DISPLACED PERSONS (DEBTS ADJUSTMENT) ACT,1951

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

(1) This Act may be called the Displaced Persons (Debts Adjustment) Act, 1951.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date¹as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different States or for different parts thereof

SECTION 02: DEFINITIONS

In this Act, unless the context otherwise requires,-

(1) "company" means a company as defined in the Indian Companies Act, 1913, and includes a company deemed to be registered under that Act by reason of any of the provisions contained in this Act:

(2) "Companies Act" means the Indian Companies Act, 1913;

(3) "compensation" means any compensation paid, whether in cash or in kind, in respect of any immovable property in West Pakistan belonging to a displaced person under any general scheme arrived at in this behalf between the Government of India and the Government of Pakistan or framed by the Government of India;

(4) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912or under any other law for the time being in force in any State for the registration of cooperative societies;

(5) "Co-operative Societies Act" meansthe Co-operative Societies Act, 1912, and includes any other law for the time being in force in any State relating to co-operative societies;

(6) "debt" means any pecuniary liability, whether payable presently or in future, or under a decree or order of a Civil or Revenue Court or otherwise, or whether ascertained or to be ascertained, which -

(a) in the case of displaced person who has left or been displaced from his place of residence in any area now forming part of West Pakistan, was incurred before he came to reside in any area now forming part of India;

(b) in the case of a displaced person who, before and after the 15th day of August, 1947, has been residing in any area now forming part of India, was incurred before the said date on the security of any immovable property situate in the territories now forming part of West Pakistan : Provided that where any such liability was incurred on the security of immovable properties situate both in India and in West Pakistan, the liability shall be so apportioned between the said properties that the liability in relation to each of the said properties bears the same proportion to the total amount of the debts as the value of each of the properties as at the date of the transaction bears to the total value of the properties furnished as security, and the liability, for the purposes of this clause, shall be the liability which is relatable to the property in West Pakistan;

(c) is due to a displaced person from any other person (whether a displaced person or not) ordinarily residing in the territories to which this Act extends; and includes any pecuniary liability incurred before the commencement of this Act by any such person as is referred to in this clause which is based on, and is solely by way of renewal of, any such liability as is referred to in sub-clause (a) or sub-clause (b) or sub-clause (c) :

Provided that in the case of a loan, whether in cash or in kind, the amount originally advanced and not the amount for which the liability has been renewed shall be deemed to be the extent of the liability; but does not include any pecuniary liability due under a decree passed after the 15th day of August, 1947 by any Court situate in West Pakistan or any pecuniary liability the proof of which depends merely on an oral agreement;

(7) "displaced bank" means a banking company which, before the 15th day of August, 1947. carried on the business of banking, whether wholly or partially, in any area now forming part of West Pakistan and is declared to be a displaced bank within the meaning of this Act by the Central Government by notification2in the Official Gazette:

(8) "displaced creditor" means a displaced person to whom a debt is due from any other person, whether a displaced person or not;

(9) "displaced debtor" means a displaced person from whom a debt is due or is being claimed;

(10) "displaced person" means any person who. on account of the setting up of the Dominions of India and Pakistan, or on account of civil disturbances or the fear of such disturbances in any area now forming part of West Pakistan, has, after the 1st day of March, 1947, left, or been displaced from, his place of residence in such area and who has been subsequently residing in India, and includes any person who is resident in any place now forming part of India and who for that reason is unable or has been rendered unable to manage, supervise or control any immovable property belonging to him in West Pakistan, but does not include a banking company;

(11) "prescribed" means prescribed by rules made under this Act;

(12) "Tribunal" means any Civil Court specified undersection 4-as having authority to exercise jurisdiction under this Act;

(13) "verified claim" means any claim registered underthe Displaced Persons (Claims) Act, 1950in respect of which a final order has been passed under that Act relating to its verification and valuation;

(14) "West Pakistan" means the territories of Pakistan excluding the Province of East Bengal.

SECTION 03: OVERRIDING EFFECT OF ACT, RULES AND ORDERS

Save as otherwise expressly provided in this Act, the provisions of this Act and of the rules and orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, or in any decree or order of a Court or in any contract between the parties.

SECTION 04: TRIBUNALS COMPETENT TO EXERCISE JURISDICTION UNDER THIS ACT

The State Government may, by notification in the Official Gazette, specify any Civil Court or class of Civil Courts as the Tribunal or Tribunals having authority to exercise jurisdiction under this Act and may define the areas in which and the extent to which such jurisdiction may be exercised.

SECTION 05: APPLICATION BY DISPLACED DEBTORS FOR ADJUSTMENT OF DEBTS

(1) At any time within one year after the date on which this Act comes into force in any local area, a displaced debtor may make an application for the adjustment of his debts to the Tribunal within the local limits of whose jurisdiction he actually and voluntarily resides, or carries on business or personally works for gain.

(2) Every application by a displaced debtor shall contain the following particulars namely:-

(a) the place where he resides;

(b) the trade, calling, profession or other employment in which he is now engaged and in which he was engaged in West Pakistan before he became a displaced person;

(c) his average annual income in India during the three years immediately preceding the application;

(d) the income-tax and super-tax if any, to which he has been assessed for three years immediately preceding the application;

(e) such other particulars as may be prescribed; and shall be accompanied by the following schedules, namely:

(i) a schedule containing full particulars of all his debts, whether owed jointly or individually, with the names and addresses of his creditors and joint-debtors, if any, so far as they are known to, or can by the exercise of reasonable care and diligence be ascertained by him;

(ii) a schedule of all his properties, both movable and immovable (including claims due to him) which are not liable to attachment either underthe Code of Civil Procedure, 1908-, as amended bysection 31-of this Act or under any other law for the time being in force, a specification of the values thereof and of the places where the same may be found:

(iii) a schedule of all his properties, both movable and immovable (including claims due to him) which are not included in the schedule under item (ii) of this clause; and

(iv) a schedule of all his properties in respect of which a claim has been submitted to the registering officer underthe Displaced Persons (Claims) Act, 1950and, where any order has been passed in relation to the verification and valuation of the claim under that Act, with a certified copy of the order.

(3) All persons whose names are shown in any schedule as having claims against the displaced debtor and all persons whose names are shown as joint-debtors shall be deemed to be the respondents to the application and there shall be filed along with the application or with the permission of the Tribunal at any later stage of the proceedings, as many copies of the application and as many envelopes and notices in the prescribed form duly addressed to the respondents as there are respondents.

Clauses (c) and (d).- "In our opinion the average annual income for the preceding three years would give a better indication of the position of the displaced debtor than his present average monthly income in India as suggested in the original Bill. We have made provision accordingly, and have made a small consequential change in sub-el, (d)" -S.C.R.

SECTION 06: REJECTION OF APPLICATION IN CERTAIN CASES

Where an application made undersection 5-does not comply with any of the requirements of that section, the Tribunal may either reject it, or grant to the applicant such further time as it thinks fit to comply with such requirements."We have revised this clause so as to vest a discretion in the Tribunal either to reject an application which does not comply with the requirements of the Act or to grant the applicant further time, if it thinks fit. to comply therewith."- S. C. R.

SECTION 07: ISSUE OF NOTICE

If the application is not rejected undersection 6-, the Tribunal shall, after causing the date for the hearing of the application to be entered in the notices referred to insection 5-, cause them to be served on the respondents.

SECTION 08: OBJECTION BY RESPONDENTS

In response to a notice undersection 7-, the respondent may show cause against the application by filing a written statement containing his objections to the application: Provided that where he does not appear in person or through any authorized agent, the written statement may be sent by registered post, acknowledgment due, to the Tribunal after having been signed in the presence of a civil judicial officer or a Magistrate or any other prescribed officer and duly attested by such officer or Magistrate."We have made a small change in the Proviso so as to make it clear that any judicial officer exercising civil or criminal powers may attest the written statement. Power is also given to prescribe other officers for the purpose of this clause."- S.C.R.

SECTION 09: PROCEEDING AFTER SERVICE OF NOTICE ON RESPONDENTS

(1) If there is a dispute as to whether the applicant is a displaced person or not or as to the existence of the amount of the debt due to any creditor or the assets of any displaced debtors, the Tribunal shall decide the matter after taking such evidence as may be adduced by all the parties concerned and shall pass such decree in relation thereto as it thinks fit.

(2) If there is no such dispute or if the respondents do not appear or have no objection to the application being granted, the Tribunal may, after considering the evidence placed before it, pass such decree in relation thereto as it thinks fit.

"We have made it clear that the Tribunal may also decide whether the applicant is a displaced person or not. We have also made a similar change in clause 14 (now S. 14) with respect lo displaced creditors." S.C.R.

