VE BANKChapter: XI - AGRICULTURE AND RURAL DEVELOPMENT BANKS

The Maharashtra Cooperative Societies Act 1960

Chapter: XI - AGRICULTURE AND RURAL DEVELOPMENT BANKS

Section 111 to 144

Footnote:
1. These words were substituted for the words "a Land Development Banks" by Mah. 10 of 1988, s. 19.

The provisions of Section 111 to 144-1A shall not apply to the housing societies As per Amendment in MCS Act dtd 09.03.2019

Section 111 - Application of Chapter XI of [Agriculture and Rural Development Banks]

This Chapter shall apply to--
(a) any co-operative bank or banks advancing loans other than short term loans, to or through the [Agriculture and Rural Development Bank], for the purposes herein enumerated (hereinafter referred to as"the [Agriculture and Rural Development Bank]"), namely:--
(i) agricultural or rural development;
(ii) purchase of, or acquisition of title to,agricultural lands by tenants, occupants and assignees under any law for the time being in force;
(iii) liquidation of Governmental, Institutional and other secured debts to agriculturists;
(iv) acquisition,construction, rebuilding or repairing of dwelling houses in rural area;

(b) any other society permitted by the Registrar under section 142 to function as a[Agriculture and Rural Development Bank.]
Explanation.--For the purposes of this section,--
(I)the expression"short term loan" means a loan for a duration of less than 18 months; and

(II) the expression "agricultural or rural development" means any work, construction or activity pertaining to agricultural and rural development which includes the following, that is to say:--
(i) construction and repairs of wells (including tube wells), tanks and other works for storage, supply or distribution of water for the purpose of agriculture, or for the consumption of human beings and cattle employed in agriculture,
(ii) making agricultural lands fit for cultivation,improvements of land including development of sources of irrigation,
(iii) renewal or reconstruction of any of the fore going works, or alterations therein or additions there to.
(iv)preparation of lands for irrigation including command area development.
(v) drainage to, and reclamation from, rivers or other waters, or protection from floods or erosion of other damage by water, of land,
(vi) bunding and similar improvements.
(vii) reclamation, clearance and enclosure orpermanent improvement of land for agricultural purposes.
(viii) horticulture,
(ix) purchase of tools, implements, machinery including oil engines, pumping sets, electric motors for any of the purposes mentioned here in,
(x) purchase of tractors or power tillers or any other agricultural machinery,
(xi) increase in productive capacity of agricultural ands,
(xii) construction, rebuilding or repairing of farmhouses, cattle-sheds and sheds for processing or repairing agriculture or cottage or village industrial products,
(xiii) purchase of machinery for processing of agricultural produce,
(xiv)purchase of lands for consolidation of holding under the relevant law for the time being In force,
(xv)animal husbandry, and dairy farming such as purchase of milch cattle, rearing of cross-breed female calves, cattle breeding, sheep and goat rearing, piggery,poultry farming and purchase of bullocks,
(xvi)plantation including tree crops,
(xvii) forestry,
(xviii) pisciculture including development of inland and marine fisheries, catching of fish and all activities connected there with or incidental thereto,
(xix) sericulture or apiculture,
(xx) marketing, storage including rural warehouses,godowns and cold storage and transport of agriculture, cottage and industrial products, acquisition of implements and machineries in connection with such activities including animal-driven carts.
(xxi) market yards for agricultural produce,
(xxii) bio-gas plants,
(xxiii) working capital or production credit to borrowers or investment credit,
(xxiv)setting up of cottage and village industries,
(xxv)purchase of shares in co-operative sugar factories or in any processing industry of agriculture produce.
(xxvi)social forestry,
(xxvii)such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be agricultural or rural development purposes, or
(xviii) all activities incidental to, or ancillary to, the above mentioned purposes.

Footnote:
1. This section was substituted for the original by Mah. 20 of 1986, s. 55.
2. This section was substituted for the original by Mah. 20 of 1986, s. 55.
3. Sub-clause (iv) was added by Mah. 5 of 1990, s. 3.

Section 112 - State and other Agriculture and Rural Development Banks

(1) There shall be a [State Agriculture and Rural Development Bank], for the State of Maharashtra. If considered necessary by the State Government in the public interest or in the interest of the co-operative movement, there may be one or more Primary Agriculture and Rural Development Banks; but nothing in this sub -section shall be taken to require the establishment or continuance of any Primary Agricultural and Rural Development Banks).

(2) A reference to Land Mortgage Bank or to a Land Development Bank in any law, or instrument, for the time being in force in the State, shall with effect from the commencement of this Act, be constructed as a reference to a [Agriculture and Rural Development Bank] within the meaning of this Chapter.

(3) With effect from the commencement of this Act, and until such time as the names of the Land Mortgage Bank [or of the Land Development Banks] and societies functioning in the State at the commencement of this Act are changed into [Agriculture and Rural Development Banks], all acts done by them or mortgages and other documents executed by them, or in their favour, and all suits and other proceedings filed by or against them shall be deemed to have been done executed or filed as the case may be, by or against them as [Agriculture and Rural Development Banks.]

Footnote:
1. These words were substituted for the words "State and other Land Development Banks" by Mah. 10 of 1988, s. 19.
2. Sub-section (1) was substituted by Mah. 43 of 1972, s. 3.
3. These words were substituted for the words "State Land Development Bank" by Mah.9.
4. These words were substituted for the words "Primary Development Bank" by Mah.10 of 1988, s. 19.
5. These words were inserted, by Mah. 10 of 1988, s. 20(a).
6. These words were substituted for the words "Land Development Banks", by Mah. 10. 19.
7. These words were inserted, by Mah. 10 of 1988, s. 20(b).

Section 112A - District Loan Committee, its term of office of delegates casual vacancies, powers of such committee, etc

(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the [State Agriculture and Rural Development Bank]
(a) There shall be a District Loan Committee for each District excluding the City of Bombay District and Bombay Suburban District.

(b) Every District Loan Committee shall consist of the following [* * *] that is to say,--
[(i) delegates to be elected one each from every taluka in district.]

[l(i-a) two members, one from the persons belonging to the scheduled castes or Scheduled Tribes and one from the persons belonging to the weaker section, [who shall be elected from the District;]

(ii) the District Deputy Registrar of Co-operative Societies of the concerned district, ex officio;

(iii) the Divisional Officer of the [State Agriculture and Rural Development Bank] of the concerned division, ex-officio;

(iv) the District Branch Manager of the [State Agriculture and Rural Development Bank] of the concerned district, ex-officio, who shall also act as the Secretary of the District Loan Committee.

