Section 18 of The Chutia Nagpur Encumbered Estates Act, 1876
The Manager, with the previous assent of the Commissioner, shall have power to raise any money which may be required for the settlement of the debts and liabilities (other than as aforesaid) to which the holder of the property is subject, or with which such property or any part thereof is charged, by demising by way of mortgage the whole or any part of such property for a term not exceeding twenty years from the said publication, or by selling, with the previous consent of the holder of the property and of the person (being of full age) who would be his heir if he died intestate, by public auction or by private contract, and upon such terms as the Manager thinks fit, such portion of the same property as may appear expedient. And no mortgagee advancing money upon any mortgage made under this section, shall be bound to see that such money is wanted, or that no more than is wanted is raised. Manager’s receipts.--And the receipt of the Manager for any monies paid to him as such, shall discharge the person paying the same therefrom and from being concerned to see to the application thereof. The power to mortgage conferred by this section shall not be exercisable until six months have elapsed from the publication of the order mentioned in section two.
Summary
- The Manager can raise money by mortgaging the property for a term of up to twenty years.
- The Manager can also raise money by selling parts of the property if it seems necessary.
- To sell any part of the property, the Manager must get the consent of both the owner and the adult who would inherit the property.
- The Commissioner must give his approval before the Manager can raise money through mortgage or sale.
- The Manager cannot use the power to mortgage until six months after the initial order for the estate was published.
- People who pay money to the Manager receive a receipt that clears them of further responsibility for how that money is used.
Practical examples
FAQ
1. Can the Manager sell the land without the owner's permission?
No, the Manager must have the consent of the property holder and the person who would be the heir (if they are an adult).
2. Can the Manager mortgage the land immediately after taking over?
No, the power to mortgage cannot be used until six months after the management order was published.
3. Does the Commissioner have to agree to these financial deals?
Yes, the Manager needs the "previous assent" of the Commissioner to raise money by mortgage or sale.
Test yourself
Q1.Under Section 18 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the mandatory waiting period before the Manager can mortgage the property?
Q2.According to Section 18 of The Chutia Nagpur Encumbered Estates Act, 1876, whose consent is required for the Manager to sell a portion of the property?
Q3.Under Section 18 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the maximum length of time for a mortgage created by the Manager?