Debts Recovery Tribunals and Appellate Tribunals
JAMMU AND KASHMIR BANK LIMITED vs MODERN HOTEL PVT. LTD. on 1 July 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 31/2024
Date of Institution: 04.03.2016
Date of Decision: 01.07.2026
Jammu and Kashmir Bank Limited having branches all over India and a branch at Town Hall, Jammu.
……..Applicant
Vs.
1. Modern Hotel Pvt. Ltd. Shakuntla Cinema Complex, B.C.
Road Jammu, through its Chairman-cum-Managing Director Sh. Romesh Mahajan s/o Late Sh. Ram Chand Mahajan Gupta, r/o 72-A/D, Gandhi Nagar, Jammu.
2. Sh. Romesh Mahajan s/o Late Sh. Ram Chand Mahajan Gupta, r/o 72-A/D, Gandhi Nagar, Jammu.
3. Mrs. Renu Mahajan w/o Sh. Romesh Mahajan, r/o 72-A/D, Gandhi Nagar, Jammu.
4. Sh. Rahul Mahajan Sh. Romesh Mahajan, r/o 72-A/D, Gandhi Nagar, Jammu.
……….Defendants
Advocates
Sh. Vivek Verma, Counsel for the applicant bank.
Defendants- ex parte.
TA for the Recovery of ₹1,23,77,723.80p with interest @14% per annum with monthly rests from 04.03.2016.
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ORDER
1. On 04.03.2016, Jammu and Kashmir Bank Limited filed the suit for the recovery of ₹1,23,77,723.80p with interest against Modern Hotel Pvt. Ltd. and others (defendants) in the Court of Principal District Judge, Jammu. However, vide order dated 14.02.2023, Additional District Judge, (Commercial Court), Jammu transferred this suit to DRT-I, Chandigarh.
2. Defendant no.1 is company engaged in the business of Twin Cinema/Theater Bar and Restaurant under the name and style of Modern Hotel Pvt. Ltd. Bank’s case is that on 28.05.2011, it had granted RTL
(Rupee Term Loan) of ₹245.00 Lacs to defendant No.1 through defendant No.2 for restoration of Cinema in the name of Defendant no.1. To secure the loan, Defendant No.1 and defendant No.3 had mortgaged their properties and hypothecated assets (fully detailed in para No.4 of the application). The loan was chargeable to interest @14% per annum with monthly rests. Defendant Nos.2 to 4 stood as guarantors for the vide deed of personal guarantee dated 08.06.2011. At the time of filing of the application, a sum of ₹1,23,77,723.80p 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 were duly served. However, they did not put in appearance before the Court and vide order dated 09.07.2019, they were proceeded ex parte.
4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Vidya Sagar Gupta, Law 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 ₹245.00 Lacs and at the time of filing of the application, a sum of ₹1,23,77,723.80p was due.
6. Accordingly, the case of the bank for the recovery of ₹1,23,77,723.80p (Rupees One Crore Twenty Three Lacs Seventy Seven Thousand Seven Hundred Twenty Three and Paise Eighty Only) with interest @14% per annum with monthly rests from 04.03.2016, 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 properties and hypothecated assets fully detailed in para No.4 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 03.08.2026, 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: 01.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA