Allowed

Karnataka Gramin Bank v. Huchappannaiah

DRT31 Dec 2025OA/1479/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Karnataka Grameena Bank. In an ex parte proceeding, the Bank sought a recovery certificate for agricultural loans and interest. The Tribunal confirmed the debt was valid but reduced the interest rate to 6% simple to mitigate agricultural hardship, granting execution against both borrowers and mortgaged properties.

What did the court decide?

Recovery of Rs. 21,60,815.95 plus interest at 6% simple p.a. from dates of filing till realization; recovery to be effected against borrowers and schedule properties.

Karnataka Gramin Bank versus Huchappannaiah — Banking and Recovery | 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.1479/2024

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BETWEEN:

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Karnataka Grameena Bank Head office at: Gandhinagar, Bellary – 583 103 Branch office at: Muganayakanakote – 572 222 Gubbi Taluk, Tumkur district

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Represented by its Manager Sri. Vinod Eranna Nesargi …APPLICANT

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AND:

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Sri. Huchappannaiah S/o. obalaiah Aged about 74 years

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Sri. M H shekar S/o. Huchappannaiah Aged about 42 years

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Sri. H Kumar S/o. Huchappannaiah Aged about 40 years

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Smt. Lolakshi B N W/o. Shekar M H Aged about 39 years

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Ms. Navya M S D/o. Shekar M H Aged about 17 years

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OA-1479/2024

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Ms. Jaishree M S D/o. Shekar M H Aged about 14 years

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Defendant’s No. 5 & 6, Since Minors Represented By Their Father Sri. Shekhar (Defendant No.2)

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Smt. Rekha H D/o. Huchappannaiah Aged about 37 years

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Smt. Nagarathna H D/o. Huchappannaiah Aged about 45 years

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Sri. Nagesh S/o. late Rajanna Aged about 32 years

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Defendants are residing at: Muganayakana Kote, Nittur Hobli, Gubbi Taluk, Tumkur District – 572 222 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Velanganni C 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. 21,60,815.95/- (Rupees Twenty One Lakhs Sixty Thousand

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OA-1479/2024

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Eight Hundred and Fifteen and Paisa Ninety Five 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 is availed the following credit facilities:

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KCCs Facility of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose of agricultural activities.

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Agricultural development loan of Rs. 2,00,000/- (Rupees Two Lakhs Only) for the purpose of agricultural.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with Simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 29.01.2025.

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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-12 and got the same marked in evidence.

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OA-1479/2024

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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 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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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 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

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accounts. The liability of the defendants and the claim of the amount due are also proved by the above document. 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 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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OA-1479/2024

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1479/2024 stands allowed,

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

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Rs 21,60,815.95/- (Rupees Twenty One Lakhs Sixty Thousand Eight Hundred and Fifteen and Paisa Ninety Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. 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, the defendants jointly, severally and personally and their assets are liable for all such 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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OA-1479/2024

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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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 31^st Day of December, 2025].

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Sd/-

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(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 Vinod Eranna Nesargi, S/o. Sri. Eranna Nesargi, Manager and authorized officer, of Applicant Bank.

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OA-1479/2024

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Copy of application for crop loan under KCCs dated 19.06.2010
A2	Copy of loan sanction dated 19.06.2010
A3	Copy of the simple mortgage deed of KCCs to agricultural dated 14.06.2010
A4	Copy of the letter of revival dated 01.01.2022
A5	Copy of application for agricultural development loan dated 10.07.2010
A6	Copy of Kissan gold cars scheme sanction communication dated 27.07.2010
A7	Copy of the simple mortgage deed for agricultural development loan to agriculturists dated 30.07.2010
A8	Copy of the letter of revival dated 25.03.2022
A9	Copy of the sale deed dated 27.07.2023
A10	Copy of the legal notice dated 01.03.2024
A11	Copy of the statement of account certified under bankers book of evidence act, showing the outstanding liability under AGRI term loan a/c. no. 42139354026412
A12	Copy of the statement of account certified under bankers book of evidence act, showing the outstanding liability under agricultural loan a/c. no. 42139326001010

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Huchappannaiah

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Huchappannaiah

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

Coram

Case details

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