The Tamil Nadu Indebted Persons (Temporary Relief) Act, 1975

The Tamil Nadu Indebted Persons (Temporary Relief) Act, 1975 Act 48 of 1975 Keyword(s): Debt, Indebted Person, Interest, Pay, Rent, Suit DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. f 9% : T.N. Act 489 Indebted Persons (Temporary 513 Relief) TAMIL NADU ACT NO. 48 OF 1975." THE TAMIL NADU INDEBTED PERSONS (TEMPORARY RELIEF) ACT, 1975. (Received the assent of the President on the 29th November 1975, $rst published in the Tamil Nadu Government Gazette Extraordinary on the 3rd December 1975 (Karthigai 17, Iratchasa (2006-Tiru~aluvarA ndu)).] An Act to provide temporary relief to certain indebted persons in the State of Tamil Nadu. BE it enacted by the Legislature of the State of Tamil Nadu in the Twenty-sixth yc;r of the Republic of India as follows :- 1. (1) This Act may be called the Tamil Nadu Indebted short title, Persons (Temporary Relief) Act, 1975. cxtent and commence- (2) It extends to the whole of the State of Tamil ment. Nadu. (3) It shall be deemed to have come into force on the 22nd July 1975 and shall remain in force to and L L ~ inclusive of the 15th January 1976. 2. In this Act, unless the context otherwise requires,- Definition. (1) Debt" means any liability in cash or kind, " whether secured or unsecured, due from an indebted person whether payable under a decree or order of a civil or revenue court or otherwise, but does not include- (i) rent as defined in clause (6); (ii) any debt to which the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1975 (Tamil Nadu Act 10 of 1975), is applicable; (2) "indebted person" means any person from whom any debt is due : ------ - * For Statement cf Objects cnd Reasons, see Tamil Nadu Government Gazette Extraorr:inary, dated the 20th October 1975, part IV-Section I, Pages 201-202. 1 SM - Indebted persons [1M5 : T.N. Act d) (Temporary Relief) Provided that a person shall not be deemed to be an indebted person, if he- (i) has in both the financial years ending on the 31st March 1974 and the 31st March 1975, been assessed to income-tax under the Income-tax Act, 1961 (Central Act 43 of 1961) or under the income-tax law in force in any foreign country; or (ii) has in both the' fhancial-Yearse nding on the 31st March 1974 and the 31st March 1975 been assessed to sales tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956); or (iii) has in all the foui half-years immediately preceding the 1st Arril 1975 been assessed to property or house lax in respict of bv.ildings or lands other than agricularal lands, under the Tamil Nadu District Munici- palitie, Act, 1920 (Tamil Nadu Act V of 1920), the Madras City Municipal Corporation Act, 1919 (Tamil Nadu Act V of 1919), the Madurai City M~nicipal Corporation Act, 1971 (Tamil Nadu Act 15 of 1971), thc Tamil Nadu Panchayats Act, 1958 (Tamil Nadu Act XXXV of 1958), the Contonments Act, 1924 (Central Act I1 of 1924) or any law governing muncipal or local bodies in this State or in any other State or Union territory in India, provided that the aggregate annual rental value of such buildings and lands whether let out or in the occupation of the owner, is not less than two thousand and four hundred rupees. a Explanation.-The annual r tal value of any build- ing or land for the purposes of proviso (iii) shall- (1) where the assessment is based on'the annual rental value, be deemed to be such value; (2) where the assessment is based on the capital - value, be deemed to be five per cent of the capital . value and (3) in any other case, be deemed to be the value; ascertained in the prescribed manner : 1 Provided further that a person shall not be deemed to be an indebted person if he is an agriculturist as defined in the Tamil Nadu Agricillturist Relief Act, 1938 (Tamil Nadu Act IV of 1938) and entitled to the benefits cf that Act ; (3) "interest" means any amount or other thing paid or payable in excess of the ~rincipals um borrowed or pecuniary obligation incurred or where anything has been borrowed in kind in excess of what has been so borrowed by whatsoever name such amount or thing may be called, alid whether the same is tlaid or payable entirely in cash or entirely in kind or partly in cash and p~tly in kind and whether the same is expressly mentioned or not in the document or contract, if any; (4) "pay" with its grammatical variations, includes deliver ; (5) "pcrson" means an individual and incluc'es an undivided Hindu family, a marumakkattbyam or aliya- santana tarward or tavazhi, bvt does ncit iilclude a body corporate, a charitable cr religious institutioll or an unincorporated company or associaticn or any firm zs defined in the Indian Partnership Act, 1932 (Central Act IX of 1932); (6) "rent" means the rent payayble by any tenant to the owner of any building in respect cf sucn building or portion thereof occupied by such tenant. Explanation.-For the purpos; of this claixse, the expression 'building' shall have the same meaning as in clause (2) of section 2 of the Tamil ~ a d uB uildings (Lease and Rent Control) Act, 1960 (Tamil ~ a d Auc t 18 of 1960); (7) "suit" or "application" does not include an appeal from a decree or crder passed in a suit or appli- cation or an application fcr revisicn or review. 