The ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS (MORATORIUM) ACT, 2004
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**THE ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS**
**(MORATORIUM) ACT, 2004**

**(ACT NO. 3 OF 2004)**

**ARRANGEMENT OF SECTIONS**

**Sections**

1. Short title, extent and commencement

2. Declaration

3. Definitions

4. Declaration of Moratorium

5. Bar of Jurisdiction

6. Effect of other laws

7. Power to remove difficulties

8. Power to make rules


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**THE ANDHRA PRADESH FARMERS AGRICULTURAL DEBTS**
**(MORATORIUM) ACT, 2004**

**(ACT NO. 3 OF 2004)**

(13[th] July, 2004)

**AN ACT TO PROVIDE TO DECLARE MORATORIUM ON FARM**
**RELATED DEBTS IN THE STATE OF ANDHRA PRADESH AND FOR**
**MATTERS CONNECTED THEREWITH AND INCIDENTAL THERETO.**

Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Fifty-fifth Year of the Republic of India as follows:
**1.Short title, extent and commencement - (1) This Act may be called the Andhra**
Pradesh Farmers Agricultural Debts (Moratorium) Act, 2004.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the State Government may, by
notification, in the Andhra Pradesh Gazette, appoint.

**2. Declaration – It is hereby declared that this Act is for giving effect to the policy of the**
State towards securing the principles specified in article 46 of the Constitution.

**3. Definitions – In this Act, unless the context otherwise requires, -**

(a) ‘agriculture’ with its grammatical variations and cognate expressions
includes,
(i) horticulture;
(ii) the raising of crops (including plantation crops), grass or garden
produce;
(iii) dairy farming;
(iv) poultry farming;
(v) breeding of live stock and bees;
(vi) grazing;

(b) ‘agricultural land’ means land used for purposes of agriculture and
which is assessed by the Government to land revenue but not being land
appurtenant to a residential building situate within a Municipality or
Cantonment;


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(c) ‘Creditor’ means a person but does not include a Commercial Bank
established under the Banking Regulation Act, 1949 or a Co-operative
Credit institution registered under the Andhra Pradesh Co-operative
Societies Act, 1964 (Act 7 of 1964) or the Andhra Pradesh Mutually Aided
Co-operative Societies Act, 1995 (Act No.30 of 1995) from or in respect of
whom the debtor has borrowed or incurred a debt and includes his heirs,
legal representatives and assigns;

(d) ‘debt’ includes any liability owing to a creditor in cash or in kind, whether
secured or unsecured payable to any Money lender or to a creditor;

(e) ‘Money Lender’ means a person but does not include a Commercial Bank
established under the Banking Regulation Act, 1949 or a Co-operative
Credit Institution registered under the Andhra Pradesh Co-operative
societies Act, 1964 or the Andhra Pradesh Mutually Aided Co-operative
Societies Act, 1995 whose main or subsidiary occupation in a business of
advancing and realizing loans or acceptance of deposits in course of such
business;

(f) ‘Moratorium’ means a legal authorisation to a debtor to postpone
payment for a certain time.

**4. Declaration of Moratorium – Notwithstanding anything contained in any other law**
for the time being in force or any contract or other instrument having the force of law with
effect from the commencement of this Act, every debt borrowed or incurred and including
interest thereon for the purpose of agriculture and cultivation of agricultural land from a
creditor or a money lender, a moratorium shall be declared for a period of six months
from the date of commencement of this Act.

**5. Bar of Jurisdiction - No Civil Court shall entertain any suit or other proceeding**
against the debtor for the recovery of any amount of the debt borrowed or incurred
including interest, thereon for which a moratorium has been declared under Section (4).

Provided that where any suit or other proceeding is instituted jointly against the
debtor and any other person nothing in this section shall apply to the maintainability of
such suit or proceeding in so far as it relates to such other person.

**6. Effect of other laws – Save as otherwise provided in this Act, the provisions of this Act**
shall be in addition to and not in derogation of any other law for the time being in force.

**7. Power to remove difficulties – If any difficulty arises in giving effect to the provisions**
of this Act, the Government may, by general or special order publish in the Andhra
Pradesh Gazette make such provisions not inconsistent with the provisions of this Act, as
appear to them to be necessary or expedient for the removal of the difficulty.


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**8. Power to make rules – (1) The State Government may, by notification in the Andhra**
Pradesh Gazette, make rules for carrying out all or any of the purposes of this Act.

(2) Every rule made under this Act, shall, immediately after it is made, be laid
before the Legislative Assembly of the State, if it is in session and if it is not in session in
the session immediately following for a total period of fourteen days which may be
comprised in one session or in two successive sessions, and if, before the expiration of the
session in which it is so laid or the session immediately following the Legislative Assembly
agrees in making any modification in the rule or in the annulment of the rule, the rule
shall from the date on which the modification or annulment is notified, have effect only in
such modified form or shall stand annulled as the case may be, so however, at any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule.

**K.G.SHANKAR,**
**Secretary to Government,**
**Legislative Affairs & Justice (FAC),**
**Law Department.**


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