An Act to provide for relief from indebtedness to certain farmers, rural artisans, rural labourers and workers
WHEREAS; both Houses of the State Legislature were not in session
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to provide for relief from indebtedness to certain farmers, rural artisans, rural labourers and workers in the State of Maharashtra and for that purpose promulgated the Maharashtra Debt Relief Ordinance, 1975, on 22nd day of August 1975.
AND WHEREAS it is now considered that relief from indebtedness should be restricted to liabilities arising out of loans only and debts of workers who hold immovable property the market value of which does not exceed twenty thousand rupees should stand liquidated, and the debts of workers who hold such property the market value of which exceeds twenty thousand rupees but does not exceed forty thousand rupees should receive moratorium for a temporary period
AND WHEREAS it is expedient to rep the said Ordinance by an Act of the State Legislature after carrying out therein the amendments as hereinafter pro vided for securing the above purposes and other purposes hereinafter appearing It is hereby enacted in the Twenty-sixth Year of the Republic of India as follows
CHAPTER I PRELIMINARY
SECTION 01: SHORT TITLE, EXTENT, COMMENCEMENT AND DURATION
(1) This Act may be called the Maharashtra Debt Relief Act, 1975.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 22nd day of August 19
(4) It shall remain in force for a period of one year commencing on the 22nd day of August 1975, but the Slate Government may, by a notification in the Official Gazette, extend the said period for a further period not exceeding in the aggregate two years, and shall then expire. Section 7 of the Bombay General Clauses Act, 1904, shall apply upon the expiry of this Act, as if it had then been repealed by a Maharashtra Act.
SECTION 02: DEFINITIONS
In this Act, unless the context requires otherwise,—
(a) “agriculturist means a person who cultivates land personally
(b) “ appointed day” means the 22nd day of August 1975
(c) “civil court” includes a Court of Small Causes
(d) “corporation area” means an area within the jurisdiction of any municipal corporation constituted or established under any law for the time being in force;
(e) “debt” means any liability, in cash or kind, outstanding on the appointed day, being a liability arising out of a loan (with interest if the loan is taken by a worker, and with or without interest, in any other case) whether secured or unsecured, due from a debtor whether payable under a decree or order or any court or otherwise;
(f) “debtor” means a marginal farmer, rural aritisan, or rural labourer whose total income from all sources did not exceed to thousand and four hundred rupees during the year immediately before the 1st day of August 1975 and a worker whose total income from all sources did not exceed, if living in an urban area six thousand rupees during the year immediately before the said date, and if living elsewhere four thousand and eight hundred rupees during that year;
(g) “to hold land” with its grammatical variations and cognate expressions, means to be lawfully in actual possession of land owner or as tenant (including a Government lessee), and the expression holding” shall he construed accordingly;
(h) “ marginal farmer” means an agriculturist who holds land measuring not more than one hectare of unirrigated land and includes an agriculturist who cultivates as a tenant or share cropper land measuring not more than one hectare of unirrigated land;
(i) “member of a family” means a father, mother, spouse, brother in-married dependent sister, divorced and dependent sister, son, son’s wife, or unmarried daughter, divorced and dependent daughter, son’s son, son’s un married daughter, sons divorced and dependent daughter, and includes any relation residing with and actually dependent for his maintenance on the debtor;
(j) “rural area” means an area for the time being within the jurisdiction of a Zilla Parishad established under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961, and includes any ‘B Class, or C’ Class municipal area as classified under the Maharashtra Municipalities Act, 1965 but does not include the area within the limits of the cantonments of Poona, Kirkee and Kamptee as defined under the Cantonments Act. 1924;
(k) “rural artisan” means a person who principally earns his livelihood in a rural area by practicing any craft either by his own labour or with the help of labour of the members of his family but does not include an artisan who resides in an urban area
(l) “rural labourer” means a person who-
(i) does not hold any land in a rural area,
(ii) may or may not have any homestead therein, and
(iii) earn his livelihood principally by manual labour but does not include any such labourer residing in an urban area and a rural artisan;
(m) “small farmer” means an agriculturist who holds land measuring more than one hectare of unirrigated hind but less than two hectares of such land and who cultivates personally such land and includes an agriculturist who cultivates as a tenant or a share cropper land measuring more than one hectare of unirrigated land but not more than two hectares of such land:
