The Telangana Jagirdars Debt Settlement Act, 1952.

THE TELANGANA JAGIRDARS DEBT SETTLEMENT ACT, 1952. 

(ACT NO. XII OF 1952.) 

ARRANGEMENT OF SECTIONS 

Sections 

 
CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement. 

2. Definitions. 

3. Savings. 

 CHAPTER II 
CONSTITUTION AND POWERS OF BOARD 

4. Constitution of the Board. 

5. Removal of Board or member. 

5-A. Temporary arrangement for exercise of functions 
of Board. 

5-B. Transfer of pending proceeding. 

6. Power of Board to decide all questions arising on 
settlement of debts. 

7. Procedure before Board. 

8. Proceedings deemed to be judicial proceedings. 

9. Control over Board. 

10. Power of Board to extend time. 

 CHAPTER III 
PROCEDURE FOR SETTLEMENT OF DEBTS 

11. Application for settlement of debts. 

12. Every creditor and debtor to file a true and correct 
statement before Board. 

13. Application by debtor jointly and severally liable. 



2  [Act No. XII of 1952] 

14. Assignees from non-debtor not entitled to benefit 
of this Act. 

15. Application for recording settlement. 

16. Settlement during pendency of proceedings 
before Board or Court in appeal. 

17. Certain settlements to be void. 

18. Application under section 11 or 15 to be made 
only in respect of debtor whose debts are not 
less than Rs.5,000. 

19. Withdrawal of applications. 

20. Consolidations of applications. 

21. Service of notice on debtors and creditors to 
submit statements of debts. 

22. Debts in respect of which no application for 
adjustment or settlement is made to be void. 

23. Duties of debtors and creditors. 

24. Preliminary issues. 

25. Transfer of pending suits, appeals, applications 
and proceedings to the Board. 

26. Taking of accounts. 

27. Examination of creditor and debtor. 

28. Mode of taking accounts. 

29. In certain cases rent may be charged in lieu of 
profits. 

30. Notice to Jagir Administrator, Co-operative 
Societies, Registrar, Local authorities and other. 

31. Board's duty to determine particulars, value, etc. 
of property. 

32. Fraudulent alienations or encumbrances void. 



[Act No. XII of 1952]  3 

33. Value of property of debtor to be determined by 
Board in prescribed manner. 

34. Paying capacity. 

35. Debts payable by debtors to be scaled down. 

36. Award. 

37. Procedure for further scaling down of debts. 

38. No recovery of amount in excess of debts scaled 
down. 

39. Debts not to be scaled down in case of collusion. 

40. Ex parte proceedings if any party does not 
appear. 

41. Reopening of award and resettlement of debts. 

42. Award to be registered; how to be executed. 

43. Postponement of payment of instalment. 

44. No alienation by debtor before discharge of debts 
valid. 

45. Board may order sale of debtor's property in 
liquidation of his debt. 

46. Pleaders etc., excluded from appearance. 

47. Appeals. 

48. Grounds of appeal. 

49. Court-fees. 

50. Notice how served. 

51. Provisions of Civil Procedure Code to apply to 
proceedings. 

 

 

 



4  [Act No. XII of 1952] 

 CHAPTER IV. 
INSOLVENCY PROCEEDINGS. 

52. Board to declare debtor insolvent in certain 
circumstances. 

53. Procedure in insolvency proceedings. 

54. Distribution of assets of insolvent. 

55. Bar to application in insolvency in other Courts. 

56. Appeals barred. 

 CHAPTER V. 
MISCELLANEOUS 

57. Period of proceedings before Board under this 
Act to be excluded. 

58. Alienation of property before repayment of loan 
prohibited. 

59. Power of Government to authorise any person to 
advance loans to debtors. 

60. Rules. 

61. Operation of Act XVI of 1956 excluded from debts 
to which the present Act applies. 

 



THE TELANGANA JAGIRDARS DEBT SETTLEMENT  
ACT, 1952.1 

 
ACT No. XII OF 1952. 

 
CHAPTER I 
Preliminary. 

 
1. (1) This Act may be called 2[the Telangana Jagirdars 
Debt Settlement Act, 1952]. 
 
 (2) It extends to the whole of 2the State of Telangana. 
 
 (3) It shall come into force on the date of its publication 
in the 3[Official Gazette]. 
 
2. In this Act, unless there is anything repugnant in the 
subject or context- 
 
 (a) “award” means an award made under the 
provisions of this Act; 
 
 (b) “Board” means a Board constituted under section 4 
for the settlement of debts; 
 
 (c) “Collector” means the chief officer in charge of the 
revenue administration of a district and includes any officer 
appointed as Collector under this Act; 

                                                           
1. The Andhra Pradesh (Telangana Area) Jagirdars Debt Settlement Act, 
1952, applicable to the Telangana area of the State and in force in the 
combined State, as on 02.06.2014, has been adapted to the State of 
Telangana, under section 101 of the Andhra Pradesh Reorganisation 
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws 
(No.2) Order, 2016, issued in G.O.Ms.No.46, Law (F) Department, dated. 
01.06.2016. 
2. Substituted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
3. Substituted for the word “Jarida” by the Andhra Pradesh Adaptation 
of Laws Order (A.P.A.O.), 1957. 

Short title, extent 
and 
commencement. 

 

Definitions. 



2  [Act No. XII of 1952] 

 (d) “Co-operative Society” means a Society registered 
4[or deemed to be registered] under the provisions of 5[the 
Andhra Pradesh (Telangana Area) Co-operative Socities 
Act, 1952]; 
 
 (e) “debt” means any liability in cash or kind, whether 
secured or unsecured, due from a Jagirdar, whether 
payable under a decree or order of any Civil Court or 
otherwise and “debtor” shall be construed accordingly; 
 
 (f) “Jagirdar” includes a Guzarayab and a Hissedar as 
defined in clauses (c) and (e) respectively of section 2 of  
6[the Telangana (Abolition of Jagirs) Regulation, 1358 F.]; 
 
 (g) “local authority” means a Municipal Committee, a 
District Board or other authority legally entitled to or 
entrusted by Government with control or management of a 
municipal or local fund; 
 
 (h) “prescribed” means prescribed by rules; 
 
 (i) “rule” means rule made under this Act; 
 
 (j) “scheduled bank” means a bank included in the 
Second Schedule to the Reserve Bank of India Act, 1934; 
 
 (k) words and expressions used in this Act but not 
defined, have the meanings assigned to them in the Code of 

                                                           
4. The words “or deemed to be registered” were inserted by the Andhra 
Pradesh Adaptation of Laws Order, 1957. 
5. Substituted for the short title “the Hyderabad Co-operative Societies 
Act, 1952” by A.P. Act IX of 1961 and the said Act XVI of 1952 was 
repealed by the Telangana Co-operative Societies Act, 1964 (Act 7 of 
1964). 
6. Adapted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 

Act XVI of 1952. 

Regulation LXIX of 

1358 F. 



[Act No. XII of 1952]  3 

Civil Procedure, 1908, or 7[the Telangana Land Revenue 
Act, 1317 F.], as the case may be. 
 
3. Save as otherwise expressly provided, nothing in this 
Act shall affect the debts and liabilities of a debtor falling 
under the following heads namely:- 
 
 (i) any revenue or tax payable to Government or any 
other sum due to it by way of loan or otherwise, 
 
 (ii) any tax payable to a Local authroity or any other 
sum due to it by way of loan or otherwise, 
 
 (iii) any sum due to a co-operative society, 
 
 (iv) any sum due under a decree or order for 
maintenance passed by a competent Court, and 
 
 (v) any sum due to a scheduled bank. 
 

CHAPTER II 
 

Constitution and Powers of Board 
 
4. (1) The Government may, by notification in the 8[Official 
Gazette] from time to time establish one or more Boards for 
the settlement of debts or any class of debts and the 
notification shall specify the extent of the jurisdiction of the 
Board or Boards so established. 
 
 (2) The Board shall consist of a Chairman and two 
other members. 
 

                                                           
7. Adapted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
8. Substituted for the word “Jarida” by the A.P.A.O., 1957. 

Savings. 

Constitution of the 
Board. 

Central Act 5 of 1908. 

Act VIII of 1317 F. 



4  [Act No. XII of 1952] 

 (3) The Chairman and other members of the Board 
shall be appointed by Government and the Chairman shall 
possess such judicial qualifications as may be prescribed. 
 
 (4) The quorum of the Board shall be two except in 
respect of the final decision of the Board at which all the 
members shall be present. 
 
 (5) Where the Chairman and other members of the 
Board are not unanimous in their decision, the opinion of 
the majority shall prevail. If the decision of each of them on 
any point is different, the opinion of the Chairman on that 
point shall prevail. 
 
 (6) The Government shall by order direct which of the 
two members of the Board shall, in the absence of the 
Chairman, act as Chairman. 
 
 (7) No member of a Board who has directly or 
indirectly by himself or by his partner or near relation any 
share or interest in any transaction which is tbe subject-
matter of any proceedings before the Board or any Jagirdar 
or any creditor of a Jagirdar or a professional money-lender 
shall act as a member of the Board in respect of such 
proceedings: 
 
 Provided that the proceedings of a Board shall not be 
called in question on the ground that a member has acted in 
contravention of  this sub-section unless by reason of such 
contravention there has been a failure of justice. 
 
5. (1) Notwithstanding anything contained in section (4), 
the Government may, after such enquiry as it thinks fit, at 
any time by notification in the 9[Official Gazette]- 
 

                                                           
9. Substituted for the word “Jarida” by the A.P.A.O., 1957. 

Removal of Board 
or member. 



[Act No. XII of 1952]  5 

  (a) dissolve any Board and establish in its place a 
fresh Board; or 
 
  (b) remove all or any of the members of the Board 
and appoint in their place new members. 
 
 (2) The dissolution of a Board or the occurrence of any 
vacancy on the Board through death, resignation or removal 
of its members under clause (b) of subsection (1) shall not 
save to the extent, if any, directed by Government, in any 
way affect the validity of any proceeding pending before the 
Board and the said proceedings shall be continued before 
the said Board or before any other Board established in 
place of the said Board, as the case may be, as if there has 
been no dissolution of the Board or the occurrence of any 
such vacancy. 
 
 (3) Save as otherwise provided in this Act, the 
proceedings pending before any Board which has been 
dissolved under sub-section (1) and in place of which no 
other Board has been established shall be deemed to be 
civil proceedings for the purposes of the 10Indian Limitation 
Act, 1908, and the period during which such proceedings 
were pending before the Board shall be excluded in 
computing their period of limitation in regard to any suit or 
application which may be instituted in any civil court to 
enforce any claim which was the subject matter of the 
proceedings pending before the Board so dissolved. 
 
11[5-A. Notwithstanding anything contained in the foregoing 
sections, if in view of the reorganisation of States under the 
States Reorganisation Act, 1956 (Central Act 37 of 1956), a 
Board is not or cannot for any reason, be reconstituted on 
the first day of November, 1956, in accordance with the 

                                                           
10. Since repealed by Central Act 36 of 1963. 
11. Section 5-A inserted by A.P.A.O., 1957. 

Temporary 
arrangement for 
exercise of 
functions of 
Board. 



6  [Act No. XII of 1952] 

provisions of section 4, for the area to which this Act 
extends, then until such Board is so reconstituted, the 
Government may appoint such authority possessing such 
qualification as it may by general or special order specify, to 
exercise the functions of the Board under this Act.] 
 
12[5-B. Notwithstanding anything in this Act, the Board shall 
stand dissolved with effect from the commencement of the 
Andhra Pradesh (Telangana Area) Jagirdars Debt 
Settlement (Amendment) Act, 1963 and all the proceedings 
pending before the Board at such commencement, shall 
stand transferred to, and be disposed of by, the Court of the 
First Additional Chief Judge of the City Civil Court, 
Hyderabad in accordance with the provisions of this Act, as 
if it were a Board constituted under section 4 for the 
settlement of debts.] 
 
6. (1) Subject to the provisions of this Act, the Board shall 
have full power to decide all questions, whether of title or 
priority or of any nature whatsoever, and whether involving 
matters of law or fact, which may arise in any case within the 
cognizance of the Board or which the Board may deem it 
expedient or necessary to decide for the purpose of doing 
complete justice or making a complete settlement of debts 
in any such case. 
 
 (2) Subject to the provisions of this Act and 
notwithstanding anything contained in any other law for the 
time being in force, every such decision shall be final and 
binding for all purposes on all parties and all other persons 
claiming through or under such persons who are parties to 
the proceedings in which such decision is given. 
 
7. (1) Subject to the provisions of this Act and any rules 
made thereunder, the Board shall have the same powers as 

                                                           
12. Section 5-B inserted by Act 21 of 1963.  

Transfer of 
pending 
proceeding. 

Act 21 of 1963. 

Power of Board to 
decide all 
questions arising 
on settlement of 
debts. 

Procedure before 
Board. 



[Act No. XII of 1952]  7 

are vested in civil courts under the Code of Civil Procedure, 
1908, when trying a suit and in particular in respect of the 
following matters:- 
 
  (a) joining any necessary or proper parties; 
 
  (b) summoning and enforcing the attendance of  any 
persons and examining him on oath; 
 
  (c) compelling the production of documents; 
 
  (d) issuing commissions for the examination of 
witnesses; and 
 
  (e) proof of facts by affidavits. 
 
 (2) Subject to the provisions of this Act and any rules 
made thereunder, the Board may direct any of its members 
to inspect any site or to examine any witnesses.  On the 
inspection of such site by a member and the examination by 
him of witnesses, a report shall be made to the Board which 
shall be evidence in the case. 
 
8. All proceedings under this Act before the Board shall 
be deemed to be judicial proceedings for the purposes  of 
sections 193 and 228 of the Indian Penal Code. 
 
9. (1) A Board shall in all proceedings under this Act be 
subject to the control of the High Court. 
 
 (2) The High Court or any person authorised by the 
High Court in this behalf may inspect or cause to be 
inspected any property, books or documents in possession 
of or under the control of the Board and require the Board to 
furnish such statements, accounts, reports, copies of 
documents or such other information relating to the 
proceedings and duties of the Board and may pass such 

Proceedings 
deemed to be 
judicial 
proceedings. 

Control over 
Board. 



8  [Act No. XII of 1952] 

orders thereon as the High Court or the person authorised, 
as the case may be, thinks fit. 
 
10. Where any period is fixed or granted by the Board for 
the doing of any act prescribed or allowed by this Act, the 
Board may, in its discretion, from time to time, extend such 
period, even though the period originally fixed or granted 
may have expired. 

 
CHAPTER III 

PROCEDURE FOR SETTLEMENT OF DEBTS 
 
11. (1) Any Jagirdar ordinarily residing in any part of 13[the 
area to which this Act extends] or his creditor may make an 
application to a Board of competent jurisdiction on or before 
such date as the Government may notify in the 14[Official 
Gazette] for settlement of debts due by the Jagirdar. 
 
 (2) Every application made under sub-section (1) shall 
be in writing in the prescribed form and shall be signed, 
verified and presented in the prescribed manner. 
 
 (3) Notwithstanding anything contained in section 3, an 
application made under this section shall contain also the 
amounts and particulars of all debts specified in that section 
due by the debtor. 
 
12. (1) Notwithstanding the fact that no application has 
been filed under section 11- 
 
  (a) every creditor, on being required to do so by 
notice in writing by any of his debtors, shall, within one 
month from the date of the receipt of such notice, file before 
the Board concerned a true and correct statement of all his 
                                                           
13. Substituted for the words “the State of Hyderabad” by the A.P.A.O., 
1957. 
14. Substituted for the word “Jarida” by A.P.A.O., 1957. 

Power of Board to 
extend time. 

Application for 
settlement of 
debts. 

Every creditor and 
debtor to file a 
true and correct 
statement before 
Board. 



[Act No. XII of 1952]  9 

claims against such debtor, and shall at the same time send 
a copy thereof to such debtor, and 
 
  (b) every debtor, on being required to do so by notice 
in writing by any of his creditors, shall, within one month 
from the date of the receipt of such notice, file before the 
Board a true and correct statement- 
 
   (i) of all the debts owed by such debtor; and 
 
   (ii) of his income in the year preceding the date of 
the notice; 
 
the debtor shall at the same time send a copy of such 
statement to such creditor: 
 
 Provided that the Board may, for sufficient cause, 
extend, from time to time, the period within which the 
creditor or the debtor, as the case may be, may file such 
statement. 
 
 (2) Every debtor or creditor giving a notice under sub-
section (1) shall at the same time send a copy thereof to the 
Board concerned. 
 
 (3) In awarding the costs of any proceedings in respect 
of any application made under section 11 the Board may, 
on being satisfied that the statement required to be filed 
under sub-scction (1) was, without sufficient cause, not filed 
within the time specified therein or within the extended 
period under the proviso to that sub-section or incorrectly 
filed, direct the party in default to bear the whole or any 
portion of the costs of such proceeding. 
 
13. (1) If the payment of a debt due by a debtor is 
guranteed by a surety or if a debtor is otherwise jointly and 
severally liable for any debt along with any other person and 

Application by 
debtor jointly and 
severally liable. 



10  [Act No. XII of 1952] 

if the surety or such other person is not a debtor, the debtor 
may make an application under section 11 for relief in 
respect of such debt and the Board may after consideration 
of the facts and circumstances of the case proceed with the 
settlement of debts under this Act in so far as such applicant 
is concerned. 
 
 (2) Whenever the debts due by a debtor which are 
guaranteed by a surety are settled under sub-section (1), 
the surety shall be discharged from liability in respect of the 
debts or portion of the debts of such debtor which are 
extinguished under sub-section (1) of section 22, sub-
section (5) of section 30, section 38 or clause (2) of section 
39; and the surety shall not be entitled to proceed against 
the debtor in respect of such debts or portion. 
 
14. No application shall lie under section 11 for settlement 
of any debts due from a debtor to whom such debt has 
been transferred or assigned after the 1st January, 1941 by 
any person who is not himself a debtor. 
 
15. (1) If any debtor and any or all of his creditors arrive at 
a settlement in respect of any debt due by the debtor to the 
creditor, the debtor or any of the creditors may, within thirty 
days from the date of such settlement, make an application 
to the Board for recording such settlement. 
 
 (2) Every such application shall be in the prescribed 
form, and shall be signed and verified in the prescribed 
manner. 
 
 (3) On receipt of such application the Board shall, after 
giving notice to the creditor or the debtor, as the case may 
be, and after making such enquiry as it thinks fit, if it is 
satisfied that the settlement arrived at is bona fide and 
voluntary and is not made with intent to defeat or delay any 
of the creditors of the debtor, and is in the interest of the 

Assignees from 
non-debtor not 
entitled to benefit 
of this Act. 

Application for 
recording 
settlement. 



[Act No. XII of 1952]  11 

debtor, and that the debtor is a person who fulfils the 
conditions referred to in clauses (a) and (b) of sub-section 
(1) of section 24, record such settlement and certify the 
same. Every such settlement so recorded and certified shall 
be binding upon the parties thereto and shall not, save as 
otherwise hereinafter provided be reopened. 
 
 (4) After the Board has recorded and certified a 
settlement under sub-section (3), the Board shall call upon 
the debtor to make a declaration whether there are any 
other debts due by the debtor which are not included in the 
settlement. If the debtor makes a declaration that there are 
no such debts, the Board shall make an award in terms of 
such settlement. 
 
 (5) If the Board is satisfied, after recording such 
settlement, that there are other debts due from the debtor 
which are not included in the settlement the Board shall 
treat the application made under sub-section (1) as an 
application for settlement of debts under section 11. 
 
16. Notwithstanding anything contained in the preceding 
sections, if during the pendency of proceedings before the 
Board or the Court in appeal, as the case may be, a 
settlement is arrived at between a debtor and all his 
creditors and if such Board or Court is satisfied that the 
settlement has been made by the debtor voluntarily and is 
for his benefit, such Board or Court may make 
an award in terms of such settlement. 
 
17. Every settlement by consent of a debt due from a 
debtor to any creditor, which is not certified by the Board 
under section 15, or in terms of which no award has been 
made under section 16, shall be void and shall not be 
recognised by any Court or Tribunal for any purpose 
whatsoever. 
 

Settlement during 
pendency of 
proceedings 
before Board or 
Court in appeal. 

Certain 
settlements to be 
void. 



12  [Act No. XII of 1952] 

18. No application under section 11 or 15 shall be 
entertained by the Board on behalf of or in respect of any 
debtor, unless the total amount of debts due from him on 
the date of the application is not less than Rs.5,000. 
 
