LexThe Telangana State Commission for Debt Relief (Small Farmers, Agricultural Labourers and Rural Artisans) Act, 2016.
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Open in Lexace · Ask the AI about this actTHE TELANGANA STATE COMMISSION FOR DEBT RELIEF
(SMALL FARMERS, AGRICULTURAL LABOURERS AND RURAL
ARTISANS) ACT, 2016.
(ACT NO. 12 OF 2016)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Constitution of the Commission.
4. Term of the Commission and conditions of service of
the members.
5. Powers and functions of the Commission.
6. To declare as distress affected area or distress
affected crop.
7. Application for debt relief.
8. Sittings of the Commission.
9. Special provisions in respect of settlement of certain
loans taken by farmer.
10. Re-scheduling of loans taken by a farmer from
financial institutions.
11. Bar of suits, applications and other proceedings.
12. Payment of debt in instalments.
13. The debt shall be deemed as fully repaid.
14. Annual Report to be laid before the Legislature.
15. Accounts and Audit.
16. Overriding effect of Act.
17. Bar of jurisdiction of Civil Court.
18. Member of the Commission shall be public servants.
2 [Act No. 12 of 2016]
19. Protection of action taken in good faith.
20. Power to remove difficulties.
21. Power to make rules.
THE TELANGANA STATE COMMISSION FOR DEBT RELIEF
(SMALL FARMERS, AGRICULTURAL LABOURERS AND
RURAL ARTISANS) ACT, 2016.
ACT No. 12 OF 2016.
[27th May, 2016]
AN ACT TO PROVIDE FOR CONSTITUTION OF A
COMMISSION WITH POWER TO PASS AWARDS
AFTER ADJUDICATION AND TO RECOMMEND
APPROPRIATE MEASURES FOR THE REDRESSAL OF
THE GRIEVANCES OF SMALL FARMERS,
AGRICULTURAL LABOURERS AND RURAL ARTISANS
THROUGH CONCILIATION AND NEGOTIATION AND
FOR MATTERS CONNECTED THEREWITH OR
INCIDENTAL THERETO.
Be it enacted by the Legislature of the State of
Telangana in the Sixty -seventh Year of the Republic of India
as follows:-
1. (1) This Act may be called the Telangana State
Commission for Debt Relief (Small Farmers, Agricultural
Labourers and Rural Artisans) Act, 2016.
(2) It extends to the whole of the State of Telangana.
(3) It shall come into force on such date as the
Government may by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(i) “agriculture” with its grammatical variations and
cognate expressions includes,-
Received the assent of the Governor on the 26th May, 2016.
Short title, extent
and
commencement.
Definitions.
2 [Act No.12 of 2016]
(a) horticulture;
(b) the raising of crops (including plantation crops)
grass or garden produce;
(c) dairy farming;
(d) poultry farming;
(e) breeding of livestock and bees;
(f) grazing;
but does not include the cutting of wood only;
(ii) “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;
(iii) “appropriate level of debt” means the amount
determined by the Commission as repayable by the debtor
under clause (b) of sub-section (1) of section 5;
(iv) “Commission” means the Telangana State
Commission for Debt Relief constituted under section 3;
(v) “Co-operative Society” means a society registered
or deemed to have been registered under the *Telangana
Co-operative Societies Act, 1964;
(vi) “creditor” means any person engaged in money
lending, whether under a licence or not and includes his
* Adapted by G.O.Ms.No.53, Agriculture and Cooperation (Coop -II)
Department, dated 20.05.2016.
[Act No.12 of 2016] 3
heirs, legal representatives, assignees, Co-operative Society
and any other person as may be notified by the
Government;
(vii) “debt” means any liability, whether secured or
unsecured due from a farmer, agricultural labourer and rural
artisan on or before the date of commencement of this Act
or, in respect of any particular distress affected area in the
State, on or before such date as the Government may, by
notification in the Gazette, specify whether payable under a
contract, or under a decree or order of any Court or tribunal
or otherwise and includes,
any sum payable to,-
an institutional creditor;
a co-operative society;
any sum borrowed by a farmer, agricultural labourer
and rural artisan from the creditor;
but does not include any loan amount taken by the
farmer, agricultural labourer and rural artisan for commercial
purposes or luxury other than agricultural allied commercial
purposes, to augment his income and the amount payable
to Central or State Governments and the amount due to
Local Self Government Institutions, Statutory Bodies, Central
or State Public Sector Undertakings and other Institutions as
may be notified by the Government;
(viii) “district” means a revenue district;
(ix) “distress affected area” means revenue district or
districts or part thereof in the State, declared by the
Government under section 6, for the purpose of this Act;
4 [Act No.12 of 2016]
(x) “distress affected crop” means any crop or crops of
the State declared by the Government under section 6, for
the purpose of this Act;
(xi) “distress affected farmer” means a farmer declared
as such by the Commission and includes agricultural
labourer and rural artisan for the purpose of this Act;
Note: Farmer means “a small farm er for the purpose of
this Act”.
