Allowed

Jammu and Kashmir Bank Limited v. M/S Shakeel Enterprises

DRT26 Dec 2025TA/452/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal adjudicated an application by J&K Bank for recovery of Rs.44,65,104/- and interest against seven respondents. The Tribunal examined claims of forged drafts and fabricated documents, rejecting the respondents' defenses. The application was allowed, and a recovery certificate was directed to be issued.

What did the court decide?

Directed respondent Nos. 1 to 7 to pay Rs.44,65,104/- along with interest and costs within 30 days; liability of deceased's LRs limited to inherited assets; issued Recovery Certificate.

Jammu and Kashmir Bank Limited versus M/S Shakeel Enterprises — 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'452^OF2022

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THE JAMMU^{& KASHMIRBANK I(TD VS }US. SHAKEEL} ENTERPRISES^{& ORS}

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Reserued on t 28.11,'2025 Pronounced^on =^26.12'2025

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The lammu^{& Kashmir Bank Ltd}

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-Applicant bank

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Vs.

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M/s Shakeel^EnterPrises

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ShakeelAhmad^Shah

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Mrs.^SabiYaZahoor

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Ghulam^{Nabi Shah}

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Dead through^{its LR's}

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Mrs. Tanveera

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Daughter^{of defendant no'4}

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Mr.^{M. Rafiq}

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Son of^{Defendantno'4'}

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Mr.^{ShakeelAhmad Shah}

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Son of^{Defendantno'4'}

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Mrs.^Amina

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Defendants

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Wife of^{Defendantno'4'}

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Sh. GM^{Kawoosa, CounselaPPearg fo1} ]ooriJ.",^{6.nk *itn Shri Aftab Ahmed} cjfhc"t for^{applicantbank'} ii.l-oi-n.j^{defendant no'4 are expafte} since, 25.07.2025.

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Present:

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None for^{other defendants'}

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FINAL^ORDER

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I t I t t Il t I i I I 1

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This original^{application has been filed by the} applicant^{bank, on 30'03'2007 through Shri Abdul} Hamid^{Banday, AssistantGeneral Managerof the} appticant^{bank, under Section 19 of the RDB Act' 1993} against^{the defendantsfor recoveryof a sum of} Rs.44,65,1041-^{together with cost' chargesand}

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pendentellite and^{future interest@17olo from date} of filing^{of this O.A. till the realization in fult'}

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The^{brief facts of the caseare that at the request} of the defendant^{no. 2, being sole proprietorof} defendant^{no.l, the applicant bank sanctioned' a Cash} Credit^{Facility of Rs.1.00 lac against hypothecation of} stocks &^{registered mortgage of land measuring 2} kanals &^{16 marlassituatedat SuttooKattar Bagh'} Tehsil Chadoora,^{District Budgam, Kashmir standing in} the name^{of defendant nos'2 & 3' In order to avail the} saiO loan^{facility, the defendant no'l through} defendant^{no.2 being sole proprietor have executed} loaning^{documentsdated 20'07' lgg4, 02'07 '1994 and} 01.07.1994^{in favour of the applicantbank & also} executed^{registered mortgage along with defendant} no.3. Again,^{at the request of the defendant no'l} through^{defendant no'2 the aforesaidcredit facility was} enhanced^{time to time and lastly was enhancedon} 20.09.1999^{of Rs. 5'70lacs by the applicantbank' The} defendant^{no.4 offered his personal guarantee&} executed^{deed of guarantee dated 12'09'1999' The} defendant^{no.1 through defendant no'2executedall} necessry^{loaning documents dated 11'10'1999'} 24.09.1999^{and 12.09'1999' The defendant nos'2& 3} requested^{the applicantto cover the facility granted to} defendant^{no.1 by the registeredmotgage of the} aforesaid^{property. It is submiftedthat during the} pendency of^{the O.A, the defendantno'4/ Ghulam Nabi} Shah^{was died and the LRs of deceased defendant} no.4/^{Ghulam Nabi Shahwere impleaded in the present}

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It is further submitted^thatthe defendants^{enjoyedand utilized the Loan facility'but} failed to maintain^{the financial disciplineand failedto} repay the due^{amounts.The applicant bank requested} the defendants^{to regularize the loan account by visits} and letters,^{but there was no response from the} defendants.^{Thus,the present O'A'ff'A is preferred by} the applicant^{bank to recover its dues'}

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On^{notice by this Tribunal, defendant nos' 1 to 4} put appearance^{throughcounsel'The defendantnos'1} to 3 have^{filed written statement and evidence'}

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In^{the written statement the defendant nos' 1 to} 3 have^{submifted that the defendants have not availed} any loan^{to the extent of Rs'44,65'104/- for the} recovery^{of which the applicanthas filed the instantOA'} It is submifted^{that the defendant has only availed the} cash credit^{facility vide A/c No' 66 to the sanctioned} limit of^{Rs'5,70,000/-given by the applicant bank} against^{the co-lateral security of land situatedat Suitho} Katherbagh,^{Tehsil Chadora,District Badgham'} Kashmir^{for which the defendant nos' 1 & 2 signed} necessary^{demandpromissorynote which are lying} with the^{applicantbank' The defendantsnos' 1 & 2} against^{the said demand note of Rs'5'70'000/- have} never denied^{to makethe payment'In view of this the} instant OA^{is liable to dismissedas the matterinvolved} in the case^{is pendingvide civil suit filed by the} answering^{defendantsvide suit no' 11U2004in the} district couft^{of Delhi and againstthe interim order of} which the^{applicant bankhas gone beforethe Hon'ble} High Court^{of Delhi vide Civil RevisionNo' 59/2006 on}

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the issue^{of jurisdiction. It is fufthersubmitted that} hat during^{the course of its businessdealing'the} defendant^{nos. 1 & 2 came across a foreign buyer on} 18.02.2004^{through internetnamelyM/s' ATARO-FAN} s.v., 32,^{SOKOPAROCOTONOU, REPUBUQUEDU} BENIN, who^{placedthe ordersfor purchase of shawls'} As the buyer^{was new, the defendant no' 2 in order to} safeguard^{the payment,put the conditionof advance} payment subject^{to which the goods were to be} exported.^{The acceptance of the condition of advance} payment by the^{foreignbuyer,the defendantnos' 1 &} 2 received^{the foreigndemand draft bearing No'} 030759 dated^{02'02.2004 drawnon Saudi American} Bank, Saudi^{Arabiaaffiliated to Arab American Bank &} Trust NA^{575 LEINGTON AVENUE' NE/ YORK'} NY10046^{U.S.A. for US $ 56,400/-equivalent to Indian} currency^{as Rs.25,47,024/- which was depositedby the} defendant^{nos' 1 & 2 on 2L'02'2004 with the applicant} bank, against^{the above, the applicant bank gave the} necessry^{credit on 8'3'2004 by asum of} Rs.25,47,0241-^{in the said cash credit accountNo' CC-} 66 consequent^{to which the defendantnos' 1 & 2} exported^{the goods on 16'3'2004' The consignmentof} the exported^{goods was releasedby the foreignbuyer} on 22.3.2004^{but surprisingly,on 5'4'2004 i'e'' after a} gap of 44 daysfrom^{the date of depositingthe demand} draft and^{after a gap of 27 daysfromthe date of receipt} of credit,^{the applicantbank informed the defendant} nos. 1 &^{2 that the draft deposited by the defendant} nos. 1 &^{2 was invalid as declared by the ABN Amro} Bank, New^{York. It is submittedthat the appticant bank} debited^{the sum of Rs'26,27,244/- on 21'05'2004to} the above^{cash credit accountof the answering}

