State Act

The Bihar Co-operative Societies Act, 1935

44 Y. Disposal of sale proceeds . – (1) The proceeds of the sale, effected under this Chapter shall be applied of all costs, charges and expenses incurred in connection with the sale or attempted sales, secondly to the payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold and thirdly to the payment of the principal due on account of the mortgage including cast and charges incidental to the recovery. (2) if there remains any residue from the proceeds of sale referred to under subsection (1), the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons than one, to such persons upon their joint receipt or according to their respective interest therein: Provided that, before such payments are made, the unsecured dues owing from the mortgagor to the Land Development Bank may be abjusted.