The Counsel for the Applicant submitted that the Applicant has been running a hotel business under the name and style of M/s. The Thangam Grand, which is a Private Limited Company and Applicant is the Managing Director of the said Company. R. Ramkumar and R. Ramesh are the other Directors of the said company. In order to improve the business, on behalf of M/s. The Thangam Grand, Applicant availed several credit facilities from the Defendant Bank, i.e. 1. SME Term Loan for a sum of Rs. 7.00 Crore on 14.06.2013, 2. SME Term Loan for a sum of Rs. 2,38,00,000/- on 30.05.2015 & 3. Secured Over Draft of Rs. 78,00,000/- on 30.10.2018, Total sum of Rs. 10,16,00,000/-. The Item Nos. 1 and 2 of the properties described in the description of properties belong to M/s. Pandyan Automobiles Pvt. Ltd., and item no. 3 of the properties described in the description of properties belongs to Applicant and other Directors. The Applicant and other Directors agreed to stand as Guarantors for the credit facilities to be sanctioned to M/s. The Thangam Grand. The Applicant was paying the Principal and interest very promptly and regularly and so far he paid a sum of Rs. 15,50,00,000/-. The Applicant has been facing cash crunch in the business and suffered financial loss. Thereafter, due to COVID-19, Pandemic situation followed by omicron entire business was stalled and the situation is not yet regularized as before Covid-19. Hence, Applicant incurred heavy loss in the business and could not repay the loan amount. The RBI and Central Government of India have repeatedly announced to give Covid-19 loan. That was not given to the Applicant by the Defendant for the reasons best known to them. If Covid-19 loan is given, Applicant's loan account will not be slipped into NPA at all.
