Amendment status not verified — confirm the current text below against the official source.
(1) When a mortgage is executed in favour of a co-operative land development bank for payment of a prior debt or part thereof of the mortgagor, the bank shall, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, by issuing notice in 4 of 1882. writing in the prescribed manner, require any person to whom any such debt is due to receive payment of such debt or part thereof from the bank within such period as may be specified in the notice. (2) The person on whom such notice is served shall be bound to receive payment of the amount offered by the bank, but where there is a disagreement between the mortgagor and such person as regards the amount of the debt, or where the bank tenders less than the agreed amount of the debt, the receipt of the sum offered by the bank shall not prejudice the right, if any, of such person to recover the balance claimed by him. (3) If any person fails to accept such notice or to receive such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiry of the period specified in the notice.