Allowed

Karnataka Gramin Bank v. Ramesh

DRT29 Aug 2025OA/1770/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for issuance of a recovery certificate of Rs. 23,19,627/- against defaulting loan availed for agricultural purposes, reducing the interest rate to 6.00% p.a. simple.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 23,19,627/- with interest @ 6% p.a. simple, recoverable jointly and severally from respondents, proceeds payable to applicant after crediting

Karnataka Gramin Bank versus Ramesh — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1770/2023

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BETWEEN:

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Karnataka Grameena Bank, Having a Branch at, Kamadenahalli, Kolar Taluk, Kolar District – 563 101, Represented by its Branch Manager, Sri. J Venkateshappa, S/o Sri. Jayaramaiah, Aged about 58 years.

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…APPLICANT

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AND:

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Sri. Ramesh, S/o Sri. Muniyappa, Aged about 61 years, Gaddekannur Village, Tamaka Post, Kolar Taluk, Kolar- 563 101,

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Also at: Sri. Ramesh, S/o Sri. Muniyappa, Aged about 61 years, Esha Kuttera, Gouripet Main Road, Kolar- 563 101.

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Sri. Ravi H L, S/o Sri. Linga Reddy, Aged about 61 years, Gaddekannur Village, Tamaka Post, Kolar Taluk, Kolar- 563 101.

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Sri. M. Nanjundappa, S/o Sri. Muniyappa, Aged Major,

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OA 1770/2023

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Gaddekannur Village, Tamaka Post, Kolar Taluk, Kolar- 563 101.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M. Anitha 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. 23,19,627/- (Rupees Twenty Three Lakh Nineteen Thousand Six Hundred and Twenty Seven 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 defendant No.1 & 2 availed KCC Term loan facility of Rs. 2.4 lakhs. The defendants Nos. 1 & 3 availed Kisan OD facility of Rs. 3 lakhs.

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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 documents along with memorandum of agreement for agricultural loans, letter of revival and acknowledgement of security/ liability from the mortgagers.

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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

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OA 1770/2023

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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 exparte on 07.01.2025.

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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-3 to A-25 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

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unrebutted as defendants remained exparte. The evidence tendered

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OA 1770/2023

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by the applicant remains uncontroverted and undisputed. The

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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 defendants and the claim of the amount

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due are 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 findings arrived herein above, the 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 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 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.1770/2023, stands allowed,

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

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Rs. 23,19,627/- (Rupees Twenty Three Lakh Nineteen Thousand Six

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Hundred and Twenty Seven Only) with further interest @6.00 % p.a.(simple) which consists of:-

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a) Rs. 6,34,199/- (Rupees Six Lakh Thirty-Four Thousand One

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OA 1770/2023

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Hundred and Ninety-Nine Only) from the date of filing OA till the realization, from the defendant Nos. 1 & 2 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.

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b) Rs.16,85,428/- (Rupees Sixteen Lakh Eighty-Five Thousand Four

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Hundred and Twenty Eight Only) from the date of filing OA till the realization, from the defendant Nos. 1 & 3 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.

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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 & personally and their assets are liable for respective amounts due under the respective loan accounts.

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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 receipt of the order.

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

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OA 1770/2023

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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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14. 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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of August, 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: J Venkateshappa S/o Jayaramaiah, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Common Application from dated 02.09.2010
A2	Co-obligant letter dated 02.09.2010
A3	Loan sanction covering letter dated 02.09.2010
A4	Memorandum of agreement for agriculture loans dated 02.09.2010
A5	Letter of revival dated 16.08.2013
A6	Letter of revival dated 25.11.2015
A7	Letter of revival dated 24.11.2017

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OA 1770/2023

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A8	Letter of revival dated 15.07.2020
A9	Acknowledgement of security/ liability from mortgagers dated 13.07.2020
A10	Application cum appraisal from for Kisan OD limits dated 08.10.2010
A11	Co-obligant letter dated 08.10.2010
A12	Loan sanction conveying letter dated 08.10.2010
A13	Agreement and deed of kisan OD dated 08.10.2010
A14	Letter of revival dated 21.05.2013
A15	Letter of revival dated 21.05.2015
A16	Letter of revival dated 10.08.2017
A17	Letter of revival dated 16.05.2020
A18	Letter of revival dated 10.06.2023
A19	Acknowledgement of security/ liability from mortgagors dated 20.07.2020
A20 & A21	Legal Notice dated 07.09.2023
A22	Postal receipts dated 09.09.2023
A23	Returned postal status dated 13.09.2023
A24	Statement of account dated 18.10.2023 in loan No. 68415354027515
A25	Statement of account dated 18.10.2023 in loan No. 68415355017514

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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. Ramesh

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Ramesh

Case brief

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What did the court decide?

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