SECTION 10: CLAIMS BY CREDITORS AGAINST DISPLACED DEBTORS

Any displaced person having a claim against a displaced debtor may make an application, in such form as may be prescribed, for the determination thereof to the Tribunal within the local limits of whose jurisdiction the displaced debtor actually and voluntarily resides, or carries on business, or personally works for gain, together with a statement of the debts owed to the creditor with full particulars thereof. "We have amended clause 51 (now section 51-) so as to provide that compromises or arrangements entered into between displaced banks and displaced debtors should not be affected, if there is in force in respect of the displaced bank a scheme approved by the High Court. Consequently, we think clause 10( now section 10-) should be confined to claims by displaced persons." S.C.R.

SECTION 11: PROCEDURE ON CREDITOR'S PETITION

(1) Where an application under section 10-has been made, the Tribunal shall cause notice thereof to be served on the displaced debtor calling upon him either to show cause, if any, against the application or to make an application on his own behalf under section 5-.

(2) If, in response to a notice under sub-section (1), the displaced debtor makes an application in accordance with the provisions of section 5-, the Tribunal shall proceed further in the matter as if it had commenced with an application by the displaced debtor under section 5-, and all the other provisions of this Act shall apply accordingly; but, if the displaced debtor does not choose to make any such application, the Tribunal shall, after considering such evidence, if any, as may be produced before it, determine the claim and pass such decree in relation thereto as it thinks fit.

(3) The period of limitation specified in sub-section (1) of section 5-in respect of an application by a displaced debtor shall not apply to an application made under sub-section (2),

SECTION 12: OBJECTION BY CREDITOR TO SCHEDULE OF ASSETS

(1) Any creditor of a displaced debtor may make an application to the Tribunal staling that the displaced debtor, who has made an application under section 5-or sub-section (2) of section 11-has concealed any part of his assets, and the Tribunal shall, after giving due notice thereof to the displaced debtor, determine the matter.

(2) If the Tribunal finds that the displaced debtor has wilfully and fraudulently omitted to include such assets in his application, the Tribunal may dismiss the application or refuse to allow to the displaced debtor any of the reliefs under this Act to which he would otherwise have been entitled or pass such other order in relation thereto as it thinks fit.

SECTION 13: CLAIMS BY DISPLACED CREDITORS AGAINST PERSONS WHO ARE NOT DISPLACED DEBTORS

At any time within one year after the date on which this Act comes into force in any local area, any displaced creditor claiming a debt from any other person who is not a displaced person may make an application, in such form as may be prescribed, to the Tribunal within the local limits of whose jurisdiction he or the respondent or, if there are more respondents than one, any of such respondents, actually and voluntarily resides, or carries on business or personally works for gain together with a statement of the debt owing to him with full particulars thereof.

SECTION 14: PROCEDURE ON DISPLACED CREDITOR'S PETITION

(1) Where an application under section-has been made to the Tribunal, the Tribunal shall cause notice thereof to be given to the debtor, calling upon him to show cause, if any, against the application.

(2) If there is a dispute as to whether the applicant is a displaced creditor or not or as to the existence of the debt or as to the amount thereof, the Tribunal shall decide the matter, after taking such evidence as may be produced before it, and pass such decree in relation thereto as it thinks fit.

(3) If there is no such dispute or if the debtor does not appear or has no cause to show, the Tribunal may, after considering the evidence placed before it, pass such decree in relation thereto as it thinks fit.

SECTION 15: CONSEQUENCES OF APPLICATION BY DISPLACED DEBTOR

Where a displaced debtor has made an application to the Tribunal under section 5-or under sub-section (2) of section 11-, the following consequences shall ensue, namely:-

(a) all proceedings pending at the date of the said application in any Civil Court in respect of any debt to which the displaced debtor is subject (except proceedings by way of appeal or review or revision against decrees or orders passed against the displaced debtor) shall be stayed, and the records of all such proceedings other than those relating to the appeals, reviews or revisions as aforesaid shall be transferred to the Tribunal and consolidated;

(b) all attachments, injunctions, orders appointing receivers or other processes issued by any such Court and in force at the date of the said application in respect of any such debt shall cease to have effect and no fresh process shall, except as hereinafter expressly provided, be issued : Provided that where an order appointing a receiver ceases to have effect under this section, the receiver shall, within fourteen days from the date on which his appointment ceases to have effect or within such further time as the Tribunal may in any case allow, submit to the Tribunal instead of to the Court which appointed him his outstanding accounts, and the Tribunal shall, in relation to such accounts, have the same powers with respect to the receiver as the Court which appointed him had or could have had;

(c), no fresh suit or other proceeding [other than any such appeal, review or revision as is referred to in clause (a)] shall be instituted against a displaced debtor in respect of any debt mentioned by him in the relevant schedule to his application;

(d) any immovable property belonging to the displaced debtor and liable to attachment shall not be transferred except under the authority of the Tribunal and on such terms as it thinks fit until the application of the displaced debtor has been finally disposed of or any decree passed against him is satisfied in accordance with the provisions of this Act.

"We have amplified this clause so as to provide that - (a) the displaced debtor shall not transfer his immovable property without the permission of the Tribunal pending the disposal of the proceedings initiated by him or pending the satisfaction of any decree passed against him; and (b) the receiver appointed by a civil Court shall be accountable to the Tribunal where the order appointing him ceases to have "effect". - S.C.R.

SECTION 16: DEBTS SECURED ON IMMOVABLE PROPERTY

(1) Where a debt incurred by a displaced person is secured by a mortgage, charge or lien on the immovable property belonging to him in West Pakistan, the Tribunal may, for the purpose of any proceeding under this Act, require the creditor to elect to retain the security or to be treated as an unsecured creditor.

(2) If the creditor elects to retain the security, he may apply to the Tribunal, having jurisdiction in this behalf as provided in section 10-, for a declaration of the amount due under his debt.

(3) Where in any case, the creditor elects to retain his security, if the displaced debtor receives any compensation in respect of any such property as is referred to in sub-section (1), the creditor shall be entitled -

(a) where the compensation is paid in cash, to a first charge thereon: Provided that the amount of the debt in respect of which he shall be entitled to the first charge shall be that amount as bears to the total debt the same proportion as the compensation paid in respect of the property bears to the value of the verified claim in respect thereof and to that extent the debt shall be deemed to have been reduced;

(b) where the compensation is by way of exchange of property, to a first charge on the property situate in India so received by way of exchange: Provided that the amount of the debt in respect of which he shall be entitled to the first charge shall be that amount as bears to the total debt the same proportion as the value of the property received by way of exchange bears to the value of the verified claim in respect thereof and to that extent the debt shall be deemed to have been reduce

(4) Notwithstanding anything contained in this section, where a debt is secured by a mortgage of agricultural lands belonging to a displaced person in West Pakistan and the mortgage was with possession, the mortgagee shall, if he has been allotted lands in India in lieu of the lands of which he was in possession in West Pakistan, be entitled to continue in possession of the lands so allotted until the debt is satisfied from the usufruct of the lands or is redeemed by the debtor: Provided that in either case the amount of the debt shall be only that amount as bears to the total debt the same proportion as the value of the lands allotted to the creditor in India bears to the value of the lands left behind by him in West Pakistan and to that extent the debts shall be deemed to have been reduced.

(5) Where a creditor elects to be treated as an unsecured creditor, in relation to the debt, the provisions of this Act shall apply accordingly.

SECTION 17: DEBTS SECURED ON MOVABLE PROPERTY

"We have amplified .this clause so as lo cover all cases where pledged property had actually been placed in the possession of the creditor or where the circumstances are such that the creditor should be deemed to be in possession of the pledged property." S.C.0.

SECTION 18: CLAIMS AGAINST INSURANCE COMPANIES

(1) Where any property in West Pakistan belonging to a displaced person was insured with any insurance company before the 15th day of August 1947, against any risk arising out of fire or theft or riot and civil commotion and there has been a loss in respect of such property arising out of any such risk at a time when the contract of insurance was in force, such company shall not be entitled to refuse payment of the sum due under any claim in relation thereto on the ground that -

(a) no report was lodged with the police within the agreed time, or

(b) the claim was not made to the company within the agreed time, or

(c) in the case of a policy covering any risk arising out of riot and civil commotion, the disturbances in West Pakistan were not in the nature of a riot or civil commotion, or

(d) the displaced person has not fulfilled any other condition of the contract which in the opinion of the Central Government is of a technical nature and which the Central Government has, by notification³in the Official Gazette, specified as a condition of the contract for the purposes of this section, and any contract to the contrary, to the extent to which it is in contravention of the provisions of this sub-section, shall be deemed to have had no effect.

