Allowed

Karnataka Gramin Bank v. Parvathamma

DRT27 Nov 2025OA/1352/2023

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDB Act, the bank sought a recovery certificate against borrowers and their legal heirs for defaults in agricultural and housing loans. The defendants appeared ex parte. The Tribunal allowed the application, awarding a recovery certificate with reduced interest rates based on the loan purpose and permitting recovery from the schedule property. Con

What did the court decide?

Issuance of recovery certificate for Rs. 68,13,525.94/- with reduced interest, recoverable from heirs and schedule property.

Karnataka Gramin Bank versus Parvathamma — Landlord and Tenant | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1352/2023

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BETWEEN:

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Karnataka Grameena Bank Head office at: Gandhinagar, Bellary 583 103

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Branch office at: Atjawaharnagar Branch, Raichur – 584 101 Raichur District

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Represented by its Branch Manager and principal officer Smt. Suvarna bagoor …APPLICANT

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AND:

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Smt. H Parvathamma W/o. Ramanagouda Aged about 65 years H.no. 1-11-103 Nijalingappa Colony Raichur – 584 101

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Sri. Sharanegouda (Since dead rep by his LR)

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2(a). Smt. Jyothi W/o. Sharanegowda Aged about 45 years H.no. 1-11-103 Nijalingappa Colony Raichur – 584 101

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Sri. Virupanagouda (Since dead rep. by his LR)

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OA-1352/2023

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3(a). Smt. Pooja W/o. Virupanagouda Aged about 40 years H.no. 1-11-103 Nijalingappa Colony Raichur – 584 101 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T P Muthanna 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 for issuance of Recovery Certificate against the defendants for Rs. 68,13,525.94/- (Rupees Sixty Eight Lakhs Thirteen Thousand Five Hundred and Twenty Five and Paisa Ninety Four 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 1^st defendant and deceased borrower Late Sri. Sharanegouda along with defendant No. 3, availed the following credit facilities:

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 PKKCC limit of Rs. 10,00,000/- (Rupees Ten Lakhs Only) for the purpose of crop production/maintenance of machinery/working capital etc.

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Agricultural term loan of Rs. 5,00,000/- (Rupees Five

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Lakhs Only) for the purpose of land development and land.

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Housing loan of Rs. 30,00,000/- (Rupees Thirty Lakhs

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Only) for the purpose of construction of house.

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OA-1352/2023

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

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financed credit facilities, the deceased borrowers Sri. Sharanegouda & Sri. Virupanagouda executed necessary loan documents, apart from the creation of security interest by way of simple mortgage deed over the schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, borrowers 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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 17.10.2024.

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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-25 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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OA-1352/2023

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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 ex parte. The evidence tendered

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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 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 document. 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 are in favour of applicant and hence, this

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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 & Housing loan purpose and also that the OA

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claim is arrived at by calculating interest at the agreed rate, this

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Tribunal is the view that the OA can be allowed with a reduced

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interest of 6.00% & 8.00% (simple) respectively.

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In the result, OA.No.1352/2023 stands allowed,

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

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OA-1352/2023

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Rs. 68,13,525.94/- (Rupees Sixty Eight Lakhs Thirteen Thousand Five

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Hundred and Twenty Five and Paisa Ninety Four Only) with further

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interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no. 2(a), from the defendant no. 3(a) and defendant no.1 to the extent of their inheritance of any estate of deceased borrowers late Sri. Sharanegouda and Sri. Virupanagouda, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not sufficient to clear the liability, the defendant no.1 personally and his assets and from the defendant no. 2(a) and defendant no. 3(a) to the extent of their inheritance of any estate of deceased borrowers Sri. Sharanegouda and Sri. Virupanagouda 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 and transferred to Recovery for execution.

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OA-1352/2023

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

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terms of 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 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

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the Open Court, this the 27^th Day of November, 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: Suvarna, D/o. Sri. Prabhu Kamble, 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	Affidavit evidence
A2	List of documents
A3	Copy of the PKKCC loan application cum sanction dated 27.03.2017
A4	Copy of the request for agricultural overdraft facilities/Pragathi Krishna credit card dated 27.03.2017
A5	Copy of the memorandum of agreement for agricultural loans dated 27.03.2017
A6	Copy of the simple mortgage deed dated 23.03.2017 registered at the office of the sub-registrar Raichur vide doc.no. RCR-1-13423- 2016-17, CD no. RCRD326

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OA-1352/2023

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A7	Copy of the loan application for agri. term loan cum sanction dated 17.04.2017
A8	Copy of the memorandum of agreement for agricultural loans dated 17.04.2017
A9	Copy of the simple mortgage deed dated 15.04.2017 registered at the office of the sub-registrar Raichur vide doc. No. RCR-1-00686- 2017-18, CD no. RCRD329
A10	Copy of the application for housing loan dated 01.07.2017
A11	Copy of loan sanction memorandum dated 25.09.2017
A12	Copy of the pronote and take delivery letter of DPN dated 25.09.2017
A13	Copy of housing loan agreement dated 25.09.2017
A14	Copy of the registered equitable mortgage-LED with schedule – A and B dated 21.09.2017 registered at the office of the sub- registrar Raichur vide doc. No. RCR-1-07363-2017-18, CD no. RCRD346
A15	Copy of the letter of revival dated 16.10.2019
A16	Copy of the letter of revival dated 31.10.2019
A17	Copy of the letter of revival dated 22.05.2020
A18	Copy of the letter of revival dated 22.05.2020
A19	Copy of the letter of revival dated 22.05.2020
A20	Copy of the legal notice dated 10.05.2022
A21	Copy of the legal notice dated 10.05.2022
A22	Copy of the legal notice dated 10.05.2022
A23	Copy of the statement of account certified under banker’s book of evidence act in respect of PKKCC account no. 67315354008719
A24	Copy of the statement of account certified under banker’s book of evidence act in respect of loan account no. 67315326012017
A25	Copy of the statement of account certified under banker’s book of evidence act in respect of housing loan account no. 67315103027617
Witness	Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

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8 OA-1352/2023

Karnataka Gramin Bank v. Parvathamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Parvathamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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