Bilal & Company And Others Vs Authorized Officer Jammu And Kashmir Bank Limited And Others (DRT Chandigarh)
The case before the Debt Recovery Tribunal (DRT), Chandigarh involved a Securitization Application filed under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The applicants challenged recovery measures initiated by the authorized officer of Jammu and Kashmir Bank Limited.
The bank had sanctioned credit facilities to the applicants, which remained unpaid. Consequently, the bank initiated SARFAESI proceedings by issuing a demand notice under Section 13(2) of the Act and later obtained an order under Section 14 from the Chief Judicial Magistrate for further action.
Before approaching the Tribunal, the applicants had filed a writ petition before the Jammu and Kashmir High Court challenging the SARFAESI measures and the order passed by the Chief Judicial Magistrate. On 17.10.2025, the High Court directed the applicants to deposit 50% of the outstanding liability within two weeks and restrained the bank from taking coercive action during that period. The court also clarified that if the deposit was not made within the specified time, the bank would be free to proceed against the applicants and no further request for depositing the amount would be entertained.
