The ASSAM CO-OPERATIVE LAND MORTGAGE BANK ACT, 1960

ASSAM ACT No,l OF 1961 
THE A5SA~~ CO-OPER ATIVE LAND MORTGAGE BANK 
ACT, 1960 
J ~eceived the <1.ssent of the President on the 29th December 1960 
ublished in the Assam Gazette, Extraordinary, 'dated the 5th January 1961 
CONTENTS 
1. Short tide, extent and cumm encement . 
2. Definitions. 
3, Appointment ofTrustee and his powers and fur.ctions, 
4, Trustee to be Corporation sole. 
5. Istiue of debentures by the Board , 
6. Charge of debe.f'lture holders on certain !JrOperties. 
7. Guarantee by Sta te Government of principal of, and intere st oe 
debenture s. 
8. Distraint-when to be made. 
9. Distrnint-how to be effected. 
10, Sale of property distrained . 
11. Po.ver of sale when to be exercised. 
l:.!. Application for sale and manner or sale . 
13. Application to set aside sale on d ::p osit and confirmation of sale 
iri default or on di!missal of s•Jch application. 
14. Distribution of proceeds of sale. 
15. Certificate to purchaser. 
16. Delivery of prop erty to purchaser. 
17. Appointment of Receiver and his pow ers. 
18. Title of purchaser not to be que3ti on::d on the ground of irre~ 
gularity, etc. 
19. Appointment of Sales Officers. 
20. Right of Mortgage Bank or of th e Central · Mortgage Bank to 
purchase the mortgag ed properly at sale. 
21. Mortgages executed in favour of Mortgage Bank tJ stand vested 
in Central Mortgage Bank. 
2 
22. Powers of the Mortgage B-:1.nk wher~ property r,,.... de>troyed or 
security becomes insufficient. 
23. Power of Board <;>r of Trustee to distrain and sale of prope rty, etc. 
24. Mor tgagors' powers to lea5e. 
25. Mortgage not to be questioned on insolvency of mor tgagor. 
26. Power of Mortgage Bank to receive money and grant valid dis­
charge notwithstanding assignment ol ivlortgage deeds to the 
Central Mortgage Bank. 
27. Prior ity of Mortgage over certain claims. 
28. Ri ght of Mortgage Bank to pay prior debts of mortga gor. 
2 9. Reg istration of documents executed on behalf of a Mortgag~ 
Ban"k or of the Central Mortgage Bank. 
I 
30. Proof of d ocuments or entries in documents. 
31. Provisions of the Act shall apply to loans advanced by Mortgage 
Banks from funds not borrowed from the Central Mortgage 
Bank. 
32. Service of Notic e. 
33. Sections 102, 103 and 104 of the Transfer of PJ"09ert y Act, 1882, 
to appl y to such notices under t!J.is Act. 
34. Officers ·of Mortgage Banks and the Central Mortgage Bank and I 
sale officers 'not to bid at &ale. 
35. Dele gation of certain powers by Board 
36. Powers of the State Government to make Rules. 
37. Powers o{ the Board to make regulations. 
THE AS5AM CO-OPERATIVE LAND MORTGAGE BANK 
ACT, 1960 
An 
Act 
to facilitate the working of the Co-operative 
L a ud Mort gage Ba:ak s in the State of Assam . 
Preamble. Whereas it is expenient to facilitate the working o f 
the Co-operative Land Mortgage Banks in the State 
of Assam with a yiew to providing for the f!Tant of 
long-term loans to owners of land or other immov­
ab le property to enable them to disch :.i rge their debts ; 
to carry out agricultural improvem ents and to promot e 
th rift and self-help among them, in the manner 
herei nafter appearino,- : 
3 
It is hereby .. nacted in the E'.leventh Year of the 
Repu blic of .i ndia as follows:-
Short title, 1. (I) This Act may be called the Assam Co-ope . 
extent and rative Land Mortgage Bank Act, 1960. 
commence· 
mcnt. (2 \ I 1i exter1ds to the whole of the State of Assam 
(3) It ~hall come into force on such date as the 
State Governm ent may, by uotification in the official 
Gazette, appoint. 
Definitions, 2. In this Act, unless there is anything repugnant 
in the subject or context,-
(a) "Board" means the Board of Directors of 
the Assam Co-operative Central Land 
Mortgage Bank Limited. 
(bJ "Central ~fortgage Bank" means the Assam 
Co-operati\'e Central Land Mortgage Bank 
Limited. 
