The Tripura Agricultural Credit Operation Act, 1976

Tripura Act No. 9 of  1976.
THE  TRIPURATHE  TRIPURATHE  TRIPURATHE  TRIPURATHE  TRIPURA
AGRICULTURAL CREDITAGRICULTURAL CREDITAGRICULTURAL CREDITAGRICULTURAL CREDITAGRICULTURAL CREDIT
OPERATIONS ACT,1976.OPERATIONS ACT,1976.OPERATIONS ACT,1976.OPERATIONS ACT,1976.OPERATIONS ACT,1976.
Published in the
EXTRAORDINERY ISSUE OF TRIPURA GAZETTE
Agartala, Monday, May 17, 1976 A.D.
Vaishakha 27, 1898 S.E.
Government of Tripura
Law Department
No.F.2(3)-Law/Leg/76                                 Dated, Agartala, the 29th April 1976.
The following Act of the Tripura Legislative Assembly received assent of the President on the
22nd April, 1976 and is hereby published for general information.
Tripura Act  No. 9 of 1976.
THE TRIPURA AGRICULTURAL CREDIT OPERATIONS
ACT, 1976.
AN
ACT
to make provisions to facilitate adequate flow of credit for agricultural pro-
duction and development through banks and other institutional credit agen-
cies and for matters connected therewith and incidential thereto.
BE it enacted by the Legislative Assembly of Tripura in the Twenty-
seventh Year of the Republic of India as follows :--
CHAPTER 1
Preliminary
1. (1) This Act may be called the Tripura Agricualtural Credit Opera-
tions Act, 1976.
(2) It shall extend to the whole of Tripura.
(3) It shall come into force from such date as the State Government
may, by notification in the Official Gazette, appoint in this behalf and differ-
ent dates may be appointed for different provisions of the Act and for differ-
ent areas of the State.
2. In this Act, unless otherwise requires,--
(a) "agriculture" and "agricultural purpose" shall include
making land fit for cultivation, cultivation of land, improve-
ment of land including development of  sources  of  irriga-
tion, raising and harvesting of crops, horticulture, forestry,
planting and farming and cattle breading, animal husbandry,
dairy farming, seed farming, pisciculture, apiculture, seric-
ulture,  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
acquistion of implements and machinery in connection with
any such activity ;
Short title
extent and
Commence-
ment.
Definition.
2
(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
development of agriculture and not less than fifty-one
percent of the paid-up share capital of which is held by the
Central Government or by any State Government or Gov-
ernments or partly by the Central Government  and  partly
by one or more State Government ;
(d) "bank" means --
(i) a banking  company  as defined in the Banking Regulation
Act, 1949 ;
(ii) the State Bank of India constituted under the State Bank of
India Act, 1955 ;
(iii) a  Subsidiary  Bank  as  defined in the State Bank of India
(Subsidiary  Banks) Act, 1959 ;
(iv) a corresponding new bank constituted  under  the Banking
Companies (Acquisition  and  Transfer  of  Undertakings)
Act, 1970 ;
(v) any banking institution notified by the Central Government
under section 51 of the Banking Regulation Act, 1949 ;
(vi) the Agricultural Refinance Corporation constituted under
the Agricultural Refinance Corporation Act, 1963 ;
(vii) the Agro-Industries Corporation as defined in clause (c) ;
(viii) Agricultural Finance Corporation Limited, a company
incorporated under the Companies Act, 1956 ; and
(ix) any  other financial  institution  notified by the State Gov-
ernment in  the  Official Gazette as a bank for the purpose
of this Act ;
3
(e) "co-operative society" means a co-operative society regis-
tered or deemed to be registered unde the Tripura Co-
operative Societies Act,1974 the object of which is to pro-
vide financial assistance as difined in clause (f) of this
section to its  members  and  includes a co-operative land
mortgage/ development bank ; and
(f) "financial assistance" for  the purpose of  this  Act  means
assistance granted by way of loans, advances, gurantee or
otherwise for agricultural purpose.
CHAPTER--II
Rights of agriculturists to alienate land/ interest in land
in favour of banks
3. Notwithstanding anything contained in any law for the time being in
force or any custom or tradition, it shall be lawful for an agriculturist whose
rights of alienation of land or of any interest therein are restricted to alienate
the land or his interest therein, including by creation of a charge or mortgage
on such land or interest in favour of a bank or a Co-operative Society for the
purpose of obtaining financial assistance.
