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The Tamil Nadu Indebted Agriculturists (Repayment of Debts) Act, 1955 Act 1 of 1955 Keyword(s):
Agriculturist, Debt
1ndL.btt.d Agriculturists [1955: T . N . Act I 346 (Rcpilymtnt of Debts) * , l[TAM L XADU] ACT No. 1 OF 19552.
(Receivedthe assent of the Presiderzt on the 27th February 1955; first pzrblished in the Forl St. George Gazette Extraorninary on the 1st March 1955.)
I An Act to give reiief to indebted agriculturists ia the 3[State of Tamil Nadu].
WHEREAS it is txpediont to enable the indebted agriculturists to repay their debts in easy instaimants ;
BE it enacted in the Sixth Year of the Republic of India as follows :- Shor. title, 1. (1) This Act may be ;a?!ed tlw l[Tamil Nadu], Indebted Agricu1t11risf.s (Repaymotit of '3chts) Act, 1955. commenccme:~i.
(2). It extend.; t ta+ the whola of the 3fState of Tami i Nadu].
4[(3) Tt shall come into force at (;nc:,] I Deflnii ;om. 2. In {his Act, unles,; the context otherwise ;.equi~es-
(a) ' ag-I icirltureist ' n ,,ersc\~i wlxo I an interest other than intetest as a simple mortgagee in any agricultural or 1~or:icultural land not being a land appurtenant to a resid2ntial building but shall not include.-
(i) any getson liable io pay land revenue (which shall be deemed to include peshkarh and quit-rent) excoeding one hundrec: and 5fty rupees pzr l.lmufn in any year after 1952 53 :
1 T l ~ e s z rx7zrils n c r c ~ t ~ l ? ~ t i t titeci for the wort1 ",LfadrasW by the Tamil N'idu Ad..txut~on ai Laws Order. 1969, as amendecf by the Tamil Nadu Ad;:Ptation of Laws (S;cr i d Amendment) Order, 1969.
2 For Stayernen7 of Objects m d R:~.dii~, see Ft?r# St . George Gazette Extraunlil a:y d i: cd the 9 ~ h February 1955, Parr ~V-A, pages 64-65.
3 This expressio 3 ~ 3 ~ ; s~sbs!iluted ror L11e expr2ssion "State of Madrasc6 by tho Tamil Nadu 4dapt::tioil of Laws Order, 1965, 2s amended by the '1 N;!du Ad'lpist ion of Laws (Secand Amendmsnt) Order, 19*&!).
4 This $lib-sect io~ i was substituted fall the origins sub- S C ~ . i0'1 (3) by ~ e c l ion 3 &, and the Second Schedltlp to, the Tz-mi] Nadu Repe:.line slid Amending Acf, 1955 (l'arni j Nndu ~ c t xyxv1 0: ' 0.) 5).
1955: T8N. Act I] Indebted Agn' cult mists 347 .
(Repayment of Debts)
(ii) any person assessed to profession tax on income derived from a profession other than agriculture under any law governing municipal or local bodies in India on a halfyearly income of more than nine hundred rupees in any half-year after. 1952-53. &,
(iii) my person assessed in any half-year after 1952- 53 to property or house tax on an. annual rental value of '[not less than] rupees six hundred in raspect of buildings (other than a building in which he lives) or lands other than agr(icultura1 lands under any law governing municipal or ' local bodies in India ;
(iv) auy persoh a o a ~ , ~ d to sales tax on a total turnover of .not less than twenty thousand rupees in any year aher 1952-53 under' the Maclras General Sales Tax Act, 1939 (Madrac; Act IX of 1939), or 2[under the law of any other part of India relating to sales tax ] ;
(v) any person assessed to income-tax uilder the' Indian Income-tax Act, 1922 (Central Act XI of 1922), in any year after 1950-51 ;
A. %
(vi) a firm registered under the Indian Partnership - Act, 1932 (Central Act IX of 1932), or a company as defined .in *the Indian Companies Act, 1913 (Central Act VII of 19 131, or a' corporation formed ili pursuance of an Act of Parliament: of the United Kingdom or of any special Indian" i law ;, 1 1 ':r :.
i , 2 % <::
i . ;
, 3 .
Explanation I.--Where a joint Hindu family or. tqwad, . . c , ,,+ a ../ favazhi, 'kutumba or kavaru,,is an agriculturist, every coi . .. + parcbn-er or member of the tarwad, tavazhi, kutumba or - * a , kavaru, as the case may be,'shall bt; deemed to be an a&- ,. .
culturist provided that he dces, not fall under any of the .
I .
categories specified in sub-clauses (i) to (v). , I , ..
. , + ' .
$ 2 ~ b l a n a t i o n IL-The provisions of this Act shall not , , .. . ,&G apply to any person who though an agrl~ultu~ist was not kn *a : - .I* - ~, %% agriculturist on the 1st October 1953 ; . .
