The Tamil Nadu Co-Operative Land Development Banks Act, 1934

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 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. I934 :T .N, Act X] &operative LMd Development Banks TH& W I LN ADV CGOPERATIVE LAND DEVELOPMENT BANKS ACT, 1934, TABLE OF CONTENTS. PREAMBLE(.O mitted.) CHAPTERI- PRELIMINARY. 3. Definitions. CHAPTERI- A-LAND DEVELOPMBEANNTKS , BOARDA ND 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. CHAPTERII- 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. 934: T.N. Act X - - CHAPTER' III+D~snumr S ,OF PRODUCE SE~ONS. 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'ERJ V-POWER OF SALE. 13. Power cf sale R hcn to be exercised. c 14. 4pplication fcr sale anti manner of sale. t 15. Applicati~nt o set :s ide 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 puc~l1 '~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 to oc i:~ipeachedo n 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~nenrB unk. 23. Power of State Government to make rulcs, CHAPTEVR - - J VN~F~~US.~ ~ ~ ~ ~ 23-A,M ortgages execpted in ,favour of primary. ' ? Y i t . l I a ;s . 1 r 1 sc 4 t d . . D a . y a ' v d . o o l. p v m p.m w ' . . u t n b ' t , n : ' B n .' k ~ , , n '. k . e , . t c ' ., to s , h , n I a ' d v i " e .! s t . e d L. j n . S . . t ' . a . te *:'+** r.&' ,';w .* 1934 :T .N. Act XJ Co-operadive Land 421 Development .Bmks SECIIONS, 24. Power of primary land development baa 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 of cncunibranccs. 29. Right of primary land tlevclopmcnr hank to pay prior debts of mortgagor. 2%~.P ower 10 sllnlinon witnesses ?n(f rcqu isit ion 1 1 //I documents. ; 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~naryl and dcvcl~)pme111b ank lo receilvc moneys and grant valid tlischarges notwith- standing nssign:nent of mostgagc tlezd~t o L hc Sla tc Lm~dD cvclopmei~t'n ank. 33. Special provi4on R)r mortgage, cxccutcd by 111anngcl.s of joiltt Hindu fitlniliec, knn~sv:ins or Maru- makkattaynm tarwatlc or tnvnzl~is of Nalnbudri 0;. 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. -y*w :7- . fa. as 422 (=aspdratiue la934 : Act rf Development Banks S3!crlo1s. 36. Officers of primary land development bariks and of the State L~ndD evelopment 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. .--..<.. .. '*... ..... .. .... "*..*.. . *A* *A .A. <,&,.*....., A.4...&.+ +"< & a L - ' J . - P , P * W . . a 4 8 & . + ~ ~ U 'FAMIL NADU] Am NO. X OF 1934s. [THE~ [TAWNLA DUC O-OPERATIVLAEN D DEVELOP. MENT BANESA CT], 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 fist 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 of Tamil Nadu]. These words were substituted for the word " Madras" by the 1 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 ~strictb y section 3 of, and the Schedule to, the Tamil Nadu (Transferred Territory) Extension of ~awAsc t, 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 e !t 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). Theso words were substituted for the words '* Land Mortgage 4 Banks " by section 2 (I), Ibid. " r This expression was .substituted for the expression of Madras9*b y tho Tam11 Nad* Adaptation of Laws O=r which was dccmod to have come mto force on the 14th JanuarylP69. * The preamble was omitted b section 2 (2) of tho Tad Nadp Cwperat~vLea nd Mortgage Bad (Amendment) Act, 1969 (J'd Nadu Act 14 of 1969). I 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- 'Board' means the Boarcl of Directors of the ((1) s(Srate Land Dcvclopmcnt Bank); '[(b)' Stxtc Lanci Dcvelc,pmcnt Bank' means the .6Tamli Nadu Co-opcmr i~ l: State Ln~ldD evelopment Bank, Lilnlted";] (c) 'commitlec' means in relation to the L[r:inin~! In~~cdl c\clopmcnt bank], the Board of L)lrcci(>~.\o , Boarcl of Miinag~rncnto r [he pnchayat or the commit lcc: of nl:rl~ngenicnto r thc governing body lo \.+?