Section 26 in The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979
26. Mortgages not to be questioned on insolvency of mortgagors.
- Notwithstanding anything contained in the Provincial Insolvency Act, 1920, (V of 1920) or any corresponding law for the time being in force, a mortgage executed in favour of a bank shall not be called in question in any insolvency proceedings on the ground that it was not executed in good faith for valuable consideration or on the ground that it was executed in order to give the bank a preference over other creditors of the mortgagor.
