The Tamil Nadu Indebted Agriculturists(Temporaryrelief) Act, 1954 Complete Act - Bare Act

(THE 1 Substituted by the Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969 [TAMIL NADU] INDEBTED AGRICULTURISTS

(TEMPORARYRELIEF) ACT, 1954)

T.N. Act 5/1954

CONTENTS

1. Short title extent and commencement

2. Definitions

3. Bar of suits and applications

4. Stay of proceedings

5. Exclusion of time for limitation.

6. Effect of transfer of immovable property by the debtor.

7. Power to make rules

8. Repeal of Madras Ordinance V of 1953

An Act to provide temporary relief to indebted agriculturists.

WHEREAS, after successive years of drought, by the bounty of Nature there has been adequate rainfall this year and agriculturists are applying themselves with assiduity to the cultivation of crops.

AND WHEREAS agriculturists have borrowed or added to their debts during the years of drought and may, if freed for a time from the pressure of creditors, be enables to rehabilitate themselves;

AND WHEREAS it is in the interests of the general public that, at the present time, agriculturists be spared the distractions and expenditure involved in litigation launched by their creditors, in order that the maximum possible advantage may result to the State in the matter of production of food crops; It is hereby enacted as follows:

NOTES

Preamble: The Act was intended to meet a situation peculiar to the agriculturists in this state. It was not intended to extend the benefit persons owning lands outside this state. There is nothings in this Act to indicate to which class of agriculturists, the Act were to apply. Hence it is necessary to refer to the preamble of the Act, so that we can find out the scope of the Act. The preamble refers to the class of agriculturists who are entitled to the benefits of the Act. " (1961) 2 M.L.J. 587: ILR 1958 Ker. 1018 (1958) 2 M.L.J. 401;

1. SHORT TITLE EXTENT AND COMMENCEMENT " (1) This Act may be called the 1 Substituted by the Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969 [Tamil Nadu] Indebted Agriculturists (Temporary Relief) Act, 1954,

(2) It extends to the whole of the 1 Substituted by the Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969 [State of Tamil Nadu].

(3) It shall come into force at once. 1 Published in the Fort. St. George Gazette on 6.2.1954.

2. DEFINITIONS " In this Act, unless the context otherwise requires.

(a) ˜agriculturist' means a person who owns an interest in land, and who, by reason of such interest, is in possession of such land or is in receipt of the rents or profits thereof and shall include a lessee; but shall not include

(i) a firm registered under the Indian Partnership Act, 1932 (Central Act IX of 1932) or a company as defined in the Indian Companies Act, 1913 2 Now See Indian Companies Act 1956 Central Act 1/1956. (Central Act VII of 1913), or a corporation formed in pursuance of an Act of Parliament of the United Kingdom or of any special Indian law; or

NOTES

S.2 (a) (i) and Explanation " Hindu joint family " When ceased to be an agriculturist " (1962) 2 M.L.J. 399

(ii) any person who was assessed to income-tax under the 3 income Tax Act, 1961. Central Act XLIII of 1961. Indian Income-tax Act (Central Act XI of 1922) in any of the years 1951-52, 1952-53, 1953-54.

Explanation: -- Where a Joint Hindu family or a tarward, tavazhi, kutumba or kavaru is an agriculturist, every coparcener or member of the tarward, tavazhi, kutumba or kavaru, as the case may be, shall be deemed to be an agriculturist provided that he has been assessed to income-tax in any of the years 1951-52, 1952-53, 1953-54.

(b) ˜debt' means any sum of money which a person is liable to pay under a contract (express or implied) for consideration received and includes rent in cash or kind which is person is liable to pay or deliver in respect of the lawful use and occupation of land.

Explanation: -- It is immaterial that the sum or produce is recoverable only by sale of property in enforcement of a mortgage or charge or that the contract was entered into by the person's predecessor-in-title or by the manager of the joint Hindu Family or the karnavan of the tarward or tavazhi or the yajaman of the Kutumba or kavaru of which such person was or is a member.

