Allowed

Karnataka Gramin Bank v. Ramana Gouda

DRT29 Aug 2025OA/1848/2023

Case brief

AI extract

What is this about?

The DRT allowed a recovery certificate application filed by a bank against two defendants who failed to appear. The court awarded a reduced simple interest rate of 6% due to agricultural use of funds and granted recovery of the principal amount jointly and severally.

What did the court decide?

Recovery Certificate issued for Rs. 50,29,031.94 @ 6% simple interest; defendants liable jointly and severally; sale proceeds sufficient to cover dues.

Karnataka Gramin Bank versus Ramana Gouda — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 29^th Day of August, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1848/2023

¶5

BETWEEN:

¶6

Karnataka Grameena Bank, Sirwar Branch, 1^st Floor, Shivani Complex, Main Road, near Deodurga Cross, Sirwar Taluk, Raichur District, Karnataka 584 129, Represented by its Senior manager, Mr. Yogesh Kumar Pandey, S/o Narendra Pandey, Aged about 34 years.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Ramana Gouda, S/o Sri. Virupakshappa, Aged about 55 years, R/a. MIGH-14, Nijalingappa Colony, Near Dr. Abhishek Patil House, Raichur District- 584 101.

¶10

Sri Shivalingayya Alias Shivalingappa, S/o Sri. Amarappa Alias Amarayya, R/a. Sri Annapurneshwari Nilaya, B.B. Patil Colony Tq: Sirwar Sub Dist: Manvi, Raichur District- 584 129. ...DEFENDANTS

¶11

Counsel on record/appeared for:

¶12

Applicant : Prakasha Hedge K Defendants : Exparte

OA 1848/2023

FINAL ORDER

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. 50,29,031.94 (Rupees Fifty Lakh Twenty Nine Thousand Thirty One and Paise Ninety Four Only) with further interest thereon from the date of filing the Application till realization.

¶17

It is the case of the applicant that, the defendant No.1 availed a Farm Mechanization loan of Rs. 3,37,000/- (Rupees Three lakh Thirty Seven Thousand Only), defendant No.1 & 2 availed Kisan Credit card limit of Rs.1,50,000/- (Rupees One Lakh Fifty Thousand Only) and Kisan OD loan of Rs. 3,50,000/- (Rupees Three Lakh Fifty Thousand Only).

¶18

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, agreement and deed for kisan OD, Simple mortgage deed and letters of revival.

¶19

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.

¶20

In the above circumstances, the applicant approached this

¶21

OA 1848/2023

¶22

¶23

Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶24

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 09.10.2025.

¶25

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-41 and got the same marked in evidence.

¶26

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.

¶27

The following issues arise for consideration in this matter:

¶28

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶29

ii) What order are to be passed?

¶30

Both these issues are gone into and decided together.

¶31

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,

¶32

OA 1848/2023

¶33

¶34

creation of the security interest and the defaults committed in the

¶35

accounts. The liability of the defendants and the claim of the amount

¶36

due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶37

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

¶38

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

¶39

Taking into consideration the facts that the credit facilities are

¶40

availed for Agricultural purpose and personal use and also that the OA claim is arrived at by calculating interest at the agreed rate, this

¶41

Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

¶42

In the result, OA.No.1848/2023, stands allowed,

¶43

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

¶44

Rs. 50,29,031.94 (Rupees Fifty Lakh Twenty Nine Thousand Thirty

¶45

One and Paise Ninety Four Only) @ 6.00% (Simple) which consists

¶46

of:-

¶47

a) Rs. 20,83,187.71 (Rupees Twenty lakh Eighty Three Thousand One

¶48

Hundred and Eighty Seven and Paise Seventy one Only) from the

¶49

date of filing OA till the realization, from the defendant No. 1

¶50

OA 1848/2023

¶51

¶52

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.

¶53

b) Rs.6,38,462.75 (Rupees Six Lakh Thirty-Eight Thousand Four

¶54

Hundred and Sixty-Two and Paise Seventy-Five 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.

¶55

c) Rs. 23,07,381.48 (Rupees Twenty-Three Lakh Seven Thousand Three Hundred and Eighty-One and Paise Forty-Eight 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.

¶56

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

¶57

ii) If the sale proceeds are not found sufficient to cover the

¶58

amount due and payable to the applicant bank, the defendants

¶59

OA 1848/2023

¶60

¶61

jointly, severally & personally and their assets are liable for respective

¶62

amounts due under the respective loan accounts.

¶63

iii) The applicant bank is allowed cost of the proceedings

¶64

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶65

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

¶66

and transferred to Recovery for execution.

¶67

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

¶68

terms of this final order.

¶69

Communicate a copy of the order to the parties concerned in

¶70

terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶71

[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].

¶72

Sd/- (T. RAJESH) PRESIDING OFFICER

¶73

ANNEXURES

¶74

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶75

AW-1: Yogesh Kumar Pandey S/o Narendra Pandey, Branch Manager, of Applicant Bank.

¶76

OA 1848/2023

¶77

¶78

Exhibits on the part of the Applicant:

¶79

Exhibit Nos.	Particulars of Documents
A1	Loan application dated 14.05.2007
A2	Sanction memorandum dated 02.06.2007
A3	Memorandum of agreement for agricultural loans dated 12.06.2007
A4	KCC loan application dated 25.08.2007
A5	Crop loans sanction memorandum dated 01.09.2007
A6	Memorandum of agreement for agricultural loans dated 04.09.2007
A7	Application for renewal of the KCC limit 20.03.2009
A8	Application cum appraisal from for kisan OD limits dated 24.06.2008
A9	Kisan OD sanction memorandum dated 17.07.2008
A10	Agreement and Deed of kisan OD dated 22.07.2008
A11	Simple mortgage deed dated 05.06.2007
A12	Simple mortgage deed dated 31.08.2007
A13	Simple mortgage deed dated 31.08.2007
A14	Simple mortgage deed dated 04.07.2008
A15	Simple mortgage deed dated 04.07.2008
A16	Letter of revival dated 01.06.2010
A17	Letter of revival dated 24.05.2013
A18	Letter of revival dated 20.05.2016
A19	Letter of revival dated 02.05.2019
A20	Letter of revival dated 05.03.2022
A21	Letter of revival dated 11.08.2010
A22	Letter of revival dated 19.06.2013
A23	Letter of revival dated 10.05.2016
A24	Letter of revival dated 02.05.2019
A25	Letter of revival dated 02.05.2019
A26	Letter of revival dated 08.02.2022
A27	Letter of revival dated 11.08.2010
A28	Letter of revival dated 05.08.2013
A29	Letter of revival dated 30.07.2016
A30	Letter of revival dated 30.07.2016
A31	Letter of revival dated 29.05.2019
A32	Letter of revival dated 29.05.2019

¶80

OA 1848/2023

¶81

¶82

A33	Letter of revival dated 07.03.2022
A34	Letter of revival dated 07.03.2022
A35	Acknowledgement of security/ liability from mortgagers dated 02.05.2019
A36	Acknowledgement of security/ liability from mortgagors dated 22.03.2019
A37	Statement of loan account No. 2007000004 renumbered as account No. 81915325000407
A38	Statement of account loan account No. 2007000121 renumbered as account No. 10819130000175 and then renumbered as account No. 81915354039212
A39	Statement of account loan account NO. 2008000030 renumbered as A/c No. 10819120000067 renumbered as A/c No. 81915355015913
A40	Legal notice dated 20.09.2023
A41	Postal receipts

¶83

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

¶84

-Nil -

¶85

-Nil -

¶86

Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Ramana Gouda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Ramana Gouda

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

Coram

Case details

Similar cases

Punjab National Bank versus Kavita

Punjab and Sind Bank versus Amit Kumar

Central Bank of India versus M/S Fortress Packaging Pvt. Ltd.

Ms Lanvin Exports versus Canara Bank

Mrs Gayathri S and Another versus Tumkur Grain Merchants Cooperative Bank Limited

K R Nagesh versus Katta Radhakrishnaiah Nagesh