 
 
19. An application for settlement of debts under section 11 
or an application for recording a settlement under section 15 
shall not be withdrawn without the leave of the Board. 
 
20. Where two or more applications for settlement of debts 
under section 11 are presented by or against the same 
debtor, all such applications shall be consolidated. Where 
such separate applications are presented against joint 
debtors, all such applications shall be heard together. 
 
21. On receipt of an application for settlement of debts, the 
Board shall- 

 
 (a) give notice to the debtor (unless the debtor is 
himself an applicant) and to every creditor (other than the 
creditor who is himself an applicant) whose name and 
address are given in the application, and 

 
 (b) publish a general notice, requiring the debtor and 
all creditors to submit a statement in the prescribed form 
within one month from the date of the service of the notice 
or the publication of the general notice, whichever is later: 

 
 Provided that if the Board is satisfied that the debtor or 
any other creditor is for good and sufficient cause unable to 
comply with the notice within the time specified therein it 
may extend the period for the submission of the statement. 
 
 

Application under 
section 11 or 15 
to be made only 
in respect of 
debtor whose 
debts are not less 
than Rs.5,000. 

Withdrawal of 
applications. 

Consolidations of 
applications. 

Service of notice 
on debtors and 
creditors to 
submit statements 
of debts. 



[Act No. XII of 1952]  13 

22. (1) Every debt due from a debtor in respect of which no 
application has been made under section 11 within the 
period specified in the said section 11 or in respect of which 
no application for recording a settlement is made under 
section 15 within the period specified in the said section 15 
or in respect of which an application made to the Board is 
withdrawn under section 19 and no fresh application is 
made under section 11 and every debt due from such 
debtor in respect of which a statement is not submitted to 
the Board by the creditor in compliance with the provisions 
of section 21 shall be extinguished. 

 
 (2) Nothing contained in sub-section (1) shall apply- 
 
  (a) to any debt in respect of which the debtor and 
creditor agree in writing before the Board that the said  
sub-section shall not apply thereto, or 
 
  (b) to any debt due from any person who has by his 
declaration, act or omission intentionally caused or 
permitted his creditor to believe that he is not a debtor for 
the purposes of this Act or that no application under section 
11 can be entertained in respect of any debt owed by such 
person to such creditor by reason of the provisions of 
section 18. 
 
23. (1) Every debtor by or against whom an application is 
made under section 11 or who is a party to an application 
made under section 15 shall produce all books of accounts 
and shall give such inventories of his property and such lists 
of his property or his creditors and debtors and of the debts 
due from and to him, submit to such examination in respect 
of his property or his creditors, attend at such time before 
the Board and generally do all such things as may be 
required by the Board or as may be prescribed. 
 

Debts in respect 
of which no 
application for 
adjustment or 
settlement is 
made to be void. 

Duties of debtors 
and creditors. 



14  [Act No. XII of 1952] 

 (2) It shall be the duty of every creditor to produce 
such books of accounts, to submit to such examination and 
to supply such information in respect of the debt due to him 
by the debtor and the securities held by him, as may be 
required by the Board or as may be prescribed. 
 
24. (1) On the date fixed for the hearing of an application 
made under section 11, the Board shall decide the following 
points as preliminary issues:- 
 
  (a) whether the person for the settlement of whose 
debts the application has been made is a debtor; 
 
  (b) whether the total amount of debts due from such 
person on the date of the application is or exceeds  
Rs. 5,000/- 
 
 (2) If the Board finds that such person is not a debtor 
or that the total amount of debts due from such person on 
the date of the application is less than Rs. 5,000/- the Board 
shall dismiss the application forthwith. 
 
25.  (1) All suits, appeals, applications for execution and 
proceedings other than revisional in respect of any debt 
pending in any civil or revenue court shall, if they involve the 
questions whether the person from whom such debt is due 
is a debtor and whether the total amount of debts due from 
him on the date of the application is less than Rs. 5,000 be 
transferred to the Board. 
 
 (2) When an application for adjustment of debts made 
to a Board under section 11 or a statement submitted to a 
Board under section 21 includes a debt in respect of which 
a suit, appeal, application for execution or proceeding other 
than revisional is pending before a civil or revenue court, the 
Board shall give notice thereof to such other court. On 
receipt of such notice, such other court shall transfer the 

Preliminary 
issues. 

Transfer of 
pending suits, 
appeals, 
applications and 
proceedings to 
the Board. 



[Act No. XII of 1952]  15 

suit, appeal, application or proceeding, as the case may be, 
to the Board. 
 
 (3) When any suit, appeal, application or proceeding is 
transferred to the Board under sub-section (1) or  
sub-section (2), the Board shall proceed as if an application 
under section 11 had been made to it. 
 
 (4) If the Board, to which any suit, appeal, application 
or proceeding is transferred under sub-section (1) or sub-
section (2), decides the preliminary issue mentioned in 
clause (a) of sub-section (1) of section 24 in the negative or 
that mentioned in clause (b) of the said sub-section (1) in the 
negative, it shall retransfer the suit, appeal, application or 
proceeding to the court from which it had been transferred 
to itself after the disposal and subject to the result of the 
appeal where an appeal is filed, and after the expiry of the 
period prescribed for an appeal where no appeal is filed. 
 
 (5) When any suit, appeal, application or proceeding is 
retransferred to the court under sub-section (4), the said 
court shall proceed with the same. 
 
26. If the Board finds that the person making an application 
under section 11 or the person against whom an application 
is made under the said section 11 to be a person- 
 
 (a) who is a debtor, and 
 
 (b) the total amount of debts due from whom on the 
date of the application is not less than Rs. 5,000 the Board 
shall proceed to take accounts in the manner hereinafter 
provided. 
 
27. In an application for the settlement of debts if the 
amount of the creditor’s claim is disputed the Board shall, 
when taking accounts, examine both the creditor and the 

Taking of 
accounts. 

Examination of 
creditor and 
debtor. 



16  [Act No. XII of 1952] 

debtor as witnesses, unless for reasons to be recorded the 
Board deems it unnecessary so to do. 
 
28. Notwithstanding any agreement between the parties or 
the persons (if any) through whom they claim, as to allowing 
compound interest or setting of the profits of mortgaged 
property without an account in lieu of interest, or otherwise 
determining the manner of taking the account, and 
notwithstanding any statement or settlement of account, or 
any contract purporting to close previous dealings and 
create a new obligation, the Board shall enquire into the 
history and merits of the case and take account between the 
parties from the commencement of the transactions 
subsisting between the parties and the persons (if any) 
through whom they claim, out of which the claim has arisen 
and determine the amount due to each of the creditors at 
the date of the application made under section 11, 
according to the following rules, namely:- 
 
 (1)(a) Separate accounts of principal and interest shall 
be taken. 
 
  (b) In the account of principal there shall be debited 
to the debtor only such amount whether paid in cash or kind 
as may from time to time have been actually received 
by him or on his account from the creditor. 
 