EXCEPTION. " ˜DEBT' does not include "

(i) rent or compensation for the use and occupation of house property;

(ii) rent or compensation for the use and occupation of immovable property not being house property, accrued due after the 31^st March 1953:

(iii) any liability arising out of a breach of trust:

(iv) any liability in respect of maintenance:

(v) any sum payable to the State or the Central Government or to any local authority, whether by way of revenue, tax, cess or loan otherwise:

(vi) any sum payable to any co-operative society, including a land mortgage bank, registered or deemed to be registered under the 1 See now the Tamil Nadu Co-operative Societies Act 1983) Tamil Nadu Act 30 of 1983) Madras Co-operative Societies Act, 1932 (Madras Act VI of 1932), provided that the right of the society to recover the sum, did not arise by reason of an assignment made subsequent to the 1^st October 1953;

(vii) wages or remuneration due as salary or otherwise for services rendered:

(c) ˜land' means land used for agriculture or horticulture, not being land appurtenant to a residential building.

(d) ˜Ordinance' means the Madras Indebted Agriculturists (Temporary Relief) Ordinance, 1953 (Madras Ordinance V of 1953);

(e) ˜pay' with its grammatical variations, includes deriver;

(f) ˜suit' or ˜application' does not include an appeal from a decree or order passed in a suit or application or an application for revision or review.

NOTES

S.2: S.2(b) and 3 Explanation (iii) "Debt" " Meaning of " Suit for recovery of rent or damages for use and occupation is outside the scope of Explanation iii to S.3. The proviso to this explanation applies not only suits for possession of land also houses, So such decree even if costs thereon is incurred, such a decree cannot be treated as one for recovery of debt. " (1954) 2 M.L.J. 605.

S.2(b) and c: Two conditions for attracting the benefits of the Act " 1. The applicant must be an agriculturist within the meaning of the Act and 2. The debt in respect of which the applicant claims the benefit under the Act must be a debt as defined in the Act. To find out the scope of the terms "agriculturists" and "Debt" reference must be made to the title and preamble of the Act meaning of "Agriculture" and "Debt" Meaning of AIR 1955 NUC (Mad) 1965.

S.2(b) : "for consideration received." " meaning of AIR 1955 NUC (Mad) 898.

S.2(b) " "debt" " meaning of " AIR 1955 NUC (Mad) 667

S.2(b) " Money decree passed on 15.3.1941 against agriculturist " Execution pending when this Act came into force " Debt converted into installment decree " Effect of the applicability of the Act " AIR 1963 Mad. 397.

S.2(b) " owelty is not a debt " AIR 1958 Mad. 217.

S.2(b) " Arrears of rent " Whether debt " (1959) 2 M.L.J. 108

S.2(b) & 3: Decree should be for recovery of debt AIR 1955 NOC Mad. 3184.

Ss.2 & 4: Decree for rent for a vacant site " will not get protection under the " Act " " Agriculture" " meaning of (1955) NUC Mad) 1565)

3. BAR OF SUITS AND APPLICATIONS " No suit for the recovery of a debt shall be instituted, no application for the execution of a decree for payment of money passed in a suit for the recovery of a debt shall be made, and no suit or application for the eviction of a tenant on the ground of non-payment of a debt shall be instituted or made, against any agriculturists in any civil or revenue court 1 Substituted for the words "before the expiry of a year from the date of commencement of this Act", by section 2(i) of the Tamil Nadu XXXVII of 1954) [before the 1^st March 1955.]

Explanation

I.

" "Suit" does not include a claim to a set off made in a suit instituted by an agriculturist.

Explanation II. " Where a debt is payable by an agriculturist jointly or jointly and severally with a non-agriculturist no suit or application of the nature mentioned in this Section shall be instituted or made either against the non agriculturist or against the agriculturist 2 Substituted for the words "before the expiry of the period" by Section 2 (ii) . ibid. [before the date] mentioned in this section.

