(G.O.(MS) 30/86/CO-OP dated, 30th April 1986) S.R.O. No. 668/86.- In exercise of the powers conferred by section 50 of the Kerala state Co-operative Agricultural Development Banks Act, 1984 (20 of 1984) and in supersession of all existing rules on the subject, the Government of Kerala hereby make the following rules, namely:-

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S.Rule 1 Short title and commencement.

(1) These rules may be called the Kerala State Co-operative Agricultural Development Bank Rules, 1986.

(2) They shall come into force at once.

S.Rule 2 Definitions.

In these rules, unless the context otherwise requires,-

(a)  "Act" means the Kerala Co-operative Agricultural Development Banks Act, 1984;

(b)  "Distrainer" means an officer appointed under section 28 of the Act and who is empowered to distrain and sell the produce of the land to which the Gehan or the mortgage or hypothecation relates including the standing crops thereon and other movable property of the defaulter in accordance with the provisions of Chapter IV of the Act;

(c)  "Forum" means a form set out in the Appendix;

(d)  "Principal officer of the Co-operative Department in the District" means the Joint Registrar of Co-operative Societies having jurisdiction over the district.

S.Rule 3 Procedure for the creation of Gehan.

(1) A declaration creating a Gehan shall be in Form No. I.

(2) The Agricultural Development Bank as well as the primary bank shall maintain a register of such declaration in Form No. IIA/IIB in respect of immovable and movable property.

(3) A copy of the declaration or instrument whereby the Gehan created or mortgaged or hypothecated or executed in favour of the Agricultural Development Bank and or primary bank shall be forwarded by the concerned bank either through a person or by registered post acknowledgement due with in a maximum period of thirty days from the date of its creation or execution, to the registering officer within the local limits of whose jurisdiction the whole or any part of the property to which the Gehan or mortgage or hypothecation relates if situated.

¹[(4) The amount of loan that may be sanctioned on the basis of a declaration made under sub-section (1) of S.11 of the Act shall be limited to a maximum of Rs. 30,000] ²

S.Rule 4 Form of notice referred to in section 12 of the Act.

The notice referred to in section 12 of the Act shall be in Form No. III and published both in the bank office and the village office concerned.

S.Rule 5 Procedure in the distraint and sale of produce movable properties of the loanee.

No application under sub-section (1) of section 16 of the Act shall be entertained unless the Board or the committee deposits the necessary costs of distraint and sale as may be fixed by the Registrar*.

S.Rule 6 Procedure on receipt of the application.

The application for distraint and sale shall be in such form as may be required by the Registrar and shall be signed by a person authorised by the Board or the Committee. On receipt of the application, the Registrar or the Principal officer of the Co-operative Department in the District shall if satisfied that the particulars set forth in the application are correct, prepare a demand notice in duplicate, in the form laid down by the Registrar, setting forth the name of the defaulter, the amount due together with interest and forward the same to the distrainer concerned. The distrainer shall deliver a demand notice to the defaulter in the manner prescribed under section 17 of the Act.

S.Rule 7 Rules for seizure and sale of property distrained.

In the seizure and sale of the movable or the produce of the mortgaged land including the standing crops thereon, the following procedure shall be observed:-
 
(a) As soon as distraint is made, the distrainer shall deliver to the defaulter a list of property distrained and shall give him intimation in writing of the place, and the day and hour at which the distrained property will be sold:

Provided that where owing to the absence of the defaulter it is not possible to deliver such list to the defaulter, the distrainer shall deliver such list to an adult male member of the defaulter's family or to the authorised agent to the defaulter and when such delivery is not possible, shall affix the list on some conspicuous part of his residence endorsing thereon the place where the property is kept and the place, day and hour at which the property will be sold:

Provided further that where the defaulter does not reside in the village in which the land, the standing cro

S.Rule 8 *Procedure in the sale of Mortgaged property/Gehan.

In the sale of secured immovable property under provisions of Chapter V of the Act, the following procedure shall be observed:-

(a) No application under sub-section (1) of section 20 of the Act shall be entertained unless the Board or the Committee deposits the necessary costs of proclamation and sale as may be fixed by the Registrar.

(b) The application shall be in such form as may be required by the Registrar and shall be signed by the Board or the committee or a person duly authorised by the Board of the committee. It shall state the amount due for recovery including interest, expenses incurred in the service of the notice referred to in clause (b) of sub-section (2) of section 19 of the Act, the names and addresses of the persons on whom notice was served under the said clause. It shall also contain a description of the immovable property including buildings, machinery and its accessories to be proceeded against, sufficient for its identification, and, in case such

S.Rule 9 Release of property attached on payment of arrears due.

Where before the sale is held, the mortgagor or any person claiming an interest in the restrained in the distrained property tenders payment of the full amount due including interest, batta and other costs, charges and expenses incurred in connection with the sale of the property, the sale officer shall not proceed with the sale.

S.Rule 10 Application to set aside the sale on deposit.

(1) The Sale Officer shall, on the conclusion of the sale, make a report to the Agricultural Development Bank or primary bank, at whose instance the property was brought to sale regarding the results of the sale.

(2) Whenever the sale of the mortgaged property, machinery or accessories is set aside under sub-section (2) of section 21 of the Act, the deposit or the purchase money, as the case may be, shall be returned to the purchaser. In such a cases, a sum equal to five percent of the purchase money deposited by the mortgagor or the person having a right or interest in the mortgaged property, machinery or accessories under sub-clause (b) of sub-section (1) of section of section 21 of the Act shall also be given to the purchaser.

