Himachal Pradesh Co-operative Land Development Banks (Amendment) Act, 1987*
| [Himachal Pradesh Act No. 16 of 1987]1 | [22nd July, 1987] |
An Act to amend the Himachal Pradesh Co-operative Land Development Banks Act, 1979 (Act No. 23 of 1979)
It is hereby enacted by the Legislative Assembly of Himachal Pradesh in the Thirty-eighth Year of the Republic of India as follows:-
1. For Statement of Objects and Reasons see R.H.P. Extra, dated 16.5.1987, P. 815.
* Received the assent of the President of India on the 22nd July, 1987 and was published in Rajpatra, Himachal Pradesh, (Extra-ordinary) dated the 28th July, 1987 at page 1255-1267
1. Short title and commencement.- (1) This Act may be called the Himachal Pradesh Co-opertive Land Development Banks (Amendment) Act, 1987.
(2) It shall come into force on such 1date as the State Government may; by notification in the Official Gazette, appiont.
1. Act came into force in whole of Himachal Pradesh w.e.f. 16th November 1987 ride Notification No. 7-41/748-IV, dated 2-11-1987, published in R.H.P. Extra, dated 17-12-1987, at page 2469-2470.
2. Amendment of long title.- For the word "LAND" occurring in the long title of the Himachal Pradesh Co-operative Land Development Banks Act, 1979 (23 of 1979) (hereinafter called the principal Act), the words "AGRICULTURE AND RURAL" shall be subsititued.
3. Amendment of preamble.- For the words "co-operative land development banks" occurring in the preamble to the principal Act, the words "co-operative agriculture and rural development banks" shall be substituted.
4. Amendment of section 1.- For the word "Land" occurring sub-section (1) of section 1 of the principal Act, the words "Agriculture and Rural" shall be substituted.
5. Amendment of section 2.- In section 2 of the principal Act,-
(i) after clause (a), the following clause (aa) shall be inserted, namely:-
"(aa) Gehan" means a special charge on movable or immovable property, in favour of the Agriculture and Rural Development Bank or a Primary Agriculture and Rural Development Bank by a mere declaration in writing by the borrowers for securing the payment of money advanced, or to be advanced, by way of loan, which will have all the characteristics of a valid mortagage";
(ii) in clause (c) for "Land Development Bank", the words "Agriculture and Rural Development Bank"; and for "Primary Land Development Bank", the words "Primary Agriculture and Rural Development Bank" shall be substituted;
(iii) in clause (d), for the words "Primary Land Development Bank", the words "Primary Agriculture and Rural Development Bank"; and for the words "Co-operative Land Development Bank", the words "Co-operative Agriculture and Rural Development Bank" shall be substituted;
(iv) after clause (d), the following clause (dd) shall be inserted, namely:-
"(dd) "mortgage" means a security by way of mortgage for the payment of any definite and certain sum of money advanced or ent at the time, or previously due or owing, or forborne to be paid, being payable or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon on current account, together with any sum already advanced or due, or without, as the case may be. And includes any charge or lien on any property for securing money or money's worth"; and
(v) in clause (i) for the words "the Himachal Pradesh. State Co-operative Land Development Bank Ltd.", the words "the Himachal Pradesh State Co-operative Agriculture and Rural Development Bank Ltd." shall be substituted.
6. Amendment of section 3, 4, 15, 16, 20, 34, 37, 43, 44, 46, 48, 51, 52, 53 and 54.- For the words "Land Development Bank" wherever these occur insect-ions 3, 4, 15, 16, 20, 34, 37, 43, 44, 48, 52, 53 and 54 of the principal Act, the words "Agriculture and Rural Development Bank"; and for the words "Primary Land Development Bank" wherever these occur in sections 4, 46, 51 and 52 of the principal Act, the words "Primary Agriculture and Rural Development Bank" shall be substituted.
7. Amendment of section 6.- In section 6 of the principal Act, for the words "The mortgages" occurring in the beginning, the words "The Gehan created and mortgages executed"; and for the words "Primary Land Development Sank", the words "Primary Agriculture and Rural Development Bank" shall be substituted.
8. Amendment of section 7.- In the heading and items (i) and (ii) of section 7 of the principal Act, for the word "mortgages" wherever it occurs, the words "Gehan, mortgages, hypothecations" shall be substituted.
9. Amendment of section 9.- In section 9 of the principal Act,-
(a) for the word "mortgages" occurring for the first time, the words "Gehan or mortgage or hypothecation held or mortgages, charges or hypothecation partly held and partly to be acquired"; for the word "mortgages" occurring for lie second time, the words "Gehan or mortgages or hypothecation"; and for the words "Primary Land Development Banks", the words "Primary Agriculture and Rural Development Banks" shall be substituted;
(d) the existing section so amended shall be re-numbered as sub-section (1) and thereafter the following new sub-section (2) shall be inserted, namely:-
"(2) Notwithstanding anything contained in sub-section (1), in respect of loans guaranteed by the Government and guaranteed to any person or to any body of persons, whether incorporated or not and whether or not established by or under any law for the time being in force if such a body is approved by the Government, the Board may, with the prior permission of the trustees, issue debentures, on the strength of such Government guarantee and without the security of Gehan or mortgages or hypothecation and other assets, of one or more denominations, for such periods as it may deem expedient and subject to such conditions as the Government may think fit to impose".
10. Amendment of section 11.- In section 11 of the principal Act wherever the word "mortgages" occurs, the words "Gehan, mortgages or hypothecation" and for the words "Primary Land Development Banks" occurring in item (ii) of clause (a), the words "Primary Agriculture and Rural Development Banks" shall be substituted.
11. Insertion of new section 11-A.- After section 11 of the principal Act, the following new section 11-A shall be inserted, namely:-
"11-A. Power to borrow money by issue of bonds or by way of loans,-
(1) Notwithstanding anything contained in the Himachal Pradesh Co-operative Societies Act, 1968 (3 of 1969) the Board may, with the prior approval of the Government and subject to the regulations made under this Act, borrow money by issue of bonds:
Provided that the issue of the bonds shall be in conformity with such directions or instructions as may be issued by the Reserve Bank of India or the National Bank for Agriculture and Rural Development from time to time.
(2) The bonds shall be in the form of promissory notes and shall be repayable on the expiry of such period or periods from the date of issue thereof as may be approved by the Reserve Bank of India or the National Bank for Agriculture and Rural Development:
Provided that the Board may repay the amount due under the bonds at any time before the period or period so fixed after issuing a notice in such manner as the Board may direct in that behalf to the holders of the bonds.
(3) Notwithstanding anything, contained in the Himchal Pradesh Co-operative Societies Act, 1968, (3 of 1969) the Board may borrow money by way of loans from the Government, the National Bank for Agriculture and Rural Development, the Reserve Bank of India or such other financial institutions as may be approved by the trustee".
12. Substitution of section 12.- For section 12 of the principal Act, the following section 12 along with its heading, shall be substituted, namely:-
"12. Charge on movable or immovable property of the borrower for amounts borrowed.-
(1) Notwithstanding anything contained in the Himachal Pradesh Co-operative Societies Act, 1968 (3 of 1969) or in any other law for the time being in force, any person owning any land or having interest in any land a tenant or occupier or owning any other movable or immovable property who applies to the Agriculture and Rural Development Bank for a loan, shall make a declaration in the prescribed form creating a Gehan or mortagage or hypothecation in favour of the Agriculture and Rural Development Bank on the land or other movable or immovable property or interest therein or any movable property or movable assets to be acquired with the loan, specified in the declaration, for the repayment of the loan or advance granted or to be granted to him by the Agriculture and Rural Development Bank, together with interest on such amount of the loan or advance and expressly reserving in favour of the Agriculture and Rural Development Bank a right of sale without intervention of court, in case of default.
