law: The Small Industries Development Bank of India Act, 1989 
  41. Special provisions for
  
  enforcement of claims by Small Industries Bank 
  1.     
  
    Where
  
  an industrial concern in the small-scale sector, in breach of any agreement,
  
  makes any default in repayment of any loan or advance or any installment
  
  thereof or in meeting it obligations in relation to any guarantee given by the
  
  Small Industries Bank or otherwise fails to comply with the terms of its
  
  agreement with that Bank, or where the Small-scale Industries Bank requires any
  
  industrial concern in the small-scale sector to make repayment of any loan or
  
  advance under section 40 and such industrial concern fails to make such
  
  repayment, then, without prejudice to the provisions of section 38 of this Act
  
  and section 69 of the Transfer of Property Act, 1882 (4 of 1882), any officer
  
  of that Bank, generally or specially authorised by that Bank in this behalf,
  
  may apply to the Court for one or more of the following reliefs, namely:-
  a.     
  
    For
  
  an order for the sale of the property assigned, charged, hypothecated, mortgaged
  
  or pledged to that Bank a security for the loan or advance; or
  b.    
  
    For
  
  enforcing the liability of any surety; or
  c.     
  
    For
  
  an ad interim injunction restraining the industrial concern in the small-scale
  
  sector from transferring or removing its machinery, plant or equipment from the
  
  premises of such industrial concern without the permission of the Small
  
  Industries Bank, where such transfer or removal is apprehended.
  1.     
  
  
  2.     
  
    An
  
  application under sub-section (1) shall state the nature and extent of the
  
  liability of the industrial concern in the small-scale sector to the Small
  
  Industries Bank, the ground on which it is made and such other particulars as
  
  may be necessary for obtaining the relief prayed for.
  3.     
  
    Where
  
  the application is for the reliefs mentioned in clause (a) and clause (c) of
  
  sub-section (1), the Court shall pass an ad interim order attaching the
  
  security, or so much of the property of the industrial concern in the
  
  small-scale sector as would on being sold realise in its estimation an amount
  
  equivalent in value to the outstanding liability of such industrial concern to
  
  the Small Industries Bank together with costs of the proceedings taken under
  
  this section with or without an ad interim injunction restraining such
  
  industrial concern from transferring or removing it s machinery, plant or
  
  equipment.
  4.     
  
    Where
  
  the application is for the relief mentioned in clause (b) of sub-section (1),
  
  the Court shall issue a notice calling upon the surety to show cause on a date
  
  to be specified in the notice as to why the liability should not be enforced.
  5.     
  
    Before
  
  passing any order under sub-section (3), or issuing a notice under sub-section
  
  (4), the Court may ,if it thinks fit, examine the officer making the
  
  application.
  6.     
  
    At
  
  the same time as it passes an order under sub-section (3), the Court shall
  
  issue to the industrial concerning the small-scale sector or to the owner of
  
  the security attached, a notice accompanied by copies of the order, the
  
  application and the evidence, if any, recorded by the Court calling upon such
  
  industrial concern or owner, to show cause on a date to be specified in the
  
  notice, as to why the ad interim order of attachment should be made absolute or
  
  the injunction confirmed.
  7.     
  
    If
  
  no cause is shown, on or before the date specified in the notice under
  
  sub-section (4), the Court shall forthwith order the enforcement of the
  
  liability of the surety.
  8.     
  
    If
  
  no cause is shown on or before the date specified in the notice under
  
  sub-section (6), the Court shall forthwith make the ad interim order absolute
  
  and direct the sale of the attached property or confirm the injunction.
  9.     
  
    If
  
  cause is shown, the Court shall proceed to investigate the claim of the Small
  
  Industries Bank in accordance with the provisions contained in the Code of
  
  Civil Procedure, 1908 (5 of 1908), in so far as such provisions may be applied
  
  thereto.
  10.  
  
    After
  
  making an investigation under sub-section (9), the Court may-
  a.     
  
    Confirm
  
  the order of attachment and direct the sale of the attached property;
  b.    
  
    Vary
  
  the order of attachment so as to release a portion of the property from
  
  attachment and direct the sale of the remainder of the attached property;
  c.     
  
    Release
  
  the property from attachment;
  d.    
  
    Confirm
  
  or dissolve the injunction; or
  e.     
  
    Direct
  
  the enforcement of the liability of the surety or reject the claim made in this
  
  behalf:
  Provided that when making an order under
  
  clause (c)making an order rejecting the claim to enforce the liability of the
  
  surety under clause (e), the Court may make such further order as it think
  
  necessary to protect the interests of the Small Industries Bank and may
  
  apportion the cost of the proceedings in such manner as it think fit:
  Provided further that unless the Small
  
  Industries Bank intimates to the Court that it will not appeal against any
  
  order releasing any property from attachment or rejecting the claim to enforce
  
  the liability of the surety, such order shall not be given effect to, until the
  
  expiry of the period fixed under sub-section (12) within which an appeal may be
  
  preferred or, if an appeal is preferred, unless the Court empowered to hear
  
  appeals from the decisions of the said Court otherwise directs, until the
  
  appeal is disposed of.
  1.  
  
  
  2.  
  
  
  3.  
  
  
  4.  
  
  
  5.  
  
  
  6.  
  
  
  7.  
  
  
  8.  
  
  
  9.  
  
  
  10.  
  11.  
  
    An
  
  order of attachment or sale of property under this section shall be carried
  
  into effect as far as practicable in the manner provided in the Code of Civil
  
  Procedure, 1908 (5 of 1908), for the attachment or sale of property in
  
  execution of a decree as if the Small Industries Bank were the decree holder.
  12.  
  
    Any
  
  party aggrieved by an order under sub-section (7), sub-section (8) or
  
  sub-section (10) may, within thirty days from the date of the order, appeal to
  
  the Court empowered to hear appeals from the decisions of the Court which
  
  passed the order and upon such appeal the appellate Court may, after hearing
  
  the parties, pass such orders as it thinks proper.
  13.  
  
    Where
  
  proceedings for liquidation in respect of an industrial concern in the
  
  small-scale section have commenced before an application is made under
  
  sub-section (1), nothing in this section shall be construed as giving to the
  
  Small Industries Bank any preference over the other creditors of such
  
  industrial concern not conferred on it by any other law.
  14.  
  
    For
  
  the removal of doubts, it is hereby declared that any Court competent to grant
  
  an ad interim injection under this section shall also have the power to appoint
  
  a receiver and to exercise all the other powers incidental thereto.