Section 46 in The Assam Co-operative Societies Act, 1949
46. Prior claims of a society.
(1)Notwithstanding anything contained in Sections 60 and 61 of the Code of Civil Procedure, 1908, (V of 1908), any debt or outstanding demand due to a registered society by any member, surety, past member, or the estate of any deceased member shall be a first charge-(a)if such debt or demand is due in respect of the supply, or any loan to provide the means of such supply, of seed, manure labour, fodder for cattle or any other thing incidental to the conduct of agricultural operations-upon the crops or agricultural produce of such member, past member, or belonging to the estate of such deceased member, at any time within two years from the date of such supply or loan or from the date on which the last instalment of such supply or loan became repayable;(b)if such debt or demand is due in respect of the supply of, or any loan for the purchase of cattle, agricultural implements or warehouses, for the storage of agricultural produce-in the manner and to the extent aforesaid upon the crops or agricultural produce of such member, past member or belonging to the estate of such deceased member and also upon the cattle, agricultural implements or warehouse thus supplied or purchased wholly or in part from any such loan;(c)if such debt or demand is due in respect of the supply of, or any loan for the purchase of raw materials industrial implements machinery, workshop, warehouses or business premises-upon the raw materials or other things supplied or purchased by such member, past member or the deceased member wholly or in part from any such loan and also upon any articles manufactured from raw materials or with implements or machinery so supplied or purchased wholly or in part from any such loan;(d)if such debt or demand is due in respect of any loan for the purchase, improvement or redemption of land or for the purchase or construction of any house, building or any portion thereof-upon the land purchased, improved or redeemed or the house or building so purchased or constructed by such member, past member or the deceased member from any such loan.(2)Notwithstanding anything contained in this Act or any other law for the time being in force-(a)a member who makes an application for a loan to a Co-operative Society of which the majority of the members are agriculturists shall, if he owns any land or has any interest in any land as a tenant, make in such form as may be prescribed a declaration that he thereby creates a charge upon such land or, such interest or such portion thereof, as may be specified in the declaration for securing the repayment of the loan which the society may make to the members on the application and of future loans, if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;(b)a declaration made under Clause (a) may be varied or cancelled at any time by the members making it, with the consent of the society in whose favour it is made;(c)any land or interest in land in respect of which a declaration has been made under Clause (a) or any part of such land or interest, shall not be sold or otherwise transferred by the member making the declaration until the entire amount of the loan or loans taken by the member from the society together with interest thereon is paid to the society :Provided that nothing in this clause shall apply to any such part of such land or interest as may have been released from the charge created under this section under the proviso to Clause (d);(d)subject to any claim of the State Government in respect of land revenue or any sum recoverable as land revenue or as public demand, there shall be a first charge in favour of the society on the land or interest in land specified in the declaration made under Clause (a) for and to the extent of the dues recoverable from the member making the declaration on account of the loan or loans together with any interest thereon made to him by the society :Provided that if a part of such dues is paid by the member, the society may, on the application of the member and with the approval of the financing bank to which it may be indebted release from the charge such part of the land or interest in the land specified in the declaration made under Clause (a) as the society may, have due regard to the security of the outstanding amount of the loan or loans made to the member, deem proper;(e)every record of rights prepared and maintained under the Assam Land and Revenue Regulations, 1886, or any other law for the time being in force shall also include the particulars of every charge on any land or any interest thereon created under Clause (a).
