Chapter XI AGRICULTURE AND RURAL DEVELOPMENT BANKS

This Chapter shall apply to-

1. (a) any co-operative bank or banks advancing loans other than short term loans, to or through the Agriculture and Rural Development Bank for the purposes herein enumerated (hereinafter referred to as the Agriculture and Rural Development)", namely:--
   • (i) Agricultural or rural development;
   • (ii) Purchase of, or acquisition of title to, agricultural lands by tenants, occupants and assignees under any law for the time being in force;
   • (iii) Liquidation of Government, Institutional and other secured debts to agriculturists;
   • (iv) Acquisition, construction, rebuilding or repairing of dwelling houses in rural area.
2. (b) Any other society permitted by the Registrar under Section 142 to function as An Agriculture and Rural Development Bank. Explanation: For the purpose of this section, I. the expression "short term loan" means a loan for a duration of less than 18 months; and II. The expression "agricultural or rural development" means any work, construction or activity pertaining to agricultural and rural development which includes the following, that is to say: -
   • (i) construction and repairs of wells (including tube wells), tanks and other works for storage, supply or distribution of water for the purpose of agriculture, or for the consumption of human beings and cattle employed in agriculture,
   • (ii) Making agricultural lands fit for cultivation, improvement of lands including development of sources of irrigation.
   • (iii) renewal or reconstruction of any of the foregoing works, or alterations therein or additions thereto,
   • (iv) preparation of lands for irrigation including command area development,
   • (v) drainage to, and reclamation from, rivers or other waters, or protection from floods or erosion or other damage by water, or land,
   • (vi) Bonding and similar improvements.
   • (vii) reclamation clearance and enclosure or permanent improvement of land for agricultural purposes,
   • (viii) horticulture,
   • (ix) purchase of tools, implements, machinery including oil engines, pumping sets, electric motors for any of the purposes mentioned herein,
   • (x) purchase of tractors or power tillers or any other agricultural machinery,
   • (xi) increase in productive capacity of agricultural lands,
   • (xii) construction, rebuilding or repairing of farm houses, cattle-sheds and sheds for processing or repairing agricultural or cottage or village industrial products,
   • (xiii) purchase of machinery for processing of agricultural produce,
   • (xiv) purchase of lands for consolidation of holding under the relevant law for the time being in force,
   • (xv) animal husbandry, and dairy farming such as purchase of the milky cattle, rearing of crossbreed female calves, cattle breeding, sheep and goat rearing, piggery, poultry farming and purchase of bullocks,
   • (xvi) plantation including free crops,
   • (xvii) forestry;

(xviii) pisciculture including development of inland and marine fisheries, catching of fish and all activities connected therewith or incidental thereto,

1. (xix) sericulture or apiculture,
2. (xx) marketing, storage including rural warehouses, Godowns and cold storage and transport of agriculture, cottage and industrial products, acquisition of implements and machineries in connection with such activities including animal-driven carts,

1. (xxi) market yards for agricultural produce,
2. (xxii) bio-gas plants,

(xxiii) working capital or production credit to borrowers or investment credit,

1. (xxiv) setting up of cottage and village industries,
2. (xxv) purchase of shares in co-operative sugar factories or in any processing industry of agricultural produce,
3. (xxvi) social forestry, (xxvii) such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be agricultural or rural development purposes, or

(xxviii) All activities incidental to, or ancillary to, the abovementioned purposes.

1. (1) There shall be State Agriculture and Rural Development Bank for the State of Maharashtra. If considered necessary by the State Government, in the public interest or in the interest of the co-operative movement, there may be one or more Primary Agriculture and Rural Development Banks, but nothing in this sub-section shall be taken to require the establishment or continuance of any Primary Agriculture and Rural Development Banks.
2. (2) A reference to Land Mortgage Bank or to a Land Development Bank in any law, or instrument, for the time being in force in the State, shall with effect from the commencement of this Act, be construed as a reference to a Agriculture and Rural Development Bank within the meaning of this Chapter.
3. (3) With effect from the commencement of this Act, and until such time as the names of the Land Mortgage Banks or of the Land Development Banks and societies functioning in the State at the commencement of this Act are changed into Agriculture and Rural Development Banks, all acts done by them or mortgages and other documents executed by them or in their favour, and all suits and other proceedings filed by or against them shall be deemed to have been done, executed or filed, as the case may be, by or against them as Agriculture and Rural Development Banks. 112-A. District Loan Committee, its constitution, term of office of delegates, casual vacancies, powers of such Committee etc.—
4. (1) Notwithstanding anything contained in this Act, or in the rule made there under, or in the bye- laws of the State Agriculture and Rural Development Bank.
   • (a) There shall be a District Loan Committee for each District excluding the City of Bombay District and Bombay Suburban District.
   • (b) Every District Loan Committee shall consist of the following members, that is to say;
     • (i) Delegates, to be elected one each from every Taluka in a district

(i-a) Two members, one from the persons belonging to the Schedule Castes or

Schedule Tribes and one from the persons belonging to the weaker section, who shall be elected from the District: Provided that, in district, where there are more than seven Taluka and before the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1993, the elections to elect seven delegates on the District Loan Committee as provided by sub-clause

