The Haryana Agricultural Credit Operations and Miscellaneous Provision(Banks) Act, 1973 (34 of 1973)

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EXTRAORDINARY
Published by Authority/
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C11.-ksaMGARH, THURCDAY. AUGUST 16, 1973
(SRAYANA 25. 1895 SAKA)
PART I
UEGESI,ATIVE suppLEMENT
CONTENTS
A,o rrs
The Haulm Agricultural Credit Operation and
Miscellane,ous Provisions (Banks), Act, 19'3.
(Haryana Act l!'7o. 34 of 1973.
R a g e . *
263- 2 71
PART II OR D I N A N C ES
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Pktr 111 D E LE GA  T ED  LE GI S L A T I O N
PART IV Correction Slips, Republications and Replacements
A r i f
Price : 15 False (exxxiii)

HARYANA GOVT GAZ. (EXTRA.), AUGUST 16, 1972 263
(SRAVANA 25, 1895 SAKA)
PART
LEGISLATIVE DEPARTMENT -
Nctificotiou
The 16th August, 1973
No. 37-Leg./73.--The following Act of the Legislature of the
State of Haryana received the assent of the President of India on the
11th August. 1973, and is hereby published for general information :—
Har yana Act N. 34 of 1973
THE HARYANA AGRICULTURAL CREDIT OPERATIONS AND
MISCELLANEOUS PROVISIONS (BANKS) ACT, 1973.
A N
ACT
to make provisions to facilitate adequate flow of credit for agricultural
production and development through banks and other institutional
credit agenciesandfor matters connected therewith or
incidental thereto.
BE it enacted by the Legislature of the State of Haryana in the Twenty- '
fourth Year of the Republic of India as follows :--
CHAPTER I
PRELIMINARY
1. (/) This Act may be called the Haryana Agricultural Credit Operations
and Miscellaneous Provisions (Banks) Act, 1973.
(2) It extends to the whole of the State of Haryana.
(3) It shall come into force on such date as the State Government may,
by notification, appoint and different dates may be appointed for different
provisions of this Act and for different areas of the State.
Short title, exteni
and commence-
ment.
2. In this Act, unless the context otherwise requires,— Definition$
( a) "agriculture" and "agricultural purpose" shall include making
Land fit for cultivation, cultivation of land, improvement of land
including development of sources of irrigation, raising, protecting
and harvesting of crops, horticulture, forestry, planting and farm-
ing, cattle breeding, animal husbandry, dairy farming, seed farming,
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 categories
of persons engaged in similar activities including marketing of
agricultural products, their storage and transport and the acquisi-
tion of implements and machinery in connection with any such
activity ;

264 HARYANA GOVT GAZ., EXTRA.) AUGUST It:
(SRIVANA 25. 1895 SAKA)
(b) "agriculturist" means a person who is engaged in agriculture:
(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 develop-
ment of agriculture and not less than fifty-one per centum of the
paid up share capital of which is held by the Central Government
or by any State Government or Governments or partly by the
Central Government and partly by one or more State Govern-
ments;.
(d) "bank" means --
(0 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) a subsidiary bank as defined in the State Bank of India (Sub-
sidiary Bank) Act, 1959 :
iv
) any Of tile banks mentioned in column 2 of the First -Seb—edule'
to th e Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970;
• :(v) any banking institution • notified by the Central Government
under section 51 of the Banking Regulatitin Act. 1949
(vi) the Agricultural Refinance Corporation constituted under
the Agricultural Refinance Corporation Act, 1963 . ;
(vii) the Agro-Industries Corporation as defined in sub -clause (c)
(viii) the Agricultural Finance Corporation Limited, a company
' incorporated under the Companies Act, 1956; and
(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 society" means a co-operative society as defined
in clause (c) of section 2 of the Punjab Co-operative Societies Act,
1961, the object of which is to provide financial assistance
as defined in clause (f) of this section to its members and includes
the • co-operative land mortgage bank ;
( f ) "financial assistance" for the purposes of this Act means assistance
granted by way of loans, advances, guarantee or otherwise for
agricultural purpose :
(g) "Registrar" means the Registrar as defined in the Punjab Co-opera-
tive Societies Act. 1961,

