Allowed

Karnataka Gramin Bank v. Sri Agasar Basavaraj

DRT27 Nov 2025OA/1888/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by Karnataka Grameena Bank for recovery certificate. Tribunal reduced interest rate to 6% p.a. considering agricultural nature of loans. Recovery of principal and reduced interest against defendants and schedule property.

What did the court decide?

recovery certificate for Rs. 22,32,951.80 plus 6% p.a. simple interest from the date of filing.

Karnataka Gramin Bank versus Sri Agasar Basavaraj — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^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.1888/2024

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BETWEEN:

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Karnataka Grameena Bank Branch office at Chikalaparvi-584123, Manvi Taluk, Raichur District, Rep. by its Branch Manager and Principal Officer in-charge of the branch, Pavan Kumar K … APPLICANT

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AND:

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Sri. Agsar Basavaraj S/o. Sri. Doddasiddappa Aged about 43 years Rangadal – 584123 Manvi Taluk, Raichur District.

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Sri. Agasar Mareppa S/o. Sri. Yallappa Aged about 46 years Rangadal-584123, Manvi Taluk, Raichur District

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T P Muthanna Defendants : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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OA. No.1888/2024

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.22,32,951.80 (Rupees Twenty Two Lakh Thirty Two Thousand Nine Hundred Fifty One and Eighty Paisa 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 the Irrigation loan of Rs.6,00,000/- for the purpose of pipes and irrigation on 13.06.2014; Crop loan of Rs.4,19,000/- for the purpose of crop cultivation, maintenance of farm assets and Crop loan limit of Rs.4,18,000/- for growing cotton on 02.09.2014.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of hypothecation and mortgage over the Schedule properties.

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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 repayment and consequentially turning the loan account as NPA.

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OA. No.1888/2024

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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 11.07.2025.

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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 A1 to A19 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 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

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remains unrebutted as defendants remained exparte. The

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OA. No.1888/2024

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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 facility 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 allowed.

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Taking into consideration the facts that the credit facilities were availed for agricultural purpose and also that 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%

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p.a.(simple).

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OA. No.1888/2024

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In the result, OA.No.1888/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.22,32,951.80 (Rupees Twenty Two Lakh Thirty Two

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Thousand Nine Hundred Fifty One and Eighty Paisa Only) with further interest of 6.00% p.a.(simple) from the date of filing OA

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till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule properties. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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

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the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA. No.1888/2024

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iv) 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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v) Interim Application pending, if any, stands disposed of

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with 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 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of November 2025].

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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.M Raviteja, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Copy of the application form for agriculture loan dated 12.04.2014
A2	Copy of the loan sanction conveying letter dated 130.6.2014

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OA. No.1888/2024

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A3	Copy of the Pronote and Take Delivery letter to DPN dated 13.06.2014
A4	Copy of the Memorandum of Agreement for Agricultural loans dated 13.06.2014
A5	Copy of the Simple Mortgage Deed dated 11.06.2014
A6	Copy of the Letter of Revival dated 08.03.2017
A7	Copy of the Letter of Revival dated 21.10.2019
A8	Copy of the Letter of Revival dated 21.04.2022
A9	Copy of the application form cum Appraisal Report for PKCC dated 20.08.2014
A10	Copy of the Crop loans- sanction memorandum dated 02.09.2014
A11	Copy of the request for agricultural overdraft facilities/Kisan credit card dated 12.09.2014
A12	Copy of the memorandum of agreement for crop loans dated 12.09.2014
A13	Copy of the simple mortgage deed for KCC/OD facility of the Agriculturists dated 04.09.2014
	Copy of the letter of revival in respect of PKCC
A14	account No.57615354028616 executed by defendant No.1 and 2 dated 06.12.2016
A15	Copy of the letter of revival in respect of PKCC account No.57615354028616 dated 21.10.2019
	Copy of the letter of revival in respect of PKCC
A16	account No.57615354028616 executed by
	defendant No.1 and 2 dated 21.04.2022

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OA. No.1888/2024

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A17	Copy of the legal notice issued to defendant No.1 and 2 dated 09.01.2023
	Copy of the statement of account certified under
A18	Bankers’ Book of Evidence Act in respect of Minor
	Irrigation loan account No.57615320008114
	Copy of the statement of account certified under
A19	Bankers’ Book of Evidence Act in respect of PKCC
	account No.5761534028616

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Agasar Basavaraj

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Agasar Basavaraj

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

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