LexThe Himachal Pradesh Co-operative Agriculture and Rural Development Banks Act, 1979
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this act THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE
AND RURAL DEVELOPMENT BANKS ACT, 1979
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER-I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER-II
BANKS AND LOANS
3. Purpose for which loans may be issued.
4. Institution of Agriculture and Rural Development Banks.
CHAPTER-III
TRUSTEES
5. Appointment of trustee.
6. Vesting of property in trustee.
7. Debenture-holders to have first charge on Gehan, mortgages,
hypothecations etc.
8. Powers and functions of trustee.
CHAPTER-IV
DEBENTURES
9. Issue of debentures by the Board.
10. Redeemable period of debentures.
11. Maximum limit of debentures.
11-A. Power to Borrow money by issue of bonds or by way of loans.
12. Charge on movable or immovable property of the borrower for
amounts borrowed.
12-A. Applicant for loan from the Agriculture and Rural Development
Bank to furnish declaration.
13. Guarantee by State Government of principal and interest on
debentures issued under section 9.
14. Power of Board to make regulations.
14-A. Security of loans.
14-B. Money borrowed for development of land.
2 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
14-C. Loans to persons having restricted rights of transfer.
CHAPTER-V
GRANT OF LOANS-MODE THEREOF
15. Mode of dealing with applications for loan.
16. Order granting loan conclusive of certain matters.
17. The Agriculture and Rural Development Bank to have prior
charge on land.
18. XXXXXXXXXXXXXXXXXX.
19. Section 8 of Act No. XXXII of 1956 to apply to Gehan,
mortgage or hypothecation to Agriculture and Rural
Development Banks subject to modifications.
20. Restriction on lease.
21. Power of the Agriculture and Rural Development Bank to
receive money and grant valid discharge.
22. Powers of Agriculture and Rural Development Bank in case
security property is destroyed or becomes insufficient.
CHAPTER-VI
DISTRAINT AND SALE OF PRODUCE
23. Distraint when to be made.
24. Distraint how to be effected.
25. Sale of property distrained.
CHAPTER-VII
SALE OF MORTGAGED PROPERTY
26. Power to sale when to be exercised.
27. Application for sale and manner of sale.
28. Application to set aside sale on deposit and confirmation of sale
in default or on dismissal of such application.
29. Distribution of the proceeds of sale.
30. Certificate to purchaser.
31. Delivery of property to purchaser.
32. Right of Agriculture and Rural Development Bank to purchase
the property at sale.
33. Appointment of receiver and his powers.
34. Title of purchaser not to be impeached on the ground of
irregularity etc.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 3
DEVELOPMENT BANKS ACT, 1979
35. Appointment of sale officers.
36. Recovery of loans on certificate by Register.
37. Collector to make recoveries during a certain period.
CHAPTER-VIII
MISCELLANEOUS
38. Gehan, mortgage or hypothecation executed in favour and other
assets of Primary Agriculture and Rural Development Banks to
stand transferred to State Bank.
39. Power of Board of trustee to direct distraint and sale of produce
and the sale of the property, etc.
40. Gehan, mortgage or hypothecation not to be questioned on
insolvency of proceedings.
41. Priority of Gehan, mortgage and hypothecation.
42. Right of Agriculture and Rural Development Bank to pay prior
debts of the mortgagor.
43. Power to summon witnesses and requisition documents.
44. Registration of documents executed on behalf of the
Agriculture and Rural Development Bank.
45. Special provisions for Gehan created or mortgage or
hypothecation executed by managers of joint Hindu family.
46. Proof of documents or entries in documents.
47. Service of notice under the Act.
48. Officers of the Agriculture and Rural Development Bank and
sale officers not to bid at sale.
49. Delegation of certain powers by Board.
49-A. Employees etc. to be public servants.
50. Powers of Board to make regulations.
51. Primary Agriculture and Rural Development Banks.
52. Provisions for guarantee funds to meet certain losses.
53. Remission of fees.
54. Registrar’s power to permit any Co-operative Bank to function
as Agriculture and Rural Development Bank.
55. Power of State Government to make rules.
56. Repeal.
57. Savings.
________
4 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
THE HIMACHAL PRADESH CO-OPERATIVE 1[AGRICULTURE
AND RURAL] DEVELOPMENT BANKS ACT, 1979
(ACT NO. 23 OF 1979)2
(Received the assent of the President on the 29th August, 1979 and
was published in the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 25th
September, 1979, pp. 2289-2305).