-,om1 11c~ nanag(:niclol(f its affairc IS entrusted ; __. - - -_- - I Thc wo,i(s'T,\ri~N~li ulu' w1.e suhsttt~~tcdfIolirc word 'Madras' ,II the sIis)l t t~t'eb y thc l"t1111l NClduA dni~tdtlono f Laws Order, 1069, nmcndcd hy the T.irnll Nddu Adaptallon of Law3 (Second \rncndn1cnl) Occlcr, 1969, <rltd thc\c words wcrc subst~tutcdfo r the aol di " l',~~nNtl. itlu CO-O~C~~LLan~dI MVoLrt'g age Banks Act" by \c.ctci,n 2 (3) ol thc'rnm~l N,ltlu Co-operative L,cirici Mortgage Banks (,\mcntlmc~l~h)u t, 1969 (T.lrn11 Nadrr Act 14 of 1969). Th15c \ple\slon was sr~b\titiltcdf or the cxp~ession Presidency " of iMadr,r\" by ll~eT am11 N:rdtr AGaptatron of Laws Order, 1970, which w,i\ tlcc~ncdt o have come Into force on the 14th January 1969. Tills exprcsstvn was ~uhst~ti~ftoerd the expression " Central 4 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~IcSxp rcssion was substituted for the axpressio~'* mortgage, 2 bank " by section 4, ibid. 6r(Jf) small farmcr ' meanc a person o~ ning or ;I c~lltivatingo: nc hcctnrc of Innti or Ice\ (g) ' T~~rst'e c mcnnc thc T1.ustcc 1.cfci rctl to in scct ion 5. I - - -- 1 Thi$ clause was substit~ltcdf or the original el:~use(c/)b y scctlon 3(2) of thcTarnil Nadu Co-opcr,rtiveLand Mortgage Ranks (Anlcntl- ment) Act, 1969 (Tan111N atlu 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- 3(3) of the Tamil Nadu Co-operative Land Mortgage Banks (Amend- tb ment)Act, 1969(Tmll Nadu Act 14of 1969). 1 8 Thb clause was inserted by section 3(4), ibid. \ I . ~ , ~ ~ * ~ ~ - b " * ~ - **i.--** f & q<,T ,, d* - -7 1 2 'y:4, .aT''* a TA. x d [19& : Act '[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 (2) On and from the date of the commencement banLs. 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 expiry of their existing term of office. I (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). 1934 : f 'd.A ct XI 60- P 0 e rative ~rmd 45j 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 shall I 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 of ~ ~ ~ ~ ' " ' 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-operativeL and Development Banks (Amendment) Act, 1970 (Tarn11N adu 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. T" I ' pr'.- Wi' . ; '. , . % ' - $ Ceoperative tand ~1934T: .N. Act X Development Banks a . utilisation of the amounts guaranteed by the State Government, for reducing the overdues of the bank, i for impro~in g the efficiencyo f the administration of .F , . the oank, or f'or such other purpose as the State Governmen: may, by general or'special order, specify: I 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 FUC~q llalifications and exercise sucll powers and perform such fi~nctionsa s inay be prescribeci. Purposes for which 3-D. Thc loans uhich nlay beganted by a prilnar~l loan may be land devc1op:ncnt bank i.r the State Lana Dcvelopnlzot granted. Bank sha 11 ra!a te to such purposes per.t?ininzt o develop- ment of land as may bc prescribed. Agency of other 3-E. Th: State Lanil Development Bank or any Co-operative pri mary la11L1 clevelop~n~nbia nk nlay f~ulctiona c rhe Banks. ngcqt ol'nn! GO-opcrarhc hank st~bjcctl o sxch condi- tions as 111~. R cgictr-ar ma). hy gcne~x 0 l 1 . special or{!ci., specify. 3-F. Tllc Shtc Go\c!-ri~iicnm~n y rnaic jules not Power to mxke rules i~lcn~lcis\cn,.!v ith this ('kaptcr- (i) fo; rill: n1;rnhcr of 1ncm13e1.tso bc clcctcd ant1 rlo~ninatctl1 0 th:: Roaid ant1 their term of oflcc ; (ii) Tor rhc lnanlizr of clection and nomination of rn,:lnhcru to thc Ronr'd ant1 their u.mo~al; - (iii) <,,It-h e election<) office-bearerst o 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 1934 : T.N. Act X] Co-operative Land 423 Development Banks CHAPTER '11. j Debcntutrs. t 4. (1) ((I) With thc p .evious sanction of the~ssueo f Trustee, tbe Board inay issue debenturesofoneor rnore debentures denominations for such peJods nr it lnay deem ex- & by ,r d th . e psdier~to n the security of the mortgages and other assets tran3feired '[or deemed under thc provisions of aectio~2i 3-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 ;wed by the Board (~ncluding thaw ~SFLLC 1 ~ 3: 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~t,r ansfcrrea 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~ndh4 ortgage Banks (Amcndmcnt) Act, 1950 (Madras Act IX of 1950). 3 This ~~~)ressiwoaisl si~bititi~tefdor tllc exprc\sion " nlortg'Lge h.rnks" by wction 4 of theTamil Nadu Co-operative Land Mortgage . itanks (Amendment)A&t,1 969(Til.1nilNaduA ct 14of 1969). aThis expression was substituted for thc expression "Central Mortgage Bank" by ibid. 4 This W,LV s~tbititutedfo r the w~l.di" thc total amount duc on the mortgages, ihc amounts paid thereunder and remaining in the hands of the Board or of the Trustee at such time and the value of all other f - -- ---- - 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]. Appoint- 5. m e R egistrar, or where the '[State Govern- ment or Trustee ment] appoint any other person in this behalf such and his person, shall be the Trustee for the purpose of secu- powers and ring the fulfilment of the obligations of the YState functions. 