Notwithstanding anything contained in any other law for the time being in force or any contract or other instrument having force by virtue of any such law, and save as otherwise expressly provided in this Act, the consequences as hereinafter set forth shall, with effect from the date of commencement of this Act, ensue, namely:
(a) every debt advanced before the commencement of this Act including the amount of interest, if any, payable by a debtor to a creditor, shall be deemed to be wholly discharged;
(b) no such debt due from the debtor shall be recoverable from him or from any movable or immovable property belonging to him, nor shall any such property be liable to be attached and sold or proceeded against in any manner in the execution of any decree or order relating to such debt against him;
(c) no Civil Court shall entertain any suit, appeal, or proceeding against debtor for the recovery of any amount of such debt including interest, if any:
Provided that where a suit, appeal or proceeding is instituted jointly against a debtor and any other person, nothing in this clause shall apply to the maintainability of a suit or proceeding in so far as it relates to such other person;
(d) all suits and proceedings (including appeals, revisions attachment or execution proceedings) pending on the date of commencement of this Act for recovery of any such debt against a debtor shall abate;
Provided that nothing in this clause shall apply to a sale which has been confirmed before the commencement of this Act;
(e) every debtor undergoing detention in a civil prison in execution of any decree for money passed against him by a civil court in respect of any such debt shall be released;
(f) every movable property pledged by a debtor shall, on the commencement of this Act, stand released in favour of such debtor, and the creditor shall be bound to return the same to the debtor forthwith;
(g) every mortgage executed by such debtor in favour of the creditor shall stand redeemed and the mortgaged property shall be released by the creditor in favour of such debtor.
Explanation I—Nothing in this section shall be construed to entitle any debtor to a refund of any part of a debt already repaid or recovered from him before the commencement of this Act.
Explanation II—For the purposes of this Act „mortgage‟ includes a transfer under an agreement express or implied for re- transfer within a specified period on repayment of the consideration money.
4. (1) Every creditor referred to in Cl. (f) Section 3 shall, within such period as may be prescribed, furnish to the Tribunal having jurisdiction over the area where such creditor has his ordinary place of business, a statement in such form as may be prescribed containing the names of all persons who have pledged movable property with him, the nature and description of such property, the amount advanced and due as on the commencement of this Act, the rate of interest and such other particularizes may be prescribed.
(2) A debtor referred to in Cl. (f) of Section 3 may also make an application to the Tribunal having jurisdiction over the area where his creditor has his ordinary place of business for an order for the delivery of the movable property pledged by the debtor.
(3) On receipt of a statement under sub-section (1) or an application under sub-section (2), and after such enquiry conducted in the manner prescribed, the Tribunal shall, by order, determine—
(i) where a statement has been furnished by the creditor under sub-section (1), which of the “persons who have pledged movable property with him are entitled to relief under Section 3, and
(ii) where an application has been made by the debtor under sub-section (2), whether the debtor is entitled to relief under Section 3, and
(iii) direct the creditor to produce on or before the date specified in the order the movable property pledged by such person or debtor.
(4) Where the movable property pledged by the debtor is in the possession of any transferee of the creditor, the creditor shall redeem the said property from such transferee and produce it on or before the date specified in the order referred to in sub-section (3).
(5) If the creditor fails to produce the movable property as directed in the order under sub-section (3)—
(a) the Tribunal may enter any premises of the creditor or of the transferee of the creditor and search and seize the said property; and
(b) Where the movable property is in possession of any bank, the Tribunal shall—
(i) by an order, direct the bank to deposit on or before the date specified in the order, the property with the Tribunal together with a statement specifying the amount due to the bank in respect of the said property and simultaneously issue a certificate to the bank to the effect that the amount due to the bank in respect of the said property shall be recovered from the creditor as if it were an arrear of land revenue and paid to the bank, and
(ii) on the bank depositing the said property with the Tribunal, acknowledge in writing the receipt of the property and proceed to recover from the creditor such amount as is due to the bank in1 respect of the said property as if it were an arrear of land revenue, and on such recovery pay the same to the bank.
(6) After such production on recovery of deposit of the property pledged the Tribunal shall deliver the said property to the debtor.
(7) Pending determination of the question under sub-section (3), no creditor or the transferee of the creditor shall sell or pledge or otherwise dispose of any movable property pledged by the debtor.
(8) Notwithstanding anything contained in any other law, the Tribunal—
(a) may enter any premises of the creditor or of the transferee of the creditor and search and seize the movable property pledged be debtors and arrange for their safe custody;
(b) shall proceed to determine which of the movable properties so seized are to be released to the debtors and pass orders accordingly.
(9) The provisions of Ss. 100 and 165 of the Code of Criminal Procedure, 1973 (II of 1974) relating to search and seizure shall, so far as may be, apply to searches and seizures under sub-Ss. (5) and (8).