Debts Recovery Tribunals and Appellate Tribunals
JAMMU AND KASHMIR BANK LIMITED vs M/S S K CARPETS on 15 June 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 118/2023
Date of Institution: 13.08.2021
Date of Decision: 15.06.2026
Jammu and Kashmir Bank Limited B/U Nowhatta, Srinagar.
……...Applicant
Vs.
1. M/s S K Carpets through its proprietor Shokat Ahmed Hakak s/o Ghulam Mohammad Hakak, r/o Mir Mohalla, Nowhatta, Srinagar, Kashmir.
2. Showkat Ahmed Hakak s/o Ghulam Mohd Hakak, r/o Mir Mohalla, Nowhatta, Srinagar, Kashmir.
3. Mohammad Lateef Kulla s/o Late Abdul Gani Kulla, r/o Jabgaripora, Nowhatta, Srinagar.
4. Nisar Ahmad Kula s/o Habibulla Kulla, r/o Jabgaripora, Nowhatta, Srinagar.
5. Ghulam Mohd Hakak s/o Mohd Umar Hakak, r/o Mir Mohalla, Malaratta, Srinagar since deceased through his legal; heirs:-
a. Ms. Fatima wife of Late Shri Ghulam Mohammad Hakak, Resident of Mir Mohalla Nowhatta, Srinagar., Jammu and Kashmir. (Wife)
b. Shri Showkat Ahmad Hakak son of Late Shri Ghulam Mohammad Hakak, Resident of Mir Mohalla Nowhatta, Srinagar, Jammu and Kashmir. (Son)
c. Shri Javid Ahmad Hakak son of Late Shri Ghulam Mohammad Hakak, Resident of Mir Mohalla Nowhatta, Srinagar, Jammu and Kashmir. (Son)
d. Ms. Masarat daughter of Late Shri Ghulam Mohammad Hakak, Resident of Mir Mohalla Nowhatta, Srinagar, Jammu and Kashmir. (Daughter)
6. Hilal Ahmad Sheikh s/o Ghulam Nabi Sheikh, r/o Navind Doori, Nowshera, Srinagar.
7. Manzoor Ahmad Malik s/o Ghulam Hussain Malik, r/o Androoni, Kathi Darwaza, Srinagar.
………. Defendants
Advocates
Ms. Sonal Chabbra proxy counsel for Sh. Vivek Verma, Counsel for the applicant bank.
Defendants-ex parte vide order dated 10.12.2025.
TA for the Recovery of ₹33,28,928.48p with interest from 13.08.2021.
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ORDER
1. On 13.08.2021, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹33,28,928.48p with interest against M/s S K Carpets and others (defendants) in the Court of Principal District Judge, Srinagar. However, vide order dated 21.02.2023, 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 01.06.2001, it had granted a loan of ₹1.50Lacs to defendant No.1 through its proprietor defendant No.2 in the form of C.C Limit for business purpose. The limit was enhanced from time to time and lastly on 20.04.2010. On 20.04.2010, Bank enhanced the existing limit from ₹6.00Lacs to ₹14.00Lacs. Defendant Nos.3 and 4 stood as guarantors for the enhanced limit of ₹14.00Lacs. To secure the loan, Defendant no.5 mortgaged his property (fully detailed in para no.15 of the plaint). 2A. On 28.11.2013, bank granted a Sarul/Saholit Finance of ₹4.00Lacs to Defendant no.1 for personal use. Defendant no. 6 and 7 stood as the guarantors. The loans were chargeable to different rates of interest. On 31.03.2021, total sum of ₹33,28,928.48p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.
3. Defendant no. 1 to 4 and 6 and 7 filed a joint written statement before the Civil Court wherein they have alleged that the bank has concealed material and relevant facts; the suit has been filed against a dead person; the suit has been and presented by a person who had no legal authority; no liability is incurred on behalf of the answering defendants on the basis of documents averred in the plaint; the answering defendants denied the execution of D.P. Note dated 23.06.2016; the signatures of the Defendants were obtained on blank papers the bank has obtained burglary insurance cover from Bajaj Alliance General Insurance Company; the statement of accounts is not genuine. 3A. After the transfer of the suit, summonses were sent to the Defendants. However, they did not put in appearance and were proceeded ex parte on 10.12.2025.
4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Javed Shera, Authorized Officer, 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 total of ₹18.00Lacs and on 31.03.2021, a sum of ₹33,28,928.48p was due.
6. Accordingly, the case of the bank for the recovery of ₹33,28,928.48p (Rupees Thirty Three Lacs Twenty Eight Thousand Nine Hundred Twenty Eight and Paise Forty Eight Only) i.e. ₹28,13,808.48p in the C.C Limit with interest @10.95% per annum with monthly rests and ₹5,15,120/- in the Consumption Loan Account with interest @16.25% with monthly rests from 13.08.2021, till the date of payment is hereby allowed with costs. The liability of defendant nos. 1 to 5 would be joint and several for the amount due in the C.C. Limit and the liability of Defendant nos. 1, 2, 6 and 7 would be joint and several for the amount due in the Consumption Loan. The liability of the legal heirs of Defendant no.5 would be limited to the extent of property inherited by them from Ghulam Mohd. Hakak. Bank can recover its dues by the sale of mortgaged property fully detailed in para No.15 of the application as well as from the personal movable and immovable property(ies) of the defendant nos. 1 to 4, 6 and 7.
7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on 17.07.2026, who is directed to distribute the sale proceeds of the mortgage 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: 15.06.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA