ANDHRA PRADESH AGRICULTURAL INDEBTEDNESS (RELIEF) ACT, 1977

7 of 1977

30th April, 1997

An Act to provide relief from indebtedness to agricultural labourers, rural artisans and small farmers in the State of Andhra Pradesh and for matters connected therewith Be it enacted by the Legislature of the State of Andhra Pradesh in the Twenty eighth Year of the Republic of India as follows

CHAPTER 1 Preliminary

Section 1 Short title, extent and commencement

(1) This Act may be called the Andhra Pradesh Agricultural Indebtedness (Relief) Act, 1997

Section 2 Declaration

It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in Article 46 of the Constitution

Section 3 Definitions

In this Act, unless the context otherwise requires,

(b) 'agricultural labourer' means a person who does not hold any agricultural land and whose principal means of livelihood is by manual labour on agricultural land, in the capacity of a labourer on hire or on exchange, whether paid in cash or in kind or partly in cash and partly in kind;

(c) 'agricultural land' means land used for purposes of agriculture and which is assessed by the Government to land revenue, but not being land appurtenant to a re ntial building situate within a Municipality or Cantonment;

(d) 'annual household income' means the aggregate of the annual income from all sources of all the members of a family;

(e) 'appellate tribunal' means the Appellate Tribunal constituted under sub section (2) of section 8;

(f) 'bank' means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949, (Central Act, 10 of 1949) and includes the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, (Central Act 38 of 1959), a corresponding new bank as specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act,(Central Act 5 of 1970), the Agricultural Refinance and Development Corporation established under the Agricultural Refinance and Development Corporation Act 1963, (Central Act 10 of 1963), a Regional Rural Bank established under the Regional Rural Banks Act,1976, (Central Act 21 of 1976), any banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949, (Central Act 10 of 1949), and any other financial institution which may be notified in this behalf by the State Government;

(g) 'co-operative society' means a co operative society including an agricultural development bank registered or deemed to be registered under the Andhra Pradesh Co-operative Societies Act, 1964 (Act 7 of 1964);

(h) 'creditor' means a person from or in respect of whom the debtor has borrowed or incurred a debt and includes his heirs, legal representatives and assigns;

(j) 'debtor' means an agricultural labourer, a rural artisan or a small farmer, who has borrowed or incurred any debt before the commencement of this Act;

(k) 'dry land' means land registered as dry, manawari, asmantari baghat or garden land, or special rate dry land, in the land revenue accounts of the Government or assessed as such; and includes any other agricultural land excluding wet land;

(l) 'family' in relation to a person, means the individual, the wife or husband, as the case may be, of such individual and their unmarried minor children; Explanation: For the purpose of this clause minor means a person who has not completed his or her age of eighteen years:

(m) 'Government' means the State Government;

(n) 'interest' means any amount or other thing paid or payable in excess of the principal sum borrowed or pecuniary obligation incurred, or where anything has been borrowed in kind in excess of what has been so borrowed, by whatsoever name such amount or thing may be called, and whether the same is paid or payable entirely in cash or entirely in kind or partly in cash and partly in kind and whether the same is expressly mentioned or not in the document or contract, if any;

(o) 'notification' means a notification published in the Andhra Pradesh Gazette: and the word notified shall be construed accordingly:

(p) 'person' means an individual or a family:

(q) 'prescribed' means prescribed by rules made by the Government under this Act:

(r) 'rural 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 includes a * [fisherman and any] person who normally earns his livelihood by practising a craft either by his own labour or by the labour of all or any of the members of his family in rural area:

(s) 'scheduled tribes' shall have the meaning assigned to it in clause (25) of Article 366 of the Constitution

(u) 'Tahsildar' includes a Deputy Tahsildar in independent charge of a taluk or sub taluk and any other officer of the Revenue Department not below the rank of a Deputy Tahsildar empowered by the Government to exercise the powers and perform the functions of Tahsildar under this Act;

(v) 'transferee of the creditor' includes any subsequent transferee or an assignee or any person in possession of the property pledged or mortgaged;

(w) 'Tribunal' means a tribunal constituted under sub section (1) of section 8;

(x) 'wet land' means land registered as wet, single crop wet, double crop wet, compounded double crop wet or special rate wet land, in the land revenue accounts of the Government or assessed as such

CHAPTER 2 Relief from indebtedness

Section 4 Discharge of debts and relief to debtors

(1) Notwithstanding anything in the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938 the Andhra Pradesh (Telangana Area) Money Lenders Act, 1349F, the Andhra Pradesh (Andhra Pradesh (Andhra Area) Pawn Brokers Act, 1943, the Andhra Pradesh (Telangana Area) Agricultural Debtor Relief Act, 1956, the Andhra Pradesh (Scheduled Area) Money Lenders Regulation, 1960, the Andhra Pradesh Indebted Agriculturists, Landless Labourers and Artisans (Temporary Relief) Act,1996 or any other law for the time being in force or any contract or other instrument having the force of law and save as otherwise provided in this Act with effect on and from the commencement of this Act, every debt, including interest, if any, owing to any creditor by an agricultural labourer, a rural artisan or a small farmer shall be deemed to be wholly discharged

Section 5 Creditors to file statement in cases of property pledged

(1) Every creditor referred to in clause (a) of sub section (3) of section 4 shall, within such period as may be prescribed, furnish to the Tribunal having jurisdiction over the area where such creditor has his ordinary place of business, a statement in such form as may be prescribed containing the names of all persons who have pledged movable property with him, the nature and description of such property, the amount advanced and due as on the commencement of this Act, the rate of interest and such other particulars as may be prescribed

(2) A debtor referred to in clause (a) of sub section (3) of section 4 may also make an application to the Tribunal having jurisdiction over the area where his creditor has his ordinary place of business for an order for the delivery of the movable property pledged by the debtor

(4) Where the movable property pledged by the debtor is in the possession of any transferee of the creditor, the creditor shall redeem the said property from such transferee and produce it on or before the date specified in the order referred to in sub section (3)

(6) After such production or recovery or deposit of the movable property pledged, the Tribunal shall deliver the said property to the debtor

(7) Pending determination of the question under sub section (3) no creditor or the transferee of the creditor shall sell or pledge or other wise dispose of any movable property pledged by the debtor

(9) The provisions of sections 100 and 165 of the Code of Criminal Procedure, 3, relating to search and seizure shall, so far as may be, apply to searches and seizures under sub sections (5) and (8)

Section 6 Debtors to apply in certain cases

(1) A debtor referred to in clause (b) of sub section (3) of section 4 may make an application to the Tribunal having jurisdiction over the area within which such debtor ordinarily re s, for an order releasing the mortgaged property and for the grant of a certificate of redemption

(3) Pending orders under sub section (2), no creditor or the transferee of the creditor shall transfer or otherwise assign his interest in, or exercise his right of foreclosure in respect of the property mortgaged by the debtor

(4) Where the mortgaged property has been transferred or any right therein has been assigned to any bank by the creditor, the Tribunal shall recover from the creditor such amount as is due to such bank in respect of the said mortgaged property, as if it were in arrear of land revenue, and shall pay the same to the bank

Section 7 Appeals

Any person aggrieved by any order or decision made by the Tribunal under section 5 or section 6 may within sixty days from the date of communication of the order or decision to him appeal to the Appellate tribunal subject to payment of such fees as may be prescribed

CHAPTER 3 Miscellaneous

Section 8 Constitution of Tribunals and Appellate Tribunals

xxxxx

Section 9 Powers of Tribunals and Appellate Tribunals

(1) The Tribunal and the Appellate Tribunal shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 for summoning and enforcing the attendance of any person and examining him on oath and for requiring production of any document

(2) 1 In any proceedings under this Act any party may be represented by an agent authorised in writing, except by a legal practitioner as defined in section 2 of the Advocates Act, 1961

(3) The procedure to be followed by the Tribunal or the Appellate Tribunal in any proceedings before it, shall, subject to the provisions of this Act, be in accordance with such rules as may be prescribed

