JAMMU AND KASHMIR BANK LIMITED vs M/S DIFFERENT LAMBERT LANE on 8 July 2026

ORDER

1. On 04.07.2016, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹20,42,410.06p with interest against M/s Different Lambert Lane and others (defendants) in the Court of Principal District Judge, Srinagar. However, vide order dated 22.02.2023, Additional District Judge, (Bank Cases), Srinagar, transferred this suit to DRT-I, Chandigarh.

2. Defendant no.1 is the proprietorship firm of Defendant no.2 and engaged in the business of Readymade Garments. Bank’s case is that on

27.01.2000, it had granted a loan of ₹2.00 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 no.1 had hypothecated assets (fully detailed in para No.5 of the application). Defendant nos.3 and 4 stood as guarantors for the C.C. Limit. 2A. Again on 06.06.2003, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹2.00 Lacs to ₹4.00 Lacs. To secure the loan, Defendant no.1 hypothecated assets (fully detailed in para No.8 of the application). Defendant Nos.3 and 4 stood as guarantors for the enhanced C.C. Limit. 2B. Again on 10.09.2005, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹4.00Lacs to ₹7.00Lacs. To secure the loan, Defendant no.1 had hypothecated assets (fully detailed in para No.11 of the application). Defendant nos.3 and 4 stood as guarantors for the enhanced C.C. Limit. 2C. Again on 12.06.2006, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹7.00 Lacs to ₹10.00 Lacs. To secure the loan, Defendant no.1 had hypothecated assets (fully detailed in para No.14 of the application). Defendant nos.3, 4 and Khurshid Ahmad stood as guarantors for the enhanced C.C. Limit. 2D. Again on 05.09.2007, at the request of the defendants, bank enhanced the existing limit from ₹10.00 Lacs to ₹16.00 Lacs. To secure the loan, Defendant no.1 had hypothecated assets (fully detailed in para No.17 of the application). Defendant nos. 3 to 5 stood as guarantors for the C.C. Limit. The loan was chargeable to interest @11.50% per annum with monthly rests. The defendants failed to adhere to the terms and conditions and despite request did not make the repayment and hence their account was declared Non-Performing Assets on 30.06.2012. On

30.04.2016, a sum of ₹20,42,410.06p 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. They did not put in appearance and Defendant nos. 1 to 3 were proceeded ex parte on 10.10.2017 and Defendant nos. 4 and 5 were proceeded ex parte on 25.07.2018.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Mohammad Muzaffar Mufti, Executive Manager Law, 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 ₹16.00 Lacs and on 30.04.2016, a sum of ₹20,42,410.06p was due.

6. Accordingly, the case of the bank for the recovery of ₹20,42,410.06p (Rupees Twenty Lacs Forty Two Thousand Four Hundred Ten and Paise Six Only) with interest @11.50% per annum with monthly rests from 04.07.2016, 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 hypothecated assets fully detailed in para Nos.5, 8, 11, 14 and 17 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 11.08.2026, who is directed to distribute the sale proceeds of the

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: 08.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA