West Pakistan Relief of Indebtedness Ordinance, 1960









Short title and extent






Powers of the Court to limit interest re-coverable in certain cases.



Deposits in Court



Immunity from arrest



Exemption from the provisions of Order XXI, Rule 2 (3) of the Civil Procedure Code



Exemption of houses, etc., from attachment or sale



Exemption of milch animals, etc., from attachment or sale



Agreement for waiving exemption void



Powers of Court to order payment of amount due on mortgage by instalments



Powers of Court to direct payment of amount decreed by instalment.



Interest after the commencement of this Ordinance



Powers to make rules









West Pakistan Relief of Indebtedness Ordinance, 1960

(XV OF 1960)

[27th April, 1960]

An Ordinance to amend and consolidate the law relating to the relief of indebtedness in the Province of West Pakistan



Whereas it is expedient to amend and consolidate the law relating to the relief of indebtedness in the Province for West Pakistan.


Now, therefore, in pursuance of the Presidential Proclamation of the seventh day of October, 1958, and having received the previous instructions of the President, the Governor of West Pakistan .is pleased, in exercise of all powers enabling him in that behalf, to make and promulgate the following Ordinance.


1.         Short title and extent. (1) This Ordinance may be called the West Pakistan Relief of Indebtedness Ordinance, 1960.

(2) It extends to the whole of the Province of West Pakistan, except the Tribal Areas.


2.         Definitions. In this Ordinance, unless the context otherwise requires, the following expressions shall have the meanings hereby respectively assigned to them, that is to stay-

(a)        Court or Civil Court includes a Court of insolvency, a receiver appointed under the Provincial Insolvency Act, 1920, and an arbitrator appointed with the consent of the parties or by an order of a Court;

(b)        debt includes all liabilities of a debtor in cash or in kind, secured or unsecured, payable under a decree or order of a Civil Court or otherwise, whether mature or not, but shall not include debts incurred for the purposes of trade, arrears of wages, land-revenue or anything recoverable as arrears of land revenue, or tastes or rates payable to Government or any local authority, or any debt which is barred by the law of limitation or a debt due to a co-operative bank, co-operative society or any banking company registered under the Companies Act, 1913, or any bank which is a 'scheduled bank' as defined in the State Bank of Pakistan Act, 1956;

(c)        debtor means a person who owes a debt; and-

(i)         who both earns his livelihood mainly by agriculture and is either a land-owner or tenant of agricultural land; or

(ii)        who earns his livelihood as a village artisan paid in cash or kind for work connected with agriculture ; or

(iii)       whose total assets do hot exceed five thousand rupees:


Explanation: A debtor shall not lose his status as such-

(i)         through involuntary unemployment or on account of incapacity, temporary or permanent, by bodily infirmity, or, if he is or has been in the Armed Forces of Pakistan, only on account of his pay and allowances or pension exceeding his income from agricultural sources;

(ii)        by reason of the fact that he derives income by using his plough cattle for purposes of transport;

(iii)       only because he does not cultivate with his own hands;

(d)        interest means rate of interest and includes the return to be made over and above what was actually lent whether the same is charged or sought to be recovered specifically be way of interest or otherwise. 


3.         Powers of the Court to limit interest recoverable in certain cases. Notwithstanding anything contained in any agreement or any law for the time being in force, no Court shall pass or execute a decree or give effect to an award in respect of a debt for a larger sum than twice the amount of the sum found by the Court to have been actually advanced less any amount already received by the creditor.


4.         Deposit in Court. (1) Any person who owes money may at any time deposit in Court a sum of money if full or part payment to his creditor.

(2)        The Court, on receipt of such deposit, shall give notice thereof to the creditor and shall, no his application pay the sum to him.

(3) From the date of such deposit, interest shall cease to run on the sum so deposited.


5.         Immunity from arrest. No debtor shall be arrested or imprisoned in execution of a decree for money, whether passed before or after the commencement of this Ordinance.


6.         Exemption from the provisions of Order XXI, Rule 2(3) of the Civil Procedure Code. Nothing in Order XXI, Rule 2, sub-rule (3) of the Code of Civil Procedure, 1908, shall apply to an adjustment made by a debtor. 


7.         Exemption of houses, etc., from attachment or sale. Notwithstanding anything contained in the Code of Civil Procedure, 1908, the houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belonging to a debtor, shall not be liable to attachment or sale in execution of any decree, if such houses and other buildings are not proved by the decree-holder to have been let out on rent or lent to persons other than the debtor's father, mother, wife, son,, daughter, daughter-in-law, brother, sister or other dependent or left vacant for a period for a year or more:

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