of the Tamil Nadu Agriculturists Relief (~menhnt) Act, 1972 (romil Nadu Act 8 of 1973).
1 1938 : T.N. Act IV] Agrinrlluriata Relipf 581
(ii) where any interest on the principal amount
1 secured by the mortgage or any portion thereof has
1 been stipulated for, in addition to the usufruct from
the property, the arrears of such interest as scaled
down under section 8 '[*I read with section 12, 09 under section 13, as the case may be ; and
(iii) all other sums payable to the mortgagee
by the mortgagor in his capacity as such, together
with the interest, if any, due thereon.
(4) Where the mortgagee has been in possession
of only a portion of the property mortgaged to him
for an aggregate period of less than thirty years, the
mortgagor shall not be entitled to redceln the mortgage,
unless he pays io the morigagce-
(i) the ciiffcrence between the portion of the
principal an~ount sccul-cd by thc mortgage which is
;ittribut;~blc: to llw portion of the property in thc
possession of the nlo~ t grtgec and an rtxnount bearing to
that portion of the princiy:il :lmount the same propor-
tion as the pcriod durin~ which the mortgagee has
been in p~sscssion bc:lss to thirty ycars;
(ii) wherc :my interest has bectl blipslated for,
i 11 ;\tldition to the u\ufi.uct Fi.0111 the propcrty, the asrcai.s
of ilzterest on tllc p~rtion of the princip:!l ;umount rc-
ft):-~-cC1 t~) ~n cl:lu\c (I), such :~rrc.t~.i being scaled do~vn
under scction S 'I*] rcad with scclion 12 or undcr
sectjcxn 13, :IS t11c c:!~ III:~)' be :
(ill) the h:lla~lcc (>I' the cl~bl ;IS scalcd dow~l
uncler scction 8 '[*J read with sccrion 12, or under
section 13, as thc cn\c may be ; and
(iv) :~il othcr ci~i~~s pny:thlc to the mortgagee
by the morlg:;gor in his cnpnclty :IS such, togethcr
with the inlcrcst, if :my, due tl~c~.cotl.
(5) (a) Where thc iilorlgagee has been in posses-
sion of. the whole of the propcrty mo~.lgaged to him
for an aggregrtte perioti. of thirty )/cars or morc, then,
. . - - - ---- -----
1 The expression La or 9 *' was omitted by section 9 (i) of the Tamil
Nadu Agricultu~.i~ts Relief (Amendment) Act, 1972 vatnil Nadu
Act 8 of 1973).
.+Grr ,:. " 2m% :?
?.?
'*@" ->+ I
582 Agriculturists Relief , [I938 : T.N. Act IV
notwithstanding anything contained in sections
8, I[*], 12 and 13, the mortgage debt shall be deemed
to have been wholly discharged with effect from the
expiry of theeriod of thirty years or where such
period expired before the 2[publication of the Tamil 6
Nadu Agriculturists Relief (Amendment) Act, 1972
in the Tantil Nadr Government Gazette with effect from
the publication of that Act]-
(i) if no interest has been stipulated for
on the principal amount secured by the mortgage or
any portion thereof, in addition to the usufruct from
the property ;
. ' (ii) where such interest ha? been stipulated for, if no arrznl s of interest are due from the mortgagor;
and
(iii) if no other sums or interest thereon are
due to the mortgagee by the mortgagor in his capacity .
as such. 1
(b) Where the mortgagee has been in possession - I t
of the whole of the pt-operty m<)~-tg~gzd to him for i
an aggrcgltc pcriod of thir~y years or more, thcn, in & case4 not gabel ncd bv claucc ((I), tl~c mortgagor sl~all i
not be entitlcti to redccln the n101.15,152 unlc\s hc l>ays
to the nlorig,igec--
(r) the arl.c.ir\ or^ ~n~ercst htipulatcd for in
aclcl tion to t hc uiufrilc~ froin the pr-~)per~y, as ccaled
down under wction S "[ 1 rend \\ith section 12, or .
I
under scct io tl 1 3, as [he c~\c may bc : :I nil
P . - --_ . __ --
1 The fig~trc " 0 * wa, otnittcd bv .;ectio~i 9 (i) of the Tanlil Nadu
rtculturirts Relief (Al~londtncnt) Act, 1972 (Tatnil Nnct~t Act 8
21 b71).
2 Tht\ c.;prc.\4on was \ub\l~tutcd rot the c\prss\totl ' colnmeclce-
Inerlc t)r tlw 'l'alnil N~du ASI icirlt:~i.i\ts Kolief (A~nendment) Act,
1943 (Tdn~il N,I~ Act XXtU of 1948). \v~ihelt'cct Ctnlil the commence-
IIIZ~~ of that AL*' by swtioll 0 (lii) of 111: 'ratnil Nadu Agri-
culturist\ Relief (An~endtll:nt) Act, 1972 (T,unil N'tdu Act 8 of
1973), the worth " rdnlil N.IJLI" Itnvcng b:cn oorlier substituted
for the wort! '. h.I rdra\ " by tho T 1n11l N tdu Adbrptation of Laws
Order, 1969, A$ nm:ld.:d by 1111: I'nmil Nadu Adaptatioli of Laws ,
(Ssond Anmndment) Oixter, 1969.
aThe evprevsioll " or 9 " was onlitted by stxtion 9(i) of the Tarllil
Nadu Agriculturists Relief (Amendment) Act. 1972 (Tamil Nadu
Act 8 of 1973).
\
- -
(ii) all other sums due to the mortgagee by t/ 8 the mortgagor in his capacity as such and referred
to in sub-clatlse (hi) of clause (a) together with any 1
I interest due thereon. E
(6) Where the mortgagee has been in possession
of only a portion of the property mortgaged to him
for an aggregate period of thirty years or more, the
mortgagor shall not be entitled to redeem the mort-
gage unless he pays to the mortgagee
(i) where, in addition to the usufruct from the
property, any interest has been stipulated for, the arrears
of interest on that portion of the principal amount
secured by the mortgage which is attributable to the
portion of the property in the possession of the mort-
@gee, such arrears being scaled down under
section 8 ] read with section 12, or under section 13,
as the case may be ;
(ii) the balance of the debt not attributable
,to such portion of the property as scaled down under
section 8 '1' ] read with section 12, or under section 13,
as the case may be ; ~tnd
(iii) all other sums payable to the mortgagee
by thc mortgagor in his capacity as such, together
with the interest, if any, due thereon.
(7) For the purposes of this section, the portion
i +of the princip'll amount secured by the mortgage which
:is attr~butable to the portion of the property in the
possession of the mortgagee shall be determined in
rhe manner prescribed by rules made under this Act.
1 (8) The mortgagor shall not be entitled to redeem
a n1ortg:lgz under sub-section (2) or obtain possession
of the inert gaged property by virtue of sub-section
(5) (a), unless he pays to the mortgagee the-cost of
the iniprovements, if any, effected by him to the morb ,
gaged property.
Nadu Act a pf 1973).
584 Agridturhts Relief [1938.: T.N. Act IV
(9) (a) (i) Except in cases falling under sub-
section (5) (a). where the mortgaged property or, as the
case may be, the portion thereof, in the possession of
the mortgagee has been leased back to the mortgagor
by the mortgagee, the sent due to the mortgagee
under the lease (after deducting from such rent any
revenue, tax or cess paid or payable by the mortgagee
in respect of the property) shall be deemed to be the
interest on the mortgage debt or the portion thereof
attributable to the porrion of the property aforesaid
and the provisions of section 8 '[ J read with section
12, or section 13, as the case may be, shall apply to
the entire debt,
(ii) Nothing contained in sub-section (3)
or sub-section (4) shall apply to any debt falling under
sub-clause (i).