1. (i) as it existed then, have already been held, the State Government shall nominate on such Committee, such additional number of delegates as may be necessary from the Taluka from which no delegates are elected, so as to bring the total number of the delegates equal to the number of Taluka in such district: Provided further that, after having held the election as aforesaid, the two members to be nominated by the Registrar under sub-clause (i-a), as it existed then, have not yet been nominated by the Registrar, then the Registrar shall nominate such two members: Provided also that, term of office of all such nominated members shall be co-terminus with the term of office of the seven such delegates so elected: Provided also that, at any election held after the commencement of the Maharashtra Co- operative Societies (Amendment) Act, 1993, any member of the State Agriculture and Rural Development Bank in the District belonging to the Scheduled Castes or Scheduled Tribes, or as the case may be, weaker section, shall be eligible to contest such election;
2. (ii) The District Deputy Registrar of Co-operative Societies of the concerned district, ex-officio;
3. (iii) The Divisional Officer of the State Agriculture and Rural Development Bank of the concerned division, ex-officio,
4. (iv) the District Branch Manager of the State Agriculture and Rural Development Bank of the concerned district, ex-officio, who shall also act as the Secretary of the District Loan Committee. Explanation.—For the purpose of sub-clause (i-a), the provisions of clauses (b) and (c) of, and any order issued under clause (c) of the Explanation to Section 73-B shall apply in relation to the members to be elected there under;

1. (c) The delegates or members to be elected under sub-clause (i) and (i-a) of clause (b) shall be elected by direct election, by the members of the State Agriculture and Rural Development Bank.
2. (d) Save as otherwise provided in this section, every election to elect delegates and members shall be subject to the provisions of Chapter XI-A and shall be conducted in the manner laid down by or under that Chapter: Provided that, a reference to an election of a member or members of the Committee of a specified society in that Chapter or the rules made there under shall be deemed to be a reference to an election of delegates or members referred to in clause (b)

1. (2) Every District Loan Committee shall have a Chairman, who shall be elected by the elected delegates and the members thereof, from amongst themselves.
2. (3) Within fifteen days from the date of election of the delegates and the members under sub section (1) an officer authorised by the Collector in that behalf shall convene the first meeting of the delegates and the members for election of a Chairman. The officer so authorised shall preside over such meeting, but shall not have the right to vote.
3. (4) The term of office of members other than ex-officio members of a District Loan Committee shall be for a period of five years and shall be deemed to commence on the date of the first meeting referred to in sub-section (3) and the term of office of the Chairman shall be co- terminus with the term of such members and on expiry of their term they shall be deemed to have vacated their offices.
4. (5) A casual vacancy of an elected member, delegate member or Chairman occurring in the District Loan Committee due to any reason whatsoever shall be filled by election or nomination as the case may be as soon as may be practicable after the occurrence of the vacancy : Provided that, if the vacancy occurs within four months preceding the date on which the term of such delegate, as the case may be, member expires, the vacancy shall not, unless the Registrar otherwise directs, be filled : Provided further that, the delegate, member or Chairman elected to fill a vacancy shall held, office so long as the delegate, member or Chairman in whose place he is elected would have held office; if the vacancy had not occurred.
5. (6) The District Loan Committee shall have the power to sanction by itself or to recommend for sanction by the committee of the State Agriculture and Rural Development Bank, as the case may be, loans to such extent and for such purposes as the committee of the State Agriculture and Rural Development Bank may, from time to time, specify, and shall also perform such other functions as that committee may, from time to time, entrust to it.
6. (7) The provisions of sections 73-ID, 73A, 73-FF, 77 A, 78, clauses (j) and (k) of section 146, clauses (j) and (k) of section 147, sections 160A and 160B shall apply mutatis mutandis to the District Loan Committee as they apply in relation to a committee of a society. 112. AA election of delegate as member of Agriculture and Rural Development Bank from City of Bombay District and Bombay Suburban District.—
7. (1) Notwithstanding anything contained in this Act or the rules made there under, the members of the Agriculture and Rural Development Bank from the City of Bombay District and Bombay Suburban District shall elect one delegate from amongst themselves for every general body meeting of the members of the Bank.
8. (2) Subject to the provisions of section 14, the Agriculture and Rural Development Bank shall make bye-laws for the purpose of the election of a delegate under sub-section (1).
9. (3) The power to make bye-laws conferred by sub-section (2) is subject to the condition of the bye-laws being made after previous approval of the Registrar. 112. B General Body and committee of State Agriculture and Rural Development Bank.—
10. (1) Notwithstanding anything contained in this Act, or in the rules made there under, or in the bye-laws of the State Agriculture and Rural Development Bank:
    • (a) The delegates and members elected in accordance with the provisions of clauses (c) and (d) of sub-section (1) of section 112-A and sub-section (1) of section 112-AA shall, for the purpose of section 72, constitute the general body of members of the State Agriculture and Rural Development Bank.
    • (b) the Committee of the State Agriculture and Rural Development Bank shall consist of the following members, namely :-
      • (i) the Chairman of all the District Loan Committees;
      • (ii) (A) Two members, one each belonging to the Scheduled Castes or Scheduled Tribes and the weaker section, and
    • (B) Three women members— From amongst the members of the State Agriculture and Rural Development Bank, who shall be co-opted by the committee in its first meeting to be convened by the Collector or an officer authorised by him in that behalf but the Collector or such officer shall not, while presiding over such meeting, have a right of vote; and where there is failure of the committee to so co-opt such member or members, the Collector or the Officer authorised by him shall report such failure to the Registrar within a period of seven days from the date of such meeting and thereupon the Registrar shall, within a period of seven days from receipt of such report, appoint on the committee such member or members, as the case may be from amongst persons entitled to be so Co-opted. Explanation – For the purposes of this sub-clause, the provisions of clauses (b) and
    • (c) of, and any other issued under clause (c) of the explanation to section 73-B shall apply in relation to the members to be co-opted or appointed under this clause.
      • (iii) the Chairman of the Maharashtra State Co-operative Bank (or his representative), ex-officio;
      • (iv) two representatives of the employees of the State Agriculture and Rural Development Bank to be selected by the recognized union or unions of employees, from amongst such where there is no union at all, the employees shall be held by the collector in the manner laid down in Chapter XI-A of this Act.
      • (v) The Commissioner for Co-operative and Registrar of Co-operative societies, Maharashtra State (or his representative), ex-officio;
      • (vi) An Officer from the Agriculture and Co-operation Department, who is holding the post of Officer on Special Duty or any other post not lower than that of a Deputy Secretary to Government to be nominated by State Government, ex- officio;
      • (vii) the Managing Director of the State Agricultural and Rural Development Bank ex-officio, who shall also act as Secretary of the Committee.
11. (2) The members referred to in sub-clause (i) of clause (b) of subsection (1) shall cease to be members of the committee on the date of expiry of their terms as Chairman of the District Loan Committees and they shall be deemed to have vacated their offices and the term of offices of the members referred to in sub-clauses (ii) and (iv) of clause (b) of sub-section (1) shall be co-terminus with the term of office of the members referred to in sub-clause (i) of clause (b) of sub-section (1) and they shall likewise on expiry of their term of office ceased to be members of the committee and shall be deemed to have vacated their offices.
12. (3) (a) The Committee shall have a Chairman and a Vice-Chairman. Within 15 days after the two members referred to in sub-clause (ii) of clause (b) of sub-section (1) are co-opted or appointed as the case may be, the Collector or an Officer authorised by him in that behalf shall convene a meeting of the members of the Committee for election of a Chairman and a Vice-Chairman who shall be from the members, referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised officer, but such presiding officer and the members referred to in sub-clauses (iii), (iv), (v), (vi) and (vii) of clause (b) of sub-section (1) shall not have a right to vote at such meeting.
    • (b) Notwithstanding anything contained in clause (a), within 15 days from the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1988, the Collector or an Officer authorised by him in that behalf shall convene a meeting of the members of the Committee for the election of a Vice-Chairman who shall be from the members referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised Officer, but such presiding officer and the members referred to in sub-clauses (iii) to (vii) of clause (b) of sub-section (1) shall not have a right to vote at such meeting. The Vice-Chairman so elected shall hold office as such Vice-Chairman subject to the provisions of subsection (4). Explanation.—For the purposes of this sub-section, the expression "Collector" shall have the same meaning as in clause (a) of sub-section (2) of section 144-A:
13. (4) Without prejudice to the provisions of sub-section (3), the Chairman and Vice-Chairman shall be elected every year in the first meeting of the Committee convened within one month after the close of the co-operative year by the Collector or an Officer authorised by him in that behalf and where the Chairman or Vice-Chairman is to be elected to fill the vacancy occurred due to any reason whatsoever the Collector or an Officer authorised by him in that behalf shall convene the meeting of the Committee within one month from the date of occurrence of the vacancy and the provisions of sub-section (3) shall mutatis mutandis apply to such meetings. The Chairman and Vice-Chairman elected under sub-section (3) or sub-section, (4) shall cease to be the Chairman and Vice-Chairman on the date preceding the date of meeting held for election of the Chairman and Vice-Chairman after the close of the co-operative year and shall vacate his office.
14. (5) A casual vacancy of a member referred to in sub-clauses (ii) and (iv) of clause (b) of sub- section (1) due to any reason whatsoever shall be filled in by co-option by the committee or by selection by the recognized union or unions of the employees, as the case may be, within two months from the occurrence of such vacancy; and where there is failure on the part of the committee or such union or unions, as the case may be, to do so, then appointment by the Registrar : Provided that, if the vacancy occurs within four months preceding the date on which the term of such member expires, the vacancy shall not, unless the Registrar otherwise directs, be filled : Provided further that, the member so co-opted, selected or appointed to fill a vacancy shall hold office so long only as the member in whose place he is co-opted, selected or appointed would have held office, if the vacancy had not occurred.
15. (6) Where a person becomes a member by virtue of holding any office or being an employee, he shall cease to be a member of the committee, as soon as he ceases to be holder of that office or ceases to be such employee, as the case may be.
16. (7) The committee shall exercise such powers and perform such functions as may be conferred or entrusted to it by this Act or by the rules made there under or by the bye-laws of the State Agriculture and Rural Development Bank.
17. (8) Without prejudice to the other provisions relating to the procedure at the meeting of the committee as may be laid down by rules or bye-laws made in that behalf, one-third of the total number of members of the committee shall form the quorum at any meeting of the committee. 112-C. deleted

1. (1) The Registrar, or any other person appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfillment of the obligations of the State Agriculture and Rural Development Bank to the holders of debentures issued by it.
2. (2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and shall have perpetual succession and a common seal, and in his corporate name may sue and be sued.
3. (3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Agriculture and Rural Development Bank and the Trustee, as modified from time to time by mutual agreement between the State

Issue of debentures.—

1. (1) With the previous sanction of the State Government and the Trustee, and subject to such terms and conditions as the State Government may impose, the State Agriculture and Rural Development Bank in the discharge of its function as an Agriculture and Rural Development Bank may issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient on me security of mortgages, instruments of hypothecation, guarantee, pledge or charge created in favour of the Bank, or mortgages, instruments of hypothecation, guarantee, pledge or charge to be acquired or partly on mortgages or on any of the aforesaid instruments held and partly to be acquired, and properties and other assets of the State Agriculture and Rural Development Banks.
2. (2) Every debenture may contain a term fixing a period not exceeding thirty years from the date of issue during which it shall be redeemable, or reserving to the committee the right to redeem at any time in advance of the date fixed for debenture not less than three months notice in writing.
3. (3) The total amount due on debentures issued by the State Agriculture and Rural Development Bank and outstanding at any time, shall not exceed-
   • (a) where debentures are issued against mortgages instruments of hypothecation, guarantee pledge or charge held, the aggregate of
     • (i) the amounts due on the mortgages 4and any or all of the aforesaid instruments;
     • (ii) the value of the properties and other assets transferred or deemed to have been transferred under section 121 by the Primary Agriculture and Rural Development Banks to the State Agriculture and Rural Development Bank and subsisting as such time; and
     • (iii) The amounts paid under the mortgages and the other instruments aforesaid and the unsecured amounts remaining in the hands of the State Agriculture and Development Bank or the Trustee at the time;
   • (b) Where debentures are issued otherwise than on mortgages or the instrument aforesaid held, the total amount as calculated under clause (a) increased by such portion of the amount obtained on the debentures as is not covered by a mortgage instrument of hypothecation, guarantee, pledge or charge.

The principal of, and interest on the debentures issued under the preceding section, or any specified portion thereof, may carry the guarantee of the State Government, subject to such maximum amounts as may be fixed by the State Government, and to such conditions as the

Vesting of property in Trustee and Debenture holders, charge on assets.— Upon the issue of debentures, under the provisions of Section 114, the mortgage properties and other assets including the properties covered by the instruments referred to in sub- section (3) of that section held by the State Agriculture and Rural Development Bank, shall vest in the Trustee, and the holders of debentures shall have a floating charge on all such mortgages, instruments and assets and on the amount paid under such mortgages, and such instruments and remaining in the hands of the State Agriculture and Rural Development Bank or of the Trustee.

Subject to the provisions of this Act and the rules made there under, it shall be competent for the Agriculture and Rural Development Banks to advance loans for the purposes referred to in section 111, and to hold lands or dwelling houses in rural area the possession of which is transferred to them under the provisions of this Chapter.

A written order by the Agriculture and Rural Development Bank, or persons or committee authorised under the bye-laws of the Bank to make loans for all or any of the purposes specified in section 111, granting, either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein for the benefit of the land or for the productive purpose or for the purpose of dwelling house in rural area specified therein, shall for the purposes of this Act be conclusive of the following matters, that is to say:-

1. (a) that the work described or the purpose for which me loan is granted, is an improvement or productive purpose or productive purpose or for the purpose of dwelling house in rural area, as the case may be, within the meaning of section 111;
2. (b) that the person had at the date of the order a right to make such an improvement or incur expenditure for productive purposes or for the purpose of dwelling house in rural area as the case may be and;
3. (c) that the improvement in one benefiting the land or such dwelling house specified and productive purpose or for the purpose of dwelling house in rural area concerns the land or such dwelling house offered in security, or any part thereof, as may be relevant

1. (1) A mortgage executed in favour of an Agriculture and Rural Development Bank, shall have priority over any claim of the Government arising from a loan granted after the, execution of the mortgage under the Land Improvement Loans Act, 1883 (XI of 1883) or the Agriculturists Loans Act, 1884 (XI of 1884) or under any other law for the time being in force.
2. (2) Notwithstanding anything contained in the Bombay Tenancy and Agricultural Lands Act, 1948, (BOM. LXVII of 1948) or any other corresponding law for the time being in force, where a mortgage in favour of an Agriculture and Rural Development Bank is in respect of land in which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and his interest therein, under such law shall be subject to the prior charges of an

Mortgages and other instruments executed in favour of an Agriculture and Rural Development Bank to stand vested in State Agriculture and Rural Development Bank.— The mortgages instruments of hypothecation guarantee, pledge or charge executed in favour of, and all other assets transferred to, an Agriculture and Rural Development Bank, by the members thereof, before or after the commencement of the Act, shall, with effect from the date of such execution or transfer, be deemed to have been transferred by such an

Registration of Mortgage, Lease, etc., executed in favour of Agriculture and Rural Development Banks.— Notwithstanding anything contained in the Registration Act, 1908, it shall not be necessary to register a mortgage, lease, hypothecation deed, loan bond, surety bond, guarantee deed, promissory note or loan agreement executed in favour of the Agriculture and Rural Development Bank, provided the bank sends, within such time and in such manner as may be prescribed a copy of such instrument to the concerned registering authority; and on receipt of the copy of the registering authority shall file the same in the relevant books prescribed under the Registration Act, 1908 : Provided that, any such instrument executed in favour of the bank before the date of publication of the Maharashtra Co-operative Societies (Amendment) Act, 1989 in the Official

Mortgages and other instruments not to be questioned on insolvency of mortgagors 3or executants.— Notwithstanding anything contained in the Presidency-Towns Insolvency Act, 1909, or the provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage or any other instrument supporting the loan executed in favour of an Agriculture, and Rural Development Bank, shall not be called in question in any insolvency proceedings on the ground that it was not executed in good faith or valuable consideration, or on the ground that it was executed in order to give the Bank a preference over other creditors of the mortgagor or of the executants of the instrument.

1. (1) Mortgages and other instruments in respect of loans by Agriculture and Rural Development Bank or the State Agriculture and Rural Development Bank either before or after the commencement of this Act, by the manager of Hindu joint family for the improvement of agricultural land or of the methods of cultivation or for financing any other means to raise the productivity of the land, or for the purchase of land, or for creation of new movable or immovable assets or for the purpose of acquisition, construction, rebuilding or repairing of a dwelling house in rural area shall be binding on every member of such joint Hindu family notwithstanding any law to the contrary.
2. (2) In other cases, where a mortgage or other instruments executed in favour of Agriculture and Rural Development Bank or State Agriculture and Rural Development Bank either before or after the commencement of this Act, is called in question on the ground that it was executed by the manager of a Hindu joint family for purpose not binding on the members (whether such members have attained majority or not) thereof, the burden of proving the same shall, notwithstanding any law to the contrary, lie on the party alleging it.

Agriculture and Rural Development Bank, subject to certain modifications. — Section 8 of the Hindu Minority and Guardianship Act, 1956 (XXXII of 1956) shall apply to mortgages and other instruments in favour of an Agriculture and Rural Development Bank, subject to the modification or that reference to the Court therein shall be construed as reference to the Collector or his nominee, and the appeal against the order of the Collector or his nominee shall lie to the Commissioner.

1. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (IV of 1882) or any other law for the time being in force, no mortgagor of property mortgaged to an Agriculture and Rural Development Bank, shall except with the prior consent in writing of the bank, and subject to such terms and conditions as the bank may impose, lease or create any tenancy rights or any such property: Provided that, the rights of an Agriculture and Rural Development Bank shall be enforceable against the tenant purchaser, the lessee or the tenant, as the case may be, as if he himself were a mortgagor.
2. (2) Where land, mortgaged with possession to an Agriculture and Rural Development Bank, is in actual possession of a tenant, the mortgagor or an Agriculture and Rural Development Bank shall give notice to the tenant to pay rent to an Agriculture and Rural Development Bank during the currency of the lease and the mortgagee, and on such notice being given, the tenant shall be deemed to have adorned to the an Agriculture and Rural Development Bank.

Notwithstanding anything contained in section 121, all monies due under the mortgage shall unless otherwise directed by the State Agriculture and Rural Development Bank or the Trustee, and communicated to the mortgagor, be payable by the mortgagor to the Agriculture and Rural Development Bank, and such payments shall be as valid as if the mortgage had not been so transferred and the Agriculture and Rural Development Bank shall in the absence of specific directions to the contrary, issued by the State Agriculture and Rural Development

Powers of Agriculture and Rural Development Bank where mortgaged or encumbered property is destroyed or security becomes insufficient.— Where any immovable or movable property mortgaged or encumbered in any other manner to an Agriculture and Rural Development Bank is wholly or partially destroyed, or for any reasons the security or surety is rendered insufficient and the debtor, having been given a reasonable opportunity by the bank to provide further security or surety enough to render the whole security or surety sufficient or to repay such portion of the loan as may be determined, by the bank, has failed to provide such security or surety or to repay such portion of the loan, then the whole of the loan shall be deemed to fall due at once; and the bank shall be entitled to take action against such debtor under section 132 or section 133 for the recovery thereof. Explanation: Security shall be deemed insufficient within the meaning of this section, unless the value of the mortgaged or encumbered property (including improvements made thereon) exceeds the amount for the time being due on the mortgage or encumbrance by such proportion as may be specified in the rules, regulations or the bye-laws of the Agriculture and

Right of Agriculture and Rural Development Bank to buy mortgaged property.—

1. (1) Property purchased under section 133(3) by, and property transferred under section 100 to the Agriculture and Rural Development Banks, may be disposed of by such banks by sale within such period as may be fixed by the Trustee, subject to the condition that such sales shall be in favour only of agriculturists eligible to hold land under the Bombay Tenancy and Agricultural Lands Act, 1948, or any corresponding law for the time being in force, or in favour of Tribal, if such property belongs to a Tribal or may be leased out by them on such terms and conditions as may be laid down by the State Government from time to time. Explanation — for the purposes of this sub-section and section 133A, "Tribal" means a person belonging to a Scheduled Tribe within the meaning of the Explanation to Section 36 of the Maharashtra Land Revenue Code, 1966, and includes his successor in interest.
2. (2) Nothing contained in any law for the time being in force fixing the maximum limit of agricultural holdings shall apply to the acquisition or holding of land by the Agriculture and

Recovery of loans by Development Banks.— All loans granted by the Agriculture and Rural Development Banks, all interests (if any) chargeable thereon, and costs (if any), incurred in making the same, shall when they become due, be recoverable by the Agriculture and Rural Development Bank concerned.

1. (1) If any installment payable under a mortgage, hypothecation deed, loan bond, surety bond or other instruments executed in favour of the Agriculture and Rural Development Bank, or any part of such installment, has remained unpaid for more than one month from the date on which it fell due, the bank shall, in addition to any other remedy available to the bank, apply to the Registrar for recovery of such installments or part thereof, by distrait and sale of the produce of the mortgaged or otherwise encumbered land and properties of and on such land including the standing crops thereon, or the movable property encumbered under hypothecation deed or loan bond. The installments due or any part thereof, shall also be recoverable by distrait and sale of the new property created by the debtor by converting the original movable property for which the loan was granted by the bank.
2. (2) On receipt of such application, the Registrar, shall notwithstanding anything contained in the Transfer of Property Act, 1882, take action in the manner prescribed for the purpose of distaining and selling of the produce or the properties referred to in sub-section (1)

Sale of mortgaged or encumbered property.—

1. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the Agriculture and Rural Development Bank or any person authorised by it in this behalf shall, in case of default of payment of mortgage money or loan amount or any part thereof, have power, in addition to any other remedy available to the bank, to bring the mortgaged or otherwise encumbered property to sale by public auction in the village in which such property is situated or at the nearest place of public resort, without the intervention of the Court : Provided that, no action shall be taken under this sub-section and no such power shall be exercised, unless and until—
   • (a) the Agriculture and Rural Development Bank has been previously authorised to exercise the power conferred under this sub-section after hearing the objections, if any, of the debtor or debtors;
   • (b) notice in writing requiring payment of such debt or loan money or part thereof has been served upon,
     • (i) the debtor or each of the debtors;
     • (ii) any person who has any interest in or charge upon such property or upon the right to redeem the same as far as is known to the bank;
     • (iii) any surety for the payment off the debt or loan or any part thereof; and
     • (iv) any creditor of the debtor who has in a suit for administration of his estate obtained a decree for sale of the concerned property; and
   • (c) Default has been made in payment of such debt or loan or part thereof, for three months after service of the notice.
2. (2) Where the Agricultural and Rural Development Bank fails to take action against the defaulter under section 129 or 132 or under this section, the Trustee may take such action. If such action is taken by the Trustee, the provisions of this chapter and of any rules prescribed shall apply in respect thereto, as if all references to the Agriculture and Rural Development Bank in the said provision were references to the Trustees.
3. (3) Notwithstanding anything contained in any other law for the time being in force, it shall be lawful for the Agriculture and Rural Development Bank to purchase any mortgaged or encumbered property sold under this Chapter. 133A. mortgaged or encumbered property of tribal not to be sold to non-tribal at public auction under section 133 — Notwithstanding anything contained in this Act or in any other law for the time being in force, where the mortgaged or encumbered property belongs to a Tribal, it shall not be sold to any non-Tribal bidder at public auction under section 133 or otherwise transferred to a non-tribal under the provisions of this Act.

1. (1) On effecting the sale by an Agriculture and Rural Development Bank under section 133, the bank shall, in the prescribed manner, submit to the State Agriculture and Rural Development Bank and the Registrar a report setting forth the manner in which the sale has been effected and the result of the sale, and the State Agriculture and Rural Development Bank may, with the approval of the Registrar confirm the sale or cancel it.
2. (2) Where the sale is effected by the State Agriculture and Rural Development Bank or the Trustee under section 133 the State Agriculture and Rural Development Bank or the Trustee, as the case may be, shall in the prescribed manner submit to the Registrar a report setting forth the manner in which the sale has been effected and result of the sale, and the Registrar may confirm or cancel the sale.

