The ODISHA AGRICULTURAL CREDIT OPERATIONS AND MISCELLANEOUS PROVISIONS (BANKS) ACT, 1975

'ITHE ORISSA AGRICULTURAL CREDm OPERA- TIONS AND MISCELLANEOUS PROVISIONS (BANKS) ACT, 19'751 [ Receivrd fAe assent of the Presidefit or1 fhe 24t1i October 1975,jrst p?cblisheCI ilt arl extra- orditlary issue nj' Oriss a Gazette, (luted //re 12th Novcrnber 1975 1 AN ACT TO MAKE PROVISIONS TO FACILITATE ADEQUATE FLOW OF CREDIT FOR AGRICULTURAL PRODUC- TION AND DEVELOPMENT THROUGH BANKS AND OTHER 1 NSTITUTIONAL CREDIT AGENCIES AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO Be it enacted by the Legislature of the State of Orissa in the Twecty-sixth Year of the Republic of India, as follows :- PRELlMlNARY I z&;ttEi ! 1. (1) This Act may be called the Orissa Agri- cultural Credit Operations and Miscetlaneous ,,-u,,. Provisions (Banks) Act; 1-975. mcnt. ! (2) It shall extend to the whole of the State of Orissa. (3) Tt shall come into force on such date as the State Government may, by notification, appoint in this behalf and different dates may be appointed for different provisions of this Act and for daerent areas of the State. 2. In this Act, unless the context otherwise Dcliflitioas requires,- (a) '' agriculture " shall include making land fit for cultivation, cuItivation of land, - improvement of land including develop ment of sources of irrigation, raising and 1. For Statement of Objccls and Reasons, see Orissa C~zette,E xtra- ordinary, dated thc 19th Marcb 1975 (No. 574). 8 14 THEO RrssA AGRICULTURCARL EDITO PERATIONASN D [Or. Act harvesting of crops, horticulture, forestry, plat~tiog and farming and cattle breeding, animal husbandry, dairy farming, seed farming, pisciculture, apicu!t ure, sericulturc, piggery, poultry farming and such other activities as are generally carried on by agriculturists, dairy farmers, cattle breeders, poultr farmers and ther cate- J G gories of persfins engaged in similar acti- vities including marketing of agriculiural products, their storage and transport and the acquisition of implements and machi- nery in connection with any such activity and the expression " agricultural purpose" shall be const rued accordingly; (b) "agriculturist" means a person who earns income from agriculture; (c) "Asro-Industries Corporation" means a company or other body corporate, one of the principal objectives of which is to under- take activities connected with or intended for the development of agriculture and not less than uty-one per cent of the paid up share capital of which is held by the Central Government or by any State Government or Governments or partly by thecentral a~veanrnenta nd partly by one or more State Governments; (i) a banking company within the meaning of the BankJng Regulation Act, 19491 10 of1949 (-ii) .th e State Bank of India constituted under the State Bank of India Act, 23 01 195s 1955; (iii) a subsidiary Bank within the meaning of the State Bank of India (Subsi- diary Ranks) ct, 1959; 3s of 1959 (iv) a corresponding new bank within the meaning of the Banking Companies ,,, ,,,, Acquisition and Transfer of Under- takings) Act, 1970; (v) Agricultural Refinance Corporation established under the Agricultural Refinance Corporation Act, 1963; 1.0 or 1963 (vi) the Agro-In dustries Corporation as defined in clause (c); (l!ii) the Agricultural Finance Corporation Litui! ed , a company incorporated under the Companies Act, 1956; and (stiii) any othe r financial institution notified by the State Government as ra b:rok for the purposes of this Act; (e) "co-operative saciety" means a co-opera- live society registered or deemed to be registered under ?he Orissa Co-operative Societies Act, 1962, the object of which is to provide financial assistance as defined in clause (f) to its rnernbe~s and includes st Iad devtIopment b m k as defined in that Act; ()! ''financial assistance" for the purpose of this Act, means assistance granted by way of loans, advznces, guarantee or otherwise for agricultural purpose; (g) "Registrar of Co-operative Societies" means, the person appointed as such by the State Government under section 3 Oriw Act of the Orissa Go-operative Societies Act, 2 of 1963. 1962. RIGHTS OF AGRICULTURISTS TO CREATE CHARGE O'N LAND AND INTERESTS THEREIN IN FAVOUR OF BANKS 3. (1) It shall be lawful foi an agriculturist to ~ ~ ~ ; ; z l ~ f create a charge on the movable property owned by E crop m i d : ;r~s; hiin or on the crops raised by him, standing or o thenvise, or other produce from Ia nd cultiva tcd by in favour him, to the extent of his interest therein, in favour Of bariks- of a bank to secure financial assistance. (2) Notwithstanding anything to the contrary in the Orissa Co-operative Societies Act, 1962 or in O 0f r 1 is 9 s 6 a 3 A . c t 2 any other lawfor the tinlebeine;inforca,incases where the financial assistance given by a bonk is prior in point of time to that of the financial assistance extended by a Co-operaL ive Society, no charge it1 respeci of such finallcia1 assistance extcnded hp the Co-operat ive Society shall have priority over n &a*-gcd on the crops raised by him, standing or otherwise, or on any other movable property in respect of any financial assistance given to hiin by a bank. Creation of 4. (1) W11er.e an agriculturist creatcs a c1~11.gi: c la h n o d r g i c ll on 011 Iartd, or ally other itnmovable pl-opcl'ty i:)flich Ill: OWIIS 01'i n which hc I~asn n i~~teresitn rzspcct oi' fa hank (b y n declnrfitiun. arly fi nancirtl assistance given to him by il bank, hf: shall make a declaration in the form sei out in the sclledule hereto or as near thereto as circurns ta ilccs permit, declaring that thereby he creates, fauoul- ill of the bank, a charge on such lsncl or his interest therein, or other im.