Updated: Sunday November 03, 2019/AlAhad Rabi' Awwal 06, 1441/Ravivara Karthika 12, 1941, at 03:04:49 PM
The Loans for Agricultural, Commercial
and Industrial Purposes’ Act, 1973
(Act
No. XLII of 1973)
[27th June,
1973]
An Act to provide for credit facilities for persons engaged
in agriculture 1[, commerce and industry].
Whereas it is expedient to
provide for credit facilities for persons engaged in agriculture 2[,
commerce and industry];
It is hereby enacted as
follows:-
1. Short title, extent and
commencement.- (1) This Act may be called the Loans for Agricultural3[,
Commercial and Industrial] Purposes Act, 1973.
(2) It extends to the whole
of
(3) It shall come into
force at once.
2. Act to override other
laws.- The provisions of this Act shall have effect notwithstanding anything
contained in any other law for the time being in force 4[and nothing
contained in any law relating to the distribution or devolution of agricultural
land, or to relief to agriculturalists, shall apply to a loan or advance made
under this Act on the security of such land”.
3. Definitions.- In this
Act, unless there is anything repugnant in the subject or context,-
5[(a) “bank” means a
banking company as defined in the Banking Tribunals Ordiancne, 1984 (LVIII of
1984];
[1][(aa) “designated agency” means a department or authority
as the Minister-in-charge of the Federal Government or Provincial Government as
the case may be may, by notification in the official Gazette, designate to
prepare, issue and authenticate e-pass book and cause to give effect to entries
in revenue record;]
(b)
“land” means land used for agricultural purposes or for purposes subservient to
agriculture;
(c)
“land-owner” has the same meaning as in the West Pakistan Land Revenue Act,
1967, but does not include a lessee or a mortgagee;
(d)
“loans or advances” means loans or advances for agricultural [, commercial and
industrial] purposes 6[ and includes ‘finance’ as define the Banking
Tribunals Ordinance, 1984 (LVIII of 1984)];
[2][(da) “pass book” means a title-document prepared in the
prescribed manner setting out particulars of land owned by land owner and shall
include e-pass book prepared or issued by a designated agency;]
loans
or advances for agricultural [, commercial and industrial] purposes 6[
and includes ‘finance’ as define the Banking Tribunals Ordinance, 1984 (LVIII
of 1984)];]
(e)
“prescribed” means prescribed by rules made under this Act; and
(f)
“Revenue Officer” has the same meaning as in the West Pakistan Land Revenue
Act, 1967, and includes a Naib Tehsildar and Head Munshi.
1 Added by the
Finance Act, 1986 (I of 1986).
2 Added ibid.
3 Added ibid.
4 Added ibid.
5 Substituted ibid.
6 Added by the Loans
for Agricultural Purposes (Amendment) Act, 1985 (XIX of 1985).
4.
Presentation of pass book.- (1) A land owner applying to any bank for the grant
of a loan or advance may, for the purpose of enabling the bank to take action
in accordance with sub-section (4), produce before the bank a pass book
prepared in the prescribed form and manner setting out particulars of the
land owned by him.[3]
(2) The entries in the pass
book shall be authenticated by the Revenue Officer and shall be prima facie
evidence of the title of the holder of the pass book to the parcels of land
entered in the pass book, free of any prior encumbrance, unless otherwise
specified therein.
(3) The pass book shall be
deemed to be a title deed and accepted as such by the bank for granting a loan
or advance to a land-owner on the security of such land entered therein as he
may indicate.
(4) If the bank grants a
loan or advance to the land-owner on the production of the pass book, the bank
shall endorse the pass book against the entry relating to the land on the
security of which the loan or advance is granted by it.
(5) The endorsement made in
the pass book under subsection (4) shall create a charge in favour of the bank
on the land against the entry relating to which the endorsement has been made
and the land-owner shall be debarred from alienating the land until the
outstanding amount of the loan or advance granted by the bank has been repaid.
7[(5-A) A charge on any land created under subsection (5)
shall be entered in the relevant revenue records against the entry relating to
such land].
(6) Any alienation of land
in contravention of subsection (5) shall be void.
(7) If the land-owner fails
to repay the amount of the loan or advance in accordance with the terms of his
agreement with the bank, the bank may, without prejudice to any other legal
remedy available to it, apply to the Collector for the recovery of the amount
in default as an arrear of land revenue and thereupon all the provisions of the
Revenue Recovery Act, 1890, shall apply to the recovery of the amount in
default as they apply to the recovery of an arrear of land revenue.
5. Power to make rules.-
(1) The Federal Government or, if the Federal Government so directs, the
Provincial Government may, by notification in the official Gazette, make rrules
for carrying out the purposes of this Act.
(2) In particular and
without prejudice to the generality of the foregoing power, such rules may
specify the ratio to be maintained by the scheduled banks between
7 Added by the Finance Act, 1986 (I of 1986).
loans
and advances granted to land-owners having land not exceeding a subsistence
holding, those having land exceeding such holding but not exceeding an economic
holding and those having land exceeding an economic holding.
Explanation.- In this
sub-section, “subsistence holding” and “economic holding” have the same meaning
as the Land Reforms Regulation, 1972.
(3) The ratio specified in
the rules shall not be varied-
(i)
to the disadvantage of land-owners having land not exceeding a subsistence
holding and to the advantage of land-owners having land exceeding a subsistence
holding; or
(ii) to the disadvantage of land-owners having land less
than an economic holding and to the advantage of land-owners having land
exceeding an economic holding.
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[1] Inserted by section 2(a) of the Loans for Agricultural, Commercial and Industrial Purposes (Amendment) Act, 2019.
[2] Inserted by section 2(b) of the Loans for Agricultural, Commercial and Industrial Purposes (Amendment) Act, 2019.
[3] Omitted by section 3 of the Loans for Agricultural, Commercial and Industrial Purposes (Amendment) Act, 2019.