37. (1) Investment of fund-Besides the manner provided in section 44, a Co-operative society may invest or deposit its funds or any portion thereof-
(a) in many bonds, certificates or loans issued by the government or the Central Government;
(b) in debentures floated by a Co-operative Society.
(c) With the previous sanction of the Registrar, in the purchase or lease of land or building or in the acquisition, construction or renewal of any building that may be necessary to conduct its business.
(2). The amount of the funds invested under clause (c) of sub-rule (1) shall be recouped on such terms as may be determined in each case by the Registrar.
(3) The provisions of clause (c) of sub-clause (1) shall not apply
(a) to immovable property purchase-
(h) by a Co-operative Society at a sale help in execution of a decree obtained by it, for the recovery of any sum due to it; or
(ii) by a financing bank at a sale held in execution of a decree obtained by a Co-operative financed by it, for the recovery or any sum due to such Co-op. Society or at a sale brought about by the liquidator of such Co-op. Society; or
(b) to the purchase or lease for lends or purchase construction or renovation of buildings by a Co-operative Society whose objects according to its bye-laws include such purchase, lease, construction or renovation.
38. Writing off bad debts and other sums due– No Co-operative society shall write off, in whole or in part, any2 debt or other sums due to it without the previous sanction of the Registrar.
39. Maximum credit limit of members: The bye-laws of a Co-operative society may lay down the limit beyond which a Co-operative society may not advance loan to individual members without the Registrar’s prior consent.
40. 1Nature and extent of securities for loan. - The Registrar may, in furtherance of the objective of a co-operative society or a class of co-operative societies regulate the lending of money of such co-operative societies, by general or special order, including;
(a) the manner in which the application for loan may be given and documents which may be attached therewith.
(b) the mode of dealing with the application for loans;
(c) the ratio between the loan to be granted and the shares to be held by the loanees;
(d) the nature and extent of security to be demanded by a Co-op. Society in respect of loans advanced by it;
(e) the purpose for which the loan may bee given;
(f) the ratio in which the loan may be given cash and kind;
(g) the installment in which the loan may be given;
(h) the mode of disbursement of loan: whether in cash directly to the loanee or through specified suppliers or specified articles for which the loan is sanctioned;
(i) the mode of supervision over the proper utilization of loan;
(j) the mode of repayment of loans; and
(k) generally to ensure the proper flow of credit and its ultimate utilization and recovery in conformity with the objectives of the Co-op. Society concerned.
41. Restriction on grant of loans by a Co-operative Society against its own shares- No Co-operative Society shall grant loans or make advances against the security of its own shares.
42. (1) Declaration under section 32- A declaration under clause (i) or 2(ii) of section 32 shall be made in the form given in appendix ‘D’.
(2) A register of such declarations to be kept by the Co-operative Society shall be in the form given in appendix ‘E’.
43. Restriction on borrowing by Co-operative Society:-(1) Subject to the provisions of sub-rule (2) a Co-operative Society Shall not receive deposits and loans whether from members or non-members which exceed the limit fixed from time to time in a General meeting subject to the approval of the Registrar who may at any time reduce it.
(2) A Co-operative Society which accepts deposits and loans from members only and has no liability to any person other than the members, may receive such deposits and loans in excess amount in deposited in a Co-operative Bank to which it is affiliated to reserved in Government Securities specified in Section 20 of the Indian Trusts Act, 1882; provided that the amount so deposited or invested, or any part thereof, is not withdrawn or otherwise utilised except for the payment of the deposits accepted in excess of the aforesaid limit.
(3) No Co-operative Society shall accept loans or deposits whether from members or non members at a rate of interest which exceeds by more than three percent the interest paid in similar types of deposits or loans by the Central Co-operative Bank within whose area of operation the Co-op. Society id situated except that the Registrar may class of Co-op. Societies or individual Co-op. Society from the operation of this rule.
44. Maintenance of fluid resources – Every co-operative Society accepting deposits and granting cash credit shall maintain fluid resources in such form and according to such standards as may be fixed by the Registrar from time to time, by general of special order.
45. Powers of Registrar to give directions – (1) The registrar may, from time to time, give directions consistent with the provisions of the Act as the considers necessary for the beneficial and efficient functioning of any co-operative society or class of co-operative societies.
