The Assam Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1977

Regi itcre  1 No.  A— 12

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The Assam Ga ze tte

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EXTRAORDINARY

PUBLISHED BY AU fH OB IT Y
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wt 61, 2 <x, 1977, 12 T5H, 189>
<•  61, Dtapav, Ma nda y, 2nd M ay , 1977, 12th Va iaa kh a,

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1899 (3 E.)

GOVERNMENT OF ASSAM 

ORD ERS BY THE GOVERNOR

LEGISLATIVE DEPARTMENT

NOTIFICATION 

The 2nd May 1977

No.LJL.143/75/70.—The following Act of the Assam Legislative ' Assembly 
which- received the assent of the President is hereby  published for general 
iafoTmatioh.



300 THE AS SA M GAZETTE, EXT RAORDIN ARY, MAY 2, 1977 -

ASSAM ACT VII OF  1977 . C
(R eceiv ed  th e as se nt o f th e Pre side nt  of  Ind ia on  2nd May

1977)

TH E ASSAM AG RICU LT UR AL  CR ED IT OPERATION S AN D 
MISCELLANEOU S PROVISION S (BANKS)

ACT , 1977

An

Act

to make prov ision s to faci lita te ade qua te flow of  cred it for  agri­
cul tural prod uc tio n and deve lopment through banks and  other ins titu­
tional credit agencies and  for  ma tte rs connected the rew ith an d,  
or, incidental thereto .

Be it enacted in the Twenty-ei ghth  year of  the  Rep ubl ic of 
Ind ia as follows :—

CH AP TE R I 

Pre liminary

Short
tit le,  extent 
a« d comm e- 
Bcemcnt.

1. (1) This Act may be called  the Assam Agr icul­
tural  Credi t Opera tions and Miscellaneous Prov i­
sions (Banks) Act,  1977.

(2) It  shall extend to the  whole of the  State 
of Assam.

(3) It  shall come into  force  from  such date 
as the  State Government  may , by not ificatio n in 
the Official Gazett e, app oin t in this  behalf and 
diff eren t dates may be app oin ted  for  different 
provis ions of  'he  Act  and  for different por tions of 
the State.

2. In  this Act, unless the context otherwise  
requires,.—

(a) “ Agr icultur e” and  “ agr icu ltural  purpose” shall 
include mak ing lan d fit for  cul tiva tion , cu tiva tion  
of  lan d, imp roveme nt of  land, land  includin g deve­
lopm ent of  sources of irr iga tion, rais ing and  ha r­
vesting of  crops,  hor ticulture , fore stry , planting  and 
farm ing and cat tle  b reed ing,  anim al hu sbandly , dairy 
farm ing,  seed fa' rning, pisc icul ture , apicu l­
ture, ser icu l'ur e, pig , ery,  pou ltry  farm ing and  such 
o'he r activities as are genera lly carried



TH E ASSA M GAZ ETTE, EXTRA OR DI NA RY , MAY i ,  A ,

on by agr icultur ists , dairy farm ers, cat tle breeders, 
poult ry farm ers  and othe r cate gories of persons 
engaged in similar activitie s inclu ding marke ting of 
agricultura l produc ts, their s ota ge  and  transp ort  
and  the  acqu isition of implem n s and  machinery in 
connection with  any  such activ i y ;

(b) “ Ag riculturi st”  means a perso n who is enga­
ged in Agriculture  ;

(c) “ Ag ro- Ind ustrie s Co rporat ion”  mear.s  a 
com pan y or oth er body corpo rate one of  th e prin cipal 
objectives of which is to undertake  activitie s connec­
ted with or  intend ed for  t he  developmen t of  agr icul­
tur e and  not  less  than  fifty-one percen t of the paid-up 
sha re cap ita l of which is held  by the  C en tra l Govern­
ment or by any Sta te Goveinmen or pa rt  y by the 
Ce ntr al Go ver nm ent  and  partly by one or mo re Sta te 
Governments ;

(d) “Ba nk ” means —

(i) a banking  com pany as defined in the Banking 
Regulat ion  Ac t, 1919:

(ii) the Sta te Ban k of  In di a cons tituted  under  the 
State  Bank of I nd ia  Ac t, 1955 ;

(iii) a subs idiary ban k as defined in the State 
Bank of India  (Subsidiary Banks) Act, 1959 ;

(iv) a corresp onding new ba nk  constitu ted 
under the Banking Companies  (Acquisi tion and  
Trans fer  of Undertakings) Act,  1970 ;

(v) a Regiona l Ru ral  Bank establish ed unde r the 
Regional Ru ra l Banks Act, 1976 ;

(vi) any banking  ins titu tion no' ified by the  
Central Government  under  Sect ion 51 of the 
Banking Reg ula tion  Act , 1949 ;

(vii) Agricu ltural Refinance and  Development 
Corpo rat ion  con stituted under  the Agr icultur al 
Refinance and  Developmen t Corpo rati on 
Act, 1963 ;

30 i

(viii) the  Agro-In dus tries Co rpo rat ion  as de­
fined in sub-sect ion (c);

(ix) the  Agricultura l Finance Corpo rati on 
Ltd.,  a com pan y incorp ora ted  und er the 
Com panies Act , 1956 ; and



302 THE ASSAM GAZETTE, EXTRAORDINARY, MAY 2, 1977

(x) othe r finan cial ins titu tion ! notified  
by the  Sta te Governm ent in  the Official 
Gazette  as a  bank  for  th e purpose of this 
Act.

(e) "Co-o perativ e Society”  means a Co­
ope rat ive  Society registe red or  deemed 
to be regis tered  unde r the Assam Co­
operativ e Societies Act , 1949 (Act I of  
1950) the  object of  which ii to  prov ide 
financial assistance as defined in  clause 
(f) of  this  sect ion to its mem bers  and in ­
cludes a Co-operativ e La nd  Mortgage/ 
Develop men t Bank; and

(f) "finan cia l assis tance”  for  the  purp ose 
of  this Act means assistance granted by 
way of  loans,  advance , gua ran tee  or  
otherwise for agr icu ltur al purp oses .

CH APTER II

Righ ts of Agr iculturist ! to alienate  land / 
interest in lan d in favo ur of Banks.

Re mo va l of 
re it ri cl io ai  
on alimi- 
ati on .

3. Notwi ths tan ding any thin g con tained  in any  
law for  the  time being in force or any  custom 
or  tradit ion , it shall be lawfu l for  an  ag­
ricu ltur ist whose  rights of  alienation  of lan d or  
of  any intere st therein  are  rest ricte d to  alie nate  the 
land or  his intere st the rein , inclu ding  by creation 
of  a charge or mortga ge on such  lan d or inte rest  
in favour of  a bank for  the  purpose of obtaining 
financial assistance from th at  bank  sub ject  to res­
trict ions  imposed on disposal of  such lan d in 
section 4.

State Gover - 4. Notwithstand ing  anyth ing c ontained  in any  law 
nm en t m* y fo r  the time  being in force, the  Sta te Gov ernment may, 
tiorTreit agri-by notif icati on in the  Official Gazet te veit any class o r 
eu ltnr is tj n ot  classes of  agriculturi sts  no t having rights  of  aliena- 
h*vin j »li»n-tion in land or  any interest therein , with righ ts of  
able right! alienation includ ing the  righ t to crea te a charg« or 
rights.SUCh m o r t 8a gc  ’ on  s u c ^ land or  inte rest  in  fav our of  

ban k for the purpo se of  obta ining financial assis ­
tance fro m that  bank  subject to such  rest rict ions
as may be specified in the  not ificatio n.

Cha rg e o» 
cr sp  an d 
ot he r m«v- 
ab le pr o­
pe rty in 
fav our of  a 
bank-

5. (1) It  shal l be lawfu l for an agriculturi st to  
create  a  charge on the  movable prop ert y owned by 
him  or  on the cro ps rais ed by him, standing or  
otherwise or other produc e from  lan d cult ivated 
by him , to the  extent of  his intere st therein  in 
favour  of a ban k to  secure finan cial  assistance from



THE ASSAM GAZETTE, EXTRAORDINARY, MAY 2, 1977

the ban k notwithstand ing  that  he may no t be owner 
of the land on and  from which the  c rop  is raised .

303

(2) Notwi thst and ing any thin g to the  con trary 
in the Assam  Co-operativ e Societies Act , 1949 
(Act 1 of 1950) or any oth er law for the time 
being in force , no charge in  respect of  financial 
assistance extended  by a Co-ope rative Society to 
an  agri cul turi st sha ll have pr ior ity  over a charge 
on the  cro ps  rai sed  by him, standing or otherwise, 
or any othe r movable prop ert y in respect of any 
financial assistance given to him by a ban k, pr od de d 
the financia l assis tance  made by the bank  is prio r 
in po int  of time  t o that  of the  financial assistance 
extended  by the Co operativ e Society ;

(3) A bank  may dis tra in and sell through an 
officer designated in this behalf by the Sta te Go vern­
ment the crop or  other produce or other movable 
prop er ty  charged to that  bank  to the extent  of  the 
agriculturist’s inte rest  therein and  ap prop ria te  the 
proceeds  of such sale tow ards all moneys  due to 
the ban k from that  agriculturi st.

*

C re at io n  of 6. (1) Where an agriculturi st create  a charge on 
fa iu t^ in  fav-  â n < ^’ o r  a n 7 o t her  immovable  pro perty  which he 
ou r of  a ba nk O w n s  o r  in  which he has an inte rest  in respect of 
by de clar a-  any financial assis tance  given to him by a ban k, he 
tio n.  m a y make a declara tion  on the lines of  the form

set ou t in the  Schedule here to or  as nea r thereto  
as circu mstances* permi t, declarin g th at  he thereby 
crea tes,  in fav our of the bank , charge on such land 
or his interest ther ein,  or  othe r imm ovab le pro perty  
as the  case may be, to  secure the finan cial  assis­
tance given to him  by the ban k ;

(2) A dec laration mad e un de r sub-sect ion (1) 
may be vari ed fro m time  to time  by the agricul­
tu ris t with the  consent of  the  bank  in whose favour  
the declara tion  has  been  made . Such  var iation 
sha ll tak e effect from such date on which  the 
var iat ion , if  it has  been  an orig ina l dec lara tion , 
wou ld have effect under section 9.

CHA PTER III

Charges  and Mortgages in fav our of  banks 
an d th ei r prio ritie s.

Re mo va l of  7 - Notwi ths tanding any thin g to the  con tra ry 
di sa bi lit y in con tain ed in the Assam Co-operativ e Societies Act, 
cre at ion of  1949 (A ct 1 of 1950) or  any othe r law for the  time 
charg es an d bein g in force and  notwithstand ing  th at  any land  
mortgager. o r  in t e r e s t  the rein stan ds alread y charged or mo r­

tgag ed to a Co-ope rative Society it shall  be lawful



Aiiuxiiy ui <
charge* and • 
mortgages in a i

favour of 
Government 
bank and a 
Co-operative 
Society.

304 TH E AS SA M GAZE TT E, ' EX TR AO RD IN AR Y,  MA Y 2, 1»??

fo r an  agriculturist to create  a charge or  mortgage x,
on such  land or  inte rest  th erein in favo ur of  a bank  
as secu rity  for any  financial assistance given to the 
agriculturi sts  by the bank .

8. (1) No twith sta nd ing  any thin g to  the c on tra ry 
ny law for the time being in for ce ,—

(a) no charge or  mortgage cre ate d on auy 
land or inte rest  therein , afte r the  comm - 
encement of  this Act , in favour of  the 
Government  or a Co-o pera tive  Society, 
shall hav e priori ty ove r a cha rge or 
mortga ge on such land or intere st cre a­
ted  by an agriculturi st in favour of  a 
bank  as securi ty for  financial assis tance 
given to the  agriculturist by the bank 
af te r th e comm encement of  this Act and  
pr io r to the  c harg e or  m ortgage  in favo ur 
of  the Government  or  the Co- operative 
Society ; and

(b) any  charge or  mortgage  created on any 
land or  interest therein  in favour of a  bank 
in respect of finan cial  assis tance  given to 
an  a gricul tur ist by that  ban k shall have  
pr io rit y over  any  oth er charge or mo rt­
gage th at  may  have been  created over 
such lan d or  interest in fav our of  any 
perso n oth er tha n the  Gov ernm en t, a 
co-operative society or any oth er ban k, 
pr ior  to the  da te on which the charge 
or  mortgage was created  in favour of  
the  bank.

(2) Where diffe rent  charges or mortgages 
over the same land or  interest there in have been 
created by an agri cul turi st in fav our of  the  Gover n­
ment, a co-opera tive society or a bank  or  more 
tha n one bank any such  c harge or mortgage cre ate d 
as secur ity for  financia l assis tance given 
by the Government , Co-opera tive  S o c i e t y  
or the  bank  or  ban ks by way of  term  
laan for deve lopm ent purp oses  shall have 
priori ty over other charges or mortgages or mor t­
gage cr eated in favou r of  the  Governm ent,  co-opera tive  
society or  any  of  the banks,  pro vid ed pr io r notice 
of  any such financia l assistance by wa y of term  
loan for development  purposes had been given to 
such Government , co-opera tive  society or ban k and  
such Goverment , co-o pera tive  society or  ba nk  has  
conc urred in such financial assistance, and where 
more than  one such cha rge  or  mortgage is as 
securi ty for  finan cial assistance given by way of

e>



THE ASSAM GAZETTE, EX TR AO RD INAR Y, MA Y 2, 1977 305

term loan , the charges  or mortgages by way of  
security for term loan  for  development  purp oses  
will rank for priori ty in accordance with  the da te 
of  the ir creatio n.