S.Rule 11 Sale of immovable property to be proportionate to arrears due.

(1) It shall be lawful for the Sale Officer to sell the whole or any portion of the mortgaged property of a defaulter in discharge of money due, provided always that, so far as may be practicable, no larger section or portion of immovable property shall be sold that may be sufficient to discharge the amount due with interest and expenses of sale.

(2) When the salary has become absolute the Sale Officer shall issue a certificate of sale to the purchaser within 45 days from the date of sale in form No. IV.

S.Rule 12 3[Certificates to be sent to Registering officer.

Certificate of sale (Original and a copy, on copying sheet/filing sheet) granted by the sale officer shall be transmitted by him to the Sub-Registrar, within whose jurisdiction the whole or any part of the property specified in the certificate is situate, for the purpose of entering the contents thereof in his register relating to immovable property as provided in section 23 of the Act.]

S.Rule 13 Charges recoverable from sale proceeds.

The amount deposited under rule 5 or clause (a) of rule 8, as the case may be, shall be returned to the applicant except where the expenses or costs incurred by the disrainer on account of the distraint or sale, as the case may be, or where the expenses or costs incurred by the distainer on account or the distraint or sale, as the case may be, or where the costs, charges and expenses properly incurred by the Sale Officer as incidental to the sale or attempted sale exceed the sale proceeds, in which case, such excess shall be deducted from the amount deposited and the balance, if any, shall be returned to the applicant.

S.Rule 14 Deduction from sale proceeds of agricultural produce in certain cases.

(1) On the execution of an agreement under sub-section (1) of section 32, the primary bank may send intimation by registered post/local delivery of the execution of the agreement to the marketing Co-operative Societies or the Commodity Boards through which the agricultural produce belonging to the member of the primary bank is marketed and furnish the said marketing Co-operative Societies or the Commodity Board with a copy of such agreement certified in the manner specified in rule 16. The Marketing Co-operative Societies or the Commodity Board through which the agricultural produce belonging to the member is marketed shall on receipt of such intimation from the primary bank make a note of the agreement in the register maintained by it for the disbursement of the sale proceeds.

(2) In respect of every member who has executed the said agreement and in respect of whom intimation has been sent under sub-rule (1) the primary bank may send to the Marketing Co-operative Society or

S.Rule 15 Summoning witnesses and requisitioning documents.

(1) Every summons issued under section 35 of the Act shall be in writing and shall be authenticated by the signature and the seal, if any, of the officer or person by whom it was issued. It shall require the person summoned to appear before the said officer or person of a specified time and place and shall state whether his attendance is required for the purpose of giving evidence, or to produce a document, or for both purposes; and any particular document the production of which is required, shall be described in the summons with reasonable accuracy.

(2) Any person summoned merely to produce a document shall be deemed to have complied with the summons, if he causes such document to be produced instead of attending personally to produce the same.

(3)(i) The service of summons under the Act, on any person may be effected,-

(a) by giving or tendering it to such person; or

(b) if such person is not found, by leaving it at his last known place of abode or bus

S.Rule 16 Certified copies of documents, entries in documents and accounts.

(1) No copy of a document or of an entry therein taken under section 38 of the Act shall be admissible in evidence unless it contains a certificate in Form No. V.

(2) The certificate referred to in sub-rule (1) contained in the copies granted under section 38 shall be signed by two Directors and by the President or the Secretary.

(3) The charges to be levied for the supply of a certified copy under section 38 shall be twenty five paise for every 175 words in English or 125 words in Malayalam or Tamil or Kannada or fractions thereof, subject to a minimum charge of one rupee.

S.Rule 17 Receipt for payments of arrears due.

Every person making a payment towards any money due for the recovery of which, application has been made under these rules shall be entitled to a receipt for the amount signed by the distrainer or the Sale Officer, as the case may be. Such receipt shall state the name of the person making the payment and the subject matter in respect of which the payment is made.

S.Rule 18 Process servers to be paid batta.

Persons employed in serving notices or any other process under these rules, shall be entitled to batta at such rate as, from time to time, be fixed by the Registrar of Co-operative Societies.

S.Rule 19 Constitution and strength of committees of primary Banks having individuals and primary agricultural credit Societies as members.

(1) Where the members of a primary bank consist of both individuals and primary agricultural credit Societies, the committee of the primary bank shall consist of such number of individual members and managers representing primary agricultural credit Societies as may be provided in the bye-laws.

(2) When the sale has become absolute the Sale Officering individuals shall be made by the individual members only and election of members of the committee representing primary agricultural credit Societies shall be made by the delegates representing primary agricultural credit society members only.

S.1

APPENDIX

Form No. I

(See Rule 3)

FORM FOR CREATING GEHAN/MORTGAGE/HYPOTHECATION

(In triplicate of which one in copying sheet)

Form of declaration to be made under section 10 of the Kerala State Co-operative Agricultural Development Bank Act, 1984 (20 of 1984) creating a Gehan upon immovable or movable property owned by a member of an Agricultural Development Bank or primary Bank in respect of any loan which such bank may make to the member.

KNOW ALL MEN by these presents that I/We Son/Sons/Daughter/s of . . . . . . . . . . . . . . . . . . . .aged about. . . . . . . . . . .residing at . . . . . . . . . . .and having permanent address as . . . . . . . . .. . . . . .hereinafter called the borrower/borrowers which expression shall where the context so permits, include his/their, succes