Section 98 in Jammu and Kashmir Co-Operative Societies Act, 1989
98. Right of Agriculture and Rural Development Bank to pay prior debts of mortgagor.
(1)Where a mortgage is executed in favour of an Agriculture and Rural Development Bank, for payment of prior debts of the mortgagor, the Bank may, notwithstanding the provisions of section 76 of the Transfer of Property Act, Samvat 1977, by notice in writing require any person to whom any such debt is due, to receive payment of such debt or part thereof from the Bank at its registered office within such period as may be specified in the notice.(2)Where any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice:Provided that where there is a dispute as regards the amount of any such debt the person to whom such debt due shall be bound to receive payment of the amount offered by the Agriculture and Rural Development Bank towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by him.
