(1) Notwithstanding any decree of a Civil Court referred to in sub-section (1) of section 3 of the Madhya Pradesh Act, the amounts found due under section 18 from a debtor shall be further scaled down in the manner hereinafter provided.
(2) If all the debts found due by a debtor after taking accounts under section 18 are unsecured debts, and the total amount of such debts is more than 60 per cent. of the value of the property belonging to the debtor, such debts shall be further scaled down pro rata to the paying capacity of the debtor.
(3) If all the debts found due by a debtor after taking accounts under section 18 are secured debts, and the total amount of such debts is more than 60 per cent. of the value of the property belonging to the debtor, such debts shall be further scaled down pro rata to the paying capacity of the debtor.
(4) If the debts found due by a debtor after taking accounts under section 18 are both secured and unsecured, and if the total amount of the secured debts is more than 60 per cent. of the value of the property on which such debts are secured, the secured debts shall be further scaled down pro rata to 60 per cent. of the value of the property on which such debts are secured, and the unsecured debts shall be further scaled down pro rata to 60 per cent. of the value of the other property belonging to the debtor over which no debts are secured.]