(1) The tribunal shall call upon the applicant and all his creditors to explain their respective cases regarding each debt and shall use its best endeavour to induce them to arrive at an amicable settlement,
(2) If there is a dispute as to the existence or the amount of the debt due to a creditor or the assets of a debtor, the tribunal may decide the dispute after taking such evidence as it considers necessary:
Provided that a decree of a civil court relating to a debt shall be conclusive evidence as to the existence and amount of the debt.
9. (I) No creditor shall be allowed a greater amount in satisfaction of both the principal and interest of a debt than twice the amount of the principal and accordingly—
(i) if, in the course of the proceedings before the tribunal, it is found that any of the creditors has received from his debtor twice or more than twice the amount of the principal in cash or in kind by way of realisation of coconuts or copra under the terms of the agreement relating to the debt, the tribunal shall pass orders that the debt shall be deemed to have been fully discharged and shall declare that the debtor shall, from the date of the order, be in lawful possession of the property or coconut trees secured for the debt that is deemed to have been discharged;
(ii) it, in the course of such proceedings, it is found that with respect to any debt, the amount received in cash or in kind by way of realisation of coconuts or copra as aforesaid, by the creditor falls short of twice the amount of the principal, the tribunal shall pass orders that only such amount as, together with the amount already so received, will be equal to twice the amount of the principal, shall be repayable with respect to such debt.
(2) For the purposes of clauses (i) and (ii) of sub-section (1), the money equivalent of the coconuts or copra realised by the creditor shall be computed in the prescribed manner on the basis of the average market price of coconuts or copra, as the case may be, for three years immediately preceding the commencement of this Regulation.
Power of tribunal to effect settlement and to decide dispute as to existence or amount of debt or assets.
Maximum amount allowable in settlement of a debt and powers of tribunal in respect thereof.
28 THE GAZETTE OF INDIA EXTRAORDINARY [PART XI