Punjab Legislative Assembly on 22 March 2016 passed The Punjab Settlement of Agricultural Indebtedness Bill, 2016. The bill specifies that the interest payable on debt shall be calculated at such rate as may be notified by the government.
Features of the Bill
• This would be in accordance with the interest rates charged by banks on yearly basis.
• The bill, aimed at providing fair and expeditious settlement of agriculturists debt-related disputes.
• It also specifies that the pledged property of the debtor who has repaid to the creditor double or more than double the principal amount or pays any amount which makes the total repayment equal to double the principal amount shall stand released and debt deemed to be discharged.
• Legislation also proposed that on and from the commencement of the Act, no Civil Court shall entertain any new suit filed for the recovery of any debt covered under the Act.
• Once the Act is enforced, any suit pending before a civil court, in respect of any such debt shall be transferred by that court to the Forum having jurisdiction in the matter.
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When: 22 March 2016
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