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State of Tamilnadu - Section

Section 12 in Tamil Nadu Pawnbrokers Rules, 1943

12. Procedure in auction of pledges.

(1)The auctioneer to whom the sale of a pledge by public action is entrusted shall be a person approved by the Commissioner of Police in the city of [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] and the Additional District Magistrate elsewhere.
(2)An auctioneer approved by the Commissioner of Police or the Additional District Magistrate, as the case may be, shall be competent to conduct public auctions under these rules only within the area specified by the officer approving the auctioneer:Provided that an approved auctioneers may be authorised to do business in more than one division in a district with the approval of the Collector or Revenue Divisional Officer of the District.(2-A) The auctioneer shall inform the Tahsildar having jurisdiction over the area regarding the place, date and time of the auction sale and all auction sales shall be conducted in the presence of an Officer of the Revenue Department not below the rank of Deputy Tahsildar. The Officer so deputed shall be provided with a list of representations, if any, received from the pawners against the proposed auction sale up to, and inclusive of, the date of sale. The Officer so deputed has power to cancel the auction of the articles involved in all such representation received up to and inclusive of the day of auction, subject to the subsequent approval by the Personal Assistant (General) to the Collector of [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] or the Revenue Divisional Officers concerned.
(3)The pawnbroker shall apply before the 15th of each month to the Collector of [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] in the City of Chennai or to the Revenue Divisional Officers in districts other than [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).], for permission for the sale of jewel or articles which became time barred till the end of the preceding month with lists in triplicate, containing particulars of the date of pledge, name and address of the pawner, the name or description of the jewels pledged and their approximate value proposed to be sold in auction. The pawnbroker shall also enclose the written consent of the authorized auctioneer to conduct the auction.
(4)On receipt of the application referred in sub-rule (3) above, the Commissioner of Police or the Additional District Magistrate, as the case may be, may grant the permission applied for, fixing a time limit within which the auction shall be conducted. Of the three lists submitted under sub-rule (3) above, one copy of the list shall be retained in the office of the Commissioner of Police or the Additional District Magistrate, as the case may be, one copy of the list shall be sent to the pawnbroker and the third copy of the list shall be sent to the auctioneer duly signed by the authority granting the permission.
(5)The Government or the [Board of Revenue] [By virtue of section 10(1) of the Tamil Nadu Board of Revenue Abolition Act, 1980 (Tamil Nadu Act 36 of 1980). Now, Commissioner of Revenue Administration, vide G. O. Ms. No. 2675, Revenue, dated the 1st December 1980.] may, in their or its discretion at any time, either suo motu or on an application, call for and examine the records of an order passed by the Commissioner of Police, [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).], or by the Additional District Magistrate in Districts other than [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).], under 12(1), for the purpose of satisfying themselves or itself as to the legality or propriety of such order and may in reference thereto pass such order as they think or it thinks fit.
(6)The auctioneer shall cause all pledge to be exposed to public view.
(7)In respect of all cases in which permission under sub-rule (4) above was received during the period from September to November, auction shall be conducted, on a day to be fixed by the auctioneer in the first fortnight of February. Similarly, in respect of cases for which orders were received for the period from December to February, March to May and June to August, the auction shall be conducted in the first fortnight of May, August and November, respectively:Provided that, in exceptional circumstances, the Personal Assistant (General) to the Collector of [Chennai] [This word was substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] or the Revenue Divisional Officer, as the case may be, may permit any deviation from the schedule; and
(i)The auctioneer shall print and publish a catalogue of the pledge to be sold in auction with the following particulars: -
(a)the name, place of business and licence number of the pawnbroker concerned;
(b)date of loan;
(c)number of pledge in pledge book;
(d)full and detailed description of article (weight to be noted in the case of jewels);
(e)name and address of pawner; and
(f)date, hour and place of sale.
(ii)The printed catalogue referred to in clause (i) shall be published in the following manner: -
(a)A copy shall be pasted at the place of business of the pawnbroker concerned and also at the place of sale.
(b)Copies shall be given to intending bidders.
(iii)The auctioneer shall send at least a week before the date fixed for the sale -
(a)two copies of the printed catalogue to the police station having jurisdiction over the premises where the auction is to be held, one copy for being pasted on the notice board of the police station and another copy for record at the police station;
(b)one copy of the printed catalogue to the police stations having jurisdiction over the place of the business of the pawnbroker concerned for record at such police station; and
(c)in any case shall notify each of the police station having jurisdiction over the place of business of the pawnbroker concerned and the place or places of sale, any postponement of such auction and the subsequent date of auction.
