ACTS AND ORDINANCES OF KERALA 1960

1960 · State unknown · central · act_text

Sections (34)

3 · Admiss10n of land mortgage banks regzstered under the Madras Co-operative Soczettes Act, 1!132, as members of the CenLral Murtgage Bank.-Notw1thst .ndmg anythmg contamed m the Travancore-Cochm Co-operative Societies Act, 1951, 1t shall be lawful for the Central Land Mortgage Bank, to adm1t as its member a co-operative land mortgage bank registered or deemed to be registered under·the Madras Co-operative Soc1et1es Act, 1932; and anv such admiss1on madP before the commencement of this Act shall be deemed to have been lawfully made.

4 · Issue of debentures by the Board.-(1) (a) W·th the previous sanctiOn of the Tru:.tee, the Board may issue debentures of one or more denommat10ns for such per1od as 1t may deem expedient on the security oi the mortgages taken by the Central Mortgage Bank and 1ts other assets and mortgages transferred or deemed under the prov1s1ons of section 23 to have been transferred by the primary mortgage banks to tne Central Mortgage Bank.

5 · Appointment of Trustee and his powers and functwns.(1) The Reg1sLrar, or where the Government appoint any other person m this behalf, such person, shall oe the T for the purpose of securing the fulfilment of the obhgat10ns of the Central Mortgage Bank to the holders of de bent 1ssued by thP. Board. The mortg<4ges executed m favour of the Central Mortgage Bank

7 · Power of Board to make regulation.s.-The Board may, subject to the approval of the Trustee, make regulations not mcons1stent w1th the provisions of th1s Chapter,-

8 · Distraint when to be made.-{1) If any instalment payable under a mortgage executed m favour of the Central Mortgage Bank or a pnmary mortgage bank or any part of such instalment has remamed unpaid for more than one month from the date on which 1t fell due, the Board or the Committee may, m addition to any other remedy available to them, apply to the Registrar or to any other person appointed by the Government under sectwn 3 of the Travancore-Cochin Co-operative Socidies Act, 1951, or under section 3 of the .Madras Co-operative Societies Act, 1932, to assist the Registrar. for the recovery of such instalment or part by distramt and sale of the produce of the mortgaged land mcluding the standing crops thereon. On receipt of such application the Registrar or such other p may, notwithstanding anytlung contamed in the Transfer of Property Act, 1882, ( 4 of 1882) , take such action as is necessary to distrc.in and sell such produce:

9 · Distraint how to be e.frected.-(1) Before or at the time when a distraint 1s made under section 8, the distramer shall serve or cause to be served upon the defaulter a written demand specifymg the amount for wluch the distraint is made.

10 · Sale of property distrained.- (1) lf, within fifteen days from the date of service of the demand referred to in sectwn 9, the defaulter does not pay the amount for which the distraint Y.as effected. the distramer may sell in auction the distrained . property or such part thereof as may in his opimon be necessary to satisfy the demand together with the expenses of the distraint and the costs of the sale.

11 · Power of Government to make rules.-The Government may make rules not inconsistent w1th the provisions of this Chapter,-

12 · Power of sale when to be exercised.-(!) Notwithstanding anything contained in the Transfer of Properly Act, 1882 (4 of 1882), where a power of 5ale without the intervention of the court is expressly conferred on the Central Mortgage Bank or a primary mortgage bank, by the mortgage deed, the Board' or the Committee of such primary mortgage bank, or any pe;son authorised by the Board or such Committee, as the case may be shall, in case of default of payment of the mortgage money or any part thereof have power, in addition to any other remedy available to them, to bring the mortgaged property to sale with-

14 · Application to set aside sale on deposit and confirmation of sale in default or on dismissal of such appLication.-(!) When a mortgaged property has been sold under this Chapter, the or any person havmg a right or mterest therein affecteo by the sale, may, at any t1me within thirty days from the date of sale, apply to the Board or tne Committee of the pr1mary mortgage bank concerned, as the case may be, to have the sale set aside on h1s depositing at the office of tne concerned bank-

15 · Distribution of sale p1·oceeds.- (1) The proceeds o£ every sale under this Chapter shali be applied by the sale officer, first m payment of all costs, charges and expen&es properly mcurred by htm a& mcidental to the sale or any attempted sale; secondly, m payment o'f all mteresl due on account of the mortgage In cousequence whereof the mortgaged property was sold, thirdly, in payment of the prmcipal money due on account of the mortgage; and lastly, the residue, if, any, shall be paid to the person . proving himself interested in the property sold or. tf there are more !.>UCh persons than one, then to such persons, according to their respective interest therein or upon their jomt recetpt.

