Section 6A: Application for recording settlement

(1) If any debtor and all or any of his creditors arrive at a settlement in respect of debt's due by the debtor to such creditors or creditors, the debtor or all or any of such creditors may, within thirty days from the date of such settlement, make an application to the Debt Relief Court having jurisdiction in the area in which the debtor ordinarily resides or earnes his livelihood, praying for recording such settlement. (2) Every such application shall be in the prescribed form and shall be signed and verified in the manner laid down in sub-section (3) of section 6. (3) On receipt of such application, the creditor or the Court shall, after giving notice in the prescribed manner to the creditor or the debtor, as the case may be, and after making such inquiry as it thinks fit, record such settlement and certify the same if is satisfied that such settlement is bona fide 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. Every settlement so recorded and certified shall be binding and shall not be reopened. (4) After the Debt Relief Court has recorded and certified a setlement under sub-section (3), it shall call upon the debtor to declare if 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 order in terms of the settlement. (5) If the Court is satisfied, after recording and certifying such settlement, that there are also other debts due from the debtor which are not included in the settlement the court shall treat the application under sub-section (1) as having been admitted as an application under section 6.