LexThe Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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Open in Lexace · Ask the AI about this actThe Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT
Gujarat Act No. 19 of 1979
The Gujarat Agricultural Credit (Provision of
Facilities) Act, 1979.
(As modified up to the 31st May, 2012)
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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THE GUJARAT AGRICULTURAL CREDIT (PROVISION OF FACILITIES)
ACT, 1979
CONTENTS
PREAMBLE.
SECTIONS. PAGE No.
CHAPTER I.
PRELIMINARY.
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II.
RIGHTS OF AGRICULTURISTS TO ALIENATE LAND IN FAVOUR OF
BANKS.
3. Removal of restrictions on alienation of land by agriculturists in favour of
banks.
4. Charge on crop and other moveable property in favour of a bank.
5. Creation of charge on land in favour of a bank by declaration.
CHAPTER III.
CHARGES AND MORTGAGES IN FAVOUR OF BANKS BY
AGRICULTURISTS AND PRIORITIES THEREOF.
6. Notice of creation of charge and mortgage in favour of bank to be given to Co-
operative Society.
7. Priority of charges and mortgages in favour of a Bank, Government and Co-
operative Society.
8. Exemption from registration of charge of mortgage in favour of Bank.
9. Noting of charge or mortgage created in favour of bank in Record of Rights.
10. Restrictions on sale of land by agriculturist barrower.
CHAPTER IV.
ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS FROM
AGRICULTURISTS.
11. Recovery of dues of bank through authorised officer.
12. Rights of bank to acquire and dispose of land or interest therein.
13. Exemption to banks from restrictions on acquisiton of land in excess of ceiling.
14. Land not vesting in Government to be charged for unrecovered dues in certain
cases.
15. Recovery of dues in respect of financial assistance to carry out-State-sponsored
Scheme as arrears of land revenue.
CHAPTER V.
FINANCING OF CO-OPERATIVE SOCIETIES BY BANKS.
16. Bank eligible to become member of co-operative society.
17. Inspection of books of co-operative society by bank.
18. Disputes between bank and co-operative society.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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SECTIONS. PAGE No.
19. Settlement of disputes.
20. Recovery of money awarded.
21. Power of bank to proceed against defaulting members of a co-operative
society.
22. Audit inquiry and inspection report of societies to be made available to banks.
CHAPTER VI.
MISCELLANEOUS.
23. Exemption from legislations relating to money lending and relief of
agricultural indebtedness.
24. Mortgage executed by managers of Joint Hindu families.
25. Modified application of section 8 of Act XXXII of 1956.
26. Mortgages not to be questioned on insolvency of mortgagors.
27. Power of State Government to make rules.
SCHEDULE
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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GUJARAT ACT NO. 19 OF 19791
[THE GUJARAT AGRICULTURAL CREDIT (PROVISION OF FACILITIES) ACT,
1979]
An Act to make better provision for the adequate supply of credit for increasing
agricultural production and development in the State of Gujarat and for that purpose to
remove restrictions on alienation of certain agricultural lands so as to enable banks and
other institutional credit agencies to provide credit on such lands; and to provide for the
speedy recovery of the dues of such banks and credit agencies which provide credit;
and to provide for matters connected with, and incidental to the purposes aforesaid.
It is hereby enacted in the Thirtieth Year of the Republic of India as follows :-
CHAPTER I
PRERIMINARY
1. (1) This Act may be called the Gujarat Agricultural Credit (Provision of
Facilities) Act, 1979.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may by
notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires,--
(a) "agricu lture" includes making land fit for cultivation, cultivation of land,
improvement and development of land including development of sources of
irrigation, raising and harvesting of crops, horticulture, forestry, planting and
farming and cattle breeding, ani mal husbandry, dairy farming , seed farming,
fishing, pisciculture, apiculture, sericulture, piggery, poultry farming and such
other activities as are generally carried on by agriculturists, dairy farmers,
cattle breeders, poultry farmers and other categorie s of persons engaged in
similar activities including marketing of agricultural products, their storage and
transport and the acquisition of implements and machinery in connection with
any such, activity; and also includes the purpose enumerated in section 116 of
the Co -operative Societies Act; and the term "agricultural purpose" shall be
construed accordingly;
(b) "agriculturist" means a person who is engaged in agriculture and includes a
co-operative society registered under the Co -operative Societies Act as a co -
operative farming society;
(c) "Agro -Industries Corporation" means a company or other body corporate
one of the principal objectives of which is to undertake activities connected
with or intended for the development of, agriculture and not less t han fifty-one
percent paid -up share capital of which is held by the Central Government or
any State Government or Governments or partly by the Central Government
and partly by one or more State Governments.
