The Chutia Nagpur Encumbered Estates Act, 1876

This Act may be called "The Chutia Nagpur Encumbered Estates Act, 1876."

Wheneverany holder of immoveable property, or (when such holder is a minor, or of unsound mind, or an idiot) hisguardian, committee or other legal curator, or the person who would be heir to such holder if he died intestate, or (when such person is a minor, or of unsound mind, or an idiot) his guardian, committee or other legalcurator, or when any such property belonging to such holder has been attached in execution of a decree of aCivil Court, the Deputy Commissioner within whose jurisdiction such property is situate, applies in writing to the Commissioner, stating that the holder of the said property is subject to, or thathis said property is charged with, debts or liabilities other than debts due, or liabilities incurred, toGovernment, and requesting that the provisions of this Act be applied to his case, the Commissioner may, with the previous consent of the Lieutenant-Governor of Bengal, by orderpublished in the Calcutta Gazette, appoint an officer (hereinafter called the Manager), and vest in him themanagement of the whole or any portion of the immoveable property of or to which the said holder is thenpossessed or entitled in his own right, or which he is entitled to redeem, or which may be acquired by ordevolve on him or his heir, during the continuance of such management.

On the such publication the following consequences shall ensue:-- Bar of suits.--First, all proceedings which may then be pending in any Civil Court in British India, inrespect to such debts or liabilities, shall be barred; and all processes, executions and attachments for or inrespect of such debts and liabilities shall become null and void; Freedom from arrest.--Secondly, so long as such management continues, the holder of the saidproperty and his heir shall not be liable to arrest for or in respect of the debts and liabilities to which thesaid holder was immediately before the said publication subject, or with which the property so vested asaforesaid or any part thereof was at the time of the said publication charged, other than debts due, orliabilities incurred, to Government, Moveable property not liable to attachment for prior debts.--nor shall their movable property beliable to attachment or sale, under process of any Civil Court in British India, for or in respect of such debtsand liabilities other than as aforesaid; and Cessation of power to alienate. --Thirdly, so long as such management continues, (a) the holder of the said immoveable property and his heir shall be incompetent to mortgage, charge,lease or alienate their immoveable property or any part thereof, or to grant valid receipts for the rents andprofits arising or accruing therefrom, Immoveable property freed from attachment.--(b) such property shall be exempt from attachmentor sale under such process as aforesaid except for or in respect of debts due, or liabilities incurred, toGovernment, and Cessation of power to contract.--(c) the holder of the same property and his heir shall be incapableof entering into any contract which may involve them, or either of them, in pecuniary liability.

The Manager shall, during his management of the saidimmoveable property, receive and recover all rents and profits due in respect thereof; and shall, uponreceiving such rents and profits, give receipts for the same. From the sums so received, he shall pay-- and pay therefrom the Government demand, First, the Government revenue, and all debts ofliabilities for the time being due or incurred to Government; rent due to superior landlord, Secondly, in the case of under-tenures, the rent (if any) due to thesuperior landlord, in respect of the said property: annual sum for maintenance of holder of property and his heir, Thirdly, such annual sums asappears to the Commissioner requisite for the maintenance of the holder of the property, his heir, and theirfamilies: costs of repairs and improvements, Fourthly the costs of such repairs and improvements of theproperty as appear necessary to the Manager and are approved by the Commissioner: cost of management and the debt and liabilities, and the residue shall be applied in discharge of thecosts of the management, and in settlement of such debts and liabilities of the holder of the property andhis heir, as may be established under the provision hereinafter contained.

On the publication of the order vesting in him themanagement on the said property, the manager shall publish a notice in English, Urdu and Hindi, callingupon all persons having claims against the holder of the said property to notify the same in writing to suchManager within three months from the date of the publication. Notice how published.--Such notice shall be published by being posted at the kachahris in the districtor districts in which the said property lies, and at such other places as the Manager thinks fit.