Assessment of assets and deposit liabilities

(1) Within sixty days from the date of appointment or within sixty days from the date of permission received from the Government under section 3 whichever is later the Competent Authority shall assess the deposit liabilities and the assets of the Financial Establishment and submit a report thereof to the Special Court. (2) The Competent Authority thereafter shall issue notice either individually or by means of effective media publication, inviting the claims by secured creditors, if any, and also the depositors of the Financial Establishments to submit their claims with proper proof to establish the same Explanation- for the purpose of this section,- (i) “Effective media publication” shall mean Publication in the public media, with State wide or multi State wide circulation as the case may be, including social media, and providing option of both online and offline submission of claims. (ii) for the purpose of this sections “Proper proof to establish claim” shall include,- (a) suitable proof of identity and right to payment; (b) suitable proof of security, deposit contract, bond or agreement and financial transactions if any; and (c) Judicial decree. (3) Every notice under sub section (2) sent to or deemed to have been effected to claimants shall state that if the statement or claim is not sent to the Competent Authority before the expiry of the period of one month from the date of notice, the claims shall not be treated as claim entitled to be paid under the provision of this Act. (4) Every notice sent to a secured creditor shall require him to value the security before the expiry of the period of one month from the date of the notice and such notice shall also state that if the statement of the claim together with the valuation of the security is not sent to the Competent Authority, the Competent Authority itself shall value the security and its valuation shall be binding on such secured creditors. Provided that, in respect of claims filed by secured creditors with respect to Unfunded Exposures, the valuation thereof after due assessment shall be admitted as contingent claims as and when, the Unfunded Exposures expire or no longer payable by the financial establishments, the amount thereof shall be reduced from such Unfunded Exposures Explanation- For the purpose of this sub-section “Unfunded Exposures” shall mean bank guarantees, letter of credit or other financial commitments made through a registered document where exposures do not involve any current outlay of funds and there is no immediate but only contingent obligation to disburse. (5) If the claimant fails to comply with the notice as per sub section (4), such security shall be valued by the Competent Authority to the best of its judgment. (6) In case of periodical payments like Rent, Lease Charges and other payments, a claimant may claim only for any amount due and unpaid up to a period of one month from the date of provisional attachment. In principal Act, in section 7,- (1) after sub-section (2), the following shall be inserted, namely,- “Explanation- for the purpose of this section,- (i) “Effective media publication” shall mean Publication in the public media, with State wide or multi State wide circulation as the case may be, including social media, and providing option of both online and offline submission of claims. (ii) for the purpose of this sections “Proper proof to establish claim” shall include,- (a) suitable proof of identity and right to payment; (b) suitable proof of security, deposit contract, bond or agreement and financial transactions if any; and (c) Judicial decree.” (2) after sub-section (4), the following shall be inserted, namely,- “Provided that, in respect of claims filed by secured creditors with respect to Unfunded Exposures, the valuation thereof after due assessment shall be admitted as contingent claims as and when, the Unfunded Exposures expire or no longer payable by the financial establishments, the amount thereof shall be reduced from such Unfunded Exposures” Explanation- For the purpose of this sub-section “Unfunded Exposures” shall mean bank guarantees, letter of credit or other financial commitments made through a registered document where exposures do not involve any current outlay of funds and there is no immediate but only contingent obligation to disburse.” (3) After sub-section (5), the following shall be inserted namely,- “(6) In case of periodical payments like Rent, Lease Charges and other payments, a claimant may claim only for any amount due and unpaid up to a period of one month from the date of provisional attachment”