Chapter VI-A Chapter VI-A

Land Development Banks

Definitions.- In this Chapter, unless context otherwise requires –

1. (a) ‘Board’ means the Managing Committee of the State Cooperative Land Development Bank :
2. (b) ‘Land Development Bank’ Includes the State Cooperative Land Development Bank and the primary Cooperative Land Development Band;
3. (c) “Prescribed’ means prescribed by rules made under this chapter,
4. (d) “Primary Cooperative Land Development Bank’ means registered society of that name, registered under section 11, and includes the Bihar State Cooperative and Mortgage Bank Ltd registered as such under section 11; and
5. (f) ‘Trustee’ means the Trustee referred to in section 44.C.

44 B. Application of Chapter to Land Development Bank,- The Provisions of this chapter shall apply to Land Development Banks advancing loan for all or any of the purposes herein enumerated, that is to say-

1. (i) land improvement and productive purposes:
2. (ii) the redemption of mortgages on lands;
3. (iii) the redemption of mortgages on other valuable immovable property subject to such conditions as may be prescribed;
4. (iv) the liquidation of debts of agriculturists subject to such restriction as may be prescribed:
5. (v) the purchase of acquisition of title to agricultural lands by tenants; or
6. (vi) the erection, re-building of repairing of houses for agricultural purposes. Explanation.- ‘Land improvement and productive purposes’ means any work, construction or activity which adds to the productivity of the land, and in particular, includes the following, that is to say-

1. (a) construction and repair of wells (including tube-wells, tanks and other works) for the storage, supply or distribution of water for the purpose of agriculture or for the use of men and cattle employed in agriculture.
2. (b) Renewal or reconstruction of any of any of the foregoing work;
3. (c) preparation of land for irrigation;
4. (d) drainage, reclamation from rivers of other waters or protection from floods or from erosion or other damage by water, of land used for agricultural purposes or waste land which is cultivable;
5. (e) bunding and similar improvements;
6. (f) reclamation, clearance and enclosure of permanent improvement of land for agricultural purposes;
7. (g) horticulture;
8. (h) Purchase of oil-engines, pumping sets and electrical motors for any of the purposes mentioned herein;
   • (i) purchase of tractors or other agricultural machinery;
9. (j) increase of the productive capacity of land by addition to it of special variety of soil;
10. (k) construction of permanent farm-house, cattle sheds and sheds fox processing of agricultural produce at any stage.
11. (l) purchase of machinery for crushing sugarcane, manufacturing gur of Khadsari sugar or sugar;
12. (m) purchase of land for consolidation of holdings;
13. (n) digging canals;
14. (nn) the establishment of poultry, fishery, dairy, piggery and sheep rearing, etc. and
15. (o) such other purposes as the State Government may, from time to time, by notification in the official Gazette declare tote improvement for productive purpose for the purposes of this

Appointment of Trustee and his powers and functions Appointment of Trustee and his powers and functions.-

1. (1) The Registrar, or- where the State Government appoint any other person in this behalf, such person shall be the Trustee for the purpose of securing the fulfilment of the obligations of the State Cooperative Land Development Bank to the holders of debentures issued by the Board.
2. (2) The powers and functions of the Trustee shall be governed by the provisions of this chapter and by the instrument of trust executed between the State Cooperative Land Development Bank and the Trustee, as modified from time to time by mutual agreement between the Board and the Trustee.

Trustee to be a Corporation sole.- The Trustee shall be a corporation sole by the name of the Trustee for the debentures and as such shall have perpetual succession and a common seal and in his corporate name may sue and be sued.

