The Punjab Settlement of Agricultural Indebtedness Act, 2016

PUNJAB GOVT, GAZ. (EXTRA), MAY 4, 2016 45 (VYSK J4, 1938 SAKA) PART I GOVERNMENT OF PUNJAB DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIR S, PUNJAB NOTIFICATION The 4th May, 2016 No. 18-Leg./2016.-The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 25th d ay of April, 2016, is hereby published for general information:- THE PUNJAB SETTLEMENT OF AGRICULTURAL INDEBTEDNESS ACT, 2016. (Punjab Act No. 15 of 2016) AN ACT lo provide relief to agriculturists, agricultural labourers and other persons dependent upon agriculture, and to provide for fair and expeditious settlement of their debt related disputes and for the matters connected therewith or incidental thereto. Be it enacted by the Legislature of the State of Punjab in the Sixty- seventh Year of the Republic of India as follows :- 1. (1) This Act may be called the Pur yab Settlement of Agricultural Short title and Indebtedness Act, 2016. commencement. (2) It shall come into force on and with effect from the date of its publication in the Official Gazette. 2. In this Act, unless the context otherwise requires,- Osiinitions, (a) “agriculture” shall include horticulture and the use of the land for a l n i y v es p to u c r k p , o se p ou o l f t ry h , u sb p a ig n g d e r r y y , in f c i l s u h s e i r v y e or o f b t e h e e s k a e n e d p in t g he o c r u l b t r i e v e at d i i o n n g o o f f agro forestry and the like; (b) “agriculturist" means a person who owns or cultivates land and Whose means of livelihood is income from cultivation of such land Or partly by income from cultivation of such land and partly by income he gets as wages in cash or kind or partly in cash or partly in kind from other occupation he performs; (c) "agricultural labourer" means a person who follows any one or 4, 2016 MAY | (EXTRA), VT. GAZ. SAKA) T_ (VY SK 14, 19 s 3 t 8 i ons in the capacity ofa labourer op more of the followtl 1g aa e ‘n cash or in kind or partly in cash hire or exchange, whe and partly in kind:- itivation and tillage of soil, ete: ‘ ( i i i ) ini ) da f i a r r r o ry m y d i u n c f g ft a‘aarmi i rrto m i n i n , n c g l ud a c i n u n l d g t iv c f a ‘ u i t s i h | o e n r , i é es; g rowin . g an 1 harvesting| & of ot any (iti) pr 5 ro" horticultural commodity; | raising of livestock, fees or poultry; ;an (iv) any practice performed on a farm as incidental to or in (v) conjunction with farm operations (includ i. ng : any y fo - re stry t y 0 - lon,wi timbering operations) and preparati i o n for ‘m m a a r r ke k t e t a and delive ry ber | to storage or to market or to carriage for transportation of farm products; (da) "Bank" means,- () aScheduled Bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (Central Act No. 2 of 1934); and | (ti) a in n y t h o e th O e f r f i f c i i n a a l n ci G a a l z e i t n t s e t it a u s t io b n a n n k o ti f f o i r e d t he b y p t u h r e po St s a e t s e G o o f ve th r i n s me Ac n t t ; (e) "Civil Court" includes,- r " ( ( e i C ) ) g O i - s O t p e C a A e r o c c a r e u t c o a d , o r u t u t r i r s u t v t 1 n e 9 d A 2 e e e c 0 x x S r t e e o , r r c ( c c t i C h i i e 1 e e s s t 8 n i i y 8 t n n " P r g y 7 a £ I l M J ( n e u j p C r a a A e o b i c n n w s t t s e d r C r i a o s c 5 | a . t i o s o f u A o n c n c t d i 1 e e u 9 r 2 n 9 l 0 d y ) e o t ; r f h r e e g a t 1 h i n P 8 e s d 8 r t 7 o e P ) v r r . i e o n d v c i i n a o c r l i a d l S e m e a I m l n e l s d o l C v a t e o u n s c b e y e ( ( h g ) ) de " b c t r : ed itor" Means 4 Peperr son or ii ns t O i p tu e t r i a o t n i v t e o W S h oc o i m e ti a e s d e A b c t t o , r o 19 w 6 e 1 s ; the Othe a a e c d ebtor . ii n Cash or i. n kind secured or . wise, whethe due or Not Ak h Order of a civil court or om Shall not ing] ude, - Centr, al ? €sltaabb lishe b . rporatio O S r o ve Fo r r n meng or State Government; Government Of tInhg e Vern‘ men 4M or any other orggaanniizzaat ion dia “Nder the vole the State of Punjab or PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 47 (VYSK 14, 1938 SAKA) (iti) any debt incurred for the purposes of trade; (iv) any rent due in respect of any property let out toa debtor; (v) any debt due to a bank or cooperative society; (vi) any liability arising out of breach of trust or any tortuous liability; (vit) any liability in respect of wages or remuneration due as salary or otherwise for services rendered: (viii) a debt barred by law of limitation; (ix) land revenue or any other sum recoverable as arrears of land revenue; and (x) any liability in respect of maintenance whether undera decree of civil court or otherwise; (i) "debtor" means a person who owes a debt and - (i) who earns his livelihood mainly by agriculture, and is either a land-owner, or tenant of agricultural land, or a servant of a land-owner or ofa tenant of agricultural land; or (ii) who earns his livelihood as an agricultural labourer paid in cash or kind for work connected with agriculture; Explanation.-(a) The term debtor includes an agriculturist notwithstanding the fact that he has joined service in the Armed Forces of the Union; provided that his family is engaged in agriculture; and (b) adebtor shall not lose his status as such because of the reason that- (i) heearns income by using his plough cattle or tractor for purposes of transport; or (ii) he does not cultivate with his own hands; i) "Forum" means the District Agricultural Debt Settlement Forum established under section 5 of this Act; (k) "Government" means Government of Punjab unless the context otherwise requires; ()) "notified" means notified by notification published by the Government in the Official Gazette; (m) “prescribed" means prescribed by rules made under this Act; PUNJAB GOVT. GAZ.7. (E(XEXTTR A), MA Y 4, 2016 (VYSK I4, 1938 SAKA) . in) "rules" means rules made undeta r thisthi Act; *t; ¢a nd fo) "Tribunal" " means s th the e Punjab Agricultural Debt S 7 e ttlement ry Tri. buna| established under secttii on 6 of “tthhii s Act. Deemed 3. Notwithstanding anything contained in any other law for the time . discharge. being in force or in any contract or other i f ns n ti ument haavvinig ng the force of Jaw or otherwise,- (a) every debt, together with any interest payable thereon, owed on . the commencement of this Act by a debtor, shall be deemed to be wholly discharged, if it is so decided/determined by an order in writing by the Forum or the Tribunal on an application filed under this Act; and (6) every property pledged or mortgaged by a debtor whose debt is deemed to be discharged under clause (cq) shall stand released and Shall vest in him free from all encumbrances when such debt is deemed to be discharged. i C n a t l e c r u es l t a , t ion of s m i a m y p le b e 4. i n n o t t e i r f T e i h s e t e d c i a b n y l t c e u r t l h e e s a t t e G d o p a v y e o a n r b n l y m e e e a n r o t l n . y th b T e a h s e i d s e , b i t n te s r h e a s l t l p b a e ya c b a l l e c ul o a n t e t d h e at d e s bt u , c h sh r a a l t l e b a e s D [ i : s s t t r a i b c l t i shment of 5. (1) The Government shall establish a District Agri Agriculture Debt Settlement Forum. to be a ( p 2) p oin T t h e e d F b o y ru th m e G sh o a v l e l rn C m on e s n i t s . t of three members including a Chairman, Judge ( o 3 r ) a r T e h t e i re C d ha Ad i d r i m ti a o n n al of the Di F ct o ; rum shall be " 4 reti i red Dis i ‘ot t st r r i ee c t and Sessions a r g e r p i r c e u s l e tu n r t a i l n g loa c ns o : m munity of fa rmers and Other the e c m r r e i e d n d i i e t t n o t r s P w e h r h o s ons p , r ovi o d a n d e e Provided that- () the Persons ap (ii) they Shall be a (i) they shall not be eligible for " P e e - r a i p o p d oi o n f t t m h e r n ee t years; and PUNJAB GOVT, GAZ. (EXTRA), MAY 4, 2016 49 (VYSK 14, 1938 SAKA) (5) ‘The Forum shall have the jurisdiction to make settleme nt between the debtor and his creditor if - (i) the loan has been taken by the debtor or provided by the creditor for agricultural purposes; and (ii) the total debt of the debtor does not exceed rupees fifteen lacs, 6. (1) The Government shall establish a Punjab Agricultural Debt Establishment of Settlement Tribunal (hereinafter referred to as Tribunal) comprising of three Debt Settlement Tribunal. members including a Chairman. (2) The Chairman of Tribunal shall be a retired Judget ofa High Court. (3) Twomembers of the Tribunal shall be appointed by the Government from amongst the eminent persons having experience in social service, agriculture, financial services, banking and civil services: Provided that -* (i) the persons appointed as Chairman and members shal not be above the age of sixty-five years; (ii) they shall be appointed for a period of three years: and (iii) they shall not be eligible for re-appointment. 7. (1) The quorum of the Forum or the Tribunal shall be two members Transaction of business of the including the Chairman. Forum and (2) Where the Chairman and members of the Forum or the Tribunal Tribunal. are not unanimous on any point or issue, the decision of the majority shall prevail. 