Allowed

Karnataka Gramin Bank v. Sri. Ninge Gowda Dead by Lrs Deveeramma

DRT19 Jun 2025OA/431/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the application under section 19 of the RDB Act. Borrowers were deceased and represented by legal heirs. The debt of Rs. 41.57 lakhs was admitted in absentia. Relief granted included reduced interest at 8% p.a. and recovery against schedule properties and assets of heirs. Recovery certificate to be issued.

What did the court decide?

Recovery Certificate issued for Rs. 41,57,457/- with reduced interest of 8% p.a. against the defendants and the estate of the deceased legal heirs.

Karnataka Gramin Bank versus Sri. Ninge Gowda Dead by Lrs… — 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 June, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No. 431/2023

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BETWEEN:

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Karnataka Gramin Bank, Jodi Gubbi Branch, Jodigubbi Village & Post, HalliMysore Hobli, Holenarasipur Taluk, Hassan District- 573102.

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Represented by its, Branch Manager.

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…APPLICANT

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AND:

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Sri. Ninge Gowda Dead by LRs

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1(A) Smt. Deveeramma, W/o Late Ninge Gowda, Aged about 65 years.

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1(B) Manjula, D/o Late Ninge Gowda, Aged about 42 Years.

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1(C) Radha,

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D/o. Late Ninge Gowda, Aged about 41 Years.

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1(D) Chandramma, D/o. Late Ninge Gowda, Aged about 39 Years.

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OA 431/2023

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1(E) Chandrashekara, S/o Late Ninge Gowda, Aged about 38 Years.

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1(F) Mohana, S/o Late. Ninge Gowda, Aged about 37 years.

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1(G) Rajesha, S/o Late Ninge Gowda, Aged about 37 years.

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1(H) Suresha, S/o Late Ninge Gowda, Aged about 36 years.

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Deveeramma, W/o Late Ninge Gowda, Aged about 65 years.

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All are residents of: Odanahally Village, Niduvani Post, Hallimysore Hobli, Holenarasipur Taluk, Hassan District- 573211. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. G. Lokesh Murthy 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. 41,57,457/- (Rupees Forty One Lakh Fifty Seven Thousand Four Hundred and Fifty Seven Only) with further

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OA 431/2023

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

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It is the case of the applicant that the borrower Ningegowda is deceased and he is represented by his LRs defendant Nos. 1(A) to 1(H).

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It is the case of the applicant that, the Defendant Nos 2 [Also defendant No. 1(A)] along with the deceased borrower availed ACC-Crop loan limit of Rs. 3.00 lakhs, FML –Tractor loan limit of Rs. 5.00 lakhs, ATL-pipeline limit of Rs. 1.80 lakhs and ACC crop loan limit of Rs. 4.86 lakhs.

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It is also the case of the applicant that, in view of the above availed loans, the deceased borrower along with defendant No.2 executed hypothecation agreement, declaratory charge and the deceased borrower and defendant No.2 along with defendants No. 1(E) to 1(H) have executed Simple mortgage deed in favour of the applicant bank.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan accounts promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan

OA 431/2023

accounts as NPA.

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of a 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 exparte on 21.11.2024.

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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-28 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: 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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OA 431/2023

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The case put forth by the applicant in the Application

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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 the 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 defendants and the claim of 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 findings arrived herein above, the

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Tribunal find both these issues in favour of applicant and hence,

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this Tribunal is of the view that OA is liable to be allowed.

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13. Taking into consideration the facts that the credit facilities

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are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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in view of the OA can be allowed with a reduced interest of

OA 431/2023

8.00% (simple).

In the result, OA.No.431/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 41,57,457/- (Rupees Forty One Lakh Fifty Seven Thousand Four Hundred and Fifty Seven Only) with further interest of 8 % p.a.(simple) from the date of filing this OA till the date of realization from the Defendants Nos. 1(E) to 1(H) and defendant Nos. 2 jointly, severally & 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 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

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the amount due and payable to the applicant bank as directed above the Defendants Nos. 1(E) to 1(H) and defendant Nos. 2 and their assets are liable to be proceeded against.

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iii) The defendant No.1(b) to 1(d) being the LRs of the deceased borrower Ningegowda are liable to the extent of the estate inherited by them from the deceased borrower are liable

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OA 431/2023

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to be proceeded against.

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iv) The applicant bank is allowed cost of the proceedings

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

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v) 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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vi) Interim Application pending, if any, are disposed of

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with this Final Order.

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15. 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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of June, 2025].

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Sd/- (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: H. Mallikarjuna Swamy S/o Hirigaiah, Branch Manager, of Applicant Bank.

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OA 431/2023

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Oral Evidence by way of affidavit
A2	List of documents
A3	Copy of loan application with sanction dated
A4	Copy of terms and condition letter dated 06.01.2011
A5	Copy of mortgage deed dated 06.01.2011
A6	Copy of simple mortgage dated 05.01.2011
A7 & A8	Copy of simple mortgage dated 05.01.2011
A9 & A10	Copy of tractor loan application dated 27.04.2011 and quotation dated 10.03.2011
A11 & A12	Copy of mortgage deed and deed of hypothecation both dated 11.08.2011
A13	Copy of simple mortgage dated 10.08.2011
A14	Copy of “B Extract register- Tractor dated 26.06.2019
A15 & A16	Copy of ATL Application cum sanction dated 21.04.2012 and accepted terms and condition letter dated 21.04.2012
A17 & A18	Copy of mortgage deed dated 21.04.2012 and declaratory charge dated 17.04.2012
A19 & A20	Copy of KCC Loan application and sanction letter dated 27.05.2012 with accepted terms and condition letter dated 27.05.2013
A21 & A22	Copy of mortgage deed dated 27.05.2013 and declaratory charge dated 24.05.2013
A23 & A24	Copy of legal notice, dated 21.11.2022 & RPAD postal receipts
A25 to A28	Certified copy 4 loan account statement

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

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PRESIDING OFFICER

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Sd/- (T. RAJESH)

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9 OA 431/2023

Karnataka Gramin Bank v. Sri. Ninge Gowda Dead by Lrs Deveeramma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri. Ninge Gowda Dead by Lrs Deveeramma

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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