Section 4 in Rajasthan Agricultural Credit Operations (Removal of Difficulties) Rules, 1976
4. Distraint and Sale of Crop or other movable property.
(1)The District Collector/Assistant Collector/Additional Collector of the District/Sub-Divisional Officer of the Sub-Division, within whose jurisdiction, the bank or its branch which disburse the loan is situated, shall be the official designed by the State Government for exercising powers for the purpose of section 5(3). However, in case of standing crop. other produce or other movable property attached to or installed on the land, the Collector/Additional Collector/ Assistant Collector of the District/Sub-Divisional Officer/Assistant Collector officer of the Sub-Division where the property is situated shall be the designed official, in case the bank or its branch is not located in that District/Sub-Division.(2)For the purpose of distraint and sake in the event of failure of the cultivator to pay an overdue loan, Branch Manager/Agent of the Bank shall make an application to the Collector/Additional Collector/Sub-Divisional Officer concerned giving the following particulars:(i)Name of the cultivator [his heir or legal representative, as the case may be] [Vide notification No. F.2(I) Agri./V/76, dated 10.3.1976 (Published in Rajasthan Gazette Ex.-ord., Pt. IVC(1), dated 10.3.1976)],(ii)Certified copy of loan agreement;(iii)Certified statement of account;(iv)Amount overdue towards principal and towards interest with date on which it became overdue;(v)Description crop/other movable property charged, including location and details of defaulter's interest or share thereof;(vi)Description of property required to be distrained and sold;(vii)Description of efforts made by the Bank to effect recovery, if any; and(viii)Reasons, if known to the Bank for non-payment.(3)On receipt of the application, along with the necessary documents and information, if the Collector/additional Collector/ Sub-Divisional Officer/Assistant Collector concerned is satisfied that(a)the cultivator has taken a loan from the bank against a charge on the property sought to be distrained;(b)the Charge has been proper ly affected;(c)the loan or an instalment of it is over due;(d)the Bank has issued a demand notice by registered post with acknowledgement due asking the cultivator to pay the overdue amount and a period of one month has elapsed without payment being made; he shall make an order for distraint of the said property.(4)The Collector/Additional Collector/Sub Divisional Officer/ Assistant Collector concerned shall also issue a show cause notice to the defaulter asking him to make payment within 15 days or to explain why the distrained property may not be put to sale in case of default. Copy of this notice should also be sent to the Bank/Branch manager/Agent of the Bank.(5)After the period of show cause notice has expired, if the defaulter has not made payment or has not entered into any satisfactory arrangements with the authorised representative of the Bank for payment '[or where the cause shown in considered to be insufficient] The Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector concerned shall order sale of the property distrained.(6)The proceeds of the sale shall be appropriated to payment, of all dues outstanding including cost of recovery, to the Bank and the surplus, if any, shall be paid back to the cultivator.
