LexThe U P Sahkari Gram Vikas Bank Act 1964
Uttar Pradesh · state statute
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THE UTTAR PRADESH 1[SAHKARI GRAM VIKAS BANKS
ACT], 19642
(U. P. Act No. XVI of 1964)
Amended by
U. P. Act no. 27 of 1978
U. P. Act no. 03 of 1979
U. P. Act no. 16 of 1989
U. P. Act no. 19 of 1994
U. P. Act no. 13 of 2014
[Passed in Hindi by the Ut tar Pradesh Legislative Assembly
on April 13, 1964 and by the U ttar Pradesh Legislative Council on
May 6, 1964.
Received the assent of the President on July 9, 1964 under
Article 201 of the Constitution of India and was published in the
Uttar Pradesh Gazette. Extraordinary, dated, July 20, 1964.]
AN
ACT
to facilitate the working of Sahakari Gram Vikas Banks in the
State of Uttar Pradesh
Preamble Whereas it is expedient further to facilitate the working of
the 3[Uttar Pradesh Sahkari Gram Vikas Bank] and the formation and
functioning of 3[Sahkari Gram Vikas Banks] in the State :
Short title
and comme-
ncement
IT IS HEREBY enacted in the Fifteenth Year of the Republic of
India as follows :—
1. (1) This Act may be called the Uttar Pradesh 3[Sahkari Gram
Vikas Bank] Act, 1964.
(2) It extends to the whole of the State of Uttar Pradesh.
(3) It shall come into force from such date as the State
Government may, by notification * in the Gazette, appoint in this
behalf.
Definition 2. In this Act, unless there is anything repugnant in the subject
or context,—
(a) “Board” means the Board of Directors of the 4[Uttar Pradesh
Gram Vikas Bank] ;
1. Subs. by sec. 2 of U. P. Act no. 19 of 1994.
2. For Statement of Objects and Reasons, see Uttar Pradesh Gazette, Extraordinary, dated April 3, 1964.
* The Act came in to force w. e. f. August 15, 1964 vide notification no. 4568c/XIICA- 1150/63 dated
August 13, 1964.
3. Subs. by sec. 3 of U. P. Act no. 19 of 1994.
4. Subs. by sec. 4 of U. P. Act no. 19 of 1994.
142
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
(b) “Bye-laws” means the bye -laws registered under the Co -
operative Societies Act, for the time being in force in Uttar Pradesh and
includes a registered amendment of the bye-laws ;
1[(c) ‘‘Gram Vikas Bank’ or ‘ ‘Sahakari Gram Vikas Bank’’ means
a Co-operative Society registered under the Uttar Pradesh Co- operative
Societies Act, 1965, admitted as a member of the Uttar Pradesh
Sahakari Gram Vikas Bank] and having as its main object the
advancement of loans to its members on the mortgage of or charge on
immovable property or on hypoth ecation of movable property it against
unconditional guarantee of the State Government generally for
agricultural and rural development including construction of dweling
houses in rural areas and undertake any other activities in the interest
of, or desire d by its members with the prio r approval of the State
Government.’’]
(d) “Managing Committee ” means the governing body of a
1[Gram Vikas Bank] to which the managem ent of its affairs is
entrusted;
(e) “Officer” includes a chairman, secretary, treasur es, member
of the Board or the managing committee or other person empowered
under the rules or the bye -laws to give directions in regard to the
business of the
2[Uttar Pradesh Gram Vikas Bank] or a 1[Gram Vikas
Bank] ;
(f) “Prescribed” means prescribed by rules made under this Act;
(g) “Rules” means the rules made under this Act ;
(h) “Registrar” means the person appointed by the State
Government to be Registrar of Co -operative Societies for the State of
Uttar Pradesh under the provisions of the C o-operative Societies Act
for the time being in force in Uttar Pradesh ;
(i) “Regulation” means the regulations framed by the Board
under this Act ;
(j) 2[Uttar Pradesh Gram Vikas Bank ] or 2[Uttar Pradesh
Sahkari Gram Vikas Bank] means a co -operative society registered
under the Co-operative Societies Act for the time being in force in Uttar
Pradesh with its area of operation covering the whole of Uttar Pradesh
and carrying on the business as a 2[Gram Vikas] Bank and facilitating
[the operation of its members;]
(k) “State Government ” means the Government of Uttar
Pradesh ;
(l) “Trustee” means the Trustee referred to in section 4 of this
Act.
Number of
[Gram Vikas
Bank]
3. There shall not be more than one 2[Uttar Pradesh Gram
Vikas Bank] for the whole of Uttar Pradesh and there may be as many
[Gram Vikas Bank] as may be deemed necessary by the Registrar.
1. Subs. by sec. 2 of U. P. Act no. 13 of 2014.
2. Ins. by sec. 4 of U.P. Act no. 19 of 1994.
144
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
Appointment
of Trustee
and his
powers and
functions
4. (1) The Registrar shall be the Trustee for the purpose of
securing the fulfillment of the obligations of the 1[Uttar Pradesh Gram
Vikas Bank] to the holders of debentures issued by the Board.
