Railways Act, 1989
91. Price to he paid to person entitled after deducting
dues.
(1) Out of the proceeds of any sale of goods under sub-section (1)
of section 90 or the price payable therefor under sub-section (4) of that
section, the railway administration may retain a sum equal to the freight and
other charges due in respect of such 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 freight or charge or
expenses referred to therein or balance thereof.
(3) Any goods sold under sub-section (1) of section 90 or
transferred in compliance with the 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 sub-section (1), the person in whose
favor such encumbrance subsists may have a claim in respect of such encumbrance
against the surplus, if any, referred to in that sub-section