Chapter IV EXEMPTIONS

Act shall affect the debts and other liabi1ities of any debtor or small farmer falling under any of the following matters, namely:-

1. (a) any rent due in respect of any property let out to such debtor;
2. (b) any liability arising out of breach of trust or any tortious liability;
3. (c) any liability in respect of wages or remuneration due as salary or otherwise for services rendered;
4. (d) any liability in respect of maintenance, whether under a decree of court or otherwise ; and
5. (e) debt due to:-
   • (i) the Central Government or State Government;
   • (ii) any local authority;
   • (iii) a bank as defined in the Himachal Pradesh Agricultural Credit Operations and Miscellaneous Provision (Bank) Act, 1972 (7 of 1973) ;
   • (iv) a body corporate established under any law for the time being in force;
   • (v) any co-operative society, registered or deemed to be registered under the provision of the Himachal Pradesh Co-operative Societies Act, 1968 (3 of 1969) ;
6. (f) any Government Company within the meaning of the Companies Act, 1956 (1 of 1956);
7. (g) any sum due to Government; and
8. (h) any amount recoverable as arrears of land revenue. CHAPTER V SCALING DOWN OF DEBTS OF SMALL FARMERS

(1) A small farmer may, within such time and in such manner as may be prescribed, make an application to an authority for the local area within which such small farmer ordinarily resides, for determination of this debt. (2) Unless the small farmer has already made an application under sub-section (1) any of his creditors may also make an application to the same authority to which, and in the same manner in which, the small farmer might have applied under that sub-section for determination of the debt in question. (3) If application are made to more than one authority in respect or the same debt, such applications shall, subject to such rules as may be made in this behalf be transferred to and deal with by one authority. (4) An application under sub-section (1) or under sub-section (2) shall be in writing in the prescribed form and shall be accompanied by such fee as may be prescribed.

1. (2) Unless the small farmer has already made an application under sub-section (1) any of his creditors may also make an application to the same authority to which, and in the same manner in which, the small farmer might have applied under that sub-section for determination of the debt in question.
2. (3) If application are made to more than one authority in respect or the same debt, such applications shall, subject to such rules as may be made in this behalf be transferred to and deal with by one authority.
3. (4) An application under sub-section (1) or under sub-section (2) shall be in writing in the prescribed form and shall be accompanied by such fee as may be prescribed.

(1) On receipt of application under section 14 the authority, after giving an opportunity to the parties concerned to appear and be heard, shall determine in respect of the debt in question the amount of the principal and the amount of interest at the rate of six percentum per annum due thereon, upto the date of such determination.

1. (2) When the authority has determined under sub-section (1) the amount of the debt together with interest the decision of the authority to be embodied in an order, shall subject to the provisions of section 20 relating to appeal, be final and shall not be called in question in any civil court.
2. (3) The procedure to be followed by an authority in any proceeding before it shall, subject to the provisions of this Chapter be in accordance with such rules as may be prescribed.
3. (4) An order made under sub-section (2) shall be in the prescribed from and shall include such particulars as may be prescribed.
4. (5) The debt in excess of the debt determined under the provision of this section shall not be recoverable from the small farmer and shall stand discharged.

Notwithstanding anything contained elsewhere in this Act in every case, the authority shall, subjects to such rules as may be made in this behalf by an order, reduce the debt to such amount as does not exceed twenty per cent of the estimated gross value of the agricultural produce earned by the small farmer in the year preceding the year in which the determination takes place, multiplied by seven and shall make a further order that the amount of the debt to be repaid in such monthly or annual instalments covering a period not exceeding seven years either with or without interest, as the authority may determine.

without interest, as the authority may determine.

Notwithstanding anything contained in any law for the time being in force or in any agreement, no small farmer shall be liable to pay after the commencement of this Act-

1. (a) any sum in respect of principal and interest which together exceeds the principal;
2. (b) on account of interest outstanding on the date, upto which such liability is computed a sum greater than the principal outstanding on such date; and
3. (c) any interest other than simple interest at a rate of six per cent per annum or the rate stipulated between the parties, whichever is less:

(1) No civil or revenue court shall entertain a suit, application or proceeding against a small farmer in respect of any debt to which the provisions of this Chapter apply and any suit, application or proceeding pending before such court after the commencement of this Act shall abate.

1. (2) Notwithstanding anything contained in any law for the time being in force, no decree of a civil court in relation to the debt to which this Chapter apply, shall be executed.

(1) The State Government may authorise the Collector to transfer from one authority to another, for disposal, an application made under section 14.

1. (2) An authority to which an application is transferred under subsection (1) may continue the proceeding in connection with the application from the stage which has been reached when the application is transferred.

(1) An appeal may be made in the prescribed manner to an Appellate Officer to be appointed by the State Government, against any decision or order of an authority, made under this Chapter.

1. (2) An appeal under sub-section (1) shall be made within thirty days from the date of the decision or order referred to in that sub-section: Provided that the Appellate Officer may entertain the appeal after the expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.
2. (3) The State Government may make rules regarding the procedure to be followed by an Appellate Officer and the fees to be paid by an appellant for preferring the appeal.
3. (4) The Appellate Officer may, after giving the appellant an opportunity of being heard, either confirm or modify the decision or order made by the authority or direct the authority to take such action as the Appellate Officer thinks fit.
4. (5) An order passed by an Appellate Officer under this section shall be final.