Kerala act 027 of 1961 : The Kerala Agriculturists' Loans Act, 1961 (No.27 of 1961)

'47 THE XENIA AGRICIJLTURXSTS'

LOANS

ACT,

I961

(Act ^27of

1961)

CONTENTS

Preamble Sections

PART ^I

PRELIMINARY

PFP'P'U'?5'

10.

ll.

12.

13.

Short

title,

extent^andcommencement. Definitions.

PART ^1]

LAND Iuyxovnmam' LOANS Purposes ^for

which

loans may^be

granted

under ^this

Part. Mode

of

dealing

with

application

for

loans. Period of

repayment

of loans. Subsequent

encumbrances^void

again."

Government. Recovery ^ofloans Order

granting

loan

conclusive

on certain

points. Power ^to

make rules.

PART III

LOANS FOR THE

RELIEF or

DISTRESS,

PURCHASE or

SEED,

CATTLE, ^ETC.

Power to^make

rules. Recovery ^of

loans.

PART IV

:

'

MISCELLANEOUS

Liability ^of

joint

borrowers ^as

among themselves. Repeal.

ACT 27

OF 1961

THE

KERALA AGRICULTURISTS'

LOANS

ACT,

1961! An Ad in consolidalz and

amend Ih' law:

relating ^to

luau:

Qf mane) b the Cowmmentfor ^landand

agricultural mpmvemenb ^{in [he}

Stat:

43f

2min. P7!amblt.—WHERBAS ^itis

expedient ^to

consolidate ^and

amend the laws

relating ^toloans ^ofmoney

by

the Gavermnent ^for

land and

agri- cultural

improvements ⁱⁿthe State ^of

Kerala; o

34

Published in the Gazette

Extraordinary

dated 15th

July,

1961.

#1095

1

498

Be it

enacted

in

the Twelfth

Year

of

the

Republic

of

India

a follows:—

PART I

PRELIMINARY

1. Short

title,

extent

and

eamnunumenl.—(l)

This Act may be

called the Kerala

Agriculturists'

Loans

Act,

196l.

(2) ^it

extends^tothe

whole^ofthe

State

ofKerala.

(3) ^It

shall^comeinto

force ^atonce.

2.

Definuinm.—ln

this

Act,

unless the context otherwise

requires.— (a)

"Collector" means^the

Collector ^ofthedistrict^Or

any ofi-'iccr empowered ^{by the}Government^to

discharge ^thefunctions ^ofa

Collector under ^this

Act,

(b) "improvement"

means

any^workwhich^{addsto the}

value^or the

land, ^and

includes the

following,

namelyz~

(i) ^theconstruction ^of

wells, tanks,

sluice ^bundandother works for the

storage,

supply

or disrribution of water for the purposes of

agriculture

or for

the use of

men and cattle

employed

in

agriculture;

(u) ^thepreparation ^oflandfor

irrigation;

(iii) ^the

diainage,

reclamation

fi-om rivers^orother waters, ^or protection ^fromfloods^orfromerosiOn ^orother

damage by

water,^{ol'landused for}

agricultural purposes ^{or land} which ^is

cultivable;

(iv) ^the

construction^ofpermanent bunds around

Punja ^or Kayal

fields ^usedfor

agricultural purposes;

(v) ^the

reclamation, clearance,

enclosure^ofpermanent improvement ^{of land for}

agricultural purposes;

(vi) ^theconstruction^of

walls,

boundary

walls

(Kayyalas),

store houses, ^farm

houses^andcattle

sheds;

(vii) ^therenewal^orreconslt'uclion^ofanyofthe

{orerohg

works, or alterations

therein or additions

thereto;

(viii) ^the

planting ^or

rearing^ofsuchkinds

ofplants ^andcrops ^as may be

notified in

the Gazette

by

the

Government;

and

(ix) ^suchother works^asthe

Government may,^fromtimeto

time, by

notification^inthe

Gazette,

declare ^{to be}

improvementl for the

purposes ^ofthis

Act; (c)

"prescribed '

means

prrscribed by

rulta

made

under

this Act.

PART II

LAND IMPROVEMENT Loans

3.

Purpar: for

whirl: loan: may be

granted

under (Iii:

Pam—Subject

to such

rules^as

may be made under section

9,

loans may be

granted

under this ^Part

by

the Government or

such

officer or

authority

as

may, from the :to

time.

be

empowered

in this

behalf

by

the

Cavernmcnt. by notfi

:ition

in the

Gazette,

for the purpose of

making any improvement, to

any person

having

a

right

to

make the

improvement

or, with the consent of that person,

to

any other person.