Explanation III. " A suit shall be deemed to be a suit for the recovery of a debt notwithstanding that other reliefs are prayed for in such suit, and a decree shall be deemed to be a decree for payment of money passed in such suit notwithstanding that other reliefs are granted by such decree:

Provided that a suit for possession of land shall not be deemed to be a suit for recovery of a debt by reason merely of mesne profits being also prayed for in such suit.

NOTES

S.3 Suit filed in contravention of S.3 must be dismissed. There cannot be a mere stay. AIR 1961 Ker. 138 (FB)

S.3: Suit filed in contravention of S.3 " Competency " AIR 1957 Mad. 780:

S.3 Bar of application for execution; of a decree for repayment of money " Application for reteable distribution " Whether barred " (1956) 2 M.L.J.

S.3 : Explanation III " "such" a "suit" " meaning of " (1954) 2 M.L.J. 605

S.3 Explanation III " Decree including decree for costs " Decree is not covered by Act. " (1954) 2 M.L.J. 605

S.3: Explanation III " Compromise decree and other decree " No such distinction is contemplated under the Act (1954) 2 M.L.J. 605

S.3 Sale under S.69 of T.P. Act whether Act applies " AIR 1955 Mad 135.

S.3: The application by the decree holder purchaser under O.21, Rule 95 CPC for delivery of possession is not an application for the execution of decree with in the meaning of this section " AIR 1955 NUC (Mad) 3850

Ss.3 and 4 " It is the character of the suit that determines the applicability of sections, Decree should be for money. Does not apply to administrative suits " AIR 1955 NUC (Mad) 3192

S.3 and 2(b): Suit for declaring partnership void of initio. Decree an condition to restore amounts advanced by defendants " decree is not for recovery of debt " S.3 does not apply " AIR 1955 NUC (Mad) 3184.

Ss.3 & 4: Survey for a judgment debtor. Section 3 and 4 have to be read together to find out the nature and scope of protection that is available under the Act. It contemplates a relief claimed against an agriculturist who may not be a party to the suit, "of the nature mentioned in section 3" " meaning of " AIR 195 NUC (Mad) 2442.

S.3 Stay of execution " Waiver of his rights " Scope of " AIR 1955 NUC (Mad) 898.

Ss.3 and 2(b) " "for consideration received" " meaning of " AIR 1955 NUC (Mad) 898.

S.3 " Suit for recovery of possession with a prayer for mesne profits " Whether it is a suit for recovery of debt " (1960) 2 M.L.J. 596.

S.3 " Explanation change decree for arrears of rent " Whether Debt ILR (1958) Ker. 1018

S.3: Exclusion of period " Benefit when available " (1962) 2 M.L.J. 352; AIR 1959 Mad 278;

S.3 " Scope of " (1957) 2 M.L.J. 267;

S.3: Explanation (iii) ""Such a suit" meaning of (1954) 2 M.L.J. 605:

4. STAY OF PROCEEDINGS " (1) All further proceedings in suits and applications of the nature mentioned in Section 3 in which relief is claimed against an agriculturist, not being proceedings for the amendment of pleadings or for the addition, substitution, or the striking off of parties, but otherwise inclusive of proceedings consequent on orders or decrees made in appeals, revision petitions, or applications for review, shall, subject to the next succeeding sub-section, stand stayed 1 Substituted for the words "before the expiry of a year from the date of commencement of this Act, "by Section 2(i) of the Tamil Nadu XXXVII of 1954. [until the 1^st March 1955].

Provided that, in regard to property under attachment, the Court may pass such orders as it deems necessary for the custody or preservation of the property or for the sale of such property if it is subject to speedy or natural decay, or, if in respect of it, the expenses of custody or preservation are considered excessive.

