The ODISHA AGRICULTURAL CREDIT OPERATIONS AND MISCELLANEOUS PROVISIONS (BANKS) ACT, 1975

'ITHE ORISSA AGRICULTURAL CREDm OPERA- 
TIONS AND MISCELLANEOUS PROVISIONS 
(BANKS) ACT, 19'751 
[ Receivrd fAe assent of the Presidefit or1 fhe 24t1i 
October 1975,jrst p?cblisheCI ilt arl extra- 
orditlary issue nj' Oriss a Gazette, 
(luted //re 12th Novcrnber 1975 1 
AN ACT TO MAKE PROVISIONS TO FACILITATE ADEQUATE 
FLOW OF CREDIT FOR AGRICULTURAL PRODUC- 
TION AND DEVELOPMENT THROUGH BANKS 
AND OTHER 1 NSTITUTIONAL CREDIT 
AGENCIES AND FOR MATTERS 
CONNECTED THEREWITH 
OR INCIDENTAL 
THERETO 
Be it enacted by the Legislature of the State of 
Orissa in the Twecty-sixth Year of the Republic of 
India, as follows :- 
PRELlMlNARY 
I 
! 
1. (1) This Act may be called the Orissa Agri- z&;ttEi 
cultural Credit Operations and Miscetlaneous ,,-u,,. 
Provisions (Banks) Act; 1-975. mcnt. ! 
(2) It shall extend to the whole of the State of 
Orissa. 
(3) Tt shall come into force on such date as the 
State Government may, by notification, appoint in 
this behalf and different dates may be appointed for 
different provisions of this Act and for daerent areas 
of the State. 
2. In this Act, unless the context otherwise Dcliflitioas 
requires,- 
(a) '' agriculture " shall include making land 
fit for cultivation, cuItivation of land, 
improvement of land including develop - 
ment of sources of irrigation, raising and 
1. For Statement of Objccls and Reasons, see Orissa C~zette, Extra- 
ordinary, dated thc 19th Marcb 1975 (No. 574). 

8 14 THE ORrssA AGRICULTURAL CREDIT OPERATIONS AND [Or. Act 
harvesting of crops, horticulture, forestry, 
plat~tiog and farming and cattle breeding, 
animal husbandry, dairy farming, seed 
farming, pisciculture, apicu! ture, sericulturc, 
piggery, poultry farming and such other 
activities as are generally carried on by 
agriculturists, dairy farmers, cattle 
breeders, poultr J farmers and G ther cate- 
gories of persfins engaged in similar acti- 
vities including marketing of agriculiural 
products, their storage and transport and 
the acquisition of implements and machi- 
nery in connection with any such activity 
and the expression " agricultural purpose" 
shall be const rued accordingly; 
(b) "agriculturist" means a person who earns 
income from agriculture; 
(c) "Asro-Industries Corporation" means 
a company or other body corporate, one of 
the principal objectives of which is to under- 
take activities connected with or intended 
for the development of agriculture and 
not less than uty-one per cent of the paid 
up share capital of which is held by the 
Central Government or by any State 
Government or Governments or partly by 
thecentral a~veanrnent and partly by one 
or more State Governments; 
(i) a banking company within the meaning 
of the BankJng Regulation Act, 19491 10 of1949 
(ii) the State Bank of India constituted -. under the State Bank of India Act, 23 01 195s 
1955; 
(iii) a subsidiary Bank within the meaning 
of the State Bank of India (Subsi- 
diary Ranks) ct, 1959; 3s of 1959 
(iv) a corresponding new bank within the 
meaning of the Banking Companies 
Acquisition and Transfer of Under- , ,, ,,,, 
takings) Act, 1970; 
(v) Agricultural Refinance Corporation 
established under the Agricultural 
Refinance Corporation Act, 1963; 1.0 or 1963 
(vi) the Agro-In dustries Corporation as 
defined in clause (c); 
Oriw Act 
2 of 1963. 