Exp la na tion :—For  the purposes of  thi s section, 
“ te rm  loa n for develop men t pu rp os e”  sha ll mean 
finan cial assistance which would  general ly lead  to 
improve men t on agr icu lture and  or  bui ldin g up of 
assets in agr icu ltur e but shall not include financial 
assistance for  mee ting  working cap ita l expenses, 
seasonal agr icu ltur al opera tion and marke ting  of  
crops.

(3) Nothing in this sec .ion shall  app ly to 
borrowings only from  one or  more co-o perativ e 
societies incl udin g land mortga ge bank .

Re gis tra tio n 9.  (1) Notwi thst and ing a nything con tained in the 
• f  charg e India n Reg istr atio n Act, 1908, a charge in respec t o f 
a« d mor t- w h ic h  a decla rat ion  has been made under sub-section 

fa vo ur 1 o f 0 )  section 6 or  in respect of  which a variation
Banks. has been mad e under sub-section  (2) of  tha t section 

or a mortgage executed by an agr icu lturis t in favour 
of  a b ank i n respect of  financial assis tance  given by 
that  b ank , sha ll be deemed to have been duly regis­
tered in accordance with  the provisions of  that  Act 
with effect from the da te of such charge, varia tion 
• r  mortgage as the  case may be, pro vided th at  
the ba nk  sends to the  Sub-Registra r with in the local 
limits of  whose ju ris dic tio n the  whole or any pa rt 
of the pro perty  charged or  mortga ged  is situated  
with in the time  stip ula ted  by the State Governme nt 
for this  pur pose by registered post  acknowledge­
ment due , a copy of  the doc ument  creatin g such 
charge, va ria tion or mor tgag e duly cer tified to be 
a true copy by an  employee of  the  bank  au th o­
rised to sign on its beh al f;

(2) The  Sub -Re gist rar rece iving the  d eclara tion  
in respect of  a cha rge  or  var iat ion  or a mortgage 
ref err ed  to in sub-section (1) shall, as imm edia tely  
as practicab le on rec eip t ther eof , reco rd, in a 
reg ister to be ma intain ed in this be ha lf the  fact 
of the  rece ipt  of  such dec lara tion , va ria tion or 
mortgage for  regi stra tion .

Notiaf of  10- Whenever  a charge or a m ortgag e on loan
ch arge  or or  intere st the reia is created in favour  of  a bank 
mo rtg age ^ y  an agri cul tur ist the bank  may give int ima tion  
fav our of™ a t o  Sub-Deputy Collector or such oth er revenue 
bank  in the o ff ic ia l as may  be designated in this  be ha lf by 
Rec or d of the State Gover nm ent , of  the  partic ula rs of  the 
Rights. charge or mortgage in its favour . Th e Sub-Deputy



306 TH E AS SA M GA ZE TT E, EX TR AO RD IN AR Y,  MAY  2, 1977

Res tr ic tio ns  
on cre ation  
of  tenancy  
by an  ag ri • 
cu ltu ris t 
bo rrow er .

Re mo va l 
ba r to

Col lector or the oth er revenue offic ial shall  make 
a no te of  the  pa rti cu lar s of  cha rge  or  mortgage 
in the  Rec ord  of  Righ ts relatin g to the  land over 
which the charge or mortgage is created.

11. (1) Notwi ths tan ding any thin g con tained  in 
any  law for the  time  bein g in force, an  agr icul­
turi st who  has avail ed him sel f of  financial assis tance  
from a bank  by creating a charge or mortgage  
on land  or in ter es t the rein , shall  not, so lon g as the 
financia l assistance continues  to be ou tstandin g, lease 
or crea te ten anc y rights  on such land or interest  
there in witho ut pr io r p ermission in writ ing of  the 
bank  if he has not alread y leased or created  tena ncy 
rights  thereon at  the time  of  ava iling if  the finan­
cial assistance from  the  bank .

(2) Any lease gra nte d or  tenanc y rights 
created in contr avention of  this section shall  be 
void.

CH APTER IV

A rra n g em en t fo r  R ecovery  o f  d u es b y  B an k s

12. No thing  in any law shal l p revent  in any  ma nner 
at ta ch m en t & ban k from causing  any land or  any  inte rest 
andCs5eenbv ’herein charged or mortgaged to it by an  agricul- 
process o f ' turi st to secure any  financia l assistance, to be 
co ur t. at tach ed  and  sold through a civil cou rt and  app­

lying the  proceeds  of  such sale tow ards all  moneys 
due to it from  agriculturi st including the costs 
and expenses as may be award ed by the  cour t; 
provided th at  such attach ed land should be sold 
only to the  Gover nm ent  or  any Agricu ltural Fa r­
ming Co rporati on  or dese rving  landless cul tiva tors  
to be so classified by the loca l Revenue au thor i­
ties an d such land in specified triba l blocks  shall  
be transf erred only to per son s eligible to  acquire  
or possess lan d unde r Ch apter  X of  the  Assam 
Land and Revenue  Regulatio n, 1886.

