Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984
(1) Subject to the provisions of this Act the 20 [Agricultural and Rural Development Bank] and the primary Banks may advance loans to individuals and institutions on the security of lands and other fixed assets or of assets acquired by the loans borrowed which have been hypothecated to the 21 [Agricultural and Rural Development Bank] or the primary bank, as the case may be, on the basis of principles of valuation approved by the Registrar;
Provided that the Agricultural Development Bank and the primary Banks may, for such purposes and for such periods as may be specified by the Government by special or general order, advance loans without such security of land but on the specific guarantee of the Government for the repayment of the principal and payment of interest thereon;
Provided further that the Agricultural Development Bank and the primary anks may, with the previous approval of the Registrar and subject to such restrictions and limitations as may be prescribed, a
(1) Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 (21 of 1969), or in any other law for the time being in force, but subject to any claim of the Government in respect of land revenue or amounts recoverable as land revenue, whether prior in time or subsequent, any person owning any land or having interest in land as tenant or occupier or owning any land or having interest in any land as tenant or occupier or owning any other movable or immovable property who applies to a primary bank for a loan, shall make a declaration in the prescribed form creating a Gehan or mortgage or hypothecation in favour of the primary bank on the land or other movable or immovable property or interest therein or any movable property or movable assets to be acquired with the loan, specified in the declaration, for the repayment of the loan or advance granted or to be granted to him by the primary bank, together with interest on such amount of the loan or advance and expre
(1) Every person who applies for a loan from a primary bank shall make declaration in the prescribed form before an officer specified by the Registrar in this behalf that the movable or immovable property on which the Gehan or mortgage or hypothecation is created as security for the loan is free from encumbrances, that he is in actual possession thereof and that he has the right to create the Gehan or mortgage or hypothecation, as the case may be, thereon in favour of the primary bank.
(2) Notwithstanding anything contained in any law for the time being in force, where a declaration under sub section (1) in respect of any movable or immovable property is false or defective, the primary bank shall, subject to the provision of section 3, have a first charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the Gehan created or mortgage or hypothecation executed by the applicant as security for the lo
(1) Any amount payable under a Gehan created or mortgage or hypothecation executed in favour of the 24 [Agricultural and Rural Development Bank] or primary bank shall have priority over any claim of the Government arising from a loan under the Kerala Land Development Act, 1964 (17 of 1964), or the Kerala Agriculturists' Loan Act, 1961 (27 of 1961), granted after creation of the Gehan or the execution of the mortgage or hypothecation.
(2) Notwithstanding anything contained in any law for the time being in force, a Gehan created or mortgage or hypothecation executed in favour of the 25 [Agricultural and Rural Development Bank] or a primary bank shall take precedence over any attachment or equitable mortgage over the properties, where, after publication of a notice in the prescribed form, the claim or interest under such attachment or equitable mortgage has not been notified to such bank within the time prescribed in the said notice.
A Gehan created or mortgage or hypothecation executed or deemed to have been created or executed in favour of, and all other assets transferred or deemed to have been transferred to, a primary bank, shall, with effect from such creation, execution or transfer or with effect from the date of such deeming, as the case may be, be deemed to have been transferred by such primary bank to the Agricultural Development Bank.
Where a primary bank has granted a loan for improvement of any land situated in any area or areas covered by any specific programme of agricultural development, to a person appearing to the primary bank to have title to the said land or to be in lawful possession thereof, and the money has been either in whole or in part utilized for such improvement, and person acquiring titled to such land on ground of superior title or on any other ground shall be liable to repay to the primary bank so much of the loan as has been utilized for the improvement of the land together with interest thereon.
(1) Notwithstanding anything contained in the any law, custom or usage, where a primary bank makes a loan or an advance to a member belonging to a Scheduled Caste or Scheduled Tribes or to any other person having restricted rights of alienation over immovable property, it shall be competent to such member or person to create a Gehan or mortgage or hypothecation on such property in favour of such primary bank as security for such loan.
