Allowed

Pragathi Krishna Gramin Bank v. Laxmi Mallu Mugin

DRT31 Dec 2025OA/1269/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application by Karnataka Grameena Bank seeking issuance of a Recovery Certificate against two defendants for agricultural and term loans. Defaulting on repayments, the applicants claimed Rs. 20,97,279.19. Since respondents were absent, the claim was proved via documentary evidence. The Tribunal granted recovery of the principal with reduced simple interest at 6% p.

What did the court decide?

Recovery Certificate to be drawn for an aggregate sum of Rs. 20,97,279.19 with further interest @ 6% p.a. (simple) to be recovered from the defendants jointly, severally & personally, against their as

Pragathi Krishna Gramin Bank versus Laxmi Mallu… — 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 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1269/2022

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BETWEEN:

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Karnataka Grameena Bank, (Earlier Krishan Grameena Bank), Desai Kallur Branch, Afzalpur Taluk, Kalaburgi District, Represented by its Senior Manager, Sri. Abhijeet Ronihal, S/o Sri Bheemaraya, Aged about 33 years, R/at No. E/4/250, Shiva Nivas, 4^th Cross, M B Nagar, Gulbarga, Kalaburagi, Karnataka- 585105.

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…APPLICANT

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AND:

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Smt. Laxmi Mallu Mugin, W/o Mallu Ghattaragi, Aged about 42 years, R/at: Ghattargi Village, Afzalpur Taluk, Kalaburgi District- 585301.

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Sri Babu Sharanappa Ammani, Age Major, R/at Ghattargi, Afzalpur Taluk, Kalaburgi District- 585301.

...DEFENDANTS

OA 1269/2022

Counsel on record/appeared for:

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Applicant : T S Mahabaleswara 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. 20,97,279.19 (Rupees Twenty Lakh Ninety Seven Thousand Two Hundred Seventy Nine and Paise Nineteen 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 agricultural term loan of Rs. 2,51,000/- (Rupees Two lakh Fifty One Thousand Only), crop loan limit of Rs.40,000/- (Rupees Forty Thousand Only) and term loan limit of Rs. 30,000/- (Rupees Thirty Thousand Only). 3. It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with simple mortgage deed, guarantee letter and revival letters. 4. It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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OA 1269/2022

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Despite, Summons on defendants they failed to appear resulting the defendants being set exparte on 20.11.2023.

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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-28 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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The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by

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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 the security interest 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

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OA 1269/2022

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documents. The claim of the 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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are availed for Agriculture purpose and also that the 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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In the result, OA.No.1269/2022, stands allowed,

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

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20,97,279.19 (Rupees Twenty Lakh Ninety Seven Thousand Two Hundred

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Seventy Nine and Paise Nineteen Only) with further interest @6.00 %

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p.a.(simple) as follows:-

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a) Rs. 18,44,439.28 (Rupees Eighteen Lakh Forty Four Thousand Four

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Hundred Thirty Nine and Paise Twenty Eight only) in Agricultural term loan account from the date of filing OA till the realization, from the defendants jointly, severally & 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.

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OA 1269/2022

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b) Rs. 2,11,150.91 (Rupees Two Lakh Eleven Thousand One Hundred Fifty

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and Paise Ninety One Only) in crop loan account from the date of filing OA till the realization, from the defendants jointly, severally & 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 the defendants jointly, severally & personally and their assets. c) Rs. 41,689.00 (Rupees Forty One Thousand Six Hundred Eighty Nine Only) in term loan account from the date of filing OA till the realization, from the defendants jointly, severally & 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 the defendants jointly, severally & personally and their assets.

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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 agricultural term loan account, the defendants jointly, severally & personally and their assets are liable for amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 and

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OA 1269/2022

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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 31^st Day of December, 2025].

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Sd/- (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: Amarnath N Shetty, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
		Agricultural term loan limit of Rs. 2,51,000/- sanctioned on 21.12.2006 in loan account No. 11215326036906
A1	21.12.2006	Loan agreement along with translated copy
A2	21.12.2006	Guarantee letter along with translated copy
A3	15.12.2006	Simple mortgage deed
A4	10.12.2009	Revival letter
A5	02.12.2012	Revival letter
A6	23.11.2015	Revival letter
A7	13.11.2018	Revival letter
A8	13.11.2018	Acknowledgement of security/ liability from the mortgagor
A9	02.11.2021	Revival letter
A10	13.06.2022	Office copy of legal notice

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OA 1269/2022

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A11	--	Statement of account extract
		Crop loan limit of Rs. 40,000/- sanctioned on
		05.10.2007 in loan account No. 11215354016715
A12	05.10.2007	Crop loan/ renewal application along with translated copy
A13	05.10.2007	Loan agreement along with translated copy
A14	05.10.2007	Contract letter along with translated copy
A15	25.09.2010	Revival letter
A16	18.09.2013	Revival letter
A17	20.08.2016	Revival letter
A18	08.08.2019	Revival letter
A19	13.06.2022	Office copy of legal notice
A20	--	Statement of account extract
		Term loan limit of Rs. 30,000/- sanctioned on
		05.10.2007 in loan account No. 11215326058407.
A21	23.06.2007	Loan application along with translated copy
A22	20.06.2010	Revival letter
A23	10.06.2013	Revival letter
A24	02.06.2016	Revival letter
A25	22.05.2019	Revival letter
A26	27.04.2022	Revival letter
A27	13.06.2022	Office copy of legal notice
A28	--	Statement of account extract

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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

Pragathi Krishna Gramin Bank v. Laxmi Mallu Mugin

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Laxmi Mallu Mugin

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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