Allowed

Indian Bank v. Epicure Hospitality LLP

DRT8 Apr 2024OA/20/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Indian Bank against a partnership firm and its guarantors to recover dues classified as NPA. The bank sought specific amounts with interest following the issuance of a Section 13(2) notice for failure to pay the loan.

What did the court decide?

Direct response to the applicants to pay Rs. 2,95,41,961.15 within 60 days with interest; direction for recovery from sale of assets and issuance of Recovery Certificate.

Indian Bank versus Epicure Hospitality LLP — Banking and Recovery | DRT (2024)

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OA 20 of 2023

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Registered on : 16.01.2023 Decided on : 08.04.2024

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IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI ORIGINAL APPLICATION NO. 20 of 2023

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INDIAN BANK A Banking Company established under the relevant provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act, V, 1970) and having its Head Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai- 600 014 and having its Zonal Office at 18^th Floor, Maker Tower F, Cuffe Parade, Mumbai- 400 005 and one of its Stressed Assets Management Vertical Branch Office situated 73, Mittal Chamber, Opp. Inox Theatre, Nariman Point, Mumbai400 021 and amongst one of its Prabhadevi Branch Office situated at Ground Floor, Aman Chambers, Near Gammon House, Veer Savarkar Marg, Prabhadevi, Mumbai- 400 025 (Maharashtra), through its Branch Manager, Mr. Sujay G. for and on behalf of the Applicant.

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…. APPLICANT

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VERSUS

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M/S. EPICURE HOSPITALITY LLP Partnership Firm having its registered office address situated at Flat No. 304, EMP- 49, Evershine Halley Tower, Evershine Paradise Millenium Paradise, Phase V, Near Thakur Cinema, Thakur Village, Kandivali (East), Mumbai- 400 101.

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And

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At Restaurant No. 5, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

OA 20 of 2023

And

At Restaurant No. 114, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

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And

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At Flat No. 4004, 40^th Floor, ‘C’ Wing, D. B. Woods, Village – Dindoshi, Gokuldham, Goregaon (East), Mumbai400 063.

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And

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At 8/17, Nehru Nagar, Shrinivaspuri S.O. South Delhi, Delhi-110 065, through its partners or any authorised person.

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MRS. PUNEET PRITPAL SINGH ALAG Partner, M/s. Epicure Hospitality LLP, Indian Inhabitant, having her address situated at Flat No. 304, EMP49, Evershine Halley Tower, Evershine Paradise Millenium Paradise, Phase V, Near Thakur Cinema, Thakur Village, Kandivali (East), Mumbai- 400 101. And

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At Restaurant No. 5, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

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And

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At Restaurant No. 114, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

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And

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At 8/17, Nehru Nagar, Shrinivaspuri S.O. South Delhi, Delhi-110 065

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MR. BHAIRAV THAKOR PANCHAL Partner, M/s. Epicure Hospitality LLP, Indian Inhabitant, having her address situated at Flat No. 304, EMP- 49, Evershine Halley Tower,

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OA 20 of 2023

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Evershine Paradise Millenium Paradise, Phase V, Near Thakur Cinema, Thakur Village, Kandivali (East), Mumbai- 400 101.

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And

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At Restaurant No. 5, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

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And

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At Restaurant No. 114, 1^st Inspire BKC, ‘G’ Block, BKC Main Road, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051.

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And

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At Flat No. 4004, 40^th Floor, ‘C’ Wing, D. B. Woods, Village – Dindoshi, Gokuldham, Goregaon (East), Mumbai400 063.

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MR. BHUPENDER SINGH Indian Inhabitant, having his address situated at Flat No. 4004, 40^th Floor, ‘C’ Wing, D. B. Woods, Village – Dindoshi, Gokuldham, Goregaon (East), Mumbai400 063. And At 8/17, Nehru Nagar, Shrinivaspuri S.O. South Delhi, Delhi-110 065 … DEFENDANT

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_____________________________________________ Counsel for the Applicant : Adv. R. J. Singh Counsel for the Defendants : Ex-parte

OA 20 of 2023

J U D G M E N T

The Original Application has been filed by the Applicant against the Defendants for recovery of following amounts:

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i. Rs. 2,40,81,992.25 (Rupees Two Crore Forty Lakh Eighty One Thousand Nine Hundred Ninety Two and Pasie Twenty Five Only) from Defendant No.1 to 4 with future interest at the rate of 11.10 % p.a. with monthly rests and 2 % penal interest from 03.10.2022 till the payment of the entire amount.

