Allowed

Jammu and Kashmir Bank Limited v. M/S Shafi Pashmina Weavers

DRT11 Feb 2025OA/338/2024

Case brief

AI extract

What is this about?

Presiding Officer allowed an application under Section 19 of the RDB Act for recovery of Rs. 25,37,999.52 plus interest by Jammu & Kashmir Bank Ltd. against the respondent firm and guarantors, proceeding ex parte due to non-appearance, and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.25,37,999.52 with interest, issuance of Recovery Certificate, and direction to sell hypothecated stocks.

Jammu and Kashmir Bank Limited versus M/S Shafi Pashmina… — Company and Corporate | DRT (2025)

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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: 338 of 2024 Date of Institution: 27.12.2023 Date of Decision: 11.02.2025

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Jammu & Kashmir Bank Ltd. having its branches all over India and a branch at having its branch office at Alamgari Bazar, Srinagar

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……..Applicant Vs.

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M/s Shafi Pashmina Weavers Through its proprietor Mohammed Shafi Bhat R/o Wantepora Rajouri-Kadal, Srinagar, Jammu & Kashmir.

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Mohammed Shafi Bhat S/o Mr. Ghulam Ahmad Bhat R/o Wantepora Rajouri-Kadal, Srinagar, Jammu & Kashmir.

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Mr. Jan Mohd. Sofi S/o Mr. Gul Muhammed Sofi R/o Rathpora, Iddgah, Srinagar, Jammu & Kashmir.

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Mr. Shahnawaz Ahmed Sofi S/o Mr. Gul Muhammed Sofi R/o Rathpora, Iddgah, Srinagar, Jammu & Kashmir. ……….Defendants

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Advocates

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Sh.Amit Rishi, Counsel for the applicant bank. Defendants - ex parte .

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OA for the Recovery of Rs.25,37,999.52p with interest @14.25% per annum with monthly rests from 27.12.2023.

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ORDER

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Jammu & 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. 25,37,999.52p with interest against M/s Shafi Pashmina Weavers and others (defendants).

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Bank’s case is that defendant no. 1 is the proprietorship firm of Defendant no. 2. On 26.08.1995, it had granted a loan of Rs. 30,000/- in the form CC Limit, which was duly enhanced from time to time. In the year 2016, it was enhanced upto Rs.12.00 Lacs and it had also granted a

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loan of Rs.2.40 Lacs in the form of WCDL to Defendant no. 1, for business purposes. To secure the loan, Defendant nos. 1 and 2 had hypothecated stocks/assets (fully detailed in para No.3A of the application). Defendant nos. 3 and 4 stood as the guarantors. The loan was chargeable to different rates of interest. On 31.07.2023, a sum of Rs.25,37,999.52p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 12.03.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 04.11.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Ashish Bhasin, Authorised Officer along with the loan and security documents and marked them as Exhibit A-1 to A-62. 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 loans under different schemes and on 31.07.2023, a sum of Rs. 25,37,999.52p was due.

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Accordingly, the application of the bank for the recovery of Rs.25,37,999.52p (Rupees Twenty Five Lacs Thirty Seven Thousand Nine Hundred Ninety Nine and Fifty Two Paisa Only) with interest @14.25% per annum with monthly rests from 27.12.2023, 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 hypothecated stocks fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 13.03.3025, who is directed to distribute the sale proceeds of the hypothecated stocks 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: 11.02.2025 Presiding Officer DRT-1, Chandigarh

Jammu and Kashmir Bank Limited v. M/S Shafi Pashmina Weavers

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Bank Limited v. M/S Shafi Pashmina Weavers

Case brief

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What did the court decide?

What the court decided

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