Section 13(2) in The Assam Debt Conciliation Act, 1936
(2)Where the Deputy Commissioner has, under sub-section (1), recovered any amount which was payable in accordance with the terms of the agreement, he shall proceed to make payments as follows:(a)he shall, in the first instance, apply the sum realised from the sale of any portion of the immovable property referred to in Section 12 (4) to the payment of any amount payable under the agreement on account of-(i) rent in respect of the property sold; (ii) any debt which is secured by a mortgage, lien or charge on such property in order of priority determined in accordance with the provisions of the Transfer of Property Act, 1882. and, if the said sum is insufficient to meet such payments, the amounts which have remained unpaid shall rank equally with unsecured debt;(b)if there is a surplus after the payments have been made under Clause (a), the Deputy Commissioner 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 well, together with the surplus, be sufficient to meet the payment of such amounts;(c)if the sum of the surplus and sale proceeds referred to in Clause (b) is insufficient to meet the payment of other amounts referred to therein, such other amounts and any other amount payable on account of any unsecured debt for the recovery of which a decree have 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 Deputy Commissioner to the debtor.
