(1) After determining the amount of the debts due to the creditors in accordance with the provisions of section 18, the Court shall make an award.
(2) The award shall be in the prescribed form and shall be drawn up subject to the following provisions :-
(i) the amount of the secured debts [scaled down] shall be charged on the properties on which they may have been secured;
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(iii) in fixing the priority in which debts shall be paid, the following order shall be followed :-
(a) debts due to Government which are charged on the immovable property belonging to the debtor or which are recoverable as the current years land revenue,
(b) debts due to local authorities, which are charged on the immovable property belonging to the debtor or which are recoverable as the current years dues,
(c) loans given by resource societies or by persons authorised to advance loans under section 50 of this Act,
(d) secured debts in order of priority,
(e) other debts due to co-operative societies not being resource societies,
(f) debts due to notified banks,
(g) unsecured debts :
Provided that, in the case of unsecured debts, they shall be paid pro rata.
Explanation.- In this clause, "notified bank" means a bank incorporated in any part of the State and notified by the State Government in the Official Gazette, for the purposes of this Act as a notified bank.
(iv) the total annual instalments shall not exceed twelve :
Provided that, the fixing the amount of instalments in which the debts shall be paid, the Court shall ascertain the net annual income of the debtor, and the annual instalments payable by the debtor shall not exceed his net annual income.
Explanation.- For the purposes of this clause, the net annual income of the debtor means the balance of his annual income after deducting (i) such sum as may be considered necessary for the payment of the liability, if any, imposed on the debtor under a decree or order for maintenance passed by a competent Court, (ii) such sum as may be considered necessary for the maintenance of the debtor and his dependants, that is to say, his spouse and his children, whether married or unmarried, his parents, sisters and daughters-in-law, if such persons (other than the spouse) are depending on him for their maintenance, and (iii) the sum required by the debtor to pay the assessment and taxes in respect of the current year to Government and to local authorities and to pay off loans borrowed for the purpose of the financing of crops or seasonal finance under any law;
(v) the Court may pass an order for the delivery of possession of any property, notwithstanding any law or contract to the contrary;
(vi) the rate of interest shall not exceed 6 per cent. per annum or such less rate as may be notified in this behalf by the State Government or the rate agreed upon between the parties when the debt was originally incurred or the rate allowed by the decree in respect of such debt, whichever is the lowest.