The Assam Co-operative Land Mortgage Bank Act, 1960

ASSA M ACT N o,l OF 1961
TH E ASSAM CO -O PE RA TIVE  LAN D MO RT GA GE  BANK 
AC T, 1960
Re ceive d th e as se nt o f the
ublished in the Assam Gazette,
Pr es iden t o n th e 29 th De ce mbe r 1960 
Ex tra ordin ary , dated  the 5th Ja nu ary 19 61
CO NTEN TS
1.  Sho rt title , exten t and com men cement.
2. Definitions,
3. Appointme nt of Trus tee and his powers and  functions.
4. Tru stee to be Corpo rati on sole.
5. Issue of deb entures by the  Board.
6. Charge of debe-nture hold ers on certain pro per ties .
7. Guarantee  by State Gover nment of prin cipal of, and  inte rest  or
debentu res.
8. Distrain t—when to be m ade.
9. Dis trnint—how to be effected.
10. Sale of property distrai ned ,
11. Po .ver of  sale when to be exercised.
12 . App lica tion  for sale and ma nner of sale.
13. Appl ication to set aside sale on deposit and  confirma tion of sale
in default or on dismissal of such app lica tion.
14. Distrib utio n of  proceeds of sale.
15. Certificate to purc hase r.
16. Delivery of pr opert y to purchaser.
17. Appointme nt of Receive r and his powers.
18 . Titl e of purchase r not to be ques tioned on the ground of irre^
gularity, etc.
19. Appointme nt of Sales Officers.
20. Right of Mortgag e Bank  or of the  Ce nt ra l' Mortgage Bank to
purcha se the mortga ged pro perty  at sale.
21. Mortga ges executed in favou r of Mo rtgage  Bank to sta nd ves ted
in Cen tral Mort gage Bank.
 
2
22. Powers of the  Mortgage Bank where pro perty  iV destroyed or
security becomes insufficient.
23. Power o f Board or of Trustee  to d istrain and sale of pro perty, etc.
24. Mort gagors’ powers to lease.
25. Mortgage  not to be que stioned on insolvency of mo rtgagor.
26. Pow er of  Mortgag e Bank to receiv e mon ey and grant valid dis­
cha rge no twi thstan din g assignment of Mortgage deeds to the 
Ce ntr al Mortga ge Bank.
27. Prio rity  of M ortgag e over certain claims.
28. Rig ht  of Mortga ge Bank to pay prio r deb ts of mortgago r.
29. Regis tration of docume nts execute d on behal f of a Mortgage
Bank or of the Central Mortga ge Bank.
/
30. Proof of documents or entries in docume nts,
31. Provisions of th e Act shall app ly to loans ad van ced  by Mortgage
Banks from  funds not borrow ed from the  Ce ntr al Mortgage 
Bank.
32. Service of  N otice.
33. Sections 102, 103  and 104 of the  Tra nsfer of Pr operty Act, 1882,
to app ly to such notices under  this Act.
34. Officers of M ortgage Banks and  the Ce ntr al Mortga ge Bank and
sale officers 'not to bid at sale.
35. Delegation  of c ertain powers by Board
36. Powers of the Sta te Gov ern ment to make Rules .
37. Powers of the Board to make regulations.
TH E A SSAM  CO -O PE RA TIVE  LAND  MOR TG AG E BANK 
ACT, 1960
An
Act
to  f acil it ate  th e w ork in g o f th e Co- op er at iv e 
La ird  M or tg ag e B anks in  t he Sta te  o f A ss am .
Preamble. Whereas it is expedient to facilitate the  working o f 
the Co-operative Land Mortgag e Banks in the  State 
of Assam with a view to prov iding  for the  grant of 
long-te rm loans to owners of  land  or oth er immo v­
able  prop ert y to enable them  to discharge their debts •  
to carry ou t agricu ltural improvements and to prom ote 
thrift and  self-help amo ng the m,  in the ma nner 
hereinafte r ap pe aring:

3
It is hereby enacted in the  Eleventh Year of the 
Republic of India  as follows:-—
Short title , 1. (l) This Act m ay be  called the  Assam Go-ope- 
extent and 1'ativ e Lan d Mortgage Bank Act, I960, 
commence-
(21  It  ex tends  to the  whole of the Sta te of Assam
(3) It shall come into  force on such da te as the 
State Governmen t may, by notif ication in the official 
Gazette, app oin t.
Definitions, 2 . In  this Act, unless the re is anythin g rep ugnant 
in the subject or c ontex t,—
(a) “ Boa rd” means the Board of Directo rs of 
the  Assam Go-operative Ce ntr al Land 
Mortgage Bank Limited.
(bj “ Ce ntr al Mortgage Bank” means the Assam 
Co-operative  Cen tral  L and  Mortgage Bank 
Limited. •-
(c) “ Mortgage Bank” , means a Co-o perative A ss am  Act
Land Mortgage Bank registered under ttie 1 o f  l9 5 0 ’  
Assam Co -operative Societies’  Act, 1949 and 
admitted as a mem ber of the Cen tral 
Mortga ge Bank.
(d) “Comm ittee ” means, in rela tion  to Mort­
gage Bank, the  Board o f Directors or Board 
of Management or the Panch aya t or the 
Com mittee of Management or the  Gove r­
ning Body to whom the manag em ent  of its 
afia irs'is entrusted.
(e) “ Proscribed”  means pres crib ed by rule
mad e by the  State Governme nt under this 
Act.
(f j “R egi strar”  mea ns a person app ointed toA ssa m Ac t 
perform the  duties of Re gis trar of Co- !ofl950. 
operative Societies und er the Assam Co­
operativ e Societies’ Act of 1949 .
(g) “Sale Officer” mea ns the Sale Officer ap ­
pointed  und er Section 19  o f this Act to 
attach  and sell the pro per ty of defaulters 
or  to execute  an y decree by attachm ent and 
sale of property.
(h) “T rus tee” means the Trustee app ointed 
under  Section 3 o f this Act.

4
Appointm ent 3. (1) Th e R egis trar,  or where th e Sta te G overnm ent 
an d^ hi T a PP° in t  a n y o the r person in this beha lf, such officer, 
power's and be the  Tru stee  for the purpose of securing the
functions, fulfilment of th e obligations ot the Central Mortgag e
Bank to the holders of debentures issued by the Board.
(2) The powers and functions of the  T rustee shall 
be governed by the provisions of this Act and by tin! 
ins tru me nt of tru st executed betw een the Cen tral 
Mortgage Bank an d the Trustee as modified from time 
to time by mu tua l agreem ent between the Board and 
the  Trustee .
4. Th e Tru stee a ppo inte d under Section 3 shall be a 
Ve^Corpo- Co rpo ration  Sole by the nam e of the Tru stee  for the
ration  Sole, deb entures and  as such shall have perp etu al succession 
an d a common seal and in his Cor porate name shall 
sue an d be sued.
J5. (1) With the  previous sanction of the Trusteef 
b entiues 'byth*5 Board may , from time to time, issue debentures o 
th e Board. one or more  denominations for such periods as it may
*  deem  exp edient, on the security of the mortgages and 
oth er assets transferred or deemed to have been tians- 
ferred  under Section 21 by the Mortgage Banks to the 
Ce ntr al Mortgage Bank and othe r properties of Ce ntra l 
Mo rtga ge Bank.
(2) Such debentures may contain a term fixing a 
period not exceeding ten years from the date  of issue 
du rin g which they shall be irred eemable or reserving 
to the  Board the right to call in at any time  any of the 
deb entu res in adva nce of the date fixed for redemption 
aft er giving t o the  d eben ture holder concerned not les s 
than  three months’  notice in writing.
(3 1 The  tota l amo unt due on the debentures 
issued by the Board and outstanding at any time shal 
not exceed the aggregate of (a) the amounts due on 
the  mortgage and  the value of the other assets tran s­
ferre d or deemed to have been transferred under 
Section 21 by the Moitgage Barks to the Central Mo rt­
gage Bank and subsisting a t such time; and (b) the 
amounts  paid unde r the mortgages aforesaid and 
rem aining in the  hands of the Board or of the Trustee 
at  tha t time.
6. Th e holders of the debentures have a floating 
charge on—
(a) all such mortgages and assets as are referred 
to in clause (a) of sub-section (3) of Section 
5j
(b) the amount paid under such mortgages and 
remaining in the hands of the Board or of 
the Trustee; and
(c) the othe r properties of the Central Mort­
gage Bank.
Charge of 
Debenture 
Holders on 
cer tain p ro­
perties.