8. Noact of the Forum or the Tribunal shall be deemed to be invalid Acts of the Forum or the by reason only of the existence of any vacancy of a member of the Forum or Tribunal not to the Tribunal or of any procedural defect in the transaction of business of the be invalid by Forum or the Tribunal. | certain defects. 9. (1) Adebtor or any of his creditors may apply to the Forum within Application for determination and whose jurisdiction, the debtor resides or holds any land to determine and settle settlement of the debt between the debtor and his creditor(s). debt. (2) Anapplication to the Forum shall be made in writing and signed by the applicant. 10. An application under this Act, shall be presented to the Chairman Particulars of application. and it shall contain the following particulars, namely:- (a) in the case of a debtor - 50 PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 (VYSK 14, 1938 SAKA) | ( ( i i i ) ) t t h h e e p p a l r a t c i e c ul w a h r e s r e ofa h l e l re c s l i a d i e m s s o a r g a h i o n l s d t s h l i a m n d; t ogether with names and r ‘ esidences of his creditors; (iii) a statement that his total amount of debts does not exceed rupees fifteen lacs; (iv) astatement whether he has previously filed an application in respect of the same debt before the Forum and if so, then the outcome thereof; and (v) a statement of grounds of application and relief claimed alongwith copies of documents relied upon; and (b) inthe case ofa creditor(s) - (i) the place where the debtor resides or holds land; (ii) the amount and particulars of his claim against such debtor; and (iii) a statement of grounds of application and relief claimed alongwith copies of documents relied upon. Procedure on 11. (J) Onreceipt ofan application under section 9, the forum shall receipt of pass an order fixing a date and place for hearing the application. application, (2) The Forum may pending its final decision on application, make such interlocutory order including the order for keeping the recovery of debt in abeyance, as it may deem necessary in the ‘interest of justice. Notice calling 12. (1) On the date fixed under sub-section (1) of section 11, the t u o p o s n u bm t i he t creditor Forum shall issue notice to the creditor of the debtor to submit a statement of statement. debt owed to such creditor by the debtor, Such statement shall be submitted to the Forum in-writing giving details of every transaction of debit and credit in the account of the debtor within a Period of two weeks alongwith the copies of doc P u r m o e vj n ts to be relied upon in Support of his claim: ° rovided that the Forum may extend this period up to one month for subm PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 5| (VYSK 14, 1938 SAKA) shall be deemed to be duly discharged for all purposes and all occasions against such creditor, and every debt owed to two or more redictors jointly, of which such statements or statements signed by all such creditors or their recognized agents has or have not been so submitted, shall be deemed to be so discharged against such creditors as have failed to submit the said statement, but only to the extent of their respective shares in the said debt: Provided that no such debt shall be deemed to have been discharged against any creditor whose name has not been included in the application made under section 9. (3) tfadebtor ora creditor fails to appear before the Forum without sufficient cause after due service, the Forum shall proceed ex-parte to determine and settle the debt. 13. (J) Every creditor submitting in compliance ofa notice issued Proceduroen under sub-section (/) of section 12, a statement of the debts owed to him, submission of shall furnish, alongwith the statement, full particulars of all such debts, and Nebtee emis of shall at the same time, produce all documents (including entries of books of account) on which he relies to support his claims, together with a copy of every such document. (2) With a view to ascertain the originality and correctness of the documents produced under sub-section (J), the Forum shall make thorough verification thereof and after ascertaining the same, it shall retain the copies of such documents and return the original to the creditor. 14. (J) Ifacreditor or a debtor, as the case may be, challenges the Power of the genuineness or enforceability or the total amount of debt or principal or rate of F sutie ae i : nterest or amount of i ; nterest or date of rai . sing of any debt i . ncluded i . n an adjudicate. application, the Forum shall adjudicate upon the issue. (2) The Forum shall determine in the case of each debt, shown in the application made by the debtor or his creditor under section 9 or in the statement furnished by the creditor under section 12, other than a debt, declared non- genuine or unenforceable, the principal amount originally advanced, the amount paid by the debtor towards the principal or interest or both and the amount of principal and interest payable as notified under this Act. (3) The Forum shall decide every application submitted under section 9 within a period of three months from the date of application. (4) Where the debtor is found to have repaid to the creditor an amount UNJAB GOVT. GAZ. (EXXT TRA), MA Y 4, 2016 (VYSK 14, 1938 SAKA) — _ . 4 equal to, or excecding, dcf ouble the apmroiuncnitp,a l Wh a i m c o h u nt m , a ke o s r t t h h e e d t e o b ta t l o r re o p n a y b m e e i n n g apprised of such f s i n n d d i i ng, pa a y y s s al y ‘ o s a qual I t o del ouble the amount of princip al, - the For l um a ! ne s hall ( fo b d a e h c l at a s r a e c t | he deby . ts hfululy lld islchiasrcgheadr ged é a nd thereupon the provisions of clause (b) tion 3, shal apply. - (Od 5 ) The Wh Forum shal ‘ l keeping in view the outstanding am 1 ou ‘ n a t o Principal {a nd interest as determined under sub-section (2), and the paying capacity of fthe amount of debt, settled or determined the debtor, order the repayment o é in such installments as it may deem fit. (6) Ifthe Forum finds that the provisions of the Punjab Regulation of Accounts, Act, 1930, have not been complied with by the creditor, it may, for the reasons to be recorded in writing disallow the interest partly or wholly for the period of non-compliance. The creditor shall issue a duly authenticated passbook to the debtor, clearly giving the details of his loan account. P F o o w r e u r m s a o n f d the 15. The Forum and the Tribunal may exercise all such powers with Tribunal to referrence to summoning and examining of parties and witnesses and with the summon, Re-opening of transaction. being in force, if the Foru m g h a a n s y t r h e i a n s g o n co t n o ta b i e n l e i d ev e- in any other law for the time (a) that the interest charg (b) that the transaction the Fo ( r um shal] exercise all or an ) w re. e re N eve t t r h a e n sa d c e t b i t , o o n r , y o t o f f a k t e h a e ll a n f o l a i l a c l b c o i o w l u i i t n n i t g e s p b o e i w n t e w r e r s e e , s n p e n c t a t h m e el o p y f a : rt - a i n e y s excessive interest: Gi) notwith Standing anya Sali ' ng and to or Breement, Pu pu r r porting x to closep revious account in respect of such liabilities, s t p or e c t t o r t e h p e a r y e of a n > y a s n um d , which it considers to be PUNJAB GOVT. GAZ. (EXTRA), MAY 4. 2016 53 (VYSK I4, 1938 SAKA) a (i eiee) set asi = de ei . ther wholly or i= n part or revise or alter any security given or agreement made in respect of any loan, and if the creditor has parted with the security, order him to indemnify the debtor in such manner and to such extent, as it may deem fair and proper: Provided that, in the exercise of these powers, the Forum shall not - (i) re-open any agreement purporting to close previous dealings and to create a new obligation which has been entered into by the parties or any persons from whom they claim at a date, more than five years from the date of the transaction; and (ii) do anything which affects any decree of a civil court passed before the commencement of this Act. Explanation: (1) Inthe case ofan application brought ona series of transaction, the expression "transaction" means for the purpose of clause (i) of the proviso, the first of such transactions. 2) * The interest, shall be deemed to be excessive, if it exceeds the rate of interest notified under this Act. 17. If once an application has been disposed of, the Forum shall not Bar to successive entertain subsequent application for the same cause of action between the @pplication. same parties, 18. If any question arises in any proceedings under this Act as to Decision of the Whether a loan, or liability is a debt or not or whether a person is a debtor or Forum to be final. Not, the decision of the Forum shall be final, and shall not be called in question in any Civil Court. 