Section 141 in The Orissa Co-operative Societies Rules, 1965
141. Application for sale and manner of sale.
(1)Upon the expiry of three months from the date of notice under Clause (a) of Sub-Section (2), of Section 91, if the sum due under the mortgage has not been paid, the State Land Development Bank or the Land Development Bank or any person authorised by it in this behalf may, after considering any objection made within that period by any person entitled to such notice apply to the Principal Officer of the Co-operative Department of area to sell the mortgaged property or any part thereof and such officer shall, after giving notice in writing to all the persons referred to in Sub-Section (2) of Section 91, direct the Sale Officer authorised in this behalf to sell such property by public auction in the manner prescribed and report the result thereof to the Bank.(2)The applicant shall apply to the Principal Officer of the Co-operative Department who has jurisdiction over the area in which the properties sought to be sold are situated and shall deposit costs on a scale prescribed by the [Auditor-General] [Substituted vide Orissa Gazette Extraordinary No. 500, dated 23.4.1997.]. The application shall be in such form as may be prescribed by the [Auditor-General] [Substituted vide Orissa Gazette Extraordinary No. 500, dated 23.4.1997.] and shall be signed by the applicant or where the applicant is the Board or Committee of the State Land Development Bank or Land Development Bank a person duly authorised by the Board or Committee and shall-(i)contain a description of the immovable property to be proceeded against sufficient for its identification and in case such property can be identified by boundaries or numbers in record of settlement of survey the specification of such boundaries or numbers;(ii)show the names of all person having interest in the property as laid down in Clause (a) of Sub-Section (2) of Section 91 of the Act;(iii)contain a report regarding the manner of service of notice under Clause (a) of Sub-Section (2) of Section 91 of the Act;(iv)specify the amount due for recovery including interest, expenses incurred in the service of the notice referred to in Sub-Section (2) of Section 91 of the Act;(v)enclose the mortgage bond where power of sale without the intervention of the Court is expressly conferred on the State Rural Development Bank.(3)On receipt of the application, the Principal Officer shall give notice in writing by Registered Post to all the persons named in the application, that he intends to sell property giving such particulars of property to be sold, if the amount claimed by the bank including expenses incurred by it in the service of the notice is not paid within a time to be allowed by him.(4)Sale - If before the expiration of the time allowed in the notice issued under Sub-rule (3) the amount specified in such notice is not paid, the Principal Officer may authorise any officer subordinate to him to act as Sale Officer and conduct sales on his behalf.(5)Publication of Proclamation - The Sale Officer shall thereupon issue proclamation of sale by affixing a notice in the office of the Principal Officer, at least 30 days before the date fixed for the sale and also by beat of drum or other customary mode in the village where mortgaged property to be sold, is situated on two consecutive days previous to the date of sale and on the date of the sale prior to the commencement of the sale. A copy of the proclamation may also be sent to the nearest Revenue Officer having jurisdiction over the village for affixing the same in their Notice Board. A copy of the proclamation shall be given to all the parties named in the application. A copy of the proclamation shall also be got affixed on a conspicuous part of the office of the Bank. The proclamation shall state the time and place of sale and specify as fairly proclamation shall state the time and place of sale and specify as fairly and accurately as possible -(a)the property to be sold;(b)the amount for the recovery of which the sale is ordered;(c)every other matter which the Sale Officer considers material for the purchaser to know in order to judge the nature and value of the property.(6)Manner of sale - 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 who, when the price offered, appears to be unduly low or for other reasons, to be recorded by him in writing and provided also that 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 adjourned for a longer period than 15 days or where there is a series of short adjournment which taken together in the aggregate amount to more than 15 days, a fresh proclamation under Sub-rue (5) shall be made unless the mortgagors consent to waive it in writing in the presence of two witnesses. The time and place of sale shall be fixed by the Principal Officer and the sale shall be held after expiry of not less than 30 days calculated from the date on which notice of the proclamation was affixed in the office of the Principal Officer of the area and the place of sale shall be the village, where the property is situated or such adjoining prominent place of public resort as may be fixed by the Sales Officer.