Vidhi Codex

The Telangana Jagirdars Debt Settlement Act, 1952

The Telangana Jagirdars Debt Settlement Act, 1952

General195249 sections4 chapters

This Act establishes a legal framework and dedicated administrative boards to settle and adjust debts owed by Jagirdars residing in Telangana whose total liabilities equal or exceed five thousand rupees. It empowers debt settlement boards to examine financial transactions, recalculate principal and interest under capped rates, void fraudulent property transfers, and scale down total outstanding debts according to the debtor's paying capacity. In cases of severe insolvency, the board can liquidate non-exempt assets to distribute proceeds among creditors. This legislation provides structured relief to financially distressed former landholders while ensuring an equitable, binding settlement process for creditors.

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Chapter II Constitution and Powers of Board →

  1. 7Procedure before Board.
  2. 10Power of Board to extend time.

Chapter III PROCEDURE FOR SETTLEMENT OF DEBTS →

  1. 11Application for settlement of debts.
  2. 12Every creditor and debtor to file a true and correct statement before Board.
  3. 13Application by debtor jointly and severally liable.
  4. 14Assignees from non-debtor not entitled to benefit of this Act.
  5. 16Settlement during pendency of proceedings before Board or Court in appeal.
  6. 17Certain settlements to be void.
  7. 18Application under section 11 or 15 to be made only in respect of debtor whose debts are not less than Rs. 5,000.
  8. 19Withdrawal of applications.
  9. 20Consolidations of applications.
  10. 21Service of notice on debtors and creditors to submit statements of debts.
  11. 22Debts in respect of which no application for adjustment or settlement is made to be void.
  12. 25Transfer of pending suits, appeals, applications and proceedings to the Board.
  13. 26Taking of accounts.
  14. 27Examination of creditor and debtor.
  15. 28Mode of taking accounts.
  16. 29In certain cases rent may be charged in lieu of profits.
  17. 30Notice to Jagir Administrator Co-operative Societies, Registrar Local authorities and other.
  18. 31Board’s duty to determine particulars, value, etc. of property.
  19. 32Fraudulent alienations or encumbrances void.
  20. 33Value of property of debtor to be determined by Board in prescribed manner.
  21. 34Paying capacity.
  22. 37Procedure for further scaling down of debts.
  23. 38No recovery of amount in excess of debts scaled down.
  24. 39Debts not to be scaled down in case of collusion.
  25. 40Ex parte proceedings if any party does not appear.
  26. 41Reopening of award and resettlement of debts.
  27. 43Postponement of payment of instalment.
  28. 44No alienation by debtor before discharge of debts valid.
  29. 45Board may order sale of debtor’s property in liquidation of his debt.
  30. 46Pleaders etc., excluded from appearance.
  31. 47Appeals.
  32. 48Grounds of appeal.
  33. 49Court-fees.
  34. 50Notice how served.
  35. 51Provisions of Civil Procedure Code to apply to proceedings.

Chapter IV INSOLVENCY PROCEEDINGS. →

  1. 52Board to declare debtor insolvent in certain circumstances.
  2. 53Procedure in insolvency proceedings.
  3. 54Distribution of assets of insolvent.
  4. 55Bar to application in insolvency in other Courts.
  5. 56Appeals barred.

Chapter V MISCELLANEOUS. →

  1. 57Period of proceedings before Board under this Act to be excluded.
  2. 58Alienation of property before repayment of loan prohibited.
  3. 59Power of Government to authorise any person to advance loans to debtors.
  4. 61Operation of Act XVI of 1956 excluded from debts to which the present Act applies.

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