Section 13 in The Assam Debt Conciliation Act, 1936
13. Recovery of sums due under agreement and distribution thereof.
(1)If a debtor defaults in paying any amount due in accordance with the terms of an agreement registered under sub-section (2) of Section 12, such amount shall be recoverable under the procedure laid down in Section 69 of the Assam Land and Revenue Regulation, 1886 on application to the Deputy Commissioner made by the creditor within ninety days from the date of default.(2)Where the Deputy Commissioner has, under sub-section (1), recovered any amount which was payable in accordance with the terms of the agreement, he shall proceed to make payments as follows:(a)he shall, in the first instance, apply the sum realised from the sale of any portion of the immovable property referred to in Section 12 (4) to the payment of any amount payable under the agreement on account of-(i) rent in respect of the property sold; (ii) any debt which is secured by a mortgage, lien or charge on such property in order of priority determined in accordance with the provisions of the Transfer of Property Act, 1882. and, if the said sum is insufficient to meet such payments, the amounts which have remained unpaid shall rank equally with unsecured debt;(b)if there is a surplus after the payments have been made under Clause (a), the Deputy Commissioner shall apply to the payment of any other amounts payable under the agreement the sum of the surplus and of the proceeds realised from the sale of such portion of any other property of the debtor as well, together with the surplus, be sufficient to meet the payment of such amounts;(c)if the sum of the surplus and sale proceeds referred to in Clause (b) is insufficient to meet the payment of other amounts referred to therein, such other amounts and any other amount payable on account of any unsecured debt for the recovery of which a decree have been passed by a Civil Court and of which details are given in the agreement shall rank equally between themselves for the purposes of payment;(d)any further surplus remaining after the payments have been made under Clauses (a), (b) and (c) shall be paid by the Deputy Commissioner to the debtor.(3)Where the Deputy Commissioner fails to recover under provisions of sub-section (1) any part of such amount, he shall certify that it is irrecoverable and thereupon the agreement shall cease to subsist.(4)When the Deputy Commissioner certifies under sub-section (3) that any debt is irrecoverable such certificate shall be deemed to be a decree and the creditor to be the decree holder within the meaning of the Code of Civil Procedure, 1908, and the nearest Civil Court by which any decree for like amount could be executed shall, for the purposes of the said Code, be deemed to be the Court which passed the decree, and all the provisions of that Code as to the execution of decrees shall apply accordingly.