(c) "M·1rtgage Bank". means a C:>-operative Absam Act 
Lanrl Mortgage tank registered under tr.e I of 19SO. 
Assam Co.operative Soci eties' Act, 1949 an d 
ad,nitted as a member of th1.. Central 
Mortgage Bank. 
(d ) "Committee" means, in relation to Mort­
gage Bank, the Board of Dircctur. or R)ard 
of Management or the Panchayat or the 
Committee of Management or the Gover­
ni ig B·)dy to 'A horn the management of its 
affairs 
1
i.i entrusted. 
( e) "Pr ~scr ib~d" means prescribed by rule 
made by the State Government under this 
Act. 
(f) "Registrar" means a person appo inted toAssam Act 
perform the duties .of Regi)trar of Co- Jof 1950. 
operative Societies under the Assam Co-
operative Societies' Act of 1949. 
(g) "S.:Je Officer" means the Sale Officer ap­
pointed under Section 19 of this Ac~ to 
attach and sell the property of defaulters 
or to execute any decree by attachmen t and 
sale of property. 
{h) "Trustee" means the Trustee appointed 
under Section 3 of this Act. 
Appointment 3. (1) The Regis trar, or where the State Government 
of dTru~t.ee appoint any other rerson in this behalf, such officer, 
;~we'r~ a~d shall be tl1e Trustee for the purpose of securing the 
functi ons. fulfilment of the obligations ot the Central Mortgage 
Bank to the holders of debe11tures issued hy the Board. 
(2) The powers and functions of the Trustee shall 
be gov erned by the provisiom of this 1\cl and by th~ 
instrument of trusl executed between the Central 
Mortgage Ha nk and the Trustee as modified from time 
to time by mutual agr Lement between the Board and 
the Trustee. 
4. The Trustee appointed under Section 3 shall be a Trustee to . , be <.Jorpo- Corporat10n ~ole by the name of the Trustee for the 
ration Sole. debentures and as such shall have perpetual succession 
and a comrron seal and in his Corporate name shall 
sue and be sued. 
' I f d 5. (1) With the previous sanction of the Trusteef 
ssue o e- h B d f . . . d b b entures b/ e oar may, ro~ tu:ne to time, issue. e ent':res o 
_th e B Jard. one or more denominations for such periods as 1t may 
deem expedient, on the security of the mortgages and 
oth er as£els transferred or deemed to havt l;een trans­
ferred under Section 21 by t.he Mortgage Banks to the 
Central Mortgage Bank and other propt1tit~ of Central 
Mortg c. ge Bank. 
Charge of 
Debenture 
Holders on 
certain pro­
pertie s. 
(2) Such debentures may contain a term fixing a 
period not exceeding ten years frorn the date of issue 
duri ng "bich they shall be irredl em able or reserving 
to the Board the right to call in at ao1)' time any of the 
debentures in advance of the dare fixed for nclemption 
after giving to the debenture holdc-r concerned not less 
than three months' notice in writing. 
(3) The total amo.unt due on the debentures 
issued by tLe Board and outstanding at an) ume ~hal 
n0t !'.xceed the aggn:gate of (a) 1he amounts due on 
the mcrt gage ar.d tl:e value of the otlier asEets trans­
ferred or deerr.ecl to hc.se been nansferrcd under 
Section 21 by the M01tgage Barks to the Central Mort­
gage Bank and 5111:Jsisting at such tin .e; and (b) the 
amounts paid under the mortgages a !Orrsaid and 
remaining in the rands of the Board or of the Trustee 
at that time. 
6. The ho!ders of the debentures h:we 'l floating 
ch ;i rt,e on-
( a) all ;uch mortg"'!ges and as•cts as are referred 
to in clause (a) of sub- ection 13) of Section 
5; 
(b) the amount paid und· r such mort2'ages and 
remaining in tl:-.e hands of the Board or of 
the Trustee; and 
(c) the otht'r properti's of the Central Mort• 
gage Bank. 
5 
G~urantee 7. (I) The principal of and interest on, the 
Gby J State debentures issued under Secti:on 5, shall in respect of overnment • 
of Principal such maximum amount as may be fixed by State 
of, and in- Government and subject to such condition as it may 
terest on, think lit to impose, carry the guarantee of the State debentures. Government. 
Distraint­
when to be 
made; 
(2) The State Government r:yay subject to any 
law of the legislatur~ of the State increas e the maxi­
mum amount of any guaiantee given under sub->ec -tion (I). 
