Amendment status not verified — confirm the current text below against the official source.
Certificates of purchase, delivery of property and title to purchaser. - Where a sale of mortgaged property has become absolute the Bank shall grant a certificate to the purchaser, in the prescribed form, specifying the property sold, the sale-proceeds, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale become absolute and upon the production of such certificate, the Sub-Registrar appointed under the Indian Registration Act, 1908 (16 of 1908) within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated shall enter a copy of such certificate in the relevant book maintained for such purpose. (2) Where a mortgaged property is sold under the provisions of this Chapter and a certificate is granted to the purchaser under the provisions of sub-section (1), Collector shall, on the application of the purchaser, his, their or successor-in-interest, order delivery of possession to be made to such a person and shall put in possession such a person or his nominee. 44AA. Title of purchaser not to be questioned on ground of irregularities, etc. - Where any property is sold in exercise of power of sale under this Chapter, the title of the purchaser shall not be questioned on the ground that- (a) the circumstances required for authorising the sale had not arisen; (b) due notice of the sale was not given; or 28/46 (c) the power of sale was otherwise improperly or irregularly exercised; but any person who has suffered any damage by an unauthorised, improper or irregular exercise of such power is entitled to have a remedy in damage against the Land Development Bank. 44AB. Mortgage not to be questioned on insolvency of mortgagor. - Notwithstanding anything in any law relating to insolvency, a mortgage executed in favour of a Land Development 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 Land Development Bank a preference over the other creditors of the mortgagor. 44AC. Appointment of receiver and his powers. - (1 )The Board may, of its own motion or on the application of a primary Land Development Bank and under circumstances in which the power of sale conferred by Section 44-U may be exercised, appoint in writing a person other than member of the managing committee of the Land Development Bank concerned to be the receiver of the produce of and income of the mortgaged property or any part thereof and such receiver shall be entitled either to take possesson of the property or collect its produce and income, or both, as the case may be, to retain out of any money realised by him in expenses or management including his remuneration, if any, as fixed by the Board and to apply to balance in accordance with the provisions of sub-section (8) of Section 69-A of the Transfer of Property Act, 1882 (4 of 1882). (2) The Board may, for sufficient cause; remove such receiver on an application made by the mortgagor and fill the vacancy in the office of the receiver. (3) 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 competent court. 44AD. Restrictions on leases. - (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882), or any other law for the time being in force, no mortgagor of property mortgaged to a Land Development Bank shall, except with the prior consent in writing of the bank and subject to such terms and conditions as the bank may impose lease or create to any tenancy rights or any other right, title, or interest in any such property: Provided that the rights of the Land Development Bank shall be enforceable against the lessee or the tenant, or any other person, as the case may be, as if he himself were a mortgagor. (2) Where the land, mortgaged with possession to a Land Development Bank, is in actual possession of a tenant, the mortgagor or the Land Development Bank shall give notice to the tenant to pay rent to the Land Development Bank during the currency of the lease and the mortgage and on such notice being given, the tenant shall be deemed to have attorned to the Land Development Bank. 44AE. Registration of documents executed on behalf of a Land Development Bank. - (1) Notwithstanding anything in the Indian Registration Act, 1908 (16 of 1908), it shall not be necessary for any officer of a Land Development Bank to appear in person or by any agent at any registration office in any proceedings connected with the registration of any instrument executed by him in his official capacity or to sign as provided in Section 58 of that Act. (2) Where any instrument is so executed, the Registering Officer to whom such instrument is presented for registration may, if he thinks fit, refer to the aforesaid officer of the Land Development Bank for any information in respect thereof and on being satisfied of the execution thereof, shall register the instrument. 29/46 44AF. Delegation of certain powers by Board. - The Board if it thinks fit, may delegate all or any of its powers under Sections 44U, 44W, 44X or 44AC to an Executive Committee consisting of three or more of its members constituted by it. 44AG. Provisions of the Transfer of Property Act, 1882 to apply to notice under this Chapter. - The provisions of Sections 102 and 103 of the Transfer of Property Act, 1882 (4 of 1882) and of any rule made by the High Court under Section 104 of that Act for carrying out the purposes of the said sections shall apply so far as may be, in respect of all notices to be served under this Chapter. 