The proceeds of every sale effected under section 133, and confirmed under the preceding section shall be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of any or all interest due on account of the mortgage or encumbrance in consequences whereof, the mortgaged or otherwise encumbered property was sold, and thirdly in payment of the principal due on account of the mortgage or encumbrance including costs and charges incidental to the recovery. If there remains any residue from the proceeds of sale, the same shall be paid to the person proving himself interested in the property sold or if there are more such persons than one, then to such persons up on their joint receipt or according to their respective interest therein, as may be determined by the Agriculture and Rural Development Bank: Provided that, before any such payments are made the unsecured dues owing;

1. (a) from the mortgagor or the debtor to the Agriculture and Rural Development Bank may be adjusted, and
2. (b) from any member or past member to whom the mortgagor or the debtor is indebted may also be adjusted under the written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.

1. (1) Where a sale of mortgaged property has become absolute under section 134 and the sale- proceeds have been received in full by the Agriculture and Rural Development Bank, the bank shall grant a certificate to the purchaser in the prescribed form certifying the property sold, the sale-price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale became absolute; and upon the production of such certificate the Sub-Registrar appointed under the Indian Registration Act, 1908 (XVI of 1908), within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register relating to immovable property.
2. (2) (a) Where the mortgaged property sold is in the occupancy of the mortgagor, or of some person on his behalf, or some person claiming under a title created by the mortgagor, subsequent to the mortgage in favour of the State Agriculture and Rural Development Bank or an Agriculture and Rural Development Bank and a certificate in respect thereof, has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person whom he may appoint to receive delivery on his behalf, in possession of the property.
   • (b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the same, and a certificate in respect thereof, has been granted under the foregoing sub- section, the Collector shall on the application of the purchaser and after notice to such tenants or other persons, order the delivery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and proclaiming to the occupant by beat of drum or other customary mode at some convenient place that the right, title and interest of the mortgagor have been transferred to the purchaser.
3. (3) Where any property is sold in the exercise or purported exercise of a power of sale under section 133, the title of the purchaser shall not be questioned on the ground that the circumstances requited for authorizing the sale had not arisen or due notice of the sale was not given, or the power of sale was otherwise improperly or irregularly exercised: Provided that, any person who suffers damage on account of unauthorized, improper or irregular exercise of such power shall have a remedy in damages against the Agriculture and

Recovery of loans on certificate by Registrar.—

1. (1) Notwithstanding anything contained in sections 91 and 98, on an application made by an Agriculture and Rural Development Bank for the recovery of arrears of any sum advanced by it to any of its members and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such enquiries as he deems fit, grant a certificate for the recovery of the amount stated therein, to be due as arrears.
2. (2) A certificate by the Registrar under sub-section (1) shall be final and conclusive as to arrears due. The arrears stated to be due therein, shall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue.
3. (3) It shall be lawful to the Collector to take precautionary measures authorised by sections 140 to 144 of the Bombay Land Revenue Code, 1879 (BOM. V of 1879) or any law or provision corresponding thereto, for the time being in force until the arrears due to the Agriculture and Rural Development Bank together with interest and any incidental charges incurred in recovery of such arrears, are paid or security of such arrears is furnished to the satisfaction of the Registrar.
4. (4) It shall be competent for the Registrar or a person authorised by him to direct conditional attachment of the property of the mortgagor until the arrears due to the Agriculture and Rural Development Bank together with interest and any incidental charges incurred in recovery of such arrears are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 95 shall apply mutatis mutandis to conditional attachment of any property made or to be made under his section.

1. (1) Subsection (1) deleted.
2. (2) Any amount due to an Agriculture and Rural Development Bank (including cost of recovery thereof) shall on an application by it in this behalf be recoverable by the Collector, or any officer including an Officer of the Agriculture and Rural Development Bank specially authorised by the Collector in this behalf, in all or any of the following modes, namely :-
   • (a) from the borrower-as if they were arrears of land revenue due by him;
   • (b) out of the land for benefit of which the loan has been granted as if they were arrears of land revenue due in respect of that land;
   • (c) from a surety (if any) as if they were arrears of land revenue due by him;
   • (d) Out of the property comprised in the collateral security (if any) according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which the revenue is due.

At any sale of moveable or immovable property, held under the provisions of this Chapter, no officer or employee or any member of the family of such officer or employee of an Agriculture and Rural Development Bank, except on behalf of the bank of which he is an officer or any employee, and no person having any duty to perform in connection with such sale, shall either directly or indirectly bid for or acquire or attempt to acquire any interest in such property.

Section 40 of Bombay XXVIII of 1947 not to apply to alienation in favour of Agriculture and Rural Development Banks.— Nothing contained in section 40 of the Bombay Agricultural Debtors Relief Act, 1947, or any corresponding law for the time being in force in any part of the State shall apply to any alienation in favour the Agriculture and Rural Development Banks.

1. (1) It shall be competent for the State Government to constitute one or mo Guarantee Funds on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise as a result of loans being made by the Agriculture and Rural Development Banks on titles of immovable property subsequently found to be defective or for any other purpose under this Chapter, for which in the opinion of the State Government it is necessary to provide for or create a separate Guarantee Fund.
2. (2) The State Agriculture and Rural Development Bank and Agriculture and Rural Development Bank shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilisation of such funds shall be governed by such rules, as may made by the State Government in this behalf.

Agriculture and Rural Development Bank.— It shall be competent for the Registrar to permit any society or Class of Societies to function as an Agriculture and Rural Development Bank under such terms and conditions and for such period as he may deem fit.

The provisions of section 102 and 103 of the Transfer of Property Act, 1882, and of any rules made under section 104 thereof, shall apply, so far as may be in respect of all notices to be served under this Chapter.

BOM. XXVIII of 1942—

1. (1) Where any works, included in a land improvement scheme which has come into force under the Bombay Land Improvement Schemes Act, 1942, are carried out at the cost or part cost of the State Government, and such cost is to be recovered from the owners of lands (other than Government) included in the scheme as shown in the statement prepared under section 13 or in the interim or final statement prepared under section 13 A of that Act; then notwithstanding anything contained in this Act, all the rights and liabilities of the State Government for the recovery of the cost or part cost from the owners of land shall stand transferred to an Agriculture and Rural Development Bank, in relation to such owners of lands and subject to such terms and conditions (including any condition regarding giving of any guarantee by the State Government) as may be agreed upon between the State Government and such Agriculture and Rural Development Bank; and for arriving at such agreement, every owner of land shall produce before the Bank all such documents, and other evidence relating to his land included in such scheme as the Bank may require.
2. (2) On such transfer of rights and liabilities of the State Government, the Agriculture and Rural Development Bank, shall pay to the State Government an amount equal to the extent of the liability accepted by it under such agreement, and the State Government shall inform the owners of lands concerned of such transfer; and thereupon, the provisions of this Act and rules there under in so far as they provide for advancing of loans (including provision for mortgaging of property) and recovery thereof shall apply in relation to the amount of cost to be recovered from each owner of land as they apply in relation to advancing of loans and recovery thereof (including interest) as if such owner was a member of the Agriculture and Rural Development Bank. The transfer of the rights and liabilities and payment made in accordance therewith shall discharge the owners of lands of their ability to make payment to the State Government under the Bombay Land Improvement Schemes Act, 1942, but to the extent only of their respective liability accepted by the Bank.

Agriculture and Rural Development Bank and make regulation.— The Committee of the State Agriculture and Rural Development Bank shall have a general power of supervision over Agriculture and Rural Development Banks and may, with the previous sanction of the State Government, make regulations, not inconsistent with this Act or the rules made there under, for all or any of the following matters, namely :-

1. (a) for the inspection of the account books, and proceedings of Agriculture and Rural Development Banks;
2. (b) for the submission of returns and reports by such banks in respect of their transactions;
3. (c) for the periodical settlement of accounts between such banks and the State Agriculture and Rural Development Bank being accounts relating to the payment of the amounts recovered by such banks on mortgages transferred to the State Agriculture and Rural Development Bank;
4. (d) for the form in which applications to such banks for loans shall be made and for the valuation of properties offered as security for such loans;
5. (e) for the investment of moneys realized from the mortgagors;
6. (f) the conditions of service of employees of such hanks;
7. (g) the program and policy to be followed by such banks for making loans;
8. (h) the types and extent of security to be obtained by such banks for advancing loans;
   • (i) Generally, for the purpose of safeguarding the interest of the parties; furtherance of activities of such banks, and carrying out the purposes of this Chapter. 144-1A. Reorganization, amalgamation or division of Agriculture and Rural Development Banks, in public interest, etc.-

1. (1) Notwithstanding anything in the Act or in any rules, or bye-laws made there under, it shall be lawful for the State Government to provide from time to time, by an order made under and in accordance with the provisions of section 18, for the reorganization of the State Agriculture and Rural Development Banks, either by amalgamating with it all or of any of the Primary Agriculture and Rural Development Banks or otherwise; or for the division of the State Agricultural and Rural Development Bank into a State Agriculture and Rural Development Bank and one or more Primary Agriculture and Rural Development Banks as may be considered necessary; or for the amalgamation or division of all or any of the Primary Agriculture and Rural Development Banks among themselves. Accordingly, for the purposes of this section, in section 18 and in any rules made there under, for the word "Registrar", wherever it occurs, the words "State Government" shall be deemed to be substituted.
2. (2) Where there is no Primary Agriculture and Rural Development Bank in the State or in any part thereof, or Primary Agriculture and Rural Development Banks are merged with the State Agriculture and Rural Development Bank, the State Agriculture and Rural Development Bank may establish and maintain as many branches as may be deemed necessary; and shall function also as a Primary Agriculture and Rural Development Bank through the State or in the area concerned, as the case may be. Any reference of a Primary Agriculture and Rural Development Bank in this Act, or any other law for the time being in force or in any instrument, shall then, as the context may require, be construed as a reference of the State Agriculture and Rural Development Bank or its branches concerned, or be read subject to such modifications as may be necessary due to absence of any Primary Agriculture and Rural Development Bank due to merger of the Primary Agriculture and Rural Development Bank or Banks in the State Agriculture and Rural Development Bank.