Debts Recovery Tribunals and Appellate Tribunals
PUNJAB NATIONAL BANK vs M/S G.M SHAH on 8 June 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 282/2023
Date of Institution: 16.11.2019
Date of Decision: 08.06.2026
Punjab National Bank having its branches all over India and a branch at Unit Jahangir Chowk, Srinagar, Jammu and Kashmir.
……..Applicant
Vs.
1. M/S G.M Shah Prop: Ghulam Muhammad Shah Gonchoo PC
Depot Qamarwari, Srinagar, Jammu and Kashmir.
2. Ghulam Muhammad Shah Gonchoo S/o Late Haji Abdul Rehman Shah Gonchoo Ro PC Depot, Qamarwari, Srinagar, Jammu and Kashmir.
3. Shafi-ur-Rehman Shah Gonchoo S/o Late Haji Abdul Rehman Shah Gonchoo Ro Shah Avenue H.No. 111 Near T.K College Laweypora, Srinagar, Jammu and Kashmir.
4. Manzoor Ahmed Shah Gonchoo S/o Late Haji Abdul Rehman Shah Gonchoo, Ro H.No. 35 Charm Wood Colony, Wanabal, Rawalpora Srinagar, Jammu and Kashmir.
5. Mst Khataja Begum W/o Late Haji Abdul Rehman Shah Gonchoo, Ro H.No. 35 Charm Wood Colony, Wanabal, Rawalpora Srinagar, Jammu and Kashmir.
6. Halima Bano W/o Late Haji Abdul Rehman Shah Gonchoo, R/o H.No. 35 Charm Wood Colony, Wanabal, Rawalpora Srinagar, Jammu and Kashmir.
7. Akhtara Bano W/o Mushtag Sumji RV/o Padshahinagh Behind Wanposh Hotel, Srinagar, Jammu and Kashmir.
……….Defendants
Advocates
Mr. Gulshan Mehta proxy counsel for Sh. Ankit Kaushal, Counsel for the applicant bank.
Mr. Kaveesh proxy counsel for Ms. Shivani Saini, Counsel for the Defendants.
None for other Defendants
TA for the Recovery of ₹1,30,76,769.43p with interest @14% per annum with monthly rests from 16.11.2019.
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ORDER
1. On 16.11.2019, Punjab National Bank, filed the suit for the recovery of ₹1,30,76,769.43p with interest against M/S G.M Shah and others (defendants) in the Court of Principal District Judge, Srinagar. However, vide order dated 27.02.2023, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Defendant no.1 and its proprietor Defendant no.2 approached the bank in the year 2007. Later, in the year 2014 they approached the bank for the enhancement from ₹40.00Lacs to ₹80.00Lacs. Bank’s case is that on 18.11.2014, it had granted a loan of ₹80.00 Lacs to defendant No.1 through its proprietor defendant No.2 in the form of C.C Limit for business purpose. To secure the loan, Defendant Nos.2 to 7 had mortgaged their property (fully detailed in para No.7 of the application). Defendant nos. 3 to 7 stood as the guarantors. The loan was chargeable to interest @14% per annum with monthly rests. At the filing of the application, a sum of ₹1,30,76,769.43p 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 by registered post, which was duly served. After transfer, summonses were sent to the defendants which were duly served. Vide order dated 04.03.2025, despite granted sufficient time to defendant Nos.1 and 2 to file Written Statement but they failed to file Written Statement within the stipulated period of 30 days. Accordingly, the right of the defendants to file Written Statement was closed. On 13.11.2025, the defendants were summoned for the purpose of Admission and Denial however, they did not put in appearance and failed to avail the opportunity of Admission and Denial.
4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Ishfaq Ahmad, Senior 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 Bank has proved its case that it had advanced the loan of ₹80.00 Lacs and at the filing of the application, a sum of ₹1,30,76,769.43p was due.
6. Accordingly, the case of the bank for the recovery of ₹1,30,76,769.43p (Rupees One Crore Thirty Lacs Seventy Six Thousand Seven Hundred Sixty Nine and Paise Forty Three Only) with interest @14% per annum with monthly rests from 16.11.2019, 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 property fully detailed in para No.7 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 10.07.2026, who is directed to distribute the sale proceeds of the mortgaged property 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: 08.06.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA