Amendment status not verified — confirm the current text below against the official source.
Where a Gehan is created or mortgage or hypothecation is executed in favour of the Agricultural Development Bank or primary bank for payment of prior debts of the person who created the Gehan or executed the mortgage or hypothecation, such bank may, Notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, (Central Act 4 of 1882), by notice in writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice, and if any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice, except in cases where such person proves to the satisfaction of the Board or the committee of the Primary bank, as the case may be, that the failure to receive notice or payment was due to causes beyond his control: Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the bank towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by him.