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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No -75] NEW DELHI, SATURDAY, APRIL 17, 1976/CHAITRA 28,1898

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 17th April, 1976/Chaitra 28, 1898 (Saka) The following President's Acts are published for general information: — THE TAMIL NADU GENERAL CLAUSES (AMENDMENT) ACT, 1976 No. 12 OF 1976. Enacted by the President in the Twenty-seventh Year of the Republic of India. An Act further to amend the Tamil Nadu General Clauses Act, 1891.

41 of 1976.

In exercise of the powers conferred by section 3 of the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976, the President is pleased to enact as follows:—

1. (1) This Act may be called the Tamil Nadu General Clauses (Amendment) Act, 1976.

Short

title and

commence-

ment.

    (2)  It  shall  be  deemed  to  have  come  into  force  on the 3rd day  of
March. 1976.
   2. In  the Tamil  Nadu  General  Clauses  Act, 1891 (hereinafter  referred     Inser-
                                                                                  tion of
to  as  the  principal  Act), in  Chapter  III,  after  section  22, the  following new
section  shall  be Inserted,  namely: —                                           section
                                                                                  22-A.

Tamil

Nadu

Act

Iof

1801.

Construc-, tion of refer- ences to Minister in Acts, 'etc. "22-A. Any reference to any Minister (including the Chief Minister) in any Act or in any rule, notification, order, regulation, by- law or other instrument made or issued, under such Act, shall, dur- ing the period of operation of a Proclamation issued by the President under article 356 of the Constitution in respect of the State of Tamil Nadu, be construed as a reference to the Governor or to such adviser to the Governor or to such other officer, as the Governor) may, by notification, specify in this behalf and different notifications may be Issued in respect of different Acts and instruments made or issued thereunder.".

(585)

3. (I) The Tamil Nadu Genateil', Clauses (Amendment) Ordinance,

l&76,j£-h£r£hy.j:ei>e.al;e£L

Repeal and saving.

( 2 | ^ p | ^ f t i |^

Tamil Nadu Ordi- nance 4 of 1976.

l ^ ^ i on taken under'the jffinicip^UAc|, as amende^ by the said, Orclinarvc>$a. shall be deeme<^D|hinr^'*wil' doifetw tajfiiji^itEfdlt 1iie' THrljLcifialt^cIlj|s amended by thisAcll

Reasons for the enactment

Certain Tamil Nadu Acts contain references to the Ministers (including the Chief Minister). Consequent on the issue of a Proclamation by the President under article 356 of the Constitution, the President has assumed to himself all functions of the Government of the State of Tamil Nadu and all powers vested in, or exercisable by, the Governor of the State. It has been decided that the functions of a Minister in those Acts may be per- formed by the Governor or such advisers or such other officers as may be specified by the Governor in that behalf. It was proposed to amend the Tamil Nadu General Clauses Act, 1891 (Tamil Nadu Act I of 1891) suitably and for this purpose Tamil Nadu General Clauses (Amendment) Ordinance, 1976 (Tamil Nadu Ordinance 4 of 1976) was promulgated by the Governor of Tamil Nadu on the 3rd March, 1976.

2. Parliament has under article 357 (1) (a) of the Constitution, now conferred on the President, the powers of the Legislature of the State to make laws vide the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976 (41 of 1976).

3. The proposed measure seeks to replace the Tamil Nadu Ordinance 4 of 1976.

4. In view of the urgency of the matter, it is not practicable to consult

the above Act. JGhe measure Is. ajxbrdinglvJTSerng enaCTea wfmottt refer- ence to m^dSSM^Wm^^ OTAtf JIMAT

K. K. SUNDARAM,

tfkipdt> t}xk

X&nt&lrtyldpQflii:, Justice and Company Affairs

THE PUBLIC WAKFS (EXTENSION OF LIMITATION) TAMIL NADU AMENDMENT ACT, 1976

No. 14 OF 1976

Enacted by the President in the Twenty-seventh Year, of the Republic of India.

An Act further to amend the Public Wakfs (Extension of Limitation) Act, 1959, in its application to the State of Tamil Nadu.