HARYANA GOVT. GAZ. (Ex-r.RA.), AUGUST 16, 1973 265-
(S11 AVANA 25, 1895 SAKA)
• • • • • • • • • • • . . 1 4 3 1 1 . . ,
• CHAPTER H
RIGHTS OF AGRICULTURISTS TO CREATE CHARGE ON LAND
AND INTERESTS THEREIN IN FAVOUR OF BANKS
3. (/) 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 land caltivated 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 and
from which the crop is raised.
(2) 'Notwithstanding anything to the contrary contained in the Punjab
Co-operative Societies Act, 1961, or any other law for the time being in
force, no charge in respect of financial assistance extended by a co-operative
society to an agriculturist shall have priority over a charge on the crops raised
by him, standing or otherwise, or any other moveable property in respect of
any: financial assistance given to him by a bank
Provided that the financial assistance made by the bank is —
• . (a) prior in point of time to that of the financial assistance extended
by the co-operative society; and
• (b) on a certificate, in the form prescribed, from the co-operative
society or co-operative societies in the area where the agriculturist
resides.
(3) A co-operative society in the area where the agriculturist holds land
3 hall on demand by him issue a certificate referred to in sub -section (2).
(4) The Registrar of Co-operative Societies, or any other person appoin-
ted by him in this behalf, shall prepare a list of co-operative societies regis-
t ered ' under the Punjab Co-operative Societies Act, 1961, and publish the
s a m e hi the Official Gazette after such interval as may be prescribed.
" (5) A bank may distrain and sell through an official of the State
Government, designated in this behalf by the State Government, the crop
or other produce or other moveables charged, to that bank to the extent of
the agriculturist's interest therein and appropriate the proceeds of such sale
toward S all moneys due to the bank from that agriculturist.
4. (I) 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
on the lines of the form set out in the Schedule hereto or as near thereto as
circumstances p e r m i t ,declaring that thereby he creates, in favour of the bank,
a charge on such land or his interest ther ein o r o t h e r immovable property,
as the case may be, to secure the financial assistance given 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 as if it had been
-- original declaration.
Charge on crop
and other move-
able property in
favour of bank.
Creation of
Charge on
land in
favour of
bank by
declara-
tion.

Rcrooval of
disability
in creation
of charges
and mort-
gages.
priority of
charges
and mort-
gages in
favour ofGovern-melt, bank
and cc-
optativesociety,
- 266 HARYANA GOVT GAZ. (EXTRA.), AUGUST 16, 1972
(SR AVANA 25, 1895 SAKA)
- CHAPTER HI
CHARGES AND MORTGAGES IN FAVOUR OF BANKS AND
THEIR PRIORITIES
5. Notwithstanding anything to the contrary contained in the Punjab
Co-operative Societies Act, 1961, or any other law for the time being in force
and notwithstanding that any land or interest therein stands already charged
or mortgaged to a co-operative society, it shall be lawful for an agriculturist
to create a charge or mortgage on such land or interest therein in favour of
a bank as security for any financial assistance given to the agriculturist by
that bank.
6. (I ) Notwithstanding anything to the contrary contained in any
law for the time being in force but subject to any prior claim of the State
Government in respect of land revenue.—
(a) No charge or mortgage created on any land or interest therein,
after the commencement of this Ac t , in favour of thc State Govern-
ment or a co -operatiie society shall have priority over a charge
or mortgage on such land or interest created by an agriculturist
in favour of a bank as security for financial assistance given to the
agriculturist by the bank after the commencement of this Act
and prior to the charge or mortgage in favour of the State Govern-
ment or the co-operative society; and
(b) any charge or mortgage created on any land or interest therein
in favour of a bank in respect of financial assistance given to an
agriculturist by that bank shall have priority over any other charge
or mortgage that may have been created over such land or interest
in favour of any person other than the State Government, a co-
operative society or any other bank, prior to the date on which
the charge or mortgage was created in favour of the bank.
(2) Where different charges or mortgages over the same land or interest
therein have been created by an agriculturist in favour of the State Govern-
ment, a co-operative society or a bank or more than one bank, any such charge
or mortgage created as security for financial assistance given by the State
Government, co-operative society or the bank or banks by way of term loan
for development purposes shall have priority over the other charges or
mortgages created in favour of the State Government, co-operative societies
or any of the banks; provided that prior notice of any such financial assistance
by way of term loan for development purposes had been given to the State
Government, co-operative societ) or bank and the State Government,
co-operative society or bank has concurred in- such financial assistance, and
where more than one such charge or mortgage is as security for financial
assistance given by way of term loan, the charges or mortgages by way of
security for term loan for development purposes will rank for priority in
accordance with the dates of their creation.
Explanation.—For the purposes of this section "term loan for develop-
ment purposes" shall mean financial assistance which would generally lead
to improvement of agriculture or building up of assets in agriculture but shall
not include financial assistance for meeting working capital, expenses for
seasonal agricultural operations and marketing of crops.
(3) Nothing contained in this section shall apply to borrowings only
from one or more co-operative societies including land mortgage banks.
r . -