5
Ga ura nte e 7. (1) Th e pri ncipa l of and  interest on, the
Government d e b e n t u r e ? issued under Section 5, shall in respect of 
of principal s u c h maxim um emount as may be fixed by State  
of, and in- Gov ernm ent and subject to such cond ition  as it may 
terest on, think fit to impose, carry the  gua ran tee  of the  S tate 
debentures. Gov ernm ent.
(2) The State Gov ern ment iyay subject to any 
law of th e legisla ture of the State increase the  max i­
mum  amount of any gu aia nte e given under  sub-s ec­
tion (1).
(3) The State Gov ern ment may, after con sult ing 
the Board an d the  Tru stee :—
(а) by notification in the  official Gazette; and
(б) by notice of not less tha n fourteen days in 
such of the prin cipal news papers in the Sta te and 
of oth er States in Ind ia as the  State Governme nt 
may select in this behalf;
disco ntinu e any suaran tee  given by it or restrict the 
maximum amoun t th er eo f'o r modify the conditio ns, 
subject to whic h it is given with effect from a 
specified date, not bein g earlier th an  six months 
from the  date of pub lication  of the notification in 
the official Gaz ette :
Provided th at the  wit hdraw al, restriction or modi­
fication of any guara nte e shall not in any way affect 
the gua ran tee  carried  by any debentu re issued prior 
to the date on which such withdrawa l, restriction or 
modification takes effect.
(4) Every notif icati on and  notice referred to in 
sub-section (3) shall wher e the  max imu m amount of 
gua ran tee  is to be restricte d or the conditions subject 
to which the guara nte e is given are  to be modified, 
set foith precisely the  scope and effect of (he restrictio n 
or modification, as the  case may be.
whwuobe 8.(1 ) a n Y  instalment payable  under  mortgage 
made: executed in favour of a Mortgag e Bank o r any par t
of such insta lment has remained unp aid for more 
tha n one mon th from the  date on which it fell due, 
the Com mitte e ma y in addition  to any oth er remedy 
available to the said Moitgage Bank, app ly to the 
Reg istra r or to such person as the State Governm ent 
may appo int  in this beh alf for the  recovery o f such 
inst alm ent or pa rt by distrai nt and sale of the  pro ­
duce of the mor tgag ed land including the  standing
crops ther eon.

6
(2) On receipt of such app lication  the Regis trar
or the person as the State Governm ent may  appoint Act IV  of 
in this beh alf may , frotwith stan fiug  any thin g con- 1882. 
tained in the Tra nsfe r of Prooerty Act, 1882, take 
action in the man ner  as prescribed for th e purpose ot 
dist rain ing and  selling such produce :
Prov ided  that no distrai nt shall be mad e after the 
expiry of twelve mon ths from the date which the  
insta lment fell due.
(3) Th e valu e of the  pro perty dist rain ed shall be •  
as nearly as possible, equal to the amoun t due and 
the  expenses of the  distraint and the  cost of  the  sale.
S'be ^fflc t^ 9' (I) Before or at the time when a dis tra int  is 
e(j. made und  r Section 8, the dist rain er shall serve or
cause to be served upo n the defaulter a written 
dr rmnd  specifying the amoun t for w hich the distr aint
is made.
(2) 'The dem and shall be doted an d signed by the 
distrai ner  and shall be served upo n the defa ulter by 
deliveri ng a copy to him  or in his absence to some 
adult  mem ber of his faintly at  hi- usu 1  place of abode 
or to his auth orised agen t or when such service can­
not be effected, by affixing a copy of the dem and on 
some conspicuous p. rt  o f bis abode and  of his land .
ale of pro-  10. (1) If, within 15  da \s from the date of  service 
t ? / * S"  dema  id r tf  rred to in Section 9, the  defa ulter does 
ram e . n Q t  p a y a m o u l l t  po r  w t, ic h distrai nt was effected, 
the  distrainer may sell, in auc tion , the dist rain ed 
prop erty  or such pa rt thereof, as may in his opinion 
be necessary to satisfy the dem and together with the
expenses of the distraint and  the cost o f the  sale.
(2) Fro m the  proceeds of such sale, a deduction 
shall be made at a rate not exceeding 6 naye  paise 
in the iup ee on accoun t of the cost of the saie
(3) From the bala nce shall be deducte d the expe n­
ses incurre d by the dist rain er on account of the 
distrain t.
(4) Th e rem ainder , shall he app lied  to the  dis­
charge of the  amount for which the  distraint was 
made.
, (5) Th e surplus, if any shall be delivere d to the
person whose pro pei ty has been sold and he rhall 
te  given a receip t for the amoun t discharged from 
the proceeds of the sale.

7
Power o f sale 11. (1) Notwith stan ding  any thin g con tain ed in th e A c t IV  
K re rc is ed  'Tran sfer of Prop erty Act, 188  !, where a power of 18 2
sale wit hou t the interven tion of the court is expressly 
conferred on the Mortgage Bank by the mo rtgage deed, 
the Committee of such ban k or any person  authorised 
by such Com-mittee in this beh alf shall, in ca se  of 
defalt of paymen t of the mortgage money or any 
part thereof, have  power in add itio n to any other 
remedy ava ilab le to the bank ro brin g the mortgaged 
property to sale with out the interv ention of t he court
(2) No such power shall be exercised unless an d 
until—
(a) the Board has previously an llorised the 
exercise of the power conferred by sub­
section (1) after hea ring  the  objection s, 
if any of ihe mortga gor :
(bl notice in writing requ iring pay me nt of such 
mortgage money or pa rt has been  served 
upo n—
(i) the mortgagor :
(iii any person who has any interest in or 
charg e upo n the  property mortgaged 
or in or upo n the righ t to redeem  the 
same ;
(iiij any surety for the paym ent of the 
mort gaged deb t or any p art  thereof :
(iv) any cre ditor of the mor tgagor who 
has in a suit for the  adm inis irat ion 
of his estate obtain ed a decree for sale 
of the mortga ged  propert y ; and
(c) default has been made in pay men t of such 
mortgage money or -part  the reo f for thre e 
months afte r such service.
Application 12. (1 ) In exercise of the power of sale confe rred 
for sale a nd by Section H a n d  in confermity w ith the provisions 
manner of thereof, the Com mit tee of a Mortgage Bank or any 
sa le person duly auth orised by such Com mittee may
apply to the Sale Officer app ointed in th at  behal 
under Section 19  to sell the mortgag ed property 
or any pa rt thereof and such officer shall after- 
giving n otice of 30 days in writing to all the 
persons referred to in Sectio n 11 , sell pro perty  in 
the man ner prescribed,
(2) The sale shall be by public auc tion and shall 
be held in the ,village where the m ortgaged  pro per ­
ty is situated or at the nearest place of public 
resort if the Sale Officer is of  opinion that the pro ­
perty is jikely to sell to better adv antag e ther e.
of
 