Explanation 1: A person belonging to a Scheduled Caste, Scheduled Tribe, Nomadic Tribe or Vimukta Jatis shall be deemed to be small farmer irrespective five of the extent of unirrigated land held and cultivated by him as aforesaid;
Explanation II.—” Nomadic Tribes “and “Vimukta jatis” means Nomadic Tribes and Vimukta Jatis determined as such by the State Government from time to time;
(n) “urban are “ means a corporation area or an area within the limits of any municipal council constituted under any law for the time being in force in the State, and includes the area within the limits of the cantonments of Poona, Kirkee and Kamptee as defined under the Cantonments Act. 1924, but does not include any “B” Class, or “C” Cass municipal area as classified under the Maharashtra Municipalities Act, 1965
(o) “worker” means a person who earns his livelihood through any profession, calling or trade and also a person who is working in any factory (including a badli worker therein)
Explanation.—in this clause-—
(1) the expression “factory” has the meaning assigned to it in the Factories Act, l948, with this modification that the limitation on the number of workers working there shall be dispensed with;
(2) the expression “badli worker” means a worker who is provided with a bad card and who is employed in a factory in place of another worker who is temporarily absent and whose name is borne on the muster-roll of the factory
(3) for the avoidance of doubt, it is hereby declared that the expression ‘profession: calling or trade’ shall include and shall be deemed always to have included ‘employment’, and that expression shall he construed accordingly.
(p) words and expressions used in this Act but not defined therein shall have the meanings, respectively assigned to them in the Maharashtra Agricultural Lands (Ceiling on Holdings Act, 1961.
CHAPTER II REVIVAL OF DEBTS
SECTION 03: REVIVAL OF ALL DISCHARGED DEBTS UNDER ORDINANCE VII OF 1975
Notwithstanding anything contained in the Maharashtra Debt Relief Ordinance, 1975, all debts of a debtor which stood discharged on the appointed day under the provisions of that Ordinance shall, on the commencement of this Act, stand revived; and accordingly, the provisions of the said Ordinance as amended by this Act as herein provided shall operate in relation to all such received debts as if those provisions wore always amended and in operation on the appointed day.
CHAFFER III LIQUIDATION OF CERTAIN DEBTS
SECTION 04: DISCHARGE OF CERTAIN DEBTS AND CONSEQUENCES THEREOF
Notwithstanding anything contained in any other law for the time being in force or in any contract or other instrument having force by virtue of any such law, and save as otherwise expressly provided in this Act, every debt of a worker whose immoveable property if any. does not exceed twenty thousand rupees in market value and every debt of any other debtor, outstanding on the appointed day, including the amount of interest, if any, payable by a debtor shall be deemed to be wholly discharged and the consequences as hereinafter set forth shall with effect from the appointed day, ensue namely:-
no such debt due from a debtor on the appointed day shall be recoverable from him or from or against any moveable or immovable property belonging to him, nor shall any such properly be liable to be attached and sold or proceeded against in any manner in the execution of any decree or order relating to such debt against him:
(b) no civil court shall entertain any suit a, proceeding against such debtor for the recovery of any amount of such dell', including interest, if any:
Provided that, where a suit or proceeding Is instituted jointly against such debtor or any other person, nothing in this clause shall apply to the maintainability of a suit or proceeding in so far as it relates to such other person;
(c) all suits and proceedings (including appeals, revisions, attachment or execution proceedings) pending on the appointed day for the recovery of any such debt against such debtor shall abate :
Provided that nothing in this clause shall apply to the sale of
(i) any movable property, held and concluded before tile appointed day ;
(ii) any immovable property, confirmed before such day
(d) every debtor undergoing detention in a civil prison in execution of any decree for money passed against Min by a civil court in respect of any such debt shall be released;
(e) every property pledged or mortgaged by a debtor shall stand released in favour of such debtor and the creditor shall be bound to return the same to the debtor forthwith or the, debtor making an application in writing in that behalfand the creditor shall pass a receipt to the debtor of having received the application. If the creditor refuses to pass a receipt, then the debtor may get the application endorsed to that effect under the signature and date of any of the officers referred to in section 6 or by any person authorized by them in this behalf
Explanation 1.-Nothing in this section shall be construed to entitle any such debtor to the refund of any part of a debt already repaid by him or recovery from him before the appointed day.