In exercise of the powers conferred by section 3 of the Tamil Nadu

State Legislature (Delegation of Powers) Act, 1976, the President is 41 of 1976. pleased to enact aa follows: —

1. (J) This Act may be called the Public Wakfs (Extension of Limi-

tation) Tamil Nadu Amendment Act, 1976.

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall be deemed to have come into force on the 31st day of Short title, extent and com- mence- ment.

December, 1975.

2. In section 3 of the Public Wakfs (Extension of Limitation) Act, 29 of 1959 Amend- ment of section 3.

1959 (hereinafter referred to as the principal Act), as in force in the State of Tamil Nadu, for the words, figures and letters "the 31st day of December, 1975", the worda, figures and letters "the 31st day of Decem- ber, 1980" shall be substituted.

3. (1) The Public Wakfs (Extension of Limitation) Tamil Nadu

Amendment Ordinance, 1976, is hereby repealed.

Kepeal and saving.

Tamil Nadu Ordinan- ce 6 of 1976.

(2) Notwithstanding such, repeal, anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act as amend- ed by this Act.

FAKHRUDDIN ALI AHMED,

President,

K. K. SUNDARAM, Secy- to the Orovt. of India,

3tte4Wiy tfttf tlw

as subsequently amended in the State of Tamil Nadu, exten1 part of public wakfs. Though, availing of this provision, a number of suits have already been ffled^;j(^|^f7^re(-j/ni]!j^lppi]r^|J-p|[^e^'ip which suits have yet to be filed. In yjew. o| this, it was decided to extend the time-limit for filing such suits in 'the State of Tamil Nadu up to the 31st December, 1980, and for this purpose the Public Wakfs (Extension, of Limitation) Tamil Nadu Amend- ment Ordinance, 1975 (Tamil Nadu Ordinance 20 of 1975) was promul- gat(^)tyL&i&bf Tamil Nadu on the 30th December, 1975.

iraF-flf THE" GAZETTE OF INDIA BXXRADltDlNAEy_: 59¹

T H E T J O TL WAMc13?iDEBTBB))A(Ml<5fcJLT"MSTS

(TEMPORARY RELIEF) ACT, 1976 brm

N^) lfoqtsim

An Act to provide temporary relief to indebted agPicHJtM^ in the

.Statftjtf-Tamil. K^du,.

•na p'ABp-^prcJfie ,ffE WfiiPPwera

1. (1) This Act may be called'{HVtbM'NmfIhd@b¥S7Airieulturista

(Temporary Relief) AcV-rtSSBin

(2) It extends to the whole of the State q^^'^pi^jWjfwt^i

Short title, extent and com- mence- ment.

|^j I ..••• ' :-^mec/ tH'^a^^tfia'fefc'fbrte^nfithe 15th day of

2. Htahfe l&rtptWltefKi ^tfptfwpifftyffiftisff ^ u ^ ^_

Defini- tions.

(a) '^^gm^ffl'TiHtf^'-ttffififai'fldftia^Wvibr (apiculture or hor-

Mttiilftitflamabflbeiaiff^lami .a"5PurteMftat.,ta.a..resideatial buildinc:

(b) "agriculturist'^ .rAe^s! a ^etson y^vhb "6\WiS ''&n'' interest in agricultural land, and " who, by"' reason v'hi/ro.cH"flitereat, is in

9 of 1932.

1 of 1966.

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 or a company as defined in the Companies Act, 1956 or a corpo- ration formed In pursuance of an Act of Parliament ofi the United Kingdom or of any special Indian law, or

43 of 1961.

Tamil

Nadu

Act V of

19S5.

Tamil

Nadu

Act 1 of

(ii) any person who was assessed to income-tax under the Income-tax Act, 1961 or to agricultural income-tax under the Tamil Nadu Agricultural Income-tax Act, 1955 or to sales tax under the Tamil Nadu General Sales Tax Act, 1959 or under the Central Sales Tax Act, 1956 in any of the years 1971-72, 1972-73, 1973-74 and 1974-75.

1959.

74 of 1956.

Explanation-.—Where a joint Hindu family or a tarwad, tavazhi, kutumba or kavaru is an agriculturist, every co-parcener or member of the tarwad, tavazhi, kutumba or kavaru, as the case may be, shall be deemed to be an agriculturist, provided that he has not been assessed to income-tax or agricultural income-tax or sales tax in any of the years 1971-72, 1972-73, 1973-74 and 1974-75;

(c) "debt"—

(i) means any sum of money which a person is liable to pay under a contract (express or implied) for consideration received; and

(ii) includes rent in cash or kind which a person is liable to pay or deliver in respect of the lawful use and occupation of agricultural land.

Explanation I.—For the purpose of this clause, "rent", in rela- tion to agricultural land, shall mean rent accrued due for the fasll year ending with the 30th day of June, 1974 and for any previous fasli year.

Explanation II.—It is immaterial that the sum or produce is re- coverable only by sale of property in enforcement of a mortgage or charge or that the contract was entered into by the' person's pre- decessor-tin-title or by the manager of the Joint Hindu family or the karanavan of the tarwadi 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 im- movable property (not being house property or agricultural land) accrued due on or after the 16th day of January, 1975;

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

(iv) any liability in respect of maintenance;

(u) any sum payable to the State Government or tha Central Government or to any local authority, whether by way ot w e- nue, tax, cess or loan or otherwise;

Tamil Nadu Act 53 of 1061.

(vi) any suln payable to any co-operative society, including a land development bank, registered or deemed to be registered under the Tamil Nadu Co-operative Societies Act, 1961, provided that the right of the society to recover the sum did not arise by reason of an assignment made subsequent to the 15th day of September, 1974;

(vii) wages or remuneration due as salary, or otherwise for service rendered;

(viii) any liability in respect of any sum due to—

(A) any banking company to which the Banking Regu- 10 of 1949.

lation Act, 1949' applies;

(B) the State Bank of India constituted under the State 23 of 1955.

Bank of India Act, 1955;

(C) any subsidiary bank as defined in clause (!<-) of

38 of 1959.

section 2 of the¹ State Bank of India (Subsidiary Banks) Act, 1950;

5 of 1970.

(D) any corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;

10 of 1963.

(E) the Agricultural Refinance and Development Corpo- ration, established under the Agricultural Refinance and Development Corporation Act, 1963;

(F) any other financial institution notified by the State Government in the Tamil Nadu Government Gazette;

(d) "pay", with its grammatical variations, includes deliver;

(c) "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.

Bar of suits and applica- tions.

3. No suit for the recovery of a debt shall be instituted, no applica- tion 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 agriculturist in any civil or revenue court on and from the date of commencement of this Act and before the expiry of one year from the said date.

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 before the ex- piry of the period mentioned in this section.

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.

Stay of proceed- ings.

4. (2) 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 pro- ceedings consequent on orders or decrees made in appeals, revision petitions, or applications for review, shall, subject to the next succeeding sub-section, stand stayed until the¹ expiry of one year from the date of commencement of this Act:

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 preserva- tion 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 (7.) 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 appli- cation were stayed.

Exclusion of time for limi- tation.

5. (1) In computing the (period of limitation or limit of time pres- cribed 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 application was barred by section 3 or during which the plaintiff or his predecessor-in title, believing in good faith that section 3 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 clause (22) of section 3 of the General Clauses Act, 1897. 10 of 1897.

(2) Where in a suit or an application in which the question of exclusion of time under sub-section (1) arises, the defendant or the res- pondent, or one of the defendants or respondents, with respect to whom the question is raised, would have been an agriculturist but for the fact that in the year 1971-72, 1972-73, 1973-74, or 1974-75 he had been assessed to income-tax under the Income-Tax Act, 1.961 or to agricultural income-tax under the Tamil Nadu Agricultural Income-tax Act, 1955 or sales tax under the Tamil Nadu General Sales Tax Act, 1959, or under the Central Sales Tax Act, 1956, it shall be conclusively (presumed that, in refraining from instituting the suit or making the application, the creditor believed in good faith that such defendant or respondent was an agriculturist

43 of 1961. Tamil Nadu Act V of 1955. Tamil Nadu Ad; 1 of 1959. 74 of 1958.