(2) A declaration under sub-section (1) may be varied or cancelled at any time by the member with the prior approval of the Agriculture and Rural Development Bank.
(3) No land or other movable or immovable property or any movable property or movable assets to be acquired with the loan or advance in respect of which a declaration under sub-section (1) has been made and no part thereof or of the interest in such and or movable or immovable property shall, without the consent of the Agriculture and Rural Development Bank, be sold or otherwise transferred until the entire amount of the loan or advance taken by the member from the Agriculture and Rural Development Bank, together with interest thereon, has been paid to the bank, and any transaction made in contravention of this sub-section shall be null and viod.
(4) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908) or any other law for the time being in force, it shall not be-necessary to register any Gehan or mortgage or hypothecation created or executed in favour of the Agriculture and Rural Development Bank; provided the Agriculture and Rural Development Bank sends, within such time and in such manner as may be prescribed, a copy of the declaration of instrument whereby the Gehan or mortgage or hypothecation has been created or executed for the purpose of securing repayment of the loan, to the registering officer within the local limits of whose jurisdiction the whole or any part of the property to which the Gehan or mortgage or hypothecation relates is situated.
(5) On receipt of the copy of the declaration or instrument sent under sub-section (4), the registering officer shall file a copy or copies thereof, as the case may be, in Book No. 1, referred to in section 51 of the Registration Act, 1908 (16 of 1908) and thereupon, such Gehan or mortgage or hypothecation shall be deemed to create an interest in the property to which the declaration or instrument relates and shall constitute notice to any one dealing with the said property.
(6) Any person who makes any false statement in a declaration under sub-section (1) shall be punishable with imprisonment for a term which may extend to six months, or with Tine which may extend to two thousand rupees, or with both."
13. Insertion of section 12-A.- Af ter section 12 of the principal Act, so amended, the following new section 12-A shall be inserted, namely:-
"12-A. Applicant for loan from the Agriculture and Rural Development Bank to furnish declaration.-
(1) Every person who applies for a loan from the Agriculture and Rural Development Bank shall make a declaration in the prescribed form before an officer specified by the Registrar in this behalf that the movable or immovable property on which the Gehan or mortgage or hypothecation is created as security for the loan is free from encumbrances, that he is in actual possession thereof and that he has the right to create the Gehan or mortgage or hypothecation, as the case may be, thereon in favour of the Agriculture and Rural Development Bank.
(2) Notwithstanding anything contained in any law for the time being in force, where a declaration under sub-section (1) in respect of any movable or immovable property is false or defective, the Agriculture and Rural Development Bank shall, subject to the provisions of section 38, have a first charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the Gehan created or mortgage or hypothecation executed by the applicant as security for the loan granted to him by the Agriculture and Rural Development Bank.
(3) Any person, who makes a false declaration under sub-section (1) or makes any statement which is false in any such declaration shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.
(4) The amount of loan that may be sanctioned on the basis of a declaration made under sub-section (1) shall be subject to such limit as may be prescribed."
14. Amendment of section 13.- In section 13 of the principal Act, after the figure "9" the words, figure and signs "or bonds issued or loans raised under section 11-A, to such maximum amount as may be fixed by the Government from time to time," shall be inserted.
15. Insertion of sections 14-B and 14-C.- Before section 15 in Chapter-V of the principal Act, the following new sections along with their headings shall be inserted, namely:-
"14-A. Security for loans.- (1) Subject to the provisions of this Act, the Agriculture and Rural Development Bank and the Primary Agriculture and Rural Development Bank may advance loans to individuals and institutions on the security of lands and other fixed assets or of assets acquired by the loans borrowed which have been hypothecated to the Agriculture and Rural Development Bank, as or the Primary Agriculture Rural Development Bank as the case may be, on the basis of principles of valuation approved by the Registrar:
Provided that the Agriculture and Rural Development Bank and the Primary Agriculture and Rural Development Bank may, for such purposes and for such periods as may be specified by the Government by special or general order, advance loans without such security of land but on the specific guarantee of the Government for the repayment of the principal and payment of interest thereon:
Provided further that the Agriculture and Rural Development Bank and the Primary Agriculture and Rural Development Bank may, with the previous approval of the Registrar and subject to such restrictions and limitations as may be prescribed, advance loans for such purposes and for such periods as may be determined by the Board.