(d) "bank" means—
(i) a banking company as defined in the Banking Regulation Act, 1949;
(ii) the State Bank of India constituted under the State Bank of India
Act, 1955;
(iii) Subsidiary Bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959;
(iv) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 ;
(v) any banking institution notified by the Central Government under
section 51 of the Banking Regulation Act, 1949;
Short title, extent
and
commencement.
Definitions
X of 1949
XXI of 1955.
XXX VIII of
1959.
5 of 1970.
X of 1949
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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(vi) the Agricultural Refinance and Development Corporation
constituted under the Agricultural Refinance and Development
Corporation Act, 1963;
(vii) any Agro-Industries Corporation ;
(viii) the Agricultural Finance Corporation Limited, a company
incorporated under the Companies Act, 1956;
(ix) any other financial institution notified by the State Government in
the Official Gazette as a Bank, for the purposes of this Act.
(e) "Co-operative Societies Act" means the Gujarat Co-operative Societies Act,
1961 ;
(f) "Co-operative society" means a co-operative society registered or deemed to
be registered under the Co -operative Societies Act, the object of which is to
provide financial assistance to its members and includes a co -operative land
development bank ;
(g) "financial assistance" means assistanc e granted by way of loans advances,
guarantees or otherwise to an agriculturist—
(i) for any agricultural purpose; or
(ii) for the purpose of carrying out any State-sponsored scheme; or
(iii) for relief against distress caused by fire or by serious draught, flood
or other natural calamities ;
(h) "Government Company" means a Government Company as defined in section 617
of the Companies Act, 1956.
(i) "prescribed" means prescribed by rules made under this Act;
(j) "Registrar" means a person appointed to be the Registrar of Co - operative Societies
under the Co-operative Societies Act ;
(k) "States-sponsored scheme" means a scheme sponsored or adopted by the State
Government or an officer authorised by it in that beh alf, for the development of
agriculture and notified as such by the State Government or the authorised officer, by a
notification in the Official Gazette, for the purposes of this Act.
CHAPTER II.
RIGHTS OF AGRICULTURISTS TO ALIENATE LAND IN FAVOUR OF
BANKS.
3. Notwithstanding anything contained in any law for the time being in force or in any
custom or usage having the force of law, restricting the right of an agriculturist to
alienate his land or any of this interest therein, it shall be lawful for an agriculturist to
mortgage, or create a charge on; his land or any interest therein, in favour of a bank for
the purpose of obtaining financial assistance from that bank.
4. (1) It shall be lawful for an agriculturist to create a charge on the moveable
property owned by him, or on the crops raised by him, standing or otherwise,
or other produce from lan d cultivated by him, to the extent of his interest
therein, in favour of a bank, to secure financial assistance from that bank,
notwithstanding that he may not be the owner of the land on or from which the
crop or other produce is raised.
(2) Where a char ge is created by an agriculturist under sub -section (1) on any
movable property, crops or other produce to secure any financial assistance
given to him by a bank, then, notwithstanding anything to the contrary in the
Cooperative Societies Act, no subsequen t charge in respect of financial
assistance provided to such agriculturist by a co - operative society shall have
10 of 1963.
I of 1956.
Guj.X of 1962.
I of 1956.
Removal of
restrictions on
alienation of land
by agriculturists in
favour of banks.
