Allowed

Jammu and Kashmir Bank Limited v. Redress Consultants Pvt. Ltd.

DRT17 Dec 2025TA/293/2024

Case brief

AI extract

What is this about?

DRT-II, Delhi allowed the bank's application for recovery under Section 19 of the RDB Act, 1993. The court rejected claims that the account was wrongly classified as NPA, signatures were obtained on blank documents, or interest rates were exorbitant, finding the bank's evidence superior and the cause of action valid. Respondents are directed to pay jointly and severally.

What did the court decide?

To pay jointly and severally Rs.44,94,868.69 with 13.75% interest from filing date; heirs' liability limited to inherited assets; recovery via sale of mortgaged and personal assets.

Jammu and Kashmir Bank Limited versus Redress Consultants Pvt… — Banking and Recovery | DRT (2025)

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Before SUSHIL KUMAR RASTOGI, Presiding Officer Debts Recovery Tribunal-Il, Delhi

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TA No.293 OF 2024

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THE JAMMU & KASHMIR BANK tTD VS REDRESS CONSULTANTS PvT LTD & ORS

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Reserved on : 08.12.2O25

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Pronounced on = L7.L2.2O25

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The Jammu & Kashmir Bank Limited^-Applicant bank Vs.

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Redress Consultants h^ Ltd

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Sheikh Irfan Farooq

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Tufail Ahmed Gilkar

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Sheikh Farooq Ahmed

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Gulam NabiGilkar

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(Since Deceased)

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Through His Legal Heirs

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(i). Tufail Ahmed Gilkar

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S/o Late Gulam Nabi Gilkar

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(ii). Sonu

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D/o Late Gulam Nabi Gilkar

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(iii). Nazneen

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Widow of Late Gulam Nabi Gilkar^- Defendants

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Present: Mr. Vinod Trisal, Counsel appears for applicant bank.

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Mr. Prem Chhetri, Counsel for defendant nos.1 to 4 and LRs'of defendant no.5.

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FINAL ORDER

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This original application has been filed by the applicant bank, on 16.01.2013 through Mr. Syed Mohammad Shabir Shah, Branch Manager/ Senior Executive of the applicant bank, under Section 19 of the RDB Act, 1993 againstthe defendants for recovery 5"\

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TANO.293 of 2024 2 of a sum of Rs.44,94,868.69 together with cost, charges and^{pendentellite} and future interest @L7o/o^{from date of filing of this O.A. till the realization} in full.

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The brief facts of the case are that at the request of the defendants, the applicant bank sanctioned a Term Loan Facility of Rs.31,00,000/- for the^purchase of machinery and equipments and Cash Credit^Facility of Rs.16,00,000/-, vide sanction letter dated 31.12.2009 against the mortgage of the^{propefties i.e.,} (i). A piece of Land measuring Two Kanals (2K) situated at Nagam, Chadoora, Budgam, Kashmir and as^per the revenue records falling under khasra No.1917 min, Khewat No.310 and Khata No.1573 of Estate Nagam, Tehsil Chadoora and District Budgam, Kashmir.^{(ii). A} piece of Land measuring Two Kanals (2K) situated at Nagam, Chadoora, Budgam, Kashmir and as^{per the} revenue records falling under khasra No.1917 min, Khewat No.310 and Khata No.1573 of Estate Nagam, Tehsil Chadoora and District Budgam, Kashmir.^{(iii). A} piece of Land measuring Ten Marlas (10M) situated at Devipora, Srinagar, Kashmir and as^per the revenue records falling under Khasra No.162l100 min, Khewat No.24 and Khata No.66 of Estate Devipora Tehsil Srinagar (North) and District Srinagar, Kashmir standing in the name of defendant no.3. The defendant nos.4 & 5 offered their^{personal guarantee} and accordingly stood guarantors for the defendant nos.l to 3. The defendant nos.2 & 3 executed all necessary loaning documents on 23.01.2010, 25.01.2010, 14.01.2010 and 09.01.2010. It is submitted that the nlrytnecation of book g'I

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TANO.293of2024 3

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debts/receivables are the^primary security in^the above account. It is submitted that during the pendency of the O.A, the defendant no.5/ Sh. Gulam Nabi Gilkar was died on 28.02.2013 and the^LRs of defendant no.5/ Sh. Gulam Nabi Gilkar^{were impleaded} in the present OA.