(2) Notwithstanding anything contained in any other law for the time being in force, the Agriculture and Rural Development Bank or a Primary Agriculture and Rural Development Bank may, under any land development scheme prepared and approved under the provisions of the Himachal Pradesh Land Development Act, 1973 (14 of 1973) or under this Act, grant or advance loans to any person or a group of persons with or without security of land for carrying, out the work specified in the scheme, subject to such terms and conditions as are agreed upon between the Government and the Agriculture and Rural Development Bank or the Primary Agriculture and Rural Development Bank as the case may be.
(3) All loans and advances granted and all amounts payable to, or recoverable by, the Agriculture and Rural Development Bank or the primary Agriculture and Rural Development Bank shall, in case of default of payment, in addition to other remedies available to the Banks, be recoverable in the same manner as if they are arrears of public revenue due on land.
(4) All loans and advances granted by the Agriculture and Rural Development Bank under this section shall be granted inconformity with the directions or instructions as may be issued by the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981. (64 of 1981.)
14-B. Money borrowed for development of land.- Where the Agriculture and Rural Development Bank has granted a loan for improvement of any land situated in any area or areas covered by any specific programme of agricultural development, to a person appearing to the Agriculture and Rural Development Bank to have title to the said land or to be in lawful possession thereof, and the money has been either in whole or in part utililised for such improvement, any person acquiring title to such land on ground of superior title or on any other ground shall be liable to repay to the Agriculture and Rural Development Bank so much of the loan as has been utilised for the improvement of the land together with interest thereon.
14-C. Loans to persons having restricted rights of transfer.- (1) Notwithstanding anything contained in any law, custom or usage, where the Agriculture and Rural Development Bank makes a loan or an advance to a member belonging to a Scheduled Caste or Scheduled Tribe or to any other person having restricted rights of alienation over immovable property, it shall be competent to such member or person to create a Gahan or mortgage or hypothecation on such property in favour of such. Agriculture and Rural Development Bank as security for such loan.
(2) The Agriculture and Rural Development Bank shall, in the event of default by the member or person and without prejudice to any-other remedy available to it either under a law or contract or otherwise, be entitled to take possession of such property and lease the same to any person belonging to the same caste or tribe as the member belongs in case the defaulter is a member of a Scheduled Caste or Scheduled Tribe and in any other case to any person and appropriate the net receipts from the lease in repayment of the moneys due to it; and the member or person shall not be entitled to recover possession of such property until the amount due to the Agriculture and Rural Development Bank has been repaid in full."
16. Amendment of section 17.- In section 17 of the principal Act,-
(i) for the words "Land Development Bank" wherever these occur, the words "Agriculture and Rural Development Bank" shall be substituted;
(ii) for the word "mortgage" wherever it occurs, the words "Gehan created or mortgage or hypotheeation executed" shall be substituted;
(iii) for the word "mortgagee", the words "Agriculture and Rural Development Bank" shall be substituted;
(iv) existing section so amended shall be re-numbered as sub-section (1) and thereafter following sub-section (2) shall be inserted, namely:-
"(2) Notwithstanding anything contained in any law for the time being in force, a Gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank or a Primary Agriculture and Rural Development Bank shall take precedence over any attachment or equitable mortgage over the properties where, after publication of a notice in the prescribed form, the claim or interest under such attachment or equitable mortgage has not been notified to such bank within the time, prescribed in the said notice."
