PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS AND THE PUNJAB LAND
IMPROVEMENT SCHEMES (AMENDMENT) ACT, 1977 THE PUNJAB CO-OPERATIVE LAND MORTGAGE BANKS AND THE
PUNJAB LAND IMPROVEMENT SCHEMES (AMENDMENT) ACT, 1977 [Act No. 14 of 1977] [06th October, 1977] An Act to amend the Punjab Co-operative Land Mortgage
Banks Act, 1957 and the Punjab Land Improvement Schemes Act, 1963. Be
it Enacted by The Legislature of The State of Punjab in The Twenty-Eighth Year
of The Republic of India as Follows:-- This
Act may be called the Punjab Co-operative Land Mortgage Banks and the Punjab
Land Improvement Schemes (Amendment) Act, 1977. In
the Punjab Co-operative Land Mortgage Banks Act, 1957, after Chapter III, the
following Chapter shall be inserted, namely:-- "CHAPTER III-A FINANCING OF SCHEMES PREPARED UNDER THE PUNJAB LAND
IMPROVEMENT SCHEMES ACT, 1963, BY THE MORTGAGE BANKS 11-A. Financing of land improvement scheme by
Mortgage Bank (1) In every case in which the Bank sanctions financing
of a scheme under sub-section (2) of section 13-A of the Punjab Land
Improvement Schemes Act, 1963, the Mortgage Bank shall be competent to advance
loan to the landowners who will be affected by the scheme equivalent to the
estimated amount falling to the share of each landowner and the amount of such
loan shall be disbursed to the Soil Conservation Officer responsible for
executing the scheme on behalf of the landowners without any authority from
them. (2) The amount of loan so advanced shall be deemed to
be loan advanced by the Mortgage Bank to such landowners and shall be subject
to all the terms and conditions on which the Mortgage Bank advances loans to
its members for a purpose connected with the improvement of land. 11-B. Landowner to become member of Mortgage Bank (1) As soon as the first instalment of loan is
disbursed, the landowner on whose behalf the loan is disbursed shall be deemed
to have become member of the Mortgage Bank which advanced the loan and the land
of such landowner specified in the scheme shall stand mortgaged with the Bank
by way of simple mortgage as security for the recovery of the loan and interest
thereon. The copy of the scheme forwarded to the Bank by the Department shall
constitute the title deed for the aforesaid mortgage. (2) The Mortgage Bank will be competent to charge one
rupee as admission fee and ten rupees as share money from each person who
becomes a member by virtue of the provisions of the preceding sub-section and
such an amount shall be deemed to be a part of the loan. (3) The Government may guarantee in such manner as it
thinks fit the repayment of the principal and interest of any loan proposed to
be advance by the Bank under section 11-A. 11-C. Mortgage to take precedence over other
charges In
every case in which land stands mortgaged with a Mortgage Bank under section
11-B the said mortgage will take precedence over all the previous charges and
mortgages on the said land whether created by act of parties or by operation of
any law: Provided
that in the matter of realisation, the amount due to the Central Government
under a Central Act relating to the levy of any tax, for the time being in
force, shall have priority over the dues of the Mortgage Bank. 11-D. Right of recovery of loan by Mortgage Bank
not to be affected Nothing
contained in the Punjab Land Reforms Act, 1972 or any other law for the time
being in force shall affect the right of the Mortgage Bank to recover the loan
and the interest thereon under this Act.". In
the Punjab Land Improvement Schemes Act, 1963 (hereinafter referred to as the
Land Improvement Act), in section 2, clause (a) shall be renumbered as clause
(aaa) and before clause (aaa) as so renumbered, the following clauses shall be
inserted, namely:-- "(a)
'Bank' means a Mortgage Bank as defined in clause (d) of the Punjab
Co-operative Land Mortgage Banks Act, 1957; (aa)
'Department' means Soil Conservation and Engineering Department.". In
the Land Improvement Act, after section 13, the following section shall be
inserted, namely:-- "13-A. Special provisions for financing of
schemes by Banks (1) When the Department is of the opinion that a scheme
which has come into force under section 11 may, for the purposes of execution,
be financed by the Bank, the Department shall send a copy of the same to the
Bank alongwith the following particulars:-- (i) a map indicating the works to be carried out, the
estimated cost of each work and the total estimated cost of the scheme; (ii) economic and technical viability of the scheme
including cost benefit ratio; (iii) a certificate from an officer of the Department in
the prescribed form to the effect that the lands to be benefited from and
included in the scheme are sufficient security for the purpose of recovering
cost of the scheme and the interest thereon; (iv) the names of the landowners, khasra numbers of the
land included in the scheme alongwith the area of each landowner and the
classification thereof, whether irrigated, unirrigated or banjar; (v) the estimated rate of recovery of cost per hectare;
and (vi) the estimated amount to be recovered from each
landowner, the rate of interest, the period within which such amount is
recoverable and the number of instalments of recovery. (2)
On
receipt of a copy of the scheme along with the particulars mentioned in
sub-section (1) the Bank may, after following such procedure as may be
prescribed, sanction the financing of the scheme and intimate the Department
accordingly. (3)
In
every case in which financing of a scheme is sanctioned the Department shall
issue a notification in the prescribed form to the effect that the Bank is
prepared to finance the scheme and those landowners who do not want to avail of
the facility of financing by the Bank may deposit the amount of estimated cost
falling to their respective shares with the Department within one month of the
date of issue of the notification. (4)
After
the expiry of the period of one month of the issue of the notification under
sub-section (3), the Department shall intimate to the Bank the estimated amount
which is to be financed by it for executing the scheme and in calculating the
same, the amount, if any, deposited by the landowners under sub-section (3)
shall be excluded. (5) The Bank shall advance the amount calculated under
sub-section (4) to the Department in such number of instalments as the
circumstances of each case may require; Provided
that the advance shall be made in such a manner that execution of the scheme is
not withheld or delayed unnecessarily. (6)
If
during execution of any scheme the Soil Conservation Officer is of the opinion
that the scheme cannot be completed with the amount intimated to the Bank under
sub-section (4), he shall send a revised estimate to the Bank which may
sanction an additional amount so as to cover the difference and when such a
sanction is given the provisions of the preceding sub-sections shall mutatis
mutandis apply. (7)
After
the completion of the scheme, any amount advanced by the Bank which remains
unutilised shall be repaid to the Bank as advance recovery and any amount which
remains so unutilised out of the amount received from the landowners under
sub-section (3) shall be repaid to them. (8) In every case where the Bank advances loan for the
execution of the scheme the provisions of section 14, section 15 and section
16, except those relating to the preparation of a statement in the prescribed
form giving the particulars referred to in clause (vi) of sub-section (1),
shall not apply.". In
the Land Improvement Act, after section 19, the following section shall be
inserted, namely:-- "19-A. Entries of mortgages with the Bank in
the record of rights Where
the Bank finances any scheme under section 13-A, brief particulars of the
mortgage created under section 11-B of the Punjab Co-operative Land Mortgage
Banks Act, 1957, shall be entered in the prescribed manner in the record of
rights and where there is no record of rights, in such revenue record as may be
prescribed.".
Preamble - PUNJAB CO-OPERATIVE LAND
MORTGAGE BANKS AND THE PUNJAB LAND IMPROVEMENT SCHEMES (AMENDMENT) ACT, 1977PREAMBLE