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. Ouarantm 6. (1) The principal of, and interest on, the deben- by State Government tures issued under section 4 to such maximum amount of principal as may be fixed by the '[State Government] and su5- of, and ject to such co~rditions as they may think fit to interest on, debentures impose shall, subject to the provisions of sub-section issued under (3,c arry the guarantee of the '[State Government] section 4. - The words "Provincial Government " were substituted for the 1 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 ~ndM ortgage Blnks (Amendment) Act, 1969 (Tamil N~du~~ 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). (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 scl~tin 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~nO rder of ??37 dnd the word State was shtltuted for Provincial by the Adaptation Order of 1950. Cou a n T c h il e * s ' e b w y o th rd e s A w d e a r p e t a s t u io b n st i O tu rd te e d r o fo f r 1 t 9 h 3 e 7 . w ords " thc Leglslatlve a This word was substrtuted for the word " ChambersM by the Adaptation (Amendment) Order of 1950, 4 This word was subst~tutcdf or the word " Provincial by the Adaptation Ordcr'pf 1950. the 6 w T or h d e s yr L d o s c al P G r o o r v e i r n n c m ia e l n G t zve b r y n n th ie e n A t d"a p w ta e t r i e o n s O ub rd \t e it r u o te f d 1 9 f 3 o 7 r and the word " State ' was bubstituted for " Provincial " by the ..w ,. ." 4 Co-oprroria W [1934 : T.N-"ActX Devcloprnm Banks debentures issued prior to the date on, which such withdrawal, restriction or modification takes effecr. t 7. The '[State Government1 may, in their O s discretion, g:Iarhntee t3e principal cf, and the interest on, any dzbentures issued before the commznement before 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 Trustee, make regulations not inconsistent with tlie make regulations. provisims *of this Chapter- ~ f %inrg th c 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~it~~irne sp iacc of dzbent~rzsd 'un ~gcdor d:.lrnycd : (i~t)'o r converting OIIC class of debc~lturrsi llto another bwing a diffci.2:;; I .lit of in~c'rcsl; and (v) ge11cr~1IIyf 01- c~rryingo ut tlic provisions of Chap~~r. thib CHAPTEll l JI. L)~.slr~:iiz(,,t; xi .S(I/~cJf Pi.or/iic~~. Distrain1 9. (1) If ;lny iil taJnl:t~r paynblc u11dl:r :I mortgage m wh a e d n e . to be cxccutcd jq fd\ OUI of 1 I>11 m11.y I il~ld (Ii\~~loprnc~~t bank] or any p t r I or .u:i~ rr~jialn~thna~s rc-maincd illlp'iid for m )rc than orlc m 1t1t11 from 1112 d-itc 011 wllicll ~t fell dtic., the ci7nlmiltcc may, ill addrtion lo any otll:l- renl:cty availablz lo tllc b:lnk, ;lpply to tllc Rcg~strnro r 10 x!ty pct\,>11; ~ppoi~ltcbdy thc '[State Go\/?;n rn:llt] irlltl r .:c!,~.:l .> of the MatIra\ Co-c>pcr.a-h l,idras - - - - --- -- 1 The words " 1'1 ovrnc~alG ~ Ci\rIi~ cn"t ncrc c.t~l-rst~t~f~otrc dth e words " f;ociil Govc~.nmcnt" by tho Ad4iptationO rder 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~se xpression w n s~ub \r~tutctl for thc cxlirc\slon "rnortgct2c bank by wtion 4 of thc Tdrnrl N.rdu C~-O?CC.LLI~nV~CMd ortgage Banks (Amendfncnt) Act, 1969 (T,tnirl N~duA cl 14 of 1969). * See II& ,tlx famil Nadu Co-opcrcltivo Societies Act, 15-61 Tamil Nadu Act 53 of 19611, \ -------- - 1934 : T.N. Act XI Co-operatiue W Development Bunks / 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- Central standing anything contained in the Transfer of Pro- Act IV perty Act, 1882, take such action as is necessary to of 18SZ 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. 1 10. (1) Before or at the time when a distraint is Distraiut made under section 9, the distrainer shall serve or cause to be served upon the defaulter a written demand iII specifying the amount for which the distraint is madc. (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 of his family at his usual place of abode or to his autho- rized agent, or when such service cannot be effected, by affixinga copy of the demand on some conspicuous part of his 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. ' These words were ybstitutcd for the words " one anna *' by I a tio n 2 of. and the ~chdulleo , theTamil Nadu Coinage (4tqntipg I JRI aferancqn) Act, 1969 (Tamil Nadu Act 9 of 1960). 