The West Bengal Relief Of Rural Indebtedness Act, 1975

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XLVI of 1975 
THE WEST BENGAL RELIEF OF RURAL INDEBTEDNESS 
ACT, 1975. 
[Passed by the West Bengal Legislature.] 
[Assent of'the President was first published in the Calcutta Gazette, 
Extraordinary, of the 5th January, 1976.] 
[5th January, 1976.] 
An Act to provide for relief of rural indebtedness in 
West Bengal. 
WHEREAS it is expedient to provide for relief of rural indebtedness in 
West Bengal; 
It is hereby enacted in the Twenty-sixth Year of the Republic of 
India, by the Legislature of West Bengal, as follows:-- 
1. (1) This Act may be called the West Bengal Relief of Rural Short title, 
Indebtedness Act, 1975. 	 extent and  
commence- (2) It extends to the whole of West Bengal. 	 ment. 
(3) It Shall come into force in such areas and on such dates as the 
State Government may, by notification in the Official Gazette, appoint 
and different dates may be appointed for different areas. 
2. In this Act, unless there is anything repugnant in the subject or Di enfist 
n 	
- 
conte— 
to  
(a) "agriculture" includes horticulture and dairy farming, pisci-
culture, forestry, sericulture, bee-keeping, piggery, poultry 
farming and growing of fruits, vegetables and the like; 
(b) "agricultural labourer" means a person who follows any one 
or more of the following agricultural occupations in the 
capacity of a labourer on hire or exchange, whether paid in 
cash or in kind or partly in cash and partly in kind, namely:— 
(i) farming including cultivation and tillage of soil, 
(ii) dairy farming, 
(iii) production, cultivation, growing and harvesting of any 
horticultural commodity, 
215 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
[West Ben. Act 
(Section 2.) 
(iv) raising of livestock, bees or poultry, and 
(v) any practice performed on a farm as incidental to or in 
conjunction with farm operations (including any 
forestry or timbering operations) and preparation for 
market and delivery to storage or to market or to 
carriage for transportation of farm products; 
(c) "Appellate Officer" means an officer appointed under 
sub-section (1) of section 12; 
(d) "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 
also a person who normally earns his livelihood by practising 
craft either by his own labour or by the labour of the 
members of his family in the rural area; 
(e) "authority" means an officer appointed under section 3; 
(f) "bank" means a banking company as defined in clause (c) of 
section 5 of the Banking Regulation Act, 1949 and includes 10 of 1949. 
the State Bank of India constituted under the State Bank of 23 of 1955. 
India Act, 1955, a subsidiary bank as defined in the State 38 of 1959. 
Bank of India (Subsidiary Banks) Act, 1959, a corresponding 
new bank as defined in clause (d) of section 2 of the Banking 5 of 1970. 
Companies (Acquisition and Transfer of Undertakings) Act, 
1970, a banking institution notified by the Central 
Government under section 51 of the Banking Regulation Act, 
1949 and also includes any other financial institution which 
may be notified in this behalf by the State Government; 
(g) "Collector" includes any officer not below the rank of Deputy 
Collector appointed by the State Government to exercise all 
or any of the powers of a Collector under this Act; 
(h) "debt" includes all liabilities in cash or in kind incurred by a 
debtor on or before the first day of July, 1975, either 
voluntarily or by or under a decree or order of any court and 
which may be secured or unsecured and payable presently or 
in future, but does not include the following, namely:— 
(i) any rent due in respect of a property let out to a debtor, 
(ii) any liability arising out of a breach of trust, 
(iii) any liability for damages against a wrong-doer for any 
act of tort committed by him, 
216 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
XLVI of 1975.] 
(Section 2.) 
West Ben. 
Act X 
of 1956. 
Ben. Act III of 1913. 
(iv) any claim for wages or by way of remuneration for 
service'rendered, 
(v) any liablity for maintenance arising under an order of a 
court or otherwise, 
(vi) any sum due as the price of articles or goods sold, 
(vii) any share of the produce of land payable on account of 
land cultivated under the system known as adhi, barga 
or bhag, 
(viii) any mortgage by raiyat of his holdings or any share 
thereof under a usufructuary mortgage referred to in 
sub-section (1) of section 7 of the West Bengal Land 
Reforms Act, 1955, 
(ix) any sum recoverable as a public demand under the 
Bengal Public Demands Recovery Act, 1913, 
(x) any sum due to the Central or any State Government or 
a bank or a co-operative society or a local or statutory 
authority or the Life Insurance Corporation of India; 
Explanation L—Any liability incurred by a debtor on 
or after the first day of July, 1975, which is in fact a 
substitution of a liability previously incurred by him 
shall be deemed to be a debt within the meaning of this 
Act; 
Explanation IL—For the purposes of this Act, debt 
includes all kinds of mortgage and a mortgage includes 
an out and out sale with an agreement, written, or oral, 
for reconveyance of the property transferred, to the 
transferor; 
CO "debtor" means a person who is resident outside an area 
included in a Corporation, Municipality, notified area or 
Cantonment and who belongs to any of the following 
categories, namely:— 
(i) marginal farmer, 
(ii) small farmer, 
(iii) agricultural labourer, and 
(iv) artisan; 
(j) "farmer" means a person who is engaged in agriculture; 
(k) "marginal farmer" means a farmer who possesses not more 
than two hectares if he is a member of any of the Scheduled 
Tribes, and one hectare in other cases, of land, either as an 
owner or as a raiyat or as a share-cropper; 
217 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
[West Ben. Act 
(Sections 3-5.) 
(1) "prescribed" means prescribed by rules made under this Act; 
(m) "small farmer means a farmer who possesses more than two 
hectares but less than four hectares if he is a member of any 
of the Scheduled Tribes, and more than one hectare but less 
than two hectares in other cases, of land, either as an owner 
or as a raiyat or as a share-cropper. 
3. The State Government may, by notification, appoint one or more 
persons as authorities, for carrying out the purposes of this Act, in 
respect of local areas to be specified in such notification. 
Application 	 4. (1) A debtor may, within such time and in such manner as may 
for determi- be prescribed, make an application to an authority for the local area nation of 
debt. 	 within which such debtor ordinarily resides, for determination of his 
debt. 
(2) Unless the debtor has already made an application under 
sub-section (1) any of his creditors may also make an application to the 
same authority to which, and in the same manner in which, the debtor 
might have applied under that sub-section for determination of the debt 
in question. 
(3) If applications are made to more than one authority in respect of 
the same debt, such applications shall, subject to such rules as may be 
made in this behalf, be transferred to and dealt with by one authority. 
(4) An application under sub-section (1) or under sub-section (2) 
shall be in writing in the prescribed form and shall be accompanied by 
such fee as may be prescribed. 
5. (1) On receipt of an application under section 4 the authority 
after giving an opportunity to the parties concerned to appear and be 
heard, shall determine in respect of the debt in question the amount of 
the principal and the amount of interest due thereon, up to the date of 
such determination. 
(2) When the authority has determined under sub-section (1) the 
amount of the debt together with interest the decision of the authority to 
be embodied in an order, shall, subject to the provisions of section 12 
relating to appeal, be final and shall not be called in question in any 
civil court. 
(3) The procedure to be followed by an authority in any proceeding 
before it shall, subject to the provisions of this Act, be in accordance 
with such rules as may be prescribed. 
Appoint- 
ment of 
authority. 
Determina-
tion of 
amount. 
218 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
XLVI of 1975.] 
(Sections 6-8.) 
6. An order made under sub-section (2) of section 5 shall be in the Order. 
prescribed form and shall include such particulars as may be prescribed. 
7. (1) Notwithstanding anything contained elsewhere in this Act,— Relief to 
rs (i) in every case in which a debtor is— 	 certa
debtion in 
 
(a) an agricultural labourer whose total annual cases. 
income from all sources does not exceed rupees 
twenty-four hundred, or 
(b) a marginal farmer whose land is non-irrigated, or 
(c) an artisan whose total annual income from all 
sources does not exceed rupees twenty-four 
hundred, 
the authority shall pass an order discharging the debt completely and 
grant him a certificate of discharge in the prescribed form which shall 
release the debtor from all debts which were or might have been 
included in the application under section 4, 
(ii) in every case in which the debtor is a small farmer, or a 
marginal farmer whose land is irrigated, the authority 
shall subject to such rules as may be made in this 
behalf, by an order, reduce the debt to such amount as 
does not exceed twenty per cent. of the estimated gross 
value of the agricultural produce earned by such debtor 
in the year preceding the year in which the 
determination takes place, multiplied by a figure not 
exceeding seven and shall make a further order that the 
amount of the debt be repaid in such monthly or annual 
instalments covering a period not exceeding seven 
years, either with or without interest, as the authority 
may determine. 
(2) Subject to the provisions contained in sub-section (1), in every 
other case in which an order is made under scetion 5, the debtor shall 
repay the debt, with interest, if any, in such number of instalments 
covering a period not exceeding seven years as may be mentioned in the 
order. 
8. Notwithstanding anything contained in any law for the time being Prohibition 
in force, or in any agreement, no debtor shall be liable to pay after the rreafealan didng 
commencement of this Act— 	 amount of 
interest. 
219 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
[West Ben. Act 
Bar to suits 
and procee-
dings and 
execution of 
decrees in 
civil or 
revenue 
courts. 
Decision as 
to status 
of a debtor 
or nature 
of liability 
Transfer 
of applica-
tion from 
one auth-
ority to 
another. 
Appeals. 
(Sections 9-12.) 
(a) any sum in respect of principal and interest which together 
exceeds twice the principal, 
(b) on account of interest outstanding on the date up to which 
such liability is computed, a sum greater than the principal 
outstanding on such date, 
(c) any interest other than simple interest at a rate of six per 
centum per annum or the rate stipulated between the parties, 
whichever is less. 
9. (1) No civil or revenue court shall entertain a suit, application or 
proceeding against a debtor in respect of any debt to which the 
provisions of this Act apply and any suit, application or proceeding 
pending before such court after the coming into force of this Act shall 
abate. 
(2) Notwithstanding anything contained in any law for the time 
being in force, no decree of a civil court or certificate under the Bengal 
Public Demands Recovery Act, 1913, in relation to a debt to which the 
provisions of this Act apply, shall be executed. 
10. If any question arises in connection with a proceeding under 
this Act before an authority as to whether a person is a debtor or not or 
whether a liability is a debt or not, the authority shall decide the 
question. 
11. (1) The State Government may authorise the Collector to 
transfer from one authority to another, for disposal, an application made 
under section 4. 
(2) An authority to which an application is transferred under 
sub-section (1) may continue the proceeding in connection with the 
application from the stage which has been reached when the application 
is transferred. 
12. (1) An appeal may be made in the prescribed manner to an 
Appellate Officer to be appointed by the State Government, against any 
decision or order of an authority, made under this Act. 
(2) An appeal under sub-section (1) shall be made within thirty days 
from the date of the decision or order referred to in that sub-section. 
(3) The State Government may make rules regarding the procedure 
to be followed by an Appellate Officer and the fees to be paid by an 
appellant for preferring the appeal. 
Ben. Act 
Ill of 
1913. 
220 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
XLVI of 1975.1 
(Sections 13-18.) 
(4) The Appellate Officer may, after giving the appellant an 
opportunity of being heard, either confirm or modify the decision or 
order made by the authority or direct the authority to take such action as 
the Appellate Officer thinks fit. 
(5) An order passed by an Appellate Officer under this section shall 
be final. 
	
1 of 1872. 	 13. The provisions of the Indian Evidence Act, 1872 and the Code C 
	
5 of 1908. 	
Artsain 
t 
of Civil Procedure, 1908, shall not apply to any proceeding before an apply. to 
authority or an Appellate Officer. 
14. Subject to any rules made in this behalf, no legal practitioner or Represen-
any n of a other agent shall represent any party in any proceeding before an ta 
party 
authority or an Appellate Officer, without the permission of the before a 
authority or Appellate Officer, as the case may be. 	 court. 
15. No suit, prosecution or legal proceeding shall lie against an Indemnity. 
authority or an Appellate Officer or any other person in respect of 
anything in good faith done or intended to be done under this Act. 
16. (1) Whoever,— 	 Penalty. 
(a) intentionally makes any false statement before an authority or 
an Appellate Officer in any proceeding under this Act, 
(b) intentionally produces before an authority or an Appellate 
Officer any false document, or 
(c) abets any such act, 
shall, on conviction, be liable to imprisonment for a term which may 
extend to one year or to a fine which may extend to one thousand rupees 
or to both. 
(2) No prosecution for any offence under this section shall lie except 
with the permission of the Collector. 
17. (1) The State Government may make rules for carrying out the Power to 
purposes of this Act. 	 make rules. 
(2) In particular and without prejudice to the generality of the 
foregoing power such rules may provide for all or any of the matters 
which may be or has to be prescribed. 
18. The provisions of this Act shall have effect notwithstanding Act to 
anything to the contrary contained in any other law, in any contract, override 
other laws. 
express or implied, or in any instrument and notwithstanding any 
custom or usage to the contrary. 
221 
The West Bengal Relief of Rural Indebtedness Act, 1975. 
[West Ben. Act XLVI of 1975 
(Sections 19, 20.) 
Saving 	 19. It is hereby declared that the provisions of this Act are for under 	 giving effect to the policy of the State towards securing the principles article 31C 
of the 	 specified in clause (b) and clause (c) of article 39 of the Constitution. Constitu-
tion. 
Repeal an.. 	 20. (1) The West Bengal Relief of Rural Indebtedness Ordinance, West Ben. savings. 	 1975, is hereby repealed. 	 Ord. XIX 
of 1975. 
(2) Anything done or any action taken under the West Bengal Relief 
of Rural Indebtedness Ordinance, 1975, shall be deemed to have been 
validly done or taken under this Act as if this Act were in force on the 
day on which such thing was done or such action was taken. 
222 

‹ Prev All West Bengal acts Next ›