Any pending case in any other Courtto which the provisions of the Act apply shall stand transferred to the Special Court.

Powers of Special Court regarding attachment (Sale, realization and distribution) (1) Upon receipt of an application under Section4, the Special Court shall issue to the Financial Establishment or to any other person whose property is attach by the Government under Section 3, and notice accompanied by the application and affidavits and of the evidence, if any recorded, calling upon him to show cause on a date to be specified in the notice why the order of attachment should not be made absolute and the property so attached be sold in public auction. (2) The Special Court shall also issue such notice, to all other persons, represented to it as having on being likely to claim, any interest ortitle in the property of the Financial Establishment orthe person to whom the notice is issued calling upon such person to appear on the same date as that specified in the notice and make objection if he so desirestothe attachment of the property or any portion thereof on the ground that he has an interest in such property or portion thereof. (3) Any person claiming an interest in the property attached or any portion thereof may, notwithstanding that no notice has been issued upon him under this section, make an objection as aforesaid to the Special Court at any time before an order is passed under sub-section (4) or sub-section (6).

(4) If no cause is shown and no objection are made on or before the specified date, the Special Court shall forthwith pass an order making the ad-interim order of attachment absolute and direct the Competent Authority to sell the property so attached by public auction and realize the sale proceeds. (5) If a case is shown or any objection is made as aforesaid the Special Court shall proceed to investigate the same, and in doing so, as regards the examination of the parties and in all other respects, the Special Court shall, subject to the provisions of this Act, follow the procedure and exercise all the powers of a Court in hearing a suit under the Code of Civil procedure,1908 (Central Act V of 1908) and any person making an objection shall be required to adduce evidence to show that at the date of attachment he had some interest in the property attached.

1. (6) After investigation under sub-section (5), the Special Court shall pass an order, within a period of one hundred and eighty days from the date of receipt of an application under sub-section (3) of Section 4, either making the ad-interim order of attachment absolute or varying it by releasing a portion of the property from attachment or cancelling the ad-interim order of attachment and then direct the Competent Authority to sell the property so attached by public auction and realize the sale proceeds: Provided that the Special Court shall not release from attachment any interest which it is satisfied that the Financial Establishment or the person referred to in sub-section (1) has in the property unless it is also satisfied that there will remain under attachment an amount or property of value not less than the value that is required for re-payment to the depositors of such Financial Established. (7) The Special Court shall on an application by the Competent Authority, pass such order or issue such direction as may be necessary for the equitable distribution amongthe depositors, of the money attached or realized out of the sale. 8. Attachment of property of mala fide transferees: - (1) When the assets available for attachment of a Financial Establishment or the person referred to in Section 3 are found to be less than the amount or value which such Financial Establishment is required to repay to the depositors and when the Special Court is satisfied by affidavit or otherwise that there is 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 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. (2) Where the said transferee does not appear and show cause on the subject 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 in the opinion of the Special Court equivalent to the proper value of the property transferred.