THE ASSAM CO-OPERATIVE LAND MORTGAGE BANK ACT, 1960 (SINGLE DOCUMENT)

ASSAM ACT NO. I OF 1961 

 

(Received the assent of the President on the 29th December, 1960) 

 

THE ASSAM CO-OPERATIVE LAND MORTGAGE BANK ACT, 1960 

 

AN 

ACT 

 

       to facilitate the working of the 
1
[Cooperative 

Agriculture and Rural Development Banks] in the 

State of Assam. 

 

Preamble.       
2
[Whereas it is expedient to facilitate the working of 

Cooperative Agriculture and Rural Development Banks in 

the State of Assam with a view to providing for grant of 

long-term and short-term loans for the purposes of 

agricultural development and activities incidental thereto, 

to finance construction of houses in rural areas, to promote 

rural industrialization by providing loans to artisans, 

craftsmen and small entrepreneurs and to advance loans to 

institutions and corporate bodies engaged in activities 

which directly or indirectly help the farmers and the rural 

people, in the manner hereinafter appearing ;] 

 

     It is hereby enacted in the Eleventh Year of the 

Republic of India as follows:- 

 

 

Short title, 

extent and 

commencement. 

1. (1) This Act may be called 
3
[The Cooperative 

Agriculture and Rural Development Banks] 1960. 

 

(2) It extends to the whole of the State of Assam 

 

(3) It shall come into force on such date as the State 

Government may, by notification in the official 

Gazette, appoint. 

 

 

Definitions. 2. In this Act, unless there is anything repugnant in the 

subject or context,- 

 
4
[(a) “Board” means the Board of Directors of the 

Central Mortgage Bank and includes Managing 

Body of a registered Society or by whatever 

name such body is called but does not include the 

Administrative Council of the Society.  

 

 

 

 

 

 

 

 

 
 
1. Subs. by Assam Act No. VIII of 1990.  

2. Subs. by Assam Act No. VIII of 1990. 

3. Subs. by Assam Act No. VIII of 1990. 

4. Subs. by Assam Act No. IV of 1976. 



2 
 

(b) “Central Mortgage Bank” means 
1
[The 

Cooperative Agriculture and Rural 

Development Bank Ltd.] and includes any other 

registered Co-operative Society notified by the 

State Government in this behalf.  

 

(c) “Mortgage Bank” means a 
2
[Cooperative 

Agriculture and Rural Development Bank] of  

registered under the Assam Co-operative 

Societies Act, 1949 and includes any other 

registered Co-operative Societies notified by the 

State Government in this behalf and admitted as 

a member of the Central Mortgage Bank.] 

 

(d) “Committee” means, in relation to Mortgage 

Bank, the Board of Directors or Board of 

Management or the Panchayat or the Committee 

of Management or the Governing Body to 

whom the management of its affairs is entrusted. 

 

(e) “Prescribed” means prescribed by rule made by 

the State Government under this Act. 

 

(f) “Registrar” means a person appointed to Assam 

perform the duties of Registrar of Co-operative 

Societies under the Assam Co-operative 

Societies' Act of 1949. 

 

(g) “Sale Officer” means the Sale Officer appointed 

under Section 19 of this Act to attach and sell 

the property of defaulters or to execute any 

decree by attachment and sale of property. 

 

(h) “Trustee” means the Trustee appointed under 

Section 3 of this Act. 

 

 

 

 

 
 

 
Assam Act I 

of 1950. 

 

 

 

 

 

 

 

 

 

 

 

Assam Act I 

of 1950. 

Appointment of 

Trustee and his 

powers and 

functions. 

3. (1) The Registrar, or where the State Government 

appoint any other person in this behalf, such officer, 

shall be the Trustee for the purpose of securing the 

fulfilment of the obligations of the Central Mortgage 

Bank to the holders of debentures issued by the 

Board. 

 

 

 

 

 

 

 

 

 

 
1. Subs. by Assam Act No. VIII of 1990. 

2. Subs. by Assam Act No. VIII of 1990. 



3 
 

(2) The powers and functions of the Trustee shall be 

governed by the provisions of this Act and by the 

instrument of trust executed between the Central 

Mortgage Bank and the Trustee as modified from 

time to time by mutual agreement between the Board 

and the Trustee. 