~novable property, as the case may be, to secure the financial assistahce given to him by the bank. (2) A declaration made under sub-section (1) may be varied from time to time by the agriculturist with the consent of the bank in whose favour the declaration has been made and any such vari n t'l on shall take effect from such date on which the variation, if it had been an original declaration., would have effect under section 7. EHARGES AND MORTGAGES IN FAVOUR OF BANKS AND THEIR PRIORITIES ,,,,, ., 5. Notwithstanding anything to the contrary con- orissa A C ~ c d c h r is a c a r a b g t e il i i o t a y ~ n o~ d f i n t D a T i n in ed a i n n y th o e th O er r iss la a w - C f o o - r o p th e e ra t t i i m ve e S b o e c in ie g t ie i s n A fo ct r , c e 1 a 9 n 6 d 2 hf rnortgngcs. notjvithstanding that any land- or interest therein stands already charged or mortgaged in favour of a Co-operative Society, it shall be lawful for arl agricult~zrist to create a charge or mortgage on sucl) land or interest therein in favour of a bank as security for any financial assistance given to the agriculturist by that bank, Priority of 6. (I) Notwithstanding anything to the contrary charflcs and in any law for the the behg in force,- morl~36CS in hvour of Govcrnrncnt ,r n CO- (a) no charge or mortgage created on any land .petntavc or interest thereh, after the comence- ocicty. ment of this Act, in favour of Govern- ment in respect of a loan under the Land Improvenlent Loans Act, 1883 or the Agriculturist's Loans Act, 158d or in favour of a Co-opcrative Society ilz respect of a Ioan granted by such society, shall have priority over a charge or mortgage on such land or intercst created by an agri- culturist in favour of a bank as security for financial assistance given to .the agriculturist by the bank after the com- mencemetlt of this Act and prior to the charge or mortgage in favour of Govern- ment or the Co-operative Society, as the case may be; and (b) any charge or mortgage created on any i~. .-;.! land or interest therein in favour of a bank in respect of financial assistance given to an agriculturist by that bank .. shall have priority over any other charge , or mortgage that may have been created over such land or interest in favour of - I any. person other than Government, a co-operathe society or any other bank, . .' . prior. to the date on which the charge or ' L . m ortgage was created in'favour of the bank. . . (2) Where. different charges or mortgages over '- the same land or interest therein have been created by an 'agriculturist in favour of Government, a co- operative society or a bank or more than one bank, any such charge or mortgage created as security for financial assistance given by Government, co-operative society or the bank or banks by way of tcnn loan for development purposes shall have priority over the other charges or mortgages created in favotrr of Government, co-operativc society or any of the banks, provided prior notice of any sucl~fi nancia1 assistance by way of term loan for developn~ent purpose had been given to such Govermne~ltc, o-opera t ive society er bank and such Governlent, co-operaf ive society or.bank has concurred in such financial assistance, abd where more ,than one such cl~argeo r mortgag is as security for financial assistance given by way of term loan, the charges or ~nortgagesb y way of security for term loan for development purposes will rank for priority in zcc~rdance with the dates of their creation. Explar.lario!l,--For the purposes of tlds section, "term loail for development purpose" shall mean financial assistance which would generally lead to improvement of agriculture or building up of assets in agricult~rreb, ut shall not include financial assistance for meeting wcrIciqg capital expenses, seasonal agricultural operations and marketing of crops. (3) Nothing in this section shall apply to borrowings only from one or more co-operative societies. 