First charge of co-operative societies on certain assets.

First charge of co-operative societies on certain assets. (1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the State Government in respect of land revenue or any money recoverable as arrears of land revenue or to any of claim of a development bank arising out of a loan granted at any time whatsoever under the Madhya Pradesh Sahkari Bhumi Vikas Bank Adhiniyam, 1966 (No. 28 of 1966), or by a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandha (Bank) Adhiniyam, 1972 (No. 32 of 1973), any debt or outstanding demand owing to a society by a member or past member or deceased member shall be first charge in favour of the society on- (a) the land owned by such member or past member or forming part of the estate of the deceased member, as the case may be; and (b) his interest in any land as a tenant if such member owns such interest; against which such debt was granted or such outstanding demand stands, for and to the extent of the debt, or outstanding demand owing by him: Provided that where any prior claim of the State Government arises out of the loan granted under the Land Improvement Loans Act, 1883 (No.19 of 1884), and such loan is granted after the grant of loan by a society, the loan granted by the society shall, notwithstanding anything contained in the said enactment, have priority over such claim of the Government. (2) No member shall alienate the whole or any part of the land or interest therein which is subject to charge under sub-section (1) until the whole amount borrowed by the member together with interest is paid in full: Provided that it shall be lawful for a member or a past member to mortgage in favour of- (i) a Co-operative Land Development Bank; or