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It is further submitted that^{the defendants} enjoyed and utilized the Loan facility,^{but failed to} maintain the financial discipline and^{failed to repay the} due amounts. The applicant bank^requestedthe defendants to regularize the^{loan ac@unt by visitsand} letters, but there was no response from^the defendants, hence the account^{was classified as NPA} dated 30.06.2012. Therefore, the^{applicantbank} served a recall notice dated^{08.09.2012to the} defendants, demanding the amount^{due as on that} date, but failed to recover the^{same Thus, the present} O.A.ff.A. is^preferred by^{the applicant bank to re@ver} its dues.

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On notice by this^{Tribunal, defendantnos.1 to 4} and the LR's of defendant no.5^{put appearancethrough} counsel. The defendant nos, I^{to 4 have filed written} statement but only defendant^nos.1 &^{2 have filed} evidence.

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In the written statement the defendant^{nos.l to} 2 have denied the fact mentioned in the O.A. It^is submitted that the applicant bank^{illegally transferred} the account of the defendantigllto^{NPA without there} sa

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being ant sulficient reason to do e, hence the defendants are not liable to^pay any amount^{to the} applicant bank. It is further submitted that the applicant bank had illegally obtained signatures of the defendant nos.1 & 2 on a number of blank^documents in the usual format of the applicant bank from^time to time in respect of different facilities. It is submifted that the applicant bank had been charging^{un-explained,} unfounded, unreasonable, illegal,^{penal and excessive} rate of interest from the defendants. It is fufther submitted that Syed Mohammad Shabir Shah^who instituted, signed and verified the applicant is^neither competent not authorized to do so. It^{is submitted that} the statement of account annexed by the^applicant bank does not show the complete accounts^{of the} defendant no.1. The applicant bank^{has not filed the} complete statement of account. It^{is submittedthat the} O.A filed by the applicant bank^{is devoid} of^{ant cause} of action against the defendants and there^{is no cause} of action in the eye of the law. There would not^have been any cause to institute the^present application. It is further submitted that the applicant bank^has concealed material facts before the^{Hon'ble Tribunal} that the applicant bank used to^give huge OD^{facility to} the answering respondents from time to time^without any security to run their business and the^defendants were never in default on repayment.^{The branch} manager requested the defendans to^deposit handsome money with the bank to show^{huge deposit} in coming financial^year hence the answering respondents deposited a sum of Rs.2.25 lacs after selling his assets with the applicant^{bank howeverthe} branch manager cheated_[llefendants^{by adjusting}

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said amount with loan account of defendant no. 1. Thereafter the branch manager of applicant bank recalled and stopped fufther credit facility to defendants without any intimation hence financial problem arose in business of answering respondents. The defendants requested the applicant bank to help the defendant and grant him CC limit so that he can run his business smoothly, however the branch manager has not granted CC limit due to which the defendants could not run business due to shoftage of cash in hand for day-to-day affairs hence the entire business of respondents collapsed.

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The applicant bank and defendant nos.l & 2 have filed their respective evidence.

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Heard the Ld. Counsels of both the^parties and perused the record.

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The first contention of the defendants is that NPA has been wrongly declared. In this regard I have^gone through the statement ofaccount. From^perusalofthe statement of account it is clear that the contention of the defendants is against the evidence. The account has been declared NPA as per RBI^guidelines, therefore, the contention of the defendants has no force.

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The next contention of the defendants is that the applicant bank has obtained signatures on the blank proformas and therefore, the said paper cannot be relied upon. But the contention of the defendants has q,).

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no force. The defendants are well educated businessman, therefore, it cannot be^presumed that they have signed the^papers without^going through the conditions of the sanction letter. Further, the defendants have never filed any complaint before the competent forum in this regard.

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The next contention ofthe defendants^is that^the applicant bank has charged exorbitant^{rate of interest.} On the other hand, the Ld. counsel of^{the bank has} submitted that the interest^has been^{chargedas per} agreement between the^parties. In^{this regard I have} gone through the record. From^perusal of the statement of account it is clear that^{the applicant bank} is charging rate of interest as^{per agreement.} Therefore, it cannot be said that the^{applicant bank is} charging exorbitant rate of^interest.

