Section 7 of The Chutia Nagpur Encumbered Estates Act, 1876
Every debt or liability other than debts due, or liabilities incurred, to Government or (in the case of under-tenures), the rent due to the superior landlord, to which the holder of the property is subject, or with which the property is charged, and which is not duly notified to the Manager within the time and in manner hereinbefore mentioned, shall be barred: Provision for admission of claim within further period of nine months.--Provided that, when proof is made to the Manager that the claimant was unable to comply with the provisions of sections five and six, the Manager may admit his claim within the further period of nine months from the expiration of the said period of three months.
Summary
- This provision says that any debt or liability against the property holder will be barred, meaning it can no longer be legally collected, if it is not reported to the Manager on time.
- Creditors must notify the Manager of their claims within the three month period and in the specific way described in earlier sections of the Act.
- There are two main exceptions that are never barred even if not reported: debts owed to the Government and rent owed to a superior landlord.
- If a creditor can prove they were physically or legally unable to report their claim within the first three months, the Manager has the power to accept the claim later.
- This late admission is allowed for a further period of up to nine months after the first three month deadline has passed.
Practical examples
FAQ
1. What does it mean for a debt to be barred?
It means the creditor loses their legal right to demand payment or sue for that specific debt under the rules of this Act.
2. How much extra time can the Manager give a creditor who missed the deadline?
The Manager can admit a claim within a further period of nine months after the initial three month deadline has ended, provided there is proof the creditor could not comply earlier.
3. Is rent treated differently than other debts?
Yes, in the case of under tenures, rent due to a superior landlord is not barred by this section even if it was not officially notified.
Test yourself
Q1.Under Section 7 of The Chutia Nagpur Encumbered Estates Act, 1876, which of the following debts is specifically exempt from being barred if not notified to the Manager?
Q2.Under Section 7 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the maximum "further period" allowed for a Manager to admit a claim if the creditor proves they could not comply with the initial deadline?
Q3.According to Section 7 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the consequence for a private creditor who fails to notify the Manager of a debt within the required time and manner?
Q4.If a claim is submitted under the extension period of Section 7 of The Chutia Nagpur Encumbered Estates Act, 1876, what must the claimant provide to the Manager?