Allowed

Indian Overseas Bank v. Ferdous Hotels Pvt. Ltd. Rep By Sri M H Ershad Ahmed And Five Others

DRT13 Jun 2025TA/937/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an interim application filed by Prudent ARC Limited to restrain respondents from alienating, transferring, or creating encumbrances on mortgaged properties cited in the petition, alleging violation of SARFAESI Act provisions while disposal of the main case is pending.

What did the court decide?

Restraining respondents 1 to 6 from developing, constructing, alienating, or creating encumbrances on schedule properties until disposal of the originating application.

Indian Overseas Bank versus Ferdous Hotels Pvt. Ltd. Rep By… — Banking and Recovery | DRT (2025)

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IA 1131/25 in TA 937/2023

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13.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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I.A. No.1131 of 2025 in T.A. No. 937 of 2023

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*Prudent ARC Limited Prudent Trsut – 64/22 Rep. by its Authorized Signatory Having office at No.611, D-Mall Plot No.A-1, Netaji Subhash Place Pitampura, New Delhi – 110 034 ….Applicant

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(Amended vide order in IA No.1348/23 dated 26.02.2024)

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-Vs-

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M/s Ferdous Hotels Pvt. Ltd. Rep. by its Joint Managing Director Sri M.H. Ershad Ahmed

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Marina Square, 5^th Floor Old No.27, New No.26 Santhome High Road Mylapore

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Chennai – 600 004

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Smt. Ferdous Begum D/o Late Sri Mohd. Haniffa Director M/s Ferdous Hotels Pvt. Ltd., M/s Ferdous Finance Pvt. Ltd. M/s Anbu Estates Pvt. Ltd. Old No.27, New No.26 Santhome High Road Mylapore

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Chennai – 600 004

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Sri. M.H. Ershad Ahmed S/o Late Sri. Mohd. Haniffa Joint Managing Director M/s Ferdous Hotels Pvt. Ltd. R-8, Marina Square 26-27, Santhome High Road Chennai – 600 004

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IA 1131/25 in TA 937/2023

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13.06.2025

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Smt. Sarbunnisa Begum W/o Late Sri. Althaf Ahmed Director, M/s Ferdous Finance Pvt. Ltd. M/s Anbu Estates Pvt. Ltd. 26-27, Santhome High Road Marina Square, 5^th Floor Chennai – 600 004

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M/s Ferdous Finance Pvt. Ltd Rep. by its Director, Smt. Sarbunnisa Begum G-5, Eldams Square Old No.167, New No.12 Eldams Road, Alwarpet Chennai – 600 018

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M/s Anbu Estates Pvt. Ltd.

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Rep. by its Director, Smt. Sarbunnisa Begum G-5, Eldams Square Old No.167, New No.12 Eldams Road, Alwarpet Chennai – 600 018 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s M.L. Ganesh

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: - ORDER ON IA NO.1131 of 2025- :

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The Original Application is filed by the Indian Overseas Bank

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(assignor) against the Defendants, seeking for recovery of money due from Defendant Nos.1 and 2 jointly and severally to pay a sum of Rs.69,20,50,877.65p (Rupees Sixty Nine Lakhs Twenty Lakhs Fifty

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Thousand Eight Hundred and Seventy Seven and Sixty Five Paise

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only) together with further interest and costs. Subsequently, the debt was assigned to M/s Prudent ARC Limited (assignee) vide Assignment Agreement dated 04.03.2022 and IA No.1348/23 for substitution was allowed vide order dated 26.02.2024.

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IA 1131/25 in TA 937/2023

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13.06.2025

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The Applicant Bank has filed the present petition i.e., I.A.No.1131/2025 with affidavit of the Senior Executive Vice President, Sh. C. Rangarajan, seeking for an order of interim injunction thereby restraining the defendants from alienating or transferring or creating any encumbrance or doing any construction on the schedule mentioned properties before discharging the loan amount and consequently direct the Sub Registrar, Mylapore, Joint – II Central Chennai not to effect any registration without the knowledge and information of the applicant bank, pending disposal of the above TA.

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It is the case of Applicant ARC that the Defendants have availed various credit facilities in the form of Term Loan-I of Rs.40 crores, Term Loan-II of Rs.5 crores, Term Loan-III of Rs.14.50 crores and Term Loan (Fresh) of Rs.35 crores for their business purpose and executed loan and security documents in favour of the applicant bank. Loan is primarily secured by hypothecation of fixed assets and movable assets of the company and collaterally secured by mortgage by deposit of title deeds of the immovable property morefully detailed in the schedule to IA.