[Provided that, in a district, where there are more than seven talukas and before the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1993, the elections to elect seven delegates on the District Loan Committee as provided by subclause (i), as it existed then, have already been held, the State Government shall nominate on such Committee, such additional number of delegates as may be necessary from the talukas from which no delegates are elected, so as to bring the total number of the delegates equal to the number of talukas in such district:

Provided further that, after having held the election as aforesaid, the two members to be nominated by the Registrar under sub-clause (i-a), as it existed then, have not yet been nominated by the Registrar, then the Registrar shall nominate such two members:
Provided also that, the term of office of all such nominated members shall be co-terminus with the term of office of the seven such delegates so elected:

Provided also that, at any election held after the commencement of the Maharashtra Cooperative Societies (Amendment) Act, 1993, any member of the State Agriculture and Rural Development Bank in the District belonging to the Scheduled Castes or Scheduled Tribes, or, as the case may be. weaker section, shall be eligible to contest such election;

[Explanation:-- For the purpose of sub-clause (i-a) the provision of clause (b), and of any order issued under clause (c) of the Explanation to section 73B shall apply in relation to the members to be elected thereunder.]

[(c) The delegates or members to be elected under sub-clauses (i) and (i-a) of clause (b) shall be elected by direct election, by the members of the State Agriculture and Rural Development Bank.

(d) Save as otherwise provided in this section, every election to elect delegates 11 [and members] shall be subject to the provisions of Chapter XI-A and shall be conducted in the manner laid down by or under that Chapter:

Provided that, reference to an election of a member of members of the Committee of a specified society in that Chapter or the rules made thereunder shall be deemed to be a reference to an election of (delegates or members referred to in clause (b)].

(2) Every District Loan Committee shall have a Chairman, who shall be elected by the [elected delegates and members thereof] from amongst themselves.

(3) Within fifteen days * from the date of election of the delegates [and the members under sub-section (1)] an officer authorised by the Collector in that behalf shall convene the first [meeting of the delegates and [* * *] members] for election of a Chairman. The officer so authorised shall preside over such meeting, but shall not have the right to vote.

(4) The term of office of members other than ex-officio members of a District Loan Committee shall be for a period of five years and shall be deemed to commence on the date of the first meeting referred to in sub-section (3) and the term of office of the Chairman shall be coterminous with the term of such members and on expiry of their term they shall be deemed to have vacated their offices.

(5) A causal vacancy of an elected [delegate, member] or Chairman occurring in the District Loan Committee due to any reason whatsoever shall be filled by election [* * *] as soon as may be practicable after the occurrence of the vacancy:

Provided that, if the vacancy occurs within four months preceding the date on which the term of [such delegate, or as the case may be, member] expires, the vacancy shall not, unless the Registrar otherwise directs, be filled:

Provided further that, [the delegate, member] or Chairman elected [* * *] to fill a vacancy shall hold office so long as[the delegate, member] or Chairman in whose place he is elected [* * *] would have held office, if the vacancy had not occurred.

(6) The District Loan Committee shall have the power to sanction by itself or to recommend for sanction by the committee of the [State Agriculture and Rural Development Bank], as the case may be, loans to such extent and for such purposes as the committee of the [State Agriculture and Rural Development Bank] may, from time to time, specify, and shall also perform such other functions as that committee may, from time to time entrust to it.

(7) The provision of sections 73-ID, 73A, 73-FF, 77A, 78, clauses (j) and (k) of section 146, (j) and (k) of section 147, sections 160A and 160B shall apply mutatis mutandis to the District Loan Committee as they apply in relation to a committee of a society.

Footnote:
1. Sections 112A. 112B 112C were inserted by Man. 10 of 1988, s. 19.
2. These words were substituted for the words "State Land Development Bank" by Mah.10 of 1988, s. 19.
3. These words "Twelve members were deleted by Mah. 13 of 1994, s. 10.
4. This sub-clause substituted by Mah. 13 of 1994, s. 10 (ii).
5. Sub-clause (i-a) was Inserted by Mah. 38 of 1986, s. 2(1)(b).
6. These words were substituted for the words "who shall be nominated by the Registrar" by Mah. 13 of 1994, s.10 (ii).
7. These words were substituted for the words "State Land Development Bank" by Mah.f 1988 s. 19.
8. These provison were added, by Mah. 13 of 1994, s. 10 (iv).
9. This Explanation was substituted by Mah. 13 of 1994, s. 10(v).
10. Clause (c) was substituted by Mah. 13 of 1994, s. 10(b).
11. These words were added by Mah. 13 of 1994, s. 10(c).
12. These words were substituted by Mah. 13 of 1994, s. 10(c)(ii).
13. These words were substituted by Mah. 13 of 1994, s. 10(2).
14. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
15. These words were substituted for the words "meeting of the delegates" by Mah. 38 of 1986, s. 2(3)(b).
16. The words "nominated" deleted by Mah. 13 of 1994, s. 10(4)(b).
17. These words were substituted for the words "member, nominated member" by Mah. 13 of 1994, s. 10(4)(a).
18. These words were substituted for the words "such member" by Mah. 13 of 1994, s.10(4)(c).
19. These words were substituted for the words "the member" by Mah. 13 of 1994, s.(4)(d).
20. These words "or a member nominated" deleted, by Mah. 13 of 1994, s. 10(4)(d).
21. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
22. These words were deleted by Mah. 13 of 1994.
23. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988. s. 19.
24. Sub-section (7) was added by Mah. 31 of 1990, s. 3

Section 112AA - Election of delegate as member of Agriculture and Rural Development Bank from City of Bombay District and Bombay Suburban District

(1) Notwithstanding anything contained in this Act or the rules made thereunder, the members of the Agriculture and Rural Development Bank from the City of Bombay District and Bombay Sub urban District shall elect one delegate from amongst themselves for every general body meeting of the members of the Bank.

(2) Subject to the provisions of section 14, the Agriculture and Rural Development Bank shall make bye-laws for the purpose of the election of a delegate under sub section (1).

(3) The power to make bye-laws conferred by sub-section (2) is subject to the condition of the bye-laws being made after previous approval of the Registrar.)

