The Kerala State Co-operative Agricultural Development Banks Act, 1984 (Act 20 of 1984)

• - ----- 12B 'l'liE KERALA STATE CO-OPERATIVE AGRICULTURAL DEVELOPMENT BANKS ACT, 1984 Preamble Seclwns (Act 20 of 1984) CONTENTS 1. Short t1tle, extent and 't!ommencement. 2. Defimtwns. 3. Issue of debentures by Board 4. Power to borrow money by 1ssue of bonds or by way of loans. 5. Appomtment and powers and functwns of Trustee. 6. Guarantee by Government on prmcipal of and mterest on debentures, bonds and loans. ,.. I. Power of Board to make regulatwns for purposes of this Chapter. · • 8. Power of Agricultural Development banks to advance loans. 9. S~cunty for loans. 10. Charge on movable or munov'able property of borrower for amounts borrowed. 11. Apphcant for lQan from pnmary bank to furmsh declaration. 12. Pnority of Gehan, mortgage and hypothecation. · 13. Transfer and vesting gehan, mortgage and hypothecation w1th Agricultural Development Bank. 14. Money borrowed for development of land. 15. Loans to persons having restncted r1ghts of transfer. 16. Distramt .when to be made. 17. 18. 19. 20. 21. Distramt how to be effected. Sale of property d1strained. Power oi sale of property charged without mtervcntwn \.. of court. .e-. Applicat11.m for sale and manner of sale. Apphcatwn to set as1de sale on deposit and confirmation of sale m default or on dismissal of such application. . . 129 22. Distribution of sale proceeds. ~3. Certificate to purchaser . .t1. Delivery of property to purchaser. 25. R1ght of Agncultural Dev~lopment Bank or Primary Bank to purchase _property at sale. 26. Appointment of receiver and his powers 27. Title of purchaser not to be 1mpeached on the ground of irregularity etc. 28. Appomtment of sale officer 29. Powers' of AgriCultural DevelopmE"nt Bank m case security property 1s insufficient. • 30 Power of Board or Trustee to dirt.ct distraint and sale of produce and sale .of mortgaged property etc · 31. Banks nght to Improvements effected after Geban or mortgage or hypothecation. 32 33. 34. 35. 36. Peduction from sale proceeds of ·agricultural produce m certain cases. Gehan or mortgage or hypothecatlon not to be questioned in insolvency proceedings. • · Right of Agnculttiral Development Bank to pay pr10r debts. . Power to summon witnesses and requisition of documents. Registration of documents executed on behalf of the Agn cultural Development Bank or Primary Bank. 37. Power of Primary Bank to receive money and grant valid discharges. 38. Proof of documents or entnes m documents. 39. Chapters IV and V to apply to loans advanced by primary banks from funds not borrowed trom Agricultural Develop· ment Bank. - 40. Service of notiCes und~r the Act. -11. - . Sections 102, 103 and rules under section 104 of the Transfer of P~operty Act, 1882 to apply to notices under the Act. 42. Officers of bank not to bid at sales. 43. Delegation of powers by Board . • 4. 4 Startmg of branch banks. • S4i3258i85!MC. • 1:.10 . 45. Power of Board to admit members. 46. Primary agricultural credit societies to be admitted as members of Primary banks in certain cases. 4 7. Transfer of assets and habihties of the Kerala Co-operative Central Land Mortgage Bank and Primary Land Mortgage Banks. 48. Power of Board to make regulations. 49. Cognisance of offences. 50. Power to make rules. 51. Power to make rules. Mortgage Bank to contmue in that Bank. 52. Repeal and Savmgs. • r: I I ~ l 1 . I I ' I ~· I ' • 131 . THE KERALA STATE CO-OPERATIVE AGRICULTURAL DEVELOPMENT BANKS ACT, 1984• (Act 20 of 1984) -· An Act to factlitate the more efficwnt working of Co-operatwe Agricultural Development Banks in the State of Kerala Preamble.-WHEREAS 1t is expedient to facilitate the more efficient working of the Co-operative Agricultural . Development Banks m the State of Kerala; ' BE it enacted in the Thirty-fifth Year of the Republic of India as follows:- • CHAPTER I PRELIMINARY L Short title, extent and commence·ment.-(1) This Act may . be called the Kerala State Co-operative Agricultural Development »~ Hanks Act, 1984. __.. (2~ It extends to the whole of the State of Kerala. (3) It shall come into force at once. 2. Defimtwn.-In this Act, unless the context otherwise requires,- ( a) "Agricultural Development Bank" means the Kerala Co-operative Ce.ntral Land Mortgage Bank Limited, registered under sectwn 10 of the Travancore-Cochin Co-operative Societies Act, 1951 (X 0f 1952), which shall her~after be kiwwn as the "Kerala State Co-operative Agricultural Development Bank Limited"; (b) "Board" means the board of directors of the Kerala State Co-operative Agricultural Development Bank Limited; (c) "Committee" in relation to a primary bank, means the­ board of directors or board of management or the committee of management or the governing body to which the management of its I affairs is entrusted; ~Received the nssent of the President on the 30th day of July, 1984 and published In the Kcrala Gazette Extraordinary ~o. 764 dated the 29th August, 1:~84 {d) ''co-operative society", means a co-operative society registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969) ; · (e) "Gehan" means a special charge on movable or im­ movable property, 111 favour of the Agricultural Development Bank or a primary bai•k by a mere declaration in writing by the borrowers tor ::;ecurmg the payment of money advanced or to be advanced by way of loan, wh1ch. will have all the characteristics of a valid mortgage; · (f) ·"prescribed" mean::; pre1cnbed. ·by rules made under this Act;· (g) "primary agricultural credit society" means a co­ operative society, majority of the members of which are agriculturists and the principal obJect of which ts the 1a1sing of funds for lending to its members primarily for agncultur~ :md alhed purposes, (h) "primary bank" means a co-operative society registered under lhe Kcrala Co-operative Societies Acl, 1969 (21 of 1969), as a Primary Co-operative Agricultural Development Bank Limited and · admitled as a member of the Agncultural Development Bank and mcludes a co-operative society regtstered or deemed to be registered under the said Act as a Primary Co-op2rat1ve Land Mortgage Bank Limited and admitted ·as a member of the Kerala Co-operative Central Land Mortgage Bank Limited which shall hereafter be ltnown as ::J. Primary Co-operative Agricultural Development Bank Limited; (i) ''Registrar" means the Reg1strar of Co-operative Socir- .. tles appointed un,der sub-section (1) of section 3 of the Kerala Co-operative Societies Act, 1969 (21 of 1969); (j) ''State" means the State of _Kerala, (k) "Trustee" mean., the Trustee referred to in sectiOn 5. CHAPTER U DEBENTURES . . i Issue of debenturea by Boa.r<J.-(1) With the previous ' ' I i I sancL1 m of the Trustee, the Board may issue debentures of one or \__ more denominations f.Or such period as It may deem expedient on J--_ the security of Gehan or mortgage 01· hypothecatfon held or mortgages, charges or hypothecation partly held and partly to be acquire~ or other assets taken by, the Agricultural Development 133 Bank and its other assets and Gehan or mortgages or hypothecation transferred or deemed under the provisionR of sect1on 13 to have been transferred by the pnmary banks to the Agricultural Develop­ ment Bank. • . (2) Notwithstanding anything contained in sub-section (1). m respect of loans guaranteed by the Government and granted to any person or to any body of persons, whether incorporated or not, and whether or not established by or under any law for the time . belllf; m force, 1f such a body is approved by the Government, the .Hoard may, w1th the previous permission of the Trustee, issue debentures, . on the strength of such Government guarantee and wtthout the security of Gehan or mortgages or hypothecation and other assets, of one or more denommations, for such periods as it may deem expedient and subject to such conditions as the Govern­ ment may think fit to impose. (3) The debentures 1ssued under sub-section (2) may contain a term fixing a period not exceedmg thmty years from the date of tssue during which' they shall be irredeemable or reserving to the Hoard the right to call in; at any time, any of the debentures m. advance of the date fixed for redemption after gwmg the debenture holder concerned not less than three months' notice in Writmg. , . . ( 4) The total amount due on the debentures issued by the Hoa.rd and outstanding at any time, shall not exceed the aggregate ot the amounts clue on the Gehan or mortgages or hypothecation and other assets and Government guarantee referred to m sub­ section (2) and ihe.amounts paid thereunder and remaming m the 11ands of the Board or of the Trustee at suc.h time. 4. Power to borrow money by i.ssue of bo~ or by way of loans.