Section 3 in The M.P. Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987
3. Recovery of certain dues as arrears of land revenue.
(1)Where any person is a party :-(A)to any agreement relating to a loan, advance or grant given to him or relating to payment of price of goods sold to him on credit or relating to hire-purchase of goods sold to him by the State Government or a Corporation by way of financial assistance; or(B)to any agreement relating to loan advance or grant given to him or relating to payment of price of goods sold to him on credit or relating to hire-purchase of goods sold to him by a banking company or a Government Company under a State sponsored scheme or as the case may be, under a socially desirable scheme; or(C)to any agreement relating to a guarantee given by the State Government or a Corporation in respect of a loan raised by an industrial concern; or(D)to any agreement providing that any money payable thereunder to the State Government shall be recoverable as arrears of land revenue and such person,-(i)makes any default in repayment of the loan or advance or any instalment thereof; or(ii)having become liable under the conditions of the grant to refund the grant or any portion thereof makes any default in the refund of such grant or portion or any instalment thereof; or(iii)otherwise;fails to comply with the terms of the agreement then-(a)in the case of the State Government such Officer as the State Government may, by notification, authorise in this behalf;(b)in the case of a Corporation or a Government Company, the Managing Director thereof by whatever name called; and(c)in the case of banking company, the local agent thereof by whatever name called,may send a certificate in such form as may be prescribed, and consistent with the provisions of sub-section (2) of Section 4, to the Collector of the district in which such person normally resides or carries on business or owns property, or to such other subordinate officer of the Collector, as the State Government or the Collector may, by an order, specify in this behalf, mentioning the sum due from such person and requesting that such sum together with the cost of proceedings and interest on the sum due at the rate specified in the agreement, upto the date of recovery, be recovered as if it were an arrear of land revenue :Provided that a certificate issued under this sub-section may be withdrawn by the authority issuing such certificate at any time :Provided further that the cost of proceedings shall always be calculated at the rate of three percent, of the principal sum to be recovered.(2)The Collector or his subordinate officer specified under sub-section (1) on receiving the certificate shall take steps to recover the amount stated therein as arrear of land revenue under the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959).(3)No suit for the recovery of any sum due as aforesaid shall lie in a Civil Court against any person in respect of whom a certificate for recovery of such sum has been issued under sub-section (1) :Provided that in computing the period of limitation for institution of suit for the recovery of any such sum, the period during which the recovery is barred under this section shall be excluded.(4)In the case of any agreement referred to in sub-section (1) between any person referred to in that sub-section and the State Government or a Corporation, no arbitration proceedings shall lie at the instance of either party either for recovery of any sum claimed to be due under the said sub-section or for disputing the correctness of such claim :Provided that whenever proceedings are taken against any person for the recovery of such sum he may pay the amount claimed under protest to the officer taking such proceedings, and upon such payment the proceedings shall be stayed and the person against whom such proceedings were taken may make a reference under arbitration agreement or otherwise enforce an arbitration agreement in respect of the amount so paid.(5)Save as otherwise expressly provided in the first proviso to sub-section (1) and the proviso to sub-section (4), every certificate issued under sub-section (1) shall be final and shall not be called in question in any original suit, application (including any application under the Arbitration Act, 1940) or in any reference to arbitration and no injunction shall be granted by any Court or other authority in respect of any action taken or intended to be taken in pursuance of any power conferred by or under this Act.(6)Any amount recovered under this Act shall, notwithstanding anything contained in any other law for the time being in force, be applied in the following manner, namely :-(a)firstly, towards the cost of proceedings to be shared between the State Government and the authority issuing the certificate under sub-section (1), in such manner as may be prescribed;(b)secondly, towards interest to be paid to the authority;(c)thirdly, towards the principal amount due to be paid to the authority; and(d)the balance, if any, as far as possible in accordance with the provisions of Section 151 of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959).
