THE UNITED PROVINCES DEBT REDEMPTION ACT, 1940

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THE UNITED PROVINCES DEBT REDEMPTION 

ACT, 1940 

(U.P. Act No. XIII of 1940)



2 

THE UNITED PROVINCES DEBT REDEMPTION ACT, 1940 

(U. P. Act No. XIII of 1940)1

Amended by 

United Provinces Act No. VI of 1941 

United Provinces Act No. VI of 1942 

Adapted and modified by the Adaptation of Laws Order, 1950 

[Received the assent of the Governor General on December 21, 

1940, and was published in the United Provinces Government 

Gazette, on December 28, 1940.]1  

An Act to provide for further relief from indebtedness to 

agriculturists and workmen. 

Whereas it is expedient to for further relief from indebtedness 

to agriculturists and workmen in the United Provinces ; 

And whereas by the Proclamation, dated the third day of 

November, 19392, promulgated under section 93 of the Government 

of India Act, 1935, the Governor of the United Provinces has assumed 

to himself all powers vested by or under the aforesaid Act in the 

Provincial Legislature ; 

And whereas the continuance in force of the said 

Proclamation has been approved by a resolution of both Houses of 

Parliament ; 

Now, therefore, the Governor in exercise of the powers 

aforesaid is pleased to make the following Act ; 

CHAPTER–I 

PRELIMINARY 

Short title, 
extent and 

commencement 

1. (1) This Act may be called the United Provinces Debt

Redemption Act, 1940. 

(2) It extends 3  to the whole of [Uttar Pradesh] 4  except the 

Jaunsar Bawar paragana of the Dehra Dun district and the portion of 

the Mirzapur district south of the Kaimur Range. 

(3) It shall come into force on such date5 as the Governor may, 

by notification in the Official Gazette, appoint. 

—————————————————————————————————————————— 
1. This Act was made by the Governor in exercise of the powers assumed by him by the Proclamation. D.

Nov. 3, 1939, issued under Sec. 93 of the G. of I. Act, 1935, and was published, with S. O. R. in Gaz,. 

1942. Pt. VII-A. pp. 7-8. It was re-enacted and continued by s. 2 and Sch. of U. P. Act XIII of 1948. 

2. See Gaz., Extra., d Nov. 3, 1939.

3. This act has been extended to the portion of the Mirzapur District, lying south of the Kaimur rang, see not

no. 93/I-134-43. d, Aug. 24, 1945. pt. I, P.268. The Act has also been extended to the merged States of

Rampur, Banaras and Tehri-Garhwal by the Rampur (Application of Laws) Act, 1950 and the Banaras and

Tehri-Garhwal Application of Laws) Orders, 1949, respectively.

4. Subs. by the A. O. 1950 for (the United Provinces).

5. The Act came into force on January 1, 1941, see notification no. 158 (1)/1-39 at December 13, 1940,
published in Gazette on December 28, 1940, Pt. 1., P. 822



[The United Provinces Debt Redemption Act, 1940] 

3 

2. In this Act unless there is anything repugnant in the subject

or context — 

(1) subject to the provisions of the following sub-section, all 

words and expression which are defined or explained in the United 

Provinces Land Revenue Act 1901, or the United Provinces Tenancy 

Act, 1939, shall have the meaning assigned to them therein ;    

Interpretation 

(2) “agricultural produce” means the agricultural produce of an 

agriculturist raised by him or by his servants or by labour hired by 

him and includes crops, whether standing or gathered, and the fruit 

and flowers of trees and plants ; 

(3) “agriculturist” means a proprietor of a mahal or of a share in 

or portion of a mahal or a tenant ; 

Provided that no such proprietor or tenant shall be deemed to 

be an agriculturist if — 

 (a) the aggregate of the rent, if any, and of ten times the 

local rate, if any, payable by him exceeds one thousand rupees, 

or  

(b) he is assessed to income-tax under the Indian Income-

tax Act, 1922 or under the income-tax law of an Indian State ; 

Provided further that no person shall be deemed to be a 

proprietor or tenant merely by reason of his having acquired 

proprietary or tenancy rights, otherwise than by inheritance or 

survivorship, after the first day of June, 1940.  

Explanation I — Where a proprietor or a tenant has a 

subsisting interest in land, but by a reason of a temporary transfer 

does not for the time being pay the rent or local rate payable in respect 

of that land, such rent or local rate shall, for the purposes of this sub-

section, be deemed to be payable by him.   

Explanation II— If on account of a fall in the price of 

agricultural produce a temporary remission has been made in the land 

revenue payable by a proprietor or in the rent payable by a tenant, the 

local rate payable by such proprietor shall, for the purposes of this 

sub-section be deemed to have been reduced in the same proportion 

as the land revenue and the rent payable by such tenant shall be 

deemed to be the rent as reduced by such temporary remission in 

rent. 

(4) “bank” means  a company which carries on the business of 

banking and was before the first day of June, 1940, registered under 

any of the enactments relating to companies for the time being in force 

(in India or)1  in the United Kingdom or in any of the colonies or 

dependencies thereof  [ * * * ]2 or incorporated by an Act of Parliament 

(of the United kingdom)3 or by Royal Charter or Letters Patent or by 

(Central Act)4 ; 

—————————————————————————————————————————— 
1. Ins. by the A. O. 1950.

2. The words (or in British India or in any Indian State) omit, by ibid.

3. Ins. by ibid.

4. Subs. by ibid the Central Legislature.



[The United Provinces Debt Redemption Act, 1940] 

4 

(5) “co-operative society” means a society registered or 

deemed to be registered under the provisions of the Co-operative 

Societies Act, 1912 ; 

(6) “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 ; 

(7) “interest” means the return to be made over and above 

what was actually advanced, whether the same is charged or sought 

to be recovered specially by way of interest, or usufruct or service to 

be rendered or otherwise ;  

(8) “land” means land in a mahal in [Uttar Pradesh)]1 but does 

not include land occupied by buildings or appurtenant thereto or 

land within the limits of any municipality, cantonment or notified 

area ; 

(9) “loan” means an advance in cash or kind made before the 

first day of June, 1940 ; recoverable from an agriculturist or a 

workman or from any such person and other persons jointly or from 

the property of an agriculturist or workman and includes any 

transaction which in substance amounts to such advance, but does 

not include an advance the liability for the repayment of which has 

by a contract with the borrower or his heir or successor or by sale in 

execution of a decree been transferred to another person or an 

advance by the Central or [State Government]2 or by a local authority 

authorized by the [State Government]2 to make advances or by a co-

operative society or by a scheduled bank ;   

Provided that an advance recoverable from an agriculturist or 

from an agriculturist and other persons jointly shall not be deemed 

to be a loan for the purposes of this Act unless such advance was 

made to an agriculturist or to and agriculturist and other persons 

jointly. 

3[(10)  “local rate” means the rate, which under the United 

Provinces Local Rates Act, 1914, is payable by, or recoverable from 

an agriculturist possessing heritable and transferable rights ], 

(11) “prescribed” means prescribed by this Act or by rules 

made thereunder ; 

(12) “principal” means the amount originally advanced ; 

(13) “proprietor” includes a superior proprietor and an inferior 

proprietor but does not include a mortgagee or in Agra a superior 

proprietor to whom the provisions of section 77 of the United 

Provinces Land Revenue Act, 1901, apply ; 

(14) “rent” does not include sayar ; 

—————————————————————————————————————————— 
1. Subs. by the A. O. 1950 (the United Provinces.)

2. Subs. by the A. O. 1950 for (Provl. Govt.)

3. Subs. by s. 2 of U. P. Act VI of 1942, made by the Governor in exercise of the powers assumed by him

under s. 93 of the G. of I. Act, 1935, for the following ;

(10) “local rate” means the rate payable by, or recoverable from, a proprietor under the provisions of the U.

P. Local Rates Act, 1914.’ It was re-enacted and continued by s. 2 and Sch. of U. P. Act XIII of 1948.

https://upvidhai.gov.in/UPCODE/Attatchment/Act/ACT_20220926160527076_6_of_1942.pdf


[The United Provinces Debt Redemption Act, 1940] 

5 

 (15) “scheduled bank” means any bank included at the 

commencement of this Act in the Second Schedule to the Reserve Bank 

of India Act, 1934 ; 

(16) “secured loan” means a loan the repayment of which has 

been secured by a mortgage of or charge on specific property, or by a 

pledge ; 

(17) “Suit to which this Act applies” means any suit or 

proceeding relating to a loan, but does not include proceedings under 

the provisions of the United Provinces Encumbered Estates Act, 1934 ; 

(18) “tenant” includes a person entered in the register 

maintained under the provisions of clause (b) or clause (c) of section 32 

of the United Provinces Land Revenue Act, 1901, a rent-free grantee at a 

favorable rate of rent and  a sub-tenant but does not include a grove 

holder or a thekadar ;    

(19) “unsecured loan” means a loan which is not a secured loan; 

(20) “workman” means a person who is not a proprietor or a 

tenant and — 

(a) who earned wages within the meaning of sub-section (vi) 

of section 2 of the Payment of Wages Act, 1936, within the twelve 

months preceding the first day of June, 1940, which did not 

exceed Rs. 600 in the said twelve months and did not exceed 

Rs. 60 in any such month, or 

(b) who does not ordinarily reside within a municipality, 

cantonment or notified area and who belongs to one of the 

classes specified in the first Schedule. 

3. For the purposes of this Act —

(a) in any proceeding relating to an advance, pending when 

this Act comes into force or instituted thereafter, the status of 

the debtor who is a party to such proceeding shall be deemed to 

be the status which he had, at the commencement of the Act, or 

on the date of the institution of the proceedings, as the case may 

be ;  

Explanation 

(b) rent which has been remitted or suspended either in 

whole or in part, on account of a failure of the crop shall be 

deemed to be payable in the year in which it was so remitted or 

suspended ; 

(c) local rate in respect of which a notification of exemption 

has been issued under the provisions of section 15 of the United 

Provinces Local Rates Act, 1914 shall be deemed to be payable ; 

(d) a joint proprietor or a joint tenant shall be deemed to be 

the proprietor or tenant of so much of the joint property or joint 

tenancy, not being the property or tenancy, as the case may be, 

of a joint Hindu family, as appertains to his share ; 



[The United Provinces Debt Redemption Act, 1940] 

6 

(e) where the aggregate of the rent and ten times the local 

rate, if any, payable by a joint Hindu family — 

(i) does not exceed one thousand rupees, such family and 

every member of it shall be deemed to be an agriculturist ;  

(ii) exceeds one thousand rupees, a member of such family 

shall be deemed to be an agriculturist only if the aggregate of 

the rent and ten times the local rate payable in respect of his 

share and the shares of his male lineal ascendants and 

descendants in the joint family property, does not exceed one 

thousand rupees : 

Provided that no joint Hindu family or any member of it shall be 

deemed to  be an agriculturist if such family or member is assessed to 

income-tax, or in the case of a member of such family if  the aggregate 

of the rent and ten times the local rate payable in respect of such 

member’s share and the shares of his male lineal ascendants and 

descendants in the joint family property and in respect of his self-

acquired property , if any, exceeds one thousand rupees ; 

(f) a loan shall not be deemed to be due jointly from an 

agriculturist or workman and another person if such other 

person’s liability in connexion with such loan is that of a surely 

and such person and such agriculturist or workman shall not 

be deemed to be joint debtors.  

Cases in 
which 

provisions of 
the Act shall 
not apply. 

4. (1) The provisions of this Act shall not apply to a suit for the

recovery of a loan from an agriculturist where the creditor declares in 

accordance with the provisions of sub-section (2) that if a decree is 

passed in his favour either for the whole or part of the claim such 

decree shall not be executed against the land, agricultural produce or 

person of such agriculturist.   

(2) The declaration mentioned in sub-section (1) shall in the 

case of a suit pending at the commencement of this Act, be made at 

any time before the decision of the suit and in the case of a suit 

instituted after the commencement of this Act, in the plaint.  

(3) No decree recoverable from an agriculturist shall be 

amended under the provisions of this Act if the creditor declares that 

such decree shall not be executed against the land, agricultural 

produce or person of such agriculturist : 

Provided that no such declaration shall be made in a suit or 

proceeding relating to a loan recoverable from an agriculturist who also 

belongs to one of the classes specified in clause (a) or clause (b) of sub-

section 20 of section 2 ;  

Provided further that where in a suit decided after the 

commencement of this Act the creditor has had an opportunity of 

making the declaration required by sub-section (1) no declaration 

shall, in proceedings for the execution of a decree obtained by the 

creditor in such suit be made by the decree-holder under 

sub-section (3) ;  



[The United Provinces Debt Redemption Act, 1940] 

7 

Provided also that no declaration shall be made under sub-

section (3), where the creditor has already applied for execution 

against the land, agricultural produce or person of such agriculturist. 

(4) Where a declaration has been made under the provisions of 

this section no order shall be made for the execution of the decree 

against the land, agricultural produce or person of the agriculturist in 

respect of whom the declaration was made or his heir or successor, 

and the court shall record a direction to this effect in the decree. 

CHAPTER–II 

SUITS AND DECREES ON LOANS 

5. Where causes of action in respect of a loan and in respect

of an advance in cash or kind made on or after the first day of June, 

1940, have been joined in one suit, the court shall order separate 

trials in respect of the claim based on such loan and in respect of 

that based on such advance. 

Separate trials 

6. Notwithstanding anything contained in any other

enactment for the time being in force, every suit to which this Act 

applies shall be instituted in a court within the local limits of the 

jurisdiction of which— 

Form of suits 

(a) the defendant or, if there are more than one, any of 

the defendants ordinarily resides ; or  

(b) in case the defendant or, if there are more than one, 

all the defendants, reside without the limits of [Uttar 

Pradesh]1 ; 

(i) the holding or the land of the defendant or, if there are 

more than one, of any of the defendants is situate ; or 

(ii) the defendant or, if there are more than one, any of 

the defendants carries on the trade or profession by virtue of 

which he is a workmen.  

7. Notwithstanding the terms of any, contract regarding the

date or dates on which a loan shall become due, a suit to which this 

Act applies for the redemption of a mortgage or for accounts may be 

instituted by a debtor at any time after the commencement of 

this Act. 

Debtors right 

to sue. 

8. Notwithstanding the provisions of any decree or of any law

for the time being in force, an agriculturist or workman liable to pay 

the amount due under  a decree to which this Act applies passed 

before the commencement of this Act, may apply to the civil court 

which passes the decree or to which the execution of the decree has 

been transferred, for the amendment of the decree by reduction 

according to the provisions of this Act of the amount due under it, 

and on receipt of such application the court shall, after notice to the 

opposite party, calculate the amount due from the applicant in 

accordance with the provisions of sections 9 and 10 and shall amend 

the decree accordingly: 

Amendment of 
decrees. 

—————————————————————————————————————————— 
1. Subs. by the A. O. 1950 for [the United Provinces].



[The United Provinces Debt Redemption Act, 1940] 

8 

Provided that if the decree was passed by a court outside [Uttar 

Pradesh]1, it shall not be executed against the land or agricultural 

produce or person of the judgment-debtor unless the decree-holder 

agrees to an amendment of the decree in accordance with the 

provisions of this Act.  

(2) A decree amended under the provisions of sub-section (1) 

shall be deemed to bear the date of the original decree. 

(3) In amending a decree under the provisions of this section 

the court shall accept the findings on which the decree was based 

except in so far as they are inconsistent with the provisions of section 9.  

Accounting 
and determi-

nation of the 
amount due 

9. (1) In a suit to which this Act applies or in amending a decree

under the provisions of section 8, the court shall, notwithstanding 

anything to the contrary in any law, decree or contract or in any 

agreement purporting to close part transactions, determine the 

principal and take into account all sums paid by or on behalf of the 

debtor and in the case of a mortgage with possession, the net profit 

realized by the mortgagee or which with the exercise of ordinary 

diligence might have been realized by him, and shall determine the 

amount, if any, due by the debtor in accordance with the provisions of 

the following sub-sections : 

Provided that for the purpose of determining the principal, the 

court shall treat as principal any accumulated interest which has been 

converted into principal any statement or settlement of account or by 

any contract in the course of the transaction before the first day of 

January, 1917, but shall treat as interest any accumulated interest 

which has been converted as aforesaid at any such statement, 

settlement or contract made on or after that date.   

(2) The amount due by the debtor shall not exceed the amount 

that would have been due if the rate of interest had been, in the case of 

a secured loan, four and a half percent, per annum simple interest, 

and in the case of an unsecured loan six per cent. per annum simple 

interest.    

(3) The amount due by the debtor as interest shall not exceed 

the amount of the principal outstanding on the date on which the 

amount due by the debtor is determined.  

