Rajasthan Relief of Agricultural Indebtedness Act, 1957

Rajasthan Act No. 28 of 1957

11th September, 1957

An Act to provide for the relief of agriculturists in the State of Rajasthan from indebtedness.

S.1 Short title, extent and commencement

(1) This Act may be called the Rajasthan Relief of Agricultural Indebtedness Act, 1957.

(2) It extends to the whole of the State of Rajasthan.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.2 Definitions

In this Act, unless the subject or context otherwise requires,—

(a) "agriculture" includes,—
- (i) the raising of annual or periodical crops and garden produce,
- (ii) horticulture,
- (iii) the planting and upkeep of orchards,
- (iv) the reserving of land for fodder grazing or thatching grass; and
- (v) the breeding of cattle, camels, sheep or goats;
(b) "agriculturist" means a person who earns his livelihood wholly or mainly from
- (i) agriculture, or
- (ii) rent from agricultural land, in case he belongs to any of the categories of persons mentioned in clauses (a) to (h) of sub-section (1) of section 46 of the Rajasthan Tenancy Act, 1955 (Rajasthan Act 3 of 1955),—and includes a person who ordinarily engages in agricultural labour or who works as an agricultural artisan;
(bb) "bank" means a banking company as defined in section 5 of the Banking Companies

S.2A Application of Act to Scheduled Caste or Scheduled Tribes

From such date as may be appointed in this behalf by the State Government by notification in the Official Gazette, the provisions of this Act shall also apply to all the members of the Scheduled Castes or Scheduled Tribes or both, wherever residing in the state in the same manner as they apply to agriculturists and the word 'agriculturist', wherever occurring in this Act, shall, unless the subject or context otherwise requires, be deemed to include a member of a Scheduled Caste or a Scheduled Tribe irrespective of whether or not he is an agriculturist within the meaning of clause (b) of section 2.

S.3 Establishment of Debt Relief Courts

(1) Notwithstanding anything contained in the Rajasthan Civil Courts Ordinance, 1950 (Rajasthan Ordinance VII of 1950), the State Government may establish Debt Relief Courts with such jurisdiction, as it may determine and may appoint persons possessing the prescribed qualification to be judges of such courts.

S.4 Inapplicability of the Act in certain cases

The provisions of this Act shall not effect claims due in respect of :

(a) rent as defined in clause (22) of section 5 of the Rajasthan Tenancy Act, 1955 (Rajasthan Act 3 of 1955) ;
(b) any liability in respect of any sum due to any society registered or deemed to be registered under the Rajasthan Co-operative Societies Act, 1953 (Rajasthan Act IV of 1953);
(c) any liability arising out of a breach to trust;
(d) any liability in respect of maintenance whether under a decree of a court or otherwise.
(e) any liability due to a bank;
(f) arreares of wages or salary;
(g) any liability in respect of village profits or of land revenue arising between co-sharers and the lambardars or between a proprietor and a thekedar or a farmer of proprietory rights or between co-sharers in ijara and jagir villages;
(h) a mortagage claim against property in the hands of subsequent transferee who has taken the transfer in order

S.5 Abatement or stay of suit or insolvency petition

(1) Whenever a suit or an insolvency petition against a debtor shall have been brought or made and pending in a competent court and such debtor or the person who brought or made such suit or petition applies to such court in this behalf, the court shall:—

(i) abate such suit or petition if it is satisfied on affidavit or otherwise that an application, to the Debt Relief Court under section 6 or section 6A has been made admitted and is pending, or
(ii) stay proceedings in such suit or application, if it is satisfied as aforesaid that the defendant or the opposite party, as the case may be is a debtor within the meaning of this Act:

Provided that, in the case of an application for stay under clause (ii), the court shall fix a period, not exceeding ninety days, within while the application to the debt Relief Court shall be made.

(2) If any such suit or petition as is referred to in sub-section (1) shall have been pending

(i) agai

S.6 Application to Debt Relief Court

(1) Any debtor who is liable for debts individually or jointly with another person, may file an application before the Debt Relief Court having jurisdiction in the area in which he ordinarily resides or earns his livelihood praying for the determination of his debts.

(2) Such an application praying for the determination of the debts, outstanding against a debtor, may also be filed by his creditor or his surety, whether such debtor is liable for such debts individually or jointly with another person.

(3) Every application under sub-section (1) or sub-section (2) shall be signed and verified in accordance with order VI, rule 15, of the first Schedule to the Code of Civil Procedure, 1908 (Central Act V of 1908) and shall contain the following particulars, namely:—

(a) a statement that the debtor Is an agriculturist or a member of a Scheduled Caste or a Scheduled Tribe.
(b) the place where the normally resides,
(c) a statement of all his deb

S.6A Application for recording settlement

(1) If any debtor and all or any of his creditors arrive at a settlement in respect of debt's due by the debtor to such creditors or creditors, the debtor or all or any of such creditors may, within thirty days from the date of such settlement, make an application to the Debt Relief Court having jurisdiction in the area in which the debtor ordinarily resides or earnes his livelihood, praying for recording such settlement.