125 -149-24 I 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;~rgedf rom the proceed:, of the snlc. Powcr of State 12. The '1S:are Govctnmcnt] may makc ru!? ~:ot Govarnrnent to make rules ~ncoi~si*te \I n itt h this Chapter- (i) for thc manncr of cKecting di\traint ; (i i) ]'or 111~ci ~stody.p rcserv~ito n JII~ s fle of tllc distr:~inedp roperly ; - (i:i) fill the investig.tt ion of clnin~sb y persons otlicr than the d-faulter to anv right or iiltcrcst in tho ciistrained propcrty : iund fo~t.l lc po\(pnnc~ncnto f t h ~ sale pending such invest igation ; (iv) for tl~cim nicdi:ltc s;ile of pcrisliable articles; :11\d (v) gc~~cr,tllyfo ~t hc purpose of ci~rryingo ~11 tlie 1)rovi~ionso f this Chi~ptcr. CHAPTER IV. Polver c~fS kle. '7epealed by Central Act XLVIII of 1952. ------ -. .. -*;iir~itylrll.L4L*&~d~1, -*--k..aWu&+<i- -. -. . ?T '5 ' ' A a. *1*' * . A -r , . 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) ~zoticein writing requiring payment of such niorlgage money or part has been served upon- (i) the mortgagor or each of the morlgagors; (ii) any person who has any i~~tereisnt or charge 11po1t1h e 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 ;a nd (c) default has been made in payment of such mortgage money or part for three months after such service. t:",'$Fd 14. (1) In exercise of the powr of sale confcrrod by section 13, the committee of o '[primary land manner of development bank] or any person duly authorized by sale. yucll con~mitteem, ay 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 B*# anks (Amendment) Agt, 1969 Uamd Nadu 4ct 14 of 1969). 25-1 4-28~ '. b 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 in sale. apply to the committee of the I[primary land d d e is fa m u i l s t s o a r l o o f n devclop~iient bank] concerned to have the sale set SUOa~p pli- 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 ;a nd (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,*i t shall become absolute- 1934: T.N. Act X] Co-operatiye Land 437 Development Banks / 16. (1) The proceeds of every sale under this Distribution ti Chapter shall be applied by the sale officer, first in :::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. if 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 ' ~nea~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 of mortgagcd property has be- Certificate to come absolute, the sale officer shall grant a certificate ~""C"aFero specifyit~gth e 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 on 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 \ i?aoperatl~e Land dl934:T.N. ActX 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, tht 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~ficarei n 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 paon, oldc; delivery to be made by affixing a copy of the certificate of salt in some conspicuou5 place 011t he property ancl proclairning to the occupant by beat of drum or othcr customarj mods at sowe con~enisnpt lac;: 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~sionso t' rules 97 to 103 of Order SXI of the lir\t schedule to the Code of Civil 1 Procedurt.. 1908. cl1:111 ~nr~ftrtni\~ vtmiriia~n d so far as may bc. ,~pplj. E.~plrrritrrion.-111 this sectioti, Cni~r"t shall " have the \rime rneantlli: as in section 1 A. s This axpmrioa was substituted for the expression "~enlrdi Mortgage Bank" by ibid. ,193: T.N. Act XI Co-operative Land 439 i Developnzent Banks 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 property I C l or collect its produce and income, as the case may be, I to retain out of any money realized by him, his expen- 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) of section 69-A of the Transfer of Property Act, 1882, Central Act IV of 1882. (2) A receiver appointed under sub-section (I) may, for sufficient cause and on application made by i the mortgagor, be removed by the Board. (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 LLI\~sCec~t 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 ' ir $ np E ea d chd o r the gsoiinc\ tlmt no case had arisen to authorize the sale 01. \hat due nc3tice was not given or that tlre power imegula~ty, Wac, ntlacr~isicm properly or irregularly exercised but etc. ally person damni lied by an unauthorized or improper I 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 pllrroreofarnd~ctis~al~egs u nder tlrischaptcr. ~ ~ ~ ~ & a j d __- - - .