DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. The Tamil Nadu Co-Operative Land Development Banks Act, 1934
Act 10 of 1934
Keyword(s):
State Land Development Bank, Primary Land Development Bank, Trustee, Small Farmer
Amendment appended: 35 of 1979
1
I934 : T.N, Act X] &operative LMd Development Banks
TH& W I L NADV CGOPERATIVE LAND
DEVELOPMENT BANKS ACT, 1934,
TABLE OF CONTENTS.
PREAMBLE. (Omitted.) CHAPTER I-PRELIMINARY.
3. Definitions.
CHAPTER I-A-LAND DEVELOPMENT BANKS,
BOARD AND COMMITTEE.
3-A. State and primary land development banks. 3-B. Election of members oi Board. 3-c. Appointment of Executive Officer and
3-D. Purposes for which loan may be granted. 3-E. Agency of other Co-operative Banks. 3-F. Power to make rules.
CHAPTER II-DEBENTURES.
4. Issue of debentures by the Board.
6. Guarantee by State Governmsnt of princcpal of, and interest on, debsntures issued under section 4.
7. Guarantee by State Government of principal of, and interest on, debentures issued before commence-
mant of the Act.
8. Power of Board to make regulations.
2
934: T.N. Act X
- - CHAPTER' III+D~snumr S , OF PRODUCE S E ~ O N S .
9. Distraint when to be made.
10. Distraint how to be effected. 1 1. Sale of property distrained.
12. Power of State Government to make rules, CHAPI'ER JV-POWER OF SALE.
13. Power cf sale R hcn to be exercised.
c t 14. 4pplication fcr sale anti manner of sale.
15. Applicati~n to set : side sale on &posit and confirmation of sale in deL3ult or on dismissal of such application.
16. Distribution of the proceeds of sale.
17. Certificate to purchnscr.
18. Delivery of propei.ty Lo p u ~ cl1'~ser.
19. Right of primary land d1:vcl ,prnent b.mk or of the Statc Land Dcvelopmenl Bank to purchase the mortga.ged property at sale.
20. Appointment of receiver and ',is powers,
21. Tillc of purchaser not t o oc i:~ipeached on the ground of irregularity, ctc.
22. Appointment of sale offiw-.
22-A. Recovery of sums clue ro primary laf~d development bank or Sta tc Land Dcvclop~nenr Bunk.
23. Power of State Government to make rulcs,
CHAPTER V - - J V ~ ~ ~ ~ ~ ~ ~ N F ~ U S . 23-A, Mortgages execpted in ,favour of primary. ' Y la114 daydopmwt bnnk, etc., to shnd vested j n State
I;srsct. Davolvpmunt:B~nk, , a i . .. ?it . . ..' . . . . '. ','.','...', I' ".! . L. . .'
r .&' *:'+** ,';w .*
3
1934 : T.N. Act XJ Co-operadive Land 421 Development .Bmks
SECIIONS,
24. Power of primary land development b a a in case the mortgaged property is wholly or partially destroyed or the security is rendered insufficient.
25. Pover of Board or of Trustee to direct distraint and sale of produce and the sale of mortgaged property, etc.
26. Mortgagor's power to lease.
27. Mortgage not to be questioned on insolvency of mortgagor.
28. Priority of mortgage over other claims.
2S-A. Verification o f cncunibranccs.
29. Right of primary land tlevclopmcnr hank to pay prior debts of mortgagor.
2%~. Power 10 sllnlinon witnesses ?n(f rcqu i s i t ion 1 //I documents. 1 ;
30. Registration of documents executed on behalf of a primary land development hank oi- of the State Land De'velnpment Bank.
31. Powcr nl' pri~nary land dcvcl~)pme111 bank lo receilvc moneys and grant valid tlischarges notwith- standing nssign:nent of mostgagc tlezd~ to L hc Sla tc
Lm~d Dcvclopmei~t 'nank.
33. Special provi4on R)r mortgage, cxccutcd by
111anngcl.s of jo i l t t Hindu fitlniliec, knn~sv:ins or Maru- makkattaynm tarwatlc or tnvnzl~is 0;. of Nalnbudri illoms, etc.
32-A. (Omi//~>(!.)
32-0. Proof of documents or cntrics in documents, ,'I
33. Cbaptcrs 111 and IV to apply to loans crdv?n:ed by primary land development ranks from funds not bonowed from th,e State Land Development Bank.
34. Service of notices under the Act.
35. Sections 102, 103 and 104 of the Transfer ot Property Act, 1882, to agply to such notices.
4
:7- -y*w
a s . 422 (=aspdratiue la934 : fa. Act rf Development Banks
S3!crlo1s.
36. Officers of primary land development bariks and of the State L ~ n d Development Bank and sale officers not to bid at sales.
1 36-A. iresting of assets and liabilities.
37. Delegation of certain powers by Board.
38. Power of Board to make regulations.
38-A. Publication of rules, commencement of rules and placing them before the Legislature.
38-B. Construction of references to " Central
Mortgage Bank " and "mortgage bank."
38-c. Act to override other laws.
5
.--..< .... ' * . . . ..... . . * A * * A .... "*..*.. . .A. <,&,.*..., A.4...&.+ +"< & a L - ' J . - P , P * W . . a 4 8 & . + ~ ~ U
'FAMIL NADU] Am NO. X OF 1934s. [THE ~[TAWL NADU CO-OPERATIVE LAND DEVELOP.
MENT BANES ACT], 1934.1
(Received the assent of the Governor on the 17th ,
May 1934, and that of the Governor-General on the 8th Jdy 1934; the assent of the Governor-General was f is t published in the Fort St. George Gazette of the 31st July 1934.) An Act to fadlitate the yorking of Co-operative '[Land Development Banks] in the S[State o f Tamil Nadu].
1 These words were substituted for the word " Madras" by the Tamil Nadu Adaptation of Laws Order, 1969, as amended by the Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969, which came into force on the 14th January 1969.
1 For Statement of Objects and Reasons, see Fort St. George Gazette, dated the 7th February 1933--Part IV, pages 20-22. This Act was extended to the merged State of Pudukkottai by section 3 of, and the First Schedule to, the Tamil Nadu Merged
. States (Laws) Act, 1949 (Tamil Nadu Act XXXV of 1949). This Act was extended to the .Kany.&umari district and the Shencottah taluk of the Tlrunelvel~ d~strict by section 3 of, and the Schedule to, the Tamil Nadu (Transferred Territory) Extension of ~ a w s Act, 1957 (Tmjl Nadu Acr XXII of 1957), repealing the wrrts- pending law In force In that territory.
So much of this Act as was in force on the date of the commence mant of the Tamil Nadu (Added Temtories) Extension of Laws Act,
1962 (Tamil Nadu Act 14 of 1962) in the State of Madras except in the added territories was extended to the added terntones by sec-
tion 3 of, and the First Schedule to, the latter Act.
r These words were substituted for t!e words "Tamil Nadu Co-operative Land Mortgage Banks Act by section 2 (3) of the Tamil Nadu Co-operative Land Mortgage Banks (Amendmbnt) Act, 1969 (Tamil Nadu Act 14 of 1969).
4 Theso words were substituted for the words '* Land Mortgage Banks " by section 2 (I), Ibid.
r This expression was .substituted for the expression "
of Madras9* by tho Tam11 Nad* Adaptation of Laws Or=
which was dccmod to have come mto force on the 14th JanuarylP69.
* The preamble was omitted b section 2 (2) of tho T a d Nadp
Cwpera t~ve Land Mortgage Bad (Amendment) Act, 1969 (J'd Nadu Act 14 of 1969).
I
6
w+w 2
C
424 co-operative Land [la : T.N. Act X Development Banks
CHAPTER I.
Pre liniinary . Short title. 1. This Act may be called the '[Tamil Nadu Co-
operative Land Development Banks Act], 1934. Extent. 2. It extends to the whole of the l[State of Tamil NaduJ.
Definitions. 3. Tn this Act, unless thcrc is anything repugnant in the subject or c~ntcst-
((1) 'Board' means the Boarcl of Directors of the s(Srate Land Dcvclopmcnt Bank);
' [ (b ) 'Stxtc Lanci Dcvelc,pmcnt Bank' means the .6Tamli Nadu Co-opcmr i~ l: State Ln~ld Development Bank, Lilnlted";]
(c) 'commitlec' means in relation to the L[r:inin~ ! In~~cl dc\clopmcnt bank], the Board of L)lrcci(>~.\ o , Boarcl of Miinag~rncnt or [he pnchayat or the commit lcc: of nl:rl~ngenicnt or thc governing body lo \.+?-,om 111c ~nanag(:nicll( of its affairc I S entrusted ; __. - - - _ --
I Thc wo,i(s'T,\ri~~l Niulu' w1.e suhstt t~~tcdfor Ilic word 'Madras' , I I the sIis)l t t ~ t ' e by thc l"t1111l NCldu Adni~tdtlon of Laws Order, 1069, nmcndcd hy the T.irnll Nddu Adaptallon of Law3 (Second \rncndn1cnl) Occlcr, 1969,
Th15 c\ple\slon was sr~b\titiltcd for the cxp~ession " Presidency
of iMadr,r\" by l l ~ e Tam11 N:rdtr AGaptatron of Laws Order, 1970, which w,i\ tlcc~ncd to have come Into force on the 14th January
1969.