Footnote:
1. This section was inserted, by Mah. 10 of 1988, s. 21.

Section 112B - General Body and committee of State Agriculture and Rural Development Bank

(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the [State Agriculture and Rural Development Bank,--]
(a) The delegates [and members] elected in accordance with the provisions of clauses (c) and (d) of sub-section ( 1) of section 112 A[and sub -section (1) of section 112 AA]] shall, for the purposes of section 72, constitute the general body of members of the [State Agriculture and Rural Development Bank.]

(b) The committee of the [State Agriculture and Rural Development Bank] shall consist of the following members, namely:--
(i) the Chairmen of all the District Loan Committees;

(ii) [(A) two members, one each belonging to the Scheduled Castes or Scheduled Tribes and the weaker section, and

(B) three women members from amongst the members of the [State Agriculture and Rural Development Bank.] who shall be co-opted by the committee in its first meeting to be convened by the Collector or an officer authorised by him in that behalf but the Collector or such officer shall not, while presiding over such meeting, have a right of vote; and where there is failure of the committee to so co-opt such member or members, the Collector of the Officer authorised by him shall report such failure to the Registrar within a period of seven days from the date of such meeting and thereupon the Registrar shall, within a period of seven days from receipt of such report, appoint on the committee such member or members, as the case may be, from amongst persons entitled to be so co-opted;

Explanation.--For the purposes of this sub -clause, the provisions of clauses (b) and (c) of and any order issued under clause (c) of the Explanation to section 73B shall, apply in relation to the members to be co-opted or appointed under this clause;

(iii) the Chairman of the Maharashtra State Co-operative Bank (or his representative), ex-officio;

(iv) two representatives of the employees of the [State Agriculture and Rural Development Bank] to be selected by the recognised union or unions of employees, from amongst [such employees. Where there is no recognised union or unions or where there is no union at all, the employees shall elect representatives from amongst themselves.
The election shall be held by the Collector in the manner laid down in Chapter XI-A of this Act.]

(v) the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra State (or his representative), ex-officio;

(vi) an Officer from the Agriculture and Co-operation Department, who is holding the post of Officer on Special Duty or any other post not lower than that of a Deputy Secretary to Government, to be nominated by State Government, ex-officio;

(vii) the Managing Director of the [State Agriculture and Rural Development Bank] ex-officio, who shall also act as the secretary of the committee.

(2) The members referred to in sub-clause (i) of clause (b) of sub-section (1) shall cease to be members of the committee on the date of expiry of their term as Chairmen of the District Loan Committees and they shall be deemed to have vacated their offices and the term of office of the members referred to in sub-clauses (ii) and (iv) of clause (b) of sub-section (1) shall be co-terminus with the term of office of the members referred to in sub-clause (i) of clause (b) of sub-section (1) and they shall likewise on expiry of their term of office ceased to be members of the committee and shall be deemed to have vacated their office.

(3) < [(a)] The Committee shall have a Chairman[and a Vice-Chairman] within 15 days after the two members referred to in sub -clause (ii) of clause (b) of sub-section (1) are co-opted or appointed as the case may be the Collector or an officer authorised by him in that behalf shall convenue a meeting of the members of the Committee for election of a chairman [and a Vice-Chairman] who shall be from the members referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised officer, but such presiding officer and the members referred to in sub-clauses (iii), (iv), (v), (vi) and (vii) of clause (b) of sub-section ( 1) sh all not have a right to vote at such meeting.

[(b) Notwithstanding anything contained in clause (a), within 15 days from the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1988, the Collector or an officer authorised by him in that behalf shall convene a meeting of the members of the Committee for the election of a Vice-Chairman who shall be from the members referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised officer, but such presiding officer and the members referred to in sub-clauses (iv) to (vii) of clause (b) of sub - section (1) shall not have a right to vote at such meeting. The Vice-Chairman so elected shall hold office as such Vice-Chairman subject to the provisions of sub-section (4)].

Explanation.-- For the purposes of this sub-section, the expression "Collector" shall have the same meaning as in clause (a) of sub-section (2) of section 144A.

(4) Without prejudice to the provisions of sub-section (3), the Chairman [and ViceChairman] shall be elected every year in the first meeting of the Committee convened within one month after the close of the co-operative year by the Collector or an officer authorised by him in that behalf and where the Chairman [or Vice-Chairman] is to be elected to fill vacancy occurred due to any reason whatsoever the Collector or an officer authorised by him in that behalf shall convene the meeting of the Committee within one month from the date of occurrence of the vacancy and the provisions of sub-section (3) shall mutatis mutandis apply to such meetings.

The Chairman [and Vice-Chairman] elected under sub-section (3) or sub-section (4) shall cease to be the Chairman [and Vice-Chairman] on the date preceding the date of meeting held for election of the chairman [and Vice-Chairman] after the close of the cooperative year and shall vacate his office.

(5) A casual vacancy of a member referred to in sub -clauses (ii) and (iv) of clause (b) of sub-section (1) due to any reason whatsoever shall be filled in by co-option by the committee or by selection by the recognised union or unions of the employees, as the case may be, within two months from the occurrence of such vacancy; and where there is failure on the part of the committee or such union or unions, as the case may be, to do so, then appointment by the Registrar:

Provided that, if the vacancy occurs within four months preceding the date on which the term of such member expires, the vacancy shall not, unless the Registrar otherwise directs, be filled:

Provided further that, the member so co-opted, selected or appointed to fill a vacancy shall hold office so long only as the member in whose place he is co-opted, selected or appointed would have held office, if the vacancy had not occurred.

(6) Where a person becomes a member by virtue of holding any office or being an employee, he shall cease to be a member of the committee, as soon as he ceases to be holder of that office or ceases to be such employee, as the case may be.

(7) The committee shall exercise such powers and perform such functions as may be conferred or entrusted to it by this Act or by the rules made thereunder or by the bye-laws of the [State Agriculture and Rural Development Bank.]

(8) Without prejudice to the other provisions relating to the procedure at the meeting of the committee as maybe laid down by rules or bye-laws made in that behalf, one-third of the total number of members of the committee shall form the quorum at any meeting of the committee.