- .-- offlc)r 1 1 This expression was Subqtit~tcdf or tho expression "mort- gagebank* by secti~n4o f thtr Tamil Nadu Co-operative Land ~ ~ ~ t g ~Bagnk,s, (A mendment) Act, 1969 (Tamil Nadu Act 14 of 1969). 1I . I 1 $*i eo-operative tmd [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~~cleirf. a ny, 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 of sale."] -- -- -- - - .- - - - - 1 This section wa? inserted by ~ection2 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~ionw as substituted for the expre5sion " Central Mortgage Bank " by ihid. T h ew ords ware substituted for the word " Madras" by the Tan~ilNaduA daptation 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 441 i Development Banks I 23. The '[State Government] may make rules not Power of / lriconsistent with this Chapter- State , Government (i) for the due proclamation and corlduct of thertuol emsa.k e 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]. *ve[Sstteadt ei Ln and 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 Mortgag-e Banks (Amendment) Act, 1950 (Madras Act TX of 1950). m s o xpreesioa was substituted for the axpression mortgage banJk " 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~oB ank by ibid. Co-operatfie Land [I934 ; T.N.' Act X Developinent Banks Powers of 24. Where any property mortgaged to a '[primary ' la [p nd r i d m e a v v s ' land development bank] is wholly or- partially des- 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~allb e entitled to take action against the n.~ortgagour nder 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 on 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<tee may direct the committee of a '[primary Inr~dd evelopment bank] to Board or of take action against a defiiulte~.v ~lders cction 9, section Trustee to direct 13 or sc:tio~\ %and if tlxc committee neglects or fails d sa is le t r o a f l nt and do 50, the Board '01. t l~cT rl~si~crnca y take such produce and ncticn. the sale of (2) (a) Wltcre sucl\ actlion is takcn by the Board, mortgaged property, t,\le provisions of this Act and of any rules or rcgula- cto. t~ionsm ade tjhereunder shall apply in respect t~hcreto as if all references to tl\\c '[primary land developmcnt~ bank] and tto it4sc ommi~tlecin the said provisions ere references to tll1e ?[Stlatle Land Developn~e~~t~ t\ Bank] and t~heB oard respect ivcly. (b) Where such act ion is laken by the Trustee, the provis'ons of this Acl*a nd of any r~ilcos r 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)A ct, 1969 (Tamil Nadu Act 14 of 1969). 8 This expression was suhstitutcd for the expression "Centrdl Mortgage Bank" by ibid. *... ,.*.. &... ..&' - ~ ~..--. u ~.'. . ~ w ~ w . . -L*,,db.~*+IYYLPW- L . 1934: T.N. Act XI Co-oPeratrve ~arld 433 Development Baltks I all references to the '[primary land development bank] /' or to itvsc ommittee in the said provisions were refer- ences to the Tri~stee. Central 26. Notwithstanding anything contained in the r;:;:f$fs ktIV Transfer of Property Act, 1882, the duration of any I lease executed by a mortgagor of property mortgaged I to a '[primary land development bank] after tile execu- I tion of the mortgage shall in no case exceed five years. 27. Notwithstanding anything contained in the Mortgaee Central P~esidcncyT own4 insolvency Act, 1969, or the Pro- n:'eogt $to-e bde vincinl Ia~olvencyA ct, 1920, a mortgage executed in central ravour of a '[primnry land development bank] shall 01. Act" IIO~b e called in cluestion on the ground that it was niortgaeor. of 1920' not c~c'c~~itnc dg ood faith for valuable consideratton ~r on the groiu~dth at was executed in orde~to give it tile '[primary land devclopnicnt bank] a pretere~~ce over rl~co ther cred~to~of, \ thc niortFagor. 28. '1(1)1 A rnortgngc e\c~ufedi n favour of a 2[Prio~ityo 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~itoyv er itny clattn cI.tirn\ I OS tllc (;OVCI.IIIIICaIrIiIs ing fro111 ;1 loan ititdcr ~IIC LntlLl Imp! o\enlc.