Allowed

Karnataka Gramin Bank v. Devappa Upar and Ors.

DRT28 Nov 2025OA/199/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application for a recovery certificate issued in admirum of the defendants' default on agricultural and housing loans, granting relief with reduced interest rates despite the defendants' absence.

What did the court decide?

Recovery certificate issued for Rs. 44,98,666/- with reduced interest @6% and @8% p.a.; defendants jointly, severally and personally liable.

Karnataka Gramin Bank versus Devappa Upar and Ors. — 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 28^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.199/2024

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BETWEEN:

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Karnataka Grameena Bank Head office at: Gandhinagar, Bellary – 583 103 Branch Office At: Harapur Village, Sindhanur Tq. – 584 128, Raichur District.

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Represented by its Manager and Principal Officer In-Charge Chaluvadi Veeresh …APPLICANT

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AND:

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Sri. Devappa Upar S/o. Sri. Sanna Thimmappa Aged about 60 years R/o. U Hanchinal Camp, Post Hampanal, Maski Taluk, Raichur District – 584 128

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Sri. Nagappa Upar S/o. Sri Mariyappa Uppar Major R/o. Elekudlagi, Basapur Camp, Harapur Post, Sindhanur Taluk, Raichur District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T P Muthanna Defendants : Ex parte

OA-199/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 31,44,081/- (Rupees Thirty One Lakhs Forty Four Thousand and Eighty One 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 defendants are availed the following credit facilities:

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AGDL loan of Rs. 9,00,000/- (Rupees Nine Lakhs Only) for the purpose of construction of rural godown.

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KCCS of Rs. 1,73,000/- (Rupees One Lakh Seventy Three Only) for the purpose of crop production.

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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 document along with simple mortgage deed.

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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 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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OA-199/2024

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 06.01.2025.

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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-1 to A-19 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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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 unrebutted as defendants remained ex parte. 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 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 document. The claim of the

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OA-199/2024

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applicant is well within the limitation.

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

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find both these issues are 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 and housing 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% & 8.00%(simple).

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In the result, OA.No.199/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 44,98,666/- (Rupees Forty Four Lakhs Ninety Eight Thousand Six Hundred and Sixty Six Only) with further interest @6.00 % p.a.& 8.00% p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, 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 the schedule properties. 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

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OA-199/2024

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jointly, severally and personally and their assets are liable for all such

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amounts due under the 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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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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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 (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of November, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mallayya, S/o. Lingappa, Branch Manager, of Applicant Bank.

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OA-199/2024

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Copy of the application for housing loans dated 10.11.2012
A2	Copy of the AGDL sanction memorandum dated 26.12.2012
A3	Copy of the memorandum of agreement od r agricultural loans dated 08.01.2013
A4	Copy of the simple mortgage deed dated 04.01.2013
A5	Copy of the letter of revival dated 02.01.2016
A6	Copy of the letter of revival dated 29.12.2018
A7	Copy of the letter of revival dated 07.12.2021
A8	Copy of the application form cum appraisal report for KCCS/PKSCC dated 10.11.2012
A9	Copy of the crop loan sanction memorandum dated 01.01.2013
A10	Copy of the agreement-cum-deed of hypothecation for agricultural loans dated 07.01.2013
A11	Copy of the simple mortgage deed for KCC/OD facility to agriculturists dated 04.01.2013
A12	Copy of the letter of revival dated 02.01.2016
A13	Copy of the letter of revival dated 29.10.2018
A14	Copy of the letter of revival dated 01.07.2021
A15	Copy of the letter of revival dated 01.07.2021
A16	Copy of the legal notice dated 10.11.2022 in respect of loan account no. 62915313000713
A17	Copy of the legal notice dated 29.08.2023 in respect of loan account no. 62915354005317
A18	Copy of statement of account certified under banker’s book of evidence act in respect of loan account no. 62915313000713
A19 Witness	Copy of statement of account certified under banker’s book of evidence act in respect of loan account no. 62915354005317 Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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7 OA-199/2024

Karnataka Gramin Bank v. Devappa Upar and Ors.

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Devappa Upar and Ors.

Case brief

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What did the court decide?

What the court decided

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