Allowed

Karnataka Gramin Bank v. Thammannagowda and Others

DRT28 Oct 2025OA/1014/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for a Recovery Certificate regarding agriculture and personal loans defaulted by six defendants. The court reduced the interest rate to 6% p.a., permitting recovery jointly and severally against the defendants and their schedule property.

What did the court decide?

Recovery Certificate issued for Rs. 21,13,930.26 with 6% p.a. simple interest from filing date, executable against defendants and schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1014/2024

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BETWEEN:

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Karnataka Gramin Bank (E-Kaveri Gramin Bank) Somanahally Branch, Holenarasipura Taluk, Hasana District-573211 Rep. by its Senior Manager Sri. Ramesh H … APPLICANT

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AND:

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Sri. Thammannagowda S/o. Beeregowda Aged about 59 years

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Miss. Shobha D/o. Thammannagowda Aged about 33 years,

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Miss. Shwetha D/o. Thammannagowda Aged about 31 years

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Sri. G.A. Swamy S/o. Annegowda Aged about 62 years

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Sri. G.A. Manjegowda S/o. Annajigowda Aged about 51 years

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OA. No.1014/2024

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Sri. Annaiah S/o. Hombalegowda Aged about 64 years,

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All are residing at, Guddenahalli Village, Niduvani Post, Holenarsipura Taluk, Hassan District

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Mohamed Afroze Ahamed 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.21,13,930.26 (Rupees Twenty One Lakh Thirteen Thousand Nine Hundred Thirty and Twenty Six Paise 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 the following credit facilities:

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KCC loan of Rs.1,92,000/- on 20.12.2014 for the purpose of cultivation of Tobacco

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Personal loan of Rs.50,000/- on 20.12.2014 to meet consumption.

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OA. No.1014/2024

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ATL Tobacco loan of Rs.50,000/- on 20.12.2014 for the purpose of Barn repair.

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ATL Gold loan of Rs.1,70,000/- on 20.12.2014 for the purpose of daughter’s marriage.

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ATL land loan of Rs.1,50,000/- on 21.10.2015

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ATL allied loan of Rs.1,50,000/- on 19.03.2015 for the purpose of land development.

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DPN loan of Rs.30,000/- on 20.12.2019

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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 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 accounts.

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Despite, service of summons on the defendants, they failed

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to appear, resulting the defendants being set exparte on 02.04.2025.

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OA. No.1014/2024

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A52 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

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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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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 facilities

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as stated in the OA, creation of security interest 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

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OA. No.1014/2024

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within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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was availed for agriculture 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% p.a.(simple).

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In the result, OA.No.1014/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.21,13,930.26 (Rupees Twenty One Lakh Thirteen Thousand

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Nine Hundred Thirty and Twenty Six Paise only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule to the OA be the schedule to the Recovery Certificate.

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OA. No.1014/2024

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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

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan accounts.

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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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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 28^th Day of October 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No.1014/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Ramesh H, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	20.12.2014	Loan application for KCC loan
A2	20.12.2014	Mortgage Deed Agreement form
A3	18.12.2014	Registered Simple Mortgage Deed
A4	02.03.2017	Letter of Commitment
A5	30.03.2019	Letter of Commitment
A6	04.05.2021	Acknowledgement of liability
A7	20.12.2014	Personal loan agreement
A8	20.12.2014	Guarantee Agreement for person loan
A9	20.12.2014	On Demand Pronote
A10	21.12.2016	Acknowledgment of Liability
A11	04.09.2019	Acknowledgment of Liability
A12	20.07.2022	Letter of Revival
A13	20.12.2014	Loan application for ATL Tobacco loan
A14	20.12.2014	Terms, Regulations, and sanction intimation letter
A15	20.12.2014	Mortgage deed agreement form
A16	21.12.2016	Acknowledgment of liability
A17	04.09.2019	Acknowledgment of liability
A18	20.07.2022	Letter of revival
A19	20.12.2014	Loan application for ATL Gold loan
A20	20.12.2014	Terms, regulations and sanction intimation letter
A21	20.12.2014	Mortgage deed agreement
A22	21.12.2016	Acknowledgment of liability
A23	04.09.2019	Acknowledgment of liability
A24	20.07.2022	Letter of Revival

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OA. No.1014/2024

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A25	21.01.2015	Loan application for ATL land loan
A26	21.01.2015	Terms, regulations and sanction intimation letter
A27	21.01.2015	Mortgage deed agreement form
A28	19.01.2015	Registered simple mortgage deed
A29	23.01.2017	Acknowledgment of liability
A30	04.09.2019	Acknowledgment of liability
A31	20.07.2022	Letter of Revival
A32	19.03.2015	Loan application for ATL allied loan
A33	19.03.2015	Terms, regulations, and sanction intimation letter
A34	19.03.2015	Mortgage deed agreement form
A35	17.03.2015	Registered simple mortgage deed
A36	20.03.2017	Acknowledgment of liability
A37	04.09.2019	Acknowledgment of liability
A38	20.07.2022	Letter of revival
A39	20.12.2019	Loan application for DPN loan
A40	20.12.2019	Demand promissory note
A41	20.07.2022	Letter of revival
A42	24.08.2023	Legal notice
A43	07.02.2024	Legal notice
A44	--	Postal receipts six in number
A45	--	Copy of the RPAD un-served postal cover
A46 to A52	--	Statement of accounts

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Karnataka Gramin Bank v. Thammannagowda and Others

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Thammannagowda and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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