Chapter III RECOVERY OF DUES BY CREDIT AGENCIES

Nothing in any law shall prevent in any manner a credit agency from causing any land or any interest therein mortgaged or charged to it by an agriculturist to secure any financial assistance, to be attached and sold through a civil court and applying the proceeds of such sale towards all moneys due to it from that agriculturist including the costs and expenses as may be awarded by the court.

(1) On an application made by a credit agency for the recovery of arrears of any sum due to it by an agriculturist towards the financial assistance given to him and on its furnishing a statement of accounts in respect of the arrears , the prescribed officer may after making such enquiries as he deems fit and after giving the agriculturist a reasonable opportunity of being heard, grant a certificate for the recovery of the amount stated therein to be due.

(2) A certificate by the prescribed officer under sub-section (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein shall be recoverable as if it were an arrear of land revenue.

Explanation.- For the purposes of this section, ''agriculturist'' includes his co-obligants and sureties and their legal representatives to the extent of the assets of the deceased in their hands.

(3) The actual period during which any proceedings under this Act or rules made thereunder were pending shall be excluded while computing the period of limitation for filing a suit for the recovery of any monies due in respect of financial assistance under this Act.

(1) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for a credit agency to purchase agricultural land or interest therein or any other immoveable property which has been charged or mortgaged to it at a sale held in enforcement of the mortgage executed in its favour in respect of the financial assistance given when no person has offered to purchase it for a price which is sufficient to pay to the credit agency the moneys due to it and provisions of Chapter IV of the Karnataka Land Reforms Act, 1961 shall not be applicable in respect of the property so purchased.

(2) The property so purchased shall be disposed of by such credit agency by sale within a period of five years from the date of purchase.

(3) The sale by a credit agency of such property shall be subject to the provisions of the Karnataka Land Reforms Act, 1961 and the Karnataka Prevention of Fragmentation and Consolidation of Holdings Act, 1966.

(4) (a) The right of sale under sub-section (2) shall be subject to the condition that the credit agency shall give notice to the agriculturist referred to in sub-section (1) of section 12 that if he actually pays within the time specified in the notice which shall not be less than sixty days,-

(i) the amount specified in the proclamation of sale for the recovery of which the sale was ordered less any amount which may since the date of such proclamation of sale have been received by the credit agency towards such amount; and

(ii) such other sums including interest as may be prescribed.

(b) The credit agency shall specify in the notice the amount to be paid.

(c) If the agriculturist actually pays the amount in terms of the notice the credit agency shall reconvey the property to him at his cost.

Notwithstanding anything contained in any law for the time being in force a credit agency shall, subject to the provisions of sub-section (1) of section 13, have the right to lease the land acquired by it under the said sub-section :

Provided that the term of such lease shall not be more than one year at a time and that the lessee shall not acquire any interest in the land.

Notwithstanding anything contained in the Registration Act, 1908, no fee under the said Act shall be payable in respect of an instrument by which immovable property is mortgaged or charged under this Act or by which it is released from such mortgage or charge.

(1) The State Government, may, after previous publication, by notification, make rules to carry out the purposes of the Act.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely:-

(i) the form of declaration under section 6 ;

(ii) the time within which and the manner in which the credit agency should send a copy of the instrument referred to in section 9;

(iii) prescribing the officer for purposes of section 12.

(3) Every rule made under this section shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date on which the modification or annulment is notified by the State Government in the official Gazette have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.