Allowed

Karnataka Gramin Bank v. Boralinge Gowda Dead by Lrs Smt Sharadamma

DRT26 Sept 2025OA/212/2023

Case brief

AI extract

What is this about?

The DRT allowed an OA for issuance of a recovery certificate against deceased borrower's legal representatives. Evidence of loan avitalment, defaults, and security creation was found sufficient to prove the claim.

What did the court decide?

Allowed the Recovery Certificate for the principal amount and interest @6% p.a., directing recovery from the defendants' inherited estate and personal assets.

Karnataka Gramin Bank versus Boralinge Gowda Dead by Lrs Smt… — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 26^th Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.212/2023

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BETWEEN:

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Karnataka Grameena Bank, Periyapatna Branch, Periyapatna Taluk, Mysore District. Karnataka State- 571107 Represented by its Branch Manager.

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…APPLICANT

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AND:

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Late H.S. Boralinge Gowda, Dead by LRs.

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1(a) Smt. Sharadamma, W/o. Late Sri. H.S. Boralinge Gowda, Aged about: 62 years, R/at 1-C, K. Hosahalli, Periyapatana Taluk, Mysore District- 571102.

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1(b) Sri. Gururaj H.B. S/o Late Sri. H.S. Boralinge Gowda, Aged about: 47 years, 1-C, K. Hosahalli, Periyapatna Taluk, Mysore District- 571102.

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1(c) Smt. H.B. Mamtha, D/o Late Sri. H.S. Boralinge Gowda, Aged about: 39 years, 1-C, K. Hosahalli, Periyapatna Taluk,

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OA 212/2023

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Mysore District- 571102.

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Sri. Gururaju H.B. S/o Late Sri H.S. Boralinge Gowda, Aged about: 47 years, 1-C, K. Hosahalli, Periyapatna Taluk, Mysore District- 571102.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : G. Lokesh Murthy Defendants 1(a) to 1(c) & 2 : Exparte

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FINAL ORDER

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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 defendants for Rs. 35,47,924/- (Rupees Thirty Five Lakh Forty Seven Thousand Nine Hundred Twenty Four Only) with further interest thereon from the date of filing the Application till realization.

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The borrower H.S. Bora Lingegowda is reported deceased, hence represented by his LRs Defendant No. 1(a) to 1(c). Defendant No. 1(b) and defendant No.2 is the same person.

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It is the case of the applicant that the deceased borrower availed the

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following loans from the applicant bank:-

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Crop loan in the form of kissan credit card scheme of Rs. 7.5 lakhs,

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Kisan gold card scheme of Rs. 6.00 lakhs,

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For the above mentioned 2 loans the deceased borrower along with

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OA 212/2023

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defendant No. 2 and defendant No. 1(c) created EQM by deposit of title deed.

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Personal loan of Rs. 75,000/- (Rupees Seventy Five Thousand Only)- defendant No.2 stood as a guarantor. The deceased borrower and defendant No.2 has executed the DPN.

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Tobacco fuel loan of Rs. 50,000/- (Rupees Fifty Thousand Only). The deceased borrower and defendant No.2 has executed the DPN.

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Tobacco Barn repair loan of Rs. 75,000/- (Rupees Seventy Five Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the deceased borrower and defendant No.2 executed necessary loan documents along with Simple mortgage deed, revival letters, pronote and DPN.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrower 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

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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The applicant had let in evidence through AW-1, who filed Proof

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OA 212/2023

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-40 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 exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove

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availment of credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount

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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, the Tribunal find

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OA 212/2023

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

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view that OA is liable 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 in view of the OA

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

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In the result, OA.No.212/2023, stands allowed,

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

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35,47,924/- (Rupees Thirty Five Lakh Forty Seven Thousand Nine Hundred Twenty Four Only) with further interest @6.00 % p.a.(simple) which consists of:-

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a) Rs. 19,07,389/- (Rupees Nineteen Lakh Seven Thousand Three Hundred Eighty Nine Only) in respect of KCC loan from the date of filing OA till realization, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recovery the same by proceeding against the schedule property.

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b) Rs. 12,61,267/- (Rupees Twelve Lakh Sixty One Thousand Two

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Hundred and Sixty Seven Only) in respect of agri- term loan- GCL from the date of filing OA till realization, after giving credit to all the amounts

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recovered and received during the pendency of the OA and allowed to recovery the same by proceeding against the schedule property.

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OA 212/2023

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Shortfall any, the defendants 1(a) to 1(c) to be proceeded against to the

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extent of estate inherited by them from the deceased borrower.

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

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c) Rs. 1,64,221/- (Rupees One Lakh Sixty Four Thousand Two Hundred and Twenty One Only) in respect of agri. Personal loan from the date of filing OA till the realization, from the defendant No.2 personally after

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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 No.2 personally and his assets.

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d) Rs. 68,962/- (Rupees Sixty Eight Lakh Nine Hundred and Sixty Two

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Only) in respect of Agri fuel loan from the date of filing OA till the realization, from the defendant No.2 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 No.2 personally and his assets.

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e) Rs. 1,46,085/- (Rupees One Lakh Forty Six Thousand Eighty Five Only)

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in respect of Barn repair loan from the date of filing OA till the realization, after giving credit to all the amounts recovered and received during the pendency of the OA.

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ii) 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

OA 212/2023

order.

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

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transferred to Recovery for execution.

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

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Final Order.

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

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 26^th Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravindra B K S/o Basappa N. K, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Original KCC loan application dated 27.03.2015
A2	Original KCC loan sanction letter dated 27.03.2015
A3	Original mortgage deed loan agreement for KCC loan dated 27.03.2015
A4	Original simple mortgage deed dated 27.03.2015
A5 to A7	Original acknowledgement of liability dated 20.03.2018, letter of revival dated 09.06.2020, 28.09.2021
A8	Original gold card loan application dated 27.03.2015
A9	Original gold card loan sanction letter dated 27.03.2015
A10	Original mortgage deed agreement dated 27.03.2015

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OA 212/2023

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A11 to A13	Original acknowledgement of liability dated 12.02.2018, letter of revival dated 09.06.2020, 28.09.2021
A14	Original personal loan application dated 27.03.2015
A15	Original personal loan sanction letter with terms and conditions dated 27.03.2015
A16 to A18	Original pronote, DPN delivery letter dated 27.03.2015, per loan agreement dated 27.03.2015, guarantee agreement dated 27.03.2021
A19 to A21	Original acknowledgement of liability dated 12.02.2018, and letter of revival dated 09.06.2020, 28.03.2021
A22	Original fuel loan application dated 27.03.2015
A23	Original fuel loan sanction terms and conditions dated 27.03.2015
A24	Original on demand promissory note and delivery letter to promissory note dated 27.03.2015
A25 to A27	Original acknowledgement of liability dated 12.01.2018, letter of revival dated 09.06.2020, 28.03.2021
A28	Original barn repair loan application dated 27.03.2015
A29	Original barn repair loan sanction letter dated 27.03.2015
A30	Original mortgage deed loan agreement dated 27.03.2015
A31 to A33	Original acknowledgement of liability dated 12.02.2018, letter of revival dated 09.06.2020, letter of revival by legal heirs dated 28.03.2021
A34 & A35	Office copy of legal notice dated 31.01.2022 with copy of RPAD acknowledgement card
A36 to A40	True extract of five statement of loan accounts

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Boralinge Gowda Dead by Lrs Smt Sharadamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Boralinge Gowda Dead by Lrs Smt Sharadamma

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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