Attachment of property 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 6 THE HIMACHAL PRADESH PROTECTION OF INTERESTS OF DEPOSITORS (IN FINANCIAL STABLISHMENTS ACT, 1999 such Financial Establishment is required to repay to the depositors and where the Special Court is satisfied by affidavit or otherwise that there is a reasonable cause for believing 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 Special 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 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 7, the Special Court is satisfied that the transfer of the property to the said transferee was not in good faith and for consideration the Special Court shall order the attachment of so much of the said transferee's property as is in the opinion of the Special Court equivalent to the proper value of the property transferred.

6 THE HIMACHAL PRADESH PROTECTION OF INTERESTS OF DEPOSITORS (IN

FINANCIAL STABLISHMENTS ACT, 1999

such Financial Establishment is required to repay to the depositors and where the Special Court is satisfied by affidavit or otherwise that there is a reasonable cause for believing 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 Special 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 why so much of the transferee's property as is equivalent to the proper value of the property transferred should not be attached.

1. (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 7, the Special Court is satisfied that the transfer of the property to the said transferee was not in good faith and for consideration the Special Court shall order the attachment of so much of the said transferee's property as is in the opinion of the Special Court equivalent to the proper value of the property transferred.