Allowed

Jammu and Kashmir Bank Limited v. M/S Shabir Ahmad Qazi

DRT29 May 2025OA/766/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Jammu and Kashmir Bank Limited for the recovery of Rs.22,31,228 plus interest from a sole proprietorship firm and its guarantor, who failed to repay an overdraft facility.

What did the court decide?

Order allowed recovery of Rs.22,31,228 with interest; Recovery Certificate issued with costs; sale proceeds of hypothecated stocks and property to be distributed.

Jammu and Kashmir Bank Limited versus M/S Shabir… — Contract and Commercial Disputes | 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: 766/2024 Date of Institution: 12.05.2024 Date of Decision: 29.05.2025

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Jammu and Kashmir Bank Limited having its branches all over India and a branch at Bone & Joint Hospital, Srinagar, J and K.

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……..Applicant

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Vs.

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M/s Shabir Ahmad Qazi through its sole proprietor Mr. Shabir Ahmad Qazi, r/o Near Masjid e Noorani, Rambagh Balla, Srinagar, Jammu and Kashmir.

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Mr. Shabir Ahmad Qazi s/o Mr. Abdul Hameed Qazi, r/o Near Masjid e Noorani, Rambagh Balla, Srinagar, Jammu and Kashmir.

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Mr. Irshad Rashid s/o Mr. Abdul Rashid, r/o Jawalapora, Budgam, Kashmir.

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……….Defendants

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Advocates

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Sh. Sumit Batra, Counsel for the applicant bank. Defendants- ex parte vide order dated 08.01.2025 .

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OA for the Recovery of Rs.22,31,228/- with interest @12.30% per annum with monthly rests from 12.05.2024.

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ORDER

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Jammu and Kashmir Bank Limited, (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,31,228/- with interest against M/s Shabir Ahmad Qazi and others (defendants).

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Defendant No.1 is a sole proprietorship firm of defendant No. 2. Bank’s case is that on 26.02.2019, it had granted a loan of Rs.13.50 Lacs to Defendant No.1 through its proprietor i.e. Defendant No. 2 in the form of Over Draft Facility for business purpose. Defendant no. 3 stood as the guarantor. To secure the loan, Defendant No.1 had hypothecated stocks

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and book debts (fully detailed in para No.3A of the application). The loan was chargeable to interest @12.30% per annum with monthly rests. On 30.03.2024, a sum of Rs.22,31,228/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 28.05.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 08.01.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Ashish Bhasin, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-18.

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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 loan of Rs.13.50 Lacs and on 30.03.2024, a sum of Rs.22,31,228/- was due.

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Accordingly, the application of the bank for the recovery of Rs.22,31,228/- (Rupees Twenty Two Lacs Thirty One Thousand Two Hundred Twenty Eight Only) with interest @12.30% per annum with monthly rests from 12.05.2024, 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 and book debts 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 09.07.2025, who is directed to distribute the sale proceeds of the

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hypothecated stocks and book debts 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: 29.05.2025 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Jammu and Kashmir Bank Limited v. M/S Shabir Ahmad Qazi

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Bank Limited v. M/S Shabir Ahmad Qazi

Case brief

What is this about?

What did the court decide?

What the court decided

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