4. Notwithstanding anything contained in any law for the time being in
force, the State Government may, by notification in the Official Gazette,
vest any class or classes of agruculturists not having rights of alienation in
land or any interest therein, with rights of alienation including the right to
create a charge or mortgage on such land or interest in favour of a bank or a
Co-operative Society for the purpose of obtaining financial assistance with-
out any restrictions, or subject to such restructions as may be specified in the
notification.
5. (1) It shall be lawful for an agriculturist to create a charge on the
movable property owned by him or on the crops raised by him, standing or
otherwise or other produce from land cultivated by him, to the extent of his
interests therein, in favour of a bank, to secure financial assistance from that
bank, notwithstanding that he may not be owner of the land on and from
which the crop is raised.
(2) Notwithstanding anything to the contrary in the Tripura Co-
operative Societies Act, 1974, or any other law for the  time being inforce no
Definition.
Removal of
restriction
on aliena-
tion.
State Gov-
ernment
may, by no-
tification,
vest agri-
culturists
not having
a alienable
rights with
such rights.
Charge on
crop and
other mov-
able prop-
erty in fa-
vour of a
bank.
4
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 movable property in respect of any
financial assistance given to him by a bank, provided the financial assistance
made by the bank is prior in point of time to that of the financial assistance
extended by the co-operative society.
(3) A bank may distrain and sell through an official of the State Gov-
ernment, designated in this behalf by the State Government, the crop or other
produce or other movable charged to that bank to the extent of agriculturist's
interest therein and appropriate proceeds of such sale towards all moneys
due to the bank from that agriculturist.
6. Where an agriculturist creates a charge on land, or any other immov-
able 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 permit, declaring that thereby he creates, in favour of the bank
a charge on such land or his interest therein, or other 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 from such
date on which the variation, if it had been an original declaration, would
have effect under section 9.
(3) For the removal of doubts it is hereby cleared that no duty under
the Indian Stamp Act, 1899 or fee under the Registration Act, 1908 shall be
payable on a declaration referred to in this section.
CHAPTER--III
charges and mortgage in favour of banks and their priorities
7. Notwithstanding anything to the contrary contained in the Tripura
Co-operative Societies Act, 1974, or any other law for the time being in
force and notwithstanding that any land or interest therein stands already
charged or mortgaged or mortgaged to a co-operative society, it shall be law-
ful for an agriculturist to create 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.
Creation of
charge on
land in fa-
vour of a
bank by de-
claration.
Removal of
disability in
creation of
charges and
mortgages.
5
8. (1) Notwithstanding anything contained in any other law for the time
being in force, where different mortgages or charges have been executed by
an agriculturist in respect of same land both in favour of a bank and in favour
of any person then the mortgage or charge executed in favour  of a bank shall
have priority over the mortgage or charge in favour of such person irrespec-
tive of the fact whether the mortgage or charge in favour of the bank was
executed before or after the date of the mortgage or charge in favour of such
person.
Explanation.- In this sub-section the word "person" shall not include the
State Government or any co-operative society.
(2) Where in respect of the same land different mortgages or charges
have been executed by an agruculturist in favour of,--
(i) the State Government,
(ii) a co-operative society, and
(iii) one or more banks,
such mortgages or charges shall rank for priority in accordance with the
respective dates of their execution.
(3) Notwithstanding anything contained in any other law for the time
being in force, where different mortgages or charges have been executed by
an agriculturist in respect of the same land for obtaining crop loan from one
bank and a subsequent term loan from another bank then the mortgage or
charge in relation to the subsquent term loan shall have priority over the
mortgage or charge in relation to the crop loan provided the mortgage or
charge in relation to such term loan was executed with the knowledge and
consent of the bank providing the crop loan.
Explanation.- For the purpose of this section "crop loan" means a loan
advanced to an agriculturist for the purpose of finacing seasonal agricultural
operation or the marketing of crop and is recoverable within fifteen months
from the date of advancement of such loan and the words "term loan" means
a loan advanced to an agriculturist for meeting outlay relating to the
replacement or maintenance of wasting assets including machineries or for
capital investment designed to increase the crop output and is repayable within
any period exceeding fifteen months but not exceeding twenty years.
Priority of
mortgages
and charges.
6
9. (1) Notwithstanding anything contained in the Registration Act,
1908, a charge in respect of which a declaration has been made under sub-
section (1) of section 6, or in respect of which a variation has been made
under sub-section (2) of that section, or a mortgage executed by an agricul-
turist in favour of a bank in respect of financial assiatance given by the bank,
shall be deemed to have been duly registered in accordance with the provi-
sions of that Act with effect from the date of such charge, variation or mort-
gage as the case may be, provided that the bank sends to the Sub-Registrar
within the local limit of whose jurisdiction the whole or any part of the prop-
erty charged or mortgaged is situate,
within the time stipulated by the State Government for this purpose, by reg-
istered post acknowledgement  due, of the document creating such charge,
variation or mortgage duly certified to be a true copy by an employee of the
bank authorised to sign on its behalf.
(2) The Sub-Registrar receiving the declaration in respect of  a charge
or variation or a mortgage referred to in sub-section (1) shall, as immedi-
ately as practicable on receipt thereof, record, in a register to be maintained
in this behalf, the fact of the receipt of such declaration, variation or mort-
gage for registration.
10. Whenever a charge or a mortgage on land or interest therein is created
in favour of a bank by an agriculturist, the bank may give intimation to the
Tehsildar or such other revenue official as may be designated in this behalf
by the State Government, of the particulars of the charge or mortgage in its
favour.The Tehsildar or the other revenue official shall make a note of the
particulars of charge or mortgage in the Record-of-rights relating to the land
over which the charge or mortgage has been created.
11. (1) Notwihtstanding anything contained in any law for the time be-
ing in force, an agricualturist who has availed himself of financial assistance
from a bank by creating of charge or mortgage on land or interest therein,
shall not, 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 has not already leased or created
tenancy rights thereon at the time  of availing of the financial assiatance
from the bank.
(2) Any lease granted or tenancy rights created in contravention of
this section shall be void.
Registra-
tion of ch-
arge and
mortgage
in favour of
banks.
Noting of
charge or
mortgage
created in
favour of a
bank in the
Record-
of-rights.
Restric-
tions on
creation of
tenaney by
an agricul-
turist bor-
rower.
7
CHAPTER IV
Arrangement for recovery of the dues by banks.
12. Nothing in any law shall prevent in any manner a bank from causing
any land or any interest therein charged or mortgaged to it by an agriculturist
to secure any financial assistance, to be attached and sold through a civil
court and applying the proceeds of such sale towards all moneys due to it
from that agriculturist including the cost and expenses as may be awarded by
the Court :
Provided that no decree or order shall be passed by any court for the
attachment and sale of any homestead land or any interest therein of an agri-
culturist belonging to a Schedule Tribe nor any such land or interest therein
be sold in execution of a decree or order,
Explanation.- In this section "homestead" shall have the same meaning
as in clause (b) of section 133 of the Tripura Land Revenue and Land Re-
forms Act, 1960.
13. (1) An official of the State Government notified by the State Gov-
ernment as the prescribed authority for the purpose of this section may, on
the application of a bank, make an order on any agriculturist or his heir or
legal representative, directing the payment of sum due to the bank on ac-
count of financial 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 for the sale of any land or any interest therein or any other im-
movable 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 in terms of sub-
section (1) 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) Nothing 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.
Removal of
bar to attach-
ment and sale
by process of
court.
Recovery of
dues of a
Bank thro-
ugh a pre-
scribed au-
thority.
8
14. (1) Notwithstanding anything contained in any law for the time be-
ing in force, a bank shall have power to itself acquire agricultural land or
interest therein or any other immovable property which has been charged or
mortgaged to it by an agriculturist in respect of any financial assistance availed
of by him, provided the said land or interest therein or any other immovable
property has been sought to be sold by public auction and no person has
offered to purchase it for a price which is sufficient to pay to the bank mon-
eys 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 Gov-
ernment in this behalf.
(3) If the bank has to lease out any land acquired by it under sub-
section (1), pending sale thereof as indicated in sub-section (2) the period of
lease shall not exceed one year at a time and the lease shall not acquire any
interest in that property notwithstanding any provisions to the contrary in
any other law for the time being in force.
(4) A sale by a bank of land or interest therein in terms of this sec-
tion shall be subject to any provisions of any law in force which may place
restriction on purchase of land by non-belonging to a particualr tribe or sched-
uled caste or fragmentation of land.
