section 26
Power to sell property charged without intervention of a Court
The Madhya Pradesh Sahakari Krishi Aur Gramin Vikas Bank Adhiniyam, 1999Finance199963 sections
Statutory text
- (1) Notwithstanding anything contained in the Madhya Pradesh Co-operative Societies Act, 1960 or the Transfer of Property Act, 1882 or any other law for the time being in force, where security has been furnished in respect of moveable or immovable property in favour of the State Development Bank or a District Development Bank, the Bank or any person authorised for the purpose shall, in case of default in the payment of sums due to the Bank, have power, in addition to any other remedy available to it to bring to sale the property to which the security relates without intervention of any court of law.
- (2) No such power shall be exercised by a District Development Bank unless and until the State Development Bank has previously authorised such sale in exercise of the power conferred on it under sub-section (1): Provided that the State Development Bank shall be deemed to have authorised the exercise of such power if no reply is received from it within thirty days of making a reference by the District Development Bank or any person authorised by it for the purpose: Provided further that approval shall not be necessary in case where the loan is advanced by the District Development Bank out of their own fund.
- (3) No such power shall be exercised by the State Development Bank or a District Development Bank unless and until:
- (a) a notice in writing requiring payment of sums due to the District Development Bank or any part thereof has been served upon-
- (i) the loanee;
- (ii) any person who has any interest or charge upon the property to which the security relates or any other right to redeem the same;
- (iii) any surety for the payment of the sums due to the District Development Bank;
- (iv) any creditor of the loanee who has, in a suit for the administration of his estate, obtained a decree for sale of the property to which the security relates; and
- (b) there has been default in payment of such sums due to the District Development Bank for a period of two months after service of the notice referred to in clause (a): Provided that the obligation to give such notice to the persons mentioned in sub-clauses (ii) and (iv) of clause (a) shall be confined to cases where the State Development Bank or the District Development Bank has notice of such claim.
- (a) a notice in writing requiring payment of sums due to the District Development Bank or any part thereof has been served upon-
- (4) Any balance remaining due after the sale of the property may also be recovered in the manner provided under this Act from any other assets of the loanee.
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