Section 94 in Rajasthan Co-operative Societies Rules, 2003
94. Procedure in execution of awards etc.
(1) Any decree holder or any person specially authorised by the Registrar in this behalf hereinafter referred to as applicant requiring the provisions of clause (c) sub section (1) of section 100 to be applied, shall apply to the Recovery Officer within whose jurisdiction the defaulter resides or the property of the defaulter is situated:Provided that the Recovery Officer shall initiate the recovery process first against the original loanee and where he is satisfied that it is either impossible or very difficult to recover the debt or demand from the original loanee for the reason to be recorded in writing, he may proceed against the person who has executed guarantee for repayment of such debt or demand.(2)Every such application shall be made in the form specified by the Registrar and shall be signed by the applicant and shall be accompanied by such fee as may be specified by general or special order by the Registrar. The applicant may indicate whether he wishes to proceed against the immovable property mortgaged to the decree holder or, other immovable property or to secure the attachment of movable property:(3)On receipt of such application, or when the Registrar is proceeding under Rule 98 the Recovery Officer shall verify the correctness and genuineness of the particulars set forth in the application with the record, if any in the office of the Registrar and prepare a demand notice in writing in duplicate in the form specified by the Registrar setting forth the name of the defaulter and the amount due and forward it to the Sale Officer.(4)Unless the applicant has expressed a desire that proceedings should be taken in a particular order as laid down in sub-rule (2), execution shall ordinarily be taken in the following manner:-(i)movable property of the defaulter shall be first proceeded against, but this shall not preclude the immovable property being proceeded against simultaneously in case of necessity.(ii)if there is no movable property, or if the sale proceeds of the movable property, or properties attached and sold are insufficient to meet in full the demand of the applicant, the immovable property mortgaged to the applicant, or other immovable property belonging to the defaulter may be proceeded against.(5)For the seizure and sale of movable property, the following Procedure shall be observed :-(a)The Sale Officer shall, after giving previous notice to the applicant, proceed to the place, village, town or city as the case may be, where the defaulter resides or the property to be distrained is situated and serve a demand notice upon the defaulter if he is present. If the amount due together with the expenses be not at once paid the sales officer shall make the distress and shall immediately deliver to the defaulter a list of inventory of the property distrained and an intimation of place and day and hour at which the distrained property will be brought to sale if the amount due is not previously discharged. If defaulter is absent, the Sale Officer shall serve the demand notice on some adult member of the family, or on his authorised agent, or when such service cannot be effected shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of the property distressed on the usual place of residence of the defaulter endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale.(b)After the distress is made, the Sale Officer may arrange for the custody of the property attached with the applicant or otherwise. If the Sale Officer requires the applicant to undertake the custody of the property, he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the applicant. If the attached property is livestock, the applicant shall be responsible for providing the necessary food therefor. The Sale Officer may, at the instance of the defaulter or of any person claiming an interest in such property, leave it in the village, city or town as the case may be or place where it was attached, in the charge of such defaulter or such persons, if he enters into a bond in the form specified by the Registrar with one or more sufficient securities for the production of the property when called for.(c)The distress shall be made after sunrise and before sunset and not at any other time.(d)The value of property distrained shall as nearly as possible be proportionate to the sum due against the defaulter together with interest and all expenses incidental to the distraint, detention and sale.(e)If crops or ungathered products of the land belonging to a defaulter are attached, the Sale Officer may cause them to be sold when fit for reaping or gathering, or at his option may cause them to be reaped or gathered in the due season and stored in proper place until sold. In the later case, the expense of reaping or gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.(f)The Sale Officer shall not work the bullocks or cattle, or make use of the goods or effect distrained, and he shall provide the necessary food for the cattle or live-stock, the expense attending which shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.(g)It shall be lawful for the Sale Officer to force open any stable, cow house, granary, go-down, out-houses or other building and he may also enter any dwelling house, the outer door of which may be open and may -break open the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the Sale Officer to break open or enter apartment in such dwelling house appropriated for the zenana or residence of women except as hereinafter provided.(h)Where the Sale Officer may have reason to believe that the property of a defaulter is lodged within a dwelling house the outer door of which is closed or within any apartments appropriated to women, which by custom or usage are considered private, the Sale Officer shall report the fact to the Officer-in-charge of nearest police station. On such report the officer-in-charge of the said station shall send a police officer to the spot in the presence of whom the Sale Officer may force open the outer door of such dwelling house or break open the door of any room within the house except room appropriated by women. The Sale Officer may also, in the presence of a police officer, after due notice given for the removal of women within a zenana and, after furnishing means for their removal in a suitable manner if they be women of rank, who, according to the customs or usage cannot appear in public, enter the zenana apartments for the purpose of distraining the defaulter's property, if any, deposited therein, but such property, if found, shall be immediately removed from such apartments after which they shall be left free to the former occupants.(i)The Sale Officer shall on the day previous to, and to the day of, sale cause proclamation of time and place of the intended sale to be made by beat of drum in the village, city or town as the case may be, in which the defaulter resides and in such other place or places as the Sale Officer may consider necessary to give due publicity to the sale. No sale shall take place until after the expiration of the period of 15 days from the date on which the sale notice has been served or affixed in the manner laid down in clause (a):Provided that, where the property seized is subject to speedy and natural decay, or where the expenses of keeping it in custody is likely to exceed its value, the Sale Officer may sell it, at any time, before the expiry of the said period of 15 days unless the amount due is sooner mid.(j)At the appointed time the property shall be put in one or more lots, as the Sale Officer may consider advisable, and shall be disposed of to the highest bidder;Provided that, it shall be open to the Sale Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other adequate reasons. Where the property is sold for more than the amount due, the excess amount, after deducting the interest and the expense of process and the other charges, shall be paid to the defaulter:Provided further that the Recovery Office or 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 so adjourned for longer period than 7 days a fresh proclamation under clause (i) shall be made unless the defaulter consents to waive it.(k)The property sold shall be paid for in cash at the time of sale, or as soon thereafter as the Sale Officer holding the sate shall appoint, and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full. Where the purchaser fails in the payment of purchase money, the property shall be re-sold.(l)Where it is proved to the satisfaction of any civil court of competent jurisdiction that any property, which has been distrained under these rules has been forcibly or clandestinely removed by any person, the court may order forth with such property to be restored to the Sale Officer.(m)Where prior to the day fixed for sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property attached, pays the full amount due including interest, batta and other costs incurred in attaching the property, the Sale Officer shall cancel the order of attachment and release the property forthwith.(6)Where the movable property to be attached is the salary or allowance or wages of a Public Officer or a Railway servant or a servant of local authority or a firm or a company, co-operative society, the Recovery Officer may, on receiving a report from the Sale Officer, order that the amount shall subject to the provisions of section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908), be with-held from such salary or allowance or wages either in one payment or by monthly installments as the Recovery Officer may direct and upon receipt of the order the officer or other person whose duty it is to disburse such salary or allowance or wages shall with hold and remit to sale officer the amount due under the order or monthly instalments, as the case may be.(7)(i)Where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter, prohibiting him form transferring the share or interest or charging it in any way.(ii)Where the property to be attached is a negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the office of the recovery officer ordering the attachment and be held subject to his further orders.(iii)Where the property to be attached is in the custody of any court or public officer, the attachment may be made by a notice to such court or officer requesting that such property and any interest of dividend becoming payable thereon may be held subject to the further demands of Recovery Officer issuing the notice;Provided that, where such property is in the custody of a court or Recovery Officer or another district, any question of title or priority arising between the applicant and any other person not being the defaulter, claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be left to be determined by such court or Recovery Officer.(8)(i)Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made, if the decree sought to be attached was passed by the Registrar or by any person to whom a dispute was transferred by the Registrar under Section 60 of the Act or by an arbitrator or any person, then by the order of the Registrar.(ii)where the Registrar makes an order under clause (i), he on the application of the applicant who has attached the decree, proceed to execute the attached decree and apply the net proceeds in satisfaction of the decree sought to be executed.(iii)The holder of a decree sought to be executed by the attachment of another decree of the nature specified in clause (i) shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner for the holder thereof.(iv)Where the property to be attached in execution of a decree is a decree other than a decree of the nature referred to in clause (i), the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree, prohibiting him from transferring or charging the same in any way.