Section 3: Inapplicability of the Act to certain debts and liabilities.

The provisions of this act shall not affect the following debts and liabilities of a scheduled debtor:- (a) any rent due in respect of any property let out to a scheduled debtor; (b) any liability arising out of breach of trust or any tortious liability; (c) any liability in respect of wages or remuneration due as salary or otherwise for services rendered to a scheduled debtor; (d) any liability in respect of maintenance whether under a decree of a court or otherwise; (e) any debt which represents the price of the goods purchased by a scheduled debtor; (f) any debt due to— (i) the Central Government or the State Government: (ii) any local authority; (iii) a banking company as defined in Section 5 of the Banking Regulation Act, 1949 (Central Act 10 of 1949), including 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) and a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970); (iv) any banking institution notified by the Central Government under Section 51 of the Banking Regulation Act, 1949; (v) a co-operative society; (vi) a Government company as defined in Section 617 of the Companies Act. 1956 (Central Act 1 of 1956); (vii) the Agricultural Finance Corporation Limited, a company incorporated under the Companies Act, 1956 (Central Act 1 of 1956): (viii) the Rajasthan State Agro-Industries Corporation; (ix) a corporation or any other body corporate by whatever name called and established or constituted by any law for the time being in force; and (x) any other financial institution that may be notified by the State Government in the Official Gazette; (g) any sum recoverable as a public demand or arrears of land revenue under any law for the time being in force.