Chapter VI MANAGEMENT OF ESTATES HELD BY LAND HOLDERS

Notwithstading any law for the time being in force, usage or custom or the terms of contract or grant, when the Government is satisfied that on account of the neglect of a landholder or disputes between him or his tenants the cultivation of his estate has seriously suffered, or when it appers to the Government that it is necessary for ensuring the full and efficient use of the land for agriculture to assume management of any landholder’s estate, a notification announcing such intention shall be published in the Official Gazette and the Collector shall cause notice of the substance of such notification to be given at convenient place in the locality where the estate is situated. Such notification shall be conclusive.

On the publication of the notification under section 35, the estate in respect of which the notification has been published shall, so long as the management continues, vest in the Government. Such management shall be deemed to commence from the date on which notification is published and the Government shall appoint a manager to be in charge of such estates.

On the publication of the notification under section 35, the following consequences shall ensue :- (1) All proceeding then pending in any civil court in respect of the debts and liabilities enforceable against the estate shall be stayed and the operation of all processes, executions and attachments then in force for or in respect of such debts and liabilities shall be suspended. (2) So long as the management continues no fresh proceedings, processes, executions or attachments shall be instituted in or issued, enforced or executed by any civil court in respect of such debts and liblilities. (3) So long as the managment continues the holder of the estate shall be incompetent:- (a) to enter any contract involving the estate in pecuniary libaility; (b) to mortage, charge, lease, or alienate the property under management or any part thereof; or (c) to grant valid receipts for the rents and profits arising or accruing thereform: Provided that nothing contained in this section shall be deemed to preclude the manager from letting and the holder from taking the whole or any part of such estate on such terms consistent with this Ordinance as may be agreed upon between the parties. (4) So long as the management continues, no person other than the manager shall be competent to mortage, charge, lease of alienate such estate or any part thereof.

(1) The manager shall, during the management of the estate, have all the powers which the holder thereof might as such have exercised and shall receive and recover all rents and profits due in respect of the property under management. (2) For the purpose of recovering such rents and profits the manager shall have, in addition to any powers possessed by the Collector under the law for the time being in force for securing and recovering land revenue due to Government.

(1) From the sums received or recovered under section 38, the manager shall pay: (i) the costs of management including the costs of necessary repairs; (ii) the Government revenue and all debts and liabilities for the time being due or incurred to the Government in respect of the property under management; (iii) the rent, if any, due to any superior holder in respect of the said estate; (iv) such periodical allowances as the Collector may from time to time fix for the maintenance and other expenses of the holder and of such members of his family as the Collector directs; (v) the cost of such improvements of the said estate as he thinks necessary and as approved by the Collector. (2) The residue shall be retained by the manager for the liquidation, in the manner hereinafter provided, of the debts and liabilities other than those mentioned in sub-section (1) and also for the repayment either before or after the liquidation of such debts and liabilities, of any loan received from Government by the manager under this Ordinance. The balance, if any, shall be paid to the holder.

On the publication of the order of management, the manager shall publish in the Official Gazette a notice calliing upon all persons having claims against the estate under management to notify the same writing to such manager within two months from the date of the publication. He shall also cause copies of such notice to be exhibited at such several places as he thinks fit.

(1) Every such claimant shall, along with his claim, present full praticulars thereof. (2) Every document on which the claimant founds his claim or on which he relies in support thereof, shall be delivered to the manager along with the claim. (3) If the document be an entry in any book, the claimant shall produce the book to the manager, together with a copy of the entry on which he relies. The manager shall mark the book for the purpose of identification and, after examining and comparing the copy with the original, shall return the book to the claimant. (4) If any document in possession or under the control of the claimant is not delivered or produced by him before the manager along with the claim, the manager may refuse to receive such document in evidence on claimant’s behalf at the investigation of the case.

Every such claim other than the claim of the Government not informed to the manager within the time and in the manner required by such notice shall, except as provided herein, be deemed for all purposes and on all occasions, whether during the continuance of the management or afterwards, to have been duly discharged: Provided that when proof in made to the manager that the claimant was unable to comply with the provisions of section 40, the manager may receive such claim within the further period of two months from the expiration of the original period of two months.

The manager shall inquire into history and merits of every claim received under the preceding section and shall in accordance with the rules to be made under this Ordinance determine the amount of the debts and liabilities, if any, justly due to the several claimants.

If such amount cannot be paid at once, the manager shall then proceed to rank such debts and liabilities according to the order in which they shall be paid and fix the interest, if any, to be paid thereon, respectively from the date of the final decision thereon to the date of the payment and discharge thereof.

When the total amount of the debts and liabilities including those due and incurred to the Government has been finally determined, the manager shall prepare and submit to the Collector a schedule of such debts and liabilities, and a scheme (hereinafer called the liquidation scheme) showing the mode in which it is proposed to pay discharge the same, whether from the income of the property under management, or with the aid of funds raised under the powers hereinafter conferred, or partly in one of such ways and partly in the other.

Every liquidation scheme shall further provide for the continuance of payments to be made by the manager and for the repayment of money, if any, the manager proposes to borrow from Government under this Ordinance and may provide for the improvement of the estate under management either from the said income or with aid of the funds raised as aforesaid or partly in one of such ways and partly in the other.

When the Collector sanctions the liquidation scheme, he shall notify the fact of such sanction at such place and in such manner as the Government may from time to time by rule direct ; and thereupon:- (i) all proceedings, processes, executions and attachments stayed or suspended under section 37 shall be forever barred; (ii) every debt or liability due or owning to any person which was provable before the manager shall be extinguished, and such person shall be entitled to receive under the liquidation scheme the amount, if any, finally awarded to him under the preceding sections in respect of such debt or liability.

(1) If the estate under management or any part thereof be in the possession of a mortgagee or conditional vendee, the manager at any time after the liquidation scheme has been sanctioned as aforesaid, may, by an order in writing, require such incumbrancer to deliver up possession of the same to him at the end of the then current year. (2) If such incumbrancer refuses or neglects to obey such order, the manager may without resorting to a civil court enter upon the property and summarily evict therefrom the said incumbrancer or any other person obstructing or resisting in his behalf. (3) Nothing in this section shall be held to affect the right of any incumbrancer to receive under the liquidation scheme the amount, if any, awarded to him under this ordinance.

Subject to the rules made under this Ordinance, the manager, after the liquidation scheme has been sanctioned as aforesaid, shall have power to sell or grant on lease all or any part of the estate under the management: Provided that the estate or any part thereof shall not be sold or leased for a period exceeding 10 years without the previous permission of the Collector: Provided futher that the Collector shall not give such permission unless he is satisfied that such sale or lease is necessary for the benefit of the estate. The decision of the Collector shall be final.

The manager’s receipt for any moneys, rents or profits raised or received by him under this Ordinance shall discharge the person paying the same therefrom or from being concerned to see to the application thereof.

(1) If the holder of the estate dies after the publication of the order of management, the management shall continue and proceed in all respects as if the holder were still living. (2) Any person suceeding to the whole or any part of the estate under management shall, while such management continues, be subject in respect of such estate to the disabilities imposed under this Ordinance. (3) No civil court shall, during the continuance of the management, issue any attachment or other process against any portion of the estate under management for or in respect of any debt or liability incurred by any such person either before or after his said succession.

The manager appointed under this Chapter shall be deemed to be a public servant under section 21 of the Indian Penal Code.