Allowed

Jammu and Kashmir Bank Limited v. Late Sh. Shabir Ahmad Zaz

DRT24 Apr 2024OA/1417/2022

Case brief

AI extract

What is this about?

In an Original Application filed by Jammu And Kashmir Bank Ltd. for recovery of dues from the legal heirs of a deceased borrower, the Tribunal found the loan advance. The court allowed the application for recovery, holding the legal heirs liable only up to the value of the inherited property.

What did the court decide?

Recovery of Rs.57,14,452.50p with interest allowed; Legal heirs liable to pay out of inherited property; Sale of mortgaged property and hypothecated stocks ordered to recover dues.

Jammu and Kashmir Bank Limited versus Late Sh. Shabir Ahmad Zaz — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1417 of 2022 Date of Institution: 27.05.2022 Date of Decision: 24.04.2024

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The Jammu And Kashmir Bank Ltd., having its Registered Corporate Office at M.A. Road, Srinagar and Branch Office amongst others at Residency Road, Srinagar, Jammu and Kashmir.

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……..Applicant

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Vs.

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Late Sh. Shabir Ahmad Zaz, proprietor M/s Crystal Water, since deceased survived by following legal heirs:-

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1A. Mrs. Akhtar Jan, Widow

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1B. Ms. Nayyar Shabir, Daughter

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1C. Ms. Aiman Shabir, Daughter

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All Residents of Naseemabad, Saderbal, Srinagar, Jammu and Kashmir

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……….Defendants

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Advocates

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Sh .Sumit Batra, Counsel for the applicant bank.

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Ms. Aarti Aman Arora, Counsel for LRs of defendant.

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OA for the Recovery of Rs.57,14,452.50p with interest @12.15% per annum with monthly rests from 01.05.2022.

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ORDER

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The Jammu And Kashmir Bank Ltd., (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.57,14,452.50p with interest against Legal Heirs of Late Sh. Shabir Ahmad Zaz (defendants).

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Bank’s case is that defendant/ Sh. Shabir Ahmad Zaz was the proprietor of M/s Crystal Water. On 22.09.2017, bank had granted SOD Limit of Rs.70.00 lacs to Sh. Shabir Ahmad Zaz (since deceased) for business purpose. To secure the loan, Sh. Shabir Ahmad Zaz (since deceased) had mortgaged his immovable property and also created

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hypothecation of stocks/book debts (fully detailed in para No.3A of the application). The loan was chargeable to interest @12.15% per annum with monthly rests. On 30.04.2022, a sum of Rs.57,14,452.50p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 09.08.2023, LRs of Late Sh. Shabir Ahmad Zaz/ defendant filed written statement, wherein they alleged that as per Section 50 of CPC, a judgment debtor dies before the decree has been fully satisfied, the holder of the decree may apply to the court, which passed it to execute the same against the legal representatives of the deceased and secondly, the decree is executed against such legal representative, he shall be liable only to the extent property of the deceased which has come to his hands and has not been duly disposed of.

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Umesh Sharma, Authorized Representative along with the loan and security documents and marked them as Exhibit A-1 to A- 16. 5. During the proceedings, vide order dated 14.02.2024 passed by this Tribunal, defendant no.2 i.e. The Superintending Engineer, Drainage Circle, SMC, Srinagar, was deleted from the array of parties. The relevant extract of the order dated 14.02.2024 is reproduced herein below:-

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“In view of this, The Superintendent Engineer, Hydraulic
Circle, Ganderbal is directed to release the sum of Rs.23.80 lacs
to the applicant bank. The Superintendent Engineer, Hydraulic
Circle, Ganderbal is also directed that it would not make the
payment and The Superintendent Engineer, Hydraulic Circle,
Ganderbal would itself be responsible for the payment to the
bank, in the loan account. It is made clear that this order has
been passed with the consent of counsel for the applicant bank as
well as counsel for LRs of defendant no.1.
It is hereby ordered that defendant no.2 be deleted from the array of parties.”

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6. I have perused the evidence on the record. LRs of Defendant have led no evidence to prove the contentions raised in their written statement. I am of the considered view that the Bank has proved its case that it had
advanced the loan of Rs.70.00 lacs and on 30.04.2022, a sum of
Rs.57,14,452.50p was due.
7. Accordingly, the application of the bank for the recovery of
Rs.57,14,452.50p (Rupees Fifty Seven Lacs Fourteen Thousand Four
Hundred Fifty Two And Paisa Fifty Only) with interest @12.15% per
annum with monthly rests from 01.05.2022, till the date of payment is
hereby allowed with costs. The LRs of deceased Sh. Shabir Ahmad Zaz
would be liable to pay to the extent of property inherited by them from
Sh. Shabir Ahmad Zaz (Since deceased). Bank can recover its dues by
the sale of mortgaged property and hypothecation of stocks/book debts
{fully detailed in para No.3A of the application} only.
8. Pending IAs, if any, stand disposed of.
9. Recovery Certificate be issued accordingly.
10. Parties are directed to appear before Recovery Officer on
24.05.2024, who is directed to distribute the sale proceeds of the
mortgage property and hypothecated stocks/book debts as per the
provisions of Section 19(20-AB) of the Act.
11. 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: 24.04.2024 Presiding Officer DRT-1, Chandigarh

Jammu and Kashmir Bank Limited v. Late Sh. Shabir Ahmad Zaz

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Bank Limited v. Late Sh. Shabir Ahmad Zaz

Case brief

What is this about?

What did the court decide?

What the court decided

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