Where any property mortgaged to the 2[State Cooperative Agricultural and Rural Development Bank] or a 2[Co-operative Agricultural and Rural Development Bank] is wholly or partially destroyed or the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the Board or the Committee of such bank, as the case may be, for providing further security to render the whole security sufficient or of repaying such portion of the loan as may be determined by the Board or Committee, 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 Board or the Committee, as the case may be, shall be entitled to take action against the mortgagor under Section 90 or 91 for the recovery thereof.
Explanation – A security is insufficient within the meaning of this Section unless the value of the mortgaged property exceeds the amount for the time
1. Substituted by Orissa Act 11 of 2004.
2. Substituted by ibid.
may, on the application of a 1[Co-operative Agricultural and Rural Development Bank] and under circumstances in which the powers of sale conferred by Section 91 may be exercised, appoint in writing a receiver of the produce and income of the mortgaged property or any part thereof and such receiver, shall be entitled either to take possession of the property or collect its produce and income, as the case may be, to retain out of any money realised by him, his expenses of management including his remuneration, if any, as may be fixed by the Board and to apply the balance in accordance with the provisions of Sub-Section (8) of Section 69-A of the Transfer of Property Act, 1882 (4 of 1882).
(2) A receiver appointed under Sub-Section (1) may for sufficient cause and on application made by the mortgagor, be removed by the Board.
(3) A vacancy in the office of the receiver may be filled up by the Board.
(4) Nothing in this Section shall empower the Board to appoint a receiver where the mortgaged property is already in the possession of a receiver appointed by a Civil Court.