Tamil Nadu Debt Relief Laws (Second Amendment) Act, 1978*
| [Tamil Nadu Act No. 27 of 1978]* | [13th June, 1978] |
An Act farther to amend the Tamil Nadu Debt Relief Laws
Be it enacted by the Legislature of the State of Tamil Nadu in the Twenty-ninth Year of the Republic of India as follows:-
* For Statement of Objects and Reasons, see Tamil Nadu Government Gazette Extraordinary, dated the 31st March, 1978, Part IV-Section 1, Pages 343-344.
* Received the assent of the President on the 8th June, 1978, first published in the Tamil Nadu Government Gazette Extraordinary on the 13th June, 1978 (Vaikasi 30, Kalayukti (2009-Tiruvalluvar Andu))
1. Short title.- This Act may be called the Tamil Nadu Debt Relief Laws (Second Amendment) Act, 1978.
2.- The amendment made by this section has been incorporated in the principal Act, namely, the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976 (President's Act 15 of 1976).
3.- The amendment made by this section has been incorporated in the principal Act, namely, the Tamil Nadu Indebted Persons (Temporary Relief) Act, 1976 (President's Act 16 of 1976).
4.- The amendment made by this section has been incorporated in the principal Act, namely, the Tamil Nadu Debt Relief Act, 1976 (President's Act 31 of 1976).
5. Exclusion of time for limitation and dissolution of stay of proceedings in respect of certain suits and applications.- (1) Where, on or after the 15th day of January, 1976, but before the date of publication of this Act in the Tamil Nadu Government Gazette, any suit for the recovery of any sum due to any company which is declared to be a Nidhi or Mutual Benefit Society under sub-section (1) of section 620-A of the Companies Act, 1956 (Central Act 1 of 1956), could have been instituted or any application for the execution of a decree passed in any suit could have been made but for the fact that the institution of the suit or the making of the application was barred by section 3 of the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976 (President's Act 15 of 1976), or section 4 of the Tamil Nadu Indebted Persons (Temporary Relief) Act, 1976 (President's Act 16 of 1976), as the case may be, then, in computing the period of limitation or limit of time prescribed for such suit or application, the period commencing on and from the 15th day of January, 1976 and ending with the date of publication of this Act in the Tamil Nadu Government Gazette shall be excluded.
(2) Where any proceedings in any of the suits or applications of the nature mentioned in sub-section (1) were stayed by sub-section (1) of section 4 of the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976 (President's Act 15 of 1976), or of section 5 of the Tamil Nadu Indebted Persons (Temporary Relief) Act, 1976 (Presidents' Act 16 of 1976), as the case may be, the stay effected in respect of such proceedings by sub-section (1) of the said section 4 or 5, as the case may be, shall stand dissolved and such suit or application shall be proceeded with from the stage which had been reached when further proceedings in such suit or application were stayed.
6. Removal of doubts.- (1) Any liability in respect of any sum due to any company which is declared to be a Nidhi or Mutual Benefit Society under sub-section (1) of section 620-A of the Companies Act, 1956 (Central Act 1 of 1956), shall be deemed never to have been discharged, every suit or other proceedings (including appeal, revision, attachment or execution proceedings) pending at the commencement of the Tamil Nadu Debt Relief Act, 1976 (President's Act 31 of 1976) (hereinafter referred to as the said Act) against any debtor for the recovery of any debt in respect of any such liability (including interest, if any) shall be deemed never to have abated, every movable property pledged by a debtor in respect of such liability in favour of such company shall be deemed never to have been released in favour of such debtor and every mortgage executed by the debtor in respect of such liability in favour of such company shall be deemed never to have been redeemed and the mortgaged property shall be deemed never to have been released in favour of such debtor, under section 4 of the said Act, and any suit for the recovery of any sum due to such company from any debtor and any application for the execution of a decree passed in any such suit may be instituted, or made, as if the said Act, as amended by section 4 of this Act, was in force at the relevant time.
(2) Every proceeding instituted under the provisions of the said Act, in respect of such liability as is referred to in sub-section (1) and pending before the Tahsildar of other authority on the date of publication of this Act in the Tamil Nadu Government Gazette shall abate.
(3) Nothing contained in this section shall be deemed to invalidate any proceeding in which the order passed has been executed or satisfied in full before the date of publication of this Act in the Tamil Nadu Government Gazette.