Chapter II RELIEF FROM INDEBTEDNESS

(1) Notwithstanding anything in the Andhra Pradesh (Andhra Area) Agriculturists Relief Act, 1938 (Act 4 of 1938), the Andhra Pradesh (Telangana Area) Money Lenders Act, 1349F (Act 5 of 1349F), the Andhra Pradesh (Andhra Area) Pawn-brokers Act, 1943 (Act 23 of 1943), the Andhra Pradesh (Telangana Area) Agricultural Debtors’ Relief Act, 1956 (Act 16 of 1956), the Andhra Pradesh (Scheduled Area) Money Lenders Regulation, 1960 (Regulation 1 of 1960), the Andhra Pradesh Indebted Agriculturists, Landless Labourers and Artisans (Temporary Relief) Act, 1976 (Act 24 of 1976) or any other law for the time being in force or any contract or other instrument having the force of law and save as otherwise provided in this Act with effect on and from the commencement of this Act, every debt, including interest, if any, owing to any creditor by an agricultural labourer, a rural artisan or a small farmer shall be deemed to be wholly discharged. (2) (a) No Civil Court shall entertain any suit or other proceeding against the debtor for the recovery of any amount of the debt, including interest, if any, which is deemed to be discharged under sub-section (1): Provided that where any suit or other proceedings is instituted jointly against the debtor and any other person, nothing in this sub-section shall apply to the maintainability of such suit or proceeding in so far as it relates to such other person. (b) All suits and other proceedings including appeals, revisions, attachments or execution proceedings pending at the commencement of this Act against any debtor for the recovery of any such debt, including interest, if any, shall abate: Provided that nothing in this clause shall apply to the sale, in respect of any such debt, of- (i) any movable property held and concluded before the commencement of this Act; (ii) any immovable property, confirmed before such commencement. (c) Every debtor undergoing detention in a civil prison in execution of any decree for money passed against him by a Civil Court in respect of any such debt, including interest, if any, shall be released. (3) (a) Every movable property pledged by a debtor whose debt is deemed to be discharged under sub-section (1), shall stand released in favour of such debtor and the creditor shall be bound to deliver the same to the debtor forthwith. (b) Every mortgage executed by such debtor in favour of the creditor shall stand redeemed and the mortgaged property shall be released in favour of such debtor. Explanation:- Nothing in this section shall be construed as entitling any debtor for refund of any part of any debt repaid or interest paid already by him or recovered from him before the commencement of this Act.

(1) Every creditor referred to in clause (a) of sub section (3) of section 4 shall, within such period as may be prescribed, furnish to the Tribunal having jurisdiction over the area where such creditor has his ordinary place of business, a statement in such form as may be prescribed containing the names of all persons who have pledged movable property with him, the nature and description of such property, the amount advanced and due as on the commencement of this Act, the rate of interest and such other particulars as may be prescribed. (2) A debtor referred to in clause (a) of sub section (3) of section 4 may also make an application to the Tribunal having jurisdiction over the area where his creditor has his ordinary place of business for an order for the delivery of the movable property pledged by the debtor. (3) On receipt of a statement under sub-section (1) or an application under sub-section (2), and after such enquiry conducted in the manner prescribed, the Tribunal shall, by order, determine:- (i) where a statement has been furnished by the creditor under sub-section (1), which of the persons who have pledged movable property with him are entitled to relief under section 4, and (ii) where an application has been made by the debtor under sub-section (2), whether the debtor is entitled to relief under section 4, And direct the creditor to produce on or before the date specified in the order the movable property pledged by such person or debtor. (4) Where the movable property pledged by the debtor is in the possession of any transferee of the creditor, the creditor shall redeem the said property from such transferee and produce it on or before the date specified in the order referred to in sub-section (3). (5) If the creditor fails to produce the movable property as directed in the order under sub-section (3),- (a) the Tribunal may enter any premises of the creditor or of the transferee of the creditor and search and seize the said property; and (b) where the movable property is in the possession of any bank, the Tribunal shall- (i) by an order, direct the bank to deposit on or before the date specified in the order, the movable property with the Tribunal together with a statement specifying the amount due to the bank in respect of the said property and simultaneously issue a certificate to the bank to the effect that the amount due to the bank in respect of the said property shall be recovered from the creditor as if it were an arrear of land revenue and paid to the bank, and (ii) on the bank depositing the said property with the Tribunal acknowledge in writing the receipt of the movable property and proceed to recover from the creditor such amount as is due to the bank in respect of the said property as if it were an arrear of land revenue and on such recovery pay the same to the bank. (6) After such production or recovery or deposit of the movable property pledged the Tribunal shall deliver the said property to the debtor. (7) Pending determination of the question under sub section (3) no creditor or the transferee of the creditor shall sell or pledge or otherwise dispose of any movable property pledged by the debtor. (8) Notwithstanding anything in the Andhra Pradesh (Telangana Area) Money Lenders Act, 1349F. (Act 5 of 1349F.), the Andhra Pradesh (Andhra Area) Pawn-brokers Act, 1943 (Act 23 of 1943) or the Andhra Pradesh (Scheduled Areas) Money lenders Regulation, 1960 (Regulation 1 of 1960) or any other corresponding law for the time being in force, the Tribunal,- (a) may enter any premises of the creditor or of the transferee of the creditor and search and seize the movable properties pledge by debtors and arrange for their safe custody; (b) shall proceed to determine which of the movable properties so seized are to be released to the debtor and pass orders accordingly. (9) The provisions of sections 100 and 165 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) relating to search and seizure shall so far as may be, apply to searches and seizures under sub sections (5) and (8).

(1) A debtor referred to in clause (b) of sub section (3) of section 4 may make an application to the Tribunal having jurisdiction over the area within which such debtor ordinarily resides, for an order releasing the mortgaged property and for the grant of a certificate of redemption. (2) (a) On receipt of such application and after such enquiry conducted in the manner prescribed, the Tribunal shall pass an order releasing the mortgaged property and grant a certificate of redemption in the prescribed from which shall be admissible as evidence of such redemption in any proceeding before any court or other authority. (b) The Tribunal shall also direct the creditor or the transferee of the creditor- (i) to deliver possession of the mortgaged property to the debtor on or before the date specified in the order, if the debtor is not already in possession of the mortgaged property; and (ii) to produce on or before the date specified in the order, the mortgage deed or other document and the Tribunal shall make an endorsement of redemption on the mortgage deed or other document. (3) Pending orders under sub-section (2), no creditor or the transferee of the creditor shall transfer or otherwise assign his interest in, or exercise his right of foreclosure in respect of the property mortgaged by the debtor. (4) Where the mortgaged property has been transferred or any right therein has been assigned to any bank by the creditor, the Tribunal shall recover from the creditor such amount as is due to such bank in respect of the said mortgaged property, as if it were an arrear of land revenue, and shall pay the same to the bank.

Any person aggrieved by any order or decision made by the Tribunal under section 5 or section 6 may within sixty days from the date of communication of the order or decision to him appeal to the Appellate Tribunal subject to payment of such fees as may be prescribed.