Allowed

Karnataka Gramin Bank v. Shivakumar

DRT28 Oct 2025OA/236/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by Karnataka Grameena Bank under Section 19 of the RDB Act for issuance of a recovery certificate. The defendant being ex parte, the claim of defaulted agricultural loan was established. The Tribunal granted the claim reduced interest at 6% p.a. against the defendant and schedule properties.

What did the court decide?

Recovery certificate issued for Rs.35,29,154/- plus interest @6% p.a. (simple) against defendant and schedule property; costs awarded.

Karnataka Gramin Bank versus Shivakumar — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.236/2024.

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Revoor (B) Branch, Afazalpur Tq, Kalaburagi- 585301 …APPLICANT

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AND:

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Sri. Shiva Kumar S/o. Sidaramappa Mulage R/at: Ankalaga Village, Afzalpur Taluk, Kalaburgi District- 585301

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sheela Deepak Defendants : 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 for Rs.35,29,154.52 (Rupees thirty five lakh twenty nine thousand

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one hundred fifty four and paisa fifty two only) with further

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OA 236-2024

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interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the Agricultural loan limit of Rs.5,00,000/- (Rupees five lakh only) from the applicant bank for purchase of tractor.

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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 sanction memorandum, mortgage deed and letter of revival in favor of the applicant bank.

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It is further contended that, the defendant 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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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 defendant, he failed to appear, resulting the defendant being set exparte on 22.08.2024.

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OA 236-2024

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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-16 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 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 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 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 credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and

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OA 236-2024

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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 Tribunal find both these issues in favour of applicant and hence 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 defendant for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.236/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.35,29,154/- (Rupees thirty five lakh twenty nine

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thousand one hundred fifty four only) with further interest @6% p.a. (Simple),

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

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personally after giving credit to all the amount recovered and

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OA 236-2024

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received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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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 defendant

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personally and his other assets are liable to be proceeded against

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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

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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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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 28^th day of October, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

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OA 236-2024

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Gumulla Ramprasad, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	09.01.2007	Application for tractor loan
A2	18.01.2007	Sanction memorandum for advances
A3	31.01.2007	Loan agreement
A4	31.07.2007	Mortgage deed
A5	31.01.2007	Letter of guarantee
A6	27.11.2009	Revival letter
A7	27.11.2009	Revival letter
A8	08.10.2012	Revival letter
A9	08.10.2012	Revival letter
A10	23.05.2015	Revival letter
A11	22.05.2015	Revival letter
A12	15.02.2021	Revival letter
A13	13.08.2007	RC along with insurance copy of tractor
A14	13.08.2007	RC along with insurance copy of tractor
A15	21.11.2022	Legal notice
A16		Statement of account along with interest A/c No.00215326018107 with certificate under Bakers book of evidence act 1891.

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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) PRESIDING OFFICER

Karnataka Gramin Bank v. Shivakumar

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Shivakumar

Case brief

What is this about?

What did the court decide?

What the court decided

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