Section 137 in The Gujarat Co-Operative Societies Act, 1961
137. Disposal of sale proceeds.
- The proceeds of every sale effected under Section 134 and confirmed under Section 136, 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 the 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 mortgage 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 upon their joint receipt or according to their respective interest therein, as may be determined by the [Land Development Bank] [Substituted for the words 'Land Mortgage Bank' by Gujarat 24 of 1964] :Provided that, before any such payments are made-(a)the unsecured dues owned by the mortgagor to the [State Land Development Bank] [Substituted for the words 'State Land Mortgage Bank' by Gujarat 24 of 1964] or [Primary Land Development Bank] [Substituted for the words 'Primary Land Mortgage Bank' by Gujarat 24 of 1964] may be adjusted, and(b)the unsecured dues owned by any members or past member of either of the above mentioned banks 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.
