Allowed

Jammu and Kashmir Bank Limited v. M/S Ghulam Nabi Khan and Sons

DRT25 Aug 2026OA/1433/2024

Case brief

AI extract

What is this about?

Drug manufacturing company sought confirmation of its export license despite pending inquiries. The bank proved its loan advance, acknowledgements, and outstanding dues. The tribunal allowed the recovery application against the sole proprietorship, proprietor, and guarantors, directing issuance of a Recovery Certificate. Defendants did not appear.

What did the court decide?

Recovery of Rs.22,28,565.79 with interest @18% p.a. from 21.05.2024; Recovery Certificate issued; Joint and several liability enforced.

Jammu and Kashmir Bank Limited versus M/S Ghulam Nabi Khan and… — Banking and Recovery | DRT (2026)

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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: 1433/2024 Date of Institution: 21.05.2024 Date of Decision: 25.08.2026

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Jammu and Kashmir Bank Limited, branch situated at Main Bazar Sopore, Jammu and Kashmir-193201.

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…Applicant

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Vs.

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M/s Ghulam Nabi Khan & Sons (Sole Proprietorship Firm), Office residing at Gole Market Chowk, Sopore, Baramulla, Jammu and Kashmir – 193201.

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Mr. Ghulam Nabi Khan (Sole Proprietor), S/o Haji Abdul Rahim Khan, R/o Baba Yousuf Sopore, Baramulla, Jammu and Kashmir - 193201.

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Mr. Akhter Hussian Khan, S/o Ghulam Nabi Khan, R/o Baba Yousuf Sopore, Baramulla, Jammu and Kashmir -193201.

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Mr. Muzaffar Ahmad Khan, S/o Abdul Rahim Khan R/o Sir Syed Abad Sopore, Baramulla, Jammu and Kashmir -193201. …Defendants Advocates Sh. Gaurav Thakur, Counsel for the Applicant Bank. Defendants – ex parte .

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OA for the Recovery of Rs.22,28,565.79p with interest @18% per annum with monthly rests from 21.05.2024.

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ORDER

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On 21.05.2024, Jammu and Kashmir Bank Limited filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,28,565.79p with interest against M/s Ghulam Nabi Khan & Sons and others (defendants). 2. Defendant No. 1 is a Sole Proprietorship firm, defendant No.2 is its Sole Proprietor and defendant Nos.3 & 4 stood as the Guarantors. Bank’s case is that on 14.02.2008, it had granted a Cash Credit Facility

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of Rs.4 lacs to defendant No.1, through its proprietor, for business purpose. The Loan facility was enhanced and renewed from time to time and lastly enhanced on 06.01.2018 at Rs.13.20 Lacs. On 22.02.2017, Bank had granted a W.C.T.L. of Rs.2.38Lacs and W.C.D.L. of Rs.2.20Lacs. To secure the limits, defendant No.1, through its proprietor, had hypothecated assets (fully detailed in para No.5.23 of the application). Defendant Nos.3 and 4 stood as Guarantors for the above limits vide Deed of Guarantee dated 16.04.2014. The Cash Credit facility was chargeable to interest @12.40% per annum with monthly rests and W.C.T.L. was chargeable to interest @9.50% per annum with monthly rests. The defendants had acknowledged their liability towards the debt on 02.01.2018, 11.01.2019, 04.07.2019, 22.02.2020, 31.03.2022 and 23.06.2023. On 30.04.2024, a sum of Rs.22,28,565.79p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 10.10.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 27.01.2026, 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, Law Officer, along with the loan and security documents. 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 a Cash Credit Facility of Rs.4 lacs; a WCTL of Rs.2.38 lacs and a WCDL of Rs.2.20 lacs and on 30.04.2024, a sum of Rs.22,28,565.79p (Rs.21,12,.684.79p IN C.C. Limit; Rs.1,15,881/- in W.C.T.L.) was due.

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Accordingly, the application of the Bank for the recovery of Rs.22,28,565.79p (Rupees Twenty-Two Lacs Twenty-Eight Thousand Five Hundred Sixty-Five and Paise Seventy-Nine Only) with interest @18% per annum with monthly rests from 21.05.2024, 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 (fully detailed in para No.5.23 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.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 28.09.2026 .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open court. (A S Narang) Dated: 25.08.2026 Presiding Officer DRT-1, Chandigarh HARSH

Jammu and Kashmir Bank Limited v. M/S Ghulam Nabi Khan and Sons

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Jammu and Kashmir Bank Limited v. M/S Ghulam Nabi Khan and Sons

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