4 Tills exprcsstvn was ~ u h s t ~ t i ~ t e d for the expression " Central Mollgage H.rnL" by scclto114 of the Tamil Nadu CO-operative Land Mortgage l3.1nks (Amendment) Act, 1969 (Tarnil Nadu Act 14 of
1969).
6 This cl.u~,c was substituted for the original clause (b) by section
4 ( I ) , ibid.
6 T ~ I S cxprcssion was substituted for the axpressio~ '* mortgage, 2 bank " by section 4, ibid.
7
6 r ( J f ) small farmcr ' meanc a person o~ ning or c~lltivating: onc hcctnrc of Innti o r Ice\ ;I
(g) ' T ~ ~ r s t e c ' mcnnc thc T1.ustcc 1.cfci rctl to in scct ion 5.
I
- - --
1 Thi$ clause was substit~ltcd for the original el:~use(c/) by scctlon
3(2) of thcTarnil Nadu Co-opcr,rtiveLand Mortgage Ranks (Anlcntl- ment) Act, 1969 (Tan111 Natlu Act 13 of 1969).I ZThesc words were substitutcd for the word " h4adra.i" by the Tamil Nadu Adaptation of Laws Order, 1969, as amended by thc Tamil Nndu Atlaptation of L:tws (Second Amcndmcnt) Ortlcr, 1909.
a The words " Provincial,3overnment " were substitutcd for the words " Local Gzvernment by the Adaptation Order of 1937 and the word State was substituted for "Provincial " by the Adapta-I1 tion Order of 1950.
4This clause was substituted for the original clause by scction
v , , L- t b
3(3) of the Tamil Nadu Co-operative Land Mortgage Banks (Amend- ment)Act, 1969(Tmll Nadu Act 14of 1969).
8 Thb clause was inserted by section 3(4), ibid.
\
1
I
8
~ , ~ ~ * ~ ~ - b " * ~ - . **i.-**
& q<,T --7 'y4 T* f , d* 12 :,.a''
a d [19& : TA. Act x
'[CHAPTER I-A, Land Development Bmb, Board and Connnittee.
3-A. (1) There shall be a State Land Development
S@w *d Bank for the State of Tamil Nadu and as many primary Pri-9 laad land development banks as may be deemed necessary.
drvel0Pnut banLs. (2) On and from the date of the commencement of the Tamil Nadu Co-operative Land Mortgage
Banks (Amendment) Act, 1969 (hereinafter referred to as the Amendment Act), the existing Madras Co- operative Central Land Mortgage Bank Limited shall be deemed to be, and shall be, the State Land Develop- ment Bank.
(3) The Board shall consist of such number of members to be elected and nominated, as may be prescribed :
Provided that representation in the Board shall be given to the weaker sections of society such as small farmers, Scheduled Castes and Scheduled Tribes:
Provided also that the number of nominated members shall not exceed one-fifth of the total number of members of the Board :
Provided further that the Board constituted for the first time after the date of commencement of the Amendment Act shall include the 2[existing members of the Board of Directors of] the Madras Co-operative Central Land Mortgage Bank until the
I
expiry of their existing term of office.
(4) On and from the date of rhe commencement of the Amendment Act, every primary land mortgage bank in existence shall be deemed to be, and shall
be, a primary land development bank and a member of the State Land Development Bank.
1 Chapter 1-A war lnaerted by section 5 of the Tamil Nadu Co- optative Land Mortgage Banks (Amendment) Act, 1969 (Tamil adu Act 14 of 1969).
9
1934 : f'd. Act XI 60-0 erative ~ r m d 45j P Deve opment B&
(5) Every new primary land development bank registered after the date of the commencement of the Amendment Act shall, on such registration, be deemed to be, and shall be, a member of the State Land Development Bank :
Provided that any primary land development bank may, with the approval of the Registrar, be removed from membership of the State Land Develop- ment Bank by a resolution of the Board and any application for obtaining such approval shall be made within two months from the date of registra- tion of the primary land development bank. 3-B.'[(l)]The election of the members of the Board Election of i
in respect of each district shall be held at a meeting :z;2rs0f
of the 2[presidents] of the primary land development banks in that aistrict, at such place and at such time as may be fixed by the State Government or any officer authorised oy the State Government and shallI I
be conducted in the manner prescribed.I
3[(2) The election of a person as a member of the Board shall not be called in question on the ground of the existence of any vacancy for whatever reason among thc presidentsof theprimary landdevc- lopment banks.]
3-C. (I) Tlze State Goverrunent may appoint an Appoint.
execbtive officer for the State Land Development Bank merit o f
or a manager for any primary land development bank ~ ~ ~ ~ ' " ' for the purpose of safeguarding the interest of the and
uhareholdcrs or members, for ensuring the proper Mann:~, . ISoction 3-8 was renumbered as sub-section (1) of that section by section 3 of the Tamil Nadu CO-operative Land Development Banks (Amendment) Act, 1970 (Tarn11 Nadu Act 4 of 1970). 'This word was substituted for the word "delegates '' by section 3(i), ibid.
8 This sub-section was added by section 3(ii), ibjd.
10
I ' pr'.- T" Wi' . ; ' . . ' ,% - $
Ceoperative tand ~1934: T.N. Act X Development Banks
a . utilisation of the amounts guaranteed by the State Government, for reducing the overdues of the bank,
i
. F
for impro~ ing the efficiency of the administration of , . the oank, or f'or such other purpose as the State
I Governmen: may, by general or'special order, specify:
Provided that such pober shall be exercised afta consulring the bank concer~led.
(2) The executive officer and the manager shall belong to such cadrc, class or category and shall hold F U C ~ qllalifications and exercise sucll powers and perform such fi~nctions as inay be prescribeci.
Purposes
for which loan may be granted.
Agency of other Co-operative Banks.
Power to
mxke rules
3-D. Thc loans uhich nlay beganted by a prilnar~l land devc1op:ncnt bank i.r the State Lana Dcvelopnlzot Bank sha 11 ra!a te to such purposes per.t?ininz to develop- ment of land as may bc prescribed.
3-E. Th: State Lanil Development Bank or any pri mary la11L1 clevelop~n~ni bank nlay f~ulction ac rhe ngcqt ol'nn! GO-opcrarh c hank st~bjcct lo sxch condi- tions as 111~. Rcgictr-ar ma). hy gcne~xl 01. special or{!ci., specify.
3-F. Tllc S h t c Go\c!-ri~iicn~ mny rnaic jules no t i~lcn~lcis\cn! ,.vith this ('kaptcr-
(i) fo; rill: n1;rnhcr of 1ncm13e1.s to bc clcctcd ant1 rlo~ninatctl 1 0 th:: Roaid ant1 their term of oflcc ;
(ii) Tor rhc lnanlizr o f clection and nomination of rn,:lnhcru to thc Ronr'd ant1 their u.mo~al ;
(iii) <,,I- the election<) office-bearers to the Board; -
(iv) Tor the qualifications, powcr:: and functions
oi' the exect,tivc officcr and manager ;
(v) for the purposes tor wnich loans may be
sanctioned.]
i
11
1934 : T.N. Act X] Co-operative Land 423 Development Banks
CHAPTER '11. j
t Debcntutrs.
4. (1) ((I) With thc p .evious sanction of the~ssue o f
Trustee, tbe Board inay issue debenturesofoneor rnore debentures by the denominations for such peJods nr it lnay deem ex- &,rd. psdier~t on the security of the mortgages and other assets tran3feired '[or deemed under thc provisions of aectio~i 23-A to have been transferred] by the a[primary land develop.nent hanks] to the 3[State Land Develop- ment Bank] and o: ih.: atha; prop2rtie-s ot such Bank.
(h) Such dsbsntmes may contain a term fixing a p!-iod n>t excseding ten years from the date of issue durlng which they sllall be irredeemable, or reserving to the Board the right to call inat any time any of the debsntures in advance- of the date fixed for redemption after giving to the debenture-holder concernca not less than three months' notice in writing.
(2) The total amount due on the debcn- lurcs ; w e d by the Board (~ncluding thaw ~ S F L L C ~ 13:foi.e the comlnencemcnt of ttlis Act)
and outstanding at any time shall not exceed lrthe aggregate of (a ) the alilounts due on the inort:ages, and the vnlueof the otllerasset~, transfcrrea or decmed under the provisions of section 23-A to hive bccn transrerred by the "l~rimary land develop- ment oanks] to tre s (State Land Development Bank)
1 This oxpression was inscrtod by section 2(i) of the Madras Co- opcrativc L ~ n d h4ortgage Banks (Amcndmcnt) Act, 1950 (Madras Act I X of 1950).
