Section 14 in The Bombay Agricultural Debtors Relief Rules, 1947
14. Conditions subject to which authorised persons may advance loans.
- The authority under section 54 to any person to 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 (hereinafter referred to in this rule as the authorised person) shall be in Form No. 10. It shall not be granted except on the following conditions :(i)Purposes for which advances may be made and maximum limits of such advances. - The authorised person shall not advance loans to any debtor except for the purpose of seasonal finance not exceeding the maximum limits which the Collector has fixed in this behalf under rule 15.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.(ii)Authorised person not to withhold permission for sale of craps or produce. - The authorised person shall not unreasonably withhold permission required by a debtor under sub-section (1) of section 53 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.(iii)Duty of authorised person to maintain and furnish accounts. -(a)The authorised person shall keep regularly in Form No. 11 a separate account of each loan advanced to a debtor:Provided that, where the loans to any debtor are advanced on current account, the authorised person may keep one 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 pronote accounts, which are maintained in the form of current accounts.(b)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 Government may prescribe either generally or for a particular area and shall contain particulars as in Form No. 12 :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, requirements of this clause shall be deemed to have been complied with if 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.(c)The statement of accounts shall be furnished to the debtor by registered post and an acknowledgement obtained thereof at the cost of the authorised person.(iv)Rate and calculation of interest. -(a)The authorised person shall not charge or recover interest at a rate higher than the rate notified by Government under rule 16.(b)If any repayment is made in respect of a loan, interest on such loan shall be calculated up to 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.(v)Inspection of accounts to be allowed. - The authorised person, 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.(vi)Penalty for non-compliance with conditions mentioned in this rule. - Government may in its discretion cancel the authority granted by it for breach of any of the foregoing conditions or for any other reason.
