SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1976 Supreme(Mad) 420

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.S. Kailasam, CJ. and V. Balasubrahmanyan, J.
N.A. Chidambaram Chettiar Firm by its Partner N.A. Chidambaram and others .....Appellant(s)
Versus
The State of Tamil Nadu, represented by the Chief Secretary to Government, Madras and others. .....Respondent(s)
W.P. Nos. 2997 etc., of 1976.
Decided On : 09 August 1976

Advocates:
K.K. Venugopal for G.S. Vaidyanathan, S. Chellaswami, M.S. Sethu, P. Ramaswami Pandian, M. Krishnappan, S. Govind Swaminathan and A.R. Ramanathan, for Petitioners.

Applicability of principles of equitable estoppel.

Headnote:Indian Evidence Act, 1872-Section 115-Applicability of principles of equitable estoppel to State.

       

Kailasam, CJ:-In this batch of wri petitions, a writ of declaration to declare the Tamil Nadu Debt Relief Act, 1976 (President’s Act for Tamil Nadu XXXI of 1976) as unconstitutional, illegal and void, is sought.

2. The matter came up before Mohan, J., for admission, and, as the question involved the tires of the Act, the learned Judge directed the matter to be posted before a Bench and thus these petitions have come up before us for admission.

3. The Tamil Nadu Debt Relief Act (XXXI of 1976) was enacted by the President in exercise of the powers conferred on him by section 3 of the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976. The object of the enactment is stated to be to provide relief from indebtedness to landless agricultural labourers, rural artisans and small farmers in the State of Tamil Nadu. Section 2 of the Act. declares that the Act is for giving effect to the policy of the State towards securing the principles specified in Article 46 of the Constitution. The reason for the enactment is to implement the liquidation of rural indebtedness in stages by imposing a moratorium on recovery of dues from the landless labourers, small farmers, marginal’ farmers and rural artisans and by undertaking legislation for such liquidation before the expiry of the period of moratorium. There is a moratorium on recovery of debts of agriculturists and non-agriculturists upto 15th January, 1977 under the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976 (President’s Act XV of 1976) and the Tamil. Nadu Indebted Persons (Temporary Relief Act 1976) President’s Act (XVI of 1976) with some special provisions under the Tamil Nadu Indebted Agriculturists and Indebted Persons (Special Provisions) Act, 1976 (President’s Act XVII of 1976). The Government off Tamil Nadu has now taken a decision to give permanent relief by way of liquidation of debts to the weaker sections of the rural community who are connected with: agricultural production which is vital for the economic well being of the nation. Accordingly, the debts incurred by a small farmer holding more than 2 units of land in the case of a person, who is a member of the scheduled tribes, and one unit of land in the case of others, or by a rural artisanor a landless agricultural labourer whoseannual household income does not exceed Rs. 2,400 will be deemed to be discharged.

4. Section 4 provides that every debt advanced or incurred before the commencement of the Act, and interest, payable by the debtor to the creditor, shall be deemed to be wholly discharged. It also requires the creditor to return any movable propertypledgedbyadebtor.Section 5 (4) provides that where the movable property pledged by the debtor is in the possession of any transferee of the creditor, the creditor shall redeem the property from such transferee and produce it so that it may be made available to be returned to the debtor. This section also empowers the Tahsildars to enter the premises of the creditor or of the transferee of the creditor for the purpose of the enforcement of the provisions of this Act. Section 6 enables the debtor to make an application to the Tahsildar for an order releasing the mortgaged property and for ultimate delivery to him. Section 9 enacts that no party to any proceeding under the Act shall be entitled to be represented by a legal practitioner. Section 12 throws the burden of proving in any suit or proceeding that the debtor is not entitled to the protection of the Act on the creditor. The Civil Court’s jurisdiction is barred as section 7 provides that the order of the Tahsildar, subject to appeal as provided under the Act, shall be final and shall not be called in question in any Court.

5. On a reference to the various provisions of the enactment. Mr. K.K. Venugopal,leamed counsel for the petitioners in W.P. Nos. 2997 and 2998 and 3027 to 3030 of 1976, submitted that the Act is unduly harsh, most unreasonable and ruinous of the persons like the petitioners who




















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top