The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.

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The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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GOVERNMENT OF GUJARAT 

 

 

 

 

 

 

 

 

 

LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT 

 

 

 

 

 

 

 

 

 

 

 

 

Gujarat Act No. 19 of 1979 
 

 

 

 

 

 

 

 

 

 

 

 

The Gujarat Agricultural Credit (Provision of 

Facilities) Act, 1979. 
 

 

 

 

 

 

 

 

 

 

(As modified up to the 31st May, 2012) 

 

 

 

 

 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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THE GUJARAT AGRICULTURAL CREDIT (PROVISION OF FACILITIES) 

ACT, 1979 

 

CONTENTS 

PREAMBLE. 

 

SECTIONS.        PAGE No. 

 

CHAPTER I. 

PRELIMINARY. 

1. Short title, extent and commencement. 

 

2. Definitions. 

 

CHAPTER II. 

RIGHTS OF AGRICULTURISTS TO ALIENATE LAND IN FAVOUR OF 

BANKS. 

 

3.  Removal of restrictions on alienation of land by agriculturists in favour of 

banks. 

 

4.  Charge on crop and other moveable property in favour of  a bank. 

 

5.  Creation of charge on land in favour of a bank by declaration. 

 

CHAPTER III. 

CHARGES AND MORTGAGES IN FAVOUR OF BANKS BY 

AGRICULTURISTS AND PRIORITIES THEREOF. 
 

6.  Notice of creation of charge and mortgage in favour of bank to be given to Co-

operative Society. 

 

7.  Priority of charges and mortgages in favour of a Bank, Government and Co-

operative Society. 

 

8.  Exemption from registration of charge of mortgage in favour of Bank. 

 

9.  Noting of charge or mortgage created in favour of bank in Record of Rights. 

 

10.  Restrictions on sale of land by agriculturist barrower. 

 

CHAPTER IV. 

ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS FROM 

AGRICULTURISTS. 
 

11. Recovery of dues of bank through authorised officer. 

 

12. Rights of bank to acquire and dispose of land or interest therein. 

 

13. Exemption to banks from restrictions on acquisiton of land in excess of ceiling. 

 

14. Land not vesting in Government to be charged for unrecovered dues in certain 

cases. 

 

15. Recovery of dues in respect of financial assistance to carry out-State-sponsored 

Scheme as arrears of land revenue. 

 

CHAPTER V. 

FINANCING OF CO-OPERATIVE SOCIETIES BY BANKS. 

 

16. Bank eligible to become member of co-operative society. 

 

17. Inspection of books of co-operative society by bank. 

 

18. Disputes between bank and co-operative society. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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SECTIONS.        PAGE No. 

 

19. Settlement of disputes. 

 

20. Recovery of money awarded. 

 

21. Power of bank to proceed against defaulting members of a co-operative 

society. 

 

22. Audit inquiry and inspection report of societies to be made available to banks. 

 

CHAPTER VI. 

MISCELLANEOUS. 
 

23. Exemption from legislations relating to money lending and relief of 

agricultural indebtedness. 

 

24. Mortgage executed by managers of Joint Hindu families. 

 

25. Modified application of section 8 of Act XXXII of 1956. 

 

26. Mortgages not to be questioned on insolvency of mortgagors. 

 

27. Power of State Government to make rules. 

 

SCHEDULE 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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GUJARAT ACT NO. 19 OF 19791  

 

[THE GUJARAT AGRICULTURAL CREDIT (PROVISION OF FACILITIES) ACT, 

1979] 

 

An Act to make better provision for the adequate supply of credit for increasing 

agricultural production and development in the State of Gujarat and for that purpose to 

remove restrictions on alienation of certain agricultural lands so as to enable banks and 

other institutional credit agencies to provide credit on such lands; and to provide for the 

speedy recovery of the dues of such banks and credit agencies which provide credit; 

and to provide for matters connected with, and incidental to the purposes aforesaid. 

