Section 13 in The (Central Provinces and Berar) Debt Conciliation Act, 1933
13. Recovery of sums due under agreement. - (1) If a debtor defaults in paying any amount due in accordance with the terms of an agreement registered under sub-section (2) of Section 12 such amount shall be recoverable as an arrear of land revenue on the application of the creditor made within ninety days from the date of default.
(2)Where immovable property is liable to be sold for the recovery of any amount, the Revenue Officer ordering the sale may direct the whole or such portion thereof to be sold as may appear to him sufficient to satisfy the amount.(3)The sale of immovable property for the recovery of an amount payable under the terms of an agreement shall be subject to any mortgage, lien, or charge thereon, except where it is for the recovery of an amount secured by a mortgage, lien, or charge within the meaning of Section 12-A, in which case it shall be sold free from that mortgage, line, or charge, as the case may be.(4)Where two or more creditors whose debts are secured by a mortgage, lien, or charge on the same immovable property have applied for the recovery or their amounts under sub-section (1), and where such immovable property is liable to be sold for the recovery of those amounts, the Revenue Officer shall determine the order of priority amongst the creditors in accordance with the provisions of the Transfer of Property Act, 1882 (IV of 1882), and shall order sale of the property for the recovery of the amount of the debt determined to be the first in priority.][13A. Application of sale proceeds in case of sale of immovable property. - Where any immovable property is sold for the recovery of the amount payable under the terms of an agreement to a creditor secured within the meaning of Section 12-A, the sale proceeds shall be applied as follows:(a)(i)in the first instance, to the payment of any instalments that have fallen due under the agreement to such secured credatediro inclusive of costs of the proceedings;(ii)secondly to the payment of the remaining amount payable to such creditor;(b)if there is a surplus after the payments have been made under clause (a), it shall be applied in the same manner to the payment of the amounts of other secured subsequent creditors in order of their priority determined in accordance with the provisions of the Transfer of Property Act, 1882 (IV of 1882);(c)any further surplus remaining after payments have been made to secured creditors under clause (b) shall be distributed rateably amongst the unsecured creditors in payment of the amounts payable under the terms of the agreement as follows;(i)in the first instance towards the payment of instalments that have fallen due;(ii)secondly towards the payment of the remaining amounts;(d)any surplus yet remaining after the payments have been made under clause (c) shall be paid to the debtor.
