THE EMPLOYMENT OF MANUAL SCAVENGERS AND CONSTRUCTION OF DRY LATRINES (PROHIBITION) ACT, 1993

CHAPTER IPRELIMINARY

 

1.Short title, application and commencement.

1. Short title, application and commencement. (1) This Act may be called the Employment of Manual Scavengers and Construction of Dry
Latrines (Prohibition) Act, 1993.(2) It applies in the first instance to the whole of the States of Andhra Pradesh, Goa. Karnataka, Maharashtra, Tripura and West
Bengal and to all the Union territories and it shall also apply to such other State which adopts-this Act by resolution passed in that behalf under clause (1) of article 252 of the Constitution.

(3) It shall come into force in the States of Andhra Pradesh, Goa, Karnataka, Maharashtra, Tripura and West Bengal and in the
Union territories on such date as the Central Government may, by notification, appoint and in any other State which adopts this Act under clause (1) of article 252 of the Constitution, on the date of such adoption.

2. Definitions. In this Act, unless the context otherwise requires.-

(a) “area”, in relation to any provision of this Act, means such area as the State Government may, having regard to the requirements of that provision, specify by notification;

(b) “building” means a house, out-house, stable, latrine, urinal, sheet house, hut, wall (other than a boundary wall)
or any other structure whether made of masonry, bricks, wood, mud, metal or other material;

(c) “dry latrine” means a latrine other than a water-seal latrine;

(d) “environment” includes water, air and land and the inter-relationship which exists among and between water, air and land and human beings, other living creatures, plants, micro-organism and property;

(e) “environmental pollutant” means any solid, liquid or gaseous substance present in such concentration as may be, or tend to be, injurious to environment;

(f) “environmental pollution” means the presence in the environment of any environmental pollutant;

(g) “Executive Authority” means an Executive Authority appointed under sub-section (1) of section 5;

(h) “HUDCO” means the Housing and Urban Development
Corporation Limited, a Government company registered by that name under the Companies Act, 1956 (1 of 1956)

3.
(i) “latrine” means a place set apart for defecation together with the structure comprising such place, the receptacle therein for collection of human excreta and the fittings and apparatus, if any, connected therewith;

(j) “manual scavenger” means a person engaged in or employed for manually carrying human excreta and the expression
“manual scavenging” shall be construed accordingly;

(k) “notification” means a notification published in the
Official Gazette;

(l) “prescribed” means prescribed by rules made under this
Act;

(m) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239.of the Constitution;

(n) “water-seal latrine” means a pour-flush latrine, water flush latrine or a sanitary latrine with a minimum water-seal of 20 millimetres diameter in which human excreta is pushed in or flushed by water.

CHAPTER IIESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL

.

 

3. Establishment of Tribunal. (1) The Central Government shall by notification, establish one or more Tribunals, to be known as the
Debts Recovery Tribunal, to exercise the jurisdiction; powers and authority conferred on such Tribunal by or under this Act.

(2) The Central Government shall also specify, in the notification referred to in sub-section (1), the areas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applications filed before .

4. Composition of Tribunal. (1) A Tribunal shall consist of one person only (hereinafter referred to as the Presiding Officer) to be appointed, by notification, by the Central Government.

(2) Notwithstanding anything contained in sub-section (1), the
Central Government may authorise the Presiding Officer of one Tribunal to discharge also the functions of the Presiding Officer of another
Tribunal..

5. Qualifications for appointment as Presiding Officer. A
person shall not be qualified for appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, a
District Judge.

6. Terms of office. The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of 1*[sixty-two years], whichever is earlier.

7. Staff of Tribunal. (1) The Central Government shall provide the Tribunal with a Recovery Officer and such other officers and employees as that Government may think fit.

(2) The Recovery Officer and other officers and employees of a
Tribunal shall discharge their functions under the general superinten-
dence of the Presiding Officer.

(3) The salaries and allowances and other conditions of service of the Recovery Officer and other officers and employees of a Tribunal shall be such as may be prescribed.

8.Establishment of Appellate Tribunal.

