206. Procedure where third party claims interest in property seized - (1) If before the day fixed for the sale, a third party appears before the Deputy Commissioner and claims a right or interest in any of the movable property seized in execution, the Deputy Commissioner shall examine such party or his agent according to the law for the time being in force relating to the examination of witness, and, if he sees sufficient reason for so doing may stay the sale of such property.
(2)The Deputy Commissioner shall, after taking evidence, adjudicate upon such claim, and shall make such order thereupon as he thinks fit.(3)If the claimant fails to establish his right to the property seized in execution the Deputy Commissioner may, by his order under sub-section (2), award to the judgement-creditor against the claimant, in addition to the costs of the proceedings such sum as the Deputy Commissioner may consider sufficient to cover any loss of interest or any other damage which the judgement-creditor has sustained by reason of the postponement of the sale.(4)The party against whom any order is passed by the Deputy Commissioner under this Section may, at any time within one year from the date of the order, bring a suit in the Civil Court to establish his right:Provided that if the property has been sold the suit shall not be for the recovery of the property but for damages against the judgement-creditor by whom the property was brought to sale.