(4) Nothing in this section shall entitle the debtor to a refund of 

any sum already paid by him.   
Rate of 

interest on 
decrees 

10. (1) Notwithstanding anything contained in section 34 of the

Code of Civil Procedure, 1908, the court shall not order future interest 

on the aggregate sum adjudged in a decree to which this Act applies or 

in a decree amended under the provisions of this Act, at a rate 

exceeding three percent. per annum simple interest.    

(2) If in a decree to be amended under the provisions of this Act 

a higher rate of future interest has been allowed by the court passing 

the decree such rate shall, with effect from the date of the decree, be 

reduced to a rate permitted by the provisions of sub-section (1) and the 

decree shall be amended accordingly.  

—————————————————————————————————————————— 
1. Subs. by the A.O. 1950 for (the United Provinces).



[The United Provinces Debt Redemption Act, 1940] 

9

 (3) When a decree is executed by the grant of a mortgage 

under the second proviso to sub-section (1) of section 17, then, 

notwithstanding a different rate in the decree, the rate of interest 

shall from the date when such mortgage is granted, be deemed to be 

three per cent. per annum. 

11. In any proceeding relating to a loan due jointly form

several persons any of whom is an agriculturist or a workman the 

court shall apportion the loan between the joint debtors and the 

provisions of this Act shall apply only to that part of the loan which is 

apportioned to the joint debtor who is an agriculturist or a workman. 

Apportionment 

of loans.   

12. Nothing in this Act shall prevent the institution of a suit

for the recovery of a loan against a surety jointly with the debtor or 

separately, as the case may be, but no decree shall be passed in such 

suit against a surety for an amount in excess of that for which a 

decree would have been passed against the agriculturist or workman 

from whom the loan is recoverable. 

Suits against 
sureties. 

CHAPTER–III 

EXECUTION OF DECREES 

13. (1) The provisions of this chapter shall not apply to the

execution of a decree based on a loan advanced by a bank. 

(2) The provisions of sections 16 and 17 shall not apply to the 

hill pattis of the Kumaun Division.   

Exemption and 
extensions. 

(3) In areas to which the Bundelkhand Alienation of Land Act, 

1903, extends the provisions of sections 16 to (18)1 shall not apply to 

the land of a member of a tribe which by virtue of a notification 

issued under section 4 of that Act is deemed to be an agricultural 

tribe for the purposes of that Act. 

2[Provided that in such areas a member of such tribe who has 

made an application under section 4 of the United Provinces 

Encumbered Estates Act, 1934, shall, notwithstanding the provisions 

of section 39 of that Act, be entitled to the benefit of section 19 as if 

this sub-section did not bar the application of the provisions of 

section 17 to his land.] 

(4) For the purposes of sections 16 to 19 the expressions 

“agriculturist” “loan” and “decree to which this Act applies” shall be 

interpreted as if the first proviso to sub-section (3) of section 2 were 

omitted.  

14. Notwithstanding anything in the Code of Civil Procedure,

1908, not more than one-third of the agricultural produce of a 

judgment-debtor shall be liable to attachment in execution of any 

decree or decrees to which this Act applies.  

Attachment of 
agricultural 
produce 
restricted.  

—————————————————————————————————————————— 
1. Subs. for ’19’ by s. 2 (a) of U. P. Act VI of 1941, made by the Governor in exercise of the powers assumed

by him under s. 93 of the G. of I. Act, 1935. 

2. Add.  by  s.  2  (b)  of  ibid.

https://upvidhai.gov.in/UPCODE/Attatchment/Act/ACT_20220926160405992_6_of_1941.pdf


[The United Provinces Debt Redemption Act, 1940] 

10 

Limitation 
for execution 
of decree 

against 
agricultural 
produce. 

15. (1) Notwithstanding anything in the Code of Civil

Procedure, 1908, no order shall be made for the execution of a decree 

to which this Act applies against the agricultural produce of a 

judgment-debtor after the expiration of six years, in the case of such 

decrees passed before the commencement of this Act, from the date of 

such commencement, and in the case such decrees passed after the 

commencement of this Act, from the date of the decree, or where the 

decree directs any payment of money to be made at a certain date or at 

recurring intervals, from the date of default in making the payment in 

respect of which the decree-holder seeks to execute the decree : 

Provided that nothing in this sub-section shall be deemed to 

authorize the execution of a decree to which this Act applies against 

the agricultural produce of a judgment-debtor if such execution would 

have been barred by the provisions of section 6 of the United Provinces 

Agriculturists Relief Act, 1934, had the said section been in force at 

the date of such execution.   

(2) Nothing in this section shall be deemed to extend the period 

of limitation for an application for the execution of a decree.  

Execution of 

decree 
against land 

16. (1) Notwithstanding anything in the Code of Civil

Procedure. Act V of 1908, when the land of an agriculturist is sought 

to be sold in execution of a decree to which this Act applies the court 

executing the decree shall proceed in accordance with the provisions of 

the following sub-sections : 

Provided that if at any time before such land is transferred in 

accordance with the provisions of this section, such agriculturist 

applies in writing to the court executing the decree stating that he 

desires to have the land put to sale, the court shall sell it in 

accordance with the provisions of the Code of Civil procedure, 1908. 

(2) Where such decree is based on a loan made before the first 

day of January, 1931, or where it is based on a series of transaction 

any of which took place before that date, the court shall, in accordance 

with rules made by the [State Government]1  determine the annual 

value of such land in the agricultural year 1337 Fasli and in the 

agricultural year in which the decree is sought to be executed by sale 

and shall calculate the value of such land by multiplying whichever of 

these annual values is the greater by the prescribed multiple. 

(3) In the case of any other decree to which this Act applies the 

court shall in accordance with rules made by the (State Government) 1 

determine the annual value of such land in the year in which the 

decree is south to be executed by sale and shall calculate the value of 

such land by multiplying the annual values by the prescribed multiple. 

(4) If the value so determined is less than or equal to the 

amount of such decree together with the proportionate amount of any 

prior encumbrance, the court shall transfer such land to the decree-  

holder.  

—————————————————————————————————————————— 
1. Subs. by the A. O. 1950 for provincial Government.



[The United Provinces Debt Redemption Act, 1940] 

11 

 (5) If the value so determined is greater than the amount of 

such decree together with the proportionate amount of any prior 

encumbrance, the court shall determine the portion of such land the 

value of which determined in accordance with the provisions of sub-

section (2), or sub-section (3) is equal to the amount of the decree 

together with the proportionate amount of such prior encumbrance 

and shall transfer such portion to the decree-holder.    

 (6) When land so transferred under the provisions of this 

section the decree shall be deemed to be satisfied up to the value of 

such land as determined under the provisions of this section and all 

the rights of the agriculturist in such land shall be deemed to have 

been sold to the decree- holder.  

17. (1) Notwithstanding anything contained in section 16 or in

and other law for the time being in force — 

(a) the land of an agriculturist, the local rate payable by 

whom or recoverable from whom does not exceed twenty-five 

rupees per annum, shall not be sold or otherwise transferred 

in execution of  a decree to which this Act applies, nor shall  a 

final decree for foreclosure be passed in respect of such land, 

and    

Protection of 
certain land 
from sale or 
transfer 

(b) in the case of any other agriculturist — 

(i) only so much of his land may be sold or otherwise 

transferred in execution of a decree to which this Act applies ; 

or 

(ii) a final decree for foreclosure may be passed in respect 

of only so much of his land, as would, after such sale or 

transfer or foreclosure leave with him land the local rate 

payable in respect of which would be at least rupees twenty-

five per annum : 

Provided that in the permanently settled areas of the Benares 

Division and the Azamgarh District the local rate on the 

agriculturist’s land shall, for the purposes of this section, be deemed 

to be twice the local rate actually payable on it ; 

1 [(Provided further that in Oudh the local rate recoverable 

from an under-proprietor shall , for the purposes of this section, be 

deemed to be the local rate payable by the superior-proprietor as 

such) ; 

Provided [also]2 that the court may execute a decree to which 

this Act applies by granting to the decree-holder a self-liquidating 

usufructuary mortgage, for a period of not more than twenty years, of 

such land as is protected from sale, transfer or foreclosure by the 

provisions of this section ; 

—————————————————————————————————————————— 
1. Ins. by s. 3 of U. P. Act VI of 1942, made by the Governor in exercise of the powers assumed by him under

sec. 93 of the G. of I Act, 1935. It was reenacted and continued by U. P. Act XIII of 1948. 

