FINANCE

AGRICULTURAL DEBTOR'S RELIEF ACT

Agricultural Debtors' Relief Act.-Even before the Money-lenders Act was passed, the Government had brought into operation on a small scale, the Bombay Agricultural Debtors' Relief Act, 1939. It was enacted with a view to reducing the aggregate indebtedness of genuine agriculturists so as to bring it reasonably within the compass of their capacity to repay. The term "agriculturist" as defined in the Deccan Agriculturists' Relief Act, 1879, which too had been enacted to deal with the problem of agricultural indebtedness, was found to be actually bringing into its fold not only genuine agriculturists of the cultivator class, but also pseudo-agriculturists. Under the term " debtor " as defined in the Bombay Agricultural Debtors' Relief Act, the indebted person must be a holder of land and must also be cultivating land personally. Further his income from sources other than agriculture should not exceed a certain maximum limit. Income from land got cultivated by tenants was to be regarded as non-agricultural income under the Act.

The application of the Act has been restricted to debts not exceeding Rs. 15,000 in any individual case. The rate of interest in case of awards should not exceed six per cent, per annum or such less rate as may be notified in that behalf by the State Government or the rate agreed upon by the parties between whom the debt was originally incurred or the rate allowed by the decree in respect of such debts, whichever is lowest. Government fixed (in 1948-49) four per cent, per annum as the rate of interest for purposes of awards made under section 32 (2) of the Act. In case of awards passed in favour of land mortgage banks under section 33, the bank is entitled to recover the amount due to it from the debtor together with interest at such rate as the State Government may notify in this regard. Six per cent, per annum was the rate of interest fixed by Government for purposes of awards made under section 33 (3) of the Act. However, this has been revised to 7¼ per cent, under a Government Notification, dated 12th October 1953.

The Bombay Agricultural Debtors' Relief Act was made applicable in this district, firstly to Khed, Mandangad (Peta), Chiplun, Rajapur, Lanje (Mahal), Deogad and Kankavli (Mahal) talukas on 1st May 1945 and later to Dapoli, Malvan, Vengurla (Peta), Ratnagiri and Guhagar talukas on 1st February 1947. The accompanying table shows the administration of this Act in Ratnagiri district from 1946-47 to 1954-55.

TABLE No. 2.

WORKING OF THE BOMBAY AGRICULTURAL DEBTORS' RELIEF ACT IN RATNAGIRI DISTRICT DURING THE PERIOD FROM 1946 TO 1955.

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