Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs M/S J.K. GOLD JEWELLARY on 18 April 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 226 of 2023
Date of Institution: 23.03.2016
Date of Decision: 18.04.2026
Canara Bank having a branch at Budshah Chowk, Srinagar, Kashmir.
……..Applicant
Vs.
1. M/s J.K. Gold Jewellary, Alamdar Colony, Kanipora, Nowgam, Srinagar thogyh its proprietor Khaleel Ahmad Mughal.
2. Khaleel Ahmad Mughal s/o Mohd. Shafi Mughal r/o Gambeer Mohalla, Rajouri, jammu.
At Present: Alamdar Colony, Kanipora Nowgam, Srinagar.
……….Defendants
Advocates
Sh. Aseem Kataria, Counsel for the applicant bank.
None for defendants.
TA for the Recovery of ₹86,39,969.65p with interest @13.15% per annum with monthly rests from 23.03.2016.
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ORDER
1. On 23.03.2016, Canara Bank, filed the suit for the recovery of ₹86,39,969.65p with interest against M/s J.K. Gold Jewellary (defendants) in the Civil Court Srinagar. However, vide order dated 02.11.2022, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Bank’s case is that on 28.06.2013, it had granted a loan of ₹40.00Lacs to the defendants in the form of C.C Limit for business purpose. The limit was enhanced and renewed from time to time and lastly on 01.09.2014, from ₹40.00Lacs to ₹58.00Lacs. on 22.11.2014, the C.C. Limit was restructured into a Working Capital Term Loan for an amount of ₹58,50,600/-. On 22.11.2014, the bank also granted a loan of
₹25.00Lacs in the form of C.C. Limit to the defendants for business purpose. To secure the loan, Defendant no.2 had mortgaged his land (fully detailed in para No.5 of the plaint). The loans were chargeable to interest @13.15% per annum with monthly rests. On 15.03.2016, a sum of ₹86,39,969.65p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.
3. The Civil Court sent summonses to the defendants which were duly served. After receiving the file by transfer from Jammu, this Tribunal sent summonses to the defendants by registered post, dasti and paper publication which were duly served. However, defendants did not put in appearance and vide order dated 17.12.2025, they were proceeded ex parte.
4. In order to prove its case, the Bank has placed on record the affidavit of Md. Shahab Akhtar, Branch Manager, along with the loan and security documents.
5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced loan under different schemes and on 15.03.2016, a sum of ₹86,39,969.65p was due.
6. Accordingly, the case of the bank for the recovery of ₹86,39,969.65p (Rupees Eighty Six Lacs Thirty Nine Thousand Nine Hundred and Sixty Nine and Sixty Five Paise Only) with interest @13.15% per annum with monthly rests from 23.03.2016, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.5 of the plaint as well as from the personal movable and immovable property(ies) of the defendants.
7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on 21.05.2026, who is directed to distribute the sale proceeds of the mortgage land as per the provisions of Section 19(20-AB) of the Act.
10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.
Pronounced in the open court.
(A S Narang) Dated: 18.04.2026 Presiding Officer DRT-1, Chandigarh