8
Application 13 . (1) When a mortgaged property has been 
to set aside s opj u n (j e r  th e provisions of this Act, the  mortga gor 
posdt^1 a n d o r  a n y person  havin g a rig ht or interest therein 
confirmation affected by the sale m ay, at any time , within thir ty 
of  sale in days from  the date of sale, a pply  to the  Committee 
defa ult Or.'of the Mortga ge Bank conce ited to have the  sale 
° n of su chSap -s e t  a sid e  o n  his depo sitin g at the office of such
plication Ba nk .
(a) for pay ment to the Mortgag e Bank, thea m ou n 
specified in the  pro clama tion of sale together wit h 
subs eque nt inteerest and  the  costs, if any  incu rred 
by the  bank in bringing the  pro per ty to sale ; and
(b) for pay me ut to the  purcha ser, sum equal to 
uch per cent of the purc hase money as p res cribe d;
(2 ^> If  such dep osit is mad e, the Com mit tee shall 
make an ord er setting aside the sale.
(3) Where no app lica tion is made under sub­
section (1) or where such app lica tion is made an d 
disallowed, the Com mittee shall ap ply  to the  Regis ­
trar  or to the  person app ointed by the  Sta te in 
this beh alf to make an order ^confirming the sale 
and  on such officer’s confirming the  sale, it shall 
becom e absolute.
Di str ibu tio n 14 . (1) Th e proceeds of every sale un de r the 
°f fie 0C ee d*  Pr o v *si° n s  Sections 11, 12, 13  of this Act shall 
be app lied  by the Sale Officer, first in pay me nt of all 
costs, charges and expenses actually inc urr ed by 
him  as i ncid ent to the  sale or any proposed sale ; 
secondly, in paym ent of all interest due on accoun t of 
the mortga ge in consequence whereof  the mortgage d 
property was sold ; thirdly , in pay men t of the 
princi pal  m oney due  on accou nt of the mortgage  ; 
and  lastly, in paym ent of th e residue, if an y, with the 
app roval of th e Re gis trar or the  officer app ointed by 
the  Sta te Gov ern ment in this be half to the  person 
inte rested in the  pro perty  sold or if there are  more 
such persons than  one then to such persons according
to the ir respective interests upo n their  joint receipt.
(2) Any perso n dissatisfied with the decision of th e 
Sale Officer in regard to the distribution of the residue 
und er sub-section (I) may, within thi rty  days of the 
com mun ication to him of such decision, institu te a suit 
to establish the right amoun t of inte rest  he claims in a 
Civil Court within whose jurisd iction  the  pro perty  sold 
is situa ted.
(3) Th e Sale Officer shall not dist ribu te the  residue 
under sub-section (1) until thirty days have elapse d 
from the  communication of his decision to all the 
persons conc erned or if a suit has been institu ted

9
within the said period of thirty days b y any such person  
until the suit is disposed of or otherwise terminated and  
on such disposal or terminat ion , the residue shall be 
distr ibuted in acco rdan ce with the decision of the  
court.
Exp lanatio n :—In this sub-section “ Co urt” means the 
Civil Court w hich  would have  j ur is di ci on  to  enter tai n 
a suit to enforce the mortga ge and  with in the limits of 
whose jurisdic tion  the  prop erty  sold is sit uate d.
Certificate 15. Where a sale of mortgaged pro perty has become 
to  p i>rch aser.a k30 iu t e , t he  g a ]e Qfg c e r  s hall grant a certificate 
specifying t he pro perty  sold and  the  name  of the  
person who, at the time  of th e sale, is decla red to be 
the purchase r. Such certificate shall bear date and the
day on which the  sale becam e absolute.
property to (1) Where the  m ortg aged  pro per ty sold is in the
purchaser, actual possession o f the mortga gor or of some person 
on his beh alf or of some person claiming under  a title 
other than  a  lease for a period not exceeding three  
years crea ted by the mortga gor subsequ ent to the  
mortgage in favou r of the  Mortgage Bank and  a certi­
ficate in respect thereo f has been granted  under 
Section 15, th e court shall on the app lication of the  
purch aser, order d elive ry of th e propert y to be made 
by putting  such pur cha ser  or his agent specially ap ­
pointed in writing  for the pur pos e in possession of th e
property.
(2) Where the pro per ty sold is in the occ upa tion  of 
a ten ant  or other person ent itle d to occupy 
the same and  a certificate in respect the re­
of has been gra nte d under Sectio n 15, the  cou rt 
shall, on the app lication of  the  pur cha ser, and 
after notice to such ten an t or other person, ord er 
delivery to be made to the  purchase r by affixing a 
copy of the certificate of sale in some conspicuous 
place on the pro perty and proclaimin g to the 
occupant a nd the public  by beat of dru m or oth er 
customary mode at  some convenient place th at the  
interest of the mor tgag or has been transferred to the 
purchaser.
(3)  In  regard to the  cases dealt  wit hin sub­
sections (1) and (2), the  provisions of rules 97 to 103 
of Ord er XX I of the first schedule to the  Code of 
Civil Proc edure, 1908 shall, mutatis mutandis and  so 
far as may be, apply .
Explanation:—-In  this Sectio n “C ou rt” shall have 
the same meaning as in Section 14.

io
Ap point­
me nt oi 
Rece ivei 
an d hi s 
pow er s
17. (1) Th e Board may  on the  a pplication of a 
Mortgage Bank and  under circu mstances in whic h the 
pow er of sale conferred by Section 11  may be exer- 
cised, appoint in writin g, a Rec eiver of the produce 
and  income o f the  mortga ged pro perty  or any pa rt 
the reo f and  such ^Receiver shall be entitle d either to 
take possession of the  pro per ty or colle ct its produc e 
and  incom e, as the case m ay be, to ret ain  ou t of any 
money realised by him, his expenses of m ana geme nt 
incl uding his rem unera tion, if any, as fixed by the 
Board, and to apply the  balance in accord anc e with 
the  provisions of  sub-se ction (8) of Section 69-A of Act 
the  T ran sfer o f Pro perty Act, 1882. 1 8 8
(2) A R eceiv er app ointed under  sub-s ection (1) 
may, for sufficient cause and  on app lica tion made by 
the  m ortgagor, be removed by the Board.
(3) A vacancy in the office of the Rec eive r may  
be filled up by the  Bo ard .
(4) Nothing in this Section shall empow er the  
Board to appoint a Receive r whe n the  mortga ged 
pro perty  is alread y in the possession of a  Receiver  
appo int ed by a  Civil Co urt.
18. Wh ere  any pro per ty is sold in the exercise or 
not C to  Ibe purp ort ed exercise of  a power of sale under  the pro- 
que stio ned  vision of this Act, the title of the purch ase r shall no t 
on th e ques tioned on the gro und  t hat—
grou nd  of
irre gula ri­
ty , etc. (a) the circum stanc es req uired for auth orising 
the sale had arise n ; or
(& ) due notice of t he sale was not g iven; or 
(c)  the pow er of sale was  otherwis e imp roperly
or irregula rly exercised ;
Aop o'n t- 
me nt of 
Sale
O fficers.
Rig ht  of 
mnrfoqo'P
'b ut any  person who has suffered any  d amage  by an 
unautho rised, impro per  or irre gular exercise of any 
such power shall have a remedy in dama ges aga inst  
the  Mortga ge Bank. Such property, shall vest i n the 
purcha ser free from all encumb ranc es.
19. Th e Registrar  shall appoint Sale Officers for 
the  p urpo se of conductin g sale under the provisions of 
this Act.
mu.. 20. (1) Notwi thstanding any thing con tained  in
B a n k e r  of any law for the time being in force, it  
the Ce ntral shall be 1  awful for a Mortgage  Bank or the  Cen tral 
Mo rtgage  Mortgage Bank t o purchase any mortgag ed property 
e*° s o ^  under this Act and  the  property so purc hased 
the mort- shall be disposed of by such Bank by sale wit hin such 
gaged  pro - perio d as m ay be fixed by the Tru stee. •
perty at
sale .

