LexThe UNITED PROVINCES DEBT REDEMPTION ACT, 1940
Uttar Pradesh · state statute
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THE UNITED PROVINCES DEBT REDEMPTION
ACT, 1940
(U.P. Act No. XIII of 1940 )
520
THE UNITED PROVINCES DEBT REDEMPTION ACT, 1940
(U. P. Act No. XIII of 1940)1
Amended by
United Provinces Act No. VI of 1941
United Provinces Act No. VI of 1942
Adapted and modified by the Adaptation of Laws Order, 1950
[Received the assent of the Governor General on December 21,
1940, and was publishe d in the United Provinces Government
Gazette, on December 28, 1940.]1
An Act to provide for further relief from indebted ness to
agriculturists and workmen.
Whereas it is expedient to for further relief from indebtedness
to agriculturists and workmen in the United Provinces ;
And whereas by the Proclamation, dated the third day of
November, 1939 2, promulgated under sectio n 93 of the Government
of India Act, 1935, the Governor of the United Provinces has assumed
to himself all powers vested by or under the aforesaid Act in the
Provincial Legislature ;
And whereas the continuance in force of the said
Proclamation has been approved by a resolution of both Houses of
Parliament ;
Now, therefore, the Governor in exercise of the powers
aforesaid is pleased to make the following Act ;
CHAPTER–I
PRELIMINARY
Short title,
extent and
commencement
1. (1) This Act may be called the United Provinces Debt
Redemption Act, 1940.
(2) It extends 3 to the whole of [ Uttar Pradesh ] 4 except the
Jaunsar Bawar paragana of the Dehra Dun district and the portion of
the Mirzapur district south of the Kaimur Range.
(3) It shall come into force on such date5 as the Governor may,
by notification in the Official Gazette, appoint.
——————————————————————————————————————————
1. This Act was made by the Governor in exercise of the powers assumed by him by the Proclamation. D.
Nov. 3, 1939, issued under Sec. 93 of the G. of I. Act, 1935, and was published, with S. O. R. in Gaz,.
1942. Pt. VII-A. pp. 7-8. It was re-enacted and continued by s. 2 and Sch. of U. P. Act XIII of 1948.
2. See Gaz., Extra., d Nov. 3, 1939.
3. This act has been extended to the portion of the Mirzapur District, lying south of the Kaimur rang, see not
no. 93/I-134-43. d, Aug. 24, 1945. pt. I, P.268. The Act has also been extended to the merged States of
Rampur, Banaras and Tehri-Garhwal by the Rampur (Application of Laws) Act, 1950 and the Banaras and
Tehri-Garhwal Application of Laws) Orders, 1949, respectively.
4. Subs. by the A. O. 1950 for (the United Provinces).
5. The Act came into force on January 1, 1941, see notification no. 158 (1)/1-39 at December 13, 1940,
published in Gazette on December 28, 1940, Pt. 1., P. 822
[The United Provinces Debt Redemption Act, 1940]
521
2. In this Act unless there is anything repugnant in the subject
or context —
(1) subject to the provisions of the following sub -section, all
words and expression which are def ined or explained in the United
Provinces Land Revenue Act 1901, or the United Provinces Tenancy
Act, 1939, shall have the meaning assigned to them therein ;
Interpretation
(2) “agricultural produce” means the agricultural produce of an
agriculturist r aised by him or by his servants or by labour hired by
him and includes crops, whether standing or gathered, and the fruit
and flowers of trees and plants ;
(3) “agriculturist” means a proprietor of a mahal or of a share in
or portion of a mahal or a tenant ;
Provided that no such proprietor or tenant shall be deemed to
be an agriculturist if —
(a) the aggregate of the rent, if any, and of ten times the
local rate, if any, payable by him exceeds one thousand rupees,
or
(b) he is assessed to income -tax under the Indian Income -
tax Act, 1922 or under the income-tax law of an Indian State ;
Provided further that no person shall be deemed to be a
proprietor or tenant merely by reason of his having acquired
proprietary or tenancy rights, otherwise than by i nheritance or
survivorship, after the first day of June, 1940.