(2) On application made by the defendant or the respondent or by all the defendants or all the respondents, as the case may be, the stay effected by sub-section (1) in a suit or application shall be dissolved and the suit or application shall be proceeded with from the stage which had been reached when further proceedings in the suit or the application were stayed 1. Substituted for the words "before the expiry of a year from the date of commencement of this Act, "by Section 2(i) of the Tamil Nadu Act XXXVII of 1954. [until the 1^st March 1955.]:

(3) In the case of suit or applications of the nature mentioned in Section 3, instituted or made against an agriculturist, the provisions of the 2 Now see Indian Income Tax Act 1961 (Central Act 43 of 1961). [Tamil Nadu] Tenants and Ryots Protection Act, 1949 2 Now see Indian Income Tax Act 1961 (Central Act 43 of 1961). [Tamil Nadu] Act XXIV of 1949), or Section 545 or Section 55 of the Malabar Tenancy (Amendment) Act, 1951 2 Now see Indian Income Tax Act 1961 (Central Act 43 of 1961). [Tamil Nadu] Act XXXVII of 1951) shall not have effect in so far as the said provisions are in consistent with the provisions of sub-section (1).

NOTES

S.4 " "Further proceedings in suit" " application for passing final decree includes " (1961) 1 M.L.J. 203.

S.4 Application for final decree " Limitation for " 1962 Ker. L.J. 165 " Validity of sale after the Act " 1955 Ker. L.J. 763.

Ss.4 & 3 " Non compliance with S.3 " Effect of " AIR 1957 Ker. 41: AIR 1961 Ker. 138.

S.4(1): Applies to proceedings pending on the date, when the Act came into force, only to those cases S.4(1) applies " 1957 (2) M.L.J. 267.

S.4 and S.3 to be read together S.4 includes application mentioned in S.3 AIR 1955 NUC (Mad) 2442.

S.4 Computation of period of limitation " 1966 Ker. LJ. 541:

5. EXCLUSION OF TIME FOR LIMITATION. " (1) In computing the period of limitation or limit of time prescribed for a suit for the recovery of a debt or an application for the execution of a decree passed in such suit, the time during which the institution of the suit or the making of the application was barred by section 3 of the Ordinance or section 3 of this Act, or during which the plaintiff or his predecessor-in-title, believing in good faith that section 3 of the Ordinance or section 3 of this Act applied to such suit or such application, refrained from instituting the suit or making the application, shall be excluded.

Explanation " ˜good faith" shall have the meaning assigned to it in section 3 (22) of the General Clauses Act, 1897 (Central Act X of 1897)

(2) Where in a suit or an application in which the question of the exclusion of time under sub-section (1) arises, the defendant or the respondent, or one of the defendants or respondents, with respect to whom the question is raised, would have been an agriculturists but for the fact that in the year ending 1951-52, 1952-53, or 1953-54 he had been assessed to income-tax (Central Act XI of 1922) 1 Substituted by Sec. (4) of the Tamil Nadu Amendment Act XXXVII of 1954 of the words before the expiry of a year from the commencement of this Act. , it shall be conclusively presumed that, in refraining from instituting the suit or making the application, the credit believed in good faith that such defendant or respondent was an agriculturist.

NOTES

S.5 " Scope of " Limitation " 1962 Ker. LJ 165;

S.5: Limitation " When saved (1962) 2 M.L.J. 352; 77 L.W. 727; AIR 1959 Mad. 278;

6. EFFECT OF TRANSFER OF IMMOVABLE PROPERTY BY THE DEBTOR. Every transfer of immovable property by a debtor entitled to the benefit of section 3 or section 4 made after the commencement of the Ordinance and 1 Substituted by Sec. (4) of the Tamil Nadu Amendment Act XXXVII of 1954 for the words before the expiry of a year from the commencement of this Act. [before the 1^st March 1955] shall, in any suit or other preceding, with respect to such transfer be presumed, until the contrary is proved, to have been made with intent to defeat or delay the creditors of the transferor.

NOTES

S.6 Scope of "- AIR 1963 Mad. 450;

7. POWER TO MAKE RULES. The State Government may make rules to carry out the purposes of this Act.