Award.

§32

Summary

(1) After determining the amount of debts scaled down in the manner provided in section 31 the Court shall, save as otherwise provided in section 33, make an award. (2) The award shall be in the prescribed form and shall be drawn up subject to the following provisions :- (i) the amount of the secured debts scaled down shall be charged on the properties on which they may have been secured; (ii) subject to clause (i) the amount of unsecured debts shall be charged on all the properties of the debtor 1[unless all the creditors declare in writing that the unsecured debts due may not be charged on any of the properties of the debtor]; (iii) in fixing the priority in which debts shall be paid the following order shall be followed :- (a) debts due to Government, which are charged on the immovable property belonging to the debtor or which are recoverable as the current year’s land revenue. (b) debts due to local authorities, which are charged on the immovable property belonging to the debtor or which are recoverable as the current year's dues. (c) loans given by resource societies or by persons authorized to advance loans under section 78 of the repealed Act or section 54 of this Act for the financing of crops under the repealed Act or for seasonal finance under this Act after the 30th January 1940 and other loans given for financing crops after the 1st January 1939 and before the 30th January 1940. (d) secured debts in order of priority, (e) debts due to Government, local authorities and other bodies including co-operative societies, and recoverable as arrears of land revenue, (f) other debts due to co-operative societies, 2[(ff) debts due to merged State banks,] (g) unsecured debts: Provided that, in the case of unsecured debts they shall be paid pro rata; (iv) the total annual instalments shall not exceed twelve: Provided that, in fixing the amount of instalments in which the debts shall be paid the Court shall ascertain the net annual income of the debtor and the annual instalments payable by the debtor shall not exceed his net annual income. Explanation.- For the purposes of this clause, the net annual income of the debtor shall mean the balance of his annual income after deducting (i) such sum as may be considered necessary for the payment of the liability, if any, imposed on the debtor under a decree or order for maintenance passed by a competent Court, (ii) such sum as may be considered necessary for the maintenance of the debtor and his dependants, and (iii) the sum required by the debtor to pay the assessment and taxes in respect of the current year to Government and to local authorities and to pay off loans borrowed for the purpose of the financing of crops under the repealed Act or seasonal finance under this Act; (v) the Court may pass an order for the delivery of possession of any property notwithstanding any law or contract to the contrary; (vi) the rate of interest shall not exceed 6 per cent. per annum or such less rate as may be notified in this behalf by the 3[State] Government or the rate agreed upon between the parties when the debt was originally incurred or the rate allowed by the decree in respect of such debt, whichever is the lowest.

(1) After determining the amount of debts scaled down in the manner provided in section 31 the Court shall, save as otherwise provided in section 33, make an award. (2) The award shall be in the prescribed form and shall be drawn up subject to the following provisions :- (i) the amount of the secured debts scaled down shall be charged on the properties on which they may have been secured; (ii) subject to clause (i) the amount of unsecured debts shall be charged on all the properties of the debtor 1[unless all the creditors declare in writing that the unsecured debts due may not be charged on any of the properties of the debtor]; (iii) in fixing the priority in which debts shall be paid the following order shall be followed :- (a) debts due to Government, which are charged on the immovable property belonging to the debtor or which are recoverable as the current year’s land revenue. (b) debts due to local authorities, which are charged on the immovable property belonging to the debtor or which are recoverable as the current year's dues. (c) loans given by resource societies or by persons authorized to advance loans under section 78 of the repealed Act or section 54 of this Act for the financing of crops under the repealed Act or for seasonal finance under this Act after the 30th January 1940 and other loans given for financing crops after the 1st January 1939 and before the 30th January 1940. (d) secured debts in order of priority, (e) debts due to Government, local authorities and other bodies including co-operative societies, and recoverable as arrears of land revenue, (f) other debts due to co-operative societies, 2[(ff) debts due to merged State banks,] (g) unsecured debts: Provided that, in the case of unsecured debts they shall be paid pro rata; (iv) the total annual instalments shall not exceed twelve: Provided that, in fixing the amount of instalments in which the debts shall be paid the Court shall ascertain the net annual income of the debtor and the annual instalments payable by the debtor shall not exceed his net annual income. Explanation.- For the purposes of this clause, the net annual income of the debtor shall mean the balance of his annual income after deducting (i) such sum as may be considered necessary for the payment of the liability, if any, imposed on the debtor under a decree or order for maintenance passed by a competent Court, (ii) such sum as may be considered necessary for the maintenance of the debtor and his dependants, and (iii) the sum required by the debtor to pay the assessment and taxes in respect of the current year to Government and to local authorities and to pay off loans borrowed for the purpose of the financing of crops under the repealed Act or seasonal finance under this Act; (v) the Court may pass an order for the delivery of possession of any property notwithstanding any law or contract to the contrary; (vi) the rate of interest shall not exceed 6 per cent. per annum or such less rate as may be notified in this behalf by the 3[State] Government or the rate agreed upon between the parties when the debt was originally incurred or the rate allowed by the decree in respect of such debt, whichever is the lowest.

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