Negotiable instruments and shares in corporations
Full Text
Where the property to be sold is a negotiable instrument or a share in a corporation, the Court may, instead of directing the sale to be made by public auction, authorize the sale of such instrument or share through a broker.
Plain English Summary
Authorizes the executing court to sell attached shares, debentures, or negotiable instruments through registered stockbrokers at prevailing market rates rather than via clumsy public auction.
Key Legal Elements
- Discretionary Departure from Auction: Alternative to public auction for market-traded assets.
- Sale Through Registered Broker: Executed via SEBI registered stockbrokers or institutional brokers.
- Realization at Market Price: Avoids undervaluation associated with court-house auctions.
Practical Note
Liquidating Demat Shares in Execution: When listed equity shares of the judgment-debtor are attached in a Depository Account (NSDL/CDSL), file an application under Rule 76 praying for the appointment of an institutional stockbroker to sell the shares on the NSE/BSE and remit the net proceeds directly to the court treasury.
हिंदी पाठ
जहां बेची जाने वाली संपत्ति कोई परक्राम्य लिखत (Negotiable instrument) या किसी निगम में अंश (Share in a corporation) है, वहां न्यायालय लोक नीलाम द्वारा विक्रय का निदेश देने के बजाय ऐसी लिखत या अंश का विक्रय किसी दलाल (Broker/Stockbroker) के माध्यम से कराने के लिए प्राधिकृत कर सकेगा।