Explanation 2.- For the purposes of this section, the expressiondebt of a worker includes a debt arising out of loans taken from more than one creditor.
SECTION 05: PROHIBITION AGAINST DISPOSAL OF PLEDGED PROPERTY ETC AND PENALTY
(1) No creditor shall after the appointed day, damage, destroy or tamper with any property pledged or mortgaged with him or fly document connected therewith or part with or otherwise deal with the same except as provided in this Act.
(2) Any person who contravenes the provisions of sub (1) shall, on conviction, be punished with imprisonment for a term which may extend to three years and with fine which may extend to one thousand rupees:
Provided that, in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, such imprisonment shall not be less than six months, and fine shall not be less than two hundred rupees.
SECTION 06: POWER OF CERTAIN OFFICERS TO ENFORCE DELIVERY OF POSSESSION OF PROPERTY TO DEBTOR
Where a creditor fails to return the property to the debtor forthwith as required by clause(e) of section 4 and the debtor is opposed or impeded in taking possession of the property, then the debtor may, subject to the provisions of section 7. request the Commissioner of Police, where there is one, and else where the District Magistrate, or the Superintendent of Police, to enforce deliver, of possession of such property. The Commissioner of Police, the District Magistrate or, as the case may be the Superintendent of Police shall take or cause to be taken such steps or use or cause to be used such force as may be reasonably necessary for securing the delivery of possession of the property to the debtor.
Explanation—For the purposes of this section -
(a) the Commissioner of Police includes an officer not below the rank of an Inspector duly authorised by him;
(b) the District Magistrate includes an officer not below the rank of a Tahsildar duly authorised by him; and
(c) the Superintendent of Police includes an officer not below the rank of a Sub-Inspector duly authorised by him.
SECTION 07: CREDITOR MAY DISPUTE DEBTOR’S CLAIM
(1) If, in the course of implementing the provisions of section 4, a creditor raises a question that the person who claims to be his debtor is not a marginal farmer, a rural artisan, a rural labourer or as the case may be, a worker or disputes the eligibility of the debtor or relief under this Act on any other ground including the valuation of the immovable property, If any, of a worker, then the creditor shall make an application in writing to an officer not below the rank of an Additional Tahsildar (or any officer in any department who in the opinion of the District Magistrate is of equivalent duly appointed by an order in writing by the District Magistrate in this behalf thereinafter referred to as “the Authorised Officer ).
(2) The application shall state the facts of the case in brief, and the point raised for the decision of the Authorised Officer and shall be made within seven days from the date of receipt of the application by the creditor under clause (e) of section 4, or from the date of endorsement made on the application under that clause.
(3) No application under this section shall be entertained by the Authorised Officer unless the creditor either deposited the pledged property or any document evidencing such pledge or both the value of such property, if the property for any reason is not available with the creditor, in which case he shall make an affidavit stating the reasons for which the property is not available.
(4) In all proceedings under this section, the Authorised Officer shall follow the procedure provided for summary inquiries under the Maharashtra Land Revenue Code, 1966.
