Section 7 in Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004
7. Assessment of assets and deposit liabilities.
(1)Within thirty days from the date of appointment, the Competent Authority shall assess the deposit liabilities and the assets of the Financial Establishment and submit a report thereof to the Special Court.(2)The Competent Authority thereafter shall issue notice either individually or by means of effective media publication, inviting the claims by secured creditors, if any, and also the depositors of the Financial Establishments to submit their claims with proper proof to establish the same(3)Every notice under sub section (2) sent to or deemed to have been effected to claimants shall state that if the statement or claim is not sent to the Competent Authority before the expiry of the period of one month from the date of notice, the claims shall not be treated as claim entitled to be paid under the provision of this Act.(4)Every notice sent to a secured creditor shall require him to value the security before the expiry of the period of one month from the date of the notice and such notice shall also state that if the statement of the claim together with the valuation of the security is not sent to the Competent Authority, the Competent Authority itself shall value the security and its valuation shall be binding on such secured creditors.(5)If the claimant fails to comply with the notice as per sub section (4), such security shall be valued by the Competent Authority to the best of its judgement.
