The Telangana Agricultural Indebtedness (Relief) Act, 1977.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA AGRICULTURAL INDEBTEDNESS (RELIEF)
ACT, 1977.
(ACT NO. 7 OF 1977)
ARRANGEMENT OF SECTIONS
Sections
CHAPTER - I
PRELIMINARY.
1. Short title, extent and commencement.
2. Declaration.
3. Definitions.
CHAPTER - II
RELIEF FROM INDEBTEDNESS.
4. Discharge of debts and relief to debtors.
5. Creditors to file statement in cases of property
pledged.
6. Debtors to apply in certain cases.
7. Appeals.
CHAPTER - III
MISCELLANEOUS
8. Constitution of Tribunals and Appellate Tribunals.
9. Powers of Tribunal and Appellate Tribunals.
10. Execution of order or decision of Tribunals and
Appellate Tribunals.
11. Penalty.
12. Offences by Companies.
13. Burden of proof.
14. Bar of jurisdiction of Civil Courts.
2 [Act No. 7 of 1977]
15. Protection of action taken in good faith.
16. Power to make rules.
17. Effect of other laws.
18. Power to remove difficulties.
19. Repeal of Ordinance 25 of 1976.
THE TELANGANA AGRICULTURAL INDEBTEDNESS
(RELIEF) ACT, 1977.1
ACT No.7 OF1977.
CHAPTER - I
PRELIMINARY.
1. (1) This Act may be called the 2Telangana Agricultural
Indebtedness (Relief) Act, 1977.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall be deemed to have come into force on the
29th December, 1976.
2. It is hereby declared that this Act is for giving effect to
the policy of the State towards securing the principles
specified in Article 46 of the Constitution.
3. In this Act, unless the context otherwise requires,
(a) „agriculture‟ with its grammatical variations and
cognate expressions includes,-
(i) horticulture;
(ii) the raising of crops (including plantation crops),
grass or garden produce;
1.The Andhra Pradesh Agricultural Indebtedness (Relief) Act, 1977
received the assent of the President on 29.04.1977. The said Act in force
in the combined State, as on 02.06.2014, has been adapted to the State
of Telangana, under section 101 of the Andhra Pradesh Reorgansiation
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws
Order, 2016, issued in G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Short title, extent
and
commencement.
Declaration.
Definitions.
2 [Act No.7 of 1977]
(iii) dairy farming;
(iv) poultry farming;
(v) breeding of livestock and bees;
(vi) grazing;
but does not include the cutting of wood only;
(b) „agricultural labourer ‟ means a person who does
not hold any agricultural land and whose principal means of
livelihood is by manual labour on agricultural land, in the
capacity of a labourer on hire or on exchange, whether paid
in cash or in kind or partly in cash and partly in kind;
(c) „agricultural land‟ means land used for purposes of
agriculture and which is assessed by the Government to
land revenue, but not being land appurtenant to a
residential building situate within a Municipality or
Cantonment;
(d) „annual household income‟ means the aggregate of
the annual income from all sources of all the members of a
family;
(e) „Appellate Tribunal‟ means the Appellate Tribunal
constituted under sub-section (2) of section 8;
(f) „bank‟ means a banking company as defined in
clause (c) of section 5 of the Banking Regulation Act, 1949
and includes the State Bank of India constituted under the
State Bank of India Act, 1955, a subsidiary bank as defined
in the State Bank of India (Subsidiary Banks) Act, 1959, a
corresponding new bank as specified in the First Schedule
to the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1970, the Agricultural Refinance and
Central Act 10 of 1949
Central Act 23 of 1955
Central Act 33 of 1959
Central Act 5 of 1970
[Act No.7 of 1977] 3
Development Corporation established under the Agricultural
Refinance and Development Corporation Act, 1963, a
Regional Rural Bank e stablished under the Regional Rural
Banks Act, 1976, any banking institution notified by the
Central Government under section 51 of the Banking
Regulation A ct, 1949, and any other financial institution
which may be notified in this behalf by the State
Government;
(g) „co-operative society‟ means a co-operative society
including an agricultural development bank registered or
deemed to be registered under the 3Telangana
Co-operative Societies Act, 1964;
(h) „creditor‟ means a person from or in respect of
whom the debtor has borrowed or incurred a debt and
includes his heirs, legal representatives and assigns;
(i) „debt‟ includes any liability owing to a creditor in
cash or in kind, whether secured or unsecured payable
under a decree or order of a civil court or otherwise and
subsisting at the commencement of this Act, but does not
include-
(i) a debt due to the Central Government or any State
Government or any local author ity or a co -operative society
or a bank, including arrears of taxes due to the Central
Government or a State Government, or a local authority;
(ii) a debt due to any Government company within
the meaning of 4section 617 of the Companies Act, 1956;
3. Substituted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
4. Now refer to the relevant provisions of the Companies Act, 2013
(Central Act 18 of 2013).
