The Travancore-Cochin Indebted Agriculturists Relief Act, 1956

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THE TRAVANCORE-COCHIN INDEBTED AGRICULTURISTS RELIEF ACT, 1956. (President's Act III of 1956) CONTENTS.

(1) This Act may be called the Travancore-Cochin Indebted Agriculturists Relief Act, 1956. (2) It extends to the whole of the State of Travancore-Cochin. (3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

In this Act, unless the context otherwise requires,- (a) "Agriculturist" means a person who has an interest other than interest as a simple mortgagee in any agricultural or horticultural land, but does not include- (i) any person liable to pay land revenue exceeding one hundred rupees per annum in any year after 1952-53; (ii) any person assessed to profes~ion tax on income derived from a professiOn other than. ag~ICultm:al under any law governing municipal or local bodies m India. on a half-yearly income of more than nine hundred rupees m any half-year after 1952-53; (iii) any person assessed in any half-year after 1952-53 to property or house tax .on an annual re~t~l value of not less than six hundred rupees m respect of bmldmgs ( othe~ than a building in which he lives) or lands other than agricultural lands under any law governing municipal or local bodies in India; (iv) any person assessed to sales-tax on a total turn-over of not less than twenty thousand rupees in any year after 1952-53 under the Travancore-Cochin General Sales-tax Act, 1125 (XI of 1125), or under the law of any other State relating to sales-tax; (v) any person assessed to mcome-tax under the Indian Income-Tax Act, 1922 (II of 1922), in any year after 1950-51; (vi) any person assessed to agricultural income-tax in any year after 1950-51 under the Travancore-Cochin Agri-cultural Income-tax Act, 1950 (XXII of 1950), or under the law of any other State relating to agricultural income-tax; (vii) a firm registered under the Indian Partnership Act, 1932 (9 of 1932), or a company as defined in the Companies Act, 1956 (1 of 1956), or a corporatiOn formed in pursuance of an Act of Parliament of the United Kingdom or of any specwl Indian law; Explanation /.-Where a joint Hmdu family or tarwad tavazhi, or illom is an agriculturist, every coparcener or member of the tarwad, tavazhz, or illom, as the case may, be, shall be deemed to be an agriculturist, provided that he does not fall under any of the categories specified in sub-clauses (i) to (vi). Explanation ll.-The provisions of this Act shall not apply to any person who is not an agriculturist on the commencement of this Act; (b) "debt" means any liability in cash or kmd, whether secured or unsecured, due from an agriculturist on the com-mencement of this Act, whether payable under a .contract or under a decree or order of a Court, civil or revenue or other-wise, but does not include- (i) any sum payable to the State or the Central Government or to ~my local authority; (ii) any sum payable to any co-operative society mcl.udmg a land mortgage bank, registered or deemed to be registered under the Travancore-Cochin Co-operative Societir~ Act, 1951 (X of 1952), or to the Travancore Credit Bank constituted under the Travancore Credit Bank Act ] 113 (IV of 1113), provided that the right of the society' or the Bank to recover the sum did not arise by reason of an assignment made subsequent to the commencement of this Act; (iii) any liability arising out of a breach of trust; (iv) any liability in respect of maintenance; (v) any liability in respect of wages or remuneration due as salary or otherwise for services rendered; or (vi) any liability incurred or arising under any c~i~ty or kuri registered or licensed under the Travancore Chitties Act, 1120 (XXVI of 1120), or the Cochin Kunes Act, 1107 (VII of 1107). Explanation /.-Whereas a debt has been renewed or in-cluded m a fresh document executed after the commencement of this Act, whether by the same debtor or by his heirs, legal representatives or assigns or by any other person acting on his behalf or in his interest or as a result of a partition, in favour of the same creditor or his he1rs, legal representatives or assigns or any other person actmg on his behalf or in hia interest or as a result of a. partition, the amount outstanding on the commencement of this Act and included in the document executed after such commencement shall alone be treated as the debt for the purposes of this Act. Explanation 11.-Where a debt has been split up after the commencemnt of this Act among the heirs, legal representa-tives or assigns of a debtor or a creditor or as a result of a partition and fresh documents have been executed in respect of different portions of the debt, each of the different portions shall be a debt for the purposes of this Act.

