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Section 26

The Gujarat Rural Debtors' Relief Act, 1976State Act of Gujarat · Act 35 of 1976

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (7), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means any body corporate and includes a firm or other association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

27. Nothing in this Act shall affect the debts and other liabilities of any debtor falling under any of the following matters, namely :—

(a) debts due to any Government, including amount due by way of tax, cess or fee;

(b) debts due to any local authority including amount due by way of tax, cess or fee ;

(c) debts due to any co-operative society registered or deemed to be registered under the Gujarat Co-operative Societies Act, 1961 ;

(d) debts due to the Life Insurance Corporation of India;

2 of 1974.

Pleaders, etc., excluded from appearance.

Act to override other laws.

Declaration that Act gives effect to certain directive principles.

Application of Act to debts in kind.

Offences by companies.

Exempted debts.

Guj. X of 1962.

The Gujarat Rural Debtors' Relief Act, 1976 14 of 45

(e) debts due to—

(i) a banking company as defined in the Banking Regulation Act, 1949;

(ii) the State Bank of India constituted under the State Bank of India Act, 1955;

(iii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959;

(iv) a corresponding new Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;

(v) the Agricultural Refinance and Development Corporation constituted under the Agricultural Refinance and Development Corporation Act, 1963; and

(vi) any other banking, financial or other institution which the State Government may, by notification in the Official Gazette, specify in this behalf;

(f) any sum recoverable by way of arrears of land revenue;

(g) any rent or compensation due from a debtor in respect of any property;

(h) any sum due from a debtor—

(i) by way of price for goods, essential for the maintenance of the debtor and his wife, children and any other dependent residing with him, and

(ii) by way of charges for supply of electricity, water or such other essential services;

(i) any liability in respect of wages or remuneration due as salary or otherwise for services rendered;

(j) any liability in respect of maintenance whether under a decree of a Court or otherwise;

(k) any amount due under a hire-purchase agreement.

Where this provision sits

ActThe Gujarat Rural Debtors' Relief Act, 1976
Section26
JurisdictionState of Gujarat
StatusIn force as published by the source

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