Allowed

Karnataka Gramin Bank v. K N Nagaraja

DRT31 Dec 2025OA/1764/2023

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed an Original Application seeking a Recovery Certificate against three defendants for unpaid agricultural loans totaling approx. Rs. 46.41 Lakhs. The defendants appeared ex parte. The court reduced interest to 6% simple interest and permitted recovery from joint and several assets.

What did the court decide?

Recovery Certificate issued for Rs. 46,41,415 including future interest at 6% simple p.a., recoverable from joint and several assets including schedule property.

Karnataka Gramin Bank versus K N Nagaraja — 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.1764/2023

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BETWEEN:

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Karnataka Grameena Bank, One of its Branch Offices at Hudukula Branch, Bangarpet Taluk, Kolar District, Pin Code: 563114, Represented by its ManagerSri. Jammu Srinu, Son of Sri. Nagaraju, Aged about 30 years.

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…APPLICANT

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AND:

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Sri. K.N. Nagaraja, Son of Sri. Nanjamari K.V, Aged about 53 years.

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Sri. Nanjamari K.V. S/o Late Venkatappa, Aged about 80 years.

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Def Nos. 1 & 2 are the residents of Kooteri Village, KNS Post, Kolar Taluk and Kolar District.

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Sri. R. Srinivasa, S/o Ramaiah, Aged about 56 years, Resident of Chikkahasala Village, KNS Post, Kasaba Hobli, Kolar Taluk and Kolar District, Pin Code: 563101.

...DEFENDANTS

OA 1764/2023

Counsel on record/appeared for:

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Applicant : K. Aswathanarayana 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. 46,41,415/- (Rupees Forty Six Lakh Forty One Thousand Four Hundred Fifteen 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 availed plantation and horticulture loan of Rs. 30,00,000/- (Rupees Thirty Lakh Only) and Kisan Credit loan of Rs. 3,90,000/- (Rupees Three Lakh Ninety Thousand Only).

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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 letter of revivals and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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

OA 1764/2023

due in the account.

Despite, Summons on defendants they failed to appear resulting the defendants being set exparte on 28.08.2024.

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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-3 to A-32 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

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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 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 the security interest and the defaults committed in the accounts. The liability of the

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OA 1764/2023

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defendants and the claim of the amount due are also proved by the above

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documents. 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 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 are

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availed for Agriculture purpose and also that the 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 6.00% (simple).

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In the result, OA.No.1764/2023, stands allowed,

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

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46,41,415/- (Rupees Forty Six Lakh Forty One Thousand Four Hundred Fifteen Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, 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.

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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,

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OA 1764/2023

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severally & personally and their assets are liable for amounts due under

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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

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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 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: Jammu Srinu, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A3	25.11.2013	Loan application for agricultural term loans submitted
		by the borrowers defendant Nos. 1 & 2- Sri. K.N.
		Nagaraja and Sri. K.V. Nanjamari & Co-obligant-Sri.

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OA 1764/2023

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		R Srinivasa defendant No.3, in favour of the applicant for grant of plantation & horticultural crop loan of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) for the purpose of establishing poly house for Capsicum Crop
A4	06.02.2014	Sanction memorandum issued by the regional office- Kolar of the applicant in favour of the applicant’s Hudukula Branch, acknowledged by the defendant Nos. 1 & 2.
A5	13.02.2014	Loan sanction conveying letter issued by the applicant in favour of the defendants
A6	13.02.2014	Memorandum of agreement for agricultural loans executed by the borrowers defendant Nos. 1 & 2- Sri. K.N. Nagaraja and Sri. K.V. Nanjamari & Co-obligant- Sri. R Srinivasa defendant No.3, in favour of the applicant for grant of plantation & horticultural crop loan of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) for the purpose of establishing poly house for Capsicum Crop.
A7	07.02.2014	Simple mortgage deed executed by the borrowers defendant Nos. 1 & 2- Sri. K.N. Nagaraja and Sri. K.V. Nanjamari & Co-obligant- Sri. R Srinivasa defendant No.3, in favour of the applicant for grant of plantation & horticultural crop loan of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) for the purpose of establishing poly house for Capsicum Crop
A8	13.01.2017	Letter of revival executed by the defendant Nos 1 & 2 in favour of the applicant
A9	13.01.2017	Letter of revival executed by the defendant No.3 in favour of the applicant
A10	29.06.2019	Letter of revival executed by the defendants Nos. 1 & 2 in favour of the applicant
A11	29.06.2019	Letter of revival executed by the defendants No.3 in favour of the applicant
A12	26.05.2022	Letter of revival executed by the defendants Nos. 1 & 2 in favour of the applicant
A13	26.05.2022	Letter of revival executed by the defendants No.3 in favour of the applicant
A14	25.07.2023	Legal notice issued to the defendants
A15 to A17	27.07.2023	Certified postal tracking with receipts
A18	19.09.2023	Statement of account of agricultural term loan (ATL)- EI A/c No. 66115315013414 with interest calculation sheet and certificate
A19	30.04.2014	Loan application for kisan credit loan submitted by the borrowers defendant Nos. 1 & 2- Sri. K.N. Nagaraja and Sr K.V. Nanjamari & Co-obligant- Sri. R. Srinivasa defendant No.3 in favour of the applicant

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OA 1764/2023

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		for grant of Kisan credit loan of Rs. 3,90,000/- (Rupees Three Lakhs Ninety Thousand Only) for growing hybrid tomato crop.
A20	26.05.2014	Sanction memorandum issued by the regional office- kolar of the applicant in favour of the applicant’s Hudukula Branch, granting kissan credit loan of Rs. 3,90,000/- (Rupees Three Lakh Ninety Thousand Only) for growing hybrid tomato crop)
A21	29.05.2014	Memorandum of agreement for agricultural loans executed the borrowers defendant Nos. 1 & 2- Sri. K.N. Nagaraja and Sr K.V. Nanjamari & Co-obligant- Sri. R. Srinivasa defendant No.3 in favour of the applicant for grant of Kisan credit loan of Rs. 3,90,000/- (Rupees Three Lakhs Ninety Thousand Only) for growing hybrid tomato crop.
A22	27.05.2014	Simple mortgage deed executed the borrowers defendant Nos. 1 & 2- Sri. K.N. Nagaraja and Sr K.V. Nanjamari & Co-obligant- Sri. R. Srinivasa defendant No.3 in favour of the applicant for grant of Kisan credit loan of Rs. 3,90,000/- (Rupees Three Lakhs Ninety Thousand Only) for growing hybrid tomato crop.
A23	04.05.2017	Letter of revival executed by the defendant Nos. 1 to 3 in favour of the applicant
A24	29.06.2019	Letter of revival executed by the defendant Nos. 1 & 2 in favour of the applicant
A25	29.06.2019	Letter of revival executed by the defendants Nos. 2 & 3 in favour of the applicant
A26	23.05.2022	Letter of revival executed by the defendants Nos. 1 & 2 in favour of the applicant
A27	23.05.2022	Letter of revival executed by the defendant No. 3 in favour of the applicant
A28	25.07.2023	Legal notice issued to the defendants
A29 to A31	27.07.2023	Certified postal tracking with receipts
A32	19.09.2023 & 04.10.2023	Statement of account of kissan credit A/c NO.10661131002555, with interest calculation sheet and certificate.

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. K N Nagaraja

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. K N Nagaraja

Case brief

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What did the court decide?

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