Allowed

Karnataka Gramin Bank v. Basappa

DRT28 Nov 2025OA/157/2024

Case brief

AI extract

What is this about?

DT-II Karnataka allowed the original application filed under the RDB Act for issuance of a recovery certificate. With defendants absent, the Tribunal found the bank's evidence sufficient for loan default and liability. The order granted recovery of dues with reduced simple interest.

What did the court decide?

Recovery Certificate issued against defendants jointly and severally for principal and interest at 6.00% simple p.a.; order transmitted for execution.

Karnataka Gramin Bank versus Basappa — 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 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.157/2024

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BETWEEN:

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Karnataka Grameena Bank Yerigera Branch, 1^st Floor, Kristaiah Building Mantralaya Road, Yerigera, Raichur, Karnataka – 584 133

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Represented by its Branch Manager

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Sri. Suresh Kumar …APPLICANT

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AND:

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Sri. Basappa S/o. Sri. Hanumanthappa Aged about 39 years R/at: Kothadoddi Village, Devadurg Taluk, Raichur District – 584 111

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Sri. Kurubar Mahadev S/o. Sri. Boddu Hussainapa Aged about 49 years R/at: Kothadoddi Village, Devadurg Taluk, Raichur District – 584 111 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prakash Hegde K Defendants : Ex parte

OA-157/2024

FINAL ORDER

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. 57,74,067.40/- (Rupees Fifty Seven Lakhs Seventy Four Thousand and Sixty Seven and Paisa Forty 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 is availed an plantation and horticulture loan of Rs. 8,00,000/- (Rupees Eight Lakhs Only) on 21.03.2009.

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

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It is further contended that, despite availing the credit facility, 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 23.08.2024.

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OA-157/2024

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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-13 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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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 facility 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

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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OA-157/2024

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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 Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are 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.157/2024 stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs. 57,74,067.40/- (Rupees Fifty Seven Lakhs Seventy Four Thousand and Sixty Seven and Paisa Forty 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 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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OA-157/2024

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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

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receipt of the order.

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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 the Open Court, this the 28^th Day of November, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-157/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Badasab Nadaj, S/o. Jamalsab Nadaj, 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	Loan application dated 03.03.2009
A2	Sanction letter dated 21.03.2009
A3	Memorandum of agreement for agriculture loans dated 26.03.2009
A4	Simple mortgage deed dated 25.03.2009
A5	Letter of revival 13.01.2012
A6	Letter of revival 10.01.2015
A7	Letter of revival 19.04.2017
A8	Letter of revival 03.03.2020
A9	Letter of revival 14.02.2023
A10	Acknowledgement of security/liability from mortgagor dated 30.03.2019
A11	Statement of accounts no. 2008000001 later renumbered as account no. 86315333000108
A12	Legal notice dated 26.10.2023
A13	Postal receipts

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Basappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Basappa

Case brief

What is this about?

What did the court decide?

What the court decided

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