(l!ii) the Agricultural Finance Corporation 
Litui! ed , a company incorporated 
under the Companies Act, 1956; and 
(stiii) any othe r financial institution notified 
by the State Government as ra b:rok 
for the purposes of this Act; 
(e) "co-operative saciety" means a co-opera- 
live society registered or deemed to be 
registered under ?he Orissa Co-operative 
Societies Act, 1962, the object of which is 
to provide financial assistance as defined 
in clause (f) to its rnernbe~ s and includes 
st Iad devtIopment bmk as defined in 
that Act; 
(!) ''financial assistance" for the purpose of 
this Act, means assistance granted by way 
of loans, advznces, guarantee or otherwise 
for agricultural purpose; 
(g) "Registrar of Co-operative Societies" 
means, the person appointed as such by 
the State Government under section 3 
of the Orissa Go-operative Societies Act, 
1962. 
RIGHTS OF AGRICULTURISTS TO CREATE 
CHARGE O'N LAND AND INTERESTS 
THEREIN IN FAVOUR OF BANKS 
3. (1) It shall be lawful foi an agriculturist to ~~~;;zl~f 
create a charge on the movable property owned by crop md 
hiin or on the crops raised by him, standing or Ei:;r~s; 
o thenvise, or other produce from Ia nd cultiva tcd by in favour 
him, to the extent of his interest therein, in favour Of bariks- 
of a bank to secure financial assistance. 
(2) Notwithstanding anything to the contrary 
Orissa Act 2 in the Orissa Co-operative Societies Act, 1962 or in 
0f1963. any other lawfor the tinlebeine;inforca,incases 
where the financial assistance given by a bonk is prior in point of time to that of the financial 
assistance extended by a Co-opera Live Society, no 
charge it1 respeci of such finallcia1 assistance extcnded 
hp the Co-operat ive Society shall have priority over n 
&a*-gcd on the crops raised by him, standing or 
otherwise, or on any other movable property in respect 
of any financial assistance given to hiin by a bank. 
Creation of 
chorgc on 4. (1) W11er.e an agriculturist creatcs a c1~11.gi: 
land ill 011 Iartd, or ally other itnmovable pl-opcl'ty i:)flich Ill: 
f ( OWIIS 01' in which hc I~as nn i~~terest in rzspcct oi' a hank by n 
declnrfitiun. arly fi nancirtl assistance given to him by il bank, hf: 
shall make a declaration in the form sei out in the 
sclledule hereto or as near thereto as circurns ta ilccs 
permit, declaring that thereby he creates, ill fauoul- 
of the bank, a charge on such lsncl or his interest 
therein, or other im.~novable property, as the case 
may be, to secure the financial assistahce 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 and any such vari n t' lon 
shall take effect from such date on which the 
variation, if it had been an original declaration., would 
have effect under section 7. 
EHARGES AND MORTGAGES IN FAVOUR 
OF BANKS AND THEIR PRIORITIES 
,,,,, ., 5. Notwithstanding anything to the contrary con- orissa AC~ 
disability in tained in the Orissa Co-operative Societies Act, 1962 hf 
crcatio~~ of 
charge and DT in any other law- for the time being in force and 
rnortgngcs. notjvithstanding that any land- or interest therein 
stands already charged or mortgaged in favour of 
a Co-operative Society, it shall be lawful for arl 
agricult~zrist to create a charge or mortgage on sucl) 
land or interest therein in favour of a bank as 
security for any financial assistance given to the 
agriculturist by that bank, 
Priority of 6. (I) Notwithstanding anything to the contrary 
charflcs and 
morl~36CS in any law for the the behg in force,- 
in hvour of 
Govcrnrncnt 
,r n CO- 
.petntavc 
(a) no charge or mortgage created on any land 
ocicty. or interest thereh, after the comence- 
ment of this Act, in favour of Govern- 
ment in respect of a loan under the Land 
Improvenlent Loans Act, 1883 or the 
Agriculturist's Loans Act, 158d or in favour 
of a Co-opcrative Society ilz respect of a 
Ioan granted by such society, shall have 
priority over a charge or mortgage on 
such land or intercst created by an agri- 
culturist in favour of a bank as security 
for financial assistance given to .the 
agriculturist by the bank after the com- 
mencemetlt of this Act and prior to the 
charge or mortgage in favour of Govern- 
ment or the Co-operative Society, as the 
case may be; and 
i~. .-;.! (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 
- I 
over such land or interest in favour of 
any. person other than Government, a 
. .' 
