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KARNATAKA AGRICULTURAL DEBTORS RELIEF ACT, 1966

KARNATAKA AGRICULTURAL DEBTORS RELIEF ACT, 1966

29 of 1966

An Act to consolidate and amend the law for the relief of agricultural debtors in the State of Karnataka. Whereas, it is expedient to consolidate and amend the law for the relief of agricultural debtors in the State of Karnataka, and for certain other purposes specified herein; Be, it enacted by the Karnataka State Legislature in the Seventeenth Year of the Republic of India as follows :-

CHAPTER 1 Preliminary

Section1 Short title, extent and commencement

(1) This Act may be called the Karnataka Agricultural Debtors Relief Act, 1966.

(2) It extends to the whole of the State of Karnataka.

(3) It shall come into force on such date as the State Government may, by notification, appoint.

Section2 Definitions

In this Act, unless the context otherwise requires.

(1) "Award" means an award made under sub-section (4) of Section 8, or Sections 9, 31 or 32 or as confirmed or modified by the Court in appeal;

(2) "Co-operative Society" means a society registered or deemed to be registered under the Karnataka Co-operative Societies Act, 1959;

(3) "Court" means Court of the Munsiff or the Civil Judge having ordinary jurisdiction in the area where the debtor ordinarily resides, according as the total amount of the debts due from the debtor on the date of the application, as specified therein does not exceed the pecuniary jurisdiction of such Court: Provided that every application shall be filed in the Court of the lower pecuniary jurisdiction competent to try it;

(4) "Debt" means any liability in cash or kind, whether secured or unsecured, due from a debtor, whether payable under a decree or order of any Civil Court or otherwise, and includes mortgage money, the payment of which is secured by the usufructuary mortgage of immoveable property, but does not include arrears of wages, payable in respect of agricultural or manual labour, or any liability for the recovery of which remedy is barred by limitati on;

(5) "Debtor" means.

(a) an individual.

(i) who is indebted;

(ii) who holds land used for agricultural purposes, or has held such land at any time not more than thirty years before 30th January, 1960, which land has been trans- ferred, whether under any instrument or not, and which transfer is in the nature of a mortgage, although not purporting to be so;

(iii) who has been cultivating land personally for the cultivating seasons in the two years immediately preceding the date of the coming into operation of this Act; and

(iv) whose annual income from sources other than agriculture and manual labour does not exceed one-third of his total annual income, or Rs. 1,000 whichever is greater, and whose aggregate annual income from all sources does not exceed Rs. 5,000;

(b) an undivided Hindu family.

(i) which is indebted;

(ii) which holds land used for agricultural purposes or has held such land at any time not more than thirty years before 30th January, 1960, which land has been transferred whether under an instrument or not and which transfer is in the nature of a mortgage, although not purporting to be so;

(iii) which has been cultivating land personally for the cultivating seasons in the two years immediately preceding the date of the coming into operation of this Act; and

(iv) whose annual income from sources other than agriculture and manual labour does not exceed two-fifths of its total annual income, or Rs. 3,000 whichever is greater, and the aggregate of such annual incomes from all sources of the members of which does not exceed Rs. 10,000. Explanation 1. For the purposes of this clause "agriculture" includes horticulture, the raising of crops or garden produce, dairy farming, poultry farming, pig-breeding, stock breeding and grazing; but does not include leasing of land or cutting only of wood. Explanation 2. In the case of.

(a) any person who dies leaving as his heir, a widow or a minor or a person who is subject to physical or mental disability; or

(b) an undivided Hindu family, in which there are no adult coparceners capable of cultivating the land personally, the income derived by such heir or family by the lease of land for an agricultural purpose shall, notwithstanding anything contained in Explanation 1, be deemed to be income from agriculture;

(6) "Financing of crops" means advancing of loans for the raising of crops during the ploughing season or later for ploughing, sowing, harrowing, weeding, harvesting, purchase of seeds, manure, pesticides or for such other purposes as may be prescribed, such loans being repayable during the season when the crops for which loans were advanced are harvested;

(7) "Holder" means a holder as defined in the Karnataka Land Revenue Act, 1964, and includes a holder of land held for the purpose of service useful to Government or village community, which service is actually being performed, but does not include a holder of any land held on behalf of a religious or charitable institution; and the expression "to hold land" shall be construed accordingly; Explanation. A protected tenant, as defined in the Karnataka Land Reforms Act, 1961, shall be deemed to be a holder for the purpose of this clause;

(8) "Notification" means a notification published in the Official Gazette;

(9) "Prescribed" means prescribed by rules made under this Act;

(10) "Repealed Debt Conciliation Act" means.

(a) the Karnataka Debt Conciliation Act, 1937 (Karnataka Act VI of 1937) in the Mysore Area;

(b) the Hyderabad Debt Conciliation Act, 1349-F in the Hyderabad Area;

(d) the Debt Conciliation Act, 1940 (Coorg Act II of 1940) in the Coorg District;

(11) "Scheduled Bank" means a bank included in the Second Sched- ule to the Reserve Bank of India Act, 1934 (Central Act II of 1934);

(12) "Seasonal Finance" means advancing of loans for prescribed purposes such loans being repayable on or before such dates as may be prescribed;

(13) "To cultivate personally" means to cultivate by one's own labour or by the labour of any member of one's family or by hired labour, or by servants on wages payable in cash or kind but not in crop share, under the personal supervision of one's self or any member of one's family; Explanation 1. If a person who is cultivating personally dies, leaving as his heir, a widow or a minor or a person who is subject to physical or mental disability, such heir shall be deemed to cultivate the land personally, notwithstanding the fact that the land is cultivated on behalf of such heir by servants or hired labour or by tenants; Explanation 2. In the case of an undivided Hindu family, the land shall be deemed to have been cultivated personally, if it is cultivated by any member of such family. If there are no adult male coparceners in such family capable of cultivating the land personally, such family shall be deemed to be cultivating the land personally, if the land is cultivated on behalf of such family by servants or hired labour or by tenants; Explanation 3. In the case of a person in the service of the armed forces of the Union, he shall be deemed to cultivate the land personally, notwithstanding the fact that the land is cultivated on his behalf by servants or hired labour or by tenants.

(14) Words and expressions used in this Act, but not defined, shall have the meanings assigned to them in the Code of Civil Procedure, 1908, or the Karnataka Land Revenue Act, 1964.

Section3 Savings

Save as otherwise expressly provided, nothing in this Act shall affect the debts and liabilities of a debtor falling under the following heads, namely.

(i) any revenue or tax payable to Government or any other sum due to it by way of loan or otherwise;

(ii) any tax payable to a local authority or any other sum payable to such authority by way of loan or otherwise;

(iii) any sum due to a co-operative society;

(iv) any sum advanced solely for the purpose of financing of crops or for the purpose of seasonal financing as provided for in this Act;

(v) any sum in respect of which proceedings have been taken under the Hyderabad Jahgirdars Debt Settlement Act, 1952;

(vi) any sum due under a decree or order for maintenance passed by a Competent Court;

(vii) any sum due to a Scheduled Bank; [(vii-a) any sum due to the Karnataka Agro-Industries Corporation Limited;]

(viii) any liability arising out of a breach of trust; and

(ix) any debt due to a woman, where the value of the property owned by her including the principal amount of the debt so due does not exceed six thousand rupees. Explanation. For the purposes of this clause, the house in which the creditor woman lives, or any furniture therein, or her house-hold utensils, wearing apparel, jewellary, or such like personal belongings shall not be regarded as property.

CHAPTER 2 Procedure for Adjustments of Debts

Section4 Application for adjustment of debts

(1) Any debtor ordinarily residing within the State of Karnataka, or his creditor, may make an application within three months from the commencement of this Act, to the Court for adjustment of his debts: Provided that no application under this section shall lie.

(a) from a debtor whose debts have been adjusted on an application under Section 4 of the Bombay Agricultural Debtors Relief Act, 1947, or of the Hyderabad Agricultural Debtors Relief Act, 1956, or in respect of debts which have been scaled down under the Madras Agriculturists Relief Act, 1938;

(b) in respect of any debt due from a debtor which has been extinguished under sub-section (1) of Section 15 of the Bombay Agricultural Debtors Relief Act, 1947, or sub-section (1) of Section 16 of the Hyderabad Agricultural Debtors Relief Act, 1956.

(2) Every application made under sub-section (1) shall be in writing in the prescribed form and shall be signed, verified and presented in the prescribed manner.

(3) Notwithstanding anything contained in Section 3, an application made under this section shall contain the amounts an particulars of all debts specified in that section due by the debtor.

Section5 Every creditor and debtor to file a true and correct statement before Court

(1) Notwithstanding the fact that no application has been filed under Section 4.

(a) every creditor, on being required to do so by notice in writing by any of his debtors, shall, within two month from the date of receipt of such notice, file before the Court a true and correct statement of all his claims against such debtor and shall at the same time send a copy thereof to such debtor; and

(b) every debtor on being required to do so by notice in writing by any of his creditors, shall, within two months from the date of the receipt of such notice, file before the Court a true and correct statement.

(i) of all the debts owed by such debtor;

(ii) whether he holds any land used for agricultural purposes and whether he has been cultivating the land personally;

(iii) of his income from agriculture and from sources other than agriculture in the year preceding the date of the notice; and the debtor shall, at the same time, send a copy of such statement to such creditor: Provided that the Court may, for sufficient cause, extend from time to time the period within which the creditor or the debtor, as the case may be, may file such statement.

(2) Every debtor or creditor giving a notice under sub-section (1) shall at the same time send a copy thereof to the Court.

(3) In awarding the costs of any proceeding in respect of an application made under Section 4, the Court may on being satisfied that the statement required to be filed under sub-section (1), was without sufficient cause not filed within the time specified therein or within the period extended under the proviso to sub-section (1), or incorrectly filed, direct the party in default to bear the whole or any portion of the costs of such proceeding.