(5) For the purposes of this section, a person claiming to be a debtor shall unless the contrary is proved, be presumed by the Aulhorised Officer to be a debtor if he produces a certificate from any Special Executive Magistrate, talathi police patil, sarpanch of a village panchayat, or any person specified by the State Government in an order from time to time made in this behalf that he is a debtor as described in such certificate. The certificate shall be issued in such form as the State Government may from time to time determine. The authority issuing the certificate may not hear the creditor before issuing such certificate.
(6) The Authorised Officer shall have power to determine all questions in relation to, or connected with, the question or dispute raised by the creditor in his application, and accordingly, he may determine the extent, or as the case may be the value of the property, give directions for the safe custody of the pledged property and may pass such orders as may be necessary in the circumstances of each case for enforcing and implementing the provisions of this Act. It shall be lawful for the Authorised Officer to take the assistance of the services of an expert for determining the value of any immovable property; and the provisions of sub-section (3) of section 9 for payment of honorarium shall apply to such payment.
(7) Except as otherwise provided in this section no question shall be decided by the Authorised Officer under this section unless an opportunity has been given to the creditor and the debtor to be heard.
(8) The Authorised Officer shall decide the question s provided in this section and his decision shall be final and conclusive and shall not be called in question in any civil court. If the property or its value is in the possession of the Authorised Officer and the decision is in favour of the debtor, it shall be delivered to the debtor forthwith and he shall make an endorsement on the order that the properly or value has been delivered to the debtor.
SECTION 08: POWER OF ENTRY AND SEARCH
(1) For enforcing the provisions of this Chapter, an officer referred to in section 6 may enter and search any place without any warrant where such officer has reason to believe that the property of any debtor or any document evidencing transactions relating to a loan given to any debtor is kept or concealed; and may seize such property or documents and detain the same in his custody for such period as he may think fit. If the property is not delivered to the debtor it shall be returned to the creditor from whose custody it was seized.
(2) Except as provided in sub-section (1) the other provisions of the Code of Criminal Procedure, 1973, shall, so far may be applicable, apply to such search or seizure as they apply to any search or seizure made under the provisions of the said Code.
SECTION 09: CREDITOR REQUIRED TO PAY VALUE OF PLEDGED PROPERTY IN CERTAIN CASES
(1) If the possession of the property pledged by a debtor cannot for any reason (including lack of identity thereof) be delivered to him, then the creditor shall pay to the debtor the value of such property. The value of the property shall be the market value thereof, and identity of the property shall be determined after due inquiry made in that behalf. If the creditor fails to pay the value it may be recoverable from him as an arrear of land revenue; and on recovery of the value, it shall be delivered to the debtor by whom such property was pledged.
(2) If there is difference of opinion between the creditor and the debtor on the question of value of the property or its identity, the question shall be referred to the Authorised Officer for decision, and hi decision on the question shall be final.
(3) the value of the property may be determined with the assistance of the services of an expert appointed in that behalf. The expert may be paid such honorarium as the State Government or any officer not below the rank of a Tahsildar appointed by it may by an order in writing from time to time in relation to any area or areas determine.
SECTION 10: POWER AUTHORIZED OFFICES TO IMPOSE FINE FOR FRIVOLOUS OR VEXATIOUS APPLICATIONS
Where an application presented to an Authorised Officer under section 7 is dismissed, and the Authorised Officer is satisfied that the application is frivolous or vexatious, the Authorised Officer may by an order in writing impose on the creditor a fine of an amount which may extend to one hundred rupees. If the creditor fails to pay the fine within thirty days from the date of receipt of the order, it may be recovered from him as an arrear of land revenue.
SECTION 11: BAR OF JURISDICTION
(1) No civil court shall have jurisdiction to settle, decide or deal with any question which is by or under this Chapter required to be settled, decided or dealt with by the Authorised Officer.
(2) No order of the State Government or of any officer or authority made under this Chapter shall be questioned in any court.
