After said petition has been filed with the clerk and if the same pray for a hearing in vacation, the clerk shall thereupon refer the same to the chancellor of said court with the request that he set the matter and fix the time, date, and place for the hearing thereof by him in vacation, and it shall be the duty of the chancellor to fix and set a time, date, and place for the hearing by him of said petition in vacation. When done, the clerk of said court shall cause a notice to be published which shall be addressed to all persons interested in the affairs of said drainage district and shall command them to appear at the time, date, and place set for the hearing of said petition to show cause, if any they can, why the prayer of said petition should not be granted. Said notice shall further command them to be present and file in said proceeding, on or before the time and date set for the hearing of said petition, any and all claims which they might have against said district, and that any and all claims not so presented and filed shall be forever barred, except the claims of holders of bonds or certificates of indebtedness legally issued by said district and the interest thereon. Said notice shall be published in a newspaper published in each of the counties in which the lands of the district lie for once in each week for three successive weeks, and said publication shall be deemed completed and said matters shall be deemed ready for hearing on their merits on the day fixed therefor in said order and the notice so published, provided not less than twenty-one days have intervened from the date of the first publication of said notice and the date fixed in said order and given in said notice published for said hearing.

After the time, date, and place has been set for the hearing of said petition as above provided, the clerk of said court shall issue a summons for each of the constituted authorities of said district, commanding them to appear before the court or chancellor in vacation at the time, date, and place so set for the hearing of said petition and to file in said proceeding, on or before the time and date set for the hearing thereof, a written statement under oath, showing in detail the full amount of bonds or certificates of indebtedness issued by said district, the amount paid, the amount outstanding, the amount of interest due thereon at the date of said hearing, as well as the amount of any other indebtedness of said district that is outstanding at the time.

If the petition as filed does not ask for said matters to be heard by the chancellor in vacation, the clerk shall cause notice to be given that all of the aforesaid matters will be heard on the first day of the next regular term of the said court to be convened after the filing of said petition, which said notice shall be published in the manner and for the length of time as hereinbefore specified.

The chancellor is hereby authorized to hear any and all of said matters in vacation at any place in his district that he might see fit so to do. On the hearing thereof he shall determine and adjudicate as to the sufficiency of said petition, shall determine and adjudicate from the evidence introduced in support thereof whether petitioners are entitled to relief prayed for, and shall likewise determine and adjudicate the amount of all outstanding indebtedness of said district, bonded or otherwise.