Section 15 in The M.P. Sahakari Krishi Aur Gramin Vikas Bank Rules, 2001
15. Procedure for distraint and sale of properties.
(1)As soon as distraint of produce and properties are made, distrainer shall prepare a list of produce and other movable properties distrained in such form as may be issued by the Registrar and copy of such list shall be delivered to the defaulter/ guarantor of any member of his/her family present at the time of distraint. The distrainer shall also give intimation in such form as may be issued by the Registrar to the defaulter/guarantor showing date, place and time on which distraint properties will be sold.(2)The distrainer shall make proper arrangements for the custody and preservation of the distrained property during the interval between the distraint and sale in such form as may be issued by Registrar. The defaulter/ guarantor may if required by the distrainer, undertake the custody and preservation of the property distrained for which a promissory bond in writing is given by him. Such custodian/preserver shall be responsible for any loss or damage caused to the distrained property owing to his/her negligence. If the distrained property is tractor, machinery etc. its custody and preservation may be kept under the supervision of Police-thana/Chowki. If cattle is distrained, it may be kept in custody in cattle bound by the distrainer at the cost of the defaulted borrower.(3)No distraint shall he made before sunrise and after sunset.(4)If crops of the land or processing units or ungathered products or other products belonging to a defaulter/guarantor are distrained, the distrainer may cause them to he sold, when fit for being reaped or gathered or may cause them to be reaped or gathered in the season and stored in a proper place until sold.(5)It shall he lawful for the distrainer to force open any stable, cow house, granary, godown, outhome, agriculture areahome, processing unit/unit or any building or any fenced area or other building and to enter any dwelling house related to the defaulter/guarantor the out door of which may be opened and to break lock/open the door of any room in such dwelling house and to distrain the products of the mortgaged property or the produce of mortgaged land or the other movable property stored therein :Provided that it shall not be lawful for such distrainer to enter any apartment in such dwelling house used for the residence of women except as hereinafter provided.(6)(a)Where a distrainer has reason to suppose that the produce of the mortgaged land and/or products of the unit financed belonging to the defaulter/guarantor is lodged within a dwelling house, the outer door of which is shut or within any apartment used as the residence for the women the distrainer shall represent the written fact to the officer-in-charge of nearest police station.(b)On such representation, the officer-in-charge of the said police station shall send a Police Officer to the spot, in the presence of whom the distrainer may force open the outer door of any room within the home except the room of residence for women and enter forcibly.(c)The distrainer may also in the presence of the Police Officer, after due notice given for the removal of women from their residence and after furnishing means for their removal in a suitable manner enter the said room and may distrain the produce of the mortgaged land or products of the financed unit or other movable property if any, deposited therein but such produce if found shall he removed immediately from such rooms after which they shall be left free to the former occupants.(7)(a)The distrainer shall cause to proclaim the date, time and place of the intended sale to be made by beat of drums or loud speakers or publication in news papers or pamphlets distributions or affixing poster in the village in which the defaulter/guarantor resides or the produce is kept and in such other place or places as the distrainer may consider necessary to give due publicity to the sale.(b)The sale shall take place after the expiration of a period of 15 days from the date of the service of the notice of demand/distraint referred to in sub-section (1) of Section 25 of the Adhiniyam ;Provided that where the property distrained is subject to speedy and natural decay, the distrainer may sell it at any time before the expiry of the said period of 15 days.(8)At the appointed date, time and place the distrainer shall, subject to the order, if any, made under sub-section (3) of Section 23 of the Adhiniyam sell by auction the distrained properly or such other part thereof as may be necessary in one or more lots as the distrainer may consider desirable and dispose of the same to the highest bidder.(9)The price of the property sold under sub-rule (8) shall be paid in cash at the time of sale or as soon thereafter as distrainer may appoint and the purchaser shall not be permitted to carry away any part of the property until he has paid the price in full.(10)If the purchaser fails to pay the price the property shall be resold and the proceeds of such resale shall be applied in the manner provided in Section 25 of the Adhiniyam. Any deficiency of price which may happen on the resale and all expenses connected with such resale shall at the instance of either the applicant or the defaulter/guarantor be recoverable from the defaulting purchaser under the provisions relating to the execution of an award of an arbitration contained in the rules made under the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961).(11)Where on an application made in this behalf it is proved to the satisfaction of any Civil Court of competent jurisdiction that any property which has been distrained under these rules has forcibly or clandestinely removed by any person, the Court may order forthwith such property to be restored to the distrainer.Explanation :- For the purpose of this clause, "Civil Court of Competent Jurisdiction" shall mean the Civil Court which would have jurisdiction to entertain a suit to enforce the mortgage.(12)Where prior to the date fixed for sale a defaulter or any person acting in his behalf or any person claiming an interest in the property distrained pays the full amount due including interest, travelling allowance and other expenses incurred in distraining and proclaiming the sale, the distrainer shall not proceed with the sale and shall release the property forthwith.(13)(a)Where any claim is preferred by any person other than the person specified in sub-rule (12) to any right or interest in the distrained property, the distrainer shall investigate the claim and dispose it of on its merits, provided that no such investigation shall be made where the distrainer considers that the claim was designedly or unnecessarily delayed.(b)Where the properly to which the claim is applied has been advertised for sale the distrainer may postpone the sale pending the investigation of the claim.