. ,. 5 - h e s e wards were inserted byasec!ian 3 OF, and the second schedule to, the Tn.mil N ~ d u Repenlii~g and Amending Act, 1955 (Tannil Nadu Act X%:XVI af 1955).
These mrds were subslit uted for the wards "under the law of any other Statate relating to Sales 'Tax " by 5ection 4 of, and the Third Schedule to, the Tam'l Nadw Repealing and Amending'Act, $957 (Tamil Nadu Act $XV of 1957).
* See now the ~onipaniss A ~ t i 1956 (Central Act 1 of 1956).
I 348 I/tdebted Agn'dturis ts [135S: TON. Act I (Repqment of Debts)
(b) ' debt ' means .any liability in cash or kind.
whether secured or unsecured, due from an agriculturist on the 1 st October 1953 whether payable under a corktract or decree or ordor of a Court, civil or revenue, or otherwise, but shall not include- 9
(i) 'any sum paynble to the Stntc or the Centla!
Government or to any local autl-ro~ity ;
(ii) any sum p:?yable to any co-operative society including land. ~nortgngc bank, ~*egisfcrt=d 01- dcc~ncd to bc registo~od LI ndcr t hc ': Ma t l r-as C'o-opt l-ativ!: Socictics Act, 1932 (Madras Act VI of 1932) wovidecl that the right of the society to recover the s:lm did not R T ~ S ~ ~ J . reason of an assignment made subsequai~t tb ;a; 3ct?Let 1953 ;
(iji) any liability arising out of breach of trust ;
(iv) any li,$bility in respect of rfiailzte118nco ;
(v) any liability in iespect of wngts or rernunero - t i ~ n , due as salary or otherwise Ihr se~~viccs r~ildsred ; or
(vi) any liabij.icy incurred or arising under any Chit Fund Schen~c.
Exp~u~at ion 1.-Where a debt has been renewed or included in a fresh document executed after the 1 st October 1953 whether by the san~e debtor or by his heirs, legal representatives or axsiens or by any other person acting on his behalf or in h i 5 4:ltcrest or as cr result of :. partition, in favour of tho Sam6 creditor or l ~ i s heirs, kgal repmentatives or assigns or any other person acting on his behalf or in his interest or as a io~ul t of s partition, the amount outstanding on the 1.1 October 1953 anc! Included in the document executed actel the 1st Octnbc,r 1953 shall alone be treated as the debt f ~ r the purposes of this Act.
E:;-!anatiorr 11.--Wilere a debt has been split up aftel the 1st 0ctob:r 1953 anlong the hcirc, legal representatives or assigns of a debtor or a cleditor or as a result of a partition and fre.ih d~xumellts i m ~ e been exccuted i n respect of different p o ~ t : ( ) i ~ \ oTthe debt, cacli of ihc differenf portions shall he n {ie" ii;.,r tlie purposes of this Act.
-qee now the 'l'smil NL'do C',~-op~,r.~t i i c Sucic!ic.; t , l Oh 1 (Tam11 Nadu tic1 5.3 01 I xi: .)
I 1955: T.N. Act I ] ~ndeb t ed ~ ~ r i c u 2 turists - '(Repayment$ of Debts) .
, .. , I P . .
- 3. (1) NO suit for recovery of a debt shall be instituted, Bar pf suits ant' - . . and no .application for execution of a decree in respect of a a~pbation* debt shall be made, againsf any agriculturist in any civil or revenue Court before the expiry of four months from the .
.commencement of this Act.
Explanatio~z I.-Where a debt is payable by an agriculturist jointly or jointly'and severally with a iion-agriculturist, no suit or application of the nature mentidnrd in this sub-section shall be instituted or made either against the ~ non-agriculturist . or against the agriculturist before the expiry of the period mentioned in this sub-section.
Explanation 11.--For the purposes ol' this Act, a .suit in which a decree in respect of a debt is prayed for shall bk deemed to be a suit for the recoveEy of a debt notwithstanding that other ieliefs are prayed for in such suit and a decree, shal! be deemed to be a decree in respect of a debt notwithstanding that o ~ & r reliefs are granted in such decree :
Provided that a suit for possession of land shall not be .
deemed to be a suit for recovery of a debt by reason meiely of mesne profits being also prayed for in such suit :
Psovided further thai nothing contained in this s~ction shall apply to any portion of a decre. other than that I ( . relating to a debt.
(2) Where a cn ditoi files a suit for recovely of a debt during the period specified in sub-sectjon (1) or after ihc 2 a#jicultu~ist has paid or deposited into Co-~rt the sums and instalnients specified in sub-section (1) of seclion 4 and duling the p~liod when he is so entitled to pay, the Court \ shall in decreeing the suit direct the plantiff to bear his own costs and pay the costs of the defeA1dani who i s an agriculturist : '
Provided that nothing contained in this sub-section shall be a bar to the Court passing any order as to costs as 6 between the plalintiff and other defendants who are not agriculturist^.
