Section 2 — Definitions.

2. Definitions.- In this Act, unless there is anything repugnant in the 

subject or context,-  

 
2
[(i)  "bank" means,-  

(a)  a banking company as defined in the Banking Regulation 

Act, 1949 (10 of 1949); 

(b) the State Bank of India constituted under the State Bank 

of India Act, 1955 (23 of 1955); 

(c)  a subsidiary bank as defined in the State Bank of India 

(Subsidiary Banks) Act, 1959 (38 of 1959); 

(d)  a Regional Rural Bank established under the Regional 

Rural Banks Act, 1976 (21 of 1976); 

(e)  a corresponding new bank constituted under the Banking 

Companies (Acquisition and Transfer of Undertakings) 

Act, 1970 (5 of 1970); 

(f)  any banking institution notified by the Central 

Government under section 51 of the Banking Regulation 

Act, 1949 (10 of 1949); 

(g) the Agricultural Refinance and Development Corporation 

constituted under the Agricultural Refinance and 

Development Corporation Act, 1963 (10 of 1963); 

(h) the Agro-Industries Corporation as defined in sub-section 

(c) of section 2 of the Himachal Pradesh Agricultural 

Credit Operations and Miscellaneous Provisions (Banks) 

Act, 1972 (7 of 1973); 

(i) the Agricultural Finance Corporation Limited a company 

incorporated under the Companies Act, 1956 (1 of 1956); 

and 

(j)  any other financial institution notified by the State 

Government in the Official Gazette as a bank for the 

purpose of this Act;] 

(ii)  "Collector" means the Collector of the District or any officer 

specially empowered by the State Government to discharge 

                                                 
1. Act came into force w.e.f. 1

st
 April, 1979 vide Notification No. 10-17/69- Rev.- 

B, dated 3
rd

 February, 1979 published in the Rajpatra, Himachal Pradesh, dated 

12
th

 May, 1979, p. 330. 

2. Substituted vide H.P. Act No. 25 of 1978. 



THE HIMACHAL PRADESH DEBT REDUCTION ACT, 1976 

 
4 

the functions of a Collector for the purposes of this Act; 

(iii)  "co-operative society" means a society registered or deemed 

to be registered under the provisions of the Himachal Pradesh 

Co-operative Societies Act, 1968 (3 of 1969); 

(iv)  "court" means a civil court; 

(v)  "creditor" in Chapter V means a person who, in the regular 

course of business, advances a loan as defined in this Act and 

includes the legal representatives and the successors in 

interests whether by inheritance, assignment or otherwise, of 

a creditor; 

(vi)  "decree to which this Act applies" means a decree passed 

either before or after the commencement of this Act in a suit 

to which this Act applies; 

(vii)  "interest" means rate of interest and includes the return to be 

made over and above what was actually lent whether the same 

is charged or sought to be recovered specially by way of 

interest or usufruct or services to be rendered or otherwise; 

(viii)  "Financial Commissioner" means the Financial 

Commissioner of Himachal Pradesh for the time being and 

includes any officer specially empowered by the State 

Government to exercise the powers of the Financial 

Commissioner under this Act; 

(ix) "loan" means an advance in cash or kind and includes any 

transaction which in substance amounts to such advance but 

does not include an advance by the Central or State 

Government or by a local authority authorised by the State 

Government to make advance, by a co-operative society or by 

a bank or by the Life Insurance Corporation of India or a loan 

taken or used for the purposes of trade; 

(x)  "prescribed" means prescribed by rules made under this Act; 

(xi)  "principal" means the amount originally advanced; 

(xii)  "State Government" means the Government of Himachal 

Pradesh; 

(xiii) "suit to which this Act applies" means any suit or proceedings 

relating to a loan; 

(xiv) "debtor" means a person who receives a loan as defined under 

this Act; 

(xv) "Commissioner" means the Commissioner Revenue of 

Himachal Pradesh or any officer specially empowered by the 

State Government to exercise the powers of the 

Commissioner under this Act; 



THE HIMACHAL PRADESH DEBT REDUCTION ACT, 1976 5 

(xvi) "notification" means notification published under proper 

authority in the Rajpatra, Himachal Pradesh. 

CHAPTER II 

INSOLVENCY PROCEDURE