Allowed

Karnataka Gramin Bank v. Gangamma Batra

DRT21 Oct 2025OA/1992/2023

Case brief

AI extract

What is this about?

The DT granted an original application by the bank for issuance of a Recovery Certificate under DBT Act, 1993. The bank proved credit availed, loan defaults, and situs of property via documentary evidence. Defendants appeared ex-parte. The DT allowed the application, reducing interest to 6% p.a. considering agricultural purpose, and authorized recovery from schedule properties and personal assets.

What did the court decide?

Applicant allowed to recover Rs.21,41,889.81 with interest at 6% p.a. (simple) from date of filing till realization from defendants jointly and severally, including schedule properties and personal as

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

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 21^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1992/2023

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BETWEEN:

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Karnataka Grameena Bank Somalapur Branch, Sindhanur Taluk, Raichur District- 584128

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…APPLICANT

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AND:

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Gangamma Batra W/o Laxmipathi R/at: Somlapur Village, Sindanur Taluk, Raichur District-584128

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Bharmappa S/o Earappa R/at: Somlapur Village, Sindanur Taluk, Raichur District-584128

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Sheela Deepak Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act

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OA 1992/2023

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1993 seeking issuance of Recovery Certificate for Rs.21,41,889.81 (Rupees twenty one lakh forty one thousand eight hundred eighty nine and paisa eighty 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 the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs.1,00,000/- (One Lakh Only) and

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II. Kisan OD limit of Rs.3,50,000/- (Rupees three lakh fifty thousand Only)

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with memorandum of agreement, simple mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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OA 1992/2023

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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 26.11.2024.

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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-18 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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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

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OA claim as against the defendant?

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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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OA 1992/2023

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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, creation of mortgage as claimed by

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the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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OA 1992/2023

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In the result, OA.No.1992/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.21,41,889.81 (Rupees twenty one lakh forty one thousand eight hundred eighty nine and paisa eighty one only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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jointly severally and 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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personally and their other assets are liable to be proceeded against for the balance amount.

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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

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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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OA 1992/2023

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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 21^th day of October, 2025].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ramalingeshwar, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	06.05.2010	Common Application form cum appraisal report for credit felicities for agricultural loan
A2	27.04.2010	Form of declaration
A3	06.05.2010	Memorandum of agreement for agricultural loans
A4	04.12.2012	Letter of Revival
A5	12.02.2015	Letter of revival
A6	31.01.2018	Letter of Revival
A7	20.11.2020	Letter of revival
A8	29.05.2023	Legal Notice
A9		Statement of accounts along with interest A/c No.82215354084915 with certificate under Bankers book of evidence act 1891
A10	06.05.2010	Application cum appraisal form for kisan OD limits

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OA 1992/2023

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A11	09.06.2010	Simple mortgage deed for KCC/OD felicity to
		agriculturalists
A12	18.06.2010	Agreement and deed for KISAN OD
A13	30.01.2013	Letter of Revival

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

Karnataka Gramin Bank v. Gangamma Batra

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Gangamma Batra

Case brief

What is this about?

What did the court decide?

What the court decided

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