JAMMU AND KASHMIR BANK LIMITED vs M/S SAJAD AHMAD BHAT on 31 August 2026

ORDER

1. On 25.11.2021, Jammu and Kashmir Bank Limited, filed the suit for the recovery of ₹24,08,471.05p with interest against M/s Sajad Ahmad Bhat and others (defendants) in the Court of Principal District Judge Srinagar. However, vide order dated 21.02.2023, the Court of Additional District Judge, (Bank Cases), Srinagar transferred this suit to DRT-I, Chandigarh.

2. Bank’s case is that on 14.03.2017, it had granted a loan of ₹5.00 Lacs to defendant No.1 through its proprietor defendant No.2 in the form of C.C Limit-I under Saholiat/Saral finance Scheme for business purpose. Defendant Nos.3 and 4 stood as guarantors for C.C. Limit-I of ₹5.00 Lacs vide Guarantee agreement dated 18.03.2017. The loan was chargeable to interest @14.40% per annum with monthly rests. 2A. On 28.08.2018, at the request of the defendants, bank granted C.C. Limit-II of ₹15.00 Lacs to defendant No.1 through its proprietor defendant No.2 for Business purpose. Defendant Nos.5 and 6 stood as guarantors for the C.C. Limit-II of ₹15.00 Lacs vide Deed of Guarantee dated 10.09.2018. To secure the loan facilities, Defendant No.2 hypothecated assets (fully detailed in para No.6 of the plaint). The loan was chargeable to interest @12.40% per annum with monthly rests. On 31.10.2021, a sum of ₹24,08,471.05p 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 by registered post. Defendant nos. 1, 2, 5 and 6 were proceeded ex parte. After transfer of this suit, summonses were sent to the defendant nos. 3 and 4 but they did not put in appearance. Vide order dated 14.10.2024, 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, Executive Manager 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 total loan of ₹20.00 Lacs (₹5.00 Lacs in C.C. Limit-I; ₹15.00 Lacs in C.C. Limit- II) and on 31.10.2021, a sum of ₹24,08,471.05p was due.

6. Accordingly, the case of the bank for the recovery of ₹24,08,471.05p (Rupees Twenty Four Lacs Eight Thousand Four Hundred Seventy One and Paise Five Only) ₹19,19,915.05p with interest @12.40% per annum with monthly rests in the Cash Credit Limit-II and ₹4,88,556/- with interest @14.40% per annum with monthly rests in the Consumption Loan (C.C. Limit-I) from 25.11.2021, till the date of payment is hereby allowed with costs. The liability of defendant nos. 1 to 4 would be joint and several for the amount due in the C.C. Limit-I. The liability of defendant nos. 1, 2, 5 and 6 would be joint and several for the amount due in the C.C. Limit-II. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.6 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 01.10.2026.

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: 31.08.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA