Section 109 in The West Bengal Co-Operative Societies Act, 1983
109. Constructive borrowing. -
(1)Where a co-operative credit society has granted a loan for improvement of any land to any person who, in the opinion of the co-operative credit society, has title to the said land or is in lawful possession thereof and the amount of the loan has been utilised wholly or in part for such improvement, any other person taking such land under a superior title or otherwise shall be liable to repay to the co-operative society so much of the loan as established to have been utilised for the improvement of the land as if that other person had executed the Gehan under section 53 for such part of the loan and shall be deemed to be the debtor to that extent for the purpose of enforcing the Gehan by sale or otherwise.(2)The Gehan executed or deemed to have been executed in favour of, and all other assets charged to, a primary co-operative credit society shall be construed to have been charged by the primary co-operative credit society to the central co-operative bank with effect from the date on which it was executed or deemed to have been executed.(3)The Gehan executed or deemed to have been executed in favour of, and all other assets charged or deemed to have been charged to, a cooperative land development bank shall be construed to have been charged by the co-operative land development bank to the central co-operative land development bank with effect from the date on which it was executed or deemed to have been executed.(4)Notwithstanding anything contained in any law for the time being in force, where a co-operative credit society grants loan to its member belonging to scheduled caste or scheduled tribe, or to any other member having restricted rights of alienation of any immovable property, such member may create a Gehan on such immovable property in favour of the co-operative credit society as security for such loan. If any such member defaults in making repayment of the loan, the co-operative credit society shall, without prejudice to any other remedy available under any law, contract or otherwise, be entitled to take possession of such immovable property and lease the same to any person belonging to the same caste or tribe as the defaulting member belongs to and appropriate the net receipts from the lessee in repayment of the loan, and the defaulting member shall not be entitled to recover possession of such immovable property until the loan has been repaid in full.(5)Before taking possession of any immovable property under sub-section (4), the co-operative credit society shall serve upon the defaulting member a notice of demand in writing for repayment of the outstanding amount of the loan within such period as may be specified in the notice stating that in default of such repayment within such period, the right of possession under sub-section (4) shall be enforced.