(2) The primary bank, shall, in the event of default by the member or person and without prejudice to any other remedy available to it either under law or contract or otherwise, be entitled to take possession of such property and lease the same to any person belonging to the same caste or tribe as the member belongs in case the defaulter is a member of a Scheduled Caste or Scheduled Tribe and in any other case to any person and appropriate the net receipts from the lease in repayment or the moneys due to it; and the member or person shall not be
(1) If any installment payable under a Gehan created or mortgage or hypothecation executed in favour of the 26 [Agricultural and Rural Development Bank] or a primary bank or any part of such installment has remained unpaid for more than one month from the date on which it fell due, the Board or the committee may, in addition to any other remedy available to it, apply to the Registrar or to any sale officer appointed by the Registrar under section 28 for the recovery of such installment or part thereof by distraint and sale of the produce of the land 27 [raw materials, work in process or finished goods] to which the Gehan or the mortgage or hypothecation relates, including the standing crops thereon and other movable property of the defaulter.
(2) On receipt of an application under sub section (1), the sale officer may, Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 (21 of 1969), take such action as is necessary to distrain and sell the produ
(1) Before or at the time when a distraint is made under section 16, the distrainer shall serve or cause to be served upon the defaulter a written demand specifying the amount for which the distraint is made.
(2) The demand shall be dated and signed by the distrainer and shall be served upon the defaulter by delivering copy to him or to some adult male member of his family at his usual place of abode or to his authorised agent, or when such service cannot be effected by affixing a copy of the demand on some conspicuous part of his abode and of the land to which the Gehan or mortgage or hypothecation relates.
(1) If, within fifteen days from the date of service of the demand referred to in section 17, the defaulter does not pay the amount for which the distraint was effected, the distrainer may sell in auction the distrained property or such part thereof as may, in this opinion, be necessary to satisfy the demand together with the expenses of the distraint and the cost of the sale.
(2) From the proceeds of such sale, a deduction shall be made at such rate as may be fixed by the Registrar from time to time on account of the costs of the sale.
(3) From the balance shall be deducted the expenses incurred by the distrainer on account of the distraint.
(4) The remainder, if any, shall be applied to the discharge of the amount for which the distraint was made.
(5) The surplus, if any, shall be delivered to the person whose property has been sold and he shall be given a receipt for the amount discharged from the proceeds of the sale.
(1) Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 (21 of 1969), or the Transfer of Property Act, 1882 (Central Act 4 of 1882) or in any other law for the time being in force, where a Gehan or mortgage or hypothecation has been created or executed in movable or immovable property in accordance with the provisions of sub-section (1) of section 10 in favour of the 28 [Agricultural and Rural Development Bank] or a primary Bank, the Board or committee of such bank or any person authorised by the Board or such committee shall, in case of default in the payment of sums due to the bank, have power, in addition to any other remedy available to the primary bank to bring to sale the property to which the Gehan or mortgage or hypothecation relates without intervention of the Court.
(2) No such power shall be exercised unless and until-
(a) the Board or the committee has previously authorised such sale in the exercise of the power of sale c
(1) For exercising the power of sale conferred by sub-section (1) of section 19, the Board or the Committee or any person duly authorised by the Board or the Committee, as the case may be, may apply to the sale officer appointed in that behalf under section 28 to sell the property to which the Gehan or mortgage or hypothecation relates or any part thereof, and such officer shall, after giving notice as required by section 19, sell such property in the manner prescribed.
(2) The sale shall be by public auction and shall be held in the village where the property to which the Gehan or mortgage or hypothecation relates is situate or at the nearest public place if the sale officer is of opinion that the property is likely to sell to better advantage at such place.
(1) When a property has been sold under this Chapter, any person having a right or interest therein affected by the sale may, at anytime within thirty days from the date of the sale, apply to the sale officer concerned to have the sale set aside on his depositing with the sale officer-
(a) for payment tot he 29 [Agricultural and Rural Development Bank] or the primary bank, as the case may be, the amount specified in the proclamation of sale together with subsequent interest and the costs, if any, incurred by the bank in bringing the property to sale; and
(b) for payment to the purchaser a sum equal to five per cent of the purchase money.
