The West Bengal Employment Scheme Loans ( Recovery ) Act, 1992

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act XVIII of 1992 
THE WEST BENGAL EMPLOYMENT SCHEME 
LOANS (RECOVERY) ACT, 1992. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, 
Extraordininy, of the 10th September, 1992.] 
[10th September, 1992.] 
An Act to provide for the recovery, as public demand, of the loans 
advanced by banks, other financial institutions and the State 
Government to unemployed persons in West Bengal under employment 
programmes of the State Government for providing employment to 
such persons. 
WHEREAS it is expedient to provide for the recovery, as public demand, 
of the loans advanced by banks, other financial institutions and the 
State Government to the unemployed persons in West Bengal under 
employment programmes of the State Government for providing 
employment to such persons; 
It is hereby enacted in the Forty-third 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 Short title 
Loans (Recovery) Act, 1992. 	 and extent. 
(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) "bank" means and includes— 
(i) a "bank" nationalised by the Government of India and 
a "bank" included in the Second Schedule to the 
	
2 of 1934. 	 Reserve Bank of India Act, 1934, 
(ii) a "co-operative bank" as defined in the Reserve Bank 
of India Act, 1934, 
(iii) a "corresponding new bank" as defined in the Banking 
	
5 of 1970. 	 Companies (Acquisition and Transfer of Undertakings) 
Act, 1970, 
189 
The West Bengal Employment Scheme Loans (Recovery) Act, 1992. 
[West Ben. Act 
(Section 2.) 
(iv) the State Bank of India, constituted under the State 
Bank of India Act, 1955, 
(v) a "subsidiary bank" as defind in the State Bank of India 
(Subsidiary Banks) Act, 1959; 
(b) "Certificate-officer" has the same meaning as in clause (3) 
of section 3 of the Bengal Public Demands Recovery 
Act, 1913; 
(c) "composite loan" means a loan advanced by a bank or a 
financial institution to an .  entrepreneur against the block 
capital or working capital required for activities under a 
scheme; 
(d) "employment programme" means programmes variously 
described as Additional Employment Programme, Self 
Employment Scheme for the Registered Unemployed in West 
Bengal (SESRU), 1985 or any other scheme of the State 
Government as may be specified by the State Government 
by notification in the Official Gazette from time to time to 
provide opportunities to unemployed persons in West 
Bengal by assisting them to undertake bankable projects 
and by supporting the projects by advancing margin money 
assistance by way of loans or grants; 
(e) "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 Bengal Co-operative Societies Act, 1983, to whom 
financial assistance has been given by the State Government 
in the form of margin money as a loan or grant and by a 
bank or a financial institution in terms of the employment 
programme for providing employment to unemployed 
persons and includes the legal heirs, executors, adminis-
trators, representatives and assignees of such person 
or group of such persons or partnership firm or limited 
company or co-operative society, as the case may be; 
(1) "financial institution" means-- 
(i) a company or a body corporate or a public financial 
institution as defined in the Companies Act, 1956, or 
(ii) a financial corporation, or 
(iii) a society registered under the West Bengal Societies 
Registration Act, 1961, or 
23 of 1955. 
38 of 1959. 
Ben. Act III 
of 1913. 
West Ben. 
Act XLV of 
1983. 
1 of 1956. 
West Ben. 
Act XXVI of 
1961. 
190 
The West BengalEnzployment Scheme Loans (Recovery) Act, 1992. 
XVIII of 1992.] 
(Sections 3, 4.) 
West Ben. 
Act XLV of 
1983. 
(iv) a Co-operative Land Development Bank as defined in 
the West Bengal Co-operative Societies Act, 1983, 
which 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; 
(g) "margin money" means a loan or grant advanced by the 
State Government under a scheme to an entrepreneur to 
meet a part of the initial investment to be made by him for 
obtaining further financial assistance from a bank or a 
financial institution for any project for generating 
employment; 
(h) "prescribed" means prescribed by rules made under this Act; 
(i) "scheme" means a scheme framed by the State Government 
under any employment programme for providing 
employment to unemployed persons in West Bengal under 
which such persons shall arrange to secure an advance from 
a bank or any other financial institution; 
(j) "term loan" means a loan advanced by a bank or a 
financial institution to an entrepreneur against the 
block capital of fixed assets of the activities under a 
scheme. 
3. Notwithstanding anything contained in this Act or in any 
other law for the time being in force or in any agreement, any amount 
due to a bank or a financial institution or to the State Government 
from an entrepreneur in respect of any loan including margin-money 
loan shall, apart from any other mode of recovery, be recoverable as an 
Ben. Act III 	 arrear of land revenue under the Bengal Public Demands Recovery 
of 1913. 	 Act, 1913. 
Explanation.—The provisions of this section shall also apply to any 
amount advanced by way of any loan before the date on which this Act 
comes into force and remaining unpaid on such day. 
4. (1) 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 loan as a public demand shall be 
Recovery of 
arrears 
amount of 
loan as a 
public 
demand. 
Act to 
override the 
Bengal 
Public 
Demands 
Recovery 
Act, 1913, in 
certain cases. 
191 
The West Bengal Employment Scheme Loans (Recovery) Act, 1992. 
[West Ben. Act XVIII of 1992.] 
Power to 
make rules. 
Repeal and 
saving. 
(Sections 5, 6) 
admitted unless the appeal is filed within 30 days from the date of passing 
of the order to be appealed against and, in the case of an appeal by an 
entrepreneur, unless the appellant deposits either twenty-five per cent. 
of the dues of the certificate or the amount admitted by him to be due, 
whichever is higher. 
(2) The amount deposited under sub-section (1) shall be adjusted 
against the dues'of the certificate or the amount admitted by the appellant 
to be due, as the case may be, and the balance, if any, shall be refunded to 
the appellant in such manner as the appellate authority may direct. 
5. The State Government may, by notification in the Official 
Gazette, make rules for carrying out the purposes of this Act. 
6. (1) The West Bengal Employment Scheme Loans (Recovery) 
Act, 1976, is hereby repealed. 
(2) Notwithstanding such repal,— 
(a) anything duly done or suffered under the said Act, or 
(b) any right, privilege, obligation or liability acquired, accrued 
or incurred under the said Act, or 
(c) any investigation, legal proceeding or remedy, in respect of 
any such right, privilege, obligation or liability as aforesaid, 
shall not be affected and any such investigation, legal proceeding or 
remedy may be instituted, continued or enforced as if this Act had not 
been passed. 
West Ben. 
Act III of 
1976. 
192 

‹ Prev All West Bengal acts Next ›