7. Notwithstanding anything contained in the R .r e c g h is a t r r = a tion Registration Act, 1908, a charge in respect of which Id or 1908 and marl- a decIaration has been made under sub-section (1) gage in of section 4, or in respect of which a variation has favour banks. been made under sub-section (2) of that section, or a mortgage executed by an agriculturist in favour of a bank in respect of financial assistance given by that bank, shall be deemed to have, been duly registered in accordance with the provisions of that Act, with effect from the date of such charge, varia- tion or mortgage, as the case may be, provided that the bank sends to the SuGRegistrar within the loc o a f l limits of whose jurisdiction the whole or anypqrt the property charged or mortgaged is situate, withh a period of thirty days, by registered post with acknowledgement due, two copies of the .document creating such charge, variation or mortgage duly certified to be true copies by an employee of the bank authorised to s i p on its behalf. s strict ions 8. (1) Notwithstandiilg anything cantaified in o,n, creation any law for the time being in force, an agriculturist of t , e , nancy who has availed hjrnself of financial assisfane from cu~tucist a bank by creating a charge or mortgage on land or borrower. interest therein, shall not, long as the hancial SO assistance continues to be outstanding, lease out or create any tenancy rights on such land or interest without prior permission in writing of the bank. (2) Any lease granted or tenancy rights created in contravention of this zzction shaJl be void, ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS 9. Notllhg in ally law shall prevcllt in anyRemova10f manner a bank from causiilg any land, crop, movables bar to attach- ment and or any interest thereill chsrged or mortgaged to it saIc by z;7 by an agriculturist to seclx-c any f nancial assistance, Of to be attached and sold through a civil court and applying the proceeds of such sale towards all moneys due to it from t h t agriculturist including the costs and expenses as may be awarded by the court. 10. (1) An officer or" the State Government Rccovery of notified by them .as the prescribed authority for the b d a u n cs k t o h f r a o ugh c9 of this section may, on the application of a a prescribed and after such enquiry as he deems proper, make '' an order on any agriculturist or his heir or legal representative, directing the payment of any sum due to the bank on account of fmancial assistance availed of by the agriculturist, by the sale of any land or any interest therein upon which the payment of such money is charged or mortgaged: Provided that no order shall be made by the prescribed authority under this section unless the agriculturist -or the heir or legal representative of the agriculturist, as the case may be, has bee0 served with a .notice by the prescribed authority calling upon him to pay the amounts due. (2) Every order passed by the prescribed autho- rity under sub-section (I) shall be deemed to be a decree of a civil co1u.t and shall be executed in the same manner as a decree of such court. (3) Nothing in this section shall debar a bank from see& to enforce its rights in any other manner open to it under any other law for the time being in force. 11. (1) Notwithstanding anytltling contained in of a any law for the time being in force, a bank shall have Bank to power to itself,a cquire agriculhd land or interest ncquice and dispose of therein or any other immovable property which has immovable charged or mortgaged to it by an agriculturist PrQ~rtY. in respect of any financial assistallce availed of by LIIp, rovided the said Iand or interest thcrein cr any other .immovabie proye rty has bcen sought to bc sold hy public auctiorl and no person has ofrcrcd to pur- chase it ibr a prhiccw hich is sufficient to pay to the bank the money due to it. (2) A bank wfiicl-i zcquires land or interest therein or any o [her unmovable property in exercise of the power vested in it under sub-section (I), shall disposc it of by sale, within a period to be specified by the Statc Government in this behalf. (3) If the bank has to lease out any land acquired by it under sub-section (I), pending sale thereof as indicated in sub-section (2), the period of lease shall not excced one year at a time and thc lessee shaU not acquire any interest in that property, notwithstanding any provision to the contrary in any other law far the time being in force. I. (4) A sale by a bank of land or interest therein in terms of this section shall be subjcct to the provi- sions of any law in force which provides for restric- tions on purchase of land by non-agriculturists or by a person not belonging to a Scheduled Tribe or Scheduled Caste or for restrictions against fragmenta- tion of land or which provides for a ceiling on acquisition of land. Exemption 12, Nothing in any law for the time being in t r o m m ba n ra k t s r ic- force placing a ceiling or limit on the holding. of land shall apply to a bank acquiring land in terms,o f section o tai f cO l q a fiu n io d sni t i i n o n 11 and holding such land till such time the bank is in a position to sell the Iand in the manner provided in ceiling. that section or otherwise, at a price which is adequate to cover its dues. CUPrnR V FXNANClNG OF CO-OPERATIVE SOCTETIES BY BANKS 13. Notwithstanding anything contained in the Banks cEigi . , ,. . bie ro IYCCO~C O r j ~ C~o-oape rative Societies Act, 