(2) If any question arises whether any directions given under sub-rule (1) are necessary for the beneficial and efficient functioning of the co-operative society or class of co-operative societies, as the case may be, the concerned co-operative society or class of co-operative societies may refer such question to the Government whose decision there on shall be final.
46. Appointment of relatives to any office – Save in a producers co-operative society no relative of any member of the committee or of any other officer or a co-operative society shall be appointed to any office in the co-operative society, except with the previous sanction of the registrar.
AUDIT
AND ACCOUNT
47. Auditing of Accounts- The accounts of a co-operative society shall be audited in such manner as the Registrar may specify from time to time.
48. Maintenance of account book and other record – A co-operative society or class of co-operative societies shall maintain the account books and other records in such form and manner as may be directed by the Registrar by a general or special order from time to time.
49. Preparation of balance-sheet and other accounts-(1) A co-operative society shall prepare a balance sheet, profit and loss account, trading account and such other statements relating to accounts as may be specified, from time to time, by the Registrar, as soon as particable after the close of the co-operative year in such form, as may be laid down by the Registrar.
(2) If the Registrar so directs a copy each of the statements referred to in sub-rule (1) shall be supplied by a co-operative society to the registrar by such date as he may specify.
50. AUDIT FEES: (1) Every co-operative society shall pay to the Government a fee for the audit of its accounts for each co-operative year in accordance with the scale fixed by the registrar with the previous approval of the Government in respect of the class of co-operative societies to which it being.
(2) The registrar may, subject to such conditions as may be laid down by the Government, remit the whole or any part of the class payable under sub-rule (1) by a co-operative society or a class of co-operative societies for any year other specified period.
SETTLEMENT IF DISPUTES
51. Reference of Disputes – When a party to the dispute referred to in sub-section (1) of Section 55 desires to have that dispute determined in accordance with the provisions of the said section, the party shall apply to the Registrar in the form given in Appendix ‘F’
52. Arbitration Fee – (1) The Registrar shall have power to require the person referring a dispute under sub-section (i) of section 55 to deposit in advance the fee, if any, to be specified 2by the Registrar keeping in view the nature of the case for deciding the dispute.
(2). The Registrar may, in such cases as he thinks fit; order the payment of fee to the arbitrator.
(3). No fee shall be payable to an arbitrator till the dispute referred to him is 3 decided finally.
(4). The Registrar, may, in his discretion, remit the whole or any part of the fee collected under sub-rule (1).
53. Communication of date, time and place of hearing-In an arbitration proceeding, the Registrar or the arbitrator, as the case may be, shall communication the date, time and place of hearing the dispute to all the parties concerned.
54. Power to appoint guardian for minors etc:- The registrar or the arbitrator, as the case may be, shall have power to appoint or remove a guardian for the party to the dispute who is a minor or who, by reasons of unsoundness of mind or mental infirmity, is incapable of protecting his interest.
55. Heading of Disputes-the registrar or the arbitrator, as the case may be, shall hear the parties and witnesses 4 who attend and record the evidence. On the basis of such evidence and after consideration of any documentary evidence that may be produced by either party, he shall give and good conscience. The decision or award shall be reduced to writing, 5pronounced to the parties and filed in the office of the registrar. In the absence of any party duly summoned to attennd6 and served, the dispute may be decided expert.
56. Cost of arbitration – The arbitrator or the Registrar, as the case may be, shall have the power to order the expenses of determining a dispute or the costs of either party to be borne by such party or parties to the dispute as he may think fit.
57. Maintenance of records of arbitration- 1The record of arbitration proceeding shall be kept in such place and in such manner as the Registrar may direct.
(2) A copy of the decision or award shall , on application, be given to a party by the Registrar as soon as soon be possible but not later than 15 days on payment of the fees specified in rule78 of these rules.
WINDING
UP AND CENCELLATION
58. Procedures to be followed by liquidators:-(1) The liquidator shall, as soon as the order of winding up of the co-operative society takes effect, publish by such means as he may think proper, a notice requiring all claims against the co-operative society, the winding up of which has been ordered to be submitted to him within one month of the publication of the notice, All liabilities recorded in the account books of a co-operative society shall be deemed ipso facto to have been duly submitted to him under this subrule.