co-operathe society or any other bank, 
' . prior. to the date on which the charge or 
L. 
. . 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 Government, 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 Government, co-operative 
society or the bank or banks by way of tcnn loan for 
development purposes shall have priority over the 
other charges or mortgages created in favotrr of 
Government, co-operativc society or any of the banks, 
provided prior notice of any sucl~ financia1 assistance 
by way of term loan for developn~ent purpose had 
been given to such Govermne~lt, co-opera t ive society 
er bank and such Governlent, co-opera f ive society 
or.bank has concurred in such financial assistance, 
abd where more ,than one such cl~arge or mortgag 
is as security for financial assistance given by way 
of term loan, the charges or ~nortgages by way of 
security for term loan for development purposes will 
rank for priority in zcc~rdance with the dates of 
their creation. 
Explar.lario!l,--For the purposes of tlds section, 
"term loail for development purpose" shall mean 
financial assistance which would generally lead to 
improvement of agriculture or building up of assets 
in agricult~rre, but shall not include financial assistance 
for meeting wcrIciqg capital expenses, seasonal 
agricultural operations and marketing of crops. 
(3) Nothing in this section shall apply to 
borrowings only from one or more co-operative 
societies. 
Registration 7. Notwithstanding anything contained in the 
.r char= Registration Act, 1908, a charge in respect of which Id or 1908 
and marl- a decIaration has been made under sub-section (1) gage in 
favour of section 4, or in respect of which a variation has 
banks. been made under sub-section (2) of that section, or 
a mortgage executed by an agriculturist in favour 
of a bank in respect of financial assistance given by 
that bank, shall be deemed to have, been duly 
registered in accordance with the provisions of that 
Act, with effect from the date of such charge, varia- 
tion or mortgage, as the case may be, provided that 
the bank sends to the SuGRegistrar within the local 
limits of whose jurisdiction the whole or anypqrt of 
the property charged or mortgaged is situate, withh 
a period of thirty days, by registered post with 
acknowledgement due, two copies of the .document 
creating such charge, variation or mortgage duly 
certified to be true copies by an employee of the 
bank authorised to sip on its behalf. 
s strict ions 8. (1) Notwithstandiilg anything cantaified in 
on creation any law for the time being in force, an agriculturist of tenancy ,, ,, who has availed hjrnself of financial assisfane from 
cu~tucist a bank by creating a charge or mortgage on land or borrower. interest therein, shall not, SO long as the hancial 
assistance continues to be outstanding, lease out or 
create any tenancy rights on such land or interest 
without prior permission in writing of the bank. 
(2) Any lease granted or tenancy rights created in 
contravention of this zzction shaJl be void, 
ARRANGEMENTS FOR RECOVERY OF 
DUES BY BANKS 
9. Notllhg in ally law shall prevcllt in anyRemova10f 
manner a bank from causiilg any land, crop, movables bar to attach- 
ment and 
or any interest thereill chsrged or mortgaged to it saIc by 
by an agriculturist to seclx-c any f nancial assistance, z;7 Of 
to be attached and sold through a civil court and 
applying the proceeds of such sale towards all moneys 
due to it from tht agriculturist including the costs 
and expenses as may be awarded by the court. 