-(1) Notwithstanding anything contained in the Kerala Co­ operative Societies Act, 1969 (21 of 1969), the Board may, witb the • prwr approval of the Government and subject to the regulations made under this Act, borrow money by issue of bonds: • I • • Provided that the issue of the bonds shall be in conformity with such directions or instructions as may' b~ issued by the Reserve Bank of India or the' National Bank for Agricultural and Rural IJcvelopment from time to time. (2) The bonds shall be in the form of promissory notes and shall be repayable on the expiry of such period or periods from the date of issue thereof as may be approved by the Reserve Bank of lnd1a or the Nati0nal Bank for Agricultural and Rural Development: Provided that the Board may repay the amount due under the bonds at any time before ~he period or periods so fixed, after issuing • a notice in such manner as the Board may direct in that behalf to the holders of the bonds. ' (3) Notwithstanding anything contained m the Kerala Co- -)",.. operative Societies Act, 1969 (21 of 1969), the Board may borrow ' money by way of loans from the Government, the National Bank tor Agricultural and Rural Development, the Reserve Bank of India or l;;UCh o1 her financial institutions as may be approved by the Trustee. 5. Appointment and powers and functions of Trustee.-tl) The Registrar or where the Government appoint any other pe~:son in this behalf, such person, shall be the Trustee tor the purpose of fulfilling the obligatiOns of the Agricultural Development Bank to the holders ot debentures issued by the Board and for the purposes of seclion 13. (2) The Gehan created and mortgages and hypothecation executed in favour of the Agricultural Development Bank and other Gchan, mortgages, hypothecation and asset& transferred or deemed to have been transferred under the provisions of section 13 to the Agricultural Development Bank shall vest in the Trustee from the date of such C'reatwn, execution or transfer. (3) The holders of the debentures shall have a floating charge on aU such Gehan, mortgages, hypothecation and assets, on the amounts paid under such .Gehan, mortgages, hypothecation and remai.ning in the hands of the Board or of the TrustE<> and on the other properties of the Agricultural Development Bank. ( 4) The powers and functions of the Trustee shall be governed by !.he instrument of trust executed by the Agricultural Development Bank and the Trustee, as modified from time to time by mutual agreement between the Board and the Trustee. (5) The Trustee shall be a corporation sole by the name of the Trustee for the debentures and as such shall have perpetual succes­ sion and a common seal and in his corporate name shall sue and be . ' sued. 6. Guarantee by Government on principal of and mterest on df::hent1tres, bonds and loans.-The principal of, and the interest on. th(· debentures Issued under section 3 or bonds issued or loans raised vr,der section 4, to such maximum amount as may be fixed by the Government from time to time and subject to such conditions as trf'y n •ay deem fit to impose, shall carry the guarantee of the Governntent . \ 1 ~: I 135 . 7. Power of Board to make r:egulations for purposes of thi3 Chapter.-The Board may, subject to the approval of the Trustee, makt> regulations not inconsistent with the provisions of this Chapter-- ( a) for fixmg the period of debentures and the rate of mterest payable thereof; (b) for calling in debentures after g1vmg notice to debenture holuers; (c) for the issue of new debentures in place of debentures damaged c •r destroyed; (d) for converting one class of debentures into another class ot debentt1res bearing a different rate of interest; and . (e) generally for carrying out, the provisiOns of this Chapter. CHAPTER III LOANS · ~.. 8. Pov;ers of agricultural development banks to advance • toum;.-Subject to the provisions of this Act and the rules made thereunder, It shall be competent for the Agricultural Development Bank and the primary banks to advance loans for the following purposes, namely:- • (a) land improvement and productive purposes; Explanation.-Land Improvement and productive purposes, mean any work, construction or activity which adds to the pro­ ductivity of the land and, in particular, includes the followmg, that 1s to say,- (i) construction and repair of wells (surface wells, dug-cum­ bore wen;, tube wells and filter pomts J, tanks and other works for the exploitation of surface and ground water and a:;torage, supply or distrdbution of water for the purposes of agriculture, or for the use of cattle employed in agriculture ,and all types of 1rrigation; (ii) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto; (iii) preparation of land for irrigation; (iv) drainage, reclamation from rivers or other waters, or protection fl'Om floods or from erosion or other damage by water, • • • \ di.J of land used for agricultural purposes or waste land whxch is cultivable; ( v) bundmg, levelling, terracing and similar improvements; (vi) reclamation, clearance and enclosure or permanent im- provement of land for agricultural purpose; • . (vii) horticulture and plantations including forest plantations; • (viii) purchase of ml engines, pumping sets and electric motors for any of the purposes mentioned herein; (ix) purchase of tractors and uther agricultural machmery, (x) purchase of draught animals and bullock carts and other carts; (xi) increase of the productive capacity of land by addition to it of special variety of soil; (xii) constructiOn or repair of permanent farm houses, cattle sheds and sheds for processmg ot agr1cultural produce at any stage; • (xiii) construction of stone-fence, barbed wiring fence or any other kind of fence for production of land including eastern wall; ' lXlV) purchase of land for consohdation of holdmgs; (xv) such other purposes as the Government may spec1fy, from time to time, as land improvement and product1ve purposes for the purposes of this Chapter, by a special or general order; \ (b) development of dairy, poultry, .piggery, sheep, goat and other livestock and inland and marine fisher1es; (c) procurement of fishery requisites like fishing boats, mechanised or n'on-mechanised, fishing nets, twine, ropes and marine paint; (d) production of animal 'and poultry feed; (e) procurement and installation of eqUlpments and machi­ nery for processing, marketing and transportation of all agricul­ tural products including products of animal origin hke milk, meat, fish, eggs and manure and construction of buildings for any such purpose; (f). installation of go bar gas plants; (g) redemption of prior debts; (h) payment of purchase price by tenants for purchase of the right, title and interest of landlords under the Kerala Land Reforms Act, 1963 (1 of 1964), or compensation or other amount . I l • 137 payab1e for the purchase of rights of landlords under any law for the tlme bemg m force; (i) any other purposes conducive to agricultural develop­ ment as decided by tne Board with the approval of the Reg1strar from time to time 9. Secnnt?J for loa?><;.