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ii. Rs. 54,59,968.90 (Rupees Fifty Four Lakh Fifty Nine Thousand Nine Hundred Sixty Eight and Paise Ninety) from Defendant No.1 to 3 with future interest at the rate 8.90 % with monthly rests and 2 % penal interest from 03.10.2022 till the payment of the entire amount.

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Aggregating to sum of Rs. 2,95,41,961.15 (Rupees Two

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Crore Ninety Five Lakh Forty One Thousand Nine Hundred Sixty One and Paise Fifteen Only) with interest as mentioned above.

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Facts as succinctly set out in the present OA are that the Defendant No.1 is a partnership firm and who is borrower. Defendant No.2 & 3 are the partners of Defendant No.1, and are also guarantors who has given personal guarantee for repayment. Defendant No.4 is guarantors, who had given personal guarantee for repayment of the loan advanced by the Applicant.

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It is stated that Defendant No.1 submitted loan application through its partners for sanction of Working Capital Credit Facility/ Term

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OA 20 of 2023

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Loan of Rs. 1,70,00,000/- and Cash Credit Facility of Rs. 25 Lakh. Pursuant to the said request, Applicant vide sanction letter dated 24.10.2019 sanctioned Working Capital/ Term Loan of Rs. 1,70,00,000/- and Cash Credit Facility of Rs. 25 Lakh against hypothecation of entire stock, goods, book, debts, plant, machineries, receivables, etc. to Defendant No.1. The said loan was to be repaid in 60 monthly installment, the first installment was commencing from April 2020 and Open Cash Credit amount of Rs. 25 Lakh.

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In consideration of sanction of the working capital/ term loan and cash credit facility, Defendant No.1 executed following loaning and security documents on 25.10.2019:

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i. Partnership Letter

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ii. Joint and Several Demand Promissory Note

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iii. Term Loan Agreement

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iv. Disposal of Proceeds Letter

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v. Agreement of hypothecation of movable

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vi. Letter of Pegging

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vii. Declaration by the Defendant No. 1

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viii. Letter of authority from the Defendant No. 1

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It is further stated that Defendant did not availed open cash credit facility. In pursuance of the aforesaid sanction of the Term Loan of Rs. 1,70,00,000/-, to Defendant No. 1 and to secure the repayment thereof, the Defendant No. 2 to 4, have individually, executed personal guarantee in favour of the Applicant.

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It is also stated that Defendant No. 1 made request through its partners to Prabhadevi, for restructuring the aforesaid Term Loan of Rs. 1,70,00,000/- with present outstanding amount of Rs. 195,27,000/-. The Applicant considered the aforesaid request and Applicant vide sanction letter dated 12.02.2021 restructured the

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OA 20 of 2023

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aforesaid Term Loan facility with outstanding amount of Rs. 1,95,27,000/-. The said loan was to be repaid in 136 equal monthly installments within moratorium period of 12 months, the first installment to commence from February 2022.

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It is further stated that on or about 27.10.2021, the Defendant No.1 submitted loan application through its partners to Prabhadevi, Mumbai branch of the Applicant for sanction of GECL Term Loan of Rs. 51 Lakh for its Hospitality Business under Covid 19 Scheme. The Applicant considered the request and vide sanction letter dated 17.11.2021 sanctioned Guarantee Emergency Credit Line (GECL) – Term Loan of Rs. 51 Lakh against hypothecation of entire stock, goods, book, debts, plant, machineries, receivables, etc. to the Defendant No. 1. The said amount was repayable by the Defendant No. 1 to the Applicant in 36 equal monthly installment of Rs. 1,58,642/-, with interest, cost, charges, etc. fully repaid, the interest to be served as and debited within moratorium period of 24 months, the first installment to commence from November 2023.

