Allowed

Karnataka Gramin Bank v. Mahadevamma and Ors.

DRT28 Nov 2025OA/235/2024

Case brief

AI extract

What is this about?

The court allowed an Original Application for issuance of a Recovery Certificate against defendants who were absent. Evidence established loan defaults, establishing the debt was provable and within limitation. The court ordered recovery with interest reduced to 6% due to agricultural purpose.

What did the court decide?

Issuance of Recovery Certificate for Rs. 39,32,617.54 plus 6% simple interest until realization, recoverable jointly, severally and personally from defendants and against schedule properties.

Karnataka Gramin Bank versus Mahadevamma 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 Presiding Officer OA.No.235/2024

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BETWEEN:

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Karnataka Grameena Bank Having its head office at: Gandhi nagara, Bellary – 583 103 Branch office at: Chiklaparvi – 584 123, Manvi Taluk, Raichur district

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Represented by its Branch Manager

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Pavan Kumar K …APPLICANT

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AND:

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Smt. Mahadevamma W/o. Sri. Veeranna Gowda Aged about 83 years R/o. 2/144, Madlapur, Manvi, Raichur – 584 123

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Sri. Shivakumar S/o. Sri. Narasappa Aged about 46 years Madlapur, Manvi, Raichur – 584 123

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Sri. Yankanna S/o. Sri Hanumanthappa Major R/O. Madlapur, Manvi Raichur – 584 123 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M & R Consult Defendants : Ex parte

OA-235/2024

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. 39,32,617.54/- (Rupees Thirty Nine Lakhs Thirty Two Thousand Six Hundred and Seventeen and Paisa Fifty Four 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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Kisan credit card of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand Only) for the purpose of cultivation of crops.

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Minor Irrigation loan Rs. 5,00,000/- (Rupees Five Lakhs Only) for the purpose of laying pipelines and land leveling.

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1. It is also the case of the applicant that, in view of the above

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availed loans, the defendants executed the necessary loan documents along with simple mortgage deed and deed of hypothecation.

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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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Despite, service of summons on the defendants, they failed to

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OA-235/2024

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appear, resulting the defendants being set ex parte on 22.08.2024.

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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-26 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

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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 applicant is well within the limitation.

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OA-235/2024

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

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In the result, OA.No.235/2024 stands allowed,

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

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Rs 39,32,617.54/- (Rupees Thirty Nine Lakhs Thirty Two Thousand Six Hundred and Seventeen and Paisa Fifty Four Only)

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a. Rs. 8,38,450.54/- (Rupees Eight Lakhs Thirty Right Thousand Four

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Hundred and Fifty and Paisa Fifty Four Only) under KCC loan with further interest @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. 30,94,167/- (Rupees Thirty Lakhs Ninety Four Thousand One

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Hundred and Sixty Seven Only) under minor irrigation loan 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

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the pendency of the OA and allowed the same to be recovered by

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OA-235/2024

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proceeding against defendants jointly, severally and personally and

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also by proceeding against schedule property. Properties schedule to

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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 defendant jointly,

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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

OA-235/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Pavan Kumar K, S/o. Raghavendra Rao Kulkarni, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Copy of the loan application dated 16.03.2007
A2	Copy of the sanction memorandum dated 16.03.2007
A3	Copy of the memorandum of agreement for agricultural loans dated 17.03.2007
A4	Copy of the simple mortgage deed for KCC/OD facility to agriculturist dated 16.03.2007
A5	Copy of the letter of revival dated 26.10.2009
A6	Copy of the letter of revival dated 24.10.2011
A7	Copy of the letter of revival dated 30.04.2014
A8	Copy of the letter of revival dated 02.11.2016
A9	Copy of the letter of revival dated 18.10.2019
A10	Copy of the letter of revival dated 18.10.2019
A11	Copy of the letter of revival dated 19.05.2022
A12	Copy of the loan application dated 09.04.2009
A13	Copy of the sanction memorandum dated 09.05.2009
A14	Copy of the memorandum of agreement for agricultural loans dated 15.05.2009
A15	Copy of the agreement-cum-deed of hypothecation for agricultural loans dated 15.05.2009
A16	Copy of the pronote dated 15.05.2009
A17	Copy of the simple mortgage deed dated 14.05.2009
A18	Copy of the letter of revival dated 24.10.2011
A19	Copy of the letter of revival dated 24.10.20211
A20	Copy of the letter of revival dated 26.03.2014

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OA-235/2024

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A21	Copy of the letter of revival dated 02.11.2016
A22	Copy of the letter of revival dated 29.11.2018
A23	Copy of the letter of revival dated 09.07.2021
A24	Copy of the legal notice dated 09.01.2023
A25	Copy of the statement of account certified under banker’s nook of evidence act in respect of loan account no. 57615354006912
A26	Copy of the statement of account certified under banker’s nook of evidence act in respect of loan account no. 57615330001509

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Mahadevamma and Ors.

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Mahadevamma and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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