SECTION 12: SUITS INVOLVING ISSUES REQUIRED TO BE DECIDED UNDER THIS ACT
(1) If a suit instituted in any civil court involves any issues which are required to be settled, decided or dealt with, by the Authorised Officer under this Act, the civil Court shall stay the suit, and refer such issues to I he Authorised Officer for determination.
(2) On receipt of such reference from the civil court the Authorised Officer shall deal with and decide such issues in accordance with the provisions of this Chapter, and shall communicate his decision to the civil court; and such court shall thereupon dispose of the suit in accordance with the procedure applicable thereto
SECTION 13: AGREEMENT FOR LABOUR IN LIEU OF DEBT TO BECOME VOID
Any custom or tradition or any agreement (whether made before or after the appointed day), where under or by virtue of which a debtor or any member of his family is required to work as labourer or otherwise for the creditor shall be void and of no effect and shall never be enforceable in any civil court.
CHAPTER IV MORATORIUM ON DEBTS OF WORKERS
SECTION 14: MORATORIUM ON DEBTS OF WORKERS IN CERTAIN CASES
(1) Notwithstanding anything contained in any other law for the time being in force or in any contract or other instrument having force by virtue of any such law, no debt of a worker who holds immovable property the market value of which exceeds twenty thousand rupees but does not exceed forty thousand rupees together with interest, if any, outstanding on the appointed day, shall stand discharged or shall be deemed ever to have stood discharged on the appointed day and except as hereinbefore provided, all such debts shall stand revived as provided by section 3 and shall continue to exist until they are wholly discharged but the payment or recovery of any such debts shall subject to the provisions of this section. nevertheless stand stayed during the period this Act remains in force; and it shall not be lawful for any creditor to recover any such debt or any part thereof or any interest remaining unpaid on the appointed day during such period, and the provisions of Chapter V shall apply to the execution of decrees in relation to such debt against any such workers as they apply to the execution of decrees against small farmers.
(2) The amount of debt of a worker to be recovered after the expiry of this Act shall not exceed the amount of the principal by more than one hundred and fifty per cent of such amount.
(3) No interest shall accrue on any amount of the debt of a worker during the period this Chapter is in operation.
Explanation—For the purposes of this section, the expression debt of a worker’ includes a debt arising out of Loans taken from more than one creditor
CHAPTER V MORATORIUM ON EXECUTION OF DECREES AGAINST SMALL FARMERS
SECTION 15: STAY OF PROCEEDINGS IN CASE OF CERTAIN DECREES
(1) All proceedings in execution of any decree for money, or proceedings for making final, any preliminary decree for foreclosure or sale, or proceedings in execution of any final decree for sate, passed by a civil Court on the basis of a liability in relation to a debt incurred before the appointed day, in which the judgment-debtor or defendant, as the case may be is on the appointed day, a small farmer, shall be stayed against such judgment-debtor or defendant, on an application made by him in this behalf during the period this Act remains in force.
(2) Alt attachments of growing crops agricultural produce, livestock and other movable property of a perishable nature made in execution of decrees or money the execution of which has been stayed under sub-sec (1) and existing on the date on which the day order is passed shall be withdrawn.
(3) Any judgment debtor or defendant who is a small farmer may, notwithstanding that no proceedings of the nature referred to in sub-section (1) are pending against him, make an application for stay under that sub-section.
(4) Every stay order passed by a court under this section shall relate back to the date of the application for stay filed by the judgment-debtor or defendant, as the case may be, and the proceedings shall for all purposes of this Act be deemed to have been stayed with effect from such date.
SECTION 16: RELEASE OF PERSONS IN DETENTION IN CIVIL PRISON
(1) On the appointed day, every small farmer undergoing detention in a civil prison in execution of any decree for money passed by a civil court in respect of his debt shall be released.
(2) No small farmer shall in any case be liable to arrest or detention in a civil prison in execution any such decree as is referred to in sub-section (1) during the period this Act remains in force.