  (c) In the accounts of principal and interest there shall 
also be debited the amount, if any, respectively due for 
principal (including costs) and interest under any decree or 
order passed by a competent court in respect of any debt: 
 
 Provided that if such decree or order does not specify 
the amount of principal and interest separately or does not 
contain any material for determining the same two-third and 
one-third of the amount awarded by such decree or order 
shall for purposes of this clause, be deemed to be the 

Mode of taking 
accounts. 



[Act No. XII of 1952]  17 

amount awarded on account of principal (including costs) 
and interest, respectively. 
 
 (2) In the case of transactions which commenced 
before the 1st January 1934 the Board shall take the 
account up to the date of the institution of the application 
and in the account of interest there shall be debited to the 
debtor, simple interest on the balance of principal for the 
time being outstanding at the rate agreed upon between the 
parties or at the rate allowed under any decree passed 
between the parties, or at a rate not exceeding 12 per cent 
per annum whichever is the lowest. The amount found due 
in respect of principal as well as in respect of interest shall, 
each separately, be reduced to such extent not exceeding 
40 percent as to the Board, having regard to all the 
circumstances of the case, appears fair and reasonable, 
notwithstanding that a decree or order of a civil court was 
passed in respect of any such amount or portion thereof. 
The amounts so reduced shall be taken to represent the 
amounts due in respect of principal and interest on the date 
of the institution of the application. 
 
 (3) In the case of transactions which commenced on or 
after the 1st January 1934 but before the 1st January 1943 in 
the account of interest there shall be debited to the debtor, 
simple interest on the balance of principal for the time being 
outstanding at the rate agreed upon between the parties, or 
at the rate allowed under any decree passed between the 
parties, or at a rate not exceeding 9 per cent per annum, 
whichever is the lowest. The amount found due on the date 
of the institution of the application in respect of principal as 
well as interest shall each separately be reduced to such 
extent not exceeding 30 per cent as to the Board, having 
regard to all the circumstances of the case appears fair and 
reasonable, notwithstanding that a decree or order of a civil 
court was passed in respect of any such amount or portion 
thereof. The amounts so reduced shall be taken to represent 



18  [Act No. XII of 1952] 

the amounts due in respect of principal and interest on the 
date of the institution of the application. 
 
 (4) In the case of transactions which commenced on or 
after the 1st January 1943, in the account of interest there 
shall be debited to the debtor simple interest on the balance 
of principal for the time being outstanding at the rate agreed 
upon between the parties, or at the rate allowed under any 
decree passed between the parties, or at a rate not 
exceeding 6 per cent per annum whichever is the lowest. 
 
 (5) All money paid by or on account of the debtor to 
the creditor or on his account and all profits, services or 
other advantages of every description received by the 
creditor in the course of the transactions (estimated, if 
necessary, at such money value as the Board in its 
discretion may determine) shall be credited first in the 
account of interest, and when any payment is more than 
sufficient to discharge the balance of interest due at the rate 
specified in sub-sections (2), (3) or (4) as the case may be 
the residue of such payment shall be credited to the debtor 
in the account of principal. 
 
 (6) The accounts of principal and interest shall be 
made up to the date of the institution of the application, and 
the aggregate of the balance. if any, appearing due on both 
such accounts against the debtor on that date shall be 
deemed to be the amount due at that date except when the 
balance appearing due on the interest account exceeds that 
appearing on the principal account, in which case double 
the latter balance shall be deemed to be the amount then 
due: 
 
 Provided that where transactions between the parties 
have commenced more than 30 years before the 30th 
January 1943, any settlement of accounts which has been 
last arrived at between the parties before the said period of 



[Act No. XII of 1952]  19 

30 years and which is in writing and bears the signature of 
the debtor or the person through whom the liability is 
derived shall be accepted as binding between the parties 
and no enquiry into the history and merits of the case shall 
be made prior to the date of such settlement. 
 
29. Where any mortgaged property is in the possession of 
the mortgagee or his tenants other than the mortgagor and 
the Board is unable to determine what profits have actually 
been received, it may fix a fair rent for such property and 
charge to the mortgagee such rent as profits for the purpose 
of section 28. 
 
30. (1) On receipt of an application for settlement of debts, 
the Board shall give notice to the Jagir Administrator 
requiring him to state to the Board within such time as may 
be fixed by it the amount of the debt due by the debtor to 
Government. 
 
 (2) The Board shall also give similar notice to any local 
authority, co-operative society or scheduled bank to which 
any debt may be due by the debtor and also to any person 
who is entitled to maintenance from the debtor, under a 
decree or order passed by a competent court. In the case of 
any debt due to a co-operative society, the Board shall also 
give notice to the Registrar of Co-operative Societies or to 
such officer as the Registrar may nominate in this behalf. 
 
 (3) On receipt of such notice, the Jagir Administrator, 
the local authority, the co-operative society or the scheduled 
bank, or the person entitled to maintenance, as the case 
may be, shall, within such time as, may, from time to time, 
be fixed by the Board, submit a statement to the Board 
showing the total amount of the debt due by the debtor as 
also any recurring liability against such debtor in respect of 
the liability for maintenance under the decree or order. 
 

In certain cases 
rent may be 
charged in lieu of 
profits. 

Notice to Jagir 
Administrator  
Co-operative 
Societies, 
Registrar Local 
authorities and 
other. 



20  [Act No. XII of 1952] 

 (4) The Jagir Administrator, the Co-operative Society 
and the scheduled bank shall also furnish a statement to the 
Board showing the amount of remission which the 
Government, the co-operative society or the scheduled 
bank, as the case may be, is willing to give in respect of the 
debt. 
 
 (5) The portion of any debt remitted under sub-section 
(4), and unless the Board otherwise directs any debt other 
than a debt due to Government or portion thereof in respect 
of which no statement is submitted under sub-section (3), 
shall be extinguished. 
 
31. After taking accounts under section 28 the Board shall 
in the manner hereinafter provided determine- 
 
 (1) the particulars of the property belonging to the 
debtor, 
 
 (2) the value ,of the said property, 
 
 (3) the particulars of any encumbrances on the said 
property, and 
 
 (4) the paying capacity of the debtor. 
 
32. (1) If in the course of the hearing of an application 
under section 11, the Board finds that the debtor has made 
an alienation of property or created any encumbrances 
thereon with intent to defeat or delay any of his creditors, 
the Board shall by notice, summon the debtor and the 
person in whose favour the alienation or encumbrance is 
made or created to appear before it on a day to be specified 
in the notice. 
 
 (2) On the day specified in the notice or such other day 
to which the hearing may be adjourned the Board shall hear 

Board’s duty to 
determine 
particulars, value, 
etc. of property. 

Fraudulent 
alienations or 
encumbrances 
void. 



[Act No. XII of 1952]  21 

the parties and if it is satisfied that the alienation was made 
or the encumbrance was created with intent to defeat or 
delay any of the creditors of the debtors, the Board shall 
declare the alienation or encumbrance to be void. 
 
 (3) Nothing in this section shall impair the rights of an 
alienee or the holder of an encumbrance in good faith and 
for valuable consideration. 
 