19. Nocivil court shall entertain:- Bar of civil (a) any suit, appeal or application for revision - suits. () to question the validity of any procedure or the legality of any order or award made under this Act ; or (ii i) to recover any debt, which is deemed to have been duly discharged, under the provisions of this Act ; or PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 — any St iit for declaration, or any suil . or < applicati i o w n n ffoar rMUiUNentiaon “ a i l r l ec ting . a ny proceedings under ‘t t hi h s i s Act Ac befo ( re the Forum, 20. (1) Anyperson, who, from the d iscovery of'any new and I™MPortan Review, fact or evidence which, after the exercise of a near’ was Not in his knowledge or could not be produced by him before or at tr e time, when an order was made by the Forum, or on account of some mistake or error apparent on the face of the record, or for any other surhietent reason, desires to obtain a review of such order, he may submit an application to the Forum for reviewing such orders. (2) On receiving an application under sub-section (/), the Forum may, ifno appeal has been filled, by reviewing its order, pass such Orders, as it may deem appropriate: Provided that the Forum shall not pass an order which adversely affects any party without giving such party an opportunity of being heard: b p e r es r e e n v P t i e r e d o w v e i d m d . o e r d e f t u h r a t n h er s ix t t h y a t d n a o y s ap a p f l te i r c at th i e o n da f t o e r o r f e v p i a e s w s in s g h all t he be o rd e e n r t , e rt s a o i u n g e h d t , to if ; Appeal. a r - g e e v r i i e e w H v e o a d w p e p v l b e i y r c , a t t i h n e o o n o a r i p n d p er e w a h l i o c f h s h t a h l t e h l e l o ie r i a gi g n a a i l n st o rd an e r or is d e n r o t pa m s o s d e i d f ie b d y t a h n e d F t o h r e um pe o rs n o a n 4 f p r p o e m a l the i n d t a h t e e H o i f gh r ece C O Ip u t r t of o n c op a y q F u O o e f s r t u s i m u o c n h on o O f r d a l e a r r w , ev w i i e t w h in a pp a li p c e a r t i i od o n o f m s a i y x ty f P il d e ay a s n (2) Any Person i d in a te t he o f H i r g e h ce ipt O ur of t “ o O n py a “ W o 8 e f 8 s r t t l h i e e o : v n e o d r o d f e b r l y a o a w f n t o W h r i e d t e h r T i r n . i o f b a u t n h p e a e l r T i r o i d b un of a l s ix m t a y y da fi y l s e an f ro a m p pe t a h l e Appearance of Party. Bar to New suits and transfer of Pending suits. ey PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 55 (VYSK 14, 1938 SAKA) (2) Any suit pending before a Civil Court on such commencement in respect of any such debt, shall be transferred by th at Court to the Forum having jurisdiction in the matter, 24, The order of the Forum passed under this Act, shall be executed Recovery of sums by the civil court having jurisdiction in the area as if it were a decree or an“: order of that court. 25. Notwithstanding anything contained in any other law for the time Overriding effect. being in force, the provisions of this Act shall have an overriding effect. 26. (1) The Government may by notification in the Official Gazette, Power to make make rules to provide for all matters for which provision is necessary or "les. expedient for the purpose of giving effect to the provisions of this Act. (2) Therules made under sub-section (/) shall be subject to the condition of previous publication. (3) Every rule made under this Act shall be laid, as soon as may be, after it is made, before the House of State Legislature, while it is in Session for a total period of ten days, which may be comprised in one Session or in two successive Sessions, and if before the expiry of the Session in which it is so laid or the successive Sessions aforesaid, the House agrees in making any modification in the rules or the House agrees 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 or omitted to be done under that rule. 27. The Government may issue directions to the Forum or the Tribunal Power of the for carrryyiinngg out the purposes of the Act and ii n particiuclualra r v with reggi ard to G is o s v ue e rn di m r e e n ct t i on t s o . speedy settlement of the debt cases before them. 28. If any difficulty arises before the Forum or the Tribunal, as the Power of the CTais e ma y be, ij n carryii ng out the purposes of thisi Act, then the FFoorruu m or the sGsoivveerdnifmfeinctu liltoe s ribunal may refer such difficulttyo the Government and the order of the Government in such matter shall be final: Provided that no such order shall be made by the Government after the expiry ofa period of three years from the date of commencement of this Act. 56 PUNJAB GOVT. GAZ. (EXTRA), MAY 4, 2016 . (VYSK 14, 1938 SAKA) s R a e v p i e n a g l . and 29. (/) TThhee Punja\é b Re lief of Indebtedness Act, 1934 js hereby, repealed. h (1 a ) v , e an d y o “ t n ) h e i n o g N r ot d t w a o k i n e t e n h s o t u r n a d n a e n d y r i ng a th c e t i t o h p n e r o t r v a e i k p s e e i n a o l n s u n o o f d f e r t t h h e i t s h A e A c c t s t a . i r d ef A e c r t r , e d sha t l o l in b e su d b e - e S m € e C d t io t n o VIVEK PURI, Secretary to Government 0 f Punjab, Dep artment of Legal and Legis lative Affairs. 1005/05-20] 6/Pb. Govt, Press, SAS Nagar