Section 3(1) in The M.P. Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987
(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be recovered as if it were an arrear of land revenue :Provided that a certificate issued under this sub-section may be withdrawn by the authority issuing such certificate at any time :Provided further that the cost of proceedings shall always be calculated at the rate of three percent,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.