(3) The State Governme _nt may, after consul ting the Board and the Trustee:-
(a) by notification in the official Gazette; and 
( b) by no tire of not lcs~ titan fourteen days in 
such of the principal news papers in the State and 
of other States in India as the State Government 
may select in this behalf; 
discontinue any i, uaran tee given by it or re5trict the 
m<1ximum amount thereof ' or modify the conditions, 
subject to which it. is given with effect from a 
specified <ldte, not being earlier than six months 
from the dat e of publtca.1ion of the notification in 
the official Gazet te: 
Provid ed that the withdrawal, restric t10n or modi­
fication of any guarantee shall not in any way affect 
the guarante e carried by any debentur e issued rrior 
to the date on which such withdraw al, restriction or modification takes effect. 
(4) Every notification and notice referred to in 
sub-section (3) shalt where the maximum amount of 
guarantee is to be restricted or the conditions subject 
to wliich the guarantee is given are to be modified,. 
set fut th precisely the scope and effect of the restriction 
or modification, as the ca~e may be. 
8.(1) If any instalment payable under mortgage 
executed in favour of a Mortgage Bank or any par~ 
of such instalment has remained unpaid for more 
than one month from the date on which it fell due, 
the Committee ma l' in addition to any other remedy 
available to the said Mo1 tgage Bank, apply to the 
Registrar or to such person as the State Government 
may appoint in this behalf for the recovery of s•1ch 
instalment or part by distraint and sale of the pro­
duce of the mortgaged land including the standing crops therecn. 
/ 
6 
(2) On receipt of ~uch application the Registrar 
or the per;on a~ the State Governm .:::it m 1y appoint Act IV of 
in tliis behalf m1y, ftotwithstanJi ;1 g anything con- 1802. 
t .1 ined in the Tr;insfer of Prooerty Act, 1882, take 
<iction in the n.anner as pres crib ed for the purpose of 
distraining and selling such prc,duce : -
Provided tha t no distraint shall be made after the 
expiry of twelve months from the date which the 
instalment fell due. 
(3) The value of the properly distrained shall be 
as nearly as possible, equal to the amount due and 
the txpemes of the diitrai nt and the er st of tht sale. 
Distrainthow g (l) B,. h · h d · to be effi ct- · e1ore or at t e time w en a istramt is 
ed. e mad e und ·r Section 8, the distrainer shall s<.:rve or 
cause to be served u pon the dl faulter a written 
dcm i nd specifying t he amo unt for which the distraint 
is made. 
(2) The dem ;,n<l shzill be d,.t nd and signed b; the 
distrainer and shall be served upon the delaulter by 
delivering z. cop] to hi '11 or in his absence to some 
a dull member of his family at !fr usu -1 place of abode 
or to his authorised agent or whc-n such s~n ice can­
not be effected, by affixing a copy of the demand on 
some conspic..uous p. rt of hi1 abode and of his land. 
,· ale ofpro- 10. (1) lf, within 15 da's from the date of service 
per~ ddis- of dew a id rtf~ rred to in Sectio n 9, the defaulter does 
trame • h · 1· h' h h d ' rr d not pay t e amount or w. ic L _e 1~tram t was euecte , 
the distrain er may sell, i n auction, the distrained 
property or such i:;art thereof, as n,ay in his upinion 
be necessary to satisfy the demand together with the 
expenses of the distraint and 1he coat of the sale. 
(2) Frum the proceeds of such $ale, a deduction 
shall be made at a rate not exceed ing 6 naye paise 
in the 1upee on account of the co5t of the sale 
(3) From the balance shall be deducted the expen­
ses incurred by the distrainer on account of the 
distraint. 
(4) The rem aind er, shall he applied to t1ae dis­
charge of the arn otu t for which th e . <lisll aint was 
made. 
(5) The surplus, if any ~ hall be del ivered to the 
person whose prope1ty has been sold and he }hall 
le given a receipt for the am0unt discha1ged f1om 
the proceed~ of the sale. 
