Section 40 in Himachal Pradesh Co-operative Agriculture and Rural Development Banks Act, 1979
40. [ Gehan or mortgage or hypothecation not to be questioned lo insolvency proceedings. [Section 40 Substituted vide H.P. Act No. 16 of 1987.]
- Notwithstanding any thing contained in the Insolvency Act, 1955 (2 of 1956), a gehan created or mortgage or hypothecation executed in favour of the Agriculture and Rural Development Bank shall not be called in question on the ground that it was not created or executed in good faith or for valuable consideration or on the ground that it was created or executed in order to give such bank a preference over the other creditors of the person who created the gehan or executed the mortgage or hypothecation].