 

It is hereby enacted in the Thirtieth Year of the Republic of India as follows :- 

 

CHAPTER I 

PRERIMINARY 
 

1. (1) This Act may be called the Gujarat Agricultural Credit (Provision of 

Facilities) Act, 1979. 

 

(2) It extends to the whole of the State of Gujarat. 

 

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

notification in the Official Gazette, appoint. 

 

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

 

(a) "agriculture" includes making land fit for cultivation, cultivation of land, 

improvement and development of land including development of sources of 

irrigation, raising and harvesting of crops, horticulture, forestry, planting and 

farming and cattle breeding, animal husbandry, dairy farming, seed farming, 

fishing, pisciculture, apiculture, sericulture, piggery, poultry farming and such 

other activities as are generally carried on by agriculturists, dairy farmers, 

cattle breeders, poultry farmers and other categories of persons engaged in 

similar activities including marketing of agricultural products, their storage and 

transport and the acquisition of implements and machinery in connection with 

any such, activity; and also includes the purpose enumerated in section 116 of 

the Co-operative Societies Act; and the term "agricultural purpose" shall be 

construed accordingly; 

 

(b) "agriculturist" means a person who is engaged in agriculture and includes a 

co-operative society registered under the Co-operative Societies Act as a co-

operative farming society; 

 

(c) "Agro-Industries Corporation" means a company or other body corporate 

one of the principal objectives of which is to undertake activities connected 

with or intended for the development of, agriculture and not less than fifty-one 

percent paid-up share capital of which is held by the Central Government or 

any State Government or Governments or partly by the Central Government 

and partly by one or more State Governments. 

 

(d) "bank" means— 

(i) a banking company as defined in the Banking Regulation Act, 1949; 
 

(ii) the State Bank of India constituted under the State Bank of India 

Act, 1955; 
 

(iii) Subsidiary Bank as defined in the State Bank of India (Subsidiary 

Banks) Act, 1959; 
 

(iv) a corresponding new bank constituted under the Banking 

Companies (Acquisition and Transfer of Undertakings) Act, 1970 ; 
 

(v) any banking institution notified by the Central Government under 

section 51 of the Banking Regulation Act, 1949; 
 

Short title, extent 

and 

commencement. 

Definitions 

X of 1949 
XXI of 1955. 

XXX VIII of 

1959. 

5 of 1970. 

X of 1949 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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(vi) the Agricultural Refinance and Development Corporation 

constituted under the Agricultural Refinance and Development 

Corporation Act, 1963; 
 

(vii) any Agro-Industries Corporation ; 
 

(viii) the Agricultural Finance Corporation Limited, a company 

incorporated under the Companies Act, 1956; 
 

(ix) any other financial institution notified by the State Government in 

the Official Gazette as a Bank, for the purposes of this Act. 

 

(e) "Co-operative Societies Act" means the Gujarat Co-operative Societies Act, 

1961 ; 

 

(f) "Co-operative society" means a co-operative society registered or deemed to 

be registered under the Co-operative Societies Act, the object of which is to 

provide financial assistance to its members and includes a co-operative land 

development bank ; 

 

(g) "financial assistance" means assistance granted by way of loans advances, 

guarantees or otherwise to an agriculturist— 

 

(i) for any agricultural purpose; or 
 

(ii) for the purpose of carrying out any State-sponsored scheme; or 
 

(iii) for relief against distress caused by fire or by serious draught, flood 

or other natural calamities ; 

 

(h) "Government Company" means a Government Company as defined in section 617 

of the Companies Act, 1956. 

 

(i) "prescribed" means prescribed by rules made under this Act; 

 

(j) "Registrar" means a person appointed to be the Registrar of Co- operative Societies 

under the Co-operative Societies Act ; 

 

(k) "States-sponsored scheme" means a scheme sponsored or adopted by the State 

Government or an officer authorised by it in that behalf, for the development of 

agriculture and notified as such by the State Government or the authorised officer, by a 

notification in the Official Gazette, for the purposes of this Act. 