(b) In L'.~\L'\ f;ll!111g ~111dcr ~ub-~ecli~ll (5) (N),
where the property has bee11 le'iaed back to the mort-
gagor hy the In,)rtgagee. no:l~ing contained in that
sub-sect~on shall i~fl'ea the sight of the morlgngec lo
reco\ er any renth d~li to hi~u under thu lease fcr any
pcl.,ud bcfol e i11c d'~!? or1 \\ 11 ci~ t tie mostgapc debt is
dco~ncd to havc I?ct.n \.$holly tl.schurgcd by virtue of
I hat 11 13-scc:ion. il' \.t~c.'-! rcnr ILILC no1 ~CCOIIIC barred
by 11mit:ttion un~izr '\ny la\\ 1.~11. the timc tjcing in
fo see.
?L( 10, No~ts' 111\~.ind:ng :!nyl h'ng cont:tined in
lhls sccl.on,-
(0) Wi1~1.c. clus~ng 111~ 1>ci.:od nf~er the 30th
Janu<~!) 1948 itl~ci l:ifOtl: thv 1~~1 h'f:'..~fl 1973. the mort-
gagct. 0;. L~~~! 01' \ ~ucct.sso~~~-~ n-i nlcrc51 11as trans-
k'cc~.cti c,thi',. \vl~olly ur in p !I.[ lllc morlg8gcc's right
i n ;llc psopcr~~ ~)O~I'IJI'L/'P and hs v:tluable consideration,
tlleli. tl~e piov.s~ons of c,ub-scc~ions ( I) to (9) shall
I --
I Tl~a cupra\sio~~ "trr 9 " was ~mil tcd by section 9 (i) of the Tamil .
Nadu Agiizulturl~ls Iizl~or (Atn:nttma~rt) Act, 1972 (Tamil Nadu
Act X of 1073).
'rhi, ,ub.sxtioi~ \\~.rs bubstituted for thc original sub-section by
sect ion 9 (IV), ibid
1938 : TN. Act, IV] Agriculturists Relief 585
apply to such mortgage and for purposes of sub-sec- '
tions (3) to (9) the period during which the last trans-
feree was in possession of the property shall alone
be taken into account :
Provided that the transferee of a mortgage
shall not be entitled to recover in respect of such mart.
gage, anything more than the value oi' the considera-
tion for the transfer ; but nothing therein contained
shall, in cases where the property or por~ion thercof
has been leased back to the mortgagor, affect the right
of the transferee to ,recover the rents, if any, due
under the lease, if such rents have not become barred
by limitation under any law for the time being in
force.
(b) Notwithstallding anything containecl in
clause (a), where the mortgagee's interest In the pro-
perty subject to the n101.tgnge or any part of such inre-
rest belonged to, or devolved on, two or more per-
sons gnd during the period aforesaid, a partition has
taken place among such persons, then nothing contain-
ed in this section, exccpt sub-sections (1) and (2) shall
apply to the whole or such part of the ~nlercst, as thc
case Inay be.]
(I I) Whcrc the equity of redemption in the
property subject to the morlgage belongcd to, or
devolved on, two or irore persons and any one of them
or any person claiming under any one of them has,
during thc period referred to in '[clause (a) of sub
section (lo)], redeemed the entire mortgag:, nothing
contained in this section shall affcct the rlghts or the
reliefs to which the person redeeming the mortgage
might be entitled to under any other law for the time
being in force as against the other persons aforesaid.
- ----... __
1 This expression was substituted for the expression s6 sub-section
,clause(ii)(a) " by section 9 (v) of the Tamil Nadu .Agriculturists
ef (Amendment) Act, 1972 (Tarn11 Nadu Act 8 of 1973). \
586 Agrinrl&iata BeIipf [I938 : T.N. Act IV
F bec~fi~a9.
E 10. (1) The provisions of '[section 81 shall not
I apply to any psrson who, though an -agriculturist as
baed in section 3(ii), did not on the 2[lst March .
19727, hold an interest in, or a lease or sub-lease of,
any land as specified in that section.
