Amendment status not verified — confirm the current text below against the official source.
(1) When any property is mortgaged to a co-operative land development bank for payment of a prior debt or part thereof of a mortgagor, the co-operative land development bank shall, notwithstanding 4 of 1882. the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, by serving a notice in writing in the prescribed manner require any person to whom such debt is due to receive payment of such debt or part thereof from it within such period as may be specifed in the notice. (2) The person on whom a notice is served under sub-section (1) shall be bound to receive payment of the amount tendered by the co- operative land development bank. If their is a disagreement between the mortgagor and such person as regards the amount of the debt, the receipt of the sum tendered by the co-operative land development bank shall not prejudice the right of such person to recover the balance amount of the debt claimed by him. (3) If any person does not accept the notice served under sub-section (1) or fails to receive payment of the debt or part thereof within the period specified in the notice, the debt or part thereof shall cease to carry interest from the expiry of such period.