GCSA 126 — Mortgages not to be questioned on insolvency of Mortgagors.

Gujarat Co-operative Societies Act, 1961

Statutory text

Notwithstanding anything contained in the Presidency-towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, a mortgage, executed in favour of a [land development bank] shall not be called in question 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.

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