Section 12 in The Assam Debt Conciliation Act, 1936
12. Agreement of amicable settlement, its registration and effect.
(1)If the creditors to whom not less than forty per cent of the total amount of the debtor's subsisting debts are owing, come to an amicable settlement with the debtor, such settlement shall forthwith be reduced to writing in the form of an agreement, recording the immovable properties of the debtor with particulars of any mortgage, lien or charge subsisting thereon and the amounts payable to such creditors and the manner in which and the times at which they are to be paid. Such agreement shall be read out and explained to the parties concerned, and shall be signed or otherwise authenticated by the Board and the parties:Provided, that, when a Co-operative Society is one of such creditors, no settlement, in so far as it affects the debts owing to such society, shall be valid without the previous approval in writing of the Registrar of Co-operative Societies.(2)An agreement thus made shall, within fourteen days from the date of its making, be registered under the Indian Registration Act, 1908, by the Chairman of the Board, in such manner as may be prescribed.(3)For the purpose of registration of an agreement under sub-section (2), the Chairman of the Board shall be deemed to be an officer of Government empowered to execute such an agreement within the meaning of Section 88 of the Indian Registration Act, 1908.(4)Existing mortgage, lien or charge to subsist. - Where an agreement registered under sub-section (2) relates to a debt which is secured by a mortgage, lien or charge on any immovable property of the debtor, such mortgage, lien or charge shall subsist to the extent of the amount payable to the creditor in respect of such debt in accordance with the terms of the agreement until such amount has been recovered or the property has been sold for the satisfaction of such debt.
