JAMMU AND KASHMIR BANK LIMITED vs RAFI AHMAD WANI on 17 July 2026

ORDER

1. On 19.01.2021, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹1,49,39,577.12p with interest against Rafi Ahmad Wani and others (defendants) in the Court of Ld. Principal District Judge, Anantnag. However, vide order dated 31.01.2023, this suit was transferred by the Court of Ld. Principal District Judge, Anantnag, to DRT-I, Chandigarh.

2. Bank’s case is that on 29.09.2011, it had granted Term Loan of ₹54.60Lacs to defendant No.1 for business purpose. To secure the Term Loan, Defendant Nos.2 and 3 stood as guarantors for the Term Loan. On

02.08.2014, at the request of the defendants, bank granted C.C. Limit of ₹27.00Lacs to defendant No.1 for Business purpose. Defendant Nos.3 and 4 stood as guarantors for the C.C. Limit. To secure the C.C. Limit of ₹27.00 Lacs, Defendant No.1 had mortgaged his property and hypothecated assets (fully detailed in para No.15 of the application). 2A. Again on 28.03.2015, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹27.00 Lacs to ₹80.00 Lacs. Defendant Nos.3 and 4 stood as guarantors for the enhanced C.C. Limit. To secure the Loan, Defendant No.1 extended his charge on the mortgaged property (fully detailed in para No.22 of the application). 2B. Again on 08.02.2017, at the request of the defendants, bank granted W.C.D.L. of ₹16.00 Lacs to defendant No.1 under Rehabilitation Scheme for Business purpose. Defendant Nos.3 and 4 stood as guarantors for the W.C.D.L. Limit. To secure the W.C.D.L. of ₹16.00 Lacs, Defendant No.1 had extended charger over the mortgaged property (fully detailed in para No.29 of the application). All the loan facilities were chargeable at different rates of interest. On 31.12.2020, total sum of ₹1,49,39,577.12p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

3. Defendant no.1 had filed his written statement before the Court of Ld. Principal District Judge, Anantnag wherein he has alleged that the suit was instituted by unauthorized person; the C.C. Limit was sanctioned after the recommendation of National Horticulture Board and paid subsidy of ₹32.00Lacs which has been misused by the Bank; the defendant was made to sign on documents without knowing the contents of the same; the property claimed to be mortgaged by the bank for earlier loan was mortgaged by the bank without clearing the first loan facility; Annexure D1 to D7, Annexure F, Annexure G, Annexure I-1 to I-6,

Annexure J, Annexure K, Annexure L, Annexure M, Annexure N1 to N8, Annexure O and P, Annexure Q, Annexure R1 to RS, Annexure T1 to T2 are void; the amount calculated by the bank is incorrect. 3A. After transfer, summonses were sent to the Defendants which were duly served. However, they did not put in appearance and were proceeded ex parte on 17.02.2025.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Mir Waseem, Authorized Officer, 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 31.12.2020, a sum of ₹1,49,39,577.12p (₹1,17,48,770.62p in the C.C. Limit; ₹23,64,858.50p in the Term Loan; ₹8,25,948/- in the W.C.D.L.) was due.

6. Accordingly, the case of the bank for the recovery of ₹1,49,39,577.12p (Rupees One Crore Forty Nine Lacs Thirty Nine Thousand Five Hundred Seventy Seven and Paise Twelve Only) with interest @15.00% per annum with monthly rests from 19.01.2021, till the date of payment is hereby allowed with costs. The liability of defendant No.1 to 3 would be joint and several for the amount due in Term Loan, liability of defendant Nos.1, 3 and 4 would be joint and several for the amount due in C.C. Limit and W.C.D.L. Bank can recover its dues by the sale of mortgaged land and hypothecated assets fully detailed in para Nos.29 of the application as well as from the personal movable and immovable property(ies) of the defendants accordingly.

7. Pending IAs, if any, stand disposed of.

8. Recovery Certificate be issued accordingly.

9. Parties are directed to appear before Recovery Officer on 18.08.2026, 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: 17.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA