(1) This Act may be called the Jammu and Kashmir Debtors Relief Act, 1976.
Unless there is anything repugnant in the subject or context,––
(1) The Government may, for the purpose of settlement of debts, by order notified in the 1[Official Gazette]––
Within six months or such or such longer period as the Government may, by notification specify for a particular area, from the date on which a Board is established under section 3, a debtor or any of his creditors shall apply to the Board appointed for the area in which a debtor resides or holds any land to effect settlement between the debtor and his creditors.
Every application to a Board shall be in writing and be signed by the applicant and verified in such manner as may be prescribed.
(1) Every application presented by a debtor shall contain the following particulars and shall be in such form as may be prescribed :––
(1) On receipt of an application under section 4, the Chairman of the Board shall pass an order fixing a date and place for hearing the application.
(1) On the date fixed, the Board shall issue a notice calling upon every creditor of the debtor to submit in writing a statement of debts owed to such creditor by the debtor.
(1) Every creditor submitting in compliance with a notice issued under sub-section (1) of section 8 a statement of the debts owed to him shall furnish, along with such statements, full particulars of all such debts, and shall at the same time, produce all documents (including entries in books of account) on which he relies to support his claims together with a true copy of every such document :
The Board shall call upon the debtor and each creditor to explain his case regarding each debt, and shall use its best endeavours to induce them to arrive at an amicable settlement.
If a creditor or debtor, as the case may be, challenges the genuineness or enforceability of a debt included in an application but other than a debt payable under a decree or order of a civil court which has become final or denies the liability to pay such debt, the Board shall adjudicate upon the issue.
Any Board may exercise all such powers connected with the summoning and examining of parties and witnesses and with the production of documents as are conferred on a civil court by 1[the Code of Civil Procedure, 1908 (5 of 1908)], and every proceeding before the Board shall be deemed a judicial proceeding.
(1) If the debtor and all or any of the creditors come to an amicable settlement, the Board shall forthwith reduce such settlement to writing in the form of an agreement setting forth the amounts payable to each creditor and the manner in which and the time at which they are to be paid. Such agreement shall be read out and explained to the parties concerned, and shall be signed or otherwise authenticated by the Board and the parties.
Every debt due from a debtor who resides or holds any land within the local area for which a Board is established under section 3 in respect of which no application had been made under section 4 within the period specified in the said section 4, shall be extinguished.
The provisions of section 14 shall not apply to a debt in respect of which a suit or other proceeding pending in any civil or revenue court is transferred by that court to the Board under sub-section (1) or sub-section (2) of section 29.
(1) Where, during the hearing of any application made under section 4, any creditor refuses to agree to an amicable settlement, the Board may, if it is of opinion that the debtor has made such creditor a fair offer which the creditor ought reasonably to accept, proceed to record such evidence as the parties may produce and pass such order as may appear to it just and equitable :
(1) Subject to the provisions of this Act, the Board shall have full powers to decide any question which may arise in any proceedings under this Act.
Notwithstanding anything contained in any law for the time being in force and save as otherwise provided in this Act– –
A Board may, on the application of any person interested, review any order passed by it other than an order passed in review and pass such as it thinks fit :
Any agreement under sub-section (2) of section 13 or an order made under section 15 shall, in supersession of all previous decision of a civil court in respect of the debts mentioned in it, be binding on the parties.
A memorandum of appeal shall be accompanied by a court-fee of rupees six.
In the hearing of the appeals made under this Act, the Appellate to be appointed by the Government shall follow the procedure provided in 1[the Code of Civil Procedure, 1908 (5 of 1908)], for the hearing of appeals from original decrees so far as may be applicable.
Every application made under section 4, shall be accompanied by a court-fee of rupees three.
Any settlement of debt due from a debtor to any creditor arrived at after the establishment of a Board under section 3 for the local area in which he resides or holds land, shall be void and shall not be recognised by any Board or civil court either as an acknowledgement or otherwise unless it is certified by the Board under section 13.
(1) Where more than one application has been made to the same or different Boards by or in respect of the same debtor or creditor or one or more of the joint debtors, or joint creditors, the Appellate Authority to be appointed by the Government shall, after holding such enquiry as he thinks fit, direct that all such applications shall be dealt with by any one of such Boards as may be specified in this direction.
(1) Notwithstanding anything contained in this Act, the Appellate Authority to be appointed by the Government may, on the application of any of the parties and after notice to the parties and after hearing such of them as desire to be heard, or of his own motion, transfer any petition or other proceeding pending before any Board to any other Board competent to try or dispose of the same.
If any party to the proceedings before the Board dies, the proceeding shall, unless the Board otherwise directs, be continued after legal representatives of such deceased party are, as soon as may be, brought on the record.
(1) The Board may, on the application of the debtor or any creditor, summon before it, in the manner prescribed, any other person known or suspected to have in his possession any property belonging to the debtor or supposed to be indebted to the debtor; or any other person whom the Board may deem capable of giving information in respect of the debtor, his dealings or property and the Board may require any such person to produce any documents in his custody or power relating to the debtor, his dealings or property.
(1) Any suit or other proceeding for the recovery by a creditor of any debt against a person who is a debtor pending in any civil or revenue court shall be transferred by such court to the Board to which an application under section 4 lies.
Save as expressly provided in this Act, 1[the provisions of the Limitation Act, 1963 (36 of 1963)], shall apply to all claims in respect of debts in the proceedings under this Act as if such proceeding, were proceedings in a suit in civil court.
In any proceedings under this Act, any person may be represented by an agent authorised in writing or, with the permission of the Board, by a legal practitioner.
The Chairman and other members of the Board shall be deemed to be public servants within the meaning of 1[section 21 of the Indian Penal Code, 45 of 1860)].
Notwithstanding anything contained in this Act, an application or proceeding before any Board which has been dissolved under the provisions of this Act, and in place of which no other Board has been established, shall be transferred by the Government to such civil court having jurisdiction in that area as the Government may, by general or special order, specify, and shall be heard and disposed of by the court in accordance with the provisions of this Act as if for the expression ‘Board’, wherever occurring in this Act, the expression “court” were substituted. Such court shall, for the purpose of this Act be deemed to be successor-in-office of the Board so dissolved.
134. Omitted.
If any person in a proceeding under the Act––
(1) The Government may, from time to time make any rules consistent with the provisions of this Act to carry out the purpose thereof.
(1) The Jammu and Kashmir Distressed Debtors Relief Act, Samvat 2006 is hereby repealed.