The West Bengal Employment Scheme Loans ( Recovery ) Act, 1976

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act III of 1976 
THE WEST BENGAL EMPLOYMENT SCHEME 
LOANS (RECOVERY) ACT, 1976. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta 
Gazette, Extraordinary, of the 23rd March, 1976.] 
[23rd March, 1976.] 
An Act to provide for recovery, as public demands, of loans advanced by 
banks and otherfinancial institutions to educated unemployed persons 
in West Bengal under schemes framed by the Government of West 
Bengal under its Additional Employment Programme for providing 
employment to such persons. 
WHEREAS it is expedient to provide for recovery, as public demands, of 
loans advanced by banks and other financial institutions to educated 
unemployed persons in West Bengal under schemes framed by the 
Government of West Bengal under its Additional Employment 
Programme for providing employment to such persons; 
It is hereby enacted in the Twenty-seventh Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Employment Scheme 
Loans (Recovery) Act, 1976. 
(2) It extends to the whole of West Bengal. 
2. In this Act, unless there is anything repugnant in the subject or Definitions. context,— 
(a) "Additional Employment Programme" means a programme 
of the State Government to provide self employment 
opportunities to educated unemployed persons in West 
Bengal by assisting them to develop bankable projects and 
by supporting the projects by advancing margin money 
loans; 
(b) "bank" means and includes— 
(i) a 'bank' included in the Second Schedule to the 
	
2 of 1934. 	 Reserve Bank of India Act, 1934, 
(ii) the 'State Bank of India' constituted under the State 
	
23 of 1955. 	 Bank of India Act, 1955, 
7 
Short title 
and extent. 
The West Bengal Employment Scheme Loans (Recovery) 
Act, 1976. 
[West Ben. Act 
(Section 2.) 
(iii) a 'subsidiary bank' as defined in the State Bank of 38 of 1959. 
India (Subsidiary Banks) Act, 1959, 
(iv) a 'corresponding new bank' as defined in the 
Banking Companies (Acquisition and Transfer of 5 of 1970. 
Undertakings) Act, 1970, 
(v) a 'co-operative bank' as defined in the Reserve Bank 2 of 1934. 
of India Act, 1934; 
(c) "Certificate Officer" has the same meaning as in clause (3) 
of section 3 of the Bengal Public Demands Recovery Act, Ben. Act Ill 
of 1913. 
1913; 
(d) "entrepreneur" means a person or a group of persons or a 
partnership firm or a limited company, either private or 
public, or a co-operative society registered under the West West Ben. 
Act 
Bengal Co-operative Societies Act, 1973, to whom financial xxxvili of 
assistance has been given by the State Government and by 1973. 
a bank or a financial institution in terms of a scheme and 
includes the legal heirs, executors, administrators, 
representatives and assignees of such person or persons or 
partnership firm or limited company or co-operative society, 
as the case may be; 
(e) "financial institution" means— 
(i) a company or a body corporate as defined in the 
Companies Act, 1956, or 	 1 of 1956. 
(ii) a financial corporation, or 
(iii) a society registered under the West Bengal Societies 
Registration Act, 1961, 
which is engaged in financing activities and has been 
constituted by any law for the time being in force and which 
is either owned by, or in which the majority shares are held 
by, the State Government; 
(f) "margin money loan" means a loan advanced by the State 
Government under a scheme to an entrepreneur to meet the 
whole or a part of the initial investment to be made by him 
for obtaining the financial assistance from a bank or a 
financial institution for any project under the Additional 
Employment Programme; 
(g) "prescribed" means prescribed by rules made under this 
Act; 
West Ben. 
Act XXVI 
of 1961. 
8 
The West Bengal Employntent Scheme Loans (Recovery) 
Act, 1976. 
III of 1976.1 
(Sections 3-6.) 
(h) "scheme" means a scheme framed by the State Government 
under its Additional Employment Programme for providing 
employment to unemployed educated persons in West 
Bengal under which such persons shall arrange to secure an 
advance from a bank or any other financial institution 
representing up to ninety per cent. of the total amount 
required for any project under the said Programme; 
"term loan" means a loan advanced by a bank or a financial 
institution to an entrepreneur against the block capital or 
fixed assets of the activities under a scheme. 
Ben. Act 111 
of 1913. 
3. Notwithstanding anything contained in any law for the time 
being in force or in any agreement, any amount due to a bank or a 
financial institution from an entrepreneur in respect of the term loan 
shall, apart from any other mode of recovery, be recoverable as an arrear 
of land revenue under the Bengal Public Demands Recovery Act, 1913. 
Explanation.—The provisions of this section shall also apply to 
any amount advanced by way of term loan before the date on which this 
Act comes into force and remaining unpaid on such day. 
4. Notwithstanding anything contained in the Bengal Public 
Demands Recovery Act, 1913, no appeal under section 51 of the Bengal 
Public Demands Recovery Act, 1913, against an order made by a 
Certificate Officer for recovery of any term loan as a public demand shall 
be admitted by the appellate authority unless the appellant deposits either 
twenty-five per cent. of the dues of the certificate or the amount admitted 
by the appellant to be due, whichever is higher. 
Recovery of 
arrears of 
term loan as 
a public 
demand. 
Act to 
override the 
Bengal 
Public 
Demands 
Recovery 
Act, 1913 in 
certain 
cases. 
West Ben. 
Ord. VI of 
1976. 
5. The State Government may, by notification in the Official Power to 
Gazette, make rules for carrying out the purposes of this Act. 	 make rules.  
6. (1) The West Bengal Employment Scheme Loans (Recovery) Repeal and 
Ordinance, 1976, is hereby repealed. 	 savings. 
(2) Anything done or any action taken under the West Bengal 
Employment Scheme Loans (Recovery) Ordinance, 1976, shall be deemed 
to have been validly done or taken under this Act as if this Act had 
commenced on the 3rd day of February, 1976. 
    
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(i) 

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