(1) When any sale of either movable or immovable property is ordered under the provisions of this Chapter, the officer concerned shall issue a proclamation of the intended sale, specifying the time and place of sale, together with any other particulars as he may think necessary. Such proclamation shall be made by beat of drum at such places and in such other manner as the Municipal Commissioner or Chief Officer may direct.

(2) A notice of the intended sale of immovable property and of the time and place thereof shall be affixed on the notice board of the municipal office, the office of the Tahsildar of the taluk in which the immovable property is situated and at such other places as may be prescribed. In the case of movable property, a notice of the intended sale shall be affixed on the notice board of the municipal office and at such other places as may be prescribed. The notice shall also be published in such other manner as may be prescribed.

(3) No sale shall be held on a public holiday nor until the expiration of at least thirty days in the case of immovable property or seven days in the case of movable property, from the latest date on which any of the notices referred to in sub-section (2) have been published.

(4) If the defaulter or any person on his behalf pays the sum due and all other charges, at any time before the property is knocked down, to the officer conducting the sale, the sale shall be stayed.

(5) In respect of sale of movable property (other than property sold under sub-section (1) of section 144), the person who is declared to be the purchaser shall deposit immediately twenty-five per cent of the amount of his bid, and in default of such deposit, the property shall forthwith be again put up for auction and sold. The full amount of purchase money shall be paid by the purchaser on the next working day after the day on which he is informed of the sale having been confirmed by the Municipal Commissioner or Chief Officer. On payment of such full amount of the purchase money, the purchaser shall be granted a receipt for the same and the sale shall become absolute as against all persons whatsoever.

(6) In respect of sale of immovable property, the person who is declaredto be the purchaser shall deposit twenty-five per cent of the amount of his bid, and, in default of such deposit, the property shall forthwith be again put up for auction and sold. The full amount of purchase money shall be paid by the purchaser before the sixteenth day from that on which the sale of the property took place.

(7) In default of payment of the full amount of purchase money withinthe period specified under sub-section (5) or sub-section (6), the Municipal Commissioner or the Chief Officer may in his discretion direct that the deposit, after deducting therefrom the expenses of the sale, in whole or in part, shall be forfeited to the municipal council, and that the property shall be resold, and thereupon the deposit shall stand forfeited as directed and the defaulting purchaser shall forfeit all claim to the property or to any part of the sum for which it may be subsequently sold. If the proceeds of the resale which is held by reason of the default of the purchaser is less than the price bid by such defaulting purchaser, the difference shall be recoverable in the manner provided in this Chapter from him by the municipal council as an amount due from him to the municipal council.

(8) Every resale of property in default of payment of the purchase money, or after the postponement of the first sale, shall, except when such resale takes place forthwith, be made after the issue of a fresh notice in the manner specified in this section for original sales.

(9) Any person owning or claiming any interest in immovable propertysold under this section may at any time within thirty days from the date of the sale deposit in the municipal office, -

(i) a sum equal to ten per cent of the purchase money; and

(ii) a sum equal to the sum due for which the immovable property was sold together with interest at nine per cent per annum thereon and the expenses of attachment, management, and sale and other costs due in respect of the sum due; and may apply to the Municipal Commissioner or Chief Officer to set aside the sale. On such deposit and application being made, the Municipal Commissioner or the Chief Officer shall by order set aside the sale and shall repay to the purchaser the purchase money deposited by him together with the ten per centum deposited by the applicant:

Provided that if two or more persons make such deposit and application, the application of the first depositor shall be accepted:

Provided further that if the applicant is also an applicant under sub-section (10), his application under this sub-section shall not be considered unless he withdraws his application under sub-section (10).

(10) At any time within thirty days from the date of sale of immovable property, an application may be made to the Municipal Commissioner or Chief Officer to set aside the sale on the ground of some material irregularity, or mistake or fraud, in publishing or conducting it; but save as otherwise provided in sub-section (11), no sale shall be set aside on the ground of any such irregularity or mistake, unless the applicant proves to the satisfaction of the Municipal Commissioner or Chief Officer that he has sustained substantial injury by reason thereof. If the application is allowed, the Municipal Commissioner or Chief Officer shall set aside the sale and direct a fresh sale.

(11) On the expiration of thirty days from the date of sale, if no applications made under sub-section (9) or sub-section (10), or if an application made under sub-section (10) is rejected, the Municipal Commissioner or Chief Officer shall make an order confirming the sale:

Provided that if the Municipal Commissioner or Chief Officer considers that in the interest of justice the sale should be set aside for any reason, he may, for reasons to be recorded in writing and on such conditions as he may deem proper set aside the sale.

(12) Whenever the sale of any property is not confirmed or is set a side , the purchaser shall be entitled to refund of his deposit or purchase money, as the case may be.

(13) If any claim to any movable property distrained under this Chapter's made by any person, the Municipal Commissioner or Chief Officer shall after a summary enquiry, admit or reject the claim. If the claim is admitted wholly or partly, the property shall be dealt with accordingly. Except in so far as the claim is admitted, the property shall be sold and the title of the purchaser shall be good for all purposes, and the proceeds shall be disposable as provided in section 144.

(14) Where the municipal council itself purchases any immovable property under sub-section (16) it shall on payment by the defaulter within one year from the date of sale of the amount of bid offered by municipal council and the expenses of attachment, management, sale and other costs together with interest at nine per cent per annum thereon, reconvey the property to the defaulter.

(15) After sale of the immovable property by auction as aforesaid, the municipal Commissioner or Chief Officer shall put the person declared to be the purchaser in possession of the same and shall grant him a certificate to the effect that he has purchased the property to which the certificate refers.

(16) It shall be lawful for the municipal council to offer a bid in the caseof any immovable property put up for auction, provided the previous approval of the Deputy Commissioner is obtained to such bidding.

(17) The surplus of the sale proceeds, if any, shall immediately after the sale of the property be credited to the municipal fund, and notice of such credit shall be given at the same time to the owner or person in whose possession the property was at the time of distraint or attachment, and the same shall be refunded to such person on a written application if made within three years from the date of the notice. Any sum not claimed within three years from the date of such notice shall be the property of the municipal council.