(1) A debtor may deposit the money due in respect of loan received by him from any person together with interest at the rate fixed by the Government under section 28 of the Karnataka Money Lenders Act, 1961 into the Court having jurisdiction, along with a petition to record that the amount deposited is in full or part, satisfaction of the loan including the interest therefor, as the case may be.
(2) The Court shall, on receipt of a petition under subsection (1), refer a copy of the petition to the person mentioned 628 in the petition, directing him to give his replies within a period of fifteen days as may be granted by the Court. The Court may, after due inquiry and after considering the versions of both the parties, pass orders recording the satisfaction of the loan and interest therefor in full or in part, as the case may be.