Explanation I — Where a proprietor or a tenant has a
subsisting interest in land, but by a reason of a temporary transfer
does not for the time being pay the rent or local rate payable in respect
of that land, such rent or local rate shall, for the purposes of this sub -
section, be deemed to be payable by him.
Explanation II — If on account of a fall in the price of
agricultural produce a temporary remission has been made in the land
revenue payable by a proprietor or in the rent payable by a tenant, the
local rate payable by such proprietor shall, for the purposes of this
sub-section be deemed to have been reduced in the same proportion
as the land revenue and the rent payable by such tenan t shall be
deemed to be the rent as reduced by such temporary remission in
rent.
(4) “bank” means a company which carries on the business of
banking and was before the first day of June, 1940, registered under
any of the enactments relating to companies for the time being in force
(in India or) 1 in the United Kingdom or in any of the colonies or
dependencies thereof [ * * * ] 2 or incorporated by an Act of Parliament
(of the United kingdom) 3 or by Royal Charter or Letters Patent or by
(Central Act)4 ;
——————————————————————————————————————————
1. Ins. by the A. O. 1950.
2. The words (or in British India or in any Indian State) omit, by ibid.
3. Ins. by ibid.
4. Subs. by ibid the Central Legislature.
[The United Provinces Debt Redemption Act, 1940]
522
(5) “co -operative society” means a society registered or
deemed to be registered under the provisions of the Co -operative
Societies Act, 1912 ;
(6) “decree to which this Act applies” means a decree passed
either before or after the commencement of this Act in a suit to which
this Act applies ;
(7) “interest” means the return to be made over and above
what was actually advanced, whether the same is charged or sought
to be recovered specially by way of interest, or usufruct or service to
be rendered or otherwise ;
(8) “land” means land in a mahal in [Uttar Pradesh)]1 but does
not include land occupied by buildings or appurtenant thereto or
land within the limits of any municipality, cantonment or notified
area ;
(9) “loan” means an advance in cash or ki nd made before the
first day of June, 1940 ; recoverable from an agriculturist or a
workman or from any such person and other persons jointly or from
the property of an agriculturist or workman and includes any
transaction which in substance amounts to suc h advance, but does
not include an advance the liability for the repayment of which has
by a contract with the borrower or his heir or successor or by sale in
execution of a decree been transferred to another person o r an
advance by the Central or [State Government]2 or by a local authority
authorized by the [ State Government]2 to make advances or by a co -
operative society or by a scheduled bank ;
Provided that an advance recoverable from an agriculturist or
from an agriculturist and other persons joint ly shall not be deemed
to be a loan for the purposes of this Act unless such advance was
made to an agriculturist or to and agriculturist and other persons
jointly.
3[(10) “local rate” means the rate, which under the United
Provinces Local Rates Act, 1 914, is payable by, or recoverable from
an agriculturist possessing heritable and transferable rights ],
(11) “prescribed” means prescribed by this Act or by rules
made thereunder ;
(12) “principal” means the amount originally advanced ;
(13) “proprietor” includes a superior proprietor and an inferior
proprietor but does not include a mortgagee or in Agra a superior
proprietor to whom the provisions of section 77 of the United
Provinces Land Revenue Act, 1901, apply ;
(14) “rent” does not include sayar ;
——————————————————————————————————————————
1. Subs. by the A. O. 1950 (the United Provinces.)
2. Subs. by the A. O. 1950 for (Provl. Govt.)
3. Subs. by s. 2 of U. P. Ac t VI of 1942, made by the Governor in exercise of the powers assumed by him
under s. 93 of the G. of I. Act, 1935, for the following ;
(10) “local rate” means the rate payable by, or recoverable from, a proprietor under the provisions of the U.
