The Tamil Nadu Co-Operative Land Development Banks Act, 1934
The Tamil Nadu Co-Operative Land Development Banks Act, 1934, Act 10 of 1934, is a State law that facilitates the working of co-operative land development banks in the State of Tamil Nadu. The source text shows that it creates a State Land Development Bank and primary land development banks, provides for their board and management, allows issue of debentures with State Government guarantee, and sets out recovery powers including distraint and sale of mortgaged property. The source text also shows later amendments, including changes appended from 35 of 1979.
What this law is about
The Tamil Nadu Co-Operative Land Development Banks Act, 1934, Act 10 of 1934, is a State law for the working of co-operative land development banks in the State of Tamil Nadu. It applies to the whole of the State of Tamil Nadu.
For a property owner or buyer, the main relevance is that the law governs a special co-operative lending system secured on land, and gives those banks legal powers to recover dues from mortgaged property and related produce.
Who and what it covers
The source text defines and refers to these bodies and people:
- the State Land Development Bank, meaning the Tamil Nadu Co-operative State Land Development Bank, Limited
- primary land development banks
- the Board of Directors of the State Land Development Bank
- a Trustee
- a small farmer, meaning a person owning or cultivating one hectare of land or less
The source text says there shall be a State Land Development Bank for the State of Tamil Nadu and as many primary land development banks as may be deemed necessary.
Main powers and subjects covered
The table of contents and extracted provisions show that the law covers:
- purposes for which a loan may be granted
- election of members of the Board
- appointment of an Executive Officer and manager
- agency of other co-operative banks
- issue of debentures by the Board
- guarantee by the State Government of principal and interest on certain debentures
- distraint of produce
- power of sale of mortgaged property
- appointment of a receiver
- recovery of sums due to a primary land development bank or the State Land Development Bank
- priority of mortgage over other claims
- verification of encumbrances
- registration of documents executed on behalf of these banks
- service of notices
- rule-making and regulation-making powers
- an overriding effect over other laws
Why it may affect landowners and buyers
A landowner who mortgages property to a primary land development bank or to the State Land Development Bank may be affected by recovery provisions in the law.
Key points from the source text include:
- mortgaged property can be sold in certain cases
- produce can be distrained and sold
- a receiver can be appointed
- the bank may have priority over other claims
- the purchaser's title is protected against challenge on the ground of irregularity, as stated in the chapter heading
A buyer or adviser should note from the source text that mortgages in favour of these banks, recovery action, and sale proceedings are central parts of the Act.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this law apply across Tamil Nadu?
Yes. The source text says the Act extends to the whole of the State of Tamil Nadu.
What institutions does this law set up or recognise?
The source text says there shall be a State Land Development Bank for the State of Tamil Nadu and as many primary land development banks as may be deemed necessary. It also defines the State Land Development Bank as the Tamil Nadu Co-operative State Land Development Bank, Limited.
Can a land development bank recover dues by selling mortgaged property?
Yes. The table of contents in the source text includes a chapter on power of sale, with provisions on when sale may be exercised, how sale is conducted, distribution of sale proceeds, certificate to purchaser, delivery of property, and recovery of sums due.
Does the law mention protection for small farmers or weaker sections?
Yes. The source text defines a small farmer as a person owning or cultivating one hectare of land or less. It also says representation in the Board shall be given to weaker sections of society such as small farmers, Scheduled Castes and Scheduled Tribes.