3. Nothing in this 'Act shall affect d.ebts and liabilities Certain debts of any indebted person falling under the following heads:- and liabilities no-t- t - o - h - e (a) my revenue, tax or cess payable to the State affected. Government cr ar~yo ther sum due to them by way of loan or otherwise; (b) ally revenue, tax or cess payable to the Central aovernment or any other sum due to them, by way of loan c;r otherwise; 125-10-33~ ' 46 516 Indebted Persons (~ern~ora1r19~75 : T.N. Act Relief) (c) any tax 01 cess payable to any local authority or any other sum due to it, by way of loan or otherwise; (dj any liability in respec~c f any sum due LO any co-operative society i~lcludinga laud de~elopmentb ank reg~sleredo r deemed to be r:gistered under the Tamil ~attlC;c ; .sperative Societies Act, 1961 (Tamil ~ a d u Act 53 if 1961): Provided ha. where the liability mentioned in this clause arises by reasons of an assigrment to any such co-operative society either iuc11 assignxnt has taktr place before the 15th Mdrch I975 or is aiq assignment to eny such GO-opsratives ociety of l~engr anted by another such co-operative society; I (e) ally liability arising out of breach of trust ; (j) any liability in respect of maintenance whether under a decree of Court or otherwise; (g) any liability ill respect of wages or remuneration due as salary or otherwise for services rendered ; (h) any liability in respect of any sum due to- (A) any Public Company as defined in the Con- panies Act, 1955 (Central Act 1 cf 1956) ; (B) ally bankinq company to which the Ranking K2gulaticn Act, 1949 (Central Act X of 1949) applies ; (C>t he State Bank cf India constituted under the SfateJBano~f India Act, 1955 (Central Act ~ ~ 1of1 1 1955); (D) any subsidiary bank as defined in cluase (k) of sectioi~2 of the State Bank of India (Subsidizly Banks) Act, 1959 (Central Act 38 of 1959); I (E) any corresponding uew bbnk as defined In clause (d) of sectior. 2 of the Banking Companies (Acqui- sition and Transfer of Undertakings) Act, 1970 (Central Act 5 uf 1970); 1 (F)a ny company or corporati: n owned or con- trolled by the Central C)cvt.rnment or any State Gcvernr ment ; I 1975 : T. N. Act 481 Indebted PersoNs 514 Temporary( Relief) (G)t he Committee for the Administration of the amalgamated Tamil Nadu Shares of the Post War Ser- vices Reconstruction Fund and Special Fund for Re- construction and Rehabilitation of Ex-servicemen ; (H) any other financial institution notified by the State Government in the Tamil Nad~lG overnment Gazette. 4. No suit for the recovery of a debt shall be insti- Bar of suits tuted and no application for the execution of a decree and application. for payment of money passed in a suit for the recovery of a debt shall be made, against any indebted person in any civil or revenue court on and from the commence- ment of this Act and before the 16th January 1976. Explanation I.-" Suit " does nQt include a claim to a set-off made in a suit instituted by an indebted person. Explanation 11.-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 arp granted by such decree : Provided that a suit for possession of land shall not be deemed to be a suit for recoveryof a debt by reason merely of mesne profits being also prayed for in such suit. 5. (1) All further proceedings in suits and applications Stay of of the nature mentioned in section 4 in which relief is ~rocedings. claimed agzinst on indebted person, not being procecdings for the amendment of pleadings or for the addition,substi- tution, or the striking off parties, but otherwise inclusive of proceedings consquent on orders or decrees made in appeals, revision petitions or applications for review, shall, subject to :he next succeeding sub-section, stand stayed until the 16th January 1976 : Provided that in regard to property under attach- ment the court may pass such orders as it deems neces- sary 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) I I 51 8 Indebted persons [I975 :T . N. ct 48 (Temporary Reltef) I I 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 proceeding in the suit or the application were stayed. 6. In computing the period of 'limitation or limit Exclusion Of of time prescribed for a suit for the recovery of a debt or time for limitation,, an application for the execution of a decree passed in such suit, the time during which the institution of the suit suit or the making of the application was barred by section 4, or during which the plaintiff or his predecessor- in-title, believing in good faith that section 4 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). 1 7. Every transfer of immovable property by an in- Effect of debted person entitled to the benefit of section 4 or section transfir 5, made after the date of the commencement of this Act immavabl? and before the 16th January 1976, shall, in any suit or by an other proceeding, with respect to such transfer, be pre- person. sumed until the contrary is proved, to have been made with intent to defeat or delay the creditors of the transferor. 8. No interest shall accrue during the period of opera- Interest n3t tion of this Act in repsect of a debt due from an indebted accrue in person on the 22nd July 1975 but interest shall accrue respect of in respect of any debt ontained by an indebted person certaindebts. after the said date. 9. The provisions of this Act shall have effect notwith- ~ ctat ov erride standing anything inconsistent therewith contained in other laws the Code of Civil Procedure 1908 (Central Act V of 1908) contracts, etc. Or in any other law for the time being in force, or any custom, usage or contract, or decree or order of court or other authority. I 10. (1) The State Government may make rules to Power to carry out the purposes of this Act. make rules, (2) All rules made under this Act shall be published in the Tam11 Nadu Government Gazette, 2nd unless they are expressed to come into force on a particular day shall come into force on the day on which they are so publi- shed. I 1975 : T.N. Aef 481 Indebted Persons 519 (Temporary Relief') (3) Every rule made under this Act shall, as soon as possible, after it is made, be placed on the table of both Houses of the Legislature and if, before the expiry of the session in which it is so placed or the next session, both Houses agree in making any modification in any such rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 11. [The amendment made by thzs section has already been incorporated in the principal Act, namely, the Tamil Nadu Pawnbrokers Act, 1943 (Tamil Nadu Act XXlll oj 1943).] 12. [The amendment made by this section has already been incorporated in the principal Act, namely, the Tamil Nadu lndebted Agriculiurists (Temporary Reliej) Act, 1975 (Tamil Nadu Act 10 oj 1975).} 13. The Tamil Nadu Indebted Persons (Temporary Relief) Ordinance, 1975 (Tamil Nadu Ordinance 8 of 1975), and the Tamil Nadu Indebted Persons (Temporary Relief) Amendment Ordinance, 1975 (Tamil Nacu Ordi- nance 9 of 1975), are hereby repealed.