Prohibition of use of the word “co-operative” or its equivalent

(1) No person, other than a co-operative society, shall trade or carry on business under any name or title of which the word “co-operative” or its equivalent in any Indian language is part without the sanction of the Government: Provided that nothing in this sub-section shall apply to the use by any person or his successor-in-interest of any name or title under which he traded or carried on business on the date on which the Co-operative Societies Act, 1912 (2 of 1912) came into operation. (2) Whoever contravenes the provisions of sub-section (1) shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing offence with further fine of fifty rupees for each day on which the offence is continued after conviction thereof. The liquidator shall keep such books and accounts as may be laid down by the Registrar from time to time. The Registrar may at any time cause such books and accounts to be audited. (ii) Where the property to be attached is a negotiable instrument not deposited in a court nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the officer of the Recovery Officer ordering the attachment and be held subject to his further order.

(iii) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer requesting that such property or any interest or dividend becoming payable hereon may be held subject to further orders of the Recovery Officer issuing the notice;

Provided that where such property is in the custody of court, any question of title or priority arising between the decree holder and any other person not being the defaulter claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be determined by such court.

(8) (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge the attachment shall be made by the order of the Registrar if the decree sought to be attached is under section 56 or by an arbitrator.

(ii) Where the property is to be attached is a decree of the nature referred to in clause (i) the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree, prohibiting him from transferring or charging the same in any way.

(iii) The holder of a decree attached under this sub-rule shall give the Recovery Officer executing the decree such information and aid may reasonably be required.

(iv) On the application of the holder of a decree sought to be executed by the attachment of another decree the Recovery Officer making an order of attachment under this sub-rule shall give notice of sub order to the defaulter bound by the decree attached, and no payment of adjustment of the attached decree made by the defaulter is contravention of such order after receipt of notice thereof, either through the said Recovery Officer or otherwise, shall be recognised so long as attachment remains in force.

(9) Where the movable property to be attached is: (a) a debt due to the defaulter in question; or (b) a share in the capital of a corporation or a deposit invested there in; or (c) other movable property and in the possession of the defaulter, except property deposited in or in the custody, of any civil court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting; (i) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof; (ii) in the case of a share or deposit, the person in whose name the share or deposit may be standing, from transferring the share or deposit or receiving any dividend or interest thereon; and (iii) in the case of any other movable property not in the possession of the defaulter, the person in possession of it from giving it over to the defaulter.

A copy of such order shall be sent in the case of debt, to the debtor in the case of share or deposit to the proper officer of the corporation and in the case of the movable property except as aforesaid to the person in possession of such property. As soon as debt referred to in clause (a) or the deposit referred to in clause (b) above mature, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not withdrawable, the said Recovery Officer shall arrange for its sale through a broker. Where the share is withdrawable, its value shall be paid to the Recovery Officer or to the party referred to in clause(e) the person concerned shall place it in the hands of the said Recovery Officer as it becomes deliverable to the defaulter.

(10) The immovable property shall not be sold in execution of a decree; unless such property has been previously attached; Provided that the decree has been obtained on the basis of a mortgage of such property, it shall not be necessary to attach it.

(11) In the attachment and sale without attachment of immovable property, the following procedure shall be observed: a) The application presented under sub rule (i) shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or number and specification of the defaulter's share or interest in such property to the best of the belief of the decree holder and so far as he has been able to ascertain it.

b) The demand notice issued by the Recovery Officer under sub rule (3) shall contain the name of the defaulter, the amount due including the expenses, if any, the time allowed for payment in case of non-payment the particulars of properties to be attached and sold or to be sold without attachment as the case may be. After receiving the demand notice the Sale Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult male member of his family at his usual place of residence, or upon his authorised agent or if personal service is not possible shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment as the case may be. Provided that where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceedings against him is about to dispose of the whole or part of his property, the demand notice issued by the Recovery Officer under sub-rule (3) shall not allow any time for the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith.

c) If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the Sale Officer shall proceed to attach and sell or sell without attachment, as the case may be, the immovable property noted in the application for execution in the manner specified below.

d) Where attachment is required for sale, the Sale Officer shall if possible cause a notice of attachment served on the defaulter personally. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulter's last known residence, if any. The fact of attachment shall also be proclaimed by the beat of drum or other customary mode at some place on or adjacent to such property and such other place or places as the Recovery Officer may consider necessary to give due publicity to the sale. The attachment notice shall be set forth that unless the amount due with interest and expenses if any, be paid within the date therein mentioned the property will be brought to sale. A copy thereof shall be sent to the decree holder. Where the Sale Officer so directs, the attachment shall be notified by public proclamation in the Official Gazette.

e) Proclamation of sale shall be published by affixing a notice in the office of the Recovery Officer and Tehsil Office in which the property is situated at least thirty days before the date fixed for the sale and also by beat of drum in the village or locality on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale. Such proclamation shall, where attachment is required before sale, be made after the attachment has been effected. Notice shall also be given to the decree holder and the defaulter. The proclamation shall state the time and place of sale and specify as fully and accurately as possible :- (i) the property to be sold; (ii) any in-cumbrance to which the property is liable; (iii) the amount for the recovery of which sale is ordered; and (iv) every other matter which the Sale Officer considers material for a purchaser to know in order to judge the nature and the value of the property.

f) When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The decree holder shall, when the amount for the realisation of which the sale is held exceeds Rs. 100, furnish to the Sale Officer within such time as may be fixed by him or by the Recovery Officer an encumbrance certificate from the Registration Department or Revenue Department for a period of not less than twelve years prior to the date of the attachment of the property sought to be sold, or in case falling under the provision to sub-rule (10), prior to the date of application for execution. The time for the production of encumbrance certificate may be extended at the discretion of the Sale Officer or the Recovery Officer, as the case may be. The sale shall be by public auction to the highest bidder; provided that it shall be open to the Sale Officer to decline to accept the highest bid where price offered appears to be unduly low or for other reasons and provided also that the Recovery Officer or the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour, recording his reason for such adjournment. Where a sale is so adjourned for a longer period than seven days a fresh proclamation under clause (e) shall be made unless the defaulter consents to waive it. The sale shall be held after the expiry of not less than thirty days calculated from the date on which the notice of the proclamation was affixed in the office of the Recovery Officer. The time and place of the sale shall be fixed by the Recovery Officer and the place of sale shall be the village or locality, where the property to be sold is situated or such adjourning prominent place of public resort as may be fixed by the said Recovery Officer; Provided that in cases where an encumbrance certificate is not obtainable owing to destruction of the connected records, an affidavit from the village Patwari in regard to the encumbrances known to him supported by a certificate from the Registration Department or Revenue Department that the encumbrance certificate cannot be granted owing to the destruction of the connected records, shall be accepted in place of an encumbrance certificate.

g) A sum of money equal to fifteen percent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of the purchase, and in default of such deposit the property shall be forthwith resold; Provided that where the decree holder is the purchaser and is entitled to set off the purchase money under clause (k) the Sale Officer shall dispense with the requirement of this rule;

h) The remainder of the purchase money and the amount required for the general stamp for the sale certificate shall be paid within fifteen days from the date of sale;