Section 11 in Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004
11. Powers of the Special Court regarding realization of assets and payment to depositors.
(1)The Special Court shall have all the powers for giving effect to the provisions of this Act.(2)Without prejudice to the generality of sub section (1), the Special Court may(a)give any direction to the Competent Authority as it deems fit, for effective implementation of the provisions of this Act.(b)approve the statement of dues of the Financial Establishment due from various debtors, assessment of the value of the assets of the Financial Establishment, finalise the list of the depositors and their respective dues;(c)direct the Competent Authority to take possession of any assets belonging to or in the control of the Financial Establishment and transfer or realize the attached assets or sell the attached assets by public auction or by private sale as it deems fit or depending upon the nature of assets and credit the sale proceeds thereof to the bank accounts;(d)approve the necessary expenditure to be incurred by the Competent Authority for taking possession and realization of the assets of the financial establishment;(e)on receipt of an application under section 8, order for payment to the depositors by the Competent Authority or order for proportionate payment to the depositors in the events of the money so realized is not sufficient to meet the entire deposit liability; and(f)pass any order which the Special Court deems fit for realization of the assets of the company and repayment to the depositors of the Financial Establishment or on any matter or issue incidental thereto.Explanation. - For the purpose of this section, the expression "Financial Establishment" includes the directors, partners. Promoters, managers or member of said establishment or any other person whose property or assets have been attached under section 3.