8. Establishment of Appellate Tribunal. (1) The Central
Government shall, by notification, establish one or more Appellate
Tribunals, to be known as the Debts Recovery Appellate Tribunal, to exercise the jurisdiction, powers and authority conferred on such
Tribunal by or under this Act.

1 Subs. by Act 28 of 1995, s. 2.
4.(2) The Central Government shall also specify in the notification referred to in sub-section (1) the Tribunals in relation to which the Appellate Tribunal may exercise jurisdiction.
.

9. Composition of Appellate Tribunal. An Appellate Tribunal shall consist of one person only (hereinafter referred to as the
Presiding Officer of the Appellate Tribunal) to be appointed, by notification, by the Central Government..

10. Qualifications for appointment as Presiding Officer of the
Appellate Tribunal. A person shall not be qualified for appointment as the Presiding Officer of an Appellate Tribunal unless he-

(a) is, or has been, or is qualified to be, a Judge of a
High Court; or

(b) has been a member of the Indian Legal Service and has held a post in Grade I of that Service for at least three years; or

(c) has held office as the Presiding Officer of a Tribunal for at least three years.

11.Term of office.

11. Term of office. The Presiding Officer of an Appellate
Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of 1*[sixty-
five years,] whichever is earlier.

12.Staff of the Appellate Tribunal.

12. Staff of the Appellate Tribunal. The provisions of section 7.(except those relating to Recovery Officer) shall, so far as may be apply to any Appellate Tribunal as they apply to a Tribunal and accordingly references in that section to “Tribunal” shall be construed as references to “Appellate Tribunal” and references to
“Recovery Officer” shall be deemed to have been omitted.

13. Salary and allowances and other terms and conditions of service of Presiding Officers. The salary and allowances payable to and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Presiding Officer of a
Tribunal or an Appellate Tribunal, shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of the said Presiding Officers shall be varied to their disadvantage after appointment..

14. Filling up of vacancies. If, for any reason other than temporary absence, any vacancy occurs in the office of the Presiding
Officer of a Tribunal or an Appellate Tribunal, then the Central
Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Tribunal or the Appellate Tribunal from the stage at which the vacancy is filled.l.

15. Resignation and removal. (1) The Presiding Officer of a
Tribunal or an Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office:

Provided that the said Presiding Officer shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

1 Subs. by Act 28 of 1995, s. 3.5.(2) The Presiding officer of a Tribunal or an Appellate Tribunal shall not be removed from his office except by an order made by the
Central Government on the ground of proved misbehaviour or incapacity after inquiry,-

(a) in the case of the Presiding Officer of a Tribunal, made by a Judge of a High Court;

(b) in the case of the Presiding Officer of an Appellate
Tribunal, made by a Judge of the Supreme Court,

in which the Presiding Officer concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges.

(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the aforesaid
Presiding Officer.

16.Orders constituting Tribunal or an Appellate Tribunal to be final andnot to invalidate its proceedings.

16. Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its proceedings. No order of the Central
Government appointing any person as the Presiding Officer of a
Tribunal or an Appellate Tribunal shall be called in question in any manner, and no act or proceeding before a Tribunal or an Appellate
Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Tribunal or an Appellate
Tribunal.

CHAPTER IiIPROHIBITION OF EMPLOYMENT OF MANUAL SCAVENGERS, ETC.

 

3.Prohibition of employment of manual scavengers, etc.

3. Prohibition of employment of manual scavengers, etc (1)
Subject to sub-section (2) and the other provisions of this Act, with effect from such date and in such area as the State Government may, by notification, specify in this behalf, no person shall-

(a) engage in or employ for or permit to be engaged in or employed for any other person for manually carrying human excreta; or

(b) construct or maintain a dry latrine.

(2) The State Government shall not issue a notification under sub-section (1) unless-

(i) it has, by notification, given not less than ninety days notice of its intention to do so;

(ii) adequate facilities for the use of water-seal latrines in that area exist; and

(iii) it is necessary or expedient to do so for the protection and improvement of the environment or public health in that area.

4.Power to exempt.