An Act to supplement the provisions of the Himachal Pradesh Co-
operative Societies Act, 1968 (Act No. 3 of 1969) in order to
facilitate the working of the co-operative 3[agriculture and rural
development banks] in the State of Himachal Pradesh with a view
to providing for the grant of long term loans to owners of land or
other immovable property to carry out agricultural
improvements, to acquire land for the formation of economic
holdings and other like purposes to enable them to discharge their
debts and thereby to promote thrift and self help among them.
Amended, repealed or otherwise effected:-
H.P. Act No. 16 of 19874 assented to by the President on 22nd
July, 1987, published in the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 28th July, 1987, pp. 1253-1267.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Thirtieth Year of the Republic of India as follows:-
CHAPTER-1
PRELIMINARY
1. Short title, extent and commencement.- (1) This Act may be
called the Himachal Pradesh Co-operative 5[Agriculture and Rural]
Development Banks Act, 1979.
(2) It extends to whole of the State of Himachal Pradesh.
1. Substituted for the word “LAND” vide H.P. Act No. 16 of 1987, effective from
16th November, 1987.
2. For Statement of Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 30th April, 1979, p. 1609.
3. Substituted for the words "co-operative land development banks" vide H.P. Act
No. 16 of 1987, effective from 16th November, 1987.
4. For Statement of Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 16th May, 1987, p, 814. Act came into force from 16th November,
1987 vide Notification No. 7-41/74-IV dated 2nd November, 1987, published in the
Rajpatra, Himachal Pradesh (Extra-ordinary), dated 17th December, 1987 pp.
2469-2470.
5. Substituted for the word “Land” vide H.P. Act No. 16 of 1987, effective from 16th
November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 5
DEVELOPMENT BANKS ACT, 1979
(3) It shall come into force on such date1 as the State Government
may, by notification in the Official Gazette, appoint.
2. Definitions.- In this Act, unless the context otherwise requires,-
(a) "Board" means the Board of Directors of the State Bank;
2[(aa) "Gehan" means a special charge on movable or immovable
property, in favour of the Agriculture and Rural Development
Bank or a Primary Agriculture and Rural Development Bank
by a mere declaration in writing by the borrowers for securing
the payment of money advanced, or to be advanced, by way
of loan, which will have all the characteristics of a valid
mortgage;]
(b) "land" shall have the meaning assigned to it in clause (7) of
section 2 of the Himachal Pradesh Tenancy and Land
Reforms Act, 1972 (8 of 1974);
(c) 3"[Agriculture and Rural Development Bank]" means a
4[Primary Agriculture and Rural Development Bank] or State
Bank registered or deemed to be registered under the
Himachal Pradesh Co-operative Societies Act, 1968 (3 of
1969);
(d) 5"[Primary Agriculture and Rural Development Bank]" means
means a 6[Co-operative Agriculture and Rural Development
Bank] registered under the Himachal Pradesh Co-operative
Societies Act, 1968 (3 of 1969) and affiliated as a member of
the State Bank;
7[(dd) "mortgage" means a security by way of mortgage for the
the payment of any definite and certain sum of money
advanced or lent at the time, or previously due or owing, or
forborne to be paid, being payable or for the repayment of
money to be thereafter lent, advanced or paid, or which may
become due upon on a current account, together with any sum
1. The Act came in to force, from 15th November, 1979 vide Notification No. 7-
41/79-II Co-op(s)-II dated 14th November, 1979, published in the Rajpatra,
Himachal Pradesh (Extra-ordinary) dated 19th November, 1979, p. 2511.
2. Clause "(aa)" inserted vide H.P. Act No. 16 of 1987, effective from 16th
November, 1987.
3. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
4. Substituted for the words "Primary Land Development Bank" vide H.P. Act No.
16 of 1987, effective from 16th November, 1987.
5. Substituted for the words "Primary Land Development Bank" vide H.P. Act No.
16 of 1987, effective from 16th November, 1987.
6. Substituted for the words "Co-operative Land Development Bank" vide H.P. Act
No. 16 of 1987, effective from 16th November, 1987.
7. Clause (dd) inserted vide H.P. Act No. 16 of 1987, effective from 16th November,
1987.
