Allowed

Karnataka Bank Limited v. Basavraju

DRT29 Sept 2025OA/1301/2024

Case brief

AI extract

What is this about?

RDT allowed the bank's application for a recovery certificate. Uncontested, the Tribunal reduced the interest rate to 12% p.a. Simple, permitting recovery from assets and jointly against the defendants.

What did the court decide?

Recovery certificate issued for Rs.10.14 crore plus interest at 12% p.a. simple; defendants personally and jointly severally liable for balance if property sale proceeds are insufficient.

Karnataka Bank Limited versus Basavraju — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1301/2024

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BETWEEN:

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Karnataka Bank Ltd. Branch Office at: Tumakuru Someshwarapuram Branch, Main Road, Someshwarapuram, Tumakuru District, Karnataka …APPLICANT

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AND:

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T.C. Basavraju S/o Chikkanna

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Smt. Shivamma Y.C. W/o T.C. Basavaraj

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Both are R/at: Maralenahalli, Sira Gate, Tumakuru City-572106 Tumakuru Taluk, Tumakuru District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Nitin Chandra. M Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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OA 1301-2024

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate Rs.10,14,77,629.81 (Rupees ten crore fourteen lakh seventy seven thousand six hundred twenty nine and paise eighty 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 defendants availed the following credit facilities from the applicant bank:-

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I. Term Loan-I of a sum of Rs.6,00,00,000/- (Rupees six crore Only),

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II. Term loan-II limit of Rs.79,36,000/- (Rupees seventy nine lakh thirty six thousand Only).

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It is also the case of the applicant that, in view of the above

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amount financed, the defendants executed necessary loan documents along with memorandum of deposit, term loan agreement, sanction order and recall notice in favor of the applicant bank.

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

OA 1301-2024

accounts as NPA.

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 exparte on 12.02.2025.

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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 the proof affidavit.

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The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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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 1301-2024

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10. The case put forth by the applicant in the Application

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remains unrebutted as defendant 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 mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due

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is also proved by the above documents. The claim of the applicant is well within the limitation.

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11. Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants for Term Loan purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @12% p.a.(Simple).

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OA 1301-2024

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In the result, OA.No.1301/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.10,14,77,629.81 (Rupees ten crore fourteen lakh seventy seven thousand six hundred twenty nine and paise eighty one only) with further interest @ 12% p.a. (Simple), from the date of filing OA till the realization, from the defendants 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 proceedings 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 sufficient, the defendants

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jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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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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OA 1301-2024

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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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in terms of this final order.

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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 DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of September, 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: Bheemesha S S, Branch Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Documents are appended in this order.

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Karnataka Bank Limited v. Basavraju

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Basavraju

Case brief

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What did the court decide?

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