-(1) Sub1ect to the prov1sions of this Act the Agrkultural Developmrnt B;_:~nk ~nd the pnmary banks may advance loans to individuals a.1d mslltulions on the security of lands aPd other,: fixed assets or of assets acquired by the loans borrowed which have been hypothecated to the Agricultural Deve­ lopm~nt Bai!k or the pnmary bank, as the case may be, on the basis of pnnciples of valuat;on approved by the Registrar: Provided that the Agncultural Development Bank .and the pnmary banks may, for such purposes and for such penods as may be specified by the Government by special or general order, advance lmms without such secunty of land but on the specific gt:arantee of the Government for the repayment of the prmc1pal and payment of mterest thereon: · Prov!dcd further that "the Agncultural Development Bank and the pnmary banks may, with the prevwus approval of the Regis­ trae and sub5ect to such restrJctwns and limitations as may be prescribed, advance loans for such purposes· and for such periods as may be determmed by the Board. (2) Notw1thstandmg anythmg contamed m any other law for lhe lime bemg 111 force, the Agncultural Development Bank or n p1imary bank m"y, under any land development !>Cherne pre­ pared and app1 oved u.'der the pl'OVI5lOI!S of the Kerala Land Deve­ loplnent Act. 1964 (17 of 1964). grant or auvance loans to any per::,on or .a group of persons 'V!th or without secunty of land for carrymg out the work speclfied m the ~cheme, sub1ect to such terms a'1ct conditiOns as are agreed upor1 between the Government and the Agncultural Development Bank or the primary bank, as the case may be . (3) All loans and advances granted and all amounts payable to or recoverable by, the Agncultural Development Bank or the pnmary br;0.ks shall in case of default of payment,' in addition to ether remedies available to the banks, be recoverable in the same man11er as If they are arrears of public revenue due on land. J 0. Charge on mot'fl.ble or tmmovable p1 operty of borrower for amuunt l borrowed -(1) Notwithstandmg anything contamed in the 1' r· •11.L Co-operative Societies Act, 1969 (21 of 1969), or in any 34j3258j85\MC. - -------------------- ---------- 138 othE>r law for the time being in force, but subject to any claim ot the Government m respect of land n.venue or amounts reco­ verable as land revenue, whether pnor m time or subsequent, any person ownmg any land or having mterest 111 any land as tenant ,.,. or occup1er or ownmg any other movable or Immovable property who applies to a primary bank for a loan, shall make a declaration m the prescnbed form creatmg a Gehan or mortgage or hypothe- catiOn m fav~:mr of the pnmary ,bank on the land or other movab!e or Immovable properly or mterest th~;rem or any movable property or movable assets to be acqmred w1th the loan, specified m the declaratiOn, £or the repayment of the loan or advance granted or to be granted Lu htm by the primary hank, together with mterest on such amount ·of the loan or advauce and expressly reservmg m favour of the pr tmary bank a nght of sale wtthout interventiOn of court, in case of detault. ~ - (2) A declaratiOn under sub-section (1) may be varied or can­ celled at any time by the member with the prior approval of the prunary bank. (3) No land or other movable or Immovable property or any movable 1Jroperty or JnJvable assets to be acquired with the loan or advance m respect of which a declaratiOn under sub-sectiOn (1) has been made and no part thereot or of the mterests m such land or movable or• tmmova,Ple property shall; without the consent ot the pnmary bank, be sold or otherwise transferred until the entire amount of the loan or advance taken by the member from the pnmary bank, together with mterest thereon has been paid to the bank, and any transactiOn made m contravent~on of. this sub-sectiOn shall be null and void. (4) Notwtthst:;~.ndmg anythmg contamed in the RegistratiOn Act, 1908 (Central Act 16 of 1!:108), or any other law for the time bemg in force, 1t shall not be necessary to register any Gehan or mortgage or hypothecatiOn created or executed m favour of the Agricultural Development Bank or a pnmary bank, provided in the ·Agricultural Development Bank or the primary bank, as the case may be, sends, w1thm such bme and m such manner as may be prescnbed, a copy of the declarat10n or mstrument whereby the Gehan or mortgage or hypothecatiOn has been created or executed tor the purpose of securmg repayment of the loan, to the registering ofhcer wtthm the local limits of whose jurisdictiOn the whole or any part of the property to which the Gehan or mortgage or hypothe­ catiOn relates Is situate. t5) On receipt of the copy of the declaration or instrument sent tmdcr su b-sectton ( 4), the retpstermg officer shall file a copy • 1:39 ~'. or .rupies thereof, as the case may be, in Book No. I, referred to in section 51 of the Registration Act, 1908 (Central Act 16 of 1908), and thereupon, such Gehan or mortgage or hypothecation shall be deemed to create an interest m the property to which the declara· twn or instrument relatec;; <:'.nd shall cor.stitute not1ce lo any one deaJmg w\th the sa1d. properly. '-- . " (6) Any person who makes any false statement in a declara­ tion unde1· sub-section ( 1) shall be punishable with impnsonment tor a term wh1ch may extend to six months, or with fine which may extend to two thvusand rupees, or wtth both. 11. iipplicant for loan from primary bank to furnish declara­ tion -(1) Every person who ttpphes for a loan from a primay bank shall make a derlarat10n 111 the presfTlbed form before an officer specified by the Registrar 111 this behalf that the lJl.OVable or immo­ vable property on wh1ch the GPh.a'1 or mortgage ·or hypothecation IS created as se:::t...rny for the loan 1s free from encumbrances, that he is in actual po~sesswn thereof and that he has the r1ght to create the Gehan m· mo<tgage or hyi)othecu.twn, c.s the case may be, thereon in favour of t 11e primary banlc (2) Notwithstanding anythmg contamed in any law for the time bemg in force, where a declaratwn undE-r sub-sectiOn (1) in respect of ::>:ty movab!e or nnmovable property 1~ false or defective, the primary bank shall, subject to the provisions of secf.ion 13, have a first charge on all other movable and immovable properties of the applicant, and all such propert1es shall be deemed" to have been mcluded in the Gehan created or mortgage or hypothecation exe­ cuted by the applicant as security for the loan granted to him by the primary bank. , 13) Any person, who makes a false declaration under sub­ ~::ec>tion (1) or make any statement which is false in any such declaration shall be punishable with imprisonment for a term which · · may extend to six m0nths, or w~tb fine which may extend to two thom;and rupees, or with both. ( 4) The amount of loan that may be sanctioned on the basis of a declaration made u..H.ler sub-sectiOn (1) shall be subJect to such hmit :1.s may be pre'3c.-ibed. _ _; 1~ Pnm itp of Gelutn, mortgaqe and h?!pothqcation.=-. ( 1) Any amount payablf' under a GehP.n ~reated 0r mortgage o-r hypothecu­ twn executed in favour of the Agricultural Development Bank or pr1mary hank shall have prwnty ove1· any cTaim of the Government arJsing from a loan under the Kerala Land Development Act, 1964 • l40 (17 of 1964), Or the Kerala Agriculturists' Loans Act, 1961 (27 of 1961), granted after the creatiOn of the Gehan or the execution of the mortgage or hypothecatwn. • (2) Notwithstandmg anythmg contained in any law for the time bemg m iorce, a ·Gehan created or mortgage or hypothecatiOn executed m favour of the Agncultural Development Bank or a pnmary bank shall take precedence over any attachment or equi­ tablf: mortgage over the properties, where, after pubhcation of a nolice in the prescnbed form, the claim or mterest under such altachment or eqmtable mortgage has r:ot been notified to such bank withm the tlme prescribed in the said notice. < .. 