Debts Recovery Tribunals and Appellate Tribunals
JAMMU AND KASHMIR BANK LIMITED vs M/S BABA LEATHER WORKS on 9 July 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 124/2023
Date of Institution: 31.10.2020
Date of Decision: 09.07.2026
Jammu and Kashmir Bank Ltd, B/u Zaldagar, Srinagar.
...Applicant
Vs.
1. M/S Baba Leather Works
Through its Proprietor
Altaf Hussain Baba
S/o Ghulam Qadir Baba
R/o Budshah Nagar Natipora, Srinagar.
(BORROWER)
2. Imtiyaz Ahmad Mir
S/o Late Ghulam Rasool Mir
R/o Budshah Nagar Block-C Natipora, Srinagar.
3. Abdul Salam Baba
S/o Abdul Samad Baba
R/o Ganzkhud Jamalatta, Srinagar.
4. Mr. Ghulam Qadir Baba
S/o Habibullah Baba
R/o H No 287/ C Batpora, Budshah Nagar.
5. Mrs Parvaiz Ara
D/o Ali Mohammad Mir
R/o Masjid Al Farooq Housing Colony
Bemina, Srinagar.
(GUARANTORS)
...Defendants
Advocates
Mr. Sunpreet Singh, proxy Counsel for Ms. P.S. Sobti, Counsel for the applicant bank.
Defendants – ex parte.
TA for the Recovery of Rs.27,99,047.79/- with interest @11.50% per annum with monthly rests from 31.10.2020.
Citations and Judicial Treatment
Cited by
0
Decisions in the index citing it
Cites
0
Decisions referred to
In this index
0
Of the decisions it cites
Overruled / Questioned
0
No negative treatment found
Loading the citing and cited decisions…
This judgment in the centre: on the left the decisions it cites, on the right the decisions citing it. Colour is the treatment; choose a decision to open it.
ORDER
1. On 31.10.2020, Jammu and Kashmir Bank Ltd. filed the suit for the recovery of Rs.27,99,047.79/- with interest against M/s Baba Leather Works and others (defendants) in the Court of the Additional District Judge
(Bank Cases), Srinagar. However, vide order dated 01.12.2022, this suit was transferred by the Court of the Additional District Judge (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Bank’s case is that on 31.10.2003, it had granted a Cash Credit Facility of Rs.1.00 lac with interest @11.39% to defendant No.1, through its proprietor for business purpose. To secure the loan, defendant No.1, through its proprietor, had hypothecated its assets (fully detailed in the Hypothecation Deed: Annexure P-8). Defendant Nos.2 to 5 stood as Guarantors (Guarantee Deed attached to the plaint as Annexure P-10). On 27.07.2004, Bank enhanced the existing Cash Credit Facility from Rs.1.00 lac to Rs.3.00 lacs, chargeable to interest @12% per annum with monthly rests. After enhancement, Defendant Nos.3 to 5 stood as Guarantors (Guarantee Deed attached to the plaint as Annexure P-20). On 30.09.2020, a sum of Rs.27,99,047.79/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this suit.
3. On 28.03.2023, summonses were sent to the defendants by registered post, which were duly served. However, the defendants did not put in appearance. Vide order dated 19.02.2025, defendants were proceeded ex parte.
4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Jaweed Ahmad Shera, Executive Law, along with the loan and original 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 Cash Credit Facility of Rs.3.00 lacs and on 30.09.2020, a sum of Rs.27,99,047.79/- was due.
6. Accordingly, the application of the Bank for the recovery of Rs.27,99,047.79/- (Rupees Twenty-Seven Lacs Ninety-Nine Thousand Forty-Seven and Paise Seventy-Nine Only) with interest @11.50% per annum with monthly rests from 31.10.2020, till the date of payment is hereby allowed with costs. Guarantors are liable to pay their dues as per the Guarantee Deeds executed by them. Bank can recover its dues by the sale of hypothecated assets (fully detailed in the Hypothecation Deed: Annexure P- 8), 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 10.08.2026, 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: 09.07.2026 Presiding Officer DRT-1, Chandigarh HARSH