15. Nothing in any law for the time being in force placing a ceiling or limit
on the holding of land shall apply to a bank acquiring land in terms of section
14 and holding such land till such time the bank is in a position to sell the
land in the manner provided in section 14 or otherwise, at a price which is
adequate to cover its dues.
CHAPTER V
Financing of co-operative societies by banks
16. Notwithstanding anything contained in the Tripura Co-operative Soci-
eties Act, 1974, or any law for the time being in force, it shall be lawful for a
bank to become a member of a co-operative society.
17. Notwithstanding anything contained in the Tripura Co-operative Soci-
eties Act, 1974, it shall be lawful for any co-operative society to borrow from
a bank.
Right of a
bank to ac-
quire and
dispose of
immovable
property.
Exemption to
banks from
restrictions
on acquisi-
tion of land in
excess of ceil-
ing.
Bank  eligible
to become
member of a
co-operative
society.
Powers of co-
operative so-
cieties to bor-
row from
banks.
9
18. (1) A bank shall have the right to inspect the books of any co-opera-
tive society which has either applied to the bank for financial assistance or is
indebted to the bank on account of financial assistance granted earlier.
(2) The inspection may be carried out by an Officer or any other
member of the paid staff of the bank with the previous sanction in writing of
the Registrar of Co-operative Societies.
(3) The Officer or any other member of the paid staff of the bank,
undertakings such inspection, shall, at all reasonable times, have access to
the books of accounts, documents, securities, cash and other properties be-
longing to or in the custody of the co-operative society inspected by him,
and shall also be supplied by such society such information, statements and
returns as may be required by him to assess the financial condition of the
society and the safety of financial assistance to be made to the society or
already made to it.
19. (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-operative
society and the co-operative society, so financed, other than dispute regard-
ing the disciplinary action taken by the society or its committee against a
paid employee of the society, shall be Co-operative Societies for decision.
(2) Where any question arises whether, for purpose 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-operative Societies whose decision
shall be final.
20. (1) If the Registrar is satisfied that any matte referred to him or
brought to his notice is a dispute within the meaning of section 19, the Reg-
istrar shall decide the dispute himself or refer it for disposal to a 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
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 decision to any other nominee or Board of nomi-
nees appointed by him.
Inspection of
books of a co-
operative so-
ciety by a
bank.
Disputes be-
tween a bank
and a co-op-
erative soci-
ety.
Settlement of
disputes.
10
(3) Notwithstanding anything contained in section 19, 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 question of law and fact, until the question has been tried by 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 pro-
ceeding, the Registrar shall take action as is provided in sub-section (1).
21. The Registrar or his nominee or Board of nominees hearing a dispute
under the last preceding section shall hear the dispute in the manner that may
be prescribed by the Registrar in this behalf.
22. When the dispute is referred for decision, the Registrar or his nominee
or the Board of nominees may, after giving a reasonable opportunity to the
parties to the dispute to be heard make an award on the dispute, on the ex-
penses incurred by the parties to the dispute in connection with the proceed-
ings and fees, expenses payable to the Registrar or his nominee or as the case
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 decid-
ing the dispute by the Registrar and shall, subject to appeal or review or
revision by the Co-operative Tribunal of the State, be binding on the parties
to the dispute.
23. Every award given by the Registrar or the Registrar's nominee or the
Board of nominees under scction 22, shall , if not carried out, on a certificate
signed by the Registrar, be deemed to be a decree of a civil court and shall be
executed in the same manner as a decree of such court.
24. (1) If a co-operative society is unable to pay its debts to a bank from
which it has borrowed, by reason of its members defaulting in the payment
of the money due by them, the bank may direct committee of such society to
proceed against such members by taking action under the Tripura Co-opera-
tive Societies Act, 1974.
(2) If the committee of the Co-operative Society fails to proced against
its defaulting members within a period of ninety days from the date of such
direction from the bank, the bank itself may proceed against such defaulting
members in which event, the provisions of the Tripura Co-operative Socie-
ties Act, 1974, the rules and the bye-laws made thereunder shall apply as if
all references to the society or its committee in the said provisions, rules and
bye-laws were references to the bank.
Procedure
for hearing
of disputes.
Decision of
Registrar or
his nominee
or Board of
nominees.
Recovery of
money
awarded.
Powers of a
bank to pro-
ceed against
defaulting
members of
a co-opera-
tive society.
