Allowed

Karnataka Gramin Bank v. Sri Basavaraj

DRT29 Sept 2025OA/1242/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Karnataka Grameena Bank for issuance of a Recovery Certificate against defendants for an agricultural loan default. The defendants appeared ex parte. The Tribunal reduced future interest to 6% p.a. and permitted recovery from the defendants personally and against schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 34,48,331.01 with further interest at 6% p.a. to be recovered jointly, severally and personally from defendants No.2 & 3 and from the schedule property.

Karnataka Gramin Bank versus Sri Basavaraj — Banking and Recovery | 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

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Presiding Officer

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OA. No.1242/2024

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BETWEEN:

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Karnataka Grameena Bank Having Its Head Office At: Bellary and one of its Branches At: Gorebal Branch, Gorebal, Sindhanur Taluk, Raichur District – 584 128

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Rep: By Its Branch Manager, Kondepudi Satyavenkat …APPLICANT

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AND:

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Sri. Basavaraj, S/O. Kumarappa, R/at, Sidrampura, Sindhanur Taluk, Raichur District.

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Sri. Devandragouda, S/O. Veeranagouda, Major, R/at: Siddrampura, Sindhanur Taluk, Raichur District – 584 128

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Sri Mallappa Somanal, S/O Siddappa, Major,

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OA. No. 1242/2024

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R/At: Sidrampura, Sindhanur Taluk, Raichur District - 584 128 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : B Prasanna Kumar Defendans : 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 for seeking issuance of Recovery Certificate against the defendants for Rs. 34,48,331.01/- (Rupees Thirty Four Lakhs Forty Eight Thousand And Three Hundred And Thirty One And Paisa One 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 Late borrower Smt.

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Mahadevamma along with the defendant No.2 availed the following credit facilities:

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Kissan over draft loan of Rs. 4,50,000/- (Rupees Four Lakhs Fifty Thousand Only) on 09.03.2010 for the purpose of development activity.

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KCC loan of Rs. 2,00,000/- (Rupees Two Lakhs Only) on 0809-2009.

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OA. No. 1242/2024

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The deceased borrower and the defendants No.2 & 3 have executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower had also executed Simple Mortgage Deed dated 03.03.2010.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in defaults 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 as against the defendants.

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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 let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A35 and got the same marked in evidence.

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OA. No. 1242/2024

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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 the 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 orders 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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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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OA. No. 1242/2024

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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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Since the OA claim is arrived at by calculating agreed rate

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of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at reduced rate @ 6.00% p.a.

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In the result, OA.No.1242/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 34,48,331.01/- (Rupees Thirty Four Lakhs Forty Eight Thousand And Three Hundred And Thirty One And Paisa One Only) with further interest of 6.00% p.a.(simple) from the date of filing

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OA till the realization, from the defendants No.2 & 3 and to the extent of their inheritance of any estate from the deceased borrower Late Smt. Mahadevamma, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants No.2 & 3 jointly, severally and personally and also by proceeding against the schedule property. The schedule property

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OA. No. 1242/2024

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to the OA be the schedule property 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 No.2 & 3 jointly, severally and personally and their 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

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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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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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 29^th Day of September 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 1242/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Honnappa H C, S/o. Hanumantappa worked as Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	A copy loan application and appraisal form dated 17.02.2010
A2	A copy of the co-obligant letter of acceptance dated 17.02.2010
A3	A copy of the agreement and deed for kissan od dated 09.03.2010
A4	A copy of request for agricultural over draft facilityletter dated 09.03.2010
A5	A copy of the under kissan credit card and further executed convents letter by the co- obligant dated 09.03.2010
A6	A copy of the registered simple mortgage deed dated 03.03.2010
A7	A copy of the loan application with sanction dated 08.09.2009
A8	A copy of the acceptance letter dated 08.09.2009
A9	A copy of the agreement cum deed of hypothecation for agricultural loan dated 08.09.2009
A10	A copy of the request for agricultural over draft facilityletter dated 08.09.2009
A11	A copy of the under kissan credit card and further executed covenants letter dated 08.09.2009
A12	A copy of the registered mortgage deed dated 18.08.2009
A13 & A14	A copy of the revival letter dated 04.05.2012, 18.04.2012
A15 & A16	A copy of the revival letter dated 16.03.2015, 09.04.2015

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OA. No. 1242/2024

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A17 & A18	A copyof the revival letter dated 16.01.2018
A19 & A20	A copy of the revival letter dated 29.10.2020, 09.11.2020
A21 & A22	A copyof the revival letter dated 08.09.2023
A23 & A24	A copy of the revival of legal heirs dated 16.03.2015,09.04.2015
A25 & A26	A copy of the revival of legal heirs dated 16.01.2018
A27 & A28	A copy of the revival of legal heirs dated 29.10.2020,09.11.2020
A29 & A30	A copy of the revival legal heirs dated 08.09.2023
A31	A copy of the acknowledgment of liability letter dated 17.04.2020
A32 & 33	A copyof the legal notice dated 28.08.2023
A34	A copy of the statement of kissan over draft account no. 61015355093913
A35	A copy of the KCC loan account no. 61015354046915

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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 Basavaraj

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Basavaraj

Case brief

What is this about?

What did the court decide?

What the court decided

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