4. Power to exempt. The State Government may, by a general or special order published in the Official Gazette, and upon such conditions, if any, as it may think fit to impose, exempt any area, category of buildings or class of persons from any provisions of this
Act or from any specified requirement contained in this Act or any rule, order, notification or scheme made thereunder or dispense with the observance of any such requirement in a class or classes of cases, if it is satisfied that compliance with such provisions or such requirement is or ought to be exempted or dispensed with in the circumstances of the case.

 

CHAPTER IVIMPLEMENTING AUTHORITIES AND SCHEMES

 

5.Appointment of Executive Authorities and their powers and functions.

5. Appointment of Executive Authorities and their powers and functions. (1) The State Government may, by order published in the
Official Gazette, appoint a District Magistrate or a Sub-Divisional
Magistrate, as an Executive Authority to exercise jurisdiction within such area as may be specified in the order and confer such powers and impose such duties on him, as may be necessary to ensure that the provisions of this Act are properly carried out and the Executive
Authority may specify the officer or officers, subordinate to him, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed and the local limits within which such powers or duties shall be carried out by the officer or officers so specified.

(2) The Executive Authority appointed under sub-section (1) and the officer or officers specified under that sub-section shall, as far as practicable, try to rehabilitate and promote the welfare of the persons who were engaged in or

4.employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued by securing and protecting their economic interests.

6.Power of State Government to make schemes.

6. Power of State Government to make schemes. (1) The State
Government may, by notification, make one or more schemes for regulating conversion of dry latrines into, or construction and maintenance of, water-seal latrines, rehabilitation of the persons who were engaged in or employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued in gainful employment and administration of such schemes and different schemes may be made in relation to different areas and for different purposes of this Act:

Provided that no such scheme as involving financial assistance from the HUDCO shall be made without consulting it.

(2) In particular, and without prejudice to the generality of the foregoing power, such schemes may provide for all or any of the following matters, namely:-

(a) time-bound phased programme for the conversion of dry latrines into water-seal latrines;

(b) provision of technical or financial assistance for new or alternate low cost sanitation to local bodies or other agencies;

(c) construction and maintenance of community latrines and regulation of their use on pay and use basis;

(d) construction and maintenance of shared latrines in slum areas or for the benefit of socially and economically backward classes of citizens;

(e) registration of manual scavengers and their rehabilitation;

(f) specification and standards of water-seal latrines;

(g) procedure for conversion of dry latrines into water-
seal latrines;

(h) licensing for collection of fees in respect of community latrines or shared latrines.

7.Power of State Government to issue directions.

7. Power of State Government to issue directions.
Notwithstanding anything contained in any other law but subject to the other provisions of this Act, the State Government may, in the exercise of its powers and performance of its functions under this
Act, issue directions in writing to any person, officer or local or other authority and such person, officer or a local or other authority shall be bound to comply with such directions.

8.Executive Authorities, inspectors, officers and other employees ofsuch authorities to be public servants.

8. Executive Authorities, inspectors, officers and other employees of such authorities to be public servants. All Executive
Authorities, all officers and other employees of such authorities including the officers authorised under sub-section (1) of section 5, all inspectors appointed under sub-section (1) of section 9 and all officers and other employees authorised to execute a scheme or order made under this Act, when acting or purporting to act in pursuance of any provisions of this Act or the rules or schemes made or orders or directions issued thereunder, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of
1860).

9.Appointment of inspectors and their powers of entry and inspection.

9. Appointment of inspectors and their powers of entry and inspection. (1) The State Government may, by notification, appoint such persons as it may think fit to be inspectors for the purposes of this Act, and define the local limits within which they shall exercise their powers under this Act.

(2) Every inspector within the local limits of jurisdiction of an Executive Authority shall be subordinate to such authority.

(3) Subject to any rules made in this behalf by the State
Government, an inspector may, within the local limits of his jurisdiction, enter, at all reasonable times, with such assistance as he considers necessary, any place for the purpose of-

(a) performing any of the functions of the Executive
Authority entrusted to him;

5.(b) determining whether and if so in what manner, any such functions are to be performed or whether any provisions of this Act or the rules, orders or schemes made thereunder or any notice, order, direction or authorisation served, made, given or granted under this Act is being or has been complied with;

(c) examining and testing any latrine, or for conducting an inspection of any building in which he has reason to believe that an offence under this Act or the rules, orders or schemes made thereunder has been or is being or is about to be committed and to prevent or mitigate environmental pollution.