(2) The powers and functions of the Trustee shall be governed
by the provisions of this Act and by the instrument of Trust executed
between the State Land Development Bank and the Trustee as
modified 2[or substituted] from time to time by their mutual agreement
and with the approval of the State Government.
Trustee to be
corporation
sale
5. The Trustee appointed under section 4 shall be a corporation
sole by the name of the Trustee and shall have perpetual succession
and a common seal and in his corporate name may sue and be sued.
Issue of
debentures
by the board
6. 3[(1) With the previous sanction of the State Government and
the Trustee, and subject to such terms and conditions as the State
Government may im pose, the Board may, from time to time, issue
debentures of one or more denominations, for such period or periods
as it may deem expedient, against the unconditional guarantee by the
State Government for repayment in full of the principal and payment of
interest thereon or on the security of mortgages, charges or
hypothecations partly held and partl y to be acquired and the
properties and other assets transferred or deemed to have been
transferred under the provisions of section 12 by the Land
Development Bank to the State Land Development Bank and other
properties of the State Land Development Bank ;]
4[Provided that no debenture shall be issued otherwise than in
conformity with such direction or instructions as may be issued by the
Reserve Bank of India, or the National Bank of Agricultural and Rural
Development Board from time to time.];
(2) Such debentures may contain a term fixing a period not
exceeding 5[twenty years] from the date of issue during which they
shall be irredeemable, or reserving to the Board the right to all in at
any time any of the debentures in advance of the date fixed for
redemption, after giving to the debenture -holders concerned not less
than three months’ notice in writing.
6[(3) The total amount due on debentures already iss ued by the
Board under sub -section (1), together with the amount of any
debentures proposed to be issued, shall not exceed the aggregate of—
(a) the amounts due on the mortgages or charges or
hypothecations 7 [or any loan advanced against the unconditional
guarantee by the State Government] and the value of other assets
transferred or deemed under section 12 to have been transferred by
the Land Development Bank to the State Land Development Bank and
subsisting at such time ;
(b) the accumulations in the Debenture Redemption Fund ;
1. Subs. by sec. 4 of U.P. Act no. 19 of 1994.
2. Subs. by sec. 3 of U.P. Act no. 27 of 1978.
3. Subs. by sec. 4 (i) of U. P. Act no. 27 of 1978.
4. Ins. by sec. 6(a) of U.P. Act no. 16 of 1989.
5. Subs. by sec. 6(b) of U.P. Act no. 16 of 1989.
6. Subs. by sec. 4(2) of U. P. Act no. 27 of 1978.
7. Subs. by sec. 6(c) of U. P. Act no.16 of 1989.
146
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
¼[k½ _.k&i= ekspu&fuf/k esa lap;u (
(c) the cash in hand and the balances with the banks and the
book value or market value of securities under general funds,
whichever is less ; and
(d) such percentage of the amounts mentioned in clauses (a), (b)
and (c), as may be prescribed.”
Vesting of
property in
Trustee and
Debenture
holders
charge on the
assets
1[7. Upon he issue of debentures under section 6, the benefit
under the State Government guarantee and the mortgage d properties
and other assets referred to in sub -section (3) of the said section and
held by the Board, shall vest in the Trustee and the holders of the
debentures shall be entitled to the benefit of the guarantee of the State
Government and shall also hav e a floating charge on all such
mortgages and assets and amounts paid under such guarantee or
mortgages and remaining in the hands of the
2[Uttar Pradesh Gramin
Vikas Bank or of the Trustee.]
Guarantee by
State
Government
of principal
and
interest 3[of
the money to
be borrwed
by means of
debentures
or otherwise]
8. (1) T he principal of and interest deb entures issued under
section 6 shall in respect of such maximum amount as may be fixed by
the State Government by notification in the “Gazette” in this behalf,
and subject to such conditions as it may think fit to impose therein,
carry the guarantee of the State Government.
(2) The State Government may, subject to such conditions as
may be prescribed, increase the maximum amount of any guarantee
given under sub-section (1).
(3) The State Government may, after consulting the Board and
the Trustee—
(a) by notification in the official Gazette, and
(b) by notice in such of the principal newspapers in the State
and of other States in India as the State Government may select in this
behalf,
discontinue any guarantee given by it or restrict the maximum
amount thereof or modify the conditions, subject to which it is given,
with effect from a specified date, not being earlier than six months
from the date of publication of the notification in the official Gazette :
Provided that the withdrawal, restriction or modification of any
guarantee shall not in any way affect the guarantee carried by any
debenture issued prior to the date on which such withdrawal,
restriction or modification takes effect.
(4) Every notification and notice referred to in sub -section (3)
shall, where the maximum amount of the guarantee is to be restricted
or the conditions subject to which the guarantee is given, are to be
modified, set
forth precisely the scope and effect of the restriction or
modification, as the case may be.