1962 or in any law O of r i 1 s 9 sa 6 3 A ct 2 a m c em o- b o e p r e r o a f - for the tinle being in force, it shall be lawful for a tiva society. bank to become a member of a Co-operative Society. Powcr of 14. Notwithst anding anything contained in the m-operativc Ori~~jSao- oper:rative Societies Act, 1962 it shall be orissj Acf z Smictics to , of 1963. borrow from la\vful for any CQ-operative Society to borrow from banks, a bank. .. .. . . . - - - * 15. (1) A bank shall have the right to inspect the rnspcc~ion of books books of any co-operative society which has either ,fmapcra- applied to the bank for fi~~a~lciaasls istance or is tlvc SOC~C~P indebtod to the bank on account of financial as-s is- by a bank. tance granted earlier. (2) The inspection nlay be carried out by an officer or any other ~nembcro f the paid staff of the bank with the previous satlction in writing of the Registrar of Co-operative Societies. (3) The oEcer or ahy other member of the paid staff of the bank undertaking such ins- pection, shall, at all reasonable times, have access, to the books of accounts, documents, securities, cash and other properties belonging to or in the custody of the Co-oprative Society inspected by him, and shall also be supplied by such society, such information, -statements and returns as may be required by him to assess the financial condition of the society and the safety of financial assistance to be made to the society or already made to it. 16. (1) Notwithstanding anything contained in Disputes any other jaw for the time being in force, any dispute b bm etw k e,ean aa , touchb the constitution, managemeflt or thecOa~eratlve business of a co-operative society, between a bank society. financing a co-operative society and the co-operative society so financed, other than disputes regarding the disciplinary action taken by the society or its committee against a paid employee of the society shall be referred by either of the parties to the dispute to the Registrar of Co-operative Societies for decision. (2) Where any question arises whether, for purposes of the foregoing sub-section, a matter referred to for decision is a dispute or not, the question shall be decided by the Registrar of Co-opera- . , . tive Societies whose decision thereon shalI be final. ' . 2:l;z.nl 17. (1) If the Registri? of Co-operati ve Societies of js satisfied that any matter referred to him or brought to his notice is a dispute within the meaning of section 16, he shall decide the dispute himself or refer it for diposal to a nominee or a Board of nominees appointed by him. (2) VJhere any dispute is I-eferred under sub- section (I) for dccisjon to the ilorninsc or Board of nominees, the Registrar may, at any time, for reasons to be recorded in writing, withdraw such dispute from his nominee or- Board of nominees and may decide the dispute himself or refer it for decision to any other nominee of Eoard of nominees appointed by hin-t. (3) Notwithstandins anything contained in section 16, the Registrar may, if he thinks fit, suspend the proceedings in regard to any dispute if the question at issue between a co-operative society and a bank is one involviflg complicated questions of law and fact,. until the question has been tried by a regular sult rfistituted by one of the parties to the dispute and if any such suit is not institued, within two months from the order of the Registrar suspending the procee- dings, the Registrar shall take action as is provided in sub-section (1). P rmedure I8 The Registrar of Co-operative Societies for hwring or his nominee or Board of nominees hearing a dispute under section 17 shall, as far as practicable, decide the dispute in the manner provided in the Orissa Co-operative Societies Act, 1962 and the rules Odssn rn 2 of 199 bade thereunder. Djcisiion Of 19. (1) When a dispute is referred for decision, Registrar or his nominee the Registrar or his nominee or the Board of orBonrd of nominees may, after giving a reasonable opportu- nomlncrs. nity to the parties to the dispute to be heard, make an award on the dispute, on the expenses incurred by the parties to the dispute in connection with the proceedings, on' fees and on the expenses payable to the Registrar or his nominee or, as the case may be, the Board of nominees. (2) Any such award shall not be invalid merely on the ground that it was made after the expiry of the period fixed for deciding the dispute and shall, OrAact 2 subject to appeal, review or revision as provided of 1963. under the Orissa Co-operative Societies Act, 1962, be binding on the parties to the dispute. 20. Every award made under section 19, shall, moncy if not carried out, on a certificate signed by the o..f ardcd . Registrar ,be deemed to be a decree of a Civil Court and' shall be executcd in the same manner as a d.eczr@ of such court. 