BANK OF INDIA vs M/S NIRMAL RICE MILLS on 10 August 2026

ORDER

1. On 09.09.2016, Bank of India filed the suit for the recovery of ₹1,05,38,173/- with interest against M/s Nirmal Rice Mills and another (defendants) in the District Court, Jammu. However, vide order dated 22.02.2023, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.

2. Defendant no.1 is a proprietorship firm and Defendant no.2 is its proprietor engaged in the business of Rice Mills. Bank’s case is that on 12.05.2015, it had granted a loan of ₹75.00Lacs in the form of C.C. Limit, ₹12.80Lacs in the form of Term Loan (Building Type) and ₹11.70Lacs in the form of Term Loan (Machinery), aggregating to ₹99.50Lacs to defendant no.1 through its proprietor in the form of C.C. Limit for business purpose. To secure the loan, Defendant no.2 had mortgaged land (fully detailed in para No.7 of the plaint). The loan was

chargeable to interest @14.60% per annum with monthly rests. On 31.08.2016, a sum of ₹1,05,38,173/- 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. After receiving the file by transfer from Jammu, this Tribunal sent summonses to the defendants by registered post on 30.01.2025 which were duly served. However, defendants did not put in appearance and vide order dated 14.07.2026, they were proceeded ex parte.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Krishan Lal, Authorised Officer, 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 loan of ₹99.50Lacs and on 31.08.2016, a sum of ₹1,05,38,173/- was due.

6. Accordingly, the case of the bank for the recovery of ₹1,05,38,173/- (Rupees One Crore Five Lacs Thirty Eight Thousand One Hundred and Seventy Three Only) with interest @14.60% per annum with monthly rests from 31.08.2016, 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 mortgaged land fully detailed in para No.7 of the plaint 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 11.09.2026.

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: 10.08.2026 Presiding Officer DRT-1, Chandigarh