13 Transfe?· and testmg gehan, mor~gage. and hypothecatwn wzth Agricultural De1'elopment Bank -A Gehan created or mort­ gage or hypo'thcc:ltwn executed or deemed to have teen created C·i executed m favour of, a:-~d all other assets transferred or deemed to have been t;:ansferred to, a pnmary l)ank, shall with effect from E>UCh creatwn, e:~ecution or transfer or with effect from the date ot ~uch deeming, ~s the case may be, be deemed to have been trans­ terred by such pnmc.ry bank to the AgriCultural Development Bank. 14. Money borrowed for development of land.-Where a pri­ mary bank has granted a loan for Improvement of any land situated m any area o;: areas covered by any c..peclf,k programme of agri­ cultural development, to a person appeurmg to the pnmary bank to have title to lhe s::nd land or to be m l3wful possesswn thereof, and the money has been either in whole or m part utilised for such Improvement, any person acquirmg title to such land on ground ct Pupenor title or on any other ground shall be hable to repay to the pnmary. hank so much of the loan as has been utihsed for the Improvem~nt of the land together with interest thereop.. · 15. Loans to persons having restncted rights of transfer.-(1) !'lotwtthstanding anythmg· contained in any law, custom or usage, where a pnmary bank makes a loan 0r an advance to a member belonging to a Scheduled Caste or Scheduled Tr.ibe or to- any other persun having restncted nghts of ahenatwn over Immovable pro­ perty; it shall be competent to such. member or person to create a Gehan or mortgage or hypothecation on such property in favour ot such pnmary bank as secunty for such loan. ,.., . . (2) The pnmary bank, shall, in the event of default by the /~ member or person and wtthout prejudice to any other remedy avai- lablE: to it either under law or contract or otherwise, be entitled to take possessiOn of such prorerty and lease the same to any person belonging to the same caste or tribe as the member belongs ' I ,A-I . , 141 m case tbe defaulter is a member of a Scheduled Caste or Scheduled Tnbe and m any other case to any person and appropriate the nE:t receipts from the lease m repay·ment of the moneys due to it; and the member or p~r8on shall not bP entitled to r<:covcr pcssession ot such property until the amount due to the primary bank has oe~n repaid m full. 0 CHAPTER IV DISTRAINT AND SALE OF PRODUCE 0 H.i. Distramt when to be made.-(1) If any mstalment payable under a Gehan created or mortgage or hypothecatiOn executed in 1avour of the Agncultural Development Bank or a pnmary bank ur any part of such mstalment has remamed unpaid for more than one months from the }late on whtch It fell due, the Boatd or the comm1ttee may, m additiOn to any other remedy avatlable to 1t, nlJply to the Reg1sLrar or to any sale oftlcer appomted by the H.t.•gtstrar under sectwn 28 for the recc very of such mstalment or pa1;: thereof by distramt and sale of the woduce of the land to which the Gchart or the mortgage or hypothecatwn relates, mclud­ mg the standmg ct·ops thereon and other movable property of the ~efaulter. (2) On receipt of an application under sub-section ll), the sale officer may, notw1thstandmg anythmg contamed m the Kerala Co­ operative Societies Act, 1969 (21 of 1969), take such actwn as i~ necessary to dtstram and sell the produce and other movabie property: / Provided that no dtstramt shall be made after the expiry of thirty-six months from the date on which the instalment fell due. (3) The distraint shall not be excesstve and the value of the property dtstramed shall be, as nearly as possible, equal to the amount due and the expenses of the distraint and the cos1:s of the sale. • · . . 17. Distraint how to be effected.---(1) Before or at the time· when a dtstraint is made unaer section 16, the distrainer shall ~erve or cause to be served upon the defaulter a written demand specifying the amount for wh1ch the q1straint 1s made. (2) The demand shall be dated aiid signed by the distrainc:>r and shall be served upon the defaulter by delivering a copy to him or to some adult male mem her of his family at his usuaJ; place of: abode or'· to his authonsed agent, or when such servlCI;) cannot be· 142 effected by affixing a copy of the demand on some consp1cuous part of his abode and of the land to which the Gehan or mortgage or hypothecation relates 18. Sale of property dtStraint.-(1) If, w1thin fifteen days from the date of service of the demand referred to in section 17, the defaulter does not pay the amount for · whieh the distraint was effected, the distrainer may sell m auction the distramed property or such part thereof as may, m his opinion, be necessary tr, satisfy ' the demand together with the expenses of the distraint and the costs of the sale. (2) From the proceeds of such sale, a deduction shall be made at such rate as may be fixed by the Registrar from time to tlme on account of the costs of the sale . . (3) From the balance shall be deducted the expenses mcurred by the distrainer on account of the d1straint. (4) The remainder, 1f any, shall be applied to the discharge of the amount for which the distramt was made. (5) The surplus, if any, shall be delivered to the person whose property has been sold and he shall be given a receipt for the amount discharged from the proceeds of the sale. CHAPTER V SALE OF PROPERTY WITHOUT INTERVENTION OF COURT 19. Power of sale of property charged without intervention of court.-(1) Notwithstanding anything contained in the Kera:Ia Co­ operative Societies Act, 1969 (21 of 1969), or the Transfer of Property Act, 1882 (Central Act 4 of 1882), or in any other·Jaw for the time being in force, where a Gehan or mortgage or hypothe­ cation has been created or executed in movable or · immovable property m accordance with the provisions of sub-section (1) of section 10 in favour of the Agricultural Development Bank or a primary Bank, the Board or comr.-:~ttee of such bank or any person authorised by the Board or such committee shall, in case of def~ult in the payment of sums due to the bank, have power, in addition to any other remedy available to the primary bank to bring to sale the property to which the Gehan or mortgage or hypothecation relates w1thout intervention of the court. .J~ I 14:3 (2) No such power shall be exercised unless and unt:il- (a) the Board or the committee has previously authorised such sale m the exercise of the powc1· of sale confen ed on It by sub-sect1on ( 1) ; · (b) regt.stered notice requmng payment of sums due to the pnrnary bank, or any part thereof, has been serve(\ ~pon- (i) th~ person creati11g or f:xecutmg the Ge11an or mort­ gage or hypothecation; ~ .; (Ii) any person who has any mterest or charge upon the property to which the Gehan or mortgage or hypothec.:~.tlon relates or any other right to redeem the same, 1 (iii) any surety for the payment of the sum!:> due to the primary bank or any part thereof; and (Iv) any creditor· of the person creating 01 executing the Gehan or mortgage, who has, m a smt for the adnumstrat10n of his estate, obtamed a decree tor sale of the property to Which the Gehan or mortgage or hypothecatiOn relates; and . . (c) there has been default m payment of such sums due to the prtmary bank for a penod of two months aiter serviCe of the notice reterred to m clause (b) - . Provided that the obhgatwn to gtve: such notice to the persons mentioned m sub-clauses {11) and llv) shaJl be cohfined to cases where the Board or the committee has notice of such ciaims. 20. Appltcatton for sale and ma?ener of sale.