Attachment of property of malafide transferees

(1) Where the assets available for attachment of a financial establishment or other person referred to in section 4 are found to be less than the amount or value which such financial establishment is required to repay to the depositors and where the designated court is satisfied by affidavit or otherwise, that there is reasonable cause for believing that the said financial establishment has transferred (whether before or after the commencement of this Act) any of the property otherwise than in good faith and for consideration, the designated court may, by notice, require any transferee of such property (whether or not he received the property directly from the said financial establishment) to appear on a date to be specified in the notice and show cause as to why so much of the transferee’s property as is equivalent to the proper value of the property 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, the designated court is satisfied that the transfer of the property to the said transferee was not in good faith and for consideration, the designated court shall order the attachment of so much of the said transferee’s property as is in the opinion of the designated court is equivalent to the proper value of the property transferred.