6 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
already advanced or due, or without, as the case may be, and
includes any charge or lien on any property for securing
money or money's worth; and]
(e) "Official Gazette" means the Rajpatra, Himachal Pradesh;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "Registrar" means the person appointed by the State
Government to be the Registrar of Co-operative Societies for
the State of Himachal Pradesh or any person appointed by the
State Government to assist the Registrar under section 3 of
the Himachal Pradesh Co-operative Societies Act, 1968 (3 of
1969);
(h) "State Government" means the Government of Himachal
Pradesh;
(i) "State Bank" means 1[the Himachal Pradesh State Co-
operative Agriculture and Rural Development Bank Ltd.],
established for the purposes of this Act;
(j) "State" means the State of Himachal Pradesh;
(k) "trustee" means the trustee referred to in section 5(i) of this
Act;
(l) "Collector" means the Collector of the District or such other
officer not below the rank of the Assistant Collector 1st Grade
as may be specially empowered by the State Government to
discharge the functions of a Collector for the purposes of this
Act;
(m) "Commissioner" means the Financial Commissioner of
Himachal Pradesh for the time being and includes any other
officer specially empowered by the State Government to
exercise the powers of the Commissioner under this Act; and
(n) "joint Hindu family" consists of all persons lineally
descended from the same common ancestor, and their wives
and unmarried daughters.
CHAPTER-II
BANKS AND LOANS
3. Purposes for which loans may be issued.- The 2[Agriculture and
Rural Development Bank] shall advance loans, other than short-term loans
only for the purpose hereinafter enumerated as purposes for which loans may
1. Substituted for the words "the Himachal Pradesh State Co-operative Land
Development Bank Ltd." vide H.P. Act No. 16 of 1987, effective from 16th
November, 1987.
2. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 7
DEVELOPMENT BANKS ACT, 1979
be advanced, that is to say:-
(i) land improvement and productive purposes;
(ii) the erection, re-erection or repairing of houses for agricultural
purposes;
(iii) the purchase of or acquisition of title to agricultural land by
tenants under any law for the time being in force in any part
of the State;
(iv) the liquidation of debts under any Act for the time being in
force in any part of the State.
Explanation 1.- For the purposes of this section, short-term loan
means a loan for a duration of less than 18 months.
Explanation 2.- Land improvement and productive purposes means
any work, construction or activity which adds to the productivity of the land
and, in particular, include the following, that is to say :-
(a) construction and repair of wells (including tubewells), tanks
and other works for the storage, supply or distribution of
water for the purpose of agriculture, or for the use of men and
cattle employed in agriculture;
(b) renewal or reconstruction of any of the foregoing works, or
alterations therein, or additions thereto;
(c) preparation of land for irrigation;
(d) drainage, reclamation from rivers or other waters, or
protection from floods or from erosion or other damage by
water of land used for agricultural purposes or waste land
which is culturable;
(e) building and similar improvements;
(f) reclamation, clearance and enclosure or permanent
improvement of land for agricultural purposes;
(g) horticulture;
(h) purchase of oil-engines and electrical motors for any of the
purposes mentioned therein;
(i) purchase of tractors or other agricultural machinery and
implements;
(j) increase of the productive capacity of land by addition to it of
special variety of soil;
(k) construction of permanent farm houses, cattle sheds and sheds
for processing of agricultural produce at any stage;
(l) purchase of machinery for crushing sugarcane, manufacturing
gur or khandsari or sugar and other like purposes;
8 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
(m) purchase of land under the Himachal Pradesh Holdings
(Consolidation and Prevention of Fragmentation) Act, 1971
(20 of 1971);
(n) such other purposes as the Board may, from time to time with
the approval of the Registrar, declare to be improvement or
productive purpose for the purposes of this Act.
4. Institution of 1[Agriculture and Rural Development Bank]s.- (1)
There shall be a State Bank for the State of Himachal Pradesh, and as many
2[Primary Agriculture and Rural Development Bank]s or branches as may be
deemed necessary.
(2) A reference to Land Mortgage Bank in any law, or instrument, for
the time being in force in the State shall, with effect from the commencement
of this Act, be construed as a reference to a 3[Agriculture and Rural
Development Bank] within the meaning of this Act.
(3) With effect from the commencement of this Act, and until such
time as the names of the Land Mortgage Banks and societies functioning in
the State at the commencement of this Act are changed into 4[Agriculture and
Rural Development Bank], all acts done by them or mortgages and other
documents executed by them, or in their favour, and all suits and other
proceedings filed by or against them shall be deemed to have been done,
executed or filed, as the case may be, by or against them as 5[Agriculture and
Rural Development Bank].
CHAPTER-III
TRUSTEES
5. Appointment of trustee.- (i) The Registrar or any other person
appointed by the State Government in this behalf shall be the trustee for the
purposes of securing the fulfilment of the obligations of the State Bank to the
holders of debentures issued by the Board.
(ii) The trustee shall be a corporation sole, by the name of the trustee
for the debentures in respect of which he is appointed, and shall have
perpetual succession and a common seal, and in his corporate name may sue
and be sued.
1. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
2. Substituted for the words "Primary Land Development Bank" vide H.P. Act No.
16 of 1987, effective from 16th November, 1987.
3. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
4. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
5. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 9
DEVELOPMENT BANKS ACT, 1979
6. Vesting of property in trustee.- 1[The Gehan created or mortgage
executed] and other assets deemed to have been transferred by the 2[Primary
Agriculture and Rural Development Bank] to the State Bank under section 38
shall vest in the trustee, from the date of such transfer.
7. Debenture holders to have first charge on 3[Gehan, mortgages,
hypothecations] etc.- The holders of the debentures shall have a floating
charge on-
(i) all such 4[Gehan, mortgages, hypothecations] and assets;
(ii) the amount paid under such 5[Gehan, mortgages, hypothecations]
hypothecations] and remaining in the hands of the State Bank or
of the trustee; and
(iii) the other properties of the State Bank.
8. Powers and functions of the trustee.- The powers and functions
of the trustee shall be governed by the provisions of the Act and by the
instrument of trust executed between the State Bank and the trustee, as
modified from time to time by mutual agreement between the State Bank and
the trustee.
CHAPTER-IV
DEBENTURES
9. Issue of debentures by the Board.- 6[(1)] With the previous
sanction of the trustee and of the State Government, the State Bank may issue
debentures of one or more denominations for such periods as it may deem
expedient on the security of the 7[Gehan or mortgage or hypothecation held or
or mortgages, charges or hypothecation partly held or partly to be acquired]
and other assets transferred or deemed under the provisions of section 38 to
have been transferred by the 8[Primary Agriculture and Rural Development
Banks] to the State Bank or on the security of all or any other assets and
properties of the State Bank and also against the 9[Gehan or mortgages or
1. Substituted for the words "The mortgages" vide H.P. Act No 16 of 1987, effective
from 16th November, 1987.
2. Substituted for the words "Primary Land Development Bank" vide H.P. Act No.
16 of 1987, effective from 16th November, 1987.
3. Substituted for the word "mortgages" vide H.P. Act No. 16 of 1987, effective from
16th November, 1987.
4. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
5. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
6. Renumbered vide H.P. Act No. 16 of 1987, effective from 16th November, 1987.
7. Substituted for the word "mortgages" Act No. 16 of 1987, effective from 16th
November, 1987.
8. Substituted for the words "Primary Land Development Banks" vide H.P. Act No.
16 of 1987, effective from 16th November, 1987.
9. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
10 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
hypothecation] which are to be acquired or have been deemed to be acquired
by the State Bank.
1[(2) Notwithstanding anything contained in sub-section (1), in
respect of loans guaranteed by the Government and guaranteed to any person
or to any body of persons, whether incorporated or not and whether or not
established by or under any law for the time being in force, if such a body is
approved by the Government, the Board may, with the prior permission of the
trustees, issue debentures, on the strength of such Government guarantee and
without the security of Gehan or mortgages or hypothecation and other assets,
of one or more denominations, for such periods as it may deem expedient and
subject to such conditions as the Government may think fit to impose].
10. Redeemable period of debentures.- Such debentures may
contain a term fixing a period of not exceeding 30 years from the date of issue
during which they shall be irredeemable, or reserving to the Board the right to
call in any time any of the debentures in advance of the date fixed for
redemption, after giving, to the debenture-holder concerned, not less than
three months' notice in writing.
11. Maximum limit of debentures.- The total amount due on
debentures issued by the Board and outstanding at any time shall not exceed,-
(a) where debentures are issued against 2[Gehan, mortgages or
hypothecation] held, the aggregate of,-
(i) the amounts due on the 3[Gehan, mortgages or
hypothecation];
(ii) the value of the properties and other assets transferred
under section 38 by the 4[Primary Agriculture and Rural
Development Banks] to the State Bank and subsisting at
such time; and
(iii) the amounts paid under the 5[Gehan, mortgages or
hypothecation] aforesaid and the unsecured amounts
remaining in the hands of the State Bank or the trustee;
(b) where the debentures are issued otherwise than on 6[Gehan,
mortgages or hypothecation] held, the total amount as
1. Sub-section (2) inserted vide H.P. Act No. 16 of 1987, effective from 16th
November, 1987.
2. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
3. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
4. Substituted for the words "Primary Land Development Banks" vide H.P. Act No
16 of 1987, effective from 16th November, 1987.
5. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
6. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 11
DEVELOPMENT BANKS ACT, 1979
calculated under clause (a) increased by such portion of the
amount obtained on the debentures as is not covered by a
1[Gehan, mortgages or hypothecation].
2[11-A. Power to borrow money by issue of bonds or by way of
loans.- (1) Notwithstanding anything contained in the Himachal Pradesh Co-
operative Societies Act, 1968 (3 of 1969) the Board may, with the prior
approval of the Government and subject to the regulations made under this
Act, borrow money by issue of bonds:
Provided that the issue of the bonds shall be in conformity with such
directions or instructions as may be issued by the Reserve Bank of India or the
National Bank for Agriculture and Rural Development from time to time.
(2) The bonds shall be in the form of promissory notes and shall be
repayable on the expiry of such period or periods from the date of issue
thereof as may be approved by the Reserve Bank of India or the National
Bank for Agriculture and Rural Development:
Provided that the Board may repay the amount due under the bonds at
any time before the period or periods so fixed, after issuing a notice in such
manner as the Board may direct in that behalf to the holders of the bonds.
(3) Notwithstanding anything contained in the Himachal Pradesh Co-
operative Societies Act, 1968 (3 of 1969), the Board may borrow money by
way of loans from the Government, the National Bank for Agriculture and
Rural Development, the Reserve Bank of India or such other financial
institutions as may be approved by the trustee].
3[12. Charge on movable or immovable property of the borrower
for amounts borrowed.- (1) Notwithstanding anything contained in the
Himachal Pradesh Co-operative Societies Act, 1968 (3 of 1969) or in any
other law for the time being in force, any person owning any land or having
interest in any land as tenant or occupier or owning any other movable or
immovable property who applies to the Agriculture and Rural Development
Bank for a loan, shall make a declaration in the prescribed form creating a
Gehan or mortgage or hypothecation in favour of the Agriculture and Rural
Development Bank on the land or other movable or immovable property or
interest therein or any movable property or movable assets to be acquired with
the loan, specified in the declaration, for the repayment of the loan or advance
granted or to be granted to him by the Agriculture and Rural Development
Bank, together with interest on such amount of the loan or advance and
expressly reserving in favour of the Agriculture and Rural Development Bank
a right of sale without intervention of court, in case of default.
1. Substituted for the word "mortgages" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
2. Section 11-A inserted vide H.P. Act No 16 of 1987, effective from 16th November,
1987.
3. Section 12 substituted vide H.P. Act No, 16 of 1987, effective from 16 November,
1987.
12 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
(2) A declaration under sub-section (1) may be varied or cancelled at
any time by the member with the prior approval of the Agriculture and Rural
Development Bank.
(3) No land or other movable or immovable property or any movable
property or movable assets to be acquired with the loan or advance in respect
of which a declaration under sub-section (1) has been made and no part
thereof or of the interest in such land or movable or immovable property shall,
without the consent of the Agriculture and Rural Development Bank, be sold
or otherwise transferred until the entire amount of the loan or advance taken
by the member from the Agriculture and Rural Development Bank, together
with interest thereon, has been paid to the bank, and any transaction made in
contravention of this sub-section shall be null and void.
(4) Notwithstanding anything contained in the Registration Act, 1908
(16 of 1908) or any other law for the time being in force, it shall not be
necessary to register any gehan or mortgage or hypothecation created or
executed in favour of the Agriculture and Rural Development Bank; provided
the Agriculture and Rural Development Bank sends, within such time and in
such manner as may be prescribed, a copy of the declaration of instrument
whereby the gehan or mortgage or hypothecation has been created or executed
for the purpose of securing repayment of the loan, to the registering officer
within the local limits of whose jurisdiction the whole or any part of the
property to which the gehan or mortgage or hypothecation relates is situated.
(5) On receipt of the copy of the declaration or instrument sent under
sub-section (4), the registering officer shall file a copy or copies thereof, as
the case may be, in Book No. 1, referred to in section 51 of the Registration
Act, 1908 (16 of 1908) and thereupon, such gehan or mortgage or
hypothecation shall be deemed to create an interest in the property to which
the declaration or instrument relates and shall constitute notice to any one
dealing with the said property.
(6) Any person who makes any false statement in a declaration under
sub-section (1) shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to two thousand rupees,
or with both.]
