1THE LAND IMPROVEMENT LOANS ACT, 1883

(ACT NO. 19 OF 1883)

PASSED BY THE GOVERNOR-GENERAL

OF INDIA IN COUNCIL

 

Contents

 

SN

Subject

  1.  

Short title

  1.  

Local extent and Commencement

  1.  

Collector” defined

  1.  

Purposes for which loan may be granted under this Act

  1.  

Mode of dealing with applications for loans

  1.  

Period for repayment of loans

  1.  

Recovery of loans

  1.  

Order granting loan conclusive on certain Liability of points

  1.  

Liability of joint borrowers as among themselves

  1.  

Power to make rules

  1.  

Exemption of improvements from assessment to land revenue

  1.  

Certain powers of State Government to be exercisable by Board of Revenue or Financial Commissioner

 

1THE LAND IMPROVEMENT LOANS ACT, 1883

(ACT NO. 19 OF 1883)

PASSED BY THE GOVERNOR-GENERAL

OF INDIA IN COUNCIL

 

(Received the assent of the Governor-General on the 12th October, 1883)

 

1

2

3

4

Year     

No.

Short title

Whether repealed or otherwise Affected by legislation

1883

19

The Land Improvement Loan Act, 1883

Amended by Act 12 of 1891

Amended by Act 18 of 1899

Amended by Act 8 of 1906

Amended by Act 4 of 1914

Adapted by Government of India (Adaptation of Indian Laws) Order, 1937

Adapted by Adaptation of Laws Order, 1950

Adapted by Adaptation of Laws (No. 2), Order, 1956

Extended to the territories which Immediately before the 1st November, 1956 were comprised In the State of Patiala and East Punjab States Union by Punjab Act No. 5 of  19572

 

An Act to consolidate and amend the law relating to loans of money by the Government for Agricultural Improvements.

Whereas it is expedient to consolidate and amend the law relating to loans of Money by the Government

 

1For Statement of Objects and Reasons see Gazette of India, 1882,

Part V, page, 954.

2For Statement of Objects and Reasons see Punjab Government

Gazette (Extraordinary), 1957. page 339.

 

For agricultural improvements; it is hereby enacted as follows :--

 

1.         Short title :- (1) This Act may be called the Land Improvement Loans Act, 1883.

 

2.         Local extent and Commencement: - It extends to the whole of India except 1[the Territories which, immediately before the 1st November, 1956, were comprised in Part B States] but shall not come into force in any part of  2[territories to which this Act extends until such dates as the 3[ State Government] *  *  4  *  * may  by notification in the 5[ official Gazette] appoint in this behalf.

 

            Acts XXVI of 1871 and XXI of 1870 repealed :- (1) The Land Improvement Act, 1871 and Act XXI of 1876 (An Act to amend the Land Improvement Act, 1871), shall except as regards the recovery of advances made before this Act comes into force and costs incurred by the Government in respect of such advances, be repealed.

(2) When in any Act, Regulation or Notification passed or issued before this Act comes into force, reference is made to either of those Acts the reference shall, so far as may be practicable, be read as applying to this Act or the corresponding part of this Act.

 

3.         “Collector” defined :- In this Act, “Collector” means the Collector of land-revenue of a district, or the Deputy Commissioner or any officer empowered by the  3[State Government] by name or by virtue of his office to discharge the functions of a Collector under this Act.

 

4.         Purposes for which loan may be granted under this Act:- (1) Subject to such rules as may be made under section 10, loans may be granted under this Act by such officer as may from time to time, be empowered in this behalf by the  3[State Government] for the purposes of making any improvement, to any person having a right to make that improvement, or , with the consent of that person, to any other person

 

1Substituted for the words “Part B States” by the Adaptation of Laws (No. 2) Order, 1956.

2Substituted for the words “a Part A State or a Part C State” by the Adaptation of Laws  (No. 2) Order, 1956.

3Substituted by Government of India (Adaptation of Indian Laws) Order, 1937. and  Adaptation of Laws Order, 1950. for “Local Government”.

4The words “with the previous sanction of the Governor-General in Council” repealed by Act 8 of 1906. section 2.

5Substituted by Government of India (Adaptation of Indian Laws) Order, 1937, for  “Local Official Gazette”.