~iL oans Ac!, 1 883. rrni\tccl aftcr . n r l , ,A,G~ XLX thc c\i-culion c.1 (lit 11io1t? ,lpc.. '[(3) W~tlio~l>~rtc j~i(l*cl.co thc piwvi\~ons ol' CLII>-\ l C t)l L l .( I). ,11l<I :I(II\\'!~I~\~:~I~cIIIIP iltt).1I1111~C OII- tllincd IIIt llc 4lTa111llN ~cl11Cl O-OI>CI-;LCI\CSAOcCt.I C~~C\ 1961 (41 r;~~nNil't dr~I Act 5.3 of 196 I) ot 111a rty other Inw for the tttne being in fo~.cc : , i ~iiortgagcc xccu-ted 1 c\pres\lon u.t\ aub~titu~cfdo r he cxprc\sion "mol tg ~gc bdllk h\ \CC~II~I4I 01 I~ICT ,IIIV~I~~d uCo -opc~~.cl!\ic . ~nd Morr- g.lge H31ih\ (~\rnend~iienAr)c t. 1000 (7',lrnil Nadu Act 14 of 196')) Scc.110112 8 ren~l~libere.iISl aub-wction (1) or tl~ntx ction and 1111. ~n.irginalh e.ld~ng\ \.ah \~th~t~ttttbcyc lr e~llon3 (a) of the 'r,rn~ilN $~tliCt 'o-oper,lti\ J I and hlnrtg.\gc H,~nk\( Amendment) Act, 1968 ( T,tni~lN adu Act 17 01' 11)6S) 8 Tlu, \tth.scct~on\ \,I\ i~ddacib y \cctiotl 3 (h), rhrd. 4 Tllc,a words were \tibsliti~tedA )r the word " Madras" by the Tan~llN .idu Adapt;ttion of Law\ Order, 10hl), a\ .~nicndedb y the TaniiI N,~duA daptntion 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 29. Where a mortgage is executed in favour of ;primary a '[primary land development bank] for payment of ;sddwe- ~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 AGI~V receive payment of such debt or part thereof from of 1~37. 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~d ebt 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, tl~pce rson to wlto~ns uch debt is due shall bc bound to receive payment of the -. - - - -- - - - -- - -- 1 This axpression w ~\\~~ hstitutefdo l* 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) ~ct, 1935 (Madras Act XVIt or 1935). 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 ~rcjudicet he right, if any, of such person, to recover the balance claimed by him. I *!2 9-A. (I) Subject to such restrictiqns, limita- s F u ew m er e t n o tions and conditions as may be prescribed, the Registrar ;w:ittneusse,s" tion and persons subordinate to the Registrar who are authorized by him in this behalf by general or special documents. ortlcr in writing, and such other persons, being ofEcials engaged in the relief of rural indebtedness or officers I of co-operative banks which are registered or deemed , tM;3a'2dFra s to he registered under the Madras Co-operative i Of ~ocicite s Act. 1932'. as the '(State) Government m;lY, by notification in the Fort St. George G~zette I :tl~tt~orizine this behalf, shall have the same powers I Central ;is ;rrc vested in a Court under the Code of Civil Pro- $ f: of ~~tlt~1r9e08,. when trying a suit, in respect of the fi)llo~vi~m~agtt ers, namely: - I (n) enforcing the attendance of any person and cx;~~~linhiinmg o n 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 t~~~stuleb-rs ection (I) may require any person present ,>I. h~.I'o~I.tri:m 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 " bv 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- ti\o ~,t\ndM ortgage Banks (Amendment) Act, 1939 (Madras Act x~lllo f 1939). 8 ,n\lq word was substituted for the word "Provincial" by th4 ~daptationO rder of 1950. * ,Vow see tho Tamil Nadu Co-opera tiva Societies A<t, 1961 flanril Nadu Act 53 of 1961). 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)s hall 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~ayb e. (4) A-1: person who \vilfillly or witbovt ((1) re;lsonabie excilsc di4ob:y.; any summons, requisilion or order i,\tlcd i~nclers ub-sesrior: (I) or sub-sect~on( 2), shall b-. put>lsn:lble \\ith fil~i.~ vhichm ay extend to fifty rupcec and in the casc of n col~tinuing disobe- dience with a,, additinnal tint. \vhich may extend to file siipec\ fc~erv ery day dui-ing which such disobe- ~~CIICcC > ntit~tr(.:sif te:. con! iction for the last such cli~nhctfiencc. (h) No Cottlt ivfel lor to that of :! *Presidency Magi$tl.:!tc n :-ML~gicrloo~f ct he fissr class sllall (31. 11 Y ally offcncc 1111tlecr lauw ((1). ((l) No ~>,.osccutionsh ill bc itlstituted under cl,llt<c witho~!tt he prc\io~lss anctioll- (0) (i) oI' the Rzgis!rnr in caee the summons, rccl~\i,itio~-otr ordcr allegcd to have lxen disobeyed 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 ---------- - --.---.-*l.*.......*.~."..* .,. . .. * - - ~ - - - - ~ ' , * ' * , L ', ..,... -. __ . 