1[12-A. Applicant for loan from the Agriculture and Rural
Development Bank to furnish declaration.- (1) Every person who applies
for a loan from the Agriculture and Rural Development Bank shall make a
declaration in the prescribed form before an officer specified by the Registrar
in this behalf that the movable or immovable property on which the gehan or
mortgage or hypothecation is created as security for the loan is free from
encumbrances, that he is in actual possession thereof and that he has the right
to create the Gehan or mortgage or hypothecation, as the case may be, thereon
in favour of the Agriculture and Rural Development Bank.
1. Section 12-A. inserted vide H. P. Act No. 16 of 1987, effective from 16th
November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 13
DEVELOPMENT BANKS ACT, 1979
(2) Notwithstanding anything contained in any law for the time being
in force, where a declaration under sub-section (1) in respect of any movable
or immovable property is false or defective, the Agriculture and Rural
Development Bank shall, subject to the provisions of section 38, have a first
charge on all other movable and immovable properties of the applicant, and
all such properties shall be deemed to have been included in the gehan created
or mortgage or hypothecation executed by the applicant as security for the
loan granted to him by the Agriculture and Rural Development Bank.
(3) Any person, who makes a false declaration under sub-section (1)
or makes any statement which is false in any such declaration shall be
punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to two thousand rupees, or with both.
(4) The amount of loan that may be sanctioned on the basis of a
declaration made under sub-section (1) shall be subject to such limit as may
be prescribed.]
13. Guarantee by State Government of principal and interest on
debentures issued under section 9.- The principal of, and interest on, the
debentures issued under section 9 1[or bonds issued or loans raised under
section 11-A, to such a maximum amount as may be fixed by the Government
from time to time,] shall carry the guarantee of State Government subject to
such conditions as it may deem fit to impose.
14. Power of Board to make regulations.- The Board may, subject
to the approval of the trustee and of the State Government, make regulations
not inconsistent with the provisions of this Chapter :-
(i) for fixing the period of debentures and the rate of interest
payable thereon;
(ii) for calling in debentures after giving notice to debenture-
holders;
(iii) for the issue of new debentures in place of debentures damaged
or destroyed;
(iv) for converting one class of debentures into another bearing a
different rate of interest; and
(v) generally for carrying out the provisions of this Chapter.
2[14-A-Security for loans.- (1) Subject to the provisions of this Act,
the Agriculture and Rural Development Bank and the Primary Agriculture and
Rural Development Bank may advance loans to individuals and institutions on
the security of lands and other fixed assets or of assets acquired by the loans
borrowed which have been hypothecated to the Agriculture and Rural,
Development Bank, as or the Primary Agriculture Rural Development Bank
1. Added vide H.P. Act No. 16 of 1987, effective from 16th November, 1987.
2. Sections 14-A, 14-B, 14-C inserted vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
14 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
as the case may be, on the basis of principles of valuation approved by the
Registrar :
Provided that the Agriculture and Rural Development Bank and the
Primary Agriculture and Rural Development Bank may, for such purposes and
for such periods as may be specified by the Government by special or general
order, advance loans without such security of land but on the specific
guarantee of the Government for the repayment of the principal and payment
of interest thereon:
Provided further that the Agriculture and Rural Development Bank
and the Primary Agriculture and Rural Development Bank may, with the
previous approval of the Registrar and subject to such restrictions and
limitations as may be prescribed, advance loans for such purposes and for
such periods as may be determined by the Board.
(2) Notwithstanding anything contained in any other law for the time
being in force, the Agriculture and Rural Development Bank or a Primary
Agriculture and Rural Development Bank may, under any land development
scheme prepared and approved under the provisions of the Himachal Pradesh
Land Development Act, 1973 (14 of 1973) or under this Act, grant or advance
loans to any person or a group of persons with or without security of land for
carrying out the work specified in the scheme, subject to such terms and
conditions as are agreed upon between the Government and the Agriculture
and Rural Development Bank or the Primary Agriculture and Rural
Development Bank, as the case may be.
(3) All loans and advances granted and all amounts payable to, or
recoverable by, the Agriculture and Rural Development Bank or the Primary
Agriculture and Rural Development Bank shall, in case of default of payment,
in addition to other remedies available to the Banks, be recoverable in the
same manner as if they are arrears of public revenue due on land.
(4) All loans and advances granted by the Agriculture and Rural
Development Bank under this section shall be granted inconformity with the
directions or instructions as may be issued by the National Bank for
Agriculture and Rural Development established under section 3 of the
National Bank for Agriculture and Rural Development Act, 1981 (64 of
1981).
