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Report No. 63

3.6. Misunderstanding as to Part B States caused by note in India Code.-

We may mention that some misunderstanding on the question whether the Interest Act, 1839, extends to the areas of former Part B States, is caused by the footnote to the text of the Act as printed in the India Code. That footnote states that the Act has been declared to be in force "in all States" by section 3 of the Laws Local- Extent Act, 1874, except as regards certain areas in Scheduled Districts. In fact, however, the Laws Local Extent Act, 1874 does not make any such declaration. On the other hand, section 3 of that Act (as printed in the India Code1), while declaring that the enactments mentioned in the Schedule to that Act-which includes the Interest Act also-extend to the specified areas, expressly excludes the areas comprised previously in Part B States.

1. India Code, Vol. 2C, Part 4, p. 27.

We may cite the section:

Extract of section 3, Law Local, Extent Act, 1874
(India Code, Vol. 2C, Part 4, page 27)

"3. The Acts mentioned in the first schedule hereto annexed are now in force1 [in the whole of India except2 (the territories which, immediately before the 1st November, 1956, were comprised in Part B States) and] the scheduled Districts.

[The Interest Act, 1839, is mentioned in the First Schedule to the Act.]

1. Subs. by the A.O. 1950 for "throughout all the Provinces of India, except".

2. Subs. by the Adaptation of Laws (No. 2) Order, 1956, for "Part B States".

Interest Act, 1839 Back

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