Re cover o f (1) An  officer notified by the  State
dues oZa* G overn ment as the prescr ibed  au tho rity  for the  

ba nk  th ro u g h p u rp o se  of  this section may, on  the app lica tion 
a Prescr ibed  of  a ba nk  make  an  o rder on any agriculturi st of  his 
au thor ity . h e ir  or legal repr esentative  direc ting  the  pay ment 

of  any  sum due  to the  bank  on accoun t of  fina n­
cial assistance avail ed of  by the agriculturi st,  by 
the  sale of  any  land or any interses t therein 
upon  which the  paymen t of  such money is c harged  
or  mortga ged  provide d that no ord er shall be 
mad e by the  p resc ribed autho rity under this section 
for  the sale of  any land or any inte rest  therein  
or any  oth er immovable pro perty  upon which the



THE ASSAM GAZETTE, EXTRAORDINARY, MAY. 2, 1977 367
*

pay ment of  money cha rged or mortga ged  unless 
the  agri cul tur ist or the he ir or legal  rep resentativ e 
or  the agr icu ltur ist,  as the case may  be, has  been  
served with a notice by the pre scr ibe d authority  
calling upon him  to pay  the money due;

(2) Every  ord er passed by the pre scr ibed 
autho rity  in term s of  sub-sect ion (1) shall be 
deemed to be a decree of a civil court  and  shall 
be executed in the  same ma nner as a decree of 
such co ur t;

(3) No thing in this  section shall de ba r a bank 
from  seeking to enforce its righ ts in any other 
ma nner ope n to it und er any oth er law for  the 
time being in force.

R ig ht  of a 14. (1) Notwi ths tan ding any thin g con tained  in 
ba nk  to ac - any law for the time  being  in force , a bank  shall 
di*i r e  n t  have  power to itsel f acquire  agric ult ura l land or  
im moX ble intere st therein  or any oth er immo vable pro per ty 
Prop er ty . which has been  charged  or mo rga atd  to it by . an 

agr icu ltur ist in respect of  any financial assistance 
availed of  by him, pro vided the said land or  
interest the rein or any  oth er imm ovab le pro perty  
has  been sought  to  be sold by pub lic auct ion and  
no per son  has  offered to  purchase  it for  a pric e 
which is sufficient to pay to the  bank  the  money
due  to  it;

(2) A ban k which  acq uires land or  interest 
the rein or  any other immovable pro per ty in exer­
cise of  the  power vested in it unde r sub-sect ion (1) 
sha ll dispose of  it by sale in the  ma nner provided 
in section 12 with in a per iod  to  be specified by 
the  Sta te Governme nt in this  beh al f;

(3) If  the  ban k has to lease out any  land  
acquired by it under  sub-sect ion (1), pen ding sale 
the reo f as indicate d in sub-section (2), the  per iod  
of  lease shal l no t exceed one yea r at a time  an d 
the lessee shal l not  acqu ire any  inte rest  in th at  p rop erty 
notwithstand ing  any provisions to  the  co nt rary  in 
any  other law for the  time being in force ;

(4) A sale by a bank  of  land or interest there"  
in in term s of this section shall be subject  to 
Section 4 and  any prov ision s of  any law in force 
which may  place rest rictions on purchase of  lan d 
by non-agricul tur ists  or ceiling for acqu isition of 
land or  by a person no t belonging to a partic ula r 
tribe  or scheduled caste  or frag menta tion  of  land .



308 TH E AS SA M GA ZE TT E, EX TR AO RD INAR Y, MAY 2, 197 7

Exe m pt 'on 15. Nothing in any law for the time being in 
to banks fo rc e  placing a ceiling or  limit on the hold ing of  
c t^ s^ o n  sha’l apply to a ban k acquiring land in term s
acqu isi tio n of  section 14 and holding such  land till such time  
of  la n d  in the  ba nk  is in a pos ition to sell the  lan d in th e  
excess of manner provide d in section 14 or othe rwise, at  a
ceil ing. pric e which is ade quate  to cove r its dues.