(xii) “fair rate of interest” means the rate of interest
determined by the Commission under clause (b) of sub -
section (1) of section 5 of this Act;
(xiii) “financial institution” means any financial
institution constituted by or under any Central Act, State Act
for the time being in force and owned and controlled by the
Government;
(xiv) “Government” means the Government of
Telangana;
(xv) “institutional creditor” means the State Bank of
India or any Subsidiary Bank within the meaning of clause
(k) of section 2 of the State Bank of India (Subsidiary
Bank‟s) Act, 1959 or any Scheduled Bank;
(xvi) “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 of contract, if any;
[Act No.12 of 2016] 5
(xvii) “member” means a member of the Commissi on
constituted under section 3 of the Act and includes the
Chairman;
(xviii) “notification” means a notification published in
the Telangana Gazette; and the word „notified‟ shall be
construed accordingly;
(xix) “penal interest” means any amount payable in
excess of interest on a debt;
(xx) “prescribed” means prescribed by rules made by
the Government under this Act;
(xxi) “principal amount” means the amount originally
advanced together with the amount, if any, as has been
subsequently advanced, notwithstanding any stipulation to
treat any interest as capital and notwithstanding that the
debt has been renewed, whether by the same farmer or by
his heirs, assignees, or legal representatives or by any other
person acting on his b ehalf or on his interest, and whether
in favour of the same creditor or his heirs, assignees or legal
representatives or of any other person acting on his behalf
or in his interest;
(xxii) “rural artisan” means a person who does not hold
any agricultural land and whose principal means of
livelihood is production or repair of traditional tools,
implements and other articles or things used for agriculture
or purposes ancillary thereto and includes a fisherma n or
any person who normally earns his livelihood by practicing a
craft either by his own labour or by the labour of all or any of
the members of his family in rural area;
(xxiii) “Secretary” means the Secretary to the
Commission appointed under sub-section (4) of section 3;
6 [Act No.12 of 2016]
(xxiv) “small farmer ” means a person whose principal
means of livelihood is income derived from agricultural land
and who holds and personally cultivates, or who cultivates
as a tenant or share cropper or mortgagee with possession,
agricultural land which does not exceed in extent,-
(a) 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;
(b) in the case of the members of the Scheduled
Tribes, two hectares, if it is wet, or four hectares, if it is dry;
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.
3. (1) The Government shall, as soon as may be after the
commencement of this Act, by notification in the Gazette,
constitute a Commission by the name, “the Telangana State
Commission for Debt Relief (Small Farmers, Agricultural
Labourers and Rural Artisans)”, for the purpose of
exercising the powers and performing the functions under
this Act.
(2) The Commission shall consist of five members,
namely:-
(i) a retired High Court Judge : Chairman
(ii) Members not exceeding four,
either from farmers community or
persons of eminence having
experience and expertise in
economic/co-operative/agricultural
sector
: Members
Constitution of the
Commission.
[Act No.12 of 2016] 7
(3) The Chairman and Members shall be nominated by
the Government.
(4) The Government may, appoint a Secretary and
other staff as may be necessary, to assist the Commission in
such manner as may be prescribed.
(5) The Secretary and other staff of the Commission
shall be under to the administrative control of the Chairman.
4. (1) The term of the Commission shall be 3 years:
Provided that the Government may extend the period, if
considered necessary.
(2) The Commission shall regulate its own procedure
for the conduct of its business.
(3) The salary, allowances, and the other conditions of
service of the Chairman and members shall be, as may be
prescribed.
5. (1) The Commission shall have all such powers as are
necessary for achieving the objects of this Act, and in
particular,
(a) to recommend to the Government either suo motu
or on application, after such enquiry as it may deem fit and
subject to such general guidelines as may be prescribed by
Government, to declare a district or districts or part thereof
or a crop or crops as distress affected area, or distress
affected crop, as the case may be, and on application to
declare a farmer as distress affected farmer subject to such
enquiry and norms;
(b) to fix, in the case of creditors other than
institutional creditors, a fair rate of interest and an
Term of the
Commission and
conditions of
service of the
members.
Powers and
functions of the
Commission.
8 [Act No.12 of 2016]
appropriate level of debt, to be payable as the Commission
may consider just and reasonable by a farmer declared as
distress affected or related to an area or crop declared as
distress affected area or distress affected crop as per
section 6 as the case may be;
(c) to undertake conciliation for settlement of disputes
between indebted farmers and creditors, other than
institutional creditors, on th e basis of the fair rate of interest
and appropriate level of debt fixed under clause (b);
(d) to adjudicate disputes between farmers described
in clause (b) and creditors other than institutional creditors,
and to pass awards which shall be binding on both parties:
Provided that before passing an award as per this
clause a creditor shall be given a reason able opportunity of
being heard;
(e) to enter into negotiations with the creditors for
loan waiver, interest rate relief, loan rescheduling or lo an
moratorium to farmers described in clause (b);
(f) to recommend to the Government regarding the
extent and the manner in which the debt relief to be granted
to the farmers;
(g) to recommend to the Government to take over the
entire or partial debt and exonerate the farmers, from the
effects of the debt;
(h) to recommend to the Government to do such acts
as may be necessary to ensure that future credit
requirements of the farmers are met through such agencies,
as may be prescribed;
[Act No.12 of 2016] 9
(i) to take such action and to make such
recommendation as may be considered necessary as in
clauses (a) to (h) in respect of agricultural la bourers and
rural artisans also;
(j) to make periodical reports to the Government
generally on any matter pertaining to the above aspects;
(k) to perform such other functions and exercise such
other powers, as may be prescribed.
(2) Issue orders keeping in abeyance the repayment of
all debts described in clauses (b) and (i) of sub -section (1)
to the creditors, other than institutional creditors, for a
period not less than one year but not more than 3 years:
Provided that such orders shall be subject to the
awards and directions under sub-section (1).
(3) Notwithstanding anything contained in any other
provisions of this Act, any debt relief granted to a farmer,
agricultural labourer and rural artisan by way of waiver of
principal, interest and penal interest, if any, shall not exceed
seventy five per cent if such debt is fifty thousand rupees or
less and fifty per ce nt, if such debt exceeds fifty thousand
rupees, arrived at after settlement or rupees one lakh
whichever is less.
(4) An award passed by the Commission under clause
(d) of sub-section (1) shall be final and shall not be called in
question in any court.
(5) The awards of Commission under clause (d) of sub-
section (1) shall be executed under the provisions of the
Code of Civil Procedure, 1908 as if it is decree of a Civil
Court.
Central Act V of 1908.
10 [Act No.12 of 2016]
(6) The Commission shall, for the purpose of exercising
the powers conferred by or under this Act, have all the
powers of a Civil Court while trying a suit under the Code of
Civil Procedure, 1908, in respect of the following matters,
namely:-
(a) summoning and enforcing the attendance of any
person and examining him on oath;
(b) requiring the discovery and production of any
documents;
(c) receiving evidence on affidavit;
(d) issuing commission for the examination of
witnesses or for local investigation;
(e) inspecting any property or thing concerning which
any decision has to be taken;
(f) requisitioning of any public record or copy thereof
from any court, authority or office; and
(g) any other matter which may be prescribed.
6. As soon as may be, after the receipt of a
recommendation under clause (a) of sub -section (1) of
section 5, the Government may declare, as the case may
be, as a distress affected area or a distress affected crop.
7. A farmer, agricultural labourer and rural artisan
claiming any debt relief under this Act shall file an
application before the Commission in such manner and in
the form as may be prescribed.
8. The Commission may decide the place of sitting,
quorum etc of its sittings.
To declare as
distress affected
area or distress
affected crop.
Application for
debt relief.
Sittings of the
Commission.
Central Act V of 1908.
[Act No.12 of 2016] 11
9. (1) Notwithstanding anything contained in this Act or in
any other law or contract or decree or order of any Court or
Tribunal, a member authorised by the Commission may
initiate negotiation to,-
(a) reschedule short -term loans into medium term
loans and medium term loans into long term loans, in
respect of the debts availed of by a farmer described in
clause (b) of sub -section (1) of section 5 from commercial
banks or other scheduled banks, or
(b) provide necessary facilities for one time
settlement of agriculture loans falling under the category of
non-performing assets, as per the guidelines issued by the
Reserve Bank of India, or
(c) waive penal interest as per the norms fixed by the
Reserve Bank of India, with the concurrence of the Reserve
Bank of India and the National Bank for Agriculture and
Rural Development.
(2) Where any settlement of loan is made under sub -
section (1), the said farmer shall be bound to repay such
loan to the bank concerned, within the period allowed by
such bank.
10. (1) Notwithstanding anything contained in this Act or in
any other law or contract or decree or order of any Court or
Tribunal, the Commission may reschedule the recovery of
loans availed by a farmer described in clause (b) of sub -
section (1) of section 5 on or before the date of declaration
as a distress affected area, distress affected crop under
section 6 or a distress affected farmer from any financial
institution notified by the Government for this purpose.
(2) Where the rescheduling of the loan is m ade under
sub-section (1), the farmer shall be bound to repay such
Special provisions
in respect of
settlement of
certain loans
taken by farmer.
Re-scheduling of
loans taken by a
farmer from
financial
institutions.
12 [Act No.12 of 2016]
loan with interest to the financial institution concerned within
the period allowed by Commission:
Provided that the Commission may, on application by
the farmer, exempt him, by order, from the repayment of the
same for the period so rescheduled, for the reasons to be
recorded:
Provided further that the farmer shall be bound to
repay the same on such later dates, so fixed by the
Commission.
11. No suit for recovery of debt shall be instituted, or
application for execution of a decree in respect of a debt
shall be made against a farmer described in clause (b) of
sub-section (1) of section 5 and no appeal, revision petition
or application for review against any decree or order in any
such suit or application shall be presented or made against
such a farmer in any Civil Court, or Tribunal or other
authority, and such suits, applications, appeals and petitions
instituted or made agai nst such a farmer before the date of
declaration of a district or part thereof as a distress affected
area and pending on such date shall stand stayed, for such
period as the Commission may recommend in that behalf.
12. (1) Notwithstanding anything contained in any law or
contract or in any decree or order of any Court or Tribunal, a
farmer described in clause (b) of sub-section (1) of section 5
may discharge his debts in suitable instalments together
with fair rate of in terest as recommended by the
Commission on the principal amount outstanding at the time
of each payment, in the manner as may be directed by the
Commission and on payment of the same in the manner
directed by the Commission, the whole debt shall be
deemed to be discharged.
Bar of suits,
applications and
other
proceedings.
Payment of debt
in instalments.
[Act No.12 of 2016] 13
(2) Where any instalment of a debt is not paid on the
due date as directed by the Commission, the creditor shall
be entitled to recover the same in the manner as may be
determined by the Commission:
Provided that, before taking decision by the
Commission under this section, the farmer shall be given an
opportunity of being heard.
13. Notwithstanding anything contained in this Act or in
any other law or contract or in any decree or order of any
Court or Tribunal, if a farmer, agricultural labourer, rural
artisan has repaid the principal amount taken as loan by him
and an amount equal to it to a creditor other than
institutional creditor, the debt shall be deemed to be fully
discharged.
14. (1) The Commission shall prepare a report of its
function of that year under this Act and the same shall be
submitted to Government in such form on or before such
date as may be prescribed.
(2) The Annual Report submitted to the Government by
the Commission under sub -section (1) shall be laid before
the Legislature, as soon as may be, after the same is
received by the Government.
15. (1) The Commission shall maintain proper accounts
and other relevant records and prepare an annual statement
of accounts, in such form as may be prescribed.
(2) The accounts of the Commission shall be audited
annually and the audited report shall be placed before the
Legislature.
16. The provisions of this Act or any rule or order made
thereunder shall have effect notwithstanding anything
Annual Report to
be laid before the
Legislature.
The debt shall be
deemed as fully
repaid.
Accounts and
Audit.
Overriding effect
of Act.
14 [Act No.12 of 2016]
inconsistent therewith contained in any law, other than this
Act, or any instrument having effect by virtue of any law
other than this Act.
17. No Civil Court shall have jurisdiction to settle, decide or
deal with any question or to determine any matter which is
by or under the Act or the rule made thereunder are
required to be settled, decided or dealt with or to be
determined by the Commission or the Government:
Provided that nothing in this section shall be applicable
to the execution proceedings under sub -section (5) of
section 5.
18. Every member of the Commission nominated under
sub-section (1) of section 3 and the Secretary and other staff
appointed under sub -section (4) shall be deemed to be a
public servant within the meaning of section 21 of the Indian
Penal Code 1860 (Central Act 45 of 1860).
19. No suit or legal proceeding shall lie against any
member of the Commission or Secretary or other officers for
anything which is done or purported to be done in good
faith under this Act.
20. (1) If any difficulty arises in giving effect to the
provisions of this Act, the Government may, by order, as
occasion requires, do anything not inconsistent with the
provisions of this Act, which appears to them to be
necessary for the purpose of removing the difficulty:
Provided that no such order shall be made after the
expiry of two years from the date of commencement of this
Act.
(2) Every order made under this section shall be laid
before the Legislature.
Bar of jurisdiction
of Civil Court.
Member of the
Commission shall
be public
servants.
Protection of
action taken in
good faith.
Power to remove
difficulties.
[Act No.12 of 2016] 15
21. (1) The Government may, by notification in the Gazette,
make rules to carry out all or any the provisions of this Act.
(2) Every rule made under this Act shall immediately
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 session s and if, before the expiration of the
session in which it is so laid or the session immediately
following, the Legislature of the State agrees in making any
modification in the rule or in the annulment of the rule, the
rule shall, from the date on which th e modification or
annulment is notified, have effect only in such modified form
or shall stand annulled as the case may be, so however, that
any such modification or annulment shall be without
prejudice to the validity of anything previously done under
that rule.
* * *
Power to make
rules.