Section6 Application by debtor jointly and severally liable

(1) If the payment of a debt due by a debtor is guaranteed by a surety or if debtor is otherwise jointly and severally liable for any debt along with any other person and if the surety or such other person is not a debtor, the debtor may make an application under Section 4 for relief in respect of such debt and the Court may, after consideration of the facts and circumstances of the case, proceed with the adjustment of the debts under this Act, in so far as such applicant is concerned.

(2) Whenever the debts due by a debtor which are guaranteed by a surety are adjusted under sub-section (1), the surety shall be discharged from liability in respect of the debts or portion of the debt of such debtor, which are extinguished under sub-section (1) of Section 15, sub-section (3) of Section 17, sub-section (5) of Section 25, Section 33 or clause (ii) of Section 34; and the surety shall not be entitled to proceed against the debtor in respect of such debts or portion.

Section7 Assignees from non-debtor not entitled to benefit under this Act

No application shall lie under Section 4 for adjustment of any debt due from a debtor to whom such debt has been transferred or assigned after the commencement of the repealed Debt Conciliation Acts in the respective Areas of the State, by any person who is not himself a debtor.

Section8 Application for recording settlement

(1) If any debtor and any or all of his creditors arrive at a settlement in respect of any debts due by the debtor to the creditor, the debtor or any of the creditors may, within thirty days from the date of such settlement .make an application to the Court for recording such settlement.

(2) Every such application shall be in the prescribed form and shall be signed and verified in the prescribed manner.

(3) On receipt of such application, the Court shall, after giving notice to the creditor or the debtor, as the case may be, and after making such enquiry as it thinks fit, if it is satisfied that the settlement arrived at is bona fide and voluntary and is not made with intent to defeat or delay any of the creditors of the debtor, and is in the interest of the debtor, record such settlement and certify the same. Every such settlement so recorded and certified shall be binding upon the parties thereto and shall not, save as otherwise hereinafter provided, be reopened.

(4) After the Court has recorded and certified a settlement under subsection (3), the Court shall call upon the debtor to make a declaration whether there are any other debts due by the debtor which are not included in the settlement. If the debtor makes a declaration that there are no such debts, the Court shall make an award in terms of such settlement.

(5) If the Court is satisfied after recording such settlement, that there are other debts due from the debtor, which are not included in the settlement, the Court shall treat the application made under sub-section (1) as an application for adjustment of debts under Section 4.

Section9 Settlement during pendency of proceedings before Court

Notwithstanding anything contained in the preceding sections, if during the pendency of proceedings before the Court or the Court in appeal, as the case may be, a settlement is arrived at between a debtor and all his creditors and if such Court is satisfied that the settlement has been made by the debtor voluntarily and is for his benefit, such Court may make an award in terms of such settlement.

Section10 Certain settlements to be void

Every settlement of a debt due from a debtor to any creditor, which is not certified by the Court under Section 8 or in terms of which no award has been made under Section 9, shall be void and shall not recognised by any Court for any purpose whats oever.

Section11 Application under Section 4 or Section 8 to be made only in respect of debtor whose debts are not more than Rs. 20,000

No application un- der Section 4 or Section 8 shall be entertained by the Court on behalf of or in respect of any debtor, unless the total amount of debts due from him on the date of the application is not more than twenty thousand rupees.

Section12 Withdrawal of applications

An application for adjustment of debts under Section 4 or an application for a settlement under Section 8 shall not be withdrawn without the leave of the Court.

Section13 Consolidation of applications

Where two or more applications for adjustment of debts under Section 4 are presented by or against the same debtor, all such applications shall be consolidated. Where such separate applications are presented by or against joint debtors, all such applications shall be heard together.

Section14 Service of notice on debtors, and creditors to submit statement of debts

On receipt of an application for adjustment of debts, the Court shall.

(a) give notice to the debtor (unless the debtor is himself an appli- cant) and to every creditor (other than the creditor who is him- self an applicant), whose name and address are given in the application; and

(b) publish a general notice requiring the debtor and all creditors to submit a statement in the prescribed form within one month from the date of the service of the notice or the publication of the general notice, whichever is later: Provided that if the Court is satisfied that the debtor or any creditor is, for good and sufficient cause, unable to comply with the notice, within the time specified therein it may extend the period for the submission of the statement.

Section15 Debts in respect of which no application for adjustment or settlement is made to be void

(1) Every debt due from a debtor in respect of which no application has been made under Section 4 within the period specified in the said Section 4, or in respect of which no application for recording a settlement is made under Section 8 within the period specified in the said Section 8, or in respect of which an application made to the Court is withdrawn under Section 12 and no fresh application is made under Section4, and every debt due from such debtor in respect of which a statement is not submitted to the Court by the creditor in compliance with the provisions of Section 14, shall be extinguished.

(2) Nothing in this section shall apply to any debt due from any person who has by his declaration, act or omission intentionally caused or permitted his creditor to believe that he is not a debtor for the purposes of this Act, or that no application under Section 4 can be entertained in respect of any debt owed by such person to such creditor by reason of the provisions of Section 11.

Section16 Duties of debtors and creditors

(1) Every debtor by or against whom an application is made under Section 4 or who is a party to an application made under Section 8 shall produce all books of accounts, shall give such inventories of his property and such lists of his creditors and debtors and of the debt due from and to him, submit to such examination in respect of his property or his creditors, attend at such time before the Court and generally do all such things as may be required by the Court or as may be prescribed.

(2) It shall be the duty of every creditor to produce such books of accounts, to submit to such examination, to supply such information in respect of the debt due to him by the debtor and the securities held by him as may be required by the Court or as may be prescribed.

Section17 Preliminary issues

(1) On the date fixed for the hearing of an application made under Section 4, the Court shall decide the following points as preliminary issues.

(a) whether the person for the adjustment of whose debts the application has been made is a debtor;

(b) whether the total amount of debts due from such person on the date of the application exceeds twenty thousand rupees.

(2) If the Court finds that such person is not a debtor or that the total amount of debts due from such person on the date of the application is more than twenty thousand rupees, the Court shall dismiss the application forthwith: Provided that before the application is so dismissed, the creditors or any one of them may remit any specified portion of their claim so as to reduce the total amount of the debts of all creditors due from such person on the date of the application to a sum not exceeding twenty thousand rupees. In such a case, the Court shall not dismiss the application but shall proceed further with the same.

(3) The portion of the debts in respect of which the claim is remitted under sub-section (2) shall be extinguished. Explanation. For the purposes of this section, the expression "the date of the application" shall mean the date of an application which has been made within the period prescribed under Section 4 and where there are two or more applications made for adjustment of debts of the same debtor, the date of the last of such applications.

Section18 Transfer of pending suits, appeals, applications and proceedings to the Court

(1) All suits, appeals, applications for execution and proceedings in respect of any debt pending in any Civil or Revenue Court shall, when they involve the questions whether the person from whom such debt is due is a debtor, and whether the total amount of debts due from him exceeds twenty thousand rupees, be transferred to the Court.

(2) When an application for adjustment of debts made to a Court under Section 4 or a statement submitted to a Court under Section 15 includes a debt in respect of which a suit, appeal, application for execution or proceeding liable to be transferred under sub-section (1) is pending before a Civil or Revenue Court, the Court shall give notice thereof to such Civil or Revenue Court. On receipt of such notice, such Court shall transfer the suit, appeal, application or proceeding, as the case may be, to the Court.

(3) When any suit, appeal, application or proceeding is transferred to the Court under sub-section (1) or sub-section (2), the Court shall proceed as if the application under Section 4 had been made to it.

(4) If the Court, to which any suit appeal, application or proceeding is transferred under sub-section (1) or sub-section (2) decides the preliminary issue mentioned in clause (a) of sub-section (1) of Section 17 in the negative or that mentioned in clause (b) of the said sub-section (1) in the affirmative, it shall re-transfer the suit, appeal, application or proceeding to the Civil or Revenue Court from which it had been transferred to itself after the disposal and subject to the result of the appeal, where an appeal is filed, and after the expiry of the period prescribed for an appeal, where no appeal is filed.

(5) When any suit, appeal, application or proceeding is re-transferred to the Civil or Revenue Court under sub-section (4), the said Court shall proceed with the same.

(6) When such suit, appeal, application or proceeding involves the determination of any issue entirely unconnected with adjustment of debts, the transfer of such suit, appeal, application or proceeding under this section shall not empower the Court to determine the said issue and the determination of such issue shall be made as if the transfer of the suit, appeal, application or proceeding was not made under this section.

(7) When any question arises regarding the validity of the transfer or re-transfer under this section of any suit, appeal, application or proceeding or if any question arises whether any issue is or is not entirely unconnected with the adjustment of debts, the Court before which such question arises, if it is not the District Court may refer the question for the decision of the District Court. If such question arises before the District Court, the District Court itself shall decide the same. The decision of the District Court in either case shall be final.

Section19 Taking of accounts

If the Court finds the person making an application under Section 4 or the person against whom an application is made under the said Section 4 to be a person.

(a) who is a debtor; and

(b) the total amount of debts due from whom on the date of the application is not more than twenty thousand rupees, the Court shall proceed to take accounts in the manner hereinafter provided.

Section20 Examination of creditor and debtor

In an application for the adjustment of debts, if the amount of the creditors' claim is disputed, the Court shall, when taking accounts, examine both the creditor and the debtor as witnesses, unless, for reasons to be recorded, the Court deems it not necessary so to do.

Section21 Mode of taking accounts

Notwithstanding any agreement between the parties or the persons, if any, through whom they claim as to allowing compound interest or setting off the profits of mortgaged property without an account in lieu of interest, or otherwise determining the manner of taking the account, and notwithstanding any statement or settlement of account, or any contract purporting to close previous dealings and create a new obligation, the Court shall enquire into the history and merits of the case and take account between the parties from the commencement of the transactions subsisting between the parties and the persons, if any, from whom they claim, out of which the claim has arisen and determine the amount due to each of the creditors at the date of the application made under Section 4, according to the following rules, namely.

