Amendment status not verified — confirm the current text below against the official source.
First charge of Co-operative societies on certain assets.-(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the State Government in respect of land revenue or any money recoverable as arrears of land revenue or to any of claim of a development bank arising out of a loan granted at any time whatsoever under the Madhya Pradesh Sahkari Bhumi Vikas Bank Adhiniyam, 1966 (No. 28 of 1966), or by a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandha (Bank) Adhiniyam, 1972 (No. 32 of 1973), any debt or outstanding demand owing to a society by a member or past member or deceased member shall be first charge in favour of the society on- (a) the land owned by such member or past member or forming part of the estate of the deceased member, as the case may be; and (b) his interest in any land as a tenant if such member owns such interest; against which such debt was granted or such outstanding demand stands, for and to the extent of the debt, or outstanding demand owing by him: Provided that where any prior claim of the State Government arises out of the loan granted under the Land Improvement Loans Act, 1883 (No.19 of 1884), and such loan is granted after the grant of loan by a society, the loan granted by the society shall, notwithstanding anything contained in the said enactment, have priority over such claim of the Government. (2) No member shall alienate the whole or any part of the land or interest therein which is subject to charge under sub-section (1) until the whole amount borrowed by the member together with interest is paid in full: Provided that it shall be lawful for a member or a past member to mortgage in favour of- (i) a Co-operative Land Development Bank; or 31 (ii) a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandha (Bank) Adhiniyam, 1972 (No.32 of 1973); or (iii) the State Government such land or any part thereof under the rules made under the Madhya Pradesh Irrigation Act, 1931 (No.3 of 1931), for supply of water from a canal to such land or any part thereof. (3) Any alienation made in contravention of the provisions of sub- section(2) shall be void as against any claim of the society in respect of the loan taken from it under this section. (4) Intimation in writing shall be given to the Tahsildar about the details of the debt or outstanding demand owing to the society from a member, past member or deceased member in the prescribed manner and the Tahsildar shall on receipt of such information, have it entered in the Record of Rights. 41-A. Right of society to acquire and dispose of immovable property.- (1) Notwithstanding anything contained in any law for the time being in force, a society shall have power to itself to acquire agricultural land or interest therein, or any immovable property which has been charged or mortgaged to it by a member 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 society the money due to it: Provided that only such portion of the property shall be sold as may be reasonably sufficient to satisfy the debt and interest thereon. (2) A society which acquires land or interest therein or any other immovable property in exercise of the power vested in it under sub-section (1) may dispose it of by sale within a period to be specified by the Registrar in this behalf. (3) If the society 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 lessee 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 society of land or interest therein in terms of this section shall be subject to the provisions of any other law for the time being in force providing for restrictions on purchase of land by non-agriculturists or in excess of ceiling limits or involving fragmentation of land below a specified limit. (5) The provisions of sub-section (6) of section 165 of the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959), shall apply for sale of any land or interest therein of a person belonging to an aboriginal tribe to a person not belonging to such tribe. (6) Nothing in the Madhya Pradesh Ceiling on Agricultural Holdings Act, 1960 (No.20 of 1960) shall apply to a society acquiring land under sub-section (1) and holding such land till such time as the society is in a position to sell the land in the manner provided in this section or otherwise, at a price which is adequate to cover its dues.