Where a mortgage or charge is created in favour of a cooperative society for payment of prior debts of the members, the society may, notwithstanding the provisions of sections 83 and 84 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 debts or part thereof from the society, within such period as may be specified in the notice. If 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 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 society towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.