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6. After Order 17, rule 2 there shall be inserted the following new rule—
2A.—(1) Where a judgment debtor whose goods have been seized, or are intended to be seized, by a sheriff under a writ of execution claims that such goods are not liable to execution by virtue of section 138(3A) of the Act(1), he must within 5 days of the seizure give notice in writing to the sheriff identifying all those goods in respect of which he makes such a claim and the grounds of such claim in respect of each item.
(2) Upon receipt of a notice of claim under paragraph (1), the sheriff must forthwith give notice thereof to the execution creditor and to any person who has made a claim to, or in respect of, the goods under rule 2(1) and the execution creditor and any person who has made a claim must, within 7 days of receipt of such notice, inform the sheriff in writing whether he admits or disputes the judgment debtor’s claim in respect of each item.
(3) The sheriff shall withdraw from possession of any goods in respect of which the judgment debtor’s claim is admitted or if the execution creditor or any person claiming under rule 2(1) fails to notify him in accordance with paragraph (2) and the sheriff shall so inform the parties in writing.
(4) Where the sheriff receives notice from
(a)the execution creditor or
(b)any such person to whom notice was given under paragraph (2),
that the claim or any part thereof is disputed, he must forthwith seek the directions of the Court and may include therein an application for an order restraining the bringing of any action against him for, or in respect of, his having seized any of those goods or his having failed so to do.
(5) The sheriff’s application for directions under paragraph (4) shall be made by summons in the action and, on the hearing of the application, the Court may
(a)determine the judgment debtor’s claim summarily or
(b)give such directions for the determination of any issue raised by such claim as may be just.
(6) A master and a district judge of a district registry shall have power to make an order of the kind referred to in paragraph (4) and the reference to master shall be construed in accordance with rule 4.”.
Section 138(3A) of the Supreme Court Act 1981 (c. 54) was inserted by section 15(1) of the Courts and Legal Services Act 1990 (c. 41), Section 15(1).
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