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€A

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defendant^{no. 1. The said amount of Rs'26'27'2441'} was comprising^{of Rs.25,94,400/- as the value of} demand draft^{of US$ 56400/- and the interest amount} of Rs.32,8214/- @^{60lo for 77 days' The abovesaid} amount,^{the defendant nos' 1 & 2 raisedobjection and} flledthesuitformandatoryandpermanentinjunction against^{the applicantbefore the District Court' Tis} Hazari,Delhiwhich^{is pending disposalvide suit no' 111} of 2004.^{The applicantbank subsequentto the} completion^{of pleadings and framingof the issues} before^{the Trial Cout, on dated 22'03'2005 movedan} application^{under Order 7 Rule 11(d) of CPC for} rejection^{of the plaint by takingthe plea that the suit} filed by^{the plaintiff is barredby section 34 of the} Securitization^{& Reconstructionof FinancialAssets &} Enforcement^{Of Security Interest Act' 2002 which was} dismissed^{by the Ld' Trial Court vide its order dated'} 02.01.2006^{on the groundthat the two transactions'} one for^{cash credit account and the other for credit of} invalid^{demand draft issuedby the foreign buyer are} two independent^{transactions and therefore'the} general lien u/s^{t7L of the Indian @ntractAct cannot} be applied^{as the bank cannotdebit the cash credit} account^{of the plaintiff on defaultof plaintiff in any} other^{transactions, which as per plaintiff occurred due} to default^{on the part of the bank as it was the bank} who was^{to veriff the genuinity of the draft as the} plaintiff acted^{only on the bank'sassurance that} payment has^{been receivedby way of draft of foreign} bank,^{otherwise the plaintiff would not have exported} the^{goods.The Ld' TrialCourt in its orderfurtherstated} that the^{suit of the plaintiff (AD) cannot be rejected as} the suit^{discloseda valid cause of action and thereis} E)

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no bar on^{the jurisdiction of the civil court to try the} suit, against^{the abovesaidorder passed by the Ld'} Trial Court,^{the applicant bank approached the Hon'ble} Delhi High^{Couft vide Civil Revision No' 59/2006'which} is^{pendingdisposaland fixed for 7'4'2008for further} proceedings.^{The instant OA under replyis liable to be} dismissed^{in as much as the applicant bank is guilty of} gross negligence^{when it gave wrong credit on} 8.3.2004^{againstthe allegedinvalid demand draft of US} $^{56,400/-after a gap of 15 days from the date of} deposit,^{againstwhich the defendantnos' 1 & 2 were} under obligation^{to expoft the goods to the foreign} buyer^{who was the first timer and not the regular} buyer.^{It is further submitted that the instant O'A' has} neitherbeensigned,veriflednorinstitutedbyduly authorized^{and/or competent personnel'The atleged} authorization^{of Sh' Abdul Hamid Banday by virtue of} alleged^{power of attorney is not a valid piece of} document^{because on perusal of the power of attorney'} it is^{quiteclear that the nameof the executants nos' 1} & 2 is^{not mentionedon the power of attorneyand} besides^{this, no board resolution authorizingSh' AMul} Hamid^{Banday, AGM has ever been placed on record'} It is submitted^{that the applicant bank is a banking} company^{and only a person authorized vide board} resolution^{of the board of directors of the applicant} having^{power of attorney in his favour can only be said} tobecompetenttoinstitutetheoriginalapplication. Since^{no documents in this regard has been appended} along^{with the OA or the same being pleaded in the} OA, the^{instantOA is liable to be dismissed on this} ground alone.^{The OA is based on false' fabricated and} manutactured^{document'It is submitted that no cause}

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of action^{arises upon such documents'}

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documents^{on whichthe applicant bank is relyingupon'} being fabricated,^{manufactured and in any event full of} interpolations^{and grossmaterial alternationsand} particularly the^{subsequentfilling up of the words'} figures and^{amountsin hand writing or otherwise after} the signatures^{were got appendedcould not be allowed} to be received^{as evidence'The documentspurporting} to be the^{statementof accountsare also wrong' The} documents^{purporting to be the statements of accounts} allegedly^{recording the allegedtransactions sought to} be relied^{upon by the applicant bank haveclearly not} been maintained^{in the ordinary course of banking} business.^{nor the complete statementof accounthas} been filed^{with the O.A' In any event' each and every} alleged^{transactionreflected in the purported} statements^{of accountsbe it any debit or credit entry} of whatsoever^{nature is specifically deniedand} vehemently^{disputed, inter alia being false' fabricated'} doctored^{and grossly wrong' The portionsof the} documents^{filed by the bank and sought to be relied} upon it^{purporting to reflect the allegedtransactions} and each^{and every entrymadetherein are specifically} denied^{and disputed' Each and every entry of all} subsequent^{pages of the documents purportingto be} the atleged^{statementof accounts is vehemently} disputed^{and vehementlydenied individuallyand} specifically'^{As aforesaidthe applicantbank is also} guilty of breach^{of trust and total misrepresentation'} The bank^{officials had got a series of papers'unfilled} printed^{proformas, blankletterheadssigned in blank} by exercising^{misrepresentation' commercialduress} and^{coercionsand without evengiving an oppoftunity}

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to read or^{understand the nature and contentsof the} said^{papersgot signed in blanlVunfilled and undated'} In fact, the^{bankofficialsgot various such papers} signed at the^{time of opening the account under the} pretext that copies^{are required to be sent to the} various offices^{of the Bank' All documentsfiled and} relied upon^{by the bank cannot be allowed to be} received^{in evidence and are vitiated' It is further} submitted^{that the bank has filled and dated the} documents^{subsequently and apparently at the time of} the institution^{of the suit to suit its convenience'As} aforesaid,^{it is apparentthat the hand writtenportions} pertaining to^{the entriesof words,figures and datesin} particular, have^{been interpolatedby the hands of the} officers^{of the bank behindthe bacK of the defendants} and obviously^{at the time of institution of the instant} Original^{Application' As aforesaid' gross fraud and} gross material^{alterationsas in the instant case cannot} give rise to^{any alleged causeof action' It is further} submitted^{that the application is not maintainable in as} much as^{the same has been filed by the applicant bank} for specific^{performance of contractand the claimof} the applicant^{bank includes liquidated damages for} whichthisHon'bleTribunalhasnojurisdiction.Assuch the application^{deservesto be dismissedwith costs'}

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6.^{The applicant bank and the defendant nos'1 to 3} have filed^{their respective evidence'}

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Heard^{the Ld. Counsel of the appticant bank and} perused the^record.

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The^{main contention of the defendants is that} the defendant^{has taken a cash credit facilityvide} account no.^{66 of Rs.5,70,000/-against which the} collateral^{security of land situated atSuitho} Katherbagh,^{Tehsil Chadora,Distt. Badgham,Kashmir} was mortgaged.^{It is further submittedthat during the} course of^{business the defendantcame across a foreign} buyer who^{was ready to purchase the shawls from} defendant^{no.2. As the buyer was no known to} defendant^{no.l, so he has insisted the buyer to give} advance^{payment so that the shawls may be supplied'} The foreign^{buyermadeadvance paymentthrough DD} no. 030759^{dt. 02.02'2004drawn on Saudi American} Bank which^{was deposited with the applicant bank and} the applicant^{bank has made a credit of Rs'25'47} '0241in the accounts^{of the defendant' The defendant then} supptied^{the shawlsto the foreign buyer'The applicant} after a^{gap of 44 days on 05'04'2004 informed the} defendants^{that the draft deposited by the defendant} was invalid^{as declaredby ABN Amro Bank' New York} and debited^{the account ofdefendantfor} Rs.26,27,24l-.^{Therefore,it is submitted that the act} of the applicant^{bank is totally against the banking} norms.^{Whenthe defendants have depositedthe draft} jssued by the foreign buyer,^{it was the duty of the bank} to check^{the genuinenessof the draft' The applicant} bank^{has credited the amountof demand draft in the} account^{of defendant no'1 & 2 and then after expiryof} 44 days informed^{that bank draft is forged'In such} circumstances,^{the defendant no'l & 2 are not liable to} pay any amount^{to the applicant bank' On the other} hand the^{Ld. Counsel for applicant bank has submitted} that the^{defendantshave pkelCC limit and they have} c.\

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deposited^{the draft whichwas later on found to be} forged and^{therefore, the applicant bank has debited} the amount^{along with interestfrom the account of the} defendants.^{It is submittedthat the applicant bankis} not liable for^{the forgeryof the demanddraft and the} defendants^{have to pay the amount' From perusalof} the evidence^{it is clearthat the demand draft against} which the^{amountwas credited by the bank has been} found to^{be forged, therefore,the defendantno'1 & 2} are liable^{to reveltback the amount to the applicant} bank. Therefore,^{the action of the applicant bank} cannot be^{said to be invalidby debitingthe amount'} Therefore,^{the contention of the defendants has no} force and^{on this groundthe defendantscannot be} exonerated^from PaYing^{the dues'}