7 
Power of sale 11 ( l) Notwithsta ,1ding anythin"" contained in theAct IV of h b • "' 1"82 ~e~~i:~d . eTransfer of Pr1perty Act, 188 !, where a p_ower of 
0 
sale without the intervention of the comt \s exµresfily 
confrrreu on the Mortga~e Bank by the mortg a~e deed, 
the Committee of such bank or any person authorised 
by such Com -mittee in this behalf shall, in case ·of 
defalt of paym.mt of the mo1tgdge money or any 
El.art thereof, hav e power in addition to any other 
remedy available to the bank ro bring the mortgaged 
property to sale without the int ervention of the court 
(2) No such pow er ;hill be execcised unles~ and 
until­
( a) 
(b) 
the Bo::1.c·d h::is previouily a c1 ho rised the 
exercise of the power confeued by su1J­
section ( l) after hear ing t'.1e objection<>, 
if any of 1 he mor · g 1gor : 
notice in wri~ing requiring payment of farh 
mortgage money or part has been served 
upon-
(i) the mortgagor : 
(ii) any person ..... ho has any intere3 ~ in or 
charge ppon the property mc•rtg::i.o,; ed 
or in or upon the right to red('em the 
same ; 
(iii) any surety for the payment of the 
mortgaged d ~bt or a!ly part thereof ; 
(iv) any credibr of the mortgagor who 
ha~ in a suit for the adminis1ration 
of his estal'e obtained a decr ee for sale 
of the mortgaged propert y ; and 
(c) default ha~ beeu PJade in payment of such 
mortgage money or · part thereof for three 
months after such service . 
Application 12. ( 1) In exercise of the power of sale conferred 
for sale and by Section 11 an d in conformity with the provisions 
manner of thereof, the Committee of a Mortgage Bank or any 
sale person duly authorised by such Committee may 
apply t·"l the Sale Officer appr:iinted ir:1 tint behal 
under Section 19 to sell the mortgaged property 
or any P3.rt t~1cre.:>f and such officer sh.i.11 after -
giving n otice of 30 days in wntmg to all the 
persons referred to i-i Section 11, sell proper•y in 
the manner prescribed. 
(2) 1 he sale shall Le by public auction :in.cl shall 
be held in the _village where the mortgaged proper­
ty is situated or at the nearest place of public 
resort if the S..1.le Offir:er is of opinion that the pro­
perty is likely to ~e'.l to better advantage there. 
8 
Applicati?n 13. (I) When a mortgag~d property has been 
to set aside sold under the provi sions of this Act, the mortgagor sale and de- · · h · h · J ·t a d or any person having a r1g t or mtere ;t t erem I OSI 11 1 . . h" I . ' confirmation affected by the sa e may, at any time, wit in t 11rty 
of sale in days from the date of sale, apply to the Committ<'e 
defau~t . or1of the Mortg;;ige Bank conceined to hwe the sale on d1sm1ssal "d h. d · · h ffi f I of auch ap-set asi e on I~ eposltmg at t e o 1ce o sue 1 
plication Bank. 
(a) for paym ent to the Mortgage Bank. the amoun 
specified in the proclamation of sale together with 
subsequent inteerest and the costs, if any incurred 
by the bank in bringing the property to sa~e ; and 
(b) for paymeut to the purchaser, sum equal to 
uch per cent of the purchase money as prescribed ; 
(2). If such deposit is made, the Committee shall 
make an order setting aside the sale. 
(3) Where no .application is made u1,der ~ub­
section ( 1) or where such application is made and 
disallowed, the Committee shall apply to the Regis­
trar or to the pason appointed by th..: State in 
this behalf to make an order co:i.firmirg the sale 
and on such officer's confirming the sale, it shall 
become absolute. 
Distril>ution 14. (1) The proceeds of every sale under the 
of P(0 ceed• provisions of Sections 11, 12, 13 of this Act shall 
ofsa e. be applied by the Sale Officer, first in payment of all 
costs, charges and expenses actually incurred by 
him as incident to the sale or any proposed llale ; 
secondly, in payment of all interest due on account of 
the mortgage in consequence whereof the mortgaged 
property was sold ; thirdly, in payment of the 
principal money due on account of the mortgage ; 
and lastly, in payment of the residue, if any, with the 
approval of the Registrar or the officer appointed by 
the State Government in this behalf to the person 
interested in the property sold or if there are more 
such persons than one then to such persons according 
to their respective interests upon their joint receipt. 
(2) Any person dissatisfied with the decision of the 
Sale Officer in regard to the distribution of the residue 
under sub-section (1) may, within thirty days ofthe 
communication tu him of such decioion, institute a suit 
to establish the right amount of interest he claims in a 
Civil Court within whose jurisdiction the property sold 
is situated. 
(3) The Sale Officer shall not distribute the residue 
under sub-section (I) until thirty days have elapsed 
from the communication of his decision to all tht; 
persons concerned or if a suit _has IJeen insti tutod 
• 
within the said period of thirty days by any such persort 
until the suit is disposed of or otherwise terminated and 
on such disposal or termination, the residue shall be 
distributed in accordance with the decision of the 
court. 
Explanation :-In this sub-section "Court" means the 
Civil Court which would have jurisdic lion to entertain 
a suit to enforce the mortgage and within the limits of 
whose jurisdiction the property sold is situated. 
Certificate- 15. Where a sale of mortga ged property has become 
to purchaser.absolute, the Sale Officer shall grant a certificate 
specifying the property sold and the name of the 
person who, at the time of the sale, is declared to be 
the purchaser. Such certificate shall bear date and the 
day on which the sale became absolute. 
Drlivery of 
property to 
p11rPhaser. 
16. (1) Where the mortgaged property sold is in the 
actual possession of the mortgagor or of some person 
on his behalf or of some person claiming under a title 
other than a lease for a period not exceeding three 
years created by the mortgagor subsequent to the 
mortgage in favour ofthe Mortgage Bank and a certi­
ficate in respect thereof has been granted under 
Section 15, the court shall on the application of the 
purchaser, order delivery of the property to be made 
by putting such purchaser or his agent specially ap­
pointed in writing for the purpose in possession of the 
property. 
(2) Where the property sold is in the occupation of 
a tenant or other person entitled to occupy 
the same and a certificate in respect there­
of has been granted under Section 15, the court 
shall, on the application of the purchaser, and 
after notice to such tenant or other person, order 
delivery to be made to the purchaser by affixing a 
copy of the certificate of sale in some conspicuous 
place on the property and proclaiming to the 
occupant and the public by beat of drum or other 
customary mode at some convenient place that the 
interest of the mortgagor has been transferred to the 
purchaser. 
(3) In regard to the cases dealt within sub. 
sections (1) and (2), the provisions of rules 97 to 103 
of Order XXI of the first schedule to the Code of 
Civil Procedure, 1908 shall, mutatis mutandis and so 
far as may be, apply. Act of 1908 
Explanation: -In this Section "Court" shall have 
the same meaning as in Section 14 . 
Appoir.t· 
ment 01 
Receive1 
an1 hi s 
powers 
10 
17. ( I) The Hoard may on the application of a 
Mortgage Bank and under circu mstances in which the 
power of sale conferred by Section 11 may be exer- . 
cised, appoint in writing, a Receiver of the produce 
and income of the mortgaged property or any part 
thereof and such Receiver shall be entitled either to 
take possession of the property or collect its produce 
and income, as the case may be, to retain out of any 
money realised by him , his exp enses of management 
including his re muneration, if any, as fixed by the 
Board, and to apply the balance in accordance with 
tl:.e provisions of sub-section (8) of Section 69-A of Act IV 
the Transfer of Property Act, 1882. 1882, 
l2) A Receiver appoin ted under sub-section (I) 
may, for sufficient cause and on application made by 
the mortgagor, be removed by the Board. 
(3) A vacancy in the office of the Receiver may 
be .filled up by the Board. 
(4) Nothing in this Section shall empower the 
Board to appoint a Receiver when the mortgaged 
property is already in the posseasion of a Receiver 
appointed by a Civil Court. 
Titleh of 18. Where any property is sold in the exerc ise or pure aser . not to lie purported exercise of a power of sale under the pro-
questioncd vision of this Act, the title of the purchaser shall not 
on the be queitioned on the ground that-
ground of 
irregulari­
ty, etc. 
A..,po'nt· 
ment of 
Sale 
0 tncers. 
(a) the circumstances requir~d for authorising 
the sale had arisen ; or 
(b) due notice of the sale wa~ not given; or 
(c) the power of sale was otherwise improperly 
or irregularly exercised ; 
' but any person who has suffered any damage by an 
unauthorised, improper or irregular exercise of any 
such power shall have a remedy in damages against 
the Mortgage Bank. Such property, shall vest in the 
purchaser free from all encumbrances. 
19. The Registrar shall appoint Sale Officers for 
the purpose of conducting sale under the provisions of 
thi8 Act. 
Rigrhtgt of 20. (l) Notwithstanding anything contained in mo al!'c l c: h . b . . . Bank or of any aw 1or t e time emg In force, it 
the Central shall he lawful for a Mortg<lge Bank or the Central 
Mortgage Mortgage Bank to purch ase any mortgaged property 
Bant to sold under this Act and the property so purchased 
Pt~~c a~ort· shall be disposed of by such Bank by sale within such 
gaged pro· period as may be fixed by the Trustee. 
perty at 
sale. 
