Uttar Pradesh act 2 of 1979 : The UTTAR PRADESH( DEBT RELIEF (AMENDMENT) ACT, 1978

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No. 28/XVII-V-1--107-1978 Dated Lucknow, January 6, 1979

TN pursuance of the provisions of clause (3) of Article 348 of the Constitution of India:, the Governor is pleased to order the publication of the following English translation of the Uttar.: Pradesh Rin Anutosh (Sanehodhan) Adhiniyam, 1971 (Uttar Pradesh Aclhini am Sankhya 2 or 1979), as passed by th, Uttar Pradesh Legislature and assented to by the President on January 2;i: 1979:

THE UTTAR PRADESH( DEBT RELIEF (AMENDMENT) ACT, 1978

(U. P. Aar NO. 2 OF 1979) (As passed by the Uttar Pradesh Legislature)

AN

ACT

to amend the Uttar Pradesh Debt Relief Act, 1977 IT IS HEREBY enacted in the Twenty-ninth Year of the Republic of India as

follows:-

This Act may be called the Uttar Pradesh Debt Relief (Amendment) Act, 1978.

In section 2 of the Uttar Pradesh Debt Relief Act, 1977 hereinaftcr,. referred to as the principal Act—

in clause (4), for the words "heirs of such person", the "heirs or assignees of such person" shall be substituted and be deemek always to have been substituted;

in clause (8), after the word "person" where it occurs for the' first time, the word "residing in a village" shall be inserted and be deeniar always to have been inserted;

after Explanation III, the following Explanation shall be insertcgy and be deemed always to have been inserted, namely:—

"Explanation IV—Where a person has transferred any propeetY' before the commencement of this Act and any proceeding for their annulment of such transfer under the Provincial Insolvency 1920 is pending on the date of such commencement, then the ques'ig tion whether the transferor is a marginal farmer or a small farmer.,? shall be thtermined only after considering the final_orders madc such proceeding.s,"

Short title.]

Amendment of section 2 of U.P. Act 4 of 1977.

mnénsrmam we, await, 1979 iswmfim 25 ii— 5 (as) we (a) fr‘, m "W"%WW"WFFE§W"H§T fair j'i nfii‘rnfit tar-Earn anrfirrfians‘mfiin ;' (a) mafia) imfimmfifimfiafifififlhfifihfifi‘. fiens‘rm‘“, WTlT'l— “(a) mmwme new mmsmmm marlin-2113113; ' (w) Where-fire»: WW} . i; (a) WWWW; ' (a) tie-rem an finmmfifiwnmfinfim" am 23 In lG—Wfl niafinmafi amzsfi, he: "xvii” simmers "maqum't; [infirm Arafat nrc‘r't‘r n17: iii—cremains were—rim. i‘. am 29 an 17—innfnt‘anzrannm 293?, arm-uh) i, m "statesman-(aw Wm $173311 31R ”fitmfia’nfifi"filffiiml m 32 art ls—Efiflfilfiwfiafil’ dzx‘iarin'mrrsi—sfifina‘rmfifirfirfifianmi gm“ {Waterman seria— “fiii‘a amnfmfifi eqfina as at We” I new a, (fist first %a suit, «feral Dated Lucknow, January 6, 1979 TN pursuance of the provisions of clause (3) of Article 348 of the Constitution of Ind , the Governor is pleased to order the publication of the following English translation of the Uttar- ‘ Pradesh Rin Anutosh (Sanshodhan) Adhiniyem, l97é- (Uttar Pradesh Adhini} am Sankhya 2 oi ; 1979), as passed by the Uttar Pradesh Legislature and assented to by the President on January 1979 : THE UTTAR PRADESH DEBT RELIEF (AMENDMENT) ACT, ‘1978 (U. P. ACT N0. 2 OF 1979) (As passed by the Uttar Pradesh Legislature) AN 'ACT to amend the Uttnr Pradesh Debt Relief Act, 1977 It IS HEREBY enacted in the Twenty-ninth Year of the Republic ofIndia’as ‘ follows :— ‘ Short title.] 1. This Act may be called the Uttar Pradesh Debt Relief (Amendment Act 1978. “ Amendment of ’2. In section 2 of the Uttar Pradesh Debt Relief Act, 1977 hereinafter Sec‘w“ 2°f 1“" referred to as the principal Act— ' .t Act 4 of 1977. , , (a) in clause (4), for the words “heirs of such person”, the wor‘ “heirs or assignees of such person” shall be substituted and be deemed always to have been substituted; ' . ,7. (b) in clause (8), after the word “person” where it occurs for the i first time, the word “residing in a village" shall be inserted and he deem always to have been inserted; ' ' (c) after Explanation III, the following Explanation shall be insert and be deemed always to have been inserted, namely:— “Exp/anatiOn IV—Where a person has transferred any property before the commencement of this Act and any proceeding forth? annulment of such transfer under the Provincial insolvency A 1920 is pending on the date of such commencement, then the qv tion whether the transferor is a marginal farmer or a small farm shall be dztermined only after considering the final‘orders made such proceedings," ‘ '

Itcn srini ertirtintirr mAz, 6 A a, 1979

3. In section 4 of the principal Act, fat clause (b), the following clause shall

be inserted and be deemed always to have been inserted, namely :—

"(b) every debt payable on the date of such commencement by a debtor whose annual household income exceeds two thousand and four hundred rupees shall be wholly discharged, if the debtor—

(I) has paid, in the discharge of his debt, a sum exceeding or equivalent to double the amount of principal in respect of the debt, at any time before such commencement, and such discharge shall be effective from the date of such commencement;

(ii) pays after the date of such commencement, a sum which, together with any sum already paid in the discharge of such debt, is equivalent to or exceeds double the amount of principal in respect of the debt, or the amount actually due whichever is less, and such discharge shall be effective from the date of such payment."

4. In section 5 of the principal Act—

(a) in clause (b), for the existing proviso, the following proviso shall be substituted and be deemed always to have been substituted, namely:—

"Provided that— where a suit or proceeding is instituted jointly against such

debtor and any other person, nothing in this clause shall apply to the maintainability of the suit or proceeding in so far as it relates to such other person;

,1

where a suit is instituted against a debtor jointly in respect I

of a debt advanced before as well as after the commencement of this Act, nothing in this clause shall apply to the maintainability of the suit in respect of the debt advanced after such commencement;"

•

(b) in clause (c), after the proviso, the following proviso shall be t!CL:1,

I inserted and be deemed always to have been inserted, namely:— , IF

En

"Provided further that the proviso to clause (b) shall =tails

mutandis apply to a suit or proceeding referred to in this clause as it applies to a suit or proceeding specified in that clause;"

(c) in clause (e), the words "if in possession of such property" shall be omitted ; •

(d) after clause (e), the following clause shall be i user' ed , and be deemed always to have been inserted, namely :—

"(f) every mortgage of immovable property executed by a debtor shall stand redeemed and the mortgaged property shall be released in favour of the debtor."

5. After section 6 of the principal Act, the following section shall be inserted,

namely :— "6-A. (I) A debtor referred to in clause (f)section 5 may make an appli-

cation to the Debt Settlement Officer having jurisdiction over Release of immovable the area within which such debtor ordinarily resides, for an property, order releasing the mortgaged property and for the grant of a certificate of redemption.

• (2) (a) On receipt of such application and after inquiry conducted

in the manner prescribed, the Debt Settlement Officer shall pass an order releasing the mortgaged property, and grant a certificate of re- demption in the prescribed form which shall be admissible as evidence of such redemption in any proceeding before any court or other authority.

(b) The Debt Settlement Officer shall also direct the creditor or the transferee of the creditor—

to deliver possession of the mortgaged property to the debtor on or before the date, specified in the order, if the debtor is not already in possession of the mortgaged property; and

to produce on or before the date specified in the order, the mortgage deed or other document and the Debt Settlement Officer shall make an endorsement of redemption of the mortgage deed or other document.

Amendment of section 4.

Amendment Of section 5.

Insertion of new section 6-A.