14-B. Money borrowed for development of land.- Where the
Agriculture and Rural Development Bank has granted a loan for improvement
of any land situated in any area or areas covered by any specific programme
of agricultural development, to a person appearing to the Agriculture and
Rural Development Bank to have title to the said land or to be in lawful
possession thereof, and the money has been either in whole or in part utilised
for such improvement, any person acquiring title to such land on ground of
superior title or on any other ground shall be liable to repay to the Agriculture
and Rural Development Bank so much of the loan as has been utilised for the
improvement of the land together with interest thereon.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 15
DEVELOPMENT BANKS ACT, 1979
14-C. Loans to persons having restricted rights of transfer.- (1)
Notwithstanding anything contained in any law, custom or usage, where the
Agriculture and Rural Development Bank makes a loan or an advance to a
member belonging to a Scheduled Caste or Scheduled Tribe or to any person
having restricted rights of alienation over immovable property, it shall be
competent to such member or person to create a Gehan or mortgage or
hypothecation on such property in favour of such Agriculture and Rural
Development Bank as security for such loan.
(2) The Agriculture and Rural Development Bank shall, in the event
of default by the member or person and without prejudice to any other remedy
available to it either under a law or contract or otherwise, be entitled to take
possession of such property and lease the same to any person belonging to the
same caste or tribe as the member belongs in case the defaulter is a member of
a Scheduled Caste or Scheduled Tribe and in any other case to any person and
appropriate the net receipts from the lease in repayment of the moneys due to
it; and the member or person shall not be entitled to recover possession of
such property until the amount due to the Agriculture and Rural Development
Bank has been repaid in full.]
CHAPTER-V
GRANT OF LOANS-MODE THEREOF
15. Mode of dealing with applications for loan.- (1) When an
application for loan is made for any of the purposes mentioned in section 3, a
public notice shall be given of the application in such a manner as may be
prescribed calling upon all persons interested to present their objections, if
any, in person, at a time and place fixed therein. The State Government may,
from time to time, prescribe the officer by whom such public notice shall be
given and the manner in which the objections shall be heard and disposed of.
(2) The prescribed officer shall consider every objection submitted
under sub-section (1) and make an order in writing either upholding or over
ruling it :
Provided that when the question raised by an objection is in the
opinion of the officer, one of such a nature that it cannot satisfactorily be
decided except by a civil court he shall postpone the proceedings on the
application until the question has been so decided.
(3) A notice under sub-section (1), published in the manner
prescribed, shall, for the purpose of this Act, be deemed to be proper notice to
all persons having or claiming interest in the land to be improved, redeemed,
purchased or offered as security for the loans under this Act.
(4) If any person interested, fails to appear to present his objections as
required under sub-section (1), the questions at issue will be decided in his
absence and such person will have no claim whatsoever against the property
for which the loan applied for will be sanctioned till such time as the loan
together with interest thereon or any other dues arising out of the loan are paid
in full by the loanee.
16 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
(5) Notwithstanding anything contained in any other law for the time
being in force in the State, a 1[Agriculture and Rural Development Bank] shall
have the right to obtain free of charge copies of Farad, Jamabandi, Khasra
Girdawari, 5 years sales statistics and encumbrance certificate under section
57, prescribed in Appendix "I" of Article-II of the Indian Registration Act,
1908 (16 of 1908) on the lines to be specified by the Registrar. These copies
shall, as far as possible, be supplied by the concerned officers of the Revenue
Department within 15 days from the date of request by the 2[Agriculture Rural
and Development Bank.]
16. Order granting loan conclusive of certain matters.- A written
order by the 3[Agriculture and Rural Development Bank], or committees
authorised under the bye-laws of the Bank to make loans for all or any of the
purposes specified in section 3, granting, either before or after the
commencement of this Act, a loan to or with the consent of a person
mentioned therein, for the purpose of carrying out the work specified therein
for the benefit of the land or for the productive purposes specified therein,
shall for the purposes of this Act be conclusive of the following matters, that
is to say :-
(a) that the work described or the purpose for which the loan is
granted, is an improvement or productive purpose, as the case
may be, within the meaning of section 3;
(b) that the person had at the date of the order a right to make such
an improvement, or to incur expenditure for productive
purpose, as the case may be; and
(c) that the improvement is one benefiting the land specified and
productive purposes concerns the land offered in security, or
any part thereof as may be relevant.
