Punjab Gram Panchayat Grant of Loans (For Nightsoil Compositing) Rules, 1960

Published vide Punjab Government Notification No. 8884-EPI- 59/110 dated 5.2.1960.

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These rules may be called the Punjab Gram Panchayats Grant of Loans for Nightsoil (Composting) Rules, 1960.
Only the panchayats which have a population above 2,000 and have some conservancy arrangements are entitled to receive loans under these rules.
Loan will be advanced to the Panchayats for the purchase of land, carts, wheel barrows, construction of latrines and connected implements, etc.
Loan advanced will be spent exclusively for the purpose of preparation of compost from night soil and village waste material.
A maximum of Rs. 200 (Rupees two thousand) will be given as loan to a Panchayat.
Loan will be given at interest of 5½% per annum, or as fixed by the Government from time to time.
No payment will be due for one year from the date of issue of the loan along with interest which will be repayable in ten equated annual instalments after the period of one year of grace.
In case the instalments are not paid on the dates, penal interest will be charged at the rate of 6¼ per annum.
The land, machinery, latrines and implements purchased, constructed shall not be transferred or disposed of till the total amount is repaid.
Compost manure will be prepared and disposed off in the manner prescribed by the Agricultural Department.
In case the Panchayat fails to observe any of the above rules also fails to repay any instalment, the Director of Agriculture, Punjab may realise that instalment, for the whole amount of the loan, together with interest due, by directing the person having custody of the Panchayat Fund to make such payment and such person shall be bound to obey such order. In case of default of payment by the person, the loan together with interest thereon shall be recoverable in lumpsum as laid down under Section 5 of the Local Authorities Loans Act, 1914.

Agreement

This agreement is made this............. day of............ between the Gram Panchayat ............., a body corporate under the provisions of the Gram Panchayat Act, 1952, (hereinafter called borrower) of the one part and the Governor of Punjab (hereinafter called the Government) of the other part.

Whereas the borrower has applied for a loan Rs. ............. (hereinafter called the said loan for the purpose............. and whereas the Government) have decided to grant the said loan on terms and conditions hereinafter contained.

Now, it is hereby mutually agreed between the parties as follows :-

(1) That the Government shall advance the said loan of Rs. ............. to the borrower.

(2) That the said loan shall carry simple interest at the rate of 5 per cent per annum or as may be fixed by the Government, from time to time on such loans generally.

(3) That the said loan along with the interest shall be repayable in 10 annual equated instalments starting one year after the date of the advancement of the loan.

(4) If the instalments are not paid on due dates, the interest on these instalments shall be charged at the enhanced rate of 6¼ per cent per annum.

(5) The said loan shall be exclusively used by the borrower for the purpose of the loan and for on other purpose.

(6) The loan or rubbish, carts or wheel-barrows or other implement(s) purchased with the help of the said loan shall not be transferred or disposed of in any way by the borrower till the said loan and its interest is fully repaid.

(7) That the borrowers shall furnish an attested copy of resolution regarding that the Panchayat under takes to return the loan and interest in the prescribed period and manner.

(8) That the composite manure shall be prepared and disposed of in the manner suggested without prejudice to other rights by the local officers of the Agriculture Department.

(9) That in case, the borrower fails to conform to any or all of the foregoing clauses, the Government shall without prejudice to other rights have the option to recover the said loan with interest in lump-sum as laid down under Section 5 of the Local Authorities Loans Act, 1914.

(Sd.) Sarpanch

(Sd.) Panch