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The^{next contention of the defendantsis that the} OA has^{not been filedby the competent person whois} authorized^{to verify and file the presentOA' From} perusal of the^{record it is clearthat the officer of the} bank has^{been authorizedby the bank to file the} present OA^{and therefore, the contentionof the} defendants^{that the OA has not been filed by authorized} person has^{no force.}

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The^{next contentionof the defendants in the} written statement^{is that the documenton which the} applicant^{bank is relying upon are fabricatedand} manufactured^{documents' It is submittedthat the} documents^{have been subsequentlyRlled up'} Therefore,^{all the facts of the OA are based on forged} and fabricated^{documents and in such circumstances} 6I

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the oA is^{liable to be dismissed. Butthe} contention^{of the defendant cannotbe relied upon' The} defendants are^{well educated personand runninga} business and^{therefore, it cannot be deemedthat they} will signed the^{documents without going through the} documents^{and signed the documentswhich have} blanks that^{may be filled subsequently'There is no} evidence on^{behalf of the defendantsthat the} documents^{have been subsequentlyfilled by the bank'} Therefore, the^{contentionof the defendant has no} force.

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The next^{contention of defendants is that the} statement of^{account is against facts of the case' In} this regard I^{have gone throughthe statement of} account.^{There appears no discrepancy in the} statement^{of account'Therefore, the contention of the} defendant^{is vague and cannot be relied upon'}

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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 provedhis case against the} defendants^{and therefore,the defendantsare liable to} pay^jointty and^{severally the amount claimed by the} applicant^{bank and the OAfl.Aof the applicant bank is} liable to^{be allowed.}

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In the light^{of the above discussions, the present TA} deserues^{to be allowed.}

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ORDER

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I hereby^{allow this T.A. of the ApplicantBank and} direct the^{defendant nos. 1 to 7 to pay jointly and} severally to^{the applicant bank within 30 days from} today, a^{sum of Rs'44,65,104/-along with cost'} expenses^{and interest @ 13.77o/ofrom the date of filing} of this O.A.^{which has become T'A till the date of} realization.^{However,the liability of defendantno'4 to} 7 as LRs of^{deceased Sh' Ghulam Nabi Shah is limited} to the extent^{of property/assetsinherited by them from} deceased^{Sh. Ghulam Nabi Shah' The defendant no'2} as LR of^{deceased Sh. Ghulam Nabi Shah is also liable} to^pay to^{the applicant bank the amount to the extent} of assets^{inheritedby him from deceased Sh' Ghulam} Nabi Shah.

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In^{case of failure to deposit the above amount} within the^{stipulated period, the same shall be} recovered^{from the sale of hypothecatedassets and the} sale of^{moltgage property bearing land measuring2} kanals &^{16 marlassituatedat SuttooKattar Bagh'} Tehsil Chadoora,^{District Budgam,Kashmir' In case of} shortfall,^{the same shall be recovered from the sale of} personal., movable^{and immovableassets of the} defendant^{nos. 1to 7'}

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

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The^{registryof this Tribunal is hereby directed to} issue free^{copy oftheorder and send the same to both} the^pafties.

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Parties^{are directd to appear before the Ld'} Recovery Officer,^{DRT-II, Delhion 26'02'2025'Pending} IAs, if any,^{standdisPosed of.}

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File be consigned^{to records.}

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(susHIL KUIiAR^RASTOGI) PRESIDING^OFFICER DRT-II, Delhi

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Date : 26.12.2025

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signed, dated^and

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This^{judgement has been}

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pronounced in oPen^court.

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Dale :26.L2.2025

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(susHl L KU M-AR nnstoct) PRESIDING^OFFICER DRT-II,^Delhi

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Jammu and Kashmir Bank Limited v. M/S Shakeel Enterprises

Case brief

What is this about?

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Jammu and Kashmir Bank Limited v. M/S Shakeel Enterprises

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