3 This ~ ~ ~ ) r e s s i o i l was si~biti t i~ted for tllc exprc\sion " nlortg'Lge h.rnks" by wction 4 of theTamil Nadu Co-operative Land Mortgage itanks (Amendment)A&t, 1969(Til.1nilNadu Act 14of 1969). . aThis expression was substituted for thc expression "Central Mortgage Bank" by ibid.
4 This W,LV s~tbitituted for the w~l .d i "thc total amount duc on the mortgages, ihc amounts paid thereunder and remaining in the hands of the Board or of the Trustee a t such time and the value of all other
f
12
Appoint- ment o r
Trustee
and his
powers and functions. Ouarantm by State Government of principal of,and
interest on, debentures issued under section 4. - - - ---- -
430 Co-operathe and subsisting at such time and (6) the amounts paid under the mortgages aforesaid and remaining in the hands of the Board or of the Trustee at that time].
5. m e Registrar, or where the '[State Govern- ment] appoint any other person in this behalf such person, shall be the Trustee for the purpose of secu- ring the fulfilment of the obligations of the YState Land Development Bank] to the holders of debentures issued by the Board. The mortgages and other assets transferred '(or deemed under the provisions of section 23-A to have been transferred) by the '[primary land development banks] to the 2[State Land Deve- lopment Bank] shall vest in the Trustee from the date of such transfer. The holders of the debentures shall have a floating charge on all such mortgages and assets, on the amount paid under such mortgages and remain- ing in the hands of the Board or of the Trustee and on the other properties of the '[State Land Development Bank]. The powers and functions of the Trustee shall be governed by the instrument of trust executed between the Bank and the Trustee as modified from time to time by mutual agreement between the Board and the Trustee.
6. (1) The principal of, and interest on, the deben- tures issued under section 4 to such maximum amount as may be fixed by the '[State Government] and su5- ject to such co~rditions as they may think fit to impose shall, subject to the provisions of sub-section (3, carry the guarantee of the '[State Government] -
1 The words "Provincial Government " were substituted for the words "Local Government" by the Adaptation Order of 1937 and
thc word "State " was substituted for "Provincial" by the Adapta. tion Order of 1950.
a This expregsion was substituted for the expression "Central Mortgage Bznk" by section 4 of the Tamil Nadu Co-omrltjvc
L ~ n d Mortgage Blnks (Amendment) Act, 1969 (Tamil N ~ d u ~~t 14 of 1969).
3 This expression was inserted by section 3 of the Madras co. operative Land Mortgage Banks (Amendment) Act, 1950 (Madras Act IX of 1950).
13
(3) The "State Government] may, after consult-
ing the Board and the Trustee--
(a) by notification in tlie 6[0fficial Gazette], and
(b) by notice for not less than fourteen days in such of the principal newspapers in the '[State of Tamil Nadu] and of S(oth>r States) as the 6[State Governrneml may s c l ~ t in this behalf, discontinue any guarantee given by them or restrict the maximum
amount thereof or modify the conditions subject to which it is given. with effect from a specified date, not being earlier than six months from the date of publi- cation of the notification in the 6[Official Gazette], In cases where the maximum amount of the guarantee is to be restricted or the conditions subjcct to which the guarantee is given are to be modified, the notification and notice aforesaid shall sct forth with sufficient clearness the scope and effect of the res- triction or modification.
Explanation.-The withdrawal, restriction or modification of any guarantee under this sub-section, shall not affect in any way the guarantee carried by any -- - --
1 Thc words " Provincial Government " were substituted for the words " L?l Go;ernment " by the Adaptati~n Order of ??37 dnd the word State was s h t l t u t e d for Provincial by the Adaptation Order of 1950.
a These words were substituted for the words " thc Leglslatlve Council *' by the Adaptation Order of 1937.
a This word was substrtuted for the word " ChambersM by the Adaptation (Amendment) Order of 1950,
4 This word was subst~tutcd for the word " Provincial by the Adaptation Ordcr'pf 1950.
6 The y r d s Provincial Gzvernnient " were sub\tituted for the words Local Gorernment by the Adaptation Order of 1937 and the word " State ' was bubstituted for " Provincial " by the
14
, . ..w ."
4
Co-oprroria W [1934 : T.N-"Act X Devcloprnm Banks
debentures issued prior to the date on, which such t withdrawal, restriction or modification takes effecr.
7. The '[State Government1 may, in their
O s discretion, g:Iarhntee t3e principal cf, and the interest before on, any dzbentures issued before the commznement
commence- of this Act by the Board. subject to such conditions as
Of the the '[State Governm2ntJ may think fit to impose. Act. Power of 8. The Board may, subject to the approval of the
Board to make Trustee, make regulations not inconsistent with tlie
regulations. provisims *of this Chapter- ~ f r %ing thc psricd of debentures and rate of inu:rtst payable thxeon ;
(ii) for calling in dtbcntures after giving notice , to debrtqture-1lold:rs ;
(iii) for the iisue of tlcw debe~i t~~res in piacc of dzbent~rzs d'un ~ g c d or d:.lrnycd :
( i ~ ) t'or converting O I I C class of debc~lturrs illto another b w i n g a diffci.2:;; I .lit of in~c'rcsl ; and
(v) ge11cr~1IIy f01- c~rrying out tlic provisions of
t h i b C h a p ~ ~ r . CHAPTEll l J I .
L)~.slr~:iizt (,,;xi .S(I/~J cfPi .or / i ic~~. Distrain1 9. ( 1 ) If ;lny i i l taJnl:t~r paynblc u11dl:r :I mortgage
when to be cxccutcd jq fd\ O U I of 1 I>1 1m11.y Iil~ld ( I i \ ~ ~ l o p r n c ~ ~ t made. bank] or any p t r I o r .u:i~ r r~ j i a ln~ tn~ has rc-maincd illlp'iid f o r m )rc than orlc m 1t1t11 from 1112 d-itc 011
wllicll ~t fell dtic., the ci7nlmiltcc may, i l l addrtion lo
any otll:l- renl:cty availablz lo tllc b:lnk, ;lpply to tllc
Rcg~strnr or 10 x!ty pct\,>11 ;~ppoi~ltcd by thc '[State
Go\/?; nrn:llt] irlltl r .:c!,~.:l .> of the MatIra\ Co-c>pcr.a- hl,idras
- - - - --- --
1 The words " 1'1 ovrnc~al G ~ C I i\ri~cnt " ncrc c.t~l-rst~t~~tcd for the words " f;ociil Govc~.nmcnt" by tho Ad4iptation Order of 1937 rind tllc:w~)rd St :~ (c "w. i \ subbtifutcd lor" lJrovlnc~,~l *' by thc Ad,ipl,,. tion Order of 1950.
a T h ~ s expression w n ~ sub\r~tutctl for thc cxlirc\slon "rnortgct2c bank '' by wtion 4 of thc Tdrnrl N.rdu C~-O?CC.LI~VC L n ~ d Mortgage Banks (Amendfncnt) Act, 1969 (T,tnirl N ~ d u Acl 14 of 1969).
* See II& , t l x famil Nadu Co-opcrcltivo Societies Act, 15-61 Tamil Nadu Act 53 of 19611,
\ --------
-
15
1934 : T.N. Act XI Co-operatiue W Development Bunks
/
Central Act IV of 18SZ recovery of such instalment, or part by distraint and
sale of the produce of the mortgaged land including the standing crops thereon. On receipt of such appli- cation, the Registrar or such person may, notwith-
standing anything contained in the Transfer of Pro- perty Act, 1882, take such action as is necessary to distrain and sell such produce :
Provided thar no distraint shall be made after he expiry of twelve months from the date on which zhc instalment fell due.
(2) The distress shall not be excessive ; the value
of the property distrained shall be as nearly as possible, lequal to the amount due and the expenses of the dis- 'traint and the cost of the sale.
10. (1) Before or at the time when a distraint is Distraiut 1
made under section 9, the distrainer shall serve or I cause to be served upon the defaulter a written demand specifying the amount for which the distraint is madc. i
(2) The demand shall be dated and signed by the distrainer and shall be served upon the defaulter by delivering n copy to him or to some adult male member o f his family at his usual place of abode or to his autho- rized agent, or when such service cannot be effected, by affixing a copy of the demand on some conspicuous part of h i s abode and of his land.
I
11. ( I ) If . within fifteen days from the date of ser- vice of the demand referred to in section 10, the de- distniacd. I faulter does not pay the amoiuit for which the distraint was effected, the distrainer may sell in auction the dis- trained property or such part thereof as may in hi&
opinion be necessary to satisfy the demand together. with the expenses of thc distraint and the cost8 of. the sale;
(2) From the proceeds of such sate, a deduction shall be madc at a rate not exceeding '[seven nayq
paise] in the rupee on account of the costs of the .ale.
