Allowed

Karnataka Gramin Bank v. Madesh

DRT30 Oct 2025OA/1991/2023

Case brief

AI extract

What is this about?

In an ex-parte debt recovery proceeding, the Tribunal found the claim well-proved due to lack of rebuttal. The OA was allowed with a reduced interest rate of 8% simple, granting a recovery certificate against the defendant and hypothecated assets.

What did the court decide?

Recovery Certificate allowed for Rs. 39,40,338.56 plus 8% simple interest from filing date; cost awarded; RC to be drawn and transferred for execution.

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

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 30^th Day of October, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1991/2023

¶5

BETWEEN:

¶6

Karnataka Gramin Bank, A branch office at KGF, M V Nagar- 585310, Bangarpet Taluk, Kolar District, Represented by Sri Santhosh Y Kaggod.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Madesh M S/o Muniyappa, Aged about 71 years, R/at. No. 79, D K Halli Village & Post, Bangarapet Taluk- 563162.

¶10

...DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : M/s. J N Legal Defendant : Exparte

¶13

FINAL ORDER

¶14

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 defendant for Rs. 39,40,338.56 (Rupees Thirty Nine Lakh Forty Thousand Three Hundred Thirty Eight and Paise Fifty Six Only) with further interest thereon from the date of filing the Application till realization.

¶15

OA 1991/2023

¶16

¶17

It is the case of the applicant that, the defendant availed the Machinery loan of Rs. 23,75,000/- (Rupees Twenty-Nine Lakh Seventy Five Thousand Only).

¶18

It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with agreement cum deed of hypothecation and letter of revival.

¶19

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶20

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.

¶21

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 26.11.2024.

¶22

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-10 and got the same marked in evidence.

¶23

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.

¶24

OA 1991/2023

¶25

¶26

The following issues arise for consideration in this matter:

¶27

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

¶28

ii) What order are to be passed?

¶29

Both these issues are gone into and decided together.

¶30

The case put forth by the applicant in the Application remains unrebutted as defendant 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 the credit facilities as stated in the OA, creation of hypothecation as claimed by the applicant bank and the defaults committed in the accounts. 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.

¶31

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

¶32

find both these issues in favour of applicant and hence, this Tribunal is of

¶33

the view that OA is to be allowed.

¶34

Taking into consideration the facts that the credit facilities are

¶35

OA 1991/2023

¶36

¶37

availed for Commercial purpose and also that OA claim is arrived at by

¶38

calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

¶39

In the result, OA.No.1991/2023, stands allowed,

¶40

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

¶41

39,40,338.56 (Rupees Thirty Nine Lakh Forty Thousand Three Hundred

¶42

Thirty Eight and Paise Fifty Six Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the defendant personally and his assets including

¶43

the hypothecated assets. Schedule to the OA be the schedule to the recovery certificate.

¶44

ii) The applicant bank is allowed cost of the proceedings which

¶45

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

¶46

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

¶47

transferred to Recovery for execution.

¶48

iv) Interim application pending, if any, are disposed of with this Final Order.

¶49

Communicate a copy of the order to the parties concerned in terms

¶50

OA 1991/2023

¶51

¶52

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

¶53

Rules, 1993.

¶54

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the

¶55

Open Court, this the 30^th day of October, 2025].

Sd/- (T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶60

AW-1: Santhosh Y Kaggod S/o Yellappa, Manager, of Applicant Bank.

¶61

Exhibits on the part of the Applicant:

¶62

Exhibit Nos.	Particulars of Documents
A1	Copy of the application cum appraisal report for SSI dated 11.07.2016
A2	Copy of the loan sanction conveying letter dated 08.08.2016
A3	Copy of the pronote and take delivery letter to DPN dated 08.08.2016
A4	Copy of the deed of hypothecation re:machinery dated 08.08.2016
A5	Copy of the agreement cum deed of hypothecation dated 08.08.2016
A6	Copy of the letter of revival dated 15.10.2018
A7	Copy of the letter of revival dated 05.11.2020
A8	Copy of the letter of revival dated 18.01.2023
A9	Copy of the legal notice dated 22.05.2023
A10	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under account No. 87615115047916

¶63

Witness Examined for the Defendant:

¶64

-Nil -

¶65

List of Documents Exhibited for the Defendant:

¶66

-Nil -

¶67

Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Madesh

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Madesh

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

All orders in this case

Similar cases

Indian Overseas Bank versus Kamaljit Singh

Ms General Trading Company versus Jammu and Kashmir Bank Limited

Punjab National Bank versus Piara Singh

Ms R S Belvedere versus the Kangra Central Cooperative Bank Limited

Ms Parwati Vehicles Pvt. Ltd. and others versus Bank of Baroda

Standard Chartered Bank versus M/s Nanma Marketing Pvt. Ltd.