Interpretation of the amended provisions of Sections 13 and 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter for brevity’s sake referred to as ‘the Securitization Act’, is involved in this reference made to the larger Bench. By a common order passed in W.P.Nos. 37148 & 37534 of 2007, the Division Bench has referred the following questions which fall for our determination:-

(i)Whether even where no stay is prayed for by the Borrower, during pendency of the proceedings under Section 17 before the Debt Recovery Tribunal, the Secured Creditor can proceed to auction the secured asset even before a declaration envisaged under Section 17(4) of the SARFAESI Act as made by the Debt Recovery Tribunal?

(ii)Whether for granting any stay of auction, the Debt Recovery Tribunal can impose any condition relating to deposit?

(iii)Whether, even before finalisation of the proceedings under Section 17 of the SARFAESI Act, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal has any incidental or ancillary power to pass any interim order relating to restoration of possession or restoration of management,