Allowed

Pragathi Krishna Gramin Bank v. Siddappa

DRT31 Dec 2025OA/2108/2024

Case brief

AI extract

What is this about?

DRT allowed the bank's original application for a recovery certificate against three borrowers. The court proved loan defaults and granted recovery with a reduced interest rate of 6% p.a. simple for agricultural loans.

What did the court decide?

Recovery Certificate issued for aggregate sum of Rs. 27,43,654.57 with interest at 6% p.a. (simple) from filing till realization, recoverable jointly, severally, and personally from respondents and fr

Pragathi Krishna Gramin Bank versus Siddappa — 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 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.2108/2024

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BETWEEN:

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Karnataka Grameena Bank Andola Branch, Jewargi Taluk, Kalaburgai District – 585 303

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Represented by its Branch Manager Sri. Santhosh Kumar …APPLICANT

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AND:

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Sri. Siddappa S/o. Sri. Basappa Pujar Aged about 41 years

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Sri. Sharanagouda S/o. Ramappa Gouda Aged about 40 years

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Sri. Tippanna S/o. Mallikarjun Sugur

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All are r/at: Malla (B) Village, Jewaragi Taluk, Kalburagi District – 585 303 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T S Mahabaleswara Defendants : Ex parte

OA-2108/2024

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. 27,43,654.57/- (Rupees Twenty Seven Lakhs Forty Three Thousand Six Hundred and Fifty Four and Fifty Seven 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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KCC loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose of growing the crops.

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Agricultural term loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for the purpose of IP set and pipe line from Bhīma river and land development.

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Agricultural term loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose of fencing and construction of farm house.

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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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OA-2108/2024

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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 ex parte on 20.03.2025.

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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-25 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 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

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sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the

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OA-2108/2024

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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 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

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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 purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.2108/2024 stands allowed,

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

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Rs 27,43,654.57/- (Rupees Twenty Seven Lakhs Forty Three Thousand Six Hundred and Fifty Four and Fifty Seven Only) consisting:

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a. Rs. 6,61,457.39/- (Rupees Six Lakhs Sixty One Thousand Four

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Hundred and Fifty Seven and Paisa Nine Only) with further interest

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@6.00% p.a.(simple) from the date of filing OA till the realization, from the defendants no. 1 & 2.

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b. Rs. 13,39,433/- (Rupees Thirteen Lakhs Thirty Nine Thousand Four

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Hundred and Thirty Three Only)with further interest @6.00%

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OA-2108/2024

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p.a.(simple) from the date of filing OA till the realization, from the defendants no. 1 & 2.

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c. Rs. 7,42,764.18/- (Rupees Seven Lakhs Forty Two Lakhs Seven Hundred and Sixty Four and Eighteen Only) with further interest @6.00% p.a.(simple) from the date of filing OA till the realization, from the defendants no. 1 & 3.

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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 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 found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their 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 proceedings 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 and transferred to Recovery for execution.

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OA-2108/2024

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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 31^st Day of December, 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 Kumar Harhivardhan, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	02.04.2016	Loan application executed by defendants 1 & 2
A2	05.05.2016	Memorandum of agreement for agricultural loan executed by defendants 1 & 2
A3	02.05.2016	Simple mortgage deed executed by 1^stdefendant
A4	24.09.2018	Letter of revival executed by defendants 1 & 2
A5	20.03.2021	Letter of revival executed by defendants 1 & 2
A6	05.10.2023	Letter of revival executed by defendants 1 & 2

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OA-2108/2024

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A7	19.11.2023	Copy of legal notice
A8	--------	Statement of accounts extract
A9	12.05.2016	Loan application executed by defendants 1 & 2
A10	12.05.2016	Memorandum of agreement for agricultural loan executed by defendants 1 & 2
A11	01.07.2016	Simple mortgage deed executed by 1^stdefendant
A12	25.07.2018	Letter of revival executed by 1^stdefendant
A13	21.12.2020	Letter of revival executed by 1^stdefendant
A14	30.06.2023	Letter of revival executed by 2^nddefendant
A15	28.06.2023	Letter of revival executed by defendant 1 & 2
A16	19.11.2023	Copy of legal notice
A17	--------	Statement of account extract
A18	29.11.2016	Loan application executed by defendants 1 & 3
A19	17.02.2017	Memorandum of agreement for agricultural loan executed by defendants 1 & 3
A20	17.02.2017	Simple mortgage deed executed by 1^stdefendant
A21	08.02.2019	Letter of revival executed by defendants 1 & 3
A22	17.11.2021	Letter of revival executed by 1^stdefendant
A23	17.11.2021	Letter of revival executed by 3^rddefendant
A24	19.11.2023	Copy of legal notice
A25	--------	Statement of accounts extract, certificate and closer balance

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Pragathi Krishna Gramin Bank v. Siddappa

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Siddappa

Case brief

What is this about?

What did the court decide?

What the court decided

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