Allowed

Jammu and Kashmir Bank Limited v. M/S Alamdar Steel Fabrications

DRT14 Jan 2026OA/1455/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of RDB Act for recovery of a term loan and working capital amounting to Rs.22,17,312.93 p with interest from the borrower, guarantors, and legal heirs of a deceased borrower, granting decree-ness and recovery certificate.

What did the court decide?

Recovery of Rs.22,17,312.93 p with interest allowed; Recovery Certificate issued; Parties directed to appear before Recovery Officer for distribution of sale proceeds.

Jammu and Kashmir Bank Limited versus M/S Alamdar… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

OA No: 1455/2022 Date of Institution: 27.05.2022 Date of Decision: 14.01.2026

¶4

Jammu & Kashmir Bank Limited having its branches all over India and a branch at Handwara, Jammu & Kashmir.

¶5

……..Applicant

¶6

Vs.

¶7

M/s Alamdar Steel Fabrications, a sole proprietorship concern situated at Zachaldara, Handwara, Jammu and Kashmir, through its proprietor Sh. Mohammad Abdullah Mir (Gojar Chatwal) s/o Sh. Fazir Ali Mir (Gojar Chatwal).

¶8

Sh. Mohammad Abdullah Mir (Gojar Chatwal) s/o Sh. Fazir Ali Mir (Gojar Chatwal), r/o Wadder- Payeen Rajwar, Handwara, Jammu and Kashmir.

¶9

Sh. Fazir Ali Mir s/o Sh. Sabaz Ali Mir (Gojar Chatwal), since deceased and now represented by her legal heirs a) Mohammad Abdullah Mir s/o Fazir Ali (Son) (Also arrayed as defendant no.2).

¶10

b) Mohammad Ashraf Mir s/o Fazir Ali (Son) (Also arrayed as defendant no.4).

¶11

c) Ms. Zaitoon Begum d/o Fazir Ali d) Ms. Shakeela Begum d/o Fazir Ali e) Ms. Nazeera Begum d/o Fazir Ali f) Ms. Rubeena Begum d/o Fazir Ali g) Ms. Nageena Begum d/o Fazir Ali h) Ms. Gulshan Begum d/o Fazir Ali All r/o Wadder Payeen, Rajwar, Jammu and Kashmir

¶12

Sh. Mohammad Ashraf Mir (Chatwal) s/o Sh. Fazir Ali, r/o Wadder Payeen, Nagnal Rajwar, Handwara, Jammu and Kashmir.

¶13

Sh. Mohammad Shaban Dar s/o Sh. Wali Mohammad Dar, r/o Lach Mawer, Handwara, Jammu and Kashmir.

¶14

……….Defendants

¶15

Advocates Sh. Sumit Batra, Counsel for the applicant bank. Defendants - ex parte vide order dated 07.08.2024 .

¶16

¶17

OA for the Recovery of Rs.22,17,312.93p with interest from 27.05.2022.

¶18

ORDER

¶19

Jammu & Kashmir Bank Limited has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,17,312.93p with interest against M/s Alamdar Steel Fabrications and others (defendants).

¶20

Bank’s case is that on 19.03.2013, it had granted Term Loan of Rs.11.83Lacs and C.C. Limit (working capital) of Rs.7.17Lacs to defendant no.1 through its proprietor i.e. defendant no.2 in for Business purpose. To secure both the loans, Defendant Nos. 3 and 4 had mortgaged their properties and hypothecated assets (fully detailed in para No.3A of the application). Defendant No.4 and 5 stood as guarantors vide deed of guarantee dated 05.04.2013. Again on 28.02.2017, at the request of the defendants, bank restructured the existing limits and converted the overdues into a Converted Term Loan (CTL) of Rs.1,80,856/-. The loans were chargeable to different rates of interest. On 31.03.2022, a sum of Rs.22,17,312.93p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

¶21

On 06.09.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance.

¶22

3A. During the course of the proceedings, IA No.513 of 2023, was filed by the applicant bank along with amended cause title, was allowed vide order dated 30.05.2023. Thereafter, defendant Nos.1,2,4,5 and LRs of deceased defendant No.3 failed to appear before this Tribunal despite

¶23

¶24

serving the summons. Accordingly, vide order dated 07.08.2024, all the defendants were proceeded ex parte .

¶25

In order to prove its case, the Bank has placed on record the affidavit of Sh. Umesh Sharma, Senior Executive along with the loan and security documents and marked them as Exhibit A-1 to A- 20.

¶26

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 loans under various schemes and on 31.03.2022, a sum of Rs.22,17,312.93p was due.

¶27

Accordingly, the application of the bank for the recovery of Rs.22,17,312.93p (Rupees Twenty Two Lacs Seventeen Thousand Three Hundred Twelve and Paise Ninety Three Only) with interest @13.75% per annum with monthly rests from 27.05.2022, till the date of payment is hereby allowed with costs. The liability of legal heirs of defendant No.3 would be limited upto the extent of the property inherited by them from Sh. Fazir Ali (now deceased), whereas liability of defendant Nos.1,2,4 and 5 would be joint and several. Bank can recover its dues by the sale of mortgaged properties and hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendant Nos.1,2,4 and 5.

¶28

Pending IAs, if any, stand disposed of.

¶29

Recovery Certificate be issued accordingly.

¶30

¶31

Parties are directed to appear before Recovery Officer on 16.02.2026, who is directed to distribute the sale proceeds of the mortgaged property and hypothecated assets 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.

¶32

Pronounced in the open Court. (A S Narang) Dated: 14.01.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Jammu and Kashmir Bank Limited v. M/S Alamdar Steel Fabrications

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Bank Limited v. M/S Alamdar Steel Fabrications

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Mohamed Ali versus South Indian Bank

Pragathi Krishna Gramin Bank versus Bhanubi

Canara Bank versus Srikanth Ramappa Baloji

Union Bank of India versus M S Vardha Tea Pvt. Ltd. and Ors.

Saroj Rani versus Edelweiss Asset Reconstruction Company Limited

Union Bank of India versus Sh. Balkar Singh