P. Local Rates Act, 1914.’ It was re-enacted and continued by s. 2 and Sch. of U. P. Act XIII of 1948.
[The United Provinces Debt Redemption Act, 1940]
523
(15) “scheduled bank” means any bank included at the
commencement of this Act in the Second Schedule to the Reserve Bank
of India Act, 1934 ;
(16) “secured loan” means a loan the repayment of which has
been secured by a mortgage of or charge on specific property, or by a
pledge ;
(17) “Suit to which this Act applies” means any suit or
proceeding relating to a loan, but does not include proceedings under
the provisions of the United Provinces Encumbered Estates Act, 1934 ;
(18) “tenant” includes a pers on entered in the register
maintained under the provisions of clause (b) or clause (c) of section 32
of the United Provinces Land Revenue Act, 1901, a rent -free grantee at a
favorable rate of rent and a sub -tenant but does not include a grove
holder or a thekadar ;
(19) “unsecured loan” means a loan which is not a secured loan;
(20) “workman” means a person who is not a proprietor or a
tenant and —
(a) who earned wages within the meaning of sub -section (vi)
of section 2 of the Payment of Wages Act, 1936, within the twelve
months preceding the first day of June, 1940, which did not
exceed Rs. 600 in the said twelve months and did not exceed
Rs. 60 in any such month, or
(b) who does not ordinarily reside within a municipality,
cantonment or notifie d area and who belongs to one of the
classes specified in the first Schedule.
3. For the purposes of this Act —
(a) in any proceeding relating to an advance, pending when
this Act comes into force or instituted thereafter, the status of
the debtor who i s a party to such proceeding shall be deemed to
be the status which he had, at the commencement of the Act, or
on the date of the institution of the proceedings, as the case may
be ;
Explanation
(b) rent which has been remitted or suspended e ither in
whole or in part, on account of a failure of the crop shall be
deemed to be payable in the year in which it was so remitted or
suspended ;
(c) local rate in respect of which a notification of exemption
has been issued under the provisions of section 15 of the United
Provinces Local Rates Act, 1914 shall be deemed to be payable ;
(d) a joint proprietor or a joint tenant shall be deemed to be
the proprietor or tenant of so much of the joint property or joint
tenancy, not being the property or tenancy, as th e case may be,
of a joint Hindu family, as appertains to his share ;
[The United Provinces Debt Redemption Act, 1940]
524
(e) where the aggregate of the rent and ten times the local
rate, if any, payable by a joint Hindu family —
(i) does not exceed one thousand rupees, such family and
every member of it shall be deemed to be an agriculturist ;
(ii) exceeds one thousand rupees, a member of such family
shall be deemed to be an agriculturist only if the aggregate of
the rent and ten times the local rate payable in respect of his
share and the shares of hi s male lineal ascendants and
descendants in the joint family property, does not exceed one
thousand rupees :
Provided that no joint Hindu family or any member of it shall be
deemed to be an agriculturist if such family or member is assessed to
income-tax, or in the case of a member of such family if the aggregate
of the rent and ten times the local rate payable in respect of such
member’s share and the shares of his male lineal ascendants and
descendants in the joint family property and in respect of hi s self -
acquired property , if any, exceeds one thousand rupees ;
(f) a loan shall not be deemed to be due jointly from an
agriculturist or workman and another person if such other
person’s liability in connexion with such loan is that of a surely
and such person and such agriculturist or workman shall not
be deemed to be joint debtors.
Cases in
which
provisions of
the Act shall
not apply.
4. (1) The provisions of this Act shall not apply to a suit for the
recovery of a loan from an agriculturist where t he creditor declares in
accordance with the provisions of sub -section (2) that if a decree is
passed in his favour either for the whole or part of the claim such
decree shall not be executed against the land, agricultural produce or
person of such agriculturist.
(2) The declaration mentioned in sub -section (1) shall in the
case of a suit pending at the commencement of this Act, be made at
any time before the decision of the suit and in the case of a suit
instituted after the commencement of this Act, in the plaint.
(3) No decree recoverable from an agriculturist shall be
amended under the provisions of this Act if the creditor declares that
such decree shall not be executed against the land, agricultural
produce or person of such agriculturist :
Provided that no such declaration shall be made in a suit or
proceeding relating to a loan recoverable from an agriculturist who also
belongs to one of the classes specified in clause (a) or clause (b) o f sub-
section 20 of section 2 ;
Provided further that where in a suit decided after the
commencement of this Act the creditor has had an opportunity of
making the declaration required by sub -section (1) no declaration
shall, in proceedings for the execution of a decree obtained by the
creditor in such suit b e made by the decree -holder under
sub-section (3) ;
[The United Provinces Debt Redemption Act, 1940]
525
Provided also that no declaration shall be made under sub -
section (3), where the creditor has already applied for execution
against the land, agricultural produce or person of such agriculturist.
(4) Where a declaration has been made under the provisions of
this section no order shall be made for the execution of the decree
against the land, agricultural produce or person of the agriculturist in
respect of whom the declaration was made or his heir or successor,
and the court shall record a direction to this effect in the decree.
CHAPTER–II
SUITS AND DECREES ON LOANS
5. Where causes of action in respect of a loan and in respect
of an advance in cash or kind made on or after the first day of June,
1940, have been joined in one suit, the court shall order separate
trials in respect of the claim based on such loan and in respect of
that based on such advance.
Separate trials
6. Notwithstanding anything contained in any other
enactment for the time being in force, every suit to which this Act
applies shall be instituted in a court within the local limits of the
jurisdiction of which—
Form of suits
(a) the defendant or, if there are more than one, any of
the defendants ordinarily resides ; or
(b) in case the defendant or, if there are more than one,
all the defendants, reside without the limits of [Uttar
Pradesh]1 ;
(i) the holding or the land of the defendant or, if there are
more than one, of any of the defendants is situate ; or
(ii) the defendant or , if there are more than one, any of
the defendants carries on the trade or profession by virtue of
which he is a workmen.
7. Notwithstanding the terms of any, contract regarding the
date or dates on which a loan shall become due, a suit to which this
Act applies for the redemption of a mortgage or for accounts may be
instituted by a debtor at any time after the commencement of
this Act.
Debtors right
to sue.
8. Notwithstanding the provisions of any decree or of any law
for the time being in force, an agriculturist or workman liable to pay
the amount due under a decree to which this Act applies passed
before the commencement of this Act, may apply to the civil court
which passes the decree or to which the execution of the decree has
been transferred, f or the amendment of the decree by reduction
according to the provisions of this Act of the amount due under it,
and on receipt of such application the court shall, after notice to the
opposite party, calculate the amount due from the applicant in
accordance with the provisions of sections 9 and 10 and shal l amend
the decree accordingly:
Amendment of
decrees.
——————————————————————————————————————————
1. Subs. by the A. O. 1950 for [the United Provinces].
[The United Provinces Debt Redemption Act, 1940]
526
Provided that if the decree was passed by a court outside [Uttar
Pradesh]1, it shall not be executed against the land or agricultural
produce or per son of the judgment -debtor unless the decree -holder
agrees to an amendment of the decree in accordance with the
provisions of this Act.
(2) A decree amended under the provisions of sub -section (1)
shall be deemed to bear the date of the original decree.
(3) In amending a decree under the provisions of this section
the court shall accept the findings on which the decree was based
except in so far as they are inconsistent with the provisions of section 9.
Accounting
and determi -
nation of the
amount due
9. (1) In a suit to which this Act applies or in amending a decree
under the provisions of section 8, the court shall, notwithstanding
anything to the contrary in any law, decree or contract or in any
agreement purporting to close part transactions, determi ne the
principal and take into account all sums paid by or on behalf of the
debtor and in the case of a mortgage with possession , the net profit
realized by the mortgagee or which with the exercise of ordinary
diligence might have been realized by him, and shall determine the
amount, if any, due by the debtor in accordance with the provisions of
the following sub-sections :
Provided that for the purpose of determining the principal, the
court shall treat as principal any accumulated interest which has bee n
converted into principal any statement or settlement of account or by
any contract in the course of the transaction before the first day of
January, 1917, but shall treat as interest any accumulated interest
which has been converted as aforesaid at any s uch statement,
settlement or contract made on or after that date.
(2) The amount due by the debtor shall not e xceed the amount
that would have been due if the rate of interest had been, in the case of
a secured loan, four and a half percent, per annum simple interest,
and in the case of an unsecured loan six per cent. per annum simple
interest.
(3) The amount due b y the debtor as interest shall n ot exceed
the amount of the principal outstanding on the date on which t he
amount due by the debtor is determined.
(4) Nothing in this section shall entitle the debtor to a refund of
any sum already paid by him.
Rate of
interest on
decrees
10. (1) Notwithstanding anything contained in section 34 of the
Code of Civil Procedure, 1908, the court shall not order future interest
on the aggregate sum adjudged in a decree to which this Act applies or
in a decree amended under the provisions of this Act, at a rate
exceeding three percent. per annum simple interest.
(2) If in a decree to be amended under the provisions of this Act
a higher rate of future interest has been allowed by the court passing
the decree such rate shall, with effect from the date of the decree, be
reduced to a rate permitted by the provisions of sub -section (1) and the
decree shall be amended accordingly.
——————————————————————————————————————————
1. Subs. by the A.O. 1950 for (the United Provinces).
[The United Provinces Debt Redemption Act, 1940]
527
(3) When a decree is executed by the grant of a mortgage
under the second proviso to sub -section (1) of section 17, then,
notwithstanding a different rate in the decree, the rate of interest
shall from the date when such mortgage i s granted, be deemed to be
three per cent. per annum.
11. In any proceeding relating to a loan due jointly form
several persons any of who m is an agriculturist or a workman the
court shall apportion the loan between the joint debtors and the
provisions of this Act shall apply only to that part of the loan which is
apportioned to the joint debtor who is an agriculturist or a workman.
Apportionment
of loans.
12. Nothing in this Act shall prevent the institution of a suit
for the recovery of a loan agains t a surety jointly with the debtor or
separately, as the case may be, but no decree shall be passed in such
suit against a surety for an amount in excess of that for which a
decree would have been passed against the agriculturist or workman
from whom the loan is recoverable.
Suits against
sureties.
CHAPTER–III
EXECUTION OF DECREES
13. (1) The provisions of this chapter shall not apply to the
execution of a decree based on a loan advanced by a bank.
(2) The provisions of sections 16 and 17 shall not apply to the
hill pattis of the Kumaun Division.
Exemption and
extensions.
(3) In areas to which the Bundelkhand Alienation of Land Act,
1903, extends the provisions of sections 16 to (18) 1 shall not apply to
the land of a member of a tribe which by virtue o f a notification
issued under section 4 of that Act is deemed to be an agricultural
tribe for the purposes of that Act.
2[Provided that in such areas a member of such tribe who has
made an application under section 4 of the United Provinces
Encumbered Estates Act, 1934, shall, notwithstanding the provisions
of section 39 of that Act, be entitled to the benefit of section 19 as if
this sub -section did not bar the application of the provisions of
section 17 to his land.]
(4) For the purposes of sections 16 to 19 the expressions
“agriculturist” “loan” and “decree to which this Act applies” shall be
interpreted as if the first proviso to sub -section (3) of section 2 were
omitted.
14. Notwithstanding anything in the Code of Civil Procedure,
1908, not more than one -third of the agricultural produce of a
judgment-debtor shall be liable to attachment in execution of any
decree or decrees to which this Act applies.
Attachment of
agricultural
produce
restricted.
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1. Subs. for ’19’ by s. 2 (a) of U. P. Act VI of 1941, made by the Governor in exercise of the powers assumed
by him under s. 93 of the G. of I. Act, 1935.
2. Add. by s. 2 (b) of ibid.
[The United Provinces Debt Redemption Act, 1940]
528
Limitation
for execution
of decree
against
agricultural
produce.