(2) Every such application shall be in the prescribed form and shall be signed and verified in the manner laid down in sub-section (3) of section 6.

(3) On receipt of such application, the creditor or the Court shall, after giving notice in the prescribed manner to the creditor or the debtor, as the case may be, and after making such inquiry as it thinks fit, record such settlement and certify the same if is satisfied that such settlement is bona fide and is not made with intent to defeat or delay any of the creditors of the debtor and is in the inte

S.7 Preliminary procedure in proceedings under section 6

Upon the admission of an application under section 6 or section 6A all creditors of the applicant, including those to whom any liability referred to in section 4 is, due, shall be joined as parties to the proceedings and Debt Relief Court shall pass an order fixing a date of hearing, shall cause notice of such date, together with a copy of the application, to be served on all such creditors of the applicant and shall cause copies of such notice and application to be affixed to the Court house.

S.8 Submission of claims by creditors

(1) On or before the date fixed for the hearing of the creditors under section 7, which shall not be earlier than two months from the date of service of notice or of the issue of proclamation under Order, V, rule 20, of the First schedule to the Code of Civil procedure 1908 (Central Act V of 1908), every creditor shall submit a statement of his claim signed and verified in the manner prescribed by order VI, rule 15 of the first Schedule to the said Code, such Statement shall be submitted in person, by agent, by pleader or by registered post and every claim not so submitted deemed for all purposes and all occasions to have been discharged as against such debtor or debtors:

Provided that, if the Debt Relief Court is satisfied that for good and sufficient cause any creditor was unable to submit his claims, it may extend the time upon such conditions, as to costs as it may think fit and may revive the claim.

(2) On the date on which the case is fixed for hearing, every cr

S.9 Debt Relief Court to require proof of validity and subsisting character of debts

On the day fixed for the hearing of the case or on any subsequent day to which the hearing may be adjourned, the Debt Relief Court shall require proof of the validity and subsisting character of the debts.

S.10 Determination of debts

(1) Notwithstanding anything contained in any enactment for the time being in force or in any agreement between the parties or the persons through whom they claim, as to allowing compound interest or treating without an account the profits of mortgaged property to be interest on the mortgage money or specifying the mode of otherwise setting accounts, and notwithstanding any writing, statement or settlement of accounts or any agreement purporting to close previous dealings and create a new obligation, the Debt Relief Court shall:—

(i) re-open all transactions carried on during fifteen years immediately proceeding the last transaction or the first day of January, 1952, whichever is earlier,
(ii) ascertain the amount and date of each loan originally advanced, and
(iii) draw up an account, which, in case there are more creditors than one, shall be prepared separately for each of them in the manner laid down hereunder, namely:—
- (a) sep

S.11 Preparation of a scheme of repayment and transfer of debtor's property

(1) When the amount due has been determined under section 10 the Debt Relief Court shall after taking into account the liability of the debtor in respect of claims referred to in section 4, prepare a scheme of payment of the debtor's debts.

(2) If the debtor has transferable property which he is willing to transfer to enable him to repay the whole or any part of his Debts, the Debt Relief Court may sanction such transfer on such conditions as it may think necessary to impose in order to safeguard the rights of the creditors including those to whom any liability referred to in section 4 is due and may grant such reasonable time as is necessary for the debtor to transfer such property:—

Provided that, when there iS any mortgage, lien or charge upon the property, such sanction shall be given only upon terms which will ensure that such mortgage, lien or charge shall subsist to such extent as is sufficient to safeguard the interests of the secured creditor:

Provided

S.11A Settlement during the pendency of proceedings

notwithstanding anything contained in section 10 and 11, if during the pendency of the proceedings before a Debt Relief Court a settlement is arrived at between the debtor and all his creditors and if the Debt Relief Court is satisfied that the settlement has been made by the debtor voluntarily, and is for his benefit such court may make order in terms of such settlement.

S.12 Suspension of payment of instalments

When the land revenue or rent, as the case may be, due by the debtor is suspended or remitted in whole or part, the instalment shall be suspended and shall become payable one year after the last of the remaining instalments. No interest shall be charged on such suspended instalments.

S.13 Invalidity of transfer made by debtors in certain circumstances

(1) No transfer of immovable property shall be valid if made by a debtor in respect of whose debts, proceedings are pending under section 6 or section 6A, unless made with the sanction of the Debt Relief Court.

(2) Every transfer of immovable property made by a debtor, in respect of whose debts a scheme has been prepared under sub-section (1) of section 11, shall be void unless made with the sanction of the Collector within whose jurisdiction, the debtor ordinarily resides or earns his livelihood. The Collector shall not sanction any transfer of such property unless he is satisfied that such transfer will not defeat the claims of any creditors, the payment of whose claims has been ordered by such scheme.

S.14 Application of sections 49 and 50 and Order XXII of the Code of Civil Procedure

If during the period for which the scheme prepared under section 11 is in force, the debtor or the creditor dies, the provisions of section 49 and 50 and Order XXII of the First Schedule of the Code of Civil Procedure, 1908 (Central Act V of 1908) shall, as far as may be, apply.

