14. Right of 1[Gram Vikas Bank] to pay prior debts of mortgagor. - (1) Where a mortgage is executed in favour of a 1[Gram Vikas Bank] for payment of prior debts of the mortgagor, the bank may notwithstanding anything contained in the Transfer of Property Act, 1882, or any other law for the time being in force, by notice in writing, require any person to whom any such debt or part thereof is due, to receive from the bank at its registered office such amount without such period as may be specified in the notice.
(2) Where any such person refuses to receive such notice or fails or refuses to receive 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 is due shall be bound to receive payment of the amount offered by the 1[Gram Vikas Bank] towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.
(2) Where any such person refuses to receive such notice or fails or refuses to receive 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 is due shall be bound to receive payment of the amount offered by the 1[Gram Vikas Bank] towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.
Source footnotes
1. Subs. by U.P. Act No. 19 of 1994आगे पढ़ें / Continue reading
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Section 1 · Short title, extent and commencementSection 2 · DefinitionsSection 3 · Number of Gram Vikas BanksSection 4 · Appointment of Trustee and his powers and functionsSection 5 · Trustee to be a Corporation SoleSection 6 · Issue of debentures by the BoardSection 7 · Vesting of property in Trustee and Debenture -holders charge on the assetsSection 8 · Guarantee by State Government of Principal and interest of the money to be borrowed by means of debentures or otherwiseIndia Code, Government of India. Text fetched 16 Oct 2026. Source metadata reports last modification: 2024-03-15. Check the linked official text and subsequent notifications when applying a provision.