! t

j:•:;11;;r.:. '• -

em sin era-term 'me, 6 m, 1979 ,‘ I 3. In section 4 of the principal Act, for clause (12), the following clause shall be inserted and be deemed always to have been inserted, namely :— “(b) every debt payable on the date of such commencement by a debtor whose annual household income exceeds two thousand and four hundred rupees shall be wholly discharged, if the debtor— (i) has paid, in the discharge of his debt, a sum exceeding or equivalent to double the amount of principal in respect of the debt, at an time before such commencement, and such discharge shall be effective from the date of such commencement; i (ii pays after the date of such commencement, a sum which, to her with any sum already paid in the discharge of such debt, is equivalent to or exceeds double the amount of principal in respect of the debt, or the amount actually due whichever is less, and such discharge shall be effective from the date of such payment.” 4. In section 5 of the principal Act—- (a) in clause (b), for the existing proviso, the following proviso shall be substituted and be deemed always to have been substituted, namely:— “Provided that— ‘ (i) where a suit or proceeding is instituted jointly against such ‘ debtor and any other person, nothing in this clause shall apply to the maintainability of the suit or proceeding in so far as it relates to such other person; (ii) where a suit is instituted against a debtor jointly in respect of a debt advanced before as wel as after the commencement of this Act, nothing in this clause shall apply to the maintainability of the suit in respect of the debt advanced after such commencement;" ([2) in clause (c), after the proviso, the following proviso shall be inserted and be deemed always to have been inserted, namely :— “Provided further that the proviso to clause (b) shall mutatis mil/(mdis apply to a suit or proceeding referred to in this clause as it applies to a suit or proceeding Specified in that clause;” (0) in clause (e), the words “if in possession of such property” shall be omitted ; h.‘ . ’ (d) after clause (e), the following clause shall be inserted, and be deemed always to have been inserted, namely :— "Sfl every mortgage of immovable property executed by a debtor shal stand redeemed and the mortgaged property shall be released in favour of the debtor." . 5]; After section 6 of the principal Act,'the following section shall be inserted, mime y :— “6—A. (l) A debtor referred to in clause (f) section 5 may make an appli- ReleaSe of cation to the Debt Settlement Oflicer having Jurisdiction over immovable the area within wluch such debtor ordinarily resides, for an property. order releasing the mortgaged property and for the grant of a certificate of redemption. (2) (a) On receipt of such application and after~ inquiry conducted in the manner prescribed, the Debt Settlement Officer shall pass an order releasing the mortgaged property, and grant a certificate of re- demption in the prescribed form which shall be admissible as evidence of such redemption in any proceeding before any court or other authority. (b) The Debt Settlement Officer shall also direct the creditor or the transferee of the creditor— (i) to deliver possession of the mortgaged property to the debtor on or before the date, specified in the order, if the debtor is not already in possessron of the mortgaged property; and (ii) to produce on or before the date specified in the order, the 31:39ng deed or tpther doeungntdand the Debt Settlcmcnt Ofliccr in e an en orsemen 0 re e tion of he 0 a or other document. mp t' ‘ m "'5 3e deed 5 Amendment or i. * . section 4. r . J nae." Amendment of section 5. inseniopor new ; , f ‘i section 6A. ,{ ‘ , - - i. it i i

S Sf3/471 81711.6717 ;r4e, 6 W9-41"1 197 9

Amendment of section 19.

Amendment ni - section 25.

Amendment or seetion 38,

Pending orders under sub-section (2), no creditor or the transferee of the creditor shall transfer or otherwise assign his interest in, or exercise his right of foreclosure in respect of the property mortgaged by the debtor.

Where the mortgaged property has been transferred or any right therein has been assigned to any bank by the creditor, the Debt Settlement Officer shall recover from the creditor such amount as is due to such bank in respect of the said mortgaged property, as if, it were an arrear of land revenue, and shall pay the same to the said bank."

6. In section 8 of the principal Act, in sub-section (1), for the words "by the Tahsildar under section 6," the words "by the Tahsildar under section 6 or by the Debt Settlement Officer under section 6-A", shall• be substituted.

7. In section 10 of the principal Act, in sub-section , (3), the words "sub- section (1), or" shall be omitted.

8. In section 12 of the principal Act, for the words "not exceeding one year" the words "not exceeding two years" shall be substituted.

9. In section 14 of the principal Act, for the words "Every transfer of pro- perty made by a small farmer," the words "Every transfer of immovable pro- perty made on or after October 10, 1975 by a small farmer" shall be substituted, and be deemed always to have been substituted.

10. In section 17 of the principal Act, in sub-section (1), for the words "six months", the words "two years" shall be substituted and be deemed always to have been substituted.

11. In section 18 of the principal Act, for clause (e), the following clauses shall be substituted and be deemed always to have been substituted, namely—

"(e) the particulars of the annual household income of the small farmer;

Cl) the gross value of the agricultural produce for the year referred to • in section 20."

12. In section 19 of the principal Act, in sub-section (I), for the words "at the rate of six per cent per annum," .the words "at the rate specified in sub-section (2) of section 9" shall be substituted and be deemed always to ' have been substituted.

13. In section 20 of the principal Act, for the words "together with", the l• word "including" shall be substituted.

14. The existing section 21 of the principal Act, shall be re-numbered as-r-1 sub-section (1). thereof, and after sub-section (1) as so re-numbered, the follow-, , ing sub-section shall be inserted, namely:—

"(2) Every debt payable by a small farmer on the date of com- ' mencement of this Act in respect of which no application is made under " section 17 shall, on the expiry of the period referred to in sub-section (1) of hat section and subject to the provisions of section 33, stand discharged and shall not be recoverable.-

15. In section 25 of the principal Act,—

(a) in clause (n), after the word "debtor", the words "or the small farmer" shall be inserted and be deemed always to have been inserted;HI

(b) after clause (o), the following clauses shall be inserted and be deemed always to have been inserted, namely—

"(p) every liability incurred or arising under a chit conducted under any chit fund scheme ;

every debt due to a widow;

every dower debt;

every debt arising out of breach of contract of service."

