(1)

Where a mortgage is executed in favour of a [Land Development Bank] [Substituted for the words 'Land Mortgage Bank' by Gujarat 24 of 1964] for payment of prior debts of the mortgagor, the [Land Development Bank] [Substituted for the words 'Land Mortgage Bank' by Gujarat 24 of 1964] shall, notwithstanding anything contained in Transfer of Property Act, 1882 (IV of 1882), by notice in writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank as its registered office, within such period as may be specified in the notice.

(2)

Where any such person fails to accept such notice or, to receive such payments, such debts or part thereof, as the case may be, shall cease to carry interest from the expiry 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 [Land Development Bank] [Substituted for the words 'Land Mortgage Bank' by Gujarat 24 of 1964] towards the debt, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by him.