Section 127. Application for sale and manner of sale.

(1) The Board or any person authorised by it under sub-section (1) of section 126 may apply to the Sale Officer appointed for the purpose under section 135 to sell the mortgaged property or any part thereof and such officer shall after giving notice in writing to all the persons referred to in sub-section (2) of section 126. (2) The Sale Officer shall sell such property by public auction in the place in which the mortgaged property is situated or at the nearest place of public resort, if the Sale Officer is of opinion that auction of the property at such place is in the interest of the owner thereof : 1[Provided that no person who is not a permanent resident of the State shall be eligible to bid or otherwise participate in the auction].