Allowed

Jammu and Kashmir Development Finance Corporation Limited v. New Gash Enterprises

DRT12 Jun 2026TA/128/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant Corporation's application for recovery of ₹64,32,195 including interest against the defaulting borrowers and the proprietor-guarantor. The court directed the issuance of a Recovery Certificate and appearance before a Recovery Officer for asset distribution.

What did the court decide?

Recovery of ₹64,32,195 with interest at 10.75% per annum allowed. Recovery Certificate issued. Defendant's property subject to sale under Section 19(20-AB).

Jammu and Kashmir Development Finance Corporation Limited… — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

TA No: 128/2023 Date of Institution: 19.02.2022 Date of Decision: 12.06.2026

¶4

Jammu and Kashmir Development Finance Corporation Limited at Ground Floor, Jawahar Lal Nehru Udyog Bhawan, Jammu and Corporate Office at Ground Floor, Sanat Ghar, Bemina, Srinagar.

¶5

……. Applicant

¶6

Vs.

¶7

New Gash Enterprises Ichgam Budgam Kashmir.

¶8

Ghulam Hussain rather s/o Ghulam Rasool Rather, r/o Ichgam Budgam Kashmir

¶9

………. Defendants

¶10

Advocates

¶11

Sh. Abhijeet Taneja proxy counsel for Sh. Agam Bansal, Counsel for the applicant Corporation.

¶12

Ms. Riya Mailk proxy counsel for Sh. Abdul Sattar, Counsel for the Defendants.

¶13

TA for the Recovery of ₹64,32,195/- with interest @10.75% per annum with monthly rests from 19.02.2022.

¶14

ORDER

¶15

On 19.02.2022, Jammu and Kashmir Development Finance Corporation Limited, filed the suit for the recovery of ₹64,32,195/- with interest against New Gash Enterprises and another (defendants) in the Civil Court Srinagar. However, vide order dated 18.01.2023, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.

¶16

Corporation’s case is that on 31.03.2017, it had granted Term Loan of ₹30.00 Lacs under CGTMSE Guarantee Cover to defendant No.1 through its proprietor defendant No.2 for business purpose. Defendant No.2 stood as guarantor. Again on 09.10.2018, at the request

¶17

¶18

of the defendants, Corporation granted additional Term Loan of ₹20.00 Lacs to defendant No.1 through its proprietor. defendant No.2 for Business Purpose. To secure the loans, Defendant No.2 had mortgaged his land and hypothecated assets (fully detailed in para No.3 of the application). Both the loan facilities were chargeable at different rates of interest. On 30.09.2021, a sum of ₹64,32,195/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

¶19

The Civil Court sent summons to the defendants by registered post, which was duly served. After transfer, Defendants summonses were sent to the defendants. On 06.03.2025, the Defendants did not put in appearance and failed to avail the opportunity of admission and denial of the documents.

¶20

In order to prove its case, the Corporation has placed on record the affidavit of Mr. Gowhar Arif, General Manager, along with the original loan and security documents.

¶21

I have perused the evidence on the record. I am of the considered view that the Corporation has proved its case that it had advanced the total loan of ₹50.00 (₹30.00 Lacs in Term Loan and ₹20.00 Lacs in Additional Term Loan) and on 30.09.2021, a sum of ₹64,32,195/- was due. 6. Accordingly, the case of the Corporation for the recovery of ₹64,32,195/- (Rupees Sixty Four Lacs Thirty Two Thousand One Hundred Ninety Five Only) with interest @10.75% per annum with monthly rests from 19.02.2022, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Corporation can recover its dues by the sale of mortgaged land and hypothecated assets fully detailed in para No.3 of the

¶22

¶23

application as well as from the personal movable and immovable property(ies) of the defendants.

¶24

Pending IAs, if any, stand disposed of.

¶25

Recovery Certificate be issued accordingly.

¶26

Parties are directed to appear before Recovery Officer on 14.07.2026, who is directed to distribute the sale proceeds of the mortgaged land and hypothecated assets as per the provisions of Section 19(20-AB) of the Act .

¶27

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

¶28

Pronounced in the open court. (A S Narang) Dated: 12.06.2026 Presiding Officer DRT-1, Chandigarh

¶29

MANOJ KALRA

Jammu and Kashmir Development Finance Corporation Limited v. New Gash Enterprises

Case brief

What is this about?

What did the court decide?

Jammu and Kashmir Development Finance Corporation Limited v. New Gash Enterprises

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

Mr. Ramkumar Chunnilal Gupta and Another versus Au Small Finance Bank Limited

Shri Jayant So Shyam Lohbare versus Fullerton India Credit Co. Ltd.

Suresh Kumar versus Omkara Assets Reconstruction Private Limited

Nehru Smaraka Vidya Kendra versus Religare Finvest Limited

Ms Maruthi Enterprises versus M/S Religare Finvest Limited

Ram Pal Arora versus Cholamandlam Investment and Finance Company Ltd.