Charge on crop
and other movable
property in favour
of a bank.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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priority over such charge on the crops or other produce raised by him, or, as the
ease may be, on any other movable property, in respect of any financial
assistance given to him by the bank.
(3) A bank may distrain and sell, through an officer designated by the State
Government in this behalf, the crop or other produce or other movables
charged to that bank to the extent of the agriculturists in terest therein, and
appropriate the proceeds of such sale towards all moneys due to the bank from
that agriculturist, in respect of the financial assistance.
5. (1) Where an agriculturist creates a charge on land or any other immovable
property, which he owns or in which he has an interest, in respect of any
financial assistance given to him by a bank, he may make a declaration in
accordance with the form set out in the Schedule or as near there to as
circumstances permit, declaring that there by he creates in favour of the bank, a
charge on such land or his interest there in or other immovable property, as the
case may be, to secure the financial assistance provided to him by the bank.
(2) A declaration made under sub -section (1) may be varied from time to time
by the agriculturist with the consent of the bank in whose favour the
declaration has been made. Such variation shall take effect from such date on
which the variation, if it had bee n an original declaration would have effect
under section 8.
CHAPTER III
CHARGES AND MORTGAGES IN FAVOUR OF BANKS BY
AGRICULTURISTS AND PRIORITIES THEREOF.
6. A charge or mortgage, on any land or interest therein may be crea ted by an
agriculturist under section 3, notwithstanding anything to the contrary contained in the
Co-operative Societies Act, and notwithstanding that such land or interest therein,
stands already charged or mortgaged to co -operative society provided that prior notice
thereof is given by such agriculturist to the co-operative society concerned.
7. (1) Notwithstanding anything to the contrary contained in any law for the time
being in force—
(a) any charge or mortgage created by an agriculturist on any land or
interest therein, in favour of a bank, as security for financial assistance
given to him by that bank, shall after the commencement of this Act, if
prior in time have priority over any subsequent charge or mortgage in
favour of Government or a co-operative society; and
(b) any charge or mortgage created by an agriculturist on any land or
interest therein in favour of a bank, as security for financial assistance
given to him by that bank shall have priority over any other charge or
mortgage in or over such land or interest t herein in favour of any
person other than Government or co -operative society or any other
bank notwithstanding that such other charge or mortgage is prior in
time to the charge or mortgage created in favour of the bank as
security; for financial assistance given to such agriculturist.
(2) Where different charges or mortgages on the same land or interest therein,
are created by an agriculturist in favour of Government, one or more co -
operative societies or one or more banks, any such charges or mortgages
created as security for financial assistance given by Government, co -operative
society or bank by way of term loan for development purposes, shall have
priority over any other charges or mortgages created in favour of Government
co-operative societies or ban ks, provided a notice of such financial assistance
by way of term loan for development purposes has been given to such
Government co -operative society or bank, and that Government co -operative
society or bank has consented to such financial assistance bein g given; and
where more than one such charge or mortgage is created as security for
financial assistance by way of term loan for development purposes, the charges
or mortgages by way of security for the term loan for development purposes
shall rank in priority inter-se in accordance with the dates of their creation.
Creation of charge
on land in favour
of a bank by
declaration
Notice of creation of
charge and mortgage
in favour of bank to
be given to co-
operative society.
Priority of charges
and mortgages in
favour of a bank,
Government and co-
operative society
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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Explanation.—For the purposes of this section, the expression "term
loan for development purposes" means financial assistance which generally
results in improvement of agriculture or building u p of tangible assets in
agriculture; but does not include financial assistance for working capital
expenses, seasonal agricultural operations or marketing crops.
(3) Nothing in this section shall apply-
(i) to borrowings only from one or more co-operative societies, and
(ii) to the recovery of sums due to Government as arrears of land
revenue.
8. Notwithstanding any thing contained in the Registration Act, 1908, it shall not be
necessary to register a charge in respect of which a declaration has been made under
sub-section (1)of section 5, or in respect of which a variation has been made under sub-
section (2) of that section, or a mortgage executed by an agriculturist in favour of a
bank and such charge, variation or mortgage shall have effect from the date it is created
or made, provided that the bank sends within such time and in such manner as may be
prescribed, a c opy of the instrument whereby the charge, variation or mortgage is
created or made to the Registering Officer within the local limits of whose jurisdiction
the whole or any part of the property charged or mortgaged is situated, and such
Registering Officer shall file a copy or copies, as the case may be, in his Book No. 1
prescribed under section 51 of the Registration Act, 1908.
9. Whenever a charge or mortgage is created by an ag riculturist on land or any interest
therein in favour of a bank as security for financial assistance given to him by that
bank, the bank shall give intimation to the village accountant or such other revenue
officer as may be designated in this behalf by th e state Government, of the particulars
of the charge or mortgage in its favour. The village accountant or such other revenue
officer shall make a note of the particulars of charge or mortgage in the Record of
Rights relating to the land over which the char ge or mortgage has been created. The
bank shall likewise give an intimation to the village accountant or such other revenue
officer as soon as the financial assistance given by it to the agriculturist ceases to be
outstanding and thereupon the village acc ountant or such other revenue officer shall
make a suitable note in the Record of Rights about release of the land from the charge
or mortgage, as he case may be.
10. (1) Notwithstanding anything contained in any law for the time being in force,
an agriculturist who has availed himself of financial assistance from a bank by
creating a charge or mortgage on land or interest therein shall not, after he had
availed of such assistance and so long as su ch assistance continues to be
outstanding, enter into an aggreement of sale of the land, without prior
permission in writing of that bank.
(2) Any agreement of sale entered into, in contravention of sub-section (1) shall
be void and unenforceable.
(3) No twithstanding the lease of the land which is subject to the charge or
mortgage in favour of the bank, or lease of any interest therein or creation of
any tenancy rights on such land the land shall continue to be subject to such
charge or the mortgage :
Provided that where the lessee of land or interest therein becomes
occupant of such land such occupant shall hold the land subject to the charge or
mortgage created by the lessor in favour of the bank except in the case where
the amount of loan given by the bank to the lessor is misused by the lessor.
(4) The question whether the amount of loan granted by the bank to the lessor
is misused or not shall be inquired into and decided upon by an officer
authorized by the State Government in this behalf and any de cision by such
officer shall, subject to an appeal if any made to the State Government in such
manner and within such time as may be prescribed, be final.
XVI of 1908.
XVI of 1908.
Exemption from
registration of
charge or
mortgage in
favour of bank.
Noting of charge
or mortgage
created in favour
of bank in
Record of
Rights.
Restrictions on
sale of land by
agriculturist
borrower.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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CHAPTER IV.
ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS FROM
AGRICULTURISTS.
11. (1) Such officer as may be authorized by the State government for the purpose
of this section (hereinafter referred to as the “ authorized officer”) may, on the
application of a bank, after making such inquiry as he dee ms fit, make an order
on any agriculturist or his heirs or legal representatives, directing the payment
of any sum due to the bank on account of financial assistance availed of by the
agriculturist, by the sale of any land or interest therein on which a ch arge or
mortgage is created as security for such financial assistance :
Provided that no order shall be made by the authorized officer under
this section for the payment of any sum or the sale of any land or interest
therein on which such charge or mortga ge is created, unless the agriculturist or
the heirs or legal representative of the agriculturist, as the case may be,-
(i) have become liable to repay such sum to the bank under the terms
and conditions of the grant of the financial assistance and have c omm- itted
default in repayment of such sum or have otherwise failed to comply with the
terms and conditions of the grants, and
(ii) have been served in the prescribed manner with a notice in writing
by the authorised officer calling upon them to pay the amount due.
(2) Every application by a bank under sub-section (1) shall be made on a court-
fee stamp of a prescribed amount.
(3) Every order passed by the authorised officer under sub -section (1) shall be
deemed to be a decree of a Civil Court of competent jurisdiction and shall be
executed in the same manner as a decree of such Court.
(4) Nothing in this section shall debar a bank from seeking to enforce its rights
in any other manner under any other law for the time being in force.