(v)The holder of a decree attached under this sub-rule shall give the Recovery Officer executing the decree such information and aid as may reasonably be required.(vi)On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer making an order of attachment under this sub-rule shall give notice of such order to the judgment debtor bound by the decree attached; and no payment of adjustment of the attached decree made by the judgment debtor in contravention of such order after receipt of notice thereof, either through the Recovery Officer or otherwise, shall be recognized so long as the attachment remains in force.(9)Where the movable property to be attached is -(a)a debt due to the defaulter in question,(b)a share in the capital of a corporation or a deposit invested therein, or,(c)other movable property not in the possession of the defaulter, except property deposited in, or in the custody of, any civil court, the attachment shall be made by a written order signed by the recovery Officer prohibiting, -(i)in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof;(ii)in the case of a share of deposit, the person in whose name the share or the deposit may be standing, from transferring the share or deposit or receiving any dividend or interest thereon: and(iii)in the case of any other movable property, the person in possession of it from giving it over to the defaulter.A copy of such order shall be sent, in the case of the debt, to the debtor, in the case of the share or deposit, to the proper officer of the corporation and in the case of any other movable property to the person in possession of such property. As soon as the debt referred to in clause (a) or the deposit referred to in clause (b) matures, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not with drawable, the Recovery Officer shall arrange for its sale through a broker where the share is with drawable, its value shall be paid to the Recovery Officer or the party referred to in clause (c). The person concerned shall place it in the hands of the Recovery Officer as it becomes deliverable to the debtor.(10)Immovable property shall not be sold in execution of a decree unless such property has been previously attached:Provided that where the decree has been obtained on the basis of a mortgage of such property it shall not be necessary to attach it.(11)In the attachment and sale or sale without attachment of immovable property, the following rules shall be observed:(a)The application presented under sub-rule (2) shall 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 or survey, the specification of such boundaries or number and the specification of the defaulters share or interest in such property to the best of the belief on the applicant and so far as he has been able to ascertain it.(b)The demand notice issued by the Recovery Officer under sub-rule (3) shall contain the name of the defaulter, the amount due, including the expenses, if any, and the batta to be paid to the person who shall serve the demand notice, the time allowed for payment and in case of non-payment, the particulars of the properties to be attached and sold or to be sold without attachment, as the case may be. After receiving the demand notice, the Sale Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult member of his family at his usual place of residence, or upon his authorised agent or, if such personal service is not possible, shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment, as the case may be :Provided that, where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceeding against him is about to dispose of the whole or any part of his property, the demand notice issued by the Recovery Officer under sub rule (3) shall not allow any time to the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith(c)If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the Sale Officer shall proceed to attach and sell or sell without attachment, as the case may be, the immovable property noted in the application for execution in the following manner.(d)Where attachment is required before sale, the Sale Officer shall if possible, cause a notice of attachment to be served on the defaulter personally. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulters last known residence, if any. The fact of attachment shall also he proclaimed by beat of drum or other customary mode at some place on or adjacent to, such property and at such other place or places as the Recovery Officer may consider necessary to give due publicity to the sale. The attachment notice shall set forth that unless the amount due with interest and expenses be paid within the date therein mentioned, the property will be brought to sale. A copy shall be sent to the applicant. Where the Sale Officer so directs, the attachment shall also be notified by public proclamation in the Official Gazette.(e)Proclamation of sale shall be published by affixing a notice in the office of the Recovery Officer and the Tehsil office at least thirty days before the date fixed for the sale and also by beat of drum in the village, city or town as the case may be (on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale). Such Proclamation shall, where attachment is required before sale, be made after the attachment has been effected. Notice shall also be given to the applicant and the defaulter. The proclamation shall state the time and place of sale specifying as fairly and accurately as possible:-(f)the property to be sold,(ii)any encumbrance to which the property is liable,(iii)the amount for the recovery of which sale is ordered, and(iv)every other matter which the Sale Officer considers material for a purchaser to know in order to judge the nature and value of the property.