Allowed

Karnataka Gramin Bank v. Shanthamma

DRT30 Oct 2025OA/1777/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Karnataka Gramina Bank to obtain a Recovery Certificate for approximately Rs. 73 lakh, allowing reduced interest at 6% p.a., against legal heirs and co-borrowers who failed to appear. A Recovery Certificate was directed.

What did the court decide?

Recovery Certificate issued for Rs. 73,08,966. Interest fixed at 6% p.a. (Simple). Defendants No. 7 & 8 jointly liable; others liable to extent of inherited estate.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1777/2023

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BETWEEN:

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Karnataka Gramina Bank

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Branch office at:

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Sindhanur Branch, Opposite to BSNL office, Sindhanur Town, Sindhanur Taluk, Raichur District, Karnataka

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…APPLICANT

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AND:

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Smt. Shanthamma W/o Late Sri Basana Gouda

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Sri Sharanappa S/o Late Sri. Basana Gouda

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Sri. Shekarappa S/o Late Sri. Basana Gouda

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Sri. Shankargouda S/o. Late Sri. Basana Gouda

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Sri. Devaraja S/o. late Sri. Basana Gouda

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Sri. Anand Gouda S/o Late Sri. Basana Gouda

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Sri. Amaresh Malipatil S/o Sri. Karibasappa

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OA 1777-2023

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Sri. Chandrashekar Gouda S/o Late Sri. Basana Gouda

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All are R/at: Virupapur Village, Sindhanur Taluk, Raichur District-584128 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : N.G, Ravikumar 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 for Rs.73,08,966/- (Rupees seventy three lakh eight thousand nine hundred sixty six 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 Basana Gouda was the deceased borrower and defendants No.1 to 6 are his legal heirs and defendants No.7 & 8 as co-borrowers/guarantors availed the following credit facilities from the applicant bank:-

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I. KOD Loan of a sum of Rs.2,25,000/- (Rupees two lakh twenty five thousand Only),

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II. KCC loan limit of Rs.1,78,000/- (Rupees one lakh seventy

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OA 1777-2023

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eight thousand Only), and

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III. AGDL Loan limit of Rs.12,70,000/- (Rupees twelve lakh seventy thousand Only) from which defendat No.3, 7 & 8 are liable.

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It is also the case of the applicant that, in view of the above

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amount financed, the defendant executed necessary loan documents along with agreement deed, memorandum of agreement and letters of revival in favor of the applicant bank.

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It is further contended that, the defendant 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

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failed to appear, resulting the defendants being set exparte on 29.07.2024.

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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

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OA 1777-2023

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also produced Exhibits A-1 to A-57 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 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 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 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 mortgage as claimed by

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the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim as the amount due

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is also proved by the above documents. The claim of the

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OA 1777-2023

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applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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 for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this 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.1777/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.73,08,966/- (Rupees seventy three lakh eight

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thousand nine hundred sixty six only) with further interest @ 11.80% p.a. (Simple),

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

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No.7 & 8 jointly severally and personally after giving credit to

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all the amount recovered and received during the pendency of

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the OA and allowed the same to be recovered by proceedings

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against the schedule property. Properties schedule to the OA be

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OA 1777-2023

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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.7 & 8 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) Being the legal heirs, the defendants No.1 to 6 are

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liable to the extent of estate inherited from the deceased Basana Gouda.

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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 30^th day of October, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1777-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Satish. R, Authorized officer and Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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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. Shanthamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Shanthamma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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