I ' These words were ybstitutcd for the words " one anna *' by
I
a t ion 2 of. and the ~ c h d u l e lo, theTamil Nadu Coinage (4tqntipg JI Raferancqn) Act, 1969 (Tamil Nadu Act 9 of 1960). 125 -149-24 I
16
Co-operative Land f1934: T.N. Act X Development Banks
(3) From the balance shall be deducted the expenses incurred by the distrainer on account of the distraint.
(4) The remainder, if any, shall be applied to the discharge of the amount for which the distraint was made.
( 5 ) The burplus, if itny, shall be delivered to the pcrson \thobe property has been sold and h: shall be given a receipt for the nmount disclu;~rged from the proceed:, of the snlc.
Powcr of State 12. The '1S:are Govctnmcnt] may makc ru!? ~ : o t Govarnrnent to make rules ~ncoi~si*tent \I i t h this Chapter-
(i) for thc manncr of cKecting di\traint ; (i i ) ]'or 1 1 1 ~ ci~stody. prcserv~t ion J I I ~ sfle of tllc distr:~ined properly ; -
(i:i) fill the investig.tt ion of clnin~s by persons otlicr than the d-faulter to anv right o r iiltcrcst in tho ciistrained propcrty : iund fo~. tllc po\(pnnc~ncnt of t h ~ sale pending such invest igation ;
(iv) for t l ~ c imnicdi:ltc s;ile of pcrisliable articles; :11\d
(v) gc~~cr,tlly f o ~ thc purpose o f ci~rrying o~11 tlie 1)rovi~ions of this Chi~ptcr.
CHAPTER IV.
Polver c ~ f Skle.
'7epealed by Central Act XLVIII of 1952.
17
- * ; i i r ~ i t y l r l l . L 4 L * & ~ d ~ 1 , ----- - -. . . -*--k..aWu&+
'5' a . - .
?T - . -r
A * * *A 1' . I . ' , .
1433: T.N. Act X] Co-operatzve Land 435 Development Banks
expressly conferred on t hk '[primary land development bankj by the mortgage deed, the committee of such bank or any person authorized by such committee in
this behalf shall, in case of default of payment of the mortgage money or any part thereof, have power, in
addition to any other remedy available to the bank, to bring the mortgaged property to sale without the intervention of the Court.
I (2) No such power shall be exercised unless and unt i 1- ((I) the Board has,previously authorized the exercise of the power conferred by sub-section (I) ,
after hearing the objections, if any, of the mortgagor or mortgagors ;
(b) ~zotice in writing requiring payment of such niorlgage money or part has been served upon- ( i ) the mortgagor or each of the morlgagors; ( i i ) any person who has any i~~terest in or charge 11po11 the property mortgageti or in or upon rhc right to redeem the same ;
(iii)any surety for the payment of the rno1.t- gage debt or any part thereof; and
(iv) any creditor of the mortgagor who has jn a suit for the administration of his estate ohtained a decrec for sale of the mortgaged property ; and
(c) default has been made in payment of such mortgage money or part for three months after such service.
14. (1) In exercise of the powr of sale confcrrod t:",'$Fd by section 13, the committee of o '[primary land manner of
development bank] or any person duly authorized by sale. yucll con~mittee, may apply to the sale officer appointed --
1 Thb expression was substituted for the oxpreqion *' mort go b.nk *# by 4 of tho Tamil Nadu. Co-operattve Land &t. gap Banks (Amendment) Agt, 1969 Uamd Nadu 4ct 14 of 1969). 25-1 4-28~
'. b
18
in that bzhalf under section 22 to sell the mortgaged property or any part thereof and such officer shall, after giving notice in writing to all the persons
referred to in section 13 sell such property in the manner prescribed.
(2) The salc shall be by public auction and shall be held in the village where the mortgaged property is situated or at the nearest place of public resort if the sale officer is of opinion that the property is likely to sell to better advantage there.
Applict@ion IS. ( I ) When a mortgaged property has been
to set aside so!d under this Chapter, the mortgagor or any person
sale on deposit and having a right or interest th%rein affected by the sal:,
confirmation may, at any time within thirty days from the date of
of sale i n
default or on
sale. apply to the committee of the I[primary land
dismissal of devclop~iient bank] concerned to have the sale set
S U O ~ appli- aside on his depositing at the office of such bank-
cation. fa) for paymert to the '[primary land deve- lopment bank], the amount specified in the procla- mation of sale together with subsequent interest and the costs, if any, incurred by the bank in bringing the property to sale ; and
(b) for payment to thc porchaser, a sum equal to five per cent of the purchase money.
(2) If such deposit is made, the comnlittee shall make a*rder setting aside the sale,
(3) Where no application is made under sub- section ( I ) or where'such application is made and dis- allowed, the committee shall apply to the principal officer of the co-operative departmept in the district, to make an order confirming the sale and on such officer confirming the sale,* it shall become absolute-
19
1934: T.N. Act X] Co-operatiye Land 437
Development Banks /
16. (1) The proceeds of every sale under this Distribution
Chapter shall be applied by the sale officer, first in ti :::yeeds
payment of all costs, charges and expenses properly incurred by him as incident to the sale or any attempted sale ; secondly, in payment of all interest due on account of the mortgage in consequence whereof the mortgaged property was sold ; thirdly, in payment of the principal money due on account of the mortgage ; and lastly, the residue, if any, shall be paid to the per- son proving hifnself interested in the property sold, or if there are more such persons than one, then to such persons according to their respective interests therein or upon their jojnt receipt,
(2) (a) Any person dissatisfied with the decision of the sale officer in regard to the distribution of such residue may, within thirty days of the communication to him of such decision, institute a suit in a Court to establish the right he claims.
(6) The sale officer shall not distribute such residue until thirty days have elapsed from the com- munication of his decision to all tile persons concerr~ed or. i f a suit has been instituted within the said period of thirty days by any such person, irntil the suit is dis- posed of or otherwise than in, ;iccordancc with the decision of tho Court lhcrein.
Explunatio?~.-11 this sub-section ' Court ' ~ n e a ~ s the Civil Court which would have jurisdiction to cnter- tail1 a suit to enforce the niortgitge and within thelimits of whose jurisdiction the property wld is cituated.
17. Where n snlc o f mortgagcd property has be- Certificate to
come absolute, the sale officer shall grant a certificate ~""C"aFero
specifyit~g the property sold and the name of the person who at the time of the sale is declared to bc the PLW-
chaser. Such certificrtc shall bcnr tiate, the day o n which the sale became ahsolute.
18. (1) Where the mortgaged property sold is in Delivery of
the occupancy of the mortgagor or of some person on property to
his behalf or of some person claiming under a title~'"'"a&Cr' other than a lease for a period not exceeding five years \
20
i?aoperatl~e Land dl934:T.N. A c t X Development Banks
created by the mortgagor subsequent to the mort-
gage in favour of the '[primary land development
bank], and a certificate in respect thereof has been granted under section 17, th t Court shall, on the appli- cation of the purchaser, ordcr dtlivery to be made by puttine such purchaser or any person whom he may appzint to receive delivery on his behalf, in possession of the property.
( 2 ) Where the property sold is in the occupancy of a tcnlint or oiher person entitled to oCcupy the same and a ccrr~ficare in respect thereof has been granted under sccrlon 17, the Court shall. on the application of the purchaser, and after notice to such tenant or other p a o n , oldc; delivery to be made by affixing a copy of the certificate of salt in some conspicuou5 place 011 the property ancl proclairning to the occupant by beat of drum or othcr customarj mods at sowe con~enisnt plac;: illat the interest of thc mortgagor has been tr;inyfcrrcd to the plrclaser.
( 2 ) 111 regard to the cases dealt with in sub- sections ( I ) and ("). the prov~sions ot' rules 97 to 103 of Order SXI of the lir\t schedule to the Code of Civil 1
Procedurt.. 1908. cl1:111 ~nr~ftrti\ n~vtmirii~ and so far as
may bc. , ~ p p l j . E.~plrrritrrion.-111 this sectioti, " Cni~rt " shall have the \rime rneantlli: as in section 1 A. s This axpmrioa was substituted for the expression " ~ e n l r d i Mortgage Bank" by ibid.
21
,193: T.N. Act XI Co-operative Land 439 Developnzent Banks i
1 .
1 20. (1) The Board may, on the application of aAwiot / '[primary land development bank] and under -t of
circumstances in which the power of sale conferred rmiver and ' by section 13 may be exercised, appoint in writing a his powas. , receiver of the produce and income of the mortgaged property or any part thereof and such receiver shall
I
I
be entitled either to take possession of the propertyI
C l or collect its produce and income, as the case may be, to retain out of any money realized by him, his expen- I ses of management including his remuneration, if any, as fixed by tlte Board, and to apply the balance in accordance with the provisjons of sub-section (8)
Central of section 69-A of the Transfer of Property Act, 1882,
Act IV of 1882. ( 2 ) A receiver appointed under sub-section ( I ) may, for sufficient cause and on application made by the mortgagor, be removed by the Board. i
(3) A vacancy in the office of the receiver may be filled up by thc Board.
