Allowed

Karnataka Gramin Bank v. Gowramma

DRT29 Sept 2025OA/1595/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Karnataka Grameena Bank for recovery of dues of Rs. 29,50,589.55 against legal heirs of borrowers. The amount payable is reduced to 6.00% simple interest. The applicant is directed to draft a Recovery Certificate.

What did the court decide?

Recovery Certificate directed to be drawn and transferred for execution for Rs. 29,50,589.55 with 6% simple interest from date of filing OA.

Karnataka Gramin Bank versus Gowramma — Contract and Commercial Disputes | 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 29^th Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1595/2024

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BETWEEN:

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Karnataka Grameena Bank, Branches amongst others, one at M/s. Karnataka Grameena Bank, Magadi Branch, Kalya Gate, Magadi Taluk, Ramanagar District- 562120, Represented by Manager, Mr. Shivakumar P.G.

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…APPLICANT

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AND:

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Late Gowramma, Deceased – Represented by LR’s D2 to D4.

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Sri. Shivalingegowda, S/o Late Sri. Lingappa, Aged about 64 years.

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Sri. Chandrashekhar, S/o Late Sri. Lingappa, Aged about 59 years.

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Sri. Suresh, S/o Late Sri. Lingappa, Aged about 42 years.

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D2 to D4 are residing at: R/o Seegekuppe, Madabai Hobli, Magadi Taluk, Ramanagar District- 562120.

...DEFENDANTS

OA 1595/2024

Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Exparte

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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 issuance of Recovery Certificate against the defendants for Rs. 29,50,589.55 (Rupees Twenty Nine Lakh Fifty Thousand Five Hundred Eighty Nine and Paise Fifty Five Only) with further interest thereon from the date of filing the Application till realization.

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The deceased Gowramma along with defendant Nos. 2 to 4 and late Lingappa availed KCC loan of Rs. 2,00,000/- (Rupees Two lakh Only) and agricultural term loan of Rs. 5,00,000/- (Rupees Five Lakh Only). The defendant Nos. 2 to 4 are the legal heirs of the deceased Gowramma and Lingappa.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Simple mortgage deed, hypothecation agreement, letter of commitment and letter of revival.

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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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OA 1595/2024

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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 Nos. 2 to 4 they failed to appear, resulting the defendants Nos. 2 to 4 being set exparte on 18.02.2025.

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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-29 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 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

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unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove

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OA 1595/2024

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availment of credit facilities as stated in the OA, creation of security

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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 of the applicant is

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well within the limitation.

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Hence in view of the finding arrived herein above, the Tribunal find

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both these issues in favour of applicant and hence, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1595/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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29,50,589.55 (Rupees Twenty Nine Lakh Fifty Thousand Five Hundred Eighty Nine and Paise Fifty Five Only) with further interest @6.00 %

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p.a.(simple) from the date of filing OA till the realization, from the defendants Nos. 2 to 4 jointly, severally & personally after giving credit

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to all the amounts recovered and received during the pendency of the OA

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and allowed to recover the same by proceeding against the schedule

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OA 1595/2024

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property. 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 No. 2 to

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4 jointly, severally & personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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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v) Interim application pending, if any, are disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of September, 2025].

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PRESIDING OFFICER

Sd/- (T. RAJESH)

OA 1595/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Shivakumar PG S/p Prabhogouda, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	24.09.2010	Simple mortgage deed registered as document No. MGD-1-01375-2010-11, at the office of Sub-registrar, Magadi
A2	24.09.2010	Simple mortgage deed registered as document No. MGD-1-01376-2010-11, at the office of Sub-Registrar, Magadi
A3	24.09.2010	Simple mortgage deed registered as document No. MGD-1-01377-2010-11, at the office of Sub-registrar, Magadi
A4	26.11.2012	Application for crop loan under kisan credit card
A5	26.11.2012	Hypothecation agreement
A6	26.11.2012	Agreement, provisions letter
A7	05.11.2015	Letter of commitment
A8	28.02.2018	Acknowledgement of liability
A9	13.11.2020	Letter of revival
A10	07.10.2023	Letter of revival
A11	29.11.2011	Application for agricultural loan
A12	29.02.2012	ATL sanction communication
A13	26.03.2012	Simple mortgage deed registered as document No. MGD-1-05805-2011-12, at the office of sub-registrar, Magadi
A14	09.04.2012	Hypothecation agreement
A15	09.04.2012	Agreement, provisions letter
A16	09.06.2020	Agreement to repay time barred debts
A17	01.03.2023	Letter of revival
A18 & A19	04.08.2023	Two legal notices
A20 to A25	--	Six postal covers returned as addresses refused
A26	--	Old bank statement (A/c No. 85007268067)
A27	--	Old Bank statement (A/c No. 85004381783)

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OA 1595/2024

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A28	--	Bank statement (A/c No. 12183130000051)
A29	--	Bank statement (A/c No. 42183326000212

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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. Gowramma

Case brief

What is this about?

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Karnataka Gramin Bank v. Gowramma

Case brief

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What did the court decide?

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