The West Bengal Agricultural Credit Operations Act, 1973

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal . Act XXXIV of 1973 
THE WEST BENGAL AGRICULTURAL CREDIT 
OPERATIONS ACT, 1973: 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 8th August, 1973.] 
8th August, 1973.] 
An Act to make, provisions for facilitating agricultural development 
through credit agencies. 
WHEREAS it is expedient to make provisions for facilitating agricultural 
development through credit agencies and for matters connected therewith; 
It is hereby enacted in the Twenty-fourth Year of the Republic of 
India, by the Legislature of West. Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Agricultural Credit 
Operations Act, 1973. 
(2) It extends to the whole. of West Bengal. 
(3) This section shall come into force at once and the remaining 
sections shall come into force on such date or dates and in Such area 
or areas as the State Government may, by notification in the Official 
Gazette, appoint. 
Short title, 
extent and 
commence-
ment. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "agriculture" or "agricultural purpose" includes making 
any land fit for cultivation, cultivation of land, improvement 
of land, development of the sources of irrigation, raising and 
harvesting of crops, pisciculture, sericulture, horticulture, 
forestry, animal husbandry, dairy farming, seed farming, 
piggery, poultry farming and also includes storage, transport 
and marketing of agricultural produce, the acquisition of 
machineries and implements for agricultural purposes and 
such other purposes as the State Government may, by 
notification in the Official Gazette, specify; 
(b) "agriculturist" means a person who holds land for any 
agricultural purpose or who is engaged in agriculture and 
includes a bargadar; 
123 
The West Bengal Agricultural Credit Operations Act, 1973. 
[West Ben. Act 
(Section 3.) 
(c) "co-operative society" means a co-operative society 
registered under the Bengal Co-operative Societies Act, Ben. Act 
1940, and includes a co-operative land mortgage bank; 	 XXI of 1940.  
(d) "credit agency" means— 
(i) a bank included in the Second Schedule to the Reserve 
Bank of India Act, 1934; 	 2 of 1934. 
(ii) the State Bank of India constituted under the State 
Bank of India Act, 1955; 	 22 of 1955. 
(iii) 'a Subsidiary Bank' as defined in the State Bank of 
India (Subsidiary Banks) Act, 1959; 	 33 of 1959. 
(iv) 'a corresponding new bank' as defined in clause (d) 
of section 2 of the Banking Companies (Acquisition 
and Transfer of Undertakeings) Act, 1970; and 	 5 of 1970. 
(v) any other financial institution notified by the State 
Government as a credit agency for the purposes of 
this Act; 
(e) "crop loan" means a loan advanced to an agriculturist for 
the purpose of financing seasonal agricultural operation or 
the marketing of crop and is recoverable within fifteen 
months from the date of advancement of such loan; 
(f) "financial assistance" means assistance granted by a credit 
agency in favour of an agriculturist by way of loan, advance, 
guarantee or otherwise for agricultural purposes; 
"land"— 
(i) includes the crops standing thereon, and 
(ii) in the case of a bargadar means his share of produce 
on such land; 
(h) "prescribed" means prescribed by rules made under this 
Act; 
(i) "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. 
(g) 
Removal of 
restrictions 
on 
alienation. 
3. (1) Notwithstanding anything contained in any other law for the 
time being in force or in any custom or usage having the force of law, 
it shall be lawful for an agriculturist to alienate his land and execute a 
charge or mortgage on such land in favour of a credit agency, as security 
for the financial assistance given to him by such credit agency. 
124 
The West Bengal Agricultural Credit Operations Act, 1973. 
XXXIV of 1973.] 
(Sections 4, 5.) 
(2) Notwithstanding anything contained in the Bengal Co-operative 
Societies Act, 1940, no mortgage or charge executed by an agriculturist 
in favour of a co-operative society in respect of a loan advanced to him 
by such co-operative society shall have priority over an earlier mortgage 
or charge of the kind referred to in sub-section (1). 