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The next contention of the defendants^{is that the} OA has not been filed by the competent^personMr. Syed Mohammad Shabir Shah,^{BranchManager/Senior} Executive of the applicant bank,^{who is authorized to} veriff and file the^present OA. From^{perusal of the} record, it is clear that the officer of the^{bank has been} authorized by the bank to file the^{presentOA and} therefore, the contention ofthe defendants^{that the OA} has not been filed by authorized^{person has no force.}

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L2. The next contention of defendants^{is that the} defendants have requested^{the applicantbank for grant} of CC limit so that they can^run the^{businesssmoothly,} however the branch mana_g:er.has^{not granted CC limit} 9\

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due to which the defendants could not run business due to shortage of cash in hand for day-today affairs hence the entire business of defendants collapsed. On^perusal of the record it is clear that the defendants have failed to file any evidence in this regard. Therefore, there is no force in the contention of the defendants.

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The next contention of the defendants is that the applicant bank has not filed the complete statement of account as required as^per the rules. In this^regard I have^perused the record. On^perusal of the record, it^is clear that the applicant bank has filed the^complete statement of account. Therefore, there is no forceⁱⁿ the contention of the defendants.

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The next contention of the defendants in the written statement is that the OA has been filed without any cause of action. In this regard I have^{gone through} the record. From^perusal of the record, it is clear that the applicant bank has issued legal notice to the defendant to repay the amount due and the defendant has failed to repay the entire due amount and therefore, the cause of action to flle the OA has duly arise and therefore, the contention of the defendant has no force.

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From^perusal of the entire evidence, it is clear that the defendants have failed to^prove their case as claimed in the written statement. On the other^hand, the applicant bank has proved his case against the defendants and therefore,Jheqefendants are liable to (,\

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TANO.293 of 2024

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pay jointly and severally the amount claimed by the applicant bank and the OA of the applicant bank^is liable to be allowed.

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In the light of the above discussions, the^present TA deserves to be allowed.

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ORDER

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I hereby allow this T.A. of the Applicant Bank and direct the defendant nos.1 to defendant no.5^{(i), (ii)} & (iii) to pay jointly and severally to the applicant a sum of Rs.44,94,868.69 along with cost, expenses and interest @ 13.75o/o from the date of filing of this O.A. which has become T.A till the date of realization. However, the liability of LRs of deceased Sh. Gulam Nabi Gilkar/defendant no.5 is limited to the extent of propefi/assets inherited by them from deceased Sh. Gulam Nabi Gilkar. The defendant no.3 as LR of deceased Shri Gulam Nabi Gilkar is also liable to^pay to the applicant bank the amount to the extent of assets inherited by him from deceased ShriGulam NabiGilkar.

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In case of failure to deposit the above amount withln the stipulated period, the same shall be recovered from the sale of the hypothecated assets and the sale of mortgaged^properties i.e., (i). A^piece of Land measuring Two Kanals (2K) situated at Nagam, Chadoora, Budgam, Kashmir and as per the revenue records falling under khasra No.1917 min, Khewat No.310 and Khata No.1573 of Estate Nagam, Tehsil Chadoora and District Budgam, Kashmir. (ii). A piece of Land measuring Two Kanals (2K) situated at Nagam, Chadoora, Budgam, Kashmir and as per the revenue

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records falling under khasra No.1917^min, Khewat No.310 and Khata^No.1573 of^{Estate Nagam,} Tehsil Chadoora and District Budgam,^{Kashmir.(iii). A} piece of Land measuring Ten Marlas^(10M) situated at Devipora, Srinagar, Kashmir and as^{per the revenue} records falling under Khasra^{No.162l100min, Khewat} No.24 and Khata No.66 of Estate^{DeviporaTehsil} Srinagar^(North) and District^{Srinagar, Kashmir. In case} of short fall, the same^{shall be recovered from the sale} of personal movable and^{immovable assets of the} defendant nos.1 to defendant^{no.5 (i), (ii) & (iii).}

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Recovery Certiflcate be^{issuedforthwith andbe} sent to Recovery Officer,^{Debts Recovery Tribunal-Il,} Delhi.

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The registry of this Tribunal^{is herebydirected to} issue free copy of the order and^{send the same to both} the^parties.

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Parties are directed to appear^{before the Ld.} Recovery Officer, DRT-II, Delhi^{on L7.02.2026.Pending} IAs, if any, stand disposed of.

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File be consigned to records.

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Date : L7.t2.2025

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gJ, (SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been signed, dated^and pronounced in open court.

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Date: L7.L2.2025

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s) 1,.\ (susHrl KUMAR RASTOG) PRESIDING OFFICER DRT-II, Delhi

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Jammu and Kashmir Bank Limited v. Redress Consultants Pvt. Ltd.

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Jammu and Kashmir Bank Limited v. Redress Consultants Pvt. Ltd.

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