Issue of debenture by the Board.-

1. (1) with the pervious sanction of the Trustee, and subject to such terms and conditions as the may impose, the Board may, from time to time, issue debentures of such denomination for such periods as it may deem expedient on the security of the mortgages held of mortgages partly held and partly to be held and either transferred of deemed to have been transferred, under the provisions of section 44-J, to the State Cooperative Land Development Bank and other properties of such Bank Provided that notwithstanding anything contained in this sub-section regarding issue of debentures on security of mortgages, it shall be competent for the Board with the pervious sanction of the trustee, and subject to such terms and conditions as it may impose to insue debentures in the security of the Governm4ent guarantee regarding re-payment of principal and payment of interest thereon in respect of loans issued to the corporate bodies implementing special schemes of agricultural development irrigation etc. on the basis of Government guarantee.
2. (2) Such debentures may contain a term fixing a period not exceeding thirty years, from the date of issue, during which they shall be redeemable, or reserving to the Board the right, to call in at any time any of the debentures in advance of the date fixed for redemption, after giving to the debenture-holders concerned not less than three month’s notice in writing.
3. (3) The total amount due on the debentures issued by the Board including those issued before the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975 and outstanding at any time shall not exceed the aggregate of –
   • (a) the amount due on the mortgages.
   • (b) the value of the properties and other assets transferred of deemed to have been transferred under section 44-j to the State Co-operative Land Development Bank and subsisting at such time:
   • (c) the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time;
   • (d) the amount due on the Government guarantee on the basis of which loans have been issued to corporate bodies.
4. (4) Debentures in excess of the limit specified in sub-section
5. (3) may be issued with permission of the Trustee.

Vesting of mortgaged property in the Trustee and floating charge of debenture holders.- Upon the issue of debentures under the provisions of section 44E, the mortgages, properties and other assets, referred to in sub-section

1. (3) of that section, held by the State Cooperative Land Development Bank shall vest in the Trustee and the holders of debentures shall have floating charge on all such mortgages, properties and assets and on the amount paid under such mortgages and remaining in the hands of the State Cooperative Land Development Bank or of the Trustee.

Guarantee by the State Government of principal and interest on debentures.-

1. (1) The State Government may, if in their opinion it is necessary in the public interest so to do, and subject to such terms and conditions as the State Government may think fit to impose, guarantee the principal of and interest on the debentures issued by the Board, including debentures, if any, issued prior to the commencement of Bihar Cooperative Societies (Amendment) Ordinance, 1975 subject to such maximum amount as may be fixed by the State Government.
2. (2) The State Government may, subject to the provisions of any Act in that regard, increase the maximum amount of any guarantee given under sub-section (1).

Priority of mortgage, over claims.-

1. (1) Mortgage executed in favour of a Land Development Bank shall have priority over any claim of the Stat Government arising from a loan, under the Land improvement Loans Act, 1883 (19 of 1883),of the Agriculturists’ Loans Act, 1884(12 of 1884) or any other law for the time time being in force, granted subsequent of the execution of the mortgage.
2. (2) A mortgage executed in favour of a Land Development Bank shall have priority also over the claim of may other person arising out of a mortgage of any description executed or any other charge created, after the issue of a public notice under section 44.

Right of Land Development Bank to purchase mortgaged property 44 I. Right of Land Development Bank to purchase mortgaged property.- Notwithstanding the provisions contained in the Bihar Land Reforms (Fixation of Ceiling Are3a and Acquisition of Surplus Land) Act, 1961 (Bihar Act XII of 1962) but subject to any tenancy law for the time being in force, it shall be lawful for Land Development Bank to purchase any mortgaged property sold under this Chapter, and the property so purchased shall be disposed to by such bank by sale in such manner and within such period as may be fixed by the trustee: Provided that a purchaser of such mortgaged property form a Land Development Bank shall purchase it subject to the provisions of the Bihar Land Reforms(Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act Xii of 1962)

44 J. Mortgages executed in favour of Land Development Bank to Stand Vested in Trustee.- The mortgages executed in favour of and all other assets transferred to the State Cooperative Land Development Bank by its members, either before or after the commencement Bihar Cooperative Societies (Amendment) Ordinance, 1975 shall vest in the Truste with effect from the date of such execution or transfer and likewise mortgages or transfer of assets in favour of Primary Cooperative Land Development Bank by its members shall be deemed to have been transferred to the State Cooperative Land Development Bank and shall vest in the Trustee.

44 K. Power of Primary Land Development Bank to receive money and grant discharge. – Notwithstanding that a mortgage executed in favour of a Primary Land Development Bank has been transferred or is deemed, under provisions of section 44-J, to have been transferred to the State Cooperative Land Development Bank.

