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LAND IMPROVEMENT LOANS ACT, 1883
19 OF 1883
12TH OCT 1883
"The law under which advances can be made for the improvement of lands is Act 26 of
1871 as amended by Act 21 of 1876.” The object of the Act was to define the improvements for which advances could be made by Government, to provide for the security of a first charge on the land improved, and to lay down the conditions on which advances were to be made. It was hoped by the Government when the Act was passed that it would be largely used, and that the benefit to the country would be considerable.
This hope has not been realized. In section 3, Chapter IV, of the second part of their Report, the Famine. Commissioners write: 'the evidence we have received regarding the working of this Act renders it unquestionable that it has failed to realize the intention of promoting improvements and that there is a very general reluctance to make use of its provisions. The sums which have been advanced under the Act are extremely small, and bear no proportion whatever to the need which the country has of capital to carry out material improvements'. In accordance with the suggestions of the Famine Commissioners, the Government of India called for the opinions of the Local Governments on the working of the Act and the causes of its failure. There was, in the replies received, an almost unanimous consensus of opinion that both the Act and the rules under it require simplification. It has accordingly been decided to bring forward a Bill to consolidate and amend the present law. For the somewhat complicated provisions of sections 6 to 13 of Act XXVI of 1871the Bill proposes to adopt the simpler role that advances may be made to any person who is entitled, under the law for the time being in force, to make improvements of his land. For the rest, everything which it is not absolutely necessary to provide for in the body of the law is left to rules to be framed by the Local Governments. The objections sometimes taken to this method of legislation do not seem to apply in this case, as the only interests who can be affected by the rules are those of the Government and it may be presumed that sufficient care will be taken to guard them. The local conditions and peculiarities of the several parts of India are so varied that it is only by leaving great discretion to the Local Governments that rules suitable to the working of an 'Act of this kind can be framed: If this Bill is passed, the Legislature will have done all that it can to remove the obstacles alleged to stand in the way of the success of the measure. There is reason however to fear that the owners of land will not resort to Government for advances of tills description to any large extent. It is impossible for the district officials to have any intimate knowledge of the character and means of each applicant; and, therefore, a certain amount of form, enquiry, and consequently, of delay and trouble, must precede the payment of money from the public treasury. It is possible that private companies may be established whose agents will be able to offer more facilities to applicants. It is proposed, therefore, to take advantage of the present opportunity to provide encouragement to private enterprise in this field. Provisions have accordingly been inserted in the .Bill to enable the Government to authorise companies or associations of a private character to make advances for the improvement of land. A company or association so authorized wilt be bound to transact its business on principles and conditions laid down by the Government for its guidance and advances made in accordance with those principles and conditions will be considered advances under the Act, and will be secured and recoverable in the same manner as if they were loans from the Government Treasury."- Gazette of India, 1882, Pt. V, p. 954.