(4) Nothing in this section shall empower the Board to appoint a rccciver where the mortgaged propcltj is already in the possescion of a receive:
appointcct by a Civil Court.
21. \Vllell a s:i\c has bee11 made in professed exerci\t. of a power of snlc L L I \ ~ C ~ sect ion 1 3 and has Title of purchaser beell conlirmcd under sub-section (3) of section 1 5, to ba
the t ~ l \ r : the purcltiirer shall not be impeachable on irnpeachd
the gsoiinc\ tlmt no case had arisen to authorize the '$Edor
sale 01. \hat due nc3tice was not given or that tlre power imegula~ty, Wac, ntlacr~isc improperly or irregularly exercised but etc.
ally person damni lied by an unauthorized or improperI or il-rcylar exercise of tltc power shall have his in tiamages nsaillst the! l[primary land clev:lopmm"thnnb]. I
22. The Registrar may appoint sale oficers for I the pl l r roreofarnd~ct i~~g sales under tlrischaptcr. ~ ~ ~ ~ & a j d __- . -.- - -
1 This expression was Subqtit~tcd for tho expression "mort- offlc)r 1
gagebank* by s e c t i ~ n 4 of thtr Tamil Nadu Co-operative Land ~ ~ ~ t g ~ g , , Banks (Amendment) Act, 1969 (Tamil Nadu Act 14 of
1969). I 1 . I
1 $*i
22
eo-operative t m d [i931: T.N. Act X Development Banks
purposes of such recovery the Registrar shall have the powers of a Collector under the '[Tamil NadulRevenue Recovery Act, 1864 (*[Tamil Nadu] Act I1 of 1864).
(2) Where any sun1 due to any "primary land development bank1 or the '[State Land Development Bank] is recoverable from any debtor and the immovable property of such debtor is brought to sale under the provisions of the '[Tamil Nadu] Revenue Recovery Act, 1864 ('[Tamil Nadu] Act I1 of 1864) and
the '[primary land development bank] or the "State Land Development Bank] is the purchaser at such sale, the psovisiolls of section 36 of the said Act shall apply thereto as if for the third clause thereof the following clause was sub\tituted, namely :-
" Tliirt1.-The sum due to the purchaser shall be set off, in whole or in part, asainst the purchase money &
'tnd the reniai~~cler. if any, of the purchase money shall! be paid to thc Collector or other officer empowered I)y the Collectc\r in that behalf within thirty days of the date o f sale."]
- - - - -- - - .- - - -
1 This section wa? inserted by ~ection 2 of the Tamil Nadu Co- -
operative Land Mortgage Bank\ (Amendment) Act, 1968 (Tamil Nadu Act 17 of 1068).
2 This cxpres4on was substituted for the expression " mortgage bank " by scclion 4 of theTamil Nadu Co-operative Land Mortgage Rnnks (Amendment) Act, 1969 (T.ctnil Nadu Act 14 of 1969).
8 This axpres~ion was substituted for the expre5sion " Central Mortgage Bank " by ihid.
T h e words ware substituted for the word " Madras" by the Tan~ilNadu Adaptation of Lawc Order, 1969, as amendod by tk. Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969, w\iichramr into force on tho 14th January 1969.
A
23
441 i
Development Banks I / 23. The '[State Government] may make rules not Power of , lriconsistent with this Chapter- State Government
to make (i) for the due proclamation and corlduct of therules. sale ;
(ii) for the recovery of the expenses of proclama- tion and sale;
(iii) for the deposit of the purchase money;
(iv) for the resale of the property, if the purchase money is not deposited ; and
(v) generally for $arrying out the provision. ot' this Chapter.
CHAPTER V.
Jfiscellaneous. ¶[23-A. The mortgages executed in favour of, and Mortgages all other assets transfirred to, a ' [primary land in favour of development bank] by the members thereof shall, r[pr,,,ary with effect from the date of such execution or transfer, land deve-
be deemed to have been transferred by such ~apn"~~''~,,.,
'iprimary land development bank] to the 'I State to stand
Land Development Bank]. *[State vested in Land
Development
Bank].
A.
1 The words " Provincia!~ovenunent " were substituted for the words " Local Government by the Adaptation Order of 1937 and theword "State" was substituted for " Provincial " by tho Adapta- tion Order of 1950.
This section was inserted by section 4 of the Madras Co-operative Land Mortgage Banks (Amendment) Act, 1950 (Madras Act TX
of 1950). -
J m s oxpreesioa was substituted for the axpression mortgage
bank" by section 4 of the Tamil Nadu Co-operative Land Mortgage
Banks (Amendment) Act, 1969 Pamil Nadu Act 14 of 1969).
4 This expryion was substituted for the axpression " Central
Mertp~o Bank by ibid.
24
Co-operatfie Land [I934 ; T.N.' Act X Developinent Banks
Powers of 24. Where any property mortgaged to a '[primary
'[primav ' land development bank] is wholly or- partially des- land d e v s Iopment bank] troyed or the security is rendered insufficient and
in case the mortgagor, having been given a reasonable oppor-
the mort- gaged tunity by the committee of the '[prin~ary land develop-
property is ment bank], of providing further security enough to
whollyor render the whole security sufficient or of repaying partially destroyed such portion of the loan as may be determined by
or the ths committee, has failed to provide such security security is or to repay such portion of the loan, the whole of the
rendered
insufficient. loan shall be deemed to fall due at once and the corn- mittee sl~all be entitled to take action against the n.~ortgagor under section 9 or section 13 for the reco- very thereof.
Explanation.--A security is insufficient within the meaning of thi.; section unless the value of the mortga- ged property exceeds the amount for the time being due o n the mortgage by such proportion as may be specified in the by-laws of the '[primary land deve- lopment bank].
25. (1) The Board or thc Tru
direct 13 or sc:tio~\ %and if tlxc committee neglects or fails
distralnt and do 50, the Board ' 0 1 . t l ~ c Trl~si~cc rnay take such sale of produce and ncticn.
the sale of mortgaged (2) (a) Wltcre sucl\ actlion i s takcn by the Board, property, t,\le provisions of this Act and of any rules or rcgula-
cto. t~ions made tjhereunder shall apply in respect t~hcreto as if all references to tl\\c '[primary land developmcnt~ bank] and tto it4s commi~tlec in the said provisions
t\ ere references to tll1e ?[Stlatle Land Developn~e~~t~ Bank] and t~he Board respect ivcly.
(b) Where such act ion is laken by the Trustee, the provis'ons of this Acl* and of any r~ilcs or regulations made thereunder shall apply in respectl thereto as if ----- - -
1 This expression was substituted for the cxprasion " mortgage bank " by section 4 of the Tamil Nadu Co-operative Land Mortgage Banks (Ammdment) Act, 1969 (Tamil Nadu Act 14 of 1969).
8 This expression was suhstitutcd for the expression "Centrdl Mortgage Bank" by ibid.
25
*... ,.*.. &...
- ~ ~ u ~ . ~ w ~ w . . L ~ L L . -*,,db.*+IYYPW- ..&' ..--. .'.
1934: T.N. Act XI Co-oPeratrve ~ a r l d 433 Development Baltks I
/' all references t o the '[primary land development bank] or to itvs committee in the said provisions were refer- ences to the Tri~stee.
Central 26. Notwithstanding anything contained in the r;:f$fs
k t I V Transfer of Property Act, 1882, the duration of any I lease executed by a mortgagor of property mortgaged to a '[primary land development bank] after tile execu- I tion of the mortgage shall in no case exceed five years. I
27. Notwithstanding anything contained in the Mortgaee Central P~esidcncy Town4 insolvency Act, 1969, or the Pro- not to be vincinl Ia~olvency Act, 1920, a mortgage executed in :'eg$-ed
central ravour of a '[primnry land development bank] shall 01. Act" I I O ~ be called in cluestion on the ground that it was niortgaeor. of 1920' not c ~ c ' c ~ ~ t c d in good faith for valuable consideratton ~r on the groiu~d that i t was executed in o r d e ~ to give tile '[primary land devclopnicnt bank] a pretere~~ce over r l ~ c other cred~to~,\ of thc niortFagor.
28. '1(1)1 A rnortgngc e \ c ~ u f e d in favour of a 2[Prio~ity o r 'rpt iniary Innd de\clnpmcnt brink I nftcr the comtiicnce- mortgage o\ cr other n:ent ol' 111:\ Act \I1311 II;I>.c l>tio~ity over itny clattn cI.tirn\ I OS tllc (;OVCI.IIIIICIII arising fro111 ;1 loan ititdcr ~ I I C
. n r l , LntlLl Imp! o\enlc.~i Loans Ac!, 1 883. rrni\tccl aftcr ,A,G~ XLX thc c\i-culion c.1 (lit 11io1 t?,lpc.. '[(3) W ~ t l i o ~ ~ t l>rcj~i(l*c.c l o thc piwvi\~ons ol' CLII>-\CL. l t ) l l ( I ) . ,11l: I ( I I \ \ ' ! ~ I ~ \ ~ : ~ I ~ c I I I I P iltt).1I1111~ COII - tllincd I I I tllc 4lTa111ll N ~ c l 1 1 l CO-OI>CI-;LCI\CSOCIC~~C\ Act.
1 961 ( 4 1 r ; ~ ~ n i l N'tdr~ I Act 5.3 o f 1 96 I ) ot 1 1 1 arty other Inw for the tttne being in fo~.cc, :i ~iiortgagc cxccuted - 1 c\pres\lon u.t\ aub~titu~cd for he cxprc\sion "mol tg ~ g c bdllk h\ \ C C ~ I I ~ I I 4 0 1 I ~ I C T , I I I ~ I ~ V ~ d u Co-opc~~.cl!\c i . ~ n d Morr- g.lge H31ih\ (~\rnend~iienr) Act. 1000 (7',lrnil Nadu Act 14 of 196')) Scc.11011 28 ren~l~libereil .IS aub-wction (1) or tl~nt xction and 1111. ~n.irginal he.ld~ng \\.ah \~ th~t~t t t tcc l by r e ~ l l o n 3 (a) of the 'r,rn~il N$~tlit C'o-oper,lti\ J I and hlnrtg.\gc H,~nk\ (Amendment) Act, 1968 ( T,tni~l Nadu Act 17 01' 11)6S) 8 Tlu, \tth.scct~on \\,I\ i~ddaci by \cctiotl 3 (h), rhrd . 4 Tllc,a words were \tibsliti~ted A)r the word " Madras" by the Tan~l l N.idu Adapt;ttion of Law\ Order, 10hl), a\ .~nicnded by the TaniiI N,~du Adaptntion of Laws (Seoond Amendment) Order, 1969, I
1
.+aiuJ*Wurr " . -&w*. .* .*L-uII&.(I-~ -. . ,..nr..ll-*U ' - - -
I 444 ao-operative Jund 11934: T.N. Act X Development Banks
in favour of a '[primary land development bank]
after the 4th day of July 1968, shall, subject to the claim of the Government in respect of land revenue, have priority over all other claims against the pro- perty secured by such mortgage.]
verificatioo of *[28.-A. A a[primary land development bank] shall,
.ncumbrancos. before advancing any loan on the security of any immovable property, verify encumbrances, if any, for a pzriod of thirteen years immediately preceding the date of advance of such loan affecting such immo- vable property.]
ltigkt .f ;primary
29. Where a mortgage is executed in favour of
;sddwe- a '[primary land development bank] for payment of
~pmcnt prior debts of the mortgagor, the bank may, notwith- '* standing the provisions of sections 83 and 84 of the i;ier debts I molt- Transfer of Property Act, 1882, by notice in writing Ceatral
300F. require any person to whom any such debt is due to A G ~ IV
receive payment of such debt or part thereof from of 1 ~ 3 7 .
the bank '[at its registered office] within such period as [nay be specilicd in the notice. If any such person fails to rcccivc such notice or such payment, sucl~ debt or part thcreof, as the case 'may be, shall cease to carry interest frnni thc expiration of tltc period specified in the nolicc :
Provided that whcrc tlterc is a dispute as regards the amount of any such debt, t l ~ c person to wlto~n such debt is due shall bc bound to receive payment of the .- - - - - - - - -- - -
1 This axpression w ~ \ \~~hstituted fol* the cxprcsion " mortgage bank" by section 4 of tllr r'lmil Nndu ('0-operative Land Mortgage Banks (Amendment) Act, 1969 (Tamil Nndu Act {4 of 1969).
1 This section waq inwrted by section 4 of the Tamil Nadu Co- operative Land Mortgage Banks (Amondment) Act, 1968 (Tamil Nadu Act 17 of 1'968).
The words within square bracket9 were inscrtedby soction 2 of the Madras Co-oparativa Land Mortgage Banks (Amondment) ~ c t , 1935 (Madras Act XVIt or 1935).
27
1934: T.N. Act XI Co-operative Land 445 Development Banks
1 ,I
amount offered by the '[primary land development ' i
bank] towards the debt, but such receipt shall 'not ~rcjudice the right, if any, of such person, to recover
the balance claimed by him.I
Fewer to *! 29-A. ( I ) Subject to such restrictiqns, limita- s u m e n
tions and conditions as may be prescribed, the Registrar witnesses
and persons subordinate to the Registrar who are ;:tu,"tion
authorized by him in this behalf by general or special documents. ortlcr in writing, and such other persons, being ofEcials engaged i n the relief of rural indebtedness or officers I of co-operative banks which are registered or deemed ,
Madras to he registered under the Madras Co-operative t;3'2F Of ~ o c i c t ies Act. 1932'. as the '(State) Government m;lY, by notification in the Fort St. George G ~ z e t t e
i
I
:tl~tt~orize in this behalf, shall have the same powersI
Central ; is ;rrc vested in a Court under the Code of Civil Pro- f$: of ~ ~ t l t ~ r e , 1908. when trying a suit, in respect of the f i ) l l o~v i~~g matters, namely: - I
(n) enforcing the attendance of any person and cx;~~~lining him on oath or affirmation ;
(h) compelling the producl ion of documents; :111tl
(c) issiring commissions for the examination o I' \vi t nesses.
(2) Any cf the officers or persons authorized by
,>I. t ~ ~ ~ t l e r sub-section (I) may require any person present h~.I'o~.r: Itim to furnish any information or to produce
any clocument then and there in his possession or
I 'll,i\ eupreqsion was substituted for the expression "mortgage Iylnk " b v section 4 of the Tamil Nadu Co-operative Land Mortgage 11,11lkr (Amendment) Act, 1969 (Tamil Nadu Act 14 of 1969).
8 Swtion 29-A was inserted by section 2 of the Madras Co-opera- t i \ o ~,t\nd Mortgage Banks (Amendment) Act, 1939 (Madras Act x ~ l l l of 1939).
8 ,n\lq word was substituted for the word "Provincial" by th4
~daptat ion Order of 1950.
* ,Vow see tho Tamil Nadu Co-opera tiva Societies A
28
Co-opernrive Lmd [I934 : T.N. Act X Develupbaent Banks
(3) Any offiser or pcrson before wlrom any .Jucument is produced under sub-section (1) or sub- section (1) shall have pons: to take, or to authorize the takin J of. such copies of the document or of any entries thxein as such officer or person may colnsider nezessar:. Copies so taken shall when certified in such maruner as may be prescribed, be admissible in evidenze for any purposs ir, the same manner and to the sa!ne extent ai the original document or the entries tilsrcln as thc case n ~ a y be.
(4) ((1) A-1: person who \vilfillly or witbovt re;lsonabie excilsc di4ob:y.; any summons, requisilion o r order i,\tlcd i~ncler sub-sesrior: ( I ) or sub-sect~on (2), shall b-. put>lsn:lble \\ith fil~i. ~vhich may extend to fifty rupcec and in the casc of n col~tinuing disobe- dience with a,, additinnal tint. \vhich may extend to f i l e siipec\ f c ~ r every day dui-ing which such disobe- ~ ~ C I I C C c >ntit~tr(.s :ifte:. con! iction for the last such cli~nhctfiencc.
( h ) No Cottlt ivfel lo r to that of :! *Presidency Magi$tl.:!tc (31. n :-ML~gicrlo~c of the fissr class sllall 1 1 Y ally offcncc 1111tler clauw ( ( 1 ) .
( ( l ) No ~>,.osccution shill bc itlstituted under cl,llt
w,t, i4suetl by thc Rcgistrnr or any person subordi- llxtc to him or hy any officcr of a co-operative bank ; nnd
(ii) of tlnz Collector of the district in other c;ts:s. _- - - - - .-
1974).
I
29
---------- - --.---.-*l.*.......*.~."..* ', .,. . . . * - - ~ - - - - ~ ' , * ' * , L ..,... -. _ _ 1 . . - - .
1934 i T.N. ~ c t XI Co-operativc Land 441
Development Banks
Such sanction shall not be given without giving the party concerned an opportunity to be heard.