12. (1) Notwithstanding anything contained in any law for the time being in force,
a bank shall have power to itself acquire agricultural land or interest therein on
which a charge or mortgage has been created in its favour by an agriculturist in
respect of any financial assistance availed of by him, provided the said land or
interest therein has been sought to be sold by public auction and no person has
offered to purchase it for a price wh ich is sufficient to pay to the bank the
moneys due to it :
Provided that no such land or interest herein shall be sought to be sold
by public auction, by the bank, without the previous permission in writing of
the collector of the district in which such land is situated.
(2) A bank which acquires any land or interest therein in pursuance of the
power vested in it under sub -section (1) shall dispose it of by sale, within a
period to be specified by the State Government in this behalf.
(3) If the bank lea ses out any land or any interest therein acquired by it under
sub-section (1), pending sale thereof as indicated in sub -section (2), the period
of lease shall not exceed one year at a time and the lessee shall not acquire any
right to purchase such land or interest leased to him, notwithstanding any
provisions to the contrary in any other law for the time being in force.
(4) A sale by a bank of land or interest therein under this section shall be
subject to the provisions of any law for the time being in f orce imposing
restrictions on purchase of land by non -agriculturists or by a person not
belonging to a Scheduled Tribe or Scheduled Casate or on fragmentation of
land or imposing ceiling on acquisition of land or interest therein.
13. Nothing in any law for the time being in force imposing a ceiling or limit on the
holding of land or regulating the price at which such land may be sold or acquired shall
Recovery of
dues of bank
through
authorised
officer.
Rights of bank to
acquire and
dispose of land or
interest therein.
Exemption to banks
from registrictions
on acquisition of
land in excess of
ceiling.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
9 of 13
apply to a bank acqui re land under this Act at a price which is adequate to cover its
dues and holding such land till such time as the bank sells the land in the manner
provided in section 12.
14. Where by an order made by a Tribunal under section 21 of the Gujarat Agricultural
Lands Ceiling Act, 1960, any portion of land on which mortgage or charge is created in
favour of a bank is declared as surplus land and the amount of compensation
apportioned to the bank under section 24 of that Act in respect of the mortgage or
charge on the land declared as surplus is less than the amount due from the agriculturist
on account of the financial assistance given to the agriculturist b y the bank, then
notwithstanding anything contained in any law for the time being in force, the balance
of the amount due shall be a charge on the portion of the land which the agriculturist is
entitled to hold under the order made under section 21 of that Act.
15. Notwithstanding anything contained in the foregoing provisions of this Chapter, the
State Government may, by an order published in the Official Gazette, direct that any
amount due from the agriculturist towards financial assistance given to him by a bank
for the purpose of carrying out any State -sponsored scheme may be recovered on
behalf of such bank as an arrear of land revenue. Any amount so recovered on behalf
of the bank shall be paid over to the bank after deducting such portion thereof as cost
of collection as the Collector may determine to be reasonable.
CHAPTER V.
FINANCING OF CO-OPERATIVE SOCIEIES BY BANKS
16. Notwithstanding anything contained in the Co -operative Societies Act or any law
for the time being in force, it shall be lawful for a bank to become a member of a co -
operative society.
17. (1) A bank shall have the right to inspect the books of any co- operative society
which has either applied to the bank for grant of financial assistance to be
provided to its members or which is indebted to the bank on ac count of any
financial assistance given earlier by the bank to the society for such purpose.
(2) The inspection may be carried out by an officer or any other member of the
paid staff of the bank with the previous sanction in writing of the Registrar.
(3) The Officer or other member of the paid staff of the bank authorised to
carry out such inspection shall at all reasonable times have access to the books
of accounts documents securities cash and other properties belonging to or in
the custody of the co -operative society inspected by him and shall also be
supplied by such society such information statements and returns as may be
required by him to assess the financial condition of the society and the safety of
financial assistance to be given or already given to the society.