1. (a) all moneys due under the mortgage shall, in the absence of any specific direction to the contrary issued by the Board of trustee and communicated to the mortgagor, be payable to the Primary Land Development Bank and such payment shall be as valid as if the mortgage had not been so transferred: and
2. (b) the Primary Land Development Bank shall, in the absence of any specific direction to the contrary, issued by the Board of Trustee and communicated to the Primary Land Development Bank, by entitled to sue on the mortgage or take any other proceeding, including a proceeding under this Act. for the recovery of the moneys due under the mortgage.

44 L. Registration of mortgage in favour of Land Development Bank. – Notwithstanding anything contained in the Indian Registration Act, 1908 (16 of 1908), it shall not be necessary to register mortgages executed in favour of Land Development Bank Provided that the Land Development Bank concerned sends within such time and in such manner as may be prescribed a copy of the instrument; where by movable or immovable property is mortgaged for the purpose of securing repayment of the loan to the Registering Officer within the local limits of whose jurisdiction the whole or any part of the property mortgaged is situate, and such Registering officer shall file a copy or copies, as the case may be, in this Book no. 1 prescribed under section 51 of the Indian Regist4ration Act, 1908 (16 of 1908).

44 M. Power of Land Development Bank to pay prior debts of mortgagors and secure consequential reliefs. –

1. (1) Where a mortgage is executed in favour of a Land Development Bank for payment of prior debts of the mortgagor, such Bank any, notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882) by such notice in writing may be prescribed, require any person to whom any such debts is due to receive payment of such debt of part thereof form the Bank at its registered office or its branch offices within such period as may be specified in the notice.
2. (2) Where any such person fails to receive such notice or such payment, such debt or part there of as the case may be, shall cease to carry interest from the expiration of the period specified in the notice; Provided that were there is a dispute as regards the amount of any such debt, the person to whom such debt is due may refer the dispute to Registrar for decision in accordance with provisions of section 48; Provided further that the person to whom such debt is due shall, pending the decision in the dispute, be bound to receive payment, of the amount offered by the Land Development Bank towards the debt but such receipts shall not prejudice the right, if any, of person to recover the balance claimed by him.
3. (3) Where a notice has been served under sub-section
4. (1) on any person for receiving payment of his dues, such person shall be bound to deliver possession, to the mortgagor, or any property held in usufructuary mortgage for the debts due on or before the date specified in the aforesaid notice; Provided that the may deliver possession of any agricultural land afther harvesting of the standing crop, if any, and in such an event the shall be entitled to receive the amount due to him from the Land Development Bank on the date of delivery of possession given to the mortgagor.
5. (4) Where a person holding an; property in usufructuary mortgage refuses delivery of possession in the manner indicated in sub-section(3), the Collector shall, on an application of the Land Development Bank made in this behalf, after making a summary enquiry reject the mortgagee and restore the mortgaged land to the mortgagor and the mortgage shall thereupon be deemed to have terminated.
6. (5) The provisions of this section shall be subject to any tenancy laws for the time being in force:

44 N. Power of Land Development Bank to advance loans and hold lands. – Subject to the provisions of this Act and in accordance with the rules made thereunder, it shall be competent for a Land Development Bank to advance loans for the purposes referred to in section 44- B and to hold lands the possession of which is transferred to it under the provisions of this Chapter.

44 O. Public notice for entertaining objection. –

1. (1) When an application for a loan is made for any of the purposes mentioned in section 44- B, a public notice shall be given of the application in such manner and form as may be prescribed, calling upon all persons interested to make their objections to the loan, if any, before the date specified therein. The person by whom such public notice shall be given and the manner in which the objection shall be disposed of by him shall be such as may be prescribed. Copies of such public notice shall also be sent separately to such persons and within such time as may be prescribed,
2. (2) The person empowered to give notice under sub-section
3. (1) shall consider every objection made under that sub-section and pass an order in writing either upholding or overruling it. When the objections is overruled, he shall recommend the application to the Land Development Bank for its consideration: Provided that when the question raised by an objection is, in the opinion of such person, one of such a nature that it cannot be satisfactorily decided except by a Civil Court, he shall postpone the consideration of the application until the question has been so decided.
4. (3) A notice under sub-section
5. (1) published in the manner prescribed, shall for the purpose of this Act, be deemed to be proper notice to all persons having or offered as security for the loan,
6. (4) Where an application is recommended under sub-section
7. (2) the Land Development Bank shall, in accordance with the rule made by it in this behalf, consider such applicati0n for the purpose of making the loan, 5. Where no objection under sub-section
8. (1) has been made the question at issue shall be decided by the person empowered to consider objections in such manner as he may deem proper and no person shall have any claim what-soever including any claim arising out of a mortgage of any description against the property of the loanee for which the loan applied for is sanctioned under the provisions of this Chapter, until such time as the loan together with interest thereon or any other dues arising out of the loan are paid in full.

