Section 60 in The Madhya Bharat Agricultural Debtor's Relief Act, 1956
60. Recovery of sums due under agreement.
(1)If a debtor makes default in paying any amount due in accordance with the terms of an agreement registered under sub-Section (2) of Section 18, such amount shall be recoverable, on the application of the creditor made within ninety days from the date of default as if it were an arrear of land revenue.(2)Where the Collector has under sub-Section (1) recovered any amount which was payable in accordance with the terms of agreement, he shall proceed to make payment as follows-(a)he shall, in the first instance, apply the sum realised from the sale of any portion of the movable property to the payment of any amount payable under the agreement on account of a debt which is secured by mortgage, lien or charge on such property in order of priority determined in accordance with the provisions of the Transfer of Property Act, 1882 (IV of 1882) and, if the said sum is insufficient to meet such payments the amount which have remained unpaid shall rank equally with unsecured debts;(b)if there is a surplus after the payments have been made under clause (a) the Collector shall apply to the payment of any other amounts payable under the agreement the sum of the surplus and of the proceeds realised from the sale of such portion of any other property of the debtor as will, together with the surplus, be sufficient to meet the payment of such accounts;(c)if the sum of the surplus and sale proceeds referred to in clause (b) are insufficient to meet the payment of other amount referred to therein such other amount and any amount payable an account of any unsecured debt for the recovery of which a decree has been passed by a Civil Court, and of which details are given in the agreement shall rank equally between themselves for the purposes of payment.(d)Any further surplus remaining after the payments have been made under clauses (a), (b) and (c) shall be paid by the Collector to the debtor.(3)Where the Collector fails, under sub-section (1) to recover as an arrear of land revenue any part of the amount referred to therein he shall certify that it is irrecoverable and thereupon the agreement shall cease to subsist.(4)Where an agreement ceases to subsist any amount which was payable under such agreement but has not been paid shall be recoverable as if a decree of a Civil Court had then been passed for its payment.