(2) Nothing contained in '[section 83 shall
affect-
'[ti) any mortgage of the description referred
to in sub-section (1) of section 9-A, except to the
extent provided for in that section ;]
(ii) any liability for which a charge is provided
under section 55, clause 4, sub-clause (h) of the
Transfer of Property Act ; 4[ ]
Provision '
as to casts, 11. Where a debt plyable by an agriculturist
ctc., in includes any sum decreed as costs by any Court, or ccrtain
CBStS. sums lawfully expended by a mortgagee or other
p:rson in order to preserve the property mortgaged,
such sum or sums shall be recoverable in addition to
1 the sum rec~verable under the provisions of6rscction
- . -- .
1 This expression was wbstituted for the expression "wtions 8
und 9 " by sections 10 (i) (u) inrf 10 (ii) (a) of the Tatnil Wadu
Agriculturists Relief (~mendmcnt) Act, 1972 (Tamil Nadu Act 8
I
of 1973). I
* This expreuion was substituted for the expression " 1st October
1937 " by secrio~l 10 (i) (b) , ibiil.
* This clause was substituted by section 5 of the Tamil Nadu Agri-
~.ulturists Relief (Aqendment) Act, 1950 (Tamil Nadu Act XMV
ol 1950) for clause (I) as amended by section 7 of the Tamil Nadu
&riculturists Reliof (Amendment) Act, 1948 (Tamil Nadu Act XXIII
of 1948).
4 word u or " was omitted by section 10 (ii) (b) of the Tamil
Nadu Agnadturists Relief (Amendment) Act, 1972 (Tamil Nadu
Act 8 0f1973).
a Thisclausa was omitted by section 10 (ii) (c), ibfd.
tuted for the expression " sections 8
1938 : T.N. Act IV] Agriculturists Relief 587 I
Rate of / 12. All debts which have been scaled down under i,tmt
the provisions of this Act shall, so far as any sum payableby
remains plyable thereunder, carry from the date up;uTsyon,
to which they have been scaled down interest on the oldloans.
principal amount due on that date at the rate previously
applicable under law, custom, contract '[or otherwise
or at the rate of nine per cent per annum simple
interest, whichever is IessJ. '
13. 1n any proceeding for recovery of a debt, the of court shall scale, down 3[all interest whether paid or interest
payable] on any debt incurred by an agriculturist payable by
'[on or after the 1st March 19721, so as not to exceed a ;$;;:u-
sum calculated at '[nine per cent per annum), new loans
simple interest, '[ 1:
Providcd that the '[State] Government may,
by notification in the Official Gazette, alter and fix
ally other rate of interest from time to time.
_ -. _ _I*C_- __ _-__ _ _ _
1 This expression was substituted fol the expression "or otherwise"
by ~ect~on 12 (i) of the Tamil Nndu Agriculturists Relief (Amend-
ment) Act, 1972 (Tamil Nadu Act 8 of 1973).
* Tile wolds " that is to say, one pie per rupee per mensem sirnnlc
~lltcrest, or one ,lnll:l p-1 fUpX p:, .... lum ;ilnple interer! " occurrln:,
,, the provl5o weraomitted by ?stion2 of, and the Schedule to, thc
T.inlil Nadu Coiaclgc (Alterdtlon of Reference,) Act, 1960 (Tamil
~,~~lu Act 9 of 1960) : the pro\i\o it\e!! was omitted by section
12 (i~) tllt: Tiimil N'iilu Agrlsulturisi~ Relief (Amendment) Act,
1972 (Tam11 Nadu Act 8 of 1973).
a his expreoio~~ wab ruh~t~tutcd P)r ($exprosion ..all interest
dLLe" by section 13 (i) (11) of t!le Tamil Nadu Agrizulturirts Relief
(~~~~~~l~~lent) Act, 1972 (T.~nul Naci 11 Act 8 of 1973).
$This clcpres>io~l wau ~ub,tit~tcd fo! the expression after (hc
cc,l,,lllenccnwnt of this Act " bv sect ton 13 (i) (b) , ibid
r eupr6ssion WAS wbbtttuced fob tile expres,lon " 6t per cent
ppr annum " by scction 13 (1) (c) , ibid.
~11~ word, "thaExcerpt shown. Open the full act in Lexace.