Section 114 in West Bengal Co-operative Societies Act, 2006
114. Payment of prior debts of mortgagor.
(1)When any property. is mortgaged to a Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society for payment of a prior debt or part thereof of a mortgagor, the Co-operative agriculture and rural development bank, financing bank or the primary agricultural credit Co-operative society shall, notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882 (4 of 1882), by serving a notice in writing in the prescribed manner require any person to whom such debt is due to receive payment of such debt or part thereof from it within such period as may be specified in the notice.(2)The person on whom a notice is served under sub-section (1) shall be bound to receive payment of the amount tendered by the Co-operative agriculture and rural development bank, financing bank or the primary agricultural credit Co-operative society. If there is a disagreement between the mortgagor and such person as regards the amount of the debt, the receipt of the sum tendered by the Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society shall not prejudice the right of such person to recover the balance amount of the debt claimed by him.(3)If any person does not accept the notice served under sub-section (1) or fails to receive payment of the debt or part thereof within the period specified in the notice, the debt or part thereof shall cease to carry interest from the expiry of such period.