17. Omission of section 18.- Section 18 of the principal Act shall be omitted.
18. Amendment of section 19.- In section 19 of the principal Act,-
(i) for the words "Land Development Bank" wherever these occur, the words "Agriculture and Rural Development Bank" shall be substituted;
(ii) the word "mortgage" shall be substituted with the words "Ghan, mortgage or hypothecation"; and
(iii) the word "mortgaged" shall be substituted with the word "involved".
19. Substitution of section 21.- For section 21 of the principal Act the following section 21 shall be substituted, namely:-
"21. Power of the Agriculture and Rural Development Bank to receive money and grant valid discharge.- Notwithstanding that a Gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank has been transferred, or is deemed under the provisions of section 38, to have been transferred, to the Agriculture and Rural Development Bank-
(a) all moneys due under the Gehan or mortgage or hypothecation shall, in the absence of any specific direction, to the contrary issued by the Board or the trustees and communicated to the person who created the Gehan or executed the mortgage or hypothecation, be payable to the Agriculture and Rural Development Bank and such payment shall be as valid as if the Gehan or mortgage or hypothecation had not been so transferred; and
(b) the Agriculture and Rural Development Bank shall, in the absence of any specific direction to the contrary issued by the Board or the trustees and communicated to the Agriculture and Rural Development Bank be entitled to sue on the Gehan or mortgage or hypothecation or take any other proceeding for the recovery of the moneys due under the Gehan or mortgage or hypothecation."
20. Substitution of section 22.- For section 22 of the principal Act, the following section along with its heading, shall be substituted, namely:-
"22. Powers of the Agriculture and Rural Development Bank in case security property is destroyed or becomes insufficient.- Where any property which is subject to a Gehan or mortgage or hypothecation id favour of the Agriculture and Rural Development Bank is wholly or partially destroyed or for any reason the security is rendered insufficient and the person who created the Gehan or executed the mortgage or hypothecation having been given a reasonable opportunity by the Borad or the Committee of the Agriculture and Rural Development Bank, as the case maybe, to provide further security enough to render the whole security sufficient, or to repay such portion of loan as may be determined by the Bank, has failed to provide such security, or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once; and the Board or the Committee, as the case may be, shall be entitled to take action against the person who created the Gehan or executed the mortgage or hypothecation under this Act.
Explanation.-Security shall be deemed insufficient within the meaning of this section, unless the value of the property (including improvements made thereon) exceeds the amount for the time being due to the Agriculture and Rural Development Bank by such proportion as may be specified in the regulations made by the Board."
21. Amendment of section 23.- In sub-section (1) of section 23 of the principal Act,-
(a) for the word "mortgage", the words "Gehan created or mortgage or hypothecation"; and
(d) for the words "produce of the mortgaged land including the standing crops thereon; provided that such crops belong to the mortgagor or mortgagors, as the case may be", the words "produce of the land to which the Gehan or the mortgage or hypothecation relates, including the standing crops thereon and other movable property of the defaulter"; shall be substituted.
22. Substitution of section 26.- For section 26 of the principal Act, the following section shall be substituted, namely:-
"26 (1) Notwithstanding anything contained in the Transfer of property Act, 1882 (4 of 1882) or any other law for the time being in force, where a Gehan or mortgage or hypothecation has been created or executed in movable or immovable property in accordance with the provisions of sub-section (I) of section 12 in favour of the Agriculture and Rural Development Bank or a Primary Agriculture and Rural Development Bank, the Board or the Committee of such bank or any person-authorised by the Board or such Committee shall, in case of default in the payment of sums due to the bank, have power, in addition to any other remedy available to the Primary Agriculture and Rural Development Bank to bring to sale the property to which Gehan or mortgage or hypothecation relates without intervention of the court.
