Section 119 in West Bengal Co-operative Societies Act, 2006
119. Constructive borrowings.
(1)Where a credit Co-operative society has granted a loan for improvement of any land to any person who in its opinion, 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 pay to the credit Co-operative society such loan as if that other person had executed the Gehan under section 55 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 sole or otherwise.(2)The Gehan executed or deemed to have been executed in favour of, and all other assets charged to, a financing bank or a Primary Agricultural Credit Co-operative society shall be construed to have been charged or deem to have been charged by the said Co-operative society to the central Co-operative bank or the financing bank, as the case may be, 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 Co-operative agriculture and rural development bank, shall be construed to have been charged by the said bank to the West Bengal State Co-operative agriculture and rural 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 the credit Co-operative grants loan to its member belonging to scheduled castes or scheduled tribes, or to any other member having restricted rights of alienation of any immovable property, such member may create Gehan on such immovable property in favour of the credit Co-operative society as security for such loan. If any such member defaults in making repayment of loan, the credit Co-operative 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 castes or tribes as the defaulting member belongs to and appropriate the next receipts from the lessee in repayment of loan and the defaulting member shall not be entitled to recover possession of such immovable property until loan has been repaid in full.(5)Before taking possession of any immovable property under sub-section (4), the credit Co-operative society shall serve upon the defaulting member a notice of demand in writing for repayment of the outstanding amount of loan within sixty days from the date of receipt of the notice stating that in default of such repayment within the said period, the right of possession under sub-section (4) shall be enforced.
