(1) Where a mortgage is executes in favour of a [Gram Vikas Bank] 5 for payment of prior debts of the mortgagor, the bank, may, notwithstanding anything contained in the Transfer of Property Act, 1882, or any other law for the time being in force, by notice in writing, require any person to whom any such debt or part thereof is due, to receive from the bank at its registered office such amount within such period as may be specified in the notice.
(2) Where any such person refuses to receive such notice or fails or refuses to receive 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 [Gram Vikas Bank] 5 towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him.
Distraint when to be made