section 39
Recovery of loan from sale proceeds of agricultural produce in certain cases
The Madhya Pradesh Sahakari Krishi Aur Gramin Vikas Bank Adhiniyam, 1999Finance199963 sections
Statutory text
- (1) Notwithstanding anything contained in any law for the time being in force an applicant for a loan from a District Development Bank may execute an agreement in favour of that Bank providing that it shall be lawful for the marketing co-operative societies or any other institutions constituted under law 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 proceeds of such agricultural produce marketed through such co-operative societies or institutions and to pay the amount so deducted to such District Development Bank in satisfaction of any debt or other demand due from the applicant to that Bank. (2) On execution of an agreement as provided in sub-section (1), the marketing co-operative society or any other institutions referred to in that sub-section shall on a requisition, in writing by the District Development Bank and so long as such debt or demand or any part of it remains unpaid, make a deduction, in accordance with the requisition, from the sale proceeds of the agricultural produce belonging to the applicant and marketed through them and pay the amount so deducted to the District Development Bank within such period as may be prescribed from the date of deduction. (a) if the marketing Co-operative Society or any other institutions referred to in sub-section (1) fails to make the payment to the Bank within aforesaid time, the marketing co-operative societies or any other institutions referred to in sub-section (1) shall be liable to pay interest on the amount so recovered at the same rate which is recoverable from the borrower, in case of default. (c) After receipt of the aforementioned deducted amount by the State Development Bank or District Development Bank, as the case may be, the obligation of the borrower shall be discharged upto such extent. (3) Any payment made by a marketing co-operative society or any other institutions under sub-section (2) shall be valid and effective against any demand upon such society or institution. (4) Notwithstanding anything contained in sub-section (1) the amount of deduction from the sale proceeds shall not be more than the Percentage declared by the Registrar by General or special order in this behalf. (5) Where loans have been taken by the borrower from more than one Bank the distribution of the deducted amount shall be apportioned amongst different Banks at such rate as may be fixed by the Registrar from time to time.
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