- (1) For exer­ cismg the power of sale conferred by sub-sectiOn (1) o.t sectiOn 19, the Board or the Oonumttee or any person duty authonsed by the Board or the Committee, as the case may be, may apply to • the sale officer appomted m that behalt under sectiOn 28 to sell the property to which the Gehan or mortgage or hypothecation relates or any part thereof, and such officer shall, after gn·mg not1ce as reqmred by sectiOn 19, sell such property in the manner prescnbed. · (2) The sale shall be by public aucbon and shall be held in .the village where the property to which the Gehan or mortgage or hypothecatiOn relates is situate or at the nearest puhilc place if the sale officer lS of opimon that the property 1a llkely to sell to be~ter advantage at such place. 21. Appltcation to set aside sale on deposit and wnfirmation of sale in defa.ult or on dtSmtSsal of such applwatwn.-(1) When a property has been sold unde'r this Chapter, any person having a .. 144 ~ight or interest therem affected by the sale may, at any time wi~hin thirty da.ys from the date of the sale, apply to the sale officer concerned to have tht: sale Stt aside on h1s depos1tmg vnth the sale officer- - 1 (a) for payment to the Agricultural Development Bank or the primary bank, as the 'case rna¥ be, the amount ~pecified m the proclamatiOn ot sale together w1lh subsequent mtetest and the costs, If aiJ.y, mcurred by the bank m brmgmg the property to sale; and (b) for payment to the purchaser a sum equal to five per cent of the purchase money. . . (2) If such depos1t is made, the sale officer· may make an order settmg as1de the sale. (3) Where no applicatiOn with deposit is made under sub­ section (1) or where such applicatiOn IS made and di:;allowed, the sale officer may apply to the Registrar or any other officer empowered by him in this regard to make an order confirmmg the sale anci, on the Registrar or such officer confirmmg the sale, 1t <Jhall become absolute and the property 5hall be' deemed to have vested m the purchaser from the •t1me the property Is sold. 2~. Distnbution , f sale proceed..~.-(1) The pr<..eeds of ever) sale undeJt this Chapter :;hall be applied by .the sale of.1cer first w payment ot all cosL!", charges and expenses properly lllCurred by hlm as dncidental to the sale or any 8-ttempted sale; secondly, m payment of all interest due on account of the Gehan c.r mortgage or hypothecatiOn m ccnsequence whereof the properly was sold; thirdly, m payment of the prmc1pal money due on accoLmt of .the Gehan or mortgage, or hypothecatiOn; and lastly, the: res1due, If any, shall be pa1d to t!1e person provmg h1mself mterested m the property sold or, .1f there are rpore such persons than OJ!e, then to such persons, a~cordmg to the1r respective mte~est ther.~m or upon their Jo.mt rece1pt. • (2) Any person dissatisfied w1th the dec1s1on 'of the sale officer in regard to the distribution of such residue may, withm thirty days of the commumcatwn to h1m of such deCH>'<m, mstitute a smt m a court to establish the right he claufls. • . (3) The sale officer shall nol 'distribute such 1 c.:s1due until thirtY' days have elapsed from the dat~ of commumca~ion of his decisiOn to all the persons concerned, or, If a smt has bccu .mst1tuted within the said periOd of thirty days by any such person and due notice thereof IS given to hmi before the payment, unt" the smt is • disposed of or otherwise than m acco_rdance with the decision of the court thereon. I I ~' '- 145 (4) Any deficit occurring aiter the sale of the property may also be recovered m the manner provided m th1s Chapter from any other assets of the person who created the Gehan or executed the mortgage or hypothecatw.n. Explanatwn.-In th1s secuon, "court" means the C1y1l court havmg Junsdictwn to entertam a smt to enforce tr.c Gehan or mortgage "or hypothecatwn and w1thm the hmits of whose juris­ diction the property sold 1s situate. 23. Certtficate to purchaser -Where a sale of pr•,1perty has become absolute and the sale proceeds have been recen·ed m full by the sale officer, he shall grant a certificate to the purchaser in the prescribed form spec1fymg the property sold, the sal(: pnce, the date of the sale, the name of the person who at the t1me of the sale IS declared to be purchaser, and the date on. which the sale became absolute, and upon the productiOn of such certificate the Sub Registrar withm whose JUriSdiCtiOn the whole or ~ny part of the property specified m the certificate 1s situate, shil.li enter the contents of such certificate m his register relatmg to Immovable property. . 24. Dehvery of property fo pw·chaser.-(1) Where the pro­ perty sold 1s m the occupancy of the person who created the Gehan or executed the mortgage or hypothecatiOn, as the case may be or of some person on h1s behalf or Df some person claimmg under a title, other than a lease, created by the person who created the Gehan or executed the mortgage or hypothecatiOn subsequent to the Gehan or mortgage or hypothecatiOn m favour (Jf the Agri­ cultural Development Bank or the primary bank, as Lhe case may be, and a certificate in respect thereof has been gr,wted under sectwn 23, the Registrar shall, on the apphcatwn of the purchaser, order delivery to be made by puttmg such purchaser 01, any person appomted by the purchaser to receive delivery on hJs behalf, in possess10n of the property (2) Where the property sold Is m the occupancy of a tenant or other person entitled to occupy the same and a certificate m respect thereof has "been granted under sectwn 23, the Registrar shall, on the apphcat1~m of the purchaser and aiter givmg notice ' to such tenant or other person, order, dehvefy to be madf' by affixmg a copy of the certificate of sale m some conspicuous vJace on the property and procl,ummg to the occupant by beat of dmm or other customary mode at some convement place that the mt.E:rest of the person who created the Gehan or executed the mortgage ur hypothe­ catwn has been transferred to the ,purchaser. 34!3258J85[MC f 146 (3) The prov1sion£> of rules 97 to 103 of Order AX! of the First Schedule to the Code of Civil Procedure, 1908 (Central Act 5 of 1908), shall mutatts mutandis) apply to the cases dealt with m sub-sections (1) and (2). • 25. Rtght of Agrtcultural Development Bank or Pnmary Bank to purchase property at sale.-It shall be competent to the Agri­ cultural Development Bank or a primary bank to purchase any property s_old under this • Chapter, but the property 80 purchased sha}l be disposed of by such bank by sale within such period as may be fixed by the Trustee. 26. Appmntment of recetver and 1'!-ts powers.-(1) The Board may, on Its own motwn or on the apphcatwn of any branch of the Agricultural Development Bank or the committee of a primary bank under circumstances m which the power of sale conferred by sectwn 19 may be exercised, appomt m wntmg a receiver of the produce and mcome of the property or any part thereof and such receiver s~all be entitled either to take possession of the property or collect Its prociuce and mcome, as the case may be, to retain out of any money reahsed by him, his expense of manage­ ment mcludmg h1s remuneratiOn, If any, as may be fixed by the Board and to apply the balance m accordance with the provisions of sub-sectwn (8) of sectwn 69A of the Transfer of Ptoperty Act, 1882 (Central Act 4 of 1882). (2) A receiver appomted under sub-section (1) may, for sufficient cause and on apphcatwn made by the person "'ho created the Gehan or executed the mortgage or hypothecatiOn, a!:> the case may be, be removed by the Board. (3) A vacancy in the office of the receiver may be filled up by the Board. . , ( 4) No•thing m th1s section shall empower the Board to appomt a receiver where the property to which the Genan or mort­ gage or hypothecatiOn relates IS already in the posst>s~ion of a receiver appomted by a civil court; but the Board or the committee, as the case may be, may through the Managing Director in the case of the Agricultural Development Bank or the Secrt>tary in the case of a pnmary bank, petition to such court to direct the receiver ~appointed by such court to apply any part or the whole of the surplus remammg m his hands after meetmg expenses of his manage­ ment, to the discharge of the amount due under the Gehan or the mortgage or hypothecatiOn or part thereof, as the case may be. 27. Tttle· of purchaser not. to be impeached on the ground of irreaulanty etc.