Tribunal allowed the application for issuance of recovery certificate for an agricultural loan default. Claim against heirs is limited to the estate of the deceased borrower. Interest reduced to 8% p.a. directed.
Issued recovery certificate for Rs. 33,27,515/- with 8% p.a. interest from date of application against schedule property and heirs' estate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 27th Day of March, 2025
Present: Sri. T. RAJESH
Presiding Officer OA.No.1399/2022
BETWEEN:
Karnataka Gramin Bank, (Cauvery Kalpatharu Grameena Bank), Turuvekere Branch, Birla Corner, Turuvekere, Tumkur District- 572227, Represented by its, Branch Manager, Sri. Harsha G.S. S/o Shivaswamy, Aged about 32 years.
…APPLICANT
AND:
All are R/at: Aremallenahalli Village, Kadehalli Post. Turuvekre Taluk, Tumkur District- 572227.
...DEFENDANTS
OA 1399/2022
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Counsel on record/appeared for:
Applicant : Sri. T.S. Mahabaleswara Defendants : Exparte
FINAL ORDER
OA 1399/2022
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hypothecation, RC book deposit, registered simple mortgage deed, letter of commitment and acknowledgement of liability in favour of the applicant bank. Even Though Defendants 2 & 3, the LRs of deceased borrower Late. Chandrashekaraiah was made parties to the OA, no averment connecting them to the liability was made in the OA.
Proof Affidavit reiterating the contentions taken in the OA and
OA 1399/2022
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also produced Exhibits A-3 to A-30 and got the same marked in evidence.
OA claim as against the defendants?
Both these issues are gone into and decided together.
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 the availment of credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the
accounts. The liability of the defendants and the claim of the
amount due is also proved by the above documents. The claim
OA 1399/2022
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of the applicant is well within the limitation. Even though no specific contention is taken against defendant Nos. 2 & 3, their liability is limited to the estate of the deceased borrower is so accepted as proved.
Tribunal find both these issues in favour of applicant and hence,
this Tribunal is of the view that OA is liable to be allowed.
are availed for agricultural purpose and also that 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 8.00% (simple).
sum of Rs. 33,27,515/- (Rupees Thirty Three lakh Twenty Seven
Thousand Five Hundred and Fifteen Only)with further interest @
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8 % p.a.(simple) from the date of filing OA till the realization from the 1st defendant, 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.
ii) If the sale proceeds are not found sufficient to cover
the amount due and payable to the applicant bank as directed above the 1st defendant personally and her other assests are liable to be proceeded against. However, defendant Nos 2 &3 being the LRs of the deceased borrower Late Chandrashekariah are liable only to the extent of the estate inherited by them from the deceased borrower respectively.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within seven days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
with this Final Order.
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14. Communicate a copy of the order to the parties concerned
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16
of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by
me in the Open Court, this the 27th Day of March, 2025].
Sd/- (T. RAJESH)
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mahesh H.K, Branch Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particu | lars of Documents |
|---|---|---|---|
| A1 | -- | Applicant Eviden | ce |
| A2 | -- | List of Documen | ts |
| Agricultural T 4,50,000/- gra account No. present accou |
erm Loan Limit of Rs. nted on 17/12/2007, Old 191/13170014900 and nt No. 42170325000407 |
||
| A3 | 17.12.2007 | Sanction letter letter executed and 1stdefendan |
cum terms and condition by Late. Chandrashekaraih t |
| A4 | 17.12.2007 | Hypothecation A Chandrashekara |
greement executed by Late. ih and 1stDefendant |
| A5 | 17.12.2007 | Supplementary Hypothecation Chandrashekara |
letter to agreement of executed by Late. ih |
| A6 | -- | R.C. book depos | ited with bank |
OA 1399/2022
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| A7 | 12.12.2007 | Registered simple mortgage deed executed by Late. Chandrashekaraih & 1stdefendant. |
|---|---|---|
| A8 | 29.11.2018 | Death Certificate of Chandrashekaraih |
| A9 | 10.11.2010 | Letter of commitment executed by Late.Chandrashekaraih & 1stdefendant |
| A10 | 10.10.2013 | Letter of commitment executed by 1st defendant |
| A11 | 08.10.2016 | Letter of commitment executed by 1st defendant |
| A12 | 06.10.2019 | Letter of revival executed by 1stdefendant |
| A13 | 06.11.2019 | Acknowledgement of liability from the mortgagor by & 1st defendant |
| A14 & A15 |
28.04.2011 | Legal notice & one postal receipts |
| A16 & A17 |
08.10.2016 | Legal notice & one returned RPAD Cover |
| A18 | -- | Statement of account extract |
| Crop loan limit of Rs. 85,000/- Sanctioned on 24.03.2008 Old account No. 921/1370005156 and New loan account N0. 42170354009412 |
||
| A19 | 24.03.2008 | Sanction letter sum terms & condition letter executed by Late. Chandrashekaraih & 1st defendant |
| A20 | 24.03.2008 | Hypothecation Agreement executed by Late. Chandrashekaraih & 1stdefendant |
| A21 | 14.03.2008 | Registered simple mortgage deed executed by Late. Chandrahekariah & 1st defendant |
| A22 | 10.11.2010 | Letter of commitment executed by & 1st defendant |
| A23 | 10.11.2013 | Letter of commitment executed by & 1st defendant |
| A24 | 06.11.2019 | Acknowledgement of liability from the mortgagor executed by 1stdefendant |
| A25 to A29 |
11.02.2022 | Legal notice & two postal receipts & one postal acknowledgment & one returned RPAD cover |
| A30 | -- | Statement of account extract |
OA 1399/2022
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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -
-Nil -
Sd/- (T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the claim as against the defendants?
What order are to be passed?
2 provisions across 1 enactments
Karnataka Gramin Bank
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