, - 4. (1) Notwi hhstanding any jaw, custom, contract, ' or t Of debt.
decree of Court tq the contrary, an agticulturist shall be i n instalments. :
entitled to pay within four months of the commencement of i ' .\ this Act the interest due on any debt due by him up to the + *>, . - a .
commencement of this Act afid one-eighth of the principal " . " outstanding or one-fourth of the total amount outstanding, ,i I , , , 7 r' """' , . .':I , { ?> whichever is less, rind the balance of the debt in three equal annual instaln~en~s on or bef~re the 1st July of each of the succeeding three years wit' :l.; ;,t:~,~:e".?!:3 (in such instalment up to that date.
Exp2anatiori.-Ir the case of a decrec, iki: amouilt decreed shall be deemed to be the p~itlsipal.
(2) Whcsc, in respcct of a decree fbr debt passed - before the commenc;errienl. of this Act, a debtor fails to make any one of the gsyrueots spcciiied in sub-section (1) the decree holder shall be entitled to execute the decree in respect of the instaln~ent which is in defadt.
I (3) In ilily suit fried alter the colnrneizcei~lent of this Act, the Court in decreeing the suit shall provide for the immediate payment of such instalment or lnstallnents as would have become due '[under the provisions oQ subsection (1) and the balalce in further iretslments as specified therein.
(4) Where in any suit for the recovery of a debt pending at the colnmencement of this Act, the debtor claims to be an agriculturist, tlis Court shall, if the debtor is an agriculturist, pass a decrce for im~nediate payment of such instalment o. '7-ctallnents as would have become payable under t'.: provisions of sub-section (1) and the balance in further instalments as specified therein,
(5) Nothing contained in this Act shall bar the Court from passing a decree or making an ordcr in an application for execution of the deciec under such terms and conditions as may be inoR favourable to thb debtor than those provi- . ded for in this section either of its own motion upon a consideration of ail the circumstances C C L ~ G cosc or upon an agreement between ti12 parties.
(6) Where in any suit to recover a debt or in any application for the execution of a decrce therefor the debt is payable by an agricultorist jointly or jointly and severally with a non-agriculturist, the Court shall pass a decree or make an order for the paylnellt of the debt found due from -- 1 These words were subjtit uted foi the words "under provisions of" by section 3 of, and the Second Schedule to, the Tamil WaduRepealing and Amending Act, 1955 (Tamil Nadu ~ c t X X X V of 1955.)
- . -- - - - - - -- -' --- 1955:.TbN.ActI] IndebtedAgriculturists (Repayment of Debts) 1
(2) Where any such application is made, the Court.
I1 pa& an order recdiding part-satisfaction of the debt if .
amount deposited is the correct amount.
(3) The Court shall dis&ss the application-
(a) if the applicant is not an agriculturist, or ' d l t
(b) if the liability is not a debt, or
(c) if the amount deposited is insufficient and tbe applicant on being required by the Court to deposit tbe deficit amount within a time flxed by the Court, fails to Appeals. 6. An appeal shall lie From an order passed by a Court under section 5, as if such an order relates to the execution, I discharge or sarisfaction of a decree within the meaning of section 47 of the Code of Civil 13rocedare,. I908 (Central Act V of' 1908).
Presurn~tion 7. (1) Every transfer of imnlovabie property mado by as to transfer of a debtor entitled to the benefits of this Act after the 1st ilnnlovabl: October 1953 and before the colnplete discharge of his debt, prop*rty of shall, in any suit or other proceeding with I-cspect ?o such thc debtor. transfer, be presumed, until the contrary is proved to have been made with iilte~lt to def~at or delqy the creditors of the tr:! nsferor.
(2) Where s debtor entitled to the benefits of this Act has allowed, ill collusion with another: his immovable property ;o be sold 4 ~ f i o ~ . the 1st October 19.53 throrlgh Court with rr view tto defeitc or delay his creditors, the sale shall be voidable at the op!idn oi any crcdiini. .;a d~!i.ntec; or delayed, Exclusion of 8. In computhg the period of limitation for a suit for time for recovery of a debt or an application for the execution of a limitation* decree in respec! of 3 debt, thp t i xe during which the institution of the suit or the nlnkine of rhe application was barred under section 3 shall be Sucluded.
Effect of 9. Where a debt is payable by an agriculturist either by payment or himself or jointly or jointly and s-verally with a non-;grideposit mder culturist and where the agriculturist makes paynlent or section 4 or section 5 , deposits amount tonrnrds that debt ns provided for in seaion 1 or s e c t k i ~ 5. n frrsh period ~ 7 f lin:itarion shall computed fro111 rhc rime \\-hen the payg-iiienr or deposit was made both aga..nst the dgric~llturi~f arld non-agriculturist, Power to 10. (1) The State Governmciii may make rules for make rules. carrying out the purposes of this Act.
# (2) The rules so made shall-be placed on the fable of each House of the Legislature as soon as they are published and shall be subject to such modification whether by way of repeal or amendment as tlla Legislature may make during the session in which t h r j are so laid.