Section 41 in The M.P. Co-Operative Societies Act, 1960
41. [ First charge of co-operative societies on certain assets. [Substituted by M.P. Act No. of 1976.]
(1)Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the State Government in respect of land revenue or any money recoverable as arrears of land revenue or to any of claim of a development bank arising out of a loan granted at any time whatsoever under the Madhya Pradesh Sahkari Bhoomi Vikas Bank Adhiniyam, 1966 (No. 28 of 1966), or by a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandh (Bank) Adhiniyam, 1972 (No. 32 of 1973), any debt or outstanding demand owing to a society by a member or past member or deceased member shall be first charge in favour of the society on-(a)the land owned by such member or past member or forming part of the estate of the deceased member, as the case may be; and(b)his interest in any land as a tenant if such member owns such interest;against which such debt was granted or such outstanding demand stands, for and to the extent of the debt, or outstanding demand owing by him :Provided that where any prior claim of the State Government arises out of the loan granted under the Land Improvement Loans Act, 1883 (No. 19 of 1884), and such loan is granted after the grant of loan by a society, the loan granted by the society shall, notwithstanding anything contained in the said enactment, have priority over such claim of the Government.(2)No member shall alienate the whole or any part of the land or interest therein which is subject to charge under sub-section (1) until the whole amount borrowed by the member together with interest is paid in full:Provided that it shall be lawful for a member or a past member to mortgage in favour of-(i)a Co-operative Land Development Bank; or(ii)a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandh (Bank) Adhiniyam, 1972 (No. 32 of 1973); or(iii)the State Government such land or any part thereof under the rules made under the Madhya Pradesh Irrigation Act, 1931 (No. 3 of 1931), for supply of water from a canal to such land or any part thereof.(3)Any alienation made in contravention of the provisions of sub-section (2) shall be void as against any claim of the society in respect of the loan taken from it under this section.(4)Intimation in writing shall be given to the Tahsildar about the details of the debt or outstanding demand owing to the society from a member, past member or deceased member in the prescribed manner and the Tahsildar shall on receipt of such information, have it entered in the Record of Rights.]