(1)

(a) separate accounts of principal and interest shall be taken;

(b) in the account of principal, there shall be debited to the debtor only such money as may from time to time have been actually received by him or on his account from the creditor, and the price of goods, if any, sold to him by the creditor;

(c) in the accounts of principal and interest, there shall also be debited the amounts, if any, respectively due for principal (including costs) and interest under any decree or order passed by a Competent Court in respect of any debt: Provided that if such decree or order does not specify the amount of principal and interest separately, or does not contain any material for determining the same, two-thirds and one-third of the amount awarded by such decree or order shall, for the purposes of this clause be deemed to be the amount awarded on account of principal (including costs) and interest, respectively.

(2) In the case of transactions which commenced before the 1st January, 1941, the Court shall take the account up to the date of the institution of the application and in the account of interest there shall be debited to the debtor, simple interest on the balance of principal for the time being outstanding at the rate agreed upon between the parties or at the rate allowed under any decree passed between the parries or at the rate not exceeding twelve per cent, per annum, whichever is the lowest. The amount found due in respect of principal as well as in respect of interest, shall, each separately, be reduced by forty per cent notwithstanding that a decree or order of a Civil Court was passed in respect of any such amount or portion thereof. The amounts so reduced shall be taken to represent the amounts due in respect of principal and interest on the date of the institution of the application.

(3) In the case of transactions which commenced on or after the 1st January, 1941, but before the 1st January, 1950, in the account of interest there shall be debited to the debtor, simple interest on the balance of principal for the time being outstanding at the rate agreed upon between the parties, or at the rate allowed under any decree passed between the parties or at a rate not exceeding nine per cent, per annum, whichever is the lowest. The amount found due on the date of the institution of the application in respect of principal, as well as in respect of interest, shall, each separately, be reduced by thirty per cent, notwithstanding that a decree or order of a Civil Court was passed in respect of any such amount or portion thereof. The amounts so reduced shall be taken to represent the amount due in respect of principal and interest on the date of the institution of the application.

(4) In the case of transactions which commenced on or after 1st January, 1950, in the account of interest, there shall be debited to the debtor simple interest on the balance of principal for the time being outstanding at the rate agreed upon between the parties or at the rate allowed under any decree passed between the parties, or at a rate not exceeding six per cent per annum, whichever is the lowest.

(5) All money paid by or on account of the debtor to the creditor or on his account and all profits, service or other advantages of every description received by the creditor in the course of the transactions (estimated, if necessary, at such money value as the Court in its discretion may determine) shall be credited first in the account of interest and when any payment is more than sufficient to discharge the balance of interest due at the rate specified in rule (2), (3) or (4) as the case may be, the residue of such payment shall be credited to the debtor in the account of principal.

(6) The accounts of principal and interest shall be made up to the date of the institution of the application, and the aggregate of the balance, if any, appearing due on both such amounts against the debtor on that date shall be deemed to be the amount due on that date, except when the balance appearing due on the interest-account exceeds that appearing due on the principal account, in which case, double the latter balance shall be deemed to be the amount then due: Provided that where the transaction between the parties have commenced more than thirty years before 30th January, 1950 any settlement of accounts which has been last arrived at between the parties before the said period of thirty years and which is in writing and bears the signature of the debtor or the person through whom the liability is derived shall be accepted as binding between the parties and no enquiry into the history and merits of the case shall be made prior to the date of such settlement.

Section22 In certain cases rent may be charged in lieu of profits

Where any mortgaged property is in the possession of the mortgagee or his tenants other than the mortgagor and the Court is unable to determine what profits have actually been received, it may fix a fair rent for the property and charge to the mortgagee such rent as profits for the purpose of Section 21: Provided that if it be proved that in any year there was any suspension or remission of rent or land revenue of such land under any law, an abatement of the whole or part of such amount may be allowed for the year.

Section23 Power of Court to declare transfer purporting to be a sale to be in the nature of mortgage

(1) Notwithstanding any thing to the contrary contained in any law, custom or contract, whenever it is alleged during the course of the hearing of an application made under Section 4, that any transfer of land by a person whose debts are being adjusted under this Act or any other person through whom he inherited the land was a transfer in the nature of a mortgage, the Court shall declare the transfer to be a mortgage, if the Court is satisfied that the circumstances connected with that transfer showed it to be in the nature of a mortgage.

(2) Any agricultural labourer may make an application before the expiry of one year after the commencement of this Act, to the Court that any transfer of land by him or any other person, through whom he inherited it was a transfer in the nature of a mortgage. On hearing the application, the Court shall, notwithstanding anything to the contrary contained in any law, custom or contract declare the transfer to be a mortgage, if it is satisfied that the circumstances connected with the transfer showed it to be in the nature of a mortgage. When the Court makes any such declaration, the applicant shall, notwithstanding anything contained in the definition of "debtor" in clause (5) of Section 2, be deemed to be a debtor for the purposes of this Act and the Court shall proceed as if an application under Section 4 had been made to it. Explanation. An 'agricultural labourer' means a person who earns his livelihood by engaging himself in agricultural operations on agricultural land, either as a tenant or a servant or a hired labourer.

Section24 Provisions of Section 23 not to apply to certain transfers and transferees

Nothing in Section 23 shall apply to.

(i) a transfer which has been finally adjudged to be a transfer other than a mortgage by a decree of a Court of competent jurisdiction or by a Board established under the repealed Debt Conciliation Act; and

(ii) any bona fide transferee for value without notice of the real nature of such transfer or his representative, where such transferee or representative holds under a registered deed executed on or before the commencement of the repealed Debt Conciliation Act.

Section25 Notice to Deputy Commissioner, Registrar of Co-operative Societies, Local Authorities and others

(1) On receipt of an application for adjustment of debts, the Court shall give notice to the Deputy Commissioner, requiring him to state to the Court within such time as may be fixed by it, the amount of the debt due by the debtor to Government.

(2) The Court shall also give similar notice to any Local Authority, Cooperative Society or Scheduled Bank, to which any debt may be due by the debtor and also to any person who is entitled to maintenance from the debtor under a decree or order passed by a Competent Court. In the case of any debt due to a Co-operative Society, the Court shall also give notice to the Registrar of Co-operative Societies or to such officer as the Registrar may nominate in this behalf.

(3) On receipt of such notice, the Deputy Commissioner, the Local Authority, the Co-operative Society or the Scheduled Bank or the person entitled to maintenance, as the case may be, shall, within such time, as may be fixed by the Court, from time to time, submit a statement to the Court showing the total amount of the debt due by the debtor, as also any recurring liability against such debtor, in respect of the liability for maintenance under the decree or order.

(4) The Deputy Commissioner, the Co-operative Society and the Scheduled Bank shall also furnish a statement to the Court showing the amount of remission which the State Government, the Co-operative Society or the Scheduled Bank, as the case may be, is willing to give in respect of the debt. ) The portion of any debt remitted under sub-section (4), and unless Couri otherwise directs any debt or portion thereof in respect of which :atement is submitted under sub-section (3), shall be extinguished.

Section26 Court's duty to determine particulars, value, etc

., of property. Af- aking accounts under Section 21, the Court shall, in the manner herein- r provided, determine.

(i) the particulars of the property belonging to the debtor;

(ii) the value of the said property;

(iii) the particulars of property and encumbrances on the said property; and

(iv) the paying capacity of the debtor.

Section27 Fraudulent alienations or encumbrances void

(1) If, in the course f the hearing of an application made under Section 4, the Court finds that ne debtor has made an alienation of property or created any incumbrance hereof with intent to defeat or delay any of his creditors, the Court shall, by notice, summon the debtor and the person in whose favour the alienation or incumbrance is made or created, to appear before it on a date to be specified in the notice.

(2) On the day specified in the notice or such other day to which the hearing may be adjourned, the Court shall hear the parties and record evidence as may be produced and if it is satisfied that the alienation was made or the incumbrance was created with intent to defeat or delay any of the creditors of the debtor, the Court shall declare the alienation or incumbrance to be void.

(3) Nothing in this section shall impair the rights of an alienee or the holder of an encumbrance in good faith and for valuable consideration.

Section28 Value of property of debtor to be determined by Court in prescribed manner

(1) Subject to the provisions of sub-sections (2), (3) and (4), the value of the property and other assets of a debtor for purposes of ascertaining the paying capacity of the debtor under Section 29, shall be determined by the Court in the prescribed manner.

(2) The property or assets which are exempt from attachment in execution of a decree of a Civil Court under the Code of Civil Procedure, 1908, shall not be taken into account.

(3) The amount of the debts mentioned in Section 3 shall be deducted.

(4) The market value of the lands, which, under any law for the time being in force, are not transferable or alienable, except with the previous sanction of the Deputy Commissioner or the State Government, shall be calculated in such manner as may be prescribed.

Section29 Paying capacity

The paying capacity of the debtor, shall for the purpose of this Act, be deemed to be sixty per cent of the value of all the property of the debtor: Provided that, when any portion of such property yields income but the market value of such portion cannot be determined, the value of such portion shall be the amount of the income capitalised at six per cent per annum.

Section30 Debts payable by debtors to be scaled down

(1) Notwithstanding any law, custom, contract, award or decree of Court to the contrary, the amounts found due under Section 21 from a debtor, shall be further scaled down in the manner hereinafter provided.

(2) If all the debts found due by a debtor after taking accounts under Section 21 are unsecured, such debts shall be further scale down pro rata to the paying capacity of the debtor.

(3) If all the debts found due by a debtor after taking accounts under Section 21 are secured debts, and the total amount of such debts is more than sixty per cent of the value of the property belonging to the debtor, such debts shall be further scaled down pro rata to the paying capacity of the debtor.

(4) If the debts found due by a debtor after taking accounts under Section 21 are both secured and unsecured and if the total amount of secured debts is more than sixty per cent of the value of the property, on which such debts are secured, the secured debts shall be further scaled down pro rata to sixty per cent of the value of the property on which such debts are secured and the unsecured debts shall be further scaled down pro rata to sixty per cent of the value of the other property belonging to the debtor over which no debts are secured.

Section31 Award

(1) After determining the amount of debts scaled down in the manner provided in Section 30, the Court shall, save as otherwise provided in Section 32, make an award.

(2) The award shall be in the prescribed form and shall be drawn up subject to the following provisions.

(i) the amount of the secured debts scaled down shall be charged on the properties on which they may have been secured;

(ii) subject to clause (i), the amount of unsecured debts shall be charged on all the properties of the debtor unless all the creditors declare in writing that the unsecured debts due may not be charged on any of the properties of the debtor;

(iii) in fixing the priority in which debts shall be paid, the following order shall be followed.

(a) debts due to Government, which are charged on the immove- able property belonging to the debtor or which are recoverable as the current year's land revenue;

(b) debts due to local authorities, which are charged on the im- moveable property belonging to the debtor or which are recoverable as the current year's dues;

(d) secured debts in order of priority;

(e) debts due to Government, local authorities and other bodies including Co-operative Societies, and recoverable as arrears of land revenue;

(f) other debts due to co-operative societies;

(g) unsecured debts: Provided that in the case of unsecured debts they shall be paid pro rata.

(iv) the total annual instalments shall not exceed twelve: Provided that in fixing the amount of instalments in which the debts shall be paid the Court shall ascertain the net annual income of the debtor and the annual installment payable by the debtor shall not exceed his net annual income. Explanation. For purposes of this clause, the net annual income of the debtor shall mean the balance of his annual income after deducting.

(a) such sum as may be considered necessary for the payment of the liability, if any, imposed on the debtor under a decree or order for maintenance passed by a Competent Court;

(b) such sum as may be considered necessary for the maintenance of the debtor and his dependents; and

(c) the sum required by the debtor to pay the assessment and taxes in respect of current year to Government and local authorities, and to pay off loans borrowed for the purpose of seasonal finance under this Act.

(v) the Court may pass an order for the delivery of possession of any property and to account for and pay the mesne profits of such property till delivery, notwithstanding any law or contract to the contrary;

(vi) the rate of interest shall not exceed six per cent per annum or such less rate as may be notified in this behalf by the State Government or the rate agreed upon between the parties when the debt was originally incurred or the rate allowed by the decree in respect of such debt whichever is the lowest.

Section32 Court to prepare scheme for adjustment of debts through Land Development Bank

(1) Where the amount of debts of the debtor as scaled down under Section 30 exceeds half the value of the debtor's immovable property, as determined under Section 26, the Court shall intimate to the creditors the amount of the said debts of the debtor and the said value of the debtor's immoveable property and call upon them to state in writing within a specified period, not exceeding one month, whether they agree to the further scaling down of the said debts so as to reduce them to a sum not exceeding half the said value of the immoveable property of the debtor. If a majority in number and three-fourths in value of all the creditors agree to the further scaling down of the debts, the Court shall make an order directing the debtor to pay the amount of such debts so agreed upon within a period of one month from the date of the order

(2) Unless the debtor pays the amount of such debts within a period of one month from the date of the order or such extended period not exceeding one month as the Court may allow and produces the creditors receipts therefor, the Court shall prepare a scheme embodying the terms of an award to be passed under this section for adjustment of the debts and shall send the scheme to the primary Land Development Bank situated in the local area and if there is no such primary Land Development Bank in that local area, to the Karnataka Central Co-operative Land Development Bank, for acceptance within a period of two months from the date of receipt by it of the scheme. If the primary Land Development Bank or the Karnataka Central Co-operative Land Development Bank, as the case may be, agrees to accept the scheme, or does not inform the Court within the period of the said two months'that it does not agree to accept the scheme, the Court shall make an award in the prescribed form directing that the Land Development Bank concerned shall pay the creditors in cash the debt as finally scaled down or if the creditors so desire, in bonds issued by the Karnataka Central Co-operative Land Development Bank, such bonds being guaranteed by the State Government, for such amount in full satisfaction of all the debts due to them from the debtor. The Court shall further direct that such amount shall be charged on all the immoveable properties of the debtor and such charge shall be deemed to be a mortgage executed in favour of the Land Development Bank.

(3) The Bank shall be entitled to recover the amount due to it from the debtor in such annual instalments as may be fixed by the Court, having regard to the circumstances of the debtor and the bye-laws of the Bank. The amount of principal shall carry, and be recoverable together with interest at such rate not exceeding nine per cent per annum, as the State Government may notify in this behalf from time to time.

(4) All sums due under an award made in favour of the Bank under this section shall, without prejudice to any other mode of recovery allowable by law, be recoverable as arrears of land revenue: Provided that any application for the recovery of such sums as arrears of land revenue shall be made to the Deputy Commissioner and shall be accompanied by a certificate signed by the Court.

Section33 No recovery of amounts in excess of debts scaled down

The amount of debts scaled down under Section 30 or further scaled down under Section 32 shall, for purposes of this Act, be the amount due by the debtor in respect of the said debts and the portion of the debts in excess of this amount shall be extinguished.

Section34 Debts not to be scaled down in case of collusion

If the Court making an award under Section 31 is at any stage of the proceeding satisfied.

(i) that the debtor had in collusion with any creditor furnished in such proceeding, incorrect information in respect of the debts due by him to such creditor with a view to defeat the lawful claims of any other creditor, the Court may refuse to scale down any of the debts of such debtor in the manner provided in Section 30 and may make an award for the full amount of the debts due from such debtor;

(ii) that any claim by any creditor in such proceeding had been put forward in collusion between the debtor and such creditor with a view to defeat the lawful claims of any other creditor, the Court shall order that the debt due by the debtor to such creditor shall be extinguished and such debt shall not be recoverable.

Section35 Ex parte proceedings if any party does not appear

(1) Notwithstanding that the person for the adjustment of whose debts and application has been made under Section 4 or any of his creditors does not appear on the date fixed for the hearing of the application or on any date to which it may be adjourned, the Court shall proceed ex parte to hear the application, decide the preliminary issues and if necessary, make the award, on the evidence available.

(2) When an application made under Section 4 is heard and disposed of ex parte under sub-section (1), the decision on the preliminary issues or the award shall not, except for sufficient reasons, be reopened merely on the ground that any of the parties thereto did not appear at the hearing.

Section36 Reopening of award and adjustment of debts

If after an award is made under Section 31, the Court finds on an application made to it by any party or otherwise, that the debtor has either property which was not disclosed to the Court when the award was made, or that any property included in the award did not belong to the debtor, the Court may, notwithstanding anything contained in this Act, reopen the award, and readjust the debts in accordance with the provisions of this Act: Provided that where the Court is satisfied that the non-disclosure of such property was in consequence of any fraud on the part of the debtor, the Court in revising the award shall not give the debtor the benefit of Section 30.

Section37 Award to be registered

(1) Every award made under this Act, if it is in respect of debts charged on the properties of the debtor shall, on payment of the Court fee payable under Section 44, be registered in the manner provided in Chapter III.

(2) The Court fee on the award shall be paid by the party ordered by the Court to bear the costs: Provided that any creditor who is not ordered to bear the costs may pay such Court fee. Such creditor shall be entitled to recover the amount of Court fee paid by him from the debtor with the first installment payable to him under the award: Provided further that no Court fee shall be payable by a co-operative society.

Section38 Award how executed

The award shall be executed as follows.

(i) If the debtor makes default in the payment of any installment due under the award to any creditor, such creditor may apply in the prescribed form to the Court for execution of the award.

(ii) If the Court on receipt of such application is satisfied that the debtor has made default in the payment of the installment, the Court shall execute the award as if it were a decree passed by it: Provided that nothing in clauses (i) and (ii) shall affect the right of Government, a local authority or a co-operative society to have recourse to any mode of recovery allowable by any law for the time being in force.

(iii) If the Court has passed an order for the delivery of possession of any property under clause (v) of sub-section (2) of Section 31, such order shall on application be executed by the Court as if it were a decree passed by it.

Section39 Postponement of payment of instalments in case of remission, etc

(1) Whenever from any cause the payment of one half or more of the land revenue payable to the State Government is suspended or remitted, the payment of the whole of the installment due for that year and the full amount of the installment due for each subsequent year under an award made under Sections 8,9,31 or 32, shall be postponed for one year.

(2) Whenever from any cause the payment of any portion less than one half of the land revenue payable to the State Government is suspended or remitted, one half of the amount of installment for that year and the full amount of the installment due for each subsequent year under an award made under Sections 8,9,31 or 32 shall be postponed for one year.

Section40 No alienation by debtor before discharge of debts to be valid

Notwithstanding any law or contract, but subject to the provisions of Section 41 and Section 62 no alienation of any property belonging to a debtor who is a party to any proceedings under this Act, or an award registered under this Act, made by him before all his debts are discharged shall be valid, unless it is made with the previous sanction of the Court.

Section41 Court may order sale of debtor's property in liquidation of his debt

If the Court or the Court hearing an appeal against the award, is at any time satisfied that it is in the interest of a debtor that any part of his property should be sold in liquidation of his debt or part thereof, such Court may permit the debtor to sell such part of the property for such purpose within a specified period. If the debtor fails so to sell it, such Court may order an officer of the Court to sell the same. The property ordered to be sold under this section shall be sold by such officer in the manner prescribed: Provided that the part of the property ordered to be sold under this section shall not exceed the part liable to be sold under sub-section (3) of Section 54.

Section42 Legal Practitioners excluded from appearance

Except in proceedings under Sections 23, 27 and 28, no legal practitioner shall be entitled to appear on behalf of any party in any proceeding before the Court or the Court hearing an appeal under this Act: Provided that such Court in the interest of justice and for reasons to be recorded in writing may allow the parties to be represented at their cost by a legal practitioner: Provided further that the fees of such legal practitioner shall not be allowed as part of the costs in any proceeding under this Act: Provided also that if an officer of Government is appointed or declared by a competent Court or is authorised under any law for the time being in force as a guardian, administrator or manager of the property of a person who is under a legal disability or is incompetent or unable to manage or to act, such officer shall be entitled to appear through a representative authorised by him in writing in this behalf in any proceedings before the Court or the Court hearing the appeal. Such representative may also submit any application and other wise act on behalf of the officer in any such proceedings.

Section43 Appeals

Notwithstanding anything contained in any other law.

(1) an appeal shall lie.

(a) from every order passed under sub-section (3) of Section 8;

(b) from every order passed under Section 17;

(d) from every order passed under Section 27;

(e) from every order passed under sub-section (2) of Section 35;

(f) from every award made under this Act other than an award made in terms of settlement under sub-section (4) of Section 8, or under Section 9 or an award made under Section 32 before the making of which the creditors' agreement has been obtained under sub-section (1) thereof or an award before the making of which neither the debtor nor any of the creditors produced evidence to enable the Court to determine the amount of debt due from the debtor;

(g) from an order made under sub-section (1) or (2) of Section 54, adjudicating the debtor an insolvent, provided that no appeal shall lie from such order, except on the ground that the insolvent has failed to disclose all the material facts relating to his assets and liabilities;

(2) an appeal from the Court shall lie to the Court of the Civil Judge unless the Court is the Court of the Civil Judge, when an appeal shall lie to the District Court. The appeal shall be made within sixty days from the date of the order or award as the case may be;

(3) no second appeal shall lie against any decision, order or award of the Court under this Act.

Section44 Court Fees

(1) Notwithstanding anything contained in the Karnataka Court Fees and Suits Valuation Act, 1958, Court fees payable in respect of proceedings under this Act shall be at the following rates.

(i) On an application under sub-section Rupee one. (1) of Section 4 or Section 8 or an award under sub-section (4) of Section 8 or Section 9;

(ii) On an award other than an award Rupee one for every hundred rupees specified in clause (i); or part thereof, of the amount of the award, subject to a maximum of fifty rupees.

(iii) On an appeal against a decision of the Rupees two. Court under sub-section (3) of Section 8 or sub-section (2) of Section 17;

(iv) On an appeal other than an appeal Rupee one for every hundred rupees specified in clause (iii); or part thereof, of the amount involved subject to a maximum of rupees fifty.

(2) Notwithstanding anything contained in any law, the Court fee payable in respect of proceedings under this Act shall be a first charge on the property of the party ordered to pay the costs and shall be recoverable in such manner as may be prescribed.

Section45 Notice how served

Any notice required to be served under this Act shall be served in the manner provided in the Code of Civil Procedure, 1908, until rules are made in that behalf under this Act, when it shall be served in such manner as may be prescribed.

Section46 Provisions of Civil Procedure Code to apply to proceedings

Save as otherwise expressly provided in this Act, the provisions of the Code of Civil Procedure, 1908, shall apply to all proceedings under this chapter: Provided that the Court may in an appropriate case and on such terms as may appear to it to be just, exercise its powers to add or strike out parties under Rule 10 of Order I of the said Code in any proceeding pending before it under Section 4 or Section 23, notwithstanding the fact that such addition or striking out of parties is to be made after the period specified in Section 4 or Section 23, as the case may be, has elapsed.

CHAPTER 3 Registration of Awards

Section47 Debt Adjustment Register and Index

In all Registration Offices, a book called the "Register of Debt Adjustment Awards" and an index relating thereto shall be kept. The Book and Index shall be kept in such form and shall contain such particulars as may be prescribed.

Section48 Court to send Awards and Memorandum to Registrars and Sub- Registrars

Where an award is required to be registered under Section 37, it shall be the duty of the Court making an award to send to the Sub-Registrar of the Sub-District in which the property which is the subject matter of the award or any part of such property is situated, or if there is no Sub-Registrar for the area, to the Registrar of the District in which the property or its part is situated, a certified copy of the award, after the Court fee has been paid thereon in accordance with Section 44, together with a Memorandum containing such particulars as may be prescribed.

Section49 Notice of appeals to Registrars

If a party files an appeal against an award under Section 43 and if such award has been registered under Section 37, it shall be the duty of the Court in which the appeal is filed, to send to the Sub-Registrar or the Registrar to whom a certified copy of the award has been sent under Section 48, a notice regarding the institution of the appeal.

Section50 Registration

After the expiry of the period provided for an appeal against an award, if no appeal is filed or if an appeal is filed, after the disposal of the said appeal, the Sub-Registrar or the Registrar, as the case may be, shall register the award in the Register of Debt Adjustment Awards and shall also enter particulars in the Index kept under Section 47.

Section51 Registration of awards under the repealed Debt Conciliation Act

All awards made under the repealed Debt Conciliation Act, whether registered before the commencement of this Act under the provisions of the said Act or not, shall be registered under this Chapter: Provided that, notwithstanding anything contained in Section 46 no additional Court fee shall be paid on such awards under the said section.

Section52 Notice of awards

Any person acquiring any property or any part thereof, or any share or interest in, the property of a debtor, for adjustment of whose debts an award has been made, and registered, shall be deemed to have notice of the award as from the date of the registration under this Chapter.

Section53 Application of the Indian Registration Act

Except as herein provided, the provisions of the Indian Registration Act, 1908, shall mutatis mutandis apply to the registration of awards, and the words and expressions used in this Chapter, but not defined in this Act, shall have the meanings assigned to them in the Indian Registration Act, 1908.

CHAPTER 4 Insolvency Proceedings

Section54 Court to declare debtor insolvent in certain circumstances

(1) If, at any stage of the proceedings under Chapter II, the Court finds that the income of the debtor and his immoveable property are not sufficient to allow his debts to be liquidated by annual payments not exceeding twelve in number the Court shall make an order adjudicating the debtor an insolvent.

(2) If, at any time after the expiration of two years from the date of an award, the debtor satisfies the Court that there is no reasonable probability of his being in a position to pay the remaining amount of instalments fixed under the award, the Court may, notwithstanding anything contained in this Act, after giving notice to the creditors, modify the terms of the award and reduce the amount of the instalments as it may think fit, provided that the total annual instalments in which the balance of the debts shall be paid in such instalments shall not exceed twenty, or the Court may make an order adjudicating the debtor an insolvent.

(3) After the debtor has been adjudicated an insolvent, the Court shall direct that such portion of the property of the debtor, other than the property of such debtor exempt from attachment and sale under Section 60 of the Code of Civil Procedure, 1908 (excluding such portion ther of as the State Government shall from time to time notify as the minimum necessary for the maintenance of the debtor and his dependents) as may be required to liquidate the debts of the debtor, shall immediately be sold free of all encumbrances in liquidation of all debts outstanding against such debtor.

Section55 Procedure in insolvency proceedings

An order of adjudication made under sub-section (1) or (2) of Section 54 shall have the force of an order made by a Competent Court in the exercise of its powers under Section 27 of the Provincial Insolvency Act, 1920.

Section56 Distribution of assets of insolvent

The proceeds realised by the sale of the property of the insolvent under Section 54 shall be distributed in the order of priority specified in clause(iii) of sub-section (2) of Section 31.

Section57 Bar to application in insolvency in any other Courts

No application or proceeding in regard to the insolvency of a debtor shall be dealt with by any other Court.

Section58 Appeals barred

Save as provided by sub-clause (g) of clause (1) of Section 43, no appeal shall lie from an order passed under this Chapter.

CHAPTER 5 Miscellaneous

Section59 Bar of civil suits or proceedings

Except as otherwise provided by this Act, and notwithstanding anything contained in any other law, no Civil Court shall entertain or proceed with any suit or proceeding in respect of.

(i) any matter pending before the Court under this Act; or

(ii) the validity of any procedure or the legality of any award, order or decision of the Court or of the Board established under the repealed Debt Conciliation Act; or

(iii) the recovery of any debt made payable under such award.

Section60 Period of proceedings before Courts under this Act to be excluded

In computing the period of limitation for the institution of any suit or proceeding in respect of any debt due from any person who is held not to be a debtor by the Court or the Court in appeal or an application relating to which has been dismissed by the Court or the Court in appeal, the period during which the proceedings in respect of such debt were prosecuted before the Court or the Court in appeal shall be excluded.

Section61 Power of Government to authorise any person to advance loans to debtors

(1) The State Government or any officer empowered by it may, by notification, authorise in any local area any person to advance loans for financing of crops or seasonal finance to debtors, who are parties to any proceedings under this Act or in respect of whose debts an adjustment has been made under this Act.

(2) Such authority shall be granted on such conditions as may be prescribed.

Section62 Alienation of standing crops, etc

before repayment of loans prohibited.

(1) No person, who is or was a party to any proceedings or award under this Act, and who is indebted to any person authorised to advance loans under Section 61 of this Act on account of any loan advanced to him for the financing of the crops or seasonal finance under this Act, shall hypothecate or sell the standing crops or the produce of his land without the previous permission of the person until such loan has been repaid in full.

(2) Any person, who hypothecates or sells the standing crops or the produce of his land in contravention of sub-section (1), shall, on conviction, be punished with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees.

(3) No Criminal Court shall take cognizance of any offence under this section, except on the complaint in writing of the Court before which the proceedings were held or which made the award.

Section63 Rules

(1) The State Government may, by notification and subject to the condition of previous publication, from time to time, make rules for carrying into effect the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing provision, such rules may be made for all or any of the following purposes, namely.

(a) the purposes for which loans may be advanced under clause (12) of Section 2;

(b) the form of application under sub-section (2) of Section 4 and the manner of signing, verification and presentation thereof;

(c) the form of application and the manner of signing and verification thereof under sub-section (2) and the manner of giving notice under sub-section (3) of Section 8;

(d) the manner of giving notice and publication of general notice and the form of statement to be submitted under Section 14;

(e) the inventories of property, lists of creditors and of debtors and of debts due to and from the debtor, the examination in respect of property or creditors, the time at which the debtors shall attend before the Court and do other things in relation to property under sub-section

(1) of Section 16 and the production of books of account, the examination to be submitted to and the information to be supplied by a creditor in respect of the debt due to him by the debtor under sub-section

(2) of Section 16;

(f) the manner of determining the value of property and other assets under sub-section (1) and the manner of calculating the market value of the lands under sub-section (4) of Section 28;

(g) the form of award under sub-section (2) of Section 31 and subsection (2) of Section 32;

(h) the form of application under clause (i) of Section 38;

(i) the manner in which property may be sold under Section 41;

(j) the manner of recovery of Court fees under sub-section (2) of Section 44;

(k) the manner of service of notice under Section 45;

(1) the form of and the particulars to be included in the Register of Debt Adjustment Awards and the Index kept under Section 47;

(m) the particulars to be included in the Memorandum under Section 48; and

(n) the conditions on which authority to grant loans shall be granted under sub-section (2) of Section 61.

