Chapter II ISSUE OF PASS BOOKS AND MATTERS RELATING THERETO

1. (1) On the commencement of this Act, it shall be lawful for a revenue officer to provide for facilities for agricultural credit by the issue of pass books, in such form and containing such particulars as may be prescribed, to agriculturists having for the time being, land within the local limits of his jurisdiction.
2. (2) An agriculturist who desires to have a pass book may make an application to the concerned revenue officer, in such form and on payment of such fee as may be prescribed, for the issue of such pass book to him.
3. (3) Every application referred to in sub-section (2) shall contain full particulars of the land owned by the applicant or in relation to which the applicant holds an interest or in relation to the crops, if any, standing on such land or in relation to which the applicant, holds any interest.
4. (4) On receipt of the application made under sub-section (2), the revenue officer 1[shall make or cause to be made, in such manner as may be prescribed, an inquiry about the title of the applicant in relation to the lands specified in the application or any interest held by the applicant therein or in respect of any crop standing thereon]1 and where, after such inquiry, the revenue officer is satisfied with regard to the title of the applicant relating to all or any of the properties aforesaid or any part thereof, he may issue a pass book to the applicant indicating therein 2[xxx]2 the properties in relation to which the applicant has title and the extent of encumbrances, if any existing in relation to any of such properties on the date of issue of the pass book.
5. (5) The revenue officer shall retain a copy of the pass book issued by him under sub-section (4) and send a true copy thereof to the Sub-Registrar within the local limits of whose jurisdiction the properties specified in the pass book are situate, and on receipt thereof, the Sub-Registrar shall place the copy of the pass book on his records.
6. (6) if the revenue officer is satisfied that any pass book issued by him has been lost or destroyed, he may issue a duplicate pass book, on payment of such fee as may be prescribed.
7. (7) Every entry made by the revenue officer in a pass book issued by him shall be presumed to be correct.
8. (8) The entries in the pass book shall be prima facie evidence of the title of the holder thereof in respect of the land or other interest in the land or crops specified therein and shall be accepted as such by a bank for the purpose of granting financial assistance to the holder of the pass book whether or not on the security of the properties specified in the pass book.
9. (9) The revenue officer may, from time to time require the holder of the pass book to produce it before him in order to make entries regarding mutation or transfer entered or to be entered in the revenue records.

¹ Substituted by Act 23 of 1987 w.e.f. 04.06.1987.

² Omitted by Act 23 of 1987 w.e.f. 04.06.1987.

1. (1) A bank granting any financial assistance to the holder of a pass book shall make an endorsement on the pass book indicating the amount of such financial assistance and where such financial assistance has been given on the security of any property the bank shall also make an endorsement against the property on the security of which the financial assistance has been granted by it, and the endorsement so made shall have the effect of creating a charge in favour of the bank on the property against which the endorsement has been so made and the holder of the pass book shall be debarred from alienating the said property until the outstanding amount of the financial assistance granted by the bank has been repaid together with interest due thereon.
2. (2) The bank shall forward a copy of every endorsement made by it under the provisions of sub-section (1) to the revenue officer and another copy to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property which has been so charged is situate, and on receipt of the copy of such endorsement,-
   • (a) the revenue officer shall make the necessary entries in the Record of Rights maintained by him under the Karnataka Land Revenue Act, 1964 (Karnataka Act 12 of 1964) ; and
   • (b) the Sub-Registrar shall place, or cause to be placed, such endorsement on the copy of the pass book forwarded to him under section 4.
3. (3) The holder of the pass book may also produce the endorsement made by the bank on the pass book before the Sub-Registrar to enable him to satisfy himself as to whether, a copy of the said endorsement has or has not been placed on his records, and in case it has not been so done, to get the said endorsement copies on the pass book which had been forwarded to him under section 4.

Notwithstanding anything contained in the Indian Registration Act, 1908 (Central Act 16 of 1908), a charge in favour of the Bank on the property against which the endorsement has been made on the pass book under sub-section (1) of section 5, shall be deemed to have been duly registered in accordance with the provisions of that Act with effect from the date of endorsement on forwarding a copy of every such endorsement to the Sub-Registrar under sub-section (2) of section 5 within the time stipulated by the State Government for the purpose.

1. (1) No transfer made by the holder of a pass book in respect of any land specified in such pass book or any interest in such land or any crops standing thereon shall be registered by the Sub Registrar, unless the pass book is produced before him ; and on the production of the pass book, he shall make an endorsement thereon indicating the particulars of the transfer registered by him.
2. (2) Any transfer made by the holder of a pass book without complying with the provisions of sub-section (1) shall be void and shall not convey any title.

Where any charge on any land or interest therein or crops standing thereon was created in favour of a cooperative society before the commencement of this Act, it shall be lawful for an agriculturist to create, after such commencement a subsequent charge on such land or interest therein or crops standing thereon in favour of a bank, as security, for any financial assistance given to the agriculturist by the bank.

No charge or mortgage created on any land or interest or crops standing thereon after the commencement of this Act, in favour of Government or a co-operative society shall have priority over a charge or mortgage on such land or interest created by an agriculturist in favour of a bank as security for financial assistance given to the agriculturist by the Bank after the commencement of this Act and prior to the charge or mortgage in favour of Government or the cooperative society.