4[(5) Notwithstanding anything to the contrary contained in any
any other provision of this Act the board may borrow money from any
of the institutions referred to in section 9-A, against the unconditional
guarantee by the State Government in any other manner or means
other than by issuance of debentres provided in section 6, on the same
1. Subs. by sec. 5 of U.P. Act No. 27 of 1978.
2. Subs. by sec. 4 of U.P. Act No. 19 of 1994.
3. Subs. by sec. 3(a) of U.P. Act No. 13 of 2014.
4. Ins. by sec. 3(b) of U.P. Act No. 13 of of 2014.
148
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
fcuk 'krZ izR;kHkwfe ds lkis{k] /ku m/kkj ys ldrk gSA]
Guarantee
Fund
9. (1) The State Government may constitute a Guarantee Fund
on such terms and conditions as it may deem fit, for the purpose of
meeting losses tha t might arise on account of loans advanced by
the 1[Gram Vikas Bank] on the security of mortgages not being fully
recovered due to such circumstances as may be prescribed.
(2) The 1[Uttar Pradesh Gram Vikas Bank] and the 1[Gram Vikas
Bank] shall contrib ute to such fund at such rates as may be
prescribed.
2[(2-A) The State Government may also contribute to the fund
from time to time such amount as it may deem fit.]
(3) The fund shall be maintained and utilized in such manner
and for such purposes as may be prescribed.
Power to
borrow
money
3[9-A.–Notwithstanding anything contained in the Uttar Pradesh
Co-operative Societies Act, 1965, the Bond may borrow money from the
State Government of the Reserve Bank of India, or the National Bank
for Agriculture and Rural Development or such other financial
institutions, as may be approve by the Trustee.]
Priority of
mortgage
over certain
claims Act
XIX of 1883
10. A mortgage executed 4[or charge created] in favour of the
1[Uttar Pradesh Gram Vikas Bank] or [Gram Vikas Bank] after the
commencement of this Act, shall have priority over any claim of the
Government arising from a loan granted, after the execution of such
mortgage, 4[or creation of such charge] under the Land Improvement
Loans Act, 1883.
Right of
1[Gram Vikas
Bank] or
1[Uttar
Pradesh
Gram Vikas
Bank] to
purchase
mortgaged
property
U. P. Act 1 of
1951
11. 5[(1) Notwithstanding anything contained in any law for the
time being in force, it shall be lawful for a 1[Gram Vikas Bank] or the
1[Uttar Pradesh Gram Vikas Bank] to purchase any property sold under
this Act and the property so purchased shall be disposed of by such
Bank by sale within period as may be fixed by the Trustee.]
(2) Nothing in section 154 of the U. P. Zamindari Abolition and
Land Reforms Act, 1950, or in any other law for the time being in force,
fixing a maximum limit of agricultural holding 6[or other immovable
property] shall apply to the acquisition of land 6[or other immovable
property] by 1[Gram Vikas Bank] or the 1[Uttar Pr adesh Gram Vikas
Bank] under sub-section (1).
7[(2-A) if the bank has to lease out any land acquired by it
under sub-section (1) pending sale thereof, the period of lease shall not
exceed one year at a time and the lessee shall not acquire any other
int
erest in that property, notwithstanding any provisions to the
contrary in any other law for the time being in force.]
Mortgages
executed in
favour of
12. The mortgages executed in favour of and all other assets
transferred to, a 1[Gram Vikas Bank] by the members thereof, before or
1. Subs. by sec. 3 of U.P. Act No. 19 of 1994.
2. Ins. by sec. 2 of U. P. Act No. 3 of 1979.
3. Ins. by sec. 7 of U. P. Act No. 16 of 1989.
4. Ins. by sec. 3 of U.P. Act No. 3 of 1979.
5. Subs. by sec. 4 of U.P. Act No. 3 of 1979.
6. Subs. by sec. 8 of U.P. Act No. 16 of 1989.
7. Ins. by sec. 4 (b) of U. P. Act No. 3 of 1979.
150
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
cSad] ds lnL;ks }k jk mlds i{k esa fu’ikfnr cU/kd rFkk mls laØfer vU; leLr
ifjlEifRr;ksa ,sls fu’iknu ;k laØe.k ds fnukad ls mDr 1[xzke fodkl cSad] }kjk
fu’ikfnr ca/kd
1[mRrj çns'k
xzke
in 1[Uttar
Pradesh
Gram Vikas
Bank]
such 1[Gram Vikas Bank] to the 1[Uttar Pradesh Gram Vikas Bank ]
and shall vest in 1[Uttar Pradesh Vikas Bank].
Power of
1[Gram Vikas
Bank] to
receive
money and
grant
discharges
13. Notwithstanding that a mortgage executed in favour of a
1[Gram Vikas Bank] has been transferred or is deemed under the
provisions of section 12 to have been transferred to the 1[Uttar Pradesh
Gram Vikas Bank]—
(a) all moneys due under the mortgage shall, in the absence of
any specific direction to the contrary issued by the Board or the
Trustee and communicated to the mortgagor, be payable to the 1[Gram
Vikas Bank] and such payment shall be as valid as if the mortgage had
not been so transferred; and
(b) the 1[Gram Vikas Bank] shall, in the absence of any specific
direction to the contrary issued by the Board or the Trustee and
communicated to the 1[Gram Vikas Bank] be entitled to sue on the
mortgage or take any other proceeding for the recovery of the amount
due under the mortgage.
Right of
1[Gram Vikas
Bank] to pay
prior debts of
mortgagor
Act IV of
1882
14. (1) Where a mortgage is executed in favour of a 1[Gram
Vikas Bank] for payment of prior debts of the mortgagor, the bank,
may, notwit hstanding anything contained in the Transfer of Property
Act, 1882, or any other law for the time being in force, by notice in
writing, require any person to whom any such debt or part thereof is
due, to receive from the bank at its registered office such amount
within such period as may be specified in the notice.