An Act to consolidate and amend the law relating to loans of money by the Government for agricultural improvements. Whereas it is expedient to consolidate and amend the law
relating to loans of money by the Government for agricultural improvements. It is hereby
enacted as follows :- This Act has been extended to the States merged in the States of-
Madhya Pradesh: see M. P. Act 12 of 1950, section 3(1) (3-4-1950). Maharashtra; see Bom. Act 4 of 1950, section 3 (30-3-1950). Orissa: see Ori, Act 4 of 1950, section 4 (3-3-1950). Punjab: see Punj. Act 5 of 1949, secton 3 (15-4-1950). Tamil Nadu: see T. N. Act 30 of 1949, section 3 (1-1-1950). In its application to Andhra Pradesh, while repealing the Hyderabad Land Improvement Loans Act, 1950(Hyd. 3 of 1950), this Central Act is extended to, and shall be in force in the transferred territories as it is in force in the Andhra area-Andh. Pra. 19 of 1958, sections 3and8. This Act, as in force in the Mahakoshal region, has been extended to, and shall be in force in all the other regions of the State of Madhya Pradesh-M. P. Act 23 of 1958, section 3(1). This Act is extended to and shall be, in virtue of such extension, in force in the Hyderabad and Saurashtra areas of the State of Bombay (now States of Maharashtra and Gujarat). The Land Improvement Loans Act, 1883, as modified and applied to the Saurashtra area of the State of Bombay (now of Gujarat) by the State of Saurashtra (Application of Central and Bombay Acts) Ordinance, 1948, the Hyderabad Land Improvement Loans Act, 1950, and the C. P. and Berar Land Improvement Loans (Amendment) Act, 1949 are repealed-Bom Act 27 of 1958,sections 2and5(1-4-1958). This Act as in force in the State of Madras is extended to, and shall be in force in, the Kanyakumari district and the Shencottah taluk of the Tirunelveli district-T. N. Act 22 of 1957,section 3(18-12-1957). . This Act is extended lo, and shall be in force in, the territories which were comprised in the former State of Pepsu-Punj. Act 5 of 1957,section 4 (1)(3-4-1957). This Act has been declared to be in force in- (1) the Senthal Parganas by the Senthal Parganas Settlement Regulation (3 of 1872),section 3(now in Bihar): .' (2) the Khondmals District by the Khondmals Laws Regulation (4 of 1936),section 3and Schedule (now in Orissa): (3) the Angul District by the Angul Laws Regulation (5 of 1936),section 3and Schedule. This Regulation has been now repealed by Orissa Act 19 of 1967 and Angul District as formed under it is now a sub-division of the Dhenkanal District. This Act was extended to the Union territories of Himachal Pradesh and Manipur by Hima. Pra. A.L.O., 1948 and by S, R.O.I 865, dt. 11-11-1952, made undersection 2 of Act 30 of 1950, respectively. Himachal Pradesh is a State from 25-1-1971-See Act 53 of 1970. It has been extended to the Union territory of Dadra and Nagar Haveli by G.S. R. 1639, dt. 3-12-1962, published in Gaz. of India, dt. 8-12-1962, Part II, sec. 3(i), p. 1982, issued undersection 10 of Act 35 of 1961. It now extends to the Union territories of Goa, Daman and Diu and Laccadive, Minicoy and Amindivi Islands by Regulations 12 of 1962 and 8 of 1965, respectively. Act came into force throughout the Union territory of Goa, Daman and Diu on 4-1-1963-See Goa Gaz. 4-1-1963, Sr. I, No. 1, p. 3. The Act has been extended to the Mizo and United Khasi and Jaintia Hills Districts by Assam Act 12 of 1963 (2-5-1963). United Khasi-Jaintia Hills District is a part of Meghalaya now. The Act has been repealed in Kerala and Mysore by Ker. Act 27 of 1961 and Mys. Acts 14 of 1955 and 16 of 1963, respectively.
SECTION 01: SHORT TITLE.
STATE AMENDMENTS.
Andhra Pradesh: In sub-section (2), after the expression "except the territories which, immediately before the 1st November, 1956........B States", add "other than territories specified in sub-section (1) of section 3 of the States Reorganization Act, 1956" (Central Act 37 of 1956).-Andh. Pra. Act 19 of 1956, section 6. Dadra and Nagar Haveli: Sub-section (2) of section I shall be omitted.-See G.S.R. 1639, dt. 3-12-1962, published in Gazette of India, 8-12-1962, Pt. II, sec. 3(i), p. 1982. _ Himachal Pradesh: Omit sub-section (2) of section I Himachal Pradesh. A.L.O., 1948, Cl. 3 and Schedule (25-12-1948). Madhya Pradesh: (i) In subsection (2), after "Part B States", add "other than the Madhya Bharat and Sironj regions of the State of Madhya Pradesh". , (ii)After sub-section (2), insert- "(3) it shall be in force in the whole of Madhya Pradesh".-M. P. Act 23 of 1958, section 3(1) and Schedule, Part A. Maharashtra: In sub-section (2) of section I, add the following Proviso :- "Provided that on the commencement of the Land Improvement Loans and Agriculturists' Loans (Extension and Amendment) Act, 1957, this Act shall also extend to and be in force in, the Hyderabad and Saurashtra areas of the State of Bombay."-Bom. Act 27 of 1958, section 3(l) (l-4-1958), Modifications Manipur: Throughout the Act for the words "State Government" substitute the words
"Chief Commissioner", ,For sub-section (2) of section I, substitute the following: "(2) It shall come into force at once".-S.R. 0. 1965, dt. 1 1-11 -1952, Gazette of India, 15-11-1952, Pt. II, section 3. p. 1667. Orissa: In its application to the State of Orissa, omit sub-section (2) of section 1.-Orissa Act 4 of 1950, section 4 and Schedule (3-3-1950).
SETION 02: ACT 526 OF1871 AND 21 OF 1876 REPEALED.
STATE AMENDMENTS
Dadra and Nagar Haveli: Omit section 2.-G.S.R. 1639, dt. 3-12-1962, Gazette of India, 1962, 8-12-1962. Pt. II, sec. 3(i), p. 1982.
SECTION 03: COLLECTOR DEFINED.
In this Act, "Collector" means the Collector of land revenue of a district or the Deputy Commissioner, or any officer empowered by the [State] Government by name or by virtue of his office to discharge the functions of a Collector under this Act.
State Amendments.
Dadra and Nagar Haveli; Manipur: For "State Government", substitute "Administrator".-See G.S.R. 1639, dated 3-12-1962, Gaz. of Ind., 1962, Pt. II, section 3(i), p. 1982 and S.R.O. 1865, dt. 11-11-1952. Orissa: In section 3, after the words "a district", the words "the District Magistrate" shall be inserted.-Orissa Act 4 of 1950, section 4 and Schedule (3-3-1950). Uttar Pradesh: Delete the words "or the Deputy Commissioner" occurring between the words "of a district" and the words "or any officer".-U. P. Act 42 of 1958, section 3 and Schedule II (19-12-1958).
SECTION 04: PURPOSES FOR WHICH LOAN MAY BE GRANTED UNDER THIS ACT.
STATE AMENDMENTS
Dadra and Nagar Haveli; Manipur: For"StateGovernment",substitute"Admimstrator".-SeeG.S.R. 1639, dt.
3-12-1962, Gaz. of Ind., 1962, Pt. II, sec. 3(i), p. 1982 and S.R.O. 1865, dt. 11-11-1952. Gujarat: Same as that of Maharashtra.-Guj. A.L. (8th Am.) O, 1961. Maharashtra: In sub-section (2), for the words "any work which adds to the letting value of land", substitute the following words. namely :- "In relation to any land, any work which adds to the value of the land and which is suitable thereto as also consistent with the purpose for which it is held".-Bom. Act 27 of 1958, section 3(2) (1-4-1958); Maha. A.L.(Am.)O" 1961.
SECTION 05: MODE OF DEALING WITH APPLICATIONS FOR LOANS.
STATE AMENDMENTS
In its application to the Union territories of Dadra and Nagar Haveli and Manipur, for the words "State Government", substitute the words "the Administrator".-See G.S.R. 1639, dt. 3-12-1962, Gaz. of India, 1962, Pt. II, sec. 3(i), p. 1982 and S.R.O. 1865, dt. 11-11-1952.
SECTION 06: PERIOD OF REPAYMENT OF LOANS.
STATE AMENDMENTS
In its application to the Union territories of Dadra and Nagar Haveli and Manipur, for the words "State Government", substitute the words "the Administrator".-See G.S.R. 1639, dt. 3-12-1962, Gazette of India, 1962, Pt. II, section 3(i), p. 1982 and S.R.O. 1865, dt. 11-11-1952.
SECTION 07: RECOVERY OF LOANS.
STATE AMENDMENTS
Haryana: In sub-section (1) of section 7, after the word "making" insert the words "or recovering" Haryana Act 26 of 1971, sec. 2 (27-8-1971). Tamil Nadu: In the proviso to sub-section (1), after the words "Provided that", insert the words, figures and brackets "subject to ' the provisions of section 28 of the Madras Co-operative Land Mortgage Banks Act, 1934 (Madras Act 10 of 1934) and nib-section (5) of section 32 of the Madras Co-operative Societies Act, 1961 (Madras Act 53of 1961)", - T. N. Act 10 of 1964, section 2 (10-6-1964).
SECTION 08: ORDER GRANTING LOAN CONCLUSIVE ON CERTAIN POINTS
A written order under the hand of an officer empowered to make loans under this Act granting a loan to, or with the consent of, a person mentioned therein, for the purpose of carrying out a work described therein, for the benefit of land specified therein, shall, for the purposes of this Act, be conclusive evidence-
(a) that the work described is an improvement within the meaning of this Act;
(b) that the person mentioned had at the date of the order a right to make such an improvement; and
(c) that the improvement is one benefiting the land specified.
SECTION 09: LIABILITY OF JOINT BORROWERS AS AMONG THEMSELVES.
When a loan is made under this Act to the members of a village community or to any other persons on such terms that all of them 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 of them and by the officer making the order, that statement shall be conclusive evidence of the portion of the amount which as among themselves each of those persons is bound to contribute.
State Amendments
Section 9-A: Madhya Pradesh: After section 9, insert the following section:-
SECTION 9A: PROHIBITION OF MISAPPLICATION OF LOAN UNDER THE ACT
Maharashtra: Vidarbha: Omit section 9-A inserted by C. P. and Berar Act 55 of 1949 in its application to the Vidarbha region of the State of Bombay.-Bom. Act 27 of 1958, section 5 (1-4-1958),
SECTION 10: POWER TO MAKE RULES.
The [State] Government [* * *] may, from time to time, by notification in the[Official Gazette], make rules consistent with this Act to provide for the following matters, namely,-
(a) the manner of making applications for loans;
(b) the officers by whom loans may be granted;
(c) the manner of conducting inquiries relative to applications for loans, and the powers to be exercised by officers conducting those inquiries;
(d) the nature of the security to be taken for the due application and repayment of the money, the rate of interest at which) and the conditions under which, loans may be granted, and the manner and time of granting loans;
(e) the inspection of works for which loans have been granted;
(f)- the installments by which, and the mode in which, loans, the interest to be charged on them and the costs incurred in the making thereof, shall be paid;
(g) the manner of keeping and auditing the accounts of the expenditure of loans and of the payments made in respect of the same; and
(h) all other matters pertaining to the working of the Act.
SECTION 11: EXEMPTION OF IMPROVEMENTS FROM ASSESSMENT TO LAND-REVENUE.
When land is improved with the aid of a loan granted under this Act, the increase in value derived from the improvement shall not be taken into account in revising the assessment of land-revenue on the land: Provided as follows-
(1) where the improvement consists of the reclamation of waste-land, or of the irrigation . of land assessed at unirrigated rates, the increase may be so taken into account after the expiration of such period as may be fixed by rules to be framed by the[State Government];
(2) nothing in this section shall entitle any person to call in question any assessment of land-revenue otherwise than as it might have been called in question if this Act had not been passed.
SECTION 12: CERTAIN POWERS OF STATE GOVERNMENT TO BE EXERCISABLE BY BOARD OF REVENUE OR FINANCIAL COMMISSIONER.
The powers conferred on a [State] Government by sections 4(1), 5(1) and 10 may, in a[State] for which there is a Board of Revenue or a Financial Commissioner, be exercised in the like manner and subject to the like conditions by such Board or Financial Commissioner, as the case may be: Provided that rules made by a Board of Revenue or Financial Commissioner shall be subject to the control of the[State] Government.]
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