State Act

The Maharashtra Co-operative Societies Act, 1960

135. Disposal of sale proceeds.— The proceeds of every sale effected under section 133 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 1[or encumberance] in consequences whereof the 2[mortgaged or otherwise encumbered property] was sold, and thirdly in payment of the principal due on account of the mortgage 3[or encumberance] including costs and charges incidental to the recovery. If there remain any residue from the proceeds of sale, the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons than one, then to such persons upon their joint receipt or according to their respective interest therein, as may be determined by 4[Co-operative Agriculture and Rural Multipurpose Development Bank]: Provided that, before any such payments are made the unsecured dues owing— (a) from the mortgagor 5[or the debtor] to the 6[Co-operative Agriculture and Rural Multipurpose Development Bank] may be adjusted, and (b) from any member or past member or whom the mortgagor 7[or the debtor] is indebted may also be adjusted under the written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.