(1) Every debt due from a debtor in respect of which no application has been made under section 11 within the period specified in the said section 11 or in respect of which no application for recording a settlement is made under section 15 within the period specified in the said section 15 or in respect of which an application made to the Board is withdrawn under section 19 and no fresh application is made under section 11 and every debt due from such debtor in respect of which a statement is not submitted to the Board by the creditor in compliance with the provisions of section 21 shall be extinguished.
(2) Nothing contained in sub-section (1) shall apply-
(a) to any debt in respect of which the debtor and creditor agree in writing before the Board that the said sub-section shall not apply thereto, or
(b) to any debt due from any person who has by his declaration, act or omission intentionally caused or permitted his creditor to believe that he is not a debtor for the purposes of this Act or that no application under section 11 can be entertained in respect of any debt owed by such person to such creditor by reason of the provisions of section 18.