• Recoveries against agricultural lands

Back ground:
•	the subject is a defaulter to the financial institution/bank.
•	the type of loan is availed in ‘ non agricultural ’
•	in order to recover his amounts the lender/s wants to proceed against the properties that are not mortgaged to the bank/institution hither too.
In this scenario can the lenders go against the properties in case if they happen to be agricultural lands?
If so what are the modalities /legal steps, and where they have to be initiated.
•	whether abj can be initiated in case of agricultural lands.
•	in the absence of sale deeds/for any reasons, if ‘ ror’ ‘rtc’ pahanis’ adangal are only in the name of defaulters available what are the remedies.
•	can we prey before the court to direct the mro concern to note the lien of the bank/institution in the specific column of ‘ror’ ‘rtc’ pahanis or adangals, where the loan particulars ought to have been mentioned. ex: column '11' in karnataka, column '13' in case of ap & telelgana , similar with other states. ' particulars of loan amounts that are not registered' is the narration in the specific column.
Asked 4 years ago in Property Law
Religion: Hindu

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8 Answers

Attachment of Immovable Properties as per Rule 54 of Order 21 of the Code of Civil Procedure 1908, states:-

Sec :-60. Property liable to attachment and sale in execution of decree.--

Provided that the following particulars shall NOT be liable to such attachment or sale, namely:--

(c) houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belong­ing to [an agriculturist or a labourer or a domestic servant] and occupied by him;

2)under section 60 Clause (c)-

Under this clause, the main residential building and all the other building attached to it, belonging to agriculturist, labourer or a domestic servants, are exempted from sale and attachment in execution of a decree

3) For the application of this clause an agriculturist includes a small holder who tills the soil and cultivates it . The term includes a person who personally engages himself in tilling the soil and whose livelihood depends upon the proceeds derived from the tillage of land

4)as per Section 31(i) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the provisions of the SARFAESI Act do not apply to any security interest created in agricultural land

5) lenders cannot attach agricultural lands of the borrower

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0


There is no express provision for bar of attachment of agricultural Property, you can proceed as any other property. The attachment of house of the agriculturist and its precincts are not liable to be attached under CPC.

Thanks & Regards,

Ramakant Singh

Ramakant Singh
Advocate, Delhi
34 Answers
4 Consultations

4.0 on 5.0

1. In the case of secured loan the creditor as per the provision of SARFAESI Act can proceed only agaisnt the mortgaged proeprty only.

2.After attachment, auction and sale of the security if there remains any shortfall then only you can file recovery suit and on grant of money decree you cal apply for attachment for other proeprty of the borrower.

3. So without exhausting the remedy of secured assets the creditor can not go for unsecured asset of the borrower.

4. As state above once the secured asset is sold out to recover the loan amount and recovery suit si filed to recover balance amount then the creditor can apply for attachment of other assets of the borrower before judgment so its claim for money is not frustrated during the pendency of the suit..

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Dear Cleint,

Bank cannot proceed against the properties not mortgage to it.

What kind of defaulter - Loan or other.

If loan than secured or unsecured.

WELL, bank has no power to proceed to recover from properties not mortgage to it, but have to approach court, case will decide on merit and than court will order recovery and if no means to pay than attachment of property.

Recovery from agriculture land is permissible.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Though sarfaesi act not applicable on agriculture properties but bank can file suit for recovery of loan and after obtaining decree they will file execution and execute it from proceed of agricultural land.

Rahul Sachdeva
Advocate, Moga
8 Answers

4.0 on 5.0

In this scenario can the lenders go against the properties in case if they happen to be agricultural lands?

The agricultural landed properties are not exempted under RDDB and FI act 19193

When a borrower fails to repay the money to the Bank, what the Bank can do for recovering the loan is to file a civil suit earlier.

The RDDBFI Act, 1993 enables the Bank to approach the Tribunals when the debt exceeds the prescribed limit i.e. Rupees Ten Lakhs.

Under RDDBFI Act, 1993, the Debt Recovery Tribunal will adjudicate the amount due and passes the final award.

The Banks or Financial Institutions can invoke the provisions of SAFAESI Act, 2002 only in respect of secured assets and it should comes under the definition of NPA and the amount of due must exceed Rupees One Lakhs NPA loan account is more than twenty percentage of the principal and interest and not all loan.

if we talk about the ordinary money recovery suit filed under the civil procedure in the Civil Court it will take a long to decide, and the laws which specifically deals with the recovery matters like Recovery of Debts Due to Banks and Financial Institutions Act 1993, it only competent to deals with the unsecured loan

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0


1) Since the loan granted is a non agricultural land, banks can proceed to recover the money by proceeding against the personal guarantor under DEBT RECOVERY TRIBUNAL ACT

2) However since the personal guarantor has not mortgaged the land to the financial institution, it is the duty of the bank to show that the Personal Guarantor is liable to repay the monies due from the borrower and that the personal properties(agricultural properties) need to be attached by DRT for recovery of monies.

3) You can pray the court to issue orders to Mandal Revenue office and the Collector to record the lien of the bank/Institution in Revenue records and also request court to issue prohibition orders to Sub-Registrar so as to prevent fraudulent land transfers of the properties belonging to personal guarantor.

4) Please note SARFASEI ACT will not be applicable for agricultural lands and hence you will need to file the suit for recovery only under Debt Recovery Tribunal act.

You may refer to judgments of Delhi and Allahabad High court on Sahara case which is similar to your query in DRT.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2169 Answers
394 Consultations

5.0 on 5.0

You need to first apply for the injunction from the court for the same. Once you get injunction everything can be taken care of

Prashant Nayak
Advocate, Mumbai
27278 Answers
88 Consultations

4.4 on 5.0

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