Right of a registered Society to pay prior debts of a mortgagor

1) Where a mortgage is executed in favour of a registered society for payment of prior debts or part thereof, the mortgagor secured on the mortgaged property, the registered society may notwithstanding under the provisions of Section 83 and 84 of the Transfer of Property Act 1882 by notice in writing and served by registered post with acknowledgement due, require any person to whom any such debt is due to receive payment of such debt or part thereof from the society at its registered office 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 society but where there is disagreement or dispute between the mortgagor and such person as regard to the amount of the debtor where the society tenders less than the agreed amount of debt such person from enforcing his/her right to recover the balance amount claimed by him/her. 3) If any such refus 1 to receive such notice or such payment, such debtor part thereof, as the case may be, shall cause to carry interest from the expiry of the period specified the notice and the property mortgaged under sub-section (1) shall be deemed to have been freed from the encumbrance of iuch prior mortgage.