JAMMU AND KASHMIR BANK LIMITED vs M/S FAH HANDMADE PAPER AND PAPER PRODUCTS on 10 July 2026

ORDER

1. On 31.07.2021, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹34,49,807.88p with interest against M/s Fah Handmade Paper and others (defendants) in the Court of Principal District Judge (Bank Cases) Srinagar. However, vide order dated 21.02.2023, Additional District Judge, (Bank Cases), Srinagar, transferred this suit to DRT-I, Chandigarh.

2. Defendant no.1 is a proprietorship firm of Defendant no.2 and engaged in the business of handmade paper and paper products. Bank’s case is that on 22.08.2014, it had granted a loan of ₹5.00Lacs 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 hypothecated assets and defendant No.4 mortgaged her land (fully detailed in para No.5 of the application). Defendant Nos.2 and 3 stood as guarantors for the C.C. limit vide Deed of Guarantee dated 12.12.2012. 2A. Again on 20.11.2014, at the request of the defendants, bank granted a W.C.T.L. of ₹5,31,729/- under Rehabilitation/Revival and Relief package for the persons affected by natural calamity in J&K to defendant No.1 through its proprietor defendant No.2 for Business purpose. 2B. In the year 2016, defendant No.1 through defendant No.2 also availed a Credit Card Loan of ₹50,000/-. On 26.05.2016, at the request of the defendants, bank enhanced the existing C.C. limit from ₹5.00Lacs to ₹12.00Lacs. To secure the enhanced limit, Defendant No.4 extended charge over her mortgaged. Defendant No.4 stood as guarantor for the enhanced C.C. Limit vide Deed of Guarantee dated 03.06.2016. 2C. Again on 20.11.2014, bank granted a Car Loan of ₹1.50 Lacs to defendant No.2 for Vehicle Purpose. Again on 13.02.2017, during the period spanning from July 2016 to December 2016, due to turmoil resulting in the State of J&K, bank granted additional C.C. Limit of ₹2.40 Lacs under Rehabilitation/Revival package and re-organized it into a C.C. Limit of ₹14.40 Lacs and granted a W.C.T.L. of ₹2,38,725/- to defendant No.1 through its proprietor defendant No.2 for Business purpose. To secure the above said loan facilities, Defendant No.1 hypothecated assets and defendant No.4 extended her charge over the mortgaged land (fully detailed in para No.21 of the application). Defendant Nos.2 and 3 stood as guarantors for the C.C. limit and W.C.TL. vide Deed of Guarantee dated 09.02.2017. The loans were

chargeable to different rates of interest. On 31.03.2021, total sum of ₹34,49,807.88p (₹31,34,704.10p in Cash Credit Account; ₹27,735/- in WCTL – Flood Rehabilitation; ₹1,26,555/- in WCTL – Rehabilitation; ₹26,195/- in Car Loan; ₹1,17,529.88 p in Credit Card) 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, which were duly served. Vide order dated 10.10.2023. After transfer of this suit, summonses were sent to the defendants which were duly served. The defendants moved an IA/1040/2023 for setting aside ex parte order. However, they did not put in appearance and IA was dismissed in default vide order dated 06.12.2023.

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 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 loans under various schemes and on 31.03.2021, a sum of ₹34,49,807.88p was due.

6. Accordingly, the case of the bank for the recovery of ₹34,49,807.88p (Rupees Thirty Four Lacs Forty Nine Thousand Eight Hundred Seven and Paise Eighty Eight Only) with interest @10.85% per annum with monthly rests from 31.07.2021, till the date of payment is hereby allowed with costs. The liability of defendant nos. 1 to 4 would be joint and several for the amount due in C.C. Limit and W.C.T.L. – Rehabilitation Account. The Liability of Defendant nos. 1 and 2 would be joint and several for the amount due in W.C.T.L. – Flood Rehabilitation, Car Loan and Credit Card Account. Bank can recover its

dues by the sale of mortgaged land fully detailed in para Nos. 21 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 13.08.2026.

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: 10.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA