THE DISPLACED PERSONS (DEBTS ADJUSTMENT) ACT, 1951

Year : 1951

[Act, No. 70 of 1951]
[7th November, 1951]

PREAMBLE

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:-

Section -1 Short title, extent and commencement

(1) This Act may be called the Displaced Persons (Debts Adjustment) Act, 1951.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3)  It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different States or for different parts thereof.

Section -2 Definitions

In this Act, unless the context otherwise requires.-

(1)"Company" means a company as defined in the Indian Companies Act,1913 (VII of 1913), and includes a company deemed to be registered under that Act by reason of any of the provisions contained in this Act;

(2) "Companies Act" means the Indian Companies Act, 1913 (VII of 1913);

(3)"Compensation" means any compensation paid, whether in cash or in kind, in respect of any immovable property in West Pakistan belonging to a displaced person under any general scheme arrived at in this behalf between the Government of India and the Government of Pakistan or framed by the Government of India;

(4) "Co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (II of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies;

(5) "Co-operative Societies Act" means the Co-operative Societies Act, 1912 (II of1912), and includes any other law for the time being in force in any State relating to co-operative societies;

(6)"Debt" means any pecuniary liability, whether payable presently or in future, or under a decree or order of a civil or revenue court or otherwise, or whether ascertained or to be ascertained. which-

(a) In the case of a displaced person who has left or been displaced from his place of residence in any area now forming part of West Pakistan, was incurred before he came to reside in any area now forming part of India;

(b) In the case of a displaced person who, before an after the 15th day of August, 1947, has been residing in any area now forming part of India was incurred before the said date on the security of any immovable property situate in the territories now forming part of West Pakistan:

Provided that where any such liability was incurred on the security of immovable properties situate both in India and in West Pakistan, the liability shall be so apportioned between the said properties bears the same proportion to the total amount of the debts as the value of each of the properties as at the date of the transaction bears to the total value of the properties furnished as security, and the liability, for the purposes of this clause, shall be the liability which is relatable to the property in West Pakistan;

(c) Is due to a displaced person from any other person (whether a displaced person or not)ordinarily residing in the territories to which this Act extends;and includes any pecuniary liability incurred before the commencement of this Act by any such person as is referred to in this clause which is based on, and is solely by way of renewal of, any such liability as is referred to in sub-clause (a) or sub-clause (b) or sub-clause(c):

Provided that in the case of a loan, whether in cash or in kind, the amount originally advanced not the amount for which the liability has been renewed shall be deemed to be the extent of the liability;
but does not include any pecuniary liability due under a decree passed after the 15th day of August, 1947, by any court situate in West Pakistan or any pecuniary liability the proof of which depends merely on an oral agreement;

(7) "Displaced bank" means a banking company which, before the 15th day of August, 1947, carried on the business of banking, whether wholly or partially, in any area now forming part of West Pakistan and is declared to be a displaced bank within the meaning of this Act by the Central Government by notification in the Official Gazette;

(8) "Displaced creditor" means a displaced person to whom a debt is due from any other person, whether a displaced person or not;

(9) "Displaced debtor" means a displaced person from whom a debt is due or is being claimed;

(10)"Displaced person" means any person who, on account of the setting up of the Dominions of India and Pakistan, or on account of civil disturbances or the fear of such disturbances in any area now forming part of West Pakistan, has, after the 1st day of March, 1947, left, or been displaced from, his place of residence in such area and who has been subsequently residing in India, and includes any person who is resident in any place now forming part of India and who for that reason is unable or has been rendered unable to manage, supervise or control any immovable property belonging to him in West Pakistan, but does not include a banking company;

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

(12)"Tribunal" means any civil court specified under section 4 as having authority to exercise jurisdiction under this Act;

(13) "Verified claim" means any claim registered under the Displaced Persons (Claims) Act, 1950 (XLIV of 1950) in respect of which a final order has been passed under that Act relating to its verification and valuation;

(14) "West Pakistan" means the territories of Pakistan excluding the Province of East Bengal.

Section -3 Over-riding effect of Act, rules and orders

Save as otherwise expressly provided in this Act, the provisions of this Act and of the rules and orders made there under shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, or in any decree or order of a court, or in any contract between the parties.

Section -4 Tribunals competent to exercise jurisdiction under this Act

The State Government may, by notification in the Official Gazette, specify any civil court or class of civil courts as the Tribunal or Tribunals having authority to exercise jurisdiction under this Act and may define the areas in which and the extent to which such jurisdiction may be exercised.