21. (1) If a co-operative society is unable to P,o,we rs of a pay its debts to a bank from which it has borrowed, Bank to pra- by reason of its members defaulting in the payment dmccfmaublctirnsb o f of' the-moneys due by then, the bank may direct the, Co-opera< comrn$tee of such society to procecd against such tivc Bdcty. Orirsl 2 members by taking action under the Orissa Co- of 1963. operative Societies Act, 1962. (2) If the committee of the co-operative society fails to proceed against its defaulting mnen~bcssw ithin a period of ninety days from the date of receipt of such direction from the bank, the bahk itself may proceed against* snch defaulting members in which event, the provisions of the said Act- and the rules and bye-laws made thereunder shall apply as if all references to the society or its committee in the said Act, rules and bye-laws were references to the bask. (3) Where a bank has obtained a decree or award against a co-operative society indebted to it, the bank may proceed to recover such moneys firstly from the assets of the co-operative society and secondly from the rnernbel-s of the co-operative society to the extent of their debts due to the society. 22. The Registrar of Co-operative Societies I ag An :u dt i , z PdSF C- I ,s hall draw the attention of the bank financing a, co-operative society to the defects noticed in every repqrt? of of 1963. audit or inquiry or inspection of such society b SO , a c d ~t a i b eS lSOc conducted under the provisions of the Orissa Co- to banks. operative Societies Act, 1962, and shall also supply a copy each of such audit, inquiry or inspection report if demanded, in writing, by the bank. CHAPTER VI MISCELLANEOUS 23. Nofhin~in any law for the time being in Exemption force relating ?o money lending or agricultu&ts 9 f t r io o n m s r le e g l i a s e la n - s debt relief shall apply to the financial assistance to money availed of by all agriculturist from a bank. laegnrdicinuglt uanrids ts debs relief. 24. (1) Notwithstanding anything contained in ~ortgagcs any law for the t irne beitlg in force, mortgages executed eMxoacnuatgeedr s by after the commencement of this Act by the manager orjoint of a joint Hindu family favour of a bank for secu- Hindu ring financial assistance for an agricultural purpose shall be binding on every member of such joint Hindu family. 824 THEO RISSAA GRICULTURCARLE DIOTP ERAT~ONASN D [Or. Act (Sacs. 25-26) (2) Where a mortgage executed in favour of a bank is caIIed in question on the ground that it was executed by the manager of a joint Hindu family for a purpose not binding on the members (whether such members have attained maiorjtv or not1 thereof. the burden of proving the samezshafl lie on ihe party alleging it. 25. Section 8 of the Hindu Minority and Modified application Guardianship Act, 1956, shall apply to mortgages 2 ,r 1956 of section 3 2 8 in favour of a bank subject to the modification that or 1956. reference to the court therein shall be construed as reference to the Collector or his nominee and the appeal against the order of the Collector or his nominee shall Iie to the Revenue Divisional Commis- sioner having jurisdiction. 26, The State Government may, by notification, Power of make rules to provide for all or any of the matters Statc Government for which provision is necessary or expedient for the to rnakc purpozs of giving eff'cct to the provisions of this Act. Declaration under section 4 (1) .......................................... ................... I, aged .years ............................. residing at. being.desirous of availing myself of financial ..................... assistance from the.. .Bank, make this declaration as required by section 4 (1) of the Orissa Agricultural Clredit Operations and MisceIlaneous Provisions (Banks) Act, 1975, that I. ............................ .ownlhave interest as a tcnant in the land specifieg below, and I hereby create a charge on the said landlinterest in land in favour of the bank for securing the financial assistance which the bank may make and for all future assistance, if any, which the bank may make to me together with interest and costs and expenses thereon. -I. I Survey No. Boundaries Namc of Name of Name of City Survey No. Village Tafiasil District SEoaustth - WNe~st th- 1 H"issa ' -- 7 . 1 1 I 4 I I i -- I Area Assessment Encumbrances, if any ApproximateI Remarks, value I if any I Acres Rupees 1 Paise Nature Amount I I 826 M-ORISSAA GRICULTURCARLE DIOTP ERATIONASN D [Or. Act) 43 of 1975 (Sch. con td.) In witness whereof, I, Shri.. .................. ,. ..... ..hcreunde set my hand this. ...................... .day of. .................. .in the year onc thousand nine hundred and.. ............................ Witnesses Signed and delivered by the above-named in the presence of t . (1) Attested by Forwarded to the Sub-Registrar with a request to rctain a copy of thc document in ...................... his ofice and recofd the particulars of the charge.. created in the property of the executant. . . .. ................................. ... Bank Place .. ............................ Copy to ManagerlAgent , .Bank. The cha rge crcated under the declaration is duly recorded and a copy witb necessary endorsmeut is : returned herewith. ! Sub-Regis trar