Application of proceeds of sale

(1) The proceeds of every sale under this Chapter shall be applied firstly, in satisfaction of the arrears on account of which the sale was held and of the expenses of such sale, secondly, to the payment of any arrears of cesses due from the defaulter under any law for the time being in force, thirdly, to the payment of any other arrear payable to the Government by the defaulter, and forthly, to the payment of any arrears due form the defaulter to a co-operative society and the surplus, if any, shall then be payable to him, or where there are more defaulters than one, to such defaulters according to their respective interests in the property sold: Provided that the surplus shall not be paid to the defaulter or defaulter, as the case may be, until after expiry of two months from the date of the sale in the case of movable property or from such date as may be prescribed in the case of immovable property. (2) Notwithstanding anything contained in sub-section (1), the proceeds of sale under clause (c) of section 122 shall be applied first to the payment of arrears of land revenue payable by the defaulter for the immovable property sold up to the date of the sale, and the surplus, if any, shall be applied in accordance with sub-section (1).