16 · Certificate to purchaser.-Where a sale of mortg 1ged property has berome absolute, the sale officer shall gr:..nt a certificate specifying the property sold and the name of the

18 · 1Right of- Central Mortgage 'Bank ·01' primary mortgage bank to purchase the mortgaged property ·rt sa1e.-lt shall be competent to the Central Mortgage, Bank-or ,a pr1mary mortgage bank to ,purchase the mortg .. ... ged ,property sold under this Chapter, hut the property so purchased . s shall· be disposed, of by such bank by sale w1thin such period as may be fixed,by the Trustee.

20 · Title of,purchaser not to be tmpeached on the ground of irregularity etc.-When a sale has been made irt the professed exercise of a power of sale under section 12 and has been confirmed under sub-sectwn (3) of section 14, the title of the pur-chaser shall not be impeachable on the ground that no case had ari<>en to authorise the sale or that due notice was not given·orthat the power was otherwise Improperly or Irregularly exerciSed,:,but any person damntfied by an unauthorised or improper or irregulal' ex:erctse of the' power 5hall have his remedy in damages agamst the Central Mortgai;e Bank or the concerned primary mortgage bank, as the case may be.

21 · Appointment of sale of]ice1·.-The Registrar may appoint sale officers for the purpose of conducting.sales under this Chap· ter.

23 · Mortgages ezecuted in favour of mortgage bank, etc .. .. to stand vested in Central. Mortgage Bunk.-The mortgdge5 executed m favour of, and all other asbets transferred to a prJmary, mortgage bank by the members thereof shall, Wtth effec1 from the dine of such executiOn or transfer, be dt.emed to have been transferred by such pnmary mortgag..: bank lo the l.entt·al Mo1.t· gage Bank.

25 · Power of Board or of Trustee to dtrect distraint and sale of produce and the sale of mortgaged property, etc.-Cl) The Board or lhe may d1rect the Cumm1ttee of a primary mortgage bank to take action against a defaulter under section 8, sect10n 12, or seclion 24 and 1f the Committee neglects or fails to do so, the Board or the Trustee may take such action.

26 · Bank's right to tmprovements effected by lessee.-Notwithstandmg anything contained in the Kerala Compensation for Tenants Improvements Act, 1958, the improvements, If any, made subsequent to the date of the mortgage by a lessee of pro· perty mortgaged to the Central Mort3age Bank or a primary mortgage bank, as the case may be, shall be treated as accesSion to the mortgaged property and be available to such Bank for the reahsation of the mortgaged amounts

27 · Mortgage not to be questioned on insolvency of mortgagor.-Notwithstandmg anythmg contamed in tht:: Insolvency Act, 1955, a mortgage executed in favour of the Central Mortgage BanK or " pnmary mortgage bank, the case may be, shall not be callt:d m quPstion on the ground that it was not execu 1ed in good faith for valuable considt·ralion or on the ground that 1t was executed 1n order to give suc.h mortgage bank a prefere11ce

28 · Priority of mortgage over ceTtain claims of the Government.-Cl) A mortg'lge executed in favour of the Central Mortgage Bank or a primary mortgage bank, as the case may be, after the comme.1cement of this Act, have priority over any cloim of the Government arising from a loan under the Land Improvement Loans Act, 1883 (19 of 1883), or the Agriculturists' Act, 1884 (12 of 1884). or Lhc Cochm Agl'lcultural Improvement Loan!:> Act, IV of 1093 or the Travancore Land lmprovemenb and Agricultural Loans Act (Travancore Act IX of 1094), granted after the execution of the mortgage.