(2) No such power shall be exercised, unless and until-
(a) the Board or the Committee has previously authorised such sale in the exercise of the power conferred on it by sub-section (1), after hearing and deciding the objections, if any, of the person who created the Gehan or executed the mortgage or hypothecation, or any other person having any interest in the security property;
(b) notice in writing requiring payment of sums due to the Agriculture and Rural Development Bank or any part thereof, has been served upon-
(i) the person creating or executing the Gehan or mortgage or hypothecation;
(ii) any person who has any interest or charge upon the property to which the Gehan or mortgage or hypothecation relates or any other right to redeem the same;
(iii) any surety for the payment of the sums due to the Agriculture and Rural Development Bank or any part thereof; and
(iv) any creditor of the person creating or executing the Gehan or mortgage, who has in a suit for the administration of his estate, obtained a decree for sale of the property to which gehan or mortgage or hypothecation relates;
(c) there has been default in payment of such sums due to the Agriculture and Rural Development Bank for a period of six months after service of the notice referred to in clause (b):
Provided that the objection to give such notice to the persons mentioned in sub-clauses (ii) and (iv) shall be confined to cases where the Board or the Committee has notice of such claims; and
(d) the Registrar, in case where the amount claimed by the State Bank is disputed, has certified that the amount claimed or lesser amount is due from the person creating or executing the Gehan mortgage or hypothecation."
23. Amendment of sections 27 and 28.- In sections 27 and 28 of the principal Act-
(a) for the words "mortgaged property" wherever these occur, the words "the property to which the Gehan or mortgage or hypothecation relates"; and
(b) for the word "mortgagor", the words "the, person creating or executing the Gehan, mortgage or hypothecation";
shall be substituted.
24. Amendment of section 29.- In section 29 of the principal Act-
(a) for the word "mortgage", wherever it occurs, the words "Gehan or mortgage or hypothecation" shall be substituted and
(b) the word "mortgaged" wherever occurring before the word "property" shall be omitted.
25. Amendment of section 30.- The word "mortgaged" occurring before the word "property" in section 30 of the principal Act shall be omitted.
26. Amendment of section 31.- In section 13 of the principal Act-
(a) the word "mortgaged" occurring before the word "property" shall be omitted;
(b) for the word "mortgage", the words "gehan mortgage or hypothecation" shall be substituted; and
(c) for the word "mortgagor" wherever it occurs, the words "the person creating the Gehan or executing the mortgage or hypothecation" shall be substituted.
27. Amendment of section 32.- In the heading and body of section 32 of the principal Act the word "mortgaged" wherever it occurs, shall be omitted and for the words "Land Development Bank" wherever these occur, the words "Agriculture and Rural Development Bank" shall be substituted.
28. Amendment of section 33.- In section 33 of the principal Act,-
(a) for the words "mortgages executed in favour of the Land Development flanks", the words "Gehan, mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank" shall be substituted;
(b) for the word "mortgagor", the words and sign "person who created the Gehan or executed the mortgage or hypothecation, as the case may be" shall be substituted; and
(c) the word "mortgaged" shall be omitted.
29. Amendment of section 36.- In section 36 of the principal Act, for the words "Land Development Bank" wherever these occur, the words "Agriculture and Rural Development Bank"; and for the word "mortgagor", words "person who created the Gehan or executed the mortgage or hypothecation" shall be substituted.
30. Amendment of section 38.- In section 38 of the principal Act-
(a) for the words "Primary Land Development Bank" occurring in its heading and in its body, the words "the Primary Agriculture and Rural Development Bank" shall be substituted;
(b) for the word "mortgages" occurring in its heading, the words "Gehan, mortgages or hypothecation" shall be substituted;
(c) for the words "the mortgages executed", the words "A Gehan created or mortgage or hypothecation executed or deemed to have been created or executed" shall be substituted;
(d) after the words "all other assets transferred", the words and sign or deemed to have been transferred," shall be substituted; and
(e) in between the words "such" and "execution", the word and sign "creation," shall be inserted.
31. Amendment of section 39.- In section 39 of the principal Act,-
(a) in the heading, the word "mortgaged" shall be omitted;
(b) in sub-section (1), for the word, figures and sign "section 23," the words and figures "section 22 or section 23", shall be substituted; and
(c) for the words "Primary Land Development Bank" and "Land Development Bank" wherever these occur in it, the words "Primary Agriculture and Rural Development Bank" and "Agriculture and Rural Development Bank" shall be substituted respectively.
