(1) Notwithstanding anything in any other law for the time being in force, but subject to any prior claim of Government in respect of any money recoverable as a public demand and to the provisions of sections 60 and 61 of the Code of Civil Procedure, 1908 or the analogous law in force in the State of Arunachal Pradesh.
(a) Any debt or outstanding demand, owed to a society by any member or past member or deceased member, shall be a first charge –
(i) upon the crops, or other agricultural produce raised in whole or in part whether with or without a loan taken from the society by such member or past member or deceased member.
(ii) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery or raw materials for manufacture, or workshop, godown or place of business supplied to or purchased by such member or past member or deceased member, in whole or in part, from any loan whether in money or goods made to him by the society, and
(iii) upon any movable property which may have been hypothecated, pledged or otherwise mortgaged by a member with the society and remaining in his custody :
(b) any outstanding demands or dues payable to a society by any member or past member or deceased member in respect of rent, shares, loan or purchase money or any other rights or amounts payable to such society shall be a first charge upon his interest in the immovable property of the society.
Explanation - The prior claim of Government in respect of dues, other than land revenue, shall be restricted for the purpose of sub-section (1) to the assets created by a member out of the funds in respect of which the Government has claim.
(2) No property or interest in property, which is subject to a charge under the foregoing sub-section, shall be transferred in any manner without the previous permission of the society; and such transfer shall be subject to such conditions, if any, as the society may impose.
(3) Any transfer made in contravention of sub-section (2) shall be void.
Prior claim of society.
V of 1908.
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(4) Notwithstanding anything contained in sub-sections (2) and (3), a society, which has as one of its objects the disposal of the produce of its members may provide in its bye-laws, or may other5wise contract with its members, -
(a) That every such member shall dispose of his produce through the society ; and
(b) That any member, who is found guilty of a breach of the byelaw or any such contract, shall reimburse the society for any loss, determined in such manner as may be specified in the bye-laws.
49. Notwithstanding anything contained in this Act or in any other law for the time being in force, -
(a) Any person, who makes an application to a society of which he is a member, for a loan shall, if he owns any land or has interest in any land as a tenant, made a declaration in the form prescribed, such declaration shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance of the application, and for all future advances if any, required by him which the society may make to him as such member, subject to such maximum as may be determined by the society, together with interest on such amount of the loan and advances :
(b) Any person who has taken a loan from a society of which he is a member, before the date of the coming into force of this Act, and who owns any land or has interest in land as a tenant, and who has not already made such a declaration before the aforesaid date shall, as soon as possible thereafter, make a declaration in the form and to the effect referred to in clause (a); and no such person shall, unless and until he made such declaration, be entitled to exercise any rights as a member of the society ;
(c) a declaration made under clause (a) or (b) may be varied at any time by a member, with the consent of the society in favour of which such charge is created ;
(d) No member shall alienate the whole or an part of the land or interest therein, specified in the declaration made under clause (a) or
(b) until the whole amount borrowed by the member together with interest thereon, is repaid in full :
Charge on the immovable property of members borrowing from certain societies.
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Provided that, for the purpose of paying in full to the society the whole amount borrowed by the member together with interest thereon, the member may, with the previous permission in writing of the society and subject to such conditions as the society may impose, alienate the whole or any part of such land or interest thereon :
Provided further that, if a part of the amount borrowed by a member is paid, the Central Financing Agency may, on an application from the member, release from the charge created under the declaration made under clause (a) or (b), such part of the movable or immovable property specified in the said declaration as it may deem proper with due regard to the security of the balance of the amount remaining outstanding from the member :
Provided further that, standing crops on any such land may be alienated with the previous permission of the society.
(e) Any alienation made in contravention of the provision of clause (d) shall be void ;
(f) Subject to the prior claim of the Government in respect of land revenue or any money recoverable as land revenue, or any other law for the time being in force in any part of the State there shall be first charge in favour of the society on the land or interest specified in the declaration made under clause (a) or (b), for and to the extent of the dues owing by him on account of the loan ;
(g) the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (a) or
(b) notwithstanding anything contained in any law relating to land revenue for the time being in force ;
(h) any sum due to a society in consequence of charge created under a declaration under clause (a) or clause (b) shall on application for its recovery being made by such society accompanied by a certificate signed by the Registrar, be recoverable by the Deputy Commissioner/Additional Deputy Commissioner according to the laws and under the rules for the time being in force for recovery as a public demand under the Bengal Public Demand Recovery Act, 1913.
Explanation - For the purpose of this section, the expression “society” means –
(i) any resource society, the majority of the members of which are agriculturist and the primary object of which is to obtain credit for its members, or
(ii) any society, or any society of the class of societies specified in this behalf by the Government, by a general or special order .
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