6. Every transfer of immovable property by a debtor entitled to the

benefit of section 3 or section 4, made on or after the date of commence- ment of this Act and before the expiry of one year from the said date shall, in any suit or other proceeding, 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.

Effect of transfer of im- movable property by the debtor.

Act to override other lawi, con- tracts, etc. 7. The provisions of this Act shall have effect notwithstanding any- thing inconsistent therewith contained in the Tamil Nadu Cultivating Tenants Protection Act, 1955, the Tamil Nadu Public Trusts (Regula- tion of Administration of Agricultural Lands) Act, 1961, the Malabar Tenancy Act, 1929, the Tamil Nadu Cultivating Tenants (Special Pro- visions) Act, 1968, the Tamil Nadu Cultivating Tenants Arrears of Kent (Relief) Act, 1972 or in the Code of Civil Procedure, 1908 or in any other law for the time being in force, or any custom, usage or contract, or decree or order of a court or other authority.

Tamil Nadu Act XXV of 1955. Tamil Nadu Act 57 of 1961. Tamil Nadu Act XIV of 1930. Tamil Nadu Act 18 of 1968. Tamil Nadu Act 21 of 1972. 5 of 1908.

8. (1) The State Government may make rules to carry out the pur-

poses of this Act.

Power ta make rules.

(2) All rules made under this Act shall be published in the Tamil Nadu Government Gazette, and unless they are expressed to come into force on a particular day, shall comt* into force on the day on which they are so published.

(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 pre- viously done under that rule.

9. (i) The Tamil Nadu Indebted Agriculturists (Temporary Relief)

No. 2 Ordinance, 1976 is hereby repealed.

Repeal and saving.

Tamil Nadu Ordinance

7 of 1978,

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken unde'r the corresponding provision of this Act.

FAKHRUDDIN ALT AHMED,

President.

K. K. SUNDARAM, Secy, to the Govt. of Indi*.

Reasons for the enactment

By the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1975 (Tamil Nadu Act 10 of 1975), suits for the recovery of debts due from agriculturists and applications for the execution of the decrees for payment of money passed in any such suit were barred for the period up to the 15th January, 1976. Though the drought conditions had eased in view of the favourable monsoon, the agriculturists were not in a position to repay after the harvest all the loans taken by them. They required some time to rehabilitate themselves. It was, therefore, decided that the relief granted to agriculturists should be extended for a further (period of three months. The Tamil Nadu Indebted Agriculturists (Tem- porary Relief) Ordinance, 1976 (Tamil Nadu Ordinance 1 of 1976) was promulgated to give effect to the above decision.

2. The President issued a Proclamation on the 31st January, 1976 under article 356 of the Constitution, in relation to the State of Tamil Nadu, declaring inter alia that the powers of the Legislature of the State shall be exercisable by or under the authority of Parliament. The Ordinance referred to above could not be replaced by an Act of Parlia- ment for want of time. Hence by virtue of the powers delegated to the Governor of Tamil Nadu by the President, the Tamil Nadu Indebted Agriculturists (Temporary Relief) No. 2 Ordinance, 1976 (Tamil Nadu Ordinance 7 of 1976) was promulgated and the relief granted to the agriculturists was extended for a period of one year from the 15th January, 1976, instead o£ for three months as provided in the Tamil Nadu Ordinance 1 of 1976.

3. The proposed measure seeks to replace the Tamil Nadu Ordinance 7 of 1976.

4. Parliament has, under article 357(1) (a) of the Constitution, now conferred on the President, the powers of the Legislature of the State to make laws vide the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976 (41 of 1976).

5. In view of the urgency of the matteri, it is not practicable to consult the Consultative Committee on Tamil Nadu Legislation constituted under the above Act. The measure is accordingly being enacted without reference to the Consultative Committee.

I. J. NAIDU,

Secy, to the Govt. of India,

Ministry of Agriculture and Irrigation

(Department of Rural Development).

