PUNJAB NATIONAL BANK vs M/S S.K. AUTOMOBILES on 11 August 2026

ORDER

1. On 19.04.2012, Punjab National Bank, filed the suit for the recovery of ₹26,03,508/- with interest against M/s S.K. Automobiles and others (defendants) in the District Court, Srinagar. However, vide order dated 01.11.2022, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.

2. Defendant no.1 is the proprietorship firm of Defendant no.2 engaged in the business of sale of spare parts of Maruti Vehicles and Defendant nos. 3 and 4 are the guarantors. Bank’s case is that on 17.07.2006, it had granted a loan of ₹5.00Lacs 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 his land (fully detailed in para No.5 of the plaint) and Defendant no.1 had hypothecated assets (fully detailed in para no.16 of the plaint). Defendant no.3 stood as the guarantor. The limit was enhanced and renewed and lastly on 04.05.2009 for ₹16.00Lacs. The loan was chargeable to interest @14.25% per annum with monthly rests. 2A. On 23.05.2008, Bank granted a loan of ₹3.00Lacs in the form of Home Loan under Housing Loan Scheme for repairs and renovation to Defendant no.2. To secure the loan, Defendant no.2 had mortgaged his land (fully detailed in para No.5 of the plaint). Defendant no.4 stood as the guarantor. The loan was chargeable to interest @11.50% per annum with monthly rests. On 16.04.2012, a sum of ₹26,03,508/-was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

3. The Civil Court sent summons 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 06.10.2023 which were duly served. However, defendants did not put in appearance and vide order dated 21.03.2025, they were proceeded ex parte..

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Showket Ahmed, Senior Manager, 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 total loan of ₹19.00Lacs and on 16.04.2012, a sum of ₹26,03,508/- was due.

6. Accordingly, the case of the bank for the recovery of ₹26,03,508/- (Rupees Twenty Six Lacs Three Thousand Five Hundred and Eight

Only) - ₹22,35,164/- with interest @14.25% per annum with monthly rests in the Cash Credit Account-I and ₹3,68,344/- with interest @11.50% per annum with monthly rests in the Housing Loan from 19.04.2012, till the date of payment is hereby allowed with costs. The liability of defendant nos. 1 to 3 would be joint and several for the amount due in Cash Credit Account. The liability of defendant nos. 2 and 4 would be joint and several for the amount due in Housing Loan. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.5 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 14.09.2026.

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: 11.08.2026 Presiding Officer DRT-1, Chandigarh