10. (1) An officer or" the State Government Rccovery of 
ducs of a notified by them .as the prescribed authority for the bankthrough 
of this section may, on the application of a a prescribed 
c9 and after such enquiry as he deems proper, make '' 
an order on any agriculturist or his heir or legal 
representative, directing the payment of any sum due 
to the bank on account of fmancial assistance availed 
of by the agriculturist, by the sale of any land or any 
interest therein upon which the payment of such 
money is charged or mortgaged: 
Provided that no order shall be made by the 
prescribed authority under this section unless the 
agriculturist -or the heir or legal representative of the 
agriculturist, as the case may be, has bee0 served with a 
.notice by the prescribed authority calling upon him 
to pay the amounts due. 
(2) Every order passed by the prescribed autho- 
rity under sub-section (I) shall be deemed to be a 
decree of a civil co1u.t and shall be executed in the 
same manner as a decree of such court. 
(3) Nothing in this section shall debar a bank 
from see& to enforce its rights in any other manner 
open to it under any other law for the time being in 
force. 
11. (1) Notwithstanding anytltling contained in of a 
any law for the time being in force, a bank shall have Bank to 
power to itself, acquire agriculhd land or interest ncquice and 
dispose of 
therein or any other immovable property which has immovable 
charged or mortgaged to it by an agriculturist PrQ~rtY. 
in respect of any financial assistallce availed of by 
LII, provided the said Iand or interest thcrein cr any 
other .immovabie proye rty has bcen sought to bc sold 
hy public auctiorl and no person has ofrcrcd to pur- 
chase it ibr a prhicc which is sufficient to pay to the 
bank the money due to it. 
(2) A bank wfiicl-i zcquires land or interest 
therein or any o [her unmovable property in exercise 
of the power vested in it under sub-section (I), shall 
disposc it of by sale, within a period to be specified 
by the Statc Government in this behalf. 
(3) If the bank has to lease out any land acquired 
by it under sub-section (I), pending sale thereof as 
indicated in sub-section (2), the period of lease shall 
not excced one year at a time and thc lessee shaU not 
acquire any interest in that property, notwithstanding 
any provision to the contrary in any other law far the 
time being in force. I. 
(4) A sale by a bank of land or interest therein 
in terms of this section shall be subjcct to the provi- 
sions of any law in force which provides for restric- 
tions on purchase of land by non-agriculturists or 
by a person not belonging to a Scheduled Tribe or 
Scheduled Caste or for restrictions against fragmenta- 
tion of land or which provides for a ceiling on 
acquisition of land. 
Exemption 
to banks 12, Nothing in any law for the time being in 
rmm ratric- force placing a ceiling or limit on the holding. of land 
tiOfi acquisition on shall apply to a bank acquiring land in terms, of section 
ofland in 11 and holding such land till such time the bank is in a 
position to sell the Iand in the manner provided in ceiling. that section or otherwise, at a price which is adequate 
to cover its dues. 
CUPrnR V 
FXNANClNG OF CO-OPERATIVE SOCTETIES 
BY BANKS 
13. Notwithstanding anything contained in the . , ,. . Banks cEigi 
bie ro IYCCO~C Or j~~a Co-operative Societies Act, 1962 or in any law Orissa Act 2 
member of of 1963 
a co-opera- for the tinle being in force, it shall be lawful for a 
tiva society. bank to become a member of a Co-operative Society. 
Powcr of 14. Notwithst anding anything contained in the 
m-operativc Ori~~a jSo-oper:rative Societies Act, 1962 it shall , be orissj Acf z Smictics to 
borrow from la\vful for any CQ-operative Society to borrow from of 1963. 
banks, a bank. .. . .. . . 
- - -* 
15. (1) A bank shall have the right to inspect the rnspcc~ion of books books of any co-operative society which has either ,fmapcra- 
applied to the bank for fi~~a~lcial assistance or is tlvc SOC~C~P 
- by a bank. indebtod to the bank on account of financial assis- 
tance granted earlier. 
(2) The inspection nlay be carried out by an 
officer or any other ~nembcr of the paid staff of the 
bank with the previous satlction in writing of the 
Registrar of Co-operative Societies. 
