Claims admitted or disallowed.

39. (1) The Collector shall, after making such inquiry as he deems fit, decide as to which claims notified to him or presented to him under section 36, are to be allowed in whole or in part and which are to be disallowed. On such decision being confirmed by the Court, the Collector shall give written notice of the same to the claimants.

(2) The Collector may, where he has admitted any claim or part thereof, make to the claimant a proposal in writing for the reduction of the claim or for the rate of interest to be paid in future or for both or for the terms of payment. If the claimant accepts such proposal in writing with or without modification, and such written acceptance is attested by the Collector himself or by any Revenue Officer, not below the rank of a Deputy or Assistant Collector, appointed by the Government by a general or special order for the purpose, it shall be binding upon the claimant.

(3) Subject to the provisions of sub-section (2) nothing contained in this section shall preclude any claimant from instituting or continuing any suit in a Civil Court in respect of any claim against a ward or his property, whether such claim is allowed or disallowed by the Court: Provided that where a suit is instituted, no decision made under this section, shall be used as against the defendant: Provided further that where the claimant has failed to notify his claim under section 36, no suit or proceeding in