LexThe Tamil Nadu Indebted Agriculturists (Repayment of Debts) Act, 1955
Tamil Nadu · state statute
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The Tamil Nadu Indebted Agriculturists (Repayment of Debts) Act, 1955
Act 1 of 1955
Keyword(s):
Agriculturist, Debt
1ndL.btt.d Agriculturists [1955: T.N. Act I
346
(Rcpilymtnt of Debts) *
, l[TAM L XADU] ACT No. 1 OF 19552.
(Receivedthe assent of the Presiderzt on the 27th February
1955; first pzrblished in the Forl St. George Gazette
Extraorninary on the 1st March 1955.)
I
An Act to give reiief to indebted agriculturists ia the 3[State
of Tamil Nadu].
WHEREAS it is txpediont to enable the indebted agricul-
turists to repay their debts in easy instaimants ;
BE it enacted in the Sixth Year of the Republic of India
as follows :-
Shor. title, 1. (1) This Act may be ;a?!ed tlw l[Tamil Nadu],
Indebted Agricu1t11risf.s (Repaymotit of '3chts) Act, 1955. commenccme:~i.
(2). It extend.; t ta+ the whola of the 3fState of Tami i
Nadu].
4[(3) Tt shall come into force at (;nc:,]
I Deflnii ;om. 2. In {his Act, unles,; the context otherwise ;.equi~es-
(a) ' ag-I icirltureist ' n ,,ersc\~i wlxo I an
interest other than intetest as a simple mortgagee in any
agricultural or 1~or:icultural land not being a land appur-
tenant to a resid2ntial building but shall not include.-
(i) any getson liable io pay land revenue (which
shall be deemed to include peshkarh and quit-rent) excoed-
ing one hundrec: and 5fty rupees pzr l.lmufn in any year
after 1952 53 :
1 Tl~esz rx7zrils ncrc ~t~l?~tit titeci for the wort1 ",LfadrasW by
the Tamil N'idu Ad..txut~on ai Laws Order. 1969, as amendecf
by the Tamil Nadu Ad;:Ptation of Laws (S;cr id Amendment)
Order, 1969.
2 For Stayernen7 of Objects md R:~.dii~, see Ft?r# St. George
Gazette Extraunlil a:y d i: cd the 9~h February 1955, Parr ~V-A,
pages 64-65.
3 This expressio 3 ~3~; s~sbs!iluted ror L11e expr2ssion "State of Madrasc6 by tho Tamil Nadu 4dapt::tioil of Laws Order, 1965,
2s amended by the '1 N;!du Ad'lpist ion of Laws (Secand Amendmsnt) Order, 19*&!).
4 This $lib-sect io~i was substituted fall the origins sub-
SC~. i0'1 (3) by ~ecl ion 3 &, and the Second Schedltlp to, the Tz-mi]
Nadu Repe:.line slid Amending Acf, 1955 (l'arni j Nndu ~ct xyxv1 0: ' 0.) 5).
1955: T8N. Act I] Indebted Agn' cult mists 347 .
(Repayment of Debts)
(ii) any person assessed to profession tax on income
derived from a profession other than agriculture under any
law governing municipal or local bodies in India on a half-
yearly income of more than nine hundred rupees in any
half-year after. 1952-53. &,
(iii) my person assessed in any half-year after 1952-
53 to property or house tax on an. annual rental value of
'[not less than] rupees six hundred in raspect of buildings
(other than a building in which he lives) or lands other than
agr(icultura1 lands under any law governing municipal or
' local bodies in India ;
(iv) auy persoh aoa~,~d to sales tax on a total
turnover of .not less than twenty thousand rupees in any
year aher 1952-53 under' the Maclras General Sales Tax
Act, 1939 (Madrac; Act IX of 1939), or 2[under the law of
any other part of India relating to sales tax ] ;
(v) any person assessed to income-tax uilder the'
Indian Income-tax Act, 1922 (Central Act XI of 1922), in
any year after 1950-51 ;
A. %
(vi) a firm registered under the Indian Partnership -
Act, 1932 (Central Act IX of 1932), or a company as defined
.in *the Indian Companies Act, 1913 (Central Act VII of
19 131, or a' corporation formed ili pursuance of an Act of
Parliament: of the United Kingdom or of any special Indian" i
law ;,
1 1
':r :.
i , 2% <::
i . ;
, 3 .
Explanation I.--Where a joint Hindu family or. tqwad, . . c ,,,+ a ../
favazhi, 'kutumba or kavaru,,is an agriculturist, every coi . .. +
parcbn-er or member of the tarwad, tavazhi, kutumba or -
* a
,
kavaru, as the case may be,'shall bt; deemed to be an a&- ,. .
culturist provided that he dces, not fall under any of the .
I.
categories specified in sub-clauses (i) to (v). ,I , .. . , + '.
$2
~blanation IL-The provisions of this Act shall not ,, .. . ,&G
apply to any person who though an agrl~ultu~ist was not kn *a : - .I*
- ~, %%
agriculturist on the 1st October 1953 ; . . . ,. 5
-
hese wards were inserted byasec!ian 3 OF, and the second
schedule to, the Tn.mil N~du Repenlii~g and Amending Act, 1955
(Tannil Nadu Act X%:XVI af 1955).
