Amendment status not verified — confirm the current text below against the official source.
Definitions.—In this Act, unless the context otherwise requires,— (1) “appellate authority” means an appellate authority appointed under section 6; (2) “creditor” shall include the heirs, legal representatives and assigns of the creditor; (3) “debt” means any liability in cash or kind, whether secured or unsecured, due from or incurred by a debtor on or before the date of commencement of this Act, whether payable under a contract, or under a decree or order of any court, or otherwise, and subsisting on that date but does not include— (a) any sum payable to— (i) the Government of Kerala or the Government of India or the Government of any other State or Union Territory in India or any local authority; or (ii) the Reserve Bank of India or the State Bank of India or any subsidiary bank with the meaning of clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 or the Travancore credit Bank (in liquidation) constituted under the Travancore Credit Bank Act, IV of 1113; 1[or any Regional Rural Bank established under the Regional Rural Banks Act, 1976 (Central Act 21 of 1976).] (iii) a corporation owned or controlled by the Government of Kerala or the Government of any other State or Union Territory in India or the Government of India, or a Government company as defined in the Companies Act, 1956; or (iv) the Tea Board constituted under the Tea Act, 1953, or the Coffee Board constituted under the Coffee Act, 1942, or the Rubber Board constituted under the Rubber * Received the assent of the President on the 12th day of August, 1977 and published in the Kerala Gazette No. 474 dated 12th August, 1977. 1 Inserted by Act 28 of 1979 (w.e.f. 13-01-1977). 3 Act, 1947, or the Cardamom Board constituted under the Cardamom Act, 1965; or 2[(iv-a) the Kerala State Housing Board constituted under the Kerala State Housing Board Act, 1971 (19 of 1971);] (v) any co-operative society, including a Land Mortgage Bank, registered or deemed to be registered under the Co-operative Societies Act for the time being in force; or (b) any sum payable to any corresponding new bank specified in column (2) of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970; or (c) any liability arising out of a breach of trust or any tortious liability; or (d) any liability in respect of maintenance, whether under a decree of court or otherwise; or (e) any liability in respect of wages or remuneration due as salary or otherwise for services rendered; or (f) any debt which represents the price of goods purchased; or (g) any liability for which a charge is provided under sub-clause (b) of clause (4) of section 55 of the Transfer of Property Act, 1882; or (h) any rent payable in respect of any building; or 3[xxxx] (j) any debt or debts due to a widow at the commencement of this Act, provided that the value of the property owned by her at such commencement, including the principal amount of the debt or debts so due, does not exceed ten thousand rupees. Explanation.—For the purposes of this sub-clause, the house in which the widow lives, her wearing apparel or similar personal belongings shall not be regarded as property; or (k) any liability incurred or arising under a chitty or kuri which is registered or licenced under the Travancore Chitties Act, 1120, or the Cochin Kuries Act, VII of 1107, or the Kerala Chitties Act, 1975, or conducted under any chit fund scheme, and which has not terminated two years before the commencement of his Act: Provided that nothing in this sub-clause shall apply to the liability of a foreman incurred or arising under any such chitty or kuri where the foreman is a co-operative society registered or deemed to be registered under the Co-operative Societies Act for the time being in force. Explanation.—For the purposes of this sub-clause, a chitty or kuri shall be deemed to have terminated— 2 Inserted by Act 28 of 1979 (w.e.f. 13-01-1977). 3 Omitted by Act 28 of 1979 (w.e.f. 13-01-1977). 4 (i) when the period fixed in the variola or vaimbu or kuripattika or the period as altered by a subsequent special resolution for the duration of the chitty or kuri, has expired; or (ii) when the legal representative of a deceased foreman or the guardian of a foreman of unsound mind or the subscriber or subscribers selected therefore fails or fail to conduct the chitty or kuri or to make suitable arrangements for the further conduct of the chitty or kuri; or (iii) on the failure of the foreman to pay the prize amount to the subscriber within one month from the due date thereof; or (iv) on the failure of the foreman or foremen to conduct the chitty or kuri at any instalment or on any other date before the next instalment as may be agreed upon in writing by a majority of the non-prized subscribers: Provided that if there are more foremen than one and one or more of such foremen is or are living and is or are not disqualified to conduct the chitty or kuri, the chitty or kuri shall not be deemed to have terminated if there is provision in the variola or vaimbu or kuripattika enabling the remaining foreman or foremen to conduct the chitty or kuri or if the non prized subscribers agree by a special resolution to the conduct of the chitty or kuri by the remaining foreman or foremen; or (l) any debt due to any banking company as defined in the Banking Regulation Act, 1949; or (m) any amount due on account of any goods to a financier who financed the purchase of such goods and whose principal business is to finance the purchase of goods; or (n) any sum advanced for the purposes of agriculture by any institution receiving financial assistance from the Agricultural Refinance and Development Corporation established under the Agricultural Refinance and Development Corporation Act, 1963. Explanation I.—For the purposes of this clause,— (i) the liability of a surety who is a debtor shall be deemed to be a debt within the meaning of this Act, notwithstanding that the principal debtor is not a debtor for the purposes of this Act; (ii) where a debt has been split up in any manner whatsoever, whether before or after the commencement of this Act, and fresh documents have been executed in respect of different portions of the debt, each such different portion shall be a debt. Explanation II.—Where the debt is a liability in kind, the value of the commodity shall be commuted at the market rate prevailing on the date on which the debt was incurred; (4) “debtor” means any person whose annual income does not exceed three thousand rupees, from whom any debt is due, but does not include— (i) any person from whom debt or debts exceeding three thousand rupees ( excluding interest) is or are due: 5 (ii) a firm registered under the Indian Partnership Act, 1932, or a company as defined in the Companies Act, 1956, or a corporation formed in pursuance of an Act of Parliament of the United Kingdom or of any special Indian Law. Explanation.—For the purposes of this clause, the term “person” shall include a family; (5) “family” means a Hindu undivided family or a Marumakkathayam tarwad or tavazhi or an Aliyasanthana kutumba or a kavaru or a Nambudiri illom; (6) “interest” means any amount or other things paid or payable in excess of the principal amount borrowed or pecuniary obligation incurred, or, where anything has been borrowed in kind, in excess of what has been so borrowed, by whatsover name such amount or thing may be called, and whether the same is paid payable entirely in cash or entirely in kind or partly in cash and partly in kind and whether the same is expressly mentioned or not in the document or contract, if any; (7) “pay”, with its grammatical variations, includes deliver; (8) “prescribed”means prescribed by rules made under this Act; (9) “principal amount” means the amount originally advanced together with such sum, if any, as has been subsequently advanced, notwithstanding any stipulation to treat any interest as principal and notwithstanding that the debt has been renewed or included in a fresh document, whether by the same debtor or by his heirs, legal representatives or assigns or by any other person acting on his behalf or in his interest, and whether in favour of the same creditor or his heirs, legal representatives or assigns or of any other person acting on his behalf or in his interest; (10) “Tribunal” means a Tribunal constituted under section 5.