(2) Where a loss has been incurred in respect of any property in the circumstances specified in sub-section (1), the Tribunal shall, in every proceeding where it is necessary to do so, determine respectively the amount of the loss, the amount for which the property was insured on the date of such loss, and the amount, if any paid by the insurance company, and shall make a report thereof to such board or other authority as may be prescribed, and the prescribed board or other authority shall, after taking into account such matters as may be prescribed as being relevant thereto, and subject to any rules made in this behalf, in turn propose to the Tribunal the amount for which the claim against the insurance company shall be decreed, and the Tribunal shall pass a decree accordingly.

(3) The amount realised from the insurance company under any decree passed under sub-section (2) shall first be applied towards the satisfaction of the debt due from the displaced person and, the balance, if any, shall be refunded to the displaced person.

(4) An application under this section may be made either by a displaced person having a claim against the insurance company in the circumstances specified in sub-section (1) or by an assignee or any other person having an interest in the claim of any such displaced person, to the Tribunal within the local limits of whose jurisdiction the displaced person actually and voluntarily resides or carries on business or personally works for gain or, in the case of a displaced bank making an application under this section, within whose limits the bank carries on business, for the determination of the amount due in respect of the claim in accordance with the provisions of sub-section (2).

(5) To every proceeding under sub-section (4) the insurance company and all persons interested in the claim shall be made parties: Provided that the Tribunal may at any stage of the proceeding direct that the name of any person whose presence before the Tribunal may be necessary in order to enable the Tribunal effectually and completely to adjudicate upon and settle all the questions involved, be added to the proceeding.

(6) No application under this section shall be entertained in any case where no claim has been made to the insurance company within one year after the date of the loss.

SECTION 19: CALLS ON SHARES IN COMPANIES

"In our opinion, the right of third parties who have acquired any interest in shares forfeited by a company for non-payment of calls should not be disturbed, but at the same time suitable relief should be afforded to the displaced shareholders whose shares have been forfeited. The most equitable course to follow would be to provide for an increase of capital in such cases. We have also provided that any action taken by the company after the forfeiture of shares, should not be affected merely by reason of the fact that the rights of the holders of the forfeited shares have now been restored vis-a-vis the company." S.C.R.

SECTION 20: NO CALLS TO BE MADE ON DISPLACED PERSON OR BANK WHEN COMPANY OR CO-OPERATIVE SOCIETY IS IN LIQUIDATION

(1) Where a company or a co-operative society is being wound up, no displaced person or displaced bank shall be called upon, notwithstanding anything to the contrary contained in the Companies Act or in the memorandum or articles of association or the Co-operative Societies Act, to make any contribution to the assets of the company or co-operative society, as the case may be, in respect of any share held by him or it in the company or society on the 15th day of August, 1947.

(2) The provisions of this section shall have effect for a period often years from the 15th day of August, 1947, and shall also apply in respect of any calls made and not satisfied before that date, and shall cease to have effect after the expiry of the said period except as respects things done or omitted to be done.

SECTION 21: POWER TO REVISE CERTAIN DECREE AND SETTLEMENT

Sub-section (3).-"In our opinion, settlements arrived at between insurance companies and displaced persons or displaced banks in respect of any claim against the insurance company in any case where payments have been made should not be reopened; and we have provided accordingly." - S.C.R.

SECTION 22: APPORTIONMENT OF JOINT DEBTS

Where a debt is due from a displaced person jointly with another person, the Tribunal shall, for the purposes of this Act, apportion the liability between them according to the following rules, namely:-

(a) if the liability of each debtor is defined, then according to the defined share of each;

(b) if the debt was taken for any trade or business of the joint debtors, then according to the shares held by each of the joint debtors in the trade or business;

(c) if the debt was not taken in any defined shares or for any trade or business in which the partners have any defined share, the debt shall be apportioned into as many parts as there are joint debtors, and each joint debtor shall be liable only for the part apportioned to him;

(d) if one joint debtor is a displaced person and another is not, the sum apportioned to the non displaced person shall not be deemed to be a debt within the meaning of this Act and the creditor may in respect of such debt seek any remedy open to him in a civil Court or otherwise;

(e) if the debt was taken by a joint Hindu family, the members of the joint Hindu family shall be deemed to be joint debtors within the meaning of this section and the debt shall be apportioned amongst the members thereof in the same proportion in which shares would be allotted to them on partition : Provided that the share of any member of such a joint family any of whose male lineal ascendants in the male line of ascent is alive and joint with such member shall be deemed to be included in the share of his oldest surviving ascendant in the male line of ascent, and such member shall not be separately regarded as a joint debtor for the purpose of this clause;

(f) if the liability is secured by a mortgage of movable and immovable properties, the debt shall be apportioned between the two properties in the same proportion as the value of each property bears to the total value of the properties;

(g) where the relationship between the joint debtors is that of principal and surety, nothing contained in this Act shall prevent the institution of a suit for the recovery of. the debt against the surety but no decree shall be passed in such suit for an amount in excess of the amount decreed or which can be decreed against the principal debtor in accordance with the provisions of this Act; Provided that the total amount which may be recovered from the principal debtor and the surety shall not exceed the amount decreed or which can be decreed by the Tribunal against the principal debtor in accordance with the provisions of this Act.

SECTION 23: SIMPLIFIED PROCEDURE IN CERTAIN CASES

In the determination of any individual debt which does not exceed five thousand rupees,-

(a) it shall not be necessary for the Tribunal to take down the evidence of the witnesses in writing at length but the Tribunal, as the examination of each witness proceeds, shall make a memorandum of the substance of what he deposes and such memorandum shall be written and signed by the Tribunal and shall form part of the record;

(b) the decision of the Tribunal need not contain more than the points for determination and the decision thereon.

SECTION 24: PRESUMPTION RESPECTING REGISTERED DOCUMENTS

It shall be presumed until the contrary is proved that any document registered under the Indian Registration Act, 1908or any certified copy thereof and produced before the Tribunal has been proved.

SECTION 25: APPLICATION OF ACT 5 OF 1908

-Save as otherwise expressly provided in this Act or in any rules made there under, all proceedings under this Act shall be regulated by the provisions contained in the Code of Civil Procedure, 1908-

SECTION 26: SIGNING AND VERIFICATION OF APPLICATIONS AND WRITTEN STATEMENTS

Every application and the schedules, if any, attached thereto and every written statement filed before the Tribunal for any relief under this Act shall be signed and verified in the manner prescribed by the Code of Civil Procedure, 1908-, for the signing and verification of pleadings.

SECTION 27: CONTENTS OF DECREES

In all cases in which the Tribunal passes a decree on the application of a displaced person, it shall prepare a complete schedule of the creditors and of the assets and liabilities of the displaced person.

SECTION 28: EXECUTION OF DECREES

It shall be competent for the Civil Court which has been specified as the Tribunal for the purposes of this Act to execute any decree or order passed by it as the Tribunal in the same manner as it could have done if it were a decree or order passed by it as a Civil Court.

SECTION 29: CESSER OF ACCRUAL OF INTEREST

"In our opinion it would be equitable to exclude from the operation of this section interest payable during the period from the 15th August, 1947, to the date of commencement of this Act on shares, stocks. Government or other securities pledged with a creditor. We also think that a discretion should be given to the Tribunal to award interest during this period to any creditor, if it thinks it proper to do so, but the interest should not exceed four per cent, per annum simple in any such case. A second category of cases which we have excluded from the operation of this provision relates to revival of insurance policies under automatic non-forfeiture clauses and the like." - S.C.R.

SECTION 30: EXEMPTION FROM ARREST

No displaced person shall be liable to arrest or imprisonment in execution of any decree for the recovery of any debt whether passed before or after the commencement of this Act.

SECTION 31: FURTHER RELIEFS IN THE MATTER OF ATTACHMENT OF PROPERTY

Section 60 of the Code of Civil Procedure, 1908-shall, in relation to the execution of any decree for a debt against a displaced person (whether passed before or after the commencement of this Act), have effect as if-

(1) for clause (c) of the proviso to sub-section (1), the following clauses had been substituted, namely:

"(c) houses and other buildings (with the materials and the sites thereof and the land immediately appertaining thereto and necessary for their enjoyment) belonging to an agriculturist and not proved by the decree-holder to have been let out on rent or otherwise to any person other than the father, mother, wife, son, daughter, daughter- in-law, brother, sister or other dependant of the judgment-debtor or to have been left vacant for a period of one year or more;

(cc) milch animals, whether in milk or in calf, kids, animals used for the purpose of transport or draught cart and open spaces or enclosures belonging to an agriculturist and required for use in case of need for tying cattle, parking carts or stacking fodder or manure;

(ccc) one main residential house and other buildings attached to it (with the materials and the sites thereof and the land immediately appertaining thereto and necessary for their enjoyment) belonging to a judgment –debtor other than an agriculturist and occupied by him:"

(2) in clause (i), for the words "hundred rupees" the words "two hundred and fifty rupees" had been substituted:

(3) after clause (p), the following clauses had been inserted, namely:

"(q) two-thirds of the agricultural produce of the judgment-debtor:

(r) so much of any other property of the judgment-debtor as constitutes the means of his livelihood and as is likely, in the opinion of the Court, to yield to him an income of not less than two hundred and fifty rupees a month:

(s) any loan advanced or agreed to be advanced by or on behalf of or out of the funds of the Central Government or a State Government, or any asset created from any such loan;".