33. (1) Subject to the provisions of sub-sections (2), (3) 
and (4), the value of the property and other assets of a 
debtor for the purposes of ascertaning the paying capacity 
of the debtor under section 31 shall be determined by the 
Board in the prescribed manner. 
 
 (2) The property or assets which are exempt from 
attachment in execution of a decree of a civil court under the 
Code of Civil Procedure, 1908, shall not be taken into 
account. 
 
 (3) The amount of the debts mentioned in section 3 
shall be deducted. 
 
 (4) The market value of the lands, which under any law 
for the time being in force, are not transferable or alienable 
except with the previous sanction of the Collector or the 
Government, shall be calculated in such manner as may be 
prescribed 
 
34. The paying capacity of the debtor shall, for the 
purposes of this Act, be deemed to be sixty per cent of the 
value of all the property of the debtor: 
 
 Provided that when any portion of such property yields 
income but the market value of such portion cannot be 
determined, the value of such portion shall be the amount of 
the income capitalized at six per cent per annum. 

Value of property 
of debtor to be 
determined by 
Board in 
prescribed 
manner. 

Paying capacity. 



22  [Act No. XII of 1952] 

35. (1) Notwithstanding any law, custom, contract, award 
or decree of a Court to the contrary the amounts found due 
under section 28 from a debtor shall be further scaled down 
in the manner hereinafter provided. 
 
 (2) If all the debts found due by a debtor after taking 
accounts under section 28 are unsecured, such debt shall 
be further scaled down pro rata to the paying capacity of the 
debtor. 
 
 (3) If all the debts found due by a debtor after taking 
accounts under section 28 are unsecured, and the total 
amount of such debts is more than sixty per cent of the 
value of the property belonging to the debtor, such debts 
shall be further scaled down pro rata to the paying capacity 
of the debtor. 
 
 (4) If the debts found due by a debtor after taking 
accounts under section 28 are both secured and unsecured, 
and if the total amount of the secured debts is more than 
sixty per cent of the value of the property on which such 
debts are secured, the secured debts shall be further scaled 
down pro rata to sixty per cent of the value of the property 
on which debts are secured and the unsecured debts shall 
be further scaled down pro rata to sixty per cent of the value 
of the property belonging to the debtor over which no debts 
are secured. 
 
36. (1) After determining the amount of debts scaled down 
in the manner provided in section 35 the Board shall, save 
as otherwise provided in section 37 make an award. 
 
 (2) The award shall be in the prescribed form and shall 
be drawn up subject to the foIIowing provisions:- 
 

Debts payable by 
debtors to be 
scaled down. 

Award. 



[Act No. XII of 1952]  23 

  (i) the amount of the secured debts scaled down shall 
be charged on the properties on which they may have been 
secured; 
 
  (ii) subject to clause (i) the amount of unsecured 
debts shall be charged on all the properties of the debtor; 
 
  (iii) in fixing the priority in which debts shall be paid 
the following order shall be followed:- 
 
   (a) debts due to Government which are charged on 
the immovable property belonging to the debtor or which 
are recoverable as the current year’s land revenue, 
 
   (b) debts due to local authorities, which are 
charged on the immovable property belonging to the debtor 
or which are recoverable as the current year’s dues, 
 
   (c) secured debts in order of priority, 
 
   (d) debts due to Government, local authorities and 
other bodies including co-operative societies, and 
recoverable as arrears of land revenue, 
 
   (e) other debts due to co-operative societies, 
 
   (f) unsecured debts: 
 
 Provided that in the case of unsecured debts they shall 
be paid pro rata; 
 
  (iv) the total annual instalments shall not exceed 
twenty: 
 
 Provided that in fixing the amount of instalments in 
which the debts shall be paid the Board shall ascertain the 
net annual income of the debtor and the annual instalments 



24  [Act No. XII of 1952] 

payable by the debtor shall not exceed his net annual 
income. 
 
 Explanation:- For the purposes of this clause, the net 
annual income of the debtor shall mean the balance of his 
annual income after deducting (i) such sum as may be 
considered necessary for the payment of the liability, if any, 
imposed on the debtor under a decree or order for 
maintenance passed by a competent court, (ii) such sum as 
may be considered necessary for the maintenance of the 
debtor and his dependents, and (iii) the sum required by the 
debtor to pay the assessment and taxes in respect of the 
current year to Government and to local authorites; 
 
  (v) the Board may pass an order for the delivery of 
possession of any property notwithstanding any law or 
contract to the contrary; 
 
  (vi) the rate of interest shall not exceed 6 percent per 
annum or such less rate as may be notified in this behalf by 
the Government or the rate agreed upon between the 
parties when the debt was originally incurred or the rate 
allowed by the decree in respect of such debt whichever is 
the lowest. 
 
37. Where the amount of debts of the debtor as scaled 
down under section 35 exceeds half the value of the 
debtor’s immovable property as determined by the Board, 
the Board shall intimate to the creditors the amount of the 
said debts of the debtor and the said value of the debtor’s 
immovable property and call upon them to state in writing 
within a specified period not exceeding one month whether 
they agree to the further scaling down of the said debts so 
as to reduce them to a sum not exceeding half the said 
value of the immovable property of the debtor. If all the 
creditors agree to the further scaling down of the debts, the 
Board shall make an award directing the debtor to pay the 

Procedure for 
further scaling 
down of debts. 



[Act No. XII of 1952]  25 

amount of such debts so agreed upon within a period of 
one month from the date of the award. 
 
38. The amount of debts scaled down under section 35 or 
further scaled down under section 37 shall for the purposes 
of this Act be the amount due by the debtor in respect of the 
said debts and the portion of the debts in excess of this 
amount shall be extinguished. 
 
39. If the Board making an award under section 36 is at 
any stage of the proceeding satisfied- 
 
 (1) that the debtor had in collusion with any creditor 
furnished in such proceeding incorrect information in 
respect of the debt due by him to such creditor with a view 
to defeat the lawful claims of any other creditor, the Board 
may refuse to scale down any of the debts of such debtor in 
the manner provided in section 35 and may make an award 
for the full amount of the debts due from such debtor; 
 
 (2) that any claim by a creditor in such proceeding had 
been put forward in collusion between the debtor and such 
creditor with a view to defeat the lawful claims of any other 
creditor, the Board shall order that the debt due by the 
debtor to such creditor shall be extinguished and such debt 
shall not be recoverable. 
 
40. (1) Notwithstanding that the person for the settlement 
of whose debts an application has been made under section 
11 or any of his creditors does not appear on the date fixed 
for the hearing of the application or on any date to which it 
may be adjourned, the Board shall proceed ex parte to hear 
the application, beside the preliminary issues and, if 
necessary, make the award, on the evidence available. 
 
 (2) When an application made under section 11 is 
heard and disposed of ex parte under sub-section (1) the 

No recovery of 
amount in excess 
of debts scaled 
down. 

Ex parte 
proceedings if any 
party does not 
appear. 

Debts not to be 
scaled down in 
case of collusion. 



