Disposal of sale-proceeds.

The proceeds of every sale effected under section 133, and confirmed under the preceding section shall be applied first in payment of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly in payment of any or all interest due on account of the mortgage or encumbrance in consequences whereof, the mortgaged or otherwise encumbered property was sold, and thirdly in payment of the principal due on account of the mortgage or encumbrance including costs and charges incidental to the recovery. If there remains any residue from the proceeds of sale, the same shall be paid to the person proving himself interested in the property sold or if there are more such persons than one, then to such persons up on their joint receipt or according to their respective interest therein, as may be determined by the Agriculture and Rural Development Bank: Provided that, before any such payments are made the unsecured dues owing;

1. (a) from the mortgagor or the debtor to the Agriculture and Rural Development Bank may be adjusted, and
2. (b) from any member or past member to whom the mortgagor or the debtor is indebted may also be adjusted under the written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.