Amendment status not verified — confirm the current text below against the official source.
Designated (1) For the purpose of this Act, the Government may, with the Court. concurrence of the Chief Justice of the Delhi High Court, by notification in the official Gazette, constitute one or~more Designated Courts in the Cadre of District and Sessions Judge including Additional District and Sessions Judge for such area or areas or for such cases oF group of cases, as may be specified in the notification. (2) No Court including the Court constiluted under the Presidency Towns Insolvency Act, 1909 (3 of 1909) and the Provincial Insolvency Act, 1920 (5 of 1920), other than the Designated Court shall have jurisdiction in respect of any matter to which the provisions of this Act is invoked. (3) Any pending case in any other court in respect of which the provisions of this Act is invoked, shall stand transferred to the Designated Courts from the date of notification issued under subsection (2) of section 4 of this Act. 11.Powers of (1) Upon receipt of an application under section 5, the Designated \ Designated Court Court shall issue to the financial establishment or to any other regarding person whose property is attached and vested in the Competent j ae attachment. Authority by the Government under section 4, a notice 16 a6 accompanied by the application and affidavits and of the evidence recorded, if any, calling upon the said establishment and the said person to show cause on oF before a date to be specified in the notice, why the order of attachment should not be made absolute. (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 all such persons to appear on the same date as specified in the notice and make objection if they so desire to the attachment of the property or any portion thereof, on the ground that they have an interest in such property or portion thereof. (@) ‘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 on or before the * specified date before an order is passed under sub-section (4) or sub-section (6). (4) The Designated Court shall if no cause is shown and no 7 (5) (6) objections are made on or before the specified date, under sub- section (1), forthwith p; an order making the order of attachment absolute, and issue such direction as may be necessary for realisation of the assets attached and for. the equitable distribution amongst the depositors of the money realised from and out of the property attached. If cause is shown or any objection is made as aforesaid, the Designated Court shall proceed to investigate 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 summary procedure as contemplated under the Code ‘of Civil Procedure, 1908(5 of 1908) and exercise all the powers of a Court in hearing a suit under the said Code. Any person making an objection shall be required to adduce evidence to show that at the date of the attachment he had some interest in the property attached. After investigation under sub-section (5), the Designated Court shall pass an order as carly as possible preferably within one year of the reference of the case to it, either making the order of attachment passed under sub-section (2) of section 4 absolute. or varying it by releasing « portion of the property from attachment or canceling the order of attachment: 18 12.Attachment of property of mala fide transferees. Provided that the Designated Court shall not release from attachment any interest which it is satisficd that the financial establishment or the person referred to in sub-section (1) has-in the property unless it is also satisficd that there will remain under attachment an amount or property of value not less than the. valie that is required for re-payment to the depositors of such financial establishment. (7) Where an application is made by any person duly authorized or constituted or specified by any other State Government or the Government of any Union territory under similar enactment empowering him to exercise control over any money or property or assets attached by that State Government or the Government of a Union territory, the Designated Court shall exercise all its powers, as if, such an application were made under this Act and pass appropriate order or direction on such application so as to give effect to the provisions of such enactment. (1) Where the assets available for attachment of a financial establishment or other person referred to in section 4 are found to be less than the amount or value which such Financial Establishment is required to repay to the depositors and where 19 { the Designated 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) any of the property otherwise than in good faith and for consideration, the Designated Court viv by notice, require any transferee 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. Where the said transferee does not appear and show cause on jon in the maimer the specified date, or where after inves provided in sub-section (5) of section 7, the Designated Court is satisfied that the transfer of the property to the said transferee was not in good faith and for consideration, the Designated Court shall order the attachment of so much of the said transferce's property as in the opinion of the Designated Court is equivalent to the proper value of the property transferred. 13.Seeurity in lieu Any financial establishment or person whose property has been or a8 of attachment. is about to be attached under this Act may, al any time, apply to the 20, Designated Court for permission to give security in lict of such attachment and where the security offered and given is, in the opinion of the Designated Court, satisfactory and sufficient, it may cancel the order of attachment or, as the case may be refrain from passing the order of attachment 14, The Designated Court may, on the application of any person Administration of © interested in any properly attached and vested in the Competent property Authority under this Act, and after giving the Competent Authority | attached. an opportunity of being heard, make such orders as the Designated i Court considers just and reasonable for -- 2) providing fom such of the property attached and vested in the Competent Authority as the applicant claims an interest in such sums as may be reasonably necessary: for the maintenance of the applicant and of his family, and for | expenses connected with the defence of the applicant where criminal proceedings have been instituted against him in the Designated Court under section 33 may be practicable the interest of (b) safeguarding so far any business affected by the attachment and in particular, } } the interest of any partners in such business; 1i ! (¢) liabilities accruing to a financial establishment oF person emanating out of proceedings before a Designated Court, 21 15.Appeal. 16.Special Public Prosecutor.