Powers of Designated Court regarding attachment

(1) Upon receiving an application under Section 5, the Designated Court shall issue a notice to the Financial Establishment or any other person whose property has been attached by the Government under Section 4, along with a copy of the application and affidavit and evidence, if any, to show cause on a specified date as to why the attachment order should not be made absolute. (2) The Designated Court shall also issue such notice to all persons who have interest or claim over the property of the Financial Establishment or persons mentioned in sub-section (1), to appear on the date specified in the notice, and to object to the attachment if they wish, on the ground that they have an interest in the property or any part thereof. (3) Any person claiming an interest in the attached property or any part thereof, notwithstanding the fact that no notice was served upon them under this section, may file an objection in the Designated Court at any time before any order is passed under sub-section (4) or sub-section (6). (4) If no cause is shown or no objection is raised under sub-section (3), the Designated Court shall immediately pass an order making the attachment of the property absolute and issue directions, as necessary, for the recovery of assets and equitable distribution of the money recovered from the attached property among the depositors. (5) If cause is shown or objection is raised, the Designated Court shall begin proceedings for investigation. While doing so, the Designated Court shall follow the summary procedure as contemplated in Order 37 of the Code of Civil Procedure, 1908 in relation to the examination of parties and in all other matters, and shall exercise all the powers of the court in hearing a suit under the said Code, and the person raising the objection shall be required to produce evidence to show that they had an interest in the property attached on the date of attachment. (6) After the investigation under sub-section (5), the Designated Court shall pass an order making the attachment order under sub-section (1) of Section 4 absolute, or modifying it by releasing a part of the property from attachment, or cancelling the attachment order: Provided that the Designated Court shall not release from attachment any interest until it is satisfied that the Financial Establishment or person referred to in sub-section (1) has an interest in that property, and until it is satisfied that the value of the remaining amount or property under attachment is not less than the value required for repayment to the depositors of the Financial Establishment. (7) Where the application has been made by a person who has been duly appointed or specified by any other State Government under a similar act, the Designated Court shall exercise all its powers as if the application had been made under this Act and shall pass appropriate orders or instructions.