Allowed

Karnataka Gramin Bank v. a Subbareddy and Others

DRT12 Nov 2025OA/1852/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application for a Recovery Certificate against defaulting borrowers and their legal heirs. Due to the agricultural nature of the loans, interest was reduced to 6.00% simple. The order directs recovery from the schedule property and legal heirs.

What did the court decide?

Recovery Certificate issued for Rs. 25,01,001/- with 6.00% simple interest, to be recovered from schedule property and legal heirs.

Karnataka Gramin Bank versus a Subbareddy and Others — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1852/2024

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BETWEEN:

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Karnataka Grameena Bank Having a Branch at: Valaballari, Sindhanur Taluk, Raichur District – 584 128

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Represented by its Branch Manager, Sri. Amaresha …APPLICANT

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AND:

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Sri. A Subbareddy S/o. Pichireddy

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Aged about 64 years R/o. Venkateshwara Camp, Post Gonwar, Sindhanur Taluk, Raichur District – 584 143

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Smt. Hampamma W/o. late Veereshayya Aged about 64 years R/o. Chitrali Village, Sindhanur Taluk, Raichur District – 584 143

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D Suresha S/o. Mallappa Aged about 47 years R/o. Chintamanadoddi, Sindhanur Taluk,

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Raichur District – 584 128 ...DEFENDANTS

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OA. No. 1852/2024

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Counsel on record/appeared for:

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Applicant : M Anitha Defendants : Ex parte

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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 for seeking issuance of Recovery Certificate against the defendants for Rs. 25,01,001/- (Rupees Twenty Five Lakhs One Thousand and One 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 defendants availed of following credit facilities:

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The defendant no.1 & defendant no.2 is the legal heir of the

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deceased co-borrower. The late Veereshayya availed an KCCs/PKSCC loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose agriculture development.

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The defendant no.1 & 3 availed an Kisan OD loan of Rs.

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5,00,000/- (Rupees Five Lakhs Only) for purpose of growing crops.

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The deceased borrower executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Veereshayya had also executed Simple Mortgage Deed dated 20.05.2013.

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It is further contended that, despite availing the credit facilities,

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OA. No. 1852/2024

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agreeing to service the loan account promptly and regularly, the defendants 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 as against the defendants.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 03.07.2025.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A27 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 OA claim as against the defendants?

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ii) What orders 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 by

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OA. No. 1852/2024

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount 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 above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be

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allowed.

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Taking into consideration the facts that the credit facilities are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1852/2024 stands allowed,

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

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25,01,001/- (rupees twenty five lakhs one thousand and one only) consisting of;

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a) Rs. 8,96,036/- (Rupees Eight Lakhs Ninety Six Thousand and Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of

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OA. No. 1852/2024

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filing OA till the realization, from the defendant no.1 and defendant no.2

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is the legal heir to the deceased Veereshayya.

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b) Rs. 16,04,965/- (Rupees Sixteen Lakhs Four Thousand Nine Hundred

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and Sixty Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1 and defendant no.3.

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After giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the liability, the defendants to the extent of their inherited form the deceased Veereshayya is liable to the proceeds against for the balance amount.

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iii) The applicant bank is allowed cost of the proceeding 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 transferred to Recovery for execution.

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V) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No. 1852/2024

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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 (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 12^th Day of November, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Amaresha, S/o. Mahadevappa, Branch Manager of the

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applicant bank.

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Annexure	Particulars
A1	Application form cum appraisal report for KCCs/PKSCC dated 02.05.2013
A2	Loan sanction conveying letter dated 20.05.2013
A3	Memorandum of agreement for agricultural loans dated 20.05.2013
A4	Simple mortgage deed for KCC/OD facility to agriculturists dated 20.05.2013
A5	Letter of revival dated 06.04.2016
A6	Letter of revival dated 06.04.2016
A7	Letter of revival dated 06.04.2019
A8	Letter of revival dated 06.04.2019
A9	Letter of revival dated 12.01.2022
A10	LOR of legal heirs of deceased borrowers dated 12.01.2022

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OA. No. 1852/2024

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A11	Application-cum-appraisal form for Kisan OD limits dated 05.07.2013
A12	Kisan OD sanction memorandum dated 24.07.2013
A13	Loan sanction conveyingletter dated 03.08.2013
A14	Agreement and deed for Kisan OD dated 03.08.2013
A15	Simple mortgage deed for KCC/OD facility to agriculturists dated 01.08.2013
A16	Application-cum-sanction for renewal and /or enhancement under Kisan OD dated 19.03.2015
A17	Letter of revival dated 04.07.2016
A18	Letter of revival dated 25.06.2019
A19	Letter of revival dated 25.06.2019
A20	Letter of revival dated 20.06.2022
A21	Letter of revival dated 20.06.2022
A22	Legal notice dated 06.01.2024
A23	Postal receipts
A24	Legal notice dated 06.01.2024
A25	Postal receipts
A26	Statement of accounts in loan no. 85415354014216
A27	Statement of accounts in loan no. 85415355018216

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Exhibits on the part of the Applicant:

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. a Subbareddy and Others

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. a Subbareddy and Others

Case brief

What is this about?

What did the court decide?

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Issues for consideration

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