Himachal Pradesh Co-operative Agriculture and Rural Development Banks Act, 1979 12Chapter IV · Debentures

Section 12 · [ Charge on movable or immovable property of the borrower for amounts borrowed. [Section 12 Substituted vide H.P. Act No, 16 of 1987 w.e.f, 16 11-87.]

(1)

Notwithstanding anything contained in the Himachal Pradesh Co-operative Societies Act, 1968 (3 of 1969) or in any other law for the time being in force, any person owning any land or having interest in any land a tenant or occupier or owning any other movable or immovable property who applies to the Agriculture and Rural Development Bank for a loan, shall make a declaration in the prescribed form creating a gehan or mortgage or hypothecation in favour of the Agriculture and Rural Development Bank on the land or other movable or immovable property or interest therein or any movable property or movable assets to be acquired with the loan, specified in the declaration, for the repayment of the loan or advance granted or to be granted to him by the Agriculture and Rural Development Bank, together with interest on such amount of the loan or advance and expressly reserving in favour of the Agriculture and Rural Development Bank a right of sale without intervention of court, in case of default.

(2)

A declaration under sub-section (1) may be varied or cancelled at any time by the member with the prior approval of the Agriculture and Rural Development Bank.

(3)

No land or other movable or immovable property or any movable property or movable assets to be acquired with the loan or advance in respect of which a declaration under sub-section (1) has been made and no part thereof or of the interest in such land or movable or immovable property shall, without the consent of the Agriculture and Rural Development Bank, be sold or otherwise transferred until the entire amount of the loan or advance taken by the member from the Agriculture and Rural Development Bank, together with interest thereon, has been paid to the bank, and any transaction made in contravention of this sub-section shall be null and void.

(4)

Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908) or any other law for the time being in force, it shall not be necessary to register any gehan or mortgage or hypothecation created or executed in favour of the Agriculture and Rural Development Bank; provided the Agriculture and Rural Development Bank sends, within such time and in such manner as may be prescribed, a copy of the declaration of instrument whereby the gehan or mortgage or hypothecation has been created or executed for the purpose of securing repayment of the loan, to the registering officer within the local limits of whose jurisdiction the whole or any part of the property to which the gehan or mortgage or hypothecation relates is situated.

(5)

On receipt of the copy of the declaration or instrument sent under sub-section (4), the registering officer shall file a copy or copies thereof, as the case may be, in Book No. 1, referred to in section 51 of the Registration Act, 1908 (16 of 1908) and thereupon, such gehan or mortgage or hypothecation shall be deemed to create an interest in the property to which the declaration or instrument relates and shall constitute notice to any one dealing with the said property.

(6)

Any person who makes any false statement in a declaration under sub-section (1) shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.]

The offence at a glance

Maximum punishment: 6 months
Fine: ₹2,000
Cognizable: Non-cognizable
Bailable: Bailable
Compoundable: Not compoundable
Triable by: Any Magistrate

Non-cognizable — Police cannot investigate without a Magistrate's order
Bailable — Bail is your right — it can be granted at the police station

Derived from the First Schedule Part II rule — not listed section by section

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