Discharge of Debt

(1) Notwithstanding anything contained in the Puducherry Pawn Brokers Act, 1966 (Act No. 11 of 1966), the Puducherry Money Lenders Act, 1970 (Act No. 26 of 1970) and the Tamil Nadu Debt Relief Act, 1976 (President’s Act No. 31 of 1976), as extended to the Union territory of Puducherry or in any other law for the time being in force or in any contract or other instruments having force by virtue of any such law, or in any decree or order of Court and save as otherwise expressly provided in this Act, and in particular sub-section (2) with effect from the commencement of this Act,- (a) every debt advanced or incurred before the date of commencement of this Act (including interest, if any) and payable by the debtor to the creditor shall be deemed to be wholly discharged; (b) no Civil Court shall entertain any suit or other proceeding against the debtor for the recovery of any amount of such debt (including interest, if any): Provided that where any suit or other proceeding is instituted jointly against the debtor and any other person, nothing in this section shall apply to the maintainability of such suit or proceeding in so far as it relates to such other person; (c) all suits and other proceedings (including appeals, revisions, attachments or execution proceedings) pending on the date of 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 - (i) the sale of any movable property held and concluded before the commencement of this Act; (ii) the sale of any immovable property confirmed before such commencement; (d) 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, in any), shall be released; (e) every movable property pledged by a debtor shall stand released in favour of such debtor and the creditor shall be bound to return the same to the debtor forthwith; (f) every mortgage executed by the debtor in favour of the creditor shall stand redeemed and the mortgaged property shall be released in favour of such debtor. Explanation. – I. In this section, the term "suit" shall not include a claim to a set-off made in a suit instituted by a debtor. Explanation. – II. For the purposes of this section, a suit in which a decree in respect of a debt is prayed for shall be deemed to be a suit for the recovery of the debt notwithstanding that other reliefs are prayed for in 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 or decree for possession of land shall not be deemed to be a suit for recovery of or a decree in respect of a debt by reason merely of mesne profits being also prayed for or included in such suit or decree. Explanation. – III. Nothing in this section shall debar a decree holder from enforcing reliefs other than in respect of a debt where the decree contains independent reliefs. Explanation. – IV. Nothing in this section shall be construed as entitling any debtor to the refund of any part of any debt or interest thereon already repaid by him or recovered from him before the commencement of this Act. (2) Nothing contained in this Act shall apply to any debtor who is entitled to the benefit of the Tamil Nadu Debt Relief Act, 1976 (President’s Act No. 31 of 1976), as extended to the Union territory of Puducherry only in so far as any debt to which that Act applies, is concerned.