(2) Where any such person refuses to receive such notice or
fails or refuses to receive payment, such debt or part thereof, as the
case may be, shall, cease to carry interest from the expiratio n of the
period specified in the notice :
Provided that where there is a dispute as regards the amount of
any such debt the person to whom such debt is due shall be bound to
receive payment of the amount offered by the 1[Gram Vikas Bank]
towards the debt, but such receipt shall not prejudice the right, if any,
of such person, to recover the balance claimed by him.
Distrait when
to be made
15. (1) If any installment payable under a mortgage executed in
favour of a 1[Gram Vikas Bank] or any part of such in stallment
remains unpaid for more than one month from the date on which it
falls due, the managing committee may in addition to any other
remedy available to the said bank, apply to the Registrar for the
recovery of such installment or part thereof by distrait and sale of the
produce of the mortgaged land including the standing crops thereon.
1. Subs. by sec. 3 of U. P. Act no. 19 of 1994.
152
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
vf/kd`Fk dksbZ vU; O;fDr] VªkalQj vkQ çkiVhZ ,sDV] 1882 esa nh x;h fdlh ckr ds 1882
notwithstanding anything contained in the Transfer of Property Act,
1882 take action in the manner prescribed for the purpose of distrainly
and selling such produce :
Provided that no distrait shall be made after the expiry of twelve
months from the date on which the installment fell due.
(3) The value of the property distrained shall, as nearly as
possible, be equal to the total of the amount due, the expenses of the
distrait and the costs of the sale and also the amount due on a prior
charge, if any, on the property distrained.
Power of sale
when to be
exercised
Act IV of
1882
16. (1) Notwithstanding anyth ing contained in the Transfer of
Property Act, 1882, where a power of sale without the intervention of
court is expressly conferred on a 1 [Gram Vikas Bank] 2 [by a
declaration of charge made or mortgage deed] executed before or after
the commencement of thi s Act, the managing committee of such bank
or any person authorized by such committee in this behalf shall, in
case of default in payment of the
2[money due under the mortgage or
charge] or any part thereof, have power, in addition to any other
remedy avai lable to the said bank, 2[to bring the property subject to
any mortgage or charge to sale] without the intervention of the court.
(2) No such power shall be exercised unless—
(a) a notice in writing requiring payment of such mortgage
money or part has been served upon—
(i) the mortgagor or each of the mortgagors ;
(ii) any person who has to the knowledge of the bank any
interest in or charge upon the property mortgaged or right to redeem
the same ;
(iii) any surety for the payment of the mortgage d ebt or any
part thereof ; and
(iv) any creditor of the mortgagor who has in a suit for the
administration of his estate obtained a decree for sale of the mortgaged
property ;
(b)
default in payment of such mortgage money or part thereof
continued beyond three months after such service ; and
(c) the Board has after hearing the objections, if any, of the
mortgagor or any other person mentioned in clause (a), authorized the
exercise of such power.
(3) A sale under this section shall be conducted in such
1. Subs. bysec. 4 of U. P. Act no. 19 of 1994.
2. Subs. by sec. 5 (a) of U. P. Act no. 3 of 1979.
154
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
¼3½ bl /kkjk ds v/khu foØ; ,slh jhfr ls fd;k tk;xk tks fu;r dh tk;sA
1 [(4) Where any property sold under this Act is in the
occupancy of any person creating mortgagor charge, or of some person
on his behalf, or of some person claiming title subsequent to the
creation of such mortgage o r charge in favour of a 2[Gram Vikas Bank]
or the 2[Uttar Pradesh Gram Vikas Bank] , the Collector, shall, on the
application of the purchaser, order delivery to be made by putting such
purchaser, or any person appointed by him in this behalf, in
possession of the property.]
3[(5) A sale under this section of an agricultural holding or any
other immovable property or of any interest therein shall be subject to
the provisions of section 157 -A and 157 -B of the Uttar Pradesh
Zamindari Abolition and Land Reforms Act, 1950.]
Power of
2[Gram Vikas
Bank] where
mortgaged
property is
destroyed or
security
becomes
insufficient
17. Where any property mortgaged to a 2[Gram Vikas Bank] is
wholly or partially destroyed or the security is rendered insufficient
and the m ortgagor having been given a reasonable opportunity by the
managing committee of the 2[Gram Vikas Bank] of providing further
security so as to render the security sufficient or of repaying such
portion of the loan as may be determined by the committee, has failed
to provide such security or to repay such portion of the loan, the whole
of the loan shall be deemed to fall due at once and the committee shall
be entitled to take action against the mortgagor under this Act or any
other law for the time being in force for the recovery thereof.
Explanation—A security shall be deemed insufficient within
the meaning of this section if the value of the mortgaged property does
not exceed the amount for the time being due on the mortgage by such
proportion as may be specified in the rules, regulations or the bye-laws
of the
2[Gram Vikas Bank].
Power of
Board on of
Trustee to
distrain and
sell property
etc.