(3) The oEcer or ahy other member of the 
paid staff of the bank undertaking such ins- 
pection, 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-oprative 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 made to the society 
or already made to it. 
16. (1) Notwithstanding anything contained in Disputes 
between a 
, any other jaw for the time being in force, any dispute bmk ,aa 
touchb the constitution, managemeflt or thecOa~eratlve 
business of a co-operative society, between a bank society. 
financing a co-operative society and the co-operative 
society so financed, other than disputes regarding 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 of Co-operative Societies 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 the Registrar of Co-opera- 
' . . tive Societies whose decision thereon shalI be final. 
17. (1) If the Registri? of Co-operat ive Societies 2:l;z.nl of 
js satisfied that any matter referred to him or brought 
to his notice is a dispute within the meaning of section 
16, he shall decide the dispute himself or refer it for 
diposal to a nominee or a Board of nominees 
appointed by him. 
(2) VJhere any dispute is I-eferred under sub- 
section (I) for dccisjon to the ilorninsc or Board of 
nominees, the Registrar may, at any time, for reasons 
to be recorded in writing, withdraw such dispute 
from his nominee or- Board of nominees and may 
decide the dispute himself or refer it for decision to 
any other nominee of Eoard of nominees appointed 
by hin-t. 
(3) Notwithstandins anything contained in 
section 16, the Registrar may, if he thinks fit, suspend 
the proceedings in regard to any dispute if the question 
at issue between a co-operative society and a bank 
is one involviflg complicated questions of law and 
fact,. until the question has been tried by a regular 
sult rfistituted by one of the parties to the dispute 
and if any such suit is not institued, within two months 
from the order of the Registrar suspending the procee- 
dings, the Registrar shall take action as is provided 
in sub-section (1). 
P rmedure 
for hwring I8 The Registrar of Co-operative Societies 
or his nominee or Board of nominees hearing a 
dispute under section 17 shall, as far as practicable, 
decide the dispute in the manner provided in the 
Orissa Co-operative Societies Act, 1962 and the rules Odssn rn 2 of 199 bade thereunder. 
Djcisiion Of 
Registrar or 19. (1) When a dispute is referred for decision, 
his nominee the Registrar or his nominee or the Board of 
orBonrd of nominees may, after giving a reasonable opportu- nomlncrs. nity to the parties to the dispute to be heard, make an 
award on the dispute, on the expenses incurred by 
the parties to the dispute in connection with the 
proceedings, on' fees and on the expenses payable to 
the Registrar or his nominee or, as the case may be, 
the Board of nominees. 
(2) Any such award shall not be invalid merely 
on the ground that it was made after the expiry of 
the period fixed for deciding the dispute and shall, Ora Act 2 
subject to appeal, review or revision as provided of 1963. 
under the Orissa Co-operative Societies Act, 1962, be 
binding on the parties to the dispute. 
20. Every award made under section 19, shall, 
moncy if not carried out, on a certificate signed by the 
o..f ardcd . 
Registrar ,be deemed to be a decree of a Civil Court 
and' shall be executcd in the same manner as a d.eczr@ 
of such court. 
21. (1) If a co-operative society is unable to Powers of a 
Bank to pra- pay its debts to a bank from which it has borrowed, ,, 
by reason of its members defaulting in the payment dcfaultinb mcmbcrs of 
of' the-moneys due by then, the bank may direct the, Co-opera< 
comrn$tee of such society to procecd against such tivc Bdcty. 
Orirsl 2 members by taking action under the Orissa Co- 
of 1963. operative Societies Act, 1962. 
(2) If the committee of the co-operative society 
fails to proceed against its defaulting mnen~bcss within 
a period of ninety days from the date of receipt of 
such direction from the bank, the bahk itself may 
proceed against* snch defaulting members in which 
event, the provisions of the said Act- and the rules 
and bye-laws made thereunder shall apply as if all 
references to the society or its committee in the said 
Act, rules and bye-laws were references to the bask. 
(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 rnernbel-s of the co-operative 
society to the extent of their debts due to the society. 
