Court to prepare scheme for adjustment of debts through provincial Land Mortgage Bank.

§33

Summary

(1) Where the amount of debts of the debtor as scaled down under section 31 by it exceeds half the value of the debtors immovable property as determined by it, the Court shall intimate to the creditors the amount of the said debts of the debtor and the said value of the debtors immovable property and call upon them to state in writing within a specified, period not exceeding one month whether they agree to the further scaling down of the said debts so as to reduce them to a sum not exceeding half the said value of the immovable property of the debtor. If 1[a majority in number and three-fourth in value of all the creditors] agree to the further scaling down of the debts, the Court shall make an order directing the debtor to pay the amount of such debts so agreed upon within a period of one month from the date of the order. 2[(2) Unless the debtor pays the amount of such debts within a period of one month from the date of the order or such extended period not exceeding one month as the Court may allow and produces the creditor's receipt therefor, the Court shall prepare a scheme embodying the terms of an award to be parsed under this section for adjustment of the debts and shall send the scheme to the Primary Land Mortgage Bank situated in the local areas and if there is no such Primary Land Mortgage Bank in that local area, to the Bombay Provincial Co-operative Land Mortgage Bank, for acceptance within a period of two months from the date of receipt by it of the scheme. If the Primary Land Mortgage Bank or the Bombay Provincial Co-operative Land Mortgage Bank, as the case may be, agrees to accept the scheme, or does not inform the Court within the period of the said two months that it does not agree to accept the scheme, the Court shall make an award in the prescribed form directing that the Land Mortgage Bank concerned shall pay the creditors in cash the debt as finally scaled down or if the creditors so desire, in bonds issued by the Bombay Provincial Co-operative Land Mortgage Bank, such bonds being guaranteed by the State Government, for such amount in full satisfaction of all the debts due to them from the debtor. The Court shall further direct that such amount shall be charged on all the immovable property of the debtor.] 3[(2A) (a) Where any award made under sub-section (1) of section 55 of the repealed Act or under sub-section (2) of this section has either before or after the Bombay Agricultural Debtors' Relief (Amendment) Act, 1948 (Bom. LXX of 1948), has come into force been wrongly forwarded for payment to the creditors of the debt as finally scaled down to any Primary Land Mortgage Bank which under its by-laws was not competent to make payment to the creditors, it shall be lawful to the Court notwithstanding anything contained in this Act, on application made by the creditor concerned and after holding such inquiry as it deems fit, to direct that the said award be forwarded to the Primary Land Mortgage Bank for the local area concerned competent to make the payment or to the Bombay Provincial Co-operative Land Mortgage Bank, as the case may be, for making payment in accordance with this section. (b) The award directed to be forwarded under clause (a) shall not be deemed to have been wrongly forwarded only on the ground that it was originally forwarded to a Primary Land Mortgage Bank not competent to make the payment, and shall, notwithstanding anything contained in this Act, be deemed to have been duly forwarded under sub-section (2) and shall be executed in accordance with the provisions of this Act.] 4[(3) The Bank shall be entitled to recover the amount due to it from the debtor in such annual instalments as may be fixed by the Court. The amount of principal shall carry and be recoverable together with interest at such rate not exceeding 5[7 13/16 per cent.] per annum as the 6[State] Government may notify in this behalf in the Official Gazette, from time to time]. (4) All sums due under an award made in favour of the bank under this section shall be recoverable as arrears of land revenue: 7[Provided that, any application for the recovery of such sums shall be made to the Collector and shall be accompanied by a certificate signed by the Court].

(1) Where the amount of debts of the debtor as scaled down under section 31 by it exceeds half the value of the debtors immovable property as determined by it, the Court shall intimate to the creditors the amount of the said debts of the debtor and the said value of the debtors immovable property and call upon them to state in writing within a specified, period not exceeding one month whether they agree to the further scaling down of the said debts so as to reduce them to a sum not exceeding half the said value of the immovable property of the debtor. If 1[a majority in number and three-fourth in value of all the creditors] agree to the further scaling down of the debts, the Court shall make an order directing the debtor to pay the amount of such debts so agreed upon within a period of one month from the date of the order. 2[(2) Unless the debtor pays the amount of such debts within a period of one month from the date of the order or such extended period not exceeding one month as the Court may allow and produces the creditor's receipt therefor, the Court shall prepare a scheme embodying the terms of an award to be parsed under this section for adjustment of the debts and shall send the scheme to the Primary Land Mortgage Bank situated in the local areas and if there is no such Primary Land Mortgage Bank in that local area, to the Bombay Provincial Co-operative Land Mortgage Bank, for acceptance within a period of two months from the date of receipt by it of the scheme. If the Primary Land Mortgage Bank or the Bombay Provincial Co-operative Land Mortgage Bank, as the case may be, agrees to accept the scheme, or does not inform the Court within the period of the said two months that it does not agree to accept the scheme, the Court shall make an award in the prescribed form directing that the Land Mortgage Bank concerned shall pay the creditors in cash the debt as finally scaled down or if the creditors so desire, in bonds issued by the Bombay Provincial Co-operative Land Mortgage Bank, such bonds being guaranteed by the State Government, for such amount in full satisfaction of all the debts due to them from the debtor. The Court shall further direct that such amount shall be charged on all the immovable property of the debtor.] 3[(2A) (a) Where any award made under sub-section (1) of section 55 of the repealed Act or under sub-section (2) of this section has either before or after the Bombay Agricultural Debtors' Relief (Amendment) Act, 1948 (Bom. LXX of 1948), has come into force been wrongly forwarded for payment to the creditors of the debt as finally scaled down to any Primary Land Mortgage Bank which under its by-laws was not competent to make payment to the creditors, it shall be lawful to the Court notwithstanding anything contained in this Act, on application made by the creditor concerned and after holding such inquiry as it deems fit, to direct that the said award be forwarded to the Primary Land Mortgage Bank for the local area concerned competent to make the payment or to the Bombay Provincial Co-operative Land Mortgage Bank, as the case may be, for making payment in accordance with this section. (b) The award directed to be forwarded under clause (a) shall not be deemed to have been wrongly forwarded only on the ground that it was originally forwarded to a Primary Land Mortgage Bank not competent to make the payment, and shall, notwithstanding anything contained in this Act, be deemed to have been duly forwarded under sub-section (2) and shall be executed in accordance with the provisions of this Act.] 4[(3) The Bank shall be entitled to recover the amount due to it from the debtor in such annual instalments as may be fixed by the Court. The amount of principal shall carry and be recoverable together with interest at such rate not exceeding 5[7 13/16 per cent.] per annum as the 6[State] Government may notify in this behalf in the Official Gazette, from time to time]. (4) All sums due under an award made in favour of the bank under this section shall be recoverable as arrears of land revenue: 7[Provided that, any application for the recovery of such sums shall be made to the Collector and shall be accompanied by a certificate signed by the Court].

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