61. Power of 3[Tribunal] to reduce contracts of insurance.-
(1) Where an insurance company is in liquidation or any other insurer is insolvent the 3[Tribunal] may make an order reducing the amount of the insurance contracts of the company or other insurer upon such terms and subject to such conditions as the 3[Tribunal] thinks just.
(2) Where a company carrying on the business of life insurance has been proved to be insolvent, the 3[Tribunal] may if it thinks fit in place of making a winding up order reduce the amount of the insurance contracts of the company upon such terms and subject to such conditions as the 3[Tribunal] thinks fit.
(3) Application for an order under this section may be made either by the liquidator or by or on behalf of the company or by a policy-holder, or by the 4[Authority] and by any person whom the 3[Tribunal] thinks likely to be affected shall be entitled to be heard on any such application.