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It is submitted by Applicant ARC that the aforesaid credit facilities are personally guaranteed on 30.01.2014 by Sri. Mohad. Haniffa (since deceased on 03.12.2017), Smt. E. Ansar Begum (since deceased on 29.04.2014), Smt. Ferdous Begum, Sri. M.H. Althaf Ahmed (since deceased on 01.08.2014), Sri. M.H. Ershad Ahmed, Ms. Sarbunissa Begum. The surviving legal heirs are already guarantors to the loan transaction.

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IA 1131/25 in TA 937/2023

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13.06.2025

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Defendants 5 and 6 which are companies have also executed Corporate Guarantees in favour of applicant bank.

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It is further submitted by applicant that due to default in operating the loan accounts, it turned into NPA on 01.05.2011. Inspite of repeated requests and demands made by the applicant bank, defendants failed to repay the loan amount. Hence the present OA is filed for recovery of sum of Rs.69,20,50,877.65p. It is submitted by applicant bank that the applicant bank had invoked the provisions of SARFAESI Act and issued Demand Notice under Section 13(2) of the Act, followed by Possession Notice dated 31.07.2017.

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It is submitted by applicant that it is reliably learnt that respondents are attempting to create an encumbrance on the secured property as evident from paper publication effected in Times of India dated 24.04.2025 informing the public about Bhoomi Pooja for starting Speciality Hospital on the schedule mentioned property. Despite knowing the fact that the said property is under mortgage, the respondents are bold enough to deal with the same and hence it is vital and necessary to restrain them from causing encumbrance or doing any sort of construction on the schedule mentioned property pending disposal of the OA to secure the ends of justice.

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Applicant bank had sent copy of IA to the defendants and filed AOS before the Registry today. Copy of IA sent to defendants 1 to 4 returned

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IA 1131/25 in TA 937/2023

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13.06.2025

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unserved with postal endorsement as ‘left without instructions’, to defendants 5 and 6 returned as ‘unclaimed, intimation served’.

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Heard the counsel for applicant bank and perused the records of produced along with the IA.

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It appears that the Applicant Bank has filed the above I.A. on the premise that defendants are attempting to create an encumbrance on the secured property as evident from paper publication effected in Times of India dated 24.04.2025 informing the public about Bhoomi Pooja for starting Speciality Hospital on the schedule mentioned property.

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It is manifest from records that summons in OA sent to defendants 1 to 6 were duly served and defendants were represented by their counsel. As per Section 19 (4A) of RDB Act, “Notwithstanding anything contained in Section 65A of the Transfer of Property Act, 1882 (4 of 1882), the defendant, on service of summons, shall not transfer by way of sale, lease or otherwise except in the ordinary course of his business any of the assets over which security interest is created and other properties and assets specified or disclosed under sub-section (3A), without the prior approval of the Tribunal”.

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The IA is filed along with copy of newspaper clipping where it is seen that the mortgage property is being developed into a Speciality Hospital where the Boomi Pooja is being conducted. It is also a matter of record that the defendants are developing the mortgaged property without the

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IA 1131/25 in TA 937/2023

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13.06.2025

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prior consent of the Applicant ARC herein, in violation of Section 19(4A). It is a matter of record that the OA was filed for recovery of sum of Rs.69,20,50,877.65p and as of 31.03.2025 the defendants owe a sum of Rs.146,30,47,438/-, which is a colossal sum of money and without repaying the loan amount, they are developing the property for a commercial purpose, which the Tribunal feels it apt to restrain them from proceeding further.

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Considering the amount of claim involved in this case and the balance of convenience, the present IA is to be allowed by keeping open the merits of the case and without prejudice to the rights of both the parties. By doing so, no prejudice, no harm and loss will be caused to the Defendants.

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As the Applicant Bank has prima facie established the essential ingredients for granting an order of injunction restraining the defendants in respect of the schedule mentioned in the schedule to the petition, this Tribunal proceeds to pass the following order:

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:ORDER:

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In the circumstances pleaded, IA No.1131 of 2025 stands allowed, restraining the defendants 1 to 6 from developing the property, constructing any building on the mortgaged property, creating any right of a third party on the property, alienating or transferring or creating any encumbrance or doing any construction on the schedule mentioned properties till disposal of the OA.

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IA 1131/25 in TA 937/2023

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13.06.2025

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The Registry is directed to communicate this Order to the Concerned Sub Registrar Office/ Village Officer for necessary action and for records. 14. IA Schedule property shall form part of this order. List the matter on 30.06.2025 for compliance by the Registry.

