The proceeds of every sale effected under seotion 133 and Disposal of

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 in consequence whereof the mortgaged property was sold, and thirdly, in payment of the principal due on account of the recovery. If there remain any residue from the preceeds of sale, the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons then one, then to such persons upon their joint receipt or according to their respective interest therein as may be determined by Land DevelopmentBank : Provided that, before any Suoh payments are made the unsecured dues owing— (a) from the mortgage! to the Land Development Bank may be adjusted, and (b) from any member or past member to whom the mortgagor 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.