Central Act 10 of 1963
Central Act 21 of 1976
Central Act 10 of 1949
Act 7 of 1964
Central Act 1 of 1956.
4 [Act No.7 of 1977]
(iii) a debt due to the Life Insurance Corporation of
India established under the Life Insurance Corpora tion Act,
1956, or to any other corporation established by or under
any law for the time being in force and owned or controlled
by the Central Government or any State Government;
(iv) any rent due in respect of any property including
an agricultural land let out to a debtor;
(v) any liability arising out of breach of trust or any
tortious liability;
(vi) any liability in respect of wages or remuneration
due as salary or otherwise for services rendered;
(vii) any liability in respect of maintenance whether
under a decree of a civil court or otherwise;
(viii) any debt which represen ts the price of any
goods or property whether movable or immovable
purchased by a debtor or any amou nt due under a hire
purchase agreement;
(ix) any advan ce of money given to a debtor by a
person as the price of goods or prope rty to be sold later on
by the debtor;
(x) any sum recoverable as arrears of land revenue;
(xi) any sum payable to any religious , charitable or
educational institution including wakf of a public nature;
(xii) any debt contracted by a debtor from a person
who is an agricultural laboure r, a rural artisan or a small
farmer;
Central Act 31 of 1956.
[Act No.7 of 1977] 5
(j) „debtor‟ means an agricultural laboure r, a rural
artisan or a small farmer, who has borrowed or incurred any
debt before the commencement of this Act;
(k) „dry land‟ means land registered as dry, manawar i,
asmantari, baghat or garden land, or special rate dry la nd,
in the land revenue accounts of the Government or
assessed as such; and includes any other agricultural land
excluding wet land;
(l) „family‟ in relation to a person, means the individual,
the wife or husband, as the case may be, of such individual
and their unmarried minor children;
Explanation.- For the purposes of this clause „minor‟
means a person who has not completed his or her age of
eighteen years;
(m) „Government‟ means the State Government;
(n) „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 c alled,
and whether the same is paid or payable entirely in cash or
entirely in kind or partly in cash and partly in kind and
whether the same is expressly mentioned or not in the
document or contract, if any;
(o) „notification‟ means a notifi cation publi shed in the
5Telangana Gazette; and the word „notified‟ shall be
construed accordingly;
(p) „person‟ means an individual or a family;
5. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
6 [Act No.7 of 1977]
(q) „prescribed‟ means prescribed by rules made by
the Government under this Act;
(r) „rural artisan ‟ means a person who does not hold
any agricultural land and whose principal means of
livelihood is produc tion or repair of traditional tools,
implements and other articles or things used for agriculture
or purposes ancillary thereto and 6[includes a fisherman and
any person] who normally earns his livelihood by practising
a craft either by his own labour or by the labour of all or any
of the members of his family in rural area;
(s) „Scheduled Tribes‟ shall have the meaning assigned
to it in clause (25) of article 366 of the Constitution;
(t) „small farmer ‟ means a person whose principa l
means of livelihood is income derived from agricultural land
and who holds and personally cultivates, or who culti vates
as a tenant or sharecropper or mortgagee with possession,
agricultural land which does not exceed in extent,-
(i) in the case of persons other than the members of
the Scheduled Tribes, one hectare, if it is wet, or two
hectares, if it is dry;
(ii) in the case of the members of the Scheduled
Tribes, two hectares, if it is wet, or four hectares, if it is dry
but does not include any person whose annual household
income, other than from agriculture exceeds one thousand
and two hundred rupees in an y two years within three years
immediately preceding the commencement of this Act.
Explanation.- For the purposes of computing the extent
of land under this clause, one hectare of wet land shall be
deemed to be equal to two hectares of dry land;
6. Substituted by Act No. 29 of 1984.
[Act No.7 of 1977] 7
(u) „Tahsildar‟ includes a Deputy Tahsi ldar in
independent charge of a taluk or sub -taluk and any other
officer of the Revenue Department not below the rank of a
Deputy Tahsildar empowered by the Government to
exercise the powers and perform the functions of a
Tahsildar under this Act;
(v) „Transferee of the creditor‟ includes any subsequent
transferee or an assignee of any person in possession of the
property pledged or mortgaged;
(w) „Tribunal‟ means a tribunal constituted under sub-
section (1) of section 8;
(x) „wet land‟ means land registered as wet, single crop
wet, double crop wet, compounded double crop wet or
special rate wet land, in the land revenue accounts of the
Government or assessed as such.
CHAPTER II-RELIEF FROM INDEBTEDNESS.
4. (1) Notwithstanding anything in *the Andhra Pradesh
(Andhra Area) Agriculturists Relief Act 1938, 7Telangana
Money lenders Act, 1349 F., *the Andhra Pradesh (Andhra
Area) Pawn -Brokers Act, 1943 8The Andhra Pradesh
(Telangana Area) Agricultural Debtor‟s Relief Act, 1956 , 9the
Telangana (Scheduled Areas) Money Lenders Regulation,
1960, 9the Telangana Indebted Agriculturists, Landless
Labourers and Artisans (Temporary Relief) Act, 1976 or any
other law for the time being in force or any contract or other
instrument having the force of law and save as otherwise
provided in this Act with effect on and fr om the
* Andhra Area Act.
7. Adapted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016.
8. Repealed by the Telangana Adaptation of Laws (No.2) Order, 2016,
issued in G.O.Ms.No.46, Law (F) Department, dated 01.06.2016.
9. Adapted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Discharge of
debts and relief to
debtors.
Act 4 of 1938.
Act 5 of 1349 F.
Act 23 of 1943.
Act 16 of 1956.
Regulation 1 of 1960.
Act 24 of 1976.
8 [Act No.7 of 1977]
commencement of this Act, every debt, including interest, if
any, owing to any creditor by an agricultural labourer, a rural
artisan or a small farmer shall be deemed to be wholly
discharged.
(2) (a) No Civil Court shall entertain any suit or othe r
proceeding against the debtor for the recovery of any
amount of the debt, including interest, if any, which is
deemed to be discharged under sub-section (1):
Provided that where any suit or other proceeding is
instituted jointly against the debtor and any other person,
nothing in this sub -section shall apply to the maintainability
of su ch suit or proceeding in so far as it relates to such
other person.
(b) All suits and other proceedings including appeals,
revisions, attachments or execution proceed ings pending at
the c ommencement of this Act against any debtor for the
recovery of any su ch debt, including interest, if any, shall
abate:
Provided that nothing in this clause shall apply to the
sale, in respect of any such debt, of-
(i) any movable property held and concluded before
the commencement of this Act;
(ii) any immovable property , confirmed before such
commencement.
(c) Every debtor undergoing detention in a civil prison
in execution of any decree for money passed against him by
a Civil Court in respect of any such debt, including interest,
if any, shall be released.
[Act No.7 of 1977] 9
(3) (a) Every movable property pledged by a debtor
whose debt is deemed to be discharged under sub -section
(1), shall stand released in favour of such debtor and the
creditor shall be bound to deliver the same to the debtor
forthwith.
(b) Every mortgage executed by such debtor in
favour of the creditor shall stand redeemed and the
mortgaged property shall be released in favour of such
debtor.
Explanation:- Nothing in this section shall be construed
as entitling any debtor for refund of any part of any debt
repaid or interest paid already by him or recovered from him
before the commencement of this Act.
5. (1) Every creditor referred to in clause (a) of
sub-section (3) of section 4 shall, within such period as may
be prescribed, furnish to the Tribunal having jurisdiction
over the area where such creditor ha s his ordinary place of
business, a statement in such form as may be prescribed
containing the nam es of all persons who hav e pledged
movable property with him, the nature and description of
such property, the amount advanced and due as on the
commencement of this Act, the rate of interest and such
other particulars as may be prescribed.
(2) A debtor referred to in clause (a) of sub -section (3)
of section 4 may also make an applica tion to the Tribunal
having jurisdiction over the area where his creditor ha s his
ordinary place of business for an order for the delivery of the
movable property pledged by the debtor.
(3) On receipt of a statement under sub -section (1) or
an application under sub-section (2), and after such enquiry
conducted in the manner pres cribed, the Tribunal shall, by
order, determine:-
Creditors to file
statement in
cases of property
pledged.
10 [Act No.7 of 1977]
(i) where a statement has been furnished by the
creditor under sub -section (1), which of the persons who
have pledged movable property with him are entitled to
relief under section 4, and
(ii) where an application has been made by the
debtor under sub -section (2), whether the debtor is entitled
to relief under section 4, and direct the credit or to produce
on or before the date specified in the order the movable
property pledged by such person or debtor.
(4) where the movable property pledged by the debtor
is in the possession of any transferee of the creditor, the
creditor shall redeem the said property from such tr ansferee
and produce it on or before the date specified in the order
referred to in sub-section (3).
(5) If the creditor fails to produce the movable property
as directed in the order under sub-section (3),-
(a) the Tribunal may enter any premises of the
creditor or of the transferee of the creditor and search and
seize the said property; and
(b) where the movable property is in the possession
of any bank, the Tribunal shall-
(i) by an order, direct the bank t o deposit on or
before the date specified in the order, the movable property
with the Tribunal together with a statement specifying the
amount due to the bank in respect of the said property and
simultaneously issue a certificate to the bank to the effect
that the amount due to the bank in respect of the said
property shall be recovered from the creditor as if it were an
arrear of land revenue and paid to the bank, and
[Act No.7 of 1977] 11
(ii) on the bank depositing the said property with
the Tribunal acknowledge in writi ng the receipt of the
movable property and proceed to recover from th e creditor
such amount as is due to the bank in respect of the said
property as if it were an arrear of land revenue and on such
recovery pay the same to the bank.
(6) After such produc tion or recovery or deposit of the
movable property pledged the Tribunal shall deliver th e said
property to the debtor.
(7) Pending determination of the question under
sub-section (3) no creditor or the transferee of the creditor
shall sell or pledge or otherwise dispose of any movable
property pledged by the debtor.
(8) Notwithstanding anything in the Telangana Money
Lenders Act, 1349 F , the Andhra Pradesh (Andhra Area)
Pawn-brokers Act, 1943 or the Telangana (Scheduled
Areas) Money -Lenders Regulation, 1960 or any other
corresponding law for the time being in force, the Tribunal,-
(a) may enter any premises of the creditor or of the
transferee of the creditor and search and seize the movable
properties pledged by debtors and arrange for their safe
custody,
(b) shall proceed to determine which of the movable
properties so seized are to b e released to the debtor and
pass orders accordingly.
(9) The provisions of sections 100 and 165 of the Code
of Criminal Procedure, 1973 relating to search and seizure
shall so far as may be, apply to searches and seizures
under sub-sections (5) and (8).
