Discharge of debts incurred on or after 29th December, 1976

1. (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, 1349 F. (Act 5 of 1349 F), 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 law for the time being in force, or any contract or other instrument having the force of law with effect on and from the commencement of this Act, every debt borrowed or incurred during the period between the 29th December, 1976 and 1[the 31st May, 1989] 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. (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 proceeding 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 proceeding pending 2[as on the 31st May, 1989], 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 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. (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.

¹ Substituted by the Act No.2 of 1990, S.2. 2. Substituted by the Act No.2 of 1990, S.2.