First charge of cooperative society on certain assets

§39

Summary

Notwithstanding anything contained in the Provincial Insolvency Act, 1920, or in the Code of Civil Procedure, 1908 or in any other enactment relating to land-tenure for the time being in force, any debt or outstanding demand due to a co-operative society by any member past or present or stranding against the estate of any deceased member, shall subject to any claim of the Central Government or the State Government arising from a loan granted by it before, but not after, the grant of the loan by the society, or in respect of land revenue or any sum recoverable as arrears of land revenue, be a first charge- (a) if such debt or demand is due in respect of the supply of, or any loan to provide the means for, seed, manure, labour subsistence, fodder for cattle or any other thing incidental to the conduct of agricultural operations, upon the crops and agricultural produce of such member ; (b) if such debt or demand is due in respect of any loans to provide the means for paying the rent or revenue of the land or for irrigation facilities, upon the land whose rent or revenue has been so paid or as the case may be, on which the irrigation facilities have been provided ; (c) if such debt or demand is due in respect of supply of, or any loans to provide the means for the purchase of cattle, or other live-stock, or for the purchase, repair or maintenance for agricultural implements, transport equipments or equipment for dairy or for other activities relating to animal husbandry, or for making, repairing or purchasing of farm house or shed for cattle or for other live-stock or for making, repairing or purchasing of warehouse for storage of agricultural produce, then upon the farm-produce of such members and also upon the cattle, live-stock so purchased, or upon the equipments, warehouse, farmhouse or shed so purchased, repaired, maintained or made wholly or partially out of any such loan, and if the borrower is a landholder, then upon his land also, at any time within three years from the date on which the last installment of such loan becomes repayable ; (d) if such debt or demand is due in respect of the supply of, or any loan for the purchase of, raw material, industrial implements, plant and machinery, workshops, warehouse or business premises upon the raw material or other things so supplied or purchased by such member and in the case of a debt or demand in respect of the supply, or for the purchase of raw materials, also upon the articles manufactured from such raw material ; (e) if such debt or demand is due in respect of any loan for the purchase or redemption of land, upon the land so purchased or redeemed ; (f) if such debt or demand is due in respect of any loan for the purchase or construction of any house or building or any portion thereof or in respect of the supply of materials for such constructions, upon the house or building or materials so purchased or constructed or supplied ; and (g) if such debt or demand is due in respect of any loan of Rs. 500 or more for reclaiming or protecting land or for effecting improvement on land or for preparation of land for orchard or plantation or for purchase of cattle, agricultural implements, machinery, upon the land so sought to be reclaimed, protected, improved or prepared or upon the land for the use of which the implements or machinery are sought to be purchased and in case of purchase of cattle, upon any land of the borrower ; Provided that along with the charge created under this section all other property of the indebted member including any amount payable to him by a society shall be liable to attachment and sale in execution of a decree in favour of the society irrespective of the object of the loan.

Notwithstanding anything contained in the Provincial Insolvency Act, 1920, or in the Code of Civil Procedure, 1908 or in any other enactment relating to land-tenure for the time being in force, any debt or outstanding demand due to a co-operative society by any member past or present or stranding against the estate of any deceased member, shall subject to any claim of the Central Government or the State Government arising from a loan granted by it before, but not after, the grant of the loan by the society, or in respect of land revenue or any sum recoverable as arrears of land revenue, be a first charge- (a) if such debt or demand is due in respect of the supply of, or any loan to provide the means for, seed, manure, labour subsistence, fodder for cattle or any other thing incidental to the conduct of agricultural operations, upon the crops and agricultural produce of such member ; (b) if such debt or demand is due in respect of any loans to provide the means for paying the rent or revenue of the land or for irrigation facilities, upon the land whose rent or revenue has been so paid or as the case may be, on which the irrigation facilities have been provided ; (c) if such debt or demand is due in respect of supply of, or any loans to provide the means for the purchase of cattle, or other live-stock, or for the purchase, repair or maintenance for agricultural implements, transport equipments or equipment for dairy or for other activities relating to animal husbandry, or for making, repairing or purchasing of farm house or shed for cattle or for other live-stock or for making, repairing or purchasing of warehouse for storage of agricultural produce, then upon the farm-produce of such members and also upon the cattle, live-stock so purchased, or upon the equipments, warehouse, farmhouse or shed so purchased, repaired, maintained or made wholly or partially out of any such loan, and if the borrower is a landholder, then upon his land also, at any time within three years from the date on which the last installment of such loan becomes repayable ; (d) if such debt or demand is due in respect of the supply of, or any loan for the purchase of, raw material, industrial implements, plant and machinery, workshops, warehouse or business premises upon the raw material or other things so supplied or purchased by such member and in the case of a debt or demand in respect of the supply, or for the purchase of raw materials, also upon the articles manufactured from such raw material ; (e) if such debt or demand is due in respect of any loan for the purchase or redemption of land, upon the land so purchased or redeemed ; (f) if such debt or demand is due in respect of any loan for the purchase or construction of any house or building or any portion thereof or in respect of the supply of materials for such constructions, upon the house or building or materials so purchased or constructed or supplied ; and (g) if such debt or demand is due in respect of any loan of Rs. 500 or more for reclaiming or protecting land or for effecting improvement on land or for preparation of land for orchard or plantation or for purchase of cattle, agricultural implements, machinery, upon the land so sought to be reclaimed, protected, improved or prepared or upon the land for the use of which the implements or machinery are sought to be purchased and in case of purchase of cattle, upon any land of the borrower ; Provided that along with the charge created under this section all other property of the indebted member including any amount payable to him by a society shall be liable to attachment and sale in execution of a decree in favour of the society irrespective of the object of the loan.

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