Trustee to be a 

Corporation 

Sole. 

4. The Trustee appointed under Section 3 shall be a 

Corporation Sole by the name of the Trustee for the 

debentures and as such shall have perpetual succession 

and a common seal and in his Corporate name shall sue 

and be sued. 

 

 

Issue of 

debentures by 

the Board. 

5. (1) With the previous sanction of the Trustee of the 

Board may, from time to time, issue debentures one 

or more denominations for such periods as it may 

deem expedient, on the security of the mortgages and 

other assets transferred or deemed to have been 

transferred under Section 21 by the Mortgage Banks 

to the Central Mortgage Bank and other properties of 

Central Mortgage Bank. 

 

(2) Such debentures may contain a term fixing a period 

not exceeding ten years from the date of issue during 

which they shall be irredeemable or reserving to the 

Board the right to call in at any time any of the 

debentures in advance of the date fixed for 

redemption after giving to the debenture holder 

concerned not less than three months' notice in 

writing. 

 

(3) The total amount due on the debentures issued by the 

Board and outstanding at any time shall not exceed 

the aggregate of (a) the amounts due on the mortgage 

and the value of the other assets transferred or 

deemed to have been transferred under Section 21 by 

the Mortgage Banks to the Central Mortgage Bank 

and subsisting at such time; and (b) the amounts paid 

under the mortgages aforesaid and remaining in the 

hands of the Board or of the Trustee at that time. 

 

 

Charge of 

Debenture 

Holders on 

certain 

properties. 

6. The holders of the debentures have a floating charge on- 

 

(a) all such mortgages and assets as are referred to 

in clause (a) of sub-section (3) of Section 5; 

 

(b) the amount paid under such mortgages and 

remaining in the hands of the Board or of the 

Trustee; and 

 

 



4 
 

(c) the other properties of the Central Mortgage 

Bank. 

 

Gaurantee by 

state 

Government of 

principal of, 

and interest on, 

debentures. 

7. (1) The principal of, and interest on, the debentures 

issued under Section 5, shall in respect of such 

maximum amount as may be fixed by State 

Government and subject to such condition as it may 

think fit to impose, carry the guarantee of the State 

Government. 

 

(2) The State Government may subject to any law of the 

legislature of the State increase the maximum amount 

of any guarantee given under sub-section (1) 

 

(3) The State Government may, after consulting the 

Board and the Trustee:- 

 

(a) by notification in the official Gazette; and 

 

(b) by notice of not less than fourteen days in such 

of the principal news papers in the State and of 

other States in India as the State Government 

may select in this behalf;  

 

     discontinue any guarantee given by it or 

restrict the maximum amount thereof or modify 

the conditions, subject to which it is given, with 

effect from a specified date, not being earlier 

than six months from the date of publication of 

the notification in the Official Gazette:  

 

     Provided that the withdrawal, restriction or 

modification of any guarantee shall not in any 

way affect the guarantee carried by any 

debenture issued prior to the date on which such 

withdrawal, restriction or modification takes 

effect. 

 

(4) Every notification and notice referred to in sub-

section (3) shall, where the maximum amount of 

guarantee is to be restricted or the conditions subject 

to which the guarantee is given are to be modified, 

set forth precisely the scope and effect of the 

restriction or modification, as the case may be. 

 

 

 

 

 

 

 



5 
 

Distraint- when 

to be made. 

8. (1) If any instalment payable under mortgage executed in 

favour of 
1
[the Central Mortagage Bank or] a 

Mortgage Bank or any part of such instalment has 

remained unpaid for more than one month from the 

date on which it fell due, the 
2
[Board or the] 

Committee may in addition to any other remedy 

available to the 
3
[Central Mortgage Bank or the]  said 

Mortgage Bank, apply to the Registrar or to such 

person as the State Government may appoint in this 

behalf for the recovery of such instalment or part by 

distraint and sale of the produce of the mortgaged 

land including the standing crops thereon. 