(2) The liquidator shall, be after setting the assets and liabilities of the co-operative society as they stood on the date on which the order for winding up is made proceed next to determine the contribution to be made by each of its members, past members or by the estates or nominees, heirs or legal representatives of deceased member or by any officers or former officers to the assets of the C0-op.Society under clause (b) and (e) of sub section (2) of section 59. Should necessity arise, he may, make a subsidiary order regarding such contributions and such order shall be enforceable in the same manner as the original order.
(3) The liquidator may, at time, call a meeting of the members or of the creditors’ or a joint meeting of the members and creditors and such meeting shall be called, held and conducted at such time and place and in such manner as the liquidator may deem fit.
59. Approval by Registrar or order of liquidator:- An order passed by the liquador under clause (b) of sub- section (2) of section 59 shall be submitted by him to the Registrar for approval. The registrar may modify such order or refer it back to the liquidator for further enquiry or action
60. Submission of quarterly report by liquidator- The liquidator shall submit to Registrar a quarterly report in such from as the Registrar may specify showing the progress made in the liquidation of the co-operative society.
61. Deposit of funds by liquidator-All funds in charge of the liquidator shall be deposited with such institution or person as the Registrar may approve.
62. Expenses incurred by liquidator-All expenses incurred in connection with the winding up of the co-operative society shall be subject to the approval of the Registrar.
63. Distribution of assets-The liquidator shall distribution the realised assets in such manner and in such priority as the Registrar may direct.
64. Remuneration to liquidators-Th remuneration fixed under section 58 (1) shall be included in the cost of liquidation which shall be payable out of the assets of the co-operative society in priority to all other claims
65. Disposal of surplus assets-After discharging the liabilities of the co-operative society and repayment of share-capital, the liquidator may utilise the assets of the co-operative society in priority to all other claims.
(a) deposit the amount in the central co-operative bank of the area which the Co-operative society in question operative until a new co-operative society with similar area of operation is registered when it shall be credited to reserve fund of the new co-operative society.
(b) Any purpose connected with the development of co-operative movement, subject to the approval of the Registrar.
(c) An object of public utility selected with due regard to the wishes of the members and approved by the Registrar.
66. Liability due to claimants whose where about not known-If any liability cannot be discharged by the liquidator owing to the where abouts of the claimant not being known or for any other cause, the amount covered by such undischrged liability may be deposited in the Central co-operative bank having jurisdiction over the area deposited in the central co-operative society was functioning and shall remain at the disposal of the claimants for a period of three years, after which the undrawn amount, if any, may be transferred to the state co-operative union (now puncofed) for credit to the co-operative education fund..
67. Removal of Liquidators- a liquidator may, at anytime, be removed by the registrar and he shall on such removal hand over all the property and documents relating to the co-op. Society under liquidation to such person as the registrar may direct.
68. Maintenance of accounts by liquidators- the liquidators shall keep such book and accounts as may be laid down by the registrar from time to time. The registrar may at any time cause such books and accounts to be audited.
69. Final report by liquidator- The liquidator shall, after meeting the liabilities of the co-op. Society, submit a final report to the registrar in such forms as may, from time to time, be specified ‘by him.
70. Disposal of record - all the books and records of a co-op. Society whose registration has been cancelled may be destroyed under the orders of the registrar after the expiry of a period of three years from the date of cancellation.
EXECUTION OF AWARDS, DECREES, ORDERS AND
DECISIONS
71. Manner of service of notice- the notice under the proviso to section 62 shall indicate the substance of the demand or debt due to the co-operative society and shall be served in the manner laid down for the service of summons in sub-rule(3) of rule 74. No order under section 52 shall be made until a period of thirty days has expired the date of service of the notice.
72. Procedure in execution of award etc. (1)- any decree holder requiring the provisions of clause (b) of section 63 to be applied shall apply to the recovery officer within whose jurisdiction the defaulter resides or the property of the defaulter.
(2) every such application shall be made in the form specified by the registrar and shall be signed by the decree-holder. The decree holder may indicate whether he wishes to proceed against the immovable property mortgaged to the decree-holder or other immovable property or to secure the attachment of movable property.
