Land Improvement Loans Act, 1883

Download FeedBack
Department: Finance Department
Main Category: Acts
Specific Category Name: Loan
Year 1883
Promulgation Date: 12-10-1883

(Act No. XIX of 1883)



1.   Short title.

Local extent and Commencement.

2.   Act XXVI of 1871 and XX( of (876  repeated.
3. "Collector" defined.
4.   Purposes for which loans may be granted under this Act.
5.   Mode of dealing with applications for loans.
6.   Period for repayment of loans.
7.   Recovery of loans.
8.   Order granting loan conclusive on certain points.
9.   Liability of joint borrowers as among   themselves.
10. Power   to   make   rules.
11. Exemption of improvements from assessment to land-revenue.
12. Certain powers of Provincial Government to be exercisable by Board of Revenue or Financial Commissioner.










[1](Act No. XIXof 1883)

[12th October, 1883]



to consolidate and amend the law relating to loans of money
 by  the  Government for agricultural improvements.


            WHEREAS, it is expedient to consolidate and consolidate and amend the law relating to loans of money by the Government for agricultural im­provements ;

It is hereby enacted as follows :-



1.               (1)        This Act may be called the Land Improvement Loans Act, 1883.

Short title.


            (2)        It extends to [2][the whole of Pakistan]    but shall not come into   force   in   any [3][part thereof  ] until     such     date     as    the[4][Provincial Government]   [5][   *    * ] may by notification in the [6](Official Gazette),   appoint in this behalf.[7]


Local extent, 

2.    (1) The Land Improvement Act, 1871, and   Act XXI of 1876  (An Act to amend the Land Improvement Act, 1871), shall, except as regards the recovery of advances  made before this Act  comes into force and costs incurred by the Government in respect of such ad­vances,  be repealed.

Acts. XXVI of 1871 and XXI of 1876 repealed

(2) When in any Act, Regulation or Notification passed or issued before this Act comes into force, reference is made to either of those Acts, reference shall, so far as may be practicable, be read as apply­ing to this Act or the corresponding part of this Act.

3.    In this Act, ''Collector" means the Collector of land  revenue  of a district, or The Deputy Commissioner, or any officer empowered by the [8][Provincial Government ] by name or by virtue of his  office to discharge the functions of a Collector under this Act.




4.    (1) Subject to such rules as may be made under section 10, loans may be granted under this Act, by such officer as may, from time to time, be empowered in this behalf by the [9][Provincial Government] for the purpose of making any improvement, to any person having a right to make that improvement., or, with the consent of that person, to any other person

Purposes for which loans may be granted under this Act.

(2) "Improvement" means any work which adds to the letting value of land, and includes the following, namely:—

(a)  the construction of wells, tanks and other works for the storage, supply or distribution of water for the purposes of agriculture, or for the use of men and cattle employed in agriculture;

(b)   the preparation of land for irrigation;

(c)the drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purposes or waste­land which is cultivable;

(dthe reclamation, clearance, enclosure or permanent, improvement of land for agricultural purposes:

(e)   the renewal or reconstruction of any of the foregoing works, or alterations therein or additions thereto; and

(f)  such other works as the[10][Board of Revenue] [11][* * *] may, from time to time, by notification in the [12][Official Gazette], declare to be improvements for the purposes of this Act.

5.         (1) When an application for a loan is made under this Act, the 111 officer to whom the application is made may, if 'it is, in his opinion expedient that public notice be given of the application, publish a, notice, in such manner as the [13][Provincial Government] may, from time to time, direct, calling upon all persons objecting to the loan to appear before him at a time and place fixed therein and submit their objections

Mode of dealing with application for loans.

            (2) The Officer shall consider every objection submitted under sub-section (1), and make an order in writing either admitting or overruling it:

            Provided that, when the question raised by an objection is, in the opinion of the officer, one of such a nature that it cannot be satisfactorily decided except by a Civil Court, he shall postpone his pro­ceedings on the application until the question has been so decided.

6.         (1) Every loan granted under this Act shall be made repay­able by installments (in the form of an annuity or otherwise), within such period from the date of the actual advance of the loan, or, when the loan is advanced in installments, [14][ from the-date of the advance of the last installment actually paid ] as may, from time to time, be fixed by the rules made under this Act.

            (2) The period fixed as aforesaid shall not ordinarily exceed thirty-five years.

Period of repayment of loans.

            (3) The [15][Provincial Government], [16][* * *] in making [17][* * *] the rules fixing the period, shall, in considering whether the period should extend to thirty-five years, or whether it should extend bey­ond thirty-five years, have regard to the durability of the work for the purpose of which the loan is granted, and to the expediency of the cost of the work being paid by the generation of persons who "will immediately benefit by the work.

7.         (1) Subject   to such rules as may be made under   section 10, all loans granted under this Act all interest(if any) chargeable there­on, and costs (if any) incurred in making the same,  shall when  they become due, be recoverable by the Collector in all or any of the following modes, namely :-

(a)    from the borrower as if they were arrears of land re­venue due by him;

(b)   from his surety (if any}—is if they were arrears of land-revenue due by him:

(c)    out of the land for the benefit of which the loan has been granted—as if they were arrears of land-revenue due in respect of that land;

(d)   out of the property comprised in the collateral security (if any)- -according to the procedure for the realization of land-revenue by the sale of immovable property other than the land on which that revenue is due:

            Provided that no proceeding in respect of any land under clause (c) shall affect any interest in that land which existed before the date of the order granting the loan, oilier than the interest of the borrowers, and of mortgages of, or persons having charges on that interest, and, where the loan is granted under section-4 with the consent of another person, the interest of that person, and of mortgages of, or persons having charges on, that interest.

            (2)        When any sum due on account of any such loan, interest or costs is paid to the Collector by a surety or an owner of property comprised in ; any collateral security, or is recovered under sub-sec­tion (1) by the Collector from a surety or out of any such property the Collector shall, on the application of the surety or the owner of that property (as the case may be), recover that sum on his behalf from the borrower, or out of the land for the benefit of which the loan has been granted, inmanner provided by sub-section (1).

            (3)        It shall be in the discretion of a Collector acting under this
section to determine the order in which he will resort to the various
modes of recovery permitted by it.

8.    A written order under the hand of an officer empowered to make loans under this Act granting a loan to, or with the consent of, a person mentioned therein, for the purpose of carrying out a work described therein, for the benefit of land specified therein, shall, for the purposes of this Act, be conclusive evidence—

Order granting loan conclusive on certain points.

(a)    that   the   work described is an   improvement  within the meaning   of   this   Act,;

(b)   that the   person mentioned had at the date of the order a right to make such an improvement; and

(c)    that the improvement is one benefiting the land specified.

9.    When a loan is made under this   Act  to  the   members  of a village-community or to any other persons on such terms that of them are jointly and severally bound to the Government for the payment of the whole amount payable in respect thereof, and a statement showing the portion of that amount which as among them­selves each is bound to contribute is entered upon the order granting the loan and is signed by each of them and by the officer ^making the order, that statement shall be conclusive evidence of the portion of that amount which as among themselves each of those persons is bound to contribute.

Liability of joint borrowers as among themselves.


10. The [18][Provincial Government ] [19][ * * * ] may, from time to time, by notification in the [20][ Official Gazette ], make rules cons­istent with this Act to provide for the following matters, namely:-

Power to make rules.




(a)    the manner of making applications for loans;

(b)   the officers by whom loans may be granted;

(c)    the manner of conducting inquiries relative to applica­tions for   loans, and the powers   to be exercised by officers conducting those inquiries;

(d)   the nature of the security to be taken for the due appli­cation and repayment of the money, the rate of interest at which, and the conditions under which, loans may be granted, and the manner and time of granting loans;

(e)    the inspection of works for which loans have been granted;

(f)    the installments by which, and the mode in which, loans, the interest to be charged on them and the costs incurr­ed in the making thereof, shall be paid;

(g)   the manner of keeping and auditing the accounts of the expenditure of loans and of the payments made in respect of the same; and

(h)   all other matters pertaining to the working of the Act.

11. When land is improved with the aid of a loan granted under this Act, the increase in value derived from the improvement shall not be taken into account in revising the assessment of land-revenue on the land:

Exemption of improvements from assessment to land-revenue.

            Provided as follows :—

            (1)   where the Improvement consists of the reclamation of waste-land, or of the irrigation of 1 and assessed at irrigated rates, the increase may be so taken into account after the expiration of such period as may be fixed by rules to be framed by the [21][Provincial Government]

      [22][*            *          *];

            (2)  nothing in this section shall entitle any person to call in question any assessment of land revenue otherwise than as it might have been called in question if this Act had not been passed.

[23][12]. The Powers conferred on a [24][Provincial Government] by Section 4(1), 5 (1) and 10 may, in a province for which there is a Board of Revenue or a Financial Commissioner, be exercised in the like mariner and subject to the like conditions by such Board or Financial Commissioner, as the case may be: Provided that rules made by a Board of Revenue or Financial Commissioner shall be subject "to the control of the [25][Provincial Government.]

