Allowed

Jammu and Kashmir Bank Limited v. M/s Hilal Ahmad Posh

DRT21 Aug 2026OA/818/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal adjudicated a recovery application filed by Jammu and Kashmir Bank Limited against borrowers and guarantors. The court found the bank proved its case regarding an outstanding loan and liability of guarantors and heirs. The applicant's application for recovery was allowed.

What did the court decide?

Recovery of ₹79,91,963.74 with interest at 18% per annum; recovery certificate issued; disposal of business costs allowed.

Jammu and Kashmir Bank Limited versus M/s Hilal… — 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: 818/2025 Date of Institution: 26.05.2025 Date of Decision: 21.08.2026

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

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……..Applicant

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Vs.

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M/s Hilal Ahmad Posh, Office at Malapora, Rainawari, Srinagar, Jammu and Kashmir.

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Hilal Ahmad Posh (aka Hilal Ahmed Posh) s/o Khazir Mohammad Posh, r/o Malapora, Rainawari, Srinagar, Jammu and Kashmir

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also at: Keni Mohalla, Dalkowpora, Jammu and Kashmir.

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Aijaz Ahmad Khan (aka Aijaz Ahmed Khan) s/o Abdul Majid Khan, r/o H.No. 134, Jawahar Nagar, Opposite DAV School, Srinagar, Jammu and Kashmir.

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Farooq Ahmad Haroon (aka Farooq Ahmed Haroon) (Guarantor) s/o Khazir Mohammad Haroon, r/o Malapora, Rainawari, Srinagar, Jammu and Kashmir - 190003 Through its legal heirs

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4.1 Abdul Rashid Haroon s/o Khazir Mohammad Haroon, r/o Baba Pora,

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Near Masjid Moula Ali Habba Kadal, Srinagar, Jammu and Kashmir.

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4.2 Mumtaz Ahmad Haroon s/o Khazir Mohammad Haroon, r/o Devi

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Angan Hawal, Srinagar, Jammu and Kashmir.

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4.3 Farid Ahmad Haroon s/o Khazir Mohammad Haroon, r/o Near

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Guduwara Mehjoor Nagar, Srinagar, Jammu and Kashmir.

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Ayaz Mohammad Shayir s/o Mohammad Abdullah Shayir, r/o Dalkoawpora, Rainawari, Srinagar, Jammu and Kashmir

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……….Defendants

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Advocates

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Mr. Anup Prajapati proxy counsel for Mr. Mayank Mathur along with Sh. Sunpreet Singh Bali, Banking Official and Sh. Kishore Kumar Attri, Nodal Officer of the applicant bank.

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Defendants- ex parte vide order dated 06.07.2026 .

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OA for the Recovery of ₹79,91,963.74p with interest @18% per annum with monthly rests from 26.05.2025.

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ORDER

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Jammu and 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 ₹79,91,963.74p with interest against M/s Hilal Ahmad Posh and others (defendants).

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Bank’s case is that on 23.08.1999, it had granted a loan of ₹1.00 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 in the form of C.C Limit for Business purpose. To secure the loan, Defendant No.2 being the proprietor of defendant No.1 had hypothecated assets (fully detailed in para No.3A of the application). Defendant Nos.3 and 4 (defendant no.4, since deceased now being survived through his legal heirs) stood as guarantor for the C.C. Limit of ₹1.00 Lacs vide Deed of Guarantee dated 16.08.1999. The C.C. Limit was enhanced from time to time and lastly on 03.08.2004, at ₹5.00 Lacs. To secure the enhanced limit, Defendant No.2 being the proprietor of defendant No.1 had hypothecated assets (fully detailed in para No.3A of the application). Defendant Nos.3 to 5 stood as guarantors for the enhanced limit s vide Deed of Guarantee dated 09.08.2004. The loan was chargeable to interest @18% per annum with monthly rests. The Account of the defendants was declared Non-Performing Assets on 31.12.2007. The defendants had acknowledged their liability towards the debt by executing D.P. Notes on 16.08.2010, 15.08.2016 and 09.07.2021. Defendants had duly acknowledged their liability towards the debt on by executing Letters of Acknowledgement of Debt 25.06.2019 and 02.04.2023. The Bank sought exclusion of the time from 15.03.2020 to 28.02.2022 vide order dated 10.01.2022 of the Supreme Court in “Re: Cognizance for extension of limitation” (Suo Moto Writ Petition (C) no.3 of 2020). Further, as per the Jammu & Kashmir Limitation Act, 1938, the limitation was for a period of 6 years to file a suit for Recovery. On 31.03.2025, a sum of

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₹79,91,963.74p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 09.06.2025, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 06.07.2026, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Ricky Mahajan, Law Manager along with the loan and security documents and marked them as Exhibit A-1 to A-26. 5. I have perused the evidence on the record. Sh. Sunpreet Singh Bali, Banking Official and Sh. Kishore Kumar Attri, Nodal Officer of the Applicant Bank are present along with the original documents which have been perused by me. The same have been returned to them after perusal. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹5.00 Lacs and on 31.03.2025, a sum of ₹79,91,963.74p was due. 6. Accordingly, the application of the bank for the recovery of ₹79,91,963.74p (Rupees Seventy Nine Lacs Ninety One Thousand Nine Hundred Sixty Three and Paise Seventy Four Only) with interest @18% per annum with monthly rests from 26.05.2025, till the date of payment is hereby allowed with costs. The liability of the legal heirs of defendant No.4 would be limited to clear the outstanding amount upto the extent of the property(ies) inherited by them from Mr. Farooq Ahmad Haroon (now deceased), whereas the liability of defendant nos.1, 2, 3 and 5 would be joint and several. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application as well as from the personal/inherited movable and immovable property(ies) of the defendants accordingly.

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7.	Pending IAs, if any, stand disposed of.
8.	Recovery Certificate be issued accordingly.
9.	Parties are directed to appear before	Recovery Officer on
24.09	.2026.
10.	A Copy of this order along with Recovery	Certificate be sent to
the R	ecovery Officer as well as the parties.
Pron Dated MANOJ KAL	ounced in the open Court. : 21.08.2026 RA	(A S Narang) Presiding Officer DRT-1, Chandigarh

Jammu and Kashmir Bank Limited v. M/s Hilal Ahmad Posh

Case brief

What is this about?

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Jammu and Kashmir Bank Limited v. M/s Hilal Ahmad Posh

Case brief

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What did the court decide?

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