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THE KERALA DEBT RELIEF ACT, 1977
(Act 17 of 1977)
CONTENTS
Preamble Sections :
I . Short title, extent and commencement.
2. Definitions.
3. Discharge of debt.
4. Reconveyance of property
5. Constitution of Tribunals.
6 Appointme 1t of appellate authorities.
7. Powers of Tribunal and appellate authority.
8. Legal practitioners not to appear before Tribunals and appellate authorities .
9. Burden of proof.
10. Bar of jurisdiction of civil courts. II • Acu to over-ride other laws, contracts, etc.
12. Power to make rules. ,
13. Repeal and saving . '
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.1.0~ THE KERALA DEBT RELIEF AC r, 1977• (ACT 17 OF 197?)
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An Act to provult! relzef from zndebtedness to certain persons in the State. of Kerala. _ Preamble.-.WHEREAS it is t:Xpedient to provide reJi~f from indebted- ness to ce. tam persons in the Stdte of Kerala;
BE it enacted in the Twenty-e1ghth Year of the Republic . of India as follows:-
}. Short tztle, extent and commencemen;t-(1) This Act may be, called;the Kerala Debt Relief Act, 1977.
(2) It extends to the whole of the State of Kerala.
(3) It shall be deemed to have come into force on the 13th day of Ja,nuary, 1977.
2. Deftmtzons.-In this Act, unless the context otherwise requires::_
(1) "appellate authority" means an appellate authority appoint-ed under section 6; · '
(2) "creditor" shall include the i· e1rs, legal representative~·1and a'~igns of the crccitor; • '
(3} "debt" means any liability in cash or kind, whether securrd or unsecured. due from or inrurrcd by a debt'lr on or before the date of com- mencement ol this Act, whether payable under a contract, or under a decree or order ot any court, or otherwise, and subsisting on that date but does not include- . ' • •-' ··•·
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(a} any l>um payable-to-
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(i) the Government of Kcrala or the Government of India or the Government of any other State or Union Terr1tory in India or any lo(al authonty, or
(i1) the Reserve Bank of India or the State Bank of India or any subsidiary bank with the meaning of clause {k) of_ section 2 of the State Bank of India (Sub~1diary Bank') Act, '1959 or the 'J ravancore Credit Bank (m liquidation) constituted 'under the1 Travancore Credit Bank Act, IV of 1113; or ' •·1,.,.. . ~ (ii1) a corporation owned or coPtrolled by the Gov,ernment of Kerala or the Government of any i)ther State or Union Territory in , India or the Govcrnmrnt of India or a Governmer.t Company· as defined in the Companies Act, 1956; or
(iv) the Tea Bo.-1rd constituted undl!r the Tea Act, 1953, or the Coffee Board constituted under the Coffee Act, 1942, or the Rubber Board constituted under the Rubber Act, 1947, ·or the Cardamom Boa•d constituted under the Cardamom Act, 1965; or *R~ceived the assent of the Pre
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(v) any co-operative soci,ty, mcludmg a Land Mortgage Bank, registered or deemed to be registered under the Co-operative ~ocieries Act for the time beiug in force; or
. (b) any sum·payable to any con esponding new bank spec•fied in
•, column (2) of the first Schedule to the Banking Companies · '• (Acquisition and Transfer of Undertakings) Act, 1970; or
(c) any habil1ty arising out of a breach of trust or a 1y tortious habil.ty;
•• I I' "' or · :..•· (q)· any liahility,h: respe~t of maintenance, whether under a decree of court or otherwise; or
(e) any liabtlity in respect of wages or remuneration due as salaty or otJ.erwise for sen ices rendered; or
(f) an'y' debt Which represents the price of go JdS purchased; or _(g). any liability for which a charge is provided under sub·clau'e (b)
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of clause ( 4) of section 55 of the Transfer of Property Act, 1882; or
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(h) • ~ny rent p·ayable in respect of any building; or (i), any rent or michavaram payable in respect ol any land; 6r