(2) If such deposit is made, the sale officer may make an order setting aside the sale.
(3) Where no application with deposit is made under sub-section (1) or where such application is made and disallowed, the sale officer may apply to the Registrar or any other officer empowered by him in this regard to make an order con
(1) The proceeds of every sale under this Chapter shall be applied by the sale officer first in payment of all costs, charges and expenses properly incurred by him as incidental to the sale or any attempted sale; secondly, in payment of all interest due on account of the Gehan or mortgage or hypothecation in consequence whereof the property was sold; thirdly, in payment of the principal money due on account of the Gehan or mortgage. Or hypothecation; and lastly, the residue, if any, shall be paid to the person proving himself interested in the property sold or, if there are more such person than one, then to such persons, according to their respective interest therein or upon their joint receipt.
(2) Any person dissatisfied with the decision of the sale officer in regard to the distribution of such residue may, within thirty days of the communication to him of such decision, institute a suit in a court to establish the right he claims.
(3) The sale officer shall not di
Where a sale of property has become absolute and the sale proceeds have been received in full by the sale officer, he shall grant a certificate to the purchaser in the prescribed form specifying the property sold, the sale price, the date of the sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale became absolute, and upon the production of such certificate the Sub Registrar within whose jurisdiction the whole or any part of the property specified in the certificate is situate, shall enter the contents of such certificate in his register relating to immovable property.
1) Where the property sold is in the occupancy of the person who created the Gehan or executed the mortgage or hypothecation, as the case may be, or of some person on his behalf or of some person claiming under a title, other than a lease, created by the person who created the Gehan or executed the mortgage or hypothecation subsequent to the Gehan or mortgage or hypothecation in favour of the 30 [Agricultural and Rural Development Bank] or the primary bank, as the case may be, and a certificate in respect thereof has been granted under section 23, the Registrar shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person appointed by the purchaser to receive delivery on his behalf, in possession of the property.
(2) Where the property sold is in the occupancy of a tenant or other person entitle to occupy the same and a certificate in respect thereof has been granted under section 23, the Registrar shall, on the application of t
It shall be competent to the Agricultural Development Bank or a primary bank to purchase any property sold under this chapter, but the property so purchased shall be disposed of by such bank by sale within such period as may be fixed by the Trustee.
(1) The Board may, on its own motion or on the application of any branch of the Agricultural Development Bank or the committee of a primary bank under circumstances in which the power of sale conferred by section 19 may be exercised, appoint in writing a receiver of the produce and income of the 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 expense 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 69A of the Transfer of Property Act, 1882 (Central Act 4 of 1882).
(2) A receiver appointed under sub-section (1) may, for sufficient cause and on application made by the person who created the Gehan or executed the mortgage or hypothecation, as the case may be, removed by the Board.
(3) A vacancy i
When a sale has been made in the professed exercise of the power of sale under section 19 and has been confirmed under sub-section (3) of section 21, the title of the purchaser shall not be impeachable on the ground that no cause had arisen to authorise the sale or that due notice was not given or that the power was otherwise improperly or irregularity exercised, but any person damnified by anauthorised or improper or irregular exercise of the power shall have his remedy in damages against the Agricultural Development Bank or the concerned primary bank, as the case may be.
The Registrar may appoint sale officer for the purpose of conducting sales under this Act.
Where any property which is subject to a Gehan or mortgage or hypothecation in favour of the Agricultural Development Bank or a primary bank is rendered insufficient and the person who created the Gehan or executed the mortgage or hypothecation, having been given a reasonable opportunity, by the Board or the committee of the primary bank, of providing further security enough to render the whole security enough to render the whole security sufficient or of repaying such portion of the loan as may be determined by the board or 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 fail due at once and the Board or the committee, as the case may be, shall be entitled to take action against the person who created the Gehan or executed the mortgage or hypothecation under section 16 or section 19 for the recovery thereof.
