Amendment status not verified — confirm the current text below against the official source.
(1) Notwithstanding anything contained in any other law for the time being in force, – (i) Where upon complaints received from the depositors or otherwise, the Government is satisfied that any Financial Establishment has failed,— a. to return the deposit after maturity or on demand by the depositor; or b. to pay interest or other assured benefit; or c. to provide the service promise against such deposit; or (ii) where the Government has reason to believe that any Financial establishment is acting in a calculated manner detrimental to the interest of the depositors with an intention to defraud them and if the Government is satisfied that such Financial Establishment is not likely to return the deposits or make payment of interest or other benefits assured or to provide the services against which the deposit is received may, in order to protect the interest of the depositors of such Financial Establishments, after recording reasons in writing, issue an order by publishing it in the Official Gazette, attaching the money or other property believed to have been acquired by such Financial Establishment either in its own name or in the name of any other person from out of the deposits by the Financial Establishment, or if it transpires that such money or other property is not available for attachment or not sufficient for repayment of the deposits, such other property of the said Financial Establishment or the promoter, Director, partner or manager or member of the said Financial Establishment, as the Government may think fit. (2) On the publication of the order under sub-section (1) all the properties and the assets of the Financial Establishment and the persons mentioned therein shall forthwith vest in the Competent Authority appointed by the Government pending further order from the Designated Court. (3) The Collector of a District shall be competent to receive the complaints from his District under Sub Section (1) and shall forward the same together with his Attachment of Properties on default 7 report to the Government at the earliest and shall send a copy of the complaint also to the concerned Superintendent of Police in the District for investigation. (1) Government may while issuing the order under Sub-section (1) of section 4, appoint any of its officers not below the rank of a Deputy Collector as the competent Authority to exercise control over the money and the properties attached by the Government under section 4. (2) The Competent Authority shall have such other powers as may be prescribed for carrying out the purpose of this Act. (3) The Competent Authority shall apply within 15 (fifteen) days from the date of publication of the said order, to the Designated Court, accompanied by one or more affidavits stating the grounds on which the Government has issued the said order under section 4 and the amount of money or other property believed to have been acquired out of the deposits and the details, if any, of persons in whose name such property is believed to have invested or acquired or any other property attached under section 4 for such further orders as may be found necessary. (4) The Competent Authority, may also make an application to any Special Court or Designated Court or any other judicial forum established or constituted or entrusted with the powers by any other State Government for adjudicating any issue or subject matter pertaining to any money or property or assets of a Financial Establishment under any similar enactment in respect of money or property or assets belonging to or ostensibly belonging to a Financial Establishment or any person notified under this Act situated within the territorial jurisdiction of that Special Court or Designated Court or any judicial forum, as the case may be, for passing appropriate orders to give effect to the provisions of this Act. (1) For the purposes of this Act the Government may, with the concurrence of the Chief Justice of the Gauhati High Court, by notification, in the official Gazette, constitute one or more Designated Court to be presided over by a judicial officer not below the rank of a District Judge for such area or areas or for such case or class or group of cases, as may be specified in the notification. (2) No Court other than the Designated Court shall have jurisdiction in respect of any matter to which the provisions of this Act apply. (3) Any pending case in any other Court to which the provisions of this Act apply shall, on the date of publication of this Act, stand transferred to the Designated Court. (1) Upon receipt of an application under section 5, the Designated Court shall issue to the Financial Establishment or to any other person whose property is attached and vested in the Competent Authority by the Government under section 4, a notice accompanied by copies of the application and affidavits and of the evidence, if any, recorded calling upon the said Establishment and the said person to show cause on a date to be specified in the notice, why the order of attachment should not be made absolute. Competent 5. Authority Designated 6. Court Powers of Desig- 7. nated Court Regarding attachment 8 (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 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 that 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 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 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) or sub-section (6) ; (4) The Designated Court shall if no cause is shown and no objections are made on or before the specified date, under sub-section (3), forthwith pass an order making the order of attachment absolute, and issue such direction as may be necessary for disposal of the assets attached and for the equitable distribution among the depositors of the money realized from out of the property attached. (5) 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 summery procedure as contemplated under order 37 of the Civil Procedure Court, 1908 and exercise all the powers of a court in hearing a suit under the said code and any person making an objection shall be required to adduce evidence to show that on the date of attachment he had some interest in the property attached. (6) After investigation under sub-section (5), the Designated Court shall pass an order either making the order of attachment passed under sub-section (1) of section 4 absolute or varying it by releasing a portion of the property from attachment or canceling the order of attachment : 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 (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 repayment to the depositors of such Financial Establishment. (7) Where an application is made by any person duly authorized or constituted specified by any other State Government under similar enactment empowering him to exercise control over any money or property or assets attached by the State Government, the Designated Court shall exercise all its power, as if such an application was 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 Attachment of 8. Property of malafide transferees 9 or value which such Financial Establishment is required to repay to the depositor and where the Designated Court is satisfied by affidavit or otherwise, that there is reasonable cause for believing that 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 Designated Court may, by notice, require any transferee of such property (whether or not he received the property directly form 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) Where the said transferee does not appear and show cause on the specified date, or where after investigation in the manner provided in subsection (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 transferee’s property as in the opinion of the Designated Court equivalent to the proper value of the property transferred. Any Financial Establishment or person whose property has been or is about to be attached under this Act may, at any time, apply to the Designated Court for permission to give security in lieu 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. The Designated Court may, on the application of any person interested in any property attached and vested in the Competent Authority under this Act and after giving the Competent Authority an opportunity of being heard. make such order as the Designated Court considers just and reasonable for— (a) Providing from such of property attached and vested in the Competent Authority as the applicant claims and 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 3 : (b) Safeguarding so for as may be practicable the interest of any business affected by the attachment and in particular, the interest of any partners in such business or any other person connected with such business.