(3) On receipt of such application the recovery officer shall verity the correctness and genuineness of the particulars set forth in the application with the records, if any in the office of the registrar and prepare a demand notice in writing in duplicate in the form specified by the registrar, setting forth the name and address of the defaulter and the amount due and forward it to a sale officer unless the decree-holder has expressed a desire that proceedings should be taken in particular order as laid down in sub-rule (2) execution shall ordinarily be taken in the following manner:-
(i) Movable property of the defaulter shall be first proceeded against, but this shall not preclude the immovable property being proceeded against simultaneously in case of necessity.
(ii) if there is no movable property, or if sale-proceeds of the movable property or properties attached and sold are insufficient to meet in full the demand of the decree-holder, the immovable property mortgaged to the decree-holder or other immovable property belonging to the defaulter may be proceeded against.
(5) In the seizure and sale of movable property, the following procedure shall be observed:-
(a) The sale Officer shall, after giving previous notice to the decree-holder, proceed to the village or locality where the defaulter resides or the property to be distrained is situated and serve a demand notice to the defaulter if he is present. If the amount due together with the expenses is not at once paid, the sale officer shall make the distress and shall immediately deliver to the defaulter a list or inventory of the property distraind and an intimation of place and day and hour at which the distrained property will be brought to sale if the amount due are not previously discharged. If the defaulter is absent , the sale officer shall serve the demand notice on some adult member of his family, or in his authorised agent or when such service cannot be affected, shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of the property attached on the usual place of residence of the defaulter, endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale.
(b) After the distress is made, the sale officer may arrange for the custody of the property attached with the decree holder or otherwise. If the sale officer requires the decree-holder to undertake the custody of the property he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the decree-holder. If the attached property is livestock, the decree holder shall be responsible foe providing the necessary food thereof. The sale officer may, at the instance of the defaulter or of any person claiming and interested in such property leave it in the village or place where it was attached in the charge of such defaulter or person, if he enters into a bond in the form specified by the Registrar with one or more sufficient sureties for the production of the property when called for.
c) The distress shall be made after sunrise and before sunset and not at any other time.
d) The distress levied shall not be excessive that is to say, the property distrained shall be as nearly as possible proportionate to the sum due ‘from the defaulter together with interest and all expenses incidental to the distraind detention and sale.
e) If crops or ungathered products of the land belonging to a defaulter are attached, the sale officer may cause them to be sold when fit for reaping or gathering, or at his option may cause them to be reaped or gathered in due season and stored in proper place until sold. In the letter case the expenses of reaping of gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or form the proceeds of the sale in the event of its being sold.
f) The sale officer shall not work the bullocks or cattle or make use of goods or effects distrained and he shall provide the necessary food for the cattle or livestock, the expenses incurred shall be defrayed by the owner upon his redeeming the property or form the proceeds of the sale in the event of its being sold.
g) It shall be lawful for the sale officer to force open any stable, cow house, granary, godown, out-house. Or other building and he may also enter any dwelling house, the outer-door of which may be open and may break upon the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged herein. Provided always that it shall not be lawful for the officer to break open or enter apartment in such dwelling house appropriate for the zenana or residence of women except as hereinafter provided.
h) Where the sale officer may have reason to suppose that the property of a defaulter id lodged within a dwelling house the outer door of which may be shut or within any apartments appropriated to women, which by custom or usage are considered private, the sale officer shall represent the fact to the officer incharge of the nearest police station. On such representation, the officer incharge of the said station shall send a police officer to the spot in the presence of whom the sale officer may, force open the other door of such dwelling house in like manner as he may break open the door of any room within the house except the zenana. The sale officer may, also in the presence of a police officer after due notice is given for the removal of women within a zenana and after furnishing means for their removal in a suitable manner if they be women of rank, who according to the custom or usage cannot appear in public, enter the zenana apartments for the purpose of distraining the defaulter’s property, if any deposited therein, but such property, if found, shall be immediately removed from such apartments, after which they shall be left free to the former occupants.
