The Himachal Pradesh Public Moneys (Recovery Of Dues) Act, 2000

THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF 

DUES) ACT, 2000 

ARRANGEMENT OF SECTIONS 

Sections: 

1. Short title, extent and commencement. 

2. Definitions. 

3. Recovery of certain dues as arrears of land revenue. 

4. Collection of charges. 

5. Repeal and savings. 

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THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF 

DUES) ACT, 2000 

(ACT NO. 2 OF 2001)1 

(Received the assent of the Governor on 9th  February, 2001 and was 

published both in Hindi and English in the Rajpatra, Himachal Pradesh 

(Extra-ordinary), dated 17th February, 2001, pp. 5513-5523). 

An Act to re-enact the law relating to the speedy recovery of certain dues 

of the State Government or the Himachal Pradesh Financial 

Corporation or any other Corporation notified by the State 

Government in this behalf or a Government Company or a 

Banking Company. 

BE it enacted by the Legislative Assembly of Himachal Pradesh in the 

Fifty-first Year of the Republic of India, as follows:- 

1. Short title, extent and commencement.- (1) This Act may be 

called the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 2000. 

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

(3) It shall come into force at once. 

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

(a) “Banking Company” means,- 

(i) a Banking Company as defined in the Banking 

Regulation Act, 1949 ( 10 of 1949); 

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

Bank of India Act, 1955 (23 of 1955); 

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

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

 
1.. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 

Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 

29th December, 2000, pp. 4802 and 4807. 



THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 2 

(iv) the Agricultural Finance Corporation Limited, a 

Company incorporated under the Indian Companies 

Act, 1956 (1 of 1956); 

(v) the National Bank for Agricultural Rural Development 

established under the National Bank of Agricultural 

and Rural Development Act, 1981 (61 of 1981);  

(vi) a corresponding new bank constituted under the 

Banking Companies (Acquisition and Transfer of 

Undertaking) Act, 1970 (5 of 1970); 

(vii) any banking institution notified by the Central 

Government under section 51 of the Banking 

Regulation Act, 1949 (10 of 1949); 

(viii) the Regional Rural Banks constituted under the 

Regional Rural Banks Act, 1976 (21 of 1976); and  

(ix) a corresponding new Bank constituted under the 

Banking Companies (Acquisition and Transfer of 

Undertaking) Act, 1980 (40 of 1980); 

(b) “Collector” means a Collector of the District and includes any 

person appointed by the State Government to perform 

functions of the Collector under this Act; 

(c)  “Corporation” means the Himachal Pradesh Financial 

Corporation established under the State Financial Corporation 

Act, 1951(63 of 1951) and includes any other Corporation 

owned or controlled by the Central Government or the State 

Government which the State Government may, by 

notification specify; 

(d) “financial assistance” means any financial assistance 

rendered,- 

(i) for the purposes of vocational or technical training; or 

(ii) for the construction of residential buildings; or 

(iii) for providing drinking water, kuhl or pipe line; or 

(iv) for the development of animal husbandry, agriculture or 

horticulture; or 

(v) for the establishing, expanding, modernising, 

renovating or running any village or cottage industry, 

industrial undertaking or agro industry; or 

(vi) for purposes of any other kind of planned development; 

or 

(vii) for relief against distress; or 

(viii) for loans under the National Loans Scholarship 

Scheme; or 



THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 3 

(ix) for professional/specialised training, as may be notified, 

in the Official Gazette, by the State Government, in 

relation to which scholarship/stipend is paid out of the 

public funds and is imparted by the institutions of the 

State Government; 

(e) “Government Company” means a Government Company as 

defined in section 617 of the Companies Act, 1956 (1 of 

1956) and which is notified as such by the State Government 

from time to time; 

(f) “industrial undertaking” includes any undertaking for the 

manufacture, preservation, storage or processing of goods, or 

mining or the hotel industry, or the transport of passengers or 

goods, or the generation or distribution of electricity or any 

other form of power or the maintenance, repair, testing or 

servicing of machinery, vehicles, vessels, motor boats, trailers 

or tractors or assembling, repairing or packing of any articles 

with the aid of machinery or power or fishing or providing 

shore facilities for fishing or maintenance thereof, or for the 

development of any contiguous area of land as an industrial 

estate or providing special or technical knowledge or other 

services for promotion of industrial growth; 

Explanation.- The expression “processing of goods” 

includes any act or process for producing, preparing or 

making an article by subjecting any material to a manual, 

mechanical, chemical, electrical or any other like operation; 

(g) “sponsored scheme” means a scheme sponsored by way of 

financial assistance by the State Government or the Central 

Government under which the concerned Government, either- 

(i) advances money to the Corporation or the Government 

Company for the purposes of disbursing loans, 

advances, grants or subsidies or for the purpose of sale 

of goods on credit or hire purchase; or 

(ii) guarantees or agrees to guarantee the payment of loan, 

advances, grant or subsidies or the payment of price of 

goods sold on credit or hire purchase; and 

(h) “State Government” means the Government of Himachal 

Pradesh. 

