TaxTMI 
TaxTMI 
GENERAL PROVISIONS
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....operty of the defaulter, as would be liable to attachment in execution of a decree of a civil court, within the said period of fifteen days if— (a) he is satisfied, for reasons to be recorded in writing, that the defaulter is likely to conceal, remove or dispose of the whole or any part of the movable property; and (b) the realisation of the amount of the certificate would in consequence be delayed or obstructed. (3) The defaulter whose property has been so attached may furnish security to the satisfaction of the Tax Recovery Officer and on such acceptance of the security by the Tax Recovery Officer, the attachment shall be cancelled from the date on which the security is accepted. Mode of recovery. 3. (1) If the amount mentioned in the notice is not paid within the time specified therein, or within such further time as the Tax Recovery Officer may grant in his discretion, the Tax Recovery Officer shall proceed to realise the amount by one or more of the following modes, namely:— (a) by attachment and sale of the defaulter's movable property; &nbs....
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....e manner laid down in this Schedule, on the ground that the purchase was made on behalf of the plaintiff or on behalf of some one through whom the plaintiff claims. (2) Nothing in paragraph (1) shall bar a suit to obtain a declaration that the name of any purchaser certified thereunder was inserted in the certificate fraudulently or without the consent of the real purchaser, or interfere with the right of a third person to proceed against that property, though ostensibly sold to the certified purchaser, on the ground that it is liable to satisfy a claim of such third person against the real owner. Disposal of proceeds of execution. 7. (1) Whenever assets are realised by sale, or otherwise, in execution of a certificate, the proceeds shall be disposed of in the following manner, namely:— (a) they shall first be adjusted towards the amount due under the certificate in execution of which the assets were realised and the costs incurred in the course of such execution; (b) if there remains a balance after the adjustment referred to in clause (a), the same shall be utilised for satisfaction of any....
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....bsp; (4) The claimant or objector must adduce evidence— (a) in the case of an immovable property at the date of the service of the notice issued under this Schedule to pay the arrears, or (b) in the case of a movable property, at the date of the attachment, to show that he had some interest in, or was possessed of, the property in question— (5) The Tax Recovery Officer shall make an order releasing the property wholly or to such extent as he thinks fit, from attachment or sale, if he is satisfied or investigation that for the reason stated in the claim or objection, such property— (a) was not, at the said date, in the possession of the defaulter or of some person in trust for him; (b) was not in the occupancy of a tenant or other person paying rent to the defaulter; or (c) being in the possession of the defaulter at the said date, it was so in his possession, not on his own account or as his own property, but on account of or in trust for some other person, or partly on his own account and partly on accou....
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....eunder to a specified day and hour; and the officer conducting any such sale may, in his discretion, adjourn the sale, after recording his reasons for such adjournment. (2) If the sale is made in, or within the precincts of, the office of the Tax Recovery Officer, no such adjournment shall be made without the leave of the Tax Recovery Officer. (3) Where a sale of immovable property is adjourned under sub-paragraph (1) for a longer period than one calendar month, a fresh proclamation of sale under this Schedule shall be made unless the defaulter consents to waive it. (4) Every sale shall be stopped if, before the lot is knocked down, the arrears and costs (including the costs of the sale) are tendered to the officer conducting the sale, or proof is given to his satisfaction that the amount of such arrears and costs has been paid to the Tax Recovery Officer who ordered the sale. Private alienation to be void in certain cases. 15. (1) Where a notice has been served on a defaulter under paragraph 1, the defaulter, or his representative in interest, shall not be competent to mortgage, charge, lease or otherwise deal wi....
