(1) If any debtor and all or any of his creditors arrive at a settlement in respect of any debt due by the debtor to the creditor or creditors, the debtor or any creditor may, within thirty days from the date of such settlement, make an application to the Court for recording such settlement.
(2) Every such application shall be in the prescribed form and shall be signed and verified and presented in the prescribed manner.
(3) On receipt of such application, the Court shall, after giving notice in the prescribed manner to the creditor or creditors or the debtor, as the case may be, and after making such inquiry as it thinks fit, if it is satisfied that the settlement arrived at is bona fide and voluntary, and is not made with intent to defeat or delay any of the creditors of the debtor, and is in the interest of the debtor, record such settlement and certify the same. Every such settlement so recorded and certified shall be binding upon the parties thereto, and shall not, save as otherwise hereinafter provided, be re-opened.
(4) After the Court has recorded and certified a settlement under sub-section (3), the Court shall call upon the debtor to make a declaration whether there are any other debts due by the debtor which are not included in the settlement. If the debtor makes a declaration that there are no such debts the Court shall make an inquiry and ascertain that there are no debts other than those included in the settlement, and then make an award in terms of such settlement.
(5) If the Court, on making an inquiry under sub-section (4), is satisfied that there are other debts due from the debtor which are not included in the settlement, the Court shall treat the application made under sub-section (1) as an application for adjustment of debts under section 24.