10.Power of Executive Authority to prevent environmental pollution incertain cases.

10. Power of Executive Authority to prevent environmental pollution in certain cases. (1) On receipt of information with respect to the fact or apprehension of any occurrence of contravention of the provisions of section 3, whether through intimation by some person or on a report of the inspector or otherwise, the Executive
Authority shall, as early as practicable, besides taking any other action under this Act, direct the owner or occupier of the premises to take such remedial measures, as may be necessary, within such reasonable time as may be specified therein and in case the owner or occupier, as the case may be, fails to comply with such directions, cause such remedial measures to be taken as are necessary to prevent or mitigate the environmental pollution at the cost of such owner or occupier of the premises.

(2) The expenses, if any, incurred by the Executive Authority with respect to the remedial measures referred to in sub-section (1), together with interest at such rate as the State Government may specify from the date when a demand for the expenses is made until it is paid, may be recovered by such authority or agency from the person concerned as arrears of land revenue or of public demand.

11.Duty of HUDCO to extend financial assistance in certain cases.

11. Duty of HUDCO to extend financial assistance in certain cases. (1) Notwithstanding anything contained in its Memorandum of
Association or Articles of Association or schemes for the grant of loans for housing and urban development, it shall be the duty of HUDCO
to extend, in suitable cases, financial assistance for the implementation of such schemes for the construction of water-seal latrines as may be made under section 6.(2) The financial assistance referred to in sub-section (1) may be extended by HUDCO on such terms and conditions (including on easy and concessional rates of interest) and in such manner as It may think fit in each case or class of cases.

12.Power to levy fee.

12. Power to levy fee. Any order or scheme which the State
Government is empowered to make under this Act may, notwithstanding the absence of any express provision to that effect, provide for levy of fees in respect of-

(a) community latrines constructed under a scheme on pay and use basis; or

(b) shared latrines constructed under a scheme; or

(c) supply of copies of documents or orders or extracts thereof; or

(d) licensing of contractors for construction of water-seal latrines; or

(e) any other purpose or matter involving rendering of service by any officer, committee or authority under this Act or any rule, direction, order or scheme made thereunder:

Provided that the State Government may, if it considers necessary so to do, in the public interest, by general or special order published in the Offical Gazette, grant exemption on such grounds as it deems fit from the payment of any such fee either in part or in full.

6.13.Constitution of committees.

13. Constitution of committees. (1) The Central Government may, by notification, constitute-

(a) one or more Project Committees for appraising of the schemes for the construction of water-seal latrines in the country;

(b) one or more Monitoring Committees to monitor the progress of such schemes;

(c) such other committees for such purposes of the Act and with such names as the Central Government may deem fit.

(2) The composition of the committees constituted by the Central
Government, the powers and functions thereof, the terms and conditions of appointment of the members of such committees and other matters connected therewith shall be such as the Central Government may prescribe.

(3) The members of the committees under sub-section (1) shall be paid such fees and allowances for attending the meetings as may be prescribed.

(4) The State Government may, by notification, constitute-

(a) one or more State Co-ordination Committees for coordinating and monitoring of the programmes for the construction of water-seal latrines in the State and rehabilitation of the persons who were engaged in or employed for as manual scavengers in any area in respect of which a notification under sub-section (1) of section 3 has been issued;

(b) such other committees for such purpose of the Act and with such names as the State Government may deem fit.

(5) The composition of the committees constituted by the State
Government the powers and functions thereof, the terms and conditions of the members of such committees and other matters connected therewith shall be such as the State Government may prescribe.

(6) The members of the committees under sub-section (4) shall be paid such fees and allowances for attending the meetings as may be prescribed.

 

CHAPTER VJURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS

 

17.Jurisdiction, powers and authority of Tribunals.

 

17. Jurisdiction, powers and authority of Tribunals. (1) A
Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applica-
tions from the banks and financial institutions for recovery of debts due to such banks and financial institutions.

(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain appeals against any order made, or deemed to have been made, by a
Tribunal under this Act.

18.Bar of jurisdiction.

18. Bar of jurisdiction. On and from the appointed day, no court or other authority shall have, or be entitled to exercise, any jurisdiction, powers or authority (except the Supreme Court, and a
High Court exercising jurisdiction under articles 226 and 227 of the
Constitution) in relation to the matters specified in section

CHAPTER VIPENALTIES AND PROCEDURE

14.Penalty for contravention of the provisions of the Act and rules,orders, directions and schemes.

 

14. Penalty for contravention of the provisions of the Act and rules, orders, directions and schemes. Whoever fails to comply with or contravenes any of the provisions of this Act, or the rules or schemes made or orders or directions issued thereunder, shall, in respect of each such failure or contravention be punishable with imprisonment for a term which may extend to one year or with fine, which may extend to two thousand rupees, or with both, and in case the failure or contravention continues, with additional fine which may extend to one hundred rupees for every day during which such failure or contravention continues after the conviction for the first such failure or contravention.

15.Offences by companies.

15. Offences by companies. (1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or such other officer of the company, such

7.director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

16.Offences to be cognizable.

16. Offences to be cognizable. Notwithstanding anything contained in the Code of Criminal Procedure 1973 (2 of 1974), every offence under this Act shall be cognizable.

17.Provision in relation to jurisdiction.

17. Provision in relation to jurisdiction. (1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence under this Act.

(2) No prosecution for any offence under this Act shall be instituted except by or with the previous sanction of the Executive
Authority.

(3) No court shall take cognizance of any offence under this Act except upon a complaint made by a person generally or specially authorised in this behalf by the Executive Authority.

18.Limitation of prosecution.

18. Limitation of prosecution. No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of the complainant.

 

CHAPTER VII

PROCEDURE OF TRIBUNALS

19.Application to the Tribunal.

19. Application to the Tribunal. (1) Where a bank or a financial institution has to recover any debt from any person, it may make an application to the Tribunal within the local limits of whose jurisdiction,–

(a) the defendant, or each of the defendants where there are more than one, at the time of making the application, actually and

6.voluntarily resides, or carries on business, or personally works for gain; or

(b) any of the defendants, where there are more than one, at the time of making the application, actually and voluntarily resides or carries on business, or personally works for gain; or

(c) the cause of action, wholly or in part, arises.

(2) Every application under sub-section (1) shall be in such form and be accompanied by such documents or other evidence and by such fee for filing the application as may be prescribed:

Provided that the fee may be prescribed having regard to the amount of debt to be recovered:

Provided further that nothing contained in this sub-section relating to fee shall apply to cases transferred to the Tribunal under sub-section (1) of section 31.(3) On receipt of the application under sub-section (1), the
Tribunal shall issue summons requiring the defendant to show cause within thirty days of the service of summons as to why the relief prayed for should not be granted.

(4) The Tribunal may, after giving the applicant and the defendant an opportunity of being heard, pass such orders on the application as it thinks fit to meet the ends of justice.

(5) The Tribunal shall send a copy of every order passed by it to the applicant and the defendant.

(6) The Tribunal may make an interim order (whether by way of injunction or stay) against the defendant to debar him from transfer-
ring, alienating or otherwise dealing with, or disposing of, any property and assets belonging to him without the prior permission of the Tribunal.

(7) The Presiding Officer shall issue a certificate under his signatures on the basis of the order of the Tribunal, to the Recovery
Officer for recovery of the amount of debt specified in the certificate.

(8) The application made to the Tribunal under sub-section (1)
shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the application finally within six months from the date of receipt of the application.

20.Appeal to the Appellate Tribunal.

20. Appeal to the Appellate Tribunal. (1) Save as provided in sub-section (2), any person aggrieved by an order made, or deemed to have been made, by a Tribunal under this Act, may prefer an appeal to an Appellate Tribunal having jurisdiction, in the matter.