CHAPTER V

FINA NC IN G OF CO -O PE RA TIVE  SOCIETIES 
BY BANK S

ble'^o^be- Notwithstanding  any thin g contained in the
come mem-Assam Co-operativ e Societies Act,  1949 (Act lo f ’ 
be r of  a C o- 1950) or any  law for the time being in force , it 

op erat ive shall be lawful for a bank  to become a member
o c ie ty - o f a  Co- ope rative Society.

Power to Co- 17. No twithstanding anything con tained  in the 
opeative Soc ie.Assa m Co-operativ e Societies Act, 1949 (Act 1 of  
ties to bo rrow jg gQ  ) j t  s ]fa u  ^e lawful  for any  Co-o pera tive  
rom an s. §o c je ty t o  bo r r o w  from a bank .

Insp ec tio n of  i s ,  ( i )  a Bank shall have  the  right to in-  
o^iuuhreSoc' sPe c t  the books of  any co-opera tive society which 
ie ty  by  aVan k* bas eit he r applied  to the  bank  for financial assi­

stance or is ind ebt ed to the  bank  on account of
financial assistance gra nte d earl ier;

(2) The  inspectio n may  be carried  out by 
an Officer or any othe r member of  the  paid staff  
of the ban k with the  previous sanction in writ ing 
of  the Regis trar of  Co-operativ e Societies;

(3) Th e officer or any oth er mem ber of 
the  paid  staf f of  the bank, undertakin g such ins­
pect ion,  sha ll, at  all reasonable time s, have access 
to the books of accounts, documents, securit ies, 
cash  and oth er proper ties  belonging to or  in the 
custody of  the co-opera tive  society insp ected by 
him, and  shal l also be suppli ed by such socie ty 
such info rmatio n, stateme nts and  return s as may 
be req uir ed by him to assess the  financial con di­
tion  of  the society and  the safety of financial 
assistance to be made to the society or alre ady  
made to it.

Disputes  b et-  19. Q) No twithstanding anything contained in 
a Ce- a n y  o t h e r  ! a w  ô r  t i m e  being  in force, any 

op erat ive So- dispu’e touchin g the constitu tion , managemen t or 
c :ety . the business of a co-opera tive  socie ty, between a

ban k financing a co-operative society and  the



THE ASSAM GAZETTE, EXTRAORDINARY, MAY 2, 1977 309

coopera tive  society so financed , oth er than  disputes 
reg ard ing  the disc iplinary action taken by society 
or its comm ittee  aga inst  a paid employee of  the 
socie ty, shall  be referr ed  by either of  the parti es to 
the  disp ute  to the Re gis tra r of  Co-opera tive  Soci­
eties for  decision;

(2) Where any question arises  whe ther , for 
purposes  of  the forego ing sub-section, a ma tte r 
ref erred to fo r decision is a dispute or no t, the 
que stio n sha ll be decided by the Regis tra r of  
Co-op era tive Societies whose decision shall  be final.

Se ttle me nt 20. (1) If  the Regis trar is satisfied th at  any 
of dispute s, ma tte r referr ed  to him  or bro ugh t to his notice 

is a disp ute  with in the meaning  of  Section 19, 
the  Regis trar shall  decide  the dispute hirr.self or 
refe r it for disposal to a nominee  or a Board
of  nominees appointed by him;

(2) Where any  disp ute  is referred  unde r the 
foregoing sub-section for  decision to the Regis­
tr a r’s nominee or Board of  nominees, the  R egist rar  
may . at  any time, for reasons to be rec orded in 
writing, with draw  such  disp ute  from  his nominee 
or  Board of nominees and may decid e the dispute 
him sel f or refer it again  for dec ision to any 
oth er nominee or  Boa rd of  nominees ap po in ted 
by him;

(3) No twithsta nding  anything con tained in Sec­
tion 19, the  Reg istr ar may , if he thinks fit, suspend  
proceedings in regard to any  disp ute  if  the  ques­
tion at  issue between a co-opera tive society and  a 
ban k is one involving complicated  que stio n 
of  law and  fact, unt il the  question has 
been trie d by a regu lar suit ins titute d by one of  
the part ies to the dispu te. If  any ' such suit  is 
not ins titu ted  wi thin two mo nth s from  the B egis- 
tr a r’s ord er suspend ing proc eed ings , the  Regis trar 
sha ll take action as is provided in  sub-sect ion (1).

Procedure  21. The  Regis trar or  his nominee  or Board 
for hea ring of nom inees hearing a disp ute  under the  last 
of disputes. p r e c e d i n g  Sect ion shall  hea r the dispute in the  

ma nner th at  m ay be prescr ibed  by the Regis trar
in  this behalf .