These mrds were subslit uted for the wards "under the law
of any other Statate relating to Sales 'Tax " by 5ection 4 of, and the
Third Schedule to, the Tam'l Nadw Repealing and Amending'Act,
$957 (Tamil Nadu Act $XV of 1957).
* See now the ~onipaniss A~ti 1956 (Central Act 1 of 1956).
I
348 I/tdebted Agn'dturists [135S: TON. Act I
(Repqment of Debts)
(b) ' debt ' means .any liability in cash or kind.
whether secured or unsecured, due from an agriculturist
on the 1 st October 1953 whether payable under a corktract
or decree or ordor of a Court, civil or revenue, or otherwise,
but shall not include- 9
(i) 'any sum paynble to the Stntc or the Centla!
Government or to any local autl-ro~ity ;
(ii) any sum p:?yable to any co-operative society
including land. ~nortgngc bank, ~*egisfcrt=d 01- dcc~ncd to bc
registo~od LI ndcr t hc ': Ma tl r-as C'o-opt l-ativ!: Socictics Act,
1932 (Madras Act VI of 1932) wovidecl that the right of
the society to recover the s:lm did not RT~S~~J. reason of an
assignment made subsequai~t tb ;a; 3ct?Let 1953 ;
(iji) any liability arising out of breach of trust ;
(iv) any li,$bility in respect of rfiailzte118nco ;
(v) any liability in iespect of wngts or rernunero -
ti~n, due as salary or otherwise Ihr se~~viccs r~ildsred ; or
(vi) any liabij.icy incurred or arising under any
Chit Fund Schen~c.
Exp~u~ation 1.-Where a debt has been renewed or
included in a fresh document executed after the 1 st October
1953 whether by the san~e debtor or by his heirs, legal
representatives or axsiens or by any other person acting
on his behalf or in hi5 4:ltcrest or as cr result of :. partition,
in favour of tho Sam6 creditor or l~is heirs, kgal repmen-
tatives or assigns or any other person acting on his behalf
or in his interest or as a io~ult of s partition, the amount
outstanding on the 1.1 October 1953 anc! Included in the
document executed actel the 1st Octnbc,r 1953 shall alone
be treated as the debt f~r the purposes of this Act.
E:;-!anatiorr 11.--Wilere a debt has been split up aftel
the 1st 0ctob:r 1953 anlong the hcirc, legal representa-
tives or assigns of a debtor or a cleditor or as a result of
a partition and fre.ih d~xumellts im~e been exccuted in
respect of different po~t:()i~\ oTthe debt, cacli of ihc differenf
portions shall he n {ie" ii;.,r tlie purposes of this Act.
-qee now the 'l'smil NL'do C',~-op~,r.~t iic Sucic!ic.; t, l Oh 1
(Tam11 Nadu tic1 5.3 01 I xi: .)
I
1955: T.N. Act I] ~ndebt ed ~~ricu2 turists -
'(Repayment$ of Debts) . , .. , I
P . .
- 3. (1) NO suit for recovery of a debt shall be instituted, Bar pf suits ant'
- . . and no .application for execution of a decree in respect of a a~pbation*
debt shall be made, againsf any agriculturist in any civil or
revenue Court before the expiry of four months from the .
.commencement of this Act.
Explanatio~z I.-Where a debt is payable by an agri-
culturist jointly or jointly'and severally with a iion-agricul-
turist, no suit or application of the nature mentidnrd in this
sub-section shall be instituted or made either against the
~ non-agriculturist . or against the agriculturist before the
expiry of the period mentioned in this sub-section.
Explanation 11.--For the purposes ol' this Act, a .suit in
which a decree in respect of a debt is prayed for shall bk
deemed to be a suit for the recoveEy of a debt notwithstand-
ing that other ieliefs are prayed for in such suit and a decree,
shal! be deemed to be a decree in respect of a debt notwith-
standing that o~&r reliefs are granted in such decree :
Provided that a suit for possession of land shall not be .
deemed to be a suit for recovery of a debt by reason meiely
of mesne profits being also prayed for in such suit :
Psovided further thai nothing contained in this s~ction
shall apply to any portion of a decre. other than that I (
. relating to a debt.
(2) Where a cn ditoi files a suit for recovely of a debt
during the period specified in sub-sectjon (1) or after ihc
2
a#jicultu~ist has paid or deposited into Co-~rt the sums and
instalnients specified in sub-section (1) of seclion 4 and
duling the p~liod when he is so entitled to pay, the Court
\
shall in decreeing the suit direct the plantiff to bear his
own costs and pay the costs of the defeA1dani who is an
agriculturist : '
Provided that nothing contained in this sub-section
shall be a bar to the Court passing any order as to costs as
6
between the plalintiff and other defendants who are not
agriculturist^.
