Section 15 of The Rehabilitation Finance Administration Act, 1948
If the amount of loan or any instalment thereof or interest thereon which is due, in accordance with the terms of the contract or under the provisions of section 14, has not been repaid, the Administration may,—
- (a)without prejudice to any other remedy provided by law, recover such loan, instalment or interest as arrears of land revenue, or
- (b)take charge of the business or industry of the borrower on such terms and conditions as it may deem fit.
Summary
- If a borrower fails to pay an installment, interest, or the full loan when it is due, the Administration has special ways to get the money back.
- One way is to collect the owed money as if it were an unpaid land tax (arrears of land revenue), which is a very fast and strict legal collection method.
- The other way is for the Administration to simply take over and run the borrower's business or industry directly.
- The Administration can take these actions without losing the right to use any other normal legal remedies available to them.
Practical examples
FAQ
1. What happens if I miss my loan payment?
The Administration can collect the debt as an arrear of land revenue, or they can take direct charge of your business.
2. What does "arrears of land revenue" mean?
It is a legal term meaning the government can collect the debt using fast, strict methods usually reserved for people who do not pay their property taxes, often bypassing long court battles.
3. Can they take over my business completely?
Yes, the rules allow them to take charge of your business or industry on terms and conditions they think are fit to recover the unpaid money.
Test yourself
Q1.Under Section 15 of The Rehabilitation Finance Administration Act, 1948, if a borrower fails to repay a due loan, what is one specific method the Administration can use to recover the money?
Q2.Under Section 15 of The Rehabilitation Finance Administration Act, 1948, what can the Administration do with the borrower's business if a loan is not repaid?
Q3.Section 15 of The Rehabilitation Finance Administration Act, 1948, cross-references Section 14. How do these sections work together?
Q4.Under Section 15 of The Rehabilitation Finance Administration Act, 1948, if the Administration chooses to recover the loan as arrears of land revenue, do they lose the right to sue the borrower in a normal court?
Q5.Under Section 15 of The Rehabilitation Finance Administration Act, 1948, what specific unpaid amounts trigger the Administration's recovery powers?