Decision of 22. Wh en the dispute is refe rred fo r decis ion, 
Reg istrar or  the  Regis trar or his nominee or  the  Board  of  
his nomin?e nom inees may, aft er giving a reasonable  opportu - 
or Board  of  nity  to the part ies to the dispute to be hea rd 
nominees. m a j,s  a n  award on the  dispute,  on the expenses 

incurred by the  par ties  to the dispu te in  connec tion
with the proceedings and  fees, expenses payable  to  the



310 TH E AS SA M GA ZE TT E, EX TR AO RD INAR Y, MAY 2, 1977 -r

Re gistr ar or his nominee  or,  as the  case  may 
be, to the  Board of nominees. Such an  award 
shall  not be invalid  mere ly on the  gro un d that  
it was mad e af ter the expiry of  the per iod  fixed 
for deciding  the  disp ute  by the  Regis trar and  
shall subject  to app eal  or  review or revi sion  by 
the  Sta te Government  be bind ing on the  par ties 
to the  disp ute .

Re cov ery  o f 
mo ney aw ar ­

de d.
23. Every award  given by the  Regis trar  

or the  Regis tra r’s nominee  or the Board  of nom i­
nees unde r Section 22, sha ll, if not car ried  out, 
on a certi fica te signed by the Regis trar , be deemed 
to be a decree  of  a civil court  and sha ll be 
executed in the same man ne r as a decree of  such
cou rt.

Powers o f a  24. (1) If a Co-op era tive Society is unable to
bank to pr o-  pay  its debts to a bank  from  which  it has 
ceed against  bor rowed, by reason  of its members defaultin g 
mem bers8o fa ^ n  pay ment of  the mon ey due by th em, the bank 
Go-ope rative may direct the comm ittee  of such society to proceed 

Socie ty. against  such members by tak ing  act ion  under  the  
Assam  Co-ope rative Societies Act, 1949 (Act 1 of 1950)

(2) If  the commit t e of  the Co-o pera tive  Society 
fails to proc eed  again st its defaultin g members  
within  a p eriod of  nin ety  days from the date of 
receipt of  such dire ctio n from the  bank , the bank; 
itse lf may pro cee d aga ins t such defa ultin g members  
in which event, the provis ions of the  Assam Co­
ope rat ive  Societies Act , 1949 (Act  I of 1950), the 
rules and  the bye-laws made there un der sha ll 
app ly as if all refe renc es to the  society or  its 
comm ittee  in the said  provisions, rules and bye­
laws were refe rences to the  bank;

(3) Wh ere  a bank has  obtain ed a decree or  
award  aga inst  a Co-o pera tive  Society ind ebt ed to it, 
the bank  may proceed to recover such  money 
firs tly from  the  assets of  the  Co-op era tive Society 
and secondly fro m the  m embers  of the  Co-operativ e 
Society to the exte nt of  the ir debts due  to the 
society.

Au dit  inspec- 25. Th e Regis trar of  Co-opera tive  Societies, 
tion  and  sha ll dra w the att ention of the bank  financ ing  a 
"o r?  of sod - Co-operativ e Socie ty to the defects noti fied in every  
et ic s° to 5°b e audit  or inquiry  or  insp ection of  such socie ty con- 
av ail ab le to duc ted as  pe r provisions of  the  C o-operativ e Societies 
ba nk . Act, and  sha ll also  supply a copy each of  such 

au di t, inquiry  or  inspection rep ort if dem and ed in
writ ing, by  the  bank.



TH E AS SA M GA ZE TT E, EX TR AO RD IN AR Y MAY  2, 1977 311

CHAPTER VI

M i sc el la n eon s

Exemption 26. No thing  in any law for the time being in  
from leg- fo r c e  dea ling  with  money-lending or agr icu ltur ists ’ 
tim^to m - d ^ t  relie f shah  apply to financial assistance avail ed 
ney lending of  by an agr icu lturist  from a bank .
and  agricu­
lturists  deb t
relief.

Mortgages 27. Notwi thst and ing any thin g con tained  in any 
executed by ja w  fo r  the time being in force, mortgages execu- 
Jo hn  H b id u t c c l  a i ? t e r  t h e  commencement of  this Act , by the 
families. manag er of  a Jo int  Hin du family in favour  of  

a ban k for secur ing financial assis tance for 
an agr icu ltur al purpose shall be bind ing on 
every mem ber  of  such Joint  Hindu family. Where 
a mortgage executed in favo ur of  a ban k is called 
in ques tion on the  gro und th at  it was executed 
by the man ager  of a Jo in t Hindu  fami ly for  a 
pur pose no t binding on the  members (wh ether such 
mem bers  have att ain ed  maj orit y or  not)  the reo f 
th e bur den  of  proving  the  same shall lie on the
party  alleging it.