15. (1) Notwithstanding anything in the Code of Civil
Procedure, 1908, no order shall be made for the execution of a decree
to which this Act applies against the agricultural produce of a
judgment-debtor after the expiration of si x years, in the case of such
decrees passed before the commencement of this Act, from the date of
such commencement, and in the case such decrees passed after the
commencement of this Act, from the date of the decree, or where the
decree directs any payment of money to be made at a certain date or at
recurring intervals, from the date of default in making the payment in
respect of which the decree-holder seeks to execute the decree :
Provided that nothing in this sub -section sh all be deemed to
authorize the exec ution of a dec ree to which this Act applies against
the agricultural produce of a judgment -debtor if such execution would
have been barred by the provisions of section 6 of the United Provinces
Agriculturists Relief Act, 1934, had the said section been in force at
the date of such execution.
(2) Nothing in this section shall be deemed to extend the period
of limitation for an application for the execution of a decree.
Execution of
decree
against land
16. (1) Notwithstanding anything in the Code of Civi l
Procedure. Act V of 1908, when the land of an agriculturist is sought
to be sold in execution of a decree to which this Act applies the court
executing the decree shall proceed in accordance with the provisions of
the following sub-sections :
Provided that if at any time before such land is transferred in
accordance with the provisions of this section, such agriculturist
applies in writing to the court executing the decree stating that he
desires to have the land put to sale, the court shall sell it in
accordance with the provisions of the Code of Civil procedure, 1908.
(2) Where such decree is based on a loan made before the first
day of January, 1931, or where it is based on a series of transaction
any of which took place before that date, the court shall, in accordance
with rules made by the [ State Government ] 1 determine the annual
value of such land in the agricultural year 1337 Fasli and in the
agricultural year in which the decree is sought to be executed by sale
and shall calculate the value of s uch land by multiplying whichever of
these annual values is the greater by the prescribed multiple.
(3) In the case of any other decree to which this Act applies the
court shall in accordance with rules made by the (State Government ) 1
determine the annu al value of such land in the year in which the
decree is south to be executed by sale and shall calculate the value of
such land by multiplying the annual values by the prescribed multiple.
(4) If the value so determined is less than or equal to the
amount of such decree together with the proportionate amount of any
prior encumbrance, the court shall transfer such land to the decree -
holder.
——————————————————————————————————————————
1. Subs. by the A. O. 1950 for provincial Government.
[The United Provinces Debt Redemption Act, 1940]
529
(5) If the value so determined is greater than the amount of
such decree together with the proportionate amoun t of any prior
encumbrance, the court shall determine the portion of such land the
value of which determined in accordance with the provisions of sub -
section (2), or sub -section (3) is equal to the amount of the decree
together with the proportionate amoun t of such prior encumbrance
and shall transfer such portion to the decree-holder.
(6) When land so transferred under the provisions of this
section the decree shall be deemed to be satisfied up to the value of
such land as determined under the provisi ons of this section and all
the rights of the agriculturist in such land shall be deemed to have
been sold to the decree- holder.
17. (1) Notwithstanding anything contained in section 16 or in
and other law for the time being in force —
(a) the land of an agriculturist, the local rate payable by
whom or recoverable from whom does not exceed twenty -five
rupees per annum, shall not be sold or otherwise transferred
in execution of a decree to whi ch this Act applies, nor shall a
final decree for foreclosur e be passed in respect of such land,
and
Protection of
certain land
from sale or
transfer
(b) in the case of any other agriculturist —
(i) only so much of his land may be sold or otherwise
transferred in execution of a decree to which this Act applies ;
or
(ii) a final decree for foreclosure may be passed in respect
of only so much of his land, as would, after such sale or
transfer or foreclosure leave with him land the local rate
payable in respect of which would be at least rupees twenty -
five per annum :
Provided that in the permanently settled areas of the Benares
Division and the Azamgarh District the local rate on the
agriculturist’s land shall, for the purposes of this section, be deemed
to be twice the local rate actually payable on it ;
1[(Provided further that in Oudh the local rate recoverable
from an under-proprietor shall , for the purposes of this section, be
deemed to be the local rate payable by the superior -proprietor as
such) ;
Provided [also]2 that the court may execute a decre e to which
this Act applies by granting to the decree -holder a self -liquidating
usufructuary mortgage, for a period of not more than twenty years, of
such land as is protected from sale, transfer or foreclosure by the
provisions of this section ;
——————————————————————————————————————————
1. Ins. by s. 3 of U. P. Act VI of 1942, made by the Governor in exercise of the powers assumed by him under
sec. 93 of the G. of I Act, 1935. It was reenacted and continued by U. P. Act XIII of 1948.
