Section 60: Opportunity to be provided to reconcile sum of debts

1) If the court has made an order to commence the bankruptcy proceedings pursuant to sub-section (1) of Section 58, the Local Level, trustee or person, as the case may be entrusted with responsibility to manage property pursuant to sub-section (3) of the same Section shall, after the assets, debts and other liabilities of the borrower are ascertained, call a meeting of the debtors, creditors or other claimants.

2) In the meeting called pursuant to sub-section (1), the creditor or claimant shall be provided with a reasonable opportunity to waive his or her claim wholly or partly from all or any of the assets of the borrower or to reconcile the sum by taking amount lesser than his or her claim, by mutual understanding between the person likely to become bankrupt and the creditor or other claimant.

3) In making reconciliation of sum pursuant to subsection (2), an arrangement may be so made that a creditor pays the debt or claim of some or most creditors and submits a lump sum claim against such a person.

4) If the parties reach a mutual understanding pursuant to sub-section (2) or (3) or the concerned parties agree, for any reason, to stay the bankruptcy proceedings for the time being, a joint petition may be filed in the court accordingly.

5) If a petition is filed for staying the bankruptcy proceedings pursuant to sub-section (4), the court shall make an order to stay as requested the bankruptcy proceedings for a period not exceeding the period set forth in clause (b) of sub-section (2) of Section 54.

6) If an order is made pursuant to sub-section (5), the bankruptcy proceedings in respect of the assets of such a person cannot be instituted until the expiry of that period.