Modified 28. Section 8 of  the Hindu  Minority  and
appli ca tio n Guardianship. Act, 1956, shal l app ly to mortga ges  
°p ^c t i o n 8  in fav ur  Of a bank  subjec t to the mod ification 
XXXII of t l i a t  r e fe r e n ce to the  court  therein  shall be cons- 
1956. trued as reference to the Com missioner of  Divi­

sion  or his nominee  and any appeal aga inst  the 
ord er of  the  Com missioner of Division or  his nom i­
nee shall lie to the  State  Government.

Power of 29. The  Sta+e Governme nt may  make rules to
Sta te Govern-pr o v ide for  all ma tter s for  which provision is 
make rules,  nece ssary or expedient  for the purpose of  giving 

effect to the  provis ions of  thi s] Act and  all such
rules  shal l be pub lished in the Official Gazette .

Rep eal an d 30.(1) The Assam  Agricultural  Credit Op era - Assam 
Savings. tions and  Miscellaneous Provisions  (Banks) Ordi-  Ord inance

nance, 1977 is here by repealed . 1 of 1977.

(2) No twith sta nd ing  such  repeal , any or de r 
passed, notif icati on issued,  any thin g done ! or any 
act ion  tak en under  the  Ordinance so repea led 
shall be deem ed to have been passed, issued , done 
or taken,  as the case may  be, und er the cor respon­
din g prov isions of  this  Act.



312 TH E ASSAM  GA ZETTE, EX TR AO RD INAR Y, MAY  2, 197?

SCHEDULE
Declaration  under section 6 (1)

I ............................................................. aged.........................  .............. years
residing  a t ................................................... being desirous of  availing myself
of  financial assistance from  the............................... Bank make this declara ­
tion  as requ ire d by sect ion 6(1) of  the  Assam Ag ric ult ura l Credit 
Ope rations  and Misce llaneous Prov isions (Banks) Act,  1977 tha t T,
..................... - ................................  own/have interest as a ten ant in the land
specified below, and  I hereby crea te a charge on the said land/inte res t 
in land  in favour of  the bank  for securing the financial assis tance  
which the ban k may make and for all futu re assistance if any,  which 
the ban k may make to me toge ther with interest and  costs and  expenses 
thereon .

schedule

Name of Name  of 
Village Mouza/Parganah

Name of District/ 
Sub-Division

Patta No. Dag No. Boundaries

(1) (2) (3) (4) (5) (6)
Areas-Bigh as/ 
Acres

Assessment 
Rs. P.

Approximate
value

Encumbrances if Remark, if 
any, Nature/amount any

(7) (8) (9) (10) (11) c.
No rth
East
Sou th
West

In witness whereof, I, Sh ri........................................................................
here und er set my han d this........................................ day o f ...........................
in the year  one  thousa nd nine hun dred an d..............................................
Signed and delivered bj» the  abov e nam ed in the presence of  :— 

Witnesses  .

1.
2S’ Signature  of declarant
Attested by,
Fo rward ed with compliments  to the  Sub-D epu ty Collecto r...............

....................................................................... with a requ est to include the
par ticula rs of  the  charg e/............................... crea ted under the declara tion
in the Recor d-o f Righ t and  to re tu rn  to the Bank  for  its records.

Ma nag er/A gen t

.................................................... Bank
Place....................................................



THE  AS SA M GA ZE TTE, EXTRA ORD INARY7, M AY 2, 1977 313

Returned  wi th compliments to the Ma nag er/Agent ......., ...................
■"........................... ........... Bank. The charge created under the dec laration
duly included in the Record of  Rights  on th e...................................................
day of .................................................... . .........

Sub-Depu ty Collector.

Forwarded with compl iments to ti e  Sub-Regist rar with  a request
to record the part icul ars of the cha rge ............................................................
created  unde r the dec lara tion  in hisj office.

Manag er/A gen t,

.....................................................Bank

Place......... . .........................................

Re turned  with complimen ts to the Manager/Ag ent................................
. ......................................Bank. The charge crea ted under  the declara tion
is duly reco rded .

Sub-Reg istra rs

N.B.—The  irrele vant wo ds/portions may be struck off and  relevan t entries  may te  
made where necessary.

u .  TAF IBIL DAR , 
Secreta ry to  the  Govt of Atsam, 

Legis lative  Dep artm ent .

GAUHATI —P ri n te d  an d pu blish ed  by  th e Sup dt . i/c , Ass am  Gov t. Pr int ing  
Press, (Ex-G azettel No. 121—1,625 +2,3 50—2-5-1977,