(1) On the date fixed, the Board shall issue a notice calling upon every creditor of the debtor to submit in writing a statement of debts owed to such creditor by the debtor.
(2) Every debt owed to a single creditor, of which no such statement has been submitted to the Board in compliance with the provisions of sub-section (1), shall be deemed to be duly discharged for all purposes and all occasions against such creditor ; and every debt owed to two or more creditors jointly, of which such a statement or statements signed by all such creditors or their recognised agent has or have not been submitted, shall be deemed to be so discharged against such creditors as have failed to submit the said statement or statements, but only to the extent of their respective share, in the said debt :
Provided that no such debt shall be deemed to be discharged against any creditors whose names have not been included in the application made section 4 by the debtor.
(3) Where the creditor, or any of the joint creditors, fails without sufficient cause to be present in person or by an authorised agent in accordance with the provisions of section 31 at any of the hearings fixed by the Board or fails to produce full particulars and documents as required by sub-section (1) of section 9, the debt due to him or to the joint creditors, as the case may be, shall, subject to the provisions of sub-section (4), be deemed for all purposes and all occasions to have been fully discharged.
(4) Where the creditor against whom an order has been made under subsection (3) makes an application within thirty days of such order and proves that the notice was not served on him or that he was unavoidably absent at the hearing on which such order was made by the Board, the Board may restore the application subject to such terms as the Board thinks fit.
(5) Where the creditor appears and the debtor does not appear when the case is called on far hearing, then––
(i) if it is proved that the notice was duly served on him in time to enable him to appear and answer on the date fixed, the Board may proceed ex parte ; or
(ii) if it is not proved that the notice was so served, the Board shall direct second notice to be issued and served on the debtor.
(6) Where the Board has adjourned the hearing of the case ex parte, and the debtor at or before such hearing, appears and assigns good cause for the previous non-appearance, he shall be heard in answer to the case as if he had appeared on the date fixed for his appearance.
(7) Where the Board has proceeded ex parte against a debtor and no action is taken under sub-section (6) it shall dispose of the case in the mode prescribed by section 16, as far as it is possible, and may make such order as it thinks fit.
(8) If any debtor proves to the satisfaction of the Board that the notice was not served on him or that he was unavoidably absent at any hearing fixed by the Board, the Board may set aside the order passed ex parte, subject to such terms as the Board thinks fit.
(9) An application by a debtor for any order to set aside an ex parte adjudication may be made within thirty days from the date of the adjudication or where the notice was not duly served, when applicant had knowledge of such adjudication.