(5) The '(State) Government shall have power to make rules for giving effect to the provisions of this section.1
30. (1) Notwithstanding anything contained in ~ ; $ ~ ~ ~ $ ~ ~ s
the Indian Registration Act, 1908, i t shall not be neces- exccufed on of ,908. sary for any Director, Secretary or other officer of a p$;s;l"rC;and *[primary land development bank] or of the .[State ~ , , , o p ~ , , n , Land Development Bank] to appear in persorl or by bank] o r of the agent at any registration office in any proceeding con- ~ ~ ; ~ , ~ ~ : : ~ , llected with the registration of any j~~strument execu- Bank].
ted by him in his official capacity 01. to sic11 as pro- vided in section 58 of that Act.
(2) Where any instrument is SO cxecutcd, the registering officer to whom such instrument is pre- sented for registr~tiotl may, if he thinks fit. refcr to such Director, Secretary or office^ for information respecting the same, and, on being satisfietl of thc cxc- cution thereof, shall register the instrument. 31, 4[Notwithstanding that n, mortgage e x c l \ 'c.d I'o\vCt C I 2 [ p r ~ ~ ~ i , u ! I C . ld in favour of a z[p:im;iry land devclopmc~lt bank 1 h s tlovcl,,pmLn
been Irai~sferrecl, nr i s d(1~rned ulldr~r t11e ],rovl>lc>n bdnh] to I ~ L C I \ ~ of section 23-A to have been tmnsferrcd, t o 1 he ' ( S t n ~ c " I :iyy:;',{:
Land D,-velopmalt Bank)]- d, . go
not\$ II\I ~ ~ ~ I I I I I
(a) all moIwys due imder the mortgage sh'dl, ~n a\vg,l., n ~ , r t l~e abscocc of any spcc~fic direction to tlic contr;lry ;;;;~a~;s;lLl~ issued by thc Board or Trustce and communicated to D,,,;,,,,, --- -- - - - - - - . - - lncnt Bank].
3 Tllis word was substituted for the uord " Plo \ rnc i 11 " I,y tho
~ \ d a ~ t , ~ f i o n O r d e r of 1970
8 TIIIS Oxpresslon wJs stlbstltutcd for the. euplc\s!on " rlcol tgdgr ,
b.lnl\ " by swt ton 4 of the Tslmiil Nadu C o - o p c i a ~ t v c Lantl M o l t - gage B ~ n k s (Amendmenr)Act, 1969 (Tarn11 Nadu AGI 14 (,( 1060).
8 This exprenqion way ~ubs t l tu lcd for the cxpre5,ltrn " Ccnlral Mortgage Rank" by chid
r T~lisevpresbion w.15 tubvtitulrd fcr thc wortls " N t , ~ w t ~ h ~ t , i n d -
iny tile tranqfer ?,fa mortgage by :I mortgage b'ttlk to tilo CLlllrdl Mortyago Bank by ser;tlOn 5 of the Mddras Co-opera l~ve Ldnd Mortgage Banks (~menamtnt) Act, 1950 (Madras Act IX of 1350).
\
1
-
30
1 448 Co-operative Land 11934 : .T.N. ,Act X
k Development Banks
the mortgagor, be payable to the '[primary land de-
velopment bank] and such paymmt shall-be as valid as if the mortgage had not been so transferred; and
(b) the '[primary land development bank] shall, in the absence of any specific direction to the contrary issued by the Board or Trustee and communicated to th_e '[primary land development bank], be entitled to sue on the mortgage or take any other proceeding for t h ~ e c o ~ e r y of the moneys due under the mortgage.
'[32. (1) Where a mortgage executed in favour of a '[primary land development bank] eithzr before or after the passing of this Act is called in question on the g,round that it was executed by the manager of a joint Hindu family or the karnavan o: a Marumak- kattzyam tarwad or tavazhi or of a Nambudri illom. or the manager of a Thiyy,~ or Ezhava family, or the eja~nan or ejanlanthi of an Aliyasantana family, for a purpose not binding on the mzrnbers thereof, whether mqjors or mitlors, the burden of proving the same shall, notwithstandint: any law to the contrary, be on the party raising it.
(2) A mortgage exec~ttud in favour of a l[primary I:\11d developlnent bank] by the manager of a joint Hindu family or the karn:~van of a Martimakkattayar~l tarwad or tavtizhi or of a Nnmbudri illom or the mana- ger of a Thiyya or Ezhavi~ family or the ejamar~ or ;jamanthi of an Aliyasantni~a family shall be binding on the members thereof, whether majors or minors, if the loan secured by the mortgage was granted for
any of the following purposes, namely :-
(a) the improvement of agricultural land or of the methods of cultivntion ; and
(b) the purchase of land.] --
1 This expression was substituted fur tjle expression " mortgage bank " b section 4 of the Tamil Nadu Co-operative Land Mortgage Banks ( k n d r n c n t ) Act, 1969 (Tarni: Nadu Act 1401 1969). s This ssctioa was subvtItuted for the original section 32 by *ticxu 6 of tho Madras Co-operative Land Mortgage Banks (Amendment) Act, 1950 (Madras Act 1Y of 1950).
31
1934 : T.N. Act X] Co-operative tand 449 Development Battks
I 11
1
Proof o f 2[32-B. Any '[primary land development bank] or document, the 4[State Land Development Bank] may grant copies or entries in of any document obtained and kept by it in the coLlrse d0cuwent8. of its business, or of any entries in such document ; and any copy so granted shall, when certified in such manner as iilay be prescribed, be admissible in evidence Chapters 1x1
for any p~lrpose in the sanlc manner and to the same and IV t o
extent 3s the original C ~ O C L I M P I ~ ~ , or the entries therein, 7:::; as the cnse may be.] advanced by
&[primary land
dcvciopment 33. The provisio!~~ of Chipters 111 and I\' sh:!ll banks] from apply also to the loans advanced by '[primary land funds not Development blnksj from f ~ ~ ~ t d s which have not been ~~~~~~'f~~~d / borrotved from the 4[S!ate Land Development Bank]. Dcvelopnlent , Bank].
Service of 34. Whenever itndel. the procisiv~ls of this Act notice is required to be given to :my persol1 in writing, under 1110 Act, it sh:~ll be sufficient to send si~cll notice by ~.cgistorcd post. * Suction% 102,
103 and 104
of the Transfer
Central 35. T11: provi\io~ls of secrions 101 31;cl 103 01' the of property~ct, 1V T r a ~ ~ c f e ~ . uf Property Act, 1883, and o f any rulcl madc 1882 to apply
or l f87. by thc t4illll C o u ~ t iindcr stction 10.1 of Illat Aci for 1 1 ~ t i c c ~ . Lo sL1 "
carr)lin? out of tile I)LIrpobch 01' 1 1 1 ~ \ , L I ~ wctio~ls
shall ;~ppI!'. so Lir :i., ,,;,LY bLs. in I - C ~ P C C ! "I' ;\!I 1:otices to t7c SCI L C C ~ C I I I C ~ ~ \ S t J l i 4 Act.
Srclialn ZZ-A wl~icii was itissrrcd l ~ y .;cctia,n 7 (lf thc Madras C>,-
opcrativc l.;tnd Mortgigc 13;inh\ ( , \~n~:~i t l~nent) Ac , I9.;0 (Madras Act I>; {%I' IO.-aO) was milled by cl;~c~sc 3 O B I ' , :rnd tlic Schcdulc t~!, tllc Madlxs X~l;,l>tution 01' Liiws Ordcr, lL):>7.
* 'flli.: .;ccti~bn w i ~ i nwrled by x~ctivri 2 i ~ f the Mitdras Co-opcr:i-
tive L:iti~i hlt,~.tg:tgc 13.1nhs (SccontL Anlcnclmcnt) Act, l%'O (Madla3 Act XSll o f lt)nA~O).
"his c.spre.;ri,~i~ \\.:is sttbititi~tr~d Tor ~ h c i'rp~'cssion " mtrrtyayc bank " bv section 4 of the Til l~~i l Ni~tlu C'tj-'iperativc Land Mort- gage Banks(Arncn~11n~n1) Act, 1969 (Tamil Na.Ju Act 14 ( I T 1969).
4 'l'liis csl,rc.;si(~n was substittrtctl 1;lr thc cxpressic~n " Central
Mo r~g:igc Hank " by ihitl.
This e~pression \\,as su bstitirtefl for the expression " nlort- gape ball ks " by ihid.
1 2 5 - 1 6 2 9
32
4% CO-operative and ' f1934 : ?.N. Act X
/ Development Banks
Officers of 36. At any sale of movable or immovable property
iIprimary land held under the provisions of this Act in order to re- dtvelopnlent cover any money due to a 3[primary land develop- $ ~ ~ ~ , " ~ : n d ment bank], no Director, Secretary or other officer
Development of such bank or of the ZEStateLand Dzvelopment Bank1 (except on behalf of the bank of which he is a Director
bid at or an officer) andno sale officer or other person having any duty to perform in connexion with such sale, shall eitller directly or indirectly, bid for or acquire or attempt to acquire any interest in such property. Va t ing of asjets '[36-A. On and from the date of the commence, and liabilities. inont of the Amendment Act, all assets and liabilities
of the existing Madras Co-operative Central Land Mortgage Bank and the existing mortgage banks shall stand transfcrred to, and vest in, the State Land Dzvelopment Bank and the primary land development b:lnks respectively.]
