Secured creditors and attachment: Tribunal stayed the order while allowing the resolution process to continue.

The Tribunal, on a prima facie view that the properties were already encumbered by mortgage, hypothecation and pledge in favour of banks, treated the lenders as secured creditors and noted that the outstanding dues involved public money. It considered that delay in the borrowers' recovery process could prejudice realisation of security and that continued attachment should not block the resolution process. The operation of the order confirming attachment was stayed until the next hearing, the resolution process was allowed to continue, and the properties were not to be finally disposed of without the Tribunal's leave.

---

---

Issues: Whether the operation of the order confirming attachment of the mortgaged, hypothecated and pledged properties should be stayed pending final hearing of the appeal.

Analysis: The properties in question were shown to be subject to mortgage, hypothecation, pledge and guarantee arrangements in favour of the banks. The Tribunal noted that the banks were secured creditors and that the outstanding dues were public money. It also observed that the borrowers' trial and recovery process could take considerable time, and that continued attachment would impede the lenders' ability to realise their security. On that prima facie assessment, the Tribunal held that the resolution process should not be blocked.

Conclusion: The operation of the impugned order was stayed till the next date of hearing, while the resolution process was permitted to continue, and the properties were not to be finally disposed of without leave of the Tribunal.

---