"Any private asset which is severable from any asset created out of a loan advanced by Government should be capable of being proceeded against under this Act in execution of any decree or order against a displaced person, and we have added an Explanation to clause (s) accordingly." - S.C.R.

SECTION 32: SCALING DOWN OF DEBTS

( 1 ) Where, on the application of a displaced debtor under Section 5-or sub-section (2) of Section 11-, the Tribunal has determined the amount due in respect of each debt in accordance with the provisions of this Act, it shall proceed to determine the paying capacity of the debtor.

(2) If the paying capacity of the debtor is equal to or exceeds the aggregate sum of all the debts so determined (exclusive of any debt in respect of which the creditor has elected to retain the security in accordance with the provisions of Section 16-), the Tribunal shall pass a decree for the aggregate sum so determined, specifying the amount due to each creditor and shall allow repayment thereof in instalments, in accordance with the provisions contained in Section 33-, unless for reasons to be recorded it directs otherwise.

(3) If the paying capacity of the debtor is less than the aggregate sum referred to in sub-section (2), the Tribunal shall divide the decree into two parts and provide in the first part thereof (hereinafter referred to as the first part of the decree) that the sum equivalent to the paying capacity shall, subject to the provisions contained in section 33-, be realised from the assets of the debtor in India and provide in the second part thereof (hereinafter referred to as the second part of the decree) that the balance shall be realised, subject to the provisions Contained in Sub-section (6), from any compensation which the debtor may receive : Provided that if no such compensation is received, the balance shall be irrecoverable.

(4) A creditor who has elected to retain his security under section 16-shall have no right to realise any money due to him from the assets of the debtor in India, hut nothing in this sub-section shall affect any of the rights given to him by section 16-.

(5) A creditor shall have the right at any time at least six months before the receipt by the debtor of compensation to apply that the whole or the balance of the first part of the decree, in so far as any debt due to him is concerned, may be added to the second part of the decree, and thereupon he shall have no right to realise any money from the assets of the debtor in India.

(6) For the purposes of this Act, the amount payable from the compensation for the satisfaction of the second part of the decree shall be that amount as bears to the aggregate amount of all the debts in the second part of the decree [including therein any sum added to it under sub-s. (5) and the sum determined in favour of the secured creditor in the manner specified in the proviso to clause (a) of sub-section (3) of section 16-] as the compensation in respect of the property of the debtor payable to him under the Displaced Persons (Claims) Act, 1950bears to the verified claim; and the balance of the compensation, if any, shall be refunded to the displaced debtor.

(7) Every instalment paid by the displaced debtor in respect of the first part of the decree and any sum payable from the compensation in accordance with sub-section (6) shall be distributed rateably amongst the decree-holders, if more persons than one are entitled thereto : Provided that the secured creditor who has not elected to be treated as an unsecured creditor under section 16-shall be entitled to a prior charge on the amount payable from the compensation.

(8) Where a displaced person receives compensation by way of exchange of property, then, subject to the prior charge, if any, of a creditor under section 16-, the aggregate sum payable in respect of the second part of the decree shall be a second charge upon the property received by way of exchange, but the amount of the second charge shall be that amount as bears to the total sum the same proportion as the value of the property received by way of exchange bears to the value of the original property verified and valued under the Displaced Persons (Claims) Act, 1950.

(9) Where a displaced person makes a default in the payment of any instalment fixed in respect of the first part of the decree or does not pay the amount determined in accordance with sub-section (4) of section 16-or sub-section (8) of this section for which the first or the second charge may have been created upon the property received by way of exchange, the creditor may apply for the execution of the decree by the attachment and sale of the attachable assets of the judgment-debtor or by the sale of the property obtained by way of exchange upon which the charge has been created, as the case may be and the amount realised by such execution shall be distributed rateably among the decree-holders Provided that nothing contained in this sub-section shall affect the rights of any charge- holders.

(10) For the purposes of this Act, where the compensation is paid in cash, the amount which shall be available for purposes of satisfaction of the debts in the second part of the decree shall in no case exceed seventy-five per cent. of the amount of such compensation; and where it is by way of exchange of property, the extent of the property which shall be available for the said purposes shall in no case exceed seventy-five per cent, in value of such property.

SECTION 33: MATTERS TO BE TAKEN INTO ACCOUNT IN DIRECTING PAYMENT BY INSTALMENTS

(1) In directing payment of any sums by instalments under the first part of the decree, the Tribunal shall take into account among other matters -

(a) the present income of the displaced debtor from all sources and the income that is likely to accrue to him in future.

(b) the size of the family dependent upon him for the ordinary necessaries of life and the expenditure likely to be incurred for the education and marriage of the children of the displaced person dependant upon him.

(2) Where a displaced creditor is a minor, or a widow or a person who, by reason of any physical disability, is permanently disabled from earning his livelihood, the Tribunal may direct that any instalment payable to him or her shall be twenty-five per cent. higher than what would otherwise have been directed to be paid, and where it does so, it shall also direct that the instalments of other decree-holders shall be proportionately reduced.

SECTION 34: VARIATION OF MAINTENANCE ALLOWANCES

Where a displaced debtor has been ordered to pay an allowance periodically to any person for his maintenance under any decree or order of a Court, or is liable to pay such allowance under any agreement voluntarily entered into, the rate at which such allowance is payable may be varied by the Tribunal on application made to it in this behalf, if in view of the change in the circumstances of the displaced debtor, the Tribunal thinks that such variation is necessary, and such variation shall have effect for such period as the Tribunal may direct, notwithstanding anything in any decree, order or agreement to the contrary.

SECTION 35: TAXATION OF LAWYER'S FEES

In directing payment of costs by any person as costs in respect of fees to any legal practitioner employed in any proceeding before it, the Tribunal shall be guided by any rules for the time being in force regulating the payment of such costs in proceedings of a similar nature before the ordinary Civil Courts, and shall not award more than one-half of what in its opinion the costs before the Civil Court would have been. "We have redrafted this clause so as to require the Tribunal to be guided by similar rules regulating payment of costs to legal practitioners in ordinary civil proceedings, the intention being that the costs should not exceed half the amount normally payable." - S.C.R.

SECTION 36: EXTENSION OF PERIOD OF LIMITATION

Notwithstanding anything contained in the Indian Limitation Act, 1908or in any special or local law or in any agreement.-

(a) any suit or other legal proceeding in respect whereof the period of limitation was extended by section 8 of the Displaced Persons (Institution of Suits) Act, 1948, and

(b) any suit or other legal proceeding for the enforcement of a claim against an insurance company not falling within the provisions of clause (a) in respect whereof the cause of  action had arisen, whether wholly or in part, in the territories now situate in West Pakistan and the institution of the suit or other legal proceeding has become barred by reason of a condition in the contract, which, but for the condition, would have been governed by the provisions contained in clause (a), may be instituted at any time within one year from the commencement of this Act.

SECTION 37: CURTAILMENT OF PERIOD OF LIMITATION FOR EXECUTION OF CERTAIN DECREES

Notwithstanding anything contained in section 48 of the Code of Civil Procedure, 1908-, or in any other law for the time being in force, no order for the execution of a decree in respect of a debt against a displaced person shall be made upon an application presented after the expiration of-

(a) in the case of decrees passed before the commencement of this Act, six years from such commencement;

(b) in the case of decrees passed after the commencement of this Act, six years from the date of the decrees,

(c) in the case of decrees directing payment of money to be made at prescribed intervals or on certain dates, six years from the date of default in making the payment in respect of which the decree-holder seeks to have the decree executed: Provided that nothing in this section shall be construed as extending the limit of time for execution as provided in section 48-of the said Code for an application for the execution of a decree passed before the commencement of this Act.

SECTION 38: SALE OF IMMOVABLE PROPERTY IN EXECUTION

(1) Where in the execution of any decree for the recovery of a debt against a displaced person his immovable property is sought to be sold, the Court executing the decree shall, in the first instance, determine the market value of the property and. if the value so determined is less than or equal to the amount of the decree together with the proportionate amount of any prior encumbrance, the Court shall transfer the property to the decree-holder.

(2) If the value determined under sub-section (1) is greater than the amount of the decree together with the proportionate amount of any prior encumbrance, the Court shall determine the portion of such property the value of which is equal to the amount of the decree with the proportionate amount of such prior encumbrance, and may. if it is reasonable or convenient to do so transfer that portion to the decree-holder.

(3) Where any property is transferred under the provisions of this section to the decree- holder, the decree shall be deemed to be satisfied to the extent of the value of the properly so transferred: Provided that if the decree-holder does not desire to take the property or, in the opinion of the Court, it is not reasonable or convenient to transfer the property to him. the property may be sold by public auction, but irrespective of the price fetched at the public auction the market value of the property as determined under this section (and not the amount payable to the decree-holder out of the sale proceeds of the public auction) shall be deemed to be the amount which has been paid to the decree-holder in respect of the decree, and satisfaction thereof shall be entered accordingly.

SECTION 39: ENCOURAGEMENT OF SETTLEMENTS

If the displaced debtor and the creditor or, where there are more creditors than one, such number thereof as hold more than two-thirds in value of the debts due from the displaced debtor enter into an agreement for the adjustment of the liabilities, the Tribunal shall, if an application is made to it in this behalf, after giving due notice to the other creditors affected, adjust the remaining debts accordingly if the terms of the agreement are just and fair, and pass a decree accordingly.

SECTION 40: GENERAL PROVISIONS RELATING TO APPEALS

- Save as otherwise provided in section 41-, an appeal shall lie from -

(a) any final decree or order of the Tribunal, or

(b) any order made in the course of execution of any decree or order of the Tribunal, which if passed in the course of execution of a decree or order of a Civil Court would be appeal able under the Code of Civil Procedure, 1908-, to the High Court within the limits of whose jurisdiction the Tribunal is situate.

SECTION 41: RESTRICTIONS ON RIGHT OF APPEAL IN CERTAIN CASES

Notwithstanding anything contained in section 40-, where the subject-matter of the appeal relates to the amount of a debt and such amount on appeal is less than rupees five thousand, no appeal shall lie.

SECTION 42: PARTIES TO APPEALS

For the purpose of any appeal under this Act, it shall be sufficient if only such persons as, in the opinion of the appellant, are necessary parties to the appeal for the purpose of determining the real questions in controversy between them, are impleaded as respondents to the appeal: Provided that where it appears to the High Court at the hearing that any person who was a party to the proceeding before the Tribunal from whose decree the appeal is preferred but who has not been made a party to the appeal is interested in the result of the appeal, the Court may adjourn the hearing to a future date to be fixed by the Court and direct that such person be made a respondent.

SECTION 43: REGISTRATION OF CERTAIN SOCIETIES AND COMPANIES UNDER INDIAN LAW

"We think that in the case of a company it should be capable of recognition in India if more than 33 1 / 3 per cent. of its shares are being held by persons resident in India, and we have provided accordingly. We have also provided for an appeal from the order of a Registrar refusing to accord recognition to any company or society." - S.C.R.

SECTION 44: BAR OF FURTHER APPLICATIONS IN CERTAIN CASES

Subject to the other provisions contained in this Act, where an application made by a displaced debtor under section 5-or under sub-section (2) of section 11-, or by a displaced creditor under section 13-has been dismissed, no further application for the same purpose shall lie.

SECTION 45: AMENDMENT OF APPLICATIONS

Clerical or arithmetical mistakes in any application or in any schedule annexed thereto arising from any accidental slip or omission may at any time be corrected by the Tribunal, either of its own motion or on the application of any of the parties.

SECTION 46: SERVICE OF NOTICES

Every notice issued under this Act shall be served by registered post, acknowledgment due, unless the Tribunal for reasons to be recorded, directs service in any of the other modes specified in Order 5 of the First Schedule to the Code of Civil Procedure, 1908-

SECTION 47: EFFECT OF FAILURE ON THE PART OF DISPLACED DEBTOR TO DISCLOSE CERTAIN MATTERS

Where a displaced debtor has not mentioned in the relevant schedule to his application any debt owing by him or any property, movable or immovable, belonging to him, whether such property is liable to attachment or not liable to attachment at all, nothing contained in this Act shall prevent –

(a) in the case of the debt, the creditor from instituting any proceeding for the recovery thereof under any law for the time being in force other than this Act; and

(b) in the case of the property, from being attached or otherwise dealt with under any such law.

SECTION 48: PROCEEDINGS NOT TO ABATE ON DEATH OF DEBTOR

Notwithstanding anything contained in this Act, no proceeding before a Tribunal shall be deemed to abate by reason merely of the death of the debtor who is a party to the proceeding, and a decree may be passed notwithstanding the death and such decree shall have the same force and effect as if it had been passed before the death took place : Provided that the Tribunal on an application made in that behalf, shall cause the legal representative of the deceased debtor to be made a party to the proceeding, and any person so made a party may make any defence appropriate to his character as legal representative of the deceased debtor: Provided further that nothing contained herein shall be deemed to render the legal representative of the deceased debtor liable to satisfy the decree except to the extent to which any of assets of the deceased debtor have devolved on him.

SECTION 49: PAST TRANSACTIONS NOT TO BE AFFECTED

We have amplified this clause to make it clear that no debtor shall be entitled to any refund or any relief available to him under this Act where he has already discharged any of his debts." - S.C.R.

SECTION 50: DISPLACED DEBTOR NOT TO BE DEEMED INSOLVENT

Notwithstanding anything contained in any law for the time being in force relating to insolvency, no displaced debtor shall be deemed to be insolvent or to have been adjudicated as such within the meaning of any law for the time being in force relating to insolvency by reason only of his applying to get his debts adjusted under this Act, and no petition in insolvency shall lie against a displaced debtor in respect of any debt incurred by him before the 15th day of August, 1947.

SECTION 51: COMPROMISES OR ARRANGEMENTS BETWEEN BANKS AND THEIR DEBTORS NOT TO BE REOPENED IN CERTAIN CASES

Notwithstanding anything contained in this Act, no compromise or arrangement arrived at, whether before or after the commencement of this Act, between a displaced debtor and a bank relating to the repayment, discharge or satisfaction of any debt owing by the displaced debtor to the bank shall be reopened by the Tribunal, and nothing contained in this Act shall affect any such compromise or arrangement : Provided that there is in force in respect of the bank a compromise or arrangement between it and its own creditors or any class of such creditors which has been duly sanctioned by the Court under S. 153 of the Indian Companies Act, 1913, and Provided further that the particulars specified in clauses (c), (cc), (ccc), (i), (q), (r) and (s) of the proviso to sub-section (1) of section 60 of  the Code of Civil Procedure, 1908-, as amended by section 31-of this Act, shall not be liable to attachment or sale in any proceeding against the displaced debtor ."We have redrafted this clause so as to leave unaffected compromises or arrangements arrived at between a displaced debtor and any bank relating to the repayment of any debt owing by the displaced debtor. It has been represented to us that to do otherwise might affect adversely certain banks in their relation with their own creditors with respect to whom they have arrived at an arrangement with the sanction of the High Court. We have, however, provided as a matter of equity that the debtor of the bank should in all cases have the benefits conferred by clause 31 of this Bill (now S. 31) on displaced debtors generally." -- S.C.R.

SECTION 52: COMMUNICATION OF CONTENTS OF DECREES TO PRESCRIBED AUTHORITY

(1) Every Tribunal shall communicate to the prescribed authority, in such manner as may be prescribed, the amount of the prior charge declared under sub-section (3) of section 16-, and shall also forward to it a copy of the decree passed on the application of a displaced debtor under section 5-or sub-section (2) of section 11-and also of any order passed under sub-section (5) of section 32-, specifying the amount due to the creditor mentioned therein on the date of the order.

(2) The prescribed authority shall scale down the debts reported to him in accordance with sub-section (6) of section 32-and shall, subject to any rules made in this behalf, meet the prior charge of the secured creditor in accordance with sub-section (2) of section 16-in the first instance and thereafter distribute the balance of the compensation available for distribution within the meaning of sub-section (10) of section 32-rateably amongst the other decree-holders whose decrees have been reported to him: Provided that in making any such rateable distribution the prescribed authority shall have due regard to the provisions contained in sub-sec. (2) of section 33-.

(3) The balance from the amount of the compensation payable shall be refunded to the displaced debtor.

(4) Any amount paid by the prescribed authority to any decree-holder under the provisions of this section shall, to that extent, be a valid discharge of the debt due by the displaced debtor,

SECTION 53: APPLICATION OF THE LIMITATION ACT

Subject to the other provisions contained in this Act, the Indian Limitation Act, 1908shall apply to the institution of any proceeding under this Act, and, for the purpose of determining and computing the period of limitation prescribed by that Act in relation thereto, every application made under this Act shall be deemed to be a suit for the purpose of that Act.

