Section 12 of The Chutia Nagpur Encumbered Estates Act, 1876
When all such debts and liabilities have been discharged, or if, within six months after the publication of the order mentioned in section two, the Commissioner thinks that the provisions of this Act should not continue to apply to the case of the holder of the said property or his heir, such holder or his heir shall be restored to the possession and enjoyment of the property, or of such part thereof as has not been sold by the Manager under the power contained in section eighteen, but subject to the leases and mortgages (if any) granted and made by the Manager under the powers hereinafter contained. Restoration to be notified. Revival of barred proceedings and debts. Reinstatement of mortgagees.--Where the holder of the property or his heir is so restored under the circumstances mentioned in the second clause of this section,such restoration shall be notified in the Calcutta Gazette, and thereupon the proceedings, processes, executions, any attachments mentioned in section three (so far as they relate to debts and liabilities which the Manager has not paid off or compromised), and the debts and liabilities barred by section seven, shall be revived; and any mortgagee or conditional vendee dispossessed under section sixteen shall be reinstated, unless his claim under the mortgage or conditional sale has been satisfied; Period of limitation as to revived proceedings and debts.--and in calculating the periods of limitation applicable to such revived proceedings, and to suits to recover and enforce such revived debts and liabilities, the time intervening between such restoration and the publication of the order mentioned in section two, shall be excluded.
Summary
- The estate holder or heir gets their property back once all debts and liabilities have been fully paid off.
- The property can also be restored if the Commissioner decides, within six months of the start of management, that the Act should no longer apply.
- When restored, the owner gets back the property except for any parts the Manager legally sold to pay debts.
- Even after restoration, the owner is still bound by any leases or mortgages the Manager created while he was in charge.
- If restored because the Commissioner stopped the Act's application early, a notice must be published in the Calcutta Gazette.
- In this early restoration case, old lawsuits and debts that were "barred" or paused come back to life (are revived).
- The time the estate was under management is not counted when calculating the legal time limits (limitation periods) for these revived debts or lawsuits.
Practical examples
FAQ
1. When does an owner get their property back?
Either when all debts are paid off, or if the Commissioner decides within six months that the Act should not apply to that case.
2. What happens to debts that were "barred" if the Act stops being applied within six months?
Those barred debts are revived, meaning they become legally active again, and creditors can pursue them.
3. How is the "time limit" for revived lawsuits calculated?
You exclude the entire time between the publication of the management order and the restoration of the property.
Test yourself
Q1.Under Section 12 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the time limit for the Commissioner to decide the Act should not apply, resulting in the early restoration of the property?
Q2.According to Section 12 of The Chutia Nagpur Encumbered Estates Act, 1876, if property is restored, it remains subject to which of the following?
Q3.Under Section 12 of The Chutia Nagpur Encumbered Estates Act, 1876, what happens to debts barred by Section 7 if the property is restored because the Commissioner decides the Act shouldn't apply?
Q4.How does Section 12 of The Chutia Nagpur Encumbered Estates Act, 1876, affect the calculation of the "period of limitation" for revived proceedings?