Application by debtor jointly and severally liable.

(1) If the payment of a debt due by a debtor is guranteed by a surety or if a debtor is otherwise jointly and severally liable for any debt along with any other person and if the surety or such other person is not a debtor, the debtor may make an application under section 11 for relief in respect of such debt and the Board may after consideration of the facts and circumstances of the case proceed with the settlement of debts under this Act in so far as such applicant is concerned.

(2) Whenever the debts due by a debtor which are guaranteed by a surety are settled under sub-section (1), the surety shall be discharged from liability in respect of the debts or portion of the debts of such debtor which are extinguished under sub-section (1) of section 22, sub-section (5) of section 30, section 38 or clause (2) of section 39; and the surety shall not be entitled to proceed against the debtor in respect of such debts or portion.