Release by Creditors under Composition Scheme

Release by Creditors under Composition Scheme

This deed of release is made this ………………… day of ……………… 1999 between AB son of ……………………… CD residing at …………………… and EF residing at ……………… (hereinafter called the creditors which term shall include their successors and assigns) of the One Part and XY son of ………………… residing at ……………… (hereinafter called the debtor which term shall include his heirs successors and legal representatives of the Other Part.

Whereas the debtor was and still is indebted to each of the creditors, whose names, addresses and descriptions are given in the schedule hereto, in the several sums written opposite their names in the said schedule: and whereas the creditors have agreed with the debtor to accept a composition of …………… in the rupee in full satisfaction and discharge of their respective claims and to forego, release and discharge the balance on terms and conditions hereinafter appearing. Now this deed witnesses that in consideration of the mutual benefits between the parties under the scheme of composition as to payments of their respective dues the said creditors do and each of them doth hereby release and discharge the debtor and his heirs, executors, administrators and representatives from all their debts and claims other than the portion payable under the deed of composition on condition that the debtor shall pay or cause to be paid to each of the creditors on or before the ……………… day of ………………, a composition of …………… in the rupee on their debts:

Provided, however, and, it is hereby agreed that notwithstanding anything hereinbefore stated, this release shall stand ipso facto void and be of no effect, if the said payments or any one of them be not made on or before the above stipulated date or dates or if the debtor be adjudged an insolvent before the said date of payment, provided also that this release shall be without prejudice to the right of the creditors to proceed against the sureties or guarantors or co-debtors of the debtor for their debts specified in the schedule hereto.

The creditors hereby agree with the debtor that this release shall be effectual and binding on them, although some creditors other than those who have executed this deed do not agree with the scheme of composition and are not willing to give up their right to realize in full their debts or claims.

It is hereby declared that the amount or value of the claims hereby renounced is Rs.………………

The Schedule above referred to

SerialNo. Name and address of the creditor Amount of debt or claim Date of payment Remarks
1234

5

6

7

8

9

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

Signed, sealed and delivered by AB, CD, EF the creditors in the presence of:

Signed, sealed and delivered by XY

the debtor in the presence of:

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