2. Subs. for [further] by ibid.
[The United Provinces Debt Redemption Act, 1940]
530
Provided also that when a mortgage has been granted under
the provisions of this section the same land shall not be mortgaged in
execution of any other decree to which this Act applies against the
same debtor or his heir or successor if the term of the mortgage
together with the term or terms of previous mortgage or mortgages
exceed twenty years.
(2) The form, terms and conditions of a mortgage granted
under the second proviso to sub -section (1) and the amount to be
paid by the debtor at any time for the redem ption of such mortgage
shall be such as may be prescribed.
Procedure
where several
decrees are
executed
simultaneously
18. Where several persons holding decrees to which this Act
applies move the court, before it has granted a mortgage -under
section 17, f or execution of their decrees by grant of a mortgage of
land protected under that section, the court shall, subject to the
provisions of that section, observe the following principles in
executing the decrees.
(a) If any such decree is based on a loan t he payment of
which is already secured by a mortgage of the whole or part of
the land so protected (hereinafter described as a secured
decree) the holder of such decree shall first be granted a
mortgage of the protected land already mortgaged to him, and
the holder of a decree based on an unsecured loan (hereinafter
described as an unsecured decree) shall be granted a mortgage
of the remaining protected land, if any.
(b) Where there are more than one secured decrees and
also unsecured decrees —
(i) and di fferent portions of the protected land are
mortgaged in the secured decrees, the holder of each such
decree shall be granted a mortgage of the portion which is
already mortgaged to him ;
(ii) and the same protected land is mortgaged in more
than one decr ee, mortgages shall be granted to the holders of
such decrees in order of their priority ;
(iii) and if after grant of mortgages under sub -clause (i)
and (ii) there remains any protected land free from such
mortgages, the holders of the unsecured decrees shall be
granted mortgaged thereof.
(c) As among persons holding unsecured decrees, such
persons shall each be granted simultaneously mortgages of
ratable shares of the land in such manner as may be
prescribed.
Application to
U. P.
Encumbered
Estates Act
1934.
19. The land of an agriculturist which by the provisions of
clauses (a) and (b) of sub -section (1) of section17, would be protected
from sale in execution of a decree to which this Act applies shall in
proceedings under the United Provinces Encu mbered Estates Act,
1934, be deemed to be protected land as defined in that Act.
[The United Provinces Debt Redemption Act, 1940]
531
20. (1) When land is transferred in accordance with the
provisions of section 16 such transfer shall for the purposes of section
89 of the Indian Registration Act, 1908, be deemed to be a sale of
immovable property. The court shall grant a certificate of transfer for
which the decree -holder shall pay stamp duty according to the
valuation of the land so transferred.
(2) When a decree is executed by the grant of a mortgage un der
the provisions of the second proviso to sub -section (1) of section 17,
the court shall grant a certificate of mortgage with such particulars as
may be prescribed and shall follow the procedure laid down in sub -
section (2) of section 89 of the Indian Re gistration Act, 1908, as if such
certificate was a certificate of sale of immovable property and the
registering officer shall file the co py of the certificate in his Book no. 1.
Such certificate of mortgage shall be exempt from stamp duty.
Court to grant
certificates of
transfer or
mortgage in
cases of
transfer or
mortgage, as
the case may
be, of debtors’
property in
execution of
decree
21. Notwithstanding anything contained in rule 6 or rule 8 -A of
Order XXXIV of the First Schedule of the Code of Civil Procedure, 1908,
where in a suit based on a loan secured by a first mortgage a decree for
sale has been executed and the net proceeds of the sale of the
mortgaged property are found insufficient to pay the amount due to the
plaintiff or to the defendant, as the case maybe, no decree shall be
passed for the balance due to such plaintiff or defendant, as the case
may be, and if any decree for such balance has been passed before the
commencement of this Act, it shall be deemed to have been satisfied.
