Section 5 in Rajasthan Agricultural Credit Operations (Removal of Difficulties) Rules, 1976
5. Recovery of dues of the Banks by sale of immovable property.
(1) The District Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector having jurisdiction in the area wherein the immovable property is situated shall exercise the powers of the prescribed authority under section 13 (1) of this Act.(2)The Branch manager/Agent of the Bank concerned shall for the purpose of this section make an application to the Collector/ Additional Collector/Sub-Divisional Officer/Assistant Collector concerned giving the following particulars with respect to the loan sought to be recovered:(i)Name of the cultivator, [his heir or legal representative, as the case may be] [Added by G.S.R. No. 64, Notification No. F. 2(I) Agri./V/70, dated 4.8.1976 (published in Rajasthan Gazette. part IV-C, dated 26.8.1976 at page 253)];(ii)Certified copy of loan agreement;(iii)Certified statement of account;(iv)Amount overdue towards principal and towards interest and date on which it became overdue;(v)Certified copy of documents creating mortgage or charge with evidence regarding its registration;(vi)Other details of the immovable property sought to be sold such as valuation, detail of co-owners etc. Which may be available with the Bank;(vii)Details of any other effort made by the Bank to effect recovery; and(viii)Reasons, if known to the Bank for non-payment.(3)If upon receipt of this application along with the information detailed above, Collector/Additional Collector/Sub-Divisional Officer/ Assistant Collector is satisfied.(a)that the loan has been duly taken and the loan amount or an instalment is overdue;(b)the Bank has issued a demand notice by registered post with acknowledgement due, asking the cultivator to pay the overdue amount, and more than one month has elapsed.(c)the property sought to be sold has been mortgaged/Charged to the bank against the overdue loan; he may issue a notice to the cultivator informing him,(i)that an application for recovery of the loan due along-with the necessary documents has been filed by the concerned Commercial Bank for action under section 13 (1) of Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974;(ii)if the cultivator wishes to deny liability for payment of the amount determined as due, he should within 30 dyas of the receipt of this notice, file a petition denying liability and produce documentary and other proof to support his claim;(iii)the notice should state that if the cultivator does not deny liability or make payment, proceedings will be taken to effect recovery of the amount determined as overdue, through a sale of the immovable property specified in the notice.(4)If the cultivator denies his liability the Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector shall after hearing him decide his petition within a further period of two months.(5)If the cultivator does not deny liability or cannot shown sufficient cause for non payment, the Collector/Additional Collector/ Sub Division Officer/Assistant Collector shall order sale of the immovable property as per the application made by the Bank.(6)The proceeds of the sale of such property shall be appropriated for payment of the dues of the Bank and the cost of recovery and balance amount, if any, shall be paid to the cultivator.(7)[ For all distrains and all sales effected under sub-section 3 of section 5 or sub-section (1) of section 13 the procedure followed shall be similar to that prescribed for attachment and sale of movable or immovable property for recovery of arrears of land revenue under the Rajasthan Land Revenue Act, 1956, and rules framed thereunder".] [Substituted by G.S.R. No. 64 vide notification No. F. 2(I) Agri/V/70, dated 4.8.1976 (Published in Rajashan Gazette Part IV-C dated 26.8.1976)](8)When land or other immovable property is offered for sale by public auction in pursuance of an order for sale under section 13 for recovery of a loan due to the Bank, and no one offers to purchase it, for a price sufficient to pay to the Bank the money due to it, the Bank may instead of waiting for resale, close the recovery proceedings by acquiring the land or interest there under or other immovable property charged or mortgaged to it, in exercise of the powers vested in it under section 14.(9)For this purpose the Bank Manager or Agent concerned may apply to the Collector informing him of the intention of the bank to exercise this right.(10)The Collector shall thereupon stop all recovery proceedings and pass an order directing that necessary entries be made by the Sub-Registrar and Tehsildar concerned, in their books and record of rights, -vesting the rights to the property which belonged to the defaulting cultivator, in the name of Bank in discharge of all liabilities of the cultivator, for the amount of loan, for which the property was charged.(11)The Collector/Additional Collector/Sub-Division Officer/ Assistant Collector shall also if so requested take steps to handover the possession of such land or other immovable property to the Branch Manager/ Agent of the Bank concerned.(12)The Bank shall in such cases, sell the property so required by it within a period of [five] [Substituted by G.S.R. No. vide notification No. F. 2(I) Agri./V/70, dated 4.8.1976 (published in Rajasthan Gazette Part IV-C, dated 26.8.1976).] years from the date of taking over possession.(13)It may during this period lease out the property as per provisions of section 14 (3).(14)Any sale of such property shall subject to the following restrictions:(1)The buyer must be an agriculturist as defined in the Act.(2)[ Land acquired from a person who is a member of a Scheduled Caste or Schedule Tribe shall not be sold to persons who are not members of Scheduled Castes or Scheduled Tribes.] [Substituted by G.S.R. No. vide notification No. F. 2(I) Agri./V/70, dated 4.8.1976 (published in Rajasthan Gazette Part IV-C, dated 26.8.1976).](3)The buyer should not on acquisition of such land by sale, exceed the ceiling limit applicable to him under the law relating to ceilings on agricultural holdings.