HARYANA GOVT GANZ. tEXIBA,), AUGUST 16, 1973 267
(SRAVANA 25, 1895 SARA)
>
4.4
1
ss1 4)
7. (/) Notwithstanding anything contained in any law for the time
being in force, an agriculturist who has availed himself of financial assistance
from a 3 aiik by creating a charge or mortgage on land or interest therein,
s h a l lnot, so long as the financial assistance continues to be outstanding, lease
or create any tenancy rights on such land or interest therein without prior
permission in writing of the bank if he h as not already leased or created tenancy
rights thereon at the time of availing of the financial assistance from the bank.
(2) Any lease granted or tenancy rights created in contravention of this
section shall be void.
CHAPTER IV
ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS
Restrictions
on creation
of tenancy
by agricul-
turist bor-
rower.
8. (/) An official of the State Government notified by the State R ve„
Government as the prescribed authority for the purpose of this section may, o f dues
o n the application of a bank, make an order against any agriculturist or his heir of bank
o r legal representative, directing the payment of any sum due to the bank through
oa account of financial assistance availed of by the agriculturist, by the sale of prescrilled
au thonty.any had or any interest therein up3n which the payment of such money
is charged or mortgaged :
Provided that no order shall be made by the prescribed authority under
this section for the sale of any land or any interest therein or any other
immovable property upon which the payment of money is charged or mort-
gaged unless the agriculturist or the heir or legal representative of the agri-
culturist as the case may be, has been served with a notice by the prescribed
authority calling upon him to pay the amounts due.
•
(2 ) Every order passed by the prescribed authority under sub -section f
shall be deemed to be a decree of a civil court and shall be executed in the
same manner as a decree of such court.
(3). The bank shall pay to the State Government such fee al may be
• - -prescribed for the services rendered by the State Government in connection
with the recovery of dues of the bank.
• (4) Nothing contained in this section shall debar a bank from seeking
• to enforce its rights in any other manner open to it under any other law for
- • the time being in force.
. 9. -(1) Notwithstanding anything contained in any law for the time being Richt of
in force, a bank shall have the power to itself acquire agricultural land or bank to
interest therein or any other immovable property which has been charged or ci sc ipuoi rs ' o t f i dmortgaged to it by an agriculturist in respect of any financial assistance immovable
availed of by him, provided the said land or interest therein or any other property.
immovable property has been sought to be sold by public auction and no
. • p e r s o n has offered to purchase it for a price which is sufficient to pay to the
bank the moneys due to it,
(2) A bank which acquires land or interest therein or any other im-
movable property in exercise 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 has to lease out any land acquired by it under sub-
section (/), pending sale thereof as indicated in sub -section (2), the period of