SECTION 54: ORDER 38 OF THE FIRST SCHEDULE TO THE CODE OF CIVIL PROCEDURE NOT TO APPLY

Nothing contained in Order 38 of the First Schedule to the Code of Civil Procedure, 1908-, relating to arrest and attachment before judgment, shall apply to any proceeding under this Act.

SECTION 55: PROTECTION OF ACTION TAKEN IN GOOD FAITH

No suit, prosecution or other legal proceeding shall lie against the Government or any person, in respect of anything done or intended to be done by it or him in good faith in pursuance of this Act or of any rule or order made there under.

SECTION 56: DELEGATION OF POWERS

The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may also be exercised by such officer or authority subordinate to the Central Government or by the State Government or by any officer or authority subordinate to the State Government as may be specified in the direction.

SECTION 57: POWER OF CENTRAL GOVERNMENT TO MAKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules4for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the provisions contained in sub-section (1), the rules so made may provide for all or any of the following matters namely:-

(a) the additional particulars, if any, which an application under Section 5-, should contain;

(b) the form in which notices under this Act may be issued;

(c) the form in which applications under section 10-orsection 13-may be made;

(d) the registers which should be maintained under this Act;

(e) the authorities required to be prescribed under this Act;

(f) the board or other authority to which any report under sub-sec. (2) of section 18-may be made and, the matters which such board or other authority should take into account in making its report.

SECTION 58: POWER OF STATE GOVERNMENT TO MAKE RULES

The State Government may, by notification in the Official Gazette, make rules providing for -

(a) the distribution of business amongst the various Tribunals5within the State;

(b) the manner in which copies of documents produced before the Tribunals should be certified;

(c) the returns to be made by the Tribunals and the authorities to which they may be so made.

SECTION 58A: LAYING OF RULES

(1) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature.

(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made. the rule shall thereafter have effect only in such modified form or be of no effect, 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.]

SECTION 59: REPEALS

Save as otherwise provided in section 36 of the Displaced Persons (Institution of Suits) Act, 1948" and the Displaced Persons (Legal Proceedings) Act, 1949shall cease to apply to displaced persons as defined in this Act.

Footnotes:

1. The dates so appointed are 10thDecember, 1951 in the States of Delhi (now a Union territory), Ajmer (now in Rajasthan), Punjab (now split up into Punjab and Haryana and Union Territory of Chandigarh), Uttar Pradesh and Bombay (now divided into States of Gujarat and Maharashtra) : see Notification No. 68 (21 )/51-Prop., dated 7th December, 1951 .Gazette of India, 1951, Extraordinary, Pt. I, Sec. 1 p.503; and in all other States of India 20th December, 1951 : see Notification No. S.R.0. 2005, dated 13th December, 1951, Gazette of India, Extraordinary, 1951, Pt. II, Sec. 3, p. 1489.

2. For such notifications, see S.R.O. 609, dated 27-3-1952 in Gazette of India, 1952. Pt. II. Sec. 3, p. 624. S.R.O. 1005 dated 28-5-1952 on p. 889 and S.R.O. 347 date 29-1 1-1952 in , 1953, Pt. II, Sec.3, p. 238.

3. For notification under sub-section ( 1 )(d), see S.R.O. 350, dated 13th February 1953, Gazette of India, 1953, Pt. II. S 3. p. 239.

4. For the Displaced Persons (Debts Adjustment) Rules, 1951, see S.R.O. 53 dated 8-1-1952 published in Gazette of India, 1952, Pt. II, S.3. p. 80. For the Insurance Claims Board Rules, 1952, see S. R.O. 2000 dated 27-11-1952, . Pt. II Sec. 3. p. 1764 (Amended by S. R. O. 2696, dated 28-7-54: S. R.O. 3408, dated 14-10-57: G.S.R. 230, dated 6-3-1958). For Insurance Claims Board (Procedure) Order 1957, see Gaz. Ind., 1957. Pt. II. S. 3. p. 472 (Amended by S. R.O. 1709, dated 16-5-1957).

5. For such rules applicable to Part C States (now Union Territories) of Delhi, Himachal Pradesh, Manipur and Tripura, see Gaz. of Ind.,1952, Pt. II.S. 3, p. 85.

DISLACED PERSONS (VERIFICATION OF CLAIMS) SUPPLEMENTARY RULES, 1954

RULE 01: SHORT TITLE

— These rules may be called the Displaced Persons (Verification of Claims) Supplementary Rules, 1954.

RULE 02: DEFINITIONS

(1) In these rules—

(i) "claimant" means a person whose claim has been registered under the principal Act, and includes a person who has migrated to India from any tribal area and has submitted a claim to any authority under the principal Act ;

(ii) "form" means a form specified in the Schedule ;

(iii) "legal practitioner" means an advocate, vakil or attorney of any High Court, or a pleader or a revenue agent and includes any person who has at any time practised before any Court ;

(iv) "legal representative" means a person who in law represents the estate of a deceased claimant, or on whom such estate devolves on the death of the claimant;

(v) "the Ordinance" means the Displaced Persons (Claims) Supplementary Ordinance, 1954 (Ordinance No. 3 of 1954) ;

(vi) "proceeding" means—

(a) the hearing of a claim under Sec. 4 for the purpose of its verification, and

(b) the hearing of an application for revision under the proviso to sub -section (3) of Sec. 4 or an application for special revision under Sec. 5, or the initiation of any proceeding by the Chief Settlement Commissioner of his own motion under any of the aforesaid  sections, and includes all steps taken under the Ordinance or these rules in pursuance of such claim or application for revision or special revision as the case may be ;

(vii) 'revising authority" means the Chief Settlement Commissioner and includes any officer to whom all or any of the functions of the Chief Settlement Commissioner may be delegated under sub-section (2) of Sec. 10 ;

(viii) "Schedule" means a Schedule annexed to these rules; and

(ix) "section" means a section of the Ordinance.

(2) All words and expressions used in these rules but not defined shall have the meanings respectively assigned to them in the Ordinance or in the principal Act.

RULE 03: ADDITIONAL POWERS OF THE CHIEF SETTLEMENT COMMISSIONER AND OTHER OFFICER APPOINTED UNDER SEC. 3

— The Chief Settlement Commissioner, the Joint or Deputy Chief Settlement Commissioner and every Settlement Commissioner, Additional Settlement Commissioner and Settlement Officer, shall have the same powers as are vested in a civilcourt under the Code of Civil Procedure, 1908 (Act 5 of 1908), when trying a suit in respect of the following matters, namely :

(a) ordering the substitution of the legal representative or legal representatives for a claimant in the event of the death of such claimant and the continuance of the proceeding;

(b) ordering, with the consent of the claimants concerned, consolidation of proceedings in two or more cases in which the evidence adduced on behalf of the claimants may be similar and common questions of law and facts are involved ;

(c) correcting any clerical of arithmetical mistakes in any order or proceeding, or errors arising therein from any accidental slip or omission ;

(d) reviewing an order on any of the following grounds, namely :

(i) the discovery of any new or important matter or evidence which after the exercise of due diligence was not within the knowledge of, or could not be produced by, the claimant at the time when the claim was verified ;

or

(ii) on account of some mistake or error apparent on the face of the record; or

(iii) for any other sufficient reason ;

(e) ordering the deposit of postal and other charges for the summoning of witness within a time to be specified in the order.

RULE 04: POWER OF CHIEF SETTLEMENT COMMISSIONER TO TRANSFER CLAIMS TO SETTLEMENT OFFICER FOR VERIFICATION

— Subject to the provisions of rule 5, any claim transferred by the Chief Settlement Commissioner to a Settlement Officer, may be verified by such Settlement Officer:

Provided that the claim so transferred had remained unvverified for reasons other than the default of the claimant2* * *.

RULE 05: CLASSES OF PROPERTY IN RESPECT OF WHICH CLAIMS MAY BE VERIFIED

—The classes of property in respect of which claims may be verified under these rules shall be the same as under the principal Act and the rules made thereunder, that is to say—

(1) any immovable property situated within an urban area in West Pakistan;

(2) any immovable property in West Pakistan, which forms part of the assests of an industrial undertaking and is situated in any area other than an urban area;

(3) any other immovable property in West Pakistan comprising of a building situated in any area other than an urban area :

Provided that where a claimant has been allotted any agricultural land in India and that—

(a) where the agricultural land so allotted exceeds four acres, the value of the building in respect of which the claim is made shall not, according to the present estimated cost of construction, be less than Rs. 20,000;

(b) where the agricultural land so allotted does not exceed four acres, the value of the building in respect of which the claim is made, shall not, accordingto the present estimated cost of construction, be less than Rs. 10,000;

Explanation 1.—In this rule, the expression "building" includes—

(a) any structure in the immediate vicinity of a building without which the building cannot be conveniently occupied or enjoyed;

(b) any garden, ground, enclosure and out-houses, appurtenant to such building. Explanation II.— For the purposses of this rule, a person shall be deemed to have been allotted any agricultural land in India if he is allotted such land in any manner whatsoever, whether on temporary or quasi-permanent basis.

