Section 108(1) in Rajasthan Co-operative Societies Act, 1965
(1)The proceeds of every sale effected under section 106 and confirmed under the preceding section, shall be applied first in payment of all costs, charges, and expenses incurred in connection with the sale or attempted sales, secondly in payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold and thirdly in payment of the principal due on account of the mortgage including costs and charges incidental to the recovery.