Explanation.- A security is insufficient within the meaning of this section if t
(1) The Board or the Trustee may direct the committee of a primary bank to take action against a defaulter under section 16 or section 19 or section 29 and if the committee neglect or fails to do so the Board or the Trustee may take such action.
(2) Where action is taken by the Board under sub-section (1), the provisions of this Act and of any rules or regulations made thereunder shall apply in respect thereto as if all references to the primary bank and to its committee in the said provisions were references to the primary bank and to its committee in the said provisions were references to the Agricultural Development Bank and the Board, respectively.
(3) Where action is taken by the Board under sub section (1), the provisions of this Act and of any rules or regulations made thereunder shall apply in respect thereto as if all references to the primary bank or to its committee in the said provisions were reference to the Trustee.
Notwithstanding anything contained in the Kerala Compensation for Tenants Improvements Act, 1958 (29 of 1958), the improvements, if any, made subsequent to the date of the Gehan or mortgage or hypothecation in favour of the Agricultural Development Bank or a primary bank, by the lessee of the property to which the Gehan or mortgage or hypothecation relates, shall be treated as accession to the property and shall be available to such bank for the realisation of the amount under the Gehan or mortgage or hypothecation.
(1) Notwithstanding anything contained in any law for the time being force, an applicant for a loan from a primary bank may execute an agreement in favour of that bank providing that it shall be lawful for the marketing Co-operative Societies or the Commodity Boards through which the agricultural produce belonging to the applicant is marketed, to deduct such mount as may be specified in the agreement from the sale proceeds of such agricultural produce marketed through such Co-operative Societies or boards and to pay the amounts so deducted to such primary bank in satisfaction of any debt or other demand due by the applicant to that bank.
Explanation.- For the purposes of this section, "Commodity Boards" means the Coffee Board established under the Coffee Act, 1942 (Central Act 7 of 1942), the Tea Board established under Tea Act, 1953 (Central Act 29 of 1953), the Rubber Board constituted under Rubber Act, 1947 (Central Act 24 of 1947), the Cardamom Board established un
Notwithstanding anything contained in the Insolvency Act, 1955 (2 of 1956), a Gehan created or mortgage or hypothecation executed in favour of the Agricultural Development Bank or a primary bank, shall not be called in question on the ground that it was not created or executed in good faith for valuable consideration or on the ground that it was created or executed in order to give such bank a preference over the other creditors of the person who created the Gehan or executed the mortgage or hypothecation.
Where a Gehan is created or mortgage or hypothecation is executed in favour of the Agricultural Development Bank or primary bank for payment of prior debts of the person who created the Gehan or executed the mortgage or hypothecation, such bank may, Notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, (Central Act 4 of 1882), by notice in writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice, and if any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice, except in cases where such person proves to the satisfaction of the Board or the committee of the Primary bank, as the case may be, that the failure to receive notice or payment was due to causes beyond his contro
(1) Subject to such restrictions, limitations and conditions as may be prescribed, the Registrar and officers subordinate to the Registrar who are authorised by the in this behalf by general or special order writing, and such other officials engaged in this relief or rural indebtedness or officers of Co-operative Banks which are registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969), as the Government may, by notification in the Gazette, authorise in this behalf shall have the same powers as are vested in a civil Court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), when trying a suit, in respect of the following matters, namely:-
(a) enforcing the attendance of any person and examining him on oath or affirmation;
(b) compelling the production of documents; and
(c) issuing commissions for the examination of witnesses.
(2) Any of the officers authorised by or under sub-section (1) may require a
(1) Notwithstanding anything contained in the Registration Acct, 1908 (Central Act 16 of 1908), it shall bot be necessary for any Director, managing Director, Secretary or other officer of the Agricultural Development Bank or of a primary bank to appear in person or by agent at any registration office in any proceedings connected with the registration of any instrument executed by him in his official capacity or to sign as provided in section 58 of that Act.
(2) Where any instrument is so executed, the registering officer who receives such instrument for registration may, if he thinks fit refer to such Director Managing Director, Secretary or other officer for information respecting the same, and, on being satisfied of the execution thereof, shall register the instrument.