11
L . R ’s  L ib r a r y
(2) Nothing  in the  Assam Fixation of C eilin g o n  
Lan d Holdings Act, 1956 fixing a  maxim um limit of 
agricultural ho lding shall app ly to the acqu isition of 0 1  5  
land by a Mortgage Bank or the Central Mortgag e 
Bank unde r sub-sc cti on (1).
M or tg ag es  21. The  mortgages executed in favour of, and all 
exec uted  in othe r assets transferred to a Mortgage Bank by the 
favo ur of m e m b e r s  thereo f shall, with effect from the date of 
Ban k 8 to s u c ^  execution or tran sfer (includin g those mo rt aged 
stand vested to a Mortgage Bank before comm encement of this 
in Central Act) be deemed to have been  tran sferee! by such 
B an k838 6 Mortgage Banks to the Cen tral  Mortgage Bank ana
shall stand vested in the T rustee.
Mor^a°eth e 22 - Where any pro per ty mort gaged to a Mortgage 
Ban k where h an k  is wholly or  partia lly destroyed or the  security 
property is is rendered insufficient and  the mortgag or, havin g 
destroyed or been given a reasonable o ppo rtun ity by the Com mittee 
secu rity be- Qf  t jl e Mortgage Bank, of providing fur the r security 
sufficient, enough to ren der the whole security sufficient or 
repaying such portion  o f the loan  as may  be deter­
mined by the Com mittee, has failed to prov ide such 
security or to repa y such portion of the loa n, the 
whole of  the loan shall be deemed to fall due at  once 
and the Com mittee shall be entitle d to take action 
against the mortgag or u n d er Section 8 or Section 11
for the recovery thereof.
Exp lana tion .—A security is insufficient within the 
meaning of this Section unless the  value o f the  mort­
gaged p roperty  exceeds t he am ount for the tim e being 
due on the mortgage by such pro portio n as may be 
specified in the bye-laws of th e Mortga ge Ba nk.
t’o wer  of 23. (1) The Board or the Tru stee may direct the 
trus tee3*  to Committee o f a Mortgage Bank to take action  against 
distrain and a defaulter u nder Section 8, Section 11 or  Se ction  22 
sale  of  pro * and if the Com mitte e neglects, or fails to do so, the 
perty, etc. Board or the Tru stee  may  take such action.
(2) Where such action  is tak en by the Board the 
provisions of this Act and of any rules ma de in this 
behalf shall apply in respect thereto  as if all references 
to the Mortgage Bank and to its Com mittee in the 
said provisions were references to the  Ce ntr al Mort­
gage Bank and the Board respectively.
(3) Where such action  is take n by the Trustee, the 
provisions of this Act and of any rules mad e there­
under shall a pply  in respect thereto as if al! references 
to Mortgage Bank or to its Committee in the said 
provisions were references to the Tru stee,
 
 
12
Mo rtg agors ’ 24. (1) Not withstand ing a nyth ing con tain ed in the  Ac t IV 
Pe°„'^r  t0  Tra nsfer of Property Act, 1882, or i n any oth er law
for the  time being in force, a mortgagor shall no t 
grant a lease of the  mor tgaged pro perty for a per iod  
exceeding thre e years.
(2) Any lease gra nte d in contrave ntion of the pr o­
visions of sub-section (1) shall be void.
Mo rtgage  
no t to be 
que stio ned  
on insolve n­
cy  of  m or t­
gag or.
25. Notwithstanding any thing con tained  in the 
Prov incial Insolvency Act of 1920 and  in any law 
rela ting  to insolvency, a mor tgag e execute d in favo ur 
of a Mortgage Bank shall not b e called in question on 
the gro und  th at  it was not executed in good faith 
for valu able  cons ideration  or on the ground  th at  it 
was executed in ord er to give the  Mortgage Bank a 
preference over the  oth er creditors of the  mortgago r.
Power o f 26. Not withstand ing th at a mortga ge executed in 
Ba nk^ to*  r e- fa v o u r  °f  a  Mortgage Bank has been tran sferred, or is 
ceive mon ey deem ed under the provision of  Section 21 to have  
an d grant bee n transferred to the Central Mortgage Bank— 
valid dis char­
ges no tw ith ­
sta nd ing
assignm ent (a) a ll moneys due u nder the  mortgage may , in the 
D ee ds° totg the a ^ s e n c e  a n Y  specific direction to the  contrary  issued 
Ce ntr al by the Board or Tru stee  and com munica ted to the 
Mortga ge mortga gor, be paid to the Mortgage Bank and  such 
Bank. pay ment shall be valid as if the mortgag e ha d not
been  so transferred ; and
(A ) the Mortgage Bank shall, in the absence of 
an y specific dire ction to the  con trary issued by the 
Board or Tiustee  a nd communicated to the  Mortgage 
Bank be entitled to sue on the  mortgage or take 
any other proceedings for the  recovery of the 
moneys due und er the mortgaged.
Pr io rit y of  27 . A  mortgag e executed in fav our  of a Mortga ge 
mo rtg age Bank and Central Mortga ge Bank  shall hav e prio- 
cl ai ni »e r t a i n over any claim  of the Governmen t arisingfrom a 
loan und er the Land Imp rov ement Leans Act, 1883,
or the A gricu lturist’s Loans Act, 1884 granted after 
the execution of the mortgage.
Rig ht  of  28. Where a mortga ge is executed in favo ur of 
Mo rtgage  a a  Mortgage Bank fo, pay ment of prior debts  of 
pr io r 'deb ts t ^l e mortgag or, the  Bank may , not withstand ing the 
of mo rtg ag or provisions of Sections 75 and 76 of the  Tra nsfer
of Pro perty Act, 1882 by notice in writing, require 
any person to whom  any such debt is due, to 
receive pay me nt of such deb t or pa rt thereo f from 
the Mortgage Bank at  its registered office within 
such period as may be specified in the  notice.
Act  V  
1920.
Act
1 1
Act
I I
Act 1

13
(2) Where any such person  fails to receiv e such 
notice or such pay ment, such debt or pa rt the reo f 
as the case may be, shall cease to carry interest 
from the expiratio n of the per iod  specified in the  
notic e:
Provided th at  where there is a dispute as regar ds 
the amount of any such deb t the pers on to whom 
such deb t is due shall be bound to receive pay­
ment of the amoun t offered by the  Mo rtgage  Bank 
towards the debt, but such rec eip t shall not 
prejudice the rig ht, if any, of such person, to recov er 
the balance claimed  by him
29. (1 1 Notwithsta nding any thin g con tain ed in  the 
SfdocX °nnts
I n d i a i?  Registration Act 1908  it shall no t be neces- A c t
1^ 1 o f  
executed on s a rV  for any officer of a  Mortgag e Bank or of the 
behalf of a Central Mortgage Bank to app ear  in pers on or by 
Mortgage agent at any registra tion  office  in any p-oceedings 
the" Central c o nnected with  the registra tion  of any inst rum ent 
M ort gag e executed by him in his official capacity or to sign 
Bank. as provided in Section 58 of th at Act.
(2) Where any inst rum ent is so executed, the 
registering officer to whom such istr ument is presented 
for registration , may, if he think s fit, refe r to such 
officer as stated in su'o-iection (1) for inform ation 
respecting the same, an d on being satisfied of the 
execution thereof, shall register the instru me nt.
Proof o f do- 30. Any M ortgage Bank or the  C m tral  Mortgage 
cumentj or Bank  may gra nt copies of any docum ent  obtained 
entrie s in  a n cj k e pt j n  (.fjg c o u r s e  o f it s  business or of any
entnes in such doc ument ; and any copy so gra nte d 
shall, where certified in such ma nner as m ay be pres­
cribed, be admissible in evidence for any purpos e 
in the same m ann er and  to the same extent as the 
original documen t, or the entries the rein , as the  case
may be.
Provisions 31. The  provisions of th e Act shall apply  also to 
of the Act the loans advanced by Mortga ge Banks from  funds 
shall ap pl y which have not been  borrow ed from  the  Cen tral
Mortg a g e
Ranks from
fund s not
borro w e d
from the
C en tr al
Mortg a g e
Ban k.

14
Service of  32. Whenever under the provisions of this Act 
lotice. notice is re quired to be given to any person in writing ,
it shall be sufficient to send such notic e by :—
(i) Registered post with  ackn owledgem ent due , 
or (ii) personal service thro ugh  official 
messenger or («» ) affixing a copy of the  
notice at the last known place of residence 
or business of the person  concern ed 
thro ugh  any office bearer or employee of 
the Central Mortgag e Bank or Mortgage 
Bank, as the case may be, wit h two wit­
nesses when the person  concern ed refuses 
to acc ept the  no tice and  sign the acknow­
ledgement or h e can not be found.
Sections 102, 33. Th e provisions of Sections 102 and 103  of the
103  a nd i04’Transfe r of Property Act, 1882, and of any  rules mad e j Cg2 1 of
of the Tra ns- by  the Hig h Co urt  u nde r Sectio n 104 of that Act for
fe
e
r
r t ° Act' c a r l’ying out the purposes of the  said Section s, shall
1832, to  a P P ty , s o  fa r a s  m a y , in respect of all notices to be
apply to served un de r this Act.
such notices
unde r this
Act.
34. At any  sale of movable or imm ovab le pro per ty 
Officer °f held under the  provisio ns of this Act in ord er to 
Bank and recov er any money due to a Mo rtgage  Bank, no 
the Central Directo r, Secretary or oth er Officer of such Bank or 
Mortg a  g e of th e Central M ortgage Bank (except on behalf of 
Ba nk  the  Bank of  which he is a Directo r or Sec reta ry or an 
no ? to I Cbid  Officer) and no sale officer or othe r persons hav ing 
at sale. any duty to perfo rm in conn ection with such sale, 
shall either directly or indirectly bid for or acq uire  or
atte mpt  to acquire  any  interest in such pro per ty.
Deleg ation ^5. Th e Board may, if it  thinks fit, dele gate  all or 
of certain any  of its powers under  Sections 11, 17 and  23 to an 
powers by Executive Com mittee con stituted by it an d consisting 
Board. o f t w o  or more of its members.
Powers of 36, (1) Th e State  Governme nt may , by notifica- 
the State tion in the  official Gazette, mak e rules for carryin g 
Government Out the  purposes of the  Act.
Rules ™a k e  (2) In  par ticula r, and witho ut prej udice to the 
generality of the foregoing power, such rules may pro­
vide for all or any of the following ma tters, na mely—
(a) the  ma nner of effecting dis traint  ;
(b) the  custody, preservation and sale of dis­
trai ned  pro perty  ;
(c) the  investigation of claims by persons 
other than  the defa ulter to any right or interest in 
the  d istra ined  pro per ty and  for the  p ostp onement of 
the sale pen ding  such investig ation ;