16. In section 28 of the principal Act, after the word "debtor", the words "or the small farmer" shall be inserted and be deemed always to have bee inserted.

Amendment of section 8.

Amendment of section 10.

Amendment of section 12.

Amendment of section 14.

Amendment of section 17.

Amendment of section 18.

Amendment of section 20.

Amendment of section 21.

Amendment of section 8. Amendment section 10. Amendment section 12. Amendment section 14. Amendment section 17. Amendme nt section 18. Amendment section 19. Amendment Section 20. Amend ment section 21. Amendment of ' se ction 25. of of of' of of of of of Amendment of section 28. E'fi‘t sen nan-armrest; ,5 sine—fr, 19 7s (3) Pending orders under sub-section (2), no creditor or the transferee of the creditor shall transfer or otherwise assign his interest in, or exercise his right of foreclosure inrespect of the property mortgaged 3' by the debtor. 3-. (4) Where the mortgaged property has been transferred or any right therein has been assigned to any bank by the creditor, the Debt Settlement Officer shall recover from the creditor such amount as is due to such : ' bank in respect of the said mortgaged property, as if, it were an arrear =" of land revenue, and shall pay the same to the said bank.” " ' 6. In section 8 of the principal Act, in sub-section (1), for the words “by U‘, the Tahsildar under section 6,” the words “by the Tahsildar under section 6 1‘ or by the Debt Settlement Oflicer under section 6-A”, shall be substituted. _7. In section 10 of the principal Act, in sub-sectionp(3), the words “sub- section (1), or" shall be omitted. " 8. In section 12 of the principal Act, for the words “not exceeding one year” the words “not exceeding two years” shall be substituted. 9. In section 14 of the principal Act, for the words “Every transfer of pro- perty made by a small farmer,” the words “Every transfer of immovable pr0< perty made on or after October 10, 1975 by a small farmer” shall be substituted, and be deemed always to have been substituted. ’ 10. In section 17 of the principal Act, in sub-section (1), far the words “six months”, the words “two years” shall be substituted and be deemed always to have been substituted. 11. In section 18 of the principal Act, for clause (e), the following clauses shall be substituted and be deemed always to have been substituted, namely— “(e) the particulars of the annual household income of the small farmer; (f ) the gross value of the agricultural produce for the year referred to in section 20.” 12. In section 19 of the principal Act, in sub-section (1), for the words I “at the rate of six per cent per nnnum,”-the words “at the rate spemfied 1n _' p sub-section (2) of section 9” shall be substituted and be deemed always to? have been substituted. 13. In section 20 of the principal Act, for the words “together with”, th word “including” shall be substituted. 14. The existing section 21 of the principal Act, shall be re-nnmbered a sub-section (1). thereof, and after sub-section (1) as so re-numbered, the follow g ing sub-section shall be inserted, namely:~ - ' “(2) Every debt payable by a small farmer on the date of com- mencement of this Act in respect of which no application is made. under section 17 shall, on the expiry of the period referred to in sub-section (1) of hat section and subject to the provisions of section 33, stand ; discharged and shall not be recoverable.” 15. In section 25 of the principal Act,—— (a) in clause (12), after the word “debtor”, the words“or the small farmer” shall be inserted and be deemed always to have been inserted; (b) after clause (a), the following clauses shall be inserted and be.» deemed always to have been inserted, namely—— ”(12) every liability incurred or arising under a chit conducted. under any chit fund scheme; (11) every debt due to a widow; (r) every dower debt; (5) every debt arising out of breach of contract of service." 16. In section 28 of the principal Act, after the word“debtor", the words “or the small farmer" shall be inserted and be deemed always to have 1.999 inserted. ,

By order, R. C. DEO SHARMA,

Sachiv.

PRE0110ft0-.-70110 347 tisto (cargt0) —6-1-79--( 3391 --1978--650 ;IWO

597 Sit7 3411Itre7 IMF, 6 qi at it 1979

17. In section 29 of the principal Act, in sub-section (1), after the words "production of documents", the words "and consolidation of cases" shall be inserted.

18. In section 32 of the principal Act, for the existing marginal heading, the following marginal heading shall be substituted, namely:—

!Prohibition of appearance of legal practitioners."

Amendment o section 29.

Amendment of section 32.

'~ V meamw,sm,197g V 7 17.. In section 29 of the principal Act, in sub-section (1), after the words Amendment 0" ' “production of documents", the words “and consolidation of cases" shall be “cm“ 29- inserted. ‘. 18. In section 32 of the principal Act, for the existing marginal heading, “PENN!“ 0“ ; the following marginal heading shall be substituted! namely:— s°°“°“32- i‘l’rohibition of appearance of legal practitioners." By order, R. 0. DEC SHARMA, ‘ Sachz'v.