30 · PoweT to summon witnesses and requisition documents.-(1) Subject to such restrictions, limitations and conditlons as may be prescribed, the Registrar and officers subordinate to the Registrar who are authorised by him in this behalf by general or special order m writing, and such other officials engaged in the relief of rural indebtedness or officers of co-operative bank.s which are reg1stered or deemed to be regis.ered under the Travancore·Cochin Co-operative Soc1eties 1951,

31 · Regtatratwn ofdocwnents on behalf, of the · Cen· tral Mortgage Bank or'of a p1 imary mortgage bank. -(1), Not.: withstanding anything contauied'-in.the Indian Reglstration

32 · Power of rno1·tgage bank . t to receive moneys and g1·ant valid discha1·ges notwzthsfaltdmg assignment of mortgage deeds to the Central Mortgage Bank -Notwtthslandmg that a mort-. gage executed 111 favour of a prtmary mortgage bank has been transferred, or is deemed under the .P· OVISions of section 23 to have been transfer1ed, to the Central Mort!:,age Bank-

33 · Special provtswns fo1· mortgages, executed by managers of ·Hmdu fam.zltes, karrr.navans oj -Mmumakkothc.yam Ta1·wads·or Tavazhts or of Nambudtrt llloms, etc.- (1) Where a mortgage executed 10 favour of the Central Mortgage Bank or a primary mortgage bank, or after the commencement·of-tlus Act, ts called 10 quPstlOn on the ground that 1t was execuifd by the manager of ajomt Hmdu famtly or the karanavan of a Marumakkathayam tarwad or tavazhi or of a Nambudlri Illom, or·the manager of a Thiyya or Ez11ava fam1ly, or the ejaman or e3amanathi of an ·Ahyasantana family, for a purpose not bind10g on the members thereof, whether majors or nunors, the ·burden of prov10g the same shall, notw1Lhstandmg any law to the contrary,·be·on the party ratsmg it.

35 · Proof of documents or entries in documents.-The Central M"'rtgage Bank or any primary mortgage bank may grant copies of any document obtained and kept 1t m the course of its busmess or of any entnes in such documents; and any copy so granted when certified in manner as may be prescribed, be admissible in evtdence for any purpose in the same manner and to the same extent as the original document, or the entr1es therem, as the case may be.

36 · Chapters III and IV to apply to loans advanced by mortgage banks from funds not boTTowed from the Central Mortgage Bank.-'fhe provisions of Chapters III and IV shall apply also to loans advanced by primary mortgage banks frum funds which have not been borrowed from the Central Mortgage Bank and loans taken over by the Central M01 tgage Bank from the Travancore Credit Bank.

37 · Service of nottce under. the Act.-Whenever under the provisions of Lhis Act, notice 1s required to be glVen to any person in wr1Ling, 1t shall be sufficient to send such noilce by registered post. ,

38 · Sections 102, 103 and rules under section 104 of' the Transfer of Property Act, 1882, to apply to such nottces -The provisions of sections 102 and 103 of the Transfer of Property Act, 1882 (4 of 1882), and of any rules made by the H1gh Court under section 104 of that Act, for carrymg out the purpo!>es of the satd sections. shall apply, so far as may be, m respect of all notlces to be served under this Act.

39 · Officers of the Bank not to bid at sa.les.-At any sale 'of movable or immovable property held under the proviswns of this Act lD order to I'ecover any money due to the Central Mortgage Bank or any pnmary mortgage bank, no Director, Secretary or other officer of the Central Bank or such

34 · 28 2S

40 · Delegation of powers bll Board . . . ..::rhe Board may, If it thinks fit, delegate all or any of Its powers under sections 12, 19 and 25 to any executive committee constituted by it and consisting of two or more of its member:-.

41 · Starttng of branch banks.-The Board may, from tlme to time, w1th the previous sanction of the Reg1!:>trar, start branches of the Central Mortgage Bank at such convement centres as may be dec1ded upon and carry on operations through them.

42 · Powers of Board to make regulations.-Notw1thstantlmg anythmg contamed m tho Travancore-Cochin Co-operative Societies Act, 1951, or the Madras Co-operative Societies Act, 1932 01 the rules made under the sa1d Acts, the Board shall ha'-(e general power of supervtsion over the primary mortgage banks and may make regulations not with this Act or the rules made thereunder-

44 · Repeals .-The Madras Co-operative 'Land Mortgage Banks Act, 1934, as in force m Malabar and, subject to th<! provisions of section 43, the Cochin Co.:operauve Land Mortgage Bank Act, XXV of 1111, are hereby repealed.

ACTS AND ORDINANCES OF KERALA 1960

Sections (34)

Subordinates (0)