Allowed

Karnataka Gramin Bank v. Amarappa

DRT12 Nov 2025OA/120/2025

Case brief

AI extract

What is this about?

Pursuant to an Original Application under Section 19 of the RDB Act, the Tribunal allowed the bank's prayer for a Recovery Certificate against deceased borrower's heirs and a co-obligant, reducing interest to 6% simple for agricultural loans due to an uncontested ex-parte proceeding.

What did the court decide?

Recovery Certificate issued for aggregate sum of Rs.45,01,093.01 with interest at 6% simple p.a. payable from date of filing till realization.

Karnataka Gramin Bank versus Amarappa — 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.120/2025

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BETWEEN:

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Karnataka Grameena Bank, Amongst others a branch office at, Harapura Branch, Muddpura Cross, Maski Road, Sindhanur Taluk, Raichur District- 584128, Represented by its Branch Manager And Principal Officer In-charge of the Branch, Mallayya.

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…APPLICANT

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AND:

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Late Bheemappa Since Deceased, Represented by his Legal Hiers.

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1a. Sri Amarappa, S/o Sri Bheemappa.

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1b. Sri Hanumappa @ Hanumantha, S/o Sri Bheemappa.

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1c. Sri Ayyappa @ Mudukappa, S/o Sri Bheemappa.

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1d. Smt Gowramma, D/o Sri Bheemappa.

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Sri. Devappa Uppar, S/o Sanna Thimappa, Aged about 55 years.

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All are residing at: Hanchinal U, Hampanal, Sindhanur Taluq,

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OA 120/2025

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Raichur District- 584124.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Srinivasa Murthy HC 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 seeking issuance of Recovery Certificate against the defendants for Rs.45,01,093.01 (Rupees Forty Five Lakh One Thousand Ninety Three and Paise One Only) with further interest thereon from the date of filing the Application till realization.

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The borrower Bheemappa is reported deceased and his legal heirs are brough on record as defendant Nos. 1(a) to 1(d).

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It is the case of the applicant that the deceased borrower availed KCC loan of Rs. 1 lakh and the deceased Bheemappa and defendant No. 1(b) as borrowers and defendant No. 2 as co-obligant availed farm machinery loan of Rs. 16,25,000/- (Rupees Sixteen Lakh Twenty Five Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the deceased borrower and defendant No.2 executed necessary loan documents along with letter of revivals, memorandum of agreement for agricultural loans and simple mortgage deed in favour of the applicant bank.

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OA 120/2025

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1. It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrower and defendant No.2 failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts 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 them being set exparte on 03.07.2025.

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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 A-1 to A-21 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

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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 120/2025

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The case put forth by the applicant in the Application 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 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 defendant and the claim of the amount due is 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 finding arrived herein above, the Tribunal find

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both these issues in favour of applicant and hence, 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 are

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availed for Agricultural purpose and also that the OA claim is arrived at

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by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.120/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs.45,01,093.01 (Rupees Forty Five Lakh One Thousand Ninety Three and Paise One Only) with further interest @6.00 % p.a.(simple) as follows:-

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OA 120/2025

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a) Rs. 3,10,873.46 (Rupees Three Lakh Ten Thousand Eight Hundred Seventy Three and Paise Forty Six Only) in KCC from the date of filing OA till realization, after giving credit to all the amounts recovered and received during the pendency of the OA. The defendant Nos. 1(a) to 1(b) being the LR’s of the deceased borrower in the KCC loan are liable only to the extent inherited by them from the deceased borrower.

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b) Rs. 41,90,219.55 (Rupees Forty One lakh Ninety Thousand Two Hundred Nineteen and Paise Fifty Five Only) in farm machinery loan from the date of filing OA till realization, from the defendant Nos. 1(b) & defendant No. 2 jointly, severally & personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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

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amount due and payable to the applicant bank in farm machinery loan account, the defendant No.1(b) & 2 jointly, severally & personally and their assets are liable for all such amounts due under the farm machinery loan account.

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iii) The defendants No.1(a), 1(c) & 1(d) being the LRs of the deceased borrower Bheemappa in farm machinery loan account to the extent of the estate inherited by them from the deceased are liable to be

OA 120/2025

proceeded against.

iv) The applicant bank is allowed cost of the proceedings which

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

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v) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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vi) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), 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)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1- Mallayya S/o Sri Lingappa, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application form cum appraisal report for KCC dated 21.10.2013
A2	Request for agricultural overdraft facilities/ Kisan credit card dated
	21.10.2013 executed by defendants

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OA 120/2025

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A3	Memorandum of agreement for agricultural loans dated 21.10.2013 executed by Bheemappa
A4	Form 3- Form of declaration dated 21.10.2013 executed by Bheemappa
A5	Letter of revival for KCC loan dated 05.06.2015 executed by Bheemappa
A6	Letter of revival for KCC loan dated 10.01.2018 executed by Bheemappa
A7	Letter of revival for KCC loan dated 23.04.2020 executed by the defendant No.1 (a) to (c)
A8	Letter of revival for KCC loan dated 12.04.2023 executed by the defendant No.1 (a) to (c)
A9	Loan application for Tractor/ power tiller/ Combine harvester/ other farm machinery loan (FML) dated 26.08.2014
A10	FML sanction memorandum dated 22.09.2014
A11	Memorandum of agreement for agricultural loan dated 09.10.2014 executed by Bheemappa, defendant No.2 & defendant No. 1(b)
A12	Simple mortgage deed dated 29.09.2014 executed by Bheemappa & defendant No. 1(b)
A13	Letter of revival for FML dated 27.01.2017 executed by Bheemappa & defendant No.2
A14	Letter of revival for FML dated 29.11.2019 executed by the defendant No.2
A15	Letter of revival: Legal heirs of deceased borrowers/ Co-obligants for FML dated 29.11.2019 executed by the defendant No. 1(a) to (c)
A16	Letter of revival for FML dated 18.11.2022 executed by the defendant No.2
A17	Letter of revival: Legal heirs of deceased borrowers/ co-obligants for FML dated 18.11.2022 executed by the defendant No. 1(a) to (c)
A18	Legal notice issued to defendants dated 13.11.2023 in respect of KCC loan account No. 62915354018717
A19	Legal notice issued to defendants dated 13.11.2023 in respect of FML account No. 62915315033114
A20	Statement of account certified under Banker’s book of evidence act in respect of KCC loan account No. 62915354018717
A21	Statement of account certified under Banker’s book of evidence act in respect of KCC loan account No. 62915315033114

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Amarappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Amarappa

Case brief

What is this about?

What did the court decide?

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