(1) Where any person is party,- (A) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire-purchase of goods sold to him by the State Government or the Corporation, by way of financial assistance; or (B) to any agreement relating to a loan, advance or grant to him or relating to credit in respect of or relating to hire-purchase of, goods sold to him by a banking company or a Government company, as the case may be, under a State sponsored scheme; or (C) to any agreement relating to a guarantee given by the State Government or the Corporation in respect of a loan raised by an industrial concern; or (D) to any agreement providing that any money payable thereunder to the State Government shall be recoverable as arrears of land revenue;
and such person,-
(a) makes any default in payment of the loan or advance or any instalment thereof; or 5
(b) having become liable under the conditions of the grant to refund the grant or any portion thereof, makes any default in the refund of such grant or portion or any instalment thereof; or
(c) otherwise fails to comply with the terms of the agreement, then,-
(i) in the case of the State Government, such officer as the State Government may by notification authorise in this behalf;
(ii) in the case of a Corporation or a Government Company, the Managing Director thereof; and
(iii) in the case of banking company, the local agent thereof by whatever name called, may, send a certificate to the Deputy Commissioner, mentioning the sum due from such persons and requesting that such sum together with the cost of the proceedings and future interest at the 1[agreed rate within the limits prescribed by the Reserve Bank of India and other Government Financing or Re-financing institutions from time to time]1 upto the date of recovery be recovered as if it were arrear of land revenue.
A certificate sent to the Deputy Commissioner may be withdrawn at any time.
1. Substituted by Act 37 of 1985 w.e.f. 21.10.1985
(2) The Deputy Commissioner on receiving the certificate shall proceed to recover the amount stated therein as an arrear of land revenue.
(3) On an application made by a banking company and on its furnishing a statement of accounts in respect of any sum due to it from any person in respect of a loan given to him under a socially desirable scheme the prescribed officer may, after making such enquiry as he deems fit, and after giving such person a reasonable opportunity of being heard, grant a certificate specifying the sum due.
(4) A certificate so granted by the prescribed officer shall be final and may be sent to the Deputy Commissioner by the banking company. The sum stated therein to be due and interest thereon at the 1[agreed rate within the limits prescribed by the Reserve Bank of India and other Government Financing or Re-financing institutions from time to time]1 upto the date of recovery together with the cost of the proceedings shall be recoverable as an arrear of land revenue. A certificate sent to the Deputy Commissioner may be withdrawn at any time .
1. Substituted by Act 37 of 1985 w.e.f. 21.10.1985
(5) No suit for the recovery of any sum due as aforesaid shall lie in a civil court against any person referred to therein if proceedings to recover the same are pending before the Deputy Commissioner:
Provided that in computing the period of limitation for the recovery of any such sum through court, the period during which the filing of a suit in a court is barred shall be excluded.