 

(2) On receipt of such application the Registrar or the 

person as the State Government may appoint in this 

behalf may, notwithstanding anything contained in 

the Transfer of Prooerty Act, 1882, take action in the 

manner as prescribed for the purpose of distraining 

and selling such produce :  

 

     Provided that no distraint shall be made after the 

expiry of twelve months from the date on which the 

instalment fell due. 

 

(3) The value of the property distrained shall be, as 

nearly as possible, equal to the amount due and the 

expenses of the distraint and the cost of the sale. 

 

 

 

 

 

 

 

 

 

 

 

 

Act IV of 

1882. 

Distraint how to 

be effected. 

9. (1) Before or at the time when a distraint is made under 

Section 8, 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 a copy to him or in his absence to some 

adult member of his family at his usual place of 

abode or to his authorised agent or when such service 

can not be effected, by affixing a copy of the demand 

on some conspicuous part of his abode and of his 

land. 

 

 

 

 

 

 

 

 

 

 
1. Ins. by Assam Act No. XXIV of 1964. 

2. Ins. by Assam Act No. XXIV of 1964. 

3. Ins. by Assam Act No. XXIV of 1964. 



6 
 

Sale of property 

distrained. 

10. (1) If, within 15 days from the date of service of demand 

referred to in Section 9, 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 his 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 a rate not exceeding 6 naye paise in the rupee 

on account of the cost of the sale 

 

(3) From the balance shall be deducted the expenses 

incurred by the distrainer on account of the distraint. 

 

(4) The remainder, 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. 

 

Power of sale 

when to be 

exercised. 

11. (1) Notwithstanding anything contained in the Transfer 

of Property Act, 1882, where a power of sale without 

the intervention of the court is expressly conferred on 

the 
1
[Central Mortgage Bank and the] Mortgage Bank 

by the mortgage deed, 
2
[the Board or] the Committee 

of such bank or any person authorised by such 

Committee in this behalf 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 the bank to bring the mortgaged property to sale 

without the intervention of the court. 

 

(2) No such power shall be exercised unless and until- 

 

(a) the Board has previously authorised the exercise 

of the power conferred by sub-section (l) after 

hearing the objection as, if any of the mortgagor: 

 

(b) notice in writing requiring payment of such 

mortgage money or part has been served upon- 

 

(i) the mortgagor ; 

 

 

 

 

 

 

Act IV of 

1882 

 
 

1. Ins. by Assam Act No. XXIV of 1964. 

2. Ins. by Assam Act No. XXIV of 1964. 



7 
 

(ii) any person who has any interest in or charge 

upon the property mortgaged or in or upon 

the right to redeem the same ; 

 

(iii) any surety for the payment of the mortgaged 

debt or any part thereof ; 

 

(iv) any creditor of the mortgagor who has in a 

suit for the administration of his estate 

obtained a decree for sale of the mortgaged 

property ; and 

 

(c) default has been made in payment of such 

mortgage money or part thereof for three months 

after such service. 

 

 
1
[11A. (1) Where advance is made against hypothecation of 

assets, the Mortgage Bank shall have power to put the 

assets on sale for default by the borrower of payment 

of instalment due. 

 

(2) No such power shall be exercised unless;- 

 

(a) notice in writing requiring payment of instalment 

due has been served upon the borrower ; and 

  

(b) default has been made in payment of such 

instalments due for three months after such 

service.]  

 

Application for 

sale and 

manner of sale. 

12. (1) In exercise of the power of sale conferred by Section 

11 and in confermity with the provisions thereof, 
2
[the 

Board or] the Committee 
3
[***] or any person duly 

authorised by such 
4
[Board or the] Committee may 

apply to the Sale Officer appointed in that behalf 

under Section 19 to sell the mortgaged property or 

any Part thereof and such officer shall after giving 

notice of 30 days in writing to all the persons referred 

to in Section 11, sell property in the manner 

prescribed. 

