(1) Notwithstanding anything contained in this Act or any other law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a co-operative society by any member or past member or deceased member shall be a first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements or machinery, raw materials for manufacture and any finished products manufactured from such raw materials, belonging to such member, past member or forming part of the estate of the deceased member, as the case may be.
(2) No person shall transfer any property which is subject to a charge under subsection (1) except with the prior permission in writing of the co-operative society which holds the charge.
(3) Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions of sub-section (2) shall be void.
(4) The charge created under sub-section (1) shall be available as against any claim of the Government arising from a loan granted under the Land Improvement Loans Act, 1883, (19 of 1883) or the Agriculturist's Loans Act, 1884, (12 of 1884) after the grant of the loan by the co-operative society.
Charge on immovable property of members borrowing loans from certain co-operative societies.
45. Notwithstanding anything contained in this Act or in any other law for the time being in force -
(i) any person who makes an application to a co-operative society of which he is a member for a loan shall, if he owns any land or has interest in any land as tenant, make a declaration in the prescribed form which 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 loan which co-operative society may make to the member in pursuance of the application and for all future advances, if any, required by him which the co-operative society may make to him as such member subject to such maximum as may be determined by the co-operative society together with the interest on such amount of loan and advances;
(ii) a declaration made under clause (i) may be varied at any time by a member with the consent of the co-operative society in favour of which such charge is created;
(iii) no member shall alienate the whole or any part of the land or interest therein specified in the declaration made under clause (i) until the whole amount borrowed by the member together with interest thereon is paid in full:
Provided that for the purpose of paying in full to the co-operative society the whole amount borrowed by the member together with interest thereon, the member may, with the previous permission in writing of the co-operative society and subject to such conditions as the co-operative society may impose, alienate the whole or any part of such land or interest thereon :
Provided further that standing crops on any such land may be alienated with the previous permission of the co-operative society;
(iv) any alienation made in contravention of the provisions of clause (iii) shall be void;
(v) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the co-operative society on the land or interest specified in the declaration made under clause (i) for and to the extent of the dues owing by him on account of the loans and advances;
(vi) the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (i) notwithstanding anything contained in any law relating to land revenue for the time being in force;
(vii) any sum due to a co-operative society in consequence of charge created under a declaration under clause (i) shall, on application of its recovery being made by such co-operative society accompanied by a certificate signed by the Registrar, be recoverable by the Collector, according to the law and under the rules for the time being in force for the recovery of land revenue.
Explanation. - For the purposes of this section, "co-operative society" shall mean any co-operative society or class of co-operative societies specified in this behalf by the Government by a general or special order.
Charge and set-off in respect of share or contribution or interest of members.
46. A co-operative society shall have a charge upon the share or contribution or interest in the capital and on the deposit of a member or past member or deceased member and upon any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the cooperative society, and may set-off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
Share or contribution or interest not liable to attachment.
47. Subject to the provisions of section 45, the share or contribution or interest of a member or past member or deceased member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member, and a receiver under the Provincial Insolvency Act, 1920 (5 of 1920) shall not be entitled to or have any claim on such share or contribution or interest.
Register of members.
48. Any register or list of members or shares kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein -
(a) the date on which any person entered in such register or list became a member; and
(b) the date on which any such person ceased to be a member.
Admissibility of copy of entry as evidence.