Section 11: Preparation of a scheme of repayment and transfer of debtor's property

(1) When the amount due has been determined under section 10 the Debt Relief Court shall after taking into account the liability of the debtor in respect of claims referred to in section 4, prepare a scheme of payment of the debtor's debts. (2) If the debtor has transferable property which he is willing to transfer to enable him to repay the whole or any part of his Debts, the Debt Relief Court may sanction such transfer on such conditions as it may think necessary to impose in order to safeguard the rights of the creditors including those to whom any liability referred to in section 4 is due and may grant such reasonable time as is necessary for the debtor to transfer such property:— Provided that, when there iS any mortgage, lien or charge upon the property, such sanction shall be given only upon terms which will ensure that such mortgage, lien or charge shall subsist to such extent as is sufficient to safeguard the interests of the secured creditor: Provided further that when a transfer has been agreed to before the Debt Relief Court by the parties to the proceedings and either party fails to complete the transaction within a period of sixty days, the court may take action, as far as may be, under Order XXI, rule 32 of the First Schedule to the Code of Civil Procedure, 1908 (Central Act V of 1908) : (3) if, after the transfer of property, if any, under sub-section (2), the debts as determined under section 10 have not been satisfied, the Debt Relief Court shall fix instalments for the repayment of the remaining debts in such manner, as may be prescribed and may, in case of default, order payment of simple interest at a rate not exceeding four per cent, if the debt is unsecured and three percent if it is secured: Provided that, if in the opinion of the Court, such debtor has unreasonably refused to transfer property in satisfaction of the whole or part of his debts, it may award a rate of interest not exceeding six percent per annum in the case of secured loans and nine percent per annum in the case of unsecured loans : Provided further that, in fixing instalments, the Debt Relief Court shall have regard to the extent of the transferable property in the possession of the debtor and his paying capacity to be determined by rules made by the State Government in this behalf. (4) When instalments have been fixed under the preceding sub-section, the Debt Relief Court shall draw up a final decree under its seal and signature of the Judge or Judges thereof and such decree shall be deemed to be a decree of the lowest Civil Court having jurisdiction over the local area in which the debtor ordinarily resides or earns his livelihood & shall be executable as such but no appeal shall lie therefrom nor shall lawyer's fee be taxed therein.