THE TAMIL NADU INDEBTED PERSONS (TEMPORARY

RELIEF) ACT, 1976

No. 16 OF 1976

Enacted by the President in the Twenty-seventh Year of the Republic of India.

An Act to provide temporary rehef to certain indebted persons in the State of Tamil Nadu.

41 of 1976.

In exercise of the powers conferred by section 3 of the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976, the President is pleas- ed to enact as follows: —

1. (1) This Act may be called the Tamil Nadu Indebted Persons (Tem-

porary Relief) Act, 1976.

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall be deemed to have come into force on the 15th day of

Short title, extent and com- mence- ment.

January, 1&76.

2. In this Act, unless the context otherwise requires,—

Defini- tions.

(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 denned in clause (5);

(ii) any debt to which the Tamil Nadu Indebted Agricultur-

ists (Temporary Relief) Act, 1976, is applicable;

(2) "indebted person" means any person from, whom any debt

is due:

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 day of

43 of 1961.

March, 19174 and the 31st day of March, 1975, been assessed to income-tax under the Income-tax Act, 1961 or under the income- tax law in force in any foreign country; or

(w) has in both the financial years ending on the 31st day of

March, 1974 and the 31st day of March, 1975, been assessed to sales tax under the Tamil Nadu General Sales Tax Act, 1959 or under the Central Sales Tax Act, 1956; or

Tamil Nadu Act 1 of 1959. 74 of 1956.

Tamil Nadu Act V of 1920.

(in) has in all the four half-years immediately preceding the 1st April, 1975 been assessed to property or house-tax in respect of buildings or lands other than agricultural lands, under the Tamil Nadu District Municipalities Act, 1920, the Madras City Municipal Corporation Act, 1919, the Madurai City Municipal Cor- poration Act, 1971, the Tamil Nadu Panchayats Act, 1958, the Can- tonments Act, 1924 or any law governing municipal or local bodies in this State or in any other State or Union territory, provided that the aggregate annual rental value of such build- ings and lands whether let out or in the occupation of the owner, is not less than two thousand and four hundred rupees.

Tamil Nadu Act IV of 1919. Tamil Nadu

Explanation.—The annual rental value of any building or

land for the purposes of clause (m) of this proviso, shall—

(1) where the assessment is based on the annual rental

value, be deemed to be such value;

Act 15 of 1971. Tamil Nadu Act XXV of 1958. 2 of 1924.

(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 ascer-

tained in the prescribed manner:

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 Agriculturists Relief Act, 1938 and entitled to the benefits of that Act;

Tamil Nadu Act IV of 1938.

(3) "pay", with its grammatical variations, includes deliver;

*

(4) "person" means an individual and includes an undivided Hindu family, a marumakkattayam or aliyasantana tarwad or tavazhi, but does not include a body corporate, a charitable or re- ligious institution or an unincorporated company or association or any firm as denned in the Indian Partnership Act, 1932;

" of 193X

(5) "rent" means the rent payable by any tenant to the owner of any building in respect of such building or portion thereof occupied by such tenant.

Explanation.—For the purposes of this clause, the expression "building" shall have the same meaning as in clause (2) of section 2 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960;

(6) "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.

Tamil Nadu Act 18 of 1960.

3. Nothing in this Act shall affect debts and liabilities of any indebted

person falling under the following heads: —

(a) any revenue, tax or cess payable to the State Government

or any oither sum due to them by way of loan or otherwise;

Certain debts and liabilities not to be affected.

(b) any revenue, tax or cess payable to the Central Government

or any other sum due to it, by way of loan or otherwise;

(c) any tax or cess payable to any local authority or any other

sum due ta it, by way of loan or otherwise;

(d) any liability in respect of any sum due to any co-operative society including a land development bank registered or deemed to be registered under the Tamil Nadu Co-operative Societies Act. 1961:

Tamil Nadu Act 53 of 1981.