18. (1) In the case of a direct mortgage with the 2[Uttar Pradesh
Gram Vikas Bank] , the Board or the Trustee sh all have all the powers
conferred on the managing committee of a 2[Gram Vikas Bank] under
sections 15, 16 and 17, and in exercising the power under sub -section
(1) of section 16, clause (c) of sub- section (2) of that section shall be
deemed to be non-existent.
(2) The Board or the Trustee may direct the managing
committee of a 2[Gram Vikas Bank] to take action against a defaulter
under section 15 or section 16 or section 17, and if the committee
neglects or fails to do so, the Board or the Trustee may tak e such
action subject to the provisions of sub-section (1).
(3) (a) Where such action as is mentioned in sub -section (1) or
1. Ins. by sec. 5(b) of U.P. Act No. 3 of 1979.
2. Subs. bysec. 4 of U. P. Act no. 19 of 1994.
3. Ins. by sec. 9 of U. P. Act no. 16 of 1989.
156
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
micU/k mlds lEcU/k esa mlh çdkj çkIr gksaxs ekuks mDr micU/kksa esa 1[xzke fodkl cSad]
as if all references to the 1[Gram Vikas Bank] and to its managing
committee in the said provisions were references to the 1[Uttar Pradesh
Gram Vikas Bank] and the Board respectively.
(b) Where such action as is mentioned in sub-section (1) or sub-
section (2) is taken by the Trustee, the provisions of this Act and the
rules or regulations made in this behalf shall apply in respect thereto
as if all references to the 1[Gram Vikas Bank] or to its managing
committee in the said provisions were references to the Trustee.
Title of
purchaser
not to be
questioned
on the irregu-
larity etc.
19. Where any property is sold in the exercise or purported
exercise of a power of sale under section 16, the title of the purchaser
shall not be questioned on the ground that—
(a) the circumstances required for authorizing the sale had not
arisen, or
(b) due notice of the sale was not given, or
(c) the power of sale was otherwise improperly or irregularly
exercised ; but any per son who has suffered any damage by an
unauthorized, improper or irregular exercise of any such power shall
have the right to claim damages against the 1[Gram Vikas Bank].
Mortgage not
to be
questioned
on
insolvency of
mortgagor
Appointment
of receiver
and his
powers
20. Notwithstanding anything contained in any law relating to
insolvency, a mortgage executed in favour of a 1[Gram Vikas Bank]
shall not be called in question on the ground that it was not executed
in good faith for valuable consideration or on the ground that it was
executed in order to give the 1[Gram Vikas Bank] a preference over
other creditors of the mortgagor.
Act IV of
1882
21. (1) The Board may on its own motion, or on the application
of a 1[Gram Vikas Bank] , under circumstances in which the power of
sale without the intervention of court may be exercised under section
16 by managing committee or the Board, appoint in writing, a receiver
of the mortgaged property or any part thereof and such receiver shall
be entitled to take posses sion of the property, to collect its produce
and income, to retain out of any money realized by him, his expenses
of management including his remuneration, if any, as fixed by the
Board, and to apply the balance in accordance with the provisions of
sub-section (8) of section 69-
A of the Transfer of Property Act, 1882 so
far as applicable.
(2) The Board may, either on its own motion or on an
application made by the mortgagor, remove a receiver appointed under
sub-section (1).
(3) A vacancy in the office of the receiver maybe filled up by the
Board.
1. Subs. by sec. 4 of U. P. Act no. 19 of 1994.
158
——————————————————————————————————————————
[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
(4) Nothing in this section shall empower the Board to appoint
a receiver where the mortgaged property is already in the possession of
a receiver appointed by a civil court.
Vesting of
right of
alienation on
agriculturists
not having
such rights
1[21-A. The State Government may, by notification vest, subject
to such restriction as may be specified in the notification, all
Bhumidhars whether with transferable right or not , 2[Asamis] and the
Government lessees with rights of alienation in land held under their
tenure or any interest in such land including the right to create a
charge or mortgage on such land or interest in favour of a 3[Gram
Vikas Bank] or the 3[Uttar Pradesh Gram Vikas Bank] for the purpose
of obtaining loan from such banks and upon the issue of such
notification, such Bhumidhar , 2[Asami] and Government lessees shall ,
notwithstanding anything contained in any law for the time being in
force or any contract, grant or other instrument to the contrary or any
custom or tradition, have a right of alienation in accordance with the
terms of notification.]
Creation of
charge in
favour of
3[Gram Vikas
Bank] or
3[Uttar
Pradesh
Sahkari Gram
Vikas Bank]
4[21-B. (1) A person desirous of securing financial assistance
from a 3[Gram Vikas Bank ] or the 3[Uttar Pradesh Sahakari Gram
Vikas Bank] by hypothecation of movable property owned by him may
make a declaration in writing on a duly stamped paper that he thereby
hypothecates such property in favour of such Bank.
(2) When a person desirous of securing financial assistance
from a Krishi Evam Gramya Vikas Bank or the Sahkari Krishi Evam
Gramya Vikas Bank does not possess property of sufficient value to
secure the loan, financial assistance may be, provided to him by such
bank on furnishing sureties to the satisfaction of the Bank subject to
such conditions, if any, as may be prescribed.