Delegation of 37. The Board may, i f it thinks fit, delegate all or certain powers :illy of its po\\'c.rs under scct ions 13, 20 and 25 to an
by Board. rxecuti\.e com~nittee constituted by it and consisting of two o r more of its mcmbers.
Power o f B~~~~ 38. Notwitl~s[anding :lnything co~~tained in the Madras to make resu- Mntlrr!i Co-operxtrve Socrclics Act, 1939*. o r the rules a, Iitions. nindc therc~u~tl~*r, thc Board \hall h:l\'e a general of 1932
po\vi.r of ~upcr\~lston vcr the '[primary 1;111d develop-
nle11t banks] and may mil kc regular ions not incon-
si\tent wit11 (Ilia Act or t l~c ~ L I I L . ~ madc thcreunder-
(a) for Olc inspection o f the accoilnt books and psoccedir~g\ of prim:^^-y I:l~ld devclopmcut banks] ;
___I___ _ -- ----- - --- -- _^ I-UI-. Th.t cu:>rc,\iun wa\ suhs t i t~~ted f*)r the expression " nlortgagc
banks" by scctr~~tl 4 o f t h c ' r , ~ m ~ l N d u Ct~-tlper;\fr\.c Land Mortgnyc U d ~ i k s (Arnendtllcllt) Act, 1969 (Tarnil Nadir Act 14 of 1969). 'This exprc,.;i,jn was S L I ~ ~ ~ ~ ~ I I I C ~ f4)r the expression "Central Mljrtgage Rat~k'' by ihld.
This expie,.;it,n was substituted f o r the exprcssion "morfyagl bank" by ihid.
This section was inserted by scclion 6, ibid.
* Now see tile Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961).
.
33
I
b
' " .-L.-~ ',
1934 i T.N. Act $1 Co-operatlye tand 441
1" '
Development Banks I
I
(b) for the submission of returns and reports/ by '[primary land development banks] in respect of their transactions ;
(c) for the psriodical settlement of accounts between '[primary land development ,banks] and the I i '[State Land Dzvelopment Bank] and for the paymentI of the amounts recovered by '[primary land dettelop- ment banks] on mortgages transferred '[or deemed under the provisions of sectioll 23-A to have been i
transferred] to the '[State Land Development Bank];
( d ) prescribing the form in which applications to '[primary land developmellt banks] for loans should I be made and for the valuation of the properties offered as security for such loans ; I I
(e) for the investment of moneys realized from the ~nortgagors ;and
Cf) generally for the purpose of safeguarding the interests of the parties concerned and for carrying out tlte purposes of this Act.
4138-A. (1) All rules made under this Act shall be Publication g ies, corn- of
published in the Fort St. George Gazette and, unless mencement of
they are expressed to come into force on a particular rules and plat- day, shAl come into force on the day on which they ~ ' $ ~ ~ ~ ~ ~ arc so published.
(2) Every rule made under this Act shall, as soon ns possible aftcr it is made, be placed on the table of both Houses of the Legislature, and if, before the expiry of the session in which it is so placed or the This expression was substituted f Or the expression "mort- gage banks" by section 4 of the Tamil Nadu Co-opcrative Land Mortgage Banks (Amendment) Act, 1969 (Tamil Nadu Act 14 of
1969).
alThis expres~ion was substituted for the expression "Central Mortgage Dank by ibid.
8 These words, figures and letter were inserted by section 8 of the Madras Co-operative Land Mortgage Banks (Amendment) Act, 1960 (Madras Act IX of 1960).
4 Sections 38-A, 38-R and 3 8 4 were added by section 7 of the I
Tamit Nadu Co-operative Land Mortgage Banks (Amendment)
Act, 1969 (Tamil Nadu Act 14 of 1969).
125-14-29~
I
34
. h", . I,
452 ~ w p e r a t i v e Lana [I934 : T. N. Act X Development Barika
next session, both Houses agree in making any modi- fication in any such rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modi4ed form or be of no effect, as the case may be, so however, that any suchmodi- fi:a:ion or alinulment shsll be without prejudice to th2 ~ d i d i t y of anything previously done under that rule.]
Construction ' 3S-3. Referelices to a " Central Mortgage Bank "
~ , ' f , ~ ~ ~ : ~ and . ' t n o i t p ~ ~ bank" in any law or instrument for
Mortg~g- the ~ ' , n e be~ilg i i ~ f0i.c~ i : ~ tius State, shall with effcct
B I I I ~ "
and on an-1 from the date of the conlmencelnent of the amortgzge Am:ngment Act, be construed as references to the bank". " S~zre Land Development Bank " and " primary land development bank " respectively.
Aot to I 38-C.The :~rovisions of this Act shall have effect override
other nc~:\l:;rhstn nq anythins inconsistent therewith con- laws. taincd in t 'c "Tainil Nadul Co-operative Societies Act,
1961 (z[Tamil Nadu] Act 53 of 196!) 3[or in any rule 2s by-law (~ncluding ;he by-law of any r : stered co-opzrativc society) or in any other law] f ' he time being in force,
Szctions #-A, 38-B ant1 38-C were added by section 7 of the Tamil Nadu Co-operative Lnnd Mortgage Banks (Amendment) Act, 1969 (Tam11 Nadu Act 14 of 1969).
"These wo rdu were substituted for the word " Madras " by the
Tam1 Nadu Ad~ptaiion of Laws Order, 1969, as amended by the Tamil Nadu Adaptation of Laws (Second Amendment) Order ,1969. ' These words ta;nd brackets were substituted for the words "or in an other I U W by section 4 of the Tamil N ~ d u Co-operative d Lan Development Banks (Amendment) Act, 1970 (Tamil Nadu A c t
4 o f 1970).
35
1979 : T. N. Act 3 51 Co-operatire had Devetopmenf 995
Banks (Amenbnt )
I TAMIL NADU ACT NO. 35 OF 1979.*
I THE TAMIL NADU CO-OPERATIVE LAND DEVELOPMENT BANKS (AMENDMENT) ACT, 1979.
[Received the assent of the Governor on the 30th May 1979, first published in the Tamil Nadu Government Gazette
Extraordinary on the 2nd June 1979 (Vaikasi 19,
Chitharthi (20 10-Tiruvalluwr Andu)). ]
An Act further to amend the Tamil Nadu Co-opera- tive Land Development Banks Act, 1934.
BB it enacted by the Legislature of the State of Tamil Nadu in the Thirtieth Yea1 of the Republic of India as follows :-
1. This Act may be called the Tamil Nadu Co- Short title. operative Land Development Banks (Amendment) Act,
1979.
a. For section 3-D of the Tamil Nadu Co-operative Substitution Land Development Banks Act, 1934 (Tamil Nadu Act X of of new set- 1934) (herqinafter referred to as the principal Act), the tion for following section shall be substituted, namely :- section 3-D, Tamil Nadu Act
X of 1934. &' 3-D. Purposes for which loans may be granted.- A primary land development bank or the State Land Development Bank may gIant loans for all or any of the following purposes, namely :-
(a) development of agriculture including making land fit for cultivation, improvement of land, development of sources of irrigation ;
(b) (i) animal husbandry, j
(ii) pisciculture including fish catching,
(iii) apioulture,
(iv) sericultare * For Statement of Objects and Reasons, see Tamil Nadu Government Gazette Extraordinary, dated the 2 5t h Apri 1 1979,
Part IV-Section 1, Pam 269. 125-10-63~
36
99'5 ~ a g e r a t i v e Land berelop b t [U79 :T. W. Act 35 '
Banks (Amendment)
A
l and all activities incidental or ancillary thereto ;
(c) activities connected with processing, storage, transport and marketing of produce of agriculture, animal husbandry, pisciculture, apiculture and sericulture ;
(d) purchase of tools, implements, machinery and eattle for use ~n any of the above purposes ;
(e) such o t k purposes as the State Government may, by notification, specify in this behalf. I Explanation.-For the purposes of this section- I (a) ' agriculture ' includes horticulture, raising of crops (including plantation, t reemps and garden pro- d~=),seed farm~ng and forestry ; and
(b) ' animal husbandry ' includes cattle breeding, dairy fanning, piggery and poultry farming.".
3. In sub-section (1) of section 4-A of the principal
~ ~ ~ m ~ ~ , O f ~ c t , for the words " in respect of loans granted to the
fmil Nadu Tamil Nadu State Electricity Board ", the words "in
at X of 1934. respect of loans granted to sueh-
(i) corporations ;
(ii) local bodies ;
(iii) institutions ;
(iv) oo-operative societies ; and
(v) individuals as may be approved by the State Government * shall be mbrtitaued.
I
37