Right of primary agricultural credit society or the State Co-operative Bank to pay prior debts to Mortgagor

(1) Where a mortgage is executed in favour of a primary agricultural credit society or the State Co-operative Bank for payment of prior debts of the mortgagor, the society or the bank may, notwithstanding anything in any law, for the time being in force relating to the transfer of properties, by notice in writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice. (2) Where any such person fails to receive such notice of such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice: Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bound to receive payment of the amount offered by the primary agricultural credit society or the State Co-operative Bank, as the case may be towards the debt but such receipt shall not prejudice the rights, if any, of such person to recover the balance claimed by him.