The Sikkim Public Demands Recovery Act, 2006

Act 14 of 2006

24.06.2008

An Act to make provisions for the recovery of public demands in Sikkim. Be it enacted by the Legislature of Sikkim in the Fifty-seventh Year of the Republic of India as follows:-

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S.18 Protection to officer

No suit or other legal proceeding shall lie against a Certificate Officer for any act done or purported to have been done by him under the provisions of this Act.

S.19 Power to make rules

The State Government may make rules for the purpose of carrying out and giving effect to all or any of the provisions of this Act.

S.20 Repeal and Saving

(1) The Sikkim Public Demand Recovery Act, 1988 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken in exercise of the powers conferred by or under the provisions of that Act shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act as if this Act was in force on the day on which such thing was done or such action was taken.

S.21 Pending proceedings.

All proceedings pending under the existing law for recovery of public demand shall be deemed to have been proceedings under this Act and the Certificate Officer shall continue the proceedings as though they were initiated under this Act.

S.1 Short title, extent and commencement

(1) This Act may be called the Sikkim Public Demands Recovery (Amendment) Act, 2022.

(2) It shall extend to the whole of Sikkim.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.4 Amendment of Section 4

Sub-section (2) of the principal Act shall be substituted with the following, namely; -

“(2) Upon receipt of application referred to in sub-section (1),

(a) If the Certificate Officer is satisfied that the particulars set forth in the application are correct, he shall issue a notice demanding the amount due against whom the application has been made and calling upon him or her to remit within 7 (seven) days from the date of service of the notice mentioning the total amount due as per the application.
(b) In case of death of any Certificate Debtor or the Guarantor; the Certificate Officer may issue notice to his or her legal heirs.
(c) If the application, on scrutiny, is found to be defective and the defect noticed is formal in nature, the Certificate Officer may allow the party to rectify the same in his presence and if the said defect is not formal in nature, the Certificate Officer may allow the applicant such time to rectify the defect as de

S.5 Insertion of new Sections 4A, 4B, 4C and 4D

In the principal Act, after Section 4, the following sections shall be inserted, namely; -

“4A. Procedure after applications is made before the Certificate Officer.

(1) Summary procedure shall be adopted under this Act for adjudication of dispute. Evidence shall be taken on affidavit and cross examination shall not be permitted except in few deserving cases.

(2) The certificate debtor can file counter claim or claim of set off against the claimed amount.

(3) Where the Certificate Officer is satisfied that the amount due to the applicant is correct, the Certificate Officer may pass final order directing the Respondents to pay the amount. In case, the Respondents fails to pay the ordered amount, recovery certificate shall be ordered to be issued reflecting the names and address cited in the application which is then executed before the Certificate Officer or the Officer executing the decree under the provisions of this Act.

4B. Procedure for filing

S.6 Amendment of Section 5

In the principal Act, Section 5 shall be re-numbered as sub-section (1) of that section and after sub-section (1) as so re-numbered the following new sub-sections shall be inserted namely: -

“(2) Any notice or process to be issued by the Certificate Officer may be served by any of the following modes, namely;-

(a) notice shall be served or caused to be served to the debtors and guarantors personally, if he or she is present; or
(b) at the place where such debtor and guarantor ordinarily resides or carries on business or personally works for gain; or
(c) upon any adult member of his or her family of Certificate debtor or its guarantors or upon their authorized agent, or by speed post or by any means of electronic communication or by such courier services with acknowledgment due as are approved by the Certificate Officer; or
(d) by hand delivery (Dasti) through a process server; or
(e) if the Certificate Officer is satisfied tha

S.7 Insertion of new Section 6A and 6B.

In the principal Act, after section 6, the following new sections shall be inserted, namely: -

“6A. Procedure when only Certificate Holder appears.