(1) No suit for recovery of a debt shall be instituted, and no application for execution of a decree in respect of a debt shall be made, against any agriculturist in any civil or revenue court before the expiry of six months from the commencement of this Act. Explanation /.-Where a debt is payable by an agriculturist ..._ jointly or jomtly and severally with a non-agriculturist, no suit or applicatiOn of the nature mentioned in this sub-section shall be instituted or made either against the non-agriculturist or against the agriculturist before the expiry of the period men-tioned in this sub-section. Explanation 11.-For the purposes of this Act, a suit in which a decree in respect of a debt is prayed for shall be deemed to be .a suit for the recov.ery of a debt notwithstanding that other rehefs are prayed for m such suit and a decree shall be deemed to be a decree in respect of a debt notwithstanding that other reliefs are granted in such decree: Provided that a suit for possession of land shall not be deemed to be a s.uit for recovery of a. debt by reason merely of mesne profits bemg also prayed for m such suit: Provided further that nothing contained in this section shall apply to any portion of a decree other than that relating to a debt. (2) Notw1thstandmg anything contained m sub-section (1), where a creditor files a suit for recovery of a debt du~­mg the period specified in sub-section (1) or after the. agri-culturist has paid or deposited into Court the sums and n?-stal-ments specified in sub-section (1) of Section 4 and Section 5 and durmg the period when he is so entitled to pay, the Court shall in decreemg the suit direct the plamtiff to bear his own eosts and pay the costs of the defendant who is an agriculturist: Provided that nothmg contained m this sub-section shall be a bar to the Court passing any order as to costs as between the plaintiff and other defendants who are not agriculturists. (2) Notw1thstandmg anything contained m sub-section ( 1), where a creditor files a suit for recovery of a debt du~ing the period specified in sub-section ( 1) or after the agriculturist has paid or deposited into Court the sums and n?-stalments specified in sub-section ( 1) of Section 4 and Section 5 and durmg the period when he is so entitled to pay, the Court shall in decreemg the suit direct the plamtiff to bear his own eosts and pay the costs of the defendant who is an agriculturist: Provided that nothmg contained m this sub-section shall be a bar to the Court passing any order as to costs as between the plaintiff and other defendants who are not agriculturists.

(1) Notwithstanding any law or custom for the tlme bemg in force, or any contract, or any decree or order of Court to the contrary, any debt due by an agriculturist may be discharged by repayment of the principal amount of the debt outstanding in ten equal half-yearly instalments together with such interest as would be payable under the provisiOns of Sectlon 5. The instalments shall be payable on or before the last day of February and August of each of the five years commencing on the commencement of this Act. Explanation.-In the case of a decree, the amount decreed shall be deemed to be the principal. (2) VVhere in respect of a decree for debt passed before the commencement of this Act, a debtor fails to make any one of the payments specified in sub-section ( 1) and Section 5, the decree-holder shall be entitled to execute the decree in respect of the instalment which is in arrear. (3) In any sUit filed after the commencement of this Act, the Court m decreemg the sUit shall provide for the Immediate payment of such instalment or mstalments as would have become due under the proviswns of sub-section ( 1) and Section 5 and the balance in further instalments as specified therein. (4) VVhere in any suit for recovery of a debt pending at the commencement of this Act, the debtor claims to be an agriculturist, the Court shall, if the debtor is an agriculturist, pass a decree for immediate payment of such instalment or instalments as would have become payable under the provisions of sub-section (1) and Section 5 and the balance in further instalments as specified therein. (5) Nothing contained m this Act shall bar the Court from passing a decree or making an order m an application for execution of the decree under such terms and conditions as may be. more _favourable !o the debtor than those provided for in th1s Sect10n and SectiOn 5 either of Its own motion upon a consideration of all the circumstances of the case or upon an agreement between the parties. (6) Where m any suit to recover a debt or in any application for the execution of a decree therefor the debt 1s payable by an agriculturist jointly or Jointly and severally with a non-agriculturist, the Court shall pass a decree or make a~ order for the payment of the debt found due from the agriculturist as provided m this section and SectiOn 5 as against the agriculturist and make such provision in the decree or order against the non-agriculturist as the circumstances of the case may warrant. (7) The provisiOns of sub-section { 1) and Section 5 shall, for purposes of execution, be deemed to be a subsequent order of Court withm the meanmg of clause {b) of sub-section {1) of SectiOn 48 of the Code of C1vil Procedure, 1908 (5 of 1908).