SECTION 17: RELIEF AGAINST DEFAULT IN PAYMENT OF INSTALMENT
(1) Where a decree for payment of a decretal amount by instalments contains a provision that in default of one or more instalments, the whole amount shall become due at once, then, notwithstanding anything in such provision, non-payment of any instalment falling due during the period in which the proceedings in execution remained stayed under this Act, shall not be deemed to be a default for the purposes of such provision.
(2) If the judgment-debtor pays the installments so falling due within a period of twelve months after the expiry of this Act then such instalment shall be deemed to have been paid on the due data.
SECTION 18: COMPUTATION OF TIME FOR EXECUTION
In computing the period of twelve years prescribed by the Limitation Act 1963, the period during which proceedings are stayed under this Act shall be excluded.
SECTION 19: PAYMENT OF CERTAIN DEGREES
Nothing contained in this Chapter shall—
(a) apply to a decree for money arising out of claims relating to trusts or for maintenance or for profits in favour of a co-tenant, or co-owner, or for mesne profits or for damages for tort, or for contribution between co-tenants of agricultural lands; or
(b) apply to a mortgage decree against property in the hands of a subsequent transferee who has taken the transfer in order to satisfy the mortgage subject to the mortgage on the basis of which such decree has been obtained;
(c) apply to the decisions or orders or awards given or made by the Registrar, persons appointed to assist the Registrar, nominees or boards of nominees appointed by the Registrar, Liquidators, Maharashtra State Co operative Tribunal, Co-operative Courts, Co-operative Appellate Court or other authorities under the Maharashtra Co-operative Societies Act, 1960 or the rules made thereunder.
SECTION 20: TRANSFER BY SMALL FARMER TO BE VOIDABLE
Every transfer of property made by a small farmer against whom proceedings in execution have been stayed under this Act shall be voidable at the option of the creditor whose claim against such small farmer is defeated or delayed.
SECTION 21: RESTRICTION ON AMOUNT OF CLAIM AND INTEREST IN CERTAIN CASES
(1) On the expiry of this Chapter, no claim arising out of any proceedings which are stayed under sub-section (1) of section 15 or out of an decree described in sub-section (1) of that section in respect of which no execution proceedings have been taken shall exceed the amount of the principal by more than one hundred fifty per cent of such amount.
(2) No interest shall accrue on any amount included in any claim referred to in sub-section (1) during the period this Chapter is in operation.
CHAPTER V EXEMPTIONS AND REPEALS
SECTION 22: EXEMPTIONS
Without prejudice to the provisions of section 19 nothing in this Act shall affect the debts and other liabilities of any debtor or small farmer fatling under any of the following matters, namely
(a) debts due to any Government
(b) debts due to any local authority including a due by way of tax, cess or fee
(c) debts due to
(i) (a) a banking company as defined in the Banking Regulation Act.
1949;
(b) the State Bank of India constituted under the State Bank of India Act. 1955
(c) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959;
(d) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act. 1970;
(e) the Agricultural Refinance Corporation constituted under the Agricultural Refinance Corporation Act. 1963; and
(ii) any other banking, financial or any institution which the State Government may, by notification in the Official Gazette, specify in this behalf;
(d) any sum recoverable by way of arrear of land revenue;
(e) any advance of loan given to a debtor by his employer for any specific purpose, such as, for festival, medical treatment, meeting any educational marriage or funeral expenses and the like
(f) any sum due in favour of public trusts registered under the Bombay Public Trusts Act, 1950;
(g) any claim arising out of contract or transaction not connected with money-lending.
SECTION 23: REPEAL OF MAHARASHTRA ORD VII OF 1975 AND SAVINGS
(1) The Maharashtra Debt Relief Ordinance. 1975, is hereby repealed.
(2) Norwith5tanding such repeal. anything done or any action taken (including any appointment made or any order or notification issued) under the Ordinance so repealed shall, unless inconsistent with the provisions of this Act be deemed to have been done, taken made or issued, as the case may be under the corresponding provisions of this Act.
