Regulation 9 - Modes of Recovery - CCI (Manner Of Recovery Of Monetary Penalty) Regulations, 2011

9. Modes of Recovery. Where the enterprise in default fails to pay the penalty within the stipulated time as mentioned in the recovery certificate, the recovery officer shall proceed to recover the penalty in the following manner, (a) the recovery officer shall at any time after issuance of recovery certificate require any enterprise in default from whom penalty is due or may become due or any other enterprise who holds or may subsequently hold money for or on account of the enterprise in default, to pay to the Commission either forthwith upon the penalty becoming due or within the time specified in the recovery certificate so much of the money as is sufficient to pay the penalty due to the enterprise in default. If such other enterprise fails to pay the said amount in lieu of the penalty then such enterprise shall also be treated in the same manner as an enterprise in default; (b) a recovery certificate may be issued to any enterprise who holds or may subsequently hold any money for or on account of the enterprise in default jointly with any other enterprise and for the purposes of this regulation, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be equal; (c) every enterprise to whom a recovery certificate is issued shall be bound to comply with such certificate, and, in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy, or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary; (d) any claim respecting any property, in relation to which a recovery certificate has been issued, arising after the date of the demand notice shall be void as against any demand contained in the recovery certificate; (e) where an enterprise to whom a recovery certificate has been issued objects to it by a statement on oath that the sum demanded or any part thereof is not due to the enterprise in default or that it does not hold any money for or on account of the enterprise in default, then, nothing contained in these regulations shall be deemed to require such enterprise to pay any such sum or part thereof, as the case may be: Provided that such assertion of the enterprise is to be brought to the notice of the Commission for its consideration; (f) the recovery officer may apply, for payment of the amount sufficient to discharge the penalty due to enterprise in default, to the court in whose custody there is money belonging to such enterprise; (g) where an enterprise in default has property in a country outside India (being a country with which the Central Government has entered into an agreement for the recovery of penalty under the Act and the corresponding law in force in that country), the Commission may propose to that country to take such action thereon as the Commission may deem appropriate having regard to the terms of the said agreement with such country and to remit any sum so recovered to the Commission, and thereafter the Secretary shall take appropriate steps to deposit the same in the account earmarked for the purpose; (h) where during the pendency of any proceeding or after the decision under the Act but before the service of the notice under regulation 3, any enterprise in default creates a charge or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of its assets in favour of any other person or enterprise, such charge or transfer shall be void as against any claim in respect of any penalty payable by such enterprise in default as a result of the decision of the said proceeding or otherwise: Provided that such charge or transfer shall not be void if it is made, (i) for adequate consideration and without notice of the pendency of such proceeding; or (ii) with the previous permission of the Commission.