4. Notwithstanding anything contained in any other law for the Charge on 
time being in force or in any custom or usage having the force of law, cZ ePrand  
it shall be lawful for an agriculturist to create a charge on the movable movable 
property owned by him or on the crops raised by him, standing or FarZe urrtoYfina otherwise or other produce from land cultivated by him, to the extent credit agency. 
of his interest therein, in favour of a credit agency notwithstanding that 
he may not be the owner of the land on and from which the crop in raised. 
5. (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 the same land both in favour 
of a credit agency and in favour of any person then the mortgage or 
charge executed in favour of a credit agency shall have priority over the 
mortgage or charge in favour of such person irrespective of the fact 
whether the mortgage or charge in favour of the credit agency 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 agriculturist in favour of,— 
(i) the State Government, 
(ii) a co-operative society, and 
(iii) one or more credit agencies, 
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 chatges have been executed 
by an agriculturist in respect of the same land for obtaining crop loan 
from one credit agency and a subsequent term loan from another credit 
agency then the mortgage or charge in relation to the subsequent 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 credit agency 
providing the crop loan. 
Priority of 
mortgages and charges. 
125 
The West Bengal Agricultural Credit Operations Act, 1973. 
[West Ben. Act 
(Sections 6-10.) 
Mortgage 
and charge 
on land in 
favour of a 
credit agency 
by 
declaration. 
6.. (1) Notwithstanding anything contained in any other law for the 
time being in force, an agriculturist who seeks to obtain financial assistance 
from a credit agency for carrying out any agricultural purpose shall, by 
a declaration submitted in such form and in such manner as may be 
prescribed, mortgage or charge the land owned by him as security for 
such financial assistance. 
(2) Notwithstanding anything contained in the Registration Act, 16 of 1908 .  
1908, a mortgage of charge executed by an agiculturist through the 
declaration made under sub-section (1) shall be deemed to have been 
duly registered in accordance with the provisions of the said Act with 
effect from the date on which such mortgage or charge was executed 
provided that the credit agency shall forward, within such time and in 
such manner as may be prescribed, a copy of the declaration whereby 
the mortgage or charge was executed, to the Registering Officer within 
the local limits of whose jurisdiction the whole or any part of the property 
mortgaged or charged is situate and the Registering Officer shall file the 
said copy in his Book No. 1 prescribed under section 51 of the said Act. 
(3) For the removal of doubts it is hereby declared that no duty under 
the Indian Stamp Act, 1899 or fee under the Registration Act, 1908 shall 2 of 1899. 
be payable on a declaration referred to this section. 
Recovery of 	 7. Any amount due from an agriculturist towards the financial dues of a 
credit 	 assistance given to him by any credit agency shall be recoverable as an 	 Ben. Act III 
agency as an arrear of land revenue under the Bengal Public Demands Recovery Act, of 1913. 
arrear of 1913: land 
revenue. 
Amendment 	 8. For the purposes of this Act any reference to Court in section 
of section 8 8 of the Hindu Minority and Guardianship Act, 1956 shall be construed of Act 32 of 
1956. 	 as reference to the ,Collector and the appeal against the order of the 
Collector shall lie to the Commissioner. 
Exemption 9. It is hereby declared that nothing contained in section 14M of 
the West Bengal Land Reforms Act, 1955, shall apply to any land owned West Ben. 
Act X as a raiyat by a credit agency. 	 1956. of  
Power to 
make rules 
10. (1) The State Government may, by notification in the Official 
Gazette, make rules for carrying out the purposes of this Act. 
126 
The West Bengal Agricultural Credit Operations Act, 1973. 
XXXIV of 1973.] 
(Section 10.) 
(2) In particular and without prejudice to the generality of the 
foregoing powers, such rules may provide for all or any of the following 
matters, namely:— 
(a) the form and manner of submitting declaration under sub-
section (1) of section 6; 
(b) the time within which and the manner in which the copy 
of the declaration referred to in sub-section (2) of section 
6 shall be forwarded to the Registering Officer; 
(c) any other matter which may be or is required to be prescribed. 
127 

‹ Prev All West Bengal acts Next ›