{ 1) The interest outstandmg at the commencement of this Act on any debt shall be paid in ten equal half-yearly mstalments, each such mstalment being payable along with the correspondmg instalment of the principal amount specified m sub-section (1) of Section 4: Provided that the amount of the mterest payable by an agnculturist under sub-section { 1) shall not exceed one-half of the prmcipal amount outstanding at the commencement of this Act. {2) Notwithstanding anythmg contamed m sub-section ( 1), no creditor shall be reqmred to refund any sum paid to him which IS m excess of the amount calculated as due under sub-sectiOn ( 1), nor shall such excess amount be liable to be adjusted towards any future mterest or the prmcipal amount of the debt. (3) The mterest payable after the commencement of this Act shall be at the rate applicable to the debt under any law or custom for the time being m force or under any contract or under a decree or order of any Court, or at six per cent per tJ. annum simple mterest, whichever Is less, and the amount of interest accrued due on the principal amount outstanding till the date of payment of each of the instalments under sub-section ( 1) of SectiOn 4 shall be payable along with such instalment.

( 1) An agnculturist may deposit any of the mstalmcnts as provided m Sectwns 4 and 5 mto the Court havmg jurisdiction to entertain a suit for recovery of the debt or mto the Court whi<'h passed the decree, as the case may be, and apply to the Court to record part-satJsfaclwn of the debt. ( 2) Where any such application is made, the Court shall pass an order recording part-satisfaction of the debt if the amount deposited is the correct amount. :3) The Court shall dismiss the application- { a) If the applicant is not an agriculturist; or (b) if the liabihty Is not a debt; or (c) If the amount deposited is insufficient and tM applicant on being required by the Court to deposit the deficit amount within a time fixed by the Court, fails to do so. ( 4) Any agncultunst entitled to make such deposit may, before the date on wh1eh any mstalment is due, apply to the Court having JUrisdiCtiOn under sub-sectiOn (1) for an ext~nSIOn of time for making the deposit of the whole or a_ny portiOn of such instalment and the Court may, after notice to the creditor, extend the time for payment of such instalment or part thereof for such period as it thinks fit. (5) The procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908), for the tnal of suits shall, as far as may be, apply to applications made under this section.

An appeal shall he from an order passed by a Court under SectiOn 6, as if such order relates to the execution, discharge or satisfaction of a decree within the meaning of SectiOn 47 of the Code of Civil Procedure, 1908 (5 of 1908).

(1) Every transfer of Immovable property made by a debtor entitled to the benefits of this Act after the commencement of this Act and before the complete discharge of his debt, shall, in any suit or other proceeding with respect to such transfer, be presumed, until the contrary IS proved, to have been made with intent to defeat or delay the creditors of the transferor. ( 2) Where a debtor is entitled to the benefits of this Act has allowed, in collusiOn with another, his immovable property to be sold after the commencement of this Act through Court with a view to defeat or delay his creditors, the sale shall be voidable at the optwn of any creditor so defeated or delayed.

In computing the period of limitation for a smt for recovery of a debt or an application for the execution of a decree In respect of a debt, the time during which the institutiOn of the suit or the making of the application was barred under Section 3 shall be excluded.

Wh_e~e a debt_ i~ payable by an agru:;ulturist either by himself or JOintly or JOintly and severally with a non-agriculturist and where the agriculturist makes payment or deposits amount towards that debt as provided for in Sections 4 and 5 or Section . 6, a fresh period of limitation shall be computed from the time when the payment or deposit was made both against the agriculturist and non-agriculturist.

The Government may make rules for carrying out the purposes of this Act.