-When a sale. has been made m tne professed I ' -~ i j I , 147 exercise of the power of sale under sectwn 19·and has beeu confirmed under sub-s~ct10n (3) of sectiOn 21, the title of the purehaser shall not be Impeachable on the ground that no cause haJ ansen to authonse the sale or that due notice was not g1ven or that the power was otherwise Improperly or 1rregulttly exercised, but any person dammfied by an unauthonsed or Improper or irregular exercise of the power shall have his remedy m damages against the Agricul\ural Development Bank or the concerned pnmary bank, as the case may be. 28. Appcnntment of sale officer.-The Registrar may appomt sale officers for the purpose of conductmg sales under this Act. CHAPTER VI MISCELLANEOUS 29. Powers of Agncultural Development Bank 'tn case secunty property is tnsufficient.-Where any property which IS subJect to a Gehan or mortgage or hypothecatiOn m favour of the AgriCultural Development Bank or a primary bank IS rendered insufficient and the person who created the Gehan or executed the mortgage or hypothecation, havmg been given a reasonable opportumty, by the Board or the committee of the pnmary bank, of prov1dmg further secunty enough to render the whole security sufficient or of repay­ ing such portwn of the loan as may be determined by the Board or 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 Board or the committee, as tlic case mav be, shall be entitled to take action against the person who created the Gehan or executed the mortgage or hypothecatiOn under section 16 or section 19 for the recovery thereof. Explanatwn.-A secunty IS msuffi.c1ent within the '1~eanmg of this section if the value of the property falls below the amount for the time being due to the Agricultural Development Bank or the pnmary bank by such proportiOn as may be specified m the regula­ tions of the Agricultural Development Bank or the bye· laws of the primary bank, as the case ·may be. 30. Power of Board or Trustee to direct dtstratni and sale of produce and sale of mortgaged property etc.-(1) The Board or the Trustee may direct the committee of a primary bank to t~ke action against a defaulter under sectiOn 16 or sectiOn UJ or sectiOn 29 and 1f the committee neglects or fails to do so the Board or the Trustee may take such action. ------- (2) Where action IS taken by the Board under sub-section (1), the provisiOns of this Act and of any rules or regulatiOns made thereunder shall apply 10 respect thereto as If all references to the primary bank and to Its committee 10 the said prov1::.10ns were 'r references to the Agricultural Development Bank and the Board _,., respectively. • ' (3) Where actwn IS taken by the Trustee unde1 sub-section · (1), the provisiOns of this Act and of any rules or regulations made • thereunder shall apply m respect thereto as If all references to the pnmary bank or to its committee m the said provisions were references to the Trustee. ...,_ 31. Bank's nght to 1m.provements effected afler Gehan or rrwrtgage or hypothecatwn -Notwithstandmg anythmg contained in the Kerala Compensat1on for Tenants Improvements Act, 1958 (29 of 1958), the Improvements, if any, made subseuuent to the date of the Gehan or mortgage or'hypothecation in favour of the Agricultural Development Bank or a pnmary bank, by the lessee of the property to which the Gehan or mortgage or hypothecation relates, ,shall be treated as accessiOn to the property and shall be available to such bank for -the realisatiOn of the amount under the Gehan or mortgage or hypothecatiOn. ,. • 32. Deduction from sale pror:eeds of aqncultural produae in certain cases -(1) Notwithstanding anythmg contameJ m any law for the time bemg in force, an applicant for a loan from a primary bank may execute an agreement m favour of that bank prov1dmg that it shall be lawful for ~he marketmg co-operative ~oc1eties or the Commodity Boards through which the agricultural produce belonging to the applicant IS marketed, to deduct such amount as may be specified in the agreement from the sale procef'ds of such agricultural produce marketed through such co-operative societies or boards and to pay the amounts so deducted to such pr1mary bank in satisfactiOn of any debt or other demand due by Lhe applicant to that bank. ' ' Explanatwn -For the purpose of this sectwn, "Commodity Boards" means the Coffee Board established under the Coffee Act, 1942 (Central Act 7 of 1942), the Tea Board established under the Tea Act, 1953 (Central Act 29 of 1953), the Rubber B·>ard consti- tuted under the Rubber Act, 1947 (Central Act 24- of 1947), the ~ Cardamom Board established under the Caraamorr. Act, 1965 (Central Act 42 of 1965), and the Coconut Development Board , established under the C.oconut Development Board Act, 1919 (Central Act 5 of 1979). •' ... 149 (2) On executiOn of an agre~mf'nt as provided I!J :;nb-!:icctJOn (1), the marketmg co-operative society or CommoJJt y Board referred to m. that sub-sectiOn shall, on a requisitiOn 111 wntmg by the primary bank and so long as such debt or demand or any part of it remams unpaid, make a deductiOn, m accol'dance w1th the requisition, from the s?,le proceeds of the agricultural produ<.e belongmg to the applicant anq marketed through them and pay the amounts so deducted to the pnmary bank withm seven days from the date of deductiOn. . (3) A_ny paymer:t made by a marketmg co-operative s•1ciet' or Commodity Board under sub!sectwn (2) shall be · vahd ami effectual agamst any demand upon such society or board by any person. • 33. Gehan or mortgage or hypothecation not to be qnestwned in msolvency proceedtngs -Notwithstandmg anythmg contamed IJ'l the Insolvency Act, 1955 (2 of 1956), a Gehan created or mortgage or hypothecatiOn executed m favour of the Agncultural Develop· ment Bank or a pnmary bank, shall not l:>e,callerl m quest1on on the p-round that It was not created or executed m good faith for valuable consideratiOn or on the ground that 1.t was created or executed lD order to give such bank a preference over the other creditors of the person who created the Gehan or executed the mortgage or hypothecation. ' 0 34. Rtght of Agncultural Development Bank to pay prwr debts.-Where a Gehan is created or mortgage or hypothecatiOn is executed m favour of the Agricultural Development Bank or a primary bank for payment of pnor debts of the person who created the Gehan or executed the mortgage or hypothecatiOn, such bank may, notwithstandmg the provisiOns of sect1ons 83 and 84 of the Transfer of Property Act, 1882, (Central Act 4 of 1882), by not1ce 111 wnting, require any person to whom any SUCh debt IS due, tO reCCI\ e payment of such debt or part thereof from the bank at Its reg1;:;tered office within such period as may be specified m the not1ce, and If any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry mterest from the expiratiC!n of the penod specified m the notice, except m cases where such person proves to the satisfaction of the Board or the committee of the pnmary bank, as the case may be, that the failure to receive notice or payment was due to causes beyond his control: Provided that where there is-a dispute as regards the amount of any such debt, the person to whom such pebt IS due shaH be bound to receive payment, of the amount offered by the' bank towards the - -------------------------- 150 debt, but such receipt shall.not pr-eJudice the right, if any, of such person to recover the balance claimed by him. 35. Power to summon wttnesses and reqmsttwn of docu­ ments.