Sale of goods destrained in special cases; Sale of property distrained or attached; application of proceeds of sale; Surplus, if any, how dealt with.

(1) When the property seized is subject to speedy and natural decay, or when the expense of keeping it in custody together with the amount to be levied is likely to exceed its value, the chief officer shall at once give notice to the person in whose possession the property was when distrained, to the effect that it will be sold at once; and shall sell it accordingly unless the amount named in the warrant be forthwith paid.

(2) If not sold at once under sub-section (1), the property distrained or attached or in the case of immovable property a sufficient portion thereof may, unless the warrant is suspended by the Chief officer or the sum due by the defaulter together with all costs incidental to the notice, warrant, and distress or attachment and detention of the property is paid, be, on the expiry of the time specified in the notice served by the officer executing the warrant, sold by public auction under the orders of the chief officer, and the proceeds or such part thereof as shall be requisite, shall be applied firstly in discharge of any sum due to the State Government in respect of such property and secondly in discharge of the sum due and of all such incidental costs as aforesaid. Where the sum due together with costs is paid by the defaulter as aforesaid, the attachment if any of immovable property shall be deemed to have been removed. Sales of immovable property under this sub-section shall be held in the manner laid down in the rules framed in that behalf.

(3) After sale of the immovable property by auction as aforesaid, the chief officer shall put the person declared to be the purchaser in possession of the same and shall grant him a certificate to the effect that he has purchased the property to which the certificate refers.

(4) It shall be lawful for the municipality to offer a nominal bid, in the case of any immovable property put up for auction provided the previous approval of the Collector is obtained to such bidding.

(5) The surplus, if any, shall be forthwith credited to the municipal fund, notice of such credit being given at the same time to the person in whose possession the property was at the time of distraint or attachment; if such person shall claim the surplus by written application to the chief officer within three years from the date of the notice given under this sub-section, the chief officer shall refund the surplus to such person. Any sum not claimed within three years from the date of such notice shall be the property of the municipality.