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THE KHYBER PAKHTUNKHWA PROVINCE INDUSTRIAL
LOANS ACT, 1946.
(ACT XIV OF 1946).
CONTENTS.
Preamble.
SECTIONS.
1.
Short title, extent and
commencement.
2.
Definitions.
3.
Power to grant loans.
4.
Application for loan.
5.
Security for repayment.
6.
Loan how repayable.
7.
Notice to pay.
8.
Effect of declaration.
9.
Order and execution.
10.
Power to inspect.
11.
Penalty for default in applying the
loan.
12.
Power to make rules.
THE
[KHYBER
PAKHTUNKHWA]
INDUSTRIAL LOANS ACT, 1946.
ACT XIV OF 1946.
An
Act to improve the law relating to loans by the Government for
industrial
purposes.
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WHEREAS it is expedient to improve
the method of advancing loans by the Government for industrial purposes and
of recovering the same from the borrowers:
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Preamble.
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It is hereby enacted as follows:-
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1. (i)
This Act may be called the [Khyber
Pakhtunkhwa] Industrial Loans Act, 1946.
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Short title, extent
and commencement.
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(ii) It extends to the whole of the [Province
of the Khyber Pakhtunkhwa].
(iii) It shall come into force on
such date as the Provincial Government may, by notification in the Official
Gazette, appoint in this behalf.
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2. In
this Act –
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Definitions.
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(i)
“Industrial” means relating to and
connected with the manufacture of articles by hand, by machinery or by chemical
processes.
(ii)
“Company” means a Company, as
defined in the […….]
Companies Act, 1913.
(iii) “Prescribed”
means prescribed under the rules made under this Act.
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3. Subject
to such rules as may be made under Section 12, loans may be granted under
this Act for industrial purposes by such officers as may from time to time be
empowered in this behalf by the Provincial Government.
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Power to grant loans.
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4. Application
for a loan may be made by an individual, a firm or a company and shall be
made on the prescribed form.
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Application for loan.
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5. (i)
When an application for a loan has been accepted, the applicant shall execute
a deed in the prescribed form undertaking to apply the money lent to the
purpose or purposes for which and generally to fulfil the conditions on which
the loan was granted and rendering himself and his property liable for the
payment of any penalty imposed under Section II, and for the repayment of the
loan, together with all interest due thereon, if any, and Costs, if any,
incurred in making or recovering the loans.
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Security for
repayment.
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(ii) When the application has been
made by a firm or company the deed shall be executed by a representative
thereof, and the deed shall thereupon be deemed binding on the said firm or
company and the property of the said firm or company shall be liable in the
same manner, as if the loan had been granted to an individual.
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6. The
loan together with all interest due thereon, if any, shall be repayable
either in a lump sum or by instalments (in the form of an annuity or
otherwise) as the officer granting the loan may direct.
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Loan how repayable.
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7. (i)
When any loan or instalment or interest thereon falls due and is not paid on
or before the due date or when any penalty has been imposed under Section II,
or when a loan has been declared to be immediately repayable under the said
section the officer empowered by the Provincial Government in this behalf may
cause to be served on the debtor a notice in the prescribed manner calling
upon him to pay the sums due within such time as may be fixed therein.
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Notice to pay.
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(ii) Such notice shall contain
an intimation that in case of default the said officer will issue a declaration
in the prescribed form showing the amount of the debt due and the property
liable to satisfy the same.
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8. (i)
If within the time so fixed the sums due are not paid, the officer empowered
under Section 7, may issue the declaration as described in sub-section (ii)
of the same section. Such declaration shall be published in the official
Gazette.
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Effect of declaration.
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(ii) Such declaration shall be
conclusive evidence of its contents and shall not be called into question in
any court:
Provided that any person,
other than the debtor, who claims to have any interest in the property declared
liable to satisfy the debt may, within thirty days of the publication of such
declaration in the official Gazette, make an objection to the officer issuing
the declaration. Such officer shall after taking such evidence as may be
necessary [and
after giving the objector an opportunity of being heard] accept or reject such
objection and modify or confirm his declaration accordingly:
Provided further that within
sixty days of passing of any order under this sub-section the person making the
objection may appeal to the Provincial Government against such order, and the
decision thereon of the Provincial Government shall be final.
(ii) Such declaration may be
presented by the said officer or by such person as he may, either generally or
specially, appoint in this behalf in a competent civil court in the same manner
as a decree of which execution is sought.
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9. When
a declaration has been received by a civil court under Section 8, the court
shall pass an order directing the debtor to pay the amount shown therein as
due, and such order may be executed in the same manner as if it had been a
money decree passed by a court in the exercise of its ordinary civil
jurisdiction and the property mentioned in such declaration had been attached
thereunder.
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Order and execution.
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10. Subject
to the rules made under Section 12 the officer empowered by the Provincial
Government in this behalf may from time to time inspect the premises, books,
machinery, stocks, stores and all other belongings and things connected with
the industrial undertaking or undertakings in respect of which a loan has
been granted under this Act in order to satisfy himself that such loan is being
applied to the purpose or purposes for which it was granted, or that the
conditions on which it was granted are being duly fulfilled and shall have
such powers of entry as may be necessary to make such inspection.
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Power to inspect.
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11. If
such officer, is, after inspection, not satisfied that the money lent is
being applied to the purpose or purposes for which the loan was granted, or
that the conditions on which the loan was granted are being duly fulfilled,
he may pass an order directing that the borrower shall pay, by way of
penalty, a sum not exceeding Rs. 100 and may declare notwithstanding anything
contained in the deed executed under Section 5 that the loan is immediately
repayable:
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Penalty for default in
applying the loan.
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Provided that the borrower may
within six days of the receipt of such order appeal against it to the
Provincial Government, and the decision thereon of the Provincial Government
shall be final:
[Provided
further that the Provincial Government shall not pass any order without giving
the borrower an aportunity of being heard].
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12. The
Provincial Government may, after previous publication by notification in the
official Gazette, make rules consistent with this Act to provide for the
following matters, namely:-
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Power to make rules.
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(i)
the manner of making application
for loans;
(ii)
the officer by whom loans may be
granted;
(iii)
the form of deed to be executed
under Section 5;
(iv)
the nature and amount (not
exceeding one and-a-half times the amount of the loan) of the security to be
taken for the due application and repayment of the money lent together with all
interest due thereon, if any, the rate of interest at which and the conditions
under which loans may be granted:
Provided that where the security
consists wholly or in part of the premises, machinery, stock, stores or other
property, present or future, movable or immovable, of the industrial
undertaking concerned then the hole of such property, present and future,
movable and immovable, may be made liable for the recovery of the loan and all
interest due thereon, if any;
(v)
the manner in and the place at
which notices under sub-section (1) of Section 7 or orders under Section 11 may
be served on any debtor;
(vi)
the form of the declaration to be
used under Section 8;
(vii)
the inspection of the premises,
books, machinery, stock, stores and all other belongings and things connected
with the industrial undertakings in respect of which loans have been granted;
and
(viii)
all other matters pertaining to the
working of this Act.
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