Vidhi Codex

The Punjab Relief of Indebtedness Act, 1934

The Punjab Relief of Indebtedness Act, 1934

Finance193440 sections8 chapters

The Punjab Relief of Indebtedness Act, 1934, is a legislative measure designed to protect vulnerable debtors—primarily agriculturists and those with limited assets—from predatory lending practices and harsh debt recovery methods. It establishes Debt Conciliation Boards to facilitate the amicable settlement of debts, effectively acting as a mediator between creditors and debtors. The Act imposes caps on interest rates, enforces the principle of "Damdupat" (where interest cannot exceed the principal), and provides specific protections against the attachment of essential assets like livestock and residential homes. For the ordinary citizen, this Act serves as a safeguard against financial ruin, ensuring that debt recovery does not strip a person of their livelihood or basic dignity.

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Part I Part I

  1. 1Short title, extent and commencement
  2. 2Government may, by notification, appoint in this behalf [and in the transferred territories on the 30th December, 1960.

Part II Part II

  1. 3Amendment of section 10 of the Provincial Insolvency Act, 1920
  2. 4Amendment of section 74 of the Provincial Insolvency Act, 1920

Part III Part III

  1. 5Amendment of the Usurious Loans Act, 1918
  2. 6Retrospective effect

Part IV Part IV

  1. 7Interpretation clause
  2. 8Setting up of Debt Conciliation Boards
  3. 9Government may direct.
  4. 10Provided that no application shall be made if the dcbtor's debts exceed ten thousand rupees or such larger sum as the '[State] Goverllinent may prescribe for any particular area.
  5. 11Particulars to be stated in application
  6. 12Procedure on receipt of application
  7. 13Notice calling upon creditors to submit statements of debts
  8. 14Procedure on submission of statement of debts
  9. 15Board to attempt amicable settlement
  10. 15APower of Board to adjudicate on genuineness or enforceability of debts
  11. 16Power of board to require attendance of persons and production of documents and to receive evidence
  12. 17Registration and effect of agreement
  13. 18Dismissal of application in default
  14. 19Bar to successive applications
  15. 20Grant of certificate by board in respect of debts
  16. 20ADecision of Board to be final
  17. 21Bar of civil suits
  18. 22Bar of appeal or revision
  19. 23Power of board to review its order
  20. 24Provided further, that no application for review shall be entertained if presented more than twelve months after the date of the order which the person interested seeks to have reviewed.
  21. 25Bar to new suits and applications and suspension of pending suits and applications
  22. 26Extension of limitation
  23. 27Members of boards deemed to be public servants
  24. 28Power to make rules
  25. 29Penalty for breach of the rules

Part V Part V

  1. 30Damdupat

Part VI Part VI

  1. 31Deposit in Court
  2. 32Power of State Government to make rules

Part VII Part VII

  1. 33Amendment of section 1 (3) (a) of the Redemption of Mortgages (Punjab) Act, 1913

Part VIII Part VIII

  1. 34Immunity from arrest
  2. 35Amendment of section 60 of the Code of Civil Procedure, 1908
  3. 36Amendment of Order XXI, Rule 2, of the Code of Civil Procedure, 1908
  4. 37Penalty for false claim of a principal sum
  5. 38Penalty for use of documents containing false entries

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