Procedure when third party claims to be in lawful possession of tenure or holding

(1) If before the day fixed for the sale of any tenure or holding in pursuance of Section 208 a third party appears before the Deputy Commissioner and alleges that he and not the person against whom the decree has been obtained, was in lawful possession of, or had some interest in the tenure or holding when the decree was obtained. The Deputy Commissioner shall examine such party according to the law for the time being in force relating to the examination of witnesses, and if he sees sufficient reason for so doing and if such party deposits in Court or gives security for the amount of the decree the Deputy Commissioner shall stay the sale, and, shall after taking evidence adjudicate upon the claim : Provided that no such adjudication shall be made if the Deputy Commissioner considers that the claim was designedly or unnecessarily delayed : Provided also that no transfer of a tenure shall be recognised unless it has been registered in the office of the landlord or sufficient cause for non-registration is shown to the satisfaction of the Deputy Commissioner,- (1-A) (a) If the Deputy Commissioner gives judgement in favour of such third party, the amount of the decree shall be satisfied from the deposit or security aforesaid, and the Deputy Commissioner shall in his judgement set out the portion if any, of the said amount and of his costs in the proceedings which such third party is entitled to recover from each of the other persons having an interest in the tenure or holding, and such sum shall be deemed to be money (not being due or recoverable as an arrear of rent) payable under order of the Deputy Commissioner under this Act; (b) If the Deputy Commissioner gives judgement against such third party, the sale shall proceed, and such third party shall upon payment of the costs, if any, allowed against him, be entitled to the return of the deposit or cancellation of the security, as the case may be. (2) The party against whom judgement is given by the Deputy Commissioner under sub-section (1) may, at any time within one year from the date of the judgement, bring a suit in the Civil Court to establish his right and, if the sale has been held to have it set aside on payment by him of the amount of the decree.