i) The sale officer shall on the day previous to and on the day of sale cause proclamation of the time and place of the intended sale to be made by beat of drum in the village or locality in which the defaulter resides and in such other place or places as the officer may consider necessary to give due publicity to the sale. No sale shall take place until after the expiration of the period of fifteen days from the date on which the sale notice has been served or affixed in the manner prescribed in clause (a) provided that where the property seized is subject to speedy and natural decay or where the expenses of keeping it in custody is likely to be exceed its value, the sale officer may sell it at any time before the expiry of the said period of fifteen days unless the amount due is sooner paid.
j) At the appointed time the property shall be put up in one or more lots, as the sale officer may consider advisable and shall be disposed of to the highest bidder;
Provided that it shall be open to the sale officer to decline to accept the highest bid where the price offered appears to be unduly low or for other reasons 2to be recorded in writing. Where the property is sold for more than the amount due, the excess amount, After deducting the interest and the expenses of process and the other charges, shall be paid to the defaulter;
Provided further, that the Recovery officer or the sale officer may, in his discretion, adjourn the sale to a specified day and hour recording his reasons for such adjournment. Where a sale is so adjourned for a longer period than seven days, a fresh proclamation under clause (i) shall be made unless the judgement debtor consents to waive it.
i) The property shall be paid for in cash at the sale or as soon there after as the officer holding the sale shall appoint and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full. Where the purchaser fail in the payment of purchase money, the property shall be resold.
ii) Where it is proved to the satisfaction of any civil court of competent jurisdiction that any property which has been distrained under these rules has been forcibly or clandestinely removed by any person, the court may under forthwith such property to be restored to the sale officer.
iii) Where prior to the day fixed for sale, the defaulter or any person acting on his behalf or any person claiming any interest in the property attached, pays the full amount due including interest, batta and other costs incurred in attaching the property, the sale officer shall cancel the order of attachment and release the property forthwith.
iv) The movable properties mentioned as exempt from attachment in the proviso to section 60 of the code of civil procedure, 1908 (5 of 1908) shall not be liable to attachment or sale under these rules.
(6) Where the movable property to be attached is the salary or allowance or wages of a public officer or of servant of a local authority or a firm or a company or any other institution the Recovery officer may on receiving a report from the sale officer, order that the amount shall, subject to the provisions of section 60 of Code of civil procedure, 1908 (5 of 1908) be withheld from such salary or allowances or wages either in one payment or by monthly installments as the said Recovery officer may direct and upon notice of the order the officer or other person whose duty it is to disburse such salary or allowances or wages shall withhold and remit to the sale officer the amount due under the order or the monthly installment , as the case may be.
(7) (i) Where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter, prohibiting him from transferring the share or interest or charging it in any way.
(ii) Where the property to be attached is a negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the office of the Recovery Officer ordering the attachment to be held subject to his further orders.
(iii) Where the property to the attached is in the custody of any court or public officer, the attached shall be made by a notice to such court or officer requesting that such property and any interest or dividend becoming payable thereon may be held subject to the further orders of the Recovery Officer issuing the notice:-
Provided that where such property is in the custody of a court or Recovery Officer of another district, any question of title or priority arising between the decree holder and any other person not being the defaulter, claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be determined by such court or Recovery Officer.
(8) (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made by the order of the Registrar if the decree sought attached was passed by the registrar under section 56 or by an arbitrator.
(ii) Where the property to be attached is a decree other than a decree of the nature referred to in clause (i), the attachment shall be made by the issue of a notice by Recovery Officer to the holder of such decree, prohibiting him from transferring or charging the same in any way.
(iii) The holder of decree attached under this sub-rule shall give the Recovery Officer executing the decree such information and aid as may reasonably be required.
(iv) On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer making an order of attachment under this sub-rule shall give notice of such order the judgement debtor bound by the decree attached, and no payment or adjustment of the attached decree made by the judgement debtor in contravention of such order after receipt of notice thereof, either through the said Recovery Office or otherwise, shall be recognized so long as attachment remains in force.
(2) Where the movable property to be attached is:-
(a) a debt due to the defaulter in question;
(b) a share in the capital of a corporation or a deposit invested therein ;or
(c) other movable property not in the possession of the defaulter except property deposited in or in the custody of any civil court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting:-
(i) in case of a debt, the creditor from recovering the debt and the debtor from making payment thereof;
(ii) in the case of a share or deposit the person in whose name the share or the deposit may be standing, from transferring the share or the deposit or receiving interest thereon ; and
(iii) in the case of any other movable property except aforesaid the person in possession of it from giving it over to the defaulter.