 

CHAPTER II. 

RIGHTS OF AGRICULTURISTS TO ALIENATE LAND IN FAVOUR OF 

BANKS. 

 

3. Notwithstanding anything contained in any law for the time being in force or in any 

custom or usage having the force of law, restricting the right of an agriculturist to 

alienate his land or any of this interest therein, it shall be lawful for an agriculturist to 

mortgage, or create a charge on; his land or any interest therein, in favour of a bank for 

the purpose of obtaining financial assistance from that bank. 

 

4. (1) It shall be lawful for an agriculturist to create a charge on the moveable 

property owned by him, or on the crops raised by him, standing or otherwise, 

or other produce from land cultivated by him, to the extent of his interest 

therein, in favour of a bank, to secure financial assistance from that bank, 

notwithstanding that he may not be the owner of the land on or from which the 

crop or other produce is raised. 

 

(2) Where a charge is created by an agriculturist under sub-section (1) on any 

movable property, crops or other produce to secure any financial assistance 

given to him by a bank, then, notwithstanding anything to the contrary in the 

Cooperative Societies Act, no subsequent charge in respect of financial 

assistance provided to such agriculturist by a co- operative society shall have 

10 of 1963. 

I of 1956. 

Guj.X of 1962. 

I of 1956. 

Removal of 

restrictions on 

alienation of land 

by agriculturists in 

favour of banks. 

Charge on crop 

and other movable 

property in favour 

of a bank. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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priority over such charge on the crops or other produce raised by him, or, as the 

ease may be, on any other movable property, in respect of any financial 

assistance given to him by the bank. 

 

(3) A bank may distrain and sell, through an officer designated by the State 

Government in this behalf, the crop or other produce or other movables 

charged to that bank to the extent of the agriculturists interest therein, and 

appropriate the proceeds of such sale towards all moneys due to the bank from 

that agriculturist, in respect of the financial assistance. 
 

5. (1) Where an agriculturist creates a charge on land or any other immovable 

property, which he owns or in which he has an interest, in respect of any 

financial assistance given to him by a bank, he may make a declaration in 

accordance with the form set out in the Schedule or as near there to as 

circumstances permit, declaring that there by he creates in favour of the bank, a 

charge on such land or his interest there in or other immovable property, as the 

case may be, to secure the financial assistance provided to him by the bank. 

 

(2) A declaration made under sub-section (1) may be varied from time to time 

by the agriculturist with the consent of the bank in whose favour the 

declaration has been made. Such variation shall take effect from such date on 

which the variation, if it had been an original declaration would have effect 

under section 8. 

 

CHAPTER III 

CHARGES AND MORTGAGES IN FAVOUR OF BANKS BY 

AGRICULTURISTS AND PRIORITIES THEREOF. 

 

6. A charge or mortgage, on any land or interest therein may be created by an 

agriculturist under section 3, notwithstanding anything to the contrary contained in the 

Co-operative Societies Act, and notwithstanding that such land or interest therein, 

stands already charged or mortgaged to co-operative society provided that prior notice 

thereof is given by such agriculturist to the co-operative society concerned. 
 

7. (1) Notwithstanding anything to the contrary contained in any law for the time 

being in force— 

(a) any charge or mortgage created by an agriculturist on any land or 

interest therein, in favour of a bank, as security for financial assistance 

given to him by that bank, shall after the commencement of this Act, if 

prior in time have priority over any subsequent charge or mortgage in 

favour of Government or a co-operative society; and 

 

(b) any charge or mortgage created by an agriculturist on any land or 

interest therein in favour of a bank, as security for financial assistance 

given to him by that bank shall have priority over any other charge or 

mortgage in or over such land or interest therein in favour of any 

person other than Government or co-operative society or any other 

bank notwithstanding that such other charge or mortgage is prior in 

time to the charge or mortgage created in favour of the bank as 

security; for financial assistance given to such agriculturist. 

