Local Authorities Loans Act,1914
Act No : 9
Section : SHORT TITLE AND EXTENT
LOCAL AUTHORITIES LOANS ACT, 1914
9 of 1914
28th February, 1914
STATEMENT OF OBJECTS AND REASONS "Certain practical difficulties have arisen in the working of the Local Authorities Loans Act, 1879(11 of 1879), and it is proposed to amend that Act so as-
(1) to remove all doubts as to the competency of Port Officers to borrow under the Act.
(2) to make it clear that in the case of loans raised under section 7of the Act (i.e. loans raised in the open market), the Government of India can
(a) by rule delegate the power of sanction to Local Governments;
(b) direct that the unexpended balances of such loans shall be applied in the reduction of the debt of the local authority concerned, or utilised in carrying out works which the local authority is legally authorised to carry out;
(c) by rule delegate to Local Governments, subject to such conditions as to the Governor-General in Council may by rule impose the power referred to in the preceding clause. At the same time it is considered desirable to take this opportunity of consolidating the existing Acts which relate to loans raised by Local Authorities. Those Acts are as follows:-
(1) The Local Authorities Loans Act of 1879 (11 of 1879) as amended by Act 15 of 1885, Act I of 1905 and Act 5 of 1907.
This is the general Act under which local authorities derive their ordinary borrowing powers;
(2) Local Authorities (Emergency) Loans Act, 1897 (12 of 1897), as amended by Act 11 of 1912. This Act extended the scope of the general Act by enabling local authorities to borrow money for certain temporary emergencies, such as famine relief and the prevention of epidemic diseases.
(3) The Local Authorities Loans Act, 1904 (3 of 1904), as amended by Act 8 of 1908, which empowered certain of the more important local authorities in India (specified in the Schedule to the Act), to raise money by the issue of short-term bills repayable within twelve months. Opportunity was taken to embody in this Act a provision (section 3) enabling local authorities, under certain restrictions, to raise money in order to repay money previously borrowed. These three Acts, together with their various amending Acts, have been consolidated in the draft
Bill, and, if the latter becomes law, will disappear from the statute -book. The amendments mentioned in paragraph one above have also been provided for in the following manner: -
Amendment (1).- This is covered by substitution of the words 'any person' for the words 'any body corporate, Municipal Committee, or other persons' in the present definition of local authority as given in sec. 3 of Act 11 of 1870-See clause 2 of the Bill (now section 2).
Amendment 2(a).- This has been provided for by clause 4(l)(vii) of the Bill. Amendments 2(b) and (c).- These have been provided for by clause 4(l)
(xv) of the Bill. In addition to these amendments, opportunity has been taken to reconcile certain discrepancies and to effect certain simplifications in the existing law which are due to the fact that the Acts now in force have been passed at different times to deal with special circumstances. Apart from this the Bill makes no change of principle in existing law, and, in particular, does not affect the borrowing powers conferred on any local authority by any special enactment."- Gazette of India, 1914, Part V, p. 5.
An Act to consolidate and amend the law relating to the grant of loans to Local Authorities.
Preamble.- Whereas it is expedient to consolidate and amend the law relating to the borrowing powers of local authorities; It is hereby enacted as follows :-
This Act has been partially extended to Berar by Berar Laws Act, 1941 (4 of 1941). It has been extended to the new Provinces and Merged States by the Merged States (Laws) Act, 1949 (59 of 1949), section 3(1-1-1950) and to the States of Manipur,Tripura and Vindhya Pradesh by the Union Territories (Laws) Act, 1950 (30 of 1950),section 3(16-4-1950). Manipur and Tripura are States now-See Act 81 of 1971,sections 3 and 4(30-12-
1971). Vindhya Pradesh has megerd with M. P. State-See Act 37 of 1956,section 9(1)(e). It has also been extended to States merged in the State of- Bombay: see Bom. Act 4 of 1950,section 3(30-3-1950); Madhya Pradesh: see M. P. Act 12 of 1950,section 3(3-4-1950); Punjab: see Punj. Acts 41 of 1950,section 3(15-4-1950); 41 of 1960 (23-12-1960). Tamil Nadu: see T. N. Act 35 of 1949,section 3(1-1-1950).
The Act now extends to the Union Territory of Pondicherry-See Act 28 of 1968,section 3(1). It has been repealed in Kerala-See Ker. Act 30 of 1963,section 10. It was extended to the Pepsu area of Punjab State by Punj. Act 41 of 1960.
SECTION 01: SHORT TITLE AND EXTENT
(1) This Act may be called the Local Authorities Loans Act, 1914.
2[(2) It extends to the whole of India except 3[the territories which, immediately before the 1st November, 1956, were comprised in Part B States.]]
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