Section 35 in Telangana Jagirdars Debt Settlement Act, 1952
35. Debts payable by debtors to be scaled down.
(1)Notwithstanding any law, custom, contract, award or decree of a Court to the contrary the amounts found due under section 28 from a debtor shall be further scaled down in the manner hereinafter provided.(2)If all the debts found due by a debtor after taking accounts under section 28 are unsecured, such debt shall be further scaled down pro rata to the paying capacity of the debtor.(3)If all the debts found due by a debtor after taking accounts under section 28 are unsecured, and the total amount of such debts is more than sixty per cent of the value of the property belonging to the debtor, such debts shall be further scaled down pro rata to the paying capacity of the debtor.(4)If the debts found due by a debtor after taking accounts under section 28 are both secured and unsecured, and if the total amount of the secured debts is more than sixty per cent of the value of the property on which such debts are secured, the secured debts shall be further scaled down pro rata to sixty per cent of the value of the property on which debts are secured and the unsecured debts shall be further scaled down pro rata to sixty per cent of the value of the property belonging to the debtor over which no debts are secured.
