Allowed

Karnataka Gramin Bank v. Sri Sanna Alamappa

DRT19 Nov 2025OA/261/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Karnataka Gramin Bank for issuance of a Recovery Certificate against defendants for a term loan of Rs. 4.60 lakhs. The Tribunal reduced the interest rate to 6% simple per annum and directed recovery jointly and severally.

What did the court decide?

Allowed recovery of Rs. 27,19,497.00 with interest at 6% p.a. simple; Recovery Certificate to be drawn and transferred for execution against defendants jointly, severally, and personally.

Karnataka Gramin Bank versus Sri Sanna Alamappa — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.261/2024

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BETWEEN:

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Karnataka Gramin Bank, One of its Branches at, Dhadesugar Branch, Dhadesugur- 584167, Sindhanur Taluk, Raichur District- 584101, Rep: By its Branch Manager, Name: Ramanjini B

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…APPLICANT

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AND:

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Sri Sanna Alamappa, S/o Gangappa, Major, R/at No. 134, Kengal Village, Sindhanur Taluk, Raichur District- 584167.

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Sri Dodda Almappa, S/o Gangappa, Aged about 73 years, R/at No. 134, Kengal Village, Sindhanur Taluk, Raichur District- 584167.

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Sri Harijana Hussainappa, S/o Durgappa, Major, Kengal Village, Sindhanur Taluk,

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OA 261/2024

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Raichur District- 584167.

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Sri Hamumesh, S/o Shankarappa Madival, Major, R/at Kengal Village, Sindhanur Taluk, Raichur District- 584167

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : B Prasanna Kumar 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 against the defendants for Rs. 27,19,497.00 (Rupees Twenty Seven Lakh Nineteen Thousand Four Hundred Ninety 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 defendant No.1 & 2 as borrowers and defendant No. 3 co-obligant availed term loan of Rs. 4,60,000/- (Rupees Four Lakh Sixty Thousand Only) for purpose of tractor and trailer.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with registered memorandum of simple mortgage deed and promissory note.

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It is further contended that, despite availing the credit facilities,

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OA 261/2024

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agreeing to service the loan account 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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Defendant No. 1 & 2 executed registered sale deed in favour of defendant No.4. Hence defendant No. 4 is made party to the proceedings, hence, the sale deed executed in favour of 4^th defendant is not binding on the applicant bank. Hence the applicant bank is not claiming any relief against the defendant No.4.

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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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Despite, summons on defendants, they failed to appear resulting the defendants being set exparte on 24.10.2024.

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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 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

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OA 261/2024

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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 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 due are 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 findings arrived herein above, the Tribunal

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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 are

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availed for Agriculture purpose and also that the 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 of 6.00% (simple).

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In the result, OA.No.261/2024, stands allowed,

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

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OA 261/2024

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27,19,497.00 (Rupees Twenty Seven Lakh Nineteen Thousand Four

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Hundred Ninety Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants Nos. 1,

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2 & 3 jointly, severally & 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 proceeding against the schedule property irrespective of the fact that schedule property is transferred to the defendant No.4 through sale deed. 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

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amount due and payable to the applicant bank, the defendants Nos. 1, 2

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& 3 jointly, severally & personally and their assets are liable for amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) Interim order of temporary injunction passed in IA No. 1669/2023 in OA 261/2024 is made absolute.

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v) 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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vi) Interim application pending, if any, stands disposed of in terms

OA 261/2024

of this final order.

15. 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 19^th Day of November, 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:Ramanijini B, 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	A copy of the loan application dated 31.08.2005
A2	A copy of the sanction memorandum dated 02.09.2005
A3	A copy of the promissory notice and take delivery letter to DPN dated 13.09.2005
A4	A copy of the Memorandum of agreement dated 13.09.2005
A5 &A6	A copy of the authorization letter and undertaking letter both dated 13.09.2005
A7	A copy of the registered memorandum of simple mortgage deed dated 08.09.2005
A8	A copy of the acknowledgement of security/ liability letter dated 02.0.2016
A9 & A10	The copies of the revival letter dated 24.06.2008 & 20.06.2011
A11 & A12	The copies of the revival letter dated 12.02.2014 & 02.04.2016
A13 &A14	The copies of the revival letter dated 01.04.2019 & 11.03.2022
A15	A copy of the legal notice dated 13.07.2023

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OA 261/2024

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A16	A copy of the sale deed dated 13.07.2023
A17	A copy of the RTC for the year 2022-23
A18	A copy of the statement of tractor loan account No. 59415325000505

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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. Sri Sanna Alamappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Sanna Alamappa

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

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Case details

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