Provided that where the liability mentioned in this clause arises by reason of an assignment to any such co-operative society either such assignment has taken place before the 15th day of March, 1975 or Is an assignment to any such co-operative society of a loan granted by another such co-operative society;

(c) any liability arising out of breach of trust;

(f) any liability in respect of maintenance whether under a dec-

ree¹ of court or otherwise;

(g) any liabilitv in 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 denned in the Companies Act,

1956;

1 of 1956.

(B) any banking company to which tho Banking Regulation

Act, 194$ .applies:

10 of 1949.

(C) the SU.tr BanV of India constituted under the State

Bank of India Act. 1955;

23 of 1955.

CD) anv subsidiary hank as denned in clause CJc^ of section

2 of the State Bank of India (Subsidiary Banks) Act, 1959;

38 of 1959,

(E) anv oorresponr)iri0 new bank as define m clause (d)

nf section 2 of the Banking Companies (Acquisition and Trans- fer of Undertakings) Act, 1970;

5 of 1970.

(F) any company or corporation owned or controlled by

the Central Government or any State Government;

(G) the Committr* for the Administration of the Amal- gamated Tamil Nadu Shares of the Post War Services Recons- truction Fund and Special Fund for Reconstruction and Reha- bilitation of Ex-servicemen;

(H) any ofher financial institution notified by the State Government in the Tamil Nadu Government Gazette.

Bar of suits and applica- tions.

4. No suit for the recovery of a debt shall be instituted, and no appli- cation for the execution of a decree 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 date of commence- ment of this Act and before the expiry of one year from the said date.

Eocplanation I.—"suit" does not Include a claim to a set-off made in a suit instituted by an indebted person.

Eocplanation II.—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.

Stay of proceed- ings.

5. (1) All further proceedings in suits and applications of the nature mentioned in section 4 in which relief is claimed against an indebted person, 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, reyision petitions, or applications for review, shall, subject to the next succeeding sub-section, stand Nstayed until the expiry of one year from the date of commencement of this Act:

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 pre- servation 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 subjection (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 application were stayed.

Exclusion of time for limi- tation.

fi. 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 4, or during which the plaintiff or his predecessor-in-title, believing in ^ood faith that section 4 applied to such suit or such application, refrained from institu- ting the suit or making the application, shall be excluded.

Eocplanation.—"good faith" shall have the meaning assigned to it in 10 of 1897 clause (22) of section 3 of the General Clauses Act, 1897.

7. Every transfer of immovable nroperty bv an indebted person en- titled to the benefit of section 4 or section 5. made after the date of commencement of this Act and before the expiry of one year from the said date, shall, in any suit or other proceeding, with respect to such transfer, be presumed until the contrary is proved, to have been made with intent to defeat of delay the creditors of the transferor.

Effect of transfer of im- movable property by an indebted person.

o of 1908.

8. The provisions of this Act shall have effect notwithstanding any- thing inconsistent therewith contained in the Code of Civil Procedure, 1908, or in any other law for the time being in force, or any custom, usage or contract, or decree or order of a court or other authority.

Act to override other laws, contracts, etc.

ft. (1) The State Government may make rales to carry out the pur-

poses of this Act.

Power to make rules.

(2) All rules made under this Act shall be published in the Tamil Nadu Government Gazette, and unless they are expressed to come into force on a particular day shall come into force on the day on which they are so published.

(5) 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 Ho,uses 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.

10. (2) The Tamil Nadu Indebted Persons (Temporary Relief) No. 2

Ordinance, I9f76, is hereby repealed.

Repeal and saving.

Tamil Nadu Ordi- nance ft of 1976.

(2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provision of this Act.

FAKHRUDDIN ALI AHMED, President.

K. K. SUNDARAM,

Secy, to the Govt. of India.

Reasons for the enaci-nieni

fey thd Tamil Nadu Indebted Persons (Temporary Relief) Aet, 1973 (Tamil Nadu Act 48 of 1975), suits for the recovery of debts due from non-agriculturist indebted persons and applications for the execution of decrees for payment of money passed in any such suit were barred for the period up to the 15th January, 1976. Though the drought condi- tions had eased- the economic conditions of such indebted persons had not improved to a great extent and they required some more period of moratorium to rehabilitate themselves. It was, therefore, decided that the relief granted to non-agriculturist indebted persons should be extended for a further period of three months. The Tamil Nadu Indebted Persons (Temporary Relief) Ordinance, 1976 (Tamil Nadu Ordinance 2 of 1976), was promulgated to give effect to the above decision.