3. Recovery of certain dues as arrears of land revenue.- (1) Where 

any person either as principal or as surety or as guarantor is a party- 

(a)  (i) to any agreement or bond, relating to a loan, advance 

grant, subsidy, financial assistance, stipend or 

scholarship given under that agreement or relating to 

credit in respect of, or relating to hire purchase of goods 

sold by the State Government, Government Company, 



THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 4 

Banking Company, or Corporation by way of financial 

assistance; or 

(ii) to any agreement relating to loan, advance, grant or 

subsidy given under that agreement or relating to credit 

in respect of, or relating to hire purchase of, goods sold 

by the State Government, a Banking Company, a 

Corporation or a Government Company as the case 

may be, under a sponsored scheme; or 

(b) to any agreement relating to a guarantee given by the State 

Government, Government Company, Banking Company or a 

corporation in respect of a loan raised by an industrial 

undertaking; or 

(c) to any agreement providing that any money payable 

thereunder to the State Government shall be recoverable as 

arrears of land revenue; or  

(d) to any agreement to sell or distribute goods or any other 

article supplied by/or through the State Government and such 

person- 

(i) makes any default in the repayment of the loan, 

advance, stipend or scholarship or any instalment or 

interest thereof; or 

(ii) having become liable under the conditions of the grant 

to refund the grant or any portion thereof, makes any 

default in repayment of such grant or portion or 

instalment thereof; or 

(iii) having become liable to pay the price of the goods or 

any other article or interest thereof, fails to pay the 

same or part thereof; or 

(iv) otherwise fails to comply with the terms of the 

agreement; 

then, in case of the State Government, such officers as may be 

authorised in this behalf by the State Government, by notification in the 

Official Gazette, and in the case of Banking Company, Corporation or the 

Government Company, the Managing Director or any other officer not below 

the rank of Divisional Manager specifically authorised in this behalf, thereof, 

by whatever name called, may without prejudice to any other mode of 

recovery under any other law for the time being in force, send a certificate to 

the Collector, mentioning the sum due from such person and requesting that 

such sum together with the costs of the proceedings or any other sum be 

recovered as if it were an arrear of land revenue. 

(2) A certificate sent under sub-section(1) shall be conclusive proof of 

the matter stated therein and the Collector on receiving such certificate shall 

proceed to recover the amount stated therein as an arrear of land revenue. 



THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 5 

(3) Nothing in sub-section (1) shall affect any interest of the State 

Government, a Banking Company, a Corporation or a Government Company, 

in any property created by mortgage, charge, pledge or any other 

encumbrance. 

(4) Where the property of any person referred to in sub-section(1) is 

subject to any mortgage, charge, pledge or other encumbrance in favour of the 

State Government, a Banking Company, a Corporation or a Government 

Company, as the case may be, then- 

(a) in every case of a pledge of goods, proceedings shall first be 

taken for the sale of goods so pledged and if the proceeds of 

such sale  are less than the sum due, then proceedings shall be 

taken for recovery of the balance against the other property of 

such person: 

Provided that where the State Government is of the 

opinion that it is necessary so to do for safeguarding the 

recovery of the sum due to it or to a Banking company, a 

Corporation or a Government Company, as the case may be, 

it may, for reasons to be recorded in writing, direct 

proceedings to be taken against the other property then the 

goods pledged before or at the same time as the proceedings 

are taken for the sale of goods pledged. 

(b)  in every case of a mortgage, charge or other encumbrance on 

immovable property, such property or, as the case may be, the 

interest therein of the person referred to in sub-section (1) 

shall first be sold in proceedings for recovery of the sum due 

from that person and any other proceedings may be taken 

only if the Collector certifies that there is no prospect of 

realisation of the sum due through the first mentioned process 

within a reasonable time. 

(5) Where Government dues are recoverable from the person 

mentioned in section 3 in addition to dues of Government Company, Banking 

Company or Corporation, priority will be given to Government dues in 

recovery as arrears of land revenue. 

4. Collection charges.- A Banking Company, a Corporation or a 

Government Company availing the services of the Collector under section 3 

shall pay collection charges to the State Government at such rates, as may be 

notified in the Official Gazette by the State Government, from time to time. 

5. Repeal and Savings.- (1) The Himachal Pradesh Public Moneys 

(Recovery of Dues) Act, 1973 is hereby repealed. 

(2)  Notwithstanding such repeal, anything done or any action taken 

under the said Act, shall be deemed to have been done or taken under the 

Corresponding provisions of this Act. 

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THE HIMACHAL PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 2000 6