Debts Tribunal Queers Azhars Pitch

Former Indian cricket captain Mohammed Azharuddins increasingly reckless batting has already become a cause of concern for his numerous fans. But the elegant stroke-makers flawed judgement appears to extend to business as well, with a venture backed by him having shut down without repaying a loan extended by Canara Bank.

Azharuddin, or Azhar, as he is fondly known, is on a sticky wicket as the bank has taken him and his family members to court in order to recover the loan amount. The Debts Recovery Tribunal has also queered his pitch by serving him an ex-parte direction for not appearing at its hearings.

 

The venture in question is a restaurant, which is rather appropriately named Impulse. The restaurant was set up by Razack Hotels in the leased premises of the Karnataka State Handicrafts Development Corp Ltd on the citys upmarket M G Road.

Canara Bank had provided a loan of Rs 7 lakh to the joint Razack Hotels chairmen and managing directors, Moha-mmed Ateequr Rehman and Syed Rafiuddin Ahmed, on August 31, 1989, to set up the restaurant.

The loan was granted after respondents Azharuddin, his ex-wife Naureen Azharuddin, Syed Rafiuddin Ahmed and three others gave a personal guarantee to the bank. The restaurant was inaugurated amidst much hype and hoopla by ace all-rounder Kapil Dev, and appeared set for a long and profitable innings. However, it quickly became apparent that Azhar had chased a wrong un as the restaurant closed down shortly thereafter.

According to Canara Bank, the loan was to be returned in 54 monthly instalments of Rs 13,000 per month. However, the borrowers became ``very irregular in their payment and committed acts of enormous financial indiscipline and allowed large amounts to be in arrears.

In 1992, the bank filed a civil suit, seeking a sum of Rs 10.59 lakh, including legal fees of about Rs 1.05 lakh and interest accrued from the date of the suit, to be compounded quarterly at 23.25 per cent. The loan amount is estimated to have escalated to over Rs 40 lakh by now.

In the meantime, the case was shifted to the Debts Recovery Tribunal, where it is still in its early stages. Summons have just been dispatched to the concerned parties.

KSHDC sources claimed they had leased their premises for a five year period in 1988 to Mohammed Ateequr Rehman and others to start a restaurant. The lease, which was extended, will expire after a year-and-a-half. ``We have nothing to do with the court case. Canara Bank has named us as a respondent just as a formality. We hear the owners of the restaurant ran into trouble and have been trying to restart the restaurant, said the sources.

Azhar could not be contacted as he is currently engaged in doing battle with the Caribbean quicks. But it appears likely that his decision to back the restaurant is one Impulse that he heartily regrets.