Attachment of properties of malafide transferees

(1) Where the assets available for attachment of a Financial Establishment or other person referred to in section 3 are found to be less than the amount or value which the Financial Establishment is required to repay to the depositors and where the Court of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted under this Act is satisfied by affidavit or otherwise that the said Financial Establishment has transferred (whether after the commencement of this Act or not) any of the property otherwise than in good faith and for consideration the Court of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted under this Act may, by notice, require any transferee of such property (whether or not he received the properly directly from the said Financial Establishment) to appear on date to be specified in the notice and show cause why so much of the transferee’s property as is equivalent to the proper value of the property so transferred should not be attached. (2) Where the said transferee does not appear and show cause on the specified date or where after investigation in the manner provided in sub-section (5) of section 10, and the Court of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted under this Act is satisfied that the transfer of the property to the said transferee was not in good faith and for consideration, the Court of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted under this Act shall order the attachment of so much of the said transferee’s property as is in the opinion of the Court of District and Sessions Judge of Competent Jurisdiction or the Special Court constituted under this Act is equivalent to the proper value of the property transferred.