Protective relief in Section 17 proceedings: auction confirmation restrained until the Tribunal decides the pending application.

Where a Section 17 application was already pending before the DRT and notice had been fixed after the scheduled auction, the Court protected the statutory remedy by directing expeditious disposal of the application. It also restrained the secured creditors from confirming the auction until the Tribunal decided the matter, so that the remedy would not become ineffective before adjudication.

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Issues: Whether directions were required to ensure expeditious consideration of the petitioner's application under Section 17 and to restrain confirmation of the auction until such application was decided.

Analysis: The application under Section 17 was already pending before the Debt Recovery Tribunal and notice had been issued for a date after the scheduled auction. In view of the apprehension that the statutory remedy might become ineffective if the auction was confirmed before adjudication, the Court found it appropriate to protect the petitioner's remedy by requiring prompt disposal of the application. The Court also directed that the secured creditors should not confirm the auction until the Tribunal decided the application.

Conclusion: The petitioner was granted protective relief, and the Tribunal was directed to decide the Section 17 application expeditiously while the auction was not to be confirmed meanwhile.

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