Vidhi Codex

section 9

Powers of Designated Court regarding attachment, sale etc

The Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011
General201119 sections
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Statutory text
  1. (1) Upon receipt of an application under section 4, the Designated Court shall issue to the Financial Establishment or to any other person whose property is attached by the Government under section 3, a notice accompanied by the application and affidavits and of the evidence, if any, recorded, calling upon the said Establishment or the said person to show cause on a date to be specified in the notice as to why the order of attachment should not be made absolute and the properties so attached be sold in public auction and in so doing, as regards the issue of notice, the Designated Court shall follow the procedure and exercise all the powers of a court in issue and service of summons under the Code of Civil Procedure, 1908.
  2. (2) The Designated Court shall also issue such notice to all other persons represented to it as having or being likely to claim any interest or title in the property of the Financial Establishment or the person to whom the notice is issued under sub-section (1), calling upon such person to appear on the same date as that specified in the notice and make objection if he so desires to the attachment of the property or any portion thereof on the ground that he has an interest in such property or portion thereof and in so doing, as regards the issue of notice, the Designated Court shall follow the procedure and exercise all the powers of a court in issue and service of summons under the Code of Civil Procedure, 1908.
  3. (3) Any person claiming an interest in the property attached or any portion thereof may, notwithstanding that no notice has been served upon him under this section, make an objection as aforesaid to the Designated Court at any time before an order is passed under sub-section
  4. (4) or sub-section (6).
  5. (4) If no cause is shown and no objections are made on or before the specified date, the Designated Court shall forthwith pass an order making the ad-interm order of attachment absolute and direct the Competent Authority to sell the property so attached by public auction and realize the sale proceeds.
  6. (5) If cause is shown or any objection is made as aforesaid the Designated Court shall proceed to inquire the same and in so doing, as regards the examination of the parties and in all other respects, the Designated Court shall, subject to the provisions of this Act, follow the procedure and exrecise all the powers of a court in hearing a suit under the Code of Civil Procedure, 1908 and any person making an objection shall be required to adduce evidence to show that on the date of the attachment he had some interest in the property attached.
  7. (6) After inquiry under sub-section (5), the Designated 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
  8. (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 Designated Court shall not release from attachment any interest, which it is satisfied that the Financial Establishment or the person referred to in sub-section
  9. (1) has in the property, unless it is also satisfied that there will remain under attachment an amount or property of a value not less than the value that is required for repayment to the depositors of such Financial Establishment.
  10. (7) Subject to the provisions of sub-section (8), the Designated Court shall, on an application by the Competent Authority, pass such order or issue such direction as may be necessary for the equitable distribution among the depositors of the money attached or realized out of the sale. Provided that where the money realized is not sufficient to make equitable distribution among the depositors, the Designated Court may pass order for payment to the small depositors in preference.
  11. (8) If the Government has paid any amount to any small depositor from out of the Corpus Fund created, if any, for the purpose of making payment to the said small depositors due to delay in equitable distribution, of the money attached or realised out of the sale proceeds among the depositors, under sub-section(7), the Designated Court shall, on an application by the Competent Authority, pass such order to recover the amount paid from the said Corpus Fund from out of the said sale proceeds at the first instance before making such equitable distribution. Explanation.—For the purpose of this section the expression “small depositor” means the depositor whose total deposit in a Financial Establishment is not more than ten thousand rupees and includes the legal heirs of such depositor in case of his death.

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