1. . -- 1934 i T.N. ~ cXIt 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, it shall not be neces- exccufed on p$;s;l"rC;and of ,908. sary for any Director, Secretary or other officer of a *[primary land development bank] or of the .[State ~,,,op~,,n, Land Development Bank] to appear in persorl or by ~ban~k] o;r ~of ,th~e ~::~, agent at any registration office in any proceeding con- llected with the registration of any j~~strumenetx ecu- 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~tiotlm ay, 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 excl\ 'c.d I'o\vCt CI in favour of a z[p:im;iry land devclopmc~lt bank 1 h s t 2 lo [ v p cl, r ,p ~ m ~ Ln ~ iI,Cu. l!d been Irai~sferrecln, r is d(1~rnedu lldr~r t11e ],rovl>lc>n bdnh]to I~LCI\~ of section 23-A to have been tmnsferrcd, to 1h e '(Stn~c "I ::iyy:;,'{:: Land D,-velopmalt Bank)]- d,. go (a) all moIwys due imder the mortgage sh'dl, ~n a n \ o v t\ g $ , l. I , I \I n ~ ~ ~ ~ , I r I I I I tl~ea bscocc of any spcc~ficd irection to tlic contr;lry ;;;;~a~;s;lLl~ is-s-u-e d by thc Board or Trustce and communicated to D,,,;,,,,, -- - - - - - - .- - lncnt Bank]. 3 Tllis word was substituted for the uord " Plo\rnci 11 " I,y tho ~\da~t,~fOiordne r of 1970 8 TIIIS Oxpresslon wJs stlbstltutcd for the. euplc\s!on " rlcol tgdgr, b.lnl\ " by swtton 4 of the Tslmiil Nadu Co-opcia~tvcL antl Molt- gage B~nk(sA mendmenr)Act, 1969 (Tarn11 Nadu AGI 14 (,( 1060). 8 This exprenqion way ~ubstltulcdf or the cxpre5,ltrn " Ccnlral Mortgage Rank" by chid r T~lisevpresbionw .15 tubvtitulrd fcr thc wortls " Nt,~wt~h~t,ind- iny tile tranqfer ?,fa mortgage by :I mortgage b'ttlk to tilo CLlllrdl Mortyago Bank by ser;tlOn 5 of the Mddras Co-operal~veL dnd Mortgage Banks (~menamtnt)A ct, 1950 (Madras Act IX of 1350). \ 1 - 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 th~eco~eorf yth e 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,~o r Ezhava family, or the eja~nano r 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~ttudi n favour of a l[primary I:\11d developlnent bank] by the manager of a joint Hindu family or the karn:~vano f a Martimakkattayar~l tarwad or tavtizhi or of a Nnmbudri illom or the mana- ger of a Thiyya or Ezhavi~f amily or the ejamar~o r ;jamanthi of an Aliyasantni~af amily 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.] -- ban 1 k T " h b is e s x e p ct r i e o s n s i 4 o n o f w t a h s e s T u a b m st i i l t u N t a e d d u f u C r o t - j o le p e e r x a p t r iv es e s L io a n n d " M m o o r r t t g g a a g g e e Banks (kndrncnt) 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). I 11 1934 :T .N. Act X] Co-operative tand 449 Development Battks 1 2[32-B.A ny '[primary land development bank] or d P o ro cu o m f o en f t , 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~lrposei n the sanlc manner and to th e ; s : am :: e a7nd IV to extent 3s the original C~OCLIMPI~o~,r the entries therein, as the cnse may be.] advanced by &[primaryl and dcvciopment 33. The provisio!~o~f Chipters 111 and I\' sh:!ll banks] from apply also to the loans advanced by '[primary land ~fu~n~d~s ~n~ot'f ~~~d / Development blnksj from f ~ ~ ~wthdicsh have not been borrotved from the 4[S!ate Land Development Bank]. Dcvelopnlent , Bank]. Service of 34. Whenever itndel. the procisiv~lso f this Act notice is required to be given to :my persol1 in writing, under 1110 Act, it sh:~ll be sufficient to send si~clln otice by ~.cgistorcd post. * Suction% 102, 103 and 104 of the Transfer Central 35. T11:: provi\io~lso f secrions 101 31;cl 103 01' the of property~ct, 1V Tra~~cfuef ~P.r operty Act, 1883, and of any rulcl madc 1882 to apply or lf87. by thc t4illll Cou~t iindcr stction 10.1 of Illat Aci for 1L1os ~Lt1icc"c ~. carr)lin? out of tile I)LIrpobch 01' 111~\ ,LI~ wctio~ls shall ;~ppI!'. so Lir :i., ,,;,LY bLs. in I-C~PCC! "I' ;\!I 1:otices to t7c SCIL CC~C IIIC~~t\JSl i4 Act. Srclialn ZZ-A wl~iciiw as itissrrcd l~.y;c ctia,n 7 (lf thc Madras C>,- opcrativc l.;tnd Mortgigc 13;inh\ (,\~n~:~itl~nAenctt,) I9.;0 (Madras Act I>; {%IIO' .-aO) was milled by cl;~c~s3c O BI', :rnd tlic Schcdulc t~!,t llc Madlxs X~l;,l>tutio0n1 ' Liiws Ordcr, lL):>7. * 'flli.: .;ccti~bnw i~iin wrled by x~ctivri2 i~tfh e Mitdras Co-opcr:i- tive L:iti~ih lt,~.tg:tgc1 3.1nhs (SccontL Anlcnclmcnt) Act, l%'O (Madla3 Act XSll of lt)nA~O). "his c.spre.;ri,~\\i.:~is sttbititi~tr~Tdor ~ h ci'r p~'cssion " mtrrtyayc bank bv section 4 of the Till~~Nili ~tluC 'tj-'iperativc Land Mort- " gage Banks(Arncn~11n~An1c)t, 1969 (Tamil Na.Ju Act 14 (IT 1969). 