(j) any debt or debts due to a widow at the commencement of this , Act, provided that the value of the property owned by her _, ,. at, such commencement, mcluding the principal amount of th~ debt or debts so due, does not exceed ten thousa 1d rupees. ~.-.; Explanatzon·.-For the purp:>~es of this sub-clause, the house in which the widow hve•, her wearing apparel or ~imilar personal belongings shall not be regarded as property; or
~ , (k) any IiabiJity incurred or arising under a chitty or kuri which is
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' , , registered or licenced under the Trav.mcore Chttties Acr, 1120, ' or the ( 'cichin'Kuries Act, VII of II 07, or the Kerala Chit ties Act, , I 975, or conducted under any chit fund scheme, and w~tch has · ~ not terlT'inated two years before the commencement of hts Ac :
. P,rovidecl' that nothing in this sub·c);>use shall apply to the liab1lity of a foreman incurred or arising under any such chi tty or kun where the forem::m is a;co·ope ative society registered or deemed to be registered under the Co-operative S;:~cteties Act for the t1me being in force. Expla'nation.-For the purposes of this sub-clause, a chitty or kuri shall be deemeo to nave trrminated- \ I ••
(1) When the period fixed in the variola or vaimbu or kuripattika , or the period as altered by a subsequent specic~.l resolution for ( 'the duration oft he chi tty or kuri, hils expired; or :,(-ii) - when the legal repre:.ent~tive of a decea~ed foreman or the - 1 guardian of a foreman of unsound mind or the subscriber or subscribers selected therefor fa,b or fail to conduct the chitty or , \, ! • kuri or to ma.ke suitable arrangements tor the further conduct of
. ·l',the_chitty or_kuri; or .. -I
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(iii) on the failure of the foreman to pay the prize amount to the subscriber withm one month from the due date thereof; or ·
(iv) on the failure of the foreman or foremen to conduct the chitty or kuri at any instalment or on any other date before the next instalment as may be agreed upon in writing by a majority of the non-prized subscribers:
Provided that if there are more foremen than one and one or more of such foren en is or are living and is or are not disqualified to conduct the chitty or kuri, the chitty or kuri shall not be deemed to have ter~inated if there is provi~ion in the vanola or vaimbu or kuripattika enabling the remaming foreman or foremen to conduct the chitty or kuri or if the n:m· prized subscribers agree by a special resolution to the condut of the chi tty or kuri by the remaining fo1eman or foremen; or
(1) any debt due to any banking company as defined in the Banking Regulation Act, 1949; or
(m) any amount due on account of any goods to a financier who financed the purchase of such goods and whose principal business is to finance the purchase or goods, or
(n) any sum advanced for the purposes of agriculture by any institu- tion receiVing financial assistance from the Agricultural Refinance and Development Corporation established under the Agricultural Refinance and Development Corporation Act, 1963. Explanation I. -For the purpo~es of this clause,-
(i) the liability of a surety who is a debtor shall be deemed to be a debt withm the meauing of this Act, notwithstanding that the principal debtor is not a debtor for the purposes of this Act; (1i) where a debt has been split up in any manner whatsoever, whether before or after the c0mmencement of this Act, and fresh docu- ments have been executed in respect of different portions of the debt, each such different portion shal! be a debt. Explanatzon II- Where 1 he debt is a liability m kind, the value of the commodity shall be commuted at the market rate preva1ling on the date on which the debt was incurred;
(4) "debtor" means any person whose annual income does not exceed three thousand rupees, from whom any debt is due, but does not include-
( I) any person from whom dt!bt or debts exceeding three thousand rupees (excluding interest) is or are due:
(ii) a firm registered under the Indian Partnership Act, 1932, or a company as defined in the Companies Act, 1956, or a corporation formed in pursuance of an Act of Parliament of the United Kingdom or of any special Indian Law.