 

(2) Where different charges or mortgages on the same land or interest therein, 

are created by an agriculturist in favour of Government, one or more co-

operative societies or one or more banks, any such charges or mortgages 

created as security for financial assistance given by Government, co-operative 

society or bank by way of term loan for development purposes, shall have 

priority over any other charges or mortgages created in favour of Government 

co-operative societies or banks, provided a notice of such financial assistance 

by way of term loan for development purposes has been given to such 

Government co-operative society or bank, and that Government co-operative 

society or bank has consented to such financial assistance being given; and 

where more than one such charge or mortgage is created as security for 

financial assistance by way of term loan for development purposes, the charges 

or mortgages by way of security for the term loan for development purposes 

shall rank in priority inter-se in accordance with the dates of their creation. 

Creation of charge 

on land in favour 

of a bank by 

declaration 

Notice of creation of 

charge and mortgage 

in favour of bank to 

be given to co- 

operative society. 

Priority of charges 

and mortgages in 

favour of a bank, 

Government and co-
operative society 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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Explanation.—For the purposes of this section, the expression "term 

loan for development purposes" means financial assistance which generally 

results in improvement of agriculture or building up of tangible assets in 

agriculture; but does not include financial assistance for working capital 

expenses, seasonal agricultural operations or marketing crops. 

 

(3) Nothing in this section shall apply- 

 

(i) to borrowings only from one or more co-operative societies, and 

 

(ii) to the recovery of sums due to Government as arrears of land 

revenue. 

 

8. Notwithstanding anything contained in the Registration Act, 1908, it shall not be 

necessary to register a charge in respect of which a declaration has been made under 

sub-section (1)of section 5, or in respect of which a variation has been made under sub-

section (2) of that section, or a mortgage executed by an agriculturist in favour of a 

bank and such charge, variation or mortgage shall have effect from the date it is created 

or made, provided that the bank sends within such time and in such manner as may be 

prescribed, a copy of the instrument whereby the charge, variation or mortgage is 

created or made to the Registering Officer within the local limits of whose jurisdiction 

the whole or any part of the property charged or mortgaged is situated, and such 

Registering Officer shall file a copy or copies, as the case may be, in his Book No. 1 

prescribed under section 51 of the Registration Act, 1908. 

 

9. Whenever a charge or mortgage is created by an agriculturist on land or any interest 

therein in favour of a bank as security for financial assistance given to him by that 

bank, the bank shall give intimation to the village accountant or such other revenue 

officer as may be designated in this behalf by the state Government, of the particulars 

of the charge or mortgage in its favour. The village accountant or such other revenue 

officer shall make a note of the particulars of charge or mortgage in the Record of 

Rights relating to the land over which the charge or mortgage has been created. The 

bank shall likewise give an intimation to the village accountant or such other revenue 

officer as soon as the financial assistance given by it to the agriculturist ceases to be 

outstanding and thereupon the village accountant or such other revenue officer shall 

make a suitable note in the Record of Rights about release of the land from the charge 

or mortgage, as he case may be. 

 

10. (1) Notwithstanding anything contained in any law for the time being in force, 

an agriculturist who has availed himself of financial assistance from a bank by 

creating a charge or mortgage on land or interest therein shall not, after he had 

availed of such assistance and so long as such assistance continues to be 

outstanding, enter into an aggreement of sale of the land, without prior 

permission in writing of that bank. 

 

(2) Any agreement of sale entered into, in contravention of sub-section (1) shall 

be void and unenforceable. 
 

(3) Notwithstanding the lease of the land which is subject to the charge or 

mortgage in favour of the bank, or lease of any interest therein or creation of 

any tenancy rights on such land the land shall continue to be subject to such 

charge or the mortgage : 

 

Provided that where the lessee of land or interest therein becomes 

occupant of such land such occupant shall hold the land subject to the charge or 

mortgage created by the lessor in favour of the bank except in the case where 

the amount of loan given by the bank to the lessor is misused by the lessor. 

