(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (Central Act 4 of 1882), the Land Development Bank or any person authorised by it in this behalf shall, in case of default of payment of the mortgage money, or any part thereof, have power, in addition to any other remedy available to the Bank, to bring the mortgaged property to sale by public auction in the village in which the mortgaged property is situated or at the nearest place of public resort without the intervention of the court:
Provided that no action shall be taken under this sub-section and no such power shall be exercised, unless and until -
(a) the Land Development Bank has been previously authorised by the Collector or the Registrar, to exercise the power conferred under this sub-section, after hearing the objections, if any, of the mortgager or mortgagers;
(b) notice in writing requiring payment of such mortgage money or part thereof has been served upon -
(i) the mortgager or each of the mortgagers;
(ii) any person who has any interest in or charge upon the property mortgaged, or in or upon the right to redeem the same so far as is known to the bank;
(iii) any surety for the payment of the mortgaged debt or any part thereof; and
(iv) any creditor of the mortgager who has, in a suit for administration of his estate, obtained a decree for sale of mortgaged property; and
(c) default has been made in payment of such mortgage money or part thereof for three months after the service of notice.
(2) If the Land Development Bank fails to take action against a defaulter under section 85 or section 88 or under this section, the State Land Development Bank may direct the Land Development Bank to take appropriate action, and where no action is taken either by the State Land Development Bank or the Land Development Bank, the Trustee may take such action. If such action is taken by the Trustee, the provisions of this Chapter and of any rules shall apply in respect thereto, as if all references to the Land Development Bank in the said provision were references to the trustees.
(3) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for a Land Development Bank or the State Land Development Bank to purchase any mortgaged property sold under this Chapter.