Section 87 in Karnataka Co-Operative Societies Act, 1959
87. Right of [Agriculture and Rural Development Bank] [Substituted by Act 5 of 1984 w.e.f. 09.01.1984.] to pay prior debts of mortgagor.
(1)Where a mortgage is executed in favour of an [Agriculture and Rural Development Bank] [Substituted by Act 5 of 1984 w.e.f. 09.01.1984.] for payment of prior debts of the mortgagor, the Bank may, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882, (Central Act IV of 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 [Agriculture and Rural Development Bank] [Substituted by Act 5 of 1984 w.e.f. 09.01.1984.] towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.(3)For purposes of determining the particulars of prior debts referred to in sub-section (1), any officer of the [State Agriculture and Rural Development Bank] [Substituted by Act 5 of 1984 w.e.f. 09.01.1984.] or of the [Agriculture and Rural Development Bank] [Substituted by Act 5 of 1984 w.e.f. 09.01.1984.], authorised in this behalf by the State Government by notification in the official Gazette, may, subject to such restrictions, limitations and conditions as may be prescribed, by order in writing require any person to whom any such prior debt may be due, to furnish any information or any document relating to such debt, and thereupon such person shall furnish the information or document so required.