,

A\-

499

4. Made

of dazlmg

wzth

applwatianfor

loan:

—(l)

When ^an

application for a loan is made

under this

Part.

the

authority

to whom the

appli- cation is made may ifit

is

in the

opinion

of

the

authority expedient that

public

notice be given of the

application, publish

a notice in

.ueh manner

asmay be

prescribed, calling upon all persons

objecting

to the loan ^to

appear before the

authority ^ata

time and

place

fixed

therein and submit their

objections.

(2) ^The

authority

shall

consider every objection

submitted

under sub-section

(1), ^{andmake an}

orderⁱⁿ

writing

either

admitting

or over-ruling ^it.

5.

Pen'ad

13f

7421;]an

of

loam.—(

l)

Every

loan

granted

under^this Part shall be^made

repayable ⁱⁿ

such manner^andat such time as

the Government may prescribe ^or

by

instalments.

in the form of an

annuity or

otherwise,

within such

period

from the date of

the

actual

advance of the

loan,

or, when the loan ^is

advanced in

instalments,

from the date of ^theadvance^ofthelast

instalment

actually

paid,

as

may, from time to

time,

be

fixed

by

rules made under

this

Part.

(2) ^The

period

fixed^as

aforesaid shall^not

ordinarily

exceed

twenty years.

6.

Subsequent

encumbrance: void

agmnst Gnvnnmmt.—All encumbrances created ^onthe

land offered^as

securtty ^for

the

loan,

after the date

of

the order

granting

the

loan,

shall

be void as

against

all claims

enforceable by ^theGovernment ⁱⁿ

respect ^ofsuchloan.

7.

Recovery of

loan:

—(l)

Subject

to

rueh rules as

may be made

under section

9.

all loans

granted

under this

Part,

all interest

chargeable

there- on, and costs, if any, incurred^tn

making

and

rerovering

the same,

shall, when

they

become

due,

be recoverable

by

the Collector in

all or

any of the

following modes,

namely ^:— ( a) ^fromthe

borrower—as^if

they ^werearrears^oflandrevenue due

by

him;

(b) ^fromhissurety,^ifany—as^{if they were}

arrears^{of landre-} venue due

by

him;

(c) ^{out ofthe land forthe}

benefit ^ofwhich^{theloan hasbeen} granted—as ^if

they ^were

arrears^oflandrevenue^{due in}

respect^oftha land;

(d) ^outofthe

property comprised ^{in the}collateral

security, ^if any—according ^tothe

procedure ^{for the}realisation ^oflandrevenue

by the sale of immovable

property

other ^than

the land ^on

which that revenue is

due.

(2) ^Allsales ofland under clause

(c)

ofsuh-section

(I)

shall^{be free} of ^allencumbrances created^ontheland

subsequent ^to

the date^ofthe order

granting ^theIan. (31 ^{'v\ henany sum due on}account^ofanysuch

loan,

interest ^or costs is

paid

to the

Collector

by ^a

surety ^oranowner of

property ^com~ prised ⁱⁿ

any collateral security, ^oris

recovered under sub-section

(l) by ^the

Collector^froma

surety ^{orout ofanysuch}

property, ^theCollector shall, ^onthe

application

ol'the

surety ^orthe

owner ^{of that}

property, ^as the case

may be,

recovrt- that ^sumonhis

behalf ^fromthe

borrower, ^or out of the land

for

the benefit

of which the loan has^new

granted,

in the manner

provrded by

sub-section

(1).

800

(4) ^It

shall^{be in the}

discretion ^ofthe

Collector

acting

under^this section ^to

determine

the orderⁱⁿwhidr^hewrll resort^to

the various modes of recovery permitted by ^it.

8. Order

granting

luau conclusive ^onmtain

pointy.—A

written order under ^the

hand of ^an

authority

empowered

to make loans under thre Parr

grantinga

loan

to, ^orWith

the consent of ^a

person mentioned therein, ^forthepurpose ^of

carrying ^{out a work}described

therein, ^{or the benefit of ^land

specified

therein,

shall,

for the

purposes

of this Act, ^beconclusive evrdence—

(a) ^thattheworkdescribed^{rs an}

improvement

Within^the meaning or ^this

Act;

(b) ^thattheperson mentioned^{hadatthedate of the}

order ^a right ^{tomake such an}

improvement,

(e) ^thatthe

improvement ^isone

benefiting ^theland

specified.

9. Pawnla make

"Alert—(l)

The Government may, from time to time,

by

notification

in

the

Gazette,

make rules {or

carrying ^outthe purposes ^{of this}Part.

