JAMMU AND KASHMIR BANK LIMITED vs M/S J. K. JEWELLERS on 15 July 2026

ORDER

1. On 03.09.2019, J & K Bank, filed the suit for the recovery of Rs.87,76,785/- with interest against M/s J. K. Jewellers & Others (defendants) in the Additional District Judge, (Bank Cases), Srinagar. However, vide order dated 18.01.2023, 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 07.04.2004, it had granted Cash Credit Limit of Rs.6.50 lacs to defendant no.1 through its partners Defendant nos.2 and 3 for business purpose. Thereafter, the said Cash Credit Limit

was enhance and renewed from time to time and lastly, on 28.11.2017, renewed at Rs.70.00 lacs. To secure the loan, Defendant nos.2 and 3 had mortgaged their immovable properties (fully detailed in para Nos.4, 6, 9, 17 of the application). The loan was chargeable to interest @15.50% per annum with monthly rests. 2(i). Again, on 20.11.2013, at the request of defendant no.2, bank had granted Term Loan/Car Loan of Rs.5.25 lacs for purchase of Honda Amaze Car. The said loan facility was chargeable to interest @11.25% per annum with monthly rests. Defendant nos.3 to 5 stood as guarantor vide executed deed of guarantee dated 21.11.2013 as Annexure-XX. 2(ii). Thereafter, on 24.01.2017, at the request of defendant nos.1 to 3, bank had granted fresh WCTL of Ra.14.09 lacs against the existing CC Limit of Rs.70.00 lacs. The said loan facility was chargeable to interest @9.50% per annum with monthly rests. On 18.07.2019, a sum of Rs.87,76,785/- was due from the defendants i.e. Rs.85,61,647/- was due in Cash Credit Limit and Rs.2,15,138/- was due in Term Loan/Car Loan. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

3. On 06.10.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 08.11.2024, they were proceeded ex parte.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Jaweed Ahmed Shera, Executive Manager Law, along with the 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 Cash

Credit Limit of Rs.70.00 lacs and Term Loan/ Car Loan of Rs.5.25 lacs. On 18.07.2019, a sum of Rs.87,76,785/- was due from the defendants i.e. Rs.85,61,647/- was due in Cash Credit Limit and Rs.2,15,138/- was due in Term Loan/Car Loan.

6. Accordingly, the case of the bank for the recovery of Rs.87,76,785/- (Rupees Eighty Seven Lacs Seventy Six Thousand Seven Hundred Eighty Five Only) with interest @15.50% per annum with monthly rests from 19.07.2019, till the date of payment is hereby allowed with costs. Out of which, Rs.85,61,647/- due in Cash Credit shall be paid by defendant nos.1 to 3 jointly and severally and Rs.2,15,138/- due in Term Loan/ Car Loan shall be paid by defendant nos.2 to 5 jointly and severally. Bank can recover its dues by the sale of mortgaged property i.e. land admeasuring 4 Kanal situated at Balhama, Pantha Chowk bearing Khasra No.194, 195, 195/1, Khata No.177, 181 and Khewat No.23 in the name of Mr. Khurshid Ahmed S/o Ghulam Rasool Rartha i.e. defendant no.2 and hypothecated stocks/goods/car, 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 17.08.2026, who is directed to distribute the sale proceeds of the mortgage property and hypothecated stocks/goods/car 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: 15.07.2026 Presiding Officer DRT-1, Chandigarh