Section 60(2) in The Madhya Bharat Agricultural Debtor's Relief Act, 1956
(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.
