(1) Where a mortgage is executed in favour of 1 [the Central Mortagage Bank or] a Mortgage Bank for payment of prior debts of the mortgagor, the Bank may, notwithstanding the provisions of Sections 75 and 76 of the Transfer of Property Act, 1882 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 Mortgage 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 is due shall be bound to receive payment of the amount offered by the 2 [the Central Mortagage Bank or] Mortgage Bank towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him Act VI of
1882.
Registration of documents executed on behalf of a Mortgage Bank or of the Central Mortgage Bank.