 

(2) “Improvement” means any work which adds to the letting value of land, and includes the following, namely---

(a)                         the construction of wells, tanks and other works for the storage, supply or distribution of water for the purposes of agriculture, or for the use of men and cattle employed in agriculture;

(b)                         the preparation of land for irrigation;

(c)                         the drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purpose of wasteland which is culturable;

(d)                         the reclamation, clearance, enclosure or permanent improvement of land for agricultural purposes;

(e)                         the renewal or reconstruction of any of the foregoing works, or alterations therein or additions thereto; and

(f)                          such other works as the  4[official Gazette], declare to be improvements for the purposes of this Act.

 

5.         Mode of dealing with applications for loans:- (1) When an application for a loan is made under this act, the officer to whom the application is made may, if it is, in his opinion, expedient that public notice be given of the application, publish a notice in such manner as the

1[State Government] may, from time to time, direct, calling upon all persons objecting to the loan to appear before him at a time and a place fixed therein and submit their objections

1Substituted by Adaptation of Laws Order, 1950, for  “Provincial Government”.            

2The words “with the previous sanction of the Governor-General in Council” repealed by Act 8 of 1906, section 2.

3For notification, see Revenue Department notification  No. 1493-ARII(III) –60/1345, dated 24th May, 1960.

4Substituted by Government of India  (Adaptation of Indian Laws) Order, 1937, for  “local official Gazette”.

 

            (2) The officer shall consider every objection submitted under sub-section (1), and make an order in writing either admitting or over-ruling it:

            Provided that, when the question raised by an objection is, in the opinion of the officer, one of such a nature that it cannot be satisfactorily decided except by a Civil Court, he shall postpone his proceedings on the application until the question has been so decided.

 

6.         Period for repayment of loans :-(1) Every loan granted under this Act shall be made repayable by installments (in the form of an annuity or otherwise) within such period from the date of the actual advance of the loan, or , when the loan is advanced in installments  1[from the date of the advance of the last installment  actually paid] as may from time to time, be fixed by the rules made under this Act.

            (2) The period fixed as aforesaid shall not ordinarily exceed thirty-five years.

 

(3)       The  2[State Government]  *  *  3  *  *, in making  *  *  4  *  *, the rules fixing the period shall, in considering whether the period should extend to thirty-five years, or whether it should extend beyond thirty-five years, have regard to the durability of the work for the purpose of which the loan is granted, and to the expediency of the cost of the work being paid by the generation of persons who will immediately benefit by the work.

 

7.         Recovery of loans :-(1) Subject to such rules as may be made under section 10, all loans granted under this Act, all interest (if any) chargeable thereon and costs  (if any ) incurred in making the same, shall, when they become due, be recoverable by the Collector in all or any of the following modes, namely :--

(a)   from the borrower—as if they were arrears of land-revenue due by him;

 

               1These words were substituted for the words “from the date of the actual advane of the last installment “ by section 2 of the Land Improvement Loans (Amendment) Act, 1899 (18 of 1899), and are by that enactment to be deemed to have been substituted with effect from the commencement of Act 19 of 1833.

 

2Substituted by Adaptation of Laws Order, 1950.

3The words “and Governor-General in Council” repealed by Act 8 of 1906, section 3.

4The words “and sanctioning” repealed by section 3 ibid.            

 

(b)   from his surety (if any)—as if they were arrears of land-revenue due by him;

(c)   out of the land for the benefit of which the loan has been granted-as if they were arrears of land-revenue due in respect of the land;

(d)   out of the property comprised in the collateral security (if any)—according to the procedure for the realization of land-revenue by the sale of immovable property other than the land on which that revenue is due;

 

Provided that no proceeding in respect of any land under clause (c) shall affect any interest in the land which exited before the date of order granting the loan, other than the interest of the borrower, and of mortgagees of, or persons having charges on, that interest, and where the loan is granted under section 4 with the consent of another person, the interest of that person, and of mortgagees of, or persons having charges on that interest.

            (2) When any sum due on account of any such loan; interest or costs is paid to the Collector by a surety or an owner of property comprised in any collateral security, or is recovered under sub-section (1) by the Collector from a surety or out of any such property, the Collector shall, on the application of the surety or the owner of that property (as the case may be), recover that sum on his behalf from the borrower, or out of the land for the benefit of which the loan has been granted, in the manner provided by sub-section(1).

(3) It shall be in the discretion of a Collector acting under this section to determine the order in which he will resort to the various modes of recovery permitted by it.

 

8.         Order granting loan conclusive on certain Liability of points :- A written order under the hand of an officer empowered to make loans under this Act granting a loan to , or with the consent of , a person mentioned therein, for the purpose of carrying out a work described therein, for the benefit of land specified therein, shall, for the purposes of this Act, be conclusive evidence—

(a) that the work described is an improvement within the meaning of this Act;

(b) that the person mentioned had at the date of the order a right to make such an improvement; and

            (c) that the improvement is one benefiting the land specified.

 

9.         Liability of joint borrowers as among themselves :- When a loan is made under this Act to the members of a village community or to any other persons on such terms that all of them are jointly and severally bound  to the Government for the payment of the whole amount payable in respect thereof, and a statement showing the portion of that amount which as among themselves each is bound to contribute is entered upon the order granting the loan and is signed by each of them and by the officer making the order, that statement shall be   conclusive evidence of the portion of that amount which as among themselves each of those persons is bound to contribute.

 

10.       Power to make rules :- The  1[State] Government  *  *  2  *  * may , from time to time by notification in the 3[official Gazette] make rules consistent with this Act to provide for the following matters, namely :--

            (a) the manner of making applications for loans;

            (b) the officers by whom loans may be granted;

            (c ) the manner of conducting inquiries relative to applications for loans and the powers to be exercised by officers conducting those inquiries;

            (d) the nature of the security to be taken for the due application and repayment of the money, the rate of interest at which, and the Conditions under which, loans may be granted, and the manner and time of granting loans;

 

 

1Substituted by Adaptation of Laws, Order, 1950, for  “Provincial”.

2The words “subject to the sanction of the Governor-General in Council”

repealed by Act 4 of 1914 section 2 and Schedule Part I.

3Substituted by Government of India (Adaptation of Indian Laws) Order, 1937, for “Local Official Gazette.”

 

(e)   the inspection of works for which loans have been granted;

(f)    the installments by which, and the mode in which loans, the interest to be charged on them and the  costs incurred in the making thereof, shall be paid;

(g)   the manner of keeping and auditing the accounts of the expenditure of loans and of the payments made in respect of the same; and

(h)   all other matters pertaining to the working of he Act.

 

11.       Exemption of improvements from assessment to land revenue :- When land is improved with the aid of a loan granted under this Act, the increase in the value derived from the improvement  shall not be taken into account in revising the assessment of land-revenue on the land :

            Provided as follows –

            (1) where the improvement consists of the reclamation of waste-land or of the irrigation of land assessed at unirrigated rates, the increase may be so taken into account after the expiration of such period as may be fixed by rules to be framed by the  1[State] Government.  *  *  2  *  *

            (2) nothing in this section shall entitle any person to call in question any assessment of land-revenue otherwise than as it might have been called in question if this Act had not been passed :

 

3[12.    Certain powers of State Government to be exercisable by Board of Revenue or Financial Commissioner: -The powers conferred on a   1[State] Government by section  4(1),5(1) and 10 may , in a  4[State] for which there is a Board of Revenue or a Financial Commissioner, be exercised in the like manner and subject to the like conditions by such Board or Financial Commissioner; as the case may be: provided that rules made by a Board of Revenue or Financial Commissioner shall be subject to the control of the 1[State] Government.].

 

1Substituted by Adaptation of Laws Order, 1950, for  “Provincial”.

2The words  “with the approval of the Governor-General is Council”, repealed by  Act 8 of 1906, section 5.

3Inserted by Act 4 of  1914. The original section 12, was repealed by Act 16 of 1908.

4Substituted by adaptation of  Laws, Order, 1950, for  “Provincial”.

 

            GENERAL  NOTES.—1.Government of India, Finance and Commerce Department, notification No. 4650. dated 10th  September, 1889, clause  (12), remits the fees chargeable on applications for loans under the Land Improvement Loans Act  XIX

Of  1883.

            2. By Article  57 of Schedule I to the Indian Stamp Act II of  1899, instruments executed by persons taking advances under the Land  Improvement Loans Act, 1883, or by their  sureties, as security  for the repayment of such advances, are exempted from

stamp duty.

            3. Government of India, Finance Department, notification No. 3616-Exe., dated 16th  July, 1909, remits the stamp duty chargeable on an instrument executed foe the purpose of securing the repayment of a lean made, or to be made, under the Land Improvement Loans  Act, 1883  (XIX of 1883), including an instrument whereby a landlord binds himself to consent to the transfer, in the event of default in such repayment, of any land, or interest in land, on the security of which any such loan is made to his tenant.

 

1Substituted by Adaptation of Laws Order, 1950, for  “Provincial”