State Act

THE RAJASTHAN JAGIRDARS DEBT REDUCTION ACT, 1956

3. Reduction of secured debt at the time of passing decree.- (1) Notwithstanding anything in any law, agreement or document, in any suit to which Act applies relating to a secured debt, the court shall, after the amount due has been ascertained, but before passing a decree, proceed as hereinafter stated. (2) (a) Where the mortgaged property consists exclusively of jagir lands and such lands have been *[resumed, abolished, acquired or ordered to vest in the State under the relevant Act], the court shall first ascertain whether the mortgagor had the right. Under the jagir law in force at the time the mortgage deed was executed, to mortgage the jagir land, or failing that. Whether specific permission for effecting the mortgage was obtained from the competent authority, and whether the mortgage was validly subsisting on the date of 2 [such resumption, abolition.Acquisition or vesting] of the jagir lands. (b) If the mortgage was legally and properly made and was validly sub–sisting on the aforesaid date. The court shall reduce the amount due in accordance with the formula given in schedule 1. (3)Where the mortgaged property consists partly of jagir lands as aforesaid and partly of property other than such lands, the court shall after taking action in accordance with the provisions of sub-clause (a) of sub-section (2) .proceed to distribute the amount due on the two properties separately in accordance with the principles contained in section 82 of the Transfer of property Act. 1882 (IV of 1882) as if they had been distinct right of ownership; and after the amount due has been so distributed, reduce the amount due on the Jagir lands in accordance with the formula given in Schedule 1.