(1) Mortgage executed in favour of a Land Development Bank shall have priority over any claim of the Stat Government arising from a loan, under the Land improvement Loans Act, 1883 (19 of 1883),of the Agriculturists’ Loans Act, 1884(12 of 1884) or any other law for the time time being in force, granted subsequent of the execution of the mortgage.
(2) A mortgage executed in favour of a Land Development Bank shall have priority also over the claim of may other person arising out of a mortgage of any description executed or any other charge created, after the issue of a public notice under section 44. C in respect of the property of the loanee specified in the said publice notice.
44 I. Right of Land Development Bank to purchase mortgaged property.- Notwithstanding the provisions contained in the Bihar Land Reforms (Fixation of Ceiling Are3a and Acquisition of Surplus Land) Act, 1961 (Bihar Act XII of 1962) but subject to any tenancy law for the time being in force, it shall be lawful for Land Development Bank to purchase any mortgaged property sold under this Chapter, and the property so purchased shall be disposed to by such bank by sale in such manner and within such period as may be fixed by the trustee:
Provided that a purchaser of such mortgaged property form a Land Development Bank shall purchase it subject to the provisions of the Bihar Land Reforms(Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act Xii of 1962).
44 J. Mortgages executed in favour of Land Development Bank to Stand Vested in Trustee.- The mortgages executed in favour of and all other assets transferred to the State Cooperative Land Development Bank by its members, either before or after the commencement Bihar Cooperative Societies (Amendment) Ordinance, 1975 shall vest in the Truste with effect from the date of such execution or transfer and likewise mortgages or transfer of assets in favour of Primary Cooperative Land Development Bank by its members shall be deemed to have been transferred to the State Cooperative Land Development Bank and shall vest in the Trustee.
44 K. Power of Primary Land Development Bank to receive money and grant discharge. – Notwithstanding that a mortgage executed in favour of a Primary Land Development Bank has been transferred or is deemed, under provisions of section 44-J, to have been transferred to the State Cooperative Land Development Bank.
(a) all moneys due under the mortgage shall, in the absence of any specific direction to the contrary issued by the Board of trustee and communicated to the mortgagor, be payable to the Primary Land Development Bank and such payment 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 of Trustee and communicated to the Primary Land Development Bank, by entitled to sue on the mortgage or take any other proceeding, including a proceeding under this Act. for the recovery of the moneys due under the mortgage.
44 L. Registration of mortgage in favour of Land Development Bank. – Notwithstanding anything contained in the Indian Registration Act, 1908 (16 of 1908), it shall not be necessary to register mortgages executed in favour of Land Development Bank Provided that the Land Development Bank concerned sends within such time and in such manner as may be prescribed a copy of the instrument; where by movable or immovable property is mortgaged for the purpose of securing repayment of the loan to the Registering Officer within the local limits of whose jurisdiction the whole or any part of the property mortgaged is situate, and such Registering officer shall file a copy or copies, as the case may be, in this Book no. 1 prescribed under section 51 of the Indian Regist4ration Act, 1908 (16 of 1908).
44 M. Power of Land Development Bank to pay prior debts of mortgagors and secure consequential reliefs. – (1) Where a mortgage is executed in favour of a Land Development Bank for payment of prior debts of the mortgagor, such Bank any, notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882) by such notice in writing may be prescribed, require any person to whom any such debts is due to receive payment of such debt of part thereof form the Bank at its registered office or its branch offices within such period as may be specified in the notice.
(2) Where any such person fails to receive such notice or such payment, such debt or part there of as the case may be, shall cease to carry interest from the expiration of the period specified in the notice;
Provided that were there is a dispute as regards the amount of any such debt, the person to whom such debt is due may refer the dispute to Registrar for decision in accordance with provisions of section 48;
Provided further that the person to whom such debt is due shall, pending the decision in the dispute, be bound to receive payment, of the amount offered by the Land Development Bank towards the debt but such receipts shall not prejudice the right, if any, of person to recover the balance claimed by him.
(3) Where a notice has been served under sub-section (1) on any person for receiving payment of his dues, such person shall be bound to deliver possession, to the mortgagor, or any property held in usufructuary mortgage for the debts due on or before the date specified in the aforesaid notice;
Provided that the may deliver possession of any agricultural land afther harvesting of the standing crop, if any, and in such an event the shall be entitled to receive the amount due to him from the Land Development Bank on the date of delivery of possession given to the mortgagor.
