Amendment status not verified — confirm the current text below against the official source.
Right of Land Development Bank to pay prior debts of mortgagor.- (1) Where a mortgage is executed in favour of a land development bank for payment of prior debts of the mortgagor, the 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 debt or part thereof from the bank at its registered office within such period as may be specified in the notice. (2) Where 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: 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 Land Development Bank towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.