(2) No appeal shall lie to the Appellate Tribunal from an order made by a Tribunal with the consent of the parties.

(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made, or deemed to have been made, by the Tribunal is received by him and it shall be in such form and be accompanied by such fee as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

(4) On receipt of an appeal under sub-section (1), the Appellate
Tribunal may, after giving the parties to the appeal, an opportunity of

7.being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.

(5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Tribunal.

(6) The appeal filed before the Appellate Tribunal under sub-
section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal.

21.Deposit of amount of debt due, on filing appeal.

21. Deposit of amount of debt due, on filing appeal. Where, an appeal is preferred by any person from whom the amount of debt is due to a bank or a financial institution or a consortium of banks or financial institutions, such appeal shall not be entertained by the
Appellate Tribunal unless such person has deposited with the Appellate
Tribunal seventy-five per cent. of the amount of debt so due from him as determined by the Tribunal under section 19:

Provided that the Appellate Tribunal may, for reasons to be re-
corded in writing, waive or reduce the amount to be deposited under this section.

22.Procedure and powers of the Tribunal and the Appellate Tribunal.

22. Procedure and powers of the Tribunal and the Appellate
Tribunal. (1) The Tribunal and the Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908.(5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the
Tribunal and the Appellate Tribunal shall have powers to regulate their own procedure including the places at which they shall have their sittings.

(2) The Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:-

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing corn-missions for the examination of witnesses or documents;

(e) reviewing its decisions;

(f) dismissing an application for default or deciding it ex parte;

(g) setting aside any order of dismissal of any application for default or any order passed by it ex parte;

(h) any other matter which may be prescribed.

(3) Any proceeding before the Tribunal or the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the
Indian Penal Code (45 of 1860) and the Tribunal or the Appellate
Tribunal shall be deemed to be a civil court for all the purposes, of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.(2 of 1974).

23.Right to legal representation and Presenting Officers.

23. Right to legal representation and Presenting Officers. (1) A
bank or a financial institution making an application to a Tribunal or an appeal to an Appellate Tribunal may authorise one or more legal practitioners_or any of its officers to act as Presenting Officers, and every person so authorised by it may present its case before the
Tribunal or the Appellate Tribunal.

8.(2) The defendant may either appear in person or authorise one or more legal practitioners or any of his or its officers to present his or its case before the Tribunal or the Appellate Tribunal.

24.Limitation.

24. Limitation. The provisions of the Limitation Act, 1963 (36.of 1963), shall, as far as may be, apply to an application made to a
Tribunal.

CHAPTER VIII

RECOVERY OF DEBT DETERMINED By TRIBUNAL

25.Modes of recovery of debts.

25. Modes of recovery of debts. The Recovery Officer shall, on receipt of the copy of the certificate under sub-section (7) of section 19, proceed to recover the amount of debt specified in the certificate by one or more of the following modes, namely: –

(a) attachment and sale of the movable or immovable property of the defendant;

(b) arrest of the defendant and his detention in prison;

(c) appointing a receiver for the management of the movable or immovable properties of the defendant.

26.Validity of certificate and amendment thereof.

26. Validity of certificate and amendment thereof. (1) It shall not be open to the defendant to dispute before the Recovery Officer the correctness of the amount specified in the certificate, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery
Officer, the Presiding Officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.

(3) The Presiding Officer shall intimate to the Recovery Officer any order withdrawing or cancelling a certificate or any correction made by him under sub-section (2).

27.Stay of proceedings under certificate and amendment or withdrawalthereof.

27. Stay of proceedings under certificate and amendment or withdrawal thereof. (1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the
Presiding Officer may grant time for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.

(2) Where a certificate for the recovery of amount has been issued, the Presiding Officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate to the Recovery Officer.

(3) Where the order giving rise to a demand of amount for recovery of debt has been modified in appeal, and, as a consequence thereof the demand is reduced, the Presiding Officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal remains pending.

