Allowed

Karnataka Gramin Bank v. Sri Hadimani Alamappa

DRT29 Sept 2025OA/1240/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed under Section 19 of the RDB Act seeking a recovery certificate. As defendants appeared ex parte, the Tribunal found the claim of Rs. 30,40,029/- along with interest at 6% p.a. was proved via documentary evidence and scheduled property for execution.

What did the court decide?

Recovery Certificate issued for Rs. 30,40,029/- plus interest at 6% p.a. pending, to be recovered against defendants jointly, severally and personally after credit of payments received; execution to b

Karnataka Gramin Bank versus Sri Hadimani Alamappa — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1240/2024

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BETWEEN:

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Karnataka Grameena Bank Having Its Head Office At: Bellary and one of its Branches At: Dhadesugur Branch, Dhadesugur – 584 167 Sindhanur Taluk, Raichur District – 584 101

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Rep: By Its Branch Manager

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Ramanjini B …APPLICANT

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AND:

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1.Sri. Hadimani Alamappa S/o. Alamappa, Aged About 70 Years, R/at: Dadesugar Village, Sindhanur Taluk, Raichur District – 584 167

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Sri Durgappa, S/o. Basanna, Major R/At Dadesugur Village, Sindhanur Taluk, Raichur District – 584 167

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Sri. Hanumesh, S/o. Sanna Lingappa Major,

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OA-1240/2024

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R/at Dadesugur, Sinhanur Taluk, Raichur District – 584 167 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. PRN Associates Defendants : Ex parte

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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. 30,40,029/-(Rupees Thirty Lakhs Forty Thousand Twenty Nine Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants availed the following credit facilities :

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Kissan OD Term loan of Rs. 5,00,000/-(Rupees Five Lakhs Only) for agriculture purpose.

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KCC loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose growing paddy.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents

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OA-1240/2024

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along with simple mortgage deed and the memorandum agreement.

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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 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 defendants being set ex parte on 14.02.2025.

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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-23 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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OA-1240/2024

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The case put forth by the applicant in the Application remains

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unrebutted as defendants remained ex parte. 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,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is 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 by calculating interest at the agreed rate, this Tribunal is the view

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

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In the result, OA.No.1240/2024 stands allowed,

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

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OA-1240/2024

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Rs. 30,40,029/-(Rupees Thirty Lakhs Forty Thousand Twenty Nine

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Only) with further interest @6.00 % p.a.(simple) from the date of

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filing OA till the realization, from the defendants jointly, severely and personally, 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 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, the defendants jointly, severely and personally and their assets are liable for balance amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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 order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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OA-1240/2024

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

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of September, 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 Ramanjini B, S/o. Lingappa, working as 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	A copy of the loan application with bank sanction dated 17.06.2010
A2	A copy of the agreement and deed for kisan OD dated 17.06.2010
A3	A copy of the request for agricultural overdraft facility/kissan credit card dated 17.06.2010
A4	A copy of the undertaking letter dated 17.06.2010
A5	A copy of the registered simple mortgage deed 24.04.2010
A6	A copy of the application with branch sanction dated 04.12.2014
A7	A copy of the memorandum agreement for agricultural loan dated 04.12.2014

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OA-1240/2024

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A8	A copy of the request for agricultural overdraft facility/kissan credit card dated 04.12.2014
A9	A copy of the undertaking letter dated 04.12.2014
A10	A copy of the registered simple mortgage deed dated 29.11.2014
A11 & A12	The copies of the revival letter dated 24.08.2012 & 16.03.2015
A13 & A14	The copies the revival letter dated 28.08.2017 & 01.03.2018
A15 & A16	The copies of the revival letter dated 24.07.2020 & 26.02.2021
A17 & A18	The copies of the revival letter dated 24.04.2023 & 26.02.2021
A19	A copy of the acknowledgments of security/liability letter dated 26.02.2021
A20 & A21	A copies of the legal notice dated 21.10.2023
A22	A copy of the statement of kissan overdraft loan account no.59415355004231
A23	A copy of the statement of KCC loan account no. 59415354053416

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Hadimani Alamappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Hadimani Alamappa

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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