A copy of such order shall be sent in the case of the debt to the debtor, and in the case of the share or the deposit to the proper officer of the corporation and in the case of the other movable property except as aforesaid to the person in possession of such property, As soon as the debt referred to in clause (a) or the deposit referred to in clause (b) above matures, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not withdrawal, the said recovery officer shall arrange for its sale through a broker. Where the share is withdrawal, its value shall be paid to said Recovery Officer or to the party referred to in clause (c), the person concerned shall place it in the hands of the said Recovery Officer as it becomes deliverable to the defaulter.
(10) Immovable
property shall not be sold in execution of a decree unless such property has
been previously attached,
Provided that where the decree has been
obtained on the basis of a mortgage of such property, it shall not be necessary
to attach it.
(11) In
the attachment and sale without attachment of immovable property the following
procedure shall be observed;
(a) The application presented under sub-rule (3) shall contain a description of the immovable property to be proceeded against, sufficient for its identification on and in case such property can be identified by boundaries or numbers in a record of settlement or survey. The specification of such boundaries or the number in a record of settlements or survey. The specification of boundaries or number and the specification of the defaulters share on interest in such boundaries or number and the specification of the defaulters share on interest in such property to the best of the belief of the decree holder and so far as he has been able to ascertain it.
(b) The demand notice issued by the Recovery Officer under subrule (3) shall contains the name of the defaulter, the amount due, including the expenses , if any, the time allowed for payment and in case of non payment the particular of the properties to be attached and sold or too be sold amount attachment, as the case may be. After receiving the demand notice, the sale Office shall serve the cause to be served a copy of the demand notice upon the defaulter or upon some adult male members of his family at his usual place of residence, or upon his authorised agent or, if such personal service is not possible shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment as the case may be;
Provided that where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceeding against him is about to dispose of the whole or any part of his property the demand notice issued by the Recovery Officer under sub- rule (3) shall not allow any time to the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith .
(c) if the defaulter fails to pay the amount specified in the demand notice within the time allowed , the sale Officer shall proceed or attach and sell, or sell without attachment as the case may be, the immovable property noted in the application for execution in the manner specified below.
(d) Where attachment is required before sale, the Sale Officer shall, possible, cause a notice of the attachment to be served to be served on the defaulter personality. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulter’s last known residence, if any. The fact of attachment shall also be proclaimed by the beat of drum or other customary made at some place on or adjacent to such other place or places as the Recovery Officers may consider necessary to give due publicity to the sale. The attachment notice shall set forth that, unless the amount due to with interest and expenses be paid within the date therein mentioned, the property will be brought to sale.. A copy shall be sent to the decree holder. Where the sale officer so directs the attachment shall also be noticed by public proclamation in the official Gazette
(e) Proclamation of sale shall be published by affixing a notice inn the office of the Recovery Officer and the Tehsil Officer at least thirty days before the date fixed for the sale and also by beat of drum in the village or locality on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale. Such proclamation shall, where attachment is required before sale, be made after attachment has been effected. Notice shall also be given to the decree holder and the defaulter. The proclamation shall state the time and the place of sale and specify as fully and accurately as possible.
(i) the property to be sold.
(ii) any encumbrance to which the property is liable.
(iii) The amount for the recovery of which sale is ordered ,and
(iv) Every other matter which the sale Officer consider material for a purchaser to know in order to judge the nature and value of property.