IV of 
( L. R's Library) 
ll 
(2) Nothing in the Assam Fixation of Ceiling on 
Land Holdings Act, 1956 fixing a maximum limit of A~safrn Act 
. 1 1 h Id' h ll 1 h · · · f l 0 l957 agncu rura o mg s a app y to t e acq u1smon o .-.--.-. ..._ 
land by a Mortgage J3ank or the Central Mortgage 
Bank under sub-section (I). 
Mortgai;es 21. The mortgages executed in favour of, and all 
executed in other assets transferred to a Mortgage Hank by the 
~vo~r of members thereof shall, with effect from the date of 
Ba~~gage to such execution or transfer (including those mort aged 
stand vested to a Mortgage Bank before commencement of this 
in Central Act ) be deemed to have been transferred by such 
~fo~gage Mortgage Banks to the Central Mortgage Bank ana 
an · shall stand vested in the Trustee. 
~:~rs of the 22. Wher e any property mortgaged to a Mortgage 
Ban~g~~ere Bank is wholly or partially destroyed or the securit; 
property is is rendered insufficient and the mortgagor, having 
destr?yed or been given a reasonable opportunity by the Committee 
iecurity ~e· of the Mortgage Bank, of providing fur thrr security 
comes tn· h d l . . I. sufficienti enoug to ren er the who e secunty sufficient o 
repaying such portion of the loan as may be deter· 
mined by the Committee, has failed lo provide such 
security or to repay such portion of the loan, the 
whole of the loan shall be deemed to fall due at once 
and the Committee shall be entitled to take action 
against the mortgagor '1nder Section 8 or Section 11 
for the recovery thereof. 
Explanation.-A security is insufficient within the 
meaning of this Section unless the value of the mort­
gaged properly exceeds the amount for the time being 
due on the mortgage by such proportion as may be 
specified in the bye-laws of the Mortgage Bank. 
~ 011 i; 0 ~ 23. (I) The Board or the Trustee may direct the 
r~~:tceor ~o Committe e of a Mortgage Bank to take action ag:i.irist 
di train and a defaulter ur.der Section 8, Section 11 or Section 22 
sale of pro• and if the Committee neglects, or fails to do so, the 
perty, etc. Board or the Trustee may take such action, 
(2) Where such action is taken by the Board the 
provisions of this Act and of any rules made in this 
behalf shall apply in respecf thereto as if all references 
to the Mortgage Bank and to its Committee in the 
said provisions were references to the Central Mort­
eage Bank and the Board respectively. 
(3) Where such act ion is taken by the Trustee, the 
provisions of this Act and of any rules made there­
under shall apply in respect thereto as if all references 
to Mortgage Bank or to its Committee in the said 
provisions were references to the Trustee. 
. 12 
MoTtgagors' 24.. (1) Notwithstanding anything contained in the Act IV 
P
1 
ower to Trar.sfer of Propertv Act, 1882, or in any other law lBt.!. 
ease. r h · b • · r h 11 lOr t e time emg m iorce, a mortgagor s a not 
grant a lease of the mortgaged property for a period 
exceeding three years. (2) Any lease granted in contravention of the pro· 
visions of sub-section (1) shall be void. 
not to be 25. Notw1thstandmg ~nvth~ng contained in the Mortgage • . 
que~tioned Provincial Insolv ency Act of 1920 and in any law 
00 
i~solven· relating to insolvency, a mortgage executed in favour 
;rg~r mort· of a Mortgage Bank shall not be called in question on 
· the ground that it was not executed in good faith 
for valuable consideration or on the ground that it 
was executed in order to give the Mortgage Bank a 
preference over the other creditors of the mortgagor. 
Power of 26. Notwithstanding that a mortgage executed in 
B:~~ga,~e re- favour of a Mortgage Bank has been transferred, or is 
ceive money deemed under the provision of Section 21 to have 
and grant been transferred to the Central Mortgage Bank-
valid dischar-
ges notwitb· 
standing 3}si\1ment (a) all monevs due under the mortgage may, in the 
~eedso:~g~~ absence of any specific direction to the co.ntrary issued 
Central by the Board or Trustee and commumcated to the 
Mortgage mortga gor, be paid to the Mortgage Bank and such 
'Sank. payment shall be valid as if the mortgage had no t 
been so transferred ; and 
(b) the Mortga ge Bank shall, in the absence of 
any ~pce ific direction to the contrary issued by the 
Board or Tiustee and communicated to the Mort gage 
Bank be entitled to sue on the mortgage or take 
any other proceedings for the recovery of the 
mon eys due under the mortgaged . 
Priority of 27. A mortgage executed in favour of a Mortgage 
mortgage. Bank and Central Mortgclge Bank shall have prio­
ove! certam rity over any claim of the Government arbingfrom a 
cl rums d . · loan un er the Land Improvement Leans Act, 1883 
or the Agriculturist's Loans Act, 1884 granted after' 
the execution of the mortgage. 
R ight of 28. Where a mortg age is executed in favour of 
Mortgage a a Mortgage Bank fo1 payment of prior debts of 
:i: td b~~ the mortgagor, the Bank may, notwithstanding the 
ofmort;agor provisions of Sections 75 and 76 of the Transfer of Property Act, 1882 by notice in writing, require 
any person to whom any such debt is due, to 
receive payment of such debt or part thereof from 
the Mortgage Bank at its registered office within 
such period a' -µiay be specified in the notice. 
of 
V of 
13 
(2) Where any such person fails to receive such 
notice or such payment, such debt or part thereof 
as the case may be, shall cease to carry interest 
from the t;xpiration of the period specified in the 
notice: 
Provided that where there is a dispute as regards 
the amount of any such debt the per3on to whom 
such debt is due shall be bound to receive pay­
ment of the amount offered by the Mortgage Hank 
towards the debt, but such receipt shall not 
prejudice the right, if any, of such person , to recover 
the balance claimed by him 
. . 29. (1) Notwith,tanding anything contained in the 
Registration Indian Registration Act 1908 it shall not be neces- Act XVI of of documents ' 1908. executed on sary for any officer of a Mortgage Bank or of the 
behalf of a Central Mortgage Bank to appear in person or by 
Mortgage agent ::it any 1 egistration office in any p~oc..!edings 
~hank~r tofl connected with the registration of a.ny instrumevt 
M~rtga~:a executed by him in his official cap::tcity or to sign 
Bank, as provided in SeGtion 58 of that Act. 
(2) Where any instrument is so executed, the 
registering officer to wh')m such istrument is presented 
for regi>tration, may, if he thinks fit, refer to such 
officer as stated in sub- ;ec ti on ( l) for information 
respecting the same, and on being satisfied of the 
execution thereof, shall register the instn•ment. 
Proofof do- 30. Any Mortgage Ban1< or the C~ntral Mortgage 
cum.ents ?r Bank may grant cophs of any document obtained 
cdniriea tin and kept by it in th e course of its busine3s or of any 
c•1men '· . . h d d d entries rn sue ocument ; an any copy so grante 
shall, where certitied in such manner as may be pres­
cribed, be admis>ible in evidence for any purpose 
in the same manner and to the same extent as the 
original document, or the entries therein, as the case 
may be. 
Provisions 31. The provisions of the Act shall apply also to 
of the \ct the loans advanced by Mortgage Banks from fonds 
shall applv which have not been borrowed from the Central 
to loans ad- Mortgage Bank. vanccd by 
Mortgage 
Ranks from 
fun1s not 
borrowed 
from the 
Central 
lortg age 
Bank. 
14 
Senice of 32. Whenever under the provisions of this Act 
notice. notice is requir ed to be given to any person i.n writing, 
it shall be sufficient to send such notice by :-
(i) Registered post with acknowledgement due, 
or (ii) personal service through official 
messenger or (iii) affixing a copy of the 
notice at the last known place of residence 
or business of the person concerned 
through any office bearer or employee of 
the Central Mortgage Bank or Mortgage 
Bank, as the case may be, with two wit­
nesses when the person concerned refuse3 
to accept the noti ce and sign the acknow­
ledgement or he cannot be found. 
Sections 102 33. Tlie provisions of Sections 102 and 103 of the 
103 and 104 'Transfer ?f Prop erty Act, 1882_, and of any rules made t3~ 2 • IV of 
of the Trans· by the High Court under Section 104 of rhat Act for 
fer t of ~r~- carrying out the purposes of the said Sections, shall 
f~~l ct~ apply, so far as .may, in respect of all notices to be 
appl} to served under this Act. 
such notices 
under this 
Act. 
34. At any sale of movable or immov able property 
MOffitcer of held under the provisions of this Act in order to or gage . 