11
(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 money 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.
25. The Registrar of Co-operative Societies shall draw the attention of the
bank advancing co-operative to the defects noticed in every audit or inquiry
or inspection of such society conducted as per provisons of the Tripura Co-
operative Societies Act, 1974, and shall also supply a copy each of such
audit, inquiry or inspection report if demanded, in writing , by the bank.
CHAPTER VI
Miscellaneous
26. Nothing in any law for the time being in force dealing with money
lending or agriculturists' debt relief shall apply to financial assistance availed
of by an agriculturist from a bank.
27. (1) Notwithstanding anything contained in any law for the time be-
ing in force, mortgages executed after the commencement of this Act by the
manager of a Joint Hindu family in favour of a bank for securing financial
assistance for agricultural purpose shall be binding on every member of such
Joint Hindu family.
(2) Where a mortgage executed in favour of a bank is called in ques-
tion 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.
28. Section 8 of the Hindu Minority and Guardianship Act, 1956, shall
apply to mortgage in favour of a bank subject to the modification that refer-
ence to the court therein shall be construed as reference to the Collector or
his nominee and the appeal against the order of the Collector or his nominee
shall lie to the Commissioner.
29. (1) The State Government may, by notification in the Official
Gazette, make rules for carrying out the purposes of this Act.
Audit, inspec-
tion and in-
quiry reports
of societies to
be available
to banks.
Exemption
from legisl-
ations relat-
ing to money
lending and
agricultur-
ists' debt re-
lief.
Mortgage ex-
ecuted by
managers of
Joint Hindu
families.
Modified ap-
plication of
section 8 of
Act 32 of
1976.
Power to ma-
ke  rules.
12
(2) Every rule made by the State Government under this Act shall be laid
as soon as may be after it is made, before the Legislative Assembly while it is
in session for a total period of not less than fourteen days which may be
comprised in one session or in two or more successive sessions and if, before
the expiry of the session in which it is so laid or the successive sessions
aforesaid the Legislative Assembly agree in making any modification in the
rule or the Legislative Assembly agree 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.
30. (1) The Tripura Agricultural Credit Operations Ordinance, 1976 is
hereby repeated.
(2) Notwithstanding such repeal, anything done, any action taken,
all notifications published, powers conferred, forms prescribed, orders, rules
and appointments made the said Ordinance, shall be deemed, respectively to
have been done, taken, published, conferred, prescribed or made under the
corresponding provisions of this Act.
Repeal and
savings.
Ordinance
No. 3 of 1976.
13
SCHEDULE
Declaration under section 6(1)
I,...................................................................... (aged ................................ years)
residing at ....................................................................being desirousof availing myself of
financial assistance from the  ...............................Bank make this declaration as required
by the section 6(1) of the Tripura Agricultural Credit Operations Act, 1976, that I,
.................................................... own/have interests as a uner-raiyat in the land specified
below, and I hereby create a charge on the said land/interest in land in favour of the bank
for securing the financial assistance which the bank may make and for all future assist-
ance, if any, which the bank make to me together with interest and costs and expenses
thereon.
Name of Name of    Name of     Khatian No.         Boundaries Area
village.   Sub-Division.    District.   Plot      Plot South     North      Hect.       Area
Area    No.      share     East      West       area
Land Revenue Approximate Encumbrances, Remarks,
and cess value if any. if any
Rs. paise Nature Amount
In witness whereof, I, Shri ...................................hereunder set my hand
this...............................day of ................................ in the year one thousand nine hundred
and ............................................ .
Witnesses
Signed and delivered by the above named in the presence of :--
(1)
(2) Signature of declarant
Attested by
Forwarded with compliments to the Village Officer with a request to include the
particulars of the charges ............... created under the declaration in the Record-of-rights
and to return to the bank for its record.
  Manager/Agent.
......................Bank
14
Returned with compliments to the Manager/Agent ...................... Bank. The charge
created under the declaration is duly included in the Record of Rights on the .................
day of ..................... 19 ................................
Village Officer.
Forwarded with compliments to the Sub-Registrar with a request to record the par-
ticulars of the charge ........................ created under the declaration in his office.
Manager/Agent.
       ................. Bank....
     Place......................
Returned with compliments to the Manager/Agent.....................Bank. The charge
under the declaration is duly recorded.
      Sub-Registrar.
~~~~*~~~~

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