4 'l'liis csl,rc.;si(~n was substittrtctl 1;lr thc cxpressic~n " Central Mo r~g:igcH ank " by ihitl. This e~pression\\ ,as su bstitirtefl for the expression " nlort- gape ball ks " by ihid. 125-1629 4% CO-operative and ' f1934 : ?.N. Act X / Development Banks 36. At any sale of movable or immovable property Officers of iIprimary land held under the provisions of this Act in order to re- dtvelopnlent cover any money due to a 3[primary land develop- $ ~ ~ ~ , " ~ : nmden t 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. '[36-A. On and from the date of the commence, Vating of asjets 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, if 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~nitteec onstituted by it and consisting of two or more of its mcmbers. Power of B~~~~ 38. Notwitl~s[anding :lnything co~~tainedin the Madras to make resu- Mntlrr!i Co-operxtrve Socrclics Act, 1939*. or the rules a ,, Iitions. nindc therc~u~tl~t*hcr , Board \hall h:l\'e a general of 1932 po\vi.r of ~upcr\~lstoonvc r the '[primary 1;111d develop- nle11t banks] and may mil kc regular ions not incon- si\tent wit11 (Ilia Act or tl~c~ LIILm.~ad c thcreunder- (a) for Olc inspection of the accoilnt books and psoccedir~g\o f prim:^^-y I:l~ldd evclopmcut banks] ; -- _ -- ----- - --- U-I ..-I ___I___ _^ Th.t cu:>rc,\iun wa\ suhstit~~tefd*) r the expression " nlortgagc banks" by scctr~~4t lo f thc'r,~m~Nld u Ct~-tlper;\fr\.Lc and Mortgnyc Ud~iks( Arnendtllcllt) Act, 1969 (Tarnil Nadir Act 14 of 1969). 'This exprc,.;i,jn was S L I ~ ~ ~ ~f4~)r ItIheI Cex~p ression "Central Mljrtgage Rat~k''b y ihld. This expie,.;it,n was substituted for 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). . ' b 1" ' " ~-.L----.. ', 1934 i T.N. Act $1 Co-operatlye tand 441 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 payment i I 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 transferred] to the '[State Land Development Bank]; I (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 I as security for such loans ; I (e) for the investment of moneys realized from the ~nortgagor;s 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 Pguuibelsi,c caotironn- 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~ionw as substituted for the expression "Central Mortgage Dank by ibid. These words, figures and letter were inserted by section 8 of the 8 Madras Co-operative Land Mortgage Banks (Amendment) Act, 1960 (Madras Act IX of 1960). I 4 Sections 38-A, 38-R and 3 8 4 were added by section 7 of the Tamit Nadu Co-operative Land Mortgage Banks (Amendment) Act, 1969 (Tamil Nadu Act 14 of 1969). 125-14-29~ I I . . h", I, 452 ~wperativLea na [I934 :T . N.A ct 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 effecto nly 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 ~didityo f anything previously done under that rule.] Construction ' 3S-3. Referelices to a " Central Mortgage Bank " and .'tnoitp~b~an k" in any law or instrument for ~ , ' f , ~ ~ ~ : ~ Mortg~g- the ~',nebe ~ilgi i~f0 i.c~i :~ti us State, shall with effcct BIII~" on an-1 from the date of the conlmencelnent of the and amortgzge Am:ngment Act, be construed as references to the bank". " S~zreL and Development Bank " and " primary land development bank respectively. " Aot to 38-C.The :~rovisions of this Act shall have effect override I 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 (Tam11N adu Act 14 of 1969). "These wo rdu were substituted for the word " Madras " by the Tam1 Nadu Ad~ptaiiono f 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 adn other IUW by section 4 of the Tamil N~duC o-operative Lan Development Banks (Amendment) Act, 1970 (Tamil Nadu Act 4 of 1970). 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~ A 99'5 ~agerativLea nd berelop b t [U79 :T. W. Act 35 ' Banks (Amendment) 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 p urposes 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, treemps and garden pro- d~=),s eed farm~nga nd 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 ~~c t~ f,or , the O wor f ds " 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