(4) Where a person holding an; property in usufructuary mortgage refuses delivery of possession in the manner indicated in sub-section(3), the Collector shall, on an application of the Land Development Bank made in this behalf, after making a summary enquiry reject the mortgagee and restore the mortgaged land to the mortgagor and the mortgage shall thereupon be deemed to have terminated.
(5) The provisions of this section shall be subject to any tenancy laws for the time being in force:
44 N. Power of Land Development Bank to advance loans and hold lands. – Subject to the provisions of this Act and in accordance with the rules made thereunder, it shall be competent for a Land Development Bank to advance loans for the purposes referred to in section 44- B and to hold lands the possession of which is transferred to it under the provisions of this Chapter.
44 O. Public notice for entertaining objection. – (1) When an application for a loan is made for any of the purposes mentioned in section 44- B, a public notice shall be given of the application in such manner and form as may be prescribed, calling upon all persons interested to make their objections to the loan, if any, before the date specified therein. The person by whom such public notice shall be given and the manner in which the objection shall be disposed of by him shall be such as may be prescribed. Copies of such public notice shall also be sent separately to such persons and within such time as may be prescribed,
(2) The person empowered to give notice under sub-section (1) shall consider every objection made under that sub-section and pass an order in writing either upholding or overruling it. When the objections is overruled, he shall recommend the application to the Land Development Bank for its consideration:
Provided that when the question raised by an objection is, in the opinion of such person, one of such a nature that it cannot be satisfactorily decided except by a Civil Court, he shall postpone the consideration of the application until the question has been so decided.
(3) A notice under sub-section (1) published in the manner prescribed, shall for the purpose of this Act, be deemed to be proper notice to all persons having or offered as security for the loan,
(4) Where an application is recommended under sub-section (2) the Land Development Bank shall, in accordance with the rule made by it in this behalf, consider such applicati0n for the purpose of making the loan,
5. Where no objection under sub-section (1) has been made the question at issue shall be decided by the person empowered to consider objections in such manner as he may deem proper and no person shall have any claim what-soever including any claim arising out of a mortgage of any description against the property of the loanee for which the loan applied for is sanctioned under the provisions of this Chapter, until such time as the loan together with interest thereon or any other dues arising out of the loan are paid in full.
44 P. Mortgage executed by managers of Hindu joint families or natural or legal guardians of minors or disabled persons. – (1) Mortgages, in respect of loans by a Land Development Bank either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975 by the manager of a Hindu Joint family or the natural or legal guardian of a minor or disabled person for any of the purposes specified in section 44 B. shall be binding on every member of such Hindu joint family, or such minor or disabled person, notwithstanding any law to the contrary.
(2) Subject to the provisions of sub-section (1), where a mortgage execute in favour of a Land Development Bank, either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975, is called in question on the ground that it was executed by the Manager of a Hindu Joint family or natural or legal guardian of a minor or disabled person for a purpose not binding on the members of such Hindu joint family or such minor or disabled person, the burden of proving the same shall, notwithstanding any law to the contrary, lie on the party alleging it.
44 Q. Order granting loan conclusive of certain matters. – Written order by the Land Development Bank, or person o managing committees authorised by this Chapter or under the bye-laws of the Bank loans for all or any of the purposes specified in section 44-B granting either before or after the commencement of the Bihar Cooperative Societies (Amendment) Ordinance, 1975, a loan to or with the consent of a person mentioned therein for the benefit of the land or for the productive purpose specified therein, shall be conclusive of the following matters namely :-
(a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of section 44-B;
(b) that the person had on date of the order a right to make such productive purpose, as the case may be; and
(c) that the improvement is one benefitting the land specified and the productive purpose concerns the land offered as security or any part thereof as may be relevant.
44 R. Recovery of loan by Land Development Bank. – Any loan granted by a Land Development Bank, including any interest chargeable and, such cost, if any as may be prescribed incurred in connection therewith shall, when they become due, be recoverable by the Bank concerned:
Provided that such loan, interest or cost may be recoverable also by the State Cooperative Land Development Bank even if the loan has been granted by a Primary Cooperative Land Development Bank affiliated to it.
44 S. Collector to make recoveries during certain period. – (1) During such period as the Stat Government may, by general or special order, notifying in the official Gazette, it shall be competent for Collector, on application being made to him in this behalf by a Land Development Bank, to recover all sums due to the Bank, including the cost of such recovery.
(2) The Collector or any person specially authorized by him in this behalf, shall recover all sums due to a Land Development Bank in the following order and manner, namely :-
(a) for the borrower as if they were in arrears of land revenue due by him.
(b) Out of the land for the benefit of which the loan has been ranted as if they were arrears of land revenue in respect of that land.
(c) for 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 realization of land revenue by the sale of immovable property other than the land on which the revenue is due.
(3) the provisions of this section shall be subject to any tenancy law for the time being in force.
44 T. Distraint and sale. – (1) if any instalment payable under mortgage executed in favour of a Land Development Bank of any part of such instalment has remained unpaid for more than one month from the date on which it fell due, the managing committee of such a bank or the Board may, in addition to any other remedy available to the bank, apply to the Registrar for the recovery of such instalment of part there of by distraint and sale the produce of the mortgaged land, including the standing crops thereon, and any other movable property of the default in the manner prescribed. On receipt of such application the registrar may, after giving registered notice to the mortgagor notwithstanding anything contained in the Transfer of Property Act. 1882 (4 of 1882), direct distraint and sale of such produce and, if necessary, also of such other movable property of the defaulter:
Provided that such implements of husbandry other than the implements mortgaged to the Land Development Bank, and such cattle of the defaulter as may, in the opinion of the Registrar, be necessary to enable the defaulter to earn his livelihood as an agriculturist shall not be liable for such distraint and sale:
Provided further that no such distraint shall be made after the expiry of twelve months from the date on which the instalment fell due.
(2) The value of the property distrained shall be, as far as may be, equal to the amount due, and the expenses of the distraint and the cost of the sale.
44 U. Powers of sale when to be exercised. – (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882). Where a power of sale without the intervention of the court is expressly conferred on a Land Development Bank by the mortgage deed, the managing committee of such bank or the Board or any person authorized by such managing committee or the Board in this behalf behalf shall, in case of default of payment of 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 court.
(2) No such power shall be exercise unless and until -
(a) the Borad has previously authorized the exercise of the power conferred by sub-section (1) after considering the representation, if any, of the mortgagor:
(b) the registered notice requiring payment of such mortgage money or part thereof has been served upon-
(i) the mortgagor;
(ii) any person who has any interest in, or charge upon the property mortgaged or in or upon the right to redeem the same;
(i) any surety for the payment of the mortgage debt or any part there of;
and
(c) default has been made in payment of such mortgage money or part thereof, for there months after service of notice in this behalf, 44 V. Powers of Land Development Bank where mortgaged property is destroyed or security becomes insufficient. – Where any property mortgaged to a Land 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 managing committee of the said bank or the Board of providing further security enough to make the whole security sufficient or of repaving such portion of the loan as may be determined by the managing committee or the Board has failed to provide such security or to repay such portion of the loan the whole of the loan shall, notwithstanding its terms and conditions, be deemed to fall due at once and the managing committee or the Board shall be entitled to take action against the mortgagor, under section 44-S or section 44-T or section 44-U, for the recovery thereof.
Explanation.- For the purpose of this section, security shall be deemed to be insufficient unless the value of the mortgaged property, including improvement thereon, exceeds the amount for the time being, due on the mortgage by such proportion as may b specified in the rules or the bye-laws of the Land development Bank.
44 W. Power of the Board or Trustee to take action against defaulters.
– (1) The Board or the Trustee may direct the managing committee of a primary Cooperative Land Development Bank to take action against a defaulter under sections 44-S,44-T,44-U or 44-V and if the managing committee neglects or fails to do so, the Board or the Trustee may take such action. The Trustee may direct the Board to take similar action against a defaulter and on the Board]s neglect or failure to do so, may take such action himself.
(2) Where an action is taken under the provisions of sub-section (1) by the Board, the provisions of this Chapter or any rules made in pursuance there of shall apply as if all references therein to a primary Co-operative Land Development Bank and its managing committee were references to the State Cooperative Land Development Bank and the Board.
(3) When an action is taken under the prov