Allowed

Jammu and Kashmir Bank Limited v. M/S Dar Timber Co.

DRT23 Jan 2026OA/1541/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act for recovery of a dues of Rs. 2.51 crores. The court directed recovery via sale of mortgaged land and property, issued a recovery certificate, and scheduled an auction.

What did the court decide?

Recovery of Rs. 2,51,24,934/- plus interest; recovery via sale of mortgaged land and personal property; Recovery Certificate issued; appearance fixed for distribution of proceeds.

Jammu and Kashmir Bank Limited versus M/S Dar… — Contract and Commercial Disputes | 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: 1541 of 2024 Date of Institution: 21.09.2024 Date of Decision: 23.01.2026

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The Jammu & Kashmir Bank Ltd. having its branches all over India and a branch at Anchar Buchpora, Srinagar, Kashmir.

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……..Applicant

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Vs.

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M/s Dar Timber Co. Proprietorship Firm C/o Main Chowk, Buchpora, Srinagar, through its Prop. Sh. Abdul Sattar Dar.

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Mr. Abdul Sattar Dar S/o Haji Abdul Rehman Dar R/o Dar Mohalla, Buchpora Srinagar, Kashmir.

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Mt Gulam Mohammad Dar S/o Haji Abdul Rehman Dar R/o Dar Mohalla, Buchpora Srinagar, Kashmir.

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……….Defendants

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Advocates

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Ms. Harpreet Kaur, Counsel for the applicant bank. Defendants - ex parte .

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OA for the Recovery of Rs.2,51,24,934/- with interest @11.45% per annum with monthly rests from 21.09.2024.

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ORDER

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The Jammu & Kashmir Bank Ltd. (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.2,51,24,934/- with interest against M/s Dar Timber Co. and others (defendants).

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Bank’s case is that in 1999, it had granted a loan of Rs.3.70Lacs to defendant no.1 through its proprietor Defendant no.2 in the form of C.C Limit for business purpose. The limit was enhanced from time to time and lastly on 11.02.2020 for Rs.247.50Lacs. To secure the loan, Defendant no.3 had mortgaged his land (fully detailed in para No.3A of the application). The loan was chargeable to interest @11.45% per

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annum with monthly rests. The defendants had acknowledged the liability towards the debt on 07.01.2020 and 31.03.2023. On 31.08.2024, a sum of Rs.2,51,24,934/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 25.10.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 04.08.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Ashish Bhasin, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-41. 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 loan of Rs.247.50Lacs and on 31.08.2024, a sum of Rs.2,51,24,934/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.2,51,24,934/- (Rupees Two Crore Fifty One Lacs Twenty Four Thousand Nine Hundred and Thirty Four Only) i.e. Rs.2,50,66,934/- in the C.C. Limit with interest @11.45% per annum with monthly rests from 21.09.2024 and Rs.58,000/- towards additional costs and charges, 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 mortgaged land 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.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 25.02.2026, who is directed to distribute the sale proceeds of the mortgaged property(ies) and standing crops 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.

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Pronounced in the open Court. (A S Narang) Dated: 23.01.2026 Presiding Officer DRT-1, Chandigarh Amanpreet (Law Researcher)

Jammu and Kashmir Bank Limited v. M/S Dar Timber Co.

Case brief

What is this about?

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Jammu and Kashmir Bank Limited v. M/S Dar Timber Co.

Case brief

What is this about?

What did the court decide?

What the court decided

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