(1) Notwithstanding the fact that no application has been filed under section 4-
(a) every creditor, on being required to do so by notice in writing by any of his debtors, shall, within two months from the date of the receipt of such notice, file before the Court a true and correct statement of all his claims against such debtor, and shall at the same time send a copy thereof to such debtor, and
(b) every debtor, on being required to do so by notice in writing by any of his creditors, shall, within two months from the date of the receipt of such notice, file before the Court a true and correct statement-
(i) of all the debts owned by such debtor;
(ii) whether he holds any land used for agricultural purposes and whether he has been cultivating land personally;
(iii) of his income from agriculture and from sources other than agriculture in the year preceding the date of the notice.
The debtor shall at the same time send a copy of such statement to such creditor:
Provided that the Court may, for sufficient cause, extend, from time to time, the period within which the creditor or the debtor, as the case may be, may file such statement.
(2) Every debtor or creditor giving a notice under sub-section (1) shall at the same time send a copy thereof to the Court.
(3) In awarding the costs of any proceeding in respect of any application made under section 4 the Court may, on being satisfied that the statement required to be filed under sub-section (1) was, without sufficient cause, not filed within the time specified therein or within the period extended under the proviso to sub-section (1) or incorrectly filed, direct the party in default to bear the whole or any portion of the costs of such proceeding.