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....wered by him in that behalf) a warrant in writing and signed with his name specifying the name of the defaulter and the amount to be realised. Service of copy of warrant. 21. The officer shall cause a copy of the warrant to be served on the defaulter. Attachment. 22. If, after service of the copy of the warrant, the amount is not paid forthwith, the officer shall proceed to attach the movable property of the defaulter. Property in defaulter's possession. 23. (1) Where the property to be attached is movable property (other than agricultural produce) in the possession of the defaulter, the attachment shall be made by actual seizure, and the officer shall keep the property in his own custody or the custody of one of his subordinates and shall be responsible for due custody thereof. (2) The officer referred in sub-paragraph (1) may sell the property seized at once, if— (a) the property seized is subject to speedy and natural decay; or (b) the expense of keeping the seized property in custody is likely to exceed its value. Agricultural produce. 24. (1) Where the property to be attached is a....
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....red from the soil. (5) Where an order for the attachment of a growing crop has been made at a considerable time before the crop is likely to be fit to be cut or gathered, the Tax Recovery Officer may suspend the execution of the order for such time as he thinks fit, and may, in his discretion, make a further order prohibiting the removal of the crop pending the execution of the order of attachment. (6) A growing crop which from its nature does not admit of being stored shall not be attached under this paragraph at any time less than twenty days before the time at which it is likely to be fit to be cut or gathered. Debts and shares. 26. (1) In the case of a debt not secured by a negotiable instrument, a share in a corporation or other movable property not in the possession of the defaulter except property deposited in, or in the custody of, any court, the attachment shall be made by a written order prohibiting, (a) in the case of the debt the creditor from recovering the debt and the debtor from making payment thereof until the further order of the Tax Recovery Officer; &nb....
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.... of Government servants. 29. Attachment of the salary or allowances of servants of the Government, or a local authority, may be made in the manner provided under rule 48 of Order 21 of the First Schedule to the Code of Civil Procedure, 1908, and the provisions of the said rule shall, for the purposes of this paragraph, apply subject to such modifications as may be necessary. Attachment of negotiable instrument. 30. Where the property is a negotiable instrument not deposited in a court or in the custody of a public officer, the attachment shall be made by actual seizure, and the instrument shall be brought before the Tax Recovery Officer and held subject to his orders. Attachment of property in custody of court or public officer. 31. (1) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held subject to the further orders of the Tax Recovery Officer by whom the notice is issued. (2) Where the property is in the custody of a court, any question of title or priorit....
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....able opportunity to women to withdraw. Sale. 37. The Tax Recovery Officer may direct that any movable property attached under this Schedule or such portion thereof as may seem necessary to satisfy the certificate shall be sold. Issue of proclamation. 38. When any sale of movable property is ordered by the Tax Recovery Officer, the Tax Recovery Officer shall issue a proclamation, in the language in use in the district, of the intended sale, specifying the time and place of sale and whether the sale is subject to confirmation or not. Proclamation how made. 39. (1) Such proclamation shall be made by beat of drum or other customary mode— (a) in the case of property attached by actual seizure— (i) in the village in which the property was seized, or, if the property was seized in a town or city, then, in the locality in which it was seized; and (ii) at such other places as the Tax Recovery Officer may direct; (b) in the case of property attached otherwise than by actual seizure, in....
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....hered, and is ready for storing. (2) Where the crop from its nature does not admit of being stored or can be sold at a greater value in an unripe stage, it may be sold before it is cut and gathered, and the purchaser shall be entitled to enter on the land, and to do all that is necessary for the purpose of tending or cutting or gathering the crop. Sale to be by auction. 43. The property shall be sold by public auction in one, or more, lots as the officer may consider advisable, and if the amount to be realised by sale is satisfied by the sale of a portion of the property, the sale shall be immediately stopped with respect to the remainder of the lots. Sale by public auction. 44. (1) Where movable property is sold by public auction, the price of each lot shall be paid at the time of sale or as soon after as the officer holding the sale directs and in default of payment, the property shall forthwith be resold. (2) On payment of the purchase-money, the officer holding the sale shall grant a certificate specifying the property purchased, the price paid and the name of the purchaser, and the sale shall become absolute.  ....