18. (1) Notwithstanding anything contained in the Co -operative Societies Act or
any other law for the time being in force, any dispute touching the constitution
management or business of a co-operative society between a bank which has
given to a co -operative society any money, loan or advance for the purpose of
providing financial assistance to its members and the co -operative society to
which such money, loan or advance has been given, ot her than disputes
regarding disciplinary action taken by the society or its committee against paid
employee of the society shall be referred by either of the parties to the dispute
to the Registrar for decision.
(2) Where any question arises whether, for the purposes of sub -section (1), a
matter referred to for decision is a dispute or not the question shall be decided
by the Registrar, whose decision shall be final.
19. If the Registrar is satisfied that any matter referred to him or brought to his notice is
a dispute referred to in section 18, the Registrar shall decide the dispute himself or
refer it for disposal to a nominee or a board of nominees appointed by him and
thereafter all the provisions of the Co -operative Societies Act relating to the settlement
of disputes, procedure for settlement of disputes appeals against the decisions in such
disputes, enforcement of the decisions, awards or orders in such proceedings, and all
Guj. XXVII of
1961. Land not vesting
in Government
to be charged for
unrecovered
dues in certain
cases.
Recovery of dues in
respect of financial
assistance to carry
out State-Sponsored
Scheme as arrears
of land revenue.
Bank eligible to
become member of co-
operative society.
Inspection of
books of co-
operative society
by bank.
Disputes
between bank
and co-operative
society.
Settlement of
disputes.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
10 of 13
other matters relating to such, disputes shall, mutatis mutandis apply as if it were a
dispute within the meaning of section 96 of that Act.
20. The provisions of section 157 of the Co-operative Societies Act shall, so far as may
be apply to the recovery of any amount found due t o a bank under section 19 as if such
amount were a sum due to the Government.
21. (1) If a co -operative society is unable to pay its debts to a bank from which it
has borrowed , by reason of its members defaulting in the payment of the
money due by them, the bank may direct the committee of such society to
proceed against such members by taking all such actions as are provided by the
Co-operative Societies Act.
(2) If the commi ttee of the co -operative society fails to proceed against its
defaulting members within a period of ninety days from the date of receipt of
such direction from the bank, the bank itself may, under intimation to the
Registrar, proceed against such defaultin g members in which event, the
provisions of the Co -operative Societies Act and the rules and the bye -laws
made thereunder shall apply, as if all references to the society or its committee
in the said provisions, rules and bye-laws were reference to the bank.
(3) Where a bank has obtained a decree or award against a co -operative society
indebted to it, the bank may proceed to recover such moneys firstly from the
assets of the co -operative society and secondly from the members of the co -
operative society to the extent of their debts due to the society.
Explanation.—In this Act "committee", in relation to a co -operative
society, means a committee as defined in clause (5) of section 2 of the Co -
operative Societies Act.
22. The Registrar shall draw the attention of a bank financing a co -operative society to
the defects noticed in every audit or inquiry or inspection conducted under the Co -
operative Societies Act, and shall also supp ly to the bank a copy of each of such audit,
inquiry or inspection report if demanded in writing by it.
CHAPTER VI
MISCELLLANEOUS
23. Nothin g in the Bombay Money -lenders Act, 1946 or any other law relating to
money lending and money -lenders or in any law relating to relief of agricultural
indebtedness for the time being in force shall apply to financial assistance avalied of by
an agriculturist from a bank.
24. (1) Notwithstanding anything contained in any law for the time being in force
mortgages executed after the commencement of this Act by the manager of a
joint Hindu family in favour of a bank for securing financial assistance shall be
binding on every member of such joint Hindu family.
(2) Where a mortgage executed in favour of a bank is called in question on the
ground chat it was executed by the manager of joint Hindu family for a purpose
not binding on the members (whether such members have attained majority or
not) thereof, the burden of proving the same shall lie on the party alleging it.
25. Section 8 of t he Hindu Minority and Guardianship Act, 1956, shall apply to
mortgages in favour of a bank, subject to the modification that reference to the Court
therein shall be construed as reference to the Collector or his nominee, and the appeal
against the order of the Collector or his nominee shall lie to the State Government.
