Section 18C. Right to lodge a caveat

5[ 18C. Right to lodge a caveat.— (1) Where an application or an appeal is expected to be made or has been made under sub-section (1) of section 17 or section 17A or sub-section (1) of section 18or section 18B, the secured creditor or any person claiming a right to appear before the Tribunal or the Court of District Judge or the Appellate Tribunal or the High Court, as the case may be, on the hearing of such application or appeal, may lodge a caveat in respect thereof. (2) Where a caveat has been lodged under sub-section (1),— (a) the secured creditor by whom the caveat has been lodged (hereafter in this section referred to as the caveator) shall serve notice of the caveat by registered post, acknowledgement due, on the person by whom the application has been or is expected to be made under sub-section (1); (b) any person by whom the caveat has been lodged (hereafter in this section referred to as the caveator) shall serve notice of the caveat by registered post, acknowledgement due, on the person by whom the application has been or is expected to be made under sub-section (1). (3) Where after a caveat has been lodged under sub-section (1), any application or appeal is filed before the Tribunal or the court of District Judge or the Appellate Tribunal or the High Court, as the case 1. Subs. by Act 30 of 2004, s. 12, for "under section 17, may prefer an appeal" (w.e.f. 21-6-2002). 2. Ins. by s. 12, ibid . (w.e.f. 21-6-2002). 3. Ins. by s. 12, ibid . (w.e.f. 11-11-2004). 4. Ins. by s. 13, ibid . (w.e.f. 11-11-2004). 5. Ins. by Act 1 of 2013, s. 7 (w.e.f. 15-1-2013). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. may be, the Tribunal or the District Judge or the Appellate Tribunal or the High Court, as the case may be, shall serve a notice of application or appeal filed by the applicant or the appellant on the caveator. (4) Where a notice of any caveat has been served on the applicant or the Appellant, he shall periodically furnish the caveator with a copy of the application or the appeal made by him and also with copies of any paper or document which has been or may be filed by him in support of the application or the appeal. (5) Where a caveat has been lodged under sub-section (1), such caveat shall not remain in force after the expiry of the period of ninety days from the date on which it was lodged unless the application or appeal referred to in sub-section (1) has been made before the expiry of the said period.] STATE AMENDMENT Jammu and Kashmir (UT).— Amendment of section 18(C )—(i) in sub-section (1), omit "or section 17A", "or section 18B", "or the court of District Judge" and "or the High Court"; and (ii) in sub-section (3), omit "or the court of District Judge" and "or the High Court". [ Vide Order No. 3807(E) dated 26th October, 2020, the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020 (w.e.f. 26-10-2020) Ladakh (UT).— Amendment of section 18(C )— (a) In sub-section (1), omit,— (i) "or section 17A" and "or section 18B"; and (ii) "or the court of District Judge" and "or the High Court" whenever they occur; (b) in sub-section (3) omit "or the court of District Judge" and "or the High Court". [ Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] 1[19. Right of borrower to receive compensation and costs in certain cases.— If the Debts Recovery Tribunal or the Court of District Judge, on an application made under section 17 or section 17A or the Appellate Tribunal or the High Court on an appeal preferred under section 18 or section 18A, holds that the possession of secured assets by the secured creditor is not in accordance with the provisions of this Act and rules made thereunder and directs the secured creditors to return such secured assets to the 2[concerned borrowers or any other aggrieved person, who has filed the application under section 17 or section 17A or appeal under section 18 or section 18A, as the case may be, the borrower or such other person] shall be entitled to the payment of such compensation and costs as may be determined by such Tribunal or Court of District Judge or Appellate Tribunal or the High Court referred to in section 18B.] STATE AMENDMENT Union Territory of Jammu and Kashmir Amendment of section 19.— (i) Omit "or the Court of District Judge", occurring at both the places; (ii) Omit "or section 17A" occurring at both the places; (iii) Omit "or the High Court; (iv) Omit "or section 18A" occurring at both the places; and (v) Omit "or the High Court referred to in section 18B" occurring at the end. Insertion of new section : — After section 19, insert —