The ASSAM DISPLACED PERSONS (REHABILITATION LOANS) ACT, 1951
ASSAM. ACT XVI OF 1951

*THE ASSAM DISPLACED PERSONS (REHABIUITATION LOANSJ

ACT, 1951

[Published in the "Assam Gazette", dated the 20th June 1951]

An Ad to provide for loaus to displaced persm1s for their i·ebabilitatioDI

Whereas it is expedient to provide for the grant and recovery of loans to
displaced persons for their rehabilitation :

###### It is hereby enacted as follows :

. 1. Short title, extent and commencement..- (1) This Act may be called
the Assam Displaced Persons (Rehabilitation Loans) Act, 1951.
(2) It extents to the whole of Assam.
(3) It shall come into force at <mce.

2. . l)efinitions.-In this Act, unless there is anything repugnant in the

subject or context,-
(a) "Borrower" means a displaced person, to whom a Joan bas been

&ranted under this Act and includes the heirs, succefisors, assigns and the sureties
of a borrower ;
(b) "Deputy Com.missioner" means th~ Deputy Commissioner of th~

District;
(c) "Displaced person" means (i) any person who on account of setting
up of the two Dominions of India and Pakistan or on account of civil disturbances
or the fear· of such disturbances in any area now forming part of India or. Pakis-

tan has been displaced from or compelled to leave his place of residence in such
area after the [Prescribed date] [1 ] and who has subsequently been residing in India;
and is in distress.

*For Statement of Objects .and Reasons _see_ "Assam Gazette", 1951, Part V,

page 24.
1 Substituted by the Assam Displaced Persons (Rehabilitatioo Loans),'

(Amendment) Act, 1951 (Act XX of 1951) for "first day of March.

###### J9.41".


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(i) an association, corporatecl or incorporated, formed by several such per-

sons as defined in (i) above ;

(d) "Government" means the Government of the State of Assam;
(e) "Loan" means a loan granted or deemed to have been granted, under

the provisions- of this Act either in cash or in kind or partly in cash and partly
in kind ;

(0 "Relief and Rehabilitation Commis~ioner" means an Officer appointed

as sucb by the Government.

(gl "Prescribt·d" m c::ans prescribed bv rules made under this Act.
_(h_1_ "Sanctio11ing Authority" me:rns tte authority wbo sanctions a loan;
1 (i) "Prescribed date"
(J) in relation to a person displaced from or compelled to leave his place

of residence 111 any area now forming part of East Bengal, means
the fifteenth day ot October, 1946.
(2) in relation to a person displaced from or compelled to leave his place

of i·csidc nce i !1 any area now for ming part of Pakistan other than East
Bengal, mciliE tbe fitst clay _of_ Marcil, 1947.
(3) in ~·elafinn to a _pe_         - ~; ::;.n dis~lac.:;; J tror,1 or compelled to leave his plac\;

of re.~i<l nee in i:l.n y arm ncn' ' formjrig part of India, means the first
d;::y of January, 1950 }2 .

3. Apph :atk .: for Priw,-A displan:d p~r~on may s11omit to the Deputy

Commissioner within whose jurisdiction he in tends to reside or to carry on his
trade, professim1 or calling, an application for loan on '.\uch form as may be
prescribed;

4. Gr~mt of fo,'.ms,-(! ) Tb~ Deputy Commissioner or such other ofhcer
as may be empowersd by the Goverrme1t in this behalf may, subject to any
general or special direction of t:1c Governme nt, sanction loans not excc~eding such
limit as may be fo;ecl by the Grwr.rwn~n t from t:me to time.

(2) Tb e Rdief r.na R.eirnbi!itation Com missio1ier may, subject to any

ge neral or sp ::;cial di rcctioll of 1:1e Government,    - a nction loans not exceeding such
limit as may be fi;;.ed by Government.

The Deputy Commis<>ion cr shall forward to the Relief and Rehabihtation
Ccimmissioncr with bis re rn arks such applications as require loans exceeding
the amount he is autbonsed to f;anction.

5. Execution of loan buml-Before receiving payment of the loan the
borrower shall execuk a bond i ;1 the prescribed form undertaking to apply the
money for the purpose for which, and to comply with the terms and conditions
on which, the loan is sanctiond.

6. Security fo1· Ioar:.--(1) All assets purchased with or created trom the
Joan shall be deemerl to be n°0rtgaged or hypothecated, as the case may he, to
Government for the repav;nent of the loan with intercgt due thereon and the
amount of the Joan and the interest thereon shall be ~he first charge on such
assets.
(2) Subject to sub-sec-tim1 (1) al:>OVf\ t!i e borrower shall not without the
prior approval of the sanctioning authority mortgage, convey or otherwise trans-
fer any of his interests in the whole er any part of the assets purchased with or
created from the loan :

Provided that no~hin g in this ~ec ti o n sh..ill affect the borrower's right to sell

such articles of his stock-in-trade as are meant for sale to customers in the normal
course of business.

2 Inserted by Assam Act XX of 1951.


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384

7. Inspection of assets.-Any person authorised in this behalf by the sanc-

tioning authority may enter any place or premises for inspecting any land, cons-
tructions, machineries, appliances, materials or stock-in-trade purchase, hired or
created or 'Proposed to be purchased, hired or created by any borrower with the
loan granted to him.
8. Power fo require re-payment before due period.-Notwithstanding any

other . provision to the contrary in this Act or in the rules made- thereunder or
in any agreement, the sanctioning authority or such other authority as may be
empowered by Government so to do may, after giving the borrower an opportu-

nity to show cause, order the borrower to repay the loan in full or any part of it,
with interest, within such time as may be specified in the order under one or
more of the following provisions :-

(i) if the borrower supplied any· false or misleading information or sup-

pressed any fact in obtaining the loan ;

{ii) if the borrower fails to comply with the terms and conditions t•nder

which the loan has been sanctioned ;

(iii) if the sar.ctioning authority is satisfied that the borrower has applied

any porti011 of the Joan for purposes other than that for which it was granted ;

, (iv) if the borrower has wilfully or by negligence caused material dete-

rioration to the assets purchased with or created from the loan ; _ot_

(v) if the sanctioning authority considers it essential to effect immediate

j recovery. of .the Joan in order to protect the interest of Government.

## : l contained 9. P-0wer in this fo Act postporw or the rules rcfi!i~atfomadn ·or e thereunder fo wriitc off.-N :- otwithstanding anything ,

(a) The Government or such other authority as may be prescribed may

postpone the realization of any instalment of the loan ;
(b) Government may write off any portion of the loan or of any interest

thereo n.

10. Power fo mllke recovery or fto hike over 2ssets.-If the borrower fails
to repay any amount of the loan or to pay any interest thereon under the terms
and conditions of the loan or under the provi&ionfi of section 9, the Deputy Com-

missioner may (a) recover as arrears of land revenue such loan, instalment, inte-
rest or any cost incurred in recovering the loan with interest and also incidental ~ .

expenses incurred in issuing the loan ;
(b) take over in whole or in · part the assets purchased with or created ·

from th::: lonn on such term and conditions as may be fixed by Government.

11.. Delegation of powers.-Subject to the provisions of this Act the Gov~

ernnicnt may by order delegate all or any of its powe rs,           - uties and functions·
under this Act or the rules made thereunder to airy Otlicer under its control.
12. Protection cf action taken llllder the Act.-No sujt, prosecution or other
legal proceedings shall lie against any person for anything ,in good · faith done
or intended to be done in pursua1ice of this Act, or any rules or order made
thereunder.

13. RemissiOn of stim:11p                - duty and registration foe.-The Government may
by notification in the offici ;:;J Gazette remit the stamp duty under· any law for
the time being in force or any fee under the law of registration for the time being '
in force, chargeable on any in strument executed under this Act or the rules made
thereunder by or on behalf of a displaced person.

14. Retroi;:pectivc Application o~ t~e Act to prior foans.-(1)1 Every lo·an

granted since the first day of April 1949 to a displaced· person for his rehabili- ,
tation by any Officer or authority subordinate to Government shall for the pur-
pese of its recovery be d~emect to be a loan granted under this Act and the pro-
visfons of this Act shall _mutatis mutandis_ apply to such Joan as they apply to .

a loan granted under this Act.

isection 14 renumbered as sub-section (1) and a new sub-section (2) inserted
by the Assam Displaced Persons (Rehabilitation Loans) (Amendment)
Act, 1953. ..


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~- ' [:(2) Every loan. gr.anted ih the District of Cachar between the fifteenth day

. S• of April, -1950, and the actual date of transfer of the adminisration of relief and

~r r~habihta.ti0n of displaced persons in the district of Cachar from the Government

LC of India ti) the Go~ermnent · of Assam to -a displaced person for his rehabilitation

~y or ·on behalf of the Government of India. shall, for the purpose of its recovery,

###### fY be deemed to be a loan granted under this Act and the urovisions of this Act

~ r shall _mutatis mutandis_ apply to ' such a loan granted under this Act.] [1 ]

e

15. **Power -to** **make_ rules.-(1)** Tbe Government may make rules for carry-

ing out the purposes of this Act.

###### [t: (2) In particular, and without prejudice to the generality of the foregoing
'r . provisions, such rules may prnvide for all or any of the following matters,

###### namely:-
 p- (a) . the fornis of application for loan, order of the sanctioning authority,

the' e0nd and any oth~r 'instrnment to be executed by the borrower and the

er notices and directions by the sanctioning authority and other authorities ;

(b) the terms and conditions of loans and fixation of instalments ;

ld                            - (c) the fixation of the rate of interest and the manner of calculation

                      - hereof;

**fl' ..**

                                        - ~                                        - (d} the ext~nt, and manner of issue, of loans and · the procedure !or

I realization ; ~ '                                                                   - ,
te                          - (e) the :;fQrm and manner in. which accounts and registers are to be

maintained ; ·

tg                           -                           - (f). the manner and circumstances in which remiss.ion of principal or intc~
###### l rest may -be granted and suspension of realization may be allowed;

y

                                                                         - (g) the                                                                          - anner in vvhich and the authority to whom appeals against oractll
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