Notwithstanding that a Gehan created or mortgage or hypothecation executed in favour of a primary bank has been transferred, or is deemed under the provision of section 13, to have been transferred to the Agricultural Development Bank-
(a) all moneys due under the Gehan or mortgage or hypothecation shall, in the absence of any specific direction to the contrary issued by the Board or the Trustee and communicated to the person who created the Gehan or executed the mortgage or hypothecation, be payable to the primary bank and such payment shall be as valid as if the Gehan or mortgage or hypothecation had not been so transferred; and
(b) the primary bank shall, in the absence of any specific direction to the contrary issued by the Board or the Trustee and communicated to the primary bank, be entitled to sue on the Gehan or mortgage or hypothecation or take any other proceedings for the recovery of the moneys due under the Gehan or mortgage, or hypothecation.
The Agricultural Development Bank or any primary bank may grant copies of any document obtained and kept by it in the courts of its business or of any entries in such documents; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document or the entries therein, as the case may be.
The provisions of Chapter IV and V shall apply also to loans advanced by primary Banks from funds which have not been borrowed from the Agricultural Development Bank and to loans taken over by the Kerala Co-operative Central Land Mortgage Bank from the Travancore Credit Bank.
Whenever under provision of this Act, notice is required to be given to any person in writing, it shall be sufficient to send such notice by registered post.
The provisions of sections 102 and 103 of the Transfer of Property Act, 1882 (Central Act 4 of 1882), and of any rules made by the high Court under section 104 of that Act, for carrying out the purposes of the said sections, shall apply, so far as may be, in respect of all notices to be served under this Act.
At any sale of movable or immovable property held under the provisions of this Act for the recovery of any money due to the Agricultural Development Bank or any primary bank, no Director, Managing Director, Secretary or other officer of the Agricultural Development Bank or such primary bank, as the case may be) except on behalf of the bank of which he is a Director, Managing Director, Secretary or other officer) and no sale officer or other person having any duty to perform in connection with such sale, shall, either directly or indirectly, bid for or acquire or attempt to acquire any interest in such property.
The Board may, if it thinks fit, delegate all or ay of its powers under section 19,20 and 26 to any executive committee constituted by it and consisting of two or more of its members.
The Board may, from time to time, with the previous sanction of the Registrar, start branches or regional offices of the Agricultural Development Bank at such convenient centers as it thinks fit and carry on operations through them.
(1) The Board may admit any primary bank or the Government as a member of the Agricultural Development Bank on application made in that behalf to that bank.
(2) The Board may also admit any Company or Corporation or any body of persons, whether incorporated or not and whether or not established by or under any law, or a Co-operative society as a nominal or associate member of the Agricultural Development Bank on application made in that behalf to that bank:
Provided that the previous approval of the Government shall be obtained for the admission of any company or corporation or body of persons.
Explanation.- In this section "nominal or associate member" means a member who possess only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in the regulations made by the Board.
(1) Notwithstanding anything contained in this Act or in any rules made thereunder or in any other law for the time being in force, the Government may, in consultation with the Agricultural Development Bank, by general or special order in writing empower any primary agricultural credit society registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969), to perform all or any of the functions of a primary bank under this Act.
(2) A primary agricultural credit society empowered under sub-section (1) shall, in respect of the functions so conferred on it, be deemed to be a primary bank under this Act provided that no such society shall have the right to be a member of the Agricultural Development Bank.
(3) A primary agricultural credit society empowered under sub-section (1) shall be made a member of the primary bank within whose jurisdiction the primary agricultural credit society is functioning, and shall be given representation i
(1) Notwithstanding anything contained in the any law for the time being in force, or in any contract, on and from the commencement of this Act, the entire assets and liabilities, rights, title, interest and obligations of the Kerala Co-operative Central Land Mortgage bank and primary land mortgage Banks shall stand transferred to and vested in the Agricultural Development Bank and its primary Banks, as the case may be, and thereupon the Agricultural Development Bank, and its primary banks may enforce the mortgage vested in them as if the properties mortgaged to the Kerala Co-operative Central Land Mortgage Bank and its primary Banks were mortgaged to the Agricultural Development Bank and its primary Banks.