, - 4. (1) Notwi hhstanding any jaw, custom, contract, ' or t Of debt.
decree of Court tq the contrary, an agticulturist shall be in instalments. :
entitled to pay within four months of the commencement of
i
' .\
this Act the interest due on any debt due by him up to the
+ *>, . -
a.
commencement of this Act afid one-eighth of the principal
"
. "
outstanding or one-fourth of the total amount outstanding,
,i
I , ,
,7
r' """'
, . .':I
, { ?>
whichever is less, rind the balance of the debt in three
equal annual instaln~en~s on or bef~re the 1st July of each of
the succeeding three years wit' :l.; ;,t:~,~:e".?!:3 (in such
instalment up to that date.
Exp2anatiori.-Ir the case of a decrec, iki: amouilt
decreed shall be deemed to be the p~itlsipal.
(2) Whcsc, in respcct of a decree fbr debt passed -
before the commenc;errienl. of this Act, a debtor fails to
make any one of the gsyrueots spcciiied in sub-section (1)
the decree holder shall be entitled to execute the decree in
respect of the instaln~ent which is in defadt.
I (3) In ilily suit fried alter the colnrneizcei~lent of this
Act, the Court in decreeing the suit shall provide for the
immediate payment of such instalment or lnstallnents as
would have become due '[under the provisions oQ sub-
section (1) and the balalce in further iretslments as speci-
fied therein.
(4) Where in any suit for the recovery of a debt
pending at the colnmencement of this Act, the debtor claims
to be an agriculturist, tlis Court shall, if the debtor is an
agriculturist, pass a decrce for im~nediate payment of such
instalment o. '7-ctallnents as would have become payable
under t'.: provisions of sub-section (1) and the balance in
further instalments as specified therein,
(5) Nothing contained in this Act shall bar the Court
from passing a decree or making an ordcr in an application
for execution of the deciec under such terms and conditions
as may be inoR favourable to thb debtor than those provi-
. ded for in this section either of its own motion upon a
consideration of ail the circumstances CC L~G cosc or upon
an agreement between ti12 parties.
(6) Where in any suit to recover a debt or in any
application for the execution of a decrce therefor the debt
is payable by an agricultorist jointly or jointly and severally
with a non-agriculturist, the Court shall pass a decree or
make an order for the paylnellt of the debt found due from --
1 These words were subjtit uted foi the words "under provi-
sions of" by section 3 of, and the Second Schedule to, the Tamil
WaduRepealing and Amending Act, 1955 (Tamil Nadu ~ct
XXXV of 1955.)
- . -- - -- - - -- -' ---
1955:.TbN.ActI] IndebtedAgriculturists
(Repayment of Debts)
1
(2) Where any such application is made, the Court.
I1 pa& an order recdiding part-satisfaction of the debt if .
amount deposited is the correct amount.
(3) The Court shall dis&ss the application-
(a) if the applicant is not an agriculturist, or
'dl t
(b) if the liability is not a debt, or
(c) if the amount deposited is insufficient and tbe
applicant on being required by the Court to deposit tbe
deficit amount within a time flxed by the Court, fails to
Appeals. 6. An appeal shall lie From an order passed by a Court
under section 5, as if such an order relates to the execution,
I discharge or sarisfaction of a decree within the meaning of
section 47 of the Code of Civil 13rocedare,. I908 (Central
Act V of' 1908).
Presurn~tion 7. (1) Every transfer of imnlovabie property mado by
as to transfer of a debtor entitled to the benefits of this Act after the 1st
ilnnlovabl: October 1953 and before the colnplete discharge of his debt,
prop*rty of shall, in any suit or other proceeding with I-cspect ?o such thc debtor. transfer, be presumed, until the contrary is proved to have
been made with iilte~lt to def~at or delqy the creditors of
the tr:! nsferor.
(2) Where s debtor entitled to the benefits of this Act
has allowed, ill collusion with another: his immovable pro-
perty ;o be sold 4~fio~. the 1st October 19.53 throrlgh Court
with rr view tto defeitc or delay his creditors, the sale shall be
voidable at the op!idn oi any crcdiini. .;a d~!i.ntec; or delayed,
Exclusion of 8. In computhg the period of limitation for a suit for
time for recovery of a debt or an application for the execution of a
limitation* decree in respec! of 3 debt, thp tixe during which the
institution of the suit or the nlnkine of rhe application
was barred under section 3 shall be Sucluded.
Effect of 9. Where a debt is payable by an agriculturist either by
payment or himself or jointly or jointly and s-verally with a non-;gri-
deposit mder culturist and where the agriculturist makes paynlent or section 4 or section 5, deposits amount tonrnrds that debt ns provided for in
seaion 1 or sectki~ 5. n frrsh period ~7f lin:itarion shall
computed fro111 rhc rime \\-hen the payg-iiienr or deposit was
made both aga..nst the dgric~llturi~f arld non-agriculturist,
Power to 10. (1) The State Governmciii may make rules for
make rules. carrying out the purposes of this Act.
#
(2) The rules so made shall-be placed on the fable of
each House of the Legislature as soon as they are published
and shall be subject to such modification whether by way of
repeal or amendment as tlla Legislature may make during
the session in which thrj are so laid.