Certain Powers of Provincial Government to be exercisable by Board of Revenue or Financial Commissioner.







[1].      For the statement of Objects and Reasons, See Gazette of India, 1882, Pt. V. P. 954 : for; Report of the Select Committee, See ibid.,    1883, Supplement, p. 1296 ; for Proceedings in Council, see ibid ., 1882, Supplement, pp. 1494 and 1697 ; ibid 1883, Supplement, p, 2071.

Instruments executed by person taking! Loans, or by their sureties, as security for repayment  of such loans, are exempted from stamp-duty-See the Stamp Act, 1899 (II of 1899), sch-I, Art 40, exemption (1), and notification under s. 9. 
This Act has been applied to Phulera in the Excluded Area of Upper Tanawal to the extent the Act is applicable in the Khyber Pakhtunkhwa subject to certain modifications, See Khyber Pakhtunkhwa- (Upper Tanawal) (Excluded Area) Law Regulation, 1950; and also extended to the excluded Area of Upper Tanawal (Khyber Pakhtunkhwa) other than Phulera with effect from 1st June, 1951 , see Khyber PakhtunkhwaGazette, Extraordinary, dated 1st June, 1951. 
It has also been declared to be in force in Baluchistan by the British Baluchistan Laws Regulation
191 3 (II of 1913).                                                                                                                      

It has also been extended  to the leased Areas of Baluchistan, see the Leased Areas (Law) Order 1950 (G.G.O, 3 of 1950) ; and applied in the Federal  Areas of  Baluchistan See Gazette of  India 1937, Pt. I,P.   1499. 
The provision of this Act, has been extended to the District of Khairpur (with effectfrom the 15th March, 1961), See Gazette of West Pakistan 1961 Pt.   I, p. 145. 

[2]Subs, by the Central Laws (Statute Reform) Ordinance, 1960 (XXI of 1960), (with effect from the 14th October, 1955), for "all the Provinces and the Capital of this Federation ", which had been subs, by A.O..1949, for "the whole of British India". 

[3].Subs, by A.O., 1949 for "Part of British India".

[4]Subs, by A.O., 1937, for "Local Government". 

[5]The words, "with the previous sanction of the G.G. in C." rep. by the  LandImprovement and Agriculturists ' Loans (Amdt) Act, 1906 (VIII of 1906). 

[6].Subs byA.O.1937,for ''local official Gazette"

[7]As to the date when this Act. came into force in different provinces and tribal areas connected thereto, see different local rules and Orders.

[8]Subs, by A.O., 1937, for "Local Government". 

[9]Subs, by A.O., 1937, for "Local Government". 

[10]. Subs. by W.P. Act, XVI of 1957.

[11]. The words, “with the previous sanction of the G.G. in C “rep, by the land Improvement and Agriculture” Loans (Admnt.)Act, 1906 (VIII of 1906).

[12]. Subs. by A.O. 1937, for “Local Official Gazette”.

[13]Subs, by A.O., 1937, for "Local Government". 

[14].Subs, by s. 2 of the Land Improvement Loans (Amdt).Act, 1899 (XVIII of 1899), for “from the date of the actual advance of the last installment.

[15]Subs, by A.O., 1937, for "Local Government". 

[16]The words, "and G.G. in C".rep.  by the Land Improvement and   Agriculturist* ' I™™
(Admt.)Act, 1906 (VIII of 1906).


[17]. The words, “and sanctioning”, rep, ibid.

[18]Subs. by A.O. 1937, for "Local Government." 

[19].    The words," subject to the control of the G.G. in C.", rep by the Decentralization Act, 1914 (IV of 1914). The words 'subject to she control" had been subs, for the words "with the pre­vious sanction", by the Land Improvement and Agriculturists' Loans (Amdt) Act, J906 (VIII of 1906),

[20]. Subs, by A.O.937, for "local official Gazette".

[21]. Subs, by A.O, 1937 for "Local Government".

[22]. The words, "with the approval of the G.G. in C., rep. the Land • Improvement and Agri­culturists Loans (Amdt.) Act, 1906  (VIU of 1906).

[23]. S.12 was ins. by the Decentralization Act, 1914 (IV of 1914) s. 2  and Sch. Pt. I. The original s.  12 was rep. by the Registration Act, 1908 (XVI of  1908).

[24]. Subs, by A.O, 1937 for "Local Government".

[25]. Subs, by A.O, 1937 for "Local Government".