Provisions of
this Act to
apply to
hypotheca-
tion
21-C. The provisions of this Act and rules made thereunder
relating to charges and mortgages made under this Act shall mutatis
mutandis apply to hypothecation of movable property made under this
Act.]
Restrictions
on
mortgagors
power to
lease or
create other
rights in the
mortgaged
and charged
property
5[22. Notwithstanding anything contained in the Transfer of
Property Act, 1882, or any other law for the time being in force on
property in respe ct of which a charge, hypothecation or mortgage has
been made in favour of a 3[Gram Vikas Bank] or 3[Uttar Pradesh Gram
Vikas Bank] shall be sold or otherwise transferred by the person
making the charge, hypothecation or mortgage until the entire amount
of loan or advance taken by him from the 3[Gram Vikas Bank] or the
3[Uttar Pradesh Gram Vikas Bank] together with interest thereon is
paid to the bank and any transaction made in contravention of this
1. Ins. by sec. 6 of U. P. Act no. 3 of 1979.
2. Ins. by sec. 10 of U. P. Act no. 16 of 1989.
3. Subs. by sec. 3 of U. P. Act no. 19 of 1994.
4. Ins. by sec. 11 of U. P. Act no. 16 of 1989.
5. Subs. by sec. 7 of U.P. Act No. 3 of 1979.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
laO;ogkj 'kwU; gksxk (
Provided that, if a part of the amount borrowed by a member is
paid, the 1[Uttar Pradesh Gram Vikas Bank], or as the case maybe, the
1[Gram Vikas Bank] with the approval of the 1[Uttar Pradesh Gram
Vikas Bank] , may, on application from the member release from the
mortgage, charge or hypothecation created or made in favour of the
bank, such part of the property or interest therein as it may deem
proper with due regard to the security of the balance of the amount
remaining outstanding from the member.
Registration
of documents
executed in
favour of
1[Gram Vikas
Bank] or the
1[Uttar
Pradesh
Gram Vikas
Bank]
2 [23. (1) Notwithstanding anything contained in the Regis -
tration Act, 1908, or any other law for the time being in force, a deed
creating charge or mortgage in any land or interest therein or in other
immovable property, executed by a borrower member in favour of a
1[Gram Vikas Bank] or the 1[Uttar Pradesh Gram Vikas Bank] for the
purpose of securing repayment of loan, shall be deemed to have been
duly registered in accordance with that Act with effect from the date of
the execution provided the bank has sent to the Sub -Registrar within
the local limits of whose jurisdiction the whole or any part of the
property charged, or mortgaged is situate, within a period of three
months from the date of execution, by registered post or hand delivery
under acknowledgement, a copy of the document creating such charge
or mortgage duly certified to be a true copy by any employee of the
bank authorized to sign on its behalf and the Sub- Registrar concerned
shall file such copy or copies, as the case may be, in his Book no. 1
prescribed under section 51 of the Registration Act, 1908.
(2) Where the Sub -Registrar is of the opinion that the said
document is not duly stamped or that it suffers from any defect
arising-out of accidental slip or omission, he shall send back the copy
or copies as the case may be, of the document to the bank requiring it
to get the deficiency in stamp duty made good on the original or to get
the defect removed within thirty days or within such extended time as
the Sub -Registrar may allow in that behalf. The bank shall get the
deficiency made good or the defect removed, notwithstanding anything
contained in the Indian Stamps Act, 1899.
(3) After the deficiency in stamp duty has been made good or as
the case may be, the defect has been removed, the bank shall send the
copy of the document again to the Sub -Registrar in the manner laid
down in sub-section (1), and thereupon the Sub -Registrar shall file the
copy in Book no. 1 in accordance with the provisions of sub-section (1).
(4) Notwithstanding anything contained in the Registr ation Act,
1908 it shall not be necessary for the borrower member, the Trustee or
for any officer of a 1“Gram Vikas Bank” or of the 1“Uttar Pradesh Gram
Vikas Bank” to appear in person or by agent at any registration office
in any proceedings connected with the registration of any instrument
1. Subs. by sec. 4 of U. P. Act no. 19 of 1994.
2. Subs. by sec. 8 of U.P. Act no. 3 of 1979.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
executed by him in his official capacity or to sign as provided in section
58 of the said Act.
Revenue
Register for
noting
charge or
mortgage
1 [23-A. Where a copy of the document creating charge or
mortgage has been sent for registration under section 23, the bank
shall also send a copy of such document to the Tahsildar or such other
official as may be designated in this behalf by the State Government.
The Tahsildar or other official shall make a note of the particulars of
such charge, or mortgage in a register maint ained for this purpose.
The register shall be in such form and inspection thereof shall be
allowed and copies of extracts therefrom issued in such manner and
on payment of such fee as may be prescribed.]
Delegation of
certain
powers by
Board
2[24. The Board may, if it thinks fit, delegate all or any of its
powers under section 16, 18 and 21 of this Act to any one or more of
the officers of the Bank.]
Section 102,
103 and 104
of the
Transfer of
property Act,
1882, to
apply to
notices under
this Act.