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....attached under this Schedule, the attachment shall relate back to, and take effect from, the date on which the notice to pay the arrears, issued under this Schedule, was served upon the defaulter. SALE Sale and proclamation of sale. 52. (1) The Tax Recovery Officer may direct that any immovable property which has been attached, or such portion thereof as may seem necessary to satisfy the certificate, shall be sold. (2) Where any immovable property is ordered to be sold, the Tax Recovery Officer shall cause a proclamation of the intended sale to be made in the language in use in the district. Contents of proclamation. 53. A proclamation of sale of immovable property shall be drawn up after notice to the defaulter, and shall state the time and place of sale, and specify as fairly and accurately as possible— (a) the property to be sold; (b) the revenue, if any, assessed upon the property or any part thereof; (c) the amount for the recovery of which the sale is ordered; (d) the reserve price, if any, below which the pro....
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....default of payment within the period mentioned in paragraph 57, the deposit may, if the Tax Recovery Officer thinks fit, after defraying the expenses of the sale, be forfeited to the Government, and the property shall be resold, 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. Authority to bid. 59. (1) Where the sale of a property, for which a reserve price has been specified under clause (d) of paragraph 53, has been postponed for want of a bid of an amount not less than such reserve price, it shall be lawful for an Assessing Officer, if so authorised by the Chief Commissioner or this Commissioner in this behalf, to bid for the property on behalf of the Central Government at any subsequent sale. (2) All persons bidding at the sale shall be required to declare, if they are bidding on their own behalf or on behalf of their principles. (3) The bid shall be rejected if the person bidding on behalf of his principal fails to deposit the authority. (4) Where the Assessing Officer referred to in sub-paragraph (1) is declared to be the purchaser of the....
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....raph shall be disallowed unless the applicant deposits the amount recoverable from him in the execution of the certificate. Setting aside sale where defaulter has no saleable interest. 62. At any time within a period of thirty days of the sale, the purchaser may apply to the Tax Recovery Officer to set aside the sale on the ground that the defaulter had no saleable interest in the property sold. Confirmation of sale. 63. (1) Where no application is made for setting aside the sale under paragraphs 60 and 61 or where such an application is made and disallowed by the Tax Recovery Officer, the Tax Recovery Officer shall (if the full amount of the purchase money has been paid) make an order confirming the sale and thereupon, the sale shall become absolute. (2) Where application is made and allowed, and where, in the case of an application made to set aside the sale on deposit of the amount and penalty and charges, the deposit is made within a period of thirty days from the date of the sale, the Tax Recovery Officer shall make an order setting aside the sale. (3) No order under sub-paragraph (2) shall be made unless notice of the app....
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....more persons, of whom one is a co-sharer, respectively, bid the same sum for such property or for any lot, the bid shall be deemed to be the bid of the co-sharer. Acceptance of property in satisfaction of amount due from the defaulter. 69. (1) Without prejudice to the provisions contained in this Part, an Assessing Officer, duly authorised by the Chief Commissioner or the Commissioner in this behalf, may accept in satisfaction of the whole or any part of the amount due from the defaulter the property, the sale of which has been postponed for the reason mentioned in sub-paragraph (1) of paragraph 59, at such price as may be agreed upon between the Assessing Officer and the defaulter. (2) Where any property is accepted under sub-paragraph (1), the defaulter shall deliver possession of such property to the Assessing Officer and on the date the possession of the property is delivered to the Assessing Officer, the property shall vest in the Central Government and the Central Government shall, where necessary, intimate the concerned Registering Officer appointed under the Registration Act, 1908, accordingly. (3) Where the price of the property a....
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....operty is less than 180 days, such remaining period shall be extended to 180 days and the aforesaid period of limitation shall be deemed to be extended accordingly. (5) Where the sale of immovable property is not made in accordance with the provisions of sub-paragraph (1), the attachment order in relation to the said property shall be deemed to have been vacated on the expiry of the time of limitation specified under this paragraph. PART IV PROCEDURE FOR DISTRAINT Procedure for distraint. 71. Where any distraint and sale of movable property are to be effected by any Assessing Officer or Tax Recovery Officer authorised for the purpose, such distraint and sale shall be made, as far as may be, in the same manner as attachment and sale of any movable property attachable by actual seizure, and the provisions of this Schedule relating to attachment and sale shall, so far as may be, apply in respect of such distraint and sale. PART V APPOINTMENT OF RECEIVER Appointment of receiver for business. 72. (1) Where the property of a defaulter consists of a business, the Tax Recovery Officer may attach the business and appoint a person as receiver....