17. The 4[Agriculture and Rural Development Bank] to have prior
charge on land.- 5[1] Notwithstanding anything contained in any law for the
time being in force in the State, where a 6[Gehan created or mortgage or
hypothecation executed] in favour of 7[Agriculture and Rural Development
Bank] is in respect of land in which a tenant purchaser or tenant has an
1. Substituted for the words "Land Development Bank" vide H. P. Act No. 16 of
1986, effective from 16th November, 1987.
2. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
3. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
4. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
5. Section 17 renumbered as 17(1) vide H.P. Act No. 16 of 1987, effective from 16th
November, 1987.
6. Substituted for the word "mortgage" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
7 Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL 17
DEVELOPMENT BANKS ACT, 1979
interest, the 1[Gehan created or mortgage or hypothecation executed] may be
against, the security of such interest, and the rights of the 2[Agriculture and
Rural Development Bank] shall not be affected by the failure of the tenant
purchaser or tenant to comply with the requirements of such law and the sale
of the land and his interest therein under such law shall be subject to the prior
charge of the 3[Agriculture and Rural Development Bank].
4[(2) Notwithstanding anything contained in any law for the time
being in force, a gehan created or mortgage or hypothecation executed in
favour of the Agriculture and Rural Development Bank or a Primary
Agriculture and Rural Development Bank shall take precedence over any
attachment or equitable mortgage over the properties where, after publication
of a notice in the prescribed form, the claim or interest under such attachment
or equitable mortgage has not been notified to such bank within the time
prescribed in the said notice.]
18. 5[ x x x x x x x x ]
19. Section 8 of Act XXXII of 1956 to apply to 6[Gehan, mortgage
or hypothecation] to 7[Agriculture and Rural Development Bank] subject
subject to modifications.- Section 8 of the Hindu Minority and Guardianship
Act, 1956 (32 of 1956) shall apply to 8[Gehan, mortgage or hypothecation] in
favour of the 9[Agriculture and Rural Development Bank] subject to
modifications that reference to the court therein shall be construed as
reference to the Collector of the district in which the property to be
10[involved] is situated or his nominee and the appeal against the order of the
Collector or his nominee shall lie to the Commissioner.
20. Restriction on lease.- (1) Notwithstanding anything contained in
the Transfer of Property Act, 1882 (4 of 1882), or any other law for the time
1. Substituted for the word "mortgage" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
2. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
3. Substituted for the words "Land Development Bank" vide H.P. Act No. 16 of
1987, effective from 16th November, 1987.
4. Sub-section (2) inserted vide H.P. Act No 16 of 1987, effective from 16th
November, 1987.
5. Section 18 omitted vide H.P. Act No 16 of 1987, effective from 16th November,
1987.
6. Substituted for the word "mortgage" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
7. Substituted for the words "Land Development Bank" vide H.P. Act No 16 of 1987,
effective from 16th November, 1987.
8. Substituted for the word "mortgage" vide H.P. Act No 16 of 1987, effective from
16th November, 1987.
9. Substituted for the words "Land Development Bank" vide H.P. Act No 16 of 1987,
effective from 16th November, 1987.
10. Substituted for the words "mortgaged" vide H.P. Act No. 16 of 1987, effective
from 16th November, 1987.
18 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL
DEVELOPMENT BANKS ACT, 1979
being in force, no mortgagor of property mortgaged to an 1[Agriculture and
Rural Development Bank] shall except with the prior consent in writing of the
Bank and subject to such terms and conditions as the Bank may impose, lease
or create any tenancy rights on any such property:
Provided that, if the lease is given or the tenancy is created with the
prior consent of the Bank, the rights of the Bank shall also be enforceable
against the purchaser, the lessee or the tenant, as the case may be, as if he
himself were a mortgagor.
(2) Where land, mortgaged with possession to 2[Agriculture and Rural
Rural Development Bank] is in actual possession of tenant, the mortgagor or
the 3[Agriculture and Rural Development Bank] shall give notice to the tenant
tenant to pay rent to the 4[Agriculture and Rural Development Bank] during
the currency of the lease and the mortgage and on such notice being given, the
tenant shall be deemed to have attorned to the 5[Agriculture and Rural
Development Bank].
6[21. Power of the Agriculture and Rural Development Bank to
receive money and grant valid discharge.- Notwithstanding that a Gehan
created or mortgage or hypothecation executed in favour of the Agriculture
and Rural Development Bank has been transferred, or is deemed under the
provisions of section 38, to have been transferred, to the Agriculture and
Rural Development Bank,-
(a) all moneyExcerpt shown. Open the full act in Lexace.