 

(4) The question whether the amount of loan granted by the bank to the lessor 

is misused or not shall be inquired into and decided upon by an officer 

authorized by the State Government in this behalf and any decision by such 

officer shall, subject to an appeal if any made to the State Government in such 

manner and within such time as may be prescribed, be final. 

 

XVI of 1908. 

XVI of 1908. 

Exemption from 

registration of 

charge or 

mortgage in 

favour of bank. 

Noting of charge 

or mortgage 

created in favour 

of bank in 
Record of 

Rights. 

Restrictions on 

sale of land by 
agriculturist 

borrower. 



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CHAPTER IV. 

ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS FROM 

AGRICULTURISTS. 

 

11. (1) Such officer as may be authorized by the State government for the purpose 

of this section (hereinafter referred to as the “ authorized officer”) may, on the 

application of a bank, after making such inquiry as he deems fit, make an order 

on any agriculturist or his heirs or legal representatives, directing the payment 

of any sum due to the bank on account of financial assistance availed of by the 

agriculturist, by the sale of any land or interest therein on which a charge or 

mortgage is created as security for such financial assistance : 

 

Provided that no order shall be made by the authorized officer under 

this section for the payment of any sum or the sale of any land or interest 

therein on which such charge or mortgage is created, unless the agriculturist or 

the heirs or legal representative of the agriculturist, as the case may be,- 

 

(i) have become liable to repay such sum to the bank under the terms 

and conditions of the grant of the financial assistance and have comm- itted 

default in repayment of such sum or have otherwise failed to comply with the 

terms and conditions of the grants, and 

 

(ii) have been served in the prescribed manner with a notice in writing 

by the authorised officer calling upon them to pay the amount due. 

 

(2) Every application by a bank under sub-section (1) shall be made on a court-

fee stamp of a prescribed amount. 
 

(3) Every order passed by the authorised officer under sub-section (1) shall be 

deemed to be a decree of a Civil Court of competent jurisdiction and shall be 

executed in the same manner as a decree of such Court. 

 

(4) Nothing in this section shall debar a bank from seeking to enforce its rights 

in any other manner under any other law for the time being in force. 

 

12. (1) Notwithstanding anything contained in any law for the time being in force, 

a bank shall have power to itself acquire agricultural land or interest therein on 

which a charge or mortgage has been created in its favour by an agriculturist in 

respect of any financial assistance availed of by him, provided the said land or 

interest therein has been sought to be sold by public auction and no person has 

offered to purchase it for a price which is sufficient to pay to the bank the 

moneys due to it : 

 

Provided that no such land or interest herein shall be sought to be sold 

by public auction, by the bank, without the previous permission in writing of 

the collector of the district in which such land is situated. 

 

(2) A bank which acquires any land or interest therein in pursuance of the 

power vested in it under sub-section (1) shall dispose it of by sale, within a 

period to be specified by the State Government in this behalf. 

 

(3) If the bank leases out any land or any interest therein acquired by it under 

sub-section (1), pending sale thereof as indicated in sub-section (2), the period 

of lease shall not exceed one year at a time and the lessee shall not acquire any 

right to purchase such land or interest leased to him, notwithstanding any 

provisions to the contrary in any other law for the time being in force. 

 

(4) A sale by a bank of land or interest therein under this section shall be 

subject to the provisions of any law for the time being in force imposing 

restrictions on purchase of land by non-agriculturists or by a person not 

belonging to a Scheduled Tribe or Scheduled Casate or on fragmentation of 

land or imposing ceiling on acquisition of land or interest therein. 

 

13. Nothing in any law for the time being in force imposing a ceiling or limit on the 

holding of land or regulating the price at which such land may be sold or acquired shall 

Recovery of 

dues of bank 
through 

authorised 

officer. 

