Debts Recovery Tribunals and Appellate Tribunals
JAMMU AND KASHMIR DEVELOPMENT FINANCE CORPORATION LIMITED vs NEW GASH ENTERPRISES on 12 June 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 128/2023
Date of Institution: 19.02.2022
Date of Decision: 12.06.2026
Jammu and Kashmir Development Finance Corporation Limited at Ground Floor, Jawahar Lal Nehru Udyog Bhawan, Jammu and Corporate Office at Ground Floor, Sanat Ghar, Bemina, Srinagar.
……. Applicant
Vs.
1. New Gash Enterprises Ichgam Budgam Kashmir.
2. Ghulam Hussain rather s/o Ghulam Rasool Rather, r/o Ichgam Budgam Kashmir
………. Defendants
Advocates
Sh. Abhijeet Taneja proxy counsel for Sh. Agam Bansal, Counsel for the applicant Corporation.
Ms. Riya Mailk proxy counsel for Sh. Abdul Sattar, Counsel for the Defendants.
TA for the Recovery of ₹64,32,195/- with interest @10.75% per annum with monthly rests from 19.02.2022.
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ORDER
1. On 19.02.2022, Jammu and Kashmir Development Finance Corporation Limited, filed the suit for the recovery of ₹64,32,195/- with interest against New Gash Enterprises and another (defendants) in the Civil Court Srinagar. However, vide order dated 18.01.2023, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Corporation’s case is that on 31.03.2017, it had granted Term Loan of ₹30.00 Lacs under CGTMSE Guarantee Cover to defendant No.1 through its proprietor defendant No.2 for business purpose. Defendant No.2 stood as guarantor. Again on 09.10.2018, at the request of the defendants, Corporation granted additional Term Loan of ₹20.00 Lacs to defendant No.1 through its proprietor. defendant No.2 for Business Purpose. To secure the loans, Defendant No.2 had mortgaged his land and hypothecated assets (fully detailed in para No.3 of the application). Both the loan facilities were chargeable at different rates of interest. On 30.09.2021, a sum of ₹64,32,195/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.
3. The Civil Court sent summons to the defendants by registered post, which was duly served. After transfer, Defendants summonses were sent to the defendants. On 06.03.2025, the Defendants did not put in appearance and failed to avail the opportunity of admission and denial of the documents.
4. In order to prove its case, the Corporation has placed on record the affidavit of Mr. Gowhar Arif, General Manager, along with the original loan and security documents.
5. I have perused the evidence on the record. I am of the considered view that the Corporation has proved its case that it had advanced the total loan of ₹50.00 (₹30.00 Lacs in Term Loan and ₹20.00 Lacs in Additional Term Loan) and on 30.09.2021, a sum of ₹64,32,195/- was due.
6. Accordingly, the case of the Corporation for the recovery of ₹64,32,195/- (Rupees Sixty Four Lacs Thirty Two Thousand One Hundred Ninety Five Only) with interest @10.75% per annum with monthly rests from 19.02.2022, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Corporation can recover its dues by the sale of mortgaged land and hypothecated assets fully detailed in para No.3 of the application 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 14.07.2026, who is directed to distribute the sale proceeds of the mortgaged land and hypothecated assets 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: 12.06.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA