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Union of India - Section
Section 27 in The Displaced Persons (Debts Adjustment) Act, 1951
27.
/1388The Bill is designed mainly to give relief to displaced debtors in respect of liabilities incurred by them prior to their displacement from West Pakistan though remission of court-fee has also been allowed to displaced creditors. A certain amount of relief was afforded to then by Acts 47 of 1948 and 25 of 1949 but this was found to be inadequate.A thorough examination of the various problems involved had to be made with a view to affording displaced persons adequate and, at the same time, reasonable relief in the matter of their indebtedness, consistently with the needs of their rehabilitation. The task of such examination was entrusted to the Hon'ble Shri Bind Basni Prasad, a Judge of the Allahabad High Court, and the present Bill is the outcome of his recommendations. In brief, the object of the Bill is to relate the payment of all premigration pecuniary liabilities of a displaced person to(a) his 'paying capacity' an expression which has been defined after making liberal allowances in favour of the debtor; and(h) the compensation which might be received by him in respect of his immovable property left behind in West Pakistan.A decree under the law will thus consist of two parts, the first part being equivalent to and recoverable from the 'paying capacity' of the debtor and the second part being equivalent to the balance of the total amount decreed and recoverable from the compensation, if and when received by the debtor. The first part of the decree will, as a rule, be recoverable in instalments.In respect of the second part of the decree, it has been accepted that the amount payable should be scaled down in the proportion in which the displaced debtor is able to obtain recompense in respect of his immovable property left behind in West Pakistan. Where no recompensation is received, there will he no recovery of the second part of the decree.Displaced debtors will have the right to apply, within a period of one year from the enactment of this Bill. for the reduction of debts due to creditors, in accordance with the provisions of this Bill. All pre-migration liabilities will be consolidated for the purposes, but it has been specially provided that no stigma of insolvency will attach to any one seeking relief under this law.Certain additional reliefs, for example, remission of interest after August 15, 1947, exemption from arrest or attachment of rroperties. reduction of certain pre-migration liabilities like maintenance allowance, apportionment of liabilities in the case of joint debts, revision of decrees already passed with a view to bringing them into line with present legislation, etc., have also been provided and in formulating these reliefs the needs of rehabilitation and the fact that displaced persons have been unable to derive benefit from properties left behind in West Pakistan have been given due weight. Although under the Act Civil Courts will he vested with jurisdiction, the Bill provides a simplified procedure for the determination of debts, and minimises the delay involved in a series of appeals and revisions. Debts of different categories - debts secured on immovable property, debts secured by pledge of movable property and simple debts are dealt with differently. The respective circumstances governing such transactions have been taken into consideration, an attempt being made to temper contractual obligations with equity when both creditors and debtors have lost control over the properties offered as security.Special provisions have also been made to enable displaced persons to be absolved, for a period of ten years, from further liability in respect of calls on shares in companies, an opportunity being given to them to have their partly paid up shares converted into a proportionate number of fully paid up ones. Conditions of contracts with insurance companies which were more or less of a technical nature and which become incapable of fulfilment on account of circumstances beyond the control of the insured are declared to have no effect and the insured is given an opportunity of getting compensation for the losses which he has suffered. A special provision has also been made to enable displaced banks to have their existing schemes of arrangement, sanctioned by High Courts under Section 153 of the Indian Companies Act, 1913 modified when, due to reliefs granted to their debtors under this Bill, they find it difficult to carry out their obligations under the schemes. Recognition of Societies and Companies registered in Pakistan has been provided for in case the majority of their members or share-holders have migrated to India." Gaz. Ind., 1951, Pt. II, Section 2, p. 593.[7th November, 1951]An Act to make certain provisions for the adjustment and settlement of debts due by displaced persons, for the recovery of certain debts due to them and for matters connected therewith or incidental thereto.BE it enacted by Parliament as follows:--| 10th December, 1951 in the States of Delhi, Ajmer, Punjab, Uttar Pradesh and Bombay: see notification No. 68(21)/51-Prop., dated 7th December, 1951, Gazette of India, 1951, Extraordinary, Pt. I, Sec 1, p. 503: and in all other States of India, 20th December, 1951: see notification No. S.R.O. 2005, dated 13th December, 1951, Gazette of India, Extraordinary, 1951, pt. II, Section 3, p. 1489. |