JAMMU AND KASHMIR BANK LIMITED vs MST SHAMEMA on 17 August 2026

ORDER

1. On 24.11.2014, Jammu and Kashmir Bank Ltd. filed the suit for the recovery of Rs.3,50,60,019/- with interest against Mst. Shamema and others (defendants) in the Court of the Principal District Judge, Srinagar. However, vide order dated 02.11.2022, this suit was transferred by the Court of the Additional District Judge (Bank Cases), Srinagar, to DRT-I, Chandigarh.

2. Defendant Nos.1 to 3 are the legal heirs of the deceased borrower, Ghulam Mohammad Beigh, Sole Proprietor of Beigh Trading Corporation. Defendant Nos.4 and 5 stood as Guarantors for the limits availed by the deceased borrower. Bank’s case is that on 30.03.2000, it had granted a Cash Credit facility of Rs.9.60 lacs to the deceased borrower for business purpose. Thereafter, this limit was enhanced from time to time at the request of the borrower and was lastly renewed on 26.11.2008 at Rs.140 lacs. To secure the limit, the deceased borrower had hypothecated stocks (fully detailed in Para No.28 of the plaint) and mortgaged his properties (fully detailed in Para No.28 of the plaint). Initially, Defendant No.4 and Mohammad Ayaz Khan stood as Guarantors for the above Cash Credit facility but vide deed dated 26.11.2008 defendant Nos.4 and 5 stood as Guarantors. The Cash Credit facility was chargeable to interest @16% per annum with monthly rests. On 09.10.2009, Bank had granted a Term Loan of Rs.28 lacs to the deceased Borrower. The term loan was chargeable to interest @15% per annum with monthly rests. To secure the loan, the borrower had mortgaged his properties (fully detailed in Para No.32 of the plaint). On 03.02.2014 and 14.10.2014, Bank had served a recall notice of bank's dues upon the defendants. On 24.11.2014, a sum of Rs.3,50,60,019/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this suit.

3. The Civil Court sent summonses to the defendants. However, they did not put in appearance. Hence, vide order dated 11.05.2015, defendant No.4 was proceeded ex parte; vide order dated 19.09.2015, defendant No.5 was proceeded ex parte; and vide order dated 11.05.2022, defendant Nos.1 to 3 were proceeded ex parte. After transfer, none of the defendants have put in appearance.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Mohsin ul Haque, Executive Law, 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 Cash Credit facility of Rs.140 lacs and a Term Loan of Rs.28 lacs and on 24.11.2014, a sum of Rs.3,50,60,019/- (CC facility: Rs.2,94,20,412.79p; Term Loan: Rs.56,39,606.21p) was due.

6. Accordingly, the application of the Bank for the recovery of Rs.3,50,60,019/- (Rupees Three Crores Fifty Lacs Sixty Thousand and Nineteen Only) – Rs.2,94,20,412.79p with interest @16% per annum with monthly rests in CC facility and Rs.56,39,606.21p with interest @15% per annum with monthly rests in Term Loan from 24.11.2014, till the date of payment is hereby allowed with costs. The liability of the LRs of the deceased borrower, i.e., defendant Nos.1 to 3 would be limited to the extent of properties inherited by them from the estate of the deceased borrower for the whole decretal amount. Defendant Nos.4 and 5 will be liable for the amount due under Cash Credit facility of Rs.140 lacs as per the documents executed by them. Bank can recover its dues by the sale of hypothecated stocks (fully detailed in Para No.28 of the plaint) and mortgaged properties (fully detailed in Para Nos.28 and 32 of the plaint), as well as from the personal movable and immovable property(ies) of the defendant Nos.4 and 5.

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

8. Recovery Certificate be issued accordingly.

9. Parties are directed to appear before Recovery Officer on 21.09.2026, who is directed to distribute the sale proceeds of the mortgaged property 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: 17.08.2026 Presiding Officer DRT-1, Chandigarh HARSH