(1) On receipt of an application for adjustment of debts, the Court shall give notice to the Collector requiring him to state to the Court within such time as may be fixed by it the amount of the debt due by the debtor to Government.
(2) The Court shall also give similar notice to any local authority, co-operative society [scheduled bank or merged State bank] to which any debt may be due by the debtor and also to any person who is entitled to maintenance from the debtor, under a decree or order passed by a competent Court. In the case of any debt due to a co-operative society, the Court shall also give notice to the Registrar of Co-operative Societies or to such officer as the Registrar may nominate in this behalf.
(3) On receipt of such notice the Collector, the local authority, the co-operative society [the scheduled bank or the merged State bank] or the person entitled to maintenance, as the case may be, shall, within such time as may be fixed by the Court, from time to time submit a statement to the Court showing the total amount of the debt due by the debtor as also any recurring liability against such debtor in respect of the liability for maintenance under the decree or order.
(4) The Collector [the co-operative society, the scheduled bank and the merged State bank] shall also furnish a statement to the Court showing the amount of remission which the [State] Government, the co-operative society, [the scheduled bank or the merged State bank], as the case may be, is willing to give in respect of the debt.
(5) The portion of any debt remitted under sub-section (4), and unless the Court otherwise directs any debt or portion thereof in respect of which no statement is submitted under sub-section (3), shall be extinguished.