Settlement of debts
19.(1) Subject to rules made under this Act-
(a) when any creditor agrees in respect of any debt owing to him to an amicable settlement with the debtor, the Board shall embody such settlement in writing; or
(b) when creditors to whom there is owing not less than forty per cent. of the total debt, agree to an amicable settlement with the debtor, the Board, if it is so empowered under section 7 and if it considers that an offer made by the debtor for the settlement of any debt not included in the amicable settlement is a fair offer which the creditor concerned ought reasonably to accept, may pass an order that the debt to which the offer relates shall be settled in accordance with such offer:
Provided that for the purposes of this clause an offer shall not be considered by the Board to be a fair offer-
(i) if its terms are less favourable than the terms of the amicable settlement relating to a debt of the same description, or
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(c) when in respect of a debt referred to in sub-section (5) of section 18, the Board, if so empowered under section 7, considers that the debtor has made an offer for the settlement of the debt which the creditor ought reasonably to accept, it may order that the debt be settled in accordance with such offer, and may pass a further order directing the creditor to restore to the debtor by a specified date any immovable property of the debtor which is in his possession as security for or in lieu of payment of any portion of the principal of such debt or any portion of the interest thereon. Such date shall be fixed in consideration of the profits derived and the estimated profits which may be derived by the creditor from such property provided that in no case shall the date be fixed so as to allow the creditor to enjoy possession of the land of a raiyat or under-raiyat for a period exceeding fifteen years from the commencement of such possession.
(2) The terms of any settlement of debts under sub-section (1) shall be embodied in an award to be made by the Board
Explanation.-The words "total debt" mean the sum total of all debts which have been determined under section 18 or regarding the amount of which there is no doubt or dispute.