Allowed

Jammu and Kashmir Bank Limited v. Gowhar Ahmad Sheikh

DRT15 Sept 2026OA/520/2024

Case brief

AI extract

What is this about?

A bank established that it had advanced a term loan, with guarantors and mortgaged properties securing the facility, and that the loan remained unpaid. The Debt Recovery Tribunal allowed recovery of the outstanding principal and contractual interest, with joint and several liability and authority to proceed against both the mortgaged properties and defendants' other assets.

What did the court decide?

Recovery of Rs.38,71,365 with interest at 18% per annum and monthly rests from 31.01.2024 until payment, jointly and severally from all defendants, including through sale of the mortgaged properties and attachment of their other movable and immovable properties; recovery certificate directed to issue.

Jammu and Kashmir Bank Limited versus Gowhar Ahmad Sheikh — 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: 520/2024 Date of Institution: 31.01.2024 Date of Decision: 15.09.2026

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Jammu and Kashmir Bank Limited, branch situated at Upper Sathoo, Srinagar, Jammu and Kashmir.

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…Applicant

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Vs.

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Mr. Gowhar Ahmad Sheikh S/o Mr. Late Nazir Ahmad Sheikh R/o Rawalpora, Wanabal, Srinagar, Jammu & Kashmir.

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Mr. Sabiya Gowhar W/o Gowhar Ahmad Sheikh R/o Rawalpora, Wanabal, Srinagar, Jammu & Kashmir.

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Mrs. Farida Akhtar D/o Late Ghulam Mohammad Shah R/o Sanat Nagar, Budshah Colony, Srinagar, Jammu & Kashmir.

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Mr. Hilal Ahmad Dar S/o Ghulam Mohammad Dar R/o Loswani, Pulwama, Jammu and Kashmir.

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Mr. Muzaffar Ahmad Sheikh S/o Mr Late Nazir Ahmad Sheikh R/o Rawalpora, Wanabal, Srinagar, Jammu & Kashmir.

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…Defendants

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Advocates

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Sh. Ankit Kaushal, proxy Counsel for Sh. Mayank Mathur, Counsel for the Applicant Bank. Defendants – ex parte .

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OA for the Recovery of Rs.38,71,365/- with interest @18% per annum with monthly rests from 31.01.2024. ORDER

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On 31.01.2024, 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.38,71,365/- with interest against Sh. Gowhar Ahmad Sheikh and others (defendants).

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Defendant Nos.1 and 2 are the borrowers; defendant Nos.3 and 4 are the guarantors and defendant No.5 is the mortgagor. Bank’s case is

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that on 24.06.2021, it had granted a Term Loan facility under JK Bank's LAP Scheme of Rs.34 lacs to defendant Nos.1 and 2 for business purpose. To secure the limit, defendant Nos.1 and 5 had mortgaged their properties (fully detailed in para No.5.7 of the application). Defendant Nos.3 and 4 stood as Guarantors for the above facility vide Guarantee Deed dated 30.06.2021. The loan was chargeable to interest @18% per annum with monthly rests. On 31.12.2023, a sum of Rs.38,71,365/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 18.04.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 18.05.2026, 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 term loan of Rs.34 lacs and on 31.12.2023, a sum of Rs.38,71,365/- was due. 6. Accordingly, the application of the Bank for the recovery of Rs.38,71,365/- (Rupees Thirty-Eight Lacs Seventy-One Thousand Three Hundred and Sixty-Five Only) with interest @18% per annum with monthly rests from 31.01.2024, 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 mortgaged properties (fully detailed in para No.5.7 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. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 16.10.2026 . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 15.09.2026 Presiding Officer DRT-1, Chandigarh HARSH

Jammu and Kashmir Bank Limited v. Gowhar Ahmad Sheikh

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Bank Limited v. Gowhar Ahmad Sheikh

Case brief

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What did the court decide?

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