(1) Out of the proceeds of any sale of goods under subsection (1) of section 56C|or the price payable therefor under subsection (4) of that section, the railway administration may retain a sum equal to the rates or charges due in respect of the goods and the expenses incurred in respect of the goods and the auction thereof and render the surplus, if any, to the person entitled thereto.
(2) Notwithstanding anything contained in sub-section (1), the railway administration may recover by suit any such rate or charge or expenses referred to therein or balance thereof.
(3) Any goods sold under sub-section (1) of section 56C or transferred in compliance with directions issued under sub-section
(2) of that section shall vest in the buyer or the transferee free from all encumbrances but subject to a priority being given for the sum which may be retained by a railway administration under subsection (1), the person in whose favour such encumbrance subsists may have a claim in respect of such encumbrance against the surplus, if any, referred to in that sub-section.
Price to be paid to person entitled after deducting dues.
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