 

 

 

 

 

 

 

 

 

 

 

 

 
1. Ins. by Assam Act No. VIII of 1990. 

2. Ins. by Assam Act No. XXIV of 1964. 

3. Omitted by Assam Act No. XXIV 1964. 

4. Ins. by Assam Act No. XXIV of 1964. 



8 
 

(2) 1
[The sale shall be by public auction and shall be held 

in the village where the mortgaged property is 

situated or at the nearest place of public resort or in 

the office of the Sales Officer whichever place, in the 

opinion of the Sales Officer, is likely to attract the 

maximum number of bidders and the property is 

likely to sell to better advantage there.] 

Application to 

set aside sale 

and deposit and 

confirmation of 

sale in default 

or on dismissal 

of such 

application. 

13. (1) When a mortgaged property has been sold under the 

provisions of this Act, the mortgagor or any person 

having a right or interest therein affected by the sale 

may, at any time, within thirty days from the date of 

sale, apply to the 
2
[Board or the] Committee 

3
[***] 

concerned to have the sale set aside on his depositing 

at the office of such Bank. 

 

(a) for payment to 
4
[the Central Mortgaged Bank or] 

the Mortgage Bank 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, sum equal to such 

per cent of the purchase money as prescribed. 

 

(2) If such deposit is made, 
5
[the Board or] the 

Committee shall make an order setting aside the sale. 

 

(3) Where no application is made under sub-section (1) 

or where such application is made and disallowed, 
6
[the Board or] the Committee shall apply to the 

Registrar or to the parson appointed by the State in 

this behalf to make an order confirming the sale and 

on such officer's confirming the sale, it shall become 

absolute. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
1. Subs. by Assam Assam Act No. VIII of 1990. 

2. Ins. by Assam Act No. XXIV of 1964. 

3. Omitted by Assam Act No. XXIV of 1964. 

4.  Ins. by Assam Act No. XXIV of 1964. 

5. Ins. by Assam Act No. XXIV of 1964. 

6. Ins. by Assam Act No. XXIV of 1964. 



9 
 

Distribution of 

proceeds of 

sale. 

14. (1) The proceeds of every sale under the provisions of 

Sections 11, 12, 13 of this Act shall be applied by the 

Sale Officer, first in payment of all costs, charges and 

expenses actually incurred by him as incident to the 

sale or any proposed sale; secondly, in payment of all 

interest due on account of the mortgage in 

consequence whereof the mortgaged property was 

sold; thirdly, in payment of the principal money due 

on account of the mortgage; and lastly, in payment of 

the residue, if any, with the approval of the Registrar 

or the officer appointed by the State Government in 

this behalf to the person interested in the property 

sold or if there are more such persons than one then to 

such persons according to their respective interests 

upon their joint receipt. 

 

(2) Any person dissatisfied with the decision of the Sale 

Officer in regard to the distribution of the residue 

under sub-section (1) may, within thirty days of the 

communication to him of such decision, institute a 

suit to establish the right amount of interest he claims 

in a Civil Court within whose jurisdiction the 

property sold is situated. 

 

(3) The Sale Officer shall not distribute the residue under 

sub-section (1) until thirty days have elapsed from the 

communication of his decision to all the persons 

concerned or if a suit has been instituted within the 

said period of thirty days by any such person until the 

suit is disposed of or otherwise terminated and on 

such disposal or termination, the residue shall be 

distributed in accordance with the decision of the 

court.  

 

Explanation:- In this sub-section "Court" means the 

Civil Court which would have jurisdiction to entertain 

a suit to enforce the mortgage and within the limits of 

whose jurisdiction the property sold is situated. 

 

 

Certificate to 

purchaser. 

15. Where a sale of mortgaged property has become absolute, 

the Sale Officer shall grant a certificate specifying the 

property sold and the name of the person who, at the time 

of the sale, is declared to be the purchaser. Such certificate 

shall bear date and the day on which the sale became 

absolute. 

 

 

 

 

 

 



10 
 

Delivery of 

property to 

purchaser. 

