THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE NOUSHAD ALI WRIT PETITION No. 12452 of 2009 Dated: 3-3-2010 Between: ING Vysya Bank Ltd., Nizamshahi Road, Hyderabad, rep. by its Authorised Officer …Petitioner and G.Umashanker and others …Respondent ORAL ORDER: (Per Hon’ble Sri Justice Goda Raghuram) Heard Sri Satyanarayana, learned counsel for the petitioner and Sri M.S.Ramchandra Rao, learned counsel for respondents 1 and 2. The order dated 22-5-2009 of the Debts Recovery Tribunal, Hyderabad (the Tribunal) in I.A.No. 326 of 2009 in S.A.No. 91 of 2009 is challenged in this writ petition. By the said order, the learned Tribunal allowed I.A.No. 326 of 2009 filed by respondents 1 and 2 seeking stay of all further proceedings including their dispossession from the petition schedule property, pursuant to an auction sale notice dated 20-2-2009 issued by the writ petitioner-Bank under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act’). In fact, on 9-3-2009 an interim stay was initially grantedby the Tribunal, which was confirmed by the order impugned herein. The substantive appeal S.A.No. 91 of 2009 filed by the non-official respondents, is however pending before the Tribunal. Sri Satyanarayana, learned counsel for the petitioner contends that the conclusions recorded by the learned Tribunal in the impugned order for making the interim stay absolute are fallacious and perverse and contrary to the settled positions of law. It is contended by Sri Satynarayana that the learned Tribunal erroneously held that its earlier decision dated 31-1-2009 dismissing S.A.No. 148 of 2004 does not operate as res judicata to bar S.A.No. 91 of 2009. It is further contended on behalf of the petitioner-Bank that the Tribunal had erred in concluding that in view of the provisions of sub-section 3 and 4 of Section 17 of the Act, once an appeal is filed the secured creditor must stop all further proceedings under the Act. The contentions urged on behalf of the petitioner with regard to the vitality of the observations and conclusions recorded in the impugned order by the learned Tribunal are eminently arguable. However, we are not inclined to adjudicate on whether the Tribunal erred in recording conclusions on the aspect of the bar of res judicata operating on S.A.No. 91 of 2009, in view of the earlier order dated 31- 1-2009 in S.A.No. 148 of 2004 nor as to whether the Tribunal was right in inferring an obligation of the secured creditor to desist all further process once an appeal is filed under Section 17 of the Act. As these observations are recorded by the Tribunal in an interlocutory order confirming the initial stay granted by it, these observations would not in any manner limit to diminute the obligations of the learned Tribunal to consider whether the bar of res judicata operates, while determining finally S.A.No. 91 of 2009. Whether the provisions of Section 17 (3) and (4) disable initiation of further proceedings by the secured creditor, during the pendency of an appeal filed under Section 17 of the Act would also have to be considered when the appeal is finally heard. On the aforesaid analysis, the writ petition is disposed of. The learned Tribunal, Hyderabad is requested to expeditiously and in any event within thirty days from the date of receipt of a copy of this order, consider and dispose of S.A.No. 91 of 2009. Sri Satyanaranayana, learned counsel for the petitioner-Bank and Sri M.S.Ramchandra Rao, learned counsel for respondents 1 and 2 submit on behalf of the respective parties that the parties would cooperate to ensure the disposal of the appeal by the Tribunal within the time stipulated herein. The learned Tribunal shall proceed to hear and determine S.A.No. 91 of 2009 without being influenced in any manner, by any of the observations recorded by it in the order impugned herein including on the aspect of res judicata or the interpretation of the provisions of Section 17 (3) and (4) of the Act. There shall be no order as to costs. _________________________ GODA RAGHURAM, J _________________________ NOUSHAD ALI, J 3rd March, 2010. GRR