(1) If any instalment payable under a mortgage, hypothecation deed, loan bond, surety bond or other instrument executed in favour of the 10[Co-operative Agriculture and Rural Multipurpose Development Bank], or any part of such instalment, has remained unpaid for more than one month from the date on which it fell due, the bank shall, in addition to any other remedy available to the bank, apply to the Registrar for recovery of such instalments or part thereof by distraint and sale of the produce of the mortgaged or otherwise encumbered land and properties of and on such land including the standing crops thereon or the movable property encumbered under hypothecation deed or loan bond. The instalments due or any part thereof shall also be recoverable by distraint and sale of the new property created by the debtor by converting the original movable property for which the loan was granted by the bank.
(2) On receipt of such application, the Registrar shall, notwithstanding anything contained in the Transfer of Property Act, 1882 (IV of 1882), take action in the manner prescribed for the purpose of distraining and selling of the produce or the properties referred to in sub-section (1) :
Provided that, no distraint shall be made after the expiry of twelve months from the date on which the instalment fell due].