Where the Certificate debtor and his or her guarantor fail to appear even after the notice was duly served upon him, the Certificate Officer may conduct the hearing ex-parte and may pass an appropriate order. For the purposes of the ex-parte hearing and disposal of the application, the following shall be observed: -

(a) where on the date fixed for hearing the Certificate debtor or his or her guarantor fails to appear despite the effective service of notice, the Certificate Officer may, in his discretion either adjourn the date of hearing or may pass an appropriate order ex-parte;
(b) where the application has been heard ex-parte against the Certificate debtor, such Certificate debtor may apply to the Certificate Officer for an order to set it aside and if such Certificate debtor, satisfies the Certifi

S.6B Procedure when only Certificate debtor appears.

Where the Certificate debtor appears but the Certificate holder does not appear then the Certificate Officer may conduct the hearing ex-parte and may pass an appropriate order:

Provided that if the Certificate holder by an application satisfies to the Certificate Officer that the non-appearance was not intentional or show sufficient cause to that effect, the Certificate Officer may restore the application upon such terms and costs as it thinks fit, and shall fix a day for proceeding of such application by issue of a notice to the Certificate debtor.”

S.8 Amendment of Section 7

(1) In the principal Act, in Section 7, in clause (a), for the words “Certificate Officer”, the word “District Collector or other Officer authorized by him/her to act on his/her behalf” shall be substituted. (2) In the principal Act, in Section 7, clause (b), shall be substituted namely: -

“(b) on filling of the certificate for execution, the District Collector shall execute the decree either by himself or he may transfer the same to the Additional District Magistrates or the Sub Divisional Magistrates for execution of the Certificate.”

S.9 Omission of Section 8

Section 8 of the principal Act shall be omitted.

S.10 Amendment of Section 9

In the principal Act, in Section 9-

(1) for the words “Certificate Officer” wherever they occur, the words “District Collector or other Officer authorized by him/her to act on his/her behalf” shall be substituted; and

(2) after the words “part of such” and before the words “his movable property”, the word “of” shall be inserted.

S.11 Amendment of Section 10

In the principal Act, in Section 10-

(1) for the word “Certificate Officer” the words “District Collector or other Officer authorized by him/her to act on his/her behalf” shall be substituted.

(2) after clause (b), the following new clauses shall be inserted namely:

“(c) by passing an order for taking physical possession of the property of the Certificate debtor or his or her guarantor(s) by the Certificate holder and transfer of title of the property in the name of the Certificate holder;

(d) by attachment or by freezing of all or any of the bank accounts of the Certificate debtor or his or her guarantor(s) maintained with any banks in India.”

S.12 Insertion of new Section 10 A

In the principal Act, after Section 10, the following section shall be inserted, namely:-

“10A. Execution proceeding.

(1) The execution of Certificate shall ordinarily be taken in the following manner, namely:-

(a) disposal of mortgaged immovable properties against which the loan has been secured by the Certificate debtor shall be first proceeded against, but nothing in this clause shall preclude the other properties both movable and immovable property being proceeded against simultaneously in case of necessity;

(b) if there is no immovable property of the Certificate debtor or if the sale proceeds of the immovable property or properties attached are insufficient to meet in full, the demand of the Certificate holder, then the other movable property of the Certificate debtor or his or her guarantor or other unencumbered immovable property belonging to the Certificate debtor including his or her guarantor, may be proceeded against.

(2) In case of se

S.13 Amendment of Section 12

In the Principal Act in Section 12; -

(1) For the words “Certificate Officer” whenever they occur, the words “District Collector or other Officer authorized by him/her to act on his/her behalf” shall be substituted;

(2) In sub-section (4), after clause (b), the following clauses shall be inserted, namely: -

“(c) in the case of immovable property, if the property is not sold on the first public auction, the District Collector or other Officer authorized by him/her to act on his/her behalf shall re-fix the reserve price of the property as it deems fit and necessary and call for second public auction;

(d) in case the immovable property is not sold in second auction attempt, the District Collector or other Officer authorized by him/her to act on his/her behalf may pass an order for taking physical possession of the immovable property by the Certificate holder by transfer of title on the property in favour of the Certificate holder and shall also pass an orde

S.14 Insertion of new Section 12A.

