(1) In the case of a direct mortgage with the [Uttar Pradesh Gram Vikas Bank] 1 , the Board or the Trustee shall have all the powers conferred on the managing committee of a [Gram Vikas Bank] 2 under sections 15, 16 and 17, and in exercising the power under sub-section (1) of section 16, clause (c) of subsection (2) of that section shall be deemed to be non-existent.
(2) The Board or the Trustee may direct the managing committee of a [Gram Vikas Bank] 2 to take action against a defaulter under section 15 or section 16 or section 17, and if the committee neglects or fails to do so, the Board or the Trustee may take such action subject to the provisions of sub-section (1).
(3) (a) Where such action as is mentioned in sub-section (1) or subsection (2) is taken by the Board, the provisions of this Act and the rules or regulations made in this behalf shall apply in respect thereto as if all references to the [Gram Vikas Bank] 2 and to its managing committee in the said provisions were references to the [Uttar Pradesh Gram Vikas Bank] 2 and the Board respectively.
(b) Where such action as is mentioned in sub-section (1) or sub-section
(2) is taken by the Trustee, the provisions of this Act and the rules or regulations made in this behalf shall apply in respect thereto as if all references to the [Gram Vikas Bank] 2 or to its managing committee in the said provisions were references to the Trustee.
Title of purchaser not to be questionned on the irregularity etc.
19. Where any property is sold in the exercise or purported exercise of a power of sale under section 16, the title of the purchaser shall not be questioned on the ground that-
(a) the circumstances required for authorizing the sale had not arisen, or
(b) due notice of the sale was not given, or
(c) the power of sale was otherwise improperly or irregularly exercised ; but any person who has suffered any damage by an unauthorized, improper or irregular exercise of any such power shall have the right to claim damages against the [Gram Vikas Bank] 2 .
Mortgage not to questioned on insolvency of mortgagor
20. Notwithstanding anything contained in any law relating to insolvency, a mortgage executed in favour of a [Gram Vikas Bank] 2 shall not be called in question on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the [Gram Vikas Bank] 2 a preference, over other creditors of the mortgagor.
1. Substituted by section 4 (b) of U.P. Act No. 19 of 1994.
2. Subs. by section 4 (d) ibid.
[The Uttar Pradesh Sahakari Gram Vikas Bank Act, 1964] [Section 21-21C] Appoint of receiver and his powers Act 4 of 1882