Application by debtor or creditor for inquiry and power of debt settlement officer to inquire.

(1) Any debtor or creditor who has any dispute to raise against any of the particulars mentioned in the statement published under sub-section (2) of section 7 may, within the period specified in the notice published under that sub-section make an application in writing to the debt settlement officer having jurisdiction in the area in which the debtor concerned ordinarily resides, stating the grounds of his dispute against the particulars. (2) On receipt of an application under sub-section (1), the debt settlement officer shall serve a notice in such form and in such manner as may be prescribed upon the other party, requiring him to be present before the debt settlement officer for the purpose of being heard in connection with such application on a date specified in the notice and on all subsequent dates to which the hearing of the application may from time to time be adjourned by the debt settlement officer. (3) After having satisfied that the notice under sub-section (2) has been duly served on the other party, the debt settlement officer shall, after calling for such further information or particulars in relation to the debt in question, if necessary, and after making such inquiry and following such procedure, subject to any rules made in this behalf by the State Government, as in his opinion, the circumstances of the case seem to require, pass,— (i) in a case in which he is satisfied that the debtor is a marginal farmer or a rural labourer or is a rural artisan whose income does not exceed rupees 2400 per year, an order discharging the debt completely and grant to the debtor a certificate of discharge from the debt in the prescribed form; and on the grant of such certificate to a debtor in respect of a debt, such debt shall not be recoverable from such debtor; (ii) in a case in which the debtor is a small farmer or is a rural artisan (3) whose income exceeds rupees 2,400, per year, but does not exceed rupees 4,800 per year, an order— (a) discharging the debt completely if any amount equal to or exceeding twice the amount of the principal has already been paid by, or recovered from, such debtor before the appointed day and grant to the debtor a certificate of discharge from the debt in the prescribed form, and on the grant of such certificate to such debtor in respect of a debt, such debt shall not be recoverable from him; (b) determining, in a case not falling under sub-clause (a), the amount of the recognised debt as defined in Explanation 2 to sub-section (/) of section 3, and reducing the debt in accordance with the provisions of sub-clause (ii) of clause (b) of sub-section (1), and sub-section (2), of section 3 and the amount to which such debt is reduced shall there upon be the amount due from the debtor in respect of the debt or debts due from the debtor and the portion of the debt or debts in excess of such amount shall be deemed to have been discharged. (4) If no application under sub-section (/) is received by the debt settlement officer from any debtor or creditor within the period referred to in sub-section (1), the debt settlement officer shall, on the basis of the particulars shown in the statement prepared and published under section 7, and, if necessary, after making such inquiry as he deems fit, pass an order under clause (i) or under clause (ii), of sub-section (3), as the facts and nature of the case may require; and on the passing of such order the consequences mentioned in clause (i), or, as the case may be, clause (ii) of sub-section (3) shall follow. (5) Any order made by a debt settlement officer under this section shall, sub ject to the decision in appeal, if any, under section 13, be final and shall not be called in question in any court.