(2) The shareholders, debenture-holders and depositors of the Kerala Co-operative Central Land Mortgage Bank and the primary land mortgage Banks shall be deemed to be the shareholders, debenture holders and depositors respectively of the Agricultural Development Bank and
Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 (21 of 1969), or the rules made thereunder, the Board shall have general power of supervision over the primary Banks and may, with the approval of the Trustee, make regulations not inconsistent with this Act or the rules made thereunder-
(a) for the inspection of the account books and proceedings of primary Banks;
(b) for the submission of returns and reports by primary Banks in respect of their transactions;
(c) for the periodical settlement of accounts between primary Banks and the Agricultural Development Bank for the payment of the amounts recovered by primary Banks on Gehan or mortgage or hypothecation transferred, or deemed under the provisions of section 13 to have been transferred, to the Agricultural Development Bank;
(d) prescribing the form in which application to primary Banks for loans should be made and for the valuation of the properties offered as security fo
(1) No Court shall take cognizance of any offence under this Act except with the previous sanction in writing of the Registrar, and no Court inferior to that of a Magistrate of the First Class shall try an offence punishable under this Act.
(2) No sanction shall be given under sub section (1) without giving the party concerned an opportunity of being heard.
(1) The Government may by notification in the Gazette, make rules to carry out all or any of the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for the following matters, namely:-
(a) the form of declaration under section 10;
(b) the form of notice under section 12;
(c) manner of effecting disraint;
(d) custody, preservation and sale of distrained properties;
(e) deduction from the sale proceeds under section 32;
(f) investigation of the claim by persons other than the defaulter to any right or interest in distrained properties and for the postponement of the sale pending such investigation;
(g) immediate sale of perishable articles;
(h) fixing the rages of deduction on account of the cost of sale of distrained properties;
(i) proclamation and conduct of sales;
(j) recovery of the expenses of proclamation and sale;
(k) d
Notwithstanding anything contained in this Act, all assets, rights and liabilities of the Cochin Co-operative Land Mortgage Bank Limited, subsisting at the commencement of this Act shall continue to be the assets, rights and liabilities of that bank and the provisions of the Cochin Co-operative Land Mortgage Banks Act XXV of 1111, shall apply with respect to such assets, rights and liabilities.
(1) The Kerala Co-operative Land Mortgage Banks Act, 1960 (1 of 1960), is hereby repealed.
(2) Notwithstanding such repeal, all appointments, rules, orders and transactions made, notifications and notices issued, and suits and other proceedings instituted, under the Act hereby repealed shall, so far as may be, deemed to have been respectively made, issued or instituted under this Act.
(3) The regulations made by the Board of Directors of the Kerala Co-operative Central Land Mortgage Bank Limited under the Act repealed by sub section (1) shall, in so far as they are not inconsistent with the provisions of this Act and the rules made thereunder, continue in force until altered or rescinded under this Act.
(4) The bye-laws made by any primary land mortgage bank before the commencement of this Act shall, in so far as they are not inconsistent with the provisions of this Act and the rules made thereunder, continue in force until altered or rescinded under
In this Act, unless the context otherwise requires,-
(a) 5 ["Agricultural and Rural Development Bank"] means the Kerala Co-operative Central Land Mortgage Bank Limited, registered under section 10 of the Travancore-Cochin Co-operative Societies Act, 1951 (X of 1952), which shall hereafter be known as the 6["Kerala State Co-operative Agricultural and Rural Development Bank] Limited".
