Agreement for Composition with Creditors with Surety

Agreement for Composition with Creditors with Surety

This agreement  is made this ………… day of ………… between AB residing at ………………… (hereinafter called the DEBTOR) of the first part, CD and EF sons of …………………… residing at ………………… (hereinafter called the sureties) of the second part and the several persons being Creditors of the DEBTOR whose names and addresses are entered in the Schedule hereunder (hereinafter called the creditors) of the third part; whereby it is agreed as follows:

1. In consideration of the DEBTOR having procured the guarantee of the above-mentioned sureties, the creditors of the DEBTOR of the amounts and extents set out as against their respective names in the schedule below do hereby and hereunder jointly and severally agree with the DEBTOR to accept in full discharge of their respective original debts irrespective of the amounts particulars of which are set opposite to their respective names in the said schedule, a composition of …………… paise in the rupee to be paid as hereunder mentioned.

2. The said composition shall be paid by …………… instalments, the first of …………… paise in the rupee in …………… calendar months from the date hereof, the second of……………… paise in the rupee in …………… calendar months from the date hereof, and the third instalment of …………… paise in the rupee in …………… calendar months from the date hereof.

3. The said several instalments shall be secured by promissory notes to be executed by the sureties jointly with the DEBTOR for the respective amounts of the instalments or by bonds to the effect that the DEBTOR and the sureties will jointly and severally bind themselves unto the creditors that they, the DEBTOR and the sureties, shall remain liable to and shall duly and punctually pay to the creditors the said several instalments in the manner and at the times aforesaid.

4. Upon payment of the said respective amounts by the instalments and in manner aforesaid, the creditors and each of them shall accept the same in full and final settlement and satisfaction of their respective claims and at the request and costs of the DEBTOR release and discharge the DEBTOR from the said debts and from all claims, demands and remedies in respect thereof.

5. This agreement shall operate as a bar to any action hereafter by any of the creditors against the DEBTOR in respect of the said several debts or any of them so long he shall pay or cause to be paid the instalments hereunder provided in the manner hereinbefore indicated without any delay or default except, however, in case if the DEBTOR is adjudicated insolvent when and in such an event it will stand revoked.

6. If a default shall be made in the payment of the said instalments or any one of them, the creditors shall then and in such a case be at liberty to enforce payment of the balance due to them under the composition, or to claim payment of their respective original dues after giving credit to the DEBTOR for all sums actually received by them hereunder respectively.

The Schedule above referred to giving the

names and addresses of the creditors, short

particulars of the debts and instalments payable

Serial

No.

 Name and address

of the creditor

Particulars

of the debts

Security

if any

Remarks

In witness whereof the parties have executed these presents on the day, month and year first above-written.

Signed, sealed and delivered by AB

Signed, sealed and delivered by CD and EF

Signed, sealed and delivered by the

creditors named in the Schedule

in the presence of:

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