Section 18 in Tamil Nadu Debt Conciliation Act, 1936
18. Grant of certificate in respect of certain debts.
(1)Where, during the hearing of any application made under section 4, any creditor refuses to agree to an amicable settlement, the board shall, if it is of opinion that the debtor has made such creditor a fair offer which the creditor ought reasonably to accept, grant the debtor a certificate, in such form as may be prescribed in respect of the debts owed by him to such creditor.The board, in coming to a decision whether the offer made is fair or not, may take into consideration-(i)the fall or rise in the value of land and its produce in the locality;(ii)the amount of consideration actually received;(iii)the reasonableness of the rates of interest;(iv)the onerous conditions, if any, subject to which the loan was granted;(v)whether at any time, the creditor or the debtor was offered settlement of the debt in full or part and if so what the terms were; and(vi)any other particulars which the board thinks it desirable to take into account.(2)Power of Court to disallow costs or interest. - Where any creditor, sues in a Civil Court for the recovery of a debt in respect of which a certificate has been granted under sub-section (1), the Court shall, notwithstanding the provisions of any law for the time being in force, not allow the plaintiff any costs in such suit, or any interest on the debt after the date of such certificate in excess of simple interest at 6 per cent per annum on the principal amount due on the date of such certificate.(3)Decrees in suits after registration of agreement not to be executed. - Where after the registration of an agreement under sub-section (2) of section 14, any unsecured creditor sues for the recovery of a debt (other than a debt incurred subsequent to such agreement) in respect of which a certificate has been granted under sub-section (l) or any creditor sues for the recovery of a debt incurred after the date of such agreement, any decree passed in such suit shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (Central Act V of 1908), not be executed as against the assets, if any, set apart in the agreement for the satisfaction of the agreed debts until all amounts recorded as payable under such agreement have been paid.