• 268 HARYA.NA GOVT GAZ., (EXTRA.), AUGUST - lc, 1973
-(SRAV ANA 25, 1895 SAKA)
lease shall not exceed one year at a time and the lessee shall not acquire any
interest in that property notwithstanding any provision to the Contrary
contained in any other law for the time being in force.
CHAPTER V
FINANCING OF CO-OPERATIVE SOCIETIES BY BANKS .
Bank
eligible to
become
member of
co -opera the
society.
Power of
co-operative
societies
to b.srrow
From bnik:,
10. Notwithstanding anything contained in the Punjab Co-operative
Societies Act, 1961, or any law for the time being in force, it shall • be lawfulfor a bank to become a member of a co-operative society. .
11, Notwithstanding anything contained in the Punjab Co-operative
Societies Act, 1961, it shall be lawful for any co-operative society to borrow
from a bank.
- Inspection .12. (1) . A bank shall have the right to inspect the books of any co-
o tsbooks of operative society which has either applied to the banle - for financial assistance
c'' ' Petati _ve or is indebted to the bank on account of financial assistance granted earlier.society by
bank.
• (2) The inspection may be carried out by an officer or any other membe
-01- the paid staff of the bank with the previous sanction in writing .of th
Registrar of Co-operative Societies.
Disputes
bttvr en
bank and
co-operative
szciety.
Settlement
of disputes.
(3) The officer or any other member of the paid staff of the bank under-
taking such in sp e ct i on , shall, at all reasonable times, have access to the
books -of accounts, documents, securities, cash and other properties below:l-
ing 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 in order to ensure the safety of financial assistance
to be made or already made to it.
13. (1) Notwithstanding anything contained in any other law for the
time being in force, any dispute touching the constitution, management or
the business of a co-operative society, between a bank financing a -co,optirative
society, and the co-operative society so financed other than disputes regard-
ing the disciplinary action taken by the society or its committee against a
• 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 purposes- of the foregoing
sub -section, a matter referred to for decision is a dispute or not, the question
shall be decided by tile Registrar whose decision shall be _final. .
14. (1) If the Registrar is satisfied that any matter referred to him or
brought to his notice is a di s p u t e within the meaning of section 13, the
Registrar shall decide the dispute himself or refer it for disposal to the
nominee or a board of nominees appointed by him.
(2) Where any dispute is referred under the foregoing 'sub -Section for
decision to the Registrar's nominee or board of nominees, the ' Registrar

HARYANA GOVT GAZ. (EXTRA.), AUGUST 16, 1973 269
(SRAVANA 25, 1895 SAKA)
may at any time, for reasons to be recorded in writing, withdraw such dis-
pute from his nominee or board of nominees and may decide the dispute
himself or refer it again for ti,ecision to any other nominee or board of
nominees appointed by him.
(3) Notwithstanding anything contained in section 13. the Registrar
may, if he thinks fit, suspend proceedings in regard to any dispute if the
question at issue between a co-operative society and a bank is one involving
complicated questions of law and fact, until the question has been tried in a
regular suit instituted by one of the parties to the dispute. If any such
suit is not instituted within two months from the Registrar's order suspending
proceedings, the Registrar shall take action as is provided in sub -section (1).
15. The Registrar or his nominee or board of nominees hearing a
dispute underunder the last preceding section shall hear the dispute in the manner for hearing
that may be prescribed by the Registrar in this behalf, of disputes.
1 6 . When the dispute is referred for decision, the Registrar or his De cision of
nominee or the board of nominees may, after giving a reasonable opportunity Registrar or
to the parties to the dispute to be heard, make an award on the dispute, his nomin eerdon the expenses incurred by the parties to the dispute in connection with the °r
proceedings and fees, expenses payable to the Registrar or his nonimee or as of nominees-
boa
the ease may be, to the board of nominees. Such an award shall not be
invalid merely on the ground that it was made after the expiry of the period
fixed for deciding the dispute by the Registrar and shall be binding on the
parties to the dispute.
11. Every award given by the Registrar or the Registrar's nominee or Recovery
the board of nominees under section 16, shall, if not carried out, on a certi- of money -
ficate signed by the Registrar, be deemed to be a decree of a civil court and awarded.
shall be executed in the same manner as a decree of such court.
18. (I) If a co-operative society is unable to pay its debts to a bank Powers or
from which it has borrowed, b y reason of its members defaulting in the pay- banks to
ment of the money due by them, the bank may direct the committee of Proceed
such society to proceed against such members of taking action under thePunjab Co-operative Societies Act, 1961. against
members of
Co-operative
societY.
(2) If the committee 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 proceed against such
defaulting members in which even the provisions of the Punjab Co-operative
Societies Act, 1961, the rules and 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 references 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.
19, The Registrar shall draw the attention of the bank financing a Audit. ins-
co -operative society to the defects noticed in every audit, inquiry or peenon and
inspection Of such society conducted as per provisions of the Punjab inquiry
Co-operative Societies Act, 1961, and shall also supply a copy of
such audit, , inquiry or inspection report if demanded, in writing by the
bank; • , tobanks.