16. (1) Where the mortgaged property sold is in the actual 

possession of the mortgagor or of some person on his 

behalf or of some person claiming under a title other 

than a lease for a period not exceeding three years 

created by the mortgagor subsequent to the mortgage 

in favour of 
1
[the Central Mortgage or] the Mortgage 

Bank and a certificate in respect thereof has been 

granted under Section 15, the court shall on the 

application of the purchaser, order delivery of the 

property to be made by putting such purchaser or his 

agent specially appointed in writing for the purpose in 

possession of the property. 

 

(2) Where the property sold is in the occupation of a 

tenant or other person entitled to occupy the same and 

a certificate in respect thereof has been granted under 

Section 15, the court shall, on the application of the 

purchaser, and after notice to such tenant or other 

person, order delivery to be made to the purchaser by 

affixing a copy of the certificate of sale in some 

conspicuous place on the property and proclaiming to 

the occupant and the public by beat of drum or other 

customary mode at some convenient place that the 

interest of the mortgagor has been transferred to the 

purchaser. 

 

(3) In regard to the cases dealt within sub-sections (1) 

and (2), the provisions of rules 97 to 103 of Order 

XXI of the first schedule to the Code of Civil 

Procedure, 1908 shall, mutatis mutandis and so far as 

may be, apply. 

 

 Explanation: - In this Section "Court" shall have the 

same meaning as in Section 14. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Act V of 

1908 

Appointment or 

Receiver and 

his powers. 

17. (1) The Board may on the application of 
2
[the Central 

Mortgage Bank or] a Mortgage Bank and under 

circumstances in which the power of sale conferred 

by Section 11 may be exercised, appoint in writing, a 

Receiver of the produce and income of the mortgaged 

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 expenses 

of management including his remuneration, if any, as 

fixed by the Board, and to apply the balance in 

accordance with the provisions of sub-section (8) of 

Section 69-A of the Transfer of Property Act, 1882. 

 

 

 

 

 

 

 

 

 

 

Act IV of 

1882. 

 
1. Ins. by Assam Act No. XXIV of 1964. 
2. Ins. by Assam Act No. XXIV of 1964. 



11 
 

(2) A Receiver appointed under sub-section (1) may, for 

sufficient cause and on application made by the 

mortgagor, be removed by the Board. 

 

(3) A vacancy in the office of the Receiver may be filled 

up by the Board. 

 

(4) Nothing in this Section shall empower the Board to 

appoint a Receiver when the mortgaged property is 

already in the possession of a Receiver appointed by a 

Civil Court. 

 

Title of 

purchaser not 

to be questioned 

on the ground 

of irregularity, 

etc. 

18. Where any property is sold in the exercise or purported 

exercise of a power of sale under the provision of this Act, 

the title of the purchaser shall not be questioned on the 

ground that- 

 

(a) the circumstances required for authorising the sale 

had arisen ; or 

 

(b) due notice of the sale was not given; or 

 

(c) the power of sale was otherwise improperly or 

irregularly exercised ;  

 

but any person who has suffered any damage by an 

unauthorised, improper or irregular exercise of any such 

power shall have a remedy in damages against 
1
[the 

Central Mortgage Bank or] the Mortgage Bank. Such 

property, shall vest in the purchaser free from all 

encumbrances. 

 

 

Appointment of 

Sale Officers. 

19. The Registrar shall appoint Sale Officers for the purpose of 

conducting sale under the provisions of this Act. 

 

 

Right of 

mortgage Bank 

or of the 

Central 

Mortgage Bank 

to Purchase the 

mortgaged 

property at 

sale. 

 

20. (1) Notwithstanding anything contained in any law for 

the time being in force, it shall be lawful for a 

Mortgage Bank or the Central Mortgage Bank to 

purchase any mortgaged property sold under this Act 

and the property so purchased shall be disposed of by 

such Bank by sale within such period as may be fixed 

by the Trustee. 

 

(2)  Nothing in the Assam Fixation of Ceiling on Land 

Holdings Act, 1956 fixing a maximum limit of 

agricultural holding shall apply to the acquisition of 

land by a Mortgage Bank or the Central Mortgage 

Bank under sub-section (1). 