26  [Act No. XII of 1952] 

decision on the preliminary issues or the award shall not 
except for sufficient reasons, be reopened merely on the 
ground that any of the parties thereto did not appear at the 
hearing. 
 
41. If, after an award is made under section 36, the Board 

finds on an application made to it by any party or otherwise, 
that the debtor has other property which was not disclosed 
to the Board when the award was made, or that any 
property included in the award did not belong to the debtor, 
the Board may, notwithstanding anything contained in this 
Act, reopen the award and resettle the debts in accordance 
with the provisions of this Act: 
 
 Provided that where the Board is satisfied that the non-
disclosure of such property was in consequence of any 
fraud on the part of the debtor, the Board revising the award 
shall not give the debtor the benefit of section 35. 
 
42. (1) Every award made under this Act shall on payment 
of the court-fee payable under section 49, be registered 
under the Indian Registration Act, 1908, after the expiry of 
the period provided for an appeal, if any appeal is allowed 
but no appeal is filed and after the disposal of the appeal if 
an appeal is filed. 
 
 (2) The court-fee on the award shall be paid by the 
party ordered by the Board to bear the costs: 
 
 Provided that any creditor who is not ordered to bear 
the costs may pay such court-fee. Such creditor shall be 
entitled to recover the amount of court-fee paid by him from 
the debtor with the first installment payable to him under the 
award: 
 
 Provided further that no court-fee shall be payable by a 
co-operative society. 

Reopening of 
award and 
resettlement of 
debts. 

Award to be 
registered; how to 
be executed. 



[Act No. XII of 1952]  27 

 (3) The award so registered shall be executed as 
follows:- 
 

  (i) If the debtor makes default in the payment of any 
instalment due under the award to any creditor such creditor 
may apply in the prescribed form to the Board for execution 
of the award; 
 
  (ii) If the Board on receipt of such application is 
satisfied that the debtor has made default in the payment of 
the instalment the Board shall transfer the award for 
execution to the Collector and thereupon the Collector shall 
recover the amount of the instalment from the debtor as 
arrears of land revenue: 
 
 Provided that nothing in this sub-section shall affect the 
right of Government, a local authority or a co-operative 
society to have recourse to any mode of recovery allowable 
by any law for the time being in force. 
 
43. The Government may at any time on the ground of 
serious hardship to the debtor, if such hardship arose after 
the date of an award made under section 15, 16, 36 or 37 
postpone by any period not exceeding one year, the 
payment of any instalment or instalments due under the 
award. 
 
44. Notwithstanding any law or contract but subject to the 
provisions of section 45 no alienation of any property 
belonging to a debtor who is a party to any proceedings or 
award under this Act, made by him before all his debts are 
discharged shall be valid, except with the previous sanction 
of the Government. 
 
45. If the Board or the Court, hearing an Appeal against the 
award is at any time satisfied that it is in the interest of a 
debtor that any part of his property should be sold in 

Postponement of 
payment of 
instalment. 

No alienation by 
debtor before 
discharge of 
debts valid. 

Board may order 
sale of debtor’s 
property in 
liquidation of his 
debt. 



28  [Act No. XII of 1952] 

liquidation of his debt or part thereof such Board or Court 
may permit the debtor to sell such part of the property for 
such purpose within a specified period. If the debtor fails to 
sell it, such Board or Court may order an officer of the Board 
or Court to sell the same. The property ordered to be sold 
under this section shall be sold by such officer in the 
manner prescribed: 
 
 Provided that the part of the property ordered to be 
sold under this section shall not exceed the part liable to be 
sold under sub-section (2) of section 52. 
 
46. Except in proceedings under section 32 no pleader 
shall be entitled to appear on behalf of any party in any 
proceeding before the Board or the Court in appeal under 
this Act: 
 
 Provided that if the Board after examining the parties to 
any proceeding before it or the Court in appeal is of opinion 
that any of the parties is not sufficiently competent to 
represent his case and that in the interest of justice it is 
necessary to allow such party the assistance of any pleader, 
it may allow the parties to be represented at their own cost 
by a pleader: 
 
 Provided further that pleader’s fees shall not be 
allowed as part of the costs for the appearance of a pleader 
in any proceedings under this Act. 
 
47. Notwithstanding anything contained in any other law 
and save as otherwise provided in section 55, 
 
 (1) an appeal shall lie- 
 

  (i) from every order passed under sub-section (3) of 
section 15; 
 

Pleaders etc., 
excluded from 
appearance. 

Appeals. 



[Act No. XII of 1952]  29 

  (ii) from every order passed under section 24; 
 
  (iii) from every order passed under section 32; 
 

  (iv) from every order passed under sub-section (2) of 
section 40; 
 
  (v) from every award made under this Act other than 
an award made in terms of a settlement under sub-section 
(4) of section 15 or under section 16 or section 37 or’ an 
award before the making of which neither the debtor nor any 
of the creditors produced evidence to enable the Board to 
determine the amount of debt due from the 
debtor; 
 
 (2) an appeal from the Board shall lie to the High Court 
and such appeal shall be filed within 60 days of the decision 
or award of the Board computed in the manner prescribed 
in the Indian Limitation Act, 1908, so far as applicable; 
 
 (3) no second appeal shall lie against any decision, 
order or award of the Board under this Act. 
 
48. No decision or award of the Board shall be modified or 
set aside in appeal, except on any of the following grounds:- 
 
 (a) such decision or award was improperly procured, 
 
 (b) corruption or misconduct of the Board or any 
member thereof, in the conduct of the proceedings relating 
to such decision or award, 
 
 (c) any illegality or irregularity in the proceedings 
relating to such decision or award, which has occasioned 
failure of justice, 
 

Grounds of 
appeal. 



30  [Act No. XII of 1952] 

 (d) any error of law or erroneous appreciation of 
evidence which was occasioned failure of justice. 
 
49. (1) Notwithstanding anything contained in 15the 
Hyderabad Court Fees Act, court-fees payable in respect of 
proceedings under this Act shall be at the following rates:- 
 
  (i) on an application under sub-section (1) of section 
11 or section 15 or on an award under sub-section (4) of 
section 15 or section 16 - Re.1. 
 
  (ii) on an award other than an award specified in 
clause (iii)- Re.1 for every hundred rupees, or part thereof, of 
the amount of the award, subject to a maximum of Rs.50; 
 
  (iii) on an appeal against a decision of the Board 
under sub-section (3) of section 15 or sub-section (2) of 
section 24 - Rs.2; 
 
  (iv) on an appeal other than an appeal specified in 
clause (iii) Re.1 for every hundred rupees, or part thereof, of 
the amount of the award, subject to a maximum of Rs.50. 
 
 (2) Notwithstanding anything contained in any law, the 
court-fees payable in respect of proceedings under this Act 
shall be a first charge on the property of the party ordered to 
pay the costs and shall be recoverable in such manner as 
may be prescribed. 
 
50. Any notice required to be served under this Act shall be 
served in the manner provided in the Code of Civil 
Procedure, 1908; and when rules are made in that behalf in 
such manner as may be prescribed. 
 