(2) ^In

particular, ^andwithout

prejudice ^tothe

generality ^ofthe foregoing

power^such

rules^mayprovide ^{forallor anyof the}

following matters, namely ^:—

(a) ^the

manner^ofmaking applications ^for

loans,

(b) ^themanner^of

conducting inquiries relating ^to

applications for

loans, ^andthe powers ^tobe exercised

by

ofiicers

conducting

those inquiries; '

(c) ^thenature^ofthe

security ^tobetaken^forthedue

application and

repayment ^ofthemoney,^therateof

interest at

which,

and the con- ditions

underwhich,

loans may^be

granted ^{and the}manner

and time ^of granting

loans:

Provided ^thattherateof interest shall not

be less than three per cent ^normorethan five per ^cent

per

annum;

(d) ^the

inspection ^ofworks ^tor

which loans ^havebeen

granted;

(e) ^theinstalments

by which, ^andthemodein

which,

loans, ^the interest ^tobe

charged ^onthem and the

costs

incurred

in

the

making thereof,

shall ^be

paid ^;

(f) ^themanner^of

keeping ^and

auditing ^theaccounts^oftheex- peizldrture

of

loans

and of the

paymenu made

in

respect

of the same

; an

(g) ^allother matters

pertaining ^{to the}

working ^ofthis

part.

(3) ^Allrules ^madeunder^thissection shall ^belaidfor not

lets than fourteen

days

before^the

Legislative

Assembly

as

soon as

possible

after they ^are

made, ^andshall ^be

subject ^{to such}

modifications,

whether

by way of

repeal

or

amendment,

as

the

Legislative

Assembly may

make

501

PART III

LOANS ^FORTHE

RELIEF or

DISTRESS,

PURCHASE or

seen, CATTLE, ^era.

10.

Power ^to

make

rulers—(1)

The Government may, from time

to time,

by

notification ^Inthe

Gazette,

make rules ^astoloans^tobe made to owneis and occupiers of

aiablc land for the relief

of

distress,

purchase of

seed, cattle,

manure ^or

agricultural implements,

motors and pump sets or

any other purpose

not

speCified ⁱⁿ

Part II

of this

Act,

but con- nected ^with

agricultural objects

(2) ^Allrules^madeunder^thissection shall^{belaidfornot lessthan} fourteen

days

before the

Legislative

Assembly

as soon as

possible

after

they are

made,

and shall be

subject

to such modifications whether

by way of repeal ^or

amendment, ^asthe

Legislative Assembly may ^make

during ^the session ⁱⁿwhich

they

are so laid or the SeSSton

immediately following. ll.

Recovery «Jinn—Every

loan

granted

in accordance with the rules made under section

10,

all interest

chargeable thereon,

and costs ifany,

incurredⁱⁿ

making ^or

recovering ^thesame

shall, ^when

they become

due,

be recoverable from the person

Io whom

the loan was made, ^orfromany person^whohasbecome

surety ^{orthe

repayment thereof, ^as

iftl'iey ^werearrears^{of land}revenue^or

costs

incurred ⁱⁿ recovering ^thesamedue

by the'person ^{to whomtheloanwasmadeor} by ^his

surety.

PART IV

MISCELLANEOUS

12.

Liability of

joint

bummer:

a;

timing lliermlwaAthn a loan is made under Part II or Part [II to

the

members

of a

village Community ^orto

any

other

persons ^onsuchterms^{thatall ofthem} are

jointly

and

severally

bound

to the

Government for

the

payment

of the

whole amount

payable

in

respect thereof,

and ^a

statement

showing the

portion

of that amount which as

among themselves each

is

bound to contribute is entered upon the order

granting

the

loan

and

is

Signed by each ^ofthemand

by ^the

authority

making ^the

order, ^thatStatement shall be conclusive evidence of the

portion of

that amount

which as among themselves

each of

those persons ^isbound^to

contribute.

13.

RepeaI.—-(l) ^The

Land

Improvement

Loans

Act,

1883

(Central Act ^19of

1883)

and ^the

Agriculturists

Loans

Act, ¹⁸⁸⁴

(Central

Act

12

(£1884) ⁱⁿiheir

application ^tothe

Malabar

district referred to in sub-section

('2) ^ofsection⁵of^theStates

Reorgaiiisat'on

Act,

1956,

the Land

Improvement

and

Agricultural

Loans

Act, ¹⁰⁹⁴

(Travancorc Act IX of

1094)

and the Cochin

Agricultural Improvement

Loans

Act,

1093

(IV ^of

1093), ^are

hereby repealed.

(2) Notwnhstanding ^such

repeal,

advances^madebefore^the commencement of this Act and costs incurred

by

the

Governmentⁱⁿ respect ^{of such}

advances shall ^berecovered^{asifthe said Actshad} not been

repealed by

this

Act,