2. Subs. for  [further] by ibid.

https://upvidhai.gov.in/UPCODE/Attatchment/Act/ACT_20220926160527076_6_of_1942.pdf


[The United Provinces Debt Redemption Act, 1940] 

12 

Provided also that when a mortgage has been granted under 

the provisions of this section the same land shall not be mortgaged in 

execution of any other decree to which this Act applies against the 

same debtor or his heir or successor if the term of the mortgage 

together with the term or terms of previous mortgage or mortgages 

exceed twenty years. 

(2) The form, terms and conditions of a mortgage granted 

under the second proviso to sub-section (1) and the amount to be 

paid by the debtor at any time for the redemption of such mortgage 

shall be such as may be prescribed. 
Procedure 
where several 

decrees are 
executed 
simultaneously 

18. Where several persons holding decrees to which this Act

applies move the court, before it has granted a mortgage-under 

section 17, for execution of their decrees by grant of a mortgage of 

land protected under that section, the court shall, subject to the 

provisions of that section, observe the following principles in 

executing the decrees.  

(a) If any such decree is based on a loan the payment of 

which is already secured by a mortgage of the whole or part of 

the land so protected (hereinafter described as a secured 

decree) the holder of such decree shall first be granted a 

mortgage of the protected land already mortgaged to him, and 

the holder of a decree based on an unsecured loan (hereinafter 

described as an unsecured decree) shall be granted a mortgage 

of the remaining protected land, if any. 

(b) Where there are more than one secured decrees and 

also unsecured decrees — 

(i) and different portions of the protected land are 

mortgaged in the secured decrees, the holder of each such 

decree shall be granted a mortgage of the portion which is 

already mortgaged to him ; 

(ii) and the same protected land is mortgaged in more 

than one decree, mortgages shall be granted to the holders of 

such decrees in order of their priority ; 

(iii) and if after grant of mortgages under sub-clause (i) 

and (ii) there remains any protected land free from such 

mortgages, the holders of the unsecured decrees shall be 

granted mortgaged thereof.  

(c) As among persons holding unsecured decrees, such 

persons shall each be granted simultaneously mortgages of 

ratable shares of the land in such manner as may be 

prescribed.  

Application to 
U. P. 

Encumbered 
Estates Act 
1934. 

19. The land of an agriculturist which by the provisions of

clauses (a) and (b) of sub-section (1) of section17, would be protected 

from sale in execution of a decree to which this Act applies shall in 

proceedings under the United Provinces Encumbered Estates Act, 

1934, be deemed to be protected land as defined in that Act.  



[The United Provinces Debt Redemption Act, 1940] 

13 

20. (1) When land is transferred in accordance with the

provisions of section 16 such transfer shall for the purposes of section 

89 of the Indian Registration Act, 1908, be deemed to be a sale of 

immovable property. The court shall grant a certificate of transfer for 

which the decree-holder shall pay stamp duty according to the 

valuation of the land so transferred.  

(2) When a decree is executed by the grant of a mortgage under 

the provisions of the second proviso to sub-section (1) of section 17, 

the court shall grant a certificate of mortgage with such particulars as 

may be prescribed and shall follow the procedure laid down in sub-

section (2) of section 89 of the Indian Registration Act, 1908, as if such 

certificate was a certificate of sale of immovable property and the 

registering officer shall file the copy of the certificate in his Book no. 1. 

Such certificate of mortgage shall be exempt from stamp duty. 

Court to grant 
certificates of 
transfer or 

mortgage in 
cases of 
transfer or 

mortgage, as 
the case may 
be, of debtors’ 
property in 

execution of 
decree  

21. Notwithstanding anything contained in rule 6 or rule 8-A of

Order XXXIV of the First Schedule of the Code of Civil Procedure, 1908, 

where in a suit based on a loan secured by a first mortgage a decree for 

sale has been executed and the net proceeds of the sale of the 

mortgaged property are found insufficient to pay the amount due to the 

plaintiff or to the defendant, as the case maybe, no decree shall be 

passed for the balance due to such plaintiff or defendant, as the case 

may be, and if any decree for such balance has been passed before the 

commencement of this Act, it shall be deemed to have been satisfied.   

