Section 34 in The Orissa Co-operative Societies Act, 1962
34. [ First charge of Society on certain assets. [Substituted by Orissa Act No. 19 of 1983 Section 14-See O. G. E. dated 11.10.1983.]
(1)Notwithstanding anything contained in any law for the time being in force, but subject to any claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a Society by any member or past or deceased member shall be a first charge upon the land or interest in any land, crops and other agricultural produce, cattle except those required for ploughing the field of the member, fodder of cattle, agricultural or industrial implements or machinery, raw materials for manufacture and any finished products manufactured from such raw materials belonging to such member, past member or forming part of the estate of such deceased member, as the case may be.(2)Any member owing any land or other immovable property or having interest in any land or in such property, who applies to the Society for a loan, shall make a declaration in the prescribed form declaring that thereby he creates in favour of the Society, a charge on such land or other immovable property or his interest in any such land or property, as the case may be, to secure the loan to be granted to him by the Society including the interest thereon.(3)The declaration made under Sub-Section (2)may be varied cancelled by the member at any time with the consent of the Society in whose favour such declaration has been made.(4)The declaration made under Sub-Section (2) and any variation or cancellation thereof made under Sub-Section (3) shall be sent by registered post by the Society concerned to the Sub-Registrar having jurisdiction over the area in which such land or property situates, on receipt of which the Sub-Registrar shall, if it is in order, register such declaration or the variation or cancellation thereof and issue a copy thereof to the said society. Where it is not in order, he shall return it to that Society without registration. The declaration or any variation or cancellation thereof shall have effect only on the date of registration.(5)No person shall transfer any property which is subject to a charge under Sub-Section (1) or Sub-Section (2) except with the previous permission in writing of the Society which holds the charge.(6)Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions of Sub-Section (5) shall be void.(7)Notwithstanding anything contained in the Provincial Insolvency Act 5 of 1920 or any corresponding law for the time being in force, the dues of a Society from a member in insolvency proceedings against him shall rank in order of priority next to the dues payable by him to Government.(8)Without prejudice to the provisions of Sub-Section (7), the charge created under Sub-Section (1) or Sub-Section (2) shall have priority over any claim of the Government in respect of a loan granted under the Land Improvement Loans Act, 19 of 1883 or the Agriculturists Loans Act 12 of 1884 or the Orissa State Aid to Industries Act 32 of 1978 after the grant of the loan by the Society anything contained in Sub-Section (1) notwithstanding.(9)The provisions contained in Section 85 shall mutatis mutandis apply in respect of a charge created in favour of Society under Sub-Section (1) or Sub-Section (2).]
