Section 40 in The M.P. Co-Operative Societies Act, 1960
40. Prior claim of society on certain assets.
- [(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the State Government in respect of land revenue or any money recoverable as arrears of land revenue and to any claim of a development bank arising out of a loan granted at any time whatsoever under the Madhya Pradesh Sahkari Bhoomi Vikas Bank Adhiniyam, 1966 (28 of 1966), any debt or outstanding demand owing to a society by any member or past member or deceased member, shall be a first charge upon the crops and other movable property belonging to such member, past member or forming part of the estate of the deceased member, as the case may be :Provided that where any prior claim of the State Government arises out of a loan granted under the Land Improvement Loans Act, 1883 (XIX of 1883) or the Agriculturists Loans Act, 1884 (XII of 1884) and such loan is granted after the grant of loan by a society the loan granted by the society shall, notwithstanding anything contained in the said enactments, have priority over such claim of the Government.] [Substituted by M.P. Act No. 1 of 1968 [w.e.f. 5-2-1968].](2)No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the society which holds the charge :Provided that it shall always be lawful for a member or past member to create a charge in favour of a Development Bank under the Madhya Pradesh Sahkari Bhoomi Vikas Bank Adhiniyam, 1966 (28 of 1966) for the dues thereof.(3)Notwithstanding contained in any law for the time being in force any transfer of property made in contravention of the provisions of sub-section (2) shall be void as against any claim of the society in respect of any debt or outstanding demand owing to it which is a first charge on such property under sub-section (1).
