Section 40(7) in The Industrial Reconstruction Bank Of India Act, 1984
(7)If no cause is shown, on or before the date specified in the notice issued by the High Court, the Court shall forthwith--(a)make an order for the sale of the property which has been assigned, charged, hypothecated, mortgaged or pledged to the Reconstruction Bank or so much of such property, as would, on being sold, realise, in its estimation, an amount equivalent in value to the outstanding dues of the industrial concern to the Reconstruction Bank, together with costs of the proceedings taken under this section;(b)direct the sale of the attached property or the transfer of the management of the industrial concern to the Reconstruction Bank or to its nominee; and shall apply the proceeds of such sale for the discharge of the dues to the Reconstruction Bank and the residue of such proceeds, if any, shall be made over to the person entitled thereto in accordance with his rights and interests;(c)make the ad interim injunction made under sub-section (5), and the ad interim order of appointment of the receiver made under sub-section (6), as the case may be, absolute.