15
(rf ) (he imm edia te sale of  perisha ble articles ;
(« ) the due proclam ation and cond uct of th e sale ,
( / )  the recovery of the expenses of proclam atio n 
and sale ;
(g) the deposit of the  purchase money ;
(A ) the re-sale of the property, if the purchase 
money is not deposited ; a nd
(t) any other ma tter which has to be, or may  be, 
prescribed.
(3) All rules mad e und er this Section shall 
be laid for not less than  fourtee n days before 
the Assam Legislative Assembly as scon as possible 
after they are ma de,  an d shall be subject to such 
modifications as the Legislative Assembly may make 
during the Session in which  they  are so laid or the 
Session immed iately following.
Po we r of the 37.(1) Th e Board may, subject to the approval
Bo ard to of the Trustee, make regu lati ons  not inco nsistent wi th 
ma ke Regu- the provisions of this Act an d the rules mad e there­
under for e nabling it to disc harge its functions under
this Act.
(2) In particular , and with out prejudice to the  
generality of the foregoing power, such regulatio ns 
may provide for all or any of the following matters, 
namely :—
(a ) fixing t he period of d ebe ntures and  the  rate 
of interest p ayable thereon ;
( Z > )  calling in debentures afte r giving notice to 
deb entu re holders ;
(c) the issue of new debentu res in place of deb en­
tures damaged or destroyed ;
(« f)  conve rting one class of debenture  into ano­
ther, bearing a different r ate of interes t ;
(e ) the inspection of  the accoun t books and  pro ­
ceedings of M ortgage Banks ;
( / )  the submission of retu rns and rep orts by 
Mortgage Banks in  respe ct of their tran saction  ;
(g) the periodical sett lem ent of ac counts betw een 
Mortgage Bank and the paym ent of the  amo unts 
recovered by Mortgage Banks on mortgages transferred 
or deemed und er the provisions of Section 21 to have  
been transferred to the Centra l Mortgage Bank ;

16
(A ) specifying the  form in which applica tions 
to Mortgage Banks for loans should  b e made and for 
the  v aluatio n of the pro per ties offered as s ecurity for 
such lo an s;
(i) the  inves tment of moneys realised from m or t­
gag or ; and
( j) generally for any other matter in resp ect o f 
whi ch the  Board considers provision shou ld be made 
for the  purposes of this Act.
(3) All such regu latio ns shall be p ubl ished in the 
official Gazette.
ASSAM ACT No.II OF 1961
TH E GA UH AT I UN IV ER SI TY  (AM ENDM ENT) AC T, 1960 
(As passed by the Assembly)
Re ceive d th e as se nt o f th e Go ver nor  on the 6th Ja nu ar y 1961
[Published i n the  Assam Gazette, Ex tra ordin ary , da ted the  10th 
Ja nu ary, 1961]
An
Act
further to  amend the Gauhati University Act, 194 ,7
Pre am ble . Whereas it is expedien t furt her to ame nd the Assam  Act
Ga uhati Univers ity Act, 1947, her ein after called the XVI ol 
Principal Act, in the  ma nner here inafter  appearing  ; 4 •
It is hereby  enac ted in the Ele ven th Yea r of 
the Republic of India as follo ws :—
Short title, j  (i) This Act may be called the Gauha ti 
menceme°!H ? Univers ity (Amendment) Act, 196 0.
(2)  It sha ll come into force on such  date as the  
Sta te Gov ernm ent may, by notification in the  
official Gaze tte, appoint.
Amendment 2 . In Sectio n 2 of the  Princi pal  Act,—of Section 2
of Assam Act
X V I of 1947.
(1)  the follow ing sha ll be instead  as clause (a) 
and  the  existing  clause  (a) shall be ren um bered  
as clause  (aa), nam ely :—
(a) 'Board of Secondary Edu cation’ means

‹ Prev All Assam acts Next ›