The Punjab Backward Classes (Grant of Loans) Act, 1957

(1) This Act may be called the Punjab Backward Classcs (Grant of Loans) Act, 1957. (2) It cxrends to the whole of the Slate of Haryana. (3) l~shalicomeinto forceat once.

In this Act, unless the context otherwise requires,- ((4) "Backward Classes" means persons belonging to the Scheduled Castes and ~chedu'led Tribes as norified in the Scheduled Castes and ' ~ c h e d u led Tribes (Modification) Order, 1956, or other classes of citizens d-eclarcd -by Government-:to be Backward Classes from time to ~irne-; (b) "borrower" means an individual belonging to a backward class to whom a loan has been granted under this Act ; (c) "Controlling Authority" means the authority appointed by the Government by notification in the officjal Gazette to be competent to sanction a Loan under thc powers conferred by this ~ c r a n d to tkc such stcps as are necessary for the enforcement of the provisions of this Acr ; (d) "Govcmrnent" means thc Government oi the State of Haryma ; (e) "the loan" means interest-free loan granted by thc Government to a borrower ; (f) "prescribed" means prcscribed by rules madc under this Act.

The amounl of loan which may bCgrantcd to a borrower undcr this Acr shall not exceed ten thousand ruppes.

(1) Any person belonging to the Backward Classes may submit to the Controlling Authority an application in the prescribed form, supported by an affidavit, stating the amount of loan desired by him, the purpose for which it is desired and the manner in which the repayment of the loan, if granted to him is proposed. (2) The Controlling Authority, if satisfied that the applicant is a person belonging to the Backward Classes, may sanction the loan to the extent of the amount stated in the application or any lesser amount, subject to a maximum of [ten thousand rupees] in each case.

(1) When an application for loan has been sanctioned, the applicant shall execute a bond in the prescribed form undertaking to apply the money lent to the purpose or purposes for which, and to fulfil the conditions on which, the loan has been sanctioned. (2) For the loan so sanctioned, the applicant shall furnish one surety; and the person and property of the applicant as well as of the surety shall be liable for the repayment of the loan and costs, if any, incurred in making or recovering the loan: Provided that the Controlling Authority may in any case exempt the applicant, from furnishing a surety.

When the applicantion for a loan has bccn sanctioned the applicant shall execute a bond in the prescribed form undeaakirtg ta apply the money to the purpose or purposes for which, and to fulfil the conditions on which, the loan is and shall undenake that if it is not used for sucll purposes or if there is any breach of such condilions. the amount of the loan shall be rccoverable from him in the prescribed manner..

The loan sha!l be repayable by the borrower in 20 half-yearly equated insralments: .

Providcd that the repayment of inslalrnents shall commence or! the expiry of four years horn rhe dare of payment of the loan.

Any borrower who makcs default in the repaymenr or lhc loan or any instalmenls thereof shall be bound-

(a) to comply with any general or special ordcr af the Controlling Authority relating to the inspection of the premises, buildings, machinery and s~ock in hani purchased or I-rircd by the borrower with the aid of. rhe loan grantcd to him ; and

(b) to furnish 'any information which the Controlling Aurhority may requirc in respect of rhe purpose or purposes Por which the loanm was granted or of the manner in which the loan has been or is being utilised.

If the borrower fails without reasonable cause-

(i) to comply with any order madk Or to furnish information required under sectton 8, or 'K":

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(ii) if thc Controlling ~uthorit~,,after inspection provided for in sectiofi '8 or otherwise, is satisfied that the money lent is qot being applied to Ihe purpose or purposesJfor which i r was lenr or rhat,any condition on which it was granted is not being duly fulfilled, rhe Controlling Authority may dcclare, notwithstanding anything con~ained in the bond executed by the boffower, that' the loan shall be immediately recoverable and shall give nbtice of such declaration to the borrower.

Within six weeks of the receipt of the notice under section 9, the borrower may appeal against the declaration of the Controlling Authority to the Government, and the decision or the Government thereon shall bc final.

(1) When thc loan or an instdlmcnt lhereof falls -due and is not paid on or beforc rhe due date or when the Inan has becn declared immehately recoverable under section 9, and subject to the order made on appeal under the preceding &chon, the Controlling Authoriry may cause to be served on the borrower, a notice calling upon him to pay the sums due within such rime and LO such office? as may be fixed therein.

(2) I n case of deIault in complying wich such notice the sums specfied in the notice including costs, if any, incurred by the Gvvernrnent may be realized as arrears of land revenue.

The decision of the ~overnrneht as to whether the conditions laid down in or under any of rhe provisiDh~'of this Act 11avc been satisticd shall be final and no suit shall be broughl in any civil coun to sct aside or modify any order made thcreur~der, nor shall rhe same be questioned by any court of laiv in any proceedings whatsoe~er.

No prosecution. suit or other proceedings shall lie against the Government or any ofliccr or authority vested with powers under this Ac! for any~hins in good fuith done or intended to be dane thcrcundel'.

(1) Thc Govcmment may make rules consistent with this Act for the carrying out of all or any of i rs purposes. (2) In particular and without prejudice to the gencrali ty oft he foregoing powcr, the Government may make rules regulating or de~ermining all or any of the following matters, namely :- ti) the iorms of the applications to be madc and deeds to be exccuted in rcspect of loans ; (ii) the mode in which payment of loans is to be madc to borrowers ; (iii) to forms of notices to be given or declarations to be made by the Controlling Authori~y : and (iv) the purposes for which Ioans may be sanctioned under this Act.