Amendment status not verified — confirm the current text below against the official source.
The word "mortgaged" omitted vide H.P. Act No 16 of 1987, effective from 16th November, 1987. 28 THE HIMACHAL PRADESH CO-OPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANKS ACT, 1979 may direct the committee of a 1[Primary Agriculture and Rural Development Bank] to take action against a defaulter under 2[section 22 or section 23], or section 26 and if the committee neglects or fails to do so, the Board or the trustee may take such action. (2) (a) Where such action is taken by the Board the provisions of this Act and of any rules or regulations made thereunder shall apply in respect thereto as if all references to the 3[Primary Agriculture and Rural Development Bank] and to its committee in the said provisions were references to the State Bank and the Board respectively. (b) Where such action is taken by the trustee, the provisions of this Act or any rules or regulations made thereunder shall apply in respect thereto as if all references to the 4[Agriculture and Rural Development Bank] or to its committee in the said provisions were references to the trustee. 5[40. Gehan or mortgage or hypothecation not to be questioned in in insolvency proceedings.- Notwithstanding anything contained in the Insolvency Act, 1955 (2 of 1956), a Gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank shall not be called in question on the ground that it was not created or executed in good faith or for valuable consideration or on the ground that it was created or executed in order to give such bank a preference over the other creditors of the person who created the gehan or executed the mortgage or hypothecation.