(4) Where a certificate for the recovery of debt has been received by the Recovery Officer and subsequently the amount of the outstanding demands is reduced as a result of an appeal, the Presiding officer shall, when the order which was the subject matter of such appeal has become final and conclusive, amend the certificate or withdraw it, as the case may be.

9.28.Other modes of recovery.

28. Other modes of recovery. (1) Where a certificate has been issued to the Recovery Officer under sub-section (7) of section 19, the Recovery Officer may, without prejudice to the modes of recovery specified in section 25, recover the amount of debt by any one or more of the modes provided under this section.

(2) If any amount is due from any person to the defendant, the
Recovery Officer may require such person to deduct from the said amount, the amount of debt due from the defendant under this Act and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Recovery Officer:

Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5.of 1908).

(3) (i) The Recovery Officer may, at any time or from time to time, by notice in writing, require any person from whom money is due or may become due to the defendant or to any person who holds or may subsequently hold money for or on account of the defendant, to pay to the Recovery Officer either forthwith upon the money becoming due or being held or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount of debt due from the defendant or the whole of the money when it is equal to or less than that amount.

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the defendant jointly with any other person and for the purposes of this sub-section, the shares of the joint holders in such amount shall be presumed, until the contrary is proved, to be equal.

(iii) A copy of the notice shall be forwarded to the defendant at his last address known to the Recovery Officer and in the case of a joint account to all the joint holders at their last addresses known to the Recovery Officer.

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular. where any such notice is issued to a post office, bank, financial institution, or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like to be made before the payment is made notwithstanding any rule, practice or requirement to the contrary.

(v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice.

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or the part thereof is not due to the defendant or that he does not hold any money for or on account of the defendant, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable, to the Recovery Officer to the extent of his own liability to the defendant on the date of the notice, or to the extent of the defendants liability for any sum due under this
Act, whichever is less,

10.(vii) The Recovery Officer may, at any time or from time to time, amend or revoke any notice under this sub-section or extend the time for making any payment in pursuance of such notice.

(viii) The Recovery Officer shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the defendant to the extent of the amount so paid.

(ix) Any person discharging any liability to the defendant after the receipt of a notice under this sub-section shall be personally liable to the Recovery Officer to the extent of his own liability to the defendant so discharged or to the extent of the defendants liability for any debt due under this Act, whichever is less.

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Recovery
Officer, he shall be deemed to be a defendant in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were a debt due from him, in the manner provided in sections 25, 26 and 27.and the notice shall have the same effect as an attachment of a debt by the Recovery Officer in exercise of his powers under section 25.(4) The Recovery Officer may apply to the court in whose custody there is money belonging to the defendant for payment to him of the entire amount of such money, or if it is more than the amount of debt due, an amount sufficient to discharge the amount of debt so due.

(5) The Recovery Officer may recover any amount of debt due from the defendant by distraint and sale of his movable property in the manner laid down in the Third Schedule to the Income-tax Act,
1961 (43 of 1961).

29.Application of certain provisions of Income-tax Act.

29. Application of certain provisions of Income-tax Act. The provisions of the Second and Third Schedules to the Income-tax Act,
1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules,
1962, as in force from time to time shall, as far as possible, apply with necessary modifications as if the said provisions and the rules referred to the amount of debt due under this Act instead of to the income-tax:

Provided that any reference, under the said provisions and the rules to the “assessee” shall be construed as a reference to the defendant under this Act.

30.
Orders of Recovery Officer to be deemed as orders of Tribunal.

30. Orders of Recovery Officer to be deemed as orders of
Tribunal. Notwithstanding anything contained in section 29, an order made by the Recovery Officer in exercise of his powers under sections
25 to 28 (both inclusive), shall be deemed to have been made by the
Tribunal and an appeal against such order shall lie to the Appellate
Tribunal.

CHAPTER IX

MISCELLANEOUS

19.Information, reports or returns.

19. Information, reports or returns. The Central Government may, in relation to its functions under this Act, from time to time, require any person, officer, State Government or other authority to furnish to it, any prescribed authority or officer any reports, returns, statistics, accounts and other information as may be deemed necessary and such person, officer, State Government or other authority, as the case may be, shall be bound to do so.

20.Protection of action taken in good faith.

20. Protection of action taken in good faith. No suit, prosecution or other legal proceedings shall lie against the
Government or any officer or other employee of the Government or any authority constituted under this Act or executing any scheme made under this Act or any member, officer or other employee of such authority or authorities in respect of anything which is done or intended to be done in good faith in pursuance of this Act or the rules or schemes made, or the orders or directions issued, thereunder.

21.Effect of other laws and agreements inconsistent with the Act.

21. Effect of other laws and agreements inconsistent with the
Act. (1) Subject to the provisions of sub-section (2), the provisions of this Act, the rules, schemes or Orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act, custom, tradition, contract, agreement or other instrument.

(2) If any act or omission constitutes an offence punishable under this Act and also under any other Act, then, the offender found guilty of such offence shall be liable to be punished under the other
Act and not under this Act.

22.Power of Central Government to make rules.

22. Power of Central Government to make rules. (1) The Central
Government may, by notification, make rules to carry out the provisions of this Act.

8.(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(i) the composition of the Project Committees, Monitoring
Committees and other committees constituted by the Central
Government under sub-section (1) of section 13, the powers and functions thereof, the number of members and their terms and conditions of appointment and other matters connected therewith;

(ii) the fees and allowances to be paid to the members of the committees constituted under sub-section (1) of section
13.(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

23.Power of State Government to make rules.

23. Power of State Government to make rules. (1) The State
Government may, by notification, make rules, not being a matter for which the rules are or required to be made by the Central Government, for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(i) the composition of the State Co-ordination Committees and other committees constituted by the State Government under sub-section (4) of section 13, the powers and functions thereof, the number of members and their terms and conditions of appointment and other matters connected therewith;

(ii) the fees and allowances to be paid to the members of the committees constituted under sub-section (4) of section
13;

(iii) any other matter which is required to be, or may be, prescribed.

(3) Every rule and every scheme made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature.

24.Power to remove difficulties.

24. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the difficulty:

Provided that no such order shall be made in relation to a State after the expiration of three years from the commencement of this Act in that State.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

 

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THE RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993.NO. 51 OF 1993.[27th August, 1993.An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Forty-fourth Year of the
Republic of India as follows:-

CHAP
PRELIMINARY.

CHAPTER I

PRELIMINARY

1.Short title, extent, commencement and application.

1. Short title, extent, commencement and application. (1) This
Act may be called the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993.(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall be deemed to have come into force on the 24th day of
June, 1993.(4) The provisions of this Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central
Government may, by notification, specify.

2.2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,–

(a) “Appellate Tribunal” means an Appellate Tribunal esta-
blished under sub-section (1) of section 8;

(b) “application” means an application made to a Tribunal under section 19;

(c) “appointed day”, in relation to a Tribunal or an
Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) of section 8;

(d) “bank” means-

(i) a banking company;

(ii) a corresponding new bank;

(iii) State Bank of India;

(iv) a subsidiary bank; or

(v) a Regional Rural Bank;

(e) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of
1949)

(f) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949.(10 of 1949)

(g) “debt” means any liability (inclusive of interest) which is alleged as due from any person by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or whether payable under a decree or order of any civil court or otherwise and subsisting on, and legally recoverable on, the date of the application;

(h) “financial institution,, means-

(i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956)

(ii) such other institution as the Central Government may, having regard to its business activity and the area of its operation in India, by notification, specify;

(i) “notification” means a notification published in the
Official Gazette;

(j) “prescribed” means prescribed by rules made under this
Act;

(k) “Recovery Officer” means a Recovery Officer appointed by the Central Government for each Tribunal under sub-section
(1) of section 7;

(l) “Regional Rural Bank” means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act ,
1976 (21 of 1976)

3.(m) “State Bank of India” means the State Bank of India constituted under section 3 of the State Bank of India Act,
1955 (23 of 1955)

(n) “subsidiary bank” shall have the meaning assigned to It in clause (k) of section 2 of the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959)

(o) “Tribunal” means the Tribunal established under sub-
section (1) of section 3.