Disposed

Hotel Kp Pride v. the Chikhli Urban Co-Op Bank Ltd.

DRT17 Dec 2022SA/436/2022

Case brief

AI extract

What is this about?

The Tribunal approved a repayment scheme for Hotel KP Pride before possession and 1.5 crores by Dec 2022, asked the bank to waive penal interest during COVID, stayed securitisation actions pending compliance.

What did the court decide?

Paid INR 10 Lakhs before possession and INR 15 Lakhs by 31st Dec 2022; remaining 50% overdue by 30th Mar 2023; bank to waive penal interest for COVID period.

Hotel Kp Pride versus the Chikhli Urban Co-Op Bank Ltd. — Banking and Recovery | DRT (2022)

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD (BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD) ORDER SHEET

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17 Sr	.12.20 . No.21	22 SA No.436/2022
Classifi cation	No. of Exh.
		SECURITISATION APPLICATION No.436/2022 Hotel KP Pride ..Applicant Versus The Chikhli Urban Co-op. Bank Ltd. ..Respondent Mr. P.S. Gaikwad – Advocate for the applicant. Mr. K.J. Suryawanshi - Advocate for the respondent-bank. The matter is taken through VC. 1. In this matter a proposition was given yesterday that the overdue amount of Rs.1,70,000/- (Rupees One Lac Seventy Thousand only) should be deposited latest by 30^thJune, 2023 and minimum 50% should be deposited before 30^th March, 2023. 2. The counsel for the respondent-bank submits that the applicant must clear the overdue amount by 30^thMarch, 2023 and thereafter they can pay two installments each to clear the entire overdues by 30^thJune, 2023. 3. The Tribunal feels that since after Covid the hotel industry is picking up slowly but steadily and if the hotel runs there are very fair chances of bank getting their entire dues cleared. 4. The counsel for the bank is ready on instructions to get the

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[SBJ]

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(SA No.436/2022) Page 1 of 3

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD (BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD) ORDER SHEET

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account regularised but as stated above only.

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In these circumstances it is ordered as under let the applicant pay Rs.10,00,000/- (Rupees Ten Lacs only) before the possession and another Rs.15,00,000/- (Rupees Fifteen Lacs only) on or before 31^st December, 2022. The request of the bank that they should pay every month is also accepted. The applicant shall pay some amount of the receipts in the hotel business every month which should not be less than 10% of the gross sale. By 30^th March, 2023 they shall pay the 50% of the overdue amount of Rs.1.70 crores including the amount paid as above and balance shall be paid by 30^th June, 2023. Thereafter they shall be paying two installments every month so that by December-2023 the entire overdues including the present installments from January to June -2023 also cleared.

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The request is being made by the applicant that due to Covid they suffered and the respondent-bank shall waive penal interest and grant some concession in the interest.

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Looking into the Pendamic situation let the respondentbank consider their request and at least waive the penal interest and calculating interest on simple basis for COVID period however this has been left to the complete discretion of the respondent-bank.

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In these circumstances in case of any default the respondent-bank can move the appropriate application for taking action against the applicants.

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[SBJ]

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(SA No.436/2022) Page 2 of 3

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD

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(BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD)

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ORDER SHEET

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9. With the above directions, the Securitisation Application shall be disposed off.
10. In view of the above, I pass the following order through hybrid hearing:
ORDER
A. The Securitisation Application No.436/2022 stands disposed off however if the applicants failed to comply any of the conditions as stated above, the respondent- bank will be at liberty after intimating this Tribunal by way of Miscellaneous Application to move under securitisation. B. All the actions of Bank under securitisation shall remain stayed and the respondent-bank will be at liberty to revive them only if the above conditions are not complied with by moving MA. C. Accordingly, all the pending Interlocutory Applications stand disposed off.
D. File be consigned to the record room. (Vimal Gupta) Presiding Officer Debts Recovery Tribunal, Aurangabad

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[SBJ]

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(SA No.436/2022) Page 3 of 3

Hotel Kp Pride v. the Chikhli Urban Co-Op Bank Ltd.

Case brief

What is this about?

What did the court decide?

Hotel Kp Pride v. the Chikhli Urban Co-Op Bank Ltd.

Case brief

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What did the court decide?

What the court decided

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