(iv)The auctioneer shall also send a copy of the printed catalogue by registered post of the pawner at least a week before the date fixed for the sale.
(v)The auctioneer shall send a copy of the printed catalogue by registered post with acknowledgement due to the pawner to his last known address at least forty-five days before the date fixed for the sale. If the notice so sent is returned undelivered for some reason or the other, the auctioneer shall, within the seven days from the date of receipt of the undelivered notice, send to the Village Administrative Officer or the Village Officer, as the case may be, having jurisdiction over the last known address of the pawner, two copies of the printed catalogue with a requisition in writing that a copy of the catalogue should be served on the pawner by affixture on a conspicuous place of the house or premises in which the pawner is known to reside or has last resided or carried on business or personally worked for gain. The Village Administrative Officer, or the Village Officer, as the case may be, on receipt of the two copies of the printed catalogue, shall have one copy served by affixture and also have proclamation made at the place of the contents of the catalogue relating to the pawner by beat of drum, within seven days from the date of receipt of the relating to the requisition of the auctioneer. The Village Administrative Officer or the Village Officer, as the case may be, shall furnish to the auctioneer a certificate of such affixture and proclamation, within five days from the date of such affixture and proclamation. The auctioneer shall not take further action to auction the pledge of the pawner till the acknowledgement of the pawner for having received the printed catalogue or the certificate of affixture and proclamation referred to above is received by him.
(8)The pledge of each pawnbroker in the catalogue shall be separate from the pledges of any other pawnbroker.
(9)The auctioneer shall insert in some public newspaper approved by the Collector, [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] in [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] City or by the Revenue Divisional Officer elsewhere, an advertisement giving notice of the sale and stating -
(a)the pawnbroker's name and place of business;
(b)the months in which the pledges were pawned; and
(c)the date, hour and place of sale.
(10)The advertisement shall be inserted on two several days in the same newspaper, and the second advertisement shall be inserted at least ten clear days before the first day of sale.
(11)Where a pawnbroker bidder at a sale, the auctioneer shall not take the. bidding in any form other than that in which he takes the bidding of other persons at the same sale; and the auctioneer on knocking down any article to a pawnbroker shall forthwith declare audibly the name the pawnbroker as purchaser.
(12)The auctioneer shall, within fourteen days after the sale, deliver to the pawnbroker a copy of the catalogue, or of so much there of as relates to the pledges of that pawnbroker, filled up with the amounts for which the several pledges of that pawnbroker were sold as well as the charges for the sale of each of them and authenticated by the signature of the auctioneer.
(13)The pawnbroker shall preserve every such catalogue for at least three years after the auction.(13-A) The licensing authority shall commence further action under sub-section (1) of section 14-A of the Act within a period of fifteen days from the date of suspension of licence under sub-section (2-A) of the said section 14-A of the Act.
(14)Where a pledge has been sold for more than the amount of the loan and interest and prescribed charges due to the sale, the pawnbroker shall, within thirty days from the date of the sale, intimate the pawner by registered post acknowledgement due the surplus amount realized by these sale.
(15)In all cases of auction sales of articles made of gold and, or precious stones, there shall be an upset price which shall not be less than 80 per cent of the value of the gold content in current prices plus 80 per cent of the value of the precious stones, if any, forming part of the articles as assessed by an appraiser, who is approved by the Personal Assistant (General) to the Collector, Chennai City or by the Revenue Divisional Officer elsewhere.Explanation I. - An "Appraiser" means a person who was worked as appraiser with any of the reputed jewellers In the State for more than ten years. An "Appraiser" also includes a person who is working as an appraiser in the District Co-operative Central Banks or Co-operative Union Banks or Nationalized Banks.Explanation II. - "Reputed Jeweller" means a person or company or a shop engaged in the business of manufacture or sale of articles made of gold or precious stones under licence for a period of not less than ten years.(15-A) The Commissioner of Revenue Administration or the District Revenue Officers may in their discretion, at any time, either suo motu or on an application, call for and examine the records relating to the appointment of appraisers made by the Personal Assistant (General) to the Collector of [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] in [Chennai] [Substituted for the word 'Madras' by section 3 of the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] City or by the Revenue Divisional Officers elsewhere under sub-rule (15), for the purposes of satisfying themselves as to the appropriateness or propriety of such order and may in reference thereto pass such order as they think fit.
(16)The appraiser shall be eligible for commission for valuing each of the articles referred to in sub-rule (15) at the rate of half a per cent on the value of the article assessed which shall be not less than rupees two and not more than rupees ten.