Act IV of
1882
25. The provisions of sections 102 and 103 of the Transfer of
Property Act, 1882 and of any rules made by the High Court under
section 104 of the said Act for carrying out the purposes of the said
sections, shall apply, so far as may be in resp ect of all notices to be
served under this Act.
Mortgages
executed by
manager of
joint Hindu
families
26. (1) Where a mortgage executed in favour of 3[Gram Vikas
Bank] whether before or after the commencement of this Act, is called
in question on the gro und that it was executed by the manager of a
joint Hindu family for a purpose not binding on the members thereof
whether major or minor, the burden of proof shall, notwithstanding
anything contained in any other law for the time being in force, rest
upon the party which calls such mortgage in question.
(2) For the purpose of this section the following shall be
regarded as purposes binding on members of a joint Hindu family—
(a) the improvement of agricultural land or of the methods of
cultivation or for financing any other means to raise the productivity of
land ; and
(b) the purchase of land.
4[(c) Construction of rural dwelling houses for the family.]
Modification
subject to
which
section 8 of
the Hindu
Minority and
Guardianship
Act, 1956
shall apply to
the
mortgages
Act XXXII of
27. Section 8 of the Hindu Minority and Guardianship Act,
1956, shall apply to mortgages in favour of a 3[Gram Vikas Bank]
subject to the modification that reference to the court therein shall be
construed as reference to the Collector or his nominee and the appeal
against the order of the Collector or his nomine e shall lie to the
Commissioner.
1. Subs. by sec. 8 of U. P. Act no. 3 of 1979.
2. Subs. by sec. 9 ibid.
3. Subs. by sec. 4 of U. P. Act no. 19 of 1994.
4. Ins. by sec. 12 of U. P. Act no. 16 of 1989.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
,sDV la0 32]
1956
References to
banks in
other Act
how
construed
1 [28. (1) With effect from the commencement of the Uttar
Pradesh 2 [Sahkari Gra m Vikas Bank] (Amendment) Act, 1989, any
reference in any law or statutory instrument—
(a) to U. P. State Co -operative Land Mortgage Bank, or 2[Uttar
Pradesh Sahakari Gram Vikas Bank] or 2[Uttar Pradesh Gram Vikas
Bank], shall be construed as a reference to the Uttar Pradesh Gramya
Vikas Bank,
(b) to a land mortgage bank or a 2[Gram Vikas Bank”] shall be
construed as a reference to a 2[Gram Vikas Bank].
(2) The name of the Uttar Pradesh State Co -operative 2[Gram
Vikas Bank] or a 2[Gram Vikas Bank] existing on the date of
commencement of the Uttar Pradesh 2[Sahkari Gram Vikas Bank]
(Amendment) Act, 1989 shall be changed as the 2[Uttar Pradesh
Sahkari Gram Vikas Bank] , or as the case may be, 2[Gram Vikas
Bank], by the Registrar by order in writing an d the original certificate
and bye-laws of such bank shall stand amended accordingly and such
change of name, made under order of the Registrar, be deemed to be a
change of name duly effected by the society under the Uttar Pradesh
Co-operative Societies Act, 1965.
(3) Where a mortgage is executed by a person directly in fa vour
of the Uttar Pradesh State Co- operative 2[Gram Vikas Bank] , all
references to 2[Gram Vikas Bank] in section 14, 20, 22, 23, 26, and 27
shall be deemed to be references to the 2[Uttar Pradesh Sahakari Gram
Vikas Bank].
References to
banks in
other Acts
now
construed
after the
commence-
ment of the
Uttar Pradesh
Sahkari
Krishi Evam
Gramya
Vikas Banks
(Amendment)
Act, 1994
3[28-A. (1) With effect from the commencement of the Ut tar
Pradesh Sahkari Krishi Evam Gramya Vikas Banks (Amendment) Act,
1994, any reference in any law or statutory instrument—
(a) to the 2[Uttar Pradesh Sahkari Gram Vikas Bank] shall be
construed as a reference to the Uttar Pradesh Sahkari Gram Vikas
Bank.
(b)
to the Rajya Krishi Evam Gramya Vikas Bank shall be
construed as a reference to the 2[Uttar Pradesh Gram Vikas Bank].
1. Subs. by sec. 13 of U. P. Act no. 16 of 1989.
2. Subs. by U. P. Act no. 19 of 1994.
3. Ins. by sec. 5 of U. P. Act no. 19 of 1994.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
(c) to a 1[Gram Vikas Bank] shall be construed as a reference to
a Gram Vikas Bank.
(d) to a 1[Sahkari Gram Vikas Bank ] shall be construed as a
reference to a 1[Sahkari Gram Vikas Bank] .
(2) The names of the 2 [Uttar Pradesh Rajya Sahkari Krishi
Evam Gram Vikas Bank] and 1[Krishi Evam Gramya Vikas Bank]
existing on the date of commencement of the Uttar Pradesh Sahkari
Krishi Evam Gramya Vikas Bank (Amendment) Act, 1994 shall be
changed respectively as the
1[Uttar Pr adesh Sahkari Gramya Vikas
Bank] and 1[Gram Vikas Bank] by the Registrar by order in writing and
the original certificate and bye-laws of such bank shall stand amended
accordingly and such change of name, made under order o f the
Registrar, be deemed to be a change of name duly effected by the
society under the Uttar Pradesh Co-operative Societies Act, 1965.