S.15 Act inapplicable to debt payments by insolvents

Nothing contained in this Act shall apply to the debts payable by any person who has been adjudicated an insolvent prior to the commencement of this Act or, in the case of a member of a Scheduled Caste or a Scheduled Tribe, prior to the applicability thereof under section 2A, provided that the adjudication has been not annulled before or after such commencement or applicability.

S.16 Application of Civil Court procedure to Debt Relief Court

The Debt Relief Court, in regard to proceedings under this Act, shall so far as is practicable, have the same powers and shall follow the same procedure as it would have and follow, if it were a Court of Original Civil Jurisdiction.

S.17 Revision of order of Debt Relief Courts

Any person aggrieved by an order of a Debt Relief Court may, within ninety days of such order, apply to the District Court for revision of the order on any of the following grounds:—

(a) that the order is contrary to law;
(b) that the court has exercised a jurisdiction not vested unit by law or has failed to exercise a jurisdiction vested in it by law:
(c) that the instalments fixed under sub-section (3) of section 11 are inequitable; but, subject to the orders of the District Court on such application and further subject to the provisions of section 18, the order of the Debt Relief Court shall be final.

Explanation.— For the purposes of this section and section 18, 18A and 19, the District court shall be deemed to be the Court of the District Judge within whose civil jurisdiction, the Debt Relief Court is situate.

S.18 Review

A Debt Relief Court, or the District Court which has passed any order under section 17, may either on its own motion at any time or on an application from any person interested made within sixty days of the passing of any order, review the order so passed and pass any other order in reference thereto, as it thinks fit:

Provided that no order once passed shall be varied or reversed unless notice has been given to the persons interested to appear and be heared in support thereof.

S.18A Transfer of proceedings

On the application of any aggrieved person or on its own motion, the District Court may, at any stage of the proceedings, transfer any application for the determination of debts pending before a Debt Relief Court to another Debt Relief Court.

S.19 Application of Civil Court procedure in District Court

The District Court, in regard to proceedings under this Act shall, so far as is practicable and subject to the provision of this Act have the same powers and shall follow the same procedure as it would have and follow under the Code of Civil Procedure, 1908 (Central Act V 1908).

S.20 Payment of Court Fees by creditors in Proceedings under the Act

(1) The credit or shall be liable to pay one fifth of such court fee upon the amount determined as due under section 10, as he would be liable to pay upon a plaint filed for the recovery of that sum, and no further proceedings shall be taken under this Act until the sum due has been paid :

Provided that no court fees shall be payable if court fees have already been paid in respect of a debt.

(2) If such court fees are not paid within such time as the Debt Relief Court considers to be reasonable in each case, it may declare his claim to be discharged for all purposes and all occasions.

(3) when such court fees have been paid, the Debt Relief Court shall tax the amount thereof as costs in the decree prepared under sub-section (4) of section 11 and the amount so taxed shall be payable by the debtor in such annual instalments, in addition to the instalments fixed under sub-section (3) of section 11, as the Debt Relief Court may direct.

S.21 Bar against jurisdiction of courts in certain matter

(1) Subject to the provisions of sections 17 to 19, the jurisdiction of the Civil Courts and the insolvency courts shall be barred in respect of—

(a) any matter pending before a Debt Relief Court:
(b) the claim for any debt which has been discharged or deemed to have been discharged under section 8:
(c) the recovery of any debt, the recovery of which is included in any scheme under sub-section (1) of section (11) for the time being in force and any order of a Debt Relief Court under sub-section (2) & (3) of that section or under section 20, and
(d) any order of a Collector under section 13.

(2) Nothing herein contained shall prevent a court which has stayed proceedings under the provisions of this Act from resuming them and passing such orders in regard to them as are not inconsistent with this Act.

S.22 Limitation

In calculating the period of limitation for any suit filed in, or proceedings before, a Civil Court for the recovery of a debt which was the subject of any proceedings under this Act, the time during which such proceedings had continued, shall be excluded.

S.23 Power to make rules

The State Government may, by notification in the Official Gazette, make rules—

(a) regarding any matter which is required to be or may be prescribed under this Act:
(b) prescribing the manner in which notices shall be issued, served and published under this Act:
(c) prescribing the records to be kept and the returns to be made by a Debt Relief Court:
(d) prescribing the jurisdiction of Debt Relief Courts:
(e) determining the paying capacity of a debtor;
(f) generally for carrying into effect the purposes of this Act.

S.24 Repeal

(1) The enactments specified in the schedule to this Act and all laws amending the same shall stand repealed on the date this Act comes into force.

(2) Such repeal shall not effect any proceedings pending on the date of the commencement of this Act under any law so repealed before any court, board, tribunal or authority and all such proceedings shall continue and be heard and determined by the Debt Relief Court in accordance with such law as if this Act had not been passed.

S.25 General clauses Act to apply

The Rajasthan General Clause Act, 1955, (Rajasthan Act 8 of 1955) in force in the pre-reorganisation State of Rajasthan shall, as far as may be, apply mutatis mutandis to this Act.