Footnote:
1. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988, s. 19.
2. These words were inserted by Mah. 13 of 1994, s. 11.
3. These words were inserted, by Mah. 10 of 1988, s. 22(a).
4. This portion was substituted for the portion beginning with "two members" and ending with "weaker section", by Mah. 20 of 1992, s. 3.
5. These words were substituted for the words "such employees" by Mah. 7 of 1997, s. 13.
6. Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the word "Chairman" the words "and a Vice-Chairman" was Inserted, by Mah. 10 of 1988 s. 22(b).
7. Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the word "Chairman" the words "and a Vice-Chairman" was inserted, by Mah. 10 of 1988 s. 22(b).
8. This clause (b) was inserted by Mah. 10 of 1988, s. 22(c).
9. These words were inserted by Mah. 10 of 1988, s. 22(d).

Section 112C - [Deleted]

[* * * * * * *]

Footnote:
1. Section 112 C was deleted, by Mah. 10 of 1988, s. 23.

Section 113 - Appointment, powers and functions of Trustee

(1) The Registrar, or any other person appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it.

(2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed and shall have perpetual succession and a common seal, and in hi s corporate name may sue and be sued.

(3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the [State Agriculture Development and Rural Bank] and the Trustee, as modified from time to time by mutual agreement between the [State Agriculture and Rural Development Bank] and the Trustee.

Footnote:
1. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988, s. 19.

Section 114 - Issue of debentures

(1) With the previous sanction of the State Government and the Trustee, and subject to such terms and conditions as the State Government may impose, the [State Agriculture and Rural Development Bank] in the discharge of its function as [an Agriculture and Rural Development Bank] may issue debentures of such denominations, for such period, and at such rates of interest, as it may deem expedient on the security of mortgages [instruments of hypothecation, guarantee, pledge or charge created in favour of the Bank, or mortgages, instruments of hypothecation, guarantee, pledge or charge to be acquired or partly on mortgages or on any of the aforesaid instruments] held and partly to be acquired, and properties and other assets of the [State Agriculture and Rural Development Bank].

(2) Every debenture may contain a term fixing a period not exceeding thirty years from the date of issue during which it shall be redeemable, or reserving to the committee the right to redeem at any time in advance of the date fixed for debenture not less than three months' notice in writing.

(3) The total amount due on debentures issued by the [State Agriculture and Rural Development Bank] and outstanding at any time, shall not exceed--
(a) where debentures are issued against mortgages [instruments of hypothecation, guarantees, pledge or charge] held, the aggregate of--
(i) the amounts due on the mortgages;- [and any or all of the aforesaid instruments].

(ii) the value of the properties and other assets transferred or deemed to have been transferred under section 121 by the [Primary Agriculture and Rural Development Banks] to the [State Agricultural and Rural Development Bank] and subsisting as such time; and

(iii) The amounts paid under the mortgages [and the other instruments] aforesaid and the unsecured amounts remaining in the hands of the [State Agriculture and Rural Development Bank] or the Trustee at the time;

(b) Where debentures are issued otherwise than on mortgages [or the instruments aforesaid) held, the total amount as calculated under clause (a) increased by such portion of the amount obtained on the debentures as is not covered by a mortgage, [instruments of hypothecation, guarantee, pledge or charge.].

Footnote:
1. These words were sub stituted for the words "State Land Development Bank" and "a Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were sub stituted for the words "or mortgages to be acquired or partly onmortgages" by Mah. 5 of 1990, s. 4(a).
3. These words were inserted, by Mah. 5 1990, s. 4(b)(i)(A).
4. These words were inserted, by Mah. 5 1990, s. 4 (b)(i)(B).
5. These words were inserted, by Mah. 5 1990, s. 4(b)(i)(C).
6. These words were inserted, by Mah. 5 1990, s. 4(b)(ii)(A).
7. These words were Inserted, by Mah. 5 1990, s. 4 (b)(ii)(B)

Section 115 - Guarantee by State Government

The principal of, and interest on the debentures issued under the preceding section, or any specified portion thereof, may carry the guarantee of the State Government and to such conditions as the State Government may think fit to impose.

Section 116 - Vesting of property in Trustee and Debenture holders charge on assets

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

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 5(a).
2. These words were sub stituted for the words "State Land Development Bank" and "Land Development Bank" by Mah. 10 of 1988, s. 19.
3. These words were sub stituted for the words "mortgages and assets" by Mah. 5 of 1990, s. 5(b).
4. These words were inserted by Mah. 5 of 1990, s. 5(c).

Section 117 - Powers of [Agriculture and Rural Development Banks] to advance loans and to hold lands

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

Footnote:
1. These words were sub stituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were Inserted by Mah. 5 of 1990, s. 6.

Section 118 - [Deleted]

[* ***** * *]

Footnote:
1. Section 118 was deleted, by Mah. 10 of 1988, s. 24.

Section 119 - Order granting loan conclusive on certain matters

A written order by the [Agriculture and Rural Development Bank], or persons or committee authorised under the by-laws of the Bank to make loans for all or any of the purposes specified in >section 111, granting, either before or after the commencement of this Act, a loan to or with the consent of a person mentioned therein, for the purpose of carrying out the work specified therein for the benefit of the land or for the productive purpose [or for the purpose of dwelling house in rural area] specified therein, shall for the purposes of this Act be conclusive of the following matters that is to say,--
(a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, [or for the purpose of dwelling house in rural area], as the case may be, within the meaning of section 111;

(b) that the person had at the date of the order a right to make such an improvement or incur expenditure for the productive purpose, [or for the purpose of dwelling house in rural area], as the case may be; and

(c) that the improvement is one benefiting the land [or such dwelling house] specified and productive purpose [or for the purpose of dwelling house in rural area], concerns the land [or such dwelling house] offered in security, or any part thereof as may be relevant.

Footnote:
1. These words were sub stituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were inserted by Mah. 5 of 1990, s. 7(a).
3. These words were sub stituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
4. These words were inserted by Mah. 5 of 1990, s. 7(b).

Section 120 - Priority of mortgage

(1) A mortgage executed in favour of an [an Agriculture and Rural Development Bank], shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Loans Act 1883, or the Agriculturists' Loans Act, 1884, or under any other law for the time being force.

(2) Notwithstanding anything contained in the Bombay Tenancy and Agricultural Lands Act, 1948, or any other corresponding law for the time being in force, where a mortgage in favour of an [an Agriculture and Rural Development Bank] is in respect of land in which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and hi s interest therein under such law be subject to the prior charge of the [Agriculture and Rural Development Bank].

