Discharge of debts incurred on or after 29th December, 1976.
(1) Notwithstanding anything in the Andhra Pradesh
(Andhra Area) Agriculturists Relief Act, 1938, the 1Telangana
Money Lenders Act, 1349 F., the Andhra Pradesh (Andhra
Area) Pawn-brokers Act, 1943, the 2Andhra Pradesh
(Telangana Area) Agricultural Debtors' Relief Act, 1956, 3the Telangana (Scheduled Area) Money Lenders Regulation,
1960, the 3Telangana Indebted Agriculturists, Landless
Labourers and Artisans (Temporary Relief) Act, 1976 or any
law for the time being in force, or any contract or other instrument having the force of law with effect on and from
the commencement of this Act, every debt borrowed or
incurred during the period between the 29th December,
1976 and 4[the 31st May, 1989] including interest, if any,
owing to any creditor by an agricultural labourer, a rural
artisan or a small farmer shall be deemed to be wholly
discharged.
(2) (a) No Civil Court shall entertain any suit or other
proceeding against the debtor for the recovery of any
amount of the debt, including interest, if any, which is
deemed to be discharged under sub-section (1):
Provided that where any suit or other proceeding is
instituted jointly against the debtor and any other person,
nothing in this sub-section shall apply to the maintainability
of such suit or proceeding in so far as it relates to such
other person.
(b) All suits and other proceedings including appeals,
revisions, attachments or execution proceeding pending
4[as on the 31st May, 1989,] against any debtor for the
recovery of any such debt, including interest, if any, shall
abate:
Provided that nothing in this clause shall apply to the
sale, in respect of any such debt of
(i) any movable property held and concluded
before commencement of this Act;
(ii) any immovable property, confirmed before such
commencement.
(c) Every debtor undergoing detention in a civil prison
in execution of any decree for money passed against him by
a Civil Court in respect of any such debt, including interest if
any, shall be released.
(3) (a) Every movable property pledged by a debtor
whose debt is deemed to be discharged under sub-section
(1), shall stand released, in favour of such debtor and the
creditor shall be bound to deliver the same to the debtor
forthwith.
(b) Every mortgage executed by such debtor in
favour of the creditor shall stand redeemed and the
mortgaged property shall be released in favour of such
debtor.
Explanation: Nothing in this section shall be construed
as entitling any debtor for refund of any part of any debt
repaid or interest paid already by him or recovered from him
before, such commencement.
1. Substituted by the Telangana Adaptation of Laws (No.2) Order, 2016,
issued in G.O.Ms.No.46, Law (F) Department, dated 01.06.2016.
2. Repealed by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016.
3. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
4. Substituted by Act No.2 of 1990.