The correct answer is (c).
Section 82 of the T.P. Act provides that when there is a conflict between marshalling and contribution, marshalling shall prevail. This means that if a creditor has a right to both marshalling and contribution, they must first exercise their right to marshalling before they can exercise their right to contribution.
Marshalling is the process of applying the proceeds of a sale of property to the debts secured by that property in the order of priority in which those debts are ranked. Contribution is the process of one creditor seeking to recover from another creditor a share of the amount that the first creditor has paid to a common debtor.
The reason why marshalling is given priority over contribution is that it is fairer to the debtor. If a creditor is allowed to first seek contribution from another creditor, the debtor may end up having to pay twice for the same debt. This is because the first creditor will have already been paid by the debtor, and the second creditor will then be able to recover their share of the debt from the debtor.
However, there are some exceptions to the rule that marshalling takes priority over contribution. For example, if a creditor has a security interest in property that is not subject to marshalling, they will be able to seek contribution from another creditor even if the debtor has already paid the first creditor.
In conclusion, Section 82 of the T.P. Act provides that when there is a conflict between marshalling and contribution, marshalling shall prevail. This means that if a creditor has a right to both marshalling and contribution, they must first exercise their right to marshalling before they can exercise their right to contribution. The reason why marshalling is given priority over contribution is that it is fairer to the debtor. However, there are some exceptions to this rule.