26. Notwithstanding anything contained in the provincial Insolvency Act, 1920, or any
corresponding law for the time bei ng force, a mortgage executed in favour of a bank
shall not be called in question in any insolvency proceed- ings on the ground that it was
not executed in good faith for valuable con - sideration or on the ground that it was
executed in order to give the bank a preference over other creditors of the mortgagor.
Recovery of
money awarded.
Power of bank to
proceed against
defaulting
members of a co-
operative society.
Audit inquiry and
inspection report
of societies to be
made available to
banks.
Exemption- from
legislag tions relatin to
money lending and
relief of agricultural
indet bedness.
Bom. XXXI
1947.
Mortgage executed
by managers of joint
Hindu families.
Modified
application of
section 8 of Act
XXXII of 1956.
XXXII of
1956.
Mortgages not to
be questioned on
insolvency of
mortgagors.
V of 1920
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
11 of 13
27. (1) The State Government may, by notification in the Official Gazette and
subject to the condition of previous publication, make rules for Carrying out
the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power
such rules may be made for all or any of the following matters, namely:-
(a) the manner of serving notice on an agriculturist under the proviso to
sub-section (1) of section 11;
(b) any other matter which is to be, or may be, prescribed.
(3) All rules made under this section shall be laid for not less than thirty days
before the State Legislature as soon as may be after they are made and shall be
subject to rescission by the State Legislature or to such modifications as the
State Legislature may make d uring the session in which they are so laid or the
session immediately following.
(4) Any rescission or modification so made by the State Legislature shall be
published in the Official Gazette and shall thereupon take effect.
Power of State
Government to
make rules.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
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SCHEDULE
(see section 5 (1) )
Declaration under sub-section(l) of section 5.
I…….…………………(aged………………….years) residing
at……………………..being desirous of availing myself of fina ncial assistance from
the…………………………..Bank………………make this declaration as required by
section 5(1) of the Gujarat Agricultural Credit (Provision of Facilities) Act, 1979, that
I…………………………own the land I have interest as a tenant in the land, in the area
specified below and I hereby create a charge on the said land/interest in the said land,
in favour of the Bank for securing the financial assistance which the bank may give
and for all future assistance, if any, which the bank may give to me together with
interest and costs and expenses thereon.
Name of Name of Name of Survey No.
Village Taluka District City Survey No. Boundaries Areas
Plot No. Plot Hissa, South North Hectares
No. East West
Assessment Approximate Encumbrances, if any Remarks
--------------------Value-----------------------------------------------------------------------------------if any
Rupees paise Nature When created Amount
In witness whereof I, S hri……………………………………………
hereunder set my hand this…………………………………………………day
of………………………………….. in the year one thousand nine hundred
and..…………………………………………………………
Witness
Signed and delivered by the above named in the presence of-
(1)
(2)
Signature of the declarant,
Attested by :
Forwarded with compliments to the Village Accountant or other designated
revenue officer with a request to include the particlulars of the
charge………………………………….created under the declaration in the Record of
Rights and to return to the bank for its records.
Manager/Agent.
…………………..Bank.
Date :………………………. Place :………………………….
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
13 of 13
Returned with compliments to the Manager/Agent……………………Bank.
The charge created under the declaration is duly included in the Record of Rights on
the………..day of……………………………..19……….
Date :………………………………………… Village Accountant or other
designated revenue officer.
Forwarded with compliments to the Sub -Registrar, with a request to record the
particulars of the charge……………………………created under the declaration in this
office.
Manager/Agent
…………………..Bank.
Date :………………………. Place :………………………….
Returned with compliments to the Manager/Agent ……………………………
Bank. The charge created under the declaration is duly recorded.
Date :………………………. Sub--Registrar.
-----------------------
1 For Statement of Objects and Reasons, see Gujarat Government Gazette Extra- ordinary, Part
V, dated the 21st March, 1979, p. 267 -269.
This Act was assented to by the President on the 3rd June, 1979.