 

 

 

 

 

 

 

Assam Act I 

of 1957. 

 
1. Ins. by Assam Act No. XXIV of 1964. 

 



12 
 

Mortgages 

executed in 

favour of 

Mortgage Bank 

to stand vested 

in Central 

Mortgage Bank. 

 

21. The mortgages executed in favour of, and all other assets 

transferred to a Mortgage Bank by the members thereof 

shall, with effect from the date of such execution or 

transfer (including those mortgaged to a Mortgage Bank 

before commencement of this Act) be deemed to have 

been transferred by such Mortgage Banks to the Central 

Mortgage Bank and shall stand vested in the Trustee. 

 

 

Powers of the 

Mortgage Bank 

where property 

is destroyed or 

security 

becomes 

insufficient. 

22. Where any property mortgaged to 
1
[the Central Mortgage 

Bank or] a Mortgage Bank is wholly or partially destroyed 

or the security is rendered insufficient and the mortgagor, 

having been given a reasonable opportunity by 
2
[the Board 

or] the Committee 
3
[***] of providing further security 

enough to render the whole security sufficient of repaying 

such portion of the loan as may be determined by 
4
[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 fall due at once and the 

Committee shall be entitled to take action against the 

mortgagor under Section 8 or Section 11 for the recovery 

thereof. 

 

Explanation.- A security is insufficient within the meaning 

of this Section unless the value of the mortgaged property 

exceeds the amount for the time being due on the mortgage 

by such proportion as may be specified in the bye-laws of 

the 
5
[Central Mortgage Bank or the] Mortgage Bank. 

 

 

Power of Board 

or of Trustee to 

distrain and 

sale of 

property, etc. 

23. (1) 6
[The Trustee may direct the Board or the Committee, 

and the Board may direct the Committee to take 

action against a defaulter under section 8, section 11 

or section 12 and if the Board or the Committee 

neglects or fails to do so, the Trustee or the Board 

may take such action.] 

 

(2) Where such action is taken by the Board the 

provisions of this Act and of any rules made in this 

behalf shall apply in respect thereto as if all 

references to the Mortgage Bank and to its Committee 

in the said provisions were references to the Central 

Mortgage Bank and the Board respectively. 

 

 

 

 

 

 

 

 

 

 

 
1. Ins. by Assam Act No. XXIV of 1964.  

2. Ins. by Assam Act No. XXIV of 1964. 

3. Omitted by Assam Act No. XXIV of 1964. 

4. Ins. by Assam Act No. XXIV of 1964. 

5. Ins. by Assam Act No. XXIV of 1964. 

6. Subs. by Assam Act No. XXIV of 1964. 



13 
 

(3) Where such action is taken by the Trustee, the 

provisions of this Act and of any rules made 

thereunder shall apply in respect thereto, as if, all 

references to 
1
[the Central Mortgage Bank or the] 

Mortgage Bank or to 
2
[the Board or the] Committee in 

the said provisions were references to the Trustee. 

Mortgagors' 

Power lease. 

24. (1) Notwithstanding anything contained in the Transfer 

of Property Act, 1882, or in any other law for the time 

being in force, a mortgagor shall not grant a lease of 

the mortgaged property for a period exceeding three 

years. 

 

(2) Any lease granted in contravention of the provisions 

of sub-section (1) shall be void. 

 

Act IV of 

1882. 

Mortgage not to 

be questioned 

on insolvency of 

mortgagor. 

25. Notwithstanding anything contained in the Provincial 

Insolvency Act of 1920 and in any law relating to 

insolvency, a mortgage executed in favour of 
3
[the Central 

Mortgage Bank or] a Mortgage Bank shall not be called in 

question on the ground that it was not executed in good 

faith for valuable consideration or on the ground that was 

executed in order to give 
4
[the Central Mortagage Bank or] 

the Mortgage Bank a preference over the other creditors of 

the mortgage 

 

Act V of 

1920. 

Power of 

mortgage bank 

to receive 

money and 

grant valid 

discharges 

notwithstanding 

assignment of 

Mortgage deeds 

to the Central 

Mortgage Bank. 

