(1) On the date fixed under sub-section (1) of section 11, the Forum shall issue notice to the creditor of the debtor to submit a statement of debt owed to such creditor by the debtor. Such statement shall be submitted to the Forum in Particulars of application.
Procedure on receipt of application.
Notice calling upon the creditor to submitstatement.
writing giving details of every transaction of debit and credit in the account of the debtor within a period of two weeks alongwith the copies of documents to be relied upon in support of his claim:
Provided that the Forum may extend this period up to one month for submission of statement of debts for the reasons to be recorded in writing:
Provided further that for extension beyond a period of one month, the creditor shall not be entitled to receive any interest for that period and the recovery of loan shall be stayed till the settlement of debt.
(2) Every debt owed to a creditor of which no statement has been submitted to the Forum in compliance with the provisions of sub-section (1),shall be deemed to be duly discharged for all purposes and all occasions against such creditor, and every debt owed to two or more creditors jointly, of which such statements or statements signed by all such creditors or their recognized agents has or have not been so submitted, shall be deemed to be so discharged against such creditors as have failed to submit the said statement, but only to the extent of their respective shares in the said debt:
Provided that no such debt shall be deemed to have been discharged against any creditor whose name has not been included in the application made under section 9.
(3) If a debtor or a creditor fails to appear before the Forum without sufficient cause after due service, the Forum shall proceed ex-parte to determine and settle the debt.