Decree on the 
basis of a first 

mortgage to 
be satisfied 
by the sale of 
mortgaged 

property. 

22. No decree to which this Act applies shall be executed by the

transfer of trees belonging to an agriculturist unless the land on which 

such trees stand is also transferred : 

Provided that nothing in this section shall be deemed to prohibit 

the execution of a decree by the sale of the interest of a grove-holder. 

Trees 

protected 
from sale. 

23. No decree to which this Act applies shall be executed by the

arrest and detention of the judgment-debtor unless the court is 

satisfied that such debtor has alienated or removed or concealed any of 

his property with the intention to defeat or delay the execution of such 

decree.  

Decree to be 
executed by 

arrest and 
detention of 
judgment 
debtor. 

CHAPTER–IV 

MISCELLANEOUS 

24. The provisions of the Code of Civil Procedure, 1908, save in

so far as they are inconsistent with the provisions of this Act, shall 

apply to all proceedings under this Act.  

Application of 
the Code of 
Civil 
Procedure, 

1908 

25. (1) Notwithstanding anything in the United Provinces Village

Panchayat Act, 1920, no suit to which this Act applies shall be 

instituted before a panchayat establish under the provisions of that Act 

and if at the commencement of this Act any such suit is pending before 

a panchayat so established, it shall forthwith be transferred to the 

court which, but for such panchayat, would have jurisdiction.  

Jurisdiction 
of panchayat 
barred. 



[The United Provinces Debt Redemption Act, 1940] 

14 

(2) The provision of section 8 shall apply to decrees passed by a 

panchayat so established as if for the words “civil court which passed 

the decree or to which the execution of the decree has been 

transferred”, in that section the words “court of the Tahsildar” were 

substituted.  

Power to 
make rules 

26. The [State Government]1 may make rules2 consistent with

this Act for carrying out the purposes of this Act. 

Repeal and 

amendments 
27. (1) The enactments mentioned in the Second Schedule are

hereby repealed to the extent mentioned in the fourth column thereof. 

(2) In section 33 of the United Provinces Agriculturists’ Relief 

Act, 1934 — 

 (a) in sub-section (2) for the words “follow the provisions 

of Chapter IV of this Act and the provisions of the Usurious 

Loans Act, 1918,” the words “allow only such interest as may 

be permissible under the law applicable to the agriculturist 

debtor” shall be substituted ; and  

(b) Sub-section (4) shall be omitted. 

THE FIRST SCHEDULE 

(See sub-section (20) of section 2) 

Agricultural laborers, bangle-makers, barbers, basket-makers, blacksmiths, 

boatmen, carders, carpenters, copper-smiths,  cowherds, dairymen, fishers, general 

laborers, goat herds, hunters, leather-workers, masons, midwives, potters, 

scavengers, stonecutters, tailors, tanners, washermen, watchmen, water-carrier, 

weavers or other servants of the village community ; or any similar class of person 

which the [State Government]1 may, by notification in the official Gazette, form time, 

include in this Schedule.   

—————————————————————————————————————————— 
1. Subs. by the A. O. 1950 for (Provincial Government).

2. For rules, see nos. no. 438/I—39, d. July 14, 1941, in Gaz. 1941. Pt. I:A, pp. 229—933, no. 2675/I—58—

41, d. Nov. 24, 1941, Pt. I–A, p 363 (ii) I—95—42-(1). D. March 7, 1942 Pt. I—A, p. 8, no. 1167/I—95—45,

d. Sept. 24, 1946, in Gaz., 1946.  Pt. I—A, p. 54 A.



[The United Provinces Debt Redemption Act, 1940] 

15 

THE SECOND SCHEDULE 

(See section 27) 

   Year  No.  Short title  Extent of repeal 

1934 

1937 

XXVII 

X 

The United Provinces 

Agriculturists Relief Act, 

1934. 

The United Provinces 

Temporary 

Postponement of 

Execution of Decrees 

Act, 1937. 

(a) Sections 3 to 8, 28 to 31, 37, 38, 40 

to 42 and Schedule I to Schedule 

V, except in their application to 

advances made before the first day 

of June, 1940 not being loans as 

defined in this Act. 

(b) Section 9 to 27, except in their 

application to mortgages made 

before the commencement of this 

Act.  

The whole.