Rights of bank to 

acquire and 

dispose of land or 

interest therein. 

Exemption to banks 

from registrictions 

on acquisition of 

land in excess of 

ceiling. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

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apply to a bank acquire land under this Act at a price which is adequate to cover its 

dues and holding such land till such time as the bank sells the land in the manner 

provided in section 12. 

 

14. Where by an order made by a Tribunal under section 21 of the Gujarat Agricultural 

Lands Ceiling Act, 1960, any portion of land on which mortgage or charge is created in 

favour of a bank is declared as surplus land and the amount of compensation 

apportioned to the bank under section 24 of that Act in respect of the mortgage or 

charge on the land declared as surplus is less than the amount due from the agriculturist 

on account of the financial assistance given to the agriculturist by the bank, then 

notwithstanding anything contained in any law for the time being in force, the balance 

of the amount due shall be a charge on the portion of the land which the agriculturist is 

entitled to hold under the order made under section 21 of that Act. 

 

15. Notwithstanding anything contained in the foregoing provisions of this Chapter, the 

State Government may, by an order published in the Official Gazette, direct that any 

amount due from the agriculturist towards financial assistance given to him by a bank 

for the purpose of carrying out any State-sponsored scheme may be recovered on 

behalf of such bank as an arrear of land revenue. Any amount so recovered on behalf 

of the bank shall be paid over to the bank after deducting such portion thereof as cost 

of collection as the Collector may determine to be reasonable. 

 

CHAPTER V. 

FINANCING OF CO-OPERATIVE SOCIEIES BY BANKS 

 

16. Notwithstanding anything contained in the Co-operative Societies Act or any law 

for the time being in force, it shall be lawful for a bank to become a member of a co-

operative society. 
 

17. (1) A bank shall have the right to inspect the books of any co- operative society 

which has either applied to the bank for grant of financial assistance to be 

provided to its members or which is indebted to the bank on account of any 

financial assistance given earlier by the bank to the society for such purpose. 
 

(2) The inspection may be carried out by an officer or any other member of the 

paid staff of  the bank with the previous sanction in writing of the Registrar. 

 

(3) The Officer or other member of the paid staff of the bank authorised to 

carry out such inspection shall at all reasonable times have access to the books 

of accounts documents securities cash and other properties belonging to or in 

the custody of the co-operative society inspected by him and shall also be 

supplied by such society such information statements and returns as may be 

required by him to assess the financial condition of the society and the safety of 

financial assistance to be given or already given to the society. 

 

18. (1) Notwithstanding anything contained in the Co-operative Societies Act or 

any other law for the time being in force, any dispute touching the constitution 

management or business of a co-operative society between a bank which has 

given to a co-operative society any money, loan or advance for the purpose of 

providing financial assistance to its members and the co-operative society to 

which such money, loan or advance has been given, other than disputes 

regarding disciplinary action taken by the society or its committee against paid 

employee of the society shall be referred by either of the parties to the dispute 

to the Registrar for decision. 

 

(2) Where any question arises whether, for the purposes of sub-section (1), a 

matter referred to for decision is a dispute or not the question shall be decided 

by the Registrar, whose decision shall be final. 

 

19. If the Registrar is satisfied that any matter referred to him or brought to his notice is 

a dispute referred to in section 18, the Registrar shall decide the dispute himself or 

refer it for disposal to a nominee or a board of nominees appointed by him and 

thereafter all the provisions of the Co-operative Societies Act relating to the settlement 

of disputes, procedure for settlement of disputes appeals against the decisions in such 

disputes, enforcement of the decisions, awards or orders in such proceedings, and all 

Guj. XXVII of 

1961. Land not vesting 

in Government 

to be charged for 

unrecovered 
dues in certain 

cases. 

Recovery of dues in 

respect of financial 

assistance to carry 

out State-Sponsored 
Scheme as arrears 

of land revenue. 