Explanation.-For the purposes of this clause, the term "person" shall include a family;
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1 • {5) "fam1ly" means a H\ndu undivided family or a Marumakka- tbayam tarwad or tavazh1 or an Aliyasanthana kutumba or kavaru or a Nambudiri 1llom;
(6) "interest" means any amount or other things paid or payable in excess of the principal amount borrowed or pecuniary obligation incurred, or, where anythmg has been borrowed in kmd, m excess of what has been so borrowed, by whatsover name such amount or thing may be called, and whether the same is paid or payable entirely in cash or entirely in kind or partly in cash and partly in kmd and whethe,· the same is expressly JXen- tioned or not in the document or contract, if any;
(7)
(8)
" pay", with its grammatical variations, includes deliver;
"prescribed" means prescnbed by rules made under this Act;
. (9) "prmcipal amount" means the amount originally advanced together with such sum, if any, as has been subsequently advanced, notwith- standing any stipulatiOn to treat any interest as principal and notwithstand- ing that the debt has been renewed or mcluded in a fresh document, whether by the same debtor or by his heirs, legal representative~ or assigns or by any other person acting on his behalf or in his interest, and whether in favour of the same cred1tor or his heirs, legal representatives or assigns or of any other person acting on his behalf or i t1 his mterest;
I (10) "Tribunal" means a Tribunal constituted under sect1on 5.
3. Discharge of debt.-Notwithstanding anythmg contamed in any other law for the time being in force, or many contract or other instrument having force by virtue of any such law, or in any decree or order of court, with effect on and from the commencement of this Act-
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(b)
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• every debt and the interest thereon payable by a debtor to a creditor ~h•dl be deemed to be wholly discharged; no civ1l court shall entertain a,...y suit or other proceeding against debtor for the recovery of any debt or part of a debt or any interest thereon;
all suits and other proceedings (includmg appeals, revis1ons petitions, applications for review, proceedings for attachment and execution proceedmgs) pending at such commencement against any debtor for the recovery of any debt shall abate:
Provided that nothing in this clause shall apply to- ' - (i) the sale of any movable property conducted and concluded before the commencement of th1s Act; '
(ii) the sale of any immovable property confirmed before- such com- mencement:
Provided further that where a suit or other proceeding is instituted jointly against a debtor and any other person, nothing in this section shall ·apply to the maintainability of such smt or other proceeding in so far as tt relates to such other person;
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(d) every debtor undergoing detention in a civ1l pnson in execution of any decree for money passed against him by a CIVIl court in respect of any debt shall be released;
(e) every movable property pledged by a debtor before the commen- cement of this Act :.nall stand released in favour of such debtor and the creditor shall be bound to deliver possession of such property to the debtor;
(f) every mortgage executed by a debtor in favour of creditor sha!l stand redeemed and the creditor shall be bound to deliver possession of the mortgaged property to the debtor.
.. Explanation I. -In this section, the term 'suit' shall not include a claim to a Sr>t off made in a suit instituted by a debtor.
Explanat,on I/.-For the purposes of this. section, a suit in which a decree m respect of a debt is prayed for shall be deemed to be a suit for the recovery of the debt notwithstanding that other rehefs are prayed tor in such suit, and a decree shall be deemed to be a decree in respect of a 'debt notwithstanding that other reliefs are granted in such decree:
Provided that a suit or decreer~ r possession of land shall not be deemed to be a suit for recovery of, or a decree in respect of, a debt by. reason merely of mense profits being also prayed for or included in such suit. or c'ecree.
Explanatzon /l/.-Nothing m this section shall debar a decree-holder ~ from enforcing reliefs other than in respect of a debt, where the decree- contains independent rebcfs. , ,
Explanatzo11 JV.-Nothmg in this section shall be construed as entitling any debtor to the refund of any part of any debt or interest thereon already repaid by him or recovered from h1m before the commencement of this ,# Act.
4. Reconveyance of property.-(!) Any debtor entitled to the deli~ery''~r possession of any property under clause (e) or clause (f) of sect1on 3 or any other person on behalf of such debtor may apply to the Tribunal within three months from the commencement ofthis Act or w1thm such further period as may be notified by the Governrrent in this behalf, for such delivery of possession.
(2) On receipt of an application undei' sub-section ( 1), the · Tribunal shall make necessary inquiries in respect of such applicatiOn and, if 1 t is satisfied that the applicant or the person on whost> behalf the apphcat10n has been made b entitled to the delivt ry of possession of the property mentioned in the application, it shall, by order, direct the person m possession of such property to deliver po~ses~ion thereol to the appl.ic~t or t? the person ori whose behalf the apphcauon has been made, w1thm a penod of thirty days from the date of strvice of the order: .1,. 1
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Provided that no order under this sub-section shall be m'lde unless the person in possession ot the property has been given a reasonable opportunity uf be.ng heard.
(~) Every order made under sub-section (2) shall be served ,on the person 'for whom it is intended,- ·
(a) by delivering or tendering it to that person; or
. . (b) if it cannot be delivered or tendered to that person, by deliver- ing or tendering it to any officer of sur h per;;on or any adult memher of the family of such person or by affixmg a copy thereof on the outer door or some conspicuous part of the premise~ m which that person is known to have last resid~d or earned on business or personally worked for gam; or
(c) faihng service by any of these means, by registered post
(4) Any person aggrieved by,an order of the Tribunal under sub- section (2) may, withm a period .,f thirty days from the date of service of the order, prefer an appeal to the appellate authority, and the decision of the appellate authority on such appeal sha.ll be final and shall not be called in questio'n in any court of law:
Provided that before taking a decis'on on the appeal, the appellate author .ty shall give the opposite party an opportumty of being heard.
(5) Where an order under sub-scctt(m (2) has not been complied with, and-
(a) an appeal has not been prefLrred within the time allow~d for such appeal; ·or
(b) an appeal having been preferred has been dismissed, the Tribunal shall cause the property to which the order reldtes to be delivered to the debtor·by puttmg him In possession of that property. · 5. Constztution of Tribunals.- (I) The Government may, by notifica- tion in·the Gazette, constitute for such area as may be specified therein a Tribunal for the purpose of performing the fu .. ctions of a Tnbunal under this Act. ,
(2) A Tribu11al shall consist of a sole member who shall be an officer not below the rank ofTahsddar appointed by the Government.
6. Appointment of appellate authnntzes - (I) The Government may, by notification in the Gazette, appomt for such area as ·may be specifi• d therein an appellate authority for the purposes of thts Act.
(2) An appellate authority shall be an officcr·not below the rank of Revenue Divisional Officer. , .
7. Powers of Tribunal a"~d appellate authonty.-(1) •Evert Tribunal and every . ppellate authorit, shall have the powers of a Civil court while trymg a suit under the Code of CivJ I P roct dure, '1908 (Central Act 5 of 1908), m respect of the following n atters, namely:- r
·(a) summoning and enforcing the attendance of any person and examining him on oath;
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(b) requiring the discO\·ery and production of any document;
(c) any other matter which may be prescribed.
• (2) The decisions of the Tribunals and the appellate authorities under this Act shall have the force of a decree of a ciVIl court.
8. Legal practitzoners not to appear before TTibunals and appellate authorities.-Notwithstandmg anything contained in any law for the time being in force, no le~1] practit1oner shall be allowed to appear in any proceedings before a Tnbunal or an appellate authority under thi~ Act.
9. Burden of proof-Notwithstanding anything ( ontaincd in any law for the time being in force, in any suit or other proceeding, the burden of provmg that a debtor is not entitled to protect1on under the provisions of this Act shall be on the creditor.
I 0. Bar of jurisdiction of ctUiltourts -No civ'l court shall have juris- diction to decide or deal with any questio 1 or to det.-rmine any matter wh1ch is, by or under this Act, required to be decided or dealt with, or to be det .. rmined by, the Tnbunal or the appellate authority.
II. Act to over-ride other laws, contracts, etc.-The provision5 of this Act shall have dfect notwithstanding anything inconsistent therewith conrained in the Code of Civil Procedure, 1908 (Central Act 5 of 1908), or in any other law for the time bemg in force, or m any custom, usage or contract, or in any decree or order of a court or other authority
12. Power to make rules -(1) The Government may, by notification in the Gazette, make rules for carrying out the purposes of this Act.
(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Ass·mbly while it IS in session for a total period of fourteen day~ which may be comprised in one session or in two success1ve sessions, and 1f before the exp1ry of tht> sess10n in which it is so laid or the session immediately following the Legisladve Assembly makes any modification in the ruk or dec1des that tre rule should not be made, the rul~ shall thereafter have eff, ct only in su-::h modified form or be of no effect, as the case may be; so however that ar.y such modification or annulment shall be without prej11dice to the validity of anything previously done under that rule.
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