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IN THE HIGH COURT OF JUDICATUREAT MADRAS
Mr.K.R.SHRIRAM, CJ, Mr.Justice MOHAMMED SHAFFIQ, J
Lotus Hospital and Research Centre Ltd., Rep. By its Managing Director, Dr. E.K. Sagadhevan – Appellant
Versus
Housing and Urban Development Corporation Ltd., Through its Authorised Signatory and Joint General Manager (Law), R. Murugesan – Respondent
ORDER :
(Mohammed Shaffiq, J.)
The present writ petition is filed challenging the impugned order in R.A.No.102 of 2019 dated 19.12.2019 of the Debt Recovery Appellate Tribunal (DRAT), on the premise that it suffers from manifest arbitrariness inasmuch as it affirms the action of the 1st respondent financial institution in resiling/reneging its offer/promise.
2. The 1st petitioner proposed to establish an Hospital at Erode with a view to provide better medical care in Rural area. The project cost was estimated at Rs. 20 Crores. The first respondent came forward to fund the petitioner hospital under the “Rural Infrastructure Development Scheme” envisaged by the first respondent. In terms of the said Scheme the 1st respondent was to fund projects including hospitals for development of rural infrastructure, with a condition that the project/establishment would provide for certain concessions, one of them being that such hospital would provide 20% of the beds free of cost to rural public. The first respondent granted a loan of Rs.827.95 lakhs for construction of 100 bedded multi- speciality hospital at Kasipalayam, Erode. The petitioner executed necessary documents including mortgage deed
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