Bank eligible to 

become member of co- 

operative society. 

Inspection of 

books of co-

operative society 

by bank. 

Disputes 

between bank 

and co-operative 

society. 

Settlement of 

disputes. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

10 of 13 

other matters relating to such, disputes shall, mutatis mutandis apply as if it were a 

dispute within the meaning of section 96 of that Act. 

 

20. The provisions of section 157 of the Co-operative Societies Act shall, so far as may 

be apply to the recovery of any amount found due to a bank under section 19 as if such 

amount were a sum due to the Government. 

 

21. (1) If a co-operative society is unable to pay its debts to a bank from which it 

has borrowed, by reason of its members defaulting in the payment of the 

money due by them, the bank may direct the committee of such society to 

proceed against such members by taking all such actions as are provided by the 

Co-operative Societies Act. 

 

(2) If the committee of the co-operative society fails to proceed against its 

defaulting members within a period of ninety days from the date of receipt of 

such direction from the bank, the bank itself may, under intimation to the 

Registrar, proceed against such defaulting members in which event, the 

provisions of the Co-operative Societies Act and the rules and the bye-laws 

made thereunder shall apply, as if all references to the society or its committee 

in the said provisions, rules and bye-laws were reference to the bank. 

 

(3) Where a bank has obtained a decree or award against a co-operative society 

indebted to it, the bank may proceed to recover such moneys firstly from the 

assets of the co-operative society and secondly from the members of the co-

operative society to the extent of their debts due to the society. 

 

Explanation.—In this Act "committee", in relation to a co-operative 

society, means a committee as defined in clause (5) of section 2 of the Co-

operative Societies Act. 

 

22. The Registrar shall draw the attention of a bank financing a co-operative society to 

the defects noticed in every audit or inquiry or inspection conducted under the Co-

operative Societies Act, and shall also supply to the bank a copy of each of such audit, 

inquiry or inspection report if demanded in writing by it. 

 

CHAPTER VI 

MISCELLLANEOUS 

 

23. Nothing in the Bombay Money-lenders Act, 1946 or any other law relating to 

money lending and money-lenders or in any law relating to relief of agricultural 

indebtedness for the time being in force shall apply to financial assistance avalied of by 

an agriculturist from a bank. 

 

24. (1) Notwithstanding anything contained in any law for the time being in force 

mortgages executed after the commencement of this Act by the manager of a 

joint Hindu family in favour of a bank for securing financial assistance shall be 

binding on every member of such joint Hindu family. 

 

(2) Where a mortgage executed in favour of a bank is called in question on the 

ground chat it was executed by the manager of joint Hindu family for a purpose 

not binding on the members (whether such members have attained majority or 

not) thereof, the burden of proving the same shall lie on the party alleging it. 

 

25. Section 8 of the Hindu Minority and Guardianship Act, 1956, shall apply to 

mortgages in favour of a bank, subject to the modification that reference to the Court 

therein shall be construed as reference to the Collector or his nominee, and the appeal 

against the order of the Collector or his nominee shall lie to the State Government. 

 

26. Notwithstanding anything contained in the provincial Insolvency Act, 1920, or any 

corresponding law for the time being force, a mortgage executed in favour of a bank 

shall not be called in question in any insolvency proceed- ings on the ground that it was 

not executed in good faith for valuable con- sideration or on the ground that it was 

executed in order to give the bank a preference over other creditors of the mortgagor. 

 

 

Recovery of 

money awarded. 

Power of bank to 

proceed against 

defaulting 

members of a co- 
operative society. 

Audit inquiry and 

inspection report 

of societies to be 

made available to 

banks. 

Exemption- from 

legislag tions relatin to 

money lending and 

relief of agricultural 

indet bedness. 

Bom. XXXI 

1947. 

Mortgage executed 

by managers of joint 

Hindu families.  

Modified 

application of 

section 8 of Act 

XXXII of 1956. 

XXXII of 

1956. 

Mortgages not to 

be questioned on 
insolvency of 

mortgagors. 

V of 1920 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

11 of 13 

27. (1) The State Government may, by notification in the Official Gazette and 

subject to the condition of previous publication, make rules for Carrying out 

the purposes of this Act. 

 

(2) In particular and without prejudice to the generality of the foregoing power 

such rules may be made for all or any of the following matters, namely:- 

 

(a) the manner of serving notice on an agriculturist under the proviso to 

sub-section (1) of section 11; 
 

(b) any other matter which is to be, or may be, prescribed. 
 

(3) All rules made under this section shall be laid for not less than thirty days 

before the State Legislature as soon as may be after they are made and shall be 

subject to rescission by the State Legislature or to such modifications as the 

State Legislature may make during the session in which they are so laid or the 

session immediately following. 
 

(4) Any rescission or modification so made by the State Legislature shall be 

published in the Official Gazette and shall thereupon take effect. 
 

 

 

 

 

Power of State 

Government to 

make rules. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

12 of 13 

SCHEDULE 

 

(see section 5 (1) ) 

 

Declaration under sub-section(l) of section 5. 

 

I…….…………………(aged………………….years) residing 

at……………………..being desirous of availing myself of financial assistance from 

the…………………………..Bank………………make this declaration as required by 

section 5(1) of the Gujarat Agricultural Credit (Provision of Facilities) Act, 1979, that 

I…………………………own the land I have interest as a tenant in the land, in the area 

specified below and I hereby create a charge on the said land/interest in the said land, 

in favour of the Bank for securing the financial assistance which the bank may give 

and for all future assistance, if any, which the bank may give to me together with 

interest and costs and expenses thereon. 

 

Name of  Name of  Name of  Survey No. 

Village   Taluka   District   City Survey No. Boundaries  Areas 

Plot No. Plot Hissa, South North Hectares 

       No.        East   West 

 

 

 

 

 

Assessment Approximate Encumbrances, if any      Remarks  

--------------------Value-----------------------------------------------------------------------------------if any  

Rupees paise   Nature           When created   Amount 

 

 

 

 

 

In witness whereof I, Shri……………………………………………  

hereunder set my hand this…………………………………………………day 

of………………………………….. in the year one thousand nine hundred 

and..………………………………………………………… 

 

Witness 

 

Signed and delivered by the above named in the presence of- 

 

(1) 

 

(2) 

 

Signature of the declarant, 

 
 

 

 

Attested by : 

 

 

Forwarded with compliments to the Village Accountant or other designated 

revenue officer with a request to include the particlulars of the 

charge………………………………….created under the declaration in the Record of 

Rights and to return to the bank for its records. 

 
 

Manager/Agent. 

 

…………………..Bank. 

 

 

 

Date :……………………….    Place :…………………………. 



The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979. 

13 of 13 

 

Returned with compliments to the Manager/Agent……………………Bank. 

The charge created under the declaration is duly included in the Record of Rights on 

the………..day of……………………………..19………. 

 

 

 

Date :…………………………………………  Village Accountant or other 

designated revenue officer. 

 

Forwarded with compliments to the Sub-Registrar, with a request to record the 

particulars of the charge……………………………created under the declaration in this 

office. 

 

 

 

Manager/Agent 

 

…………………..Bank. 

 

 

 

Date :……………………….    Place :…………………………. 

 

Returned with compliments to the Manager/Agent …………………………… 

Bank. The charge created under the declaration is duly recorded. 

 

Date :……………………….      Sub--Registrar. 

 

 

 

 

 

 

 

 

 

 

----------------------- 

 

 
 

                                                        
1
 For Statement of Objects and Reasons, see Gujarat Government Gazette Extra- ordinary, Part 

V, dated the 21st March, 1979, p. 267-269.  

 This Act was assented to by the President on the 3rd June, 1979.