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N.K.Assumi (Advocate)     27 July 2010

Wanderful Loan Acts and Rules

The Nagaland Legislative Assembly in its wisdom has  passed the Nagaland Recovery of Loans act 2007 which has come into effect from 1st December 2007 and as per section 5 of  the Act the Governor of Nagaland has framed Rules namely the Nagaland Recovery of Loans Rules 2009. The said act is the replica of the Bengal Public Demand Recovery Act 1913: some of the highlights of the Rules of 2009 are as follows.

Recovery Officer means the Deputy Commissioner or the Sub Divisional Officer.

Public Demand means any arrear or money recoverable as arrear of  revenue or land revenue or of Government revenue or any arrears of money recoverable on public demand or any money payable to the Government, bank or financial institution.

Schemes means a scheme framed snd or approved for the purpose of these Rules as the State Government may by notification, prescribed for providing opportunities for employment or for assisting agricultural or industrial activities and purposes.

4.Requisition for recovery for recovery certificate in other cases:-

(m) the amount due to a bank or financial institution from any pesron in respect of any amount advanced or granted under any scheme shall, apart from any other mode of recovery, be recoverable as an arrear of land revenue under thiss act.


(o) every such requisition shall be signed and verified in the prescribed  manner, acompanied by a fee amounting to 5% to be paid in demand draft in favour of the Deputy Commissioner Recovery Account.

18. Power of arrest and detention

21.Detention and release from prison.

demand of an amount exceeding Rs.10,000/- for a period of 6 months.

in any other case for a period of 8 weeks.

24. Appeal: An appeal from any original order made under this Act shall lie before the Law Secretary Govt.of Nagaland within 30 days.

                           Thus the civil,court is completely stripped of its Jurisdictions including DRT and the Act has override the reserve Bank of India and those acts under the Banking Regulations, interest act, Insolvency act and the Court fees etc, with Law secretary having the  appelate Jurisdictions. indeed an innovative act.

Comments of the members on this innovative Acts and Rules will be appreciated.


 1 Replies

DAULAT DILBAUG (Problems related to money marriage     09 October 2011

However it is restricted to schemes and hence Govt has provided speedy recovery mechanism.

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