(f) where any immovable property is sold under these rules .the sale shall be subject to the prior encumbrances on the property, if any. The decree holder shall, when the amount for realization of which the sale is held exceeds Rs.100, furnish to the sales Officer within such time as may be fixed by him or by the Recovery Officer, an encumbrance certificate from the Registration Department for the period of not less then twelve years prior to the date of attachment of the property sought to be sold, or in cases falling under the proviso to sub rule (10), prior to the date of the application for execution. The time for production for the encumbrance certificate may be extended at the discretion of the Sale Officer or the Recovery Officer, as the case may be, The sale shall be by public auction to the highest bidder, provided that it shall be open to the Sale Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other reasons ‘to be recorded in writing and provided also that the Recovery Officer or the Sale Officer may, in his discretion , adjourn the sale to a specified day and hour, recording his reason for such adjournment. Where a sale is so adjourned for a longer period then seven days, a fresh proclamation under clause (e) shall be made, unless the judgement debtor contents to waive it. The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of a recovery Officer. The time and face of save shell the fixed by the Recovery Officer and the place of sale, shall be the village or locality where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the said Recovery Officer
Provider that, in cases where an encumbrance certificate is not obtainable owing to the destruction of the connected records, an affidavit from the village Patwari in regard to the encumbrances known to him supported by a certificate from the registration department that the encumbrance certificate cannot be granted owing to destruction. of the connected records, shall be accepted in the place of an encumbrance certificate
(g) A sum of money equal to 15 percent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of purchase, and in default of such deposit, the property shall forthwith be re-sold.
(h) The reminder of the purchase money and the amount required for the general stamp for the sale certificate shall be paid within fifteen days from the date of sale.
j) Every re-sale of immovable property in
default of payment of the amounts mentioned in clause (h) within the period
allowed far such payment, shall be made after the issue of a fresh proclamation
in the manner and for the period there in before prescribed for the sale.
k) Where a decree-holder purchases the property the purchase money and the amount due on the decree shall be set of against one another and the Sale Officer shall enter ‘satisfaction of the decree in whole or in part accordingly.
(12) Where prior to the date fixed far a sale, the defaulter or any person acting on his behalf or any person claiming interest in the property sought to be sold tenders payment of the full amount due together with interest, travelling and other expenses incurred in bringing the property to sale including the expenses of attachment, if any, the Sale Officer shall forthwith release the property after canceling the order of an attachment where the property has been attached.
(13)(i) Where immovable property has been sold by the Sale Officer, any person, either owing such property or holding an interest therein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer
(a) for payment to the
purchaser sum equal to five percent of the purchase money , and
(b) for payment to the decree –holder, the amount of areas specified in the proclamation of sale for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and other costs due respect of such amount less amount which may since the date of such amount proclamation have been received by decree-holder.
(ii) If such deposit and 1application are made within thirty days from the date of sale, the Recovery Officer shall pass an order setting aside the sale and shall repay to the purchaser the purchase money so for deposits together with the five percent deposited by the applicant.
Provided that if more persons than one have made deposits and applications under this sub-rule, the application of the first depositor to the officer authorised to set aside the sale shall be accepted.
(iii) If a person applied under sub-rule (14) to set aside the sale of immovable property, he shall not be entitled to make an application under this sub-rule.
(14) 3(i) At any time within thirty days from the date of the sale of immovable property, the decree-holder or any person entitled to a share in ratable distribution of the assets or whose interests are affected by the sale, may apply to the |Recovery Officer to set aside the sale on the ground of illegality, material irregularity mistake or fraud in publishing or conducting it.
Provided that no sale shall be set aside on the ground of illegality, irregularity, mistake or fraud unless the Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of such illegality, irregularity, mistake or fraud.
(ii) If the application be allowed, the said Recovery Officer shall set aside the sale and may direct a fresh one.
(iii) On the expiration of thirty days from the date of sale, if no application to have the sale set aside is made or if such application has been made and rejected, the said Recovery Officer shall make an order confirming the sale.
“ Provided that, if he has reason to believe that the sale out to better side not with standing that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may after recording his reasons in writing set aside the sale”
(iv) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money as the case may be, shall be returned to the purchaser.
(v) After the confirmation of may such sale, the said Recover Officer shall grant a certificate of sale bearing his seal and signature to the purchaser, and such certificate shall state the property sold and the name of the purchaser and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the seal or signature of the Recover Officer shall be necessary unless the authority before whom it is produced has reason to doubt its genuineness.
(15) Where any lawful purchase or immovable property is resisted and prevented by any person other than a person (not being the defaulter) claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased, any court of competent jurisdiction
(16) It shall be lawful for the sale officer to sell the whole or any portion of the immovable property of a discharge of money due:
Provided always that, so for as may be practicable, no larger section of immovable property shall be sold that may be sufficient to discharge the amount due with interest and expenses, if any, of attachment and sale.