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Legislative efforts of Govt. of M.P.
Legislative efforts of Government of Madhya Pradesh

towards recovery measures


One of the study groups appointed by the National Credit Council in 1968 to examine the need for adopting area / project approach in implementing schemes for extending credit to agriculture including credit for commercially viable projects in the rural electrification and minor irrigation had drawn attention towards the need for legislative and administrative aspects, as some of state enactments were somewhat outmoded in the light of credit needs of agriculture. An expert group under the chairmanship of Shri R.K.Talwar was constituted to go into the details of the existing provisions and make suitable recommendations aimed at enlarging the role of commercial banks in meeting the growing credit needs of agriculture. The Committee, among other things, had recommended enactments of legislation by State Government.

With a view to ensure speedy recovery of agricultural dues of banks and to facilitate prompt recovery of dues of commercial banks without having to resort to protracted and time consuming litigation in Civil Courts, this Expert Group (Talwar Committee Report 1971) had also recommended that State Governments should empower one of its official with authority to issue order having the force of a decree of a Civil Court for payment of any some due to a bank by attaching some of property charged / mortgaged in favour of the bank. For implementing this recommendation, the Expert Group recommended enactment of legislation by various State Governments and union Territories on the basis of ‘model bill’ titled “(State) Agricultural credit operations and Miscellaneous Provisions (Banks) Bill, 1970” evolved by them. Accordingly, the State of Madhya Pradesh had enacted Madhya Pradesh agricultural Credit operations and miscellaneous (Banks) Act 1970. To help the banks in recovering their overdues, Madhya Pradesh State Government had promulgated Madhya Pradesh Public Moneys (Recovery of Dues) Act, 1981.

A new legislation entitled “Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam 1987” was enacted by the State of Madhya Pradesh to facilitate recoveries of bank overdues under RRCs by revenue authorities. This new Act came in force with effect from 2nd January, 1988. This Act provided for recovering the banks overdues as revenue recovery through the State Government revenue machinery. It repealed and replaced the Madhya Pradesh Public Moneys (Recovery of dues) Act 1981.