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In consideration of sanction of the aforesaid GECL Term Loan of Rs. 51 Lakh against hypothecation of entire stock, goods, book, debts, plant, machineries, receivables, etc. to the Defendant No. 1, the Defendant No. 1 executed following loaning and security documents on 17.11.2021:

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i. Partnership Letter

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ii. Joint and Several Demand Promissory Note

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iii. Term Loan Agreement

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iv. Agreement of Hypothecation of movable

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OA 20 of 2023

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v. Letter from the Defendant No. 1 for discloser of information

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It is further stated that Defendant No. 1. had, interalia, also hypothecated all stocks, goods, book, debts, receivables present and future belonging to the said company/ firm/ its by creating first charge over the said stocks and goods, book, debts, receivables for securing the said credit facility from time to time. Defendant No. 2 to 4 had also guaranteed the repayment of all the outstandings due to the Applicant.

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However, after availing aforesaid facilities, Defendant No. 1 made part payment of the said facilities, but they failed and neglected to regularize its loan accounts. The Defendants further admitted their liability by executing acknowledgement of debts dated 20.03.2021 & 17.11.2021, respectively. Further, Defendant No. 1 failed and neglected to comply the terms and conditions for availing the aforesaid facilities, thus the accounts of Defendant No. 1 was classified as NPA on 01.05.2022. Thereafter, the Applicant issued demand notice dated 18.05.2022 under section 13 (2) of the SARFAESI Act, 2002, and called upon the Defendants to repay the outstanding dues, but they failed to do so. Hence, the present OA has been filed.

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Notices were issued to the Defendants. Despite service, none appeared on behalf of the Defendant No. 1 to 4 nor any WS has been filed, thus, they were proceeded ex-parte vide even date order.

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The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed through Manager, Kumar Gaurav.

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OA 20 of 2023

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I have heard the Ld. Counsel for the Applicant Bank and perused the record.

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The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant Bank is based on documents and the witness has duly proved all these documents as against the defendant. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt against Defendant No. 1 to 4.

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It is clarified that in the present OA the Applicant is claiming recovery from the Defendant No.4 of Rs.2,40,81.992.25 therefore, the liability of the Defendant No.4 is limited to the extent of Rs. 2,40,81,992.25 with further interest as claimed in the OA.

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In the light of above discussions, the Original Application filed by the Applicant Bank deserves to be allowed against the Defendant No.1 to 4.

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O R D E R

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(i) I allow the present O.A. and direct the Defendant No. 1 to 4 to pay to the Applicant, within a period of 60 days, a sum of following amount:

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a. Rs. 2,40,81,992.25 (Rupees Two Crore Forty Lakh Eighty One Thousand Nine Hundred Ninety Two and Pasie Twenty Five Only) by Defendant No.1 to 4 with future interest at the rate of 11.10 % p.a. with monthly rests and 2 % penal interest from 03.10.2022 till the payment of the entire amount.

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OA 20 of 2023

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b. Rs. 54,59,968.90 (Rupees Fifty Four Lakh Fifty Nine Thousand Nine Hundred Sixty Eight and Paise Ninety) by Defendant No.1 to 3 with future interest at the rate 8.90 % with monthly rests and 2 % penal interest from 03.10.2022 till the payment of the entire amount. Aggregating to sum of Rs. 2,95,41,961.15 (Rupees Two

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Crore Ninety Five Lakh Forty One Thousand Nine Hundred Sixty One and Paise Fifteen Only) with interest as mentioned above.

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(ii) Failing which the aforesaid amount shall be recovered from the sale of the hypothecated goods and assets; personal moveable and immoveable assets of the Defendants.

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(iii) Defendants are hereby directed not to deal with their properties till further direction of Ld. Recovery Officer.

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(iv) Defendants shall also pay the cost and expenses of the OA.

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(v) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal.

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Copy of this order be sent to the parties as per rules.

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File be consigned to record.

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Place: Mumbai. (Dr. Rekha G. Dhakar) Date : 08.04.2024 Presiding Officer, DRT-1, Mumbai.

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Tjs/-

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Indian Bank v. Epicure Hospitality LLP

Case brief

What is this about?

What did the court decide?

Indian Bank v. Epicure Hospitality LLP

Case brief

What is this about?

What did the court decide?

What the court decided

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