In the principal Act, after Section 12, the following new section shall be inserted, namely: -

“12A. Disposal of Proceeds of Execution.

(1) Whenever assets are realized, by sale or otherwise in execution of a certificate, they shall be disposed off in the following manner, namely; -
- (a) there shall be paid to the Certificate holder the costs incurred by him;
- (b) there shall, in next place, be paid to the Certificate holder the amount due to him under the certificate in execution of which the assets are realized;
- (c) if there remains any balance after the above payments, there shall be paid, to the Certificate holder therefrom any other amount recoverable under the procedure provided by this Act which may be due to him on the date on which the assets were realized;
- (d) the balance, if any, remaining after the payment of the amount, referred to in clause (c), shall be paid to the Certificate debtor; and
- (e)

S.15 Insertion of new Sections 13A

In the principal Act, after Section 13, the following sections shall be inserted, namely: -

“13A. Attachment of salary or allowances of public officer or of servant of a local authority.

Where the movable property to be attached is the salary or allowance or wages of a public officer or of a servant of local authority or a firm or a company, the District Collector or other Officer authorized by him/ her to act on his/her behalf may order in a prescribed form, order the amount shall, subject to the provisions of Section 60 of the Code of Civil Procedure, 1908 (5 of 1908), be deducted or realized from such salary or allowance or wages either in one payment or by monthly installments as the District Collector or other Officer authorized by him/her to act on his/her behalf may direct and upon notice of the order, the officer or other person whose duty is to disburse such salary or allowances or wages shall withhold and remit to the District Collector or other Officer auth

S.16 Insertion of new Sections 14A, 14B, 14C, 14D, 14E and 14F.

In the principal Act, after Section 14, the following sections shall be inserted, namely: -

“14A. Procedure for attachment and sale of immovable property.

In the attachment and sale of immovable property, the following shall be observed, namely: -

(a) where the District Collector or other Officer authorized by him/her to act on his/her behalf is satisfied and there is reason to believe that the Certificate debtor with intent to defeat or delay the execution proceedings is about to dispose off the whole or any part of his/her property, the demand notice issued by the Certificate Officer under Section 4 shall not allow any time to the Certificate debtor for the payment of the amount due by him/her. The order shall be made stating that the property of the Certificate debtor shall be attached forthwith;
(b) if the Certificate debtor fails to pay the amount specified in the demand notice within the time allowed, the District Collector or other Officer

S.17 Insertion of Section 15 A.

In the principal Act, after Section 15, the following section shall be inserted, namely: -

“15A. Date and place of hearing to be notified.

(1) The District Collector or other Officer authorized by him/her to act on his/her behalf shall notify the parties the date and place of hearing of the application filed under Section 15 of the Act in such manner as it may deem fit.

S.1. Short title, extent and commencement.

(1) This Act may be called the Sikkim Public Demands Recovery (Amendment) Act, 2025.

(2) It shall extend to the whole of Sikkim.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.2 Insertion of new clause (aa) in Section 2.

In the Sikkim Public Demands Recovery Act, 2006, (hereinafter referred to as the "Principal Act") in section 2, after clause (a) the following shall be inserted, namely,-

"(aa) "Appellate Authority" means the Appellate Authority established under section 6C."

S.3 Insertion of new section 6C.

In the Principal Act, after section 6B, the following new section shall be inserted, namely: -

"6C Appeal:- (1) An appeal from any original order made under this Act shall lie if;

(a) the order is made by any Certificate Officer below the rank of District Magistrate as appointed by the Government as per section 2(e) of the Act, to the District Collector;
(b) the order is made by a Certificate Officer who is a District Collector, to the Secretary, Land Revenue and Disaster Management Department:

Provided that no appeal shall be entertained unless the borrower has deposited with the Appellate Authority or the Certificate holder fifty percent of the total amount of dues determined by the Certificate Officer:

Provided further that no appeal shall lie from an order setting aside a sale made under section 15.

(2) Every such appeal shall be presented within 30(thirty) days from the date of the order appealed against.

(3) Pend