2. The President issued a Proclamation on the 31st January, 1976 under article 356 of the Constitution, in relation to the State of Tamil Nadu, declaring inter aZi^x that the powers of the Legislature oi the State shall be exercisable by or under the authority of Parliament. The Ordinance referred to above could not be replaced by an Act o£ Parliament for want of timp. Hence by virtue of the powers delegated to the Governor of Tamil Nadu by the President, the Tamil Nadu Indebted Persons (Tem- porary Relief) No. 2 Ordinance, 1976¹ (Tamil Nadu Ordinance 8 of 1976), was promulgated and the relief granted to the indebted persons was ex- tended for a period of one year from the 15th January, 1976 instead of for three months as provided in the Tamil Nadu Ordinance 2 of 1976.

3. The proposed measure seeks to replace the Tamil Nadu Ordinance 8 of 1976.

4. Parliament has, under article 357(1) (a) of the Constitution, now conferred on the President, the powers of the Legislature of the State to make laws vide the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976 (41 of 1976).

5. In view of the urgency of the matter, it is not practicable to con- sult the Consultative Committee on Tamil Nadu Legislation constituted Uiider the above Act. The measure is accordingly being enacted with- out reference to the Consultative Committee.

I. J. NAIDU,

Secy, to the Govt. of India,

Ministry of Agriculture and Irrigation (Department of Rural Development).

1 HE TAMIL NADU INDEBTED AGRICULTURISTS AND INDEBTED PERSONS (SPECIAL PROVISIONS)

ACT, 1976

No. 17 OF 1976

Enacted by the President in the Twenty-seventh Year of the Republic of India An Ac to make certain special provions in respect of certain indebted agriculturists and certain indebted persons in the State of Tamil Nadu.

41 of 1976

In exercise of the powers conferred by section 3 of the Tamil Nadu State Legislature (Delegation of Powers) Act, 1976, the President is pleased to enact as follows: —

1. (I) This Act may be called the Tamil Nadu Indebted Agriculturists and Indebted Pelrsons (Special Provisions) Act, 1976.

Short title and extent.

(2) H extends to the whole of the State of Tamil Nadu.

2. In this Act, unless the context otherwise requires,—

Deflnl. tlpna, (a) "agriculturist" means an agriculturist as defined in clause* (b) of section 2 of the Tamil Nadu Indebted Agricultlrists (Tempo- rary Relief!) Act, 1976;

(h) "debt" means,—

(i) in relation to an agriculturist, a debt as denned in clause (c) of section 2 of the! Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976,

               5.  The  provisions  of  this  Act  shall  have  effect  notwithstanding  any- Act  to
9 of  1872. thing  inconsistent  therewith  contained  in  the  Indian  Contract  Act, 1872,  override
                                                                                              other
            or  in  any  other  law  for  the  time  being  in  force\  or  any  custom,  usage or laws,
            contract,  or  decree or  order  of  a  court  or  other  authority.              contracts,
                                                                                              etc.
Tamil          6.  (1) The  Tamil  Nadu  Indebted  Agriculturists  and  Indebted  Persons     Repeal
Nadu                                                                                          and
Ordinance   (Special  Provisions)  No.  2 Ordinance,  1976, is, hereby  repealed.             saving.
9 of 1976.
Tamil          (2)  Notwithstanding  such  repeal,  anything  done  or  any  action  taken
Nadu
Act         thing  inconsistent  therewith  contained  in  the  Indian  Contract  Act,  1872,
XXIII  of   1943,  as  amended  by  the  said  Ordinance  shall  be  deemed  to  have  been
1943.       done  or  taken  under  the  corresponding  provision  of  this  Act  or,  as  the
            case  may  be,  of  the  Tamil  Nadu  Pawnbrokers  Act,  1943, as  amended  by
            this Act,