167. (1) Subject to sub-section (6), on an application by the bankruptcy
trustee, the Adjudicating Authority may make an order under this section in
respect of extortionate credit transactions to which the bankrupt is or has
been a party.
(2) The transactions under sub-section (1) should have been entered into by
the bankrupt during the period of two years ending on the bankruptcy
commencement date.
(3) An order of the Adjudicating Authority may-
(a) set aside the whole or part of any debt created by the transaction;
(b) vary the terms of the transaction or vary the terms on which any
security for the purposes of the transaction is held;
(c) require any person who has been paid by the bankrupt under any
transaction, to pay a sum to the bankruptcy trustee;
(d) require any person to surrender to the bankruptcy trustee any property
of the bankrupt held as security for the purposes of the transaction.
(4) Any sum paid or any property surrendered to the bankruptcy trustee shall
be included in the estate of the bankrupt.
(5) For the purposes of this section, an extortionate credit transaction is
a transaction for or involving the provision of credit to the bankrupt by
any person-
(a) on terms requiring the bankrupt to make exorbitant payments in respect
of the credit provided; or
(b) which is unconscionable under the principles of law relating to
contracts.
(6) Any debt extended by a person regulated for the provision of financial
services in compliance with the law in force in relation to such debt, shall
not be considered as an extortionate credit transaction under this section.