26. Notwithstanding that a mortgage executed in favour of a 

Mortgage Bank has been transferred, or is deemed under 

the provision of Section 21 to have been transferred to the 

Central Mortgage Bank- 

 

(a) all moneys due under the mortgage may, in the 

absence of any specific direction to the contrary 

issued by the Board or Trustee and communicated 

to the mortgagor, be paid to 
5
[the Central 

Mortagage Bank or] the Mortgage Bank and such 

payment shall be valid as if, the mortgage had not 

been so transferred ; and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Ins. by Assam Act No. XXIV of 1964. 

2. Ins. by Assam Act No. XXIV of 1964. 

3. Ins. by Assam Act No. XXIV of 1964. 

4. Ins. by Assam Act No. XXIV of 1964. 

5. Ins. by Assam Act No. XXIV of 1964. 



14 
 

(b) the Mortgage Bank shall, in the absence of any 

specific direction to the contrary issued by the 

Board or Trustee and communicated to the 

Mortgage Bank be entitled to sue on the mortgage 

or take any other proceedings for the recovery of 

the moneys due under the mortgage. 

 

 

Priority of 

mortgage over 

certain claims. 

27. A mortgage executed in favour of a Mortgage Bank and 

Central Mortgage Bank shall have priority over any claim 

of the Government arising from a loan under the Land 

Improvement Loans Act, 1883, or the Agriculturist's Loans 

Act, 1884 granted after the execution of the mortgage. 

 

Act XIX of 

1883. 

Act XIX of 

1884. 

 

Right of 

Mortgage a 

Bank to pay 

prior debts of 

mortgagor. 

28. (1) Where a mortgage is executed in favour of 
1
[the 

Central Mortagage Bank or] a Mortgage Bank for 

payment of prior debts of the mortgagor, the Bank 

may, notwithstanding the provisions of Sections 75 

and 76 of the Transfer of Property Act, 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 Mortgage Bank at its registered 

office within such period as may be specified in the 

notice. 

 

(2) Where 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:  

 

     Provided that where there is a dispute as regards 

the amount of any such debt the person to whom such 

debt is due shall be bound to receive payment of the 

amount offered by the 
2
[the Central Mortagage Bank 

or] Mortgage Bank towards the debt, but such receipt 

shall not prejudice the right, if any, of such person, to 

recover the balance claimed by him 

 

 

 

Act VI of 

1882. 

 

Registration of 

documents 

executed on 

behalf of a 

Mortgage Bank 

or of the 

Central 

Mortgage Bank. 

29. (1) Notwithstanding anything contained in the Indian 

Registration Act 1908 it shall not be necessary for any 

officer of a Mortgage Bank or of the Central 

Mortgage 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. 

 

 

 

 

Act XVI of 

1908. 

 
1. Ins. by Assam Act No. XXIV of 1964. 

2. Ins. by Assam Act No. XXIV of 1964. 



15 
 

 

(2) Where any instrument is so executed, the registering 

officer to whom such istrument is presented for 

registration, may, if he thinks fit, refer to such officer 

as stated in sub-section (1) for information respecting 

the same, and on being satisfied of the execution 

thereof, shall register the instrument. 

 

Proof of 

documents or 

entries in 

documents. 

30. Any Mortgage Bank or the Central Mortgage Bank may 

grant copies of any document obtained and kept by it in the 

course of its business or of any entries in such document; 

and any copy so granted shall, where 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. 

 

 

Provisions of 

the Act shall 

apply to loans 

advanced by 

Mortgage 

Banks from 

funds not 

borrowed from 

the Central 

Mortgage Bank. 

 

31. The provisions of the Act shall apply also to the loans 

advanced by Mortgage Banks from funds which have not 

been borrowed from the Central Mortgage Bank. 

 

 

Service of 

notice. 

32. Whenever under the provisions of this Act notice is 

required to be given to any person in writing, it shall be 

sufficient to send such notice by : - 

 

(i) Registered post with acknowledgement due, or 

(ii) personal service through official messenger 

or (iii) affixing a copy of the notice at the last 

known place of residence or business of the 

person concerned through any office bearer or 

employee of the Central Mortgage Bank or 

Mortgage Bank, as the case may be, with two 

witnesses when the person concerned refuses to 

accept the notice and sign the acknowledgement 

or he cannot be found. 

