Chapter VII-A Chapter VII-A

Distraint

Cases in which application for distraint may be made. – Where any debt or outstanding demand is due to a registered society from any member, past member or estate of deceased member or is due to a registered society which is duly authorized by the Registrar under any of the provisions of sub-section

1. (1) of section 16 of this Act to grant loans to non-members, from any person who is not a member of a registered society or from the estate of such person if he I dead the society may, in addition to any other remedy to which it is entitled by law, present an application to the Registrar requesting him to recover the debt or outstanding demand by detraining, while in the possession of the defaulter:-
2. (1) any crops or other products of the earth standing or ungathered on the holding of the defaulter;
3. (2) any crops or other products of the earth which have been grown on the holding of the defaulter and have been reaped or gathered and are deposited on the holding or on a threshing floor or place for treading out grain whether in the fields or within a homestead.

Form of application. –

1. (1) Every application under the last foregoing section shall specify-
   • (a) the holding of the defaulter and the boundaries thereof or such other particulars as may suffice for its identification:
   • (b) the name of the defaulter;
   • (c) the detailed account of the dues:
   • (d) the nature and approximate value of the produce to be distrained;
   • (e) the place where it is to be found, or such other particulars as may suffice for its identification: and
   • (f) if it is standing or ungathered at the time at which it is likely to be cut or gathered.
2. (2) The application shall be signed and verified in the manner prescribed by the code of Civil Procedure, 1908 (5 of 1908), for the signing and verification of plaints.

Procedure on receipt of application. –

1. (1) The applicant shall at the time of filing an application under the foregoing sections, file before the Registrar such documentary evidence (if any) as he may consider necessary for the purposes of the application.
2. (2) The Registrar may, after taking such evidence as he thinks, fit, admit the application or reject it.
3. (3) Where the Registrar cannot forthwith admit or reject an application he may, if he thinks fit make an order prohibiting the removal of the produce specified in the application, pending the execution of an order for distaining the same or the rejection of the application.
4. (4) when an order for distaining any produce is made under the section at a considerable time before the produce is likely to be cut or gathered, the Registrar may suspend the execution of the order for such time as he thinks fit and may, if he thinks, fit, make a further order prohibiting the removal of the produce pending the execution of the order for distraint.
5. (5) An order under sub-section
6. (3) or under sub-section
7. (4) shall be served and published in such manner as the state Government may rules prescribe.

Execution of order for distraint. –

1. (1) If an application is admitted under the last foregoing section and an order for distaining any produce is made the Registrar shall send a copy of the order containing the prescribed particulars to the Collector for execution.
2. (2) The Collector shall, upon receipt of the order referred to in sub-section (1), depute an officer to distrain the produce specified therein or such portion of that produce as he thinks fit, and the officer shall proceed to the place where the produce is, and distrain the produce by taking charge of it in this behalf and publishing a notification of the distraint in accordance with rules to that effect made by the State Government. Provided that produce, which from its mature does not admit of being stored, shall not be distrained under this section at any time less than twenty days before the time when it would be fit for reaping or gathering.

Service of demand and account. –

1. (1) The distraining officer, shall at the time of making the distraint, serve on the defaulter a written demand for the amount due and the casts incurred in making the distraint, with an account exhibiting the grounds on which the distraint is made.
2. (2) Where the distraining officer has reason to believe that a person other than the defaulter is the owner of the property distrained, he shall serve copies of the demand and account on that person likewise.
3. (3) The demand and account shall, if practicable be served personally but, if a person on whom they are to be served absconds or conceals himself or cannot otherwise be found, the officer shall affix copies of the demand and account on a conspicuous part of the outside of the house in which he usually resides.

Rights to reap etc., produce. –

1. (1) A distraint under this Chapter shall not prevent any person from reaping, gathering or storing any produce or doing any other act necessary for its due preservation.
2. (2) If the person entitled to do so fails to do so at the proper time, the distraining officer shall cause any standing crops or ungathered products distrained to be reaped or gathered when ripe, and stored in such granaries or other places as are commonly used for the purpose or in some other convenient place in the neighborhood or shall to whatever else may be necessary for the due preservation of the same.
3. (3) in either case the distained property shall remain in the charge of the distaining officer or of some other person appointed by him in this behalf.

Sale proclamation to be issued unless demand is satisfied. –

1. (1) Unless the demand with all costs of distraint, be immediately satisfied that distraining officer shall issue a proclamation specifying the particulars of the property distrained and the demand for which distrained, and notifying that he will, at a place and on a day specified not being less than three of more than seven days after the time making the distraint, sell the distraint property by public auction: Provided that when the crops or products distrained from their nature admit of being stored but have not yet been stored, the day of the sale shall be so fixed as to admit of their being made ready for storing before its arrival.
2. (2) The proclamation shall be struck up on a conspicuous place in the village in which the land of the defaulter is situate.

Place of sale. – The sale shall be held at the place where the distrained property is, or at the nearest place of public resort if the distraining officer is of opinion that it is likely to sell there to better advantage.

57 I. When produce may be sold standing. –

1. (1) Crops or products which from their nature admit of being stored shall not be sold before they are reaped or gathered and are ready for storing.
2. (2) Crops or products which from their nature do not admit of being stored may be sold before they are reaped or gathered, and the purchaser shall be entitled to enter on the land by himself, or by any person appointed by him in this behalf and do all that is necessary for the purposes of tending and reaping or gathering them.

57 J. Manner of sale. – The property shall be sold by public auction, in one or more lots as the officer holding the sale may think advisable and if the demand with the costs of distraint and sale, is satisfied by the sale of a portion of the property, the order of distraint shall not be executed with respect to the remainder.

Postponement of sale. – If, on the property being put for sale, a fair price (in the estimating of the officer holding the sale) is not offered for it, and if the owner of the property, or a person authorized to act in his behalf, applies to have the sale postponed till the next day or (if a market is held at the place of sale) the next market day, the sale shall be postponed until that day and shall be then completed, whatever price may b offered for the property.

Payment of purchase money . – The price of every lot shall be paid at the time of sale, or as soon thereafter as the officer holding the sale direct, and in default of such payment the property shall be put up again and sold.

Certificate to be given to purchaser. – When the purchase money has been paid in full, the officer holding the sale shall give the purchaser a certificate describing the property purchased by him and the price paid.

Proceeds of sale how to be applied. –

1. (1) From the proceeds of every sale of distrained property under this chapter, the officer holding the shall pay the casts of the distraint and sale, calculated on a scale of charges prescribed by rules to be made, from time, by the state Government in this behalf.
2. (2) The remainder shall be applied to the discharge of the amount due for which the distress was made, with interest thereon up to the day of sale; and the surplus (it any) shall be paid to the person whose property has been sold.

("Certain persons may not purchase") Officers holding sales of property under this Chapter ad all persons employed by, or subordinate to such officers and all officers and members of the staff of registered societies are prohibited form purchasing either directly or indirectly, any property sold by such officers.

("Procedure where demand is paid before the sale")

1. (1) if at any time after a distraint has been made under this Chapter, and before the sale of the destrained property, the defaulter, or any person making a bonafide claim as the owner of the distrained property, where he is not the defaulter deposits with the Collector executing the order of distraint or in the hands of the distraining officer, the amount specified in the demand served under section 57-E, with all casts which may have been incurred after the service of the demand, the Collector, or officer, as the case may be, shall grant a receipt for the same, and the order of distraint shall not be executed.
2. (2) When the distraining officer receives the deposit, he shall forthwith pay it to the collector.
3. (3) After the expiration of one month from the date of a deposit being made under this section, the collector shall pay there from to the applicant for distrain the amount due to him, unless in the mean while the person making a bona fide claim as the owner of the property distrained has instituted a suit against the applicant contesting the legality of the distraint and claiming compensation is respect of the same.

57 Q. Distraint of property which is under attachment. – When any conflict arises between an order for distraint issued under this Chapter and an order issued by a Civil Court for the attachment or sale of the property, which is the subject of the distrait, the order for distrait shall prevail; but if the property is sold under that order, the surplus proceeds of the sale shall not be paid under section 57-N, to the owner of the property without the sanction of the Court to which the order of attachment of sale was issued.

57 R. Suit for condensation for wrongful distrait and appeals. – No appeal shall lie from any order passed by the Registrar or a Collector under the Chapter, but any person whose property is distained on an application is not permitted by that section, may institute a suit against the applicant for the recovery of compensation: Provided that, if such an order is passed by an Assistant Registrar or Deputy Registrar exercising the power of a Registrar, an appeal shall lie to the Registrar and his decision on such appeal shall be final.

57 S. Power to make rules. – The State Government may from time to time, make rules for regulation the procedure in all cases under the foregoing provisions of this Chapter.

57 T. Interpretation. – in the Chapter, unless there is anything repugnant in the subject or context-

1. (a) “Collector” includes an officer appointed by the State Government to discharge any of the functions of a Collector under this Chapter;
2. (b) “defaulter” means a person (including his legal representative if he is dead) from whom any such debt or outstanding demand as is referred to in section 57-A, is recoverable; and
3. (c) “holding” means any land used for agricultural or horticultural purposes.