44 P. Mortgage executed by managers of Hindu joint families or natural or legal guardians of minors or disabled persons. –

1. (1) Mortgages, in respect of loans by a Land Development Bank either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975 by the manager of a Hindu Joint family or the natural or legal guardian of a minor or disabled person for any of the purposes specified in section 44 B. shall be binding on every member of such Hindu joint family, or such minor or disabled person, notwithstanding any law to the contrary.
2. (2) Subject to the provisions of sub-section (1), where a mortgage execute in favour of a Land Development Bank, either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975, is called in question on the ground that it was executed by the Manager of a Hindu Joint family or natural or legal guardian of a minor or disabled person for a purpose not binding on the members of such Hindu joint family or such minor or disabled person, the burden of proving the same shall, notwithstanding any law to the contrary, lie on the party alleging it.

44 Q. Order granting loan conclusive of certain matters. – Written order by the Land Development Bank, or person o managing committees authorised by this Chapter or under the bye-laws of the Bank loans for all or any of the purposes specified in section 44-B granting either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975, a loan to or with the consent of a person mentioned therein for the benefit of the land or for the productive purpose specified therein, shall be conclusive of the following matters namely :-

1. (a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of section 44-B;
2. (b) that the person had on date of the order a right to make such productive purpose, as the case may be; and
3. (c) that the improvement is one benefiting the land specified and the productive purpose concerns the land offered as security or any part thereof as may be relevant.

44 R. Recovery of loan by Land Development Bank. – Any loan granted by a Land Development Bank, including any interest chargeable and, such cost, if any as may be prescribed incurred in connection therewith shall, when they become due, be recoverable by the Bank concerned:

Collector to make recoveries during certain period 44 S. Collector to make recoveries during certain period. –

1. (1) During such period as the Stat Government may, by general or special order, notifying in the official Gazette, it shall be competent for Collector, on application being made to him in this behalf by a Land Development Bank, to recover all sums due to the Bank, including the cost of such recovery.
2. (2) The Collector or any person specially authorized by him in this behalf, shall recover all sums due to a Land Development Bank in the following order and manner, namely :-
   • (a) for the borrower as if they were in arrears of land revenue due by him.
   • (b) Out of the land for the benefit of which the loan has been ranted as if they were arrears of land revenue in respect of that land.
   • (c) for a surety, if any, as if they were arrears of land revenue due by him;
   • (d) out of the property comprised in the collateral security, if any according to the procedure for realization of land revenue by the sale of immovable property other than the land on which the revenue is due.
3. (3) the provisions of this section shall be subject to any tenancy law for the time being in force.

44 T. Distraint and sale. –

1. (1) if any installment payable under mortgage executed in favour of a Land Development Bank of any part of such installment has remained unpaid for more than one month from the date on which it fell due, the managing committee of such a bank or the Board may, in addition to any other remedy available to the bank, apply to the Registrar for the recovery of such installment of part there of by distraint and sale the produce of the mortgaged land, including the standing crops thereon, and any other movable property of the default in the manner prescribed. On receipt of such application the registrar may, after giving registered notice to the mortgagor notwithstanding anything contained in the Transfer of Property Act. 1882 (4 of 1882), direct distraint and sale of such produce and, if necessary, also of such other movable property of the defaulter: Provided that such implements of husbandry other than the implements mortgaged to the Land Development Bank, and such cattle of the defaulter as may, in the opinion of the Registrar, be necessary to enable the defaulter to earn his livelihood as an agriculturist shall not be liable for such distraint and sale: Provided further that no such distraint shall be made after the expiry of twelve months from the date on which the installment fell due.
2. (2) The value of the property distrained shall be, as far as may be, equal to the amount due, and the expenses of the distraint and the cost of the sale.

