JAMMU AND KASHMIR BANK LIMITED vs M/S A.A AGENCIES on 1 August 2026

ORDER

1. On 14.03.2019, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹21,86,681.13p with interest against M/S A.A. Agencies and others (defendants) in the Court of Principal District Judge at Srinagar. However, vide order dated 24.01.2023, Additional District Judge, (Bank Cases), Srinagar, transferred this suit to DRT-I, Chandigarh.

2. Bank’s case is that on 15.10.2006, it had granted a loan of ₹6.75 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.4 of the application).

Defendant Nos. 2 and 3 stood as guarantors vide Deed of Guarantee dated 28.11.2006. On 31.03.2009, the loan was restructured and Rs.7.50Lacs was outstanding out of which the bank converted Rs.1.00Lac into a W.C.T.L. Limit. On 31.03.2015, the defendants acknowledged their liability towards the debt by executing a D.P Note of Rs.1,79,081/-. On 24.11.2018, the defendants acknowledged their liability towards the debt by executing a D.P. Note of Rs.17,41,430.13p. The loans were chargeable to different rates of interest. On 28.02.2019, a sum of ₹21,86,681.13p 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. After transfer of this suit, summonses were sent to the defendants which were duly served. However, they did not put in appearance. Vide order dated 06.02.2026, they were proceeded ex parte.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Jaweed Ahmad Shera, 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 total loan of ₹7.50 Lacs and on 28.02.2019, total sum of ₹21,86,681.13p was due.

6. Accordingly, the case of the bank for the recovery of ₹21,86,681.13p (Rupees Twenty One Lacs Eighty Six Thousand Six Hundred Eighty One and Paise Thirteen Only) with interest @12% per annum with monthly rests from 14.03.2019, 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 No.5 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 03.09.2026, 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: 01.08.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA