Section 40 in The M.P. Shakari Krishi Aur Gramin Vikas Bank Adhiniyam 1999
40. Security not to be questioned in insolvency proceedings.
- Notwithstanding anything contained in the Provincial Insolvency Act, 1920 (5 of 1920), any security furnished to the State Development Bank or a District Development Bank shall not be called in question on the ground that it was not furnished in good faith for valuable consideration or on the ground that it was furnished in order to give such Bank a preference over the other creditors of the loanee.
