(1) Upon receipt of an application under section 6, the designated court shall issue to the financial establishment or to any other person whose property is attached and vested in the competent authority under section 4, a notice accompanied by the application, affidavits and other evidence, if any, recorded, calling upon the said establishment or the person to show cause on or before a date to be specified in the notice, as to why the order of the 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 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 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 objection is made on or before the specified date under sub-section (1), forthwith pass 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 so attached.
2014: Hr. Act 32] PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT 203
(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 respect, the designated court shall, subject to the provisions of this Act, follow the summary procedure as contemplated under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), and exercise all the powers of a civil court in hearing a suit. 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 so attached.
(6) After investigation under sub-section (5), the designated court shall pass an order, as early as possible, preferable within one year of the reference of the case to it, either making the order of attachment passed under sub-section (1) of section 4 absolute or varying it by realising a portion of the property from attachment or cancelling the order of attachment:
Provided that the designated court shall not release from attachment any interest which the financial establishment or the person referred to in sub-section (1) has in the property, unless it is satisfied that there shall 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 the designated court passes an order under sub-section (6), making the order of attachment absolute or varying the order of attachment by releasing a portion of the property from attachment, it may issue such direction as may be necessary for realization of the assets attached and for the equitable distribution amongst the depositors of the money realised from and out of the assets so attached.