                                                           
15. Repealed by A.P. Act IV of 1958.  

Court-fees. 

Notice how 
served. 



[Act No. XII of 1952]  31 

51. Save as otherwise expressly provided in this Act, the 
provisions of the Code of Civil Procedure, 1908 shall apply 
to all proceedings under this Chapter. 
 

CHAPTER IV. 

INSOLVENCY PROCEEDINGS. 
 

52. (1) If at any stage of the proceedings under Chapter III 
the Board finds that income of the debtor and his movable 
property are not sufficient to allow his debts to be liquidated 
by annual instalments not exceeding twenty in number, the 
Board shall make an order adjudicating the debtor an 
insolvent. 
 
 (2) After the debtor has been adjudicated an insolvent, 
the Board shall direct that such portion of the property of the 
debtor liable to attachment and sale under section 60 of the 
Code of Civil Procedure, 1908 excluding such portion 
thereof as the Government shall from time to time notify in 
the 16[Official Gazette] as minimum necessary for the 
maintenance of the debtor and his dependents, as may be 
required to liquidate all the debts of the debtors shall 
immediately be sold free of all encumbrances in liquidation 
of all debts outstanding against such debtor. 
 
53. The order of adjudication made under section 52 shall 
have the force of an order made by a competent Court in 
the exercise of its powers under 17the Andhra Pradesh 
(Telangana Area) Insolvency Act, 1351 F. 
 
54. The proceeds realised by the sale of the property of the 
insolvent under section 52 shall be distributed in the order of 
priority specified in clause (iii) of sub-section (2) of section 
36. 

                                                           
16. Substituted for the word “Jarida” by the A.P.A.O., 1957. 
17. This Act was repealed by Act No.23 of 1965. 

Provisions of Civil 
Procedure Code 
to apply to 
proceedings. 

Procedure in 
insolvency 
proceedings. 

Act VIII of 1351 F. 

Distribution of 
assets of 
insolvent. 

Board to declare 
debtor insolvent in 
certain 
circumstances. 



32  [Act No. XII of 1952] 

55. No application or proceeding in regard to the 
insolvency of a debtor shall lie in or shall be dealt with 
otherwise than by the Board or where an appeal lies by the 
Court of appeal. 
 
56. No appeal shall lie from any order passed under this 
Chapter except on the ground that the insolvent has failed to 
disclose all the material facts relating to his assets and 
liabilities. 
 

CHAPTER V. 

MISCELLANEOUS. 
 

57. In computing the period of limitation for the institution 
of any suit or proceeding in respect of any debt due from 
any person who is held not to be a debtor by the Board or 
the Court in appeal the period during which the proceedings 
were pending before the Board or Court in appeal in respect 
of such debt shall be excluded. 
 
58. (1) Save as otherwise provided in this Act no person 
who is a party to any proceedings or award under this Act 
and who is indebted to any person authorized to advance 
loans under section 59 shall mortgage, hypothecate or sell 
his property without the previous sanction of such person 
until such loan has been repaid in full. 
 
 (2) Any person who mortgages, hypothecates or sells 
any property in contravention of sub-section (1) shall, on 
conviction, be punishable with imprisonment for a term 
which may extend to six months or with fine which may 
extend to Rs. 500 or with both. 
 
 (3) No Criminal Court shall take cognizance of any 
offence under this section except on the complaint in writing 
of the Board or Court before which the proceedings were 
held or which made the award. 

Bar to application 
in insolvency in 
other Courts. 

Appeals barred. 

Period of 
proceedings 
before Board 
under this Act to 
be excluded. 

Alienation of 
property before 
repayment of loan 
prohibited. 



[Act No. XII of 1952]  33 

59.  (1) The Government may by notification in the 
18[Official Gazette] authorize in any local area any person to 
advance loans to debtors who are parties to any 
proceedings under this Act or in respect of whose debts a 
settlement has been made under this Act. 
 

 (2) Such authority shall be granted on such conditions 
as may be prescribed. 
 
60. (1) The Government may by notification in the 18[Official 
Gazette] and subject to the condition of previous publication 
from time to time make rules for carrying into effect the 
purposes of this Act. 
 
 (2) In particular, and. without prejudice to the generality 
of the foregoing provision, such rules may be made for all or 
any of the following purposes, namely:- 
 
  (a) the form of application under sub-section (2) of 
section 11 and the manner of signing, verification and 
presentation; thereof; 
 
  (b) the form of application and the manner of signing 
and verification thereof under sub-section (2) and the 
manner of giving notice under sub-section (3) of section 15; 
 
  (c) the manner of giving notice and publication of 
general notice and the form of statement to be submitted 
under section 21; 
 
  (d) the inventories of property, lists of creditors and of 
debtors and of debts due to and from a debtor, the 
examination in respect of property of creditors; the time at 
which the debtors shall attend before the Board and do 
other things in relation to property under sub-section (1) of 
section 23, and the production of books of account, the 
                                                           
18. Substituted for the word “Jarida” by the A.P.A.O., 1957. 

Power of 
Government to 
authorise any 
person to 
advance loans to 
debtors. 

Rules. 



34  [Act No. XII of 1952] 

examination to be submitted to, and the information to be 
supplied by a creditor in respect of the debt due to him by 
the debtor under sub-section (2) of section 23; 
 
  (e) the manner of determining the value of property 
and other assets under sub-section (1) and the manner of 
calculating the market value of the lands under sub-section 
(4) of section 33; 
 
  (f) the form of award under sub-section (2) of section 
36 and under section 37; 
 

  (g) the form of application under clause (i) of  
sub-section (3) of section 42; 
 

  (h) the manner in which property may be sold under 
section 45; 
 

  (i) the manner of recovery of court-fees under  
sub-section (2) of section 49; 
 

  (j) the manner of service of notice under section 50; 
 

  (k) the conditions on which authority to grant loan 
shall be granted under sub-section (2) of section 59; 
 
  (l) any other matter which may be prescribed under 
this Act. 
 
61. No debts or liabilities to which this Act applies shall be 
dealt with or form the subject matter of any proceedings 
under 19[the Andhra Pradesh (Telangana Area) Agricultural 
Debtors’ Relief Act, 1956]. 
 

* * * 
                                                           
19. This Act is repealed by the Telangana Adaptation of Laws (No.2) 
Order, 2016 issued in G.O.Ms.No.46, Law (F) Department, dated 
01.06.2016. 

Operation of Act 
XVI of 1956 
excluded from 
debts to which the 
present Act 
applies. 

Act XVI of 1956. 


	‎E:\Uploading PDF Documents\Uploading word 1951-1960\1952 - (4)\XII of 1952 The Telangana Jagirdars Debit Settlement Act, 1952\Index.docx‎
	‎E:\Uploading PDF Documents\Uploading word 1951-1960\1952 - (4)\XII of 1952 The Telangana Jagirdars Debit Settlement Act, 1952\Act 12 of 1952.docx‎