Decree on the
basis of a first
mortgage to
be satisfied
by the sale of
mortgaged
property.
22. No decree to which this Act applies shall be executed by the
transfer of trees belonging to an agriculturist unless the land on which
such trees stand is also transferred :
Provided that nothing in this section shall be deemed to prohibit
the execution of a decree by the sale of the interest of a grove-holder.
Trees
protected
from sale.
23. No decree to which this Act applies shall be executed by the
arrest and deten tion of the judgment -debtor unless the court is
satisfied that such debtor has alienated or removed or concealed any of
his property with the intention to defeat or delay the execution of such
decree.
Decree to be
executed by
arrest and
detention of
judgment
debtor.
CHAPTER–IV
MISCELLANEOUS
24. The provisions of the Code of Civil Procedure, 1908, save in
so far as they are inconsistent with the provisions of this Act, shall
apply to all proceedings under this Act.
Application of
the Code of
Civil
Procedure,
1908
25. (1) Notwithstanding anything in the United Provinces Village
Panchayat Act, 1920, no suit to which this Act applies shall be
instituted before a panchayat establish under the provisions of that Act
and if at the commencement of this Act an y such suit is pending before
a panchayat so established, it shall forthwith be transferred to the
court which, but for such panchayat, would have jurisdiction.
Jurisdiction
of panchayat
barred.
[The United Provinces Debt Redemption Act, 1940]
532
(2) The provision of section 8 shall apply to decrees pas sed by a
panchayat so established as if for the words “civil court which passed
the decree or to which the execution of the decree has been
transferred”, in that section the words “court of the Tahsildar” were
substituted.
Power to
make rules
26. The [ State Government ]1 may make rules 2 consistent with
this Act for carrying out the purposes of this Act.
Repeal and
amendments
27. (1) The enactments mentioned in the Second Schedule are
hereby repealed to the extent mentioned in the fourth column thereof.
(2) In section 33 of the United Provinces Agriculturists’ Relief
Act, 1934 —
(a) in sub -section (2) for the words “follow the provisions
of Chapter IV of this Act and the provisions of the Usurious
Loans Act, 1918,” the words “allow only such interest a s may
be permissible under the law applicable to the agriculturist
debtor” shall be substituted ; and
(b) Sub-section (4) shall be omitted.
THE FIRST SCHEDULE
(See sub-section (20) of section 2)
Agricultural laborers, bangle -makers, barbers, basket -makers, blacksmiths,
boatmen, carders, carpenters, copper -smiths, cowherds, dairymen, fishers, general
laborers, goat herds, hunters, leather -workers, masons, midwives, potters,
scavengers, stonecutters, tailors, tanners, washermen, watchmen, water -carrier,
weavers or other servants of the village community ; or any sim ilar class of person
which the [State Government]1 may, by notification in the official Gazette, form time,
include in this Schedule.
——————————————————————————————————————————
1. Subs. by the A. O. 1950 for (Provincial Government).
2. For rules, see nos. no. 438/I—39, d. July 14, 1941, in Gaz. 1941. Pt. I:A, pp. 229 —933, no. 2675/I—58—
41, d. Nov. 24, 1941, Pt. I–A, p 363 (ii) I—95—42-(1). D. March 7, 1942 Pt. I—A, p. 8, no. 1167/I—95—45,
d. Sept. 24, 1946, in Gaz., 1946. Pt. I—A, p. 54 A.
[The United Provinces Debt Redemption Act, 1940]
533
THE SECOND SCHEDULE
(See section 27)
Year No. Short title Extent of repeal
1934
1937
XXVII
X
The United Provinces
Agriculturists Relief Act,
1934.
The United Provinces
Temporary
Postponement of
Execution of Decrees
Act, 1937.
(a) Sections 3 to 8, 28 to 31, 37, 38, 40
to 42 and Schedule I to Schedule
V, except in their application to
advances made before the first day
of June, 1940 not being loans as
defined in this Act.
(b) Section 9 to 27, except in their
application to mortgages ma de
before the commencement of this
Act.
The whole.