44 U. Powers of sale when to be exercised. –

1. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882). Where a power of sale without the intervention of the court is expressly conferred on a Land Development Bank by the mortgage deed, the managing committee of such bank or the Board or any person authorized by such managing committee or the Board in this behalf shall, in case of default of payment of mortgage money or any part thereof, have power, in addition to any other remedy available to the bank, to bring the mortgaged property to sale without the intervention of court.
2. (2) No such power shall be exercise unless and until -
   • (a) the Board has previously authorized the exercise of the power conferred by sub-section
3. (1) after considering the representation, if any, of the mortgagor:
   • (b) the registered notice requiring payment of such mortgage money or part thereof has been served upon-
     • (i) the mortgagor;
     • (ii) any person who has any interest in, or charge upon the property mortgaged or in or upon the right to redeem the same;
     • (i) any surety for the payment of the mortgage debt or any part there of; and
   • (c) default has been made in payment of such mortgage money or part thereof, for there months after service of notice in this behalf,

44 V. Powers of Land Development Bank where mortgaged property is destroyed or security becomes insufficient. – Where any property mortgaged to a Land Development Bank is wholly or partially destroyed or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity, by the managing committee of the said bank or the Board of providing further security enough to make the whole security sufficient or of re-paving such portion of the loan as may be determined by the managing committee or the Board has failed to provide such security or to repay such portion of the loan the whole of the loan shall, notwithstanding its terms and conditions, be deemed to fall due at once and the managing committee or the Board shall be entitled to take action against the mortgagor, under section 44-S or section 44-T or section 44-U, for the recovery thereof. Explanation.- For the purpose of this section, security shall be deemed to be insufficient unless the value of the mortgaged property, including improvement thereon, exceeds the amount for the time being, due on the mortgage by such proportion as may b specified in the rules or the bye-laws of the Land development Bank.

44 W. Power of the Board or Trustee to take action against defaulters. –

1. (1) The Board or the Trustee may direct the managing committee of a primary Cooperative Land Development Bank to take action against a defaulter under sections 44-S,44-T,44-U or 44-V and if the managing committee neglects or fails to do so, the Board or the Trustee may take such action. The Trustee may direct the Board to take similar action against a defaulter and on the Board]s neglect or failure to do so, may take such action himself.
2. (2) Where an action is taken under the provisions of sub-section
3. (1) by the Board, the provisions of this Chapter or any rules made in pursuance there of shall apply as if all references therein to a primary Co-operative Land Development Bank and its managing committee were references to the State Cooperative Land Development Bank and the Board.
4. (3) When an action is taken under the provisions of sub-section
5. (1) by the Trustee, the provisions of this Chapter or any rules made in pursuance thereof shall apply as if all references therein to primary Cooperative Land Development Bank and its managing committee or the state Cooperative Land Development Bank or the Board were references to the Trustee.

44 X. Confirmation of sale. –

1. (1) Where any mortgaged property is sold under the provisions of section 44- U by a Primary Land Development Bank, the Bank shall, in the manner prescribed, submit to the State Cooperative Land Development Bank and the Registrar a report setting forth the manner in which the sale has been effected and the result of the sale. Where the sale is made by the State Cooperative and Development Bank or the Trustee is a person other than the Registrar. Similar Report shall be submitted by the Board or the Trustee as the case may be, to the Registrar.
2. (2) After the report aforesaid has been submitted to the Registrar the managing committee of a Primary Cooperative Land Development Bank or the Board of the Trustee, as the case may be, may with the approval of Registrar, confirm or cancel the sale within one hundred and twenty days of the date of sale.
3. (3) Where the Registrar is the Trustee and has taken action pursuant to subsection
4. (1) of section 44-W,he may confirm of cancel the sale of the mortgaged property of his own motion or on the appl9ocation of a Land Development Bank within one hundred and twenty days form the date.
5. (4) Upon the mortgagor or any person having a right, title or interest in the mortgaged property applying to the managing committee or a Land Development Bank or the Board or the Trustee or the Registrar as the case may be, for setting aside the sale after having deposited at the Office of the Land Development Bank concerned such sums of money as may be sufficient for payment of the amount specified in the notice served under clause
   • (b) of sub-section
6. (2) of section 44-U together with subsequent interest and costs, if any, incurred during the process of sale and a commission, for payment to the purchaser, or a sum equal to five percent of the purchase money deposited by him, the sale of the mortgaged property shall be cancelled under the provisions of sub-section
7. (9) or
8. (3) of this section.
9. (5) When sale is confirmed under the provisions of this section it shall become absolute and shall be deemed to be absolute to be absolute for the purpose of the Code of Civil Procedure, 1908 (5 of 1908).