, 270 HARYANA GOVT GAZ. (EXTRA.), AUGUST 16, 1973
(SRAVANA 25, 1895 SAKA)
CHAPTER VI
MISCELLANEOUS
Exemption 20. Nothing in any law for the time being in force dealing with money
from legisla- lendingor agriculturists' debt relief shall apply to financial assistance availed
tions relalins of by an agriculturist from a bank.to money len-
ding and agri-
culturists'
debt teller.
Mortgages 21. (I ) Notwithstanding anything contained in any law for the time
executed by being in force, mortgages executed after the commencement of this Act
managers01 by the manager of a joint Hindu family in favour of a bank for securing finan-Join t Hinducial assistance for an agricultural purpose shall be binding on every member
families. of such joint Hindu family.
(2) Where a mortgage executed in favour of bank is called in question
on the ground that it was executed by the manager of a 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.
Modified 22. Section 8 of the Hindu Minority and Guardianship Act, 1956,
application shall apply to mortgages in favour of a bank subject to the modificationof section 8of Act 32 of that reference to the court therein shall be construed as reference to the
1956. Collector • or his nominee and the appeal against the order of the Collector
or his nominee shall lie to the Commissioner.
Power4o 23. ( I ) The State Government may make rules to provide for all matters
makelidels•for which provision is necessary or expedient for the purpose of giving
effect to the provisions of this Act and all such rules shall be published in the
Official Gazette.
-(2) The rules framed under sub -section (/) shall be subject to previous
, publication.
(3) Every rule made under this section shall be laid as soon as may be
after it is made, before the Haryana Legislative Assembly while it is in
-session and if, before the expiry of the session in which it is so laid or the
session immediately following, the House makes any modification in the
rule or decides that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may -be, so,
however, that any such modification or annulment shall be without prejudice
to the validity of anything previously done under that rule.
SCHEDULE
Declaration under section 4(1)
1, (aged years)
residing at , being desirous of availing myself
of financial assistance from the bank, make this decla-
ration as required by section 4(/) of the Haryana Agricultural Credit Qpera-
lions and Miscellaneous Provisions (Banks) Act, 1973, that I ,  - - - - -
-own/have interest as a tenant in the land specified below, and I hereby creit C
vharge•on the said land/interest in land in favour of the bank for securin g
-

HARYANA GOVT GAZ., (EXTRA.), AUGUST 16, 1973 271
(SRAVANA 25, 1895 SAKA)
••• ••11.11. .rowe m •m m ora
the fin antial assistance which the bank may make and for all future assist-
ance, if any, which the bank may make to me together with interest and costs
and expenses thereon.
Name of Name of Name of Khasra Boundaries Area in
Revenue Tehsil District Number South, acres
Estate North,
East,
West
1 2 3 4 5 6
Encumbrances, if any
Assessment Approximate Remarks,
Value Nature Amount if any
Rupees Paise
7 9 10 11
In witness whereof, 1,
this day o
year one thousand nine hundred and-
hereunder set my hand
in the
Witnesses :
Signed and delivered by the above named in the presence of—
(1)
(2)
Signature of Declarant.
SARUP CHAND GOYAL,
Secretary to Government, Haryana,
Legislative Department.
11157 L.R.(P) —Govt. Press, Chd.

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