Section 10 Execution of order or decision of Tribunals and Appellate Tribunals

The order or decision of the Tribunal or the Appellate Tribunal made under this Act shall be executed by the Civil Court having jurisdiction as if were a decree or order of that Court

Section 11 Penalty

(1) Any person failing to furnish the statement under section 5 or to comply with the order made or direction given under that section or section 6 or otherwise contravening the provisions of either of the said sections shall be punished with imprisonment for a term which shall not be less than three months but which may extend to one year and with fine which shall not be less than one thousand rupees but which may extend to five thousand rupees

(2) Every offence punishable under sub section (1) shall be cognizable

(3) Every offence punishable under sub sec (1) shall be tried in a summary way and the provisions of sections 262 to 265 (both inclusive) of the Code of Criminal Procedure, 3, shall, as far as may be, apply to such trial

Section 12 Offences by companies

xxxxx

Section 13 Burden of proof

In any suit or proceeding, the burden of proving that the debtor is not entitled to the protection of this Act shall, notwithstanding anything in any law for the time being in force, lie on the creditor

Section 14 Bar of jurisdiction of Civil Courts

(1) No Civil Court shall have jurisdiction in respect of any matter which the Tribunal or the Appellate Tribunal is empowered by or under this Act to determine

(2) No order passed or proceeding taken by an officer or authority under this Act shall be called in question in any court of Law

Section 15 Protection of action taken in good faith

No suit, prosecution or other legal proceeding shall lie against any officer or authority for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder

Section 16 Power to make rules

(1) The Government may, by notification, make rules for carrying out all or any of the purposes of this Act

(2) Every rule made under this Act shall immediately after it is made, be laid before each House of the State Legislature if it is in session and if it is not in session in the session immediately following, for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiration of the session in which it is so laid or the session immediately following both Houses agree in making any modification in the rule or in the annulment of rule, the rule shall, from the date on which the modification or annulment is notified have effect only in such modified form or shall stand annulled, 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 17 Effect of other laws

Save as otherwise provided in this Act, the provisions of this Act shall be in addition to and not in derogation of any other law for the time being in force

Section 18 Power to remove difficulties

(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by general or special order, published in the Andhra Pradesh Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to them to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiration of two years from the commencement of this Act

(2) Every order passed under sub section (1) shall be laid before each House of the State Legislature

Section 19 Repeal of Ordinance 25 of 1996

The Andhra Pradesh Agricultural indebtedness (Relief) Ordinance, 1996 is hereby repealed

RULE:

ANDHRA PRADESH AGRICULTURAL INDEBTEDNESS (RELIEF) RULES, 1977

In exercise of the powers conferred by sub section (1) of section 16 (1) of the Andhra Pradesh Agricultural Indebtedness (Relief) Ordinance, 6, (Ordinance 25 of 6) the Governor of Andhra Pradesh hereby makes the following rules

Rule 1 Short title

These rules may be called by the Andhra Pradesh Agricultural Indebtedness (Relief) Rules, 1977

Rule 2 Definition

In these rules, unless the context otherwise requires

(a) Ordinance means the Andhra Pradesh Agricultural Indebtedness (Relief) Ordinance, 1996

(b) form means a form appended to these rules;

(c) Schedule means the schedule appended to these rules;

(d) Section means a section of the Ordinance

Rule 3 Filing of statement and applications

(1) Every statement referred to in sub section (1) of section 5 shall be in Form I and shall be furnished on or before the * [15th of May, 1997] in duplicate either in person or by agent or may be sent by registered post, acknowledgment due to the Tribunal

(2) The Tribunal shall on receipt of such statement, return one copy there of to the creditor with an endorsement acknowledging its receipt

(3) An application under sub section (2) of section 5 or sub sec (i) of section 6 shall be filed se tely in respect of each creditor and shall be in duplication

