Allowed

Karnataka Gramin Bank v. Bhajantri Shivappa and Ors.

DRT28 Oct 2025OA/174/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed application for recovery certificate regarding agricultural loan default, granting reduced interest rate and order for joint and several liability of borrowers and heirs.

What did the court decide?

Recovery certificate issued for Rs.26,26,667.55 plus 6% simple interest from filing date till realization, recoverable from defendants jointly severally and personally or via sale of schedule properti

Karnataka Gramin Bank versus Bhajantri Shivappa and Ors. — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.174/2024

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BETWEEN:

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Karnataka Grameena Bank

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Branch office at:

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Harapur Village, Sindhanur Tq- 584128 Raichur District

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…APPLICANT

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AND:

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Sri. Bhajantri Shivappa S/o. Sri. Shamappa R/at: Elekudilgi Village, (P) Harapur Tq, Sindhanur- 584128

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Sri. Late Bhajantri Shamappa (Since deceased) Rep by legal Representatives:

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2 (a). Smt. Huligemma w/o. Bhajantri Shamappa

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2 (b). Sri. Bhajantri Basavaraj S/o. Bhajantri Shamappa R/at: Near Police Station (Behind Drop) Tavargera Taluk Kastagi

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Sri. Hire Basappa S/o. Mudukappa R/at: Elekudilgi Village. (P) Harapur Tq Sindhanur- 584128

...DEFENDANTS

OA 174-2024

Counsel on record/appeared for:

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Applicant : M & R Consult 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 Rs.26,26,667.55 (Rupees twenty six lakh twenty six thousand six hundred sixty seven and paisa fifty five only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 is the borrower and defendant No.2 was a deceased borrower with Defendants No.2a & 2b as its legal heirs and defendant No.3 as co-borrower availed Agricultural Loan credit facilities of Rs.4,77,000/- (Rupees four lakh seventy seven thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with memorandum of agreement, simple mortgage deed and letters of revival in favor of the applicant bank.

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OA 174-2024

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, 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 defendant being set exparte on 06.11.2024.

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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-14 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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the contentions as taken in the OA in the light of documentary evidence and the 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

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OA 174-2024

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OA claim as against the defendant?

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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 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 availment of credit facilities as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this Tribunal find both these issues 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 facilities

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are availed by defendants and (deceased borrower Late Sri. Bhajantri Shamappa) for agricultural purpose and also that OA

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OA 174-2024

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

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Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.174/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.26,26,667.55 (Rupees twenty six lakh twenty six

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thousand six hundred sixty seven and fifty five only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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No.1 & 3 jointly severally and personally after giving credit to all

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the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against

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the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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No.1 & 3 jointly severally and personally and their other assets

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are liable to be proceeded against for the balance amount.

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iii) The defendants No.2a and 2b being the LR’s of the

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deceased Bhajantri Shamappa are liable only to the extent of

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estate inherited from the deceased.

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OA 174-2024

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

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order and transferred to Recovery for execution.

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vi) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 28^th day of October, 2025].

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Sd/ (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: Sri. Mallayya, Branch Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	09.12.2004	Copy of application for agricultural farm mechanization loan
A2	10.12.2004	Copy of the FML sanction memorandum
A3	21.12.2004	Memorandum of agreement for agricultural loans

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OA 174-2024

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A4	17.12.2004	Copy of Simple Mortgage deed
A5	01.12.2007	Letter of Revival
A6	03.11.2010	Letter of Revival
A7	31.08.2013	Letter of Revival
A8	31.08.2013	Letter of Revival
A9	18.06.2016	Letter of Revival
A10	29.03.2019	Letter of Revival
A11	29.03.2019	Letter of Revival
A12	29.03.2022	Letter of Revival
A13	20.02.2023	Legal Notice
A14		Copy of the statement of account certified under Banker’s book of evidence Act, in respect of Loan A/c.62915325000604

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Bhajantri Shivappa and Ors.

Case brief

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What did the court decide?

Karnataka Gramin Bank v. Bhajantri Shivappa and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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