-- ( 1) SubJect to such restnctions, hm1tatwns and conditiOns as may be prescnbed, the Registrar and officers subordmate to the Registrar who are authorised by him m this behalf by general or special order m wntmg, and such other officials engaged in the relief of rural mdebtedness or officers of co-operative hanks which are registered or deemed to· be registered under the Kerala Co­ operative Soc1et1es Act, 1969 (21 of 1969), as the Government may, by notification m the Gazette, authorise in this . behalf shall have the same powers as are vested m a ~1vil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), when trymg a suit, in respect of the followmg matters, namely.- (a) enforcmg the attendance of any person and examm­ ing him on oath or affirmation; (b) compellmg the production of documents; and (c) Issuing comm1sswns for the examination of Witnesses. . . (2) Any of the officers authorised by or under sub-section (1) may require any person present before him to furmsh any information or to produce any document then and there in hi~ possess10n ot power, and relevant to the mqmry. (3) Any officer before whom any document 1s produced under sub-section (1) or sub~sect10n (2) shall have power to take, or to authorise the takmg of, such copies of the document or of any entries therem as snch officer may consider necessary and the copies so taken shall, when certified in such manner as may be prescribed, be admissible m evidence for any purpose m the same manner and to the same extent as the ongmal document or the entries therein, as the case may be. (4) Any person who Wilfully or without reasonable excuse disobeys any summons, reqUisitiOn or order issued under sub-section (1) or sub-section (2) shall be pumshable with fine which may extend to fifty rupees and m the case of a continuing disobedience . with an additiOnal fine which may extend to five rupees for every day during which such disobedience contmues after conviction for the last such dlsobed1ence. · 36.. Registration of documents executed on behalf of the Agricultural Development Bank or Pnmary Bank.- ( 1) Notwith· standing anythmg contamed in the Registration Act, 1908 (Central Act 16 of 1908); it shall riot be necessary for any Director, Managing l! • ' I ,. 151 Director, Secretary or other officer of the Agricultural Develop­ ment Bank or of a pnmary bank to appear m person or by agent at any registratiOn office ll1 any proceedmgs connected w1th the registratiOn of any mstrument executed by h1m m his official capae1ty or to sign as provided in section 58 ut that AH. . (2) Where any mstrument 1s so executed, the regtstering officer who receives such instrument for regtstr atlOn may, if he thinks fit refer to such D1rector, Managing U1rector, Secretary or other officer for mformat10n respectmg the same, and, on being satisfied of the executiOn thereof, shall reg1ster the mstrument . • 37. Power of Pnmary Bank to recewe mont;y and grant valid dischwrges.-Notw1thstandmg that a Gehan created or mortgage or hypoth~cat10n executed m favour of a pnmary bank has been transferred, or 1s deemed under the proV1s10ns of sectiOn 13, to have been transferred, to the Agricultural Development Bank- (a) all moneys due under the Gehan or rnurtgages ot hypothecatiOn shall, m the absence of any specific dmxtJon to the contrary issued by the Board or the Trustee and commumcated to the person who created the Gehan or executed the murtgage or > hypothecation, be payable to the pnmary bank and such payment · 4 sliall be as valid as If the Gehan or mortgage or hypothecation had not been so transferred; and - J .- . (b) the pr1mary bank shall, m the absence vf any specific direction to the contrary issued by the Board or the Trustee and communicated to the primary bank, be entitled to sue on the Gehan , or mortgage or hypothecatiOn or take any other proceedings for the recovery of the moneys due under the Gehan or mortgage, or hypothecation. I ' 38. Proof of documents or entries in documents -The Agrl· cultural Development Bank or any pnmary bank may grant copies of any document obtained and kept by 1t m the course of Its business or of any entries in such documents; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document or the entr1es therem, as the case may be. 39. Chapters IV and V to apply to loans advanced by pnmary banks from funds got borrowed from Agncultural Development Bank.-The proV1s1ons of Chapters IV and V shall apply also to loans advanced by primary banks from funds wh1ch have not been borrowed from the Agricultural Development Bank and to loans \ 152 taken over by the Kerala Co-operative Central Land Mortgage Bank froni the Travancore Credit' BanK. 40. Servtce of nohces under the Act.-Whenever under the ')t-­ provisions of this Act, notice IS reqmred to be gwen to any person 111 wntmg, It shall be sufficient to send such notice by registered post. 41 Sectwns 1021 103 and . rules under sectwn 104 of tho Transfer of Property Act} 1882 to apply to notices ;;,1.dKr the Act.­ The provisiOns of .sections 102 and '103 of the Transfer of Property Act, 1882 (Central Act 4 of 1882), and of any rules made by the. High Court under section 104 of that Act, for carrymg out the purposes of the said se9t10ns, shall apply, sq far as may be, in respect of all notiCes to be served under this Act. 42. Officers of bunk not to lnd at sales -At any sale of movable or Immovable property held .. under the proviSions of this Act for the recovery of any muncy due to the Agricultural Develop- ment Bank or any pnmary bank, no Director, Managing Director, Secretary or other Officer of the Agncultural Development Bank or such pnmary bank, .as the case may be (except on behalf of the bank of which he IS a Director, Managmg Director, Secretary or other Officer), and no sale offics.t· or olher person havmg any duty to perform m connection with such sale, shall, either (hrectly or indirectly, bid for or acquire or attempt to acquire any mterest m such property. 43. Deleyatwn of powers by Board. -The Board may, If It thmks fit, delegate all or any of its powers under sectwns 19, 20 and 26 to any executiVe committee constituted by It and consislmg of two or more of Its members. 44. Starftng of branch banks.-The Board may, from time to time, with the previous sanctiOn of the Registrar, start branches - or regional offices of the Agricultural Development l:ank at such convement centres as It thmks fit and carry on operatwns through them. I 45. Power of Board to rulmtt members -(1) Tht! Board may admit any pnmary bank or the Government as a member of the Agncultural Development Bank on apphcatwn made m that behalf to that bank (2) 'l'he Board may also adm1t any Company or Cm·poration or any body of persons, whether mcorporated or not and whether or not establ_1shed by or under any law, or a co-opt>rative society J • ' l.i'-3 as a nominal or associate member of the Agncultural D~:velopment Bank on application made m that behalf to that bank· Provtded that the previous approval of the Government shall be obtamed for the admission of any company ot corporatiOn or body of persons. . Explanatwn.-In this section "nommal or assoctate member" means a member who possess only such privileges and rights of a member and who is subject only to such habihties of a member as may be specified in the regulations made by the Board . 46. Primary agricultural credit sociehes to be odmttted as members of primary banks tn certam cases.-(1) Not\'llthstandmg anything contained m this Act or m any rule made thereunder or in any other law .for the t1me bemg m force, the GovE-rnment may, in consultation wtth ·the Agrtculturai Development Banl·, by general or spectal order m writmg empower any pnmary agricultural cred1t • society reg~st~red or deemed to be. registered undet the Kerala Co-operative Societies Act, 1969 (21 of 1969) to perform all or any of the functions of a pnmary bank under this Act. (2) A primary agricultural credit society empowered under sub-section (1) shall, m respect·of the functiOns so conferred on it. oe deemed to be a prrmary bank un'der this Act provided that no such society shall have the right to be a member ot the Agri- cultural Development Bank. · ·· (3) A primary agricultural credit society empowered under sub-section (1) shall be made a member of the pnmary bank wtthm whose jurisdictiOn the pnmary agricultural c1 edtl society 1s functiOning, and shall be gtven representation m the committee of such pnmary bank, m the manner prescribed. .J. 47. Transfer of a.