Footnote:
1. These words were substituted for the words "Land Development Bank" by Mah. 10 of 1988, s. 19.
2. These words were substituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.

Section 121 - Mortgages [and other instruments] executed in favour of [an Agriculture and Rural Development Bank] to stand vested in [State Agriculture and Rural Development Bank]

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


Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 8(b).
2. These words were sub stituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 8(a).
4. Section 122 was substituted for the original by Mah. 5 1990, s. 9.

Section 122 - Registration of mortgage lease etc. executed in favour of Agriculture and Rural Development Banks

Notwithstanding anything contained in the Indian Registration Act, 1908 it shall not be necessary to register mortgage, lease, hypothecation deed, loan, bond surety bond, guarantee deed, promissory note or loan agreement executed in favour of the Agriculture and Rural Development Bank, provided the Bank sends within such time and in such manner as may be prescribed a copy of such instrument to the concerned registering authority; and on receipt of the copy the registering authority shall file the same in the relevant books prescribed under the Registration Act, 1908:

Provided that, any such instrument executed in favour of the bank before the date of publication of the Maharashtra Co-operative Societies (Amendment) Act, 1989 in the Official Gazette may be sent to the concerned registering authority within the period of three months from such date.

Footnote:
1. Section 122 was substituted for the original by Mah. 5 1990, s. 9.

Section 123 - Mortgages and [other instruments] not to be questioned on insolvency of mortgagors [or executants]

Notwithstanding anything contained in the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage, [or any other instruments supporting the loan] executed in favour of [an Agriculture and Rural Development Banks] shall, not be called in question in any insolvency proceedings on the ground that it was executed in order to give the Bank a preference over other creditors of the mortgagor [or of the executant of the instrument].

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 10(c)(i).
2. These words were inserted by Mah. 5 of 1990, s. 10(c)(ii).
3. These words were inserted by Mah. 5 of 1990, s. 10(a).
4. These words were substituted for the words "a Land Development Bank", "Land Development Bank" and "State Land Development Bank" by March. 10 of 1988, s. 19.
5. These words were inserted by Mah. 5 of 1990, s. 10(b).

Section 124 - [Deleted]

[* * * * * * * ]

Footnote:
1. Section 124 was deleted by Mah. 10 of 1988, s. 25.

Section 125 - Mortgages [and other instruments] executed by managers of joint Hindu families.

(1) Mortgages [and other instruments] in respect of loans by [an Agriculture and Rural Development Bank] or the (State Agriculture and Rural Development Bank] either before or after the commencement of this Act, by the manager of Hindu joint family for the improvement of agricultural land or of the methods of cultivation or for financing any other means to raise the productivity of the land, or for the purchase of land, [or for creation of new movable or immovable assets or for the purpose of acquisition, construction, rebuilding or repairing of a dwelling house in rural area] shall be binding on every member of such joint Hindu family notwithstanding any law to the contrary.

(2) In other cases, where a mortgage [or other instrument] executed in favour of [an Agriculture and Rural Development Bank] or [State Agriculture and Rural Development Bank] either before or after the commencement of this Act, is called in question on the ground that it was executed by the manager of a Hindu joint family for purpose not binding on the members (whether such members have attained majority or not thereof the burden of proving the same shall, notwithstanding any law to the contrary, lie on the party alleging it

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 11(c).
2. These words were Inserted by Mah. 5 of 1990, s. 11(a)(i).
3. These words were substituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
4. These words were inserted by Mah. 5 of 1990, s. 11(a)(ii).
5. These words were inserted by Mah. 5 of 1990, s. 11(b).

Section 126 - Section 8 of Act XXXII of 1956 to apply to mortgages [and other instruments] to [an Agriculture and Rural Development Banks], subject to certain modification

Section 8 of the Hindu Minority and Guardianship Act, 1956,shall apply to mortgages [and other instruments] in favour of [an Agriculture and Rural Development Banks], subject to the modification that reference, to court therein shall be construed as reference to the Collector or his nominee and the appeal against the order of the Collector or his nominee shall lie to the Commissioner.

Footnote:
1. These words were inserted by Mah. 5 of 1990, s. 12.
2. These words were substituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 11(c).

Section 127 - Restrictions on lease

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, no mortgagor of property mortgaged to [an Agriculture and Rural Development Bank], shall except with the prior consent in writing of the bank, and subject to such terms and conditions as the bank may, impose, lease or create any tenancy rights on any such property:
Provided that, the rights of the [an Agriculture and Rural Development Bank] shall be enforceable against the tenant purchaser, the lessee or the tenant, as the case may be, as if he himself were a mortgagor.

(2) Where land, mortgaged with possession to [an Agriculture and Rural Development Bank], is in actual possession of a tenant, the mortgagor or the [an Agriculture and Rural Development Bank], shall give notice to the tenant to pay rent to the [an Agriculture and Rural Development Bank] during the currency of the lease and the mortgage, and on such notice being given the tenant shall be deemed to have attorn to the [an Agriculture and Rural Development Bank].

Footnote:
1. These words were substituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.

Section 128 - [Agriculture and Rural Development Bank] to receive money and give discharge

Notwithstanding anything contained in section 121, all moneys due under the mortgage shall unless other wise directed by the [State Agriculture and Rural Development Bank] or the Trustee and communicated to the mortgagor, be payable by the mortgagor to the [Agriculture and Rural Development Bank], and such payment shall be as valid as if the mortgage had not been so transferred and the [Agriculture and Rural Development Bank] shall in the absence of specific direction to the contrary, issued by the [Stage Agriculture and Rural Development Bank] or Trustee and communicated to the bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under mortgage.

Footnote:
1. These words were sub stituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
2. These words were Inserted by Mah. 5 of 1990, s. 11(b).

Section 129 - Powers of Agriculture and Rural Development Bank where mortgaged property is destroyed or security becomes insufficient

Where any property mortgaged to an Agriculture and Rural Development Bank is wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the repay such portion of the loan as may be determined by the bank, has failed to provide such security or to repay such portion of the loan, the whole of the loan shall be deemed to fall due at once; and the bank shall be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof.

Explanation. -- Security shall be deemed insufficient within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the rules, regulations or the by-laws of the Agriculture and Rural Development Bank

Footnote:
1. Section 129 was substituted for the original by Mah. 5 of 1990, s. 13.

Section 130 - Right of [Agriculture and Rural Development Banks] to buy mortgaged property

(1) Property purchased under section 133 (3) by, and property transferred under section 100 to, [Agriculture and Rural Development Banks], may be disposed of by such banks by sale within such period as may be fixed by the Trustee, subject to the, condition that such sales shall be in favour only of agriculturists eligible to hold land under the Bombay Tenancy and Agricultural Lands Act 1948, or any corresponding law for the time being in force, [or in favour of Tribals, if such property belongs to a Tribal] or may by lease out by them on such terms and conditions as may be laid down by the State Government from time to time.

[Explanation.-- For the purposes of this sub -section and section 133 A; 'Tribal' means a person belonging to a Scheduled Tribe within the meaning of the Explanation to section 36 of the Maharashtra Land Revenue Code, 1966, and includes his successor in interest.]

(2) Nothing contained in any law for the time being in force fixing the maximum limit of agricultural holdings shall apply to the acquisition or holding of land by the5 [Agriculture and Rural Development Banks] under this section.

Footnote:
1. These words were sub stituted for the words "a Land Development Bank", "State Land Development Bank" and "Land Development Bank" by March. 10 of 1988, s. 19.
2. These words were sub stituted for the words "State Land Development Bank", "Land Development Bank" and "a Land Development Bank" by March, 10 of 1988, s. 19.
3. These words were inserted by Mah. 5 of 1990, s. 14(a).
4. This Explanation was added by Mah. 5 of 1990, s. 14(b).
5. Section 132 was sub stituted for the original by Mah. 5 of 1990, s. 15.

Section 131 - Recovery of loans by development banks

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

Footnote:
1. These words were substituted for the words "State Land Development Bank", "Land Development Bank" and "a Land Development Bank" by March, 10 of 1988, s. 19.

Section 132 - Powers to distraint

(1) If any instalment payable under a mortgage, hypothecation deed loan bond, surety bond or other instrument executed in favour of Agriculture and Rural Development Bank, or any part of such instalment, has remained unpaid for more than one month from the date on which it fell due, the bank shall, in addition to any other remedy available to the bank, apply to the Registrar for recovery of such instalments or part thereof by distraint and sale of the produce of the mortgaged or other wise encumbered land and properties of and on such land including the standing crops thereon or the movable property encumbered under hypothecation deed or loan bond. The instalments due or any part thereof shall also be recoverable by distraint and sale of the new property created by the debtor by converting the original movable property for which the loan was granted by the bank.

(2) On receipt of such application, the Registrar notwithstanding anything contained in the Transfer of Property Act, 1882, take action in the manner prescribed for the purpose of distraining and selling such produce or the properties referred to in sub section (1):
Provided that, no distraint shall be made after the expiry of twelve months from the date on which the instalment fell due.

Footnote:
1. Section 132 was substituted for the original by Mah. 5 of 1990, s. 15.

Section 133 - Sale of mortgaged property

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the Agriculture and Rural Development Bank or any person authorised by it in this behalf shall, in case of default of payment of 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 by public auction in the village in which the mortgaged property is situated or at the nearest place of public resort, without the intervention of the Court;
Provided that, no action shall be taken under this sub -section and no such power shall be exercised, unless and until --
(a) the Agriculture and Rural Development Bank has been previously authorised to exercise the power conferred under this sub-section after hearing the objections, if any, of the mortgager or mortgagors,

(b) notice in writing requiring payment of such mortgage money or part thereof has been served upon --
(i) the mortgager or each of the mortgagors,
(ii) any person who has any interest in or charge upon the property mortgaged, or in or upon the right to redeem the same as far as it known to the bank,
(iii) any surety for the payment of the mortgaged debt or any part thereof, and
(iv) any creditor of the mortgager who has in a suit for administration of his estate obtained a decree for sale of mortgaged property, and

(c) default has been made in payment of such mortgage money or part thereof, for three months after service of the notice.

(2) Where Agriculture and Rural Development Bank fails to take action against a defaulter under section 129 or 132 or under this section the Trustee may take such action. If such action is taken by the Trustee, the provisions of this Chapter and of any rules prescribed shall apply in respect thereto, as if all references to the Agriculture and Rural Development Bank in the said provision were references to the Trustee.

(3) Notwithstanding anything contained in any law for the time being in force, is shall be lawful for a primary Agriculture and Rural Development Bank to purchase any mortgaged property sold under this Chapter.

Footnote:
1. Section 133 was substituted for the original by Mah. 5 of 1990, s. 16.

Section 133A - Mortgaged or encumbered property of Tribal and to be sold to non Tribal at public auction under section 133

Notwithstanding anything contained in this Act or in any other law for. the time being in force, where the mortgaged or encumbered property belongs to a Tribal, it shall not be sold to any non-Tribal bidder at public auction under section 133 or otherwise transferred to a non-tribal under the provisions of this Act.

Footnote:
1. Section 133 A was inserted by Mah. 5 of 1990, s. 17.

Section 134 - Confirmation of sale

(1) On effecting the sale by [an Agriculture and Rural Development Bank] under section 133, the bank shall, in the prescribed manner, submit to the [State Agriculture Development Bank] and the result of the sales, and the [State Agriculture and Rural Development Bank] may, with the approval of the Registrar, confirm the sale or cancel it.

(2) Where the sale is effected by the [State Agriculture and Development Bank] or the trustee under section 133, the [State Agriculture and Development Bank] or the Trustee, as the case may be, shall in the prescribed manner submit to the Registrar a report setting forth the manner in which the sale has been effected and the result of the sale, and the Registrar may confirm or cancel the sale.

Footnote:
1. These words were substituted for the words "State Land Development Bank", "Land Development Bank" and "a Land Development Bank" by March. 10 of 1988, s. 19.

Section 135 - Disposal of sale-proceeds

The proceeds of every sale effected under section 133 and confirmed under the preceding section, shall be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of all costs, charges and expenses incurred in connection with the sales or attempted sales, secondly in payment of any or all interest due on account of the mortgage [or encumberance) in consequences whereof the [mortgage or other wise encumbered property] was sold, and thirdly in payment of the principal due on account of the mortgage [or encumberance] including costs and charges incidental to the recovery.

If there remain any residue from the proceeds of sale, the same be paid to the person proving himself interested in the property sold, or if there are more such persons than one, then to such persons upon their joint receipt or according to their respective interest therein, as may be determined by the [Agriculture and Rural Development Bank]:

Provided that, before any such payments are made the unsecured dues owing--
(a) from the mortgagor to the [or the debtor] to the [Agricultural and Rural Development Bank] may be adjusted, and
(b) from any member or past member or whom the mortgagor [or the debtor] is indebted may also be adjusted under the written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.

Footnote:
1. These words were inserted, by Mah. 5 of 1990, s. 18(a).
2. These words were substituted for the words "mortgage property", by Mah. 5 of 1990, s. 18(b).
3. These words were sub stituted for the words "State Land Development Bank", "Land Development Bank" and "a Land Development Bank" by March. 10 of 1988, s. 19.
4. These words were inserted, by Mah. 5 of 1990, s. 18(c).

Section 136 - Certificate to purchase, delivery of property and title of purchase

(1) Where a sale of mortgaged property has become absolute under section 134 and the sale-proceeds have been received in full by the [Agriculture and Rural Development Bank], the bank shall grant a certificate to the purchaser in the prescribed form certifying the property sold, the sale-price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale became absolute; and upon the production of such certificate the Sub-Registrar appointed under the India Registration Act, 1908, within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register relating to immovable property.

(2) (a) Where the mortgaged property sold is in the occupancy of the mortgagor, or of some person on hi s behalf, or some person claiming under a title created by the mortgagor, sub sequent to the mortgage in favour of the [State Agriculture and Rural Development Bank] or [an Agriculture and Rural Development Bank] and a certificate in respect thereof has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person whom he may appoint to receive delivery on his behalf, in possession of the property.

(b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the same, and a certificate in respect thereof has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser and after notice to such tenants or other persons, order the delivery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and proclaiming to the occupant by beat of drum or other customary mode at some convenient place that the right, title and interest of the mortgagor have been transferred to the purchaser.

(3) Where any property is sold in the exercise or purported exercise of a power of sale under section 133, the title of the purchaser shall not be questioned on the ground that the circumstances required for authorising the sale had not arisen, due notice of the sale was not given, or the power of sale was otherwise improperly or irregularly exercised:

Provided that, any person who suffers damage on account of unauthorised, improper or irregular exercise of such power shall have a remedy in damages against the [Agriculture and Rural Development Bank].

Footnote:
1. These words were substituted for the words "State Land Development Bank", "Land Development
2. These words were inserted, by Mah. 5 of 1990, s. 18(a).

Section 137 - Recovery of loans on certificate by Registrar

(1) Notwithstanding anything contained in section 91 and 98, on an application made by [an Agriculture and Rural Development Bank] for the recovery of arrears of any sum advanced by it to any of its members and on its furnishing a statement of accounts in respect of the arrears, the Registrar may, after making such enquiries as he deems fit. grant a certificate for the recovery of the amount stated therein to be due as arrears.

(2) A certificate by the Registrar under sub-section (1) shall be final and conclusive as to arrears due. The arrears stated to be due therein shall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue.

(3) It shall be lawful to the Collector to take precautionary measures authorised by sections 140 to 144 of the Bombay Land Revenue Code, 1879 or any law or provision corresponding thereto for the time being in force until the arrears due to the [Agriculture and Rural Development Bank] together with interest and any incidental charges incurred in the recovery of such arrears, are paid or security of such arrears is furnished to the satisfaction of the Registrar.

(4) It shall be competent for the Registrar or a person authorised by him to direct conditional attachment of the property of the mortgagor until the arrears due to the [Agriculture and Rural Development Bank] together with interest and any incidental charges incurred in recovery of such arrears, are paid or security for payment of a such arrears is furnished to the satisfaction of the Registrar and the provisions of section 95 shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section.

Footnote:
1. These words were substituted for the words "State Land Development Bank", "Land Development Bank" and "a Land Development Bank" by March. 10 of 1988, s. 19.

Section 138 - [Mode of recovery by Collector]

[* * * * * *]

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

Footnote:
1. This marginal note was sub stituted by Mah. 33 of 1963, s. 27(c).
2. Sub-section (1) was deleted by Mah. 33 of 1963, s. 27(a).
3. These words were sub stituted for the words "a Land Development Bank shall", by Mah. 33 of 1963 s. 27(a).
4. These words were sub stituted for the words "a Land Development Bank". "Land Development Banks" "State Land Development Bank", and "a Land development Bank" respectively, by March. 10 of 1988, s. 19.
5. These words were inserted by Mah. 10 of 1988, s. 26.

Section 139 - Officers or members of family not to bid at auction sales

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

Explanation.--For the purposes of this section, the expression "member of the family" means wife, husband, father, mother, bother, sister, son, daughter, son-in-law or daughter-in-law

Footnote:
1. Section 139 was substituted for the original by Mah. 20, of 1986, s. 56.
2. These words were sub stituted for the words "a Land Development Bank". "Land Development Banks" "State Land Development Bank", and "a Land development Bank" respectively, by March. 10 of 1988, s. 19.

Section 140 - Section 40 of Bom. XXVIII of 1947 not to apply to alienation in favour of Agriculture and Rural Development Bank

Nothing contained in section 40 of the Bombay Agricultural Debtors Relief Act, 1947, or any corresponding law for the time being in force in any part of the State shall apply to any alienation in favour of the [Agriculture and Rural Development Banks].

Footnote:
1. These words were sub stituted for the words "a Land Development Bank". "Land Development Banks" "State Land Development Bank", and "a Land development Bank" respectively, by March. 10 of 1988, s. 19.

Section 141 - Provision for Guarantee funds to meet certain losses

(1) It shall be competent for the State Government to constitute one or more Guarantee Funds on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise as a result of loans being made by the [Agriculture and Rural Development Banks] on titles to immovable property subsequently found to be defective or for any other purpose under for or create a separate Guarantee Fund.

(2) The[State Agriculture and Rural Development Bank] and the > [Agriculture and Rural Development Banks] shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilisation of such funds shall be governed by such rules, as may be made by the State Government in this behalf.

Footnote:
1. These words were substituted for the words "a Land Development Bank". "Land Development Banks" "State Land Development Bank", and "a Land development Bank" respectively, by March. 10 of 1988, s. 19.

Section 142 - Registrar's power to permit any society or Class of societies to function as an Agriculture and Rural Development Bank

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

Footnote:
1. This word was substituted for the words "Co-operative bank" by Mah. 20 of 1986, s. 57.
2. These words were inserted by Mah. 10 of 1988, s. 27.
3. These words weresubstitutedfor the words "a Land Development Bank", "LandDevelopment Banks" "State Land Development Bank", and "aLand development Bank" respectively, by March. 10 of 1988, s. 19.

Section 143 - Service of notice

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

Section 143A - Transfer of rights and liabilities of Government in respect of schemes sanctioned under Bom. XXVIII of 1942

(1) Where any works, included in a land improvement scheme which has come into force under the Bombay Land Improvement Schemes Act, 1942, are carried out at the cost or part cost of the State Government, and such cost is to be recovered from the owners of lands (other than Government) included in the scheme as shown in the statement prepared under section 13 [or in the interim or final statement] prepared under section 13 A of the Act, then notwithstanding anything contained in this Act, all the rights and liabilities of the State Government for the recovery of the cost or part cost from the owners of land shall stand transferred to [an Agriculture and Rural Development Bank], in relation to such owners of lands and subject to such terms and conditions (including any condition regarding giving of any guarantee by the State Government) as may be agreed upon between the State Government and such [Agriculture and Rural Development Bank]; and for arriving at such agreement, every owner of land shall produce before the Bank all such documents, and other evidence relating to his land included in such scheme as the Bank may requires.

(2) On such transfer of rights and liabilities of the State Government, the [Agriculture and Rural Development Bank] shall pay to the State Government an amount equal to the extent of the liability accepted by it under such agreement, and the State Government shall inform the owners of lands concerned of such transfer: and thereupon, the provisions of this Act and rules thereunder in so far as they provide for advancing of loans (including provision for mortgaging of property,) and recovery thereof shall apply in relation to the amount of cost to be recovered from each owner of land as they apply in relation to advancing of loans and recovery thereof (including interest) as if such owner was a member of the [Agriculture and Rural Development Bank]. The transfer of the and liabilities and payment made in accordance therewith; shall discharge the owners of lands of their liability to make payment to the State Government under the Bombay Land Improvement Schemes Act, 1942, but to the extent only of their respective liability accepted by the Bank].

Footnote:
1. Section 143 A was inserted by Mah. 35 1969, s. 2.
2. These words were substituted for the words "or In the final statement" by Mah. 10 of 1971, s. 2.
3. These words were substituted for the words "a Land Development Bank", "Land Development Banks" "State Land Development Bank", and "a Land development Bank" respectively, by March. 10 of 1988, s. 19.

Section 144. Power to Committee of [State Agriculture and Rural Development Bank] to supervise [Agriculture and Rural Development Banks] and make regulations

The committee of the [State Agriculture and Rural Development Bank] shall have a general powerof supervision over [Agriculture and Rural Development Banks] and may,with the previous sanction of the State Government make regulations, not inconsistent with this Act or the rules made thereunder, for all any of the following matters, namely:--
(a) for the inspection of the account books and proceedings of [Agriculture and Rural Development Banks];
(b) for the submission of returns and reports by such banks in respect of their transactions;
(c) for the periodical settlement of accounts between such banks and the [State Agriculture and Rural Development Bank] being accounts relating to the payment of the amounts recovered by such banks on mortgages transferred to the [State Agriculture and Rural Development Bank];
(d) for the form in which applications to such banks for loans shall be made and for the valuation of properties offered as security for such loans;
(e)for the investment of moneys realised from the mortgagors;
(f) the conditions of service of employees of such banks:
(g)the programme and policy to be followed by such banks for making loans;
(h) the types and extent of security to be obtained by such banks of advancing loans;
(i) generally, for the purpose of safeguarding the interest of the parties furtherance of activities of such banks, and carrying out the purposes of this Chapter.

Footnote:
1. These words were substituted for the words "a Land Development Bank", "LandDevelopment Banks" "Stale Land Development Bank", and "aLand development Bank" respectively, by March. 10 of 1988, s. 19.
2. These words substituted for the words "Land Development banks", "State Land Development Bank". "PrimaryLand Development Banks" and "Primary Land Development Bank" by Mah. 10 of 1988, s. 19.

Section 144IA - Reorganisation, amalgamation or division of [Agriculture and Rural Development Banks,] in public interest

(1) Notwithstanding anything in this Act or in any rules or bye-laws made thereunder, it shall be lawful for the State Government to provide from time to time, by an Order made under and in accordance with the provisions of section 18, for the reorganisation of the [Primary Agriculture and Rural Development Banks], either by amalgamating with it all any of the [Primary Agriculture and Rural Development Banks] or otherwise: or for the division of the [State Agriculture and Rural Development Banks] into a [State Agriculture and Rural Development Bank] and one or more [Primary Agriculture and Rural Development Banks] as may be considered necessary: or for the amalgamation or division of all or any of the [Primary Agriculture and Rural Development Banks] among themselves. Accordingly. for the purposes of this section. in section 18 and in any rules made thereunder for the word "Registrar" wherever it occurs. the words. "State Government" shall be deemed to be substituted.

(2) Where there is no [Primary Agriculture and Rural Development Bank] in the State or in any part thereof. or [Primary Agriculture and Rural Development Banks] are merged with the [State Agriculture and Rural Development Bank] [State Agriculture and Rural Development Bank] amy establish and maintain as many branches as may be deemed necessary: and shall function also as a [Primary Agriculture and Development Bank] throughout the State or in the area concerned, as the case may be. Any reference to a [Primary Agriculture and Rural Development Bank] in this Act. or any other law for the time being in force or in any instrument, shall, as the context may require, be construed as a reference to the [Primary Agriculture and Rural Development Bank] or its branches concerned, or be read subject to such modifications as may be necessary due to absence of any [Primary Agriculture and Rural Development Bank] or due to merger of the [Primary Agriculture and Rural Development Bank] or Banks in the [State Agriculture and Rural Development Bank.].

Footnote:
1. Section 144-IA was inserted by Mah of 1972, s. 4.
2. These words substituted for the words "Land Development banks", "State Land Development Bank", "Primary Land development Banks" and "Primary Land Development Bank" by Mah. 10 of 1988, s. 19.

Section 144IB - [Deleted]

[* * * * *]

Footnote:
1. Section 144 - 1B was deleted by Mah. 10 of 1988, s. 28.