(7)The Sales Officer shall have the power to divide a property in the lots as he thinks it necessary in the interests of the debtor or the Bank.(8)On every sale of property, the person declared to be the purchaser, shall pay immediately after such declaration, a deposit of 20 per cent on the amount of the purchase money to the Sale Officer and in default to pay such deposit the property shall forthwith be sold again by public auction. The money so received shall be deposited in the manner prescribed by the [Auditor-General] [Substituted vide Orissa Gazette Extraordinary No. 500, dated 23.4.1997.] ;Provided that where the Bank is the purchaser and is entitled to set off the purchase money under Sub-rule (12) the Sale Officer shall dispense with the requirements of this Rule.(9)The remainder of the purchase money and the amount required for the general stamp for the certificate under para 2 of the Schedule to the Act shall be paid within 15 days from the date of sale :Provided that the time for the payment of the cost of the stamp may, for good and sufficient reasons, be extended at the discretion of the Principal Officer up to thirty days from the date of sale :Provided further that in calculating amounts to be paid under this clause he may be entitled under Sub-rule (12).(10)In default of payment of the remainder within the period mentioned in the last preceding clause, the deposit may, if the Sale Officer thinks fit, after defraying expenses of the sale, forfeited to the Government and the defaulting purchase shall forfeit all claims to the property or to any part of the sum for which it may be subsequently sold :Provided that when there is no re-sale under Sub-rule (1) or where after the default by the purchaser the defaulter pays the money due, the forfeiture of the deposit money referred to, shall not be made.(11)Every re-sale of immovable property in default of payment of the amounts mentioned in Sub-rule (9) within the period allowed for such payment shall be made after the issue of fresh proclamation in the manner and for the period hereinbefore prescribed for the sale.(12)Where the Bank at whose instance the property is sold, is the purchaser the purchase money and the amount due shall be set off against one another and the Sale Officer shall enter up satisfaction of payment of the mortgage money in whole or in part, as the case may be.(13)(i)Any deficiency of the price which may happen on the re-sale held under Sub-rule (7) or (10) by reason of purchaser's default and all expenses attending such re-sale shall be certified by the Sale Officer to the Principal Officer and shall, at the instance of either the Bank or the debtor, be recoverable from the defaulting purchaser under the provision of Section 103.(ii)The Bank is not bound to proceed against the defaulting purchaser and it may recover the amount by proceeding against the defaulter.(iii)Where the property on the second sale, fetches a higher price than at the first sale, the defaulting purchaser at the first sale shall have no claim to the difference or increase.(14)(a)If at any time before the sale takes place, the mortgage or any person claiming an interest in the property sought to be sold, tenders payment of the full amount due, together with interest, batta and other expenses incurred in bringing the property to sale, the Officer shall not proceed with the sale.(b)If more persons than one come forward to make deposit and put in application under Para (1) of the Schedule to the Act the application of the first depositor to the Officer authorised to set aside the sale shall be accepted.(15)The Sale Officer shall, on the conclusion of the sale make a report to the Bank at whose instance the property was brought to sale regarding the result of the sale.(16)Whenever the sale of the property is set aside under para (1) of the Schedule to the Act, the deposit of a portion of the purchaser money under Sub-rule (8) or the entire purchase money made under Sub-rule (9), as the case may be, shall be returned to the purchaser together with the deposit made under para (1) of the Schedule of the Act.(17)Persons employed in serving notices or other processes under these rules, shall be entitled to remuneration at such rates, as may, from time to time be fixed by the Registrar.(18)The sale proceeds shall be applied in the manner provided in the Act. The amount deposited under Sub-rule (2) shall be returned to the applicant except when the costs, charges and expenses incurred by the Sale Officer as incidental to the sale or attempted sale, exceed the sale proceeds in which case such excess shall be deducted from the amount deposited and the balance, if any, shall be returned to the applicant.(19)Every person making payment towards any money due, for the recovery of which application has been made under these rules, shall be entitled to a receipt for the amount signed by the Sale Officer; such receipt shall state the name of the person making the payment and the subject-matter in respect of which the payment is made.