Bank and recover any money due to a Mortg age Bank, no 
the Central Director, Secretary or other Officer of such Bank or 
Mortgage of the Central M )rtgage Bai:k (except o;i behalf of 
Ba1nk ffiand the Bank of which he is a Director or Secretary or an sa e o cers ffi I . not to bid 0 cer) and no sa e officer or o th er p ersons havmg 
at sale. any duty to perform in connection with such sal,., 
shall either dir ectly or indirectly bid for or acquire or 
attempt to acquire any interest in such property. 
Delegation 35. ~he Board may, if it ~hi n ks fit, del egate all or 
of certain any of its powers under Sections ll, 17 and 23 to an 
powers by Executive Committee constituted by it and consisting 
Board. of two or more of its members. 
Powers of 36. 0) The State Government may, by notifica-
the State tion in the official Gazette, make rules for carrying 
Government out the purposes of the Act. 
~ 1 make (2) In particular, and without prejud ice to the 
u es. generality of the foregoing power, such rules may pro­
vide for all or any of the following matters, namely-
(a) the manner of effe\:ting <listraint ; 
(b) the custody, pres ervation and sale of dis­
trained properly ; 
(c) the investigation of claim s by persons 
other than the defaulter to any right or int erest in 
the distrained property and for the postponement of 
the sale pending such investigation ; 
(d) the immediate sale of perishable articles ; 
(e) the due proclamation and conduct of the sale , 
(f) the recovery of the expenses of proclamation and sale ; 
(g) the deposit of the purchase money ; 
(h) the re-sale of the property, if the purchase 
money is not deposited ; and 
(il any other matter which has to be, or may be, prescribed. 
(3) All rules made under this Section shall 
be laid for not less than fourteen days before 
the Assam Legislative Assembly as soon as possible 
after they are made, and shall be subject to such 
modifications as the Legislative Assembly may make 
during the Session in which they are so laid or the 
Session immediately following. 
Power of the 37. (1) The Board may, subject to the approval 
Board to of the Trustee, make regulations not inconsistent with 
ma.kc Regu· the provisions of this Act and the rules made there­
lal!ons . under for enabling it to discharge its functions under 
thi9 Act. 
(2) In particular, and without prejudice to the 
Jenerality of the foregoing power, such regulations 
may provide for all or any of the following matters, namely:-
(a) fixing the period of debent1Jres and the rate 
of interest payable thereon ; 
(b) calling in debentures after giving notice to debenture holders ; 
(c) the issue of new debentures in place of deben­
tun~s damaged or destroyed ; 
(d) converting one class of debenture into ano­
ther, bearing a different rate of interest ; 
(e) the inspection of the account books and pro­
ceedings of Mortgage Banks ; 
( f) the submission of returns and reports by 
Mortgage Banks in respect of their transaction ; 
(g) the periodical settlement of accounts between 
Mortgage Bank and the payment of the amounts 
recovered by Mortgage Banks on mortgages transferred 
or deemed under the provisions of Section 21 to have 
been tn.nsforred to the Central Mortgage Bank; 
I~ 
(h) specifying the form in which applications 
to Mortg~ge Banks for loans should be made and for 
the valuation of the properties offered as security for 
such loans; 
(i) the investment of moneys realised from mort­
gagor; and 
( j) generally for any other matter in respect of 
which the Board s:onsiders provision should be made 
for the purposes of this Act. , 
(3) All such regulations shall be published in the 
official Gazette . 
ASSAM ACT No.II OF 1961 
THE GAUHATI UNIVERSI fY (AMENDMENT) ACT, 1960 
(As passed by the Assembly) 
Received the assent of the Governor on the 6th January 1961 
[Published in the Assam Gazette, Extraordinary, dated th e 10th 
January, 1961] 
An 
Act 
further to amend the Gauhati U niversiry Act, 1947 
Preamble. WHEREAS it is expedient further to amend the Assam Act 
Gauhati University Act, 1947, hereinafter called the ~v; ol 
Principal Act, in the manner hereinafter appearing ; 4 • 
It is hereby enacted in the Eleventh Year of 
the Republic of India as follows :-
Shon title. 1. (1) This Act may be called the Gauh ati 
:1!ce~~:r: University (Amendment) Act, 1960. 
(2) It shall come into force on such date as the 
State Government may, by notification in the 
official Gazette, appoint. 
Amendment 2. In Section 2 of the Principal Act,­
of Section 2 
of Assam Act 
XVI of 1947. 
(1) the following shall be instead as clause (a) 
and the existing clause (a) shaill be renumbered 
as clause (aa), namely:-
(a) 'Board of SecQndary Educaition' means 

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