Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

Rohan Traders filed a section 17 application on 1 June. The DRT could not dispose of it in 60 days and extended the time, recording reasons in writing. By 1 October the matter was still pending. What may a party to the application do?

Since four months have passed without disposal, a party may apply to the Appellate Tribunal under section 17(6) for a direction to the DRT to dispose of the pending application expeditiously. The Act does not provide for deemed allowance of the application.

  1. AMake an application to the Appellate Tribunal for directing the DRT to dispose of the application expeditiouslyCorrect
  2. BTreat the application as deemed allowed in its favour
  3. CWithdraw the application and file a fresh one before the same DRT with a new four-month period
  4. DApproach the civil court to decide the matter

Explanation

Under section 17(5), disposal is expected within sixty days, extendable for recorded reasons, but total pendency cannot exceed four months. Under section 17(6), if not disposed of within four months, any party may apply to the Appellate Tribunal for a direction for expeditious disposal. The Act does not provide for deemed allowance.

Did you get it right without looking?

One question tells you little. A timed set on Debt Recovery and Securitization shows your real accuracy, how long you take and where you lose marks.

Practise Debt Recovery and SecuritizationFree diagnostic mock

More Debt Recovery and Securitization questions