Section 33 in The Hyderabad Agricultural Debtors Relief Act, 1956
33. Court to prepare scheme for adjustment of debts through Land Mortgage Bank.
(1)Where the amount of debts of the debtor as scaled down under section 31 by it exceeds half the value of the debtor's immovable property as determined by it, the Court shall intimate to the creditors the amount of the said debts of the debtor and the said value of the debtor's immovable property and call upon them to state in writing within a specified period not exceeding one month whether they agree to the further scaling down of the said debts so as to reduce them to a sum not exceeding half the said value of the immovable property of the debtor. If a majority in number and three-fourth in value of all the creditors agree to the further scaling down of the debts, the Court shall make an order directing the debtor to pay the amount of such debts so agreed upon within a period of three months from the date of the order.(2)Unless the debtor pays the amount of such debts within a period of three months from the date of the order or such extended period not exceeding three months as the Court may allow and produces the creditor's receipt therefor, the Court shall prepare a scheme embodying the terms of an award to be passed under this section for adjustment of the debts and shall send the scheme to the Primary Land Mortgage Society situated in the local area and if there is no such Primary Land Mortgage Society in that local area, to the Hyderabad Central Co-operative Land Mortgage Bank registered or deemed to be registered under the Hyderabad Co-operative Societies Act, 1952, for acceptance within a period of two months from the date of receipt by it of the scheme. If the Primary Land Mortgage Society or the Hyderabad Central Co-operative Land Mortgage Bank, as the case may be, agrees to accept the scheme, or does not inform the Court within the period of the said two months that it does not agree to accept the scheme, the Court shall make an award in the prescribed form directing that the society or bank, as the case may be, shall pay the creditors in cash the debts as finally scaled down or if the creditors so desire, in bonds issued by the Hyderabad Central Co-operative Land Mortgage Bank, such bonds being guaranteed by the Government for such amount in full satisfaction of all the debts due to them from the debtor. The Court shall further direct that such amount shall be charged on all the immovable property of the debtor.(3)The bank or society shall be entitled to recover the amount due to it from the debtor in such annual instalments as may be fixed by the Court having regard to the circumstances of the debtor and the by-laws of the bank or society and the amount of principal shall carry and be recoverable together with interest at such rate not exceeding 6 per cent. per annum as the Government may notify in this behalf in the Jarida from time to time.(4)All sums due under an award made in favour of the bank or society under this section shall without prejudice to any other modes of recovery allowable by law be recoverable arrears of land revenue :Provided that, any application for recovery of such sums as arrears of land revenue shall be made to the Collector and shall be accompanied by a certificate signed by the Court.