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Sd/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the

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13^th day of June, 2025)

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SCHEDULE OF PROPERTY

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Properties in the name of the Defendant 1

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Item No.1:

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All that piece and parcel of vacant land measuring 10 grounds and building on that bearing Old Door no.9D Present Door No.6 (in III Lane), 20, Dr. Radhakrishnan Salai, Chennai – 600004, compromised in R.S. No.1731/17, New R.S. No.1731/57 situated in Mylapore Village and Hotel Building called “Park Plaza” along with first charge on all movable assets like kitchen equipments, furnitures and fittings, Air Conditioners, TVS Elevators etc standing in the name of M/s.Ferdous Hotels Pvt. Ltd.

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Bounded on:

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North by: Above mentioned Item No.1 land owned by M/s Ferdous Finance Pvt. Ltd.

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South by: Vacant Land

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IA 1131/25 in TA 937/2023

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13.06.2025

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East by: Private Road leading to Door No.9-E & F

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West by: Compound Wall of Vepa Gopalan

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Properties in the name of Defendant 5

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Item No.1:

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All that piece and parcel of vacant land measuring 8 Grounds as per Documents (7 grounds and 947sq.ft. as per patta) and building thereon that bearing New Door No 20, Old Door No 9C, comprising in R.S.No.1731/17, C.A No 507/2005, Block No 37 situated in Mylapore Village, Dr.Radhakrishnan Salai, Chennai-4 with Hotel Building thereon called “Park Plaza” along with first charge on all movable assets like kitchen equipments, furnitures and fittings, Air Conditioners, TVS Elevators etc standing in the name of M/s.Ferdous Finance Pvt. Ltd.

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Bounded on:

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North by: Dr. Radhakrishnan Road

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South by: Below mentioned Item No.: 2-Land owned by M/s Ferdous Hotels Pvt. Ltd.

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East by: Private road leading to Door No. : 9-E & F

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West by: Compound wall of Vepa Gopalan and New Door No: 21

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Item No.2:

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All that piece and parcel of vacant land measuring 10 grounds and building on that bearing Old Door No 9D Present Door No 6 (in III Lane), 20, Dr.Radhakrishnan Salai, Chennai-600004 comprised in R.S. No. 1731/17, New R.S.No.1731/57 situated in Mylapore Village and Hotel Building called “Park plaza” along with first charge on all movable assets like kitchen equipments, furnitures and fittings, Air Conditioners, TVS Elevators etc standing in the name of M/s.Ferdous Hotels Pvt Ltd

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IA 1131/25 in TA 937/2023

13.06.2025

Bounded on:

North by: Above mentioned item No.: 1 land owned by M/s Ferdous Finance Pvt. Ltd.

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South by: Vacant Land

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East by: Private Road leading to Door No: 9-E & F

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West by: Compound Wall of Vepa Gopalan

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Properties in the name of the 7^th Defendant

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Item No.1:

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All that piece and parcel of land and building thereon i.e., 14 Shop being used as 11 units with built up area of 6495 sq.ft. in the ground floor of the building called “Eldams Square” bearing Door Nos 167/1A, 167/4, 167/5, 167/6, 167/7, 167/8, 167/12, 167/13 and 167/15 situated at Door No 167, “Eldams Square”, Eldams Road Chennai 600018 measuring 1731.178 sq.ft. of UDS out of total extent of land of 18544 sq. ft. or 7 grounds & 1744 sq. ft. with shops measuring 6495 sq. ft. comprising in Old S. No. 2048, R.S. No. 1548/1, 1548/2 and 1548/3 in Teynampet Village, Triplicane Tk standing in the name of M/s Anbu Estates Pvt. Ltd.

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And bounded on the:

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North By: Door No: 8 in Murrays Gate Road

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South By: Eldams Road

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East By: Door No: 168 in Eldams Road

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West By: Door No: 166 in Eldams Road

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Item No.2:

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All that piece and parcel of land and building being shops bearing Old Door No 167, New Door No 12, “Eldams Square, Eldams Road, Alwarpet, Chennai

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IA 1131/25 in TA 937/2023

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13.06.2025

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600018 measuring 8354 sq. ft. of USD out of total extent of land of 18544 sq. ft. in Old S. No. 2048, 3 Units R.S. No 1548/1, 1548/2 and 1548/3 in Teynampet Village, Triplicane Tk. in the name of M/s Anbu Estates (P.) Ltd.

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And bounded on the:

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North By: Door No: 8 in Murrays Gate Road

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South By: Eldams Road

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East By: Door No: 168 in Eldams Road

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West By: Door No: 166 in Eldams Road

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Indian Overseas Bank v. Ferdous Hotels Pvt. Ltd. Rep By Sri M H Ershad Ahmed And Five Others

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Ferdous Hotels Pvt. Ltd. Rep By Sri M H Ershad Ahmed And Five Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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