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....he drawing up of the certificate by the Tax Recovery Officer, dishonestly transferred, concealed, or removed any part of his property; or (b) that the defaulter has, or has had since the drawing up of the certificate by the Tax Recovery Officer, the means to pay the arrears or some substantial part thereof and refuses or neglects or has refused or neglected to pay the same. (3) Notwithstanding anything in sub-paragraph (1), a warrant for the arrest of the defaulter may, be issued by the Tax Recovery Officer, if he is satisfied, by affidavit or otherwise, that the defaulter is likely to abscond, or leave the local limits of the jurisdiction of the Tax Recovery Officer, with the object, or effect, of delaying the execution of the certificate. (4) The Tax Recovery Officer may issue a warrant for the arrest of the defaulter if appearance is not made in obedience to a notice issued and served under sub-paragraph (1). (5) A warrant of arrest issued by a Tax Recovery Officer under sub-paragraph (3) or sub-paragraph (4) may also be executed by any other Tax Recovery Officer within whose jurisdiction the defaulte....
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.... from prison. 80. (1) Every person detained in the civil prison in execution of a certificate may be so detained— (a) where the certificate is for a demand of an amount exceeding two hundred and fifty rupees, for a period of six months; and (b) in any other case, for a period of six weeks. (2) The person so detained shall be released from detention— (a) on the amount mentioned in the warrant for his detention being paid to the officer-in-charge of the civil prison, or (b) on the request of the Tax Recovery Officer on any ground other than the grounds mentioned in paragraphs 81 and 82. (3) A defaulter released from detention under this paragraph shall not, merely by reason of his release be discharged from his liability for the arrears but shall not liable to be rearrested under the certificate in execution of which he was detained in the civil prison. Release. 81. (1) The Tax Recovery Officer may order the release of a defaulter who has been arrested in execution of a certificate upon being satisfied tha....
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....oes not appear in public, shall be entered into unless the officer authorised to make the arrest has given notice to her that she is at liberty to withdraw and has given her reasonable time and facility for withdrawing. Prohibition against arrest of women or minors, etc. 84. The Tax Recovery Officer shall not order the arrest and detention in the civil prison of— (a) a woman; or (b) any person who, in his opinion, is a minor or of unsound mind. PART VII MISCELLANEOUS Officers deemed to be acting judiciadly. 85. Every Chief Commissioner, the Commissioner, Tax Recovery Officer or other officer shall while acting in the discharge of his functions under this Schedule, be deemed to be acting judicially within the meaning of the Judicial Officers Protection Act, 1850. Power to take evidence. 86. Every Chief Commissioner, Commissioner, Tax Recovery Officer or other officer acting under the provisions of this Schedule shall have the powers of a civil court while trying a suit for the purpose of receiving evidence, administering oaths, enforcing the attendance of witnesses and....
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....vil court. (3) The sums payable under this paragraph shall be deemed to be the costs in the proceeding but the defaulter shall not be detained in the civil prison or arrested on account of any sum so payable. Forms. 93. The Board may prescribe the form to be used for any order, notice, warrant, or certificate to be issued under this Schedule. Power to make rules. 94. (1) The Board may make rules, consistent with the provisions of this Code, for regulating the procedure to be followed by Chief Commissioners, Commissioners, Tax Recovery Officers and other officers acting under this Schedule. (2) In particular, and without prejudice to the generality of the power conferred by sub-paragraph (1), such rules may provide for all, or any of the following matters, namely:— (a) the area within which Chief Commissioners, Commissioners or Tax Recovery Officers may exercise jurisdiction; (b) the manner in which any property sold under this Schedule may be delivered; (c) the execution of a document or the endorsement of a negotiable in....