Right of [an Agricultural Development Bank] to pay prior debts of mortgagor.

(1) [Where a mortgage is created in favour of] an [Agricultural Development Bank] for payment of prior debts of the mortgagor, the bank may, notwithstanding anything in the Transfer of Property Act, 1882, 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 or 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 [Agricultural Development Bank] towards the debt but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.