The Maharashtra Cooperative Societies Act 1960

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, no mortgagor of property mortgaged to ¹ [an Agriculture and Rural Development Bank], shall except with the prior consent in writing of the bank, and subject to such terms and conditions as the bank may, impose, lease or create any tenancy rights on any such property:
Provided that, the rights of the ¹ [an Agriculture and Rural Development Bank] shall be enforceable against the tenant purchaser, the lessee or the tenant, as the case may be, as if he himself were a mortgagor.

(2) Where land, mortgaged with possession to ¹ [an Agriculture and Rural Development Bank], is in actual possession of a tenant, the mortgagor or the ¹ [an Agriculture and Rural Development Bank], shall give notice to the tenant to pay rent to the ¹ [an Agriculture and Rural Development Bank] during the currency of the lease and the mortgage, and on such notice being given the tenant shall be deemed to have attorn to the ¹ [an Agriculture and Rural Development Bank].

Notwithstanding anything contained in section 121, all moneys due under the mortgage shall unless other wise directed by the ¹ [State Agriculture and Rural Development Bank] or the Trustee and communicated to the mortgagor, be payable by the mortgagor to the ¹ [Agriculture and Rural Development Bank], and such payment shall be as valid as if the mortgage had not been so transferred and the ¹ [Agriculture and Rural Development Bank] shall in the absence of specific direction to the contrary, issued by the ² [Stage Agriculture and Rural Development Bank] or Trustee and communicated to the bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under mortgage.

Where any property mortgaged to an Agriculture and Rural Development Bank is wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the repay such portion of the loan as may be determined by the bank, 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 bank shall be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof.

Explanation. -- Security shall be deemed insufficient within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the rules, regulations or the by-laws of the Agriculture and Rural Development Bank

(1) Property purchased under section 133 (3) by, and property transferred under section 100 to, ² [Agriculture and Rural Development Banks], may be disposed of by such banks by sale within such period as may be fixed by the Trustee, subject to the, condition that such sales shall be in favour only of agriculturists eligible to hold land under the Bombay Tenancy and Agricultural Lands Act 1948, or any corresponding law for the time being in force, ³ [or in favour of Tribals, if such property belongs to a Tribal] or may by lease out by them on such terms and conditions as may be laid down by the State Government from time to time.

⁴ [Explanation.-- For the purposes of this sub -section and section 133 A; 'Tribal' means a person belonging to a Scheduled Tribe within the meaning of the Explanation to section 36 of the Maharashtra Land Revenue Code, 1966, and includes his successor in interest.]

(2) Nothing contained in any law for the time being in force fixing the maximum limit of agricultural holdings shall apply to the acquisition or holding of land by the5 [Agriculture and Rural Development Banks] under this section.

All loans granted by the ¹ [Agriculture and Rural Development Banks, all interests (if any) chargeable thereon, and costs (if any), incurred in making the same, shall when they become due, be recoverable by the ¹ [Agriculture and Rural Development Bank] concerned.

(1) If any instalment payable under a mortgage, hypothecation deed loan bond, surety bond or other instrument executed in favour of Agriculture and Rural Development Bank, or any part of such instalment, has remained unpaid for more than one month from the date on which it fell due, the bank shall, in addition to any other remedy available to the bank, apply to the Registrar for recovery of such instalments or part thereof by distraint and sale of the produce of the mortgaged or other wise encumbered land and properties of and on such land including the standing crops thereon or the movable property encumbered under hypothecation deed or loan bond. The instalments due or any part thereof shall also be recoverable by distraint and sale of the new property created by the debtor by converting the original movable property for which the loan was granted by the bank.

(2) On receipt of such application, the Registrar notwithstanding anything contained in the Transfer of Property Act, 1882, take action in the manner prescribed for the purpose of distraining and selling such produce or the properties referred to in sub section (1):
Provided that, no distraint shall be made after the expiry of twelve months from the date on which the instalment fell due.

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the Agriculture and Rural Development Bank or any person authorised by it 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 by public auction in the village in which the mortgaged property is situated or at the nearest place of public resort, without the intervention of the Court;
Provided that, no action shall be taken under this sub -section and no such power shall be exercised, unless and until --

(2) Where Agriculture and Rural Development Bank fails to take action against a defaulter under section 129 or 132 or under this section the Trustee may take such action. If such action is taken by the Trustee, the provisions of this Chapter and of any rules prescribed shall apply in respect thereto, as if all references to the Agriculture and Rural Development Bank in the said provision were references to the Trustee.

(3) Notwithstanding anything contained in any law for the time being in force, is shall be lawful for a primary Agriculture and Rural Development Bank to purchase any mortgaged property sold under this Chapter.

Notwithstanding anything contained in this Act or in any other law for. the time being in force, where the mortgaged or encumbered property belongs to a Tribal, it shall not be sold to any non-Tribal bidder at public auction under section 133 or otherwise transferred to a non-tribal under the provisions of this Act.

(1) On effecting the sale by ¹ [an Agriculture and Rural Development Bank] under section 133, the bank shall, in the prescribed manner, submit to the ¹ [State Agriculture Development Bank] and the result of the sales, and the ¹ [State Agriculture and Rural Development Bank] may, with the approval of the Registrar, confirm the sale or cancel it.

(2) Where the sale is effected by the ¹ [State Agriculture and Development Bank] or the trustee under section 133, the ¹ [State Agriculture and Development Bank] or the Trustee, as the case may be, shall in the prescribed manner submit to the Registrar a report setting forth the manner in which the sale has been effected and the result of the sale, and the Registrar may confirm or cancel the sale.

The proceeds of every sale effected under section 133 and confirmed under the preceding section, shall be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of all costs, charges and expenses incurred in connection with the sales or attempted sales, secondly in payment of any or all interest due on account of the mortgage ¹ [or encumberance) in consequences whereof the ² [mortgage or other wise encumbered property] was sold, and thirdly in payment of the principal due on account of the mortgage ¹ [or encumberance] including costs and charges incidental to the recovery.

If there remain any residue from the proceeds of sale, the same be paid to the person proving himself interested in the property sold, or if there are more such persons than one, then to such persons upon their joint receipt or according to their respective interest therein, as may be determined by the ³ [Agriculture and Rural Development Bank]:

Provided that, before any such payments are made the unsecured dues owing--

(1) Where a sale of mortgaged property has become absolute under section 134 and the sale-proceeds have been received in full by the ¹ [Agriculture and Rural Development Bank], the bank shall grant a certificate to the purchaser in the prescribed form certifying the property sold, the sale-price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on which the sale became absolute; and upon the production of such certificate the Sub-Registrar appointed under the India Registration Act, 1908, within the limits of whose jurisdiction the whole or any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register relating to immovable property.

(2) (a) Where the mortgaged property sold is in the occupancy of the mortgagor, or of some person on hi s behalf, or some person claiming under a title created by the mortgagor, sub sequent to the mortgage in favour of the ¹ [State Agriculture and Rural Development Bank] or ² [an Agriculture and Rural Development Bank] and a certificate in respect thereof has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person whom he may appoint to receive delivery on his behalf, in possession of the property.

(b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the same, and a certificate in respect thereof has been granted under the foregoing sub-section, the Collector shall, on the application of the purchaser and after notice to such tenants or other persons, order the delivery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and proclaiming to the occupant by beat of drum or other customary mode at some convenient place that the right, title and interest of the mortgagor have been transferred to the purchaser.

(3) Where any property is sold in the exercise or purported exercise of a power of sale under section 133, the title of the purchaser shall not be questioned on the ground that the circumstances required for authorising the sale had not arisen, due notice of the sale was not given, or the power of sale was otherwise improperly or irregularly exercised:

Provided that, any person who suffers damage on account of unauthorised, improper or irregular exercise of such power shall have a remedy in damages against the ¹ [Agriculture and Rural Development Bank].