<~sets and liabilities of the Kerob. Co-ope. a­ five Central Land Mortgage Bank and Pnmary La1td Mortqoqc banl.s.-(1) Notwithstanding anythmg contained m .<my law tor the time being in force, or m any . contract. on at11l from the commencement of th1s Act, the entire assets and habtl!; .es, nghts. title, interest and obligations of the Kerala Co-operatl':e Central Land Mortgage Bank and Pnmary . Land Mortgc1.ge Banks shall stand transferred to and vested m the Agncullural Development Bank and 1ts primary banks, as the case may be, an'l lhereupon the Agricultural Developmen~ Bank, and its pnmar~· hankl> may enforce the mortgages vested in them as if the pronertil-"~' mortgaged to the Kerala Co-operative Central Land Mortga:ge Bank and its primary ballks were mortgaged to the Agricultural Devc.>lopmcnt Bank and its primary banks. 34:3258j85j'MC • 1.34 (2) The share holders, debenture holders and depo.,itors of the Kerala Co-operative Central Land Mortgage Bank and the primary land mortgage banks shall be deemed to be the share holders, debenture holders and depos1tors respectively ot the Agri- ' cultural Development Bank and its primary bank<;, as the case may be, from the date of commencement of this Act ar:d they shall enJoy all tne rights and privileges of the share holders, debenture holders and depositors of the Agricultural Develqpment Bank and its primary banks. (3) All contracts, deeds, bonds, agreements and other instru­ ments of whatever nature subsistmg or havmg effect on the date . of commencement of this Act and to wh1ch the kerala Co-operative Central Land Mortgage Bank or any pnmary land mc·rtgdge bank is a party shall from such date be of full force and effect against or in favour of the Agricultural Development Bank ·or the corres­ ponding pnmary bank, as the case may Ue, and may be enforced as fully and effectually by the Agricultural Development Bank and the primary bank. 48. Power of Board to make regnlatt0t1S -Notwithstanding anything contamed m the Kecala Co-operat1ve Societle.-> Act, 1969 (21 of 1969), or the rules made thereunder, the Board shall have ~' general power of supervision over the pnmary banks and may, with the approval of the Trustee, make regulatiOns flct 1r.consiste1Ji. w1lh this Act or the rules made thereunder-. . (a)· for the mspection of the account books and proceedings of pnmary banks; (b) for the subm1ss1on of returns and reports ''Y primary banks in resp~ct of their transactions, l (c) for the penod1Cal settlement of accounts between pr1mary ~ banks and the Agricultural Development Rank for the payment of the amounts recovered by primary banks on Gehan cr mortgage or hypothecatiOn transferred, or deemed under the pi·ovisions of section 13 to have been transferred to the Ag1 icultural D~velopment Bank; (d) prescribing the form in which appiicat1on to primary banks for loans should be made and for the valuatiOn· ot the pro­ perties offered as security for such loans, (e) for the investment of moneys realised from Gehan or ~ mortgage or hypothecation; and • 1 • (f) generally for the purpose of safeguarding the interest of the parties concerned and for carrying qut the purposes of this Act. 49., Cognisance of offences.-(1) No Court shall take cogni­ sa.nce of any offence under this Act except with the previous sanction in writmg of the Registrar, and no Court mferwr to that of a Magistrate of the First Class shall try any offence pumshable under this Act. __..(2) No sanctiOn shall be given under sub·sect10n (1) without givmg the party concerned an opportumty of being heard. , 50. Power to make rules.-(1f The Government may, by notification in the Gazette, make rules to carry out all 'or any of the purposes of this Act. . (2) In particular, and Without prejudice to the generality of the foregoing power, such rules may provide for the following matters, namely :- (a) the form of declaratiOn under section 10; (b) the form of notxce under sectiOn 12; (c) manner of effecting distraint; (d) custody, preservation and sale of distramed properties; (e) deduction from the sale proceeds under st::ction 32; . (f) ill'V"estigation of the claims by persons other than the defaulter to any right ·or interest m distramed properties and .for the postponement of the sale pendmg such investigatiOn; (g) immediate sale of perishable articles; (h) fixing the rates of deduction on account of the cost of sale of distrained properties; (i) proclamation and conduct of sales , • (j) recovery of the ·expenses of proclam:ttion r. nd sale; (k) deposit of the purchase money; • (I) the re-sale of the property If the purchase money is not deposited· (m) the representation of primary agricultural credit 11oeieties and mdividu&ls m the committees of primary hanks; -(n) the registration of claims m respect of property mortgaged to the AgriculturaJ. Development Bank or a primary bank; (o) any other matter reqmred or allowed by this Act to be prescribed. .. 156 (3) Every rule made under thts Act shall be laJd, as soon as may be after It Is made, before the Legislative Assembly while ~ it Is m session, for a total per1od of tourteen days which may be • ~ comprised m one sessiOn or in two successive scsswns, and u, before the exp1ry of the sesswn in whtch It is so laJd or the sessiOn immediately followmg the Legislative Assembly makes any modi­ fication m the rule or decides that the rules should not be made, the rule shall thereafter hav~:- effect only in such modified form or be of no effect, as the case may be, so however that any such modi­ ficatiOn or annulment shall be without prejudice to the vahdtty of anything prevwusly done under that rule. 51. Gerwin nghts and habtltfles of Cochtn Co-operative Land Mortgage Bank to contmue tn that Bank.-Notw1thstanding anything contained in this Act: all assets, nghts and habthties of the Cochin Co-operative Land Mortgage Bank Limited, subststmg at the com­ mencement of Uus Act shall contmue to be the assets, nghts and liabilities of that bank and the provisions of the Cochin Co-operative Land Mortgage Banks Act XXV of illl, shall apply wah respect to· such assets, rights and liabilities 52 Repeal and Savings.-(1) The Kerala Co-operative Land 'l..t Mortgage Banks Act, 1960 (1 of 1960), is hereby repealed. 17' (2) Notwithstanding such repeal, all appomtm<:>nts, rule~. orders and transactwns made, notificatiOns and notkees ~ssued, and smts and other proceedmgs instituted, under the Act -hereby repealed shall, so far as may be, be deemed to have been respectively made, issued or mstttuted under this Act. (3) The regulations made by the Board of DtreC'tors of the Kerala Co-operative Central Land Mortgage Bank Limited under the Act repealed by sub-sectwn (1) shall, in so far as they are not inconsistent wt'th the proviswns of this Act and the rules made thereunder, contmue m force until altered or rescinded under this Act. ( 4) The bye-laws made by any pnmary land mortgage bank before the commencement of thts Act shall, in so far as they are not mconsistent with the proviswns of this .Kct and the rules made thereunder. continue in force until altered or rescmded under thts Act. ( 5) The Board of Directors of the Kerala Co-operative Central Land Mortgage Bank L1m1ted and the committee of every primary land mortgage bank existing immediately before the com­ mencement of this Act, shall subject to the pro\"isions of the regulations or bye-laws, as the case may be, applicable thereto, continue to function as such till the expiry of its 'term in accordance with such regulations or bye-laws, as. the case may I"'C ' ~ i I J