32. Substitution of section 40.- For section 40 of the principal Act, the following section shall be substituted, namely:-
"40. Gehan or mortgage or hypothecation not to be questioned in insolvency proceedings.- Notwithstanding anything contained in the Insolvency Act, 1955 (2 of 1956), a Gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank shall not be called in question on the ground that it was not created or executed in good faith or for valuable consideration or on the ground that it was created or executed in order to give such bank a preferance over the other creditors of the person who created the Gehan or executed the mortgage or hypothecation."
33. Substitution of section 41.- For section 41 of the principal Act, the following section shall be substituted, namely:-
"41. Priority of Gehan, mortgage and hypothecation.- Any amount payable under a Gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank shall have priority over any claim of the Government arising from a loan under the Land Improvement Loans Act, 1883 (19 of 1883) or any other law for the time being in force in the State, granted after the creation of the Gehan or the execution of the mortgage or hypothecation".
34. Amendment of section 42.- In section 42 of the principal Act.-
(a) for the words "Land Development Bank" wherever these occur in its heading and its body, the words "Agriculture and Rural Development Bank" shall be substituted;
(b) for the word "mortgage", the words "Gehan is created or mortgage or hypothecation", and for the word "mortgagor", the words "person who created the Gehan or executed the mortgage or hypothecation" shall be substituted; and
(c) after the words "specified in the notice" but before the sign ";" occurring for the second time, the sign and the words "except in cases where such person proves to the satisfaction of the Board or the Committee of the Agriculture and Rural Development Bank, as the case may be, that the failure to receive notice or payment was due to causes beyond his control" shall be inserted.
35. Amendment of section 45.- In section 45 of the principal Act,-
(a) for the words "Land Development Bank" wherever these occur, the words "Agriculture and Rural Development Bank" shall be substituted;
(b) for the words "mortgage" or "mortgages" wherever these occur in the heading and the body of the section, the words "Gehan created or mortgage or hypothecation" shall be substituted; and
(c) for the words "was executed", the words "was created or executed" shall be substituted.
36. Insertion of section 49-A.- After section 49 of the principal Act, the following section 49-A shall be inserted, namely:-
"49-A. Employees etc. to be public servants.- Any employee of the Agriculture and Rural Development Bank engaged in the recovery of loans under the provisions of this Act or the rules or any person appointed as liquidator or arbitrator shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860)".
37. Amendment of section 50.- In section 50 of the principal Act,-
(i) for the words "Primary Land Development Bank" and "Land Development Bank" wherever these occur, the words "Primary Agriculture and Rural Development Bank" and "Agriculture and Rural Development Bank" shall respectively be substituted;
(ii) in clause (c), for the words, "on mortgages transferred to the. State Bank" occurring at the end, the words "on Gehan or mortgage or hypothecation transferred, or deemed under the provisions of section 38 to have been transferred, the State Bank" shall be substituted;
(iii) for clause (e), the following clause shall be substituted, namely:-
"(e) prescribing the proportions by which the property, to which Gehan, mortgage or hypothecation relates, should exceed the amount for the time being due on the Gehan or mortgage or hypothecation for security to be sufficient within the meaning of Explanation under section 22"; and
(iv) in clause (g), for the word "mortgagor", the words "persons creating or executing a Gehan or mortgage or hypothecation" shall be substituted.
38. Amendment of section 55.- In subjection (2) of section 55 of the principal Act,-
(a) for the words "Primary Land Development Banks" occurring in clause (xii), the words "Primary Agriculture and Rural Development Banks" and for the sign "." occurring at the end the sign ";" shall be substituted and thereafter the following clauses (xiii), (xiv) and (xv) shall be added, namely:-
"(xiii) the form of declaration under section 12;
(xiv) the form of notice under sub-section (2) of section 17; and
(xv) any other matter required or allowed by this Act to be prescribed."