Central Act 2 of 1974.
Act 5 of 1349 F.
Act 23 of 1943
Regulation 1 of 1960.
12 [Act No.7 of 1977]
6. (1) A debtor referred to in clause (b) of sub-section (3)
of section 4 may make an application to the Tribunal having
jurisdiction over the area within which such debtor ordinarily
resides; for an order releasing the mortgaged property and
for the grant of a certificate of redemption.
(2) (a) On receipt of such application and after such
enquiry conducted in the manner prescribed , the Tribunal
shall pass an order releasing the mortgaged proper ty and
grant a certificate of redemption in the prescribed form
which shall be admissible as eviden ce of such redempt ion
in any proceeding before any court or other authority;
(b) The Tribu nal shall also direct the credi tor or the
transferee of the creditor-
(i) to deliver possession of the mortgaged property
to the debtor on or before the date specified in the order, if
the debtor is not already in possession of the mortgaged
property; and
(ii) to produce on or before the date specified in the
order, the mortgage deed or other document and the
Tribunal shall make an endorsement of redemption on the
mortgage deed or other document.
(3) Pending orders under sub -section (2), no creditor
or the transferee of the creditor shall transfer or otherwise
assign his interest in, or exer cise his right of fore closure in
respect of the property mortgaged by the debtor.
(4) where the mortgaged property has been transferred
or any right therein has been assigned to any bank by the
creditor, the Tribunal shall recover from the creditor such
amount as is due to such bank in respect of the said
mortgaged property, as if it were an arrear of land revenue,
and shall pay the same to the bank.
Debtors to apply
in certain cases.
[Act No.7 of 1977] 13
7. Any person aggrieved by any order or de cision made
by the Tribunal under section 5 or section 6 may within sixty
days from the date of communication of the order or
decision to him appeal to the Appellate Tribunal subje ct to
payment of such fees as may be prescribed.
CHAPTER III- MISCELLANEOUS
8. (1) (a) The Government may, by notifi cation constitute
as many Tribunals as may be necessary for the purposes of
this Act and shall specify in such notification, the jurisdiction
of each such Tribunal.
(b) Each Tribunal constituted under clause (a) shall
consist of a single member who shall be a Tahsildar.
(2) (a) The Government may, by notifica tion constitute
as many Appellate Tribunals as may be nece ssary for the
purposes of this Act and shall specify in such notification the
jurisdiction of each such Appellate Tribunal.
(b) Each Appellate Tribunal constituted under clause
(a) shall cons ist of a single member who shall be an officer
not below the rank of a Collector.
9. (1) The Tribunal and the Appellate Tribunal shall have
the same powers as are vested in a Civil Court under t he
Code of Civil Procedure, 1908 for summoning and enforcing
the attendance of any person and examining him on oath
and for requiring production of any document.
(2) In any proceedings under this Act any party may be
represented by an agent authorised in writing, except by a
legal practition er as defined in section 2 of the Advocates
Act, 1961.
Appeals.
Constitution of
Tribunals and
Appellate
Tribunals.
Powers of
Tribunal and
Appellate
Tribunals.
Central Act 5 of 1908.
Central Act 25 of 1961.
14 [Act No.7 of 1977]
(3) The procedure to be followed by the Tribuna l or the
Appellate Tribunal in any proceedings befo re it, shall,
subject to the provisions of this Act, be in a ccordance with
such rules as may be prescribed.
10. The order or decision of the Tribunal or the Appellate
Tribunal made under this Act shall be executed by the Civil
Court having jurisdiction as if it were a decree or order of
that Court.
11. (1) Any person failing to furnish the statement under
section 5 or to comply with the order made or direction
given under that section or section 6 or other wise
contravening the provisions of either of the said sections
shall be punished with imprisonment for a term which shall
not be less than three months but which may extend to one
year and with fine which shall not be less than one thousand
rupees but which may extend to five thousand rupees.