Rule 4 Procedure to be followed by the Tribunal in inquiries

(1)On receipt of the statement referred to in sub section (1) of section 5 or the application under sub section (2) of section 5 or sub section (1) of section 6, the Tribunal shall fix, the date on which and the place and the time at which an inquiry in respect of the statement or the application will be held and shall issue notice thereof to the creditor and the debtor mentioned in the statement or the application, as the case may be

(2) The notice referred to in sub rule (1) shall be in Form 2 and shall be accompanied by relevant extracts from the statement or a copy of the application, as the case may be

(3) The notice referred to in sub rule (1) shall be served by delivering or tendering it to the party concerned, or to his agent, or to any adult member of his family, or where none of the above courses is practicable, by affixing it at the last known place of his re nce or by registered post, acknowledgment due

(4) The respondents shall be entitled to file a counter to the statement or the application within a period of ten days from the date of service of the notice referred to in sub rule (1) or within such further time as the Tribunal may for sufficient reason allow

(5) On the date fixed for the inquiry under sub rule (1) or on such subsequent date or dates to which the inquiry may be abjourned, the Tribunal shall give a reasonable opportunity to the parties to state their case and to adduce such evidence, both oral and documentary, as may be necessary, in support thereof, and shall thereupon pass such orders or grant such certificate as it deems fit

(7) The notice referred to in sub rule (6) shall be in writing and shall be served on party in person, or on his agent or shall be sent to him by registered post acknowledgment due

(8) The order referred to in sub clause (i) of clause (b) of sub section (5) of section 5 shall be in Form 3

(9) The certificate referred to in sub clause (i) of clause (b) of sub section (5) of section 5 shall be in Form 4

(10) The certificate referred to in clause (a) of sub section (2) of section 6 shall be in form 5 and shall be issued soon after the expiry of the period of appeal, and in case where an appeal is filed, as soon as the appeal is disposed of

Rule 5 Appeals

(1) Every appeal under section 7 shall be in writing and shall set forth concisely the grounds thereof and shall be presented either in person or by agent or may be sent by registered Post acknowledgment due to the Appellate Tribunal

(2) Every such appeal shall bear a court fee lable of Rs 5 and shall also bear a court fee lable or lables of the value calculated in accordance with the scale specified in the Schedule towards the process fee for the service of notice on the respondent or respondents and shall be accompanied by the original or an authenticated copy of the order of the Tribunal appealed against

(4) The notice referred to in sub rule (3) shall be in from 6 and shall in the case of a notice to the respondent be accompanied by a copy of the appeal

(5) The notice referred to in sub rule (3) shall be served in the same manner as the notice referred to in sub rule (3) of Rule 4

(6) The respondent shall be entitled to file a counter to the appeal within a period of seven days from the date of service of the notice referred to in sub rule (3) or within such further time as may be allowed by the Appellate Tribunal for sufficient cause

(7) On the date fixed for the hearing of the appeal under sub rule (1) or on such further date or dates to which the hearing may be adjourned, the Appellate Tribunal shall give a reasonable opportunity to the parties to state their case and adduce such evidence both oral and documentary as may be necessary in support of their claim and also to advance their arguments and shall there upon pass such orders as it deems fit

(8) If, on hearing the appeal, the Appellate Tribunal con rs that any further inquiry is necessary, it may itself make such inquiry or cause it to be made by any officer subordinate to it not lower in rank than a Deputy Tahsildar specifying the points on which such inquiry is necessary

(10) The notice referred to in sub rule (9) shall be in writing and shall be served in the same manner as the notice referred to in sub rule (7) of rule 4

(11) The appellate Tribunal may pending disposal of the appeal, stay the orders of the Tribunal, appealed against

SCHEDULE 1 SCHEDULE

SCHEDULE[See rule 5(2)] SCHEDULE

[See rule 5(2)]

Rates of process fee

Name of process

Fee amount payable

Rs. P

1. Summons of each defendant respondent or witness

served by an Officer of the Court

150

2. On every additional defendant, respondent or

witness residing in the same village, if process

is applied for at the same time

75

Form 2 Notice Form 3 FORM Form 4 FORM Form 5 FORM Form 6 NOTICE