(b) "Board" means the board of directors of the Kerala Co-operative 7 [Agricultural and Rural Development Bank] Limited;
(c) "committee" in relation to a primary bank, means the Board of Directors or board of management of the committee of management or the governing body to which the management of its affairs is entrusted;
(d) "Co-operative Society" means a Co-operative society registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969);
(e) "Gehan" means special charge on movable or immovable property. In favour of
(1) With the previous sanction of the Trustee, the Board may issue debentures of one or more denominations for such period as it may deem expedient on the security of Gehan or mortgage or hypothecation held or mortgages, charges or hypothecation partly held and partly to be acquired or other assets taken by the Agricultural and Rural Development Bank and its other assets and Gehan or mortgages or hypothecation transferred or deemed under the provisions of section 13 to have been transferred by the primary Banks to the 13 [Agricultural and Rural Development Bank].
(2) Notwithstanding anything contained in sub-section (1), in respect of loans guaranteed by the Government and granted to any person or to any body of persons, whether incorporated or not, and whether or not established by or under any law for the time being in force, if such a body is approved by the Government, the Board may, with the previous permission of the Trustee, issue debentures, on the strength of such Go
(1) Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 (21 of 1969), the Board may, with the prior approval of the Government and subject to the regulations made under this Act, borrow money by issue of bonds:
Provided that the issue of the bonds shall be in conformity with such directions or instructions as may be issued by the Reserve Bank of India or the National Bank for Agricultural and Rural Development from time to time.
(2) The bonds shall be in the form of promissory notes and shall be repayable on the expiry of such period or periods from the date of issue thereof as may be approved by the Reserve Bank of India or the National Bank of Agricultural and Rural Development:
Provided that the Board may repay the amount due under the bonds at any time before the period or periods so fixed, after issuing a notice in such manner as the Board may direct in that half to the holders of the bonds.
(3) Notwithstanding anything
(1) The Registrar or where the Government appoint any other person in this behalf, such person, shall be the Trustee for the purpose of fulfilling the obligations of the 14 [Agricultural and Rural Development Bank] to the holders of debentures issued by the Board and for the purpose of section 13.
(2) The Gehan created and mortgages and hypothecation executed in favour of the 15 [Agricultural and Rural Development Bank] and other Gehan, mortgages, and assets transferred or deemed to have been transferred under the provisions of section 13 to the Agricultural Development Bank shall vest in the Trustee from the date of such creation, execution or transfer.
(3) The holders of the debentures shall have floating charge on all such Gehan, mortgages, hypothecation and assets, on the amounts paid under such Gehan, mortgages, hypothecation and remaining in the hands of the Board or of the Trustee and on the other properties of the Agricultural Development Bank.
(4) The p
The principal of, and the interest on, the debentures issued under section 3 or bonds issued or loans raised under section4, to such maximum amount as may be fixed by the Government from time to time and subject to such conditions as they may deem fit to impose, shall carry the guarantee of the Government.
The Board may, subject to the approval of the Trustee, make regulations not inconsistent with the provisions of this Chapter-
(a) for fixing the period of debentures and the rate of interest payable thereof;
(b) for calling in debentures after giving notice to debenture holders;
(c) for the issue of new debentures in place of debentures damaged or destroyed;
(d) for converting one class of debentures into another class of debentures bearing a different rate of interest; and
(e) generally for carrying out the provisions of this Chapter.
Subject to the provisions of this Act and the rules made thereunder, it shall be competent for the 17 [Agricultural and Rural Development Bank] and the primary Banks to advance loans for the following purposes, namely:-
(a) land improvement and productive purposes;
Explanation.- Land improvement and productive purposes, means any work, construction or activity which adds to the productivity of the land and, in particular, includes the following, that is to say,-
(i) construction and repair of wells, (surface wells, dug-cum-bore wells, tube wells and filter points), tanks and other works for the exploitation for the purpose of agriculture, or for the use of cattle employed in agriculture and all type of irrigation;
(ii) renewal or reconstruction of any of the foregoing works, or alteration therein, or additions thereto;
(iii) preparation of land for irrigation;
(iv) drainage, reclamation from rivers or other waters, or protection from
(1) This Act may be called the Kerala State Co-operative 4 [Agricultural and Rural Development Bank] Act, 1984.
(2) It extends to the whole of the State of Kerala
(3) It shall come into force at once.
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