The Madras High Court has come to the rescue of Breeze Hotels on Poonamallee High Road in Kilpauk by reverting its case, challenging the auctioning of its immovable properties, back to the Debts Recovery Tribunal (DRT)-III, for consideration of the case, afresh.
A division bench which gave the direction while passing orders on a writ petition from the hotel, represented by its director M Rajasekar, said it was for the DRT to consider the matter afresh on merits and dispose of the same within six weeks.
In the course of its business, Exim Rajathi India Private Limited had entered into an agreement for a term loan with IndusInd Bank in T Nagar and borrowed `12.75 crore, the petitioner said. It stood as a guarantor and created equitable mortgage by deposit of title deeds of its immovable assets. However, the borrower could not repay the loan due to the sudden death of group chairman. So, the bank initiated proceedings to recover the loan amount.