(3) Every rule made under this Act, shall be laid, as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree in making any modification in the 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.

Section64 Repeal and savings

(1) The Karnataka Debt Conciliation Act, 1937 (Karnataka Act VI of 1937), the Madras Debt Conciliation Act, 1936 (Madras Act XI of 1936) and the Debt Conciliation Act, 1940 (Coorg Act II of 1940), are hereby repealed and all Boards established under the repealed Acts shall stand dissolved from the date of repeal in the respective Areas: Provided that.

(a) all proceedings pending before any such Board on the date this Act comes into force shall, subject to the pecuniary limits of the jurisdiction of the Court, be continued and disposed of by the Court under this Act, as if the application under Section 4 had been made to the Court in respect thereof;

(b) all awards made, confirmed or modified under the repealed Act shall be deemed to have been made, confirmed or modified under this Act, as if this Act was in force on the date when the said awards were made, confirmed or modified as the case may be;

(c) all appeals pending before any Court under the repealed Acts against the decision, order or award of such Board shall be continued and disposed of, as if the said appeals were filed under the provisions of this Act; and

(d) all appeals which could have been filed under the repealed Acts against any decision, order or award of such Board, but which could not be filed only by reason of the fact that the said Act was repealed by this Act shall, when filed before a Competent Court, be deemed to have been filed under the provisions of this Act and shall be disposed of accordingly.

(2) The Karnataka Agriculturists' Relief Act, 1928 (Karnataka Act XVIII of 1928), the Madras Agriculturists' Relief Act, 1938 (Madras Act IV of 1938), the Bombay Agricultural Debtors Relief Act, 1947 (Bombay Act XXVIII of 1947), and the Hyderabad Agricultural Debtors Relief Act, 1956 (Hyderabad Act XVI of 1956), are hereby repealed: Provided that such repeal shall not affect the previous operation of the Acts so repealed and anything done or any action taken (including Courts established or constituted, rules or orders made, forms prescribed, notifications or notices issued and proceedings instituted) by or under the provisions thereof, shall in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until superseded by anything done or any action taken under this Act:

Provided further that all proceedings pending before any Court or authority shall stand transferred to the Competent Court or authority under this Act, and if there be a doubt as to the competency of the Court or authority, to such Court or authority as the High Court may designate and shall be continued before and disposed of by such Court or authority.

RULE

KARNATAKA AGRICULTURAL DEBTORS RELIEF RULES, 1969

In exercise of the powers conferred by Section 63 of the Karnataka Agricultural Debtors Relief Act, 1966 (Mysore Act 29 of 1966), the Government of Karnataka hereby makes the following rules, the draft of the same having been previously published in Notification No. GSR 3 (No. DPC 128 CBA 66), dated the 28th December, 1967 in Part IV, Section 2-C(i) of the Karnataka Gazette, dated the 28th December, 1967 as required by sub-section (1) of the said section, namely:

Rule1 Title

These rules may be called the Karnataka Agricultural Debtors Relief Rules, 1969.

Rule2 Definitions

In these rules, the content otherwise requires.

(a) "Act" means the Karnataka Agricultural Debtors Relief Act, 1966;

(b) "Code" means the Code of Civil Procedure, 1908;

(d) "Government" means the Government of Karnataka;

(e) "Section" means a section of the Act.

Rule3 Financing of Crops for other purposes

Loans may be advanced for the "financing of crops" for the following other purposes also.

(i) Meeting Labour charges;

(ii) Meeting Transport charges;

(iii) Purchase of fodder;

(iv) Intercultivating;

(v) Threshing;

(vi) Hire or purchase of plough, cattle and agricultural implements;

(vii) Maintenance of the debtor and his dependents and of his cattle and repairs to agricultural implements;

(viii) Meeting current expenses of running agricultural machinery like pumps or engines, including fuel charges; and such other purpose in respect of any particular area in any particular year as may have been certified by Government to be necessary for the purpose of raising or harvesting any crop in that year.

Rule4 Seasonal finance

The advancing of loans for the following purposes shall be deemed to be seasonal finances, namely.

(i) Raising of crops during the ploughing season or later, ploughing, sowing, harrowing, weeding, harvesting, purchase of seeds and manure;

(ii) Labour charges;

(iii) Transport charges;

(iv) Purchase of fodder;

(v) Intercultivating;

(vi) Threshing;

(vii) Hire or purchase of plough, cattle and agricultural implements;

(viii) Maintenance of the debtor and his dependents and of his cattle and repairs to agricultural implements;

(xi) Current expenses of running agricultural machinery e.g., pumps or engines, including fuel charges;

Rule5 Applications under sub-section (1) of Section 4 and sub-section (1) of Section 8.

Application by the debtor or the creditor under sub-section (1) of Section 4 shall be in Forms 1 and 2 as the case may be, and applications under sub-section (1) of Section 8 shall be in Form 3. They shall be presented to the Court during office hours by the applicants personally or shall be sent by registered post addressed to the Presiding Officer of the Court.

Rule6 Manner of Publication of General notice under Section 14

The general notice under clause (b) of Section 14 shall be published by affixing copies of it at the offices of the Court concerned and the Tahsildars of Taluks or the Revenue Inspectors of the Hoblies concerned. Such notice shall state that the list of debtors, who have made applications for adjustment of debts or against whom applications have been made, will be available for inspection at all reasonable times in the Court.

Rule7 Form of statement under Section 14

The statement which a debtor or creditor is required to submit under Section 14 shall be in Form 4 or 5 as the case may be.

Rule8 Manner of Determining the value of debtor's Property under subsection (1) of Section 28

For the purposes of sub-section (1) of Section 28, the value of the debtor's movable and immovable property shall be determined by the Court in the manner specified below.

(i) Immoveable Property. The Court shall determine the value of any immovable property by taking into consideration.

(a) the bona fide sales and leases of the property in question during the preceding twelve years;

(b) the bona fide sales and leases of similar properties in the neighbourhood during the preceding twelve years; and

(c) the valuation of the property in question made by the Land Valuation Officers appointed by Government in this behalf.

(ii) Moveable Property. The Court shall determine the value of moveable property by taking into consideration the valuation of the property in question made by the Land Valuation Officers appointed by Government in this behalf and also by questioning the parties concerned and by making such other inquiries as it may think fit.

(iii) The land valuation officers appointed by Government may be appointed by the Court as Commissioners under Order XXVI in Schedule I to the Code of Civil Procedure, 1908, for the purpose of making an inquiry for determination of the value of debtor's moveable and immoveable property.

Rule9 Manner of Determining the Market value of Debtor's Property under sub-section (4) of Section 28

For the purpose of sub-section (4) of Section 28, the market value of the lands of a debtor which under any law for the time being in force are not transferable or alienable except with the previous sanction of the Deputy Commissioner or the State Government shall be determined by the Court by taking into consideration.

(a) the bona fide sales and leases of the lands in question during the preceding twelve years, if any; and

(b) the bona fide sales and leases of similar lands in the neighbourhood during the preceding twelve years; and after ascertaining the valuation of the lands in question from the Tahasildar of the Taluk or the Revenue Inspector of the Hobli concerned.

Rule10 Forms of award etc.

(1) The award under Section 31 shall be in Form 6 and the award sub-section (2) of Section 32 shall be in Form 7.

(2) The Court shall send a copy of the award passed under sub-section (2) of Section 32 to the primary Land Mortgage Bank concerned or the Karnataka Central Co-operative Land Development Bank Limited, as the case may be.

Rule11 Certification of Court under proviso to Section 32(4)

(1) An application for a certificate of the Court under the proviso to sub- section (4) of Section 32 shall be in Form 8 and shall be presented by the Secretary of the Primary Land Mortgage Bank or of the Karnataka Central Co-operative Land Development Bank Limited, as the case may be, to the Court concerned during the office hours personally or sent by registered post addressed to the Court. Every such application shall be received by the Civil Judge or by such person as may be authorised in this behalf by him to receive it.

(2) On receipt of such application the Court shall, after making such inquiry as it deems fit, issue the requisite certificate in favour of the Bank.

Rule12 Form of application under clause (i) of Section 38

An application under clause (i) of Section 38 shall be in Form 9.

Rule13 Procedure when a debtor's property is ordered to be sold under Section 41 or sub-section (3) of Section 54

(1) Every sale of property, whether moveable or immoveable under Section 41 or sub-section (3) of Section 54 shall be held by an officer of the Court in accordance with the procedure laid down for the sale of such property under the Code.

(2) A certificate in Form 10 shall be issued to the purchaser of property by the officer conducting the sale under this rule.

Rule14 Recovery of Court-fees

The Court-fees payable under sub-section (1) of Section 44 shall be recovered as arrears of land revenue.

Rule15 Form of Register of Debt Adjustment Awards and Index

The Register of Debt Adjustment awards in the form of a file book with numbered butts in Form 11 and an Index relating thereto in Forms 11-A and 11-B shall be kept in all registration offices.

Rule16 Form of Memorandum

The memorandum to be sent by the Court under Section 48 shall be in the Form 12 and shall be endorsed and certified copy of the award sent for registration under the said section.

Rule17 Procedure in Code to be followed generally

In respect of any matter for which no provision is made in the Act or these rules, the procedure laid down in the Code shall, so far as may be, be followed by the Court in the proceedings before it.

Rule18 Conditions subject to which authorised persons may advance loans

The authorisation under Section 61 to advance loans to debtors shall be subject to the following conditions namely.

(1) The authorised person shall not advance loans to debtor except for the purpose of seasonal finance, not exceeding the maximum limits fixed by the Deputy Commissioner under Rule 19.

(2) The authorised person shall not knowingly advance any loan to any debtor who had previously taken a loan from another authorised person unless such previous loan has been fully paid or unless he (the authorised person) agrees to discharge the liability of the debtor in respect of such previous loan.

(3) The authorised person shall not unreasonably withhold permission required by a debtor under sub-section (1) of Section 62 for sale of the standing crops or the produce of his land and if the authorised person himself buys the crops or produce he shall pay the debtor the price thereof at the market rate.

(4) The authorised person shall keep regularly in Form 13 a separate account of each loan advanced to a debtor:

Provided that where the loans to any debtor are advanced on a current account, the authorised person may keep an account of all transactions relating to such loans.

Explanation. For the purposes of this clause the term "Current account" includes, in the case of banks, accounts relating to overdrafts, cash credits and pro-note accounts which are maintained in the form of current accounts.

(5) The authorised person shall, within one month after the expiry of every year supply every debtor a full and correct statement of accounts signed by him or his agent. Such statement of accounts shall show all transactions entered into during the year and the balance outstanding on account of each loan on such date as the Government may specify either generally or for a particular area and shall be in Form 14:

Provided that where the loans are advanced on a current account, it shall be sufficient to furnish particulars of the balance due on the whole of such account on the prescribed date. In the case of banks, the requirements of this clause shall be deemed to have been complied with it a full statement of accounts has been supplied to the debtor by means of a pass-book or otherwise from time to time throughout the year and intimation is given within one month after the expiry of the year of the amount of the balance remaining due on the prescribed date.

(6) The statement of accounts shall be furnished to the debtors by registered post and an acknowledgement obtained thereof at the cost of the authorised person.

(7) If any repayment is made in respect of a loan, interest on such loan shall be calculated upto the date of such repayment; and if the loan or any part of it is outstanding, interest shall thereafter be calculated only on the balance of the principal still outstanding.

(8) The authorised persons, unless specially exempted by Government, shall allow such officer as may be appointed in this behalf by Government to inspect the account maintained by him.

(9) The State Government may in its discretion cancel the authority granted by it for breach of any of the foregoing conditions or for any other reason.

18 Conditions subject to which authorised persons may advance loans

The authorisation under Section 61 to advance loans to debtors shall be subject to the following conditions namely.

(1) The authorised person shall not advance loans to debtor except for the purpose of seasonal finance, not exceeding the maximum limits fixed by the Deputy Commissioner under Rule 19.

(4) The authorised person shall keep regularly in Form 13 a separate account of each loan advanced to a debtor:

Provided that where the loans to any debtor are advanced on a current account, the authorised person may keep an account of all transactions relating to such loans.

(6) The statement of accounts shall be furnished to the debtors by registered post and an acknowledgement obtained thereof at the cost of the authorised person.

(8) The authorised persons, unless specially exempted by Government, shall allow such officer as may be appointed in this behalf by Government to inspect the account maintained by him.

(9) The State Government may in its discretion cancel the authority granted by it for breach of any of the foregoing conditions or for any other reason.

Rule19 Deputy Commissioner to fix maximum limits upto which advance may be made

The Deputy Commissioner, shall, by notification in the Official Gazette fix maximum limits upto which persons authorised under Section 61 may advance loans to debtors, who are parties to any proceedings under the Act or in respect of whose debts an adjustment has been made under the Act for seasonal finance once a year. Such limits shall come into force from the 1st day of the month next to that in which the notification is published by the Deputy Commissioner and shall remain in force till the end of the month in which a fresh notification is published by the Deputy Commissioner in the next year. Such limits may be fixed separately for different crops and for different areas, having regard to the seasons and nature and productivity of crops.

Rule20 State Government to fix maximum rates of interest

The State Government shall, from time to time, by notification in the Official Gazette, fix a rate of interest not exceeding six per cent, per annum, at which loans for seasonal finance may be advanced by persons authorised under Section 61.

APPENDIX 1 FORM

FORM 1

[See Rule 6]

The Court

of the Munsiff/Civil Judge,

Under Section 4(1) of the Karnataka Agricultural Debtors Relief Act,

1966,1....................................... son

of.............. resident of...................

Taluk, aged......................... and doing business as........................ hereby

apply for

the adjustment of my debts under the said Act.

2. The amount and

particulars of all debts due from me (including those mentioned in Section 3) are as

follows.

Amount of debt SI. No. Full Name residenceand full address ofthe creditors Principal Interest Total claimed bythe creditor Amount if any,admitted by thecreditor History of each debtwith particulars of theoriginal principal rateof interestchargeable (1) (2) (3) (4)

Particulars of debts for which the debtor is liable as surety, joint surety or joint debtor Remarks Amount of debt Nature of liability Full names and addresses of the debtors, joint sureties or joint debtors (5) (6)

3. The particulars of my property including

claims due to me are as follows.

(a) Immovable property (including property

situate outside the State of Karnataka)

Specification of the Name of village with S. Nos. property with boundaries where necessary. Survey No. Area in acres Government assessment Nature of tenure Annual income derived Market value (1) (2) (3) (4) (5) Lands .............................. Houses ............................ Details of any attachment, mortgage, lien or charge subsisting thereon. Full names and addresses of the co-shares of the debtor, if any. Remarks (6) (7) (8)

(b) Movable property (Including cash) Seria1No. Description Estimated value Places where it may be found Details of any pledge, charge or lien thereon Remarks (1) (2) (3) (4) (5) (6)

(c) Claims due. Full name and address of the person from whom the claim is due Amount due Particulars of the claims including date of commencements, rate of interest, whether secured and if so, how, etc., Nature of the documents evidencing the claim and in whose possession Remarks

Principal Interest

(1) (2) (3) (4) (5)

4. Particulars of property of the nature mentioned in paragraph 3 transferred or encumbered are as follows. Description of property Nature of transfer or encumbrance To whom transferred or mortgaged etc., (Full name and address of such person) Date of transfer or encumbranced Remarks (1) (2) (3) (4) (5)

5. I hereby declare

that all debts which are due, or which to my knowledge any person claims to be

due from me and all my properties have been included in the above statements.

Dated

the 19 Signature of the Applicant.

Verified that the contents of

paragraphs.................................... of the

application, are true upon the personal knowledge of, and those in

paragraphs.......................... upon information received and believed to be

true by the undersigned.

Dated

the 19 Signature of the Applicant.

APPENDIX 2 FORM

FORM 2

[See Rule 5] To

The Court of the

Munsiff /Civil Judge,

Under Section 4(1) of the Karnataka

Agricultural Debtors Relief Act, 1966.

I............................... son of............................... resident of..............

............. Taluk................................ hereby apply for the adjustment of my

claims

against............................................. who is my debtor.

2. The particulars of my claims are as follows. Name and full address of the debtor Amount of debt claimed Whether secured and if so, how History of each debt with particulars of the original principal and date of interest charged Names and addresses of other creditors so far as they are known to the applicant. Remarks

Principal Interest

(1) (2) (3) (4) (5) (6)

3. The particulars of

the debtor's property including the property situate outside the State of Karnataka

so far as they are known to me are as follows.

(a) Immovable property. Description Area of extent of share Assessment Value Particulars of any mortgage, lien or charge Remarks (1) (2) (3) (4) (5) (6)

(b) Movable property. Description Value Applicant's charge on the same, if any Remarks (1) (2) (3) (4)

Dated the 19...... Signature of the Applicant.

Verified that the contents of paragraph....................... are true upon the

personal knowledge of, and these in paragraph....................... upon

information received

and believed to be true by the undersigned.

Dated the 19.... Signature of the Applicant.

APPENDIX 3 FORM

FORM 3

[See Rule 5]

Form of Application by a Debtor/Creditor under Section 8(1) for recording a settlement.

The Court of the Munsiff /Civil Judge,

1. Under Section 8(1) of the Karnataka Agricultural Debtors Relief Act,

1966, I Son of resident of Taluk

hereby apply that the settlement in respect of my debts/claims arrived at

between the parries undermentioned below on be

recorded and certified under Section 8(3) of the said Act.

2. The particulars regarding the settlement are as follows.

Parties to settlement Amount of debt claimed due by the creditors Amount for which the settlement is reached Instalments in which the amount is to be paid and priority among the creditors, if any Particulars of the property of the debtor relating to the settlement with details of any charge, lien or mortgage thereon Remarks Name and address of the debtor Names and Addresses of the creditors (1) (2) (3) (4) (5) (6)

Dated the 19 Signature of the Applicant (Debtor/Creditor)

Verified that contents of paragraph 2 columns are true

upon the personal knowledge, of and those of paragraph 2, columns

... upon information received and believed to be true by the undersigned.

Dated the 19.... Signature of the Applicant

(Debtor/Creditor).

APPENDIX 4 FORM

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residence and full Principal Interest address of the Creditor

Total claimed by the creditor

Amount if any, admitted by the Creditor

(1)

(2)

(3)

"History of each debt with particulars of the original principal and rate of interests chargeable

Particulars of debts for which the debtor is liable as surety, joint surety or joint debtor Remarks

Amount Nature of of debt liability

Full names and addresses of the debtors, joint sureties of joint debtors

(4)

(5)

(6)

2. Particulars of Debtor's Property including Claims Due to the Debtor

(a) Immovable Property (including Property Situate Outside the State of Karnataka)

Specification of the property with boundaries where necessary

Name of the village with Survey Nos.

Nature of tenure

Annual income derrived

MarketValue

Details of any attachement, mortgage, lien or charge subsitring thereon

Full names and address of the co-sharer of the debtor, if any

Remarks

Survey Nos.

Area in acress

Government

assessment

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Lands

Houses

(b) Movable Property (Including cash)

Serial

No.

Description

Estimated value

Places where it may be found

Details of any pledge charge of lien thereon

Remarks

(1)

(2)

(3)

(4)

(5)

(6)

Full name and

Amount due

Particulars of the claims

Nature of the

address of the person from whom the claim

principal interest.

including date of commencement rate of interest, whether secured

documents evidencing the claim and in

Remarks

is due.

and if so, how etc.

whose possession

(1)

(2)

(3)

(4)

(5)

Particulars of Property of the Nature Mentioned in Paragraph 2 Transferred or Encumbered

Description of Property

Nature of transfer or encumbrance

To whom transferred or mortgaged etc., (full name and address)

Date of transfer or encumbrance

Remarks

(1)

(2)

(3)

(4)

(5)

Signature of Debtor.

APPENDIX 5 FORM

[See Rule 7]

Statement required to be submitted by a creditor under Section 14 of the Karnataka

Agricultural Debtors Relief Act. 1966

1. Particulars of creditor's claims:

Name and full address of the debtor

Amount ofdebt claimed

Whether secured and if so, how

"History of each debt, with particulars of the original principal and rate of interest charged

Name and addresses of other creditors so far as they are known to the applicant

Remarks

Principal Interest

(1)

(2)

(3)

(4)

(5)

(6)

2. Particulars of debtor's property including property situate outside the State of Karnataka,

so far as they are known to the creditor

(a) Immovable property:

Description

Area of extent of share

Assessment

Value

Particulars of any mortgage lien or charge

Remarks

(1) (2) (3) (4) (5) (6)

(b) Movable property: Description Value Applicant's share on the same, if any Remarks (1) (2) (3) (4)

Signature of the Creditor.

APPENDIX 6 FORM

FORM 6

[See Rule 10(1)]

Award under Section 31 of the Karnataka Agricultural Debtors Relief Act, 1966

Proceedings No.

Year:

Order of the Court

Whereas, on an application made under the Karnataka Agricultural Debtors

Relief Act, 1966, for the adjustment of debts of the described in Schedule A,

this Court has determined under the provisions of the said Act, the amounts

payable to the creditors described in the said Schedule A.

2. It is hereby ordered under Section 31 of the said Act as under.

(1) The debtor shall pay to each creditor concerned the amount mentioned against his name

in column 4 of Schedule A, in the manner laid down in column 7 thereof.

(2) The properties of debtor mentioned in Schedule B and bearing

Serial Nos.......are hereby charged for the payment of the creditors

described in Schedule A (bearing Serial Nos................).

(3) Properties bearing serial Nos...................in Schedule B now

in possession of the creditor............shall be delivered to the debtor

subject to the conditions which are recorded at the end.

(4) Properties bearing serial Nos......................in Schedule B

shall be liable to be sold for the recovery of debts of creditors Nos........

......respectively in Schedule A. The conditions subject to which these

shall be sold are recorded at the end.

(5) Simple interest at the rate mentioned in column 4 of Schedule A shall be

allowed on the amount mentioned in that column; costs mentioned in column

5 and Court fees mentioned in column 6 of the said Schedule A shall be paid by

the parties mentioned in those columns.

(6) The debts shall be paid in priority to the creditors according to the order in which

their names are arranged in column 2 of Schedule A.

3. It is hereby declared by the Court under Section 27(2) of the Act that

alienations of properties bearing Nos..................in Schedule B and

encumbrances on properties bearing Nos.........in the said Schedule B

shall be void.

Seal

Munsiff/Civil Judge...........

SCHEDULE A

Name and address of the debtor

Names and addresses of the creditors, arranged in order of priority mentioned in Section 31(2)(ii) including those creditors who are mentioned in Section 3.

Amount of debt (secured or unsecured) originally claimed due by the creditor.

Amount of debt as sealed down by the Court under Section 3 or otherwise made payable under the provisions of the Act.

Sl. Name and address of No. the Creditor.

Amount Rate of interest at which further interest shall be payable.

(1)

(2)

(3)

(4)

Costs Court fees Amount in column 4 how payable

Remarks

Amount

Names of parties who have to pay

Amount Names of parties who have to pay and the manner of payment

In how

Amountof each

When payable

Total in

Amount in respect

many instalments

Instalment

Years

Month

words and figures

of which a charge is kept

(5)

(6)

(7)

(8)

(9)

SCHEDULE B

(a) Immoveableproperties

Name of villages with survey Nos. etc.

Remarks

Sl.No.

Specification ofproperties with boundaries where necessary (land or houses)

SurveyNo. and not Hissa

Area in acress

Asseesment

Nature ofdebtorsright

Details of any encumbrances lien, mortgage or charge already subsisting thereon

(1)

(2)

(3)

(4)

(5)

(6)

(b) Moveable properties.

Serial No.

Description

Place where it may be found

Details of any mortgage; charge or lien already subsisting thereon

Remarks

(1)

(2)

(3)

(4)

(5)

APPENDIX 7 FORM

FORM 7

[See Rule 10(1)]

Award under Section 32(2) of the Karnataka Agricultural

Debtors Relief Act, 1966

Proceedings No. of 1966...

Award of Court...............................

Whereas, on an application made under the Karnataka Agricultural

Debtors Relief Act, 1966, for the adjustment of debts of..................

resident of............................(hereinafter referred to as the

said debtor), this Court has determined under the provisions of the said Act the total amount

of his debt as sealed down under Section 30 of the said Act;

And whereas, the creditor (z) mentioned in the Schedule hereto annexed has/have all agreed

to the further sealing down of the debts under sub-section (1) of Section 32 of the said Act;

And whereas, the said debtor has not paid the amount of the debts finally sealed down

within the period fixed by the Court and has not produced the creditor's receipt for the

payment thereof.

It is hereby directed under sub-section (2) of Section 32 of the said Act

that (a) the ......................primary Land Development Bank. &...................Karnataka Central

Co-operative Land Development Bank Limited.

at @.........................................shall pay the said

creditor (s) in cash the amount of debt as finally sealed down under Section 30 or Section 32(1),

as the case may be, or if the creditor (s) so desires/desire, issue to him/them bonds issued by

the Karnataka Central Co-operative Land Development Bank Limited, and guaranteed by the State Government in full satisfaction of all the debts due to him/them from the said debtor:

Name of Bank. If any & To be retained only if there is no Primary Land Development Bank in

the area. Name of place where Bank is situate.

(b) the said debtor shall pay to the said Bank a sum of Rs........with

interest at the rate notified by Government from time to time in that behalf

under sub-section (3) of Section 32 of the said Act from the date on which

the said Bank pays the creditor/s the amount of debts due to him/them or

the date on which the bonds is/are issued as the case may be till the

amount of the debt is paid in full by .........................annual

installment of Rs..............each, the first instalment being payable on.

and Rs............................shall be paid as costs by...........

.....to.........and;

(d) all the immoveable property of the said debtor, described in column 4 of the Schedule hereto is hereby charged in favour of the said Bank until all the instalments mentioned in paragraph (b) are fully paid up.

Munsiff/Civil Jude.............

Here mention number of annual instalments.

SCHEDULE

Serial Number

Name and Address of the creditor

Amount of debt as finally determined by the Court to be payable to each creditor

Description, and full particulars of all the immoveable property of the debtor

Remarks

(1)

(2)

(3)

(4)

(5)

APPENDIX 8 FORM

FORM 8

[See Rule 11]

The Munsiff/Civil Judge............

Under the proviso to sub-section (4) of Section 32 of the Karnataka

Agricultural Debtors Relief Act, 1966, I,.................Manager.

Primary Land Development Bank..............hereby apply for

Karnataka Central Co-operative Land Development Bank Limited........

.......a grant of a certificate for recovery of sums due under award made

under Section 12 of the said Act in proceedings No............of 1966 of

the Court of the Civil Judge...............The particulars of sums are as

follows.

Name and full address of the debtor

Amount of Award

Arrears due

(1)

(2)

(3)

Primary Land Development Bank.

Secretary.....................Karnataka Central Co-operative Land Development Bank Limited.

Dated the.....1966..

APPENDIX 9 FORM

FORM 9

[See Rule 12]

The Court of Munsiff /Civil Judge.

Under clause (1) of sub-section (3) of Section 38 of the Karnataka

Agricultural Debtors Relief Act, 1966,I,....................son of......

.............resident of....................Taluk...............

hereby apply for execution of award No..........dated................

.. .passed by the Court as the debtor.................has made default in

the payment of the instalment due to be paid in the month of............

.. year.............

Dated the.........19

Signature of the Creditor.

APPENDIX 10 FORM

FORM 10

[See Rule 13]

Form of Certificate of Sale

This is to certify that..............................has been declared the purchaser for Rs.............at a sale by public auction on the.............date of.........1966.....................of...............in

sale conducted by the..................in pursuance of Section 41 or sub-section (3) of Section 54 of the Karnataka Agricultural Debtors Relief Act, 1966.

Officer conducting the Sale.

APPENDIX 11 FORM

FORM 11

[See Rule 15]

Space for binding

Serial No. of Award

Space of Butt for parting page

(1)

(2)

(3)

APPENDIX 11A FORM

FORM 11-A

[See Rule 15]

Name of Debtor

Place of residence

Name(s) of Creditor (s)

Place(s) of residence

Situation of property

Date of Award

Date of filing

Serial No. Volume and page

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

APPENDIX 11B FORM

FORM 11-B

[See Rule 15]

Amount or value of award or amount involved

Survey No. and Sub-Division No. House No. if any

Area

AssessmentorJudl.When given

NameofDebtor

Name(s)ofcreditor(s)

Dateofawal

Dateoffiling

S.No.Col.And Page

Remark

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

APPENDIX 12 FORM

FORM 12

[See Rule 16]

Forwarded with compliments to the Sub-Registrar/Registrar of................under Section 48

of the Karnataka Agricultural Debtors Relief Act, 1966.

Place:

Dated:

Munsiff/Civil Judge.

APPENDIX 13 FORM

FORM 13

[See Rule 18]

Loan account of...........son of.........

residence.......Date as at which account is made up

Sl. No.

Date of advancing loan

Principal or balance of Principal if brought over from previous year

Rate of interest

Date of re-payment

Payment credited towardsPrincipal Interest

Remarks

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total repayment towards the loan during the year. Balance, if any, at the end of the year.

APPENDIX 14 FORM

FORM 14

[See Rule 18]

Loan accounts of.......................son of....................residence................for the year ending on..................Rate of interest.

SI. No. of loan

Date of loan

Principal amount of loan or balance of Principal if brought over from previous year

Amount of Interest, if any broughtforward

Payment credited during the year towards

Balance outstanding at the end of the year

Principal Interest

(1)

(2)

(3)

(4)

(5)

(6)

Dated the.........19

Total for all loans outstanding against the debtor.

Signature of Creditor or Agent.

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