 

 

Sections 102, 

103 and 104 of 

the Transfer of 

property Act 

1882, to apply 

to such notices 

under this Act. 

33. The provisions of Sections 102 and 103 of the Transfer of 

Property Act, 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, in 

respect of all notices to be served under this Act. 

Act IV of 

1882. 



16 
 

 

Officer of 

Mortgage Bank 

and the Central 

Mortgage Bank 

and sale officers 

not to bid at 

sale. 

34. At any sale of movable or immovable property held under 

the provisions of this Act in order to recover any money 

due to a Mortgage Bank, no Director, Secretary or other 

officer of such Bank or of the Central Mortgage Bank 

(except on behalf of the Bank of which he is a Director or 

Secretary or an Officer) and no sales officer or other 

persons 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. 

 

 

Delegation of 

certain powers 

by Board. 

35. The Board may, if it thinks fit , delegate all or any of its 

powers under Sections 11, 17 and 23 to an Executive 

Committee constituted by it and consisting of two or more 

of its members. 

 

 

Powers of the 

State 

Government to 

make Rules. 

36. (1) The State Government may, by notification in the 

official Gazette, make rules for carrying out the 

purposes of the Act. 

 

(2) In particular, and without prejudice to the generality 

of the foregoing power, such rules may provide for all 

or any of the following matters, namely- 

 

(a) the manner of effecting distraint ; 

 

(b) the custody, preservation and sale of distrained 

property ; 

 

(c) the investigation of claims by persons other than 

the defaulter to any right or interest in the 

distrained property and for the postponement of 

the sale pending such investigation ; 

 

(d) the immediate sale of perishable articles ; 

 

(e) the due proclamation and conduct of the sale ; 

 

(f) the recovery of the expenses of proclamation 

and sale ; 

 

(g) the deposit of the purchase money ; 

 

(h) the re-sale of the property, if the purchase 

money is not deposited ; and 

 

(i) any other matter which has to be, or may be, 

prescribed. 

 

 

 

 



17 
 

 

(3) All rules made under this Section shall be laid for not 

less than fourteen days before the Assam Legislative 

Assembly as soon as possible after they are made, and 

shall be subject to such modifications as the 

Legislative Assembly may make during the Session in 

which they are so laid or the Session immediately 

following. 

 

Power of the 

Board to make 

Regulations. 

37. (1) The Board may, subject to the approval of the 

Trustee, make regulations not inconsistent with the 

provisions of this Act and the rules made thereunder 

for enabling it to discharge its functions under this 

Act. 

 

(2) In particular, and without prejudice to the generality 

of the foregoing power, such regulations may provide 

for all or any of the following matters, namely:- 

 

(a) fixing the period of debentures and the rate of 

interest payable thereon ; 

 

(b) calling in debentures after giving notice to 

debenture holders ; 

 

(c) the issue of new debentures in place of 

debentures damaged or destroyed ; 

 

(d) converting one class of debenture into another, 

bearing a different rate of interest ; 

 

(e) the inspection of the account books and 

proceedings of Mortgage Banks ; 

 

(f) the submission of returns and reports by 

Mortgage Banks in respect of their transaction ; 

 

(g) the periodical settlement of accounts between 

Mortgage Bank and the payment of the amounts 

recovered by Mortgage Banks on mortgages 

transferred or deemed under the provisions of 

Section 21 to have been transferred to the 

Central Mortgage Bank ; 

 

(h) specifying the form in which applications to 

Mortgage Banks for loans should be made and 

for the valuation of the properties offered as 

security for such loans ; 

 

 

 



18 
 

 

(i) the investment of moneys realised from 

mortgagor ; and 

 

(j) generally for any other matter in respect of 

which the Board considers provision should be 

made for the purposes of this Act. 

 

(3) All such regulations shall be published in the official 

Gazette.