44 Y. Disposal of sale proceeds. –

1. (1) The proceeds of the sale, effected under this Chapter shall be applied of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly to the payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold and thirdly to the payment of the principal due on account of the mortgage including cast and charges incidental to the recovery.
2. (2) if there remains any residue from the proceeds of sale referred to under subsection (1), the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons than one, to such persons upon their joint receipt or according to their respective interest therein:

Certificates of purchase, delivery of property and title to purchaser 44 Z. 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 Whose 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.

1. (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.

44 AA. Title of purchaser not to be questioned on ground of irregularities, etc. – Where any property is sold in exercise or power of sale under this Chapter, the title of the purchaser shall not be questioned on the ground that-

1. (a) the circumstances required for authorising the sale had not arisen,
2. (b) due notice of the sale was not given, or
3. (c) the power of sale was otherwise improperly or irregularly exercised; but any person who has suffered any damage by an unauthorized, improper or irregular exercise or such power is entitled to have a remedy in damage against the Land Development Bank.

44 AB. 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.

44 AC. Appointment of receiver and his powers. –

1. (1) The Board may, of its own motion or on the application of a Primay 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 possession of the property or collect its produce and income, or both, as the case may be, to retain out of any money realized 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
2. (8) of section 69 A of the Transfer of Property, Act, 1882 (4 of 1882).
3. (2) The Board may, for sufficient cause; removes such receiver on an application made by the mortgagor and fill the vacancy in the office of the receiver.
4. (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.

44 AD. Restriction on leases. –

1. (1) Notwithstanding anything contained in the transfer of property Act, 1882 (4 of 1882), or any 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.
   • (P) Where the land, mortgaged with possession to a Land Development Bank, is in actual possession of a tenant, the mortgagor of 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 on such notice being given, the tenant shall be deemed to have attorned to the Land Development Bank.

44 AE. Registration of documents executed on behalf of a Land Development Bank. –

1. (1) Notwithstanding anything in the Indian Registration Act, 1980 (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. (2) Where any instrument is so executed, the Registering Officer to whom such instrument is presented for registration may, if he thinks fit, reer 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.

44 AF. Delegation of certain powers by Board. – The Board if it thinks fit, may delegate all or any of its powers under section 44 U, 44 W of 44 AC to an Executive Committee consisting of three or more of its members constituted by it.

Provision 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 of the purposes of the said sections shall apply so far as may be, in respect of all notices to be served under this Chapter.

44 AH. Board’s power of supervision over Primary Cooperative Land Development Banks. – Subject to the provisions of the Act, the Board shall have such powers of supervision over the primary Cooperative Land Development Bank, including powers of inspection of account books and proceeding of such bank, as may be prescribed by rules.

44 AI. Power to make rules. – The State Government may, after previous publication, make rules for carrying into effect the purposes of this chapter.

1. (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 Bank, 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 cooperative Land Development Bank to the State Cooperative Land Development Bank in respect of their transactions periodical statement of accounts between the primary Cooperative Land Development Bank and the State Cooperative Land Development Bank, payment of amount recovered by the primary Cooperative Land Development Bank on mortgages transferred to the State Cooperative Land Development Bank the form in which application to Land Development Bank for loans may be made, the properties offered as security for such loans the investment of money realised by Land Development Bank from the mortgagors and matters generally relating to the conduct of business of Land Development Bank: and
   • (d) all matters expressly required of all9owed in this Chapter to be prescribed by rules.