TAIR Act 3Chapter II · Relief from Indebtedness

Section 3 · Discharge of and consequences thereof

- Notwithstanding anything contained in any other law for the time being in force or any contract or other instrument having force by virtue of any such law, and save as otherwise expressly provided in this Act, the consequences as hereinafter set forth shall, with effect from the date of commencement of this Act, ensue, namely:

(a)

every debt advanced before the commencement of this Act including the amount of interest, if any, payable by a debtor to a creditor, shall be deemed to be wholly discharged;

(b)

no such debt due from the debtor shall be recoverable from him or from any movable or immovable property belonging to him, nor shall any such property be liable to be attached and sold or proceeded against in any manner in the execution of any decree or order relating to such debt against him;

(c)

no Civil Court shall entertain any suit, appeal, or proceeding against a debtor for the recovery of any amount of such debt including interest, if any:

Provided that where a suit, appeal or proceeding is instituted jointly against a debtor and any other person, nothing in this clause shall apply to the maintainability of a suit or proceeding in so far as it relates to such other person;

(d)

all suits and proceedings (including appeals, revisions attachment or execution proceedings) pending on the date of commencement of this Act for recovery of any such debt against a debtor shall abate;

Provided that nothing in this clause shall apply to a sale which has been confirmed before the commencement of this Act;

(e)

every debtor undergoing detention in a civil prison in execution of any decree for money passed against him by a civil court in respect of any such debt shall be released;

(f)

every movable property pledged by a debtor shall, on the commencement of this Act, stand released in favour of such debtor, and the creditor shall be bound to return the same to the debtor forthwith;

(g)

every mortgage executed by such debtor in favour of the creditor shall stand redeemed and the mortgaged property shall be released by the creditor in favour of such debtor.

Explanation I - Nothing in this section shall be construed to entitle any debtor to a refund of any part of a debt already repaid or recovered from him before the commencement of this Act.Explanation II - For the purposes of this Act 'mortgage' includes a transfer under an agreement express or implied for re-transfer within a specified period on repayment of the consideration money.

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