Allowed

Karnataka Gramin Bank v. Allapatel

DRT12 Nov 2025OA/1006/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application for issuance of Recovery Certificate against three defendants for an agricultural loan default. Due to defendants' absence, evidence was uncontroverted. Interest was reduced to 6% simple for calculation but recovery allowed with 8% simple from filing date.

What did the court decide?

Recovery Certificate drawn for Rs.20,84,412 with 8% simple interest from filing; defendants jointly and severally liable including schedule properties.

Karnataka Gramin Bank versus Allapatel — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1006/2023

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BETWEEN:

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The Karnataka Grameena Bank Bandarwad Branch Afzalpur Taluk, Kalaburagi District, Karnataka State – 585265, Rep. by its Branch Manager Sri. Akash A Heroorkar … APPLICANT

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AND:

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Mr. Allapatel

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Aged about 58 years S/o. Mr. Mahiboobpatel Residing at Hasargundagi village, Afzalpur Taluk, Kalaburagi District Karnataka State – 585265

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Mr. Khaja Patel Aged about 53 years S/o. Mr. Mahiboobpatel Residing at Hasargundagi Village, Afzalpur Taluk, Kalaburagi District Karnataka State – 585265

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Sri. Laxman Aged major S/o. Sri. Hanamanth Koli Residing at Hasargundagi Village, Afzalpur Taluk, Kalaburagi District Karnataka State – 585265

...DEFENDANTS

OA. No.1006/2023

Counsel on record/appeared for:

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Applicant : N.G. Ravi Kumar Defendants : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.20,84,412/- (Rupees Twenty Lakh Eighty Four Thousand Four Hundred and Twelve only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed ATL

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loan of Rs.2,10,000/- for the purpose of IP Set and pipe and accessories and excavation, refilling of line and fitting and KCC loan of Rs.50,000/- for the purpose of lift irrigation.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in

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OA. No.1006/2023

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default in repayment and consequentially turning the loan account as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 27.08.2024.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A23 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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OA. No.1006/2023

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The case put forth by the applicant in the Application

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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OA. No.1006/2023

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13. In the result, OA.No.1006/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.20,84,412/- (Rupees Twenty Lakh Eighty Four Thousand Four Hundred and Twelve only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally and personally and the assets of the defendants, including the schedule properties are liable for all such amounts due under the loan account. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

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^{iii) The applicant bank is allowed cost of the proceeding}

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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OA. No.1006/2023

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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14. Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 12^th Day of November 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Akash A Heroorkar, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	17.04.2007	Loan Application and Translation
A2	03.07.2007	Loan sanction letter
A3	04.07.2007	Loan agreement and translation
A4	04.07.2007	Registered mortgage deed
A5	04.07.2007	Guarantee agreement and translation
A6	01.07.2010	Revival letter – I
A7	01.07.2010	Revival letter – II
A8	15.06.2013	Revival letter – I
A9	15.06.2013	Revival letter – II
A10	25.05.2016	Letter of Revival
A11	08.04.2019	Letter of Revival

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OA. No.1006/2023

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A12	08.04.2019	Acknowledgment of security/liability from mortgagors
A13	01.09.2021	Letter of revival
A14	26.05.2023	Statement of accounts from 07.07.2007 to 26.05.2023 with certificate
A15	27.09.2008	Loan application with translation document
A16	27.09.2008	Loan agreement with translation document
A17	20.09.2011	Revival letter – I
A18	10.09.2014	Revival letter – I
A19	08.09.2017	Letter of revival
A20	01.06.2020	Letter of revival
A21	26.05.2023	Statement of accounts from 02.09.2009 to 26.05.2023 to with certificate
A21a	--	Consolidated statement
A22	02.05.2023	Original legal notice
A23	03.05.2023	Originalpostal receipt

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Allapatel

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Allapatel

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

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Case details

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