(f)When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The applicant shall, when the amount for the realization of which the sale is held exceeds Rs. 1000, furnish to the Sale Officer within such time as may be fixed by him or by the Recovery Officer, an encumbrance certificate from the Registration Department for the period of not less than twelve years prior to the date of attachment of the property sought to be sold, or in cases falling under the proviso to sub-rule (10), prior to the date of the application for execution. The time for production of the encumbrance certificate may be extended at the direction of the Sale Officer or the Recovery Officer, as the case may be. The sale shall be by public auction to the highest bidder:Provided that, it shall be open to Sale Officer to decline to accept the highest bid where the price offer appears be unduly low or for other adequate reasons :Provided further that, the Recovery Officer or the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour, recording his reason for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause (e) shall be made, unless the defaulter consents to waive it. The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of the Recovery Officer. The time and place of sale shall be fixed by the Recovery Officer and the place of sale shall be the village, city or town as the case may be, where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the Recovery Officer :Provided also that, in cases where an encumbrance certificate is not obtainable owing to the destruction of the concerned records, and affidavit from the village Patwari in regard to the encumbrances known to him supported by a certificate cannot be granted owing to the destruction of the connected records, shall be accepted in place of an encumbrance certificate.(g)A sum of money equal to 15 percent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of the purchase, and in default of such deposit the property shall forthwith be resold :Provided that, where the applicant is the purchaser and is entitled to set off the purchase money under clause (k) the Sale Officer shall dispense with the requirements of this clause.(h)The remainder of the purchase money and the amount required for the stamps for the sale certificate shall be paid within fifteen days from the date of sale:Provided that, the time for payment of the cost of the stamp may, for good and sufficient reasons, be extended at the discretion of the Recovery Officer up to thirty days from the date of sale :Provided further that, in calculating the amounts to be paid under this clause, the purchaser shall have the advantage of any set off to which he may be entitled under clause (k).(i)In default of payment within the period mentioned in the last preceding clause, the deposit may, if the Recovery Officer thinks fit, after defraying the expenses of the sale, be forfeited to the Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold. Every resale of immovable property in default of payment of the amounts mentioned in clause (h) within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period therein before prescribed for the sale.(k)Where an applicant purchases the property, the purchase money and the amount due on the decree shall be set off against one another, and the Sale Officer shall enter up satisfaction of the decree in whole or in part accordingly.(12)Where prior to the date fixed for a sale, the defaulter or any person acting on his behalf 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, including the expenses of attachment, if any, the Sale Officer shall forth with release the property after cancelling where the property has been attached, the order of attachment.(13)(i)Where immovable property has been sold by the Sale Officer, any person either owing such property or holding an interest iherein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer;(a)for payment to the purchaser a sum equal to 5 per cent of the purchase money, and(b)for payment to the applicant, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and other costs due in respect of such amount, less amount which may since the date of such proclamation have been received by the applicant.(ii)If such deposit and application are made within thirty days from the date of sale, the Recovery Officer shall pass an order setting aside the sale and shall repay to the purchaser, the purchase money so far as it has been deposited, together with the 5 per cent, deposited by the applicant:Provided that, if more persons than one have made deposit and application under this sub-rule, the application of the first depositor to the officer authorised to set aside the sale, shall be accepted.(iii)If a person applied under sub-rule (14) to set aside the sale of immovable property, he shall not be entitled to make an application under this sub rule.(14)(i)At any time within thirty days from the date of the sale of immovable property, the applicant or any person entitled to share in a rateable distribution of the assets or whose interests are affected by the sale, may apply to the Recovery Officer to set aside the sale on the ground of a material irregularity or mistake or fraud in publishing or conducting it:Provided that, no sale shall be set aside on the ground of irregularity or fraud unless the Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of such irregularity, mistake or fraud.(ii)If the application be allowed, the Recovery Officer shall set aside the sale and may direct a fresh one.(iii)On the expiration of thirty days from the date of sale if no application to have the sale set aside is made or if such application has been made and rejected, the Recovery Officer shall make an order confirming the sale:Provided that, if he has reason to believe that the sale ought to be set aside notwithstanding that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may, after recording his reasons in writing set aside the sale.(iv)Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.(v)After the confirmation of any such sale, the Recovery Officer shall grant a certificate of sale bearing his seal and signature to the purchaser, and such certificate shall state the .property sold and the name of the purchaser, and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the sale or signature of the Recovery Officer shall be necessary unless the authority before whom it is produced has reason to doubt its genuineness.(vi)An order made under this sub-rule shall be final, and shall not be liable to be questioned in any suit or other legal proceedings.(15)Where any lawful purchaser of immovable property is resisted and prevented by any person other than a person (not being the defaulter) claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased, any court of competent jurisdiction on application, and production of the certificate of sale provided for by sub-rule (14) shall cause the proper process to be issued for the purpose of putting such purchaser in possession in the same manner as if the immovable property purchaser had been decreed to the purchaser by a decision of the court.(16)It shall be lawful for the Sale Officer to sell the whole or any portion of the immovable property of a defaulter in discharge of money due :Provided that, so far as may be practicable, no larger section or portion of immovable property shall be sold than may be sufficient to discharge the amount due with interest and expenses of attachment, if any, and sale.(17)Persons employed in serving notice or in other process under these rules shall be entitled to batta at such rates as may, from time to time, be fixed by the Recovery Officer.(18)Where the cost and charges incurred in connection with attachment and sale of movable property or the attachment and sale or sale without attachment of immovable property under this rule, exceeds the amount of the cost deposited by the applicant, such excess shall be deducted from the sale proceeds of the property sold or the moneys paid by the defaulter, as the case may be, and the balance shall be made available to the applicant.(19)Every person making a payment towards any money due for the recovery of which application has been made under this rule shall be entitled to a receipt for the amount signed by the Sale Officer or other officer empowered by the Recovery Officer in that behalf, such receipt shall state the name of the persons making the payment and the subject matter in respect of which the payment is made.(20)(a)Where any claim is preferred to, or any objection is made to the attachment of, any property attached under this rule on the ground that such property is not liable to such attachment, the Sale Officer shall investigate the claim or objection and dispose it of on merits:Provided that no such investigation shall be made when the Sale Officer considers that the claim or objection is frivolous.(b)Where the property to which the claim or objection relates has been advertised for sale, the Sale Officer may postpone the sale pending the investigation of the claim or objection,(c)Where a claim or an objection is preferred to the party against whom an order is made may institute a suit to establish the right which he claims to be the property in dispute, but, subject to the result of such suit, if any, the order shall be final.(21)(i)any deficiency of price which may arise on a re-sale held under clause (j) of sub-rule (11) by reason of the purchaser's default, and all expenses attending such resale shall be certified by the Sale Officer to the Recovery Officer and shall, at the instance of either the applicant or the defaulter, be recoverable from the defaulting purchaser under the provision of this rule. The costs, if any, incidental to such recovery shall also be borne by the defaulting purchaser.(ii)Where the property may on the second sale, sell for a higher price than at the first sale, the defaulting purchaser at the first sale, shall have no claim to the difference or increase.(22)Where any property has been attached in execution of decree, but by reason of the applicant's default the Recovery Officer is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceedings to a future date. Upon the dismissal of such application, the attachment shall cease.(23)(a)Where the Sale Officer attaches or has attached under these rules, any property not in the custody of any court, which is already under attachment made in execution of a decree of any court, such court shall receive and realize such property and shall determine claims thereto and any objections to the attachment thereof;Provided that, where the property is under attachment in the execution of decree of more courts than one, the court which shall receive or realize such property and shall determine any claim thereto and any objection to the attachment thereof shall be the court of the highest grade, or where there is no difference in grade between such courts, the court under whose decree the property was first attached.(b)Where assets are held by the Sale Officer and before the receipt of such assets, demand notices in pursuance of applications for execution of decree against the same defaulter have been received from more than one decree holder and the decree holders have not obtained satisfaction, the assets after deducting the costs of realization, shall be rateably distributed by the Sale Officer among (all) such applicants in the manner provided in section 73 of the Code of Civil Procedure, 1908.(24)Where a defaulter dies before the decree has been fully satisfied an application under sub-rule (1 ) may be made against the legal representative of the deceased and thereupon all the provisions of this rule shall, apply as if such legal representative was the defaulter.(25)Where, in connection with the proceedings on an application under section 100 of the Act, and person requires the issue of any process or objects to any process issued or objects to any order passed, he shall pay such fee as may be specified by the Registrar in this behalf.
