38. Application by debtor for declaration of satisfaction of debt.
(1)a debtor may after depositing in Court the amount which he admits to be due from him on account of a loan, file an application against a money-lender for a declaration that the debt has been satisfied and, if the Court is satisfied on hearing the parties on such an application that the debt, including the amount of principal and legally recoverable interest has been satisfied, it shall pass a decree declaring that the debt has been satisfied.(2)If on an application made under sub-section (1) the Court finds that any amount is still due from the debtor to the money lender, it shall pass a decree directing the debtor to pay such amount to the money-lender or deposit the same in court within such period as it may deem fit and declaring the debtor free from all liabilities on such payment or deposit being made.(3)The Court shall forthwith grant a receipt for the deposit made under subsection (2) under the seal of the Court and given notice of it to money-lender.(4)The money-lender may, at any time within three years of the date of receipt of the notice of deposit, make an application to the Court praying for payment to him of the amount of deposit and along with such application he shall deposit the documents, if any, on which the loan is based.(5)If no application is made under sub-section (4) within the period mentioned in the said sub-section, the amount deposited shall be disposed of in the prescribed manner.(6)Upon receipt of an application under sub-section (4) the Court may order such amount to be paid to the application on such term and subject to such condition as may be specified in the order.(7)The Court shall return the documents deposited by the money-lender under sub-section (4) to the debtor after making endorsement of satisfaction of the loan thereon.
