Powers to pass just and equitable orders in cases where creditor does not agree to amicable settlement.

The Jammu and Kashmir Debtors Relief Act, 1976

Finance197637 sections

Read full ActSections

Statutory text

(1) Where, during the hearing of any application made under section 4, any creditor refuses to agree to an amicable settlement, the Board may, if it is of opinion that the debtor has made such creditor a fair offer which the creditor ought reasonably to accept, proceed to record such evidence as the parties may produce and pass such order as may appear to it just and equitable : Provided that if a debtor has paid back to his creditor in cash or kind or both an amount equal to the principal sum and half of the principal sum, the Board shall dismiss all claims shown outstanding against the debtor and all such outstanding shall thereafter be deemed to have been fully discharged : Provided further that if the Board finds after due enquiry, that such debtor has paid more than the principal and one-half of the principal, the Board shall pass a decree for the excess amount in favour of the debtor.
(2) Any party aggrieved by a final order of a Board under this Act may prefer an appeal to the Appllate Authority to be appointed by the Government having jurisdiction in the area, against such order within sixty days from the date of the order and there shall be no further appeal : Provided that in respect of the cases arising in any area specified in the proviso to section 4, the period of limitation shall be twice such period.
(3) An order passed under sub-section (1) or sub-section (2) shall be executable as if it were a decree of a civil court having jurisdiction in the area of the jurisdiction of the Board.
(4) A just and equitable order under this section shall include an order by which a debtor is required to make payment by instalments keeping in view his paying capacity.
(5) Whenever it is made to appear to the Government that a case decided finally by a Board or an Appellate Authority involves a substantial question of law or a question of public interest it may call for the record of the case and pass such order thereon as it thinks fit : Provided that the Government shall not pass an order under this subsection against any person without giving him an opportunity of being heard; Provided further that the provisions of section 18 shall apply to an order passed by the Government under this sub-section.

Study data processing for this section.

PDF: pending for this language.