(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, where a power of sale without the intervention of court is expressly conferred on a [Gram Vikas Bank] 4 [by a declaration of charge made or mortgage deed] 1 executed before or after, the commencement of this Act, the managing committee of such bank or any person authorized by such committee in this behalf shall, in case of default in payment of the [money due under the mortgage or charge] 2 or any part thereof, have power, in addition to any other remedy available to the said bank, [to bring the property subject to any mortgage or charge to sale] 3 without -the intervention of the court.
1. Substituted by section 5 (a) of U. P. Act No. 3 of 1979.
2. Sub. by section 5 (a) ibid.
3. Added by section 5 (a) ibid.
4. Substituted by section 4 (b) of U.P. Act No. 19 of 1994.
5. Subs. by section 4 (d) ibid.
[The Uttar Pradesh Sahakari Gram Vikas Bank Act, 1964] [Section 17]
(2) No such power shall be exercised unless-
(a) a notice in writing requiring payment of such mortgage money or part has been served upon-
(i) the mortgagor or each of the mortgagors;
(ii) any person' who has to the knowledge of the bank any interest in or charge upon the property mortgaged or right to redeem the same;
(iii) any surety for the payment of the mortgage debt or any part thereof; and
(iv) any creditor of the mortgagor who has in a suit for, the administration of his estate obtained a decree for sale of the mortgaged property ;
(b) default in-payment of such mortgage money or part thereof continued beyond three months after such service; and
(c) the Board has, after hearing the objections, if any, of the mortgagor or any other person mentioned in clause (a), authorized the exercise of such power.
(3) A sale under this section shall be conducted in such manner, as may be prescribed.
[(4) Where any property sold under this Act is in the occupancy of any person creating mortgage or charge, or of some person on his behalf, or of some person claiming title subsequent to the creation of such mortgage or charge in favour of a [Gram Vikas Bank] 4 or the [Uttar Pradesh Gram Vikas Bank] 3 , the Collector, shall, on the application of the purchaser, order delivery to be made by putting such purchaser, or any person appointed by him in this behalf, in possession of the property.]
1 [(5) A sale under this section of an agricultural holding or any other immovable property or of any interest therein shall be subject to the provisions of sections 157-A and 157-B of the Uttar Pradesh Zamindary Abolition and Land Reforms Act, 1950.]
2 Power of Land Development Bank where mortgaged property is destroyed or security becomes in sufficient
17. Where any property mortgaged to a [Gram Vikas Bank] 4 is wholly or partially destroy or the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the managing committee of the [Gram Vikas Bank] 4 of providing further security so as to render the security sufficient or of repaying such portion of the loan as may be determined by the 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 committee shall be entitled to take action against the mortgagor under this Act or any other law for the time being in force for the recovery thereof.
Explanation- A security shall be deemed insufficient within the meaning of this section if the value of the mortgaged property does not exceed the amount for the time being due on the, mortgage by such, proportion as may be specified in the rules, regulations or the bye-laws of the [Gram Vikas Bank] 4 .
1. Added by section 5 (b) of U. P. Act No. 3 of 1979.
2. Added by section 9 of U. P. Act No. 16 of 1989.
3. Substituted by section 4 (b) of U.P. Act No. 19 of 1994.
4. Subs. by section 4 (d) ibid.
[The Uttar Pradesh Sahakari Gram Vikas Bank Act, 1964] [Section 18-20] Power of Board or of Trustee to distrain and sell property etc.