(!) In the case of an application received under sub-section (3) of section 4, the. Special Court shall issue to the f'mancial establishment or to any other person whose property is attached by the Government urrder section 3, a notice accompanied by copy of the application, affidavit of the evidence, if any, recorded, calling upon him to appear on a date to be specified in the notice and to show cause, if any why the order of attachment should not be made absolute.
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(2) The Special Court shall also issue such notice as stated in sub-section ( 1 ), to all other persons represented to it as having or being likely to claim, any right, interest or title in the property of the financial establishment attached under section 3 or to the property of the person to whom the notke is issued, calling upon such person to appear on the same date as that specified in the notice and make objection, if he so desires, against making the ad-interim order of attachment of the property or any portion thereof absolute, on the ground that he has an interest in such property or portion thereof.
(3) Any person making claim or 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 specified in sub-section (2) to the Special Court and before an order is passed under sub-section (4) or sub-section (6).
(4) If no cause i~ shown or no objection is made by any person on or before the specified date, the Special Court shall forthwith pa~s an order making the ad-interim order of attachment by the Government under section 3 absolute.
(5) If cause is shown or objection is made by any person under sub-sections (2) and (3), the Special Court shall proceed to investigate the same, and in so doing, as regards the examinations 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 while trying a suit under the Code of Civil Procedure, 1908 (Central Act V of 1908) and may require any person making an objection to adduce evidence to show that on the date of attachment under section 3, he had right or interest in the property attached.
(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 making the ad-interim order of attachment absolute or varying it by releasing a portion of the property from attachment or canceling the ad-interim order of attachment:
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Provided that the Special Court shall not release from· attachment of the said property unless it is satisfied that the value or amount of the property attached is sufficient to repay the amount to the depositors of Financial Establishment, eventhc_>.ugh ·it is satisfied th~t the Financial Establishment or the person referred to in sub-section ( 1) has any claim or interest in the property.
(7) Where the ad-interim order of attachment is made absolute, the competent authority shall make an application before the Special Court to sell the properties attached, by public auction and to realise the sale proceeds and the Special Court shall issue necessary orders upon it.
(8) · 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 among the depositors, of the money realised by attachment or by the sale under sub-section (7).
9. Attachment of property of mala fide transferees. (!) Where the -.:alue of the assets available for attachment of a financial establishment or any person referred to in section 3 are found to be less . than the amount or value which is required to be repaid by such fmancial establishment to the depositors and where the Special Court is satisfied by affidavit or otherwise that there is reasonable cause for believing that the said fmancial establishment or person has transferred, whether before the commencement of this Act or after that, any of the property otherwise than in good faith and for consideration, the Special Court may, by notice, require any establishment to which or person to whom such property, was transferred whether the property was received directly or not from the financial establishment or person, to appear on a date to be specified in the notice and show cause why so much of the property of the establishment or of the person, as is equivalent to the market value of the property got transferred, should not be attached.
(2) Where the establishment or person who got transfer as stated in sub-section (I) does not appear and show cause on the specified date, or where after the investigation complying the procedure provided in sub-section (5) of section 8, the Special Court is satisfied that the transfer of the property to the establishment or person was not in good faith and 8 f~r consideration, the Special Court shall order the attachment of so much of the property of the establishment or person who received the property, as in the opinion of the Special Court equivalent to the market value of the property transferred.