I 22. The Registrar of Co-operative Societies Andt, PSFC- I 
shall draw the attention of the bank financing ag:uizd 
a, , co-operative society to the defects noticed in every repqrt? of 
SOc~tieS SO 
of 1963. audit or inquiry or inspection of such society b, adablc 
conducted under the provisions of the Orissa Co- to banks. 
operative Societies Act, 1962, and shall also supply 
a copy each of such audit, inquiry or inspection report 
if demanded, in writing, by the bank. 
CHAPTER VI 
MISCELLANEOUS 
23. Nofhin~ in any law for the time being in Exemption 
9 from legisla- force relating ?o money lending or agricultu&ts tions relaens 
debt relief shall apply to the financial assistance to money 
availed of by all agriculturist from a bank. lending agriculturists and 
debs relief. 
24. (1) Notwithstanding anything contained in ~ortgagcs 
any law for the t irne beitlg in force, mortgages executed exocuted Managers by 
after the commencement of this Act by the manager orjoint 
Hindu of a joint Hindu family favour of a bank for secu- ring financial assistance for an agricultural purpose 
shall be binding on every member of such joint 
Hindu family. 
824 THE ORISSA AGRICULTURAL CREDIT OPERAT~ONS AND [Or. Act 
(Sacs. 25-26) 
(2) Where a mortgage executed in favour of a 
bank is caIIed 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 maiorjtv or not1 thereof. 
the burden of proving the samezshafl lie on ihe party 
alleging it. 
Modified 25. Section 8 of the Hindu Minority and 
application Guardianship Act, 1956, shall apply to mortgages 2 ,r 1956 
of section 8 32 in favour of a bank subject to the modification that 
or 1956. 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 Iie to the Revenue Divisional Commis- 
sioner having jurisdiction. 
Power of 26, The State Government may, by notification, 
Statc make rules to provide for all or any of the matters 
Government for which provision is necessary or expedient for the 
to rnakc purpozs of giving eff'cct to the provisions of this Act. 
Declaration under section 4 (1) 
.......................................... I, ................... aged .years 
............................. residing at. being.desirous of availing myself of financial 
..................... assistance from the.. .Bank, make this declaration as required 
by section 4 (1) of the Orissa Agricultural Clredit Operations and MisceIlaneous Provisions 
............................ (Banks) Act, 1975, that I. .ownlhave interest as a tcnant 
in the land specifieg below, and I hereby create a charge on the said landlinterest in land 
in favour of the bank for securing the financial assistance which the bank may make 
and for all future assistance, if any, which the bank may make to me together with interest 
and costs and expenses thereon. 
-- 
Area 
Namc of 
Village 
-- 
Acres 
Name of 
Tafiasil 
7. 1 I4 1 
Assessment 
I Rupees 1 Paise 
I 
I 
Survey No. Boundaries 
I 
i 
Name of 
I 
I Encumbrances, if any 
Approximate 
value I 
Nature I Amount 
I 
City Survey No. 
Remarks, 
if any 
District .I- South- East West N~th- 
Hissa 
1 "' 
826 M-ORISSA AGRICULTURAL CREDIT OPERATIONS AND [Or. Act) 
43 of 1975 
(Sch. con td.) 
In witness whereof, I, Shri.. .................. ., ..... ..hcreunde set my 
hand this. ...................... .day of. .................. .in the year onc thousand 
nine hundred and.. ............................ 
Witnesses 
Signed and delivered by the above-named in the presence of t 
. (1) 
Attested by 
Forwarded to the Sub-Registrar with a request to rctain a copy of thc document in 
his ofice and recofd the particulars of the charge.. ...................... created 
in the property of the executant. . . 
................................. .. .. .Bank 
Place 
Copy to ManagerlAgent .. , ............................ .Bank. The cha rge 
crcated under the declaration is duly recorded and a copy witb necessary endorsmeut is : 
returned herewith. ! 
Sub-Regis trar 

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