44AH. Board's power of supervision over Primary Co-operative Land Development Banks. - Subject to the provisions of this Act, the Board shall have such powers of supervision over the Primary Co-operative Land Development Banks, including powers of inspection of account books and proceedings of such bank, as may be prescribed by rules. 44AI. Power to make rules. - The State Government may, after previous publication, make rules for carrying into effect the purposes of this Chapter. (2) Such rule may provide for all or any of the following matters, namely:- (a) the manner of effecting distraint under this Chapter, the custody, preservation and sale of distrained property, immediate sale of perishable articles where such articles are distrained; (b) conduct of the sale of the property mortgaged to Land Development Banks, appointment of sales officers, recovery of expenses of such sale, deposit of the purchase money in connection therewith and resale of the mortgaged property where purchase money is not deposited in sale proceedings; (c) submission of returns and reports by primary Co-operative Land Development Bank to the State Co-operative Land Development Bank in respect of their transactions periodical statement of accounts between the Primary Co-operative Land Development Banks and the State Cooperative Land Development Bank, payment of amount recovered by the Primary Co- operative Land Development Bank on mortgages transferred of the State Co-operative Land Development Banks the form in which application to Land Development Banks for loans may be made, the properties offered as security for such loans the investment of money realised by Land Development Banks from the mortgagors and matters generally relating to the conduct of business of Land Development Banks; and (d) all matters expressly required or allowed in this Chapter to be prescribed by rules.] [CHAPTER VI-B] Co-operative Banks 44AJ. Application of the Chapter to Co-operative Banks. - (1) The provisions of this Chapter shall apply to a Co-operative Bank as defined in the Deposit Insurance Corporation Act, 1961 (47 of 1961) in addition to the provisions contained in other parts of this Act, where any question of apparent or implied inconsistency arises, the provisions of this Chapter shall prevail over the provisions of the other parts of this Act. (2) For the purposes of this Chapter, 'Deposit Insurance Corporation means the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961 (47 of 1961) and 'Reserve Bank' means the Reserve Bank of India established under the Reserve Bank of India Act, 1934 (2 of 30/46 1934). 44AK. Division, amalgamation, compromise, etc. - (1) No order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or of division or transfer of assets and liabilities of a Co-operative Bank shall be made without the previous sanction in writing of the Reserve Bank. (2) Where an order of moratorium has been made by the Central Government under sub-section (2) of Section 45 of the Banking Regulation Act, 1949 (10 of 1949) in respect of a Co-operative Bank, the Registrar, with the previous approval of the Reserve Bank in writing may during the period of moratorium, prepare a scheme,- (i) for the re-construction of the Co-operative Bank; or (ii) for its amalgamation with any other Co-operative Bank (herein referred to as the transferee Bank). (3) Notwithstanding anything to the contrary contained in this Act where a Cooperative Bank being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961 (47 of 1961) is amalgamated or in respect of which a scheme of compromise or arrangement or of reconstruction has been sanctioned and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank, under sub-section (2) of Section 16 of the Act, the bank with which such insured bank is amalgamated or, the new Co-operative Bank formed after such amalgamation or, as the case may be, the insured bank or the transferee bank shall be under an obligation to repay the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in Section 21 of that Act. 44AL. Supersession of Managing Committee of Co-operative Bank. - Notwithstanding anything contrary contained in this Act Registrar shall if so required in writing by the Reserve Bank in public interest or for preventing the affairs of the Co-operative Bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the Co-operative Bank; pass an order for the supersession of the managing committee or other managing body (by whatever name called) of that Co-operative Bank and appointment of an administrator therefore, upon such terms and for such periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank. 44AM. Reserve Bank's sanction or requisition for winding up order. - (1) Notwithstanding anything to the contrary contained in this Act, no Co-operative Bank shall be wound up except with the previous sanction in writing of the Reserve Bank. (2) Notwithstanding anything to the contrary contained in this Act, the Registrar shall make an order for the winding up of a Co-operative Bank if so required by the Reserve Bank in the circumstances mentioned in Section 13D of the Deposit Insurance Corporation Act, 1961 (47 of 1961.) 44AN. Reimbursement to Deposit Insurance Corporation. - Where a Cooperative Bank, being an insured bank within the meaning of Deposit Insurance Corporation Act, 1961 (47 of 1961) is wound up or is taken into liquidation and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (1) of Section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed in the circumstances to the extent and in the manner provided in Section 21 of that Act. 44AO. Finality of the Reserve Bank's sanction or requisition. - Notwithstanding anything to the 31/46 contrary contained in this Act where with the previous sanction in writing or on the requisition of the Reserve Bank- (i) an order for the winding up of the co-operative bank is made, or (ii) in respect of which a scheme of compromise or arrangement or of reconstruction or amalgamation is made, or (iii) in respect of which an order for the supersession of its managing committee or other managing body (by whatever name called) and the appointment of an administrator therefor has been made, no appeal or revision or review there against shall lie or be permissible and such sanction or requisition of the Reserve Bank shall not be liable to be called in question in any manner.] [CHAPTER VI-B] Special provisions for primary agricultural credit society, farmers service society and multipurpose co-operative society 44AP. Provisions of this Chapter to apply to Agricultural Credit Society. - The provisions contained in this Chapter shall apply only to primary Agricultural Credit Society, the Farmers Service Society and the Multipurpose Co-operative Society. 44AQ. Power of Registrar to order liquidation of Societies and amalgamation of several Societies. - (1) Notwithstanding anything to the contrary contained in the Act where the Registrar is satisfied that, in the interest of the Cooperative Movement or for the purpose of securing proper management of Cooperative Societies or for the reason that the society has not been working as a viable unit or has incurred bad debts or has remained inactive, it is necessary to liquidate a society he may, by an order published in the official Gazette, direct for the liquidation of the society and shall appoint person or persons for carrying out the functions of the liquidator as laid down in section 44. (2) Where in the opinion of the Registrar, or an officer authorised by the Registrar to act on his behalf (who shall not be below the rank of the District Cooperative Officer), amalgamation of two or more primary agricultural societies is necessary in order to improve the working of such society or for increasing their strength or usefulness, he may by an order, notwithstanding anything to the contrary contained in this Act, direct the amalgamation of two or more such societies, within such time as may be specified therein, into one single society and register the same as a new society. (3) The societies which are amalgamated under sub-section (2) shall be deemed to have been dissolved and shall, cease to exist and the membership thereof shall stand transferred to. and all the assets and liabilities thereof shall vest, in the new society formed by amalgamation of two or more societies: Provided that State Government may from time to time, declare a moratorium on the liabilities of the societies so amalgamated. (4) Upon the amalgamation of societies and establishment of a new society, the Registrar shall, for purposes of managing the affairs of the new society, depute an officer of the State Government subordinate to him, till such time as a new managing committee is constituted and the officer so deputed shall exercise such powers and perform such functions as may be prescribed. (5)The Registrar may by an order in writing and published in the official Gazette determine the local limits of the new society established after the amalgamation of several societies. 32/46 (6) Every family residing within the local limits of the new society determined under sub-section. (5) shall be represented by at least one adult member of the family who shall be a normal or associate member of the society and shall be entitled to a right of voting if he pays a membership fee of Re. 1 and may become a full-fledged member of the society if he purchases at least one share of the society and he shall be entitled to receive loan therefrom and shall also be eligible to hold any elective post of the society. 44AR. Appeal from the order of the Registrar. - Any person aggrieved by the liquidation under sub- section (1) of Section 44AO or by amalgamation or establishment of new societies and the registration there of under sub-section (2) of the said section may file a representation before the State Government against the order of the Registrar within thirty days of the date of order and the State Government may, after hearing the objections, pass such orders as may be deemed fit and the order of the State Government thereon shall be final and shall not be called in question in any Court of law. 44AS. Election of new society formed after amalgamation. - The election of the new society established under sub-section (2) of Section 44AQ shall be held within a period of six months from the date of registration of the society unless, for special reasons to be recorded in writing, the State Government may extend the period by another six months.] CHAPTER VII Penalties and Procedure,