(4) any agricultural land in any part of West Pakistan other than the province of West Punjab, owned by a claimant not being a person of Punjabi extraction, and in respect of which agricultural land, no allotment has been made under any scheme for the time being in force relating to the quasi-permanent allotment of lands in the State of Punjab and the Patiala and East Punjab States Union.

Explanation.—The expression "a person of Punjabi extraction" means a land-holder who or whose ancestor migrated in 1901 or at any time thereafter as a colonist from the Punjab to the province of the North West Frontier, Sind or Baluchistan or to any State adjacent to any of the aforesaid provinces acceding to the Dominion of Pakistan.

RULE 06: NOTICE TO CLAIMANTS

—At least 15 days before the date of the hearing of a claim, the Settlement Officer shall cause to be sent to the claimant a notice in Form "A" informing him about the date of hearing.

RULE 07: APPEARANCE BEFORE SETTLEMENT OFFICER

— Subject to the provisions of rule 21, a claimant may appear before a Settlement Officer either in person or through an agent duly authorised by him in writing to appear on his behalf:

Provided that where the claimant is a minor or other person under a disability, he may appear through a guardian or a next friend.

RULE 08: EXPARTE DETERMINATION OF CLAIMS IN THE EVENT OF NON-APPEARANCE OF CLAIMANTS

— Where a claimant, after a notice under rule 6 has been duly served upon him, fails to appear either in person or through a duly authorised agent on the date of hearing, the Settlement Officer shall determine the claim ex parte :

Provided that the Settlement Officer may, on application made to him within 60 days of the exparte order, reopen the case if he is satisfied that there was sufficient cause for non-appearance of the claimant on the date fixed for the hearing.

RULE 09: WITNESS AND ASSESSORS

(1) A party to any proceeding, who wants any witnesses to be summoned, shall file a list of witnesses with their complete addresses and shall also deposit a sum of money sufficient to cover the diet money and travelling expenses of the witnesses. A list in duplicate of documents which any witness is called upon to produce shall also be field.

(2) Summons to witnesses shall issue in Form "B", and summons to assessors in Form "C" and and all the provisions of Order XVI of the Code of Civil Procedure, 1908 (Act 5 of 1908) shall, so far as may be, apply to such summons.

(3) Witnesses and assessors who attend any proceeding shall be paid diet money and traveling allowances—

(a) in the case of witnesses, in accordance with the scale prescribed in this behalf for civil suits in the locality where the proceeding is being conducted;

(b) in the case of assessors, in accordance with the scale prescribed for assessors in a Sessions case by the High Court of the State where the proceeding is held.

RULE 10: PERSONS ABROAD OR IN ARMED FORCES, ETC.

(1) A claimant serving in the Armed Forces or residing outside India may in lieu of appearing in a proceeding either personally or through an authorised agent make a statement on oath—

(a) in the case of a claimant serving in the Armed Forces, before the Commanding Officer of his Regiment;

(b) in the case of a person residing in a country outside India, before the representative of the Government of India in that country or an officer nominated by such representative for the purpose.

(2) The Commanding Officer or the representative of Indian or such nominated officer, as the case may be, shall forward to the Settlement Officer conducting the proceeding, the statements recorded, together with documents, if any, that may be produced by the claimant, and the depositions of the claimant and the documents produced by him shall form a part of the record of the case, notwithstanding anything contained in rule 8.

RULE 11: PUBLIC TO HAVE RIGHT OF ACCESS AT THE HEARING OF CLAIMS

—A Settlement Officer shall hold every proceeding under these rules in an open place to which the public may generally have access so far as the same can conveniently be done :

Provided that the Settlement Officer may, if he so thinks fit, order at any stage of the proceeding of any particular case, that the public generally or any particular person shall not have access to, or be, or remain in the room or building used by the Settlement Officer for the purpose of hearing the claim.

RULE 12: APPLICATION FOR REVISION

(1) A claimant may within one month of the date of any order made by a Settlement Officer make an application for revision of that order to the Chief Settlement Commissioner.

(2) Every such application for revision shall be accompanied by a copy of the order of the Settlement Officer against which it has been field and shall set forth concisely and under distinct heads the ground of objection to such order with any argument or narrative.

(3) Every such application shall be accompanied by a treasury receipt or a crossed Indian Postal Order payable to the Chief Settlement Commissioner for a sum of one rupee : Provided that where the applicant resides outside India, the application may be accompanied by a receipt of the amount of fee granted by any officer authorised in this behalf by the representative of India in the country in which the applicant resides.

RULE 13: PRESENTATION

—An application for revision may be presented either in person or through an agent duly authorised in writing in this behalf by the applicant, or may be sent by registered post.

RULE 14: REGISTRATION OF APPLICATIONS FOR REVISION

—Every application for revision made under rule 12 and every case in which a revising authority suo mota exercises the power of revision conferred by the proviso to sub-section (3) of Sec. 4 shall be registered in a register to be maintained for the purpose in Form "D".

RULE 15: HEARING OF APPLICATION FOR REVISION

(1) The revising authority after sending for the record of the case, and if necessary, after giving the applicant an opportunity of being heard, may pass such order on the application as it thinks fit.

(2) Where a Settlement Officer has disposed of a claim on a preliminary point of law or fact and the revising authority disagrees with the opinion of the Settlement Officer, the revising authority shall remand the case to the Settlement Officer with the direction that the claim may be decided on its merits :

Provided that where the Settlement Officer who originally decided the case. is not available, the revising authority may send the case to such other Settlement Officer as it may deem fit.

(3) Where the order of the revising authority affects more than one claimants, the revising

authority may vary the order of a Settlement Officer in the case of all such claimants.

RULE 16: PROCEDURE TO BE FOLLOWED IN DISPOSING OF APPLICATIONS FOR REVISION

—Subject to the provisions of rules in this Chapter, the provisions of rules in Chapter II shall, so far as may be, apply in relation to the disposal of applications for revision under this Chapter as they apply in relation to the disposal of claims under Chapter II.

RULE 17: PROCEDURE TO BE FOLLOWED BY THE CHIEF SETTLEMENT COMMISSIONER IN EXERCISE OF THE SPECIAL REVISIONARY POWERS UNDER SEC. 5

—Except as provided in rule 18, the provisions of rules in Chapters II and III shall, so far as may be, apply in relation to the disposal of applications for special revision under Sec. 5 as they apply in relation to the disposal of application for revision under Chapter III.

RULE 18: SPECIAL REVISION OF VERIFIED CLAIMS UNDER CL. (B) OF SUB SUB--SECTION (1) OF SEC. 5

— The Chief Settlement Commissioner may, while exercising the powers of special revision conferred on him by Cl. (b) of sub-section (1) of Sec. 5, call for the record of any verified claim and may pass any order in revision in respect of such verified claim in such manner as he thinks fit, if he is satisfied that such order should be passed on one or the other of the following grounds, namely :

(i) the discovery of any new matter or documentary evidence which after the exercise of due diligence was not within the knowledge of or could not be produced by the claimant at the time when the claim was verified; or

(ii) correction of any clerical or arithmetical mistake apparent on the face of the record; or

(iii) gross or material irregularity or disparity in the valuation of the claim; or

(iv) any other sufficient reason :

3[Provided that the Chief Settlement Commissioner shall not entertain or take into consideration any application or respresentation made to him under this rule by any claimant, if such application or representation is made after the 30th day of April, 1954].

RULE 19: SERVICE OF NOTICE OR ORDER

(1) Every notice or order under these rules shall be served upon the claimant by pre-paid

registered post with an acknowledgment due, at the address mentioned in the claim file or at such other address as may be supplied by the claimant.

(2) Every notice or order sent as aforesaid, shall be deemed to have been served upon the person to whom it is addressed at the time when the letter containing the same would be delivered to him in the ordinary course of business.

RULE 19A: SUBSTITUTED SERVICE IN CASE OF UNTRACEABLE CLAIMANTS

—4

(1) Where a notice or order served on any claimant under rule 19 is returned undelivered before the date fixedfor hearing, or where the Settlement Officer or Revising Authority is satisfied that there is reson to believe that the notice or order cannot be served in the manner provided in rule 19, the Settlement Officer, or the Revising Authority, as the case may be, shall order the notice or order to be served on the claimant by notice in Form E published in a newspaper circulating within the area in which the claimant is stated to have resided or to be carrying on business according to the address given in the claim file of such claimant. A copy of the notice shall also be served by affixing a copy thereof in some conspicuous place in the office of the Chief Settlement Commissioner at (Metcalfe House), Delhi and also in the office of the officer hearing the claim. Such notice shall contain the name and address of the claimant, the index number of the claim, the place, time and date of hearing and the name and designation of the officer hearing the claim.

(2) The date fixed for hearing the claim shall not be less than 60 days from the date on which the notice in Form E is first published in the newspaper.

(3) A notice in Form E may be addressed to one or more claimants.

(4) Where service of a notice or order is substituted by an order of the Settlement Officer, or a Revising Authority, under this rule, such service shall be as effectual as if it had been made on the claimant personally.

(5) Where a claimant fails to appear either in person or through an authorised agent before the officer hearing the claim on the date fixed for hearing in response to the notice served upon him under this rule, the claim shall be determined exparte.]

RULE 20: CERTAIN PROVISIONS OF THE LIMITATION ACT TO APPLY

— The provisions of Secs. 5 and 12 of the Indian Limitation Act, 1908 (9 of 1908), so far as may be, apply to every proceeding in respect of which no period of limitation is prescribed under these rules.

RULE 21: LEGAL PRACTITIONER NOT TO APPEAR EXCEPT WITH PERMISSION

—No legal practitioner shall appear in any proceeding under these rules except with the permission of, and for the reasons to be recorded in writing by, the officer conducting the proceeding.

RULE 22: STATEMENT ON OATH

—All statements made in any proceeding under these rules shall be on oath.

RULE 23: RETURN OF ORIGINAL DOCUMENTS

—A Settlement Officer may on application made by a claimant return any original document filed by the claimant if the claimant supplies at his own expense a true copy of such document made by any person under the direction of the Settlement Officer.

RULE 24: FEES

6—( 1 ) Where any application is made for the grant of a copy of any order passed under these rules or under the Displaced Persons (Verification of Claims) Rules, 1950, or of a copy of any deed, will, map, chart, or other document filed by any claimant for the purposes of verification of his claim, it shall be granted on the payment of the following fee, namely:

(i) in the case of a map or chart .. Re. 1.00 (ii) in any (2) Where an applicant does not furnish Index No. of the claim along with the application for the grant of a copy under this rule, or furnishes an incorrect Index No., an additional fee of rupee one shall be chargeable as searching fee.

(3) All fees chargeable under this rule shall be paid in the form of an Indian Postal Order for the amount of the fee crossed in the name of the Chief Settlement Commissioner.]

RULE 24A: FEES FOR GRANT OF COPIES OF REVENUE RECORDS

7—

(1) The Chief Settlement Commissioner may, on an application made by a claimant himself or by any other person authorised by the claimant in this behalf or by the successor-in-interest of any deceased claimant, on payment of a fee as specified in the Schedule hereto annexed, supply a copy of the revenue record, namely, jamabandis, number-shumaris and any document connected therewith as received from the Government of Pakistan in respect of agricultural land left by the claimant in West Pakistan.

(2) Every such application shall contain full particulars of the record of which the copy is required and shall be accompanied by an Indian Postal Order of the value of Re. 1.00 duly crossed and payable to the Chief Settlement Commissioner. The fee of Re. 1.00 is payable for each separate record relating to a village or deh.

(3) The fee shall not be refunded even if examination of the record shows no entry in the name of the applicant. In case where no entry in the name of the claimant exists, the applicant shall be informed accordingly.

(4) On receipt of the application under sub-rule (2) the Chief Settlement Commissioner, if the amount of fee sent by the applicant under that sub-rule is found inadequate, shall give notice to the applicant informing the applicant of the total fee payable and the manner in which it shall be made good. If the deficit is not so made good within a period of 30 days from the date of notice, the application shall be filed.

(5) The copy when ready shall be delivered to the applicant personally or to his duly authorized agent or sent by post, if so desired by the applicant.

(6) In the case of persons living in any country outside India, a receipt for the amount of fee issued by an officer authorised in this behalf by the representative of India in that country shall be sufficient evidence about the payment of fee provided such a receipt is enclosed with the application.

Schedule Rates for Fees For copies of revenue records of lands situate in Bahawalpur, North In addition to above a fee of 50 naye paise shall be payable for every copy supplied.]

RULE 25: RETURNS AND STATEMENTS

— The Chief Settlement Commissioner, Joint Chief Settlement Commissioner, Settlement Commissioner or the Additional Settlement Commissioner may, from time to time, call for such returns and statements from any Settlement Officer as he may deem fit.

RULE 26: PROVISIONS OF THE CODE OF CIVIL PROCEDURE TO APPLY WHERE NO SPECIFIC PROVISIONS ARE MADE IN THESE RULES

—In so far as these rules make no provision or make insufficient provision, in respect of any matter the appropriate provision of the Code of Civil Procedure, 1908 (Act 5 of 1908) shall, so far as may be, apply to that matter in relation to any proceeding under the Ordinance or these rules.

Footnotes:

2. Omitted by S.R.O. 1155, dated 31st March, 1954.

3. Subs. by S.R.O. 1155, dated 31st, March, 1954.

4. Ins. by S.R.O. 2865, dated 20th August, 1954.

6. Subs. by G.S.R. 606, dated 16th May, 1959.

7. Ins. by S.R.O. 3965. dated 30th November, 1957.

DISPLACED PERSONS (DEBTS ADJUSTMENT) RULES, 1951.

RULE 01: SHORT TITLE

— These rules may be called the Displaced Persons (Debts Adjustment) Rules, 1951.

RULE 02: DEFINITIONS

— In these rules, unless the context otherwise requires,—

(a) "form" means a form in the Schedule to these rules ;

(b) "section" means a section of the Act;

(c) "the Act" means the Displaced Persons (Debts Adjustment) Act, 1951.

RULE 03: ADDITIONAL PARTICULARS TO BE GIVEN IN AN APPLICATION UNDER SEC. 5.

— Besides the particulars specified in sub-section (2) of Sec. 5 an application under sub-section (1) of that section shall contain the following additional particulars, namely—

(a) where the applicant or respondant is a minor or a person of unsound mind, a statement to that effect;

(b) a statement of any fact or circumstance which in the opinion of the applicant should be taken into account by the Tribunal in the adjustment of the debts.

RULE 04: FORM OF NOTICE UNDER SEC. 5

—The notice referred to in Sec. 5 shall be in Form A.

RULE 05: FORM AND CONTENTS OF APPLICATION UNDER SEC. 10

— Every application by a displaced person under Sec. 10 shall be as nearly as may be, in the form of a plaint in a suit under the Code of Civil Procedure, 1908 (Act 5 of 1908), and shall contain the following particulars, namely—

(a) the name of the Tribunal to which the application is made ;

(b) the name, description and place of residence of the displaced debtor against whom the

application is made ;

(c) where the applicant or the respondent is a minor or a person of unsound mind, a statement to that effect ;

(d) the amount of the debts due from the displaced debtor and full particulars relating thereto;

(e) a statement of any such fact or circumstance as may in his opinion be helpful to the Tribunal in the determination of the application.

RULE 06: FORM OF NOTICE UNDER SEC. 11

— The notice referred to in Sec. 11 shall be in form B.

RULE 07: FORM AND CONTENTS OF APPLICATION UNDER SEC. 13

— Every application by a displaced creditor under Sec. 13 against a person who is not a displaced debtor shall be, as nearly as may be, in the form of a plaint in a suit under the Code of Civil Procedure, 1908 (Act 5 of 1908), and shall contain the following particulars, namely—

(a) the name of the Tribunal to which the application is made ;

(b) the name, description and place of residence of the applicant ;

(c) the name, description and place of residence of the respondent ;

(d) where the applicant or respondent is a minor or a person of unsound mind, a statement to that effect ;

(e) the amount of debts due from the displaced debtor and full particulars relating thereto, and

(f) a statement of any such fact or circumstance as in the opinion of the applicant, may be helpful to the Tribunal in the determination of the application.

RULE 08: FORM OF NOTICE UNDER SEC. 14

— The notice referred to in Sec. 14 shall be in Form C.

RULE 08A: AUTHORITY UNDER SEC. 52

²—The authority for the purpose of Sec. 52 of the Act shall be the Chief Settlement Commissioner, Ministry of Rehabiliation, New Delhi.]

RULE 09: REGISTERS

—The following registers shall be maintained by every Tribunal, namely—

(a) a separate register in Form D of applications under each of the Sees. 5, 10, 13 and 18 ; and

(b) a register in Form E of notices referred to in rules 4, 6 and 8.

Footnotes:

2. Ins. by S.R.O. 1967, dated 15th November, 1952.