(2) Every offence punishable under sub -section (1 )
shall be cognizable.
(3) Every offence punishable under sub -section (1)
shall be tried in a summary way and the provisions of
sections 262 to 265 (both inclusi ve) of the Code of Criminal
Procedure, 1973, shall, as far as may be apply to such trial.
12. (1) Where an offence under this Act has been
committed by a company, every person who at the time the
offence was committed w as in charge of , and was
responsible to the company for the conduct, of the business
of the company as well as the company, shall be deemed to
be guilty of the offence and shall be Iiable to be proceeded
against and punished accordingly:
Provided that nothing in this sub -section shall ren der
any such person liable to an y punishment if he proves that
Execution of order
or decision of
Tribunals and
Appellate
Tribunals.
Central Act 2 of 1974
Offences by
companies.
Penalty.
[Act No.7 of 1977] 15
the offence was committed without his knowledge or that he
exercised all due deligence to prevent the comm ission of
such offence.
(2) Notwithstanding anyt hing in sub -section (1), where
an offence under this Act has been committed by a
company and it is proved that the offence has been
committed with the consent or connivance of or is
attributable to any neglect on the part of any director,
manager, secretar y or other officer of the company, such
director, manager, secretary or other officer of the company
shall also be deemed to be guilty of that offence and shall
be liable to be proceeded against and punished
accordingly.
Explanation:- For the purpose of this section,-
(a) “ company” means any body corporate and
includes a firm or other association of individuals; and
(b) “ director” in relation to a firm, means a partner in
the firm.
13. In any suit or proceeding, the burden of proving that
the debtor is not entitled to the protection of this Act shall,
notwithstanding anything in any law for the time being in
force, lie on the creditor.
14. (1) No Civil Court shall have jurisdiction in re spect of
any matter which the Tribunal or the Appel late Tribunal is
empowered by or under this Act to determine.
(2) No order passed or proceeding taken by a ny officer
or authority under this Act shall be called in question in any
court of Law.
Burden of proof.
Bar of jurisdiction
of Civil Courts.
16 [Act No.7 of 1977]
15. No suit, prosecution or other legal proceeding shall lie
against any officer or authority for anything which is in good
faith done or intended to be done in pursuance of this Act or
any rules made thereunder.
16. (1) The Government may, by notification, make rules
for carrying out all or any of the purposes of this Act.
(2) Every rule made under this Act shall immediate ly
after it is made, be laid before each House of the State
Legislature if it is in session and if it is not in session in the
session immediately following, for a total period of fourteen
days, which may be comprised in one session or in two
successive sessions, and if, before the expiration of the
session in whic h it is so laid or the session immediately
following both Houses agree in making any modification in
the rule or in the annulment of rule, the rule shall, from the
date on which the modification or annulment is notified have
effect only in such modified fo rm or shall stand annulled, as
the case may be; so however that any such modification or
annulment shall be w ithout prejudice to the validity of
anything previously done under that rule.
17. Save as otherwise provided in this Act, the provisions
of this Act shall be in addition to and not in derogation of
any other law for the time being in force.
18. (1) If any difficulty arises in giving effect to the
provisions of this Act, the Government may, b y general or
special order published in the 10Telangana Gazette, make
such provisions, not inconsistent with the provisions of this
Act, as appear to them to be necessary or expedient for the
removal of the difficulty:
10. Substituted by G.O.Ms.No.45, Law (F ) Department, dated
01.06.2016.
Protection of
action taken in
good faith.
Power to make
rules.
Effect of other
laws.
Power to remove
difficulties.
[Act No.7 of 1977] 17
Provided that no such order shall be made after the
expiration of two years from the commencement of this Act.
(2) Every order passed under sub -section (1) shall be
laid before each House of the State Legislature.
19. The Andhra Pradesh Agricultural Indebtedness (Relief)
Ordinance, 1976 is hereby repealed.
* * *
Repeal of
Ordinance 25 of
1976.
Lex