(3) Where a mortgage is executed by a person directly in favour
of the Uttar Pradesh Sahkari Gram Vikas Bank, all references to Gram
Vikas Bank in Sections 14, 20, 22, 23, 26, and 27 shall be deemed to
be references to the Uttar Pradesh Sahkari Gram Vikas Bank.]
Power of the
Board to
make
regulation
29. The Board may, subject to the approval of the Trustee,
make reg ulations not inconsistent with the provision of this Act, the
rules and the bye -laws of Uttar Pradesh State Co -operative 1[Gram
Vikas Bank], providing for all or any of the following matters :—
(a) fixing the period of debentures and the rate of interest
payable thereon ;
(b) calling in debentures after giving notices to debenture-
holders;
(c) issue of new debentures in place of debentures damaged or
destroyed ;
(d) converting one class of debentures into another bearing a
different rate of interest ;
(e) inspection of the account books and proceeding of 1“Gram
Vikas Bank” ;
(f) submission of return and reports by 1“Gram Vikas Bank” in
respect of their transactions ;
(g) periodical settlement of accounts between 1“Gram Vikas
Bank” and the Uttar Pradesh State Co -operative 1“Gram Vikas Bank”,
and for the payment of the amounts recovered by the 1“Gram Vikas
Bank” on mortgages transferred or deemed under section 12 to have
been transferred to the 1“Uttar Pradesh Gram Vikas Bank” ;
(h) specifying the f orm in which application to 1[Gram
Vikas Bank] or to the 1[Uttar Pradesh Sahkari Gram Vikas Bank]
1. Subs. by sec. 13 of U. P. Act no. 16 of 1989.
2. Subs. by sec. 4 of U. P. Act no. 19 of 1994.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
for loans should be made and the procedure to be followed in the
advancement of such loan ;
(i) Valuation of the properties offered as security for loans ;
(j) investment of moneys realized from mortgagors ; and
(k) generally for any other matter in respect of which the Board
considers the provision should be made for the purposes of this Act ;
Provided that the regulations framed under clause (i) shall be
subject to the approval of the State Government.
Power of
State
Government
to make
rules
30. (1) The State Government may, after publication in the
Gazette, make rules generally for carrying out the purposes of this
Act, 1[including any rules prescribin g fees in respect of any proceedings
under this Act.]
(2) In particular and without prejudice to the generality of the
power under sub- section (1) the State Government may make rules
providing for all or any of the following matters—
(a) the procedur e for the distraint and sale of produce of land
mortgaged to a 2[Gram Vikas Bank];
(b) the procedure for sale of property mortgaged to a 2[Gram
Vikas Bank];
(c) fixing the percentage under clause (c) if sub -section (3) of
section 6 for determining the li mit of the debentures issued by the
Board;
(d) laying conditions under which the maximum amount of
guarantee given by State Government under sub -section (1) of section 8
may be increased, withdrawn, restricted or modified ;
(e) any other matter which has to be, or may be, prescribed.
(3) All rules made under this section shall, as soon as may be,
after they are made, be laid before each Hous e of the State Legislature
while it is in session, for a total period of not less than 14 days
extending in its o ne session or more than one successive sessions and
shall, unless some later date is appointed, take effect from the date of
their publication in the Gazette, subject to such modifications or
annulments as the two Houses of the Legislature may agree to make, so
however that such modification or annulment shall be without prejudice
to the validity of anything previously done thereunder.
Trustee and
other to be
public
servant Act
V of 1860
31. The Trustee, the Registrar, any person authorized by the
Registrar to distrain and sell property under sub- section (2) of section
15 or a Receiver appointed under section 21 shall be deemed to be a
public servant within the meaning of section 21 of the Indian penal
Code.
Public
servants
not to bid
at sale
32. No public servant referred to in section 31 shall purchase or
bid for any movable or immovable property sold under the provisions of
this Act.
————
1. Ins. by sec. 10 of U. P. Act no. 3 of 1979.
2. Subs. sec. 4 by U. P. Act no. 19 of 1994.
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[The Uttar Pradesh Sahkari Gram Vikas Banks Act, 1964]
Note :–
By section 4 of U.P. Act No. 19, 1994, w herever in any
sections of the principal Act –
(a) the words ‘ ‘Sahkari Krishi Evam Gramy a Vikas Bank’’ or
its grammatical variation occurs the words ‘‘Sahkari Gram Vikas
Bank’’ or its corresponding grammatical variation, as the case may be,
shall be substituted.
(b) the words ‘‘Rajya Krishi Evam Gramya Vikas Bank’’
occurs, the words ‘‘Uttar P radesh Gram Vikas Bank’’ shall be
substituted.
(c) the words ‘‘Krishi Evam Gramya Vikas Bank’’ or its
grammatical variation occurs the word ‘‘Gram Vikas Bank’’ or its
corresponding grammatical variation, as the case may be, shall be
substituted.
(d) the wo rds ‘‘Uttar Pradesh Rajya Sahkari Krishi Evam
Gramya Vikas Bank’’ occur, the words ‘‘Uttar Pradesh Sahkari
Gram Vikas Bank’’ shall be substituted.
172